Auburn National Bancorporation, Inc. Reports First Quarter Net Earnings
Rhea-AI Summary
Auburn National Bancorporation (Nasdaq: AUBN) reported first quarter 2026 net earnings of $2.2 million or $0.63 per share, versus $1.5 million, or $0.44 per share, in 1Q 2025. Net interest income rose to $7.8 million and NIM increased 19 bps to 3.28%.
Annualized loan growth was 12%, ROA improved to 0.86%, nonperforming assets fell to 0.01% of assets, and the allowance for credit losses was $6.8 million (1.16%) after a CECL segmentation change.
Positive
- EPS +43% YoY to $0.63
- Net interest income +10% YoY to $7.8M
- Net interest margin +19 bps to 3.28%
- Annualized loan growth of 12%
Negative
- Net charge-offs rose to $402k (0.28% annualized)
- Allowance for credit losses decreased to $6.8M (1.16%) after CECL change
- One individually evaluated loan was fully charged-off during the quarter
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 26 | Board expansion | Positive | +4.4% | Expanded board to 12 members and elected new director Jeff Evans. |
| Mar 17 | Buyback authorization | Positive | +5.3% | Authorized up to $5M common stock repurchase through March 2027. |
| Feb 10 | Dividend declared | Positive | +1.5% | Declared quarterly cash dividend of $0.27 per share. |
| Jan 27 | Earnings results | Positive | +3.7% | Reported higher 2025 net income, EPS, and record net interest income. |
| Nov 12 | Dividend declared | Positive | -0.4% | Announced $0.27 per share cash dividend for Q4 2025. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent corporate actions and financial updates have mostly seen positive price reactions, indicating the stock has tended to align with constructive news, with only one minor divergence on a dividend announcement.
Over the past six months, Auburn National has reported steadily improving fundamentals and shareholder-focused actions. Q4 2025 results on Jan 27 highlighted higher EPS and net interest income with a 3.27% net interest margin, followed by recurring $0.27 dividends in November 2025 and February 2026. A $5M repurchase authorization on Mar 17, 2026 and the election of a new director on Mar 26, 2026 also drew positive reactions. Today’s Q1 2026 earnings continue that trajectory of margin and earnings improvement.
Key Terms
net interest income financial
net interest margin financial
nonperforming assets financial
net charge-offs financial
allowance for credit losses financial
current expected credit losses financial
provision for credit losses financial
effective tax rate financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter 2026 vs. First Quarter 2025 Highlights:
- Earnings per share increased
43% - Net interest income increased
10% - Net interest margin (tax-equivalent) increased 19 basis points to
3.28% - Controlled expenses – noninterest expense largely unchanged
- Return on assets (annualized) improved to
0.86% , compared to0.62% in 1Q 2025 - Nonperforming assets decreased to
0.01% of total assets
AUBURN, Ala., April 28, 2026 (GLOBE NEWSWIRE) -- Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of
“Our first quarter results reflect strong revenue growth as net interest income and mortgage lending income both improved,” said David A. Hedges, President and CEO. “Although net charge-offs increased during the quarter, primarily due to one nonperforming loan that was fully charged-off, our asset quality, capital, and liquidity remain strong and we’re encouraged to report first quarter annualized loan growth of
