Orange County Bancorp, Inc. Announces Record Second Quarter Earnings
Rhea-AI Summary
Orange County Bancorp (Nasdaq: OBT) reported record second quarter 2026 earnings, with net income rising 30.6% to $13.7 million, or $1.02 per share, from $10.5 million, or $0.87, a year earlier. Six‑month net income increased 30.1% to $24.9 million.
According to the company, results benefited from higher net interest income, a $5.3 million deferred tax valuation allowance reversal, and lower provision for credit losses, partly offset by a $4.8 million valuation loss on loans held‑for‑sale and weaker non‑interest income. Net interest margin expanded 38 basis points to 4.44%, total deposits grew 5.2% to $2.4 billion, and total loans reached about $2.0 billion. Book value per share rose 7.5% since year‑end 2025 to $22.87, while non‑interest expense and the efficiency ratio also increased.
Positive
- Net income Q2 2026 up 30.6% to $13.7 million
- EPS Q2 2026 up 17.2% to $1.02 per share
- Net interest margin up 38 bps to 4.44% in Q2 2026
- Total deposits up $120.8 million, or 5.2%, to $2.4 billion
- Net interest income up $3.3 million, or 13.1%, to $28.4 million
- Income tax benefit from $5.3 million deferred tax valuation allowance reversal
Negative
- Non-interest income fell $7.9 million to a $0.6 million loss in Q2
- $4.8 million valuation loss recorded on loans held-for-sale
- Efficiency ratio worsened to 62.1% from 51.6% in Q2 2025
- Non-interest expense up $1.9 million year-to-date to $35.2 million
- Wealth Management earnings down $178 thousand, or 5.2%, year-over-year in Q2
- Allowance for credit losses ratio declined to 1.38% from 1.48% year-over-year
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 22 | Cash dividend | Positive | +1.2% | Declared a quarterly cash dividend payable to shareholders |
| May 18 | Bank recognition | Positive | +2.1% | Named to KBW Bank Honor Roll for high-performing banks |
| Apr 28 | First-quarter earnings | Positive | -6.2% | Reported record first-quarter earnings with margin and deposit growth |
| Feb 20 | Cash dividend | Positive | -3.2% | Declared a cash dividend with specified payment and record dates |
| Feb 11 | Leadership appointments | Neutral | +0.1% | Appointed two portfolio managers to Orange Investment Advisors |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent positive announcements produced mixed outcomes, including a divergence after first-quarter earnings despite the record result.
Key Terms
net interest margin financial
deferred tax valuation allowance financial
loans held-for-sale financial
efficiency ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Net Income increased
$3.2 million , or30.6% , to$13.7 million for the quarter ended June 30, 2026, from$10.5 million for the quarter ended June 30, 2025, marking record second quarter earnings - Net Interest Margin increased 38 basis points, or
9.4% , to4.44% for the three months ended June 30, 2026, from4.06% for the three months ended June 30, 2025 - Total Deposits increased
$120.8 million , or5.2% , to$2.4 billion at June 30, 2026, from$2.3 billion at June 30, 2025 - Total Loans, including loans held-for-sale, were approximately
$2.0 billion at June 30, 2026, from a comparable level at December 31, 2025 and$1.9 billion at June 30, 2025 - Earnings per share increased
$0.15 per share, or17.2% , to$1.02 per share for the quarter ended June 30, 2026 from$0.87 per share for the quarter ended June 30, 2025 - Book value per share grew
$1.60 , or7.5% , to$22.87 at June 30, 2026, from$21.27 at December 31, 2025
MIDDLETOWN, N.Y., July 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
Book value per share grew
“I am pleased to announce record second quarter financial results for the Bank led by continued growth of our low-cost deposit base and strength in net interest margin,” said Orange County Bancorp President and CEO Michael Gilfeather. “Our success reflects the unrelenting focus of our organization and ability to navigate challenging financial conditions as we continue to execute our strategic plan.”
“For the quarter ended June 30, 2026, the Company earned
Total deposit growth continued its favorable trend and remains a central element of our success - increasing
Not surprisingly, reduced deposit costs and increased loan yields resulted in a 38-basis point improvement in net interest margin from
Our Wealth Management division also appears to be stabilizing following a pullback related to key staff changes earlier this year. For the three months ended June 30, 2026, Wealth Management earned
* See Non-GAAP reconciliation table on p.5.
