Orange County Bancorp, Inc. Announces Record Earnings for Fiscal 2025

Rhea-AI Summary

Orange County Bancorp (Nasdaq: OBT) reported record fiscal 2025 results with net income of $41.6M (+49.3% YoY) and full-year EPS of $3.33. Net interest margin improved to 4.18% (annual) and 4.44% (Q4). Total loans rose to $2.0B (+7.4%) and total deposits to $2.3B (+7.3%). Book value per share increased to $21.27 (+30.1%).

Positive

• Net income +49.3% YoY to $41.6M for FY2025
• Net interest margin +35 bps to 4.18% for FY2025
• Total loans +7.4% to $2.0B; deposits +7.3% to $2.3B
• Book value per share +30.1% to $21.27; tangible book +31.8%

Negative

• Provision for credit losses still material at $7.8M for FY2025
• Noninterest expense rose $2.7M to $67.9M for FY2025

Key Figures

Net income (FY 2025): $41.6M EPS (FY 2025): $3.33 Net income (Q4 2025): $12.4M +5 more

8 metrics

Net income (FY 2025) $41.6M Year ended December 31, 2025 vs $27.9M in 2024 (up $13.7M, 49.3%)

EPS (FY 2025) $3.33 Basic and diluted EPS for 2025 vs $2.47 in 2024

Net income (Q4 2025) $12.4M Quarter ended December 31, 2025 vs $7.2M in Q4 2024

Net interest margin (FY) 4.18% Year ended December 31, 2025 vs 3.83% in 2024 (up 35 bps)

Net interest margin (Q4) 4.44% Q4 2025 vs 3.78% in Q4 2024 (up 66 bps)

Total loans $2.0B At December 31, 2025 vs $1.8B at December 31, 2024 (up $134.5M, 7.4%)

Total deposits $2.3B At December 31, 2025, up $157.0M (7.3%) from year-end 2024

Book value per share $21.27 At December 31, 2025 vs $16.35 at December 31, 2024 (up 30.1%)

Market Reality Check

Price: $32.56 Vol: Volume 78,765 is 2.11x th...

high vol

$32.56 Last Close

Volume Volume 78,765 is 2.11x the 20-day average of 37,369, showing elevated interest ahead of/around the report. high

Technical Price 32.09 is trading above the 200-day MA at 26.26 and within 1.9% of the 52-week high 32.71.

Peers on Argus

OBT is up 0.75% with strong earnings while key regional bank peers like BWFG, BR...

OBT is up 0.75% with strong earnings while key regional bank peers like BWFG, BRBS, FMAO, RBB, and GCBC each show gains between 0.75% and 1.63%, indicating a supportive sector backdrop alongside company-specific strength.

Historical Context

4 past events · Latest: Nov 24 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Nov 24	Dividend increase	Positive	+3.9%	Raised quarterly cash dividend to $0.18 per share for common stock.
Oct 29	Record earnings	Positive	+1.4%	Reported record Q3 2025 with strong NIM, loan and deposit growth.
Oct 08	Brand integration	Positive	+0.0%	Rebranded Hudson Valley Investment Advisors as Orange Investment Advisors.
Sep 10	Dividend declaration	Neutral	-0.4%	Announced quarterly $0.13 per share cash dividend on common stock.

Pattern Detected

Positive corporate actions and earnings have generally coincided with modestly positive or stable price reactions.

Recent Company History

Over the past six months, OBT has reported record results and capital actions. A $46M common equity raise and KBRA ratings highlighted balance-sheet strength, while multiple cash dividends underscored shareholder returns. Record Q3 2025 earnings showed expanding net interest margin and strong loan and deposit growth. The current record FY 2025 earnings and balance sheet expansion continue this trajectory of improving profitability, capital, and book value, building on earlier ratings recognition, rebranding of Orange Investment Advisors, and dividend increases.

Market Pulse Summary

This announcement highlights record FY 2025 performance for OBT, with net income of $41.6M, EPS of $...

Analysis

This announcement highlights record FY 2025 performance for OBT, with net income of $41.6M, EPS of $3.33, and net interest margin rising to 4.18%. Loan and deposit growth, improved efficiency ratios, and higher wealth-management income underscore broad-based strength. Recent history shows supportive ratings actions, dividend increases, and a prior equity raise bolstering capital. Investors may focus on future credit quality, deposit mix, and margin trends as key metrics to monitor after this report.

Key Terms

net interest margin, basis points, provision for credit losses, noninterest income, +4 more

8 terms

net interest margin financial

"Net Interest Margin grew 35 basis points to 4.18% for the year..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

"Net Interest Margin grew 35 basis points to 4.18% for the year..."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

provision for credit losses financial

"offset by an increase in provision for credit losses during the current period."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

noninterest income financial

"increases in net interest income and total noninterest income as well as a reduction..."

Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.

noninterest expense financial

"as well as a reduction in noninterest expense offset by an increase..."

