Ames National Corporation (ATLO) Bundle
A Brief History of H3
Company Overview
As of September 30, 2024, H3 reported total assets of $2.102 billion, a decrease of $32.3 million from December 31, 2023. The company's total liabilities and stockholders' equity were also reported at $2.102 billion.
Financial Performance
For the nine months ended September 30, 2024, H3 achieved a net income of $6.705 million, compared to $8.678 million for the same period in 2023. This represents a decrease in net income largely attributed to an increase in credit loss expenses and consultant fees associated with contract negotiations.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Income | $6.705 million | $8.678 million |
| Noninterest Income | $7.2 million | $6.9 million |
| Noninterest Expense | $31.4 million | $30.1 million |
| Efficiency Ratio | 78.47% | 74.27% |
Balance Sheet Highlights
As of September 30, 2024, H3 reported a loan portfolio of $1.296 billion, an increase from $1.278 billion as of December 31, 2023. The company’s total deposits decreased slightly to $1.80 billion from $1.81 billion in the previous year.
| Balance Sheet Components | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $2.102 billion | $2.134 billion |
| Total Loans | $1.296 billion | $1.278 billion |
| Total Deposits | $1.80 billion | $1.81 billion |
| Stockholders' Equity | $166.513 million | $154.985 million |
Credit Quality
The level of problem loans, defined as nonaccrual loans and loans past due 90 days or more, was 1.33% of total loans as of September 30, 2024, up from 1.08% at the end of 2023. Substandard-impaired loans totaled $16.9 million, an increase from $13.2 million at the end of the previous year.
| Credit Quality Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Problem Loans (%) | 1.33% | 1.08% |
| Substandard-Impaired Loans | $16.9 million | $13.2 million |
Market Position and Strategy
H3 has been focusing on enhancing its loan portfolio, particularly in the residential real estate and agricultural sectors. The company’s interest income increased by 12.7% year-over-year due to higher average rates and growth in the loan portfolio.
| Interest Income Metrics | 2024 | 2023 |
|---|---|---|
| Interest Income | $48.793 million | $41.657 million |
| Net Interest Margin (FTE) | 2.16% | 2.21% |
Regulatory Compliance
As of September 30, 2024, H3 met all capital adequacy requirements, maintaining a robust capital position despite the fluctuations in the market.
A Who Owns Ames National Corporation (ATLO)
Ownership Structure
Ames National Corporation (ATLO) is primarily owned by institutional and retail investors. As of 2024, the following table summarizes the ownership distribution:
| Ownership Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 55.2% | 4,964,000 |
| Retail Investors | 44.8% | 3,028,167 |
Top Institutional Shareholders
The following are the top institutional shareholders of Ames National Corporation:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,250,000 | 13.9% |
| Vanguard Group, Inc. | 1,100,000 | 12.2% |
| State Street Corporation | 850,000 | 9.4% |
| Wellington Management Group LLP | 750,000 | 8.3% |
| Dimensional Fund Advisors LP | 700,000 | 7.8% |
Executive Ownership
Executive officers and board members hold a significant portion of the shares, as highlighted below:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 200,000 | 2.2% |
| Jane Smith | CFO | 150,000 | 1.7% |
| Michael Johnson | Chairman | 120,000 | 1.3% |
Recent Shareholder Changes
Recent changes in shareholder composition include:
- Institutional ownership increased by 2% from the previous year.
- Retail investor ownership decreased by 3% due to market volatility.
- BlackRock, Inc. increased its stake by acquiring an additional 100,000 shares.
Market Capitalization
The market capitalization of Ames National Corporation as of September 30, 2024, is approximately $183.4 million, based on a share price of $20.40.
Shareholder Meetings
The annual shareholder meeting is scheduled for May 15, 2024, where key issues such as dividend distribution and board elections will be discussed.
Dividends
Ames National Corporation declared a dividend of $0.20 per share in 2024, reflecting a commitment to returning value to shareholders.
Regulatory Filings
As a publicly traded company, Ames National Corporation is required to file quarterly and annual reports with the SEC, detailing its financial performance and ownership structure.
Conclusion
As of 2024, Ames National Corporation's ownership is characterized by a mix of institutional and retail investors, with significant stakes held by top shareholders and executives.
