Auburn National Bancorporation, Inc. (AUBN) | Investment Case

1. Company Snapshot

1.a. Company Description

Auburn National Bancorporation, Inc.operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama.The company's deposit products include checking, savings, and transaction deposit accounts, as well as certificates of deposit.

It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services.In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic services; and safe deposit boxes.It operates through seven full-service branches in Auburn, Opelika, Notasulga, and Valley, Alabama; as well as loan production offices in Auburn and Phenix City, Alabama.

Auburn National Bancorporation, Inc.was founded in 1907 and is headquartered in Auburn, Alabama.

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1.b. Last Insights on AUBN

Auburn National Bancorporation's recent performance was driven by weak earnings and revenue growth, along with a lack of significant business developments. Despite declaring a quarterly dividend of $0.27 per share, the company's Q4 2024 earnings release showed a 26.9% year-over-year decline in net income to $9.6 million. Additionally, Auburn National Bancorporation's loan growth has been sluggish, with a 2.4% year-over-year increase in total loans. The company's return on average assets (ROAA) also declined to 0.95% from 1.06% in the prior year.

1.c. Company Highlights

Last Price	24.84
Change Percentage	3.52%
Open	24.8
Previous Close	24.0
Market Cap ( Millions)	87
Volume	790
Year High	29
Year Low	19
M A 50	25.88
M A 200	23.72

FCF Yield	10.15%
Dividend Yield	4.35%
ROE	8.62%
Debt / Equity	0.00%
Net Debt / EBIDTA	-1164.07%
Price To Book	1.01
Price Earnings Ratio	12.14
Price To FCF	9.85
Price To sales	2.13
EV / EBITDA	-3.78

2. Transcript Summary

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3. NewsRoom

Auburn National Bancorporation, Inc. Declares Quarterly Dividend

Nov -12

Source: globenewswire.com

Auburn National Bancorporation, Inc. Reports Third Quarter Net Earnings

Oct -23

Source: globenewswire.com

Auburn National Bancorporation, Inc. Elects New Director

Oct -06

Source: globenewswire.com

Auburn National Bancorp: An Interesting Local Bank In Alabama

Sep -08

Source: seekingalpha.com

Auburn National Bancorporation, Inc. Declares Quarterly Dividend

Aug -12

Source: globenewswire.com

Auburn National's Q2 Shows Growth

Jul -22

Source: fool.com

Auburn National Bancorporation, Inc. Reports Second Quarter Net Earnings

Jul -22

Source: globenewswire.com

Auburn National Bancorporation, Inc. Declares Quarterly Dividend

May -13

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

Auburn National Bancorporation's growth is driven by increasing demand for commercial and consumer banking services in Alabama, supported by a strong economy and growing population. The bank's diversified revenue streams, including mortgage lending and trust services, also contribute to its growth prospects.

7. Detailed Products

Commercial Loans

Auburn National Bancorporation, Inc. offers commercial loans to businesses of all sizes, providing financing for various business needs such as expansion, equipment purchases, and working capital.

Mortgage Loans

The company provides mortgage loans to individuals and families, offering a range of options for purchasing or refinancing a home.

Consumer Loans

Auburn National Bancorporation, Inc. offers consumer loans for personal expenses, debt consolidation, and other financial needs.

Deposit Accounts

The company provides a range of deposit accounts, including checking, savings, and certificates of deposit (CDs), to help individuals and businesses manage their finances.

Treasury Management Services

Auburn National Bancorporation, Inc. offers treasury management services to help businesses manage their cash flow, reduce fraud risk, and improve financial efficiency.

Online Banking and Mobile Banking

The company provides online banking and mobile banking services, allowing customers to manage their accounts, pay bills, and transfer funds from anywhere.

8. Auburn National Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Auburn National Bancorporation, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for Auburn National Bancorporation, Inc. is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Auburn National Bancorporation, Inc. is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants for Auburn National Bancorporation, Inc. is high due to the relatively low barriers to entry in the financial services industry and the increasing trend of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Auburn National Bancorporation, Inc. is high due to the presence of multiple competitors in the financial services industry and the increasing competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.03%
Debt Cost	6.55%
Equity Weight	97.97%
Equity Cost	6.55%
WACC	6.55%
Leverage	2.07%

11. Quality Control: Auburn National Bancorporation, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Auburn National Bancorporation

A-Score: 6.5/10

Value: 7.3

Growth: 3.8

Quality: 6.8

Yield: 8.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Provident Financial Holdings

A-Score: 6.3/10

Value: 5.3

Growth: 4.3

Quality: 4.3

Yield: 7.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Pacific Premier Bancorp

A-Score: 5.9/10

Value: 5.5

Growth: 3.7

Quality: 7.4

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

FNCB

A-Score: 5.1/10

Value: 7.5

Growth: 4.4

Quality: 6.8

Yield: 4.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Heartland Financial USA

A-Score: 4.8/10

Value: 4.1

Growth: 2.2

Quality: 7.8

Yield: 3.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Independent Bank Group

A-Score: 4.4/10

Value: 3.6

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.95%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.55%

Auburn National Bancorporation, Inc. - US0504731078

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AUBN

1.c. Company Highlights

Weak Momentum

Lower Growth

Average Yield

Higher Yield

Medium Volatility

Stable Momentum

Fairly Valued

Average Growth

Cheaper

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Banking and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Commercial Loans

Mortgage Loans

Consumer Loans

Deposit Accounts

Treasury Management Services

Online Banking and Mobile Banking

8. Auburn National Bancorporation, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Auburn National Bancorporation, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.84$

Current Price

24.84$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA