Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Daniel L. Krieger,
President
(515) 232-6251
APRIL 18, 2003
AMES NATIONAL CORPORATION
ANNOUNCES FIRST QUARTER 2003 FINANCIAL RESULTS
AND FORECASTED EARNINGS FOR 2003
The Company earned net income of $2,870,000, or $0.92 per share for the three
months ended March 31, 2003, compared to net income of $2,941,000, or $0.94 per
share, for the three months ended March 31, 2002, a decrease of 2%. The
Company's return on average assets was 1.67% and 1.91%, respectively, for the
three-month periods ending March 31, 2003 and 2002. The Company's return on
average equity was 11.26% and 12.26%, respectively for the three-month periods
ending March 31, 2003 and 2002. Total assets increased from $646 million for the
quarter ended March 31, 2002 to $737 million for the quarter ended March 31,
2003, an increase of 14%.
While net interest income was relatively unchanged for the first quarter of 2003
compared to the same period in 2002, non-interest expense was significantly
higher in 2003 as a result of higher overhead expenses associated with the
opening of United Bank & Trust NA (United Bank) in Marshalltown, Iowa.
Noninterest expenses for United Bank totaled $324,000 for the quarter ended
March 31, 2003. The higher non-interest expense was partially offset by higher
securities gains in the Company's investment portfolio and an increase in
secondary market fees for the first quarter of 2003 compared to the same period
a year ago. Secondary mortgage market activity continues to be strong at
affiliate banks, but is not anticipated to remain at current levels once
interest rates begin to increase.
Loans increased 12% to $340 million, a $36 million increase since March 31,
2002. Commercial real estate loans accounted for most of the growth with United
Bank generating the increase. Deposits showed a strong 16% growth over first
quarter 2002 with all interest bearing deposit categories reflecting significant
growth. United Bank has made an impact in the Marshalltown area with over $46
million in deposits since it began operations in mid June 2002.
Capital increased 8% to 103 million from one year ago, which included over $7
million in net unrealized gains on securities available for sale. Capital at the
end of March 2003, represented 14% of total assets. Ames National Corporation
stock, under the symbol ATLO, traded in the $46.05 to $48.90 range in the first
quarter of 2003 and closed at $48.90 on March 31, 2003.
Ames National Corporation is forecasting earnings for the year ending December
31, 2003 of $3.27 per share. This figure compares to the $3.63 per share earned
for the year ending December 31, 2002. Lower earnings are forecast as a result
of operating costs associated with the de novo chartering of United Bank & Trust
in Marshalltown, Iowa, and anticipation of lower net interest margins in 2003.
Ames National Corporation affiliate banks are located in Iowa and include First
National Bank, Ames; Boone Bank & Trust Co., Boone; State Bank & Trust Co.,
Nevada; Randall-Story State Bank, Story City; and United Bank & Trust,
Marshalltown.
The Company's earnings forecast for 2003 is a forward-looking statement under
the Private Securities Litigation Reform Act of 1995 that is subject to certain
risks and uncertainties that could cause the actual earnings to differ
materially from forecasted earnings. A number of factors, many of which are
beyond the Company's control, could cause actual earnings to differ
significantly from those described in this forward-looking statement. Such risks
and uncertainties with respect to the Company include those related to the
economic environment, particularly in the areas in which the Company and the
Banks operate, competitive products and pricing, fiscal and monetary policies of
the U.S. government, 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 and the availability of and
costs associated with sources of liquidity.
