• Bank of America for East Alabama.
• The local Wells Fargo for Auburn and surrounding communities.

• Deposit Accounts: AuburnBank offers a variety of deposit accounts including checking, savings, transaction deposit accounts, and certificates of deposit.
• Loan Products: The company provides diverse loan products such as commercial, financial, agricultural, real estate construction, and consumer loans.
• Digital Banking Services: Customers can access online banking, bill payment, and other electronic services for convenient account management.
• ATM Services: Automated teller services are available for cash withdrawals and other banking transactions.
• Debit Cards: Debit cards are provided to facilitate easy and secure transactions for account holders.
• Safe Deposit Boxes: Secure safe deposit boxes are offered for the storage of valuable items.

Auburn National Bancorp (AUBN) operates as a bank holding company for AuburnBank, providing a variety of banking products and services primarily within East Alabama. As a bank, its customer base consists of a broad range of individuals and businesses rather than a few major corporate clients. Therefore, it sells primarily to individuals and local businesses.

The company serves the following categories of customers:

• Individual Consumers: This category includes residents of East Alabama who utilize personal checking and savings accounts, certificates of deposit, consumer loan products (e.g., auto loans, personal loans), debit cards, online banking, and other electronic services.
• Commercial & Small Businesses: This segment comprises various businesses in the region that seek commercial loans, financial loans, real estate construction loans, business checking accounts, and other related banking services.
• Agricultural Businesses/Farmers: Given the specific mention of agricultural loan products, this category serves farmers and agricultural enterprises within its operating area, providing tailored financial support for their operations.

David A. Hedges, President and Chief Executive Officer

Mr. Hedges was appointed President and Chief Executive Officer of Auburn National Bancorporation, Inc. and AuburnBank effective January 1, 2023. He previously served as Executive Vice President and Chief Financial Officer since December 2015. Prior to that, he held various positions with the Company and the Bank since 2006, and was the Company's principal financial officer since 2007. Before joining Auburn National Bancorp, Mr. Hedges worked at KPMG LLP in their financial services audit practice from 2002 to 2006.

William James IV Walker, Senior Vice President and Chief Financial Officer

Mr. Walker was appointed Senior Vice President and Chief Financial Officer effective January 1, 2023. He joined the Company in December 2015 as Senior Vice President and Chief Accounting Officer.

Robert W. Dumas, Chairman of the Board

Mr. Dumas serves as Chairman of the Board of Auburn National Bancorporation, Inc. and AuburnBank. He retired as President and Chief Executive Officer of the Company and AuburnBank on December 31, 2022, after a 39-year career. Mr. Dumas began his career with AuburnBank in 1984, holding numerous leadership roles, including President and Chief Executive Officer of AuburnBank since 2001 and of the Company since 2017. He was appointed Chairman of the Board in January 2020.

Robert Smith, Senior Vice President and Chief Lending Officer of AuburnBank

Mr. Smith holds the position of Senior Vice President and Chief Lending Officer of AuburnBank.

Shannon O'Donnell, Senior Vice President

Ms. O'Donnell is a Senior Vice President within the company.

Key Risks to Auburn National Bancorp (AUBN)

Auburn National Bancorp (AUBN), as a community bank operating in East Alabama, faces several key risks inherent to the banking industry and its specific market. These risks are primarily related to the evolving regulatory landscape, interest rate fluctuations impacting profitability, and increasing cybersecurity threats.

1. Regulatory Burden and Compliance Risk

One of the most significant challenges for Auburn National Bancorp, like many community and regional banks, is the heavy and evolving regulatory burden. Bankers in Alabama have consistently cited "regulatory burden" as the biggest threat to their business model, with "political and regulatory uncertainty" also being a major impediment. The complexity of regulations, including those stemming from the Dodd-Frank Act and anti-money laundering (BSA/AML) compliance, significantly increases operational costs and requires substantial time and resources for adherence. Changes in regulations or new state-level compliance mechanisms, layered onto existing federal oversight, can further complicate operations and increase exposure to risk.

