Arrow Financial Corporation

Arrow Financial Corporation reported strong financial results for FY 2025, with net income increasing to $44.0 million from $29.7 million in FY 2024, representing a 48.1% year-over-year growth. Diluted earnings per share rose to $2.65 from $1.77. The improvement was primarily driven by a 19.2% increase in net interest income to $133.2 million, resulting from higher loan yields and a lower cost of deposits, which expanded the net interest margin to 3.17% (3.19% FTE) from 2.72% (2.74% FTE). Noninterest income grew 15.5% to $32.4 million, while noninterest expense increased 5.8% to $102.9 million. Total assets grew 3.2% to $4.45 billion, supported by loan growth of $58.6 million (1.7%) and a $111.5 million (2.9%) increase in total deposits. Asset quality improved, with nonperforming assets declining to 0.20% of total assets from 0.50%. The company maintained strong capital ratios, with a Common Equity Tier 1 Capital Ratio of 13.01%.

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