Costs a company incurs that are not tied to borrowing or lending, such as employee pay, rent, technology, marketing, and office supplies. Think of a household: noninterest expense is everything you pay for living and running the home except mortgage or loan interest; for investors, it shows how efficiently a company runs its core operations and directly affects profit margins and the cash available for growth or dividends.

Bank Owned Life Insurance financial

"coupled with a Bank Owned Life Insurance gain related to policy proceeds..."

Bank owned life insurance is a type of life insurance a bank buys on the lives of its employees so the bank, rather than the employee’s family, receives the payout when a covered person dies. It acts like a long-term asset that pays income and can help cover costs such as employee benefits or unexpected losses; investors watch it because the holding affects a bank’s reported earnings, cash flow stability, and capital position much like a conservative investment portfolio would.

efficiency ratio financial

"Our efficiency ratio improved to 53.9% for the three months ended..."

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

assets under management financial

"held $1.9 billion in assets under management or advisory, as compared to $1.8 billion..."

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

AI-generated analysis. Not financial advice.

• Net Income increased $13.7 million, or 49.3%, to $41.6 million for the year ended December 31, 2025, from $27.9 million for the year ended December 31, 2024
• Net Interest Margin grew 35 basis points to 4.18% for the year ended December 31, 2025, from 3.83% for the year ended December 31, 2024
• Net Interest Margin also grew 66 basis points to 4.44% for the quarter ended December 31, 2025, from 3.78% for the quarter ended December 31, 2024
• Total Loans increased $134.5 million, or 7.4%, to $2.0 billion at December 31, 2025 as compared to $1.8 billion at December 31, 2024
• Total Deposits increased $157.0 million, or 7.3%, to $2.3 billion at December 31, 2025, from $2.2 billion at year-end 2024
• Book value per share grew $4.92, or 30.1%, to $21.27 at December 31, 2025, from $16.35 at December 31, 2024
• Trust and investment advisory income rose $1.9 million, or 15.2%, to $14.1 million for the year ended December 31, 2025, as compared to $12.3 million for the year ended December 31, 2024
  
  

MIDDLETOWN, N.Y., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Orange County Bancorp, Inc. (the “Company” - Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Orange Investment Advisors, Inc. (“OIA”), today announced net income of $12.4 million, or $0.93 per basic and diluted share, for the three months ended December 31, 2025. This compares with net income of $7.2 million, or $0.63 per basic and diluted share, for the three months ended December 31, 2024. The increase in earnings per share, basic and diluted, was due primarily to increases in net interest income and total noninterest income as well as a reduction in noninterest expense offset by an increase in provision for credit losses during the current period. For the twelve months ended December 31, 2025, net income was $41.6 million, or $3.33 per basic and diluted share, as compared to $27.9 million, or $2.47 per basic and diluted share, for the twelve months ended December 31, 2024.

Book value per share grew $4.92, or 30.1%, from $16.35 at December 31, 2024 to $21.27 at December 31, 2025. Tangible book value per share increased $5.03, or 31.8%, from $15.80 at December 31, 2024 to $20.83 at December 31, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were due to earnings growth during the twelve months ended December 31, 2025 and a reduction of unrealized losses in the available for sale securities (“AFS”) portfolio coupled with net proceeds of approximately $43 million from completion of a follow-on common stock offering during the second quarter of 2025.

“I am pleased to announce momentum we saw through the first three quarters of 2025 continued through year end,” said Orange County Bancorp President and CEO Michael Gilfeather, “resulting in record earnings of $12.4 million, or $0.93 per basic and diluted share, and $41.6 million, or $3.33 per basic and diluted share, for the fourth quarter and full year, respectively. These figures represent a $5.3 million, or 73.5%, increase in net income over the same quarter last year and $2.4 million, or 24.1%, increase over $10.0 million of net income last quarter. I am equally pleased they represent material contributions from every division of the Bank.

Total loans grew $14.6 million during the fourth quarter, and a solid $134.5 million, or 7.4%, for the full year as we continued to prudently manage credit in today’s interest rate environment. This increased our loan portfolio from $1.8 billion at the end of 2024 to $2.0 billion at year end 2025, a figure we aspired to just a handful of years ago. Loan growth was supported by strong economic activity in the region in which we operate, but remains subject to market volatility and broad macro and geopolitical risks. As such, we continue to employ cautious underwriting standards with new loans. The average yield on our loan portfolio was 6.24% and 6.11% for the fourth quarter and full year 2025, respectively, up 28 basis points, or 4.7%, and 10 basis points, or 1.7%, respectively from the same periods last year.

Deposit growth, specifically its composition and cost, was even more impressive. Total deposits grew $31.5 million, or 1.4%, for the fourth quarter, and $157.0 million, or 7.3%, for the full year, respectively, to $2.3 billion at December 31, 2025. The majority of this came in the form of lower cost deposits, as we focused internal efforts on organic deposit growth and sought to reduce our use of brokered funding. Our average cost of deposits for fourth quarter 2025 was 1.11%, down 19 basis points, or 14.6%, from fourth quarter 2024 and full year 2025 average cost of deposits was down 10 basis points, or 7.6%, versus full year 2024.

