Ames National (ATLO) - 2024 Q1 - Quarterly Report

Net Income and Earnings - Net income for Q1 2024 was $2.3 million, or$0.26 per share, compared to $3.2 million, or$0.36 per share, in Q1 2023, primarily due to higher interest expenses on deposits[129] Loan Performance and Credit Losses - Net loan recoveries totaled $4 thousand in Q1 2024, compared to net loan charge-offs of$158 thousand in Q1 2023[129] - Credit loss expense for Q1 2024 was $169 thousand, down from$275 thousand in Q1 2023[129] - Credit loss expense decreased to $169 thousand in Q1 2024 from$275 thousand in Q1 2023, with net loan recoveries of $4 thousand compared to net loan charge-offs of$158 thousand[147] - Problem loans as a percentage of total loans decreased to 1.03% as of March 31, 2024, from 1.08% as of December 31, 2023[163] - Substandard-impaired loans decreased to $12.6 million as of March 31, 2024, from$13.2 million as of December 31, 2023[164] - Nonaccrual loans totaled $13.2 million as of March 31, 2024, down from$13.8 million as of December 31, 2023[167] - The allowance for credit losses as a percentage of outstanding loans increased to 1.31% as of March 31, 2024, from 1.30% as of December 31, 2023[170] Net Interest Income and Margin - Net interest income (GAAP) for Q1 2024 was $10.9 million, compared to$11.7 million in Q1 2023[136] - Net interest margin on an FTE basis (non-GAAP) for Q1 2024 was 2.13%, down from 2.32% in Q1 2023[136] - Net interest margin adjusted for tax-exempt income was 2.13% in Q1 2024, down from 2.32% in Q1 2023[144] Loan Portfolio and Interest Income - Total loans (including fees) averaged $1.28 billion in Q1 2024, with an average yield of 4.93$1.22 billion and 4.28% in Q1 2023[140] - Interest income on loans increased to $15.8 million in Q1 2024, up from$13.1 million in Q1 2023, driven by higher rates and loan portfolio growth[129] - Interest income increased by $2.9 million (17$1.273 billion as of March 31, 2024, primarily due to reduced commercial real estate loan demand[160] Interest Expense and Deposits - Interest expense on deposits and other borrowings increased in Q1 2024 due to higher market rates and customer demand for higher interest rate options[129] - Interest expense increased by $3.7 million (67$1.467 billion in Q1 2024 from $1.491 billion in Q1 2023, with a total interest-bearing liabilities increase to$1.623 billion from $1.576 billion[143] - Deposits increased to$1.87 billion as of March 31, 2024, up from $1.81 billion as of December 31, 2023, driven by higher yielding accounts[161] - Estimated uninsured deposits were$637 million as of March 31, 2024, with $153 million collateralized by pledged assets[161] - Other borrowings decreased to$90.3 million as of March 31, 2024, from $110.6 million as of December 31, 2023, due to increased deposits[162] Noninterest Income and Expense - Noninterest income decreased by 3$2.2 million in Q1 2024, primarily due to losses on the sale of securities[148] - Noninterest expense increased by 4% to $10.2 million in Q1 2024, driven by higher FDIC assessments and salary/benefit increases[148] Asset and Liability Management - Total interest-earning assets averaged$2.07 billion in Q1 2024, with an average yield of 3.91%, up from $2.04 billion and 3.40$36.4 million to $2.19 billion as of March 31, 2024, primarily due to growth in interest-bearing deposits and federal funds sold[151] - The investment portfolio decreased by$13.2 million to $723.2 million as of March 31, 2024, mainly due to maturities of investments[151] Cash Flow and Equity - Net cash provided by operating activities for Q1 2024 was$1.4 million, down from $6.5 million in Q1 2023[176] - Total stockholders' equity decreased to$165.5 million as of March 31, 2024, from $165.8 million as of December 31, 2023[181] Regulatory and Capital Compliance - The company's capital levels exceed regulatory guidelines to be considered "well capitalized" as of March 31, 2024[181] - No material changes in risk factors disclosed in the Company's Form 10-K filed with the SEC on March 8, 2024[187] - Maximum number of shares that may yet be purchased under the plan remains at 100,000 for January, February, and March 2024[189] - Company's disclosure controls and procedures are effective as of the end of the period covered by the report[185] - No change in the Company's internal control over financial reporting during the last fiscal quarter[186]