Arrow Reports $9.2 million in Q2 Net Income as COVID-19 Response Continues

GLENS FALLS, N.Y., July 21, 2020 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three-month period ended June 30, 2020. Net income for the second quarter of 2020 was $9.2 million, compared to $8.9 million in the second quarter of 2019. Net interest income increased to $24.8 million in the second quarter of 2020, compared to $21.7 million for the comparable quarter of 2019.

Arrow continues to manage its COVID-19 response with health and safety concerns as a top priority. In the second quarter, as COVID-19 cases regionally declined and New York State Governor Andrew Cuomo began to lift restrictions, our bank lobbies reopened with significant safety protocols in place. However, a significant portion of our workforce continues to work remotely, and the Company remains focused on providing essential banking services and meeting customer needs, while maintaining proper health and safety protocols for our employees and our customers.

"The COVID-19 pandemic has undoubtedly confirmed our mission," said Thomas J. Murphy, President and CEO. "I am amazed at how our team has faced each challenge head-on in support of our customers and communities. In the second quarter, we provided Paycheck Protection Program loans to support more than 18,000 jobs at more than 1,400 local businesses. We also guided our customers through other stimulus programs, and we continue to work with those in need of temporary financial assistance. Through uncertain times, we are moving forward, together, with a focus on safety and service."

The following expands on our COVID-19 response:

COVID-19 Safety Measures: In June, Arrow began to lift appointment-only restrictions for our bank lobbies and some of our insurance offices in response to the declining number of COVID-19 cases regionally and New York State's phased reopening. Lobbies were opened with robust safety measures in place, including clear shields for desks and teller lines, hand sanitizing stations, required face coverings, and social distancing markers. Traffic has returned to lobbies at a manageable pace, and we continue to promote usage of no-contact alternatives such as digital banking, drive-ins and ATMs. While some positions have returned to the office, a significant portion of the Arrow workforce remains remote as part of our risk-mitigation strategy. Additionally, employee travel remains paused, self-quarantine protocol is in place for personal travel to hot spots, in-person meetings remain minimized, social distancing is strongly enforced, and increased cleaning and sanitizing of our locations continues. We believe these measures have helped to keep our workforce healthy and has aided in community efforts to slow the spread of the COVID-19 virus in our footprint. We will continue to utilize these measures as appropriate based on public health guidance.

COVID-19 Customer Support: Another significant aspect of Arrow's COVID-19 response has been support for customers experiencing financial hardship due to the mandated closure of non-essential businesses in New York State and the resulting rise in unemployment. Demand for the Small Business Administration's Paycheck Protection Program was tremendous in the second quarter. Arrow assisted more than 1,400 small businesses in our communities, resulting in more than $140 million in funding in support of more than 18,000 jobs. After two waves of funding, interest in these loan programs slowed and we are now engaged in supporting borrowers with the loan forgiveness process. This all-hands-on-deck effort continues to be a significant and positive contribution to our business customers, whose businesses are essential to the health of our local economies.

In the second quarter, we also worked closely with individuals and businesses seeking temporary financial assistance. That assistance is ongoing, and we also continue to guide our customers through other stimulus programs and provided COVID-19 fraud awareness.

COVID-19 Operational Impact: While COVID-19 did not have a material adverse effect on our second quarter 2020 financial results, we are actively monitoring the impact of the pandemic on our business and results of operations. Currently, all of our banking locations and some of our insurance locations are open to the public, and through a mix of onsite and remote work amongst our team, we continue to meet customer needs and deliver high-quality service daily. The slowing economy and deteriorating economic outlook may lead to the continuation of elevated unemployment and decreased consumer and commercial spending. These factors may have adverse effects on the following: our customer deposits, the ability of our borrowers to satisfy their obligations, and the demand for loans and our other financial products and services, which may negatively impact the Company. Although Arrow has taken, and will continue to take, steps to mitigate against the impact of the pandemic on its operations, it cannot provide any assurance that these actions will be successful.

The following expands upon our second-quarter results:

Loan Growth: Total loans reached $2.6 billion as of June 30, 2020, which represents an increase of $281.6 million, or 12.3% from June 30, 2019. The consumer loan portfolio grew by $49.5 million, or 6.4%, as compared to June 30, 2019, primarily within the indirect automobile lending program. Total outstanding residential real estate loans increased $51.0 million, or 5.8%, as compared to June 30, 2019. Total outstanding commercial loans increased $181.1 million, or 28.8%, as compared to June 30, 2019. The increase in commercial loans includes $140.0 million in Small Business Administration Paycheck Protection Program loans.

