EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: DANIEL L. KRIEGER,
CHAIRMAN & PRESIDENT
OR
JOHN P. NELSON
VICE PRESIDENT & CFO
(515) 232-6251
JANUARY 23, 2004
AMES NATIONAL CORPORATION
ANNOUNCES
2003 AND FOURTH QUARTER EARNINGS
As of December 31, 2003, record numbers were posted for net income,
total assets, deposits, loans, and capital. Net income for the year ended
December 31, 2003 increased 2.5% and totaled $11,625,000 or $3.71 per share
compared to 2002 results of $11,340,000 or $3.63 per share. The improvement in
net income is the result of higher net interest income, secondary market fees
and security gains which was partially offset by higher non interest expense.
Return on average assets for 2003 and 2002 was 1.60% and 1.78%,
respectively, while the return on equity for the same periods equaled 11.16% and
11.54%, respectively. The efficiency ratio for the year ending December 31, 2003
was 47.18% compared to 44.64% for the previous year. Increased salaries and
employee benefits were the primary reason for the increase in non interest
expense.
Net income for the quarter ended December 31, 2003 was $2,864,000, 5.9%
higher than the $2,706,000 earned in the fourth quarter last year. Earnings per
share were $.91 for the quarter compared to $.87 for the same period in 2002.
The increase in quarterly earnings can be primarily attributed to higher net
interest income and lower provision for loan losses expense which was partially
offset by increased salary and benefit expenses, lower secondary market fees,
and decreased security gains.
Return on average assets was 1.52% this quarter compared to 1.65% in
fourth quarter 2002. Return on average equity was 10.83% for the three months
ended December 31, 2003 which was slightly higher than the 10.71% posted a year
ago. The efficiency ratio for fourth quarter was 49.66% compared to 47.09% for
the same period last year. Increased salaries and employee benefits were the
largest contributor to the increase in non interest expense.
Deposits increased to $619,549,000 as of year end 2003, a 12.5%
increase over the $550,622,000 as of year end 2002. The increase in certificates
of deposits balances totaled $30,037,000 while interest bearing checking
accounts increased $16,983,000. United Bank & Trust's deposit growth represented
$36,997,000 of the total increase.
Loans rose 7.9% to $355,533,000, a $25,940,000 increase over year end
2002. Commercial real estate loans originated by United Bank & Trust accounted
for most of the portfolio growth. The allowance for loan losses as of December
31, 2003 totaled $6,051,000 compared to $5,758,000 for December 31, 2002. Net
charge-offs for the year ended December 31, 2003 were $352,000 compared to
$376,000 for the previous year.
Year end capital rose 5.8% to $107,325,000 compared to $101,523,000 on
December 31, 2002. Included in capital are unrealized gains on securities
available for sale which amounted to $8,916,000 this period compared to
$7,819,000 for the same quarter last year. Capital represented over 14% of total
assets at the end of 2003.
Company stock, which is listed on the Bulletin Board under the symbol
ATLO, closed at $58.25 on December 31, 2003. During fourth quarter, the price
ranged from $57.00 to $59.75. The fourth quarter dividend paid was $.46 per
share compared to $.44 per share paid in the same period a year ago.
United Bank & Trust, Marshalltown, Iowa, the de novo started in mid
2002, continues to make progress and has exceeded projected deposit and loan
numbers for the year.
Ames National Corporation affiliate Iowa banks are 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.
