Arrow Financial Corporation (AROW) Bundle
A Brief History of Arrow Financial Corporation
Arrow Financial Corporation, as of 2024, has demonstrated significant growth and stability in its financial operations. The company reported a net income of $9.0 million for the third quarter of 2024, an increase from $8.6 million in the previous quarter and $7.7 million during the same period in 2023.
Financial Performance
For the third quarter of 2024, Arrow's net interest income reached $28.4 million, a 4.7% increase from $27.2 million in the second quarter of 2024 and a 12.2% rise compared to $25.4 million in the third quarter of 2023. The total interest and dividend income for the same period was $49.4 million, up from $48.0 million in the previous quarter and $42.1 million year-over-year.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $9.0 million | $8.6 million | $7.7 million |
| Net Interest Income | $28.4 million | $27.2 million | $25.4 million |
| Total Interest and Dividend Income | $49.4 million | $48.0 million | $42.1 million |
Asset and Liability Management
As of September 30, 2024, Arrow's total assets amounted to $4.4 billion, reflecting an increase of $167.0 million, or 3.9%, from the prior quarter. Total loans were reported at $3.3 billion, indicating a $201.2 million increase since September 30, 2023. Deposits also grew to $3.8 billion, marking a rise of $171.0 million year-over-year.
| Key Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Total Assets | $4.4 billion | $4.3 billion |
| Total Loans | $3.3 billion | $3.1 billion |
| Total Deposits | $3.8 billion | $3.6 billion |
Stockholder Equity and Earnings Per Share
Stockholders' equity as of September 30, 2024, was $393.3 million, an increase of $13.5 million, or 3.6%, from December 31, 2023. The book value per share was reported at $23.50, up 11.3% from the previous year. The diluted earnings per share for the third quarter of 2024 were $0.53, compared to $0.46 in the third quarter of 2023.
| Equity Metrics | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Stockholders' Equity | $393.3 million | $360.0 million |
| Book Value per Share | $23.50 | $21.12 |
| Diluted Earnings per Share | $0.53 | $0.46 |
Operational Efficiency
The efficiency ratio for the third quarter of 2024 improved to 65.59% from 69.93% in the same quarter of the previous year. Total non-interest expense for the third quarter was $24.1 million, slightly up from $23.5 million year-over-year.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Non-Interest Expense | $24.1 million | $23.5 million |
| Efficiency Ratio | 65.59% | 69.93% |
A Who Owns Arrow Financial Corporation (AROW)
Major Shareholders
As of September 30, 2024, Arrow Financial Corporation had approximately 16,734,000 shares outstanding. The ownership structure consists of both institutional and individual investors.
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 6,500,000 | 38.8% |
| Individual Investors | 10,234,000 | 61.2% |
Institutional Ownership
Significant institutional shareholders include:
- BlackRock, Inc.: 1,200,000 shares (7.2%)
- The Vanguard Group: 900,000 shares (5.4%)
- State Street Corporation: 750,000 shares (4.5%)
- Wellington Management: 600,000 shares (3.6%)
Executive and Insider Ownership
Executive officers and directors of Arrow Financial Corporation hold a substantial portion of the company's shares:
- Gary C. Dake (President): 500,000 shares (3.0%)
- Other Executives: 300,000 shares (1.8%)
- Board of Directors: 250,000 shares (1.5%)
Recent Changes in Ownership
In 2024, Arrow Financial Corporation authorized a stock repurchase program, allowing the repurchase of up to $5 million in common stock. This program has led to a reduction in the number of shares outstanding.
Stock Performance
The stock price of Arrow Financial Corporation as of September 30, 2024, was $28.66 per share. The company has maintained a consistent dividend payout, with a cash dividend of $0.27 per share for Q3 2024.
| Quarter | Cash Dividend Per Share | Stock Price |
|---|---|---|
| Q1 2024 | $0.27 | $23.11 |
| Q2 2024 | $0.27 | $21.50 |
| Q3 2024 | $0.27 | $28.66 |
Book Value and Financial Metrics
As of September 30, 2024, the book value per share increased to $23.50, representing an 11.3% increase year-over-year. The tangible book value per share was reported at $21.95, reflecting a similar increase.
| Metric | Value |
|---|---|
| Book Value Per Share | $23.50 |
| Tangible Book Value Per Share | $21.95 |
| Net Income (Q3 2024) | $8,975,000 |
Regulatory Capital and Compliance
Arrow Financial Corporation has consistently exceeded regulatory capital requirements. As of September 30, 2024, the Common Equity Tier 1 (CET1) capital ratio was 12.77%, well above the minimum requirement of 4.5%.
| Capital Ratio | Value |
|---|---|
| CET1 Ratio | 12.77% |
| Capital Conservation Buffer | 2.50% |
Arrow Financial Corporation (AROW) Mission Statement
Arrow Financial Corporation is committed to providing exceptional financial services that foster the growth and prosperity of its customers and communities. The company strives to deliver value through responsible banking practices, innovative solutions, and a dedication to customer satisfaction.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all interactions.
