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ORANGE Bank & Trust COMPANY Where the brightest bankers live . Orange County Bancorp , Inc. Announces Record Second Quarter 2021 Results August 13 , 2021 Orange County Bancorp , Inc. Announces Record Second Quarter 2021 Results • Net Income for Q2 2021 increased $ 2.3 million , or 80.4 % , to a record $ 5.2 million versus Q2 2020 • Return on average assets for Q2 2021 rose 28 basis points year - over - year to 1.05 % • Return on common equity for Q2 2021 rose 603 basis points year - over - year to 15.0 % • Provision for loan losses of $ 809 thousand declined 38 % versus the same period last year due to stabilizing credit trends . Average Loans ( net of PPP ) for Q2 2021 increased 22.3 % year - over - year , to $ 1.1 billion • Average Demand Deposits for Q2 2021 grew 37.4 % year - over - year to $ 627.8 million • Total Assets grew $ 387.3 million , or 23.3 % , from year - end 2020 to $ 2.1 billion at June 30 , 2021 • Trust and asset advisory business revenue increased 26.3 % , to $ 2.4 million , for Q2 2021 MIDDLETOWN , NY / ACCESSWIRE / August 12 , 2021 / Orange County Bancorp , Inc. ( the " Company " ) ( NASDAQ : OBT ) , parent company of Orange Bank & Trust Co. ( the " Bank " ) and Hudson Valley Investment Advisors , Inc. ( " HVIA " ) , today announced net income of $ 5.2 million , or $ 1.16 per basic and diluted share , for the three months ended June 30 , 2021. This compares with net income of $ 2.9 million , or $ 0.64 per basic and diluted share , for the three months ended June 30 , 2020. For the first six months of 2021 , net income increased by $ 4.9 million , or 90.8 % , over the prior year period , to $ 10.2 million , or $ 2.28 per basic and diluted share . This compares with net income of $ 5.4 million , or $ 1.19 per basic and diluted share , for the first six months of 2020 . " I am pleased to announce yet another record quarter of financial performance for the Bank and Company , " said Orange County Bancorp President & CEO , Michael Gilfeather . " These results reflect significant growth across all facets of our business , with particularly noteworthy increases in assets and loans as liquidity initiatives took hold and credit uncertainty gave way to an increasingly favorable business outlook . " " The quarter also represents a very important transition period for the organization , " Gilfeather added . " As the growth strategy we initiated several years ago continued to yield strong results , the Board and management team elected to leverage our success through a NASDAQ IPO . I am pleased to announce completion of our offering and subsequent NASDAQ Capital Market listing under the stock symbol " OBT " during the first week of August . Our transaction was upsized in the face of strong demand and culminated in the sale of 1.15 million shares to new investors at $ 33.50 per share , for gross proceeds of approximately $ 38.5 million . While technically a Q3 event , the groundwork for the transaction began in earnest in Q2 and entailed major contributions from all divisions of the Bank . It was a phenomenal success , particularly in conjunction with the financial results just reported , and positions the Company well for continued growth going forward . To further highlight our financial accomplishments in Q2 , net income of $ 5.2 million for the quarter pushed our first half net income over $ 10 million , nearly double the same period last year . Total assets of the Bank also exceeded $ 2 billion for the first time , increasing $ 387.3 million , or 23.3 % , from year - end 2020 . Total loans were $ 1.29 billion as of June 30 , 2021 , representing a $ 134.1 million , or 11.6 % , increase from $ 1.15 billion at December 31 , 2020. This growth was primarily due to increases in commercial real estate and Payroll Protection Program ( PPP ) loans . Net of PPP , loans grew $ 94.4 million , reflecting improving economic strength and business opportunities our clients are seeing across the regions we serve . Since the government approved a second round of PPP funding in early 2021 , the Bank's PPP loan balance has risen 58 % , from nearly $ 69 million at year - end 2020 to nearly $ 109 million at the close of Q2 2021. While the program ended on May 31 , 2021 we continue to work with our PPP borrowers to assess whether their loans qualify for government forgiveness and , if so , help them through the process . Deposit growth was also strong for the quarter , with total deposits of $ 1.87 billion as of June 30 , 2021 representing a $ 382.4 million , or 25.7 % , increase from $ 1.49 billion at December 31 , 2020. Over half of these deposits are in low to zero cost NOW and Demand Deposit accounts , resulting in our relatively low average cost of deposits . Our net interest margin for the three months ended June 30 , 2021 was 3.09 % , compared to 3.34 % for the three months ended June 30 , 2020 , and 3.18 % for the six months ended June 30 , 2021 , compared to 3.51 % for the same period last year . While we did experience margin compression , overall loan growth resulted in an increase in net interest income for the quarter of $ 2.9 million , or 24.2 % , versus the same period last year . For the six months ended June 30 , 2021 , net interest income increased $ 5.2 million , or 22.6 % , versus the same period last year . The Company's Wealth Management initiative , which launched earlier this year , also enjoyed strong growth . Orange Wealth Management is a platform that provides a comprehensive suite of wealth management services delivered through the Company's Private Banking and Trust Services Division and HVIA subsidiary . Revenues grew 26.3 % , to $ 2.4 million , for the second quarter 2021 verses the same quarter last year and are up 22.4 % for the