Arrow Financial Corporation (NASDAQ:AROW) Reports Year-Over-Year Loan Growth of 10.8% and $8.9 million in Q2 Net Income

Arrow Financial Corporation (NASDAQ:AROW) Reports Year-Over-Year Loan Growth of 10.8% and $8.9 million in Q2 Net Income

Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended June 30, 2019. Net income for the second quarter of 2019 was $8.9 million, compared to $9.7 million in the second quarter of 2018. Steady loan growth continued in the second quarter of 2019, as total loans grew by $45.1 million from March 31, 2019 to $2.3 billion. Driven primarily by this growth, net interest income increased to $21.7 million in the second quarter of 2019, compared to $21.0 million for the comparable quarter of 2018.

Annualized key profitability ratios remained strong, as measured by a return on average equity of 12.79% and a return on average assets of 1.20% for the second quarter, compared to 15.22% and 1.38%, respectively, a year earlier.

“Thanks to the efforts of our team, Arrow continued its solid performance with steady loan growth and strong asset quality through the second quarter of the year,” said President and CEO Thomas J. Murphy. “Our Company is well-positioned to adapt to the continuing changes in a complex rate environment. Additionally, we are making strategic lending decisions within our communities that will help our region thrive, and we are making important investments that will help us provide an enhanced customer experience.”

The Company continued its forward momentum and expansion in the Capital Region with the opening of a new Saratoga National Bank and Trust Company office in Rotterdam, New York in the second quarter. Additionally, the company announced plans for the opening of its 12th Saratoga National Bank office, in Latham, New York, anticipated in early 2020.

The following expands on our second-quarter results:

Cash Dividend: On June 14, 2019, the Company distributed a cash dividend of $0.26 per share. The June 14, 2019 cash dividend was 7.1% higher than the $0.25 cash dividend paid by the Company in the second quarter of 2018, when adjusted for the 3% stock dividend distributed on September 27, 2018. The 2018 increase from $0.25 per share to $0.26 per share was the first increase in per share dividend amount since 2008.

Loan Growth: Total loans reached $2.3 billion as of June 30, 2019, which represents an increase of $222.4 million, or 10.8% as compared to June 30, 2018. The consumer loan portfolio grew by $117.1 million, or 17.7%, as compared to June 30, 2018, primarily within the indirect automobile lending program. The total residential real estate loan portfolio increased $60.0 million, or 7.4%, as compared to June 30, 2018. Total outstanding commercial loans increased $45.3 million, or 7.8%, as compared to June 30, 2018.

Deposit Growth: At June 30, 2019, deposit balances reached $2.5 billion, up $199.0 million, or 8.6%, from the prior-year level. Noninterest-bearing deposits represented 18.7% of total deposits at June 30, 2019. At June 30, 2019, other time deposits were $289.3 million, an increase of $119.7 million compared to the prior year. Time deposits include brokered deposits acquired to diversify source of funds to more favorable rates as compared to other borrowings.

Net Interest Income: Driven by strong loan growth, second quarter 2019 net interest income increased to $21.7 million, up 3.6% from $21.0 million in the comparable quarter of 2018. The net interest margin was 3.04% for the quarter, compared to 3.11% for the second quarter of 2018. The decrease in net interest margin from the prior year was the result of the migration to higher yielding deposit accounts due to rise in short-term market rates.

Noninterest Income: Noninterest income for the three months ended June 30, 2019, was $6.9 million, compared to $7.9 million in the comparable 2018 quarter. Despite the decline from the prior year, total noninterest income represented 24.1% of total revenues in the second quarter of 2019.

Noninterest Expense: Noninterest expense for the second quarter of 2019 increased 4.4% to $16.9 million, from $16.2 million for the second quarter of 2018. Technology and equipment expense increased $394 thousand, and other operating expense increased $409 thousand from the comparable quarter in 2018.

Provision for Income Taxes: The provision for income taxes was $2.3 million for the second quarter of both 2019 and 2018. The effective income tax rates for the three-month periods ended June 30, 2019 and 2018 were 20.5% and 19.3%, respectively.

Asset Quality: Asset quality remained strong at June 30, 2019, with continued low levels of nonperforming loans and net charge-offs. Nonperforming loans at June 30, 2019, were $5.5 million, up $26.0 thousand from the level at December 31, 2018. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.02% for the three-month period ended June 30, 2019, up from the prior-year comparable quarter of 0.01%. The allowance for loan losses was $20.7 million at June 30, 2019, which represented 0.91% of loans outstanding, as compared to 0.95% at June 30, 2018. The loss provision expense for the second quarter of 2019 was $455 thousand, down $174 thousand from the provision for the comparable 2018 quarter.

