Arrow Reports $11.0 million in Q3 Net Income as COVID-19 Response Continues

GLENS FALLS, N.Y., Oct. 21, 2020 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) announced operating results for the three month and nine month periods ended September 30, 2020.  Net income for the third quarter of 2020 was $11.0 million, compared to $10.1 million in the third quarter of 2019. Net interest income increased to $24.9 million in the third quarter of 2020, compared to $22.3 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 third quarter, our Business Continuity Task Force focused on maintaining protocols that have allowed us to keep our team and customers healthy and our branches open. We actively monitor developments, and if future restrictions are imposed, we are confident in our ability to continue to provide essential banking services and meet our customers' needs.

"Throughout this pandemic, Arrow has remained strong, and we delivered again for our shareholders in the third quarter with solid earnings, and both a cash and stock dividend," said Thomas J. Murphy, President and CEO. "We continued to assist our customers and communities with temporary financial assistance, stimulus program support, and forgiveness assistance for our 1,400 Small Business Administration Paycheck Protection Program borrowers. As these challenging times continue, I thank our team for their commitment to safety while also demonstrating flexibility in adapting to the changing needs of our customers."

In the third quarter, Arrow opened a Saratoga National Bank Branch as well as a Capital Region Business Development Office in Latham, NY. Both locations continue our forward momentum and expansion into the Capital Region. Also in the third quarter, Arrow closed the Glens Falls National Bank Route 9 Queensbury Branch, consolidating the operations of that branch with those of other nearby branches.

The following expands on our COVID-19 response:

COVID-19 Safety Measures: Throughout the third quarter, Arrow maintained open lobbies for the majority of its bank branches and insurance offices. Safety measures continue to be followed, including clear shields for desks and teller lines, hand sanitizing stations, required face coverings, and social distancing markers. Traffic to lobbies is stable, 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 are 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: During the third quarter, support continued for customers experiencing financial hardship. We worked closely with individuals and businesses seeking temporary financial assistance. On the small business side, support for Small Business Administration Paycheck Protection Program borrowers shifted from taking new applications to preparing for loan forgiveness. In total, we have assisted more than 1,400 small businesses, and more than $142.7 million in such loans have been funded. Our team has engaged in regular communication around the ever-changing guidelines and the start of our digital forgiveness application process.

COVID-19 Operational Impact: While COVID-19 did not have a material adverse effect on our third quarter 2020 financial results, we are actively monitoring the impact of the pandemic on our business and results of operations and we can make no assurance as to the future negative impact on our operations or results. 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 following expands upon our third quarter financial results:

Loan Growth: Total loans reached $2.6 billion as of September 30, 2020, which represents an increase of $256.9 million, or 11.0%, from September 30, 2019. Loan growth for the third quarter of 2020 was $30.5 million. The consumer loan portfolio grew by $43.7 million, or 5.4%, as compared to September 30, 2019, primarily within the indirect automobile lending program. Total outstanding residential real estate loans increased $36.2 million, or 4.1%, as compared to September 30, 2019. Total outstanding commercial loans increased $176.9 million, or 27.6%, as compared to September 30, 2019.  The increase in commercial loans includes $142.7 million in Small Business Administration Paycheck Protection Program loans.

Deposit Growth: At September 30, 2020, deposit balances reached $3.3 billion, up $650.3 million, or 24.9%, from the prior-year level. Deposit growth for the third quarter of 2020 was $196.1 million. Noninterest-bearing deposits represented 21.1% of total deposits at September 30, 2020, compared to 19.8% of total deposits on September 30, 2019.  At September 30, 2020, other time deposits were $194.1 million, a decrease of $75.6 million compared to the prior year. Municipal deposits increased $218.8 million, or 34.6% from September 30, 2019.

Net Interest Income: Net interest income for the third quarter increased to $24.9 million, up 11.6% from $22.3 million in the comparable quarter of 2019. The net interest margin was 2.90% for the quarter, compared to 3.07% for the third quarter of 2019. The decrease in net interest margin from the prior year was due to a variety of factors, including lower interest rates, increased cash balances and the impact of participating in the Small Business Administration Paycheck Protection Program.

Noninterest Income: Noninterest income for the three months ended September 30, 2020 was $8.7 million, compared to $7.7 million in the comparable 2019 quarter. For the third quarter of 2020, the net gain on the sale of loans was $1.4 million. In addition, income from fiduciary activities for the three months ended September 30, 2020 increased over the comparable quarter of 2019.