The resiliency of our strategic plan, commitment and professionalism of our employees gives us the tools to manage market challenges, as our second quarter results show. We are proud of our performance and remain optimistic about opportunities ahead. We also remain confident in our ability to respond to evolving market conditions and draw on our experience and expertise to continue to manage risks, support our clients, and pursue compelling business opportunities. I again thank our employees, customers, and shareholders for their continued confidence and support.”
Second Quarter and Year to Date 2026 Financial Review
Net Income
Net income for the second quarter of 2026 was
Net Interest Income
For the three months ended June 30, 2026, net interest income rose
Total interest income rose
Total interest expense decreased
Provision for Credit Losses
Provision for credit losses reflected a net recovery of
Non-Interest Income
Non-interest income decreased
Non-Interest Expense
Non-interest expense was
Income Tax Expense
Provision for income taxes for the three months ended June 30, 2026 reflected a net credit of
Financial Condition
Total consolidated assets increased by
Total cash and due from banks increased from
Total investment securities decreased
Total loans, including loans held-for-sale, increased
During the six months ended June 30, 2026, the Company transferred loans with an aggregate principal balance of
The six months ended June 30, 2026, also included
Total deposits increased
FHLBNY long-term borrowings remained at
Stockholders’ equity increased
At June 30, 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
Wealth Management
At June 30, 2026, our Wealth Management Division, which includes trust and investment advisory, held
The breakdown of trust and investment advisory assets as of June 30, 2026 and December 31, 2025, respectively, is as follows:
| At June 30, 2026 | At December 31, 2025 | |||||||||||
| Amount | Percent | Amount | Percent | |||||||||
| (In thousands) | ||||||||||||
| Investment Assets Under Management & Advisory | $ | 941,351 | 56.26 | % | $ | 1,184,317 | 62.73 | % | ||||
| Trust Asset Under Administration & Management | 731,866 | 43.74 | % | 703,544 | 37.27 | % | ||||||
| Total | $ | 1,673,217 | 100.00 | % | $ | 1,887,861 | 100.00 | % | ||||
Loan Quality
At June 30, 2026, the Bank had total non-performing loans of
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
The Bank also considers brokered deposits an element of its overall deposit strategy. As of June 30, 2026, the Bank did not have any brokered deposit arrangements with various terms under 30 days.
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 GAAP basis) to tangible assets and calculates our tangible book value per share.
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Dollars in thousands except per share data) | ||||||||
| Tangible Common Equity: | ||||||||
| Total stockholders’ equity | $ | 306,628 | $ | 284,364 | ||||
| Adjustments: | ||||||||
| Goodwill | (5,359 | ) | (5,359 | ) | ||||
| Other intangible assets | (393 | ) | (535 | ) | ||||
| Tangible common equity | $ | 300,876 | $ | 278,470 | ||||
| Common shares outstanding | 13,407,904 | 13,368,447 | ||||||
| Book value per common share | $ | 22.87 | $ | 21.27 | ||||
| Tangible book value per common share | $ | 22.44 | $ | 20.83 | ||||
| Tangible Assets | ||||||||
| Total assets | $ | 2,800,371 | $ | 2,659,377 | ||||
| Adjustments: | ||||||||
| Goodwill | (5,359 | ) | (5,359 | ) | ||||
| Other intangible assets | (393 | ) | (535 | ) | ||||
| Tangible assets | $ | 2,794,619 | $ | 2,653,483 | ||||
| Tangible common equity to tangible assets | 10.77 | % | 10.49 | % | ||||
The following table presents reconciliation of adjusted quarterly net income.
