First Quarter 2015 Highlights:
- Earnings per share increased 2% compared to first quarter
2014
- Net interest income (tax-equivalent) increased 5% compared to
first quarter 2014
- Average loans increased $22.9 million or 6% compared to first
quarter 2014
- Annualized net charge-offs as a % of average loans were 0.11%
compared to 0.17% in first quarter 2014
- Nonperforming assets were 0.22% of total assets at March 31,
2015 compared to 0.81% a year earlier
Auburn National Bancorporation, Inc. (Nasdaq:AUBN) reported net
earnings of $1.9 million, or $0.51 per share, for the first quarter
of 2015, compared to $1.8 million, or $0.50 per share, for the
first quarter of 2014.
"The Company's first quarter results reflect solid growth in net
interest income and strong asset quality," said E.L. Spencer, Jr.,
President, CEO and Chairman of the Board.
Net interest income (tax-equivalent) was $5.9 million for the
first quarter of 2015, an increase of 5% compared to the first
quarter of 2014. This increase reflects management's efforts to
increase earnings by shifting the Company's asset mix through loan
growth, focusing on deposit pricing, and repaying higher-cost
wholesale funding. Average loans were $400.2 million in the first
quarter of 2015, an increase of $22.9 million or 6%, from the first
quarter of 2014. Average deposits were $705.7 million in the first
quarter of 2015, an increase of $27.4 million or 4%, from the first
quarter of 2014.
Nonperforming assets were $1.8 million, or 0.32% of total
assets, at March 31, 2015, compared to $1.7 million, or 0.21% of
total assets, at December 31, 2014. The Company recorded no
provision for loan losses for the first quarter of 2015, compared
to a negative provision of $0.4 million for the first quarter of
2014. Provision expense reflects the absolute level of loans, loan
growth, the credit quality of the loan portfolio, and the amount of
net charge-offs.
Noninterest income was $1.3 million for the first quarter of
2015, compared to $0.8 million in the first quarter of
2014. The increase was primarily due to an increase in income
from bank-owned life insurance of $0.3 million related to
non-taxable death benefits recognized in the first quarter of 2015
and an increase in net securities gains (losses) of $0.3 million
due to other-than-temporary impairment charges recognized in the
first quarter of 2014 related to available-for-sale, agency
residential mortgage-backed securities the Company intended to sell
at March 31, 2014 and subsequently sold in early April
2014.
Noninterest expense was $4.3 million in the first quarter of
2015, compared to $3.9 million in the first quarter of
2014. The increase was primarily due to an increase in
prepayment penalties incurred on long-term debt. The Company
incurred prepayment penalties of $0.4 million during the first
quarter of 2015 when the company repaid $5.0 million of long-term
debt with a weighted average interest rate of 3.59%, compared to
none during the first quarter of 2014.
Income tax expense was $0.7 million for the first quarter of
2015 and 2014. The Company's income tax expense for the first
quarter of 2015 reflects an effective income tax rate of 26.40%,
compared to 26.51% for the first quarter of 2014. The Company's
income tax expense is principally impacted by tax-exempt earnings
from the Company's investments in municipal securities and
bank-owned life insurance.
The Company paid cash dividends of $0.22 per share in the first
quarter of 2015, an increase of 2.3% from the same period in 2014.
At March 31, 2015, the Bank's regulatory capital was well above the
minimum amounts required to be "well capitalized" under current
regulatory standards.
About Auburn National Bancorporation, Inc.
Auburn National Bancorporation, Inc. (the "Company") is the
parent company of AuburnBank (the "Bank"), with total assets of
approximately $790 million. The Bank is an Alabama state-chartered
bank that is a member of the Federal Reserve System and has
operated continuously since 1907. Both the Company and the Bank are
headquartered in Auburn, Alabama. The Bank conducts its business in
East Alabama, including Lee County and surrounding areas. The Bank
operates full-service branches in Auburn, Opelika, Valley,
Hurtsboro and Notasulga, Alabama. In-store branches are
located in the Kroger in Opelika and Wal-Mart SuperCenter stores in
both Auburn and Opelika. The Bank also operates a commercial loan
production office in Phenix City, Alabama. Additional information
about the Company and the Bank may be found by visiting
www.auburnbank.com.
Cautionary Notice Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, including, without limitation, statements
about future financial and operating results, costs and revenues,
economic conditions in our markets, loan demand, mortgage lending
activity, changes in the mix of our earning assets and our deposit
liabilities, net interest margin, yields on earning assets,
securities valuations and performance, interest rates (generally
and those applicable to our assets and liabilities), loan
performance, nonperforming assets, other real estate owned, loan
losses, charge-offs, other-than-temporary impairments, collateral
values, credit quality, asset sales, and market trends, as well as
statements with respect to our objectives, expectations and
intentions and other statements that are not historical
facts. Actual results may differ from those set forth in the
forward-looking statements.
Forward-looking statements, with respect to our beliefs, plans,
objectives, goals, expectations, anticipations, estimates and
intentions, involve known and unknown risks, uncertainties and
other factors, which may be beyond our control, and which may cause
the actual results, performance, achievements, or financial
condition of the Company or the Bank to be materially different
from future results, performance, achievements, or financial
condition expressed or implied by such forward-looking
statements. You should not expect us to update any
forward-looking statements.
All written or oral forward-looking statements attributable to
us are expressly qualified in their entirety by this cautionary
notice, together with those risks and uncertainties described in
our annual report on Form 10-K for the year ended December 31,
2014 and otherwise in our other SEC reports and filings.
