Orange County Bancorp, Inc. Announces Fourth Quarter and Full-Year Earnings for Fiscal 2024

Net Interest Income increased $3.4 million, or 3.8%, to $91.8 million for the year ended December 31, 2024, from $88.4 million for the year ended December 31, 2023Net Interest Margin grew 5 basis points to 3.83% for the year ended December 31, 2024, from 3.78% for the year ended December 31, 2023Total Loans grew $68.7 million, or 3.9%, to $1.8 billion at December 31, 2024 as compared to $1.7 billion at December 31, 2023.Total Deposits rose $114.6 million, or 5.6%, to $2.2 billion at December 31, 2024, from $2.0 billion at year-end 2023Book value per share increased $1.72, or 11.8%, to $16.35 at December 31, 2024, from $14.63 at December 31, 2023Trust and investment advisory income rose $470 thousand, or 16.7%, to $3.3 million for Q4 2024, as compared to $2.8 million for Q4 2023 MIDDLETOWN, N.Y., Feb. 05, 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 $7.2 million, or $0.63 per basic and diluted share, for the three months ended December 31, 2024. This compares with net income of $8.1 million, or $0.72 per basic and diluted share, for the three months ended December 31, 2023. The decrease in earnings per share, basic and diluted, was due primarily to an increase in non-interest expense offset by increases in net interest income and non-interest income during the current period. For the twelve months ended December 31, 2024, net income was $27.9 million, or $2.47 per basic and diluted share, as compared to $29.5 million, or $2.62 per basic and diluted share, for the twelve months ended December 31, 2023. Book value per share rose $1.72, or 11.8%, from $14.63 at December 31, 2023 to $16.35 at December 31, 2024. Tangible book value per share increased $1.74, or 12.4%, from $14.06 at December 31, 2023 to $15.80 at December 31, 2024 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were driven primarily by earnings during the twelve months ended December 31, 2024, offset by an increase in accumulated other comprehensive income (loss) associated with unrealized losses within the investment securities portfolio. “Orange Bank closed out 2024 with another solid quarter,” said Company President and CEO Michael Gilfeather. “Earnings of $7.2 million for the three months ended December 31, 2024 increased our full year total to $27.9 million. Though below our record $29.5 million in earnings the prior year, I am pleased by the results given challenges in the current interest rate environment and significant charges related to a non-performing participation loan. Additionally, given our historically conservative approach to credit quality, we have taken provisions to adequately reserve for charges associated with the previously disclosed participation loan. The economic environment in our region remains strong, enabling us to expand and improve the quality of our loan portfolio. For the year just ended, total loans grew nearly $70 million, or 4%, to $1.8 billion. Deposit growth was also robust during 2024, with deposits increasing $114.6 million, or 5.6%, to $2.2 billion at December 31, 2024. Even more impressive is the fact the majority of these new deposits were sourced internally as the result of a very targeted and strategic initiative. Low cost deposits and strong, high quality loan growth enabled us to expand net interest margin to 3.83% for the year ended December 31, 2024 from 3.78% during the year ended December 31, 2023. This is no small achievement given the uncertainty regarding interest rate and economic policy that characterized much of the year. Our Wealth Management business also maintained its consistent performance, contributing $3.3 million of trust and investment advisory income for the quarter, a $470 thousand, or 16.7%, increase over the same period last year. We have always viewed this division as an essential component of our business bank model, offering financial, advisory, estate and planning services for business customers and their families. Since inception, these services have allowed us to expand and retain our customer