Orange County Bancorp, Inc. Announces Record First Quarter Earnings:

Rhea-AI Summary

Orange County Bancorp (Nasdaq: OBT) reported record Q1 2026 results with net income $11.3M (+29.6% YoY) and EPS $0.85. Net interest margin rose 45 bps to 4.40%. Total deposits grew $39.4M to $2.4B; total loans remained ~$2.0B. Wealth Management AUM fell to $1.6B and non-performing loans rose to $26.1M (1.34% of loans).

AI-generated analysis. Not financial advice.

Positive

• Net income +29.6% to $11.3M
• Net interest margin +45 bps to 4.40%
• Total deposits +$39.4M to $2.4B
• EPS +10.4% to $0.85
• Efficiency ratio improved to 55.9%

Negative

• AUM -13.0% to $1.6B
• Wealth Management income -5.0% ($3.3M)
• Total non-performing loans increased to $26.1M (1.34% of loans)
• Unrealized losses in AOCI increased approximately $2.8M

News Market Reaction – OBT

-6.15%

1 alert

-6.15% News Effect

On the day this news was published, OBT declined 6.15%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 Net Income: $11.3 million Q1 2026 EPS: $0.85 per share Net Interest Margin: 4.40% +5 more

8 metrics

Q1 2026 Net Income $11.3 million Quarter ended March 31, 2026; up from $8.7 million in Q1 2025

Q1 2026 EPS $0.85 per share Quarter ended March 31, 2026; up from $0.77 in Q1 2025

Net Interest Margin 4.40% Three months ended March 31, 2026; up from 3.95% in Q1 2025

Total Deposits $2.4 billion At March 31, 2026; up $39.4 million from year-end 2025

Total Loans $2.0 billion (approx.) At March 31, 2026; increased $1.7 million vs Dec 31, 2025

Wealth Mgmt Earnings $3.3 million Q1 2026; down $171 thousand vs Q1 2025

Non-performing Loans $26.1 million At March 31, 2026; 1.34% of total loans

Efficiency Ratio 55.9% Three months ended March 31, 2026; improved from 58.9% in 2025

Market Reality Check

Price: $34.12 Vol: Volume 29,329 is below 20...

low vol

$34.12 Last Close

Volume Volume 29,329 is below 20-day average of 82,588 (relative volume 0.36). low

Technical Price $35.39 is trading above the 200-day MA at $28.63 and 6.8% below the 52-week high of $37.9899.

Peers on Argus

OBT slipped 0.2% while key regional bank peers like BWFG, FMAO, RBB, and GCBC ga...

OBT slipped 0.2% while key regional bank peers like BWFG, FMAO, RBB, and GCBC gained between 2.08% and 3.74%, pointing to stock-specific dynamics rather than a sector-wide move.

Historical Context

5 past events · Latest: Feb 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 20	Dividend declaration	Positive	-3.2%	Announced a $0.18 per share cash dividend with specified record and pay dates.
Feb 11	Management hiring	Positive	+0.1%	Added two experienced portfolio managers to strengthen Orange Investment Advisors.
Feb 04	Full-year earnings	Positive	+4.6%	Reported record 2025 net income, EPS growth, NIM expansion, and loan/deposit growth.
Nov 24	Dividend increase	Positive	+3.9%	Raised cash dividend to $0.18 per share, signaling enhanced shareholder return.
Oct 29	Quarterly earnings	Positive	+1.4%	Record Q3 2025 results with higher net income, EPS, NIM, and balance sheet growth.

Pattern Detected

Positive operational updates and dividend news have generally seen constructive price reactions, with one notable negative divergence on a dividend declaration.

Recent Company History

Over the past six months, Orange County Bancorp has repeatedly reported record performance and shareholder returns. Record fiscal 2025 results on Feb 4, 2026 and strong Q3 2025 earnings on Oct 29, 2025 both coincided with positive price moves. Dividend declarations on Nov 24, 2025 and Feb 20, 2026 showed mixed reactions, including one negative divergence. The appointment of new portfolio managers in February 2026 aligned with a small gain. Today’s record Q1 2026 earnings continue the theme of expanding profitability, margin strength, and balance sheet growth.

