Ames National Company Introduces Revenues for the 4th Quarter of 2022 

January 20, 2023

AMES, Iowa, Jan. 20, 2023 (WORLD WIRE SERVICE)– Ames National Company (Nasdaq: ATLO; the “Firm”) today reported earnings for the 4th quarter of 2022 of $4.4 million, or $0.49 per share, contrasted to $5.3 million, or $0.58 per share, gained in the 4th quarter of 2021. For the year finished December 31, 2022, earnings for the Firm amounted to $19.3 million or $2.14 per share, contrasted to $23.9 million or $2.62 per share gained in 2021. The decline in incomes for the 3 months as well as year finished is mostly the outcome of greater passion cost on down payments as well as less Income Security Program (” PPP”) costs acknowledged right into revenue, balanced out partially by a rise in passion revenue on financings as well as taxed protections. The greater passion cost on down payments results from a rise in market prices. In 2022, the Federal Competitive Market Board has actually enhanced its target for the government funds rate of interest by 4.25%. The boost in passion revenue on financings as well as taxed protections was mostly as a result of development in the car loan as well as financial investment profiles.

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REVENUE DECLARATION HIGHLIGHTS ( unaudited)

3 Months Finished

Year Ended

December 31,

December 31,

2022

2021

2022

2021

Take-home pay (in thousands)

$

4,412

$

5,297

$

19,293

$

23,913

Revenues per share – standard as well as watered down

$

0.49

$

0.58

$

2.14

$

2.62

Return usually possessions

0.84

%

0.99

%

0.90

%

1.15

%

Return usually equity

12.47

%

10.19

%

11.43

%

11.43

%

Performance proportion

65.04

%

57.30

%

61.41

%

55.04

%

Internet passion margin

2.45

%

2.65

%

2.55

%

2.83

%

FIRM SUPPLY HIGHLIGHTS ( unaudited)

Since or for the
3 months finished

December 31,

Firm Supply (ATLO)

2022

Closing cost

$

23.61

Rate variety

$ 22.00 – 23.76

Publication worth per usual share

$

16.58

Money reward stated

$

0.27

Returns return

4.57

%

ANNUAL REPORT HIGHLIGHTS ( unaudited)

December 31,

( Dollars in thousands)

2022

2021

Possessions

$

2,134,926

$

2,137,041

Finances receivable, web

$

1,226,011

$

1,144,108

Down Payments

$

1,897,957

$

1,878,019

Stockholders’ equity

$

149,098

$

207,778

Equity funding proportion

6.98

%

9.72

%

4th Quarter 2022 Outcomes:

4th quarter 2022 car loan passion revenue was $1.5 million greater than 4th quarter 2021. The boost is mostly as a result of development in the car loan profile as well as greater ordinary prices, balanced out partially by less PPP costs acknowledged right into revenue. Charges acknowledged from PPP financings throughout the 4th quarter of 2022 were $1 thousand as contrasted to $458 thousand throughout the 4th quarter of 2021. Taxed protections passion revenue was $836 thousand greater than the 4th quarter of 2021 due mostly to enhanced equilibriums as well as prices. Down payment passion cost enhanced $2.5 million throughout this exact same duration as a result of a rise in market rate of interest on core down payments. 4th quarter 2022 web passion revenue amounted to $12.8 million, a decline of $716 thousand, or 5%, contrasted to the exact same quarter a year earlier. The Firm’s web passion margin was 2.45% for the quarter finished December 31, 2022 as contrasted to 2.65% for the quarter finished December 31, 2021. The decline in web passion margin was mostly as a result of a rise in market rate of interest on core down payments over of price boosts on interest-earning possessions as well as a decrease in PPP costs.

A credit history for car loan losses of ($ 168) thousand was acknowledged in the 4th quarter of 2022 as contrasted to a credit history for car loan losses of ($ 217) thousand in the 4th quarter of 2021. Internet car loan charge-offs amounted to $32 thousand for the quarter finished December 31, 2022 contrasted to web car loan healings of $8 thousand for the quarter finished December 31, 2021. The credit history for car loan losses in 2022 was mostly as a result of a decrease in details gets as well as balanced out partially by development in the car loan profile. The credit history for car loan losses in the 4th quarter of 2021 was mostly as a result of boosting financial problems.

