Orange County Bancorp, Inc. · NASDAQ:OBT
Orange County Bancorp — Stephens Inc. Bank Forum September 2021
15 slides from Orange County Bancorp's conference presentation, Sep 22, 2021
Slide 1: Stephens Inc. Bank Forum September 2021
Stephens Inc. Bank Forum September 2021
Slide 2: Forward Looking Statements
Forward Looking Statements Forward - Looking Statements This presentation contains, and future oral and written statements by us and our management may contain, forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
Slide 3: Company Background and Financial Snapshot
NIM 3.18% ROAA 1.09% ROAE 14.95% Efficiency Ratio 60.41% TCE/TA 2 6.54% Tier 1 Leverage 3 7.56% Tier 1 Capital Ratio 3 12.13% Total Capital Ratio 3 13.38% MRQ NCOs / Average Loans 0.00% NPAs / Assets 0.12% Loan Loss Reserves / Gross Loans 1.32% YTD Profitability Regulatory Capital Asset Quality Fran
Slide 4: Structure & Scope: Balanced, Client-Driven Business Model
Structure & Scope Balanced, Client - Driven Business Model 4 Business Banking Private Banking Orange Wealth Management • 14 branches • Focus on small to medium sized businesses in the communities served • Seasoned lenders with significant regional and industry expertise • Comprehensive product offer
Slide 5: Franchise Scarcity Value in Highly Attractive Markets
Franchise Scarcity Value in Highly Attractive Markets 5 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 . Note: Deposit data as of June 30, 2020 Source: FDIC, S
Slide 6: Business Strategy
Business Strategy 6 Note: Financial data as of June 30, 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 bank’
Slide 7: Consistent History of Growth
$905 $1,083 $1,489 $1,872 2018 2019 2020 2021Q2 $109 $122 $135 $141 2018 2019 2020 2021Q2 $738 $892 $1,083 $1,178 2018 2019 2020 2021Q2 $1,066 $1,230 $1,665 $2,052 2018 2019 2020 2021Q2 Consistent History of Growth 7 Current Success is Attributed to Disciplined Organic Growth Gross Loans Ex. PPP ($M
Slide 8: Strong and Consistent Historical Profitability
3.71 3.88 3.36 3.18 3.30 3.33 3.09 3.13 2018 2019 2020 YTD 2021 OBT Local Peers $35.9 $43.3 $48.7 $28.4 $10.0 $9.8 $11.4 $5.9 $45.9 $53.1 $60.1 $34.3 2018 2019 2020 YTD 2021 Net Interest Income Noninterest Income 0.73% 0.97% 0.76% 1.09% 8.18% 9.94% 9.02% 14.95% 2018 2019 2020 YTD 2021 ROAA ROAE $7.6
Slide 9: Loan Composition
Loan Composition 9 1) CRE Loans as a % of Total Risked - Based Capital; Bank - level regulatory data 2) Excluding PPP loans Note : Financial data as of June 30, 2021 CRE 61% C&I 19% CRE Construction 5% Residential RE 5% Home Equity 1% Consumer 1% PPP 8% Total Loans: $ 1.3 Billion 376% CRE Concentrat
Slide 10: Leading Core Deposit Franchise
0.07% 0.17% 0.33% 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 11: Second Quarter 2021 Highlights & Below Peer Valuation
Second Quarter 2021 Highlights & Below Peer Valuation 11 ▪ Significant organic growth continues ― QoQ gross loan growth ex. PPP was 27.0% (annualized) ― Deposit inflows continue ▪ Solid profitability metrics ― Annualized ROAA and ROAE of 1.05% and 14.97% ▪ Credit quality remains strong ― Net charge
Slide 12: Investment Highlights
Strong, Low Cost Deposit Base: 35% Noninterest bearing, 17bps 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 Strong and Experienced Mana
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Slide 14: Executive Management Team
Executive Management Team 14 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. Gilf
Slide 15: Non-GAAP Reconciliation
Dollar Values in Thousands As of the Year Ended December 31, 6 months Ended, 2018 2019 2020 6/30/2021 Total Common Equity 109,279 122,063 135,423 140,911 Goodwill 5,359 5,359 5,359 5,359 Other Intangibles 2,535 2,249 1,963 1,821 Less: Total Intangible Assets 7,894 7,608 7,322 7,180 Tangible Common E
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