Auburn National Q3 2026 earnings rise to $2.52M
Average loan balances declined during the quarter primarily due to payoffs, while third-quarter net interest margin was 3.36%.
Sentiment and the balance of points
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Rhea-AI Filing Summary
Auburn National Bancorporation, Inc. reported third-quarter 2026 net earnings of $2.523 million, or $0.72 per share, compared with $2.227 million, or $0.64 per share, in third-quarter 2025. Net earnings for the first nine months were $7.019 million, or $2.01 per share, versus $5.590 million, or $1.60 per share, a year earlier.
Tax-equivalent net interest margin was 3.36%, versus 3.21% a year earlier, and GAAP net interest income was $8.014 million versus $7.572 million. Year-over-year margin growth reflected higher earning-asset yields and a more favorable asset mix, while deposit costs declined. Average loans were $579.575 million, down from $582.335 million in the second quarter; the company attributed the quarterly loan-balance decline primarily to payoffs. At September 30, total assets were $1.016988 billion, and reciprocal customer deposits on the balance sheet were $29.6 million. Stockholders’ equity was $89.587 million, down from $93.874 million at June 30, primarily reflecting a $5.7 million other comprehensive loss, $0.9 million in cash dividends and $0.2 million in stock repurchases, partly offset by $2.523 million in net earnings. The quarterly cash dividend was $0.27 per share.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net earnings reached $2.523 million, versus $2.227 million a year earlier.
- Minor pointNine-month net earnings reached $7.019 million, versus $5.590 million in 2025.
Negative
- None.
Filing Explained
In
8-K Event Classification
Key Figures
Key Terms
Net interest margin financial
Tax-equivalent adjustment financial
Current expected credit losses financial
Allowance for credit losses financial
Efficiency ratio financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did AUBN earn in the third quarter of 2026?
What were AUBN’s earnings for the first nine months of 2026?
What drove AUBN’s net interest margin in the third quarter?
AI-generated analysis. How Rhea-AI works. Not financial advice.
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statements, Pro Forma Financial Information and Exhibits. |
(d) | Exhibits. The following exhibits are furnished herewith: |
Exhibit No. | Exhibit Description |
99.1 | Press Release, dated October 27, 2026 |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AUBURN NATIONAL BANCORPORATION, INC. (Registrant) /s/ David A. Hedges David A. Hedges President and CEO |
Exhibit 99.1
| For additional information, contact: David A. Hedges President and CEO (334) 821-9200 |
Press Release – October 27, 2026
Auburn National Bancorporation, Inc. Reports Third Quarter Net Earnings
Third Quarter 2026 vs. Third Quarter 2025 Highlights:
| ● | Earnings per share increased 13% |
| ● | Net interest income (tax-equivalent) increased 6% |
| ● | Net interest margin (tax-equivalent) increased 15 basis points to 3.36% |
| ● | Negative provision for credit losses of $50 thousand, compared to a negative provision for credit losses of $255 thousand in 3Q 2025 |
| ● | Return on assets (annualized) improved to 0.99%, compared to 0.89% in 3Q 2025 |
| ● | Strong credit quality – Nonperforming assets to total assets were 0.02% |
AUBURN, Alabama – Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of $2.5 million, or $0.72 per share, for the third quarter of 2026, compared to $2.3 million, or $0.66 per share, for the second quarter of 2026, and $2.2 million, or $0.64 per share, for the third quarter of 2025. Net earnings were $7.0 million, or $2.01 per share, for the first nine months of 2026, compared to $5.6 million, or $1.60 per share, for the first nine months of 2025.
"Our third quarter results reflect continued revenue growth, improved profitability, and further expansion of our net interest margin," said David A. Hedges, President and CEO. "Earnings per share increased 13% compared to the third quarter of 2025, and our efficiency ratio improved to 64.8%. While loan balances declined during the quarter primarily due to payoffs, our asset quality, capital, and liquidity remain strong, and we are well positioned to support future growth," continued Mr. Hedges.
Net interest income (tax-equivalent) was $8.1 million in the third quarter of 2026, compared to $8.0 million in the second quarter of 2026, and $7.6 million in the third quarter of 2025. Compared to the second quarter of 2026, the increase was primarily due to improvements in our net interest margin. Compared to the third quarter of 2025, the increase was due to both improvements in our net interest margin and growth in average interest-earning assets of 2%.
