Orange County Bancorp Extends Record Earnings Streak

The Tip Desk · November 9, 2026 · 3 min read

Net income rose 24.6% to $12.5 million, or $0.93 a share, as net interest income reached $29.9 million.

Orange County Bancorp, Inc. (OBT), parent of Orange Bank & Trust Co. and Orange Investment Advisors, reported record third-quarter earnings of $12.5 million, or $0.93 a share, up $2.5 million, or 24.6%, from $10.0 million, or $0.75 a share, a year earlier.

The Middletown, N.Y.-based company said the increase reflected higher net interest income, including lower borrowing costs from deposit growth, and a smaller provision for credit losses, partly offset by lower noninterest income after bank-owned life insurance income in the year-ago quarter.

Net interest income rose $2.9 million, or 11.0%, to $29.9 million in the three months ended September 30, 2026, from $27.0 million a year earlier. Interest income increased $1.7 million on loan interest and fees; interest expense fell $1.3 million as borrowing costs and brokered-deposit costs declined.

Net interest margin expanded 19 basis points, or 4.4%, to 4.45% from 4.26% a year earlier, after 38 bps of year-over-year expansion to 4.44% in the second quarter and 45 bps to 4.40% in the first quarter.

Total deposits increased $56.0 million, or 2.4%, to $2.4 billion at September 30, 2026, from $2.3 billion a year earlier. The company said much of the growth was core deposits, allowing it to reduce higher-cost brokered deposits and borrowings. Average cost of deposits was 0.96% for the quarter, comparable to the prior quarter and down 16 bps, or 14.6%, from 1.12% a year earlier.

Total loans, including loans held-for-sale, were $2.0 billion at September 30, 2026, a comparable level from December 31, 2025 and up from $1.9 billion a year earlier, after $31.2 million of loan growth during the period. Average loan yield was 6.19%, up 16 bps, or 2.7%, from 6.03% the prior quarter. The company said it plans to reduce residential loan exposure, with a goal of exiting those loans by year end.

The provision for credit losses was $809 thousand, down from $3.9 million a year earlier. The allowance for credit losses to loans was 1.38% at September 30, 2026, versus 1.51% a year earlier. Non-performing loans were $19.4 million, or 0.98% of total loans; non-accrual loans were $19.1 million versus $11.1 million at December 31, 2025, tied mainly to a commercial real estate participation loan that experienced payment disruption after a parent-company bankruptcy.

Non-interest income decreased $1.4 million, or 20.8%, to $5.4 million from $6.8 million a year earlier, primarily from $1.2 million of BOLI death-benefit income in the prior year and a $496 thousand drop in investment advisory income, partly offset by $941 thousand higher trust income. Trust and investment advisory income was $4.0 million, up $445 thousand, or 12.6%, from $3.5 million a year earlier. Wealth-management assets under management or advisory were $1.6 billion at September 30, 2026, down 13.0% from $1.9 billion at December 31, 2025.

Non-interest expense was $17.2 million, up $391 thousand, or 2.3%, from $16.8 million a year earlier. The efficiency ratio decreased to 48.8% from 49.9%.

The company said the quarter marked its third consecutive record earnings period in 2026. President and CEO Michael Gilfeather attributed the results to deposit and loan growth and further expansion in net interest margin.

The Bank’s Tier 1 capital-to-average-assets ratio was 13.19%, common equity and Tier 1 capital-to-risk-weighted-assets were 17.99%, and total-capital-to-risk-weighted-assets was 19.24% at September 30, 2026.