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Auburn National Bancorporation, Inc. Reports Second Quarter Net Earnings

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Auburn National Bancorporation (Nasdaq: AUBN) reported strong Q2 2025 financial results with net earnings of $1.8 million, or $0.52 per share, an 18% increase from Q1 2025. The bank demonstrated improved performance with net interest income rising 4% quarter-over-quarter and net interest margin expanding to 3.27%, up 7 basis points from Q1.

Key highlights include strong credit quality with nonperforming assets at just 0.03% of total assets, and a 3% decrease in noninterest expense compared to Q1. Total assets stood at $1.0 billion with total deposits of $939.9 million. The company maintained strong capital positions with a tangible common equity ratio of 8.36% and paid a quarterly dividend of $0.27 per share.

Auburn National Bancorporation (Nasdaq: AUBN) ha riportato risultati finanziari solidi nel secondo trimestre del 2025 con utili netti di 1,8 milioni di dollari, pari a 0,52 dollari per azione, un aumento del 18% rispetto al primo trimestre del 2025. La banca ha mostrato un miglioramento delle performance con un reddito netto da interessi in crescita del 4% rispetto al trimestre precedente e un margine netto da interessi che si è ampliato al 3,27%, in aumento di 7 punti base rispetto al primo trimestre.

I punti salienti includono un'elevata qualità del credito con attività non performanti pari a soli 0,03% del totale attivi, e una riduzione del 3% delle spese non legate agli interessi rispetto al primo trimestre. Il totale degli attivi ammontava a 1,0 miliardi di dollari con depositi totali di 939,9 milioni di dollari. La società ha mantenuto solide posizioni patrimoniali con un rapporto di capitale tangibile comune dell'8,36% e ha distribuito un dividendo trimestrale di 0,27 dollari per azione.

Auburn National Bancorporation (Nasdaq: AUBN) reportó sólidos resultados financieros en el segundo trimestre de 2025 con ganancias netas de 1,8 millones de dólares, o 0,52 dólares por acción, un aumento del 18% respecto al primer trimestre de 2025. El banco mostró una mejora en su desempeño con un ingreso neto por intereses que creció un 4% trimestre a trimestre y un margen neto por intereses que se expandió a 3,27%, subiendo 7 puntos básicos desde el primer trimestre.

Los puntos clave incluyen una alta calidad crediticia con activos no productivos de solo 0,03% del total de activos, y una disminución del 3% en gastos no relacionados con intereses en comparación con el primer trimestre. Los activos totales alcanzaron 1.000 millones de dólares con depósitos totales de 939,9 millones de dólares. La compañía mantuvo sólidas posiciones de capital con una ratio de capital tangible común del 8,36% y pagó un dividendo trimestral de 0,27 dólares por acción.

Auburn National Bancorporation (나스닥: AUBN)은 2025년 2분기 강력한 재무실적을 보고했으며, 순이익 180만 달러, 주당 0.52달러로 2025년 1분기 대비 18% 증가했습니다. 은행은 분기별로 순이자수익이 4% 증가하고 순이자마진이 3.27%로 1분기 대비 7베이시스포인트 상승하며 개선된 성과를 보였습니다.

주요 내용으로는 총자산 대비 0.03%에 불과한 부실자산 비율과 1분기 대비 3% 감소한 비이자 비용이 포함됩니다. 총자산은 10억 달러, 총 예금은 9억 3,990만 달러였습니다. 회사는 8.36%의 유형 보통주 자본비율을 유지했으며, 주당 0.27달러의 분기 배당금을 지급했습니다.

Auburn National Bancorporation (Nasdaq : AUBN) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un bénéfice net de 1,8 million de dollars, soit 0,52 dollar par action, en hausse de 18 % par rapport au premier trimestre 2025. La banque a affiché une meilleure performance avec un revenu net d’intérêts en hausse de 4 % d’un trimestre à l’autre et une marge nette d’intérêts portée à 3,27 %, en progression de 7 points de base par rapport au premier trimestre.

