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ORANGE Bank & Trust COMPANY Where the brightest bankers live . Orange County Bancorp , Inc. Announces Record First Quarter 2021 Results May 3 , 2021 FOR IMMEDIATE RELEASE Orange County Bancorp , Inc. Announces Record First Quarter 2021 Results • Net Income for Q1 2021 increased by $ 2.5 million , or 103 % , to a record $ 5.03 million compared to Q1 2020 • Return on average assets for Q1 2021 rose 37 basis points year - over - year to 1.1 % • Return on common equity for Q1 2021 rose 688 basis points year - over - year to 14.9 % • Loan loss provision for Q1 2021 of $ 66 thousand was $ 1.1 million below the same period last year due to stabilizing credit trends . Average Loans ( net of PPP ) for Q1 2021 increased 18.5 % year - over - year , to $ 1.1 billion Average Demand Deposits grew 60.1 % year - over - year to $ 552.4 million • Total Assets grew $ 243.8 million , or 14.6 % from year - end 2020 to $ 1.9 billion • Trust and asset advisory business revenue increased 18.6 % to $ 2.3 million for the quarter MIDDLETOWN , N.Y. , MAY 3 , 2021 - 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 net income of $ 5.03 million , or $ 1.12 per share , for the three months ended March 31 , 2021. This compares with net income of $ 2.48 million , or $ 0.55 per share , for the three months ended March 31 , 2020 . " I am extremely proud of the results our team produced this quarter , " said Orange County Bancorp President & CEO , Michael Gilfeather . " They reflect the earnings power of our focused and deliberate strategy to grow the Bank and make it a more accessible and important partner for our clients in Orange , Rockland and Westchester Counties . The momentum we were building in 2020 , despite the considerable challenges presented by COVID , carried into the first quarter of 2021 , resulting in 105 % year - over - year growth in net income to a record of over $ 5 million . Our core lending business has been and remains strong , with loan growth , net of PPP , up over 18.5 % in the first quarter of 2021 versus the same period last year . Many of the compelling opportunities reflected in these figures emerged late last year and continued into the recent quarter . While new loan demand is weighted toward commercial real estate , for which the Bank remains well within conservative concentration limits , overall loan activity remains diverse across both industries and the region we serve . Additionally , despite meaningful growth in the size of our loan portfolio , improving economic and credit trends allowed us to reduce our provision for loan losses more than $ 1 million versus the same quarter last year . Loans on deferral also continued to decline , finishing the first quarter at just over $ 32 million , or 2.6 % of our loan portfolio , down from nearly 30 % at the end of our June quarter in 2020 . As has been widely reported , the Federal Reserve responded to the financial shock of the pandemic last Spring by slashing interest rates and injecting unprecedented liquidity into the banking system . This helped stabilize the economy , but now has the banking system confronting the challenge of elevated deposit levels and narrower lending margins . We sought to manage this by attracting a greater share of business clients ' non - interest bearing deposits . The results surpassed expectations , with Average Demand Deposits increasing more than 60 % during the quarter versus the same period last year , while total deposits grew to over $ 1.7 billion . This effort blunted margin pressure during the quarter and should continue to reduce the deposit volatility that often accompanies Fed action in response to changing economic trends . Another significant development the Bank actively engaged in during the COVID - 19 pandemic was the federally - funded Paycheck Protection Program ( PPP ) . Our early decision to participate was driven by recognition of the vital role this program could play in supporting the economic viability of our business clients . While the Bank has enjoyed some revenue from the program , primarily through monthly interest rate accruals and the " true - up " fee when PPP loans are forgiven , we view this income as unique to the time and tangential to our core business . This said , we remain actively involved with clients on the second round of PPP financing and anticipate loan volume may well approach levels we saw during its initial phase . In addition to these activities , the Company's newly created Orange Wealth Management initiative , which includes our private bank , trust , and HVIA advisory business , saw revenue grow nearly 19 % , to $ 2.3 million , versus the same quarter last year . This growth stemmed primarily from a $ 41 million increase , to $ 1.2 billion , in assets under management ( AUM ) . To further support this program , the Bank hired veteran banker Ron Coccaro , who will be responsible for identifying and pursuing new growth and sales opportunities . We expect growth and opportunities to result from broader adoption and integration of our Wealth Solutions service , which combines best - in - class technology with top rated financial advisors to give our clients an accurate , comprehensive picture of their financial health and strategies for long - term growth and security . We are also currently building new branches in the Bronx and Nanuet , and anticipate opening the former in late June or early July , with the latter to follow shortly thereafter . We view these locations as very natural and logical extensions for the Bank , with our regional footprint and experience giving