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 due to higher yields and average balances on investments, and lower cost of funds from declining market rates and reduced borrowings.

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

• Noninterest expense rose 5.9% due to higher professional fees and salaries, 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, primarily from public funds.

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

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

Outlook and guidance

• Management expects consultant fees to continue through 2026 as contract negotiations proceed.

• 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.