CHAIN BRIDGE BANCORP INCCBNA

CHAIN BRIDGE BANCORP INC Income Taxes Disclosure

10-KFiled Mar 20, 20262 min read
Income Taxes
All income before taxes was earned in the United States. The provision for income taxes charged to operations for the years ended December 31, 2025 and 2024, consists of the following components (dollars in thousands):
December 31,
20252024
Current federal expense
$5,128 $5,463 
Current state and local expense
45 13
Deferred federal expense (benefit)
6(157)
Net provision for income taxes$5,179 $5,319 
The difference between the Company’s reported income tax expense and the amount computed by multiplying the statutory rate are as follows (dollars in thousands):
December 31,
20252024
AmountPercentAmountPercent
Income tax expense at federal statutory rate
$5,337 21.00 %$5,516 21.00 %
Other, net(157)(0.62)%(197)(0.75)%
Total income tax expense
$5,179 20.38 $5,319 20.25 %
Other items influencing income tax expense encompass permanent differences, which include, but are not limited to, interest income from tax-exempt bonds, non-deductible interest expenses in accordance with the Tax Equity and Fiscal Responsibility Act (TEFRA), dues associated with lobbying activities, as well as expenditures related to meals and entertainment.
The Company files an income tax return in the U.S. federal jurisdiction and the State of Florida, and is subject to the bank franchise tax in the Commonwealth of Virginia and state franchise taxes in the State of Delaware. With few exceptions, the Company is no longer subject to federal or state tax examinations for years prior to 2022.
The Company paid income taxes to the following jurisdictions during the years ended December 31, 2025 and 2024 (dollars in thousands):
December 31,
20252024
Federal tax
$4,710 $6,404 
Florida tax
457
Total taxes paid
$4,755 $6,411 
There were no income tax refunds received during the years ended December 31, 2025 and 2024.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2025 and 2024 are presented below (dollars in thousands):
December 31,
20252024
Deferred Tax Assets
Securities available for sale$933 $2,192 
Allowance for credit losses on loans860948
Deferred compensation688571
Depreciation7995
Allowance for credit losses on securities2742
Other1216
$2,599 $3,864 
Deferred Tax Liabilities
Net deferred loan costs
$(109)$(109)
Net deferred tax assets$2,490 $3,755 

Net deferred tax assets are reported as other assets on the consolidated balance sheets.

Historical Timeline

Fiscal YearFiled
2025Mar 20, 2026Showing above
2024Mar 21, 2025

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

Earnings Per ShareFair ValuePP&EDebtNew StandardsPay vs Performance