Ames National Q3 2026 earnings rise to $7 million
No shares were repurchased under the existing 200,000-share program during the third quarter, leaving 165,053 available at September 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Ames National Corporation (ATLO) reported third-quarter 2026 net income of $7.0 million, or $0.80 per share, versus $4.6 million and $0.51 per share a year earlier. For the nine months ended September 30, 2026, net income was $18.9 million, or $2.14 per share, compared with $12.5 million and $1.41 per share.
Third-quarter net interest income was $17.0 million, up 20.7% year over year; the company attributed the increase to higher investment yields and average balances and lower funding costs. Tax-equivalent net interest margin was 3.38%, versus 2.83%, and the efficiency ratio was 54.97%, versus 61.76%. Noninterest income rose 36.7% to $3.5 million; noninterest expense rose 9.6% to $11.2 million and included $600 thousand of consultant fees for contract negotiations, expected to continue throughout 2026.
Substandard loans were $52.0 million at September 30, 2026, compared with $29.7 million a year earlier; the company attributed the increase to one large relationship and weakening in multi-family loans. Total assets were $2.1 billion and deposits were $1.831 billion as of September 30, 2026. Stockholders’ equity was $205.8 million, or 9.88% of assets. The company declared a $0.24-per-share quarterly cash dividend on August 12, payable September 15, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net interest income increased 20.7% year over year.
Negative
- Moderate pointSubstandard loans totaled $52.0 million at September 30, 2026, versus $29.7 million a year earlier.
Filing Explained
After
8-K Event Classification
Key Figures
Key Terms
Net interest margin (FTE) financial
nonaccrual loans financial
Allowance for credit losses financial
Substandard-impaired loans financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did ATLO earn in the third quarter of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
(Exact Name of Registrant as Specified in its Charter)
|
|
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(Commission File Number)
|
(I.R.S. Employer
Identification No.)
|
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
|
|
|
|
|
Exhibit No.
|
Description
|
||
|
99.1
|
News Release dated October 16, 2026
|
||
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
|
AMES NATIONAL CORPORATION
|
|||
|
Date: October 16, 2026
|
By:
|
/s/ John P. Nelson
|
|
|
John P. Nelson, Chief Executive Officer and President
|
|||
|
Principal Executive Officer
|
|||
EXHIBIT 99.1
|
NEWS RELEASE |
CONTACT: |
JOHN P. NELSON |
|
|
FOR IMMEDIATE RELEASE |
CEO AND PRESIDENT |
||
|
(515) 232-6251 |
|||
|
October 16, 2026 |
AMES NATIONAL CORPORATION
ANNOUNCES EARNINGS FOR THE third QUARTER OF 2026
Ames, Iowa – Ames National Corporation (Nasdaq: ATLO; the “Company”) today reported net income for the third quarter of 2026 of $7.0 million, or $0.80 per share, compared to $4.6 million, or $0.51 per share, earned in the third quarter of 2025. For the nine months ended September 30, 2026, net income for the Company totaled $18.9 million, or $2.14 per share, compared to $12.5 million, or $1.41 per share earned in the same period of 2025. The increase in earnings is primarily due to an increase in net interest income. Net interest income increased due to higher yields and average balances on investments, combined with a declining cost of funds driven by lower market rates and reduced borrowings.
