Auburn National Bancorporation, Inc. Reports Second Quarter Net Earnings
Auburn National Bancorporation (AUBN) reported net earnings of $1.7 million, or $0.50 per share, for Q2 2024, up from $1.4 million in Q1 2024 but down from $1.9 million in Q2 2023. Key highlights include:
- Total revenue increased 1%
- Net interest margin improved 2 basis points to 3.06%
- Average loans grew 9% annualized
- Strong credit quality with nonperforming assets at 0.08% of total assets
- Noninterest expense decreased 3%
The company reported solid loan growth, stable net interest margin, and continued strength in credit quality, liquidity, and capital. However, the interest rate environment is expected to remain challenging in H2 2024.
Auburn National Bancorporation (AUBN) ha riportato un utile netto di 1,7 milioni di dollari, pari a 0,50 dollari per azione, per il secondo trimestre del 2024, in aumento rispetto ai 1,4 milioni di dollari del primo trimestre del 2024, ma in calo rispetto ai 1,9 milioni di dollari del secondo trimestre del 2023. I punti salienti includono:
- Aumento del fatturato totale dell'1%
- Il margine d'interesse netto è migliorato di 2 punti base, raggiungendo il 3,06%
- Crescita dei prestiti medi del 9% su base annua
- Elevata qualità del credito con attività non performanti allo 0,08% del totale delle attività
- Le spese non di interesse sono diminuite del 3%
L'azienda ha registrato una solida crescita dei prestiti, un margine d'interesse netto stabile e una continua solidità nella qualità del credito, liquidità e capitale. Tuttavia, si prevede che l'ambiente dei tassi d'interesse rimanga sfidante nel secondo semestre del 2024.
Auburn National Bancorporation (AUBN) reportó ganancias netas de 1,7 millones de dólares, o 0,50 dólares por acción, para el segundo trimestre de 2024, un aumento respecto a los 1,4 millones de dólares del primer trimestre de 2024, pero una disminución en comparación con los 1,9 millones de dólares del segundo trimestre de 2023. Los puntos destacados incluyen:
- Ingresos totales aumentaron un 1%
- El margen de interés neto mejoró en 2 puntos base, alcanzando el 3,06%
- Préstamos promedio crecieron un 9% anualizado
- Fuerte calidad crediticia con activos no rentables en el 0,08% del total de activos
- Los gastos no relacionados con intereses disminuyeron un 3%
La compañía reportó un sólido crecimiento de préstamos, un margen de interés neto estable y una continuidad en la fortaleza de la calidad del crédito, liquidez y capital. Sin embargo, se espera que el entorno de tasas de interés siga siendo desafiante en la segunda mitad de 2024.
Auburn National Bancorporation (AUBN)은 2024년 2분기에 170만 달러의 순이익, 즉 주당 0.50 달러를 보고했으며, 이는 2024년 1분기의 140만 달러에서 증가했지만 2023년 2분기의 190만 달러보다는 감소한 수치입니다. 주요 사항은 다음과 같습니다:
- 총 수익이 1% 증가함
- 순이자 마진이 3.06%로 2bp 개선됨
- 평균 대출이 연율 기준으로 9% 성장함
- 총 자산의 0.08%에 해당하는 비수익 자산을 가진 강한 신용 품질
- 비이자 비용이 3% 감소함
회사는 대출 성장, 안정적인 순이자 마진 및 신용 품질, 유동성 및 자본의 지속적인 강함을 보고했습니다. 그러나 2024년 하반기에도 금리 환경은 도전적일 것으로 예상됩니다.
Auburn National Bancorporation (AUBN) a annoncé un bénéfice net de 1,7 million de dollars, soit 0,50 dollar par action, pour le deuxième trimestre 2024, en hausse par rapport à 1,4 million de dollars au premier trimestre 2024, mais en baisse par rapport à 1,9 million de dollars au deuxième trimestre 2023. Les points saillants comprennent :
- Les revenus totaux ont augmenté de 1%
- La marge d'intérêt nette s'est améliorée de 2 points de base pour atteindre 3,06%
- Les prêts moyens ont augmenté de 9% annualisés
- Une forte qualité de crédit avec des actifs non performants représentant 0,08% des actifs totaux
- Les dépenses non liées aux intérêts ont diminué de 3%
L'entreprise a rapporté une solide croissance des prêts, une marge d'intérêt nette stable et une force continue dans la qualité du crédit, la liquidité et le capital. Cependant, il est prévu que l'environnement des taux d'intérêt reste difficile au second semestre 2024.
