On July 31, 2024, Orange County Bancorp Inc (OBT, Financial) released its 8-K filing announcing its financial results for the second quarter of 2024. The company, which provides a range of banking services including personal and business loans, savings accounts, and wealth management, reported a net income of $8.2 million, or $1.46 per share, for the quarter ended June 30, 2024. This compares to a net income of $9.1 million, or $1.61 per share, for the same period in 2023.
Performance Overview
Despite a year-over-year decline in net income, Orange County Bancorp Inc (OBT, Financial) managed to exceed analyst estimates for earnings per share (EPS), which were projected at $1.35. The company's revenue for the quarter was $25.4 million, aligning with analyst expectations.
For the six months ended June 30, 2024, the company reported a net income of $17.5 million, or $3.10 per share, compared to $12.3 million, or $2.19 per share, for the same period in 2023. This increase was primarily driven by higher net interest income and non-interest income.
Key Financial Metrics
Orange County Bancorp Inc (OBT, Financial) saw a rise in net interest income, which increased by $1.5 million, or 6.7%, to $24.1 million for the three months ended June 30, 2024. This was primarily due to a $2.9 million increase in interest and fees on loans. Total interest income for the quarter rose by 9.3% to $32.5 million.
However, the company also experienced a significant increase in its provision for credit losses, which rose to $2.2 million for the quarter, compared to $214 thousand for the same period in 2023. This increase was attributed to a reserve associated with a specific non-accrual loan.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $8.2 million | $9.1 million |
| Earnings Per Share | $1.46 | $1.61 |
| Net Interest Income | $24.1 million | $22.6 million |
| Provision for Credit Losses | $2.2 million | $214 thousand |
Balance Sheet and Liquidity
As of June 30, 2024, total consolidated assets stood at $2.5 billion, a slight decrease from $2.5 billion at the end of 2023. Total deposits increased by $160.5 million to $2.2 billion, driven by growth in interest-bearing demand accounts and money market accounts.
The company's loan portfolio totaled $1.7 billion at the end of the quarter, with new loans funded amounting to $29.2 million. However, total loans decreased by $13.2 million from December 31, 2023, primarily due to loan repayments.
Wealth Management Performance
Orange County Bancorp Inc (OBT, Financial)'s Wealth Management division continued to perform strongly, with trust and investment advisory income rising by 15.9% to $3.0 million for Q2 2024. Assets under management or advisory increased by 8.6% to $1.7 billion as of June 30, 2024.
Commentary and Outlook
"Though it wasn’t without challenges, I am pleased to report another excellent quarter of financial performance," stated Company President and CEO Mike Gilfeather. "Strong earnings during the quarter were negatively impacted by a credit impairment charge on one of our participation loans, which resulted in a net increase in our provision for credit losses."
In summary, while Orange County Bancorp Inc (OBT, Financial) faced challenges such as increased credit loss provisions, the company demonstrated resilience with strong net interest income and deposit growth. The performance of the Wealth Management division further underscores the company's diversified revenue streams.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Orange County Bancorp Inc for further details.