INCOME STATEMENT HIGHLIGHTS (unaudited)
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Net income (in thousands) |
$ | 7,048 | $ | 4,559 | $ | 18,939 | $ | 12,513 | ||||||||
|
Earnings per share - basic and diluted |
$ | 0.80 | $ | 0.51 | $ | 2.14 | $ | 1.41 | ||||||||
|
Return on average assets |
1.35 | % | 0.88 | % | 1.19 | % | 0.79 | % | ||||||||
|
Return on average equity |
13.18 | % | 9.31 | % | 11.92 | % | 8.92 | % | ||||||||
|
Efficiency ratio |
54.97 | % | 61.76 | % | 57.63 | % | 64.10 | % | ||||||||
|
Net interest margin |
3.38 | % | 2.83 | % | 3.19 | % | 2.67 | % | ||||||||
COMPANY STOCK HIGHLIGHTS (unaudited)
|
As of or for the |
||||
|
three months ended |
||||
|
September 30, |
||||
|
Company Stock (ATLO) |
2026 |
|||
|
Closing price |
$31.38 | |||
|
Price range |
$28.56 - 32.86 | |||
|
Book value per common share |
$23.23 | |||
|
Cash dividend declared |
$0.24 | |||
|
Dividend yield |
3.06% |
BALANCE SHEET HIGHLIGHTS (unaudited)
|
September 30, |
||||||||
|
(Dollars in thousands) |
2026 |
2025 |
||||||
|
Assets |
$ | 2,082,162 | $ | 2,107,999 | ||||
|
Loans receivable, net |
1,260,186 | 1,275,794 | ||||||
|
Deposits |
1,830,503 | 1,832,819 | ||||||
|
Stockholders' equity |
205,754 | 200,592 | ||||||
|
Capital ratio |
9.88 | % | 9.52 | % | ||||
Third Quarter 2026 Results:
Third quarter 2026 loan interest income was $490 thousand higher than third quarter 2025 and was primarily due to improved yield on the loan portfolio. The interest income recognized on nonaccrual loans for the three months ended September 30, 2026 and 2025 was approximately $171 thousand and $54 thousand, respectively. Interest income from investment securities increased by $1.4 million during this same period due to higher average balances and maturities reinvested at higher rates. Deposit interest expense decreased $801 thousand during this same period due primarily to lower market rates. Other borrowed funds interest expense decreased $327 thousand during the same period due primarily to reduced borrowings. Third quarter 2026 net interest income totaled $17.0 million, an increase of $2.9 million, or 20.7%, 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 3.38% for the quarter ended September 30, 2026 as compared to 2.83% for the quarter ended September 30, 2025 and 3.18% for the quarter ended June 30, 2026.
A credit loss expense of $66 thousand was recognized in the third quarter of 2026 as compared to $627 thousand in the third quarter of 2025. Net loan charge-offs for the quarter ended September 30, 2026 totaled $745 thousand compared to net loan recoveries of $344 thousand for the quarter ended September 30, 2025. The credit loss expense in 2026 was primarily due to charge-offs in the commercial real estate and operating loan portfolios, partially offset by a decrease in specific reserves. The credit loss expense in 2025 was primarily due to an increase in specific reserves for loans in those same portfolios. The charge-offs in the third quarter of 2026 were on commercial real estate and operating loans for which specific reserves had previously been established.
Noninterest income for the third quarter of 2026 totaled $3.5 million as compared to $2.5 million in the third quarter of 2025, an increase of 36.7%. The increase is primarily due to an increase in wealth management income and other noninterest income. The increase in wealth management income is primarily due to estate and trust fees earned from several estates that concluded administration during the quarter, as well as continued growth in assets under management. The increase in other noninterest income is primarily due to $235 thousand of insurance proceeds received in connection with storm-related property damage.
Noninterest expense for the third quarter of 2026 totaled $11.2 million compared to $10.2 million recorded in the third quarter of 2025, an increase of 9.6%. The increase reflects higher professional fees, salaries and benefits. The increase in professional fees was primarily due to $600 thousand of consultant fees for certain contract negotiations in the third quarter of 2026. The consultant fees are expected to continue throughout 2026 as negotiations are in process. The increase in salaries and benefits was driven by anticipated bonus payouts as Company performance thresholds are met, in addition to normal increases in salaries and benefits. The efficiency ratio was 54.97% for the third quarter of 2026 as compared to 61.76% in the third quarter of 2025. The efficiency ratio continues to improve as net interest margin increases.
Income tax expense for the third quarter of 2026 totaled $2.1 million compared to $1.2 million recorded in the third quarter of 2025. The effective tax rate was 23% and 20% for the quarters ended September 30, 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.
Nine Months 2026 Results:
For the nine months ended September 30, 2026 loan interest income was $1.3 million higher than the first nine months of 2025 and was primarily due to improved yield on the loan portfolio. The interest income recognized on nonaccrual loans for the nine months ended September 30, 2026 and 2025 was approximately $202 thousand and $56 thousand, respectively. Interest income from investment securities increased $4.0 million during this same period due to higher average balances and maturities reinvested at higher rates. Interest-bearing deposits with banks and federal funds sold interest income decreased by $620 thousand during this same period due to lower average balances. Deposit interest expense decreased $2.8 million during this same period due primarily to lower market rates. Other borrowed funds interest expense decreased $878 thousand during the same period due primarily to reduced borrowings. The net interest income for the nine months ended September 30, 2026 totaled $48.8 million, an increase of $8.3 million, or 20.6%, compared to the same period a year ago. These factors were the primary contributors to the Company’s net interest margin improving to 3.19% for the nine months ended September 30, 2026 as compared to 2.67% for the nine months ended September 30, 2025.
