MCLEAN, Va., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Chain Bridge Bancorp, Inc. (the “Company”), the parent of Chain Bridge Bank, N.A. (the “Bank”) (collectively, “Chain Bridge”), today reported that it earned $2.593 million, or $127.41 per share, in 2017, versus $2.995 million, or $147.36 per share, in 2016. The Company’s return on equity was 7.04% in 2017 versus 8.32% in 2016.
The reduction in the corporate income tax rates at year-end 2017 required the Company to take a one-time charge of $694 thousand for the re-measurement of its deferred tax asset. Excluding this one-time charge, 2017 net income was $3.287 million, or $161.51 per share, and return on equity was 8.92%.
Book value per share was $1,872.34 at year-end 2017, versus $1,695.27 at year-end 2016. Excluding the unrealized loss on securities, book value per share was $1,942.35 at year-end 2017 versus $1,778.45 at year-end 2016.
Chain Bridge reported zero non-performing assets at December 31, 2017, the sixth consecutive year-end with zero non-performing assets.
Capital Raise
The Company’s assets grew $120.0 million or 24.8% and stood at $603.6 million at year-end 2017. To support this growth, the Company sold 3,000 shares at $2,200 per share, almost entirely to existing shareholders. The sale of additional shares added $6.6 million to the Company’s capitalization. The Company’s Tier 1 risk- based capital ratio was 17.14% at year-end 2017.
Declaration of Dividend
On January 16, 2018 the Board of Directors declared a cash dividend of $15.00 per share, up from $14.75 per share in 2017 and $11.00 per share in 2016. The dividend is payable on February 15, 2018 to shareholders of record as of January 31, 2018. Future dividends will be contingent on the Company retaining sufficient capital to support anticipated business growth, fund strategic initiatives and provide continued support for depositors.
Chain Bridge Bank, N.A. is a national banking association organized under the laws of the United States and is the sole subsidiary of Chain Bridge Bancorp, Inc., a bank holding company registered with the Federal Reserve. The Bank is a member of the FDIC and its deposits are insured up to the legal maximums. The Company’s shares are privately held.
Contact:
John J. Brough
Chief Executive Officer
Phone: 703-748-2005
Address: 1445-A Laughlin Avenue McLean, VA 22101
jbrough@chainbridgebank.com
chainbridgebank.com
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of the Bank’s operations and policies and regarding general economic conditions. Because of the uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward- looking statements. The Company’s and Bank’s past results are not necessarily indicative of future performance.
| Chain Bridge Bancorp, Inc. and | ||||||||||||||||||
| Chain Bridge Bank, National Association | ||||||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||
| Excluding Charge for Deferred | ||||||||||||||||||
| Years Ended December 31, | Tax Asset Re-measurement | |||||||||||||||||
| 2017 | 2016 | Change | 2017 | Change from 2016 | ||||||||||||||
| Performance Measures and Yields | ||||||||||||||||||
| Consolidated net income | $ | 2,592,826 | $ | 2,994,686 | -13.4 | % | $ | 3,286,780 | 9.8 | % | ||||||||
| Return on average assets (ROAA) | 0.49 | % | 0.59 | % | -0.11 | % | 0.62 | % | 0.03 | % | ||||||||
| Return on average risk weighted assets 1 | 0.99 | % | 1.14 | % | -0.15 | % | 1.25 | % | 0.11 | % | ||||||||
