Core Insights - The article discusses the expertise of Labutes IR as a Fund Manager/Analyst in the financial sector, highlighting over 18 years of experience in financial markets [1] Group 1 - Labutes IR specializes in the financial sector and has extensive experience in portfolio management [1] - The author has worked at various institutions on the buy side, indicating a strong background in investment strategies [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [Mark One] ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 0-32637 AMES NATIONAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (St ...

EXHIBIT 99.1 NEWS RELEASE CONTACT: JOHN P. NELSON FOR IMMEDIATE RELEASE CEO AND PRESIDENT (515) 232-6251 AMES NATIONAL CORPORATION ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF 2025 Ames, Iowa – Ames National Corporation (Nasdaq: ATLO; the "Company") today reported net income for the second quarter of 2025 of $4.5 million, or $0.51 per share, compared to $2.2 million, or $0.24 per share, earned in the second quarter of 2024. The increase in earnings is primarily due to an increase in net interest income. The ...

Financial Performance - The Company reported net income of $3.4 million, or $0.39 per share, for Q1 2025, up from $2.3 million, or $0.26 per share, in Q1 2024, primarily due to increased net interest income [104]. - Net interest income for Q1 2025 was $12.9 million, compared to $10.9 million in Q1 2024, reflecting a 18.4% increase [118]. - Noninterest income for Q1 2025 totaled $2.55 million, a 17.0% increase from $2.18 million in Q1 2024, attributed to reduced losses on securities sales and growth in wealth management income [122]. - Noninterest expense for Q1 2025 was $10.26 million, a 0.7% increase from $10.19 million in Q1 2024, with an efficiency ratio improving to 66.38% from 77.92% [123]. - Income tax expense for Q1 2025 totaled $794 thousand, up from $416 thousand in Q1 2024, with effective tax rates of 19% and 15% respectively [124]. - Net cash provided by operating activities for the three months ended March 31, 2025, totaled $7.1 million, an increase of $5.7 million from $1.4 million in the same period of 2024 [154]. Interest and Loan Performance - The net interest margin on a fully taxable equivalent (FTE) basis improved to 2.53% in Q1 2025 from 2.13% in Q1 2024 [118]. - Interest income increased by $1.0 million, or 5.0%, in Q1 2025 compared to Q1 2024, driven by higher interest rates and growth in the loan portfolio [119]. - Interest expense decreased by $1.0 million, or 10.9%, in Q1 2025 compared to Q1 2024, mainly due to reduced borrowings and lower market rates [120]. - Credit loss expense rose to $962 thousand in Q1 2025 from $169 thousand in Q1 2024, primarily due to increased specific reserves in the commercial loan portfolio [121]. - Net loan charge-offs for Q1 2025 were $48 thousand, compared to net loan recoveries of $4 thousand in Q1 2024 [105]. Asset and Liability Management - Total assets as of March 31, 2025, were $2.2 billion, reflecting a $51.1 million increase from December 31, 2024 [126]. - The investment portfolio decreased to $640.4 million as of March 31, 2025, down $8.1 million from $648.5 million at December 31, 2024 [127]. - The loan portfolio, net of allowance for credit losses, totaled $1.306 billion as of March 31, 2025, compared to $1.304 billion at December 31, 2024 [133]. - Deposits increased to $1.91 billion as of March 31, 2025, from $1.85 billion at December 31, 2024, primarily due to an increase in public funds [134]. - The allowance for credit losses was 1.36% of outstanding loans as of March 31, 2025, up from 1.29% at December 31, 2024, totaling $18.0 million compared to $17.1 million [145]. - Problem loans as a percentage of total loans increased to 1.25% as of March 31, 2025, compared to 1.17% at December 31, 2024 [137]. - Substandard-impaired loans rose to $15.7 million as of March 31, 2025, an increase of $1.5 million from $14.2 million at December 31, 2024 [138]. - Other borrowings decreased to $35.8 million as of March 31, 2025, down from $47.0 million at December 31, 2024 [135]. - As of March 31, 2025, commercial real estate and multi-family real estate represent approximately 42% of the loan portfolio, totaling $551.9 million [147]. - The liquidity sources include liquid assets totaling $163.4 million as of March 31, 2025, compared to $101.2 million as of December 31, 2024 [151]. Equity and Dividends - The Company's total stockholders' equity