Chain Bridge Bancorp, Inc. and Chain Bridge Bank, N.A. Earnings Release 2012

Chain Bridge Bancorp, Inc. and Chain Bridge Bank, N.A. Earnings Release 2012 
Earnings up 23% in 2012 Over 2011 
MCLEAN, VA -- (Marketwire) -- 02/07/13 --  Chain Bridge Bancorp, Inc.
(the "Company"), the parent of Chain Bridge Bank, N.A. (the "Bank")
(collectively, "Chain Bridge"), today reported that its net income
grew 23% in 2012, to $2.956 million or $147 per share, up from $2.403
million, or $129 per share in 2011.  
Peter G. Fitzgerald, Chairman of Chain Bridge, commented: "Chain
Bridge's earnings reflect strong loan growth and continued
exceptional credit quality. The Bank performed well even in a weak
revenue environment." Regarding the outlook for 2013, Fitzgerald
said: "Chain Bridge expects continued low interest rates and,
consequently, continued pressure on bank net interest margins. To
compensate, management is working hard to control costs while at the
same time increasing non-interest income."  
Balance Sheet Growth 
Loan demand was strong during the year as loans grew 34% from $86.6
million at year end 2011 to $116.3 million at year end 2012.
Closed-end residential real estate loans grew $22.9 million while
commercial real estate loans rose $4.1 million. The Bank's securities
portfolio decreased slightly, by $2.8 million, to $158.5 million at
Average assets of the Company grew $118 million, or 53%, to $341
million in 2012 compared to $223 million in 2011. The bulk of the
growth in average assets was due to a temporary, seasonal rise in
client deposit balances. Prior to year-end, clients drew down the
bulk of these seasonal deposit balances, so year-over-year assets
increased only slightly, by $395 thousand, to $292 million at year
end 2012. 
Net Interest Income and Yields  
Net interest income increased by $2.0 million as average earning
assets grew $116 million to $330 million. Liquidity was maintained to
fund draw-downs of balances in seasonal deposit accounts, so excess
funds were invested in liquid investments and cash. Investments in
shorter term assets resulted in a decline in the yield on earning
assets of 97 basis points to 3.49 percent. Deposit growth was
primarily in non-interest bearing accounts, so the Bank's overall
cost of funds declined to 0.24 percent. The net interest margin
declined 78 basis points to 3.26
Non-Interest Income 
Non-interest income, excluding securities gains and losses, increased
$258 thousand during the year to $668 thousand. Service charge income
grew $170 thousand as transaction activity in seasonal accounts was
strong. A fresh source of revenue came from the newly established
mortgage division of the Bank. Non-interest income earned on consumer
mortgage loans totaled $67 thousand during the year. 
Asset Quality and Capital 
The Bank's asset quality remained exceptional. No loans were past-due
at December 31, 2012 and the Bank reported no repossessed assets or
non-performing loans. The Bank charged-off one commercial loan during
2012 for $225 thousand as the borrower declared bankruptcy. The Bank
is working with the bankruptcy trustee to pursue collection of the
At year-end 2012, the Company's tier 1 risk-based capital ratio stood
at 17.08% and its equity-to-assets ratio stood at 10.56. The
Company's capital ratios substantially exceed those required by law.
In 2012, MSN Money ranked Chain Bridge Bank as one of the 359 safest
banks in the country (out of more than 7,300). 
New Residential Mortgage Division 
During the year, the Bank invested considerable resources in
establishing a full service residential mortgage division. In
addition to purchasing an office condominium to house the division,
the Bank hired six highly experienced specialists who collectively
have over 100 years experience in residential mortgage lending. The
division has state-of-the art systems, two loan originators, an
underwriter, a processor, a closer and an administrative assistant,
all under one roof. 
Due to legal, regulatory, and start-up costs, the division incurred
a loss of $158 thousand and was a drag on net income in 2012.
Management expects that if interest rates remain low and the demand
for mortgages remains high that the division will add to net income
in 2013.  
Outlook for 2013 
The banking outlook for the coming year contains the same interest
rate and regulatory challenges faced over the past year with the
added complexity of uncertain fiscal policy decisions. Low rates will
continue to place further pressure on net interest income throughout
2013. Likewise, enhanced operating controls will be needed to stay
ahead of ever changing regulatory expectations. The U.S. economy is
showing signs of improvement with the jobless rate continuing its
slow decline and the housing market gradually improving, but the
recovery is tenuous and, particularly in the Washington, D.C. area,
will be impacted by policy decisions on spending cuts and
"Chain Bridge Bank is uniquely positioned to take advantage of
industry challenges over the coming year," said the Bank's President
and Chief Executive Officer John J. Brough. Brough added that "Low
rates present an opportunity for the Bank to grow its loan portfolio.
Loan growth will help the Bank's interest margin as lower yielding
cash and bonds are converted into higher yielding loans. We also are
excited to offer clients a full suite of real estate loans through
our new residential mortgage division."  
Chain Bridge Bank, National Association is a full service community
bank organized under the laws of the United States and is the sole
subsidiary of Chain Bridge Bancorp, Inc., a registered bank holding
company. The Bank is headquartered in McLean, Virginia and serves
businesses and individuals throughout the metropolitan Washington,
D.C. area. The Bank is a member of the FDIC and its deposits are
insured up to the legal maximums. The Company's shares are privately