Auburn National Bancorporation (AUBN) hat für das 2. Quartal 2024 einen Nettogewinn von 1,7 Millionen Dollar, das entspricht 0,50 Dollar pro Aktie, gemeldet, was einen Anstieg gegenüber 1,4 Millionen Dollar im 1. Quartal 2024, aber einen Rückgang im Vergleich zu 1,9 Millionen Dollar im 2. Quartal 2023 darstellt. Zu den besonderen Highlights gehören:
- Der Gesamterlös stieg um 1%
- Die Nettozinsmarge verbesserte sich um 2 Basispunkte auf 3,06%
- Durchschnittliche Kredite wuchsen um 9% annualisiert
- Starke Kreditqualität mit notleidenden Anlagen von 0,08% der Gesamtanlagen
- Die sonstigen Aufwendungen sanken um 3%
Das Unternehmen meldete ein solides Kreditwachstum, eine stabile Nettozinsmarge und eine anhaltende Stärke in der Kreditqualität, der Liquidität und dem Kapital. Es wird jedoch erwartet, dass das Zinsumfeld im 2. Halbjahr 2024 herausfordernd bleibt.
- Net earnings increased to $1.7 million in Q2 2024 from $1.4 million in Q1 2024
- Total revenue increased by 1%
- Net interest margin improved by 2 basis points to 3.06%
- Average loans grew by 9% annualized
- Nonperforming assets decreased to 0.08% of total assets
- Noninterest expense decreased by 3%
- Loans, net of unearned income, increased to $578.1 million from $567.5 million in Q1 2024
- Total deposits increased to $946.4 million from $899.7 million in Q1 2024
- Book value per share increased to $21.53 from $21.32 in Q1 2024
- Net earnings decreased compared to $1.9 million in Q2 2023
- Net interest income (tax-equivalent) decreased by $0.3 million or 4% compared to Q2 2023
- The company expects the interest rate environment to remain challenging in H2 2024
- TCE ratio decreased to 7.34% from 7.61% in Q1 2024
Insights
The financial performance of Auburn National Bancorporation for the second quarter of 2024 indicates robust stability and growth. The net earnings increase to $1.7 million from $1.4 million in the first quarter and a slight decrease from $1.9 million in the same quarter last year, reveals cautious optimism. The net interest margin of 3.06%, though a minor improvement from previous quarters, underscores effective asset management strategies against rising interest costs.
Notably, the annualized growth in average loans of 9% highlights successful loan acquisition and retention strategies. Additionally, the negative provision for credit losses of $0.1 million is a positive signal of credit risk reduction. The noninterest expense decrease by 3% further enhances profitability, attributed to strategic cost management. Investors should consider these metrics as indicators of sound financial health and operational efficiency.
From a market perspective, Auburn National Bancorporation's quarterly results provide confidence in their resilience amidst a challenging interest rate environment. The 1% increase in total revenue combined with an improved net interest margin suggests effective adaptation to market conditions. The steady increase in deposits, despite a previous decline, reflects restored customer trust and liquidity.
The decrease in nonperforming assets to 0.08% of total assets and the 1.24% allowance for credit losses further bolster the company's strong credit quality. These factors collectively suggest a stable and growing financial institution capable of sustaining investor value even as market conditions evolve. Retail investors might find the firm's strategic focus on loan growth and expense reduction particularly appealing for long-term investment potential.
Second Quarter 2024 Highlights(1):
- Net earnings of
$1.7 million , or$0.50 per share, compared to$1.4 million , or$0.39 per share
- Total revenue increased
1%
- Net interest margin (tax-equivalent) improved 2 basis points to
3.06%
- Annualized growth of average loans of
9%
- Negative provision for credit losses of
$0.1 million
- Strong credit quality – Nonperforming assets to total assets were
0.08%
- Noninterest expense decreases
3% , primarily due to reductions in occupancy expense
AUBURN, Ala., July 23, 2024 (GLOBE NEWSWIRE) -- Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of
“The Company’s second quarter results reflect solid loan growth, a stable and improved net interest margin, decreased expenses and continued strength in our credit quality, liquidity, and capital,” said David A. Hedges, President and CEO. “While we expect the interest rate environment will remain challenging in the second half of 2024, we are encouraged by the economic strength of our local markets and continue to see opportunities for loan growth,” continued Mr. Hedges.
