Audited Financial Statements AUBURN NATIONAL BANCORPORATION, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity and Comprehensive Income page 37 Accumulated Additional other Common Stock paid-in Retained  comprehensive Treasury (Dollars in thousands, except share data) Shares Amount capital earnings income (loss) stock Total Balance, December 31, 2008 3,957,135 $ 39 3,749 59,283 603 (6,546) $ 57,128 Comprehensive income: Net earnings — — — 2,404 — — 2,404 Other comprehensive loss due to change in other-than-temporary impairment losses related to factors other than credit on available-for- sale, net — — — — (162) — (162) Other comprehensive loss due to change in all other unrealized gains (losses) on securities available-for-sale, net — — — — (330) — (330) Total comprehensive income 2,404 (492) 1,912 Cash dividends paid ($0.76 per share) — — — (2,770) — — (2,770) Stock repurchases (3,955 shares) — (90) (90) Sale of treasury stock (125 shares) — — 2 — 1 3 Balance, December 31, 2009 3,957,135 $ 39 3,751 58,917 111 (6,635) $ 56,183 Comprehensive income: Net earnings — — — 5,346 — — 5,346 Other comprehensive loss due to change in other-than-temporary impairment losses related to factors other than credit on available-for- sale, net — — — — (133) — (133) Other comprehensive loss due to change in all other unrealized gains (losses) on securities available-for-sale, net — — — — (2,179) — (2,179) Total comprehensive income 5,346 (2,312) 3,034 Cash dividends paid ($0.78 per share) — — — (2,842) — — (2,842) Stock repurchases (484 shares) — (9) (9) Sale of treasury stock (85 shares) — — 1 — 1 2 Balance, December 31, 2010 3,957,135 $ 39 3,752 61,421 (2,201) (6,643) $ 56,368 Comprehensive income: Net earnings — — — 5,538  — — 5,538 Other comprehensive loss due to change in other-than-temporary impairment losses related to factors other than credit on available-for- sale, net — — — — (82)  — (82) Other comprehensive income due to change in all other unrealized gains (losses) on securities available-for-sale, net — — — — 6,505  — 6,505 Total comprehensive income 5,538  6,423  11,961 Cash dividends paid ($0.80 per share) — — — (2,914) — — (2,914) Sale of treasury stock (20 shares) 1 — 1 Balance, December 31, 2011 3,957,135 $ 39 3,753 64,045 4,222 (6,643) $ 65,416 See accompanying notes to consolidated financial statements