Auburn National Bancorporation, Inc. Reports Second Quarter Net Earnings
Rhea-AI Summary
Auburn National Bancorporation (Nasdaq: AUBN) reported second quarter 2026 net earnings of $2.3 million, or $0.66 per share, up from $1.8 million, or $0.52 per share, in 2Q 2025, a 27% increase in earnings per share. Net earnings for the first six months of 2026 were $4.5 million, or $1.29 per share, versus $3.4 million, or $0.96 per share, a year earlier.
Tax-equivalent net interest income rose to $8.0 million, with net interest margin improving to 3.33%. The company recorded a negative provision for credit losses of $248 thousand and reported nonperforming assets at 0.01% of total assets. Total assets reached $1.1 billion and deposits were $988.3 million at June 30, 2026. Stockholders’ equity was $93.9 million, or $26.91 per share, and the bank remained well capitalized, while paying a $0.27 per share quarterly dividend.
Positive
- Earnings per share up 27% YoY to $0.66 in 2Q 2026
- Net earnings for first six months 2026 $4.5M vs. $3.4M in 2025
- Tax-equivalent net interest income 2Q 2026 $8.0M vs. $7.4M in 2Q 2025
- Net interest margin improved to 3.33% from 3.18% YoY
- Nonperforming assets reduced to 0.01% of total assets at June 30, 2026
- Allowance coverage 1.14% of loans and over 10,000% of nonperforming loans
Negative
- Noninterest expense rose to $6.1M, including $0.4M loss contingency accrual
- Equity-to-assets ratio declined to 8.67% from 9.06% at March 31, 2026
- Efficiency ratio elevated at 68.80%, higher than 67.63% in prior quarter
News Explained
Second-quarter earnings include a $0.4 million loss-contingency accrual; insurance coverage remains unresolved while reciprocal deposits expanded the balance sheet.
Auburn National Bancorporation reported completed second-quarter results for the period ended
The release records that accrual in other noninterest expense rather than as an offsetting insurance recovery, making the earnings effect current while the potential reimbursement remains unresolved.
The company also refined its current expected credit losses calculation by creating a separate municipal-loan segment, which it says reduced the allowance for credit losses.
Balance-sheet growth included reciprocal deposits of
News Market Reaction – AUBN
In the Jul 28 session, AUBN gained 0.19%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | quarterly dividend | Positive | -1.2% | Second-quarter dividend declaration preceded a negative 24-hour price reaction. |
| Mar 26 | director election | Neutral | +4.4% | Company expanded its boards to 12 members and elected Jeff Evans. |
| Mar 17 | stock repurchase | Positive | +5.3% | Board authorized up to $5 million of common-stock repurchases through March 15, 2027. |
| Feb 10 | quarterly dividend | Positive | +1.5% | Quarterly cash dividend declaration preceded a positive 24-hour price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The record was mixed: AUBN rose 5.29% after a repurchase authorization but declined 1.17% after a dividend declaration.
Key Terms
net interest margin financial
tax-equivalent financial
cecl financial
non-gaap financial
available-for-sale financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 vs. Second Quarter 2025 Highlights:
- Earnings per share increased
27% - Net interest income (tax-equivalent) increased
8% - Net interest margin (tax-equivalent) increased 15 basis points to
3.33% - Negative provision for credit losses of
$248 thousand , compared to a charge for provision for credit losses of$113 thousand in 2Q 2025 - Return on assets (annualized) improved to
0.90% , compared to0.74% in 2Q 2025 - Nonperforming assets decreased to
0.01% of total assets
AUBURN, Ala., July 28, 2026 (GLOBE NEWSWIRE) -- Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of
"Our second quarter results reflect strong revenue growth, improved profitability, and continued expansion of our net interest margin," said David A. Hedges, President and CEO. "Earnings per share increased
Net interest income (tax-equivalent) was
Net interest margin (tax-equivalent) was
Nonperforming assets were
Net recoveries were
At June 30, 2026, the Company’s allowance for credit losses was
The Company recorded a negative provision for credit losses of
Noninterest income was
Noninterest expense was
The provision for income tax expense was
The effective tax rate for the second quarter of 2026 was
Total assets were
At June 30, 2026, the Company’s stockholders’ equity was
The Company paid cash dividends of
About Auburn National Bancorporation, Inc.
Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total assets of approximately
Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements with respect to our objectives, expectations, anticipations, estimates and intentions and all statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “designed,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “seek” and other similar words and expressions of the future. Forward looking statements, include, without limitation, statements about future financial and operating results, costs and revenues, government policies and changes in policies, including Federal Reserve monetary and regulatory actions. Forward looking statements also include statements about economic conditions generally in our markets and which may affect us, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income or tax credits) and our mix and cost of deposits and wholesale liabilities, net interest income and margin, yields on earning assets, the market values and performance of securities held, effects of inflation and employment, including the effects of government fiscal and monetary policies.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements and/or financial condition of the Company or the Bank to be materially different from future results, performance, achievements or financial condition expressed or implied by such forward-looking statements. Forward looking statements may not be realized due to numerous factors, including, without limitation, changes in employment levels, actual and expected changes in interest rates and interest rate expectations (generally and those applicable to our assets and liabilities) and the shape of the yield curve, and related changes in our asset values, especially investment securities, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including possible adjustments to the fair values of securities available for sale, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends. You should not expect us to update any forward-looking statements.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those described in the “Cautionary Note Regarding Forward-Looking Statements” and the risks and uncertainties described under “Risk Factors” and elsewhere in our annual report on Form 10-K for the year ended December 31, 2025 and otherwise in our other SEC reports and filings.
Explanation of Certain Unaudited Non-GAAP Financial Measures
This press release contains financial information determined by methods other than U.S. generally accepted accounting principles (“GAAP”). The attached financial highlights include certain designated net interest income amounts presented on a tax-equivalent basis, a non-GAAP financial measure. Tax-equivalent net interest income is used in the calculation of our net interest margin and efficiency ratio. In the first quarter of 2026, we changed the presentation of net interest income on a tax-equivalent basis to account for tax-exempt interest income on municipal loans. Also, we reclassified average net unrealized gains (losses) on available-for-sale securities to average other assets so that average total securities are presented on an amortized cost basis in our calculation of net interest margin. Prior period amounts, including the presentation and calculation of our net interest margin and efficiency ratio, have been revised herein to conform with the current period presentation. These changes had no effect on the presentation of GAAP net interest income in current or prior periods.
Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes the presentation of net interest income on a tax-equivalent basis provides comparability of net interest income from both taxable and tax-exempt sources and facilitates comparability within the industry. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. Although the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. Along with the attached financial highlights, the Company provides reconciliations between the GAAP financial measures and these non-GAAP financial measures.
