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GLENS FALLS, N.Y., July 24, 2025 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or "the Company") announced financial results for the three-month period ended June 30, 2025. Reported net income for the second quarter of 2025 was $10.8 million and fully diluted earnings per share ("EPS") was $0.65, versus net income of $6.3 million and EPS of $0.38 for the first quarter of 2025.
The Board of Directors of Arrow declared a quarterly cash dividend of $0.29 per share, an increase of $0.01 or 3.6% from the prior quarter, payable August 25, 2025 to shareholders of record as of August 11, 2025.
This quarter's results include approximately $1.1 million ($0.05 per share) of non-core unification costs related to Arrow's system conversion and operational merger of its two banking subsidiaries, which were successfully completed in July 2025.
This Earnings Release and related commentary should be read in conjunction with the Company's July 24, 2025 Form 8-K and related Second Quarter 2025 Investor Presentation, which can also be found on Arrow's website: arrowfinancial.com/documents/investor-presentations.
Arrow President and CEO David S. DeMarco:
"We delivered strong second-quarter results, including return on average assets reaching 1.00%, with net interest margin and other key metrics approaching our strong historic levels. Simultaneously, we recently successfully completed our bank unification by consolidating our multi-bank systems and bank software applications into a single core banking platform, the last major milestone in our rebrand to Arrow Bank. This was an important step on our path toward improving customer experience and gaining operational efficiencies, further solidifying our position as a premier community bank under a strong, single recognizable brand. Our amazing team worked incredibly hard to make this transition as easy as possible for our customers, and I want to extend my deepest appreciation for their unwavering commitment and care. As we look ahead, Arrow is poised to advance our strategic priorities and continue to deliver value for our communities and shareholders."
Second-Quarter Highlights and Key Metrics
Income Statement
Three Months Ended | |||||
(Dollars in Thousands) | |||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
Interest and Dividend Income | $ 51,573 | $ 50,366 | $ 47,972 | ||
Interest Expense | 19,040 | 19,009 | 20,820 | ||
Net Interest Income | 32,533 | 31,357 | 27,152 | ||
Average Earning Assets(A) | 4,142,993 | 4,143,939 | 4,083,813 | ||
Average Interest-Bearing Liabilities | 3,191,906 | 3,184,196 | 3,127,417 | ||
Yield on Earning Assets(A) | 4.99 % | 4.93 % | 4.72 % | ||
Cost of Interest-Bearing Liabilities | 2.39 | 2.42 | 2.68 | ||
Net Interest Spread | 2.60 | 2.51 | 2.04 | ||
Net Interest Margin | 3.15 | 3.07 | 2.67 | ||
Net Interest Margin - FTE | 3.16 | 3.08 | 2.69 | ||
(A) IncludesNonaccrual Loans | |||||
Balance Sheet
Additional Commentary
About Arrow: Arrow Financial Corporation is a holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Arrow Bank, a full-service commercial bank, and Upstate Agency, LLC, a comprehensive insurance agency. Other subsidiaries include North Country Investment Advisers, Inc.
Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible book value, tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent net interest margin and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by Arrow from time to time are useful in evaluating Arrow's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."
Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with Arrow's Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the SEC.
1 FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.
2 The "loan exit rate" is the point in time interest rate in effect at the end of the reporting period.
3 Excludes both $3.2 million fair value hedge adjustment at June 30, 2025 and $3.3 million fair value hedge adjustment at March 31, 2025.
