Arrow Financial Corporation has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the year ended December 31, 2024. The company, established in 1851 and headquartered in Glens Falls, New York, operates as a bank holding company, offering a range of commercial and consumer banking services, financial products, and investment advisory services in the northeastern region of New York State.
In the year ended December 31, 2024, Arrow Financial reported a net income of $29.7 million, slightly down from $30.1 million in 2023. The diluted earnings per share remained unchanged at $1.77. The return on average assets (ROA) was 0.70%, down from 0.74% in 2023, while the return on average equity (ROE) was 7.72%, a decrease from 8.29% in the previous year.
The company's net interest income for the year increased by 6.6% to $111.7 million, primarily driven by interest income outpacing growth in interest expense. Interest and fees on loans grew by 20.6% to $171.3 million, attributed to loan growth and higher loan rates. However, interest expense for the year rose by 44.2% to $83.3 million due to higher deposit rates and changes in deposit composition.
Arrow Financial's provision for credit losses for 2024 was $5.2 million, up from $3.4 million in the prior year, driven by loan growth, charge-offs, and changes to the portfolio mix/age. Non-interest expense increased by 4.5% to $97.3 million, with the largest component being salaries and benefits, which rose by 10.6% to $52.7 million.
Total assets stood at $4.3 billion at December 31, 2024, representing a 3.3% increase from the previous year, mainly driven by loan growth. Total loan balances reached $3.4 billion, with a 5.8% growth over the year. The allowance for credit losses also increased to $33.6 million, representing 0.99% of loans outstanding at year-end.
Arrow Financial's total deposit balances grew to $3.8 billion, marking a 3.8% increase from the prior year. However, non-interest bearing deposits decreased by 7.3%, while total time deposits, excluding brokered CDs, increased by $36.0 million. The company's total shareholders' equity reached $400.9 million, reflecting a 5.6% increase from 2023.
Arrow Financial Corporation maintained strong regulatory capital ratios, with its Common Equity Tier 1 Capital Ratio at 12.71% and the Total Risk-Based Capital Ratio at 14.47% at December 31, 2024. Both Arrow and Arrow Bank continued to qualify as "well-capitalized" under the capital classification guidelines. As a result of these announcements, the company's shares have moved 1.6% on the market, and are now trading at a price of $26.3. For more information, read the company's full 10-K submission here.