Not surprisingly, our continued loan and deposit growth and improved funding mix combined to bolster net interest margin for both the full year and fourth quarter. Net interest margin of 4.18% for the year ended December 31, 2025 increased 35 basis points, or 9.1%, over the prior year, while the 4.44% margin for the current quarter represents an 18 basis points, or 4.2% increase and 66 basis point, or 17.5%, increase over the prior quarter and the same quarter last year, respectively.

Wealth Management, which includes our trust and investment advisory businesses, also maintained its growth with a healthy contribution to our income. For the year and quarter ended December 31, 2025, trust and investment advisory income rose $1.9 million, or 15.2%, to $14.1 million and $451 thousand, or 13.7%, to $3.7 million as compared to the same periods the prior year, respectively. While growth in AUM stemmed in part from favorable equity market returns, focused efforts in our private bank initiative also continued to attract new customers and assets. I have repeatedly referred to wealth management as a highly valued component of our long-term strategy. We will continue to support its growth through services that enable us to capture an even greater share of our clients’ business and investment assets over time.

Though unsurprised by record earnings given years of planning and investment, I continue to be impressed by the power of our regional bank strategy to drive performance over time. And while realistic about risks and uncertainty confronting our industry, we continue to believe our seasoned and experienced team’s deep client relationships and ability to adapt as challenges – and opportunities – present themselves, remain key to our long-term success. This gives me pride in our most recent results and even greater confidence in our future. As always, I thank our committed employees and our customers and shareholders for their continued confidence and support.”

Fourth Quarter and Fiscal Year 2025 Financial Review

Net Income

Net income for the fourth quarter of 2025 was $12.4 million, an increase of $5.3 million, or 73.5%, from net income of $7.2 million for the fourth quarter of 2024. The increase represents a combination of increased net interest income and noninterest income as well as a reduction in noninterest expense offset by an increased provision for credit losses over the same quarter last year. Net income for the twelve months ended December 31, 2025 was $41.6 million, as compared to $27.9 million for the same period in 2024. The increase reflects the continued effect of net interest income growth combined with increased non-interest income as well as a reduced provision for credit losses during 2025 as compared to the prior year. The improvement in the provision for credit losses during 2025 as compared to 2024 was the result of lower specific reserves associated with nonperforming loans. The increase in non-interest income includes the recognition of a gain associated with the sale of a branch location coupled with a Bank Owned Life Insurance gain related to policy proceeds from a death benefit.

Net Interest Income

For the three months ended December 31, 2025, net interest income rose $5.3 million, or 22.8%, to $28.3 million, versus $23.1 million during the same period last year. The increase was driven primarily by a $3.3 million increase in interest and fees on loans during the current period. For the twelve months ended December 31, 2025, net interest income reached $104.1 million, representing an increase of $12.3 million, or 13.4%, over the twelve months ended December 31, 2024.

Total interest income rose $3.1 million, or 9.7%, to $35.3 million for the three months ended December 31, 2025, compared to $32.2 million for the three months ended December 31, 2024. The increase reflected a 12.0% growth in interest and fees associated with loans and a 2.1% increase in interest on Federal Funds Sold and other assets. For the twelve months ended December 31, 2025, total interest income rose $7.8 million, or 6.1%, to $135.0 million as compared to $127.2 million for the twelve months ended December 31, 2024.

Total interest expense decreased $2.2 million during the fourth quarter of 2025, to $7.0 million, as compared to $9.1 million during the fourth quarter of 2024. The decrease was primarily due to the continued reduction of interest costs associated with lower FHLB advances and borrowings as well as brokered deposits due to increased customer deposit levels during the quarter. Interest expense associated with FHLB advances drawn and other borrowings during the current quarter totaled $264 thousand as compared to $1.9 million during the fourth quarter of 2024. Interest expense related to time deposits totaled $958 thousand during the fourth quarter of 2025 as compared to $1.7 million during fourth quarter 2024. During the twelve months ended December 31, 2025, total interest expense fell $4.5 million, to $30.9 million, as compared to $35.5 million for the same period last year.

Provision for Credit Losses

The Company recognized a provision for credit losses of $1.6 million for the three months ended December 31, 2025, as compared to a net recovery of $51 thousand for the three months ended December 31, 2024. The current quarter provision included a charge-off of certain commercial and industrial loans and specific reserves associated with certain non-accrual loans as well as loan growth during the quarter. The 2024 recovery was due primarily to slower loan growth during the 2024 fourth quarter combined with the effect of lower reserves associated with certain types of loans closed during fourth quarter 2024. The allowance for credit losses to total loans was 1.45% as of December 31, 2025 versus 1.44% as of December 31, 2024. For the twelve months ended December 31, 2025, the provision for credit losses for loans totaled $7.8 million as compared to $9.6 million for the twelve months ended December 31, 2024. The twelve months ended December 31, 2024 did include a credit provision associated with the recovery of $1.9 million related to Signature Bank subordinated debt which was previously written off. No reserves for investment securities were recorded during the twelve months of 2025 or 2024.

