Orange County Bancorp, Inc. Announces Third Quarter 2024 results:
Orange County Bancorp (OBT) reported Q3 2024 net income of $3.2 million ($0.57 per share), down from $9.0 million ($1.61 per share) in Q3 2023. The decline was primarily due to a significant $7.2 million provision for credit losses, mainly attributed to a problematic office space loan. Despite challenges, net interest income increased 2.1% to $23.0 million, and total deposits grew 5.0% to $2.1 billion. The company's loan portfolio expanded 2.8% to $1.8 billion, while trust and investment advisory income rose 20.1% to $3.1 million.
Orange County Bancorp (OBT) ha riportato un reddito netto nel terzo trimestre del 2024 di 3,2 milioni di dollari (0,57 dollari per azione), in calo rispetto ai 9,0 milioni di dollari (1,61 dollari per azione) del terzo trimestre del 2023. La diminuzione è stata principalmente dovuta a una significativa accantonamento per perdite su crediti di 7,2 milioni di dollari, attribuita principalmente a un prestito problematico per spazi uffici. Nonostante le sfide, il reddito netto da interessi è aumentato del 2,1% arrivando a 23,0 milioni di dollari, e i depositi totali sono cresciuti del 5,0% per toccare i 2,1 miliardi di dollari. Il portafoglio prestiti della società è aumentato del 2,8% raggiungendo 1,8 miliardi di dollari, mentre il reddito da fiduciaria e consulenza sugli investimenti è aumentato del 20,1% arrivando a 3,1 milioni di dollari.
Orange County Bancorp (OBT) reportó un ingreso neto de $3.2 millones ($0.57 por acción) en el tercer trimestre de 2024, una disminución respecto a $9.0 millones ($1.61 por acción) en el tercer trimestre de 2023. La caída se debió principalmente a una reserva significativa para pérdidas crediticias de $7.2 millones, atribuida en gran parte a un préstamo problemático para un espacio de oficina. A pesar de los desafíos, el ingreso neto por intereses aumentó un 2.1% alcanzando $23.0 millones, y los depósitos totales crecieron un 5.0% hasta $2.1 mil millones. La cartera de préstamos de la compañía se expandió un 2.8% alcanzando $1.8 mil millones, mientras que el ingreso por fideicomisos y asesoría de inversiones creció un 20.1% hasta $3.1 millones.
오렌지 카운티 뱅크 (OBT)는 2024년 3분기 순이익이 320만 달러(주당 0.57달러)로, 2023년 3분기의 900만 달러(주당 1.61달러)에서 감소했다고 보고했습니다. 감소는 주로 문제 있는 사무실 공간 대출과 관련된 720만 달러의 신용 손실 충당금으로 인해 발생했습니다. 어려움에도 불구하고, 순이자 수익은 2.1% 증가하여 2300만 달러에 이르렀고, 총 예금은 5.0% 증가하여 21억 달러에 도달했습니다. 회사의 대출 포트폴리오는 2.8% 증가하여 18억 달러에 이르렀으며, 신탁 및 투자 자문 수익은 20.1% 증가하여 310만 달러에 이르렀습니다.
Orange County Bancorp (OBT) a rapporté un revenu net de 3,2 millions de dollars (0,57 dollar par action) pour le troisième trimestre 2024, en baisse par rapport à 9,0 millions de dollars (1,61 dollar par action) pour le troisième trimestre 2023. Cette diminution est principalement due à une provision significative de 7,2 millions de dollars pour pertes de crédit, principalement attribuée à un prêt problématique pour des espaces de bureau. Malgré les défis, le revenu net d'intérêts a augmenté de 2,1 % pour atteindre 23,0 millions de dollars, et les dépôts totaux ont augmenté de 5,0 % pour atteindre 2,1 milliards de dollars. Le portefeuille de prêts de l'entreprise a augmenté de 2,8 % pour atteindre 1,8 milliard de dollars, tandis que le revenu des services fiduciaires et de conseil en investissement a augmenté de 20,1 % pour atteindre 3,1 millions de dollars.