A credit loss benefit of ($73) thousand was recognized in the nine months ended September 30, 2026 as compared to a credit loss expense of $1.7 million in the nine months ended September 30, 2025. Net loan charge-offs for the nine months ended September 30, 2026 totaled $968 thousand compared to net loan charge-offs of $812 thousand for the nine months ended September 30, 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 real estate and operating loan portfolios.
Noninterest income for the nine months ended September 30, 2026 totaled $9.0 million as compared to $7.7 million in the nine months ended September 30, 2025, an increase of 15.9%. The increase is primarily due to an increase in wealth management income and other noninterest income. The increase in wealth management income is primarily due to estate and trust fees earned from several estates that concluded administration during 2026, as well as continued growth in assets under management. The increase in other noninterest income is primarily due to $235 thousand of insurance proceeds received in connection with storm-related property damage.
Noninterest expense for the nine months ended September 30, 2026 totaled $33.3 million compared to $30.9 million recorded in the nine months ended September 30, 2025, an increase of 7.8%. The increase reflects higher professional fees, salaries and benefits. The increase in professional fees was primarily due to $1.2 million of consultant fees for certain contract negotiations in the nine months ended September 30, 2026. The consultant fees are expected to continue throughout 2026 as negotiations are in process. The increase in salaries and benefits was driven by anticipated bonus payouts as Company performance thresholds are met, in addition to normal increases in salaries and benefits. The efficiency ratio was 57.63% for the nine months ended September 30, 2026 as compared to 64.10% in the nine months ended September 30, 2025. The efficiency ratio continues to improve as net interest margin increases.
Income tax expense for the nine months ended September 30, 2026 totaled $5.6 million compared to $3.1 million recorded in the nine months ended September 30, 2025. The effective tax rate was 23% and 20% for the nine months ended September 30, 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 September 30, 2026, total assets were $2.1 billion, a decrease of $25.8 million, as compared to September 30, 2025. The decrease in assets was primarily due to a decrease in interest-bearing deposits in financial institutions and loan payoffs, partially offset by an increase in securities available-for-sale.
Securities available-for-sale as of September 30, 2026 increased to $671 million from $651 million as of September 30, 2025. The increase in securities available-for-sale is primarily due to purchases in excess of maturities and partially offset by an increase in unrealized losses in the investment portfolio. The Company's investment portfolio had an expected duration of 3.1 years as of September 30, 2026. There are approximately $100 million of investments maturing within one year at an average yield of approximately 1.9%.
Net loans as of September 30, 2026 decreased to $1.26 billion as compared to $1.28 billion as of September 30, 2025, a decrease of 1.2%. The decrease was primarily due to payoffs in the multi-family and commercial real estate portfolios. Substandard loans were $52.0 million and $29.7 million as of September 30, 2026 and 2025, respectively. Substandard-impaired loans were $16.5 million and $18.8 million as of September 30, 2026 and 2025, respectively. The increase in substandard loans is primarily due to one large relationship secured by 1-4 family residential properties and weakening in the multi-family portfolio as some loans are experiencing a decline in occupancy rates. The decrease in substandard-impaired loans is primarily due to loan payoffs in the commercial real estate loan portfolio, partially offset by downgrades in one agricultural operating loan relationship. Loans past due 30 days or more totaled $10.0 million as of September 30, 2026, compared to $10.3 million as of September 30, 2025. Subsequent to September 30, 2026, a substandard-impaired and nonaccrual agricultural loan relationship of $3 million was paid in full. Approximately $300 thousand of nonaccrual interest was collected and recognized in October 2026. There are approximately $376 million of loans maturing within one year at an average yield of approximately 5.6%.
The allowance for credit losses on September 30, 2026 totaled $16.7 million or 1.31% of loans, compared to $18.0 million, or 1.39% of loans, as of September 30, 2025. The decrease in the allowance for credit losses is primarily due to a decline in specific reserves and outstanding loan balances.
