CHAIN BRIDGE BANCORP INC

Previous wording

Highlights of our results of operations and financial condition as of and for the three months ended March 31, 2025 are provided below.

Current wording

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

Previous wording

•Consolidated net income was $5.6 million for the three months ended March 31, 2025, compared to $3.9 million for the three months ended March 31, 2024. Earnings per share for the three months ended March 31, 2025 were $0.85, compared to $0.86 for the three months ended March 31, 2024.4

Current wording

•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

Previous wording

•Net interest income, before provision for, or recapture of, credit losses, was $13.8 million for the three months ended March 31, 2025, compared to $8.8 million for the three months ended March 31, 2024. Net interest income, after provision for, or recapture of, credit losses was $13.9 million for the three months ended March 31, 2025, compared to $9.0 million for the three months ended March 31, 2024.

Current wording

•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.

Previous wording

•Return on average risk-weighted assets was 5.74% for the three months ended March 31, 2025, compared to 3.82% for the three months ended March 31, 2024.5

Current wording

•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

Previous wording

•Total assets were $1.7 billion as of March 31, 2025, compared to $1.4 billion as of December 31, 2024.

Current wording

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

Previous wording

•Total deposits were $1.6 billion as of March 31, 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 $93.2 million as of March 31, 2025, compared to $63.3 million as of December 31, 2024.

Current wording

•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.

Previous wording

•Cash balances held at the Federal Reserve were $620.3 million as of March 31, 2025, compared to $406.7 million as of December 31, 2024.

Current wording

•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.

Previous wording

•As of March 31, 2025, the total debt securities portfolio balance was $774.6 million, compared to $658.8 million as of December 31, 2024.

Current wording

•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.

Previous wording

•Book value per share was $23.09 as of March 31, 2025, compared to $21.98 as of December 31, 2024.

Current wording

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

Previous wording

•As of March 31, 2025, the Company had a total risk-based capital ratio of 41.43% and a tier 1 risk-based capital ratio of 40.24%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 38.12% and a tier 1 risk-based capital ratio of 36.93%.

Current wording

•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%.

Previous wording

•As of March 31, 2025, our liquidity ratio was 89.14%, compared to 85.13% as of December 31, 2024.

Current wording

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

Previous wording

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 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 quarter 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.

Current wording

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.

Previous wording

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”), 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. These accounts are often associated with firms that provide treasury, legal or regulatory compliance services to political organizations.

Current wording

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.

Previous wording

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,

Current wording

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

Previous wording

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 two quarter ends.

Current wording

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.

Previous wording

deposits from political organizations increase in the periods leading up to federal elections followed by a decline around the elections. Election outcomes may also impact the timing and scale of deposit inflows or outflows from political organizations, and this cycle was no exception. 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. A significant portion of the increase was concentrated in three accounts that each, individually, held more than 5% of total deposits at quarter-end. In the aggregate, these accounts totaled $472.0 million and represented 30.1% of consolidated total deposits as of March 31, 2025. While historically political organization deposits have began rebuilding in the quarters following an election, the pace and scale of the increase in the political organization deposits during the first quarter of 2025, and the resulting deposit concentration, differed from typical patterns we have observed in prior post-election periods and reflected elevated, event-driven fundraising activity.

Current wording

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.

Previous wording

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. A significant portion of the increase was concentrated in three accounts that each, individually, held more than 5% of total deposits at quarter-end. In the aggregate, these accounts totaled $472.0 million and represented 30.1% of consolidated total deposits as of March 31, 2025. While historically political organization deposits have began rebuilding in the quarters following an election, the pace and scale of the increase in the political organization deposits during the first quarter of 2025, and the resulting deposit concentration, differed from typical patterns we have observed in prior post-election periods and reflected elevated, event-driven fundraising activity.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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 the first quarter of 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.

Current wording

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.

Previous wording

Monetary Policy: We rely on the Federal Reserve’s payment of interest on reserve balances as a source of interest income. The rate of interest on reserve balances is determined by the Federal Reserve. 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 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 high short-term rates, the Federal Reserve reduced 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.

Current wording

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 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.

Previous wording

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 March 31, 2025, we estimate that approximately 74.6% 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.

Current wording

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.

Previous wording

Public Company Costs: In preparation for, and 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.

Current wording

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.

Previous wording

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 levies a capital-based franchise tax on banks operating within the state, replacing the state income tax. 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.

Current wording

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.

Previous wording

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 $620.3 million as of March 31, 2025, is a primary source of our liquidity for daily and ongoing activities.

Current wording

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.

Previous wording

Interest and fees on loans. Loan interest income is comprised of fixed and adjustable-rate structures related to residential and commercial real estate loan products, commercial loans and other consumer loan products. Deferred loan origination fees, net of deferred loan origination costs, accrete to the loan’s yield over the life of the loan. For the three months ended March 31, 2025, our interest and fees on loans increased 9.4% to $3.6 million compared to the three months ended March 31, 2024 primarily driven by a 0.32% increase in average yield and an increase of the average total loan balance of $5.7 million.