Net interest income (tax-equivalent) was
Net interest margin (tax-equivalent) was
Nonperforming assets were
Net charge-offs were
At March 31, 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 first quarter of 2026 was
At March 31, 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 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, 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) | Quarter ended | ||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2025 | 2025 | ||||||||||
| Results of Operations | |||||||||||||
| Net interest income (a) | $ | 7,832 | 7,780 | 7,112 | |||||||||
| Less: tax-equivalent adjustment | 99 | 67 | 67 | ||||||||||
| Net interest income (GAAP) | 7,733 | 7,713 | 7,045 | ||||||||||
| Noninterest income | 893 | 754 | 747 | ||||||||||
| Total revenue | 8,626 | 8,467 | 7,792 | ||||||||||
| Provision for credit losses | (76 | ) | 783 | (10 | ) | ||||||||
| Noninterest expense | 5,901 | 5,563 | 5,880 | ||||||||||
| Income tax expense | 603 | 456 | 392 | ||||||||||
| Net earnings | $ | 2,198 | 1,665 | 1,530 | |||||||||
| Per share data: | |||||||||||||
| Basic and diluted net earnings | $ | 0.63 | 0.48 | 0.44 | |||||||||
| Cash dividends declared | $ | 0.27 | 0.27 | 0.27 | |||||||||
| Weighted average shares outstanding - basic | 3,494,229 | 3,493,699 | 3,493,699 | ||||||||||
| Weighted average shares outstanding - diluted | 3,496,518 | 3,496,729 | 3,493,699 | ||||||||||
| Shares outstanding, at period end | 3,495,866 | 3,493,699 | 3,493,699 | ||||||||||
| Stockholders' equity (book value) | $ | 26.62 | 26.35 | 23.79 | |||||||||
| Common stock price: | |||||||||||||
| High | $ | 26.50 | 27.98 | 23.37 | |||||||||
| Low | 21.01 | 24.00 | 20.36 | ||||||||||
| Period-end | 23.87 | 26.95 | 21.59 | ||||||||||
| To earnings ratio (c) | 10.52 | x | 12.96 | 11.42 | |||||||||
| To book value | 90 | % | 102 | 91 | |||||||||
| Performance ratios: | |||||||||||||
| Return on average equity (annualized) | 9.65 | % | 7.40 | 7.83 | |||||||||
| Return on average assets (annualized) | 0.86 | % | 0.66 | 0.62 | |||||||||
| Dividend payout ratio | 42.86 | % | 56.25 | 61.36 | |||||||||
| Other financial data: | |||||||||||||
| Net interest margin (a) | 3.28 | % | 3.24 | 3.09 | |||||||||
| Effective income tax rate | 21.53 | % | 21.50 | 20.40 | |||||||||
| Efficiency ratio (b) | 67.63 | % | 65.19 | 74.82 | |||||||||
| Asset Quality: | |||||||||||||
| Nonperforming assets: | |||||||||||||
| Nonperforming (nonaccrual) loans | $ | 102 | 482 | 520 | |||||||||
| Total nonperforming assets | $ | 102 | 482 | 520 | |||||||||
| Net charge-offs | $ | 402 | 304 | 64 | |||||||||
| Allowance for credit losses as a % of: | |||||||||||||
| Loans | 1.16 | % | 1.27 | 1.20 | |||||||||
| Nonperforming loans | 6,643 | % | 1,489 | 1,298 | |||||||||
| Nonperforming assets as a % of: | |||||||||||||
| Loans and other real estate owned | 0.02 | % | 0.09 | 0.09 | |||||||||
| Total assets | 0.01 | % | 0.05 | 0.05 | |||||||||
| Nonperforming loans as a % of total loans | 0.02 | % | 0.09 | 0.09 | |||||||||
| Annualized net charge-offs as a % of average loans | 0.28 | % | 0.22 | 0.05 | |||||||||
| Selected average balances: | |||||||||||||
| Loans, net of unearned income | $ | 577,489 | 559,009 | 566,082 | |||||||||
| Total assets | 1,026,163 | 1,009,953 | 987,272 | ||||||||||
| Total deposits | 930,474 | 917,178 | 906,805 | ||||||||||
