GLENS FALLS, N.Y.,
April 23, 2019 /PRNewswire/ -- Arrow Financial
Corporation (NasdaqGS® – AROW) announced operating results for the
three-month period ended March 31, 2019. Net income for the
first quarter of 2019 was $8.7
million compared to $8.5
million in the first quarter of 2018. Steady loan growth
continued in 2019, as net loans grew by $38.8 million to $2.21
billion. Driven primarily by this growth, net interest
income increased to $21.1 million in
the first quarter of 2019, compared to $20.4
million for the comparable quarter of 2018. Noninterest
income, which includes revenues generated from insurance
commissions and wealth management, contributed $6.9 million to total first quarter revenue of
$28.0 million, a 2.6% increase over
$27.3 million for the first quarter
of 2018.
Annualized key profitability ratios remained strong, as measured
by a return on average equity (ROE) of 12.98% and a return on
average assets (ROA) of 1.19% for the first quarter, compared to
13.78% and 1.25%, respectively, a year earlier.
"Arrow continued its strong performance through the first
quarter of the year," said President and CEO Thomas J. Murphy. "Steady loan growth was again
a highlight, while our profitability, asset and capital ratios all
reflect our solid foundation. Our team is committed to advancing
community banking in the markets we serve, and I am very proud of
their achievements."
Cash Dividend: On March 15,
2019, the Company distributed a cash dividend of
$0.26 per share. The March 15, 2019 cash dividend was 7.1% higher than
the $0.25 cash dividend paid by the
Company in the first quarter of 2018, when adjusted for the 3%
stock dividend distributed on September 27,
2018.
The following expands on our first-quarter results:
Loan Growth: Over the twelve months ended
March 31, 2019, total loans increased $242.2 million, or 12.2%, to $2.2 billion. The consumer loan portfolio grew by
$120.2 million, or 19.2%, over the
balance at March 31, 2018, primarily within the indirect
automobile lending program. The total residential real estate loan
portfolio increased $78.1 million, or
10.0%, over the balance at March 31, 2018. Total outstanding
commercial loans increased $43.9
million, or 7.5% over the balance at March 31,
2018.
Deposit Growth: At March 31, 2019, deposit
balances reached $2.5 billion, up
$78.8 million, or 3.3%, from the
prior-year level with growth in both personal and business
balances. Noninterest-bearing deposits represented 18.2% of total
deposits at March 31, 2019, compared to 18.8% at
March 31, 2018. At March 31,
2019, other time deposits were $263.0
million, an increase of $95.9
million compared to the prior year.
Net Interest Income: Driven by strong loan
growth, first quarter 2019 net interest income increased to
$21.1 million, up 3.5% from
$20.4 million in the comparable
quarter of 2018. The net interest margin was 3.01% for the
quarter, compared to 3.13% for the first quarter of 2018. The
decrease in net interest margin was primarily due to increased
rates on money market savings, time deposits and other borrowings
as a result of higher short-term interest rates.
Noninterest Income: Noninterest income for the
three-month period ended March 31, 2019, was $6.9 million, compared to $6.9 million in the comparable 2018 quarter.
Revenue generated from the wealth management and insurance
segments, remained consistent, and total noninterest income
represented 24.6% of total revenues in the first quarter of 2019
compared to 25.2% for the same period of 2018.
Noninterest Expense: Noninterest expense for the
first quarter of 2019 increased 4.4% to $16.7 million, from $16.0
million for the first quarter of 2018. Technology and
equipment expense increased $443
thousand, and other operating expense increased $228 thousand from the comparable quarter in
2018.
Provision for Income Taxes: The provision for income
taxes was $2.2 million in the first
quarter of 2019 versus $2.1 million
in the same quarter of 2018. The effective income tax rates for the
three-month periods ended March 31, 2019 and 2018 were 19.8%
and 19.4%, respectively.
