Ames National Corporation (ATLO): Business Model Canvas [11-2024 Updated]
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Ames National Corporation (ATLO) Bundle
In the competitive landscape of financial services, Ames National Corporation (ATLO) stands out with a well-defined business model that intricately weaves together its core activities and strategic partnerships. This Business Model Canvas highlights how ATLO delivers value through personalized services, strong customer relationships, and a diverse revenue stream. Dive deeper to discover the key elements that drive this institution's success and how it caters to the unique needs of its clients.
Ames National Corporation (ATLO) - Business Model: Key Partnerships
Collaborations with local banks and financial institutions
Ames National Corporation (ATLO) maintains significant partnerships with various local banks and financial institutions. As of September 30, 2024, total deposits reached $1.80 billion, reflecting a slight decrease from $1.81 billion as of December 31, 2023. These collaborations allow ATLO to leverage shared resources, enhance liquidity, and diversify their financial products.
Partnerships with government agencies for loan guarantees
ATLO actively engages with government agencies to secure loan guarantees, which bolster its lending capabilities. The company’s credit loss expense for loans was reported at $792 thousand for the nine months ended September 30, 2024, a significant increase from $80 thousand in the same period of 2023. This partnership strategy aids in mitigating risks associated with lending, particularly in economically volatile environments.
Engagement with real estate agencies for property assessments
Real estate agencies play a crucial role in ATLO's business model, particularly in property assessments for its lending operations. The loan portfolio, net of the allowance for credit losses, totaled $1.296 billion as of September 30, 2024. This collaboration ensures accurate valuations, enabling ATLO to make informed lending decisions and manage its real estate exposure effectively.
| Partnership Type | Current Status | Financial Impact |
|---|---|---|
| Local Banks | Active | Total deposits: $1.80 billion |
| Government Agencies | Engaged | Credit loss expense: $792 thousand |
| Real Estate Agencies | Ongoing | Loan portfolio: $1.296 billion |
Ames National Corporation (ATLO) - Business Model: Key Activities
Origination and underwriting of loans
Ames National Corporation's loan portfolio totaled $1.296 billion as of September 30, 2024, up from $1.278 billion as of December 31, 2023. The company's net loans represent 61% of its total assets.
The credit loss expense for loans was $792,000 for the nine months ended September 30, 2024, compared to $80,000 in the same period in 2023. The allowance for credit losses for loans held for investment was $17.56 million as of September 30, 2024.
Loan originations included $17.32 million in loans held for sale during the nine months ended September 30, 2024, compared to $13.48 million for the same period in 2023.
Wealth management and financial advisory services
The wealth management segment generated $3.913 million in income for the nine months ended September 30, 2024, an increase from $3.507 million for the same period in 2023. The company employed 240 full-time equivalent individuals in its banking operations, with additional staff dedicated to financial advisory services.
Service fees from various financial services amounted to $1.062 million for the nine months ended September 30, 2024, compared to $1.000 million for the same period in 2023.
| Service Type | Income (2024) | Income (2023) |
|---|---|---|
| Wealth Management | $3.913 million | $3.507 million |
| Service Fees | $1.062 million | $1.000 million |
Risk management and credit loss assessment
The company's 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, compared to 1.08% at December 31, 2023. This rate is significantly higher than the Iowa State Average peer group of FDIC insured institutions, which stood at 0.49% as of June 30, 2024.
Substandard-impaired loans totaled $16.9 million as of September 30, 2024, an increase from $13.2 million at December 31, 2023. The increase was primarily due to downgrades in commercial real estate and commercial operating loan portfolios.
The allowance for credit losses for off-balance-sheet credit exposures was $1.0 million as of September 30, 2024.
Ames National Corporation (ATLO) - Business Model: Key Resources
Strong capital base and liquidity
Ames National Corporation maintains a robust capital structure, with total stockholders' equity amounting to $183.4 million as of September 30, 2024, an increase from $165.8 million at December 31, 2023. This represents a growth of 10.0%.
The company’s liquidity position is supported by total liquid assets of $59.0 million as of September 30, 2024, compared to $55.1 million at December 31, 2023. Additionally, Ames National has access to outstanding lines of credit with the Federal Home Loan Bank (FHLB) of Des Moines totaling $201.0 million, with $72.5 million drawn as of September 30, 2024.
Experienced management team
The management team at Ames National Corporation is seasoned, with a focus on local decision-making to enhance customer service and operational efficiency. The company employs 240 full-time equivalent individuals across its banking subsidiaries, supported by an additional 23 individuals in various corporate roles such as financial reporting, human resources, and compliance.
This managerial structure is designed to provide faster response times and flexibility in product offerings, which is crucial in a competitive banking environment.
Advanced technology for loan processing and risk assessment
Ames National Corporation leverages advanced technology to enhance its loan processing capabilities and risk assessment methodologies. As of September 30, 2024, the company reported a loan portfolio, net of allowance for credit losses, totaling $1.296 billion, an increase from $1.278 billion at December 31, 2023.
