Orange County Bancorp Posts 29.6% Q1 Net Income Rise to $11.3M
Orange County Bancorp reported record Q1 net income of $11.3 million, a 29.6% increase year-over-year, and EPS of $0.85. Net interest margin widened by 45 basis points to 4.40% while deposits grew $39.4 million to $2.4 billion and book value per share rose to $21.75.
1. Record First Quarter Earnings
Orange County Bancorp earned $11.3 million in Q1, up $2.6 million or 29.6% from the same period last year, with EPS increasing from $0.77 to $0.85. This growth was driven by higher net interest income and a reduced provision for credit losses, partly offset by increased noninterest expenses.
2. Net Interest Margin Expansion
The bank’s net interest margin improved by 45 basis points to 4.40% from 3.95% year-over-year. This expansion reflected a higher average loan yield of 6.18% and a lower average deposit cost of 1.03%, down 26 basis points year-over-year and 8 basis points quarter-over-quarter.
3. Deposit and Loan Balances
Total deposits rose by $39.4 million, or 1.7%, to $2.4 billion at quarter-end, driven primarily by core deposit growth and reduced reliance on higher-cost brokered funding. Total loans remained relatively flat at approximately $2.0 billion, increasing only $1.7 million year-to-date.
4. Wealth Management Division Performance
The Wealth Management division earned $3.3 million in Q1, down 5.0% year-over-year and 12.5% quarter-over-quarter. This decline was due to reduced assets under management from market volatility, interest rate fluctuations, and last year’s divisional restructuring.