GLENS
FALLS, N.Y., Oct. 31,
2024 /PRNewswire/ -- Arrow Financial Corporation
(NasdaqGS® – AROW) ("Arrow" or "the Company") announced
financial results for the three-month period ended
September 30, 2024. Net income for the third quarter of 2024
was $9.0 million and fully diluted
earnings per share ("EPS") was $0.53,
versus $7.7 million and EPS of
$0.46 for the same period in
2023.
This Earnings Release and related commentary should be read
in conjunction with the Company's October 31, 2024 Form 8-K
and related Third Quarter 2024 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 a solid third quarter with strong net interest
margin expansion, improved core profitability, increased return on
average assets and continued strong credit metrics. Stabilizing
funding costs, increasing asset yields, and continued expense
discipline have positioned us for increased core operating leverage
for the upcoming quarters. Our incredible teamwork was recently
recognized by being named to the prestigious Piper Sandler Sm-All
Stars: Class of 2024, a list of 30 top-performing small-cap banks
and thrifts in the country.
Among our third-quarter accomplishments, we completed two small
acquisitions. We expanded our insurance business with the strategic
acquisition of the assets of A&B Agency, Inc. and acquired a
branch in Whitehall, New York. Our
team continues to prepare for the unification of our banking
subsidiaries, Glens Falls National Bank and Trust Company and
Saratoga National Bank and Trust Company, into a single entity
renamed Arrow Bank National Association, or Arrow Bank, slated for
December 31, 2024. Starting in early
November, our customers will gain surcharge-free access to the
Allpoint ATM Network of more than 55,000 locations. As we continue
to strengthen our market position, we also rewarded our
shareholders with an increase to the fourth-quarter cash dividend,
which we announced in early October."
Third-Quarter Highlights and Key Metrics
- EPS improved $0.07 to
$0.53 versus the same period in 2023
and $0.01 over the previous
quarter
- Results included approximately $450
thousand of non-core expenses related to our insurance
agency and branch acquisitions as well as unification efforts
- Deposit balances were $3.8
billion, resulting in a Loan-to-Deposit ratio of 87.0%
- Net Interest Margin improved to 2.78% (2.79% FTE1),
up from 2.67% (2.69% FTE) in the prior quarter
- Year-to-date loan growth reached $126.3
million2 (5.2% annualized)
- Resumed mortgage loan sales into the secondary market
- Average Loan Yields increased to 5.27% for 3Q24, up from 5.17%
in the prior quarter
- Net Charge-Offs for the quarter were 8bps on an annualized
basis
- Tangible Book Value increased to $21.95
- Accumulated Other Comprehensive Loss improved $5.7 million, or 18%, from the prior quarter
- Return on Average Assets (ROA) improved to 0.84%, up from 0.82%
in the previous quarter
|
__________________________________
|
|
1 FTE
Net interest margin is a non-GAAP measure. See reconciliation on
Note 3 to the Selected Quarterly Information.
|
|
2 Excludes both $6.5 million fair
value hedge adjustment at September 30, 2024 and $5.8 million fair
value hedge adjustment at December 31, 2023
|
|
Income Statement
- Net Income: Net income for the third quarter of 2024 was
$9.0 million, increasing from
$8.6 million in the second quarter of
2024 and $7.7 million in the third
quarter of 2023.
- Compared to the prior quarter, net income benefited from an
increase of $1.3 million in net
interest income, partially offset by an increase in non-interest
expense of $0.8 million.
- Compared to the third quarter of 2023, net income growth was
driven by an increase in net interest income of $3.1 million, partially offset by an increase in
non-interest expense of $0.6
million.
- Net Interest Income: Net interest income for the third
quarter of 2024 was $28.4 million,
increasing 4.7% from $27.2 million
for the second quarter of 2024 and increasing 12.2% from
$25.4 million in the third quarter of
2023.
- Total interest and dividend income was $49.4 million for the third quarter of 2024, an
increase from $48.0 million in the
second quarter of 2024 and from $42.1
million for the third quarter of 2023. These increases were
primarily driven by loan growth and higher loan yields. Interest
expense for the third quarter of 2024 was $21.0 million, an increase from $20.8 million for the second quarter of 2024 and
from $16.8 million for the third
quarter of 2023. The increase from the prior year was driven
primarily by higher deposit rates and changes in deposit
composition.
- Net Interest Margin: Net interest margin, on an FTE
basis, for the third quarter of 2024 was 2.79% compared to 2.69%
for the second quarter of 2024 and 2.55% for the third quarter of
2023. The increase in net interest margin compared to the second
quarter in 2024 was primarily the result of continued yield
expansion on earning assets combined with the moderating cost of
interest-bearing liabilities. As compared to the third quarter of
2023, the increase in net interest margin was primarily the result
of yield on average earning assets increasing at a faster pace than
costs of interest-bearing liabilities. Net interest margin is
affected by deposits continuing to migrate to higher costing
products, such as money market savings and time deposits.
|
Three Months
Ended
|
|
(Dollars in
Thousands)
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
Interest and Dividend
Income
|
$
49,443
|
|
$
47,972
|
|
$
42,117
|
|
Interest
Expense
|
21,005
|
|
20,820
|
|
16,764
|
|
Net Interest
Income
|
28,438
|
|
27,152
|
|
25,353
|
|
Average Earning
Assets(A)
|
4,075,162
|
|
4,083,813
|
|
3,973,747
|
|
Average
Interest-Bearing Liabilities
|
3,085,066
|
|
3,127,417
|
|
2,920,518
|
|
|
|
|
|
|
|
Yield on Earning
Assets(A)
|
4.83 %
|
|
4.72 %
|
|
4.20 %
|
|
Cost of
Interest-Bearing Liabilities
|
2.71
|
|
2.68
|
|
2.28
|
|
Net Interest
Spread
|
2.12
|
|
2.04
|
|
1.92
|
|
Net Interest
Margin
|
2.78
|
|
2.67
|
|
2.53
|
|
Net Interest Margin -
FTE
|
2.79
|
|
2.69
|
|
2.55
|
|
|
|
|
|
|
|
(A) Includes
Nonaccrual Loans.
|
|
|
|
|
|
|
|
|
|
|
|
- Provision for Credit Losses: For the third quarter of
2024, the provision for credit losses was $0.9 million compared to $0.8 million in the second quarter of 2024 and
$0.4 million in the third quarter of
2023. The key drivers for the provision for credit losses in the
third quarter of 2024 were replenishment of the allowance for
charge-offs, growth in loan balances and changes to the economic
forecast factors embedded in the credit loss allowance model.
- Non-Interest Income: Non-interest income for the three
months ended September 30, 2024, was
$8.1 million, an increase from
$7.9 million in the second quarter of
2024 and consistent with the third quarter of 2023. The increases
from the prior periods are primarily the result of the resumption
of loan sales from current loan originations, higher wealth
management fees resulting from improved market valuations of assets
under management and increased insurance commissions resulting from
the A&B asset acquisition. The third quarter of 2023 included
one-time proceeds from bank-owned life insurance in other
income.
- Non-Interest Expense: Non-interest expense for the third
quarter of 2024 was $24.1 million, an
increase from $23.3 million in the
second quarter of 2024 and an increase from $23.5 million for the third quarter of 2023. The
increase from the prior quarter was primarily attributable to
several one-time non-core expenses related to the Whitehall and A&B asset acquisitions.
- Provision for Income Taxes: The provision for income
taxes and effective tax rate were $2.6
million and 22.2%, for the third quarter of 2024,
$2.3 million and 21.2%, for the
second quarter of 2024 and $1.8
million and 19.1%, for the third quarter of 2023. The
increase in the effective tax rate from the second quarter of 2024
was primarily attributable to a decrease in the amount of tax
advantaged earning assets as a percentage of total earning assets,
while the increase in the effective tax rate from the third quarter
of 2023 was primarily due to a change in pre-tax income combined
with a decrease in the amount of tax advantaged earning assets as a
percentage of total earning assets.
Balance Sheet
- Total Assets: Total assets were $4.4 billion at September
30, 2024, an increase of $167.0
million, or 3.9%, as compared to June
30, 2024 and an increase of $138.5
million, or 3.2%, as compared to September 30, 2023. For the third quarter of
2024, overall growth in the balance sheet was attributable to
changes in cash balances, primarily seasonal municipal and
corporate deposits, as well as growth in the loan portfolio.
- Investments: Total investments were $549.8 million as of September 30, 2024, a decrease of $6.6 million, or 1.2%, compared to June 30, 2024 and a decrease of $117.0 million, or 17.6%, compared to
September 30, 2023. The decrease from
June 30, 2024 was driven primarily by
paydowns and maturities. The decrease from September 30, 2023 was also driven by paydowns
and maturities as well as the fourth quarter 2023 repositioning of
the investment portfolio, which reduced the portfolio by
approximately $25 million at the time
of the transaction. There were no credit quality issues related to
the investment portfolio.
- Loans3: Total loans were $3.3 billion as of September 30, 2024. Loan growth for the third
quarter of 2024 was $24.2 million,
and $201.2 million since September 30, 2023. Loan growth was spread across
all loan products. Please see the loan detail included in the
Consolidated Financial Information table on page 13.
- Allowance for Credit Losses: The allowance for credit
losses was $31.3 million as of
September 30, 2024, which represented
0.94% of loans outstanding, as compared to $31.0 million, or 0.94%, at June 30, 2024, and $31.1
million, or 0.99%, at September 30,
2023. Net charge-offs, expressed as an annualized percentage
of average loans outstanding, were 0.08% for the three-month period
ended September 30, 2024, as compared
to 0.16%4 for the three-month period ended
June 30, 2024 and 0.05% for the
three-month period ended September 30,
2023. Nonperforming assets were $22.3
million as of September 30,
2024, representing 0.51% of period-end assets, compared to
0.50% at June 30, 2024 and 0.16% at
September 30, 2023.
- Deposits: At September 30,
2024, deposit balances were $3.8
billion, an increase of $153.8
million from June 30, 2024 and
an increase of $171.0 million from
September 30, 2023. The increase from
the second quarter was primarily attributable to the seasonality of
municipal deposits. The increase from September 30, 2023 was partially attributable to
$175 million of brokered CDs,
primarily used to reduce borrowings and fund continued loan growth.
Please refer to page 7 for further details related to deposits.
- Capital: Total stockholders' equity was $393.3 million at September 30, 2024, an increase of $10.3 million, or 2.7%, from June 30, 2024 and an increase of $33.3 million, or 9.2%, from the September 30, 2023 level of $360.0 million. The increase from the second
quarter was primarily attributable to net income of $9.0 million, other comprehensive income of
$5.7 million offset by dividends of
$4.5 million. The increase in
stockholders' equity from September 30,
2023 was primarily attributable to income for the period of
$32.9 million, other comprehensive
income of $26.6 million and various
capital items of $1.1 million offset
by dividends of $18.1 million and
stock repurchases of $9.2 million.
Arrow's regulatory capital ratios remained strong. As of
September 30, 2024, Arrow's Common
Equity Tier 1 Capital Ratio was 12.77% and Total Risk-Based Capital
Ratio was 14.46%. The capital ratios of Arrow's subsidiary banks,
Glens Falls National Bank and Trust Company and Saratoga National
Bank and Trust Company, continued to exceed the "well capitalized"
regulatory standards.
|
______________________________________
|
|
3 Includes both $6.5 million fair
value hedge adjustment at September 30, 2024 and $0.4 million fair
value hedge adjustment at June 30, 2024
|
|
4
Charge-offs for 2Q24 included 0.09% related to a previously
specifically reserved amount for overdraft balances relating to one
customer relationship
|
|
Additional Commentary
- Piper Sandler Sm-All Stars: Arrow was recently named to
the prestigious Piper Sandler Sm-All Stars: Class of 2024, a list
of 30 top-performing small-cap banks and thrifts in the country.
Arrow is one of just three New
York financial institutions on the list and the only bank in
Upstate New York. Piper Sandler, an
independent investment bank and research firm, evaluated more than
300 institutions that trade on a major exchange, narrowing the
field to the top 30.
- Bauer Financial Ratings: Both Glens Falls National Bank
and Trust Company and Saratoga National Bank and Trust Company
continued to maintain their 5-Star Exceptional Performance ratings
from Bauer Financial, for the 69th and 61st quarters,
respectively.
- Subsidiary Bank Unification: Arrow received approval
from the Office of the Comptroller of the Currency to combine its
two subsidiary banks, Glens Falls National Bank and Trust Company
and Saratoga National Bank and Trust Company, into one bank that
will be known as Arrow Bank National Association. The combination
will create operational efficiencies, unify branding and enhance
Arrow's ability to pursue its strategic growth objectives. The
combination of the entities is anticipated to become effective
December 31, 2024.
About Arrow
Arrow Financial Corporation is a multi-bank holding company
headquartered in Glens Falls, New
York, serving the financial needs of northeastern
New York. Arrow is the parent of
Glens Falls National Bank and Trust Company and Saratoga National
Bank and Trust Company. Other subsidiaries include Upstate Agency,
LLC and 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). Some 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. These non-GAAP financial measures
include: tangible equity, return on tangible equity, tax-equivalent
adjustment and related net interest income, tax-equivalent, the
efficiency ratio and net interest margin (FTE). Management believes
that the non-GAAP financial measures disclosed by Arrow 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 in this document may contain statements based on
management's beliefs, assumptions, expectations, estimates and
projections about the future. Such "forward-looking statements," as
defined in Section 21E of the Securities Exchange Act of 1934, as
amended, involve a degree of uncertainty and attendant risk. Actual
outcomes and results may differ, explicitly or by implication. We
are not obligated to revise or update these statements to reflect
unanticipated events. This document 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
September 30
|
|
Nine Months Ended
September 30
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
|
|
|
Interest and Fees on
Loans
|
|
$
44,122
|
|
$
36,699
|
|
$ 126,639
|
|
$ 103,203
|
|
Interest on Deposits at
Banks
|
|
2,103
|
|
1,805
|
|
6,735
|
|
3,958
|
|
Interest and Dividends
on Investment Securities:
|
|
|
|
|
|
|
|
|
|
Fully
Taxable
|
|
2,656
|
|
2,924
|
|
8,851
|
|
8,823
|
|
Exempt from Federal
Taxes
|
|
562
|
|
689
|
|
1,867
|
|
2,256
|
|
Total Interest and
Dividend Income
|
|
49,443
|
|
42,117
|
|
144,092
|
|
118,240
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Checking Accounts
|
|
1,966
|
|
1,156
|
|
5,510
|
|
2,346
|
|
Savings
Deposits
|
|
10,905
|
|
9,729
|
|
31,706
|
|
23,830
|
|
Time Deposits over
$250,000
|
|
1,803
|
|
1,466
|
|
5,645
|
|
3,159
|
|
Other Time
Deposits
|
|
4,934
|
|
2,051
|
|
15,091
|
|
3,721
|
|
Borrowings
|
|
1,177
|
|
2,143
|
|
3,439
|
|
5,309
|
|
Junior Subordinated
Obligations Issued to
Unconsolidated
Subsidiary Trusts
|
|
173
|
|
173
|
|
514
|
|
513
|
|
Interest on Financing
Leases
|
|
47
|
|
46
|
|
142
|
|
143
|
|
Total Interest
Expense
|
|
21,005
|
|
16,764
|
|
62,047
|
|
39,021
|
|
NET INTEREST
INCOME
|
|
28,438
|
|
25,353
|
|
82,045
|
|
79,219
|
|
Provision for Credit
Losses
|
|
934
|
|
354
|
|
2,326
|
|
2,856
|
|
NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES
|
|
27,504
|
|
24,999
|
|
79,719
|
|
76,363
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Income From Fiduciary
Activities
|
|
2,429
|
|
2,378
|
|
7,337
|
|
7,081
|
|
Fees for Other Services
to Customers
|
|
2,881
|
|
2,761
|
|
8,130
|
|
8,073
|
|
Insurance
Commissions
|
|
1,955
|
|
1,695
|
|
5,299
|
|
4,775
|
|
Net Gain (Loss) on
Securities
|
|
94
|
|
71
|
|
165
|
|
(214)
|
|
Net Gain on Sales of
Loans
|
|
126
|
|
21
|
|
135
|
|
25
|
|
Other Operating
Income
|
|
648
|
|
1,124
|
|
2,781
|
|
1,893
|
|
Total Non-Interest
Income
|
|
8,133
|
|
8,050
|
|
23,847
|
|
21,633
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and Employee
Benefits
|
|
13,446
|
|
11,988
|
|
39,375
|
|
35,974
|
|
Occupancy Expenses,
Net
|
|
1,754
|
|
1,517
|
|
5,299
|
|
4,728
|
|
Technology and
Equipment Expense
|
|
4,692
|
|
4,371
|
|
14,246
|
|
13,150
|
|
FDIC
Assessments
|
|
698
|
|
515
|
|
2,111
|
|
1,478
|
|
Other Operating
Expense
|
|
3,510
|
|
5,088
|
|
10,399
|
|
14,528
|
|
Total Non-Interest
Expense
|
|
24,100
|
|
23,479
|
|
71,430
|
|
69,858
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
|
11,537
|
|
9,570
|
|
32,136
|
|
28,138
|
|
Provision for Income
Taxes
|
|
2,562
|
|
1,827
|
|
6,897
|
|
5,786
|
|
NET
INCOME
|
|
$
8,975
|
|
$
7,743
|
|
$
25,239
|
|
$
22,352
|
|
Average Shares
Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,710
|
|
17,050
|
|
16,746
|
|
17,049
|
|
Diluted
|
|
16,742
|
|
17,050
|
|
16,772
|
|
17,049
|
|
Per Common
Share:
|
|
|
|
|
|
|
|
|
|
Basic
Earnings
|
|
$
0.54
|
|
$
0.46
|
|
$
1.51
|
|
$
1.31
|
|
Diluted
Earnings
|
|
0.53
|
|
0.46
|
|
1.50
|
|
1.31
|
|
ARROW FINANCIAL
CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(In Thousands, Except
Share and Per Share Amounts - Unaudited)
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
ASSETS
|
|
|
|
|
|
|
Cash and Due From
Banks
|
$
53,969
|
|
$
36,755
|
|
$
39,778
|
|
Interest-Bearing
Deposits at Banks
|
286,119
|
|
105,781
|
|
254,961
|
|
Investment
Securities:
|
|
|
|
|
|
|
Available-for-Sale at
Fair Value
|
437,067
|
|
497,769
|
|
519,240
|
|
Held-to-Maturity (Fair
Value of $101,929 at September 30, 2024; $128,837 at
December 31, 2023; and $134,811 at September 30,
2023)
|
103,337
|
|
131,395
|
|
140,577
|
|
Equity
Securities
|
5,089
|
|
1,925
|
|
1,960
|
|
Other
Investments
|
4,352
|
|
5,049
|
|
5,110
|
|
Loans
|
3,339,937
|
|
3,212,908
|
|
3,138,617
|
|
Allowance for Credit
Losses
|
(31,262)
|
|
(31,265)
|
|
(31,112)
|
|
Net Loans
|
3,308,675
|
|
3,181,643
|
|
3,107,505
|
|
Premises and Equipment,
Net
|
59,932
|
|
59,642
|
|
60,311
|
|
Goodwill
|
23,789
|
|
21,873
|
|
21,873
|
|
Other Intangible
Assets, Net
|
2,190
|
|
1,110
|
|
1,205
|
|
Other Assets
|
126,930
|
|
126,926
|
|
120,391
|
|
Total
Assets
|
$
4,411,449
|
|
$
4,169,868
|
|
$
4,272,911
|
|
LIABILITIES
|
|
|
|
|
|
|
Noninterest-Bearing
Deposits
|
740,170
|
|
758,425
|
|
798,392
|
|
Interest-Bearing
Checking Accounts
|
875,365
|
|
799,785
|
|
920,250
|
|
Savings
Deposits
|
1,544,868
|
|
1,466,280
|
|
1,496,193
|
|
Time Deposits over
$250,000
|
177,990
|
|
179,301
|
|
167,614
|
|
Other Time
Deposits
|
499,064
|
|
483,775
|
|
284,036
|
|
Total
Deposits
|
3,837,457
|
|
3,687,566
|
|
3,666,485
|
|
Borrowings
|
103,600
|
|
26,500
|
|
174,300
|
|
Junior Subordinated
Obligations Issued to Unconsolidated
Subsidiary
Trusts
|
20,000
|
|
20,000
|
|
20,000
|
|
Finance
Leases
|
5,022
|
|
5,066
|
|
5,080
|
|
Other
Liabilities
|
52,059
|
|
50,964
|
|
47,032
|
|
Total
Liabilities
|
4,018,138
|
|
3,790,096
|
|
3,912,897
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred Stock, $1 Par
Value and 1,000,000 Shares Authorized at September 30, 2024,
December 31, 2023 and September 30, 2023
|
—
|
|
—
|
|
—
|
|
Common Stock, $1 Par
Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued
at September 30, 2024, December 31, 2023 and
September 30, 2023)
|
22,067
|
|
22,067
|
|
22,067
|
|
Additional Paid-in
Capital
|
413,065
|
|
412,551
|
|
412,397
|
|
Retained
Earnings
|
77,429
|
|
65,792
|
|
62,647
|
|
Accumulated Other
Comprehensive Loss
|
(25,968)
|
|
(33,416)
|
|
(52,584)
|
|
Treasury Stock, at Cost
(5,332,907 Shares at September 30, 2024; 5,124,073 Shares at
December 31, 2023 and 5,017,063 Shares at September 30,
2023)
|
(93,282)
|
|
(87,222)
|
|
(84,513)
|
|
Total Stockholders'
Equity
|
393,311
|
|
379,772
|
|
360,014
|
|
Total Liabilities and
Stockholders' Equity
|
$
4,411,449
|
|
$
4,169,868
|
|
$
4,272,911
|
|
Arrow Financial
Corporation
|
|
Selected Quarterly
Information
|
|
(Dollars In Thousands,
Except Per Share Amounts - Unaudited)
|
|
|
Quarter
Ended
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Net Income
|
$
8,975
|
|
$
8,604
|
|
$
7,660
|
|
$
7,723
|
|
$
7,743
|
|
|
|
|
|
|
|
|
|
|
|
Net Changes in Fair
Value of Equity Investments (Net of Tax)
|
69
|
|
39
|
|
13
|
|
90
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
Period End Shares
Outstanding
|
16,734
|
|
16,723
|
|
16,710
|
|
16,942
|
|
17,049
|
|
Basic Average Shares
Outstanding
|
16,710
|
|
16,685
|
|
16,865
|
|
17,002
|
|
17,050
|
|
Diluted Average Shares
Outstanding
|
16,742
|
|
16,709
|
|
16,867
|
|
17,004
|
|
17,050
|
|
Basic Earnings Per
Share
|
$
0.54
|
|
$
0.52
|
|
$
0.45
|
|
$
0.46
|
|
$
0.46
|
|
Diluted Earnings Per
Share
|
0.53
|
|
0.52
|
|
0.45
|
|
0.46
|
|
0.46
|
|
Cash Dividend Per
Share
|
0.270
|
|
0.270
|
|
0.270
|
|
0.270
|
|
0.262
|
|
|
|
|
|
|
|
|
|
|
|
Selected Quarterly
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Deposits at Banks
|
$ 154,937
|
|
$
159,336
|
|
$ 178,452
|
|
$
136,026
|
|
$
131,814
|
|
Investment
Securities
|
590,352
|
|
644,192
|
|
671,105
|
|
713,144
|
|
745,693
|
|
Loans
|
3,329,873
|
|
3,280,285
|
|
3,235,841
|
|
3,170,262
|
|
3,096,240
|
|
Deposits
|
3,672,128
|
|
3,678,957
|
|
3,693,325
|
|
3,593,949
|
|
3,491,028
|
|
Other Borrowed
Funds
|
134,249
|
|
131,537
|
|
122,033
|
|
149,507
|
|
208,527
|
|
Stockholders'
Equity
|
387,904
|
|
378,256
|
|
379,446
|
|
363,753
|
|
362,701
|
|
Total
Assets
|
4,245,597
|
|
4,237,359
|
|
4,245,484
|
|
4,159,313
|
|
4,109,995
|
|
Return on Average
Assets, annualized
|
0.84 %
|
|
0.82 %
|
|
0.73 %
|
|
0.74 %
|
|
0.75 %
|
|
Return on Average
Equity, annualized
|
9.20 %
|
|
9.15 %
|
|
8.12 %
|
|
8.42 %
|
|
8.47 %
|
|
Return on Average
Tangible Equity, annualized 1
