Ames National Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with net income rising to $19.0 million, an 86.2% increase from $10.2 million in 2024. This growth was primarily driven by a rise in net interest income, which reached $55.7 million, up from $45.0 million the previous year. The company attributed this increase to higher yields on loans and investments, coupled with a lower cost of funds due to declining market rates. Earnings per share also improved, climbing to $2.14 from $1.14 in 2024.
In terms of operational metrics, total assets remained relatively stable, increasing slightly to $2.134 billion from $2.133 billion in 2024. However, net loans decreased by 1.8% to $1.280 billion, primarily due to a decline in the commercial real estate loan portfolio. The company’s total deposits increased to $1.855 billion, reflecting a growth in commercial demand and interest-bearing checking accounts. The overall equity to assets ratio improved to 9.74%, up from 8.19% in the previous year, indicating a stronger capital position.
Strategically, Ames National Corporation continues to focus on its core banking operations through its six subsidiaries, which include First National Bank and State Bank & Trust. The company has maintained a disciplined approach to credit risk management, with an allowance for credit losses of $17.7 million as of December 31, 2025. This represents a slight increase from $17.1 million in 2024, reflecting the company's proactive measures in response to potential credit risks, particularly in the agricultural and commercial real estate sectors.
Looking ahead, Ames National Corporation remains cautious about the economic environment, particularly regarding inflation and interest rate fluctuations. The company has indicated that it will continue to monitor its loan portfolio closely, especially in light of the challenges posed by rising interest rates and their potential impact on borrowers' repayment capabilities. Management believes that the current capital levels and liquidity position are satisfactory to support ongoing operations and growth, while also being prepared to adapt to changing market conditions.
About AMES NATIONAL CORP
Ames National Corporation is a bank holding company based in Iowa, overseeing six community banks that provide a range of financial services, including commercial, agricultural, and residential loans, as well as wealth management. Targeting small to medium-sized businesses and local residents, the company emphasizes personalized banking relationships. With a focus on growth and community engagement, Ames National aims to meet evolving customer needs through innovative banking solutions and strong local presence.
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