Orange County Bancorp, Inc. Announces First Quarter Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 9/4/2026

1. ZS
2. LULU
3. IOT
4. SPY
5. PATH
6. DOCU
7. ASAN
8. CIEN
9. GWRE
10. NVDA

- Total Q1 revenues increased 12.2% year-over-year to $14.1 million - Quarterly Net Income declined 16.5% to $2.4 million from the prior quarter due to a $665 thousand, or 124%, increase in provisions for loan losses - Average Loans up 20.5% year-over-year to $915.1 million - Average Demand Deposits up 29.9% year-over-year to $345.1 million - Total Assets up 19.8% versus same period last year to $1.36 billion - Tangible Book Value per Share of $26.45 up 15.0% from same period last year

April 27, 2020 3:41 PM EDT

MIDDLETOWN, N.Y., April 27, 2020 /PRNewswire/ -- Orange County Bancorp, Inc. (the "Company" - OTCQX: OCBI), parent of Orange Bank & Trust Co. (the "Bank") and Hudson Valley Investment Advisors, Inc. (HVIA), today announced net income of $2.4 million, or $0.54 per share, for the three months ended March 31, 2020. This compares with net income of $2.9 million, or $0.65 per share, for the three months ended December 31, 2019 and $2.2 million, or $0.50 per share, for the three months ended March 31, 2019.

"While I am pleased with the Bank's results for the quarter, the economic hardship and concerns our customers and the community are experiencing as a result of the COVID-19 shutdown dulls any sense of celebration," said Michael Gilfeather, President and Chief Executive Officer.  "In my opinion, the most remarkable thing about the quarter, though strong financially, was the commitment of our team to help clients effectively manage these challenging circumstances.

Our earnings for the first quarter reflected the same momentum with which we ended 2019.  Despite increasing loan loss reserves 124%, to $1.2 million, as a precautionary step due to potential impacts of COVID-19, we earned $2.4 million for the quarter, maintained strong capital levels, and ended the quarter with increased liquidity. These results reflect the strength of our balance sheet, diversity of earnings, and resilience of our bankers in serving clients despite the challenges of the health crisis. Had we not taken the prudent step of bolstering reserves, despite solid performance of our loan portfolio to date, we would have reported yet another record earnings quarter.

The performance was even more remarkable given our decision to participate in the federal Paycheck Protection Program (PPP), which was established late in the quarter to help small to midsize businesses retain employees during the economic shutdown. The program required us to quickly implement efforts to help small business clients with the loan application process. Though policies, rules and guidance for participation continued to evolve during the process, we were able to approve and fund 270 applications totaling in excess of $40 million, benefiting clients and their employees. We have continued to work with clients who missed the initial round of funding and have a number of applications in queue for the additional contribution approved by Congress.

We are also working with loan customers adversely affected by the shutdown to defer payments of interest and principal for 90 days to reduce the financial pressure created by this unprecedented crisis.  Through April 21st, we have 279 requests for payment deferrals on approximately $273 million of loans.

As we work through the presence and impacts of COVID-19, the Bank has continued to adapt and provide services in this fast-changing environment.  I am extremely proud of how our staff has responded despite the challenges of social distancing, the state/county lockdown, and telecommuting. I am further reassured by the unity and acts of selflessness we witness in our community every day, and confident we will come through this strengthened by the experience. While we had an exceptional first quarter, it is difficult to know if we will be able to maintain this momentum in the event of a prolonged shutdown. But as an essential business in the communities we serve, we remain open and committed to providing superior service to our clients, safe, flexible work places for our employees, and outstanding results for our shareholders."

