NASDAQ$OBT

Orange County Bancorp Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net income increased due to higher net interest income and a decrease in provision for credit losses.

Orange County Bancorp reported a net income of $9.0 million for Q3 2023, a $1.2 million increase compared to Q3 2022. The increase was driven by growth in net interest income and a decrease in the provision for credit losses.

  • Net income increased by $1.2 million, or 15.1%, reaching $9.0 million.
  • Net interest margin increased by 8 basis points, or 2.2%, to 3.78%.
  • Total assets grew by $159.9 million, or 7.0%, to $2.5 billion.
  • Trust and investment advisory income rose by $338 thousand, or 15%, to $2.6 million.

Headline financials

Total Revenue

$25.7M

Previous: $24.3M+5.6%
EPS (adj)

$0.81

Previous: $0.70+15.7%
Net Interest Margin

3.8%

Previous: 3.7%+2.2%
Efficiency Ratio

52.8%

Previous: 51.6%+2.3%
Capital Expenditures

-$3.06M

Previous: -$1.15M-166.8%
Free Cash Flow

$5.98M

Previous: $6.71M-10.8%
Net Income

$9.04M

Previous: $7.85M+15.1%
Operating Income

$6.24M

Previous: $16.9M-63.0%
Gross Profit

$18.3M

Previous: $22.3M-17.7%
Cash & Equivalents

$159M

Previous: $180M-12.0%
Total Assets

$2.45B

Previous: $2.37B+3.3%

Revenue & EPS history

Orange County Bancorp · Revenue · Quarterly

$25.7M

Q3 2023+5.6%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Orange County Bancorp · $1.48M total across 2 segments · Q3 2023

  • Trust and Investment Advisory Income
    $1.27M+7.7%
  • Service Charges on Deposit Accounts
    $210K

Forward guidance

Orange County Bancorp remains guarded against the Fed’s ongoing inflation fighting efforts and its potential impact on regional economic activity, including the pressure rising rates place on our ability to gather deposits while maintaining strong net interest rate margins.

Tailwinds

  • Economic activity and loan demand from clients throughout operating region remains strong despite the significant increase in interest rates.
  • The bank is well positioned to adjust loan growth in response to changing market and business conditions.
  • There has been favorable deposit growth during the year primarily due to ongoing focus throughout the Bank to source organic deposits despite current interest rate pressure.
  • The bank was able to expand net interest margin from 3.70% for the quarter ended September 30, 2022 to 3.78% for the quarter ended September 30, 2023.
  • The bank has the vision, the balance sheet, deposit gathering ability, and dexterity to adapt to challenging and often changing circumstances.

Headwinds

  • The bank remains guarded against the Fed’s ongoing inflation fighting efforts
  • Rising rates place pressure on the ability to gather deposits while maintaining strong net interest rate margins.
  • Higher rates may ultimately impact loan demand
  • Deposit uncertainty
  • A potentially stricter regulatory environment in response to recent industry events

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

33%

16 / 49 earnings

Positive

+14.5%

Q1 2024

Best reaction

-9.6%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-7.9%-6.0%
Q4 2025+4.6%+8.8%-3.4%
Q3 2025+2.1%+7.1%+15.7%
Q1 2025+3.2%+3.8%-4.5%
Q4 2024-1.1%-0.6%-12.5%
Q3 2024-8.1%-7.5%+3.5%
Q2 2024-4.8%-12.3%-2.6%
Q1 2024+14.5%+20.9%+13.5%
Q4 2023+1.3%-11.4%-10.9%
Q3 2023+4.6%+2.2%+11.5%
Q2 2023+10.8%+12.8%+15.0%
Q1 2023-9.6%-11.3%-11.6%
Q4 2022+0.0%-0.5%+11.5%
Q3 2022+1.0%+4.8%+11.3%
Q2 2022-3.0%+3.5%-0.6%
Q1 2021+1.0%+2.4%-0.3%
Q1 2022-4.3%-2.0%-4.0%
Q4 2021-1.6%+0.0%-0.9%
Q3 2020-1.3%-1.7%+0.9%
Q3 2021+2.1%+5.7%+1.1%
Q4 2020+1.9%-2.5%-0.1%
Q2 2021-0.2%+0.4%+4.1%
Q2 2020+0.0%+1.1%+0.2%
Q1 2020+0.0%+0.0%+0.0%
Q4 2019-0.3%+0.3%+4.1%
Q3 2019-1.0%-1.0%+2.6%
Q2 2019+0.0%+0.0%+1.8%
Q1 2019+0.0%+0.0%-0.9%
Q4 2018+0.0%+0.0%+3.7%
Q3 2018+0.0%-0.7%-13.8%
Q2 2018+0.0%+0.0%-9.1%
Q1 2018+0.0%+0.0%+0.9%
Q4 2017+0.0%+0.0%-1.8%
Q3 2017-3.3%-3.8%-5.4%
Q2 2017+0.0%+0.0%+1.1%
Q1 2017+1.1%+0.0%-0.5%
Q4 2016-1.1%-1.0%-0.7%
Q3 2016+0.0%+0.0%-1.2%
Q2 2016+0.0%+0.2%-0.2%
Q1 2016+0.0%
Q4 2015+0.0%
Q3 2015+0.0%
Q2 2015+0.0%
Q1 2015+0.0%
Q4 2014+0.6%
Q3 2014+0.0%
Q2 2014+0.0%
Q1 2014-0.9%
Q4 2012+0.8%

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