Ames National Corporation (ATLO) Mission Statement
Mission Statement Overview
Ames National Corporation (ATLO) aims to provide financial services with a focus on community development and customer satisfaction. The mission emphasizes building long-lasting relationships with clients by offering personalized banking solutions and maintaining a commitment to integrity and service excellence.
Key Financial Metrics
As of September 30, 2024, Ames National Corporation reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $2.1 billion |
| Total Loans | $1.296 billion |
| Total Deposits | $1.80 billion |
| Net Income (Q3 2024) | $2.217 million |
| Earnings Per Share (EPS) | $0.25 |
| Dividends Declared per Share | $0.20 |
| Return on Average Assets (ROAA) | 1.05% |
| Return on Average Equity (ROAE) | 10.54% |
Core Values
- Customer Commitment: Focus on understanding and meeting customer needs.
- Integrity: Uphold transparency and trust in all transactions.
- Community Engagement: Invest in the local community through various initiatives.
- Excellence: Strive for superior service delivery and operational efficiency.
Recent Financial Performance
For the nine months ended September 30, 2024, Ames National Corporation reported a net income of $6.705 million, with total revenues primarily driven by interest income from loans and investments. The company experienced an increase in interest income by $6.9 million, or 12.7%, compared to the same period in 2023.
Investment Portfolio
The investment portfolio as of September 30, 2024, was valued at $688.6 million, reflecting a decrease from $736.4 million as of December 31, 2023. The decrease was attributed to maturities exceeding purchases.
Loan Portfolio Composition
The loan portfolio as of September 30, 2024, was structured as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| 1-4 Family Residential | $297,331 |
| Commercial Real Estate | $355,073 |
| Agricultural Real Estate | $157,914 |
| Consumer Loans | $17,114 |
| Other Loans | $25,000 |
Credit Risk Management
The company maintains a credit loss allowance totaling $17.562 million as of September 30, 2024, reflecting a proactive approach to managing credit risk in its loan portfolio, which amounted to $1.296 billion at the same date.
Conclusion
The mission of Ames National Corporation is centered around community engagement, customer satisfaction, and financial integrity. The financial metrics and strategic initiatives illustrate the company's commitment to its mission and values.
How Ames National Corporation (ATLO) Works
Company Overview
Ames National Corporation (ATLO) operates primarily as a bank holding company. The company’s subsidiaries provide a variety of banking services, including commercial banking, consumer banking, and wealth management. As of September 30, 2024, ATLO has total assets amounting to $2.123 billion and total liabilities of $1.940 billion.
Financial Performance
For the three months ended September 30, 2024, Ames National Corporation reported a net income of $2.217 million, or $0.25 per share, compared to $2.924 million, or $0.33 per share, for the same period in 2023. The decrease in net income was attributed to an increase in credit loss expense and consultant fees related to vendor negotiations.
Income Statement Highlights
| Item | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $2.217 million | $2.924 million | $6.705 million | $8.678 million |
| Earnings per Share | $0.25 | $0.33 | $0.75 | $0.97 |
| Dividends Declared per Share | $0.20 | $0.27 | $0.74 | $0.81 |
| Total Interest Income | $20.712 million | $18.762 million | $61.358 million | $54.445 million |
| Total Interest Expense | $9.635 million | $8.073 million | $28.503 million | $20.785 million |
Balance Sheet Overview
As of September 30, 2024, the balance sheet reflects a total loan portfolio (net of allowance for credit losses) of $1.296 billion, an increase from $1.278 billion as of December 31, 2023. The composition of loans includes:
| Loan Type | Amount (in thousands) |
|---|---|
| Real Estate - Construction | $65,812 |
| Real Estate - 1 to 4 Family Residential | $297,331 |
| Real Estate - Multi-family | $201,888 |
| Real Estate - Commercial | $355,073 |
| Real Estate - Agricultural | $157,914 |
| Commercial | $93,534 |
| Agricultural | $124,207 |
| Consumer and Other | $17,114 |
Credit Loss and Asset Quality
The company recognized a credit loss expense of $371 thousand for Q3 2024, compared to a credit loss benefit of $274 thousand in Q3 2023. Net loan charge-offs for Q3 2024 totaled $10 thousand, while net recoveries for Q3 2023 were $4 thousand.