relationships, new and current, and increase overall customer satisfaction. As successful as this initiative has been, we saw an opportunity to leverage its success further through the promotion of David Dineen. David has been tasked with further aligning and expanding the capabilities of the Bank with the needs of our customers and we are very excited by its prospects. We have worked hard to deliver strong, consistent results, despite occasional challenges, and it is exciting to see the market recognize our efforts. This resulted in favorable stock price performance during the year that supported a 2-for-1 stock split in Q4, improving liquidity for shareholders. We always seek opportunities that benefit stakeholders, whether customers, shareholders or employees, and it is rewarding to achieve and implement them. As we end the year with another solid quarter, I want to 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.” Fourth Quarter and Fiscal Year 2024 Financial Review Net Income Net income for the fourth quarter of 2024 was $7.2 million, a decrease of $960 thousand, or 11.8%, from net income of $8.1 million for the fourth quarter of 2023. The decrease was primarily the result of increased non-interest expense over the same quarter last year. Net income for the twelve months ended December 31, 2024 was $27.9 million, as compared to $29.5 million for the same period in 2023. The decrease similarly reflected increased non-interest expense during the twelve months of 2024 over the same period in 2023. Net Interest Income For the three months ended December 31, 2024, net interest income rose $929 thousand, or 4.2%, to $23.1 million, versus $22.2 million during the same period last year. The increase was driven primarily by a $1.4 million increase in interest and fees on loans during the current period. For the twelve months ended December 31, 2024, net interest income reached $91.8 million, representing an increase of $3.4 million, or 3.8%, over the twelve months ended December 31, 2023. Total interest income rose $639 thousand, or 2.0%, to $32.2 million for the three months ended December 31, 2024, compared to $31.6 million for the three months ended December 31, 2023. The increase reflected a 5.4% growth in interest and fees associated with loans and a 3.2% increase in interest income from tax-exempt investment securities. For the twelve months ended December 31, 2024, total interest income rose $9.5 million, or 8.0%, to $127.2 million as compared to $117.8 million for the twelve months ended December 31, 2023. Total interest expense decreased $290 thousand during the fourth quarter of 2024, to $9.1 million, as compared to $9.4 million during the fourth quarter of 2023. The decrease represented the combined effect of management focus on low-cost deposits and a decrease in costs associated with brokered deposits and borrowed funds utilized as alternate sources of funding. Interest expense associated with Time Deposits, mainly brokered, decreased to $1.7 million during the fourth quarter of 2024 as compared to $2.5 million during the fourth quarter of 2023. Interest expense associated with FHLB advances drawn and other borrowings during the quarter totaled $1.9 million, as compared to $2.6 million during the fourth quarter of 2023. During the twelve months ended December 31, 2024, total interest expense rose $6.1 million, to $35.5 million, as compared to $29.4 million for the same period last year. 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 using discounted cash flows and supplemental qualitative considerations, including relevant economic considerations, portfolio concentrations, and other external factors, as well as evaluation of investment securities held by the Bank. The Company recognized net recovery within its provision for credit losses of $51 thousand for the three months ended December 31, 2024, as compared to a $462 thousand charge for the three months ended December 31, 2023. This recovery was due primarily to slower loan growth during the 2024 fourth quarter combined with the composition of loans closed during