Orange County Bancorp (OBT) investor relations material

Executive summary

• Net income rose 29.6% year-over-year to $11.3 million for Q1 2026, driven by higher net interest income and lower provision for credit losses, partially offset by increased noninterest expense.

• Net interest margin improved to 4.40%, up 45 basis points from the prior year, reflecting higher lending rates and lower deposit costs.

• Total assets increased 1.7% to $2.7 billion from December 31, 2025, with growth in cash and loans offset by a decline in investment securities.

• Total deposits grew 1.7% to $2.4 billion, primarily from core deposits, reducing reliance on brokered deposits.

• Book value per share increased 2.3% to $21.75, and tangible book value per share rose 2.4% to $21.32 since year-end 2025.

Financial highlights

• Net interest income grew 18.1% to $27.9 million, with net interest margin improving to 4.40% from 3.95% year-over-year.

• Interest expense declined 21.3% to $6.5 million, reflecting reduced borrowings and lower-cost deposits.

• Noninterest income decreased 4.1% to $4.2 million, mainly due to lower wealth management and investment advisory fees.

• Noninterest expense increased 8.7% to $17.9 million, mainly from higher salaries, benefits, professional fees, and IT investments.

• Provision for credit losses was a net recovery of $436 thousand, compared to a $202 thousand provision in Q1 2025.

Outlook and guidance

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

• Interest rate environment and competition may impact net interest income and margin in 2026.

• Focus continues on growing organically sourced deposits and leveraging synergies between banking and wealth management.

• Management remains optimistic about future opportunities, citing a strong business model and ability to navigate macroeconomic challenges.