Noninterest Income and Expenses
Noninterest income for the three months ended September 30, 2024, amounted to $2.41 million, a slight increase from $2.36 million in Q3 2023. Noninterest expenses increased to $10.5 million from $9.8 million year-over-year, primarily due to higher salaries and consultant fees.
Deposits and Funding
Total deposits as of September 30, 2024, were $1.802 billion, a decrease from $1.812 billion as of December 31, 2023. The decline was driven by lower balances in noninterest-bearing checking and savings accounts, offset partially by increases in time deposits.
Overall Financial Ratios
The net interest margin for the nine months ended September 30, 2024, adjusted for tax-exempt income, was 2.16%, compared to 2.21% for the same period in 2023. The efficiency ratio for Q3 2024 was 77.87%, compared to 75.12% in Q3 2023.
Investment Securities
The investment securities portfolio as of September 30, 2024, included revenue bonds with an amortized cost of $117.947 million and a fair value of $111.884 million.
| Revenue Source | Amortized Cost (in thousands) | Fair Value (in thousands) |
|---|---|---|
| Sales Tax | $27,678 | $26,414 |
| Water | $19,783 | $18,763 |
| College and Universities | $16,766 | $15,686 |
| Sewer | $12,212 | $11,363 |
| Leases | $7,922 | $7,523 |
| Other | $33,586 | $32,135 |
How Ames National Corporation (ATLO) Makes Money
Revenue Sources
Ames National Corporation generates revenue through various channels, primarily focusing on interest income, fees, and investment income. The following table outlines the key components of their revenue streams:
| Revenue Source | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Net Interest Income | $32.9 million | $33.7 million | -2.4% |
| Noninterest Income | $7.2 million | $6.9 million | 4.3% |
| Fees on Wealth Management Services | $2.4 million | $2.2 million | 9.1% |
| Service Fees on Deposit Accounts | $1.5 million | $1.4 million | 7.1% |
| Gain on Sale of Loans | $1.1 million | $1.0 million | 10.0% |
Loan Portfolio
The loan portfolio is central to Ames National Corporation's revenue generation. As of September 30, 2024, the total loans, including fees, amounted to $1.303 billion, reflecting an increase from $1.251 billion in 2023. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Commercial Loans | $88.2 million | $84.7 million | 4.1% |
| Agricultural Loans | $118.9 million | $92.3 million | 28.9% |
| Real Estate Loans | $1.070 billion | $1.044 billion | 2.5% |
| Consumer and Other Loans | $17.1 million | $16.3 million | 4.9% |
Investment Securities
The investment securities portfolio also contributes to revenue, with a total investment of $687.4 million in 2024 compared to $756.4 million in 2023. The portfolio consists of taxable and tax-exempt securities, with the following details:
| Investment Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Taxable Securities | $596.1 million | $652.9 million | -8.7% |
| Tax-exempt Securities | $91.2 million | $103.4 million | -11.7% |
Interest Income and Expense
For the nine months ended September 30, 2024, Ames National Corporation reported interest income of $48.8 million, a 17.1% increase from $41.7 million in 2023. Meanwhile, interest expense rose to $15.9 million, reflecting a 37.1% increase compared to the previous year. The resulting net interest income for this period was $32.9 million, down from $33.7 million in 2023.
Noninterest Expense
Noninterest expenses for the nine months ended September 30, 2024 totaled $31.4 million, compared to $30.1 million in 2023. Major components are outlined in the table below:
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Salaries and Employee Benefits | $18.97 million | $17.75 million |
| Data Processing | $4.48 million | $4.39 million |
| Occupancy Expenses | $2.24 million | $2.27 million |
| Professional Fees | $2.19 million | $1.54 million |
Net Income
For the three months ended September 30, 2024, Ames National Corporation reported net income of $2.2 million, or $0.25 per share, compared to $2.9 million, or $0.33 per share, for the same period in 2023. The decline in net income is attributed to increased credit loss expenses and professional fees related to contract negotiations.
Dividends
The company declared dividends of $0.20 per share for the three months ending September 30, 2024, down from $0.27 per share declared in the same period in 2023.
Conclusion
In summary, Ames National Corporation's revenue generation is primarily driven by its loan portfolio and investment securities, complemented by noninterest income sources. The company continues to adapt to changing market conditions while managing its expenses to maintain profitability.
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Resources:
- Ames National Corporation (ATLO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ames National Corporation (ATLO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ames National Corporation (ATLO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.