Income Statement SummaryNet interest income for the three months ended March 31, 2020 increased $1.3 million, or 12.8%, to $11.4 million, compared with the three months ended March 31, 2019. The increase is primarily due to a $187.5 million, or 18.0%, increase in average interest earning assets.  The growth in earning assets more than offset the 13bp decline in average earning rates, which reflect today's historically low interest rate environment.  The increase in average interest earning assets was driven primarily by a $155.6 million, or 19.6%, increase in average loans outstanding. Net interest margin of 3.74% for the three months ended March 31, 2020 represents a 21 basis point, or 5.3%, decline versus 3.95% for the same period last year. The average cost of interest-bearing deposits for the three months ended March 31, 2020 was 0.63%, compared to 0.49% for the three months ended March 31, 2019, an increase of 14 basis points, or 28.6%. For the Bank and industry as a whole, 2019 was a period of increasing funding costs consistent with higher market interest rates during the year.  The rate picture changed dramatically in late March 2020, when the Bank began to reduce its deposit costs, as evidenced by a 7bp decline in cost of funds compared to the prior quarter.  Because these rate reductions began late in the quarter, their impacts will manifest themselves more in coming quarters.  Cost of funds also benefited from continued strong growth in non-interest bearing demand accounts, with a $79.3 million, or 29.9%, increase to an average of $345.1 million versus March 31, 2019. 

The bank's provision for loan losses was $1.2 million for the three months ended March 31, 2020, compared to $535 thousand the prior quarter, and $600 thousand for the three months ended March 31, 2019. The increase was taken in response to uncertainty surrounding loan performance due to the COVID-19 related shutdown of various business sectors.  Non-accrual loans, as a percent of total loans, was 0.17% as of March 31, 2020, same as the period ended December 31, 2019, and a 0.05% decrease from the period ended March 31, 2019. See the asset quality section below for additional information.

Non-interest income decreased $15 thousand, to $2.7 million, for the three months ended March 31, 2020, compared to the three months ended December 31, 2019, and increased $244 thousand versus the three months ended March 31, 2019. The quarter over quarter decline was due primarily to lower investment management income resulting from lower stock values at quarter end.  The year-over-year increase includes $137 thousand of realized losses on securities sales during the three months ended March 31, 2019.

Non-interest expense increased $78 thousand, to $9.9 million, for the three months ended March 31, 2020, compared to the three months ended December 31, 2019, and $672 thousand compared to the quarter ending March 31, 2019. The year-over-year increase was due primarily to a $275 thousand increase in salaries and employee benefits resulting from growth-related staffing.

The Company's effective income tax rate for the three months ended March 31, 2020 was 20.2%. This compares with 20.6% for the three months ended December 31, 2019, and 19.6% for the three months ended March 31, 2019.

Balance Sheet SummaryTotal assets increased $224 million, or 19.8%, to $1.36 billion at March 31, 2020 from $1.13 billion at March 31, 2019.  This was primarily comprised of increases of: $161.2 million in loans, $35.4 million in cash and cash equivalents, and $22.0 million in investment securities. The year-over-year increase in cash and cash equivalents was primarily due to increases in deposits, while the increase in loans was the result of $252.0 million of new loan originations and $33.4 million in purchases, partially offset by $124.4 million of net amortization and repayments on our existing portfolio.  For the quarter ended March 31, 2020, new loan originations totaled $55.2 million, draws on credit lines totaled $11.9 million and loan purchases were $21.2 million, partially offset by net amortization and loan repayments of $40.5 million.

Total liabilities increased $208.6 million, to $1.2 billion, at March 31, 2020 from $1.0 billion at March 31, 2019. This was due to a $215.2 million, or 21.6%, increase in total deposits partially offset by a $10 million reduction in FHLB advances.

The quarter saw continuation of deposit growth from non-interest-bearing commercial demand deposits ("DDA") and NOW accounts.  Growth in these deposits was $70.4 million, or 25.0%, for the one year period consistent with the Bank's strategy to grow value added business deposits with the support of advanced cash management services.  Commercial deposits were 49.3% of total deposits at March 31, 2020, compared to 46.8% at March 31, 2019.  This increase reflects strong response to our company-wide focus on business relationships. Total DDA and NOW balances were 46.6% of total deposits at March 31, 2020.

Total shareholders' equity increased $15.2 million, or 13.7%, to $126.3 million at March 31, 2020, from $111.1 million at March 31, 2019.  This increase was due to a $7.7 million increase in retained earnings and a $7.4 million improvement in the market value of securities available for sale. 

At March 31, 2020, the Company's book value per common share and tangible book value per common share were $28.13 and $26.45, respectively, compared to $24.75 and $23.00, respectively, at March 31, 2019. This represents increases of 13.6% and 15.0%, respectively.  At March 31, 2020, the Bank exceeded the "well capitalized" thresholds under applicable regulatory guidelines.

