Chain Bridge Bancorp (CBNA) Q3 2024 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2024 was $17.2 million, up from $5.5 million year-over-year, with EPS rising to $3.77 from $1.21.

• Q3 2024 net income was $7.5 million, up from $5.8 million in Q2 2024 and $2.8 million in Q3 2023.

• Book value per share increased to $22.95 at September 30, 2024, from $20.57 at June 30, 2024, and $16.45 at September 30, 2023.

• Total assets reached $1.6 billion, and deposits were $1.4 billion as of September 30, 2024, both up significantly from year-end 2023.

• The company completed an IPO in October 2024, raising $33.6 million in net proceeds and repaid $10 million in short-term borrowings.

Financial highlights

• Net interest income for the nine months was $33.0 million, up 65.3% year-over-year, with Q3 2024 net interest income at $13.6 million.

• Noninterest income rose 279.1% to $7.4 million for the nine months, with Q3 2024 non-interest income at $3.1 million, mainly from deposit placement services.

• Noninterest expense increased 32.8% to $19.2 million, primarily due to higher salaries, benefits, and professional services costs associated with the IPO.

• Return on average equity was 25.00% for the nine months and 29.90% annualized for Q3 2024; return on average assets was 1.79% for the nine months and 2.03% annualized for Q3 2024.

• Book value per share increased to $22.95 from $18.26 at year-end 2023.

Outlook and guidance

• Deposit outflows are expected to continue through Q4 2024 and into early 2025, following the typical post-election cycle pattern.

• Lower short-term interest rates, as initiated by the Federal Reserve in September 2024, are anticipated to reduce net interest income going forward.

• The company expects continued elevated liquidity and will manage deposit seasonality with high cash reserves and ICS® network participation.