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Arrow Reports Q3 2023 Net Income of $7.7 Million and Earnings per Share of $0.46, Loans of $3.1 Billion on 9% Annualized Loan Growth
GLENS FALLS, N.Y., Oct. 24, 2023 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow") announced financial results for the three-month
About this update from Arrow Financial Corporation
[{"type":"text","content":"GLENS FALLS, N.Y., Oct. 24, 2023 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) (\"Arrow\") announced financial results for the three-month period ended September 30, 2023. Net income for the third quarter of 2023 was $7.7 million and fully diluted earnings per share was $0.46. Nonperforming assets decreased $0.2 million in the third quarter to 0.16% of assets, with the allowance for credit losses reaching 491% of nonperforming loans.\n\nArrow President and CEO David S. DeMarco: \n\"This quarter, we continued to experience substantial loan growth with asset and deposit balances at or near record highs. We also continued our pattern of issuing cash and stock dividends, underscoring our dedication to creating value for our shareholders. As we move ahead, Arrow expects to restart our Dividend Reinvestment Plan.\nWe were proud to officially open our renovated downtown Glens Falls campus and Main Office branch this summer. Glens Falls has been our home for much of our 172-year history, and we are excited about the positive impact this will have on all our stakeholders. As always, we are focused on enhancing the customer experience and optimizing our operations while supporting our exceptional team.\"\nThis Earnings Release and related commentary should be read in conjunction with our October 24, 2023 Form 8-K and related Third Quarter 2023 Investor Presentation, which can also be found on our website: arrowfinancial.com/investor-presentations. \nThird-Quarter Highlights and Key Metrics\nRecord high loans of $3.1 billion, growing at an annualized rate of 9%, or $68.7 millionNonperforming assets decreased to $6.9 million, representing 0.16% of period-end assetsNet charge-offs to average loans were 0.05% as compared to 0.07% for the previous quarterAllowance for credit losses to nonperforming loans coverage of 491%Deposit balances increased to $3.7 billion, growing $164.3 million, or 4.7%Loan-to-deposit ratio was 86%Net interest margin was 2.53%Arrow entered into two pay-fixed portfolio layer method fair value swaps, with total notional amounts of $250 million and $50 million, respectively. The transactions are accretive to net interest income, adding more than $2 million annually in the current \"higher for longer\" rate environmentStrong on-balance sheet liquidity of $334 million, or 8% of total assetsLiquidity and ava...