Sign in

You're signed outSign in or to get full access.

CB

CHAIN BRIDGE BANCORP INC (CBNA)·Q2 2025 Earnings Summary

Executive Summary

  • EPS of $0.70 beat Wall Street consensus of $0.53; revenue of $12.94M was above the $11.99M consensus, despite sequential NIM compression and deposit outflows early in the quarter. The beat was driven by resilient investment securities yield and controlled OpEx while political deposits partially rebuilt late in the quarter ; EPS/Revenue consensus and actuals from S&P Global*.
  • Net interest income fell to $11.79M from $13.85M in Q1 2025 on lower average interest-earning assets following April 15 outflows, while NIM slipped to 3.39% from 3.56% sequentially; efficiency ratio deteriorated to 56.71% from 52.06% .
  • Deposits ended at $1.28B versus $1.57B in Q1; however, deposits rose $179.8M between April 15 and June 30, signaling stabilization into quarter-end. Book value per share increased to $23.92; capital ratios improved materially (Tier 1 leverage 11.45%) aided by lower assets and retained earnings .
  • Strategic catalysts: inclusion in the Russell 3000 Index on June 30 and continued zero non-performing assets; Trust & Wealth AUA grew to $445.4M with AUM of $158.1M, supporting fee income momentum .

What Went Well and What Went Wrong

What Went Well

  • Political deposits partially recovered after mid-April outflows: “Deposits then increased by $179.8 million from April 16 through June 30, ending the quarter at $1.3 billion” (Peter G. Fitzgerald, Chairman) .
  • Capital strength improved: TCE/TA rose to 10.86% (from 8.77% in Q1), Tier 1 leverage to 11.45%, and total risk-based capital to 44.64%, providing ample buffers amid deposit volatility .
  • Trust & Wealth momentum: AUA increased to $445.4M (AUM $158.1M, AUC $287.3M), with trust & wealth income up sequentially to $305K, and NPA remained 0.00% .

What Went Wrong

  • Sequential earnings compression: Net income fell to $4.58M from $5.61M in Q1 and $5.81M in Q2 2024, as early-quarter outflows reduced average Fed balances and interest income; NIM declined to 3.39% from 3.56% .
  • Efficiency deterioration: Efficiency ratio worsened to 56.71% (from 52.06% in Q1; 45.48% in Q2 2024) as noninterest expenses remained elevated for public-company operations .
  • Deposit concentration risk persists: Two political organization accounts >5% of total deposits at quarter-end, and ICS® One-Way Sell® activity remains far below last year, constraining deposit placement services income .

Financial Results

Q2 2025 Consensus vs Actual

MetricConsensusActual
Revenue ($USD Millions)$11.99*$12.94*
EPS ($USD)$0.53*$0.70
Primary EPS - # of Estimates3*—
Revenue - # of Estimates2*—

Values retrieved from S&P Global*.

Income and Profitability (Quarterly)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Net Interest Income ($USD Millions)$10.57 $11.36 $13.85 $11.79
Noninterest Income ($USD Millions)$2.63 $1.22 $0.70 $0.83
Net Income ($USD Millions)$5.81 $3.74 $5.61 $4.58
EPS ($USD)$1.27 $0.59 $0.85 $0.70
Net Interest Margin (%)3.43% 3.46% 3.56% 3.39%
Efficiency Ratio (%)45.48% 60.95% 52.06% 56.71%

Balance Sheet and Liquidity (Quarterly)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Total Deposits ($USD Millions)$1,303.34 $1,249.94 $1,568.39 $1,281.92
Total Assets ($USD Millions)$1,412.02 $1,401.12 $1,726.86 $1,445.13
Interest-bearing Reserves at Fed ($USD Millions)$471.17 $406.70 $620.27 $364.84
ICS® One-Way Sell® Deposits ($USD Millions)$499.25 $63.32 $93.19 $121.17
Liquidity Ratio (%)82.64% 85.13% 89.14% 88.21%
Book Value Per Share ($)$20.57 $21.98 $23.09 $23.92

Capital Ratios (Quarterly)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
TCE / TA (%)6.66% 10.30% 8.77% 10.86%
Tier 1 Leverage (%)8.30% 11.48% 9.88% 11.45%
Tier 1 Risk-based (%)26.27% 38.12% 40.24% 43.48%
Total Risk-based (%)27.42% 39.30% 41.43% 44.64%

KPIs and Asset Quality

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Loan-to-Deposit Ratio (%)23.42% 25.09% 19.26% 22.45%
Non-performing Assets / Total Assets (%)0.00% 0.00% 0.00% 0.00%
Trust & Wealth AUA ($USD Millions)$364.02 $330.27 $409.39 $445.36
AUM ($USD Millions)$98.04 $126.80 $137.82 $158.08
AUC ($USD Millions)$265.99 $203.47 $271.57 $287.28

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin“Future periods vs Q1 2025”Management anticipated lower NIM post-April 15 outflows vs Q1 2025 baseline .No quantitative guidance provided in Q2 2025 8-K; forward-looking statements only .Maintained qualitative caution.
Net Interest Income“Future periods vs Q1 2025”Anticipated lower NII vs Q1 2025 due to reduced average interest-earning assets .Not provided quantitatively; forward-looking statements only .Maintained qualitative caution.
Net Income and ROE“Future periods vs Q1 2025”Anticipated lower net income and ROE vs Q1 2025 .Not provided quantitatively; forward-looking statements only .Maintained qualitative caution.
DividendsN/ANone disclosed .None disclosed .Maintained.

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was found in the document catalog; themes below reflect press releases and 8-Ks .

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Political deposit flowsPre/post-election surge then outflows; ICS® One-Way Sell® fell from $432.3M (Q3) to $63.3M (Q4); Q1 noted $506.5M outflow on April 15 and caution on future NIM/NII .Deposits rose $179.8M from Apr 16–Jun 30; two accounts >5% of total deposits at quarter-end .Stabilizing late in Q2; concentration remains.
Liquidity and Fed balancesHigh liquidity ratio; reserves at Fed $406.7M (Q4), $620.3M (Q1) .Reserves at Fed $364.8M; liquidity ratio 88.21% .Down sequentially; still strong.
Net interest margin/yieldNIM improved to 3.56% in Q1 on higher average assets; yields on taxable securities rising .NIM 3.39%; taxable securities yield up to 3.05% (avg) while deposits in banks yield 4.48% with lower balances .NIM down; yield mix shifts to securities.
Capital ratiosIPO proceeds boosted capital; Tier 1 leverage 11.48% (Q4) .Tier 1 leverage 11.45%; total risk-based 44.64% .Strong; modestly higher risk-based.
Trust & WealthAUA $330.3M (Q4) → $409.4M (Q1) .AUA $445.4M; income $305K .Continued growth.
Regulatory/legal/macroCaution on interest rates, deposit seasonality; public company cost impact .Similar forward-looking caution; dual-class structure, macro risks reiterated .Unchanged.

Management Commentary

  • “Deposits then increased by $179.8 million from April 16 through June 30, ending the quarter at $1.3 billion. The Company reported net income of $4.6 million, or $0.70 per basic and diluted share, for the quarter. On June 30, FTSE Russell added Chain Bridge Bancorp, Inc. to the Russell 3000® Index…” — Peter G. Fitzgerald, Chairman .
  • “The sequential decline in net income was primarily attributable to lower interest income following deposit outflows from political organization accounts early in the second quarter.” .
  • Q1 management had flagged the impact: “The Company anticipates that the significant reduction in average interest-earning assets resulting from the outflows will lead to lower net interest margin, lower net interest income, lower net income, and lower return on equity in future periods compared to the first quarter of 2025.” .
  • Capital and liquidity stance: “As of June 30, 2025, the Company’s liquidity ratio was 88.21%… Tier 1 leverage ratio of 11.45%… total risk-based capital ratio of 44.64%.” .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; therefore no Q&A highlights or guidance clarifications could be extracted .
  • Investor-relevant clarifications were provided in 8-K: deposit concentration (two accounts >5%), and political deposit flows’ impact on average balances and NII/NIM .

Estimates Context

  • Results exceeded consensus: EPS $0.70 vs $0.53; revenue $12.94M vs $11.99M; estimates based on limited coverage (3 EPS estimates, 2 revenue). The upside likely reflects stronger-than-expected investment securities income and controlled costs despite lower average interest-earning assets post-outflows*.
  • Given NIM compression (3.39% vs 3.56% in Q1) and still-elevated efficiency ratio (56.71%), near-term estimates may need to reflect normalized deposit levels, lower average Fed balances, and the mix shift toward securities yields, while AUA growth supports fee income*.
    Values retrieved from S&P Global*; actuals cited above.

Key Takeaways for Investors

  • EPS and revenue beat despite pronounced early-quarter deposit outflows; late-quarter rebuild and stable liquidity supported performance .
  • Sequential NIM/NII declines are consistent with management’s prior caution tied to deposit seasonality and lower average interest-earning assets; monitor deposit trends across political clients into H2 .
  • Capital ratios remain a differentiator (Tier 1 risk-based 43.48%, total 44.64%), enabling resilience and optionality with low credit risk (NPA 0.00%) .
  • Fee-income runway from Trust & Wealth (AUA $445.4M, AUM $158.1M) provides diversification; continued growth can partly offset rate/volume pressure on NII .
  • Deposit concentration risk persists (two accounts >5%); investors should watch ICS® One-Way Sell® trajectory and reciprocal deposit strategy for balance-sheet flexibility .
  • Inclusion in Russell 3000® may broaden investor base and liquidity, potentially affecting trading dynamics and demand for shares .
  • Near-term stock drivers: deposit inflow/outflow cadence, NIM stabilization, fee momentum, and disciplined OpEx as a public company; medium-term thesis rests on capital strength, liquidity, and a conservative asset mix while scaling trust and wealth .

Source Documents

  • Q2 2025 8-K 2.02 press release and exhibits .
  • Q1 2025 8-K 2.02 press release and exhibits .
  • Q4 2024 and FY 2024 8-K 2.02 press release and exhibits .

No additional Q2 2025 press releases or a Q2 2025 earnings call transcript were found in the catalog .