Deposit Growth: At June 30, 2020, deposit balances reached $3.1 billion, up $565.0 million, or 22.6%, from the prior-year level. Noninterest-bearing deposits represented 21.8% of total deposits at June 30, 2020, compared to 18.7% of total deposits on June 30, 2019. At June 30, 2020, other time deposits were $216.6 million, a decrease of $72.7 million compared to the prior year. Municipal deposits increased $155.6 million, or 27.2% from June 30, 2019. Total combined Federal Home Loan Bank Overnight and Term Advances declined $66.6 million from June 30, 2019.

Net Interest Income: Net interest income for the second quarter increased to $24.8 million, up 14.4% from $21.7 million in the comparable quarter of 2019. The net interest margin was 3.05% for the quarter, compared to 3.04% for the second quarter of 2019. The increase in net interest margin from the prior year was primarily the result of the increase in the deposit balances as described above, combined with the decrease in market rates.

Noninterest Income: Noninterest income for the three months ended June 30, 2020 was $7.2 million, compared to $6.9 million in the comparable 2019 quarter. For the second quarter of 2020, the fair value of equity securities at June 30, 2020 decreased by $107 thousand. In addition, income of $547 thousand related to net gain on the sale of loans was recorded in the second quarter of 2020.

Noninterest Expense: Noninterest expense for the second quarter of 2020 increased 2.0% to $17.2 million, from $16.9 million for the second quarter of 2019. Salaries and benefits increased $0.5 million, which was primarily the result of increased cost of health insurance benefits.

Provision for Income Taxes: The provision for income taxes was $2.6 million for the second quarter of 2020, compared to $2.3 million for the same quarter of 2019. The effective income tax rates for the six-month periods ended June 30, 2020 and 2019 were 21.1% and 20.1%, respectively.

Asset Quality: Asset quality remained strong at June 30, 2020, with continued low levels of nonperforming loans and net charge-offs. Nonperforming loans at June 30, 2020, were $6.5 million, up $964 thousand from the level at June 30, 2019. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.06% for the three-month period ended June 30, 2020, consistent with December 31, 2019, and an increase from 0.02% for the three-month period ended June 30, 2019. The allowance for loan losses was $26.3 million at June 30, 2020, which represented 1.03% of loans outstanding, as compared to 0.91% at June 30, 2019. Loan loss provision expense for the second quarter of 2020 was $3.0 million, up $2.6 million from the provision for loan losses for the comparable 2019 quarter. Although credit quality remains strong, the increase in loss provision for loan losses reflects the uncertainty resulting from the COVID-19 pandemic. In the second quarter, we continued to work closely with individuals and businesses seeking temporary financial assistance.

Liquidity: At June 30, 2020, Arrow's liquidity position was strong, and provides flexibility to address unexpected near-term disruptions that may develop as a result of the COVID-19 pandemic, such as: reduced cash-flows from the investment and loan portfolios and aggressive funding of programs associated with response efforts, including the Small Business Administration Paycheck Protection Program.  Interest-bearing cash balances at June 30, 2020 were $215.0 million compared to $28.0 million at June 30, 2019.  At June 30, 2020, contingent collateralized lines of credit were established and available through the Federal Home Loan Bank of New York and Federal Reserve Bank, totaling $1.3 billion.  Arrow also has additional liquidity options available to it including unsecured lines of credit, such as Fed Funds and brokered markets.

Capital: Total stockholders' equity was $317.7 million at June 30, 2020, up $33.0 million, or 11.6%, from June 30, 2019. Arrow's capital reserves are well positioned to address the uncertainties related to the COVID-19 pandemic. Arrow's consistent earnings and measured dividend practices have created strong capital reserves. Overall regulatory capital ratios also remained strong in 2020, with Arrow's common equity tier 1 ratio estimated to be 13.07% and the total risk-based capital ratio estimated to be 15.10% at June 30, 2020. These capital levels at Arrow and both of the subsidiary banks continue to exceed the "well capitalized" regulatory standard.

Cash and Stock Dividends: On June 15, 2020, the Company distributed a cash dividend of $0.26 per share. The cash dividend was 3% higher than the cash dividend paid by the Company in the second quarter of 2019 when adjusted for the 3% stock dividend distributed on September 27, 2019.

