Ames National (US:ATLO)2025-05-09 16:01Financial 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].