# AMES NATIONAL CORP (ATLO)

Informational only - not investment advice.

CIK: 0001132651
SIC: 6021 National Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6021 National Commercial Banks](/industry/6021/)
Latest 10-K filed: 2026-03-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=1132651
Filing source: https://www.sec.gov/Archives/edgar/data/1132651/000143774926007976/atlo20251231_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-12 · accession 0001437749-26-007976 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001132651.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 87,093,000 USD | 2025 | verified |
| Net income | 19,027,000 USD | 2025 | verified |
| Assets | 2,133,540,000 USD | 2025 | verified |
| Free cash flow | 20,697,000 USD | 2025 | computed |
| Net margin | 21.85% | 2025 | computed |
| Revenue YoY | +5.43% | 2025 | computed |
| ROE | 9.15% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ATLO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 21.8% | 22.9% | 41 | 76 |
| Revenue growth | 5.4% | 5.2% | 55 | 76 |
| FCF margin | 23.8% | 22.0% | 59 | 65 |
| ROE | 9.2% | 9.9% | 40 | 76 |
| ROA | 0.9% | 1.1% | 25 | 76 |
| Liabilities / equity | 9.26 | 8.12 | 71 | 76 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6021 National Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 87093000 | USD | 2025 | 2026-03-12 |
| Net income | 19027000 | USD | 2025 | 2026-03-12 |
| Assets | 2133540000 | USD | 2025 | 2026-03-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001132651.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 44,046,039 | 45,794,435 | 49,726,963 | 56,177,493 | 62,941,000 | 60,482,000 | 61,553,000 | 74,301,000 | 82,607,000 | 87,093,000 |
| Net income |  |  | 15,734,776 | 13,697,189 | 17,013,878 | 17,194,169 | 18,850,000 | 23,913,000 | 19,293,000 | 10,817,000 | 10,218,000 | 19,027,000 |
| Operating cash flow |  |  | 21,417,316 | 18,846,070 | 20,705,081 | 20,179,712 | 29,712,000 | 30,470,000 | 21,231,000 | 19,207,000 | 14,299,000 | 21,339,000 |
| Capital expenditures |  |  | 267,761 | 518,155 | 616,544 | 780,440 | 1,249,000 | 1,874,000 | 2,858,000 | 4,894,000 | 298,000 | 642,000 |
| Dividends paid |  |  | 7,728,058 | 8,100,495 | 10,800,659 | 8,784,906 | 9,072,000 | 9,389,000 | 9,675,000 | 9,712,000 | 9,082,000 | 7,113,000 |
| Share buybacks | 0.00 | 0.00 |  |  | 452,220 | 1,808,699 | 1,992,000 | 710,000 | 2,300,000 | 0.00 | 704,000 | 1,684,000 |
| Assets |  |  | 1,366,453,029 | 1,375,059,650 | 1,455,687,351 | 1,737,182,505 | 1,975,648,000 | 2,137,041,000 | 2,134,926,000 | 2,155,481,000 | 2,133,180,000 | 2,133,540,000 |
| Liabilities |  |  | 1,201,347,786 | 1,204,306,508 | 1,282,822,287 | 1,549,603,033 | 1,766,161,000 | 1,929,263,000 | 1,985,828,000 | 1,989,693,000 | 1,958,474,000 | 1,925,646,000 |
| Stockholders' equity |  |  | 165,105,243 | 170,753,142 | 172,865,064 | 187,579,000 | 209,487,000 | 207,778,000 | 149,098,000 | 165,788,000 | 174,706,000 | 207,894,000 |
| Cash and cash equivalents |  |  | 29,478,068 | 26,397,550 | 30,384,066 | 34,616,880 | 173,097,000 | 89,129,000 | 27,884,000 | 55,101,000 | 101,227,000 | 126,753,000 |
| Free cash flow |  |  | 21,149,555 | 18,327,915 | 20,088,537 | 19,399,272 | 28,463,000 | 28,596,000 | 18,373,000 | 14,313,000 | 14,001,000 | 20,697,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 35.72% | 29.91% | 34.21% | 30.61% | 29.95% | 39.54% | 31.34% | 14.56% | 12.37% | 21.85% |
| Return on equity |  |  | 9.53% | 8.02% | 9.84% | 9.17% | 9.00% | 11.51% | 12.94% | 6.52% | 5.85% | 9.15% |
| Return on assets |  |  | 1.15% | 1.00% | 1.17% | 0.99% | 0.95% | 1.12% | 0.90% | 0.50% | 0.48% | 0.89% |
| Liabilities / equity |  |  | 7.28 | 7.05 | 7.42 | 8.26 | 8.43 | 9.29 | 13.32 | 12.00 | 11.21 | 9.26 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001132651.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2011-Q2 | 2011-06-30 |  |  | 0.34 | reported discrete quarter |
| 2011-Q3 | 2011-09-30 |  |  | 0.38 | reported discrete quarter |
| 2012-Q1 | 2012-03-31 |  |  | 0.38 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 18,762,000 | 2,924,000 |  | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 19,856,000 | 2,139,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 20,111,000 | 2,304,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 20,535,000 | 2,184,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 20,712,000 | 2,217,000 |  | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 21,249,000 | 3,513,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 21,118,000 | 3,443,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 21,485,000 | 4,511,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 21,853,000 | 4,559,000 |  | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 22,637,000 | 6,514,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 22,216,000 | 5,960,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 23,278,000 | 5,931,000 |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ATLO's latest 10-K: [/company/ATLO/business/](/company/ATLO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ATLO's latest 10-K: [/company/ATLO/risk-factors/](/company/ATLO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1132651/000143774926026572/atlo20260630_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-07
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Ames National Corporation (the “Company”) is a bank holding company established in 1975 that owns and operates six bank subsidiaries in central, north-central and south-central Iowa (the “Banks”). The following discussion is provided for the consolidated operations of the Company and its Banks, First National Bank, Ames, Iowa (First National), State Bank & Trust Co. (State Bank), Boone Bank & Trust Co. (Boone Bank), Reliance State Bank (Reliance Bank), United Bank & Trust Co. (United Bank) and Iowa State Savings Bank (Iowa State Bank). The purpose of this discussion is to focus on significant factors affecting the Company's financial condition and results of operations.