Deposits totaled $1.831 billion as of September 30, 2026, a decrease of 0.1%, compared to $1.833 billion recorded as of September 30, 2025. The decrease in deposits is primarily due to a decrease in public funds and time deposits, partially offset by higher balances in retail and commercial checking and money market accounts. Securities sold under agreements to repurchase decreased to $33.3 million as of September 30, 2026, compared to $40.6 million as of September 30, 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 14% of deposits are tied to external indexes as of September 30, 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 $1.5 million as of September 30, 2026 compared to $23.5 million as of September 30, 2025. The Company has continued to reduce borrowings as investments have matured and cash is redeployed.
The Company’s stockholders’ equity represented 9.88% of total assets as of September 30, 2026 with all of the Company’s six affiliate banks considered well-capitalized as defined by federal capital regulations. Total stockholders’ equity was $205.8 million as of September 30, 2026, compared to $200.6 million as of September 30, 2025. The increase in stockholders’ equity of $5.2 million was primarily the result of retention of net income in excess of dividends and partially offset by an increase in unrealized losses on the investment portfolio.
Share Repurchase Program
For the period July 1, 2026 through September 30, 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 September 30, 2026.
Cash Dividend Announcement
On August 12, 2026, the Company declared a quarterly cash dividend on common stock, payable on September 15, 2026 to stockholders of record as of September 1, 2026, equal to $0.24 per share.
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.
|
AMES NATIONAL CORPORATION AND SUBSIDIARIES |
|
Consolidated Balance Sheets (unaudited) |
|
(in thousands, except share and per share data) |
|
September 30, |
September 30, |
|||||||
|
ASSETS |
2026 |
2025 |
||||||
|
Cash and due from banks |
$ | 20,200 | $ | 22,706 | ||||
|
Interest-bearing deposits in financial institutions and federal funds sold |
55,009 | 85,455 | ||||||
|
Total cash and cash equivalents |
75,209 | 108,161 | ||||||
|
Interest-bearing time deposits |
4,194 | 5,678 | ||||||
|
Securities available-for-sale |
671,332 | 650,660 | ||||||
|
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost |
1,977 | 2,891 | ||||||
|
Loans receivable, net |
1,260,186 | 1,275,794 | ||||||
|
Loans held for sale |
1,154 | 888 | ||||||
|
Bank premises and equipment, net |
21,733 | 21,008 | ||||||
|
Accrued income receivable |
15,492 | 15,001 | ||||||
|
Other real estate owned |
- | 204 | ||||||
|
Bank-owned life insurance |
3,374 | 3,279 | ||||||
|
Deferred income taxes, net |
11,864 | 8,606 | ||||||
|
Intangible assets, net |
586 | 861 | ||||||
|
Goodwill |
12,424 | 12,424 | ||||||
|
Other assets |
2,637 | 2,544 | ||||||
|
Total assets |
$ | 2,082,162 | $ | 2,107,999 | ||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
|
LIABILITIES |
||||||||
|
Deposits |
||||||||
|
Noninterest-bearing checking |
$ | 330,947 | $ | 310,155 | ||||
|
Interest-bearing checking |
