Ames National Corporation (ATLO) reported Q2 2024 results ending June 30, 2024 that reflect a meaningful year‑over‑year revenue uplift alongside a compressed margin on a pre‑tax basis, yielding a modest single‑digit net income and EPS of $0.24. Revenue of $23.15 million rose approximately 70% year over year, driven by the low base in the prior-year quarter, while operating income was $2.57 million with an operating margin of about 11.1%. Net income stood at $2.18 million for the quarter, translating to a net margin of 9.4% and an annualized return on equity (ROE) near 1.3%. Despite a positive operating cash flow of roughly $3.89 million and free cash flow around $3.79 million, the company posted a meaningful negative net change in cash of about $48.0 million for the period driven predominantly by financing activity, as cash at period-end stood at $63.44 million versus $111.40 million at the start of the quarter.
The balance sheet remains liquidity-rich for a regional bank with total assets of approximately $2.13 billion and a strong liquidity profile (cash and short-term investments of $760.7 million against a modest debt burden). The reported debt load of about $126.6 million yields a debt‑to‑capitalization of roughly 43%, and interest coverage around 2x, suggesting modest earnings sensitivity to rising funding costs. The quarterly metrics show a healthy gross margin around 57.5%, but profitability is constrained by elevated interest expense within the period and the absence of explicit forward guidance in the release. Management commentary (where available) did not publish formal guidance, requiring investors to watch for indicators such as credit quality, loan growth, deposit trends, and fee-based revenue opportunities as catalysts for profitability and balance sheet strength going forward.