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
INTEREST AND DIVIDEND INCOME | ||||||||
Interest and Fees on Loans | $ 45,600 | $ 42,141 | $ 90,150 | $ 82,517 | ||||
Interest on Deposits at Banks | 1,622 | 2,185 | 3,243 | 4,632 | ||||
Interest and Dividends on Investment Securities: | ||||||||
Fully Taxable | 3,790 | 3,009 | 7,398 | 6,195 | ||||
Exempt from Federal Taxes | 561 | 637 | 1,148 | 1,305 | ||||
Total Interest and Dividend Income | 51,573 | 47,972 | 101,939 | 94,649 | ||||
INTEREST EXPENSE | ||||||||
Interest-Bearing Checking Accounts | 1,941 | 1,903 | 3,744 | 3,544 | ||||
Savings Deposits | 9,367 | 10,571 | 18,850 | 20,801 | ||||
Time Deposits over $250,000 | 1,726 | 1,869 | 3,537 | 3,842 | ||||
Other Time Deposits | 5,793 | 5,074 | 11,322 | 10,157 | ||||
Borrowings | — | 1,186 | 167 | 2,262 | ||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 171 | 170 | 340 | 341 | ||||
Interest on Financing Leases | 42 | 47 | 89 | 95 | ||||
Total Interest Expense | 19,040 | 20,820 | 38,049 | 41,042 | ||||
NET INTEREST INCOME | 32,533 | 27,152 | 63,890 | 53,607 | ||||
Provision for Credit Losses | 594 | 775 | 5,613 | 1,392 | ||||
NET INTEREST INCOME AFTER PROVISION FOR | 31,939 | 26,377 | 58,277 | 52,215 | ||||
NON-INTEREST INCOME | ||||||||
Income From Fiduciary Activities | 2,398 | 2,451 | 4,933 | 4,908 | ||||
Fees for Other Services to Customers | 2,787 | 2,706 | 5,387 | 5,249 | ||||
Insurance Commissions | 1,804 | 1,662 | 3,630 | 3,344 | ||||
Net (Loss) Gain on Securities | (40) | 54 | 277 | 71 | ||||
Net Gain on Sales of Loans | 213 | 5 | 314 | 9 | ||||
Other Operating Income | 447 | 978 | 907 | 2,133 | ||||
Total Non-Interest Income | 7,609 | 7,856 | 15,448 | 15,714 | ||||
NON-INTEREST EXPENSE | ||||||||
Salaries and Employee Benefits | 14,086 | 13,036 | 27,641 | 25,929 | ||||
Occupancy Expenses, Net | 1,952 | 1,774 | 3,974 | 3,545 | ||||
Technology and Equipment Expense | 5,589 | 4,734 | 10,676 | 9,554 | ||||
FDIC Assessments | 649 | 698 | 1,319 | 1,413 | ||||
Other Operating Expense | 3,376 | 3,076 | 8,087 | 6,889 | ||||
Total Non-Interest Expense | 25,652 | 23,318 | 51,697 | 47,330 | ||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 13,896 | 10,915 | 22,028 | 20,599 | ||||
Provision for Income Taxes | 3,091 | 2,311 | 4,913 | 4,335 | ||||
NET INCOME | $ 10,805 | $ 8,604 | $ 17,115 | $ 16,264 | ||||
Average Shares Outstanding: | ||||||||
Basic | 16,545 | 16,685 | 16,611 | 16,764 | ||||
Diluted | 16,551 | 16,709 | 16,618 | 16,789 | ||||
Per Common Share: | ||||||||
Basic Earnings | $ 0.65 | $ 0.52 | $ 1.03 | $ 0.97 | ||||
Diluted Earnings | 0.65 | 0.52 | 1.03 | 0.97 | ||||
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES | |||
June 30, | December 31, | ||
ASSETS | |||
Cash and Due From Banks | $ 40,976 | $ 27,422 | |
Interest-Bearing Deposits at Banks | 227,472 | 127,124 | |
Investment Securities: | |||
Available-for-Sale at Fair Value | 447,678 | 463,111 | |
