Arrow Net Income Up 8.4%; Loans Increase 12.3%

Arrow Net Income Up 8.4%; Loans Increase 12.3%

- Second-quarter net income increased 8.4% year over year to $7.2 million.

- Second-quarter diluted earnings per share (EPS) rose 8.2% to $0.53.

- Period-end total loans reached a record high of $1.9 billion, up 12.3% year over year.

- Record high for period-end total assets of $2.7 billion.

- Continued strong ratios for profitability, asset quality and capital.

PR Newswire

GLENS FALLS, N.Y., July 20, 2017 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS: AROW) announced operating results for the three-month period ended June 30, 2017. Net income for the second quarter of 2017 was $7.2 million, an increase of $561 thousand, or 8.4%, from net income of $6.6 million a year earlier. Diluted earnings per share (EPS) for the second quarter was $0.53, an increase from $0.49 during the comparable 2016 quarter.

Our annualized key profitability ratios continue to remain strong, as measured by a return on average equity (ROE) of 12.08% and a return on average assets (ROA) of 1.08% for the second quarter, compared to 11.98% and 1.07% a year earlier.

Arrow President and CEO Thomas J. Murphy stated, "We're proud to again report a strong quarter for Arrow, including: loan growth; record highs for equity and assets; and healthy profitability and asset quality ratios. Our approach to community banking and insurance continues to deliver great results in the markets we serve, thanks to the efforts and commitment of our team."

The following expands upon our second-quarter results:

Net Interest Income: In the second quarter of 2017, our net interest income on a GAAP basis increased 7.1% to $19.2 million, compared to $18.0 million in the comparable quarter of 2016. On a tax-equivalent (non-GAAP) basis, our net interest income increased 6.9%, compared to the second quarter of 2016. Our net interest margin, measured on a tax-equivalent (non-GAAP) basis, decreased slightly to 3.17% from 3.20% in the prior-year quarter.

Loan Growth: Over the 12 months ended June 30, 2017, our total loan balance increased to a record high of $1.9 billion, up $206.1 million, or 12.3%, from a year earlier. Over the six-month period ended June 30, 2017, total loans grew $125.4 million, or 7.2%. During the second quarter of 2017, total loans grew by $67.8 million, or 3.7% as compared to the first quarter of 2017. We experienced growth in all three of our major loan segments: commercial, consumer and residential real estate.

During the second quarter of 2017, our consumer loan portfolio grew $26.8 million, or 4.9%, to $579 million at period-end. This balance exceeded the balance at June 30, 2016 by $70.2 million, or 13.8%. The increase was primarily a result of growth in our indirect automobile lending program, which generated $85.4 million in new originations in the second quarter of 2017. Total outstanding commercial loans increased 2.5% during the second quarter to $568.1 million on June 30, 2017, up $43.8 million, or 8.4%, from the balance at June 30, 2016. Our residential real estate loan portfolio increased $27.1 million, or 3.8%, during the second quarter of 2017 to $731.8 million, up $92.1 million, or 14.4% over the balance at June 30, 2016. We originated approximately $44.6 million of residential real estate loans during the second quarter of 2017, up $6.5 million, or 17.2%, over the comparable 2016 quarter.

Deposit Growth: At June 30, 2017, deposit balances reached $2.2 billion, an increase of $147.7 million, or 7.1%, from the year-earlier level. Noninterest-bearing demand deposits increased $65.1 million, or 17.7%, from the year-earlier level, which had a positive impact on net interest margin. Noninterest-bearing demand deposits represented 19.5% of total deposits at June 30, 2017, a record high and an increase of 9.6% from the June 30, 2016 level. This deposit growth is due, in part, to the strategic expansion of our branch network to the Capital District in recent years.

Assets Under Management and Related Noninterest Income: Assets under trust administration and investment management reached a record high of $1.4 billion at June 30, 2017. Assets under trust administration increased of $105.5 million, or 8.4%, from the balance at June 30, 2016, was primarily due to the performance of the equity markets. The related income from fiduciary activities between the respective six month periods increased $237 thousand, or 6.0% to $4.2 million.

Asset Quality: Asset quality remained strong at June 30, 2017, as measured by our comparatively low levels of nonperforming assets and net charge-offs. Nonperforming assets at June 30, 2017, were $8.8 million, up $0.6 million, or 6.7%, from the year-earlier level, following the 7.1% increase in total assets over the period. The period end total was up $1.6 million, or 21.9%, from the year-end 2016 level as certain categories of our portfolio, particularly automobile loans, continued to experience modest fluctuations in nonperforming loans, which, however, remain at very low levels. Our nonperforming assets remain very low, representing only 0.32% of total assets at period-end, equal to the year-earlier ratio. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.04% for the three-month period ended June 30, 2017, the same ratio as the prior-year quarter.

