NASDAQ$AROW

Arrow Financial Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported net income of $12.1 million, an increase of 17.2% from the fourth quarter of 2021.

Arrow Financial Corporation reported a net income of $12.1 million for Q4 2022, an increase of 17.2% compared to Q4 2021. Diluted EPS was $0.73 for the fourth quarter of 2022, an increase of 17.7% from $0.62 from the comparable 2021 quarter.

  • Net income for the fourth quarter of 2022 was $12.1 million, an increase of 17.2% from the fourth quarter of 2021.
  • Diluted EPS was $0.73 for the fourth quarter of 2022, an increase of 17.7% from $0.62 from the comparable 2021 quarter.
  • Loan growth for the fourth quarter was $58.4 million.
  • Deposits decreased in the fourth quarter by $296.7 million.

Headline financials

Total Revenue

$37.7M

Previous: $34.8M+8.5%
EPS (adj)

$0.71

Previous: $0.59+20.3%
Net Interest Margin

3.1%

Previous: 2.8%+11.2%
Efficiency Ratio

54.6%

Previous: 59.1%-7.5%
CET1 Capital Ratio

13.3%

Previous: 13.8%-3.3%
Tier 1 Risk-Based Capital Ratio

14.0%

No prior period
Total Risk-Based Capital Ratio

15.1%

Previous: 15.7%-3.7%
Capital Expenditures

$3.34M

Previous: $3.2M+4.4%
Free Cash Flow

$8.17M

Previous: $9.3M-12.2%
Net Income

$12.1M

Previous: $10.3M+17.2%
Cash & Equivalents

$64.7M

Previous: $458M-85.9%
Total Assets

$3.97B

Previous: $4.03B-1.5%
Stock-Based Comp

-$26K

Previous: -$28K+7.1%

Revenue & EPS history

Arrow Financial · Revenue · Quarterly

$37.7M

Q4 2022+8.5%vs Q4 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

With the economic headwinds anticipated for 2023, we will continue to focus on what we do best: organic growth, expense management, and deepening and growing relationships.

Tailwinds

  • Focus on organic growth.
  • Focus on expense management.
  • Focus on deepening customer relationships.
  • Focus on growing customer relationships.
  • Continue commitment to customers and the communities we serve.

Headwinds

  • Economic headwinds anticipated for 2023.
  • Non-municipal and municipal deposits decreased by $149.0 million and $147.7 million, respectively in the fourth quarter.
  • The decline is deposits was primarily the result of both increased consumer spending and pressure from competitive rate pricing.
  • Book value per share was down 4.9% from the prior-year level, primarily as a result of unrealized losses within the available-for-sale investment portfolio due to higher interest rates.
  • Asset quality remained solid at December 31, 2022.

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 Q4 2022

Historical avgQ4 2022

+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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