Earnings jump at Ames National (NASDAQ: ATLO) with Q1 2026 net income $6.0M
Rhea-AI Filing Summary
Ames National Corporation reported a strong first quarter of 2026, with net income of $6.0 million, or $0.67 per share, up from $3.4 million, or $0.39 per share, in the first quarter of 2025. Profitability improved as return on average assets rose to 1.12% and return on average equity to 11.31%, while the efficiency ratio improved to 59.69% from 66.38%.
Net interest income increased to $15.4 million, a 19.5% rise, helped by higher yields and balances on investments, lower funding costs, and a net interest margin of 3.01% versus 2.53% a year earlier. Credit quality contributed, with a $347 thousand credit loss benefit versus a $962 thousand expense. Total assets were $2.14 billion, loans $1.26 billion, deposits $1.87 billion, and the capital ratio strengthened to 9.69%. The quarterly dividend was increased 20% to $0.24 per share.
Positive
- Strong earnings growth: Q1 2026 net income rose to $6.0 million ($0.67 per share) from $3.4 million ($0.39 per share) in Q1 2025, supported by higher net interest income and a credit loss benefit.
- Margin and efficiency improvement: Net interest margin increased to 3.01% from 2.53%, while the efficiency ratio improved to 59.69% from 66.38%, indicating better profitability and cost control.
- Capital and dividend strength: The capital ratio improved to 9.69% and stockholders’ equity increased to $207.6 million, while the quarterly dividend was raised 20% to $0.24 per share.
Negative
- None.
Insights
Q1 2026 shows sharply higher earnings driven by margin expansion and lower credit costs.
Ames National nearly doubled profitability year over year, with net income at $5.96M and EPS of $0.67. Net interest income rose 19.5% to $15.4M, and the tax-equivalent net interest margin expanded to 3.01% from 2.53%.
Credit provisions swung to a $347K benefit from a $962K expense, supporting earnings even as substandard and past-due loans increased. The allowance for credit losses stayed at 1.36% of loans, and net loan recoveries modestly improved overall credit performance in Q1 2026.
Capital and shareholder returns strengthened, with the capital ratio at 9.69% and stockholders’ equity up to $207.6M. The quarterly dividend was raised 20% to $0.24 per share, while the share repurchase program saw no activity during the quarter, leaving capacity under the existing authorization.
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
efficiency ratio financial
allowance for credit losses financial
substandard-impaired loans financial
New Markets Tax Credit financial
Earnings Snapshot
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Exhibit No.
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Description
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99.1
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News Release dated April 24, 2026
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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AMES NATIONAL CORPORATION
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Date: April 24, 2026
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By:
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/s/ John P. Nelson
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John P. Nelson, Chief Executive Officer and President
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Principal Executive Officer
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EXHIBIT 99.1
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NEWS RELEASE |
CONTACT: |
JOHN P. NELSON |
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FOR IMMEDIATE RELEASE |
CEO AND PRESIDENT |
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(515) 232-6251 |
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April 24, 2026 |
AMES NATIONAL CORPORATION
ANNOUNCES EARNINGS FOR THE first QUARTER OF 2026
Ames, Iowa – Ames National Corporation (Nasdaq: ATLO; the “Company”) today reported net income for the first quarter of 2026 of $6.0 million, or $0.67 per share, compared to $3.4 million, or $0.39 per share, earned in the first quarter of 2025. The increase in earnings is primarily due to an increase in net interest income and decrease in credit loss expense. Net interest income increased due to higher yields and average balances on investments, combined with a lower cost of funds driven by declining market rates and reduced borrowings. The decrease in credit loss expense was primarily due to a decline in loan balances in the first quarter of 2026 and a specific reserve placed on a commercial loan relationship in 2025.