Asset Quality: Asset quality remained strong at
March 31, 2019, helped by continuing low levels of
nonperforming loans and net charge-offs. Nonperforming loans at
March 31, 2019, were $5.3
million, down $174.0 thousand from the level at
December 31, 2018. Net charge-offs, expressed as an annualized
percentage of average loans outstanding, were 0.05% for the
three-month period ended March 31, 2019, down from the
prior-year comparable quarter of 0.06%. The allowance for loan
losses was $20.4 million at
March 31, 2019, which represented 0.91% of loans outstanding,
as compared to 0.96% at March 31, 2018. The loss provision
expense for the first quarter of 2019 was $472 thousand, down $274
thousand from the provision for the comparable 2018
quarter.
Capital: Total stockholders' equity was a
record $276.6 million at
March 31, 2019, up $23.9
million, or 9.4%, from the comparable quarter of 2018.
Overall regulatory capital ratios also remained strong in 2019,
with the Company's common equity tier 1 ratio estimated to be
12.98% and the total risk-based capital ratio estimated to be
14.93% at March 31, 2019. These capital levels at the Company
and both its subsidiary banks continue to significantly exceed the
"well capitalized" regulatory standard.
Industry Recognition: Both of the Company's banking
subsidiaries maintained their BauerFinancial, Inc. 5-Star Superior
Bank rating. Glens Falls National Bank and Trust Company and
Saratoga National Bank and Trust Company have continued to earn
this designation for the last 48 and 40 quarters, respectively.
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 North Country Investment Advisers, Inc. and
Upstate Agency, LLC.
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. 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, 2018, 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
March 31,
|
|
|
2019
|
|
2018
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
Interest and Fees on
Loans
|
|
$
|
22,403
|
|
|
$
|
18,858
|
|
Interest on Deposits
at Banks
|
|
195
|
|
|
134
|
|
Interest and
Dividends on Investment Securities:
|
|
|
|
|
Fully
Taxable
|
|
2,369
|
|
|
1,893
|
|
Exempt from Federal
Taxes
|
|
1,246
|
|
|
1,533
|
|
Total Interest and
Dividend Income
|
|
26,213
|
|
|
22,418
|
|
INTEREST
EXPENSE
|
|
|
|
|
Interest-Bearing
Checking Accounts
|
|
482
|
|
|
387
|
|
Savings
Deposits
|
|
1,601
|
|
|
522
|
|
Time Deposits over
$250,000
|
|
396
|
|
|
204
|
|
Other Time
Deposits
|
|
713
|
|
|
259
|
|
Federal Funds
Purchased and
Securities Sold Under Agreements to
Repurchase
|
|
22
|
|
|
16
|
|
Federal Home Loan
Bank Advances
|
|
1,594
|
|
|
414
|
|
Junior Subordinated
Obligations Issued to
Unconsolidated Subsidiary
Trusts
|
|
269
|
|
|
214
|
|
Interest on Financing
Leases
|
|
15
|
|
|
—
|
|
Total Interest
Expense
|
|
5,092
|
|
|
2,016
|
|
NET INTEREST