Asset Quality Summary

Non-performing loans increased to $1.59 million, or 0.17%, of total loans as of March 31, 2020, from $1.55 million, or 0.17%, of total loans as of December 31, 2019.  Non-performing loans decreased $82 thousand, from $1.67 million or 0.22% of total loans as of March 31, 2019.

Loans classified as substandard or doubtful increased $504 thousand, or 3.6%, to $14.5 million at March 31, 2020 from $14.0 million at December 31, 2019, and decreased $351 thousand, or 2.4%, from $14.9 million at March 31, 2019.  Watch rated loans decreased $1.1 million, or 9.8%, to $10.1 million at March 31, 2020 from $11.2 million at December 31, 2019. Delinquencies (inclusive of loans on non-accrual) increased to $13.4 million, or 1.42%, of total loans at March 31, 2020, from $8.2 million, or 0.92%, of total loans at December 31, 2019, and increased $9.8 million from $3.6 million, or 0.47%, of total loans at March 31, 2019.  The increase in delinquencies for the most recent quarter, relative to the quarter ended December 31, 2019, was concentrated in accounts 30-59 days past due, reflecting a small number of lending relationships brought current subsequent to quarter end through scheduled payments (totaling $5.6 million) or approved short-term deferments of principal and interest payments (totaling $1.3 million). The Bank is working proactively with customers to manage COVID-19 related forbearance requests, where necessary, with a view toward mitigating increases to reported near-term delinquencies through these efforts.

In response to the observed and anticipated economic impact of COVID-19, management has identified several asset categories and industry classifications deemed to be higher risk, and initiated active steps with customers to evaluate cash flows and, if necessary, provide payment relief from debt service obligations. This relief has been structured as 90-day deferments of principal and interest and effected broadly across the portfolio based on our analysis and direct feedback from customers. The composition of the Bank's loan portfolio spans commercial real estate loans ("CRE"), commercial and industrial loans ("C&I"), and consumer loans.  Concentrations across asset classes and industries with associated deferments processed and in process through April 21, 2020 are as follows:

Summary of Loan Portfolio Segments at 3/31/20 and Deferments to Date

(dollars in thousands)

Deferments as of April 21, 2020

Industry Classification

March 31, 2020Balance

% of Total

Loans

Outstanding

Balance

Loan Count

Deferred %

   Real Estate and Rental Leasing

$              466,048

49.6%

$         179,440

123

38.5%

   Healthcare and Social Assistance

108,650

11.6%

34,928

55

32.1%

   Management of Companies/Enterprise

53,553

5.7%

27,102

14

50.6%

   Construction

44,126

4.7%

-

-

0.0%

   Professional, Scientific, and Technical Services

25,408

2.7%

1,812

5

7.1%

   Manufacturing

23,778

2.5%

4,007

11

16.9%

   Wholesale and Retail Trade

34,306

3.6%

2,561

16

7.5%

   Finance and Insurance

16,180

1.7%

1,931

4

11.9%

   Administrative and Waste Management

15,615

1.7%

1,885

5

12.1%

   Lodging and Food Services

11,619

1.2%

2,590

8

22.3%

   Transportation and Warehousing

8,081

0.9%

1,309

3

16.2%

   Art, Entertainment, and Recreation

7,152

0.8%

54

1

0.8%

   Other Services

125,590

13.4%

15,840

34

12.6%

               TOTAL

$             940,106

100.0%

$         273,459

279

29.1%

Deferments as of April 21, 2020

Loan Portfolio Category

March 31, 2020Balance

% of Total

Loans

Outstanding

Balance

Loan Count

Deferred %

CRE:

   Multifamily

$              141,695

15.1%

$           53,352

27

37.7%

   Non-owner occupied

228,809

24.3%

109,100

48

47.7%

   Owner occupied

138,700

14.8%

48,224

53

34.8%

   Construction, development, land

58,550

6.2%

-

-

0.0%

C&I

237,440

25.3%

42,300

129

17.8%

Consumer:

   Non-residential

16,422

1.7%

-

-

0.0%

   Residential

118,490

12.6%

20,483

22

17.3%

                 TOTAL

$             940,106

100.0%

$         273,459

279

29.1%

Includes all deferment requests completed and in process as of April 21, 2020

At the outset of the pandemic, management identified certain industries, including hospitality, healthcare, and retail, believed to be at high risk and most susceptible to stress from a prolonged economic slowdown. Notwithstanding perceived industry risks, portfolio concentration and exposure across these segments is modest. Notably, Lodging and Food Services, which broadly reflects exposure to hotels, food and beverage, constitutes just $11.6MM of exposure or 1.2% of our total loan portfolio. Within this segment, payment deferrals have been processed for approximately 22.3% of total exposure.

CRE, representing 60.4% of the total loan portfolio on a collective basis, represents the largest asset class within the portfolio and has experienced the greatest concentration of payment deferments to date. This trend is consistent with management's expectations, although the CRE portfolio continues to demonstrate strong equity values on a loan level basis, the impact on cash flow from business closures would have a meaningful near-term impact on the cash available for debt service of investment properties. Given expectations for continued tenant demand across the Bank's geographic footprint, we expect cash flows to revert to normalized levels over the intermediate term.

At March 31, 2020, the Company's allowance for loan losses was 1.44% of total loans outstanding, an increase from 1.37% at December 31, 2019, and down from 1.47% at March 31, 2019.  Uncertainties about the current credit environment prompted an increase in the reserve ratio during the most recent quarter.  The Bank has historically maintained a high ratio of loan loss allowances relative to its peers, and will continue to prudently manage reserves through close monitoring of business conditions and high risk industries and thorough analysis of the profitability and cash flow of loan customers.

Trust and Advisory Summary

Our Trust and Asset Management businesses performed well during the quarter, increasing fee related revenue 6.4% compared to the same period last year. These businesses were able to show a 1% increase in fee revenue over the most recent quarter despite a material decline in equity values.  Combined, these businesses attracted new assets under management of over $18 million in the most recent quarter.  Close relationships and continuous outreach to our Trust and Asset Management customers provided valued support during this time of uncertainty and the nearly 20% decline in equity prices.

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 conservative banking practices, ongoing innovation and an unwavering commitment to its community and business clientele to more than $1.3 billion in Total Assets. In recent years, Orange Bank & Trust Company has added branches in Rockland and Westchester Counties. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and was acquired by the Company in 2012. For more information, visit orangebanktrust.com or hviaonline.com

For further information:Robert L. PeacockEVP Chief Financial Officer[email protected]Phone: (845) 341-5005

Orange County Bancorp, Inc.

Consolidated Statements of Condition (unaudited)

(dollar amounts in thousands except per share data)

March 31,

December 31,

March 31,

2020

2019

2019

ASSETS

Cash and due from banks

$           84,347

$               25,112

$            48,994

Investment securities - available-for-sale

274,896

254,915

252,879

Restricted investment in bank stocks

1,346

1,346

Loans

938,573

890,704

777,342

Allowance for loan losses

(13,481)

(12,275)

(11,457)

Loans, net

925,092

878,429

765,885

Premises and equipment

14,585

14,599

14,561

Accrued interest receivable

4,641

3,202

4,080

Cash surrender value of bank-owned life insurance

27,983

27,818

27,289

Goodwill

5,359

5,359

5,359

Intangible assets

2,178

2,249

2,463

Other assets

14,815

14,878

9,933

TOTAL ASSETS

$      1,355,242

$          1,227,907

$       1,131,443

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest bearing

$         363,214

$             335,469

$          276,580

Interest bearing

847,406

747,663

718,837

Total deposits

1,210,620

1,083,132

995,417

FHLB advances

-

5,000

10,000

Note payable

3,000

3,000

3,043

Accrued expenses and other liabilities

15,310

15,834

11,868

TOTAL LIABILITIES

1,228,930

1,106,966

1,020,328

STOCKHOLDERS' EQUITY

Common stock, $0.50 par value; 15,000,000 shares authorized;

issued and outstanding, 4,505,327 shares and 4,490,151 shares ,respectively

at March 31, 2020, 4,509,292 shares and 4,480,377 shares ,shares, respectively at

Dec 31, 1019

2,253

2,255

2,255

Surplus

84,542

84,926

84,701

Undivided profits

40,257

38,730

32,548

Accumulated other comprehensive loss, net of taxes

(263)

(4,044)

(7,705)

Treasury stock, at cost

(477)

(926)

(684)

TOTAL STOCKHOLDERS' EQUITY

126,312

120,941

111,115

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$      1,355,242

$          1,227,907

$       1,131,443

Book value per share

$             28.13

$                 26.99

$              24.75

Tangible book value per share

$             26.45

$                 25.30

$              23.00

 

Orange County Bancorp, Inc.