Held-to-Maturity (Fair Value of $70,027 at June 30, 2025 and | 70,828 | 98,261 | |
Equity Securities | 5,332 | 5,055 | |
Other Investments | 4,557 | 4,353 | |
Loans | 3,424,754 | 3,394,541 | |
Allowance for Credit Losses | (34,191) | (33,598) | |
Net Loans | 3,390,563 | 3,360,943 | |
Premises and Equipment, Net | 60,701 | 59,717 | |
Goodwill | 23,789 | 23,789 | |
Other Intangible Assets, Net | 1,870 | 2,058 | |
Other Assets | 140,953 | 134,515 | |
Total Assets | $ 4,414,719 | $ 4,306,348 | |
LIABILITIES | |||
Noninterest-Bearing Deposits | 736,535 | 702,978 | |
Interest-Bearing Checking Accounts | 884,130 | 810,834 | |
Savings Deposits | 1,484,666 | 1,520,024 | |
Time Deposits over $250,000 | 179,254 | 191,962 | |
Other Time Deposits | 644,745 | 602,132 | |
Total Deposits | 3,929,330 | 3,827,930 | |
Borrowings | 8,600 | 8,600 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | |
Finance Leases | 4,969 | 5,005 | |
Other Liabilities | 43,314 | 43,912 | |
Total Liabilities | 4,006,213 | 3,905,447 | |
STOCKHOLDERS' EQUITY | |||
Preferred Stock, $1 Par Value and 1,000,000 Shares | — | — | |
Common Stock, $1 Par Value; 30,000,000 Shares Authorized | 22,067 | 22,067 | |
Additional Paid-in Capital | 413,880 | 413,476 | |
Retained Earnings | 84,970 | 77,215 | |
Accumulated Other Comprehensive Loss | (10,889) | (18,453) | |
Treasury Stock, at Cost (5,582,833 Shares at June 30, 2025 | (101,522) | (93,404) | |
Total Stockholders' Equity | 408,506 | 400,901 | |
Total Liabilities and Stockholders' Equity | $ 4,414,719 | $ 4,306,348 | |
Arrow Financial Corporation Selected Quarterly Information (Dollars In Thousands, Except Per Share Amounts - Unaudited) | |||||||||
Quarter Ended | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||
Net Income | $ 10,805 | $ 6,310 | $ 4,470 | $ 8,975 | $ 8,604 | ||||
Share and Per Share Data: | |||||||||
Period End Shares Outstanding | 16,484 | 16,670 | 16,743 | 16,734 | 16,723 | ||||
Basic Average Shares Outstanding | 16,545 | 16,665 | 16,718 | 16,710 | 16,685 | ||||
Diluted Average Shares Outstanding | 16,551 | 16,673 | 16,739 | 16,742 | 16,709 | ||||
Basic Earnings Per Share | $ 0.65 | $ 0.38 | $ 0.26 | $ 0.54 | $ 0.52 | ||||
Diluted Earnings Per Share | 0.65 | 0.38 | 0.27 | 0.53 | 0.52 | ||||
Cash Dividend Per Share | 0.28 | 0.28 | 0.28 | 0.27 | 0.27 | ||||
Selected Quarterly Average Balances: | |||||||||
Interest-Bearing Deposits at Banks | $ 145,473 | $ 146,023 | $ 233,469 | $ 154,937 | $ 159,336 | ||||
Investment Securities | 582,380 | 591,841 | 579,107 | 590,352 | 644,192 | ||||
Loans | 3,415,140 | 3,406,075 | 3,354,463 | 3,329,873 | 3,280,285 | ||||
Deposits | 3,849,093 | 3,825,124 | 3,847,691 | 3,672,128 | 3,678,957 | ||||
Other Borrowed Funds | 33,579 | 48,375 | 49,090 | 134,249 | 131,537 | ||||
Stockholders' Equity | 406,529 | 404,394 | 393,696 | 387,904 | 378,256 | ||||