the quarter. The allowance for credit losses to total loans was 1.44% as of December 31, 2024 and 2023. For the twelve months ended December 31, 2024, the provision for credit losses totaled $7.7 million as compared to $7.9 million for the twelve months ended December 31, 2023. No reserves for investment securities were recorded during 2024. Non-Interest Income Non-interest income rose $562 thousand, or 15.0%, to $4.3 million for the three months ended December 31, 2024, compared to $3.7 million for the three months ended December 31, 2023. This growth was due to increased fee income within several of the Company’s fee income categories, including investment advisory income, trust income, and service charges on deposit accounts. For the twelve months ended December 31, 2024, non-interest income increased $2.6 million, to $16.0 million, as compared to $13.4 million for the twelve months ended December 31, 2023. Non-Interest Expense Non-interest expense was $18.5 million for the fourth quarter of 2024, reflecting an increase of $3.7 million, or 25.4%, as compared to $14.7 million for the same period in 2023. The increase in non-interest expense consisted primarily of increases in compensation costs, technology charges, and professional fees as well as the recognition of increased costs associated with the nonperforming loan participation and certain costs related to a fraudulent incident within one of our branches. As a result, our efficiency ratio increased to 67.4% for the three months ended December 31, 2024, from 56.9% for the same period in 2023. For the twelve months ended December 31, 2024, our efficiency ratio increased to 60.5% from 55.8% for the same period in 2023. Non-interest expense for the twelve months ended December 31, 2024 reached $65.2 million, reflecting an $8.4 million increase over non-interest expense of $56.8 million for the twelve months ended December 31, 2023. Income Tax Expense Provision for income taxes for the three months ended December 31, 2024 was $1.8 million, as compared to $2.6 million for the same period in 2023. For the twelve months ended December 31, 2024, the provision for income taxes was $6.9 million, as compared to $7.7 million for the twelve months ended December 31, 2023. The decrease for both 2024 periods was due to lower income before income taxes. Our effective tax rate for the three-month period ended December 31, 2024 was 20.1%, as compared to 24.1% for the same period in 2023. Our effective tax rate for the twelve-month period ended December 31, 2024 was 19.9%, as compared to 20.6% for the same period in 2023. Financial Condition Total consolidated assets increased $24.5 million, or approximately 1.0%, to $2.5 billion at December 31, 2024. The stability of the balance sheet reflects loan growth and continued increases in deposits and cash, as well as paydowns of borrowings during the current twelve-month period. Total cash and due from banks increased from $147.4 million at December 31, 2023, to $150.3 million at December 31, 2024, an increase of approximately $3.0 million, or 2.0%. This slight increase resulted primarily from increases in deposit balances and managed loan growth which elevated cash levels while reducing short-term borrowings. Total investment securities decreased $51.0 million, or 10.1%, from $504.5 million at December 31, 2023 to $453.5 million at December 31, 2024. The decrease continues to be driven primarily by investment maturities and paydowns during the twelve months of 2024. Total loans increased $68.7 million, or 3.9%, from $1.7 billion at December 31, 2023 to $1.8 billion at December 31, 2024. The increase was primarily driven by an increase of $102.7 million related to commercial real estate loans as well as a $3.8 million increase in home equity loans offset by decreases in all other loan categories during 2024. Total deposits increased $114.6 million, reaching $2.2 billion at December 31, 2024, from $2.0 billion at December 31, 2023. This increase was due primarily to $94.1 million of growth in money market accounts, $26.2 million increase in interest bearing