| Financial Highlights (unaudited) | ||||||||||||||||||||||||||
| Quarters Ended | Six months ended | |||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||
| Net interest income (a) | $ | 7,995 | $ | 7,832 | $ | 7,411 | $ | 15,827 | $ | 14,523 | ||||||||||||||||
| Less: tax-equivalent adjustment | 107 | 99 | 67 | 206 | 134 | |||||||||||||||||||||
| Net interest income (GAAP) | 7,888 | 7,733 | 7,344 | 15,621 | 14,389 | |||||||||||||||||||||
| Noninterest income | 878 | 893 | 789 | 1,771 | 1,536 | |||||||||||||||||||||
| Total revenue | 8,766 | 8,626 | 8,133 | 17,392 | 15,925 | |||||||||||||||||||||
| Provision for credit losses | (248 | ) | (76 | ) | 113 | (324 | ) | 103 | ||||||||||||||||||
| Noninterest expense | 6,105 | 5,901 | 5,702 | 12,006 | 11,582 | |||||||||||||||||||||
| Income tax expense | 611 | 603 | 485 | 1,214 | 877 | |||||||||||||||||||||
| Net earnings | $ | 2,298 | $ | 2,198 | $ | 1,833 | $ | 4,496 | $ | 3,363 | ||||||||||||||||
| Per share data: | ||||||||||||||||||||||||||
| Basic and diluted net earnings: | $ | 0.66 | $ | 0.63 | $ | 0.52 | $ | 1.29 | $ | 0.96 | ||||||||||||||||
| Cash dividends declared | $ | 0.27 | $ | 0.27 | $ | 0.27 | $ | 0.54 | $ | 0.54 | ||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 3,492,107 | 3,494,229 | 3,493,699 | 3,493,162 | 3,493,699 | |||||||||||||||||||||
| Diluted | 3,492,107 | 3,496,518 | 3,493,699 | 3,494,292 | 3,493,699 | |||||||||||||||||||||
| Shares outstanding, at period end | 3,487,830 | 3,495,866 | 3,493,699 | 3,487,830 | 3,493,699 | |||||||||||||||||||||
| Stockholders' equity (book value) | $ | 26.91 | 26.62 | 24.64 | 26.91 | 24.64 | ||||||||||||||||||||
| Common stock price: | ||||||||||||||||||||||||||
| High | $ | 28.88 | $ | 26.50 | $ | 25.28 | $ | 28.88 | $ | 25.28 | ||||||||||||||||
| Low | 23.03 | 21.01 | 19.48 | 21.01 | 19.48 | |||||||||||||||||||||
| Period-end: | 27.04 | 23.87 | 25.00 | 27.04 | 25.00 | |||||||||||||||||||||
| To earnings ratio (c) | 11.22 | x | 10.52 | x | 13.09 | x | 11.22 | x | 13.09 | x | ||||||||||||||||
| To book value | 100 | % | 90 | % | 101 | % | 100 | % | 101 | % | ||||||||||||||||
| Performance ratios: | ||||||||||||||||||||||||||
| Return on average equity (annualized) | 9.74 | % | 9.65 | % | 9.00 | % | 9.70 | % | 8.26 | % | ||||||||||||||||
| Return on average assets (annualized) | 0.90 | % | 0.86 | % | 0.74 | % | 0.88 | % | 0.68 | % | ||||||||||||||||
| Dividend payout ratio | 40.91 | % | 42.86 | % | 51.92 | % | 41.86 | % | 56.25 | % | ||||||||||||||||
| Other financial data: | ||||||||||||||||||||||||||
| Net interest margin (a) | 3.33 | % | 3.28 | % | 3.18 | % | 3.31 | % | 3.13 | % | ||||||||||||||||
| Effective income tax rate | 21.00 | % | 21.53 | % | 20.92 | % | 21.26 | % | 20.68 | % | ||||||||||||||||
| Efficiency ratio (b) | 68.80 | % | 67.63 | % | 69.54 | % | 68.22 | % | 72.12 | % | ||||||||||||||||
| Asset Quality: | ||||||||||||||||||||||||||
| Nonperforming assets: | ||||||||||||||||||||||||||
| Nonperforming (nonaccrual) loans | $ | 64 | $ | 102 | $ | 302 | $ | 64 | $ | 302 | ||||||||||||||||
| Total nonperforming assets | $ | 64 | $ | 102 | $ | 302 | $ | 64 | $ | 302 | ||||||||||||||||
| Net charge-offs (recoveries) | $ | (21 | ) | $ | 402 | $ | (48 | ) | $ | 381 | $ | 16 | ||||||||||||||
| Allowance for credit losses as a % of: | ||||||||||||||||||||||||||
