Ames National Corporation (Nasdaq: ATLO) reported net income of $7.0 million, or $0.80 per share, for the third quarter of 2026. This compares to net income of $4.6 million, or $0.51 per share, for the same period in 2025. For the nine months ended September 30, 2026, net income totaled $18.9 million, or $2.14 per share, up from $12.5 million, or $1.41 per share, in the prior year.
The increase in earnings is primarily attributed to higher net interest income. This was driven by increased yields and average balances on investments, combined with a declining cost of funds due to lower market rates and reduced borrowings. The company’s net interest margin improved to 3.38% for the quarter ended September 30, 2026, compared to 2.83% in the prior year.
On the balance sheet, total assets as of September 30, 2026, were $2.08 billion, a decrease of $25.8 million compared to the prior year. Net loans decreased to $1.26 billion, while securities available-for-sale increased to $671 million. Stockholders' equity stood at $205.8 million, representing 9.88% of total assets. The company declared a cash dividend of $0.24 per share.
Noninterest income for the third quarter of 2026 totaled $3.5 million, an increase of 36.7% compared to the prior year, driven by wealth management income and insurance proceeds related to storm-related property damage. Noninterest expense increased to $11.2 million, largely due to higher professional fees and salaries and benefits.
The company noted that credit loss expense for the third quarter of 2026 was $66 thousand, a significant decrease from $627 thousand in the prior year. However, net loan charge-offs for the quarter totaled $745 thousand.
