GLENS FALLS, N.Y., Jan. 20, 2017 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS(®) - AROW) announced operating results for the three- and 12-month periods ended December 31, 2016. For the year ended December 31, 2016, net income was a record $26.5 million, up 7.6% over net income of $24.7 million for 2015. Diluted EPS was a record $1.97 up 6.5% from $1.85 in 2015. Return on average equity (ROE) and return on average assets (ROA) were 11.79% and 1.06%, respectively, for the year, as compared to 11.86% and 1.05%, respectively, for 2015. Net income for the fourth quarter of 2016 was $6.6 million, an increase of $31 thousand, or 0.5%, from the fourth quarter of 2015. Diluted EPS of $0.49 for the quarter was unchanged from the comparable 2015 quarter.
Arrow President and CEO Tom Murphy stated, "Arrow's excellent results for 2016 demonstrates the strength of our Company and its commitment to community banking. We grew our loan portfolio 11.4% last year to a new record high, driven in large part by the consumer lending division. We also reported records for net income, total equity and assets under trust administration and investment management at year-end. I thank the entire team for their hard work to deliver value to our customers, communities and shareholders."
The following list expands on our fourth-quarter and year-to-date results:
Net Interest Income: Our net interest income, on a tax-equivalent basis (a non-GAAP financial measure), increased by $1.1 million, or 6.0%, in the fourth quarter of 2016, as compared to the fourth quarter of 2015, due to a similar increase in the level of our interest-earning assets between the periods and our continued repositioning of our asset portfolio in favor of loans versus investment securities. Our tax-equivalent net interest margin (NIM), also a non-GAAP measure, was 3.17% for the fourth quarter of 2016, up slightly from 3.15% for the fourth quarter of 2015. While our continued loan growth has been the primary driver for maintaining a stable NIM for the past three years, our increased ratio of non-interest-bearing demand deposits to total deposits has helped limit the increase in our cost of funds.
Loan Growth: At December 31, 2016, our loan portfolio reached a record high of $1.8 billion, up $179.3 million, or 11.4%, from the prior-year level. We experienced growth in all three of our major segments: commercial, consumer and residential real estate. This represents our third consecutive year of double-digit loan growth.
Consumer loans, primarily indirect automobile loans, led the way with 15.7% growth during 2016 to $537.4 million. We maintain an extensive network of automobile dealer relationships throughout Upstate New York and Vermont. Indirect loan originations have increased significantly over the past two years and the average maturities of these originations have continued to rise slowly. In the most recent quarters, average yields on indirect originations have slowly begun to increase. Residential real estate loans were up $57.2 million, or 9.2%, at year-end compared to the prior year-end. The outstanding balance at December 31, 2016, of $679.1 million represented 38.7% of the loan portfolio. During 2016, we originated $153.6 million of residential real estate loans, up 6.6% from approximately $144.2 million million of originations in 2015. With the increase in longer-term interest rates, our gain on the sale of residential real estate loan originations declined in the fourth quarter of 2016 compared to the same quarter of 2015. The decline was attributable to both a decrease in the amount of loans sold and a narrowing of the premium received on these sales. Commercial and commercial real estate loan growth remained strong throughout 2016 with the portfolio increasing by $49.3 million, or 10.1%, to $536.8 million.
Deposit Growth: At December 31, 2016, our deposit balances reached $2.1 billion, up by $86.1 million, or 4.2%, from the prior-year level. Noninterest-bearing deposits grew by $28.5 million or 8.0% during 2016, and represented 18.3% of total deposits at year-end, up from the prior-year level of 17.7%. This increase positively impacted our net interest margin.
Assets Under Management and Related Noninterest Income: Assets under trust administration and investment management at December 31, 2016, rose to a record $1.3 billion, an increase of 5.6%, from the December 31, 2015, balance of $1.2 billion. The growth in balances was generally attributable to a net gain in market value of assets under management as well as the addition of new accounts. For the 2016 fourth quarter, income from fiduciary activities was $1.9 million, up 4% from the same period in 2015.