Orange County Bancorp (OBT) meldete im dritten Quartal 2024 einen Nettogewinn von 3,2 Millionen US-Dollar (0,57 US-Dollar pro Aktie), ein Rückgang von 9,0 Millionen US-Dollar (1,61 US-Dollar pro Aktie) im dritten Quartal 2023. Der Rückgang war hauptsächlich auf eine erhebliche Rückstellung für Kreditverluste in Höhe von 7,2 Millionen US-Dollar zurückzuführen, die hauptsächlich einem problematischen Büroflächenkredit zugeschrieben wurde. Trotz der Herausforderungen stieg das Nettozinseinkommen um 2,1 % auf 23,0 Millionen US-Dollar, und die Gesamteinlagen wuchsen um 5,0 % auf 2,1 Milliarden US-Dollar. Das Kreditportfolio des Unternehmens erweiterte sich um 2,8 % auf 1,8 Milliarden US-Dollar, während die Einkommen aus Treuhand- und Anlageberatung um 20,1 % auf 3,1 Millionen US-Dollar stiegen.
- Net interest income increased 2.1% YoY to $23.0 million
- Total deposits grew 5.0% to $2.1 billion
- Total loans increased 2.8% to $1.8 billion
- Trust and investment advisory income rose 20.1% to $3.1 million
- Book value per share increased 16.3% to $34.03
- Net income decreased 64.4% YoY to $3.2 million
- EPS declined from $1.61 to $0.57 YoY
- Provision for credit losses increased significantly to $7.2 million
- Non-interest expense rose 17.3% to $16.0 million
- Efficiency ratio deteriorated to 58.8% from 52.8% YoY
Insights
Orange County Bancorp's Q3 2024 results show mixed performance with concerning elements. While net interest income grew
Key positives include loan growth of
The efficiency ratio deteriorated to
The deterioration in asset quality is significant, with non-performing loans increasing to
The allowance for credit losses to total loans increased to
- Net Interest Income increased
$467 thousand , or2.1% , to$23.0 million for the quarter ended September 30, 2024, from$22.5 million for the quarter ended September 30, 2023 - Net Interest Margin grew 3 basis points to
3.81% for the quarter ended September 30, 2024, as compared to3.78% for the quarter ended September 30, 2023 - Total Loans grew
$49.0 million , or2.8% , reaching$1.8 billion at September 30, 2024 as compared to$1.7 billion at December 31, 2023. - Total Deposits rose
$101.3 million , or5.0% , to$2.1 billion at September 30, 2024, from$2.0 billion at year-end 2023 - Book value per share increased
$4.77 , or16.3% , to$34.03 at September 30, 2024, from$29.26 at December 31, 2023 - Trust and investment advisory income rose
$521 thousand , or20.1% , to$3.1 million for Q3 2024, as compared to$2.6 million for Q3 2023
MIDDLETOWN, N.Y., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Orange County Bancorp, Inc. (the “Company” - Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of
Book value per share rose
“This quarter was one in which our core and ancillary businesses continued to perform well,” said Company President and CEO Michael Gilfeather, “but earnings were negatively impacted by a significant commercial office space loan. For the quarter, we increased our provision for loan losses by
Loan demand and economic activity in the communities we serve remains strong. This was aided by the Federal Reserve’s long-awaited reduction in interest rates – an outsized 50 basis points – which contributed to quality loan growth experienced in the quarter. For the quarter, total loans increased
Net interest margin for the quarter was
Our Wealth Management divisions continued their strong performance in Q3. Trust and Advisory income rose approximately
As frustrating as aspects of this quarter have been, overall performance of the Bank and our employees has been exemplary. We recognize success in our industry isn’t judged by quarters, but by years, with our 132-year history serving as testimony to the commitment of our employees and consistency of our performance over time. This perspective has been critical to our success and is why our staff and clients have remained close and loyal to our vision. So I once again thank our employees for their hard work and dedication, our customers for their trust and business, and our investors for their continued confidence and support.”
Third Quarter 2024 Financial Review
Net Income
Net income for the third quarter of 2024 was
Net Interest Income
For the three months ended September 30, 2024, net interest income rose
Total interest income rose
Total interest expense increased
Provision for Credit Losses
As of January 1, 2023, the Company adopted the current expected credit losses methodology (“CECL”) accounting standard, which includes loans individually evaluated, as well as loans evaluated on a pooled basis to assess the adequacy of the allowance for credit losses. The Bank seeks to estimate lifetime losses in its loan and investment portfolio by using expected discounted cash flows and supplemental qualitative considerations, including relevant economic considerations, portfolio concentrations, and other external factors, as well as evaluating investment securities held by the Bank.
