What Auburn National Bancorporation reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
originally opened in September 2004.
expired January 31, 2025.
The rest of Item 2
for approximately 28 vehicles.
Not applicable.
ISSUER PURCHASES OF EQUITY SECURITIES
shareholders during the indicated periods.
Per Share (1)
High
Low
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
T
he Board currently intends to continue its present dividend policies.
the greater of:
reflected in net income; or
the average net income over the preceding four quarters.
.
ot applicable.
OPERATIONS
OVERVIEW
Alabama.
Summary of Results of Operations
(Dollars in thousands, except per share data)
Net interest income (a)
Less: tax-equivalent adjustment
Net interest income (GAAP)
Noninterest income
Total revenue
Noninterest expense
Basic and diluted net earnings per share
Financial Summary
year 2024.
in net occupancy and equipment expense.
of state examination activities, which resulted in additional tax expense.
CRITICAL ACCOUNTING POLICIES
financial position and results of operations.
Allowance for Credit Losses – Loans
Financial Instruments – Credit Losses
. The allowance
,
consolidated financial statements that accompany this report.
560,476
5.50%
568,733
5.23%
228,793
2.16%
248,072
2.19%
Securities - tax-exempt (a)
3.77%
3.70%
Total securities
237,966
2.23%
258,156
2.25%
4.25%
5.24%
83,648
4.28%
5.23%
908,625
4.49%
889,430
4.36%
1.33%
192,702
1.39%
253,668
0.97%
0.86%
184,047
3.20%
195,097
3.46%
1.72%
639,577
1.81%
7.14%
0.48%
1.72%
640,205
1.81%
Net interest income and margin (a)
3.27%
3.06%
Net Interest Income and Margin
be important to our net interest margin during 2026.
Provision for Credit Losses
other loan was partially charged off.
Service charges on deposit accounts
Mortgage lending
Origination income
Servicing fees, net
demand as mortgage interest rates remain elevated.
Noninterest Expense
Salaries and benefits
Net occupancy and equipment
Professional fees
FDIC and other regulatory assessments
technology and systems expenses and loan-related expenses.
o
f state examination activities, which resulted in additional tax expense.
BALANCE SHEET ANALYSIS
Agency obligations
125,644
132,442
Weighted average yield (1):
Agency obligations
1.27%
1.99%
1.52%
1.19%
1.83%
2.22%
2.06%
1.95%
2.00%
2.42%
2.16%
1.26%
1.93%
2.23%
1.94%
(1) Yields are calculated based on amortized cost.
December 31, 2025.
Lessors of 1-4 family residential properties
Multi-family residential properties
Shopping centers/strip malls
42,444
37,349
December 31, 2025, compared to 1.22% at December 31, 2024.
December 31, 2025 and 2024 is presented below.
Allowance for credit losses:
Balance at beginning of period
Charge-offs:
(142)
(7)
(61)
(96)
(114)
(541)
(184)
Recoveries:
Total recoveries
Net (charge-offs) recoveries
(398)
Provision for credit losses - Loans
Ending balance
as a % of loans
as a % of nonperforming loans
Net charge-offs as a % of average loans
Nonperforming assets:
Nonperforming (nonaccrual) loans
as a % of loans and other real estate owned
as a % of total assets
Nonperforming loans as a % of total loans
Accruing loans 90 days or more past due
Nonaccrual loans:
The Company had no other real estate owned at December 31, 2025 and 2024, respectively.
Deposits
Noninterest bearing demand
268,026
260,874
214,827
199,883
Money market
170,352
153,916
Savings
89,904
Certificates of deposit under $250,000
97,458
103,594
Certificates of deposit and other time deposits of $250,000 or more
79,343
87,653
deposits at December 31, 2025 and 2024, respectively.
Maturity of:
3 months or less
Over 3 months through 6 months
Over 6 months through 12 months
Over 12 months
79,343
Other Borrowings
loans on March 11, 2024.
CAPITAL ADEQUACY
The Company paid cash dividends of $1.08 per share in 2025 and 2024.
MARKET AND LIQUIDITY RISK MANAGEMENT
risk management.
Interest Rate Risk Management
Earnings simulation
earnings simulations and estimates.
+/- 20% for a gradual change of 400 basis points
+/- 15% for a gradual change of 300 basis points
+/- 10% for a gradual change of 200 basis points
+/- 5% for a gradual change of 100 basis points
Changes in Interest Rates
Net Interest Income % Variance
(1.97)
(3.13)
(4.13)
(5.16)
noted above.
interest rates, or market and competitive conditions.
such that our EVE should not decrease from our base case by more than the following:
35% for an instantaneous change of +/- 400 basis points
30% for an instantaneous change of +/- 300 basis points
25% for an instantaneous change of +/- 200 basis points
15% for an instantaneous change of +/- 100 basis points
compared to the baseline EVE at December 31, 2025.
Changes in Interest Rates
EVE % Variance
(3.41)
(9.01)
(17.83)
(27.26)
preferences and behaviors as a result of changes and expected changes in interest rates.
investment, borrowing, and capital policies.
Liquidity Risk Management
restrictions.
Payments due by period
3 to 5
More than
5 years
Contractual obligations:
Deposit maturities (1)
910,388
Operating lease obligations
923,083
910,443
requirements over the next 12 months.
Off-Balance Sheet Arrangements
Residential mortgage lending and servicing activities
entitled to forbearance.
mortgage investors.
governing our rights and duties as servicer.
of repurchase requests as well as the delinquency rates in our investor portfolios.
requests at December 31, 2025.
Effects of Inflation and Changing Prices
policy and interest rates.
CURRENT ACCOUNTING DEVELOPMENTS
ASU 2025-01,
40): Clarifying the Effective Date,
Income Statement Reporting Comprehensive
ASU 2025-06,
ASC 2025-11,
is intended to provide clarity about the current
s
tatements.
total revenue and the calculation of the efficiency ratio.
GAAP financial measures from GAAP to non-GAAP is presented below.
