Chain Bridge Bancorp (CBNA) Registration filing summary

Company overview and business model

• Operates as a Delaware-chartered bank holding company with a single subsidiary, a nationally chartered commercial bank with fiduciary powers.

• Provides commercial and personal banking, trust, and wealth management services nationwide, with a focus on political organizations and high-transaction commercial clients.

• Emphasizes a technology-driven, branchless model, serving clients electronically and from a single headquarters.

• Maintains a conservative banking philosophy prioritizing liquidity, asset quality, and financial strength.

• Specializes in deposit services for political organizations, which constitute a majority of deposits and drive seasonal balance sheet fluctuations.

Financial performance and metrics

• As of June 30, 2024: total assets $1.4B, deposits $1.3B, net loans $300.4M, stockholders’ equity $94.0M.

• Net income for the six months ended June 30, 2024 was $9.7M, up from $2.7M in the prior year period.

• Book value per share grew at a CAGR of 8.5% since 2007, reaching $3,497.30 as of June 30, 2024.

• Efficiency ratio improved to 49.7% (annualized) for the six months ended June 30, 2024.

• Loan-to-deposit ratio was 23.4%, with 94.2% of deposits in transaction accounts.

• Net interest margin rose to 3.30% for the six months ended June 30, 2024.

• No non-performing assets since 2012; allowance for credit losses on loans at 1.42% of gross loans.

Use of proceeds and capital allocation

• Net proceeds will be used to repay a $10M unsecured line of credit and for general corporate purposes, including supporting organic deposit growth and potential strategic expansion.

• Management retains broad discretion over allocation and timing of use of proceeds.