INCOME
|
|
21,121
|
|
|
20,402
|
|
Provision for Loan
Losses
|
|
472
|
|
|
746
|
|
NET INTEREST
INCOME AFTER PROVISION FOR
LOAN LOSSES
|
|
20,649
|
|
|
19,656
|
|
NONINTEREST
INCOME
|
|
|
|
|
Income From Fiduciary
Activities
|
|
2,107
|
|
|
2,197
|
|
Fees for Other
Services to Customers
|
|
2,402
|
|
|
2,380
|
|
Insurance
Commissions
|
|
1,719
|
|
|
1,903
|
|
Net Gain on
Securities Transactions
|
|
76
|
|
|
18
|
|
Net Gain on Sales of
Loans
|
|
104
|
|
|
38
|
|
Other Operating
Income
|
|
479
|
|
|
353
|
|
Total
Noninterest Income
|
|
6,887
|
|
|
6,889
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
Salaries and Employee
Benefits
|
|
9,319
|
|
|
9,369
|
|
Occupancy Expenses,
Net
|
|
1,420
|
|
|
1,340
|
|
Technology and
Equipment Expense
|
|
3,141
|
|
|
2,698
|
|
FDIC
Assessments
|
|
212
|
|
|
217
|
|
Other Operating
Expense
|
|
2,560
|
|
|
2,332
|
|
Total
Noninterest Expense
|
|
16,652
|
|
|
15,956
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
|
10,884
|
|
|
10,589
|
|
Provision for Income
Taxes
|
|
2,150
|
|
|
2,058
|
|
NET
INCOME
|
|
$
|
8,734
|
|
|
$
|
8,531
|
|
Average Shares
Outstanding 1:
|
|
|
|
|
Basic
|
|
14,469
|
|
|
14,354
|
|
Diluted
|
|
14,520
|
|
|
14,436
|
|
Per Common
Share:
|
|
|
|
|
Basic
Earnings
|
|
$
|
0.60
|
|
|
$
|
0.59
|
|
Diluted
Earnings
|
|
0.60
|
|
|
0.59
|
|
1 2018 Share and Per Share Amounts
have been restated for the September 27, 2018, 3% stock
dividend.
|
|
|
|
ARROW FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In Thousands, Except
Share and Per Share Amounts - Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
ASSETS
|
|
|
|
|
|
Cash and Due From
Banks
|
$
|
36,198
|
|
|
$
|
56,529
|
|
|
$
|
29,525
|
|
Interest-Bearing
Deposits at Banks
|
25,031
|
|
|
27,710
|
|
|
70,747
|
|
Investment
Securities:
|
|
|
|
|
|
Available-for-Sale
|
298,812
|
|
|
317,535
|
|
|
305,589
|
|
Held-to-Maturity
(Approximate Fair Value of $280,414 at March 31, 2019; $280,338 at
December 31, 2018; and $324,937 at March 31, 2018)
|
279,400
|
|
|
283,476
|
|
|
330,124
|
|
Equity
Securities
|
1,850
|
|
|
1,774
|
|
|
1,579
|
|
Other
Investments
|
7,878
|
|
|
15,506
|
|
|
4,780
|
|
Loans
|
2,235,208
|
|
|
2,196,215
|
|
|
1,993,037
|
|
Allowance for Loan
Losses
|
(20,373)
|
|
|
(20,196)
|
|
|
(19,057)
|
|
Net Loans
|
2,214,835
|
|
|
2,176,019
|
|
|
1,973,980
|
|
Premises and
Equipment, Net
|
34,949
|
|
|
30,446
|
|
|
27,815
|
|
Goodwill
|
21,873
|
|
|
21,873
|
|
|
21,873
|
|
Other Intangible
Assets, Net
|
1,777
|
|
|
1,852
|
|
|
2,172
|
|
Other
Assets
|
62,280
|
|
|
55,614
|
|
|
58,503
|
|
Total
Assets
|
$
|
2,984,883
|
|
|
$
|
2,988,334
|
|
|
$
|
2,826,687
|
|
LIABILITIES
|
|
|
|
|
|
Noninterest-Bearing
Deposits
|
$
|
453,089
|
|
|
$
|
472,768
|
|
|
$
|
452,347
|
|
Interest-Bearing
Checking Accounts
|
823,301
|
|
|
790,781
|
|
|
944,161
|
|
Savings
Deposits
|
866,861
|
|
