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Arrow Reports $12.0 million in Q2 Net Income, Loan Growth of $108 Million
GLENS FALLS, N.Y., July 27, 2022 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced financial results for the three-month period ended
About this update from Arrow Financial Corporation
[{"type":"text","content":"GLENS FALLS, N.Y., July 27, 2022 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced financial results for the three-month period ended June 30, 2022. Net income for the second quarter of 2022 was $12.0 million and diluted earnings per share was $0.75.\nLoan growth was strong in the second quarter of 2022, with gross loans increasing by $108 million. Excluding Paycheck Protection Program (PPP) loans, which decreased by $17 million, loans grew by $125 million in the quarter.\n\"Arrow had a strong second quarter with total loan balances at June 30, 2022 reaching a record high,\" said Arrow President and CEO Thomas J. Murphy. \"I commend the Arrow Team for their outstanding efforts and strong work ethic. While economic challenges are expected this year, I am confident in our direction as a Company and our ability to deliver strong results for our shareholders, our customers and our communities.\"\nFor the second quarter of 2022, net income was $12.0 million compared to $13.3 million for the second quarter of 2021. The year-over-year decline in second quarter net income was primarily due to:\nAn increase in the provision expense for credit losses to $905 thousand for the second quarter of 2022, as compared to $263 thousand in the second quarter of 2021.Net gain on sale of loans was lower by $615 thousand when comparing year-over-year quarters.A decrease of $2.6 million in income earned on PPP loans included as part of net interest income in the second quarter of 2022 compared to the second quarter of 2021.Second Quarter Highlights\nEarnings:\nNet income was $12.0 million.Net interest margin was 3.02%.Return on average assets (ROA) was 1.20%.Return on average equity (ROE) was 13.44%.Diluted earnings per share (EPS) was $0.75 for the second quarter.Second-quarter revenue was consistent to the prior-year comparative quarter.Net charge-offs for the second quarter of 2022 were $476 thousand as compared to $93 thousand for the comparable 2021 quarter.Balance Sheet:\nTotal assets were $4.0 billion as of June 30, 2022.Total loans were $2.8 billion as of June 30, 2022, a record high for Arrow.Total deposits were $3.5 billion as of June 30, 2022.Loans to deposits ratio as of June 30, 2022 was 80.2%Additional Items:\n$17 million of PPP loans were forgiven in the second quarter of 2022.$1.5 million of PPP loans remained out...