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Pretax income | $ | 11,560 | $ | 13,589 | ||||
| Adjustments: | ||||||||
| Valuation loss on loans held-for-sale | 4,761 | — | ||||||
| Net loss on sale of securities | — | 727 | ||||||
| Proceeds from bank owned life insurance benefit | — | (2,399 | ) | |||||
| Gain on sale of assets | — | (1,236 | ) | |||||
| Adjusted pre-tax income | 16,321 | 10,681 | ||||||
| Income taxes(1) | (3,754 | ) | (2,457 | ) | ||||
| Adjusted net income | $ | 12,567 | $ | 8,224 | ||||
Notes:
(1) Effective tax rate of
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
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) | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 334,925 | $ | 204,232 | ||||
| Investment securities – available-for-sale (amortized cost | 395,906 | 419,406 | ||||||
| Restricted investment in bank stocks | 6,024 | 5,917 | ||||||
| Loans held-for-sale, net | 63,594 | — | ||||||
| Loans | 1,910,262 | 1,950,284 | ||||||
| Allowance for credit losses | (26,339 | ) | (28,335 | ) | ||||
| Loans, net | 1,883,923 | 1,921,949 | ||||||
| Premises and equipment, net | 15,459 | 15,482 | ||||||
| Accrued interest receivable | 10,788 | 10,383 | ||||||
| Bank owned life insurance | 32,965 | 32,578 | ||||||
| Goodwill | 5,359 | 5,359 | ||||||
| Intangible assets | 393 | 535 | ||||||
| Other assets | 51,035 | 43,536 | ||||||
| TOTAL ASSETS | $ | 2,800,371 | $ | 2,659,377 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Noninterest bearing | $ | 793,908 | $ | 725,656 | ||||
| Interest bearing | 1,637,283 | 1,584,717 | ||||||
| Total deposits | 2,431,191 | 2,310,373 | ||||||
| FHLB advances, long term | 10,000 | 10,000 | ||||||
| Subordinated notes, net of issuance costs | 24,603 | 24,555 | ||||||
| Accrued expenses and other liabilities | 27,949 | 30,085 | ||||||
| TOTAL LIABILITIES | 2,493,743 | 2,375,013 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, | 3,354 | 3,344 | ||||||
| Surplus | 168,162 | 164,592 | ||||||
| Retained Earnings | 184,557 | 164,434 | ||||||
| Accumulated other comprehensive income (loss), net of taxes | (49,246 | ) | (47,807 | ) | ||||
| Treasury stock, at cost; 8,017 shares at June 30, 2026 and December 31, 2025, respectively | (199 | ) | (199 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 306,628 | 284,364 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,800,371 | $ | 2,659,377 | ||||
| ORANGE COUNTY BANCORP, INC. CONDENSED CONSOLIDATEDSTATEMENTS OF INCOME (UNAUDITED) (Dollar Amounts in thousands except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Interest and fees on loans | $ | 29,625 | $ | 28,103 | $ | 59,415 | $ | 55,417 | ||||||||
| Interest on investment securities: | ||||||||||||||||
| Taxable | 2,447 | 2,731 | 4,930 | 5,395 | ||||||||||||
| Tax exempt | 499 | 561 | 1,001 | 1,137 | ||||||||||||
| Interest on Federal funds sold and other | 1,979 | 1,829 | 3,623 | 3,182 | ||||||||||||
| TOTAL INTEREST INCOME | 34,550 | 33,224 | 68,969 | 65,131 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Savings and NOW accounts | 5,308 | 5,256 | 10,588 | 10,150 | ||||||||||||
| Time deposits | 256 | 2,222 | 966 | 4,446 | ||||||||||||
| FHLB advances | 134 | 375 | 232 | 1,306 | ||||||||||||
| Subordinated notes | 430 | 231 | 860 | 461 | ||||||||||||
| TOTAL INTEREST EXPENSE | 6,128 | 8,084 | 12,646 | 16,363 | ||||||||||||
| NET INTEREST INCOME | 28,422 | 25,140 | 56,323 | 48,768 | ||||||||||||
| Provision (credit) for credit losses - loans | (1,014 | ) | 2,113 | (1,450 | ) | 2,315 | ||||||||||
| NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES | 29,436 | 23,027 | 57,773 | 46,453 | ||||||||||||
| NONINTEREST INCOME (LOSS) | ||||||||||||||||
| Service charges on deposit accounts | 329 | 334 | 684 | 624 | ||||||||||||
| Trust income | 1,666 | 1,573 | 3,393 | 3,247 | ||||||||||||
| Investment advisory income | 1,552 | 1,823 | 3,094 | 3,589 | ||||||||||||
| Investment securities gains (losses), net | — | (727 | ) | — | (727 | ) | ||||||||||
| Earnings on bank owned life insurance | 195 | 234 | 387 | 493 | ||||||||||||
| Proceeds from bank owned life insurance benefit | — | 2,399 | — | 2,399 | ||||||||||||
| Gain on sale of assets | — | 1,236 | — | 1,236 | ||||||||||||
| Valuation loss on loans held-for-sale | (4,761 | ) | — | (4,761 | ) | — | ||||||||||
| Other | 412 | 444 | 773 | 811 | ||||||||||||
| TOTAL NONINTEREST INCOME (LOSS) | (607 | ) | 7,316 | 3,570 | 11,672 | |||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||
| Salaries | 7,512 | 6,813 | 14,921 | 13,718 | ||||||||||||
| Employee benefits | 3,005 | 2,338 | 6,107 | 4,788 | ||||||||||||
| Occupancy expense | 1,251 | 1,299 | 2,587 | 2,576 | ||||||||||||
| Professional fees | 1,861 | 1,666 | 3,326 | 3,013 | ||||||||||||
| Directors’ fees and expenses | 535 | 319 | 1,157 | 625 | ||||||||||||
| Computer software expense | 1,959 | 2,117 | 3,838 | 4,099 | ||||||||||||
| FDIC assessment | 160 | 330 | 490 | 660 | ||||||||||||
| Advertising expenses | 496 | 481 | 921 | 870 | ||||||||||||
| Advisor expenses related to trust income | 26 | 22 | 50 | 44 | ||||||||||||
| Telephone expenses | 274 | 203 | 538 | 410 | ||||||||||||
| Intangible amortization | 72 | 72 | 143 | 143 | ||||||||||||
| Other | 118 | 1,094 | 1,115 | 2,302 | ||||||||||||
| TOTAL NONINTEREST EXPENSE | 17,269 | 16,754 | 35,193 | 33,248 | ||||||||||||
| Income before income taxes | 11,560 | 13,589 | 26,150 | 24,877 | ||||||||||||
| Provision (credit) for income taxes | (2,099 | ) | 3,128 | 1,207 | 5,712 | |||||||||||
| NET INCOME | $ | 13,659 | $ | 10,461 | $ | 24,943 | $ | 19,165 | ||||||||
| Basic and diluted earnings per share | $ | 1.02 | $ | 0.87 | $ | 1.87 | $ | 1.64 | ||||||||
| Weighted average shares outstanding | 13,381,376 | 11,994,815 | 13,366,712 | 11,665,181 | ||||||||||||
| ORANGE COUNTY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (UNAUDITED) (Dollar Amounts in thousands) | ||||||||||||||||||
| For the Three Months Ended June 30, | ||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||
| Outstanding | Yield/ | Outstanding | Yield/ | |||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans(1) | $ | 1,969,467 | $ | 29,625 | 6.03 | % | $ | 1,879,758 | $ | 28,103 | 6.00 | % | ||||||
| Investment securities available for sale | 403,523 | 2,875 | 2.86 | % | 432,657 | 3,083 | 2.86 | % | ||||||||||
| Cash and due from banks and other | 191,027 | 1,979 | 4.16 | % | 167,987 | 1,829 | 4.37 | % | ||||||||||
| Restricted stock | 6,179 | 71 | 4.62 | % | 5,773 | 209 | 14.52 | % | ||||||||||
| Total interest-earning assets | 2,570,196 | 34,550 | 5.39 | % | 2,486,175 | 33,224 | 5.36 | % | ||||||||||
| Noninterest-earning assets | 119,178 | 104,019 | ||||||||||||||||
| Total assets | $ | 2,689,374 | $ | 2,590,194 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing demand deposits | $ | 442,309 | $ | 454 | 0.41 | % | $ | 397,476 | $ | 489 | 0.49 | % | ||||||
| Money market deposits | 402,356 | 1,415 | 1.41 | % | 702,607 | 3,721 | 2.12 | % | ||||||||||
| Savings deposits | 694,687 | 3,439 | 1.99 | % | 301,586 | 1,046 | 1.39 | % | ||||||||||
| Certificates of deposit | 44,518 | 256 | 2.31 | % | 221,363 | 2,222 | 4.03 | % | ||||||||||
| Total interest-bearing deposits | 1,583,870 | 5,564 | 1.41 | % | 1,623,032 | 7,478 | 1.85 | % | ||||||||||
| FHLB Advances and other borrowings | 13,606 | 134 | 3.95 | % | 34,341 | 375 | 4.38 | % | ||||||||||
| Subordinated notes | 24,587 | 430 | 7.01 | % | 19,615 | 231 | 4.72 | % | ||||||||||
| Total interest-bearing liabilities | 1,622,063 | 6,128 | 1.52 | % | 1,676,988 | 8,084 | 1.93 | % | ||||||||||
| Noninterest-bearing demand deposits | 740,345 | 670,150 | ||||||||||||||||
| Other noninterest-bearing liabilities | 29,423 | 27,436 | ||||||||||||||||
| Total liabilities | 2,391,831 | 2,374,574 | ||||||||||||||||
| Total stockholders’ equity | 297,543 | 215,620 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,689,374 | $ | 2,590,194 | ||||||||||||||
| Net interest income | $ | 28,422 | $ | 25,140 | ||||||||||||||
| Net interest rate spread(2) | 3.87 | % | 3.43 | % | ||||||||||||||
| Net interest margin(3) | 4.44 | % | 4.06 | % | ||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 158.5 | % | 148.3 | % | ||||||||||||||
Notes:
(1) Includes loans held-for-sale.
(2) The interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(3) 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) | ||||||||||||||||||
| For the Six Months Ended June 30, | ||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||
| Outstanding | Yield/ | Outstanding | Yield/ | |||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans(1) | $ | 1,962,496 | $ | 59,415 | 6.11 | % | $ | 1,855,056 | $ | 55,417 | 6.02 | % | ||||||
| Investment securities available for sale | 410,313 | 5,766 | 2.83 | % | 437,191 | 6,205 | 2.86 | % | ||||||||||
| Cash and due from banks and other | 190,767 | 3,623 | 3.83 | % | 157,381 | 3,182 | 4.08 | % | ||||||||||
| Restricted stock | 6,049 | 165 | 5.50 | % | 6,871 | 327 | 9.60 | % | ||||||||||
| Total interest-earning assets | 2,569,625 | 68,969 | 5.41 | % | 2,456,499 | 65,131 | 5.35 | % | ||||||||||
| Noninterest-earning assets | 115,208 | 102,995 | ||||||||||||||||
| Total assets | $ | 2,684,833 | $ | 2,559,494 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing demand deposits | $ | 458,710 | $ | 1,231 | 0.54 | % | $ | 377,378 | $ | 891 | 0.48 | % | ||||||
| Money market deposits | 448,729 | 3,424 | 1.54 | % | 694,263 | 7,356 | 2.14 | % | ||||||||||
| Savings deposits | 615,591 | 5,933 | 1.94 | % | 285,393 | 1,903 | 1.34 | % | ||||||||||
| Certificates of deposit | 66,226 | 966 | 2.94 | % | 222,173 | 4,446 | 4.04 | % | ||||||||||
| Total interest-bearing deposits | 1,589,256 | 11,554 | 1.47 | % | 1,579,207 | 14,596 | 1.86 | % | ||||||||||
| FHLB Advances and other borrowings | 11,813 | 232 | 3.96 | % | 59,536 | 1,306 | 4.42 | % | ||||||||||
| Subordinated notes | 24,576 | 860 | 7.06 | % | 19,606 | 461 | 4.74 | % | ||||||||||
| Total interest-bearing liabilities | 1,625,645 | 12,646 | 1.57 | % | 1,658,349 | 16,363 | 1.99 | % | ||||||||||
| Noninterest-bearing demand deposits | 734,158 | 668,864 | ||||||||||||||||
| Other noninterest-bearing liabilities | 31,108 | 28,665 | ||||||||||||||||
| Total liabilities | 2,390,911 | 2,355,878 | ||||||||||||||||
| Total stockholders’ equity | 293,922 | 203,616 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,684,833 | $ | 2,559,494 | ||||||||||||||
| Net interest income | $ | 56,323 | $ | 48,768 | ||||||||||||||
| Net interest rate spread(2) | 3.84 | % | 3.36 | % | ||||||||||||||
| Net interest margin(3) | 4.42 | % | 4.00 | % | ||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 158.1 | % | 148.1 | % | ||||||||||||||
Notes:
(1) Includes loans held-for-sale.
