PR Newswire
GLENS FALLS, N.Y., Oct. 24, 2023
GLENS FALLS, N.Y., Oct. 24, 2023 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow") announced financial results for the three-month period ended September 30, 2023. Net income for the third quarter of 2023 was $7.7 million and fully diluted earnings per share was $0.46. Nonperforming assets decreased $0.2 million in the third quarter to 0.16% of assets, with the allowance for credit losses reaching 491% of nonperforming loans.
Arrow President and CEO David S. DeMarco:
"This quarter, we continued to experience substantial loan growth with asset and deposit balances at or near record highs. We also continued our pattern of issuing cash and stock dividends, underscoring our dedication to creating value for our shareholders. As we move ahead, Arrow expects to restart our Dividend Reinvestment Plan.
We were proud to officially open our renovated downtown Glens Falls campus and Main Office branch this summer. Glens Falls has been our home for much of our 172-year history, and we are excited about the positive impact this will have on all our stakeholders. As always, we are focused on enhancing the customer experience and optimizing our operations while supporting our exceptional team."
This Earnings Release and related commentary should be read in conjunction with our October 24, 2023 Form 8-K and related Third Quarter 2023 Investor Presentation, which can also be found on our website: arrowfinancial.com/investor-presentations.
Third-Quarter Highlights and Key Metrics
Income Statement
Three Months Ended | |||||
(Dollars in Thousands) | |||||
September 30, | June 30, 2023 | September 30, | |||
Interest and Dividend Income | $ 42,117 | $ 40,013 | $ 34,207 | ||
Interest Expense | 16,764 | 14,241 | 3,306 | ||
Net Interest Income | 25,353 | 25,772 | 30,901 | ||
Average Earning Assets(1) | 3,973,747 | 3,953,642 | 3,902,119 | ||
Average Interest-Bearing Liabilities | 2,920,518 | 2,924,743 | 2,781,985 | ||
Yield on Earning Assets(1) | 4.20 % | 4.06 % | 3.48 % | ||
Cost of Interest-Bearing Liabilities | 2.28 | 1.95 | 0.47 | ||
Net Interest Spread | 1.92 | 2.11 | 3.01 | ||
Net Interest Margin | 2.53 | 2.61 | 3.14 | ||
Income Earned on PPP Loans included in Net Interest Income | $ — | $ — | $ 70 | ||
Net Interest Income excluding PPP loans | 25,353 | 25,772 | 30,831 | ||
Net Interest Margin excluding PPP loans | 2.53 % | 2.61 % | 3.14 % | ||
(1) Includes Nonaccrual Loans. | |||||
Balance Sheet
Additional Commentary
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. 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 2022 Form 10-K and other filings with the SEC.
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||
Three Months Ended | Nine Months Ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
INTEREST AND DIVIDEND INCOME | ||||||||
Interest and Fees on Loans | $ 36,699 | $ 29,618 | $ 103,203 | $ 82,263 | ||||
Interest on Deposits at Banks | 1,805 | 1,201 | 3,958 | 1,826 | ||||
Interest and Dividends on Investment Securities: | ||||||||
Fully Taxable | 2,924 | 2,603 | 8,823 | 7,236 | ||||