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. Wealth management services includes financial planning and managing trust, agencies, estates and investment brokerage accounts. The Company employs twenty-nine individuals to assist the Banks with its financial reporting, human resources, audit, compliance, marketing, technology systems, training, real estate valuation services and the coordination of management activities, in addition to 232 full-time equivalent individuals employed by the Banks.

The Company’s primary competitive strategy is to utilize seasoned and competent Bank management and local decision making authority to provide customers with faster response times and more flexibility in the products and services offered. This strategy is viewed as providing an opportunity to increase revenues through creating a competitive advantage over other financial institutions. The Company also strives to remain operationally efficient to provide better profitability while enabling the Company to offer more competitive loan and deposit rates.

The principal sources of Company revenues and cash flow are: (i) interest and fees earned on loans made by the Company and Banks; (ii) interest on fixed income investments held by the Banks; (iii) fees on wealth management services provided by those Banks exercising trust powers; (iv) service fees on deposit accounts maintained at the Banks; (v) gain on sale of loans; and (vi) merchant and card fees. The Company’s principal expenses are: (i) interest expense on deposit accounts and other borrowings; (ii) credit loss expense; (iii) salaries and employee benefits; (iv) data processing costs associated with maintaining the Banks’ loan and deposit functions; (v) occupancy expenses for maintaining the Banks’ facilities; and (vi) professional fees. The largest component contributing to the Company’s net income is net interest income, which is the difference between interest earned on earning assets (primarily loans and investments) and interest paid on interest-bearing liabilities (primarily deposits and other borrowings). One of management’s principal functions is to manage the spread between interest earned on earning assets and interest paid on interest bearing liabilities in an effort to maximize net interest income while maintaining an appropriate level of interest rate risk.