Noninterest Expense: Noninterest expense for the third quarter of 2020 increased 4.1% to $17.5  million, from $16.8 million for the third quarter of 2019. Salaries and benefits increased $393 thousand.  In the third quarter, both the Saratoga National Bank Latham Branch and the Capital Region Business Development Office opened, increasing occupancy expenses for the quarter.

Provision for Income Taxes: The provision for income taxes was $2.8 million for the third quarter of 2020, compared to $2.6 million for the same quarter of 2019. The effective income tax rates for the nine month periods ended September 30, 2020 and 2019 were 20.7% and 20.3%, respectively.

Asset Quality: Asset quality remained strong at September 30, 2020, with continued low levels of nonperforming loans and net charge-offs. Nonperforming loans at September 30, 2020, were $6.3 million, up $1.6 million from the level at September 30, 2019. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.02% for the three month period ended September 30, 2020, a decrease from 0.05% for the three month period ended September 30, 2019. The allowance for loan losses was $28.4 million at September 30, 2020, which represented 1.10% of loans outstanding, as compared to 0.90% at September 30, 2019. Loan loss provision expense for the third quarter of 2020 was $2.3 million, up $1.8 million from the provision for loan losses for the comparable 2019 quarter. Although credit quality remains strong, the increase in provision for loan losses reflects the uncertainty resulting from the COVID-19 pandemic.

Liquidity: At September 30, 2020, Arrow's liquidity position was strong. Deposit growth for the third quarter of 2020 was $196.1 million and interest-bearing cash balances at September 30, 2020 were $396.4 million. Arrow continues to be well-prepared to address volatility due to the COVID-19 pandemic, which may affect current cash and deposit balances. At September 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 $325.7 million at September 30, 2020, up $33.4 million, or 11.4%, from September 30, 2019. Arrow's consistent earnings and measured dividend practices have created strong capital reserves, which make the company well-positioned to address the uncertainties related to the COVID-19 pandemic. Overall regulatory capital ratios also remained strong in 2020, with Arrow's common equity tier 1 ratio estimated to be 13.20% and the total risk-based capital ratio estimated to be 15.28% at September 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 September 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 third quarter of 2019 when adjusted for the 3% stock dividend distributed on September 27, 2019. Additionally, a 3% stock dividend was distributed on September 25, 2020. This is the 12th consecutive year the Company has declared a stock dividend.

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 ratings.

_______

 

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
September 30


Nine Months Ended
September 30,


2020


2019


2020


2019

INTEREST AND DIVIDEND INCOME








Interest and Fees on Loans

$           24,706


$           24,620


$           74,657


$           70,543

Interest on Deposits at Banks

64


182


229


572

Interest and Dividends on Investment Securities:








Fully Taxable

1,557


2,018


5,621


6,671

Exempt from Federal Taxes

969


1,132


3,017


3,606

Total Interest and Dividend Income

27,296


27,952


83,524


81,392

INTEREST EXPENSE








Interest-Bearing Checking Accounts

264


500


1,061


1,435

Savings Deposits

806


2,317


4,450


5,926

Time Deposits over $250,000

292


451


1,263


1,362

Other Time Deposits

576


1,255


2,360


3,099

Federal Funds Purchased and








Securities Sold Under Agreements to Repurchase

17


28


55


75

Federal Home Loan Bank Advances

219


820


865


3,513

Junior Subordinated Obligations Issued to








Unconsolidated Subsidiary Trusts

173


250


574


780

Interest on Financing Leases

49


28


148


71

Total Interest Expense

2,396


5,649


10,776


16,261

NET INTEREST INCOME

24,900


22,303


72,748


65,131

Provision for Loan Losses

2,271


518


8,083


1,445

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

22,629


 

21,785


 

64,665


 

63,686

NONINTEREST INCOME








Income From Fiduciary Activities

2,265


2,212


6,613


6,571

Fees for Other Services to Customers

2,619


2,623


7,348


7,570

Insurance Commissions

1,713


1,936


5,077


5,590

Net (Loss) Gain on Securities

(72)


146


(552)


222

Net Gain on Sales of Loans

1,433


257


2,193


501

Other Operating Income

739


517


2,876


1,020

Total Noninterest Income

8,697


7,691


23,555


21,474

NONINTEREST EXPENSE








Salaries and Employee Benefits

10,408


10,015


31,003


29,061

Occupancy Expenses, Net

1,427


1,324


4,221


4,023

Technology and Equipment Expense

3,228


3,305


9,807


9,689

FDIC Assessments

309


(480)


770


(56)