2. Interest Rate Risk and Net Interest Margin Pressure

Auburn National Bancorp is exposed to considerable interest rate risk, which directly impacts its net interest margin—a key measure of bank profitability. Elevated interest rates lead to increased deposit costs, squeezing bank margins. The cost of funds has become a pressing external risk due to restrictive monetary policy and heightened competition for deposits. Declining deposit levels and a shift towards higher-yielding accounts further contribute to increased funding costs and liquidity pressures for community banks. This environment makes it challenging for banks to maintain healthy net interest margins.

3. Cybersecurity Risks

Cybersecurity is a paramount internal risk for community banks, including Auburn National Bancorp. With increasing reliance on digital banking services and technology, banks become more vulnerable to sophisticated cyber threats such as ransomware attacks, phishing schemes, and data breaches. Community banks often operate with smaller IT budgets, making it difficult to keep pace with advanced and evolving cyber threats. A successful cyberattack could lead to significant financial losses, reputational damage, and regulatory penalties.

The rise of digital-only banks and fintech companies poses a significant emerging threat to Auburn National Bancorp. Digital-only banks (neobanks) operate without the overhead of physical branches, allowing them to offer more competitive rates and user-friendly, mobile-first experiences that attract customers seeking convenience and lower fees, thereby challenging Auburn National Bancorp's deposit acquisition. Simultaneously, fintech lending platforms leverage advanced technology and alternative data to provide faster, more streamlined, and often specialized loan products, diverting potential borrowers for consumer, commercial, and real estate loans from traditional institutions like Auburn National Bancorp.

• Loan Growth: The company has an improved outlook for loan growth in 2026, building on prior period increases in average loans. This sustained growth in its loan portfolio is expected to contribute positively to net interest income.
• Net Interest Margin (NIM) Expansion: Auburn National Bancorp has demonstrated consistent improvement in its net interest margin, which is a key component of its profitability. This improvement is primarily attributed to enhanced yields on interest-earning assets and a reduction in the cost of interest-bearing deposits. Continued efforts in this area are anticipated to further boost net interest income.
• Digital Banking Initiatives: The company is actively progressing with its digital banking initiatives, including the successful rollout of services like online account opening. These efforts are expected to enhance operational efficiency, improve customer convenience, and expand access to banking services, which can lead to increased customer acquisition and retention, thereby driving revenue.
• Leveraging Local Economic Growth: Auburn National Bancorp is strategically positioned to capitalize on the robust local growth opportunities in East Alabama. The region benefits from new job creation and strong wage gains, particularly anchored by Auburn University, which is expected to fuel demand for the bank's commercial, financial, agricultural, real estate, and consumer loan products, as well as other financial services.
• Non-Interest Income from Office Space Leasing: The AuburnBank Center, the company's new headquarters completed in 2022, includes additional office space that is leased to other tenants. This arrangement provides a consistent stream of non-interest income for Auburn National Bancorp.

Share Repurchases

• Auburn National Bancorporation authorized a new stock repurchase program on April 12, 2022, for up to $5 million of its common stock. This program was set to expire on April 15, 2024, or when the authorized amount was expended, or the program was terminated or replaced.
• The company repurchased $0.2 million of common stock since December 31, 2022, leading to a reduction of 10,108 outstanding common shares by December 31, 2023.

Share Issuance

• Auburn National Bancorporation operates a Dividend Reinvestment Plan (DRIP) that enables shareholders to automatically reinvest dividends and acquire additional shares through optional cash payments.
• As of August 11, 2025, the company had 3,493,699 common shares outstanding.

Outbound Investments

• The company held nonmarketable equity investments, including stock in the FHLB-Atlanta, Federal Reserve Bank, and a privately held financial institution, with carrying amounts of $1.4 million at December 31, 2023, and December 31, 2024, and $1.2 million at December 31, 2022.
• In December 2023, Auburn National Bancorporation executed a balance sheet repositioning by selling approximately $117.6 million of available-for-sale securities. The proceeds were primarily used to repay wholesale funding and to increase cash reserves for future banking operations, including loan growth.

Capital Expenditures

• Auburn National Bancorporation completed the move into its new 90,000 square foot AuburnBank Center in downtown Auburn in June 2022, signifying a notable investment in premises.
• The company intends to invest in technology over the next few years to improve customer service.
• Auburn National Bancorporation plans to invest in its business, people, and community in 2025 to capitalize on local growth opportunities.