Total Assets | 4,332,339 | 4,324,917 | 4,339,833 | 4,245,597 | 4,237,359 | ||||
Return on Average Assets, annualized | 1.00 % | 0.59 % | 0.41 % | 0.84 % | 0.82 % | ||||
Return on Average Equity, annualized | 10.66 % | 6.33 % | 4.52 % | 9.20 % | 9.15 % | ||||
Return on Average Tangible Equity, annualized 1 | 11.38 % | 6.76 % | 4.84 % | 9.79 % | 9.74 % | ||||
Average Earning Assets | $ 4,142,993 | $ 4,143,939 | $ 4,167,039 | $ 4,075,162 | $ 4,083,813 | ||||
Average Paying Liabilities | 3,191,906 | 3,184,196 | 3,185,215 | 3,085,066 | 3,127,417 | ||||
Interest Income | 51,573 | 50,366 | 50,901 | 49,443 | 47,972 | ||||
Tax-Equivalent Adjustment 2 | 148 | 155 | 157 | 149 | 163 | ||||
Interest Income, Tax-Equivalent 2 | 51,721 | 50,521 | 51,058 | 49,592 | 48,135 | ||||
Interest Expense | 19,040 | 19,009 | 21,214 | 21,005 | 20,820 | ||||
Net Interest Income | 32,533 | 31,357 | 29,687 | 28,438 | 27,152 | ||||
Net Interest Income, Tax-Equivalent 2 | 32,681 | 31,512 | 29,844 | 28,587 | 27,315 | ||||
Net Interest Margin, annualized | 3.15 % | 3.07 % | 2.83 % | 2.78 % | 2.67 % | ||||
Net Interest Margin, Tax-Equivalent, annualized 2 | 3.16 % | 3.08 % | 2.85 % | 2.79 % | 2.69 % | ||||
Efficiency Ratio Calculation:3 | |||||||||
Non-Interest Expense | $ 25,652 | $ 26,045 | $ 25,838 | $ 24,100 | $ 23,318 | ||||
Less: Intangible Asset Amortization | 80 | 81 | 89 | 78 | 40 | ||||
Net Non-Interest Expense | $ 25,572 | $ 25,964 | $ 25,749 | $ 24,022 | $ 23,278 | ||||
Net Interest Income, Tax-Equivalent | $ 32,681 | $ 31,512 | $ 29,844 | $ 28,587 | $ 27,315 | ||||
Non-Interest Income | 7,609 | 7,839 | 4,227 | 8,133 | 7,856 | ||||
Less: Net Gain(loss) on Securities | (40) | 317 | (3,072) | 94 | 54 | ||||
Net Gross Income | $ 40,330 | $ 39,034 | $ 37,143 | $ 36,626 | $ 35,117 | ||||
Efficiency Ratio | 63.41 % | 66.52 % | 69.32 % | 65.59 % | 66.29 % | ||||
Period-End Capital Information: | |||||||||
Total Stockholders' Equity (i.e. Book Value) | $ 408,506 | $ 404,409 | $ 400,901 | $ 393,311 | $ 383,018 | ||||
Book Value per Share | 24.78 | 24.26 | 23.94 | 23.50 | 22.90 | ||||
Goodwill and Other Intangible Assets, net | 25,659 | 25,743 | 25,847 | 25,979 | 22,800 | ||||
Tangible Book Value per Share 1 | 23.23 | 22.72 | 22.40 | 21.95 | 21.54 | ||||
Capital Ratios:4 | |||||||||
Tier 1 Leverage Ratio | 9.64 % | 9.61 % | 9.60 % | 9.78 % | 9.74 % | ||||
Common Equity Tier 1 Capital Ratio | 12.73 % | 12.59 % | 12.71 % | 12.77 % | 12.88 % | ||||
Tier 1 Risk-Based Capital Ratio | 13.37 % | 13.23 % | 13.35 % | 13.41 % | 13.53 % | ||||
Total Risk-Based Capital Ratio | 14.51 % | 14.48 % | 14.47 % | 14.46 % | 14.57 % | ||||
Arrow Financial Corporation Selected Quarterly Information - Continued (Dollars In Thousands, Except Per Share Amounts - Unaudited) | ||||||||||
Footnotes: | ||||||||||
1 | Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures, which Arrow believes provide investors with information that is useful in understanding its financial performance | |||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||