Parmi les points clés, une qualité de crédit solide avec des actifs non performants représentant seulement 0,03 % du total des actifs, et une diminution de 3 % des charges hors intérêts par rapport au premier trimestre. Le total des actifs s’élevait à 1,0 milliard de dollars avec des dépôts totaux de 939,9 millions de dollars. La société a maintenu des positions de capital solides avec un ratio de fonds propres tangibles de 8,36 % et a versé un dividende trimestriel de 0,27 dollar par action.

Auburn National Bancorporation (Nasdaq: AUBN) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit Nettoeinnahmen von 1,8 Millionen US-Dollar, bzw. 0,52 US-Dollar je Aktie, was einer Steigerung von 18 % gegenüber dem ersten Quartal 2025 entspricht. Die Bank zeigte eine verbesserte Leistung mit einem Nettozinsertrag, der quartalsübergreifend um 4 % stieg, und einer Nettomarge von 3,27%, was einem Anstieg von 7 Basispunkten gegenüber dem ersten Quartal entspricht.

Wesentliche Highlights sind die starke Kreditqualität mit notleidenden Vermögenswerten von nur 0,03 % der Gesamtvermögenswerte sowie ein Rückgang der nicht zinstragenden Aufwendungen um 3 % im Vergleich zum ersten Quartal. Die Gesamtvermögenswerte beliefen sich auf 1,0 Milliarden US-Dollar mit Gesamteinlagen von 939,9 Millionen US-Dollar. Das Unternehmen behielt eine starke Kapitalausstattung mit einer harten Kernkapitalquote von 8,36% bei und zahlte eine quartalsweise Dividende von 0,27 US-Dollar je Aktie aus.

Positive
  • Net earnings increased 18% to $0.52 per share quarter-over-quarter
  • Net interest margin improved to 3.27%, up 7 basis points from Q1 2025
  • Strong credit quality with nonperforming assets at only 0.03% of total assets
  • Noninterest expense decreased 3% compared to Q1 2025
  • No FHLB advances or wholesale funding outstanding, indicating strong liquidity
  • Book value per share increased to $24.64, up from $23.79 in Q1 2025
Negative
  • Loan demand has slowed with total loans decreasing from $578.1M to $562.7M year-over-year
  • Total deposits decreased from $946.4M to $939.9M year-over-year
  • Noninterest income declined year-over-year from $0.9M to $0.8M

Insights

AUBN shows strong Q2 2025 with 18% EPS growth, improving margins, and exceptional asset quality despite slowing loan demand.

Auburn National Bancorporation delivered impressive Q2 results with $1.8 million in net earnings ($0.52 per share), representing an 18% increase from Q1 2025 and a 4% improvement year-over-year. This performance stems from three key strengths:

First, the bank's net interest margin expanded to 3.27%, up 7 basis points sequentially and 21 basis points year-over-year. This margin improvement occurred despite management noting slowing loan demand, suggesting effective asset-liability management as the bank benefits from asset repricing while simultaneously reducing deposit costs.

Second, operational efficiency improved as noninterest expenses decreased 3% quarter-over-quarter to $5.7 million, driven by reductions in occupancy and other noninterest expenses. The bank maintained this discipline while still investing in talent, as evidenced by the year-over-year increase in salaries and benefits.

Third, asset quality remains exceptional with nonperforming assets at just 0.03% of total assets, down from 0.05% in Q1 and 0.08% a year ago. The allowance for credit losses stands at 1.24% of total loans, providing substantial coverage against potential defaults.

The bank's capital position strengthened with book value per share reaching $24.64, up 3.6% from Q1 and 14.4% year-over-year. This improvement was primarily driven by earnings retention and a $2.1 million reduction in unrealized securities losses. The tangible common equity ratio improved slightly to 8.36%, well above regulatory requirements, while maintaining its $0.27 quarterly dividend.

The strategic decision to use proceeds from a $14.9 million loan payoff to eliminate $15 million of high-cost funding demonstrates management's focus on balance sheet optimization, supporting the margin improvement despite the reduction in earning assets.