Net interest margin (tax-equivalent) was 3.36% in the third quarter of 2026, compared to 3.33% in the second quarter of 2026 and 3.21% in the third quarter of 2025. Compared to the second quarter of 2026, the increase in net interest margin was primarily due to higher yields on earning assets and a more favorable asset mix, including cash that was deployed into higher-yielding securities. These improvements were partially offset by an increase in our deposit costs. Compared to the third quarter of 2025, the increase in net interest margin was due to the same reasons described above, except for our deposit costs which decreased. Average loans were approximately $579.6 million in the third quarter of 2026, compared to $582.3 million in the second quarter of 2026, and $556.2 million in the third quarter of 2025.
Nonperforming assets were $0.2 million, or 0.02% of total assets, at September 30, 2026, compared to $0.1 million, or 0.01% of total assets, at both June 30, 2026 and September 30, 2025.
Net recoveries were $8 thousand, or (0.01%) of average loans on an annualized basis, for the third quarter of 2026, compared to net recoveries of $22 thousand, or (0.02%) of average loans on an annualized basis, for the second quarter of 2026, and net charge-offs of $78 thousand, or 0.06% of average loans on an annualized basis, for the third quarter of 2025.
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At September 30, 2026, the Company’s allowance for credit losses was $6.5 million or 1.13% of total loans, compared to $6.6 million, or 1.14% of total loans at June 30, 2026, and $6.7 million, or 1.20% of total loans at September 30, 2025. The decrease from June 30, 2026 was primarily related to a decrease in total loans outstanding. The decrease from September 30, 2025 was primarily due to refinements in the Company’s calculation of current expected credit losses ("CECL"). During the first quarter of 2026, the Company established a new loan segment within its CECL calculation for municipal loans, which reduced the allowance for credit losses due to lower expected credit costs associated with these loans.
The Company recorded a negative provision for credit losses of $50 thousand in the third quarter of 2026, compared to a negative provision for credit losses of $248 thousand in the second quarter of 2026, and a negative provision for credit losses of $255 thousand in the third quarter of 2025. The provision for credit losses is affected by changes in overall balance and composition of our loan portfolio and unfunded commitments, our internal assessment of the credit quality of the loan portfolio, our expectations about future economic conditions, and net charge-offs.
Noninterest income was $1.0 million for the third quarter of 2026, compared to $0.9 million for the second quarter of 2026 and $0.8 million for the third quarter of 2025. The increase from the third quarter of 2025 was primarily due to an increase in bank-owned life insurance income from non-taxable death benefits received during the second and third quarters of 2026.
Noninterest expense was $5.9 million for the third quarter of 2026, compared to $6.1 million for the second quarter of 2026 and $5.8 million for the third quarter of 2025. The decrease from the second quarter of 2026 was primarily due to the $0.4 million loss contingency accrual recorded in other noninterest expense during the second quarter of 2026, as well as lower professional fees and other noninterest expense, partially offset by higher salaries and benefits expense. The increase from the third quarter of 2025 was primarily due to higher salaries and benefits and other noninterest expense, partially offset by lower net occupancy and equipment expense and professional fees.
The provision for income tax expense was $0.6 million for the third quarter of 2026, unchanged compared to both the second quarter of 2026 and the third quarter of 2025.
The effective tax rate for the third quarter of 2026 was 19.75%, compared to 21.00% for the second quarter of 2026 and 21.86% for the third quarter of 2025. The decrease in the effective tax rate was primarily due to a higher level of tax-exempt income, including the non-taxable bank owned life insurance death benefits received during the second and third quarters of 2026. 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 September 30, 2026, compared to $1.1 billion at June 30, 2026 and $1.0 billion at September 30, 2025. The decrease compared to June 30, 2026 was primarily due to fluctuations in reciprocal customer deposits retained on balance sheet. The Company had $29.6 million of reciprocal customer deposits on its balance sheet at September 30, 2026, compared to $82.3 million at June 30, 2026.