- Customer Focus: Prioritizing the needs and interests of customers in every decision.
- Community Engagement: Actively participating in and supporting community initiatives and development.
- Innovation: Embracing technology and new ideas to enhance service delivery and operational efficiency.
Financial Overview
As of September 30, 2024, Arrow Financial Corporation reported the following financial metrics:
| Metric | Amount |
|---|---|
| Total Assets | $4.4 billion |
| Total Loans | $3.3 billion |
| Total Deposits | $3.8 billion |
| Stockholders' Equity | $393.3 million |
| Book Value per Share | $23.50 |
| Tangible Book Value per Share | $21.95 |
| Net Income (Q3 2024) | $8.975 million |
| Cash Dividend per Share | $0.27 |
Recent Performance Metrics
For the third quarter of 2024, Arrow Financial Corporation achieved the following performance indicators:
| Indicator | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Earnings per Share | $0.54 | $0.46 |
| Diluted Earnings per Share | $0.53 | $0.46 |
| Return on Average Assets | 0.84% | 0.75% |
| Return on Average Equity | 9.20% | 8.47% |
| Net Interest Margin | 2.79% | 2.55% |
Strategic Objectives
Arrow Financial Corporation aims to:
- Enhance customer experience through personalized financial solutions.
- Expand its market presence by leveraging technology and innovation.
- Maintain a robust capital position to support growth and stability.
- Commit to community development through various outreach programs.
Community Involvement
Arrow Financial Corporation actively engages in community support through financial literacy programs, sponsorships, and charitable contributions. In 2024, the corporation has allocated resources to various initiatives aimed at improving economic opportunities within its service areas.
Conclusion
The mission of Arrow Financial Corporation is underpinned by its commitment to integrity, customer focus, community engagement, and innovation. These core values guide the company in its operations and strategic direction as it seeks to fulfill its mission in 2024 and beyond.
How Arrow Financial Corporation (AROW) Works
Company Overview
Arrow Financial Corporation is a bank holding company that operates through its subsidiaries, primarily providing a range of financial services including commercial banking, investment management, and insurance. As of September 30, 2024, Arrow has reported total assets of $4.4 billion, marking a 3.2% increase from the previous year.
Financial Performance
For the third quarter of 2024, Arrow reported a net income of $8.975 million, up from $7.743 million in the third quarter of 2023. The increase in net income was driven by a significant rise in net interest income, which reached $28.4 million, a 12.2% increase compared to $25.4 million in the same quarter of the previous year.
| Quarter Ended | Net Income ($ million) | Net Interest Income ($ million) | Basic Earnings Per Share ($) | Diluted Earnings Per Share ($) | Cash Dividend Per Share ($) |
|---|---|---|---|---|---|
| 9/30/2024 | 8.975 | 28.4 | 0.54 | 0.53 | 0.27 |
| 9/30/2023 | 7.743 | 25.4 | 0.46 | 0.46 | 0.262 |
Balance Sheet Highlights
As of September 30, 2024, Arrow's total liabilities stood at $3.861 billion, while stockholders' equity was $393.3 million. The company maintained a book value per share of $23.50, which reflects an 11.3% increase year-over-year.
| Balance Sheet Item | September 30, 2024 ($ million) | September 30, 2023 ($ million) |
|---|---|---|
| Total Assets | 4,400 | 4,261 |
| Total Liabilities | 3,861 | 3,696 |
| Stockholders' Equity | 393.3 | 360.0 |
Loan Portfolio Composition
Arrow's total loans amounted to $3.3 billion as of September 30, 2024. The loan growth for the third quarter was $24.2 million, with significant contributions from residential real estate loans, which increased by $93.9 million, or 7.8%, year-to-date.
| Loan Type | Balance ($ million) | Percentage of Total Loans (%) |
|---|---|---|
| Commercial Loans | 169.9 | 5.1 |
| Commercial Real Estate Loans | 756.4 | 22.7 |
| Consumer Loans | 1,120.2 | 33.6 |
| Residential Real Estate Loans | 1,293.4 | 38.7 |
Deposit Trends
Arrow reported total deposits of $3.8 billion as of September 30, 2024, reflecting a 4.7% increase from the previous year. This growth was supported by seasonal municipal deposits and brokered CDs.
| Deposit Type | Balance ($ million) | Percentage of Total Deposits (%) |
|---|---|---|
| Noninterest-Bearing Deposits | 721.3 | 19.3 |
| Interest-Bearing Checking Accounts | 785.1 | 21.2 |
| Savings Deposits | 1,492.9 | 39.4 |
| Time Deposits | 677.1 | 18.1 |
Credit Quality and Risk Management
As of September 30, 2024, Arrow's allowance for credit losses was $31.3 million, representing 0.94% of total loans. Nonperforming loans totaled $21.9 million, equating to 0.66% of period-end loans.
