Ames National Corporation Reports $5.9 Million Net Income for Q2 2026

Ames National Corporation reported a net income of $5.9 million, or $0.67 per share, for the three months ended June 30, 2026, marking an increase from $4.5 million, or $0.51 per share, in the same period last year. For the first half of 2026, the company achieved a net income of $11.9 million, or $1.34 per share, compared to $8.0 million, or $0.89 per share, for the first half of 2025. The growth in earnings is attributed to an increase in net interest income, which rose due to higher yields and average balances on investments, alongside a reduction in the cost of funds driven by declining market rates.

Total assets for Ames National Corporation decreased slightly to $2.12 billion as of June 30, 2026, down from $2.13 billion at the end of 2025. This decline was primarily due to a reduction in the loan portfolio and interest-bearing deposits, which was partially offset by an increase in securities available-for-sale, which totaled $695 million, up from $656 million at the end of the previous year. The company’s loan portfolio, net of the allowance for credit losses, was reported at $1.25 billion, down from $1.28 billion, reflecting payoffs in commercial real estate and agricultural loans.

In terms of operational metrics, the company’s total deposits remained relatively stable at $1.85 billion as of June 30, 2026, compared to $1.85 billion at the end of 2025. However, there was a noted decrease in retail and commercial interest-bearing deposits, which was offset by an increase in public funds. The allowance for credit losses stood at $17.3 million, or 1.36% of outstanding loans, consistent with the previous period. The company reported a credit loss benefit of $139,000 for the first half of 2026, contrasting with a credit loss expense of $1.1 million for the same period in 2025.

Strategically, Ames National Corporation continues to focus on enhancing its operational efficiency and maintaining a competitive edge in the market. The company employs 29 individuals in its corporate structure, alongside 232 full-time equivalent employees across its six bank subsidiaries. The management emphasizes local decision-making to improve customer service and response times, which is seen as a key competitive advantage. Looking ahead, the company remains optimistic about its financial performance, supported by a solid capital position and a commitment to managing credit risk effectively in a challenging economic environment.