Orange County Bancorp, Inc. Announces Record Third Quarter Results

- Quarterly Net Income increased 12.4% over prior quarter to $3.2 million

Published

MIDDLETOWN, N.Y., Oct. 24, 2019 /PRNewswire/ -- Orange County Bancorp, Inc. (the "Company") (OTCQX: OCBI), parent of Orange Bank & Trust Co. (the "Bank") and Hudson Valley Investment Advisors, Inc. (HVIA), today announced record net income of $3.2 million, or $0.71 per share, for the three months ended September 30, 2019. This compares with net income of $2.8 million, or $0.63 per share, for the three months ended June 30, 2019 and $2.0 million, or $0.51 per share, for the three months ended September 30, 2018. Net income for the nine month period ended September 30, 2019 increased $3.3 million to $8.2 million, or $1.84 per share, compared to $4.9 million, or $1.39 per share, for the nine months ended September 30, 2018.

"I am very pleased to report another period of record results for the third quarter and year-to-date," said Michael Gilfeather, President and Chief Executive Officer. "The earnings are the result of meaningful contributions from all business lines across our geographic footprint. Loans and deposits, the Bank's core operations, continue to expand, even as the Bank maintains a conservative risk profile and low funding costs. Our ongoing investments in Rockland and Westchester counties remain key to this growth and our continued success. These counties now represent 41% of the Bank's loans and 45% of the Bank's deposits at September 30, 2019.

Total deposit growth was primarily in non-interest bearing commercial demand deposits ("DDA") and NOW accounts; demonstrating a strong market response to our integrated, company-wide focus on business relationships. DDA and NOW balances were 46.7% of total deposits at September 30, 2019. The Bank's investment in state-of the art cash management services has expanded our product depth and is expected to contribute to continued account growth and customer retention.

Our Trust and Asset Management businesses also performed well, significantly increasing fee and non-interest related income. Our newest business service, Private Banking, continues to grow, helping clients and the Company better leverage the capabilities across our organization.

Our record earnings are primarily a result of building on our firm's core competencies – anticipating our customers' needs and delivering the highest quality products, solutions, and services, with a particular focus on business customers in our expanded geographic footprint. Aside from record earnings, this strategy has led to an increase in tangible book value per share from $20.38 at the end of September 2018, to $24.80 at end of September 2019, a 21.8% increase. Results like these don't happen without the trust of our clients, the hard work and dedication of our employees, and ongoing support from our shareholders. Thank you on behalf of myself and the Board."

Income Statement SummaryNet interest income for the three months ended September 30, 2019 increased $2.3 million, or 25.7%, to $11.4 million, compared with the three months ended September 30, 2018. The increase is primarily the result of a $193.5 million, or 18.9%, increase in average interest earning assets, resulting in an 18 basis point increase in net interest margin. The increase in average interest earning assets is due primarily to a $202.5 million, or 31.7%, increase in average loans outstanding. Net interest margin of 3.98% for the three months ended September 30, 2019 represents an 18 basis point, or 4.7%, increase versus 3.80% for the same period last year. The cost of interest-bearing deposits for the three months ended September 30, 2019 was 0.67%, compared to 0.37% for the three months ended September 30, 2018, an increase of 30 basis points, or 79.7%. The Company continued to see strong growth in non-interest bearing demand accounts, with an increase of $85.4 million, or 38.5%, to $308.2 million in average non-interest bearing demand accounts when compared to September 30, 2018.  

The bank's provision for loan losses was $640 thousand for the three months ended September 30, 2019, compared to $420 thousand the prior quarter, and $540 thousand for the three months ended September 30, 2018. Non-accrual loans, as a percent of total loans, was 0.28% as of September 30, 2019, an increase of 0.08% from the period ended June 30, 2019, and a decrease of 0.05% for the period ended September 30, 2018. Loans classified as substandard or doubtful decreased $327 thousand, or 2.2%, to $14.3 million as of September 30, 2019, from $14.6 million for the period ended June 30, 2019, and $1.5 million, or 9.7%, from $15.8 million for the period ended September 30, 2018.

Non-interest income increased $404 thousand, to $2.7 million, for the three months ended September 30, 2019 compared to the three months ended June 30, 2019, and $177 thousand compared to the three months ended September 30, 2018. These increases are primarily due to an increase in trust income and  realized losses on securities sales during the three months ended June 30, 2019. The Company recorded no such losses in the three month periods ended September 30, 2019, and September 30, 2018.

Non-interest expense increased $610 thousand to $9.6 million for the three months ended September 30, 2019 compared to the three months ended June 30, 2019, and $935 thousand compared to the three months ended September 30, 2018. The year-over-year increase was due primarily to a $714 thousand increase in salaries and employee benefits resulting from  growth-related staffing. Non-interest expense for the three months ended September 30, 2019 was favorably impacted by the issuance of insurance credits by the Federal Deposit Insurance Corporation (" FDIC") to small institutions resulting in zero FDIC insurance expense in the three months ended September 30, 2019.

The Company's effective income tax rate for the three months ended September 30, 2019 was 20.4%. This compares with 20.4% for the three months ended June 30, 2019, and 18.6% for the three months ended September 30, 2018. The Company's effective income tax rate for the nine months ended September 30, 2019 was 20.2%. This compares with 19.9% for the nine months ended September 30, 2018.

Balance Sheet SummaryTotal balance sheet assets increased $174 million, or 16.3%, to $1.24 billion at September 30, 2019, from $1.07 billion at September 30, 2018.  This was primarily due to increases of $182.0 million in net loans and $50.0 million in cash and cash equivalents, partially offset by a $25.3 million decrease in investment securities. The increase in cash and cash equivalents is primarily due to increases in deposits, while the $182.0 million increase in loans was the result of $308.9 million of new loan originations and purchases, partially offset by $152.1 million of net amortization and repayments on our existing portfolio. Net loan purchases during the same period totaled $25.2 million. For the quarter ended September 30, 2019, new loan originations totaled $87.6 million, loan purchases were $1.3 million and net amortization and repayments totaled $44.4 million.

Total liabilities increased $144.7 million to $1.13 billion during the three months ended September 30, 2019, from $1.1 billion at June 30, 2019. This was primarily due to a $154.6 million increase in total deposits partially offset by a $10 million reduction in FHLB advances.

Total deposits at September 30, 2019 were $1.1 billion, an increase of $154.8 million, or 16.3%, from the period ended September 30, 2018 and an increase of $199.6 million, or 22.1%, from the period ended December 31, 2018. Municipal deposits represented 19.7% of total deposits at September 30, 2019 compared to 17.2% at December 31, 2018 and 20.6% at September 30, 2018.

Total shareholders' equity increased $29.8 million, or 33.6%, to $118.5 million at September 30, 2019, from $88.8 million at September 30, 2018.  This increase is due to net proceeds from a $16.1 million private securities offering completed October 31, 2018, a $7.5 million increase in retained earnings and a $6.4 million improvement in the market value of securities available for sale. 

At September 30, 2019, the Company's book value per common share and tangible book value per common share were $26.52 and $24.80, respectively, compared to $22.38 and $20.38, respectively, at September 30, 2018. This represents increases of 18.6% and 21.8%, respectively. At September 30, 2019, the Bank exceeded the "well capitalized" thresholds under applicable regulatory guidelines.

Asset Quality SummaryNon-performing loans increased to $2.04 million or 0.28% of total loans as of September 30, 2019, from $1.63 million or 0.20% of total loans as of June 30, 2019.  Non-performing loans decreased $325 thousand, from $2.3 million or 0.33% of total loans as of September 30, 2018.