Current wording

Interest and fees on loans. Loan interest income is comprised of fixed and adjustable-rate structures related to residential and commercial real estate loan products, commercial loans and other consumer loan products. Deferred loan origination fees, net of deferred loan origination costs, accrete to the loan’s yield over the life of the loan. For the three months ended June 30, 2025, our interest and fees on loans remained relatively consistent at $3.4 million compared to the three months ended June 30, 2024.

Previous wording

Interest and dividends on securities, taxable. For the three months ended March 31, 2025, our interest and dividends on taxable securities increased 60.8% to $4.6 million from $2.9 million for the three months ended March 31, 2024. The average balance for all taxable securities increased $136.4 million when comparing the periods, and the yield improved 0.61%. As portions of maturing bonds have been reinvested, we have observed a steady increase in the average yield for the taxable securities portfolio. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 2025 and into 2026, which is intended to align with the timing of expected deposit outflows.

Current wording

Interest and dividends on securities, taxable. For the three months ended June 30, 2025, our interest and dividends on taxable securities increased 83.6% to $5.3 million from $2.9 million for the three months ended June 30, 2024. The average balance for all taxable securities increased $183.3 million when comparing the periods, and the yield improved 0.79%. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 2025 and into 2026, which is intended to align with the timing of expected deposit outflows. As portions of maturing bonds have been reinvested in current market rates and we have continued to invest in new securities, we have observed a steady increase in the average yield for the taxable securities portfolio.

Previous wording

Interest on securities, tax-exempt. For the three months ended March 31, 2025, our interest on tax-exempt securities decreased 4.0% from the prior period due primarily to a $2.6 million decline in the average balance of tax-exempt securities. In recent years, the attainable yields for any new investment in this segment and the investment landscape have left tax-exempt securities less attractive than their taxable counterparts. Accordingly, as tax-exempt securities have matured, those proceeds have been invested into taxable municipal securities.

Current wording

Interest on securities, tax-exempt. For the three months ended June 30, 2025, our interest on tax-exempt securities decreased 2.1% from the prior period due primarily to an $825 thousand decline in the average balance of tax-exempt securities. Interest on tax-exempt securities for the six months ended June 30, 2025 decreased 3.1% from the prior period, primarily due to a $619 thousand decline in the average balance of tax-exempt securities. In recent years, the attainable yields for any new investment in this segment and the investment landscape have left tax-exempt securities less attractive than their taxable counterparts. Accordingly, as tax-exempt securities have matured, those proceeds have been invested into taxable municipal securities.

Previous wording

Interest on interest-bearing deposits in banks. Chain Bridge earns interest for accounts held at certain correspondent banks, which are primarily reserves held at the Federal Reserve. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. The interest rate paid by the Federal Reserve on reserve balances decreased three times throughout 2024, to 4.40% on December 19, 2024. For the three months ended March 31, 2025, our interest on interest-bearing deposits in banks increased by $3.0 million compared to the prior period, primarily driven by a $328.9 million increase in average balances, which was slightly offset by a decrease in yield of 1.08%.

Current wording

Interest on interest-bearing deposits in banks. Chain Bridge earns interest for accounts held at certain correspondent banks, which are primarily reserves held at the Federal Reserve. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. The interest rate paid by the Federal Reserve on reserve balances decreased three times throughout 2024, to 4.40% on December 19, 2024. For the three months ended June 30, 2025, our interest on interest-bearing deposits in banks decreased by $1.1 million compared to the same period of 2024, primarily driven by a decrease in yield of 1.01%, combined with a $16.4 million decrease in average balances.

Previous wording

Interest on deposits. The Bank pays a variable interest rate to depositors for their non-maturing savings, interest-bearing checking, and money market accounts. In addition, the Bank issues time deposits that pay a fixed rate of interest until the instrument matures. For the three months ended March 31, 2025, our interest expense on deposits increased 10.5% compared to the three months ended March 31, 2024. The increase was primarily driven by a $72.8 million increase in average interest-bearing deposit balances, partially offset by a 0.17% decrease in the average rate. As of March 31, 2025 and March 31, 2024, approximately 79.3% and 73.4%, respectively, of our deposits were noninterest bearing.

Current wording

Interest on deposits. The Bank pays a variable interest rate to depositors for their non-maturing savings, interest-bearing checking, and money market accounts. In addition, the Bank issues time deposits that pay a fixed rate of interest until the instrument matures. For the three months ended June 30, 2025, our interest expense on deposits increased 19.1% compared to the three months ended June 30, 2024. The increase was primarily driven by a $138.7 million increase in average interest-bearing deposit balances due to an increased volume of ICS® accounts held in a reciprocal position, partially offset by a 0.29% decrease in the average rate.

