Ames National Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017
January 19, 2018 at 04:20 pm
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Ames National Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total interest income of $11,627,095 against $11,113,646 a year ago. Net interest income was $10,112,929 against $10,033,511 a year ago. Income before income taxes was $5,609,438 against $5,741,677 a year ago. Net income was $2,686,324 against $4,024,424 a year ago. Basic and diluted earnings per share were $0.29 against $0.43 a year ago. The decrease in earnings is primarily the result of increased income tax expense and elevated deposit interest expense, offset in part by improved loan interest income. The increase in income tax expense was primarily due to the write down of the Company’s deferred income tax asset due to a decrease in the corporate federal income tax rates enacted in December 2017.
For the full year, the company reported total interest income of $45,794,435 against $44,046,039 a year ago. Net interest income was $40,213,356 against $39,910,758 a year ago. Income before income taxes was $21,281,990 against $22,539,282 a year ago. Net income was $13,697,189 against $15,734,776 a year ago. Basic and diluted earnings per share were $1.47 against $1.69 a year ago. The decline in earnings is primarily the result of an increased provision for loan losses, elevated deposit interest expense and higher income tax expense, offset in part by improved loan interest income. The increased deposit interest expense was primarily due to higher market interest rates. The increase in income tax expense was primarily due to the write down of the Company’s deferred income tax asset due to a decrease in the corporate federal income tax rates enacted in December 2017.
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.