Page 1

AUBURN NATIONAL BANCORPORATION , INC . For additional information , contact : Robert W. Dumas Chairman , President and CEO ( 334 ) 821-9200 Press Release - April 27 , 2021 Auburn National Bancorporation , Inc. Reports First Quarter Net Earnings First Quarter 2021 Results : Net earnings of $ 2.0 million , compared to $ 1.8 million for Q1 2020 • Earnings per share of $ 0.56 per share , compared to $ 0.50 per share for Q1 2020 Exhibit 99.1 • Mortgage lending income of $ 0.5 million more than doubled , compared to $ 0.2 million in Q1 2020 Funded 204 loans in 2021 totaling $ 18.7 million under the Paycheck Protection Program ( “ PPP ” ) Collected $ 0.9 million in gross PPP loan fees in Q1 2021 Allowance for loan losses to total loans of 1.23 % or 1.31 % excluding PPP loans AUBURN , Alabama – Auburn National Bancorporation , Inc. ( Nasdaq : AUBN ) reported net earnings of $ 2.0 million , or $ 0.56 per share , for the first quarter of 2021 , compared to $ 1.8 million , or $ 0.50 per share , for the first quarter of 2020 . " The Company enjoyed strong mortgage revenue and excellent credit quality in the first quarter of 2021. Low interest rates continue to be a challenge , but we are optimistic that the economy will improve in light of the growing number COVID - 19 vaccinations and the easing of pandemic - related restrictions in our markets , " said Robert W. Dumas , Chairman , President , and CEO . " We continue to work with our small businesses who are affected by the pandemic to help them gain access to PPP funds and also to complete the PPP loan forgiveness process . In the first quarter of 2021 , we funded $ 18.7 million Paycheck Protection Program loans for our customers , which helped support approximately 2,600 employees in our markets , " said Mr. Dumas . Net interest income ( tax - equivalent ) was $ 6.1 million for the first quarter of 2021 , a 4 % decrease compared to $ 6.3 million for the first quarter of 2020. This decrease was primarily due to net interest margin compression resulting from the Federal Reserve's interest rate reductions in response to COVID - 19 . Net interest margin ( tax - equivalent ) decreased to 2.66 % in the first quarter of 2021 , compared to 3.23 % for the first quarter of 2020 , primarily due to the lower interest rate environment and changes in our asset mix resulting from the significant increase in customer deposits . The Company recorded no provision for loan losses during the first quarter of 2021 , compared to a provision for loan losses of $ 0.4 million during the first quarter of 2020. At March 31 , 2021 , the Company's allowance for loan losses was $ 5.7 million , or 1.23 % of total loans , compared to $ 5.6 million , or 1.22 % of total loans , at December 31 , 2020 , and $ 4.9 million , or 1.10 % of total loans , at March 31 , 2020. Excluding PPP loans , the Company's allowance for loan losses was 1.31 % of total loans at March 31 , 2021 .