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This news release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are subject to certain risks and
uncertainties. A number of factors, many of which are beyond the Company's
control, could cause actual conditions to differ significantly from those
described in forward-looking statements. 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)
December 31, December 31,
Assets 2003 2002
----------------------------
Cash and due from banks ............................ $ 31,982,144 $ 51,688,784
Federal funds sold ................................. 20,380,000 32,500,000
Interest bearing deposits in financial institutions 6,363,538 1,000,000
Securities available-for-sale ...................... 323,115,914 244,575,026
Loans held for sale ................................ 859,139 2,713,446
Loans receivable, net .............................. 355,533,119 329,593,052
Bank premises and equipment, net ................... 8,377,807 8,726,397
Accrued income receivable .......................... 5,842,247 5,849,017
Other assets ....................................... 332,556 582,849
----------------------------
Total assets ............................ $752,786,464 $677,228,570
============================
Liabilities and Stockholders' Equity
Deposits:
Demand .......................................... $ 71,372,534 $ 62,557,937
NOW accounts .................................... 138,308,140 121,325,104
Savings and money market ........................ 166,387,319 153,296,259
Time, $100,000 and over ......................... 69,486,570 54,564,283
Other time ...................................... 173,993,964 158,878,796
----------------------------
Total deposits .......................... 619,548,527 550,622,379
Federal funds purchased and securities sold under
agreements to repurchase ........................... 18,198,403 18,325,574
Dividends payable .................................. 1,441,204 1,376,752
Deferred taxes ..................................... 3,238,665 2,879,057
Accrued interest and other liabilities ............. 3,034,670 2,501,952
----------------------------
Total liabilities ....................... 645,461,469 575,705,714
----------------------------
Stockholders' Equity:
Common stock, $5 par value; authorized 6,000,000
shares;issued 2003 and 2002 3,153,230 shares;
outstanding 2003
3,133053 shares, 2002 3,128,982 shares ........ 15,766,150 15,766,150
Additional paid-in capital ...................... 25,351,979 25,354,014
Retained earnings ............................... 58,400,660 53,917,544
Treasury stock, at cost; 2003 20,177 shares,
2002 24,248 shares ............................ (1,109,735) (1,333,640)
Accumulated other comprehensive income -
net unrealized gain on securities
available-for-sale ............................ 8,915,941 7,818,788
----------------------------
Total stockholders' equity .............. 107,324,995 101,522,856
----------------------------
$752,786,464 $677,228,570
============================
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AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-----------------------------------------------------
Interest and dividend income:
Loans, including fees .................... $ 5,413,257 $ 5,745,208 $22,197,335 $23,207,184
Securities:
Taxable ................................ 1,992,467 1,934,834 7,510,671 7,931,041
Tax-exempt ............................. 1,051,491 764,033 3,604,641 2,938,423
Federal funds sold ....................... 93,338 172,018 628,203 810,675
Dividends ................................ 354,787 336,505 1,372,890 1,383,350
----------------------------------------------------
Total interest income .............. 8,905,340 8,952,598 35,313,740 36,270,673
----------------------------------------------------
Interest expense:
Deposits ................................. 2,380,561 2,689,839 10,045,178 11,397,125
Other borrowed funds ..................... 77,535 70,062 293,604 265,845
----------------------------------------------------
Total interest expense ............. 2,458,096 2,759,901 10,338,782 11,662,970
----------------------------------------------------
Net interest income ................ 6,447,244 6,192,697 24,974,958 24,607,703
Provision for loan losses .................... 132,707 392,307 645,447 688,431
----------------------------------------------------
Net interest income after
provision for loan losses ....... 6,314,537 5,800,390 24,329,511 23,919,272
----------------------------------------------------
Noninterest income:
Trust department income .................. 343,840 235,131 1,225,099 1,032,500
Service fees ............................. 376,474 391,379 1,513,964 1,492,344
Securities gains, net .................... 209,090 327,501 1,395,320 889,923
Loan and secondary market fees ........... 217,337 329,298 1,155,311 739,907
Other .................................... 249,566 347,182 1,145,781 980,140
----------------------------------------------------
Total noninterest income ........... 1,396,307 1,630,491 6,435,475 5,134,814
----------------------------------------------------
Noninterest expense:
Salaries and employee benefits ........... 2,345,763 2,129,020 9,044,896 8,074,181
Data processing .......................... 598,708 651,306 2,188,488 1,934,006
Occupancy expenses ....................... 246,530 272,089 1,088,438 927,287
Other operating expenses ................. 704,011 629,679 2,497,692 2,340,098
----------------------------------------------------
Total noninterest expense .......... 3,895,012 3,682,094 14,819,514 13,275,572
----------------------------------------------------
Income before income taxes ......... 3,815,832 3,748,787 15,945,472 15,778,514
Income tax expense ........................... 951,342 1,042,797 4,320,787 4,438,376
----------------------------------------------------
Net income ......................... $2,864,490 $2,705,990 $11,624,685 $11,340,138
====================================================
Basic and diluted earnings per share ....... $ 0.91 $ 0.87 $ 3.71 $ 3.63
====================================================
Declared dividends per share ............... $ 0.46 $ 0.44 $ 2.28 $ 2.18
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