NASDAQ$AROW

Arrow Financial Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Net income reported a decrease, but loan growth and net interest income increased year-over-year.

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.

Headline financials

Total Revenue

$30.7M

Previous: $28M+9.6%
EPS (adj)

$0.50

Previous: $0.56-10.7%
Net Interest Margin

3.0%

Previous: 3.0%+1.3%
Capital Expenditures

-$1.07M

Previous: -$2.1M+48.9%
Free Cash Flow

$7.06M

Previous: $6.64M+6.3%
Net Income

$8.13M

Previous: $8.73M-6.9%
Operating Income

$21.3M

Previous: $20.6M+3.7%
Gross Profit

$27.9M

Previous: $27.5M+1.4%
Cash & Equivalents

$139M

Previous: $61.2M+126.2%
Total Assets

$3.29B

Previous: $2.98B+10.3%
Stock-Based Comp

$103K

Previous: $95K+8.4%

Revenue & EPS history

Arrow Financial · Revenue · Quarterly

$30.7M

Q1 2020+9.6%vs Q1 2019
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • The Company expects adverse effects on customer deposits due to the slowing economy.
  • The Company anticipates difficulties in borrowers satisfying their obligations.
  • A decline in the demand for loans and other financial products and services is expected.
  • Increased unemployment and decreased consumer and commercial spending are anticipated.
  • There may be adverse effects on the company due to deteriorating economic outlook

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.8%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.6%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+11.8%

Q3 2023

Best reaction

-5.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+2.8%+1.7%
Q4 2025+1.9%+9.3%+2.7%
Q3 2025+3.0%+14.3%+14.0%
Q2 2025-1.4%-3.5%+0.2%
Q1 2025-0.2%+0.4%-1.0%
Q4 2024-2.1%-2.6%-2.2%
Q3 2024-1.8%+0.2%+12.4%
Q2 2024+3.7%+2.5%-1.5%
Q1 2024+2.1%+3.8%+10.4%
Q4 2023-4.0%-5.3%-4.9%
Q3 2023+11.8%+16.9%+36.1%
Q2 2023-5.0%-5.3%-14.2%
Q1 2023-5.7%-4.8%-19.6%
Q4 2022+0.2%-1.4%-8.5%
Q3 2022+10.9%+11.6%+14.6%
Q2 2022+0.9%+1.8%-0.2%
Q1 2022-0.5%+0.1%+4.9%
Q4 2021-2.4%-1.7%-2.3%
Q3 2021-1.9%-0.3%+2.5%
Q2 2021+0.2%+0.1%-1.1%
Q1 2021+4.0%+3.3%+6.6%
Q4 2020-0.5%+0.4%+7.8%
Q3 2020+6.0%+4.0%+10.5%
Q2 2020+2.1%+2.0%+1.1%
Q1 2020+9.1%+16.8%+5.4%
Q4 2019-1.8%-2.4%-9.9%
Q3 2019+1.2%+1.6%+6.6%
Q2 2019-2.0%+0.1%-2.6%
Q1 2019-0.6%+1.8%-0.3%
Q4 2018-0.6%+2.2%+11.1%
Q3 2018+0.1%-0.8%-0.7%
Q2 2018+1.4%+2.6%+3.4%
Q1 2018+4.2%+3.0%+8.3%
Q4 2017-2.4%-1.2%-3.4%
Q3 2017-0.7%+5.3%+1.1%
Q2 2017+2.5%+4.0%+1.6%
Q1 2017-0.4%+4.6%-4.2%
Q4 2016-0.5%+1.9%-1.9%
Q3 2016-1.8%-0.4%+19.2%
Q2 2016-0.3%+2.1%+1.4%
Q1 2016+3.3%
Q4 2015+0.8%
Q3 2015-2.1%
Q2 2015+3.1%
Q1 2015-0.8%
Q4 2014+2.0%
Q3 2014+0.8%
Q2 2014+0.5%
Q1 2014-0.1%
Q4 2013+2.7%
Q3 2013+0.9%
Q2 2013+0.4%
Q1 2013-0.3%
Q4 2012-0.3%
Q3 2012-0.8%
Q2 2012+0.1%
Q1 2011+0.4%
Q1 2012+0.4%
Q4 2009-2.6%
Q4 2011-2.6%
Q3 2010+3.2%
Q3 2011+3.2%
Q4 2010+2.5%
Q2 2010+2.5%
Q2 2011+2.5%
Q1 2010+4.7%

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