AROW earnings analysis
What we found in AROW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Arrow Financial Corporation reported significant improvements in Q1 2026, with net income of $13.5 million and diluted EPS of $0.82, up from $6.3 million and $0.38, respectively, in Q1 2025. Revenues increased by 6.8% to $53.8 million driven by higher loan yields, while expenses rose modestly by 3.1%. The company anticipates benefits post-acquisition of Adirondack Bancorp, enhancing its earnings potential going forward.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong EPS Growth
- Diluted EPS increased 115.8% to $0.82 from $0.38 in the prior year.
- Revenue Surplus
- Revenue rose to $53.8 million, exceeding estimates of $43.8 million, driven by higher loan yields.
- Improved Net Interest Income
- Net interest income increased by 15.2% to $36.1 million from $31.4 million a year ago.
- Decline in Nonperforming Loans
- Nonperforming loans decreased to $4.4 million, down from $19 million a year earlier.
- Acquisition Synergy Anticipation
- Management indicates potential earnings enhancement following the merger with Adirondack Bancorp, expected to close in Q3 2026.
- Increased Liquidity
- Interest-earning deposits rose to $256.5 million from $185.1 million at year-end 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Merger-Related Expenses
- Approximately $800,000 incurred in merger-related expenses which could impact future earnings.
- Loan Growth Challenges
- Severe winter weather adversely affected loan originations, particularly in the consumer segment, which declined by $4.5 million.
- Potential Regulatory Risks
- Arrow operates in a highly regulated environment, and failing to comply could lead to penalties.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.85
- Segment
- Community Banking
What they said about what is next.
Management mentions improved earnings due to merger with Adirondack, but provides no specific numerical guidance.
The filing reads better than the one before it.
What came before.
- 10-K · March 6, 2026
- Arrow Financial shows multi-quarter revenue and margin improvement through 2025 (total 2025 revenue of $242.0M with EPS ~ $2.65), and is pursuing a strategic acquisition of Adirondack Bancorp (implied value ~$89.1M) to…
- 10-Q · May 10, 2024
- Arrow reported net income of $7,660,000 and diluted EPS of $0.45 for the quarter ended March 31, 2024, down from $8,562,000 and $0.50 a year ago. Revenue (net interest income after interest expense plus non‑interest…
- 10-Q · August 8, 2023
- Arrow Financial reported a sharp year-over-year decline in quarterly profitability: net income fell to $6,047,000 and diluted EPS to $0.36 for the three months ended June 30, 2023, versus $11,974,000 and $0.72 in the…
- 10-K · July 18, 2023
- Arrow Financial is a two-bank holding company (Glens Falls National and Saratoga National) focused on commercial and consumer lending in northeastern New York, trust services and an insurance agency. The 10-K discloses…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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