OBT ORANGE CTY BCP

NASDAQ
$39.85

Orange County Bancorp, Inc. Announces Record Third Quarter Earnings

Wednesday, October 28, 2026 · 4:30 PM ET GlobeNewswire
  • Net Income increased $2.5 million, or 24.6%, to $12.5 million for the quarter ended September 30, 2026, from $10.0 million for the quarter ended September 30, 2025, marking record third quarter earnings
  • Net Interest Margin increased 19 basis points, or 4.4%, to 4.45% for the three months ended September 30, 2026, from 4.26% for the three months ended September 30, 2025
  • Total Deposits increased $56.0 million, or 2.4%, to $2.4 billion at September 30, 2026, from $2.3 billion at September 30, 2025
  • Total Loans, including loans held-for-sale, were $2.0 billion at September 30, 2026, a comparable level from December 31, 2025 and up from $1.9 billion at September 30, 2025
  • Earnings per share increased $0.18 per share, or 24.2%, to $0.93 per share for the quarter ended September 30, 2026, from $0.75 per share for the quarter ended September 30, 2025
  • Book value per share grew $1.77, or 8.3%, to $23.04 at September 30, 2026, from $21.27 at December 31, 2025

MIDDLETOWN, N.Y., Oct. 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 $12.5 million, or $0.93 per basic and diluted share, for the three months ended September 30, 2026. This compares with net income of $10.0 million, or $0.75 per basic and diluted share, for the three months ended September 30, 2025. The increase in earnings per share, basic and diluted, was due primarily to an increase in net interest income, which included a reduction in borrowing costs due to deposit growth, and reduction in provision for credit losses, partially offset by a decrease in noninterest income, resulting from the recognition of bank owned life insurance income in the prior year period. For the nine months ended September 30, 2026, net income reached $37.4 million, or $2.80 per basic and diluted share, as compared to $29.2 million, or $2.39 per basic and diluted share, for the nine months ended September 30, 2025.

Book value per share grew $1.77, or 8.3%, from $21.27 at December 31, 2025 to $23.04 at September 30, 2026. Tangible book value per share grew $1.79, or 8.6%, from $20.83 at December 31, 2025 to $22.62 at September 30, 2026 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were due primarily to earnings growth and included the reclassification of treatment of equity compensation during the nine months ended September 30, 2026, as well as reversal of the valuation allowance associated with the deferred tax asset offset by the valuation loss on loans held-for-sale.

“I am very pleased to announce record earnings for the third quarter led by strong deposit and loan growth, and further expansion in net interest margin,” said Orange County Bancorp President and CEO Michael Gilfeather. “This marks our third consecutive quarter of record earnings in 2026, a fact made particularly impressive by the challenging macro-economic environment in which we are operating.”

“For the quarter ended September 30, 2026, the Company earned $12.5 million, up $2.5 million, or 24.6%, from the quarter ended September 30, 2025. The increase reflects greater interest income from our loan portfolio, bolstered by an additional $31.2 million of loan growth during the period. This increased our total loan portfolio to $2.0 billion at quarter end from $1.9 billion at September 30, 2025. The average yield of the loan portfolio during the period was 6.19%, up 16 basis points, or 2.7%, from 6.03% the prior quarter, and up six basis points, or 1%, from 6.13% the same quarter last year. The reduction of our home equity loan portfolio is consistent with our longstanding, strategic, business-bank focus. As stated last quarter, we also plan to reduce our residential loan exposure, with a goal of exiting those loans by year end. In further streamlining and consolidating our operational focus, as well as generating incremental liquidity, we believe these sales better position the Bank to manage interest rate and other risks.

Our deliberate effort to lower deposit costs through organic growth was successful in Q3. Total Deposits grew $56.0 million, or 2.4%, to $2.4 billion at September 30, 2026, from $2.3 billion at September 30, 2025. Much of this growth came in the form of core deposits, enabling us to further reduce our use of higher cost, broker-sourced deposits and borrowings. Success in this effort resulted in an average cost of deposits for the quarter of 0.96%, a level comparable to the prior quarter, but down 16 basis points, or 14.6%, from 1.12% during the same quarter last year. Our low-cost deposit base has long been and remains a key competitive operating advantage of the Bank.