Exempt from Federal Taxes | 689 | 785 | 2,256 | 2,422 | ||||
Total Interest and Dividend Income | 42,117 | 34,207 | 118,240 | 93,747 | ||||
INTEREST EXPENSE | ||||||||
Interest-Bearing Checking Accounts | 1,156 | 267 | 2,346 | 629 | ||||
Savings Deposits | 9,729 | 2,469 | 23,830 | 3,778 | ||||
Time Deposits over $250,000 | 1,466 | 89 | 3,159 | 143 | ||||
Other Time Deposits | 2,051 | 150 | 3,721 | 370 | ||||
Borrowings | 2,143 | 110 | 5,309 | 405 | ||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 173 | 173 | 513 | 513 | ||||
Interest on Financing Leases | 46 | 48 | 143 | 145 | ||||
Total Interest Expense | 16,764 | 3,306 | 39,021 | 5,983 | ||||
NET INTEREST INCOME | 25,353 | 30,901 | 79,219 | 87,764 | ||||
Provision for Credit Losses | 354 | 1,715 | 2,856 | 3,389 | ||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 24,999 | 29,186 | 76,363 | 84,375 | ||||
NON-INTEREST INCOME | ||||||||
Income From Fiduciary Activities | 2,378 | 2,341 | 7,081 | 7,454 | ||||
Fees for Other Services to Customers | 2,761 | 3,071 | 8,073 | 8,916 | ||||
Insurance Commissions | 1,695 | 1,650 | 4,775 | 4,783 | ||||
Net Gain (Loss) on Securities | 71 | 95 | (214) | 379 | ||||
Net Gain on Sales of Loans | 21 | 18 | 25 | 80 | ||||
Other Operating Income | 1,124 | 652 | 1,893 | 2,121 | ||||
Total Non-Interest Income | 8,050 | 7,827 | 21,633 | 23,733 | ||||
NON-INTEREST EXPENSE | ||||||||
Salaries and Employee Benefits | 11,988 | 12,427 | 35,974 | 35,400 | ||||
Occupancy Expenses, Net | 1,517 | 1,521 | 4,728 | 4,721 | ||||
Technology and Equipment Expense | 4,371 | 4,049 | 13,150 | 11,802 | ||||
FDIC Assessments | 515 | 295 | 1,478 | 893 | ||||
Other Operating Expense | 5,088 | 3,156 | 14,528 | 7,922 | ||||
Total Non-Interest Expense | 23,479 | 21,448 | 69,858 | 60,738 | ||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 9,570 | 15,565 | 28,138 | 47,370 | ||||
Provision for Income Taxes | 1,827 | 3,402 | 5,786 | 10,658 | ||||
NET INCOME | $ 7,743 | $ 12,163 | $ 22,352 | $ 36,712 | ||||
Average Shares Outstanding 1: | ||||||||
Basic | 17,050 | 17,007 | 17,049 | 17,001 | ||||
Diluted | 17,050 | 17,054 | 17,049 | 17,050 | ||||
Per Common Share: | ||||||||
Basic Earnings | $ 0.46 | $ 0.72 | $ 1.31 | $ 2.16 | ||||
Diluted Earnings | 0.46 | 0.72 | 1.31 | 2.15 | ||||
1 Share and Per Share Amounts have been restated for the September 26, 2023, 3% stock dividend. |
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES | |||||
September 30, | December 31, | September 30, | |||
ASSETS | |||||
Cash and Due From Banks | $ 39,778 | $ 31,886 | $ 44,872 | ||
Interest-Bearing Deposits at Banks | 254,961 | 32,774 | 328,557 | ||
Investment Securities: | |||||
Available-for-Sale at Fair Value | 519,240 | 573,495 | 575,054 | ||
Held-to-Maturity (Fair Value of $134,811 at September 30, | 140,577 | 175,364 | 182,178 | ||
Equity Securities | 1,960 | 2,174 | 2,126 | ||
FHLB and Federal Reserve Bank Stock | 5,110 | 6,064 | 4,720 | ||
Loans | 3,138,617 | 2,983,207 | 2,924,794 | ||
Allowance for Credit Losses | (31,112) | (29,952) | (29,232) | ||
