[Form 4] Auburn National Bancorporation Insider Trading Activity

Rhea-AI Filing Summary

Bank of Montreal (BMO) is issuing US$170,000 aggregate principal amount of Senior Medium-Term Notes, Series K — Barrier Enhanced Return Notes due July 6 2027. The notes are linked to the least-performing of the NASDAQ-100 Index® (NDX) and the Russell 2000® Index (RTY).

Key economic terms

• Issue price: 100% of face value; minimum denomination US$1,000.
• Upside Leverage Factor: 120.20%. If the least-performing index closes at or above its initial level on the June 30 2027 valuation date, holders receive principal plus 1.202× the percentage gain of that index.
• Barrier: 70% of initial level. If the final level is between 70% and 100% of the initial level, principal is returned with no gain.
• Downside participation: If the final level is below the barrier, repayment equals principal minus the full index loss on a one-for-one basis, exposing investors to up to 100% capital loss.
• Estimated initial value: $975.18 per $1,000 note, reflecting issuer and dealer costs embedded in the offering price.
• No periodic coupons, no listing on any exchange, and secondary market liquidity, if any, will be provided solely by BMO Capital Markets Corp. (BMOCM).
• All payments are general, unsecured, unsubordinated obligations of BMO and are subject to the bank’s credit risk; the notes are not CDIC/FDIC insured.
• Pricing date: June 30 2025; settlement: July 3 2025; maturity: July 6 2027.

The pricing supplement details extensive risk factors, including credit risk, market volatility of the small-cap RTY index, foreign-listed components of NDX, lack of diversification due to “least-performing” methodology, potential conflicts of interest by BMOCM, valuation and liquidity discounts in any resale, and uncertain U.S. tax treatment (treated as a prepaid derivative contract).

Positive

• Enhanced upside participation: 120.20% leverage on any positive performance of the least-performing index boosts potential gains versus direct index investment.
• Conditional principal protection: 100% of face value is preserved provided the weakest index does not fall more than 30% over the 24-month term.
• Short, defined maturity: Two-year horizon limits long-dated market and credit exposure compared with typical 5-7 year structured notes.

Negative

• Full downside beyond barrier: Any decline greater than 30% produces dollar-for-dollar loss of principal, up to total loss.
• No interim income: The note pays no coupons, reducing total return in flat or modestly rising markets.
• Valuation gap: Estimated initial value of $975.18 is materially below the $1,000 issue price, indicating embedded fees and negative carry.
• Liquidity risk: Not exchange-listed; secondary trades, if any, depend solely on BMOCM and may be executed at significant discounts.
• Issuer credit risk: Payments rely on BMO’s ability to meet obligations; the note is unsecured and uninsured.

Insights

Structured Products Analyst

TL;DR 2-year unsecured note offers 120% upside but full downside past –30% barrier; valuation and liquidity drawbacks temper appeal.

Analysis. The note provides enhanced participation (120.20%) in the better of two equity benchmarks only if both avoid a >30% drawdown. Because payoff depends solely on the worst-performing index, diversification benefits are limited; simultaneous recessionary pressure on tech (NDX) and small-caps (RTY) could readily breach the barrier.
The embedded derivative’s estimated value of $975.18 implies an upfront cost of ~2.5% to investors, largely covering dealer compensation and hedging. Absence of interim coupons increases opportunity cost, while the 2-year tenor shortens path-dependency versus longer “autocallable” structures but still exposes holders to equity shocks.
Credit exposure to BMO is investment-grade, yet unsecured. Secondary liquidity will rely on BMOCM, likely at prices below theoretical value, especially after the three-month post-issuance concession burn-off. Tax treatment as a prepaid derivative remains unsettled, adding additional complexity for U.S. investors.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

O'DONNELL SHANNON

(Last) (First) (Middle)

P. O. BOX 3110

(Street)

AUBURN AL 36831-3110

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
AUBURN NATIONAL BANCORPORATION, INC [ AUBN ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Senior Vice President

3. Date of Earliest Transaction (Month/Day/Year)
07/02/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
common stock, par value $0.1	07/02/2025		P		17	A	$24.6912	1,499	D
common stock, par value $0.1	07/02/2025		P		13	A	$23.2233	1,512	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

Remarks:

DRIP/OCP

	/s/ Shannon O'Donnell	07/02/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What is the Upside Leverage Factor on the Bank of Montreal Barrier Enhanced Return Notes?

Investors receive 120.20% of any positive percentage change in the least-performing index, added to principal at maturity.

How much principal protection do the notes provide?

Full principal is returned only if the worst index never closes below 70% of its initial level; deeper declines reduce repayment one-for-one.

What is the estimated initial value versus the issue price?

BMO estimates each $1,000 note is initially worth $975.18, about 2.5% below the public offering price, reflecting fees and hedging costs.

Do the notes pay interest or list on an exchange?

No. The notes are non-interest-bearing and will not be listed; liquidity is expected only through dealer bid/offer quotes.

When do the notes mature and what are the key dates?

Pricing date: June 30 2025; settlement: July 3 2025; valuation date: June 30 2027; maturity payment: July 6 2027.

Which indexes underlie the Barrier Enhanced Return Notes?

The payout is linked to the NASDAQ-100 Index® (NDX) and the Russell 2000® Index (RTY); the least-performing index governs repayment.