Total Stockholders' Equity (GAAP) | $ 408,506 | $ 404,409 | $ 400,901 | $ 393,311 | $ 383,018 | |||||
Less: Goodwill and Other Intangible assets, net | 25,659 | 25,743 | 25,847 | 25,979 | 22,800 | |||||
Tangible Equity (Non-GAAP) | $ 382,847 | $ 378,666 | $ 375,054 | $ 367,332 | $ 360,218 | |||||
Period End Shares Outstanding | 16,484 | 16,670 | 16,743 | 16,734 | 16,723 | |||||
Tangible Book Value per Share (Non-GAAP) | $ 23.23 | $ 22.72 | $ 22.40 | $ 21.95 | $ 21.54 | |||||
Net Income | 10,805 | 6,310 | 4,470 | 8,975 | 8,604 | |||||
Return on Tangible Equity (Net Income/Tangible Equity - Annualized) | 11.38 % | 6.76 % | 4.84 % | 9.79 % | 9.74 % | |||||
2 | Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of annualized tax-equivalent net interest income to average earning assets. his is also a non-GAAP financial measure, which Arrow believes provides investors with information that is useful in understanding its financial performance | |||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||
Interest Income (GAAP) | $ 51,573 | $ 50,366 | $ 50,901 | $ 49,443 | $ 47,972 | |||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 148 | 155 | 157 | 149 | 163 | |||||
Interest Income - Tax Equivalent (Non-GAAP) | $ 51,721 | $ 50,521 | $ 51,058 | $ 49,592 | $ 48,135 | |||||
Net Interest Income (GAAP) | $ 32,533 | $ 31,357 | $ 29,687 | $ 28,438 | $ 27,152 | |||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 148 | 155 | 157 | 149 | 163 | |||||
Net Interest Income - Tax Equivalent (Non-GAAP) | $ 32,681 | $ 31,512 | $ 29,844 | $ 28,587 | $ 27,315 | |||||
Average Earning Assets | $ 4,142,993 | $ 4,143,939 | $ 4,167,039 | $ 4,075,162 | $ 4,083,813 | |||||
Net Interest Margin (Non-GAAP)* | 3.16 % | 3.08 % | 2.85 % | 2.79 % | 2.69 % | |||||
3 | Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of non-interest expense to net gross income (which equals tax-equivalent net interest income plus non-interest income, as adjusted) | |||||||||
4 | For the current quarter, all of the regulatory capital ratios as well as the Total Risk-Weighted Assets are calculated in accordance with bank regulatory capital rules. The June 30, 2025 CET1 ratio listed in the tables (i.e., 12.73%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%). Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report | |||||||||
6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||
Total Risk Weighted Assets | $ 3,121,451 | $ 3,143,547 | $ 3,126,364 | $ 3,110,178 | $ 3,072,922 | |||||
Common Equity Tier 1 Capital | 397,432 | 395,900 | 397,285 | 397,122 | 395,691 | |||||
Common Equity Tier 1 Ratio | 12.73 % | 12.59 % | 12.71 % | 12.77 % | 12.88 % | |||||
* Quarterly ratios have been annualized | ||||||||||
Arrow Financial Corporation | |||||||||||
Quarter Ended: | June 30, 2025 | June 30, 2024 | |||||||||
