# EDGAR Filing Document

**Accession Number:** 0001132651
**File Stem:** 0001437749-25-031265
**Filing Date:** 2025-10
**Character Count:** 31759
**Document Hash:** 742d9a6569c47c43e503c3669dbc0c13
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-031265.hdr.sgml**: 20251017

**ACCESSION NUMBER**: 0001437749-25-031265

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251017

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251017

**DATE AS OF CHANGE**: 20251017

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMES NATIONAL CORP
- **CENTRAL INDEX KEY:** 0001132651
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 421039071
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-32637
- **FILM NUMBER:** 251400982

**BUSINESS ADDRESS:**
- **STREET 1:** PO BOX 846
- **CITY:** AMES
- **STATE:** IA
- **ZIP:** 50010
- **BUSINESS PHONE:** 5152326251

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 846
- **CITY:** AMES
- **STATE:** IA
- **ZIP:** 50010

?xml version='1.0' encoding='ASCII'? atlo20250820_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**October 17, 2025**

Date of Report (Date of Earliest Event Reported)

**AMES NATIONAL CORPORATION**

(Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| **Iowa** | **0-32637** | **42-1039071** |
| (State or Other Jurisdiction of <br> Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer<br> Identification No.) |

---

**323 Sixth Street**

**Ames, Iowa 50010**

(Address of Principal Executive Offices) (Zip Code)

**(515) 232-6251**

**NOT APPLICABLE**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common stock | ATLO | NASDAQ Capital Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition**

On October 17, 2025, Ames National Corporation issued a News Release announcing financial results for the three and nine months ended September 30, 2025. A copy of the News Release is furnished as Exhibit 99.1.

**Item 9.01 Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits:

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| 99.1 | [News Release dated October 17, 2025](ex_855640.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **AMES NATIONAL CORPORATION** | **AMES NATIONAL CORPORATION** |
| Date: October 17, 2025 | By: | /s/ *John P. Nelson* |
|  |  | John P. Nelson, Chief Executive Officer and President |
|  |  | Principal Executive Officer |

---

## Exhibit 99.1

EXHIBIT 99.1

---

| | | |
|:---|:---|:---|
| **NEWS RELEASE** | CONTACT: | JOHN P. NELSON |
| FOR IMMEDIATE RELEASE |  | CEO AND PRESIDENT |
|  |  | (515) 232-6251 |
| October 17, 2025 |  |  |

---

![anc01.jpg](anc01.jpg)

**AMES NATIONAL CORPORATION** 

**ANNOUNCES EARNINGS FOR THE third QUARTER OF 2025** 

Ames, Iowa – Ames National Corporation (Nasdaq: ATLO; the "Company") today reported net income for the third quarter of 2025 of $4.6 million, or $0.51 per share, compared to $2.2 million, or $0.25 per share, earned in the third quarter of 2024. For the nine months ended September 30, 2025, net income for the Company totaled $12.5 million, or $1.41 per share, compared to $6.7 million, or $0.75 per share earned in the same period of 2024. The increase in earnings 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.

**INCOME STATEMENT HIGHLIGHTS** *(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended |
|  | September 30, | September 30, | September 30, | September 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Net income (in thousands) | $4559 | $2217 | $12513 | $6705 |
| Earnings per share - basic and diluted | $0.51 | $0.25 | $1.41 | $0.75 |
| Return on average assets | 0.88% | 0.42% | 0.79% | 0.42% |
| Return on average equity | 9.31% | 5.12% | 8.92% | 5.37% |
| Efficiency ratio | 61.76% | 77.87% | 64.10% | 78.47% |
| Net interest margin | 2.83% | 2.21% | 2.67% | 2.16% |

---

**COMPANY STOCK HIGHLIGHTS** *(unaudited)*

---

| | |
|:---|:---|
|  | As of or for the |
|  | three months ended |
|  | September 30, |
| Company Stock (ATLO) | 2025 |
| Closing price | $20.22 |
| Price range | $17.75 - 20.89 |
| Book value per common share | $22.56 |
| Cash dividend declared | $0.20 |
| Dividend yield | 3.96% |