Continued growth of our loan and deposit portfolios, along with an increase in loan yields resulted in a commensurate expansion of net interest margin. For the quarter, our net interest margin increased 19 basis points, or 4.4%, to 4.45%, compared with 4.26% for the three months ended September 30, 2025. Our dedicated institutional focus, robust loan origination and underwriting, and strong client relationships contribute to earnings, and they continue to be key drivers behind overall growth.

Our Wealth Management division, comprised of Trust and Advisory businesses, continued to experience uneven results during the quarter. While our Trust services group saw earnings expand in the current quarter, our Investment Advisory business saw reduction in AUM and lower earnings due to last year’s divisional restructuring and challenging fixed-income market performance. Together these businesses generated $4.0 million for the quarter, up a combined $445 thousand or 12.6% from Q3 2025, but still below our long-term goal. Wealth management remains an important source of additional fee income for the Bank and our overall customer focused strategy.

Over the past several years, we have consistently demonstrated that diligent implementation of our business strategy by a highly knowledgeable, committed, and empowered team has enabled the Bank to manage the challenges of uncertain and volatile markets. The current quarter and year-to-date September 30, 2026, are no exception and continue to give us confidence in the opportunities ahead. While grateful for our strong recent performance, we don’t take it for granted and will continue to apply our experience and expertise to support our clients, prudently manage risk, and pursue compelling business opportunities. I want to conclude by thanking our employees, customers, and shareholders for their respective efforts, support, and confidence in helping us achieve yet another quarter of record results.”

Third Quarter and Year to Date 2026 Financial Review

Net Income

Net income for the third quarter of 2026 was $12.5 million, an increase of $2.5 million, or 24.6%, from net income of $10.0 million for the third quarter of 2025. The growth in net income represents a combination of increased net interest income and reduced provision for credit losses, partially offset by reduced non-interest income during the quarter. The latter included a decrease in the bank owned life insurance income of $1.2 million in the prior year, as well as increased noninterest expense. Net income for the nine months ended September 30, 2026, was $37.4 million, an increase of $8.2 million, or 28.3%, from net income of $29.2 million for the nine months ended September 30, 2025.

Net Interest Income

For the three months ended September 30, 2026, net interest income rose $2.9 million, or 11.0%, to $29.9 million as compared to $27.0 million during the same period last year. This reflects an increase in total interest income of $1.7 million as a result of growth in interest and fees associated with loans and a $1.3 million decrease in total interest expense due to lower interest expense resulting from reduced borrowing costs and lower brokered deposit costs during the period. For the nine months ended September 30, 2026, net interest income reached $86.2 million representing an increase of $10.5 million, or 13.9% compared to the same period last year.

Total interest income rose $1.7 million, or 4.9%, to $36.2 million for the three months ended September 30, 2026, compared to $34.5 million for the three months ended September 30, 2025. The increase reflected 4.3% growth in interest and fees associated with loans coupled with increased interest income associated with fed funds and balances held at correspondent banks offset by a net decrease in interest income associated with investment securities. For the nine months ended September 30, 2026, total interest income rose $5.5 million, or 5.5%, to $105.2 million as compared to $99.7 million for the nine months ended September 30, 2025.

Total interest expense decreased $1.3 million during the third quarter of 2026, to $6.3 million, as compared to $7.6 million in the third quarter of 2025. Interest expense from FHLB advances and borrowings during the current quarter totaled $100 thousand as compared to $616 thousand during the third quarter of 2025. The decrease was primarily due to lower average balances and costs associated with FHLB borrowings. Interest expense associated with time deposits decreased to $159 thousand for the third quarter of 2026 from $852 thousand for the third quarter of 2025. This decrease represented the impact of lower brokered deposit levels due to increased core deposits over the same time period. Interest expense associated with savings and NOW accounts totaled $5.6 million during the third quarter of 2026 compared to $5.5 million during the third quarter of 2025. Interest expense related to subordinated notes decreased and totaled $429 thousand during the third quarter of 2026 as compared to $617 thousand during the third quarter of 2025. During the nine months ended September 30, 2026, total interest expense fell $5.0 million, to $18.9 million, as compared to $23.9 million for the same period last year.

