Ames National (ATLO) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $5.9 million ($0.67 per share), up from $4.5 million ($0.51 per share) in Q2 2025, driven by higher net interest income and lower funding costs.

• Six-month net income reached $11.9 million ($1.34 per share), a 49.6% increase year-over-year.

• Return on average assets improved to 1.11% for Q2 2026 from 0.85% in Q2 2025; return on average equity rose to 11.24% from 9.67%.

• Earnings growth was driven by higher net interest income from increased yields and average balances on investments, and lower cost of funds due to declining market rates and reduced borrowings.

Financial highlights

• Net interest income for Q2 2026 was $16.4 million, up 21.7% year-over-year; six-month net interest income was $31.8 million, up from $26.4 million year-over-year.

• Noninterest income increased 2.3% to $2.7 million in Q2 2026 and 5.8% for the six months, mainly from wealth management and estate/trust fees.

• Noninterest expense rose 7.8% in Q2 and 6.9% for the six months, driven by higher professional fees and salaries.

• Efficiency ratio improved to 58.52% in Q2 2026 from 64.34% in Q2 2025.

• Income tax expense for Q2 2026 was $1.8 million, with an effective tax rate of 23%.

Outlook and guidance

• Consultant fees related to contract negotiations are expected to continue through 2026.

• Management expects liquidity sources to be sufficient to support operations for the foreseeable future.

• Anticipated bonus payouts are expected as performance thresholds are met.