ATLO

MKT CAP $289.3MP/E 12.7DIV YIELD 2.69%FCF YIELD 7.26%REV TTM —NET INCOME $23M +67.8%NET CASH $88.9M52W 20.44 – 32.82SEC XBRL · TTM TO Invalid Date

How ATLO rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

80%

of sentences unchanged

Added

new sentences

Dropped

sentences removed

Length

+450

words, now 7,203

New in FY2025

In particular, the national economy continues to face challenges due to inflationary pressures that begin building during late 2021 and, although improved, have persisted through 2025, resulting in continuing upward pressure on consumer and wholesale prices.
In response, the FOMC initiated a series of increases in the short-term federal funds interest rate, beginning in 2022 and continuing through 2023, in an effort to dampen economic activity and bring the rate of inflation back to the FOMC’s target range of two to three percent.
Although the FOMC began reducing the federal funds rate in late 2024 and during 2025, interest rates continue to remain at relatively high levels on a historic basis, as the FOMC has now paused its reductions and adopted a “data-driven” approach under which future cuts will be dependent on favorable data regarding inflation and labor market conditions.
The continuation of elevated interest rates has the potential to overly reduce economic activity and, potentially, tip the domestic economy into a recessionary period of slower or negative growth.
As noted above, a period of depressed economic activity could adversely affect our business, financial condition and results of operations by, among other things, increasing the likelihood of borrower defaults on loan obligations, reducing collateral values and weakening the demand for the Banks’ loan and deposit products.
Continuing inflationary pressures may affect the Company ’ s interest rates, credit loss expenses and general operating expenses.
Consumer inflation as measured by the Consumer Price Index for All Urban Consumers (“CPI”) has increased 2.7% and 2.9% for the years ended December 31, 2025 and 2024, respectively.
Although inflationary pressures in the economy have now moderated from the higher rates of inflation experienced during 2021 through 2023, elevated levels of inflation can create upward pressure on the cost of hiring, training and retaining employees, other general operating expenses and interest rates.
If higher rates of inflation persist, our challenge will be keeping wages competitive and maintaining general operating expenses at their current levels, while also managing our credit loss expense which may be negatively impacted by our customers’ ability to service their debt obligations.
Developments 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 condition.
There continues to be significant uncertainty about the future relationship between the United States and its foreign trading partners, including with respect to trade policies, treaties, trade agreements, government regulations, sanctions, tariffs, and application thereof.
For example, in April 2025, the U.S. government began imposing tariffs intended to address trade deficits and inconsistent economic treatment of importation between the U.S. and other countries.
In response, a number of countries, including China, have announced retaliatory tariffs against certain imports from the U.S., among other measures.
Although we are continuing to evaluate the impact of these evolving developments on our customer base, we cannot provide any assurance about the ultimate outcome or impact of these developments or other changes in trade policies, including the imposition of new or increased tariffs between the U.S. and other countries.
Furthermore, changes to trade policies, retaliatory measures, or prolonged uncertainty in trade relationships could increase the cost of, and reduce demand for, our products and services, as well as negatively affecting our customers’ ability to service debt, both of which could adversely impact our business.
In addition, political tensions as a result of trade policies could reduce trade volume, investment and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets, which could adversely affect our business, results of operations and financial condition.
Commercial real estate loans were a significant portion of our total loan portfolio as of December 31, 2025.
A significant portion of our loan portfolio consists of loans to borrowers who are directly or indirectly affected by the health of the Iowa agricultural economy, which has recently been under stress due to low commodity and livestock prices, higher input costs caused by inflation and potential losses of foreign markets due to disruptions in trade relationships.
As of December 31, 2025, the fair value of our securities portfolio, consisting primarily of fixed income debt securities, was approximately $656.0 million.
The fair value of the securities portfolio has a net unrealized loss of $24.2 million as of December 31, 2025, resulting primarily from the negative impact of increased interest rates on the fair value of the portfolio.
Use of artificial intelligence may result in reputational harm or liability, or could otherwise adversely affect the Company ’ s business.
Artificial intelligence, including generative artificial intelligence, is or may be integrated into our products and services or those developed by our third-party partners.
The development and use of AI presents potential risks and challenges to our business and may require significant additional investments in infrastructure, personnel and training.
There can be no assurance that the usage of AI will enhance our products or services or be beneficial to our business or customers, including our efficiency or profitability.
As with many developing technologies, artificial intelligence presents risks and challenges that could affect its further development, adoption and use, and therefore our business.
Artificial intelligence algorithms may be flawed - for example datasets may contain biased information or otherwise be insufficient - and inappropriate or controversial data practices could impair the acceptance of artificial intelligence solutions and result in burdensome new regulations.
If the analyses that products integrating artificial intelligence assist in producing for us or our third-party partners are deficient, biased or inaccurate, we could be subject to competitive harm, potential legal liability and brand or reputational harm.
The use of artificial intelligence may also present ethical issues.
If we or our third-party partners offer artificial intelligence enabled products that are controversial because of their purported or real impact on human rights, privacy, or other issues, we may experience competitive harm, potential legal liability and brand or reputational harm.
In addition, we expect that governments will continue to assess and implement new laws and regulations concerning the use of artificial intelligence, which may affect or impair the usability or efficiency of our products and services and those developed by our third-party partners.
Goodwill and intangible assets were $13.2 million as of December 31, 2025.

