AUBURN NATIONAL BANCORPORATION, INC

In addition to the other information set forth in this report, you should carefully consider

the factors discussed in Part I,

in the Company’s Annual

which could materially affect our business, financial condition

or future results. The risks described in our annual report on

Form 10-K are not the only the risks facing our Company.

The persistence of inflation above the Federal Reserve’s

long

term targets, and the maintenance of or further increases in,

tightened Federal Reserve monetary policy by increased target

interest rates and reductions in the Federal Reserve’s

securities portfolio, have and may continue to affect the levels

of

interest rates, mortgage originations and income, the market values of

our securities portfolio and loans and have resulted in

unrealized securities losses that have adversely affected our stockholders’

equity.

Although inflation has remained above

the 2% rate, during the last year the Federal Reserve has reduced its target

federal funds range from 5.25% to 5.50% to

3.75% to 4.00%, and on October 29, 2025 announced that it would end the

roll-off of maturing securities it held beginning

December 1, 2025 as the Federal Reserve sought to meet its dual mandate of

maximum employment and 2% inflation over

the longer run.

These actions, and the changes from tighter to more accommodative monetary policy

have affected and are

expected to continue to affect our deposit costs and mixes,

and consumer savings and payment behaviors.

These may also

affect our borrowers’ operating costs, expected returns and

cash flows available to service our loans.

Additional risks and

uncertainties not currently known to us or that we currently deem to be

immaterial also may materially adversely affect our

b

usiness, financial condition, and/or operating results in the future.