Orange County Bancorp, Inc. Announces Record Third Quarter 2025 Results

Rhea-AI Summary

Orange County Bancorp (Nasdaq: OBT) reported record third quarter results for the period ended September 30, 2025, with net income of $10.0 million (+211.5% YoY) and EPS $0.75. Key performance metrics include net interest income $27.0M (+17.3% YoY), net interest margin 4.26% (up 45 bps YoY), total loans $1.9B (+$119.9M vs. Dec 31, 2024), and total deposits $2.3B (+$125.5M vs. Dec 31, 2024).

Book value per share rose to $20.21 (+23.6% since Dec 31, 2024). Results benefited from lower provision for credit losses, improved deposit costs, and one-time noninterest gains including BOLI proceeds and an insurance recovery.

Positive

• Net income +211.5% to $10.0M for Q3 2025
• Net interest income +17.3% to $27.0M Q3 2025
• Net interest margin +45 bps to 4.26% in Q3 2025
• Total loans +$119.9M (6.6%) since Dec 31, 2024
• Total deposits +$125.5M (5.8%) since Dec 31, 2024
• Book value per share +23.6% to $20.21

Negative

• Non-interest expense +5.6% in Q3 2025 vs Q3 2024
• Q3 2025 non-interest income includes ~$2.1M one-time gains
• Uninsured deposits ~45% of total at Sept 30, 2025
• Effective tax rate rose to 23.0% from 19.7% year-over-year

News Market Reaction

+1.41%

1 alert

+1.41% News Effect

On the day this news was published, OBT gained 1.41%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

• Net Income rose $6.8 million, or 211.5%, to $10.0 million for the quarter ended September 30, 2025 as compared to $3.2 million for the quarter ended September 30, 2024
• Net Interest Income increased $4.0 million, or 17.3%, to $27.0 million for the quarter ended September 30, 2025, from $23.0 million for the quarter ended September 30, 2024
• Net Interest Margin grew 45 basis points to 4.26% for the quarter ended September 30, 2025, as compared to 3.81% for the quarter ended September 30, 2024
• Total Loans grew $119.9 million, or 6.6%, reaching $1.9 billion at September 30, 2025, as compared to $1.8 billion at December 31, 2024.
• Total Deposits rose $125.5 million, or 5.8%, to $2.3 billion at September 30, 2025, from $2.2 billion at December 31, 2024
• Book value per share increased $3.86, or 23.6%, to $20.21 at September 30, 2025, from $16.35 at December 31, 2024
• Trust and investment advisory income rose $416 thousand, or 13.3%, to $3.5 million for Q3 2025, as compared to $3.1 million for Q3 2024
  

MIDDLETOWN, N.Y., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Orange County Bancorp, Inc. (the “Company” - Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Orange Investment Advisors (“OIA”), formerly known as Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of $10.0 million, or $0.75 per basic and diluted share, for the three months ended September 30, 2025. This compares with net income of $3.2 million, or $0.28 per basic and diluted share, for the three months ended September 30, 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 reduced provision for credit losses partially offset by an increase in noninterest expense during the current period. For the nine months ended September 30, 2025, net income reached $29.2 million, or $2.39 per basic and diluted share, as compared to $20.7 million, or $1.84 per basic and diluted share, for the nine months ended September 30, 2024.

Book value per share rose $3.86, or 23.6%, from $16.35 at December 31, 2024, to $20.21 at September 30, 2025. Tangible book value per share increased $3.96, or 25.1%, from $15.80 at December 31, 2024, to $19.76 at September 30, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were due to continued earnings growth during the nine months ended September 30, 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.

“Business momentum we saw through the first half of the year continued into Q3,” said Orange County Bancorp President and CEO Michael Gilfeather. “This resulted in earnings of over $10 million for the quarter, with every segment of the bank contributing strong performance.

