Auburn National Bancorporation, Inc. (AUBN): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind this East Alabama staple, and honestly, it's a textbook community bank model getting a digital tune-up. As of late 2025, Auburn National Bancorporation, Inc. is balancing its 118-year local reputation with a solid footing-think total assets around $1.0 billion and an enviable asset quality at just 0.01% nonperforming assets in Q3 2025. That 3.30% Net Interest Margin tells a story of solid lending, but where are the real pressures on their cost structure? Dive below to see the full nine blocks of their Business Model Canvas, mapping out exactly how they turn local trust into tangible returns.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Auburn National Bancorporation, Inc. (AUBN) relies on to operate and serve its East Alabama market. These aren't just vendor contracts; they are foundational elements of its regulatory standing, liquidity management, and modern service delivery. Honestly, for a bank with total assets hitting $1.01 billion as of September 30, 2025, these partnerships are non-negotiable.

Regulatory and Liquidity Pillars

The first set of partners keeps the lights on and the doors open legally. Auburn National Bancorporation, Inc. operates under the direct oversight of key federal bodies. The Bank's primary regulators are the Federal Reserve and the Alabama Superintendent of Banks. Remember, the Bank joined the Federal Reserve System back in April 1995, which is a long-term commitment to that regulatory framework. The FDIC remains a critical partner, especially concerning deposit insurance and merger guidelines, even if not the primary day-to-day regulator for the holding company.

For managing liquidity-that crucial ability to meet depositor demands-the relationship with the Federal Home Loan Bank of Atlanta (FHLB-Atlanta) is key. AuburnBank has been a member of FHLB-Atlanta since 1991. This access to low-cost funding is vital, especially when you consider the bank's strong capital position, with a CET1 ratio of 15.51% at the end of the third quarter of 2025. FHLB-Atlanta provides financing and community development grants to its members.

Technology and Customer Experience Alliances

To keep pace with larger regional players, Auburn National Bancorporation, Inc. has integrated specific third-party services. The partnership with Greenlight for Banks is a clear move to capture the next generation of customers. AuburnBank offers its customers a complimentary subscription to the Greenlight family finance mobile app and debit card for kids and teens. Specifically, eligible AuburnBank customers receive the Greenlight SELECT plan at no charge, provided they link their AuburnBank account as the funding source. This offer is set to run until October 8, 2026, subject to change. This kind of value-add helps support the bank's core business, which generated $5.6 million in net earnings for the first nine months of 2025.

The final category involves the essential technology infrastructure. While I don't have the specific vendor names for the core banking system as of late 2025, we know the bank is actively investing in technology to improve service, such as implementing a new deposit account opening system and developing a new mobile/online platform. These systems are the backbone supporting the bank's 7 offices and 8 ATM locations across East Alabama. The performance of these technology partners directly impacts the efficiency that contributed to a Net Interest Margin of 3.26% in Q3 2025.

Here's a snapshot mapping these key external relationships to the scale of Auburn National Bancorporation, Inc. as of September 30, 2025:

You'll want to track any changes in the FHLB advance rates, as that directly impacts the cost of funds for a bank this size. Finance: draft the 13-week cash view by Friday.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Key Activities

You're looking at the core engine of Auburn National Bancorporation, Inc. (AUBN), the day-to-day work that turns assets into earnings. For a community-focused bank like AuburnBank, the subsidiary, this is all about managing money flow and risk in East Alabama.

Commercial and consumer loan origination and servicing is central to the operation. This involves putting capital to work in the local economy. As of September 30, 2025, the net loan portfolio stood at $557.9 million. This portfolio is heavily weighted toward real estate, which is typical for a community bank in this region. You can see the breakdown of where that money is lent:

Servicing these loans is key to maintaining asset quality, which looks strong; nonperforming loans were just $104,000, or 0.02% of total loans, for the first nine months of 2025. That's defintely a sign of prudent underwriting.

Deposit gathering and liability management is the other side of the balance sheet coin. You need stable, low-cost funding to support the loan book. Total deposits for Auburn National Bancorporation, Inc. were $917.3 million as of September 30, 2025. Managing the composition matters, especially with uninsured deposits at $369.1 million, representing 40% of the total deposit base. The bank's ability to generate core funding directly impacts its profitability, which is reflected in the Net Interest Income (tax-equivalent) for the third quarter of 2025, coming in at $7.6 million.

The bank must also focus on managing the investment securities portfolio. This portfolio helps manage liquidity and supplement interest income. The total assets supporting this entire operation, including loans and securities, were approximately $1.0 billion as of the end of the third quarter of 2025. The net interest margin, which shows how effectively the assets are priced against liabilities, improved to 3.30% in Q3 2025.

