Ames National Corp (ATLO) Annual Report (10-K) & SEC Filings

Net loan charge-offs increased to $745k from net recoveries of $344k, driven by commercial real estate and operating loans.

“Net loan charge-offs $745 thousand vs net loan recoveries $344 thousand; charge-offs on commercial real estate and operating loans.” · word for word

Consultant fees of $600k for contract negotiations expected to continue through 2026, adding to noninterest expense.

“Professional fees increased due to $600k consultant fees for contract negotiations expected to continue throughout 2026.”

Credit quality deterioration in agricultural and commercial real estate portfolios

“The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.55% at June 30, 2026, as compared to 1.19% at December 31, 2025.” · word for word

Concentration in commercial real estate and multi-family loans

“Commercial real estate and multi-family real estate represent approximately 39% of the loan portfolio as of June 30, 2026.” · word for word

Declining loan balances

“The loan portfolio, net of the allowance for credit losses, totaled $1.25 billion and $1.28 billion as of June 30, 2026 and December 31, 2025, respectively.” · word for word

Expiration of New Markets Tax Credits

“The final year of tax credits was 2025 for a majority of the New Markets Tax Credit projects.” · word for word

Credit loss expense increased YoY; commercial loan portfolio charge-offs continue.

“A credit loss expense of $208 thousand was recognized in the second quarter of 2026 as compared to $108 thousand in the second quarter of 2025. The credit loss expense in 2026 and 2025 was primarily due to charge-offs in the commercial loan portfolio.” · word for word

Consultant fees for contract negotiations expected to continue throughout 2026, pressuring noninterest expense.

“The increase in professional fees was primarily due to $300 thousand of consultant fees for certain contract negotiations in the second quarter of 2026. The consultant fees are expected to continue throughout 2026 as negotiations are in process.” · word for word

Agricultural loan credit deterioration

“The increase is primarily due to variable yields, weather impacts and commodity prices affecting agricultural loans.” · word for word

Commercial real estate concentration risk

“Commercial real estate and multi-family real estate represent approximately 40% of the loan portfolio as of March 31, 2026.” · word for word

Unrealized investment losses

“As of March 31, 2026, gross unrealized losses of $30.1 million, are due to the interest rate environment and are not considered credit-related.” · word for word

Substandard loans increased due to weakening in multi-family portfolio; two agricultural loan relationships classified as substandard-impaired.

“Substandard loans were $34.8 million and $32.4 million as of March 31, 2026 and 2025, respectively. The increase in substandard loans is primarily due to weakening in the multi-family portfolio and partially offset by an improvement in the commercial real estate portfolio.” · word for word

Loans past due 30 days or more increased significantly, primarily related to agricultural and construction loans.

“Loans past due 30 days or more totaled $19.4 million as of March 31, 2026, compared to $11.8 million as of March 31, 2025. The increase is primarily related to two agricultural operating loan relationships classified as substandard-impaired and one construction real estate loan relationship that matured and is being restructured.” · word for word

Consultant fees for contract negotiations expected to continue throughout 2026, pressuring noninterest expense.

“The increase in professional fees was primarily due to $300 thousand of consultant fees for certain contract negotiations in the first quarter of 2026. The consultant fees are expected to continue throughout 2026 as the negotiation is in process.” · word for word

Agricultural loan portfolio risk

“The agricultural industry is subject to commodity price fluctuations and other risks. Extended periods of low commodity prices, higher input costs or poor weather conditions could result in reduced profit margins”

Multi-family and commercial real estate loan risk

“Our portfolio of multi-family and commercial real estate loans are facing challenging conditions resulting from a combination of reduced occupancy and higher operating costs due to the continuing inflationary pressures in the economy and is primarily responsible for the increase in our substandard loans during 2025.”

Interest rate risk

“If short-term interest rates remain elevated or increase over a relatively short period of time due to inflationary pressures or other factors, the interest rate environment may present a challenge to the Company.”

Dividend reduction risk

“In meeting our objective to maintain our capital levels and liquidity position, our Board of Directors could reduce, or determine to altogether forego, payment of future dividends in order to maintain and/or strengthen our capital and liquidity position.”

Agricultural loan portfolio risk

“The agricultural industry is subject to commodity price fluctuations and other risks. Extended periods of low commodity prices, higher input costs or poor weather conditions could result in reduced profit margins” · word for word

Multi-family and commercial real estate loan risk

“Our portfolio of multi-family and commercial real estate loans are facing challenging conditions resulting from a combination of reduced occupancy and higher operating costs due to the continuing inflationary pressures in the economy and is primarily responsible for the increase in our substandard loans during 2025.” · word for word

Interest rate risk

“If short-term interest rates remain elevated or increase over a relatively short period of time due to inflationary pressures or other factors, the interest rate environment may present a challenge to the Company.” · word for word

Dividend reduction risk

“In meeting our objective to maintain our capital levels and liquidity position, our Board of Directors could reduce, or determine to altogether forego, payment of future dividends in order to maintain and/or strengthen our capital and liquidity position.” · word for word

No material risk signals; routine corporate governance event.

“No adverse financial or operational disclosures.”

Asset quality deterioration

“The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.51% at September 30, 2025, as compared to 1.17% at December 31, 2024.” · word for word

Commercial real estate exposure

“Commercial real estate and multi-family real estate represent approximately 41% of the loan portfolio as of September 30, 2025.” · word for word

Agricultural loan stress

“The increase in watch and special mention loans is primarily due to variable yields, weather impacts and commodity prices affecting agricultural loans.” · word for word