Insurance Agency Operations: Insurance income for the year ended December 31, 2016, declined by $300 thousand, or 3.3%, to $8.67 million from $8.97 million in 2015. This decrease was primarily attributable to our October 2015 sale to an unrelated third party of one of our wholly owned insurance subsidiaries that engaged in offering insurance services to out-of-market amateur sports management associations.
Securities Transactions: Late in the fourth quarter, yields on fixed income securities increased significantly causing the U.S. Treasury yield curve to steepen. As part of ongoing balance sheet management, we executed security transactions where we sold U.S. Agency debentures and U.S. Agency issued mortgage-backed securities with short maturities from our available-for-sale portfolio, realizing a $166 thousand loss on sale. Utilizing the sales proceeds, we purchased U.S. Treasury Notes and U.S. Agency issued mortgage-backed securities in the three to five year maturity range, which were allocated to the available-for-sale portfolio.
Asset Quality: Asset quality remained strong, as measured by our low levels of nonperforming assets and charge-offs. Net loan losses for the fourth quarter of 2016, expressed as an annualized percentage of average loans outstanding, were 0.10%. Our net loan losses for the full year 2016 were 0.06% of average loans outstanding, unchanged from the 2015 ratio. Nonperforming assets of $7.2 million at December 31, 2016, represented only 0.28% of period-end assets, down from the 2015 year-end ratio of 0.36%.
Our allowance for loan losses was $17.0 million at December 31, 2016, which represented 0.97% of loans outstanding, a decrease of five basis points from our ratio of 1.02% at year-end 2015. This decrease was primarily driven by continued strong asset quality indicators. However, the year-over-year provision for loan losses increased by 50.9% primarily driven by strong double-digit loan growth.
Cash and Stock Dividends: The cash dividend of $0.25 per share paid to our shareholders in the 2016 fourth quarter represented a 3% increase in the cash dividend paid by us in the 2015 quarter, as adjusted for (and reflecting) the 3% stock dividend distributed by us on September 29, 2016. This was our 23(rd) consecutive year of increased cash dividends. All prior-period per share data have been adjusted to reflect our September 29, 2016 stock dividend.
Capital: Total shareholders' equity grew to a record of $232.9 million at period-end, an increase of $18.9 million, or 8.8%, above the year-end 2015 balance. This rate of increase exceeded our rate of growth in total assets for the year. Arrow's regulatory capital ratios remained strong in 2016. At December 31, 2016, the company's Common Equity Tier 1 Capital Ratio was 12.97% and total risk-based capital ratio was 15.15%. The capital ratios of the company and both its subsidiary banks continued to significantly exceed the "well capitalized" regulatory standards, the highest category.
Peer Group: Many of our key operating ratios have consistently compared favorably to our peer group, which we define as all U.S. bank holding companies having $1.0 to $3.0 billion in total assets, as identified in the Federal Reserve Bank's "Bank Holding Company Performance Report" (FRB Report). The most current peer data available in the FRB Report is as of and for the period ended September 30, 2016. For that period, our return on average equity (ROE) was 11.91%, as compared to 8.54% for our peer group.
As of December 31, 2016, our ratio of loans 90 days past due and accruing plus nonaccrual loans to total loans was 0.31%, as compared to the 0.83% ratio achieved by our peer group as of September 30, 2016 (as identified in the most recent FRB Report), while our net loan losses of 0.06% for the year ended December 31, 2016, were slightly below the peer result for the period ended September 30, 2016 (as identified in the most recent FRB Report), of 0.07% (annualized).
Industry Recognition: In 2016 Arrow received various industry recognitions. Arrow was named one of "America's 50 Most Trustworthy Financial Companies" by Forbes for the fifth consecutive year. Arrow appeared in Bank Director Magazine's annual "Bank Performance Scorecard" as one of the top-performing banks in the country. And Arrow received the Raymond James Community Bankers Cup for its "superior financial performance."