The company utilizes sophisticated models to estimate expected credit losses, which incorporate economic forecasts, historical loss data, and borrower-specific risk characteristics. This technology enables the company to maintain a credit loss allowance of $17.2 million as of September 30, 2024.
| Key Resource | Details |
|---|---|
| Stockholders' Equity | $183.4 million (as of September 30, 2024) |
| Total Liquid Assets | $59.0 million (as of September 30, 2024) |
| FHLB Credit Lines | $201.0 million available, $72.5 million drawn (as of September 30, 2024) |
| Employee Count | 240 full-time equivalent employees + 23 corporate staff |
| Loan Portfolio | $1.296 billion (net of allowance for credit losses as of September 30, 2024) |
| Credit Loss Allowance | $17.2 million (as of September 30, 2024) |
Ames National Corporation (ATLO) - Business Model: Value Propositions
Competitive interest rates on loans
Ames National Corporation offers competitive interest rates on a variety of loan products, which enhances its appeal to customers. As of September 30, 2024, the total loans (including fees) amounted to $1.303 billion, with an average yield of 5.14%. This represents an increase compared to the 4.67% yield from the previous year.
Specific loan categories include:
- Commercial Loans: Average yield of 6.36%
- Agricultural Loans: Average yield of 7.68%
- Real Estate Loans: Average yield of 4.75%
- Consumer Loans: Average yield of 5.16%
Personalized customer service with local decision-making
The company emphasizes personalized customer service, which is critical in building long-term relationships with clients. Local decision-making processes allow for quicker responses and tailored financial solutions. As of September 30, 2024, Ames National Corporation maintained a net income of $6.705 million, reflecting its commitment to customer satisfaction and operational efficiency.
Customer service metrics include:
- Average response time for loan approvals: 48 hours
- Customer satisfaction rating: 92%
- Number of local branches: 15
Comprehensive wealth management services
Ames National Corporation provides a suite of comprehensive wealth management services, catering to the financial needs of its clients. As of September 30, 2024, the total assets under management reached $688.6 million. The firm offers investment advisory services, retirement planning, and estate planning, tailored to individual client goals.
Wealth management metrics include:
- Investment performance (average annual return): 8.2%
- Number of clients served: 3,500
- Client retention rate: 95%
| Service | Assets Under Management | Average Annual Return | Client Count |
|---|---|---|---|
| Investment Advisory | $450 million | 8.5% | 2,000 |
| Retirement Planning | $150 million | 7.8% | 1,000 |
| Estate Planning | $88.6 million | 8.0% | 500 |
Ames National Corporation (ATLO) - Business Model: Customer Relationships
Focus on long-term relationships with clients
Ames National Corporation (ATLO) emphasizes building long-term relationships with its clients to enhance customer loyalty and retention. As of September 30, 2024, the company reported total assets of $2.1 billion, reflecting its commitment to maintaining a strong financial foundation to support customer needs. The bank has positioned itself as a trusted financial partner, focusing on community engagement and personalized service to foster enduring client relationships.
Regular communication and updates on financial products
ATLO maintains a proactive approach to communication with its clients, providing regular updates on financial products and services. The company’s net interest income for the nine months ended September 30, 2024, totaled $32.9 million, which is indicative of its effective engagement strategies that keep clients informed and involved. Additionally, ATLO reported a net interest margin of 2.16% for the same period, showcasing its ability to effectively manage interest income and expenses in a competitive market.
Personalized financial planning and advisory services
Ames National Corporation offers personalized financial planning and advisory services tailored to the unique needs of its clients. The wealth management income for the nine months ended September 30, 2024, reached $3.9 million, reflecting the success of these personalized services in enhancing client satisfaction and retention. The company’s approach includes:
- Custom financial solutions based on individual client assessments.
- Regular financial reviews to adjust strategies as needed.
- Access to a range of investment products designed to meet diverse client goals.
Overall, the focus on personalized service not only strengthens client relationships but also contributes significantly to the company’s revenue streams.
| Metric | Value |
|---|---|
| Total Assets (as of Sept 30, 2024) | $2.1 billion |
| Net Interest Income (for nine months ended Sept 30, 2024) | $32.9 million |
| Net Interest Margin (for nine months ended Sept 30, 2024) | 2.16% |
| Wealth Management Income (for nine months ended Sept 30, 2024) | $3.9 million |
Ames National Corporation (ATLO) - Business Model: Channels
Direct banking services through branch locations
Ames National Corporation operates a network of branch locations that provide direct banking services to customers. As of September 30, 2024, the total assets of Ames National Corporation were approximately $2.127 billion. The company focuses on personal banking, commercial banking, and agricultural loans, with a significant portion of its loan portfolio consisting of real estate loans, which totaled $1.312 billion. The branches offer services including checking and savings accounts, loan origination, and financial advice, contributing to a customer-centric approach that enhances the overall banking experience.
Online banking platform for easy access to services
Ames National Corporation has developed a robust online banking platform that facilitates easy access to banking services. This platform allows customers to manage their accounts, transfer funds, pay bills, and apply for loans from anywhere at any time. As of September 30, 2024, the company reported interest income of $48.8 million from its average earning assets, which include its online banking services. The online platform is designed to improve customer engagement and streamline banking processes, catering to the growing demand for digital banking solutions.
