Ames National reported net income of $5.9 million, or $0.67 per share, for the second quarter of 2026, up from $4.5 million, or $0.51 per share, in Q2 2025. For the six months ended June 30, 2026 the company posted net income of $11.9 million, or $1.34 per share, versus $7.95 million, or $0.89 per share, a year earlier. Management cited higher net interest income driven by improved yields on investments and loans, lower cost of funds and reduced borrowings as primary contributors to the earnings improvement.

Financial Highlights

  • Net income (Q2 2026): $5,931,000; Q2 2025: $4,511,000.
  • Earnings per share - basic and diluted (Q2 2026): $0.67; Q2 2025: $0.51. Six months ended June 30, 2026 EPS: $1.34; six months 2025: $0.89.
  • Net interest income (Q2 2026): $16,382,000; Q2 2025: $13,466,000. Six months ended June 30, 2026: $31,813,000; six months 2025: $26,381,000.
  • Net interest margin (tax-equivalent, FTE) (Q2 2026): 3.18%; Q2 2025: 2.65%. Six months ended June 30, 2026: 3.10%; six months 2025: 2.59%.
  • Total assets (June 30, 2026): $2,122,898,000; Total deposits: $1,852,567,000; Stockholders' equity: $213,093,000; Capital ratio: 10.04%.

Business Highlights

  • Improved net interest income driven by higher yields and average balances on investment securities and loans, and a lower cost of funds due to declining market rates and reduced borrowings.
  • Investment portfolio growth: securities available-for-sale increased to $695 million from $645 million year-over-year; portfolio duration ~3.2 years with roughly $102 million maturing within one year at ~1.8% yield.
  • Loan portfolio: net loans decreased 2.2% year-over-year to $1.25 billion, reflecting payoffs in commercial real estate partly offset by growth in 1–4 family residential real estate.
  • Asset-quality trends: substandard loans increased to $50.7 million (from $23.5 million) largely due to one large 1–4 family residential relationship and weakness in multi-family; substandard-impaired loans modestly increased to $19.1 million.
  • Liquidity and funding actions: other borrowings reduced to $16.5 million (from $30.7 million a year earlier) and securities sold under agreements to repurchase decreased to $30.9 million, reflecting use of maturing investments to reduce borrowings.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.