Interest | Rate | Interest | Rate | ||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||
Interest-Bearing Deposits at Banks | $ 145,473 | $ 1,622 | 4.47 % | $ 159,336 | $ 2,185 | 5.52 % | |||||
Investment Securities: | |||||||||||
Fully Taxable | 496,614 | 3,790 | 3.06 | 530,869 | 3,009 | 2.28 | |||||
Exempt from Federal Taxes | 85,766 | 561 | 2.62 | 113,323 | 637 | 2.26 | |||||
Loans (1) | 3,415,140 | 45,600 | 5.36 | 3,280,285 | 42,141 | 5.17 | |||||
Total Earning Assets (1) | 4,142,993 | 51,573 | 4.99 | 4,083,813 | 47,972 | 4.72 | |||||
Allowance for Credit Losses | (35,238) | (31,459) | |||||||||
Cash and Due From Banks | 29,267 | 28,611 | |||||||||
Other Assets | 195,317 | 156,394 | |||||||||
Total Assets | $ 4,332,339 | $ 4,237,359 | |||||||||
Deposits: | |||||||||||
Interest-Bearing Checking Accounts | $ 845,041 | 1,941 | 0.92 | $ 832,087 | 1,903 | 0.92 | |||||
Savings Deposits | 1,494,930 | 9,367 | 2.51 | 1,487,062 | 10,571 | 2.86 | |||||
Time Deposits of $250,000 or More | 179,980 | 1,726 | 3.85 | 172,655 | 1,869 | 4.35 | |||||
Other Time Deposits | 638,376 | 5,793 | 3.64 | 504,076 | 5,074 | 4.05 | |||||
Total Interest-Bearing Deposits | 3,158,327 | 18,827 | 2.39 | 2,995,880 | 19,417 | 2.61 | |||||
Borrowings | 8,601 | — | — | 106,502 | 1,186 | 4.48 | |||||
Junior Subordinated Obligations Issued to | 20,000 | 171 | 3.43 | 20,000 | 170 | 3.42 | |||||
Finance Leases | 4,978 | 42 | 3.38 | 5,035 | 47 | 3.75 | |||||
Total Interest-Bearing Liabilities | 3,191,906 | 19,040 | 2.39 | 3,127,417 | 20,820 | 2.68 | |||||
Noninterest-Bearing Deposits | 690,766 | 683,077 | |||||||||
Other Liabilities | 43,138 | 48,609 | |||||||||
Total Liabilities | 3,925,810 | 3,859,103 | |||||||||
Stockholders' Equity | 406,529 | 378,256 | |||||||||
Total Liabilities and Stockholders' Equity | $ 4,332,339 | $ 4,237,359 | |||||||||
Net Interest Income | $ 32,533 | $ 27,152 | |||||||||
Net Interest Spread | 2.60 % | 2.04 % | |||||||||
Net Interest Margin | 3.15 % | 2.67 % | |||||||||
(1) | Includes Nonaccrual Loans. |
Arrow Financial Corporation | |||||||||||
Quarter Ended: | June 30, 2025 | March 31, 2025 | |||||||||
Interest | Rate | Interest | Rate | ||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||
Interest-Bearing Deposits at Banks | $ 145,473 | $ 1,622 | 4.47 % | $ 146,023 | $ 1,621 | 4.50 % | |||||
Investment Securities: | |||||||||||
Fully Taxable | 496,614 | 3,790 | 3.06 | 499,903 | 3,608 | 2.93 | |||||
Exempt from Federal Taxes | 85,766 | 561 | 2.62 | 91,938 | 587 | 2.59 | |||||
Loans (1) | 3,415,140 | 45,600 | 5.36 | 3,406,075 | 44,550 | 5.30 | |||||
Total Earning Assets (1) | 4,142,993 | 51,573 | 4.99 | 4,143,939 | 50,366 | 4.93 | |||||
Allowance for Credit Losses | (35,238) | (33,691) | |||||||||
Cash and Due From Banks | 29,267 | 31,515 | |||||||||
Other Assets | 195,317 | 183,154 | |||||||||
Total Assets | $ 4,332,339 | $ 4,324,917 | |||||||||
Deposits: | |||||||||||
