750574--3/31/2006--AUBURN_NATIONAL_BANCORPORATION_INC

related topics
{condition, economic, financial}
{stock, price, share}
{competitive, industry, competition}
{capital, credit, financial}
{product, market, service}
{operation, natural, condition}
{acquisition, growth, future}
{regulation, change, law}
Our future success is dependent on our ability to compete effectively in highly competitive markets. Our success depends on local economic conditions where we operate. Our cost of funds may increase as a result of general economic conditions, interest rates and competitive pressures. Our profitability and liquidity may be affected by changes in interest rates and economic conditions. We are required to maintain capital to meet regulatory requirements, and if we fail to maintain sufficient capital, our financial condition, liquidity and results of operations would be adversely affected. We are subject to extensive regulation that could limit or restrict our activities and adversely affect our earnings. We may need to raise additional capital in the future, but that capital may not be available when it is needed or on favorable terms. Technological changes affect our business, and we may have fewer resources than many competitors to invest in technological improvements. Our ability to continue to pay dividends to shareholders in the future is subject to profitability, capital, liquidity and regulatory requirements and these limitations may prevent us from paying dividends in the future. Our common stock is not heavily traded. Severe weather, natural disasters, acts of war or terrorism or other external events could have a significant impact on our business.

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