000139227212-31false2025Q2xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purechnbrdg:portfoliochnbrdg:bondchnbrdg:positionchnbrdg:securitychnbrdg:clientchnbrdg:classOfStock00013922722025-01-012025-06-300001392272us-gaap:CommonClassAMember2025-08-110001392272us-gaap:CommonClassBMember2025-08-1100013922722025-06-3000013922722024-12-310001392272us-gaap:CommonClassAMember2025-06-300001392272us-gaap:CommonClassAMember2024-12-310001392272us-gaap:CommonClassBMember2024-12-310001392272us-gaap:CommonClassBMember2025-06-3000013922722025-04-012025-06-3000013922722024-04-012024-06-3000013922722024-01-012024-06-300001392272chnbrdg:TrustAndWealthManagementIncomeMember2025-04-012025-06-300001392272chnbrdg:TrustAndWealthManagementIncomeMember2024-04-012024-06-300001392272chnbrdg:TrustAndWealthManagementIncomeMember2025-01-012025-06-300001392272chnbrdg:TrustAndWealthManagementIncomeMember2024-01-012024-06-300001392272chnbrdg:AccountServiceChargesIncomeMember2025-04-012025-06-300001392272chnbrdg:AccountServiceChargesIncomeMember2024-04-012024-06-300001392272chnbrdg:AccountServiceChargesIncomeMember2025-01-012025-06-300001392272chnbrdg:AccountServiceChargesIncomeMember2024-01-012024-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-12-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-12-310001392272us-gaap:CommonStockMember2023-12-310001392272us-gaap:AdditionalPaidInCapitalMember2023-12-310001392272us-gaap:RetainedEarningsMember2023-12-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100013922722023-12-310001392272us-gaap:RetainedEarningsMember2024-01-012024-03-3100013922722024-01-012024-03-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001392272us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-03-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-03-310001392272us-gaap:CommonStockMember2024-03-310001392272us-gaap:AdditionalPaidInCapitalMember2024-03-310001392272us-gaap:RetainedEarningsMember2024-03-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100013922722024-03-310001392272us-gaap:RetainedEarningsMember2024-04-012024-06-300001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-06-300001392272us-gaap:CommonStockMember2024-06-300001392272us-gaap:AdditionalPaidInCapitalMember2024-06-300001392272us-gaap:RetainedEarningsMember2024-06-300001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000013922722024-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-12-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-12-310001392272us-gaap:CommonStockMember2024-12-310001392272us-gaap:AdditionalPaidInCapitalMember2024-12-310001392272us-gaap:RetainedEarningsMember2024-12-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-01-012025-03-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-01-012025-03-3100013922722025-01-012025-03-310001392272us-gaap:RetainedEarningsMember2025-01-012025-03-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-03-310001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-03-310001392272us-gaap:CommonStockMember2025-03-310001392272us-gaap:AdditionalPaidInCapitalMember2025-03-310001392272us-gaap:RetainedEarningsMember2025-03-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-3100013922722025-03-310001392272us-gaap:RetainedEarningsMember2025-04-012025-06-300001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassAMember2025-06-300001392272us-gaap:CommonStockMemberus-gaap:CommonClassBMember2025-06-300001392272us-gaap:CommonStockMember2025-06-300001392272us-gaap:AdditionalPaidInCapitalMember2025-06-300001392272us-gaap:RetainedEarningsMember2025-06-300001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300001392272us-gaap:CorporateBondSecuritiesMember2025-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-12-310001392272us-gaap:CorporateBondSecuritiesMember2024-12-310001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001392272us-gaap:MortgageBackedSecuritiesMember2023-12-310001392272us-gaap:CorporateBondSecuritiesMember2023-12-310001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-01-012024-06-300001392272us-gaap:MortgageBackedSecuritiesMember2024-01-012024-06-300001392272us-gaap:CorporateBondSecuritiesMember2024-01-012024-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2024-01-012024-06-300001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300001392272us-gaap:MortgageBackedSecuritiesMember2024-06-300001392272us-gaap:CorporateBondSecuritiesMember2024-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2024-06-300001392272chnbrdg:AAAAAAMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272chnbrdg:AAAAAAMemberus-gaap:MortgageBackedSecuritiesMember2025-06-300001392272chnbrdg:AAAAAAMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272chnbrdg:AAAAAAMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272chnbrdg:AAAAAAMember2025-06-300001392272chnbrdg:BBBBBBMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272chnbrdg:BBBBBBMemberus-gaap:MortgageBackedSecuritiesMember2025-06-300001392272chnbrdg:BBBBBBMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272chnbrdg:BBBBBBMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272chnbrdg:BBBBBBMember2025-06-300001392272us-gaap:MortgageBackedSecuritiesMember2025-06-300001392272chnbrdg:AAAAAAMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272chnbrdg:AAAAAAMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310001392272chnbrdg:AAAAAAMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272chnbrdg:AAAAAAMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272chnbrdg:AAAAAAMember2024-12-310001392272chnbrdg:BBBBBBMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272chnbrdg:BBBBBBMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310001392272chnbrdg:BBBBBBMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272chnbrdg:BBBBBBMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272chnbrdg:BBBBBBMember2024-12-310001392272us-gaap:MortgageBackedSecuritiesMember2024-12-310001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310001392272us-gaap:MortgageBackedSecuritiesMember2025-03-310001392272us-gaap:CorporateBondSecuritiesMember2025-03-310001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2025-03-310001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-04-012025-06-300001392272us-gaap:MortgageBackedSecuritiesMember2025-04-012025-06-300001392272us-gaap:CorporateBondSecuritiesMember2025-04-012025-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2025-04-012025-06-300001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310001392272us-gaap:MortgageBackedSecuritiesMember2024-03-310001392272us-gaap:CorporateBondSecuritiesMember2024-03-310001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-04-012024-06-300001392272us-gaap:MortgageBackedSecuritiesMember2024-04-012024-06-300001392272us-gaap:CorporateBondSecuritiesMember2024-04-012024-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2024-04-012024-06-300001392272us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-01-012025-06-300001392272us-gaap:MortgageBackedSecuritiesMember2025-01-012025-06-300001392272us-gaap:CorporateBondSecuritiesMember2025-01-012025-06-300001392272us-gaap:USStatesAndPoliticalSubdivisionsMember2025-01-012025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2025-03-310001392272us-gaap:CommercialPortfolioSegmentMember2025-03-310001392272us-gaap:ResidentialPortfolioSegmentMember2025-03-310001392272chnbrdg:OtherConsumerPortfolioSegmentMember2025-03-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2025-04-012025-06-300001392272us-gaap:CommercialPortfolioSegmentMember2025-04-012025-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2025-04-012025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2025-04-012025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-03-310001392272us-gaap:CommercialPortfolioSegmentMember2024-03-310001392272us-gaap:ResidentialPortfolioSegmentMember2024-03-310001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-03-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-04-012024-06-300001392272us-gaap:CommercialPortfolioSegmentMember2024-04-012024-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2024-04-012024-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-04-012024-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-06-300001392272us-gaap:CommercialPortfolioSegmentMember2024-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2024-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2025-01-012025-06-300001392272us-gaap:CommercialPortfolioSegmentMember2025-01-012025-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2025-01-012025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2025-01-012025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2023-12-310001392272us-gaap:CommercialPortfolioSegmentMember2023-12-310001392272us-gaap:ResidentialPortfolioSegmentMember2023-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMember2023-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-01-012024-06-300001392272us-gaap:CommercialPortfolioSegmentMember2024-01-012024-06-300001392272us-gaap:ResidentialPortfolioSegmentMember2024-01-012024-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-01-012024-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberchnbrdg:LossMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2025-06-300001392272us-gaap:CommercialPortfolioSegmentMemberchnbrdg:LossMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2025-06-300001392272us-gaap:ResidentialPortfolioSegmentMemberchnbrdg:LossMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:PassMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:DoubtfulMember2025-06-300001392272chnbrdg:OtherConsumerPortfolioSegmentMemberchnbrdg:LossMember2025-06-300001392272us-gaap:PassMember2025-06-300001392272us-gaap:SpecialMentionMember2025-06-300001392272us-gaap:SubstandardMember2025-06-300001392272us-gaap:DoubtfulMember2025-06-300001392272chnbrdg:LossMember2025-06-300001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMemberchnbrdg:LossMember2024-12-310001392272us-gaap:CommercialRealEstatePortfolioSegmentMember2024-01-012024-12-310001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMemberchnbrdg:LossMember2024-12-310001392272us-gaap:CommercialPortfolioSegmentMember2024-01-012024-12-310001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMemberchnbrdg:LossMember2024-12-310001392272us-gaap:ResidentialPortfolioSegmentMember2024-01-012024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:PassMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:SpecialMentionMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMemberus-gaap:DoubtfulMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMemberchnbrdg:LossMember2024-12-310001392272chnbrdg:OtherConsumerPortfolioSegmentMember2024-01-012024-12-310001392272us-gaap:PassMember2024-12-310001392272us-gaap:SpecialMentionMember2024-12-310001392272us-gaap:SubstandardMember2024-12-310001392272us-gaap:DoubtfulMember2024-12-310001392272chnbrdg:LossMember2024-12-3100013922722024-01-012024-12-310001392272srt:AffiliatedEntityMember2025-06-300001392272srt:AffiliatedEntityMember2024-12-310001392272chnbrdg:PacificCoastBankersBankMemberus-gaap:LineOfCreditMemberus-gaap:FederalFundsPurchasedMember2025-06-300001392272chnbrdg:FirstNationalBankersBankMemberus-gaap:LineOfCreditMemberus-gaap:FederalFundsPurchasedMember2025-06-300001392272chnbrdg:CommunityBankersBankMemberus-gaap:LineOfCreditMemberus-gaap:FederalFundsPurchasedMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2024-12-310001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2024-12-310001392272us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310001392272us-gaap:FairValueMeasurementsRecurringMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001392272us-gaap:FairValueMeasurementsNonrecurringMemberchnbrdg:LoansHeldForSaleMember2025-01-012025-06-300001392272us-gaap:FairValueMeasurementsNonrecurringMemberchnbrdg:LoansHeldForSaleMember2024-01-012024-12-310001392272us-gaap:FairValueMeasurementsNonrecurringMember2025-06-300001392272us-gaap:FairValueMeasurementsNonrecurringMember2024-12-310001392272us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-06-300001392272us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-06-300001392272us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-06-300001392272us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2025-06-300001392272us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-06-300001392272us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310001392272us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001392272us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001392272us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001392272us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2023-12-310001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-06-300001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2024-01-012024-06-300001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2024-06-300001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-12-310001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2024-12-310001392272us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-06-300001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-01-012025-06-300001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2025-01-012025-06-300001392272us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-06-300001392272chnbrdg:AOCIUnrealizedGainLossOnSecuritiesTransferredFromAvailableForSaleToHeldToMaturityParentMember2025-06-300001392272us-gaap:CommonClassAMember2025-01-012025-06-300001392272srt:ScenarioPreviouslyReportedMemberchnbrdg:OldCommonStockMember2024-10-030001392272us-gaap:CommonClassBMember2024-10-030001392272us-gaap:CommonClassAMember2024-10-072024-10-070001392272us-gaap:CommonClassAMember2024-11-012024-11-010001392272us-gaap:CommonClassAMember2025-04-012025-06-300001392272us-gaap:CommonClassAMember2024-04-012024-06-300001392272us-gaap:CommonClassAMember2024-01-012024-06-300001392272us-gaap:CommonClassBMember2025-04-012025-06-300001392272us-gaap:CommonClassBMember2024-04-012024-06-300001392272us-gaap:CommonClassBMember2025-01-012025-06-300001392272us-gaap:CommonClassBMember2024-01-012024-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 10-Q

_________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 001-42302

_________________________

Chain Bridge Bancorp, Inc.