Market Pulse Summary

The stock moved -6.2% in the session following this news. A negative reaction despite record Q1 earn...

Analysis

The stock moved -6.2% in the session following this news. A negative reaction despite record Q1 earnings would fit the occasional divergence seen after shareholder-friendly news, such as the February 2026 dividend. The quarter delivered net income of $11.3 million, EPS of $0.85, and an efficiency ratio of 55.9%, but also higher non-performing loans of $26.1 million and weaker Wealth Management earnings. If selling intensified, investors might be focusing on credit trends or AUM declines rather than headline profitability and margin strength.

Key Terms

net interest margin, basis points, provision for credit losses, tangible book value, +4 more

8 terms

net interest margin financial

"Net Interest Margin increased 45 basis points, or 11.4%, to 4.40%..."

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 increased 45 basis points, or 11.4%, to 4.40%..."

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

"reduction in provision for credit losses partially offset by an increase..."

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.

tangible book value financial

"Tangible book value per share increased $0.49, or 2.4%, from $20.83..."

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

assets under management financial

"our Wealth Management Division... held $1.6 billion in assets under management..."

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.

non-performing loans financial

"the Bank had total non-performing loans of $26.1 million, or 1.34% of total loans."

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

non-accrual loans financial

"Total non-accrual loans represented $26.1 million of loans as of March 31, 2026..."

A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.

allowance for credit losses financial

"The allowance for credit losses to total loans was 1.43% as of March 31, 2026..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. Not financial advice.

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• Net Income increased $2.6 million, or 29.6%, to $11.3 million for the quarter ended March 31, 2026, from $8.7 million for the quarter ended March 31, 2025, marking record first quarter earnings
• Net Interest Margin increased 45 basis points, or 11.4%, to 4.40% for the three months ended March 31, 2026, from 3.95% for the three months ended March 31, 2025
• Total Deposits increased $39.4 million, or 1.7%, to $2.4 billion at March 31, 2026, from $2.3 billion at year-end 2025
• Total Loans increased $1.7 million, or less than 1.0%, to remain relatively level at approximately $2.0 billion at March 31, 2026 and December 31, 2025
• Earnings per share grew $0.08 per share, or 10.4%, to $0.85 per share for the quarter ended March 31, 2026 from $0.77 per share for the quarter ended March 31, 2025
• Book value per share grew $0.48, or 2.3%, to $21.75 at March 31, 2026, from $21.27 at December 31, 2025

MIDDLETOWN, N.Y., April 28, 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 $11.3 million, or $0.85 per basic and diluted share, for the three months ended March 31, 2026. This compares with net income of $8.7 million, or $0.77 per basic and diluted share, for the three months ended March 31, 2025. The increase in earnings per share, basic and diluted, was due primarily to an increase in net interest income coupled with a reduction in provision for credit losses partially offset by an increase in noninterest expense during the current period.

Book value per share grew $0.48, or 2.3%, from $21.27 at December 31, 2025 to $21.75 at March 31, 2026. Tangible book value per share increased $0.49, or 2.4%, from $20.83 at December 31, 2025 to $21.32 at March 31, 2026 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were due to earnings growth during the three months ended March 31, 2026 offset by an increase in unrealized losses on the available for sale securities (“AFS”) portfolio resulting from interest rate fluctuation during the period.

“I am pleased to announce record first quarter financial results for the Bank led by growth of our low-cost deposit base and continued strength in our net interest margin,” said Orange County Bancorp President and CEO Michael Gilfeather and added “this expansion continued despite today’s challenging macroeconomic and geopolitical environments.”