The Company recognized a provision for credit losses of
Non-Interest Income
Non-interest income rose
Non-Interest Expense
Non-interest expense was
Income Tax Expense
Provision for income taxes for the three months ended September 30, 2024 was
Financial Condition
Total consolidated assets increased
Total cash and due from banks increased from
Total investment securities decreased
Total loans increased
Total deposits increased
FHLBNY short-term borrowings decreased by
Stockholders’ equity increased approximately
At September 30, 2024, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital to average assets ratio was
Wealth Management
At September 30, 2024, our Wealth Management Division, which includes trust and investment advisory, totaled
The breakdown of trust and investment advisory assets as of September 30, 2024 and December 31, 2023, respectively, is as follows:
| ORANGE COUNTY BANCORP, INC. | |||||||||||
| SUMMARY OF AUM/AUA | |||||||||||
| (UNAUDITED) | |||||||||||
| (Dollar Amounts in thousands) | |||||||||||
| At September 30, 2024 | At December 31, 2023 | ||||||||||
| Amount | Percent | Amount | Percent | ||||||||
| Investment Assets Under Management & Advisory | $ | 1,107,182 | 61.78 | % | $ | 909,384 | 57.56 | % | |||
| Trust Asset Under Administration & Management | 684,937 | 38.22 | % | 670,515 | 42.44 | % | |||||
| Total | $ | 1,792,119 | 100.00 | % | $ | 1,579,899 | 100.00 | % | |||
Loan Quality
At September 30, 2024, the Bank had total non-performing loans of
On October 25, 2024, the Bank filed a civil complaint in the United States District Court for the District of New Jersey against the lead lender, Valley National Bank, of the non-performing commercial real estate loan participation noted above. This action cites breach of contract and other claims related to the participation agreement with the lead lender. The lawsuit requests damages and demands repurchase by the lead lender of the participated loan amount in accordance with the rights available under the terms of the participation agreement.
Liquidity
Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding
The Bank also considers brokered deposits an element of its deposit strategy. As of September 30, 2024, the Bank had brokered deposit arrangements with various terms totaling
| Non-GAAP Financial Measure Reconciliations | |||||||
| The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share. | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| (Dollars in thousands except for share data) | |||||||
| Tangible Common Equity: | |||||||
| Total stockholders’ equity | $ | 193,094 | $ | 165,376 | |||
| Adjustments: | |||||||
| Goodwill | (5,359 | ) | (5,359 | ) | |||
| Other intangible assets | (892 | ) | (1,107 | ) | |||
| Tangible common equity | $ | 186,843 | $ | 158,910 | |||
| Common shares outstanding | 5,674,126 | 5,651,311 | |||||
| Book value per common share | $ | 34.03 | $ | 29.26 | |||
| Tangible book value per common share | $ | 32.93 | $ | 28.12 | |||
| Tangible Assets | |||||||
| Total assets | $ | 2,519,099 | $ | 2,485,468 | |||
| Adjustments: | |||||||
| Goodwill | (5,359 | ) | (5,359 | ) | |||
| Other intangible assets | (892 | ) | (1,107 | ) | |||
| Tangible assets | $ | 2,512,848 | $ | 2,479,002 | |||
| Tangible common equity to tangible assets | 7.44 | % | 6.41 | % | |||
About Orange County Bancorp, Inc
Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately
Forward Looking Statements
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
For further information:
Michael Lesler
EVP & Chief Financial Officer
mlesler@orangebanktrust.com