---

**BALANCE SHEET HIGHLIGHTS** *(unaudited)*

---

| | | |
|:---|:---|:---|
|  | September 30, | September 30, |
| (Dollars in thousands) | 2025 | 2024 |
| Assets | $2107999 | $2123173 |
| Loans receivable, net | 1275794 | 1295773 |
| Deposits | 1832819 | 1801721 |
| Stockholders' equity | 200592 | 183394 |
| Capital ratio | 9.52% | 8.64% |

---

------

**Third Quarter 2025 Results:**

Third quarter 2025 loan interest income was $658 thousand higher than third quarter 2024 and was primarily due to improved yield on the loan portfolio. Interest income from investment securities increased by $289 thousand during this same period due to maturities reinvested at higher rates. Deposit interest expense decreased $1.1 million during this same period due primarily to decreases in market rates. Other borrowed funds interest expense decreased $726 thousand during the same period due primarily to reduced borrowings. Third quarter 2025 net interest income totaled $14.0 million, an increase of $3.0 million, or 26.8%, compared to the same quarter a year ago. These factors were the primary contributors to the Company's net interest margin improving to 2.83% for the quarter ended September 30, 2025 as compared to 2.21% for the quarter ended September 30, 2024 and 2.65% for the quarter ended June 30, 2025.

A credit loss expense of $627 thousand was recognized in the third quarter of 2025 as compared to $371 thousand in the third quarter of 2024. Net loan recoveries for the quarter ended September 30, 2025 totaled $344 thousand compared to net loan charge-offs totaled $10 thousand for the quarter ended September 30, 2024. The credit loss expense in 2025 was primarily due to an increase in specific reserves in the commercial real estate and operating loan portfolios. The recovery in the third quarter 2025 was on a commercial loan relationship that was charged off in the second quarter 2025.

Noninterest income for the third quarter of 2025 totaled $2.5 million as compared to $2.4 million in the third quarter of 2024, an increase of 5.0%. The increase is primarily due to an increase in wealth management income due to growth in assets under management and new account relationships.

Noninterest expense for the third quarter of 2025 totaled $10.2 million compared to $10.5 million recorded in the third quarter of 2024, a decrease of 2.5%. The decrease in noninterest expense is primarily due to $449 thousand of consultant fees for certain contract negotiations completed in 2024. The efficiency ratio was 61.76% for the third quarter of 2025 as compared to 77.87% in the third quarter of 2024. The efficiency ratio continues to improve as net interest margin increases and noninterest expense is lower than the prior year.

Income tax expense for the third quarter of 2025 totaled $1.2 million compared to $397 thousand recorded in the third quarter of 2024. The effective tax rate was 20% and 15% for the quarters ended September 30, 2025 and 2024, respectively. The lower than expected tax rate in 2025 and 2024 was primarily due to tax-exempt interest income and New Markets Tax Credits.

**Nine Months 2025 Results:**

For the nine months ended September 30, 2025 loan interest income was $2.0 million higher than the first nine months of 2024 and was primarily due to improved yield on the loan portfolio. Interest-bearing deposits with banks and federal funds sold interest income increased by $1.2 million during this same period due to higher average balances. Deposit interest expense decreased $2.1 million during this same period due primarily to decreases in market rates. Other borrowed funds interest expense decreased $2.4 million during the same period due primarily to reduced borrowings. The net interest income for the nine months ended September 30, 2025 totaled $40.4 million, an increase of $7.6 million, or 23.1%, compared to the same period a year ago. These factors were the primary contributors to the Company's net interest margin improving to 2.67% for the nine months ended September 30, 2025 as compared to 2.16% for the nine months ended September 30, 2024.

A credit loss expense of $1.7 million was recognized in the nine months ended September 30, 2025 as compared to $722 thousand in the nine months ended September 30, 2024. Net loan charge-offs for the nine months ended September 30, 2025 totaled $812 thousand compared to net loan charge-offs of $6 thousand for the nine months ended September 30, 2024. The credit loss expense in 2025 was primarily due to an increase in specific reserves in the commercial real estate and operating loan portfolios. The charge-offs in 2025 were primarily related to one commercial loan relationship.

