Arrow Financial Reports Third Quarter 2026 Results and Declares Dividend Following Acquisition

Arrow Financial Corporation released its financial results for the third quarter ended September 30, 2026, highlighting the inclusion of Adirondack Bancorp Inc. following its July 1 acquisition.

For the third quarter of 2026, Arrow reported a net income of $5.7 million, with a fully diluted earnings per share (EPS) of $0.31. This compares to a net income of $11.0 million and EPS of $0.66 for the second quarter of 2026. The company noted core EPS of $0.97, excluding approximately $15.6 million in merger-related expenses tied to the Adirondack transaction.

Financial and Operational Highlights

• Dividend Declaration: The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on November 23, 2026, to shareholders of record as of November 11, 2026.
• Acquisition Impact: The Adirondack Bancorp transaction added approximately $600 million in loans and $900 million in deposits, alongside $44.7 million in goodwill and $16.4 million in core deposit intangibles.
• Net Interest Income: Total net interest income reached $48.7 million, up 35.6% from the second quarter, supported by higher average earning assets from the acquisition.
• Capital Ratios: Arrow's Common Equity Tier 1 Capital Ratio stood at 11.63%, and the Total Risk-Based Capital Ratio was 13.46% as of September 30, 2026.

Practical Implications and Verification

Stakeholders and investors can review the complete Form 8-K and investor presentations directly through Arrow Financial Corporation's investor relations website. The company announced that its core banking system integration is scheduled for completion in the weeks following the report, with management projecting realization of approximately 95 percent of anticipated cost savings by the first quarter of 2027.