Ames National (US:ATLO)2026-01-23 21:07Financial Performance - Net income for Q4 2025 was $6.5 million, or $0.73 per share, up from $3.5 million, or $0.39 per share in Q4 2024, representing an increase of 85.7%[2] - For the year ended December 31, 2025, net income totaled $19.0 million, or $2.14 per share, compared to $10.2 million, or $1.14 per share in 2024, an increase of 86.3%[2] - Net income for the year ended December 31, 2025, was $19,027 thousand, a significant increase of 86.5% from $10,218 thousand in 2024[33] - The company reported a basic and diluted earnings per share of $2.14 for the year ended December 31, 2025, compared to $1.14 in 2024, marking an increase of 88.6%[33] Income Sources - Net interest income for Q4 2025 increased by $3.1 million, or 25.7%, totaling $15.2 million compared to the same quarter in 2024[6] - Noninterest income for Q4 2025 was $3.4 million, a 31.2% increase from $2.6 million in Q4 2024, driven by growth in wealth management income[8] - Net interest income after credit loss expense for the year ended December 31, 2025, was $54,625 thousand, up from $44,384 thousand in 2024, representing a growth of 23.1%[33] - Interest and dividend income for the year ended December 31, 2025, totaled $87,093 thousand, an increase of 5.9% from $82,607 thousand in 2024[33] - Noninterest income for the year ended December 31, 2025, was $11,170 thousand, up from $9,848 thousand in 2024, reflecting a growth of 13.4%[33] Assets and Deposits - Total assets as of December 31, 2025, were $2.13 billion, a slight increase of $360 thousand from $2.13 billion in 2024[17] - Deposits increased to $1.855 billion as of December 31, 2025, a 0.4% rise from $1.847 billion in 2024[21] - Total deposits rose to $1,854,667 thousand in 2025, compared to $1,846,682 thousand in 2024, indicating a slight increase of 0.97%[31] - Total assets increased to $2,133,540 thousand as of December 31, 2025, compared to $2,133,180 thousand in 2024, reflecting a growth of 0.02%[31] Equity and Liabilities - The stockholders' equity increased to $207.9 million as of December 31, 2025, from $174.7 million in 2024, representing a growth of 19.0%[23] - Total interest-bearing liabilities decreased from $1,592,844 thousand in 2024 to $1,563,950 thousand in 2025, reflecting a reduction of approximately 1.8%[40] - Stockholders' equity increased from $179,319 thousand in 2024 to $204,047 thousand in 2025, showing a growth of about 13.8%[40] Efficiency and Forecast - The efficiency ratio improved to 59.22% in Q4 2025 from 71.47% in Q4 2024, reflecting better cost management[9] - The company forecasts earnings for the year ending December 31, 2026, in the range of $2.70 to $2.80 per share, an increase from $2.14 per share in 2025[27] Credit Quality - The allowance for credit losses increased to $17.7 million, or 1.36% of loans, compared to $17.1 million, or 1.29% of loans in 2024[20] - The company’s credit loss expense for the year ended December 31, 2025, was $1,037 thousand, compared to a benefit of $592 thousand in 2024, indicating a shift in credit quality assessment[33] Interest Metrics - The average yield on interest-earning assets increased to 4.45% in 2025 from 4.16% in 2024[36] - The net interest margin (FTE) improved to 3.00% in Q4 2025 compared to 2.38% in Q4 2024, indicating a significant enhancement in profitability[43] - The net interest spread (FTE) improved from 1.87% in 2024 to 2.56% in 2025, indicating a positive trend in interest income generation[40] Deposit Composition - Average interest-earning assets remained relatively stable, with a slight decrease from $2,054,581 thousand in 2024 to $2,043,152 thousand in 2025[42] - Noninterest-bearing checking accounts decreased from $342,063 thousand in 2024 to $328,309 thousand in 2025, a decline of approximately 4.0%[40] - The average yield on interest-bearing checking, savings accounts, and money markets decreased from 1.58% in 2024 to 1.32% in 2025[40] - Time deposits saw a decline in average yield from 4.23% in 2024 to 3.67% in 2025, reflecting a decrease of approximately 13.2%[40]