(2) The interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(3) 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 | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Performance Ratios: | ||||||||||||
| Return on average assets(1) | 2.03 | % | 1.62 | % | 1.86 | % | 1.50 | % | ||||
| Return on average equity(1) | 18.36 | % | 19.41 | % | 16.97 | % | 18.82 | % | ||||
| Interest rate spread(2) | 3.87 | % | 3.43 | % | 3.84 | % | 3.36 | % | ||||
| Net interest margin(3) | 4.44 | % | 4.06 | % | 4.42 | % | 4.00 | % | ||||
| Dividend payout ratio(4) | 17.63 | % | 14.91 | % | 19.29 | % | 15.83 | % | ||||
| Non-interest income to average total assets | (0.09 | )% | 1.13 | % | 0.27 | % | 0.91 | % | ||||
| Non-interest expenses to average total assets | 2.57 | % | 2.59 | % | 2.62 | % | 2.60 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 158.45 | % | 148.25 | % | 158.07 | % | 148.13 | % | ||||
| At June 30, | ||||||||||||
| 2026 | 2025 | |||||||||||
| Asset Quality Ratios: | ||||||||||||
| Non-performing assets to total assets | 0.79 | % | 0.45 | % | ||||||||
| Non-performing loans to total loans | 1.16 | % | 0.61 | % | ||||||||
| Allowance for credit losses to non-performing loans | 118.86 | % | 242.51 | % | ||||||||
| Allowance for credit losses to total loans | 1.38 | % | 1.48 | % | ||||||||
| Capital Ratios(5): | ||||||||||||
| Total capital (to risk-weighted assets) | 19.20 | % | 17.61 | % | ||||||||
| Tier 1 capital (to risk-weighted assets) | 17.95 | % | 16.36 | % | ||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 17.95 | % | 16.36 | % | ||||||||
| Tier 1 capital (to average assets) | 13.15 | % | 12.40 | % | ||||||||
Notes:
(1) Annualized for the three and six months ended June 30, 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 Bank only.
| ORANGE COUNTY BANCORP, INC. SELECTED OPERATING DATA (UNAUDITED) (Dollar amounts in thousands except per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Interest income | $ | 34,550 | $ | 33,224 | $ | 68,969 | $ | 65,131 | ||||||||
| Interest expense | 6,128 | 8,084 | 12,646 | 16,363 | ||||||||||||
| Net interest income | 28,422 | 25,140 | 56,323 | 48,768 | ||||||||||||
| Provision (credit) for credit losses | (1,014 | ) | 2,113 | (1,450 | ) | 2,315 | ||||||||||
| Net interest income after provision (credit) for credit losses | 29,436 | 23,027 | 57,773 | 46,453 | ||||||||||||
| Noninterest income | (607 | ) | 7,316 | 3,570 | 11,672 | |||||||||||
| Noninterest expenses | 17,269 | 16,754 | 35,193 | 33,248 | ||||||||||||
| Income before income taxes | 11,560 | 13,589 | 26,150 | 24,877 | ||||||||||||
| Provision (credit) for income taxes | (2,099 | ) | 3,128 | 1,207 | 5,712 | |||||||||||
| Net income | $ | 13,659 | $ | 10,461 | $ | 24,943 | $ | 19,165 | ||||||||
| Basic and diluted earnings per share | $ | 1.02 | $ | 0.87 | $ | 1.87 | $ | 1.64 | ||||||||
| Weighted average common shares outstanding | 13,381,376 | 11,994,815 | 13,366,712 | 11,665,181 | ||||||||||||
| At June 30, | At December 31, | |||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Book value per share | $ | 22.87 | $ | 21.27 | ||||||||||||
| Net tangible book value per share(1) | $ | 22.44 | $ | 20.83 | ||||||||||||
| Outstanding common shares | 13,407,904 | 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
