<span item_type="fundamental" item_id="0b6ef0449ee65d73384567f78d6236a9" counter_id="ST/US/AROW" env="prod"></span><span item_type="announcement" item_id="643178931125820673" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 62.42 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD 0.82, beating the estimate of USD 0.55.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -18.79 M.</p><p></p><h4>Dividend Declaration</h4><p>Arrow Financial Corporation declared a quarterly cash dividend of $0.30 per share on April 29, 2026, payable on May 26, 2026, to shareholders of record on May 12, 2026. <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/arow-20260429.htm"></span></p><h4>Net Income</h4><p>Arrow Financial Corporation reported net income of $13.5 million for the first quarter of 2026, a decrease from $14.0 million in the fourth quarter of 2025. Excluding approximately $790 thousand in non-core merger expenses, the company achieved adjusted operating results of $0.85 diluted earnings per share for the first quarter of 2026, compared to reported diluted earnings per share of $0.82. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Net Interest Income</h4><p>Net interest income for the first quarter of 2026 was $36.1 million, an increase of 2.8% from $35.1 million in the fourth quarter of 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Net Interest Margin</h4><p>Net interest margin, on an FTE basis, increased to 3.48% for the first quarter of 2026, up from 3.25% in the fourth quarter of 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Provision for Credit Losses</h4><p>The provision for credit losses was $548 thousand for the first quarter of 2026, decreasing from $846 thousand in the fourth quarter of 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Non-Interest Income</h4><p>Non-interest income for the first quarter of 2026 was $8.6 million, an increase from $8.3 million in the fourth quarter of 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Non-Interest Expense</h4><p>Non-interest expense for the first quarter of 2026 was $26.9 million, an increase from $25.8 million in the fourth quarter of 2025, and included approximately $800 thousand of expenses related to the announced acquisition of Adirondack Bancorp, Inc. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Provision for Income Taxes</h4><p>The provision for income taxes was $3.9 million with an effective tax rate of 22.3% for the first quarter of 2026, compared to $2.7 million and 22.2%, respectively, for the fourth quarter of 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Efficiency Ratio</h4><p>The efficiency ratio was 59.89% for the first quarter of 2026, and 58.13% when excluding merger-related expenses. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Return on Average Assets (ROA)</h4><p>Return on Average Assets (ROA) was 1.23% for the first quarter of 2026, and 1.29% when adjusted for merger-related expenses. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Total Assets</h4><p>Total assets amounted to $4.5 billion at March 31, 2026, an increase of $76.2 million, or 1.7%, compared to $4.445862 billion at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Investments</h4><p>Total investments were $594.6 million as of March 31, 2026, an increase of $21.8 million, or 3.8%, compared to $572.8 million at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Loans</h4><p>Total loans were $3.4 billion as of March 31, 2026, decreasing by $14.1 million in the first quarter of 2026 from $3.453093 billion at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Allowance for Credit Losses</h4><p>The allowance for credit losses was $34.1 million, representing 0.99% of loans outstanding, as of March 31, 2026, compared to $34.3 million, or 0.99% of loans outstanding, at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Net Charge-offs</h4><p>Annualized net charge-offs were 0.10% for the three-month period ended March 31, 2026, compared to 0.08% for the three-month period ended December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Nonperforming Assets</h4><p>Nonperforming assets were $5.1 million, representing 0.11% of period-end assets, as of March 31, 2026, a decrease from $8.7 million, or 0.20%, at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Deposits</h4><p>Deposit balances were $4.0 billion at March 31, 2026, an increase of $74.5 million from $3.939469 billion at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Total Stockholders’ Equity</h4><p>Total stockholders’ equity was $440.1 million at March 31, 2026, an increase of $8.3 million, or 1.9%, from $431.852 million at December 31, 2025. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Capital Ratios</h4><p>As of March 31, 2026, Arrow Financial Corporation’s Common Equity Tier 1 Capital Ratio was 13.30% and Total Risk-Based Capital Ratio was 15.04%, both exceeding “well capitalized” regulatory standards. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Loan-to-Deposit Ratio</h4><p>The Loan-to-Deposit ratio was 85.7% for the first quarter of 2026. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Cost of Retail Deposits</h4><p>The cost of retail deposits decreased by 11 basis points to 1.62% from the prior quarter. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p><h4>Outlook / Guidance</h4><p>The acquisition of Adirondack Bancorp, Inc. is expected to close early in the third quarter of 2026, adding approximately $950 million in assets and 19 new branch locations. This transaction is anticipated to provide significant EPS accretion in 2027 and beyond. The company also expects loan origination volume to rebound in the second quarter and plans to implement tax strategies to lower the tax rate for the remainder of 2026. <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/717538/000071753826000050/ex99-earningsq12026.htm"></span></p>

Arrow Financial | 8-K: FY2026 Q1 Revenue: USD 62.42 M