Auburn National Bancorporation (Nasdaq: AUBN) reported quarterly
net earnings of $2.1 million, or $0.58 per share, for the fourth
quarter of 2020, compared to $2.7 million, or $0.75 per share, for
the fourth quarter of 2019. For the full year 2020, the Company
reported net earnings of $7.5 million, or $2.09 per share for 2020,
compared to $9.7 million, or $2.72 per share, for 2019. The
decrease in full year 2020 net earnings was primarily driven by the
negative impact of the COVID-19 pandemic, which resulted in
elevated provision for loan losses, compared to 2019, in addition
to a lower interest rate environment.
“I am very proud of our organization’s response to
the challenges presented by the COVID-19 pandemic and I would like
to extend my sincere thanks to our entire team for the results we
achieved in 2020 and the efforts of our staff to stay safe while
being accessible to customers,” said Robert W. Dumas, Chairman,
President, and CEO. “We believe the Company’s strong balance sheet
is well positioned to continue to support our customers and
communities through the pandemic,” said Mr. Dumas.
“I am also pleased to report the Company was
recently named a Banking Performance Powerhouse by Bank Director in
their 2021 ‘RankingBanking’ study. The ranking included the 20
highest performing banks in the United States based on total
shareholder return over a 20 year period-ended June 30, 2020. Once
again, we remain confident that our long-term approach and
philosophy of knowing and caring for our customers, maintaining
exceptional asset quality, and supporting our communities will
enable us to continue to generate value for our shareholders in the
future,” said Mr. Dumas.
Net interest income (tax-equivalent) was $6.3
million for the fourth quarter of 2020, a decrease of 1% compared
to $6.4 million for the fourth quarter of 2019. 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 2.81% in the
fourth quarter of 2020, compared to 3.27% for the fourth quarter of
2019 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 for the fourth
quarter of 2020, compared to a negative provision of $0.3 million
for the fourth quarter of 2020. At December 31, 2020, the Company’s
allowance for loan losses was $5.6 million, or 1.22% of total
loans, compared to $4.4 million, or 0.95% of total loans, at
December 31, 2019. Excluding PPP loans, the Company’s allowance for
loan losses was 1.27% of total loans at December 31, 2020.
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 December 31, 2020. The table below summarizes the loans
outstanding for these sectors at December 31, 2020.
|
|
Portfolio Segment |
|
|
|
|
(Dollars in thousands) |
|
Commercialand industrial |
Construction and land development |
Commercial real estate |
|
Total |
% of Total Loans |
December 31, 2020: |
|
|
|
|
|
|
|
|
Hotel/motel |
$ |
866 |
10,549 |
42,900 |
$ |
54,315 |
12 |
% |
Shopping centers |
|
8 |
— |
30,000 |
|
30,008 |
6 |
|
Retail, excluding shopping centers |
|
327 |
— |
18,053 |
|
18,380 |
4 |
|
Restaurants |
|
1,407 |
— |
12,865 |
|
14,272 |
3 |
|
Total |
$ |
2,608 |
10,549 |
103,818 |
$ |
116,975 |
25 |
% |
At December 31, 2020, our loan payment deferrals or other loan
modifications totaled $32.3 million, or 7% of total loans. This was
a decline from $87.1 million, or 18% of total loans at September
30, 2020 and $112.7 million, or 24% of total loans at June 30,
2020. The tables below provide information concerning the
composition of these COVID-19 modifications as of December 31,
2020.
COVID-19
Modifications |
|
|
|
Modification Types |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Balance |
% of Portfolio Modified |
|
Interest Only Payment |
|
P&I Payments Deferred |
|
Commercial and
industrial |
$ |
741 |
— |
% |
100 |
% |
— |
% |
Commercial real
estate |
|
31,399 |
7 |
|
100 |
|
— |
|
Residential real estate |
|
133 |
— |
|
— |
|
100 |
|
Total |
$ |
32,273 |
7 |
% |
99 |
% |
1 |
% |
COVID-19
Modifications within High Exposure Commercial Real Estate
Segments |
|
(Dollars in thousands) |
|
Balance of Loans Modified |
% of Total Segment Loans |
|
Hotel/motel |
$ |
26,427 |
49 |
% |
Restaurants |
|
1,442 |
10 |
|
During 2020, we participated in the PPP, where the federal
government provided loan guarantees and forgiveness for qualifying
loans, and generated 423 PPP loans with an aggregate outstanding
principal balance of $36.5 million. We collected approximately $1.5
million in fees payable by the federal government on our PPP loans.
These fees are recognized, net of related costs, as a yield
adjustment over the life of the underlying PPP loans. During 2020,
we received payments and forgiveness on 158 loans totaling $17.5
million. The outstanding balance for the remaining 265 loans as of
December 31, 2020 was approximately $19.0 million.
