Arrow Financial reports Q1 EPS 38c vs. 27c in Q4

The quarter was adversely impacted by the recognition of a specific reserve of 17c per share related to a $15M commercial real estate loan participation secured by properties in two office parks in upstate New York, where Arrow is a 22% participant in a $67M multi-bank lending facility. This quarter’s results also reflect approximately 3c per share of non-core unification costs related to Arrow’s planned July 2025 system conversion and operational merger of its two banking subsidiaries. Net Interest Margin improved to 3.07%, up from 2.83% in the prior quarter. Tangible Book Value increased to $22.72 from $22.40 at previous quarter end. Common Equity Tier 1 Ratio was 12.59% vs. 12.71% in the previous quarter. CEO David DeMarco said, “We delivered another quarter of strong margin expansion along with continued loan growth, further improving core profitability during these volatile economic times. We continue to execute on our strategic initiatives for continued growth, including expanding our Corporate Banking Team in the Capital Region of New York state. Our overall credit quality remains extremely strong, despite the recent development in one of our larger commercial credit exposures. We believe this to be an isolated incident as all credit metrics outside of this particular exposure are trending favorably. Furthermore, we are moving closer to finalizing our bank unification efforts to better serve our growing market and drive stronger operating performance under one brand.”