CHAIN BRIDGE BANCORP INC
For the period ended Dec 31, 2025. Filed Mar 20, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 20, 2026
CBNA$50.66+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-21.
0001392272-25-000019
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-20.
0001628280-26-020177
Item 7. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 236 previous paragraphs and 238 current paragraphs.
115 unchanged; 99 reworded; 22 added; 17 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Reclassification
Current report
•Return on average RWA was 5.28% for the year ended December 31, 2025, compared to 5.19% for 2024.2
Current report
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 report
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.
Current report
On April 15, 2025, the Company experienced outflows of approximately $506.5 million across six political organization accounts, including the three that exceeded the 5% threshold at March 31, 2025. Following these outflows, total consolidated deposits were $1.1 billion at the close of that day. The resulting reduction in average balances contributed to the quarter-over-quarter decrease in net interest income.
Current report
Despite the outflows, deposit levels have increased during the remainder of the year-to-date period. Total consolidated deposits rose by $471.2 million between April 15, 2025 and December 31, 2025, ending the year at $1.6 billion. As of December 31, 2025, no accounts individually exceeded 5% of total consolidated deposits.
Current report
Following the inauguration of President Trump on January 20, 2025, the administration introduced a series of federal fiscal reforms, culminating in the enactment of H.R.1, or the One Big Beautiful Bill Act (“BBB”), signed into law on July 4, 2025. The BBB is a budget-reconciliation statute that principally extends and modifies federal tax policy (including making permanent or expanding many provisions of the Tax Cuts and Jobs Act) and includes limited spending and revenue-adjustment measures. The BBB, together with initiatives of the Department of Government Efficiency (“DOGE”), has continued to reshape federal tax policy and prompted agencies to evaluate discretionary spending levels. During the third quarter of 2025, some federal agencies began signaling or implementing hiring delays or contract-award deferrals in response to revised fiscal guidance, which created short-term uncertainty within the Washington, D.C. metropolitan area, where the regional economy remains heavily reliant on government operations and contracting.
Current report
These measures coincided with a partial federal government shutdown from October 1 through November 12, 2025, following a lapse in federal fiscal year 2026 appropriations. Although essential services and Treasury operations continued, the shutdown contributed to slower government payments to contractors and a temporary reduction in federal payroll disbursements within the Washington, D.C. metropolitan area. A continuing resolution enacted on November 12, 2025 provided funding through January 30, 2026, and a subsequent appropriation in February 2026 allowed operations to resume.
Current report
As a result, the regional economy has experienced short-term disruptions and uncertainty, compounding the effects of the BBB and related fiscal-policy initiatives. The Company continues to view these developments, including both the BBB implementation and the federal shutdown, as known trends and uncertainties that may influence future deposit behavior, loan demand, and trust-related activity, particularly among clients whose business models or income streams are tied to federal expenditures.
Current report
For the year ended December 31, 2025, our net income decreased by $712 thousand compared to the year ended December 31, 2024, primarily due to a $5.1 million, or 59.4%, decrease in noninterest income, attributable to a decline in deposit placement services income earned from One-Way Sell® deposit accounts and a $3.2 million increase in noninterest expense, principally due to costs associated with operational growth and the Company’s transition to operating as a public company. These components more than offset the benefit of a $7.1 million, or 16.1% increase in net interest income driven by a rise in average interest-earning assets, primarily reflecting growth in the investment securities portfolio and related income.
Current report
4 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.
Current report
For the year ended December 31, 2025, our net interest income increased by $7.1 million, or 16.1%, compared to the year ended December 31, 2024. The increase in interest income was primarily driven by higher average balances in, and yields on, taxable investment securities. The yields on interest-bearing deposits at the Federal Reserve declined compared to the twelve months ended December 31, 2025, outweighing the benefit of their higher average balance and leading to lower income from these deposits. Overall, growth in interest-earning assets outpaced the increase in net interest income, resulting in a decline in the net interest margin from 3.46% to 3.39%.
Current report
For the year ended December 31, 2025, our provision for credit losses consisted of a recapture of $492 thousand, compared to a net recapture of $161 thousand for the year ended December 31, 2024. For 2025, the recapture was 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 reduction of commercial and industrial loans balances during 2025, which were elevated in the last months of 2024, also contributed to the level of recapture. The months following a general election often experience elevated commercial and industrial loan balances, as political organizations typically utilize their lines of credit around election periods and may repay these balances over the subsequent six to twelve months, or as cash flows allow.
Current report
As of December 31, 2025, our total loans decreased by $38.5 or 12.3%, compared to December 31, 2024. The decrease reflects: cyclical principal curtailments in commercial loans from political organization borrowers; the strategic reduction in our commercial real estate lending, specifically reducing our non-owner occupied office loans, to reduce our exposure to this sector; and a decrease in the consumer portfolio due to payoffs and amortization.
Current report
We are subject to various fees associated with the placement and management of deposits within the ICS® network, as outlined in the IntraFi® Participating Institution Agreement. When we elect to receive reciprocal deposits, which are network deposits that are matched with equivalent funds placed by other participating institutions, we incur an “IntraFi Placement Fee.” As of December 31, 2025, the annualized rate for this fee was 0.125%, which is applied to the reciprocal deposits balance to determine the amount of the fee incurred. This fee increases our overall operating expenses, impacting our net income.
Current report
Historically, deposits from political organizations have typically increased in the periods leading up to federal elections, declined in the quarters around federal elections, and tended to rebuild gradually in the quarters following federal elections. Deposit balances during early 2025 were affected by sizable political organization account movements, beginning with first-quarter inflows that were more concentrated and differently timed than in prior election cycles. These inflows were the result of a post-election surge in deposits following the November 2024 federal elections. This was followed by a significant outflow from certain political organization accounts early in the second quarter, which began to rebuild by mid-year, with growth continuing thereafter, ending the year at $1.6 billion. In 2025, political organization deposit inflows partially contributed to the $323.3 million year-over-year increase in total consolidated deposits and the $213.5 million increase in One Way Sell® deposits.
Current report
As of December 31, 2025, no accounts individually exceeded 5% of total consolidated deposits. As of December 31, 2024, two political organization accounts individually exceeded 5% of total consolidated deposits. The total deposit balance related to these clients was $202.6 million, accounting for 16.2% of total deposits.
Current report
The $341.3 million, or 37.4% increase in noninterest-bearing accounts from December 31, 2024 to December 31, 2025 was driven by changes in political organization deposit balances as well as growth across other deposit categories. Our political depositors typically exhibit heightened activity during the quarters leading up to a federal election contributing to the increase in the balance sheet deposits. The ICS® reciprocal deposits decreased from $130.3 million at December 31, 2024 to $106.7 million at December 31, 2025.
Current report
Federal Home Loan Bank Advance. The Bank has a secured line of credit with the FHLB, which is renewed annually in December, and which requires the Bank to pledge collateral to establish credit availability. The Bank has historically pledged single-family residential real estate loans within the Bank’s loan portfolio to establish credit availability. As of December 31, 2025 and 2024, the secured line of credit had no collateral pledged and therefore no available or outstanding balance.
Current report
On February 20, 2026, the Company entered into a $15.0 million unsecured revolving credit facility with a correspondent bank. The facility matures on February 20, 2027 and may be extended for up to two additional one-year periods at the Company’s option, subject to compliance with the agreement’s terms. Borrowings under the facility bear interest at a variable rate based on 1.30% plus the greater of 1-Month Term SOFR or 1.00%. The agreement includes customary financial and negative covenants applicable to the Company and its bank subsidiary. Because the facility was executed after December 31, 2025, no amounts related to this agreement are reflected in the accompanying consolidated financial statements. As of the date of issuance of these consolidated financial statements, no amounts were outstanding under the facility.
Current report
Stockholders’ equity as of December 31, 2025 was $169.2 million, an increase of $25.0 million compared to $144.2 million as of December 31, 2024. Net income for the year ended December 31, 2025 contributed $20.2 million to the, increase stockholders’ equity. The remaining change was due to a $4.7 million decrease in accumulated other comprehensive loss during the 2025, primarily reflecting an improvement in the market value of the AFS securities portfolio.
Current report
In February 2026, we entered into a $15.0 million unsecured revolving credit facility at the holding company level, which the Company could use to provide capital to the Bank. The facility matures in February 2027, subject to extension at our option if we remain in compliance with its terms.
