Orange County Bancorp Reports 30.6% Increase in Net Income for Q2 2026

Orange County Bancorp, Inc. reported a significant increase in financial performance for the second quarter of 2026, with net income rising to $13.7 million, a 30.6% increase from $10.5 million in the same period last year. For the first half of 2026, net income reached $24.9 million, up from $19.2 million in the prior year. The growth was primarily driven by a $3.3 million increase in net interest income, which totaled $28.4 million for the quarter, reflecting a 13.1% increase year-over-year. The bank's net interest margin also improved, rising to 4.44% from 4.06% in the previous year, aided by a decrease in interest expense.

Total assets for Orange County Bancorp increased by 5.3% to $2.8 billion as of June 30, 2026, compared to $2.7 billion at the end of 2025. This growth was largely attributed to a $130.7 million increase in cash and due from banks, alongside a $63.6 million addition in loans held-for-sale. However, total loans decreased by $38 million to $1.9 billion, primarily due to the transfer of loans to held-for-sale status and a decline in commercial and industrial loans. The bank's loan portfolio remains diversified, with commercial real estate loans continuing to represent a significant portion.

In terms of operational metrics, total deposits rose by 5.2% to $2.4 billion, driven by a $68.3 million increase in non-interest-bearing demand deposits. The bank's focus on growing commercial transaction accounts contributed to this increase, while certificates of deposit saw a notable decline due to non-renewals. The bank's employee headcount remained stable, supporting its operational capabilities across its 16 locations in New York.

The bank's allowance for credit losses decreased to $26.3 million, or 1.38% of total loans, down from $28.4 million at the end of 2025. This reduction was attributed to slower loan growth and lower reserves associated with the composition of loans. Non-performing loans increased to $22.2 million, primarily driven by issues within the commercial real estate segment, although management continues to focus on maintaining credit quality.

Looking ahead, Orange County Bancorp remains optimistic about its growth trajectory, emphasizing its commitment to expanding its market presence and enhancing its product offerings. The bank's management is focused on leveraging its strong liquidity position and capital resources to navigate potential economic challenges while continuing to serve its customer base effectively.