CHAIN BRIDGE BANCORP INC

Previous wording

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

Current wording

Highlights of our results of operations and financial condition as of and for the three months ended March 31, 2026 are provided below.

Previous 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

Current wording

•Consolidated net income was $7.1 million for the three months ended March 31, 2026, compared to $5.6 million for the three months ended March 31, 2025. Earnings per share for the three months ended March 31, 2026 was $1.08, compared to $0.85 for the three months ended March 31, 2025.

Previous 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.

Current wording

•Net interest income, before recapture of credit losses, was $14.9 million for the three months ended March 31, 2026, compared to $13.8 million for the three months ended March 31, 2025. Net interest income, after recapture of credit losses, was $15.3 million for the three months ended March 31, 2026, compared to $13.9 million for the three months ended March 31, 2025.

Previous 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.

Current wording

•Return on average assets for the three months ended March 31, 2026 was 1.59%, compared to 1.43% for the three months ended March 31, 2025.

Previous 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.

Current wording

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

Previous 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.

Current wording

•Total deposits were $1.7 billion as of March 31, 2026, compared to $1.6 billion as of December 31, 2025. Excluded from these totals are One-Way Sell® deposits, which are sold to the ICS® network. These One-Way Sell® deposits amounted to $595.0 million as of March 31, 2026, compared to $359.9 million as of December 31, 2025.

Previous wording

•No non-performing assets or other real estate owned (“OREO”) were reported as of September 30, 2025 or December 31, 2024.

Current wording

•No non-performing assets or OREO were reported as of March 31, 2026 or December 31, 2025.

Previous 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.

Current wording

•Cash balances held at the Federal Reserve were $603.6 million as of March 31, 2026, compared to $580.9 million as of December 31, 2025.

Previous 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.

Current wording

•As of March 31, 2026, the total debt securities portfolio balance was $1.0 billion, compared to $865.3 million as of December 31, 2025.

Previous wording

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

Current wording

•Book value per share was $26.65 as of March 31, 2026, compared to $25.79 as of December 31, 2025.

Previous 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%.

Current wording

•As of March 31, 2026, the Company had a total risk-based capital ratio of 48.65% and a tier 1 risk-based capital ratio of 47.63%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 47.14% and a tier 1 risk-based capital ratio of 46.12%.

Previous wording

•As of September 30, 2025, our liquidity ratio was 89.54%, compared to 85.13% as of December 31, 2024.

Current wording

•As of March 31, 2026, our liquidity ratio was 92.73%, compared to 91.86% as of December 31, 2025.

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 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.

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 2025, the Federal Reserve lowered the target federal funds rate on three occasions, on September 18th, October 30th, and December 11th. There have been no changes to the target federal funds rate in 2026. 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”); committees other than authorized campaign committees or those affiliated with such committees that are maintained or controlled by a candidate or federal officeholder (collectively, “Leadership PACs”)); and other tax-exempt organizations under Section 527 of the Internal Revenue Code. These accounts are often associated with firms that provide treasury, legal, or regulatory compliance services to political organizations.

Current wording

Political organizations and federal election cycles: We provide deposit services to a wide range of political organizations, including political committees registered with the Federal Election Commission (“FEC”), such as campaign committees; party committees; separate segregated funds (including trade association political action committees (“PACs”) and corporate PACs); non-connected committees (including independent expenditure-only committees (“Super PACs”), committees maintaining separate accounts for direct contributions and independent expenditures (“Hybrid PACs”), 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

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 the most recent cycle was no exception.

Previous wording

Economic conditions: General economic conditions, particularly in the Washington, D.C. metropolitan area, and levels of government spending influence our deposit levels and earnings. At various points throughout 2024 and 2025, we estimate that at least a majority of our deposit balances were sourced from political organizations, which we believe reduces our direct exposure to broader economic trends. However, economic downturns may lead to declines in political donations, which could adversely affect our deposit levels and income. Additionally, national or regional recessions could increase the risk of loan defaults and negatively impact the credit quality of our municipal and corporate bonds, potentially leading to defaults.

Current wording

Economic conditions: General economic conditions, particularly in the Washington, D.C. metropolitan area, and levels of government spending influence our deposit levels and earnings. At various points throughout 2025 and first quarter of 2026, 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

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 wording

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 2025, some federal agencies began signaling or implementing hiring delays or contract-award deferrals in response to revised fiscal guidance, where the regional economy remains heavily reliant on government operations and contracting.

