Orange County Bancorp, Inc. (OTCQX: OBT) posted record first‑quarter 2026 results, reporting net income of $11.3 million and earnings per share of $0.85—an increase of 29.6% from the $8.7 million and $0.63 EPS reported in Q1 2025. Revenue for the quarter was $32.1 million, slightly below the consensus estimate of $32.35 million, but the company still delivered a 13.4% rise in net interest income to $27.9 million, driven by a 45‑basis‑point expansion of its net interest margin to 4.40% from 3.95% in the prior year.
Total loans grew modestly by $1.7 million to $2.0 billion, while deposits expanded $39.4 million to $2.4 billion, underscoring the strength of the bank’s low‑cost deposit franchise. Book value per share climbed to $21.75 from $21.27, and tangible book value per share rose to $21.32 from $20.83. The provision for credit losses swung to a $436 thousand recovery, compared with a $202 thousand expense in Q1 2025, reflecting improved asset quality.
The EPS beat of $0.07 per share—about 9% above analyst expectations—was largely attributable to disciplined cost control and the margin expansion. The 45‑basis‑point lift in net interest margin, combined with the deposit growth, increased net interest income, while operating expenses remained largely flat, allowing earnings to rise despite a modest revenue miss. The slight revenue shortfall of roughly $0.25 million was driven by a decline in fee income, which offset the gains from higher loan yields.
Market reaction was positive, with OBT shares rising about 2.5% in after‑hours trading. Investors responded to the EPS beat and the record net income, while the margin expansion and deposit growth reinforced confidence in the bank’s pricing power and balance‑sheet discipline.
CEO Michael Gilfeather highlighted the record earnings and credited the growth of low‑cost deposits and margin strength as key drivers of the quarter’s performance. He noted that the bank’s disciplined underwriting and pricing strategy helped maintain profitability amid a challenging macroeconomic environment.
The bank also reported an increase in nonperforming loans, primarily due to a commercial‑real‑estate participation loan, signaling a modest headwind that management is monitoring closely. Overall, the results reinforce OBT’s competitive position and suggest continued resilience in its core banking operations.
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