Welcome!

Microsoft Cloud Authors: Elizabeth White, Liz McMillan, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

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 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

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%

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


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The IoTs 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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.