|
818,048
|
|
|
762,220
|
|
Time Deposits over
$250,000
|
83,834
|
|
|
73,583
|
|
|
85,403
|
|
Other Time
Deposits
|
263,012
|
|
|
190,404
|
|
|
167,142
|
|
Total
Deposits
|
2,490,097
|
|
|
2,345,584
|
|
|
2,411,273
|
|
Federal Funds
Purchased and
Securities Sold Under Agreements to
Repurchase
|
58,407
|
|
|
54,659
|
|
|
74,957
|
|
Federal Home Loan
Bank Overnight Advances
|
74,500
|
|
|
234,000
|
|
|
—
|
|
Federal Home Loan
Bank Term Advances
|
35,000
|
|
|
45,000
|
|
|
45,000
|
|
Junior Subordinated
Obligations Issued to Unconsolidated
Subsidiary Trusts
|
20,000
|
|
|
20,000
|
|
|
20,000
|
|
Finance
Leases
|
2,946
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
Liabilities
|
27,324
|
|
|
19,507
|
|
|
22,723
|
|
Total
Liabilities
|
2,708,274
|
|
|
2,718,750
|
|
|
2,573,953
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred Stock, $5
Par Value; 1,000,000 Shares Authorized
|
—
|
|
|
—
|
|
|
—
|
|
Common Stock, $1 Par
Value; 20,000,000 Shares Authorized (19,035,565 Shares Issued at
March 31, 2019; 19,035,565 at December 31, 2018 and 18,481,301 at
March 31, 2018)
|
19,035
|
|
|
19,035
|
|
|
18,481
|
|
Additional Paid-in
Capital
|
315,262
|
|
|
314,533
|
|
|
290,980
|
|
Retained
Earnings
|
34,231
|
|
|
29,257
|
|
|
34,093
|
|
Unallocated ESOP
Shares (5,001 Shares at March 31, 2019; 5,001 Shares at December
31, 2018 and 9,643 Shares at March 31, 2018)
|
(100)
|
|
|
(100)
|
|
|
(200)
|
|
Accumulated Other
Comprehensive Loss
|
(11,567)
|
|
|
(13,810)
|
|
|
(11,285)
|
|
Treasury Stock, at
Cost (4,556,083 Shares at March 31, 2019; 4,558,207 Shares at
December 31, 2018 and 4,516,444 Shares at March 31,
2018)
|
(80,252)
|
|
|
(79,331)
|
|
|
(79,335)
|
|
Total
Stockholders' Equity
|
276,609
|
|
|
269,584
|
|
|
252,734
|
|
Total
Liabilities and Stockholders' Equity
|
$
|
2,984,883
|
|
|
$
|
2,988,334
|
|
|
$
|
2,826,687
|
|
Arrow Financial
Corporation
Selected Quarterly
Information
(Dollars In
Thousands, Except Per Share Amounts -
Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
3/31/2019
|
|
|
12/31/2018
|
|
|
9/30/2018
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
Net Income
|
$
|
8,734
|
|
|
$
|
8,758
|
|
|
$
|
9,260
|
|
|
$
|
9,730
|
|
|
$
|
8,531
|
|
Transactions
Recorded in Net Income (Net of Tax):
|
|
|
|
|
|
|
|
|
|
Net Changes in Fair
Value of Equity Investments
|
57
|
|
|
(106)
|
|
|
85
|
|
|
166
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share Data:1
|
|
|
|
|
|
|
|
|
|
Period End Shares
Outstanding
|
14,474
|
|
|
14,472
|
|
|
14,441
|
|
|
14,424
|
|
|
14,368
|
|
Basic Average Shares
Outstanding
|
14,469
|
|
|
14,451
|
|
|
14,431
|
|
|
14,394
|
|
|
14,354
|
|
Diluted Average
Shares Outstanding
|
14,520
|
|
|
14,514
|
|
|
14,520
|
|
|
14,480
|
|
|
14,436
|
|
Basic Earnings Per
Share
|
$
|
0.60
|
|
|
$
|
0.61
|
|
|
$
|
0.64
|
|
|
$
|
0.68
|
|
|
$
|
0.59
|
|
