Ames National: Spreads Are Widening Again

Bashar Issa7.11K FollowersFollow5ShareSaveCommentsSummaryAmes National has surged 21% YTD, benefiting from widening interest rate spreads and robust net income growth.ATLO's Q4'25 net income rose 85% to $6.5 million, with ROA doubling and net interest margins improving to 3%.Deposit costs declined despite growth in deposits, while loan yields—especially real estate—rose, driving spread expansion.ATLO cut its dividend in 2024 for flexibility; a future increase is possible, but management may prioritize stability.

Images By Tang Ming Tung/DigitalVision via Getty Images Investment Thesis Regional banks have benefited from a widening in interest rate spreads after two years of pressure. Ames National (ATLO), a small, Iowa-based community banking holding company, saw its shares upThis article was written byBashar Issa7.11K FollowersFollowBashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.