Ames National : Third Quarter Report

Dear Shareholder,

We are pleased to provide you with the 2019 Third Quarter Report.

Click here for the complete summary. We are growing and building an organization of which you can be proud to be an investor, and we are dedicated to providing a strong return to you.

Thank you for your ongoing support of Ames National Corporation. If you have any questions or would like to provide feedback, we encourage you to contact us at [phone] or email [e-mail].

Sincerely,

Third Quarter Highlights

Stock Repurchase Program Authorized

On November 13, 2019, the Ames National Corporation Board of Directors approved a stock repurchase program at its regular meeting. The Company has a strong capital position and this will provide an opportunity to repurchase Company stock on the open market when it is deemed to be favorably priced for repurchase. The program authorizes the repurchase of up to 100,000 shares, or approximately 1.1% of 9,222,747 shares of common stock outstanding as of November 13, 2019.

This program commenced on November 13, 2019 and expire on November 10, 2020. The Company purchased 17,608 shares in 2018 and 70,558 shares in 2019. The repurchases will be made in open market transactions at the discretion of management using Company cash. The timing and actual number of shares purchased will depend on a variety of factors such as price, the Company's liquidity position and other market conditions.

Dividend Declared

On November 13, 2019, Ames National Corporation declared a cash dividend of $0.24 per common share. The dividend is payable February 14, 2020, to shareholders of record at the close of business on January 31, 2020.

John P. Nelson President & CEO Ames National Corporation

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ACQUISITION OF IOWA STATE SAVINGS BANK COMPLETE

On October 28, 2019, the completion of the previously announced acquisition of Iowa State Savings Bank (ISSB) was announced. ISSB is headquartered in Creston, Iowa with offices in Creston, Lenox, Corning and Diagonal, Iowa. The acquisition was structured as a purchase of all the outstanding stock of ISSB from its parent holding company for a cash payment of approximately $22.3 million.

ISSB has approximately $210 million in assets, $138 million in loans and $187 million in deposits as of October 25, 2019. The addition of ISSB brings a stable loan and deposit customer base, a talented team bankers and an expanded geographic footprint for the Company. The synergies between the ISSB and the Company's approach to customer service and community involvement are also key components in this strategic acquisition.

We are pleased to welcome the ISSB organization to Ames National Corporation. Iowa State Savings Bank will remain a separately-chartered Bank with local decisions, no name change, no account changes and the current management team continuing to lead the bank. As the Company continues to actively seeking growth opportunities to enhance shareholder value, we believe this acquisition will be an excellent fit for our community banking model.
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