Phone: (845) 341-5111
| ORANGE COUNTY BANCORP, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CONDITION | |||||||||
| (UNAUDITED) | |||||||||
| (Dollar Amounts in thousands except per share data) | |||||||||
| September 30, 2024 | December 31, 2023 | ||||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 160,872 | $ | 147,383 | |||||
| Investment securities - available-for-sale | 469,532 | 489,948 | |||||||
| (Amortized cost | |||||||||
| Restricted investment in bank stocks | 8,267 | 14,525 | |||||||
| Loans | 1,796,094 | 1,747,062 | |||||||
| Allowance for credit losses | (31,023 | ) | (25,182 | ) | |||||
| Loans, net | 1,765,071 | 1,721,880 | |||||||
| Premises and equipment, net | 15,624 | 16,160 | |||||||
| Accrued interest receivable | 10,007 | 5,934 | |||||||
| Bank owned life insurance | 41,993 | 41,447 | |||||||
| Goodwill | 5,359 | 5,359 | |||||||
| Intangible assets | 892 | 1,107 | |||||||
| Other assets | 41,482 | 41,725 | |||||||
| TOTAL ASSETS | $ | 2,519,099 | $ | 2,485,468 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Deposits: | |||||||||
| Noninterest bearing | $ | 690,419 | $ | 699,203 | |||||
| Interest bearing | 1,449,604 | 1,339,546 | |||||||
| Total deposits | 2,140,023 | 2,038,749 | |||||||
| FHLB advances, short term | 82,000 | 224,500 | |||||||
| FHLB advances, long term | 10,000 | 10,000 | |||||||
| BTFP borrowing | 50,000 | - | |||||||
| Subordinated notes, net of issuance costs | 19,573 | 19,520 | |||||||
| Accrued expenses and other liabilities | 24,409 | 27,323 | |||||||
| TOTAL LIABILITIES | 2,326,005 | 2,320,092 | |||||||
| STOCKHOLDERS' EQUITY | |||||||||
| Common stock, | |||||||||
| 5,683,304 issued; 5,674,126 and 5,651,311 outstanding, | |||||||||
| at September 30, 2024 and December 31, 2023, respectively | 2,842 | 2,842 | |||||||
| Surplus | 120,874 | 120,392 | |||||||
| Retained Earnings | 124,174 | 107,361 | |||||||
| Accumulated other comprehensive income (loss), net of taxes | (54,386 | ) | (64,108 | ) | |||||
| Treasury stock, at cost; 9,178 and 31,993 shares at September 30, | |||||||||
| 2024 and December 31, 2023, respectively | (410 | ) | (1,111 | ) | |||||
| TOTAL STOCKHOLDERS' EQUITY | 193,094 | 165,376 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,519,099 | $ | 2,485,468 | |||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (Dollar Amounts in thousands except per share data) | |||||||||||||
| For Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| INTEREST INCOME | |||||||||||||
| Interest and fees on loans | $ | 26,375 | $ | 24,682 | $ | 78,767 | $ | 70,398 | |||||
| Interest on investment securities: | |||||||||||||
| Taxable | 2,645 | 3,150 | 8,976 | 9,570 | |||||||||
| Tax exempt | 573 | 564 | 1,722 | 1,721 | |||||||||
| Interest on Federal funds sold and other | 1,843 | 1,703 | 5,556 | 4,514 | |||||||||
| TOTAL INTEREST INCOME | 31,436 | 30,099 | 95,021 | 86,203 | |||||||||
| INTEREST EXPENSE | |||||||||||||
| Savings and NOW accounts | 5,432 | 3,506 | 15,167 | 9,081 | |||||||||
| Time deposits | 1,213 | 1,954 | 5,741 | 3,893 | |||||||||
| FHLB advances and borrowings | 1,593 | 1,907 | 4,734 | 6,295 | |||||||||
| Note payable | - | - | - | - | |||||||||
| Subordinated notes | 230 | 231 | 691 | 692 | |||||||||
| TOTAL INTEREST EXPENSE | 8,468 | 7,598 | 26,333 | 19,961 | |||||||||
| NET INTEREST INCOME | 22,968 | 22,501 | 68,688 | 66,242 | |||||||||
| Provision for credit losses | 7,191 | 837 | 7,761 | 7,406 | |||||||||
| NET INTEREST INCOME AFTER | |||||||||||||
| PROVISION FOR CREDIT LOSSES | 15,777 | 21,664 | 60,927 | 58,836 | |||||||||
