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Orange County Bancorp, Inc. Announces First Quarter 2025 Earnings

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Orange County Bancorp reported Q1 2025 earnings with net income of $8.7 million ($0.77 per share), showing a 6.3% decrease from Q1 2024's $9.3 million. Despite this decline, the bank demonstrated strong fundamentals with:

Key metrics: - Net interest margin increased to 3.95% (up 31 basis points) - Total deposits grew 6.0% to $2.3 billion - Total loans increased 2.1% to $1.9 billion - Book value per share rose 8.2% to $17.69

The bank's wealth management division showed impressive growth, with trust and investment advisory income rising 19.2% to $3.4 million. Total assets under management reached $1.7 billion. The decrease in net income was primarily due to the absence of a one-time $1.9 million recovery from Signature Bank debt sale in 2024. The bank maintained strong asset quality with non-performing loans at just 0.33% of total loans.

Orange County Bancorp ha riportato i risultati del primo trimestre 2025 con un utile netto di 8,7 milioni di dollari (0,77 dollari per azione), registrando una diminuzione del 6,3% rispetto ai 9,3 milioni del primo trimestre 2024. Nonostante questo calo, la banca ha mostrato solidi fondamentali con:

Indicatori chiave:
- Margine di interesse netto aumentato al 3,95% (in crescita di 31 punti base)
- Depositi totali cresciuti del 6,0% a 2,3 miliardi di dollari
- Prestiti totali aumentati del 2,1% a 1,9 miliardi di dollari
- Valore contabile per azione salito dell'8,2% a 17,69 dollari

La divisione di gestione patrimoniale della banca ha mostrato una crescita notevole, con i ricavi da trust e consulenza agli investimenti in aumento del 19,2% a 3,4 milioni di dollari. Gli asset totali gestiti hanno raggiunto 1,7 miliardi di dollari. La diminuzione dell'utile netto è principalmente dovuta all'assenza di una recupero una tantum di 1,9 milioni di dollari derivante dalla vendita di debito di Signature Bank nel 2024. La banca ha mantenuto un'elevata qualità degli attivi, con prestiti non performanti pari solo allo 0,33% del totale prestiti.

Orange County Bancorp reportó sus ganancias del primer trimestre de 2025 con un ingreso neto de 8,7 millones de dólares (0,77 dólares por acción), mostrando una disminución del 6,3% respecto a los 9,3 millones del primer trimestre de 2024. A pesar de esta caída, el banco demostró fundamentos sólidos con:

Métricas clave:
- Margen de interés neto incrementado a 3,95% (subió 31 puntos básicos)
- Depósitos totales crecieron un 6,0% hasta 2,3 mil millones de dólares
- Préstamos totales aumentaron un 2,1% hasta 1,9 mil millones de dólares
- Valor contable por acción subió un 8,2% a 17,69 dólares

La división de gestión patrimonial del banco mostró un crecimiento impresionante, con ingresos por fideicomisos y asesoría de inversiones aumentando un 19,2% hasta 3,4 millones de dólares. Los activos totales bajo gestión alcanzaron 1,7 mil millones de dólares. La disminución en el ingreso neto se debió principalmente a la ausencia de una recuperación única de 1,9 millones de dólares por la venta de deuda de Signature Bank en 2024. El banco mantuvo una alta calidad de activos con préstamos en mora representando solo el 0,33% del total de préstamos.

오렌지 카운티 뱅코프는 2025년 1분기 순이익 870만 달러(주당 0.77달러)를 보고했으며, 이는 2024년 1분기 930만 달러 대비 6.3% 감소한 수치입니다. 이러한 감소에도 불구하고 은행은 강력한 기본 체력을 보여주었습니다:

주요 지표:
- 순이자마진이 3.95%로 31베이시스 포인트 상승
- 총 예금 6.0% 증가하여 23억 달러
- 총 대출 2.1% 증가하여 19억 달러
- 주당 장부가치 8.2% 상승하여 17.69달러

은행의 자산관리 부문은 신탁 및 투자 자문 수입이 19.2% 증가한 340만 달러로 인상적인 성장을 보였습니다. 총 운용자산은 17억 달러에 달했습니다. 순이익 감소는 주로 2024년에 있었던 Signature Bank 부채 매각에서 발생한 일회성 190만 달러 회복이 없었기 때문입니다. 은행은 총 대출 대비 부실채권 비율이 0.33%에 불과할 정도로 강한 자산 건전성을 유지했습니다.