Loans classified as substandard or doubtful decreased $327 thousand, or 2.2%, to $14.3 million at September 30, 2019, from $14.6 million at June 30, 2019, and decreased $1.5 million, or 9.7%, from $15.9 million at September 30, 2018.  Watch rated loans increased $5.2 million, or 109%, to $9.9 million at September 30, 2019 from $4.7 million at June 30, 2019. Delinquencies increased to $3.9 million or 0.45% of total loans at September 30, 2019, from $2.2 million or 0.27% of total loans at June 30, 2019, and declined $78 thousand from $4.0 million or 0.59% of total loans at September 30, 2018.

At September 30, 2019, the Company's allowance for loan losses was 1.42% of total loans outstanding, a decrease from 1.43% at June 30, 2018 and from 1.49% at September 30, 2018.  Notwithstanding net loan growth during the quarter, continued improvement in historical loss rate assumptions and performance of the loan portfolio contributed to the reduction in this allowance ratio.        

About Orange County Bancorp, Inc. Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through conservative banking practices, ongoing innovation and an unwavering commitment to its community and business clientele to more than $1 billion in Total Assets. In recent years, Orange Bank & Trust Company has added branches in Rockland and Westchester Counties. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and was acquired by the Company in 2012. For more information, visit orangebanktrust.com or hviaonline.com

For further information:Robert L. PeacockEVP Chief Financial Officerrpeacock@orangebanktrust.com Phone: (845) 341-5005

 

 

Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited)
(dollar amounts in thousands except per share data)
September 30, December 31, September 30,
2019 2018 2018
ASSETS
Cash and due from banks $          65,667 $                     18,374 $              16,081
Investment securities - available-for-sale 258,970 258,058 284,277
Loans 868,244 737,076 684,020
Allowance for loan losses (12,345) (10,663) (10,122)
Loans, net 855,899 726,413 673,898
Premises and equipment 14,503 13,934 13,900
Accrued interest receivable 4,327 3,008 3,886
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954
Goodwill 5,359 5,359 5,359
Intangible assets 2,321 2,535 2,582
Other assets 9,647 10,064 42,946
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing $       332,681 $                   240,432 $            247,270
Interest bearing 771,897 664,576 702,507
Total deposits 1,104,578 905,008 949,777
FHLB advances 5,000 35,500 15,000
Note payable 3,013 3,057 3,071
Accrued expenses and other liabilities 13,250 12,768 13,269
TOTAL LIABILITIES 1,125,841 956,333 981,117
STOCKHOLDERS' EQUITY
Common stock, $0.50 par value; 15,000,000 shares authorized;
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973
Surplus 84,849 85,496 69,307
Undivided profits 36,728 30,956 29,246
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743)
Treasury stock, at cost (946) (1,192) (1,017)
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883
Book value per share $              26.52 $                       24.11 $                22.38
Tangible book value per share $              24.80 $                       22.36 $                20.38

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 
September 30, December 31, September 30, 2019 2018 2019 2018
2019 2018 2018 INTEREST INCOME
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643
Interest on investment securities:
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115
Interest on Federal funds sold and other 282 175 636 468
Loans 868,244 737,076 684,020
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992
Loans, net 855,899 726,413 673,898
INTEREST EXPENSE
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969
Other assets 9,647 10,064 42,946
NET INTEREST INCOME 11,435 9,097 32,154 26,023
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883
Provision for loan losses 640 540 1,660 1,825
LIABILITIES AND STOCKHOLDERS' EQUITY
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198
Deposits:
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359
Investment advisory income 1,125 1,123 3,381 3,282
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) -
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533
TOTAL LIABILITIES 1,125,841 956,333 981,117
OTHER OPERATING EXPENSES
STOCKHOLDERS' EQUITY Salaries 3,658 3,288 10,661 9,542
Common stock, $0.50 par value; 15,000,000 shares authorized; Employee benefits 1,816 1,472 5,164 4,305
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively Occupancy expense 879 831 2,653 2,504
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at Professional fees 672 627 1,976 2,187
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973 Directors' fees and expenses 282 248 822 733
Surplus 84,849 85,496 69,307 Computer software expense 821 704 2,218 2,085
Undivided profits 36,728 30,956 29,246 FDIC assessment - 154 245 380
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743) Advertising expenses 324 304 825 678
Treasury stock, at cost (946) (1,192) (1,017) Advisor expenses related to trust income 213 200 631 581
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766 Telephone expenses 115 115 339 357
Intangible amortization 71 71 214 214
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883 Other 719 621 2,208 2,004
TOTAL OTHER OPERATING EXPENSES 9,570 8,635 27,956 25,570
Book value per share $              26.52 $                       24.11 $                22.38
Tangible book value per share $              24.80 $                       22.36 $                20.38 Income before income taxes 3,971 2,491 10,272 6,161
Provision for income taxes 810 463 2,073 1,223
NET INCOME $                3,161 $           2,028 $           8,199 $           4,938
Earnings per share $                  0.71 $             0.51 $             1.84 $             1.39
Cash dividends declared per share $                  0.20 $             0.20 $             0.60 $             0.60
Weighted average shares outstanding 4,481,772 3,940,913 4,467,747 3,545,080

