Auburn National Bancorporation (AUBN) Q3 2024 earnings summary

Executive summary

• Net earnings for the first nine months of 2024 were $4.8 million ($1.38 per share), down from $5.4 million ($1.54 per share) in 2023.

• Q3 2024 net earnings were $1.7 million ($0.50 per share), up from $1.5 million ($0.43 per share) in Q3 2023 and flat from Q2 2024.

• Balance sheet repositioning and loan growth drove improvements in net interest income and margin year-over-year.

• Noninterest income increased to $2.6 million for the nine months, mainly from higher mortgage lending and fees.

• Closure of the Corner Village branch by year-end is expected to yield cost savings in 2025.

Financial highlights

• Total assets at September 30, 2024 were $990.1 million, up from $975.3 million at year-end 2023.

• Loans grew 2% to $565.7 million from $557.3 million at year-end; average loans grew 8% year-over-year to $571.7 million in Q3 2024.

• Net interest margin improved to 3.05% in Q3 2024 from 2.73% in Q3 2023.

• Book value per share increased to $24.14 at September 30, 2024, from $17.59 a year earlier.

• Allowance for credit losses was 1.22% of loans at quarter-end, unchanged from year-end.

Outlook and guidance

• Management expects a challenging rate environment to persist through 2024, with continued pressure on deposit costs and net interest margin.

• Cost savings from the planned branch closure are expected to begin in 2025.

• Asset-liability management strategies are in place to manage interest rate risk and deposit competition.

• The company believes it has adequate liquidity and capital to meet obligations and support growth.

• Forward-looking statements highlight risks from interest rate changes, economic conditions, and regulatory actions.