Ames National Corporation Annual Report 2014

FY2014 Annual Report · Ames National Corporation

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Ames National Corporation

405 5th Street, Box 846 | Ames, IA 50010
t (515) 232-6251 | f (515) 663-3033
www.amesnational.com
info@amesnational.com

MISSION
STATEMENT

MISSION
Ames National Corporation is a result-oriented financial services holding company providing
leadership, counsel and support to its community affiliate banks and superior performance
for its shareholders.

CORPORATE CULTURE
Provide an environment where our affiliates and employees can be successful and provide
products and services that enhance the financial well-being of customers and shareholders.

CORE VALUES
Excellence:

Striving to exceed expectations

Integrity:

Demonstrating high moral and ethical conduct

Leadership:

Creating and developing opportunities that benefit our employees, customers,
communities, and shareholders

Stability:

Maintaining financial strength and a dedicated staff to successfully serve the current
and future needs of our employees, customers, communities, and shareholders

Trust:

Acting in the best interest of our employees, customers, and shareholders

Community: Dedicated to serving our communities through local decision making, community

involvement and active boards of directors

TABLE OF CONTENTS

Ames National Corporation at a Glance . . . . . . . . . . . . . . 1
Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
10 Years on the NASDAQ . . . . . . . . . . . . . . . . . . . . . . . . . 5
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Five-Year Performance Record . . . . . . . . . . . . . . . . . . . . . 7
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Affiliate Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-11
Stock and Dividend Information . . . . . . . . . . . . . . . . . . . 12
Shareholder Information . . . . . . . . . . . . . . . . . . . . . . . . . 13

SHAREHOLDER
INFORMATION

Company Contact Information
Ames National Corporation
P.O. Box 846
405 5th Street
Ames, IA 50010
(515) 232-6251 | Fax (515) 663-3033
info@amesnational.com | www.amesnational.com

Company Officers

Thomas H. Pohlman President & CEO

John P. Nelson Vice President & CFO

John L. Pierschbacher Controller

Kevin G. Deardorff Vice President & Technology Director

Nicole J. Gebhart Vice President & Marketing Director

Matthew R. Hackbart Vice President
& Information Systems Asst. Manager

Jennifer J. Hanson Vice President & Human Resources Director

Tracy W. Laws Vice President & Auditor

Timothy J. Lupardus Vice President & Information Systems Manager

Joel P. Jacobsen Asst. Vice President & Compliance Officer

Lori J. Hill Asst. Corporate Secretary

Colin T. Richey Information Systems Officer

Independent Auditors
CliftonLarsonAllen LLP
West Des Moines, Iowa

Counsel
Nyemaster Goode, P.C.
Des Moines, Iowa

Annual Meeting
The Board of Directors of Ames National Corporation has established
Wednesday, April 29, 2015, at 4:30 p.m. as the date of the Annual
Meeting of Shareholders. Registration will begin at 4:00 p.m. We invite
all shareholders to attend the meeting, which will be held at Reiman
Gardens, 1407 University Boulevard, Ames, Iowa.

Market Makers
Ames National Corporation’s common stock is listed on the NASDAQ
Capital Market under the symbol “ATLO.” Market makers and brokers
in the stock include:

First Point Wealth Management , First National Bank, Ames
(515) 663-3074

Stifel Nicolaus | (515) 233-4064

Monroe Securities, Inc. | (800) 766-5560

Raymond James | (800) 800-4693

FTN Financial Group | (800) 456-5460

Stock Transfer Agent
Continental Stock Transfer & Trust
17 Battery Place
New York, NY 10004
(212) 509-4000
www.continentalstock.com

Form 10-K and Other Information
A copy of the Company’s Annual Report to the Securities and Exchange
Commission on Form 10-K will be available on the Securities and
Exchange Commission’s website at http://www.sec.gov and through
a link on the Company’s website, www.amesnational.com, at Financial
Information, SEC Filings on March 15, 2015. Additional information is
also available by contacting John Nelson, Vice President & CFO at
515-232-6251 or info@amesnational.com.

AMES NATIONAL CORPORATION
AT A GLANCE

Ames National Corporation (the “Company) is an Iowa-based bank
holding company. The Company was organized and incorporated on
January 21, 1975, under the laws of the State of Iowa to serve as a
holding company for its principal banking subsidiary, First National Bank,
Ames, Iowa. In 1983, the Company acquired the stock of the State Bank
& Trust Co. located in Nevada, Iowa; in 1991, the Company, through a
newly-chartered state bank known as Boone Bank & Trust Co., acquired
certain assets and assumed certain liabilities of the former Boone State
Bank & Trust Company located in Boone, Iowa; in 1995, the Company
acquired the stock of the Reliance State Bank located in Story City, Iowa;
and in 2002, the Company chartered and commenced operations of
United Bank & Trust NA, located in Marshalltown, Iowa. In 2012, Reliance
State Bank acquired two offices in Garner and Klemme, Iowa, and in
2014, First National Bank acquired three offices in West Des Moines and
Johnston, Iowa. Today, each Affiliate Bank is operated as a wholly-owned
subsidiary of the Company.

