$AROW

ARROW FINANCIAL CORP

CIK:0000717538|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans	$ 47,181	$ 45,600	$ 94,307	$ 90,150
Interest on Deposits at Banks	1,200	1,622	2,875	3,243
Interest and Dividends on Investment Securities:
Fully Taxable	4,717	3,790	9,246	7,398
Exempt from Federal Taxes	519	561	983	1,148
Total Interest and Dividend Income	53,617	51,573	107,411	101,939
INTEREST EXPENSE
Interest-Bearing Checking Accounts	2,162	1,941	4,262	3,744
Savings Deposits	8,933	9,367	17,649	18,850
Time Deposits over $250	1,052	1,726	2,248	3,537
Other Time Deposits	4,304	5,793	9,740	11,322
Borrowings	1,019	0	1,019	167
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	171	171	340	340
Interest on Financing Leases	45	42	92	89
Total Interest Expense	17,686	19,040	35,350	38,049
NET INTEREST INCOME	35,931	32,533	72,061	63,890
Provision for Credit Losses	2,827	594	3,375	5,613
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	33,104	31,939	68,686	58,277
NON-INTEREST INCOME
Insurance Commissions	1,974	1,804	4,087	3,630
Net Gain (Loss) on Securities	155	(40)	300	277
Net Gain on Sales of Loans	154	213	444	314
Other Operating Income	298	447	938	907
Total Non-Interest Income	8,256	7,609	16,884	15,448
NON-INTEREST EXPENSE
Salaries and Employee Benefits	15,097	14,086	30,019	27,641
Occupancy Expenses, Net	2,101	1,952	4,560	3,974
Technology and Equipment Expense	4,757	5,589	9,809	10,676
FDIC Assessments	441	649	1,026	1,319
Other Operating Expense	5,068	3,376	8,915	8,087
Total Non-Interest Expense	27,464	25,652	54,329	51,697
INCOME BEFORE PROVISION FOR INCOME TAXES	13,896	13,896	31,241	22,028
Provision for Income Taxes	2,934	3,091	6,794	4,913
NET INCOME	$ 10,962	$ 10,805	$ 24,447	$ 17,115
Average Shares Outstanding:
Basic (in shares)	16,428,000	16,545,000	16,408,000	16,611,000
Diluted (in shares)	16,467,000	16,551,000	16,438,000	16,618,000
Per Common Share:
Basic Earnings (in dollars per share)	$ 0.66	$ 0.65	$ 1.48	$ 1.03
Diluted Earnings (in dollars per share)	$ 0.66	$ 0.65	$ 1.48	$ 1.03
Income From Fiduciary Activities
NON-INTEREST INCOME
Revenue from contract with customer	$ 2,706	$ 2,398	$ 5,419	$ 4,933
Fees for Other Services to Customers
NON-INTEREST INCOME
Revenue from contract with customer	$ 2,969	$ 2,787	$ 5,696	$ 5,387

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net Income	$ 24,447	$ 17,115
Provision for Credit Losses	3,375	5,613
Depreciation and Amortization	2,576	2,619
Net gain on equity securities	(300)	(277)
Loans originated and held-for-sale	(14,427)	(14,514)
Proceeds from the sale of loans held-for-sale	17,478	11,013
Net gain on the sale of loans	(444)	(314)
Net loss (gain) on the sale of premises and equipment, other real estate owned and repossessed assets	87	(59)
Contributions to retirement benefit plans	(352)	(339)
Deferred income tax benefit	(2,379)	(123)
Settlement of purchased Energy Production Tax Credits	(5,920)	0
Shares issued under the Directors’ Stock Plan	241	251
Stock-based compensation expense	551	422
Tax benefit from exercise of stock options	252	111
Net (increase) decrease in Other Assets	(216)	1,027
Net increase (decrease) in Other Liabilities	6,069	(2,197)
Net Cash Provided By Operating Activities	31,038	20,348
Cash Flows from Investing Activities:
Proceeds from maturities, calls, and principal repayments of securities AFS	36,730	68,437
Purchases of securities AFS	(43,152)	(39,623)
Proceeds from maturities, calls, and principal repayments of securities HTM	23,485	33,932
Purchases of securities HTM	(22,019)	(6,570)
Net increase in loans	(49,182)	(42,488)
Proceeds from sales of premises and equipment, OREO and repos	1,357	1,439
Purchases of premises and equipment	(5,510)	(3,276)
Purchase of FHLB stock	(13,979)	(204)
Net Cash (Used) Provided By Investing Activities	(72,270)	11,647
Cash Flows from Financing Activities:
Net change in deposits	(284,264)	101,400
Finance lease payments	(42)	(36)
Increase in Borrowings	305,925	0
Net cash collateral received from (paid to) derivative counterparties	1,650	(1,710)
Purchase of treasury stock	(483)	(8,654)
Stock options exercised, net	810	102
Shares issued under ESPP	153	165
Cash dividends paid	(9,912)	(9,360)
Net Cash Provided By Financing Activities	13,837	81,907
Net (Decrease) Increase in Cash and Cash Equivalents	(27,395)	113,902
Cash and Cash Equivalents at Beginning of Period	214,183	154,546
Cash and Cash Equivalents at End of Period	186,788	268,448
Supplemental Disclosures to Statements of Cash Flow Information:
Interest on deposits and borrowings	36,413	37,730
Income taxes	9,123	4,207
Transfer of loans to other real estate owned and repossessed assets	1,494	1,431
Total fair value of Commercial Loan Participation transferred to Other Assets	$ 0	$ 10,648

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and Due From Banks	$ 30,881	$ 29,132
Interest-Earning Deposits at Banks	155,907	185,051
Investment Securities:
Available-for-Sale at Fair Value	498,202	495,868
Held-to-Maturity (Fair Value of $65,270 at June 30, 2026 and $66,569 at December 31, 2025)	65,490	66,975
Equity Securities	5,897	5,597
Other Investments	18,351	4,372
Loans	3,496,541	3,453,093
Allowance for Credit Losses	(36,183)	(34,322)
Net Loans	3,460,358	3,418,771
Premises and Equipment, Net	62,530	59,433
Goodwill	23,789	23,789
Other Intangible Assets, Net	1,612	1,741
Other Assets	159,342	155,133
Total Assets	4,482,359	4,445,862
LIABILITIES
Noninterest-Bearing Deposits	736,087	722,374
Interest-Bearing Checking Accounts	871,965	862,192
Savings Deposits	1,590,680	1,557,638
Time Deposits over $250	132,350	155,802
Other Time Deposits	324,123	641,463
Total Deposits	3,655,205	3,939,469
Borrowings	310,190	4,265
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000	20,000
Finance Leases	4,887	4,929
Other Liabilities	45,771	45,347
Total Liabilities	4,036,053	4,014,010
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value; 1,000,000 Shares Authorized at June 30, 2026 and December 31, 2025 (none issued)	0	0
Common Stock, $1 Par Value: 30,000,000 Shares Authorized; 22,066,559 Shares Issued and 16,545,170 and 16,445,342 outstanding at June 30, 2026 and December 31, 2025	22,067	22,067
Additional Paid-in Capital	415,357	414,506
Retained Earnings	116,806	102,271
Accumulated Other Comprehensive Loss	(5,390)	(4,037)
Treasury Stock, at Cost (5,521,389 Shares at June 30, 2026 and 5,621,217 Shares at December 31, 2025)	(102,534)	(102,955)
Total Stockholders’ Equity	446,306	431,852
Total Liabilities and Stockholders’ Equity	$ 4,482,359	$ 4,445,862