Net Loans | 3,107,505 | 2,953,255 | 2,895,562 | ||
Premises and Equipment, Net | 60,311 | 56,491 | 54,015 | ||
Goodwill | 21,873 | 21,873 | 21,873 | ||
Other Intangible Assets, Net | 1,205 | 1,500 | 1,604 | ||
Other Assets | 120,391 | 114,633 | 122,217 | ||
Total Assets | $ 4,272,911 | $ 3,969,509 | $ 4,232,778 | ||
LIABILITIES | |||||
Noninterest-Bearing Deposits | 798,392 | 836,871 | 910,221 | ||
Interest-Bearing Checking Accounts | 920,250 | 997,694 | 1,113,850 | ||
Savings Deposits | 1,496,193 | 1,454,364 | 1,584,373 | ||
Time Deposits over $250,000 | 167,614 | 76,224 | 59,059 | ||
Other Time Deposits | 284,036 | 133,211 | 127,602 | ||
Total Deposits | 3,666,485 | 3,498,364 | 3,795,105 | ||
Borrowings | 174,300 | 54,800 | 25,000 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | ||
Finance Leases | 5,080 | 5,119 | 5,131 | ||
Other Liabilities | 47,032 | 37,688 | 41,992 | ||
Total Liabilities | 3,912,897 | 3,615,971 | 3,887,228 | ||
STOCKHOLDERS' EQUITY | |||||
Preferred Stock, $1 Par Value and 1,000,000 Shares | — | — | — | ||
Common Stock, $1 Par Value; 30,000,000 Shares | 22,067 | 21,424 | 21,424 | ||
Additional Paid-in Capital | 412,397 | 400,270 | 399,461 | ||
Retained Earnings | 62,647 | 65,401 | 57,778 | ||
Accumulated Other Comprehensive Loss | (52,584) | (49,655) | (49,070) | ||
Treasury Stock, at Cost (5,017,063 Shares at September 30, | (84,513) | (83,902) | (84,043) | ||
Total Stockholders' Equity | 360,014 | 353,538 | 345,550 | ||
Total Liabilities and Stockholders' Equity | $ 4,272,911 | $ 3,969,509 | $ 4,232,778 |
Arrow Financial Corporation | |||||||||
Quarter Ended | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||
Net Income | $ 7,743 | $ 6,047 | $ 8,562 | $ 12,087 | $ 12,163 | ||||
Transactions in Net Income (Net of Tax): | |||||||||
Net Changes in Fair Value of Equity Investments | 52 | (133) | (76) | 35 | 70 | ||||
Share and Per Share Data:1 | |||||||||
Period End Shares Outstanding | 17,049 | 17,050 | 17,050 | 17,048 | 17,019 | ||||
Basic Average Shares Outstanding | 17,050 | 17,050 | 17,048 | 17,031 | 17,007 | ||||
Diluted Average Shares Outstanding | 17,050 | 17,050 | 17,060 | 17,087 | 17,054 | ||||
Basic Earnings Per Share | $ 0.46 | $ 0.35 | $ 0.50 | $ 0.71 | $ 0.72 | ||||
Diluted Earnings Per Share | 0.46 | 0.35 | 0.50 | 0.71 | 0.72 | ||||
Cash Dividend Per Share | 0.262 | 0.262 | 0.262 | 0.262 | 0.255 | ||||
Selected Quarterly Average Balances: | |||||||||
Interest-Bearing Deposits at Banks | $ 131,814 | $ 130,057 | $ 40,436 | $ 143,499 | $ 209,001 | ||||
Investment Securities | 745,693 | 787,175 | 813,461 | 845,859 | 821,052 | ||||
Loans | 3,096,240 | 3,036,410 | 2,991,928 | 2,951,547 | 2,872,066 | ||||
Deposits | 3,491,028 | 3,460,711 | 3,480,279 | 3,614,945 | 3,598,519 | ||||
Other Borrowed Funds | 208,527 | 220,616 | 100,596 | 63,304 | 50,125 | ||||
Shareholders' Equity | 362,701 | 365,070 | 359,556 | 351,402 | 361,675 | ||||
Total Assets | 4,109,995 | 4,087,653 | 3,978,851 | 4,074,028 | 4,047,738 | ||||
Return on Average Assets, annualized | 0.75 % | 0.59 % | 0.87 % | 1.18 % | 1.19 % | ||||