Previous wording

Interest on short-term borrowings. As of March 31, 2025, the Company had no short-term borrowings, compared to March 31, 2024, when the Company had an outstanding balance of $5.0 million on its $10.0 million unsecured line of credit with a correspondent bank. On October 10, 2024, the Company used a portion of the net proceeds from the IPO to fully repay the outstanding principal balance on this line of credit and closed the line on October 11, 2024. Substantially all interest on short-term borrowings reported during the three months ended March 31, 2024 was related to this line of credit. The Bank currently has no borrowings, and there are no outstanding draws on its lines of credit with the FHLB, the Federal Reserve, or other third-party institutions.

Current wording

Interest on short-term borrowings. As of June 30, 2025, the Company had no short-term borrowings, compared to June 30, 2024, when the Company had an outstanding balance of $5.0 million on its $10.0 million unsecured line of credit with a correspondent bank. On October 10, 2024, the Company used a portion of the net proceeds from the IPO to fully repay the outstanding principal balance on this line of credit and closed the line on October 11, 2024. Substantially all interest on short-term borrowings reported during the three and six months ended June 30, 2024 was related to this line of credit. The Bank currently has no borrowings, and there are no outstanding draws on its lines of credit with the FHLB, the Federal Reserve, or other third-party institutions.

Previous wording

For the three months ended March 31, 2025, our provision for credit losses consisted of a net recapture of $65 thousand. Within the loan portfolio, the $38 thousand recapture resulted from a reduction in outstanding balances, partially offset by an increase in the overall reserve rate for loan credit losses. Within our securities portfolio, the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology. During the three months ended March 31, 2024, we reported a net recapture of $194 thousand. The net recapture during the three months ended March 31, 2024 was primarily attributable to the sale of a bond for $210 thousand which was related to a single corporate issuer whose business was closed by a regulatory authority and entirely written off in 2023.

Current wording

For the six months ended June 30, 2025, our provision for credit losses consisted of a net recapture of $379 thousand, primarily attributable to the changes in the loan portfolio composition resulting from an increase in the proportion of residential real estate loans relative to total loans as well as a reduction in outstanding balances.. During the six months ended June 30, 2024, we reported a net recapture of $292 thousand, driven by the sale of a bond for $210 thousand which was related to a single corporate issuer whose business was closed by a regulatory authority and entirely written off in 2023.

Previous wording

Noninterest income consists of deposit placement services income, service charges on deposit accounts, trust and wealth management income, gains on sale of mortgage loans, net gains or losses on sales of securities and other income.

Current wording

Noninterest income consists of trust and wealth management income, service charges on deposit accounts, deposit placement services income, gains on sale of mortgage loans, and other income.

Previous wording

Trust and wealth management income. For the three months ended March 31, 2025, our trust and wealth management income increased by $83 thousand, or 44.6%, compared to the three months ended March 31, 2024. This increase was primarily due to a rise in the volume of total assets under administration, which grew to $409.4 million at March 31, 2025 from $267.5 million at March 31, 2024. The size and mix of the assets under administration drove the income growth. Assets under management, which produce a higher rate of income under our fee structure, increased 70.7% from March 31, 2024, while assets under custody increased 45.4% over the same period.

Current wording

Trust and wealth management income. For the three and six months ended June 30, 2025, our trust and wealth management income increased by 27.6% and 35.0%, respectively, compared to the corresponding periods in the prior year. These year-over-year increases are primarily due to a rise in the volume of total assets under administration, which grew to $445.4 million at June 30, 2025 from $364.0 million at June 30, 2024. The mix of the assets under administration further drove the income growth. Assets under management, which produce a higher rate of income under our fee structure, increased 61.25% from June 30, 2024, while assets under custody increased 8.01% over the same period.

Previous wording

The growth in AUC during the periods was largely driven by clients seeking higher interest rates. A material decline in interest rates could result in a reduction of custody balances, negatively impacting our revenue from these accounts. Additionally, a substantial portion of our custody account balances are related to political organizations, which are seasonal and are expected to decline following periods of high spending around federal elections.

Current wording

The growth in AUC during the periods was largely driven by clients seeking higher interest rates. A material decline in interest rates could result in a reduction of custody balances, negatively impacting our revenue from these accounts. Additionally, a substantial portion of our custody account balances are related to political organizations, which are seasonal and could decline following periods of high spending around federal elections.

Previous wording

Service charges on accounts. For the three months ended March 31, 2025, our service charges on accounts decreased by $71 thousand, or 22.8%, compared to the three months ended March 31, 2024 primarily driven by lower transaction volume, particularly among check processing and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions.

