Auburn National Bancorp Posts Strong Q3 Earnings, Asset Growth

TL;DR

**AUBN is a solid regional bank showing strong earnings and asset growth, making it a buy for stability-focused investors.**

AI Summary

Auburn National Bancorporation, Inc. (AUBN) reported a strong third quarter and nine-month period ended September 30, 2025, demonstrating growth in net earnings and total assets. For the quarter, net earnings increased by 28.6% to $2.227 million from $1.732 million in Q3 2024. Nine-month net earnings rose by 15.6% to $5.590 million from $4.837 million in the prior year. Total assets grew to $1.011 billion as of September 30, 2025, up from $977.324 million at December 31, 2024. Net interest income for the quarter increased by 11.5% to $7.572 million, and for the nine months, it rose by 9.0% to $21.961 million. The company saw a significant increase in cash and cash equivalents, reaching $142.925 million, up from $93.354 million at year-end 2024. Despite a slight decrease in total loans to $557.912 million from $564.017 million, the allowance for credit losses also decreased to $6.691 million from $6.871 million, indicating improved credit quality. Stockholders' equity increased by 14.5% to $89.613 million from $78.292 million at December 31, 2024, driven by net earnings and other comprehensive income.

Why It Matters

AUBN's solid earnings growth and increased asset base signal a healthy regional bank, which is positive for investors seeking stable returns in the financial sector. The improved credit quality, evidenced by a lower allowance for credit losses, suggests effective risk management and could lead to higher investor confidence. For employees and customers, a financially robust bank like AuburnBank implies stability and continued service. In a competitive banking landscape, AUBN's performance, particularly its net interest income growth, indicates its ability to effectively manage interest rate dynamics and maintain profitability, potentially attracting more local business and deposits.

Risk Assessment

Risk Level: low — The risk level is low due to consistent net earnings growth, a healthy increase in total assets to over $1 billion, and a decrease in the allowance for credit losses from $6.871 million to $6.691 million, indicating improving credit quality. Furthermore, the company explicitly states it does not intend to sell securities with unrealized losses, mitigating immediate market risk.

Analyst Insight

Investors should consider AUBN as a stable investment in the regional banking sector, given its consistent earnings growth and strong balance sheet. The increase in cash and cash equivalents provides liquidity, and the improved credit quality reduces potential downside. Monitor future interest rate changes and their impact on net interest income.

Financial Highlights

revenue

$7.572M

total Assets

$1.011B

net Income

$2.227M

eps

$0.64

cash Position

$142.925M

revenue Growth

+11.5%

Revenue Breakdown

Key Numbers

• $1.011B — Total Assets (Increased from $977.324M at Dec 31, 2024, showing 3.5% growth.)
• $2.227M — Net Earnings (Q3 2025) (Increased 28.6% from $1.732M in Q3 2024.)
• $5.590M — Net Earnings (9M 2025) (Increased 15.6% from $4.837M in 9M 2024.)
• $7.572M — Net Interest Income (Q3 2025) (Increased 11.5% from $6.790M in Q3 2024.)
• $21.961M — Net Interest Income (9M 2025) (Increased 9.0% from $20.156M in 9M 2024.)
• $142.925M — Cash and Cash Equivalents (Increased from $93.354M at Dec 31, 2024, a 53.1% rise.)
• $6.691M — Allowance for Credit Losses (Decreased from $6.871M at Dec 31, 2024, indicating improved credit quality.)
• $89.613M — Total Stockholders' Equity (Increased 14.5% from $78.292M at Dec 31, 2024.)
• $0.64 — Basic and Diluted EPS (Q3 2025) (Increased from $0.50 in Q3 2024.)
• 3,493,699 — Common Shares Outstanding (Consistent at September 30, 2025.)

