Orange County Bancorp, Inc. Announces Third Quarter 2024 results:

Core Viewpoint - Orange County Bancorp, Inc. reported a decrease in net income for Q3 2024, primarily due to increased provisions for credit losses and non-interest expenses, despite growth in net interest income and non-interest income [1][8]. Financial Performance - Net income for Q3 2024 was $3.2 million, down 64.4% from $9.0 million in Q3 2023, with earnings per share decreasing from $1.61 to $0.57 [1][8]. - For the nine months ended September 30, 2024, net income totaled $20.7 million, compared to $21.4 million for the same period in 2023 [1][8]. Net Interest Income - Net interest income increased by $467 thousand, or 2.1%, to $23.0 million for Q3 2024, compared to $22.5 million in Q3 2023 [1][9]. - Total interest income rose by $1.3 million, or 4.4%, to $31.4 million for Q3 2024, driven by a 6.9% increase in interest and fees on loans [10]. Loan and Deposit Growth - Total loans grew by $49.0 million, or 2.8%, reaching $1.8 billion at September 30, 2024, compared to $1.7 billion at December 31, 2023 [1][21]. - Total deposits increased by $101.3 million, or 5.0%, to $2.1 billion at September 30, 2024, from $2.0 billion at year-end 2023 [1][22]. Provision for Credit Losses - The provision for credit losses was $7.2 million for Q3 2024, significantly higher than $837 thousand in Q3 2023, primarily due to a reserve against a problematic commercial loan [14][8]. - The allowance for credit losses to total loans was 1.73% as of September 30, 2024, compared to 1.44% at December 31, 2023 [14]. Non-Interest Income - Non-interest income rose by $954 thousand, or 29.6%, to $4.2 million for Q3 2024, compared to $3.2 million in Q3 2023, driven by increased fee income [15]. Non-Interest Expense - Non-interest expense increased by $2.4 million, or 17.3%, to $16.0 million for Q3 2024, reflecting higher compensation, technology, and professional fees [16]. Wealth Management Performance - Trust and investment advisory income increased by $521 thousand, or 20.1%, to $3.1 million for Q3 2024, compared to $2.6 million in Q3 2023 [6][26]. Financial Condition - Total consolidated assets increased by $33.6 million, or 1.4%, to $2.5 billion at September 30, 2024 [18]. - Stockholders' equity rose by approximately $27.7 million during the first nine months of 2024, reaching $193.1 million at September 30, 2024 [24]. Capital Ratios - The Bank maintained capital ratios above regulatory standards, with a Tier 1 capital to average assets ratio of 10.06% and total capital to risk-weighted assets of 14.89% [25].