Explanation of Certain Unaudited Non-GAAP Financial
Measures
This press release contains financial information determined by
methods other than U.S. generally accepted accounting principles
("GAAP"). The attached financial highlights include certain
designated net interest income amounts presented on a
tax-equivalent basis, a non-GAAP financial measure, including the
presentation and calculation of the efficiency ratio. Management
uses these non-GAAP financial measures in its analysis of the
Company's performance and believes the presentation of net interest
income on a tax-equivalent basis provides comparability of net
interest income from both taxable and tax-exempt sources and
facilitates comparability within the industry. Although the
Company believes these non-GAAP financial measures enhance
investors' understanding of its business and performance, these
non-GAAP financial measures should not be considered an alternative
to GAAP. Along with the attached financial highlights, the Company
provides reconciliations between the GAAP financial measures and
these non-GAAP financial measures.
|
|
|
|
|
|
Financial Highlights
(unaudited) |
|
|
|
Quarter ended
March 31, |
(Dollars in thousands, except per share
amounts) |
2015 |
2014 |
Results of Operations |
|
|
Net interest income (a) |
$ 5,858 |
$ 5,594 |
Less: tax-equivalent adjustment |
335 |
324 |
Net interest income (GAAP) |
5,523 |
5,270 |
Noninterest income |
1,321 |
756 |
Total revenue |
6,844 |
6,026 |
Provision for loan losses |
— |
(400) |
Noninterest expense |
4,314 |
3,948 |
Income tax expense |
668 |
657 |
Net earnings |
$ 1,862 |
$ 1,821 |
|
|
|
Per share data: |
|
|
Basic and diluted net earnings |
$ 0.51 |
$ 0.50 |
Cash dividends declared |
$ 0.22 |
$ 0.215 |
Weighted average shares outstanding: |
|
|
Basic and diluted |
3,643,365 |
3,643,161 |
Shares outstanding, at period end |
3,643,378 |
3,643,173 |
Book value |
$ 21.28 |
$ 18.74 |
Common stock price: |
|
|
High |
$ 25.25 |
$ 25.80 |
Low |
23.15 |
23.20 |
Period-end |
24.85 |
23.20 |
To earnings ratio |
12.12x |
11.72x |
To book value |
117% |
124% |
Performance ratios: |
|
|
Return on average equity (annualized) |
9.68% |
11.11% |
Return on average assets (annualized) |
0.93% |
0.96% |
Dividend payout ratio |
43.14% |
43.00% |
Other financial data: |
|
|
Net interest margin (a) |
3.15% |
3.20% |
Effective income tax rate |
26.40% |
26.51% |
Efficiency ratio (b) |
60.09% |
62.17% |
Asset Quality: |
|
|
Nonperforming assets: |
|
|
Nonperforming (nonaccrual)
loans |
$ 1,251 |
$ 3,188 |
Other real estate
owned |
499 |
3,111 |
Total nonperforming
assets |
$ 1,750 |
$ 6,299 |
|
|
|
Net charge-offs |
$ 114 |
$ 157 |
|
|
|
Allowance for loan losses as a % of: |
|
|
Loans |
1.19% |
1.25% |
Nonperforming loans |
377% |
148% |
Nonperforming assets as a % of: |
|
|
Loans and other real estate
owned |
0.44% |
1.66% |
Total assets |
0.22% |
0.81% |
Nonperforming loans as a % of total
loans |
0.32% |
0.84% |
Net charge-offs (annualized) as a % of
average loans |
0.11% |
0.17% |
Selected average
balances: |
|
|
Securities |
$ 264,268 |
$ 268,013 |
Loans, net of unearned income |
400,161 |
377,322 |
Total assets |
802,062 |
762,153 |
Total deposits |
705,746 |
678,324 |
Long-term debt |
11,550 |
12,217 |
Total stockholders' equity |
76,915 |
65,556 |
Selected period end
balances: |
|
|
Securities |
$ 262,141 |
$ 279,989 |
Loans, net of unearned income |
396,613 |
377,350 |
Allowance for loan losses |
4,722 |
4,711 |
Total assets |
790,224 |
773,333 |
Total deposits |
698,336 |
687,088 |
Long-term debt |
7,217 |
12,217 |
Total stockholders' equity |
77,544 |
68,284 |
|
(a) Tax equivalent. See
"Explanation of Certain Unaudited Non-GAAP Financial Measures" and
"Reconciliation of GAAP to non-GAAP Measures (unaudited)." |
(b) Efficiency ratio is the
result of noninterest expense divided by the sum of noninterest
income and tax-equivalent net interest income. |
|
Reconciliation of GAAP to
non-GAAP Measures (unaudited): |
|
|
|
|
Quarter ended
March 31, |
(Dollars in thousands, except per share
amounts) |
2015 |
2014 |
Net interest income, as reported
(GAAP) |
$ 5,523 |
$ 5,270 |
Tax-equivalent adjustment |
335 |
324 |
Net interest income
(tax-equivalent) |
$ 5,858 |
$ 5,594 |
CONTACT: E.L. Spencer, Jr.
President, CEO and
Chairman of the Board
(334) 821-9200
Auburn National Bancorpo... (NASDAQ:AUBN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Auburn National Bancorpo... (NASDAQ:AUBN)
Historical Stock Chart
From Apr 2023 to Apr 2024