Orange County Bancorp Dividend Signals Stability and Regional Growth

MIDDLETOWN, NY – February 20, 2026 – Orange County Bancorp, Inc. (Nasdaq: OBT), the parent company of Orange Bank & Trust Company, today declared a quarterly cash dividend of $0.18 per share. The move, coming on the heels of a record-breaking fiscal year, underscores the institution's robust financial health and its steadfast commitment to delivering shareholder value.

The dividend will be paid on March 16, 2026, to shareholders of record as of the close of business on March 4, 2026. While a routine announcement on the surface, this payout is a potent symbol of the bank's successful strategy, rooted in deep community ties and disciplined financial management.

A Pattern of Profitability and Shareholder Returns

The decision to issue the dividend is backed by exceptionally strong financial performance. Orange County Bancorp recently announced record earnings for the fiscal year ending December 31, 2025, with net income soaring to $41.6 million, a remarkable 49.3% increase from the $27.9 million reported in 2024. This translated into diluted earnings per share of $3.33, up significantly from $2.47 the previous year and comfortably beating analyst expectations.

This profitability is not a fleeting success. The bank has cultivated a consistent history of rewarding its investors, having paid dividends since 2001 and increasing them for four consecutive years. The company's dividend growth rate over the past three years stands at an impressive 16%, placing it in the top tier of its peers. Critically for long-term investors, the bank’s dividend payout ratio is approximately 17.13%. This low ratio indicates that the dividend is well-covered by earnings and is not only sustainable but also leaves substantial capital for reinvestment and future growth.

Market sentiment has reflected this positive trajectory. OBT's stock has performed well, hitting a 52-week high of $36.43 earlier this year. Analyst ratings have been correspondingly positive, with some rating the stock a "Buy" and setting price targets that suggest further upside. Investors see the bank's combination of strategic growth, solid financial performance, and consistent dividend increases as a compelling value proposition.

Thriving on Main Street, Not Just Wall Street

Orange County Bancorp's success is inextricably linked to the economic vitality of its home region. The bank, which has served its community for over 125 years, operates in a dynamic and growing environment in New York's Hudson Valley. The economic health of Orange County provides a fertile ground for the bank's loan and deposit growth.

The county's population has expanded by over 12% since 2010, and its median household income saw a healthy 5.11% increase in 2023 to $96,497. Paired with a low unemployment rate of 3.80% as of late 2025, the region paints a picture of stable prosperity. This economic strength fuels demand for the banking services that are OBT's bread and butter.

Furthermore, the region is actively investing in its future. Major economic development initiatives are underway, including a $25.48 million state investment to create the "Switchyard Terminal for Economic and Advanced Manufacturing Rail & Business Park," a project projected to create up to 1,500 jobs. The area is also becoming a hub for the film and television industry, with new studio construction underway. These forward-looking projects signal a diversified and resilient local economy, providing a steady stream of business and personal banking clients for the institution.

The county's own fiscal discipline, evidenced by an AA+ bond rating from S&P Global Ratings and a decreasing property tax rate, further solidifies the stable operating environment that allows a community-focused bank to flourish.

The Regional Bank Advantage in a Competitive Market

In a financial landscape often dominated by national behemoths, regional banks like Orange County Bancorp offer a distinct investment thesis. With an annual dividend of $0.72 per share, OBT's current yield of approximately 2.08% is competitive within its sector. While some larger banks may offer a higher absolute yield, OBT’s strength lies in the sustainability and growth of its payout, backed by a low payout ratio and strong fundamentals.

This contrasts with the volatility seen elsewhere in the banking sector, where some institutions have had to slash dividends. OBT's focused strategy has allowed it to expand its net interest margin (NIM) to 4.18% for 2025, a significant increase driven by impressive growth in both loans and deposits. Total loans grew by 7.4% to $2.0 billion, while total deposits rose 7.3% to $2.3 billion, with much of that growth coming from valuable non-interest-bearing accounts.

This performance is a direct result of what the company's leadership calls its "regional bank strategy." By concentrating on its core markets, maintaining disciplined expense management, and building strong client relationships, the bank avoids the risks of overextension while capitalizing on its local expertise. This model also extends to its wealth management division, Orange Investment Advisors, which saw assets under management grow to $1.9 billion, contributing significantly to non-interest income. This balance of growth and stability continues to define the bank's appeal to its community and its investors alike.