| NONINTEREST INCOME | |||||||||||||
| Service charges on deposit accounts | 270 | 210 | 737 | 588 | |||||||||
| Trust income | 1,379 | 1,266 | 4,000 | 3,707 | |||||||||
| Investment advisory income | 1,741 | 1,333 | 4,966 | 3,819 | |||||||||
| Investment securities gains(losses) | - | - | - | 107 | |||||||||
| Earnings on bank owned life insurance | 39 | 243 | 551 | 725 | |||||||||
| Other | 745 | 168 | 1,413 | 730 | |||||||||
| TOTAL NONINTEREST INCOME | 4,174 | 3,220 | 11,667 | 9,676 | |||||||||
| NONINTEREST EXPENSE | |||||||||||||
| Salaries | 6,687 | 6,135 | 20,298 | 18,606 | |||||||||
| Employee benefits | 2,269 | 1,752 | 6,695 | 5,359 | |||||||||
| Occupancy expense | 1,222 | 1,180 | 3,547 | 3,614 | |||||||||
| Professional fees | 1,557 | 799 | 4,330 | 3,512 | |||||||||
| Directors' fees and expenses | 584 | 295 | 781 | 682 | |||||||||
| Computer software expense | 1,526 | 1,233 | 4,191 | 3,714 | |||||||||
| FDIC assessment | 210 | 463 | 978 | 1,023 | |||||||||
| Advertising expenses | 364 | 364 | 1,166 | 1,074 | |||||||||
| Advisor expenses related to trust income | 30 | 30 | 95 | 89 | |||||||||
| Telephone expenses | 190 | 184 | 565 | 534 | |||||||||
| Intangible amortization | 71 | 71 | 214 | 214 | |||||||||
| Other | 1,237 | 1,084 | 3,884 | 3,644 | |||||||||
| TOTAL NONINTEREST EXPENSE | 15,947 | 13,590 | 46,744 | 42,065 | |||||||||
| Income before income taxes | 4,004 | 11,294 | 25,850 | 26,447 | |||||||||
| Provision for income taxes | 788 | 2,256 | 5,131 | 5,093 | |||||||||
| NET INCOME | $ | 3,216 | $ | 9,038 | $ | 20,719 | $ | 21,354 | |||||
| Basic and diluted earnings per share | $ | 0.57 | $ | 1.61 | $ | 3.67 | $ | 3.79 | |||||
| Weighted average shares outstanding | 5,653,904 | 5,629,642 | 5,643,591 | 5,628,036 | |||||||||
| ORANGE COUNTY BANCORP, INC. | ||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| (Dollar Amounts in thousands) | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Loans Receivable (net of PPP) | $ | 1,759,989 | $ | 26,372 | 5.94 | % | $ | 1,697,745 | $ | 24,677 | 5.77 | % | ||||||||
| PPP Loans | 186 | 3 | 6.40 | % | 996 | 5 | 1.99 | % | ||||||||||||
| Investment securities | 463,347 | 3,252 | 2.78 | % | 495,803 | 3,466 | 2.77 | % | ||||||||||||
| Due from banks | 160,563 | 1,843 | 4.55 | % | 154,335 | 1,703 | 4.38 | % | ||||||||||||
| Other | 7,601 | (34 | ) | -1.77 | % | 10,299 | 248 | 9.55 | % | |||||||||||
| Total interest earning assets | 2,391,686 | 31,436 | 5.21 | % | 2,359,178 | 30,099 | 5.06 | % | ||||||||||||
| Non-interest earning assets | 94,476 | 96,894 | ||||||||||||||||||
| Total assets | $ | 2,486,162 | $ | 2,456,072 | ||||||||||||||||
| Liabilities and equity: | ||||||||||||||||||||
| Interest-bearing demand accounts | $ | 370,442 | $ | 425 | 0.46 | % | $ | 334,658 | $ | 332 | 0.39 | % | ||||||||
| Money market accounts | 695,516 | 4,083 | 2.33 | % | 632,300 | 2,551 | 1.60 | % | ||||||||||||
| Savings accounts | 256,934 | 924 | 1.43 | % | 242,627 | 623 | 1.02 | % | ||||||||||||
| Certificates of deposit | 116,817 | 1,213 | 4.12 | % | 176,369 | 1,954 | 4.40 | % | ||||||||||||
| Total interest-bearing deposits | 1,439,709 | 6,645 | 1.83 | % | 1,385,954 | 5,460 | 1.56 | % | ||||||||||||
| FHLB Advances and other borrowings | 127,197 | 1,593 | 4.97 | % | 140,560 | 1,907 | 5.38 | % | ||||||||||||
| Subordinated notes | 19,561 | 230 | 4.66 | % | 19,490 | 231 | 4.70 | % | ||||||||||||
| Total interest bearing liabilities | 1,586,467 | 8,468 | 2.12 | % | 1,546,004 | 7,598 | 1.95 | % | ||||||||||||
| Non-interest bearing demand accounts | 688,138 | 736,313 | ||||||||||||||||||
