Ames National (ATLO) risk factors, FY2025 10-K

Other

1. 01Changes in general business, economic and political conditions may adversely affect the Company’s business34% rewritten
2. 02Continuing inflationary pressures may affect the Company’s interest rates, credit loss expenses and general operating expenses78% rewritten
3. 03Developments with respect to global trade policies, including changing tariffs and the imposition of new or increased tariffs and related uncertainty thereof, could have a material adverse effect on the Company’s customers and thereby negatively impact its business, results of operations or financial conditionNew
4. 04The Company’s business depends on our ability to successfully manage credit risk
5. 05The commercial real estate loan portfolio is a significant part of the Company’s business and subject to the risk of fluctuating collateral values
6. 06If the Company’s actual credit losses exceed the allowance for credit losses or increase significantly, the Company’s net income will decrease
7. 07Loans to agricultural-related borrowers are subject to factors beyond the Company’s control, including fluctuations in commodity and livestock prices, government trade policies and other risks, which could negatively impact the Company’s loan portfolio
8. 08Fair values of investments in the Company’s securities portfolio may adversely change
9. 09Changes in interest rates could adversely affect the Company’s results of operations and financial condition
10. 10The inability to deploy or maintain liquidity may adversely affect the Company’s business
11. 11The Company relies on dividends and other payments from its Banks for substantially all of its revenue

Operational Risks

1. 12The Company may not be able to attract and retain key personnel and other skilled employees
2. 13The Company is subject to certain operational risks, including, but not limited to, data processing system failures, errors, data security breaches and customer or employee fraud
3. 14Use of artificial intelligence may result in reputational harm or liability, or could otherwise adversely affect the Company’s businessNew
4. 15Security breaches involving us, the Banks or any third parties with which we do business could expose us to liability and litigation, adversely affecting our reputation and operating revenues
5. 16An impairment charge of goodwill or other intangibles could have a material adverse impact on the Company’s results of operations and financial condition
6. 17Changes in accounting policies or accounting standards, or changes in how accounting standards are interpreted or applied, could materially affect how the Company reports its results of operations and financial condition
7. 18The Company’s accounting policies and methods require management to make estimates about matters that are inherently uncertain
8. 19The Company’s operations are concentrated in Iowa
9. 20Damage to the Company’s reputation could adversely affect our business
10. 21Changes in technology could be costly or difficult to implement
11. 22A breach of information security, compliance breach, or error by one of the Company’s agents or vendors could negatively affect the Company’s reputation and business

Strategic and External Risks

1. 23The Company may have difficulty continuing to grow, and even if we do grow, our growth may strain our resources and limit our ability to expand operations successfully
2. 24The Company faces competition from other financial institutions
3. 25financial technology, or fintech, companies emerging in key areas of banking
4. 26Federal Government spending and increase in monetary supply could adversely affect our business
5. 27The Company may be adversely affected by risks associated with completed and potential acquisitions
6. 28Current and future government regulations may increase the Company’s costs of doing business
7. 29the ability to provide or expand securities or trust services
8. 30Severe weather, natural disasters, pandemics, acts of war or terrorism or other adverse external events could significantly impact our business

Risks related to the Company’s Stock

1. 31The Company may not pay dividends on its common stock in the future