Orange County Bancorp Reports Strong Earnings for Q4 and Full Year 2024

Orange County Bancorp, Inc. (OBT) has announced its financial results for the fourth quarter and full year of 2024, showcasing a robust performance driven by strategic initiatives and a strong regional economy. The company's net interest income (NII) grew by 3.8% to $91.8 million, while its net interest margin (NIM) expanded by 5 basis points to 3.83%. Total loans and deposits also increased by 3.9% and 5.6%, respectively, reaching $1.8 billion and $2.2 billion at December 31, 2024.



The company's success can be attributed to several strategic initiatives, including:

1. Expanding Commercial Lending Portfolio: Orange County Bancorp has focused on growing its commercial lending portfolio, which has contributed to its NIM. In 2024, total loans grew by $68.7 million, or 3.9%, to $1.8 billion, demonstrating the success of this strategy.
2. Increasing Digital Banking Capabilities: The company has invested in enhancing its digital banking platforms to attract and retain customers, particularly in the low-cost deposit segment. This has helped the company maintain a low cost of deposits, contributing to its NIM. In 2024, total deposits rose by $114.6 million, or 5.6%, to $2.2 billion, with the majority of these new deposits being sourced internally.
3. Enhancing Customer Experience through Technology Investments: Orange County Bancorp has made significant investments in technology to improve the customer experience and drive growth. For example, in 2024, the company allocated $3.2 million for digital infrastructure upgrades and implemented advanced cybersecurity protocols.
4. Promoting David Dineen to Further Align and Expand Wealth Management Capabilities: Orange County Bancorp has promoted David Dineen to lead its wealth management division, Orange Wealth Management. This strategic move aims to better serve the evolving needs of high-net-worth individuals and their families, further expanding the company's customer base and revenue streams.



Despite challenges posed by economic uncertainty and changing interest rates, Orange County Bancorp's NIM grew by 5 basis points to 3.83% in 2024, compared to 3.78% in 2023. This achievement demonstrates the company's ability to adapt and thrive in a dynamic economic environment.

Orange County Bancorp's strong financial performance, driven by its loan portfolio growth and composition, positions it well for future expansion and success. The company's focus on small to medium-sized businesses and its conservative approach to credit quality have contributed to its financial success and provide a solid foundation for future growth.

In conclusion, Orange County Bancorp's fourth quarter and full-year 2024 earnings report highlights the company's ability to maintain and improve its net interest margin through strategic initiatives, despite economic uncertainty and changing interest rates. The company's loan portfolio growth and composition have significantly influenced its overall financial performance, and there are opportunities for further expansion in this area.