Market Overview - Major U.S. indexes have shown significant year-to-date gains: Nasdaq Composite up 78.1%, S&P 500 up 15.8%, and Dow Jones Industrial Average up 11.5% [1] - Despite strong performance, volatility remains as investors shift to safer sectors, moving away from high-valuation technology and AI stocks [1] - Ongoing instability from government tariff policies and economic uncertainty continues to impact market participants [1] Employment and Economic Data - The unemployment rate for September rose to 4.4%, the highest in four years, while nonfarm payrolls increased by 119,000 [2] - Retail sales in September grew by only 0.2%, below expectations, with higher prices raising affordability concerns [2] - The Producer Price Index (PPI) increased by 0.3% in September, aligning with market expectations [2] - The consumer confidence index fell to 88.7, a seven-month low, significantly below the consensus estimate of 93.5 [2] Federal Reserve Expectations - Investors are anticipating a 25-basis point cut in benchmark interest rates by the Federal Reserve in December to address labor-market softness and support growth [3] Dividend-Paying Stocks - In a volatile market, dividend-paying stocks are recommended for portfolio diversification [4] - Notable dividend-paying companies include: - **Orange County Bancorp, Inc. (OBT)**: Declared an 18-cent dividend with a yield of 1.9% [5][6] - **United Bankshares (UBSI)**: Declared a 38-cent dividend with a yield of 3.9% [7] - **Dillard's (DDS)**: Declared a $30 dividend with a yield of 0.2% [10] - **Patrick Industries (PATK)**: Declared a 47-cent dividend with a yield of 1.5% [11][12] - **Agilent Technologies (A)**: Declared a 26-cent dividend with a yield of 0.6% [13][14] - Companies with consistent dividend payouts indicate a healthy business model and tend to outperform non-dividend-paying entities in volatile markets [4]

Market Overview - Wall Street is attempting to rebound after volatility in October and November, but concerns over high inflation, economic health, and uncertainty regarding a Federal Reserve rate cut in December persist [1] - Consumer confidence remains low, which could lead to further market volatility [2] Consumer Sentiment - Consumer sentiment declined to a record low of 51 in November, down from 53.6 in October, representing a 29% year-over-year decrease [3] Federal Reserve Actions - The Federal Reserve cut interest rates by 25 basis points in September and October, but high inflation remains a concern, complicating potential future cuts [4] - A shrinking labor market raises fears of a slowing economy, with expectations that the Federal Reserve may cautiously approach rate cuts in 2026 [4] Impact of Tariffs - President Trump's tariffs have increased commodity prices, leading consumers to reduce spending ahead of the holiday season, which may contribute to prolonged market volatility [5] Dividend-Paying Stocks - Cautious investors may consider dividend-paying stocks for steady income and capital protection amid market uncertainty [2] - Three notable stocks include: - **Orange County Bancorp, Inc. (OBT)**: Announced a dividend of $0.18 per share with a yield of 1.90%, having increased dividends four times in the past five years [6][7] - **Dillard's, Inc. (DDS)**: Declared a dividend of $30 per share with a yield of 0.18%, having increased dividends eight times in the past five years [8][10] - **United Bankshares, Inc. (UBSI)**: Announced a dividend of $0.38 per share with a yield of 3.93%, having increased dividends three times in the past five years [11][12]

分组1 - Orange County Bancorp, Inc. reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, and showing a significant increase from $0.28 per share a year ago, representing an earnings surprise of +10.29% [1] - The company achieved revenues of $33.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 12.45%, compared to $27.14 million in the same quarter last year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed, losing about 13.1% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $30.4 million, and for the current fiscal year, it is $2.85 on revenues of $118 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Orange County Bancorp, Inc. reported a significant increase in net income for Q3 2025, reaching $10.0 million, a 211.5% increase from $3.2 million in Q3 2024, driven by higher net interest income and non-interest income, along with a reduced provision for credit losses [1][10][11] Financial Performance - Net income for the nine months ended September 30, 2025, was $29.2 million, compared to $20.7 million for the same period in 2024 [1][10] - Net interest income rose by $4.0 million, or 17.3%, to $27.0 million for Q3 2025, compared to $23.0 million in Q3 2024 [11][12] - Non-interest income increased by $2.6 million, or 62.6%, to $6.8 million for Q3 2025, compared to $4.2 million in Q3 2024 [16] Asset and Deposit Growth - Total loans increased by $119.9 million, or 6.6%, reaching $1.9 billion at September 30, 2025, compared to $1.8 billion at December 31, 2024 [22][24] - Total deposits rose by $125.5 million, or 5.8%, to $2.3 billion at September 30, 2025, from $2.2 billion at year-end 2024 [5][24] Capital and Book Value - Book value per share increased by $3.86, or 23.6%, from $16.35 at December 31, 2024, to $20.21 at September 30, 2025 [2][34] - Stockholders' equity increased by approximately $84.6 million during the first nine months of 2025, reaching $270.1 million at September 30, 2025 [26] Efficiency and Cost Management - Non-interest expense for Q3 2025 was $16.8 million, reflecting a 5.6% increase from $16.0 million in Q3 2024, with an improved efficiency ratio of 49.9% [17][42] - The cost of deposits decreased to 1.13%, down 17 basis points from the previous quarter [5][6] Wealth Management Division - The Wealth Management division's trust and investment advisory income increased by $416 thousand, or 13.3%, to $3.5 million for Q3 2025 compared to $3.1 million for Q3 2024 [7][28]