Previous wording

These measures coincided with a partial federal government shutdown that began on October 1, 2025, following a lapse in federal appropriations after Congress was unable to reach agreement on fiscal year 2026 spending levels and related budget priorities. The shutdown has led to temporary furloughs of non-essential federal employees and the suspension of certain agency operations, including procurement and regulatory review functions. Although essential services and Treasury operations continue, the shutdown has contributed to slower government payments to contractors and a temporary reduction in federal payroll disbursements within the Washington, D.C. metropolitan area.

Current wording

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.

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 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.

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 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 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

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.

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 March 31, 2026, we estimate that approximately 75.8% 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

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, 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 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.

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

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.

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 $603.6 million as of March 31, 2026, is a primary source of our liquidity for daily and ongoing activities. Additionally, our bond portfolio is structured to provide liquidity when management anticipates it will be needed, with maturities aligned to expected cash flow requirements.

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 Consolidated Financial Statements in our Form 10-K. These policies, together with the other disclosures presented in the financial statement notes and this Quarterly Report on Form 10-Q, 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. We describe these policies in detail within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” section of our Form 10-K. There have been no material changes to our critical accounting policies from those disclosed in the Form 10-K.

Current wording

Our most significant accounting policies are described in the Notes to the Consolidated Financial Statements in our Form 10-K. These policies, together with the other disclosures presented in the financial statement notes and this Quarterly Report on Form 10-Q, 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. We describe this policy in detail within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” section of our Form 10-K. There have been no material changes to our critical accounting policies from those disclosed in the Form 10-K.

Previous 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.

Current 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.

Previous wording

For the nine months ended September 30, 2025, our net interest income increased by $4.9 million, or 14.9%, compared to the nine months ended September 30, 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 nine months ended September 30, 2024, 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 3.47% to 3.44%.

Current wording

For the three months ended March 31, 2026, our net interest income increased by $1.1 million, or 8.0%, compared to the three months ended March 31, 2025. The increase in interest income was primarily driven by higher average balances in, and yields on, taxable investment securities. Partially offsetting this earning component, the average balances in, and yields on loans and deposits at the Federal Reserve declined compared to the three months ended March 31, 2025. However, due to increased asset base, and lower yield earned by interest bearing deposits in other banks and loans, our net interest margin decreased to 3.41% for the three months ended March 31, 2026, from 3.56% for the three months ended March 31, 2025.

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 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.

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 March 31, 2026, our interest and fees on loans decreased 16.4% to $3.0 million compared to the three months ended March 31, 2025 primarily driven by a 27 basis point decrease in average yield and decrease of the average total loan balance of $34.7 million. The months following a general election, including the early months of 2025, 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.

Previous 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.

Current wording

Interest and dividends on securities, taxable. For the three months ended March 31, 2026, our interest and dividends on taxable securities increased 62.6% to $7.5 million from $4.6 million for the three months ended March 31, 2025. The average balance for all taxable securities increased $287.4 million when comparing the periods, and the yield improved 36 basis points. As portions of maturing bonds have been reinvested, we have observed a steady increase in the average yield for the taxable securities portfolio. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 2026, which is intended to align with the timing of expected deposit outflows.

Previous 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.

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, causing balances and income to remain stable or slightly decline over time.

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, 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.

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 Federal Reserve started 2025 with an interest rate of 4.40% on reserve balances. During 2025, the rate was reduced by 25 basis points on three occasions—September 18th, October 30th, and December 11th—bringing it down to 3.65%. This final rate stayed in effect through the first quarter of 2026. For the three months ended March 31, 2026, our interest on interest-bearing deposits in banks decreased by $1.5 million compared to the prior period, driven by both a $46.5 million decrease in average balances and a decrease in yield of 76 basis points. The decline in the average balances of interest-bearing deposits in banks is a reflection of 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 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.

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 March 31, 2026, our interest expense on deposits decreased 33.4% compared to the three months ended March 31, 2025. The decrease was driven by both a $70.0 million decrease in average interest-bearing deposit balances due to a larger volume of ICS®deposits being positioned as One-Way Sell®, and a 17 basis point decrease in the average rate. As of March 31, 2026 and March 31, 2025, approximately 80.6% and 79.3%, respectively, of our deposits were noninterest bearing.

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 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:

Current wording

The 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 loss is recorded to earnings when the ACL is reduced. Our recaptures of credit losses arising from within the loan and securities portfolios were as follows:

Previous 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.

