The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Orange County Bancorp wrote of Signature investment

Orange County Bancorp in Middletown, N.Y., reported a sharp decrease in profit after it had to write off a $5 million investment in the failed Signature Bank.

The $2.5 billion-asset company said in a press release that its first-quarter net income fell 39% from a year earlier, to $4.8 million.

Orange County was left holding Signature subordinated debt when the bank collapsed in March.

“As closely as we monitor our investment portfolio, it is virtually impossible to anticipate such rapid – and highly unusual – deterioration of investment-grade debt,” the company said in its release.

Deposits rose by 2.6% from a year earlier, to $2.5 billion.

Several other banks have taken hits tied to Signature Bank.

AmeriServ Financial recently wrote off sub debt tied to Signature, while Republic First Bancorp held preferred stock in the lender. BayFirst Financial had a loan sale to Signature fall through.

Leave a Reply

Your email address will not be published. Required fields are marked *