Finally, the bank is actively engaged in enhancing digital banking experience and online account opening. This is about staying competitive and meeting modern customer expectations, even in a community setting. Leadership specifically highlighted the successful rollout of online account opening for certain deposit products in Q3 2025. This activity supports the deposit gathering function by making it easier for new customers to start a relationship. The bank uses its 7 offices and 8 ATM locations as physical anchors while pushing digital convenience.

• Originate and service commercial and consumer loans totaling $557.9 million (net).
• Gather and manage total liabilities (deposits) of $917.3 million.
• Manage investment portfolio within total assets of about $1.0 billion.
• Implement digital features like online account opening for deposit products.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Key Resources

When we look at Auburn National Bancorporation, Inc.'s key resources as of late 2025, it really boils down to a solid, localized foundation. You've got the tangible stuff, like the balance sheet strength, and the intangible assets, like that deep-rooted community trust. It's not a massive operation, but it's clearly well-capitalized for its size in East Alabama.

The capital position is definitely a highlight. It shows they can absorb unexpected hits, which is always what you want to see in a regional bank. Their tangible common equity ratio stood strong at 8.86% as of Q3 2025, up from 8.36% in the prior quarter. That's a good sign of retained earnings working for the equity base.

Here's a quick look at the core asset base, specifically the loan portfolio, which is the engine of a bank like this. As of September 30, 2025, the net loan portfolio totaled $557.9 million. That's down slightly from the end of 2024, but the composition tells a story about where they see opportunity and risk.

You can see the concentration in commercial real estate, which is typical for a community bank serving a growing area like East Alabama. Here's the breakdown of that $557.9 million book:

Beyond the numbers on the balance sheet, the physical footprint and history are critical intangible resources. Auburn National Bancorporation, Inc. has a 118-year history, which translates directly into a strong local brand reputation in East Alabama. People know the name, and that trust doesn't get built overnight.

That reputation is supported by a physical network designed for local service. They operate a network of 7 full-service branches and 8 ATM locations throughout the communities they serve. This physical presence helps them maintain those deep local relationships, even as they roll out digital enhancements like online account opening for certain deposit products.

For you, the analyst, the regulatory capital strength backs up the tangible equity number. The bank's regulatory capital ratios were well above the minimums required to be deemed 'well capitalized' at the end of Q3 2025. Check out these figures:

• - CET1 ratio: 15.51%.
• - Total Risk-Based capital ratio: 16.49%.
• - Tier 1 Leverage ratio: 10.72%.

Also, remember their total assets hovered around $1.0 billion as of September 30, 2025, with stockholders' equity at $89.6 million. That equity base, combined with the strong TCE ratio, is the bedrock for their operations. Finance: review the impact of the negative provision for credit losses of $(152,000) on the Q4 2025 TCE projection by next Tuesday.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Value Propositions

You're looking at what makes Auburn National Bancorporation, Inc. stand out in its market. The core value proposition is definitely its deep, local connection. This isn't a bank run by algorithms in a distant city; it's about deeply rooted community banking focus and local decision-making, serving individuals, businesses, and municipalities across central and eastern Alabama. That local expertise helps them craft banking solutions that truly fit the area's unique needs.

One of the most compelling value points right now is the bank's exceptional credit health. Honestly, this level of asset quality gives you a lot of confidence in their management. Auburn National Bancorporation offers strong asset quality with nonperforming assets at 0.01% of total assets (Q3 2025). That figure, $0.1 million in nonperforming assets against total assets of about $1.01 billion as of September 30, 2025, speaks volumes about their underwriting discipline. Here's a quick look at how that credit quality stacks up against other key balance sheet metrics from that period:

The bank backs this stability with a full range of commercial and retail banking products. They aren't just a niche player; they aim to be the primary financial institution for their community members and enterprises. For retail customers, this means the basics are covered, plus more sophisticated offerings.

• Checking and savings accounts
• Consumer and mortgage lending
• Wealth management services

On the commercial side, they focus on supporting local enterprise growth with tailored services. This includes things like business checking, equipment loans, and cash management solutions. For example, their loan portfolio mix as of Q3 2025 showed Commercial Real Estate at 54% and Commercial/Industrial at 10% of their $557.9 million loan book.

Finally, Auburn National Bancorporation is balancing that traditional community feel with modern expectations through a commitment to digital convenience while maintaining personal service. You see this in action with the recent rollout of online account opening for certain deposit products, which the President and CEO noted was an important step in enhancing access. They are actively working to make banking easier without sacrificing the relationship aspect that defines their brand. That blend of high-tech access and high-touch service is a key differentiator for you as a customer or investor.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Customer Relationships

You're focused on maintaining deep local ties while rolling out new digital tools; that's the core of Auburn National Bancorporation, Inc.'s customer relationship strategy as of late 2025.

