Ames National Corporation — Cyborg Score 7/10

Strong
Regional Banking / Multi-Bank Holding Company

Strategic Profile

The company provides comprehensive lending services including commercial, agricultural, and residential real estate loans, along with consumer loans, and offers cash management, merchant credit card processing, wealth management, farm management, and online banking services. Recent management confidence is evidenced by a 20% increase in quarterly dividends, signaling strong cash generation ability.

Cyborg Score Rationale

The company trades at a reasonable PE ratio of 12.27 with a market cap of $196.3 million and maintains a stable beta of 0.42. Recent 20% dividend increase reflects management confidence, and the company demonstrates consistent cash-generating ability typical of stable regional banks. Small cap regional banking exposure presents both opportunity and geographic concentration risks.

Top Insights

  • Recent 20% dividend increase (Feb 2026) signals management confidence in earnings stability and cash generation
  • Established regional presence since 1903 with deep roots in Iowa agricultural and small business lending
  • Small-cap positioning ($196M market cap) offers liquidity constraints but focused local market expertise
  • Modest recent revenue growth (2.24% in 2024) reflects mature market position with limited expansion optionality

Named Competitors

  • Community Banking Services — Direct competitors in Iowa community banking market
  • Agricultural Lending — Specialized agricultural lending alternatives

Recent Developments

  • (February 2026) Board increased quarterly dividend by 20% to $0.24 per share, payable March 13, 2026
  • (February 2026) Announced board nominees for April 2026 annual meeting including new director Amy F. Rieck
  • (January 2026) Reported Q4 2025 earnings of $0.73 EPS with $15.34 million quarterly revenue

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