Auburn National Bancorporation reported first‑quarter 2026 net earnings of $2.2 million, or $0.63 per share, up from $1.7 million ($0.48) in the fourth quarter of 2025 and $1.5 million ($0.44) in the first quarter of 2025, marking a clear sequential and year‑over‑year improvement.
Net interest income rose to $7.8 million, and the net interest margin improved to 3.28% from 3.24% in the prior quarter. The 12% annualized loan growth, driven by robust demand for mortgage and commercial lending, underpins the margin expansion and supports the higher interest income.
Asset quality remained strong: the non‑performing asset ratio was 0.01% of $0.1 million as of March 31 2026, and charge‑offs increased to $402 k, largely due to a single fully charged‑off loan. The allowance for credit losses fell to $6.8 million from $7.2 million at the end of 2025, reflecting a CECL refinement that lowered expected losses on municipal loans.
Capital ratios stayed well above regulatory thresholds, with a common equity tier 1 ratio of 16.06% and a tier 1 leverage ratio of 10.71%. The bank also paid a dividend of $0.27 per share, continuing its 31‑year streak of consistent dividend payments and supporting shareholder returns while funding its ongoing digital‑transformation roadmap.
"Our first‑quarter results reflect strong revenue growth as net interest income and mortgage lending income both improved. Although net charge‑offs increased during the quarter, primarily due to one non‑performing 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 12%.", David A. Hedges, President and CEO.
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