#USA #Dividend #Arrow Financial #Glens Falls #Q3 Earnings

Overview of Arrow Financial Corporation's Q3 Earnings

Arrow Financial Corporation has recently disclosed its financial results for the third quarter of 2025, highlighting a noteworthy performance marked by significant revenue and profit growth. The company reported a net income of $12.8 million, translating to $0.77 per share. This represents a robust increase from the previous quarter's net income of $10.8 million and earnings per share of $0.65. Additionally, Arrow's Board of Directors has announced a quarterly cash dividend of $0.29 per share, poised to benefit shareholders who are on record by November 12, 2025.

Key Financial Highlights

The financial results further emphasize Arrow's operational efficiency. The net interest income reached $34.1 million, coupled with improvements in net interest margin, which has risen to 3.22% from the previous quarter’s 3.15%. High demand for loans saw the loan-to-deposit ratio maintain at an impressive 84%, with a recorded loan exit rate of 5.56%, which indicates healthy lending practices.

Non-Core Costs and Projections

Arrow experienced approximately $600 thousand in non-core costs (or detrimental expenses) due to its strategic unification efforts associated with the consolidation of its banking subsidiaries. However, these costs are not expected to recur moving forward, which positions Arrow favorably for future quarters.

Comments from Leadership

David S. DeMarco, President and CEO of Arrow, expressed pride in the team’s performance, noting the significant growth of nearly 20% in EPS from the preceding quarter besides an increase of 16 basis points in return on average assets (ROA) to 1.16%. DeMarco stated they anticipate another strong quarter, leveraging favorable market conditions, particularly following recent interest rate cuts by the Federal Reserve. This robust financial landscape will also empower the company to continue its contributions to community support while enhancing shareholder returns.

In-Depth Income Analysis

Arrow's net interest income rose by 4.9% from the prior quarter, driven by an increase in both interest and dividend income to $53.6 million. Moreover, expenses related to interest reflected a slight uptick to $19.5 million while maintaining balance in overall non-interest expenses. The direct benefit of these results underlines Arrow’s strategic focus on efficiency and prudent financial management.

The contribution of non-interest income saw an increase to $8.7 million, highlighting improvements in areas such as wealth management and interchange fees. While the institution continues to monitor provisions for credit losses, they remain low at $815 thousand, pointing to effective lending strategies and an assessed allowance for credit losses amounting to 0.99% of total outstanding loans, indicating solid asset quality.

Future Outlook and Capital Position

Arrow's total assets have experienced a healthy growth rate, escalating to approximately $4.6 billion with a stable increase in deposits and solid capital ratios, remaining compliant with regulatory capital standards. As of September 30, 2025, Arrow’s total stockholders’ equity was reported at $417.7 million, which reflects a sound balance sheet strengthened by operational and strategic growth.

Conclusion

The results from Arrow Financial Corporation’s Q3 2025 performance demonstrate strong financial health and position the company well for an optimistic projection going forward. With robust earnings, prudent expense management, and a firm grasp on market dynamics, Arrow is prepared to navigate future challenges while continuing to prioritize its shareholders and community commitments.

Additional Information

For further details on Arrow Financial Corporation’s quarterly performance, stakeholders can review official earnings materials and investor presentations accessible on their corporate website.