Net interest income (tax-equivalent) was
Net interest margin (tax-equivalent) was
Nonperforming assets were
The Company recorded a negative provision for credit losses of
At June 30, 2024, the Company’s allowance for credit losses was
Noninterest income was
Noninterest expense was
Total assets were
At June 30, 2024, the Company's consolidated stockholders' equity (book value) was
The Company’s tangible common equity (“TCE”) ratio or total equity to total assets ratio 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, including, without limitation, statements about future financial and operating results, costs and revenues, the continuing effects of the COVID-19 pandemic and related government, Federal Reserve monetary and regulatory actions, including the continuing effects of pandemic-related economic stimulus and economic conditions generally and in our markets, 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 margin, yields on earning assets, the market values and performance of securities held, effects of inflation, including Federal Reserve monetary policies which were tightened in response to inflation beginning in 2022 through increases in the target federal funds rate and reductions in the Federal Reserve’s Treasury and mortgage-backed securities holdings, interest rates (generally and those applicable to our assets and liabilities) and changes in our asset values, especially investment securities, as a result of interest rate changes, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including the continuing effects of the application of the new CECL accounting standard adopted on January 1, 2023 and our CECL models, including possible adjustments to the fair values of securities available for sale in lieu of other-than-temporary impairments, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends, as well as statements with respect to our objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.
Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements, 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. 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 risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2023 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.
1 Comparisons noted in the bullet points are for the second quarter 2024 versus the prior quarter (first quarter 2024), unless otherwise specified.
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 amounts) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||||
| Results of Operations | |||||||||||||||||||||||
| Net interest income (a) | $ | 6,728 | $ | 6,677 | $ | 6,994 | $ | 13,405 | $ | 14,211 | |||||||||||||
| Less: tax-equivalent adjustment | 19 | 20 | 106 | 39 | 214 | ||||||||||||||||||
| Net interest income (GAAP) | 6,709 | 6,657 | 6,888 | 13,366 | 13,997 | ||||||||||||||||||
| Noninterest income | 896 | 887 | 791 | 1,783 | 1,583 | ||||||||||||||||||
| Total revenue | 7,605 | 7,544 | 7,679 | 15,149 | 15,580 | ||||||||||||||||||
| Provision for credit losses | (123 | ) | 334 | (362 | ) | 211 | (296 | ) | |||||||||||||||
| Noninterest expense | 5,519 | 5,675 | 5,825 | 11,194 | 11,429 | ||||||||||||||||||
| Income tax expense | 475 | 164 | 288 | 639 | 555 | ||||||||||||||||||
| Net earnings | $ | 1,734 | $ | 1,371 | $ | 1,928 | $ | 3,105 | $ | 3,892 | |||||||||||||
| Per share data: | |||||||||||||||||||||||
| Basic and diluted net earnings: | $ | 0.50 | $ | 0.39 | $ | 0.55 | $ | 0.89 | $ | 1.11 | |||||||||||||
| Cash dividends declared | $ | 0.27 | $ | 0.27 | $ | 0.27 | $ | 0.54 | $ | 0.54 | |||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic and diluted | 3,493,699 | 3,493,663 | 3,500,064 | 3,493,681 | 3,501,098 | ||||||||||||||||||
| Shares outstanding, at period end | 3,493,699 | 3,493,699 | 3,499,412 | 3,493,699 | 3,499,412 | ||||||||||||||||||
| Book value | $ | 21.53 | $ | 21.32 | $ | 20.28 | $ | 21.53 | $ | 20.28 | |||||||||||||
| Common stock price: | |||||||||||||||||||||||
| High | $ | 19.25 | $ | 21.55 | $ | 24.32 | $ | 21.55 | $ | 24.50 | |||||||||||||
| Low | 16.63 | 18.82 | 18.80 | 16.63 | 18.80 | ||||||||||||||||||