Capital: Total stockholders’ equity was a record $284.6 million at June 30, 2019, up $25.2 million, or 9.7%, from the comparable quarter of 2018. Overall regulatory capital ratios also remained strong in 2019, with the Company’s common equity tier 1 ratio estimated to be 12.99% and the total risk-based capital ratio estimated to be 14.91% at June 30, 2019. These capital levels at the Company and both its subsidiary banks continue to significantly exceed the “well capitalized” regulatory standard.

Industry Recognition: Both of the Company’s banking subsidiaries maintained their BauerFinancial, Inc. 5-Star Superior Bank rating. Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company have continued to earn this designation for the last 49 and 41 quarters, respectively. In May, Seifried & Brew named Glens Falls National and Saratoga National to the top 15th percentile of Community Banks based on their performance in 2018.

About Arrow: Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc. and Upstate Agency, LLC.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission (“SEC”) and may constitute “non-GAAP financial measures” within the meaning of the SEC’s rules. Certain non-GAAP financial measures include: tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent, and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company’s performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section “Selected Quarterly Information.”

Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management’s beliefs, assumptions, expectations, estimates and projections about the future. These statements may be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. The Company undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and other filings with the Securities and Exchange Commission.

250 Glen Street

Glens Falls, NY 12801

NASDAQ® Symbol: “AROW”

Website: arrowfinancial.com

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts – Unaudited)  
 
Three Months Ended June 30, Six Months Ended June 30,  
2019 2018 2019 2018  
INTEREST AND DIVIDEND INCOME  
Interest and Fees on Loans $ 23,520 $ 19,909 $ 45,923 $ 38,767  
Interest on Deposits at Banks 195 158 390 292  
Interest and Dividends on Investment Securities:  
Fully Taxable 2,284 2,048 4,653 3,941  
Exempt from Federal Taxes 1,228 1,475 2,474 3,008  
Total Interest and Dividend Income 27,227 23,590 53,440 46,008  
INTEREST EXPENSE  
Interest-Bearing Checking Accounts 453 388 935 775  
Savings Deposits 2,008 711 3,609 1,233  
Time Deposits over $250,000 515 328 911 532  
Other Time Deposits 1,131 282 1,844 541  
Federal Funds Purchased and

Securities Sold Under Agreements to Repurchase
25 16 47 32  
Federal Home Loan Bank Advances 1,099 656 2,693 1,070  
Junior Subordinated Obligations Issued to

Unconsolidated Subsidiary Trusts
261 247 530 461  
Interest on Financing Leases 28 43  
Total Interest Expense 5,520 2,628 10,612 4,644  
NET INTEREST INCOME 21,707 20,962 42,828 41,364  
Provision for Loan Losses 455 629 927 1,375  
NET INTEREST INCOME AFTER PROVISION FOR