The Company had net income of $5.9 million, or $0.67 per share, for the three months ended June 30, 2026, compared to net income of $4.5 million, or $0.51 per share, for the three months ended June 30, 2025. The Company had net income of $11.9 million, or $1.34 per share, for the six months ended June 30, 2026, compared to net income of $8.0 million, or $0.89 per share, for the six months ended June 30, 2025. The increase in earnings is primarily due to an increase in net interest income. Net interest income increased due to higher yields and average balances on investments, combined with a lower cost of funds driven by declining market rates and reduced borrowings.

35

Table of Contents

The following management discussion and analysis will provide a review of important items relating to:

[[GREPCENT_TABLE]]
[["\u25cf","Challenges, Risks and Uncertainties"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Critical Accounting Policies"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Non-GAAP Financial Measures"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Income Statement Review"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Balance Sheet Review"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Asset Quality Review and Credit Risk Management"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Liquidity and Capital Resources"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Forward-Looking Statements and Business Risks"]]
[[/GREPCENT_TABLE]]

Challenges, Risks and Uncertainties

Management has identified certain events or circumstances that may negatively impact the Company’s financial condition and results of operations in the future and is attempting to position the Company to best respond to those challenges. These challenges are addressed in the Company’s most recent Annual Report on Form 10-K filed on March 12, 2026.

Critical Accounting Policies

The discussion and analysis of the Company's financial condition and results of operations are based upon the Company's consolidated financial statements that have been prepared in accordance with GAAP. The preparation of the Company's financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses. These estimates are based upon historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The estimates and judgments that management believes involve the most complex and subjective estimates and judgments and have the most effect on the Company's reported financial position and results of operations are described as critical accounting policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 12, 2026. There have been no significant changes in the critical accounting policies or the assumptions and judgments utilized in applying these policies since December 31, 2025.

36

Table of Contents

Non-GAAP Financial Measures

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis. Management believes these non-GAAP financial measures are widely used in the financial institutions industry and provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on an FTE basis to GAAP (dollars in thousands).

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30,","","","Six Months Ended June 30,"],["","","2026","","","2025","","","2026","","","2025"],["Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP:"],["Net interest income (GAAP)","","$","16,382","","","$","13,466","","","$","31,813","","","$","26,381"],["Tax-equivalent adjustment (1)","","","109","","","","120","","","","221","","","","240"],["Net interest income on an FTE basis (non-GAAP)","","","16,491","","","","13,586","","","","32,034","","","","26,621"],["Average interest-earning assets","","$","2,072,045","","","$","2,048,346","","","$","2,067,363","","","$","2,054,226"],["Net interest margin on an FTE basis (non-GAAP)","","","3.18","%","","","2.65","%","","","3.10","%","","","2.59","%"]]
[[/GREPCENT_TABLE]]

(1) Computed on a tax-equivalent basis using an incremental federal income tax rate of 21 percent, adjusted to reflect the effect of the tax-exempt interest income associated with owning tax-exempt securities and loans.

37

Table of Contents

Income Statement Review for the Three Months ended June 30, 2026 and 2025

The following highlights a comparative discussion of the major components of net income and their impact for the three months ended June 30, 2026 and 2025:

AVERAGE BALANCES AND INTEREST RATES

The following two tables are used to calculate the Company’s non-GAAP net interest margin on an FTE basis. The first table includes the Company’s average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest-bearing liabilities. The net interest margin is equal to interest income less interest expense divided by average earning assets. Refer to the net interest income discussion following the tables for additional detail.

