Orange County Bancorp, Inc. Announces Record Second Quarter 2025 Earnings

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].