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited) Net Interest Margin Analysis (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data) (dollar amounts in thousands)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 
September 30, December 31, September 30, 2019 2018 2019 2018 Three Months Ended September 30,
2019 2018 2018 INTEREST INCOME 2019 2018
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643 Average Balance Interest Average Rate Average Balance Interest Average Rate
Interest on investment securities: Assets:
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766 Loans Receivable $             841,944 $      10,680 5.07% $           639,478 $                 8,135 5.09%
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115 Investment securities 262,659 1,826 2.78% 290,136 1,517 2.09%
Interest on Federal funds sold and other 282 175 636 468 Other interest-earning assets 44,352 282 2.54% 27,671 175 2.53%
Loans 868,244 737,076 684,020 Total interest earning assets 1,148,955 12,788 4.45% 957,285 9,827 4.11%
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992 Non-interest earning assets 70,111 68,287
Loans, net 855,899 726,413 673,898   Total assets $          1,219,066 $        1,025,572
INTEREST EXPENSE
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044 Liabilities and equity:
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598 NOW accounts $             186,627 $           117 0.25% $           151,903 $                      37 0.10%
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188 Savings and money market accounts 494,038 861 0.70% 422,936 369 0.35%
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139 Time deposits 91,241 309 1.35% 104,242 224 0.86%
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969 Total interest-bearing deposits 771,906 1,287 0.67% 679,082 630 0.37%
Other assets 9,647 10,064 42,946 FHLB Advances and other borrowings 8,021 66 3.29% 23,033 100 1.74%
NET INTEREST INCOME 11,435 9,097 32,154 26,023 Total interest bearing liabilities 779,927 1,353 0.69% 702,115 730 0.42%
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883 Non-interest bearing deposits 308,192 222,488
Provision for loan losses 640 540 1,660 1,825 Other non-interest bearing liabilities 13,530 12,136
LIABILITIES AND STOCKHOLDERS' EQUITY   Total liabilities 1,101,649 936,739
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198   Total shareholders' equity 117,417 88,835
Deposits:   Total liabilities and shareholders' equity $          1,219,066 $        1,025,574
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714 Net interest income $      11,435 $                 9,097
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359 Interest rate spread1 3.76% 3.69%
Investment advisory income 1,125 1,123 3,381 3,282 Net interest margin2 3.98% 3.80%
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) - Average interest earning assets to interest-bearing liabilities 147.3% 136.3%
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662 Notes:
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
TOTAL LIABILITIES 1,125,841 956,333 981,117 2 Net interest margin is the annualized net interest income divided by average interest-earning assets.
OTHER OPERATING EXPENSES
STOCKHOLDERS' EQUITY Salaries 3,658 3,288 10,661 9,542 Orange County Bancorp, Inc. and Subsidiaries
Common stock, $0.50 par value; 15,000,000 shares authorized; Employee benefits 1,816 1,472 5,164 4,305 Net Interest Margin Analysis (unaudited)
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively Occupancy expense 879 831 2,653 2,504 (dollar amounts in thousands)
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at Professional fees 672 627 1,976 2,187
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973 Directors' fees and expenses 282 248 822 733 Nine Months Ended September 30,
Surplus 84,849 85,496 69,307 Computer software expense 821 704 2,218 2,085 2019 2018
Undivided profits 36,728 30,956 29,246 FDIC assessment - 154 245 380 Average Balance Interest Average Rate Average Balance Interest Average Rate
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743) Advertising expenses 324 304 825 678 Assets:
Treasury stock, at cost (946) (1,192) (1,017) Advisor expenses related to trust income 213 200 631 581 Loans Receivable $             800,153 $      30,116 5.02% $           634,398 $               22,643 4.76%
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766 Telephone expenses 115 115 339 357 Investment securities 257,669 4,861 2.52% 295,946 4,881 2.20%
Intangible amortization 71 71 214 214 Other interest-earning assets 36,364 636 2.33% 35,943 468 1.74%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883 Other 719 621 2,208 2,004 Total interest earning assets 1,094,186 35,613 4.34% 946,103 27,992 3.94%
TOTAL OTHER OPERATING EXPENSES 9,570 8,635 27,956 25,570 Non-interest earning assets 66,453 68,199
Book value per share $              26.52 $                       24.11 $                22.38   Total assets $          1,160,639 $        1,014,302
Tangible book value per share $              24.80 $                       22.36 $                20.38 Income before income taxes 3,971 2,491 10,272 6,161
Liabilities and equity:
Provision for income taxes 810 463 2,073 1,223 NOW accounts $             183,613 $           205 0.15% $           152,468 $                    105 0.09%
NET INCOME $                3,161 $           2,028 $           8,199 $           4,938 Savings and money market accounts 459,673 2,062 0.60% 420,528 939 0.30%
Time deposits 93,743 919 1.31% 105,071 598 0.76%
Earnings per share $                  0.71 $             0.51 $             1.84 $             1.39 Total interest-bearing deposits 737,029 3,186 0.58% 678,066 1,642 0.32%
FHLB Advances and other borrowings 13,510 273 2.69% 23,069 327 1.89%
Cash dividends declared per share $                  0.20 $             0.20 $             0.60 $             0.60 Total interest bearing liabilities 750,539 3,459 0.61% 701,135 1,969 0.37%
Non-interest bearing deposits 283,976 210,705
Weighted average shares outstanding 4,481,772 3,940,913 4,467,747 3,545,080 Other non-interest bearing liabilities 13,237 12,663
  Total liabilities 1,047,752 924,504
  Total shareholders' equity 112,887 89,800
  Total liabilities and shareholders' equity $          1,160,639 $        1,014,303
Net interest income $      32,154 $               26,023
Interest rate spread1 3.73% 3.57%
Net interest margin2 3.92% 3.67%
Average interest earning assets to interest-bearing liabilities 145.8% 134.9%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
2 Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. and Subsidiaries Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited) Net Interest Margin Analysis (unaudited) Selected Financial Data (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data) (dollar amounts in thousands) (Dollar Amounts in thousands except per share data)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  For the Quarter Ended Nine Months Ended
September 30, December 31, September 30, 2019 2018 2019 2018 Three Months Ended September 30, September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018
2019 2018 2018 INTEREST INCOME 2019 2018 Performance Ratios1
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643 Average Balance Interest Average Rate Average Balance Interest Average Rate Return on average assets 1.03% 0.98% 0.81% 0.98% 0.76% 0.94% 0.65%
Interest on investment securities: Assets: Return on average equity 10.67% 10.06% 8.28% 10.31% 9.03% 9.68% 7.33%
