Date: 7/26/2016

Title: Bank Performance Scorecard Released: Ames National Corporation Ranks in the Top 20 (7/26/16)

AMES NATIONAL CORPORATION RANKS AMONG THE TOP BANKS BETWEEN $1 BILLION AND $5 BILLION IN ASSETS

Ames, Iowa. Ames National Corporation ranked 17 among the top 166 publicly-traded banks with assets between $1 billion and $5 billion in Bank Director magazine’s annual Bank Performance Scorecard.

Bank Director, a leading resource for senior executives and directors of financial institutions, published the 2016 Bank Performance Scorecard, a ranking of publicly traded banks based on 2015 calendar year data, in its 3rd quarter issue. The annual ranking finds that the top performers were very successful in growing top line revenue last year, and have highly differentiated strategies that give these banks a competitive edge.

“Superior financial performance in the banking industry is often determined by having a strategy that differentiates one bank against its competitors in a meaningful way, and then doing a great job of executing that strategy,” says Bank Director Editor Jack Milligan.

Each year, the Bank Performance Scorecard ranks banks traded on the NASDAQ OMX and NYSE exchanges, dividing them into three categories: Big banks, with more than $50 billion in assets; mid-sized banks, between $5 billion and $50 billion in assets; and community banks, between $1 billion and $5 billion in assets.

The Scorecard uses five key metrics that measure profitability, capitalization and asset quality. ROAA and ROAE are used to gauge each bank’s profitability. The TCE ratio, a conservative metric that excludes less reliable instruments like preferred stock and debt, is used to measure each bank’s capital strength. And the ratio of nonperforming assets to total loans and other real estate owned, and the ratio of net charge offs to average loans, are used to assess each bank’s asset quality.

The banks received a numerical score in each of the five metrics from highest to lowest. These scores were then added across, and the bank with the lowest total score in each of the asset categories was the winner. For scoring purposes, ROAA, ROAE and the TCE ratio were given full weighting, while the two asset quality metrics were each given a half weighting. Banks that rank high on the Bank Performance Scorecard typically do well in all of the metrics rather than dominate just one or two. The Scorecard rewards banks that are well balanced across the full spectrum of profitability, capitalization and asset quality—but with a slight bias toward profitability.

Thomas Pohlman, President of Ames National Corporation, commented, “We are pleased to be ranked as one of the 2016 Bank Performance Scorecard’s top banks in our asset category. Our affiliate banks’ focus on delivering quality service and stability, which translates into a strong financial position for Ames National Corporation.” 

 

About Bank Director

Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its quarterly Bank Director magazine, executive-level research, annual conferences, and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America’s banking industry. Bank Director is headquartered in Brentwood, Tennessee.

About Ames National Corporation

Ames National Corporation is listed on the NASDAQ Capital Market under the ticker symbol, ATLO. The Corporation affiliate banks, all located in central Iowa, include: First National Bank, Ames, Boone Bank & Trust Co., Boone, State Bank & Trust Co., Nevada, Randall-Story State Bank, Story City, and United Bank & Trust, Marshalltown. Additional information about Ames National Corporation can be found at www.amesnational.com. Information regarding the process for purchasing stock can be obtained through Richard Nelson at First National Investment Services, (515) 663-3074.

For further information contact:
Thomas H. Pohlman, President and CEO
(515) 232-6251 or [email protected]