Orange County Bancorp a annoncé ses résultats du premier trimestre 2025 avec un bénéfice net de 8,7 millions de dollars (0,77 dollar par action), soit une baisse de 6,3 % par rapport aux 9,3 millions du premier trimestre 2024. Malgré cette diminution, la banque a démontré de solides fondamentaux avec :

Principaux indicateurs :
- La marge d'intérêt nette a augmenté à 3,95 % (en hausse de 31 points de base)
- Les dépôts totaux ont augmenté de 6,0 % pour atteindre 2,3 milliards de dollars
- Les prêts totaux ont progressé de 2,1 % pour atteindre 1,9 milliard de dollars
- La valeur comptable par action a augmenté de 8,2 % pour atteindre 17,69 dollars

La division gestion de patrimoine de la banque a connu une croissance remarquable, avec des revenus en fiducie et en conseil en investissement en hausse de 19,2 % à 3,4 millions de dollars. Les actifs totaux sous gestion ont atteint 1,7 milliard de dollars. La baisse du bénéfice net est principalement due à l'absence d'une récupération exceptionnelle de 1,9 million de dollars liée à la vente de dettes de Signature Bank en 2024. La banque a maintenu une forte qualité d'actifs, avec des prêts non performants représentant seulement 0,33 % du total des prêts.

Orange County Bancorp meldete für das erste Quartal 2025 einen Nettogewinn von 8,7 Millionen US-Dollar (0,77 US-Dollar je Aktie), was einem Rückgang von 6,3 % gegenüber den 9,3 Millionen im ersten Quartal 2024 entspricht. Trotz dieses Rückgangs zeigte die Bank starke Fundamentaldaten mit:

Wichtigste Kennzahlen:
- Nettozinsmarge stieg auf 3,95 % (plus 31 Basispunkte)
- Gesamteinlagen wuchsen um 6,0 % auf 2,3 Milliarden US-Dollar
- Gesamtkredite stiegen um 2,1 % auf 1,9 Milliarden US-Dollar
- Buchwert je Aktie stieg um 8,2 % auf 17,69 US-Dollar

Die Vermögensverwaltungsabteilung der Bank verzeichnete ein beeindruckendes Wachstum, wobei die Einnahmen aus Treuhand- und Anlageberatung um 19,2 % auf 3,4 Millionen US-Dollar stiegen. Das verwaltete Gesamtvermögen erreichte 1,7 Milliarden US-Dollar. Der Rückgang des Nettogewinns ist hauptsächlich auf das Fehlen einer einmaligen Erholung von 1,9 Millionen US-Dollar aus dem Verkauf von Signature Bank-Schulden im Jahr 2024 zurückzuführen. Die Bank behielt eine starke Vermögensqualität bei, mit notleidenden Krediten von nur 0,33 % der Gesamtkredite.

Positive
  • Net interest margin increased 31 basis points to 3.95% YoY
  • Total deposits grew $128.3M (6.0%) to $2.3B QoQ
  • Trust and investment advisory income up 19.2% YoY to $3.4M
  • Book value per share increased 8.2% to $17.69 QoQ
  • Total loans grew $38.5M (2.1%) to $1.9B QoQ
  • Cost of deposits decreased to 1.29% from 1.34% YoY
  • Non-interest income rose 18.2% to $4.4M YoY
Negative
  • Net income decreased 6.3% to $8.7M YoY
  • Non-interest expense increased 7.7% to $16.5M YoY
  • Assets under management decreased 2.4% to $1.7B QoQ
  • Higher effective tax rate of 22.9% vs 20.0% YoY

Insights

OBT posted solid Q1 results with core growth masked by prior one-time gain; fundamental banking metrics show strong operational execution.

Orange County Bancorp's Q1 2025 results reveal strong fundamental performance despite the headline 6.3% decrease in net income to $8.7 million. This decline is entirely attributable to a one-time $1.9 million recovery in Q1 2024 (worth approximately $0.17 per share) from Signature Bank debt—excluding this non-recurring item, Q1 2025 earnings would have actually exceeded the prior year.

The bank demonstrated impressive operational execution with net interest margin expanding to 3.95%, up 31 basis points year-over-year. This substantial margin improvement directly enhances the bank's core earning power. Deposit growth was particularly robust at 6.0% quarter-over-quarter (reaching $2.3 billion), while simultaneously reducing cost of deposits to 1.29% from 1.34%—a rare accomplishment in the current rate environment that indicates strong deposit franchise value.

The efficiency ratio improved to 58.9% from 60.5%, showing better expense management despite continued growth investments. Non-interest income rose 18.2%, with the wealth management division's 19.2% revenue growth providing valuable income diversification.

