CHAIN BRIDGE BANCORP INC

Previous wording

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

Current wording

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

Previous 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

Current wording

•Consolidated net income was $14.9 million for the nine months ended September 30, 2025, compared to $17.2 million for the nine months ended September 30, 2024. Earnings per share for the nine months ended September 30, 2025 were $2.27, compared to $3.77 for the nine months ended September 30, 2024.1

Previous wording

4 For historical periods presented, all earnings are attributed to Class B shares because no Class A shares were outstanding.

Current wording

1 For historical periods presented, all earnings are attributed to Class B shares because no Class A shares were outstanding.

Previous 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.

Current wording

•Net interest income, before provision for, or recapture of, credit losses, was $37.9 million for the nine months ended September 30, 2025, compared to $33.0 million for the nine months ended September 30, 2024. Net interest income, after provision for, or recapture of, credit losses was $38.4 million for the nine months ended September 30, 2025, compared to $33.4 million for the nine months ended September 30, 2024.

Previous wording

•Return on average assets for the six months ended June 30, 2025 was 1.37%, compared to 1.64% for the six months ended June 30, 2024.

Current wording

•Return on average assets for the nine months ended September 30, 2025 was 1.33%, compared to 1.79% for the nine months ended September 30, 2024.

Previous 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.

Current wording

•Total deposits were $1.4 billion as of September 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 $146.4 million as of September 30, 2025, compared to $63.3 million as of December 31, 2024.

Previous 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.

Current wording

•Cash balances held at the Federal Reserve were $388.2 million as of September 30, 2025, compared to $406.7 million as of December 31, 2024.

Previous 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.

Current wording

•As of September 30, 2025, the total debt securities portfolio balance was $831.5 million, compared to $658.8 million as of December 31, 2024.

Previous wording

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

Current wording

•Book value per share was $24.86 as of September 30, 2025, compared to $21.98 as of December 31, 2024.

Previous 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%.

Current wording

•As of September 30, 2025, the Company had a total risk-based capital ratio of 45.56% and a tier 1 risk-based capital ratio of 44.43%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 42.41% and a tier 1 risk-based capital ratio of 41.29%.

Previous wording

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

Current wording

•As of September 30, 2025, our liquidity ratio was 89.54%, 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 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.

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 reduced the target rate three times throughout 2024 and again on September 18 and October 30, 2025. 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

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.

Current wording

2 Return on average RWA is calculated as net income divided by average RWA. Average RWA are calculated using the last four quarter ends.

Previous 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.

Current 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. 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

Despite early-quarter outflows, deposit levels increased during the remainder of the quarter. Total consolidated deposits rose by $179.8 million between April 15, 2025 and June 30, 2025, ending the quarter at $1.3 billion. As of June 30, 2025, two political organization accounts individually exceeded 5% of total consolidated deposits.

Current wording

Despite the outflows, deposit levels have increased during the remainder of the year-to-date period. Total consolidated deposits rose by $262.4 million between April 15, 2025 and September 30, 2025, ending the quarter at $1.4 billion. As of September 30, 2025, three political organization accounts individually exceeded 5% of total consolidated deposits. The total deposit balance related to these clients was $229.9 million or 16.8% of total deposits.

Previous 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.

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 and in September and October 2025. 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 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.

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 September 30, 2025, we estimate that approximately 61.1% 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

Return on Average Risk-Weighted Assets. We use return on average risk-weighted assets to measure how efficiently our assets are being used to generate net income on a risk-adjusted basis. Return on average risk-weighted assets is calculated as annualized net income divided by the average of quarter end risk-weighted assets over the period observed.

Current wording

Return on Average Risk-Weighted Assets. We use return on average RWA to measure how efficiently our assets are being used to generate net income on a risk-adjusted basis. Return on average RWA is calculated as annualized net income divided by the average of quarter end RWA over the period observed.

Previous wording

Noninterest Income. Noninterest income consists primarily of service charge income earned from deposit placement services, service charges on accounts, revenue from trust and wealth management services, gains on sale of mortgage loans, net gains or losses on sales of securities and other income. The Company records as noninterest income deposit placement services income for One-Way Sell® deposits which are sold into the ICS® network. See “— Financial Condition — Deposits” for more information on these deposits. Service charges on deposit accounts include fees earned from monthly service charges, account analysis charges and interchange fee income. It also includes fees charged for transaction activities such as wire transfers, cash letters and overdrafts. Trust and wealth management income represents monthly service charges due from clients for managing and administering clients’ assets. Services include investment management and advisory services, custody of assets, trust services, and financial planning. Other income primarily relates to rental income and other minor items.

Current wording

Noninterest Income. Noninterest income consists primarily of service charge income earned from deposit placement services, service charges on accounts, revenue from trust and wealth management services, gains on sale of mortgage loans, net gains or losses on sales of securities and other income. The Bank records as noninterest income deposit placement services income for One-Way Sell® deposits which are sold into the ICS® network. See “— Financial Condition — Deposits” for more information on these deposits. Service charges on deposit accounts include fees earned from monthly service charges, account analysis charges and interchange fee income. It also includes fees charged for transaction activities such as wire transfers, cash letters and overdrafts. Trust and wealth management income represents monthly service charges due from clients for managing and administering clients’ assets. Services include investment management and advisory services, custody of assets, trust services, and financial planning. Other income primarily relates to rental income and other minor items.