Each Affiliate Bank operates with a local board of directors and a local
bank president. All decisions are made locally which means customers
receive quick responses to questions, and services are customized to
meet customer needs in each community. The principal sources of
Company revenue are: interest and fees earned on loans made and held
by the Company and Affiliate Banks, interest on fixed income
investments, fees on wealth management services, service charges on
deposit accounts maintained by Affiliate Banks, gain on sale of loans,
securities gains and merchant and card fees. The Affiliate Banks’ lending
activities consist primarily of short-term and medium-term commercial,
agricultural and residential real estate loans, agricultural and business
operating loans and lines of credit, equipment loans, vehicle loans,
personal loans, home equity loans and lines of credit. Affiliate Banks also
offer a variety of demand, savings and time deposits, cash management
services, merchant credit card processing and safe deposit box services.
Convenient access to funds and account information is also available
through online banking, mobile banking, online bill pay, online statements
and debit cards.

The Company provides various services to the Affiliate Banks which
include: management assistance, internal auditing services, human
resources services, compliance management, marketing assistance, loan
review and technology support. Company staff handles the backroom
operations that make the Company more efficient so the Affiliate Bank
staff can focus on what they do best: banking and taking care of
customers’ financial needs.

The principal executive office of Ames National Corporation is located
at 405 5th Street, Ames, Iowa 50010. The Company’s phone number is
(515) 232-6251. More information about the Company can also be found
at www.amesnational.com.

RECENT RECOGNITIONS

• Recognized by the NASDAQ for its 10th Anniversary

as a Publicly Traded Company (12/14)

• Ranked as the 6th largest Iowa commercial bank

holding company based on total deposits (6/14)

• Ranked among the top 200 banks with assets

less than $2 billion based on a 3-year average ROE

by the American Banker Magazine (4/14)

• Ranked 25th on Bank Director’s Nifty 50 for

NYSE and NASDAQ-listed companies based on profitability

and capital levels (3/14)

LETTER TO
SHAREHOLDERS

NET INCOME

Year ended December 31,
2014
2013

$15,300,000
$14,000,000

ASSETS

Year ended December 31,
2014
2013

$1,301,000,000
$1,233,000,000

WEALTH MANAGEMENT
INCOME

Year ended December 31, 2014
Up 25% over 2013

ROAA

ROAE

2014
2013

1.21%
1.14%

10.09%
9.76%

...PROVIDING CLIENTS CUSTOMIZED
BANKING EXPERIENCES AND
EXCEEDING EXPECTATIONS.

We are pleased to present the 2014 Ames National Corporation Summary
Annual Report and highlight the Company’s financial performance and strategic
initiatives. As we reflect on 2014, we would like to thank our board of directors
and employees in helping us reach record earnings, assets, deposits and loans.
Reaching record levels is a direct result of your dedication and commitment to
helping our clients succeed.

Our team is focused on providing clients with customized banking experiences
and exceeding expectations. Whether we are assisting clients with buying their
first homes, financing business expansions, building long-term financial plans or
simply helping them log into mobile banking for the first time, our clients find
value in our local, personal and responsive approach to banking. This client-first
philosophy has created a loyal customer base and strong relationships that
produce financial results for both our clients and shareholders.

Financial Results.
Net income reached a record high of $15.3 million, or $1.64 per share, compared
to $14 million, or $1.50 per share in 2013, a 9.3 percent increase. The main
contributors to the growth in earnings were increases in net interest income, the
sale of one of our office buildings in Ames, Iowa, and higher wealth management
income. With an upturn in loan demand, the Company was able to put more dollars
to work in higher yielding loans compared to lower yielding investments. As a result,
the improvement in net interest income led to an increase in the Company’s net
interest margin of 3.31 percent for 2014 compared to 3.18 percent for 2013.

