Loan growth helps offset decline in profits for Ames National
Ames National Corp. reported net income of $3.8 million, or 41 cents per share, for the quarter ended Sept. 30, down from $4.1 million, or 44 cents per share, a year ago, according to a release. The decline in profits was attributed to increased income tax expense, a higher provision for loan loss and higher data processing costs. Loan growth contributed to earnings. Average net loans were $50 million higher from the same quarter last year. A provision for loan losses of $235,000 was recognized in the third quarter of 2016, compared with $38,000 in the third quarter of 2015. Growth in the loan portfolio and a specific reserve on a newly impaired loan were the primary factors for the provision for loan losses. The holding company reported assets of $1.3 billion, a $3 million decrease from a year ago. The decrease in assets was due primarily to a decrease in securities and interest bearing deposits, which funded loan growth, Ames National said.