Auburn National Bancorporation(AUBN) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This part details the company's unaudited financial statements, management's discussion, market risks, and internal controls ITEM 1. FINANCIAL STATEMENTS This section presents the Company's unaudited consolidated financial statements and notes on accounting policies, securities, loans, and fair value measurements Consolidated Balance Sheets (Unaudited) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total assets | $996,786 | $977,324 | | Cash and cash equivalents | $118,656 | $93,354 | | Securities available-for-sale | $242,468 | $243,012 | | Loans, net | $553,900 | $557,146 | | Total deposits | $910,503 | $895,824 | | Total liabilities | $913,671 | $899,032 | | Total stockholders' equity | $83,115 | $78,292 | Consolidated Statements of Earnings (Unaudited) | Metric | Quarter ended March 31, 2025 (in thousands) | Quarter ended March 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total interest income | $9,861 | $9,229 | | Total interest expense | $2,816 | $2,572 | | Net interest income | $7,045 | $6,657 | | Provision for credit losses | $(10) | $334 | | Noninterest income | $747 | $887 | | Noninterest expense | $5,880 | $5,675 | | Net earnings | $1,530 | $1,371 | | Basic and diluted net earnings per share | $0.44 | $0.39 | Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | Metric | Quarter ended March 31, 2025 (in thousands) | Quarter ended March 31, 2024 (in thousands) | | :------------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net earnings | $1,530 | $1,371 | | Unrealized net holding gain (loss) on securities | $4,236 | $(2,184) | | Comprehensive income (loss) | $5,766 | $(813) | Consolidated Statements of Stockholders' Equity (Unaudited) | Metric | Balance, December 31, 2024 (in thousands) | Balance, March 31, 2025 (in thousands) | Balance, December 31, 2023 (in thousands) | Balance, March 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------- | :------------------------------------- | :---------------------------------------- | :------------------------------------- | | Total stockholders' equity | $78,292 | $83,115 | $76,507 | $74,489 | | Net earnings | N/A | $1,530 | N/A | $1,371 | | Other comprehensive income (loss) | N/A | $4,236 | N/A | $(2,184) | | Cash dividends paid | N/A | $(943) | N/A | $(943) | Consolidated Statements of Cash Flows (Unaudited) | Metric | Quarter ended March 31, 2025 (in thousands) | Quarter ended March 31, 2024 (in thousands) | | :-------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $2,627 | $3,081 | | Net cash provided by (used in) investing activities | $8,939 | $(4,383) | | Net cash provided by financing activities | $13,736 | $2,514 | | Net change in cash and cash equivalents | $25,302 | $1,212 | | Cash and cash equivalents at end of period | $118,656 | $72,581 | Notes to Consolidated Financial Statements (Unaudited) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The Company provides a full range of banking services through its wholly-owned subsidiary, AuburnBank, primarily in Lee County, Alabama, and surrounding areas[15] - Financial statements are prepared in accordance with U.S. GAAP for interim information, requiring management estimates for items such as allowance for credit losses, fair value of financial instruments, and deferred tax assets[16][18] - Revenue recognition for service charges on deposits, ATM and interchange fees, and gains on sales of OREO is based on transaction processing, service period, or transfer of asset control[19][20] NOTE 2: BASIC AND DILUTED NET EARNINGS PER SHARE | Metric | Quarter ended March 31, 2025 | Quarter ended March 31, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net earnings | $1,530 | $1,371 | | Weighted average common shares outstanding | 3,493,699 | 3,493,663 | | Net earnings per share | $0.44 | $0.39 | - There were no dilutive securities or rights outstanding at March 31, 2025, or 2024, resulting in no difference between basic and diluted net earnings per share[22] NOTE 3: SECURITIES | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :---------------------------- | :----------------------------- | | Total available-for-sale (Fair Value) | $242,468 | $243,012 | | Total available-for-sale (Amortized Cost) | $276,347 | $282,548 | | Gross Unrealized Losses | $33,879 | $39,536 | - Unrealized losses on securities are primarily due to changes in interest rates, not credit quality, and no write-down was deemed necessary as the Company does not intend to sell these securities before recovery of their amortized cost basis[29] - The Company had no realized gains or losses on the sale of securities during the quarters ended March 31, 2025, and 2024[30] NOTE 4: LOANS AND ALLOWANCE FOR CREDIT LOSSES | Loan Category | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :---------------------------- | :-----------------------------