In addition to income generated through loans and securities, we are strategically
focused on building non-interest income through services like Wealth
Management. Income generated through Wealth Management grew from $2.2
million in 2013 to $2.7 million in 2014, up 25 percent. The consumer demand
for services, such as: financial management, trust services, financial planning
and estate planning continues to grow, and we have found a niche in delivering
financial expertise to assist clients with their short and long-term financial goals.
According to a 2013 survey on retirement from The PNC Financial Services
Group Inc., almost two-thirds of Americans between the ages of 35 and 70
surveyed had not yet taken steps to prepare retirement plans and approximately
10,000 baby boomers are retiring daily. Through our financial planning and
wealth management services, our clients are benefiting from our programs
designed to provide financial peace of mind through every life stage. In return,
our assets under management continue to rise.

The sale of our office building, which housed the First National Bank University
Office, resulted in an after-tax gain of $778,000, but also provided an opportunity
to enhance the Bank’s presence in Ames. During the fall of 2015, First National
Bank plans to open a new branch office in West Ames, complete with the latest in
Interactive Teller services. With an emphasis on technology coupled with personal
services, the new office will be designed with the future of banking in mind.

As a result of the improvement in net income, return on average assets rose to
1.21 percent for 2014, compared to 1.14 percent for the same period in 2013.

The Cost of Regulation.
We would be amiss if we didn’t mention the current regulatory environment.
Managing the 5,905 pages of proposed regulations as a part of the Dodd-Frank
has meant additional costs for banks of all sizes, both in terms of dollars paid for
implementation and banks’ ability to offer services. In some cases, clients have
become burdened by the added paperwork necessary for obtaining loans. The
regulatory costs have not only affected the clients, but have also had a direct
impact on non-interest expense. With the additional staff needed to implement
and monitor new regulatory processes, the Company has seen an ongoing
increase in auditing and compliance expenses. Although the cost of the current
regulatory environment is not unique to Ames National Corporation, we have
been working diligently to address the mandates efficiently and effectively. We
are fortunate to have an experienced compliance staff in place to address
mandates resulting from the ever-changing regulatory landscape.

Company Stock.
The Company’s stock, which is listed on the NASDAQ Capital Market under the
symbol ATLO, closed at $25.94 on December 31, 2014. During the year, the
price ranged from $20.24 to $26.87 with 3,214,500 shares traded. Ames
National Corporation returned $6,703,858, or $0.72 per share, to shareholders
through dividends in 2014.

In Conclusion.
We would like to recognize Dr. Charles Jons for his service on the Ames National
Corporation Board of Directors. Dr. Jons joined the First National Bank board in
1991 and the Ames National Corporation board in 1996. He has been a trusted
resource, providing guidance and assistance for both boards over the past 23
years. Thank you, Chuck, for your leadership and commitment to Ames National
Corporation.

This year marks the 40th anniversary for Ames National Corporation. We invite
you to join us at Reiman Gardens on April 29th as we celebrate this milestone at
the Annual Shareholders’ Meeting, highlight our financial results and look forward
to many new opportunities in 2015. Thank you for your ongoing support of Ames
National Corporation, and we encourage you to contact us if you have questions
prior to the meeting.

Return on average equity was also up and ended 2014 at 10.09 percent,
compared to 9.76 percent in 2013. The efficiency ratio was 53.37 percent in
2014, slightly over the 52.78 percent recorded in 2013 due to one-time costs
relating to the First Bank acquisition described below and other real estate owned
write-downs.

Growth.
As we continue to focus on strategies to enhance shareholder value, the Company
successfully completed a bank acquisition during 2014. First National Bank, the
Company’s largest subsidiary bank, acquired First Bank in West Des Moines,
Iowa, on August 29, 2014. The acquired loans totaled $45 million and acquired
deposits totaled $82 million. The Company welcomes our new clients and
employees and look forward to a mutually beneficial, long-term relationship. The
newly combined staffs of First National Bank have made outstanding progress with
the integration of the offices in West Des Moines and Johnston and are to be
commended for their significant efforts to ensure a smooth transition. We are also
pleased to report that the retention of loan and deposit clients has been favorable.
We are looking forward to new business development opportunities through the
expansion of our footprint in the Des Moines Metro area.

The First Bank purchase was the second acquisition for the Company in the past
two years. In April 2012, Reliance State Bank acquired two offices in Garner and
Klemme, Iowa. This growth strategy has proven to be successful. In fact, Reliance
State Bank’s net income grew from $1.8 million in 2012 to $2.4 million in 2014, a
33 percent increase. We know the importance of maintaining our service culture
as we continue to expand. Through our acquisition strategy, we have been
fortunate to find organizations and people with a similar focus on delivering
responsive, personal service and who believe in the value of our banking model.

