Ames National (US:ATLO)2025-11-07 18:31Financial Performance - The Company reported net income of $4.6 million, or $0.51 per share, for Q3 2025, compared to $2.2 million, or $0.25 per share, for Q3 2024, representing a 109% increase in net income year-over-year[106] - For the nine months ended September 30, 2025, net income totaled $12.5 million, or $1.41 per share, compared to $6.7 million, or $0.75 per share, for the same period in 2024, indicating an increase of 86%[106] - Noninterest income for the nine months ended September 30, 2025 totaled $7.7 million, an increase of 7.1% compared to $7.2 million for the same period in 2024[138] - Noninterest expense for the nine months ended September 30, 2025 was $30.9 million, a decrease of 1.8% from $31.4 million in 2024[139] - The efficiency ratio improved to 64.10% for the nine months ended September 30, 2025, compared to 78.47% for the same period in 2024[139] Interest Income and Expenses - Net interest income for Q3 2025 was $14.0 million, up from $11.1 million in Q3 2024, reflecting a 26% increase driven by higher yields on loans and investments[120] - Interest income increased by $1.1 million, or 5.5%, in Q3 2025 compared to Q3 2024, primarily due to improved yields[121] - Interest expense decreased by $1.8 million, or 19.0%, in Q3 2025 compared to the same period in 2024, attributed to reduced borrowings and lower market rates[121] - Interest income increased by $3.1 million, or 5.0%, for the nine months ended September 30, 2025, primarily due to improved yield in the loan portfolio[134] - Interest expense decreased by $4.5 million, or 15.7%, for the nine months ended September 30, 2025, mainly due to reduced borrowings and lower market rates[135] Asset and Liability Management - The Company’s total interest-earning assets for Q3 2025 were $2,001,002 thousand, with total interest-bearing liabilities at $1,548,232 thousand[116][119] - Total assets as of September 30, 2025 were $2.1 billion, a decrease of $25.2 million from December 31, 2024[142] - The loan portfolio totaled $1.28 billion as of September 30, 2025, down from $1.30 billion at December 31, 2024[145] - Deposits decreased to $1.83 billion as of September 30, 2025, from $1.85 billion at December 31, 2024, primarily due to a decrease in noninterest-bearing checking accounts[146] - Total investments as of September 30, 2025, were $650.7 million, slightly up from $648.5 million as of December 31, 2024[166] Credit Quality - A credit loss expense of $627 thousand was recognized for Q3 2025, compared to $371 thousand for Q3 2024, reflecting an increase in specific reserves[122] - Credit loss expense recognized for the nine months ended September 30, 2025 was $1.7 million, compared to $722 thousand in 2024[137] - As of September 30, 2025, nonaccrual loans totaled $19.3 million, an increase from $14.8 million as of December 31, 2024[153] - Loans past due 30 days or more increased to $10.3 million as of September 30, 2025, compared to $6.9 million as of December 31, 2024[154] - The allowance for credit losses as a percentage of outstanding loans was 1.39% as of September 30, 2025, up from 1.29% at December 31, 2024, with total allowance increasing to $18.0 million[157] Liquidity and Capital - Liquidity sources included $108.2 million in liquid assets as of September 30, 2025, compared to $101.2 million as of December 31, 2024[164] - The Company's total stockholders' equity as of September 30, 2025, was $200.6 million, an increase of $25.9 million from $174.7 million as of December 31, 2024[173] - Dividends paid by the Banks to the Company amounted to $9.7 million for the nine months ended September 30, 2025, compared to $7.9 million for the same period in 2024[171] Operational Insights - The Company employs 27 individuals for corporate functions, in addition to 231 full-time equivalent employees at its bank subsidiaries[103] - The average yield on loans for Q3 2025 was 5.39%, compared to 5.14% in Q3 2024, indicating improved loan performance[116] - Net cash provided by operating activities for the nine months ended September 30, 2025, totaled $13.9 million, an increase of $5.5 million from $8.4 million for the same period in 2024[167] Regulatory and Compliance - The Company has concluded that its disclosure controls and procedures are effective for ensuring timely and accurate reporting as required by the SEC[177] - There were no material changes in the Company's internal control over financial reporting during the last fiscal quarter[178] - Management does not believe there have been any material changes in the risk factors disclosed in the Company's Form 10-K filed on March 12, 2025[179]