CORRECTED-Orange County Bancorp Q2 net income rises 31% to record, boosted by tax benefit

Corrects Net Interest Income to $28.4 mln, from $3.3 mln, in table

Overview

• US regional bank's Q2 net income rose 31% to record $13.7 mln

• Q2 EPS climbed 17% to $1.02, driven by higher net interest income and tax benefit

• Net interest margin rose to 4.44% from 4.06% on lower deposit costs

Outlook

• Orange County Bancorp anticipates loan growth to return to more normal levels

• Wealth Management division appears to be stabilizing after earlier staff changes

Result Drivers

• NET INTEREST INCOME - Higher loan yields and reduced deposit costs drove net interest income growth

• TAX BENEFIT - One-time reversal of deferred tax valuation allowance boosted net income

• CREDIT LOSS RECOVERY - Net recovery in provision for credit losses due to slower loan growth and improved portfolio

• NON-INTEREST INCOME DECLINE - Valuation loss on loans held-for-sale and absence of prior-year gains weighed on non-interest income

Company press release: ID:nGNX6DStHb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Orange County Bancorp Inc is $39.50, about 4.8% above its July 27 closing price of $37.68

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

• July 27 - German American Bancorp Q2 net income rises 21% to record high

• July 28 - CF Bankshares Q2 net income rises, sees core earnings to grow in H2 2026

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)