Noninterest income was $1.4 million in the fourth quarter of
2020, compared to $2.5 million in the fourth quarter of 2019. The
decrease was primarily due to a $1.7 million payment received by
the Company during the fourth quarter of 2019 that resulted from
the termination of a loan guarantee program operated by the State
of Alabama. This decrease was partially offset by an increase in
mortgage lending income of $0.5 million during the fourth quarter
of 2020 compared to the fourth quarter of 2019, as lower interest
rates for mortgage loans increased refinancing activity and pricing
margins improved.
Noninterest expense was $5.1 million in the fourth quarter of
2020 compared to $5.6 million during the fourth quarter of 2019.
The decrease was primarily due to a reduction of $0.2 million in
salaries and benefits expense and $0.3 million of various expenses
related to the planned redevelopment of the Company’s headquarters
in downtown Auburn.
Income tax expense was $0.4 million for the fourth quarter of
2020, compared to $0.7 million during fourth quarter of 2019. The
Company's effective tax rate for the fourth quarter of 2020 was
17.92%, compared to 20.00% in the fourth quarter of 2019. This
change was primarily due to a decrease in the level of earnings
before taxes relative to tax-exempt sources of income.
The Company’s effective income tax rate 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 $0.255 per share in the
fourth quarter of 2020, an increase of 2% from the same period in
2019. At December 31, 2020, 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 $957 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 response, 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, our interim reports on Form 10-Q
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.
For additional information, contact:Robert W. DumasChairman,
President and CEO(334) 821-9200
Financial Highlights (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, |
|
|
Years ended December 31, |
|
(Dollars in thousands, except per share amounts) |
|
2020 |
|
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|
Results of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (a) |
$ |
6,311 |
|
|
|
$ |
6,406 |
|
|
|
$ |
24,830 |
|
|
|
$ |
26,621 |
|
|
Less: tax-equivalent adjustment |
|
123 |
|
|
|
|
126 |
|
|
|
|
492 |
|
|
|
|
557 |
|
|
|
Net interest income (GAAP) |
|
6,188 |
|
|
|
|
6,280 |
|
|
|
|
24,338 |
|
|
|
|
26,064 |
|
|
Noninterest income |
|
1,403 |
|
|
|
|
2,458 |
|
|
|
|
5,375 |
|
|
|
|
5,494 |
|
|
|
Total revenue |
|
7,591 |
|
|
|
|
8,738 |
|
|
|
|
29,713 |
|
|
|
|
31,558 |
|
|
Provision for loan losses |
|
— |
|
|
|
|
(250 |
) |
|
|
|
1,100 |
|
|
|
|
(250 |
) |
|
Noninterest expense |
|
5,086 |
|
|
|
|
5,633 |
|
|
|
|
19,554 |
|
|
|
|
19,697 |
|
|
Income tax expense |
|
449 |
|
|
|
|
671 |
|
|
|
|
1,605 |
|
|
|
|
2,370 |
|
|
Net earnings |
$ |
2,056 |
|
|
|
$ |
2,684 |
|
|
|
$ |
7,454 |
|
|
|
$ |
9,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net earnings: |
$ |
0.58 |
|
|
|
$ |
0.75 |
|
|
|
$ |
2.09 |
|
|
|
$ |
2.72 |
|
|
Cash dividends declared |
$ |
0.255 |
|
|
|
$ |
0.25 |
|
|
|
$ |
1.02 |
|
|
|
$ |
1.00 |
|
|
Weighted average shares outstanding: |
|
3,566,276 |
|
|
|
|
3,566,146 |
|
|
|
|
3,566,207 |
|
|
|
|
3,581,476 |
|
|
Shares outstanding, at period end |
|
3,566,276 |
|
|
|
|
3,566,146 |
|
|
|
|
3,566,276 |
|
|
|
|
3,566,146 |
|
|
Book value |
$ |
30.20 |
|
|
|
$ |
27.57 |
|
|
|
$ |
30.20 |
|
|
|
$ |
27.57 |
|
|
Common stock price: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
$ |
43.00 |
|
|
|
$ |
53.90 |
|
|
|
$ |
63.40 |
|
|
|
$ |
53.90 |
|
|
|
Low |
|
36.75 |
|
|
|
|
40.00 |
|
|
|
|
24.11 |
|
|
|
|
30.61 |
|
|
|
Period-end |
$ |
42.29 |
|
|
|
$ |
53.00 |
|
|
|
$ |
42.29 |
|
|
|
$ |
53.00 |
|
|
|
|
To earnings ratio |
|
20.23 |
|
x |
|
|
19.49 |
|
x |
|
|
20.23 |
|
x |
|
|
19.49 |
|
x |
|
|
To book value |
