Arrow Financial (AROW) Q3 2026 earnings summary

Executive summary

• Q3 net income was $5.7M and diluted EPS was $0.31; core net income was $18.1M and core EPS was $0.97 excluding $15.6M of merger expenses.

• 9M net income was $30.1M versus $29.9M YoY; diluted EPS was $1.75 versus $1.80.

• The July 1 Adirondack Bancorp acquisition expanded loans and deposits, supporting NII, margin and fee-income growth.

Financial highlights

• Q3 NII was $48.7M, up 42.8% YoY and 35.6% QoQ; noninterest income was $11.4M versus $8.3M in Q2.

• Q3 noninterest expense rose 103.8% to $51.8M, including $15.6M of merger costs; the income tax provision was $1.2M versus $3.8M YoY.

• 9M NII rose to $120.8M from $98.0M YoY; noninterest income was $28.3M versus $24.2M.

• Sept. 30 assets were $5.55B, up $1.06B QoQ; deposits rose $1.08B to $4.74B and loans rose $643.1M to $4.10B.

• Assets were up 24.8% from year-end 2025; loans were $4.14B, up 20.0%, and deposits were $4.74B, up 20.3%.

Outlook and guidance

• 95% of expected acquisition cost savings targeted by 1Q27; core-system conversion was scheduled for Nov. 7–8, 2026.

• Acquisition-related interest-income accretion and expense amortization run rates were expected to continue into 2027.

• One branch closed in Q3, one was scheduled to close in Nov. 2026, and two more were under review for 1H27.

• Seasonal loan delinquency increases were expected in Q4.