Noninterest income for the nine months ended September 30, 2025 totaled $7.7 million as compared to $7.2 million in the nine months ended September 30, 2024, an increase of 7.1%. The increase in noninterest income is primarily due to an increase in wealth management income due to growth in assets under management and new account relationships.

Noninterest expense for the nine months ended September 30, 2025 totaled $30.9 million compared to $31.4 million recorded in the nine months ended September 30, 2024, a decrease of 1.8%. The decrease in noninterest expense is primarily due to $799 thousand of consultant fees for certain contract negotiations completed in 2024. The efficiency ratio was 64.10% for the nine months ended September 30, 2025 as compared to 78.47% in the nine months ended September 30, 2024. The efficiency ratio continues to improve as net interest margin increases and noninterest expense is lower than the prior year.

Income tax expense for the nine months ended September 30, 2025 totaled $3.1 million compared to $1.2 million recorded in the nine months ended September 30, 2024. The effective tax rate was 20% and 15% for the nine months ended September 30, 2025 and 2024, respectively. The lower than expected tax rate in 2025 and 2024 was primarily due to tax-exempt interest income and New Markets Tax Credits.

------

**Balance Sheet Review:**

As of September 30, 2025, total assets were $2.1 billion, a decrease of $15.2 million, as compared to September 30, 2024. The decrease in assets was primarily due to a decrease in securities available-for-sale and loans receivable, partially offset by an increase in interest-bearing deposits in financial institutions.

Securities available-for-sale as of September 30, 2025 decreased to $650.7 million from $688.6 million as of September 30, 2024. The decrease in securities available-for-sale is primarily due to maturities in excess of purchases, partially offset by lower unrealized losses in the investment portfolio. The Company's investment portfolio had an expected duration of 3.0 years as of September 30, 2025. There are approximately $96 million of investments maturing within one year at an average yield of approximately 1.5%.

Net loans as of September 30, 2025 decreased to $1.28 billion as compared to $1.30 billion as of September 30, 2024, a decrease of 1.5%. Substandard loans were $29.7 million and $28.3 million as of September 30, 2025 and 2024, respectively. The increase in substandard loans is primarily due to one multi-family real estate loan with an increase in vacancy rates. Substandard-impaired loans were $18.8 million and $16.9 million as of September 30, 2025 and 2024, respectively. The increase in substandard-impaired loans is primarily due to weakening in the commercial real estate and agricultural loan portfolios. Some commercial real estate loans are experiencing a decline in occupancy rates and collateral valuation, while the agricultural portfolio was primarily impacted by one agricultural loan relationship. There are approximately $315 million of loans maturing within one year at an average yield of approximately 5.8%.

The allowance for credit losses on September 30, 2025 totaled $18.0 million or 1.39% of loans, compared to $17.6 million, or 1.34% of loans, as of September 30, 2024. The increase in the allowance for credit losses is primarily due to an increase in specific reserves.

Deposits totaled $1.83 billion as of September 30, 2025, a increase of 1.7%, compared to $1.80 billion recorded as of September 30, 2024. The increase in deposits is primarily due to an increase in time deposits and public funds, partially offset by lower balances in retail and commercial checking and money market accounts as customers seek higher interest rates. Deposit balances fluctuate as customers' liquidity needs vary and could be impacted by prevailing market interest rates, competition, and economic conditions. Approximately 16% of deposits are tied to external indexes as of September 30, 2025. Deposit interest expense related to these deposits can be more volatile than other deposit products in a changing interest rate environment.

Other borrowings decreased to $23.5 million as of September 30, 2025 compared to $83.1 million as of September 30, 2024. The Company has continued to reduce borrowings as investments have matured.