Loan growth remained strong for the quarter, with total loans up $17.9 million over the prior quarter end, and up $119.9 million since December 31, 2024. Our loan portfolio ended the quarter at over $1.9 billion. While regional economic activity remains robust, we continue to exercise prudent underwriting standards in the face of uncertain political, geopolitical, tariff, and interest rate policy risks. The 6.13% average yield on our loan portfolio for the quarter has improved from 5.94% for the same period last year. And while Federal Reserve guidance and a 25 basis point rate cut in September may keep downward pressure on rates, I remain confident in our team’s ability to manage through it.

Deposit growth also remains strong, with total deposits up $125.5 million, or 5.8%, to $2.3 billion at September 30, 2025, from $2.2 billion at year-end 2024. We replaced $28 million of high cost brokered deposits with organically sourced lower cost deposits during the period. For the quarter, our cost of deposits stood at 1.13%, down 17 basis points, or 13.1%, versus last quarter, and down 12 basis points, or 9.6% versus the same period last year. The decline is a function of both Fed policy and our deliberate efforts to reduce deposit costs.

Given the decrease in deposit costs and increase in our average yield on loans, the positive impact on Net Interest Margin (“NIM”) isn’t surprising. For the quarter NIM grew 45 basis points, or 11.8%, to 4.26% for the quarter ended September 30, 2025, versus 3.81% for the quarter ended September 30, 2024. Our NIM also compare very favorably on a linked quarter basis, up 20 basis points, or 4.9%, versus the prior quarter.

Our Wealth Management division also maintained its track record of growth, with trust and investment advisory income increasing $416 thousand, or 13.3%, to $3.5 million for the quarter from $3.1 million for the same period last year. As I’ve mentioned previously, we continue to view earnings from Wealth Management as an important source of revenue for the Bank. Many of our wealth clients are also borrowers and/or depositors of the Bank, reflecting our belief in the diversified suite of services we offer provides both a powerful client retention tool and effective means of consolidating business and personal finances on our platform. As further evidence of our commitment to the division, earlier this month we formally changed the name of our registered investment advisor to Orange Investment Advisors.

This quarter’s results demonstrate the power of our regional business bank strategy, and I couldn’t be more pleased. While realistic about the risks and uncertainty confronting our industry, we have a seasoned and experienced team that not only knows how to assess such risks, but also a proven track record navigating challenges and, where possible, turning them into opportunities. I want to acknowledge this and thank our employees for their expertise and commitment and our customers and shareholders for their continued confidence and support.”

Third Quarter 2025 and Year to Date Financial Review

Net Income

Net income for the third quarter of 2025 was $10.0 million, an increase of $6.8 million, or 211.5%, from net income of $3.2 million for the third quarter of 2024. The increase represents a combination of increased net interest income and non-interest income as well as reduced provision for credit losses over the same quarter last year. Net income for the nine months ended September 30, 2025 was $29.2 million, as compared to $20.7 million for the same period in 2024. The increase reflects the effect of net interest income growth combined with increased non-interest income as well as a reduced provision for credit losses during the first nine months of 2025 as compared to the prior year period. The improvements in the provision for credit losses during the third quarter of 2025 and the first nine months of 2025 as compared to the same periods in 2024 were the result of lower specific reserves associated with nonperforming loans. The increase in non-interest income includes the recognition of 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 September 30, 2025, net interest income rose $4.0 million, or 17.3%, to $27.0 million, versus $23.0 million during the same period last year. The increase was driven primarily by a $3.5 million increase in interest and fees on loans during the current period. For the nine months ended September 30, 2025, net interest income reached $75.7 million, representing an increase of $7.0 million, or 10.2%, over the first nine months of 2024.

Total interest income rose $3.1 million, or 9.8%, to $34.5 million for the three months ended September 30, 2025, compared to $31.4 million for the three months ended September 30, 2024. The increase was mainly driven by a 13.1% growth in interest and fees associated with loans during the period. For the nine months ended September 30, 2025, total interest income rose $4.6 million, or 4.9%, to $99.7 million as compared to $95.0 million for the nine months ended September 30, 2024.

