The Bank Slate


Auburn National in Ala. to report 4Q loss after selling securities

Auburn National Bancorp. in Auburn, Ala., expects to report a fourth-quarter loss after selling available-for-sale securities.

The $1 billion-asset company said in a press release that it sold $117.6 million of securities at a $4.7 million after-tax loss.

Auburn National said it will use a portion of the $111.3 million of proceeds to repay $48 million of wholesale funding. The rest will be held in cash to fund future loan growth, higher-yielding securities and other banking operations.

The moves should put the company below $1 billion of assets on Dec. 31 and increase pretax net interest income by $2.8 million in 2024. It should take a little more than two years to earn back the costs tied to the repositioning.

Leave a Reply

Your email address will not be published. Required fields are marked *