Provision for Credit Losses

The Company recognized a provision for credit losses of $809 thousand for the three months ended September 30, 2026 as compared to $3.9 million for the three months ended September 30, 2025. This current quarter provision was due primarily to loan growth and represented appropriate reserves associated with the composition of loans closed during the third quarter of 2026. The allowance for credit losses to loans was 1.38% as of September 30, 2026 versus 1.45% as of December 31, 2025 and 1.51% as of September 30, 2025. For the nine months ended September 30, 2026, the provision for credit losses reflected a recovery of $641 thousand as compared to a provision of $6.2 million for the nine months ended September 30, 2025. No additional reserves for investment securities were recorded during the first nine months of 2026 or 2025.

Non-Interest Income

Non-interest income decreased $1.4 million, or 20.8%, to $5.4 million for the three months ended September 30, 2026 as compared to $6.8 million for the three months ended September 30, 2025. This reduction was related primarily to the recognition of $1.2 million of income associated with BOLI payments related to insurance death benefits in the prior year and, a $496 thousand decrease in investment advisory income, partially offset by the increase of $941 thousand in trust income and a recognition of a $281 thousand in valuation gain associated with loans held-for-sale. The Company’s other fee income categories remained relatively flat during the quarter and year to date. For the nine months ended September 30, 2026, non-interest income decreased $9.6 million, to $8.9 million, as compared to $18.5 million for the nine months ended September 30, 2025.

Non-Interest Expense

Non-interest expense was $17.2 million for the third quarter of 2026, reflecting an increase of $391 thousand, or 2.3%, as compared to $16.8 million for the same period in 2025. The increase in non-interest expense for the current quarter reflected the Company’s investment in growth. This investment during the third quarter was driven by increased professional fees associated with technology and our marketing platform at OIA as well as increased computer expense. Our efficiency ratio, which is a non-GAAP measurement, decreased to 48.8% for the three months ended September 30, 2026, from 49.9% for the same period in 2025. For the nine months ended September 30, 2026, our efficiency ratio increased to 55.1% from 53.2% for the same period in 2025. Adjusted for the impact of the valuation loss on loans held-for-sale, the efficiency ratios for the three and the nine months ended September 30, 2026, would have been 49.2% and 52.6%, respectively (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). Non-interest expense for the nine months ended September 30, 2026 reached $52.4 million, reflecting a $2.3 million increase over non-interest expense of $50.1 million for the nine months ended September 30, 2025.

Income Tax Expense

Provision for income taxes for the three months ended September 30, 2026 was $4.8 million, as compared to $3.0 million for the three months ended September 30, 2025. The increase in the provision for income tax was related to the Company’s increase in income before income taxes compared to the same period in the prior year. For the nine months ended September 30, 2026, the provision for income taxes was $6.0 million as compared to $8.7 million for the nine months ended September 30, 2025, due to the impact of reversal of the valuation allowance during second quarter 2026. Our effective tax rate for the three-month period ended September 30, 2026, was 27.6%, as compared to 23.0% for the same period in 2025. Our effective tax rate for the nine-month period ended September 30, 2026, was 13.8%, (which included the effect of the reversal of the valuation allowance during second quarter 2026), as compared to 23.0% for the same period in 2025.

Financial Condition

Total consolidated assets increased by $78.4 million, or 2.9%, exceeding $2.7 billion at September 30, 2026, from a comparable level at December 31, 2025. The increase primarily reflects an increase in cash and loans (including loans held-for-sale) during the current nine-month period.

Total cash and due from banks increased from $204.2 million at December 31, 2025, to $244.6 million at September 30, 2026, an increase of approximately $40.4 million, or 19.8%. This increase resulted mainly from higher levels of client deposit balances and net cash flows from maturities and paydowns of securities, as well as proceeds from the home equity loan sale which elevated cash levels at quarter end.

Total investment securities decreased $33.3 million, or 7.9%, from $419.4 million at December 31, 2025, to $386.1 million at September 30, 2026. The decrease continues to be driven primarily by investment repayments, calls and maturities during the first nine months of 2026.

Total loans, including loans held-for-sale, increased $59.1 million, or 3.0%, to $2.0 billion at September 30, 2026, from December 31, 2025. The loan portfolio experienced growth in commercial real estate, commercial real estate construction, and consumer loans offset by decreases in commercial and industrial loans, and home equity lines of credit.

