NASDAQ$AROW

Arrow Financial Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Arrow Financial reported a decrease in net income and EPS compared to the same period last year, while achieving record loan balances and maintaining strong credit, capital, and liquidity positions.

Arrow Financial Corporation reported a net income of $7.7 million, with earnings per share of $0.46 for Q4 2023, compared to $12.1 million and $0.71 per share for the same period in 2022. The company achieved record loan balances and maintained strong credit, capital, and liquidity positions. The Board of Directors declared a quarterly cash dividend of $0.27 per share.

  • Net income was $7.7 million, or $0.46 per share, down from $12.1 million, or $0.71 per share, in Q4 2022.
  • Loans reached a record of $3.2 billion, an increase of $68 million during the fourth quarter.
  • Net interest margin was 2.53% for the quarter.
  • The company sold all Visa Class B shares for a pre-tax gain of $9.3 million.

Headline financials

Total Revenue

$33.1M

Previous: $37.7M-12.3%
EPS (adj)

$0.46

Previous: $0.71-35.2%
Capital Expenditures

$607K

Previous: $3.34M-81.8%
Free Cash Flow

-$16.9M

Previous: $8.17M-307.3%
Net Income

$7.72M

Previous: $12.1M-36.1%
Operating Income

$9.38M

No prior period
Stock-Based Comp

$88K

Previous: -$26K+438.5%

Revenue & EPS history

Arrow Financial · Revenue · Quarterly

$33.1M

Q4 2023-12.3%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Arrow Financial's balance sheet transactions are expected to improve profitability and asset-liability management. The reinvestment of proceeds from the sale of Visa Class B shares and repositioning of the investment portfolio is projected to improve annual interest income.

Tailwinds

  • Balance sheet transactions are expected to improve profitability.
  • Asset-liability management position is expected to improve.
  • Reinvestment of proceeds is projected to improve annual interest income.
  • Annual interest income run-rate improvement of over $3 million in pre-tax earnings.
  • Maintaining strong capital positions.

Headwinds

  • Challenging year due to decrease in net interest income.
  • Increase of non-interest expense.
  • Deposits have continued to migrate to higher cost products
  • Competitive rate pricing creates pressure
  • Nonperforming assets increased primarily due to one large loan relationship

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 2023

Historical avgQ4 2023

+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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