Total interest expense decreased $887 thousand during the third quarter of 2025, to $7.6 million, as compared to $8.5 million in the third quarter of 2024. The decrease was primarily due to the reduction of interest costs associated with brokered time deposits and lower FHLB advances and borrowings as a result of increased customer deposit levels during the quarter. Interest expense associated with FHLB advances drawn and other borrowings during the current quarter totaled $616 thousand as compared to $1.6 million during the third quarter of 2024. During the nine months ended September 30, 2025, total interest expense fell $2.4 million, to $23.9 million, as compared to $26.3 million for the same period last year.

Provision for Credit Losses

The Company recognized a provision for credit losses of $3.9 million for the three months ended September 30, 2025, as compared to $7.2 million for the three months ended September 30, 2024. This current quarter provision included a charge-off of a participation loan and reserves associated with certain non-accrual loans as well as the impact of the methodology associated with estimated lifetime losses and the composition of loans closed during the quarter. The allowance for credit losses to total loans was 1.51% as of September 30, 2025 versus 1.44% as of December 31, 2024. For the nine months ended September 30, 2025, the provision for credit losses totaled $6.2 million as compared to $9.7 million for the nine months ended September 30, 2024. No reserves for investment securities were recorded during the first nine months of 2025 or 2024. The nine months ended September 30, 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.

Non-Interest Income

Non-interest income rose $2.6 million, or 62.6%, to $6.8 million for the three months ended September 30, 2025 as compared to $4.2 million for the three months ended September 30, 2024. The growth included the continued increased fee income in each of the Company’s fee income categories, including investment advisory income, trust income, and service charges on deposit accounts, as well as the recognition of $1.2 million related to a one-time BOLI death benefit payment and approximately $932 thousand of insurance proceeds related to a claim for a previous fraudulent incident. For the nine months ended September 30, 2025, non-interest income increased approximately $6.8 million, to $18.5 million, as compared to $11.7 million for the nine months ended September 30, 2024. The nine-month period in 2025 also included additional BOLI proceeds of approximately $3.6 million and 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.

Non-Interest Expense

Non-interest expense was $16.8 million for the third quarter of 2025, reflecting an increase of $894 thousand, or 5.6%, as compared to $16.0 million for the same period in 2024. The increase in non-interest expense for the current three-month period continues to reflect the Company’s commitment to growth. This investment consists primarily of increases in salaries and benefits, occupancy costs, information technology, deposit insurance, and other operating expenses. Our efficiency ratio improved to 49.9% for the three months ended September 30, 2025 from 58.8% for the same period in 2024. For the nine months ended September 30, 2025, our efficiency ratio also improved to 53.2% from 58.2% for the same period in 2024. Non-interest expense for the nine months ended September 30, 2025 reached $50.1 million, reflecting a $3.3 million increase over non-interest expense of $46.7 million for the nine months ended September 30, 2024.

Income Tax Expense
Provision for income taxes for the three months ended September 30, 2025 was $3.0 million, compared to $788 thousand for the same period in 2024. The increase was directly related to provisions associated with higher levels of pre-tax income as well as the effect of certain tax adjustments for the quarter. For the nine months ended September 30, 2025, the provision for income taxes was $8.7 million as compared to $5.1 million for the nine months ended September 30, 2024. Our effective tax rate for the three-month period ended September 30, 2025 was 23.0%, as compared to 19.7% for the same period in 2024. Our effective tax rate for the nine-month period ended September 30, 2025 was 23.0%, as compared to 19.9% for the same period in 2024.

Financial Condition

Total consolidated assets increased $126.5 million, or 5.0%, to $2.6 billion at September 30, 2025, as compared to $2.5 billion at December 31, 2024. The growth of the balance sheet included increases in cash, loans, and deposits offset by paydowns of borrowings during the current nine-month period.

Total cash and due from banks increased from $150.3 million at December 31, 2024, to $189.9 million at September 30, 2025, an increase of approximately $39.6 million, or 26.3%. This increase resulted primarily from higher levels of deposit balances and the completion of the common stock offering which increased cash and due from banks during the current nine-month period.