[[GREPCENT_TABLE]]
[["AVERAGE BALANCE SHEETS AND INTEREST RATES"],["","","Three Months Ended June 30,"],["","","2026","","","2025"],["","","Average","","","Revenue/","","","Yield/","","","Average","","","Revenue/","","","Yield/"],["","","balance","","","expense","","","rate","","","balance","","","expense","","","rate"],["ASSETS"],["(dollars in thousands)"],["Interest-earning assets"],["Loans (1)"],["Commercial","","$","87,049","","","$","1,351","","","","6.21","%","","$","94,535","","","$","1,410","","","","5.97","%"],["Agricultural","","","121,601","","","","1,920","","","","6.32","%","","","126,189","","","","2,075","","","","6.58","%"],["Real estate","","","1,052,554","","","","13,875","","","","5.27","%","","","1,052,915","","","","12,951","","","","4.92","%"],["Consumer and other","","","13,488","","","","185","","","","5.49","%","","","16,532","","","","231","","","","5.59","%"],["Total loans (including fees)","","","1,274,692","","","","17,331","","","","5.44","%","","","1,290,171","","","","16,667","","","","5.17","%"],["Investment securities"],["Taxable","","","628,930","","","","4,588","","","","2.92","%","","","567,859","","","","3,116","","","","2.19","%"],["Tax-exempt (2)","","","70,622","","","","519","","","","2.94","%","","","81,427","","","","570","","","","2.80","%"],["Total investment securities","","","699,552","","","","5,107","","","","2.92","%","","","649,286","","","","3,686","","","","2.27","%"],["Interest-bearing deposits with banks and federal funds sold","","","97,801","","","","949","","","","3.88","%","","","108,889","","","","1,252","","","","4.60","%"],["Total interest-earning assets","","","2,072,045","","","$","23,387","","","","4.51","%","","","2,048,346","","","$","21,605","","","","4.22","%"],["Noninterest-earning assets","","","62,979","","","","","","","","","","","","64,251"],["TOTAL ASSETS","","$","2,135,024","","","","","","","","","","","$","2,112,597"]]
[[/GREPCENT_TABLE]]

(1) Average loan balances include nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.

(2) Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 21%.

38

Table of Contents

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1132651/000143774926007976/atlo20251231_10k.htm
Complete FY 2025 MD&A: /company/ATLO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-12
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The following financial data of the Company for the three years ended December 31, 2023 through 2025 is derived from the Company's historical audited financial statements and related footnotes. The information set forth below should be read in conjunction with the consolidated financial statements and related notes contained elsewhere in this Annual Report.

