Auburn National Bancorporation (AUBN) investor relations material

Executive summary

• Net earnings for the first six months of 2026 rose 34% year-over-year to $4.5 million, with EPS at $1.29, up from $0.96 in 2025.

• Second quarter 2026 net earnings were $2.3 million ($0.66 per share), up 27% year-over-year and 5% sequentially.

• Growth in average interest-earning assets, improved net interest margin, and strong revenue growth drove higher profitability.

Financial highlights

• Net interest income (tax-equivalent) for H1 2026 was $15.8 million, up 9% year-over-year; Q2 2026 net interest income was $8.0 million, up 8% year-over-year.

• Net interest margin improved to 3.31% for H1 2026 and 3.33% for Q2 2026.

• Noninterest income increased to $1.8 million in H1 2026 and $0.9 million in Q2 2026, mainly from higher mortgage lending and bank-owned life insurance income.

• Noninterest expense rose to $12.0 million in H1 2026 and $6.1 million in Q2 2026, primarily due to a $0.4 million loss contingency accrual.

• Total assets reached $1.1 billion and total deposits $988.3 million at June 30, 2026.

Outlook and guidance

• Management expects continued fluctuations in interest rates, inflation, and monetary policy to impact net interest margin and deposit costs.

• Asset/liability management strategies are in place to manage interest rate risk and maintain profitability.

• Liquidity and capital positions are considered strong, with adequate sources to meet obligations over the next twelve months.

• Management emphasized continued strong asset quality, capital, and liquidity.

• Forward-looking statements caution about risks from economic conditions, interest rates, and regulatory changes.