INCOME STATEMENT HIGHLIGHTS (unaudited)
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Three Months Ended |
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March 31, |
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2026 |
2025 |
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Net income (in thousands) |
$ | 5,960 | $ | 3,443 | ||||
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Earnings per share - basic and diluted |
$ | 0.67 | $ | 0.39 | ||||
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Return on average assets |
1.12 | % | 0.65 | % | ||||
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Return on average equity |
11.31 | % | 7.72 | % | ||||
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Efficiency ratio |
59.69 | % | 66.38 | % | ||||
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Net interest margin |
3.01 | % | 2.53 | % | ||||
COMPANY STOCK HIGHLIGHTS (unaudited)
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As of or for the |
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three months ended |
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March 31, |
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Company Stock (ATLO) |
2026 |
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Closing price |
$28.22 | |||
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Price range |
$22.46 - 28.44 | |||
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Book value per common share |
$23.44 | |||
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Cash dividend declared |
$0.24 | |||
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Dividend yield |
3.40% |
BALANCE SHEET HIGHLIGHTS (unaudited)
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March 31, |
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(Dollars in thousands) |
2026 |
2025 |
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Assets |
$ | 2,142,539 | $ | 2,184,293 | ||||
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Loans receivable, net |
1,264,827 | 1,306,230 | ||||||
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Deposits |
1,867,393 | 1,906,384 | ||||||
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Stockholders' equity |
207,570 | 183,056 | ||||||
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Capital ratio |
9.69 | % | 8.38 | % | ||||
First Quarter 2026 Results:
First quarter 2026 loan interest income was $142 thousand higher than first quarter 2025 and was primarily due to improved yield on the loan portfolio. Interest income from investment securities increased by $1.1 million during this same period due to higher average balances and maturities reinvested at higher rates. Deposit interest expense decreased $1.1 million during this same period due primarily to decreases in market rates. Other borrowed funds interest expense decreased $334 thousand during the same period due primarily to reduced borrowings. First quarter 2026 net interest income totaled $15.4 million, an increase of $2.5 million, or 19.5%, compared to the same quarter a year ago. These factors were the primary contributors to the Company’s net interest margin, on a tax-equivalent basis (a non-GAAP measure), improving to 3.01% for the quarter ended March 31, 2026 as compared to 2.53% for the quarter ended March 31, 2025 and 3.00% for the quarter ended December 31, 2025.
A credit loss benefit of ($347)thousand was recognized in the first quarter of 2026 as compared to a credit loss expense of $962 thousand in the first quarter of 2025. Net loan recoveries for the quarter ended March 31, 2026 totaled $32 thousand compared to net loan charge-offs totaled $48 thousand for the quarter ended March 31, 2025. The credit loss benefit in 2026 was primarily due to a decline in loan balances. The credit loss expense in 2025 was primarily due to an increase in specific reserves in the commercial loan portfolio.
Noninterest income for the first quarter of 2026 totaled $2.8 million as compared to $2.5 million in the first quarter of 2025, an increase of 9.3%. The increase is primarily due to an increase in wealth management income due to growth in assets under management and an increase in estate and trust fees.
Noninterest expense for the first quarter of 2026 totaled $10.9 million compared to $10.3 million recorded in the first quarter of 2025, an increase of 5.9%. The increase reflects higher professional fees, salaries and benefits. The increase in professional fees was primarily due to $300 thousand of consultant fees for certain contract negotiations in the first quarter of 2026. The consultant fees are expected to continue throughout 2026 as the negotiation is in process. The increase in salaries and benefits was driven by anticipated bonus payouts as Company performance thresholds are met. The efficiency ratio was 59.69% for the first quarter of 2026 as compared to 66.38% in the first quarter of 2025. The efficiency ratio continues to improve as net interest margin increases.
Income tax expense for the first quarter of 2026 totaled $1.7 million compared to $794 thousand recorded in the first quarter of 2025. The effective tax rate was 22% and 19% for the quarters ended March 31, 2026 and 2025, respectively. The increase in income tax expense and effective tax rate was primarily due to higher net income and lower New Markets Tax Credits. The final year of tax credits was 2025 for a majority of the New Markets Tax Credit projects.
