Arrow Financial (US:AROW)2021-11-03 16:00Financial Performance - Arrow Financial Corporation reported a net interest income of $XX million for the quarter, reflecting a year-over-year increase of XX%[161] - Net income for the quarter ended September 30, 2021, was $12,989,000, a decrease from $13,279,000 in the previous quarter[162] - Basic and diluted earnings per share for the quarter were both $0.81, compared to $0.83 in the previous quarter[162] - Net income for the nine months ended September 30, 2021, was $39,548,000, compared to $28,332,000 for the same period in 2020, representing an increase of 39.0%[170] - Basic earnings per share increased to $2.47 for the nine months ended September 30, 2021, up from $1.78 in the same period of 2020[170] - Net income for Q3 2021 was $13.0 million, up from $11.0 million in Q3 2020, representing a 18.2% increase[185] - Diluted EPS for Q3 2021 was $0.81, a 17.4% increase from $0.69 in Q3 2020[185] Asset and Equity Growth - Total stockholders' equity increased to $360,171,000 from $353,033,000 in the previous quarter[164] - Stockholders' equity increased to $360.2 million, a 7.7% increase from $334.4 million at the end of 2020[186] - Total assets increased to $3,902,041,000 from $3,851,921,000 in the previous quarter[162] - Total assets as of September 30, 2021, were $3,902,041,000, an increase from $3,583,322,000 in 2020[178] - Tangible book value per share increased to $20.99 from $20.52 in the previous quarter[164] - Book value per share was $22.48, up 10.1% from the prior year[186] Efficiency and Cost Management - The efficiency ratio improved to XX%, indicating better expense control compared to the previous quarter[158] - The efficiency ratio improved to 52.56% for the nine months ended September 30, 2021, from 53.54% in the same period of 2020, indicating better expense control[170] - Noninterest expense for Q3 2021 was $19.4 million, an increase from $17.5 million in Q3 2020[185] - Noninterest expense for the first nine months of 2021 was $57.2 million, an increase of $4.7 million, or 9.0%, from the first nine months of 2020[256] Lending and Deposits - The company anticipates a growth in total assets by approximately XX% over the next fiscal year, driven by increased lending activities[153] - The company reported a XX% increase in customer deposits, totaling $XX billion, indicating strong customer confidence[161] - Total loans as of September 30, 2021, were $2.7 billion, with a loan growth of $10.7 million in Q3 2021, and a 2.4% increase from the previous year[185] - Deposit balances increased to $3.6 billion, with a $167.5 million increase in Q3 2021 and a 10.4% increase from the prior year[185] - Total deposits reached $3.6 billion, up $370.8 million or 11.5% from the previous year, with noninterest-bearing deposits at 23.4% of total deposits[196] Credit Quality and Allowance for Losses - Arrow's allowance for credit losses was maintained at $XX million, representing XX% of total loans, reflecting a cautious approach amid economic uncertainties[154] - The allowance for credit losses was $27,040,000, compared to $26,310,000 in the previous year[178] - The allowance for credit losses to total loans ratio was 1.02% at September 30, 2021, down from 1.10% a year earlier[219] - Nonperforming loans increased to $11,345 thousand as of September 30, 2021, compared to $6,282 thousand a year earlier, representing an increase of 80.5%[215] - Total nonperforming assets rose to $11,696 thousand as of September 30, 2021, up from $6,408 thousand a year earlier, indicating a 82.5% increase[215] Investment and Technology - Arrow is investing in technology upgrades, with a budget of $XX million aimed at enhancing digital banking services[153] - The company is exploring potential acquisition opportunities to enhance its service offerings and market share[152] - The securities available-for-sale portfolio increased to $486.9 million as of September 30, 2021, up $121.6 million from year-end 2020[239] Forward-Looking Statements and Risks - Arrow's forward-looking statements indicate expectations regarding asset quality and liquidity sources, with potential impacts from economic conditions and regulatory changes[153] - The company continues to monitor the impact of the COVID-19 pandemic on its operations and financial conditions[184] - Arrow is not obligated to update forward-looking statements after the report date, highlighting the inherent risks and uncertainties in predicting future performance[155]