Auburn National Q1 Net Earnings Jump 43%, Net Interest Income Rises 10%
Auburn National Bancorporation earned $2.2 million, or $0.63 per share, in Q1, a 43% increase year-over-year driven by a 10% rise in net interest income to $7.8 million and a 19bp margin expansion to 3.28%. Annualized loan growth reached 12%, while nonperforming assets dropped to 0.01% of total assets.
1. Q1 Financial Results
Auburn National reported net earnings of $2.2 million, or $0.63 per share, for the first quarter of 2026, up from $1.5 million, or $0.44 per share, in Q1 2025. Earnings growth was fueled by higher net interest income and stable noninterest expense.
2. Net Interest Income and Margin
Tax-equivalent net interest income rose 10% to $7.8 million in Q1 2026 as average interest-earning assets grew and yields improved. Net interest margin expanded 19 basis points to 3.28%, reflecting higher asset yields, lower deposit costs and a favorable asset mix.
3. Loan Growth and Asset Quality
Average loans grew to $577.5 million, a 12% annualized increase, driven by robust mortgage and commercial lending. Nonperforming assets declined to $0.1 million (0.01% of assets) after one charge-off, while net charge-offs totaled $402,000 and the allowance for credit losses stood at 1.16% of loans.
4. Capital Position and Expenses
Stockholders’ equity reached $93.1 million, or $26.62 per share, up from $83.1 million a year earlier, lifting the equity-to-assets ratio to 9.06%. Noninterest expense held near prior levels at $5.9 million, and the effective tax rate was 21.53%, supported by tax-exempt income.