At September 30, 2026, the Company’s stockholders’ equity was $89.6 million, or $25.74 per share, compared to $93.9 million, or $26.91 per share, at June 30, 2026 and $89.6 million, or $25.65 per share, at September 30, 2025. The decrease from June 30, 2026 was primarily due to other comprehensive loss of $5.7 million from an increase in unrealized losses on securities available-for-sale and a cash flow hedge, net of tax, cash dividends paid of $0.9 million, and stock repurchases of $0.2 million, partially offset by net earnings of $2.5 million. The Company’s equity-to-assets ratio was 8.81% at September 30, 2026, compared to 8.65% at June 30, 2026 and 8.86% at September 30, 2025. The increase in the equity-to-assets ratio from June 30, 2026 was primarily due to the decrease in total assets from fluctuations in reciprocal deposits retained on balance sheet.
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, but do not affect our capital for regulatory purposes.
The Company paid cash dividends of $0.27 per share in the third quarter of 2026. At September 30, 2026, the Bank’s regulatory capital ratios were well above the minimum amounts required to be "well capitalized" under current regulatory standards.
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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 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, the effects of inflation, employment, and 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.
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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. 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.
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Reports Third Quarter Net Earnings/page 5
Financial Highlights (unaudited)
| | Quarters Ended | | | Nine months ended | |
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| | September 30, | | | June 30, | | | September 30, | | | September 30, | | | September 30, | |
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(Dollars in thousands, except per share amounts) | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Results of Operations | | | | | | | | | | | | | | | | | | | | |
Net interest income (a) | | $ | 8,121 | | | $ | 7,995 | | | $ | 7,641 | | | $ | 23,948 | | | $ | 22,164 | |
Less: tax-equivalent adjustment | | | 107 | | | | 107 | | | | 69 | | | | 313 | | | | 203 | |
Net interest income (GAAP) | | | 8,014 | | | | 7,888 | | | | 7,572 | | | | 23,635 | | | | 21,961 | |
Noninterest income | | | 974 | | | | 878 | | | | 829 | | | | 2,745 | | | | 2,365 | |
Total revenue | | | 8,988 | | | | 8,766 | | | | 8,401 | | | | 26,380 | | | | 24,326 | |
Provision for credit losses | | | (50 | ) | | | (248 | ) | | | (255 | ) | | | (374 | ) | | | (152 | ) |
Noninterest expense | | | 5,894 | | | | 6,105 | | | | 5,806 | | | | 17,900 | | | | 17,388 | |
Income tax expense | | | 621 | | | | 611 | | | | 623 | | | | 1,835 | | | | 1,500 | |
Net earnings | | $ | 2,523 | | | $ | 2,298 | | | $ | 2,227 | | | $ | 7,019 | | | $ | 5,590 | |
| | | | | | | | | | | | | | | | | | | | |
Per share data: | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net earnings: | | $ | 0.72 | | | $ | 0.66 | | | $ | 0.64 | | | $ | 2.01 | | | $ | 1.60 | |
Cash dividends declared | | $ | 0.27 | | | $ | 0.27 | | | $ | 0.27 | | | $ | 0.81 | | | $ | 0.81 | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 3,484,168 | | | | 3,492,107 | | | | 3,493,699 | | | | 3,490,131 | | | | 3,493,699 | |
Diluted | | | 3,485,208 | | | | 3,492,107 | | | | 3,495,972 | | | | 3,491,127 | | | | 3,494,465 | |
Shares outstanding, at period end | | | 3,480,486 | | | | 3,487,830 | | | | 3,493,699 | | | | 3,480,486 | | | | 3,493,699 | |
Stockholders' equity (book value) | | $ | 25.74 | | | | 26.91 | | | | 25.65 | | | | 25.74 | | | | 25.65 | |
Common stock price: | | | | | | | | | | | | | | | | | | | | |