LOAN LOSSES
21,252 20,333 41,901 39,989  
NONINTEREST INCOME  
Income From Fiduciary Activities 2,252 2,647 4,359 4,844  
Fees for Other Services to Customers 2,545 2,570 4,947 4,950  
Insurance Commissions 1,935 2,192 3,654 4,095  
Net Gain on Securities Transactions 223 76 241  
Net Gain on Sales of Loans 140 23 244 61  
Other Operating Income 24 256 503 609  
Total Noninterest Income 6,896 7,911 13,783 14,800  
NONINTEREST EXPENSE  
Salaries and Employee Benefits 9,727 9,812 19,046 19,181  
Occupancy Expenses, Net 1,279 1,270 2,699 2,610  
Technology and Equipment Expense 3,243 2,849 6,384 5,547  
FDIC Assessments 212 223 424 440  
Other Operating Expense 2,447 2,038 5,007 4,370  
Total Noninterest Expense 16,908 16,192 33,560 32,148  
INCOME BEFORE PROVISION FOR INCOME TAXES 11,240 12,052 22,124 22,641  
Provision for Income Taxes 2,306 2,322 4,456 4,380  
NET INCOME $ 8,934 $ 9,730 $ 17,668 $ 18,261  
Average Shares Outstanding 1:  
Basic 14,487 14,394 14,478 14,374  
Diluted 14,527 14,480 14,523 14,459  
Per Common Share:  
Basic Earnings $ 0.62 $ 0.68 $ 1.22 $ 1.27  
Diluted Earnings 0.62 0.67 1.22 1.26  
1 2018 Share and Per Share Amounts have been restated for the September 27, 2018, 3% stock dividend.  
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts – Unaudited)
June 30, 2019 December 31, 2018 June 30, 2018
ASSETS
Cash and Due From Banks $ 34,650 $ 56,529 $ 38,552
Interest-Bearing Deposits at Banks 28,045 27,710 22,189
Investment Securities:
Available-for-Sale 285,878 317,535 325,387
Held-to-Maturity (Approximate Fair Value of $266,068 at June 30, 2019; $280,338 at December 31, 2018; and $292,605 at June 30, 2018) 262,541 283,476 297,885
Equity Securities 1,850 1,774 1,802
Other Investments 8,202 15,506 11,089
Loans 2,280,308 2,196,215 2,057,862
Allowance for Loan Losses (20,695) (20,196) (19,640)
Net Loans 2,259,613 2,176,019 2,038,222
Premises and Equipment, Net 38,836 30,446 28,104
Goodwill 21,873 21,873 21,873
Other Intangible Assets, Net 1,730 1,852 2,060
Other Assets 62,532 55,614 58,008
Total Assets $ 3,005,750 $ 2,988,334 $ 2,845,171
LIABILITIES
Noninterest-Bearing Deposits $ 467,179 $ 472,768 $ 467,048
Interest-Bearing Checking Accounts 741,395 790,781 861,959
Savings Deposits 908,642 818,048 735,217
Time Deposits over $250,000 97,220 73,583 70,950
Other Time Deposits 289,317 190,404 169,607
Total Deposits 2,503,753 2,345,584 2,304,781
Federal Funds Purchased and  Securities Sold Under Agreements to Repurchase 51,149 54,659 60,248
Federal Home Loan Bank Overnight Advances 83,000 234,000 136,000
Federal Home Loan Bank Term Advances 30,000 45,000 45,000
Junior Subordinated Obligations Issued to Unconsolidated