|
9.79 %
|
|
9.74 %
|
|
8.64 %
|
|
8.99 %
|
|
9.05 %
|
|
Average Earning
Assets
|
$ 4,075,162
|
|
$ 4,083,813
|
|
$ 4,085,398
|
|
$ 4,019,432
|
|
$ 3,973,747
|
|
Average Paying
Liabilities
|
3,085,066
|
|
3,127,417
|
|
3,108,093
|
|
2,985,717
|
|
2,920,518
|
|
Interest
Income
|
49,443
|
|
47,972
|
|
46,677
|
|
44,324
|
|
42,117
|
|
Tax-Equivalent
Adjustment 2
|
149
|
|
163
|
|
176
|
|
184
|
|
183
|
|
Interest Income,
Tax-Equivalent 2
|
49,592
|
|
48,135
|
|
46,853
|
|
44,508
|
|
42,117
|
|
Interest
Expense
|
21,005
|
|
20,820
|
|
20,222
|
|
18,711
|
|
16,764
|
|
Net Interest
Income
|
28,438
|
|
27,152
|
|
26,455
|
|
25,613
|
|
25,353
|
|
Net Interest Income,
Tax-Equivalent 2
|
28,587
|
|
27,315
|
|
26,631
|
|
25,797
|
|
25,536
|
|
Net Interest Margin,
annualized
|
2.78 %
|
|
2.67 %
|
|
2.60 %
|
|
2.53 %
|
|
2.53 %
|
|
Net Interest Margin,
Tax-Equivalent, annualized 2
|
2.79 %
|
|
2.69 %
|
|
2.62 %
|
|
2.55 %
|
|
2.55 %
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
Calculation: 3
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Expense
|
$
24,100
|
|
$ 23,318
|
|
$
24,012
|
|
$ 23,190
|
|
$ 23,479
|
|
Less: Intangible Asset
Amortization
|
78
|
|
40
|
|
41
|
|
43
|
|
43
|
|
Net Non-Interest
Expense
|
$
24,022
|
|
$ 23,278
|
|
$
23,971
|
|
$ 23,147
|
|
$ 23,436
|
|
Net Interest Income,
Tax-Equivalent
|
$
28,587
|
|
$ 27,315
|
|
$
26,631
|
|
$ 25,797
|
|
$ 25,536
|
|
Non-Interest
Income
|
8,133
|
|
7,856
|
|
7,858
|
|
7,484
|
|
8,050
|
|
Less: Net Gain on
Securities
|
94
|
|
54
|
|
17
|
|
122
|
|
71
|
|
Net Gross
Income
|
$
36,626
|
|
$ 35,117
|
|
$
34,472
|
|
$ 33,159
|
|
$ 33,515
|
|
Efficiency
Ratio
|
65.59 %
|
|
66.29 %
|
|
69.54 %
|
|
69.81 %
|
|
69.93 %
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Capital
Information:
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity (i.e. Book Value)
|
$ 393,311
|
|
$
383,018
|
|
$ 377,986
|
|
$
379,772
|
|
$
360,014
|
|
Book Value per
Share
|
23.50
|
|
22.90
|
|
22.62
|
|
22.42
|
|
21.12
|
|
Goodwill and Other
Intangible Assets, net
|
25,979
|
|
22,800
|
|
22,891
|
|
22,983
|
|
23,078
|
|
Tangible Book Value per
Share 1
|
21.95
|
|
21.54
|
|
21.25
|
|
21.06
|
|
19.76
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:4
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage
Ratio
|
9.78 %
|
|
9.74 %
|
|
9.63 %
|
|
9.84 %
|
|
9.94 %
|
|
Common Equity Tier 1
Capital Ratio
|
12.77 %
|
|
12.88 %
|
|
12.84 %
|
|
13.00 %
|
|
13.17 %
|
|
Tier 1 Risk-Based
Capital Ratio
|
13.41 %
|
|
13.53 %
|
|
13.50 %
|
|
13.66 %
|
|
13.84 %
|
|
Total Risk-Based
Capital Ratio
|
14.46 %
|
|
14.57 %
|
|
14.57 %
|
|
14.74 %
|
|
14.94 %
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under Trust
Admin. & Investment Mgmt.
|
$ 1,944,239
|
|
$ 1,848,349
|
|
$ 1,829,266
|
|
$ 1,763,194
|
|
$ 1,627,522
|
|
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.
|
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Total Stockholders'
Equity (GAAP)
|
$
393,311
|
|
$
383,018
|
|
$
377,986
|
|
$
379,772
|
|
$
360,014
|
|
Less: Goodwill
and Other Intangible assets, net
|
25,979
|
|
22,800
|
|
22,891
|
|
22,983
|
|
23,078
|
|
Tangible Equity
(Non-GAAP)
|
$
367,332
|
|
$
360,218
|
|
$
355,095
|
|
$
356,789
|
|
$
336,936
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Shares
Outstanding
|
16,734
|
|
16,723
|
|
16,710
|
|
16,942
|
|
17,049
|
|
Tangible Book Value per
Share (Non-GAAP)
|
$
21.95
|
|
$
21.54
|
|
$
21.25
|
|
$
21.06
|
|
$
19.76
|
|
Net Income
|
8,975
|
|
8,604
|
|
7,660
|
|
7,723
|
|
7,743
|
|
Return on Tangible
Equity (Net Income/Tangible Equity - Annualized)
|
9.79 %
|
|
9.74 %
|
|
8.64 %
|
|
8.99 %
|
|
9.05 %
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Interest Income
(GAAP)
|
$ 49,443
|
|
$ 47,972
|
|
$ 46,677
|
|
$ 44,324
|
|
$ 42,117
|
|
Add:
Tax-Equivalent adjustment
(Non-GAAP)
|
149
|
|
163
|
|
176
|
|
184
|
|
183
|
|
Interest Income - Tax
Equivalent
(Non-GAAP)
|
$ 49,592
|
|
$ 48,135
|
|
$ 46,853
|
|
$ 44,508
|
|
$ 42,300
|
|
Net Interest Income
(GAAP)
|
$ 28,438
|
|
$ 27,152
|
|
$ 26,455
|
|
$ 25,613
|
|
$ 25,353
|
|
Add:
Tax-Equivalent adjustment
(Non-GAAP)
|
149
|
|
163
|
|
176
|
|
184
|
|
183
|
|
Net Interest Income -
Tax Equivalent
(Non-GAAP)
|
$ 28,587
|
|
$ 27,315
|
|
$ 26,631
|
|
$ 25,797
|
|
$ 25,536
|
|
Average Earning
Assets
|
$
4,075,162
|
|
$
4,083,813
|
|
$
4,085,398
|
|
$
4,019,432
|
|
$
3,973,747
|
|
Net Interest Margin
(Non-GAAP)*
|
2.79 %
|
|
2.69 %
|
|
2.62 %
|
|
2.55 %
|
|
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. 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 September 30, 2024 CET1
ratio listed in the tables (i.e., 12.77%) exceeds the sum of the
required minimum CET1 ratio plus the fully phased-in Capital
Conservation Buffer (i.e., 7.00%).