High | | $ | 27.82 | | | $ | 28.88 | | | $ | 28.47 | | | $ | 28.88 | | | $ | 28.47 | |
Low | | | 25.01 | | | | 23.03 | | | | 23.13 | | | | 21.01 | | | | 19.48 | |
Period-end: | | | 26.25 | | | | 27.04 | | | | 28.44 | | | | 26.25 | | | | 28.44 | |
To earnings ratio (c) | | 10.54 | x | | 11.22 | x | | 13.87 | x | | 10.54 | x | | 13.87 | x |
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To book value | | | 102 | % | | | 100 | % | | | 111 | % | | | 102 | % | | | 111 | % |
Performance ratios: | | | | | | | | | | | | | | | | | | | | |
Return on average equity (annualized) | | | 10.68 | % | | | 9.74 | % | | | 10.65 | % | | | 10.03 | % | | | 9.06 | % |
Return on average assets (annualized) | | | 0.99 | % | | | 0.90 | % | | | 0.89 | % | | | 0.92 | % | | | 0.75 | % |
Dividend payout ratio | | | 37.50 | % | | | 40.91 | % | | | 42.19 | % | | | 40.30 | % | | | 50.63 | % |
Other financial data: | | | | | | | | | | | | | | | | | | | | |
Net interest margin (a) | | | 3.36 | % | | | 3.33 | % | | | 3.21 | % | | | 3.32 | % | | | 3.16 | % |
Effective income tax rate | | | 19.75 | % | | | 21.00 | % | | | 21.86 | % | | | 20.73 | % | | | 21.16 | % |
Efficiency ratio (b) | | | 64.80 | % | | | 68.80 | % | | | 68.55 | % | | | 67.06 | % | | | 70.89 | % |
Asset Quality: | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets: | | | | | | | | | | | | | | | | | | | | |
Nonperforming (nonaccrual) loans | | $ | 218 | | | $ | 64 | | | $ | 104 | | | $ | 218 | | | $ | 104 | |
Total nonperforming assets | | $ | 218 | | | $ | 64 | | | $ | 104 | | | $ | 218 | | | $ | 104 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge-offs (recoveries) | | $ | (8 | ) | | $ | (22 | ) | | $ | 78 | | | $ | 372 | | | $ | 93 | |
Allowance for credit losses as a % of: | | | | | | | | | | | | | | | | | | | | |
Loans | | | 1.13 | % | | | 1.14 | % | | | 1.20 | % | | | 1.13 | % | | | 1.20 | % |
Nonperforming loans | | | 2,976 | % | | | 10,291 | % | | | 6,434 | % | | | 2,976 | % | | | 6,434 | % |
Nonperforming assets as a % of: | | | | | | | | | | | | | | | | | | | | |
Loans and other real estate owned | | | 0.04 | % | | | 0.01 | % | | | 0.02 | % | | | 0.04 | % | | | 0.02 | % |
Total assets | | | 0.02 | % | | | 0.01 | % | | | 0.01 | % | | | 0.02 | % | | | 0.01 | % |
Nonperforming loans as a % of total loans | | | 0.04 | % | | | 0.01 | % | | | 0.02 | % | | | 0.04 | % | | | 0.02 | % |
Annualized net charge-offs (recoveries) as a % of average loans | | | (0.01 | )% | | | (0.02 | )% | | | 0.06 | % | | | 0.09 | % | | | 0.02 | % |
Selected average balances: | | | | | | | | | | | | | | | | | | | | |
Loans, net of unearned income | | $ | 579,575 | | | $ | 582,335 | | | $ | 556,233 | | | $ | 579,807 | | | $ | 560,659 | |
Total assets | | | 1,018,667 | | | | 1,021,742 | | | | 997,892 | | | | 1,022,163 | | | | 991,935 | |
Total deposits | | | 921,216 | | | | 925,608 | | | | 909,293 | | | | 925,732 | | | | 907,105 | |
Total stockholders' equity | | $ | 94,526 | | | $ | 94,340 | | | $ | 83,642 | | | $ | 93,330 | | | $ | 82,281 | |
Selected period end balances: | | | | | | | | | | | | | | | | | | | | |
Loans, net of unearned income | | $ | 571,847 | | | $ | 579,589 | | | $ | 557,912 | | | $ | 571,847 | | | $ | 557,912 | |
Allowance for credit losses | | | 6,487 | | | | 6,586 | | | | 6,691 | | | | 6,487 | | | | 6,691 | |
Total assets | | | 1,016,988 | | | | 1,085,803 | | | | 1,011,184 | | | | 1,016,988 | | | | 1,011,184 | |
Total deposits | | | 923,338 | | | | 988,318 | | | | 917,266 | | | | 923,338 | | | | 917,266 | |
Total stockholders' equity | | $ | 89,587 | | | $ | 93,874 | | | $ | 89,613 | | | $ | 89,587 | | | $ | 89,613 | |
(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. |
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Reports Third Quarter Net Earnings/page 6
Average Balances and Net Interest Income Analysis (1)