Marketing through local community events and initiatives
Ames National Corporation actively engages with the local community through various marketing initiatives and events. The company participates in community events to foster relationships and increase brand visibility. For example, the company has sponsored local fairs and educational programs, enhancing its reputation as a community-oriented institution. Cash dividends declared by the company were $1.798 million for the three months ended September 30, 2024, demonstrating its commitment to returning value to shareholders while investing in community engagement efforts.
| Channel | Description | Key Metrics |
|---|---|---|
| Branch Locations | Direct banking services offered at multiple locations. | Total Assets: $2.127 billion (as of Sept 30, 2024) |
| Online Banking | Access to banking services via a digital platform. | Interest Income: $48.8 million (average earning assets) |
| Community Marketing | Engagement through local events and sponsorships. | Cash Dividends: $1.798 million (Q3 2024) |
Ames National Corporation (ATLO) - Business Model: Customer Segments
Individual consumers seeking personal loans
Ames National Corporation (ATLO) provides personal loans to individual consumers, which is a significant segment of its customer base. As of September 30, 2024, the total loans under the consumer and other category reached approximately $16.7 million, reflecting a yield of 5.00%. The underwriting process for personal loans includes comprehensive credit assessments based on the applicant's credit history and repayment capabilities, ensuring a tailored approach to meet individual financial needs.
Small to medium-sized businesses requiring financing
The small to medium-sized business (SMB) sector forms a crucial part of ATLO's customer segments. As of September 30, 2024, loans to commercial entities totaled approximately $1.3 billion, with a yield of 5.14%. This segment includes various financing options tailored to meet the operational and growth requirements of SMBs, encompassing working capital loans, equipment financing, and real estate loans. The bank's commitment to local businesses fosters community growth and economic development.
Agricultural clients needing specialized loans
Agricultural clients represent a specialized segment of ATLO's customer base. As of September 30, 2024, the total agricultural loans amounted to approximately $118.9 million, with an average yield of 7.55%. These loans are designed to support farmers and agribusinesses in acquiring necessary resources, including crop inputs and equipment. The bank utilizes a risk assessment model tailored to the agricultural sector, which considers factors such as crop yield forecasts and market conditions.
| Customer Segment | Total Loans (in millions) | Average Yield (%) |
|---|---|---|
| Individual Consumers | $16.7 | 5.00% |
| Small to Medium-Sized Businesses | $1,300.0 | 5.14% |
| Agricultural Clients | $118.9 | 7.55% |
Ames National Corporation (ATLO) - Business Model: Cost Structure
Interest expenses related to deposits and borrowings
For the nine months ended September 30, 2024, the interest expense associated with total interest-bearing liabilities was $28.5 million, reflecting an increase of 19.3% compared to the same period in 2023. The average interest rate on these liabilities rose to 2.36% from 1.74% during the same period. Total interest-bearing deposits amounted to $1.471 billion, while other borrowed funds were recorded at $135.3 million.
Operational costs including salaries and benefits
In the third quarter of 2024, Ames National Corporation reported noninterest expenses totaling $10.5 million, which included:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Salaries and employee benefits | $6,291 | $5,902 |
| Data processing | $1,475 | $1,497 |
| Occupancy expenses, net | $745 | $671 |
| FDIC insurance assessments | $281 | $284 |
| Professional fees | $867 | $545 |
| Other operating expenses, net | $268 | $270 |
The total operational costs for the nine months ended September 30, 2024, reached $31.4 million, up from $30.1 million in 2023.
Expenses for technology and compliance functions
Technology and compliance expenses included in the operational costs for the nine months ending September 30, 2024, were approximately $4.5 million, which covers costs related to data processing and compliance management systems.
Ames National Corporation (ATLO) - Business Model: Revenue Streams
Interest income from loans issued
As of September 30, 2024, Ames National Corporation reported total loans (including fees) amounting to $1.303 billion, generating interest income of $16.751 million for the three months ended September 30, 2024, reflecting a yield of 5.14%. This represents an increase in interest income of 10.4% compared to the same period in 2023, primarily driven by higher average rates and growth in the loan portfolio.
Fees from wealth management services
For the nine months ended September 30, 2024, fees from wealth management services contributed significantly to the corporation's revenue streams. Specific fee income figures are not disclosed in detail; however, the overall wealth management segment has shown resilience amidst fluctuating market conditions, contributing to a steady income flow.
Gains from the sale of loans and securities
Ames National Corporation realized gains from the sale of loans and securities totaling $2.049 million for the nine months ended September 30, 2024. The company also reported gross realized losses on securities available-for-sale amounting to $165 thousand during the same period.
| Revenue Source | Amount (in millions) | Period | Yield/Rate |
|---|---|---|---|
| Interest income from loans | $16.751 | Q3 2024 | 5.14% |
| Fees from wealth management services | Not Disclosed | 9 months ended September 30, 2024 | N/A |
| Gains from loans and securities sales | $2.049 | 9 months ended September 30, 2024 | N/A |
| Gross realized losses on securities | ($0.165) | 9 months ended September 30, 2024 | N/A |
Updated on 16 Nov 2024
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.