Ames National Q3 profit jumps as wider interest margin lifts income

Overview

• U.S. regional bank's Q3 net income and EPS rose yr/yr, driven by higher net interest income

• Net interest margin improved to 3.38% from 2.83% a year ago

• Noninterest income increased, mainly from wealth management fees and storm-related insurance proceeds

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in its press release

Result Drivers

• HIGHER INVESTMENT YIELDS - Co said improved yields and higher average balances on investment securities contributed to increased net interest income

• DECLINING COST OF FUNDS - Lower market rates reduced deposit costs, while lower borrowings reduced funding expenses

• WEALTH MANAGEMENT FEES - Co said increase in wealth management income was driven by estate and trust fees from concluded estates and growth in assets under management

Company press release: Full Story

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Ames National Corp is $33.00, about 2.6% above its October 15 closing price of $32.15

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 16 - M&T Bank Q3 adjusted EPS beats estimates on loan growth

• Oct 16 - Regions Financial Q3 profit beats estimates on higher interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)