| Other non-interest bearing liabilities | 25,947 | 23,279 | ||||||||||||||||||
| Total liabilities | 2,300,552 | 2,305,596 | ||||||||||||||||||
| Total shareholders' equity | 185,610 | 150,476 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,486,162 | $ | 2,456,072 | ||||||||||||||||
| Net interest income | $ | 22,968 | $ | 22,501 | ||||||||||||||||
| Interest rate spread 1 | 3.10 | % | 3.11 | % | ||||||||||||||||
| Net interest margin 2 | 3.81 | % | 3.78 | % | ||||||||||||||||
| Average interest earning assets to interest-bearing liabilities | 150.8 | % | 152.6 | % | ||||||||||||||||
| Notes: | ||||||||||||||||||||
| 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities | ||||||||||||||||||||
| 2 Net interest margin is the annualized net interest income divided by average interest-earning assets | ||||||||||||||||||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| (Dollar Amounts in thousands) | |||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||
| Assets: | |||||||||||||||||||
| Loans Receivable (net of PPP) | $ | 1,742,193 | $ | 78,761 | 6.02 | % | $ | 1,668,967 | $ | 70,374 | 5.64 | % | |||||||
| PPP Loans | 197 | 6 | 4.06 | % | 1,440 | 24 | 2.23 | % | |||||||||||
| Investment securities | 470,701 | 10,048 | 2.84 | % | 514,011 | 10,575 | 2.75 | % | |||||||||||
| Due from banks | 156,899 | 5,556 | 4.72 | % | 139,539 | 4,514 | 4.33 | % | |||||||||||
| Other | 7,945 | 650 | 10.90 | % | 11,268 | 716 | 8.50 | % | |||||||||||
| Total interest earning assets | 2,377,935 | 95,021 | 5.32 | % | 2,335,225 | 86,203 | 4.94 | % | |||||||||||
| Non-interest earning assets | 96,047 | 95,597 | |||||||||||||||||
| Total assets | $ | 2,473,982 | $ | 2,430,822 | |||||||||||||||
| Liabilities and equity: | |||||||||||||||||||
| Interest-bearing demand accounts | $ | 375,124 | $ | 1,348 | 0.48 | % | $ | 336,801 | $ | 875 | 0.35 | % | |||||||
| Money market accounts | 660,795 | 11,233 | 2.26 | % | 623,039 | 6,471 | 1.39 | % | |||||||||||
| Savings accounts | 249,013 | 2,586 | 1.38 | % | 251,588 | 1,735 | 0.92 | % | |||||||||||
| Certificates of deposit | 170,079 | 5,741 | 4.50 | % | 147,750 | 3,893 | 3.52 | % | |||||||||||
| Total interest-bearing deposits | 1,455,011 | 20,908 | 1.91 | % | 1,359,178 | 12,974 | 1.28 | % | |||||||||||
| FHLB Advances and other borrowings | 123,880 | 4,734 | 5.09 | % | 164,434 | 6,295 | 5.12 | % | |||||||||||
| Subordinated notes | 19,544 | 691 | 4.71 | % | 19,472 | 692 | 4.75 | % | |||||||||||
| Total interest bearing liabilities | 1,598,435 | 26,333 | 2.19 | % | 1,543,084 | 19,961 | 1.73 | % | |||||||||||
| Non-interest bearing demand accounts | 674,727 | 717,067 | |||||||||||||||||
| Other non-interest bearing liabilities | 26,701 | 22,988 | |||||||||||||||||
| Total liabilities | 2,299,863 | 2,283,139 | |||||||||||||||||
| Total shareholders' equity | 174,119 | 147,683 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,473,982 | $ | 2,430,822 | |||||||||||||||
| Net interest income | $ | 68,688 | $ | 66,242 | |||||||||||||||
| Interest rate spread 1 | 3.13 | % | 3.21 | % | |||||||||||||||
| Net interest margin 2 | 3.85 | % | 3.79 | % | |||||||||||||||
| Average interest earning assets to interest-bearing liabilities | 148.8 | % | 151.3 | % | |||||||||||||||
| Notes: | |||||||||||||||||||
| 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities | |||||||||||||||||||
| 2 Net interest margin is the annualized net interest income divided by average interest-earning assets | |||||||||||||||||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||
| SELECTED RATIOS AND OTHER DATA | |||||||||||