During the nine months ended September 30, 2026, the Company transferred loans with an aggregate principal balance of $68.4 million from the loan portfolio to loans held-for-sale. At the date of transfer, the loans were recorded as held-for-sale at $63.6 million, net of a valuation allowance of $4.8 million. During third quarter 2026, the Company sold $18.4 million of home equity loans from the loans held-for-sale portfolio. As of September 30, 2026, the loans held-for-sale portfolio consisted of approximately $42.6 million of residential real estate loans, net of valuation allowance of $4.5 million.

The nine months ended September 30, 2026, also included $129.3 million of loan prepayments compared to $34.8 million for the nine months ended September 30, 2025.

Total deposits increased $56.0 million, to $2.4 billion at September 30, 2026, from $2.3 billion at December 31, 2025. The increase was due primarily to a $165.1 million, or 16.4%, increase in savings and money market accounts which totaled approximately $1.2 billion at September 30, 2026, as compared to $1.0 billion at December 31, 2025. Non-interest-bearing demand deposits increased $51.1 million, or 7.0% to $776.8 million at September 30, 2026 from $725.7 million at December 31, 2025. The increase in deposits was partially offset by interest bearing demand deposits which decreased $34.0 million, or 8.1%, to $385.6 million at September 30, 2026, compared to $419.6 million at December 31, 2025. Certificates of deposit represented a $126.3 million decrease as the increased deposit levels of transaction accounts provided for run-off of maturing brokered deposits during the period. Deposit composition at September 30, 2026, included 49.1% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represented approximately 50% and 46% of total deposits at September 30, 2026, and December 31, 2025, respectively.

FHLBNY long-term borrowings remained at $10.0 million at September 30, 2026 and December 31, 2025, respectively. The stability and low level in borrowings represents the effect of deposit growth outpacing loan growth during the quarter, allowing for low borrowing levels and higher cash levels at September 30, 2026.

Stockholders’ equity increased $24.6 million, or 8.7%, to $309.0 million at September 30, 2026, from $284.4 million at December 31, 2025. The increase was due to the effect of $37.4 million in net income as well as a liability-to-equity reclassification of equity awards in the amount of $2.3 million offset by a $9.8 million increase in unrealized losses on the market value of investment securities in the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), dividends of $7.2 million and $1.9 million increase in stock based compensation, net of taxes during the first nine months of 2026.

At September 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 13.19%, both common equity and Tier 1 capital-to-risk-weighted-assets were 17.99%, and total-capital-to-risk-weighted-assets was 19.24%.

Wealth Management

At September 30, 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 September 30, 2026, was $4.0 million, representing an increase of $445 thousand, or 12.6%, as compared to $3.5 million for the three months ended September 30, 2025.

The breakdown of trust and investment advisory assets as of September 30, 2026 and December 31, 2025, respectively, is as follows:

  At September 30, 2026 At December 31, 2025
  Amount Percent Amount Percent
  (Dollars in thousands)
Investment Assets Under Management & Advisory $913,719 55.65% $1,184,317 62.73%
Trust Asset Under Administration & Management  728,252 44.35%  703,544 37.27%
Total $1,641,971 100.00% $1,887,861 100.00%
             

Loan Quality

At September 30, 2026, the Bank had total non-performing loans of $19.4 million, or 0.98% of total loans. Total non-accrual loans represented $19.1 million of loans as of September 30, 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, partially offset by settlement of a previously reported participation loan for an office complex. Total accruing loans 90 days or more past due represented $282 thousand of commercial and industrial loans as of September 30, 2026, compared to $18 thousand at December 31, 2025.

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, 2026, the Bank’s cash and due from banks totaled $244.6 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, 2026, the Bank’s investment in securities available for sale was $386.1 million, of which $44.9 million was not pledged as collateral or specifically designated to any borrowings. Additionally, as of September 30, 2026, the Bank’s overnight advance line capacity at the FHLBNY was $662.9 million, of which $66.4 million was used to collateralize municipal deposits and $10.0 million was utilized for long term advances. As of September 30, 2026, the Bank’s unused borrowing capacity at the FHLBNY was $586.5 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 at 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 $210.8 million at September 30, 2026. At September 30, 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 September 30, 2026, the Bank did not have any brokered deposit arrangements.

Non-GAAP Financial Measure Reconciliations

The following table reconciles, as of the dates set forth below, stockholders’ equity (non-GAAP) to tangible equity and total assets (non-GAAP) to tangible assets and calculates our tangible book value per share.

