Auburn National Bancorporation (AUBN) Q2 2025 earnings summary

Executive summary

• Net earnings for the first six months of 2025 were $3.4 million ($0.96 per share), up from $3.1 million ($0.89) year-over-year; Q2 2025 net earnings were $1.8 million ($0.52 per share), up from $1.7 million ($0.50) in Q2 2024.

• Net interest income increased 8% year-over-year to $14.4 million for the first half of 2025, with Q2 2025 at $7.4 million, up from $6.7 million in Q2 2024.

• Noninterest income declined to $1.5 million for the first half, mainly due to lower mortgage lending, but was $0.8 million in Q2 2025, down from $0.9 million in Q2 2024.

• Noninterest expense rose to $11.6 million for the first half, primarily from higher salaries and benefits, but decreased 3% sequentially in Q2 2025.

• Management highlighted strong credit quality and improved net interest margin despite slower loan demand.

Financial highlights

• Net interest margin (tax-equivalent) improved to 3.24% for the first six months and 3.27% in Q2 2025, up from 3.05% and 3.06% year-over-year.

• Allowance for credit losses was $7.0 million (1.24% of total loans) at June 30, 2025.

• Total loans were $562.7 million at June 30, 2025, slightly down from $564.0 million at December 31, 2024.

• Total deposits increased 5% to $939.9 million at June 30, 2025, with noninterest-bearing deposits comprising 30%.

• Book value per share rose to $24.64 at June 30, 2025, from $21.53 a year earlier.

Outlook and guidance

• Management expects continued competitive deposit pricing and a challenging rate environment for the remainder of 2025.

• Asset-liability management strategies will focus on managing deposit costs and repricing assets to support net interest margin.

• Capital and liquidity remain strong, positioning the company to meet customer needs and support growth.