Industry Recognition: Both of Arrow's banking subsidiaries, Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company, continue to hold BauerFinancial, Inc. 5-Star Superior Bank rating.

About Arrow: Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include Upstate Agency, LLC and North Country Investment Advisers, Inc.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent, and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."

Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future, including, in particular, statements regarding the uncertainty surrounding the COVID-19 pandemic. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. The Company undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2019, and other filings with the Securities and Exchange Commission.

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts - Unaudited)




Three Months Ended June 30


Six Months Ended June 30,




2020


2019


2020


2019


INTEREST AND DIVIDEND INCOME










Interest and Fees on Loans


$

25,077



$

23,520



$

49,951



$

45,923


Interest on Deposits at Banks


41



195



165



390


Interest and Dividends on Investment Securities:










    Fully Taxable


1,871



2,284



4,064



4,653


    Exempt from Federal Taxes


1,013



1,228



2,048



2,474


          Total Interest and Dividend Income


28,002



27,227



56,228



53,440


INTEREST EXPENSE










Interest-Bearing Checking Accounts


310



453



797



935


Savings Deposits


1,173



2,008



3,644



3,609


Time Deposits over $250,000


438



515



971



911


Other Time Deposits


784



1,131



1,784



1,844


Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase


16



25



38



47


Federal Home Loan Bank Advances


217



1,099



646



2,693


Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts


173



261



401



530


Interest on Financing Leases


49



28



99



43


         Total Interest Expense


3,160



5,520



8,380



10,612


NET INTEREST INCOME


24,842



21,707



47,848



42,828


Provision for Loan Losses


3,040



455



5,812



927


NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES


21,802



21,252



42,036



41,901


NONINTEREST INCOME










Income From Fiduciary Activities


2,135



2,252



4,348



4,359


Fees for Other Services to Customers


2,278



2,545



4,729



4,947


Insurance Commissions


1,732



1,935



3,364



3,654


Net (Loss) Gain on Securities


(106)





(480)



76


Net Gain on Sales of Loans


547



140



760



244


Other Operating Income


578



24



2,137



503


    Total Noninterest Income


7,164



6,896



14,858



13,783


NONINTEREST EXPENSE









Salaries and Employee Benefits


10,212



9,727



20,595



19,046


Occupancy Expenses, Net


1,345



1,279



2,794



2,699


Technology and Equipment Expense


3,227



3,243



6,579



6,384


FDIC Assessments


242



212



461



424


Other Operating Expense


2,219



2,447



4,570



5,007


    Total Noninterest Expense


17,245



16,908



34,999



33,560


INCOME BEFORE PROVISION FOR INCOME TAXES


11,721



11,240



21,895



22,124


Provision for Income Taxes


2,562



2,306



4,609



4,456


NET INCOME


$

9,159



$

8,934



$

17,286



$

17,668


Average Shares Outstanding 1:










Basic


14,992



14,922



14,994



14,912


Diluted


14,998



14,963



15,010



14,958


Per Common Share:










Basic Earnings


$

0.61



$

0.60



$

1.15



$

1.19


Diluted Earnings


0.61



0.60



1.15



1.18


12019 Share and Per Share Amounts have been restated for the September 27, 2019, 3% stock dividend.


 

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts - Unaudited)




















June 30,
2020


December 31,
2019


June 30,
2019

ASSETS






Cash and Due From Banks

$

38,267



$

47,035



$

34,650


Interest-Bearing Deposits at Banks

215,003



23,186



28,045


Investment Securities:






    Available-for-Sale at Fair Value

378,778



357,334



285,878


    Held-to-Maturity (Approximate Fair Value of $241,875 at
    June 30, 2020; $249,618 at December 31, 2019; and $
    266,068 at June 30, 2019)

233,517



245,065



262,541


    Equity Securities

1,583



2,063



1,850


    FHLB and Federal Reserve Bank Stock

5,574



10,317



8,202


Loans

2,561,915



2,386,120



2,280,308


    Allowance for Loan Losses

(26,300)



(21,187)



(20,695)


