Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Daniel L. Krieger,
Chairman & President
(515) 232-6251
April 16, 2004
AMES NATIONAL CORPORATION
ANNOUNCES FIRST QUARTER 2004 FINANCIAL RESULTS
AND FORECASTED EARNINGS FOR 2004
The Company earned net income of $2,965,000, or $0.95 per share for the three
months ended March 31, 2004, compared to net income of $2,870,000, or $0.92 per
share, for the three months ended March 31, 2003,an increase of 3%. The
Company's return on average assets was 1.56% and 1.67% respectively, for the
three-month periods ending March 31, 2004 and 2003. The Company's return on
average equity was 10.91% and 11.26%, respectively for the three-month periods
ending March 31, 2004 and 2003.Total assets increased from $737 million for the
quarter ended March 31, 2003 to $799 million for the quarter ended March 31,
2004, an increase of 8%.
Net interest income increased $500,000 or 8% for the first quarter of 2004
compared to the same period in 2003. Non-interest expense was 4% higher in the
first quarter of 2004 as the result of higher overhead expenses associated with
data processing and equipment costs as well as employee salaries and benefits.
Higher quarterly earnings were posted even though secondary market loan income
and securities gains in the Company's investment portfolio were lower for first
quarter 2004 compared to the same period a year ago.
Deposits increased 7% to a record $660 million with the majority of the growth
in interest-bearing checking and money market accounts. Boone Bank & Trust Co.,
State Bank & Trust Co. and United Bank & Trust accounted for most of the
increase in this area. United Bank has made an impact in the Marshalltown area
with over $74 million in deposits since it began operations in mid June 2002.
Loans increased 6% to $360 million, a $20 million increase since March 31, 2003
with the growth coming in all loan categories.
Capital increased 8% to $111 million from one year ago. Capital at the end of
March 2004, which includes over $10 million in net unrealized gains on
securities available for sale, represented nearly 14% of total assets. Ames
National Corporation stock, under the symbol ATLO, traded in the $58.25 to
$61.00 range in the first quarter of 2004 and closed at $61.00 on March 31,
2004.
Ames National Corporation is forecasting earnings for the year ending December
31, 2004 of $3.85 to $3.93 per share this range is approximately 5% higher than
the $3.71 per share earned for the year ending December 31, 2003. Higher
earnings are forecast as the result of a projected increase in net interest
income that exceeds an expected reduction in realized capital gains on
securities and a decrease in secondary market loan income.
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.
The Company's earnings forecast for 2004 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.
AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
March 31, March 31,
Assets 2004 2003
------------ -----------
Cash and due from banks $ 26,268,260 $ 26,870,928
Federal funds sold 38,690,000 100,320,000
Interest bearing deposits
in financial institutions 8,588,576 1,000,000
Securities available-for-sale 350,165,660 254,003,860
Loans receivable, net 359,405,771 339,524,260
Loans held for sale 660,000 859,139
Bank premises and equipment, net 8,447,894 8,623,103
Accrued income receivable 5,981,800 5,701,244
Other assets 514,182 357,811
----------- -----------
Total assets $ 798,722,143 $ 737,260,345
=========== ===========
Liabilities and Stockholders' Equity
Deposits:
Demand $ 64,423,914 $ 61,686,441
NOW accounts 165,640,307 144,079,506
Savings and money market 185,799,563 174,326,939
Time, $100,000 and over 67,780,557 63,441,854
Other time 176,115,766 170,359,656
----------- -----------
Total deposits 659,760,107 613,894,396
Federal funds purchased and securities
sold under agreements to repurchase 18,854,237 13,362,019
Dividends payable 1,441,204 1,376,752
Deferred taxes 4,340,041 2,539,121
Accrued interest and other liabilities 3,571,076 3,454,538
----------- -----------
Total liabilities 687,966,665 634,626,826
----------- -----------
Stockholders' Equity:
Common stock, $5 par value;
authorized 6,000,000 shares;
issued 3,153,230 shares at
March 31, 2004 and 2003;
outstanding 3,133,053 and 3,128,982
at March 31, 2004 and 2003,respectively 15,766,150 15,766,150
Surplus 25,351,979 25,354,014
Retained earnings 59,923,998 55,411,117
Treasury stock, at cost; 20,177 and
24,248 shares at March 31, 2004 and 2003,
respectively (1,109,735) (1,333,640)
Accumulated other comprehensive
income - net unrealized gain
on securities available-for-sale 10,823,086 7,435,878
----------- -----------
Total stockholders' equity 110,755,478 102,633,519
----------- -----------
Total liabilities and stockholders' equity $ 798,722,143 $ 737,260,345
=========== ===========
AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
Three Months Ended
March 31,
2004 2003
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Interest and dividend income:
Loans $ 5,352,668 $ 5,556,035
Securities
Taxable 2,076,081 1,883,539
Tax-exempt 1,051,986 770,300
Federal funds sold 56,873 163,694
Dividends 377,196 340,665
---------- ----------
Total interest income 8,914,804 8,714,233
---------- ----------
Interest expense:
Deposits 2,316,646 2,625,990
Other borrowed funds 74,528 64,219
---------- ----------
Total interest expense 2,391,174 2,690,209
---------- ----------
Net interest income 6,523,630 6,024,024
Provision for loan losses 58,355 119,745
---------- ----------
Net interest income after
provision for loan losses 6,465,275 5,904,279
---------- ----------
Non-interest income:
Trust department income 283,871 327,329
Service fees 356,931 358,924
Securities gains, net 31,542 365,825
Gain on sale of loans held for sale 164,188 248,120
Merchant and ATM fees 149,080 139,898
Other 155,321 155,317
---------- ----------
Total non-interest income 1,140,933 1,595,413
---------- ----------
Non-interest expense:
Salaries and employee benefits 2,258,919 2,169,684
Occupancy expenses 267,977 268,608
Data processing 594,505 467,800
Other operating expenses 531,353 591,510
---------- ----------
Total non-interest expense 3,652,754 3,497,602
---------- ----------
Income before income taxes 3,953,454 4,002,090
Income tax expense 988,912 1,131,765
---------- ----------
Net income $ 2,964,542 $ 2,870,325
========== ==========
Basic and diluted earnings per share $ $
0.95 0.92
========== ==========
Declared dividends per share $ $
0.46 0.44
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