Noninterest Income

Noninterest income rose $383 thousand, or 8.9%, to $4.7 million for the three months ended December 31, 2025 as compared to $4.3 million for the three months ended December 31, 2024. The growth included increased fee income in each of the Company’s fee income categories, including investment advisory income, trust income, and service charges on deposit accounts. For the twelve months ended December 31, 2025, noninterest income increased $7.2 million, to $23.2 million, as compared to $16.0 million for the twelve months ended December 31, 2024. The twelve month period in 2025 also included BOLI proceeds of $3.6 million and $932 thousand of insurance proceeds related to a claim for a previous fraudulent incident as well as a $1.2 million gain related to the sale of a branch location, partially offset by a $568 thousand loss connected to a $15 million repositioning of our investment securities portfolio.

Noninterest Expense

Noninterest expense was $17.8 million for the fourth quarter of 2025, reflecting a decrease of $655 thousand, or 3.6%, as compared to $18.5 million for the same period in 2024. The decrease in noninterest expense for the current three-month period was mainly due to expenses in fourth quarter 2024 related to a fraudulent incident at one of our branches as well as costs associated with litigation related to a nonperforming loan participation. Our efficiency ratio improved to 53.9% for the three months ended December 31, 2025 from 67.4% for the same period in 2024. For the twelve months ended December 31, 2025, our efficiency ratio also improved to 53.4% from 60.5% for the same period in 2024. Noninterest expense for the twelve months ended December 31, 2025 reached $67.9 million, reflecting a $2.7 million increase over noninterest expense of $65.2 million for the twelve months ended December 31, 2024. The Company continues to invest in growth, primarily within salaries and benefits, occupancy costs, information technology, deposit insurance, and other operating expenses.

Income Tax Expense

Provision for income taxes for the three months ended December 31, 2025 was $1.2 million, as compared to $1.8 million for the same period in 2024. The reduction in tax expense during the fourth quarter of 2025 was related to timing items adjusted for year end estimates. For the twelve months ended December 31, 2025, the provision for income taxes was $9.9 million, as compared to $6.9 million for the twelve months ended December 31, 2024. The increase for the twelve month period of 2025 was due to higher income before income taxes. Our effective tax rate for the three-month period ended December 31, 2025 was 9.0%, as compared to 20.1% for the same period in 2024. Our effective tax rate for the twelve-month period ended December 31, 2025 was 19.3%, as compared to 19.9% for the same period in 2024.

Financial Condition

Total consolidated assets increased $149.5 million, or approximately 6.0%, during 2025 to $2.7 billion at December 31, 2025. Growth of the balance sheet included increases in cash, loans, and deposits offset by paydowns of borrowings during the current twelve-month period.

Total cash and due from banks increased from $150.3 million at December 31, 2024, to $204.2 million at December 31, 2025, an increase of approximately $53.9 million, or 35.9%. This increase resulted primarily from increases in deposit balances and managed loan growth which elevated cash levels while reducing short-term borrowings.

Total investment securities decreased $28.2 million, or 6.2%, from $453.5 million at December 31, 2024 to $425.3 million at December 31, 2025. The decrease continues to be driven primarily by investment maturities and paydowns during the twelve months of 2025.

Total loans increased $134.5 million, or 7.4%, from $1.8 billion at December 31, 2024 to $2.0 billion at December 31, 2025. The increase was primarily driven by an increase of $118.0 million related to commercial real estate loans, $18.3 million increase in commercial real estate construction loans, and a $7.2 million increase in commercial and industrial loans as well as a $5.3 million increase in home equity loans offset by decreases in the residential real estate and consumer loan categories during 2025.

Total deposits increased $157.0 million, reaching $2.3 billion at December 31, 2025, from $2.2 billion at December 31, 2024. This increase was due primarily to $74.5 million of growth in non-interest bearing demand accounts, an $88.5 million increase in interest bearing demand accounts, and an $88.4 million increase in savings accounts. The increases in deposit accounts were offset by a $32.4 million decrease in money market accounts as well as a $62.0 million decrease in certificates of deposit, mainly associated with brokered deposits utilized by the Bank for short term funding purposes. Deposit composition at December 31, 2025 included 49.6% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remained stable and represented approximately 46% of total deposits at December 31, 2025, as compared to 39% of total deposits at December 31, 2024.

Total FHLBNY borrowings decreased by $113.5 million, or 91.9%, to $10.0 million as of December 31, 2025, as compared to $123.5 million at December 31, 2024. The decrease in borrowings was driven by increased deposits which outpaced loan growth in 2025 and allowed for paydown of borrowings while maintaining strong levels of cash at December 31, 2025. The decrease in borrowings reflects a strategic focus on actively managing liquidity sources and opportunities to reduce funding costs.

Stockholders’ equity increased approximately $98.8 million during 2025, reaching $284.4 million at December 31, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of a common stock offering which netted approximately $43 million, earnings of $41.6 million, and a decrease in unrealized losses of $19.9 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes.

At December 31, 2025, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital to average assets ratio was 12.67%, both common equity and Tier 1 capital to risk weighted assets were 17.33%, and total capital to risk weighted assets was 18.58%.

