SOURCE: Chain Bridge Bancorp, Inc.

Chain Bridge Bancorp, Inc.

January 27, 2011 15:09 ET

Chain Bridge Bancorp, Inc. Reports Earnings up 48% in 2010

MCLEAN, VA--(Marketwire - January 27, 2011) - Chain Bridge Bancorp, Inc.

Financial Results Highlights

--  $2.1 million net income, up 48% from 2009

--  Return on Average Equity of 10.68%

--  Return on Average Assets of 1.08%

--  Total Assets at $189 million, up from $168.5 million at 12/31/2009

--  Tier 1 Risk-Based Capital at 16.04%

--  Allowance for Loan Losses 1.8% of loans and 452% of non-performing
    assets

--  Third full year of operations for Bank founded on August 6, 2007

For the year ending December 31, 2010, Chain Bridge Bancorp, Inc. (the "Company"), parent of Chain Bridge Bank, N.A. (the "Bank"), reported earnings of $2.1 million, up 48% from $1.4 million in 2009.

Return on average assets was 1.08% in 2010 versus 0.92% in 2009. Return on average equity was 10.68% in 2010, up from 8.78% in 2009. Earnings per share were $113 in 2010, up from $77 per share in the prior year.

"By delivering value and superior service to its clients, Chain Bridge Bank has done well in a difficult economy," said Chairman and Founder Peter G. Fitzgerald. "Chain Bridge opened just a little over three years ago but is already succeeding in differentiating itself in the local market," he added.

During 2010 the Company's book value per share increased by $121, or 12.6% per share, to $1,079 at year-end 2010 from $958 at year-end 2009. The rise in book value was attributable to the Bank's earnings for the year, coupled with a slight rise in the value of its bond portfolio. The Company originally issued its shares in 2007 at a price of $1,000 per share.

Growth

Throughout 2010, the Company enjoyed strong asset, deposit and loan growth. Assets increased by $20 million or 12% to $189 million. Growth in assets was driven by deposit growth of $10 million or 7%. Deposit growth was concentrated in a rise of noninterest bearing balances of $7 million or 22%. Loans increased by 10% to $80.3 million.

Margins

Net interest income grew by $2.3 million or 48% during 2010. Interest income grew by $1.8 million and interest expense declined by $0.5 million. The Company's improved performance in 2010 was primarily due to greater asset volumes, higher yields on loans and securities, and lower costs of funds. During 2010, the Company's net interest margin rose by 65 basis points, to 3.9%.

Loan and Asset Quality

Non-performing assets as a percentage of total assets were 0.17% at the end of 2010. The allowance for loan losses stood at $1.45 million, or 1.8% of loans, at year end. The ratio of reserves to non-performing assets was 452%. Net charge-offs during the year were $49 thousand or 0.07% of loan balances.

Capital

The Company's equity-to-assets ratio was 10.61% at December 31, 2010. Tier 1 Risk Based Capital was 16.04% and Total Risk Based Capital was 17.25%.

President and Chief Executive Officer John Brough commented: "Our high levels of capital and reserves are consistent with our conservative approach to banking. Our strong balance sheet positions us for continued controlled and profitable growth."

Chain Bridge Bank, National Association is a full service community bank organized under the laws of the United States and is the sole subsidiary of Chain Bridge Bancorp, Inc., a bank holding company registered with the Federal Reserve Bank. The Bank opened for business on August 6, 2007. The Bank is headquartered in McLean, Virginia and serves the communities of Northern Virginia and Washington, D.C. The Bank is a member of the FDIC and its deposits are insured up to the legal maximums. The Company's shares are privately held.

                 Chain Bridge Bancorp, Inc. (Consolidated)
                  Chain Bridge Bank, National Association
                                McLean, VA
                           Financial Highlights

                                                  Period Ended December 31,
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
(Dollars in Thousands)                            (Unaudited)   (Audited)
Performance Measures and Yields
   Consolidated net income                        $     2,098  $     1,417
   Earnings growth rate (%)                             48.05%           -%
   Return on average assets (ROAA) (%)                   1.08%        0.92%
   Return on average equity (ROAE) (%)                  10.68%        8.78%
   Yield on earning assets (%)                           4.63%        4.54%
   Cost of interest bearing liabilities (%)              1.08%        1.67%
   Cost of funds (%)                                     0.77%        1.33%
   Net interest margin (%)                               3.90%        3.25%
Balance Sheet Highlights
   Total assets                                   $   188,986  $   168,553
   Total loans & leases                           $    80,323  $    73,119
   Total deposits                                 $   155,579  $   145,781
   Loans to deposit ratio (%)                              52%          50%
Capitalization
   Total equity capital                           $    20,052  $    17,703
   Percent change in total equity capital                13.3%        11.7%
   Tangible equity                                $    20,052  $    17,703
   Tier 1 capital                                 $    19,159  $    16,898
   Equity as a percentage of total assets (%)           10.61%       10.50%
   Total risk-based capital ratio (%)                   17.25%       15.65%
   Tier 1 risk-based ratio (%)                          16.04%       14.59%
Deposit Composition (%)
   Noninterest bearing deposits / deposits               24.4%        21.5%
   Transaction accounts / deposits                       43.8%        48.9%
   MMDAs & savings / deposits                            27.6%        17.4%
   Time deposits / deposits                              28.6%        33.6%
Asset Quality (%)
   Non-performing assets / assets                        0.17%        0.29%
   Loan loss reserves / gross loans                      1.80%        1.67%
   Reserves / non-performing assets                       452%         252%
   Net charge-offs / average loans                       0.07%        0.32%
Chain Bridge Bancorp, Inc. Share Information
   Number of shares outstanding                        18,581       18,472
   Book value per share (dollars)                 $  1,079.17  $    958.36
   Percent change in book value per share               12.61%       10.68%
   Net income per share (dollars)                 $    113.40  $     77.38
   Percent change in net income per share               46.55%           -%