| Loans | 1.14 | % | 1.16 | % | 1.24 | % | 1.14 | % | 1.24 | % | ||||||||||||||||
| Nonperforming loans | 10,291 | % | 6,643 | % | 2,306 | % | 10,291 | % | 2,306 | % | ||||||||||||||||
| Nonperforming assets as a % of: | ||||||||||||||||||||||||||
| Loans and other real estate owned | 0.01 | % | 0.02 | % | 0.05 | % | 0.01 | % | 0.05 | % | ||||||||||||||||
| Total assets | 0.01 | % | 0.01 | % | 0.03 | % | 0.01 | % | 0.03 | % | ||||||||||||||||
| Nonperforming loans | ||||||||||||||||||||||||||
| as a % of total loans | 0.01 | % | 0.02 | % | 0.05 | % | 0.01 | % | 0.05 | % | ||||||||||||||||
| Annualized net charge-offs (recoveries) | ||||||||||||||||||||||||||
| as a % of average loans | (0.01 | ) | % | 0.28 | % | (0.03 | ) | % | 0.13 | % | 0.01 | % | ||||||||||||||
| Selected average balances: | ||||||||||||||||||||||||||
| Loans, net of unearned income | $ | 582,335 | $ | 577,489 | $ | 559,770 | $ | 579,925 | $ | 562,909 | ||||||||||||||||
| Total assets | 1,021,742 | 1,026,163 | 990,523 | 1,023,940 | 988,907 | |||||||||||||||||||||
| Total deposits | 925,608 | 930,474 | 905,227 | 928,028 | 906,011 | |||||||||||||||||||||
| Total stockholders' equity | $ | 94,340 | $ | 91,088 | $ | 81,447 | $ | 92,723 | $ | 81,447 | ||||||||||||||||
| Selected period end balances: | ||||||||||||||||||||||||||
| Loans, net of unearned income | $ | 579,589 | $ | 582,040 | $ | 562,714 | $ | 579,589 | $ | 562,714 | ||||||||||||||||
| Allowance for credit losses | 6,586 | 6,776 | 6,965 | 6,586 | 6,965 | |||||||||||||||||||||
| Total assets | 1,085,803 | 1,026,946 | 1,029,224 | 1,085,803 | 1,029,224 | |||||||||||||||||||||
| Total deposits | 988,318 | 931,109 | 939,851 | 988,318 | 939,851 | |||||||||||||||||||||
| Total stockholders' equity | $ | 93,874 | $ | 93,061 | $ | 86,071 | $ | 93,874 | $ | 86,071 | ||||||||||||||||
| (a) Tax equivalent. See “Explanation of Certain Unaudited Non-GAAP Financial Measures” and “Reconciliation of GAAP | ||||||||||||||||||||||||||
| to non-GAAP Measures (unaudited).” | ||||||||||||||||||||||||||
| (b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent | ||||||||||||||||||||||||||
| net interest income. See "Reconciliation of GAAP to non-GAAP Measures (unaudited)" below. | ||||||||||||||||||||||||||
| (c) Calculated by dividing period end share price by earnings per share for the previous four quarters. | ||||||||||||||||||||||||||
| Average Balances and Net Interest Income Analysis (1) | |||||||||||||||||||||||||||||||||
| Quarter ended | |||||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||||||||||||||
| Interest | Interest | Interest | |||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||
| Loans and loans held for sale (2) (3) | $ | 582,590 | $ | 8,274 | 5.70 | % | $ | 577,847 | $ | 8,014 | 5.62 | % | $ | 559,939 | $ | 7,726 | 5.53 | % | |||||||||||||||
| Securities (3) (4) | 250,569 | 1,219 | 1.95 | % | 256,565 | 1,241 | 1.96 | % | 274,026 | 1,336 | 1.96 | % | |||||||||||||||||||||
| Federal funds sold | 29,471 | 260 | 3.54 | % | 24,352 | 216 | 3.60 | % | 25,705 | 280 | 4.37 | % | |||||||||||||||||||||
| Interest bearing bank deposits | 100,439 | 934 | 3.73 | % | 108,509 | 989 | 3.70 | % | 76,237 | 836 | 4.40 | % | |||||||||||||||||||||
| Total interest-earning assets | 963,069 | $ | 10,687 | 4.45 | % | 967,273 | $ | 10,460 | 4.39 | % | 935,907 | $ | 10,178 | 4.36 | % | ||||||||||||||||||