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766 Loans Receivable $             841,944 $      10,680 5.07% $           639,478 $                 8,135 5.09% Interest rate spread 3.76% 3.71% 3.81% 3.83% 3.54% 3.73% 3.57%
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115 Investment securities 262,659 1,826 2.78% 290,136 1,517 2.09% Net interest margin 3.98% 3.91% 3.97% 3.97% 3.66% 3.92% 3.67%
Interest on Federal funds sold and other 282 175 636 468 Other interest-earning assets 44,352 282 2.54% 27,671 175 2.53% Efficiency Ratio 67.29% 68.68% 71.54% 69.23% 72.92% 70.08% 76.20%
Loans 868,244 737,076 684,020 Total interest earning assets 1,148,955 12,788 4.45% 957,285 9,827 4.11%
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992 Non-interest earning assets 70,111 68,287 Noninterest income to average assets 0.90% 0.81% 0.80% 0.84% 0.89% 3.06% 3.32%
Loans, net 855,899 726,413 673,898   Total assets $          1,219,066 $        1,025,572 Noninterest expense to average assets 3.14% 3.11% 3.25% 3.19% 3.18% 3.06% 3.32%
INTEREST EXPENSE Average interest-earning assets to average interest-bearing liabilities 147.32% 142.87% 142.89% 140.40% 138.38% 145.79% 134.94%
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044 Liabilities and equity: Average equity to average assets 9.63% 9.72% 9.84% 9.50% 8.41% 9.73% 8.85%
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598 NOW accounts $             186,627 $           117 0.25% $           151,903 $                      37 0.10% Dividend payout ratio 28.36% 31.87% 40.31% 34.46% 38.87% 32.69% 43.08%
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188 Savings and money market accounts 494,038 861 0.70% 422,936 369 0.35%
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139 Time deposits 91,241 309 1.35% 104,242 224 0.86% As of the Quarter Ended
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969 Total interest-bearing deposits 771,906 1,287 0.67% 679,082 630 0.37% September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
Other assets 9,647 10,064 42,946 FHLB Advances and other borrowings 8,021 66 3.29% 23,033 100 1.74%
NET INTEREST INCOME 11,435 9,097 32,154 26,023 Total interest bearing liabilities 779,927 1,353 0.69% 702,115 730 0.42% Loans to Deposits 78.61% 76.80% 78.09% 81.44% 72.02%
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883 Non-interest bearing deposits 308,192 222,488 Noninterest bearing deposits to total deposits 30.12% 28.58% 27.79% 26.57% 26.03%
Provision for loan losses 640 540 1,660 1,825 Other non-interest bearing liabilities 13,530 12,136
LIABILITIES AND STOCKHOLDERS' EQUITY   Total liabilities 1,101,649 936,739 Share Data:
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198   Total shareholders' equity 117,417 88,835 Shares outstanding 4,467,747 4,481,122 4,490,047 4,481,726 3,921,243
Deposits:   Total liabilities and shareholders' equity $          1,219,066 $        1,025,574 Book value per common share $    26.52 $      25.85 $    24.75 $      24.22 $    22.64
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME Tangible book value per common share2 $    24.80 $      24.12 $    23.00 $      22.46 $    20.61
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714 Net interest income $      11,435 $                 9,097
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359 Interest rate spread1 3.76% 3.69% Capital Ratios3
Investment advisory income 1,125 1,123 3,381 3,282 Net interest margin2 3.98% 3.80% Tier 1 capital (to adjusted total assets) 8.95% 9.23% 9.41% 9.67% 8.77%
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) - Average interest earning assets to interest-bearing liabilities 147.3% 136.3% Common equity Teir 1 capital (to risk weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93%
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516 Tier 1 capital (to risk-weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93%
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662 Notes: Total capital (to risk-weighted assets) 13.41% 13.80% 14.27% 14.93% 14.19%
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
TOTAL LIABILITIES 1,125,841 956,333 981,117 2 Net interest margin is the annualized net interest income divided by average interest-earning assets. Notes:
OTHER OPERATING EXPENSES 1   Performance ratios are annualized.
STOCKHOLDERS' EQUITY Salaries 3,658 3,288 10,661 9,542 Orange County Bancorp, Inc. and Subsidiaries 2   Tangible book value per share is a non-GAAP measure and equals total sharholders' equity, less goodwilland other intangible assets, divided by shares outstanding.
Common stock, $0.50 par value; 15,000,000 shares authorized; Employee benefits 1,816 1,472 5,164 4,305 Net Interest Margin Analysis (unaudited) 3   Represents Orange County Bank & Trust ratios
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively Occupancy expense 879 831 2,653 2,504 (dollar amounts in thousands)
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at Professional fees 672 627 1,976 2,187
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973 Directors' fees and expenses 282 248 822 733 Nine Months Ended September 30,
Surplus 84,849 85,496 69,307 Computer software expense 821 704 2,218 2,085 2019 2018
Undivided profits 36,728 30,956 29,246 FDIC assessment - 154 245 380 Average Balance Interest Average Rate Average Balance Interest Average Rate
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743) Advertising expenses 324 304 825 678 Assets:
Treasury stock, at cost (946) (1,192) (1,017) Advisor expenses related to trust income 213 200 631 581 Loans Receivable $             800,153 $      30,116 5.02% $           634,398 $               22,643 4.76%
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766 Telephone expenses 115 115 339 357 Investment securities 257,669 4,861 2.52% 295,946 4,881 2.20%
Intangible amortization 71 71 214 214 Other interest-earning assets 36,364 636 2.33% 35,943 468 1.74%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883 Other 719 621 2,208 2,004 Total interest earning assets 1,094,186 35,613 4.34% 946,103 27,992 3.94%
TOTAL OTHER OPERATING EXPENSES 9,570 8,635 27,956 25,570 Non-interest earning assets 66,453 68,199
Book value per share $              26.52 $                       24.11 $                22.38   Total assets $          1,160,639 $        1,014,302
Tangible book value per share $              24.80 $                       22.36 $                20.38 Income before income taxes 3,971 2,491 10,272 6,161
Liabilities and equity:
Provision for income taxes 810 463 2,073 1,223 NOW accounts $             183,613 $           205 0.15% $           152,468 $                    105 0.09%
NET INCOME $                3,161 $           2,028 $           8,199 $           4,938 Savings and money market accounts 459,673 2,062 0.60% 420,528 939 0.30%
Time deposits 93,743 919 1.31% 105,071 598 0.76%
Earnings per share $                  0.71 $             0.51 $             1.84 $             1.39 Total interest-bearing deposits 737,029 3,186 0.58% 678,066 1,642 0.32%
FHLB Advances and other borrowings 13,510 273 2.69% 23,069 327 1.89%
Cash dividends declared per share $                  0.20 $             0.20 $             0.60 $             0.60 Total interest bearing liabilities 750,539 3,459 0.61% 701,135 1,969 0.37%
Non-interest bearing deposits 283,976 210,705
Weighted average shares outstanding 4,481,772 3,940,913 4,467,747 3,545,080 Other non-interest bearing liabilities 13,237 12,663
  Total liabilities 1,047,752 924,504
  Total shareholders' equity 112,887 89,800
  Total liabilities and shareholders' equity $          1,160,639 $        1,014,303
Net interest income $      32,154 $               26,023
Interest rate spread1 3.73% 3.57%
