Chain Bridge Bancorp Reports Strong Third-Quarter 2026 Results as Net Income Rises to $10.9 Million
Chain Bridge Bancorp, Inc. (NYSE: CBNA), the holding company for Chain Bridge Bank, N.A., has announced its financial results for the third quarter and the nine months ended September 30, 2026, reporting higher earnings, improved net interest income and continued growth in book value per share.
The company reported consolidated net income of $10.9 million for the third quarter of 2026, compared with $9.5 million in the second quarter of 2026 and $4.7 million in the third quarter of 2025. Earnings per basic and diluted common share reached $1.66, up from $1.45 in the preceding quarter and $0.72 in the same period last year.
For the first nine months of 2026, consolidated net income totaled $27.5 million, compared with $14.9 million for the corresponding period in 2025. The results reflected higher net interest income, increased deposit placement services income and growth in the company’s interest-earning assets.
The company also reported an annualized return on average equity of 22.84% and an annualized return on average assets of 1.92% for the third quarter. For the nine months ended September 30, 2026, annualized return on average equity was 20.31%, while annualized return on average assets reached 1.81%.
Book value per share increased to $29.24 at September 30, 2026, compared with $25.79 at December 31, 2025, and $24.86 at September 30, 2025.
Third-Quarter Earnings Reflect Higher Net Interest Income
Chain Bridge Bancorp’s third-quarter financial performance was primarily supported by an increase in net interest income, which rose to $19.9 million from $17.1 million in the second quarter of 2026. The company generated $12.3 million in net interest income in the third quarter of 2025.
The $2.8 million sequential increase in net interest income was primarily driven by deposit-related cash inflows. These inflows increased the average balance of interest-bearing deposits held at other banks by $262.7 million, generating an additional $2.6 million in interest income.
Higher net interest income helped offset increases in credit loss provisions, noninterest expenses and income tax expense during the quarter.
The provision for loan credit losses increased by $525,000 compared with the second quarter, reflecting loan growth during the period. Total noninterest expenses rose by $471,000, while income tax expense increased by $375,000 as a result of higher pretax income.
Despite these additional costs, net income increased by $1.4 million from the previous quarter, demonstrating the contribution of stronger interest earnings to overall profitability.
Compared with the third quarter of 2025, net income increased by $6.2 million. The improvement was primarily attributable to a $7.6 million increase in net interest income and a $1.8 million increase in deposit placement services income.
These gains were partially offset by a $574,000 increase in the provision for credit losses, a $1.2 million rise in noninterest expenses and a $1.7 million increase in income tax expense.
Nine-Month Net Income Increases to $27.5 Million
For the nine months ended September 30, 2026, Chain Bridge Bancorp reported consolidated net income of $27.5 million, compared with $14.9 million during the same period in 2025.
The increase of $12.6 million reflected higher net interest income and stronger fee-related revenue. Net interest income increased by approximately $13.9 million, while deposit placement services income rose by $5.2 million.
The overall improvement was partially offset by a $534,000 increase in the provision for credit losses, a $3.4 million increase in noninterest expenses and a $3.3 million increase in income tax expense.
The nine-month results indicate that interest-generating assets and deposit-related services made substantial contributions to the company’s earnings performance. The growth also came alongside changes in the company’s deposit balances and the mix of funds held on its balance sheet.
The company’s annualized return on average equity reached 20.31% for the first nine months of the year, while annualized return on average assets was 1.81%.
These measures provide insight into how effectively the company generated earnings from shareholder capital and its overall asset base during the reporting period.
Total Deposits Reach $2.1 Billion
Chain Bridge Bancorp reported consolidated total deposits of $2.1 billion as of September 30, 2026, compared with $2.0 billion at June 30, 2026, and $1.4 billion at September 30, 2025.
Total deposits increased by $63.5 million during the third quarter. The year-over-year increase reflected growth in political organization deposit balances and other categories, including deposits from organizations classified under Section 501(c)(4) of the Internal Revenue Code.
The company noted that political organization depositors exhibited heightened activity during the quarter ended September 30, 2026. This pattern was consistent with the seasonality the company has historically observed in the quarters leading up to a federal election.
Political organizations can experience changes in their cash requirements and deposit balances as fundraising, campaign activities and election-related expenditures evolve. Such movements can affect the amount and timing of deposits held directly by a bank and the balances placed through deposit networks.
