2ND QUARTER | 2021QUARTERLY REPORTTO SHAREHOLDERS

Company Stock

ATLONASDAQ Capital Market

June 30, 2021 Closing Price: $24.51

Second Quarter Price Range: $24.20 to $26.21

Cash Dividend Declared on July 14, 2021: $ 0.26(Payable on August 13, 2021)

Dividend Yield 4.24%

SECOND QUARTER 2021FINANCIAL HIGHLIGHTS• Net income for the Company totaled $5.9 million for the second quarter of 2021,

or $0.64 per share, compared to $4.4 million, or $0.49 per share, earned in the second quarter of 2020. The increase in earnings is primarily the result of a decrease in provision for loan losses due to a higher level of provision in 2020 as a result of the onset of the COVID-19 pandemic and a reduction in interest expense due to declines in market interest rates.

• Loan interest income was $443 thousand lower than second quarter 2020. The decrease is primarily due to a reduction in interest rates, offset in part by $1.3 million of fees recognized from Paycheck Protection Program (PPP) loans during the second quarter of 2021. Deposit interest expense declined $774 thousand during this same time period, primarily due to market rate declines offset in part by increases in deposit balances. Second quarter 2021 net interest income totaled $14.2 million, an increase of $492 thousand, or 4%, compared to the same quarter a year ago. The Company’s net interest margin was 2.84% for the quarter ended June 30, 2021 as compared to 3.10% for the quarter ended June 30, 2020, as growth in deposits was reinvested in loans and investments at lower market interest rates.

• A credit for loan losses of ($20) thousand was recognized in the second quarter of 2021 as compared to a provision for loan losses of $1.6 million in the second quarter of 2020. Net loan recoveries totaled $6 thousand for the quarter ended June 30, 2021 compared to net loan charge offs of $471 thousand for the quarter ended June 30, 2020. The credit for loan losses was primarily due to improving economic conditions. The provision for loan losses in 2020 was primarily due to the onset of the COVID-19 pandemic.

• Noninterest income for the second quarter of 2021 totaled $2.6 million as compared to $2.4 million in the second quarter of 2020, an increase of 9%. The increase in noninterest income was primarily due to an increase in wealth management income and partially offset by a decrease in gains on sale of residential loans held for sale as refinancing has slowed.

• Noninterest expense for the second quarter of 2021 totaled $9.4 million compared to $9.1 million recorded in the second quarter of 2020, an increase of 3%. The increase is primarily due to an increase in FDIC insurance assessments, professional fees and losses on other real estate owned. The efficiency ratio was 56.0% for the second quarter of 2021 as compared to 56.5% in the second quarter of 2020.

Three Months EndedJune 30,

2021 2020Net Income (Thousands of Dollars) $ 5,879 $ 4,427Earnings Per Share – Basic $ 0.64 $ 0.49Return on Average Assets (ROA) 1.12% 0.94%Return on Average Equity (ROE) 11.39% 9.09%Efficiency Ratio 56.01% 56.49%Net Interest Margin (FTE) 2.84% 3.10%Equity Capital Ratio 10.08% 10.60%

20202021

$4.4$5.9

$3.5$3.0 $4.0 $4.5 $5.0 $5.5 $6.0

NET INCOMEMillions of DollarsQuarter Ended June 30

20202021

$1,146$1,124

$900$800 $1,000 $1,100 $1,200 $1,300 $1,400

LOANSMillions of DollarsAs of June 30

20202021

$1,897$2,085

$1,600$1,500 $1,700 $1,800 $1,900 $2,000 $2,100

ASSETSMillions of DollarsAs of June 30

DEPOSITSMillions of DollarsAs of June 30

AT A GLANCEFINANCIAL HIGHLIGHTS

20202021

$1,644$1,831

$1,500$1,400 $1,600 $1,700 $1,800 $1,900 $2,000

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

ASSETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Total stockholders’ equityTotal liabilities and stockholders’ equity

(unaudited)