Subsidiary Trusts
20,000 20,000 20,000
Finance Leases 5,270
Other Liabilities 27,929 19,507 19,654
Total Liabilities 2,721,101 2,718,750 2,585,683
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2019; $5 Par Value and 1,000,000 Shares Authorized at December 31, 2018 and June 30, 2018
Common Stock, $1 Par Value; 30,000,000 Shares Authorized at June 30, 2019 and 20,000,000 Shares Authorized at December 31, 2018 and June 30, 2018 (19,035,565 Shares Issued at June 30, 2019 and December 31, 2018 and 18,481,301 at June 30, 2018) 19,035 19,035 18,481
Additional Paid-in Capital 316,229 314,533 292,020
Retained Earnings 39,397 29,257 40,326
Unallocated ESOP Shares (5,001 Shares at June 30, 2019; 5,001 Shares at December 31, 2018 and 9,643 Shares at June 30, 2018) (100) (100) (200)
Accumulated Other Comprehensive Loss (9,647) (13,810) (11,804)
Treasury Stock, at Cost (4,517,412 Shares at June 30, 2019; 4,558,207 Shares at December 31, 2018 and 4,467,909 Shares at June 30, 2018) (80,265) (79,331) (79,335)
Total Stockholders’ Equity 284,649 269,584 259,488
Total Liabilities and Stockholders’ Equity $ 3,005,750 $ 2,988,334 $ 2,845,171
Arrow Financial Corporation Selected Quarterly Information (Dollars In Thousands, Except Per Share Amounts- Unaudited)
Quarter Ended 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
Net Income $ 8,934 $ 8,734 $ 8,758 $ 9,260 $ 9,730
Transactions in Net Income (Net of Tax):
Net Changes in Fair Value of Equity Investments 57 (106) 85 166
Share and Per Share Data:1
Period End Shares Outstanding 14,513 14,474 14,472 14,441 14,424
Basic Average Shares Outstanding 14,487 14,469 14,451 14,431 14,394
Diluted Average Shares Outstanding 14,527 14,520 14,514 14,520 14,480
Basic Earnings Per Share $ 0.62 $ 0.60 $ 0.61 $ 0.64 $ 0.68
Diluted Earnings Per Share 0.62 0.60 0.60 0.64 0.67
Cash Dividend Per Share 0.260 0.260 0.260 0.252 0.243
Selected Quarterly Average Balances:
 Interest-Bearing Deposits at Banks $ 25,107 $ 26,163 $ 34,782 $ 30,522 $ 28,543
 Investment Securities 584,679 611,161 637,341 636,847 647,913
 Loans 2,255,299 2,210,642 2,160,435 2,089,651 2,026,598
 Deposits 2,436,290 2,347,985 2,347,231 2,279,709 2,325,202
 Other Borrowed Funds 250,283 327,138 315,172 314,304 219,737
 Shareholders’ Equity 280,247 272,864 268,503 263,139 256,358
 Total Assets 2,997,458 2,977,056 2,954,029 2,879,854 2,823,061
Return on Average Assets, annualized 1.20 % 1.19 % 1.18 % 1.28 % 1.38 %
Return on Average Equity, annualized 12.79 % 12.98 % 12.94 % 13.96 % 15.22 %
Return on Average Tangible Equity, annualized 2 13.96 % 14.22 % 14.20 % 15.36 % 16.80 %
Average Earning Assets $ 2,865,085 $ 2,847,966 $ 2,832,558 $ 2,757,020 $ 2,703,054
Average Paying Liabilities 2,235,462 2,224,403 2,189,233 2,110,924 2,100,085
Interest Income 27,227 26,213 26,000 24,495 23,590
Tax-Equivalent Adjustment 3 376 373 376 376 468
Interest Income, Tax-Equivalent 3 27,603 26,586 26,376 24,871 24,058
Interest Expense 5,520 5,092 4,343 3,498 2,628
Net Interest Income 21,707 21,121 21,657 20,997 20,962
Net Interest Income, Tax-Equivalent 3 22,083 21,494 22,033 21,373 21,430
Net Interest Margin, annualized 3.04 % 3.01 % 3.03 % 3.02 % 3.11 %
Net Interest Margin, Tax-Equivalent, annualized 3 3.09 % 3.06 % 3.09 % 3.08 % 3.18 %
Efficiency Ratio Calculation: 4
Noninterest Expense $ 16,908 $ 16,652 $ 16,881 $ 16,026 $ 16,192
Less: Intangible Asset Amortization 44 79 65 65 66
Net Noninterest Expense $ 16,864 $ 16,573 $ 16,816 $ 15,961 $ 16,126
Net Interest Income, Tax-Equivalent $ 22,083 $ 21,494 $ 22,033 $ 21,373 $ 21,430
Noninterest Income 6,896 6,887 6,799 7,350 7,911
Less: Net Changes in Fair Value of Equity Invest. 76 (142) 114 223
Net Gross Income $ 28,979 $ 28,305 $ 28,974 $ 28,609 $ 29,118
Efficiency Ratio 58.19 % 58.55 % 58.04 % 55.79 % 55.38 %
Period-End Capital Information:
Total Stockholders’ Equity (i.e. Book Value) $ 284,649 $ 276,609 $ 269,584 $ 264,810 $ 259,488
Book Value per Share 1 19.61 19.11 18.63 18.34 17.99
Goodwill and Other Intangible Assets, net 23,603 23,650 23,725 23,827 23,933
Tangible Book Value per Share 1,2 17.99 17.48 16.99 16.69 16.33
Capital Ratios:5
Tier 1 Leverage Ratio 9.88 % 9.73 % 9.61 % 9.67 % 9.65 %
Common Equity Tier 1 Capital Ratio 12.99 % 12.98 % 12.89 % 12.89 % 13.01 %
Tier 1 Risk-Based Capital Ratio 13.93 % 13.95 % 13.87 % 13.90 % 14.04 %
Total Risk-Based Capital Ratio 14.91 % 14.93 % 14.86 % 14.90 % 15.06 %
Assets Under Trust Admin. & Investment Mgmt. $ 1,496,966 $ 1,483,259 $ 1,385,752 $ 1,551,289 $ 1,479,753
Arrow Financial Corporation Selected Quarterly Information – Continued (Dollars In Thousands, Except Per Share Amounts – Unaudited)  
 
Footnotes:  
 
1. Share and Per Share Data have been restated for the September 27, 2018, 3% stock dividend.  
 
2. Non-GAAP Financial Measures Reconciliation: Tangible Book Value and Tangible Equity exclude goodwill and other intangible assets, net from total equity.  These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance.  
6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018  
Total Stockholders’ Equity (GAAP) $ 284,649 $ 276,609 $ 269,584 $ 264,810 $ 259,488  
Less: Goodwill and Other Intangible assets, net 23,603 23,650 23,725 23,827 23,933  
Tangible Equity (Non-GAAP) $ 261,046 $ 252,959 $ 245,859 $ 240,983 $ 235,555  
 
Period End Shares Outstanding 14,513 14,474 14,472 14,441 14,424  
Tangible Book Value per Share (Non-GAAP) $ 17.99 $ 17.48 $ 16.99 $ 16.69 $ 16.33  
Net Income 8,934 8,734 8,758 9,260 9,730  
Return on Tangible Equity (Net Income/Tangible Equity – Annualized) 13.96 % 14.22 % 14.20 % 15.36 % 16.80 %  
 
