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Dec 31, 2023
Arrow Financial Q4 2023 Earnings Report
Arrow Financial reported a decrease in net income and EPS compared to the same period last year, while achieving record loan balances and maintaining strong credit, capital, and liquidity positions.
Key Takeaways
Arrow Financial Corporation reported a net income of $7.7 million, with earnings per share of $0.46 for Q4 2023, compared to $12.1 million and $0.71 per share for the same period in 2022. The company achieved record loan balances and maintained strong credit, capital, and liquidity positions. The Board of Directors declared a quarterly cash dividend of $0.27 per share.
Net income was $7.7 million, or $0.46 per share, down from $12.1 million, or $0.71 per share, in Q4 2022.
Loans reached a record of $3.2 billion, an increase of $68 million during the fourth quarter.
Net interest margin was 2.53% for the quarter.
The company sold all Visa Class B shares for a pre-tax gain of $9.3 million.
Forward Guidance
Arrow Financial's balance sheet transactions are expected to improve profitability and asset-liability management. The reinvestment of proceeds from the sale of Visa Class B shares and repositioning of the investment portfolio is projected to improve annual interest income.
Positive Outlook
- Balance sheet transactions are expected to improve profitability.
- Asset-liability management position is expected to improve.
- Reinvestment of proceeds is projected to improve annual interest income.
- Annual interest income run-rate improvement of over $3 million in pre-tax earnings.
- Maintaining strong capital positions.
Challenges Ahead
- Challenging year due to decrease in net interest income.
- Increase of non-interest expense.
- Deposits have continued to migrate to higher cost products
- Competitive rate pricing creates pressure
Historical Earnings Impact
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Avg. Return Before/After Earnings
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