Orange County Bancorp (OBT) investor relations material

Executive summary

• Net income for Q2 2026 was $13.7 million, up 30.6% year-over-year; six-month net income was $24.9 million, up 30.1% from the prior year.

• Total assets reached $2.8 billion at June 30, 2026, up 5.3% from December 31, 2025, driven by higher cash balances and loans held-for-sale, despite a decrease in loans and investment securities.

• Earnings per share rose 17.2% to $1.02 for Q2 2026; book value per share increased 7.5% to $22.87 since year-end 2025.

• Growth was driven by higher net interest income, lower provision for credit losses, and a one-time deferred tax valuation allowance reversal, partially offset by a valuation loss on loans held-for-sale.

• Deposit growth remained strong, with total deposits increasing 5.2% to $2.4 billion, supporting liquidity and funding needs.

Financial highlights

• Net interest income rose 13.1% year-over-year to $28.4 million for Q2 and 15.5% to $56.3 million for the six months, driven by higher loan balances and improved net interest margin.

• Net interest margin increased to 4.44% in Q2 2026 from 4.06% in Q2 2025; net interest rate spread improved to 3.87%.

• Noninterest income declined sharply due to a $4.8 million valuation loss on loans held-for-sale and absence of prior year one-time gains.

• Noninterest expense increased 3.1% year-over-year in Q2, reflecting higher salaries, benefits, and professional fees.

• Total loans, including held-for-sale, reached $2.0 billion, up 1.5% since year-end 2025.

Outlook and guidance

• Management expects continued deposit growth and stable liquidity, with sufficient funds to meet current funding commitments.

• Management anticipates normalization of loan growth as the new loan pipeline remains robust despite recent elevated payoffs.

• Continued focus on growing low-cost, organically sourced deposits to maintain competitive funding advantage.

• The company remains focused on credit quality and prudent risk management amid competitive and economic pressures.

• Wealth Management division expected to stabilize after staff changes and AUM decline.