AUBURN NATIONAL BANCORPORATION, INC 10-K

ITEM 1B. UNRESOLVED STAFF COMMENTS None. ITEM 2. DESCRIPTION OF PROPERTY The Bank conducts its business from its main office and seven full-service branches. The Bank also operates loan production offices in Auburn and Phenix City, Alabama. The Bank owns its main office building site, which is located in downtown Auburn, Alabama. During 2020 the main office was demolished and a temporary main office branch was constructed in the AuburnBank Center (the “Center”). The Bank also owns the Center, which was located next to the Bank’s recently demolished main office. The Center has approximately 23,000 square feet of space. All of the Bank’s mortgage servicing, data processing activities, and other operations, are located in the Center. The temporary main office branch offers the full line of the Bank’s services and has one ATM. The Bank’s drive-through facility located on the main office campus was constructed in October 2012. This drive-through facility has five drive-through lanes, including an ATM, and a walk-up teller window. In January 2019, the Bank purchased a parcel that adjoins the Center in order to improve ingress and egress to the Bank's main campus, which comprises over 5 acres in downtown Auburn and includes the Bank's main office site, drive-through facility, and the Center. The building improvements on this adjoining parcel, as well as the main office, will be demolished as part of Phase I of the Bank's plan to redevelop its main campus. Phase I of this redevelopment plan will include the construction of a new headquarters building and a parking deck. Construction activities commenced during the second half of 2020 and upon completion of Phase I, the Bank's main office branch and all of its back-office operations will be located in the new headquarters building. Any unused office/retail space in this new building will be available for lease to third parties. The Opelika branch is located in Opelika, Alabama. This branch, built in 1991, is owned by the Bank and has approximately 4,000 square feet of space. This branch offers the full line of the Bank’s services and has drive-through windows and an ATM. This branch offers parking for approximately 36 vehicles. Table of Contents 41 The Bank’s Notasulga branch was opened in August 2001. This branch is located in Notasulga, Alabama, about 15 miles west of Auburn, Alabama. This branch is owned by the Bank and has approximately 1,344 square feet of space. The Bank leased the land for this branch from a third party. In May 2019, the Bank’s land lease renewed for another one year term. This branch offers the full line of the Bank’s services including safe deposit boxes and a drive-through window. This branch offers parking for approximately 11 vehicles, including a handicapped ramp. In November 2002, the Bank opened a loan production office in Phenix City, Alabama, about 35 miles south of Auburn, Alabama. In November 2020, the Bank renewed its lease for another year. In February 2009, the Bank opened a branch located on Bent Creek Road in Auburn, Alabama. This branch is owned by the Bank and has approximately 4,000 square feet of space. This branch offers the full line of the Bank’s services and has drive-through windows and a drive-up ATM. This branch offers parking for approximately 29 vehicles. In December 2011, the Bank opened a branch located on Fob James Drive in Valley, Alabama, about 30 miles northeast of Auburn, Alabama. This branch is owned by the Bank and has approximately 5,000 square feet of space. This branch offers the full line of the Bank’s services and has drive-through windows and a drive-up ATM. This branch offers parking for approximately 35 vehicles. Prior to December 2011, the Bank leased office space for a loan production office in Valley, Alabama. The loan production office was originally opened in September 2004. In February 2015, the Bank relocated its Auburn Kroger branch to a new location within the Corner Village Shopping Center, in Auburn, Alabama. In February 2015, the Bank entered into a new lease agreement for five years with options for two 5-year extensions. In February 2020, the Bank exercised its option to renew the lease for another five years. The Ban k leases approximately 1,500 square feet of space for the Corner Village branch. Prior to relocation, the Bank’s Auburn Kroger branch was located in the Kroger supermarket in the same shopping center. The Auburn Kroger branch was originally opened in August 1988. The Corner Village branch offers the full line of the Bank’s deposit and other services including an ATM, except safe deposit boxes. In September 2015, the Bank relocated its Auburn Wal -Mart Supercenter branch to a new location the Bank purchased in December 2014 at the intersection of S. Donahue Avenue and E. University Drive in Auburn, Alabama. The South Donahue branch, built in 2015, has approximately 3,600 square feet of space. Prior to relocation, the Bank’s Auburn Wal- Mart Supercenter branch was located inside the Wal -Mart shopping center on the south side of Auburn, Alabama. The Auburn Wal-Mart Supercenter branch was originally opened in September 2000. The South Donahue branch offers the full line of the Bank’s services and has drive-through windows and an ATM. This branch offers parking for approximately 28 vehicles. In May 2017, the Bank relocated its Opelika Kroger branch to a new location the Bank purchased in August 2016 near the Tiger Town Retail Shopping Center and the intersection of U.S. Highway 280 and Frederick Road in Opelika, Alabama. The Tiger Town branch, built in 2017, has approximately 5,500 square feet of space. Prior to relocation, the Bank’s Opelika Kroger branch was located inside the Kroger supermarket in the Tiger Town retail center in Opelika, Alabama. The Opelika Kroger branch was originally opened in July 2007. The Tiger Town branch offers the full line of the Bank’s services and has drive-through windows and an ATM. This branch offers parking for approximately 36 vehicles. In September 2018, the Bank opened a loan production office on East Samford Avenue in Auburn, Alabama. The location has approximately 2,500 square feet of space and is leased through 2028 . The loan production office was previously located in the Center on the Bank’s main campus. This location offers parking for approximately 16 vehicles.