Balance Sheet Review.
Assets reached a record level of $1.3 billion, $67.9 million higher compared to
December 31, 2013, primarily as a result of the First Bank acquisition. The loan
portfolio grew from $565 million as of December 31, 2013, to $658 million at
year-end 2014, representing a 16.6 percent increase. Commercial real estate,
1-4 family real estate and construction real estate made up the majority of the
growth in loans and is a good indication of an improving economy in our market
area. Deposits finished 2014 at $1.1 billion, up 4.0 percent from the $1.0 billion
recorded at 2013. Similar to loans, the increase in deposits was mainly due to
the First Bank acquisition.

The Company’s stockholders’ equity represented 11.9 percent of total assets as
of December 31, 2014, with all of the Company’s five affiliate banks continuing
to maintain strong capital levels. Total equity was $155 million as of December
31, 2014, compared to $142 million as of December 31, 2013. Capital is
impacted by earnings, dividends and the fair value of the investment portfolio.
The increase in stockholders’ equity was primarily the result of net income and
higher fair value on the securities available-for-sale.

Thomas H. Pohlman
President

Douglas C. Gustafson
Chairman

BOARD OF
DIRECTORS

BACK ROW, LEFT TO RIGHT:

FRONT ROW, LEFT TO RIGHT:

Warren R. Madden
Vice President for Business & Finance, Iowa State University

Douglas C. Gustafson
Retired Veterinarian, Boone Veterinary Hospital
and Chairman of the Company

Thomas H. Pohlman
President of the Company

Richard O. Parker
Attorney, Parker Law Firm

Steven D. Forth
Farmer

John P. Nelson
Vice President and Chief Financial Officer of the Company

Larry A. Raymon
Chief Executive Officer, Raymon Enterprises, Inc.

David W. Benson
Partner, Nyemaster Goode Attorneys at Law

Betty A. Baudler Horras
President, Baudler Enterprises, Inc. (marketing)

James R. Larson, II
President, Larson Development Corporation (real estate development)

Robert L. Cramer
Retired President and Chief Operating Officer
Fareway Stores, Inc. (grocery stores)

AMES NATIONAL CORPORATION RINGS IN
10 YEARS ON THE NASDAQ

Ten years ago, the Company's Board of Directors decided it was in the
best interest of shareholders to list our common shares on the NASDAQ
stock market to improve liquidity. In 2014, Ames National Corporation
celebrated its 10th anniversary as a publically-traded company in the
NASDAQ Capital Market.

In recognition of this milestone, Tom Pohlman, president of the Company,
and representatives from the board of directors, affiliate bank presidents,
and families were invited to ring the NASDAQ closing bell on December
2, 2014. We would like to thank our shareholders, board of directors and
employees for their ongoing support of the Ames National Corporation
mission. Through 40 years of managing the wide fluctuations in interest
rates, navigating the ever-changing regulatory environment, balancing
changes in technology and delivering the latest in banking products and
services, we have remained focused on doing what is right for our
customers and, in turn, enhancing shareholder value. We are proud of
our strong past performance and look forward to the many new growth
opportunities yet to come.

TRADE VOLUME

Average Shares per Day
2014
2005

12,800
7,300

NASDAQ TICKER SYMBOL

ATLO

FINANCIAL SNAPSHOT
December 31,
(in millions)

2014

2004

1975

Assets

$ 1,301.0

$ 839.8

$ 47.3

Deposits

$ 1,052.1

$ 658.2

$ 41.8

Capital

$ 154.7

$ 110.9

$ 4.5

Ames National Corporation was
organized and incorporated to
serve as a holding company for
First National Bank, Ames, Iowa.

The Company acquired the stock of
the State Bank & Trust Co. located
in Nevada, Iowa.

The Company, through a newly-
chartered state bank known as Boone
Bank & Trust Co., acquired the assets
of the former Boone State Bank & Trust
Company located in Boone, Iowa.

The Company acquired the stock of
the Randall-Story State Bank
located in Story City, Iowa.

The Company chartered United
Bank & Trust NA, located in
Marshalltown, Iowa.

Ames National Corporation
lists its stock on the NASDAQ
Capital Market.

First National Bank opens a new
office in Ankeny, Iowa.

Randall-Story State Bank acquired
two offices in Garner and Klemme,
Iowa and changed its name to
Reliance State Bank.

First National Bank, Ames, acquired
three offices in West Des Moines
and Johnston, Iowa.

