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 liquidity, asset quality, and financial strength, operating without a traditional branch network and leveraging technology for digital banking and treasury management.

• As of June 30, 2024, held $1.4 billion in assets, $1.3 billion in deposits, and $94 million in stockholders’ equity; 94.2% of deposits are transaction accounts.

• Deposit base is highly concentrated among political organizations, especially those affiliated with the U.S. Republican Party, and exhibits significant seasonality around federal election cycles.

Financial performance and metrics

• Net income for the six months ended June 30, 2024 was $9.7 million, up from $2.7 million in the prior year period; annualized return on average equity was 22.2%.

• Net interest income for the same period was $19.4 million, with a net interest margin of 3.30%.

• Book value per share increased 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% as of June 30, 2024; allowance for credit losses on loans was 1.42% of gross loans.

• No non-performing assets reported since June 2012; cumulative net loan charge-offs of $265,000 in company history.

Use of proceeds and capital allocation

• Net proceeds of approximately $38.9 million (or $45.4 million if underwriters’ option is exercised) expected, based on a $25.00 per share IPO price.

• Proceeds will be used for general corporate purposes, supporting organic deposit growth, potential strategic expansion, and repayment of a $10 million unsecured line of credit.

• Post-offering, tangible common equity to tangible total assets ratio expected to rise to 9.22%.