Orange County Bancorp Q2 net income rises 31% to record, boosted by tax benefit
OBT•Drivers and analyst context
- Net interest income: Higher loan yields and reduced deposit costs drove net interest income growth.
- Tax benefit: A one-time reversal of a deferred tax valuation allowance boosted net income.
- Credit loss recovery: Net recovery in provision for credit losses reflected slower loan growth and an improved portfolio.
- Non-interest income decline: A valuation loss on loans held-for-sale and the absence of prior-year gains weighed on non-interest income.
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, versus a P/E of 9 three months ago.
Outlook points to more normal loan growth
The company said it anticipates loan growth to return to more normal levels.
Its wealth management division appears to be stabilizing after earlier staff changes.
