Orange County Bancorp, Inc. · NASDAQ:OBT
Orange County Bancorp — IPO Roadshow (July 2021)
28 slides from Orange County Bancorp's IPO roadshow presentation, Jul 29, 2021
Slide 1: Investor Presentation July/August 2021
INVESTOR Presentation July/August 2021
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer Notice to and Undertaking by Recipients Orange County Bancorp, Inc. (“Orange,” the “Bank,” the “Company,” “we” or “us”) has filed a registration statement on Form S - 1 ( including a prospectus, which is preliminary and subject to completion) with the U.S. Securi
Slide 3: Offering Summary
Offering Summary 3 Issuer Exchange / Ticker Base Shares Offered Filing Range Base Offering Size 1 Use of Proceeds Lock - Up Bookrunners Expected Pricing Date Orange County Bancorp, Inc. NASDAQ Capital Market / “OBT” 900,000 $ 32.00 - $35.00 Approximately $30.15 million General corporate purposes, gr
Slide 4: Management Team
Management Team 4 Experienced Leadership Team with Strong Ties to the Community Mr. Gilfeather has been President and Chief Executive Officer of the Company and the Bank since April 2014 and a Director sin ce 2014. He brings over 35 years of experience to his leadership position. Mr. Gilfeather also
Slide 5: Investment Highlights
Strong, Low Cost Deposit Base: 50% Transaction Accounts, 16bps Total Cost 1 Highly Attractive Market Geography and Scarcity Value of Franchise Complementary Offerings in Private Banking and Trust & Wealth Businesses Demonstrated Loan Growth Driven by Differentiated Service Successful and Ongoing Exp
Slide 6: Franchise Overview
Franchise Overview 6 1) Recent approval of new branch in Nanuet, which is scheduled to open in the next 3 months 2) See Page 28 for non - GAAP reconciliation information Background ▪ Bank was established in 1892 and has operated successfully for over 125 years ▪ Headquartered in Middletown, NY ▪ Pre
Slide 7: Structure & Scope
Structure & Scope Balanced, Client - Driven Business Model 7 Business Banking Private Banking Orange Wealth Management • 14 branches • Focus on small to medium size businesses in the communities served • Seasoned lenders with significant regional and industry expertise • Comprehensive product offeri
Slide 8: Business Evolution and Milestones
Business Evolution and Milestones 8 In 2016, the Bank rebranded as Orange Bank & Trust Company to reflect its ambitions to expand in the Lower Hudson Valley region and the Westchester and Rockland county markets. Q4 2020: Growth to $1.9B in assets and achieves record net income 1892: Orange County T
Slide 9: Our History, Transformation and Significant Growth and Expansion
- 0.88 0.74 0.91 0.97 0.76 1.13 2019 2020 2021Q1 Peer Group OBT 7.47 6.72 9.19 9.94 9.02 14.94 2019 2020 2021Q1 Peer Group OBT $36.5 $40.2 $41.0 2019 2020 2021LTM 135 195 2014 2021Q1 $1,066 $1,230 $1,665 $1,909 $0 $500 $1,000 $1,500 $2,000 $2,500 2018 2019 2020 2021Q1 Return on Average Equity (%) Ou
Slide 10: Competitive Strengths
Competitive Strengths 10 Note: Financial data as of March 31, 2021 Premier commercial bank in the Lower Hudson Valley Attractive core deposit franchise Well positioned for a rising rate environment Private banking and wealth management Disciplined underwriting and credit administration Scalable oper
Slide 11: Franchise Scarcity Value in Highly Attractive Markets
Franchise Scarcity Value in Highly Attractive Markets 11 Attractive Demographics in a Large, Growing Addressable Market Median Household Income ($000) 1) Defined as Lower Hudson Valley region, includes Orange, Westchester, and Rockland counties. Community Bank defined as regulated depositories less
Slide 12: Business Strategy
Business Strategy 12 Note: Financial data as of March 31, 2021 Leverage Relationships to Drive Organic Growth Derive Loan Growth Through Differentiated Service Continue to Grow Core Deposit Franchise Continue to Build Fee - Based Business Capitalize on Market Disruption Strategic Expansion • The ban
Slide 13: Consistent History of Growth
$738 $892 $1,083 $1,110 2018 2019 2020 2021Q1 $109 $122 $135 $135 2018 2019 2020 2021Q1 $905 $1,083 $1,489 $1,734 2018 2019 2020 2021Q1 $1,066 $1,230 $1,665 $1,909 2018 2019 2020 2021Q1 Consistent History of Growth 13 Current Success is Attributed to Disciplined Organic Growth Gross Loans Ex. PPP ($
Slide 14: Diversified Revenue Sources
High Net Worth 46% Trust Assets 17% Individual 13% Special Needs Trust 11% Retirement 5% Corporations 4% Charity 4% Diversified Revenue Sources Note: Financial data as of March 31, 2021 unless otherwise noted Service Charges on Deposit Accounts 6% Trust Income 39% Investment Advisory Income 41% Earn