Credit quality remains strong with non-performing loans at just 0.33% of total loans. Book value per share increased 8.2% to $17.69 during the quarter, reflecting both earnings retention and reduced unrealized investment portfolio losses.

The capital position remains robust with all regulatory ratios well above well-capitalized thresholds, providing ample support for the 2.1% quarterly loan growth while maintaining conservative underwriting standards. The bank's demonstrated ability to grow core earnings while improving key performance metrics indicates strong operational momentum.

Highlights include:

  • Net interest margin of 3.95% for the quarter ended March 31, 2025 increased 31 basis points, or 8.5%, versus 3.64% for the quarter ended March 31, 2024
  • Total Deposits grew $128.3 million, or 6.0%, reaching $2.3 billion at March 31, 2025 as compared to $2.2 billion at December 31, 2024
  • Total Loans of $1.9 billion at March 31, 2025 increased $38.5 million, or 2.1%, from $1.8 billion at December 31, 2024
  • Net Income reached $8.7 million for the three months ended March 31, 2025 representing a decrease of $586 thousand, or 6.3%, as compared to $9.3 million for the three months ended March 31, 2024
  • Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025 from $2.9 million for the quarter ended March 31, 2024
  • Book value per share increased $1.34, or 8.2%, reaching $17.69 at March 31, 2025 as compared to $16.35 at December 31, 2024

MIDDLETOWN, N.Y., April 30, 2025 (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 $8.7 million, or $0.77 per basic and diluted share, for the quarter ended March 31, 2025. This represents a $586 thousand, or 6.3%, decrease in net income as compared to $9.3 million, or $0.82 per basic and diluted share, for the quarter ended March 31, 2024. The year-over-year comparison reflects a reduction in provision for credit losses on loans and increases in net interest income and total noninterest income in the most recent quarter, while the same period last year benefitted from a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt previously written off. The prior year’s gain had an approximately $.17 per share impact on first quarter earnings.   Non-interest income for the quarter ended March 31, 2025 rose $670 thousand, or 18.2%, to $4.4 million, as compared to $3.7 million for the quarter ended March 31, 2024.

Book value per share rose $1.34, or 8.2%, from $16.35 at December 31, 2024 to $17.69 at March 31, 2025. Tangible book value per share also increased $1.35, or 8.5%, from $15.80 at December 31, 2024 to $17.15 at March 31, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were the result of earnings growth during the quarter combined with a decrease in unrealized losses in the investment portfolio attributed to interest rate changes during the first quarter of 2025.

“2025 began with anticipation of a deregulatory, pro-business agenda from the incoming administration that would accelerate economic growth, but saw the quarter marked instead by uncertainty and market volatility stemming from government cost cutting and tariff policy,” said Orange Bank President and CEO, Michael Gilfeather. “Despite this unexpected shift, I am pleased to announce Orange Bank posted another excellent quarterly performance. For the three months ended March 31, 2025, the Company earned $8.7 million. This was a $586 thousand, or 6.3%, decrease versus the same quarter in 2024, but reflects solid growth in net interest income and noninterest income and a meaningful reduction in our provision for credit losses excluding a $1.9 million gain we realized last year as the result of recovery from the sale of Signature Bank subordinated debt previously written off. Excluding last year’s one-time gain, earnings for Q1 2025 would have exceeded Q1 2024.

While we hope for the return of more stable, predictable markets, for the benefit of local economic activity and businesses, our clients continue to identify compelling long-term investment opportunities for us to finance. Total loans grew $38.5 million, or 2.1%, for the quarter, from $1.8 billion at December 31, 2024. As discussed in prior quarters, we continue to employ a conservative underwriting posture that guides the prioritization, sizing, and pricing of loans to ensure we thoughtfully manage risk while providing our clients with access to capital.

The quarter also saw strong deposit growth; up $128.3 million, or 6.0%, to $2.3 billion at March 31, 2025 from $2.2 billion at December 31, 2024. Growth in deposits remains a priority for the Bank, and effective management of their costs has long been a strategic and differentiating strength of our organization. Our cost of deposits for the first quarter of 2025 was 1.29%, down compared to 1.34% for the first quarter of 2024.  

Also embedded in our operational results is solid expansion of net interest margin, which ended the quarter at 3.95%. This is a 31 basis points, or 8.5%, increase, over the same quarter last year, once again reflecting management of our overall process and drive to source appropriately priced deposits.

