Arrow Financial Corporation · NASDAQ:AROW
Arrow Financial — Investor Presentation (June 2025)
10 slides from Arrow Financial's investor presentation, Jun 17, 2025
Slide 1: Mid-2Q Update Virtual Investor Meetings
Mid-2Q Update Virtual Investor Meetings June 17, 2025
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation may contain certain forward-looking statements about Arrow Financial Corporation (“Arrow” or the “Company”). Forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, as amended, include statements regarding anticipat
Slide 3: Net Interest Margin – QTD May 2025
3 Net Interest Margin – QTD May 2025 1 1Yield includes the impact of deferred fees and amortization of loan origination costs 2FTE has historically been 1-2 bps higher than NIM reported under GAAP 2.98% 2.63% 2.55%2.55% 2.62% 2.69% 2.79% 2.85% 3.08% 3.12% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
Slide 4: Quarterly ROA Trends – QTD May 2025
4 Quarterly ROA Trends – QTD May 2025 0.73% 0.82% 0.84% 0.72% 0.91% 0.99% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Quarterly ROA Reported ROA Adjusted ROA* 0.41% 0.59% • 4Q24 Adjusted ROA excludes 9bps of bank unification-related expenses and write-offs and 22bps related to securities portfolio restructuring •
Slide 5: Loan Rates & Trends
5 Loan Rates & Trends • Loan origination rates exceed portfolio rates • 2QTD loan volume in line with 1Q25 • Loan pipeline in line with prior year • FY25 loan growth anticipated to be low single digits 1Average portfolio rates as of the last day of the reporting period Consumer CRE C&I RRE 2QTD Avg.
Slide 6: Deposit Rates & Trends
6 Deposit Rates & Trends Exit Rate1 Exit Rate1 Exit Rate1 Demand (Non-Interest Bearing) 0.00% 0.00% 0.00% Interest Bearing Checking 1.12% 1.02% 1.03% Savings and Money Market 2.65% 2.53% 2.51% Time Deposits 3.60% 3.44% 3.42% Total 1.92% 1.80% 1.79% 4Q 2024 1Q 2025 May 2025 • Disciplined pricing cont
Slide 7: Credit Quality
7 Credit Quality • Non-Performing Loans (NPLs) to Total Loans was 0.17% as of May 31, 2025 • YTD Charge-off Ratio was 0.35% through May 2025 • YTD Charge-off Ratio was 0.08%, excl. $15M CRE loan participation1charge-off 0.43% 0.45% 0.51% 0.68% 0.57%0.58% 0.62% 0.76% 0.56% 0.61% 0.60% 0.60% 0.53% 0.5
Slide 8: Capital & Ownership
8 Capital & Ownership • TCE of 8.72% as of May 31, 2025, up from 8.56% at 1Q25 • YTD 2025 Share Repurchase Activity YTD through June 13, 2025, ~$8.5M of stock repurchases o ~324.5K shares at an average price of $26.23 2QTD, ~$5.1M of stock repurchases o ~196.5K shares at an average price of $26.
Slide 9: M&A
9 M&A • M&A Strategic Focus Branch(es) Bank(s) Geographic Target Area Wealth Management Insurance Current Branch Network
Slide 10: Thank You!
Thank You! - =\RROW Financial Corporation