Auburn National Bancorporation (AUBN) is a single-bank holding company (AuburnBank, Auburn AL) with $1.02B in total assets at December 31, 2025. Under a liquidation lens, recovery to equity is positive but materially below book value once standard haircuts are applied to the asset mix. Cash and cash equivalents (including fed funds sold and interest-bearing bank deposits) total approximately $147.8M (100% recovery). The AFS securities portfolio carries $233.3M fair value against $259.2M amortized cost, reflecting $25.9M in gross unrealized losses concentrated in positions held 12+ months; under a forced-sale scenario, fair value is the ceiling and the mark is already embedded. Loans net of allowance are $558.2M at carrying value versus a Level 3 exit-price fair value of $542.4M, a $15.8M discount (2.8%), which is the liquidation haircut the market applies to this book. PP&E at $45.6M net carries meaningful real estate (land $12.8M, buildings $38.0M gross), with typical 50-70% recovery suggesting $23-32M realization against $45.6M book. Intangibles (MSRs at $0.8M carrying, finite-lived core deposit and other intangibles totaling approximately $0.4M remaining) receive zero recovery. Bank-owned life insurance ($17.9M) approximates cash surrender value and is treated near par. On the liability side, deposits of $922.9M stay at face value. Time deposits ($176.8M carrying vs. $176.1M fair value) are essentially at par. Total liabilities of $926.7M at face. Reported GAAP equity is $92.1M; MFFAIS CLV/LLV/OLV all cited at $147.8M, which reflects only the cash and liquid equivalent line and not a full balance-sheet liquidation analysis. A more complete liquidation estimate would be: cash/equivalents $147.8M + AFS securities at fair value $233.3M + loans at exit-price fair value $542.4M + PP&E at ~55% of net $25M + BOLI $17.9M + other assets (partial recovery) ~$5M, less total liabilities at face $926.7M, yielding rough liquidation equity in the range of $45-50M, well below GAAP book of $92.1M. The dominant drag is the asymmetry between haircut assets (particularly the $15.8M loan discount and PP&E write-down) and full-face liabilities. AOCI of -$19.4M (unrealized AFS losses net of tax) is already reflected in GAAP book. Capital ratios remain strong: CET1 16.06%, total risk-based 17.14%, Tier 1 leverage 10.71%, all well above well-capitalized thresholds. No long-term debt. No pension obligation disclosed as a XBRL-tagged balance-sheet liability. From the prior filing (10-Q period ending September 30, 2025), total assets were $1.01B and equity $89.6M; the YE 2025 filing shows modest asset growth (+$7.6M) and equity improvement (+$2.4M) primarily driven by OCI recovery ($10.2M unrealized gain on AFS securities in 2025 net of tax). The AFS unrealized loss position improved materially but remains elevated at -$25.9M gross. Filing discusses pension expense ($300) in MD&A but the XBRL tag PensionExpense reports a de minimis $300 (likely dollars, not thousands), consistent with no material pension liability on the balance sheet.
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