Net interest margin2 3.92% 3.67%
Average interest earning assets to interest-bearing liabilities 145.8% 134.9%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
2 Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. and Subsidiaries Orange County Bancorp, Inc. Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited) Net Interest Margin Analysis (unaudited) Selected Financial Data (unaudited) Condensed Financial Information (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data) (dollar amounts in thousands) (Dollar Amounts in thousands except per share data) (Dollar Amounts in thousands except per share data)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  For the Quarter Ended Nine Months Ended
September 30, December 31, September 30, 2019 2018 2019 2018 Three Months Ended September 30, September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018 As of
2019 2018 2018 INTEREST INCOME 2019 2018 Performance Ratios1 Condensed Balance Sheets September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643 Average Balance Interest Average Rate Average Balance Interest Average Rate Return on average assets 1.03% 0.98% 0.81% 0.98% 0.76% 0.94% 0.65%
Interest on investment securities: Assets: Return on average equity 10.67% 10.06% 8.28% 10.31% 9.03% 9.68% 7.33% Cash and Cash Equivalents $         65,667 $        80,884 $         48,994 $          18,374 $        16,081
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766 Loans Receivable $             841,944 $      10,680 5.07% $           639,478 $                 8,135 5.09% Interest rate spread 3.76% 3.71% 3.81% 3.83% 3.54% 3.73% 3.57% Total Investment Securities 258,970 252,843 252,879 258,058 284,277
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115 Investment securities 262,659 1,826 2.78% 290,136 1,517 2.09% Net interest margin 3.98% 3.91% 3.97% 3.97% 3.66% 3.92% 3.67% Loans, net 855,899 811,892 765,885 726,413 673,898
Interest on Federal funds sold and other 282 175 636 468 Other interest-earning assets 44,352 282 2.54% 27,671 175 2.53% Efficiency Ratio 67.29% 68.68% 71.54% 69.23% 72.92% 70.08% 76.20% Other Assets 63,801 63,513 63,684 62,028 95,627
Loans 868,244 737,076 684,020 Total interest earning assets 1,148,955 12,788 4.45% 957,285 9,827 4.11% Total Assets $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992 Non-interest earning assets 70,111 68,287 Noninterest income to average assets 0.90% 0.81% 0.80% 0.84% 0.89% 3.06% 3.32%
Loans, net 855,899 726,413 673,898   Total assets $          1,219,066 $        1,025,572 Noninterest expense to average assets 3.14% 3.11% 3.25% 3.19% 3.18% 3.06% 3.32% Total Deposits  $     1,104,578 $    1,072,514 $       995,417 $        905,008 $      949,777
INTEREST EXPENSE Average interest-earning assets to average interest-bearing liabilities 147.32% 142.87% 142.89% 140.40% 138.38% 145.79% 134.94% FHLB Advances & note payable 8,013 8,028 13,043 38,557 18,071
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044 Liabilities and equity: Average equity to average assets 9.63% 9.72% 9.84% 9.50% 8.41% 9.73% 8.85% Other Liabilities 13,250 12,772 11,868 12,768 13,269
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598 NOW accounts $             186,627 $           117 0.25% $           151,903 $                      37 0.10% Dividend payout ratio 28.36% 31.87% 40.31% 34.46% 38.87% 32.69% 43.08% Total Liabilities 1,125,841 1,093,315 1,020,328 956,333 981,117
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188 Savings and money market accounts 494,038 861 0.70% 422,936 369 0.35% Total Shareholder Equity 118,496 115,818 111,115 108,540 88,766
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139 Time deposits 91,241 309 1.35% 104,242 224 0.86% As of the Quarter Ended Total Liabilities and Shareholders Equity $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969 Total interest-bearing deposits 771,906 1,287 0.67% 679,082 630 0.37% September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
Other assets 9,647 10,064 42,946 FHLB Advances and other borrowings 8,021 66 3.29% 23,033 100 1.74% Three Months Ended Nine Months Ended
NET INTEREST INCOME 11,435 9,097 32,154 26,023 Total interest bearing liabilities 779,927 1,353 0.69% 702,115 730 0.42% Loans to Deposits 78.61% 76.80% 78.09% 81.44% 72.02% Condensed Income Statements September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883 Non-interest bearing deposits 308,192 222,488 Noninterest bearing deposits to total deposits 30.12% 28.58% 27.79% 26.57% 26.03%
Provision for loan losses 640 540 1,660 1,825 Other non-interest bearing liabilities 13,530 12,136 Interest Income $         12,788 $        11,775 $         11,050 $          10,708 $          9,827 $ 35,613 $ 27,992
LIABILITIES AND STOCKHOLDERS' EQUITY   Total liabilities 1,101,649 936,739 Share Data: Interest Expense 1,353 1,205 902 818 730 3,459 1,969
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198   Total shareholders' equity 117,417 88,835 Shares outstanding 4,467,747 4,481,122 4,490,047 4,481,726 3,921,243 Net Interest Income 11,435 10,569 10,149 9,890 9,097 32,154 26,023
Deposits:   Total liabilities and shareholders' equity $          1,219,066 $        1,025,574 Book value per common share $    26.52 $      25.85 $    24.75 $      24.22 $    22.64 Provision for Loan Loss 640 420 600 640 540 1,660 1,825
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME Tangible book value per common share2 $    24.80 $      24.12 $    23.00 $      22.46 $    20.61 Noninterest Income 2,746 2,342 2,228 2,224 2,569 7,734 7,533
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714 Net interest income $      11,435 $                 9,097 Noninterest Expense 9,570 8,960 9,007 8,455 8,635 27,955 25,570
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359 Interest rate spread1 3.76% 3.69% Capital Ratios3 Income before income tax expense 3,971 3,532 2,770 3,019 2,491 10,273 6,161
Investment advisory income 1,125 1,123 3,381 3,282 Net interest margin2 3.98% 3.80% Tier 1 capital (to adjusted total assets) 8.95% 9.23% 9.41% 9.67% 8.77% Income Tax Expense 810 719 543 404 463 2,073 1,223
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) - Average interest earning assets to interest-bearing liabilities 147.3% 136.3% Common equity Teir 1 capital (to risk weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93% Net income $           3,161 $          2,812 $           2,227 $            2,614 $          2,028 $   8,200 $   4,938
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516 Tier 1 capital (to risk-weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93%
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662 Notes: Total capital (to risk-weighted assets) 13.41% 13.80% 14.27% 14.93% 14.19%
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities   Earnings per Share $            0.71 $            0.63 $            0.50 $             0.60 $           0.51 $    1.84 $    1.39
TOTAL LIABILITIES 1,125,841 956,333 981,117 2 Net interest margin is the annualized net interest income divided by average interest-earning assets. Notes:
OTHER OPERATING EXPENSES 1   Performance ratios are annualized.
STOCKHOLDERS' EQUITY Salaries 3,658 3,288 10,661 9,542 Orange County Bancorp, Inc. and Subsidiaries 2   Tangible book value per share is a non-GAAP measure and equals total sharholders' equity, less goodwilland other intangible assets, divided by shares outstanding.
Common stock, $0.50 par value; 15,000,000 shares authorized; Employee benefits 1,816 1,472 5,164 4,305 Net Interest Margin Analysis (unaudited) 3   Represents Orange County Bank & Trust ratios