Other Operating Expense

2,115


2,627


6,685


7,634

Total Noninterest Expense

17,487


16,791


52,486


50,351

INCOME BEFORE PROVISION FOR INCOME TAXES

13,839


12,685


35,734


34,809

Provision for Income Taxes

2,793


2,618


7,402


7,074

NET INCOME

$           11,046


$           10,067


$           28,332


$           27,735

Average Shares Outstanding 1:








Basic

15,472


15,404


15,453


15,375

Diluted

15,481


15,441


15,467


15,417

Per Common Share:








Basic Earnings

$               0.71


$               0.65


$               1.83


$               1.80

Diluted Earnings

0.71


0.65


1.83


1.80

1 2019 Share and Per Share Amounts have been restated for the September 25, 2020, 3% stock dividend.


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


September 30,

December 31,

September 30,

2020

2019

2019

ASSETS




Cash and Due From Banks

$                54,286

$                47,035

$                65,882

Interest-Bearing Deposits at Banks

396,380

23,186

26,416

Investment Securities:




Available-for-Sale at Fair Value

374,928

357,334

314,182

Held-to-Maturity (Approximate Fair Value of $233,501 at




September 30, 2020; $249,618 at December 31, 2019; and




$259,128 at September 30, 2019)

224,799

245,065

255,095

Equity Securities

1,511

2,063

1,996

FHLB and Federal Reserve Bank Stock

5,574

10,317

6,627

Loans

2,592,455

2,386,120

2,335,591

Allowance for Loan Losses

(28,446)

(21,187)

(20,931)

Net Loans

2,564,009

2,364,933

2,314,660

Premises and Equipment, Net

42,075

40,629

40,228

Goodwill

21,873

21,873

21,873

Other Intangible Assets, Net

1,789

1,661

1,713

Other Assets

90,460

70,179

64,150

Total Assets

$          3,777,684

$          3,184,275

$          3,112,822

LIABILITIES




Noninterest-Bearing Deposits

690,232

484,944

516,876

Interest-Bearing Checking Accounts

912,980

689,221

801,446

Savings Deposits

1,354,956

1,046,568

929,691

Time Deposits over $250,000

112,555

123,968

96,770

Other Time Deposits

194,135

271,353

269,764

Total Deposits

3,264,858

2,616,054

2,614,547

Federal Funds Purchased and




Securities Sold Under Agreements to Repurchase

73,949

51,099

72,869

Federal Home Loan Bank Overnight Advances

130,000

48,000

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

5,228

5,254

5,263

Other Liabilities

37,989

30,140

29,915

Total Liabilities

3,452,024

2,882,547

2,820,594

STOCKHOLDERS' EQUITY




Preferred Stock, $1 Par Value and 1,000,000 Shares




Authorized at September 30, 2020, December 31, 2019 and




September 30, 2019

Common Stock, $1 Par Value; 30,000,000 Shares Authorized




(20,194,474 Shares Issued at September 30, 2020 and




19,606,449 at December 31, 2019 and September 30, 2019)

20,194

19,606

19,606

Additional Paid-in Capital

353,062

335,355

334,597

Retained Earnings

33,434

33,218

27,375

Unallocated ESOP Shares (None at September 30, 2020 and




December 31, 2019 and 5,151 Shares at September 30, 2019)

(100)

Accumulated Other Comprehensive Loss

(253)

(6,357)

(8,979)

Treasury Stock, at Cost (4,705,102 Shares at September 30,




2020; 4,608,258 Shares at December 31, 2019 and 4,632,657




Shares at September 30, 2019)

(80,777)

(80,094)

(80,271)

Total Stockholders' Equity

325,660

301,728

292,228

Total Liabilities and Stockholders' Equity

$          3,777,684

$          3,184,275

$          3,112,822


 

Arrow Financial Corporation
Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Quarter Ended

9/30/2020


6/30/2020


3/31/2020


12/31/2019


9/30/2019

Net Income

$      11,046


$        9,159


$        8,127


$        9,740


$      10,067

Transactions in Net Income (Net of Tax):










Net Changes in Fair Value of Equity Investments

(53)


(80)


(279)


50


109

Share and Per Share Data:1










Period End Shares Outstanding

15,489


15,461


15,432


15,448


15,418

Basic Average Shares Outstanding

15,472


15,441


15,446


15,427


15,404

Diluted Average Shares Outstanding

15,481


15,448


15,476


15,476


15,441

Basic Earnings Per Share

$          0.71


$           0.59


$           0.53


$           0.63


$           0.65

Diluted Earnings Per Share

0.71


0.59


0.53


0.63


0.65

Cash Dividend Per Share

0.252


0.252


0.252


0.252


0.245

Selected Quarterly Average Balances:










Interest-Bearing Deposits at Banks

$ 242,928


$ 155,931


$      32,787


$      28,880


$      27,083

Investment Securities

592,457


607,094


603,748


582,982


545,073

Loans

2,582,253


2,518,198


2,394,346


2,358,110


2,308,879

Deposits

3,082,499


2,952,432


2,670,009


2,607,421


2,472,528

Other Borrowed Funds

136,117


129,383


170,987


177,877


231,291

Shareholders' Equity

324,269


316,380


306,527


296,124


289,016

Total Assets

3,583,322


3,437,155


3,180,857


3,113,114


3,023,043

Return on Average Assets, annualized

1.23 %


1.07 %


1.03 %


1.24 %


1.32 %

Return on Average Equity, annualized

13.55 %


11.64 %


10.66 %


13.05 %


13.82 %

Return on Average Tangible Equity, annualized 2

14.61 %


12.58 %


11.55 %


14.18 %


15.05 %

Average Earning Assets

$ 3,417,638


$ 3,281,223


$ 3,030,881


$ 2,969,972


$ 2,881,035

Average Paying Liabilities

2,545,435


2,457,690


2,362,515


2,293,804


2,213,642

Interest Income

27,296


28,002


28,226


28,367


27,952

Tax-Equivalent Adjustment 3

284


281


288


321


344

Interest Income, Tax-Equivalent 3

27,580


28,283


28,514


28,688


28,296

Interest Expense

2,396


3,160


5,220


5,449


5,649

Net Interest Income

24,900


24,842


23,006


22,918


22,303

Net Interest Income, Tax-Equivalent 3

25,184


25,123


23,294


23,239


22,647

Net Interest Margin, annualized

2.90 %


3.05 %


3.05 %


3.06 %


3.07 %

Net Interest Margin, Tax-Equivalent, annualized 3

2.93 %


3.08 %


3.09 %


3.10 %


3.12 %

Efficiency Ratio Calculation: 4










Noninterest Expense

$      17,487


$      17,245


$      17,754


$      17,099


$      16,791

Less: Intangible Asset Amortization

56


57


58


60


61

Net Noninterest Expense

$      17,431


$      17,188


$      17,696


$      17,039


$      16,730

Net Interest Income, Tax-Equivalent

$      25,184


$      25,123


$      23,294


$      23,238


$      22,647

Noninterest Income

8,697


7,164


7,694


7,081


7,691

Less: Net Changes in Fair Value of Equity Invest.

(72)


(106)


(374)


67


146

Net Gross Income

$      33,953


$      32,393


$      31,362


$      30,252


$      30,192

Efficiency Ratio

51.34 %


53.06 %


56.42 %


56.32 %


55.41 %

Period-End Capital Information:

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

 

$ 325,660


 

$ 317,687


 

$ 309,398


 

$ 301,728


 

$ 292,228

Book Value per Share 1

21.03


20.55


20.05


19.53


18.95

Goodwill and Other Intangible Assets, net

23,662


23,535


23,513


23,534


23,586

Tangible Book Value per Share 1,2

19.50


19.03


18.53


18.01


17.42

Capital Ratios:5










Tier 1 Leverage Ratio

9.17 %


9.32 %


9.87 %


9.98 %


10.04 %

Common Equity Tier 1 Capital Ratio

13.20 %


13.07 %


12.84 %


12.94 %


12.93 %

Tier 1 Risk-Based Capital Ratio

14.06 %


13.94 %


13.72 %


13.83 %


13.85 %

Total Risk-Based Capital Ratio

15.28 %


15.10 %


14.76 %


14.78 %


14.81 %

Assets Under Trust Admin. & Investment Mgmt.

$ 1,537,128


$ 1,502,866


$ 1,342,531


$ 1,543,653


$ 1,485,116


 

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 25, 2020, 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.


9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Total Stockholders' Equity (GAAP)

 

$ 325,660

 

$ 317,687

 

$ 309,398

 

$ 301,728

 

$ 292,228

Less: Goodwill and Other Intangible






assets, net

23,662

23,535

23,513

23,534

23,586

Tangible Equity (Non-GAAP)

$  301,998

$  294,152

$  285,885

$  278,194

$  268,642

Period End Shares Outstanding

15,489

15,461

15,432

15,448

15,418

Tangible Book Value per Share (Non-






GAAP)

$       19.50

$        19.03

$        18.53

$        18.01

$       17.42

Net Income

11,046

9,159

8,127

9,740

10,067

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






Annualized)

14.61 %

12.58 %

11.55 %

14.18 %

15.05 %

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.


