What changed in this filing

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Item 1. Financial Statements

2025-11-12 compared with 2025-08-12 · 150 added, 143 removed, 761 unchanged (28% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets

September 30,

(Dollars in thousands, except share data)

21 unchanged sentences

Less treasury stock, at cost -

shares at both June 30, 2025

shares at both September 30, 2025

and December 31, 2024, respectively

1 unchanged sentence

Total liabilities and stockholders’

See accompanying notes to consolidated financial statements

ee accompanying notes to consolidated financial statements

AUBURN NATIONAL

2 unchanged sentences

Consolidated Statements of Earnings

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands, except share and per share data)

24 unchanged sentences

Weighted average shares

Basic and diluted

See accompanying notes to consolidated financial statements

ee accompanying notes to consolidated financial statements

AUBURN NATIONAL

2 unchanged sentences

Consolidated Statements of Comprehensive Income

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

Other comprehensive income (loss), net of tax:

Other comprehensive income, net of tax:

Change in fair value on available-for-sale securities, net of tax

Other comprehensive income (loss), net of tax

Other comprehensive income, net of tax

Comprehensive income

See accompanying notes to consolidated financial statements

ee accompanying notes to consolidated financial statements

AUBURN NATIONAL

5 unchanged sentences

income (loss)

Quarter ended June 30, 2025

Balance, March 31, 2025

Quarter ended September 30, 2025

Balance, June 30, 2025

Other comprehensive income

Cash dividends paid ($

Stock-based compensation

Balance, September 30, 2025

Quarter ended September 30, 2024

Balance, June 30, 2024

Quarter ended June 30, 2024

Balance, March 31, 2024

Other comprehensive loss

Other comprehensive income

Cash dividends paid ($

Sale of treasury stock

Balance, June 30, 2024

Six months ended June 30, 2025

Balance, September 30, 2024

Nine months ended September 30, 2025

Balance, December 31, 2024

1 unchanged sentence

Cash dividends paid ($

Balance, June 30, 2025

Six months ended June 30, 2024

Stock-based compensation

Balance, September 30, 2025

Nine months ended September 30, 2024

Balance, December 31, 2023

1 unchanged sentence

standard ASU 2023-12

Other comprehensive loss

Other comprehensive income

Cash dividends paid ($

Sale of treasury stock

Balance, June 30, 2024

See accompanying notes to consolidated financial statements

Balance, September 30, 2024

ee accompanying notes to consolidated financial statements

AUBURN NATIONAL

2 unchanged sentences

Consolidated Statements of Cash Flows

Six months ended June 30,

Nine months ended September 30,

(Dollars in thousands)

9 unchanged sentences

Increase in cash surrender value of bank-owned life insurance

Net increase in other assets

Stock-based compensation expense

Net decrease (increase) in other assets

Net increase in accrued expenses and other liabilities

5 unchanged sentences

Decrease in FHLB stock

Net cash provided by (used in) investing activities

Net cash provided by investing activities

Cash flows from financing activities:

17 unchanged sentences

Auburn National Bancorporation, Inc.

(the “Company”) provides a full range

of banking services to individuals

(the “Company”) provides a full

range of banking services to individuals

commercial customers in Lee County,

4 unchanged sentences

Basis of Presentation and Use of Estimates

The unaudited consolidated financial statements in this report have

been prepared in accordance with U.S.

The unaudited consolidated financial statements in this report have been

prepared in accordance with U.S.

accepted accounting principles (“GAAP”) for interim financial information.

37 unchanged sentences

transactions through the date of this filing that have occurred

subsequent to June 30, 2025.

subsequent to September 30, 2025.

The Company does not believe there were any material subsequent events during

that would have required further recognition or disclosure in the

unaudited consolidated financial statements included in

period that would have required further recognition or disclosure in

the unaudited consolidated financial statements

included in this report.

Reclassifications

4 unchanged sentences

Accounting Developments

In the first six months of 2025, the Company did not adopt any new accounting guidance.

At June 30, 2025 and December 31, 2024, respectively,

n the first nine months of 2025, the Company did not adopt any new accounting

At September 30, 2025 and December 31, 2024, respectively,

all securities within the scope of ASC 320,

Investments – Debt and

Equity Securities,

Investments –

Debt and Equity Securities,

were classified as available-for-sale.

The fair value and amortized cost for securities available-for-sale

by contractual maturity at June 30, 2025 and December 31, 2024, respectively,

The fair value and amortized cost for securities available-

for-sale by contractual maturity at September 30, 2025

and December 31, 2024, respectively,

are presented below.

1 unchanged sentence

(Dollars in thousands)

June 30, 2025

September 30, 2025

Agency obligations (a)

18 unchanged sentences

million and $

million at June 30, 2025 and December 31, 2024,

million at September 30, 2025 and December 31, 2024,

respectively, were

5 unchanged sentences

carrying amounts of non-marketable equity investments were $

million at June 30, 2025 and December 31, 2024,

million at September 30, 2025 and December 31, 2024,

respectively.