Interest-Bearing Checking Accounts | $ 845,041 | 1,941 | 0.92 | $ 840,571 | 1,803 | 0.87 | |||||
Savings Deposits | 1,494,930 | 9,367 | 2.51 | 1,515,961 | 9,483 | 2.54 | |||||
Time Deposits of $250,000 or More | 179,980 | 1,726 | 3.85 | 186,159 | 1,811 | 3.95 | |||||
Other Time Deposits | 638,376 | 5,793 | 3.64 | 593,130 | 5,529 | 3.78 | |||||
Total Interest-Bearing Deposits | 3,158,327 | 18,827 | 2.39 | 3,135,821 | 18,626 | 2.41 | |||||
Borrowings | 8,601 | — | — | 23,378 | 167 | 2.90 | |||||
Junior Subordinated Obligations Issued to | 20,000 | 171 | 3.43 | 20,000 | 169 | 3.43 | |||||
Finance Leases | 4,978 | 42 | 3.38 | 4,997 | 47 | 3.81 | |||||
Total Interest-Bearing Liabilities | 3,191,906 | 19,040 | 2.39 | 3,184,196 | 19,009 | 2.42 | |||||
Noninterest-Bearing Deposits | 690,766 | 689,303 | |||||||||
Other Liabilities | 43,138 | 47,024 | |||||||||
Total Liabilities | 3,925,810 | 3,920,523 | |||||||||
Stockholders' Equity | 406,529 | 404,394 | |||||||||
Total Liabilities and Stockholders' Equity | $ 4,332,339 | $ 4,324,917 | |||||||||
Net Interest Income | $ 32,533 | $ 31,357 | |||||||||
Net Interest Spread | 2.60 % | 2.51 % | |||||||||
Net Interest Margin | 3.15 % | 3.07 % | |||||||||
(1) Includes Nonaccrual Loans. |
Arrow Financial Corporation | |||||||||||
Year to Date Period Ended: | June 30, 2025 | June 30, 2024 | |||||||||
Interest | Rate | Interest | Rate | ||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||
Interest-Bearing Deposits at Banks | $ 145,746 | $ 3,243 | 4.49 % | $ 168,894 | $ 4,632 | 5.52 % | |||||
Investment Securities: | |||||||||||
Fully Taxable | 498,250 | 7,398 | 2.99 | 540,704 | 6,195 | 2.30 | |||||
Exempt from Federal Taxes | 88,835 | 1,148 | 2.61 | 116,945 | 1,305 | 2.24 | |||||
Loans (1) | 3,410,632 | 90,150 | 5.33 | 3,258,063 | 82,517 | 5.09 | |||||
Total Earning Assets (1) | 4,143,463 | 101,939 | 4.96 | 4,084,606 | 94,649 | 4.66 | |||||
Allowance for Credit Losses | (34,469) | (31,437) | |||||||||
Cash and Due From Banks | 30,385 | 29,207 | |||||||||
Other Assets | 189,269 | 159,046 | |||||||||
Total Assets | $ 4,328,648 | $ 4,241,422 | |||||||||
Deposits: | |||||||||||
Interest-Bearing Checking Accounts | $ 842,818 | 3,744 | 0.90 | $ 831,502 | 3,544 | 0.86 | |||||
Savings Deposits | 1,505,387 | 18,850 | 2.53 | 1,484,031 | 20,801 | 2.82 | |||||
Time Deposits of $250,000 or More | 183,053 | 3,537 | 3.90 | 174,991 | 3,842 | 4.42 | |||||
Other Time Deposits | 615,878 | 11,322 | 3.71 | 500,444 | 10,157 | 4.08 | |||||
Total Interest-Bearing Deposits | 3,147,136 | 37,453 | 2.40 | 2,990,968 | 38,344 | 2.58 | |||||
Borrowings | 15,949 | 167 | 2.11 | 101,743 | 2,262 | 4.47 | |||||
Junior Subordinated Obligations Issued to | 20,000 | 340 | 3.43 | 20,000 | 341 | 3.43 | |||||
Finance Leases | 4,987 | 89 | 3.60 | 5,042 | 95 | 3.79 | |||||
Total Interest-Bearing Liabilities | 3,188,072 | 38,049 | 2.41 | 3,117,753 | 41,042 | 2.65 | |||||