Total investment securities decreased $19.9 million, or 4.4%, from $453.5 million at December 31, 2024 to $433.6 million at September 30, 2025. The decrease was driven primarily by investment maturities during the first nine months of 2025 combined with the sale of approximately $15.0 million in securities during the period. The portfolio sale was a strategic initiative to offset a portion of the increases in non-interest income and replaced lower yielding investments in securities with higher yielding securities.

Total loans increased $119.9 million, or 6.6%, from $1.8 billion at December 31, 2024 to $1.9 billion at September 30, 2025. The increase was driven by $90.5 million of growth in commercial real estate loans, $34.1 million of increased commercial real estate construction loans, $2.2 million of increased commercial and industrial loans, and $2.7 million of growth in home equity loans. These increases were partially offset by decreases within the residential real estate and consumer loan segments.

Total deposits increased $125.5 million, to $2.3 billion at September 30, 2025, from $2.2 billion at December 31, 2024. This increase was due primarily to $60.8 million of growth in noninterest-bearing demand accounts; $112.1 million of growth in interest bearing demand accounts; and $61.8 million of growth in savings accounts. The increases in deposit accounts were offset by a $106.7 million decrease in certificates of deposit, mainly associated with brokered deposits utilized by the Bank for short term funding purposes, as well as a $2.5 million decrease in money market accounts. Deposit composition at September 30, 2025 included 50.7% 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 45% of total deposits at September 30, 2025, as compared to 39% of total deposits at December 31, 2024.

FHLBNY short-term borrowings decreased by $91.0 million, or 80.2%, to $22.5 million as of September 30, 2025, as compared to $113.5 million at December 31, 2024. The decrease in borrowings continues to be driven by increased deposits which outpaced loan growth during the first nine months of 2025 and allowed for paydowns of borrowings while maintaining higher levels of cash at September 30, 2025. The decrease in borrowings continues to reflect a strategic decision to manage liquidity sources and take advantage of opportunities to reduce funding costs.

Stockholders’ equity experienced an increase of approximately $84.6 million during the first nine months of 2025, reaching $270.1 million at September 30, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of a completed common stock offering which netted approximately $43 million, earnings of approximately $29.2 million, and a decrease in unrealized losses of approximately $15.6 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes.

At September 30, 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 12.31%, both common equity and Tier 1 capital to risk weighted assets were 16.78%, and total capital to risk weighted assets was 18.03%.

Wealth Management

At September 30, 2025, our Wealth Management Division, which includes trust and investment advisory, totaled $1.9 billion in assets under management or advisory, as compared to $1.8 billion at December 31, 2024, a 6.6% increase. Trust and investment advisory income for the quarter ended September 30, 2025 reached $3.5 million, an increase of 13.3%, or $416 thousand, as compared to $3.1 million for the quarter ended September 30, 2024.

The breakdown of trust and investment advisory assets as of September 30, 2025 and December 31, 2024, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
	At September 30, 2025								At December 31, 2024
	Amount				Percent				Amount				Percent
Investment Assets Under Management & Advisory	$	1,225,249				64.47	%		$	1,105,143				61.99	%
Trust Asset Under Administration & Management		675,257				35.53	%			677,723				38.01	%
Total	$	1,900,506				100.00	%		$	1,782,866				100.00	%

Loan Quality

At September 30, 2025, the Bank had total non-performing loans of $12.2 million, or 0.63% of total loans. Total non-accrual loans represented approximately $12.2 million of loans as of September 30, 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 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 September 30, 2025, the Bank’s cash and due from banks totaled $189.9 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 September 30, 2025, the Bank’s investment in securities available for sale was $426.6 million, of which $66.0 million was not pledged as collateral. Additionally, as of September 30, 2025, the Bank’s overnight advance line capacity at the Federal Home Loan Bank of New York was $643.4 million, of which $76.4 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of September 30, 2025, the Bank’s unused borrowing capacity with the FHLBNY was $557.0 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. At September 30, 2025, the Bank also held $66.7 million of collateral at the Federal Reserve Bank which could be utilized to provide additional funding through the discount window and an additional $171.1 million was available in borrowings through the Federal Reserve Bank’s Borrower-In-Custody (“BIC”) program. The BIC program is collateralized by loans not pledged to the FHLBNY or any other source.

