MIDDLETOWN, N.Y. - Orange County Bancorp (NASDAQ:ICBK), Inc. (NASDAQ:OBT), the holding company for Orange Bank & Trust Company and Hudson (NYSE:HUD) Valley Investment Advisors, Inc., has announced an increase in its quarterly cash dividend. The company stated that shareholders will receive a $0.25 dividend per share, marking a $0.02 rise from previous payouts. This dividend is slated for distribution on December 16, 2024, to shareholders who are on record as of December 4, 2024.
The company, which has roots extending back over 125 years, operates Orange Bank & Trust Company, a longstanding independent bank that has grown to approximately $2.5 billion in total assets. In addition to its banking operations, Orange County Bancorp also owns Hudson Valley Investment Advisors, Inc., a Registered Investment Advisor founded in 1996 and acquired by the company in 2012.
The announcement of the dividend increase reflects the company's financial health and commitment to providing value to its shareholders. The decision to raise the dividend is based on the company's performance and strategic initiatives that have presumably contributed to its growth and stability.
This move may be of interest to current and potential investors as it signals confidence in the ongoing profitability and financial management of the company. Dividends are often seen as a sign of a company's financial strength and its ability to generate cash flow.
The information regarding the dividend increase is based on a press release statement from Orange County Bancorp. The company has not provided additional commentary on the factors leading to the dividend increase or its future financial strategies. As with all investments, shareholders and potential investors are encouraged to consider the full range of factors affecting the company's performance before making investment decisions.
In other recent news, Orange County Bancorp reported its third-quarter financial performance for the year 2024, with an earnings per share (EPS) of $0.57. Excluding a Bank-Owned Life Insurance (NS:LIFI) (BOLI) death benefit of $340,000, the core EPS was calculated at $0.52. However, a significant loan loss provision taken against a large office loan participation impacted the EPS by approximately $0.79. Piper Sandler, having reviewed these results, adjusted its outlook on the company, reducing the price target from $69.00 to $66.00, while maintaining an Overweight rating.
In addition to the earnings report, Orange County Bancorp announced the appointment of Jonathan Schiller to its and the Bank's Boards of Directors, effective from October 1, 2024. Schiller brings a unique blend of scientific and business acumen, with a background in pharmacy and business, and experience as the founder and CEO of Hospicom Inc.
Further, Orange County Bancorp declared a cash dividend of $0.23 per share, demonstrating its financial health and commitment to its investors. Recent amendments to the company's bylaws now require directors to hold shares of the company's capital stock with a minimum fair market value of $1,000, a significant change from the previous requirement of owning $125,000 of the company's common stock. These developments indicate Orange County Bancorp's dedication to aligning the interests of its directors with those of its shareholders, reinforcing good governance practices.
InvestingPro Insights
Orange County Bancorp's decision to increase its quarterly dividend aligns with its strong financial performance and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $336.14 million and an attractive P/E ratio of 11.64, suggesting a potentially undervalued stock relative to earnings.
An InvestingPro Tip highlights that Orange County Bancorp has maintained dividend payments for 17 consecutive years, underscoring its consistent approach to rewarding shareholders. This track record of dividend stability complements the recent increase and may appeal to income-focused investors.
Moreover, the company's profitability is evident in its impressive operating income margin of 38.96% for the last twelve months as of Q3 2024. This robust margin indicates efficient operations and strong cost management, which likely contribute to the company's ability to increase dividends.
Another InvestingPro Tip notes that analysts predict the company will be profitable this year, which bodes well for the sustainability of the increased dividend. This positive outlook is further supported by the company's revenue growth of 4.93% over the last twelve months, demonstrating its ability to expand its business in a competitive banking environment.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Orange County Bancorp's financial position and future prospects.
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