“For the quarter ended March 31, 2026, the Bank earned $11.3 million, a $2.6 million, or 29.6% increase, over the same quarter last year. Total loans increased a modest $1.7 million for the quarter, keeping our total loan portfolio relatively flat at $2 billion versus year-end 2025. The average yield on the loan portfolio was 6.18%, up 13 basis points, or 2.15% from the same period last year, and down 6 basis points, or less than 1% versus the prior quarter.

Total deposit growth for the quarter continued a favorable trend, increasing $39.4 million, or 1.7%, to $2.4 billion at March 31, 2026 from $2.3 billion at December 31, 2025. The bulk of this growth reflected core deposits and was sourced within the Bank, enabling us to continue to reduce the use of higher cost, broker-sourced deposits. As discussed previously, we have made organically sourced deposits a key focus of the Bank, and this initiative continues to meet with success. Our average cost of deposits for the quarter was 1.03% down 26 basis points, or 20.2% from Q1 2025 and down 8 basis points or 7.2% versus Q4 2025, and remains a key competitive strength of the Bank.

Given higher lending rates and lower deposit costs, net interest margin continued to improve during the quarter, increasing 45 basis points to 4.40% for the three months ended March 31, 2026, from 3.95% for the three months ended March 31, 2025. Net interest margin was also helped by loan repayments near quarter end. We are always actively managing our loan portfolio and deposits with the goal of optimizing financial performance and delivering market leading results.

Breaking with otherwise strong metrics, our Wealth Management division experienced a pullback from its recent growth path during the quarter. For the three months ending March 31, 2026, Wealth Management earned $3.3 million, down $171 thousand, or 5.0% versus the same quarter last year and down $465 thousand, or 12.5% versus the prior quarter. During the quarter, earnings for Wealth Management were impacted by reduction in assets under management (AUM), partially resulting from volatility within the equity markets, the interest rate environment, and overall economy combined with last year’s divisional restructuring. We believe synergies between the Bank and Wealth Management division will position us to not only replace lost AUM but accelerate their growth further. We remain excited by the prospects for this division and view it as a key component of our business strategy and client value proposition.

The strength of our business model once again enabled us to navigate recent macroeconomic challenges successfully. I am proud of the results and remain optimistic about our opportunities. I also remain confident in our team’s ability to respond quickly to changing circumstances from a foundation of experience to effectively manage risk, serve our clients, and pursue new opportunities in our operating markets. This is the true power of a well run regional bank. As always, I thank our committed employees, customers, and shareholders for their continued confidence and support.”

First Quarter 2026 Financial Review

Net Income

Net income for the first quarter of 2026 was $11.3 million, an increase of $2.6 million, or 29.6%, from net income of $8.7 million for the first quarter of 2025. The growth in net income represents a combination of increased net interest income as well as a reduced provision for credit losses partially offset by increased noninterest expense during the quarter. The improvement in the provision for credit losses represents the effect of slower loan growth resulting from late first quarter loan repayments combined with lower reserve requirements related to the composition and performance of the loan portfolio and the associated impact of modeling projected losses under CECL.

Net Interest Income

For the three months ended March 31, 2026, net interest income rose $4.3 million, or 18.1%, to $27.9 million as compared to $23.6 million during the same period last year reflecting an increase in total interest income of $2.5 million as a result of growth in interest and fees associated with loans and a decrease in total interest expense of $1.8 million mainly due to lower interest costs resulting from reduced borrowing costs during the current period.

Total interest income rose $2.5 million, or 8.0%, to $34.4 million for the three months ended March 31, 2026, compared to $31.9 million for the three months ended March 31, 2025. The increase reflected 9.1% growth in interest and fees associated with loans coupled with an increase of interest income associated with fed funds and balances held at correspondent banks offset by a net decrease in interest income associated with investment securities.

