Auburn National Bancorp Inc (AUBN) Reports Q3 2023 Earnings

• Net earnings for Q3 2023 stood at $1.5 million, down from $2.0 million in Q3 2022.

• Net interest income (tax-equivalent) was $6.4 million for Q3 2023, a decrease of 13% compared to Q3 2022.

• Nonperforming assets were $1.2 million, or 0.12% of total assets, at September 30, 2023.

• Total assets were $1.0 billion at September 30, 2023.

On October 26, 2023, Auburn National Bancorp Inc (NASDAQ:AUBN) released its Q3 2023 earnings report. The company reported net earnings of $1.5 million, or $0.43 per share, for the third quarter of 2023, compared to $2.0 million, or $0.57 per share, for the third quarter of 2022. Net earnings for the first nine months of 2023 were $5.4 million, or $1.54 per share, compared to $5.9 million, or $1.67 per share, for the first nine months of 2022.

Financial Performance and Challenges

AUBN's third quarter results reflect a challenging operating environment due to rising market interest rates and competition for deposits. Despite higher deposit costs during the third quarter of 2023, the company benefited from solid loan growth, strong asset quality, and lower deposit costs generally compared to peers. The company's net interest income (tax-equivalent) was $6.4 million for the third quarter of 2023, a decrease of 13% compared to $7.4 million for the third quarter of 2022.

Key Financial Details

Nonperforming assets were $1.2 million, or 0.12% of total assets, at September 30, 2023, compared to $1.1 million, or 0.11% of total assets, at June 30, 2023. The company's allowance for credit losses was $6.8 million, or 1.24% of total loans, compared to $6.6 million, or 1.27% of total loans, at June 30, 2023. Noninterest income was $0.9 million for both the third quarter of 2023 and 2022.

Assets and Equity

Total assets were $1.0 billion at September 30, 2023. Loans, net of unearned income were $545.6 million at September 30, 2023, compared to $520.4 million at June 30, 2023. At September 30, 2023, the companys consolidated stockholders equity was $61.5 million or $17.59 per share, compared to $59.8 million, or $17.06 per share, at September 30, 2022.

Outlook

Despite the challenging operating environment, AUBN continues to benefit from solid loan growth and strong asset quality. The company's focus on maintaining lower deposit costs compared to its peers has also helped to mitigate some of the impact of rising market interest rates and deposit competition.

Explore the complete 8-K earnings release (here) from Auburn National Bancorp Inc for further details.

This article first appeared on GuruFocus.