Arrow Financial Corporation (AROW) 10-Year Financial Performance & Capital Metrics

AROW • • Banking & Credit

Financial ServicesRegional BanksCommunity & Regional Retail BankingNortheast Community Banks

AboutArrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and improvements to commercial properties, as well as commercial construction and land development loans to finance projects. The company's lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations into the secondary market. Further, the company provides retirement planning, trust, and estate administration services for individuals; and pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, as well as surrounding areas. It owns 26 branch banking offices; and leases 12 branch banking offices, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.Show more

Net Interest Income $112M +6.6%
Total Revenue $223M +16.4%
Net Income $30M -1.2%
Return on Equity 7.61% -7.2%
Net Interest Margin 2.59% +3.2%
Efficiency Ratio 43.6% -10.2%
ROA 0.7% -5.1%
Equity / Assets 9.31% +2.2%
Book Value per Share 23.94 +7.4%
Tangible BV/Share 22.40 +7.0%
Debt/Equity 0.08 -55.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Efficient operations: 43.6% efficiency ratio
✓20 consecutive years of dividend growth
✓Healthy dividend yield of 3.3%
✓Trading near 52-week high
✓Trading at only 1.4x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.89%

5Y10.03%

3Y14.68%

TTM-

Profit (Net Income) CAGR

10Y2.43%

5Y-4.54%

3Y-15.85%

TTM4.39%

EPS CAGR

10Y1.87%

5Y-4.43%

3Y-15.37%

TTM6.67%

ROCE

10Y Avg11.83%

5Y Avg11.31%

3Y Avg9.96%

Latest7.94%

Peer Comparison

Northeast Community Banks

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
DCOMDime Community Bancshares, Inc.	1.37B	31.13	56.60	0.1%	4.5%	4.02%	6.79%	0.70
EBCEastern Bankshares, Inc.	4.4B	19.56	29.64	91.64%	11.17%	1.3%	6.14%	0.01
LYGLloyds Banking Group plc	80.5B	5.48	21.92	10.79%	11.75%	9.93%		1.76
CFGCitizens Financial Group, Inc.	26.03B	60.61	20.00	1.31%	12.22%	6.6%	7.22%	0.51
PFSProvident Financial Services, Inc.	2.65B	20.29	19.32	63.91%	10.13%	7.51%	16.04%	0.93
CBUCommunity Bank System, Inc.	3.3B	62.73	18.24	24.44%	19.4%	10.34%	6.71%	0.57
VLYValley National Bancorp	6.7B	12.02	17.42	6.51%	10.65%	6.53%	8.18%	0.50
INDBIndependent Bank Corp.	3.8B	76.62	16.95	6.89%	19.72%	7.76%	5.51%	0.23