Current wording

Service charges on accounts. For the three months ended June 30, 2025, our service charges on accounts decreased by $60 thousand, or 18.7%, compared to the three months ended June 30, 2024 primarily driven by lower transaction volume, particularly among check processing and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions. For the six months ended June 30, 2025, our service charges on accounts decreased by $131 thousand, or 20.7%, compared to the six months ended June 30, 2024, also due to the higher transaction volume associated with an election year.

Previous wording

Deposit placement services income. For the three months ended March 31, 2025, our deposit placement services income decreased by $989 thousand compared to the three months ended March 31, 2024 on account of lower One-Way Sell® deposit balances. As of March 31, 2025 and March 31, 2024, One-Way Sell® deposits totaled $93.2 million and $289.2 million, respectively. For the three months ended March 31, 2025 and March 31, 2024, our average One-Way Sell® deposits were $63.5 million and $259.7 million, respectively. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Current wording

Deposit placement services income. For the three and six months ended June 30, 2025, our deposit placement services income decreased by $1.9 million and $2.9 million, or 92.2% and 90.7%, respectively, compared to the three and six months ended June 30, 2024, on account of lower One-Way Sell® deposit balances. As of June 30, 2025 and June 30, 2024, One-Way Sell® deposits totaled $121.2 million and $499.2 million, respectively. For the three months ended June 30, 2025 and June 30, 2024, our average One-Way Sell® deposits were $87.1 million and $431.5 million, respectively. For the six months ended June 30, 2025 and June 30, 2024, our average One-Way Sell® deposits were $75.4 million and $345.6 million, respectively. The changes reflect an increase in the Bank’s capital levels following the Company’s IPO, which permitted a greater portion of deposits to be retained on the balance sheet as reciprocal deposits, as well as the shifts in the composition and activity of the Bank’s political organization deposit base. Changes in One-Way Sell® balances were consistent with typical seasonal patterns associated with federal election cycles. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Previous wording

Gain on sale of mortgage loans. For the three months ended March 31, 2025, the gain on sale of mortgages increased by $13 thousand compared to the three months ended March 31, 2024, which had no sales activity or any related gains.

Current wording

Gain on sale of mortgage loans. For the three and six months ended June 30, 2025, the gain on sale of mortgages increased by $2 thousand and $15 thousand, or 16.7% and 125.0%, respectively, compared to the three months and six months ended June 30, 2024, due to increased sales activity during the current year.

Previous wording

Salaries and employee benefits. For the three months ended March 31, 2025, our salaries and employee benefits increased by $923 thousand, or 26.5%, compared to the three months ended March 31, 2024, resulting from higher headcount and salary increases.

Current wording

Salaries and employee benefits. For the three months ended June 30, 2025, our salaries and employee benefits increased by $342 thousand, or 9.0%, compared to the three months ended June 30, 2024, resulting from higher headcount and salary increases. For similar reasons, our salaries and employee benefits for the six months ended June 30, 2025 increased by $1.3 million, or 17.4%.

Previous wording

Professional services. For the three months ended March 31, 2025, our professional services expense increased $428 thousand, or 92.1%, compared to the three months ended March 31, 2024, primarily driven by legal and consulting expenses incurred in connection with the Company’s operations as a public company. During the three months ended March 31, 2025, professional services expense included recruiting services performed by a third party, in addition to recurring expenses.

Current wording

Professional services. For the three months ended June 30, 2025, our professional services expense increased $318 thousand, or 65.8%, compared to the three months ended June 30, 2024. For the six months ended June 30, 2025, our professional services expensed increased by $746 thousand, or 78.7%, compared to 2024. These year-over-year increases were primarily driven by legal and consulting expenses incurred in connection with the Company’s operations as a public company. During the six months ended June 30, 2025, professional services expense included recruiting services performed by a third party, in addition to recurring expenses.

Previous wording

Data processing and communication expenses. For the three months ended March 31, 2025, our data processing and communication expenses increased $71 thousand or 11.9%, compared to the three months ended March 31, 2024, driven by higher data processing fees charged by our core provider arising from periodic rate increases, the purchase of various new products, increased costs associated with enhanced information technology (“IT”) functionality, and an increase in core processing expenses incurred by the Trust & Wealth Department on account of growth in managed assets and custody accounts.

Current wording

Data processing and communication expenses. For the three months ended June 30, 2025, our data processing and communication expenses increased $69 thousand or 10.4%, compared to the three months ended June 30, 2024, driven by higher data processing fees charged by our core provider arising from periodic rate increases, the purchase of various new products, increased costs associated with enhanced information technology (“IT”) functionality, and an increase in core processing expenses incurred by the Trust & Wealth Department on account of growth in managed assets and custody accounts. For similar reasons, our data processing and communication expenses the six months ended June 30, 2025 increased by $140 thousand, or 11.1%.