demand accounts, and $42.9 million increase in savings accounts. The increases in deposit accounts were offset by a $48.1 million decrease in noninterest-bearing demand accounts and relatively stable balances in certificates of deposit, mainly associated with brokered deposits utilized by the Bank for short term funding purposes. Deposit composition at December 31, 2024 included 45.6% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represented approximately 39% of total deposits at December 31 2024, as compared to 37% of total deposits at December 31, 2023. FHLBNY short-term borrowings decreased by $111.0 million, or 49.4%, to $113.5 million as of December 31, 2024, as compared to $224.5 million at December 31, 2023. The decrease in borrowings was driven by increased deposits which outpaced loan growth in 2024 and allowed for paydowns of borrowings while maintaining adequate levels of cash at December 31, 2024. The decrease in borrowings reflects a strategic focus on actively managing liquidity sources and pursuing opportunities to reduce funding costs. Stockholders’ equity increased approximately $20.2 million during the year ended 2024, reaching $185.5 million at December 31, 2024 from $165.4 million at December 31, 2023. The increase was due primarily to $27.9 million of net income during the twelve months of 2024, partially reduced by dividends and an increase in unrealized losses of approximately $3.6 million, net of taxes, mainly related to the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss). At December 31, 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 10.23%, both common equity and Tier 1 capital to risk weighted assets were 14.12%, and total capital to risk weighted assets was 15.37%. Wealth Management At December 31, 2024, our Wealth Management Division, which includes trust and investment advisory, held $1.8 billion in assets under management or advisory, as compared to $1.6 billion at December 31, 2023, a 12.9% increase. Trust and investment advisory income for the year ended December 31, 2024 reached $12.2 million, representing an increase of 18.5%, or $1.9 million, as compared to $10.3 million for the year ended December 31, 2023. The breakdown of trust and investment advisory assets as of December 31, 2024 and December 31, 2023, respectively, is as follows: ORANGE COUNTY BANCORP, INC.SUMMARY OF AUM/AUA(UNAUDITED)(Dollar Amounts in thousands) At December 31, 2024 At December 31, 2023 Amount Percent Amount PercentInvestment Assets Under Management & Advisory$ 1,105,143 61.99% $ 909,384 57.56%Trust Asset Under Administration & Management677,723 38.01% 670,515 42.44%Total$ 1,782,866 100.00% $ 1,579,899 100.00% Loan Quality At December 31, 2024, the Bank had total non-performing loans of $6.3 million, or 0.35% of total loans. Total non-accrual loans represented approximately $6.3 million of loans as of December 31, 2024, compared to $4.4 million at December 31, 2023. The increase was primarily the result of one commercial real estate participation loan which remains non-performing and in non-accrual status at year end. 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 December 31, 2024, the Bank’s cash and due from banks totaled $150.3 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 December 31, 2024, the Bank’s investment in securities available for sale was $453.5 million, of which $104.7 million was not pledged as collateral or specifically designated to any borrowings. Additionally, as of December 31, 2024, the Bank’s overnight advance line capacity at the FHLBNY was $512.2 million, of which $101.0 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of December 31, 2024, the Bank’s unused borrowing capacity at the FHLBNY was $398.7 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 December 31, 2024, the Bank was not utilizing any available funding from the Federal Reserve. The Bank also considers brokered deposits an element of its deposit strategy. As of December 31, 2024, the Bank had brokered deposit arrangements with various terms totaling approximately $180.0 million. Non-GAAP