|
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Total Risk Weighted
Assets
|
$
3,110,178
|
|
$
3,072,922
|
|
$
3,049,525
|
|
$
3,032,188
|
|
$
2,988,438
|
|
Common Equity Tier 1
Capital
|
397,122
|
|
395,691
|
|
391,706
|
|
394,166
|
|
393,541
|
|
Common Equity Tier 1
Ratio
|
12.77 %
|
|
12.88 %
|
|
12.84 %
|
|
13.00 %
|
|
13.17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
* Quarterly ratios have
been annualized.
|
|
|
|
|
|
|
|
|
|
|
Arrow Financial
Corporation
|
|
Average Consolidated
Balance Sheets and Net Interest Income Analysis
|
|
(Dollars in Thousands -
Unaudited)
|
|
|
Quarter
Ended:
|
September 30,
2024
|
|
September 30,
2023
|
|
|
|
Interest
|
|
Rate
|
|
|
|
Interest
|
|
Rate
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Interest-Bearing
Deposits at Banks
|
$
154,937
|
|
$
2,103
|
|
5.40 %
|
|
$
131,814
|
|
$
1,805
|
|
5.43 %
|
|
Investment
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
Taxable
|
497,450
|
|
2,656
|
|
2.12
|
|
616,020
|
|
2,924
|
|
1.88
|
|
Exempt from Federal
Taxes
|
92,902
|
|
562
|
|
2.41
|
|
129,673
|
|
689
|
|
2.11
|
|
Loans
(1)
|
3,329,873
|
|
44,122
|
|
5.27
|
|
3,096,240
|
|
36,699
|
|
4.70
|
|
Total Earning Assets
(1)
|
4,075,162
|
|
49,443
|
|
4.83
|
|
3,973,747
|
|
42,117
|
|
4.20
|
|
Allowance for Credit
Losses
|
(31,147)
|
|
|
|
|
|
(31,386)
|
|
|
|
|
|
Cash and Due From
Banks
|
33,159
|
|
|
|
|
|
32,874
|
|
|
|
|
|
Other Assets
|
168,423
|
|
|
|
|
|
134,760
|
|
|
|
|
|
Total
Assets
|
$
4,245,597
|
|
|
|
|
|
$
4,109,995
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Checking Accounts
|
$
785,134
|
|
1,966
|
|
1.00
|
|
$
795,627
|
|
1,156
|
|
0.58
|
|
Savings
Deposits
|
1,492,888
|
|
10,905
|
|
2.91
|
|
1,505,916
|
|
9,729
|
|
2.56
|
|
Time Deposits of
$250,000 or More
|
174,028
|
|
1,803
|
|
4.12
|
|
152,738
|
|
1,466
|
|
3.81
|
|
Other Time
Deposits
|
498,767
|
|
4,934
|
|
3.94
|
|
257,710
|
|
2,051
|
|
3.16
|
|
Total Interest-Bearing
Deposits
|
2,950,817
|
|
19,608
|
|
2.64
|
|
2,711,991
|
|
14,402
|
|
2.11
|
|
Borrowings
|
109,230
|
|
1,177
|
|
4.29
|
|
183,452
|
|
2,143
|
|
4.63
|
|
Junior Subordinated
Obligations Issued to Unconsolidated Subsidiary Trusts
|
20,000
|
|
173
|
|
3.44
|
|
20,000
|
|
173
|
|
3.43
|
|
Finance
Leases
|
5,019
|
|
47
|
|
3.73
|
|
5,075
|
|
46
|
|
3.60
|
|
Total Interest-Bearing
Liabilities
|
3,085,066
|
|
21,005
|
|
2.71
|
|
2,920,518
|
|
16,764
|
|
2.28
|
|
Noninterest-Bearing
Deposits
|
721,311
|
|
|
|
|
|
779,037
|
|
|
|
|
|
Other
Liabilities
|
51,316
|
|
|
|
|
|
47,739
|
|
|
|
|
|
Total
Liabilities
|
3,857,693
|
|
|
|
|
|
3,747,294
|
|
|
|
|
|
Stockholders'
Equity
|
387,904
|
|
|
|
|
|
362,701
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
4,245,597
|
|
|
|
|
|
$
4,109,995
|
|
|
|
|
|
Net Interest
Income
|
|
|
$ 28,438
|
|
|
|
|
|
$ 25,353
|
|
|
|
Net Interest
Spread
|
|
|
|
|
2.12 %
|
|
|
|
|
|
1.92 %
|
|
Net Interest
Margin
|
|
|
|
|
2.78 %
|
|
|
|
|
|
2.53 %
|
|
|
(1)
Includes Nonaccrual Loans.
