Orange County Bancorp, Inc. Launches Public Offering of Common Stock
Rhea-AI Summary
Positive
- Potential to strengthen regulatory capital and liquidity position
- Opportunity for strategic growth through acquisitions
- Additional funds to support bank growth and investments
Negative
- Potential dilution of existing shareholders' equity
- No specific plans for acquisitions or strategic transactions identified
Insights
Orange County Bancorp's stock offering will likely dilute existing shareholders while providing capital for organic growth and potential acquisitions.
Orange County Bancorp (OBT) has launched an underwritten public offering of common stock with plans to grant underwriters a 30-day option to purchase additional shares. This capital raise represents a significant financial development for the regional bank holding company that operates Orange Bank & Trust and Hudson Valley Investment Advisors.
The offering will likely dilute existing shareholders but provides essential capital to fuel the company's growth strategy. Management has outlined several potential uses for the proceeds, including:
- Supporting continued organic growth of the Bank
- Augmenting regulatory capital positions
- Enhancing liquidity
- Providing financial flexibility for potential strategic acquisitions
While the company explicitly states it has "no current plans, arrangements or understandings relating to any specific acquisition," the capital raise positions OBT to act opportunistically in a banking environment that has seen increased consolidation among regional institutions.
The timing of this offering is noteworthy as it suggests management believes additional capital is needed beyond what organic earnings can provide in the near term. The registration on Form S-3 (File No. 333-280793) indicates this was a planned strategic move rather than a reactive capital raise.
With Piper Sandler and Stephens serving as joint book-running managers, this offering benefits from strong institutional banking support. However, investors should monitor the pricing of the offering relative to book value and the degree of dilution, which will be critical factors in determining whether this capital raise creates long-term shareholder value.
MIDDLETOWN, N.Y., June 03, 2025 (GLOBE NEWSWIRE) -- Orange County Bancorp, Inc. (the “Company” - Nasdaq: OBT), parent company of Orange Bank & Trust Company, (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced it launched an underwritten public offering of shares of its common stock. The Company also expects to grant the underwriters a 30-day option to purchase additional shares of its common stock.
The Company plans to use the net proceeds from the offering for general corporate purposes, which may include investments in the Bank supporting continued growth, augmenting regulatory capital and liquidity and providing for potential strategic acquisitions. The Company has no current plans, arrangements or understandings relating to any specific acquisition or similar transaction.
Piper Sandler & Co. and Stephens Inc. are serving as joint book-running managers.
The Company has filed with the Securities and Exchange Commission (the “SEC”) a shelf registration statement (including a prospectus) on Form S-3 (File No. 333-280793) and a preliminary prospectus supplement for the offering to which this press release relates. Before you invest, you should read the preliminary prospectus supplement and the accompanying prospectus, including the information incorporated by reference therein, and the other documents we have filed and will file with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Electronic copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained from Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, or by phone at 1-800-747-3924, or by email at prospectus@psc.com, or Stephens Inc., 111 Center Street, Little Rock, AR 72201, or by phone at 1-800-643-9691.
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus relating thereto.
About Orange County Bancorp, Inc.
Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley 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
The information disclosed in this press release includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: 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, tariffs, 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 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
FAQ
What is the purpose of Orange County Bancorp's (OBT) stock offering in 2025?
Who are the underwriters for OBT's 2025 public stock offering?
How will Orange County Bancorp use the proceeds from its 2025 stock offering?
What option is being granted to the underwriters in OBT's 2025 stock offering?
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