Total interest expense decreased $1.8 million during the first quarter of 2026, to $6.5 million, as compared to $8.3 million in the first quarter of 2025. Interest expense from FHLB advances and borrowings during the current quarter totaled $98 thousand as compared to $931 thousand during the first quarter of 2025. The decrease primarily represented the effect of lower average balances and average costs associated with FHLB borrowings. Interest expense associated with savings and NOW accounts totaled $5.3 million during the first quarter of 2026 as compared to $4.9 million during the first quarter of 2025. Interest expense related to subordinated notes increased and totaled $430 thousand during the first quarter of 2026 as compared to $230 thousand during the first quarter of 2025.

Provision for Credit Losses

Provision for credit losses reflected a net recovery of $436 thousand for the three months ended March 31, 2026 as compared to an expense of $202 thousand for the three months ended March 31, 2025. The 2026 recovery was due primarily to slower loan growth during the first quarter of 2026 combined with the effect of customary model calibration for projected lifetime losses for the portfolio and lower reserves associated with the composition of loans closed during the first quarter of 2026. The allowance for credit losses to total loans was 1.43% as of March 31, 2026 versus 1.45% as of December 31, 2025. No additional reserves for investment securities were recorded during either of the first quarters of 2026 or 2025.

Non-Interest Income

Non-interest income decreased $179 thousand, or 4.1%, to $4.2 million for the three months ended March 31, 2026 as compared to $4.4 million for the three months ended March 31, 2025. This reduction was related primarily to a decrease in investment advisory income combined with a reduction of earnings on bank-owned life insurance due to a receipt of BOLI proceeds in the first quarter of 2025. The Company’s other fee income categories, including trust income and service charges on deposit accounts, experienced growth during the quarter.

Non-Interest Expense

Non-interest expense was $17.9 million for the first quarter of 2026, reflecting an increase of $1.4 million, or 8.7%, as compared to $16.5 million for the same period in 2025. The increase in non-interest expense for the current three-month period continues to reflect the Company’s investment in growth. This investment consists primarily of increases in compensation, occupancy, and professional fees as well as significant expense related to information technology. Our efficiency ratio, which is a non-GAAP measurement, improved to 55.9% for the three months ended March 31, 2026, from 58.9% for the same period in 2025.

Income Tax Expense

Provision for income taxes for the three months ended March 31, 2026 was $3.3 million, representing an increase of $722 thousand, or 27.9%, as compared to $2.6 million for the three months ended March 31, 2025. The increase in the provision for income tax was directly related to an increase in income before income taxes associated with the Company’s earnings as well as the effect of certain tax adjustments for the quarter. Our effective tax rate for the three-month period ended March 31, 2026 was 22.7%, as compared to 22.9% for the same period in 2025.

Financial Condition

Total consolidated assets increased by $46.2 million, or 1.7%, and remained relatively consistent at $2.7 billion at March 31, 2026 and December 31, 2025. The increase reflected increases in cash and loans during the first quarter of 2026.

Total cash and due from banks increased from $204.2 million at December 31, 2025, to $257.5 million at March 31, 2026, an increase of approximately $53.3 million, or 26.1%. This increase resulted mainly from higher levels of deposit balances and payoffs of loans which elevated cash levels at quarter end.

Total investment securities decreased $11.9 million, or 2.8%, from $425.3 million at December 31, 2025 to $413.4 million at March 31, 2026. The decrease continues to be driven primarily by investment maturities during the first three months of 2026.

Total loans increased $1.7 million, or 0.1%, and remained relatively level near $2.0 billion at March 31, 2026 and December 31, 2025. The slight increase included growth within the CRE construction category, home equity segment, and consumer sector offset by a decrease in commercial and industrial loans. Commercial real estate loans and residential real estate loans remained level between March 31, 2026 and December 31, 2025.

Total deposits increased $39.4 million, to $2.4 billion at March 31, 2026 from $2.3 billion at December 31, 2025. This increase was due primarily to $53.4 million of growth in interest bearing demand deposits and $1.7 million of growth in noninterest-bearing demand accounts. Money market accounts and savings accounts combined for approximately $1.1 million at March 31, 2026 as compared to $1.0 million at December 31, 2025, reflecting an increase of $77.3 million, or 7.7%. Certificates of deposit represented a $93.1 million decrease as the increased deposit levels of transaction accounts provided for run-off of maturing brokered deposits during the period. Deposit composition at March 31, 2026 included 51.1% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 49% at March 31, 2026 and 46% at December 31, 2025.