Return on Average Equity, annualized | 8.47 % | 6.64 % | 9.66 % | 13.65 % | 13.34 % | ||||
Return on Average Tangible Equity, annualized 2 | 9.05 % | 7.10 % | 10.33 % | 14.62 % | 14.27 % | ||||
Average Earning Assets | $ 3,973,747 | $ 3,953,642 | $ 3,845,825 | $ 3,940,905 | $ 3,902,119 | ||||
Average Paying Liabilities | 2,920,518 | 2,924,743 | 2,782,299 | 2,891,092 | 2,781,985 | ||||
Interest Income | 42,117 | 40,013 | 36,110 | 35,904 | 34,207 | ||||
Tax-Equivalent Adjustment 3 | 183 | 196 | 202 | 279 | 268 | ||||
Interest Income, Tax-Equivalent 3 | 42,300 | 40,209 | 36,312 | 36,183 | 34,475 | ||||
Interest Expense | 16,764 | 14,241 | 8,016 | 5,325 | 3,306 | ||||
Net Interest Income | 25,353 | 25,772 | 28,094 | 30,579 | 30,901 | ||||
Net Interest Income, Tax-Equivalent 3 | 25,536 | 25,968 | 28,296 | 30,858 | 31,169 | ||||
Net Interest Margin, annualized | 2.53 % | 2.61 % | 2.96 % | 3.08 % | 3.14 % | ||||
Net Interest Margin, Tax-Equivalent, annualized 3 | 2.55 % | 2.63 % | 2.98 % | 3.11 % | 3.17 % | ||||
Efficiency Ratio Calculation: 4 | |||||||||
Non-Interest Expense | $ 23,479 | $ 24,083 | $ 22,296 | $ 20,792 | $ 21,448 | ||||
Less: Intangible Asset Amortization | 43 | 44 | 45 | 47 | 48 | ||||
Net Non-Interest Expense | $ 23,436 | $ 24,039 | $ 22,251 | $ 20,745 | $ 21,400 | ||||
Net Interest Income, Tax-Equivalent | $ 25,536 | $ 25,968 | $ 28,296 | $ 30,858 | $ 31,169 | ||||
Non-Interest Income | 8,050 | 6,906 | 6,677 | 7,165 | 7,827 | ||||
Less: Net Gain (Loss) on Securities | 71 | (181) | (104) | 48 | 95 | ||||
Net Gross Income | $ 33,515 | $ 33,055 | $ 35,077 | $ 37,975 | $ 38,901 | ||||
Efficiency Ratio | 69.93 % | 72.72 % | 63.43 % | 54.63 % | 55.01 % | ||||
Period-End Capital Information: | |||||||||
Total Stockholders' Equity (i.e. Book Value) | $ 360,014 | $ 361,443 | $ 363,371 | $ 353,538 | $ 345,550 | ||||
Book Value per Share 1 | 21.12 | 21.20 | 21.31 | 20.74 | 20.30 | ||||
Goodwill and Other Intangible Assets, net | 23,078 | 23,175 | 23,273 | 23,373 | 23,477 | ||||
Tangible Book Value per Share 1,2 | 19.76 | 19.84 | 19.95 | 19.37 | 18.92 | ||||
Capital Ratios:5 | |||||||||
Tier 1 Leverage Ratio | 9.94 % | 9.92 % | 10.13 % | 9.80 % | 9.71 % | ||||
Common Equity Tier 1 Capital Ratio | 13.17 % | 13.27 % | 13.34 % | 13.32 % | 13.14 % | ||||
Tier 1 Risk-Based Capital Ratio | 13.84 % | 13.96 % | 14.03 % | 14.01 % | 13.85 % | ||||
Total Risk-Based Capital Ratio | 14.94 % | 15.08 % | 15.15 % | 15.11 % | 14.93 % | ||||
Assets Under Trust Admin. & Investment Mgmt. | $ 1,627,522 | $ 1,711,460 | $ 1,672,117 | $ 1,606,132 | $ 1,515,994 |
Arrow Financial Corporation | ||||||||||
Footnotes: | ||||||||||
1. | Share and Per Share Data have been restated for the September 26, 2023, 3% stock dividend. | |||||||||
2. | Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, and Return on Tangible Equity | |||||||||
9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||||
Total Stockholders' Equity (GAAP) | $ 360,014 | $ 361,443 | $ 363,371 | $ 353,538 | $ 345,550 | |||||
