Audited Financial Statements AUBURN NATIONAL BANCORPORATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets December 31 (Dollars in thousands, except share data) 2011 2010 Assets: Cash and due from banks $ 12,395 $ 11,432 Federal funds sold 41,840 7,500 Interest bearing bank deposits 1,193 2,492 Cash and cash equivalents 55,428 21,424 Securities available-for-sale  299,582 315,220 Loans held for sale 3,346 4,281 Loans, net of unearned income 370,263 374,215 Allowance for loan losses (6,919) (7,676) Loans, net 363,344 366,539 Premises and equipment, net 9,345 8,105 Bank-owned life insurance 16,631 16,171 Other real estate owned 7,898 8,125 Other assets 20,644 23,964 Total assets $ 776,218 $ 763,829 Liabilities: Deposits: Noninterest-bearing  $ 106,276 $ 87,660 Interest-bearing 513,276 519,467 Total deposits 619,552 607,127 Federal funds purchased and securities sold under agreements to repurchase 2,805 2,685 Long-term debt 85,313 93,331 Accrued expenses and other liabilities 3,132 4,318 Total liabilities 710,802 707,461 Stockholders' equity: Preferred stock of $.01 par value; authorized 200,000 shares;  issued shares - none — — Common stock of $.01 par value; authorized 8,500,000 shares; issued 3,957,135 shares 39 39 Additional paid-in capital 3,753 3,752 Retained earnings 64,045 61,421 Accumulated other comprehensive income (loss), net 4,222 (2,201) Less treasury stock, at cost - 314,397 shares and 314,417 shares  at December 31, 2011 and 2010, respectively (6,643) (6,643) Total stockholders’ equity 65,416 56,368 Total liabilities and stockholders’ equity $ 776,218 $ 763,829 See accompanying notes to consolidated financial statements page 35