AUBURN NATIONAL BANCORPORATION, INC (AUBN)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 EPS was $0.64, up 23% sequentially and 28% YoY, driven by higher net interest income and a negative provision for credit losses; ROA improved to 0.89% and NIM expanded 25 bps YoY to 3.30% .
• Credit quality strengthened materially: nonperforming assets fell to $0.1M (0.01% of total assets) vs $0.3M (0.03%) in Q2 2025 and $0.8M (0.08%) in Q3 2024; allowance coverage stood at 1.20% of loans .
• Deposits declined Q/Q to $917.3M (partly due to $33.0M reciprocal deposits sold via Intrafi), while equity and book value per share rose to $89.6M and $25.65, respectively; TCE ratio improved to 8.86% .
• Management highlighted progress on digital initiatives, launching online account opening for select deposit products—an effort to enhance convenience and broaden access; no formal guidance was provided .
• Dividend policy remains consistent: Board declared a Q4 2025 cash dividend of $0.27 per share payable Dec 26, 2025; the company paid $0.27 per share in Q3 2025 .

What Went Well and What Went Wrong

What Went Well

• Net interest income (tax-equivalent) increased to $7.6M, up 3% Q/Q and 11% Y/Y, underpinned by improved yields on interest-earning assets; NIM rose to 3.30% from 3.27% in Q2 and 3.05% in Q3 2024 .
• Credit metrics strengthened: nonperforming assets dropped to 0.01% of total assets, and the period included a negative provision for credit losses of $255K, reflecting benign credit trends and forward-looking assumptions .
• Digital progress: “we recently rolled out online account opening for certain deposit products…an important step in enhancing convenience and expanding access,” said President & CEO David A. Hedges .

What Went Wrong

• Loans fell to $557.9M from $562.7M in Q2 and $565.7M in Q3 2024, reflecting softer loan demand; management has noted slowed demand in prior quarters .
• Deposits declined to $917.3M from $939.9M in Q2 (offset by Intrafi activity), adding quarter-to-quarter variability to funding composition; reciprocal deposits sold were $33.0M at Q3-end vs none at Q2-end .
• Noninterest expense increased to $5.8M from $5.7M in Q2 and $5.5M a year ago, primarily due to higher salaries and benefits, modestly pressuring the efficiency ratio despite overall improvement Y/Y .

Financial Results

Summary Financials vs Prior Year and Prior Quarter

Revenue Mix

Balance Sheet and Credit KPIs

Guidance Changes

Note: Company did not issue quantitative guidance ranges for revenue, margins, OpEx, OI&E, or tax rate in Q3 2025 materials .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found, so themes reflect press release commentary ; prior quarters also had no transcripts listed .

Management Commentary

• “Our third quarter results reflect strong credit quality and continued improvement in our net interest margin…we recently rolled out online account opening for certain deposit products…an important step in enhancing convenience and expanding access” — David A. Hedges, President & CEO .
• Q2 perspective: “While loan demand has slowed, we remain optimistic that our net interest margin will continue to improve as loans and securities re-price. Once again, our capital and liquidity remain strong…” — David A. Hedges .
• Q1 framing: Similar emphasis on NIM improvement with robust capital and liquidity positioning .

Q&A Highlights

• No Q3 2025 earnings call transcript was available; no formal Q&A disclosures were identified in filings or press materials .
• Key areas likely to be probed include deposit composition variability (Intrafi activity), drivers of negative provision release, and durability of NIM expansion in a shifting rate environment—each addressed qualitatively in releases .

Estimates Context

• Wall Street consensus estimates via S&P Global were unavailable for EPS and revenue for Q3 2025; coverage appears limited for AUBN’s quarter, so comparisons to consensus cannot be made at this time.*
• Actual results: Revenue $8.401M and EPS $0.64 from company disclosures .
  *Values retrieved from S&P Global.

Key Takeaways for Investors

• Earnings quality strong: Sequential EPS and NII growth alongside negative provision signal benign credit and core spread improvement; efficiency ratio continued to improve despite modest expense growth .
• NIM expansion is the key narrative; asset yield repricing drove margin gains Q/Q and Y/Y, offering potential near-term tailwind if deposit costs remain contained .
• Credit risk low and improving, with NPAs at 0.01% and allowance at 1.20% of loans; this supports lower provisioning needs near term barring macro shocks .
• Funding mix variability tied to reciprocal deposits (Intrafi) introduces quarter-to-quarter swings in reported deposit balances; monitor composition and cost of deposits as rates evolve .
• Capital build continues: TCE ratio rose to 8.86% and book value increased; dividend maintained at $0.27 per share supports income-oriented holders without constraining capital .
• Loan demand remains soft; absent acceleration, upside will rely on continued margin expansion, securities/loan repricing, and fee stability .
• Near-term: Stock sensitive to confirmation of margin durability and credit stability; medium-term: Digital initiatives could support deposit growth/retention and operating efficiency if executed well .