Finally, both of the Company's two banking subsidiaries also maintained their 5-Star Superior Bank Rating by BauerFinancial, Inc. Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company have each earned this designation for the past 39 and 31 quarters, respectively.
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Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc.; two property and casualty insurance agencies: Upstate Agency, LLC, and McPhillips Insurance Agency, a division of Glens Falls National Insurance Agencies, LLC; and Capital Financial Group, Inc., an insurance agency specializing in the sale and servicing of group health plans.
In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income - tax equivalent, and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Select Quarterly Information."
The information contained in this news release may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. The Company undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2015, and our other filings with the Securities and Exchange Commission.
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts - Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 ---- ---- ---- ---- INTEREST AND DIVIDEND INCOME Interest and Fees on Loans $16,258 $14,903 $62,823 $56,856 Interest on Deposits at Banks 52 34 152 94 Interest and Dividends on Investment Securities: Fully Taxable 1,940 2,107 7,934 8,043 Exempt from Federal Taxes 1,520 1,466 6,006 5,745 ----- ----- ----- ----- Total Interest and Dividend Income 19,770 18,510 76,915 70,738 ------ ------ ------ ------ INTEREST EXPENSE Interest-Bearing Checking Accounts 339 316 1,280 1,276 Savings Deposits 255 203 932 741 Time Deposits of $100,000 or More 140 89 453 356 Other Time Deposits 161 176 658 742 Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 9 5 33 20 Federal Home Loan Bank Advances 327 293 1,340 1,097 Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 173 149 660 581 --- --- --- --- Total Interest Expense 1,404 1,231 5,356 4,813 ----- ----- ----- ----- NET INTEREST INCOME 18,366 17,279 71,559 65,925 Provision for Loan Losses 483 465 2,033 1,347 --- --- ----- ----- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 17,883 16,814 69,526 64,578 ------ ------ ------ ------ NONINTEREST INCOME Income From Fiduciary Activities 1,929 1,855 7,783 7,762 Fees for Other Services to Customers 2,325 2,316 9,469 9,220 Net (Loss) Gain on Securities Transactions (166) 23 (22) 129 Insurance Commissions 2,200 2,118 8,668 8,967 Net Gain on Sales of Loans 172 204 821 692 Other Operating Income 188 171 1,113 1,354 --- --- ----- ----- Total Noninterest Income 6,648 6,687 27,832 28,124 ----- ----- ------ ------ NONINTEREST EXPENSE Salaries and Employee Benefits 9,107 8,487 34,330 33,064 Occupancy Expenses, Net 2,179 2,161 9,402 9,267 FDIC Assessments 232 313 1,076 1,186 Other Operating Expense 3,754 3,281 14,801 13,913 ----- ----- ------ ------ Total Noninterest Expense 15,272 14,242 59,609 57,430 ------ ------ ------ ------ INCOME BEFORE PROVISION FOR INCOME TAXES 9,259 9,259 37,749 35,272 Provision for Income Taxes 2,659 2,690 11,215 10,610 ----- ----- ------ ------ NET INCOME $6,600 $6,569 $26,534 $24,662 ====== ====== ======= ======= Average Shares Outstanding(1): Basic 13,441 13,306 13,391 13,281 Diluted 13,565 13,368 13,476 13,330 Per Common Share: Basic Earnings $0.49 $0.49 $1.98 $1.86 Diluted Earnings 0.49 0.49 1.97 1.85 (1) Share and per share data have been restated for the September 29, 2016, 3% stock dividend.