The Company's stockholders' equity represented 9.5% of total assets as of September 30, 2025 with all of the Company's six affiliate banks considered well-capitalized as defined by federal capital regulations. Total stockholders' equity was $200.6 million as of September 30, 2025, compared to $183.4 million as of September 30, 2024. The increase in stockholders' equity of $17.2 million was primarily the result of a decrease in unrealized losses on the investment portfolio and retention of net income in excess of dividends.

**Share Repurchase Program**

For the period July 1, 2025 through September 30, 2025, under the repurchase program that was announced in November 2024, which allowed for the repurchase of 100,000 shares of common stock, the Company repurchased 6,522 shares of its common stock at an average price of $18.73 per share and a total cost of $122 thousand. There were no remaining shares available to be repurchased under that repurchase program as of September 30, 2025.

A stock repurchase program was announced in August 2025, authorizing the repurchase of 200,000 shares of common stock. There were 200,000 shares available to be repurchased under that repurchase program as of September 30, 2025.

The weighted average outstanding shares for the three months ended September 30, 2025 and 2024 was 8,894,152 and 8,992,167, respectively. The weighted average outstanding shares for the nine months ended September 30, 2025 and 2024 was 8,903,933 and 8,992,167, respectively. The Company had no potentially dilutive securities outstanding during the periods presented.

**Cash Dividend Announcement**

On August 13, 2025, the Company declared a quarterly cash dividend on common stock, payable on September 15, 2025 to stockholders of record as of September 1, 2025, equal to $0.20 per share.

------

**About Ames National Corporation**

Ames National Corporation affiliate Iowa banks are First National Bank, Ames; Boone Bank & Trust Co., Boone; State Bank & Trust Co., Nevada; Reliance State Bank, Story City; United Bank & Trust Co., Marshalltown; and Iowa State Savings Bank, Creston, Iowa.

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this News Release, including forward-looking statements concerning the Company's future performance and asset quality. Forward-looking statements contained in this News Release are not historical facts and are based on management's current beliefs, assumptions, predictions and expectations of future events, including the Company's future performance, taking into account all information currently available to management. These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management's control. If a change occurs, the Company's business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "forecasts", "continuing," "ongoing," "expects," "views," "intends" and similar words or phrases. The risks and uncertainties that may affect the Company's future performance and asset quality include, but are not limited to, the following: national, regional and local economic conditions and the impact they may have on the Company and its customers; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company's loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses as dictated by new market conditions or regulatory requirements; changes in local, national and international economic conditions, including rising inflation rates; fiscal and monetary policies of the U.S. government; the imposition of tariffs and retaliatory tariffs; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company's business, including those discussed under the headings "Forward-Looking Statements and Business Risks" and "Risk Factors" in the Company's Annual Report on Form 10-K for the year-ended December 31, 2024. Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on which such statements are made. The Company undertakes no obligation to revise or update such forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

------

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| |
|:---|
| **AMES NATIONAL CORPORATION AND SUBSIDIARIES** |
| **Consolidated Balance Sheets** *(unaudited)* |
| *(in thousands, except share and per share data)* |