as of March 31, 2025, was $183.1 million, an increase of $8.4 million from $174.7 million as of December 31, 2024 [160]. - Dividends paid by the Banks to the Company amounted to $3.2 million for the three months ended March 31, 2025, compared to $2.6 million in 2024 [158]. - The Company declared a cash dividend of $0.20 per share on February 12, 2025, payable on June 13, 2025 [161]. Capital and Regulatory Compliance - The Company has outstanding lines of credit with the FHLB of Des Moines totaling $242.5 million as of March 31, 2025 [152]. - The capital levels of the Company exceed applicable regulatory guidelines to be considered "well capitalized" as of March 31, 2025 [160]. - The Company did not have any external debt financing or off-balance sheet financing arrangements as of March 31, 2025 [156]. Operational Efficiency and Management - The Company aims to enhance operational efficiency to improve profitability and offer competitive loan and deposit rates [102]. - The Company employs 26 individuals for support functions, in addition to 232 full-time equivalent employees at its banks [101]. - The Company approved a Stock Repurchase Plan in November 2024, allowing for the repurchase of up to 100,000 shares of common stock, with 23,390 shares remaining to be purchased as of March 31, 2025 [168]. - There were no material changes in the risk factors disclosed in the Company's Form 10-K filed on March 12, 2025 [166]. - The Company's management concluded that the disclosure controls and procedures are effective for ensuring timely reporting of required information under the Securities Exchange Act of 1934 [164].

Financial Performance - Net income for Q1 2025 was $3.4 million, or $0.39 per share, up from $2.3 million, or $0.26 per share in Q1 2024, representing a 47.8% increase in earnings[2] - Net income rose to $3,443 thousand for the first quarter of 2025, up from $2,304 thousand in the same period of 2024, marking an increase of approximately 49.5%[25] - Basic and diluted earnings per share improved to $0.39 in Q1 2025, compared to $0.26 in Q1 2024, an increase of approximately 50%[25] Income Sources - Net interest income increased by $2.0 million, or 18.4%, to $12.9 million in Q1 2025 compared to Q1 2024, driven by higher loan volume and yield[6] - Noninterest income rose to $2.55 million in Q1 2025, a 17.0% increase from $2.18 million in Q1 2024, primarily due to higher wealth management income[8] - Noninterest income grew to $2,547 thousand in Q1 2025, up from $2,177 thousand in Q1 2024, representing an increase of about 17%[25] Efficiency and Management - The efficiency ratio improved to 66.38% in Q1 2025 from 77.92% in Q1 2024, reflecting better cost management and increased net interest margin[9] Assets and Liabilities - Total assets as of March 31, 2025, were $2.18 billion, a slight decrease of $7.5 million from $2.19 billion in the previous year[11] - Total assets decreased slightly to $2,184,293 thousand as of March 31, 2025, from $2,191,842 thousand in 2024, a decline of approximately 0.34%[23] - Total liabilities decreased to $2,001,237 thousand in 2025 from $2,026,302 thousand in 2024, a decline of approximately 1.2%[23] Loans and Deposits - Loans receivable increased to $1.31 billion, a 2.6% rise from $1.27 billion as of March 31, 2024, with growth in agriculture and residential real estate loans[13] - Deposits totaled $1.91 billion, up 1.8% from $1.87 billion in the previous year, driven by increases in time deposits and public funds[15] - Total deposits increased to $1,906,384 thousand in 2025, up from $1,872,123 thousand in 2024, reflecting a growth of about 1.8%[23] Credit and Dividends - The allowance for credit losses was $18.0 million, or 1.36% of loans, compared to $17.0 million, or 1.31% of loans, as of March 31, 2024[14] - Credit loss expense increased to $962 thousand in Q1 2025, compared to $169 thousand in Q1 2024, indicating a significant rise in provisions for potential loan losses[25] - The Company declared a quarterly cash dividend of $0.20 per share, with a dividend yield of 4.57%[4][19] - Dividends declared per share decreased to $0.20 in Q1 2025 from $0.27 in Q1 2024, a reduction of approximately 25.9%[25] Shareholder Actions - The Company repurchased 33,553 shares of common stock at an average price of $16.41 per share during the first quarter of 2025[18] - Retained earnings increased to $183,914 thousand as of March 31, 2025, compared to $180,316 thousand in 2024, reflecting a growth of about 2.9%[23]