| | Quarter Ended | |
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| | September 30, 2026 | | | June 30, 2026 | | | September 30, 2025 | |
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| | | | | | Interest | | | | | | | | | | | Interest | | | | | | | | | | | Interest | | | | | |
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| | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | |
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(Dollars in thousands) | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | |
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Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and loans held for sale (2) (3) | | $ | 579,925 | | | $ | 8,393 | | | | 5.74 | % | | $ | 582,590 | | | $ | 8,274 | | | | 5.70 | % | | $ | 556,736 | | | $ | 7,844 | | | | 5.59 | % |
Securities (3) (4) | | | 286,221 | | | | 1,607 | | | | 2.23 | % | | | 250,569 | | | | 1,219 | | | | 1.95 | % | | | 268,248 | | | | 1,306 | | | | 1.93 | % |
Federal funds sold | | | 25,033 | | | | 233 | | | | 3.69 | % | | | 29,471 | | | | 260 | | | | 3.54 | % | | | 27,572 | | | | 304 | | | | 4.37 | % |
Interest-bearing bank deposits | | | 68,619 | | | | 643 | | | | 3.72 | % | | | 100,439 | | | | 934 | | | | 3.73 | % | | | 90,964 | | | | 1,027 | | | | 4.48 | % |
Total interest-earning assets | | | 959,798 | | | $ | 10,876 | | | | 4.50 | % | | | 963,069 | | | $ | 10,687 | | | | 4.45 | % | | | 943,520 | | | $ | 10,481 | | | | 4.41 | % |
Cash and due from banks | | | 13,394 | | | | | | | | | | | | 13,515 | | | | | | | | | | | | 13,627 | | | | | | | | | |
Other assets (5) | | | 45,475 | | | | | | | | | | | | 45,158 | | | | | | | | | | | | 40,745 | | | | | | | | | |
Total assets | | $ | 1,018,667 | | | | | | | | | | | $ | 1,021,742 | | | | | | | | | | | $ | 997,892 | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW | | $ | 209,454 | | | $ | 597 | | | | 1.13 | % | | $ | 213,794 | | | $ | 627 | | | | 1.18 | % | | $ | 199,060 | | | $ | 650 | | | | 1.30 | % |
Savings and money market | | | 269,588 | | | | 743 | | | | 1.09 | % | | | 274,169 | | | | 680 | | | | 0.99 | % | | | 265,627 | | | | 763 | | | | 1.14 | % |
Time deposits | | | 186,763 | | | | 1,414 | | | | 3.00 | % | | | 181,093 | | | | 1,385 | | | | 3.07 | % | | | 180,618 | | | | 1,427 | | | | 3.13 | % |
Total interest-bearing deposits | | | 665,805 | | | | 2,754 | | | | 1.64 | % | | | 669,056 | | | | 2,692 | | | | 1.61 | % | | | 645,305 | | | | 2,840 | | | | 1.75 | % |
Short-term borrowings | | | 132 | | | | 1 | | | | 3.01 | % | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total interest-bearing liabilities | | | 665,937 | | | $ | 2,755 | | | | 1.64 | % | | | 669,056 | | | $ | 2,692 | | | | 1.61 | % | | | 645,305 | | | $ | 2,840 | | | | 1.75 | % |
Noninterest-bearing deposits | | | 255,411 | | | | | | | | | | | | 256,552 | | | | | | | | | | | | 263,988 | | | | | | | | | |
Other liabilities | | | 2,793 | | | | | | | | | | | | 1,794 | | | | | | | | | | | | 4,957 | | | | | | | | | |
Stockholders' equity | | | 94,526 | | | | | | | | | | | | 94,340 | | | | | | | | | | | | 83,642 | | | | | | | | | |
Total liabilities and stockholders' equity | | $ | 1,018,667 | | | | | | | | | | | $ | 1,021,742 | | | | | | | | | | | $ | 997,892 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and margin (tax-equivalent) | | | | | | $ | 8,121 | | | | 3.36 | % | | | | | | $ | 7,995 | | | | 3.33 | % | | | | | | $ | 7,641 | | | | 3.21 | % |
(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 21%, in adjusting interest on tax-exempt loans 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 $(27.4), $(26.2), and $(31.0) million for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. |
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Reports Third Quarter Net Earnings/page 7
Average Balances and Net Interest Income Analysis (1)
