Ames National's Business Segments

Ames National Corporation is an Iowa corporation and bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company owns 100% of the stock of five banking subsidiaries consisting of two national banks and three state-chartered banks, as described below. All of the Company’s operations are conducted in the State of Iowa and primarily within the central and north central Iowa counties of Boone, Hancock, Marshall, Polk and Story where the Company’s banking subsidiaries are located. The Company does not engage in any material business activities apart from its ownership of its banking subsidiaries and the management of its own investment and loan portfolios. The principal executive offices of the Company are located at 405 5th Street, Ames, Iowa 50010. The Company’s telephone number is (515) 232-6251 and website address is www.amesnational.com.

Ames National Corporation operates through a network of community banks, primarily First National Bank, Boone Bank, State Bank, and United Bank, and offers a diverse array of segments, products, and services catering to both individual and commercial clients. Below is an extensive overview of the segments, products, and services offered by Ames National Corporation.

1. Commercial Loans
Commercial loans are a significant focus within Ames National Corporation’s portfolio, constituting approximately 50% of the loan offerings. These loans are designed to assist various business entities, including sole proprietors, partnerships, corporations, and municipalities, primarily for business purposes. Typically, these loans are secured by the borrowers assets and often require personal guarantees from the business owners.

Types of Commercial Loans:
- Small Business Administration (SBA) Loans: Financing guaranteed under SBA programs, which aim to support startups and small businesses with favorable lending terms.
- Operating and Working Capital Loans: Short-term loans intended to cover everyday operational expenses, helping businesses manage cash flow effectively.
- Equipment Financing: Loans specifically tailored for the purchase of machinery and equipment necessary for business operations.
- Commercial Real Estate Loans: Financing for properties used for business purposes, including the acquisition of office buildings, retail spaces, and industrial facilities.
- Business Lines of Credit: Flexible financing options that allow businesses to draw funds as needed, up to a specified credit limit.
- Term Loans: Fixed or variable-rate loans with a set repayment schedule used for various long-term business needs.
- Professional Loans: Tailored financial products designed to meet the needs of professionals, such as doctors, lawyers, and accountants, enabling them to finance their practice-related expenses.
- Letters of Credit: Financial guarantees issued by the bank on behalf of the borrower, providing assurance to suppliers and clients during transactions.

Agricultural Loans
Reflecting the corporations commitment to the agrarian community in Iowa, approximately 20% of the loan portfolio is dedicated to agricultural lending. This includes financing for seasonal operations and long-term investments in agriculture.

Types of Agricultural Loans:
- Short-Term Loans: Designed to cover immediate financing needs associated with seasonal crop and livestock production.
- Intermediate-Term Loans: Financing targeted towards the acquisition of machinery, equipment, and breeding stock, helping farmers modernize and sustain their operations.
- Long-Term Real Estate Loans: Financing options geared towards purchasing or expanding agricultural land, allowing for long-term investment in farming operations.
- Collateral-Based Financing: These loans are typically secured by crops, livestock, machinery, or agricultural real estate, ensuring that the financing aligns with the risks inherently involved in agricultural production.

Consumer Loans
Consumer loans at Ames National Corporation are tailored to assist individual consumers with personal financial needs. These loans can be secured or unsecured based on the borrowers preference and collateral availability.

Types of Consumer Loans:
- Automobile and Truck Financing: Loans for the purchase or refinance of personal vehicles, including cars and trucks.
- Recreational Vehicle Financing: Loans available for purchasing boats and recreational vehicles, catering to leisure and travel needs.
- Personal Loans and Lines of Credit: Flexible loans that provide consumers with cash at their disposal for various personal expenses, available on an unsecured basis or secured by assets.
- Home Equity Lines of Credit (HELOC): Loans that leverage the equity of a consumers home, providing funds for various financial needs, from home improvements to debt consolidation.
- Home Improvement and Rehabilitation Loans: Financing options specifically designated for renovations, upgrades, or repairs to residential properties.
- Consumer Real Estate Loans: Loans available for purchasing or refinancing residential properties.

Additional Credit Programs
Beyond traditional commercial, agricultural, and consumer loans, Ames National Corporation also provides specialized lending to:
- Nonprofit Organizations: Tailored financing solutions designed to support the operations and growth of nonprofit entities.
- Public Entities: Loans focused on funding initiatives for municipalities and government-related projects.
- Community Development Initiatives: Financing aimed at enhancing community infrastructure and economic development projects.

Wealth Management Services
Ames National Corporation, through its network of banks, offers a comprehensive suite of wealth management services typically associated with full-service commercial banks. These services include:
- Trust Administration: Managing estates, conservatorships, personal trusts, and corporate trusts to ensure the effective handling of clients’ assets.
- Agency Accounts: Custodial services that manage assets on behalf of clients, ensuring proper handling and reporting.
- Farm Management: Specialized services for agricultural entities that focus on optimizing farm operations and land management practices.
- Investment Services: Providing individuals, businesses, and nonprofits with investment management and custodial services to help grow their financial assets.

Residential Mortgage Origination
The corporation participates in the residential mortgage market by originating mortgages that are subsequently sold in the secondary market. This process allows the banks to assist borrowers in purchasing homes while freeing up capital for additional lending.

Traditional Banking Services
In addition to lending and wealth management, Ames National Corporation provides standard banking services that enhance customer convenience, including:
- Safe Deposit Boxes: Offering secure storage for valuables and important documents.
- Wire Transfers: Facilitating quick and secure transfer of funds both domestically and internationally.
- Direct Deposit Services: Enabling clients to receive payroll and social security checks directly into their accounts.
- Automated Teller Machines (ATM) and Video Teller Services: Providing access to banking services 24/7 through various channels.
- Automated Clearing House (ACH) Services: Enabling automatic drafts and electronic payments for various accounts.

In summary, Ames National Corporation offers a robust range of financial products and services designed to meet the diverse needs of its customer base, from commercial and agricultural lending to consumer financing and wealth management solutions. Their comprehensive approach positions them as a vital financial partner within their communities, backed by a firm commitment to customer service and financial stability.