AMES NATIONAL CORP

Previous wording

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. Wealth management services includes financial planning and managing trust, agencies, estates and investment brokerage accounts. The Company employs twenty-three individuals to assist the Banks with its financial reporting, human resources, audit, compliance, marketing, technology systems, training, real estate valuation services and the coordination of management activities, in addition to 240 full-time equivalent individuals employed by the Banks.

Current wording

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. Wealth management services includes financial planning and managing trust, agencies, estates and investment brokerage accounts. The Company employs twenty-six individuals to assist the Banks with its financial reporting, human resources, audit, compliance, marketing, technology systems, training, real estate valuation services and the coordination of management activities, in addition to 232 full-time equivalent individuals employed by the Banks.

Previous wording

The Company had net income of $2.2 million, or $0.25 per share, for the three months ended September 30, 2024, compared to net income of $2.9 million, or $0.33 per share, for the three months ended September 30, 2023. The decrease in earnings is primarily due to an increase in credit loss expense and consultant fees related to negotiating long-term vendor contracts. The increase in credit loss expense is primarily due to loan growth and a specific reserve placed on a commercial loan relationship. The consultant fees were paid as a percentage of the negotiated benefit to the Company. The consultant fees are recognized into expense during the contract negotiations while the benefits will be recognized throughout the related contractual agreements.

Current wording

The Company had net income of $3.4 million, or $0.39 per share, for the three months ended March 31, 2025, compared to net income of $2.3 million, or $0.26 per share, for the three months ended March 31, 2024. The increase in earnings is primarily due to an increase in net interest income and partially offset by an increase in credit loss expense. The increase in net interest income is primarily due to an increase in the volume and yield of loans and a decrease in interest expense on other borrowed funds as the Company has reduced borrowings. The increase in credit loss expense is primarily due to a specific reserve placed on a commercial loan relationship.

Previous wording

Net loan charge-offs for the three months ended September 30, 2024 totaled $10 thousand compared to net loan recoveries of $4 thousand for the three months ended September 30, 2023. A credit loss expense of $371 thousand was recognized for the three months ended September 30, 2024 as compared to a credit loss benefit of $274 thousand for the three months ended September 30, 2023.

Current wording

Net loan charge-offs for the three months ended March 31, 2025 totaled $48 thousand compared to net loan recoveries of $4 thousand for the three months ended March 31, 2024. A credit loss expense of $962 thousand was recognized for the three months ended March 31, 2025 as compared to $169 thousand for the three months ended March 31, 2024.

Previous wording

For the three months ended September 30, 2024 and 2023, the Company's net interest margin adjusted for tax exempt income was 2.21% and 2.11%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended September 30, 2024 totaled $11.1 million compared to $10.7 million for the three months ended September 30, 2023.

Current wording

For the three months ended March 31, 2025 and 2024, the Company's net interest margin adjusted for tax exempt income was 2.53% and 2.13%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended March 31, 2025 totaled $12.9 million compared to $10.9 million for the three months ended March 31, 2024.

Previous wording

For the three months ended September 30, 2024, interest income increased $2.0 million, or 10.4%, when compared to the same period in 2023. The increase is primarily due to higher average rates and growth in the loan portfolio.

Current wording

For the three months ended March 31, 2025, interest income increased $1.0 million, or 5.0%, when compared to the same period in 2024. The increase is primarily due to higher interest rates, growth in the loan portfolio and an increase in interest-bearing deposits and federal funds sold.

Previous wording

Interest expense increased $1.6 million, or 19.3%, for the three months ended September 30, 2024 when compared to the same period in 2023. The higher interest expense for the period is primarily due to customers shifting to higher rate deposit products.

Current wording

Interest expense decreased $1.0 million, or 10.9%, for the three months ended March 31, 2025 when compared to the same period in 2024. The lower interest expense for the period is primarily due to reduced borrowings and a decrease in market rates.