| Credit Quality Indicator | Value |
|---|---|
| Net Charge-offs ($ million) | 0.7 |
| Provision for Credit Losses ($ million) | 0.934 |
| Nonperforming Assets ($ million) | 22.3 |
| Allowance for Credit Losses (% of Loans) | 0.94 |
Regulatory Capital Position
Arrow Financial Corporation continues to exceed all required minimum capital ratios under current banking regulations. As of September 30, 2024, the Common Equity Tier 1 (CET1) capital ratio was well above the minimum requirement of 4.5%.
| Capital Ratio | Percentage (%) |
|---|---|
| Minimum CET1 Ratio | 4.5 |
| Capital Conservation Buffer | 2.5 |
How Arrow Financial Corporation (AROW) Makes Money
Net Interest Income
Arrow Financial Corporation generates a significant portion of its revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits. For the third quarter of 2024, Arrow reported net interest income of $28.4 million, a 12.2% increase compared to $25.4 million in the same quarter of 2023. This growth is primarily attributed to an increase in interest and fees on loans, which reached $44.1 million in Q3 2024, up from $36.7 million in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Net Interest Income | $28.4 million | $25.4 million | $3.0 million | 12.2% |
| Interest and Fees on Loans | $44.1 million | $36.7 million | $7.4 million | 20.2% |
| Interest Expense | $21.0 million | $16.8 million | $4.2 million | 25.0% |
Non-Interest Income
In addition to net interest income, Arrow Financial Corporation also earns non-interest income, which includes fees for services, fiduciary activities, and insurance commissions. For the third quarter of 2024, total non-interest income was reported at $8.1 million, consistent with the same period in the previous year. This stability reflects the resumption of loan sales from current loan originations and higher wealth management fees due to improved market valuations.
| Non-Interest Income Sources | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Income From Fiduciary Activities | $2.4 million | $2.4 million | $0.0 million | 0.0% |
| Fees for Other Services to Customers | $2.9 million | $2.8 million | $0.1 million | 4.3% |
| Insurance Commissions | $2.0 million | $1.7 million | $0.3 million | 17.6% |
Loan Portfolio
As of September 30, 2024, Arrow's total loans stood at $3.3 billion, reflecting an increase of $201.2 million from the previous year. The loan portfolio is diversified across commercial, residential, and consumer loans. Loan growth was particularly strong in residential real estate, which increased by $93.9 million or 7.8% from December 31, 2023.
| Loan Segments | Total Loans (as of 9/30/2024) | % of Total Loans | Growth from Prior Year |
|---|---|---|---|
| Residential Real Estate Loans | $1.3 billion | 38.7% | $93.9 million (7.8%) |
| Commercial Loans | $0.8 billion | 24.0% | $24.6 million (2.7%) |
| Consumer Loans | $1.1 billion | 33.6% | $8.6 million (0.8%) |
Deposit Trends
Deposits are a crucial component of Arrow's funding strategy, with total deposits amounting to $3.8 billion as of September 30, 2024. This represents a decrease of $171.0 million, or 4.7%, from the previous year. The shift in deposit composition reflects changes in market rates and competitive pressures.
| Deposit Types | Total Deposits (as of 9/30/2024) | Change from Prior Year | % Change |
|---|---|---|---|
| Noninterest-Bearing Deposits | $721.3 million | ($57.7 million) | −7.4% |
| Interest-Bearing Checking Accounts | $785.1 million | ($10.5 million) | −1.3% |
| Savings Deposits | $1.5 billion | ($11.0 million) | −0.7% |
Expenses and Efficiency
Arrow Financial Corporation's non-interest expenses were reported at $24.1 million for the third quarter of 2024, an increase from $23.5 million in Q3 2023. The efficiency ratio, which measures operating efficiency, was recorded at 65.59% for the third quarter of 2024, indicating a slight improvement in cost management.
| Expense Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Non-Interest Expense | $24.1 million | $23.5 million | $0.6 million |
| Efficiency Ratio | 65.59% | 69.93% | (4.34%) |
Net Income and Earnings Per Share
For the third quarter of 2024, Arrow Financial Corporation reported a net income of $8.975 million, translating to diluted earnings per share (EPS) of $0.53, up from $0.46 in Q3 2023. This increase reflects strong performance in net interest income and effective cost management.
| Performance Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $8.975 million | $7.743 million | $1.232 million |
| Diluted EPS | $0.53 | $0.46 | $0.07 |
Conclusion on Financial Position
As of September 30, 2024, Arrow Financial Corporation's total assets were $4.4 billion, with stockholders' equity amounting to $393.3 million. This solid financial foundation supports Arrow's growth strategy and ongoing investments in its loan portfolio and service offerings.
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Resources:
- Arrow Financial Corporation (AROW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Arrow Financial Corporation (AROW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Arrow Financial Corporation (AROW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.