Orange County Bancorp, Inc. Announces Strategic Realignment of Internal Divisions to Enhance its Wealth Management Services

Rhea-AI Summary

Orange County Bancorp (Nasdaq: OBT) announced a strategic realignment of its internal divisions, unifying its wealth management services under the new brand Orange Wealth Management. The reorganization combines Hudson Valley Investment Advisors and the bank's trust and private banking offerings under one umbrella, to be led by Senior Vice President David P. Dineen as Managing Director of Wealth Management.

The initiative aims to provide comprehensive wealth management solutions, integrating investment guidance, estate planning, and personal banking services. Hudson Valley Investment Advisors, acquired by the company in 2012 with $465 million in assets under management (AUM), has grown to manage over $1.7 billion in AUM. The strategic move positions the company to capitalize on the upcoming 'Great Wealth Transfer' of more than $80 trillion in assets, particularly focusing on high-net-worth individuals and business owners.

Positive

• Assets under management grew significantly from $465M to $1.7B since 2012
• Consolidation of services expected to increase wallet share and fee-based revenue
• Strategic positioning to capture portion of $80T 'Great Wealth Transfer' opportunity

Negative

• None.

Insights

Financial Services Analyst

The strategic realignment of Orange County Bancorp's wealth management divisions represents a calculated move to capitalize on several key market opportunities. The consolidation under the Orange Wealth Management brand addresses three critical market dynamics:

First, the integration of commercial banking with wealth management services targets a highly profitable demographic - business owners who represent the top 10% of wealth holders. This vertical integration strategy is particularly astute as it creates a comprehensive service model that can capture both business and personal banking relationships, potentially increasing customer retention and wallet share.

Second, the growth in assets under management from $465 million to $1.7 billion since 2012 (265% increase) demonstrates strong execution capability in wealth management. This track record adds credibility to their expansion strategy and suggests effective cross-selling to their commercial banking clients.

Third, the timing aligns perfectly with the approaching $80 trillion wealth transfer opportunity. Regional banks with integrated wealth management services are well-positioned to capture this transfer, as they can offer both the personalized service of boutique firms and the comprehensive capabilities of larger institutions.

The revenue implications are particularly noteworthy:

• Fee-based income from wealth management provides a stable revenue stream that complements traditional banking income
• Integrated services typically lead to higher client retention rates and increased revenue per client
• The unified brand approach should reduce marketing costs and improve cross-selling efficiency

However, execution risks exist. The success of this initiative will depend on seamless integration of services, technology implementation and maintaining personalized service levels while scaling operations. The appointment of David Dineen, with 30 years of industry experience, mitigates some of these operational risks.

This strategic move positions Orange County Bancorp competitively in the regional banking space, where many smaller institutions struggle to offer comprehensive wealth management services. The focus on entrepreneurial clients and their unique needs demonstrates market awareness and could create a defendable niche in their operating region.

Wealth and asset management offerings rebranded as Orange Wealth Management

MIDDLETOWN, N.Y., Jan. 29, 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., today announced a realignment of internal divisions designed to promote its wealth management services to better meet the evolving needs of its clients. The Company’s asset management arm, Hudson Valley Investment Advisors, Inc., and trust and private banking offerings will be collectively known as Orange Wealth Management.

The oversight of Orange Wealth Management will be led by Senior Vice President, David P. Dineen. Dineen is currently the head of the Bank’s wealth service sales and will now serve as the Managing Director of Wealth Management. Dineen has successfully overseen the trust and private banking divisions of the Bank since his hiring in February 2022 and has more than 30 years of banking and wealth management experience, making him uniquely qualified for this new role.

“We recognize that our entrepreneurial clients frequently prioritize business expansion, which can sometimes overshadow their personal financial needs,” said Dineen. “By unifying our core divisions, we can provide a comprehensive wealth management solution, seamlessly integrating investment guidance, estate planning, and personal banking services. This team approach truly embodies the Bank’s tagline: ‘Guiding your business, Growing your wealth’.”

Orange Wealth Management will provide clients:

• Personalized Attention: In-person and cell-phone access to a dedicated team of advisors who understand their unique financial circumstances and goals.
• Enhanced Convenience: A full suite of wealth management services that bring together old-fashioned service with cutting-edge technology.
• Seamless Integration: A cohesive experience that seamlessly integrates personal and business banking with wealth management services unlike the banking industry’s traditional siloed approach to wealth management and commercial banking.
  

“We are thrilled to have David lead this important initiative,” said Michael Gilfeather, President and CEO of Orange Bank & Trust Co. “His extensive experience in the wealth management industry will be invaluable as we continue to expand our offerings and provide exceptional service to our clients through Orange Wealth Management.”

He continued, “Nationwide, a significant majority of the top 10 percent built their wealth through business ownership. This fact aligns perfectly with our business, since the majority of our Private Banking clientele have also built their wealth through entrepreneurship. With the ‘Great Wealth Transfer’ underway, involving the transfer of more than $80 trillion in assets, this strategic realignment positions us to capitalize on this unprecedented opportunity to garner an increasing wallet share within our marketplace by serving the evolving needs of high-net-worth individuals and their families with generations in mind.”

The Company purchased Hudson Valley Investment Advisors (HVIA) in 2012 with $465 million in assets under management (AUM). Today, HVIA has more than $1.7 billion in AUM serving the owners, managers and directors of their business banking clientele as well as individual and institutional investors. This vertical provides the company with a consistent and growing fee-based revenue stream that is synergistic with its traditional commercial bank spread based income.

About Orange County Bancorp, Inc

Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Co. and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Co. is an independent bank that began with the vision of 14 founders more than 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.5 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, N.Y. 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, 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.

Contact: Candice Varetoni
AVP Marketing Officer
Orange Bank & Trust Company
cvaretoni@orangebanktrust.com

FAQ

What is Orange County Bancorp's new wealth management brand called?

Orange County Bancorp has rebranded its wealth management services as Orange Wealth Management, combining Hudson Valley Investment Advisors and the bank's trust and private banking offerings.

How much has OBT's assets under management grown since acquiring HVIA in 2012?

OBT's assets under management have grown from $465 million in 2012 to over $1.7 billion currently, representing significant growth in their wealth management division.

Who will lead Orange Wealth Management for OBT?

David P. Dineen, Senior Vice President, will lead Orange Wealth Management as Managing Director of Wealth Management. He has been overseeing trust and private banking divisions since February 2022.

What is the size of the 'Great Wealth Transfer' opportunity that OBT is targeting?

OBT is positioning itself to capture a portion of the 'Great Wealth Transfer,' which involves the transfer of more than $80 trillion in assets.

What services will Orange Wealth Management provide under OBT?

Orange Wealth Management will provide personalized attention with dedicated advisors, enhanced convenience through integrated technology, and seamless integration of personal and business banking with wealth management services.