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NEWS RELEASE FOR IMMEDIATE RELEASE APRIL 16 , 2021 CONTACT : JOHN P. NELSON CEO AND PRESIDENT ( 515 ) 232-6251 AMES NATIONAL CORPORATION ANNOUNCES EARNINGS FOR THE FIRST QUARTER OF 2021 EXHIBIT 99.1 First Quarter 2021 results : For the quarter ended March 31 , 2021 , net income for the Company totaled $ 6.0 million , or $ 0.66 per share , compared to $ 3.6 million , or $ 0.39 per share , earned in the first quarter of 2020. The increase in earnings is primarily the result of a decrease in provision for loan losses due to the onset of the COVID- 19 pandemic in 2020 and a reduction in interest expense due to declines in market interest rates . First quarter 2021 interest income was $ 840 thousand lower than first quarter 2020. The decrease is primarily due to a reduction in interest rates , offset in part by $ 840 thousand of fees recognized from Paycheck Protection Program ( PPP ) loans and $ 335 thousand of recognized nonaccrual interest income . Deposit interest expense declined $ 1.4 million during this same time period , primarily due to market rate declines offset in part by increases in deposit balances . First quarter 2021 net interest income totaled $ 13.7 million , an increase of $ 618 thousand , or 5 % , compared to the same quarter a year ago . The increase in net interest income was primarily due to a reduction in interest expense due to declines in market rates . The Company's net interest margin was 2.86 % for the quarter ended March 31 , 2021 as compared to 3.18 % for the quarter ended March 31 , 2020 . A negative provision for loan losses of ( $ 426 ) thousand was recognized in the first quarter of 2021 as compared to $ 2.3 million in the first quarter of 2020 . Net loan recoveries totaled $ 118 thousand for the quarter ended March 31 , 2021 compared to net loan charge offs of $ 26 thousand for the quarter ended March 31 , 2020. The negative provision for loan losses was primarily due to loan recoveries , a reduction in a specific reserve and lower loan balances from year - end . The provision for loan losses in 2020 was primarily due to the onset of the COVID - 19 pandemic . As the economic slowdown and recovery due to the COVID - 19 pandemic continues to evolve , 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 increases in our allowance for loan losses and increases in the level of charge - offs in our loan portfolio . The COVID - 19 pandemic has more significantly impacted the Company's hospitality and fitness center loans . As of March 31 , 2021 , approximately 6.8 % of our loan portfolio is associated with these industries . There have been requests for loan payment modifications due to the COVID - 19 pandemic and these modifications were primarily related to payment deferrals or interest only payments . The total loans still in the modification period were approximately $ 15.4 million as of March 31 , 2021. In addition to these modifications , certain types of government guaranteed loans originated under the PPP of approximately $ 59.2 million are outstanding as of March 31 , 2021. Fee income from PPP loans of $ 840 thousand was recognized into interest income for the three months ended March 31 , 2021. As of March 31 , 2021 , the Company has $ 3.1 million of unrecognized PPP loan fees that are amortizing to interest income over the life of the loans . The federal government is providing numerous other programs to lessen the effects of COVID - 19 on the economy and , in turn , our loan portfolio . Noninterest income for the first quarter of 2021 totaled $ 2.5 million as compared to $ 2.6 million in the first quarter of 2020 , a decrease of 5 % . The decrease in noninterest income was primarily due to securities gains recognized in the first quarter of 2020 and partially offset by an increase in gains on sale of residential loans held for sale . Noninterest expense for the first quarter of 2021 totaled $ 9.0 million compared to $ 9.1 million recorded in the first quarter of 2020 , a decrease of 1 % . The decrease is primarily due to salaries and employee benefits and partially offset by an increase in data processing costs . The decrease in salaries and employee benefits is due to a reduction in the number of personnel and increased deferred loan costs due to PPP loan volume , offset in part by normal salary and benefit increases . The efficiency ratio was 55.7 % for the first quarter of 2021 as compared to 57.7 % in the first quarter of 2020 .