(Exact name of registrant as specified in its charter)

_________________________


Delaware			20-4957796
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1445-A Laughlin Avenue, McLean, VA			22101
(Address of Principal Executive Offices)			(Zip Code)

(703) 748-2005

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	CBNA	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes o No x

As of August 11, 2025, the registrant had outstanding 3,151,496 shares of Class A Common Stock, par value $0.01 per share and 3,410,321 shares of the registrant's Class B Common Stock, par value $0.01 per share.

Table of Contents

TABLE OF CONTENTS


			Page

Index of Defined Terms and Acronyms			3

Cautionary Note Regarding Forward-Looking Statements			5

Part I - Financial Information			7
Item 1. Financial Statements			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			30
Item 3. Quantitative and Qualitative Disclosures About Market Risk			60
Item 4. Controls and Procedures			61

Part II - Other Information			62
Item 1. Legal Proceedings			62
Item 1A. Risk Factors			62
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			62
Item 3. Defaults Upon Senior Securities			62
Item 4. Mine Safety Disclosures			62
Item 5. Other Information			62
Item 6. Exhibits			63

Signatures			64

Table of Contents

INDEX OF DEFINED TERMS AND ACRONYMS


ACL						Allowance for Credit Losses
AFS						Available for Sale
ALCO						Asset Liability Investment Committee of the Board of Directors of Chain Bridge Bank, N.A.
AOCI						Accumulated Other Comprehensive Income (Loss)
ASU						Accounting Standards Update
Bank						Chain Bridge Bank, N.A.
Board or Board of Directors						The Board of Directors of Chain Bridge Bancorp, Inc.
bps						Basis points, defined as one hundredth of one percentage point
Bylaws						Our amended and restated bylaws, which have been adopted by our Board
Call Report						The Federal Financial Institutions Examination Council (“FFIEC”) Consolidated Reports of Condition and Income, which the Bank files with the FFIEC on a quarterly basis
CECL						Current Expected Credit Losses (ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments)
Chain Bridge, CBNA, the Company, we, us, our						Chain Bridge Bancorp, Inc., and its Subsidiaries
Charter						Our amended and restated certificate of incorporation, which became effective on October 3, 2024. The Charter authorizes the establishment of our Class A common stock and Class B common stock and effected the reclassification of each outstanding share of our common stock into 170 shares of Class B common stock
Class A common stock						Our Class A common stock, par value $0.01 per share
Class B common stock						Our Class B common stock, par value $0.01 per share
Common stock						Our Class A common stock and our Class B common stock
CRE						Commercial real estate
EPS						Earnings per share
EVE						Economic value of equity
FASB						Financial Accounting Standard Board
FDIC						Federal Deposit Insurance Corporation
Federal Reserve						Federal Reserve System, the Board of Governors of the Federal Reserve System, or the Federal Reserve Bank of Richmond, Virginia
FFIEC						Federal Financial Institutions Examination Council
Fitzgerald Family						Collectively, the lineal descendants of Gerald Francis Fitzgerald, deceased, and Marjorie Gosselin Fitzgerald, their spouses or surviving spouses, children, and grandchildren, and the spouses of their children and grandchildren. These persons include, but are not limited to, Peter Gosselin Fitzgerald, Gerald Francis Fitzgerald, Jr., James Gosselin Fitzgerald, Thomas Gosselin Fitzgerald, Julie Fitzgerald Schauer, Thomas Gosselin Fitzgerald, Jr., Andrew James Fitzgerald, and Lauren Fitzgerald Peterson
GAAP						Generally Accepted Accounting Principles
HTM						Held to Maturity
ICS®						IntraFi Cash Service®
IPO						Initial public offering
N/A						Not Applicable
NM						Not Meaningful (Comparisons of positive and negative values or to zero values are considered not meaningful)
OCC						Office of the Comptroller of the Currency
Old common stock						Our common stock, par value $1.00 per share, prior to the Reclassification

Table of Contents


Political organizations						Campaign committees; party committees; separate segregated funds (including trade association political action committees (“PACs”) and corporate PACs); non-connected committees (including independent expenditure-only committees (“Super PACs”), committees maintaining separate accounts for direct contributions and independent expenditures (“Hybrid PACs”), and committees other than authorized campaign committees, or those affiliated with such committees that are maintained or controlled by a candidate or federal officeholder (collectively, “Leadership PACs”)); and other tax-exempt organizations under Section 527 of the Internal Revenue Code
Pre-IPO investors						The holders of our shares of old common stock immediately prior to the Reclassification
Reclassification						The reclassification of each outstanding share of our old common stock into 170 shares of Class B common stock
Return on average risk-weighted assets						Return on average risk-weighted assets is calculated as net income divided by average risk-weighted assets. Average risk-weighted assets are calculated using the last five quarter ends.
RWA						Risk-weighted assets
SEC						United States Securities and Exchange Commission
Tier 1 capital ratio						Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach
Tier 1 leverage ratio						Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by quarterly adjusted average assets as defined under the U.S. Basel III Standardized approach
Total capital ratio						Total capital, which includes Common Equity Tier 1 capital, tier 1 capital, and allowance for credit losses and qualifying subordinated debt that qualifies as tier 2 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach
Transaction accounts						As defined in the instructions for the Call Report

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Unless we state otherwise or the context otherwise requires, “we,” “us,” “our,” “Chain Bridge,” “our Company,” and “the Company,” refer to Chain Bridge Bancorp, Inc., a Delaware corporation, and its consolidated subsidiary, Chain Bridge Bank, National Association. The “Bank” and “Chain Bridge Bank, N.A” refer to Chain Bridge Bank, National Association, a nationally chartered bank.

This Quarterly Report on Form 10-Q contains forward-looking statements, which involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategies, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. The forward-looking statements are contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements relating to:

•Changes in trade, monetary and fiscal policies of, and other activities undertaken by, governments, agencies, central banks and similar organizations, including the effects of United States federal government spending and tariffs;

•The level of, or changes in the level of, interest rates and inflation, including the effects on our net interest income, noninterest income, and the market value of our investment and loan portfolios;

•The level and composition of our deposits, including our ability to attract and retain, and the seasonality of, client deposits, including those in the ICS® network, as well as the amount and timing of deposit inflows and outflows and the concentration of our deposits;

•Our future net interest margin, net interest income, net income, and return on equity;

•Our political organization clients’ fundraising and disbursement activities;

•The level and composition of our loan portfolio, including our ability to maintain the credit quality of our loan portfolio;

•Current and future business, economic and market conditions in the United States generally or in the Washington, D.C. metropolitan area in particular;

•The effects of disruptions or instability in the financial system, including as a result of the failure of a financial institution or other participants in it, or geopolitical instability, including war, terrorist attacks, pandemics and man-made and natural disasters;

•The impact of, and changes, in applicable laws, regulations, regulatory expectations and accounting standards and policies;

•Our likelihood of success in, and the impact of, legal, regulatory or other actions, investigations or proceedings related to our business;

•Adverse publicity or reputational harm to us, our senior officers, directors, employees or clients;

•Our ability to effectively execute our growth plans or other initiatives;

•Changes in demand for our products and services;

•Our levels of, and access to, sources of liquidity and capital;

•The ability to attract and retain essential personnel or changes in our essential personnel;

•Our ability to effectively compete with banks, non-bank financial institutions, and financial technology firms and the effects of competition in the financial services industry on our business;

Table of Contents

•The effectiveness of our risk management and internal disclosure controls and procedures;

•Any failure or interruption of our information and technology systems, including any components provided by a third party;

•Our ability to identify and address cybersecurity threats and breaches;

•Our ability to keep pace with technological changes;

•Our ability to receive dividends from the Bank and satisfy our obligations as they become due;

•The incremental costs of operating as a public company;

•Our ability to meet our obligations as a public company, including our obligation under Section 404 of the Sarbanes-Oxley Act; and

•The effect of our dual-class structure and the concentrated ownership of our Class B common stock, including beneficial ownership of our shares by members of the Fitzgerald Family.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” included in our Annual Report on Form 10-K dated December 31, 2024 (our “Form 10-K”), as filed with the U.S. Securities and Exchange Commission in accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, on March 21, 2025. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q. And while we believe such information provides a reasonable basis for such statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance.

Table of Contents

Part I - Financial Information

Item 1. Financial Statements


			Page

Item 1 - Financial Statements			7

Consolidated Balance Sheets			8
Consolidated Statements of Income			9
Consolidated Statements of Comprehensive Income			10
Consolidated Statements of Changes in Stockholders' Equity			11
Consolidated Statements of Cash Flows			12
Notes to Consolidated Financial Statements (Unaudited)			13

Table of Contents


Chain Bridge Bancorp, Inc. and Subsidiary Consolidated Balance Sheets (Dollars in thousands, except per share data) (unaudited)
	June 30, 2025		December 31, 20241
Assets
Cash and due from banks	$	11,586	$	3,056
Interest-bearing deposits in other banks	365,678		407,683
Total cash and cash equivalents	377,264		410,739
Securities available for sale, at fair value	469,292		358,329
Securities held to maturity, at carrying value, net of allowance for credit losses of $144 and $202, respectively (fair value of $274,066 and $278,951, respectively)	289,205		300,451
Equity securities, at fair value	532		515
Restricted securities, at cost	3,383		2,886
Loans held for sale	—		316
Loans, net of allowance for credit losses of $4,193 and $4,514, respectively	283,620		308,773
Premises and equipment, net of accumulated depreciation of $7,523 and $7,285, respectively	11,858		9,587
Accrued interest receivable	5,357		4,231
Other assets	4,616		5,297
Total assets	$	1,445,127	$	1,401,124
Liabilities and stockholders’ equity
Liabilities
Deposits:
Noninterest-bearing	$	894,968	$	913,379
Savings, interest-bearing checking and money market accounts	376,961		324,845
Time, $250 and over	5,032		6,510
Other time	4,954		5,201
Total deposits	1,281,915		1,249,935
Accrued interest payable	82		46
Accrued expenses and other liabilities	6,182		6,897
Total liabilities	1,288,179		1,256,878
Commitments and contingencies
Stockholders’ equity
Preferred Stock:
No par value, 10,000,000 shares authorized, no shares issued and outstanding	—		—
Class A Common Stock:
$0.01 par value, 20,000,000 shares authorized, 3,143,846 and 3,049,447 shares issued and outstanding, respectively	31		30
Class B Common Stock:
$0.01 par value, 10,000,000 shares authorized, 3,417,971 and 3,512,370 shares issued and outstanding, respectively	34		35
Additional paid-in capital	74,785		74,785
Retained earnings	87,832		77,641
Accumulated other comprehensive loss	(5,734)		(8,245)
Total stockholders’ equity	156,948		144,246
Total liabilities and stockholders’ equity	$	1,445,127	$	1,401,124
See Notes to Consolidated Financial Statements.