                  Chain Bridge Bancorp, Inc (Consolidated)                  
                  Chain Bridge Bank, National Association                   
                                 McLean, VA                                 
                       Financial Highlights Year End                        
                                                  Period Ended December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
(Dollars in Thousands)                            (Unaudited)    (Audited)  
Performance Measures and Yields                                             
  Consolidated net income                        $      2,956  $      2,403 
  Earnings growth rate (%)                              23.01%        14.56%
  Return on average assets (ROAA) (%)                    0.87%         1.08%
  Return on average equity (ROAE) (%)                   10.04%        10.66%
  Yield on earning assets (%)                            3.49%         4.46%
  Cost of interest bearing liabilities (%)               0.60%         0.77%
  Cost of funds (%)                                      0.24%         0.43%
  Net interest margin (%)                                3.26%         4.04%
Balance Sheet Highlights                 
  Total assets                                   $    292,494  $    292,099 
  Average assets                                 $    341,163  $    223,002 
  Total loans & leases                           $    115,266  $     86,591 
  Total deposits                                 $    254,392  $    263,019 
  Loans to deposit ratio (%)                               45%           33%
  Total equity capital                           $     30,874  $     26,809 
  Percent change in total equity capital                 15.2%         33.7%
  Tangible equity                                $     30,874  $     26,809 
  Tier 1 capital                                 $     26,761  $     23,721 
  Equity as a percentage of total assets (%)            10.56%         9.18%
  Total risk-based capital ratio (%)                    18.23%        15.86%
  Tier 1 risk-based ratio (%)                           17.08%        14.89%
Deposit Composition (%)                                                     
  Noninterest bearing deposits / deposits                46.8%         56.8%
  Transaction accounts / deposits                        63.4%         77.3%
  MMDAs & savings / deposits                             15.3%         11.3%
  Time deposits / deposits                               21.6%         11.4%
Asset Quality (%)                                                           
  Non-performing assets / assets                            -%         0.08%
  Loan loss reserves / gross loans                       1.70%         1.78%
  Reserves / non-performing assets                          -%          642%
  Net charge-offs / average loans                        0.23%         0.08%
Chain Bridge Bancorp, Inc. Share Information                                
  Number of shares outstanding                         20,158        20,086 
  Book value per share (dollars)                 $   1,531.61  $   1,334.69 
  Percent change in book value per share                14.75%        23.68%
  Net income per share (dollars)                 $     146.92  $     128.82 
  Percent change in net income per share                14.05%        13.60%

Guy A. Brewer
Senior Vice President & CFO
Phone: 703-748-2005
Address: 1445-A Laughlin Avenue
McLean, VA 22101 
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