NASDAQ$OBT

Orange County Bancorp Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Orange County Bancorp achieved record quarterly earnings due to increased net interest income.

Orange County Bancorp reported a record net income of $9.1 million for Q4 2022, a 65% increase compared to Q4 2021. The growth was primarily driven by increased interest income and strong loan growth. Total assets reached $2.3 billion, and total loans grew to $1.6 billion.

  • Net income for Q4 2022 reached a quarterly record $9.1 million, a $3.6 million, or 65.0% increase, over net income of $5.5 million in Q4 2021, due primarily to increased interest income
  • Net income for fiscal year 2022 reached a record $24.4 million, a $3.1 million, or 14.4% increase, over net income of $21.3 million in fiscal year 2021, also due primarily to increased interest income
  • Total assets increased $144.8 million, or 6.8%, to $2300000000 at December 31, 2022 from $2100000000 at December 31, 2021
  • Net interest margin for Q4 2022 rose 102 basis points, or 32.9%, to 4.12% from 3.10% for Q4 2021

Headline financials

Total Revenue

$25.9M

Previous: $19.4M+33.8%
EPS (adj)

$0.81

Previous: $0.49+65.3%
Net Interest Margin

4.1%

Previous: 3.1%+32.9%
Non-Performing Loans to Total Loans

0.5%

No prior period
Efficiency Ratio

51.7%

Previous: 61.0%-15.2%
Capital Expenditures

$400K

Previous: $592K-32.4%
Free Cash Flow

$6.85M

Previous: $5.18M+32.3%
Net Income

$9.07M

Previous: $5.49M+65.1%
Operating Income

$11.5M

Previous: $7.02M+64.2%
Cash & Equivalents

$86.1M

Previous: $306M-71.9%
Total Assets

$2.29B

Previous: $2.14B+6.8%

Revenue & EPS history

Orange County Bancorp · Revenue · Quarterly

$25.9M

Q4 2022+33.8%vs Q4 2021
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 is positioned to manage current headwinds, originating high quality loans and expand market share. Higher interest rates may impact loan and deposit growth but also create a strong foundation for the coming year.

Tailwinds

  • The Bank remains focused on its deposit gathering and meeting our goals to expand market share and support our funding plans.
  • Based on our strategic loan objectives, the Bank is well positioned to continue originating high quality loans further into the year and gather a larger share of our business clients’ funds on deposit.
  • The Bank’s net interest margins for Q4 2022 grew 102 basis points, or 32.9%, to 4.12% versus 3.10% the prior year.
  • Orange is well positioned to manage current headwinds.
  • We are a high-performing business bank in a large market with significant upside opportunity focused on execution of our strategic initiatives.

Headwinds

  • Local economies aren’t immune to the widespread impact of current interest rate policy at the Federal Reserve.
  • The Fed’s efforts to slow economic growth also involve the reduction of liquidity in the financial system, negatively impacting the industry’s deposit base.
  • There was some contraction in the fourth quarter deposit base.
  • The Fed’s efforts to further reduce liquidity will remain a challenge for the entire industry.
  • Higher interest rates may slow the economy and impact loan and deposit growth

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 Q4 2022

Historical avgQ4 2022

+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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