| (UNAUDITED) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Performance Ratios: | |||||||||||
| Return on average assets (1) | 0.52 | % | 1.47 | % | 1.12 | % | 1.17 | % | |||
| Return on average equity (1) | 6.93 | % | 24.03 | % | 15.87 | % | 19.28 | % | |||
| Interest rate spread (2) | 3.10 | % | 3.11 | % | 3.13 | % | 3.21 | % | |||
| Net interest margin (3) | 3.81 | % | 3.78 | % | 3.85 | % | 3.79 | % | |||
| Dividend payout ratio (4) | 40.44 | % | 14.33 | % | 18.79 | % | 18.18 | % | |||
| Non-interest income to average total assets | 0.67 | % | 0.52 | % | 0.63 | % | 0.53 | % | |||
| Non-interest expenses to average total assets | 2.57 | % | 2.21 | % | 2.52 | % | 2.31 | % | |||
| Average interest-earning assets to average interest-bearing liabilities | 150.76 | % | 152.60 | % | 148.77 | % | 151.33 | % | |||
| At | At | ||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| Asset Quality Ratios: | |||||||||||
| Non-performing assets to total assets | 0.44 | % | 0.18 | % | |||||||
| Non-performing loans to total loans | 0.62 | % | 0.25 | % | |||||||
| Allowance for credit losses to non-performing loans | 277.76 | % | 568.83 | % | |||||||
| Allowance for credit losses to total loans | 1.73 | % | 1.44 | % | |||||||
| Capital Ratios (5): | |||||||||||
| Total capital (to risk-weighted assets) | 14.89 | % | 14.16 | % | |||||||
| Tier 1 capital (to risk-weighted assets) | 13.64 | % | 12.91 | % | |||||||
| Common equity tier 1 capital (to risk-weighted assets) | 13.64 | % | 12.91 | % | |||||||
| Tier 1 capital (to average assets) | 10.06 | % | 9.42 | % | |||||||
| Notes: | |||||||||||
| (1) Annualized for the three and nine month periods ended September 30, 2024 and 2023, respectively. | |||||||||||
| (2) Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods. | |||||||||||
| (3) The net interest margin represents net interest income as a percent of average interest-earning assets for the periods. | |||||||||||
| (4) The dividend payout ratio represents dividends paid per share divided by net income per share. | |||||||||||
| (5) Ratios are for the Bank only. | |||||||||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||
| SELECTED OPERATING DATA | |||||||||||
| (UNAUDITED) | |||||||||||
| (Dollar Amounts in thousands except per share data) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Interest income | $ | 31,436 | $ | 30,099 | $ | 95,021 | $ | 86,203 | |||
| Interest expense | 8,468 | 7,598 | 26,333 | 19,961 | |||||||
| Net interest income | 22,968 | 22,501 | 68,688 | 66,242 | |||||||
| Provision for credit losses | 7,191 | 837 | 7,761 | 7,406 | |||||||
| Net interest income after provision for credit losses | 15,777 | 21,664 | 60,927 | 58,836 | |||||||
| Noninterest income | 4,174 | 3,220 | 11,667 | 9,676 | |||||||
| Noninterest expenses | 15,947 | 13,590 | 46,744 | 42,065 | |||||||
| Income before income taxes | 4,004 | 11,294 | 25,850 | 26,447 | |||||||
| Provision for income taxes | 788 | 2,256 | 5,131 | 5,093 | |||||||
| Net income | $ | 3,216 | $ | 9,038 | $ | 20,719 | $ | 21,354 | |||
| Basic and diluted earnings per share | $ | 0.57 | $ | 1.61 | $ | 3.67 | $ | 3.79 | |||
| Weighted average common shares outstanding | 5,653,904 | 5,629,642 | 5,643,591 | 5,628,036 | |||||||
| At | At | ||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| Book value per share | $ | 34.03 | $ | 29.26 | |||||||
| Net tangible book value per share (1) | $ | 32.93 | $ | 28.12 | |||||||
| Outstanding common shares | 5,674,126 | 5,651,311 | |||||||||
| Notes: | |||||||||||
