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Auburn National Bancorporation, Inc. Reports First Quarter Net Earnings
来源: Nasdaq GlobeNewswire / 27 4月 2021 08:00:02 America/New_York
First Quarter 2021 Results:
- Net earnings of $2.0 million, compared to $1.8 million for Q1 2020
- Earnings per share of $0.56 per share, compared to $0.50 per share for Q1 2020
- Mortgage lending income of $0.5 million more than doubled, compared to $0.2 million in Q1 2020
- Funded 204 loans in 2021 totaling $18.7 million under the Paycheck Protection Program (“PPP”)
- Collected $0.9 million in gross PPP loan fees in Q1 2021
- Allowance for loan losses to total loans of 1.23% or 1.31% excluding PPP loans
AUBURN, Ala., April 27, 2021 (GLOBE NEWSWIRE) -- Auburn National Bancorporation, Inc. (Nasdaq: AUBN) reported net earnings of $2.0 million, or $0.56 per share, for the first quarter of 2021, compared to $1.8 million, or $0.50 per share, for the first quarter of 2020.
“The Company enjoyed strong mortgage revenue and excellent credit quality in the first quarter of 2021. Low interest rates continue to be a challenge, but we are optimistic that the economy will improve in light of the growing number COVID-19 vaccinations and the easing of pandemic-related restrictions in our markets,” said Robert W. Dumas, Chairman, President, and CEO.
“We continue to work with our small businesses who are affected by the pandemic to help them gain access to PPP funds and also to complete the PPP loan forgiveness process. In the first quarter of 2021, we funded $18.7 million Paycheck Protection Program loans for our customers, which helped support approximately 2,600 employees in our markets,” said Mr. Dumas.
Net interest income (tax-equivalent) was $6.1 million for the first quarter of 2021, a 4% decrease compared to $6.3 million for the first quarter of 2020. This decrease was primarily due to net interest margin compression resulting from the Federal Reserve’s interest rate reductions in response to COVID-19.
Net interest margin (tax-equivalent) decreased to 2.66% in the first quarter of 2021, compared to 3.23% for the first quarter of 2020, primarily due to the lower interest rate environment and changes in our asset mix resulting from the significant increase in customer deposits.
The Company recorded no provision for loan losses during the first quarter of 2021, compared to a provision for loan losses of $0.4 million during the first quarter of 2020. At March 31, 2021, the Company’s allowance for loan losses was $5.7 million, or 1.23% of total loans, compared to $5.6 million, or 1.22% of total loans, at December 31, 2020, and $4.9 million, or 1.10% of total loans, at March 31, 2020. Excluding PPP loans, the Company’s allowance for loan losses was 1.31% of total loans at March 31, 2021.
We have identified certain commercial sectors with enhanced risk resulting from the impact of COVID-19. Loans within these sectors represent 86% of the Company’s total COVID-19 related modifications at March 31, 2021. The table below summarizes the loans outstanding for these sectors at March 31, 2021.
Portfolio Segment (Dollars in thousands) Commercial
and industrialConstruction and land
developmentCommercial
real estateTotal % of Total
LoansMarch 31, 2021: Hotel/motel $ 741 5,604 48,268 $ 54,613 12 % Shopping centers — — 29,562 29,562 6 Retail, excluding shopping centers 401 — 17,544 17,945 4 Restaurants 1,317 — 12,158 13,475 3 Total $ 2,459 5,604 107,532 $ 115,595 25 % At March 31, 2021, we have granted loan payment deferrals or other loan modifications totaling $32.4 million, or 7% of total loans, compared to $112.7 million, or 24% of total loans at June 30, 2020, the first quarterly period we began offering COVID-19 loan modifications. The tables below provide information concerning the composition of these COVID-19 modifications as of March 31, 2021.
COVID-19 Modifications Modification Types (Dollars in thousands) Balance % of Portfolio
ModifiedInterest Only
PaymentP&I Payments
DeferredCommercial and industrial $ 741 — % 100 % — % Commercial real estate 31,391 7 100 — Residential real estate 314 — — 100 Total $ 32,446 7 % 99 % 1 % COVID-19 Modifications within Commercial Real Estate Segments (Dollars in thousands) Balance of Loans
Modified% of Total
Segment LoansHotel/motel $ 26,419 48 % Restaurants 1,442 11 Noninterest income was $1.2 million for the first quarter of 2021 and 2020, respectively. For the first quarter of 2021, noninterest income included an increase in mortgage lending income of $0.3 million. The increase was primarily due to an increase in mortgage lending income as lower interest rates for mortgage loans positively affected refinance activity and pricing margins improved. For the first quarter of 2020, noninterest income included $0.3 million in non-taxable death benefits from bank-owned life insurance.