Chain Bridge Bancorp’s reported deposit figures also include the effects of IntraFi Cash Service, or ICS, One-Way Sell deposits. These deposits are placed at other participating banks through the ICS network and are moved off the company’s balance sheet.
ICS One-Way Sell deposits totaled $498.5 million at September 30, 2026, compared with $668.0 million at June 30, 2026, and $146.4 million at September 30, 2025.
The balance declined by $169.5 million during the third quarter, primarily because of reductions in political organization deposit balances.
Although One-Way Sell balances decreased sequentially, both total deposits and One-Way Sell deposits remained significantly higher than their respective year-earlier levels. The year-over-year increases reflected growth in political organization deposits and other deposit categories.
The company explained that One-Way Sell balances can change because of deposit seasonality, balance-sheet management decisions and available capital capacity. These factors can influence whether deposits remain on the company’s balance sheet or are placed with other banks through the ICS network.
Net Interest Margin Improves to 3.53%
Net interest margin, an important measure of banking profitability, increased to 3.53% in the third quarter of 2026 from 3.45% in the second quarter and 3.35% in the third quarter of 2025.
The improvement reflected growth in net interest income that outpaced growth in average interest-earning assets.
Deposit-related cash inflows contributed to higher balances of interest-bearing deposits held at other banks. The company also benefited from growth in its taxable investment securities portfolio and a reduction in interest expense.
Compared with the third quarter of 2025, the average balance of interest-bearing deposits held at other banks increased by $532.0 million. This growth generated an additional $4.4 million in interest income.
However, lower short-term interest rates compared with the year-earlier period partially offset the benefit of the higher deposit balances.
The average balance of the company’s taxable investment securities portfolio also increased by $255.9 million year over year. Growth in the portfolio, together with higher yields, generated an additional $2.7 million in interest income.
Meanwhile, a decline in both the cost and size of interest-bearing liabilities reduced interest expense by $458,000.
Together, these developments helped the company increase net interest income from $12.3 million to $19.9 million over the year and improve its net interest margin by 18 basis points.
Net interest margin is influenced by the difference between income earned on loans, securities and other interest-bearing assets and the cost of deposits and other interest-bearing liabilities. Changes in interest rates, deposit composition and asset allocation can therefore affect the measure from one reporting period to another.
Nine-Month Net Interest Income Rises to $51.9 Million
For the nine months ended September 30, 2026, Chain Bridge Bancorp generated net interest income of $51.9 million, compared with $37.9 million in the corresponding period of 2025.
Net interest margin increased to 3.47% from 3.44% over the same period.
The increase in net interest income was supported by higher interest income from taxable investment securities and interest-bearing deposits held at other banks, along with lower interest expense.
The company’s average taxable investment securities portfolio balance increased by $284.5 million during the nine-month comparison period. The average yield earned on these investments also rose by 29 basis points, contributing an additional $8.6 million in interest income.
Interest-bearing deposits held at other banks increased by an average of $266.0 million. However, the yield on these balances declined by 73 basis points, reflecting lower short-term interest rates during 2026.
The lower yield moderated the income generated by the larger deposit balance, resulting in a net increase of approximately $5.1 million in interest income from this category.
The company also benefited from a $1.1 million reduction in interest expense, driven by a decline in the cost and size of interest-bearing liabilities.
These factors helped net interest income grow faster than average interest-earning assets, supporting the improvement in net interest margin.
The results highlight the importance of the company’s investment portfolio and cash management activities in its earnings performance. Changes in market interest rates and the mix of assets and liabilities will continue to influence how these sources contribute to future financial results.
Deposit Placement Services Support Noninterest Income
Chain Bridge Bancorp reported noninterest income of $2.9 million in the third quarter of 2026, approximately unchanged from the second quarter but significantly higher than the $847,000 recorded in the third quarter of 2025.
Deposit placement services income accounted for a substantial portion of this revenue. The company reported $2.0 million in deposit placement services income during the third quarter, compared with $2.1 million in the preceding quarter and $174,000 in the third quarter of 2025.
This income is linked to the volume of One-Way Sell deposits placed at other banks through the ICS network and the rates paid by ICS for those deposits.
The sequential decline in deposit placement services income was less pronounced than the decrease in period-end One-Way Sell balances. The company attributed the difference to average deposit balances during the third quarter, which remained generally consistent with the preceding quarter.
