Ames National Corporation ( (ATLO) ) has released its Q1 earnings. Here is a breakdown of the information Ames National Corporation presented to its investors.
Ames National Corporation is a financial services company operating in the banking sector, providing a range of banking products and services through its affiliate banks in Iowa.
In its first-quarter earnings report for 2025, Ames National Corporation reported a significant increase in net income, reaching $3.4 million, or $0.39 per share, compared to $2.3 million, or $0.26 per share, in the same period of the previous year. This growth was primarily driven by an increase in net interest income, despite a rise in credit loss expenses.
Key financial highlights include a 18.4% increase in net interest income to $12.9 million, attributed to higher loan volumes and yields, and a decrease in interest expenses on borrowings. The company’s net interest margin improved to 2.53% from 2.13% a year ago. Noninterest income also saw a rise of 17.0% due to increased wealth management income and reduced losses on securities sales. However, credit loss expenses rose significantly to $962 thousand, primarily due to increased reserves on commercial loans.
The balance sheet showed a slight decrease in total assets to $2.18 billion, with a notable reduction in securities available-for-sale. Loans receivable increased by 2.6%, driven by growth in agriculture and residential real estate loans. Deposits grew by 1.8%, while borrowings were significantly reduced. Stockholders’ equity rose to $183.1 million, reflecting decreased unrealized losses and retained earnings.
Looking ahead, Ames National Corporation remains focused on maintaining its financial stability and growth, with management expressing cautious optimism about future performance amidst changing market conditions.