Orange County Bancorp, Inc. Adjusts Stock Split Record Date as US Markets Close on January 9 in Honor of National Day of Mourning for Former President Jimmy Carter

Rhea-AI Summary

Orange County Bancorp (Nasdaq: OBT) has adjusted the record date for its previously announced two-for-one forward stock split to January 8, 2025, due to U.S. markets closing on January 9 in observance of former President Jimmy Carter's passing. Record holders of common stock will receive one additional share after market close on January 10, 2025, with split-adjusted trading beginning on January 13, 2025.

The split will be implemented through an amendment to the Company's Certificate of Incorporation, increasing the total outstanding shares from approximately 5.7 million to 11.4 million. The stock's par value will be reduced from $0.50 to $0.25 per share.

Positive

• Stock split will improve stock liquidity and potentially make shares more accessible to retail investors
• Total market capitalization remains unchanged, preserving shareholder value

Negative

• None.

Insights

Financial Markets Analyst

The announced stock split adjustment for Orange County Bancorp is a technical formality that warrants attention primarily for administrative purposes. The 2:1 split will effectively double the outstanding shares from 5.7 million to 11.4 million while halving the par value from $0.50 to $0.25. While stock splits don't fundamentally change company value, they can enhance stock liquidity and make shares more accessible to retail investors. The shift in record date to January 8 due to market closure is purely procedural. For existing shareholders, positions will automatically adjust, with trading on split-adjusted basis commencing January 13. The split may attract increased retail participation due to the lower nominal share price, though the actual market impact tends to be minimal in regional banks of this size ($301.5M market cap). The timing change maintains regulatory compliance while ensuring proper settlement mechanics in light of the unexpected market closure.

Corporate Actions Specialist

The mechanical aspects of this stock split implementation reflect standard corporate action procedures with precise attention to settlement cycles. The adjustment of the record date to January 8 demonstrates proper consideration of T+1 settlement requirements and DTC processing timelines. The par value reduction maintains proper accounting alignment while the authorized share increase provides future capital flexibility.

For retail investors unfamiliar with splits: imagine having a $10 bill and exchanging it for two $5 bills - same total value, just divided differently. Similarly, if you own 100 shares before the split, you'll own 200 shares after, but the price per share will be halved. The split itself is neither positive nor negative but rather a neutral technical adjustment that may improve trading dynamics through increased share count and lower nominal price points.

MIDDLETOWN, N.Y., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Co. and Hudson Valley Investment Advisors, Inc., today announced that the record date of its previously declared two-for-one forward stock split (the “Stock Split”) of the Company’s common stock will be Wednesday, January 8, 2025 as a result of U.S. equity markets closing on January 9, 2025 to observe and honor the passing of former President Jimmy Carter. Each record holder of common stock on Wednesday, January 8, 2025 will receive one additional share of common stock after the market close on Friday, January 10, 2025. Trading is expected to commence on a split-adjusted basis at market open on Monday, January 13, 2025.

The Stock Split will be effectuated by the filing of an amendment to the Company’s Certificate of Incorporation and will result in a proportionate increase in the number of shares of authorized common stock. The Company anticipates that the outstanding shares of common stock after the Stock Split will increase from approximately 5.7 million shares to 11.4 million shares. The par value per share of the Company’s common stock will be reduced from $0.50 par value to $0.25 par value.

About Orange County Bancorp, Inc

Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.5 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

Forward-Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic

environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

For further information:
Michael Lesler
EVP & Chief Financial Officer
mlesler@orangebanktrust.com
Phone: (845) 341-5111

FAQ

When is the record date for Orange County Bancorp's (OBT) stock split in 2025?

The record date for OBT's two-for-one stock split is Wednesday, January 8, 2025.

When will OBT's split-adjusted shares begin trading?

OBT's split-adjusted shares will begin trading on Monday, January 13, 2025.

How many shares will OBT have outstanding after the stock split?

OBT will have approximately 11.4 million shares outstanding after the stock split, up from 5.7 million shares.

What will be the new par value of OBT shares after the stock split?

The par value of OBT shares will be reduced from $0.50 to $0.25 per share after the stock split.

How many additional shares will OBT shareholders receive in the stock split?

OBT shareholders will receive one additional share for each share held as of the January 8, 2025 record date.