Consolidated Statements of Income (unaudited)

(dollar amounts in thousands except per share data)

Three Months EndedMarch 31,

Three Months EndedMarch 31, 

2020

2019

$ Change

% Change

INTEREST INCOME

Interest and fees on loans

$            11,090

$          9,404

$        1,686

17.9%

Interest on investment securities:

Taxable

1,335

1,264

71

5.6%

Tax exempt

126

231

(105)

(45.5%)

Interest on Federal funds sold and other

180

151

29

19.2%

-

TOTAL INTEREST INCOME

12,731

11,050

1,681

15.2%

INTEREST EXPENSE

Interest on savings and NOW accounts

956

489

467

95.5%

Interest on time deposits

281

289

(8)

(2.8%)

Interest on FHLB advances

10

78

(68)

(87.2%)

Interest on note payable

42

46

(4)

(8.7%)

TOTAL INTEREST EXPENSE

1,289

902

387

42.9%

NET INTEREST INCOME

11,442

10,148

1,294

12.8%

-

Provision for loan losses

1,200

600

600

100.0%

-

NET INTEREST INCOME AFTER PROVISION

10,242

9,548

694

7.3%

OTHER OPERATING INCOME

Service charges on deposit accounts

208

216

(8)

(3.7%)

Trust income

1,038

834

204

24.5%

Investment advisory income

1,042

1,122

(80)

(7.1%)

Investment securities gains

-

(137)

137

0.0%

Earnings on bank-owned life insurance

165

160

5

3.1%

Other

230

244

(14)

(5.7%)

TOTAL OTHER OPERATING INCOME

2,683

2,439

244

10.0%

OTHER OPERATING EXPENSES

Salaries

3,880

3,533

347

9.8%

Employee benefits

1,610

1,682

(72)

(4.3%)

Occupancy expense

938

910

28

3.1%

Professional fees

584

600

(16)

(2.7%)

Directors' fees and expenses

293

256

37

14.5%

Computer software expense

794

683

111

16.3%

FDIC assessment

168

107

61

57.0%

Advertising expenses

314

322

(8)

(2.5%)

Advisor expenses related to trust income

297

211

86

40.8%

Telephone expenses

128

113

15

13.3%

Intangible amortization

71

71

-

0.0%

Other

813

730

83

11.4%

TOTAL OTHER OPERATING EXPENSES

9,890

9,218

672

7.3%

Income before income taxes

3,035

2,769

266

9.6%

-

Provision for income taxes

613

543

70

12.9%

NET INCOME

$              2,422

$          2,226

$           196

8.8%

Earnings per share

$                0.54

$            0.50

$          0.04

8.8%

Cash dividends declared per share

$                0.20

$            0.20

$             -

Weighted average shares outstanding

4,486,351

4,485,779

573

 

Orange County Bancorp, Inc. and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

Three Months Ended March, 31

2020

2019

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Assets:

Loans Receivable

$           915,124

$     11,089

4.87%

$         759,512

$               9,404

5.02%

Investment securities

257,964

1,462

2.28%

258,711

1,495

2.34%

Other interest-earning assets

58,187

180

1.24%

25,616

151

2.39%

Total interest earning assets

1,231,275

12,731

4.16%

1,043,839

11,050

4.29%

Non-interest earning assets

76,445

64,175

  Total assets

$        1,307,720

$      1,108,014

Liabilities and equity:

NOW accounts

$           201,566

$          104

0.21%

$         181,694

$                    43

0.10%

Savings and money market accounts

527,978

852

0.65%

421,158

447

0.43%

Time deposits

87,996

281

1.28%

97,053

289

1.21%

Total interest-bearing deposits

817,540

1,237

0.61%

699,905

778

0.45%

FHLB Advances and other borrowings

5,326

52

3.92%

19,527

99

2.06%

Total interest bearing liabilities

822,866

1,289

0.63%

719,432

877

0.49%

Non-interest bearing deposits

345,146

265,795

Other non-interest bearing liabilities

16,872

13,710

  Total liabilities

1,184,884

998,937

  Total shareholders' equity

122,836

109,077

  Total liabilities and shareholders' equity

$        1,307,720

$      1,108,014

Net interest income

$     11,442

$             10,173

Interest rate spread1

3.53%

3.80%

Net interest margin2

3.74%

3.95%

Average interest earning assets to interest-bearing liabilities

149.6%

145.1%

Notes:

1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

2Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

Orange County Bancorp, Inc. and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

Three Months Ended March 31,

Three Months Ended December 31,

2020

2019

Average

Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Assets:

Loans Receivable

$           915,124

$     11,089

4.87%

$         871,066

$             10,860

4.99%

Investment securities

257,964

1,462

2.28%

256,817

1,604

2.50%

Other interest-earning assets

58,187

180

1.24%

53,475

217

1.62%

Total interest earning assets

1,231,275

12,731

4.16%

1,181,358

12,681

4.29%

Non-interest earning assets

76,445

68,515

  Total assets

$        1,307,720

$      1,249,873

Liabilities and equity:

NOW accounts

$           201,566

$          104

0.21%

$         175,014

$                    95

0.22%

Savings and money market accounts

527,978

852

0.65%

511,880

928

0.73%

Time deposits

87,996

281

1.28%

90,310

302

1.34%

Total interest-bearing deposits

817,540

1,237

0.61%

777,204

1,325

0.68%

FHLB Advances and other borrowings

5,326

52

3.92%

5,669

56

3.92%

Total interest bearing liabilities

822,866

1,289

0.63%

782,873

1,381

0.71%

Non-interest bearing deposits

345,146

333,107

Other non-interest bearing liabilities

16,872

14,434

  Total liabilities

1,184,884

1,130,414

  Total shareholders' equity

122,836

119,459

  Total liabilities and shareholders' equity

$        1,307,720

$      1,249,873

Net interest income

$     11,442

$             11,301

Interest rate spread1

3.53%

3.59%

Net interest margin2

3.74%

3.83%

Average interest earning assets to interest-bearing liabilities

149.6%

150.9%

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.

2Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

Orange County Bancorp, Inc.

Selected Financial Data (unaudited)

(Dollar Amounts in thousands except per share data)

For the Quarter Ended

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

Performance Ratios1

Return on average assets

0.74%

0.98%

1.03%

0.98%

0.81%

Return on average equity

7.93%

10.17%

10.67%

10.06%

8.28%

Interest rate spread

3.53%

3.60%

3.76%

3.71%

3.81%

Net interest margin

3.74%

3.83%

3.98%

3.91%

3.97%

Efficiency Ratio

70.02%

70.09%

67.29%

68.68%

71.54%

Noninterest income to average assets

0.83%

0.86%

0.90%

0.81%

0.80%

Noninterest expense to average assets

3.04%

3.14%

3.14%

3.11%

3.25%

Average interest-earning assets to average interest-bearing liabilities

149.63%

150.63%

147.32%

142.87%

142.89%

Average equity to average assets

9.39%

9.56%

9.63%

9.72%

9.84%

Dividend payout ratio

36.99%

30.97%

28.36%

31.87%

40.31%

As of the Quarter Ended

March 31, 2020

December 31,2019

September 30, 2019

June 30, 2019

March 31, 2019

Loans to Deposits

77.53%

82.23%

78.61%

76.80%

78.09%

Noninterest bearing deposits to total deposits

30.00%

30.97%

30.12%

28.58%

27.79%

Share Data:

Shares outstanding

4,490,151

4,480,368

4,467,747

4,481,122

4,490,047

Book value per common share

$     28.13

$          26.99

$         26.52

$         25.85

$         24.75

Tangible book value per common share2

$     26.45

$          25.30

$         24.80

$         24.12

$         23.00

Capital Ratios3

Tier 1 capital (to adjusted total assets)

9.13%

9.39%

8.95%

9.23%

9.41%

Common equity Tier 1 capital (to risk weighted assets)

12.29%

12.52%

12.16%

12.54%

13.01%

Tier 1 capital (to risk-weighted assets)

12.29%

12.52%

12.16%

12.54%

13.01%

Total capital (to risk-weighted assets)

13.53%

13.77%

13.41%

13.80%

14.27%

Notes:

1   Performance ratios are annualized.

2   Tangible book value per share is a non-GAAP measure and equals total shareholders' equity, less goodwill and other intangible assets, divided by shares outstanding.