Noninterest revenue for the 4th quarter of 2022 amounted to $2.5 million as contrasted to $2.7 million in the 4th quarter of 2021, a decline of 9%. The decline in noninterest revenue was mostly as a result of less gains on sale of domestic financings held up for sale as refinancing quantity has actually reduced.

Noninterest cost for the 4th quarter of 2022 amounted to $9.9 million contrasted to $9.3 million taped in the 4th quarter of 2021, a rise of 7%. The boost is mostly as a result of regular boosts in wages as well as greater tenancy costs as an outcome of a branch remodel. The performance proportion was 65.0% for the 4th quarter of 2022 as contrasted to 57.3% in the 4th quarter of 2021.

Revenue tax obligation cost for the 4th quarter of 2022 amounted to $1.1 million contrasted to $1.9 million taped in the 4th quarter of 2021. The reliable tax obligation price was 20% as well as 26% for the quarters finished December 31, 2022 as well as 2021, specifically. The decline in the reliable tax obligation price was mostly as a result of a deferred tax obligation evaluation allocation developed in the 4th quarter of 2021 on a state tax obligation web operating loss at the holding business.

Year 2022 Outcomes:

For the year finished December 31, 2022 car loan passion revenue was $1.9 million less than the year finished 2021. The decline is mostly as a result of less PPP costs acknowledged right into revenue as well as partly balanced out by development in the car loan profile. Charges acknowledged from PPP financings throughout the year finished December 31, 2022 were $218 thousand as contrasted to $4.3 million throughout the year finished December 31, 2021. Taxed protections passion revenue was $3.2 million greater than 2021 due mostly to enhanced equilibriums. Down payment passion cost enhanced $3.0 million throughout this exact same duration mostly pertaining to a rise in market rate of interest on core down payments. The web passion revenue for the year finished December 31, 2022 amounted to $53.2 million, a decline of $2.8 million, or 5%, contrasted to the exact same duration a year earlier. The Firm’s web passion margin was 2.55% for the year finished December 31, 2022 as contrasted to 2.83% for the year finished December 31, 2021. The decline in web passion margin was mostly as a result of a decrease in PPP costs as well as a rise in market rate of interest on core down payments.

A credit history for car loan losses of ($ 874) thousand was acknowledged for the year finished December 31, 2022 as contrasted to a credit history for car loan losses of ($ 757) thousand for the year finished December 31, 2021. Internet car loan charge-offs amounted to $50 thousand for the year finished December 31, 2022 contrasted to web car loan healings of $163 thousand for the year finished December 31, 2021. The credit history for car loan losses in 2022 was mostly as a result of a decrease in details gets as well as balanced out partially by development in the car loan profile. The credit history for car loan losses in 2021 was mostly as a result of car loan healings, a decrease in details gets, as well as boosting financial problems.

Noninterest revenue for the year finished December 31, 2022 amounted to $9.7 million contrasted to $10.5 million for the year finished December 31, 2021, a decline of 8%. The decline in noninterest revenue was mostly as a result of less gains on sale of domestic financings held up for sale as refinancing quantity has actually reduced as well as balanced out partially by a rise in riches monitoring revenue as a result of development in possessions under monitoring as well as brand-new account partnerships.

Noninterest cost for the year finished December 31, 2022 amounted to $38.6 million contrasted to $36.6 million for the year finished December 31, 2021, a rise of 6%. The boost is mostly as a result of information handling sets you back as an outcome of extra financial investments in innovation as well as regular boosts in wages as well as advantages. The performance proportion was 61.4% as well as 55.0% for the year finished December 31, 2022 as well as 2021, specifically.

