EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Daniel L. Krieger,
Chairman & President
or
John p. Nelson,
Vice President
OCtober 15, 2004 (515) 232-6251
AMES NATIONAL CORPORATION
ANNOUNCES
THIRD QUARTER EARNINGS
Ames National Corporation is headquartered in Ames, Iowa with five banks
including twelve banking offices in central Iowa. Affiliate 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.
Net income for the quarter ended September 30, 2004 was $3,372,000, 4% higher
than the $3,241,000 earned in the third quarter last year. Earnings per share
were $1.08 for the quarter slightly higher than the $1.03 earned in the same
period in 2003. Return on average assets was 1.70% compared to 1.78% in third
quarter 2003. Return on average equity was 12.66% for the three months ended
September 30, 2004 which compares to 12.42% posted a year ago. The efficiency
ratio for third quarter was 45.85% compared to 44.02% for the same period last
year. Net interest margin for the third quarter 2004 was 3.95%, slightly less
than the 4.10% for third quarter 2003. Net loan recoveries totaled $99,000 for
the three months ended September 30, 2004 compared to net loan charge-offs of
$19,000 for the three months ended September 30, 2003. A loan recovery at First
National Bank of $136,000 relating to a problem commercial credit resulted in a
negative provision for loan losses for the third quarter.
The Company recorded higher earnings for third quarter 2004 despite much lower
gains from securities transactions and secondary market loan fees. Contributing
to this quarter's earnings was higher net interest income and the fact that non
interest expense was only slightly higher than third quarter 2003.
For the nine month period ending September 30, 2004, the Company earned net
income of $9,199,000, or $2.94 per share, a 5% increase over net income of
$8,760,000, or $2.80 per share, earned a year ago. A stable net interest margin
and a higher volume of earning assets resulted in an additional $1,315,000 in
net interest income for the first nine months of 2004 compared to the same
period a year ago. For the first nine months of 2004, the improved net interest
income was offset by lower security gains and lower secondary market mortgage
loan fees. Net interest margin for the first three quarters was 4.00% compared
to 4.02% for the same period in 2003. Net loan recoveries totaled $56,000 for
the nine months ended September 30, 2004 compared to net loan charge-offs of
$321,000 for the nine months ended September 30, 2003.
Total assets reached a record $800 million, $62 million higher than the third
quarter of 2003 with significant growth in both loans and investments.
Deposits increased to $648,917,000 for third quarter 2004, an 8% increase over
the $602,522,000 recorded in third quarter 2003 with interest bearing checking
account deposits accounting for most of the increase.
Loans rose 12% to a record $387,743,000, a $42 million increase over third
quarter 2003 with commercial real estate accounting for most of the gain.
Third quarter 2004 capital rose 5% to $109,644,000 compared to $104,836,000 on
September 30, 2003. Included in capital are unrealized capital gains on
securities available for sale in the amount of $7,842,000, compared to
$7,850,000 posted at the end of third quarter 2003. Capital represented 13.7% of
total assets at the end of third quarter 2004.
Company stock, which is listed on the Bulletin Board under the symbol ATLO,
closed at $71.00 on September 30, 2004. During third quarter the price ranged
from $62.25 to $71.50. The third quarter dividend paid was $.49 per share
compared to $.46 per share paid in the same quarter a year ago. The Company has
recently submitted an application to have it common stock listed on NASDAQ
SmallCap Market. In order to comply with the listing requirements for NASDAQ,
the Company has amended its Audit Committee Charter which can be viewed at
www.amesnational.com.
