AMES NATIONAL CORPORATION

Climate Impact & Sustainability Data (2022, 2023)

Contributed over $190 thousand to various charitable and community organizations in 2022.
Company employees volunteered approximately 10,000 hours serving various charitable organizations in our Banks’ communities.

Separated the CEO and Board Chair positions, with the Board Chair being a director who is independent under the NASDAQ governance standards.
Ten of the twelve board members are independent directors.
All directors serving on Board committees are independent under NASDAQ governance standards.
A significant portion of compensation of the executive officers is dependent on Company’s operating results.

If interest rates continue to increase over a relatively short period of time due to higher inflationary numbers or other factors, the interest rate environment may present a challenge to the Company.
If market interest rates in the three to five year term remain at low levels as compared to the short term interest rates, the interest rate environment may present a challenge to the Company.
The agricultural community is subject to commodity price fluctuations.
The current economic environment, characterized by increasing interest rates in response to significant inflationary pressures in the economy and the potential for a period of slower or negative economic growth resulting from efforts to dampen economic activity, has heightened the level of challenges, risks and uncertainties facing our business

The Banks model quarterly the changes in income that would result from various changes in interest rates. Based on this modeling, management believes Bank earning assets currently have the appropriate maturity and repricing characteristics to optimize earnings and the Banks’ interest rate risk positions.

Contributed over $205 thousand to various charitable and community organizations in 2023.
Company employees volunteered approximately 10,600 hours serving various charitable organizations in our Banks’ communities.

Separated the CEO and Board Chair positions, with the Board Chair being a director who is independent under the NASDAQ governance standards.
Nine of the eleven board members are independent directors.
All directors serving on Board committees are independent under NASDAQ governance standards.
Established an age limitation policy for directors.
Three of the eleven directors are female.
All directors own Company stock and in their capacities as directors of the Banks participated in the Director Stock Incentive Plan adopted by each of the Banks.
Company CEO is excluded from the Director Stock Incentive Plan.
Certain transactions in Company stock are prohibited, including short-selling and hedging.
A significant portion of compensation of the executive officers is dependent on the Company’s operating results.
Executive officer performance is evaluated annually.

Elevated short-term interest rates due to inflationary pressures.
Low three-to-five-year term market interest rates compared to short-term rates.
Agricultural industry risks (commodity price fluctuations, weather, trade policies).
Economic slowdown impacting net income and fair value.
Decline in investment portfolio fair value.
Potential need to reduce or forego dividend payments.