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.
he 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 ("First National") located
in Ames, Iowa. In 1983, the Company acquired the stock of the State Bank &
Trust Co. ("State Bank") located in Nevada, Iowa; in 1991, the Company,
through a newly-chartered state bank known as Boone Bank & Trust Co. ("Boone
Bank"), 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, (”Reliance
Bank”) located in Story City, Iowa; and in 2002, the Company chartered
and commenced operations of a new national banking organization, United Bank
& Trust NA (“United Bank”), located in Marshalltown, Iowa. First
National, State Bank, Boone Bank, Reliance Bank and United Bank are each operated
as a wholly owned subsidiary of the Company.
The principal sources of Company revenue are: (i) interest and fees earned
on loans made or held by the Company and Banks; (ii) interest on fixed income
investments held by the Company and the Banks; (iii) fees on wealth management
services; (iv) service charges on deposit accounts maintained at the Banks;
(v) merchant and card fees; (vi) gain on the sale of loans; and (vii) securities
gains. The Company’s principal expenses are: (i) interest expense on deposit
accounts and other borrowings; (ii) salaries and employee benefits; (iii) data
processing costs primarily associated with maintaining the Banks’ loan
and deposit functions; (iv) occupancy expenses for maintaining the Banks’
facilities; (v) professional fees; (vi) business development; (vii) Federal
Deposit Insurance Corporation (the “FDIC”) insurance assessments;
and (viii) other real estate owned expenses. The largest component contributing
to the Company’s net income is net interest income, which is the difference
between interest earned on earning assets (primarily loans and investments)
and interest paid on interest bearing liabilities (primarily deposit accounts
and other borrowings). One of management’s principal functions is to manage
the spread between interest earned on earning assets and interest paid on interest
bearing liabilities in an effort to maximize net interest income while maintaining
an appropriate level of interest rate risk.
The Banks’ lending activities consist primarily of short-term and medium-term
commercial and agricultural real estate loans, residential real estate loans,
agricultural and business operating loans and lines of credit, equipment loans,
vehicle loans, personal loans and lines of credit, home improvement loans and
origination of mortgage loans for sale into the secondary market. The Banks
also offer a variety of demand, savings and time deposits, cash management services,
merchant credit card processing, safe deposit boxes, wire transfers, direct
deposit of payroll and social security checks and automated/video teller machine
access. Four of the five Banks also offer trust services.
The Company provides various services to the Banks which include, but are not
limited to, management assistance, internal auditing services, human resources
services and administration, compliance management, marketing assistance and
coordination, loan review and support with respect to computer systems and related
procedures.
As a multi-bank holding company for five community banks, the Company emphasizes
strong personal relationships to provide products and services that meet the
needs of the Banks’ customers. The Company seeks to achieve growth and
maintain a strong return on equity. To accomplish these goals, the Banks focus
on small-to-medium size businesses that traditionally wish to develop an exclusive
relationship with a single bank. The Banks, individually and collectively, have
the size to give the personal attention required by business owners, in addition
to the credit expertise to help businesses meet their goals.
The Banks offer a full range of deposit services that are typically available
in most financial institutions, including checking accounts, savings accounts
and time deposits of various types, ranging from money market accounts to longer-term
certificates of deposit. One major goal in developing the Banks product mix
is to keep the product offerings as simple as possible, both in terms of the
number of products and the features and benefits of the individual services.
The transaction accounts and time certificates are tailored to each Banks principal
market area at rates competitive in that Bank’s market. In addition, retirement
accounts such as IRAs (Individual Retirement Accounts) are available. The FDIC
insures all deposit accounts up to the maximum amount. The Banks solicit these
accounts from small-to-medium sized businesses in their respective primary trade
areas, and from individuals who live and/or work within these areas. No material
portion of the Banks deposits has been obtained from a single person or from
a few persons. Therefore, the Company does not believe that the loss of the
deposits of any person or of a few persons would have an adverse effect on the
Banks operations or erode their deposit base.
Loans are provided to creditworthy borrowers regardless of their race, color,
national origin, religion, sex, age, marital status, disability, receipt of
public assistance or any other basis prohibited by law. The Banks intend to
fulfill this commitment while maintaining prudent credit standards. In the course
of fulfilling this obligation to meet the credit needs of the communities which
they serve, the Banks give consideration to each credit application regardless
of the fact that the applicant may reside in a low to moderate income neighborhood,
and without regard to the geographic location of the residence, property or
business within their market areas.
The Banks provide innovative, quality financial products, such as Internet banking
and trust services that meet the banking needs of their customers and communities.
The loan programs and acceptance of certain loans may vary from time-to-time
depending on the funds available and regulations governing the banking industry.