Core Insights - Auburn National Bancorporation, Inc. reported a net income of $1.4 million, or $0.39 per share, for Q1 2024, a significant recovery from a net loss of $(4.0) million in Q4 2023 and a decrease from net earnings of $2.0 million in Q1 2023 [1][2][14] Financial Performance - Net interest income (tax-equivalent) for Q1 2024 was $6.7 million, an increase of 8% from Q4 2023, primarily driven by a rise in net interest margin to 3.04% from 2.65% [1][3][17] - Annualized loan growth was reported at 7%, with average loans increasing to $560.8 million, a 2% rise from the previous quarter [1][3] - Noninterest income improved to $0.9 million in Q1 2024, compared to a loss of $(5.4) million in Q4 2023, largely due to the prior quarter's balance sheet repositioning [4][14] Asset Quality - Nonperforming assets were $0.9 million, or 0.09% of total assets, showing improvement from $2.7 million, or 0.26%, a year earlier [3][6] - The provision for credit losses was $0.3 million in both Q1 2024 and Q4 2023, compared to $0.1 million in Q1 2023 [4][14] Capital and Equity - Total assets increased to $979.0 million at the end of Q1 2024, up from $975.3 million at the end of Q4 2023 [5][6] - Stockholders' equity decreased to $74.5 million, or $21.32 per share, from $76.5 million, or $21.90 per share, at the end of Q4 2023 [7][14] Deposits and Funding - Period-end deposits rose by $3.4 million to $899.7 million, although down from $939.2 million a year earlier, primarily due to the sale of reciprocal deposits [1][6] - The company had no FHLB advances or other wholesale borrowings outstanding as of March 31, 2024 [6][9]

Economic Conditions - The unemployment rate in Lee County was 2.4% at year-end 2023, indicating a strong local labor market[25]. - The local economy is positively influenced by the automotive industry, with potential risks from interest rate increases affecting sales[28]. - The economic conditions and cyclicality, including inflation and interest rates, may adversely affect the industry in 2024[169]. - Inflation is running at levels unseen in decades, well above the Federal Reserve's long-term inflation goal of 2.0% annually[170]. - The Federal Reserve has been raising target federal funds interest rates since March 2022 to combat inflation[170]. Commercial Real Estate (CRE) Loans - The Bank's commercial real estate (CRE) loans totaled $287.3 million, representing 52% of total loans as of December 31, 2023[28]. - The Bank's loans on owner-occupied property amounted to $66.8 million, included in the total CRE loans[28]. - The Bank's total CRE loans amounted to $293.0 million, which is approximately 264% of the Bank's total risk-based capital as of December 31, 2023[139]. - The company had 39.6% of its loan portfolio in commercial real estate (CRE) loans at year-end 2023, down from 40.4% in 2022 and 42.6% in 2021[193]. - The company is subject to regulatory scrutiny regarding its concentration of CRE loans, which could lead to higher allowances for possible losses[193]. Regulatory Environment - The company is subject to extensive regulation under federal and state laws, which may materially affect its business and financial condition[33]. - The Federal Reserve requires that distributions, including dividends, are only permissible if the Bank's capital conservation buffer exceeds 2.5%[83]. - The Company is subject to various corporate governance and financial reporting requirements under the Sarbanes-Oxley Act, which includes annual reporting on internal controls[81]. - The Bank's compliance with anti-money laundering laws is critical for merger and acquisition proposals, with potential sanctions for violations reaching up to $1 million[72]. - The new CRA regulations, finalized on October 24, 2023, will become effective on January 1, 2026, with data reporting requirements starting on January 1, 2027[54]. Financial Performance - Total cash dividends paid by the Bank to the Company during 2023 amounted to approximately $3.8 million, with net profits for the year and retained profits totaling $8.2 million[85]. - Nonperforming loans were 0.16% of total loans as of December 31, 2023, with no other real estate owned due to foreclosures[174]. - The allowance for loan losses may prove inadequate due to unanticipated adverse changes in the economy, including inflation and higher interest rates[176]. - The company has not reported any material weaknesses in its financial reporting controls as of December 31, 2022[82]. - The Company recorded FDIC insurance premiums expenses of $0.5 million in 2023, an increase from $0.3 million in 2022, reflecting a uniform increase of 2 basis points in the initial base deposit insurance assessment rate schedules[135]. Employee and Management - As of December 31, 2023, the company had 149.5 full-time equivalent employees, including 38 officers, with an average term of service of approximately 10 years[29]. - The company emphasizes competitive compensation and benefits, including employer matches for 401(k) contributions and internal promotions[32]. - The company successfully transitioned management in 2022, with the former CEO becoming Chairman and the CFO succeeding him as President[31]. - The company is committed to maintaining employee health and safety, implementing remote work access during the COVID-19 pandemic[29]. - The company received a federal employee retention tax credit of approximately $1.6 million in 2022 due to little turnover during the COVID-19 pandemic[30]. Risk Management - The Bank's online banking services are subject to cybersecurity risks, highlighting the importance of data security measures[21]. - The Bank has established underwriting standards to manage risks associated with various types of lending, including commercial and consumer loans[27]. - The company has developed risk management and internal audit policies to mitigate material risks and losses, but acknowledges that these may not be comprehensive or timely in identifying all risks[204]. - The new CECL models used by the company are based on assumptions and projections that may not operate properly, potentially leading to inaccurate predictions of future exposures[204]. - The company may face increased costs and risks due to potential changes in mortgage servicing rights requirements[182]. Market Competition - The Bank holds a 20.1% share of the Auburn-Opelika MSA's deposits as of June 30, 2023, making it the largest provider in the area[22]. - The company competes in a highly competitive market with 19 banks in Lee County, including major national banks[195]. - The company’s future success is dependent on local economic conditions, which significantly affect its commercial, real estate, and construction loans[196]. - The company may face challenges in acquiring other businesses due to competition from larger financial institutions and regulatory approvals[198]. - The company must invest in technology to remain competitive, but it may have fewer resources than larger competitors to do so[201]. Community Engagement - The Bank received a "satisfactory" CRA rating in its latest public evaluation dated February 28, 2022, with satisfactory ratings on both lending and community development tests[50]. - The National Community Reinvestment Coalition reported executing over 21 community benefit plans with banking organizations, valued at approximately $580 billion for low- and moderate-income communities[52]. - The new performance evaluation framework for intermediate banks includes two tests: the Retail Lending Test and the Intermediate Bank Community Development Test[56]. - The new CRA rules allow for consideration of community development loans, investments, and services regardless of location, depending on the bank's responsiveness to community needs[59]. - The new regulations exempt small and intermediate banks from certain data requirements that apply to larger banks with assets over $2 billion[61].

AUBURN, Ala., Feb. 13, 2024 (GLOBE NEWSWIRE) -- On February 13, 2024, the Board of Directors of Auburn National Bancorporation, Inc. (the "Company") (NASDAQ:AUBN) declared a first quarter $0.27 per share cash dividend, payable March 25, 2024 to shareholders of record as of March 8, 2024. About Auburn National Bancorporation, Inc. Auburn National Bancorporation, Inc. (the "Company") is the parent company of AuburnBank (the "Bank"), with total assets of approximately $975 million. The Bank is an Alabama stat ...

AUBURN, Ala., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Auburn National Bancorporation (NASDAQ:AUBN) reported a net loss of $4.0 million, or $1.14 per share, for the fourth quarter of 2023. The quarterly loss reflects the sale of $117.6 million of available-for-sale securities for an after-tax loss of $4.7 million or $1.36 per share. Proceeds of $111.3 million from the securities sale were used to repay high-cost wholesale funding and sell high-cost reciprocal deposits, with the remaining amounts held in cash to fu ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended September 30, 2023 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period __________ to __________ Commission File Number: 0-26486 Auburn National Bancorporation, Inc. (Exact Name of Registrant as Specified in Its Ch ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2023 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period __________ to __________ Commission File Number: 0-26486 Auburn National Bancorporation, Inc. (Exact Name of Registrant as Specified in Its Charter ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2023 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period __________ to __________ Commission File Number: 0-26486 Auburn National Bancorporation, Inc. (Exact Name of Registrant as Specified in Its Charte ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934. For the quarterly period ended December 31, 2022 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period __________ to __________ Commission File Number: 0-26486 Auburn National Bancorporation, Inc. Securities registered pursuant to Section 12 (b) of the Act: ...