FINANCIAL
HIGHLIGHTS

FOR THE YEAR

PERFORMANCE

2014

2013

2012

2011

2010

Net Income (in thousands)

$15,251

$13,954

$14,182

$13,921

$12,966

Return on

Average Assets
Average Equity

Efficiency Ratio

PER COMMON SHARE DATA

Basic and Diluted Earnings

Cash Dividends Declared

Dividend Payout Ratio

Dividend Yield

AT DECEMBER 31

BALANCE SHEET DATA (in thousands)

Total Assets

Net Loans

Deposits

1.21%
10.09%

53.37%

1.14%
9.76%

52.78%

1.24%
10.08%

52.33%

1.38%
10.82%

49.80%

1.40%
10.91%

50.12%

$1.64

$0.72

$1.50

$0.64

$1.52

$0.60

43.90%

42.67%

39.47%

2.8%

2.9%

2.7%

$1.48

$0.52

35.14%

2.7%

$1.37

$0.44

32.12%

2.0%

$1,301,031

$1,233,084

$1,217,692

$1,035,564

$962,975

$658,441

$564,502

$510,126

$438,651

$418,094

$1,052,123

$1,011,803

$1,004,732

$818,705

$743,862

Stockholders' Equity

$154,674

$ 142,106

$144,736

$134,557

$121,363

LOAN QUALITY

Allowance for loan losses to total loans

Net charge-offs to average outstanding loans

Non performing loans to total loans

CAPITAL

Tier 1 Risk-Based Capital Ratio

Total Equity/Total Assets

Market Price per Share

Closing

High

Low

1.32%

0.03%

0.37%

11.0%

11.9%

$25.94

$26.87

$20.24

1.50%

0.00%

0.44%

11.0%

11.5%

$22.39

$23.94

$18.50

1.50%

0.03%

1.07%

10.9%

11.9%

$21.90

$24.00

$18.30

1.77%

0.03%

1.81%

12.2%

13.0%

$19.50

$21.92

$14.15

1.77%

0.19%

1.48%

12.5%

12.6%

$21.67

$22.84

$16.61

FIVE-YEAR
PERFORMANCE RECORD

FIVE-YEAR FINANCIAL HIGHLIGHTS

AVERAGE TOTAL ASSETS

MILLIONS OF DOLLARS

AVERAGE DEPOSITS

MILLIONS OF DOLLARS

AVERAGE LOANS

MILLIONS OF DOLLARS

$929

$1,009

$1,143

$1226

$1263

$717

$792

$923

$1004

$1021

$418

$431

$483

$528

$584

$1,000

$900

$800

$700

$600

$500

$400

$300

2010

2011

2012

2013

2014

$600

$500

$400

$300

$200

$100

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

EARNINGS PER SHARE

DOLLARS

BOOK VALUE PER SHARE

DECLARED DIVIDENDS PER SHARE

DOLLARS

$1.37

$1.48

$1.52

$1.50

$1.64

$12.87 $14.45 $15.54

$15.26

$16.61

$0.44

$0.52

$0.60

$0.64

$0.72

$16.00

$15.50

$15.00

$14.50

$14.00

$13.50

$13.00

$12.00

$11.50

$11.00

$10.50

$10.00

2010

2011

2012

2013

2014

$.80

$.60

$.40

$.20

$.00

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

$1,200

$1,100

$1,000

$900

$800

$700

$600

$500

$400

$300

$1.60

$1.40

$1.20

$1.00

$.80

$.60

$.40

$.20

$.00

CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited)

December 31, 2014

December 31, 2013

ASSETS
Cash and due from banks
Federal funds sold
Interest bearing deposits in financial institutions
Securities available-for-sale
Loans receivable, net
Loans held for sale
Bank premises and equipment, net
Accrued income receivable
Other real estate owned
Deferred income taxes
Core deposit intangible, net
Goodwill
Other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Deposits

Demand, noninterest bearing
NOW accounts
Savings and money market
Time, $250,000 and over
Other time

Total deposits

Securities sold under agreements to repurchase

and federal funds purchased

FHLB advances and other borrowings
Dividend payable
Accrued expenses and other liabilities

Total liabilities

STOCKHOLDERS’ EQUITY

Common stock, $2 par value, authorized 18,000,000 shares; issued 9,310,913
shares as of December 31, 2014 and 9,432,915 shares as of December 31,
2013; outstanding 9,310,913 shares as of December 31, 2014 and 2013

Additional paid-in capital
Retained earnings

Accumulated other comprehensive income-net unrealized income

on securities available-for-sale

Treasury stock, at cost; 122,002 shares as of December 31, 2013

Total stockholders’ equity

Total liabilities and stockholders’ equity

23,730,257
6,000
31,463,382
542,502,381
658,440,998
704,850
15,956,989
7,471,023
8,435,885
2,633,177
1,730,231
6,732,216
1,223,328
1,301,030,717