Key Players & Entities

• Auburn National Bancorporation, Inc. (company) — Registrant
• AuburnBank (company) — Wholly owned subsidiary
• NASDAQ Global Market (regulator) — Exchange where AUBN Common Stock is registered
• Lee County, Alabama (person) — Primary geographic loan distribution
• U.S. Securities and Exchange Commission (regulator) — Regulatory body for 10-Q filing
• Federal Home Loan Bank of Atlanta (company) — Source of FHLB stock
• Federal Reserve Bank of Atlanta (company) — Source of FRB stock
• $1.011 billion (dollar_amount) — Total assets as of September 30, 2025
• $2.227 million (dollar_amount) — Net earnings for the quarter ended September 30, 2025
• $5.590 million (dollar_amount) — Net earnings for the nine months ended September 30, 2025

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The company's primary credit risk stems from its loan portfolio. While the allowance for credit losses decreased to $6.691 million from $6.871 million, indicating improved credit quality, a significant portion of assets remains in loans ($557.912 million). Deterioration in economic conditions or specific borrower defaults could negatively impact asset quality and profitability.
• Interest Rate Sensitivity [medium — market]: As a financial institution, AUBN is exposed to interest rate risk. Fluctuations in interest rates can affect net interest income and the fair value of securities. The company reported a net interest income of $7.572 million for Q3 2025, an increase of 11.5%, suggesting some resilience, but significant rate shifts could still pose a risk.
• Operational and Cybersecurity Risks [medium — operational]: The company relies on its information technology systems to conduct business. Disruptions due to system failures, cyber-attacks, or data breaches could lead to financial losses, regulatory penalties, and reputational damage. While not explicitly detailed in this excerpt, these are standard risks for financial institutions.
• Regulatory Compliance [high — regulatory]: As a bank holding company, AUBN is subject to extensive regulation by federal and state authorities. Changes in regulations, compliance failures, or increased compliance costs could adversely affect operations and profitability. The company's ability to maintain compliance is crucial for its continued operation.

Industry Context

Auburn National Bancorporation operates in the community banking sector, primarily serving Lee County, Alabama. This sector is characterized by local market focus, relationship-based lending, and competition from larger regional and national banks, as well as credit unions. Industry trends include digital transformation, evolving regulatory landscapes, and the ongoing impact of interest rate environments on net interest margins.

Regulatory Implications

As a regulated financial institution, AUBN is subject to oversight from various bodies, including the Federal Reserve and state banking authorities. Compliance with capital requirements, lending regulations, and consumer protection laws is paramount. Any changes in these regulations or enforcement actions could impact AUBN's operations, profitability, and strategic decisions.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the drivers of net interest income growth.
3. Evaluate the significant increase in cash and cash equivalents.
4. Assess the impact of noninterest income trends.

Key Dates

• 2025-09-30: Quarter and Nine-Month Period Ended — Represents the reporting period for the financial results, showing significant growth in net earnings and total assets.
• 2024-12-31: Year-End Financial Position — Provides the comparative balance sheet figures against which the current period's asset and equity growth are measured.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A core measure of a bank's profitability from its lending and borrowing activities. AUBN saw an 11.5% increase in Q3 2025.)

Allowance for Credit Losses

An estimate of the amount of loans in a portfolio that are expected to be uncollectible. (Indicates the bank's assessment of potential loan defaults. A decrease suggests improved credit quality, as seen with AUBN's reduction to $6.691 million.)

Stockholders' Equity

The net worth of a company, representing the total assets minus total liabilities. (Reflects the owners' stake in the company. AUBN's equity grew by 14.5% to $89.613 million, driven by earnings.)

Cash and Cash Equivalents

Highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (Represents a bank's immediate liquidity. AUBN's cash position significantly increased to $142.925 million.)

Year-Over-Year Comparison

Compared to the prior year, Auburn National Bancorporation, Inc. has demonstrated robust performance. Net earnings for the nine months ended September 30, 2025, increased by 15.6% to $5.590 million, and total assets grew to $1.011 billion. Net interest income also showed positive momentum, rising 9.0% for the nine-month period. The company's cash position has significantly strengthened, increasing by 53.1% to $142.925 million, while stockholders' equity saw a healthy 14.5% increase, indicating improved financial health and capital strength.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 AUBN NASDAQ Global Market Indicate

Filing Documents

• d11675d10q.htm (10-Q) — 2884KB
• d11675dex311.htm (EX-31.1) — 15KB
• d11675dex312.htm (EX-31.2) — 15KB
• d11675dex321.htm (EX-32.1) — 6KB
• d11675dex322.htm (EX-32.2) — 7KB
• 0001193125-25-277883.txt ( ) — 12094KB
• aubn-20250930.xsd (EX-101.SCH) — 44KB
• aubn-20250930_cal.xml (EX-101.CAL) — 71KB
• aubn-20250930_def.xml (EX-101.DEF) — 138KB
• aubn-20250930_lab.xml (EX-101.LAB) — 352KB
• aubn-20250930_pre.xml (EX-101.PRE) — 276KB
• d11675d10q_htm.xml (XML) — 3631KB