Wealth Management

At December 31, 2025, our Wealth Management Division, which includes trust and investment advisory, held $1.9 billion in assets under management or advisory, as compared to $1.8 billion at December 31, 2024, a 5.9% increase. Trust and investment advisory income for the year ended December 31, 2025 reached $14.1 million, representing an increase of 15.2%, or $1.9 million, as compared to $12.2 million for the year ended December 31, 2024.

The breakdown of trust and investment advisory assets as of December 31, 2025 and December 31, 2024, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
					At December 31, 2025						At December 31, 2024
					Amount			Percent			Amount			Percent
Investment Assets Under Management & Advisory					$	1,184,317		62.73	%		$	1,105,143		61.99	%
Trust Asset Under Administration & Management						703,544		37.27	%			677,723		38.01	%
Total					$	1,887,861		100.00	%		$	1,782,866		100.00	%

Loan Quality

At December 31, 2025, the Bank had total non-performing loans of $11.1 million, or 0.57% of total loans. Total non-accrual loans represented $11.1 million of loans as of December 31, 2025, compared to $6.3 million at December 31, 2024. The increase in non-accrual loans continues to represent several different loans which experienced payment disruption during 2025 and remain non-performing and in non-accrual status at year end.

Liquidity

Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of December 31, 2025, the Bank’s cash and due from banks totaled $204.2 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of December 31, 2025, the Bank’s investment in securities available for sale was $425.3 million, of which $126.3 million was not pledged as collateral or specifically designated to any borrowings. Additionally, as of December 31, 2025, the Bank’s overnight advance line capacity at the FHLBNY was $652.7 million, of which $87.4 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of December 31, 2025, the Bank’s unused borrowing capacity at the FHLBNY was $555.3 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. The combined availability at the Federal Reserve, between the Discount Window and the BIC program, was approximately $228.4 million. At December 31, 2025, the Bank was not utilizing any available funding from the Federal Reserve.

The Bank also considers brokered deposits an element of its overall deposit strategy. As of December 31, 2025, the Bank had brokered deposit arrangements with various terms totaling approximately $130.8 million.

Non-GAAP Financial Measure Reconciliations
The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
					December 31, 2025				December 31, 2024
					(Dollars in thousands except for share data)
Tangible Common Equity:
Total stockholders’ equity					$	284,364			$	185,531
Adjustments:
Goodwill						(5,359	)			(5,359	)
Other intangible assets						(535	)			(821	)
Tangible common equity					$	278,470			$	179,351
Common shares outstanding						13,368,447				11,350,158
Book value per common share					$	21.27			$	16.35
Tangible book value per common share					$	20.83			$	15.80
Tangible Assets
Total assets					$	2,659,377			$	2,509,927
Adjustments:
Goodwill						(5,359	)			(5,359	)
Other intangible assets						(535	)			(821	)
Tangible assets					$	2,653,483			$	2,503,747
Tangible common equity to tangible assets						10.49	%			7.16	%
NOTE: Share data and related information has been adjusted for the effect of the 2 for 1 stock split in January 2025

About Orange County Bancorp, Inc

Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Orange Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.7 billion in total assets. Orange Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

Forward Looking Statements

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

For further information:
Michael Lesler
EVP & Chief Financial Officer
mlesler@orangebanktrust.com
Phone: (845) 341-5111

ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(UNAUDITED)
	(Dollar Amounts in thousands except per share data)
									December 31, 2025				December 31, 2024
		ASSETS
Cash and due from banks									$	204,232			$	150,334
Investment securities - available-for-sale										419,406				443,775
(Amortized cost $472,097 at December 31, 2025 and $519,567 at December 31, 2024)
Restricted investment in bank stocks										5,917				9,716
Loans										1,950,284				1,815,751
Allowance for credit losses										(28,335	)			(26,077	)
	Loans, net									1,921,949				1,789,674
Premises and equipment, net										15,482				15,808
Accrued interest receivable										10,383				6,680
Bank owned life insurance										32,578				42,257
Goodwill										5,359				5,359
Intangible assets										535				821
Other assets										43,536				45,503
		TOTAL ASSETS							$	2,659,377			$	2,509,927
		LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
	Noninterest bearing								$	725,656			$	651,135
	Interest bearing								$	1,584,717				1,502,224
		Total deposits								2,310,373				2,153,359
FHLB advances, short term										-				113,500
FHLB advances, long term										10,000				10,000
Subordinated notes, net of issuance costs										24,555				19,591
Accrued expenses and other liabilities										30,085				27,946
		TOTAL LIABILITIES								2,375,013				2,324,396
		STOCKHOLDERS' EQUITY
Common stock, $0.25 par value; 30,000,000 shares authorized;
	13,376,464 and 11,366,608 issued; 13,368,447 and 11,350,158 outstanding,
	at December 31, 2025 and December 31, 2024, respectively									3,344				2,842
Surplus										164,592				120,896
Retained Earnings										164,434				129,919
Accumulated other comprehensive income (loss), net of taxes										(47,807	)			(67,751	)
Treasury stock, at cost; 8,017 and 16,450 shares at December 31,
	2025 and December 31, 2024, respectively									(199	)			(375	)
		TOTAL STOCKHOLDERS' EQUITY								284,364				185,531
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY							$	2,659,377			$	2,509,927
Share data has been adjusted to reflect the effect of the two-for-one stock split paid during January 2025

ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
								For Three Months Ended December 31,							Twelve Months Ended December 31,
									2025			2024				2025				2024
INTEREST INCOME
	Interest and fees on loans							$	30,541		$	27,263				115,797			$	106,030
	Interest on investment securities:
		Taxable							2,577			2,696				10,613				11,672
		Tax exempt							505			582				2,148				2,304
	Interest on Federal funds sold and other								1,700			1,665				6,424				7,221
		TOTAL INTEREST INCOME							35,323			32,206				134,982				127,227
INTEREST EXPENSE
	Savings and NOW accounts								5,331			5,308				20,977				20,475
	Time deposits								958			1,658				6,256				7,399
	FHLB advances and borrowings								264			1,932				2,186				6,666
	Subordinated notes								429			230				1,507				921
		TOTAL INTEREST EXPENSE							6,982			9,128				30,926				35,461
		NET INTEREST INCOME							28,341			23,078				104,056				91,766
Provision (recovery) for credit losses - investments									-			-				-				(1,900	)
Provision for credit losses - loans									1,557			(51	)			7,748				9,610
		NET INTEREST INCOME AFTER
			PROVISION FOR CREDIT LOSSES						26,784			23,129				96,308				84,056
NONINTEREST INCOME
	Service charges on deposit accounts								363			278				1,364				1,015
	Trust income								1,729			1,511				6,554				5,511
	Investment advisory income								2,005			1,772				7,552				6,738
	Investment securities gains(losses)								-			-				(568	)			-
	Earnings on bank owned life insurance								195			264				878				815
	Proceeds from bank owned life insurance								-			-				3,590				-
	Gain on sale of assets								-			-				1,236				-
	Other								396			480				2,542				1,893
		TOTAL NONINTEREST INCOME							4,688			4,305				23,148				15,972
NONINTEREST EXPENSE
	Salaries								7,298			7,177				28,394				27,475
	Employee benefits								2,415			2,243				9,622				8,938
	Occupancy expense								1,272			1,243				5,128				4,790
	Professional fees								1,798			1,601				6,191				5,931
	Directors' fees and expenses								306			272				1,245				1,053
	Computer software expense								1,929			1,761				7,813				5,952
	FDIC assessment								330			330				1,320				1,308
	Advertising expenses								622			409				1,973				1,575
	Advisor expenses related to trust income								24			18				90				113
	Telephone expenses								238			181				868				746
	Intangible amortization								72			72				286				286
	Other								1,507			3,159				4,970				7,043
		TOTAL NONINTEREST EXPENSE							17,811			18,466				67,900				65,210
	Income before income taxes								13,661			8,968				51,556				34,818
Provision for income taxes									1,231			1,804				9,942				6,935
		NET INCOME						$	12,430		$	7,164				41,614			$	27,883
Basic and diluted earnings per share								$	0.93		$	0.63			$	3.33			$	2.47
Weighted average shares outstanding									13,340,172			11,322,045				12,508,985				11,303,118
Share data has been adjusted to reflect the effect of the two-for-one stock split paid during January 2025

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
	Three Months Ended December 31,
		2025										2024
	Average Balance				Interest			Average Rate			Average Balance				Interest			Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,941,218			$	30,539		6.24	%		$	1,813,263			$	27,261		5.96	%
PPP Loans		129				2		6.15	%			174				2		4.56	%
Investment securities		422,023				2,970		2.79	%			456,552				3,207		2.79	%
Due from banks		163,654				1,700		4.12	%			143,908				1,665		4.59	%
Other		6,558				112		6.78	%			9,033				71		3.12	%
Total interest earning assets		2,533,582				35,323		5.53	%			2,422,930				32,206		5.27	%
Non-interest earning assets		102,182										94,263
Total assets	$	2,635,764									$	2,517,193
Liabilities and equity:
Interest-bearing demand accounts	$	426,045			$	723		0.67	%		$	339,233			$	402		0.47	%
Money market accounts		667,182				3,316		1.97	%			698,335				3,967		2.25	%
Savings accounts		346,366				1,292		1.48	%			269,244				939		1.38	%
Certificates of deposit		112,787				958		3.37	%			162,610				1,658		4.05	%
Total interest-bearing deposits		1,552,380				6,289		1.61	%			1,469,422				6,966		1.88	%
FHLB Advances and other borrowings		24,505				264		4.27	%			132,908				1,932		5.77	%
Subordinated notes		24,438				429		6.96	%			19,579				230		4.66	%
Total interest bearing liabilities		1,601,323				6,982		1.73	%			1,621,909				9,128		2.23	%
Non-interest bearing demand accounts		724,664										679,727
Other non-interest bearing liabilities		31,805										25,664
Total liabilities		2,357,792										2,327,300
Total shareholders' equity		277,972										189,893
Total liabilities and shareholders' equity	$	2,635,764									$	2,517,193
Net interest income					$	28,341									$	23,078
Interest rate spread1								3.80	%									3.04	%
Net interest margin2								4.44	%									3.78	%
Average interest earning assets to interest-bearing liabilities		158.2	%									149.4	%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
2 Net interest margin is the annualized net interest income divided by average interest-earning assets