Diluted Earnings Per
Share
|
0.60
|
|
|
0.60
|
|
|
0.64
|
|
|
0.67
|
|
|
0.59
|
|
Cash Dividend Per
Share
|
0.260
|
|
|
0.260
|
|
|
0.252
|
|
|
0.243
|
|
|
0.243
|
|
|
|
|
|
|
|
|
|
|
|
Selected Quarterly
Average Balances:
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits at
Banks
|
$
|
26,163
|
|
|
$
|
34,782
|
|
|
$
|
30,522
|
|
|
$
|
28,543
|
|
|
$
|
27,978
|
|
Investment Securities
|
611,161
|
|
|
637,341
|
|
|
636,847
|
|
|
647,913
|
|
|
642,442
|
|
Loans
|
2,210,642
|
|
|
2,160,435
|
|
|
2,089,651
|
|
|
2,026,598
|
|
|
1,971,240
|
|
Deposits
|
2,347,985
|
|
|
2,347,231
|
|
|
2,279,709
|
|
|
2,325,202
|
|
|
2,305,736
|
|
Other
Borrowed Funds
|
327,138
|
|
|
315,172
|
|
|
314,304
|
|
|
219,737
|
|
|
184,613
|
|
Shareholders' Equity
|
272,864
|
|
|
268,503
|
|
|
263,139
|
|
|
256,358
|
|
|
251,109
|
|
Total
Assets
|
2,977,056
|
|
|
2,954,031
|
|
|
2,879,854
|
|
|
2,823,061
|
|
|
2,763,706
|
|
Return on Average
Assets, annualized
|
1.19
|
%
|
|
1.18
|
%
|
|
1.28
|
%
|
|
1.38
|
%
|
|
1.25
|
%
|
Return on Average
Equity, annualized
|
12.98
|
%
|
|
12.94
|
%
|
|
13.96
|
%
|
|
15.22
|
%
|
|
13.78
|
%
|
Return on Average
Tangible Equity, annualized 2
|
14.22
|
%
|
|
14.20
|
%
|
|
15.36
|
%
|
|
16.80
|
%
|
|
15.24
|
%
|
Average Earning
Assets
|
$
|
2,847,966
|
|
|
$
|
2,832,558
|
|
|
$
|
2,757,020
|
|
|
$
|
2,703,054
|
|
|
$
|
2,641,660
|
|
Average Paying
Liabilities
|
2,224,403
|
|
|
2,189,233
|
|
|
2,110,924
|
|
|
2,100,085
|
|
|
2,050,661
|
|
Interest
Income
|
26,213
|
|
|
26,000
|
|
|
24,495
|
|
|
23,590
|
|
|
22,418
|
|
Tax-Equivalent
Adjustment 3
|
373
|
|
|
376
|
|
|
376
|
|
|
468
|
|
|
491
|
|
Interest Income,
Tax-Equivalent 3
|
26,586
|
|
|
26,376
|
|
|
24,871
|
|
|
24,058
|
|
|
22,909
|
|
Interest
Expense
|
5,092
|
|
|
4,343
|
|
|
3,498
|
|
|
2,628
|
|
|
2,016
|
|
Net Interest
Income
|
21,121
|
|
|
21,657
|
|
|
20,997
|
|
|
20,962
|
|
|
20,402
|
|
Net Interest Income,
Tax-Equivalent 3
|
21,494
|
|
|
22,033
|
|
|
21,373
|
|
|
21,430
|
|
|
20,893
|
|
Net Interest Margin,
annualized
|
3.01
|
%
|
|
3.03
|
%
|
|
3.02
|
%
|
|
3.11
|
%
|
|
3.13
|
%
|
Net Interest Margin,
Tax-Equivalent, annualized 3
|
3.06
|
%
|
|
3.09
|
%
|
|
3.08
|
%
|
|
3.18
|
%
|
|
3.21
|
%
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
Calculation: 4
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
$
|
16,652
|
|
|
$
|
16,881
|
|
|
$
|
16,026
|
|
|
$
|
16,192
|
|
|
$
|
15,956
|
|
Less: Intangible
Asset Amortization
|
79
|
|
|
65
|
|
|
65
|
|
|
66
|
|
|
67
|
|
Net Noninterest
Expense
|
$
|
16,573
|
|
|
$
|
16,816
|
|
|
$
|
15,961
|
|
|
$
|
16,126
|
|
|
$
|
15,889
|
|
Net Interest Income,
Tax-Equivalent
|
$
|
21,494
|
|
|
$
|
22,033
|
|
|
$
|
21,373
|
|
|
$
|
21,430
|
|
|
$
|
20,893
|
|
Noninterest
Income
|
6,887
|
|
|
6,799
|
|
|
7,350
|
|
|
7,911
|
|
|
6,888
|
|
Less: Net Changes in
Fair Value of Equity Invest.