3 unchanged sentences

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at June 30,

The fair values and gross unrealized losses on securities at September

30, 2025 and December 31, 2024, respectively,

by those securities that have been in an unrealized loss position for less than 12

months and 12 months or longer, are

presented below.

segregated by those securities that have been in an unrealized loss position

for less than 12 months and 12 months or

longer, are presented below.

Less than 12 Months

1 unchanged sentence

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Agency obligations

9 unchanged sentences

Because the Company currently does not intend to sell those securities that have an

unrealized loss at June 30, 2025, and it is not more-likely-than-not

that the Company will be required to sell the securities

before recovery of their amortized cost bases, which may be maturity,

the Company has determined that no write-down is

In addition, the Company evaluates whether any portion of the decline in fair value of

securities is the result of

credit deterioration, which would require the recognition of an allowance for credit

Such evaluations consider the

extent to which the amortized cost of the security exceeds its fair value, changes in credit

ratings and any other known

adverse conditions related to the specific security.

The unrealized losses associated with securities at June 30, 2025 are

driven by changes in interest rates and are not due to the credit quality of the securities,

and accordingly, no allowance

credit losses is considered necessary related to securities at June 30, 2025.

These securities will continue to be monitored

as a part of the Company’s ongoing

evaluation of credit quality.

Management evaluates the financial performance of the

issuers on a quarterly basis to determine if it is probable that the issuers can make

all contractual principal and interest

unrealized loss at September 30, 2025, and it is not more-likely-than-not

that the Company will be required to sell the

securities before recovery of their amortized cost bases, which may be

maturity, the Company

has determined that no write-

down is necessary.

In addition, the Company evaluates whether any portion of the decline in fair

value of securities is the

result of credit deterioration, which would require the recognition of

an allowance for credit losses.

Such evaluations

consider the extent to which the amortized cost of the security exceeds

its fair value, changes in credit ratings and any other

known adverse conditions related to the specific security.

The unrealized losses associated with securities at September 30,

2025 are driven by changes in interest rates and are not due to the credit quality

of the securities, and accordingly,

allowance for credit losses is considered necessary related to securities at September

These securities will

continue to be monitored as a part of the Company’s

ongoing evaluation of credit quality.

Management evaluates the

financial performance of the issuers on a quarterly basis to determine if

it is probable that the issuers can make all

contractual principal and interest payments.

Realized Gains and Losses

The Company had no realized gains or losses on sale of securities during the quarters

and six months ended June 30, 2025

The Company had no realized gains or losses on sale of securities during the quarter

and nine months ended September 30,

2025 and 2024, respectively.

1 unchanged sentence

FOR CREDIT LOSSES

September 30,

(Dollars in thousands)

10 unchanged sentences

Loans secured by real estate were approximately 88.5% of the Company’s

total loan portfolio at June 30, 2025.

2025, the Company’s geographic

loan distribution was concentrated primarily in Lee County,

Alabama, and surrounding

The loan portfolio segment is defined as the level at which an entity develops

and documents a systematic method for

total loan portfolio at September 30, 2025.

September 30, 2025, the Company’s

geographic loan distribution was concentrated primarily in Lee County,

surrounding areas.

The loan portfolio segment is defined as the level at which an entity develops and

documents a systematic method for

determining its allowance for credit losses.

5 unchanged sentences

commercial real estate, residential real estate, and consumer installment.

Where appropriate,

the Company’s loan portfolio

appropriate, the Company’s loan portfolio

segments are further disaggregated into classes.

26 unchanged sentences

Generally, the primary

source of repayment is the cash flow from business operations and activities

of the borrower, who owns the

source of repayment is the cash flow from business operations and activities of

the borrower, who owns the

– includes loans for hotels and motels.

Generally, the primary

source of repayment is dependent upon

Generally, the primary source

of repayment is dependent upon

income generated from the hotel/motel securing the loan.

12 unchanged sentences

properties other than hotels/motels and

multi-family properties, and which

are not owner occupied.

multi-family properties, and which are not owner occupied.

Loans in this class include loans for neighborhood

retail centers,

medical and professional offices, single retail stores, industrial buildings,

and warehouses leased to

medical and professional offices, single retail stores, industrial

buildings, and warehouses leased to

local and other businesses.

34 unchanged sentences

The following is a summary of current, accruing past due, and nonaccrual

loans by portfolio segment and class as of June

30, 2025 and December 31, 2024.

loans by portfolio segment and class as of

September 30, 2025 and December 31, 2024.

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Commercial and industrial

48 unchanged sentences

segments and classes by year of origination as

of June 30, 2025 and December 31, 2024.

of September 30, 2025 and December 31, 2024.

Year of Origination

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Commercial and industrial

16 unchanged sentences

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Special mention

59 unchanged sentences

Special mention

Total current period gross charge-offs

otal current period gross charge-offs

Allowance for Credit Losses

1 unchanged sentence

loans with similar risk characteristics, and for

loans that do not share similar risk characteristics with the collectively evaluated

pools, evaluations are performed on an

loans that do not share similar risk characteristics with the collectively

evaluated pools, evaluations are performed on an

individual basis.

