Orange County Bancorp Reports Q1 2025 Financial Results with $8.7M Net Income

Orange County Bancorp, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $8.7 million, a decrease of 6.3% from $9.3 million in the same period last year. The decline was attributed to a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt in the first quarter of 2024. However, the company experienced a 9.4% increase in net interest income, which rose to $23.6 million, driven by a higher yield on interest-earning assets and an increase in the average balance of loans.

Total assets increased by $50.2 million, or 2.0%, to $2.56 billion as of March 31, 2025, primarily due to a $38.2 million rise in net loans and a $13.8 million increase in cash and due from banks. The loan portfolio reached $1.85 billion, with notable growth in commercial real estate and construction loans, which increased by $19.7 million and $16.7 million, respectively. The allowance for credit losses rose to $26.4 million, representing 1.42% of total loans, reflecting the company's proactive approach to managing credit risk amid economic uncertainties.

In terms of operational metrics, total deposits grew by $128.3 million, or 6.0%, to $2.28 billion, with significant contributions from interest-bearing demand deposits and money market accounts. The company’s focus on maintaining a strong liquidity position was evident as it reduced its Federal Home Loan Bank advances by approximately $93 million during the quarter. The increase in deposits was attributed to strategic efforts to enhance commercial transaction accounts and overall deposit growth.

Orange County Bancorp also reported an increase in noninterest income, which rose by 18.2% to $4.36 million, driven by growth in trust income and investment advisory services. The company’s wealth management division saw assets under management increase to $1.7 billion, reflecting a strong performance in its investment management services. The overall efficiency ratio improved to 58.9%, indicating better cost management relative to income generation.

Looking ahead, the company remains focused on leveraging its growth opportunities in the Lower Hudson Valley and surrounding markets. Management anticipates that continued disciplined pricing on loans and a strategic approach to deposit growth will support its financial performance in the coming quarters. The company is also committed to maintaining a strong capital position, exceeding all regulatory capital requirements, and ensuring robust liquidity to navigate potential economic challenges.