Revenue instability remains a primary concern, evidenced by the recent quarterly decline to $11.5 million and a sharp 25.4% drop in EPS during 2025Q4.
ArrowMark Financial Corp. (BANX) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Net Interest Income | 47.3M | 22.68M | 25.22M | 24.65M | 18.2M | 13.41M | 11.54M | 10.55M | 10.93M | 11.36M | 9.12M | 6.79M | 2.14M |
| NII Growth % | -61.61% | -10.07% | 2.32% | 35.43% | 35.74% | 16.19% | 9.38% | -3.5% | -3.74% | 24.49% | 34.28% | 217.06% | - |
| Net Interest Margin % | 19.01% | 11.13% | 12.11% | 12.1% | 8.73% | 6.13% | 6.13% | 6.4% | 5.57% | 6.66% | 4.43% | 3.53% | 1.17% |
| Interest Income | 54.46M | 26.53M | 29.22M | 28.2M | 20.53M | 14.7M | 12.3M | 11.96M | 12.84M | 13.12M | 10.9M | 8.16M | 2.63M |
| Interest Expense | 7.17M | 3.85M | 4M | 3.55M | 2.33M | 1.3M | 765.86K | 1.41M | 1.9M | 1.77M | 1.78M | 1.37M | 489.17K |
| Loan Loss Provision | -1.17M | 236.27K | -4M | -3.55M | -2.33M | -1.3M | -765.86K | -1.41M | -1.9M | -1.77M | -1.78M | -1.37M | -489.17K |
| Non-Interest Income | -10.73M | -9.17M | 247.08K | 484.9K | 1.01M | 2.66M | 4.35M | 4.39M | 4.89M | 4.25M | 6.14M | 7.6M | 6M |
| Non-Interest Income % | -29.36% | -67.83% | 0.97% | 1.93% | 5.23% | 16.55% | 27.37% | 29.41% | 30.92% | 27.24% | 40.21% | 52.82% | 73.68% |
| Total Net Revenue | 36.56M | 13.51M | 25.47M | 25.13M | 19.2M | 16.07M | 15.89M | 14.94M | 15.82M | 15.61M | 15.26M | 14.4M | 8.14M |
| Revenue Growth % | - | -46.94% | 1.33% | 30.87% | 19.53% | 1.12% | 6.32% | -5.57% | 1.39% | 2.29% | 5.97% | 76.87% | - |
| Non-Interest Expense | -2.87M | -8.61M | 5.98M | 6.02M | 5.83M | 5.13M | 4.8M | 4.74M | 5.04M | 5.16M | 5.08M | 5.05M | 3.78M |
| Efficiency Ratio | -7.86% | -63.71% | 23.49% | 23.96% | 30.33% | 31.92% | 30.24% | 31.74% | 31.87% | 33.08% | 33.31% | 35.06% | 46.45% |
| Operating Income | 40.6M | 21.89M | 23.49M | 22.66M | 15.71M | 12.24M | 11.85M | 11.61M | 12.68M | 12.21M | 11.95M | 10.72M | 4.85M |
| Operating Margin % | 111.06% | 161.96% | 92.22% | 90.17% | 81.8% | 76.16% | 74.58% | 77.71% | 80.16% | 78.23% | 78.34% | 74.43% | 59.56% |
| Operating Income Growth % | - | -6.81% | 3.64% | 44.25% | 28.38% | 3.26% | 2.05% | -8.45% | 3.88% | 2.16% | 11.53% | 121.04% | - |
| Pretax Income | 33.52M | 17.89M | 17.25M | 20.61M | 5.61M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.77M |
| Pretax Margin % | 91.68% | 132.37% | 67.71% | 82% | 29.23% | 78.63% | 48.97% | 84.35% | 63.41% | 77.08% | 45.97% | 57.55% | 58.65% |
| Income Tax | 500.09K | 0 | 500.09K | 360.47K | 246.96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 240.61K |
| Effective Tax Rate % | 1.49% | 0% | 2.9% | 1.75% | 4.4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5.04% |
| Net Income | 33.02M | 17.89M | 16.74M | 20.25M | 5.37M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.53M |
| Net Margin % | 90.31% | 132.37% | 65.75% | 80.56% | 27.94% | 78.63% | 48.97% | 84.35% | 63.41% | 77.08% | 45.97% | 57.55% | 55.69% |
| Net Income Growth % | - | 6.83% | -17.3% | 277.34% | -57.53% | 62.38% | -38.28% | 25.63% | -16.6% | 71.51% | -15.36% | 82.78% | - |
| Net Income (Continuing) | 33.02M | 17.89M | 16.74M | 20.25M | 5.37M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.53M |
| EPS (Diluted) | - | 2.29 | 2.35 | 2.84 | 0.75 | 1.88 | 1.18 | 1.92 | 1.53 | 1.84 | 1.06 | 1.27 | 0.79 |
| EPS Growth % | - | -2.55% | -17.25% | 278.67% | -60.11% | 59.32% | -38.54% | 25.49% | -16.85% | 73.58% | -16.54% | 60.76% | - |
| EPS (Basic) | - | 2.29 | 2.35 | 2.84 | 0.75 | 1.88 | 1.18 | 1.92 | 1.53 | 1.84 | 1.06 | 1.27 | 0.79 |
| Diluted Shares Outstanding | 9.69M | 7.81M | 7.13M | 7.13M | 7.15M | 6.72M | 6.59M | 6.57M | 6.56M | 6.54M | 6.62M | 6.52M | 5.74M |