Previous wording

A credit loss expense of $371 thousand was recognized for the three months ended September 30, 2024 as compared to a credit loss benefit of $274 thousand for the three months ended September 30, 2023. Net loan charge-offs for the three months ended September 30, 2024 totaled $10 thousand compared to net loan recoveries of $4 thousand for the three months ended September 30, 2023. The credit loss expense in 2024 was primarily due to an increase in specific reserves in the commercial loan portfolio.

Current wording

A credit loss expense of $962 thousand was recognized for the three months ended March 31, 2025 as compared to $169 thousand for the three months ended March 31, 2024. Net loan charge-offs for the three months ended March 31, 2025 totaled $48 thousand compared to net loan recoveries of $4 thousand for the three months ended March 31, 2024. The credit loss expense in 2025 was primarily due to an increase in specific reserves in the commercial loan portfolio. The credit loss expense in 2024 was primarily due to an increase in the risks associated with the softening of commercial real estate collateral values.

Previous wording

Noninterest income for the nine months ended September 30, 2024 totaled $7.2 million compared to $6.9 million for the nine months ended September 30, 2023, an increase of 4.0%. The increase is primarily due to an increase in wealth management income and partially offset by losses on the sale of securities in 2024.

Current wording

Noninterest income for the three months ended March 31, 2025 totaled $2.55 million compared to $2.18 million for the three months ended March 31, 2024, an increase of 17.0%. The increase is primarily due to a decrease in losses on the sale of securities and an increase in wealth management income due to growth in assets under management and new account relationships.

Previous wording

Income tax expense for the three months ended September 30, 2024 totaled $397 thousand compared to $597 thousand recorded for the three months ended September 30, 2023. The effective tax rate was 15% and 17% for the three months ended September 30, 2024 and 2023. The lower than expected tax rate in 2024 and 2023 was due primarily to tax-exempt interest income and New Markets Tax Credits.

Current wording

Income tax expense for the three months ended March 31, 2025 totaled $794 thousand compared to $416 thousand recorded for the three months ended March 31, 2024. The effective tax rate was 19% and 15% for the three months ended March 31, 2025 and 2024. The lower than expected tax rate in 2025 and 2024 was due primarily to tax-exempt interest income and New Markets Tax Credits.

Previous wording

As of September 30, 2024, total assets were $2.1 billion, a $32.3 million decrease compared to December 31, 2023. This decrease in assets is primarily due to a decrease in securities available-for-sale and partially offset by an increase in loans.

Current wording

As of March 31, 2025, total assets were $2.2 billion, a $51.1 million increase compared to December 31, 2024. This increase in assets is primarily due to an increase in cash and cash equivalents, partially offset by a decrease in securities available-for-sale.

Previous wording

The investment portfolio totaled $688.6 million as of September 30, 2024, a decrease of $47.8 million from the December 31, 2023 balance of $736.4 million. The decrease in securities available-for-sale is primarily due to maturities in excess of purchases and partially offset by a decrease in unrealized losses.

Current wording

The investment portfolio totaled $640.4 million as of March 31, 2025, a decrease of $8.1 million from the December 31, 2024 balance of $648.5 million. The decrease in securities available-for-sale is primarily due to maturities in excess of purchases, offset in part by a decrease in unrealized losses.

Previous wording

On a quarterly basis, the investment portfolio is reviewed for credit losses. As of September 30, 2024, gross unrealized losses of $39.8 million, are due to the interest rate environment and are not considered credit-related. Certain bonds in the investment portfolio may incur credit losses and could negatively affect the Company’s net income. As a result of the Company’s favorable liquidity position, the Company does not have the intent to sell securities with an unrealized loss at the present time. In addition, management believes it is more likely than not that the Company will hold these securities until recovery of their fair value to cost basis and expects full principal and interest to be collected. Therefore, the Company does not have an allowance for credit losses on these investments as of September 30, 2024.