Less: Goodwill and Other Intangible assets, net | 23,078 | 23,175 | 23,273 | 23,373 | 23,477 | |||||
Tangible Equity (Non-GAAP) | $ 336,936 | $ 338,268 | $ 340,098 | $ 330,165 | $ 322,073 | |||||
Period End Shares Outstanding | 17,049 | 17,050 | 17,050 | 17,048 | 17,019 | |||||
Tangible Book Value per Share (Non-GAAP) | $ 19.76 | $ 19.84 | $ 19.95 | $ 19.37 | $ 18.92 | |||||
Net Income | 7,743 | 6,047 | 8,562 | 12,087 | 12,163 | |||||
Return on Average Tangible Equity (Net Income/Tangible Equity - Annualized) | 9.05 % | 7.10 % | 10.33 % | 14.62 % | 14.27 % | |||||
3. | Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of annualized tax-equivalent net | |||||||||
9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||||
Interest Income (GAAP) | $ 42,117 | $ 40,013 | $ 36,110 | $ 35,904 | $ 34,207 | |||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 183 | 196 | 202 | 279 | 268 | |||||
Interest Income - Tax Equivalent (Non-GAAP) | $ 42,300 | $ 40,209 | $ 36,312 | $ 36,183 | $ 34,475 | |||||
Net Interest Income (GAAP) | $ 25,353 | $ 25,772 | $ 28,094 | $ 30,579 | $ 30,901 | |||||
Add: Tax-Equivalent adjustment (Non-GAAP) | 183 | 196 | 202 | 279 | 268 | |||||
Net Interest Income - Tax Equivalent (Non-GAAP) | $ 25,536 | $ 25,968 | $ 28,296 | $ 30,858 | $ 31,169 | |||||
Average Earning Assets | $ 3,973,747 | $ 3,953,642 | $ 3,845,825 | $ 3,940,905 | $ 3,902,119 | |||||
Net Interest Margin (Non-GAAP)* | 2.55 % | 2.63 % | 2.98 % | 3.11 % | 3.17 % | |||||
4. | Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP | |||||||||
5. | For the current quarter, all of the regulatory capital ratios as well as the Total Risk-Weighted Assets are calculated | |||||||||
9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||||
Total Risk Weighted Assets | $ 2,988,438 | $ 2,937,837 | $ 2,909,610 | $ 2,883,902 | $ 2,856,224 | |||||
Common Equity Tier 1 Capital | 393,541 | 389,966 | 388,228 | 384,003 | 375,394 | |||||
Common Equity Tier 1 Ratio | 13.17 % | 13.27 % | 13.34 % | 13.32 % | 13.14 % | |||||
* Quarterly ratios have been annualized. |
Arrow Financial Corporation | |||||||||||
Quarter Ended: | September 30, 2023 | September 30, 2022 | |||||||||
Interest | Rate | Interest | Rate | ||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||
Interest-Bearing Deposits at Banks | $ 131,814 | $ 1,805 | 5.43 % | $ 209,001 | $ 1,201 | 2.28 % | |||||
Investment Securities: | |||||||||||
Fully Taxable | 616,020 | 2,924 | 1.88 | 651,899 | 2,603 | 1.58 | |||||
Exempt from Federal Taxes | 129,673 | 689 | 2.11 | 169,153 | 785 | 1.84 | |||||
Loans | 3,096,240 | 36,699 | 4.70 | 2,872,066 | 29,618 | 4.09 | |||||
Total Earning Assets | 3,973,747 | 42,117 | 4.20 | 3,902,119 | 34,207 | 3.48 | |||||
Allowance for Credit Losses | (31,386) | (28,006) | |||||||||
Cash and Due From Banks | 32,874 | 32,475 | |||||||||
Other Assets | 134,760 | 141,150 | |||||||||
Total Assets | $ 4,109,995 | $ 4,047,738 | |||||||||
Deposits: | |||||||||||
Interest-Bearing Checking Accounts | $ 795,627 | 1,156 | 0.58 | $ 996,116 | 267 | 0.11 | |||||