FHLBNY long-term borrowings remained at $10.0 million at March 31, 2026 and December 31, 2025. The stability and low level in borrowings represents the effect of increased deposits which outpaced loan growth during the quarter and allowed for low borrowing levels while maintaining higher levels of cash at March 31, 2026.

Stockholders’ equity increased $7.3 million, or 2.6%, to $291.7 million at March 31, 2026 from $284.4 million at December 31, 2025. The increase was due to the effect of $11.3 million in net income offset by dividends of $2.4 million and an increase in unrealized losses of approximately $2.8 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first quarter of 2026.

At March 31, 2026, 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 12.80%, both common equity and Tier 1 capital-to-risk-weighted-assets were 17.66%, and total-capital-to-risk-weighted-assets was 18.91%.

Wealth Management

At March 31, 2026, our Wealth Management Division, which includes trust and investment advisory, held $1.6 billion in assets under management or advisory, as compared to $1.9 billion at December 31, 2025, a 13.0% decrease. Trust and investment advisory income for the three months ended March 31, 2026 was $3.3 million, representing a decrease of 5.0%, or $171 thousand, as compared to $3.4 million for the three months ended March 31, 2025.

The breakdown of trust and investment advisory assets as of March 31, 2026 and December 31, 2025, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2026						At December 31, 2025
	Amount			Percent			Amount			Percent
Investment Assets Under Management & Advisory	$	961,581		58.52	%		$	1,184,317		62.73	%
Trust Asset Under Administration & Management		681,725		41.48	%			703,544		37.27	%
Total	$	1,643,306		100.00	%		$	1,887,861		100.00	%

Loan Quality

At March 31, 2026, the Bank had total non-performing loans of $26.1 million, or 1.34% of total loans. Total non-accrual loans represented $26.1 million of loans as of March 31, 2026, compared to $11.1 million at December 31, 2025. The increase in non-accrual loans was related primarily to a commercial real estate participation loan that experienced payment disruption during the first quarter of 2026 due to bankruptcy at the parent company level and remains non-performing and in non-accrual status at quarter-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 March 31, 2026, the Bank’s cash and due from banks totaled $257.5 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 March 31, 2026, the Bank’s investment in securities available for sale was $413.4 million, of which $127.4 million was not pledged as collateral or specifically designated to any borrowings. Additionally, as of March 31, 2026, the Bank’s overnight advance line capacity at the FHLBNY was $660.7 million, of which $87.4 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of March 31, 2026, the Bank’s unused borrowing capacity at the FHLBNY was $563.3 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 total amount of loans pledged to the Federal Reserve, between the Discount Window and the Borrower-In-Custody (“BIC”) program, was approximately $231.8 million at March 31, 2026. At March 31, 2026, 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 March 31, 2026, the Bank had brokered deposit arrangements with various terms under 30 days totaling approximately $30.0 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.
	March 31, 2026				December 31, 2025
	(Dollars in thousands except for share data)
Tangible Common Equity:
Total stockholders’ equity	$	291,664			$	284,364
Adjustments:
Goodwill		(5,359	)			(5,359	)
Other intangible assets		(464	)			(535	)
Tangible common equity	$	285,841			$	278,470
Common shares outstanding		13,407,690				13,368,447
Book value per common share	$	21.75			$	21.27
Tangible book value per common share	$	21.32			$	20.83
Tangible Assets
Total assets	$	2,705,620			$	2,659,377
Adjustments:
Goodwill		(5,359	)			(5,359	)
Other intangible assets		(464	)			(535	)
Tangible assets	$	2,699,797			$	2,653,483
Tangible common equity to tangible assets		10.59	%			10.49	%

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)
	March 31, 2026				December 31, 2025
ASSETS
Cash and due from banks	$	257,538			$	204,232
Investment securities - available-for-sale		407,510				419,406
(Amortized cost $463,946 at March 31, 2026 and $472,097 at December 31, 2025)
Restricted investment in bank stocks		5,917				5,917
Loans		1,951,963				1,950,284
Allowance for credit losses		(27,844	)			(28,335	)
Loans, net		1,924,119				1,921,949
Premises and equipment, net		15,636				15,482
Accrued interest receivable		10,994				10,383
Bank owned life insurance		32,770				32,578
Goodwill		5,359				5,359
Intangible assets		464				535
Other assets		45,313				43,536
TOTAL ASSETS	$	2,705,620			$	2,659,377
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing	$	727,337			$	725,656
Interest bearing	$	1,622,386				1,584,717
Total deposits		2,349,723				2,310,373
FHLB advances, short term		-				-
FHLB advances, long term		10,000				10,000
Subordinated notes, net of issuance costs		24,579				24,555
Accrued expenses and other liabilities		29,654				30,085
TOTAL LIABILITIES		2,413,956				2,375,013
STOCKHOLDERS' EQUITY
Common stock, $0.25 par value; 30,000,000 shares authorized;
13,415,707 and 13,376,464 issued; 13,407,690 and 13,368,447 outstanding,
at March 31, 2026 and December 31, 2025, respectively		3,354				3,344
Surplus		165,823				164,592
Retained Earnings		173,311				164,434
Accumulated other comprehensive income (loss), net of taxes		(50,625	)			(47,807	)
Treasury stock, at cost; 8,017 shares at March 31, 2026 and December 31,
2025, respectively		(199	)			(199	)
TOTAL STOCKHOLDERS' EQUITY		291,664				284,364
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,705,620			$	2,659,377

ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
	For Three Months Ended March 31,
		2026				2025
INTEREST INCOME
Interest and fees on loans	$	29,790			$	27,314
Interest on investment securities:
Taxable		2,483				2,664
Tax exempt		502				576
Interest on Federal funds sold and other		1,644				1,353
TOTAL INTEREST INCOME		34,419				31,907
INTEREST EXPENSE
Savings and NOW accounts		5,280				4,894
Time deposits		710				2,224
FHLB advances and borrowings		98				931
Subordinated notes		430				230
TOTAL INTEREST EXPENSE		6,518				8,279
NET INTEREST INCOME		27,901				23,628
Provision (recovery) for credit losses - investments		-				-
Provision for credit losses - loans		(436	)			202
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES		28,337				23,426
NONINTEREST INCOME
Service charges on deposit accounts		355				290
Trust income		1,727				1,674
Investment advisory income		1,542				1,766
Earnings on bank owned life insurance		192				259
Other		361				367
TOTAL NONINTEREST INCOME		4,177				4,356
NONINTEREST EXPENSE
Salaries		7,409				6,905
Employee benefits		3,102				2,450
Occupancy expense		1,336				1,277
Professional fees		1,465				1,347
Directors' fees and expenses		622				306
Computer software expense		1,879				1,982
FDIC assessment		330				330
Advertising expenses		425				389
Advisor expenses related to trust income		24				22
Telephone expenses		264				207
Intangible amortization		71				71
Other		997				1,208
TOTAL NONINTEREST EXPENSE		17,924				16,494
		14,590				11,288
Provision for income taxes		3,306				2,584
	$	11,284			$	8,704
Basic and diluted earnings per share	$	0.85			$	0.77
Weighted average shares outstanding		13,351,885				11,331,884

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
	Three Months Ended March 31,
		2026										2025
	Average Balance				Interest			Average Rate			Average Balance				Interest			Average Rate
Assets:
Loans Receivable	$	1,955,448			$	29,790		6.18	%		$	1,830,080			$	27,314		6.05	%
Investment securities		417,179				2,891		2.81	%			441,776				3,123		2.87	%
Due from banks		190,504				1,644		3.50	%			146,657				1,353		3.74	%
Other		5,917				94		6.44	%			7,979				117		5.95	%
Total interest earning assets		2,569,048				34,419		5.43	%			2,426,492				31,907		5.33	%
Non-interest earning assets		111,195										101,960
Total assets	$	2,680,243									$	2,528,452
Liabilities and equity:
Interest-bearing demand accounts	$	475,293			$	777		0.66	%		$	357,057			$	403		0.46	%
Money market accounts		495,616				2,009		1.64	%			685,827				3,634		2.15	%
Savings accounts		535,617				2,494		1.89	%			269,019				857		1.29	%
Certificates of deposit		88,175				710		3.27	%			222,992				2,224		4.04	%
Total interest-bearing deposits		1,594,701				5,990		1.52	%			1,534,895				7,118		1.88	%
FHLB Advances and other borrowings		10,000				98		3.97	%			85,011				931		4.44	%
Subordinated notes		24,564				430		7.10	%			19,597				230		4.76	%
Total interest bearing liabilities		1,629,265				6,518		1.62	%			1,639,503				8,279		2.05	%
Non-interest bearing demand accounts		727,902										667,564
Other non-interest bearing liabilities		32,815										29,907
Total liabilities		2,389,982										2,336,974
Total shareholders' equity		290,261										191,478
Total liabilities and shareholders' equity	$	2,680,243									$	2,528,452
Net interest income					$	27,901									$	23,628
Interest rate spread1								3.81	%									3.28	%
Net interest margin2								4.40	%									3.95	%
Average interest earning assets to interest-bearing liabilities		157.7	%									148.0	%
Notes:
1The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
2Net 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 March 31,
	2026			2025
Performance Ratios:
Return on average assets (1)	1.68	%		1.38	%
Return on average equity (1)	15.55	%		18.18	%
Interest rate spread (2)	3.81	%		3.28	%
Net interest margin (3)	4.40	%		3.95	%
Dividend payout ratio (4)	21.30	%		16.92	%
Non-interest income to average total assets	0.16	%		0.17	%
Non-interest expenses to average total assets	0.67	%		0.65	%
Average interest-earning assets to average interest-bearing liabilities	157.68	%		148.00	%
	At			At
	March 31, 2026			March 31, 2025
Asset Quality Ratios:
Non-performing assets to total assets	0.96	%		0.24	%
Non-performing loans to total loans	1.34	%		0.33	%
Allowance for credit losses to non-performing loans	106.74	%		425.03	%
Allowance for credit losses to total loans	1.43	%		1.42	%
Capital Ratios (5):
Total capital (to risk-weighted assets)	18.91	%		15.42	%
Tier 1 capital (to risk-weighted assets)	17.66	%		14.16	%
Common equity tier 1 capital (to risk-weighted assets)	17.66	%		14.16	%
Tier 1 capital (to average assets)	12.80	%		10.41	%
Notes:
(1) Annualized for the three month periods ended March 31, 2026 and 2025, 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 March 31,
		2026				2025
Interest income	$	34,419			$	31,907
Interest expense		6,518				8,279
Net interest income		27,901				23,628
Provision for credit losses		(436	)			202
Net interest income after provision for credit losses		28,337				23,426
Noninterest income		4,177				4,356
Noninterest expenses		17,924				16,494
Income before income taxes		14,590				11,288
Provision for income taxes		3,306				2,584
Net income	$	11,284			$	8,704
Basic and diluted earnings per share	$	0.85			$	0.77
Weighted average common shares outstanding		13,351,885				11,331,884
	At				At
	March 31, 2026				December 31, 2025
Book value per share	$	21.75			$	21.27
Net tangible book value per share (1)	$	21.32			$	20.83
Outstanding common shares		13,407,690				13,368,447
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 $464, and $535 in other intangible assets for March 31, 2026 and December 31, 2025, respectively.

ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2026						At December 31, 2025
	Amount			Percent			Amount			Percent
Commercial and industrial	$	230,972		11.83	%		$	249,633		12.80	%
Commercial real estate		1,480,805		75.86	%			1,480,062		75.89	%
Commercial real estate construction		106,868		5.48	%			99,262		5.09	%
Residential real estate		65,846		3.37	%			65,290		3.35	%
Home equity		26,894		1.38	%			22,618		1.16	%
Consumer		40,578		2.08	%			33,419		1.71	%
Total loans		1,951,963		100.00	%			1,950,284		100.00	%
Allowance for loan losses		27,844						28,335
Total loans, net	$	1,924,119					$	1,921,949

ORANGE COUNTY BANCORP, INC.
DEPOSITS BY ACCOUNT TYPE
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2026									At December 31, 2025
	Amount			Percent			Average Rate			Amount			Percent			Average Rate
Noninterest-bearing demand accounts	$	727,337		30.95	%		0.00	%		$	725,656		31.41	%		0.00	%
Interest bearing demand accounts		473,030		20.13	%		0.52	%			419,604		18.16	%		0.72	%
Money market accounts		276,997		11.79	%		1.34	%			646,688		27.99	%		1.86	%
Savings accounts		806,446		34.32	%		1.88	%			359,415		15.56	%		1.45	%
Certificates of Deposit		65,913		2.81	%		2.74	%			159,010		6.88	%		3.46	%
Total	$	2,349,723		100.00	%		0.99	%		$	2,310,373		100.00	%		1.12	%

ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
(Dollar Amounts in thousands)
	March 31, 2026				December 31, 2025
Non-accrual loans:
Commercial and industrial	$	2,250			$	1,577
Commercial real estate		22,998				8,690
Commercial real estate construction		-				-
Residential real estate		-				1
Home equity		833				844
Consumer		-				-
Total non-accrual loans		26,081				11,112
Accruing loans 90 days or more past due:
Commercial and industrial		4				18
Commercial real estate		-				-
Commercial real estate construction		-				-
Residential real estate		-				-
Home equity		-				-
Consumer		-				-
Total loans 90 days or more past due		4				18
Total non-performing loans		26,085				11,130
Other real estate owned		-				-
Other non-performing assets		-				-
Total non-performing assets	$	26,085			$	11,130
Ratios:
Total non-performing loans to total loans		1.34	%			0.57	%
Total non-performing loans to total assets		0.96	%			0.42	%
Total non-performing assets to total assets		0.96	%			0.42	%
Net-chargeoffs to total loans, YTD		0.00	%			0.29	%

FAQ

What were Orange County Bancorp (OBT) Q1 2026 net income and EPS?

Net income for Q1 2026 was $11.3 million and EPS was $0.85. According to the company, this represented a 29.6% increase in net income versus Q1 2025, driven by higher net interest income and lower credit provision.

How did Orange County Bancorp (OBT) net interest margin change in Q1 2026?

Net interest margin rose to 4.40% in Q1 2026, up 45 basis points year-over-year. According to the company, the improvement reflected higher loan yields and lower deposit funding costs.

What happened to Orange County Bancorp (OBT) deposits and loans in Q1 2026?

Total deposits increased by $39.4 million to $2.4 billion at March 31, 2026. According to the company, total loans remained relatively flat at approximately $2.0 billion, with modest growth in select segments.

Why did Orange County Bancorp (OBT) Wealth Management assets drop in Q1 2026?

Assets under management/advisory fell to $1.6 billion, a 13.0% decrease versus year-end. According to the company, the decline reflected market volatility, interest-rate effects, and prior divisional restructuring that reduced AUM.

What credit issues did Orange County Bancorp (OBT) report for Q1 2026?

Non-performing loans increased to $26.1 million (1.34% of total loans) at March 31, 2026. According to the company, the rise was driven primarily by a commercial real estate participation loan with payment disruption related to bankruptcy at a borrower parent company.