1 Derived from audited consolidated financial statements.

Table of Contents

Chain Bridge Bancorp, Inc. and Subsidiary

Consolidated Statements of Income

(Dollars in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Interest and dividend income
Interest and fees on loans	$	3,356	$	3,391	$	6,945	$	6,671
Interest and dividends on securities, taxable	5,274		2,872		9,881		5,738
Interest on securities, tax-exempt	279		285		561		579
Interest on interest-bearing deposits in banks	3,856		4,943		10,119		8,202
Total interest and dividend income	12,765		11,491		27,506		21,190
Interest expense
Interest on deposits	971		815		1,864		1,623
Interest on short-term borrowings	—		102		—		201
Total interest expense	971		917		1,864		1,824
Net interest income	11,794		10,574		25,642		19,366
Provision for (recapture of) credit losses
Provision for (recapture of) loan credit losses	(283)		13		(321)		18
Provision for (recapture of) securities credit losses	(31)		(111)		(58)		(310)
Total provision for (recapture of) credit losses	(314)		(98)		(379)		(292)
Net interest income after provision for (recapture of) credit losses	12,108		10,672		26,021		19,658
Noninterest income
Trust and wealth management	305		239		575		426
Service charges on accounts	261		321		501		632
Deposit placement services	159		2,031		292		3,153
Gain on sale of mortgage loans	14		12		27		12
Other income	89		27		128		55
Total noninterest income	828		2,630		1,523		4,278
Noninterest expenses
Salaries and employee benefits	4,130		3,788		8,538		7,273
Professional services	801		483		1,694		948
Data processing and communication expenses	733		664		1,399		1,259
State franchise taxes	349		148		700		351
Occupancy and equipment expenses	258		237		509		512
FDIC and regulatory assessments	202		155		430		348
Insurance expenses	153		60		302		120
Directors fees	144		171		290		332
Other operating expenses	389		299		868		603
Total noninterest expenses	7,159		6,005		14,730		11,746
Net income before taxes	5,777		7,297		12,814		12,190
Income tax expense	1,193		1,492		2,623		2,468
Net income	$	4,584	$	5,805	$	10,191	$	9,722
Earnings per common share, basic and diluted2	$	0.70	$	1.27	$	1.55	$	2.13

See Notes to Consolidated Financial Statements.

2 Share information for the prior year periods gives effect to the Reclassification. During the periods presented, the number of basic and diluted weighted average shares are the same because there were no potentially dilutive instruments. Except in regard to voting and conversion rights, the rights of Class A Common Stock and Class B Common Stock are identical, and the classes rank equally and share ratably with regard to all other matters. Each share of Class B Common Stock is convertible at any time into one share of Class A Common Stock.

Table of Contents

Chain Bridge Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	4,584	$	5,805	$	10,191	$	9,722
Other comprehensive income:
Unrealized holding gains on securities available for sale	805		461		2,614		467
Income tax expense related to above unrealized gain item	(169)		(97)		(549)		(98)
Amortization of unrealized holding losses on securities available for sale, transferred to held to maturity	282		282		564		573
Income tax expense related to the above amortization	(59)		(59)		(118)		(120)


Other comprehensive income, net of tax	859		587		2,511		822
Comprehensive income	$	5,443	$	6,392	$	12,702	$	10,544
See Notes to Consolidated Financial Statements.

Table of Contents

Chain Bridge Bancorp, Inc. and Subsidiary

Consolidated Statements of Changes in Stockholders’ Equity

(Dollars in thousands)

(unaudited)


	Common Stock 3
	Class A Shares Outstanding		Class B Shares Outstanding		Total Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balance at December 31, 2023	$	—	$	46	$	46	$	38,264	$	56,692	$	(11,565)	$	83,437
Net income	—		—		—		—		3,917		—		3,917
Other comprehensive income	—		—		—		—		—		235		235
Issuance of common stock	—		—		—		12		—		—		12
Balance at March 31, 2024	$	—	$	46	$	46	$	38,276	$	60,609	$	(11,330)	$	87,601
Net income	—		—		—		—		5,805		—		5,805
Other comprehensive income	—		—		—		—		—		587		587
Balance at June 30, 2024	$	—	$	46	$	46	$	38,276	$	66,414	$	(10,743)	$	93,993

Balance at December 31, 2024	$	30	$	35	$	65	$	74,785	$	77,641	$	(8,245)	$	144,246
Conversion of Class B to Class A Common Stock	1		(1)		—		—		—		—		—
Net income	—		—		—		—		5,607		—		5,607
Other comprehensive income	—		—		—		—		—		1,652		1,652
Balance at March 31, 2025	$	31	$	34	$	65	$	74,785	$	83,248	$	(6,593)	$	151,505
Net income	—		—		—		—		4,584		—		4,584
Other comprehensive income	—		—		—		—		—		859		859
Balance at June 30, 2025	$	31	$	34	$	65	$	74,785	$	87,832	$	(5,734)	$	156,948

See Notes to Consolidated Financial Statements.

3 Share information presented prior to the Reclassification date of October 3, 2024 gives effect to the Reclassification, and attributes all earnings to Class B shares because no Class A shares were outstanding prior to the Reclassification.

Table of Contents

Chain Bridge Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

(Dollars in thousands)

(unaudited)


	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities
Net income	$	10,191	$	9,722
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	238		251
Premium amortization (discount accretion) on investment securities, net	(2,107)		327
Recapture of impairment loss on securities previously recognized in earnings	(1)		(2)
Fair value adjustment (gain) loss on equity security	(9)		7
Provision for (recapture of) loan credit losses	(321)		18
Recapture of securities credit losses	(58)		(310)
Gain on sale of mortgage loans	(27)		(12)
Origination of loans held for sale	(1,726)		(2,055)
Proceeds from sale of loans	2,068		1,477
Changes in assets and liabilities:
Net increase in accrued interest receivable and other assets	(1,110)		(94)
Net decrease in accrued interest payable, accrued expenses and other liabilities	(679)		(56)
Net cash provided by operating activities	6,459		9,273
Cash flows from investing activities
Securities available for sale:
Purchases of securities	(354,124)		(61,120)
Proceeds from calls, maturities, and paydowns	248,586		27,565
Securities held to maturity:
Proceeds from calls, maturities and paydowns	11,165		13
Purchase of restricted securities, net	(497)		(123)
Reinvestment of dividends on equity security	(8)		(7)
Net decrease (increase) in loans	25,474		(571)
Purchases of premises and equipment	(2,509)		(99)
Net cash used in investing activities	(71,913)		(34,342)
Cash flows from financing activities
Net increase in noninterest-bearing, savings, interest-bearing checking and money market deposits	33,704		195,986
Net decrease in time deposits	(1,725)		(4,671)
Increase in short-term borrowings	—		5,000
Proceeds from stock issuance	—		12
Net cash provided by financing activities	31,979		196,327
Net increase (decrease) in cash and cash equivalents	(33,475)		171,258
Cash and cash equivalents, beginning of period	410,739		316,767
Cash and cash equivalents, end of period	$	377,264	$	488,025
Supplemental disclosures of cash flow information
Cash payments for interest	$	1,828	$	1,794
Cash payments for taxes	$	2,500	$	543
Supplemental disclosures of noncash investing activities
Fair value adjustment for available for sale securities	$	2,614	$	467

See Notes to Consolidated Financial Statements.

Table of Contents

Chain Bridge Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

(unaudited)

Note 1. Organization and Summary of Significant Accounting Policies

Organization and Nature of Operations

Chain Bridge Bancorp, Inc. (the “Company”) is a Delaware corporation and a publicly traded bank holding company whose Class A common stock is listed on the New York Stock Exchange under the symbol “CBNA.” The Company serves as the registered bank holding company for Chain Bridge Bank, National Association (the “Bank”), its wholly-owned subsidiary. The Company does not own or control any other subsidiaries and conducts substantially all of its business through the Bank. Both the Company and Bank have their headquarters and sole executive office in McLean, Virginia.

The Bank is a national banking association chartered by the OCC under the National Bank Act. The Bank commenced operations on August 6, 2007, following receipt of its Charter No. 24755 from the OCC. The Bank is a member of the FDIC under Certificate No. 58595 and is also a Federal Reserve member bank, as required of national banks. In 2020, the Bank opened its Trust & Wealth department following authorization from the OCC to exercise full fiduciary powers in accordance with 12 U.S.C. § 92a.

The Bank uses a branchless operating model that integrates digital banking channels with in-person services at its headquarters in McLean, Virginia. It offers a broad range of commercial and personal banking services, including deposit accounts, multiple types of loan products, trust administration, wealth management, and asset custody. The Bank’s core deposit products include noninterest-bearing and interest-bearing checking accounts, as well as savings accounts. Its lending portfolio currently consists primarily of real-estate secured loans, with a significant portion being loans secured by first liens on single family residential properties in the Washington, D.C. area.

The Bank offers tailored financial solutions to individuals, families, businesses, non-profit organizations, and political organizations nationwide. The term “political organizations” refers to: campaign committees; party committees; separate segregated funds (including trade association political action committees (“PACs”) and corporate PACs); non-connected committees (including independent expenditure-only committees (“Super PACs”), committees maintaining separate accounts for direct contributions and independent expenditures (“Hybrid PACs”), and committees other than authorized campaign committees, or those affiliated with such committees that are maintained or controlled by a candidate or federal officeholder (collectively, “Leadership PACs”)); and other tax-exempt organizations under Section 527 of the Internal Revenue Code.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. The statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the consolidated financial statements, have been included. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024 and the accompanying notes thereto, included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 21, 2025 (“Form 10-K”).

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for any other interim period or for the full year.

Principles of Consolidation

The consolidated financial statements include the accounts of Chain Bridge Bancorp, Inc. and its wholly-owned subsidiary, Chain Bridge Bank, National Association. All significant intercompany balances and transactions have been eliminated in consolidation.

Table of Contents

Notes to Unaudited Consolidated Financial Statements

Reclassification

Certain amounts reported in the prior year may be reclassified to conform to the current year’s presentation. Certain expenses, previously included in the “marketing and business development costs” component of noninterest expense on the consolidated statements of income, have been reclassified to the “other operating expenses” component of noninterest expense to provide comparability between periods. None of those reclassifications had an impact on stockholders’ equity or net income. There were no other reclassifications for the periods reported.

Segment Reporting

The Company operates as a single reportable segment. The Company’s chief operating decision-makers, including senior management and the Board of Directors, evaluate financial performance and allocate resources on a consolidated basis. Although the Company offers a variety of financial products and services, including deposit accounts, loans, treasury management, and trust and wealth management services, management considers these activities to be components of a single business unit. Individual financial results of specific product lines or services are not separately reviewed by senior management for the purpose of making operating decisions. Accordingly, the Company has determined that it operates in one reportable segment under applicable accounting guidance.

Significant Accounting Policies

The accounting and reporting policies of the Company are in accordance with GAAP and conform to general practices within the banking industry. The Company’s significant accounting policies are described in Note 1 of the “Notes to the Consolidated Financial Statements” included in the audited consolidated financial statements for the fiscal year ended December 31, 2024, contained within the Company’s Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2024.

In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Estimates are evaluated on an ongoing basis. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses (“ACL”) on loans and fair value of investment securities.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements for the year ended December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The Company does not expect the adoption of ASU 2024-03 to have a material impact on its consolidated financial statements.

Table of Contents

Notes to Unaudited Consolidated Financial Statements

In January 2025, the FASB issued ASU 2025-01, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date.” ASU 2025-01 amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is permitted. The Company does not expect the adoption of ASU 2025-01 to have a material impact on its consolidated financial statements.

Other accounting standards that have been issued by the FASB or other standard setting bodies are not currently expected to have material effect on the Company’s financial position, results of operations or cash flows.

Note 2. Securities & Allowance for Securities Credit Losses

The Company invests in a variety of debt securities, principally obligations of the U.S. government and federal agencies, mortgage backed securities, state and municipal agencies, and corporations. As of June 30, 2025 and December 31, 2024, all debt securities were classified as held to maturity (“HTM”) or available for sale (“AFS”).

Management considers the appropriateness of the accounting treatment applied to the Company’s debt securities portfolio on an ongoing basis. During a prior year, certain AFS bonds were transferred to the HTM portfolio. Bonds selected for transfer included U.S. government and federal agencies, corporate bonds, and state and municipal bonds. The unrealized loss at the time of transfer is being amortized monthly over the remaining lives of the debt securities with an increase to the carrying value of the debt securities and a decrease to the related accumulated other comprehensive loss, which is included in the stockholders’ equity section of the consolidated balance sheets.

