Arrow Financial Reports Strong Q3 Growth with Increased EPS and Strategic Initiatives

Arrow Financial's Strong Q3 Performance Signals Strategic Growth

Arrow Financial Corporation, a key player in the banking sector, demonstrates its robust operational performance in the third quarter of 2025, reporting a net income of $12.8 million, which translates to earnings per share (EPS) of $0.77. This marks a significant increase from the previous quarter's net income of $10.8 million and EPS of $0.65. The impressive financial results are a direct reflection of the successful integration of Arrow's banking subsidiaries, finalized in July 2025. Although the unification incurred approximately $600 thousand in non-core costs—equivalent to $0.03 per share—these expenses are not anticipated to recur, indicating a streamlined operational structure moving forward.

President and CEO David S. DeMarco emphasizes the company’s nearly 20% increase in EPS and a notable rise in Return on Average Assets (ROA) to 1.16%. The financial results are further bolstered by record net interest income of $34.1 million, as the net interest margin improves to 3.22%, up from 3.15% the prior quarter. Arrow's solid loan-to-deposit ratio of 84.0% and a quarter-end loan exit rate of 5.56% contribute to the overall positive financial landscape, showcasing the company's ability to manage its assets effectively. Such metrics suggest that Arrow is not only maintaining but also enhancing its profitability in a competitive market.

In addition to its strong earnings, Arrow Financial announces a quarterly cash dividend of $0.29 per share, set for distribution on November 24, 2025, to shareholders on record by November 12, 2025. This decision reflects the company’s commitment to delivering value to its shareholders, even amidst ongoing market adjustments. With approximately $2 billion in deposits poised for repricing due to recent Federal Reserve rate cuts, Arrow stands well-positioned to leverage favorable market conditions, further strengthening its role in supporting local communities while ensuring robust returns for its investors.

Arrow Financial's tangible book value per share also sees a positive trend, climbing to $23.85, a 2.7% increase from the previous quarter. The company continues to focus on strategic initiatives, evidenced by its recent share repurchase program, where it bought back $1.4 million worth of shares, totaling 52,947 at an average cost of $26.87 per share. This reflects Arrow's confidence in its growth trajectory and commitment to enhancing shareholder value as it navigates an evolving financial landscape.