Period-end deposit balances represent the amount recorded on a specific date, while average balances reflect deposit levels throughout a reporting period. The distinction helps explain why revenue does not necessarily move in direct proportion to balances at quarter-end.
The rate paid by ICS for One-Way Sell deposits also affects the income generated from the service. These rates typically adjust in a manner parallel to changes in the federal funds rate.
For the first nine months of 2026, noninterest income increased to $8.3 million from $2.4 million in the corresponding period of 2025.
Deposit placement services income rose to $5.7 million from $466,000, accounting for a significant portion of the year-over-year increase. Income from trust and wealth management services also contributed to the improvement.
The growth in this revenue category reflects changes in the volume of deposits placed through the ICS network and the related income earned by the company. Because deposit volumes and rates can fluctuate, this source of revenue may vary with customer activity and broader interest-rate conditions.
Book Value Per Share Advances to $29.24
Chain Bridge Bancorp’s book value per share reached $29.24 at September 30, 2026, compared with $25.79 at December 31, 2025, and $24.86 at September 30, 2025.
Book value per share measures the company’s stockholders’ equity attributable to common shareholders on a per-share basis. Its increase during 2026 was primarily supported by retained earnings generated through the company’s profitability.
During the first nine months of 2026, retained earnings increased by $27.5 million. This contribution was partially offset by a $4.9 million increase in accumulated other comprehensive loss.
The change in accumulated other comprehensive loss reflected lower fair values of available-for-sale investment securities as intermediate- and longer-term market interest rates, including U.S. Treasury yields, rose during 2026.
Available-for-sale securities are recorded at fair value, and movements in market interest rates can affect their reported values. When market yields rise, the fair values of existing fixed-income securities can decline, depending on factors such as their maturity and interest-rate sensitivity.
These valuation changes can affect accumulated other comprehensive income or loss within stockholders’ equity, even when the securities are not sold.
On a year-over-year basis, retained earnings increased stockholders’ equity by $32.9 million. This was partially offset by a $4.1 million increase in accumulated other comprehensive loss.
The company attributed the year-over-year change to lower fair values across its available-for-sale investment securities portfolio as intermediate- and longer-term market interest rates increased over the twelve months ended September 30, 2026. The larger portfolio balance also contributed to the change.
Despite these valuation effects, the growth in retained earnings supported an increase in book value per share over both the nine-month and twelve-month comparison periods.
Credit Provisions and Operating Expenses
The company’s financial results also reflected increases in credit loss provisions and operating expenses.
During the third quarter of 2026, the provision for loan credit losses increased by $525,000 compared with the second quarter. The company linked the increase to loan growth during the period.
For the year-over-year quarterly comparison, the provision for credit losses increased by $574,000. Across the first nine months of 2026, the provision increased by $534,000 compared with the same period in 2025.
Credit loss provisions are an important component of a bank’s financial reporting because they reflect estimates of potential losses associated with lending activities. Changes in the provision can be influenced by loan growth, portfolio composition, borrower conditions and other factors affecting expected credit losses.
Noninterest expenses also increased during the reporting periods. The company recorded a $471,000 sequential increase in total noninterest expenses during the third quarter, while expenses were $1.2 million higher than in the third quarter of 2025.
For the nine-month period, noninterest expenses increased by $3.4 million year over year.
Income tax expense also rose as earnings increased. The company reported a $375,000 sequential increase in income tax expense and a $1.7 million increase compared with the third quarter of 2025. For the first nine months of the year, income tax expense increased by $3.3 million.
Although these items partially offset revenue growth, the company recorded higher net income in both the quarterly and year-to-date comparisons.
Chain Bridge Bancorp’s third-quarter results showed stronger profitability, an expanding net interest income base and an increase in book value per share. Consolidated net income more than doubled compared with the third quarter of 2025, while nine-month net income rose to $27.5 million from $14.9 million a year earlier.
The company’s net interest margin improved in both the quarterly and year-to-date comparisons, supported by changes in interest-earning asset balances, investment yields and funding costs. Deposit placement services also made a larger contribution to noninterest income during the first nine months of 2026.
At the same time, the results illustrate the importance of deposit activity and market interest rates to the company’s financial performance. Political organization deposits showed heightened activity during the quarter, consistent with historical patterns leading up to a federal election. Changes in these balances influenced both reported deposits and the volume of funds placed through the ICS network.
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