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Mar 31, 2020
Arrow Financial Q1 2020 Earnings Report
Net income reported a decrease, but loan growth and net interest income increased year-over-year.
Key Takeaways
Arrow Financial Corporation reported a net income of $8.1 million for Q1 2020, a decrease from $8.7 million in Q1 2019. However, total loans grew to $2.4 billion, and net interest income increased to $23.0 million.
Total loans grew by $28.1 million in Q1 2020.
Net income for Q1 2020 was $8.1 million.
Provision for loan losses in Q1 2020 was $2.8 million, reflecting COVID-19 uncertainty.
Diluted earnings per share (EPS) for Q1 2020 was $0.54.
Forward Guidance
Arrow Financial Corporation is actively monitoring the impact of the COVID-19 pandemic on its business and results of operations. The Company expects potential adverse effects on customer deposits, borrower obligations, and demand for financial products and services.
Positive Outlook
- All locations, including subsidiary banks' branches, remain open and capable of meeting customer needs.
- Arrow has taken steps to mitigate against the impact of the pandemic on its operations.
- Arrow's liquidity position was strong and provides flexibility to address unexpected near-term disruptions.
- Contingent collateralized lines of credit are established and available through the FHLBNY and FRB, totaling $1.2 billion.
- Arrow's capital reserves are well positioned to address the uncertainties related to the COVID-19 pandemic.
Challenges Ahead
- The Company expects adverse effects on customer deposits due to the slowing economy.
- The Company anticipates difficulties in borrowers satisfying their obligations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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