Orange County Bancorp, Inc. Announces First Quarter Results

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 Summary

Net 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 Summary

Total 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, 2020

Balance

% 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, 2020

Balance

% 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. Peacock

EVP Chief Financial Officer

rpeacock@orangebanktrust.com

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 Ended

March 31,





Three Months Ended

March 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.

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