| Total stockholders' equity | 91,088 | 90,000 | 78,158 | ||||||||||
| Selected period end balances: | |||||||||||||
| Loans, net of unearned income | $ | 582,040 | 565,354 | 560,650 | |||||||||
| Allowance for credit losses | 6,776 | 7,176 | 6,750 | ||||||||||
| Total assets | 1,026,946 | 1,018,797 | 996,786 | ||||||||||
| Total deposits | 931,109 | 922,926 | 910,503 | ||||||||||
| Total stockholders' equity | 93,061 | 92,053 | 83,115 | ||||||||||
| (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 | |||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 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) | $ | 577,847 | $ | 8,014 | 5.62 | % | $ | 559,084 | $ | 7,877 | 5.59 | % | $ | 566,267 | $ | 7,592 | 5.44 | % | |||||||||||||||
| Securities (3) (4) | 256,565 | 1,241 | 1.96 | % | 262,132 | 1,284 | 1.94 | % | 280,061 | 1,367 | 1.98 | % | |||||||||||||||||||||
| Federal funds sold | 24,352 | 216 | 3.60 | % | 25,995 | 252 | 3.85 | % | 26,865 | 291 | 4.39 | % | |||||||||||||||||||||
| Interest bearing bank deposits | 108,509 | 989 | 3.70 | % | 105,589 | 1,038 | 3.90 | % | 61,235 | 678 | 4.49 | % | |||||||||||||||||||||
| Total interest-earning assets | 967,273 | $ | 10,460 | 4.39 | % | 952,800 | $ | 10,451 | 4.35 | % | 934,428 | $ | 9,928 | 4.31 | % | ||||||||||||||||||
| Cash and due from banks | 14,153 | 14,081 | 18,077 | ||||||||||||||||||||||||||||||
| Other assets (5) | 44,737 | 43,072 | 34,767 | ||||||||||||||||||||||||||||||
| Total assets | $ | 1,026,163 | $ | 1,009,953 | $ | 987,272 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||||
| NOW | $ | 236,218 | $ | 779 | 1.34 | % | $ | 216,545 | $ | 698 | 1.28 | % | $ | 209,222 | $ | 743 | 1.44 | % | |||||||||||||||
| Savings and money market | 257,214 | 473 | 0.75 | % | 252,403 | 552 | 0.87 | % | 242,701 | 502 | 0.84 | % | |||||||||||||||||||||
| Time deposits | 179,947 | 1,376 | 3.10 | % | 180,163 | 1,420 | 3.13 | % | 190,895 | 1,571 | 3.34 | % | |||||||||||||||||||||
| Total interest-bearing deposits | 673,379 | 2,628 | 1.58 | % | 649,111 | 2,670 | 1.63 | % | 642,818 | 2,816 | 1.78 | % | |||||||||||||||||||||
| Short-term borrowings | — | — | — | 1 | 1 | NM | — | — | — | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 673,379 | $ | 2,628 | 1.58 | % | 649,112 | $ | 2,671 | 1.63 | % | 642,818 | $ | 2,816 | 1.78 | % | ||||||||||||||||||
| Noninterest-bearing deposits | 257,095 | 268,067 | 263,987 | ||||||||||||||||||||||||||||||
| Other liabilities | 4,601 | 2,774 | 2,309 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 91,088 | 90,000 | 78,158 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,026,163 | $ | 1,009,953 | $ | 987,272 | |||||||||||||||||||||||||||
| Net interest income and margin (tax-equivalent) | $ | 7,832 | 3.28 | % | $ | 7,780 | 3.24 | % | $ | 7,112 | 3.09 | % | |||||||||||||||||||||
| (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 March 31, 2025, respectively. | |||||||||||||||||||||||||||||||||
| Reconciliation of GAAP to non-GAAP Measures (unaudited): | ||||||||||
| Quarter ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| (Dollars in thousands, except per share amounts) | 2026 | 2025 | 2025 | |||||||
| Net interest income, as reported (GAAP) | $ | 7,733 | 7,713 | 7,045 | ||||||
| Tax-equivalent adjustment | 99 | 67 | 67 | |||||||
| Net interest income (tax-equivalent) | $ | 7,832 | 7,780 | 7,112 | ||||||
For additional information, contact:
David A. Hedges
President and CEO
(334) 821-9200