Quick answers to the most common questions about buying BANX stock.
For fiscal year 2025, ArrowMark Financial Corp. (BANX) reported total revenue of $13.5M. This represents a 66.0% increase compared to $8.1M in 2014.
ArrowMark Financial Corp. (BANX) is profitable, generating $17.9M in net income for the fiscal year ending 2025 with a net profit margin of 132.4%.
ArrowMark Financial Corp. (BANX) reported an operating income of $21.9M, resulting in an operating profit margin of 162.0%. This margin reflects the operational efficiency of the business before interest and taxes.
ArrowMark Financial Corp. (BANX) generated $13.3M in gross profit for the year, representing a gross profit margin of 98.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory Capital Valuation Sensitivity
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Contraction
As indicated by the most recent quarterly data, BANX experienced a significant revenue decline to $11.5 million, reflecting a broader trend of instability in interest and dividend income that suggests the fund's core earning power is currently facing material headwinds within its community banking investment portfolio.
The erratic nature of top-line performance suggests that the fund's reliance on specialized Tier 2 capital instruments leaves it vulnerable to the cyclicality of the regional banking sector. Investors should monitor whether this contraction represents a temporary adjustment in asset pricing or a more permanent erosion of the fund's yield-generating capacity.
Margin Distortion Reflects Valuation Fluctuations
Based on reported financial statements, the net margin reached 175.7% in 2025Q2, a figure that highlights the disconnect between recurring interest income and the non-operating valuation adjustments that frequently distort the bottom-line profitability of this closed-end fund structure compared to its operational peers.
The extreme variance in net margins suggests that investors cannot rely on traditional profitability metrics to gauge the fund's operational efficiency. The lack of consistent gross margin stability implies that the underlying asset valuations are subject to significant, non-cash volatility that complicates the assessment of true economic performance.
Conservative Leverage Limits Growth Potential
According to historical balance sheet data, BANX maintains a debt-to-equity ratio of approximately 0.15%, which suggests a highly defensive posture that may be insulating the fund from liquidity crises while simultaneously hindering its ability to enhance returns through prudent use of leverage in a high-rate environment.
While this low leverage profile provides a safety buffer against forced liquidations, it appears to limit the fund's capacity to scale effectively during periods of market opportunity. This structural choice warrants further investigation into whether management is prioritizing capital preservation at the expense of competitive yield generation.
Valuation Marks Obscure Credit Risks
Analysis of the income statement reveals that the reliance on Level 3 inputs for portfolio valuation may mask underlying credit deterioration, as evidenced by the sharp 25.4% decline in EPS reported in 2025Q4 despite the fund's historical focus on stable, yield-bearing subordinated debt instruments.
Short-term observers should be wary that the reported net income may not fully reflect the potential for credit losses within the community bank holdings. The disconnect between the fund's conservative leverage and its declining earnings suggests that the primary risk may lie in the quality of the underlying assets rather than the fund's capital structure.