Current wording

On a quarterly basis, the investment portfolio is reviewed for credit losses. As of March 31, 2025, gross unrealized losses of $42.7 million, are due to the interest rate environment and are not considered credit-related. Certain bonds in the investment portfolio may incur credit losses and could negatively affect the Company’s net income. As a result of the Company’s favorable liquidity position, the Company does not have the intent to sell securities with an unrealized loss at the present time. In addition, management believes it is more likely than not that the Company will hold these securities until recovery of their fair value to cost basis and expects full principal and interest to be collected. Therefore, the Company does not have an allowance for credit losses on these investments as of March 31, 2025.

Previous wording

At September 30, 2024, the Company’s investment securities portfolio included securities issued by 261 government municipalities and agencies located within 30 states with a fair value of $256.4 million. At December 31, 2023, the Company’s investment securities portfolio included securities issued by 272 government municipalities and agencies located within 30 states with a fair value of $269.9 million. No one municipality or agency represents a concentration within this segment of the investment portfolio. Omaha, Nebraska, sewer revenue bonds with a fair value of $5.4 million (approximately 2.1% of the fair value of the government municipalities and agencies) represent the largest exposure to any one municipality or agency for the Company as of September 30, 2024.

Current wording

At March 31, 2025, the Company’s investment securities portfolio included securities issued by 258 government municipalities and agencies located within 30 states with a fair value of $245.6 million. At December 31, 2024, the Company’s investment securities portfolio included securities issued by 258 government municipalities and agencies located within 30 states with a fair value of $245.6 million. No one municipality or agency represents a concentration within this segment of the investment portfolio. Omaha, Nebraska, sewer revenue bonds with a fair value of $5.4 million (approximately 2.2% of the fair value of the government municipalities and agencies) represent the largest exposure to any one municipality or agency for the Company as of March 31, 2025.

Previous wording

The loan portfolio, net of the allowance for credit losses, totaled $1.296 billion and $1.278 billion as of September 30, 2024 and December 31, 2023, respectively. The increase was primarily due to an increase in the 1 to 4 family residential real estate, multi-family real estate and agricultural operating loan portfolios.

Current wording

The loan portfolio, net of the allowance for credit losses, totaled $1.306 billion and $1.304 billion as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

Deposits totaled $1.80 billion and $1.81 billion as of September 30, 2024 and December 31, 2023, respectively. The decrease is primarily due to lower balances in retail and commercial noninterest-bearing checking, savings and money market accounts as customers seek higher interest rates. A portion of the decrease in retail and commercial noninterest-bearing checking, savings and money market accounts was offset by an increase in time deposits and public funds. Securities sold under agreements to repurchase decreased to $42.8 million as of September 30, 2024 compared to $54.0 million as of December 31, 2023. Securities sold under agreements to repurchase and deposit balances fluctuate as customers’ liquidity needs vary and could be impacted by prevailing market interest rates, competition, and economic conditions. Approximately 15% of deposits are tied to external indexes as of September 30, 2024. Deposit interest expense related to these deposits can be more volatile than other deposit products in a changing interest rate environment.

Current wording

Deposits totaled $1.91 billion and $1.85 billion as of March 31, 2025 and December 31, 2024, respectively. The increase is primarily due to an increase in public funds and partially offset by a decrease in noninterest-bearing checking accounts. Securities sold under agreements to repurchase decreased to $45.8 million as of March 31, 2025 compared to $52.4 million as of December 31, 2024. Securities sold under agreements to repurchase and deposit balances fluctuate as customers’ liquidity needs vary and could be impacted by prevailing market interest rates, competition, and economic conditions. Approximately 16% of deposits are tied to external indexes as of March 31, 2025. Deposit interest expense related to these deposits can be more volatile than other deposit products in a changing interest rate environment.