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	65.92M	71.56M	77.65M	84.02M	88.05M	99.2M	110.36M	118.34M	104.83M	111.73M
NII Growth %	0.08%	0.09%	0.09%	0.08%	0.05%	0.13%	0.11%	0.07%	-0.11%	0.07%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	70.74M	76.92M	84.66M	96.5M	109.76M	111.9M	115.55M	129.65M	162.56M	194.99M
Interest Expense	4.81M	5.36M	7.01M	12.48M	21.71M	12.69M	5.2M	11.31M	57.73M	83.26M
Loan Loss Provision	1.35M	2.03M	2.74M	2.61M	2.08M	9.32M	272K	4.8M	3.38M	5.18M
Non-Interest Income+	28.12M	27.83M	27.64M	28.95M	28.55M	32.66M	32.37M	30.9M	29.12M	28.07M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	98.86M	104.75M	112.3M	125.45M	138.31M	144.55M	147.92M	160.55M	191.68M	223.07M
Revenue Growth %	0.04%	0.06%	0.07%	0.12%	0.1%	0.05%	0.02%	0.09%	0.19%	0.16%
Non-Interest Expense	57.43M	59.61M	62.7M	65.06M	67.45M	70.68M	78.05M	81.53M	93.05M	97.27M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	35.27M	37.75M	39.85M	45.3M	47.08M	51.86M	64.4M	62.91M	37.52M	37.36M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.05%	0.07%	0.06%	0.14%	0.04%	0.1%	0.24%	-0.02%	-0.4%	-0%
Pretax Income+	35.27M	37.75M	39.85M	45.3M	47.08M	51.86M	64.4M	62.91M	37.52M	37.36M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	10.61M	11.21M	10.53M	9.03M	9.6M	11.04M	14.55M	14.11M	7.45M	7.65M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	24.66M	26.53M	29.33M	36.28M	37.48M	40.83M	49.86M	48.8M	30.07M	29.71M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.06%	0.08%	0.11%	0.24%	0.03%	0.09%	0.22%	-0.02%	-0.38%	-0.01%
Net Income (Continuing)	24.66M	26.53M	29.33M	36.28M	37.48M	40.83M	49.86M	48.8M	30.07M	29.71M
EPS (Diluted)+	1.55	1.65	1.81	2.22	2.22	2.41	2.92	2.86	1.77	1.77
EPS Growth %	0.05%	0.06%	0.1%	0.23%	0%	0.09%	0.21%	-0.02%	-0.38%	0%
EPS (Basic)	1.56	1.66	1.82	2.24	2.23	2.42	2.93	2.87	1.77	1.78
Diluted Shares Outstanding	15.92M	16.09M	16.21M	16.31M	16.86M	16.91M	17.05M	17.06M	17.04M	16.75M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	51.07M	57.35M	72.84M	84.24M	70.22M	380.99M	457.7M	64.66M	142.54M	154.55M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	2.29B	2.44B	2.58B	2.79B	2.98B	3.16B	3.4B	3.71B	3.82B	3.93B
Investments Growth %	0.11%	0.07%	0.06%	0.08%	0.07%	0.06%	0.08%	0.09%	0.03%	0.03%
Long-Term Investments	1.89B	2.09B	2.28B	2.48B	2.62B	2.79B	2.84B	3.14B	3.32B	3.47B
Accounts Receivables	0	0	0	0	0	0	0	0	0	0
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	21.87M	21.87M	21.87M	21.87M	21.87M	21.87M	21.87M	21.87M	21.87M	23.79M
Intangible Assets	3.11M	2.7M	2.29M	1.85M	1.66M	1.95M	1.92M	1.5M	1.11M	2.06M
PP&E (Net)	27.44M	26.94M	27.62M	30.45M	40.63M	42.61M	46.22M	56.49M	59.64M	59.72M
Other Assets	53.03M	56.79M	57.61M	55.61M	70.18M	84.73M	96.58M	114.63M	126.93M	134.51M
Total Current Assets	453.38M	404.35M	373.04M	401.77M	427.56M	746.28M	1.02B	638.15M	640.3M	617.66M
Total Non-Current Assets	1.99B	2.2B	2.39B	2.59B	2.76B	2.94B	3.01B	3.33B	3.53B	3.69B
Total Assets+	2.45B	2.61B	2.76B	2.99B	3.18B	3.69B	4.03B	3.97B	4.17B	4.31B