|
|
Arrow Financial
Corporation
|
|
Average Consolidated
Balance Sheets and Net Interest Income Analysis
|
|
(Dollars in Thousands -
Unaudited)
|
|
|
Quarter
Ended:
|
September 30,
2024
|
|
June 30,
2024
|
|
|
|
Interest
|
|
Rate
|
|
|
|
Interest
|
|
Rate
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Interest-Bearing
Deposits at Banks
|
$
154,937
|
|
$
2,103
|
|
5.40 %
|
|
$
159,336
|
|
$
2,185
|
|
5.52 %
|
|
Investment
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
Taxable
|
497,450
|
|
2,656
|
|
2.12
|
|
530,869
|
|
3,009
|
|
2.28
|
|
Exempt from Federal
Taxes
|
92,902
|
|
562
|
|
2.41
|
|
113,323
|
|
637
|
|
2.26
|
|
Loans
(1)
|
3,329,873
|
|
44,122
|
|
5.27
|
|
3,280,285
|
|
42,141
|
|
5.17
|
|
Total Earning Assets
(1)
|
4,075,162
|
|
49,443
|
|
4.83
|
|
4,083,813
|
|
47,972
|
|
4.72
|
|
Allowance for Credit
Losses
|
(31,147)
|
|
|
|
|
|
(31,459)
|
|
|
|
|
|
Cash and Due From
Banks
|
33,159
|
|
|
|
|
|
28,611
|
|
|
|
|
|
Other Assets
|
168,423
|
|
|
|
|
|
156,394
|
|
|
|
|
|
Total
Assets
|
$
4,245,597
|
|
|
|
|
|
$
4,237,359
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Checking Accounts
|
$
785,134
|
|
1,966
|
|
1.00
|
|
$
832,087
|
|
1,903
|
|
0.92
|
|
Savings
Deposits
|
1,492,888
|
|
10,905
|
|
2.91
|
|
1,487,062
|
|
10,571
|
|
2.86
|
|
Time Deposits of
$250,000 or More
|
174,028
|
|
1,803
|
|
4.12
|
|
172,655
|
|
1,869
|
|
4.35
|
|
Other Time
Deposits
|
498,767
|
|
4,934
|
|
3.94
|
|
504,076
|
|
5,074
|
|
4.05
|
|
Total Interest-Bearing
Deposits
|
2,950,817
|
|
19,608
|
|
2.64
|
|
2,995,880
|
|
19,417
|
|
2.61
|
|
Borrowings
|
109,230
|
|
1,177
|
|
4.29
|
|
106,502
|
|
1,186
|
|
4.48
|
|
Junior Subordinated
Obligations Issued to Unconsolidated Subsidiary Trusts
|
20,000
|
|
173
|
|
3.44
|
|
20,000
|
|
170
|
|
3.42
|
|
Finance
Leases
|
5,019
|
|
47
|
|
3.73
|
|
5,035
|
|
47
|
|
3.75
|
|
Total Interest-Bearing
Liabilities
|
3,085,066
|
|
21,005
|
|
2.71
|
|
3,127,417
|
|
20,820
|
|
2.68
|
|
Noninterest-Bearing
Deposits
|
721,311
|
|
|
|
|
|
683,077
|
|
|
|
|
|
Other
Liabilities
|
51,316
|
|
|
|
|
|
48,609
|
|
|
|
|
|
Total
Liabilities
|
3,857,693
|
|
|
|
|
|
3,859,103
|
|
|
|
|
|
Stockholders'
Equity
|
387,904
|
|
|
|
|
|
378,256
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
4,245,597
|
|
|
|
|
|
$
4,237,359
|
|
|
|
|
|
Net Interest
Income
|
|
|
$ 28,438
|
|
|
|
|
|
$ 27,152
|
|
|
|
Net Interest
Spread
|
|
|
|
|
2.12 %
|
|
|
|
|
|
2.04 %
|
|
Net Interest
Margin
|
|
|
|
|
2.78 %
|
|
|
|
|
|
2.67 %
|
|
|
(1)
Includes Nonaccrual Loans.
|
|
Average Consolidated
Balance Sheets and Net Interest Income Analysis
|
|
(GAAP
Basis)
|
|
(Dollars In
Thousands)
|
|
|
Nine Months Ended
September 30:
|
2024
|
|
2023
|
|
|
|
Interest
|
|
Rate
|
|
|
|
Interest
|
|
Rate
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Average
|
|
Income/
|
|
Earned/
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Balance
|
|
Expense
|
|
Paid
|
|
Interest-Bearing
Deposits at Banks
|
$
164,208
|
|
$
6,735
|
|
5.48 %
|
|
$
101,104
|
|
$
3,958
|
|
5.23 %
|
|
Investment
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully
Taxable
|
526,181
|
|
8,851
|
|
2.25
|
|
635,126
|
|
8,823
|
|
1.86
|
|
Exempt from Federal
Taxes
|
108,872
|
|
1,867
|
|
2.29
|
|
146,736
|
|
2,256
|
|
2.06
|
|
Loans
(1)
|
3,282,175
|
|
126,639
|
|
5.15
|
|
3,041,909
|
|
103,203
|
|
4.54
|
|
Total Earning Assets
(1)
|
4,081,436
|
|
144,092
|
|
4.72
|
|
3,924,875
|
|
118,240
|
|
4.03
|
|
Allowance for Credit
Losses
|
(31,340)
|
|
|
|
|
|
(30,591)
|
|
|
|
|
|
Cash and Due From
Banks
|
30,534
|
|
|
|
|
|
30,720
|
|
|
|
|
|
Other Assets
|
162,194
|
|
|
|
|
|
134,310
|
|
|
|
|
|
Total Assets
|
$
4,242,824
|
|
|
|
|
|
$
4,059,314
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Checking Accounts
|
$
815,933
|
|
5,510
|
|
0.90
|
|
$
874,132
|
|
2,346
|
|
0.36
|
|
Savings
Deposits
|
1,487,005
|
|
31,706
|
|
2.85
|
|
1,494,976
|
|
23,830
|
|
2.13
|
|
Time Deposits of
$250,000 or More
|
174,668
|
|
5,645
|
|
4.32
|
|
127,230
|
|
3,159
|
|
3.32
|
|
Other Time
Deposits
|
499,881
|
|
15,091
|
|
4.03
|
|
203,047
|
|
3,721
|
|
2.45
|
|
Total Interest-Bearing
Deposits
|
2,977,487
|
|
57,952
|
|
2.60
|
|
2,699,385
|
|
33,056
|
|
1.64
|
|
Borrowings
|
104,257
|
|
3,439
|
|
4.41
|
|
151,887
|
|
5,309
|
|
4.67
|
|
Junior Subordinated
Obligations Issued to Unconsolidated Subsidiary Trusts
|
20,000
|
|
514
|
|
3.43
|
|
20,000
|
|
513
|
|
3.43
|
|
Finance
Leases
|
5,034
|
|
142
|
|
3.77
|
|
5,088
|
|
143
|
|
3.76
|
|
Total Interest-Bearing
Liabilities
|
3,106,778
|
|
62,047
|
|
2.67
|
|
2,876,360
|
|
39,021
|
|
1.81
|
|
Noninterest-Bearing
Deposits
|
703,948
|
|
|
|
|
|
777,994
|
|
|
|
|
|
Other
Liabilities
|
50,207
|
|
|
|
|
|
42,506
|
|
|
|
|
|
Total
Liabilities
|
3,860,933
|
|
|
|
|
|
3,696,860
|
|
|
|
|
|
Stockholders'
Equity
|
381,891
|
|
|
|
|
|
362,454
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
4,242,824
|
|
|
|
|
|
$
4,059,314
|
|
|
|
|
|
Net Interest
Income
|
|
|
$ 82,045
|
|
|
|
|
|
$ 79,219
|
|
|
|
Net Interest
Spread
|
|
|
|
|
2.05 %
|
|
|
|
|
|
2.22 %
|
|
Net Interest
Margin
|
|
|
|
|
2.69 %
|
|
|
|
|
|
2.70 %
|
|
|
(1)
Includes Nonaccrual Loans.
