Ames National Corporation reported its financial results for the third quarter of 2024, highlighting a mixed performance compared to the same period in 2023. The company recorded net income of $2.2 million, or $0.25 per share, down from $2.9 million, or $0.33 per share, in Q3 2023. This decline in earnings was attributed to increased credit loss expenses due to loan growth and specific reserves on a commercial loan, as well as consultant fees related to long-term vendor contracts.

For the three months ended September 30, 2024, interest and dividend income rose to $20.7 million, a 10.4% increase from $18.8 million in Q3 2023. This growth was driven by higher average interest rates and an expanding loan portfolio. However, total interest expense also increased significantly, reaching $9.6 million, up from $8.1 million in the prior year, reflecting the impact of rising market interest rates.

Net interest income for the third quarter was $11.1 million, slightly higher than $10.7 million in Q3 2023. The net interest margin improved to 2.21%, compared to 2.11% in the same quarter last year. For the nine months ended September 30, 2024, net interest income totaled $32.9 million, down from $33.7 million in 2023.

Total noninterest income for Q3 2024 was $2.4 million, a modest increase from $2.36 million in Q3 2023. Conversely, noninterest expenses rose to $10.5 million, up from $9.8 million, primarily due to increased employee costs and consultant fees. The efficiency ratio for the quarter was 77.87%, compared to 75.12% in the previous year.

As of September 30, 2024, total assets were $2.1 billion, a decrease of $32.3 million from December 31, 2023. Total deposits also declined to $1.80 billion from $1.81 billion, attributed to lower balances in retail and commercial noninterest-bearing accounts, although this was partially offset by increases in time deposits and public funds. The loan portfolio increased to $1.296 billion, driven by growth in residential and agricultural loans.

The company’s total stockholders' equity rose to $183.4 million, up from $165.8 million at the end of 2023, reflecting a stronger capital position. The allowance for credit losses increased to $17.6 million, representing 1.34% of outstanding loans, up from 1.30% at year-end 2023. The company continues to maintain capital levels that exceed regulatory requirements, ensuring it remains well-capitalized.