The following tables summarize the amortized cost, gross unrealized gains and losses, fair value and allowance for credit losses of AFS and HTM debt securities at June 30, 2025 and December 31, 2024 (dollars in thousands):


	June 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value		Allowance for Credit Losses
Securities available for sale:
U.S. government and federal agencies	$	317,522	$	291	$	(1,160)	$	316,653	$	—
Mortgage backed securities	6,814		1		(447)		6,368		—
Corporate bonds	49,467		147		(344)		49,270		—
State and municipal securities	99,869		63		(2,931)		97,001		—
Total securities available for sale	$	473,672	$	502	$	(4,882)	$	469,292	$	—
Securities held to maturity:
U.S. government and federal agencies	$	117,457	$	—	$	(6,368)	$	111,089	$	—
Mortgage backed securities	1,159		—		(26)		1,133		—
Corporate bonds	52,856		58		(946)		51,968		(114)
State and municipal securities	117,877		5		(8,006)		109,876		(30)
Total securities held to maturity	$	289,349	$	63	$	(15,346)	$	274,066	$	(144)
Total securities	$	763,021	$	565	$	(20,228)	$	743,358	$	(144)

Table of Contents

Notes to Unaudited Consolidated Financial Statements


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value		Allowance for Credit Losses
Securities available for sale:
U.S. government and federal agencies	$	207,935	$	29	$	(1,561)	$	206,403	$	—
Mortgage backed securities	7,976		1		(582)		7,395		—
Corporate bonds	44,707		20		(753)		43,974		—
State and municipal securities	104,705		37		(4,185)		100,557		—
Total securities available for sale	$	365,323	$	87	$	(7,081)	$	358,329	$	—
Securities held to maturity:
U.S. government and federal agencies	$	122,452	$	—	$	(9,181)	$	113,271	$	—
Mortgage backed securities	1,168		—		(51)		1,117		—
Corporate bonds	57,470		43		(1,698)		55,815		(171)
State and municipal securities	119,563		5		(10,820)		108,748		(31)
Total securities held to maturity	$	300,653	$	48	$	(21,750)	$	278,951	$	(202)
Total securities	$	665,976	$	135	$	(28,831)	$	637,280	$	(202)

There were no holdings of municipal or corporate debt securities that equaled or exceeded 10.0% of stockholders’ equity at June 30, 2025 and December 31, 2024.

There were no securities pledged to secure any borrowing source at June 30, 2025 and December 31, 2024.

Proceeds from calls, maturities, and paydowns of debt securities available for sale totaled $248.6 million for the six months ended June 30, 2025 and $27.6 million for the six months ended June 30, 2024. Proceeds from calls, maturities, and paydowns of debt securities held to maturity totaled $11.2 million and $13 thousand for the six month periods ended June 30, 2025 and 2024, respectively.

During the three and six months ended June 30, 2025, the Bank had no sales of AFS securities. One AFS security was disposed of through a tender offered by the security’s issuer. The proceeds received approximated the security’s amortized cost, and the transaction did not result in a material gain or loss. During the six months ended June 30, 2024, the Bank sold an AFS bond that was charged off during a prior year for $210 thousand. The proceeds were recorded as a recapture of previously recorded credit losses. This sale did not result in a realized gain or loss on sale of securities.

Management classifies bonds as HTM only when the Company has the ability and intent to hold the bond to maturity, and certain sales or transfers of HTM could call into question management’s ability or intent to hold the remaining HTM bond portfolio to maturity, thereby “tainting” the entire portfolio and triggering a reclassification of the entire portfolio to available for sale. However, there are limited situations, including evidence of deterioration in the issuer’s creditworthiness, in which the Company could sell an HTM bond without tainting the remaining HTM portfolio. During the first six months of 2025 and 2024, the Company did not sell any HTM bonds.

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2025 is as follows (dollars in thousands):


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	243,487	$	243,147	$	62,862	$	62,097
After one year through five years	208,049		205,720		159,412		151,868
After five years through ten years	17,584		16,300		62,804		56,452
Over ten years	4,552		4,125		4,271		3,649
Total	$	473,672	$	469,292	$	289,349	$	274,066

Expected maturities may differ from contractual maturities if issuers have the right to call or repay obligations with or without prepayment penalties.

Table of Contents

Notes to Unaudited Consolidated Financial Statements

The following table shows the gross unrealized losses and fair value of the Company’s AFS debt securities with unrealized losses aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024 (dollars in thousands):


	June 30, 2025
	Less Than Twelve Months				Over Twelve Months				Total
	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
Securities available for sale:
U.S. government and federal agencies	$	(87)	$	176,314	$	(1,073)	$	18,837	$	(1,160)	$	195,151
Mortgage backed securities	—		—		(447)		6,313		(447)		6,313
Corporate bonds	(22)		6,445		(322)		17,960		(344)		24,405
State and municipal securities	(26)		7,039		(2,905)		67,218		(2,931)		74,257
Total securities available for sale	$	(135)	$	189,798	$	(4,747)	$	110,328	$	(4,882)	$	300,126


	December 31, 2024
	Less Than Twelve Months				Over Twelve Months				Total
	Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value
Securities available for sale:
U.S. government and federal agencies	$	(29)	$	141,169	$	(1,532)	$	22,348	$	(1,561)	$	163,517
Mortgage backed securities	—		26		(582)		7,338		(582)		7,364
Corporate bonds	(90)		6,365		(663)		30,677		(753)		37,042
State and municipal securities	(77)		9,121		(4,108)		79,790		(4,185)		88,911
Total securities available for sale	$	(196)	$	156,681	$	(6,885)	$	140,153	$	(7,081)	$	296,834

In the AFS portfolio at June 30, 2025, 40 out of 60 debt securities of the U.S. government and federal agencies, 10 out of 16 mortgage backed securities, 52 out of 102 corporate bonds, and 229 out of 290 state and municipal securities were in an unrealized loss position. All of the Company’s investment portfolio was evaluated under the monitoring process described in Note 1 of the audited consolidated financial statements for the year ended December 31, 2024, contained within the Form 10-K, and all investments were deemed investment grade. All of the unrealized losses are attributed to changes in market interest rates, and are not a result of deterioration of creditworthiness among any of the issuers.

Of the total AFS and HTM portfolio at June 30, 2025 and December 31, 2024, 696 and 776 debt securities had unrealized losses with aggregate impairment of 2.7% and 4.3%, respectively, of the Company’s amortized cost basis. These unrealized losses related principally to interest rate movements and not the creditworthiness of the issuer. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Credit loss allowances for the AFS and HTM portfolios are described in the following sections.

Allowance for Credit Losses—AFS Securities

Management evaluates debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. This analysis occurs on a quarterly basis. Consideration is given to the extent to which fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for full recovery of its amortized cost. If the assessment reveals that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of future cash flows expected to be collected is less than the amortized cost, an allowance for the credit loss is recorded. The loss is limited by the amount that the amortized cost exceeds fair value.

As of the reporting date, the Company did not intend to sell any of the AFS debt securities, did not expect to be required to sell these debt securities, and expected to recover the entire amortized cost basis of all of the debt securities.

Table of Contents

Notes to Unaudited Consolidated Financial Statements

The Company did not record an ACL on the AFS debt securities at June 30, 2025 and December 31, 2024. The Company has evaluated these debt securities for credit-related impairment at the reporting date and concluded that no impairment existed. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, industry analysts’ reports, and correlations between fair value changes and interest rate changes among instruments that are not credit sensitive. All AFS debt securities were current with no debt securities past due or on non-accrual as of June 30, 2025 and December 31, 2024. The Company considers the unrealized losses on the debt securities as of June 30, 2025 and December 31, 2024 to be related to fluctuations in market conditions, primarily interest rates, and is not reflective of deterioration in credit.

At June 30, 2025, there was no allowance for credit losses, and there were no provisions, write offs, or recoveries on AFS debt securities recorded during the six months ended June 30, 2025.

The table below presents a rollforward by major security type of the allowance for credit losses on AFS debt securities for the six months ended June 30, 2024 (dollars in thousands):


	June 30, 2024
For the six months ended	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total AFS Securities
Allowance for credit losses:
Beginning balance, December 31, 2023	$	—	$	—	$	—	$	—	$	—
Provision for (recapture of) credit losses	—		—		(210)		—		(210)
Write offs charged against the allowance	—		—		—		—		—
Recoveries of amounts previously written off	—		—		210		—		210
Ending balance, June 30, 2024	$	—	$	—	$	—	$	—	$	—

At June 30, 2024, there was no allowance for credit losses on AFS debt securities recorded. During the six months ended June 30, 2024, the Bank received proceeds totaling $210 thousand for a bond that was fully charged off during 2023, and recorded a recovery of the credit loss.

Credit Quality Indicators and Allowance for Credit Losses - HTM Securities

The Company evaluates the credit risk of its HTM debt securities on a quarterly basis. The Company estimates expected credit losses on HTM debt securities using an instrument-level process described in Note 1 of the audited consolidated financial statements for the year ended December 31, 2024. The primary indicators of credit quality for the Company’s HTM portfolio are security type, time remaining to maturity, and credit rating. Credit ratings may be influenced by a number of factors including obligor cash flows, geography, seniority and others. The HTM portfolio includes debt securities issued by the U.S. Treasury and agencies of the federal government, and mortgage-backed securities issued by government agencies. These types of investments carry implicit or explicit backing of the U.S. Treasury, and therefore are deemed to carry no credit risk for purposes of the ACL evaluation.

The following table presents the amortized cost of HTM debt securities as of June 30, 2025 and December 31, 2024 by security type and credit rating (dollars in thousands):


	June 30, 2025
	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
AAA / AA / A	$	117,457	$	1,159	$	18,981	$	117,877	$	255,474
BBB / BB / B	—		—		33,875		—		33,875
Total	$	117,457	$	1,159	$	52,856	$	117,877	$	289,349

Table of Contents

Notes to Unaudited Consolidated Financial Statements


	December 31, 2024
	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
AAA / AA / A	$	122,452	$	1,168	$	18,046	$	119,563	$	261,229
BBB / BB / B	—		—		39,424		—		39,424
Total	$	122,452	$	1,168	$	57,470	$	119,563	$	300,653

The following tables summarize the change in the allowance for credit losses on HTM debt securities for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):


	June 30, 2025
For the three months ended	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
Allowance for credit losses:
Beginning balance, March 31, 2025	$	—	$	—	$	145	$	30	$	175
Provision for (recapture of) credit losses	—		—		(31)		—		(31)
Write offs charged against the allowance	—		—		—		—		—
Recoveries of amounts previously written off	—		—		—		—		—
Ending balance, June 30, 2025	$	—	$	—	$	114	$	30	$	144


	June 30, 2024
For the three months ended	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
Allowance for credit losses:
Beginning balance, March 31, 2024	$	—	$	—	$	325	$	34	$	359
Provision for (recapture of) credit losses	—		—		(110)		(1)		(111)
Write offs charged against the allowance	—		—		—		—		—
Recoveries of amounts previously written off	—		—		—		—		—
Ending balance, June 30, 2024	$	—	$	—	$	215	$	33	$	248


	June 30, 2025
For the six months ended	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
Allowance for credit losses:
Beginning balance, December 31, 2024	$	—	$	—	$	171	$	31	$	202
Provision for (recapture of) credit losses	—		—		(57)		(1)		(58)
Write offs charged against the allowance	—		—		—		—		—
Recoveries of amounts previously written off	—		—		—		—		—
Ending balance, June 30, 2025	$	—	$	—	$	114	$	30	$	144

Table of Contents

Notes to Unaudited Consolidated Financial Statements


	June 30, 2024
For the six months ended	U.S. Government and Federal Agencies		Mortgage Backed Securities		Corporate Bonds		State and Municipal Securities		Total HTM Securities
Allowance for credit losses:
Beginning balance, December 31, 2023	$	—	$	—	$	322	$	26	$	348
Provision for credit losses	—		—		(107)		7		(100)
Write offs charged against the allowance	—		—		—		—		—
Recoveries of amounts previously written off	—		—		—		—		—
Ending balance, June 30, 2024	$	—	$	—	$	215	$	33	$	248

At June 30, 2025 and December 31, 2024, the Company had no HTM debt securities that were 30 days or more past due as to principal and interest payments. The Company had no debt securities held to maturity classified as non-accrual as of June 30, 2025 and December 31, 2024.