Previous wording

The Company’s credit risk is historically centered in the loan portfolio, which totaled $1.296 billion and $1.278 billion as of September 30, 2024 and December 31, 2023, respectively. Net loans comprise 61% of total assets as of September 30, 2024. The objective in managing loan portfolio risk is to reduce the risk of loss resulting from a customer’s failure to perform according to the terms of an agreement and to quantify and manage credit risk on a portfolio basis. The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.33% at September 30, 2024, as compared to 1.08% at December 31, 2023. The Company’s level of problem loans as a percentage of total loans at September 30, 2024 of 1.33% is higher as compared to the Iowa State Average peer group of FDIC insured institutions as of June 30, 2024, of 0.49%, most recent available.

Current wording

The Company’s credit risk is historically centered in the loan portfolio, which totaled $1.306 billion and $1.304 billion as of March 31, 2025 and December 31, 2024, respectively. Net loans comprise 60% of total assets as of March 31, 2025. The objective in managing loan portfolio risk is to reduce the risk of loss resulting from a customer’s failure to perform according to the terms of an agreement and to quantify and manage credit risk on a portfolio basis. The Company’s level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.25% at March 31, 2025, as compared to 1.17% at December 31, 2024. The Company’s level of problem loans as a percentage of total loans at March 31, 2025 of 1.25% is higher as compared to the Iowa State Average peer group of FDIC insured institutions as of December 31, 2024, of 0.47%, most recent available.

Previous wording

Substandard-Impaired loans totaled $16.9 million as of September 30, 2024 and have increased $3.7 million as compared to the substandard-impaired loans of $13.2 million as of December 31, 2023. The increase is primarily due to downgrades in the commercial real estate and commercial operating loan portfolios.

Current wording

Substandard-Impaired loans totaled $15.7 million as of March 31, 2025 and have increased $1.5 million as compared to the substandard-impaired loans of $14.2 million as of December 31, 2024. The increase is primarily due to downgrades in the commercial real estate and commercial operating loan portfolios.

Previous wording

Loans past due 90 days or more that are still accruing interest are reviewed no less frequently than quarterly to determine if there continues to be a strong reason that the credit should not be placed on nonaccrual. As of September 30, 2024, nonaccrual loans totaled $17.5 million and there were no loans past due 90 days and still accruing. This compares to nonaccrual loans of $13.8 million and $109 thousand of loans past due 90 days and still accruing as of December 31, 2023. There was no other real estate owned as of September 30, 2024 and December 31, 2023.

Current wording

Loans past due 90 days or more that are still accruing interest are reviewed no less frequently than quarterly to determine if there continues to be a strong reason that the credit should not be placed on nonaccrual. As of March 31, 2025, nonaccrual loans totaled $16.3 million and $246 thousand of loans past due 90 days and still accruing. This compares to nonaccrual loans of $14.8 million and $736 thousand of loans past due 90 days and still accruing as of December 31, 2024. There was no other real estate owned as of March 31, 2025 and December 31, 2024.

Previous wording

Loans past due 30 days or more totaled $9.8 million as of September 30, 2024, compared to $4.3 million as of December 31, 2023. The increase is primarily related to the commercial real estate portfolio.

Current wording

Loans past due 30 days or more totaled $11.8 million as of March 31, 2025, compared to $6.9 million as of December 31, 2024. The increase is primarily related to the agriculture operating and 1-4 family real estate loan portfolios. A 1-4 family loan relationship of $2.5 million was past due 30 days as it was going through renewal.

Previous wording

The watch and special mention loans classified as agricultural real estate and operating totaled $27.5 million as of September 30, 2024 as compared to $19.9 million as of December 31, 2023. The increase is primarily due to agricultural operating loans that were moved to watch as the customers refinance and restructure assets. The substandard and substandard-impaired loans in these categories totaled $6.1 million and $6.2 million as of September 30, 2024 and December 31, 2023, respectively.

Current wording

The watch and special mention loans classified as agricultural real estate and operating totaled $35.4 million as of March 31, 2025 as compared to $30.9 million as of December 31, 2024. The substandard and substandard-impaired loans in these categories totaled $6.7 million and $5.2 million as of March 31, 2025 and December 31, 2024, respectively. The increase is primarily due to variable yields, weather impacts and commodity prices affecting agricultural loans.

