US Market News
2月前
Arrow Reports 1st Quarter Net Income of $13.5 Million, or $0.82 per Share, and Declares 2nd Quarter Dividend of $0.30 per ShareApril 30, 2026 8:00 AM
PR Newswire (US)
GLENS FALLS, N.Y., April 30, 2026 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or the "Company") announced financial results for the three-month period ended March 31, 2026. Reported net income for the first quarter of 2026 was $13.5 million and fully diluted earnings per share ("EPS") was $0.82, versus net income of $14.0 million and EPS of $0.85 for the fourth quarter of 2025.
The Board of Directors of Arrow declared a quarterly cash dividend of $0.30 per share; payable May 26, 2026 to shareholders of record as of May 12, 2026.This quarter's results include approximately $790 thousand ($0.03 per share) of non-core merger expenses related to the announced acquisition of Adirondack Bancorp, Inc. based in Utica, New York. Excluding the merger expenses, Arrow achieved record operating results of $0.85 for the first quarter of 2026. Pending regulatory approvals, the transaction is expected to close early in the third quarter of 2026 and will add approximately $950 million in assets and 19 new branch locations.This Earnings Release and related commentary should be read in conjunction with the Company's April 30, 2026 Form 8-K and related First Quarter 2026 Investor Presentation, which can also be found on Arrow's website: arrowfinancial.com/documents/investor-presentations. Arrow President and CEO David S. DeMarco:"As we celebrate our 175th anniversary, building on the strong year-end momentum, the Arrow team delivered exceptional financial results for the first quarter of 2026. We achieved strong net interest margin expansion as well as a return on average assets close to 1.30% on an operating basis. Credit performance was even better with non-performing loans dipping to 13 basis points. During the first quarter, we also announced the acquisition of Adirondack Bank, which is expected to close in the third quarter of 2026. We look forward to expanding our market with this high-quality, low-cost deposit franchise, adding approximately $950 million to our balance sheet. We expect the transaction to provide significant EPS accretion in 2027 and beyond. Arrow is well positioned to continue to deliver strong results for its shareholders while continuing to execute on its strategic initiatives to build a premier banking franchise for its customers and the communities it serves."First-Quarter Highlights and Key MetricsNet Income of $13.5 million (EPS of $0.82); $0.85 adjusted for merger-related expenses ("MRE")1Efficiency ratio of 59.89%; 58.13% excluding MRE1Net Interest Income of $36.1 millionNet Interest Margin improved to 3.47% (3.48% FTE2), from 3.24% (3.25% FTE) in the prior quarterReturn on Average Assets (ROA) of 1.23%; 1.29% adjusted for MRE1Strong credit metrics: annualized charge-offs of 10bps and non-performing loans of 13bpsLoan-to-Deposit ratio of 85.7%Cost of retail deposits3 decreased by 11bps to 1.62% from the prior quarterIncome StatementNet Income: Net income for the first quarter of 2026 was $13.5 million, decreasing from $14.0 million in the fourth quarter of 2025.Compared to the prior quarter, net income decreased due to an increase in income tax expense of $1.1 million and an increase in non-interest expense of $1.1 million offset by an increase in net interest income of $1.0 million and an increase in non-interest income of $0.4 million.Net Interest Income: Net interest income for the first quarter of 2026 was $36.1 million, increasing 2.8% from the fourth quarter of 2025.Total interest and dividend income was $53.8 million for the first quarter of 2026, a decrease from $54.6 million in the fourth quarter of 2025. Interest expense for the first quarter of 2026 was $17.7 million, a decrease from $19.5 million in the fourth quarter of 2025.Net Interest Margin: Net interest margin, on an FTE basis, for the first quarter of 2026 increased to 3.48%, compared to 3.25% for the fourth quarter of 2025. The increase in net interest margin compared to the fourth quarter of 2025 was primarily the result of continued yield expansion on earning assets combined with the reduced cost of interest-bearing liabilities.
Three Months Ended
(Dollars in Thousands)
March 31, 2026
December 31, 2025
March 31, 2025Interest and Dividend Income$ 53,794
$ 54,610
$ 50,366Interest Expense17,664
19,467
19,009Net Interest Income36,130
35,143
31,357Average Earning Assets(A)4,222,574
4,302,305
4,143,939Average Interest-Bearing Liabilities3,244,709
3,280,856
3,184,196
Average Yield on Earning Assets(A)5.17 %
5.04 %
4.93 %Average Cost of Interest-Bearing Liabilities2.21
2.35
2.42Net Interest Spread2.96
2.69
2.51Net Interest Margin3.47
3.24
3.07Net Interest Margin - FTE3.48
3.25
3.08
(A) Includes Nonaccrual Loans.
Provision for Credit Losses: For the first quarter of 2026, the provision for credit losses was $548 thousand compared to $846 thousand in the fourth quarter of 2025, primarily driven by low net charge-offs and lower loan growth in the first quarter of 2026.Non-Interest Income: Non-interest income for the three months ended March 31, 2026, was $8.6 million, an increase from $8.3 million in the fourth quarter of 2025. Revenue related to wealth management was consistent with the prior quarter, while insurance commissions and interchange fees improved in the first quarter from the linked quarter. The first quarter of 2026 included a positive valuation adjustment related to an equity position.Non-Interest Expense: Non-interest expense for the first quarter of 2026 was $26.9 million, an increase from $25.8 million in the fourth quarter of 2025. The first quarter of 2026 included approximately $800 thousand of expenses related to the announced acquisition of Adirondack Bancorp, Inc. which is expected to close early in the third quarter of 2026.Provision for Income Taxes: The provision for income taxes and effective tax rate were $3.9 million and 22.3%, respectively for the first quarter of 2026, and $2.7 million and 22.2%, respectively for the fourth quarter of 2025. The effective tax rate does not reflect the anticipated implementation of certain tax strategies that are expected to lower the tax rate for the rest of 2026.Balance SheetTotal Assets: Total assets were $4.5 billion at March 31, 2026, an increase of $76.2 million, or 1.7%, as compared to December 31, 2025. For the first quarter of 2026, the overall change in the balance sheet was primarily attributable to the seasonal surge in municipal deposits. Investments: Total investments were $594.6 million as of March 31, 2026, an increase of $21.8 million, or 3.8%, compared to December 31, 2025. The increase from December 31, 2025 was driven primarily by $46 million of additional investments, partially offset by paydowns and maturities. There were no credit quality issues related to the investment portfolio.Loans: Total loans were $3.4 billion as of March 31, 2026. Loans outstanding decreased in the first quarter of 2026 by $14.1 million. Loan growth was negatively impacted by severe winter weather, which slowed indirect auto and residential loan originations. Volume is expected to rebound in the second quarter. Please see the loan detail included in the Consolidated Financial Information table on page 12.Allowance for Credit Losses: The allowance for credit losses was $34.1 million as of March 31, 2026, which represented 0.99% of loans outstanding, as compared to $34.3 million, or 0.99% of loans outstanding, at December 31, 2025. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.10% for the three-month period ended March 31, 2026, as compared to 0.08% for the three-month period ended December 31, 2025. Nonperforming assets were $5.1 million as of March 31, 2026, representing 0.11% of period-end assets, a decrease from $8.7 million, or 0.20%, at December 31, 2025. Nonperforming assets decreased to the payoff of a $2.6 million nonperforming loan in the first quarter.Deposits: At March 31, 2026, deposit balances were $4.0 billion, an increase of $74.5 million from December 31, 2025. The change from December 31, 2025 was primarily attributable to the seasonality of municipal deposits. Please refer to page 6 for further details related to deposits.Capital: Total stockholders' equity was $440.1 million at March 31, 2026, an increase of $8.3 million, or 1.9%, from December 31, 2025. The increase from December 31, 2025 was primarily attributable to net income of $13.5 million offset by other comprehensive loss of $0.7 million and dividends of $5.0 million and other stock-based activity. Arrow's regulatory capital ratios remain strong. As of March 31, 2026, Arrow's Common Equity Tier 1 Capital Ratio was 13.30% and Total Risk-Based Capital Ratio was 15.04%. The capital ratios of Arrow and its subsidiary bank continued to exceed the "well capitalized" regulatory standards. Regulatory capital ratios are preliminary, subject to finalization as part of the current quarter Call Report.Additional CommentaryBauerFinancial Ratings: Arrow Bank National Association ("Arrow Bank") received a 5-Star Superior rating from BauerFinancial, Inc., the nation's premier bank rating firm. Arrow Bank has earned this designation for 76 consecutive quarters, securing its prominent position as an "Exceptional Performance Bank."——————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.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 earnings 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 can sometimes be identified by Arrow's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." 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 because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, geopolitical events, difficulties in managing the Arrow's growth, competition, changes in law or the regulatory environment, risks relating to the announced merger with Adirondack Bancorp, Inc. and changes in general business and economic trends. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This earnings release should be read in conjunction with Arrow's Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC.____________________1EPS, efficiency ratio and ROA excluding merger-related expenses are non-GAAP measures. See reconciliation on Note 5 to the Selected Quarterly Information2FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 2 to the Selected Quarterly Information.3Retail deposits exclude wholesale funding sourcesARROW FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(In Thousands, Except Per Share Amounts - Unaudited)
Three Months Ended
March 31,
2026
December 31,
2025
March 31,
2025INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans
$ 47,126
$ 47,087
$ 44,550Interest on Deposits at Banks
1,675
2,598
1,621Interest and Dividends on Investment Securities:
Fully Taxable
4,529
4,500
3,608Exempt from Federal Taxes
464
425
587Total Interest and Dividend Income
53,794
54,610
50,366INTEREST EXPENSE
Interest-Bearing Checking Accounts
2,100
2,117
1,803Savings Deposits
8,716
9,722
9,483Time Deposits over $250,000
1,196
1,562
1,811Other Time Deposits
5,436
5,846
5,529Borrowings
—
—
167Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
169
173
169Interest on Financing Leases
47
47
47Total Interest Expense
17,664
19,467
19,009NET INTEREST INCOME
36,130
35,143
31,357Provision for Credit Losses
548
846
5,019NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
35,582
34,297
26,338NON-INTEREST INCOME
Income From Fiduciary Activities
2,713
2,771
2,535Fees for Other Services to Customers
2,727
2,854
2,600Insurance Commissions
2,113
2,050
1,826Net Gain (Loss) on Securities
145
(127)
317Net Gain on Sales of Loans
290
246
101Other Operating Income
640
474
460Total Non-Interest Income
8,628
8,268
7,839NON-INTEREST EXPENSE
Salaries and Employee Benefits
14,922
14,309
13,555Occupancy Expenses, Net
2,459
1,881
2,022Technology and Equipment Expense
5,052
5,152
5,087FDIC Assessments
585
563
670Other Operating Expense
3,847
3,899
4,711Total Non-Interest Expense
26,865
25,804
26,045INCOME BEFORE PROVISION FOR INCOME TAXES
17,345
16,761
8,132Provision for Income Taxes
3,860
2,748
1,822NET INCOME
$ 13,485
$ 14,013
$ 6,310Average Shares Outstanding:
Basic
16,382
16,390
16,665Diluted
16,403
16,413
16,673Per Common Share:
Basic Earnings
$ 0.82
$ 0.85
$ 0.38Diluted Earnings
0.82
0.85
0.38ARROW FINANCIAL CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In Thousands, Except Share and Per Share Amounts - Unaudited)
March 31,
2026
December 31,
2025ASSETS
Cash and Due From Banks$ 29,102
$ 29,132Interest-Earning Deposits at Banks256,504
185,051Investment Securities:
Available-for-Sale at Fair Value518,803
495,868Held-to-Maturity (Fair Value of $65,321 at March 31, 2026
and $66,569 at December 31, 2025)65,646
66,975Equity Securities5,742
5,597Other Investments4,375
4,372Loans3,438,966
3,453,093Allowance for Credit Losses(34,055)
(34,322)Net Loans3,404,911
3,418,771Premises and Equipment, Net59,561
59,433Goodwill23,789
23,789Other Intangible Assets, Net1,692
1,741Other Assets151,894
155,133Total Assets$ 4,522,019
$ 4,445,862LIABILITIES
Noninterest-Bearing Deposits721,734
722,374Interest-Bearing Checking Accounts898,168
862,192Savings Deposits1,618,309
1,557,638Time Deposits over $250,000140,899
155,802Other Time Deposits634,829
641,463Total Deposits4,013,939
3,939,469Borrowings4,265
4,265Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts20,000
20,000Finance Leases4,908
4,929Other Liabilities38,764
45,347Total Liabilities4,081,876
4,014,010STOCKHOLDERS' EQUITY
Preferred Stock, $1 Par Value; 1,000,000 Shares Authorized
at March 31, 2026 and December 31, 2025 (none issued)—
—Common Stock, $1 Par Value: 30,000,000 Shares Authorized;
22,066,559 Shares Issued; 16,526,929 and 16,445,342
Shares Outstanding at March 31, 2026 and December 31,
2025)22,067
22,067Additional Paid-in Capital414,431
414,506Retained Earnings110,804
102,271Accumulated Other Comprehensive Loss(4,764)
(4,037)Treasury Stock, at Cost (5,539,630 Shares at March 31, 2026
and 5,621,217 Shares at December 31, 2025)(102,395)
(102,955)Total Stockholders' Equity440,143
431,852Total Liabilities and Stockholders' Equity$ 4,522,019
$ 4,445,862Arrow Financial CorporationSelected Quarterly Information(Dollars In Thousands, Except Per Share Amounts - Unaudited)Quarter Ended3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025Net Income$ 13,485
$ 14,013
$ 12,825
$ 10,805
$ 6,310
Share and Per Share Data:
Period End Shares Outstanding16,527
16,445
16,438
16,484
16,670Basic Average Shares Outstanding16,382
16,390
16,402
16,545
16,665Diluted Average Shares Outstanding16,403
16,413
16,406
16,551
16,673Basic Earnings Per Share$ 0.82
$ 0.85
$ 0.77
$ 0.65
$ 0.38Diluted Earnings Per Share0.82
0.85
0.77
0.65
0.38Cash Dividend Per Share0.30
0.29
0.29
0.28
0.28
Selected Quarterly Average Balances:
Interest-Earning Deposits at Banks$ 183,252
$ 260,806
$ 200,251
$ 145,473
$ 146,023 Investment Securities598,817
596,994
574,080
582,380
591,841 Loans3,440,505
3,444,505
3,424,784
3,415,140
3,406,075 Deposits3,928,761
4,002,221
3,913,721
3,849,093
3,825,124 Other Borrowed Funds29,181
29,203
30,539
33,579
48,375 Stockholders' Equity438,846
425,042
413,058
406,529
404,394 Total Assets4,439,833
4,499,195
4,399,815
4,332,339
4,324,917Return on Average Assets, annualized1.23 %
1.24 %
1.16 %
1.00 %
0.59 %Return on Average Equity, annualized12.46 %
13.08 %
12.32 %
10.66 %
6.33 %Return on Average Tangible Equity, annualized 113.23 %
13.92 %
13.13 %
11.38 %
6.76 %Average Earning Assets$ 4,222,574
$ 4,302,305
$ 4,199,115
$ 4,142,993
$ 4,143,939Average Paying Liabilities3,244,709
3,280,856
3,193,789
3,191,906
3,184,196Interest Income53,794
54,610
53,598
51,573
50,366Tax-Equivalent Adjustment 2123
114
121
148
155Interest Income, Tax-Equivalent 253,917
54,724
53,719
51,721
50,521Interest Expense17,664
19,467
19,467
19,040
19,009Net Interest Income36,130
35,143
34,131
32,533
31,357Net Interest Income, Tax-Equivalent 236,253
35,258
34,252
32,681
31,512Net Interest Margin, annualized3.47 %
3.24 %
3.22 %
3.15 %
3.07 %Net Interest Margin, Tax-Equivalent, annualized 23.48 %
3.25 %
3.24 %
3.16 %
3.08 %
Efficiency Ratio Calculation: 3
Non-Interest Expense$ 26,865
$ 25,804
$ 25,433
$ 25,652
$ 26,045Less: Intangible Asset Amortization72
74
76
80
81Net Non-Interest Expense$ 26,793
$ 25,730
$ 25,357
$ 25,572
$ 25,964Net Interest Income, Tax-Equivalent$ 36,253
$ 35,257
$ 34,252
$ 32,681
$ 31,512Non-Interest Income8,628
8,268
8,716
7,609
7,839Less: Net Gain (Loss) on Securities145
(127)
392
(40)
317Net Gross Income$ 44,736
$ 43,652
$ 42,576
$ 40,330
$ 39,034Efficiency Ratio59.89 %
58.94 %
59.56 %
63.41 %
66.52 %
Period-End Capital Information:
Total Stockholders' Equity (i.e. Book Value)$ 440,143
$ 431,852
$ 417,687
$ 408,506
$ 404,409Book Value per Share 26.63
26.26
25.41
24.78
24.26Goodwill and Other Intangible Assets, net25,481
25,530
25,594
25,659
25,743Tangible Book Value per Share 125.09
24.71
23.85
23.23
22.72
Capital Ratios:4
Tier 1 Leverage Ratio10.02 %
9.68 %
9.66 %
9.64 %
9.61 %Common Equity Tier 1 Capital Ratio 13.30 %
13.01 %
13.07 %
12.73 %
12.59 %Tier 1 Risk-Based Capital Ratio13.93 %
13.64 %
13.71 %
13.37 %
13.23 %Total Risk-Based Capital Ratio15.04 %
14.76 %
14.86 %
14.51 %
14.48 %
Arrow Financial Corporation
Selected Quarterly Information
(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.
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Total Stockholders' Equity (GAAP)$ 440,143
$ 431,852
$ 417,687
$ 408,506
$ 404,409
Less: Goodwill and Other Intangible assets, net25,481
25,530
25,594
25,659
25,743
Tangible Equity (Non-GAAP)$ 414,662
$ 406,322
$ 392,093
$ 382,847
$ 378,666
Period End Shares Outstanding16,527
16,445
16,438
16,484
16,670
Tangible Book Value per Share (Non-GAAP)$ 25.09
$ 24.71
$ 23.85
$ 23.23
$ 22.72
Net Income13,485
14,013
12,825
10,805
6,310
Return on Tangible Equity (Net Income/Tangible
Equity - Annualized)13.23 %
13.92 %
13.13 %
11.38 %
6.76 %
2.Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure, which Arrow believes provides investors with information that is useful in understanding its financial performance.
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Interest Income (GAAP)$ 53,794
$ 54,610
$ 53,598
$ 51,573
$ 50,366
Add: Tax-Equivalent adjustment (Non-GAAP)123
114
121
148
155
Interest Income - Tax Equivalent (Non-GAAP)$ 53,917
$ 54,724
$ 53,719
$ 51,721
$ 50,521
Net Interest Income (GAAP)$ 36,130
$ 35,143
$ 34,131
$ 32,533
$ 31,357
Add: Tax-Equivalent adjustment (Non-GAAP)123
114
121
148
155
Net Interest Income - Tax Equivalent (Non-GAAP)$ 36,253
$ 35,257
$ 34,252
$ 32,681
$ 31,512
Average Earning Assets$ 4,222,574
$ 4,302,305
$ 4,199,115
$ 4,142,993
$ 4,143,939
Net Interest Margin (Non-GAAP)*3.48 %
3.25 %
3.24 %
3.16 %
3.08 %
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 March 31, 2026 CET1 ratio listed in the tables (i.e., 13.30%) 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.
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Total Risk Weighted Assets$ 3,180,782
$ 3,182,240
$ 3,095,225
$ 3,121,451
$ 3,143,547
Common Equity Tier 1 Capital423,139
414,050
404,426
397,432
395,900
Common Equity Tier 1 Ratio13.30 %
13.01 %
13.07 %
12.73 %
12.59 %
5.Non-GAAP Financial Measure Reconciliation: Net Income and Net Non-Interest Expense adjusted for non-core expenses. Non-core expenses include merger-related expenses, which are related to the announced acquisition of Adirondack Bancorp, Inc., and unification expenses, which are related to the system conversion and operational merger of the Company's two banking subsidiaries during the year ended December 31, 2025. EPS, efficiency ratio, and ROA are presented on an adjusted basis to reflect these exclusions. These are non-GAAP financial measures, which Arrow believes provides investors with information that is useful in understanding its financial performance.
3/31/2026
12/31/2025
9/30/2025
6/30/2025
3/31/2025
Net Income$ 13,485
$ 14,013
$ 12,825
$ 10,805
$ 6,310
Non-Core Expenses:
Merger-Related Expenses790
—
—
—
—
Unification Expenses—
—
543
1,134
600
Less: Tax Benefit(174)
—
(119)
(249)
(132)
Net Non-Core Expenses (Non-GAAP)616
—
424
885
468
Core Net Income (Non-GAAP)$ 14,101
$ 14,013
$ 13,249
$ 11,690
$ 6,778
Net Non-Interest Expense$ 26,793
$ 25,730
$ 25,357
$ 25,572
$ 25,964
Non-Core Expenses:
Merger-Related Expenses790
—
—
—
—
Unification Expenses—
—
543
1,134
600
Core Net Non-Interest Expense (Non-GAAP)$ 26,003
$ 25,730
$ 24,814
$ 24,438
$ 25,364
Core Earnings Per Share (Non-GAAP)$ 0.85
$ 0.85
$ 0.80
$ 0.70
$ 0.41
Core Return on Average Assets (Non-GAAP)1.29 %
1.24 %
1.20 %
1.08 %
0.64 %
Core Efficiency Ratio (Non-GAAP)58.13 %
58.94 %
58.28 %
60.60 %
64.98 %
* Quarterly ratios have been annualized.
Arrow Financial CorporationAverage Consolidated Balance Sheets and Net Interest Income Analysis(Dollars in Thousands - Unaudited)
Quarter Ended:March 31, 2026
March 31, 2025
Interest
Rate
Interest
Rate
Average
Income/
Earned/
Average
Income/
Earned/
Balance
Expense
Paid
Balance
Expense
PaidInterest-Earning Deposits at Banks$ 183,252
$ 1,675
3.71 %
$ 146,023
$ 1,621
4.50 %Investment Securities:
Fully Taxable536,293
4,529
3.42
499,903
3,608
2.93Exempt from Federal Taxes62,524
464
3.01
91,938
587
2.59Loans (1)3,440,505
47,126
5.56
3,406,075
44,550
5.30Total Earning Assets (1)4,222,574
53,794
5.17
4,143,939
50,366
4.93Allowance for Credit Losses(34,370)
(33,691)
Cash and Due From Banks30,253
31,515
Other Assets221,376
183,154
Total Assets$ 4,439,833
$ 4,324,917
Deposits:
Interest-Bearing Checking Accounts$ 859,054
2,100
0.99
$ 840,571
1,803
0.87Savings Deposits1,570,598
8,716
2.25
1,515,961
9,483
2.54Time Deposits of $250,000 or More147,425
1,196
3.29
186,159
1,811
3.95Other Time Deposits638,451
5,436
3.45
593,130
5,529
3.78Total Interest-Bearing Deposits3,215,528
17,448
2.20
3,135,821
18,626
2.41Borrowings4,265
—
—
23,378
167
2.90Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts20,000
169
3.43
20,000
169
3.43Finance Leases4,916
47
3.88
4,997
47
3.81Total Interest-Bearing Liabilities3,244,709
17,664
2.21
3,184,196
19,009
2.42Noninterest-Bearing Deposits713,233
689,303
Other Liabilities43,045
47,024
Total Liabilities4,000,987
3,920,523
Stockholders' Equity438,846
404,394
Total Liabilities and Stockholders' Equity$ 4,439,833
$ 4,324,917
Net Interest Income
$ 36,130
$ 31,357
Net Interest Spread
2.96 %
2.51 %Net Interest Margin
3.47 %
3.07 %(1) Includes Nonaccrual Loans.Arrow Financial CorporationAverage Consolidated Balance Sheets and Net Interest Income Analysis(Dollars in Thousands - Unaudited)
Quarter Ended:March 31, 2026
December 31, 2025
Interest
Rate
Interest
Rate
Average
Income/
Earned/
Average
Income/
Earned/
Balance
Expense
Paid
Balance
Expense
PaidInterest-Earning Deposits at Banks$ 183,252
$ 1,675
3.71 %
$ 260,806
$ 2,598
3.95 %Investment Securities:
Fully Taxable536,293
4,529
3.42
537,088
4,500
3.32Exempt from Federal Taxes62,524
