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Ames National is a local community bank for central Iowa, much like a hyper-focused, smaller version of a major regional bank such as PNC.

Think of it as the hometown bank for communities in central and north central Iowa, similar to a very localized and traditional version of U.S. Bancorp.

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• Deposit Services: Offering a range of checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Lending Services: Providing commercial, agricultural, real estate (residential and commercial), and consumer loans.
• Wealth Management & Trust Services: Delivering financial planning, investment management, and trust administration services.
• Digital Banking: Offering convenient online and mobile banking platforms for account management and transactions.

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Ames National (ATLO) Major Customers

Ames National Corporation (ATLO) is a bank holding company. Its primary subsidiary, First National Bank, operates in central Iowa, providing a range of financial services.

As a regional bank, Ames National does not have a few "major customers" in the traditional sense that would be publicly disclosed. Instead, it serves a broad and diversified base of individuals and businesses within its operating market. Given the nature of its business, it primarily sells financial products and services directly to end-users (individuals and businesses), rather than to other companies for resale.

Therefore, its customer base can be categorized as follows:

• Individual Consumers: Residents of the communities it serves who utilize personal banking services such as checking accounts, savings accounts, certificates of deposit, mortgages, auto loans, and other consumer loans.
• Small to Medium-sized Businesses: Local and regional enterprises that rely on the bank for business checking and savings accounts, commercial loans, lines of credit, commercial real estate financing, and treasury management services.
• Agricultural Clients: Farmers and agribusinesses within its Iowa market, seeking specialized agricultural loans for land, equipment, operating expenses, and other financial services tailored to the agricultural sector.

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The key risks to Ames National (ATLO) are primarily associated with its operations as a regional bank in the current economic environment. These include:

1. Interest Rate Risk and Net Interest Margin Compression: Ames National's profitability is heavily reliant on net interest income, which is the difference between interest earned on assets (like loans and investments) and interest paid on liabilities (like deposits). The company has experienced periods where higher interest expenses on deposits and borrowings have outpaced the increase in interest income from assets, leading to a compression of its net interest margin and a decline in net income. This sensitivity to interest rate fluctuations is a significant and ongoing challenge.
2. Volatile Earnings and Dividend Sustainability: The company has demonstrated mixed financial performance with volatile earnings over the past several years, including periods of declining earnings per share. This inconsistency in earnings growth raises concerns about the long-term sustainability of its dividend, despite an attractive yield, and can make the stock a risky income play for investors.
3. Limited Growth Prospects and Regional Banking Pressures: Ames National is a small regional bank with operations exclusively in Iowa. Its business model is based on long-term customer relationships, but its growth prospects are considered muted. As a regional bank, it is susceptible to economic conditions within its operating area and broader competitive pressures within the regional banking sector, which can limit its ability to expand and increase its market share significantly.

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The increasing competition from digital-only banks and fintech companies poses a clear emerging threat. These digital-first entities leverage technology to offer convenient, often lower-cost banking services with competitive interest rates, directly challenging the traditional branch-based community banking model. This trend has the potential to erode Ames National's customer base, particularly among younger demographics, and pressure its net interest margin and profitability.

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Ames National Corporation (ATLO) operates as a multi-bank holding company primarily focused on community banking services within central Iowa, specifically across Boone, Clarke, Hancock, Marshall, Polk, Story, Taylor, and Union Counties. Its main products and services include traditional banking activities such as personal, business, agricultural, and commercial lending, as well as deposit account services like checking, savings, money market accounts, and certificates of deposit. The company also offers wealth management services.

The addressable market for community banking services in the U.S. was valued at approximately $6.35 billion in 2024, with projections indicating growth to $19.39 billion in 2025 and $26.98 billion by 2029. North America held a dominant market position in the global community banking market in 2024, capturing over a 40% share.

More specifically for Ames National's operating region, the total assets for all Iowa banks exceeded $127 billion at the end of 2024 and stood at approximately $129 billion in the second quarter of 2025. Total loans provided by Iowa-domiciled banks were nearly $88 billion in 2024 and $89.4 billion in the second quarter of 2025. Total deposits in Iowa banks reached $107 billion in 2024 and $107.5 billion in the second quarter of 2025. Ames National Corporation itself managed over $2.1 billion in total assets as of December 31, 2024.

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• Net Interest Margin Expansion: Ames National has demonstrated an improvement in its net interest margin, rising to 2.83% in the third quarter of 2025 from 2.21% in the third quarter of 2024. This growth is primarily attributed to an improved yield on its loan portfolio, the reinvestment of maturing investments at higher rates, and a decrease in deposit interest expenses due to prevailing market rates. The reduction in other borrowed funds interest expense further contributes to this margin expansion.
• Loan Portfolio Growth: The company has experienced growth in its loan interest income, driven by higher average interest rates and an expansion of its loan portfolio. As of the end of 2024, the loan book had grown by 2% year-over-year, with a significant focus on commercial, residential mortgage, and agricultural loans. Continued growth in these lending areas is expected to be a revenue driver.
• Growth in Wealth Management Services: Noninterest income has seen an increase, notably from wealth management, due to the growth in assets under management and the establishment of new client relationships. This indicates an expanding presence and increased revenue generation from these fee-based services.
• Strategic Initiatives and Technology Investments: While not directly quantified as forward guidance, analysts and company overview suggest that strategic acquisitions and technology investments are vital for accelerating growth, gaining access to new markets, and enhancing customer bases. These initiatives are expected to support future revenue generation by expanding the company's operational capabilities and market reach.

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Share Repurchases

• Ames National Corporation authorized a new stock repurchase program on August 13, 2025, allowing for the repurchase of up to 200,000 shares, approximately 2.2% of its outstanding common stock. This program is set to expire on November 17, 2026.
• Under a previous repurchase program authorized in November 2024 for 100,000 shares, the company repurchased 6,522 shares for $122 thousand between July 1, 2025, and September 30, 2025. Additionally, 16,868 shares were repurchased for $278 thousand between April 1, 2025, and June 30, 2025, under the same program, which was completed on July 31, 2025.
• In 2024, Ames National repurchased 43,057 shares under stock repurchase plans.

Share Issuance

• The number of outstanding shares for Ames National Corporation has generally shown a slight decrease over the last few years, rather than significant issuances. Shares outstanding were approximately 8.845 million in November 2025, compared to 9.11 million in 2020.
• While there are records of individual insider purchases, these do not represent company-level share issuances for capital raising purposes.

Inbound Investments

• No information was found regarding large inbound investments made in Ames National Corporation by third-parties, such as strategic partners or private equity firms, over the last 3-5 years.

Outbound Investments

• No information was found regarding instances where Ames National Corporation made strategic investments in other companies over the last 3-5 years, beyond its operations as a bank holding company with its affiliate banks. The company has historically completed bank acquisitions, with four since 2012, but no recent specific instances of outbound investments in other companies were detailed within the requested timeframe.

Capital Expenditures

• Explicit dollar values for capital expenditures were not readily available in the provided search snippets from financial reports. However, capital expenditures for a bank holding company like Ames National Corporation typically focus on investments in bank premises, equipment, and technology infrastructure to support its banking operations and services across its six affiliate banks.
• The annual depreciation and amortization for Ames National was $1.692 million in 2024, $1.752 million in 2023, and $1.99 million in 2022, reflecting the usage and aging of its capital assets.