Orange County Bancorp, Inc. /DE/ Q3 FY25 Results

“Business momentum we saw through the first half of the year continued into Q3,” said Orange County Bancorp President and CEO Michael Gilfeather. “This resulted in earnings of over $10 million for the quarter, with every segment of the bank contributing strong performance. Loan growth remained strong for the quarter, with total loans up $17.9 million over the prior quarter end, and up $119.9 million since December 31, 2024. Our loan portfolio ended the quarter at over $1.9 billion. While regional economic activity remains robust, we continue to exercise prudent underwriting standards in the face of uncertain political, geopolitical, tariff, and interest rate policy risks. The 6.13% average yield on our loan portfolio for the quarter has improved from 5.94% for the same period last year. And while Federal Reserve guidance and a 25 basis point rate cut in September may keep downward pressure on rates, I remain confident in our team’s ability to manage through it. Deposit growth also remains strong, with total deposits up $125.5 million, or 5.8%, to $2.3 billion at September 30, 2025, from $2.2 billion at year-end 2024.  We replaced $28 million of high cost brokered deposits with organically sourced lower cost deposits during the period. For the quarter, our cost of deposits stood at 1.13%, down 17 basis points, or 13.1%, versus last quarter, and down 12 basis points, or 9.6% versus the same period last year. The decline is a function of both Fed policy and our deliberate efforts to reduce deposit costs. Given the decrease in deposit costs and increase in our average yield on loans, the positive impact on Net Interest Margin (“NIM”) isn’t surprising.  For the quarter NIM grew 45 basis points, or 11.8%, to 4.26% for the quarter ended September 30, 2025, versus 3.81% for the quarter ended September 30, 2024.  Our NIM also compare very favorably on a linked quarter basis, up 20 basis points, or 4.9%, versus the prior quarter. Our Wealth Management division also maintained its track record of growth, with trust and investment advisory income increasing $416 thousand, or 13.3%, to $3.5 million for the quarter from $3.1 million for the same period last year. As I’ve mentioned previously, we continue to view earnings from Wealth Management as an important source of revenue for the Bank. Many of our wealth clients are also borrowers and/or depositors of the Bank, reflecting our belief in the diversified suite of services we offer provides both a powerful client retention tool and effective means of consolidating business and personal finances on our platform. As further evidence of our commitment to the division, earlier this month we formally changed the name of our registered investment advisor to Orange Investment Advisors. This quarter’s results demonstrate the power of our regional business bank strategy, and I couldn’t be more pleased. While realistic about the risks and uncertainty confronting our industry, we have a seasoned and experienced team that not only knows how to assess such risks, but also a proven track record navigating challenges and, where possible, turning them into opportunities.  I want to acknowledge this and thank our employees for their expertise and commitment and our customers and shareholders for their continued confidence and support.”