Removed paragraphs (17)
Previous report
Reclassification and Initial Public Offering
Previous report
On October 7, 2024, the Company completed an offering of 1,850,000 shares of Class A Common Stock and received net proceeds of approximately $33.6 million after deducting underwriting discounts and commissions and estimated offering expenses. On November 1, 2024, the Company issued an additional 142,897 shares of Class A Common Stock as a result of the underwriters’ exercise of their 30-day option to purchase up to an additional 277,500 shares of its Class A Common Stock, resulting in net proceeds to the Company of approximately $2.9 million, after deducting underwriting discounts and commissions.
Previous report
Prior period share information in this Annual Report on Form 10-K is presented on an as adjusted basis giving effect to the Reclassification.
Previous report
•Return on average risk-weighted assets was 5.19% for the year ended December 31, 2024, compared to 2.06% for 2023.2
Previous report
Additionally, deposits at year-end include funds related to post-election activities and events. These funds have historically been temporary in nature and may be subject to outflows in the coming months. The amount and timing of such movements remain uncertain and are difficult to predict.
Previous report
Following the January 20, 2025, inauguration of President Trump, the administration has introduced a series of policy proposals aimed at reducing federal expenditures, federal real estate holdings, leases, and the federal workforce. These include a proposed 8% annual reduction in the Department of Defense budget over five years and a hiring policy limiting new hires to one for every four federal employees who leave. Additionally, the newly established Department of Government Efficiency Service (“DOGE”) has announced efforts to cut federal spending by $1 trillion, which may lead to further reductions in government contracts, agency budgets, and workforce levels. While the specifics of these proposals continue to evolve, the potential for significant federal spending cuts represents a known uncertainty that could materially impact the region’s economy.
Previous report
Fair Value of Securities:
Previous report
The fair value of securities is considered a critical accounting policy because it requires significant judgment and estimation in determining the appropriate valuation methodologies and inputs, particularly for securities that do not have readily observable market prices. While U.S. Treasury securities and other highly liquid instruments are valued using quoted market prices (Level 1), other securities, such as municipal bonds, corporate bonds, and mortgage-backed securities, often rely on pricing models that incorporate market-based inputs, including interest rates, credit spreads, and benchmark yield curves (Level 2). In cases where market activity is limited or inactive, the valuation process may involve unobservable inputs and management assumptions (Level 3), further increasing estimation uncertainty. Additionally, fluctuations in market conditions, changes in issuer credit quality, and interest rate volatility can significantly impact the fair value of these securities, affecting both the Company’s reported earnings and accumulated other comprehensive income. Given the potential for these fair value estimates to change based on evolving economic and market conditions, they are subject to ongoing reassessment, reinforcing their importance as a key area of financial statement judgment.
Previous report
For the year ended December 31, 2024, our net income increased by $12.1 million compared to the year ended December 31, 2023, primarily due to a $16.6 million, or 59.9%, increase in net interest income and a $5.3 million, or 161.5%, increase in noninterest income, derived primarily from fee income earned from One-Way Sell® deposit accounts. An increase of $7.4 million in noninterest expense, driven most notably by increases in employment and professional services costs associated with our IPO, partially offset these positive earnings components. These changes drove a $15.4 million, or 140.9%, increase in net income before taxes, resulting in a $3.2 million, or 156.3%, increase in income tax expense.
Previous report
For the year ended December 31, 2024, our net interest income increased by $16.6 million, or 59.9%, compared to the year ended December 31, 2023, primarily driven by a $14.7 million increase in the average volume of interest-bearing deposits in other banks, principally at the Federal Reserve. This increase was primarily due to cyclical inflows of deposits from political organizations ahead of the 2024 federal elections, which started building in the second half of 2023 and were invested in interest-earning assets, such as reserves at the Federal Reserve. As a result, our net interest margin increased to 3.46% for the year ended December 31, 2024, from 2.70% for the year ended December 31, 2023.
Previous report
For the year ended December 31, 2024, interest on short-term borrowings increased by 12.5% compared to the prior period, due to a $134 thousand increase in the average outstanding balance as well as an increase in the average rate from 7.39% to 8.11%.
Previous report
Marketing and business development costs. For the year ended December 31, 2024, our marketing and business development costs increased $74 thousand, or 30.9%, compared to the year ended December 31, 2023, largely due to public relations activities surrounding the IPO.
Previous report
As of December 31, 2024, our total loans increased by $9.1 million or 3.0%, compared to December 31, 2023. The increase was primarily due to originations of commercial loans to our political clients, but was partially offset by a decrease in commercial real estate balances.