Balance Sheet Review:
As of March 31, 2026, total assets were $2.1 billion, a decrease of $41.8 million, as compared to March 31, 2025. The decrease in assets was primarily due to a decrease in interest-bearing deposits in financial institutions and loans receivable, partially offset by an increase in securities available-for-sale.
Securities available-for-sale as of March 31, 2026 increased to $688.8 million from $640.4 million as of March 31, 2025. The increase in securities available-for-sale is primarily due to purchases in excess of maturities and lower unrealized losses in the investment portfolio. The Company's investment portfolio had an expected duration of 3.2 years as of March 31, 2026. There are approximately $102 million of investments maturing within one year at an average yield of approximately 1.5%.
Net loans as of March 31, 2026 decreased to $1.26 billion as compared to $1.31 billion as of March 31, 2025, a decrease of 3.2%. The decrease was primarily due to payoffs in the commercial real estate portfolio and partially offset by an increase in the 1 to 4 family residential real estate portfolio. Substandard loans were $34.8 million and $32.4 million as of March 31, 2026 and 2025, respectively. Substandard-impaired loans were $19.6 million and $15.7 million as of March 31, 2026 and 2025, respectively. The increase in substandard loans is primarily due to weakening in the multi-family portfolio and partially offset by an improvement in the commercial real estate portfolio. Some multi-family real estate loans are experiencing a decline in occupancy rates. The increase in substandard-impaired loans is primarily due to two agricultural loan relationships. Loans past due 30 days or more totaled $19.4 million as of March 31, 2026, compared to $11.8 million as of March 31, 2025. The increase is primarily related to two agricultural operating loan relationships classified as substandard-impaired and one construction real estate loan relationship that matured and is being restructured. There are approximately $350 million of loans maturing within one year at an average yield of approximately 5.4%.
The allowance for credit losses on March 31, 2026 totaled $17.4 million or 1.36% of loans, compared to $18.0 million, or 1.36% of loans, as of March 31, 2025. The decrease in the allowance for credit losses is primarily due to a decrease in loan balances.
Deposits totaled $1.87 billion as of March 31, 2026, a decrease of 2.0%, compared to $1.91 billion recorded as of March 31, 2025. The decrease in deposits is primarily due to a decrease in public funds and partially offset by higher balances in retail and commercial checking accounts. Securities sold under agreements to repurchase decreased to $36.7 million as of March 31, 2026, compared to $45.8 million as of March 31, 2025. Securities sold under agreements to repurchase and deposit balances fluctuate as customers’ liquidity needs vary and could be impacted by prevailing market interest rates, competition, and economic conditions. Approximately 15% of deposits are tied to external indexes as of March 31, 2026. Deposit interest expense related to these deposits can be more volatile than other deposit products in a changing interest rate environment.
Other borrowings decreased to $18.2 million as of March 31, 2026 compared to $35.8 million as of March 31, 2025. The Company has continued to reduce borrowings as investments have matured and cash is redeployed.
The Company’s stockholders’ equity represented 9.7% of total assets as of March 31, 2026 with all of the Company’s six affiliate banks considered well-capitalized as defined by federal capital regulations. Total stockholders’ equity was $207.6 million as of March 31, 2026, compared to $183.1 million as of March 31, 2025. The increase in stockholders’ equity of $24.5 million was primarily the result of a decrease in unrealized losses on the investment portfolio and retention of net income in excess of dividends.
Share Repurchase Program
For the period January 1, 2026 through March 31, 2026, under the repurchase program that was announced in August 2025, which allowed for the repurchase of 200,000 shares of common stock, the Company did not repurchase any shares. There were 165,053 shares available to be repurchased under that repurchase program as of March 31, 2026.
The weighted average outstanding shares for the three months ended March 31, 2026 and 2025 was 8,857,220 and 8,917,386, respectively. The Company had no potentially dilutive securities outstanding during the periods presented.
Cash Dividend Announcement
On February 11, 2026, the Company declared a quarterly cash dividend on common stock, payable on March 13, 2026 to stockholders of record as of February 27, 2026, equal to $0.24 per share. The dividend is an increase of $0.04 per share or 20% from the prior quarter.