Revenue tax obligation cost for the year finished December 31, 2022 as well as 2021 amounted to $5.9 million as well as $6.8 million, specifically. The reliable tax obligation price was 23% as well as 22% for the year finished December 31, 2022 as well as 2021, specifically. The boost in the reliable tax obligation price in 2022 resulted from a $780 thousand change to deferred tax obligations for the decrease in future Iowa financial institution franchise business tax obligation prices established in the 2nd quarter of 2022. The less than anticipated tax obligation price in 2022 as well as 2021 scheduled mostly to tax-exempt passion revenue as well as New Markets Tax Obligation Credits.

Annual Report Evaluation:

Since December 31, 2022, complete possessions were $2.13 billion, a decline of $2.1 million, as contrasted to December 31, 2021. The biggest variations in possessions throughout 2022 was mostly as a result of greater latent losses on the financial investment profile as market rate of interest have actually increased. In the exact same amount of time, raises in car loan quantity as well as acquisitions of financial investments were moneyed by government funds offered as well as a rise in down payments as well as advancements.

Stocks available-for-sale since December 31, 2022 lowered to $786.4 million from $831.0 million since December 31, 2021. The decline in protections available-for-sale is mostly as a result of a decrease in reasonable worth of the profile as a result of rate of interest boosts throughout 2022. The decline is balanced out partially by acquisitions of united state treasuries as well as local protections.

Internet financings since December 31, 2022 enhanced to $1.23 billion, as contrasted to $1.14 billion since December 31, 2021. The boost was mostly as a result of a rise in the 1-4 household as well as industrial realty profiles. Damaged financings were $14.4 million as well as $12.3 million since December 31, 2022 as well as 2021, specifically. Finances identified as substandard were $24.2 million as well as $36.9 million since December 31, 2022 as well as 2021, specifically. Finances identified as watch as well as unique reference amounted to $124.1 million as well as $165.3 million since December 31, 2022 as well as 2021, specifically. The allocation for car loan losses on December 31, 2022 amounted to $15.7 million, or 1.26% of gross financings, contrasted to $16.6 million, or 1.43% of gross financings, since December 31, 2021. The decline in the allocation for car loan losses is primarily as a result of reduced details gets as well as enhanced high quality of the car loan profile, balanced out partially by car loan development.

Down payments amounted to $1.90 billion since December 31, 2022, a rise of 1%, contrasted to $1.88 billion taped since December 31, 2021. The development in down payments is mostly as a result of boosts in interest-bearing core down payments, consisting of industrial as well as public funds, balanced out partially by a decline in time down payments. Down payment equilibriums change as clients’ liquidity demands differ as well as can be affected by dominating market rate of interest, competitors, as well as financial problems.

The Firm’s shareholders’ equity stood for 7.0% of complete possessions since December 31, 2022 with every one of the Firm’s 6 associate financial institutions thought about well-capitalized as specified by government funding laws. Complete shareholders’ equity was $149.1 million since December 31, 2022, contrasted to $207.8 million since December 31, 2021. The decline in shareholders’ equity was mostly the outcome of a rise in latent losses on the financial investment profile, balanced out partially by the retention of earnings over of returns.

Rewards

On November 9, 2022, the Firm stated a quarterly money reward on ordinary shares, payable on February 15, 2023 to shareholders of document since February 1, 2023, equivalent to $0.27 per share.

4 returns were stated throughout 2022 contrasted to 5 returns stated throughout 2021. Rewards are commonly stated in one quarter and after that paid in the succeeding quarter. Starting in July 2020 the returns were stated as well as paid in the exact same quarter prior to going back to the previous technique in August 2021.

Forecasted Revenues

The Firm is anticipating incomes for the year finishing December 31, 2023 in the variety of $1.75 to $1.85 per share contrasted to $2.14 per share gained for the year finished December 31, 2022. The decline in forecasted incomes from the 2022 real outcomes was mostly attributable to a predicted boost in wages as well as passion cost as a result of proceeding inflationary stress as well as greater anticipated market rate of interest.

Concerning Ames National Company

Ames National Company associate Iowa financial institutions are First National Financial Institution, Ames; Boone Financial Institution & & Count On Co., Boone; State Financial Institution & & Count On Co., Nevada; Dependence State Financial Institution, Tale City; United Financial Institution & & Count On, Marshalltown; as well as Iowa State Cost Savings Financial Institution, Creston, Iowa.