Financial Performance - As of December 31, 2024, First National Bank had total assets of approximately $1.11 billion, down from $1.14 billion in 2023, with net income of approximately $5.2 million compared to $5.5 million in 2023[20]. - State Bank reported total assets of approximately $198.6 million as of December 31, 2024, a decrease from $201.7 million in 2023, with net income of approximately $933 thousand, down from $1.4 million in 2023[22]. - Boone Bank's total assets increased to approximately $156.7 million as of December 31, 2024, up from $149.4 million in 2023, with net income of approximately $616 thousand compared to $740 thousand in 2023[24]. - Reliance Bank had total assets of approximately $307.5 million as of December 31, 2024, down from $313.3 million in 2023, with net income of approximately $1.9 million, up from $1.7 million in 2023[26]. - United Bank's total assets increased to approximately $130.3 million as of December 31, 2024, compared to $118.5 million in 2023, with net income of approximately $1.1 million, up from $1.0 million in 2023[28]. - Iowa State Bank reported total assets of approximately $270.3 million as of December 31, 2024, an increase from $254.7 million in 2023, with net income of approximately $2.0 million for both years[30]. - The Company reported net income of $10.2 million for the year ended December 31, 2024, a decrease of 5.5% compared to $10.8 million in 2023[180]. - Earnings per share for 2024 were $1.14, down from $1.20 in 2023[180]. - Interest income increased to $82.6 million in 2024 from $74.3 million in 2023, while interest expense rose to $37.6 million from $29.7 million[175]. - The Company's return on average equity for 2024 was 6.02%, down from 7.05% in 2023, and return on average assets was 0.48%, compared to 0.51% in 2023[181]. - The efficiency ratio for 2024 was 76.59%, compared to 74.60% in 2023, indicating a decline in operational efficiency[175]. - Net interest income for 2024 totaled $45.0 million, a 0.8% increase from $44.6 million in 2023[210]. Loan Portfolio - The Banks' loan portfolio consists of approximately 53% commercial loans, 22% agricultural loans, and 23% residential loans[34][35][36]. - Commercial real estate loans account for approximately 54% of the loan portfolio, with loan-to-appraisal value ratios not exceeding 80%[40]. - Commercial and agricultural operating and term loans represent about 17% of the loan portfolio, with loan-to-value ratios generally not exceeding 75%[42]. - Residential first mortgage loans, home equity term loans, and home equity lines of credit together make up approximately 23% of the loan portfolio, with loan-to-value ratios typically not exceeding 90%[47]. - Consumer loans represent around 1% of the loan portfolio, with automobile loans not exceeding 90% of the value for new cars and 75% for used cars[48]. - The allowance for credit losses for loans is established through a disciplined process, incorporating both asset-specific and pooled components to estimate expected credit losses[189]. - The company's credit loss expense is necessary to maintain the allowance for credit losses at the expected levels inherent within the loan portfolio[194]. - Net loan charge-offs increased to $453 thousand in 2024 compared to $213 thousand in 2023, primarily due to growth in the loan portfolio[212]. - Loans classified as substandard and substandard-impaired rose by $18.0 million to $49.7 million in 2024, mainly due to downgrades in commercial real estate and operating loan portfolios[212]. Regulatory Environment - The Company is subject to extensive federal and state regulation, which may materially affect its business and operations in the future[71]. - As of December 31, 2024, the Banks exceeded all regulatory capital requirements and were designated as "well capitalized" under federal guidelines[94]. - The deposit insurance coverage limit is $250,000 per depositor, per insured depository institution for each account ownership category[87]. - The Federal Reserve requires bank holding companies to obtain approval before acquiring more than 5% of the voting stock of any bank[75]. - The Dodd-Frank Act subjects the Banks to regulations from the Consumer Financial Protection Bureau, which has substantial power over consumer financial products and services[85]. - Iowa law currently has a deposit concentration limit of 15% on the amount of deposits that any one banking organization can control[80]. - The