Ames National (ATLO) investor relations material

Executive summary

• Net income for Q1 2026 was $6.0 million ($0.67 per share), up from $3.4 million ($0.39 per share) in Q1 2025, driven by higher net interest income and lower credit loss expense.

• Net interest income rose 19.5% year-over-year to $15.4 million, reflecting improved yields, higher investment balances, and lower funding costs.

• Noninterest income increased 9.3% year-over-year to $2.8 million, mainly from higher wealth management and estate/trust fees.

• Noninterest expense rose 5.9% year-over-year to $10.9 million, due to higher professional fees and employee compensation, with efficiency ratio improving to 59.69% from 66.38%.

Financial highlights

• Total assets as of March 31, 2026 were $2.14 billion, up $9.0 million from December 31, 2025.

• Investment portfolio grew to $688.8 million, up $32.8 million sequentially.

• Loan portfolio, net of allowance, decreased to $1.26 billion from $1.28 billion, mainly due to payoffs in commercial real estate and agricultural loans.

• Deposits increased to $1.87 billion from $1.85 billion sequentially, but decreased 2.0% year-over-year due to lower public funds, partially offset by higher retail/commercial checking.

• Allowance for credit losses was $17.4 million (1.36% of loans) as of March 31, 2026, slightly down from $17.7 million.

• Gross unrealized losses on securities were $30.1 million, attributed to interest rate environment, not credit issues.

• Return on average assets improved to 1.12% from 0.65% year-over-year; return on average equity rose to 11.31% from 7.72%.

• Book value per share was $23.44 as of March 31, 2026.

Outlook and guidance

• Consultant fees related to contract negotiations are expected to continue throughout 2026.

• Liquidity and capital resources are considered satisfactory, with no material capital expenditures or changes in capital resource mix anticipated.

• No known trends in liquidity or cash flow needs are of concern as of March 31, 2026.

• Anticipated bonus payouts expected as performance thresholds are met.