|
76
|
|
|
(142)
|
|
|
114
|
|
|
223
|
|
|
18
|
|
Net Gross
Income
|
$
|
28,305
|
|
|
$
|
28,974
|
|
|
$
|
28,611
|
|
|
$
|
29,118
|
|
|
$
|
27,763
|
|
Efficiency
Ratio
|
58.55
|
%
|
|
58.04
|
%
|
|
55.79
|
%
|
|
55.38
|
%
|
|
57.23
|
%
|
|
|
|
|
|
|
|
|
|
|
Period-End Capital
Information:
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity (i.e. Book Value)
|
$
|
276,609
|
|
|
$
|
269,584
|
|
|
$
|
264,810
|
|
|
$
|
259,488
|
|
|
$
|
252,734
|
|
Book Value per
Share 1
|
19.11
|
|
|
18.63
|
|
|
18.34
|
|
|
17.99
|
|
|
17.59
|
|
Goodwill and Other
Intangible Assets, net
|
23,650
|
|
|
23,725
|
|
|
23,827
|
|
|
23,933
|
|
|
24,045
|
|
Tangible Book Value
per Share 1,2
|
17.48
|
|
|
16.99
|
|
|
16.69
|
|
|
16.33
|
|
|
15.92
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:5
|
|
|
|
|
|
Tier 1 Leverage
Ratio
|
9.73
|
%
|
|
9.61
|
%
|
|
9.67
|
%
|
|
9.65
|
%
|
|
9.62
|
%
|
Common Equity Tier 1
Capital Ratio
|
12.98
|
%
|
|
12.89
|
%
|
|
12.89
|
%
|
|
13.01
|
%
|
|
12.97
|
%
|
Tier 1 Risk-Based
Capital Ratio
|
13.95
|
%
|
|
13.87
|
%
|
|
13.90
|
%
|
|
14.04
|
%
|
|
14.03
|
%
|
Total Risk-Based
Capital Ratio
|
14.93
|
%
|
|
14.86
|
%
|
|
14.90
|
%
|
|
15.06
|
%
|
|
15.04
|
%
|
|
|
|
|
|
|
|
|
|
|
Assets Under Trust
Admin. & Investment Mgmt.
|
$
|
1,483,259
|
|
|
$
|
1,385,752
|
|
|
$
|
1,551,289
|
|
|
$
|
1,479,753
|
|
|
$
|
1,470,191
|
|
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, 2018, 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 we
believe provide investors with information that is useful in
understanding our financial performance.