Equity Securities

The Company reported a fair value gain of $2 thousand in its equity security holding during the three month period ended June 30, 2025 and fair value loss of $3 thousand for the three month period ended June 30, 2024. The Company reported a fair value gain of $9 thousand in its equity security holding during the six month period ended June 30, 2025 and fair value loss of $7 thousand for the six month period ended June 30, 2024. The gains and losses were reflected in the “other income” component of noninterest income on the consolidated statements of income.

Note 3. Loans and Allowance for Loan Credit Losses

A summary of the composition of the loan portfolio at June 30, 2025 and December 31, 2024 is presented below (dollars in thousands):


	June 30, 2025		December 31, 2024
Commercial real estate	$	52,540	$	53,480
Commercial	5,023		27,883
Residential real estate closed-end	210,426		210,730
Other consumer loans	19,824		21,194
	287,813		313,287
Less allowance for credit losses	(4,193)		(4,514)
Loans, net	$	283,620	$	308,773

Overdrafts totaling $20 thousand and $27 thousand at June 30, 2025 and December 31, 2024, respectively, were reclassified from deposits to loans.

The totals above include deferred costs (net of deferred fees) of $511 thousand at June 30, 2025 and $519 thousand at December 31, 2024.

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Table of Contents

Notes to Unaudited Consolidated Financial Statements


	June 30, 2025
	Commercial Real Estate		Commercial		Residential Real Estate Closed-End		Other Consumer Loans		Total
For the three months ended
Allowance for credit losses:
Beginning balance, March 31, 2025	$	1,304	$	259	$	2,675	$	238	$	4,476
Provision for (recapture of) credit losses	3		(171)		(115)		—		(283)
Loans charged-off	—		—		—		—		—
Recoveries collected	—		—		—		—		—
Ending balance, June 30, 2025	$	1,307	$	88	$	2,560	$	238	$	4,193


	June 30, 2024
	Commercial Real Estate		Commercial		Residential Real Estate Closed-End		Other Consumer Loans		Total
For the three months ended
Allowance for credit losses:
Beginning balance, March 31, 2024	$	1,217	$	177	$	2,681	$	249	$	4,324
Provision for (recapture of) credit losses	(81)		(10)		75		29		13
Loans charged-off	—		—		—		—		—
Recoveries collected	—		—		—		—		—
Ending balance, June 30, 2024	$	1,136	$	167	$	2,756	$	278	$	4,337


	June 30, 2025
	Commercial Real Estate		Commercial		Residential Real Estate Closed-End		Other Consumer Loans		Total
For the six months ended
Allowance for credit losses:
Beginning balance, December 31, 2024	$	1,140	$	483	$	2,644	$	247	$	4,514
Provision for (recapture of) credit losses	167		(395)		(84)		(9)		(321)
Loans charged-off	—		—		—		—		—
Recoveries collected	—		—		—		—		—
Ending balance, June 30, 2025	$	1,307	$	88	$	2,560	$	238	$	4,193


	June 30, 2024
	Commercial Real Estate		Commercial		Residential Real Estate Closed-End		Other Consumer Loans		Total
For the six months ended
Allowance for credit losses:
Beginning balance, December 31, 2023	$	1,233	$	189	$	2,668	$	229	$	4,319
Provision for (recapture of) credit losses	(97)		(22)		88		49		18
Loans charged-off	—		—		—		—		—
Recoveries collected	—		—		—		—		—
Ending balance, June 30, 2024	$	1,136	$	167	$	2,756	$	278	$	4,337

There were no nonaccrual loans, loans 90 days past due and still accruing, or past due for 30 or more days as of June 30, 2025 and December 31, 2024.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company’s loan risk grading system and ongoing monitoring

Table of Contents

Notes to Unaudited Consolidated Financial Statements

process is discussed in Note 1 of the audited consolidated financial statements for the year ended December 31, 2024. The following table presents the outstanding balance of the loan portfolio, by year of origination, loan classification, and credit quality, as of June 30, 2025 and December 31, 2024 (dollars in thousands):


June 30, 2025	Term Loans by Year of Origination												Revolving Loans		Revolving to Term Loans		Total
	2025		2024		2023		2022		2021		Prior
Commercial real estate
Pass	$	4,491	$	2,840	$	2,503	$	5,768	$	7,044	$	22,801	$	—	$	—	$	45,447
Special Mention	—		—		—		—		1,523		2,124		—		—		3,647
Substandard	—		—		—		1,652		—		1,794		—		—		3,446
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	4,491	$	2,840	$	2,503	$	7,420	$	8,567	$	26,719	$	—	$	—	$	52,540
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	234	$	361	$	—	$	540	$	7	$	1,041	$	2,840	$	—	$	5,023
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	234	$	361	$	—	$	540	$	7	$	1,041	$	2,840	$	—	$	5,023
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate closed-end
Pass	$	7,445	$	15,741	$	16,007	$	45,897	$	41,718	$	83,618	$	—	$	—	$	210,426
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	7,445	$	15,741	$	16,007	$	45,897	$	41,718	$	83,618	$	—	$	—	$	210,426
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other consumer loans
Pass	$	—	$	14	$	—	$	—	$	13	$	—	$	17,974	$	1,823	$	19,824
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	—	$	14	$	—	$	—	$	13	$	—	$	17,974	$	1,823	$	19,824
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Portfolio Loans
Pass	$	12,170	$	18,956	$	18,510	$	52,205	$	48,782	$	107,460	$	20,814	$	1,823	$	280,720
Special Mention	—		—		—		—		1,523		2,124		—		—		3,647
Substandard	—		—		—		1,652		—		1,794		—		—		3,446
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total Portfolio Loans	$	12,170	$	18,956	$	18,510	$	53,857	$	50,305	$	111,378	$	20,814	$	1,823	$	287,813
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Table of Contents

Notes to Unaudited Consolidated Financial Statements


December 31, 2024	Term Loans by Year of Origination												Revolving Loans		Revolving to Term Loans		Total
	2024		2023		2022		2021		2020		Prior
Commercial real estate
Pass	$	2,873	$	2,526	$	6,461	$	7,250	$	3,424	$	25,849	$	—	$	—	$	48,383
Special Mention	—		—		—		1,576		—		—		—		—		1,576
Substandard	—		—		1,676		—		—		1,845		—		—		3,521
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	2,873	$	2,526	$	8,137	$	8,826	$	3,424	$	27,694	$	—	$	—	$	53,480
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial
Pass	$	403	$	—	$	552	$	9	$	—	$	1,147	$	25,772	$	—	$	27,883
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	403	$	—	$	552	$	9	$	—	$	1,147	$	25,772	$	—	$	27,883
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate closed-end
Pass	$	15,969	$	17,834	$	47,200	$	43,125	$	23,145	$	63,222	$	—	$	—	$	210,495
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		236		—		—		236
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	15,969	$	17,834	$	47,200	$	43,125	$	23,145	$	63,458	$	—	$	—	$	210,730
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other consumer loans
Pass	$	17	$	—	$	—	$	18	$	—	$	—	$	19,336	$	1,823	$	21,194
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total	$	17	$	—	$	—	$	18	$	—	$	—	$	19,336	$	1,823	$	21,194
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Portfolio Loans
Pass	$	19,262	$	20,360	$	54,213	$	50,402	$	26,569	$	90,218	$	45,108	$	1,823	$	307,955
Special Mention	—		—		—		1,576		—		—		—		—		1,576
Substandard	—		—		1,676		—		—		2,081		—		—		3,757
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total Portfolio Loans	$	19,262	$	20,360	$	55,889	$	51,978	$	26,569	$	92,298	$	45,108	$	1,823	$	313,287
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Collateral Dependent Loans

FASB ASC Topic 326 describes a collateral-dependent asset as a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower, based on management’s assessment, is experiencing financial difficulty as of the reporting date. Whether the underlying collateral is expected to be

Table of Contents

Notes to Unaudited Consolidated Financial Statements

a substantial source of repayment for an asset depends on the availability, reliability, and capacity of sources other than the collateral to repay the debt. Collateral-dependent loans are individually evaluated for expected credit losses as of the reporting date, and they are removed from their respective pools of collectively evaluated assets. Expected credit losses for these types of assets are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs. There were no collateral-dependent loans that were individually evaluated for purposes of determining the allowance for credit losses under FASB ASC Topic 326 as of June 30, 2025 and December 31, 2024.

Modifications to Borrowers Experiencing Financial Difficulty

The Company may modify loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. There were no loan modifications provided to borrowers exhibiting financial distress during the six months ended June 30, 2025 and 2024, and there were no such prior modifications in existence during the periods reported. During the reported periods, there were no payment defaults from any such loans during the twelve months preceding the modification because no such modifications were in existence during the periods.

Related Party Loan Transactions

Officers, directors and their affiliates had loans outstanding with the Company of $10.0 million and $8.6 million as of June 30, 2025 and December 31, 2024, respectively. The increase in loans outstanding reflects the origination of a new loan during the period to a director with pre-existing lending relationships with the Company. These transactions occurred in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with unrelated persons.

Note 4. Deposits

The Bank held no deposits classified as brokered as of June 30, 2025 and December 31, 2024. To achieve full insurance from the FDIC, some of the Bank’s depositors have enrolled in the ICS® program offered by the Bank through the IntraFi® network. When accounts are enrolled in this service, the Bank must elect, for each account, whether it will receive a reciprocal deposit balance or sell the deposit balance. Reciprocal deposits through ICS® held on the consolidated balance sheets were $170.7 million and $130.3 million as of June 30, 2025 and December 31, 2024, respectively. Total ICS® One-Way Sell® deposits of $121.2 million and $63.3 million as of June 30, 2025, and December 31, 2024, respectively, were sold to the network and excluded from the Company’s consolidated balance sheets. The Company receives fee income for deposits that are sold, which is reported under deposit placement services income on the consolidated statements of income.

As of June 30, 2025, there were two clients with an individual deposit balance exceeding 5.0% of total deposits. The total deposit balance related to these clients was $136.2 million or 10.6% of total deposits. As of December 31, 2024, there were two clients whose individual deposit balances exceeded 5.0% of total deposits. The total deposit balance related to these clients was $202.6 million or 16.2% of total deposits.

Note 5. Borrowings

Available Lines of Credit

The Bank maintains eligibility for a secured line of credit with the Federal Home Loan Bank (“FHLB”). To establish credit availability, the Bank will typically pledge eligible 1-4 family residential real estate loans from its loan portfolio as collateral. At June 30, 2025 and December 31, 2024, the Bank had not pledged any collateral to the FHLB. Consequently, no credit availability was established, and no outstanding borrowings were recorded.

The Bank also maintains eligibility for a secured line of credit with the Federal Reserve Bank of Richmond (“FRB”), and will typically pledge investment securities to establish credit availability. At June 30, 2025 and December 31, 2024, the Bank had not pledged any collateral to the FRB. Consequently, no credit availability was established, and no outstanding borrowings were recorded.

Short-Term Borrowing Facilities

As of June 30, 2025 and December 31, 2024, the Company had no outstanding short-term borrowings. The Bank maintains access to unsecured federal funds purchase lines of credit with:

•Pacific Coast Bankers’ Bank: $50.0 million, maturing June 30, 2026

•First National Bankers’ Bank: $10.0 million, maturing June 30, 2026, and

Table of Contents

Notes to Unaudited Consolidated Financial Statements

•Community Bankers’ Bank: $8.0 million, maturing March 12, 2026.

These federal funds lines renew annually, and balances may remain outstanding for periods ranging from 10 to 90 consecutive days. The use of these credit facilities is contingent upon compliance with specified financial conditions and covenants.

As of June 30, 2025 and December 31, 2024, the Bank had no outstanding balances under these federal funds purchase lines.

Note 6. Fair Value Measurements

Determination of Fair Value

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value measurements and disclosure topic specifies a hierarchy of valuation techniques based on whether the inputs to these valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.

Fair Value Hierarchy

U.S. GAAP establishes a fair value hierarchy which categorizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are:

Level 1 - Valuation is based on quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

An asset or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements:

Securities Available for Sale & Equity Securities

Debt securities available for sale and equity securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity then the security would fall to the lowest level of the hierarchy (Level 3).

The Company’s investment portfolio is valued using fair value measurements that are considered to be Level 1 or Level 2 but may also use Level 3 measurements if required by the composition of the portfolio. The Bank has contracted with a securities portfolio accounting service provider for valuation of its securities portfolio. Most security types are priced using the securities accounting provider’s internally developed pricing software which appraises securities from an online real-time database. Subscription pricing services such as ICE Data Services and Bloomberg Valuation Services may be used to supplement the internal pricing system for security types where the underlying collateral, cash flow projections or trade data is not readily available. If Level 1 or Level 2 inputs are not available, the software may rely upon a discounted cash

Table of Contents

Notes to Unaudited Consolidated Financial Statements

flow analysis based on the net present value of a security’s projected cash flow to arrive at fair market value. Valuations for direct obligations of the U.S. Treasury, exchange listed stock and preferred stock are obtained from online real-time databases.

The securities accounting service provider utilizes proprietary valuation matrices for valuing all municipal securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance and rating to incorporate additional spreads to the industry benchmark curves.

The following table presents the balances of financial assets measured at fair value on a recurring basis (dollars in thousands):


			Fair Value Measurements Using
Financial Assets	Balances		Level 1		Level 2		Level 3
As of June 30, 2025:
Available for sale securities:
U.S. government and federal agencies	$	316,653	$	314,682	$	1,971	$	—
Mortgage backed securities	6,368		—		6,368		—
Corporate bonds	49,270		488		48,782		—
State and municipal securities	97,001		—		97,001		—
Total available for sale securities	$	469,292	$	315,170	$	154,122	$	—
Equity securities	532		532		—		—
Total	$	469,824	$	315,702	$	154,122	$	—
As of December 31, 2024:
Available for sale securities:
U.S. government and federal agencies	$	206,403	$	204,452	$	1,951	$	—
Mortgage backed securities	7,395		—		7,395		—
Corporate bonds	43,974		480		43,494		—
State and municipal securities	100,557		—		100,557		—
Total available for sale securities	$	358,329	$	204,932	$	153,397	$	—
Equity securities	515		515		—		—
Total	$	358,844	$	205,447	$	153,397	$	—

Assets Measured at Fair Value on a Non-recurring Basis

Certain assets are measured at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

Collateral Dependent Loans

Individually evaluated loans are analyzed to determine whether they are collateral dependent. Any individually evaluated loans, which are deemed to be collateral dependent, with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the consolidated statements of income.

The measurement of loss associated with collateral dependent loans can be based on either the observable market price of the loan or fair value of the collateral. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or if an appraisal of the real estate property using an income approach or is over two years old, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair

Table of Contents

Notes to Unaudited Consolidated Financial Statements

value adjustments are recorded in the period incurred as a provision for loan credit losses on the consolidated statements of income. There were no collateral dependent loans, and therefore no recorded reserve as of June 30, 2025 and December 31, 2024.

Other Real Estate Owned

Other real estate owned (“OREO”) is measured at fair value less costs to sell. Valuation of OREO is determined using current appraisals from independent parties, a Level 2 input. If current appraisals cannot be obtained, or if declines in value are identified after a recent appraisal is received, appraisal values may be discounted, resulting in a Level 3 estimate. If the Company markets the property with a realtor, estimated selling costs reduce the fair value, resulting in a valuation based on Level 3 inputs. Fair value adjustments are recorded in the period incurred and expensed against current earnings. The Bank held no OREO at June 30, 2025 and December 31, 2024.

Loans Held for Sale

Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of 1-4 family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, the Company records any fair value adjustments on a nonrecurring basis. No nonrecurring fair value adjustments were recorded on loans held for sale at June 30, 2025 or December 31, 2024.

There were no assets measured at fair value on a nonrecurring basis at June 30, 2025 and December 31, 2024.

Fair Value of Financial Instruments

The following tables present the carrying value and estimated fair value including the level within the fair value hierarchy of the Company’s financial instruments as of June 30, 2025 and December 31, 2024 (dollars in thousands):


	Carrying Amount		Fair Value Measurements Using						Total Fair Value
			Level 1		Level 2		Level 3
As of June 30, 2025:
Financial assets:
Cash and due from banks	$	377,264	$	377,264	$	—	$	—	$	377,264
Securities available for sale	469,292		315,170		154,122		—		469,292
Securities held to maturity, net	289,205		105,304		168,762		—		274,066
Equity securities	532		532		—		—		532
Restricted securities	3,383		—		3,383		—		3,383
Loans, net	283,620		—		—		277,696		277,696
Accrued interest receivable	5,357		—		5,357		—		5,357
Financial liabilities:
Time deposits	9,986		—		—		9,951		9,951
Accrued interest payable	82		—		82		—		82

Table of Contents

Notes to Unaudited Consolidated Financial Statements


	Carrying Amount		Fair Value Measurements Using						Total Fair Value
			Level 1		Level 2		Level 3
As of December 31, 2024:
Financial assets:
Cash and due from banks	$	410,739	$	410,739	$	—	$	—	$	410,739
Securities available for sale	358,329		204,932		153,397		—		358,329
Securities held to maturity, net	300,451		107,593		171,358		—		278,951
Equity securities	515		515		—		—		515
Restricted securities	2,886		—		2,886		—		2,886
Loans held for sale	316		—		316		—		316
Loans, net	308,773		—		—		294,316		294,316
Accrued interest receivable	4,231		—		4,231		—		4,231
Financial liabilities:
Time deposits	11,711		—		—		11,650		11,650
Accrued interest payable	46		—		46		—		46

Note 7. Accumulated Other Comprehensive Loss

The following table presents the changes in each component in accumulated other comprehensive loss, net of tax for the six months ended June 30, 2025 and 2024 (dollars in thousands):


	Unrealized Loss on Available for Sale Securities		Unrealized Loss on Securities Transferred from Available for Sale to Held to Maturity		Accumulated Other Comprehensive Loss
Balance at December 31, 2023	$	(7,931)	$	(3,634)	$	(11,565)
Unrealized holding gains, net of tax of $98	369		—		369
Amortization of unrealized holding losses, net of tax of $120	—		453		453
Balance at June 30, 2024	$	(7,562)	$	(3,181)	$	(10,743)
Balance at December 31, 2024	$	(5,525)	$	(2,720)	$	(8,245)
Unrealized holding gains, net of tax of $549	2,065		—		2,065
Amortization of unrealized holding losses, net of tax of $118	—		446		446
Balance at June 30, 2025	$	(3,460)	$	(2,274)	$	(5,734)

There were no amounts reclassified out of accumulated other comprehensive loss for the six months ended June 30, 2025 and 2024.

Note 8. Earnings Per Share

The Company’s stock is comprised of two classes: Class A Common Stock and Class B Common Stock. Except in regard to voting and conversion rights, the rights of Class A Common Stock and Class B Common Stock are identical, and the classes rank equally and share ratably with regard to all other matters. Each share of Class B Common Stock is convertible at any time into one share of Class A Common Stock. Because Class A Common Stock and Class B Common Stock share in earnings equally, any potential conversions of Class B Common Stock to Class A Common Stock do not have a dilutive impact.

On October 3, 2024, 26,876 existing shares of Old Common Stock held by the company’s pre-IPO investors were reclassified into 4,568,920 shares of Class B Common Stock. In connection with the IPO, the Company issued 1,850,000

Table of Contents

Notes to Unaudited Consolidated Financial Statements

shares of Class A Common Stock on October 7, 2024 and 142,897 shares of Class A Common Stock on November 1, 2024. Share information for historical periods gives effect to the Reclassification. All earnings are attributed to Class B shares for the historical periods because no Class A shares were outstanding during the historical periods.

When declared by the Company’s Board of Directors, holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally and ratably on a per-share basis. The Company did not pay dividends to any stockholder during the six-month periods ended June 30, 2025 and 2024.

Under the two-class method, earnings available to common stockholders are allocated ratably on a per-share basis between Class A Common Stock and Class B Common Stock. The table below provides a reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share computations (dollars in thousands, except per share data). The number of basic and diluted shares are the same because there are no potentially dilutive instruments.


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2025		2024		2025		2024

Net Income	$	4,584	$	5,805	$	10,191	$	9,722
Dividends declared on common stock
Class A Common Stock	—		—		—		—
Class B Common Stock	—		—		—		—
Undistributed net income for basic and diluted earnings per share	$	4,584	$	5,805	$	10,191	$	9,722

Weighted average shares outstanding
Class A Common Stock	3,125,918		—		3,107,466		—
Class B Common Stock	3,435,899		4,568,920		3,454,351		4,568,791
Weighted average shares outstanding, basic and dilutive	6,561,817		4,568,920		6,561,817		4,568,791


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2025		2024		2025		2024
Earnings per common share, basic and diluted
Class A Common Stock
Per share dividends distributed	$	—	$	—	$	—	$	—
Undistributed earnings per share	0.70		—		1.55		—
Total basic and diluted earnings per share - Class A Common Stock	$	0.70	$	—	$	1.55	$	—

Class B Common Stock
Per share dividends distributed	$	—	$	—	$	—	$	—
Undistributed earnings per share	0.70		1.27		1.55		2.13
Total basic and diluted earnings per share - Class B Common Stock	$	0.70	$	1.27	$	1.55	$	2.13

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 31, 2024 included in our Form 10-K. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from our expectations. Factors that could cause or contribute to such differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, particularly in the section entitled “Cautionary Note Regarding Forward-Looking Statements” as well as the section entitled “Risk Factors” in our Form 10-K. We assume no obligation to update any of these forward-looking statements except to the extent required by law.

The following discussion relates to our historical results, on a consolidated basis. Because we conduct all our material business operations through our wholly owned subsidiary, Chain Bridge Bank, N.A., the discussion and analysis primarily focus on activities conducted at the subsidiary level.

Introduction

Chain Bridge Bancorp, Inc. (the “Company”) is a Delaware-chartered bank holding company and a publicly traded bank holding company whose Class A common stock is listed on the New York Stock Exchange under the symbol “CBNA.” The Company was incorporated on May 26, 2006, and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Company serves as the registered bank holding company for Chain Bridge Bank, National Association (the “Bank”), its wholly-owned subsidiary. The Company does not own or control any other subsidiaries and conducts substantially all of its business through the Bank.

We offer a broad range of commercial and personal banking services, including deposit accounts, multiple types of loan products, trusts administration, wealth management, and asset custody.