639,205 | 658,686 | ||||||
|
Savings and money market |
541,906 | 526,935 | ||||||
|
Time, $250 and over |
80,620 | 92,330 | ||||||
|
Other time |
237,825 | 244,713 | ||||||
|
Total deposits |
1,830,503 | 1,832,819 | ||||||
|
Securities sold under agreements to repurchase |
33,315 | 40,623 | ||||||
|
Other borrowings |
1,452 | 23,502 | ||||||
|
Accrued interest payable |
2,090 | 2,485 | ||||||
|
Accrued expenses and other liabilities |
9,048 | 7,978 | ||||||
|
Total liabilities |
1,876,408 | 1,907,407 | ||||||
|
STOCKHOLDERS' EQUITY |
||||||||
|
Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 8,857,220 and 8,892,167 shares as of September 30, 2026 and 2025, respectively |
17,714 | 17,784 | ||||||
|
Additional paid-in capital |
12,135 | 12,798 | ||||||
|
Retained earnings |
208,604 | 191,235 | ||||||
|
Accumulated other comprehensive (loss) |
(32,699 | ) | (21,225 | ) | ||||
|
Total stockholders' equity |
205,754 | 200,592 | ||||||
|
Total liabilities and stockholders' equity |
$ | 2,082,162 | $ | 2,107,999 | ||||
|
AMES NATIONAL CORPORATION AND SUBSIDIARIES |
|
Consolidated Statements of Income (unaudited) |
|
(in thousands, except per share data) |
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Interest and dividend income: |
||||||||||||||||
|
Loans, including fees |
$ | 17,899 | $ | 17,409 | $ | 52,046 | $ | 50,750 | ||||||||
|
Securities: |
||||||||||||||||
|
Taxable |
4,794 | 3,344 | 13,391 | 9,300 | ||||||||||||
|
Tax-exempt |
386 | 411 | 1,218 | 1,314 | ||||||||||||
|
Other interest and dividend income |
554 | 689 | 2,472 | 3,092 | ||||||||||||
|
Total interest and dividend income |
23,633 | 21,853 | 69,127 | 64,456 | ||||||||||||
|
Interest expense: |
||||||||||||||||
|
Deposits |
6,372 | 7,173 | 19,188 | 21,979 | ||||||||||||
|
Other borrowed funds |
304 | 631 | 1,169 | 2,047 | ||||||||||||
|
Total interest expense |
6,676 | 7,804 | 20,357 | 24,026 | ||||||||||||
|
Net interest income |
16,957 | 14,049 | 48,770 | 40,430 | ||||||||||||
|
Credit loss expense (benefit) |
66 | 627 | (73 | ) | 1,697 | |||||||||||
|
Net interest income after credit loss expense (benefit) |
16,891 | 13,422 | 48,843 | 38,733 | ||||||||||||
|
Noninterest income: |
||||||||||||||||
|
Wealth management income |
2,094 | 1,374 | 5,277 | 4,336 | ||||||||||||
|
Service fees |
395 | 402 | 1,144 | 1,150 | ||||||||||||
|
Securities gains (losses), net |
- | - | (6 | ) | - | |||||||||||
|
Gain on sale of loans held for sale |
183 | 170 | 478 | 395 | ||||||||||||
|
Merchant and card fees |
320 | 342 | 992 | 1,082 | ||||||||||||
|
Other noninterest income |
471 | 246 | 1,065 | 759 | ||||||||||||
|
Total noninterest income |
3,463 | 2,534 | 8,950 | 7,722 | ||||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits |
6,913 | 6,374 | 20,701 | 19,226 | ||||||||||||
|
Data processing |
1,409 | 1,497 | 4,423 | 4,305 | ||||||||||||
|
Occupancy expenses, net |
832 | 754 | 2,349 | 2,254 | ||||||||||||
|
FDIC insurance assessments |
239 | 253 | 725 | 788 | ||||||||||||
|
Professional fees |
1,020 | 412 | 2,700 | 1,437 | ||||||||||||
|
Business development |
367 | 335 | 1,003 | 1,018 | ||||||||||||
|
Intangible asset amortization |
68 | 77 | 205 | 231 | ||||||||||||