Previous report
Throughout 2024, the Bank experienced fluctuations in deposit levels influenced by the federal election cycle. In the months leading up to the November 2024 federal elections, deposits from political organizations increased, consistent with historical patterns. As expected, deposit levels declined around the election as funds were disbursed for campaign-related activities. Following the election, certain political organization clients engaged in new fundraising and account openings associated with post-election activities, resulting in some deposit inflows. However, these post-election deposits were distinct from those tied directly to the election itself, and the timing and volume of such inflows varied.
Previous report
At year-end, deposit balances included funds related to post-election activities and events. Historically, these deposits have been temporary. The precise amount and timing of any such outflows remain uncertain and may not follow historical patterns, as they depend on a range of external factors, including the fundraising and disbursement activities of our political organization clients.
Previous report
Historically, 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. The results of the November 2024 election created opportunities for new post-election accounts and fundraising activities by certain of our political organization clients, which have led to some deposit inflows. However, the precise pace and scale of future deposit inflows and outflows remain uncertain and may deviate from historical patterns. External factors, including our political organization clients’ fundraising and disbursement activities, contribute to this uncertainty. Management seeks to address liquidity needs related to seasonal outflows by identifying political organization accounts, tracking activity, communicating with clients and retaining high cash balances at the Federal Reserve to fund deposit outflows.
Previous report
Stockholders’ equity as of December 31, 2024 was $144.2 million, an increase of $60.8 million compared to $83.4 million as of December 31, 2023. Proceeds from common stock issued contributed $36.5 million to the increase. Most of the remaining balance of the change was due to net income, which for the year ended December 31, 2024 was $20.9 million, increasing retained earnings.
Reworded paragraphs (99)
Previous wording
Chain Bridge Bancorp, Inc. (the “Company”) is a Delaware corporation and a publicly traded bank holding company whose Class A common stock is listed on the New York Stock Exchange under the symbol “CBNA”. The Company was incorporated on May 26, 2006, and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Company serves as the registered bank holding company for Chain Bridge Bank, National Association (the “Bank”), its wholly-owned subsidiary. The Company does not own or control any other subsidiaries and conducts substantially all of its business through the Bank.
Current wording
Chain Bridge Bancorp, Inc. (the “Company”) is a Delaware-chartered bank holding company and a publicly traded bank holding company whose Class A common stock is listed on the New York Stock Exchange under the symbol “CBNA”. The Company was incorporated on May 26, 2006, and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Company serves as the registered bank holding company for Chain Bridge Bank, National Association (the “Bank”), its wholly-owned subsidiary. The Company does not own or control any other subsidiaries and conducts substantially all of its business through the Bank.
Previous wording
In connection with the IPO, on October 3, 2024, the Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which established two new classes of common stock, Class A common stock, par value $0.01 per share (“Class A Common Stock”) and Class B common stock, par value $0.01 per share (“Class B Common Stock”), and reclassified and converted each outstanding share of the Company’s existing common stock, par value $1.00 per share (“Old Common Stock”), into 170 shares of Class B Common Stock (the “Reclassification”).
Current wording
In connection with the IPO, on October 3, 2024, the Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which established two new classes of common stock, Class A common stock, par value $0.01 per share (“Class A Common Stock”) and Class B common stock, par value $0.01 per share (“Class B Common Stock”), and reclassified and converted each outstanding share of the Company’s existing common stock, par value $1.00 per share (“Old Common Stock”), into 170 shares of Class B Common Stock (the “Reclassification”). Share information presented prior to the Reclassification date of October 3, 2024 gives effect to the Reclassification and attributes all earnings to Class B shares because no Class A shares were outstanding prior to the Reclassification.
Previous wording
•Consolidated net income was $20.9 million for the year ended December 31, 2024, compared to $8.8 million for 2023. Earnings per share for the year ended December 31, 2024 was $4.17, compared to $1.93 for 2023.1
Current wording
•Consolidated net income was $20.2 million for the year ended December 31, 2025, compared to $20.9 million for 2024. Earnings per share for the year ended December 31, 2025 was $3.08, compared to $4.17 for 2024.
Previous wording
•Net interest income, before provision for, or recapture of, credit losses, was $44.4 million for the year ended December 31, 2024, compared to $27.7 million for 2023. Net interest income, after provision for, or recapture of, credit losses was $44.5 million for the year ended December 31, 2024, compared to $27.1 million for 2023.
