Ames National Corporation Reports Unaudited Consolidated Earnings Results for the Quarter and Year Ended December 31, 2020
January 22, 2021 at 09:22 pm
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Ames National Corporation reported unaudited consolidated earnings results for the quarter and year ended December 31, 2020. For the quarter ended December 31, 2020, net income for the company totaled $5,196,000, or $0.57 per share, compared to $4,298,000, or $0.47 per share, earned in the fourth quarter of 2019. The increase in earnings is primarily the result of a reduction in interest expense due to declines in market rates, offset in part by an increase in the provision for loan losses. Fourth quarter 2020 interest income was $153,000 higher than fourth quarter 2019. The increase is primarily due to organic loan growth, Paycheck Protection Program (PPP) loans and growth in investment securities, offset in part by a reduction in interest rates. Fourth quarter 2020 net interest income totaled $13,957,000, an increase of $1,423,000, or 11%, compared to the same quarter a year ago. The increase in net interest income was primarily due to a reduction in interest expense due to declines in market rates.
For the year ended December 31, 2020, net income for the company totaled $18,850,000 or $2.06 per share, compared to $17,194,000 or $1.86 per share earned in 2019. The increase in earnings is primarily the result of the Acquisition, reduction in interest expense due to declines in market rates, and was partially offset by an increase in the provision for loan losses. The net interest income for the year ended December 31, 2020 totaled $54,843,000, an increase of $9,595,000, or 21%, compared to the same period a year ago.
Ames National Corp is a bank holding company for its banking subsidiaries, First National Bank, Ames, Iowa (FNB); State Bank & Trust Co., Nevada, Iowa (SBT); Boone Bank & Trust Co., Boone, Iowa (BBT); Reliance State Bank, Story City, Iowa (RSB); United Bank & Trust Co., Marshalltown, Iowa (UBT), and Iowa State Savings Bank, Creston, Iowa (ISSB). The Bankâs lending activities consist primarily of short-term and medium-term commercial and agricultural real estate loans, residential real estate loans, agricultural and business operating loans and lines of credit, equipment loans, vehicle loans, personal loans and lines of credit, home improvement loans and origination of mortgage loans for sale into the secondary market. It provides a variety of checking, savings and time deposits, cash management services, merchant credit card processing, safe deposit boxes, wire transfers, direct deposit, and automated/video teller machine access and automatic drafts (ACH) for various accounts.