What happened
Ames National Corporation (NASDAQ: ATLO) said on October 16, 2026 that third-quarter net income rose to $7.0 million. Earnings were $0.80 a share, up from $4.6 million, or $0.51, in the third quarter of 2025. For the nine months ended September 30, 2026, net income reached $18.9 million, or $2.14 a share, from $12.5 million, or $1.41, a year earlier.
The company said the increase mainly came from higher net interest income. That rose on higher yields and average balances on investments, lower market rates and reduced borrowings. The release also said the efficiency ratio improved to 54.97% from 61.76%. Stockholders' equity was $205.8 million. Book value per common share was $23.23, and the quarterly cash dividend was $0.24 per share.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Third-quarter net income | $7.0 million | from $4.6 million, + $2.5 million | News Release dated October 16, 2026 |
| Third-quarter earnings per share | $0.80 | from $0.51, + $0.29 | News Release dated October 16, 2026 |
| Nine-month net income | $18.9 million | from $12.5 million, + $6.4 million | News Release dated October 16, 2026 |
| Net interest income | $17.0 million | from $14.0 million, + $2.9 million | News Release dated October 16, 2026 |
| Net interest margin | 3.38% | from 2.83%, +0.55 percentage points | News Release dated October 16, 2026 |
| Stockholders' equity | $205.8 million | from $200.6 million, + $5.2 million | News Release dated October 16, 2026 |
Read more: Ames National (ATLO) stock analysis and investment case
Why it matters
Quarterly net interest income rose to $17.0 million from $14.0 million. Net interest margin widened to 3.38% from 2.83%, a 0.55 percentage-point increase. That matters for the investment case because OptimistFi's view is that ATLO works if its Iowa community-bank deposit franchise can keep funding stable assets at acceptable costs while credit losses stay benign.
Deposits were $1.83 billion at September 30, 2026, down 0.1% from $1.83 billion a year earlier. Other borrowings fell to $1.5 million from $23.5 million. The allowance for credit losses was 1.31% of loans, down from 1.39%. But substandard loans rose to $52.0 million from $29.7 million, and unrealized losses on the investment portfolio increased.
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What's next
The company said consultant fees of $600 thousand in the quarter are expected to continue throughout 2026 as negotiations are in process. It also said about $376 million of loans mature within one year at an average yield of about 5.6%, and about $100 million of investments mature within one year at about 1.9%.
Keeping borrowings low and credit losses contained would reinforce the case. More substandard loans or further unrealized losses would weaken it.
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Sources
- SEC 8-K — Current report filed October 16, 2026.
- News Release dated October 16, 2026 — Quarterly earnings release for the three and nine months ended September 30, 2026.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