    Net Loans

2,535,615



2,364,933



2,259,613


Premises and Equipment, Net

41,231



40,629



38,836


Goodwill

21,873



21,873



21,873


Other Intangible Assets, Net

1,662



1,661



1,730


Other Assets

74,074



70,179



62,532


    Total Assets

$

3,547,177



$

3,184,275



$

3,005,750


LIABILITIES






Noninterest-Bearing Deposits

667,585



484,944



467,179


Interest-Bearing Checking Accounts

791,521



689,221



741,395


Savings Deposits

1,262,102



1,046,568



908,642


Time Deposits over $250,000

130,935



123,968



97,220


Other Time Deposits

216,630



271,353



289,317


    Total Deposits

3,068,773



2,616,054



2,503,753


Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase

47,599



51,099



51,149


Federal Home Loan Bank Overnight Advances



130,000



83,000


Federal Home Loan Bank Term Advances

50,000



30,000



30,000


Junior Subordinated Obligations Issued to Unconsolidated
Subsidiary Trusts

20,000



20,000



20,000


Finance Leases

5,239



5,254



5,270


Other Liabilities

37,879



30,140



27,929


    Total Liabilities

3,229,490



2,882,547



2,721,101


STOCKHOLDERS' EQUITY






Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2020, December 31, 2019 and June 30, 2019






Common Stock, $1 Par Value; 30,000,000 Shares Authorized at June 30, 2020 and December 31, 2019 and 20,000,000 Shares Authorized at June 30, 2019 (19,606,449 Shares Issued at June 30, 2020 and December 31, 2019 and 19,035,565 at June 30, 2019)

19,606



19,606



19,035


Additional Paid-in Capital

336,643



335,355



316,229


Retained Earnings

42,704



33,218



39,397


Unallocated ESOP Shares (None at June 30, 2020 and December 31, 2019 and 5,001 Shares at June 30, 2019)





(100)


Accumulated Other Comprehensive Loss

(276)



(6,357)



(9,647)


Treasury Stock, at Cost (4,595,891 Shares at June 30, 2020; 4,608,258 Shares at December 31, 2019 and 4,517,412 Shares at June 30, 2019)

(80,990)



(80,094)



(80,265)


    Total Stockholders' Equity

317,687



301,728



284,649


          Total Liabilities and Stockholders' Equity

$

3,547,177



$

3,184,275



$

3,005,750


 

Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts - Unaudited)























Quarter Ended

6/30/2020


3/31/2020


12/31/2019


9/30/2019


6/30/2019

Net Income

$

9,159



$

8,127



$

9,740



$

10,067



$

8,934


Transactions in Net Income (Net of Tax):




















Net Changes in Fair Value of Equity Investments

(80)



(279)



50



109
























Share and Per Share Data:1










Period End Shares Outstanding

15,011



14,982



14,998



14,969



14,949


Basic Average Shares Outstanding

14,992



14,996



14,978



14,955



14,922


Diluted Average Shares Outstanding

14,998



15,026



15,026



14,991



14,963


Basic Earnings Per Share

$

0.61



$

0.54



$

0.65



$

0.67



$

0.60


Diluted Earnings Per Share

0.61



0.54



0.65



0.67



0.60


Cash Dividend Per Share

0.260



0.260



0.260



0.252



0.252












Selected Quarterly Average Balances:










    Interest-Bearing Deposits at Banks

$

155,931



$

32,787



$

28,880



$

27,083



$

25,107


    Investment Securities

607,094



603,748



582,982



545,073



584,679


    Loans

2,518,198



2,394,346



2,358,110



2,308,879



2,255,299


    Deposits

2,952,432



2,670,009



2,607,421



2,472,528



2,436,290


    Other Borrowed Funds

129,383



170,987



177,877



231,291



250,283


    Shareholders' Equity

316,380



306,527



296,124



289,016



280,247


    Total Assets

3,437,155



3,180,857



3,113,114



3,023,043



2,997,458


Return on Average Assets, annualized

1.07

%


1.03

%


1.24

%


1.32

%


1.20

%

Return on Average Equity, annualized

11.64

%


10.66

%


13.05

%


13.82

%


12.79

%

Return on Average Tangible Equity, annualized 2

12.58

%


11.55

%


14.18

%


15.05

%


13.96

%

Average Earning Assets

$

3,281,223



$

3,030,881



$

2,969,972



$

2,881,035



$

2,865,085


Average Paying Liabilities

2,457,690



2,362,515



2,293,804



2,213,642



2,235,462


Interest Income

28,002



28,226



28,367



27,952



27,227


Tax-Equivalent Adjustment 3

281



288



321



344



376


Interest Income, Tax-Equivalent 3

28,283



28,514



28,688



28,296



27,603


Interest Expense

3,160



5,220



5,449



5,649



5,520


Net Interest Income

24,842



23,006



22,918



22,303



21,707


Net Interest Income, Tax-Equivalent 3

25,123



23,294



23,239



22,647



22,083


Net Interest Margin, annualized

3.05

%


3.05

%


3.06

%


3.07

%


3.04

%

Net Interest Margin, Tax-Equivalent, annualized 3

3.08

%


3.09

%


3.10

%


3.12

%


3.09

%











Efficiency Ratio Calculation: 4










Noninterest Expense

$

17,245



$

17,754



$

17,099



$

16,791



$

16,908


Less: Intangible Asset Amortization

57



58



60



61



44


Net Noninterest Expense

$

17,188



$

17,696



$

17,039



$

16,730



$

16,864


Net Interest Income, Tax-Equivalent

$

25,123



$

23,294



$

23,238



$

22,647



$

22,083


Noninterest Income

7,164



7,694



7,081



7,691



6,896












Less: Net Changes in Fair Value of Equity Invest.

(106)



(374)



67



146




  Net Gross Income

$

32,393



$

31,362



$

30,252



$

30,192



$

28,979


Efficiency Ratio

53.06

%


56.42

%


56.32

%


55.41

%


58.19

%











Period-End Capital Information:










Total Stockholders' Equity (i.e. Book Value)

$

317,687



$

309,398



$

301,728



$

292,228



$

284,649


Book Value per Share 1

21.16



20.65



20.12



19.52



19.04


Goodwill and Other Intangible Assets, net

23,535



23,513



23,534



23,586



23,603


Tangible Book Value per Share 1,2

19.60



19.08



18.55



17.95



17.46












Capital Ratios:5




















Tier 1 Leverage Ratio

9.32

%


9.87

%


9.98

%


10.04

%


9.88

%

Common Equity Tier 1 Capital Ratio

13.07

%


12.77

%


12.94

%


12.93

%


12.99

%

Tier 1 Risk-Based Capital Ratio

13.94

%


13.65

%


13.83

%


13.85

%


13.93

%

Total Risk-Based Capital Ratio

15.10

%


14.68

%


14.78

%


14.81

%


14.91

%











Assets Under Trust Admin. & Investment Mgmt.

$

1,502,866



$

1,342,531



$

1,543,653



$

1,485,116



$

1,496,966


 

Arrow Financial Corporation
Selected Quarterly Information - Continued
(Dollars In Thousands, Except Per Share Amounts - Unaudited)









Footnotes:









1.

Share and Per Share Data have been restated for the September 27, 2019, 3% stock dividend









2.

Non-GAAP Financial Measures Reconciliation: Tangible Book Value and Tangible Equity exclude goodwill and other intangible assets, net from total equity.  These are non-GAAP financial measures which Arrow believes provides investors with information that is useful in understanding its financial performance.






6/30/2020


3/31/2020


12/31/2019


9/30/2019


6/30/2019




Total Stockholders' Equity (GAAP)

$

317,687



$

309,398



$

301,728



$

292,228



$

284,649




Less: Goodwill and Other Intangible assets, net

23,535



23,513



23,534



23,586



23,603




Tangible Equity (Non-GAAP)

$

294,152



$

285,885



$

278,194



$

268,642



$

261,046

















Period End Shares Outstanding

15,011



14,982



14,998



14,969



14,949




Tangible Book Value per Share (Non-GAAP)

$

19.60



$

19.08



$

18.55



$

17.95



$

17.46




Net Income

9,159



8,127



9,740



10,067



8,934




Return on Average Tangible Equity (Net Income/Tangible Equity - Annualized)

12.58

%


11.55

%


14.18

%


15.05

%


13.96

%















3.

Non-GAAP Financial Measures Reconciliation: Net Interest Margin, Tax-Equivalent is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which Arrow believes provides investors with information that is useful in understanding its financial performance.