Asset Growth %	0.1%	0.07%	0.06%	0.08%	0.07%	0.16%	0.09%	-0.01%	0.05%	0.03%
Return on Assets (ROA)	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Accounts Payable	0	0	0	0	0	0	0	0	0	0
Total Debt+	262.17M	356.84M	349.97M	587.66M	366.35M	87.7M	70.17M	106.92M	71.57M	33.6M
Net Debt	211.1M	299.48M	277.13M	503.42M	296.13M	-293.29M	-387.53M	42.26M	-70.97M	-120.94M
Long-Term Debt	157M	198M	180M	299M	180M	65M	65M	74.8M	46.5M	28.6M
Short-Term Debt	105.17M	158.84M	169.97M	288.66M	181.1M	17.49M	0	27M	20M	0
Other Liabilities	-60.38M	-100.99M	-84.22M	-214.49M	-99.86M	31.82M	36.1M	10.69M	30.96M	43.91M
Total Current Liabilities	2.14B	2.28B	2.42B	2.63B	2.8B	3.25B	3.55B	3.53B	3.71B	3.83B
Total Non-Current Liabilities	96.62M	97.01M	95.78M	84.51M	85.39M	102.03M	106.27M	90.61M	82.53M	77.52M
Total Liabilities	2.23B	2.37B	2.51B	2.72B	2.88B	3.35B	3.66B	3.62B	3.79B	3.91B
Total Equity+	213.97M	232.85M	249.6M	269.58M	301.73M	334.39M	371.19M	353.54M	379.77M	400.9M
Equity Growth %	0.06%	0.09%	0.07%	0.08%	0.12%	0.11%	0.11%	-0.05%	0.07%	0.06%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.12%	0.12%	0.12%	0.14%	0.13%	0.13%	0.14%	0.13%	0.08%	0.08%
Book Value per Share	13.44	14.47	15.39	16.53	17.89	19.77	21.77	20.72	22.29	23.94
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	17.42M	17.94M	18.48M	19.04M	19.61M	20.19M	20.8M	21.42M	22.07M	22.07M
Additional Paid-in Capital	250.68M	270.88M	290.22M	314.53M	335.36M	353.66M	378M	400.27M	412.55M	413.48M
Retained Earnings	32.14M	28.64M	28.82M	29.26M	33.22M	41.9M	54.08M	65.4M	65.79M	77.22M
Accumulated OCI	-7.97M	-6.83M	-8.51M	-13.81M	-6.36M	-816K	347K	-49.66M	-33.42M	-18.45M
Treasury Stock	-77.2M	-77.38M	-79.2M	-79.33M	-80.09M	-80.55M	-82.03M	-83.9M	-87.22M	-93.4M
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	28.93M	34.7M	37.83M	41.98M	43.94M	42.31M	68.21M	59.71M	20.58M	34.47M
Operating CF Growth %	-0.06%	0.2%	0.09%	0.11%	0.05%	-0.04%	0.61%	-0.12%	-0.66%	0.67%
Net Income	24.66M	26.53M	29.33M	36.28M	37.48M	40.83M	49.86M	48.8M	30.07M	29.71M
Depreciation & Amortization	6.29M	5.94M	5.4M	4.75M	5.5M	6.87M	7.83M	7.55M	6.72M	5.36M
Deferred Taxes	1.04M	-283K	-1.53M	-92K	344K	-2.24M	945K	-1.25M	1.8M	-789K
Other Non-Cash Items	-2.45M	1.41M	2.87M	2.16M	2.29M	-1.93M	9.82M	4.33M	1.12M	6.8M
Working Capital Changes	-1.65M	-521K	825K	-1.86M	-2.5M	-1.75M	-1.03M	-570K	-19.95M	-7.42M
Cash from Investing+	-229.54M	-157.79M	-148.57M	-227.77M	-192.23M	-187.32M	-274.6M	-393.06M	-82.65M	-88.95M
Purchase of Investments	-270.03M	-217.38M	-158.11M	-92.25M	-135.35M	-181.19M	-332.75M	-196.24M	-81.83M	-157.22M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	132K	72K	96K	98K	0	0	0	0	0	32.35M
Other Investing	-166.8M	-182.15M	-198.23M	-251.3M	-186.76M	-205.11M	-83.61M	-318.76M	-225.87M	-183.49M
Cash from Financing+	205.39M	129.38M	126.22M	197.19M	134.27M	455.77M	283.1M	-59.69M	139.95M	66.49M
Dividends Paid	-12.7M	-13.09M	-13.6M	-14.39M	-15.21M	-15.74M	-16.3M	-17.44M	-17.98M	-18.29M
