Orange County Bancorp posted record second-quarter net income of $13.7 million ($1.02 per share) for the quarter ended June 30, 2026, up from $10.5 million a year earlier. Net interest margin expanded to 4.44% and total deposits grew to $2.43 billion at quarter end. The company cited a reversal of a deferred tax valuation allowance and a valuation loss on loans held-for-sale as material items affecting results.

Financial Highlights

  • Net income: $13.7 million for Q2 2026, up $3.2 million (30.6%) from Q2 2025; six-month net income $24.9 million.
  • Earnings per share: $1.02 basic and diluted for Q2 2026, compared with $0.87 for Q2 2025; six-month EPS $1.87.
  • Net interest margin: 4.44% for the three months ended June 30, 2026, up 38 basis points from 4.06% in Q2 2025.
  • Total deposits: $2.431 billion at June 30, 2026, an increase of $120.8 million (5.2%) from December 31, 2025.
  • Net income impact items: $5.3 million deferred tax valuation allowance reversal increased earnings; $4.8 million valuation loss on loans held-for-sale reduced non-interest income.

Business Highlights

  • Total loans, including loans held-for-sale, remained about $2.0 billion at June 30, 2026; loan composition shifted with growth in commercial real estate and construction and reductions in commercial and industrial balances.
  • Loan payoffs accelerated in H1 2026 with $81.1 million of prepayments versus $28.5 million a year earlier, affecting loan growth trajectory and increasing cash balances.
  • Core deposit growth drove a reduction in higher-cost brokered deposits and borrowings; average cost of deposits for Q2 2026 declined to 0.96%.
  • Wealth Management AUM/advisory stabilized at $1.7 billion at June 30, 2026 following prior year restructuring; trust and advisory income totaled $3.2 million for the quarter.
  • Liquidity and capital positions strong: cash and due from banks rose to $334.9 million; Bank-level capital ratios remain well above regulatory well-capitalized thresholds.

Original SEC Filing:

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