GLENS FALLS, N.Y. - Arrow Financial (NASDAQ:AROW) Corporation (NASDAQ:AROW), a multi-bank holding company, reported a net income of $8.6 million for the second quarter of 2024, a notable increase from $6.0 million in the same period last year. The fully diluted earnings per share (EPS) for this quarter stood at $0.52 compared to $0.35 in the second quarter of 2023.
The company's Board of Directors declared a quarterly cash dividend of $0.27 per share, scheduled for payment on August 23, 2024, to shareholders on record as of August 12, 2024. This marks Arrow's 45th consecutive quarterly cash dividend.
Arrow's President and CEO, David S. DeMarco, expressed satisfaction with the quarter's performance and highlighted the strategic expansion of their insurance business through the acquisition of A&B Agency, Inc. assets. He also noted the upcoming branch acquisition in Whitehall, New York, and the regulatory approval received on July 22 for the merger of their banking subsidiaries into Arrow Bank National Association.
The second quarter saw a $57.6 million growth in gross loans and an improvement in the net interest margin to 2.67%. The average loan yields increased to 5.17%, and deposit balances remained strong at $3.7 billion. The tangible book value per share increased to $21.54, with a return on average assets (ROA) improving to 0.82%.
Arrow received regulatory approval for a branch acquisition in Whitehall, New York, with approximately $35 million in deposits, expected to close in August 2024.
The information provided is based on a press release statement from Arrow Financial Corporation.
In other recent news, Arrow Financial Corporation has made significant changes in its leadership, appointing Tenée R. Casaccio as the new Chair of its Board of Directors. Casaccio, who has served on Arrow's Board since 2014 and been a director of its banking and insurance subsidiaries, is the first woman to lead the Arrow Board. Her appointment follows the retirement of William L. Owens, Esq.
Casaccio's career spans three decades at JMZ Architects and Planners, P.C., where she has been instrumental in expanding the firm's operations across 15 states. David S. DeMarco, President and CEO of Arrow, expressed confidence in her leadership abilities and understanding of the New York business climate.
These are recent developments within Arrow Financial Corporation, indicating a shift towards more diverse leadership. Casaccio, a native of Bolton Landing, New York, is also deeply involved in the local community, having held positions with several regional organizations. This change in leadership is expected to steer the company towards future growth.
InvestingPro Insights
Following Arrow Financial Corporation's (NASDAQ:AROW) positive earnings report for the second quarter of 2024, the company's financial health and stock performance metrics provide additional context for investors.
With a market capitalization of $518.14 million and a price-to-earnings (P/E) ratio of 18.23, Arrow Financial appears to be maintaining a solid position in the market. The adjusted P/E ratio for the last twelve months as of Q1 2024 is 17.76, indicating a slight improvement in valuation over the period.
The company's commitment to shareholder returns is evident, as highlighted by one of the InvestingPro Tips: Arrow Financial has raised its dividend for 31 consecutive years, underscoring its reliability as a dividend-paying stock. Moreover, the stock's dividend yield as of the latest data stands at 3.48%, with a dividend growth of 3.0% over the last twelve months. This is particularly noteworthy for income-focused investors seeking stable dividend-paying companies.
Investors should also consider the stock's performance, with a one-year price total return of 67.45% and trading near its 52-week high, which is 96.91% of the peak price. This robust performance is further supported by strong returns over the last three months, at 38.42%. The company's solid financial results and strategic initiatives, such as the acquisition of A&B Agency, Inc. and the upcoming branch acquisition in Whitehall, may continue to drive positive sentiment in the market.
For those looking to delve deeper into Arrow Financial's prospects, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available, which can be accessed to gain a comprehensive understanding of AROW's investment potential. Interested investors can take advantage of the exclusive offer by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing them with valuable tools for informed decision-making.
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