Ames National Reports 86% Net Income Surge, Strong Profitability in 2025 Annual Report
ATLO sits 66% above its 52-week low of $16.091.
Summary
Ames National Corp reported a significant increase in net income and improved profitability for 2025, driven by higher net interest income and reduced cost of funds, despite a dividend cut and a slight rise in non-performing assets.
Key Events · Earnings and Guidance · ATLO
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Net Income and EPS Nearly Double
Net income surged by 86.2% to $19.0 million in 2025 from $10.2 million in 2024, with basic and diluted earnings per share increasing to $2.14 from $1.14.
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Profitability Ratios Show Strong Improvement
Return on average assets (ROA) improved to 0.90% in 2025 from 0.48% in 2024, and return on average equity (ROE) rose to 9.95% from 6.02%.
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Net Interest Margin Expands
The net interest margin (FTE basis) increased to 2.75% in 2025 from 2.22% in 2024, driven by higher yields on loans and investments and lower cost of funds.
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Dividend Per Share Decreased
Annual cash dividends declared decreased to $0.60 per share in 2025 from $0.94 per share in 2024, despite the strong earnings performance.
Analysis · ATLO · Finance
Ames National Corp's 2025 annual report reveals a substantial improvement in financial performance, with net income nearly doubling year-over-year. This strong earnings growth is supported by significantly improved profitability ratios, including return on assets, return on equity, and net interest margin. While the company saw a decrease in its annual dividend per share and a slight increase in non-performing assets, its capital position remains robust, and unrealized losses on its investment portfolio have significantly decreased. The increase in substandard loans in multi-family and agricultural portfolios warrants continued monitoring, but management has obtained a waiver for a loan covenant non-compliance, mitigating immediate risk.
At the time of this filing, ATLO was trading at $26.64 on NASDAQ in the Finance sector, with a market capitalization of approximately $236.9M. The 52-week trading range was $16.09 to $28.35. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.