Arrow Financial Corporation ( (AROW) ) has released its Q3 earnings. Here is a breakdown of the information Arrow Financial Corporation presented to its investors.
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Arrow Financial Corporation, a holding company based in Glens Falls, New York, operates in the financial services sector through its subsidiaries, Arrow Bank and Upstate Agency, LLC, providing banking and insurance services in northeastern New York.
In its latest earnings report, Arrow Financial Corporation announced a net income of $12.8 million for the third quarter of 2025, translating to $0.77 per share. The company also declared a fourth-quarter dividend of $0.29 per share, reflecting a robust financial performance following the successful unification of its banking subsidiaries.
Key financial metrics for the quarter included a record net interest income of $34.1 million and an improved net interest margin of 3.22%. The return on average assets increased to 1.16%, and the tangible book value per share rose by 2.7% to $23.85. The company also reported a decrease in the cost of retail deposits and a slight increase in loan exit rates, indicating effective financial management and operational efficiency.
Arrow Financial’s balance sheet showed an increase in total assets to $4.6 billion, driven by growth in deposits and loans. The company maintained strong capital ratios, with a Common Equity Tier 1 Capital Ratio of 13.07% and a Total Risk-Based Capital Ratio of 14.86%, underscoring its solid financial foundation.
Looking ahead, Arrow Financial Corporation is well-positioned to capitalize on the Federal Reserve’s interest rate cuts, with a liability-sensitive balance sheet that could enhance future financial performance. The management remains committed to supporting community initiatives while delivering value to shareholders.