Savings Deposits | 1,505,916 | 9,729 | 2.56 | 1,549,451 | 2,469 | 0.63 | |||||
Time Deposits of $250,000 or More | 152,738 | 1,466 | 3.81 | 49,459 | 89 | 0.71 | |||||
Other Time Deposits | 257,710 | 2,051 | 3.16 | 136,834 | 150 | 0.43 | |||||
Total Interest-Bearing Deposits | 2,711,991 | 14,402 | 2.11 | 2,731,860 | 2,975 | 0.43 | |||||
Borrowings | 183,452 | 2,143 | 4.63 | — | — | ||||||
Junior Subordinated Obligations Issued to | 20,000 | 173 | 3.43 | 45,000 | 283 | 2.50 | |||||
Finance Leases | 5,075 | 46 | 3.60 | 5,125 | 48 | 3.72 | |||||
Total Interest-Bearing Liabilities | 2,920,518 | 16,764 | 2.28 | 2,781,985 | 3,306 | 0.47 | |||||
Noninterest-Bearing Deposits | 779,037 | 866,659 | |||||||||
Other Liabilities | 47,739 | 37,419 | |||||||||
Total Liabilities | 3,747,294 | 3,686,063 | |||||||||
Stockholders' Equity | 362,701 | 361,675 | |||||||||
Total Liabilities and Stockholders' Equity | $ 4,109,995 | $ 4,047,738 | |||||||||
Net Interest Income | $ 25,353 | $ 30,901 | |||||||||
Net Interest Spread | 1.92 % | 3.01 % | |||||||||
Net Interest Margin | 2.53 % | 3.14 % |
Arrow Financial Corporation | |||||||||||
Quarter Ended: | September 30, 2023 | June 30, 2023 | |||||||||
Interest | Rate | Interest | Rate | ||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | ||||||
Balance | Expense | Paid | Balance | Expense | Paid | ||||||
Interest-Bearing Deposits at Banks | $ 131,814 | $ 1,805 | 5.43 % | $ 130,057 | $ 1,674 | 5.16 % | |||||
Investment Securities: | |||||||||||
Fully Taxable | 616,020 | 2,924 | 1.88 | 637,018 | 2,951 | 1.86 | |||||
Exempt from Federal Taxes | 129,673 | 689 | 2.11 | 150,157 | 770 | 2.06 | |||||
Loans | 3,096,240 | 36,699 | 4.70 | 3,036,410 | 34,618 | 4.57 | |||||
Total Earning Assets | 3,973,747 | 42,117 | 4.20 | 3,953,642 | 40,013 | 4.06 | |||||
Allowance for Credit Losses | (31,386) | (30,577) | |||||||||
Cash and Due From Banks | 32,874 | 28,742 | |||||||||
Other Assets | 134,760 | 135,846 | |||||||||
Total Assets | $ 4,109,995 | $ 4,087,653 | |||||||||
Deposits: | |||||||||||
Interest-Bearing Checking Accounts | $ 795,627 | 1,156 | 0.58 | $ 863,892 | 820 | 0.38 | |||||
Savings Deposits | 1,505,916 | 9,729 | 2.56 | 1,504,412 | 8,514 | 2.27 | |||||
Time Deposits of $250,000 or More | 152,738 | 1,466 | 3.81 | 133,897 | 1,119 | 3.35 | |||||
Other Time Deposits | 257,710 | 2,051 | 3.16 | 201,926 | 1,196 | 2.38 | |||||
Total Interest-Bearing Deposits | 2,711,991 | 14,402 | 2.11 | 2,704,127 | 11,649 | 1.73 | |||||
Borrowings | 183,452 | 2,143 | 4.63 | 195,527 | 2,373 | 4.87 | |||||
Junior Subordinated Obligations Issued to | 20,000 | 173 | 3.43 | 20,000 | 171 | 3.43 | |||||
Finance Leases | 5,075 | 46 | 3.60 | 5,089 | 48 | 3.78 | |||||
Total Interest-Bearing Liabilities | 2,920,518 | 16,764 | 2.28 | 2,924,743 | 14,241 | 1.95 | |||||
Noninterest-bearing deposits | 779,037 | 756,584 | |||||||||
Other Liabilities | 47,739 | 41,256 | |||||||||
Total Liabilities | 3,747,294 | 3,722,583 | |||||||||
Stockholders' Equity | 362,701 | 365,070 | |||||||||
Total Liabilities and Stockholders' Equity | $ 4,109,995 | $ 4,087,653 | |||||||||