Share Repurchases	-1.5M	-2.14M	-3.25M	-2.1M	-2.47M	-1.58M	-2.66M	-2.87M	-3.61M	-6.79M
Stock Issued	886K	1.74M	1.68M	1.76M	1.78M	1.81M	1.84M	1.9M	472K	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	1000K	-1000K	-1000K	-1000K	1000K	-1000K	-1000K
Other Financing	128.95M	89.21M	130.25M	103.23M	272.75M	619.93M	317.76M	-51.02M	189.42M	109.53M
Net Change in Cash+	4.77M	6.29M	15.48M	11.4M	-14.02M	310.77M	76.7M	-393.04M	77.88M	12.01M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	46.3M	51.07M	57.35M	72.84M	84.24M	70.22M	380.99M	457.7M	64.66M	142.54M
Cash at End	51.07M	57.35M	72.84M	84.24M	70.22M	380.99M	457.7M	64.66M	142.54M	154.55M
Interest Paid	4.86M	5.34M	6.96M	12.21M	20.84M	13.8M	5.37M	5.75M	51.83M	84.49M
Income Taxes Paid	9.36M	11.96M	11.45M	10.04M	9.93M	10.97M	14.76M	13.02M	6.64M	8.85M
Free Cash Flow+	27.3M	33.25M	35.23M	36.87M	36.16M	37.18M	61.07M	45.46M	13.5M	28.87M
FCF Growth %	-0.06%	0.22%	0.06%	0.05%	-0.02%	0.03%	0.64%	-0.26%	-0.7%	1.14%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	11.89%	11.88%	12.16%	13.98%	13.12%	12.84%	14.13%	13.47%	8.2%	7.61%
Return on Assets (ROA)	1.06%	1.05%	1.09%	1.26%	1.21%	1.19%	1.29%	1.22%	0.74%	0.7%
Net Interest Margin	2.7%	2.75%	2.81%	2.81%	2.77%	2.69%	2.74%	2.98%	2.51%	2.59%
Efficiency Ratio	58.09%	56.91%	55.84%	51.86%	48.77%	48.89%	52.76%	50.78%	48.54%	43.6%
Equity / Assets	8.75%	8.94%	9.04%	9.02%	9.48%	9.07%	9.22%	8.91%	9.11%	9.31%
Book Value / Share	13.44	14.47	15.39	16.53	17.89	19.77	21.77	20.72	22.29	23.94
NII Growth	7.91%	8.55%	8.51%	8.2%	4.8%	12.67%	11.24%	7.24%	-11.42%	6.58%
Dividend Payout	51.5%	49.34%	46.37%	39.66%	40.58%	38.55%	32.69%	35.75%	59.79%	61.55%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Deposit Account	10.13M	10.18M	10M	11.46M	11.63M	10.8M	10.89M
Deposit Account Growth	-	0.41%	-1.70%	14.59%	1.43%	-7.12%	0.87%
Fiduciary and Trust	9.26M	8.81M	8.89M	10.14M	9.71M	9.44M	9.95M
Fiduciary and Trust Growth	-	-4.82%	0.92%	14.08%	-4.25%	-2.75%	5.38%

Frequently Asked Questions

Valuation & Price

Arrow Financial Corporation (AROW) has a price-to-earnings (P/E) ratio of 18.5x. This is roughly in line with market averages.

Growth & Financials

Arrow Financial Corporation (AROW) grew revenue by 16.4% over the past year. This is strong growth.

Yes, Arrow Financial Corporation (AROW) is profitable, generating $34.4M in net income for fiscal year 2024 (13.3% net margin).

Dividend & Returns

Yes, Arrow Financial Corporation (AROW) pays a dividend with a yield of 3.33%. This makes it attractive for income-focused investors.

Arrow Financial Corporation (AROW) has a return on equity (ROE) of 7.6%. This is below average, suggesting room for improvement.

Industry Metrics

Arrow Financial Corporation (AROW) has a net interest margin (NIM) of 2.6%. NIM has been under pressure due to interest rate environment.

Arrow Financial Corporation (AROW) has an efficiency ratio of 43.6%. This is excellent, indicating strong cost control.

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