Previous wording

The watch and special mention loans classified as commercial real estate totaled $41.0 million as of September 30, 2024 as compared to $73.3 million as of December 31, 2023. The substandard and substandard-impaired commercial real estate loans totaled $29.3 million and $15.4 million as of September 30, 2024 and December 31, 2023, respectively. The changes between periods are primarily due to weaking in the commercial real estate loan portfolio as some commercial real estate loans are experiencing a decline in occupancy rate and collateral valuation.

Current wording

The watch and special mention loans classified as commercial real estate totaled $40.8 million as of March 31, 2025 as compared to $40.3 million as of December 31, 2024. The substandard and substandard-impaired commercial real estate loans totaled $35.2 million and $35.6 million as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

The allowance for credit losses as a percentage of outstanding loans as of September 30, 2024 was 1.34%, as compared to 1.30% at December 31, 2023. The allowance for credit losses totaled $17.6 million and $16.8 million as of September 30, 2024 and December 31, 2023, respectively. The increase in the allowance for credit losses is mainly due to loan growth and an increase in specific reserves.

Current wording

The allowance for credit losses as a percentage of outstanding loans as of March 31, 2025 was 1.36%, as compared to 1.29% at December 31, 2024. The allowance for credit losses totaled $18.0 million and $17.1 million as of March 31, 2025 and December 31, 2024, respectively. The increase in the allowance for credit losses is mainly due to a specific reserve placed on a commercial loan relationship.

Previous wording

Liquidity is derived primarily from core deposit growth and retention; principal and interest payments on loans; principal and interest payments, sale, maturity and prepayment of securities available-for-sale; net cash provided from operations; and access to other funding sources. Other funding sources include federal funds purchased lines, Federal Reserve BTFP, FHLB advances and other capital market sources.

Current wording

Liquidity is derived primarily from core deposit growth and retention; principal and interest payments on loans; principal and interest payments, sale, maturity and prepayment of securities available-for-sale; net cash provided from operations; and access to other funding sources. Other funding sources include federal funds purchased lines, FHLB advances and other capital market sources.

Previous wording

Liquid assets of cash on hand, balances due from other banks and interest-bearing deposits in financial institutions as of September 30, 2024 and December 31, 2023 totaled $59.0 million and $55.1 million, respectively, and management believes these sources provide an adequate level of liquidity given current economic conditions.

Current wording

Liquid assets of cash on hand, balances due from other banks and interest-bearing deposits in financial institutions as of March 31, 2025 and December 31, 2024 totaled $163.4 million and $101.2 million, respectively, and management believes these sources provide an adequate level of liquidity given current economic conditions.

Previous wording

Other sources of liquidity available to the Banks as of September 30, 2024 include outstanding lines of credit with the FHLB of Des Moines, Iowa of $201.0 million, with $72.5 million of outstanding FHLB advances. Federal funds borrowing capacity at correspondent banks was $97.5 million, with no outstanding federal fund purchase balances as of September 30, 2024. The Company had securities sold under agreements to repurchase totaling $42.8 million as of September 30, 2024.

Current wording

Other sources of liquidity available to the Banks as of March 31, 2025 include outstanding lines of credit with the FHLB of Des Moines, Iowa of $242.5 million, with $32.5 million of outstanding FHLB advances. Federal funds borrowing capacity at correspondent banks was $97.1 million, with no outstanding federal fund purchase balances as of March 31, 2025. The Company had securities sold under agreements to repurchase totaling $45.8 million as of March 31, 2025.

Previous wording

Total investments as of September 30, 2024 were $688.6 million compared to $736.4 million as of December 31, 2023. These investments provide the Company with liquidity since all of the investments are classified as available-for-sale as of September 30, 2024. The Company has $398.9 million of unpledged securities available-for-sale and interest-bearing deposits as of September 30, 2024. The investment portfolio serves an important role in the overall context of balance sheet management in terms of balancing capital utilization and liquidity. The decision to purchase or sell securities is based upon the current assessment of economic and financial conditions, including the interest rate environment, liquidity and credit considerations. The portfolio’s scheduled maturities and payments represent a significant source of liquidity.