Financial Measure ReconciliationsThe following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share. December 31, 2024 December 31, 2023 (Dollars in thousands except for share data)Tangible Common Equity: Total stockholders’ equity$ 185,531 $ 165,376 Adjustments: Goodwill(5,359) (5,359)Other intangible assets(821) (1,107)Tangible common equity $ 179,351 $ 158,910 Common shares outstanding11,350,158 11,302,622 Book value per common share$ 16.35 $ 14.63 Tangible book value per common share$ 15.80 $ 14.06 Tangible Assets Total assets$ 2,509,927 $ 2,485,468 Adjustments: Goodwill(5,359) (5,359)Other intangible assets(821) (1,107)Tangible assets$ 2,503,747 $ 2,479,002 Tangible common equity to tangible assets7.16% 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 $2.5 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, 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 LeslerEVP & Chief Financial Officermlesler@orangebanktrust.comPhone: (845) 341-5111 ORANGE COUNTY BANCORP, INC.CONDENSED CONSOLIDATED STATEMENTS OF CONDITION(UNAUDITED) (Dollar Amounts in thousands except per share data) December 31, 2024 December 31, 2023 ASSETS Cash and due from banks$ 150,334 $ 147,383 Investment securities - available-for-sale443,775 489,948 (Amortized cost $519,567 at December 31, 2024 and $560,994 at December 31, 2023) Restricted investment in bank stocks9,716 14,525 Loans1,815,751 1,747,062 Allowance for credit losses(26,077) (25,182) Loans, net1,789,674 1,721,880 Premises and equipment, net15,808 16,160 Accrued interest receivable6,680 5,934 Bank owned life insurance42,257 41,447 Goodwill5,359 5,359 Intangible assets821 1,107 Other assets45,503 41,725 TOTAL ASSETS$ 2,509,927 $ 2,485,468 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest bearing$ 651,135 $ 699,203 Interest bearing1,502,224 1,339,546 Total deposits2,153,359 2,038,749 FHLB advances, short term113,500 224,500 FHLB advances, long term10,000 10,000 Subordinated notes, net of issuance costs19,591 19,520 Accrued expenses and other liabilities27,946 27,323 TOTAL LIABILITIES2,324,396 2,320,092 STOCKHOLDERS' EQUITY Common stock, $0.25 par value; 30,000,000 shares authorized; 11,366,608 issued; 11,350,158 and 11,302,622 outstanding, at December 31, 2024 and December 31, 2023, respectively2,842 2,842 Surplus120,896 120,392 Retained Earnings129,919 107,361 Accumulated other comprehensive income (loss), net of taxes(67,751) (64,108)Treasury stock, at cost; 16,450 and 63,986 shares at December 31, 2024 and December 31, 2023, respectively(375) (1,111) TOTAL STOCKHOLDERS' EQUITY185,531 165,376 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 2,509,927 $ 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 December 31, Twelve Months Ended December 31, 2024 2023 2024 2023INTEREST INCOME Interest and fees on loans$27,263 $25,866 106,030 $96,264 Interest on investment securities: Taxable2,696 3,153 11,672 12,723 Tax exempt582 564 2,304 2,285 Interest on Federal funds sold and other1,665 1,984 7,221 6,498 TOTAL INTEREST INCOME32,206 31,567 127,227 117,770 INTEREST EXPENSE Savings and NOW accounts5,308 4,045 20,475 13,126 Time deposits1,658 2,500 7,399 6,393 FHLB advances and borrowings1,932 2,643 6,666 8,938 Subordinated notes230 230 921 922 TOTAL INTEREST EXPENSE9,128 9,418 35,461 29,379 NET INTEREST INCOME23,078 22,149 91,766 88,391 Provision for credit losses(51) 462 7,710 7,868 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES23,129 21,687 84,056 80,523 NONINTEREST INCOME Service charges on deposit accounts278 221 1,015 809 Trust income1,511 1,391 5,511 5,098 Investment advisory income1,772 1,422 6,738 5,241 Investment securities gains(losses)- - - 107 Earnings on bank owned life insurance264 259 815 984 Other480 450 1,893 1,180 TOTAL NONINTEREST INCOME4,305 3,743 15,972 13,419 NONINTEREST EXPENSE Salaries7,177 6,141 27,475 24,747 Employee benefits2,243 2,080 8,938 7,439 Occupancy expense1,243 1,147 4,790 4,761 Professional fees1,601 1,241 5,931 4,753 Directors' fees and expenses272 769 1,053 1,451 Computer software expense1,761 1,336 5,952 5,050 FDIC assessment330 380 1,308 