Orange County Bancorp (OBT) investor relations material

Executive summary

• Achieved record first quarter net income of $11.3 million, up 29.6% year-over-year, driven by higher net interest income and lower provision for credit losses, partially offset by increased noninterest expense.

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

• Total deposits grew 1.7% to $2.4 billion, with growth sourced 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 increased 18.1% to $27.9 million, with total interest income up 8.0% and interest expense down 21.7%.

• Provision for credit losses reflected a net recovery of $436 thousand, compared to an expense of $202 thousand a year ago.

• Noninterest income decreased 4.1% to $4.2 million, mainly due to lower investment advisory income and BOLI proceeds.

• Noninterest expense rose 8.7% to $17.9 million, reflecting investments in compensation, occupancy, and IT.

• Efficiency ratio improved to 55.9% from 58.9% year-over-year.

• Effective tax rate was 22.7%, slightly down from 22.9% last year.

Outlook and guidance

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

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