---

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
| **ASSETS** | **2025** | **2024** |
| Cash and due from banks | $22706 | $22660 |
| Interest-bearing deposits in financial institutions and federal funds sold | 85455 | 36309 |
| **Total cash and cash equivalents** | 108161 | 58969 |
| Interest-bearing time deposits | 5678 | 6167 |
| Securities available-for-sale | 650660 | 688595 |
| Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, at cost | 2891 | 5186 |
| Loans receivable, net | 1275794 | 1295773 |
| Loans held for sale | 888 | 338 |
| Bank premises and equipment, net | 21008 | 21858 |
| Accrued income receivable | 15001 | 15261 |
| Bank-owned life insurance | 3279 | 3193 |
| Deferred income taxes, net | 8606 | 11138 |
| Intangible assets, net | 861 | 1170 |
| Goodwill | 12424 | 12424 |
| Other assets | 2748 | 3101 |
| **Total assets** | $2107999 | $2123173 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| LIABILITIES |  |  |
| Deposits |  |  |
| Noninterest-bearing checking | $310155 | $335469 |
| Interest-bearing checking | 658686 | 612017 |
| Savings and money market | 526935 | 535096 |
| Time, $250 and over | 92330 | 79538 |
| Other time | 244713 | 239601 |
| **Total deposits** | 1832819 | 1801721 |
| Securities sold under agreements to repurchase | 40623 | 42756 |
| Other borrowings | 23502 | 83101 |
| Dividends payable |  | 1798 |
| Accrued interest payable | 2485 | 3045 |
| Accrued expenses and other liabilities | 7978 | 7358 |
| **Total liabilities** | 1907407 | 1939779 |
| STOCKHOLDERS' EQUITY |  |  |
| Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 8,892,167 and 8,992,167 shares as of September 30, 2025 and 2024, respectively | 17784 | 17984 |
| Additional paid-in capital | 12798 | 14253 |
| Retained earnings | 191235 | 180505 |
| Accumulated other comprehensive (loss) | (21225) | (29348) |
| **Total stockholders' equity** | 200592 | 183394 |
| **Total liabilities and stockholders' equity** | $2107999 | $2123173 |

---

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| |
|:---|
| **AMES NATIONAL CORPORATION AND SUBSIDIARIES** |
| **Consolidated Statements of Income** *(unaudited)* |
| *(in thousands, except per share data)* |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Interest and dividend income: |  |  |  |  |
| Loans, including fees | $17409 | $16751 | $50750 | $48793 |
| Securities: |  |  |  |  |
| Taxable | 3344 | 2985 | 9300 | 9104 |
| Tax-exempt | 411 | 481 | 1314 | 1524 |
| Other interest and dividend income | 689 | 495 | 3092 | 1937 |
| **Total interest and dividend income** | 21853 | 20712 | 64456 | 61358 |
| Interest expense: |  |  |  |  |
| Deposits | 7173 | 8278 | 21979 | 24037 |
| Other borrowed funds | 631 | 1357 | 2047 | 4466 |
| **Total interest expense** | 7804 | 9635 | 24026 | 28503 |
| **Net interest income** | 14049 | 11077 | 40430 | 32855 |
| Credit loss expense | 627 | 371 | 1697 | 722 |
| **Net interest income after credit loss expense** | 13422 | 10706 | 38733 | 32133 |
| Noninterest income: |  |  |  |  |
| Wealth management income | 1374 | 1242 | 4336 | 3913 |
| Service fees | 402 | 399 | 1150 | 1062 |
| Securities gains (losses), net |  |  |  | (165) |
| Gain on sale of loans held for sale | 170 | 112 | 395 | 361 |
| Merchant and card fees | 342 | 426 | 1082 | 1211 |
| Other noninterest income | 246 | 234 | 759 | 827 |
| **Total noninterest income** | 2534 | 2413 | 7722 | 7209 |
| Noninterest expense: |  |  |  |  |
| Salaries and employee benefits | 6374 | 6291 | 19226 | 18965 |
| Data processing | 1497 | 1475 | 4305 | 4478 |
| Occupancy expenses, net | 754 | 745 | 2254 | 2238 |
| FDIC insurance assessments | 253 | 281 | 788 | 878 |
| Professional fees | 412 | 867 | 1437 | 2190 |
| Business development | 335 | 318 | 1018 | 983 |
| Intangible asset amortization | 76 | 86 | 230 | 259 |
| New market tax credit projects amortization | 192 | 174 | 575 | 523 |
| Other operating expenses, net | 348 | 268 | 1034 | 925 |
| **Total noninterest expense** | 10241 | 10505 | 30867 | 31439 |
| **Income before income taxes** | 5715 | 2614 | 15588 | 7903 |
| Provision for income taxes | 1156 | 397 | 3075 | 1198 |
| **Net income** | $4559 | $2217 | $12513 | $6705 |
| Basic and diluted earnings per share | $0.51 | $0.25 | $1.41 | $0.75 |
| Dividends declared per share | $0.20 | $0.20 | $0.40 | $0.74 |