1,403 Advertising expenses409 583 1,575 1,657 Advisor expenses related to trust income18 31 113 120 Telephone expenses181 178 746 712 Intangible amortization72 72 286 285 Other3,159 770 7,043 4,415 TOTAL NONINTEREST EXPENSE18,466 14,728 65,210 56,793 Income before income taxes8,968 10,702 34,818 37,149 Provision for income taxes1,804 2,578 6,935 7,671 NET INCOME$7,164 $8,124 27,883 $29,478 Basic and diluted earnings per share$ 0.63 $ 0.72 $ 2.47 $ 2.62 Weighted average shares outstanding11,322,045 11,264,908 11,303,118 11,258,300 ORANGE COUNTY BANCORP, INC.NET INTEREST MARGIN ANALYSIS(UNAUDITED)(Dollar Amounts in thousands) Three Months Ended December 31, 2024 2023 AverageBalance Interest AverageRate AverageBalance Interest AverageRateAssets: Loans Receivable (net of PPP)$ 1,813,263 $ 27,261 5.96% $ 1,725,560 $ 25,863 5.95%PPP Loans174 2 4.56% 222 3 5.36%Investment securities456,552 3,207 2.79% 471,955 3,480 2.93%Due from banks143,908 1,665 4.59% 149,312 1,984 5.27%Other9,033 71 3.12% 12,432 237 7.56%Total interest earning assets2,422,930 32,206 5.27% 2,359,481 31,567 5.31%Non-interest earning assets94,263 98,224 Total assets$ 2,517,193 $ 2,457,705 Liabilities and equity: Interest-bearing demand accounts$ 339,233 $ 402 0.47% $ 314,008 $ 409 0.52%Money market accounts698,335 3,967 2.25% 600,451 2,958 1.95%Savings accounts269,244 939 1.38% 228,078 678 1.18%Certificates of deposit162,610 1,658 4.05% 217,137 2,500 4.57%Total interest-bearing deposits1,469,422 6,966 1.88% 1,359,674 6,545 1.91%FHLB Advances and other borrowings132,908 1,932 5.77% 187,989 2,643 5.58%Subordinated notes19,579 230 4.66% 19,508 230 4.68%Total interest bearing liabilities1,621,909 9,128 2.23% 1,567,171 9,418 2.38%Non-interest bearing demand accounts679,727 719,535 Other non-interest bearing liabilities25,664 24,376 Total liabilities2,327,300 2,311,082 Total shareholders' equity189,893 146,623 Total liabilities and shareholders' equity$ 2,517,193 $ 2,457,705 Net interest income $ 23,078 $ 22,149 Interest rate spread 1 3.04% 2.92%Net interest margin 2 3.78% 3.72%Average interest earning assets to interest-bearing liabilities149.4% 150.6% Notes: 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities2 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) Twelve Months Ended December 31, 2024 2023 AverageBalance Interest AverageRate AverageBalance Interest AverageRateAssets: Loans Receivable (net of PPP)$ 1,760,057 $ 106,022 6.01% $ 1,683,232 $ 96,236 5.72%PPP Loans192 8 4.16% 1,133 28 2.47%Investment securities467,145 13,255 2.83% 503,410 14,055 2.79%Due from banks153,634 7,221 4.69% 142,003 6,498 4.58%Other8,218 721 8.75% 11,561 953 8.24%Total interest earning assets2,389,246 127,227 5.31% 2,341,339 117,770 5.03%Non-interest earning assets95,597 96,259 Total assets$ 2,484,843 $ 2,437,598 Liabilities and equity: Interest-bearing demand accounts$ 366,103 $ 1,751 0.48% $ 331,056 $ 1,284 0.39%Money market accounts670,231 15,199 2.26% 617,345 9,429 1.53%Savings accounts254,098 3,525 1.38% 245,663 2,413 0.98%Certificates of deposit168,202 7,399 4.39% 165,239 6,393 3.87%Total interest-bearing deposits1,458,634 27,874 1.91% 1,359,303 19,519 1.44%FHLB Advances and other borrowings126,149 6,666 5.27% 170,371 8,938 5.25%Subordinated notes19,553 921 4.70% 19,481 922 4.73%Total interest bearing liabilities1,604,336 35,461 2.20% 1,549,155 29,379 1.90%Non-interest bearing demand accounts675,983 717,689 Other non-interest bearing liabilities26,440 23,338 Total liabilities2,306,759 2,290,182 Total shareholders' equity178,084 147,416 Total liabilities and shareholders' equity$ 2,484,843 $ 2,437,598 Net interest income $ 91,766 $ 88,391 Interest rate spread 1 3.11% 3.13%Net interest margin 2 3.83% 3.78%Average interest earning assets to interest-bearing liabilities148.9% 151.1% Notes: 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities2 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 December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Performance Ratios: Return on average assets (1)1.14% 1.32% 1.12% 1.21%Return on average equity (1)15.09% 22.16% 15.66% 20.00%Interest