Our Wealth Management division also continued its strong recent performance in the quarter. Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025, from $2.9 million for the quarter ended March 31, 2024. This division not only provides the Bank an important, diversified source of revenue, but also offers clients additional, value-added service that leads to stronger, longer-lasting business relationships.

Though it’s difficult to predict when the current period of market volatility and uncertainty will subside, I remain confident in our team and Company’s ability to adapt and meet our clients’ needs. This is a testament to strategic initiatives and execution we’ve committed to the past several years and is only possible through the dedication of our employees, the continued trust of our clients, and the support of our stockholders. I thank you all.”

First Quarter 2025 Financial Review

Net Income

Net income for the first quarter of 2025 was $8.7 million, a decrease of $586 thousand, or 6.3%, from net income of $9.3 million for the first quarter of 2024. This decrease was the result of a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt in the first quarter of 2024 offset by higher net interest income and noninterest income as well as a reduced provision for credit losses on loans during the first quarter of 2025 as compared to the first quarter of 2024.  

Net Interest Income

For the three months ended March 31, 2025, net interest income rose $2.0 million, or 9.4%, to $23.6 million versus $21.6 million during the same period last year reflecting an increase in total interest income of $834 thousand and a decrease in total interest expense of $1.2 million mainly due to lower borrowing costs during the current period.

Total interest income rose $834 thousand, or 2.7%, to $31.9 million for the three months ended March 31, 2025, compared to $31.1 million for the three months ended March 31, 2024. The increase reflected 6.6% growth in interest and fees associated with loans which was offset by decreases in interest income associated with investment securities, fed funds, and balances held at correspondent banks.

Total interest expense decreased $1.2 million during the first quarter of 2025, to $8.3 million, as compared to $9.5 million in the first quarter of 2024. Interest expense from FHLB advances and borrowings during the current quarter totaled $931 thousand as compared to $2.3 million during the first quarter of 2024. The decrease primarily represented the effect of lower average balances and costs associated with FHLB borrowings. Interest expense associated with savings and NOW accounts totaled $4.9 million during the first quarter of 2025 as compared to $4.6 million during the first quarter of 2024. Interest expense related to brokered deposits totaled $2.1 million during the first quarter of 2025 as compared to $2.3 million during the first quarter of 2024.

Provision for Credit Losses

Provision for credit losses amounted to $202 thousand for the three months ended March 31, 2025 and a net credit of $1.6 million for the three months ended March 31, 2024. The increase in the provision for credit losses was primarily attributable to the investment recovery during 2024. The allowance for credit losses to total loans was 1.42% as of March 31, 2025 versus 1.44% as of December 31, 2024. No additional reserves for investment securities were recorded during 2025 or 2024, respectively.

Non-Interest Income

Non-interest income rose $670 thousand, or 18.2%, to $4.4 million for the three months ended March 31, 2025 as compared to $3.7 million for the three months ended March 31, 2024. This growth was related to increased fee income within each of the Company’s fee income categories, including investment advisory, trust, and service charges on deposit accounts.

Non-Interest Expense

Non-interest expense was $16.5 million for the first quarter of 2025, reflecting an increase of $1.2 million, or 7.7%, as compared to $15.3 million for the same period in 2024. The increase in non-interest expense for the current three-month period continues to reflect the Company’s investment in growth. This investment consists primarily of increases in compensation, occupancy, and information technology. Our efficiency ratio, which is a non-GAAP measurement, decreased to 58.9% for the three months ended March 31, 2025, from 60.5% for the same period in 2024.  

Income Tax Expense

Provision for income taxes for the three months ended March 31, 2025 was $2.6 million, representing an increase of $257 thousand, or 11.0%, as compared to $2.3 million for the three months ended March 31, 2024. The amount was directly related to provisions associated with the Company’s earnings as well as the effect of certain tax adjustments for the quarter. Our effective tax rate for the three-month period ended March 31, 2025 was 22.9%, as compared to 20.0% for the same period in 2024.  

Financial Condition

Total consolidated assets increased by $50.2 million, or 2.0%, and grew from $2.5 billion at December 31, 2024 to $2.6 billion at March 31, 2025. The increase reflected increases in cash and loans during the first quarter of 2025.

Total cash and due from banks increased from $150.3 million at December 31, 2024, to $164.2 million at March 31, 2025, an increase of approximately $13.8 million, or 9.2%. This increase resulted mainly from higher levels of deposit balances.

Total investment securities fell $4.2 million, or 0.9%, from $453.4 million at December 31, 2024 to $449.3 million at March 31, 2025. The decrease was driven primarily by investment securities maturities during the first three months of 2025.