Gone since FY2024

In particular, the national economy is facing challenges due to inflationary pressures that began building during late 2021 and has persisted through 2024, resulting in significant upward pressure on consumer and wholesale prices.
In response, the FOMC has initiated a series of increases in the short-term federal funds interest rate in an effort to dampen economic activity and bring the rate of inflation back to the FOMC’s target range of two to three percent.
These rate increases have the potential to overly reduce economic activity and tip the domestic economy into a recessionary period of slower or negative growth.
As noted above, a period of depressed economic activity could adversely affect our business, financial condition and results of operation by, among other things, increasing the likelihood of borrower defaults on loan obligations, reducing collateral values and weakening demand for the Banks’ loan and deposit services.
Higher inflation may affect the Company ’ s interest rates, credit loss expenses and general operating expenses.
Consumer inflation, as measured by the Consumer Price Index for All Urban Consumers (“CPI”) has increased 2.9% and 3.4% for the years ended December 31, 2024 and 2023, respectively.
Elevated levels of inflation create upward pressure on the cost of hiring, training, and retaining employees, other general operating expense and interest rates.
Our challenge will be keeping wages competitive and maintaining general operating expenses at their current levels, while balancing a potential decrease in our net interest income due to the greater sensitivity to the repricing of our interest-bearing liabilities than our interest-earning assets in the short-term.
Our credit loss expenses may be negatively impacted by our borrowers' ability to service their debt if inflation is prolonged.
The trade policies of the new presidential administration are evolving and could lead to disruptions in major trade relationships that could negatively impact our customers.
The new presidential administration has stated its intention to scrutinize the United States’ trade relationships with its economic partners, indicated an interest in renegotiating trade agreements, and begun to implement tariffs with some of the United States’ major trading partners, all of which could lead to a disruption of those trading relationships and trade wars.
These statements and actions by the administration have signaled a change in the United States’ economic policies, and it is not clear which policies will be implemented and what effect these policies could have on the local, national and global economy.
Tariffs, retaliatory tariffs imposed in response by trading partners and a potential trade war resulting from those actions could affect the economy and stock prices in the United States and could impact the costs of goods paid by customers, all of which could affect our deposit levels and concentration, the demand for loans and other products and services and the ability of our customers to repay outstanding loans, which could adversely affect our financial condition and the results of operations.
Commercial real estate loans were a significant portion of our total loan portfolio as of December 31, 2024.
A significant portion of our loan portfolio consists of loans to borrowers who are directly or indirectly affected by the health of the Iowa agricultural economy, which has recently been under stress due to low commodity and livestock prices and higher input costs caused by inflation.
As of December 31, 2024, the fair value of our securities portfolio, consisting primarily of fixed income debt securities, was approximately $648.5 million.
The fair value of the securities portfolio has a net unrealized loss of $52.0 million as of December 31, 2024, resulting primarily from the negative impact of increased interest rates on the fair value of the portfolio.
Goodwill and intangible assets were $13.5 million as of December 31, 2024.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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