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AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
September 30, September 30,
Assets 2004 2003
------------------------------
Cash and due from banks ....................................... $ 30,392,905 $ 23,786,945
Federal funds sold ............................................ 335,000 47,983,000
Interest bearing deposits in financial institutions ........... 9,214,595 6,000,000
Securities available-for-sale ................................. 356,253,991 300,766,501
Loans receivable, net ......................................... 387,402,492 342,674,299
Loans held for sale ........................................... 340,150 2,328,828
Bank premises and equipment, net .............................. 8,783,819 8,551,794
Accrued income receivable ..................................... 6,716,873 6,314,908
Other assets .................................................. 908,172 358,198
------------------------------
Total assets ....................................... $ 800,347,997 $ 738,764,473
==============================
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Demand ..................................................... $ 65,855,704 $ 63,523,911
NOW accounts ............................................... 173,726,694 137,857,750
Savings and money market ................................... 171,534,487 166,661,183
Time, $100,000 and over .................................... 66,861,191 63,297,586
Other time ................................................. 170,939,177 171,181,614
------------------------------
Total deposits ..................................... 648,917,253 602,522,044
Federal funds purchased and securities
sold under agreements to repurchase ........................ 32,992,304 22,452,228
Dividends payable ............................................. 3,074,325 2,882,409
Deferred taxes ................................................ 2,553,015 2,749,662
Accrued interest and other liabilities ........................ 3,166,620 3,322,574
------------------------------
Total liabilities .................................. 690,703,517 633,928,917
------------------------------
Stockholders' Equity:
Common stock, $5 par value; authorized 6,000,000 shares;
issued 3,153,230 shares at September 30, 2004 and 2003;
outstanding 3,137,066 shares at September 30, 2004
and 3,133,053 shares at September 30, 2003 .............. 15,766,150 15,766,150
Additional paid-in-capital ................................. 25,378,746 25,351,979
Retained earnings .......................................... 61,546,936 56,977,374
Treasury stock, at cost; 16,164 shares at September 30, 2004
and 20,177 shares at September 30, 2003 .................. (889,020) (1,109,735)
Accumulated other comprehensive income - net unrealized gain
on securities available-for-sale ......................... 7,841,668 7,849,788
------------------------------
Total stockholders' equity ......................... 109,644,480 104,835,556
------------------------------
Total liabilities and stockholders' equity ......... $ 800,347,997 $ 738,764,473
==============================
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AMES NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------------------
2004 2003 2004 2003
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Interest and dividend income:
Loans ............................................................. $ 5,721,244 $ 5,576,844 $16,545,006 $16,784,078
Securities
Taxable ......................................................... 2,157,631 1,841,920 6,385,422 5,518,204
Tax-exempt ...................................................... 1,061,069 940,760 3,206,725 2,553,150
Federal funds sold ................................................ 3,065 121,263 81,161 534,865
Dividends ......................................................... 380,838 337,259 1,129,368 1,018,103
------------------------------------------------------
Total Interest Income ................................................ 9,323,847 8,818,046 27,347,682 26,408,400
------------------------------------------------------
Interest expense:
Deposits .......................................................... 2,470,179 2,392,420 7,144,678 7,664,617
Other borrowed funds .............................................. 192,070 74,735 360,697 216,069
------------------------------------------------------
Total Interest Expense ............................................... 2,662,249 2,467,155 7,505,375 7,880,686
------------------------------------------------------
Net interest income ......................................... 6,661,598 6,350,891 19,842,307 18,527,714
Provision for loan losses ............................................ (63,820) 87,000 204,888 512,740
------------------------------------------------------
Net interest income after provision for loan losses ......... 6,725,418 6,263,891 19,637,419 18,014,974
------------------------------------------------------
Non-interest income:
Trust department income ........................................... 266,539 279,157 875,697 881,259
Service fees ...................................................... 503,027 395,491 1,320,895 1,137,490
Securities gains, net ............................................. 19,821 539,623 51,363 1,186,230
Gain on sale of loans held for sale ............................... 125,764 366,978 473,505 937,974
Merchant and ATM fees ............................................. 137,384 164,179 406,789 412,213
Other ............................................................. 365,236 186,193 680,362 484,002
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Total non-interest income ................................... 1,417,771 1,931,621 3,808,611 5,039,168
------------------------------------------------------
Non-interest expense:
Salaries and employee benefits .................................... 2,240,214 2,204,712 6,768,289 6,699,133
Occupancy expenses ................................................ 250,782 341,562 755,734 841,908
Data processing ................................................... 482,341 504,643 1,590,621 1,589,780
Other operating expenses .......................................... 730,908 594,914 1,918,551 1,793,681
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Total non-interest expense .................................. 3,704,245 3,645,831 11,033,195 10,924,502
------------------------------------------------------
Income before income taxes .................................. 4,438,944 4,549,681 12,412,835 12,129,640
Income tax expense ................................................... 1,066,557 1,309,039 3,213,867 3,369,445
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Net income .................................................. $ 3,372,387 $ 3,240,642 $ 9,198,968 $ 8,760,195
======================================================
Basic and diluted earnings per share ................................. $ 1.08 $ 1.03 $ 2.94 $ 2.80
======================================================
Declared dividends per share ......................................... $ 0.49 $ 0.46 $ 1.93 $ 1.82
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