Orange County Bancorp (OBT) Q4 2024 earnings summary

Executive summary

• Net interest income rose 3.8% year-over-year to $91.8M for 2024; net interest margin increased to 3.83% from 3.78%.

• Net income for 2024 was $27.9M ($2.47/share), down from $29.5M ($2.62/share) in 2023, mainly due to higher non-interest expense.

• Total loans grew 3.9% to $1.8B; deposits increased 5.6% to $2.2B at year-end 2024.

• Book value per share rose 11.8% to $16.35; tangible book value per share up 12.4% to $15.80.

• Wealth management AUM/AUA increased 12.9% to $1.8B; trust and investment advisory income up 18.5% to $12.2M.

Financial highlights

• Q4 2024 net income was $7.2M ($0.63/share), down 11.8% from Q4 2023 due to higher non-interest expense.

• Q4 net interest income rose 4.2% to $23.1M; total interest income up 2.0% to $32.2M.

• Non-interest income for 2024 increased 19.4% to $16.0M; Q4 non-interest income up 15.0% to $4.3M.

• Non-interest expense for 2024 rose 14.8% to $65.2M, driven by compensation, technology, and costs related to a nonperforming loan and a fraud incident.

• Efficiency ratio increased to 60.5% for 2024 from 55.8% in 2023.

Outlook and guidance

• Management remains focused on credit quality, reserving for a non-performing participation loan, and leveraging wealth management growth.

• The regional economic environment is described as strong, supporting loan and deposit growth.