Ames National Corporation reported a net income of $3.4 million, or $0.39 per share, for the first quarter of 2025, marking a significant increase from the $2.3 million, or $0.26 per share, recorded in the same period of 2024. This growth in profitability is attributed primarily to an increase in net interest income, which rose to $12.9 million from $10.9 million year-over-year. The company experienced a 5% increase in interest income, driven by higher loan volumes and yields, while interest expenses decreased by 10.9% due to reduced borrowings and lower market rates.
Total assets for Ames National Corporation increased to $2.2 billion as of March 31, 2025, up from $2.1 billion at the end of 2024. This growth was largely due to a rise in cash and cash equivalents, which reached $163.4 million, compared to $101.2 million at the end of the previous year. However, the investment portfolio saw a decline, totaling $640.4 million, down from $648.5 million, primarily due to maturities exceeding purchases. The company reported gross unrealized losses of $42.7 million in its investment portfolio, attributed to the prevailing interest rate environment.
In terms of operational metrics, the company’s loan portfolio remained stable, totaling $1.306 billion as of March 31, 2025, compared to $1.304 billion at the end of 2024. The allowance for credit losses increased to $18.0 million, or 1.36% of outstanding loans, reflecting a specific reserve placed on a commercial loan relationship. The company reported net loan charge-offs of $48,000 for the quarter, contrasting with net recoveries of $4,000 in the prior year. The level of problem loans, defined as nonaccrual loans and those past due by 90 days or more, rose to 1.25% of total loans.
Ames National Corporation continues to focus on maintaining a strong capital position, with total stockholders' equity increasing to $183.1 million as of March 31, 2025, up from $174.7 million at the end of 2024. The company declared a cash dividend of $0.20 per share, payable on June 13, 2025, to stockholders of record as of May 30, 2025. Looking ahead, the company remains optimistic about its financial performance, although it acknowledges potential risks related to economic conditions, interest rates, and credit quality in its loan portfolio.
About AMES NATIONAL CORP
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