| Return on average equity (ROAE) | 7.04 | % | 8.32 | % | -1.28 | % | 8.92 | % | 0.60 | % | ||||||||
| Net interest margin (Fully Tax Equivalent) | 2.86 | % | 2.69 | % | 0.17 | % | 2.86 | % | 0.17 | % | ||||||||
| Asset Quality (%) | ||||||||||||||||||
| Non-performing assets / assets | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| Texas ratio 2 | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| Loan loss reserves / gross loans | 1.40 | % | 1.40 | % | 0.00 | % | 1.40 | % | 0.00 | % | ||||||||
| Net charge offs (recoveries) / average loans | 0.01 | % | -0.01 | % | 0.02 | % | 0.01 | % | 0.02 | % | ||||||||
| Balance Sheet Highlights | ||||||||||||||||||
| Total assets | $ | 603,615,786 | $ | 483,586,384 | 24.8 | % | $ | 604,309,743 | 25.0 | % | ||||||||
| Total loans, net of loans held for sale | $ | 235,276,444 | $ | 222,194,628 | 5.9 | % | $ | 235,276,444 | 5.9 | % | ||||||||
| Total deposits | $ | 550,482,128 | $ | 443,322,229 | 24.2 | % | $ | 550,482,128 | 24.2 | % | ||||||||
| Capitalization | ||||||||||||||||||
| Total equity capital | $ | 43,760,343 | $ | 34,451,333 | 27.0 | % | $ | 44,454,300 | 29.0 | % | ||||||||
| Tangible equity | $ | 43,760,343 | $ | 34,451,333 | 27.0 | % | $ | 44,454,300 | 29.0 | % | ||||||||
| Tier 1 capital | $ | 45,396,555 | $ | 36,141,679 | 25.6 | % | $ | 45,821,263 | 26.8 | % | ||||||||
| Total risk-based capital ratio | 18.39 | % | 15.06 | % | 3.33 | % | 18.55 | % | 3.49 | % | ||||||||
| Tier 1 risk-based ratio | 17.14 | % | 13.87 | % | 3.27 | % | 17.30 | % | 3.43 | % | ||||||||
| Chain Bridge Bancorp, Inc. Share Information | ||||||||||||||||||
| Number of shares outstanding | 23,372 | 20,322 | 15.0 | % | 23,372 | 15.0 | % | |||||||||||
| Book value per share | $ | 1,872.34 | $ | 1,695.27 | 10.4 | % | $ | 1,902.03 | 12.2 | % | ||||||||
| Book value per share, | ||||||||||||||||||
| Excluding unrealized gain/loss on securities | $ | 1,942.35 | $ | 1,778.45 | 9.2 | % | $ | 1,960.52 | 10.2 | % | ||||||||
| Net income per share | $ | 127.41 | $ | 147.36 | -13.5 | % | $ | 161.51 | 9.6 | % | ||||||||
| 1 Average is calculated using the last five quarter ends. | ||||||||||||||||||
| 2 Texas ratio is defined as nonperforming assets plus delinquent loans as a percent of tangible equity and reserves. | ||||||||||||||||||
| Chain Bridge Bancorp, Inc. and | |||||||
| Chain Bridge Bank, National Association | |||||||
| Consolidated Balance Sheets | |||||||
| December 31, | |||||||
| 2017 | 2016 | ||||||
| (Unaudited) | (Audited) | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 133,072,179 | $ | 67,173,120 | |||
| Securities available for sale, at fair market value | 223,898,622 | 182,387,964 | |||||
| Restricted securities, at cost | 1,953,600 | 1,695,900 | |||||
| Loans held for sale | 197,972 | 1,914,731 | |||||
| Loans, net of allowance for loan losses of $3,294,000 in 2017 | |||||||
| and $3,110,000 in 2016 | 231,982,443 | 219,084,628 | |||||
| Premises and equipment, net of accumulated depreciation | |||||||
| of $3,773,551 in 2017 and $3,389,556 in 2016 | 8,332,864 | 7,438,255 | |||||
| Accrued interest receivable | 2,246,377 | 1,657,750 | |||||
| Other assets | 1,931,729 | 2,234,036 | |||||
| Total assets | $ | 603,615,786 | $ | 483,586,384 | |||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities | |||||||
| Deposits: | |||||||
| Noninterest bearing | $ | 368,215,649 | $ | 304,861,053 | |||
| Savings, interest-bearing checking and money market accounts | 149,073,921 | 109,704,827 | |||||
