NASDAQ$AROW

Arrow Financial Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported $13.3 million in net income for Q2 2021, driven by strong profitability ratios and revenue growth as COVID-19 recovery continued.

Arrow Financial Corporation reported a strong second quarter in 2021, with net income of $13.3 million, a 15.1% increase in revenue compared to the prior year, and significant progress in the forgiveness of PPP loans. The company is focused on optimizing digital and physical delivery channels to meet evolving customer needs as pandemic restrictions ease.

  • Key profitability ratios were strong in the second quarter with return on average assets (ROA) of 1.38% and return on average equity (ROE) of 15.21%.
  • Second-quarter revenue increased $4.8 million, or 15.1%, over the prior year comparative quarter.
  • Over $67 million of Small Business Administration Paycheck Protection Program (PPP) loans were forgiven in the second quarter of 2021.
  • Net income was $13.3 million and diluted earnings per share (EPS) were $0.85 for the second quarter.

Headline financials

Total Revenue

$36.8M

Previous: $32M+15.1%
EPS (adj)

$0.81

Previous: $0.57+42.1%
Net Interest Margin

3.1%

Previous: 3.0%+1.0%
Return on Avg Assets

1.4%

No prior period
Return on Avg Equity

15.2%

No prior period
Efficiency Ratio

51.5%

Previous: 53.1%-2.9%
CET1 Capital Ratio

13.8%

No prior period
Total Risk-Based Capital Ratio

15.8%

Previous: 15.1%+4.5%
Net Charge-Offs Ratio

0.0%

No prior period
Capital Expenditures

-$2.4M

Previous: -$2.04M-17.8%
Free Cash Flow

$10.9M

Previous: $7.12M+52.8%
Net Income

$13.3M

Previous: $9.16M+45.0%
Operating Income

$30.1M

Previous: $22.3M+34.9%
Gross Profit

$36.6M

Previous: $29M+26.3%
Cash & Equivalents

$478M

Previous: $253M+88.8%
Total Assets

$3.9B

Previous: $3.55B+9.8%
Stock-Based Comp

$103K

Previous: $106K-2.8%

Revenue & EPS history

Arrow Financial · Revenue · Quarterly

$36.8M

Q2 2021+15.1%vs Q2 2020
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Arrow is focused on continued optimization of digital and physical delivery channels to meet changing customer needs.

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 Q2 2021

Historical avgQ2 2021

+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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