|
140 |
|
% |
|
|
192 |
|
% |
|
|
140 |
|
% |
|
|
192 |
|
% |
Performance ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (annualized): |
|
7.63 |
|
% |
|
|
10.86 |
|
% |
|
|
7.12 |
|
% |
|
|
10.35 |
|
% |
Return on average assets (annualized): |
|
0.87 |
|
% |
|
|
1.30 |
|
% |
|
|
0.83 |
|
% |
|
|
1.18 |
|
% |
Dividend payout ratio |
|
43.97 |
|
% |
|
|
33.33 |
|
% |
|
|
48.80 |
|
% |
|
|
36.76 |
|
% |
Other financial data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (a) |
|
2.81 |
|
% |
|
|
3.27 |
|
% |
|
|
2.92 |
|
% |
|
|
3.43 |
|
% |
Effective income tax rate |
|
17.92 |
|
% |
|
|
20.00 |
|
% |
|
|
17.72 |
|
% |
|
|
19.57 |
|
% |
Efficiency ratio (b) |
|
65.93 |
|
% |
|
|
63.55 |
|
% |
|
|
64.74 |
|
% |
|
|
61.33 |
|
% |
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming (nonaccrual) loans |
$ |
534 |
|
|
|
$ |
187 |
|
|
|
$ |
534 |
|
|
|
$ |
187 |
|
|
|
|
Total nonperforming assets |
$ |
534 |
|
|
|
$ |
187 |
|
|
|
$ |
534 |
|
|
|
$ |
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (recoveries) charge-offs |
$ |
(43 |
) |
|
|
$ |
171 |
|
|
|
$ |
(132 |
) |
|
|
$ |
154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a % of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
1.22 |
|
% |
|
|
0.95 |
|
% |
|
|
1.22 |
|
% |
|
|
0.95 |
|
% |
|
Nonperforming loans |
|
1,052 |
|
% |
|
|
2,345 |
|
% |
|
|
1,052 |
|
% |
|
|
2,345 |
|
% |
Nonperforming assets as a % of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and other real estate owned |
|
0.12 |
|
% |
|
|
0.04 |
|
% |
|
|
0.12 |
|
% |
|
|
0.04 |
|
% |
|
Total assets |
|
0.06 |
|
% |
|
|
0.02 |
|
% |
|
|
0.06 |
|
% |
|
|
0.02 |
|
% |
Nonperforming loans as a % of total loans |
|
0.12 |
|
% |
|
|
0.04 |
|
% |
|
|
0.12 |
|
% |
|
|
0.04 |
|
% |
Net (recoveries) charge-offs as a % of average loans (c) |
|
(0.04 |
) |
% |
|
|
0.15 |
|
% |
|
|
(0.03 |
) |
% |
|
|
0.03 |
|
% |
Selected average balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities |
$ |
325,102 |
|
|
|
$ |
249,106 |
|
|
|
$ |
297,449 |
|
|
|
$ |
245,038 |
|
|
Loans, net of unearned income |
|
466,704 |
|
|
|
|
469,579 |
|
|
|
|
462,561 |
|
|
|
|
473,213 |
|
|
Total assets |
|
944,439 |
|
|
|
|
827,684 |
|
|
|
|
900,645 |
|
|
|
|
826,545 |
|
|
Total deposits |
|
828,801 |
|
|
|
|
723,557 |
|
|
|
|
789,163 |
|
|
|
|
727,723 |
|
|
Total stockholders' equity |
|
107,791 |
|
|
|
|
98,887 |
|
|
|
|
104,734 |
|
|
|
|
94,151 |
|
|
Selected period end balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities |
$ |
335,177 |
|
|
|
$ |
235,902 |
|
|
|
$ |
335,177 |
|
|
|
$ |
235,902 |
|
|
Loans, net of unearned income |
|
461,700 |
|
|
|
|
460,901 |
|
|
|
|
461,700 |
|
|
|
|
460,901 |
|
|
Allowance for loan losses |
|
5,618 |
|
|
|
|
4,386 |
|
|
|
|
5,618 |
|
|
|
|
4,386 |
|
|
Total assets |
|
956,597 |
|
|
|
|
828,570 |
|
|
|
|
956,597 |
|
|
|
|
828,570 |
|
|
Total deposits |
|
839,792 |
|
|
|
|
724,152 |
|
|
|
|
839,792 |
|
|
|
|
724,152 |
|
|
Total stockholders' equity |
|
107,689 |
|
|
|
|
98,328 |
|
|
|
|
107,689 |
|
|
|
|
98,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
(c) Net (recoveries) charge-offs are annualized. |
|
Reconciliation of GAAP to non-GAAP Measures
(unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, |
|
Years ended December 31, |
|
(Dollars in thousands, except per share amounts) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net interest income, as reported (GAAP) |
$ |
6,188 |
$ |
6,280 |
$ |
24,338 |
$ |
26,064 |
|
Tax-equivalent adjustment |
|
123 |
|
126 |
|
492 |
|
557 |
|
Net interest income (tax-equivalent) |
$ |
6,311 |
$ |
6,406 |
$ |
24,830 |
$ |
26,621 |
|
Grafico Azioni Auburn National Bancorpo... (NASDAQ:AUBN)
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Da Giu 2024 a Lug 2024
Grafico Azioni Auburn National Bancorpo... (NASDAQ:AUBN)
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Da Lug 2023 a Lug 2024