188,725,609
298,581,556
321,700,422
36,169,601
206,946,069
1,052,123,257

51,265,011
37,467,737
1,675,964
3,824,330
1,146,356,299

18,621,826
20,878,728
110,701,847

4,472,017
–
154,674,418
1,301,030,717

24,270,031
–
23,628,117
580,039,080
564,501,547
295,618
11,892,329
7,437,673
8,861,107
5,027,103
1,029,564
5,600,749
501,242
1,233,084,160

179,946,472
299,788,852
289,307,102
36,839,069
205,921,683
1,011,803,178

39,616,644
34,540,526
1,489,746
3,527,882
1,090,977,976

18,865,830
22,651,222
102,154,498

451,132
(2,016,498)

142,106,184
1,233,084,160

CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (unaudited)

Years Ended December 31,

2014

2013

2012

27,196,859

25,433,950

24,761,633

INTEREST INCOME:

Loans
Securities

Taxable
Tax-exempt

Interest bearing deposits and federal funds sold

Total interest income

INTEREST EXPENSE:

Deposits
Other borrowed funds

Total interest expense
Net interest income

Provision for loan losses

Net interest income after
provision for loan losses

NONINTEREST INCOME:

Wealth Management Income
Service fees
Securities gains, net
Gain on sale of loans held for sale
Merchant and card fees
Gain on sale of premises and equipment, net
Other noninterest income

Total noninterest income

NONINTEREST EXPENSE:

Salaries and employee benefits
Data processing
Occupancy expenses
FDIC insurance assessments
Professional fees
Business development
Other real estate owned, net
Core deposit intangible amortization
Other operating expenses, net

Total noninterest expense
Income before income taxes

7,104,563
6,354,147
308,782
40,964,351

3,385,099
1,162,002
4,547,101
36,417,250
429,140

35,988,110

2,748,619
1,649,169
1,110,953
704,051
1,189,503
1,239,581
610,203
9,252,079

14,129,956
2,609,185
1,680,351
645,997
1,274,111
1,103,923
1,502,408
317,333
1,110,199
24,373,463
20,866,726

5,744,321
6,864,948
390,594
38,433,813

3,861,713
1,213,050
5,074,763
33,359,050
786,390

32,572,660

2,199,797
1,580,811
1,002,920
1,200,402
1,142,027
–
591,821
7,717,778

13,131,556
2,414,564
1,471,978
661,127
1,127,666
957,702
651,401
273,700
989,178
21,678,872
18,611,566

6,058,556
6,767,545
484,004
38,071,738

4,472,337
1,279,604
5,751,941
32,319,797
22,277

32,297,520

2,219,320
1,578,672
646,755
1,589,122
1,055,613
–
605,753
7,435,384

12,465,403
2,239,003
1,462,898
664,285
1,224,093
941,090
482,904
196,736
1,126,541
20,802,953
18,929,951

4,747,643

14,182,308

1.52

INCOME TAX EXPENSE

NET INCOME

Basic and diluted earnings per share

5,615,519

15,251,207

1.64

4,657,922

13,953,644

1.50

AFFILIATE
BANKS

Organized: The former Boone State Bank & Trust Co., was organized in 1883. In 1992, the Bank was
organized by the Company under a new state charter in connection with a purchase and assumption
transaction, whereby Boone Bank & Trust Co. purchased certain assets and assumed certain liabilities of the
former Boone State Bank & Trust Co. in exchange for a cash payment.

Financial Highlights: As of December 31, 2014, Boone Bank had capital of $13,653,000 and 26 full-time
equivalent employees. Boone Bank had net income for the years ended December 31, 2014, 2013 and 2012 of
approximately $1,614,000, $1,533,000 and $1,764,000, respectively. Total assets as of December 31, 2014,
2013 and 2012 were approximately $125,776,000, $128,551,000 and $123,829,000, respectively.

Locations:
Main Office:
716 8th Street, Boone

Boone Branch Office:
1326 S. Story Street, Boone

Contact Information:
Phone:

(515) 432-6200

Fax:

Web:

(515) 432-3312

www.boonebankiowa.com

Email:

service@boonebankiowa.com

Board Of Directors: Back Row, Left to Right: Robert L. Cramer, Richard D. Blomgren,

Front Row, Left to Right: William S. Zinnel, Thomas H. Pohlman, Jeffrey K. Putzier

Douglas C. Gustafson, DVM, Patrick J. McMullan

Organized: The Bank was organized in 1903 and became a wholly-owned subsidiary of the Company in
1975 through a bank holding company reorganization, whereby those shareholders of First National exchanged
all of their First National stock for stock in the Company. In 2014, First National Bank acquired offices in West
Des Moines and Johnston, Iowa, with a purchase and assumption transaction whereby First National Bank
purchased certain assets and assumed certain liabilities in exchange for a cash payment.