Current wording
•Net interest income, before recapture of credit losses, was $51.5 million for the year ended December 31, 2025, compared to $44.4 million for 2024. Net interest income, after recapture of credit losses was $52.0 million for the year ended December 31, 2025, compared to $44.5 million for 2024.
Previous wording
•Return on average equity was 20.05% for the year ended December 31, 2024, compared to 11.90% for 2023. Return on average assets was 1.62% for the year ended December 31, 2024, compared to 0.86% for 2023.
Current wording
•Return on average equity was 12.88% for the year ended December 31, 2025, compared to 20.05% for 2024. Return on average assets was 1.32% for the year ended December 31, 2025, compared to 1.62% for 2024.
Previous wording
•Total assets were $1.4 billion as of December 31, 2024, compared to $1.2 billion as of December 31, 2023.
Current wording
•Total assets were $1.8 billion as of December 31, 2025, compared to $1.4 billion as of December 31, 2024.
Previous wording
•Total deposits were $1.2 billion as of December 31, 2024, compared to $1.1 billion as of December 31, 2023. Excluded from these totals are One-Way Sell® deposits, which were placed at other banks through the IntraFi Cash Service® (“ICS®”) network. These One-Way Sell® deposits amounted to $63.3 million as of December, 2024, compared to $130.1 million as of December 31, 2023.
Current wording
•Total deposits were $1.6 billion as of December 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 IntraFi Cash Service® (“ICS®”) network. These One-Way Sell® deposits amounted to $359.9 million as of December 31, 2025, compared to $63.3 million as of December 31, 2024.
Previous wording
•Cash balances held at the Federal Reserve were $406.7 million as of December 31, 2024, compared to $309.8 million as of December 31, 2023.
Current wording
•Cash balances held at the Federal Reserve were $580.9 million as of December 31, 2025, compared to $406.7 million as of December 31, 2024.
Previous wording
•As of December 31, 2024, the Bank’s total debt securities portfolio balance was $658.8 million, compared to $566.2 million as of December 31, 2023.
Current wording
•As of December 31, 2025, the total debt securities portfolio balance was $865.3 million, compared to $658.8 million as of December 31, 2024.
Previous wording
•Book value per share was $21.98 as of December 31, 2024, compared to $18.26 as of December 31, 2023.
Current wording
•Book value per share was $25.79 as of December 31, 2025, compared to $21.98 as of December 31, 2024.
Previous wording
•As of December 31, 2024, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 39.30% and a tier 1 risk-based capital ratio of 38.12%.
Current wording
•As of December 31, 2025, the Company had a total risk-based capital ratio of 47.66% and a tier 1 risk-based capital ratio of 46.52%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 44.63% and a tier 1 risk-based capital ratio of 43.49%.
Previous wording
•As of December 31, 2024, our liquidity ratio was 85.13%, compared to 78.75% as of December 31, 2023.
Current wording
•As of December 31, 2025, our liquidity ratio was 91.86%, 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 reduced its target federal funds rate three times during 2024, during September, November and December, and as short-term rates decline, our net interest income is 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. In 2024, the Federal Reserve lowered the target federal funds rate on three occasions, followed by additional reductions on September 18th, October 30th, and December 11th in 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
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
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”); 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.
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, 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. The results of the November 2024 election created opportunities for new post-election accounts and fundraising activities by certain of our political organization clients, which have led to some deposit inflows. However, the precise pace and scale of future deposit inflows and outflows remain uncertain and may deviate from historical patterns. External factors, including our political organization clients’ fundraising and disbursement activities, contribute to this uncertainty.
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 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
2 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 five 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 five quarter ends.
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, 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 during 2024 and in September, October and December of 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
Regulatory and Supervisory Environment: We incur significant costs due to our regulation and supervision by the federal government. As a bank holding company, we are subject to comprehensive supervision and regulatory oversight by the Federal Reserve. The Bank’s primary regulator and supervisor is the OCC, which oversees our operations, risk management, compliance, and corporate governance through regular examinations. The Bank is also subject to FDIC secondary regulatory oversight that focuses on insurance standards, risk management practices, and overall regulatory compliance. We pay assessments to the FDIC and the OCC for their insurance and supervision. In addition, we manage our balance sheet to meet regulatory standards, such as capital ratio requirements. Failure to meet these standards may result in corrective actions, restrictions, and increased scrutiny from federal regulators. By adhering to these requirements, we aim to maintain our financial health and strengthen our market position. See Item 1,“Business — Supervision and Regulation.”