  September 30,    December 31,
  2026
 2025
  (Dollars in thousands except per share data)
Tangible Common Equity:      
Total stockholders’ equity $308,996  $284,364 
Adjustments:      
Goodwill  (5,359)  (5,359)
Other intangible assets  (321)  (535)
Tangible common equity  $303,316  $278,470 
       
Common shares outstanding  13,411,153   13,368,447 
Book value per common share $23.04  $21.27 
Tangible book value per common share $22.62  $20.83 
       
Tangible Assets      
Total assets $2,737,747  $2,659,377 
Adjustments:      
Goodwill  (5,359)  (5,359)
Other intangible assets  (321)  (535)
Tangible assets $2,732,067  $2,653,483 
Tangible common equity to tangible assets  11.10%  10.49%
         

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

   Three Months Ended   Nine Months Ended
  September 30, September 30,
  2026
 2025
 2026
 2025
  (Dollars in thousand)
Efficiency ratio - as reported (non-GAAP) (1)  48.8%  49.9%  55.1%  53.2%
Noninterest expense - as reported $17,231  $16,840  $52,424  $50,089 
Net interest income - as reported  29,921   26,947   86,244   75,715 
Noninterest income - as reported  5,374   6,787   8,944   18,460 
Adjustments:            
Valuation allowance on loans held-for-sale  (281)  —   4,480   — 
Net (gain) loss on sale of securities  —   (159)  —   568 
Proceeds from bank owned life insurance benefit  —   (1,191)  —   (3,590)
Gain on sale of assets  —   —   —   (1,236)
Adjusted noninterest income (non-GAAP) $5,093  $5,437  $13,424  $14,202 
Adjusted efficiency ratio (non-GAAP) (2)  49.2%  52.0%  52.6%  55.7%
             

Notes:

(1) The reported efficiency ratio is a (non-GAAP) measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income.
(2) The adjusted efficiency ratio is a (non-GAAP) measure calculated by dividing adjusted noninterest expense by the sum of GAAP net interest income and adjusted noninterest income.

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)
       
     September 30,    December 31,
  2026
 2025
ASSETS      
Cash and due from banks $244,571  $204,232 
Investment securities – available-for-sale
(amortized cost $452,751 net of allowance for credit losses of $0 at September 30, 2026 and $472,097, net of allowance for credit losses of $0 at December 31, 2025)		  386,106   419,406 
Restricted investment in bank stocks  6,016   5,917 
Loans held-for-sale, net  42,572   — 
Loans  1,966,837   1,950,284 
Allowance for credit losses  (27,189)  (28,335)
Loans, net  1,939,648   1,921,949 
Premises and equipment, net  15,170   15,482 
Accrued interest receivable  10,540   10,383 
Bank owned life insurance  33,162   32,578 
Goodwill  5,359   5,359 
Intangible assets  321   535 
Other assets  54,282   43,536 
TOTAL ASSETS $2,737,747  $2,659,377 
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Deposits:      
Noninterest bearing $776,773  $725,656 
Interest bearing  1,589,567   1,584,717 
Total deposits  2,366,340   2,310,373 
FHLB advances, long term  10,000   10,000 
Subordinated notes, net of issuance costs  24,626   24,555 
Accrued expenses and other liabilities  27,785   30,085 
TOTAL LIABILITIES  2,428,751   2,375,013 
STOCKHOLDERS’ EQUITY      
Common stock, $0.25 par value; 30,000,000 shares authorized; 13,419,170 and 13,376,464 issued; 13,411,153 and 13,368,447 outstanding, at September 30, 2026 and December 31, 2025, respectively  3,355   3,344 
Surplus  168,808   164,592 
Retained Earnings  194,629   164,434 
Accumulated other comprehensive income (loss), net of taxes  (57,597)  (47,807)
Treasury stock, at cost; 8,017 shares at September 30, 2026 and December 31, 2025, respectively  (199)  (199)
TOTAL STOCKHOLDERS’ EQUITY  308,996   284,364 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $2,737,747  $2,659,377 
         


ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATEDSTATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
             
