                                                                    Exhibit 99.1




NEWS RELEASE                                 Contact:         Daniel L. Krieger,
                                                              President
                                                              (515) 232-6251
April 22, 2002



                       AMES NATIONAL CORPORATION ANNOUNCES
                           FIRST QUARTER EARNINGS AND
                          THE CHARTER OF A DE NOVO BANK

         First quarter 2002  earnings  were $.94 per share  compared to $.83 per
share for the same quarter in 2001. The  improvement in this quarter's  earnings
can be attributed to lower interest  expense.  Federal Home Loan Bank borrowings
have been paid in full  compared to $12 million owed one year ago.  Total equity
increased to $95 million.

         Deposits  increased 2% while loans  decreased  12% at  affiliate  banks
compared  to first  quarter  2001.  The  decrease  in loans is the result of the
slowdown in the economy and the strong competition in loan pricing. Total assets
rose 1% to $646 million compared to $640 million a year ago.

         Ames National  Corporation  has made  application  to the Office of the
Comptroller of the Currency to charter a de novo national bank in  Marshalltown,
Iowa.  Provided all  necessary  regulatory  approvals  are  received  within the
expected time frames, the opening of business is anticipated to be in the second
quarter of this year.

     Ames National  Corporation  affiliate banks are First National Bank,  Ames,
Boone Bank & Trust Co., Boone,  State Bank & Trust Co., Nevada and Randall-Story
State Bank, Story City.



