Arrow Financial (US:AROW)2025-10-30 11:51Financial Performance - Net income for the third quarter of 2025 was $12.8 million, or $0.77 per share, an increase from $10.8 million and $0.65 per share in the previous quarter[2] - Net income for the three months ended September 30, 2025, was $12,825,000, a 43.5% increase from $8,975,000 in the same period of 2024[18] - Basic earnings per share for the three months ended September 30, 2025, were $0.77, up from $0.54 in 2024, indicating a growth of 42.6%[18] - Net income for the quarter ended September 30, 2025, was $12,825 million, a 18.7% increase from $10,805 million in the previous quarter[21] - Basic earnings per share increased to $0.77, up from $0.65 in the prior quarter, reflecting a 18.5% growth[21] Interest Income and Margin - Record net interest income reached $34.1 million, up 4.9% from $32.5 million in the second quarter of 2025[10] - Net interest income for the quarter was $34,131 million, up from $32,533 million in the previous quarter, indicating a 4.9% increase[26] - Total interest and dividend income for the three months ended September 30, 2025, was $53,598,000, an increase of 8.7% from $49,443,000 in the same period of 2024[18] - Net interest income after provision for credit losses for the nine months ended September 30, 2025, was $91,593,000, up 15% from $79,719,000 in 2024[18] - Net Interest Margin improved to 3.22% from 2.78% in the same quarter last year, indicating enhanced profitability on earning assets[30] Asset Growth - Total assets grew by $172.4 million, or 3.9%, to $4.6 billion as of September 30, 2025[12] - Total assets as of September 30, 2025, reached $4,587,115,000, an increase from $4,306,348,000 at December 31, 2024[19] - Total assets increased to $4,399,815 thousand from $4,245,597 thousand year-over-year, showing a growth of 3.63%[30] Loans and Credit Quality - Total loans amounted to $3.4 billion, with a loan growth of $17.3 million driven by residential and commercial loans[12] - Total loans increased to $3,442,009 million in Q3 2025, up from $3,394,541 million in Q4 2024, representing a growth of 1.4%[37] - Net loans charged-off for the quarter were $830 million, compared to $518 million in the previous quarter, indicating an increase of 60.2%[37] - Nonperforming loans to period-end loans ratio improved to 0.18% in Q3 2025 from 0.62% in Q4 2024, showing a significant improvement in asset quality[37] - The allowance for credit losses was $34.2 million, representing 0.99% of loans outstanding, a slight decrease from 1.00% in the prior quarter[12] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.29 per share, payable on November 24, 2025[2] - Tangible book value per share increased by 2.7% to $23.85 from the prior quarter[10] - Total stockholders' equity increased to $417,687 million from $408,506 million in the previous quarter, a growth of 0.3%[25] Efficiency and Ratios - Return on average assets (ROA) increased to 1.16%, up from 1.00% in the previous quarter[7] - Return on average equity, annualized, rose to 12.32%, compared to 10.66% in the previous quarter[21] - The efficiency ratio improved to 59.56%, down from 63.41% in the previous quarter, indicating better expense control[21] - Common Equity Tier 1 Ratio improved to 13.07% from 12.73% in the previous quarter, indicating a stronger capital position[28]