Arrow Reports 4th Quarter Net Income of $4.5 Million or $0.27 per Share and $29.7 Million or $1.77 per Share for 2024. Declares first quarter dividend of $0.28 per share.
AROW
GLENS FALLS, N.Y., Jan. 30, 2025 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow") reported net income of $4.5 million, and fully diluted earnings per share ("EPS") of $0.27 for the fourth quarter of 2024, versus $7.7 million and EPS of $0.46, for the same period in 2023. For the year ended 2024, net income totaled $29.7 million, with EPS of $1.77, versus $30.1 million, and EPS of $1.77, for the same period in 2023.
The Board of Directors of Arrow declared a quarterly cash dividend of $0.28 per share payable February 24, 2025 to shareholders of record as of February 10, 2025.
The reported results included several non-core items that impacted the fourth quarter and the 2024 full year results. As previously disclosed in our Form 8-K filed December 26, 2024, the fourth quarter included the following pre-tax non-core items:
Prior to the fourth quarter, Arrow recognized the following pre-tax non-core/non-recurring items:
This Earnings Release and related commentary should be read in conjunction with our Form 8-K filed January 30, 2025 and related Fourth Quarter 2024 Investor Presentation, which can also be found on our website: arrowfinancial.com/documents/investor-presentations.
Arrow President and CEO David S. DeMarco:
"Arrow just completed a transformational year. We completed the unification of our two subsidiary banks under one brand, Arrow Bank. Our exceptional team continues to serve our customers and communities in the same way they have come to expect from us. In addition, we also acquired a bank branch in Whitehall, New York as well the assets of a local insurance agency. We made significant contributions to the communities we serve, both financially and through volunteer efforts, continuing our commitment to giving back. In 2024, we delivered for our shareholders, growing loans by mid-single digits, expanding our net interest margin and actively managing our balance sheet, positioning the Bank for increased profitability in 2025."
Fourth-Quarter Highlights and Key Metrics
Select 2024 Highlights and Key Metrics
Income Statement
Twelve Months Ended
(dollars in thousands)
December 31, 2024
December 31, 2023
Interest and Dividend Income
$ 194,993
$ 162,564
Interest Expense
83,261
57,732
Net Interest Income
111,732
104,832
Average Earning Assets(1)
4,102,954
3,948,708
Average Interest-Bearing Liabilities
3,126,495
2,903,925
Yield on Earning Assets(1)
4.75 %
4.12 %
Cost of Interest-Bearing Liabilities
2.66
1.99
Net Interest Spread
2.09
2.13
Net Interest Margin
2.72
2.65
FTE Net Interest Margin
2.74
2.67
(1) Includes Nonaccrual Loans.
Balance Sheet
Additional Commentary
_______________________________
1
FTE (fully taxable equivalent basis) net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.
2
Excludes both $2.2 million fair value hedge adjustment at December 31, 2024 and $6.5 million fair value hedge adjustment at September 30, 2024.
3
Excludes both $2.2 million fair value hedge adjustment at December 31, 2024 and $5.8 million fair value hedge adjustment at December 31, 2023.
4
FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.
5
FTE net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.
6
Excludes both $2.2 million fair value hedge adjustment at December 31, 2024, $6.5 million fair value hedge adjustment at September 30, 2024 and $5.8 million fair value hedge adjustment at December 31, 2023.
——————
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 National Association, 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, 2023, and other filings with the SEC.
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts - Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans
$ 44,703
$ 38,813
$ 171,342
$ 142,016
Interest on Deposits at Banks
2,880
1,873
9,615
5,831
Interest and Dividends on Investment Securities:
Fully Taxable
2,728
2,941
11,579
11,764
Exempt from Federal Taxes
590
697
2,457
2,953
Total Interest and Dividend Income
50,901
44,324
194,993
162,564
INTEREST EXPENSE
Interest-Bearing Checking Accounts
1,932
1,317
7,442
3,663
Savings Deposits
11,144
10,513
42,850
34,343
Time Deposits over $250,000
1,815
1,807
7,460
4,966
Other Time Deposits
5,906
3,406
20,997
7,127
Borrowings
198
1,447
3,637
6,756
Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts
172
173
686
686
Interest on Financing Leases
47
48
189
191
Total Interest Expense
21,214
18,711
83,261
57,732
NET INTEREST INCOME
29,687
25,613
111,732
104,832
Provision for Credit Losses
2,854
525
5,180
3,381
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES
26,833
25,088
106,552
101,451
NONINTEREST INCOME
Income From Fiduciary Activities
2,615
2,363
9,952
9,444
Fees for Other Services to Customers
2,762
2,725
10,892
10,798
Insurance Commissions
1,848
1,723
7,147
6,498
Net (Loss) Gain on Securities
(3,072)
122
(2,907)
(92)
Net Gain on Sales of Loans
74
7
209
32
Other Operating Income
—
544
2,781
2,437
Total Noninterest Income
4,227
7,484
28,074
29,117
NONINTEREST EXPENSE
Salaries and Employee Benefits
13,332
11,693
52,707
47,667
Occupancy Expenses, Net
1,870
1,826
7,169
6,554
Technology and Equipment Expense
5,119
4,458
19,365
17,608
FDIC Assessments
664
572
2,775
2,050
Other Operating Expense
4,853
4,641
15,252
19,169
Total Noninterest Expense
25,838
23,190
97,268
93,048
INCOME BEFORE PROVISION FOR INCOME TAXES
5,222
9,382
37,358
37,520
Provision for Income Taxes
752
1,659
7,649
7,445
NET INCOME
$ 4,470
$ 7,723
$ 29,709
$ 30,075
Average Shares Outstanding:
Basic
16,718
17,002
16,739
17,037
Diluted
16,739
17,004
16,745
17,037
Per Common Share:
Basic Earnings
$ 0.27
$ 0.46
$ 1.78
$ 1.77
Diluted Earnings
0.27
0.46
1.77
1.77
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts - Unaudited)
December 31, 2024
December 31, 2023
ASSETS
Cash and Due From Banks
$ 27,422
$ 36,755
Interest-Bearing Deposits at Banks
127,124
105,781
Investment Securities:
Available-for-Sale
463,111
497,769
Held-to-Maturity (Approximate Fair Value of $96,586 at
December 31, 2024, and $128,837 at December 31, 2023)
98,261
131,395
Equity Securities
5,055
1,925
Other Investments
4,353
5,049
Loans
3,394,541
3,212,908
Allowance for Credit Losses
(33,598)
(31,265)
Net Loans
3,360,943
3,181,643
Premises and Equipment, Net
59,717
59,642
Goodwill
23,789
21,873
Other Intangible Assets, Net
2,058
1,110
Other Assets
134,515
126,926
Total Assets
$ 4,306,348
$ 4,169,868
LIABILITIES
Noninterest-Bearing Deposits
$ 702,978
$ 758,425
Interest-Bearing Checking Accounts
810,834
799,785
Savings Deposits
1,520,024
1,466,280
Time Deposits over $250,000
191,962
179,301
Other Time Deposits
602,132
483,775
Total Deposits
3,827,930
3,687,566
Borrowings
8,600
26,500
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
20,000
20,000
Finance Leases
5,005
5,066
Other Liabilities
43,912
50,964
Total Liabilities
3,905,447
3,790,096
STOCKHOLDERS' EQUITY
Preferred Stock, $1 Par Value, 1,000,000 Shares Authorized
—
—
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued at December 31, 2024 and December 31, 2023)
22,067
22,067
Additional Paid-in Capital
413,476
412,551
Retained Earnings
77,215
65,792
Accumulated Other Comprehensive (Loss) Income
(18,453)
(33,416)
Treasury Stock, at Cost (5,323,638 Shares at December 31, 2024, and 5,124,073 Shares at December 31, 2023)
(93,404)
(87,222)
Total Stockholders' Equity
400,901
379,772
Total Liabilities and Stockholders' Equity
$ 4,306,348
$ 4,169,868
Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts - Unaudited)
Quarter Ended
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Net Income
$ 4,470
$ 8,975
$ 8,604
$ 7,660
$ 7,723
Transactions in Net Income (Net of Tax):
Net Changes in Fair Value of Equity Investments
(26)
69
39
13
90
Share and Per Share Data:
Period End Shares Outstanding
16,743
16,734
16,723
16,710
16,942
Basic Average Shares Outstanding
16,718
16,710
16,685
16,865
17,002
Diluted Average Shares Outstanding
16,739
16,742
16,709
16,867
17,004
Basic Earnings Per Share
$ 0.27
$ 0.54
$ 0.52
$ 0.45
$ 0.46
Diluted Earnings Per Share
0.27
0.53
0.52
0.45
0.46
Cash Dividend Per Share
0.280
0.270
0.270
0.270
0.270
Selected Quarterly Average Balances:
Interest-Bearing Deposits at Banks
$ 233,469
$ 154,937
$ 159,336
$ 178,452
$ 136,026
Investment Securities
579,107
590,352
644,192
671,105
713,144
Loans
3,354,463
3,329,873
3,280,285
3,235,841
3,170,262
Deposits
3,847,691
3,672,128
3,678,957
3,693,325
3,593,949
Other Borrowed Funds
49,090
134,249
131,537
122,033
149,507
Shareholders' Equity
393,696
387,904
378,256
379,446
363,753
Total Assets
4,339,833
4,245,597
4,237,359
4,245,484
4,159,313
Return on Average Assets, annualized
0.41 %
0.84 %
0.82 %
0.73 %
0.74 %
Return on Average Equity, annualized
4.52 %
9.20 %
9.15 %
8.12 %
8.42 %
Return on Average Tangible Equity, annualized 1
4.84 %
9.79 %
9.74 %
8.64 %
8.99 %
Average Earning Assets
4,167,039
4,075,162
4,083,813
4,085,398
4,019,432
Average Paying Liabilities
3,185,215
3,085,066
3,127,417
3,108,093
2,985,717
Interest Income
50,901
49,443
47,972
46,677
44,324
Tax-Equivalent Adjustment 2
157
149
163
176
184
Interest Income, Tax-Equivalent 2
51,058
49,592
48,135
46,853
44,508
Interest Expense
21,214
21,005
20,820
20,222
18,711
Net Interest Income
29,687
28,438
27,152
26,455
25,613
Net Interest Income, Tax-Equivalent 2
29,844
28,587
27,315
26,631
25,797
Net Interest Margin, annualized
2.83 %
2.78 %
2.67 %
2.60 %
2.53 %
Net Interest Margin, Tax-Equivalent, annualized 2
2.85 %
2.79 %
2.69 %
2.62 %
2.55 %
Efficiency Ratio Calculation: 3
Noninterest Expense
$ 25,838
$ 24,100
$ 23,318
$ 24,012
$ 23,190
Less: Intangible Asset Amortization
89
78
40
41
43
Net Noninterest Expense
$ 25,749
$ 24,022
$ 23,278
$ 23,971
$ 23,147
Net Interest Income, Tax-Equivalent
$ 29,844
$ 28,587
$ 27,315
$ 26,631
$ 25,797
Noninterest Income
4,227
8,133
7,856
7,858
7,484
Less: Net Gain (Loss) on Securities
(3,038)
94
54
17
122
Net Gross Income
$ 37,109
$ 36,626
$ 35,117
$ 34,472
$ 33,159
Efficiency Ratio
69.39 %
65.59 %
66.29 %
69.54 %
69.81 %
Period-End Capital Information:
Total Stockholders' Equity (i.e. Book Value)
$ 400,901
$ 393,311
$ 383,018
$ 377,986
$ 379,772
Book Value per Share
23.94
23.50
22.90
22.62
22.42
Goodwill and Other Intangible Assets, net
25,847
25,979
22,800
22,891
22,983
Tangible Book Value per Share 1
22.40
21.95
21.54
21.25
21.06
Capital Ratios:4
Tier 1 Leverage Ratio
9.60 %
9.78 %
9.74 %
9.63 %
9.84 %
Common Equity Tier 1 Capital Ratio
12.71 %
12.77 %
12.88 %
12.84 %
13.00 %
Tier 1 Risk-Based Capital Ratio
13.35 %
13.41 %
13.53 %
13.50 %
13.66 %
Total Risk-Based Capital Ratio
14.47 %
14.46 %
14.57 %
14.57 %
14.74 %
Assets Under Trust Admin. & Investment Mgmt.
$ 2,036,393
$ 1,944,239
$ 1,848,349
$ 1,829,266
$ 1,763,194
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 Average Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance.
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Total Stockholders' Equity (GAAP)
$ 400,901
$ 393,311
$ 383,018
$ 377,986
$ 379,772
Less: Goodwill and Other Intangible assets, net
25,847
25,979
22,800
22,891
22,983
Tangible Equity (Non-GAAP)
$ 375,054
$ 367,332
$ 360,218
$ 355,095
$ 356,789
Period End Shares Outstanding
16,743
16,734
16,723
16,710
16,942
Tangible Book Value per Share (Non-GAAP)
$ 22.40
$ 21.95
$ 21.54
$ 21.25
$ 21.06
Net Income
4,470
8,975
8,604
7,660
7,723
Return on Average Tangible Equity (Net Income/Average Tangible Equity - Annualized)
4.84 %
9.79 %
9.74 %
8.64 %
8.99 %
2.
Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance.
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Interest Income (GAAP)
$ 50,901
$ 49,443
$ 47,972
$ 46,677
$ 44,324
Add: Tax Equivalent Adjustment (Non-GAAP)
157
149
163
176
184
Interest Income - Tax Equivalent (Non-GAAP)
$ 51,058
$ 49,592
$ 48,135
$ 46,853
$ 44,508
Net Interest Income (GAAP)
$ 29,687
$ 28,438
$ 27,152
$ 26,455
$ 25,613
Add: Tax-Equivalent adjustment (Non-GAAP)
157
149
163
176
184
Net Interest Income - Tax Equivalent (Non-GAAP)
$ 29,844
$ 28,587
$ 27,315
$ 26,631
$ 25,797
Average Earning Assets
4,167,039
4,075,162
4,083,813
4,085,398
4,019,432
Net Interest Margin (Non-GAAP)*
2.85 %
2.79 %
2.69 %
2.62 %
2.55 %
3.
Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted).
4.
For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with bank regulatory capital rules. All prior quarters reflect actual results. The December 31, 2024 CET1 ratio listed in the tables (i.e., 12.71%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).
12/31/2024
9/30/2024
6/30/2024
3/31/2024
12/31/2023
Total Risk Weighted Assets
3,126,362
3,110,178
3,072,922
3,049,525
3,032,188
Common Equity Tier 1 Capital
397,285
397,122
395,691
391,706
394,166
Common Equity Tier 1 Ratio
12.71 %
12.77 %
12.88 %
12.84 %
13.00 %
* Quarterly ratios have been annualized
Arrow Financial Corporation
Average Consolidated Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands - Unaudited)
Quarter Ended:
December 31, 2024
December 31, 2023
Interest
Rate
Interest
Rate
Average
Income/
Earned/
Average
Income/
Earned/
Balance
Expense
Paid
Balance
Expense
Paid
Interest-Bearing Deposits at Banks
$ 233,469
$ 2,880
4.91 %
$ 136,026
1,873
5.46 %
Investment Securities:
Fully Taxable
484,860
2,728
2.24 %
586,227
2,941
1.99 %
Exempt from Federal Taxes
94,247
590
2.49 %
126,917
697
2.18 %
Loans (1)
3,354,463
44,703
5.30 %
3,170,262
38,813
4.86 %
Total Earning Assets (1)
4,167,039
50,901
4.86 %
4,019,432
44,324
4.38 %
Allowance for Credit Losses
(31,529)
(31,417)
Cash and Due From Banks
30,706
30,402
Other Assets
173,617
140,896
Total Assets
$ 4,339,833
$ 4,159,313
Deposits:
Interest-Bearing Checking Accounts
$ 802,808
1,932
0.96 %
$ 801,923
1,317
0.65 %
Savings Deposits
1,567,455
11,144
2.83 %
1,509,946
10,513
2.76 %
Time Deposits of $250,000 or More
183,325
1,815
3.94 %
169,854
1,807
4.22 %
Other Time Deposits
582,537
5,906
4.03 %
354,487
3,406
3.81 %
Total Interest-Bearing Deposits
3,136,125
20,797
2.64 %
2,836,210
17,043
2.38 %
Borrowings
24,089
198
3.27 %
124,445
1,447
4.61 %
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
20,000
172
3.42 %
20,000
173
3.43 %
Finance Leases
5,001
47
3.74 %
5,062
48
3.76 %
Total Interest-Bearing Liabilities
3,185,215
21,214
2.65 %
2,985,717
18,711
2.49 %
Noninterest-Bearing Deposits
711,566
757,739
Other Liabilities
49,356
52,104
Total Liabilities
3,946,137
3,795,560
Stockholders' Equity
393,696
363,753
Total Liabilities and Stockholders' Equity
$ 4,339,833
$ 4,159,313
Net Interest Income
$ 29,687
$ 25,613
Net Interest Spread
2.21 %
1.89 %
Net Interest Margin
2.83 %
2.53 %
(1) Includes Nonaccrual Loans
Arrow Financial Corporation
Average Consolidated Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands - Unaudited)
Quarter Ended:
December 31, 2024
September 30, 2024
Interest
Rate
Interest
Rate
Average
Income/
Earned/
Average
Income/
Earned/
Balance
Expense
Paid
Balance
Expense
Paid
Interest-Bearing Deposits at Banks
$ 233,469
$ 2,880
4.91 %
$ 154,937
2,103
5.40 %
Investment Securities:
Fully Taxable
484,860
2,728
2.24 %
497,450
2,656
2.12 %
Exempt from Federal Taxes
94,247
590
2.49 %
92,902
562
2.41 %
Loans (1)
3,354,463
44,703
5.30 %
3,329,873
44,122
5.27 %
Total Earning Assets (1)
4,167,039
50,901
4.86 %
4,075,162
49,443
4.83 %
Allowance for Credit Losses
(31,529)
(31,147)
Cash and Due From Banks
30,706
33,159
Other Assets
173,617
168,423
Total Assets
$ 4,339,833
$ 4,245,597
Deposits:
Interest-Bearing Checking Accounts
$ 802,808
1,932
0.96 %
$ 785,134
1,966
1.00 %
Savings Deposits
1,567,455
11,144
2.83 %
1,492,888
10,905
2.91 %
Time Deposits of $250,000 or More
183,325
1,815
3.94 %
174,028
1,803
4.12 %
Other Time Deposits
582,537
5,906
4.03 %
498,767
4,934
3.94 %
Total Interest-Bearing Deposits
3,136,125
20,797
2.64 %
2,950,817
19,608
2.64 %
Borrowings
24,089
198
3.27 %
109,230
1,177
4.29 %
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
20,000
172
3.42 %
20,000
173
3.44 %
Finance Leases
5,001
47
3.74 %
5,019
47
3.73 %
Total Interest-Bearing Liabilities
3,185,215
21,214
2.65 %
3,085,066
21,005
2.71 %
Noninterest-Bearing Deposits
711,566
721,311
Other Liabilities
49,356
51,316
Total Liabilities
3,946,137
3,857,693
Stockholders' Equity
393,696
387,904
Total Liabilities and Stockholders' Equity
$ 4,339,833
$ 4,245,597
Net Interest Income
$ 29,687
$ 28,438
Net Interest Spread
2.21 %
2.12 %
Net Interest Margin
2.83 %
2.78 %
Arrow Financial Corporation
Average Consolidated Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands - Unaudited)
Years Ended December 31:
2024
2023
Interest
Rate
Interest
Rate
Average
Income/
Earned/
Average
Income/
Earned/
Balance
Expense
Paid
Balance
Expense
Paid
Interest-Bearing Deposits at Banks
$ 181,618
$ 9,615
5.29 %
$ 109,906
5,831
5.31 %
Investment Securities:
Fully Taxable
515,794
11,579
2.24 %
622,575
11,764
1.89 %
Exempt from Federal Taxes
105,196
2,457
2.34 %
141,966
2,953
2.08 %
Loans
3,300,346
171,342
5.19 %
3,074,261
142,016
4.62 %
Total Earning Assets
4,102,954
194,993
4.75 %
3,948,708
162,564
4.12 %
Allowance for Credit Losses
(31,387)
(30,799)
Cash and Due From Banks
30,577
30,640
Other Assets
164,577
135,970
Total Assets
$ 4,266,721
$ 4,084,519
Deposits:
Interest-Bearing Checking Accounts
$ 812,634
7,442
0.92 %
$ 855,931
3,663
0.43 %
Savings Deposits
1,507,227
42,850
2.84 %
1,498,749
34,343
2.29 %
Time Deposits of $250,000 or More
176,844
7,460
4.22 %
137,974
4,966
3.60 %
Other Time Deposits
520,658
20,997
4.03 %
241,218
7,127
2.95 %
Total Interest-Bearing Deposits
3,017,363
78,749
2.61 %
2,733,872
50,099
1.83 %
Borrowings
84,106
3,637
4.32 %
144,971
6,756
4.66 %
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
20,000
686
3.43 %
20,000
686
3.43 %
Finance Leases
5,026
189
3.76 %
5,082
191
3.76 %
Total Interest-Bearing Liabilities
3,126,495
83,261
2.66 %
2,903,925
57,732
1.99 %
Demand Deposits
705,863
772,889
Other Liabilities
49,505
44,924
Total Liabilities
3,881,863
3,721,738
Stockholders' Equity
384,858
362,781
Total Liabilities and Stockholders' Equity
$ 4,266,721
$ 4,084,519
Net Interest Income
$ 111,732
$ 104,832
Net Interest Spread
2.09 %
2.13 %
Net Interest Margin
2.72 %
2.65 %
Arrow Financial Corporation
Consolidated Financial Information
(Dollars in Thousands - Unaudited)
Quarter Ended:
12/31/2024
12/31/2023
Loan Portfolio
Commercial Loans
$ 158,991
$ 156,224
Commercial Real Estate Loans
796,365
745,487
Subtotal Commercial Loan Portfolio
955,356
901,711
Consumer Loans
1,118,981
1,111,667
Residential Real Estate Loans
1,320,204
1,199,530
Total Loans
$ 3,394,541
$ 3,212,908
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Quarter
$ 31,262
$ 31,112
Loans Charged-off
(1,333)
(1,366)
Recoveries of Loans Previously Charged-off
815
994
Net Loans Charged-off
(518)
(372)
Provision for Credit Losses
2,854
525
Allowance for Credit Losses, End of Quarter
$ 33,598
$ 31,265
Nonperforming Assets
Nonaccrual Loans
$ 20,621
$ 20,645
Loans Past Due 90 or More Days and Accruing
398
452
Loans Restructured and in Compliance with Modified Terms
20
54
Total Nonperforming Loans
21,039
21,151
Repossessed Assets
382
312
Other Real Estate Owned
76
—
Total Nonperforming Assets
$ 21,497
$ 21,463
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Quarter-to-date
Annualized
0.06 %
0.05 %
Provision for Credit Losses to Average Loans, Quarter-to-date
Annualized
0.34 %
0.07 %
Allowance for Credit Losses to Period-End Loans
0.99 %
0.97 %
Allowance for Credit Losses to Period-End Nonperforming Loans
159.69 %
147.82 %
Nonperforming Loans to Period-End Loans
0.62 %
0.66 %
Nonperforming Assets to Period-End Assets
0.50 %
0.51 %
Twelve-Month Period Ended:
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Year
31,265
29,952
Loans Charged-off
(5,895)
(5,177)
Recoveries of Loans Previously Charged-off
3,048
3,109
Net Loans Charged-off
(2,847)
(2,068)
Provision for Credit Losses
5,180
3,381
Allowance for Credit Losses, End of Year
$ 33,598
$ 31,265
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans
0.09 %
0.07 %
Provision for Credit Losses to Average Loans
0.16 %
0.11 %
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SOURCE Arrow Financial Corporation