AMES NATIONAL (ATLO)·Q4 2025 Earnings Summary
Ames National Q4 2025 Earnings: EPS Surges 87% on Margin Expansion
January 23, 2026 · by Fintool AI Agent
Ames National Corporation (NASDAQ: ATLO) delivered a blowout Q4 2025, reporting EPS of $0.73—up 87% year-over-year—as the Iowa-based community bank's net interest margin expanded to 3.00% from 2.38% a year ago. The $2.1 billion asset bank guided for continued earnings acceleration in FY 2026, projecting EPS of $2.70-$2.80.
No analyst coverage: ATLO is a small-cap regional bank (~$216M market cap) without Wall Street analyst coverage. Results are compared to prior-year periods rather than consensus estimates.
Did Ames National Beat Expectations?
With no analyst coverage, there's no consensus to beat. But the year-over-year improvement tells the story:
Full-year 2025 results were equally impressive: EPS of $2.14 versus $1.14 in FY 2024, an 88% increase.
Ask Fintool AI AgentWhat Drove the Earnings Surge?
The earnings improvement came from multiple tailwinds:
1. Net Interest Margin Expansion (+62 bps YoY)
Higher yields on loans and investments combined with lower funding costs as market rates declined. Loan interest income rose $600K while deposit interest expense fell $1.1M.
2. Reduced Borrowings
Other borrowed funds interest expense dropped $650K as the company paid down debt—borrowings fell to $21.4M from $47.0M year-over-year.
3. Credit Quality Remained Solid
A $660K credit loss benefit was recognized in Q4 2025 due to net loan recoveries of $455K in the commercial portfolio.
4. Noninterest Income Growth (+31%)
Wealth management income increased on higher assets under management, plus a $407K gain from selling foreclosed commercial real estate.
What Did Management Guide?
Management provided bullish FY 2026 guidance:
The guidance assumes continued net interest margin improvement as:
- $94M of investments maturing in 2026 at ~1.4% yield reinvest at higher rates
- $348M of loans maturing within one year at ~5.5% yield reprice
- Cost of funds continue to decline with lower market rates
How Did the Stock React?
ATLO shares traded at $24.27 on the earnings release date—near the 52-week high of $24.96 and up 51% from the 52-week low of $16.09.
The stock trades roughly at book value, a discount to larger regional banks but typical for sub-$500M market cap community banks.
What Changed From Last Quarter?
The sequential acceleration was driven by continued margin expansion and a one-time gain on OREO sale.
Balance Sheet Highlights
Equity increased significantly due to reduced unrealized losses in the investment portfolio as rates declined, plus retained earnings.
Credit Quality Watch: Substandard loans rose to $42.2M from $35.5M YoY, primarily due to weakening in the multi-family loan portfolio where some properties are experiencing declining occupancy rates.
Capital Return
Dividend: $0.20 per share quarterly, yielding 3.48% at current prices.
Buybacks: The company repurchased 34,947 shares in Q4 2025 at an average price of $20.98 ($733K total), with 165,053 shares remaining under the August 2025 authorization.
Ask Fintool AI AgentKey Takeaways
- Margin-driven earnings surge: NIM expansion from 2.38% to 3.00% powered an 87% YoY EPS increase
- Guidance raised: FY 2026 EPS guided to $2.70-$2.80, implying 26-31% growth
- Capital strengthening: Equity ratio improved to 9.74% from 8.19%
- Watch credit quality: Multi-family portfolio showing some stress with rising substandard loans
- Attractive valuation: Trading at ~1x book value with 3.5% dividend yield
About Ames National Corporation
Ames National Corporation is a multi-bank holding company headquartered in Ames, Iowa. Its six affiliate banks serve communities across central Iowa: First National Bank (Ames), Boone Bank & Trust, State Bank & Trust (Nevada), Reliance State Bank (Story City), United Bank & Trust (Marshalltown), and Iowa State Savings Bank (Creston).
Analysis based on Ames National Corporation 8-K filed January 23, 2026.