Arrow Financial (AROW) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $14.0M ($0.85 EPS) in 4Q25 and $44.0M ($2.65 EPS) for FY2025, driven by NIM expansion and loan growth.

• Tangible book value per share rose 10.3% year-over-year to $24.71.

• Board declared a 1Q26 dividend of $0.30/share, a 3.4% increase from the prior quarter, marking 49 consecutive quarters of dividends.

• Completed unification and system integration of two subsidiary banks in 2025, supporting strategic growth.

• Ended 2025 with strong credit metrics and well-positioned for 2026.

Financial highlights

• 4Q25 EPS: $0.85; FY2025 EPS: $2.65.

• 4Q25 net income: $14.0M; FY2025 net income: $44.0M, up from $29.7M in 2024.

• 4Q25 FTE NIM: 3.25%; FY2025 FTE NIM: 3.19%, up from 2.74% in 2024.

• Tangible book value per share: $24.71.

• Net charge-offs: 0.19% for FY2025; NPLs at $8.5M (0.24% of total loans); nonperforming assets at 0.20% of year-end assets.

Outlook and guidance

• NIM expansion expected to continue in 2026, especially if FRB rate cuts occur.

• Entering 2026 with significant momentum and a focus on continued EPS growth and strategic execution.

• Favorable deposit mix trends and ongoing pricing discipline expected to support margins.