rate spread (2)3.04% 2.92% 3.11% 3.13%Net interest margin (3)3.78% 3.72% 3.83% 3.78%Dividend payout ratio (4)19.76% 15.95% 19.05% 17.56%Non-interest income to average total assets0.68% 0.61% 0.64% 0.55%Non-interest expenses to average total assets2.93% 2.40% 2.62% 2.33%Average interest-earning assets to average interest-bearing liabilities149.39% 150.56% 148.92% 151.14% At At December 31, 2024 December 31, 2023 Asset Quality Ratios: Non-performing assets to total assets0.25% 0.18% Non-performing loans to total loans0.35% 0.25% Allowance for credit losses to non-performing loans413.99% 568.83% Allowance for credit losses to total loans1.44% 1.44% Capital Ratios (5): Total capital (to risk-weighted assets)15.37% 14.16% Tier 1 capital (to risk-weighted assets)14.12% 12.91% Common equity tier 1 capital (to risk-weighted assets)14.12% 12.91% Tier 1 capital (to average assets)10.23% 9.42% Notes: (1) Annualized for the three and twelve month periods ended December 31, 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 December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Interest income$ 32,206 $ 31,567 $ 127,227 $ 117,770Interest expense9,128 9,418 35,461 29,379Net interest income23,078 22,149 91,766 88,391Provision for credit losses(51) 462 7,710 7,868Net interest income after provision for credit losses23,129 21,687 84,056 80,523Noninterest income4,305 3,743 15,972 13,419Noninterest expenses18,466 14,728 65,210 56,793Income before income taxes8,968 10,702 34,818 37,149Provision for income taxes1,804 2,578 6,935 7,671Net income$ 7,164 $ 8,124 $ 27,883 $ 29,478 Basic and diluted earnings per share$ 0.63 $ 0.72 $ 2.47 $ 2.62Weighted average common shares outstanding11,322,045 11,264,908 11,303,118 11,258,300 At At December 31, 2024 December 31, 2023 Book value per share$ 16.35 $ 14.63 Net tangible book value per share (1)$ 15.80 $ 14.06 Outstanding common shares11,350,158 11,302,622 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 $821, and $1,107 in other intangible assets for December 31, 2024 and December 31, 2023, respectively. ORANGE COUNTY BANCORP, INC.LOAN COMPOSITION(UNAUDITED)(Dollar Amounts in thousands) At December 31, 2024 At December 31, 2023 Amount Percent Amount PercentCommercial and industrial (a)$ 251,313 13.84% $ 273,562 15.66%Commercial real estate1,362,054 75.01% 1,259,356 72.08%Commercial real estate construction80,993 4.46% 85,725 4.91%Residential real estate74,973 4.13% 78,321 4.48%Home equity17,365 0.96% 13,546 0.78%Consumer29,053 1.60% 36,552 2.09%Total loans1,815,751 100.00% 1,747,062 100.00%Allowance for loan losses26,077 25,182 Total loans, net$ 1,789,674 $ 1,721,880 (a) - Includes PPP loans of:$ 170 $ 215 ORANGE COUNTY BANCORP, INC.DEPOSITS BY ACCOUNT TYPE(UNAUDITED)(Dollar Amounts in thousands) At December 31, 2024 At December 31, 2023 Amount Percent Average Rate Amount Percent Average RateNoninterest-bearing demand accounts$ 651,135 30.24% 0.00% $ 699,203 34.30% 0.00%Interest bearing demand accounts331,115 15.38% 0.42% 304,892 14.95% 0.49%Money market accounts679,082 31.54% 2.15% 584,976 28.69% 2.04%Savings accounts271,014 12.59% 1.25% 228,161 11.19% 1.19%Certificates of Deposit221,013 10.26% 3.97% 221,517 10.87% 4.57%Total$ 2,153,359 100.00% 1.31% $ 2,038,749 100.00% 1.29% ORANGE COUNTY BANCORP, INC.NON-PERFORMING ASSETS(UNAUDITED) (Dollar Amounts in thousands) December 31, 2024 December 31, 2023 Non-accrual loans: Commercial and industrial$ 293 $ 556 Commercial real estate6,000 2,692 Commercial real estate construction- - Residential real estate6 1,179 Home equity- - Consumer- - Total non-accrual loans6,299 4,427 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 loans6,299 4,427 Other real estate owned- - Other non-performing assets- - Total non-performing assets$ 6,299 $ 4,427 Ratios: Total non-performing loans to total loans0.35% 0.25%Total non-performing loans to total assets0.25% 0.18%Total non-performing assets to total assets0.25% 0.18%

Orange County Bancorp, Inc. Announces Fourth Quarter and Full-Year Earnings for Fiscal 2024

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