Basel III Capital Rules require a Common Equity Tier 1 (CET1) ratio of 6.5% for well-capitalized status[91]. - The Federal Reserve and the FDIC have issued policy statements that generally restrict insured banks and bank holding companies from paying dividends unless out of current operating earnings[96]. - The Company’s ability to pay dividends is subject to federal regulatory considerations and may be impacted by its financial condition and capital requirements[167]. Market Competition - The geographic market area served by the Banks is highly competitive, with 49 FDIC insured institutions having around 125 locations in the primary trade areas[67]. - The Company anticipates continued changes in bank competition, particularly from fintech companies and credit unions, which have significant competitive advantages[69]. - The Company faces significant competition from larger financial institutions, which may adversely affect its ability to compete effectively in the market[140]. - The competitive landscape in Ames, Iowa, includes fifteen banks and five credit unions, which may exert downward pressure on the net interest margin[211]. Operational Risks - The Company employs approximately 268 individuals, with 93% being full-time employees and an average tenure of about eleven years[52]. - The Company faces risks related to credit losses, particularly if actual credit losses exceed the allowance for credit losses, which could decrease net income[116]. - The Company must maintain disciplined underwriting standards to manage credit risk effectively, as weakening these standards could lead to increased loan defaults[113]. - The Company is exposed to operational risks from data processing failures and employee misconduct, which could result in financial losses and regulatory sanctions[125]. - Operational risks include the potential inability to attract and retain key personnel, which could hinder business growth and operations[124]. - The Company faces cybersecurity risks, with increased threats due to remote working, which could lead to significant financial losses[129]. - Damage to the company's reputation from various sources, including cybersecurity breaches, could lead to lost revenue and increased costs[136]. Investment and Asset Management - Assets under management for wealth management services increased to $456.3 million as of December 31, 2024, up from $416.0 million in 2023[38]. - The investment policy focuses on U.S. Government securities and corporate debt securities, balancing liquidity needs with risk minimization and yield maximization[49]. - The fair value of the Company's securities portfolio was approximately $648.5 million as of December 31, 2024, with a net unrealized loss of $52.0 million primarily due to increased interest rates[119]. - The company's investment securities portfolio generated a total revenue of $14,539 in 2024, with a yield of 2.08%, compared to $15,575 and a yield of 2.03% in 2023[204]. Economic Environment - Consumer inflation, as measured by the Consumer Price Index, increased by 3.4% for the year ended December 31, 2023, and 2.9% for the year ended December 31, 2024[111]. - The economic environment, including inflation and interest rates, significantly impacts the Company's financial performance and the ability of customers to repay loans[109]. - The Company is subject to risks from evolving trade policies that could disrupt major trade relationships, affecting customer repayment capabilities[112]. - The Federal Open Market Committee has initiated a series of increases in the short-term federal funds interest rate to combat inflation, which could adversely affect economic activity[110]. - The Company is facing challenges from elevated interest rates, which may negatively impact net interest income and margins going forward[184]. Shareholder Returns - The Company declared aggregate annual cash dividends of approximately $8.4 million in 2024 and $9.7 million in 2023, translating to $0.94 per share in 2024 and $1.08 per share in 2023[166]. - A successor Stock Repurchase Plan was approved on November 14, 2024, allowing for the purchase of up to 100,000 shares, set to expire on November 12, 2025[172]. - The Company purchased 43,057 shares under its Stock Repurchase Plan in 2024, with no purchases made in 2023[169]. - The Company relies on dividends from its banks for nearly all revenue, and any inability to receive these dividends could adversely affect financial obligations[123].