Noninterest expense was $4.7 million for the first quarter of 2021 compared to $4.9 million for the first quarter of 2020. The decrease was primarily due to a reduction of $0.2 million in various expenses related to the redevelopment of the Company’s headquarters in downtown Auburn.
Income tax expense was $0.4 million for the first quarter of 2021 and 2020, respectively. The Company’s effective tax rate for the first quarter of 2021 was 17.41%, compared to 17.80% in the first quarter of 2020.
The Company paid cash dividends of $0.26 per share in the first quarter of 2021, an increase of 2% from the same period in 2020. At March 31, 2021, the Bank’s regulatory capital ratios were 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 $993 million. The Bank is an Alabama state-chartered bank that is a member of the Federal Reserve System, which 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 eight full-service branches in Auburn, Opelika, Valley, and Notasulga, Alabama. The Bank also operates loan production offices in Auburn and 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, the effects of the COVID-19 pandemic and related government, Federal Reserve and regulatory actions, including economic conditions generally and in our markets, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income) and our deposit and wholesale 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, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for loan losses, charge-offs, other-than-temporary impairments, collateral values, credit quality, asset sales, insurance claims, 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, 2020 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, and the presentation and calculation of the efficiency ratio, a non-GAAP measure. 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. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. 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.
Reports First Quarter Net Earnings Financial Highlights (unaudited) Quarter ended March 31, (Dollars in thousands, except per share amounts) 2021 2020 Results of Operations Net interest income (a) $ 6,057 $ 6,332 Less: tax-equivalent adjustment 120 120 Net interest income (GAAP) 5,937 6,212 Noninterest income 1,182 1,235 Total revenue 7,119 7,447 Provision for loan losses — 400 Noninterest expense 4,690 4,856 Income tax expense 423 390 Net earnings $ 2,006 $ 1,801 Per share data: Basic and diluted net earnings $ 0.56 $ 0.50 Cash dividends declared $ 0.26 $ 0.255 Weighted average shares outstanding: Basic and diluted 3,566,299 3,566,146 Shares outstanding, at period end 3,566,326 3,566,146 Book value $ 29.06 $ 29.04 Common stock price: High $ 48.00 $ 59.99 Low 37.55 24.11 Period-end 38.37 41.98 To earnings ratio 17.85 x 16.66 x To book value 132 % 145 % Performance ratios: Return on average equity (annualized) 7.37 % 7.24 % Return on average assets (annualized) 0.82 % 0.86 % Dividend payout ratio 46.43 % 51.00 % Other financial data: Net interest margin (a) 2.66 % 3.23 % Effective income tax rate 17.41 % 17.80 % Efficiency ratio (b) 64.79 % 64.17 % Asset Quality: Nonperforming assets: Nonperforming (nonaccrual) loans $ 783 $ 116 Other real estate owned — 99 Total nonperforming assets $ 783 $ 215 Net recoveries $ 64 $ 81 Allowance for loan losses as a % of: Loans 1.23 % 1.10 % Nonperforming loans 726 % 4,196 % Nonperforming assets as a % of: Loans and other real estate owned 0.17 % 0.05 % Total assets 0.08 % 0.03 % Nonperforming loans as a % of total loans 0.17 % 0.03 % Annualized net recoveries as a % of average loans 0.06 % 0.07 % Selected average balances: Securities $ 353,031 $ 257,317 Loans, net of unearned income 463,424 451,210 Total assets 980,884 838,725 Total deposits 863,194 734,047 Long-term debt — — Total stockholders' equity 108,890 99,560 Selected period end balances: Securities $ 359,630 $ 280,435 Loans, net of unearned income 461,879 443,868 Allowance for loan losses 5,682 4,867 Total assets 993,263 856,475 Total deposits 880,590 746,785 Long-term debt — — Total stockholders' equity 103,639 103,563 (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. Reports First Quarter Earnings Reconciliation of GAAP to non-GAAP Measures (unaudited): Quarter ended March 31, (Dollars in thousands, except per share amounts) 2021 2020 Net interest income, as reported (GAAP) $ 5,937 $ 6,212 Tax-equivalent adjustment 120 120 Net interest income (tax-equivalent) $ 6,057 $ 6,332 For additional information, contact:
Robert W. Dumas
Chairman, President and CEO
(334) 821-9200
- Net earnings of $2.0 million, compared to $1.8 million for Q1 2020