| Time, $250,000 and over | 18,486,602 | 15,822,200 | |||||
| Other time | 14,705,957 | 12,934,149 | |||||
| Total deposits | $ | 550,482,129 | $ | 443,322,229 | |||
| Securities sold under agreements to repurchase | 5,407,769 | 1,521,953 | |||||
| Short term borrowings | 2,250,000 | 2,000,000 | |||||
| Accrued interest payable | 98,232 | 94,931 | |||||
| Accrued expenses and other liabilities | 1,617,314 | 2,195,938 | |||||
| Total liabilities | $ | 559,855,444 | $ | 449,135,051 | |||
| Stockholders' Equity | |||||||
| Common stock | |||||||
| $1 par value, authorized 50,000 shares, | |||||||
| 23,372 and 20,322 shares issued and outstanding | $ | 23,372 | $ | 20,322 | |||
| Additional paid-in capital | 27,786,595 | 21,097,095 | |||||
| Retained earnings | 17,586,588 | 15,024,262 | |||||
| Accumulated other comprehensive loss | (1,636,213 | ) | (1,690,346 | ) | |||
| Total stockholders' equity | $ | 43,760,342 | $ | 34,451,333 | |||
| Total liabilities and stockholders' equity | $ | 603,615,786 | $ | 483,586,384 | |||
| Chain Bridge Bancorp, Inc. and | |||||||
| Chain Bridge Bank, National Association | |||||||
| Consolidated Statements of Income | |||||||
| For the Years Ended December 31, 2017 and 2016 | |||||||
| 2017 | 2016 | ||||||
| (Unaudited) | (Audited) | ||||||
| Interest and Dividend Income | |||||||
| Interest and fees on loans | $ | 9,721,579 | $ | 8,398,548 | |||
| Interest and dividends on securities | 4,663,140 | 4,361,936 | |||||
| Interest on deposits in banks and federal funds sold | 1,027,015 | 486,296 | |||||
| Total interest and dividend income | $ | 15,411,734 | $ | 13,246,780 | |||
| Interest Expense | |||||||
| Interest on deposits | $ | 1,173,760 | $ | 609,670 | |||
| Interest on short-term borrowings | 91,735 | 70,762 | |||||
| Total interest expense | $ | 1,265,495 | $ | 680,432 | |||
| Net Interest Income | $ | 14,146,239 | $ | 12,566,348 | |||
| Provision for Loan Losses | 198,718 | 530,042 | |||||
| Net interest income after provision for loan losses | $ | 13,947,521 | $ | 12,036,306 | |||
| Noninterest Income | |||||||
| Service charges on deposit accounts | $ | 228,597 | $ | 356,286 | |||
| Gain on sale of mortgage loans | 183,602 | 191,077 | |||||
| Rent income | 138,298 | 194,076 | |||||
| Other income | 292,904 | 287,673 | |||||
| Gain (loss) on sale of securities, net | (2,349 | ) | 352,259 | ||||
| Total noninterest income | $ | 841,052 | $ | 1,381,371 | |||
| Noninterest Expenses | |||||||
| Salaries and employee benefits | $ | 6,627,950 | $ | 5,756,034 | |||
| Data processing and communication expenses | 990,082 | 921,671 | |||||
| Occupancy and equipment expenses | 630,238 | 627,927 | |||||
| Professional services | 495,326 | 396,530 | |||||
| Virginia bank franchise tax | 384,598 | 307,600 | |||||
| FDIC and regulatory assessments | 313,400 | 399,600 | |||||
| Other operating expenses | 889,666 | 1,078,760 | |||||
| Total noninterest expenses | $ | 10,331,260 | $ | 9,488,122 | |||
| Net income before taxes | $ | 4,457,313 | $ | 3,929,555 | |||
| Income Tax Expense | |||||||
| Current tax expense | $ | 1,228,935 | $ | 1,129,237 | |||
| Deferred tax benefit | $ | (58,405 | ) | $ | (194,368 | ) | |
| Income tax expense from deferred tax asset re-measurement | 693,957 | - - | |||||
| Total income tax expense | $ | 1,864,487 | $ | 934,869 | |||
| Net income | $ | 2,592,826 | $ | 2,994,686 | |||
| Earnings per share, basic and diluted | $ | 127.41 | $ | 147.36 | |||