Net Income and Earnings - Net income for Q4 2024 was $3.5 million, or $0.39 per share, compared to $2.1 million, or $0.24 per share, in Q4 2023, driven by higher loan interest income and lower credit loss expense[2] - Net income for the year ended December 31, 2024, was $10.22 million, compared to $10.82 million in 2023, a decrease of 5.55%[32] - Basic and diluted earnings per share for the year ended December 31, 2024, were $1.14, compared to $1.20 in 2023, a decrease of 5.00%[32] - Forecasted earnings for 2025 are in the range of $1.72 to $1.82 per share, up from $1.14 per share in 2024, driven by an improved net interest margin[26] Loan and Interest Income - Loan interest income increased by $1.8 million in Q4 2024 compared to Q4 2023, primarily due to higher average interest rates and loan portfolio growth[6] - Net interest margin for Q4 2024 was 2.38%, up from 2.15% in Q4 2023, driven by increased loan volume and yield[6] - Net interest income for the year ended December 31, 2024, was $44.98 million, compared to $44.63 million in 2023, an increase of 0.78%[32] - Total interest and dividend income for the year ended December 31, 2024, was $82.61 million, compared to $74.30 million in 2023, an increase of 11.18%[32] - Total interest expense for the year ended December 31, 2024, was $37.63 million, compared to $29.68 million in 2023, an increase of 26.79%[32] Noninterest Income and Expense - Noninterest income for Q4 2024 totaled $2.6 million, a 15.0% increase from Q4 2023, primarily due to growth in wealth management income[8] - Total noninterest income for the year ended December 31, 2024, was $9.84 million, compared to $9.22 million in 2023, an increase of 6.75%[32] - Total noninterest expense for the year ended December 31, 2024, was $41.98 million, compared to $40.16 million in 2023, an increase of 4.53%[32] Assets and Liabilities - Total assets as of December 31, 2024, were $2.13 billion, a decrease of $22.3 million from December 31, 2023, mainly due to a decrease in securities available-for-sale[16] - Total assets decreased from $2,155.48 million in 2023 to $2,133.18 million in 2024, a decline of 1.03%[30] - Net loans increased to $1.30 billion as of December 31, 2024, up 2.0% from $1.28 billion in 2023, driven by growth in residential real estate and agricultural operating loan portfolios[18] - Loans receivable, net increased from $1,277.81 million in 2023 to $1,303.92 million in 2024, a growth of 2.04%[30] - Deposits totaled $1.85 billion as of December 31, 2024, a 1.9% increase from $1.81 billion in 2023, primarily due to growth in time deposits and public funds[20] - Total deposits increased from $1,811.83 million in 2023 to $1,846.68 million in 2024, a growth of 1.92%[30] Share Repurchase and Dividends - The company repurchased 43,057 shares of common stock in Q4 2024 at an average price of $16.35 per share, totaling $704 thousand[23] - The company declared a quarterly cash dividend of $0.20 per share, payable on February 14, 2025[25]

Company Analysis - Ames National Corporation's stock price has significantly declined due to the announcement of a dividend cut [1] - The company is expected to recover its earnings moving forward, which may stabilize the dividend policy [1] - No further dividend cuts are anticipated as earnings are projected to improve [1] Market Context - The article does not provide specific industry or market-related data or trends [1][2] Disclosure and Author Context - The author has no financial positions in Ames National Corporation or related companies [1] - The article reflects the author's personal opinions and is not influenced by any business relationships [1] - Seeking Alpha's disclosure emphasizes that past performance does not guarantee future results and no specific investment advice is provided [2]

Net Income and Earnings - Net income for Q3 2024 was $2.2 million, or $0.25 per share, compared to $2.9 million, or $0.33 per share, in Q3 2023, primarily due to increased credit loss expense and consultant fees[118] - Net interest income (GAAP) for Q3 2024 was $11.077 million, up from $10.689 million in Q3 2023, with a tax-equivalent adjustment of $128 thousand[125] - Net interest margin on an FTE basis (non-GAAP) for Q3 2024 was 2.21%, up from 2.11% in Q3 2023[125] - Net interest income for Q3 2024 increased to $11.1 million, up from $10.7 million in Q3 2023, with a net interest margin of 2.21% compared to 2.11% in the same period last year[133] - Net interest income for the nine months ended September 30, 2024 was $32.9 million, with a net interest margin of 2.16%, compared to $33.7 million and 2.21% in the same period last year[149] Credit Loss and Loan Performance - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, driven by