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,"],["(dollars in thousands, except per share amounts)","","2025","","","2024","","","2023"],["STATEMENT OF INCOME DATA"],["Interest income","","$","87,093","","","$","82,607","","","$","74,301"],["Interest expense","","","31,431","","","","37,631","","","","29,676"],["Net interest income","","","55,662","","","","44,976","","","","44,625"],["Credit loss expense","","","1,037","","","","592","","","","789"],["Net interest income after credit loss expense","","","54,625","","","","44,384","","","","43,836"],["Noninterest income","","","11,170","","","","9,837","","","","9,215"],["Noninterest expense","","","41,929","","","","41,980","","","","40,162"],["Income before provision for income tax","","","23,866","","","","12,241","","","","12,889"],["Provision for income taxes","","","4,839","","","","2,023","","","","2,072"],["Net income","","$","19,027","","","$","10,218","","","$","10,817"],["DIVIDENDS AND EARNINGS PER SHARE DATA"],["Cash dividends declared**","","$","5,323","","","$","8,444","","","$","9,712"],["Cash dividends declared per share**","","$","0.60","","","$","0.94","","","$","1.08"],["Basic and diluted earnings per share","","$","2.14","","","$","1.14","","","$","1.20"],["Weighted average shares outstanding","","","8,895,197","","","","8,991,286","","","","8,992,167"],["BALANCE SHEET DATA"],["Total assets","","$","2,133,540","","","$","2,133,180","","","$","2,155,481"],["Net loans","","","1,280,222","","","","1,303,917","","","","1,277,812"],["Deposits","","","1,854,667","","","","1,846,682","","","","1,811,831"],["Stockholders' equity","","","207,894","","","","174,706","","","","165,788"],["Equity to assets ratio","","","9.74","%","","","8.19","%","","","7.69","%"],["FINANCIAL PERFORMANCE"],["Net income","","$","19,027","","","$","10,218","","","$","10,817"],["Average assets","","","2,104,305","","","","2,127,051","","","","2,140,034"],["Average stockholders' equity","","","191,287","","","","169,732","","","","153,530"],["Return on assets (net income divided by average assets)","","","0.90","%","","","0.48","%","","","0.51","%"],["Return on equity (net income divided by average equity)","","","9.95","%","","","6.02","%","","","7.05","%"],["Net interest margin (net interest income divided by average earning assets)*","","","2.75","%","","","2.22","%","","","2.20","%"],["Efficiency ratio (noninterest expense divided by noninterest income plus net interest income)","","","62.74","%","","","76.59","%","","","74.60","%"],["Dividend payout ratio (dividends per share divided by net income per share)**","","","28.04","%","","","82.46","%","","","90.00","%"],["Dividend yield (dividends per share divided by closing year-end market price)**","","","2.61","%","","","5.72","%","","","5.06","%"],["Equity to assets ratio (average equity divided by average assets)","","","9.09","%","","","7.98","%","","","7.17","%"]]
[[/GREPCENT_TABLE]]

* See page 32 for further discussion of this Non-GAAP financial measure.

** Beginning in August 2025 the dividends were declared and paid in the same quarter.  Previously dividends had been declared in one quarter and then paid in the subsequent quarter.  To convert to this new timing, the Company did not declare a dividend in the second quarter payable in the third quarter of 2025; rather the dividend typically paid in the third quarter was both declared and paid in the third quarter of 2025.

27

The following discussion is provided for the consolidated operations of the Company and its Banks. The purpose of this discussion is to focus on significant factors affecting the Company's financial condition and results of operations.

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes, including loans, deposits and wealth management services. Some Banks also offer investment services through a third-party broker-dealer. The Company employs 27 individuals to assist the Banks with financial reporting, human resources, marketing, audit, compliance, technology systems, property appraisals, training and the coordination of management activities, in addition to 233 full-time equivalent individuals employed by the Banks.

The Company’s primary competitive strategy is to utilize seasoned and competent Bank management and local decision-making authority to provide customers with prompt response times and flexibility in the products and services offered. This strategy is viewed as providing an opportunity to increase revenues through the creation of a competitive advantage over other financial institutions. The Company also strives to remain operationally efficient to improve profitability while enabling the Banks to offer more competitive loan and deposit rates.

The principal sources of Company revenues and cash flows are: (i) interest and fees earned on loans made or held by the Company and Banks; (ii) interest on investments, primarily on bonds, held by the Banks; (iii) fees on wealth management services; (iv) service charges on deposit accounts maintained at the Banks; (v) merchant and card fees; (vi) gain on the sale of loans held for sale; and (vii) securities gains. The Company’s principal expenses are: (i) interest expense on deposit accounts and other borrowings; (ii) salaries and employee benefits; (iii) data processing costs primarily associated with maintaining the Banks’ loan and deposit functions; (iv) occupancy expenses for maintaining the Banks’ facilities; (v) professional fees; and (vi) business development. The largest component contributing to the Company’s net income is net interest income, which is the difference between interest earned on earning assets (primarily loans and investments) and interest paid on interest-bearing liabilities (primarily deposit accounts and other borrowings). One of management’s principal functions is to manage the spread between interest earned on earning assets and interest paid on interest-bearing liabilities in an effort to maximize net interest income while maintaining an appropriate level of interest rate risk.