Financial Highlights: As of December 31, 2014, First National had capital of $69,400,000 and 111 full-
time equivalent employees. First National had net income for the years ended December 31, 2014, 2013 and
2012 of approximately $7,490,000, $7,200,000 and $7,193,000, respectively. Total assets as of December 31,
2014, 2013 and 2012 were approximately $706,185,000, $629,414,000 and $616,287,000, respectively.

Contact Information:
(515) 232-5561
Phone:

Fax:

Web:

(515) 232-5778

www.FNBames.com

Email:

info@FNBames.com

Locations:
Main Office:
405 5th Street, Ames

West Office:
119 Stanton, Ames

North Grand Office:
2406 Grand Avenue, Ames

Ankeny Office:
1205 North Ankeny Blvd., Ankeny

Johnston Office:
8460 Birchwood Court, Johnston

West Des Moines Offices:
West Glen: 5625 Mills Civic Parkway, West Des Moines

Valley Junction: 301 5th Street, West Des Moines

Board Of Directors: Back Row, Left to Right: Warren R. Madden, Scott T. Bauer, David W. Benson

Front Row, Left to Right: Charles D. Jons, Lisa M. Eslinger, Betty A. Baudler Horras,

Thomas H. Pohlman,Terrill L. Wycoff, James R. Larson, II

John R. Linch

Organized: Reliance State Bank, formerly known as “Randall-Story State Bank,” Story City, Iowa, is an Iowa,
state-chartered, FDIC insured commercial bank. Organized in 1928, Reliance Bank was acquired by the
Company in 1995 through a stock transaction whereby the then shareholders of Reliance Bank exchanged all
their Reliance Bank stock for stock in the Company. In 2012, Reliance Bank acquired the Garner, Iowa and
Klemme, Iowa offices with a purchase and assumption transaction whereby Reliance Bank purchased certain
assets and assumed certain liabilities in exchange for a cash payment.

Financial Highlights: As of December 31, 2014, Reliance Bank had capital of $26,728,000 and 30 full-
time equivalent employees. Reliance Bank had net income for the years ended December 31, 2014, 2013 and
2012 of approximately $2,392,000, $2,172,000 and $1,833,000, respectively. Total assets as of December 31,
2014, 2013 and 2012 were approximately $219,474,000, $221,597,000 and $221,799,000, respectively.

Locations:
606 Broad Street, Story City

175 E. 3rd Street, Garner

100 E. Main Street, Klemme

Contact Information:
(515) 733-4396
Phone:

Fax:

Web:

(515) 733-2068

www.RSBiowa.com

Email:

info@rsbiowa.com

Board Of Directors: Back Row, Left to Right: Harold E. Thompson, Cory K. Milbrandt, Michael M. Hrubes, Elaine C. Tekippe, Steven D. Forth, Gary G. Vulgamott

Front Row, Left to Right: Neil W. Fell, John P. Nelson, Richard J. Schreier

Organized: State Bank & Trust Co. was organized in 1939 and acquired by the Company in 1983 through a stock
transaction, whereby those shareholders of State Bank exchanged all of their State Bank stock for stock in the Company.

Financial Highlights: As of December 31, 2014, State Bank had capital of $17,890,000 and 23 full-time
equivalent employees. State Bank had net income for the years ended December 31, 2014, 2013 and 2012 of
approximately $2,280,000, $2,122,000 and $2,208,000, respectively. Total assets as of December 31, 2014,
2013 and 2012 were approximately $157,894,000, $154,405,000 and $151,859,000, respectively.

Locations:
Main Office:
1025 6th Street, Nevada

Colo Office:
405 Main Street, Colo

Contact Information:
Phone:

(515) 382-2191

Fax:

Web:

(515) 382-3826

www.banksbt.com

Email:

info@banksbt.com

Board Of Directors: Back Row, Left to Right: Dan E. Johnson, Stephen C. McGill, Richard O. Parker, James M. Kurtenbach

Front Row, Left to Right: Laurie L. Henry, Thomas H. Pohlman, Michelle R. Cassabaum

Organized: United Bank & Trust, n.a. was chartered as a national bank in June 2002. The bank opened a
second office in 2006.

Financial Highlights: As of December 31, 2014, United Bank had capital of $13,883,000 and 23 full-time
equivalent employees. United Bank had net income for the years ended December 31, 2014, 2013 and 2012 of
approximately $1,110,000, $1,103,000 and $1,269,000, respectively. Total assets as of December 31, 2014,
2013 and 2012 were approximately $107,000,000, $111,420,000 and $107,627,000, respectively.