|
New market tax credit projects amortization |
18 | 192 | 52 | 575 | ||||||||||||
|
Other operating expenses, net |
359 | 347 | 1,108 | 1,033 | ||||||||||||
|
Total noninterest expense |
11,225 | 10,241 | 33,266 | 30,867 | ||||||||||||
|
Income before income taxes |
9,129 | 5,715 | 24,527 | 15,588 | ||||||||||||
|
Provision for income taxes |
2,081 | 1,156 | 5,588 | 3,075 | ||||||||||||
|
Net income |
$ | 7,048 | $ | 4,559 | $ | 18,939 | $ | 12,513 | ||||||||
|
Basic and diluted earnings per share |
$ | 0.80 | $ | 0.51 | $ | 2.14 | $ | 1.41 | ||||||||
|
Dividends declared per share |
$ | 0.24 | $ | 0.20 | $ | 0.72 | $ | 0.40 | ||||||||
| Average number of shares outstanding - basic and diluted | 8,857,220 | 8,894,152 | 8,857,220 | 8,903,933 | ||||||||||||
ASSET QUALITY (unaudited)
|
As of |
||||||||||||||||||||
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
|
Loan risk rating by category (end of period): |
||||||||||||||||||||
|
Pass |
$ | 1,106,219 | $ | 1,097,903 | $ | 1,095,929 | $ | 1,119,323 | $ | 1,118,151 | ||||||||||
|
Watch |
102,212 | 100,499 | 130,849 | 120,614 | 125,849 | |||||||||||||||
|
Special Mention |
- | - | 1,005 | 1,014 | 1,023 | |||||||||||||||
|
Substandard |
51,950 | 50,743 | 34,814 | 42,203 | 29,726 | |||||||||||||||
|
Substandard - Impaired |
16,511 | 19,132 | 19,574 | 14,620 | 18,819 | |||||||||||||||
|
Total Loans |
1,276,892 | 1,268,277 | 1,282,171 | 1,297,774 | 1,293,568 | |||||||||||||||
|
Unallocated portfolio layer basis adjustments |
- | 26 | 75 | 145 | 176 | |||||||||||||||
|
Less allowance for credit losses |
(16,706 | ) | (17,307 | ) | (17,419 | ) | (17,697 | ) | (17,950 | ) | ||||||||||
|
Loans receivable, net |
$ | 1,260,186 | $ | 1,250,996 | $ | 1,264,827 | $ | 1,280,222 | $ | 1,275,794 | ||||||||||
|
Nonperforming assets: |
||||||||||||||||||||
|
Non-accrual loans |
$ | 16,983 | $ | 19,606 | $ | 20,087 | $ | 15,133 | $ | 19,342 | ||||||||||
|
Accruing loans past due 90 days or more |
27 | 35 | 35 | 328 | 174 | |||||||||||||||
|
Other real estate owned |
- | - | 212 | 204 | 204 | |||||||||||||||
|
Total nonperforming assets |
$ | 17,010 | $ | 19,641 | $ | 20,334 | $ | 15,665 | $ | 19,720 | ||||||||||
|
Three months ended |
||||||||||||||||||||
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
|
Allowance for credit losses - loans: |
||||||||||||||||||||
|
Beginning balance |
$ | 17,307 | $ | 17,419 | $ | 17,697 | $ | 17,950 | $ | 16,971 | ||||||||||
|
Credit loss expense (benefit) |
144 | 143 | (310 | ) | (708 | ) | 635 | |||||||||||||
|
Recoveries of loans charged-off |
13 | 29 | 38 | 818 | 351 | |||||||||||||||
|
Loans charged-off |
(758 | ) | (284 | ) | (6 | ) | (363 | ) | (7 | ) | ||||||||||
|
Ending balance |
$ | 16,706 | $ | 17,307 | $ | 17,419 | $ | 17,697 | $ | 17,950 | ||||||||||
|
Allowance for credit losses - unfunded commitments: |
||||||||||||||||||||
|
Beginning balance |
$ | 1,012 | $ | 947 | $ | 984 | $ | 937 | $ | 944 | ||||||||||
|
Credit loss expense (benefit) |
(78 | ) | 65 | (37 | ) | 47 | (7 | ) | ||||||||||||
|
Ending balance |
$ | 934 | $ | 1,012 | $ | 947 | $ | 984 | $ | 937 | ||||||||||
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.
