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Sep 30, 2023
Orange County Bancorp Q3 2023 Earnings Report
Net income increased due to higher net interest income and a decrease in provision for credit losses.
Key Takeaways
Orange County Bancorp reported a net income of $9.0 million for Q3 2023, a $1.2 million increase compared to Q3 2022. The increase was driven by growth in net interest income and a decrease in the provision for credit losses.
Net income increased by $1.2 million, or 15.1%, reaching $9.0 million.
Net interest margin increased by 8 basis points, or 2.2%, to 3.78%.
Total assets grew by $159.9 million, or 7.0%, to $2.5 billion.
Trust and investment advisory income rose by $338 thousand, or 15%, to $2.6 million.
Revenue by Segment
Forward Guidance
Orange County Bancorp remains guarded against the Fed’s ongoing inflation fighting efforts and its potential impact on regional economic activity, including the pressure rising rates place on our ability to gather deposits while maintaining strong net interest rate margins.
Positive Outlook
- Economic activity and loan demand from clients throughout operating region remains strong despite the significant increase in interest rates.
- The bank is well positioned to adjust loan growth in response to changing market and business conditions.
- There has been favorable deposit growth during the year primarily due to ongoing focus throughout the Bank to source organic deposits despite current interest rate pressure.
- The bank was able to expand net interest margin from 3.70% for the quarter ended September 30, 2022 to 3.78% for the quarter ended September 30, 2023.
- The bank has the vision, the balance sheet, deposit gathering ability, and dexterity to adapt to challenging and often changing circumstances.
Challenges Ahead
- The bank remains guarded against the Fed’s ongoing inflation fighting efforts
Historical Earnings Impact
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Avg. Return Before/After Earnings
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