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively Occupancy expense 879 831 2,653 2,504 (dollar amounts in thousands)
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at Professional fees 672 627 1,976 2,187
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973 Directors' fees and expenses 282 248 822 733 Nine Months Ended September 30,
Surplus 84,849 85,496 69,307 Computer software expense 821 704 2,218 2,085 2019 2018
Undivided profits 36,728 30,956 29,246 FDIC assessment - 154 245 380 Average Balance Interest Average Rate Average Balance Interest Average Rate
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743) Advertising expenses 324 304 825 678 Assets:
Treasury stock, at cost (946) (1,192) (1,017) Advisor expenses related to trust income 213 200 631 581 Loans Receivable $             800,153 $      30,116 5.02% $           634,398 $               22,643 4.76%
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766 Telephone expenses 115 115 339 357 Investment securities 257,669 4,861 2.52% 295,946 4,881 2.20%
Intangible amortization 71 71 214 214 Other interest-earning assets 36,364 636 2.33% 35,943 468 1.74%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883 Other 719 621 2,208 2,004 Total interest earning assets 1,094,186 35,613 4.34% 946,103 27,992 3.94%
TOTAL OTHER OPERATING EXPENSES 9,570 8,635 27,956 25,570 Non-interest earning assets 66,453 68,199
Book value per share $              26.52 $                       24.11 $                22.38   Total assets $          1,160,639 $        1,014,302
Tangible book value per share $              24.80 $                       22.36 $                20.38 Income before income taxes 3,971 2,491 10,272 6,161
Liabilities and equity:
Provision for income taxes 810 463 2,073 1,223 NOW accounts $             183,613 $           205 0.15% $           152,468 $                    105 0.09%
NET INCOME $                3,161 $           2,028 $           8,199 $           4,938 Savings and money market accounts 459,673 2,062 0.60% 420,528 939 0.30%
Time deposits 93,743 919 1.31% 105,071 598 0.76%
Earnings per share $                  0.71 $             0.51 $             1.84 $             1.39 Total interest-bearing deposits 737,029 3,186 0.58% 678,066 1,642 0.32%
FHLB Advances and other borrowings 13,510 273 2.69% 23,069 327 1.89%
Cash dividends declared per share $                  0.20 $             0.20 $             0.60 $             0.60 Total interest bearing liabilities 750,539 3,459 0.61% 701,135 1,969 0.37%
Non-interest bearing deposits 283,976 210,705
Weighted average shares outstanding 4,481,772 3,940,913 4,467,747 3,545,080 Other non-interest bearing liabilities 13,237 12,663
  Total liabilities 1,047,752 924,504
  Total shareholders' equity 112,887 89,800
  Total liabilities and shareholders' equity $          1,160,639 $        1,014,303
Net interest income $      32,154 $               26,023
Interest rate spread1 3.73% 3.57%
Net interest margin2 3.92% 3.67%
Average interest earning assets to interest-bearing liabilities 145.8% 134.9%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
2 Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. and Subsidiaries Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited) Net Interest Margin Analysis (unaudited) Selected Financial Data (unaudited) Condensed Financial Information (unaudited) Loan Portfolio (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data) (dollar amounts in thousands) (Dollar Amounts in thousands except per share data) (Dollar Amounts in thousands except per share data) (dollar amounts in thousands)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  For the Quarter Ended Nine Months Ended
September 30, December 31, September 30, 2019 2018 2019 2018 Three Months Ended September 30, September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018 As of LOANS September 30, June 30, March 31, December 31, September 30,
2019 2018 2018 INTEREST INCOME 2019 2018 Performance Ratios1 Condensed Balance Sheets September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 2019 2019 2019 2018 2018
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643 Average Balance Interest Average Rate Average Balance Interest Average Rate Return on average assets 1.03% 0.98% 0.81% 0.98% 0.76% 0.94% 0.65% Commercial:
Interest on investment securities: Assets: Return on average equity 10.67% 10.06% 8.28% 10.31% 9.03% 9.68% 7.33% Cash and Cash Equivalents $         65,667 $        80,884 $         48,994 $          18,374 $        16,081
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766 Loans Receivable $             841,944 $      10,680 5.07% $           639,478 $                 8,135 5.09% Interest rate spread 3.76% 3.71% 3.81% 3.83% 3.54% 3.73% 3.57% Total Investment Securities 258,970 252,843 252,879 258,058 284,277        Commercial & industrial $     220,157 $     212,866 $     190,323 $      179,533 $    171,240
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115 Investment securities 262,659 1,826 2.78% 290,136 1,517 2.09% Net interest margin 3.98% 3.91% 3.97% 3.97% 3.66% 3.92% 3.67% Loans, net 855,899 811,892 765,885 726,413 673,898        CRE* owner occupied 121,707 123,708 123,446 122,592 116,504
Interest on Federal funds sold and other 282 175 636 468 Other interest-earning assets 44,352 282 2.54% 27,671 175 2.53% Efficiency Ratio 67.29% 68.68% 71.54% 69.23% 72.92% 70.08% 76.20% Other Assets 63,801 63,513 63,684 62,028 95,627        CRE non-owner occupied 251,765 220,681 207,234 193,529 174,428
Loans 868,244 737,076 684,020 Total interest earning assets 1,148,955 12,788 4.45% 957,285 9,827 4.11% Total Assets $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883        CRE multifamily 143,308 144,387 140,510 142,160 127,974
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992 Non-interest earning assets 70,111 68,287 Noninterest income to average assets 0.90% 0.81% 0.80% 0.84% 0.89% 3.06% 3.32%        CRE construction 56,939 46,726 38,100 28,946 23,571
Loans, net 855,899 726,413 673,898   Total assets $          1,219,066 $        1,025,572 Noninterest expense to average assets 3.14% 3.11% 3.25% 3.19% 3.18% 3.06% 3.32% Total Deposits  $     1,104,578 $    1,072,514 $       995,417 $        905,008 $      949,777           Total commerical 793,875 748,368 699,614 666,760 613,717
INTEREST EXPENSE Average interest-earning assets to average interest-bearing liabilities 147.32% 142.87% 142.89% 140.40% 138.38% 145.79% 134.94% FHLB Advances & note payable 8,013 8,028 13,043 38,557 18,071
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044 Liabilities and equity: Average equity to average assets 9.63% 9.72% 9.84% 9.50% 8.41% 9.73% 8.85% Other Liabilities 13,250 12,772 11,868 12,768 13,269 Consumer:
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598 NOW accounts $             186,627 $           117 0.25% $           151,903 $                      37 0.10% Dividend payout ratio 28.36% 31.87% 40.31% 34.46% 38.87% 32.69% 43.08% Total Liabilities 1,125,841 1,093,315 1,020,328 956,333 981,117        Residential real estate 49,519 48,340 45,982 47,064 46,700
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188 Savings and money market accounts 494,038 861 0.70% 422,936 369 0.35% Total Shareholder Equity 118,496 115,818 111,115 108,540 88,766        Home equity loans and lines 11,840 12,432 10,939 10,728 10,528
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139 Time deposits 91,241 309 1.35% 104,242 224 0.86% As of the Quarter Ended Total Liabilities and Shareholders Equity $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883        Residential construction 13,276 14,960 16,344 12,381 9,818