|
|
Arrow Financial
Corporation
|
|
Consolidated
Financial Information
|
|
(Dollars in Thousands -
Unaudited)
|
|
|
Quarter
Ended:
|
9/30/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Loan
Portfolio
|
|
|
|
|
|
|
Commercial
Loans
|
$
169,884
|
|
$
156,224
|
|
$
148,066
|
|
Commercial Real Estate
Loans
|
756,420
|
|
745,487
|
|
734,604
|
|
Subtotal
Commercial Loan Portfolio
|
926,304
|
|
901,711
|
|
882,670
|
|
Consumer
Loans
|
1,120,241
|
|
1,111,667
|
|
1,107,638
|
|
Residential Real Estate
Loans
|
1,293,392
|
|
1,199,530
|
|
1,148,309
|
|
Total Loans
|
$
3,339,937
|
|
$
3,212,908
|
|
$
3,138,617
|
|
Allowance for Credit
Losses
|
|
|
|
|
|
|
Allowance for Credit
Losses, Beginning of Quarter
|
$
31,009
|
|
$
31,112
|
|
$
31,170
|
|
Loans
Charged-off
|
(1,429)
|
|
(1,366)
|
|
(1,204)
|
|
Less Recoveries of
Loans Previously Charged-off
|
748
|
|
994
|
|
792
|
|
Net Loans
Charged-off
|
(681)
|
|
(372)
|
|
(412)
|
|
Provision for Credit
Losses
|
934
|
|
525
|
|
354
|
|
Allowance for Credit
Losses, End of Quarter
|
$
31,262
|
|
$
31,265
|
|
$
31,112
|
|
Nonperforming
Assets
|
|
|
|
|
|
|
Nonaccrual
Loans
|
$
21,047
|
|
$
20,645
|
|
$
6,023
|
|
Loans Past Due 90 or
More Days and Accruing
|
816
|
|
452
|
|
251
|
|
Loans Restructured and
in Compliance with Modified Terms
|
30
|
|
54
|
|
60
|
|
Total Nonperforming
Loans
|
21,893
|
|
21,151
|
|
6,334
|
|
Repossessed
Assets
|
322
|
|
312
|
|
344
|
|
Other Real Estate
Owned
|
76
|
|
—
|
|
182
|
|
Total Nonperforming
Assets
|
$
22,291
|
|
$
21,463
|
|
$
6,860
|
|
|
|
|
|
|
|
Key Asset Quality
Ratios
|
|
|
|
|
|
|
Net Loans Charged-off
to Average Loans,
Quarter-to-date Annualized
|
0.08 %
|
|
0.05 %
|
|
0.05 %
|
|
Provision for Credit
Losses to Average Loans,
Quarter-to-date Annualized
|
0.11 %
|
|
0.07 %
|
|
0.05 %
|
|
Allowance for Credit
Losses to Period-End Loans
|
0.94 %
|
|
0.97 %
|
|
0.99 %
|
|
Allowance for Credit
Losses to Period-End Nonperforming Loans
|
142.79 %
|
|
147.82 %
|
|
491.19 %
|
|
Nonperforming Loans to
Period-End Loans
|
0.66 %
|
|
0.66 %
|
|
0.20 %
|
|
Nonperforming Assets to
Period-End Assets
|
0.51 %
|
|
0.51 %
|
|
0.16 %
|
|
|
|
|
|
|
|
Year-to-Date Period
Ended:
|
9/30/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Allowance for Credit
Losses
|
|
|
|
|
|
|
Allowance for Credit
Losses, Beginning of Year
|
$
31,265
|
|
$
29,952
|
|
$
29,952
|
|
Loans
Charged-off
|
(4,562)
|
|
(5,177)
|
|
(3,812)
|
|
Less Recoveries of
Loans Previously Charged-off
|
2,233
|
|
3,109
|
|
2,116
|
|
Net Loans
Charged-off
|
(2,329)
|
|
(2,068)
|
|
(1,696)
|
|
Provision for Credit
Losses
|
2,326
|
|
3,381
|
|
2,856
|
|
Allowance for Credit
Losses, End of Period
|
$
31,262
|
|
$
31,265
|
|
$
31,112
|
|
|
|
|
|
|
|
Key Asset Quality
Ratios
|
|
|
|
|
|
|
Net Loans Charged-off
to Average Loans, Annualized
|
0.09 %
|
|
0.07 %
|
|
0.07 %
|
|
Provision for Loan
Losses to Average Loans, Annualized
|
0.09 %
|
|
0.11 %
|
|
0.13 %
|
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multimedia:https://www.prnewswire.com/news-releases/arrow-reports-3rd-quarter-net-income-of-9-0-million-or-0-53-per-share-302292561.html
SOURCE Arrow Financial Corporation