Nasdaq:AUBN
AUBURN NATIONAL BANCORPORATION, INC
Auburn National Bancorporation is a local community bank focused on providing tailored financial solutions to its regional customer base in Alabama.
Key Metrics
Investment Thesis
Bull Case
The stock offers value through its robust capital position with $78.3M in shareholders' equity against total assets of $977.3M, while the recent surge in net income to $6.4M suggests improving profitability trends that could attract income-focused investors seeking stable regional banking exposure.
Bear Case
Investors should be cautious due to the extremely low revenue figure of $0.6M which may indicate reporting anomalies or a shift in accounting treatment, combined with high interest expense of $11.6M that significantly compresses margins and limits growth potential compared to larger regional peers.
About AUBURN NATIONAL BANCORPORATION, INC
AUBURN NATIONAL BANCORPORATION (AUBN) operates as a community bank primarily serving the Auburn, Alabama region, offering traditional banking products including checking, savings, loans, and wealth management services to individuals and small businesses.
Analysis
Management Discussion
Despite a significant drop in reported annual revenue of $0.6M compared to historical norms, the company demonstrated resilience with net profit reaching $6.4M in 2024 after a dip in 2023, indicating strong operational efficiency and effective expense management despite low top-line growth.
Industry Overview
The community banking sector is characterized by high competition from national banks and fintech disruptors, yet it retains value through its ability to serve niche local markets with personalized service that large institutions often overlook.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $598.0K | $603.0K | $614.0K |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $598.0K | $603.0K | $614.0K |
| Operating Expenses | $-12.3M | $-15.0K | $-7.8M |
| Operating Income | $12.8M | $618.0K | $8.4M |
| D&A | $1.5M | $1.7M | $1.9M |
| Depreciation | $1.2M | $1.4M | $1.7M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $2.4M | $8.0M | $11.6M |
| Pre-Tax Income | $12.8M | $618.0K | $8.4M |
| Income Tax | $2.5M | $-777.0K | $2.0M |
| Continuing Ops | $10.3M | $1.4M | $6.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $10.3M | $1.4M | $6.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $10.3M | $1.4M | $6.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| PP&E (Net) | $46.6M | $45.5M | $45.9M |
| Operating Leases | $588.0K | $485.0K | $200 |
| Total Assets | $1.02B | $975.3M | $977.3M |
| Total Liabilities | $955.8M | $898.7M | $899.0M |
| Shareholders' Equity | $68.0M | $76.5M | $78.3M |
| Retained Earnings | $116.6M | $113.4M | $115.8M |
| AOCI | $-40.9M | $-29.0M | $-29.6M |
| Treasury Stock | $11.5M | — | — |
| Total L&E | $1.02B | $975.3M | $977.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $10.3M | $1.4M | $6.4M |
| Non-Cash Adjustments | $-140.0K | $16.2M | $2.6M |
| Working Capital Changes | $774.0K | $-5.7M | $1.8M |
| Cash from Operations | $11.0M | $11.9M | $10.8M |
| Capital Expenditures | $7.0M | $418.0K | $2.1M |
| Cash from Investing | $-91.0M | $91.4M | $16.9M |
| Share Buybacks | $504.0K | $229.0K | $0 |
| Cash from Financing | $-49.0M | $-59.2M | $-5.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-129.0M | $44.1M | $22.0M |
| Beginning Cash | $156.3M | $27.3M | $71.4M |
| Ending Cash | $27.3M | $71.4M | $93.4M |
Frequently Asked Questions
How does AUBURN NATIONAL BANCORPORATION, INC make money?
The company derives revenue primarily from net interest income generated by its loan portfolio and interest-earning deposits, supplemented by non-interest income such as fees from lending services, wealth management advisory, and transaction processing.
What are the main risks for AUBN?
Interest rate volatility impacting net interest margins given the low reported revenue relative to assets, concentration risk within a single geographic market making it susceptible to local economic downturns, and potential regulatory compliance costs inherent to banking operations.
What is AUBN's competitive advantage?
Deep local community knowledge allowing for personalized customer service, a stable regional deposit base that reduces funding costs, and strong relationships with local small business owners and government entities in the Auburn metro area.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.