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
	Twelve Months Ended December 31,
		2025										2024
	Average Balance				Interest			Average Rate			Average Balance				Interest			Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,895,818			$	115,785		6.11	%		$	1,760,057			$	106,022		6.01	%
PPP Loans		146				12		8.22	%			192				8		4.16	%
Investment securities		427,998				12,213		2.85	%			467,145				13,255		2.83	%
Due from banks		157,961				6,424		4.07	%			153,634				7,221		4.69	%
Other		6,938				548		7.90	%			8,218				721		8.75	%
Total interest earning assets		2,488,861				134,982		5.42	%			2,389,246				127,227		5.31	%
Non-interest earning assets		103,142										95,597
Total assets	$	2,592,003									$	2,484,843
Liabilities and equity:
Interest-bearing demand accounts	$	401,856			$	2,244		0.56	%		$	366,103			$	1,751		0.48	%
Money market accounts		687,865			$	14,314		2.08	%			670,231				15,199		2.26	%
Savings accounts		311,195			$	4,419		1.42	%			254,098				3,525		1.38	%
Certificates of deposit		162,991				6,256		3.84	%			168,202				7,399		4.39	%
Total interest-bearing deposits		1,563,907				27,233		1.74	%			1,458,634				27,874		1.91	%
FHLB Advances and other borrowings		49,584				2,186		4.41	%			126,149				6,666		5.27	%
Subordinated notes		21,064				1,507		7.15	%			19,553				921		4.70	%
Total interest bearing liabilities		1,634,555				30,926		1.89	%			1,604,336				35,461		2.20	%
Non-interest bearing demand accounts		691,456										675,983
Other non-interest bearing liabilities		29,422										26,440
Total liabilities		2,355,433										2,306,759
Total shareholders' equity		236,570										178,084
Total liabilities and shareholders' equity	$	2,592,003									$	2,484,843
Net interest income					$	104,056									$	91,766
Interest rate spread1								3.53	%									3.11	%
Net interest margin2								4.18	%									3.83	%
Average interest earning assets to interest-bearing liabilities		152.3	%									148.9	%
Notes:
1 The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
2 Net interest margin is the annualized net interest income divided by average interest-earning assets

ORANGE COUNTY BANCORP, INC.
SELECTED RATIOS AND OTHER DATA
(UNAUDITED)
									Three Months Ended December 31,						Twelve Months Ended December 31,
									2025			2024			2025			2024
Performance Ratios:
Return on average assets (1)									1.89	%		1.14	%		1.61	%		1.12	%
Return on average equity (1)									17.89	%		15.09	%		17.59	%		15.66	%
Interest rate spread (2)									3.80	%		3.04	%		3.53	%		3.11	%
Net interest margin (3)									4.44	%		3.78	%		4.18	%		3.83	%
Dividend payout ratio (4)									19.32	%		19.76	%		17.13	%		19.05	%
Non-interest income to average total assets									0.71	%		0.68	%		0.89	%		0.64	%
Non-interest expenses to average total assets									2.70	%		2.93	%		2.62	%		2.62	%
Average interest-earning assets to average interest-bearing liabilities									158.22	%		149.39	%		152.27	%		148.92	%
									At			At
									December 31, 2025			December 31, 2024
Asset Quality Ratios:
Non-performing assets to total assets									0.42	%		0.25	%
Non-performing loans to total loans									0.57	%		0.35	%
Allowance for credit losses to non-performing loans									254.58	%		413.99	%
Allowance for credit losses to total loans									1.45	%		1.44	%
Capital Ratios (5):
Total capital (to risk-weighted assets)									18.58	%		15.37	%
Tier 1 capital (to risk-weighted assets)									17.33	%		14.12	%
Common equity tier 1 capital (to risk-weighted assets)									17.33	%		14.12	%
Tier 1 capital (to average assets)									12.67	%		10.23	%

Notes
(1)		Annualized for the three and twelve month periods ended December 31, 2025 and 2024, respectively.
(2)		Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods.
(3)		The net interest margin represents net interest income as a percent of average interest-earning assets for the periods.
(4)		The dividend payout ratio represents dividends paid per share divided by net income per share.
(5)		Ratios are for the Bank only.