The Exclusive Stocks Lawsuits Reform Act of 1995 gives the Firm with the chance to make cautionary declarations pertaining to progressive declarations had in this Press release, consisting of progressive declarations worrying the Firm’s future efficiency as well as possession high quality. Positive declarations had in this Press release are not historic realities as well as are based upon monitoring’s present ideas, presumptions, forecasts as well as assumptions of future occasions, consisting of the Firm’s future efficiency, thinking about all details presently offered to monitoring. These ideas, presumptions, forecasts as well as assumptions go through countless dangers as well as unpredictabilities as well as can alter as an outcome of numerous feasible occasions or elements, not every one of which are recognized to monitoring as well as a number of which are past monitoring’s control. If a modification takes place, the Firm’s service, economic problem, liquidity, outcomes of procedures, possession high quality, strategies as well as purposes might differ materially from those revealed in the progressive declarations. As necessary, financiers are warned not to position unnecessary dependence on such progressive declarations. These declarations are usually, yet not constantly, made with making use of words or expressions such as “expects,” “thinks,” “can,” “could,” “may,” “anticipates,” “prospective,” “should,” “will,” “quote,” “strategies,” “tasks,” “projections”, “proceeding,” “recurring,” “anticipates,” “sights,” “plans” as well as comparable words or expressions. The dangers as well as unpredictabilities that might influence the Firm’s future efficiency as well as possession high quality consist of, yet are not restricted to, the following: the significant adverse influence of the proceeding COVID-19 pandemic on nationwide, local as well as regional economic climates as a whole as well as on the Firm’s clients particularly; affordable items as well as rates offered in the industry; modifications in credit history as well as various other dangers presented by the Firm’s car loan as well as financial investment profiles, consisting of decreases in industrial or domestic realty worths or modifications in the allocation for car loan losses arising from the COVID-19 pandemic or as determined by brand-new market problems or governing demands; modifications in regional, nationwide as well as global financial problems, consisting of increasing inflation prices; financial as well as financial plans of the united state federal government; modifications in governmental laws impacting banks (consisting of governing costs as well as funding demands); modifications in dominating rate of interest; credit history danger monitoring as well as asset/liability monitoring; the economic as well as protections markets; the schedule of as well as price connected with resources of liquidity; as well as various other dangers as well as unpredictabilities fundamental in the Firm’s service, consisting of those gone over under the headings “Forward-Looking Statements as well as Organization Dangers” as well as “Threat Variables” in the Firm’s Yearly Record on Kind 10-K for the year-ended December 31, 2021. Any kind of progressive declarations are certified in their whole by the foregoing dangers as well as unpredictabilities as well as talk just since the day on which such declarations are made. The Firm carries out no responsibility to change or upgrade such progressive declarations to show occasions or conditions after the day on which the declarations are made or to show the incident of unforeseen occasions.

AMES NATIONAL FIRM AND ALSO SUBSIDIARIES

Consolidated Equilibrium Sheets

( in thousands, other than share as well as per share information)

( unaudited)

( examined)

December 31,

December 31,

POSSESSIONS

2022

2021

Money as well as due from financial institutions

$

20,819

$

19,590

Interest-bearing down payments in banks as well as government funds offered

7,065

69,539

Complete money as well as money matchings

27,884

89,129

Interest-bearing time down payments

14,669

16,922

Stocks available-for-sale

786,438

831,003

Federal Home Mortgage Financial Institution (FHLB) as well as Reserve Bank (FRB) supply, at price