Current wording

For the three months ended March 31, 2026, we recorded a net recapture of credit losses of $379 thousand. Within the loan portfolio, the $364 thousand recapture resulted from a reduction in outstanding balances, coupled with a decrease in the overall reserve rate for loan credit losses due to improving peer credit indicators utilized in our evaluation of qualitative factors and modest changes in the composition of the loan portfolio. Within our securities portfolio, the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology.

Previous wording

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

Current 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.

Previous wording

Deposit placement services income. For the three and nine months ended September 30, 2025, our deposit placement services income decreased by $2.3 million and $5.2 million, or 92.9% and 91.7%, respectively, compared to the three and nine months ended September 30, 2024, on account of lower One-Way Sell® deposit balances and rates offered on those balances. As of September 30, 2025 and September 30, 2024, One-Way Sell® deposits totaled $146.4 million and $432.3 million, respectively. For the three months ended September 30, 2025 and September 30, 2024, our average One-Way Sell® deposits were $120.3 million and $491.3 million, respectively. For the nine months ended September 30, 2025 and September 30, 2024, our average One-Way Sell® deposits were $90.5 million and $394.5 million, respectively. The changes reflect an increase in the Bank’s capital levels following the Company’s IPO, which permitted a greater portion of deposits to be retained on the balance sheet as reciprocal deposits, as well as the shifts in the composition and activity of the Bank’s political organization deposit base. Changes in One-Way Sell® balances were consistent with typical seasonal patterns associated with federal election cycles. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Current wording

Deposit placement services income. For the three months ended March 31, 2026, our deposit placement services income increased by $1.5 million compared to the three months ended March 31, 2025 on account of higher One-Way Sell® deposit balances. As of March 31, 2026 and March 31, 2025, One-Way Sell® deposits totaled $595.0 million and $93.2 million, respectively. For the three months ended March 31, 2026, our average One-Way Sell® deposits were significantly higher than the average balance during the three months ended March 31, 2025. Income from deposit placement services is influenced by changes in the rate paid by ICS® for One Way Sell® deposits, which generally moves in line with federal funds rate adjustments. Additionally, income is affected by shifts in the composition of our deposits allocated to One Way Sell® positions. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Previous wording

Trust and wealth management income. For the three and nine months ended September 30, 2025, our trust and wealth management income increased by 46.1% and 39.0%, respectively, compared to the corresponding periods in the prior year. These year-over-year increases are primarily due to a rise in the volume of total assets under administration, which grew to $552.4 million at September 30, 2025 from $384.0 million at September 30, 2024. The mix of the assets under administration further drove the income growth. Assets under management, which produce a higher rate of income under our fee structure, increased 76.3% from September 30, 2024, while assets under custody increased 30.6% over the same period.

Current wording

Trust and wealth management income. For the three months ended March 31, 2026, our trust and wealth management income increased by $164 thousand, or 60.7%, compared to the three months ended March 31, 2025. This increase was primarily due to a rise in the volume of total assets under administration, which grew to $711.7 million at March 31, 2026 from $409.4 million at March 31, 2025. The size and mix of the assets under administration drove the income growth. AUM, which produce a higher rate of income under our fee structure, increased 60.8% from March 31, 2025, while AUC increased 80.5% over the same period.

Previous wording

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

Current wording

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

Previous wording

Service charges on accounts. For the three months ended September 30, 2025, our service charges on accounts decreased by $126 thousand, or 33.5%, compared to the three months ended September 30, 2024 primarily driven by lower transaction volume, particularly among check processing and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions. For the nine months ended September 30, 2025, our service charges on accounts decreased by $257 thousand, or 25.5%, compared to the nine months ended September 30, 2024, also due to the higher transaction volume associated with an election year.

Current wording

Service charges on accounts. For the three months ended March 31, 2026, our service charges on accounts increased by $61 thousand, or 25.4%, compared to the three months ended March 31, 2025 primarily driven by higher transaction volume, particularly among ACH originations, check processing, and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions.

Previous wording

Gain on sale of mortgage loans. For the three and nine months ended September 30, 2025, the gain on sale of mortgages increased by $15 thousand and $30 thousand, or 115.4% and 120.0%, respectively, compared to the three months and nine months ended September 30, 2024, due to increased sales activity during the current year.

Current wording

Gain on sale of mortgage loans. For the three months ended March 31, 2026, the gain on sale of mortgages decreased by $13 thousand compared to the three months ended March 31, 2025, due to no sales activity or any related gains.