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Orange County Bancorp Rewards Shareholders With 8.7% Dividend Hike

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Orange County Bancorp, Inc. (OBT - Free Report) announced a cash dividend of 25 cents per share, an increase of 8.7% from the prior payout. The dividend will be paid out on Dec. 16, 2024, to shareholders of record as of Dec. 4, 2024. 

Prior to this, the company increased its dividend by 15% to 23 cents per share in November 2022. It has a five-year annualized dividend growth of 5.75%. At present, its payout ratio is 18% of its earnings.

Based on its closing price of $59.38 as of Nov. 25, 2024, OBT’s current dividend yield is 1.55%.

Orange County Bancorp, Inc. Dividend Yield (TTM)

 

Orange County Bancorp’s Liquidity Position

OBT enjoys a decent balance sheet position. As of Sept. 30, 2024, cash and due from banks were $160.9 million, while short and long-term borrowings were $92 million. Total loans were $1.8 billion and total deposits were $2.1 billion.

At the end of Sept. 30, 2024, the bank maintained capital ratios above regulatory standards for well-capitalized institutions. The bank’s Tier 1 capital to average assets ratio was 10.06%, both common equity and Tier 1 capital to risk-weighted assets were 13.64%, and total capital to risk-weighted assets was 14.89%.

Our Take on OBT

Orange County Bancorp’s dividend increase reflects its strong financial health and commitment to enhancing shareholders' value. The decision to raise the dividend is based on the company's performance and initiatives that have contributed to its growth and stability.

Given its decent capital and liquidity positions, OBT is expected to sustain its current capital distribution activities and enhance shareholder value.

OBT’s Zacks Rank & Price Performance

Shares of Orange County Bancorp have risen 25.3% compared with the industry’s growth of 33.1% over the past six months.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

OBT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend Hikes by Other Banks

Earlier this month, First National Corporation (FXNC - Free Report) hiked its quarterly cash dividend by 3.3% to 15.5 cents per share. The dividend will be paid out on Dec. 13, 2024, to shareholders of record as of Nov. 29.

FXNC raised its dividend consecutively in the last 10 years. The bank had increased its dividend 7.1% to 15 cents per share in February 2023. It has a dividend payout ratio of 48%.

Similarly, Zions Bancorporation (ZION - Free Report) hiked its quarterly cash dividend by 4.9% to 43 cents per share. The dividend will be paid out on Nov. 21, 2024, to shareholders of record as of Nov. 15.

Before this, ZION increased its dividend by 7.9% to 41 cents per share in July 2022. The bank has increased its dividend thrice in the last five years, with a dividend payout ratio of 33%.


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