|
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|
3/31/2018
|
|
Total Stockholders'
Equity (GAAP)
|
$
|
276,609
|
|
|
$
|
269,584
|
|
|
$
|
264,810
|
|
|
$
|
259,488
|
|
|
$
|
252,734
|
|
|
Less: Goodwill and
Other Intangible assets, net
|
23,650
|
|
|
23,725
|
|
|
23,827
|
|
|
23,933
|
|
|
24,045
|
|
|
Tangible Equity
(Non-GAAP)
|
$
|
252,959
|
|
|
$
|
245,859
|
|
|
$
|
240,983
|
|
|
$
|
235,555
|
|
|
$
|
228,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Shares
Outstanding
|
14,474
|
|
|
14,472
|
|
|
14,441
|
|
|
14,424
|
|
|
14,368
|
|
|
Tangible Book Value
per Share (Non-GAAP)
|
$
|
17.48
|
|
|
$
|
16.99
|
|
|
$
|
16.69
|
|
|
$
|
16.33
|
|
|
$
|
15.92
|
|
|
Net Income
|
8,734
|
|
|
8,758
|
|
|
9,260
|
|
|
9,730
|
|
|
8,531
|
|
|
Return on Tangible
Equity (Net Income/Tangible Equity - Annualized)
|
14.22
|
%
|
|
14.20
|
%
|
|
15.36
|
%
|
|
16.80
|
%
|
|
15.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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 we believe provides investors with information that is useful
in understanding our financial performance.
|
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|
3/31/2018
|
|
Interest Income
(GAAP)
|
$
|
26,213
|
|
|
$
|
26,000
|
|
|
$
|
24,495
|
|
|
$
|
23,590
|
|
|
$
|
22,418
|
|
|
Add: Tax-Equivalent
adjustment
(Non-GAAP)
|
373
|
|
|
376
|
|
|
376
|
|
|
468
|
|
|
491
|
|
|
Interest Income - Tax
Equivalent
(Non-GAAP)
|
$
|
26,586
|
|
|
$
|
26,376
|
|
|
$
|
24,871
|
|
|
$
|
24,058
|
|
|
$
|
22,909
|
|
|
Net Interest Income
(GAAP)
|
$
|
21,121
|
|
|
$
|
21,657
|
|
|
$
|
20,997
|
|
|
$
|
20,962
|
|
|
$
|
20,402
|
|
|
Add: Tax-Equivalent
adjustment
(Non-GAAP)
|
373
|
|
|
376
|
|
|
376
|
|
|
468
|
|
|
491
|
|
|
Net Interest Income -
Tax Equivalent
(Non-GAAP)
|
$
|
21,494
|
|
|
$
|
22,033
|
|
|
$
|
21,373
|
|
|
$
|
21,430
|
|
|
$
|
20,893
|
|
|
Average Earning
Assets
|
$
|
2,847,966
|
|
|
$
|
2,832,558
|
|
|
$
|
2,757,020
|
|
|
$
|
2,703,054
|
|
|
$
|
2,641,660
|
|
|
Net Interest Margin
(Non-GAAP)*
|
3.06
|
%
|
|
3.09
|
%
|
|
3.08
|
%
|
|
3.18
|
%
|
|
3.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
4.
|
Non-GAAP Financial
Measures: Financial Institutions often use the "efficiency ratio",
a non-GAAP ratio, as a measure of expense control. We believe the
efficiency ratio provides investors with information that is useful
in understanding our financial performance. We define our
efficiency ratio as the ratio of our noninterest expense to our net
gross income (which equals our 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 March
31, 2019 listed in the tables (i.e., 12.98%) exceeds the sum of the
required minimum CET1 ratio plus the fully phased-in Capital
Conservation Buffer (i.e., 7.00%).