| | Nine months ended September 30, | |
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| | | | | | 2026 | | | | | | | | | | | 2025 | | | | | |
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| | | | | | Interest | | | | | | | | | | | Interest | | | | | |
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| | Average | | | Income/ | | | Yield/ | | | Average | | | Income/ | | | Yield/ | |
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(Dollars in thousands) | | Balance | | | Expense | | | Rate | | | Balance | | | Expense | | | Rate | |
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Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and loans held for sale (2) (3) | | $ | 580,128 | | | $ | 24,681 | | | | 5.69 | % | | $ | 560,946 | | | $ | 23,161 | | | | 5.52 | % |
Securities (3) (4) | | | 264,561 | | | | 4,067 | | | | 2.06 | % | | | 274,068 | | | | 4,010 | | | | 1.96 | % |
Federal funds sold | | | 26,288 | | | | 708 | | | | 3.60 | % | | | 26,717 | | | | 875 | | | | 4.38 | % |
Interest-bearing bank deposits | | | 92,376 | | | | 2,567 | | | | 3.72 | % | | | 76,254 | | | | 2,541 | | | | 4.46 | % |
Total interest-earning assets | | | 963,353 | | | $ | 32,023 | | | | 4.44 | % | | | 937,985 | | | $ | 30,587 | | | | 4.36 | % |
Cash and due from banks | | | 13,685 | | | | | | | | | | | | 15,864 | | | | | | | | | |
Other assets (5) | | | 45,125 | | | | | | | | | | | | 38,086 | | | | | | | | | |
Total assets | | $ | 1,022,163 | | | | | | | | | | | $ | 991,935 | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
NOW | | $ | 219,724 | | | $ | 2,004 | | | | 1.22 | % | | $ | 202,381 | | | $ | 2,042 | | | | 1.35 | % |
Savings and money market | | | 267,035 | | | | 1,895 | | | | 0.95 | % | | | 254,095 | | | | 1,910 | | | | 1.01 | % |
Time deposits | | | 182,626 | | | | 4,175 | | | | 3.06 | % | | | 185,355 | | | | 4,470 | | | | 3.22 | % |
Total interest-bearing deposits | | | 669,385 | | | | 8,074 | | | | 1.61 | % | | | 641,831 | | | | 8,422 | | | | 1.75 | % |
Short-term borrowings | | | 44 | | | | 1 | | | | 3.04 | % | | | 37 | | | | 1 | | | | 3.61 | % |
Total interest-bearing liabilities | | | 669,429 | | | $ | 8,075 | | | | 1.61 | % | | | 641,868 | | | $ | 8,423 | | | | 1.75 | % |
Noninterest-bearing deposits | | | 256,347 | | | | | | | | | | | | 265,274 | | | | | | | | | |
Other liabilities | | | 3,057 | | | | | | | | | | | | 2,512 | | | | | | | | | |
Stockholders' equity | | | 93,330 | | | | | | | | | | | | 82,281 | | | | | | | | | |
Total liabilities and stockholders' equity | | $ | 1,022,163 | | | | | | | | | | | $ | 991,935 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and margin (tax-equivalent) | | | | | | $ | 23,948 | | | | 3.32 | % | | | | | | $ | 22,164 | | | | 3.16 | % |
(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 21%, in adjusting interest on tax-exempt loans 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 $(26.5) and $(34.8) million for the nine months ended September 30, 2026 and 2025, respectively. |
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Reports Third Quarter Net Earnings/page 8
Reconciliation of GAAP to non-GAAP Measures (unaudited):
| | Quarters Ended | | | Nine months ended | |
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| | September 30, | | | June 30, | | | September 30, | | | September 30, | | | September 30, | |
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(Dollars in thousands, except per share amounts) | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net interest income, as reported (GAAP) | | $ | 8,014 | | | $ | 7,888 | | | $ | 7,572 | | | $ | 23,635 | | | $ | 21,961 | |
Tax-equivalent adjustment | | | 107 | | | | 107 | | | | 69 | | | | 313 | | | | 203 | |
Net interest income (tax-equivalent) | | $ | 8,121 | | | $ | 7,995 | | | $ | 7,641 | | | $ | 23,948 | | | $ | 22,164 | |