|
AVERAGE BALANCE SHEETS AND INTEREST RATES |
||||||||||||||||||||||||
|
Three Months Ended September 30, |
||||||||||||||||||||||||
|
2026 |
2025 |
|||||||||||||||||||||||
|
Average |
Revenue/ |
Yield/ |
Average |
Revenue/ |
Yield/ |
|||||||||||||||||||
|
balance |
expense |
rate |
balance |
expense |
rate |
|||||||||||||||||||
|
ASSETS |
||||||||||||||||||||||||
|
(dollars in thousands) |
||||||||||||||||||||||||
|
Interest-earning assets |
||||||||||||||||||||||||
|
Loans (1) |
||||||||||||||||||||||||
|
Commercial |
$ | 91,385 | $ | 1,418 | 6.21 | % | $ | 95,115 | $ | 1,533 | 6.45 | % | ||||||||||||
|
Agricultural |
118,789 | 1,945 | 6.55 | % | 125,778 | 2,218 | 7.05 | % | ||||||||||||||||
|
Real estate |
1,050,837 | 14,349 | 5.46 | % | 1,054,016 | 13,430 | 5.10 | % | ||||||||||||||||
|
Consumer and other |
14,131 | 187 | 5.29 | % | 16,769 | 228 | 5.44 | % | ||||||||||||||||
|
Total loans (including fees) |
1,275,142 | 17,899 | 5.61 | % | 1,291,678 | 17,409 | 5.39 | % | ||||||||||||||||
|
Investment securities |
||||||||||||||||||||||||
|
Taxable |
625,081 | 4,794 | 3.07 | % | 568,730 | 3,344 | 2.35 | % | ||||||||||||||||
|
Tax-exempt (2) |
64,599 | 489 | 3.03 | % | 75,281 | 520 | 2.77 | % | ||||||||||||||||
|
Total investment securities |
689,680 | 5,283 | 3.06 | % | 644,011 | 3,864 | 2.40 | % | ||||||||||||||||
|
Interest-bearing deposits with banks and federal funds sold |
56,965 | 554 | 3.89 | % | 65,313 | 689 | 4.22 | % | ||||||||||||||||
|
Total interest-earning assets |
2,021,787 | $ | 23,736 | 4.70 | % | 2,001,002 | $ | 21,962 | 4.39 | % | ||||||||||||||
|
Noninterest-earning assets |
65,361 | 65,634 | ||||||||||||||||||||||
|
TOTAL ASSETS |
$ | 2,087,148 | $ | 2,066,636 | ||||||||||||||||||||
(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%.
|
AVERAGE BALANCE SHEETS AND INTEREST RATES |
||||||||||||||||||||||||
|
Three Months Ended September 30, |
||||||||||||||||||||||||
|
2026 |
2025 |
|||||||||||||||||||||||
|
Average |
Revenue/ |
Yield/ |
Average |
Revenue/ |
Yield/ |
|||||||||||||||||||
|
balance |
expense |
rate |
balance |
expense |
rate |
|||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||||||||||||||
|
(dollars in thousands) |
||||||||||||||||||||||||
|
Interest-bearing liabilities |
||||||||||||||||||||||||
|
Deposits |
||||||||||||||||||||||||
|
Interest-bearing checking, savings accounts and money markets |
$ | 1,157,505 | $ | 3,636 | 1.26 | % | $ | 1,140,317 | $ | 4,031 | 1.41 | % | ||||||||||||
|
Time deposits |
319,608 | 2,736 | 3.42 | % | 336,692 | 3,142 | 3.73 | % | ||||||||||||||||
|
Total deposits |
1,477,113 | 6,372 | 1.73 | % | 1,477,009 | 7,173 | 1.94 | % | ||||||||||||||||
|
Other borrowed funds |
39,654 | 304 | 3.07 | % | 71,223 | 631 | 3.54 | % | ||||||||||||||||
|
Total interest-bearing liabilities |
1,516,767 | 6,676 | 1.76 | % | 1,548,232 | 7,804 | 2.02 | % | ||||||||||||||||
|
Noninterest-bearing liabilities |
||||||||||||||||||||||||
|
Noninterest-bearing checking |
343,695 | 310,424 | ||||||||||||||||||||||
|
Other liabilities |
12,845 | 12,217 | ||||||||||||||||||||||
|
Stockholders' equity |
213,841 | 195,763 | ||||||||||||||||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ | 2,087,148 | $ | 2,066,636 | ||||||||||||||||||||
|
Net interest income (FTE)(3) |
$ | 17,060 | $ | 14,158 | ||||||||||||||||||||
|
Net interest spread (FTE) |
2.94 | % | 2.37 | % | ||||||||||||||||||||
|
Net interest margin (FTE)(3) |
3.38 | % | 2.83 | % | ||||||||||||||||||||
(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).
|
Three Months Ended September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP: |
||||||||
|
Net interest income (GAAP) |
$ | 16,957 | $ | 14,049 | ||||
|
Tax-equivalent adjustment (1) |
103 | 109 | ||||||
|
Net interest income on an FTE basis (non-GAAP) |
17,060 | 14,158 | ||||||
|
Average interest-earning assets |
$ | 2,021,787 | $ | 2,001,002 | ||||
|
Net interest margin on an FTE basis (non-GAAP) |
3.38 | % | 2.83 | % | ||||
(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.