|
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|
3/31/2018
|
|
Total Risk Weighted
Assets
|
$
|
2,075,115
|
|
|
$
|
2,046,495
|
|
|
$
|
1,999,849
|
|
|
$
|
1,934,890
|
|
|
$
|
1,889,719
|
|
|
Common Equity Tier 1
Capital
|
269,363
|
|
|
263,863
|
|
|
257,852
|
|
|
251,666
|
|
|
245,015
|
|
|
Common Equity Tier 1
Ratio
|
12.98
|
%
|
|
12.89
|
%
|
|
12.89
|
%
|
|
13.01
|
%
|
|
12.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Quarterly ratios
have been annualized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arrow Financial
Corporation
Consolidated
Financial Information
(Dollars in Thousands
- Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended:
|
3/31/2019
|
|
12/31/2018
|
|
3/31/2018
|
Loan
Portfolio
|
|
|
|
|
|
Commercial
Loans
|
$
|
133,276
|
|
|
$
|
136,890
|
|
|
$
|
127,674
|
|
Commercial Real
Estate Loans
|
493,387
|
|
|
484,562
|
|
|
455,059
|
|
Subtotal
Commercial Loan Portfolio
|
626,663
|
|
|
621,452
|
|
|
582,733
|
|
Consumer
Loans
|
746,799
|
|
|
719,510
|
|
|
626,639
|
|
Residential Real
Estate Loans
|
861,746
|
|
|
855,253
|
|
|
783,665
|
|
Total
Loans
|
$
|
2,235,208
|
|
|
$
|
2,196,215
|
|
|
$
|
1,993,037
|
|
Allowance for Loan
Losses
|
|
|
|
|
|
Allowance for Loan
Losses, Beginning of Quarter
|
$
|
20,196
|
|
|
$
|
20,003
|
|
|
$
|
18,586
|
|
Loans
Charged-off
|
(462)
|
|
|
(573)
|
|
|
(370)
|
|
Less Recoveries of
Loans Previously Charged-off
|
167
|
|
|
120
|
|
|
95
|
|
Net Loans
Charged-off
|
(295)
|
|
|
(453)
|
|
|
(275)
|
|
Provision for Loan
Losses
|
472
|
|
|
646
|
|
|
746
|
|
Allowance for Loan
Losses, End of Quarter
|
$
|
20,373
|
|
|
$
|
20,196
|
|
|
$
|
19,057
|
|
Nonperforming
Assets
|
|
|
|
|
|
Nonaccrual
Loans
|
$
|
5,143
|
|
|
$
|
4,159
|
|
|
$
|
4,470
|
|
Loans Past Due 90 or
More Days and Accruing
|
64
|
|
|
1,225
|
|
|
—
|
|
Loans Restructured
and in Compliance with Modified Terms
|
141
|
|
|
138
|
|
|
100
|
|
Total Nonperforming
Loans
|
5,348
|
|
|
5,522
|
|
|
4,570
|
|
Repossessed
Assets
|
123
|
|
|
130
|
|
|
120
|
|
Other Real Estate
Owned
|
1,322
|
|
|
1,130
|
|
|
1,525
|
|
Total Nonperforming
Assets
|
$
|
6,793
|
|
|
$
|
6,782
|
|
|
$
|
6,215
|
|
Key Asset Quality
Ratios
|
|
|
|
|
|
Net Loans Charged-off
to Average Loans,
Quarter-to-date Annualized
|
0.05
|
%
|
|
0.08
|
%
|
|
0.06
|
%
|
Provision for Loan
Losses to Average Loans,
Quarter-to-date Annualized
|
0.09
|
%
|
|
0.12
|
%
|
|
0.15
|
%
|
Allowance for Loan
Losses to Period-End Loans
|
0.91
|
%
|
|
0.92
|
%
|
|
0.96
|
%
|
Allowance for Loan
Losses to Period-End Nonperforming Loans
|
380.95
|
%
|
|
365.74
|
%
|
|
417.00
|
%
|
Nonperforming Loans
to Period-End Loans
|
0.24
|
%
|
|
0.25
|
%
|
|
0.23
|
%
|
Nonperforming Assets
to Period-End Assets
|
0.23
|
%
|
|
0.23
|
%
|
|
0.22
|
%
|
View original
content:http://www.prnewswire.com/news-releases/arrow-reports-12-2-year-over-year-loan-growth-and-8-7-million-in-net-income-300836354.html
SOURCE Arrow Financial Corporation