Slide 15: Strong and Consistent Historical Profitability
3.71 3.88 3.36 3.28 3.32 3.24 3.05 3.12 2018 2019 2020 YTD OBT Local Peers $35.9 $43.3 $48.7 $13.7 $10.0 $9.8 $11.4 $2.9 2018 2019 2020 2021Q1 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Net Interest Income Noninterest Income 0.73% 0.97% 0.76% 1.13% 8.18% 9.94% 9.02% 14.94% 2018 2019 2020
Slide 16: Loan Composition
Residential Real Estate 5% Home Equity 1% CRE 58% CRE Construction 6% PPP 10% C&I 19% Consumer 1% Loan Composition 16 Note: Financial data as of March 31, 2021 Total Loans: $1.2 Billion Highly Diversified Portfolio with Conservative Concentrations ▪ Strong asset quality, historically managed well th
Slide 17: Leading Core Deposit Franchise
0.08% 0.19% 0.40% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Avg. Fed Funds Rate OBT Local Peers Leading Core Deposit Franchise Areas of Focus • Keys to Success x Dedicated Deposit Relationship managers x Investment into Treasury / Cash management product suite • Escrow x Attractable DDA capture • Mu
Slide 18: Recent Developments: Q2 2021 Unaudited Preliminary Financial Results
Recent Developments Q2 2021 Unaudited Preliminary Financial Results 18 Q2 2021 Highlights Continued Balance Sheet and Net Income Growth: 1. Increased interest and fee income on increased loan balances, including PPP 2. Decline in cost of funds 3. Decline in provision for loan losses 4. Increase in n
Slide 19: Investment Highlights
Strong, Low Cost Deposit Base: 50% Transaction Accounts, 16bps Total Cost 1 Highly Attractive Market Geography and Scarcity Value of Franchise Complementary Offerings in Private Banking and Trust & Wealth Businesses Demonstrated Loan Growth Driven by Differentiated Service Successful and Ongoing Exp
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Slide 21: Available for Sale Securities Portfolio Composition
Available for Sale Securities Portfolio Composition 21 Note: Estimated fair value as of March 31, 2021 U.S. Government Agencies 22.4% Mortgage - backed securities 49.2% Corporate Securities 3.7% Municipal Securities 24.8%
Slide 22: Interest Rate Sensitivity
At March 31, 2021 Change in Interest Rates Net Interest Income Year 1 Change (basis points)¹ Year 1 Forecast Base Case (Dollars in thousands) Shock Up 400 bps 62,650 12.2% Shock Up 300 bps 60,888 9.0% Shock Up 200 bps 59,072 5.8% Shock Up 100 bps 57,447 2.8% Base 55,860 0.0% Shock Down 100 bps 54,77
Slide 23: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet 23 Source: S&P Global Market Intelligence Dollar Values in Thousands As of December 31, Quarter Ended, 2019 2020 3/31/2021 Assets Cash and due from banks 25,112 121,232 253,091 Investment securities — available-for-sale 254,915 330,105 359,372 Restricted investm
Slide 24: Consolidated Historical Income Statement
Consolidated Historical Income Statement 24 Source: S&P Global Market Intelligence Dollar Values in Thousands For the Year Ended December 31, Quarter Ended, 2019 2020 3/31/2021 Interest Income 48,121 53,461 14,762 Interest Expense 4,840 4,722 1,022 Net Interest Income 43,281 48,739 13,740 Provision
Slide 25: Top 10 Lending Relationships
Number of Total Outstanding Loan Loans Commitment Balance Percentage (Dollars in Thousands) Relationship 1 a 8 $21,918 $15,342 1.24% Relationship 2 b 5 $16,552 $13,552 1.10% Relationship 3 3 $15,970 $13,870 1.12% Relationship 4 c 5 $15,639 $15,638 1.27% Relationship 5 15 $15,261 $14,181 1.15% Relati
Slide 26: COVID-Impacted Portfolios
COVID - 19 Impacted Portfolios 26 COVID - 19 Loan Modifications Outstanding As Of 30 - Jun - 20 30 - Sep - 20 31 - Dec - 20 31 - Mar - 21 Industry Classification # Loans Total Loan Balance # Loans Total Loan Balance # Loans Total Loan Balance # Loans Total Loan Balance Real estate and rental & leasi
Slide 27: Board of Directors
1) Age as of March 31, 2021 2) To our knowledge, although there is no written agreement between members of the Morrison family to act in concert, relatives of director William D. Morrison and William D. Morrison beneficially owned collectively approximately 30.8% of our outstanding shares of common
Slide 28: Non-GAAP Reconciliation
Dollar Values in Thousands As of the Year Ended December 31, Quarter Ended, 2018 2019 2020 3/31/2021 Total Common Equity 109,279 122,063 135,423 135,081 Goodwill 5,359 5,359 5,359 5,359 Other Intangibles 2,535 2,249 1,963 1,892 Less: Total Intangible Assets 7,894 7,608 7,322 7,251 Tangible Common Eq