CONSOLIDATED BALANCE SHEETS

$ 32,528 145,991 513,616

3,155 1,146,046

2,033 17,629 10,801

2,879 -

3,525 12,424

6,345 $ 1,896,972

Cash and due from banksInterest bearing deposits in financial institutions & Fed Funds soldSecurities available-for-saleFederal Home Loan Bank and Federal Reserve Bank stock, at costLoans receivable, netLoans held for saleBank premises and equipment, netAccrued income receivableBank-owned life insurance Deferred income taxes, netOther intangible assets, netGoodwillOther assets Total assets

$ 332,286 483,066 553,547

69,190 205,454

1,643,543

36,893 3,000 1,195

11,191 $ 1,695,822

$ 18,245 17,002

151,910 13,993

201,150

$ 1,896,972

Deposits Noninterest-bearing checking Interest-bearing checking Savings and money market Time, $250 and over Other time Total deposits

Securities sold under agreements to repurchaseFederal Home Loan Bank advancesDeferred income taxes, netAccrued expenses and other liabilities Total liabilities

2021

$ 12,127

2,212 823 169

15,331

1,124 35

1,159 14,172

(20)

14,192

1,145 347

- 380 556 208

2,636

5,772 1,310

639 148515 254 160159 457

9,414 7,414

1,535

$ 5,879

$ 0.64

$ 0.26

$ 24,111

4,201 1,667

347

30,326

2,418 72

2,490 27,836

( 446)

28,282

2,077 680

- 884

1,020 481

5,142

11,279 2,682 1,367

287 911 491

320 319 764

18,420 15,004

3,102

$ 11,902

$ 1.30

$ 0.51

NONINTEREST INCOME:Wealth management income Service feesSecurities gains, netGain on sale of loans held for saleMerchant and card feesOther noninterest income Total noninterest income

NONINTEREST EXPENSE:Salaries and employee bene�tsData processingOccupancy expenses, netFDIC insurance assessmentsProfessional feesBusiness developmentIntangible asset amortizationNew markets tax credits projects amortizationOther 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

INTEREST AND DIVIDEND INCOME:Loans, including feesSecurities Taxable Tax-exemptOther interest and dividend income Total interest & dividend income

INTEREST EXPENSE:DepositsOther borrowed funds Total interest expense Net interest incomeProvision for loan losses Net interest income after provision for loan losses

Three Months EndedJune 30,

Six Months EndedJune 30,

2020 2021 2020

STOCKHOLDERS’ EQUITY

June 30,2021

June 30,2020

$ 24,890 141,282 740,102

3,427 1,124,435

311 16,925

9,596 2,950 323

2,813 12,424

5,982 $ 2,085,460

$ 375,735 564,268 658,482

49,430 183,484

1,831,399

33,268 3,000

- 7,671

$ 1,875,338

$ 18,245 17,002

165,466 9,409

210,122

$ 2,085,460

$ 12,570

1,918 954196

15,638

1,898 60

1,958 13,680 1,567

12,113

909 305

44 572 410 188

2,428

5,813 1,336

657 50

397 182 217 146

301 9,099 5,442

1,015

$ 4,427

$ 0.49

$ -

$ 25,157

3,739 1,864

713

31,473

4,548 199

4,74726,726

3,883

22,843

1,771 746 430

839 836 437

5,059

11,588 2,527 1,348

50 741

446 434 291 724

18,149 9,753

1,771

$ 7,982

$ 1.87

$ 0.25

Common stock, $2 par value, authorized 18,000,000 shares; issued and outstanding 9,122,747 shares as of June 30, 2021 and 2020Additional paid-in capitalRetained earningsAccumulated other comprehensive income

(dollars in thousands, except share and per share data) (dollars in thousands, except per share data)

MISSION STATEMENTAmes National Corporation is a result-oriented financial services holding company providing leadership, counsel and support to its commu-nity 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

AFFILIATE BANKS

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

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. SWARTZRetired Chief Executive Officer, Wolfe Clinic PC

COMPANY DIRECTORS