Business
Arrow Reports 12.2% Year-Over-Year Loan Growth and $8.7 million in Net Income
GLENS FALLS, N.Y., April 23, 2019 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended
About this update from Arrow Financial Corporation
[{"type":"text","content":"GLENS FALLS, N.Y., April 23, 2019 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended March 31, 2019. Net income for the first quarter of 2019 was $8.7 million compared to $8.5 million in the first quarter of 2018. Steady loan growth continued in 2019, as net loans grew by $38.8 million to $2.21 billion. Driven primarily by this growth, net interest income increased to $21.1 million in the first quarter of 2019, compared to $20.4 million for the comparable quarter of 2018. Noninterest income, which includes revenues generated from insurance commissions and wealth management, contributed $6.9 million to total first quarter revenue of $28.0 million, a 2.6% increase over $27.3 million for the first quarter of 2018.\nAnnualized key profitability ratios remained strong, as measured by a return on average equity (ROE) of 12.98% and a return on average assets (ROA) of 1.19% for the first quarter, compared to 13.78% and 1.25%, respectively, a year earlier.\n\"Arrow continued its strong performance through the first quarter of the year,\" said President and CEO Thomas J. Murphy. \"Steady loan growth was again a highlight, while our profitability, asset and capital ratios all reflect our solid foundation. Our team is committed to advancing community banking in the markets we serve, and I am very proud of their achievements.\"\nCash Dividend: On March 15, 2019, the Company distributed a cash dividend of $0.26 per share. The March 15, 2019 cash dividend was 7.1% higher than the $0.25 cash dividend paid by the Company in the first quarter of 2018, when adjusted for the 3% stock dividend distributed on September 27, 2018.\nThe following expands on our first-quarter results:\nLoan Growth: Over the twelve months ended March 31, 2019, total loans increased $242.2 million, or 12.2%, to $2.2 billion. The consumer loan portfolio grew by $120.2 million, or 19.2%, over the balance at March 31, 2018, primarily within the indirect automobile lending program. The total residential real estate loan portfolio increased $78.1 million, or 10.0%, over the balance at March 31, 2018. Total outstanding commercial loans increased $43.9 million, or 7.5% over the balance at March 31, 2018.\nDeposit Growth: At March 31, 2019, deposit balances reached $2.5 billion, up $78.8 million, or 3.3%, fro...