Net Interest Income | $ 25,353 | $ 25,772 | |||||||||
Net Interest Spread | 1.92 % | 2.11 % | |||||||||
Net Interest Margin | 2.53 % | 2.61 % |
Arrow Financial Corporation | |||||
Quarter Ended: | 9/30/2023 | 12/31/2022 | 9/30/2022 | ||
Loan Portfolio | |||||
Commercial Loans | $ 148,066 | $ 140,293 | $ 138,973 | ||
Commercial Real Estate Loans | 734,604 | 707,022 | 679,217 | ||
Subtotal Commercial Loan Portfolio | 882,670 | 847,315 | 818,190 | ||
Consumer Loans | 1,107,638 | 1,065,135 | 1,055,585 | ||
Residential Real Estate Loans | 1,148,309 | 1,070,757 | 1,051,019 | ||
Total Loans | $ 3,138,617 | $ 2,983,207 | $ 2,924,794 | ||
Allowance for Credit Losses | |||||
Allowance for Credit Losses, Beginning of Quarter | $ 31,170 | $ 29,232 | $ 28,090 | ||
Loans Charged-off | (1,204) | (1,261) | (1,147) | ||
Less Recoveries of Loans Previously Charged-off | 792 | 572 | 574 | ||
Net Loans Charged-off | (412) | (689) | (573) | ||
Provision for Credit Losses | 354 | 1,409 | 1,715 | ||
Allowance for Credit Losses, End of Quarter | $ 31,112 | $ 29,952 | $ 29,232 | ||
Nonperforming Assets | |||||
Nonaccrual Loans | $ 6,023 | $ 10,757 | $ 8,812 | ||
Loans Past Due 90 or More Days and Accruing | 251 | 1,157 | 514 | ||
Loans Restructured and in Compliance with Modified Terms | 60 | 69 | 82 | ||
Total Nonperforming Loans | 6,334 | 11,983 | 9,408 | ||
Repossessed Assets | 344 | 593 | 604 | ||
Other Real Estate Owned | 182 | — | — | ||
Total Nonperforming Assets | $ 6,860 | $ 12,576 | $ 10,012 | ||
Key Asset Quality Ratios | |||||
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized | 0.05 % | 0.09 % | 0.08 % | ||
Provision for Credit Losses to Average Loans, Quarter-to-date Annualized | 0.05 % | 0.19 % | 0.24 % | ||
Allowance for Credit Losses to Period-End Loans | 0.99 % | 1.00 % | 1.00 % | ||
Allowance for Credit Losses to Period-End Nonperforming Loans | 491.19 % | 249.95 % | 310.71 % | ||
Nonperforming Loans to Period-End Loans | 0.20 % | 0.40 % | 0.32 % | ||
Nonperforming Assets to Period-End Assets | 0.16 % | 0.32 % | 0.24 % | ||
Year-to-Date Period Ended: | 9/30/2023 | 12/31/2022 | 9/30/2022 | ||
Allowance for Credit Losses | |||||
Allowance for Credit Losses, Beginning of Year | $ 29,952 | $ 27,281 | $ 27,281 | ||
Loans Charged-off | (3,812) | (4,143) | (2,883) | ||
Less Recoveries of Loans Previously Charged-off | 2,116 | 2,016 | 1,445 | ||
Net Loans Charged-off | (1,696) | (2,127) | (1,438) | ||
Provision for Credit Losses | 2,856 | 4,798 | 3,389 | ||
Allowance for Credit Losses, End of Period | $ 31,112 | $ 29,952 | $ 29,232 | ||
Key Asset Quality Ratios | |||||
Net Loans Charged-off to Average Loans, Annualized | 0.07 % | 0.08 % | 0.07 % | ||
Provision for Loan Losses to Average Loans, Annualized | 0.13 % | 0.17 % | 0.16 % |
View original content:https://www.prnewswire.com/news-releases/arrow-reports-q3-2023-net-income-of-7-7-million-and-earnings-per-share-of-0-46--loans-of-3-1-billion-on-9-annualized-loan-growth-301965769.html
SOURCE Arrow Financial Corporation
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