The foundation remains the personal, relationship-based service delivered through the branch staff. AuburnBank operates 7 offices across its primary service area in East Alabama, including Lee County, which is a key differentiator since it remains the only bank headquartered in Auburn, Alabama. This physical presence supports the community-oriented approach that has defined the bank since its founding in 1907.

For business clients, the relationship model is formalized through dedicated commercial lending officers. These officers focus on offering commercial and consumer loan and deposit services specifically to individuals and small to middle market businesses in the East Alabama region. This dedicated structure helps the bank partner with local businesses by focusing on understanding their goals and needs.

To balance the high-touch service, Auburn National Bancorporation, Inc. is actively enhancing automated self-service via online and mobile banking platforms. Management reported the successful rollout of online account opening for certain deposit products during the third quarter of 2025, aiming to improve customer convenience. The bank is also planning future investment in a new mobile and online banking platform to dramatically improve the self-service experience.

Here's a quick look at the scale of the customer base as of September 30, 2025, which these relationships support:

The bank continues to invest in technology to meet the service level customers expect, but the emphasis on personal connection remains central to its value proposition. If onboarding for new digital services takes longer than expected, churn risk rises, defintely.

• Personal service through 7 physical offices.
• Focus on small and middle market businesses.
• Rollout of online account opening for deposits.
• Plans for new mobile and online banking platform development.

Finance: draft 13-week cash view by Friday.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Channels

You're looking at how Auburn National Bancorporation, Inc., through its subsidiary AuburnBank, gets its value proposition-community-focused banking-out to its customers as of late 2025. It's a mix of the traditional and the digital, which is typical for a community bank of its size, with total assets hovering around $1.01 billion as of September 30, 2025.

The physical network remains central, anchoring the bank to its East Alabama footprint. You see this in the dedicated full-service branches and the specialized loan production office.

• - Physical branch network across Auburn, Opelika, Valley, and Notasulga.
• - Loan production office in Phenix City, Alabama.

As of the May 2025 update, AuburnBank operates seven full-service branches. These physical points of presence are crucial for relationship banking in their core markets. The locations specified in the outline are all covered by this network, which serves communities including Lee County.

The specialized office in Phenix City is a key channel for loan origination, separate from the full-service deposit-taking branches. This office is explicitly noted as a Loan Production Office (LPO).

The Phenix City LPO channel operates with specific hours, focusing on generating loan volume rather than handling day-to-day teller transactions. For instance, as of mid-2025 data, its hours were M-F 8:00 AM-5:00 PM (EST, by appointment only).

Digital channels are clearly an area of focus for Auburn National Bancorporation, Inc., supporting convenience for their customer base, which holds total deposits of $917.3 million as of Q3 2025.

• - Online banking and bill payment services.
• - Successful rollout of online account opening for certain deposit products in Q3 2025.
• - Services include Mobile Banking and eStatements.

The ATM network provides essential 24/7 access, complementing the branch structure. The bank maintains a network of ATMs, often co-located at their branch sites.

The ATM network, which includes 8 ATM locations across their service area, supports the use of their Visa Check card, giving customers access beyond the bank's immediate physical footprint through the Plus network.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Customer Segments

Auburn National Bancorporation, Inc. operates through its subsidiary, AuburnBank, focusing its commercial and retail banking services primarily within East Alabama, which explicitly includes Lee County and the areas surrounding it.

The scale of the operation as of September 30, 2025, is anchored by total assets of $1.0 billion. The physical footprint supporting these customer segments consists of 7 full-service branches located in Auburn, Opelika, Valley, and Notasulga, Alabama, along with one loan production office in Phenix City, Alabama, and 8 ATM locations.

The primary customer base includes:

• - Individuals and consumers in East Alabama.
• - Small and middle market businesses in Lee County and surrounding areas.
• - Residential real estate borrowers in the primary service area.

For individuals and consumers, the total deposits stood at $910.5 million as of March 31, 2025, showing growth from $895.8 million at December 31, 2024. This growth in Q1 2025 was mainly driven by increases in both noninterest and interest-bearing demand deposit account balances. Lee County itself has a population of just under 200,000 people, where 19 banks are active, positioning AuburnBank as a leader in that specific deposit market.

For small and middle market businesses, the loan portfolio net of unearned income was $560.7 million at March 31, 2025. The loan book shows specific concentrations in commercial real estate sectors, which are key to serving the business segment in the region.

