Auburn reported second-quarter 2026 net earnings of $2.3 million, or $0.66 per share, up from $1.8 million, or $0.52 per share, in Q2 2025. Total revenue (net interest income tax-equivalent plus noninterest income) was $8.8 million for the quarter and net interest margin (tax-equivalent) expanded to 3.33%. The company recorded a negative provision for credit losses of $(248) thousand and reported nonperforming assets of $0.1 million (0.01% of total assets) at June 30, 2026.

Financial Highlights

  • Net earnings: $2.3 million for Q2 2026; $4.5 million for the six months ended June 30, 2026.
  • Diluted earnings per share: $0.66 for Q2 2026; $1.29 for the first six months of 2026.
  • Total revenue: $8.766 million for Q2 2026 (net interest income tax-equivalent $7.995 million; noninterest income $0.878 million).
  • Net interest margin (tax-equivalent): 3.33% for Q2 2026 (up 15 basis points year-over-year from 3.18%).
  • Provision for credit losses: negative $(248) thousand in Q2 2026 (versus a $113 thousand charge in Q2 2025); allowance for credit losses $6.586 million (1.14% of total loans) at June 30, 2026.

Business Highlights

  • Loan portfolio growth: average loans of approximately $582.3 million in Q2 2026, up from $559.8 million in Q2 2025, supporting higher interest-earning asset base.
  • Asset quality: nonperforming assets decreased to $0.1 million (0.01% of total assets) at June 30, 2026; net recoveries of $21 thousand in Q2 2026.
  • Deposit mix and liquidity: total deposits rose to $988.3 million at June 30, 2026, with an increase in reciprocal deposits retained on the balance sheet (from $19.9 million to $82.3 million quarter-over-quarter).
  • Capital and dividends: stockholders’ equity of $93.9 million ($26.91 per share) at June 30, 2026; paid cash dividends of $0.27 per share in Q2 2026; regulatory capital ratios remain well above “well capitalized” thresholds.
  • Operational adjustments to CECL: established a separate municipal loan segment in CECL in Q1 2026, which lowered expected credit costs and contributed to a reduced allowance compared with prior year.

Original SEC Filing:

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