     Three Months Ended  Nine Months Ended
  September 30, September 30,
     2026    2025 2026
    2025
INTEREST INCOME                
Interest and fees on loans $31,108 $29,839 $90,523  $85,256 
Interest on investment securities:            
Taxable  2,393  2,641  7,323   8,036 
Tax exempt  492  506  1,493   1,643 
Interest on Federal funds sold and other  2,213  1,542  5,836   4,724 
TOTAL INTEREST INCOME  36,206  34,528  105,175   99,659 
INTEREST EXPENSE            
Savings and NOW accounts  5,597  5,496  16,185   15,646 
Time deposits  159  852  1,125   5,298 
FHLB advances  100  616  332   1,922 
Subordinated notes  429  617  1,289   1,078 
TOTAL INTEREST EXPENSE  6,285  7,581  18,931   23,944 
NET INTEREST INCOME  29,921  26,947  86,244   75,715 
Provision (credit) for credit losses - loans  809  3,876  (641)  6,191 
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES  29,112  23,071  86,885   69,524 
NONINTEREST INCOME             
Service charges on deposit accounts  359  377  1,043   1,001 
Trust income  2,519  1,578  5,912   4,825 
Investment advisory income  1,461  1,957  4,555   5,547 
Investment securities gains (losses), net  —  159  —   (568)
Earnings on bank owned life insurance  197  190  584   683 
Proceeds from bank owned life insurance benefit  —  1,191  —   3,590 
Gain on sale of assets  —  —  —   1,236 
Valuation allowance on loans held-for-sale  281  —  (4,480)  — 
Other  557  1,335  1,330   2,146 
TOTAL NONINTEREST INCOME  5,374  6,787  8,944   18,460 
NONINTEREST EXPENSE            
Salaries  7,003  7,378  21,924   21,096 
Employee benefits  2,490  2,419  8,597   7,207 
Occupancy expense  1,254  1,280  3,841   3,856 
Professional fees  1,608  1,380  4,934   4,393 
Directors’ fees and expenses  536  314  1,693   939 
Computer software expense  1,998  1,785  5,836   5,884 
FDIC assessment  210  330  700   990 
Advertising expenses  486  481  1,407   1,351 
Advisor expenses related to trust income  30  22  80   66 
Telephone expenses  243  220  781   630 
Intangible amortization  71  71  214   214 
Other  1,302  1,160  2,417   3,463 
TOTAL NONINTEREST EXPENSE  17,231  16,840  52,424   50,089 
Income before income taxes  17,255  13,018  43,405   37,895 
Provision for income taxes  4,769  2,999  5,976   8,711 
NET INCOME $12,486 $10,019 $37,429  $29,184 
             
Basic and diluted earnings per share $0.93 $0.75 $2.80  $2.39 
Weighted average shares outstanding  13,383,550  13,337,890  13,372,387   12,228,878 
               


ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
                   
  For the Three Months Ended September 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)  $1,995,413 $31,108 6.19%   $1,931,061 $29,839 6.13%
Investment securities available for sale  394,461  2,802 2.82%    415,885  3,039 2.90%
Cash and due from banks and other  270,843  2,213 3.24%    153,411  1,542 3.99%
Restricted stock  6,018  83 5.47%    7,452  108 5.75%
Total interest-earning assets  2,666,735  36,206 5.39%    2,507,809  34,528 5.46%
Noninterest-earning assets  96,983          104,392        
Total assets $2,763,718         $2,612,201        
Interest-bearing liabilities:                        
Interest-bearing demand deposits $415,994 $265 0.25%   $425,824 $630 0.59%
Money market deposits  413,972  1,524 1.46%    695,959  3,642 2.08%
Savings deposits  741,467  3,808 2.04%    326,787  1,224 1.49%
Certificates of deposit  33,804  159 1.87%    96,762  852 3.49%
Total interest-bearing deposits  1,605,237  5,756 1.42%    1,545,332  6,348 1.63%
FHLB Advances and other borrowings  10,000  100 3.97%    55,082  616 4.44%
Subordinated notes  24,611  429 6.92%    20,560  617 11.91%
Total interest-bearing liabilities  1,639,848  6,285 1.52%    1,620,974  7,581 1.86%
Noninterest-bearing demand deposits  782,380          702,697        
Other noninterest-bearing liabilities  29,863          28,529        
Total liabilities  2,452,091          2,352,200        
Total stockholders’ equity  311,627          260,001        
Total liabilities and stockholders’ equity $2,763,718         $2,612,201        
Net interest income     $29,921         $26,947    
Net interest rate spread (2)       3.87%           3.61%  
Net interest margin (3)       4.45%           4.26%  
Average interest-earning assets to interest-bearing liabilities  162.6%       154.7%     

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.
Certain reclassification has been made to the amounts within interest-earning assets to conform to the current-period presentation. These reclassifications had no effect on previously reported net income or stockholders’ equity.

ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)
                   
  For the Nine Months Ended September 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)  $1,973,589 $90,523 6.13%   $1,880,670 $85,256 6.06%
Investment securities available for sale  404,971  8,568 2.83%    430,011  9,244 2.87%
Cash and due from banks and other  235,702  5,836 3.31%    156,043  4,724 4.05%
Restricted stock  6,038  248 5.49%    7,066  435 8.23%
Total interest-earning assets  2,620,300  105,175 5.37%    2,473,790  99,659 5.39%
Noninterest-earning assets  91,117         103,466       
Total assets $2,711,417         $2,577,256        
Interest-bearing liabilities:                        
Interest-bearing demand deposits $444,315 $1,496 0.45%   $393,704 $1,522 0.52%
Money market deposits  437,016  4,949 1.51%    694,835  10,997 2.12%
Savings deposits  658,011  9,740 1.98%    299,342  3,127 1.40%
Certificates of deposit  55,299  1,125 2.72%    179,910  5,298 3.94%
Total interest-bearing deposits  1,594,641  17,310 1.45%    1,567,791  20,944 1.79%
FHLB Advances and other borrowings  11,202  332 3.96%    58,035  1,922 4.43%
Subordinated notes  24,587  1,289 7.01%    19,928  1,078 7.23%
Total interest-bearing liabilities  1,630,430  18,931 1.55%    1,645,754  23,944 1.95%
Noninterest-bearing demand deposits  750,409          680,266        
Other noninterest-bearing liabilities  30,689          28,619        
Total liabilities  2,411,528          2,354,639        
Total stockholders’ equity  299,889          222,617        
Total liabilities and stockholders’ equity $2,711,417         $2,577,256        
Net interest income     $86,244         $75,715    
Net interest rate spread (2)       3.82%           3.44%  
Net interest margin (3)       4.40%           4.09%  
Average interest-earning assets to interest-bearing liabilities  160.7%       150.3%     

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.
Certain reclassification has been made to the amounts within interest-earning assets to conform to the current-period presentation. These reclassifications had no effect on previously reported net income or stockholders’ equity.

ORANGE COUNTY BANCORP, INC.
SELECTED RATIOS AND OTHER DATA
(UNAUDITED)

 Three Months Ended  Nine Months Ended
 September 30, September 30,
 2026
 2025
 2026
 2025
Performance Ratios:        
Return on average assets (1)1.81% 1.53% 1.84% 1.51%
Return on average equity (1)16.03% 15.41% 16.64% 17.48%
Interest rate spread (2)3.87% 3.61% 3.82% 3.44%
Net interest margin (3)4.45% 4.26% 4.40% 4.09%
Dividend payout ratio (4)19.29% 17.31% 19.29% 16.34%
Non-interest income to average total assets0.78% 1.04% 0.44% 0.96%
Non-interest expenses to average total assets2.49% 2.58% 2.58% 2.59%
Average interest-earning assets to average interest-bearing liabilities162.62% 154.71% 160.71% 150.31%
        
 At September 30,    
 2026
 2025
    
Asset Quality Ratios:       
Non-performing assets to total assets0.71% 0.46%    
Non-performing loans to total loans0.98% 0.63%    
Allowance for credit losses to non-performing loans140.42% 240.77%    
Allowance for credit losses to total loans1.38% 1.51%    
        
Capital Ratios (5):       
Total capital (to risk-weighted assets)19.24% 18.03%    
Tier 1 capital (to risk-weighted assets)17.99% 16.78%    
Common equity tier 1 capital (to risk-weighted assets)17.99% 16.78%    
Tier 1 capital (to average assets)13.19% 12.31%    

Notes:

