Chain Bridge Bancorp, Inc. Announces Financial Results for the Third Quarter and First Nine Months of 2025
Chain Bridge Bancorp, Inc. the holding company for Chain Bridge Bank, N.A., released its financial results for the third quarter and the nine-month period ended September 30, 2025. The company reported stable profitability, solid liquidity, and continued balance sheet strength during the quarter, reflecting consistency in performance during what is historically a quieter period for political deposits.
Chairman Peter G. Fitzgerald commented on the quarter’s results, emphasizing the company’s continued resilience:
For the third quarter, the Company reported net income of $4.7 million, producing a return on average equity of 11.67%. The Company ended the period with a Tier 1 leverage ratio of 11.34% and Tier 1 and total risk-based capital ratios of 44.43% and 45.56%, and maintained a liquidity ratio of 89.54%. Deposit activity during the quarter was consistent with historical patterns for a non-election year.
Third Quarter 2025 Financial Highlights
(Three months ended September 30, 2025)
- Net Income: $4.7 million
- Earnings Per Share: $0.72 per basic and diluted share
- Return on Average Equity: 11.67% (annualized)
- Return on Average Assets: 1.27% (annualized)
- Book Value Per Share: $24.86
Year-to-Date 2025 Financial Highlights
(Nine months ended September 30, 2025)
- Net Income: $14.9 million
- Earnings Per Share: $2.27 per share
- Return on Average Equity: 12.93% (annualized)
- Return on Average Assets: 1.33% (annualized)
Quarterly Performance Overview
For the third quarter of 2025, Chain Bridge Bancorp generated net income of $4.7 million, a slight improvement over the $4.6 million recorded in the prior quarter. Earnings per share rose modestly to $0.72 from $0.70 in the second quarter, reflecting incremental earnings growth. However, results declined compared to the third quarter of 2024, when the company reported $7.5 million in net income and $1.64 in earnings per share.
The year-over-year decrease was primarily tied to lower deposit placement services income and lower net interest income. Deposit activity in the prior-year period was amplified by elevated cash flows from political organizations during the 2024 federal election cycle—a pattern not present in the current non-election year.
The company also experienced higher noninterest expenses in comparison to both prior periods due to salary and employee benefit increases associated with growing operational infrastructure and ongoing public company requirements.
Deposit and Balance Sheet Trends
Total consolidated deposits reached $1.4 billion as of September 30, 2025, up from $1.3 billion at June 30, 2025. The increase reflected rebuilding inflows in political organization deposits during the quarter. Deposits placed through the IntraFi Cash Service® (ICS®) One-Way Sell® program rose to $146.4 million, compared to $121.2 million in the prior quarter.
However, deposits remained below levels seen in 2024, when political deposit balances increased significantly leading up to the federal election cycle. As expected, the company experienced outflows following the 2024 elections and a normalization of deposit flows in early 2025. A gradual rebuilding trend emerged later in the year.
Year-to-Date Results and Earnings Drivers
For the first nine months of 2025, Chain Bridge Bancorp reported $14.9 million in net income, down from $17.2 million in the same period of 2024. The decline was driven primarily by:
- $5.0 million decrease in noninterest income, related to reduced One-Way Sell® deposit activity and greater usage of reciprocal ICS® deposits.
- $2.9 million increase in noninterest expenses, tied to operational expansion and public-company infrastructure.
These effects were partially offset by:
- $4.9 million increase in net interest income, driven by expansion in the investment securities portfolio.
Earnings per share declined to $2.27 from $3.77 in the prior-year period due to lower net income and the higher share count resulting from the company’s October 2024 IPO, in which it issued nearly 2 million new shares of Class A common stock.
Book Value Growth
Book value per share increased to $24.86 at September 30, 2025, compared to $21.98 at December 31, 2024, reflecting retained earnings and higher unrealized gains on investment securities as treasury yields declined and securities approached maturity.
Stockholders’ equity rose $18.9 million during the first nine months of 2025 and increased $58.3 million year-over-year, driven by retained earnings and net proceeds from the company’s IPO and subsequent over-allotment exercise.
Net Interest Income and Margin
Net interest income for the third quarter rose to $12.3 million from $11.8 million in the second quarter. However, both net interest income and net interest margin were lower compared to the third quarter of 2024.
- Net Interest Margin (Q3 2025): 3.35%
- Q2 2025: 3.39%
- Q3 2024: 3.73%
The decline in margin compared to 2024 reflects lower yields on interest-bearing reserves and increased interest expense on deposits. The unusually strong deposit inflows during the election year in 2024 had temporarily elevated earnings.
Noninterest Income and Expenses
Noninterest income totaled $847 thousand in the third quarter, down significantly from $3.1 million in the third quarter of 2024. The reduction was driven primarily by decreased deposit placement services income due to changes in deposit composition following the IPO.
Noninterest expenses totaled $7.3 million, essentially unchanged from the prior year, though year-to-date expenses reflect higher personnel and operating costs associated with public-company operations and strategic growth.
Balance Sheet and Liquidity Strength
As of September 30, 2025:
- Total Assets: $1.5 billion
- Investment Securities: $831.5 million
- Loans (Net): $280.0 million
- Loan-to-Deposit Ratio: 20.82%
The company maintained no non-performing assets, consistent with its historically conservative credit strategy.
Liquidity remained robust, with a liquidity ratio of 89.54% and $1.2 billion in cash, equivalents, and unpledged securities.
Capital Position
Chain Bridge Bancorp continues to operate with exceptionally high capital levels:
| Ratio | 9/30/2025 | 6/30/2025 | 9/30/2024 |
|---|---|---|---|
| Tier 1 Leverage Ratio | 11.34% | 11.45% | 7.59% |
| Tier 1 Risk-Based Capital | 44.43% | 43.48% | 28.17% |
| Total Risk-Based Capital | 45.56% | 44.64% | 29.29% |
The year-over-year improvements reflect retained earnings and capital raised through the IPO.
Trust & Wealth Management Growth
The Trust & Wealth Department continued to expand, with total assets under administration reaching $552.4 million, up from $445.4 million in the prior quarter and $384.0 million a year earlier. Growth reflected both new client onboarding and market performance.
Trust and wealth management fee income rose accordingly to $355 thousand in the third quarter, up from $305 thousand in the prior quarter and $243 thousand in the year-ago period.
Political Deposit Dynamics
As expected, deposit inflows associated with political organizations moderated following the 2024 election cycle. The company observed rebuilding activity in the third quarter as political fundraising normalized ahead of future campaign cycles. Management reaffirmed that political deposits tend to fluctuate around federal election cycles and remain a core, though variable, deposit segment.
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