|By Marketwired .||
|February 7, 2013 08:00 AM EST||
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 year-end.
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 percent.
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 debt.
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 "sequestration."
"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 held.
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% Capitalization 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%
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 6, 2016 12:45 AM EST Reads: 835
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Dec. 6, 2016 12:30 AM EST Reads: 1,193
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Dec. 6, 2016 12:30 AM EST Reads: 4,579
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 6, 2016 12:00 AM EST Reads: 875
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 10:30 PM EST Reads: 1,055
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Dec. 5, 2016 08:45 PM EST Reads: 507
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Dec. 5, 2016 07:45 PM EST Reads: 2,229
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Dec. 5, 2016 07:45 PM EST Reads: 2,090
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Dec. 5, 2016 07:15 PM EST Reads: 403
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Dec. 5, 2016 07:15 PM EST Reads: 5,057
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 5, 2016 05:45 PM EST Reads: 1,616
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 5, 2016 04:30 PM EST Reads: 2,070
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 5, 2016 04:15 PM EST Reads: 868
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 5, 2016 03:45 PM EST Reads: 392
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 03:45 PM EST Reads: 4,260
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 5, 2016 02:45 PM EST Reads: 3,296
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 5, 2016 02:45 PM EST Reads: 1,609
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Dec. 5, 2016 02:45 PM EST Reads: 699
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 5, 2016 02:00 PM EST Reads: 2,217
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 5, 2016 01:45 PM EST Reads: 1,714