AUBN · Auburn National Bancorporation, Inc.

Auburn National Bancorporation's Q1 2026 results demonstrated robust revenue growth, with net interest income (tax-equivalent) rising to $7.8 million from $7.1 million in Q1 2025, fueled by higher average interest-earning assets and net interest margin expansion to 3.28% from 3.09%. The margin improvement stemmed from elevated yields on earning assets, lower deposit costs, and a favorable asset mix, alongside 12% annualized loan growth to average loans of $577.5 million. CEO David A. Hedges highlighted strong revenue from net interest income and mortgage lending, noting solid asset quality, capital, and liquidity despite elevated net charge-offs of $402 thousand from a single fully charged-off nonperforming loan. Nonperforming assets improved sharply to $0.1 million or 0.01% of total assets. A negative provision for credit losses of $(76) thousand reflected CECL methodology refinements, including a new municipal loan segment that lowered the allowance to 1.16% of loans. Noninterest income grew to $0.9 million, driven by mortgage lending, while expenses held steady at $5.9 million year-over-year. Return on assets rose to 0.86% from 0.62%, with equity at $93.1 million and a continued $0.27 per share dividend. Regulatory capital ratios remained well above well-capitalized thresholds, underscoring financial strength amid controlled costs and improved profitability.