Orange County Bancorp Inc (OBT, Financial) announced its Q3 2023 earnings on October 25, 2023. The company reported a net income of $9.0 million, or $1.61 per basic and diluted share, for the three months ended September 30, 2023. This represents an increase from the net income of $7.9 million, or $1.40 per basic and diluted share, for the same period in 2022. The increase in earnings per share was primarily due to strong growth in net interest income during the current period, reflecting increased interest income associated with loans, investments, and cash balances, as well as a reduction in expense related to provision for credit losses.
Financial Performance Highlights
Orange County Bancorp Inc (OBT, Financial) reported that the book value per share rose $1.01, or 4.1%, from $24.48 at December 31, 2022 to $25.49 at September 30, 2023. Tangible book value per share also increased $1.06, or 4.6%, from $23.28 at December 31, 2022 to $24.34 at September 30, 2023. These increases were primarily due to increased earnings during the nine months ended September 30, 2023.
Company President and CEO Michael Gilfeather stated,
For the third quarter of 2023, we generated net income of $9.0 million, a $1.2 million increase over the same period last year. Our performance continues to be driven by a sizable increase in interest income resulting from overall growth in our loan portfolio, as well as an increase in average yield on our interest-earning assets."
Financial Condition and Loan Quality
The company's total consolidated assets increased by 7.0% from $2.3 billion at December 31, 2022 to $2.5 billion at September 30, 2023. This growth was attributed to continued growth in loans, deposits, and cash during the quarter. At the end of Q3 2023, the Bank had total non-performing loans of $9.5 million, or 0.56% of total loans. Total non-accrual loans represented approximately $6.9 million of loans at September 30, 2023, compared to $6.1 million at December 31, 2022.
Outlook and Strategy
Despite the challenges posed by the Fed’s ongoing inflation fighting efforts and its potential impact on regional economic activity, the company has been able to navigate these challenges successfully. The company's strategy continues to focus on generating consistent income over time and transitioning between strategic growth and stability as market conditions require.
For more detailed financial information, please refer to the full earnings report on the Orange County Bancorp Inc (OBT, Financial) website.
Explore the complete 8-K earnings release (here) from Orange County Bancorp Inc for further details.