Second Quarter 2025 Highlights:

  • Earnings per share increased 18% compared to 1Q 2025
  • Net interest income increased 4% compared to 1Q 2025
  • Net interest margin (tax-equivalent) increased 7 basis points to 3.27%, compared to 1Q 2025
  • Noninterest expense decreased 3% compared to 1Q 2025
  • Strong credit quality – Nonperforming assets to total assets were 0.03%

AUBURN, Ala., July 22, 2025 (GLOBE NEWSWIRE) -- Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of $1.8 million, or $0.52 per share, for the second quarter of 2025, compared to $1.5 million, or $0.44 per share, for the first quarter of 2025, and $1.7 million, or $0.50 per share, for the second quarter of 2024. Net earnings were $3.4 million, or $0.96 per share, for the first six months of 2025, compared to $3.1 million, or $0.89 per share, for the first six months of 2024.

“Our second quarter results reflect strong credit quality and continued improvement in our net interest margin,” said David A. Hedges, President and CEO. “While loan demand has slowed, we remain optimistic that our net interest margin will continue to improve as loans and securities re-price. Once again, our capital and liquidity remain strong and we are well positioned to meet the needs of our customers,” continued Mr. Hedges.
        
Net interest income (tax-equivalent) was $7.4 million in the second quarter of 2025, compared to $7.1 million in the first quarter of 2025, and $6.7 million in the second quarter of 2024. The increase was due to growth in average interest-earnings assets and improvements in our net interest margin.

Net interest margin (tax-equivalent) was 3.27% in the second quarter of 2025, compared to 3.20% in the first quarter of 2025, and 3.06% in the second quarter of 2024. The increase compared to the first quarter of 2025 was primarily due to a decrease in our cost of interest-bearing deposits. The increase compared to the second quarter of 2024 was primarily due to improved yields on interest-earning assets, and a decrease in our cost of interest-bearing deposits.

Nonperforming assets were $0.3 million, or 0.03% of total assets, at June 30, 2025, compared to $0.5 million, or 0.05% at March 31, 2025, and $0.8 million, or 0.08% of total assets, at June 30, 2024.

The Company recorded a charge to provision for credit losses of $113 thousand in the second quarter of 2025, compared to a negative provision for credit losses of $10 thousand and $123 thousand, respectively, in the first quarter of 2025 and the second quarter of 2024.

At June 30, 2025, the Company’s allowance for credit losses was $7.0 million, or 1.24% of total loans, compared to $6.8 million, or 1.20% of total loans, at March 31, 2025, and $7.1 million, or 1.24% of total loans, at June 30, 2024.

Noninterest income was $0.8 million for the second quarter of 2025, compared to $0.7 million for the first quarter of 2025, and $0.9 million in the second quarter of 2024. These changes reflect fluctuations in mortgage lending income and other noninterest income.

Noninterest expense was $5.7 million for the second quarter of 2025, compared to $5.9 million for the first quarter of 2025, and $5.5 million in the second quarter of 2024. The decrease from the first quarter of 2025 was primarily related to decreases in net occupancy expense and other noninterest expense. The increase compared to the second quarter of 2024 was primarily related to routine increases in salaries and benefits expense and increases in professional fees expense.

The provision for income tax expense was $0.5 million for the second quarter of 2025, compared to income tax expense of $0.4 million for the first quarter of 2025, and income tax expense of $0.5 million for the second quarter of 2024.

The effective tax rate for the second quarter of 2025 was 20.92%, compared to 20.40% for the first quarter of 2025 and 21.50% for the second quarter of 2024. The Company’s effective income tax rate is principally affected by tax-exempt earnings from the Company’s investments in municipal securities and loans, bank-owned life insurance, and New Markets Tax Credits.

Total assets were $1.0 billion at June 30, 2025, compared to $996.8 million at March 31, 2025 and $1.0 billion at June 30, 2024. Loans, net of unearned income were $562.7 million at June 30, 2025, compared to $560.7 million at March 31, 2025 and $578.1 million at June 30, 2024. The decrease from June 30, 2024 is primarily related to the payoff of a $14.9 million loan related to one borrower. Proceeds from this loan payoff were used to repay $15.0 million of high-cost non-core funding. Total deposits were $939.9 million at June 30, 2025, compared to $910.5 million at March 31, 2025, and $946.4 million at June 30, 2024. The increase in deposits compared to March 31, 2025 was primarily due to fluctuations in reciprocal customer deposits sold through the Intrafi network. At June 30, 2025 the Company had no reciprocal deposits sold, compared to $64.7 million sold at March 31, 2025, and none at June 30, 2024. The decrease in deposits compared to June 30, 2024 was primarily related to the repayment of $15.0 million in time deposits held by the State of Alabama, partially offset by growth in both noninterest and interest-bearing demand deposits. The Company had no FHLB advances or other wholesale funding outstanding at June 30, 2025, March 31, 2025, or June 30, 2024.