Total loans increased $38.5 million, or 2.1%, to $1.9 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The increase was due primarily to growth of $19.7 million in CRE loans, including additional growth of $16.7 million in CRE Construction loans as well as $4.9 million in commercial and industrial loans.

Total deposits increased $128.3 million, to $2.3 billion at March 31, 2025 from approximately $2.2 billion at December 31, 2024. This increase was due primarily to $50.8 million of growth in interest bearing demand deposits; $24.3 million increase in money market accounts; $11.5 million growth in savings accounts; and $38.8 million increase in time deposits mainly associated with brokered deposits which the Bank utilized to increase cash balances and reduce borrowings during the first quarter. The increases in deposits also included a $2.9 million increase in noninterest-bearing demand deposit accounts during the quarter. Deposit composition at March 31, 2025 included 45.4% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 39% at March 31, 2025 and December 31, 2024, respectively.

FHLBNY short-term borrowings were $20.5 million at March 31, 2025 down from $113.5 million at December 31, 2024. The decrease in borrowings was driven mainly by increased deposits which outpaced loan growth during the quarter and allowed for paydowns of borrowings while maintaining consistent levels of cash at March 31, 2025.

Stockholders’ equity increased $15.8 million, or 8.5%, to $201.3 million at March 31, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of $8.7 million in net income and a decrease in unrealized losses of approximately $7.7 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first quarter of 2025 offset by dividends of $1.5 million.

At March 31, 2025, 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 10.41%, both common equity and Tier 1 capital-to-risk-weighted-assets were 14.16%, and total-capital-to-risk-weighted-assets was 15.42%.  

Wealth Management

At March 31, 2025, our Wealth Management Division, which includes trust and investment advisory, totaled $1.7 billion in assets under management or advisory as compared to $1.8 billion at December 31, 2024, reflecting a decrease of $43.0 million, or 2.4%. Trust and investment advisory income for the quarter ended March 31, 2025 totaled $3.4 million and represented an increase of 19.2%, or $553 thousand, as compared to $2.9 million for the quarter ended March 31, 2024.

The breakdown of trust and investment advisory assets as of March 31, 2025 and December 31, 2024, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
 At March 31, 2025 At December 31, 2024
 Amount Percent Amount Percent
Investment Assets Under Management & Advisory$1,105,692  63.55% $1,105,143  61.99%
Trust Asset Under Administration & Management 634,177  36.45%  677,723  38.01%
Total$1,739,869  100.00% $1,782,866  100.00%
        

Loan Quality

At March 31, 2025, the Bank had total non-performing loans of $6.2 million, or 0.33% of total loans. Total non-accrual loans represented approximately $6.2 million of loans at March 31, 2025, compared to $6.3 million at December 31, 2024.

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 $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of March 31, 2025, the Bank’s cash and due from banks totaled $164.2 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of March 31, 2025, the Bank’s investment in securities available for sale was $443.8 million, of which $80.3 million was not pledged as collateral. Additionally, as of March 31, 2025, the Bank’s overnight advance line capacity at the Federal Home Loan Bank of New York was $631.0 million, of which $96.4 million was used to collateralize municipal deposits and $10.0 million was utilized for overnight and long term FHLBNY advances. As of March 31, 2025, the Bank’s unused borrowing capacity at the FHLBNY was $524.6 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. At March 31, 2025, the Bank also held $91.0 million of collateral at the Federal Reserve Bank which could be utilized to provide additional funding through the discount window.

The Bank also considers brokered deposits as an element of its deposit strategy. As of March 31, 2025, the Bank had brokered deposit arrangements with various terms totaling $220.0 million.

 
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.
    
 March 31, 2025 December 31, 2024
 (Dollars in thousands except for share data)
Tangible Common Equity:   
Total stockholders’ equity$201,324  $185,531 
Adjustments:   
Goodwill (5,359)  (5,359)
Other intangible assets (750)  (821)
Tangible common equity$195,215  $179,351 
Common shares outstanding 11,383,738   11,350,158 
Book value per common share$17.69  $16.35 
Tangible book value per common share$17.15  $15.80 
    
Tangible Assets   
Total assets$2,560,128  $2,509,927 
Adjustments:   
Goodwill (5,359)  (5,359)
Other intangible assets (750)  (821)
Tangible assets$2,554,019  $2,503,747 
Tangible common equity to tangible assets 7.64%  7.16%
    
NOTE: Share data and related information has been adjusted for the effect of the 2 for 1 stock split in January 2025
    