| Cash and due from banks | 13,515 | 14,153 | 15,936 | ||||||||||||||||||||||||||||||
| Other assets (5) | 45,158 | 44,737 | 38,680 | ||||||||||||||||||||||||||||||
| Total assets | $ | 1,021,742 | $ | 1,026,163 | $ | 990,523 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||
| NOW | $ | 213,794 | $ | 627 | 1.18 | % | $ | 236,218 | $ | 779 | 1.34 | % | $ | 198,973 | $ | 649 | 1.31 | % | |||||||||||||||
| Savings and money market | 274,169 | 680 | 0.99 | % | 257,214 | 473 | 0.75 | % | 253,704 | 646 | 1.02 | % | |||||||||||||||||||||
| Time deposits | 181,093 | 1,385 | 3.07 | % | 179,947 | 1,376 | 3.10 | % | 184,666 | 1,471 | 3.20 | % | |||||||||||||||||||||
| Total interest-bearing deposits | 669,056 | 2,692 | 1.61 | % | 673,379 | 2,628 | 1.58 | % | 637,343 | 2,766 | 1.74 | % | |||||||||||||||||||||
| Short-term borrowings | — | — | — | — | — | — | 110 | 1 | 3.65 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 669,056 | $ | 2,692 | 1.61 | % | 673,379 | $ | 2,628 | 1.58 | % | 637,453 | $ | 2,767 | 1.74 | % | ||||||||||||||||||
| Noninterest-bearing deposits | 256,552 | 257,095 | 267,884 | ||||||||||||||||||||||||||||||
| Other liabilities | 1,794 | 4,601 | 3,739 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 94,340 | 91,088 | 81,447 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,021,742 | $ | 1,026,163 | $ | 990,523 | |||||||||||||||||||||||||||
| Net interest income and margin (tax-equivalent) | $ | 7,995 | 3.33 | % | $ | 7,832 | 3.28 | % | $ | 7,411 | 3.18 | % | |||||||||||||||||||||
| (1) In the first quarter of 2026, we changed the presentation of net interest income on a tax-equivalent basis to account for tax-exempt interest income on municipal loans. Also, we | |||||||||||||||||||||||||||||||||
| reclassified average net unrealized gains (losses) on available-for-sale securities to average other assets so that average total securities are presented on an amortized cost basis in our | |||||||||||||||||||||||||||||||||
| calculation of net interest margin. Prior period amounts, including the presentation and calculation of our net interest margin, have been revised to conform with the current period | |||||||||||||||||||||||||||||||||
| presentation. | |||||||||||||||||||||||||||||||||
| (2) Loans on nonaccrual status have been included in the computation of average balances. | |||||||||||||||||||||||||||||||||
| (3) Reflects tax-equivalent adjustments, using the statutory federal income tax rate of | |||||||||||||||||||||||||||||||||
| (4) Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. | |||||||||||||||||||||||||||||||||
| (5) Includes average net unrealized gains (losses) on securities available-for-sale of | |||||||||||||||||||||||||||||||||
| and June 30, 2025, respectively. | |||||||||||||||||||||||||||||||||
| Average Balances and Net Interest Income Analysis (1) | |||||||||||||||||||||||
| Six months ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Interest | Interest | ||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans and loans held for sale (2) (3) | $ | 580,231 | $ | 16,288 | 5.66 | % | $ | 563,086 | $ | 15,318 | 5.49 | % | |||||||||||
| Securities (3) (4) | 253,550 | 2,460 | 1.96 | % | 277,026 | 2,703 | 1.97 | % | |||||||||||||||
| Federal funds sold | 26,925 | 475 | 3.56 | % | 26,282 | 571 | 4.38 | % | |||||||||||||||