The Bank also considers brokered deposits an element of its deposit strategy. As of September 30, 2025, the Bank had brokered deposit arrangements with various terms totaling $80.0 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.
	September 30, 2025				December 31, 2024
	(Dollars in thousands except for share data)
Tangible Common Equity:
Total stockholders’ equity	$	270,120			$	185,531
Adjustments:
Goodwill		(5,359	)			(5,359	)
Other intangible assets		(607	)			(821	)
Tangible common equity	$	264,154			$	179,351
Common shares outstanding		13,366,740				11,350,158
Book value per common share	$	20.21			$	16.35
Tangible book value per common share	$	19.76			$	15.80
Tangible Assets
Total assets	$	2,636,450			$	2,509,927
Adjustments:
Goodwill		(5,359	)			(5,359	)
Other intangible assets		(607	)			(821	)
Tangible assets	$	2,630,484			$	2,503,747
Tangible common equity to tangible assets		10.04	%			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 $2.6 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, tariffs, 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)
	September 30, 2025				December 31, 2024
ASSETS
Cash and due from banks	$	189,880			$	150,334
Investment securities - available-for-sale		426,631				443,775
(Amortized cost $482,994 at September 30, 2025 and $519,567 at December 31, 2024)
Restricted investment in bank stocks		6,916				9,716
Loans		1,935,676				1,815,751
Allowance for credit losses		(29,287	)			(26,077	)
Loans, net		1,906,389				1,789,674
Premises and equipment, net		15,167				15,808
Accrued interest receivable		10,514				6,680
Bank owned life insurance		32,384				42,257
Goodwill		5,359				5,359
Intangible assets		607				821
Other assets		42,603				45,503
TOTAL ASSETS	$	2,636,450			$	2,509,927
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing	$	711,951			$	651,135
Interest bearing	$	1,566,919				1,502,224
Total deposits		2,278,870				2,153,359
FHLB advances, short term		22,500				113,500
FHLB advances, long term		10,000				10,000
Subordinated notes, net of issuance costs		24,483				19,591
Accrued expenses and other liabilities		30,477				27,946
TOTAL LIABILITIES		2,366,330				2,324,396
STOCKHOLDERS' EQUITY
Common stock, $0.25 par value; 30,000,000 shares authorized;
13,374,757 and 11,366,608 issued; 13,366,740 and 11,350,158 outstanding,
at September 30, 2025 and December 31, 2024, respectively		3,344				2,842
Surplus		164,717				120,896
Retained Earnings		154,409				129,919
Accumulated other comprehensive income (loss), net of taxes		(52,151	)			(67,751	)
Treasury stock, at cost; 8,017 and 16,450 shares at September 30,
2025 and December 31, 2024, respectively		(199	)			(375	)
TOTAL STOCKHOLDERS' EQUITY		270,120				185,531
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,636,450			$	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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
INTEREST INCOME
Interest and fees on loans	$	29,839			$	26,375				85,256			$	78,767
Interest on investment securities:
Taxable		2,641				2,645				8,036				8,976
Tax exempt		506				573				1,643				1,722
Interest on Federal funds sold and other		1,542				1,843				4,724				5,556
TOTAL INTEREST INCOME		34,528				31,436				99,659				95,021
INTEREST EXPENSE
Savings and NOW accounts		5,496				5,432				15,646				15,167
Time deposits		852				1,213				5,298				5,741
FHLB advances and borrowings		616				1,593				1,922				4,734
Subordinated notes		617				230				1,078				691
TOTAL INTEREST EXPENSE		7,581				8,468				23,944				26,333
NET INTEREST INCOME		26,947				22,968				75,715				68,688
Provision (recovery) for credit losses - investments		-				-				-				(1,900	)
Provision for credit losses - loans		3,876				7,191				6,191				9,661
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES		23,071				15,777				69,524				60,927
NONINTEREST INCOME
Service charges on deposit accounts		377				270				1,001				737
Trust income		1,578				1,379				4,825				4,000
Investment advisory income		1,958				1,741				5,547				4,966
Investment securities gains(losses)		159				-				(568	)			-
Earnings on bank owned life insurance		190				39				683				551
Proceeds from bank owned life insurance		1,191				-				3,590				-
Gain on sale of assets		-				-				1,236				-
Other		1,335				745				2,146				1,413
TOTAL NONINTEREST INCOME		6,788				4,174				18,460				11,667
NONINTEREST EXPENSE
Salaries		7,378				6,687				21,096				20,298
Employee benefits		2,419				2,269				7,207				6,695
Occupancy expense		1,280				1,222				3,856				3,547
Professional fees		1,380				1,557				4,393				4,330
Directors' fees and expenses		314				584				939				781
Computer software expense		1,785				1,526				5,884				4,191
FDIC assessment		330				210				990				978
Advertising expenses		481				364				1,351				1,166
Advisor expenses related to trust income		22				30				66				95
Telephone expenses		220				190				630				565
Intangible amortization		71				71				214				214
Other		1,161				1,237				3,463				3,884
TOTAL NONINTEREST EXPENSE		16,841				15,947				50,089				46,744
Income before income taxes		13,018				4,004				37,895				25,850
Provision for income taxes		2,999				788				8,711				5,131
NET INCOME	$	10,019			$	3,216				29,184			$	20,719
Basic and diluted earnings per share	$	0.75			$	0.28			$	2.39			$	1.84
Weighted average shares outstanding		13,337,890				11,307,808				12,228,878				11,287,182
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 September 30,
		2025												2024
	Average Balance				Interest					Average Rate			Average Balance				Interest				Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,930,921			$	29,836				6.13	%		$	1,759,989			$	26,372				5.94	%
PPP Loans		140				3				8.50	%			186				3				6.40	%
Investment securities		415,885				3,039				2.90	%			463,347				3,252				2.78	%
Due from banks		153,411				1,542				3.99	%			160,563				1,843				4.55	%
Other		7,452				108				5.75	%			7,601				(34	)			(1.77	)%
Total interest earning assets		2,507,809				34,528				5.46	%			2,391,686				31,436				5.21	%
