OBT Stock Forecast & Price Target

Orange County Bancorp has demonstrated a positive financial trajectory, with tangible book value per share (TBVPS) increasing by $1.30 to $18.45, reflecting an 8% sequential growth. The company has effectively strengthened its capital levels through robust earnings and a recent capital raise, positioning itself for future growth. While nonperforming loans have increased to $11.7 million, accounting for 0.61% of total loans, this remains a competitive ratio compared to industry peers, underscoring the bank's relatively stable asset quality.

Orange County Bancorp's core efficiency ratio improved slightly to 57% from 59% in the previous quarter; however, this modest improvement may not sufficiently bolster overall financial performance amid other concerning trends. Additionally, fees as a percentage of total revenues decreased to 15% from 16%, indicating potential challenges in generating non-interest income. Furthermore, the loan-to-deposit ratio of 84%, while slightly up from 81%, remains comparatively low, which may suggest inefficiencies in capital utilization and limited growth in lending activities.