Noninterest-Bearing Deposits | 690,039 | 695,171 | |||||||||
Other Liabilities | 45,069 | 49,648 | |||||||||
Total Liabilities | 3,923,180 | 3,862,572 | |||||||||
Stockholders' Equity | 405,468 | 378,850 | |||||||||
Total Liabilities and Stockholders' Equity | $ 4,328,648 | $ 4,241,422 | |||||||||
Net Interest Income | $ 63,890 | $ 53,607 | |||||||||
Net Interest Spread | 2.55 % | 2.01 % | |||||||||
Net Interest Margin | 3.11 % | 2.64 % | |||||||||
(1) Includes Nonaccrual Loans | |||||||||||
Arrow Financial Corporation Consolidated Financial Information (Dollars in Thousands - Unaudited) | |||
Quarter Ended: | 6/30/2025 | 12/31/2024 | |
Loan Portfolio | |||
Commercial Loans | $ 162,203 | $ 158,991 | |
Commercial Real Estate Loans | 808,166 | 796,365 | |
Subtotal Commercial Loan Portfolio | 970,369 | 955,356 | |
Consumer Loans | 1,109,272 | 1,118,981 | |
Residential Real Estate Loans | 1,345,113 | 1,320,204 | |
Total Loans | $ 3,424,754 | $ 3,394,541 | |
Allowance for Credit Losses | |||
Allowance for Credit Losses, Beginning of Quarter | $ 37,771 | $ 31,262 | |
Loans Charged-off | (5,062) | (1,333) | |
Less Recoveries of Loans Previously Charged-off | 888 | 815 | |
Net Loans Charged-off | (4,174) | (518) | |
Provision for Credit Losses | 594 | 2,854 | |
Allowance for Credit Losses, End of Quarter | $ 34,191 | $ 33,598 | |
Nonperforming Assets | |||
Nonaccrual Loans | $ 5,550 | $ 20,621 | |
Loans Past Due 90 or More Days and Accruing | 855 | 398 | |
Loans Restructured and in Compliance with Modified Terms | 12 | 20 | |
Total Nonperforming Loans | 6,417 | 21,039 | |
Repossessed Assets | 590 | 382 | |
Other Real Estate Owned | — | 76 | |
Total Nonperforming Assets | $ 7,007 | $ 21,497 | |
Key Asset Quality Ratios | |||
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized | 0.49 % | 0.06 % | |
Provision for Credit Losses to Average Loans, Quarter-to-date Annualized | 0.07 % | 0.34 % | |
Allowance for Credit Losses to Period-End Loans | 1.00 % | 0.99 % | |
Allowance for Credit Losses to Period-End Nonperforming Loans | 532.82 % | 159.69 % | |
Nonperforming Loans to Period-End Loans | 0.19 % | 0.62 % | |
Nonperforming Assets to Period-End Assets | 0.16 % | 0.50 % | |
Year-to-Date Period Ended: | 6/30/2025 | 12/31/2024 | |
Allowance for Credit Losses | |||
Allowance for Credit Losses, Beginning of Year | $ 33,598 | $ 31,265 | |
Loans Charged-off | (6,613) | (5,895) | |
Less Recoveries of Loans Previously Charged-off | 1,593 | 3,048 | |
Net Loans Charged-off | (5,020) | (2,847) | |
Provision for Credit Losses | 5,613 | 5,180 | |
Allowance for Credit Losses, End of Period | $ 34,191 | $ 33,598 | |
Key Asset Quality Ratios | |||
Net Loans Charged-off to Average Loans, Annualized | 0.30 % | 0.09 % | |
Provision for Loan Losses to Average Loans, Annualized | 0.33 % | 0.16 % | |
SOURCE Arrow Financial Corporation
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