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, 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.

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, recruiting fees, 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

As discussed above, we expect our noninterest expenses to increase as a result of the additional costs associated with being a public company.

Current wording

As discussed above, we expect our noninterest expenses to increase as a result of the additional costs associated with operational growth and functioning as a public company.

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 $364.8 million as of June 30, 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 $388.2 million as of September 30, 2025, is a primary source of our liquidity for daily and ongoing activities.

Previous wording

For the three months ended June 30, 2025, our net income decreased by $1.2 million compared to the three months ended June 30, 2024. The decrease was primarily driven by a $1.8 million, or 68.5%, decrease in noninterest income, reflecting a reduction in deposit placement services income. This decline resulted from a shift of One-Way Sell® deposits onto the balance sheet and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle. The decrease in net income was furthered by a $1.2 million, or 19.2%, increase in noninterest expenses related to operating as a pubic company, and partially offset by a $1.3 million, or 11.1%, increase in interest and dividend income from higher interest and dividends on securities.

Current wording

For the three months ended September 30, 2025, our net income decreased by $2.8 million compared to the three months ended September 30, 2024. The decrease was primarily driven by a $2.2 million, or 72.5%, decrease in noninterest income, reflecting a reduction in deposit placement services income. This decline resulted from a shift of One-Way Sell® deposits onto the balance sheet and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle. The decrease in net income was furthered by a $1.2 million, or 8.4%, decrease in interest and dividend income from lower average balances and yields on balances held in other banks, particularly at the Federal Reserve.

Previous wording

For the six months ended June 30, 2025, our net income increased by $469 thousand compared to the six months ended June 30, 2024, driven by a $6.3 million, or 32.4%, increase in net interest income. Higher average deposit balances, particularly in the first quarter of 2025, supported growth in the investment securities portfolio, and increased cash held at the Federal Reserve. These increases were partially offset by a $3.0 million, or 25.4%, increase in noninterest expenses related to operating as a public company as well as a $2.8 million, or 64.4%, decrease in noninterest income. This decline in noninterest income is driven by a reduction in deposit placement services arising from a shift of One-Way Sell® deposits onto the balance sheet, and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle.

Current wording

For the nine months ended September 30, 2025, our net income decreased by $2.3 million compared to the nine months ended September 30, 2024, driven by a $5.0 million, or 67.8%, decrease in noninterest income and a $2.9 million, or 15.0%, increase in noninterest expense, which were partially offset by a a $4.9 million, or 14.9%, increase in net interest income. The decline in noninterest income is driven by a reduction in deposit placement services arising from a shift of One-Way Sell® deposits onto the balance sheet, and a decrease in overall deposit levels, reflecting the comparison of a non-election year to elevated deposit activity during the 2024 federal election cycle. The increase in noninterest expense was principally related to costs associated with the Company’s operational growth and functioning as a public company. Higher average deposit balances, particularly in the first quarter of 2025, supported growth in the investment securities portfolio and increased cash held at the Federal Reserve, driving the increase in net interest income.

Previous wording

1 Average balances for securities transferred from AFS to HTM at fair value are shown at carrying value. Average balances for AFS and all other HTM bonds are shown at amortized cost.

Current wording

1 Average balances for securities transferred from AFS to HTM at fair value are shown at carrying value. Average balances for AFS are shown at fair value and all other HTM bonds are shown at amortized cost.

Previous wording

1 Average balances for securities transferred from AFS to HTM at fair value are shown at carrying value. Average balances for AFS and all other HTM bonds are shown at amortized cost.

Current wording

1 Average balances for securities transferred from AFS to HTM at fair value are shown at carrying value. Average balances for AFS are shown at fair value and all other HTM bonds are shown at amortized cost.

Previous wording

2 The yield for short-term borrowings reflects interest expense incurred during the period. The amount of interest expense was less than our rounding threshold and is therefore displayed as $0.

Current wording

2 The yield for short-term borrowings reflects interest expense incurred during the period. When the amount of interest expense was less than our rounding threshold, it is displayed as $0.

Previous wording

For the three months ended June 30, 2025, our net interest income increased by $1.2 million, or 11.5%, compared to the three months ended June 30, 2024, primarily driven by an increase in the average size and yield of the investment securities portfolio, which was partially offset by a decrease in the yield of interest-bearing deposits held in other banks, such as the Federal Reserve.

Current wording

For the three months ended September 30, 2025, our net interest income decreased by $1.4 million, or 10.0%, compared to the three months ended September 30, 2024, primarily driven by a decrease in the average volume and rate of interest-bearing deposits in other banks, such as the Federal Reserve, which was partially offset by an increase in the average size and yield of the investment securities portfolio. These factors contributed to the decline in net interest margin from 3.73% to 3.35%.

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 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.

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 September 30, 2025, our interest and fees on loans decreased 5.6% to $3.3 million compared to the three months ended September 30, 2024. The decrease was due to a $15.9 million decrease in the average total loan balance, coupled with a slight decrease in the average yield.

