EXHIBIT 99.1

NEWS RELEASE	CONTACT:      THOMAS H. POHLMAN
FOR IMMEDIATE RELEASE	CHIEF EXECUTIVE OFFICER AND PRESIDENT
	(515) 232-6251

OCTOBER 16, 2015                                                           

AMES NATIONAL CORPORATION

ANNOUNCES 2015 THIRD QUARTER EARNINGS RESULTS

Third Quarter 2015 Results:

For the quarter ended September 30, 2015, net income for Ames National Corporation (the Company) totaled $4,100,000 or $0.44 per share, compared to $3,731,000 or $0.40 per share earned in 2014. The higher earnings are the result of increased loan interest income primarily driven by higher loan volume from new loan originations as well as loans acquired.

As previously announced, the Company’s largest subsidiary bank, First National Bank (FNB), acquired First Bank, West Des Moines, Iowa on August 29, 2014 (the “Acquisition”). The acquired assets totaled approximately $89 million. The impact of the Acquisition on the Company’s net income was not significant for the quarter but in line with expectations.

Third quarter net interest income totaled $9,840,000, an increase of $823,000, or 9%, compared to the same quarter a year ago, due primarily to growth in the real estate loan portfolio. Loan growth was primarily attributable to favorable economic conditions in our markets. The loan portfolio grew over 12% from a year ago. The Company’s net interest margin was 3.36% for the quarter ended September 30, 2015 as compared to 3.32% for the quarter ended September 30, 2014.

A provision for loan losses of $38,000 was recognized in the third quarter of 2015 as compared to $55,000 in the third quarter of 2014. Net loan recoveries were $17,000 for the quarter ended September 30, 2015 compared to net loan charge-offs of $42,000 for the quarter ended September 30, 2014. Asset quality indicators for the Company, including impaired and past due loans, remain at favorable levels through September 30, 2015.

Noninterest income for the third quarter of 2015 totaled $1,950,000 as compared to $1,829,000 for the same period in 2014. The increase in noninterest income is primarily due to merchant and card fees. The increase in merchant and card fees was primarily due to the Acquisition. Exclusive of realized securities gains, noninterest income increased 5% in the third quarter of 2015 compared to the same period in 2014.

Noninterest expense for the third quarter of 2015 totaled $5,982,000 compared to $5,666,000 recorded in 2014, an increase of 6%, which was impacted by additional costs associated with the Acquisition. The increase in noninterest expense was primarily due to increases in salaries and benefits. The increase in salaries and benefits was mainly the result of additional payroll costs attributed to the Acquisition. Primarily as a result of the higher net interest income, the efficiency ratio for the third quarter of 2015 was 50.74%, compared to 52.24% in 2014.

Nine Months 2015 Results:

For the nine months ended September 30, 2015, net income for Ames National Corporation (the Company) totaled $11,100,000 or $1.19 per share, compared to $12,113,000 or $1.30 per share earned in 2014. The lower earnings were primarily related higher provision for loan losses, increased noninterest expense associated with the Acquisition, and the one-time gain on the sale of premises and equipment in 2014 of $1,242,000 with no corresponding gain in 2015.

Net interest income for the nine months ended September 30, 2015 totaled $29,073,000, an increase of $2,342,000, or 9%, compared to the same period a year ago, due primarily to growth in the real estate loan portfolio. The Company’s net interest margin was 3.32% for the nine months ended September 30, 2015 as compared to 3.29% for the nine months ended September 30, 2014.

A provision for loan losses of $1,037,000 was recognized in the nine months ended September 30, 2015 as compared to $130,000 in the same period a year ago. Net loan recoveries were $51,000 for the nine months ended September 30, 2015 compared to net loan charge-offs of $172,000 for the nine months ended September 30, 2014.

Noninterest income for the nine months ended September 30, 2015 totaled $6,123,000 as compared to $6,508,000 for the same period in 2014. The decrease in noninterest income is primarily due to the one-time gain of $1,242,000 on the sale of premises and equipment in 2014, with no corresponding gain in 2015. Exclusive of realized securities gains and gain on sale of premises and equipment, noninterest income increased 9% in the nine months ended September 30, 2015 compared to the same period in 2014, primarily due to increased gain on sale of loans held for sale and higher merchant and card fees.

Noninterest expense for the nine months ended September 30, 2015 totaled $18,813,000 compared to $16,405,000 recorded in 2014, an increase of 15%, which was significantly impacted by the Acquisition. The increase in noninterest expense was primarily due to increases in salaries and benefits and other real estate owned expenses. The increase in salaries and benefits was mainly the result of additional payroll costs attributed to the Acquisition. The increase in other real estate owned expenses was due primarily to impairment write downs of $615,000 in 2015. The efficiency ratio for the nine months ended September 30, 2015 was 53.45%, compared to 49.35% in 2014.