Current wording
Regulatory and Supervisory Environment: We incur significant costs due to our regulation and supervision by the federal government. As a bank holding company, we are subject to comprehensive supervision and regulatory oversight by the Federal Reserve. The Bank’s primary regulator and supervisor is the OCC, which through regular examinations oversees our operations, risk management, compliance, and corporate governance. The Bank is also subject to FDIC secondary regulatory oversight that focuses on insurance standards, risk management practices, and overall regulatory compliance. We pay assessments to the FDIC and the OCC for their insurance and supervision. In addition, we manage our balance sheet to meet regulatory standards, such as capital ratio requirements. Failure to meet these standards may result in corrective actions, restrictions, and increased scrutiny from federal regulators. By adhering to these requirements, we aim to maintain our financial health and strengthen our market position. See Item 1,“Business — Supervision and Regulation.”
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 December 31, 2024, we estimate that approximately 68.6% 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 December 31, 2025, we estimate that approximately 75.0% 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
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
Noninterest Expense. Noninterest expense relates to fixed and variable overhead costs, the largest component of which is personnel expenses, including salaries and employee benefits. Certain expenses tend to vary based on the volume of activity and other factors, including data processing and communication expenses, occupancy, equipment expense, regulatory assessments and fees, marketing and business development costs, insurance expenses and other operating expenses.
Current wording
Noninterest Expense. Noninterest expense relates to fixed and variable overhead costs, the largest component of which is personnel expenses, including salaries and employee benefits. Certain expenses tend to vary based on the volume of activity and other factors, including professional services, data processing and communication expenses, occupancy, equipment expense, regulatory assessments and fees, insurance expenses and other operating expenses.
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 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, 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. 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, marketing and business development costs, 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 $406.7 million as of December 31, 2024, 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 $580.9 million as of December 31, 2025, is a primary source of our liquidity for daily and ongoing activities.
Previous wording
We prepare our consolidated financial statements according to generally accepted accounting principles in the United States (“GAAP”). Preparing these statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the balance sheet and the reported amounts of revenues and expenses during the reporting period.
Current wording
We prepare our consolidated financial statements according to GAAP. Preparing these statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the balance sheet and the reported amounts of revenues and expenses during the reporting period.
Previous wording
Our most significant accounting policies are described in the Notes to the accompanying Consolidated Financial Statements. These policies, together with the other disclosures presented in the financial statement notes and this Annual Report on Form 10-K, provide information on the valuation of significant assets and liabilities and the methodologies used in determining those values. Based on the valuation techniques applied, and the sensitivity of financial statement amounts to the underlying methods, assumptions, and estimates, we have identified the determination of the allowance for credit losses and the fair value of securities as the areas that involve the most subjective or complex judgments and, as such, could be subject to revision as new information becomes available.
Current wording
Our most significant accounting policies are described in the Notes to the accompanying Consolidated Financial Statements. These policies, together with the other disclosures presented in the financial statement notes and this Annual Report on Form 10-K, provide information on the valuation of significant assets and liabilities and the methodologies used in determining those values. Based on the valuation techniques applied, and the sensitivity of financial statement amounts to the underlying methods, assumptions, and estimates, we have identified the determination of the allowance for credit losses as the area that involves the most subjective or complex judgments and, as such, could be subject to revision as new information becomes available.
Previous wording
The allowance for credit losses on loans is determined based on management’s assessment of expected credit losses over the life of the loan portfolio, utilizing historical loss experience, current economic conditions, management’s assessment of borrower creditworthiness, and other qualitative factors. Given the uncertainty in economic conditions, changes in borrower credit quality, and fluctuations in collateral values, the estimation process is inherently subjective and could materially impact earnings if actual losses differ from those estimated. The adoption of Accounting Standards Update (ASU) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326), referred to as the current expected credit loss (“CECL”), further requires the Company to incorporate reasonable and supportable forecasts, increasing the complexity of the estimation process and its sensitivity to changes in the economic outlook.