                Chain Bridge Bancorp, Inc. and Subsidiary

                        Consolidated Balance Sheets


                                                      December 31,
                                              ----------------------------
                                                  2010           2009
                                              -------------- -------------
Assets                                         (unaudited)     (audited)
  Cash and due from banks                     $   10,153,072 $   1,950,042
  Federal funds sold                                  41,000         6,000
  FDIC-insured certificates of deposits in
   banks                                              50,000     1,118,116
  Securities available for sale, at fair
   market value                                   89,537,625    83,558,581
  Restricted securities, at cost                   1,486,400       862,950
  Loans, net of allowance for loan losses of
   $1,447,180 in 2010 and $1,221,744 in 2009      78,876,231    71,897,127
  Premises and equipment, net of accumulated
   depreciation of $1,101,612 in 2010 and
   $752,104 in 2009                                6,796,571     7,050,370
  Accrued interest receivable                      1,040,124       736,965
  Other assets                                     1,005,433     1,372,887
                                              -------------- -------------

    Total assets                              $  188,986,456 $ 168,553,038
                                              ============== =============

Liabilities and Stockholders' Equity

  Liabilities
    Deposits:
      Noninterest bearing                     $   37,998,462 $  31,135,016
      Savings, interest-bearing checking and
       money market accounts                      73,103,050    65,502,986
      Time, $100,000 and over                     21,750,812    29,384,947
      Other time                                  22,726,396    19,757,963
                                              -------------- -------------
       Total deposits                         $  155,578,720 $ 145,780,912
    Securities sold under agreements to
     repurchase                                    2,077,636     3,915,506
    Federal Home Loan Bank advance                10,210,000             -
    Accrued interest payable                         172,550       550,181
    Accrued expenses and other liabilities           895,575       603,521
                                              -------------- -------------
          Total liabilities                   $  168,934,481 $ 150,850,120
                                              -------------- -------------

  Stockholders' Equity
    Preferred stock
     $1 par value, authorized 10,000 shares,
     no shares issued and outstanding        $          - - $         - -
    Common stock
     $1 par value, authorized 50,000 shares,
     18,581 and 18,472 shares issued and
     outstanding                                      18,581        18,472
    Additional paid-in capital                    18,658,175    18,494,768
    Retained earnings (deficit)                      482,548    (1,615,315)
    Accumulated other comprehensive income           892,671       804,993
                                              -------------- -------------
       Total stockholders' equity             $   20,051,975 $  17,702,918
                                              -------------- -------------
        Total liabilities and stockholders'
         equity                               $  188,986,456 $ 168,553,038
                                              ============== =============



                Chain Bridge Bancorp, Inc. and Subsidiary

                  Consolidated Statements of Operations
              For the Years Ended December 31, 2010 and 2009



                                                      2010         2009
                                                  ------------ -----------
Interest and Dividend Income                      (Unaudited)   (Audited)
  Interest and fees on loans                      $  4,102,508 $ 3,150,425
  Interest on securities, taxable                    3,446,663   3,182,462
  Interest on securities, tax-exempt                   676,871      44,568
  Dividends                                             31,800      30,218
  Interest on interest bearing deposits in banks        32,739     114,552
  Interest on federal funds sold and resell
   agreements                                              111         165
                                                  ------------ -----------
    Total interest and dividend income            $  8,290,692 $ 6,522,390
                                                  ------------ -----------

Interest Expense
  Interest on deposits                            $  1,331,963 $ 1,841,842
  Interest on repurchase agreements and other
   borrowings                                           17,351      13,496
                                                  ------------ -----------
    Total interest expense                        $  1,349,314 $ 1,855,338
                                                  ------------ -----------

    Net Interest Income                           $  6,941,378 $ 4,667,052

Provision for Loan Losses                              274,400     754,899
                                                  ------------ -----------
Net interest income after provision for loan
 losses                                           $  6,666,978 $ 3,912,153
                                                  ------------ -----------

Noninterest Income
  Service charges on deposit accounts             $    108,978 $    90,571
  Other income                                         206,329      62,977
  Gain on sale of securities                           562,023     251,732
  Rent income                                          188,249     181,204
                                                  ------------ -----------
    Total noninterest income                      $  1,065,579 $   586,484
                                                  ------------ -----------

Noninterest Expenses
  Salaries and employee benefits                  $  2,535,153 $ 2,056,469
  Occupancy and equipment expenses                     470,011     502,306
  Professional services                                318,945     198,059
  Communication and data processing expenses           478,197     410,781
  Virginia bank franchise tax                          189,000     114,000
  FDIC assessments                                     412,748     248,015
  Other operating expenses                             475,873     317,262
                                                  ------------ -----------
    Total noninterest expenses                    $  4,879,927 $ 3,846,892
                                                  ------------ -----------

    Net income before taxes                       $  2,852,630 $   651,745
Income tax expense (benefit)                           754,767    (765,239)
                                                  ------------ -----------
    Net income                                    $  2,097,863 $ 1,416,984
                                                  ============ ===========

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