1ST QUARTER | 2020QUARTERLY REPORTTO SHAREHOLDERS

Company Stock

ATLONASDAQ Capital Market

March 31, 2020 Closing Price: $20.45

First Quarter Price Range: $18.00 – $28.05

Declared Quarterly Cash Dividend: $0.25(To be paid on May 15, 2020)

FIRST QUARTER FINANCIAL HIGHLIGHTS• Net income for the first quarter totaled $3.6 million, or $0.39 per

share, compared to $4.2 million, or $0.46 per share, earned in the first quarter of 2019. The decrease in earnings is primarily the result of the additional provision for loan losses in 2020.

• The State of Iowa began to place significant restrictions on companies and individuals on March 9, 2020 as a result of the COVID-19 pandem-ic. As an organization that focuses on community banking, we are concerned about the health of our customers, employees and local communities and keep that thought at the forefront of our decisions. As the economic slowdown continues to evolve due to COVID-19 restrictions, our customers may experience decreased revenues, which may correlate to an inability to make timely loan payments or maintain payroll. This, in turn, could adversely impact the revenues and earnings of the Company by, among other things, requiring further increases in our allowance for loan losses and increases in the level of charge-offs in our loan portfolio. We would also expect a slowdown in traditional loan demand, although the volume of certain types of government guaranteed loans under the CARES Act currently are estimated to close between $65 million and $70 million in the second quarter of 2020.

• As previously announced, the Company acquired Iowa State Savings Bank on October 25, 2019. The acquired assets totaled approximately $215 million. Retention of loan and deposit customers from the Acquisition has been favorable. The impact of the Acquisition on the Company’s quarterly net income was accretive.

• Total assets were $1.8 billion, a $325 million increase in assets, com-pared to March 31, 2019. Net loans increased 22%, to just over $1 billion, as compared to $887 million as of first quarter 2019. Deposits totaled nearly $1.6 billion on March 31, 2020, compared to $1.3 billion recorded at March 31, 2019. The increases are primarily a result of the Acquisition.

Three Months EndedMarch 31,

2019 2020Net Income $ 4,200,000 $ 3,600,000Earnings Per Share – Basic $ 0.46 $ 0.39Dividends Per Share $ 0.24 $ 0.25Return on Average Assets (ROA) 1.20% 0.80%Return on Average Equity (ROE) 9.70% 7.40%Efficiency Ratio 57.80% 57.70%Net Interest Margin (FTE) 3.23% 3.18%Capital Ratio 10.48% 12.07%

20192020

$4.2$3.6

$2.5$2.0 $3.0 $3.5 $4.0 $4.5 $5.0

NET INCOMEMillions of DollarsQuarter Ended March 31

20192020

$887$1,080

$700$600 $800 $900 $1,000 $1,100 $1,200

LOANSMillions of DollarsAs of March 31

20192020

$1,472$1,799

$1,300$1,200 $1,400 $1,500 $1,600 $1,700 $1,800

ASSETSMillions of DollarsAs of March 31

DEPOSITSMillions of DollarsAs of March 31

AT A GLANCEFINANCIAL HIGHLIGHTS

20192020

$1,253

$1,552$1,100$1,000 $1,200 $1,300 $1,400 $1,500 $1,600

CONSOLIDATED STATEMENTS OF INCOME

(unaudited) March 31, 2020

ASSETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Total stockholders’ equityTotal liabilities and stockholders’ equity

(unaudited)

INTEREST & DIVIDEND INCOME:LoansSecurities

TaxableTax-exempt

Other interest and dividend income

Total interest & dividend income

INTEREST EXPENSE:

DepositsOther borrowed funds

Total interest expense

Net interest income

Provision for loan lossesNet interest income after provision for loan losses

NONINTEREST INCOME:Wealth management income

Service fees

Securities gains, netGain on sale of loans held for sale

Total noninterest income

NONINTEREST EXPENSE:

Salaries and employee benefits

Data processing

Occupancy expenses, net

FDIC insurance assessments

Professional fees

Business development

Intangible asset ammortization

New market tax credit amortization

Other operating expenses, net Total noninterest expense

Income before income taxes

INCOME TAX EXPENSE:

NET INCOME

Basic and diluted earnings per share

Declared dividends per share

CONSOLIDATED BALANCE SHEETS

$ 32,056,710

136,466,280

489,303,666

3,160,000

1,079,657,447

907,295

17,686,951

10,247,519

1,712,661

2,860,761

1,669,013

3,742,037

12,424,434

5,851,660

$ 1,797,746,434

Cash and due from banks

Interest bearing deposits in financial institutions

Securities available-for-sale

Federal Home Loan Bank and Federal Reserve Bank stock, at cost

Loans receivable, net

Loans held for sale

Bank premises and equipment, net

Accrued income receivable

Other real estate owned

Bank-owned life insurance

Deferred income taxes, net

Other intangible assets, net

Goodwill

Other assets

Total assets

$ 267,144,851

496,017,100

505,757,908

75,667,723

207,837,426

1,552,425,008

41,617,753

3,000,000

2,297,149

9,913,147

$ 1,609,253,057

$ 18,377,188

18,155,547

147,482,450

4,478,192

188,493,377

$ 1,797,746,434

Deposits

Demand, noninterest bearing

NOW accounts

Savings and money market

Time, $250,000 and over

Other time

Total deposits

Securities sold under agreements to repurchase

Federal Home Loan Bank advances and other borrowings

Dividend payable

Accrued expenses and other liabilities

Total liabilities

Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 9,188,594 and 9,242,822 shares as of March 31, 2020 and 2019, respectivelyAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss)

March 31, 2019

2020

$ 12,587,014

1,821,240

909,897

517,312

15,835,463

2,650,366 139,172

2,789,538

13,045,925

2,316,155

10,729,770

861,733

440,693

386,015

266,740

425,840250,171

2,631,192

5,775,196

1,191,052

691,186

-

343,724

264,143

217,223

145,381

422,144

9,050,049

4,310,913

756,400

$ 3,554,513

$ 0.39

$ 0.25

Three Months EndedMarch 31,

Merchant and card feesOther noninterest income

2019

STOCKHOLDERS’ EQUITY

$ 10,701,429

1,488,852

1,100,574

237,568

13,528,423

2,358,832 199,214

2,558,046

10,970,377

98,094

10,872,283

784,614

370,296

-

172,726

361,141

236,931

1,925,708

4,715,828

891,381

599,005

100,229

388,846

268,597

163,664

- 329,206

7,456,756

5,341,235

1,103,800

$ 4,237,435

$ 0.46

$ 0.24

$ 24,133,336

58,738,001

455,553,634

2,661,600

886,556,795

256,500

15,698,236

9,101,698

564,667

2,789,711

2,355,018

2,514,220

9,744,472

1,649,475

$ 1,472,317,363

$ 221,211,912

386,717,224

424,084,571

49,058,130

171,442,325

1,252,514,162

32,396,757

2,000,000

2,218,277

5,411,409

$ 1,294,540,605

$ 18,485,644

19,269,247

139,918,120

103,747

177,776,758

$ 1,472,317,363

MISSION STATEMENTAmes National Corporation is a result-oriented financial services holding company providing leadership, counsel and support to its community affiliate banks and superior performance for its shareholders.

CORE VALUESExcellenceStriving to exceed expectations

IntegrityDemonstrating high moral and ethical conduct

LeadershipCreating and developing opportunities that benefit our employees, customers, communities, and shareholders

StabilityMaintaining financial strength and a dedicated staff to successfully serve the current and future needs of our employees, customers, communities, and shareholders

TrustActing in the best interest of our employees, customers, and shareholders

CommunityDedicated to serving our communities through local decision making, community involvement and active boards of directors

THOMAS H. POHLMANChairman, Ames National Corporation

JOHN P. NELSONPresident & CEO, Ames National Corporation

DAVID W. BENSONAttorney, Nyemaster Goode, P.C.

MICHELLE R. CASSABAUMChief Operating and Financial Officer, 21st Century Rehab P.C.

LISA M. ESLINGERChief Financial and Administrative Officer,Iowa State University Foundation

STEVEN D. FORTHFarmer

PATRICK G. HAGANRetired Senior Vice President and Treasurer,Fareway Stores, Inc.

BETTY A. BAUDLER HORRASPresident, Baudler Enterprises, Inc.

JAMES R. LARSON, IIPresident, Larson Development Corporation

JOHN L. PIERSCHBACHERChief Financial Officer, Ames National Corporation

KEVIN L. SWARTZChief Executive Officer, Wolfe Clinic PC

COMPANY DIRECTORS

AFFILIATE BANKS

Ames National Corporation405 5th Street • Ames, IA 50010PHONE 515-232-6251FAX 515-663-3033EMAIL info@amesnational.comWEBSITE www.amesnational.com