Non-interest earning assets		104,392												94,476
Total assets	$	2,612,201											$	2,486,162
Liabilities and equity:
Interest-bearing demand accounts	$	425,824			$	630				0.59	%		$	370,442			$	425				0.46	%
Money market accounts		695,959				3,642				2.08	%			695,516				4,083				2.33	%
Savings accounts		326,787				1,224				1.49	%			256,934				924				1.43	%
Certificates of deposit		96,762				852				3.49	%			116,817				1,213				4.12	%
Total interest-bearing deposits		1,545,332				6,348				1.63	%			1,439,709				6,645				1.83	%
FHLB Advances and other borrowings		55,082				616				4.44	%			127,197				1,593				4.97	%
Subordinated notes		20,560				617				11.91	%			19,561				230				4.66	%
Total interest bearing liabilities		1,620,974				7,581				1.86	%			1,586,467				8,468				2.12	%
Non-interest bearing demand accounts		702,697												688,138
Other non-interest bearing liabilities		28,529												25,947
Total liabilities		2,352,200												2,300,552
Total shareholders' equity		260,001												185,610
Total liabilities and shareholders' equity	$	2,612,201											$	2,486,162
Net interest income					$	26,947											$	22,968
Interest rate spread1										3.61	%											3.10	%
Net interest margin2										4.26	%											3.81	%
Average interest earning assets to interest-bearing liabilities		154.7	%											150.8	%
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.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
	Nine Months Ended September 30,
		2025												2024
	Average Balance				Interest				Average Rate				Average Balance				Interest				Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,880,518			$	85,247				6.06	%		$	1,742,193			$	78,761				6.02	%
PPP Loans		152				9				7.92	%			197				6				4.06	%
Investment securities		430,011				9,244				2.87	%			470,701				10,048				2.84	%
Due from banks		156,043				4,724				4.05	%			156,899				5,556				4.72	%
Other		7,066				435				8.23	%			7,945				650				10.90	%
Total interest earning assets		2,473,790				99,659				5.39	%			2,377,935				95,021				5.32	%
Non-interest earning assets		103,466												96,047
Total assets	$	2,577,256											$	2,473,982
Liabilities and equity:
Interest-bearing demand accounts	$	393,704			$	1,522				0.52	%		$	375,124			$	1,348				0.48	%
Money market accounts		694,835			$	10,997				2.12	%			660,795				11,233				2.26	%
Savings accounts		299,342			$	3,127				1.40	%			249,013				2,586				1.38	%
Certificates of deposit		179,910				5,298				3.94	%			170,079				5,741				4.50	%
Total interest-bearing deposits		1,567,791				20,944				1.79	%			1,455,011				20,908				1.91	%
FHLB Advances and other borrowings		58,035				1,922				4.43	%			123,880				4,734				5.09	%
Subordinated notes		19,928				1,078				7.23	%			19,544				691				4.71	%
Total interest bearing liabilities		1,645,754				23,944				1.95	%			1,598,435				26,333				2.19	%
Non-interest bearing demand accounts		680,266												674,727
Other non-interest bearing liabilities		28,619												26,701
Total liabilities		2,354,639												2,299,863
Total shareholders' equity		222,617												174,119
Total liabilities and shareholders' equity	$	2,577,256											$	2,473,982
Net interest income					$	75,715											$	68,688
Interest rate spread1										3.44	%											3.13	%
Net interest margin2										4.09	%											3.85	%
Average interest earning assets to interest-bearing liabilities		150.3	%											148.8	%
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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Performance Ratios:
Return on average assets (1)		1.53	%			0.52	%			1.51	%			1.12	%
Return on average equity (1)		15.41	%			6.93	%			17.48	%			15.87	%
Interest rate spread (2)		3.61	%			3.10	%			3.44	%			3.13	%
Net interest margin (3)		4.26	%			3.81	%			4.09	%			3.85	%
Dividend payout ratio (4)		17.31	%			40.44	%			16.34	%			18.79	%
Non-interest income to average total assets		1.04	%			0.67	%			0.96	%			0.63	%
Non-interest expenses to average total assets		2.58	%			2.57	%			2.59	%			2.52	%
Average interest-earning assets to average interest-bearing liabilities		154.71	%			150.76	%			150.31	%			148.77	%
		At				At
		September 30, 2025				September 30, 2024
Asset Quality Ratios:
Non-performing assets to total assets		0.46	%			0.44	%
Non-performing loans to total loans		0.63	%			0.62	%
Allowance for credit losses to non-performing loans		240.77	%			277.76	%
Allowance for credit losses to total loans		1.51	%			1.73	%
Capital Ratios (5):
Total capital (to risk-weighted assets)		18.03	%			14.89	%
Tier 1 capital (to risk-weighted assets)		16.78	%			14.89	%
Common equity tier 1 capital (to risk-weighted assets)		16.78	%			13.64	%
Tier 1 capital (to average assets)		12.31	%			10.06	%
Notes:
(1) Annualized for the three and nine month periods ended September 30, 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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Interest income	$	34,528			$	31,436			$	99,659			$	95,021
Interest expense		7,581				8,468				23,944				26,333
Net interest income		26,947				22,968				75,715				68,688
Provision for credit losses		3,876				7,191				6,191				7,761
Net interest income after provision for credit losses		23,071				15,777				69,524				60,927
Noninterest income		6,788				4,174				18,460				11,667
Noninterest expenses		16,841				15,947				50,089				46,744
Income before income taxes		13,018				4,004				37,895				25,850
Provision for income taxes		2,999				788				8,711				5,131
Net income	$	10,019			$	3,216			$	29,184			$	20,719
Basic and diluted earnings per share	$	0.75			$	0.28			$	2.39			$	1.84
Weighted average common shares outstanding		13,337,890				11,307,808				12,228,878				11,287,182
	At				At
	September 30, 2025				December 31, 2024
Book value per share	$	20.21			$	16.35
Net tangible book value per share (1)	$	19.76			$	15.80
Outstanding common shares		13,366,740				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 $607, and $821 in other intangible assets for September 30, 2025 and December 31, 2024, respectively.

ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
	At September 30, 2025								At December 31, 2024
	Amount				Percent				Amount				Percent
Commercial and industrial (a)	$	244,582				12.64	%		$	242,390				13.35	%
Commercial real estate		1,452,512				75.04	%			1,362,054				75.01	%
Commercial real estate construction		115,040				5.94	%			80,993				4.46	%
Residential real estate		68,409				3.53	%			74,973				4.13	%
Home equity		20,074				1.04	%			17,365				0.96	%
Consumer		35,059				1.81	%			37,976				2.09	%
Total loans		1,935,676				100.00	%			1,815,751				100.00	%
Allowance for loan losses		29,287								26,077
Total loans, net	$	1,906,389							$	1,789,674
(a) - Includes PPP loans of:	$	136							$	170

ORANGE COUNTY BANCORP, INC.
DEPOSITS BY ACCOUNT TYPE
(UNAUDITED)
(Dollar Amounts in thousands)
	At September 30, 2025												At December 31, 2024
	Amount				Percent				Average Rate				Amount				Percent				Average Rate
Noninterest-bearing demand accounts	$	711,951				31.24	%			0.00	%		$	651,135				30.24	%			0.00	%
Interest bearing demand accounts		443,188				19.45	%			0.60	%			331,115				15.38	%			0.42	%
Money market accounts		676,616				29.69	%			2.01	%			679,082				31.54	%			2.15	%
Savings accounts		332,832				14.61	%			1.46	%			271,014				12.59	%			1.25	%
Certificates of Deposit		114,283				5.01	%			3.48	%			221,013				10.26	%			3.97	%
Total	$	2,278,870				100.00	%			1.10	%		$	2,153,359				100.00	%			1.31	%

ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
	(Dollar Amounts in thousands)
	September 30, 2025				December 31, 2024
Non-accrual loans:
Commercial and industrial	$	2,920			$	293
Commercial real estate		8,414				6,000
Commercial real estate construction		-				-
Residential real estate		2				6
Home equity		828				-
Consumer		-				-
Total non-accrual loans		12,164				6,299
Accruing loans 90 days or more past due:
Commercial and industrial		-				-
Commercial real estate		-				-
Commercial real estate construction		-				-
Residential real estate		-				-
Home equity		-				-
Consumer		-				-
Total loans 90 days or more past due		-				-
Total non-performing loans		12,164				6,299
Other real estate owned		-				-
Other non-performing assets		-				-
Total non-performing assets	$	12,164			$	6,299
Ratios:
Total non-performing loans to total loans		0.63	%			0.35	%
Total non-performing loans to total assets		0.46	%			0.25	%
Total non-performing assets to total assets		0.46	%			0.25	%
Net-chargeoffs to total loans, YTD		0.16	%			0.48	%

FAQ

What were Orange County Bancorp (OBT) Q3 2025 net income and EPS?

OBT reported net income $10.0M and EPS $0.75 for Q3 2025.

How much did Orange County Bancorp's net interest margin (NIM) change in Q3 2025?

NIM expanded by 45 basis points to 4.26% in Q3 2025 versus Q3 2024.

How did OBT's loan and deposit balances compare to year-end 2024?

Total loans rose by $119.9M (6.6%) to $1.9B and deposits rose by $125.5M (5.8%) to $2.3B since Dec 31, 2024.

What drove the increase in OBT's book value per share to $20.21 by Sept 30, 2025?

Book value rose $3.86 (23.6%) due to earnings growth, reduced unrealized AFS losses, and net proceeds from a follow-on equity offering.

Are Q3 2025 noninterest income gains at OBT recurring?

No; Q3 2025 included one-time items such as a $1.2M BOLI death benefit and ~$0.93M insurance proceeds.

How did Orange County Bancorp's efficiency ratio change in Q3 2025?

Efficiency improved to 49.9% in Q3 2025 from 58.8% in Q3 2024.