OBT · Orange County Bancorp, Inc.

Orange County Bancorp delivered record first quarter 2026 earnings with net income of $11.3 million, a 29.6% increase from $8.7 million in Q1 2025, primarily fueled by an 18.1% rise in net interest income to $27.9 million. This growth stemmed from higher loan interest and fees (up 9.1%) and a sharp $1.8 million drop in interest expense, driven by reduced FHLB borrowings and lower deposit costs averaging 1.03%, down 26 bps year-over-year. Net interest margin expanded significantly to 4.40%, benefiting from higher lending yields at 6.18% and quarter-end loan repayments. A net recovery in provision for credit losses of $436 thousand, versus a $202 thousand expense last year, further boosted results amid slower loan growth and favorable CECL modeling. Non-interest income dipped 4.1% to $4.2 million due to lower investment advisory fees and absence of prior-year BOLI proceeds, while non-interest expense rose 8.7% to $17.9 million from investments in compensation, occupancy, IT, and professional fees; efficiency ratio improved to 55.9%. Balance sheet remained stable with assets at $2.7 billion, deposits up 1.7% to $2.4 billion (51.1% in demand deposits), loans flat at $2.0 billion, and cash surging 26.1% to $257.5 million. Wealth Management saw AUM decline 13% to $1.6 billion from market volatility, with income down 5%. CEO Michael Gilfeather highlighted low-cost deposit growth and NIM strength amid challenges, expressing optimism in the regional bank model. Capital ratios exceeded well-capitalized thresholds, with Tier 1 leverage at 12.80%.