ATLONasdaqNational Commercial BanksUS GAAP · USD

Ames National Corporation

Ames National Corporation is an Iowa-based bank holding company that owns six community bank subsidiaries operating primarily in central, north-central, and south-central Iowa. The company’s business is traditional relationship banking—gathering deposits and deploying them into commercial, agricultural, and consumer loans—supplemented by fee income from deposit services, card/merchant services, and wealth management activities at banks with trust powers. Management emphasizes local decision-making authority and experienced bank leadership to deliver faster credit responses and tailored terms for small-to-medium sized businesses. The parent company itself has no material operations beyond owning the banks and managing its own loan portfolios.

Revenue66.8m USD
+21.9 %y/y
Net income19.0m USD
+86.2 %y/y
Free cash flow20.7m USD
+47.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

020406080m USD2020: 65 m USD20202021: 67 m USD20212022: 63 m USD20222023: 54 m USD20232024: 55 m USD20242025: 67 m USD202567
RevenueOperating profit (EBIT)

Business

Share of revenue
Net interest income (loans and securities)78 %

Interest income from commercial, agricultural and consumer loans plus fixed-income investments, net of deposit/borrowing costs.

Deposit and payment service fees10 %

Service charges on deposit accounts and fees from merchant and card programs.

Wealth management and trust fees7 %

Financial planning and administration of trust, agency, estate and brokerage accounts at banks with trust powers.

Loan sale and other noninterest income5 %

Gains on sale of loans and other ancillary banking income streams.

Customers

Customers are primarily individuals, families, farms, and small-to-medium sized businesses located in the Iowa communities where the subsidiary banks operate. The banks target business owners who prefer an exclusive primary banking relationship and value local credit decisions, faster response times, and relationship continuity. On the retail side, households use the banks for core deposit accounts and consumer borrowing, while local professionals and retirees may use trust and wealth management services where available. Agricultural customers are important in certain markets (e.g., around Creston), tying loan demand and credit performance to farm economics and commodity cycles. Public-sector exposure is more visible on the investment side through municipal securities holdings rather than as a core “customer” revenue line.

Small-to-medium sized businesses (SMB)

Use commercial loans, treasury/deposit accounts, and relationship banking for local decisioning and flexibility.

Retail/consumer households

Maintain checking/savings/CDs and borrow via consumer and residential lending for everyday banking needs.

Agriculture and rural communities

Borrow for agricultural operations and equipment/land needs; deposit relationships often tied to farm cash flows.

Wealth management and trust clients

Purchase financial planning and fiduciary services (trusts, estates, agencies) and brokerage account management.

Strategy

The company’s strategy centers on relationship banking delivered through local management teams and local decision-making authority at each subsidiary bank. This operating model is intended to improve customer responsiveness and flexibility in structuring loans and deposit solutions, particularly for small-to-medium sized businesses. Management also emphasizes operational efficiency to support profitability while remaining competitive on loan and deposit pricing. Balance-sheet management—especially managing the spread between earning-asset yields and funding costs while controlling interest-rate risk—remains a core strategic discipline given the reliance on net interest income. The company also retains optionality to pursue acquisitions, while acknowledging integration and execution risks.

Local decisioning and relationship banking for SMBsLong term

Differentiates community banks versus larger institutions on speed and flexibility.

Operational efficiency to support competitive pricingMedium term

Efficiency helps protect profitability while offering competitive loan/deposit rates.

Balance-sheet spread and interest-rate risk managementShort term

Net interest income is the largest earnings driver; rate moves affect both asset yields and deposit costs.

Geography

Operations are concentrated in Iowa, with banking offices serving communities including Ames, the Greater Des Moines area (e.g., Ankeny and West Des Moines), Osceola and surrounding south-central markets, and Creston/Lenox. This geographic focus makes performance closely linked to local economic conditions, particularly agriculture and small-business activity in central and south-central Iowa. While the customer franchise is Iowa-based, the investment securities portfolio includes municipal securities issued across multiple U.S. states, reducing single-issuer concentration but adding broader municipal credit exposure. The company disclosed that its municipal securities included issuers across 30 states, with no single municipality representing a concentration as of mid-2025. Overall, the footprint is intentionally community-bank oriented rather than a multi-state retail expansion model.

Risks

Because operations are concentrated in Iowa, local economic weakness—especially in agriculture-dependent areas—can reduce loan demand and increase credit losses. As a deposit-funded lender, the company is exposed to interest-rate risk and funding competition that can compress net interest margins when deposit costs reprice faster than asset yields. Cybersecurity and information security risks are elevated due to the sensitive customer data handled by the banks and reliance on third-party vendors; breaches can trigger regulatory penalties, remediation costs, and reputational damage. The company also faces regulatory and compliance risk typical for banks, where changes in supervisory expectations can increase costs or constrain growth. Finally, acquisition activity (past or future) introduces integration, customer retention, and goodwill/intangible impairment risk if expected performance does not materialize.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Geographic concentration in Iowa1Cybersecurity and information security breaches2Reputational damage3Acquisition execution and integration risk4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Geographic concentration in IowaImpact: HighLikelihood: High

    Local economic deterioration (including agriculture) can weaken loan demand and asset quality.

    ExposureCentralNorth-centralSouth-central Iowa counties
  2. Cybersecurity and information security breachesImpact: HighLikelihood: Medium

    Banks store sensitive PII; breaches can lead to service disruption, losses, penalties, and reputational damage.

    Exposure: Internal systems and third-party service providers

  3. Reputational damageImpact: MediumLikelihood: Medium

    Service failures, compliance issues, litigation, or security events can reduce customer trust and increase scrutiny.

  4. Acquisition execution and integration riskImpact: MediumLikelihood: Low

    Acquisitions can underperform, create unexpected liabilities, and distract management; may also trigger goodwill issues.

Accounting

Judgemental items
Allowance for credit losses (CECL/ACL) on loans

Expected-loss estimates depend on economic assumptions and portfolio performance; changes flow through earnings.

Impact: Can materially change provision expense and net income across periods

Fair value of available-for-sale investment securities

Market rate movements change fair values and unrealized gains/losses recognized in OCI.

Impact: Affects equity/OCI and can influence capital and interest-rate risk perception

Goodwill and intangible asset impairment testing

Acquisition-related goodwill must be tested at least annually and can be impaired if fair value declines.

Impact: Potentially significant non-cash impairment charges

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026