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts - Unaudited) December 31, December 31, 2016 2015 ---- ---- ASSETS Cash and Due From Banks $43,024 $34,816 Interest-Bearing Deposits at Banks 14,331 16,252 Investment Securities: Available-for-Sale 346,996 402,309 Held-to-Maturity (Approximate Fair Value of $343,751 at December 31, 2016, and $325,930 at December 31, 2015) 345,427 320,611 Other Investments 10,912 8,839 Loans 1,753,268 1,573,952 Allowance for Loan Losses (17,012) (16,038) Net Loans 1,736,256 1,557,914 --------- --------- Premises and Equipment, Net 26,938 27,440 Goodwill 21,873 21,873 Other Intangible Assets, Net 2,696 3,107 Other Assets 56,789 53,027 Total Assets $2,605,242 $2,446,188 ========== ========== LIABILITIES Noninterest-Bearing Deposits $387,280 $358,751 Interest-Bearing Checking Accounts 877,988 887,317 Savings Deposits 651,965 594,538 Time Deposits of $100,000 or More 74,778 59,792 Other Time Deposits 124,535 130,025 ------- ------- Total Deposits 2,116,546 2,030,423 --------- --------- Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 35,836 23,173 Federal Home Loan Bank Overnight Advances 123,000 82,000 Federal Home Loan Bank Term Advances 55,000 55,000 Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 Other Liabilities 22,008 21,621 ------ ------ Total Liabilities 2,372,390 2,232,217 --------- --------- STOCKHOLDERS' EQUITY Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized Common Stock, $1 Par Value; 20,000,000 Shares Authorized (17,943,201 Shares Issued at December 31, 2016, and 17,420,776 Shares Issued at December 31, 2015) 17,943 17,421 Additional Paid-in Capital 270,880 250,680 Retained Earnings 28,644 32,139 Unallocated ESOP Shares (19,466 Shares at December 31, 2016, and 55,275 Shares at December 31, 2015) (400) (1,100) Accumulated Other Comprehensive Loss (6,834) (7,972) Treasury Stock, at Cost (4,441,093 Shares at December 31, 2016, and 4,426,072 Shares at December 31, 2015) (77,381) (77,197) ------- ------- Total Stockholders' Equity 232,852 213,971 Total Liabilities and Stockholders' Equity $2,605,242 $2,446,188 ========== ==========
Arrow Financial Corporation Selected Quarterly Information (Dollars In Thousands, Except Per Share Amounts - Unaudited) Quarter Ended 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 ------------- ---------- --------- --------- --------- ---------- Net Income $6,600 $6,738 $6,647 $6,549 $6,569 Transactions Recorded in Net Income (Net of Tax): --------------------------------------------- Net (Loss) Gain on Securities Transactions (101) - 88 - 14 Share and Per Share Data:(1) --------------------------- Period End Shares Outstanding 13,483 13,426 13,388 13,361 13,328 Basic Average Shares Outstanding 13,441 13,407 13,372 13,343 13,306 Diluted Average Shares Outstanding 13,565 13,497 13,429 13,379 13,368 Basic Earnings Per Share $0.49 $0.50 $0.50 $0.49 $0.49 Diluted Earnings Per Share 0.49 0.50 0.49 0.49 0.49 Cash Dividend Per Share 0.250 0.243 0.243 0.243 0.243 Selected Quarterly Average Balances: ------------------------------------ Interest-Bearing Deposits at Banks $34,731 $21,635 $22,195 $21,166 $44,603 Investment Securities 684,906 696,712 701,526 716,523 716,947 Loans 1,726,738 1,680,850 1,649,401 1,595,018 1,556,234 Deposits 2,160,156 2,063,832 2,082,449 2,069,964 2,075,825 Other Borrowed Funds 157,044 209,946 165,853 143,274 127,471 Shareholders' Equity 230,198 228,048 223,234 218,307 213,219 Total Assets 2,572,425 2,528,124 2,496,795 2,456,431 2,442,964 Return on Average Assets 1.02% 1.06% 1.07% 1.07% 1.07% Return on Average Equity 11.41% 11.75% 11.98% 12.07% 12.22% Return on Tangible Equity(2) 12.77% 13.18% 13.47% 13.62% 13.86% Average