Auburn National Bancorporation, Inc.

Overview

• Auburn National Bancorporation, Inc. is a bank holding company registered with the Federal Reserve under the Bank Holding Company Act.
• Incorporated in Delaware in 1990; in 1994 it succeeded its Alabama predecessor as the holding company for AuburnBank.
• AuburnBank has operated since 1907. The Bank is regulated by the Federal Reserve and the Alabama Superintendent and is a member of the Federal Reserve Bank of Atlanta and the Federal Home Loan Bank of Atlanta (FHLB-Atlanta).

Primary business and structure

• The Company’s business is conducted primarily through AuburnBank and its subsidiaries.
• The Company may engage in activities closely related to banking permitted by the Federal Reserve; no immediate plans for other lines of business are stated.
• The Bank’s primary service area is East Alabama, with a focus on Lee County, including Auburn and Opelika.

Corporate offices and website

• Principal executive offices: 100 N. Gay Street, Auburn, Alabama 36830
• Telephone: (334) 821-9200
• Website: www.auburnbank.com

Bank operations and services

Branch network and facilities

• Seven full-service branches located in Auburn, Opelika, Notasulga, and Valley, Alabama.
• A loan production office in Phenix City, Alabama.
• Main campus includes the AuburnBank Center (constructed 2022) with approximately 90,000 square feet, plus back-office operations.

Services offered

• Deposit products: checking, savings, transaction accounts, and certificates of deposit.
• Lending: residential mortgage lending and a portfolio of commercial, financial, agricultural, real estate construction, and consumer loans.
• Electronic banking: online banking, bill payment, online consumer account opening, and other electronic services.
• Payment tools: Visa Checkcards (debit cards) and ATM access; the Bank operates 8 ATMs in its service area.

Market position

• Competes in a market with about 20 national, regional, and community banks in East Alabama.
• Emphasizes local relationships, community presence, local decision-making, and responsive service.
• Held the largest deposit share in Lee County according to FDIC data as of 6/30/2025.

Risk disclosures

• Online banking and other digital services are subject to cybersecurity risks.
• The Bank has not offered services related to Bitcoin or other digital or crypto instruments, stablecoins, or related businesses (as of the reporting).

Employees and human capital

• As of December 31, 2025, the Company and its subsidiaries employed 145 full-time equivalent employees, including 37 officers.
• Employees have an average tenure of about 12 years.
• The Company completed a management transition in 2022 and continues to emphasize competitive compensation and benefits, including a 2024 Equity and Incentive Compensation Plan.

Selected financial and operating data

Loan portfolio and concentrations

• Total commercial real estate (CRE) loans: $325.5 million as of December 31, 2025 (58% of total loans), including $59.6 million of loans on owner-occupied property.
• CRE loans excluding owner-occupied loans: $290.2 million (51% of total loans) at year-end 2024.
• The Bank maintains CRE concentration guidance and related risk management given its high CRE exposure.

Profitability and dividends

• In 2025, the Bank paid cash dividends of approximately $3.8 million to the Company.
• The Bank reported net profits for 2025 (and retained profits for the preceding two calendar years) of $6.5 million, before any required transfers to surplus.

Deposit insurance and regulatory costs

• FDIC DIF reserve ratio was 1.42% at December 31, 2025.
• FDIC insurance premium expense was $0.5 million in both 2025 and 2024.

Capital and compliance

• As of December 31, 2025, the Bank indicated it was “well capitalized” for regulatory purposes.
• The Bank carried a “satisfactory” CRA rating in its public evaluation dated March 3, 2025.

Locations and facilities

• Main campus: downtown Auburn, Alabama; includes AuburnBank Center (approx. 90,000 sq ft), drive-through facility, and parking deck.
• AuburnBank Center: ~46,000 sq ft of Class A office space; ~5,000 sq ft of retail space available for lease (approximately 32,000 sq ft currently leased).

Branches and offices:

• Auburn: Bent Creek Road (owned); South Donahue Avenue (relocated Wal‑Mart Supercenter branch in 2015; ~3,600 sq ft).
• Opelika: Tiger Town location (built 2017; ~5,500 sq ft).
• Notasulga: Notasulga branch (open since 2001; ~1,344 sq ft; leased land).
• Phenix City: loan production office (leased space; opened 2025).
• Valley: Fob James Drive (opened 2011; ~5,000 sq ft).
• Corner Village branch in Auburn opened 2015 and closed December 31, 2024; lease expired January 31, 2025.

ATM network:

• 8 branch-based ATMs plus 1 additional Notasulga ATM.

Regulatory and risk context

• The Company is subject to extensive banking regulation, including the Bank Holding Company Act, Bank Merger Act, Basel III capital rules, and FDIC insurance assessments, with oversight from the Federal Reserve and state regulators.
• The Company emphasizes risk management in credit risk, cybersecurity, liquidity, and regulatory compliance, and monitors potential impacts from macroeconomic conditions, regulatory changes, and technology risks.

Summary

Auburn National Bancorporation, Inc. is the Delaware-incorporated holding company for AuburnBank, an East Alabama community bank with seven branches and a loan production office. The Bank offers traditional deposit and loan products, mortgage lending, and digital banking. As of year-end 2025 the Company employed 145 FTE, held total CRE loans of about $325.5 million (58% of total loans), paid approximately $3.8 million in dividends to the Company in 2025, and reported Bank net profits of about $6.5 million for 2025. The Bank was “well capitalized” at year-end 2025, carried a “satisfactory” CRA rating, and maintains a substantial CRE concentration with ongoing risk management and regulatory compliance focus.