Our allowance for loan losses was $17.4 million at June 30, 2017, which represented 0.93% of loans outstanding. Our provision for loan losses for the second quarter of 2017 was $422 thousand, down $247 thousand from the provision for the comparable 2016 quarter.

Noninterest Income: Our noninterest income for the three-month period ended June 30, 2017 declined by 1.9% from the comparable 2016 quarter. This decline was partially driven by a write-down in the 2017 period on Other Real Estate Owned of $84 thousand. In addition, net gain on the sale of securities for the second quarter of 2017 decreased by $144 thousand. Due to strategic planning reasons, we did not sell any securities in the second quarter of 2017.

Noninterest Expense: Consistent with the 2016 period, salaries and employee benefits were the largest components of noninterest expense in the second quarter of 2017. Salaries and employee benefits increased 8.0% over the same 2016 quarter primarily as a result of a $409 thousand, or 6.5% increase in the salary expense. The increase in salary increase expense was due in part to staffing expansion and normal increases. Employee benefit expenses increased by $229 thousand or 13.6% primarily due to increases in medical plan claims.

Cash and Stock Dividends: We distributed a cash dividend of $0.25 per share to shareholders in the second quarter of 2017. The cash dividend was 3% higher than the cash dividend paid in the second quarter of 2016 when adjusted for our 3% stock dividend distributed on September 29, 2016.

Capital: Total stockholders' equity was a record $240.8 million at period-end, up $15.4 million, or 6.8%, above the prior-year amount. This increase matched the 7.1% increase in total assets over the same period. Our capital ratios remained strong in 2017. At June 30, 2017, the Company's Common Equity Tier 1 Ratio was estimated to be 12.68% and the Total Risk-Based Capital Ratio was estimated to be 14.77%. The capital levels at the Company and both its subsidiary banks continue to significantly exceed the "well capitalized" regulatory standard.

Provision for Income Taxes: The effective income tax rates for the six month periods ended June 30, 2017 and 2016 were 29.2% and 30.8%, respectively. The decrease in the 2017 period relates primarily to current accounting standards for equity compensation under which income tax benefits from stock options exercised in the period reduced our effective tax rate from the prior year period. The year to date impact on earnings per share was less than $0.01. Under the previous accounting standards, the tax benefits would have impacted equity directly.

Industry Recognition: Arrow was again named by Forbes as one of "America's 50 Most Trustworthy Financial Companies" for its accounting and governance practices in 2017. This is the sixth year Arrow has received a "Most Trustworthy" designation from Forbes.

Both of the Company's two banking subsidiaries maintained their BauerFinancial, Inc. 5-Star Superior Bank rating. Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company have continued to earn this designation for the last 41 and 33 quarters, respectively.

——————

Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc.; two property and casualty insurance agencies: Upstate Agency, LLC, and McPhillips Insurance Agency, a division of Glens Falls National Insurance Agencies, LLC; and Capital Financial Group, Inc., an insurance agency specializing in the sale and servicing of group health plans.

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 equity, return on tangible equity, tax-equivalent adjustment and related net interest income - tax equivalent, and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company'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. Our 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."

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. The Company 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 the Company's Annual Report on Form 10-K for the year ended December 31, 2016, and our other filings with the Securities and Exchange Commission.

 

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts - Unaudited)

 




















Three Months Ended June 30,


Six Months Ended June 30,



2017


2016


2017


2016

INTEREST AND DIVIDEND INCOME









Interest and Fees on Loans


$

17,295



$

15,708



$

33,697



$

30,732


Interest on Deposits at Banks


78



34



138



66


Interest and Dividends on Investment Securities:









Fully Taxable


2,013



2,018



4,003



4,105


Exempt from Federal Taxes


1,540



1,477



3,085



2,960


Total Interest and Dividend Income


20,926



19,237



40,923



37,863


INTEREST EXPENSE









Interest-Bearing Checking Accounts


381



311



712



621


Savings Deposits


316



224



607



446


Time Deposits over $250,000


66



49



121



72


Other Time Deposits


233



213



461



446


Federal Funds Purchased and

  Securities Sold Under Agreements to Repurchase


9



10



16



15


Federal Home Loan Bank Advances


506



314



951



623


Junior Subordinated Obligations Issued to

  Unconsolidated Subsidiary Trusts


188



163



367



324


Total Interest Expense


1,699



1,284



3,235



2,547


NET INTEREST INCOME


19,227



17,953



37,688



35,316


Provision for Loan Losses


422



669



780



1,070


NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES


18,805



17,284



36,908



34,246


NONINTEREST INCOME









Income From Fiduciary Activities


2,150



2,000



4,168



3,931


Fees for Other Services to Customers


2,413



2,417



4,670



4,654


Insurance Commissions


2,115



2,133



4,313



4,341


Net Gain on Securities Transactions




144





144


Net Gain on Sales of Loans


204



159



250



338


Other Operating Income


175



341



351



662


Total Noninterest Income


7,057



7,194



13,752



14,070


NONINTEREST EXPENSE









Salaries and Employee Benefits


9,084



8,408



18,092



16,530


Occupancy Expenses, Net


2,494



2,335



5,038



4,798


FDIC Assessments


228



314



454



627


Other Operating Expense


3,831



3,827



7,528



7,300


Total Noninterest Expense


15,637



14,884



31,112



29,255


INCOME BEFORE PROVISION FOR INCOME TAXES


10,225



9,594



19,548



19,061


Provision for Income Taxes


3,017



2,947



5,709



5,865


NET INCOME


$

7,208



$

6,647



$

13,839



$

13,196


Average Shares Outstanding 1:









Basic


13,485



13,372



13,485



13,357


Diluted


13,568



13,429



13,581



13,405


Per Common Share:









Basic Earnings


$

0.53



$

0.50



$

1.03



$

0.99


Diluted Earnings


0.53



0.49



1.02



0.98


1 Share and per share data have been restated for the September 29, 2016, 3% stock dividend.





 

 

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts - Unaudited)














June 30,
2017


December 31,
2016


June 30,
2016

ASSETS






Cash and Due From Banks

$

39,105



$

43,024



$

46,139


Interest-Bearing Deposits at Banks

26,972



14,331



16,976


Investment Securities:






Available-for-Sale

327,392



346,996



362,929


Held-to-Maturity (Approximate Fair Value of $350,355 at June 30, 2017;
$343,751 at December 31, 2016; and $354,778 at June 30, 2016)

348,018



345,427



343,814


Other Investments

11,035



10,912



9,961


Loans

1,878,632



1,753,268



1,672,490


Allowance for Loan Losses

(17,442)



(17,012)



(16,798)


Net Loans

1,861,190



1,736,256



1,655,692


Premises and Equipment, Net

26,565



26,938



26,775


Goodwill

21,873



21,873



21,873


Other Intangible Assets, Net

2,482



2,696



2,885


Other Assets

57,089



56,789



53,198


Total Assets

$

2,721,721



$

2,605,242



$

2,540,242


LIABILITIES






Noninterest-Bearing Deposits

$

433,480



$

387,280



$

368,378


Interest-Bearing Checking Accounts

905,624



877,988



900,974


Savings Deposits

679,320



651,965



600,513


Time Deposits over $250,000

33,630



32,878



37,297


Other Time Deposits

167,984



166,435



165,223


Total Deposits

2,220,038



2,116,546



2,072,385


Federal Funds Purchased and

  Securities Sold Under Agreements to Repurchase

40,892



35,836



41,497


Federal Home Loan Bank Overnight Advances

122,000



123,000



102,000


Federal Home Loan Bank Term Advances

55,000



55,000



55,000


Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts

20,000



20,000



20,000


Other Liabilities

23,039



22,008



23,987


Total Liabilities

2,480,969



2,372,390



2,314,869


STOCKHOLDERS' EQUITY






Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized






Common Stock, $1 Par Value; 20,000,000 Shares Authorized (17,943,201
Shares Issued and Outstanding at June 30, 2017; 17,943,201 at
December 31, 2016 and 17,420,776 at June 30, 2016)

17,943



17,943



17,421


Additional Paid-in Capital

272,187



270,880



252,511


Retained Earnings

35,739



28,644



38,852


Unallocated ESOP Shares (19,466 Shares at June 30, 2017; 19,466 Shares
at December 31, 2016 and 28,671 Shares at June 30, 2016)

(400)



(400)



(850)


Accumulated Other Comprehensive Loss

(6,200)



(6,834)



(4,742)


Treasury Stock, at Cost (4,428,713 Shares at June 30, 2017; 4,441,093
Shares at December 31, 2016 and 4,380,736 Shares at June 30, 2016)

(78,517)



(77,381)



(77,819)


Total Stockholders' Equity

240,752



232,852



225,373


Total Liabilities and Stockholders' Equity

$

2,721,721



$

2,605,242



$

2,540,242


 

 

Arrow Financial Corporation

Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)





