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 $2.6 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

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, tariffs, 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)
      
   March 31, 2025 December 31, 2024
      
  ASSETS   
      
Cash and due from banks$164,173  $150,334 
Investment securities - available-for-sale 443,797   443,775 
(Amortized cost $509,906 at March 31, 2025 and $519,567 at December 31, 2024)  
Restricted investment in bank stocks 5,525   9,716 
Loans 1,854,254   1,815,751 
Allowance for credit losses (26,373)  (26,077)
 Loans, net 1,827,881   1,789,674 
      
Premises and equipment, net 15,904   15,808 
Accrued interest receivable 11,002   6,680 
Bank owned life insurance 42,516   42,257 
Goodwill 5,359   5,359 
Intangible assets 750   821 
Other assets 43,221   45,503 
      
  TOTAL ASSETS$2,560,128  $2,509,927 
      
  LIABILITIES AND STOCKHOLDERS' EQUITY   
      
Deposits:   
 Noninterest bearing$654,061  $651,135 
 Interest bearing 1,627,637   1,502,224 
  Total deposits 2,281,698   2,153,359 
      
FHLB advances, short term 20,500   113,500 
FHLB advances, long term 10,000   10,000 
Subordinated notes, net of issuance costs 19,609   19,591 
Accrued expenses and other liabilities 26,997   27,946 
      
  TOTAL LIABILITIES 2,358,804   2,324,396 
      
  STOCKHOLDERS' EQUITY   
      
Common stock, $0.25 par value; 30,000,000 shares authorized;   
 11,391,755 and 11,366,608 issued; 11,383,738 and 11,350,158 outstanding,  
 at March 31, 2025 and December 31, 2024, respectively 2,848   2,842 
Surplus 121,546   120,896 
Retained Earnings 137,148   129,919 
Accumulated other comprehensive income (loss), net of taxes (60,019)  (67,751)
Treasury stock, at cost; 8,017 and 16,450 shares at March 31,   
 2025 and December 31, 2024, respectively (199)  (375)
  TOTAL STOCKHOLDERS' EQUITY 201,324   185,531 
      
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,560,128  $2,509,927 
      


 
ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
    For Three Months Ended March 31,
    2025 2024
INTEREST INCOME   
 Interest and fees on loans$27,314  $25,614 
 Interest on investment securities:   
  Taxable 2,664   3,226 
  Tax exempt 576   568 
 Interest on Federal funds sold and other 1,353   1,665 
       
  TOTAL INTEREST INCOME 31,907   31,073 
       
INTEREST EXPENSE   
 Savings and NOW accounts 4,894   4,577 
 Time deposits 2,224   2,414 
 FHLB advances and borrowings 931   2,251 
 Subordinated notes 230   230 
  TOTAL INTEREST EXPENSE 8,279   9,472 
       
  NET INTEREST INCOME 23,628   21,601 
       
Provision for credit losses 202   (1,640)
  NET INTEREST INCOME AFTER   
   PROVISION FOR CREDIT LOSSES 23,426   23,241 
       
NONINTEREST INCOME   
 Service charges on deposit accounts 290   235 
 Trust income 1,674   1,312 
 Investment advisory income 1,766   1,575 
 Earnings on bank owned life insurance 259   242 
 Other 367   322 
  TOTAL NONINTEREST INCOME 4,356   3,686 
       
NONINTEREST EXPENSE   
 Salaries 6,905   6,738 
 Employee benefits 2,450   2,122 
 Occupancy expense 1,277   1,161 
 Professional fees 1,347   1,436 
 Directors' fees and expenses 306   322 
 Computer software expense 1,982   1,235 
 FDIC assessment 330   418 
 Advertising expenses 389   364 
 Advisor expenses related to trust income 22   33 
 Telephone expenses 207   187 
 Intangible amortization 71   72 
 Other 1,208   1,222 
  TOTAL NONINTEREST EXPENSE 16,494   15,310 
       
 Income before income taxes 11,288   11,617 
       
Provision for income taxes 2,584   2,327 
  NET INCOME$8,704  $9,290 
       
Basic and diluted earnings per share$0.77  $0.82 
       
Weighted average shares outstanding 11,331,884   11,269,874 
       


 
ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
            
 Three Months Ended March 31,
 2025 2024
 Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets:           
Loans Receivable (net of PPP)$1,829,917  $27,311  6.05% $1,738,199  $25,611  5.91%
PPP Loans 163   3  7.46%  209   3  5.76%
Investment securities 441,776   3,123  2.87%  481,530   3,432  2.86%
Due from banks 146,657   1,353  3.74%  149,596   1,665  4.46%
Other 7,979   117  5.95%  10,894   362  13.33%
Total interest earning assets 2,426,492   31,907  5.33%  2,380,428   31,073  5.24%
Non-interest earning assets 101,960       94,647     
Total assets$2,528,452      $2,475,075     
            
