Financial Performance - Net interest income for the quarter ended March 31, 2024, was $6,657 thousand, a decrease of 6.34% from $7,109 thousand in the same quarter of 2023[9] - Net earnings for the quarter were $1,371 thousand, down 30.06% from $1,964 thousand year-over-year[9] - Comprehensive loss for the quarter was $813 thousand, a decline from a comprehensive income of $7,427 thousand in the same quarter of the previous year[13] - Net earnings for the quarter ended March 31, 2024, were $1,371,000, a decrease of 30% compared to $1,964,000 for the same period in 2023[17] - Basic and diluted earnings per share were $0.39 for Q1 2024, down from $0.56 in Q1 2023, reflecting a 30% decline[102] - Net interest income (tax-equivalent) decreased by 7% to $6.7 million in Q1 2024 from $7.2 million in Q1 2023, primarily due to a smaller balance sheet and decreased net interest margin[103] - The company's net interest margin (tax-equivalent) was 3.04% in Q1 2024, down from 3.17% in Q1 2023, attributed to increased cost of funds[103] - Total revenue for Q1 2024 was $7,544,000, up from $630,000 in Q4 2023, indicating a significant increase[178] Asset and Deposit Growth - Total assets increased to $979,039 thousand as of March 31, 2024, compared to $975,255 thousand at December 31, 2023, reflecting a growth of 0.08%[7] - Total deposits rose to $899,673 thousand as of March 31, 2024, compared to $896,243 thousand at the end of 2023, marking a slight increase of 0.16%[7] - Total deposits increased to $899.7 million at March 31, 2024, from $896.2 million at December 31, 2023[140] - Total assets as of March 31, 2024, were $976,930,000, a decrease from $1,022,938,000 as of December 31, 2023[180] Credit Losses and Provisions - Provision for credit losses increased to $334 thousand in Q1 2024, compared to $66 thousand in Q1 2023, indicating a significant rise in credit risk assessment[9] - The allowance for credit losses stood at $7,215 thousand as of March 31, 2024, compared to $6,863 thousand at December 31, 2023, indicating a proactive approach to potential loan defaults[7] - The provision for credit losses increased significantly to $334,000 from $66,000 year-over-year[17] - The total provision for credit losses for loans was $285 million for the quarter ended March 31, 2024, compared to $40 million for the same quarter in 2023[68] - The allowance for credit losses was $7.2 million, or 1.27% of total loans, compared to $6.8 million, or 1.35% of total loans, in Q1 2023[104] Noninterest Income and Expenses - Noninterest income for the quarter was $887 thousand, up 11.98% from $792 thousand in the same quarter of 2023[9] - Total noninterest expense increased to $5,675 thousand in Q1 2024, compared to $5,604 thousand in Q1 2023, reflecting a rise of 1.27%[9] - Noninterest income was $0.9 million in Q1 2024, slightly up from $0.8 million in Q1 2023[105] - Noninterest expense rose to $5.7 million in Q1 2024 from $5.6 million in Q1 2023, primarily due to routine salary and benefits increases[106] Loan Portfolio - Total loans increased to $567.5 million as of March 31, 2024, up from $557.3 million at December 31, 2023, representing a growth of approximately 2.1%[45] - Loans secured by real estate constituted approximately 84.2% of the total loan portfolio as of March 31, 2024[45] - The commercial real estate segment totaled $300,484,000 as of March 31, 2024, up from $287,307,000 at December 31, 2023, reflecting an increase of approximately 4.2%[53] - The residential real estate loans reached $118,240,000 as of March 31, 2024, compared to $117,457,000 at the end of 2023, showing a growth of about 0.7%[53] - The commercial and industrial loans increased to $78,920,000 as of March 31, 2024, from $73,374,000 at December 31, 2023, marking a growth of about 7.6%[53] Dividends and Stockholder Equity - The company declared cash dividends of $0.27 per share, totaling $943 thousand for the quarter ended March 31, 2024[14] - The Company's consolidated stockholders' equity decreased to $74.5 million as of March 31, 2024, from $76.5 million at December 31, 2023[147] - The Company paid cash dividends of $0.27 per share for both the first quarter of 2024 and the first quarter of 2023[148] Liquidity and Capital Ratios - The Company believes it has adequate sources of liquidity to meet all known contractual obligations and unfunded commitments over the next twelve months[163] - The Bank's capital conservation buffer was 7.69% at March 31, 2024, indicating a strong capital position[150] - The Company's total risk-based capital ratio was 15.69% at March 31, 2024, well above the minimum required to be "well capitalized"[107] Market Conditions and Economic Factors - The yield curve was inverted as of March 31, 2024, affecting the spread between costs of funds and interest income[172] - The Federal Reserve raised the target federal funds rate to 5.25-5.50% as of July 26, 2023, with potential further increases if inflation remains elevated[173]
Auburn National Bancorporation(AUBN) - 2024 Q1 - Quarterly Report