The Company reported net income of $19.0 million for the year ended December 31, 2025 compared to $10.2 million for the year ended December 31, 2024. This represents an increase in net income of 86.2% when comparing 2025 with 2024. The increase in earnings in 2025 from 2024 is primarily due to an increase in net interest income. Net interest income increased due to higher yields on loans and investments, combined with a lower cost of funds driven by declining market rates and reduced borrowings. Earnings per share for 2025 were $2.14 compared to $1.14 in 2024. All six Banks demonstrated profitable operations during 2025 and 2024.

The Company’s return on average equity for 2025 was 9.95% compared to 6.02% in 2024. The return on average assets for 2025 was 0.90% compared to 0.48% in 2024. The increase in return on average equity and return on average assets when comparing 2025 to 2024 was primarily a result of an increase in earnings.

The following discussion will provide a summary review of important items relating to:

[[GREPCENT_TABLE]]
[["","\u25cf","Challenges, Risks and Uncertainties"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Critical Accounting Policies"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Non-GAAP Financial Measures"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Income Statement Review"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Balance Sheet Review"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Asset Quality Review and Credit Risk Management"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Liquidity and Capital Resources"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Interest Rate Risk"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Inflation"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Forward-Looking Statements and Business Risks"]]
[[/GREPCENT_TABLE]]

28

Challenges, Risks and Uncertainties

Management has identified certain events or circumstances that have the potential to negatively impact the Company’s financial condition and results of operations in the future and is attempting to position the Company to best respond to those challenges.

[[GREPCENT_TABLE]]
[["","\u25cf","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. Increases in interest rates may negatively impact the Company\u2019s net interest margin if interest expense increases more quickly than interest income, thus placing downward pressure on net interest income. The Company\u2019s earning assets (primarily its loan and investment portfolio) have longer maturities than its interest-bearing liabilities (primarily deposits and other borrowings); therefore, in a rising interest rate environment, interest expense will tend to increase more quickly than interest income as the interest-bearing liabilities reprice more quickly than earning assets, resulting in a reduction in net interest income. In response to this challenge, the Banks model quarterly the changes in income that would result from various changes in interest rates. Based on this modeling, management believes Bank earning assets currently have the appropriate maturity and repricing characteristics to optimize earnings and the Banks\u2019 interest rate risk positions."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","If market interest rates in the three to five year term remain at low levels as compared to the short-term interest rates, the interest rate environment may present a challenge to the Company. The Company\u2019s earning assets (typically priced at market interest rates in the three to five year range) will reprice at lower interest rates, but the deposits generally reprice at short term interest rates, therefore the net interest income may decrease. Management believes Bank earning assets currently have the appropriate maturity and repricing characteristics to optimize earnings and the Banks\u2019 interest rate risk positions."]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ATLO/mda/fy2025/
All MD&A years: /company/ATLO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ATLO/mda/fy2024/): filed 2025-03-12; accession 0001437749-25-007223 (https://www.sec.gov/Archives/edgar/data/1132651/000143774925007223/atlo20241231_10k.htm)
- [FY 2023 MD&A](/company/ATLO/mda/fy2023/): filed 2024-03-08; accession 0001437749-24-007097 (https://www.sec.gov/Archives/edgar/data/1132651/000143774924007097/atlo20231231_10k.htm)
- [FY 2022 MD&A](/company/ATLO/mda/fy2022/): filed 2023-03-10; accession 0001437749-23-006159 (https://www.sec.gov/Archives/edgar/data/1132651/000143774923006159/atlo20221231_10k.htm)
- [FY 2021 MD&A](/company/ATLO/mda/fy2021/): filed 2022-03-11; accession 0001437749-22-006000 (https://www.sec.gov/Archives/edgar/data/1132651/000143774922006000/atlo20211231_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6021 National Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ATLO.md · JSON record: /company/ATLO.json · verified financials: /company/ATLO/financials.json / /company/ATLO/financials.csv · machine TOC for the whole site: /llms.txt