Orange County Bancorp Inc 2024年度报告

The Bridgeto BusinessGrowth,GreaterWealth& ShareholderValue MEMBER Federal Reserve SystemFederal Home Loan BankFederal Deposit Insurance Corporation SUBSIDIARIESOrange Bank and Trust Company (“Bank”)Hudson Valley Investment Advisors, Inc (“HVIA”) SHARES OF ORANGE COUNTYBANCORP, INC. STOCK TRADESON THE NASDAQ STOCK MARKETUNDER THE STOCK SYMBOL OBT For information regarding stock transfersand other transactions, contactour Transfer Agent:COMPUTERSHARE, INC.150 Royall Street, Canton, MA 020211.800.368.5948 Orange County Bancorp, Inc. Board of Directors Hudson Valley Investment Advisors Board of Directors Pictured Above:Michael J. GilfeatherWilliam D. MorrisonRichard B. RowleyGus J. Scacco Greg F. HolcombePresident & CEO—Holcombe Letter from the Chairman and President We are pleased to report Orange County Bancorp earned nearly $28 million in 2024 on growth incontributions from almost every division of our business. Though very good results, this figure was slightly belowour record $29.5 million in earnings the prior year due principally to loan loss reserves associated with a commercialparticipation loan during 2024. Overall, our team and business-focused strategy performed admirably, evenas some in the industry struggled to manage a very challenging environment for loan and deposit growth. Weattribute our success to strong client relationships and economic performance in the communities we serve,which enabled us to grow and improve the quality of our loan portfolio by $70 million, or 4%, to $1.8 billion, andour deposit base, by $115 million, or 5.6%, to $2.2 billion, at year end. The fact that the bulk of new deposits weresourced organically due to a bank wide focus is a source of pride for the bank and a continued demonstration ofone of our core strengths. Expanding our loan portfolio and low-cost deposit base enabled us to increase the netinterest margin to 3.83% for 2024 from 3.78% for the prior year. We have performed successfully on every front,and our strong results are a testament to our employees’ hard work and dedication. Early in our strategic planning, we recognized the value of developing revenue and earning streamsindependent of, but complementary to our core banking business. For example, since acquiring Hudson ValleyInvestment Advisors in 2012, HVIA’s assets under management (AUM) have grown from $251 million to $1.7 billion. This ongoing achievement led to 2024’s record year of overall investment revenue of $12 million- 18.5% greater than last year.Our fee income growth is the result of expanded services in our TrustServices Division and the ever-increasing coordinated referrals from the bank’s Private Banking. We nowsuccessfully combine these business units within our Orange Wealth Management umbrella of services. While its 2024 performance is noteworthy, the real potential of our Wealth Management division isjust beginning to be realized. By combining expertise in investment advisory, estate planning, and personalbanking services, we are able to provide a comprehensive wealth management solution that bridges ourclient’s business and personal financial needs. It also provides critical insight and additional touch pointsbetween our clients and the bank. In late 2024, recognition of the value and leverage of this model led to further streamlining of theOrange Wealth Management division. Executive Vice President, David P. Dineen, who previously servedas head of the Bank’s wealth service sales arm, where he successfully oversaw trust and private bankingsince his hiring in February 2022, was given oversight of this new division. Under David’s leadership andinsights gained over the last decade, we are confident Orange Wealth Management will continue to growand deepen the connection between our clients’ current and future financial profile as well as their estateplanning needs. As we have learned in over more than 130 years in business, maintaining our role as the premierbank in the southern Hudson Valley requires that we continue to invest thoughtfully and opportunistically inthe communities we serve. Our recent success with the opening of a branch in the Bronx, for example, hasled us to explore additional business initiatives within the market. As part of this effort, we requested andreceived regulatory approval to open a second branch, which we expect to open in the spring. We work hard to consistently deliver strong, predictable financial results, despite ever evolvingindustry and economic challenges. This resulted in favorable stock price performance in 2024 thatsupported our 2-for-1 stock split and should improve liquidity for shareholders. We are always on the lookoutfor financial or strategic opportunities that will benefit our customers, shareholders, and employees. We are extremely proud of the Bank’s performance in 2024. We are confident in the growthexperienced across our platforms and the continued success of our strategic initiatives, as they have us wellpositioned fo