3. Non-GAAP Financial Measures Reconciliation: Net Interest Margin, Tax-Equivalent is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance.  
6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018  
Interest Income (GAAP) $ 27,227 $ 26,213 $ 26,000 $ 24,495 $ 23,590  
Add: Tax-Equivalent adjustment

(Non-GAAP)
376 373 376 376 468  
Interest Income – Tax Equivalent

(Non-GAAP)
$ 27,603 $ 26,586 $ 26,376 $ 24,871 $ 24,058  
Net Interest Income (GAAP) $ 21,707 $ 21,121 $ 21,657 $ 20,997 $ 20,962  
Add: Tax-Equivalent adjustment

(Non-GAAP)
376 373 376 376 468  
Net Interest Income – Tax Equivalent

(Non-GAAP)
$ 22,083 $ 21,494 $ 22,033 $ 21,373 $ 21,430  
Average Earning Assets $ 2,865,085 $ 2,847,966 $ 2,832,558 $ 2,757,020 $ 2,703,054  
Net Interest Margin (Non-GAAP)* 3.09 % 3.06 % 3.09 % 3.08 % 3.18 %  
 
4. Non-GAAP Financial Measures: Financial Institutions often use the “efficiency ratio”, a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted).  
 
5. For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with, bank regulatory capital rules. All prior quarters reflect actual results. The CET1 ratio at June 30, 2019 listed in the tables (i.e., 12.99%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).  
6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018  
Total Risk Weighted Assets $ 2,121,541 $ 2,075,115 $ 2,046,495 $ 1,999,849 $ 1,934,890  
Common Equity Tier 1 Capital 275,528 269,363 263,863 257,852 251,666  
Common Equity Tier 1 Ratio 12.99 % 12.98 % 12.89 % 12.89 % 13.01 %  
 
* Quarterly ratios have been annualized  
Arrow Financial Corporation Consolidated Financial Information (Dollars in Thousands – Unaudited)
Quarter Ended: 6/30/2019 12/31/2018 6/30/2018
Loan Portfolio
Commercial Loans $ 138,331 $ 136,890 $ 118,881
Commercial Real Estate Loans 490,274 484,562 464,393
 Subtotal Commercial Loan Portfolio 628,605 621,452 583,274
Consumer Loans 779,024 719,510 661,908
Residential Real Estate Loans 872,679 855,253 812,680
Total Loans $ 2,280,308 $ 2,196,215 $ 2,057,862
Allowance for Loan Losses
Allowance for Loan Losses, Beginning of Quarter $ 20,373 $ 20,003 $ 19,057
Loans Charged-off (368) (573) (264)
Less Recoveries of Loans Previously Charged-off 235 120 218
Net Loans Charged-off (133) (453) (46)
Provision for Loan Losses 455 646 629
Allowance for Loan Losses, End of Quarter $ 20,695 $ 20,196 $ 19,640
Nonperforming Assets
Nonaccrual Loans $ 4,949 $ 4,159 $ 3,880
Loans Past Due 90 or More Days and Accruing 457 1,225 170
Loans Restructured and in Compliance with Modified Terms 142 138 106
Total Nonperforming Loans 5,548 5,522 4,156
Repossessed Assets 115 130 76
Other Real Estate Owned 1,258 1,130 1,412
Total Nonperforming Assets $ 6,921 $ 6,782 $ 5,644
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans,  Quarter-to-date Annualized 0.02 % 0.08 % 0.01 %
Provision for Loan Losses to Average Loans,  Quarter-to-date Annualized 0.08 % 0.12 % 0.12 %
Allowance for Loan Losses to Period-End Loans 0.91 % 0.92 % 0.95 %
Allowance for Loan Losses to Period-End Nonperforming Loans 373.02 % 365.74 % 472.57 %
Nonperforming Loans to Period-End Loans 0.24 % 0.25 % 0.20 %
Nonperforming Assets to Period-End Assets 0.23 % 0.23 % 0.20 %
Six-Month Period Ended:
Allowance for Loan Losses
Allowance for Loan Losses, Beginning of Year $ 20,196 $ 18,586
Loans Charged-off (830) (634)
Less Recoveries of Loans Previously Charged-off 402 313
Net Loans Charged-off (428) (321)
Provision for Loan Losses 927 1,375
Allowance for Loan Losses, End of Period $ 20,695 $ 19,640
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Annualized 0.04 % 0.03 %
Provision for Loan Losses to Average Loans, Annualized 0.08 % 0.14 %

SOURCE Arrow Financial Corporation

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