loan growth and a specific reserve on a commercial loan[119] - Net loan charge-offs for Q3 2024 totaled $10 thousand, compared to net loan recoveries of $4 thousand in Q3 2023[119] - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, mainly due to increased specific reserves in the commercial loan portfolio[137] - Credit loss expense for the nine months ended September 30, 2024 was $722 thousand, a significant increase from $34 thousand in the same period in 2023, primarily due to loan growth and increased specific reserves[153] - Problem loans as a percentage of total loans increased to 1.33% as of September 30, 2024, up from 1.08% at the end of 2023, primarily due to downgrades in commercial real estate and operating loan portfolios[168] - Substandard-impaired loans increased by $3.7 million to $16.9 million as of September 30, 2024, driven by downgrades in commercial real estate and commercial operating loan portfolios[169] - Nonaccrual loans totaled $17.5 million as of September 30, 2024, compared to $13.8 million as of December 31, 2023[172] - Loans past due 30 days or more totaled $9.8 million as of September 30, 2024, compared to $4.3 million as of December 31, 2023[173] - Watch and special mention loans classified as agricultural real estate and operating totaled $27.5 million as of September 30, 2024, compared to $19.9 million as of December 31, 2023[174] - Watch and special mention loans classified as commercial real estate totaled $41.0 million as of September 30, 2024, compared to $73.3 million as of December 31, 2023[175] - The allowance for credit losses as a percentage of outstanding loans was 1.34% as of September 30, 2024, compared to 1.30% at December 31, 2023[176] Interest Income and Expense - Interest income for Q3 2024 rose by $2.0 million (10.4%) compared to Q3 2023, driven by higher average rates and loan portfolio growth[134] - Interest expense for Q3 2024 increased by $1.6 million (19.3%) compared to Q3 2023, primarily due to customers shifting to higher-rate deposit products[136] - For the nine months ended September 30, 2024, interest income increased by $6.9 million (12.7%) compared to the same period in 2023, driven by higher average rates and loan portfolio growth[150] - Interest expense for the nine months ended September 30, 2024 increased by $7.7 million (37.1%) compared to the same period in 2023, due to higher market interest rates and customer shifts to higher-rate deposit products[152] Noninterest Income and Expense - Noninterest income for Q3 2024 increased by 2.2% to $2.41 million compared to $2.36 million in Q3 2023[138] - Noninterest expense for Q3 2024 rose by 7.2% to $10.5 million compared to $9.8 million in Q3 2023, driven by higher salaries and benefits and consultant fees[139] - Noninterest income increased by 4.0% to $7.2 million for the nine months ended September 30, 2024, driven by higher wealth management income, partially offset by securities sale losses[154] - Noninterest expense rose by 4.3% to $31.4 million for the nine months ended September 30, 2024, mainly due to increased employee numbers, salary and benefit costs, and $799 thousand in consultant fees[155] Tax and Equity - Income tax expense for Q3 2024 was $397 thousand, with an effective tax rate of 15%, down from 17% in Q3 2023, due to tax-exempt interest income and New Markets Tax Credits[140] - Income tax expense decreased to $1.2 million for the nine months ended September 30, 2024, with an effective tax rate of 15%, down from 17% in 2023, due to tax-exempt interest income and New Markets Tax Credits[156] - The Company's total stockholders' equity as of September 30, 2024 totaled $183.4 million, an increase of $17.6 million from December 31, 2023[192] Loan and Investment Portfolio - Total loans (including fees) for Q3 2024 averaged $1.303 billion, with an average yield of 5.14%, up from $1.251 billion and 4.67% in Q3 2023[129] - Real estate loans for Q3 2024 averaged $1.074 billion, with an average yield of 4.75%, up from $1.049 billion and 4.34% in Q3 2023[129] - Investment securities for Q3 2024 averaged $687.362 million, with an average yield of 2.09%, up from $756.366 million and 2.03% in Q3 2023[129] - Interest-bearing deposits with banks and federal funds sold for Q3 2024 averaged $39.456 million, with an average yield of 5.02%, up from $42.382 million and 4.49% in Q3 2023[129] - The loan portfolio increased to $1.296 billion as of September 30, 2024, up from $1.278 billion at the end of 2023, driven by growth in residential real estate, multi-family real estate, and agricultural operating loans[165] - Commercial real estate and multi-family real estate represent approximately 42% of the loan portfolio as of September 30, 2024[178] - Total investments