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 a loan production office in Phenix City, Alabama. The Bank owns its main campus in downtown Auburn, Alabama, which comprises over 4 acres and includes the newly constructed AuburnBank Center, which was completed in May 2022 and held its grand opening in June 2022. The AuburnBank Center has approximately 90,000 square feet of space. The AuburnBank Center includes the Bank’s main office, Auburn loan production office, and all of its back-office operations. The 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. The Bank has approximately 46,000 square feet of office space and approximately 5,000 square feet of retail space in the new AuburnBank Center building available for lease to third party tenants. In February 2022, the Company entered into an agreement to sell a parcel of approximately 0.85 acres to a hotel developer. As part of the agreement, the Bank negotiated a long-term lease with the hotel developer for 100 to 150 parking spaces in the Bank’s parking deck. In October 2022, the Company closed the sale at the agreed upon price of $4.3 million, and recognized a $3.2 million gain. 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. 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 2022, 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 and 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 2022, 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 had operated a loan production office in Valley, which 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 Bank 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 since August 1988. The current 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 in south Auburn, which had been opened in 2004 to a new building, which the Bank built in 2015 at the intersection of S. Donahue Avenue and E. University Drive in Auburn, Alabama. The South Donahue branch has approximately 3,600 square feet of space. 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. Table of Contents 47 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 addition to the eight ATMs at various branch locations, mentioned above, the Bank also has five ATMs located at various locations within our primary service area. 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. This loan production office was relocated to the newly developed AuburnBank Center in June 2022. The Company has entered into a sublease agreement with a tenant for three years with an option to renew for three additional years.