---

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**AVERAGE BALANCES AND INTEREST RATES** *(unaudited)*

The following two tables are used to calculate the Company's non-GAAP net interest margin on a fully taxable equivalent (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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| AVERAGE BALANCE SHEETS AND INTEREST RATES |  |  |  |  |  |  |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ |
|  | balance | expense | rate | balance | expense | rate |
| ASSETS |  |  |  |  |  |  |
| *(dollars in thousands)* |  |  |  |  |  |  |
| Interest-earning assets |  |  |  |  |  |  |
| Loans (1) |  |  |  |  |  |  |
| Commercial | $95115 | $1533 | 6.45% | $89633 | $1425 | 6.36% |
| Agricultural | 125778 | 2218 | 7.05% | 122642 | 2356 | 7.68% |
| Real estate | 1054016 | 13430 | 5.10% | 1073945 | 12750 | 4.75% |
| Consumer and other | 16769 | 228 | 5.44% | 17064 | 220 | 5.16% |
| Total loans (including fees) | 1291678 | 17409 | 5.39% | 1303284 | 16751 | 5.14% |
| Investment securities |  |  |  |  |  |  |
| Taxable | 568730 | 3344 | 2.35% | 596141 | 2985 | 2.00% |
| Tax-exempt (2) | 75281 | 520 | 2.77% | 91221 | 609 | 2.67% |
| Total investment securities | 644011 | 3864 | 2.40% | 687362 | 3594 | 2.09% |
| Interest-bearing deposits with banks and federal funds sold | 65313 | 689 | 4.22% | 39456 | 495 | 5.02% |
| Total interest-earning assets | 2001002 | $21962 | 4.39% | 2030102 | $20840 | 4.11% |
| Noninterest-earning assets | 65634 |  |  | 72650 |  |  |
| TOTAL ASSETS | $2066636 |  |  | $2102752 |  |  |

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(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%.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** | **AVERAGE BALANCE SHEETS AND INTEREST RATES** |
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | Average | Revenue/ | Yield/ | Average | Revenue/ | Yield/ |
|  | balance | expense | rate | balance | expense | rate |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |
| *(dollars in thousands)* |  |  |  |  |  |  |
| Interest-bearing liabilities |  |  |  |  |  |  |
| Deposits |  |  |  |  |  |  |
| Interest-bearing checking, savings accounts and money markets | $1140317 | $4031 | 1.41% | $1146461 | $4982 | 1.74% |
| Time deposits | 336692 | 3142 | 3.73% | 312034 | 3296 | 4.23% |
| Total deposits | 1477009 | 7173 | 1.94% | 1458495 | 8278 | 2.27% |
| Other borrowed funds | 71223 | 631 | 3.54% | 120234 | 1357 | 4.51% |
| Total interest-bearing liabilities | 1548232 | 7804 | 2.02% | 1578729 | 9635 | 2.44% |
| Noninterest-bearing liabilities |  |  |  |  |  |  |
| Noninterest-bearing checking | 310424 |  |  | 337604 |  |  |
| Other liabilities | 12217 |  |  | 13244 |  |  |
| Stockholders' equity | 195763 |  |  | 173175 |  |  |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2066636 |  |  | $2102752 |  |  |
| Net interest income (FTE)(3) |  | $14158 |  |  | $11205 |  |
| Net interest spread (FTE) |  |  | 2.37% |  |  | 1.67% |
| Net interest margin (FTE)(3) |  |  | 2.83% |  |  | 2.21% |

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(3) Net interest income (FTE) is a non-GAAP financial measure.

**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 an 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)*.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2024** |
| Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP: |  |  |
| Net interest income (GAAP) | $14049 | $11077 |
| Tax-equivalent adjustment (1) | 109 | 128 |
| Net interest income on an FTE basis (non-GAAP) | 14158 | 11205 |
| Average interest-earning assets | $2001002 | $2030102 |
| Net interest margin on an FTE basis (non-GAAP) | 2.83% | 2.21% |

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(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.