| (1) Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by | |||||||||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||
| LOAN COMPOSITION | |||||||||||
| (UNAUDITED) | |||||||||||
| (Dollar Amounts in thousands) | |||||||||||
| At September 30, 2024 | At December 31, 2023 | ||||||||||
| Amount | Percent | Amount | Percent | ||||||||
| Commercial and industrial (a) | $ | 251,484 | 14.00 | % | $ | 273,562 | 15.66 | % | |||
| Commercial real estate | 1,334,580 | 74.30 | % | 1,259,356 | 72.08 | % | |||||
| Commercial real estate construction | 78,227 | 4.36 | % | 85,725 | 4.91 | % | |||||
| Residential real estate | 74,462 | 4.15 | % | 78,321 | 4.48 | % | |||||
| Home equity | 16,064 | 0.89 | % | 13,546 | 0.78 | % | |||||
| Consumer | 41,277 | 2.30 | % | 36,552 | 2.09 | % | |||||
| Total loans | 1,796,094 | 100.00 | % | 1,747,062 | 100.00 | % | |||||
| Allowance for loan losses | 31,023 | 25,182 | |||||||||
| Total loans, net | $ | 1,765,071 | $ | 1,721,880 | |||||||
| (a) - Includes PPP loans of: | $ | 181 | $ | 215 | |||||||
| ORANGE COUNTY BANCORP, INC. | |||||||||||||||||
| DEPOSITS BY ACCOUNT TYPE | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| (Dollar Amounts in thousands) | |||||||||||||||||
| At September 30, 2024 | At December 31, 2023 | ||||||||||||||||
| Amount | Percent | Average Rate | Amount | Percent | Average Rate | ||||||||||||
| Noninterest-bearing demand accounts | $ | 690,419 | 32.26 | % | 0.00 | % | $ | 699,203 | 34.30 | % | 0.00 | % | |||||
| Interest bearing demand accounts | 342,306 | 16.00 | % | 0.49 | % | 304,892 | 14.95 | % | 0.49 | % | |||||||
| Money market accounts | 707,065 | 33.04 | % | 2.27 | % | 584,976 | 28.69 | % | 2.04 | % | |||||||
| Savings accounts | 258,302 | 12.07 | % | 1.39 | % | 228,161 | 11.19 | % | 1.19 | % | |||||||
| Certificates of Deposit | 141,931 | 6.63 | % | 4.06 | % | 221,517 | 10.87 | % | 4.57 | % | |||||||
| Total | $ | 2,140,023 | 100.00 | % | 1.27 | % | $ | 2,038,749 | 100.00 | % | 1.29 | % | |||||
| ORANGE COUNTY BANCORP, INC. | |||||||
| NON-PERFORMING ASSETS | |||||||
| (UNAUDITED) | |||||||
| (Dollar Amounts in thousands) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Non-accrual loans: | |||||||
| Commercial and industrial | $ | 199 | $ | 556 | |||
| Commercial real estate | 10,725 | 2,692 | |||||
| Commercial real estate construction | - | - | |||||
| Residential real estate | 8 | 1,179 | |||||
| Home equity | - | - | |||||
| Consumer | - | - | |||||
| Total non-accrual loans | 10,932 | 4,427 | |||||
| Accruing loans 90 days or more past due: | |||||||
| Commercial and industrial | 237 | - | |||||
| Commercial real estate | - | - | |||||
| Commercial real estate construction | - | - | |||||
| Residential real estate | - | - | |||||
| Home equity | - | - | |||||
| Consumer | - | - | |||||
| Total loans 90 days or more past due | 237 | - | |||||
| Total non-performing loans | 11,169 | 4,427 | |||||
| Other real estate owned | - | - | |||||
| Other non-performing assets | - | - | |||||
| Total non-performing assets | $ | 11,169 | $ | 4,427 | |||
| Ratios: | |||||||
| Total non-performing loans to total loans | 0.62 | % | 0.25 | % | |||
| Total non-performing loans to total assets | 0.44 | % | 0.18 | % | |||
| Total non-performing assets to total assets | 0.44 | % | 0.18 | % | |||
| Notes: | |||||||
| 1 - Includes non-accruing TDRs: | $ | - | $ | 2,391 | |||
FAQ
What was Orange County Bancorp's (OBT) net income for Q3 2024?
How much did OBT's total deposits grow in Q3 2024?
What was the main reason for OBT's earnings decline in Q3 2024?
How much did OBT's trust and investment advisory income grow in Q3 2024?
