Arrow Financial Corporation Q1 2026 Earnings Release and Financial Condition

Arrow Financial Corporation reported net income of $13.5 million, or $0.82 per diluted share, for the first quarter of 2026. This compares to net income of $14.0 million, or $0.85 per diluted share, for the fourth quarter of 2025. The results for the first quarter of 2026 include approximately $790 thousand ($0.03 per share) of non-core merger expenses related to the announced acquisition of Adirondack Bancorp, Inc. Excluding these expenses, Arrow achieved record operating results of $0.85 per share. The company also declared a quarterly cash dividend of $0.30 per share, payable on May 26, 2026. The acquisition of Adirondack Bancorp, Inc. is expected to close in the third quarter of 2026 and will add approximately $950 million in assets and 19 new branch locations. The company's net interest margin improved to 3.48% on a FTE basis, up from 3.25% in the prior quarter. Total assets were $4.5 billion at March 31, 2026, an increase of $76.2 million from December 31, 2025. Total deposits were $4.0 billion, an increase of $74.5 million from December 31, 2025. The company's regulatory capital ratios remain strong, with the Common Equity Tier 1 Capital Ratio at 13.30% and the Total Risk-Based Capital Ratio at 15.04%.