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Get filing alertsOrange County Bancorp reports record Q2 earnings of $13.7M, up 31% on margin expansion
Filed July 28, 2026 · Period ending July 28, 2026 · ~1 min read
Key Changes
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high
Net income rose 30.6% to $13.7M ($1.02/share) from $10.5M ($0.87/share) in Q2 2025, driven by net interest margin expansion to 4.44% and a one-time $5.3M deferred tax valuation allowance reversal.
Exhibit 99.1 view on EDGAR → -
high
Net interest margin expanded 38 basis points to 4.44% from 4.06% year-over-year, as average deposit costs fell 35 basis points to 0.96% while loan yields rose 3 basis points to 6.03%.
Exhibit 99.1 view on EDGAR → -
high
Deposits grew $120.8M to $2.4B, with $104.4M growth in savings and money market accounts offsetting a $123.0M reduction in higher-cost brokered certificates of deposit.
Exhibit 99.1 view on EDGAR → -
high
The company reversed a deferred tax valuation allowance, recognizing a one-time $5.3M benefit based on sustained profitability and financial strength demonstrating likelihood of realizing the deferred tax asset.
Exhibit 99.1 view on EDGAR → -
medium
Transferred $68.4M in residential real estate and home equity loans to held-for-sale status, recording a $4.8M valuation loss that reduced noninterest income for the quarter.
Exhibit 99.1 view on EDGAR →
Summary
Orange County Bancorp delivered record second-quarter earnings of $13.7 million, up 30.6% from the prior year, with earnings per share rising 17.2% to $1.02. The performance was driven by strong net interest margin expansion to 4.44% from 4.06%, reflecting the bank's success in reducing deposit costs by 35 basis points to 0.96% while maintaining loan yield growth.
A one-time $5.3 million deferred tax valuation allowance reversal added significantly to earnings, based on the bank's sustained profitability track record. The bank's funding mix improved materially, with $120.8 million in total deposit growth driven by $104.4 million in savings and money market accounts.
Management reduced reliance on higher-cost brokered certificates of deposit by $123.0 million, replacing them with lower-cost core deposits that now represent 52.8% of the deposit base. A $4.8 million valuation loss on $68.4 million of loans transferred to held-for-sale status (primarily residential real estate and home equity) partially offset the quarter's strong operating performance. The margin expansion and deposit mix shift demonstrate effective liability management in a competitive rate environment, while the tax reversal provides a one-time boost to book value.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR → · paraphrased
Net income for the second quarter of 2026 was $13.7 million, an increase of $3.2 million, or 30.6%, from net income of $10.5 million for the second quarter of 2025. ... Earnings per share increased $0.15 per share, or 17.2%, to $1.02 per share for the quarter ended June 30, 2026 from $0.87 per share for the quarter ended June 30, 2025
The company reported record second quarter net income of $13.7 million, up 30.6% year-over-year, with earnings per share rising 17.2% to $1.02. The increase was driven by higher net interest income, a one-time $5.3 million deferred tax valuation allowance reversal, and reduced provision for credit losses, partially offset by a $4.8 million valuation loss on loans held-for-sale.
Added in current filing · view on EDGAR →
Total deposits increased $120.8 million, to $2.4 billion at June 30, 2026 from $2.3 billion at December 31, 2025. The increase was due primarily to $104.4 million, or 10.4%, of growth in savings and money market accounts which totaled approximately $1.1 billion at June 30, 2026 as compared to $1.0 billion at December 31, 2025. ... The increase in deposits was partially offset by certificates of deposit which represented a $123.0 million decrease as the increased deposit levels of transaction accounts provided for run-off of maturing brokered deposits during the period.
Total deposits grew $120.8 million to $2.4 billion, driven by $104.4 million growth in savings and money market accounts and increases in both interest-bearing and noninterest-bearing demand deposits. The bank reduced brokered certificates of deposit by $123.0 million, replacing higher-cost funding with lower-cost core deposits. Core deposits (demand and NOW accounts) represented 52.8% of total deposits at quarter-end.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 29, 2026 · How we verify