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NEWS RELEASE FOR IMMEDIATE RELEASE JULY 16 , 2021 CONTACT : JOHN P. NELSON CEO AND PRESIDENT ( 515 ) 232-6251 AMES NATIONAL CORPORATION ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF 2021 EXHIBIT 99.1 Second Quarter 2021 results : For the quarter ended June 30 , 2021 , net income for the Company totaled $ 5.9 million , 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 . Second quarter 2021 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 . As the economic conditions due to the COVID - 19 pandemic continue 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 June 30 , 2021 , approximately 6.8 % of our loan portfolio is associated with these industries . There have been requests for loan payment modifications , mainly in 2020 , 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 $ 15.3 million as of June 30 , 2021. In addition to these modifications , certain types of government guaranteed loans originated under the PPP of approximately $ 37.6 million are outstanding as of June 30 , 2021. Fee income from PPP loans of $ 1.3 million was recognized into interest income for the three months ended June 30 , 2021. As of June 30 , 2021 , the Company has $ 2.3 million of unrecognized net PPP loan fees and costs that are amortizing to interest income over the remaining life of the PPP 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 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 .