Date: 5/22/2023

Title: ATLO Expected to be Added to the Russell 2000® and 3000® Indexes

AMES, IOWA – May 22, 2023 – Ames National Corporation (Nasdaq: ATLO) announced today that it has been added to the preliminary list of the Russell 3000® Index and the Small-Cap Russell 2000® Index as part of the 35th Russell indexes annual reconstitution.

The annual reconstitution will take effect after the market closes on June 23, 2023, and will become effective June 26, 2023, at the open of the equity markets. The rebalancing process is designed to capture market shifts from the previous year to ensure the Russell U.S. Indexes continue to accurately reflect the U.S. equity market.

Annual reconstitution of Russell’s U.S. indexes captures the 4,000 largest U.S. stocks as of April 28, 2023, ranking them by total market capitalization. Membership in the U.S. all-cap Russell 3000 index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000 or small -cap Russell 2000 index, as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.

What are the Russell Indexes?
The Russell US Indexes are a family of global stock market indices from FTSE Russell that allows investors to track performance of distinct market segments worldwide. Many investors use mutual funds or exchange-traded funds based on the FTSE Russell indexes as a way of gaining exposure to certain portions of the U.S. stock market. Additionally, many investment managers use the Russell Indexes as benchmarks to measure their own performance. Russell index design has led to more assets benchmarked to the U.S. index family than all other U.S. equity indexes combined.

Significance of the Russell 3000 and 2000 Indexes
The Russell 3000 index reflects the movement of nearly 98% of all publicly traded U.S. stocks.

The Russell 2000 index is the most widely quoted measure of the overall performance of the small-cap to mid-cap stocks. It represents approximately 7% of the total Russell 3000 market capitalization. The average value for a company on the Russell 2000 was $2.9 billion in Q1 2023.

Mutual fund investors favor the Russell 2000 Index because it reflects the investment opportunity presented by the entire market, rather than opportunities offered by narrower indices, which may contain bias or more stock-specific risk. Many mutual funds and exchange-traded funds are tied to or based on the Russell 2000.

Why the Russell Reconstitution Matters to Investors
Russell indexes are important benchmarks for exchange-traded funds and other investment products. Funds with about $10.6 trillion in assets under management track the company’s indexes.

In 2022, Russell reconstitution day was the highest-volume trading day of the entire year. The reconstitution generated $143 million in trading volume in the closing minutes of trading on June 27, 2022.

Funds and institutional investors that track the Russell indexes are forced to buy stocks being added to the indexes and sell stocks being removed. This readjustment takes place moments before the market closes on the last day of trading before the reconstitution closes.

Can Individuals Invest in the Russell 2000 Index?
Individual investors can invest in the Russell 2000 via index Stock Exchange-Traded Funds (ETFs) that track it. Contact your investment advisor or First Point Wealth Management at (515) 715-1942.

Ames National Corporation does not provide investment, tax, accounting, or legal advice. Always speak to your investment advisor before investing in any stock. Decisions to buy, sell, or hold any investment rest solely with you, an authorized person, and any Advisor to you, if applicable.

About Ames National Corporation

Ames National Corporation is listed on the NASDAQ Capital Market under the ticker symbol, ATLO. The Company's affiliate banks include: First National Bank, Ames, Iowa; Boone Bank & Trust Co., Boone, Iowa; State Bank & Trust Co., Nevada, Iowa; Iowa State Savings Bank, Creston, Iowa; Reliance State Bank, Story City, Iowa; and United Bank & Trust Co., Marshalltown, Iowa. Additional information about the Company can be found at: amesnational.com.

For further information contact:

John P. Nelson, President and CEO
(515) 232-6251 or [email protected]