Core Insights - Orange County Bancorp, Inc. announced the rebranding of Hudson Valley Investment Advisors to Orange Investment Advisors to create a unified brand experience with Orange Bank & Trust Company [1][2] - The rebranding aims to maintain existing advisory teams, investment strategies, and philosophies, ensuring continuity for clients [2] - This integration is seen as a significant step in unifying core businesses and enhancing brand consistency, ultimately aimed at better serving clients [3] Company Overview - Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Orange Investment Advisors, which was founded in 1996 and acquired in 2012 [3] - Orange Bank & Trust Company has approximately $2.6 billion in total assets and has a long-standing commitment to community and business clientele [3]

Core Points - Orange County Bancorp, Inc. announced the rebranding of Hudson Valley Investment Advisors to Orange Investment Advisors to create a streamlined experience for clients and staff [1][2] - The advisory team, investment strategy, investment philosophy, and investment committee will remain unchanged despite the name change, ensuring continuity for clients [2] - The rebranding is seen as a significant development that will enhance brand consistency and improve service delivery to clients [3] Company Overview - Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Orange Investment Advisors, which was founded in 1996 and acquired in 2012 [3] - Orange Bank & Trust Company has approximately $2.6 billion in total assets and has a long-standing commitment to community and business clientele [3]

Core Points - KBRA assigns a senior unsecured debt rating of BBB to Orange County Bancorp, Inc. and a subordinated debt rating of BBB- [1] - The short-term debt rating for Orange County Bancorp, Inc. is rated K3 [1] - For its main subsidiary, Orange Bank & Trust Company, KBRA assigns a deposit and senior unsecured debt rating of BBB+ and a subordinated debt rating of BBB [1] - The short-term deposit and debt ratings for Orange Bank & Trust Company are rated K2 [1] - The Outlook for all ratings is stable [1]

Financial Performance - Orange County Bancorp, Inc. reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, and up from $0.73 per share a year ago, representing an earnings surprise of +14.47% [1] - The company posted revenues of $32.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 9.65%, compared to year-ago revenues of $27.93 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Orange County Bancorp, Inc. shares have declined approximately 5% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.71 on revenues of $30.2 million, and for the current fiscal year, it is $3.05 on revenues of $118.8 million [7] - The outlook for the industry can significantly impact the stock's performance, with the Banks - Northeast industry currently ranking in the top 10% of over 250 Zacks industries [8]

Core Viewpoint - Orange County Bancorp, Inc. reported strong financial performance for the second quarter of 2025, with net income increasing by 27.4% year-over-year, driven by growth in net interest income and non-interest income, despite higher non-interest expenses [1][10]. Financial Performance - Net income for Q2 2025 was $10.5 million, or $0.87 per share, compared to $8.2 million, or $0.73 per share, in Q2 2024 [1][8]. - For the first half of 2025, net income reached $19.2 million, up from $17.5 million in the same period of 2024 [1][10]. - Net interest income rose by 4.2% to $25.1 million in Q2 2025, compared to $24.1 million in Q2 2024 [8][11]. - Non-interest income surged by 92.2% to $7.3 million in Q2 2025, driven by increased fee income and one-time gains [15][10]. Asset and Liability Management - Total assets increased by 3.8% to $2.6 billion as of June 30, 2025, from $2.5 billion at the end of 2024 [18]. - Total loans grew by 5.6% to $1.9 billion, with significant increases in commercial real estate and construction loans [21][5]. - Total deposits rose by 5.7% to $2.3 billion, with a notable shift from higher-cost brokered deposits to lower-cost client funds [6][22]. Capital and Equity - Book value per share increased by 15.6% to $18.90 as of June 30, 2025, from $16.35 at the end of 2024 [2][10]. - Stockholders' equity rose by approximately $67.1 million to $252.6 million, supported by earnings and a completed common stock offering [25][10]. Wealth Management - The Wealth Management division's assets under management increased by 2.5% to $1.8 billion, with trust and investment advisory income growing by 14.8% to $3.4 million in Q2 2025 [27][9]. Loan Quality and Credit Losses - Total non-performing loans were $11.7 million, or 0.61% of total loans, reflecting an increase from $6.3 million at the end of 2024 [30][10]. - The provision for credit losses was $2.1 million for Q2 2025, slightly down from $2.2 million in Q2 2024 [14][10]. Tax and Regulatory Compliance - The provision for income taxes for Q2 2025 was $3.1 million, up from $2.0 million in Q2 2024, reflecting higher pre-tax income levels [17][10]. - The Bank maintained capital ratios above regulatory standards, with a Tier 1 capital ratio of 12.40% [26][10].

Core Insights - Orange Bank & Trust Company has promoted Elizabeth "Liz" Jones to Executive Vice President, recognizing her significant contributions to the bank's operational efficiency and strategic growth [1][3]. Company Overview - Orange Bank & Trust Company is a leading financial institution in the Hudson Valley, focusing on commercial lending, business banking, payment processing, and wealth management services, with over $2.5 billion in assets [5]. Leadership and Achievements - Liz Jones joined the bank in 2016 and has held various leadership positions, including Chief Operating Officer, where she oversaw critical operational projects such as the bank's core conversion [2][4]. - The promotion reflects her exceptional leadership, work ethic, and ability to align the bank's structure and offerings with client needs, contributing to sustained loan and deposit growth [3][4]. Strategic Role - As Chief of Staff to the President and CEO, Jones has played a key role in driving the bank's strategic agenda and delivering on major project milestones [3].