Arrow Financial (US:AROW)2025-07-24 11:46Financial Performance - Net income for Q2 2025 was $10.8 million, or $0.65 per share, compared to $6.3 million and $0.38 per share in Q1 2025, representing a significant increase [2]. - Net income for Q2 2025 reached $10,805,000, representing a 26% increase compared to $8,604,000 in Q2 2024 [19]. - Net income for the quarter ended June 30, 2025, was $10,805,000, an increase of 71.5% compared to $6,310,000 for the previous quarter [22]. - Basic earnings per share for Q2 2025 were $0.65, up from $0.52 in Q2 2024, marking a 25% increase [19]. - Basic earnings per share (EPS) for the quarter was $0.65, up from $0.38 in the previous quarter, representing a 71.1% increase [22]. Interest Income and Margin - Record net interest income reached $32.5 million, up 3.8% from $31.4 million in Q1 2025 [9]. - Total interest and dividend income for Q2 2025 was $51,573,000, an increase of 7% from $47,972,000 in Q2 2024 [19]. - Net interest income after provision for credit losses for the first half of 2025 was $58,277,000, up 11% from $52,215,000 in the same period of 2024 [19]. - Net interest income for the quarter was $32,533,000, compared to $31,357,000 in the previous quarter, reflecting a growth of 3.7% [27]. - Net interest margin improved to 3.15% from 3.07% in the previous quarter, with FTE net interest margin at 3.16% [9]. - Net Interest Margin improved to 3.15% in Q2 2025 from 2.67% in Q2 2024 [31]. - The net interest spread for Q2 2025 was 2.60%, compared to 2.04% in Q2 2024 [31]. Assets and Loans - Total assets decreased by $34.2 million, or 0.8%, to $4.4 billion as of June 30, 2025 [13]. - Total assets as of June 30, 2025, were $4,414,719,000, a growth of 2.5% from $4,306,348,000 at the end of 2024 [20]. - Loans increased to $3,424,754,000 as of June 30, 2025, compared to $3,394,541,000 at the end of 2024, reflecting a growth of 0.9% [20]. - Total loans were $3.4 billion, with a loan growth of $7.9 million driven by residential real estate loans [13]. - Total loans increased to $3,424,754 million as of June 30, 2025, up from $3,394,541 million at December 31, 2024, representing a growth of 0.88% [39]. Credit Losses and Allowance - The allowance for credit losses was $34.2 million, representing 1.00% of loans outstanding, down from 1.11% in Q1 2025 [13]. - The provision for credit losses for the first half of 2025 was $5,613,000, significantly higher than $1,392,000 in the first half of 2024 [19]. - The allowance for credit losses increased to $35,238 in Q2 2025 from $31,459 in Q2 2024 [31]. - The provision for credit losses for the quarter was $594 million, down from $2,854 million in the previous quarter, reflecting a decrease in anticipated credit losses [39]. - The allowance for credit losses to period-end loans ratio was 1.00%, compared to 0.99% in the previous quarter, indicating stable coverage [39]. Equity and Dividends - Total stockholders' equity as of June 30, 2025, was $408,506,000, an increase from $400,901,000 at the end of 2024 [20]. - Total stockholders' equity increased to $408,506,000 from $404,409,000 in the previous quarter [26]. - The company declared a quarterly cash dividend of $0.29 per share, an increase of 3.6% from the prior quarter [2]. Asset Quality - Nonperforming loans decreased to $6,417 million from $21,039 million, showing a substantial improvement in asset quality [39]. - The ratio of nonperforming loans to period-end loans improved to 0.19% from 0.62% [39]. - Nonperforming assets totaled $7,007 million, down from $21,497 million, indicating a positive trend in asset management [39]. - Year-to-date net loans charged-off reached $5,020 million, up from $2,847 million in the previous year, highlighting ongoing credit challenges [39].