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MIDDLETOWN, NY - Orange County Bancorp (NASDAQ:ICBK), Inc. (NASDAQ:OBT), announced a cash dividend of $0.23 per share on its common stock, as declared by its Board of Directors. The dividend is payable on September 16, 2024, to shareholders of record as of September 4, 2024.
The company, which is the parent of Orange Bank & Trust Company and Hudson (NYSE:HUD) Valley Investment Advisors, Inc., has a history stretching back over 125 years and currently reports approximately $2.5 billion in total assets. Orange Bank & Trust Company was established by 14 founders and has grown through its dedication to the community and business clients. Hudson Valley Investment Advisors, Inc., a Registered Investment Advisor based in Goshen, NY, was founded in 1996 and joined the Orange County Bancorp family in 2012.
This dividend announcement follows the company's tradition of returning value to its shareholders and reflects its financial health and commitment to its investors. The declaration of a dividend is a sign of a company's stability and confidence in its financial position, which can be a positive signal to the market.
Shareholders looking forward to the dividend payment next month must be recorded by the company by the beginning of September. The news of the dividend comes directly from a recent press release issued by Orange County Bancorp, Inc.
In other recent news, Orange County Bancorp, Inc. has made significant changes to its director stock ownership rules. The bank recently amended its bylaws, requiring directors to hold shares of the company's capital stock with a minimum fair market value of $1,000. This rule, which aligns with the National Bank Act's guidelines, is a departure from the amendments made in 2022 and 2023, which mandated directors to own $125,000 of the company's common stock. The latest amendment simplifies the stock ownership requirement, setting a clear baseline for directors' investment in the company. It is important to note that the Stock Ownership Guidelines remain in place, working alongside the requirements stipulated in the bylaws. This move reflects Orange County Bancorp's commitment to aligning the interests of its directors with those of its shareholders, reinforcing good governance practices. The revised bylaws, along with the texts of the previous amendments, have been filed with the SEC and are now part of the company's Form 8-K exhibits.
InvestingPro Insights
Orange County Bancorp, Inc. (NASDAQ:OBT) continues to demonstrate its commitment to shareholder returns, not only with its recent dividend declaration but also by maintaining a consistent dividend payout for 17 consecutive years, showcasing the company's stability and reliability. This is underscored by the company's significant return over the last week, with a price total return of 8.27%, reflecting a positive short-term investor sentiment.
The company's financial health is further highlighted by its attractive valuation metrics. OBT is currently trading at a P/E ratio of 9.35, which suggests that the stock could be undervalued relative to its near-term earnings growth, with an even lower adjusted P/E ratio over the last twelve months as of Q2 2024 at 8.92. This is complemented by a PEG ratio of 0.5 during the same period, indicating that the stock may be a compelling choice for value investors looking for growth at a reasonable price.
While the company has shown weak gross profit margins, it has managed to generate a solid operating income margin of 44.42% over the last twelve months as of Q2 2024. This points to effective cost management and operational efficiency that could support future profitability, as anticipated by analysts who predict the company will be profitable this year.
For investors seeking more insights, InvestingPro offers additional tips on Orange County Bancorp, Inc. to help make informed decisions. There are currently 8 additional InvestingPro Tips available, which can be found at: https://www.investing.com/pro/OBT. These tips provide deeper analysis and context to the company's financials and market performance, aiding investors in their assessment of OBT's investment potential.
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