6/30/2020


3/31/2020


12/31/2019


9/30/2019


6/30/2019




Interest Income (GAAP)

$

28,002



$

28,226



$

28,367



$

27,952



$

27,227




Add: Tax-Equivalent adjustment
(Non-GAAP)

281



288



321



344



376




Interest Income - Tax Equivalent
(Non-GAAP)

$

28,283



$

28,514



$

28,688



$

28,296



$

27,603




Net Interest Income (GAAP)

$

24,842



$

23,006



$

22,918



$

22,303



$

21,707




Add: Tax-Equivalent adjustment
(Non-GAAP)

281



288



321



344



376




Net Interest Income - Tax Equivalent
(Non-GAAP)

$

25,123



$

23,294



$

23,239



$

22,647



$

22,083




Average Earning Assets

$

3,281,223



$

3,030,881



$

2,969,972



$

2,881,035



$

2,865,085




Net Interest Margin (Non-GAAP)*

3.08

%


3.09

%


3.10

%


3.12

%


3.09

%















4.

Non-GAAP Financial Measures: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of noninterest expense to net gross income (which equals tax-equivalent net interest income plus noninterest income, as adjusted).
















5.

For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk-Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with, bank regulatory capital rules. All prior quarters reflect actual results. The CET1 ratio at June 30, 2020 listed in the tables (i.e., 13.07%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).





6/30/2020


3/31/2020


12/31/2019


9/30/2019


6/30/2019




Total Risk Weighted Assets

$

2,283,430



$

2,287,834



$

2,237,127



$

2,184,214



$

2,121,541




Common Equity Tier 1 Capital

298,362



292,165



289,409



282,485



275,528




Common Equity Tier 1 Ratio

13.07

%


12.77

%


12.94

%


12.93

%


12.99

%










  * Quarterly ratios have been annualized






 

Arrow Financial Corporation
Consolidated Financial Information
(Dollars in Thousands - Unaudited)



















Quarter Ended:

6/30/2020


12/31/2019


6/30/2019

Loan Portfolio






Commercial Loans

$

276,671



$

150,660



$

138,331


Commercial Real Estate Loans

533,032



510,541



490,274


    Subtotal Commercial Loan Portfolio

809,703



661,201



628,605


Consumer Loans

828,493



811,198



779,024


Residential Real Estate Loans

923,719



913,721



872,679


    Total Loans

$

2,561,915



$

2,386,120



$

2,280,308


Allowance for Loan Losses






Allowance for Loan Losses, Beginning of Quarter

$

23,637



$

20,931



$

20,373


Loans Charged-off

(487)



(503)



(368)


Less Recoveries of Loans Previously Charged-off

110



125



235


    Net Loans Charged-off

(377)



(378)



(133)


Provision for Loan Losses

3,040



634



455


    Allowance for Loan Losses, End of Quarter

$

26,300



$

21,187



$

20,695


Nonperforming Assets






Nonaccrual Loans

$

5,461



$

4,005



$

4,949


Loans Past Due 90 or More Days and Accruing

901



253



457


Loans Restructured and in Compliance with Modified Terms

150



143



142


    Total Nonperforming Loans

6,512



4,401



5,548


Repossessed Assets

116



139



115


Other Real Estate Owned

595



1,122



1,258


    Total Nonperforming Assets

$

7,223



$

5,662



$

6,921


Key Asset Quality Ratios






Net Loans Charged-off to Average Loans,
Quarter-to-date Annualized

0.06

%


0.06

%


0.02

%

Provision for Loan Losses to Average Loans,
Quarter-to-date Annualized

0.49

%


0.11

%


0.08

%

Allowance for Loan Losses to Period-End Loans

1.03

%


0.89

%


0.91

%

Allowance for Loan Losses to Period-End Nonperforming Loans

403.87

%


481.41

%


373.02

%

Nonperforming Loans to Period-End Loans

0.25

%


0.18

%


0.24

%

Nonperforming Assets to Period-End Assets

0.20

%


0.18

%


0.23

%

Six-Month Period Ended:






Allowance for Loan Losses






Allowance for Loan Losses, Beginning of Year

$

21,187





$

20,196


Loans Charged-off

(968)





(830)


Less Recoveries of Loans Previously Charged-off

269





402


    Net Loans Charged-off

(699)





(428)


Provision for Loan Losses

5,812





927


    Allowance for Loan Losses, End of Period

$

26,300





$

20,695


Key Asset Quality Ratios






Net Loans Charged-off to Average Loans, Annualized

0.06

%




0.04

%

Provision for Loan Losses to Average Loans, Annualized

0.48

%




0.08

%

 

Cision View original content:http://www.prnewswire.com/news-releases/arrow-reports-9-2-million-in-q2-net-income-as-covid-19-response-continues-301097029.html

SOURCE Arrow Financial Corporation

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.