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AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
March 31, March 31,
Assets 2003 2002
------------------------------
Cash and due from banks ........................................................ $ 26,870,928 $ 40,864,403
Federal funds sold ............................................................. 100,320,000 60,960,000
Interest bearing deposits in financial institutions ............................ 1,000,000 600,000
Securities available-for-sale .................................................. 254,003,860 225,187,867
Loans receivable, net .......................................................... 340,383,399 304,510,264
Bank premises and equipment, net ............................................... 8,623,103 7,483,997
Accrued income receivable ...................................................... 5,701,244 5,836,053
Other assets ................................................................... 357,811 324,837
------------------------------
Total assets ....................................................... $ 737,260,345 $ 645,767,421
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Liabilities and Stockholders' Equity
Deposits:
Demand ..................................................................... $ 61,686,441 $ 51,991,931
NOW accounts ............................................................... 144,079,506 131,319,934
Savings and money market ................................................... 174,326,939 145,667,064
Time, $100,000 and over .................................................... 63,441,854 49,064,946
Other time ................................................................. 170,359,656 152,358,206
------------------------------
Total deposits ..................................................... 613,894,396 530,402,081
Federal funds purchased and securities
sold under agreements to repurchase ........................................ 13,362,019 13,830,133
Dividends payable .............................................................. 1,376,752 1,312,596
Deferred taxes ................................................................. 2,539,121 1,224,826
Accrued interest and other liabilities ......................................... 3,454,538 3,685,309
------------------------------
Total liabilities .................................................. 634,626,826 550,454,945
------------------------------
Stockholders' Equity:
Common stock, $5 par value; authorized 6,000,000 shares; issued 3,153,230
shares at March 31, 2003 and 2002; outstanding 3,128,982 and 3,125,229 at
March 31, 2003 and 2002, respectively .................................... 15,766,150 15,766,150
Surplus .................................................................... 25,354,014 25,393,028
Retained earnings .......................................................... 55,411,117 51,025,345
Treasury stock, at cost; 24,248 and 28,001 shares at
March 31, 2003 and 2002, respectively .................................... (1,333,640) (1,530,805)
Accumulated other comprehensive income - net unrealized gain
on securities available-for-sale ......................................... 7,435,878 4,658,758
------------------------------
Total stockholders' equity ......................................... 102,633,519 95,312,476
------------------------------
Total liabilities and stockholders' equity ......................... $ 737,260,345 $ 645,767,421
==============================
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AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
Three Months Ended
March 31,
2003 2002
-----------------------
Interest and dividend income:
Loans ................................................... $5,556,035 $5,865,172
Securities
Taxable ............................................... 1,883,539 1,980,131
Tax-exempt ............................................ 770,300 718,954
Federal funds sold ...................................... 163,694 200,784
Dividends ............................................... 340,665 330,803
-----------------------
8,714,233 9,095,844
-----------------------
Interest expense:
Deposits ................................................ 2,625,990 2,987,959
Other borrowed funds .................................... 64,219 74,135
-----------------------
2,690,209 3,062,094
-----------------------
Net interest income ............................... 6,024,024 6,033,750
Provision for loan losses ................................... 119,745 104,219
-----------------------
Net interest income after provision for loan losses 5,904,279 5,929,531
-----------------------
Non-interest income:
Trust department income ................................. 327,329 250,730
Service fees ............................................ 358,924 357,675
Securities gains, net ................................... 365,825 188,733
Loan and secondary market fees .......................... 248,120 135,627
Other ................................................... 295,215 190,372
-----------------------
Total non-interest income ......................... 1,595,413 1,123,137
-----------------------
Non-interest expense:
Salaries and employee benefits .......................... 2,169,684 1,782,335
Occupancy expenses ...................................... 268,608 203,362
Data processing ......................................... 467,800 404,411
Other operating expenses ................................ 591,510 542,148
-----------------------
Total non-interest expense ........................ 3,497,602 2,932,256
-----------------------
Income before income taxes ........................ 4,002,090 4,120,412
Income tax expense .......................................... 1,131,765 1,179,482
-----------------------
Net income ........................................ $2,870,325 $2,940,930
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Basic and diluted earnings per share ........................ $ 0.92 $ 0.94
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Declared dividends per share ................................ $ 0.44 $ 0.42
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Comprehensive Income ........................................ $2,487,415 $3,003,074
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