Quarter Ended

6/30/2017



3/31/2017



12/31/2016



9/30/2016



6/30/2016


Net Income

7,208



6,631



6,600



6,738



6,647


Transactions Recorded in Net Income (Net of Tax):










Net (Loss) Gain on Securities Transactions





(101)





88












Share and Per Share Data:1










Period End Shares Outstanding

13,495



13,481



13,483



13,426



13,388


Basic Average Shares Outstanding

13,485



13,484



13,441



13,407



13,372


Diluted Average Shares Outstanding

13,568



13,594



13,565



13,497



13,429


Basic Earnings Per Share

$

0.53



$

0.49



$

0.49



$

0.50



$

0.50


Diluted Earnings Per Share

0.53



0.49



0.49



0.50



0.49


Cash Dividend Per Share

0.250



0.250



0.250



0.243



0.243












Selected Quarterly Average Balances:










  Interest-Bearing Deposits at Banks

24,480



23,565



34,731



21,635



22,195


  Investment Securities

684,570



695,615



684,906



696,712



701,526


  Loans

1,842,543



1,781,113



1,726,738



1,680,850



1,649,401


  Deposits

2,206,365



2,161,798



2,160,156



2,063,832



2,082,449


  Other Borrowed Funds

207,270



205,436



157,044



209,946



165,853


  Shareholders' Equity

239,396



235,257



230,198



228,048



223,234


  Total Assets

2,677,843



2,626,470



2,572,425



2,528,124



2,496,795


Return on Average Assets, annualized

1.08

%


1.02

%


1.02

%


1.06

%


1.07

%

Return on Average Equity, annualized

12.08

%


11.43

%


11.41

%


11.75

%


11.98

%

Return on Tangible Equity, annualized 2

13.45

%


12.76

%


12.77

%


13.18

%


13.47

%

Average Earning Assets

2,551,593



2,500,293



2,446,375



2,399,197



2,373,122


Average Paying Liabilities

2,005,421



1,977,628



1,933,974



1,892,583



1,891,017


Interest Income, Tax-Equivalent3

21,875



20,945



20,709



20,222



20,154


Interest Expense

1,699



1,536



1,404



1,405



1,284


Net Interest Income, Tax-Equivalent3

20,176



19,409



19,305



18,817



18,870


Tax-Equivalent Adjustment3

949



948



939



940



917


Net Interest Margin, annualized 3

3.17

%


3.15

%


3.14

%


3.12

%


3.20

%











Efficiency Ratio Calculation: 4










Noninterest Expense

15,637



15,475



15,272



15,082



14,884


Less: Intangible Asset Amortization

70



71



73



74



74


Net Noninterest Expense

15,567



15,404



15,199



15,008



14,810


Net Interest Income, Tax-Equivalent

20,176



19,409



19,305



18,817



18,870


Noninterest Income

7,057



6,695



6,648



7,114



7,194


Less: Net Securities (Loss) Gain





(166)





144


Net Gross Income

27,233



26,104



26,119



25,931



25,920


Efficiency Ratio

57.16

%


59.01

%


58.19

%


57.88

%


57.14

%











Period-End Capital Information:










Total Stockholders' Equity (i.e. Book Value)

240,752



236,111



232,852



229,208



225,373


Book Value per Share 1

17.84



17.51



17.27



17.07



16.83


Goodwill and Other Intangible Assets, net

24,355



24,448



24,569



24,675



24,758


Tangible Book Value per Share 1,2

16.04



15.70



15.45



15.23



14.98












Capital Ratios:5










Tier 1 Leverage Ratio

9.35

%


9.37

%


9.47

%


9.44

%


9.37

%

Common Equity Tier 1 Capital Ratio 

12.68

%


12.84

%


12.97

%


12.80

%


12.74

%

Tier 1 Risk-Based Capital Ratio

13.79

%


13.99

%


14.14

%


13.98

%


13.95

%

Total Risk-Based Capital Ratio

14.77

%


14.98

%


15.15

%


14.99

%


14.96

%











Assets Under Trust Administration

  and Investment Management

$

1,356,262



$

1,333,690



$

1,301,408



$

1,284,051



$

1,250,770


 

 

Arrow Financial Corporation

Selected Quarterly Information - Continued

(Dollars In Thousands, Except Per Share Amounts - Unaudited)























Footnotes:




















1.

Share and Per Share Data have been restated for the September 29, 2016, 3% stock dividend.



2.

Tangible Book Value and 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.





