AUBN earnings analysis
What we found in AUBN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Auburn National delivered improving Q2 results, with revenue up 7.8% year over year to $8.766 million, diluted EPS up 26.9% to $0.66 and net interest margin expanding to 3.33%. Loan and deposit growth supported earnings, while nonperforming assets declined to $0.1 million and liquidity remained strong with no borrowings outstanding. Offsetting concerns include a $0.4 million mortgage-lien loss contingency, higher first-half net charge-offs of $380 thousand and continued exposure to interest-rate, securities-valuation and geopolitical risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue increased sequentially and year over year
- Total revenue was $8.766 million, up from $8.626 million in Q1 2026 and $8.133 million in Q2 2025, representing sequential growth of approximately 1.6% and year-over-year growth of approximately 7.8%.
- EPS rose 27% year over year
- Diluted EPS was $0.66 versus $0.63 in Q1 2026 and $0.52 in Q2 2025, up approximately 4.8% sequentially and 26.9% year over year.
- Net interest margin expanded
- Tax-equivalent net interest income increased to $7.995 million from $7.411 million year over year, while net interest margin expanded to 3.33% from 3.18%. Management attributed the improvement to higher asset yields, a more favorable asset mix and lower deposit costs.
- Loan balances continued to grow
- Total loans increased to $579.9 million at June 30, 2026 from $565.3 million at December 31, 2025. Commercial real estate was the largest category at $333.5 million, or 58% of total loans.
- Credit metrics remained favorable
- The company recorded a negative credit-loss provision of $248 thousand in Q2 2026 versus a $113 thousand provision in Q2 2025. Nonperforming assets declined to $0.1 million from $0.5 million at December 31, 2025.
- Deposits and liquidity strengthened
- Deposits increased to $988.3 million from $922.9 million at December 31, 2025, primarily due to reciprocal customer deposits and money-market growth. Available liquidity included $307.9 million of FHLB credit and $73.2 million of federal-funds lines, with no borrowings outstanding.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Mortgage lien loss contingency
- Noninterest expense increased to $6.105 million from $5.702 million year over year, driven primarily by a $0.4 million loss-contingency accrual related to the release of a mortgage lien. The company has submitted an insurance claim, but recognized no recovery in Q2 2026.
- Allowance declined amid higher charge-offs
- The allowance for credit losses declined to $6.6 million, or 1.14% of loans, from $7.2 million, or 1.27%, at December 31, 2025, partly due to a new municipal-loan CECL segment. Net charge-offs were $380 thousand in the first six months of 2026 versus $16 thousand in the prior-year period.
- Securities losses pressure equity
- Available-for-sale securities fell to $220.7 million from $233.3 million at December 31, 2025, while the company recorded a $0.6 million after-tax other comprehensive loss from increased unrealized securities losses. Management noted that higher rates can adversely affect stockholders’ equity and tangible equity.
- Balance-sheet growth diluted capital ratio
- The equity-to-assets ratio declined to 8.65% from 9.04% at December 31, 2025, primarily because reciprocal deposits were retained on balance sheet. Estimated uninsured deposits remained $380.4 million, or 38% of total deposits.
- Interest-rate and deposit-cost risk
- Management said interest rates, inflation and monetary policy may remain challenging in 2026; the Federal Reserve target range was 3.50% to 3.75% on July 29, 2026. Deposit pricing competition could pressure net interest margin before earning assets reprice.
- Geopolitical and energy-supply risk
- The updated risk-factor discussion identifies military hostilities involving the United States, Israel and Iran beginning February 28, 2026, and oil-shipment disruptions that could raise costs, inflation and rates. The filing states these pressures could adversely affect net interest margin, securities values and borrowers’ repayment ability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.66
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management stated that interest rates, inflation and monetary policy may continue to fluctuate in 2026 and that managing deposit costs until assets reprice will be important to net interest margin during the remainder of 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 13, 2026
- Auburn National Bancorporation reported Q1 2026 net earnings of $2.198 million, achieving a diluted EPS of $0.63, which was a strong 44% increase year-over-year. Total revenue for the quarter was $8.626 million,…
- 10-K · March 17, 2026
- Auburn National presents a community-bank strategy focused on local customer relationships, branch presence (main + 7 branches) and mortgage/commercial lending in the Auburn-Opelika MSA. Financials show stable top-line…
- 10-Q · May 2, 2025
- Auburn National reported quarter-ended March 31, 2025 net earnings of $1,530,000 (EPS $0.44) on total operating revenue of $7,792,000, up versus the year-ago quarter. Net interest income strengthened to $7,045,000 while…
- 10-Q · November 1, 2024
- Auburn National Bancorporation reported Q3 2024 results showing revenue growth to $11 million, a 10% increase from the previous quarter and a 10% increase year-over-year. EPS remained stable at $0.50, matching the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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