Orange County Bancorp (OBT) investor relations material

Executive summary

• Achieved record net income of $13.7 million for Q2 2026, up 30.6% year-over-year, and $24.9 million for the first half, up 30.1% year-over-year.

• 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 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.

Financial highlights

• Net interest income increased 13.1% year-over-year to $28.4 million for Q2 2026; net interest margin expanded 38 bps to 4.44%.

• Total deposits grew 5.2% to $2.4 billion since December 2025, with core deposits driving lower funding costs.

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

• Noninterest income declined to a loss of $607 thousand due to a $4.8 million valuation loss on loans held-for-sale and absence of prior-year one-time gains.

• Noninterest expense rose 3.1% to $17.3 million, reflecting investments in growth and higher compensation.

Outlook and guidance

• 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.

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