Financial Statements

Financial Statements Consolidated Balance Sheets (Unaudited) as of September 30, 2025 and December 31, 2024 3 Consolidated Statements of Earnings (Unaudited) for the quarter and nine months ended September 30, 2025 and 2024 4 Consolidated Statements of Comprehensive Income (Unaudited) for the quarter and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Stockholders' Equity (Unaudited) for the quarter and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 7

Notes to Consolidated Financial Statements (Unaudited

Notes to Consolidated Financial Statements (Unaudited ) 8 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Table 1 – Explanation of Non-GAAP Financial Measures 41 Table 2 – Selected Quarterly Financial Data 42 Table 3 – Selected Financial Data 43 Table 4 – Average Balances and Net Interest Income Analysis – for the quarter ended September 30, 2025 and 2024 44 Table 5 – Average Balances and Net Interest Income Analysis – for the nine months ended September 30, 2025 and 2024 45 Table 6 – Volume and Rate Variance Analysis for the quarter and nine months ended September 30, 2025 46 46 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4

Controls and Procedures

Controls and Procedures 47

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 47 Item 1A

Risk Factors

Risk Factors 47 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3 Defaults Upon Senior Securities 48 Item 4 Mine Safety Disclosures 48 Item 5 Other Information 48 Item 6 Exhibits 49 Table of Contents 3 PART 1. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS AUBURN NATIONAL BANCORPORATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) September 30, December 31, (Dollars in thousands, except share data) 2025 2024 Assets: Cash and due from banks $ 15,016 $ 15,142 Federal funds sold 15,101 37,200 Interest-bearing bank deposits 112,808 41,012 Cash and cash equivalents 142,925 93,354 Securities available-for-sale 236,420 243,012 Loans held for sale 145 — Loans 557,912 564,017 Allowance for credit losses ( 6,691 ) ( 6,871 ) Loans, net 551,221 557,146 Premises and equipment, net 45,418 45,931 Bank-owned life insurance 17,822 17,513 Other assets 17,233 20,368 Total assets $ 1,011,184 $ 977,324 Liabilities: Deposits: Noninterest-bearing $ 266,793 $ 260,874 Interest-bearing 650,473 634,950 Total deposits 917,266 895,824 Accrued expenses and other liabilities 4,305 3,208 Total liabilities 921,571 899,032 Stockholders' equity: Preferred stock of $ .01 par value; authorized 200,000 shares; no shares issued — — Common stock of $ .01 par value; authorized 8,500,000 shares; issued 3,957,135 shares 39 39 Additional paid-in capital 3,827 3,802 Retained earnings 118,520 115,759 Accumulated other comprehensive loss, net ( 21,072 ) ( 29,607 ) Less treasury stock, at cost - 463,436 shares at both September 30, 2025 and December 31, 2024, respectively ( 11,701 ) ( 11,701 ) Total stockholders' equity 89,613 78,292 Total liabilities and stockholders' equity $ 1,011,184 $ 977,324 S ee accompanying notes to consolidated financial statements Table of Contents 4 AUBURN NATIONAL BANCORPORATION, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) Quarter ended September 30, Nine months ended September 30, (Dollars in thousands, except share and per share data) 2025 2024 2025 2024 Interest income: Loans, including fees $ 7,793 $ 7,641 $ 23,012 $ 2

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Auburn National Bancorporation, Inc. (the "Company") provides a full range of banking services to individuals and commercial customers in Lee County, Alabama and surrounding areas through its wholly owned subsidiary, AuburnBank (the "Bank"). The Company does not have any segments other than banking that are considered material. Basis of Presentation and Use of Estimates The unaudited consolidated financial statements in this report have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete

financial statements

financial statements. The unaudited consolidated financial statements include, in the opinion of management, all adjustments necessary to present a fair All such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results of operations that the Company and its subsidiaries may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany transactions and accounts are eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of allowance for credit losses on loans and investment securities, the fair value of financial instruments, and the valuation of deferred tax assets and other real estate owned ("OREO"). Subsequent Events The Company has evaluated the effects of events and transactions through the date of this filing that have occurred subsequent to September 30, 2025. The Company does not believe there were any material subsequent events during this period that would have required further recognition or disclosure in the unaudited consolidated financial statements inc

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