(1) Annualized for the three and nine months ended September 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 September 30,  Nine Months Ended September 30,
  2026 2025 2026
 2025
Interest income $36,206 $34,528 $105,175  $99,659
Interest expense  6,285  7,581  18,931   23,944
Net interest income  29,921  26,947  86,244   75,715
Provision (credit) for credit losses  809  3,876  (641)  6,191
Net interest income after provision (credit) for credit losses  29,112  23,071  86,885   69,524
Noninterest income  5,374  6,787  8,944   18,460
Noninterest expenses  17,231  16,840  52,424   50,089
Income before income taxes  17,255  13,018  43,405   37,895
Provision for income taxes  4,769  2,999  5,976   8,711
Net income $12,486 $10,019 $37,429  $29,184
             
Basic and diluted earnings per share $0.93 $0.75 $2.80  $2.39
Weighted average common shares outstanding  13,383,550  13,337,890  13,372,387   12,228,878
             
             
  At September 30, At December 31,      
  2026 2025      
Book value per share $23.04 $21.27      
Net tangible book value per share (1) $22.62 $20.83      
Outstanding common shares  13,411,153  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 $5.4 million in goodwill for September 30, 2026, and December 31, 2025, respectively, and $321 thousand, and $535 thousand in other intangible assets for September 30, 2026, and December 31, 2025, respectively.

ORANGE COUNTY BANCORP, INC.
SELECTED OPERATING DATA
(UNAUDITED)
(Dollar amounts in thousands)

The following table presents loan composition for the periods indicated.

           
  At September 30, 2026 At December 31, 2025
  Amount Percent Amount Percent
Commercial and industrial $243,652 12.39% $249,633 12.80%
Commercial real estate  1,529,625 77.77%  1,480,062 75.89%
Commercial real estate construction  114,160 5.80%  99,262 5.09%
Residential real estate  22,789 1.16%  65,290 3.35%
Home equity  9,558 0.49%  22,618 1.16%
Consumer  47,053 2.39%  33,419 1.71%
Total loans  1,966,837 100.00%  1,950,284 100.00%
Allowance for loan losses  27,189    28,335  
Total loans, net(1) $1,939,648   $1,921,949  

Notes:

(1) During the nine months ended September 30, 2026, the Company transferred loan balance of $63.6 million from loans to loans held-for-sale, net of valuation allowance of $4.8 million. During the nine months ended September 30, 2026, the Company sold $18.4 million of home equity loans from the loans held-for-sale portfolio. As of September 30, 2026, the loans held-for-sale portfolio consisted of approximately $42.6 million of residential real estate loans, net of valuation allowance of $4.5 million.

The following table presents deposits by account type for the periods indicated.

  At September 30, 2026 At December 31, 2025
       Average      Average
  Amount Percent Rate Amount Percent Rate
Noninterest-bearing demand accounts $776,773 32.83% 0.00% $725,656 31.41% 0.00%
Interest bearing demand accounts  385,630 16.30% 0.17%  419,604 18.16% 0.72%
Money market accounts  247,846 10.47% 1.35%  646,688 27.99% 1.86%
Savings accounts  923,380 39.02% 2.04%  359,415 15.56% 1.45%
Certificates of deposit  32,711 1.38% 1.83%  159,010 6.88% 3.46%
Total $2,366,340 100.00% 0.99% $2,310,373 100.00% 1.12%
                   


ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
(Dollar amounts in thousands)
       
  September 30, December 31,
  2026
 2025
Non-accrual loans:      
Commercial and industrial $2,410  $1,577 
Commercial real estate  15,843   8,690 
Commercial real estate construction  —   — 
Residential real estate  —   1 
Home equity  827   844 
Consumer  —   — 
Total non-accrual loans  19,080   11,112 
Accruing loans 90 days or more past due:      
Commercial and industrial  282   18 
Commercial real estate  —   — 
Commercial real estate construction  —   — 
Residential real estate  —   — 
Home equity  —   — 
Consumer  —   — 
Total loans 90 days or more past due  282   18 
Total non-performing loans  19,362   11,130 
Other real estate owned  —   — 
Other non-performing assets  —   — 
Total non-performing assets $19,362  $11,130 
       
Ratios:      
Total non-performing loans to total loans  0.98%  0.57%
Total non-performing loans to total assets  0.71%  0.42%
Total non-performing assets to total assets  0.71%  0.42%
Net-charge-offs to total loans, YTD  0.02%  0.29%



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Source: Orange County Bancorp Inc.
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