Liabilities and equity:           
Interest-bearing demand accounts$357,057  $403  0.46% $360,287  $437  0.49%
Money market accounts 685,827   3,634  2.15%  620,028   3,355  2.17%
Savings accounts 269,019   857  1.29%  235,829   785  1.34%
Certificates of deposit 222,992   2,224  4.04%  209,642   2,414  4.62%
Total interest-bearing deposits 1,534,895   7,118  1.88%  1,425,786   6,991  1.97%
FHLB Advances and other borrowings 85,011   931  4.44%  167,484   2,251  5.39%
Subordinated notes 19,597   230  4.76%  19,526   230  4.72%
Total interest bearing liabilities 1,639,503   8,279  2.05%  1,612,796   9,472  2.36%
Non-interest bearing demand accounts 667,564       668,439     
Other non-interest bearing liabilities 29,907       28,446     
Total liabilities 2,336,974       2,309,681     
Total shareholders' equity 191,478       165,394     
Total liabilities and shareholders' equity$2,528,452      $2,475,075     
            
Net interest income  $23,628      $21,601   
Interest rate spread1    3.28%     2.88%
Net interest margin2    3.95%     3.64%
Average interest earning assets to interest-bearing liabilities 148.0%      147.6%    
            
Notes:           
1The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
2Net 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 March 31,
   2025 2024
Performance Ratios:   
Return on average assets (1)1.38% 1.50%
Return on average equity (1)18.18% 22.47%
Interest rate spread (2)3.28% 2.88%
Net interest margin (3)3.95% 3.64%
Dividend payout ratio (4)16.92% 13.95%
Non-interest income to average total assets0.17% 0.15%
Non-interest expenses to average total assets0.65% 0.62%
Average interest-earning assets to average interest-bearing liabilities148.00% 147.60%
      
   At At
   March 31, 2025 March 31, 2024
Asset Quality Ratios:   
Non-performing assets to total assets0.24% 0.24%
Non-performing loans to total loans0.33% 0.33%
Allowance for credit losses to non-performing loans425.03% 440.86%
Allowance for credit losses to total loans1.42% 1.47%
      
Capital Ratios (5):   
Total capital (to risk-weighted assets)15.42% 14.74%
Tier 1 capital (to risk-weighted assets)14.16% 13.49%
Common equity tier 1 capital (to risk-weighted assets)14.16% 13.49%
Tier 1 capital (to average assets)10.41% 9.72%
      
Notes:    
(1) Annualized for the three month periods ended March 31, 2025 and 2024, 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 March 31,
 2025 2024
Interest income$31,907  $31,073 
Interest expense 8,279   9,472 
Net interest income 23,628   21,601 
Provision for credit losses 202   (1,640)
Net interest income after provision for credit losses 23,426   23,241 
Noninterest income 4,356   3,686 
Noninterest expenses 16,494   15,310 
Income before income taxes 11,288   11,617 
Provision for income taxes 2,584   2,327 
Net income$8,704  $9,290 
    
Basic and diluted earnings per share$0.77  $0.82 
Weighted average common shares outstanding 11,331,884   11,269,874 
    
 At At
 March 31, 2025 December 31, 2024
Book value per share$17.69  $16.35 
Net tangible book value per share (1)$17.15  $15.80 
Outstanding common shares 11,383,738   11,350,158 
    
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 $5,359 in goodwill and $750, and $821 in other intangible assets for March 31, 2025 and December 31, 2024, respectively.
    


 
ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
 At March 31, 2025 At December 31, 2024
 Amount Percent Amount Percent
Commercial and industrial (a)$247,284  13.34% $242,390  13.35%
Commercial real estate 1,381,719  74.52%  1,362,054  75.01%
Commercial real estate construction 97,703  5.27%  80,993  4.46%
Residential real estate 73,090  3.94%  74,973  4.13%
Home equity 18,211  0.98%  17,365  0.96%
Consumer 36,247  1.95%  37,976  2.09%
Total loans 1,854,254  100.00%  1,815,751  100.00%
Allowance for loan losses 26,373     26,077   
Total loans, net$1,827,881    $1,789,674   
        