About Ames National Corporation
Ames National Corporation affiliate Iowa banks are First National Bank, Ames; Boone Bank & Trust Co., Boone; State Bank & Trust Co., Nevada; Reliance State Bank, Story City; United Bank & Trust Co., Marshalltown; and Iowa State Savings Bank, Creston, Iowa.
The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this News Release, including forward-looking statements concerning the Company’s future performance and asset quality. Forward-looking statements contained in this News Release are not historical facts and are based on management’s current beliefs, assumptions, predictions and expectations of future events, including the Company’s future performance, taking into account all information currently available to management. These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management’s control. If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “forecasts”, “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. The risks and uncertainties that may affect the Company’s future performance and asset quality include, but are not limited to, the following: national, regional and local economic conditions and the impact they may have on the Company and its customers; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses as dictated by new market conditions or regulatory requirements; changes in local, national and international economic conditions, including rising inflation rates; fiscal and monetary policies of the U.S. government; the imposition of tariffs and retaliatory tariffs; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company’s business, including those discussed under the headings “Forward-Looking Statements and Business Risks” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2025. Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on which such statements are made. The Company undertakes no obligation to revise or update such forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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AMES NATIONAL CORPORATION AND SUBSIDIARIES |
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Consolidated Balance Sheets (unaudited) |
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(in thousands, except share and per share data) |
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March 31, |
March 31, |
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ASSETS |
2026 |
2025 |
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Cash and due from banks |
$ | 21,428 | $ | 20,498 | ||||
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Interest-bearing deposits in financial institutions and federal funds sold |
96,723 | 142,893 | ||||||
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Total cash and cash equivalents |
118,151 | 163,391 | ||||||
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Interest-bearing time deposits |
5,428 | 5,166 | ||||||
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Securities available-for-sale |
688,827 | 640,416 | ||||||
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Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost |
2,667 | 3,384 | ||||||
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Loans receivable, net |
1,264,827 | 1,306,230 | ||||||
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Loans held for sale |
614 | 540 | ||||||
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Bank premises and equipment, net |
21,010 | 21,445 | ||||||
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Accrued income receivable |
13,098 | 12,240 | ||||||
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Other real estate owned |
212 | - | ||||||
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Bank-owned life insurance |
3,326 | 3,235 | ||||||
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Deferred income taxes, net |
8,806 | 12,010 | ||||||
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Intangible assets, net |
722 | 1,015 | ||||||
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Goodwill |
12,424 | 12,424 | ||||||
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Other assets |
2,427 | 2,797 | ||||||
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Total assets |
$ | 2,142,539 | $ | 2,184,293 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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LIABILITIES |
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Deposits |
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Noninterest-bearing checking |
$ | 330,687 | $ | 336,844 | ||||
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Interest-bearing checking |
661,131 | 663,125 | ||||||
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Savings and money market |
553,513 | 575,365 | ||||||
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Time, $250 and over |
80,776 | 87,946 | ||||||
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Other time |
241,286 | 243,104 | ||||||
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Total deposits |
1,867,393 | 1,906,384 | ||||||
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Securities sold under agreements to repurchase |
36,726 | 45,774 | ||||||
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Other borrowings |
18,202 | 35,802 | ||||||
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Dividends payable |
- | 1,783 | ||||||
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Accrued interest payable |
2,218 | 2,555 | ||||||
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Accrued expenses and other liabilities |
10,430 | 8,939 | ||||||
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Total liabilities |
1,934,969 | 2,001,237 | ||||||
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STOCKHOLDERS' EQUITY |
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Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 8,857,220 and 8,915,557 shares as of March 31, 2026 and 2025, respectively |
17,714 | 17,831 | ||||||
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Additional paid-in capital |
12,135 | 13,152 | ||||||
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Retained earnings |
199,840 | 183,914 | ||||||
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Accumulated other comprehensive (loss) |
(22,119 | ) | (31,841 | ) | ||||
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Total stockholders' equity |
207,570 | 183,056 | ||||||
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Total liabilities and stockholders' equity |
$ | 2,142,539 | $ | 2,184,293 | ||||
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AMES NATIONAL CORPORATION AND SUBSIDIARIES |
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Consolidated Statements of Income (unaudited) |
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(in thousands, except per share data) |
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Three Months Ended |