Previous wording

For the six months ended June 30, 2025, our interest and fees on loans increased 4.1% to $6.9 million compared to the six months ended June 30, 2024. The increase was primarily a result of a 0.21% increase in the average yield, partially offset by a $1.4 million decrease in the average total loan balance.

Current wording

For the nine months ended September 30, 2025, our interest and fees on loans increased 0.8% to $10.2 million compared to the nine months ended September 30, 2024. The increase was primarily a result of a 0.14% increase in the average yield, partially offset by a $6.3 million decrease in the average total loan balance.

Previous 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.

Current wording

Interest and dividends on securities, taxable. For the three months ended September 30, 2025, our interest and dividends on taxable securities increased 57.8% to $5.6 million from $3.6 million for the three months ended September 30, 2024. The average balance for all taxable securities increased $173.8 million when comparing the periods, and the yield increased 0.51%. The Bank 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

For similar reasons, interest and dividends on taxable securities for the six months ended June 30, 2025 increased 72.2% to $9.9 million from $5.7 million for the six months ended June 30, 2024. The average balance for all taxable securities increased $153.7 million when comparing the periods, and the yield improved 0.74%.

Current wording

For similar reasons, interest and dividends on taxable securities for the nine months ended September 30, 2025 increased 66.7% to $15.5 million from $9.3 million for the nine months ended September 30, 2024. The average balance for all taxable securities increased $160.4 million when comparing the periods, and the yield increased 0.66%.

Previous 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.

Current wording

Interest on securities, tax-exempt. For the three months ended September 30, 2025, our interest on tax-exempt securities decreased 3.2% from the prior period due primarily to a $1.9 million decline in the average balance. Interest on tax-exempt securities for the nine months ended September 30, 2025 decreased 3.1% from the prior period, primarily due to a $917 thousand decline in the average balance. 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 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.

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, and once during the nine months ended September 30, 2025, to 4.15% on September 18, 2025. For the three months ended September 30, 2025, our interest on interest-bearing deposits in banks decreased by $3.1 million compared to the same period of 2024, primarily driven by both a decrease in yield of 0.99% and a $158.0 million decrease in average balances. The decline in the average balance of interest-bearing deposits in banks is a reflection of the Bank’s reallocation of interest-earning assets into investment securities.

Previous wording

For the six months ended June 30, 2025, our interest on interest-bearing deposits in banks increased by $1.9 million compared to the same period of 2024, primarily by a $155.2 million increase in average balances, which was partially offset by a decrease in yield of 1.01%.

Current wording

For the nine months ended September 30, 2025, our interest on interest-bearing deposits in banks decreased by $1.2 million compared to the same period of 2024, primarily due to a decrease in yield of 1.00%. The net decrease was partially offset by an increase of $49.9 million 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 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.

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 September 30, 2025, our interest expense on deposits increased 42.4% compared to the three months ended September 30, 2024. The increase was primarily driven by a $186.6 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

For the six months ended June 30, 2025, our interest expense on deposits increased 14.8% compared to the six months ended June 30, 2024. The increase was primarily driven by a $105.8 million increase in average interest-bearing deposit balances, partially offset by a 0.23% decrease in the average rate As of June 30, 2025 and June 30, 2024, approximately 69.8% and 82.7%, respectively, of our deposits were noninterest bearing.

Current wording

For the nine months ended September 30, 2025, our interest expense on deposits increased 24.0% compared to the nine months ended September 30, 2024. The increase was primarily driven by a $133.3 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 0.24% decrease in the average rate. As of September 30, 2025 and September 30, 2024, approximately 69.2% and 87.2%, respectively, of our deposits were noninterest-bearing.

Previous 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.

Current wording

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 nine months ended September 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 June 30, 2025, our provision for credit losses consisted of a net recapture of $314 thousand. Within the loan portfolio, the $283 thousand recapture resulted from a reduction in outstanding balances, coupled with a slight decrease in the overall reserve rate for loan credit losses arising from a change in loan mix as compared to June 30, 2024, primarily due to an increase in the proportion of residential real estate loans relative to total loans. Within our securities portfolio, the continued shrinkage of our held to maturity securities portfolio, as well as its shortening time to maturity resulted in a lower required reserve in accordance with our ACL methodology.

Current wording

For the three months ended September 30, 2025, our provision for credit losses consisted of a net recapture of $94 thousand. Within the loan portfolio, the $83 thousand recapture resulted from a reduction in outstanding balances, coupled with a slight decrease in the overall reserve rate for loan credit losses arising from a change in loan mix as compared to September 30, 2024, primarily due to an increase in the proportion of residential real estate loans relative to total loans and slight changes to qualitative components. Within our securities portfolio, the continued shrinkage of our held to maturity securities portfolio, as well as its shortening time to maturity resulted in a lower required reserve in accordance with our ACL methodology.

Previous 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.

Current wording

For the nine months ended September 30, 2025, our provision for credit losses consisted of a net recapture of $473 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. The $410 thousand recapture for the nine months ended September 30, 2024 reflects 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.