(a) - Includes PPP loans of:$159    $170   
        


 
ORANGE COUNTY BANCORP, INC.
DEPOSITS BY ACCOUNT TYPE
(UNAUDITED)
(Dollar Amounts in thousands)
 At March 31, 2025 At December 31, 2024
 Amount Percent Average Rate Amount Percent Average Rate
Noninterest-bearing demand accounts$654,061  28.66% 0.00% $651,135  30.24% 0.00%
Interest bearing demand accounts 381,878  16.74% 0.48%  331,115  15.38% 0.42%
Money market accounts 703,384  30.83% 2.14%  679,082  31.54% 2.15%
Savings accounts 282,563  12.38% 1.23%  271,014  12.59% 1.25%
Certificates of Deposit 259,812  11.39% 3.93%  221,013  10.26% 3.97%
Total$2,281,698  100.00% 1.34% $2,153,359  100.00% 1.31%
            


 
ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
 (Dollar Amounts in thousands)
    
 March 31, 2025 December 31, 2024
    
Non-accrual loans:   
Commercial and industrial$200  $293 
Commercial real estate 6,000   6,000 
Commercial real estate construction -   - 
Residential real estate 5   6 
Home equity -   - 
Consumer -   - 
Total non-accrual loans 6,205   6,299 
Accruing loans 90 days or more past due:   
Commercial and industrial -   - 
Commercial real estate -   - 
Commercial real estate construction -   - 
Residential real estate -   - 
Home equity -   - 
Consumer -   - 
Total loans 90 days or more past due -   - 
Total non-performing loans 6,205   6,299 
Other real estate owned -   - 
Other non-performing assets -   - 
Total non-performing assets$6,205  $6,299 
    
Ratios:   
Total non-performing loans to total loans 0.33%  0.35%
Total non-performing loans to total assets 0.24%  0.25%
Total non-performing assets to total assets 0.24%  0.25%
Net-chargeoffs to total loans 0.00%  0.00%
    

FAQ

What was Orange County Bancorp (OBT) earnings per share in Q1 2025?

Orange County Bancorp reported earnings of $0.77 per basic and diluted share for Q1 2025, compared to $0.82 per share in Q1 2024. The decrease was mainly due to a one-time gain from Signature Bank debt recovery in the previous year.

How much did Orange County Bancorp (OBT) deposits grow in Q1 2025?

Orange County Bancorp's deposits grew by $128.3 million (6.0%) in Q1 2025, reaching $2.3 billion as of March 31, 2025, up from $2.2 billion at December 31, 2024.

What is Orange County Bancorp's (OBT) net interest margin for Q1 2025?

Orange County Bancorp's net interest margin was 3.95% for Q1 2025, representing an increase of 31 basis points (8.5%) compared to 3.64% in Q1 2024.

How much did Orange County Bancorp (OBT) loan portfolio grow in Q1 2025?

Orange County Bancorp's total loans increased by $38.5 million (2.1%) to $1.9 billion in Q1 2025, primarily driven by growth in CRE loans and commercial and industrial loans.

What is Orange County Bancorp's (OBT) book value per share as of March 2025?

Orange County Bancorp's book value per share increased to $17.69 as of March 31, 2025, representing an increase of $1.34 (8.2%) from $16.35 at December 31, 2024.

How did Orange County Bancorp's (OBT) wealth management division perform in Q1 2025?

Orange County Bancorp's trust and investment advisory income increased by $553,000 (19.2%) to $3.4 million in Q1 2025, with total assets under management of $1.7 billion as of March 31, 2025.
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Orange Cnty Bancorp Inc

NASDAQ:OBT

OBT Rankings

#2247 Ranked by Market Cap
#1465 Ranked by Dividends

OBT Latest News

Feb 21, 2025
Orange County Bancorp, Inc. Declares Cash Dividend
Feb 5, 2025
Orange County Bancorp, Inc. Announces Fourth Quarter and Full-Year Earnings for Fiscal 2024
Jan 29, 2025
Orange County Bancorp, Inc. Announces Strategic Realignment of Internal Divisions to Enhance its Wealth Management Services
Jan 2, 2025
Orange County Bancorp, Inc. Adjusts Stock Split Record Date as US Markets Close on January 9 in Honor of National Day of Mourning for Former President Jimmy Carter
Dec 26, 2024
Orange County Bancorp, Inc. Declares Two-for-One Stock Split

OBT Stock Data

262.51M
9.55M
19.62%
45.55%
0.79%
Banks - Regional
State Commercial Banks
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United States
MIDDLETOWN