Arrow Financial (US:AROW)2025-05-01 11:42Financial Performance - Net income for the first quarter of 2025 was $6.3 million, or $0.38 per share, compared to $4.5 million and $0.27 per share in the fourth quarter of 2024[2] - Net income for Q1 2025 was $6,310,000, representing a 40.98% increase from $4,470,000 in Q4 2024 but a decrease of 17.66% from $7,660,000 in Q1 2024[19] - Basic earnings per share for Q1 2025 were $0.38, compared to $0.26 in Q4 2024 and $0.45 in Q1 2024[19] - Basic earnings per share (EPS) for the quarter was $0.38, compared to $0.26 in the previous quarter, reflecting a 46.15% increase[22] Income and Revenue - Net interest income reached a record $31.4 million, an increase of 5.6% from $29.7 million in the previous quarter[6] - Total interest and dividend income for Q1 2025 was $50,366,000, a slight decrease of 1.05% from $50,901,000 in Q4 2024 and an increase of 7.25% from $46,677,000 in Q1 2024[19] - Non-interest income for the first quarter was $7.8 million, significantly higher than $4.2 million in the fourth quarter of 2024[12] - Total non-interest income rose to $7,839,000 in Q1 2025, up from $4,227,000 in Q4 2024 and slightly down from $7,858,000 in Q1 2024[19] Assets and Liabilities - Total assets increased by $142.5 million, or 3.3%, to $4.4 billion as of March 31, 2025[12] - Total assets as of March 31, 2025, were $4,324,917 thousand, slightly down from $4,339,833 thousand at December 31, 2024, a decrease of 0.34%[32] - Total liabilities rose to $4,044,476,000, an increase of 3.56% from $3,905,447,000 at December 31, 2024[20] - Total stockholders' equity increased to $404,409,000, up from $400,901,000 at the end of 2024, reflecting a growth of 0.13%[20] Credit Quality - The provision for credit losses was $5.0 million, up from $2.9 million in the previous quarter, primarily due to a specific reserve of $3.75 million[12] - Provision for credit losses increased significantly to $5,019,000 in Q1 2025 from $2,854,000 in Q4 2024 and $617,000 in Q1 2024, indicating a more cautious outlook on credit quality[19] - The allowance for credit losses increased to $37.8 million, representing 1.11% of loans outstanding, compared to 0.99% at the end of 2024[15] - Allowance for Credit Losses at the end of Q1 2025 was $37,771 thousand, up from $33,598 thousand at the end of Q4 2024, indicating an increase of 12.9%[34] Capital Ratios - Arrow's Common Equity Tier 1 Capital Ratio was 12.59%, exceeding regulatory standards[15] - Common Equity Tier 1 Ratio decreased to 12.59% in Q1 2025 from 12.71% in Q4 2024, indicating a decline of 0.12 percentage points[29] Shareholder Actions - Arrow repurchased $3.4 million worth of shares, totaling 128,047 shares at an average cost of $26.48 per share[9] Efficiency and Returns - The efficiency ratio for the quarter was 66.52%, an improvement from 69.32% in the previous quarter, indicating better expense control[27] - Return on average assets (ROAA) for the quarter was 0.59%, up from 0.41% in the previous quarter[22] - Return on average equity (ROAE) for the quarter was 6.33%, compared to 4.52% in the previous quarter, reflecting a significant increase[22] Loan Performance - Total Loans reached $3,416,868 thousand as of March 31, 2025, compared to $3,394,541 thousand at December 31, 2024, marking an increase of 0.66%[34] - The company reported a net gain on sales of loans of $101,000 in Q1 2025, compared to $74,000 in Q4 2024 and $4,000 in Q1 2024, indicating improved loan sale performance[19] - Nonperforming Assets decreased to $19,459 thousand as of March 31, 2025, down from $21,497 thousand at December 31, 2024, reflecting a reduction of 9.5%[34]