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969 Total interest-bearing deposits 771,906 1,287 0.67% 679,082 630 0.37% September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018        Other 1,846 1,586 2,006 2,040 776
Other assets 9,647 10,064 42,946 FHLB Advances and other borrowings 8,021 66 3.29% 23,033 100 1.74% Three Months Ended Nine Months Ended           Total consumer 76,480 77,319 75,271 72,212 67,821
NET INTEREST INCOME 11,435 9,097 32,154 26,023 Total interest bearing liabilities 779,927 1,353 0.69% 702,115 730 0.42% Loans to Deposits 78.61% 76.80% 78.09% 81.44% 72.02% Condensed Income Statements September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018           TOTAL LOANS 870,355 825,687 774,885 738,972 681,538
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883 Non-interest bearing deposits 308,192 222,488 Noninterest bearing deposits to total deposits 30.12% 28.58% 27.79% 26.57% 26.03%
Provision for loan losses 640 540 1,660 1,825 Other non-interest bearing liabilities 13,530 12,136 Interest Income $         12,788 $        11,775 $         11,050 $          10,708 $          9,827 $ 35,613 $ 27,992        Deferrals and in-process (2,042) (1,947) 2,457 (1,896) 2,482
LIABILITIES AND STOCKHOLDERS' EQUITY   Total liabilities 1,101,649 936,739 Share Data: Interest Expense 1,353 1,205 902 818 730 3,459 1,969        Allowance for loan losses (12,345) (11,847) (11,457) (10,663) (10,122)
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198   Total shareholders' equity 117,417 88,835 Shares outstanding 4,467,747 4,481,122 4,490,047 4,481,726 3,921,243 Net Interest Income 11,435 10,569 10,149 9,890 9,097 32,154 26,023           Loans, net $     855,968 $     811,892 $     765,885 $      726,412 $    673,898
Deposits:   Total liabilities and shareholders' equity $          1,219,066 $        1,025,574 Book value per common share $    26.52 $      25.85 $    24.75 $      24.22 $    22.64 Provision for Loan Loss 640 420 600 640 540 1,660 1,825
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME Tangible book value per common share2 $    24.80 $      24.12 $    23.00 $      22.46 $    20.61 Noninterest Income 2,746 2,342 2,228 2,224 2,569 7,734 7,533 * CRE = Commercial Real Estate loans
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714 Net interest income $      11,435 $                 9,097 Noninterest Expense 9,570 8,960 9,007 8,455 8,635 27,955 25,570
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359 Interest rate spread1 3.76% 3.69% Capital Ratios3 Income before income tax expense 3,971 3,532 2,770 3,019 2,491 10,273 6,161
Investment advisory income 1,125 1,123 3,381 3,282 Net interest margin2 3.98% 3.80% Tier 1 capital (to adjusted total assets) 8.95% 9.23% 9.41% 9.67% 8.77% Income Tax Expense 810 719 543 404 463 2,073 1,223
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) - Average interest earning assets to interest-bearing liabilities 147.3% 136.3% Common equity Teir 1 capital (to risk weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93% Net income $           3,161 $          2,812 $           2,227 $            2,614 $          2,028 $   8,200 $   4,938
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516 Tier 1 capital (to risk-weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93%
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662 Notes: Total capital (to risk-weighted assets) 13.41% 13.80% 14.27% 14.93% 14.19%
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities   Earnings per Share $            0.71 $            0.63 $            0.50 $             0.60 $           0.51 $    1.84 $    1.39
TOTAL LIABILITIES 1,125,841 956,333 981,117 2 Net interest margin is the annualized net interest income divided by average interest-earning assets. Notes:
OTHER OPERATING EXPENSES 1   Performance ratios are annualized.
STOCKHOLDERS' EQUITY Salaries 3,658 3,288 10,661 9,542 Orange County Bancorp, Inc. and Subsidiaries 2   Tangible book value per share is a non-GAAP measure and equals total sharholders' equity, less goodwilland other intangible assets, divided by shares outstanding.
Common stock, $0.50 par value; 15,000,000 shares authorized; Employee benefits 1,816 1,472 5,164 4,305 Net Interest Margin Analysis (unaudited) 3   Represents Orange County Bank & Trust ratios
issued and outstanding, 4,509,292 shares and 4,467,747 shares, respectively Occupancy expense 879 831 2,653 2,504 (dollar amounts in thousands)
at Sept. 30, 2019, 4,513,905 shares and 4,481,726 shares, respectively at Professional fees 672 627 1,976 2,187
Dec 31, 1018 and 3,921,243 and 3,966,521 shares, respectively at Sept. 30, 2018 2,255 2,266 1,973 Directors' fees and expenses 282 248 822 733 Nine Months Ended September 30,
Surplus 84,849 85,496 69,307 Computer software expense 821 704 2,218 2,085 2019 2018
Undivided profits 36,728 30,956 29,246 FDIC assessment - 154 245 380 Average Balance Interest Average Rate Average Balance Interest Average Rate
Accumulated other comprehensive loss, net of taxes (4,390) (8,986) (10,743) Advertising expenses 324 304 825 678 Assets:
Treasury stock, at cost (946) (1,192) (1,017) Advisor expenses related to trust income 213 200 631 581 Loans Receivable $             800,153 $      30,116 5.02% $           634,398 $               22,643 4.76%
TOTAL STOCKHOLDERS' EQUITY 118,496 108,540 88,766 Telephone expenses 115 115 339 357 Investment securities 257,669 4,861 2.52% 295,946 4,881 2.20%
Intangible amortization 71 71 214 214 Other interest-earning assets 36,364 636 2.33% 35,943 468 1.74%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    1,244,337 $                1,064,873 $         1,069,883 Other 719 621 2,208 2,004 Total interest earning assets 1,094,186 35,613 4.34% 946,103 27,992 3.94%
TOTAL OTHER OPERATING EXPENSES 9,570 8,635 27,956 25,570 Non-interest earning assets 66,453 68,199
Book value per share $              26.52 $                       24.11 $                22.38   Total assets $          1,160,639 $        1,014,302
Tangible book value per share $              24.80 $                       22.36 $                20.38 Income before income taxes 3,971 2,491 10,272 6,161
Liabilities and equity:
Provision for income taxes 810 463 2,073 1,223 NOW accounts $             183,613 $           205 0.15% $           152,468 $                    105 0.09%
NET INCOME $                3,161 $           2,028 $           8,199 $           4,938 Savings and money market accounts 459,673 2,062 0.60% 420,528 939 0.30%
Time deposits 93,743 919 1.31% 105,071 598 0.76%
Earnings per share $                  0.71 $             0.51 $             1.84 $             1.39 Total interest-bearing deposits 737,029 3,186 0.58% 678,066 1,642 0.32%
FHLB Advances and other borrowings 13,510 273 2.69% 23,069 327 1.89%
Cash dividends declared per share $                  0.20 $             0.20 $             0.60 $             0.60 Total interest bearing liabilities 750,539 3,459 0.61% 701,135 1,969 0.37%
Non-interest bearing deposits 283,976 210,705
Weighted average shares outstanding 4,481,772 3,940,913 4,467,747 3,545,080 Other non-interest bearing liabilities 13,237 12,663
  Total liabilities 1,047,752 924,504
  Total shareholders' equity 112,887 89,800
  Total liabilities and shareholders' equity $          1,160,639 $        1,014,303
Net interest income $      32,154 $               26,023
Interest rate spread1 3.73% 3.57%
Net interest margin2 3.92% 3.67%
Average interest earning assets to interest-bearing liabilities 145.8% 134.9%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities  
2 Net interest margin is the annualized net interest income divided by average interest-earning assets.