3   Represents Orange County Bank & Trust ratios.

 

Orange County Bancorp, Inc.

Condensed Financial Information (unaudited)

(Dollar Amounts in thousands except per share data)

As of

Condensed Balance Sheets

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

Cash and Cash Equivalents

$          84,347

$          25,112

$         65,667

$          80,884

$           48,994

Total Investment Securities

276,242

256,261

258,970

252,843

252,879

Loans, net

925,092

878,429

855,899

811,892

765,885

Other Assets

69,561

68,105

63,801

63,513

63,684

Total Assets

$     1,355,242

$     1,227,907

$    1,244,337

$     1,209,132

$      1,131,443

Total Deposits 

$     1,210,620

$     1,083,132

$    1,104,578

$     1,072,514

$         995,417

FHLB Advances & note payable

3,000

8,000

8,013

8,028

13,043

Other Liabilities

15,310

15,834

13,250

12,772

11,868

Total Liabilities

1,228,930

1,106,966

1,125,841

1,093,315

1,020,328

Total Shareholder Equity

126,312

120,941

118,496

115,818

111,115

Total Liabilities and Shareholders' Equity

$     1,355,242

$     1,227,907

$    1,244,337

$     1,209,132

$      1,131,443

Three Months Ended

Condensed Income Statements

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

Interest Income

$          12,731

$          12,682

$         12,788

$          11,775

$           11,050

Interest Expense

1,289

1,381

1,353

1,205

902

Net Interest Income

11,442

11,301

11,435

10,569

10,149

Provision for Loan Loss

1,200

535

640

420

600

Noninterest Income

2,683

2,698

2,746

2,549

2,439

Noninterest Expense

9,890

9,812

9,570

9,167

9,218

Income before income tax expense

3,035

3,652

3,971

3,531

2,770

Income Tax Expense

613

753

810

719

543

Net income

$            2,422

$            2,899

$           3,161

$            2,812

$            2,227

Earnings per Share

$             0.54

$             0.65

$            0.71

$             0.63

$              0.50

 

Orange County Bancorp, Inc.

Loan Portfolio (unaudited)

(dollar amounts in thousands)

LOANS

March 31,

December 31,

September 30,

June 30,

March 31,

2020

2019

2019

2019

2019

Commercial:

       Commercial & industrial

$         240,155

$      222,229

$      220,157

$     212,866

$       190,323

       CRE* owner occupied

143,063

133,355

121,707

123,708

123,446

       CRE non-owner occupied

280,595

256,639

251,765

220,681

207,234

       CRE multifamily

136,862

144,328

143,308

144,387

140,510

       CRE construction

53,396

55,808

56,939

46,726

38,100

          Total commercial

854,071

812,359

793,875

748,368

699,614

Consumer:

       Residential real estate

50,923

52,478

49,519

48,340

45,982

       Home equity loans and lines

13,574

11,668

11,840

12,432

10,939

       Residential construction

5,217

13,937

13,276

14,960

16,344

       Other

16,873

2,436

1,846

1,586

2,006

          Total consumer

86,587

80,519

76,480

77,319

75,271

          TOTAL LOANS

940,658

892,878

870,355

825,687

774,885

       Deferrals and in-process

(2,085)

(2,174)

(2,042)

(1,947)

2,457

       Allowance for loan losses

(13,481)

(12,275)

(12,345)

(11,847)

(11,457)

          Loans, net

$         925,092

$      878,429

$      855,968

$     811,892

$       765,885

* CRE = Commercial Real Estate loans

 

Orange County Bancorp, Inc.