Locations:
Main Office:
2101 S. Center Street, Marshalltown
Courthouse Branch:
29 S. Center Street, Marshalltown

Contact Information:
(641) 753-5900
Phone:

Fax:

Web:

(641) 753-0800

www.ubtna.com

Email:

info@ubtna.com

Board Of Directors: Back Row, Left to Right: Keith R. Brown, Kathy L. Baker, Dale L. Ites

Middle Row, Left to Right: John S. Wise, Thomas H. Pohlman
Front Row, Left to Right: Larry A. Raymon, Curtis A. Hoff, Kevin L. Swartz

STOCK & DIVIDEND
INFORMATION

Market Price & Dividend Information
The Company’s common stock is traded on the NASDAQ Capital Market under the symbol “ATLO.”
Trading in the Company’s common stock is, however, relatively limited. The closing price of the
Company’s common stock was $25.94 on December 31, 2014.

Below is a summary of the Company’s high and low sales price for the common stock on a per share
basis during the last two years, based on information provided to and gathered by the Company on an
informal basis. The comparison also outlines the Company’s declared cash dividends during the past two
years. The Company declared aggregate annual cash dividends in 2014 and 2013 of $6,704,000 and
$5,959,000, respectively, or $0.72 per share in 2014 and $0.64 per share in 2013.

Market Price & Dividend Two-Year Comparison

Quarter

High

2014

MARKET PRICE

$23.50

$23.35

$24.37

Low

$20.24

$21.15

$22.13

$26.87

$21.63

CASH
DIVIDENDS

2013

MARKET PRICE

Declared

Quarter

High

$0.18

1st

2nd

3rd

4th

$22.91

$23.15

$23.94

$23.05

Low

$19.92

$18.50

$19.87

$21.09

CLOSING
PRICE

$22.04

$23.14

$22.35

$25.94

CLOSING
PRICE

$20.86

$22.76

$22.41

$22.39

CASH
DIVIDENDS

Declared

$0.16

1st

2nd

3rd

4th

MISSION
STATEMENT

CORPORATE CULTURE
Provide an environment where our affiliates and employees can be successful and provide
products and services that enhance the financial well-being of customers and shareholders.

CORE VALUES
Excellence:

Striving to exceed expectations

Integrity:

Demonstrating high moral and ethical conduct

Leadership:

Creating and developing opportunities that benefit our employees, customers,
communities, and shareholders

Stability:

Maintaining financial strength and a dedicated staff to successfully serve the current
and future needs of our employees, customers, communities, and shareholders

Trust:

Acting in the best interest of our employees, customers, and shareholders

Community: Dedicated to serving our communities through local decision making, community

involvement and active boards of directors

TABLE OF CONTENTS

SHAREHOLDER
INFORMATION

Company Contact Information
Ames National Corporation
P.O. Box 846
405 5th Street
Ames, IA 50010
(515) 232-6251 | Fax (515) 663-3033
info@amesnational.com | www.amesnational.com

Company Officers

Thomas H. Pohlman President & CEO

John P. Nelson Vice President & CFO

John L. Pierschbacher Controller

Kevin G. Deardorff Vice President & Technology Director

Nicole J. Gebhart Vice President & Marketing Director

Matthew R. Hackbart Vice President
& Information Systems Asst. Manager

Jennifer J. Hanson Vice President & Human Resources Director

Tracy W. Laws Vice President & Auditor

Timothy J. Lupardus Vice President & Information Systems Manager

Joel P. Jacobsen Asst. Vice President & Compliance Officer

Lori J. Hill Asst. Corporate Secretary

Colin T. Richey Information Systems Officer

Independent Auditors
CliftonLarsonAllen LLP
West Des Moines, Iowa

Counsel
Nyemaster Goode, P.C.
Des Moines, Iowa

Market Makers
Ames National Corporation’s common stock is listed on the NASDAQ
Capital Market under the symbol “ATLO.” Market makers and brokers
in the stock include:

First Point Wealth Management , First National Bank, Ames
(515) 663-3074

Stifel Nicolaus | (515) 233-4064

Monroe Securities, Inc. | (800) 766-5560

Raymond James | (800) 800-4693

FTN Financial Group | (800) 456-5460

Stock Transfer Agent
Continental Stock Transfer & Trust
17 Battery Place
New York, NY 10004
(212) 509-4000
www.continentalstock.com

Ames National Corporation

405 5th Street, Box 846 | Ames, IA 50010
t (515) 232-6251 | f (515) 663-3033
www.amesnational.com
info@amesnational.com