Ames National Corp. sees increased earnings despite lower grain prices
An Iowa-based banking corporation is seeing a weakness in the state's agricultural economy due to low grain prices, but its substantially lower third-quarter loans losses are not related to that sector.
Ames National Corp., which has five affiliate banks in central Iowa, recently announced its third quarter results.
It reported that for the quarter ending Sept. 30, net income was $3.928 million or $0.42 per share, up from $3.804 million or $0.41 per share over the same period last year. The increase in earnings is primarily the result of increased loan interest income and a decline in the provision for loan losses, offset in part by higher deposit interest expense, the company said in a release.
Average net loans for the three months were $41 million higher for the quarter compared to a year earlier, the corporation stated, adding that the increase in loan volume occurred primarily in the Ames and Des Moines metro markets.
A provision for loan losses of $57,000 was recognized in the third quarter of 2017 as compared to $235,000 in the third quarter of 2016. One loan was the primary reason for the higher provision in 2016.
While the current provision for loan losses is not related to agricultural loans, management is seeing weakness in the Iowa agricultural economy as a result of the current low grain prices, the company said.
The Nasdaq-listed corporation's affiliate banks are First National Bank, Ames; Boone Bank & Trust Co., Boone; State Bank & Trust Co., Nevada; Reliance State Bank, Story City; and United Bank & Trust, Marshalltown.