| Interest bearing bank deposits | 104,452 | 1,924 | 3.71 | % | 68,777 | 1,514 | 4.44 | % | |||||||||||||||
| Total interest-earning assets | 965,158 | $ | 21,147 | 4.42 | % | 935,171 | $ | 20,106 | 4.34 | % | |||||||||||||
| Cash and due from banks | 13,832 | 17,001 | |||||||||||||||||||||
| Other assets (5) | 44,950 | 36,735 | |||||||||||||||||||||
| Total assets | $ | 1,023,940 | $ | 988,907 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| NOW | $ | 224,944 | $ | 1,407 | 1.26 | % | $ | 204,069 | $ | 1,391 | 1.37 | % | |||||||||||
| Savings and money market | 265,739 | 1,152 | 0.87 | % | 248,233 | 1,147 | 0.93 | % | |||||||||||||||
| Time deposits | 180,523 | 2,761 | 3.08 | % | 187,763 | 3,044 | 3.27 | % | |||||||||||||||
| Total interest-bearing deposits | 671,206 | 5,320 | 1.60 | % | 640,065 | 5,582 | 1.76 | % | |||||||||||||||
| Short-term borrowings | — | — | — | 55 | 1 | 3.67 | % | ||||||||||||||||
| Total interest-bearing liabilities | 671,206 | $ | 5,320 | 1.60 | % | 640,120 | $ | 5,583 | 1.76 | % | |||||||||||||
| Noninterest-bearing deposits | 256,822 | 265,946 | |||||||||||||||||||||
| Other liabilities | 3,189 | 3,030 | |||||||||||||||||||||
| Stockholders' equity | 92,723 | 79,811 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,023,940 | $ | 988,907 | |||||||||||||||||||
| Net interest income and margin (tax-equivalent) | $ | 15,827 | 3.31 | % | $ | 14,523 | 3.13 | % | |||||||||||||||
| (1) In the first quarter of 2026, we changed the presentation of net interest income on a tax-equivalent basis to account for tax-exempt | |||||||||||||||||||||||
| interest income on municipal loans. Also, we reclassified average net unrealized gains (losses) on available-for-sale securities to | |||||||||||||||||||||||
| average other assets so that average total securities are presented on an amortized cost basis in our calculation of net interest margin. | |||||||||||||||||||||||
| Prior period amounts, including the presentation and calculation of our net interest margin, have been revised to conform with the | |||||||||||||||||||||||
| current period presentation. | |||||||||||||||||||||||
| (2) Loans on nonaccrual status have been included in the computation of average balances. | |||||||||||||||||||||||
| (3) Reflects tax-equivalent adjustments, using the statutory federal income tax rate of | |||||||||||||||||||||||
| and securities to a tax-equivalent basis. | |||||||||||||||||||||||
| (4) Securities are included on an amortized cost basis with yield and net interest margin calculated accordingly. | |||||||||||||||||||||||
| (5) Includes average net unrealized gains (losses) on securities available-for-sale of | |||||||||||||||||||||||
| June 30, 2026 and 2025, respectively. | |||||||||||||||||||||||
| Reconciliation of GAAP to non-GAAP Measures (unaudited): | ||||||||||||||||
| Quarters Ended | Six months ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net interest income, as reported (GAAP) | $ | 7,888 | $ | 7,733 | $ | 7,344 | $ | 15,621 | $ | 14,389 | ||||||
| Tax-equivalent adjustment | 107 | 99 | 67 | 206 | 134 | |||||||||||
| Net interest income (tax-equivalent) | $ | 7,995 | $ | 7,832 | $ | 7,411 | $ | 15,827 | $ | 14,523 | ||||||
For additional information, contact:
David A. Hedges
President and CEO
(334) 821-9200