| Period-end: | 18.29 | 19.27 | 21.26 | 18.29 | 21.26 | ||||||||||||||||||
| To earnings ratio (c) | 101.61 | x | 83.78 | x | 7.21 | x | 101.61 | x | 7.21 | x | |||||||||||||
| To book value | 85 | % | 90 | % | 105 | % | 85 | % | 105 | % | |||||||||||||
| Performance ratios: | |||||||||||||||||||||||
| Return on average equity (annualized) | 9.63 | % | 7.13 | % | 10.37 | % | 8.34 | % | 10.91 | % | |||||||||||||
| Return on average assets (annualized) | 0.71 | % | 0.56 | % | 0.75 | % | 0.64 | % | 0.76 | % | |||||||||||||
| Dividend payout ratio | 54.00 | % | 69.23 | % | 49.09 | % | 60.67 | % | 48.65 | % | |||||||||||||
| Other financial data: | |||||||||||||||||||||||
| Net interest margin (a) | 3.06 | % | 3.04 | % | 3.03 | % | 3.05 | % | 3.10 | % | |||||||||||||
| Effective income tax rate | 21.50 | % | 10.68 | % | 13.00 | % | 17.07 | % | 12.48 | % | |||||||||||||
| Efficiency ratio (b) | 72.39 | % | 75.03 | % | 74.82 | % | 73.70 | % | 72.36 | % | |||||||||||||
| Asset Quality: | |||||||||||||||||||||||
| Nonperforming assets: | |||||||||||||||||||||||
| Nonperforming (nonaccrual) loans | $ | 794 | $ | 878 | $ | 1,149 | $ | 794 | $ | 1,149 | |||||||||||||
| Total nonperforming assets | $ | 794 | $ | 878 | $ | 1,149 | $ | 794 | $ | 1,149 | |||||||||||||
| Net charge-offs (recoveries) | $ | 9 | $ | (67 | ) | $ | (144 | ) | $ | (58 | ) | $ | (141 | ) | |||||||||
| Allowance for credit losses as a % of: | |||||||||||||||||||||||
| Loans | 1.24 | % | 1.27 | % | 1.27 | % | 1.24 | % | 1.27 | % | |||||||||||||
| Nonperforming loans | 899 | % | 822 | % | 577 | % | 899 | % | 577 | % | |||||||||||||
| Nonperforming assets as a % of: | |||||||||||||||||||||||
| Loans and other real estate owned | 0.14 | % | 0.15 | % | 0.22 | % | 0.14 | % | 0.22 | % | |||||||||||||
| Total assets | 0.08 | % | 0.09 | % | 0.11 | % | 0.08 | % | 0.11 | % | |||||||||||||
| Nonperforming loans as a % of total loans | 0.14 | % | 0.15 | % | 0.22 | % | 0.14 | % | 0.22 | % | |||||||||||||
| Annualized net charge-offs (recoveries) as a % of average loans | 0.01 | % | (0.05 | ) % | (0.11 | ) % | (0.02 | ) % | (0.06 | ) % | |||||||||||||
| Selected average balances: | |||||||||||||||||||||||
| Securities | $ | 258,228 | $ | 267,606 | $ | 402,929 | $ | 262,917 | $ | 402,807 | |||||||||||||
| Loans, net of unearned income | 573,443 | 560,757 | 512,066 | 567,100 | 507,139 | ||||||||||||||||||
| Total assets | 978,107 | 976,930 | 1,022,874 | 977,518 | 1,022,906 | ||||||||||||||||||
| Total deposits | 900,673 | 897,051 | 942,552 | 898,862 | 945,456 | ||||||||||||||||||
| Total stockholders' equity | $ | 72,059 | $ | 76,948 | $ | 74,404 | $ | 74,503 | $ | 71,365 | |||||||||||||
| Selected period end balances: | |||||||||||||||||||||||
| Securities | $ | 254,359 | $ | 260,770 | $ | 394,079 | $ | 254,359 | $ | 394,079 | |||||||||||||
| Loans, net of unearned income | 578,068 | 567,520 | 520,411 | 578,068 | 520,411 | ||||||||||||||||||
| Allowance for credit losses | 7,142 | 7,215 | 6,634 | 7,142 | 6,634 | ||||||||||||||||||
| Total assets | 1,025,054 | 979,039 | 1,026,130 | 1,025,054 | 1,026,130 | ||||||||||||||||||
| Total deposits | 946,405 | 899,673 | 950,742 | 946,405 | 950,742 | ||||||||||||||||||
| Total stockholders' equity | $ | 75,209 | $ | 74,489 | $ | 70,976 | $ | 75,209 | $ | 70,976 | |||||||||||||
| (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 | |||||||||||||||
| (Dollars in thousands, except per share amounts) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||
| Net interest income, as reported (GAAP) | $ | 6,709 | $ | 6,657 | $ | 6,888 | $ | 13,366 | $ | 13,997 | ||||||
| Tax-equivalent adjustment | 19 | 20 | 106 | 39 | 214 | |||||||||||
| Net interest income (tax-equivalent) | $ | 6,728 | $ | 6,677 | $ | 6,994 | $ | 13,405 | $ | 14,211 | ||||||
FAQ
What were Auburn National Bancorporation's (AUBN) Q2 2024 earnings?
How did AUBN's Q2 2024 earnings compare to previous quarters?
What was AUBN's net interest margin in Q2 2024?
How much did AUBN's average loans grow in Q2 2024?
What was AUBN's book value per share as of June 30, 2024?
