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OBT Nasdaq· Orange County Bancorp Inc
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OBT Nasdaq· Orange County Bancorp Inc
Earnings report Q3 2023

Orange County Bancorp, Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Orange County Bancorp, Inc. reported a significant increase in revenue for the latest quarter. The company's interest income rose by $7.3 million, or 31.8%, to $30.1 million for the three months ended September 30, 2023, compared to $22.8 million for the same period in 2022. This increase was primarily driven by an increase in the average balance of interest-earning assets, which grew by $62.2 million, or 2.7%, to $2.4 billion. Additionally, the average yield of interest-earning assets increased by 111 basis points.

Strengths

The company's strong revenue growth can be attributed to increased net interest income of $11.0 million during the nine-month period ended September 30, 2023, compared to the same prior year period. The increase in interest income was driven by higher average balances of interest-earning assets and an improved average yield. The company's wealth management business segment also contributed to its strong financial performance.

Challenges

Despite the overall positive performance, Orange County Bancorp, Inc. faced challenges in managing its interest expense. The company's interest expense increased to $7.6 million for the latest quarter, compared to $1.4 million for the same period in 2022. This increase was primarily due to higher expenses related to savings and NOW accounts, time deposits, FHLB advances, and subordinated notes.

Noteworthy

Orange County Bancorp, Inc. demonstrated improved efficiency in its operations, as reflected by a decrease in its efficiency ratio to 55.4% for the nine months ended September 30, 2023, compared to 57.5% for the same period in 2022. The company's provision for income taxes also increased, in line with the growth in income before income taxes during the quarter.

Summary

Orange County Bancorp, Inc. delivered a strong financial performance in the latest quarter, driven by robust revenue growth. The company's interest income increased significantly, supported by higher average balances of interest-earning assets and an improved average yield. Despite challenges in managing interest expenses, Orange County Bancorp, Inc. demonstrated improved operational efficiency. The company's wealth management business segment also contributed to its overall strength.

Source documents

Form 10-Q  filed on Nov 14, 2023
8 pages scanned

Reference data

Company financials Q3 revenue 25.4M
Analyst estimates Q3 EPS beat by 12.50%
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