Auburn National Bancorporation, Inc. Reports Third Quarter Net Earnings

Core Insights - Auburn National Bancorporation, Inc. reported net earnings of $2.2 million, or $0.64 per share, for Q3 2025, showing an increase from $1.8 million, or $0.52 per share, in Q2 2025 and $1.7 million, or $0.50 per share, in Q3 2024 [2][4][11] - The company achieved a net interest income of $7.6 million in Q3 2025, up from $7.4 million in Q2 2025 and $6.8 million in Q3 2024, attributed to growth in average interest-earning assets and improved net interest margin [4][11] - Nonperforming assets decreased to $0.1 million, or 0.01% of total assets, at September 30, 2025, compared to $0.3 million, or 0.03%, at June 30, 2025, and $0.8 million, or 0.08%, at September 30, 2024, indicating strong credit quality [6][11] Financial Performance - Net interest margin (tax-equivalent) improved to 3.30% in Q3 2025 from 3.27% in Q2 2025 and 3.05% in Q3 2024, primarily due to better yields on interest-earning assets and a decrease in the cost of interest-bearing deposits [5][11] - The company recorded a negative provision for credit losses of $255 thousand in Q3 2025, compared to a charge of $113 thousand in Q2 2025 and a negative provision of $127 thousand in Q3 2024 [7][11] - Noninterest income remained stable at $0.8 million for Q3 2025, unchanged from both Q2 2025 and Q3 2024 [8][11] Expense and Taxation - Noninterest expense increased to $5.8 million in Q3 2025 from $5.7 million in Q2 2025 and $5.5 million in Q3 2024, primarily due to higher salaries and benefits [9][11] - The provision for income tax expense was $0.6 million for Q3 2025, compared to $0.5 million for both Q2 2025 and Q3 2024 [10][11] - The effective tax rate for Q3 2025 was 21.86%, slightly higher than 20.92% in Q2 2025 and lower than 23.46% in Q3 2024 [12][11] Asset and Equity Position - Total assets were reported at $1.0 billion as of September 30, 2025, consistent with June 30, 2025, and an increase from $990.1 million at September 30, 2024 [13][11] - The company's allowance for credit losses was $6.7 million, or 1.20% of total loans, at September 30, 2025, down from $7.0 million, or 1.24%, at June 30, 2025 [8][11] - Stockholders' equity increased to $89.6 million, or $25.65 per share, at September 30, 2025, compared to $86.1 million, or $24.64 per share, at June 30, 2025 [14][11]