ORANGE COUNTY BANCORP, INC.
SELECTED OPERATING DATA
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
								Three Months Ended December 31,							Twelve Months Ended December 31,
									2025			2024				2025			2024
Interest income								$	35,323		$	32,206			$	134,982		$	127,227
Interest expense									6,982			9,128				30,926			35,461
Net interest income									28,341			23,078				104,056			91,766
Provision for credit losses									1,557			(51	)			7,748			7,710
Net interest income after provision for credit losses									26,784			23,129				96,308			84,056
Noninterest income									4,688			4,305				23,148			15,972
Noninterest expenses									17,811			18,466				67,900			65,210
Income before income taxes									13,661			8,968				51,556			34,818
Provision for income taxes									1,231			1,804				9,942			6,935
Net income								$	12,430		$	7,164			$	41,614		$	27,883
Basic and diluted earnings per share								$	0.93		$	0.63			$	3.33		$	2.47
Weighted average common shares outstanding									13,340,172			11,322,045				12,508,985			11,303,118
								At			At
								December 31, 2025			December 31, 2024
Book value per share								$	21.27		$	16.35
Net tangible book value per share (1)								$	20.83		$	15.80
Outstanding common shares									13,368,447			11,350,158
Notes:
(1)   Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by $5,359 in goodwill and $535, and $821 in other intangible assets for December 31, 2025 and December 31, 2024, respectively.

ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
								At December 31, 2025						At December 31, 2024
								Amount			Percent			Amount			Percent
Commercial and industrial (a)								$	249,633		12.80	%		$	242,390		13.35	%
Commercial real estate									1,480,062		75.89	%			1,362,054		75.01	%
Commercial real estate construction									99,262		5.09	%			80,993		4.46	%
Residential real estate									65,290		3.35	%			74,973		4.13	%
Home equity									22,618		1.16	%			17,365		0.96	%
Consumer									33,419		1.71	%			37,976		2.09	%
Total loans									1,950,284		100.00	%			1,815,751		100.00	%
Allowance for loan losses									28,335						26,077
Total loans, net								$	1,921,949					$	1,789,674
(a) - Includes PPP loans of:								$	124					$	170

ORANGE COUNTY BANCORP, INC.
DEPOSITS BY ACCOUNT TYPE
(UNAUDITED)
(Dollar Amounts in thousands)
								At December 31, 2025									At December 31, 2024
								Amount			Percent			Average Rate			Amount			Percent			Average Rate
Noninterest-bearing demand accounts								$	725,656		31.41	%		0.00	%		$	651,135		30.24	%		0.00	%
Interest bearing demand accounts									419,604		18.16	%		0.72	%			331,115		15.38	%		0.42	%
Money market accounts									646,688		27.99	%		1.86	%			679,082		31.54	%		2.15	%
Savings accounts									359,415		15.56	%		1.45	%			271,014		12.59	%		1.25	%
Certificates of Deposit									159,010		6.88	%		3.46	%			221,013		10.26	%		3.97	%
Total								$	2,310,373		100.00	%		1.12	%		$	2,153,359		100.00	%		1.31	%

ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
(Dollar Amounts in thousands)
									December 31, 2025				December 31, 2024
Non-accrual loans:
Commercial and industrial									$	1,577			$	293
Commercial real estate										8,690				6,000
Commercial real estate construction										-				-
Residential real estate										1				6
Home equity										844				-
Consumer										-				-
Total non-accrual loans										11,112				6,299
Accruing loans 90 days or more past due:
Commercial and industrial										18				-
Commercial real estate										-				-
Commercial real estate construction										-				-
Residential real estate										-				-
Home equity										-				-
Consumer										-				-
Total loans 90 days or more past due										18				-
Total non-performing loans										11,130				6,299
Other real estate owned										-				-
Other non-performing assets										-				-
Total non-performing assets									$	11,130			$	6,299
Ratios:
Total non-performing loans to total loans										0.57	%			0.35	%
Total non-performing loans to total assets										0.42	%			0.25	%
Total non-performing assets to total assets										0.42	%			0.25	%
Net-chargeoffs to total loans, YTD										0.29	%			0.48	%

FAQ

What were Orange County Bancorp (OBT) full-year 2025 net income and EPS?

Net income for fiscal 2025 was $41.6 million and EPS was $3.33. According to the company, this represents a 49.3% increase in net income versus 2024 and reflects higher net interest income and noninterest income.

How did Orange County Bancorp's (OBT) net interest margin change in 2025?

Net interest margin for the year rose to 4.18%, up 35 basis points year-over-year. According to the company, loan growth and a lower-cost deposit mix drove the margin expansion and improved funding mix.

What loan and deposit growth did Orange County Bancorp (OBT) report for 2025?

Total loans increased to $2.0 billion (+7.4%) and total deposits rose to $2.3 billion (+7.3%). According to the company, growth was led by commercial real estate and organic deposit inflows.

How did Orange County Bancorp's (OBT) capital metrics change in 2025?

Book value per share increased to $21.27 (+30.1%) and tangible book to $20.83 (+31.8%). According to the company, earnings growth, reduced unrealized AFS losses, and a $43M follow-on equity offering contributed.

What drove Orange County Bancorp's (OBT) noninterest income and expense in 2025?

Noninterest income rose to $23.2M, aided by BOLI proceeds and a branch sale gain; noninterest expense increased to $67.9M. According to the company, expense growth reflects investments in staff, IT, and operations.