The residential real estate borrowers segment is a significant component of the loan portfolio, as evidenced by the concentration levels exceeding 25% of the Bank's total risk-based capital at December 31, 2024:

The allowance for credit losses for the entire loan portfolio was $7.0 million, or 1.24% of total loans, as of June 30, 2025. The loan portfolio experienced payoffs in the commercial and industrial and commercial real estate segments that outpaced the growth in construction and land development loans as of the first quarter of 2025.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Cost Structure

You're looking at the cost side of Auburn National Bancorporation, Inc.'s operations as of mid-to-late 2025. The primary cost drivers for a bank like Auburn National Bancorporation, Inc. revolve around funding its assets and running its physical and digital infrastructure.

The cost of funds is dominated by interest expense on customer deposits and wholesale borrowings. For the second quarter of 2025, the bank reported Net Interest Income (tax-equivalent) of $7.4 million, up from $7.1 million in the first quarter of 2025. The improvement in Net Interest Margin to 3.27% in Q2 2025, up 7 basis points from Q1 2025, was primarily attributed to a decrease in the cost of interest-bearing deposits. It's important to note that as of the Q2 2025 report, Auburn National Bancorporation, Inc. had no FHLB advances or wholesale funding outstanding, suggesting interest expense is almost entirely driven by customer deposits.

A key challenge for Auburn National Bancorporation, Inc. is managing high non-interest/overhead expenses relative to net interest income. For the second quarter of 2025, Noninterest expense decreased 3% compared to the first quarter of 2025. Looking at prior periods, Noninterest expense was $5.5 million in both the fourth and third quarters of 2024. For the full year 2024, total Noninterest expense was $22.2 million. This figure compares to the full year 2024 Net Interest Income (tax-equivalent) of $27.2 million.

The operational costs for the physical footprint include salaries, benefits, and occupancy costs for its branches. Auburn National Bancorporation, Inc. operates through 7 offices throughout the communities it serves. The cost savings realized in Q4 2024 noninterest expense compared to Q4 2023 were primarily related to decreases in these specific categories:

• Salaries and benefits expense.
• Net occupancy and equipment expense.
• Professional fees expense.

Regarding technology and software investment for digital platform upgrades, specific figures aren't broken out, but these costs fall under the general Noninterest expense. The bank closed its Corner Village branch at the end of 2024, which management stated should provide cost savings starting in 2025. This strategic move suggests a focus on efficiency, likely balancing physical footprint costs against necessary investments in the digital platform.

Here is a snapshot of relevant expense and income metrics for context:

Finance: draft 13-week cash view by Friday.

Auburn National Bancorporation, Inc. (AUBN) - Canvas Business Model: Revenue Streams

You're looking at how Auburn National Bancorporation, Inc. (AUBN) brings in the money as of late 2025. The core driver, as you'd expect for a community bank, remains the spread between what they earn on assets and what they pay for liabilities. That Net Interest Income (NII) is really doing the heavy lifting for the bottom line.

For the third quarter of 2025, the Net Interest Margin (NIM) landed right where the prompt suggested, at a solid 3.30%. That margin improvement, up from 3.05% in Q3 2024, is key to their profitability story. This NII, which comes from their loan portfolio and securities, hit $7.6 million in Q3 2025 alone. Looking at the year-to-date picture for the first nine months of 2025, the total tax-equivalent NII reached $22.0 million, marking an 11 percent increase year-over-year.

Here's a quick look at how those two main revenue buckets stacked up through Q3 2025:

Noninterest income provides the secondary layer of revenue, though it's smaller. For the first nine months of 2025, this category totaled $2.4 million. You see fluctuations here based on market activity and service usage. For instance, the year-to-date figure was down slightly from $2.6 million in 2024.

The components making up that noninterest income tell a story about current banking trends. Specifically, the decreases were mainly tied to lower mortgage lending income and other miscellaneous noninterest sources. To be fair, service charges on deposits and accounts remained relatively flat year-to-date. This shows you that while the core lending spread is strong, fee-based income tied to transactional activity or mortgage origination is softer right now.

The key revenue streams for Auburn National Bancorporation, Inc. are:

• Net Interest Income (NII) from loans and securities.
• Noninterest income from service charges and fees.
• Income derived from mortgage lending activities.
• Other miscellaneous noninterest income sources.

Ultimately, all these streams flow into the final profitability metric. For the first nine months of 2025, Auburn National Bancorporation, Inc. reported net earnings of $5.6 million, which is a 16 percent increase compared to the same period in 2024. That's a defintely positive sign for the business model's overall effectiveness.