| ORANGE COUNTY BANCORP, INC. SELECTED OPERATING DATA (UNAUDITED) (Dollar amounts in thousands) | ||||||||||||
| The following table presents loan composition for the periods indicated. | ||||||||||||
| At June 30, 2026 | At December 31, 2025 | |||||||||||
| Amount | Percent | Amount | Percent | |||||||||
| Commercial and industrial | $ | 239,463 | 12.53 | % | $ | 249,633 | 12.80 | % | ||||
| Commercial real estate | 1,506,536 | 78.86 | % | 1,480,062 | 75.89 | % | ||||||
| Commercial real estate construction | 99,594 | 5.22 | % | 99,262 | 5.09 | % | ||||||
| Residential real estate | 21,432 | 1.12 | % | 65,290 | 3.35 | % | ||||||
| Home equity | 7,009 | 0.37 | % | 22,618 | 1.16 | % | ||||||
| Consumer | 36,228 | 1.90 | % | 33,419 | 1.71 | % | ||||||
| Total loans | 1,910,262 | 100.00 | % | 1,950,284 | 100.00 | % | ||||||
| Allowance for loan losses | 26,339 | 28,335 | ||||||||||
| Total loans, net(1) | $ | 1,883,923 | $ | 1,921,949 | ||||||||
Notes:
(1) During the six months ended June 30, 2026, the Company transferred loan balance of
| The following table presents deposits by account type for the periods indicated. | ||||||||||||||||||
| At June 30, 2026 | At December 31, 2025 | |||||||||||||||||
| Average | Average | |||||||||||||||||
| Amount | Percent | Rate | Amount | Percent | Rate | |||||||||||||
| Noninterest-bearing demand accounts | $ | 793,908 | 32.66 | % | 0.00 | % | $ | 725,656 | 31.41 | % | 0.00 | % | ||||||
| Interest bearing demand accounts | 490,746 | 20.19 | % | 0.38 | % | 419,604 | 18.16 | % | 0.72 | % | ||||||||
| Money market accounts | 255,135 | 10.49 | % | 1.34 | % | 646,688 | 27.99 | % | 1.86 | % | ||||||||
| Savings accounts | 855,385 | 35.18 | % | 1.93 | % | 359,415 | 15.56 | % | 1.45 | % | ||||||||
| Certificates of deposit | 36,017 | 1.48 | % | 1.88 | % | 159,010 | 6.88 | % | 3.46 | % | ||||||||
| Total | $ | 2,431,191 | 100.00 | % | 0.92 | % | $ | 2,310,373 | 100.00 | % | 1.12 | % | ||||||
| ORANGE COUNTY BANCORP, INC. NON-PERFORMING ASSETS (UNAUDITED) (Dollar amounts in thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Non-accrual loans: | ||||||||
| Commercial and industrial | $ | 2,388 | $ | 1,577 | ||||
| Commercial real estate | 15,618 | 8,690 | ||||||
| Commercial real estate construction | - | - | ||||||
| Residential real estate | - | 1 | ||||||
| Home equity | 833 | 844 | ||||||
| Consumer | - | - | ||||||
| Total non-accrual loans | 18,839 | 11,112 | ||||||
| Accruing loans 90 days or more past due: | ||||||||
| Commercial and industrial | 150 | 18 | ||||||
| Commercial real estate | 3,171 | - | ||||||
| Commercial real estate construction | - | - | ||||||
| Residential real estate | - | - | ||||||
| Home equity | - | - | ||||||
| Consumer | - | - | ||||||
| Total loans 90 days or more past due | 3,321 | 18 | ||||||
| Total non-performing loans | 22,160 | 11,130 | ||||||
| Other real estate owned | - | - | ||||||
| Other non-performing assets | - | - | ||||||
| Total non-performing assets | $ | 22,160 | $ | 11,130 | ||||
| Ratios: | ||||||||
| Total non-performing loans to total loans | 1.16 | % | 0.57 | % | ||||
| Total non-performing loans to total assets | 0.79 | % | 0.42 | % | ||||
| Total non-performing assets to total assets | 0.79 | % | 0.42 | % | ||||
| Net-charge-offs to total loans, YTD | 0.03 | % | 0.29 | % | ||||
