Ames National Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported total interest income of $11,113,646 against $10,902,752 a year ago. Net interest income was $10,033,511 against $9,892,182 a year ago. Net interest income after provision for loan losses was $9,949,933 against $9,829,609 a year ago. Income before income taxes was $5,741,677 against $5,474,815 a year ago. Net income was $4,024,424 against $3,915,061 a year ago. Basic and diluted earnings per share were $0.43 against $0.42 a year ago. The improved earnings are primarily the result of higher loan interest income attributable to higher loan volume, offset in part by lower security interest income and net securities gains. The growth in net interest income was mainly due to added loan volume in the Des Moines metro market which was funded primarily by securities that were matured, called or sold. Return on average assets was 1.20% compared to 1.18% for the same period in 2015. Return on average equity was 9.52% compared to the 9.69% in 2015.

For the year, the company reported total interest income of $44,046,039 against $43,150,345 a year ago. Net interest income was $39,910,758 against $38,965,206 a year ago. Net interest income after provision for loan losses was $39,386,393 against $37,866,023 a year ago. Income before income taxes was $22,539,282 against $20,821,195 a year ago. Net income was $15,734,776 against $15,014,651 a year ago. Basic and diluted earnings per share were $1.69 against $1.61 a year ago. The higher earnings are primarily the result of an increase in loan interest income, a lower provision for loan losses, and lower other real estate owned expenses, offset in part by a decrease in securities interest income, lower securities gains and an increase in salaries and benefits. Net interest income increased of $946,000, or 2%, compared to the same period a year ago, due primarily to growth in the real estate loan portfolio. Return on average assets was 1.18% compared to 1.13% for the same period in 2015. Return on average equity was 9.38% compared to the 9.44% in 2015.

The company is forecasting earnings for the year ending December 31, 2017 in the range of $1.63 to $1.69 per share compared to $1.69 per share earned for the year ended December 31, 2016. The lower earnings forecast is attributable to projected increases in market interest rates causing deposit interest expense to increase faster than interest income on earning assets in 2017.

The company's net loan charge offs remained at a favorable level and totaled $27,000 for the quarter ended December 31, 2016 compared to net loan charge offs of $1,000 for the quarter ended December 31, 2015.