Our mission is to deliver exceptional banking and trust services nationwide, blending financial strength, personalized service, and advanced technology to offer tailored solutions to businesses, non-profit organizations, political organizations, individuals, and families. We aspire to grow responsibly by adapting our personalized service and advanced technology solutions to our clients’ evolving needs while emphasizing liquidity, asset quality, and financial strength. We aim to be recognized for our “Strength, Service, Solutions: Your Bridge to Better Banking Nationwide.”

Reclassification

In connection with the IPO, on October 3, 2024, the Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which established two new classes of common stock, Class A common stock, par value $0.01 per share (“Class A Common Stock”) and Class B common stock, par value $0.01 per share (“Class B Common Stock”), and reclassified and converted each outstanding share of the Company’s existing common stock, par value $1.00 per share (“Old Common Stock”), into 170 shares of Class B Common Stock (the “Reclassification”). Share information presented prior to the Reclassification date of October 3, 2024 gives effect to the Reclassification and attributes all earnings to Class B shares because no Class A shares were outstanding prior to the Reclassification.

Six Months Ended June 30, 2025 Highlights

Highlights of our results of operations and financial condition as of and for the six months ended June 30, 2025 are provided below.

Financial Performance

•Consolidated net income was $10.2 million for the six months ended June 30, 2025, compared to $9.7 million for the six months ended June 30, 2024. Earnings per share for the six months ended June 30, 2025 were $1.55, compared to $2.13 for the six months ended June 30, 2024.4

4 For historical periods presented, all earnings are attributed to Class B shares because no Class A shares were outstanding.

Table of Contents

•Net interest income, before provision for, or recapture of, credit losses, was $25.6 million for the six months ended June 30, 2025, compared to $19.4 million for the six months ended June 30, 2024. Net interest income, after provision for, or recapture of, credit losses was $26.0 million for the six months ended June 30, 2025, compared to $19.7 million for the six months ended June 30, 2024.

•Return on average equity was 13.61% for the six months ended June 30, 2025, compared to 22.20% for the six months ended June 30, 2024.

•Return on average assets for the six months ended June 30, 2025 was 1.37%, compared to 1.64% for the six months ended June 30, 2024.

•Return on average risk-weighted assets was 5.28% for the six months ended June 30, 2025, compared to 4.81% for the six months ended June 30, 2024.5

Balance Sheet

•Total assets were $1.4 billion as of June 30, 2025, consistent with the level reported at December 31, 2024.

•Total deposits were $1.3 billion as of June 30, 2025, compared to $1.2 billion as of December 31, 2024. Excluded from these totals are One-Way Sell® deposits, which were placed at other banks through the ICS® network. These One-Way Sell® deposits amounted to $121.2 million as of June 30, 2025, compared to $63.3 million as of December 31, 2024.

•No non-performing assets or other real estate owned (“OREO”) were reported as of June 30, 2025 or December 31, 2024.

•Cash balances held at the Federal Reserve were $364.8 million as of June 30, 2025, compared to $406.7 million as of December 31, 2024.

•As of June 30, 2025, the total debt securities portfolio balance was $758.5 million, compared to $658.8 million as of December 31, 2024.

•Book value per share was $23.92 as of June 30, 2025, compared to $21.98 as of December 31, 2024.

•As of June 30, 2025, the Company had a total risk-based capital ratio of 44.64% and a tier 1 risk-based capital ratio of 43.48%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 41.37% and a tier 1 risk-based capital ratio of 40.21%.

•As of June 30, 2025, our liquidity ratio was 88.21%, compared to 85.13% as of December 31, 2024.

Significant Factors Impacting Our Business, Financial Condition and Results of Operations

Several key factors impact our financial performance:

Short-term interest rates: The cyclical nature of our balance sheet and our focus on liquidity cause our primary revenue source, net interest income, to be highly correlated to short-term interest rates. We strive to maintain high levels of liquidity and low loan-to-deposit ratios. Higher rates generally increase our net interest income because of our high levels of liquid interest-earning assets and low levels of interest-bearing deposits and borrowings. Conversely, if short-term interest rates fall, our net interest income would likely decrease due to our high levels of cash. The Federal Reserve has not adjusted its target federal funds rate through the first half of 2025, but did reduce the target rate during September, November and December of 2024. As short-term rates decline, our net interest income will be adversely affected. This relationship between our revenue and the yield curve may differ from that of banks that have lower levels of cash and liquidity and higher loan-to-deposit ratios.

Political organizations and federal election cycles: We provide deposit services to a wide range of political organizations, including political committees registered with the Federal Election Commission (“FEC”), such as campaign committees; party committees; separate segregated funds (including trade association political action committees (“PACs”) and corporate PACs); non-connected committees (including independent expenditure-only committees (“Super PACs”)); committees maintaining separate accounts for direct contributions and independent expenditures (“Hybrid PACs”); committees other than authorized campaign committees or those affiliated with such committees that are maintained or controlled by a candidate or federal officeholder (collectively, “Leadership PACs”)); and other tax-exempt organizations under Section 527 of the Internal Revenue Code. These accounts are often associated with firms that provide treasury, legal, or regulatory compliance services to political organizations.

Federal election cycles significantly affect our deposit levels. These cycles also impact revenue-generating activities, such as wire transfers, payments, check processing, debit card usage, and treasury management services. Historically, deposits from political organizations increase in the periods leading up to federal elections followed by a decline around the

5 Return on average risk-weighted assets is calculated as net income divided by average risk-weighted assets. Average risk-weighted assets are calculated using the last three quarter ends.

Table of Contents

elections. Election outcomes may also impact the timing and scale of deposit inflows or outflows from political organizations, and this most recent cycle was no exception.

As of June 30, 2025, total consolidated deposits were $1.3 billion, compared to $1.6 billion as of March 31, 2025. During the first quarter of 2025, the Company experienced a material increase in deposits from certain political organization clients, primarily attributable to a post-election surge in deposits following the November 2024 federal elections. At March 31, 2025, three political organization accounts each held more than 5% of total consolidated deposits. In aggregate, those three accounts totaled $472.0 million and represented 30.1% of consolidated total deposits.

Although political organization balances have historically tended to rebuild gradually in the quarters following a federal election, the timing and concentration of deposit inflows during the first quarter of 2025 differed from prior cycles and reflected elevated, event-driven fundraising activity. The Company treated these inflows as potentially temporary and maintained the balances in cash reserves held at the Federal Reserve and short-term U.S. Treasury securities that matured during the quarter.

On April 15, 2025, the Company experienced outflows of approximately $506.5 million across six political organization accounts, including the three that exceeded the 5% threshold at March 31, 2025. Following these outflows, total consolidated deposits were $1.1 billion at the close of that day. The resulting reduction in average balances contributed to the quarter-over-quarter decrease in net interest income.

Despite early-quarter outflows, deposit levels increased during the remainder of the quarter. Total consolidated deposits rose by $179.8 million between April 15, 2025 and June 30, 2025, ending the quarter at $1.3 billion. As of June 30, 2025, two political organization accounts individually exceeded 5% of total consolidated deposits.

Lending approach: Our lending policies are designed to manage credit risk. We seek borrowers with a strong capacity to repay, who have good financial habits, are generally debt averse, and prefer to repay loans quickly. We aim to mitigate credit risk on commercial loans with appropriate structuring, reasonably margined collateral, personal guarantees, a primary deposit relationship, and sometimes compensating balances. Our lending policies typically attract borrowers who may qualify for lower borrowing rates, which may result in lower yields for us.

Economic conditions: General economic conditions, particularly in the Washington, D.C. metropolitan area, and levels of government spending influence our deposit levels and earnings. At various points throughout 2024 and 2025, we estimate that at least a majority of our deposit balances were sourced from political organizations, which we believe reduces our direct exposure to broader economic trends. However, economic downturns may lead to declines in political donations, which could adversely affect our deposit levels and income. Additionally, national or regional recessions could increase the risk of loan defaults and negatively impact the credit quality of our municipal and corporate bonds, potentially leading to defaults.

Following the inauguration of President Trump on January 20, 2025, the administration introduced a series of federal fiscal reforms, culminating in the enactment of H.R.1, or the One Big Beautiful Bill Act (“BBB”), signed into law on July 4, 2025. Along with the reductions in federal spending carried out by the Department of Government Efficiency (“DOGE”), the BBB implemented sweeping tax reform and further spending changes. The provisions of the BBB together with DOGE’s federal spending reduction efforts have created operational and budgetary uncertainty across federal agencies and programs. While the long-term impact of these reforms are still evolving, the Company considers them as a known uncertainty that may influence future deposit behavior, loan demand, and trust-related services.

These measures could have broad economic implications for the Washington, D.C. metropolitan area, given the region’s reliance on federal employment and contracting. As a known uncertainty, a reduction in federal workforce levels and agency budgets could negatively impact the financial stability of consumers and businesses dependent on government spending, increasing the credit risk of our consumer and commercial borrowers. Additionally, decreased demand for commercial office space and housing may place downward pressure on residential and commercial real estate values, which could further affect the region’s economy and the performance of our loan portfolio.

Monetary Policy: We rely on the Federal Reserve’s payment of interest on reserve balances as a source of interest income. The required reserve balance and the rate of interest paid on reserve balances are determined by the Federal Reserve, but Congress, through legislative action and followed by the Executive branch approval, has power to limit or revoke the Federal Reserve’s authority to pay interest on required or excess reserves. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. We are most exposed to monetary policy

Table of Contents

during federal election years such as in 2024 when campaign-related deposits rise and we match those liabilities with short-term assets such as Federal Reserve cash balances, which reprice immediately, and Treasury bills. Although higher interest rates decrease the value of our investment securities portfolio, they increase our interest income. While we have recently benefited from elevated short-term interest rates, the Federal Reserve lowered its target federal funds rate three times in 2024. To the extent short-term rates decline, our net interest income will be adversely affected. The Federal Reserve has additional monetary tools that can impact our interest income through changes in rates, such as the overnight reverse repo rate and open market operations.

Regulatory and Supervisory Environment: We incur significant costs due to our regulation and supervision by the federal government. As a bank holding company, we are subject to comprehensive supervision and regulatory oversight by the Federal Reserve. The Bank’s primary regulator and supervisor is the OCC, which through regular examinations oversees our operations, risk management, compliance, and corporate governance. The Bank is also subject to FDIC secondary regulatory oversight that focuses on insurance standards, risk management practices, and overall regulatory compliance. We pay assessments to the FDIC and the OCC for their insurance and supervision. In addition, we manage our balance sheet to meet regulatory standards, such as capital ratio requirements. Failure to meet these standards may result in corrective actions, restrictions, and increased scrutiny from federal regulators. By adhering to these requirements, we aim to maintain our financial health and strengthen our market position. See Item 1,“Business — Supervision and Regulation” in our Form 10-K.

Uninsured Deposits: Most of our deposits come from commercial clients rather than retail clients, resulting in a relatively high level of account balances exceeding the FDIC coverage limits. As of June 30, 2025, we estimate that approximately 64.2% of our total deposits were not insured by the FDIC. To manage the associated risks, we aim to maintain high levels of liquidity, asset quality, and financial strength.

For clients with uninsured balances, we offer access to additional FDIC insurance coverage by placing their deposits in increments within the insurance limits at other banks through the ICS® network. We typically earn fee income from ICS® for deposits that are placed at other banks as One-Way Sell® deposits, or we earn interest income when we choose to receive reciprocal deposits through ICS®. Using the ICS® program helps us to manage the size of our balance sheet. See “— Financial Condition — Deposits” below.

Public Company Costs: Following the completion of, our IPO, we have incurred, and expect to continue to incur, additional costs associated with operating as a public company. These costs have included, and will continue to include, additional personnel, legal, consulting, regulatory, insurance, accounting, investor relations and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, as well as rules adopted by the SEC and national securities exchanges, requires public companies to implement specified corporate governance practices that are now applicable to us as a public company. These additional rules and regulations have increased our legal, regulatory and financial compliance costs and have made some activities more time consuming and costly.