Current wording
The ACL on loans is determined based on management’s assessment of expected credit losses over the life of the loan portfolio, utilizing historical loss experience, current economic conditions, management’s assessment of borrower creditworthiness, and other qualitative factors, all of which may undergo frequent and significant changes. Given the uncertainty in economic conditions, changes in borrower credit quality, and fluctuations in collateral values, the estimation process is inherently subjective and could materially impact earnings if actual losses differ from those estimated. In addition, unforeseen changes in market and economic conditions, asset-specific risk characteristics, and qualitative drivers, both within and outside of the Company’s control, may indicate the need for an increase or decrease in the ACL on loans. Due to the Company’s limited historical credit losses, qualitative factors represent a significant component of the ACL estimate. GAAP requires the Company to incorporate reasonable and supportable forecasts, increasing the complexity of the estimation process and its sensitivity to changes in the economic outlook.
Previous wording
3 Average balances for securities transferred from available for sale to held to maturity at fair value are shown at carrying value. Average balances for available for sale and all other held to maturity bonds are shown at amortized cost.
Current wording
3 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.
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 year ended December 31, 2024, our interest and fees on loans increased 2.9% to $13.8 million compared to the year ended December 31, 2023 primarily driven by a 26 basis point increase in average yield which was offset by a reduction of the average total loan balance of $9.1 million. The months following a general election, including the last months of 2024 and the first months of 2023, often see elevated commercial and industrial loan balances, as political organizations typically utilize their lines of credit around election periods and may repay these balances over the subsequent six to twelve months, or as cash flows allow. In addition, rising interest rates caused a reduction in demand for consumer loans during the time between periods, and management has strategically allowed a decline in the commercial real estate portfolio. Rising interest rates have increased the cost of borrowing and remote work trends continue to be a concern for the commercial real estate portfolio. These factors negatively impact the value of commercial properties, making commercial real estate loans less attractive.
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 year ended December 31, 2025, our interest and fees on loans decreased 3.6% to $13.3 million compared to the year ended December 31, 2024 primarily driven by a $13.5 million reduction of the average total loan balance, offset by a slight increase in average yield. The months following a general election, including the last months of 2024, often see elevated commercial and industrial loan balances, as political organizations typically utilize their lines of credit around election periods and may repay these balances over the subsequent six to twelve months, or as cash flows allow. In addition, elevated interest rates continue to cause a reduction in demand for consumer loans, and management has strategically allowed a decline in the commercial real estate portfolio. Elevated interest rates have increased the cost of borrowing and remote work trends continue to be a concern for the commercial real estate portfolio. These factors negatively impact the value of commercial properties, making commercial real estate loans less attractive.
Previous wording
Interest and dividends on securities, taxable. For the year ended December 31, 2024, our interest and dividends on taxable securities increased 10.9% to $12.3 million from $11.1 million for the year ended December 31, 2023. The average balance for all taxable securities decreased $11.2 million when comparing the periods, although the decline was fully offset by a 28 basis point increase in yield. As portions of maturing bonds have been reinvested, we have observed a steady increase in the average yield for the taxable securities portfolio. In addition to actively reinvesting maturing bonds during the second half of 2024, the Company invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities that were organized to mature in the fourth quarter of 2024 or the first quarter of 2025, aligning with the timing of expected deposit outflows following the 2024 federal elections and post-election activities.
Current wording
Interest and dividends on securities, taxable. For the year ended December 31, 2025, our interest and dividends on taxable securities increased 77.3% to $21.8 million from $12.3 million for the year ended December 31, 2024. The average balance for all taxable securities increased $196.7 million when comparing the periods, and the average yield increased 0.68%. The Bank reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 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 year ended December 31, 2024, our interest on tax-exempt securities decreased 6.1% from the prior period due primarily to a $3.6 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. 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, leading to the decline during the period.
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 increased from 5.15% to 5.40% on July 27, 2023 and decreased three times throughout 2024, to 4.40% on December 19, 2024. For the year ended December 31, 2024, our interest on interest-bearing deposits in banks increased by $14.8 million compared to the prior period, primarily driven by a $279.0 million increase 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 three times in 2025 to 3.65% on December 11, 2025. For the year ended December 31, 2025, our interest on interest-bearing deposits in banks decreased by $1.2 million compared to the prior period, primarily due to a decrease in yield of 0.96%, which was partially offset by an increase in average balance of $59.2 million. The decline in the average balances of interest-bearing deposits in banks is a reflection of the the Bank’s reallocation of interest-earning assets into investment securities.