6/30/2017


3/31/2017


12/31/2016


9/30/2016


6/30/2016


Total Stockholders' Equity (GAAP)

240,752



236,111



232,852



229,208



225,373



Less: Goodwill and Other Intangible assets, net

24,355



24,448



24,569



24,675



24,758



Tangible Equity (Non-GAAP)

$

216,397



$

211,663



$

208,283



$

204,533



$

200,615














Period End Shares Outstanding

13,495



13,481



13,483



13,426



13,388



Tangible Book Value per Share (Non-GAAP)

$

16.04



$

15.70



$

15.45



$

15.23



$

14.98













3.

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.





6/30/2017


3/31/2017


12/31/2016


9/30/2016


6/30/2016


Net Interest Income (GAAP)

19,227



18,461



18,366



17,877



17,953



Add: Tax-Equivalent adjustment (Non-GAAP)

949



948



939



940



917



Net Interest Income - Tax Equivalent (Non-GAAP)

$

20,176



$

19,409



$

19,305



$

18,817



$

18,870



Average Earning Assets

2,551,593



2,500,293



2,446,375



2,399,197



2,373,122



Net Interest Margin (Non-GAAP)*

3.17

%


3.15

%


3.14

%


3.12

%


3.20

%












4.

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).












5.

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 June 30, 2017 CET1 ratio listed in the tables (i.e., 12.68%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).





6/30/2017


3/31/2017


12/31/2016


9/30/2016


6/30/2016


Total Risk Weighted Assets

1,802,455



1,747,318



1,707,829



1,690,646



1,662,381



Common Equity Tier 1 Capital

228,586



224,369



221,472



216,382



211,801



Common Equity Tier 1 Ratio

12.68

%


12.84

%


12.97

%


12.80

%


12.74

%


















* Quarterly ratios have been annualized















            

 

Arrow Financial Corporation

Consolidated Financial Information

(Dollars in Thousands - Unaudited)













Quarter Ended:

06/30/2017


12/31/2016


6/30/2016

Loan Portfolio






Commercial Loans

$

126,259



$

105,155



$

106,651


Commercial Real Estate Loans

441,809



431,646



417,612


  Subtotal Commercial Loan Portfolio

568,068



536,801



524,263


Consumer Loans

578,754



537,361



508,538


Residential Real Estate Loans

731,810



679,106



639,689


Total Loans

$

1,878,632



$

1,753,268



$

1,672,490


Allowance for Loan Losses






Allowance for Loan Losses, Beginning of Quarter

$

17,216



$

16,975



$

16,287


Loans Charged-off

(305)



(486)



(201)


Less Recoveries of Loans Previously Charged-off

109



40



43


Net Loans Charged-off

(196)



(446)



(158)


Provision for Loan Losses

422



483



669


Allowance for Loan Losses, End of Quarter

$

17,442



$

17,012



$

16,798


Nonperforming Assets






Nonaccrual Loans

$

5,222



$

4,193



$

6,705


Loans Past Due 90 or More Days and Accruing

1,821



1,201



456


Loans Restructured and in Compliance with Modified Terms

101



106



111


Total Nonperforming Loans

7,144



5,500



7,272


Repossessed Assets

90



101



47


Other Real Estate Owned

1,523



1,585



885


Total Nonperforming Assets

$

8,757



$

7,186



$

8,204


Key Asset Quality Ratios






Net Loans Charged-off to Average Loans,

   Quarter-to-date Annualized

0.04

%


0.10

%


0.04

%

Provision for Loan Losses to Average Loans,

  Quarter-to-date Annualized

0.09

%


0.11

%


0.16

%

Allowance for Loan Losses to Period-End Loans

0.93

%


0.97

%


1.00

%

Allowance for Loan Losses to Period-End Nonperforming Loans

244.15

%


309.31

%


231.00

%

Nonperforming Loans to Period-End Loans

0.38

%


0.31

%


0.43

%

Nonperforming Assets to Period-End Assets

0.32

%


0.28

%


0.32

%

Six-Month Period Ended:






Allowance for Loan Losses






Allowance for Loan Losses, Beginning of Year

$

17,012





$

16,038


Loans Charged-off

(574)





(417)


Less Recoveries of Loans Previously Charged-off

224





107


Net Loans Charged-off

(350)





(310)


Provision for Loan Losses

780





1,070


Allowance for Loan Losses, End of Period

$

17,442





$

16,798


Key Asset Quality Ratios






Net Loans Charged-off to Average Loans, Annualized

0.04

%




0.04

%

Provision for Loan Losses to Average Loans, Annualized

0.09

%




0.13

%

 

View original content:http://www.prnewswire.com/news-releases/arrow-net-income-up-84-loans-increase-123-300491654.html

SOURCE Arrow Financial Corporation

Copyright CNW Group 2017