Primary Factors Used to Evaluate Our Business

The most significant factors we use to evaluate our business and results of operations are net income, return on average equity, return on average assets and return on average risk-weighted assets. We also use net interest income, noninterest income and noninterest expense.

Net Income. Our net income depends substantially on net interest income, which is the difference between interest earned on interest-earning assets (usually interest-bearing cash, investment securities and loans) and the interest expense incurred in connection with interest-bearing liabilities (usually interest-bearing deposits and borrowings). Our net income also depends on noninterest income, which is income generated other than by our interest-earning assets. Other factors that influence our net income include our provisions for credit losses, income taxes, and noninterest expenses, which include our fixed and variable overhead costs and other miscellaneous operating expenses.

Return on Average Equity. We use return on average equity to assess our effectiveness in utilizing stockholders’ equity to generate net income. In determining return on average equity for a given period, annualized net income is divided by the average stockholders’ equity for that period.

Return on Average Assets. We monitor return on average assets to measure our operating performance and to determine how efficiently our assets are being used to generate net income. In determining return on average assets for a given period, annualized net income is divided by the average total assets for that period.

Table of Contents

Return on Average Risk-Weighted Assets. We use return on average risk-weighted assets to measure how efficiently our assets are being used to generate net income on a risk-adjusted basis. Return on average risk-weighted assets is calculated as annualized net income divided by the average of quarter end risk-weighted assets over the period observed.

Net Interest Income. Net interest income, representing interest income less interest expense, is the largest component of our net income. The level of net interest income is primarily a function of the average balance of interest-earning assets, the average balance of interest-bearing liabilities and the spread between the realized yield on such assets and the cost of such liabilities. Net interest income is impacted by the relative mix of interest-earning assets and interest-bearing liabilities and movements in market interest rates. Net interest income and net interest margin in any one period can be significantly affected by a variety of factors, including the mix and overall size of our earning assets portfolio and the cost of funding those assets. Management calculates the cost of funds performance indicator to monitor funding costs. Cost of funds is calculated as total interest expense divided by the sum of average total interest-bearing liabilities and average demand deposits.

Noninterest Income. Noninterest income consists primarily of service charge income earned from deposit placement services, service charges on accounts, revenue from trust and wealth management services, gains on sale of mortgage loans, net gains or losses on sales of securities and other income. The Company records as noninterest income deposit placement services income for One-Way Sell® deposits which are sold into the ICS® network. See “— Financial Condition — Deposits” for more information on these deposits. Service charges on deposit accounts include fees earned from monthly service charges, account analysis charges and interchange fee income. It also includes fees charged for transaction activities such as wire transfers, cash letters and overdrafts. Trust and wealth management income represents monthly service charges due from clients for managing and administering clients’ assets. Services include investment management and advisory services, custody of assets, trust services, and financial planning. Other income primarily relates to rental income and other minor items.

Noninterest Expense. Noninterest expense relates to fixed and variable overhead costs, the largest component of which is personnel expenses, including salaries and employee benefits. Certain expenses tend to vary based on the volume of activity and other factors, including professional services, data processing and communication expenses, occupancy, equipment expense, regulatory assessments and fees, marketing and business development costs, insurance expenses and other operating expenses.

Data processing and communication expenses primarily relate to expenses paid to third party providers of core processing, cloud computing and cybersecurity, a substantial component of which is paid to a core technology provider we rely on for the banking software used by our clients and back office functions. Professional services expenses include those such as internal and external audit, legal, loan review, compliance audit and compliance monitoring fees. Occupancy and equipment expenses include depreciation for buildings and improvements, fixtures and furniture, equipment, and technology related items as well as building related expenses such as utilities and maintenance costs. The Commonwealth of Virginia, where the Bank operates, levies a capital-based franchise tax on banks operating within the state, replacing the state income tax. The State of Delaware, where the Company is incorporated, levies a franchise tax based upon the number of authorized shares. FDIC and regulatory assessments represent costs incurred to cover quarterly or semi-annual payments to the FDIC or OCC for their insurance or supervision. FDIC assessments are based on a complicated matrix of factors to form an assessment rate, which is then applied to a base of quarterly average assets less quarterly tangible equity. Directors’ fees represent fees paid to our directors for board or committee meetings. Marketing and business development costs include sponsorships, membership dues, as well as marketing and advertising costs, which are subject to normal variability based on the volume and cost of sponsorship and business development activities. Insurance expenses include costs for coverage of fidelity bond, professional liability, property and casualty, workers compensation and cyber liability policies. Other operating costs include other operating and administrative costs such as other vendor and employee costs, postage and printing, office supplies, and subscriptions.

As discussed above, we expect our noninterest expenses to increase as a result of the additional costs associated with being a public company.

Primary Factors Used to Evaluate Our Financial Condition

The most significant factors we use to evaluate and manage our financial condition include liquidity, asset quality and capital.

Table of Contents

Liquidity. Maintaining an adequate level of liquidity depends on our ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting our daily operations or the financial condition of the Bank. Because transaction account deposits form a primary source of our funding, and generally can be withdrawn on demand, managing our liquidity is a top priority. Our account at the Federal Reserve, which held $364.8 million as of June 30, 2025, is a primary source of our liquidity for daily and ongoing activities.

Asset Quality. We monitor the quality of our assets based upon several factors, including the level and severity of deterioration in borrower cash flows and asset quality. We aim to adjust the allowance for credit losses to reflect loan volumes, identified credit and collateral conditions, economic conditions and other qualitative factors.

Capital. We manage capital to comply with our internal planning targets and regulatory capital standards. We monitor capital levels on an ongoing basis, perform periodic evaluations under stress scenarios and project capital levels in connection with our strategic goals to ensure appropriate capital levels. We evaluate a number of capital ratios, including Tier 1 capital to total quarterly average assets (the leverage ratio) and total Tier 1 capital to risk weighted assets.

Critical Accounting Policies and Estimates

We prepare our consolidated financial statements according to generally accepted accounting principles in the United States (“GAAP”). Preparing these statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the balance sheet and the reported amounts of revenues and expenses during the reporting period.

Our most significant accounting policies are described in the Notes to the Consolidated Financial Statements in our Form 10-K. These policies, together with the other disclosures presented in the financial statement notes and this Quarterly Report on Form 10-Q, provide information on the valuation of significant assets and liabilities and the methodologies used in determining those values. Based on the valuation techniques applied, and the sensitivity of financial statement amounts to the underlying methods, assumptions, and estimates, we have identified the determination of the allowance for credit losses and the fair value of securities as the areas that involve the most subjective or complex judgments and, as such, could be subject to revision as new information becomes available. We describe these policies in detail within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” section of our Form 10-K. There have been no material changes to our critical accounting policies from those disclosed in the Form 10-K.

The effects of new accounting pronouncements are detailed in Note 1 to the Consolidated Financial Statements, “Organization and Summary of Significant Accounting Policies.”

Table of Contents

Results of Operations

Net Income

The following table sets forth the principal components of net income for the periods indicated.


	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Interest and dividend income	$	12,765	$	11,491	$	1,274	11.1	%	$	27,506	$	21,190	$	6,316	29.8	%
Interest expense	971		917		54		5.9	%	1,864		1,824		40		2.2	%
Net interest income	11,794		10,574		1,220		11.5	%	25,642		19,366		6,276		32.4	%
Provision for (recapture of) credit losses	(314)		(98)		(216)		220.4	%	(379)		(292)		(87)		29.8	%
Net interest income after provision for (recapture of) credit losses	12,108		10,672		1,436		13.5	%	26,021		19,658		6,363		32.4	%
Noninterest income	828		2,630		(1,802)		(68.5	%)	1,523		4,278		(2,755)		(64.4	%)
Noninterest expense	7,159		6,005		1,154		19.2	%	14,730		11,746		2,984		25.4	%
Net income before taxes	5,777		7,297		(1,520)		(20.8	%)	12,814		12,190		624		5.1	%
Income tax expense	1,193		1,492		(299)		(20.0	%)	2,623		2,468		155		6.3	%
Net income	$	4,584	$	5,805	$	(1,221)	(21.0	%)	$	10,191	$	9,722	$	469	4.8	%

For the three months ended June 30, 2025, our net income decreased by $1.2 million compared to the three months ended June 30, 2024. The decrease was primarily driven by a $1.8 million, or 68.5%, decrease in noninterest income, reflecting a reduction in deposit placement services income. This decline resulted from a shift of One-Way Sell® deposits onto the balance sheet and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle. The decrease in net income was furthered by a $1.2 million, or 19.2%, increase in noninterest expenses related to operating as a pubic company, and partially offset by a $1.3 million, or 11.1%, increase in interest and dividend income from higher interest and dividends on securities.

For the six months ended June 30, 2025, our net income increased by $469 thousand compared to the six months ended June 30, 2024, driven by a $6.3 million, or 32.4%, increase in net interest income. Higher average deposit balances, particularly in the first quarter of 2025, supported growth in the investment securities portfolio, and increased cash held at the Federal Reserve. These increases were partially offset by a $3.0 million, or 25.4%, increase in noninterest expenses related to operating as a public company as well as a $2.8 million, or 64.4%, decrease in noninterest income. This decline in noninterest income is driven by a reduction in deposit placement services arising from a shift of One-Way Sell® deposits onto the balance sheet, and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle.

Table of Contents

Net Interest Income Analysis

Our operating results depend primarily on our net interest income, which is calculated as the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Interest and dividend income consists of interest and fees on loans, interest and dividends on taxable and tax-exempt securities, and interest on interest-bearing deposits in banks. Interest expense consists of interest we pay on deposits and short-term borrowings.


	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Interest and dividend income
Interest and fees on loans	$	3,356	$	3,391	$	(35)	(1.0	%)	$	6,945	$	6,671	$	274	4.1	%
Interest and dividends on securities, taxable	5,274		2,872		2,402		83.6	%	9,881		5,738		4,143		72.2	%
Interest on securities, tax exempt	279		285		(6)		(2.1	%)	561		579		(18)		(3.1	%)
Interest on interest-bearing deposits in banks	3,856		4,943		(1,087)		(22.0	%)	10,119		8,202		1,917		23.4	%
Total interest and dividend income	12,765		11,491		1,274		11.1	%	27,506		21,190		6,316		29.8	%
Interest expense
Interest on deposits	971		815		156		19.1	%	1,864		1,623		241		14.8	%
Interest on short-term borrowings	—		102		(102)		NM		—		201		(201)		NM
Total interest expense	971		917		54		5.9	%	1,864		1,824		40		2.2	%
Net interest income	$	11,794	$	10,574	$	1,220	11.5	%	$	25,642	$	19,366	$	6,276	32.4	%

__________

NM — Comparisons from positive to negative values or to zero values are considered not meaningful.

Interest income and expense are affected by fluctuations in interest rates, by changes in the volume of earning assets and interest-bearing liabilities, and by the interaction of these rate and volume factors. The following table presents an analysis of net interest income and net interest margin for the periods indicated. We divide each asset or liability segment’s income or expense by its average daily balance to calculate the average yield or cost.

Table of Contents


	Three Months Ended June 30,
	2025						2024
(dollars in thousands)	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Assets
Interest-earning assets:
Interest-bearing deposits in other banks	$	345,579	$	3,856	4.48	%	$	361,990	$	4,943	5.49	%
Investment securities, taxable1	693,851		5,274		3.05	%	510,570		2,872		2.26	%
Investment securities, tax exempt1	62,566		279		1.79	%	63,391		285		1.81	%
Loans	294,668		3,356		4.57	%	302,982		3,391		4.50	%
Total interest-earning assets	1,396,664		$	12,765

CHAIN BRIDGE BANCORP INC 10-Q