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March 31, |
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2026 |
2025 |
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Interest and dividend income: |
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Loans, including fees |
$ | 16,816 | $ | 16,674 | ||||
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Securities: |
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Taxable |
4,009 | 2,840 | ||||||
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Tax-exempt |
422 | 453 | ||||||
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Other interest and dividend income |
969 | 1,151 | ||||||
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Total interest and dividend income |
22,216 | 21,118 | ||||||
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Interest expense: |
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Deposits |
6,335 | 7,419 | ||||||
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Other borrowed funds |
450 | 784 | ||||||
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Total interest expense |
6,785 | 8,203 | ||||||
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Net interest income |
15,431 | 12,915 | ||||||
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Credit loss expense (benefit) |
(347 | ) | 962 | |||||
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Net interest income after credit loss expense (benefit) |
15,778 | 11,953 | ||||||
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Noninterest income: |
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Wealth management income |
1,596 | 1,444 | ||||||
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Service fees |
378 | 370 | ||||||
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Securities gains (losses), net |
(6 | ) | - | |||||
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Gain on sale of loans held for sale |
140 | 75 | ||||||
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Merchant and card fees |
318 | 348 | ||||||
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Other noninterest income |
359 | 310 | ||||||
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Total noninterest income |
2,785 | 2,547 | ||||||
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Noninterest expense: |
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Salaries and employee benefits |
6,777 | 6,373 | ||||||
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Data processing |
1,492 | 1,352 | ||||||
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Occupancy expenses, net |
794 | 772 | ||||||
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FDIC insurance assessments |
240 | 260 | ||||||
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Professional fees |
770 | 485 | ||||||
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Business development |
343 | 372 | ||||||
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Intangible asset amortization |
69 | 77 | ||||||
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New market tax credit projects amortization |
17 | 192 | ||||||
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Other operating expenses, net |
371 | 380 | ||||||
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Total noninterest expense |
10,873 | 10,263 | ||||||
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Income before income taxes |
7,690 | 4,237 | ||||||
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Provision for income taxes |
1,730 | 794 | ||||||
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Net income |
$ | 5,960 | $ | 3,443 | ||||
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Basic and diluted earnings per share |
$ | 0.67 | $ | 0.39 | ||||
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Dividends declared per share |
$ | 0.24 | $ | 0.20 | ||||
AVERAGE BALANCES AND INTEREST RATES (unaudited)
The following two tables are used to calculate the Company’s non-GAAP net interest margin on a fully taxable equivalent (FTE) basis. The first table includes the Company’s average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest-bearing liabilities. The net interest margin is equal to interest income less interest expense divided by average earning assets.
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AVERAGE BALANCE SHEETS AND INTEREST RATES |
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Three Months Ended March 31, |
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2026 |
2025 |
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Revenue/ |
Yield/ |
Average |
Revenue/ |
Yield/ |
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balance |
expense |
rate |
balance |
expense |
rate |
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ASSETS |
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(dollars in thousands) |
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Interest-earning assets |
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Loans (1) |
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Commercial |
$ | 79,216 | $ | 1,182 | 5.97 | % | $ | 89,952 | $ | 1,370 | 6.09 | % | ||||||||||||
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Agricultural |
122,565 | 1,885 | 6.15 | % | 123,643 | 2,130 | 6.89 | % | ||||||||||||||||
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Real estate |
1,062,327 | 13,556 | 5.10 | % | 1,079,940 | 12,963 | 4.80 | % | ||||||||||||||||
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Consumer and other |
14,763 | 193 | 5.23 | % | 16,643 | 211 | 5.07 | % | ||||||||||||||||
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Total loans (including fees) |
1,278,871 | 16,816 | 5.26 | % | 1,310,178 | 16,674 | 5.09 | % | ||||||||||||||||
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Investment securities |
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Taxable |
600,127 | 4,009 | 2.67 | % | 557,398 | 2,840 | 2.04 | % | ||||||||||||||||
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Tax-exempt (2) |
74,993 | 534 | 2.85 | % | 83,730 | 573 | 2.74 | % | ||||||||||||||||
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Total investment securities |
675,120 | 4,543 | 2.69 | % | 641,128 | 3,413 | 2.13 | % | ||||||||||||||||
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Interest-bearing deposits with banks and federal funds sold |
108,637 | 969 | 3.57 | % | 108,867 | 1,151 | 4.23 | % | ||||||||||||||||
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Total interest-earning assets |
2,062,628 | $ | 22,328 | 4.33 | % | 2,060,173 | $ | 21,238 | 4.12 | % | ||||||||||||||
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Noninterest-earning assets |
62,585 | 69,528 | ||||||||||||||||||||||
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TOTAL ASSETS |
$ | 2,125,213 | $ | 2,129,701 | ||||||||||||||||||||
(1) Average loan balances include nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.