Current wording

Total investments as of March 31, 2025 were $640.4 million compared to $648.5 million as of December 31, 2024. These investments provide the Company with liquidity since all of the investments are classified as available-for-sale as of March 31, 2025. The Company has $348.5 million of unpledged securities available-for-sale and interest-bearing deposits as of March 31, 2025. The investment portfolio serves an important role in the overall context of balance sheet management in terms of balancing capital utilization and liquidity. The decision to purchase or sell securities is based upon the current assessment of economic and financial conditions, including the interest rate environment, liquidity and credit considerations. The portfolio’s scheduled maturities and payments represent a significant source of liquidity.

Previous wording

Net cash provided by operating activities for the nine months ended September 30, 2024 totaled $8.4 million compared to $12.8 million for the nine months ended September 30, 2023. The decrease of $4.4 million in cash provided by operating activities was primarily due to payments of accrued interest on borrowings and lower net income.

Current wording

Net cash provided by operating activities for the three months ended March 31, 2025 totaled $7.1 million compared to $1.4 million for the three months ended March 31, 2024. The increase of $5.7 million in cash provided by operating activities was primarily due to payments of accrued interest on borrowings in 2024 and higher net income in 2025.

Previous wording

Net cash provided by investing activities for the nine months ended September 30, 2024 was $51.6 million compared to $38.8 million for the nine months ended September 30, 2023. The increase of $12.8 million in cash provided by investing activities was primarily due to maturities of securities available-for-sale.

Current wording

Net cash provided by investing activities for the three months ended March 31, 2025 was $15.5 million compared to $18.3 million for the three months ended March 31, 2024. The decrease of $2.8 million in cash provided by investing activities was primarily due to an increase in loans and purchases of securities available-for-sale, partially offset by maturities of securities available-for-sale.

Previous wording

Net cash provided by (used in) financing activities for the nine months ended September 30, 2024 totaled ($56.1) million compared to $10.5 million for the nine months ended September 30, 2023. The decrease in cash provided by financing activities of $66.6 million was primarily due to payments on other borrowings, fewer proceeds from other borrowings between periods and a decrease in securities sold under agreements to repurchase. The decrease in cash provided by financing activities was partially offset by a lower decrease in deposits. As of September 30, 2024, the Company did not have any external debt financing, off-balance sheet financing arrangements, or derivative instruments linked to its stock.

Current wording

Net cash provided by financing activities for the three months ended March 31, 2025 totaled $39.6 million compared to $36.6 million for the three months ended March 31, 2024. The increase of $3.0 million in cash provided by financing activities was primarily due to a decrease in net payments on other borrowings between periods. As of March 31, 2025, the Company did not have any external debt financing, off-balance sheet financing arrangements, or derivative instruments linked to its stock.

Previous wording

The Company’s liquidity on an unconsolidated basis is heavily dependent upon dividends paid to the Company by the Banks. The Banks provide adequate liquidity to pay the Company’s expenses and stockholder dividends. Dividends paid by the Banks to the Company amounted to $7.9 million and $7.2 million for the nine months ended September 30, 2024 and 2023, respectively. Various federal and state statutory provisions limit the amounts of dividends banking subsidiaries are permitted to pay to their holding companies without regulatory approval. Federal Reserve policy further limits the circumstances under which bank holding companies may declare dividends. For example, a bank holding company should not continue its existing rate of cash dividends on its common stock unless its net income is sufficient to fully fund each dividend and its prospective rate of earnings retention appears consistent with its capital needs, asset quality and overall financial condition. In addition, the Federal Reserve and the FDIC have issued policy statements, which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings. Federal and state banking regulators may also restrict the payment of dividends by order.

