10-Q · May 8, 2026
Ames National Corporation reported a strong Q1 2026 performance, with revenue of $18.216 million and EPS at $0.67, both surpassing consensus estimates. The company reported increased net interest income and improvements…
Earnings analysis · 10-Q
ATLO earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Ames National delivered strong Q2 earnings growth, with diluted EPS rising to $0.67 from $0.51 and net interest margin expanding 53 basis points to 3.18%. Operating cash flow improved and capital and liquidity remain…
Read full summary
Ames National delivered strong Q2 earnings growth, with diluted EPS rising to $0.67 from $0.51 and net interest margin expanding 53 basis points to 3.18%. Operating cash flow improved and capital and liquidity remain substantial, although cash declined by $19.509 million and loan balances contracted. The main offset is worsening credit quality, including higher nonaccrual, past-due and substandard-impaired loans and a waived Texas Ratio covenant breach. No numeric forward revenue or EPS guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.67
- Segment
- Single aggregated banking segment: total interest and dividend income was $23.278 million for Q2 2026. No separate segment revenue figures were reported.
What stood out
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Earnings and net interest income accelerated
Q2 net income increased to $5.931 million from $4.511 million in Q2 2025, while diluted EPS rose to $0.67 from $0.51. Net interest income increased to $16.382 million from $13.466 million, driven by higher investment yields and balances and lower funding costs.
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Material margin expansion
The fully taxable-equivalent net interest margin expanded to 3.18% from 2.65%, a 53-basis-point improvement. Interest expense declined 14.0% to $6.896 million, while interest and dividend income increased 8.4% to $23.278 million.
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Operating cash flow remained positive
Six-month net cash provided by operating activities was $11.797 million versus $11.131 million in the prior-year period. Capital expenditures were $678 thousand, consisting of purchases of premises and equipment; free cash flow was not disclosed.
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Liquidity supported by securities portfolio
The investment portfolio increased to $695.251 million from $655.954 million at December 31, 2025, primarily from purchases exceeding maturities. Management reported $401.6 million of unpledged securities available-for-sale and interest-bearing deposits.
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Fee income and efficiency improved
Noninterest income increased 5.8% to $5.487 million for the six months, primarily from higher wealth management income and estate and trust fees. The six-month efficiency ratio improved to 59.09% from 65.34%.
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Capital remains well above minimums
Consolidated total capital to risk-weighted assets was 16.7% and Tier 1 capital to average assets was 10.3% at June 30, 2026, above the applicable well-capitalized thresholds of 10.50% and 5.00%, respectively.
What to watch
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Asset-quality deterioration accelerated
Problem loans increased to 1.55% of total loans from 1.19% at December 31, 2025, versus an Iowa State peer average of 0.60%. Nonaccrual loans rose to $19.606 million from $15.133 million, and loans past due 30 days or more increased to $22.475 million from $7.271 million.
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Agricultural credit risk increased
Substandard-impaired loans increased to $19.132 million from $14.620 million, primarily due to one agricultural relationship. Agricultural 90-days-or-more past-due loans increased to $5.348 million from $1.036 million.
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Texas Ratio covenant breach
The modified Texas Ratio was 29.2% at June 30, 2026 versus a covenant threshold of 25%; the lender waived the resulting noncompliance. The threshold had been amended from 20% to 25% effective June 30, 2026.
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Large unrealized securities losses
The securities portfolio carried $27.917 million of gross unrealized losses, including $25.263 million on securities held in a loss position for 12 months or more. Management attributed the losses primarily to higher interest rates, but further market or credit deterioration could affect capital or earnings.
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Consulting and personnel costs remain elevated
Noninterest expense increased 7.8% to $11.168 million in Q2, including $300 thousand of consultant fees. Management expects the consultant fees to continue throughout 2026 while contract negotiations remain in process.
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Cash balance and funding declined
Net cash and cash equivalents declined to $107.244 million from $126.753 million at December 31, 2025, while six-month financing cash usage was $19.152 million, including $4.251 million of dividends and $7.901 million of repurchase-agreement repayments.
Management's outlook
No numeric revenue or EPS guidance was provided. Management said $300,000 of Q2 consultant fees are expected to continue throughout 2026 while contract negotiations remain in process. Management also stated that liquidity sources are expected to be sufficient for existing operations for the foreseeable future.
Earlier filings 4
10-K · March 12, 2026
Ames National (ATLO) is a multi-bank community banking holding company concentrated in central and south-central Iowa that delivered improved profitability in 2025 driven by higher margins, higher net income at core…
10-Q · November 7, 2025
Ames National reported quarter revenue of $24,387,000 and net income of $4,559,000 for the three months ended September 30, 2025, driving diluted EPS of $0.51 (vs. $0.25 in Q3 2024). Revenue rose modestly year-over-year…
10-K · March 8, 2024
Ames National Corporation operates six community banks concentrated in central and south-central Iowa and generates most revenue from net interest income on loans and investments. The 10-K shows growth in assets under…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.