464
3.01
59,906
425
2.81Loans (1)3,440,505
47,126
5.56
3,444,505
47,087
5.42Total Earning Assets (1)4,222,574
53,794
5.17
4,302,305
54,610
5.04Allowance for Credit Losses(34,370)
(34,288)
Cash and Due From Banks30,253
25,827
Other Assets221,376
205,351
Total Assets$ 4,439,833
$ 4,499,195
Deposits:
Interest-Bearing Checking Accounts$ 859,054
2,100
0.99
$ 850,602
2,117
0.99Savings Deposits1,570,598
8,716
2.25
1,584,844
9,721
2.43Time Deposits of $250,000 or More147,425
1,196
3.29
173,996
1,562
3.56Other Time Deposits638,451
5,436
3.45
642,211
5,847
3.61Total Interest-Bearing Deposits3,215,528
17,448
2.20
3,251,653
19,247
2.35Borrowings4,265
—
—
4,266
—
—Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts20,000
169
3.43
20,000
173
3.43Finance Leases4,916
47
3.88
4,937
47
3.78Total Interest-Bearing Liabilities3,244,709
17,664
2.21
3,280,856
19,467
2.35Noninterest-Bearing Deposits713,233
750,568
Other Liabilities43,045
42,729
Total Liabilities4,000,987
4,074,153
Stockholders' Equity438,846
425,042
Total Liabilities and Stockholders' Equity$ 4,439,833
$ 4,499,195
Net Interest Income
$ 36,130
$ 35,143
Net Interest Spread
2.96 %
2.69 %Net Interest Margin
3.47 %
3.24 %(1) Includes Nonaccrual Loans.Arrow Financial CorporationConsolidated Financial Information(Dollars in Thousands - Unaudited)Quarter Ended:3/31/2026
12/31/2025Loan Portfolio
Commercial Loans$ 169,599
$ 165,729Commercial Real Estate Loans811,770
818,259 Subtotal Commercial Loan Portfolio981,369
983,988Consumer Loans1,071,543
1,076,007Residential Real Estate Loans1,386,054
1,393,098Total Loans$ 3,438,966
$ 3,453,093Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Quarter$ 34,322
$ 34,176Loans Charged-off(1,574)
(1,477)Less Recoveries of Loans Previously Charged-off759
777Net Loans Charged-off(815)
(700)Provision for Credit Losses548
846Allowance for Credit Losses, End of Quarter$ 34,055
$ 34,322Nonperforming Assets
Nonaccrual Loans$ 3,802
$ 6,415Loans Past Due 90 or More Days and Accruing621
2,040Loans Restructured and in Compliance with Modified Terms—
—Total Nonperforming Loans4,423
8,455Repossessed Assets657
280Other Real Estate Owned—
—Total Nonperforming Assets$ 5,080
$ 8,735
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized0.10 %
0.08 %Provision for Credit Losses to Average Loans, Quarter-to-date Annualized0.06 %
0.10 %Allowance for Credit Losses to Period-End Loans0.99 %
0.99 %Allowance for Credit Losses to Period-End Nonperforming Loans769.95 %
405.94 %Nonperforming Loans to Period-End Loans0.13 %
0.24 %Nonperforming Assets to Period-End Assets0.11 %
0.20 %
View original content to download multimedia:https://www.prnewswire.com/news-releases/arrow-reports-1st-quarter-net-income-of-13-5-million-or-0-82-per-share-and-declares-2nd-quarter-dividend-of-0-30-per-share-302758152.htmlSOURCE Arrow Financial Corporation
Original: Arrow Reports 1st Quarter Net Income of $13.5 Million, or $0.82 per Share, and Declares 2nd Quarter Dividend of $0.30 per Share
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