Arrow Financial Corp Reports Tripled Net Income

By Chris Stiles • Thursday, January 29 12:32 • Permanent Link

Arrow Financial Corporation (NASDAQGS: AROW) has reported a significant increase in net income and fully diluted earnings per share for the fourth quarter of 2025 compared to the same period in 2024. The company's net income for the fourth quarter of 2025 was $14.0 million, up from $4.5 million in the same period in 2024. Fully diluted earnings per share also rose to $0.85 from $0.27 in the fourth quarter of 2024.

For the year ended December 31, 2025, Arrow reported a net income of $44.0 million, with earnings per share of $2.65, representing a substantial increase from the prior year's net income of $29.7 million and earnings per share of $1.77.

The company's board of directors declared a quarterly cash dividend of $0.30 per share, reflecting a 3.4% increase from the previous quarter's cash dividend of $0.29 per share.

Arrow Financial Corporation President and CEO, David S. DeMarco, highlighted the exceptional results, indicating that the company entered 2026 with significant momentum and achieved a 50% growth in earnings per share in 2025.

Key Metrics for the Fourth Quarter of 2025: Reported record net income of $14.0 million or $0.85 earnings per share Achieved record net interest income of $35.1 million Recorded a tangible book value per share of $24.71, reflecting a 3.6% increase from the prior quarter Notably, the return on average assets exceeded 1.20%

Select 2025 Highlights and Key Metrics: Reported net income of $44.0 million or $2.65 earnings per share Achieved a record net interest margin of 3.17% (3.19% FTE) Recorded a tangible book value per share of $24.71, representing a 10.3% increase from the prior year The return on average assets stood at 1.00%

Income Statement: Net income for the fourth quarter of 2025 was $14.0 million, increasing from $12.8 million in the third quarter of 2025 Net interest income for the year ended December 31, 2025, was $133.2 million, reflecting a substantial increase of $21.4 million, or 19.2%, from the prior year * The net interest margin was 3.24% for the fourth quarter of 2025, as compared to 3.22% for the third quarter of 2025

Balance Sheet: * Total assets were $4.4 billion at December 31, 2025, showing an increase of $139.5 million, or 3.2%, compared to December 31, 2024

The company's regulatory capital ratios remained strong, with the common equity tier 1 capital ratio at 13.10% and the total risk-based capital ratio at 14.86% at December 31, 2025.

Arrow Bank National Association received a 5-star superior rating from BauerFinancial, Inc., securing its position as an "exceptional performance bank" for 75 consecutive quarters.

Arrow Financial Corporation continues to demonstrate strong financial performance and strategic growth, positioning itself for continued success in the future. Following these announcements, the company's shares moved -0.34%, and are now trading at a price of $32.67. For the full picture, make sure to review ARROW FINANCIAL CORP's 8-K report.

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