Current wording

The Company’s liquidity on an unconsolidated basis is heavily dependent upon dividends paid to the Company by the Banks. The Banks provide adequate liquidity to pay the Company’s expenses and stockholder dividends. Dividends paid by the Banks to the Company amounted to $3.2 million and $2.6 million for the three months ended March 31, 2025 and 2024, respectively. Various federal and state statutory provisions limit the amounts of dividends banking subsidiaries are permitted to pay to their holding companies without regulatory approval. Federal Reserve policy further limits the circumstances under which bank holding companies may declare dividends. For example, a bank holding company should not continue its existing rate of cash dividends on its common stock unless its net income is sufficient to fully fund each dividend and its prospective rate of earnings retention appears consistent with its capital needs, asset quality and overall financial condition. In addition, the Federal Reserve and the FDIC have issued policy statements, which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings. Federal and state banking regulators may also restrict the payment of dividends by order.

Previous wording

The Company, on an unconsolidated basis, has interest-bearing deposits totaling $1.0 million as of September 30, 2024.

Current wording

The Company, on an unconsolidated basis, has interest-bearing deposits totaling $1.3 million as of March 31, 2025.

Previous wording

The Company’s total stockholders’ equity as of September 30, 2024 totaled $183.4 million and was $17.6 million higher than the $165.8 million recorded as of December 31, 2023. The increase in stockholders’ equity was primarily the result of a decrease in unrealized losses on the investment portfolio. At September 30, 2024 and December 31, 2023, stockholders’ equity as a percentage of total assets was 8.6% and 7.7%, respectively. The capital levels of the Company currently exceed applicable regulatory guidelines to be considered “well capitalized” as of September 30, 2024. Unrealized losses on the investment portfolio are excluded from regulatory capital.

Current wording

The Company’s total stockholders’ equity as of March 31, 2025 totaled $183.1 million and was $8.4 million higher than the $174.7 million recorded as of December 31, 2024. The increase in stockholders’ equity was primarily the result of a decrease in unrealized losses on the investment portfolio and the retention of net income in excess of dividends. At March 31, 2025 and December 31, 2024, stockholders’ equity as a percentage of total assets was 8.4% and 8.2%, respectively. The capital levels of the Company currently exceed applicable regulatory guidelines to be considered “well capitalized” as of March 31, 2025. Unrealized losses on the investment portfolio are excluded from regulatory capital.

Previous wording

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this Quarterly Report, including forward-looking statements concerning the Company’s financial performance and asset quality. Forward-looking statements contained in this Quarterly Report are not historical facts and are based on management’s current beliefs, assumptions, predictions and expectations of future events, including the Company’s future performance, taking into account all information currently available to management. These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management’s control. If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “forecasts”, “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. The risks and uncertainties that may affect the Company’s future performance and asset quality include, but are not limited to, the following: the impact of inflation and changing interest rates on national, regional and local economies in general and on the Company’s customers in particular; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses resulting from new market conditions or regulatory requirements; fiscal and monetary policies of the U.S. government; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company’s business, including those discussed under the headings Forward-Looking Statements and Business Risks” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2023. Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on which such statements are made. The Company undertakes no obligation to revise or update such forward-l…

Excerpt shortened here; the source contains the full paragraph.

Current wording

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this News Release, including forward-looking statements concerning the Company’s future performance and asset quality. Forward-looking statements contained in this News Release are not historical facts and are based on management’s current beliefs, assumptions, predictions and expectations of future events, including the Company’s future performance, taking into account all information currently available to management. These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management’s control. If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “forecasts”, “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. The risks and uncertainties that may affect the Company’s future performance and asset quality include, but are not limited to, the following: national, regional and local economic conditions and the impact they may have on the Company and its customers; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses as dictated by new market conditions or regulatory requirements; changes in local, national and international economic conditions, including rising inflation rates; fiscal and monetary policies of the U.S. government; the imposition of tariffs and retaliatory tariffs; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company’s business, including those discussed under the headings “Forward-Looking Statements and Business Risks” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2024. Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on w…

Excerpt shortened here; the source contains the full paragraph.