4,613

3,422

Finances receivable, web

1,226,011

1,144,108

Finances held up for sale

154

Financial institution properties as well as devices, web

18,895

17,512

Built up revenue receivable

11,275

10,124

Bank-owned life insurance policy

3,054

2,985

Deferred revenue tax obligations, web

22,130

1,922

Various other abstract possessions, web

1,931

2,505

A Good Reputation

12,424

12,424

Various other possessions

5,448

4,985

Complete possessions

$

2,134,926

$

2,137,041

OBLIGATIONS AND ALSO SHAREHOLDERS’ EQUITY

OBLIGATIONS

Down Payments

Noninterest-bearing monitoring

$

391,576

$

411,585

Interest-bearing monitoring

617,379

575,997

Cost savings as well as cash market

675,031

674,975

Time, $250 as well as over

42,886

40,793

Various other time

171,085

174,669

Complete down payments

1,897,957

1,878,019

Stocks offered under contracts to repurchase

40,676

39,851

FHLB advancements as well as various other loanings

39,120

3,000

Dividends payable

2,428

2,364

Built up costs as well as various other responsibilities

5,647

6,029

Complete responsibilities

1,985,828

1,929,263

SHAREHOLDERS’ EQUITY

Ordinary shares, $2 par worth, accredited 18,000,000 shares; provided as well as exceptional 8,992,167 ( unaudited) as well as 9,092,167 shares since December 31, 2022 as well as 2021, specifically.

17,984

18,184

Extra paid-in funding

14,253

16,353

Preserved incomes

179,931

170,377

Collected various other detailed revenue (loss)

( 63,070

)

2,864

Complete shareholders’ equity

149,098

207,778

Complete responsibilities as well as shareholders’ equity

$

2,134,926

$

2,137,041

AMES NATIONAL FIRM AND ALSO SUBSIDIARIES

Consolidated Statements of Revenue

( in thousands, other than per share information)

( unaudited)

( unaudited)

( unaudited)

( examined)

3 Months Finished

Year Ended

December 31,

December 31,

2022

2021

2022

2021

Rate of interest as well as reward revenue:

Finances, consisting of costs

$

12,727

$

11,188

$

45,956

$

47,829

Stocks

Taxed

3,240

2,404

12,101

8,861

Tax-exempt

605

703

2,595

3,095

Various other passion as well as reward revenue

226

182

901

697

Complete passion as well as reward revenue

16,798

14,477

61,553

60,482

Rate of interest cost:

Down Payments

3,395

931

7,316

4,342

Various other obtained funds

610

37

993

143

Complete passion cost

4,005

968

8,309

4,485

Internet passion revenue

12,793

13,509

53,244

55,997

Arrangement (credit history) for car loan losses

( 168

)

( 217

)

( 874

)

( 757

)

Internet passion revenue after arrangement (credit history) for car loan losses

12,961

13,726

54,118

56,754

Noninterest revenue:

Wide range monitoring revenue

1,349

1,224

4,938

4,448

Service charge

338

409

1,351

1,474

Stocks gains, web

37

24

Gain on sale of financings held up for sale

105

360

606

1,673

Seller as well as card costs

455

511

1,817

2,019

Various other noninterest revenue

222

218

938

899

Complete noninterest revenue

2,469

2,722

9,687

10,537

Noninterest cost:

Incomes as well as fringe benefit

5,817

5,515

22,909

22,281

Information handling

1,559

1,560

6,153

5,549

Tenancy costs, web

848

665

2,945

2,664

FDIC insurance policy analyses

158

137

608

578

Expert costs

481

356

1,888

1,663

Organization advancement

446

630

1,427

1,465

Abstract possession amortization

136

149

574

628

Brand-new markets tax obligation credit history tasks amortization

188

160

755

639

Various other business expenses, web

294

129

1,385

1,151

Complete noninterest cost

9,927

9,301

38,644

36,618

Revenue prior to revenue tax obligations

5,503

7,147

25,161

30,673

Revenue tax obligation cost

1,091

1,850

5,868

6,760

Take-home pay

$

4,412

$

5,297

$

19,293

$

23,913

Fundamental as well as watered down incomes per share

$

0.49

$

0.58

$

2.14

$

2.62

Declared returns per share

$

0.27

$

0.26

$

1.08

$

1.29

GET IN TOUCH WITH:

JOHN P. NELSON

CHIEF EXECUTIVE OFFICER AND ALSO HEAD OF STATE

( 515) 232-6251