At June 30, 2025, the Company's consolidated stockholders' equity (book value) was $86.1 million or $24.64 per share, compared to $83.1 million, or $23.79 per share, at March 31, 2025, and $75.2 million, or $21.53 per share, at June 30, 2024. The increase from March 31, 2025 was primarily driven by other comprehensive income of $2.1 million due to a decrease in unrealized losses on securities available-for-sale, net of tax, plus net earnings of $1.8 million.   These increases in stockholders’ equity were partially offset by cash dividends paid of $0.9 million. Unrealized losses on our securities portfolio vary with market interest rates and do not affect our capital for regulatory capital purposes.

The Company’s tangible common equity (“TCE”) ratio or total equity to total assets ratio was 8.36% at June 30, 2025, compared to 8.34% at March 31, 2025, and 7.34% at June 30, 2024. All of the Company’s marketable securities are classified as available-for-sale. Therefore, any changes in the fair value of the Company’s securities portfolio are reflected in total equity, net of tax, under generally accepted accounting principles.

The Company paid cash dividends of $0.27 per share in the second quarter of 2025. At June 30, 2025, the Bank’s regulatory capital ratios were well above the minimum amounts required to be “well capitalized” under current regulatory standards.

About Auburn National Bancorporation, Inc.

Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total assets of approximately $1.0 billion. The Bank is an Alabama state-chartered bank that is a member of the Federal Reserve System, which has operated continuously since 1907. Both the Company and the Bank are headquartered in Auburn, Alabama. The Bank conducts its business in East Alabama, including Lee County and surrounding areas. The Bank currently operates seven full-service branches in Auburn, Opelika, Valley, and Notasulga, Alabama. The Bank also operates a loan production office in Phenix City, Alabama. Additional information about the Company and the Bank may be found by visiting www.auburnbank.com.

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 Federal Reserve 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, 2024 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, and the presentation and calculation of the efficiency ratio, a non-GAAP measure. 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.

For additional information, contact:
David A. Hedges
President and CEO
(334) 821-9200

Financial Highlights (unaudited)                   
    Quarters Ended  Six months ended 
(Dollars in thousands, except per share June 30,   March 31,   June 30,   June 30,   June 30, 
amounts) 2025    2025    2024    2025   2024  
Results of Operations                   
Net interest income (a)$7,363   $7,062   $6,728   $14,425  $13,405  
Less: tax-equivalent adjustment 19    17    19    36   39  
 Net interest income (GAAP) 7,344    7,045    6,709    14,389   13,366  
Noninterest income 789    747    896    1,536   1,783  
 Total revenue 8,133    7,792    7,605    15,925   15,149  
Provision for credit losses 113    (10)   (123)   103   211  
Noninterest expense 5,702    5,880    5,519    11,582   11,194  
Income tax expense 485    392    475    877   639  
Net earnings$1,833   $1,530   $1,734   $3,363  $3,105  
                       