as of September 30, 2024 were $688.6 million compared to $736.4 million as of December 31, 2023[185] Deposits and Cash Flow - Deposits decreased to $1.80 billion as of September 30, 2024, from $1.81 billion at the end of 2023, due to lower balances in noninterest-bearing accounts, partially offset by increases in time deposits and public funds[166] - Net cash provided by operating activities for the nine months ended September 30, 2024 totaled $8.4 million compared to $12.8 million for the nine months ended September 30, 2023[186] - Net cash provided by investing activities for the nine months ended September 30, 2024 was $51.6 million compared to $38.8 million for the nine months ended September 30, 2023[187] Stock Repurchase and Controls - No shares were repurchased in July, August, or September 2024, with 100,000 shares remaining under the Stock Repurchase Plan as of September 30, 2024[197][199] - The company's disclosure controls and procedures were deemed effective as of the end of the reporting period[195] - There were no material changes in the company's internal control over financial reporting during the last fiscal quarter[196] - The company's risk factors remained unchanged from those disclosed in the Form 10-K filed on March 8, 2024[196] Asset and Liability Management - Total assets decreased by $32.3 million to $2.1 billion as of September 30, 2024, primarily due to a reduction in securities available-for-sale, partially offset by loan growth[158] - The investment portfolio decreased by $47.8 million to $688.6 million as of September 30, 2024, mainly due to maturities exceeding purchases and a decrease in unrealized losses[158]

Net Income and Earnings - Net income for Q3 2024 was $2.2 million, a decrease from $2.9 million in Q3 2023, primarily due to increased credit loss expense and consultant fees[2] - Net income for the three months ended September 2024 was $2.22 million, down from $2.92 million in the same period in 2023[24] - Basic and diluted earnings per share for the three months ended September 2024 were $0.25, down from $0.33 in the same period in 2023[24] Net Interest Income - Net interest income for Q3 2024 increased by $0.4 million (3.6%) to $11.1 million compared to Q3 2023, driven by higher loan interest income[7] - Net interest income for the three months ended September 2024 was $11.08 million, compared to $10.69 million in the same period in 2023[24] - Total interest and dividend income for the three months ended September 2024 was $20.71 million, up from $18.76 million in the same period in 2023[24] Credit Loss Expense - Credit loss expense for Q3 2024 was $371 thousand, compared to a credit loss benefit of $274 thousand in Q3 2023, mainly due to increased specific reserves in the commercial loan portfolio[8] Noninterest Income and Expense - Noninterest income for Q3 2024 increased by 2.2% to $2.41 million compared to Q3 2023, driven by higher wealth management income[8] - Total noninterest income for the three months ended September 2024 was $2.41 million, compared to $2.36 million in the same period in 2023[24] - Total noninterest expense for the three months ended September 2024 was $10.51 million, up from $9.80 million in the same period in 2023[24] - The efficiency ratio for Q3 2024 was 77.87%, compared to 75.12% in Q3 2023, reflecting higher noninterest expenses[8] Total Assets and Loans - Total assets as of September 30, 2024, decreased by $30.9 million to $2.1 billion compared to September 30, 2023, primarily due to a decrease in interest-bearing deposits and securities available-for-sale[13] - Net loans increased by 5.2% to $1.30 billion as of September 30, 2024, compared to $1.23 billion in 2023, driven by growth in agriculture, residential, and commercial real estate loan portfolios[14] - Total assets decreased to $2,123.17 million in September 2024 from $2,154.05 million in September 2023[22] - Loans receivable, net increased to $1,295.77 million in September 2024 from $1,231.89 million in September 2023[22] Deposits - Deposits decreased by 1.5% to $1.80 billion as of September 30, 2024, compared to $1.83 billion in 2023, due to customers shifting to higher-rate deposit products[16] - Total deposits decreased to $1,801.72 million in September 2024 from $1,828.68 million in September 2023[22] Stockholders' Equity and Dividends - Stockholders' equity increased by $36.8 million to $183.4 million as of September 30, 2024, primarily due to a decrease in unrealized losses on the investment portfolio[17] - The company declared a quarterly cash dividend of $0.20 per share, payable on November 15, 2024[18] - Dividends declared per share for the three months ended September 2024 were $0.20, compared to $0.27 in the same period in 2023[24]