<span item_type="fundamental" item_id="72e6be38f7b3d554916bd426ac8f44f8" counter_id="ST/US/AROW" env="prod"></span><span item_type="announcement" item_id="610213132844735745" env="prod"></span><p>Revenue: As of FY2025 Q4, the actual value is USD 43.41 M.</p><p>EPS: As of FY2025 Q4, the actual value is USD 0.85, beating the estimate of USD 0.8.</p><p>EBIT: As of FY2025 Q4, the actual value is USD -18.38 M.</p><p></p><h3>Financial Results Overview</h3><p>Arrow Financial Corporation (箭牌金融) reported a Net Income of $14.0 million for the fourth quarter of 2025 and $44.0 million for the full year 2025. Net Revenue was $43.4 million in 4Q25 and $165.6 million in FY2025. Return on Average Assets (ROA) was 1.24% for 4Q25 and 1.00% for FY2025. Return on Average Equity (ROE) stood at 13.08% for 4Q25 and 10.66% for FY2025. The Fully Tax Equivalent Net Interest Margin (FTE NIM) reached 3.25% in 4Q25, up from 3.24% in 3Q25, and was 3.19% for FY2025. Tangible Book Value per Share (TBV/Share) was $24.71 at the end of 2025, representing a 10.3% year-over-year increase <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Operational Metrics</h3><p>Net Charge-Offs were 0.08% in 4Q25 and 0.19% for FY2025. Non-Performing Loans (NPLs) totaled $8.5 million, which was 0.24% of Total Loans at the end of 2025. The Allowance for Credit Losses (ACL) to loans was 0.99%, with an Allowance to NPL coverage of 406%. The Efficiency Ratio was below 60% in 4Q25, while the FY2025 Efficiency Ratio was 62.0%, or 60.6% excluding unification expenses <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Non-Interest Income and Expense</h3><p>Total Non-Interest Income for 4Q25 was $8.268 million, compared to $8.716 million in 3Q25 and $4.229 million in 4Q24. For the full year, Total Non-Interest Income was $32.432 million in 2025, an increase from $28.074 million in 2024. Total Non-Interest Expense for 4Q25 was $25.804 million, slightly up from $25.433 million in 3Q25, but down from $25.838 million in 4Q24. Full-year Total Non-Interest Expense was $102.934 million in 2025, compared to $97.268 million in 2024, with 2025 expenses including $2.3 million related to unification efforts <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Balance Sheet Highlights</h3><p>As of December 31, 2025, Total Assets were $4,445.9 million, Total Deposits were $3,939.5 million, and Total Liabilities reached $4,014.0 million. Stockholders’ Equity was $431.9 million. Gross loans amounted to $3.5 billion, with a loan-to-deposit ratio of 87.65% and a wholesale funding ratio of 6.88%. The company reported 0% crypto/stablecoin deposits <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Loans</h3><p>The loan portfolio was approximately $3.45 billion as of December 31, 2025. Year-to-date loan growth was approximately $73 million, or 2.1%, excluding a $15 million reduction due to a 1Q credit event. Fourth quarter 2025 loan growth was approximately $11 million or 1.3% on an annualized basis <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Deposits</h3><p>Retail deposit rates decreased by 8 basis points from 1.68% to 1.60% in 4Q25 due to rate cuts. The company observed a favorable mix trend towards business deposits, which reduced municipal deposit exposure <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Investment Portfolio</h3><p>During 4Q25, the investment portfolio’s book yield increased by 9 basis points to 3.38%, with a duration of 3.33 years. Overall unrealized losses were approximately -3% of the investment portfolio value <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Dividends and Capital Actions</h3><p>Arrow Financial Corporation (箭牌金融) declared a quarterly cash dividend of $0.30 per share, payable on February 25, 2026, to shareholders of record as of February 11, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/arow-20260128.htm"></span>. This marks the 49th consecutive quarter of dividends <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>. In 2025, the company repurchased approximately $9.9 million of stock, totaling about 377.5 thousand shares at an average price of $26.32, with $5.1 million remaining under the current repurchase authorization <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Capital Position</h3><p>As of 4Q25, Arrow Financial Corporation (箭牌金融) maintained a Tier 1 Leverage Ratio of 9.68%, Common Equity Tier 1 Capital of 13.10%, Tier 1 Risk-Based Capital of 13.74%, and Total Risk-Based Capital of 14.86%. For Arrow Bank, the corresponding ratios were 9.26%, 13.23%, 13.24%, and 14.37%, respectively <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p><h3>Outlook / Guidance</h3><p>Arrow Financial Corporation (箭牌金融) is well positioned for 2026 following a strong finish to 2025. Net Interest Margin (NIM) expansion is expected to continue in 2026, with anticipated Federal Reserve Board rate cuts projected to accelerate further NIM expansion. Operating expenses are forecast to benefit from post-unification cost savings, leading to cost reduction or avoidance <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000007/q42025investorpresentati.htm"></span>.</p>

Arrow Financial | 8-K: FY2025 Q4 Revenue: USD 43.41 M