 

 

Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. and Subsidiaries Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc. Orange County Bancorp, Inc.
Consolidated Statements of Condition (unaudited) Consolidated Statements of Income (unaudited) Net Interest Margin Analysis (unaudited) Selected Financial Data (unaudited) Condensed Financial Information (unaudited) Loan Portfolio (unaudited) Deposit Portfolio (unaudited)
(dollar amounts in thousands except per share data) (dollar amounts in thousands except per share data) (dollar amounts in thousands) (Dollar Amounts in thousands except per share data) (Dollar Amounts in thousands except per share data) (dollar amounts in thousands) (dollar amounts in thousands)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  For the Quarter Ended Nine Months Ended
September 30, December 31, September 30, 2019 2018 2019 2018 Three Months Ended September 30, September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018 As of LOANS September 30, June 30, March 31, December 31, September 30,
2019 2018 2018 INTEREST INCOME 2019 2018 Performance Ratios1 Condensed Balance Sheets September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 2019 2019 2019 2018 2018 DEPOSIT TREND Sept 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
ASSETS Interest and fees on loans $              10,680 $           8,135 $         30,116 $         22,643 Average Balance Interest Average Rate Average Balance Interest Average Rate Return on average assets 1.03% 0.98% 0.81% 0.98% 0.76% 0.94% 0.65% Commercial: Demand Deposits $     332,681 $     306,471 $     276,580 $      240,432 $    247,270
Interest on investment securities: Assets: Return on average equity 10.67% 10.06% 8.28% 10.31% 9.03% 9.68% 7.33% Cash and Cash Equivalents $         65,667 $        80,884 $         48,994 $          18,374 $        16,081 NOW 183,883 186,938 188,112 159,465 166,180
Cash and due from banks $          65,667 $                     18,374 $              16,081 Taxable 1,695 1,212 4,345 3,766 Loans Receivable $             841,944 $      10,680 5.07% $           639,478 $                 8,135 5.09% Interest rate spread 3.76% 3.71% 3.81% 3.83% 3.54% 3.73% 3.57% Total Investment Securities 258,970 252,843 252,879 258,058 284,277        Commercial & industrial $     220,157 $     212,866 $     190,323 $      179,533 $    171,240 Money market accounts 365,501 356,072 312,885 294,497 328,630
Investment securities - available-for-sale 258,970 258,058 284,277 Tax exempt 131 305 516 1,115 Investment securities 262,659 1,826 2.78% 290,136 1,517 2.09% Net interest margin 3.98% 3.91% 3.97% 3.97% 3.66% 3.92% 3.67% Loans, net 855,899 811,892 765,885 726,413 673,898        CRE* owner occupied 121,707 123,708 123,446 122,592 116,504 Savings 132,110 129,852 122,119 111,936 108,567
Interest on Federal funds sold and other 282 175 636 468 Other interest-earning assets 44,352 282 2.54% 27,671 175 2.53% Efficiency Ratio 67.29% 68.68% 71.54% 69.23% 72.92% 70.08% 76.20% Other Assets 63,801 63,513 63,684 62,028 95,627        CRE non-owner occupied 251,765 220,681 207,234 193,529 174,428 Time 90,403 93,181 95,721 98,678 99,130
Loans 868,244 737,076 684,020 Total interest earning assets 1,148,955 12,788 4.45% 957,285 9,827 4.11% Total Assets $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883        CRE multifamily 143,308 144,387 140,510 142,160 127,974
Allowance for loan losses (12,345) (10,663) (10,122) TOTAL INTEREST INCOME 12,788 9,827 35,613 27,992 Non-interest earning assets 70,111 68,287 Noninterest income to average assets 0.90% 0.81% 0.80% 0.84% 0.89% 3.06% 3.32%        CRE construction 56,939 46,726 38,100 28,946 23,571     Total deposits $   1,104,578 $  1,072,514 $     995,417 $      905,008 $    949,777
Loans, net 855,899 726,413 673,898   Total assets $          1,219,066 $        1,025,572 Noninterest expense to average assets 3.14% 3.11% 3.25% 3.19% 3.18% 3.06% 3.32% Total Deposits  $     1,104,578 $    1,072,514 $       995,417 $        905,008 $      949,777           Total commerical 793,875 748,368 699,614 666,760 613,717
INTEREST EXPENSE Average interest-earning assets to average interest-bearing liabilities 147.32% 142.87% 142.89% 140.40% 138.38% 145.79% 134.94% FHLB Advances & note payable 8,013 8,028 13,043 38,557 18,071
Premises and equipment 14,503 13,934 13,900 Interest on savings and NOW accounts 978 406 2,267 1,044 Liabilities and equity: Average equity to average assets 9.63% 9.72% 9.84% 9.50% 8.41% 9.73% 8.85% Other Liabilities 13,250 12,772 11,868 12,768 13,269 Consumer: DEPOSIT ONE YEAR GROWTH ANALYSIS
Accrued interest receivable 4,327 3,008 3,886 Interest on time deposits 309 224 919 598 NOW accounts $             186,627 $           117 0.25% $           151,903 $                      37 0.10% Dividend payout ratio 28.36% 31.87% 40.31% 34.46% 38.87% 32.69% 43.08% Total Liabilities 1,125,841 1,093,315 1,020,328 956,333 981,117        Residential real estate 49,519 48,340 45,982 47,064 46,700 Growth
Cash surrender value of bank-owned life insurance 27,644 27,128 26,954 Interest on FHLB advances 21 54 136 188 Savings and money market accounts 494,038 861 0.70% 422,936 369 0.35% Total Shareholder Equity 118,496 115,818 111,115 108,540 88,766        Home equity loans and lines 11,840 12,432 10,939 10,728 10,528 September 30, 2019 % of Total Deposits September 30, 2018 % of Total Deposits $ %
Goodwill 5,359 5,359 5,359 Interest on note payable 45 46 137 139 Time deposits 91,241 309 1.35% 104,242 224 0.86% As of the Quarter Ended Total Liabilities and Shareholders Equity $     1,244,337 $    1,209,132 $     1,131,443 $      1,064,873 $    1,069,883        Residential construction 13,276 14,960 16,344 12,381 9,818 Demand Deposits $     332,681 30.1% $     247,270 26.0% $      85,410 34.5%
Intangible assets 2,321 2,535 2,582 TOTAL INTEREST EXPENSE 1,353 730 3,459 1,969 Total interest-bearing deposits 771,906 1,287 0.67% 679,082 630 0.37% September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018        Other 1,846 1,586 2,006 2,040 776 NOW 183,883 16.6% 166,179 17.5% 17,703 10.7%
Other assets 9,647 10,064 42,946 FHLB Advances and other borrowings 8,021 66 3.29% 23,033 100 1.74% Three Months Ended Nine Months Ended           Total consumer 76,480 77,319 75,271 72,212 67,821 Money market accounts 365,501 33.1% 328,630 34.6% 36,871 11.2%
NET INTEREST INCOME 11,435 9,097 32,154 26,023 Total interest bearing liabilities 779,927 1,353 0.69% 702,115 730 0.42% Loans to Deposits 78.61% 76.80% 78.09% 81.44% 72.02% Condensed Income Statements September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 September 30, 2018           TOTAL LOANS 870,355 825,687 774,885 738,972 681,538 Savings 132,110 12.0% 108,567 11.4% 23,544 21.7%
TOTAL ASSETS $    1,244,337 $                1,064,873 $         1,069,883 Non-interest bearing deposits 308,192 222,488 Noninterest bearing deposits to total deposits 30.12% 28.58% 27.79% 26.57% 26.03% Time 90,403 8.2% 99,130 10.4% (8,727) (8.8%)
Provision for loan losses 640 540 1,660 1,825 Other non-interest bearing liabilities 13,530 12,136 Interest Income $         12,788 $        11,775 $         11,050 $          10,708 $          9,827 $ 35,613 $ 27,992        Deferrals and in-process (2,042) (1,947) 2,457 (1,896) 2,482     Total deposits $   1,104,578 100.0% $     949,777 100.0% $    154,801 16.3%
LIABILITIES AND STOCKHOLDERS' EQUITY   Total liabilities 1,101,649 936,739 Share Data: Interest Expense 1,353 1,205 902 818 730 3,459 1,969        Allowance for loan losses (12,345) (11,847) (11,457) (10,663) (10,122)
NET INTEREST INCOME AFTER PROVISION 10,795 8,557 30,494 24,198   Total shareholders' equity 117,417 88,835 Shares outstanding 4,467,747 4,481,122 4,490,047 4,481,726 3,921,243 Net Interest Income 11,435 10,569 10,149 9,890 9,097 32,154 26,023           Loans, net $     855,968 $     811,892 $     765,885 $      726,412 $    673,898 Commercial $     516,794 46.8% $     423,401 44.6% $      93,393 22.1%
Deposits:   Total liabilities and shareholders' equity $          1,219,066 $        1,025,574 Book value per common share $    26.52 $      25.85 $    24.75 $      24.22 $    22.64 Provision for Loan Loss 640 420 600 640 540 1,660 1,825 Consumer 369,756 33.5% 330,930 34.8% 38,826 11.7%
Noninterest bearing $       332,681 $                   240,432 $            247,270 OTHER OPERATING INCOME Tangible book value per common share2 $    24.80 $      24.12 $    23.00 $      22.46 $    20.61 Noninterest Income 2,746 2,342 2,228 2,224 2,569 7,734 7,533 * CRE = Commercial Real Estate loans Municipal 218,027 19.7% 195,446 20.6% 22,582 11.6%
Interest bearing 771,897 664,576 702,507 Service charges on deposit accounts 253 234 695 714 Net interest income $      11,435 $                 9,097 Noninterest Expense 9,570 8,960 9,007 8,455 8,635 27,955 25,570 Total Deposits $   1,104,578 100.0% $     949,777 100.0% $    154,801 16.3%
Total deposits 1,104,578 905,008 949,777 Trust income 949 807 2,636 2,359 Interest rate spread1 3.76% 3.69% Capital Ratios3 Income before income tax expense 3,971 3,532 2,770 3,019 2,491 10,273 6,161
Investment advisory income 1,125 1,123 3,381 3,282 Net interest margin2 3.98% 3.80% Tier 1 capital (to adjusted total assets) 8.95% 9.23% 9.41% 9.67% 8.77% Income Tax Expense 810 719 543 404 463 2,073 1,223
FHLB advances 5,000 35,500 15,000 Investment securities gains - - (219) - Average interest earning assets to interest-bearing liabilities 147.3% 136.3% Common equity Teir 1 capital (to risk weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93% Net income $           3,161 $          2,812 $           2,227 $            2,614 $          2,028 $   8,200 $   4,938
Note payable 3,013 3,057 3,071 Earnings on bank-owned life insurance 176 176 516 516 Tier 1 capital (to risk-weighted assets) 12.16% 12.54% 13.01% 13.67% 12.93%
Accrued expenses and other liabilities 13,250 12,768 13,269 Other 243 229 725 662 Notes: Total capital (to risk-weighted assets) 13.41% 13.80% 14.27% 14.93% 14.19%
TOTAL OTHER OPERATING INCOME 2,746 2,569 7,734 7,533 1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liablities   Earnings per Share $            0.71 $            0.63 $            0.50 $             0.60 $           0.51 $    1.84 $    1.39
TOTAL LIABILITIES 1,125,841 956,333 981,117 2 Net interest margin is the annualized net interest income divided by average interest-earning assets. Notes:
OTHER OPERATING EXPENSES