Per share data:                   
Basic and diluted net earnings:$0.52   $0.44   $0.50   $0.96  $0.89  
Cash dividends declared$0.27   $0.27   $0.27   $0.54  $0.54  
Weighted average shares outstanding:                   
 Basic and diluted 3,493,699    3,493,699    3,493,699    3,493,699   3,493,681  
Shares outstanding, at period end 3,493,699    3,493,699    3,493,699    3,493,699   3,493,699  
Book value$24.64   $23.79   $21.53   $24.64  $21.53  
Common stock price:                   
 High$25.98   $23.37   $19.25   $25.28  $21.55  
 Low 19.48    20.36    16.63    19.48   16.63  
 Period-end: 25.00    21.59    18.29    25.00   18.29  
  To earnings ratio (c) 13.09 x  11.42 x  101.61 x  13.09x  101.61 x
  To book value 101 % 91 % 85 % 101% 85 %
Performance ratios:                   
Return on average equity (annualized) 9.00 % 7.83 % 9.63 % 8.26% 8.34 %
Return on average assets (annualized) 0.74 % 0.62 % 0.71 % 0.68% 0.64 %
Dividend payout ratio 51.92 % 61.36 % 54.00 % 56.25% 60.67 %
Other financial data:                   
Net interest margin (a) 3.27 % 3.20 % 3.06 % 3.24% 3.05 %
Effective income tax rate 20.92 % 20.40 % 21.50 % 20.68% 17.07 %
Efficiency ratio (b) 69.95 % 75.30 % 72.39 % 72.56% 73.70 %
Asset Quality:                   
Nonperforming assets:                   
 Nonperforming (nonaccrual) loans$302   $520   $794   $302  $794  
  Total nonperforming assets$302   $520   $794   $302  $794  
                       
Net (recoveries) charge-offs$(48)  $64   $9   $16  $(58) 
                       
Allowance for credit losses as a % of:                   
 Loans 1.24 % 1.20 % 1.24 % 1.24% 1.24 %
 Nonperforming loans 2,306 % 1,298 % 899 % 2,306% 899 %
Nonperforming assets as a % of:                   
 Loans and other real estate owned 0.05 % 0.09 % 0.14 % 0.05% 0.14 %
 Total assets 0.03 % 0.05 % 0.08 % 0.03% 0.08 %
Nonperforming loans                   
 as a % of total loans 0.05 % 0.09 % 0.14 % 0.05% 0.14 %
Annualized net (recoveries) charge-offs                   
 as a % of average loans (0.03)% 0.05 % 0.01 % 0.01% (0.02)%
Selected average balances:                   
Securities$240,177   $240,588   $258,228   $240,381  $262,917  
Loans, net of unearned income 559,770    566,082    573,443    562,909   567,100  
Total assets 990,523    987,272    978,107    988,907   977,518  
Total deposits 905,227    906,805    900,673    906,011   898,862  
Total stockholders' equity$81,447   $78,158   $72,059   $81,447  $74,503  
Selected period end balances:                   
Securities$239,681   $242,468   $254,359   $239,681  $254,359  
Loans, net of unearned income 562,714    560,650    578,068    562,714   578,068  
Allowance for credit losses 6,965    6,750    7,142    6,965   7,142  
Total assets 1,029,224    996,786    1,025,054    1,029,224   1,025,054  
Total deposits 939,851    910,503    946,405    939,851   946,405  
Total stockholders' equity$86,071   $83,115   $75,209   $86,071  $75,209  
                       
(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. 
  


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) 2025  2025  2024  2025  2024 
Net interest income, as reported (GAAP)$7,344 $7,045 $6,709 $14,389 $13,366 
Tax-equivalent adjustment 19  17  19  36  39 
Net interest income (tax-equivalent)$7,363 $7,062 $6,728 $14,425 $13,405 

FAQ

What were Auburn National Bancorporation's (AUBN) Q2 2025 earnings per share?

AUBN reported earnings of $0.52 per share for Q2 2025, an 18% increase from $0.44 in Q1 2025 and up from $0.50 in Q2 2024.

How did AUBN's net interest margin perform in Q2 2025?

AUBN's net interest margin improved to 3.27% in Q2 2025, up 7 basis points from 3.20% in Q1 2025 and higher than 3.06% in Q2 2024, primarily due to decreased cost of interest-bearing deposits.

What is AUBN's current credit quality status?

AUBN maintained excellent credit quality with nonperforming assets at just 0.03% of total assets ($0.3 million) as of June 30, 2025, improved from 0.05% in Q1 2025.

How much dividend did AUBN pay in Q2 2025?

AUBN paid a cash dividend of $0.27 per share in the second quarter of 2025.

What was AUBN's book value per share as of June 30, 2025?

AUBN's book value per share was $24.64 as of June 30, 2025, an increase from $23.79 at March 31, 2025.
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