1 unchanged sentence

is presented below.

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

6 unchanged sentences

Commercial and

Quarter ended June 30, 2025:

Quarter ended September 30, 2025:

Beginning balance

Net (charge-offs) recoveries

Net recoveries (charge-offs)

Provision for credit losses

Ending balance

Six months ended June 30, 2025:

Nine months ended September 30, 2025:

Beginning balance

2 unchanged sentences

Ending balance

Quarter ended June 30, 2024:

Quarter ended September 30, 2024:

Beginning balance

Net (charge-offs)

Net recoveries (charge-offs)

Provision for credit losses

Ending balance

Six months ended June 30, 2024:

Nine months ended September 30, 2024:

Beginning balance

3 unchanged sentences

The Company had no collateral dependent loans which were individually evaluated

at June 30, 2025.

The following table

presents the amortized cost basis of collateral dependent loans, which were

individually evaluated to determine expected

credit losses at December 31, 2024.

at September 30, 2025.

The following

table presents the amortized cost basis of collateral dependent loans, which were

individually evaluated to determine

expected credit losses at December 31, 2024.

(Dollars in thousands)

10 unchanged sentences

Nonaccrual Loans

June 30, 2025

Commercial real estate

September 30, 2025

Residential real estate

34 unchanged sentences

allowance for the respective periods.

Quarter ended June 30,

Six months ended June 30,

Quarter ended September 30,

Nine months ended September 30,

(Dollars in thousands)

28 unchanged sentences

or indirectly.

Level 3—inputs to the valuation methodology are unobservable and

reflect the Company’s own assumptions about

Level 3—inputs to the valuation methodology are unobservable and reflect

the Company’s own assumptions about

inputs market participants would use in pricing the asset or liability.

8 unchanged sentences

that transfers in and out of any level are expected to be infrequent.

months ended June 30, 2025, there were no

transfers between levels and no changes in valuation techniques for the

Company’s financial assets and liabilities.

For the nine months ended September 30, 2025, there

were no transfers between levels and no changes in valuation techniques for

the Company’s financial assets and liabilities.

Assets and liabilities measured at fair value on a recurring

23 unchanged sentences

The following table presents the balances of the assets and liabilities measured at fair

value on a recurring basis as of June

30, 2025 and December 31, 2024, respectively,

by caption, on the accompanying consolidated balance sheets by ASC 820

valuation hierarchy (as described above).

value on a recurring basis as of

September 30, 2025 and December 31, 2024, respectively,

by caption, on the accompanying consolidated balance sheets by

ASC 820 valuation hierarchy (as described above).

Quoted Prices in

2 unchanged sentences

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Securities available-for-sale:

47 unchanged sentences

Periodically, the

Company will review broker surveys and other market research

to validate significant assumptions used in the model.

Company will review broker surveys and other market research to validate

significant assumptions used in the model.

significant unobservable inputs include mortgage prepayment speeds

6 unchanged sentences

value on a nonrecurring basis as of

June 30, 2025 and December 31, 2024, respectively,

by caption, on the accompanying consolidated balance sheets and by

FASB ASC 820 valuation

hierarchy (as described above):

September 30, 2025 and December 31, 2024, respectively,

by caption, on the accompanying consolidated balance sheets

and by FASB ASC 820

valuation hierarchy (as described above):

Quoted Prices in

2 unchanged sentences

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Loans held for sale

5 unchanged sentences

Quantitative Disclosures for Level 3 Fair Value

At June 30, 2025 and December 31, 2024, the Company had no Level 3

assets measured at fair value on a recurring basis.

For Level 3 assets measured at fair value on a non-recurring basis at June 30, 2025

and December 31, 2024, the significant

unobservable inputs used in the fair value measurements and the range

of such inputs with respect to such assets are

presented below.

At September 30, 2025 and December 31, 2024, the Company had no Level

3 assets measured at fair value on a recurring

For Level 3 assets measured at fair value on a non-recurring basis at September

30, 2025 and December 31, 2024,

the significant unobservable inputs used in the fair value measurements

and the range of such inputs with respect to such

assets are presented below.

(Dollars in thousands)

1 unchanged sentence

Unobservable Input

June 30, 2025:

September 30, 2025:

Mortgage servicing rights, net

47 unchanged sentences

and placement in the fair value hierarchy of the Company’s

instruments at June 30, 2025 and December 31, 2024 are presented below.

This table excludes financial instruments for

which the carrying amount approximates fair value.

instruments at September 30, 2025

and December 31, 2024 are presented

This table excludes financial instruments

for which the carrying amount approximates fair value.

Financial assets for which fair value approximates carrying value

included cash and cash equivalents.

Financial liabilities for which fair value approximates carrying value included

Financial liabilities for which fair value approximates carrying value

noninterest-bearing demand deposits, interest-bearing demand deposits, and

10 unchanged sentences

(Dollars in thousands)

June 30, 2025:

September 30, 2025:

Financial Assets:

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements