CB
CHAIN BRIDGE BANCORP INC (CBNA)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 delivered net income of $3.7M and $0.59 EPS, down sharply sequentially from Q3 2024 ($7.5M, $1.64 EPS) but up year-over-year from Q4 2023 ($3.3M, $0.73 EPS), driven by expected post-election deposit outflows that reduced net interest and fee income .
- Net interest income fell to $11.4M (Q3: $13.6M), and noninterest income dropped to $1.2M (Q3: $3.1M), reflecting lower average interest-earning assets and reduced deposit placement services revenue as political organization balances normalized after the election .
- Liquidity and capital strengthened: liquidity ratio 85.13% (Q3: 85.31%), Tier 1 leverage 11.48% (Q3: 7.59%), Tier 1 risk-based 38.12% (Q3: 28.17%), supported by IPO proceeds; book value per share fell sequentially to $21.98 due to higher share count post-IPO .
- No formal numerical guidance was issued; management highlighted uncertainty and seasonality in political deposits into early 2025, which is the primary near-term stock narrative and catalyst (deposit re-accumulation pace, fee income normalization, NIM trajectory) .
What Went Well and What Went Wrong
What Went Well
- Capital and liquidity materially improved post-IPO: Tier 1 leverage 11.48%, Tier 1 risk-based 38.12%, liquidity ratio 85.13%, providing robust balance sheet flexibility .
- Non-performing assets remained 0.00% of total assets; loan-to-deposit ratio rose to 25.09%, indicating capacity for prudent loan growth without compromising asset quality .
- Trust & Wealth AUM increased q/q to $126.8M (from $111.2M), partially offsetting AUC declines tied to political deposit outflows .
- Management message: “This milestone reflects our focus on liquidity, asset quality, and financial strength” (Chairman Peter G. Fitzgerald) .
What Went Wrong
- Sequential earnings compression: net income fell to $3.7M and EPS to $0.59 due to a $2.3M decrease in net interest income and a $1.9M decrease in noninterest income, as post-election deposit outflows reduced Fed balances and ICS® fee revenue; NIM fell to 3.46% (Q3: 3.73%) .
- ICS® One-Way Sell® deposits plunged to $63.3M (Q3: $432.3M), and total deposits fell to $1.25B (Q3: $1.43B), pressuring average earning assets and fee streams .
- Book value per share declined q/q to $21.98 (Q3: $22.95) as IPO-related share issuance diluted per-share equity despite higher total equity .
Financial Results
Key P&L and Ratio Comparison (oldest → newest)
Interest Income Components (oldest → newest)
Noninterest Income (oldest → newest)
KPIs and Balance Sheet (oldest → newest)
vs Estimates
- Wall Street consensus EPS and revenue estimates via S&P Global were unavailable for Q4 2024 (SPGI data access limit exceeded). Therefore, beats/misses vs consensus cannot be determined [Values retrieved from S&P Global unavailable].
Guidance Changes
Earnings Call Themes & Trends
No earnings call transcript was found for Q4 2024; we rely on the Q4 earnings press release and the Q3 8-K/press release for thematic continuity .
Management Commentary
- “The fourth quarter of 2024 included our initial public offering in October 2024, the first by a U.S. banking institution in over two years. This milestone reflects our focus on liquidity, asset quality, and financial strength” — Peter G. Fitzgerald, Chairman .
- “The change [q/q] was primarily due to a $2.3 million decrease in net interest income and a $1.9 million decrease in noninterest income” — Q4 press release .
- “The decline in total deposits reflects seasonal outflows from political organizations following the 2024 federal election cycle… [and] the conversion of $130.3 million of ICS® One-Way Sell® deposits to reciprocal deposits” .
- “Stockholders’ equity… higher… However, an increase in the number of shares outstanding following the IPO drove a quarter-over-quarter decrease in BVPS” .
Q&A Highlights
- No Q4 2024 earnings call transcript was available; no Q&A highlights can be provided .
Estimates Context
- Wall Street consensus estimates via S&P Global (EPS, revenue) for Q4 2024 were not retrievable (access limit exceeded). As a result, this recap cannot assess beats/misses vs consensus; estimates should be considered unavailable for this period [Values retrieved from S&P Global unavailable].
Key Takeaways for Investors
- Sequential earnings compression was driven by expected post-election deposit outflows and a lower Fed rate on reserve balances; watch deposit re-accumulation pace and IOER trajectory for near-term EPS sensitivity .
- Fee incomes tied to ICS® One-Way Sell® normalized rapidly (Q4: $0.582M vs Q3: $2.464M); a rebound depends on political client activity and potential reciprocal conversions .
- Balance sheet strength improved materially post-IPO (Tier 1 leverage 11.48%, Tier 1 risk-based 38.12%), providing resilience and optionality for growth initiatives .
- Asset quality remains pristine (NPA/Assets 0.00%); underwriting discipline supports downside protection in a volatile deposit environment .
- BVPS fell sequentially due to share issuance despite higher total equity; per-share metrics may recover as earnings accrete against a now larger capital base .
- Trust & Wealth AUM grew q/q; if political AUC stabilizes, this business can provide steadier fee revenue diversification .
- Near-term trading implication: stock narrative hinges on visibility into deposit inflows/outflows and recovery of fee streams; medium-term thesis rests on sustained capital and liquidity strength enabling measured loan growth and NIM stability .