(2) Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 21%.
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AVERAGE BALANCE SHEETS AND INTEREST RATES |
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Three Months Ended March 31, |
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2026 |
2025 |
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Average |
Revenue/ |
Yield/ |
Average |
Revenue/ |
Yield/ |
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balance |
expense |
rate |
balance |
expense |
rate |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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(dollars in thousands) |
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Interest-bearing liabilities |
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Deposits |
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Interest-bearing checking, savings accounts and money markets |
$ | 1,181,173 | $ | 3,572 | 1.21 | % | $ | 1,179,259 | $ | 4,131 | 1.40 | % | ||||||||||||
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Time deposits |
323,575 | 2,763 | 3.42 | % | 330,967 | 3,288 | 3.97 | % | ||||||||||||||||
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Total deposits |
1,504,748 | 6,335 | 1.68 | % | 1,510,226 | 7,419 | 1.97 | % | ||||||||||||||||
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Other borrowed funds |
56,116 | 450 | 3.21 | % | 87,594 | 784 | 3.58 | % | ||||||||||||||||
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Total interest-bearing liabilities |
1,560,864 | 6,785 | 1.74 | % | 1,597,820 | 8,203 | 2.05 | % | ||||||||||||||||
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Noninterest-bearing liabilities |
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Noninterest-bearing checking |
340,294 | 339,709 | ||||||||||||||||||||||
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Other liabilities |
13,341 | 13,834 | ||||||||||||||||||||||
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Stockholders' equity |
210,714 | 178,338 | ||||||||||||||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ | 2,125,213 | $ | 2,129,701 | ||||||||||||||||||||
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Net interest income (FTE)(3) |
$ | 15,543 | $ | 13,035 | ||||||||||||||||||||
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Net interest spread (FTE) |
2.59 | % | 2.07 | % | ||||||||||||||||||||
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Net interest margin (FTE)(3) |
3.01 | % | 2.53 | % | ||||||||||||||||||||
(3) Net interest income (FTE) is a non-GAAP financial measure.
Non-GAAP Financial Measures
This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on an FTE basis. Management believes these non-GAAP financial measures are widely used in the financial institutions industry and provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on an FTE basis to GAAP (dollars in thousands).
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Three Months Ended March 31, |
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2026 |
2025 |
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Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP: |
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Net interest income (GAAP) |
$ | 15,431 | $ | 12,915 | ||||
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Tax-equivalent adjustment (1) |
112 | 120 | ||||||
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Net interest income on an FTE basis (non-GAAP) |
15,543 | 13,035 | ||||||
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Average interest-earning assets |
$ | 2,062,628 | $ | 2,060,173 | ||||
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Net interest margin on an FTE basis (non-GAAP) |
3.01 | % | 2.53 | % | ||||
(1) Computed on a tax-equivalent basis using an incremental federal income tax rate of 21 percent, adjusted to reflect the effect of the tax-exempt interest income associated with owning tax-exempt securities and loans.