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 year ended December 31, 2024, our interest expense on deposits decreased 10.7% compared to the prior period. The decrease was primarily driven by a $56.2 million decrease in average interest-bearing deposit balances, partially offset by a 0.13% increase in the average rate. As of December 31, 2024 and December 31, 2023, approximately 73.1% and 69.0%, 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 year ended December 31, 2025, our interest expense on deposits increased 32.6% compared to the prior period. The increase was primarily driven by a $141.1 million increase in average interest-bearing deposit balances driven by changes in political organization deposit balances as well as growth across other deposit categories, partially offset by a 0.16% decrease in the average rate. As of December 31, 2025 and December 31, 2024, approximately 79.8% and 73.1%, respectively, of our deposits were noninterest-bearing.
Previous wording
Interest on short-term borrowings. In 2024, the Company used its $10.0 million unsecured line of credit with a correspondent bank, maintaining a $5.0 million balance from January until June, when an additional $5.0 million was drawn, bringing the total to $10.0 million. The interest rate applicable to advances under this unsecured line of credit was determined by the reference rate the Company elects to have applied to the advance, which may be the correspondent bank’s base rate, the daily Secured Overnight Financing Rate (“SOFR”) or a term SOFR rate, plus a credit spread adjustment. On October 10, 2024, the Company used a portion of the net proceeds from the IPO to fully repay the $10.0 million 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 2024 and 2023 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. During 2025, the Company had no short-term borrowings other than routine line tests and periodic overnight draws of federal funds purchase lines of credit compared to 2024 when the Company used its $10.0 million unsecured line of credit with a correspondent bank, maintaining a $5.0 million balance from January until June, when an additional $5.0 million was drawn, bringing the outstanding total to $10.0 million. On October 10, 2024, the Company used a portion of the net proceeds from the IPO to fully repay the $10.0 million 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 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
The allowance for credit losses (“ACL”) represents an amount which, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be sustained on outstanding loans and investments at the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings to fund an increase in the
Current wording
The allowance for credit losses (“ACL”) represents an amount which, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be sustained on outstanding loans and investments at the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings to fund an increase in the ACL. Conversely, a recapture of credit losses is recorded to earnings when the ACL is reduced. Our provisions for or recaptures of credit losses arising from within the loan and securities portfolios were as follows:
Previous wording
For the year ended December 31, 2024, our provision for credit losses consisted of a net recapture of $161 thousand, compared to a net provision of $641 thousand for the year ended December 31, 2023. During 2024, we received proceeds totaling $210 thousand for a bond we wrote off in its entirety during 2023 related to a single corporate issuer whose business was ultimately closed by a regulatory authority. In addition, we recaptured provisions totaling $356 thousand during 2024 because the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology, compared to the $804 thousand provision for securities credit losses recorded for the year ended December 31, 2023 which pertains to a single corporate bond discussed above.
Current wording
During 2024, we received proceeds totaling $210 thousand for a bond we wrote off in its entirety during 2023 related to a single corporate issuer whose business was ultimately closed by a regulatory authority. In addition, we recaptured provisions totaling $146 thousand during 2024 because the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology. This recapture of securities credit losses was partially offset by loan portfolio provisions required as a result of loan growth and an increase in the required reserve rate.
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, net gains or losses on sales of securities and other income.
Showing the first 40 of 99 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
The following tables present an analysis of the allowance for credit losses on securities:
Current report — wording carried from elsewhere
Management estimates that up to 75.0% of deposits were uninsured as of December 31, 2025. To obtain FDIC insurance for deposits exceeding the $250 thousand threshold, some clients enroll in the ICS®, which is described in greater detail under “— Deposits” above. As of December 31, 2025, deposit balances totaling $466.6 million were enrolled in the
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
1 All earnings for the year ended December 31, 2023 are attributed to Class B shares because no Class A shares were outstanding during the period.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
ACL. Conversely, a recapture of credit loss is recorded to earnings when the ACL is reduced. Our provisions for or recaptures of credit losses arising from within the loan and securities portfolios were as follows:
Previous report — wording carried elsewhere
The following table presents an analysis of the allowance for credit losses on securities:
Previous report — wording carried elsewhere
31, 2023, was fully repaid on October 10, 2024, using a portion of the net proceeds from the IPO. The Company formally closed the line of credit on October 11, 2024. The interest rate on the line of credit was 7.95% at December 31, 2023.