Deposit Portfolio (unaudited)

(dollar amounts in thousands)

DEPOSIT TREND

March 31, 2020

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

Demand Deposits

$      363,214

$      335,469

$     332,681

$      306,471

$       276,580

NOW

200,930

166,907

183,883

186,938

188,112

Money market accounts

433,081

369,507

365,501

356,072

312,885

Savings

124,085

122,592

132,110

129,852

122,119

Time

89,310

88,657

90,403

93,181

95,721

    Total deposits

$   1,210,620

$   1,083,132

$   1,104,578

$    1,072,514

$       995,417

DEPOSIT COMPOSITION and GROWTH ANALYSIS

Growth

March 31, 2020

% of Total

Deposits

March 31, 2019

Rate

% of Total

Deposits

$

%

Demand Deposits

$      363,214

30.0%

$     276,580

#

27.8%

$        86,634

31.3%

NOW

200,930

16.6%

188,112

#

18.9%

12,818

6.8%

Money market accounts

433,081

35.8%

312,885

#

31.4%

120,196

38.4%

Savings

124,085

10.2%

122,119

#

12.3%

1,966

1.6%

Time

89,310

7.4%

95,721

#

9.6%

(6,411)

(6.7%)

    Total deposits

$   1,210,620

100.0%

$     995,417

#

100.0%

$       215,203

21.6%

Commercial

$      596,437

49.3%

$     466,038

#

46.8%

$       130,399

28.0%

Consumer

396,611

32.8%

338,394

#

34.0%

58,217

17.2%

Municipal

217,572

18.0%

190,985

#

19.2%

26,587

13.9%

Total Deposits

$   1,210,620

100.0%

$     995,417

#

100.0%

$       215,203

21.6%

 

Orange County Bancorp, Inc.

Asset Quality Trends (unaudited)

(dollar amounts in thousands)

ASSET QUALITY

March 31,

December 31,

September 30,

June 30,

March 31,

2020

2019

2019

2019

2019

Non-performing loans:

       Commercial & industrial

$            495

$            502

$              603

$              72

$            159

       Commercial real estate

959

959

1,348

1,419

1,419

       Consumer--residential real estate

86

88

91

94

95

       Consumer--home equity loans and lines

51

-

-

47

-

          TOTAL NON-PERFORMING LOANS ("NPLs")

$         1,591

$         1,549

$            2,042

$         1,631

$         1,673

Delinquencies:

       30-59 days past due*

$       10,038

$         5,674

$            1,050

$            423

$         1,898

       60-89 days past due

60

360

352

85

47

       90+ days past due

1,766

683

576

185

125

       On non-accrual

1,505

1,461

1,951

1,537

1,578

          TOTAL PAST DUE LOANS

$       13,369

$         8,178

$            3,929

$         2,230

$         3,646

Troubled debt restructurings:

       On non-accrual (included in total NPLs above)

$            959

$            959

$            1,348

$         1,419

$         1,458

       On accrual

10,842

11,436

11,713

12,698

12,802

          TOTAL TROUBLED DEBT RESTRUCTURINGS

$       11,801

$       12,395

$          13,061

$       14,117

$       14,260

ALLOWANCE FOR LOAN LOSSES

$       13,481

$       12,275

$          12,345

$       11,847

$       11,457

Allowance for loan losses as a % of total loans

1.44%

1.31%

1.42%

1.43%

1.48%

Allowance for loan losses as a % of total NPLs

847.33%

792.45%

604.55%

726.54%

684.87%

Allowance for loan losses as a % of delinquent loans

100.84%

150.10%

314.20%

531.28%

314.19%

NPLs as a % of total loans

0.17%

0.17%

0.28%

0.20%

0.22%

Net charge-offs (recoveries)

$              (6)

$            583

$              142

$              29

$           (193)

Net charge-offs (recoveries) to average outstanding loans during the period 1

0.00%

0.06%

0.02%

0.00%

-0.03%

*

See body of release for comments on recent increase in 30+ day delinquencies.

 

Cision View original content:http://www.prnewswire.com/news-releases/orange-county-bancorp-inc-announces-first-quarter-results-301047776.html

SOURCE Orange County Bancorp, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Dividend, FDIC, Earnings