Balance Sheet Review:

As of September 30, 2015, total assets were $1,343,342,000, a $45,180,000 increase compared to September 30, 2014. The increase in assets was due primarily to a higher volume of loans, as previously discussed, offset in part by a decrease in securities available-for-sale.

Securities available-for-sale as of September 30, 2015 declined to $546,017,000 from $568,103,000 as of September 30, 2014. The decrease in securities available-for-sale is primarily due to the sale or pay downs of U.S. government mortgage-backed bonds and matured or called state and political subdivision bonds. These bond proceeds were largely utilized to fund loan demand.

Net loans as of September 30, 2015 increased 12% to $690,315,000 as compared to $615,701,000 as of September 30, 2014. The growth was primarily due to favorable lending environments in most of the affiliate bank communities. This growth is primarily reflected in all categories of loans, with the primary increases in the construction real estate portfolios, commercial real estate and commercial operating portfolios. Asset quality remained favorable as impaired loans, net of specific reserves, totaled $1,464,000, or 0.21% of gross loans as of September 30, 2015, compared to $2,259,000, or .36% of gross loans as of September 30, 2014. The allowance for loan losses on September 30, 2015 totaled $9,927,000, or 1.42% of gross loans, compared to $8,531,000 or 1.37% of gross loans as of September 30, 2014. The increase in the allowance for loan losses can be primarily attributed to loan growth.

Other real estate owned was $3,418,000 and $10,188,000 as of September 30, 2015 and 2014, respectively. The decrease in the other real estate owned was due to the sale of properties and impairment write downs. Due to potential changes in the real estate markets, it is at least reasonably possible that management’s assessments of fair value will change in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.

Deposits totaled $1,061,378,000 on September 30, 2015, a 2% increase from the $1,039,786,000 recorded at September 30, 2014.

Securities sold under agreements to repurchase totaled $52,066,000 on September 30, 2015, a 24% decrease from the $68,194,000 recorded at September 30, 2014. The decrease was primarily the result of the withdrawal of a portion of one customer’s securities sold under agreements to repurchase balances.

The Company’s stockholders’ equity represented 11.94% of total assets as of September 30, 2015 with all of the Company’s five affiliate banks considered well-capitalized as defined by federal capital regulations. Total stockholders’ equity was $160,405,000 as of September 30, 2015, and $153,970,000 as of September 30, 2014. The increase in stockholders’ equity was primarily the result of net income, offset by lower fair value on the securities available-for-sale which is reflected as a decrease in accumulated other comprehensive income and dividends.

Shareholder Information:

Return on average assets was 1.24% for the quarter ended September 30, 2015, compared to 1.20% for the same period in 2014. Return on average equity was 10.35% for the quarter ended September 30, 2015, compared to the 9.73% in 2014.

Return on average assets was 1.12% for the nine months ended September 30, 2015, compared to 1.29% for the same period in 2014. Return on average equity was 9.36% for the nine months ended September 30, 2015, compared to the 10.78% in 2014.

The Company’s stock, which is listed on the NASDAQ Capital Market under the symbol ATLO, closed at $22.93 on September 30, 2015. During the third quarter of 2015, the price ranged from $22.01 to $26.40.

On August 12, 2015, the Company declared a quarterly cash dividend on common stock, payable on November 13, 2015 to stockholders of record as of October 30, 2015, equal to $0.20 per share.

Ames National Corporation affiliate Iowa banks are First National Bank, Ames; Boone Bank & Trust Co., Boone; State Bank & Trust Co., Nevada; Reliance State Bank, Story City; and United Bank & Trust, Marshalltown.

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this News Release, including forward-looking statements concerning the Company’s future financial performance and asset quality.  Any forward-looking statement contained in this News Release is based on management’s current beliefs, assumptions and expectations of the Company’s future performance, taking into account all information currently available to management.  These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to management.  If a change occurs, the Company’s business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements.  The risks and uncertainties that may affect the actual results of the Company include, but are not limited to, the following:  economic conditions, particularly in the concentrated geographic area in which the Company and its affiliate banks operate; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company’s loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for loan losses dictated by new market conditions or regulatory requirements; fiscal and monetary policies of the U.S. government; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company’s business, including those discussed under the heading “Risk Factors” in the Company’s annual report on Form 10-K.  Management intends to identify forward-looking statements when using words such as “believe”, “expect”, “intend”, “anticipate”, “estimate”, “should”, “forecasting” or similar expressions.  Undue reliance should not be placed on these forward-looking statements.  The Company undertakes no obligation to revise or update such forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

AMES NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2015 and 2014

(unaudited)

ASSETS	2015		2014
Cash and due from banks	$	26,140,701	$	25,685,197
Interest bearing deposits in financial institutions		40,155,352		41,529,118
Securities available-for-sale		546,016,890		568,103,061
Loans receivable, net		690,315,150		615,701,355
Loans held for sale		916,322		447,423
Bank premises and equipment, net		16,828,000		15,984,355
Accrued income receivable		8,540,727		8,589,329
Other real estate owned		3,418,108		10,187,794
Deferred income taxes		1,978,434		1,662,407
Core deposit intangible, net		1,403,982		1,843,857
Goodwill		6,732,216		6,732,216
Other assets		896,580		1,695,913
Total assets	$	1,343,342,462	$	1,298,162,025
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Demand, noninterest bearing	$	187,652,406	$	175,656,528
NOW accounts		300,533,481		294,207,846
Savings and money market		350,538,471		315,650,511
Time, $250,000 and over		35,178,437		36,868,341
Other time		187,474,843		217,402,547
Total deposits		1,061,377,638		1,039,785,773
Securities sold under agreements to repurchase and federal funds purchased		52,065,563		68,194,012
Federal Home Loan Bank (FHLB) advances and other borrowings		63,253,477		29,986,152
Dividend payable		1,862,183		1,675,964
Accrued expenses and other liabilities		4,378,121		4,550,116
Total liabilities		1,182,936,982		1,144,192,017
STOCKHOLDERS' EQUITY
Common stock, $2 par value, authorized 18,000,000 shares; issued 9,310,913 shares as of September 30, 2015 and 9,432,915 shares as of September 30, 2014; outstanding 9,310,913 shares as of September 30, 2015 and 2014		18,621,826		18,865,830
Additional paid-in capital		20,878,728		22,651,222
Retained earnings		116,214,889		109,239,104
Accumulated other comprehensive income-net unrealized income on securities available-for-sale		4,690,037		5,230,350
Treasury stock, at cost; 122,002 shares as of September 30, 2014		-		(2,016,498	)
Total stockholders' equity		160,405,480		153,970,008
Total liabilities and stockholders' equity	$	1,343,342,462	$	1,298,162,025

AMES NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Interest income:
Loans	$	7,808,414		$	6,722,179		$	22,920,161		$	19,708,190
Securities
Taxable		1,506,702			1,792,258			4,639,398			5,407,157
Tax-exempt		1,433,537			1,538,531			4,399,623			4,857,733
Interest bearing deposits and federal funds sold		94,364			67,183			288,411			213,259
Total interest income		10,843,017			10,120,151			32,247,593			30,186,339
Interest expense:
Deposits		744,958			803,098			2,276,004			2,557,799
Other borrowed funds		257,791			299,434			898,565			897,781
Total interest expense		1,002,749			1,102,532			3,174,569			3,455,580
Net interest income		9,840,268			9,017,619			29,073,024			26,730,759
Provision for loan losses		37,797			55,145			1,036,610			130,020
Net interest income after provision for loan losses		9,802,471			8,962,474			28,036,414			26,600,739
Noninterest income:
Wealth Management Income		671,699			686,955			2,040,956			2,108,150
Service fees		445,706			426,588			1,285,063			1,194,862
Securities gains, net		111,622			79,501			608,926			214,582
Gain on sale of loans held for sale		206,072			224,554			705,370			473,733
Merchant and card fees		350,310			281,766			1,016,783			831,405
Gain (loss) on sale of premises and equipment, net		-			-			(1,132	)		1,242,209
Other noninterest income		164,568			129,326			467,217			443,505
Total noninterest income		1,949,977			1,828,690			6,123,183			6,508,446
Noninterest expense:
Salaries and employee benefits		3,882,484			3,513,375			11,418,395			10,235,563
Data processing		720,232			656,715			2,089,363			1,823,635
Occupancy expenses, net		414,868			366,258			1,408,464			1,185,066
FDIC insurance assessments		169,692			164,535			519,962			490,231
Professional fees		346,665			332,988			951,835			963,876
Business development		254,757			303,026			719,689			726,503
Other real estate owned expense, net		(104,380	)		(19,908	)		605,830			(198	)
Core deposit intangible amortization		103,251			76,959			326,249			203,707
Other operating expenses, net		194,639			272,474			773,430			776,248
Total noninterest expense		5,982,208			5,666,422			18,813,217			16,404,631
Income before income taxes		5,770,240			5,124,742			15,346,380			16,704,554
Income tax expense		1,670,389			1,393,256			4,246,790			4,592,054
Net income	$	4,099,851		$	3,731,486		$	11,099,590		$	12,112,500
Basic and diluted earnings per share	$	0.44		$	0.40		$	1.19		$	1.30
Declared dividends per share	$	0.20		$	0.18		$	0.60		$	0.54