9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Interest Income (GAAP)

$     27,296

$     28,002

$      28,226

$      28,367

$     27,952

Add: Tax-Equivalent adjustment (Non-GAAP)

 

284

 

281

 

288

 

321

 

344

Interest Income - Tax Equivalent (Non-GAAP)

 

$     27,580

 

$     28,283

 

$      28,514

 

$      28,688

 

$     28,296

Net Interest Income (GAAP)

$     24,900

$     24,842

$      23,006

$      22,918

$     22,303

Add: Tax-Equivalent adjustment (Non-GAAP)

 

284

 

281

 

288

 

321

 

344

Net Interest Income - Tax Equivalent (Non-GAAP)

 

$     25,184

 

$     25,123

 

$      23,294

 

$      23,239

 

$     22,647

Average Earning Assets

$3,417,638

$3,281,223

$3,030,881

$2,969,972

$2,881,035

Net Interest Margin (Non-GAAP)*

2.93 %

3.08 %

3.09 %

3.10 %

3.12 %

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 September 30, 2020 listed in the tables (i.e., 13.20%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%).


9/30/2020


6/30/2020

3/31/2020

12/31/2019

9/30/2019

Total Risk Weighted Assets

$2,321,637


$2,283,430

$2,275,902

$2,237,127

$2,184,214

Common Equity Tier 1 Capital

306,356


298,362

292,165

289,409

282,485

Common Equity Tier 1 Ratio

13.20 %


13.07 %

12.84 %

12.94 %

12.93 %

* Quarterly ratios have been annualized

 


 

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

Quarter Ended:

Loan Portfolio

9/30/2020

12/31/2019

9/30/2019

Commercial Loans

$       275,921

$       150,660

$       142,135

Commercial Real Estate Loans

541,233

510,541

498,083

Subtotal Commercial Loan Portfolio

817,154

661,201

640,218

Consumer Loans

849,526

811,198

805,798

Residential Real Estate Loans

925,775

913,721

889,575

Total Loans

$  2,592,455

$  2,386,120

$  2,335,591

Allowance for Loan Losses




Allowance for Loan Losses, Beginning of Quarter

$         26,300

$         20,931

$         20,695

Loans Charged-off

(392)

(503)

(402)

Less Recoveries of Loans Previously Charged-off

267

125

120

Net Loans Charged-off

(125)

(378)

(282)

Provision for Loan Losses

2,271

634

518

Allowance for Loan Losses, End of Quarter

$         28,446

$         21,187

$         20,931

Nonperforming Assets




Nonaccrual Loans

$           6,004

$           4,005

$           3,465

Loans Past Due 90 or More Days and Accruing

121

253

1,066

Loans Restructured and in Compliance with Modified Terms

157

143

150

Total Nonperforming Loans

6,282

4,401

4,681

Repossessed Assets

126

139

76

Other Real Estate Owned

1,122

1,198

Total Nonperforming Assets

$           6,408

$           5,662

$           5,955

Key Asset Quality Ratios




Net Loans Charged-off to Average Loans,




Quarter-to-date Annualized

0.02 %

0.06 %

0.05 %

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

 

0.35 %

 

0.11 %

 

0.09 %

Allowance for Loan Losses to Period-End Loans

1.10 %

0.89 %

0.90 %

Allowance for Loan Losses to Period-End Nonperforming Loans

452.82 %

481.41 %

447.15 %

Nonperforming Loans to Period-End Loans

0.24 %

0.18 %

0.20 %

Nonperforming Assets to Period-End Assets

0.17 %

0.18 %

0.19 %

Nine Month Period Ended:




Allowance for Loan Losses




Allowance for Loan Losses, Beginning of Year

$         21,187


$         20,196

Loans Charged-off

(1,360)


(1,232)

Less Recoveries of Loans Previously Charged-off

536


522

Net Loans Charged-off

(824)


(710)

Provision for Loan Losses

8,083


1,445

Allowance for Loan Losses, End of Period

$         28,446


$         20,931

Key Asset Quality Ratios




Net Loans Charged-off to Average Loans, Annualized

0.04 %


0.04 %

Provision for Loan Losses to Average Loans, Annualized

0.43 %


0.09 %

 

Cision View original content:http://www.prnewswire.com/news-releases/arrow-reports-11-0-million-in-q3-net-income-as-covid-19-response-continues-301156917.html

SOURCE Arrow Financial Corporation

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