Earning Assets $2,446,375 $2,399,197 $2,373,122 $2,332,707 $2,317,784 Average Paying Liabilities 1,933,974 1,892,583 1,891,017 1,867,455 1,854,549 Interest Income, Tax- Equivalent 20,880 20,403 20,343 19,745 19,619 Interest Expense 1,404 1,405 1,284 1,263 1,231 Net Interest Income, Tax- Equivalent 19,476 18,998 19,059 18,482 18,388 Tax-Equivalent Adjustment 1,110 1,121 1,106 1,119 1,109 Net Interest Margin 3 3.17% 3.15% 3.23% 3.19% 3.15% Efficiency Ratio Calculation: ----------------------------- Noninterest Expense $15,272 $15,082 $14,884 $14,370 $14,242 Less: Intangible Asset Amortization 73 74 74 75 78 Net Noninterest Expense $15,199 $15,008 $14,810 $14,295 $14,164 ------- ------- ------- ------- ------- Net Interest Income, Tax- Equivalent $19,475 $18,998 $19,059 $18,482 $18,388 Noninterest Income 6,648 7,114 7,194 6,875 6,687 Less: Net Securities (Losses) Gains (166) - 144 - 23 ---- --- --- --- --- Net Gross Income $26,289 $26,112 $26,109 $25,357 $25,052 ------- ------- ------- ------- ------- Efficiency Ratio 57.82% 57.48% 56.72% 56.37% 56.54% Period-End Capital Information: ------------------------------- Total Stockholders' Equity (i.e. Book Value) $232,852 $229,208 $225,373 $220,703 $213,971 Book Value per Share 17.27 17.07 16.83 16.52 16.05 Intangible Assets 24,569 24,675 24,758 24,872 24,980 Tangible Book Value per Share (2) 15.45 15.23 14.98 14.66 14.18 Capital Ratios: --------------- Tier 1 Leverage Ratio 9.47% 9.44% 9.37% 9.36% 9.25% Common Equity Tier 1 Capital Ratio 12.97% 12.80% 12.74% 12.84% 12.82% Tier 1 Risk-Based Capital Ratio 14.14% 13.98% 13.95% 14.08% 14.08% Total Risk-Based Capital Ratio 15.15% 14.99% 14.96% 15.09% 15.09% Assets Under Trust Administration and Investment Management $1,301,408 $1,284,051 $1,250,770 $1,231,237 $1,232,890 ---------------------- (1) Share and Per Share Data have been restated for the September 29, 2016, 3% stock dividend. (2) Tangible Book Value and Tangible Equity exclude intangible assets from total equity. These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance. (3) Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance.
Arrow Financial Corporation Selected Quarterly Information - Continued (Dollars In Thousands, Except Per Share Amounts - Unaudited) Footnotes: 1. Share and Per Share Data have been restated for the September 29, 2016 3% stock dividend. 2. Tangible Book Value, Tangible Equity, and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures which we believe provide investors with information that is useful in understanding our financial performance. 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 ---------- --------- --------- --------- ---------- Total Stockholders' Equity (GAAP) $232,852 $229,208 $225,373 $220,703 $213,971 Less: Goodwill and Other Intangible assets, net 24,569 24,675 24,758 24,872 24,980 ------ Tangible Equity (Non-GAAP) $208,283 $204,533 $200,615 $195,831 $188,991 === Period End Shares Outstanding 13,483 13,426 13,388 13,361 13,328 Tangible Book Value per Share (Non- GAAP) $15.45 $15.23 $14.98 $14.66 $14.18 Net Income 6,600 6,738 6,647 6,549 6,569 Return on Tangible Equity (Net Income/ Tangible Equity -Annualized) 12.77% 13.18% 13.47% 13.62% 13.86% 3. Net Interest Margin is the ratio of our annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure which we believe provides investors with information that is useful in understanding our financial performance. 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 ---------- --------- --------- --------- ---------- Interest Income (GAAP) $19,770 $19,282 $19,237 $18,626 $18,510 Add: Tax Equivalent Adjustment (Non- GAAP) 1,110 1,121 1,106 1,119 1,109 ----- Interest Income - Tax Equivalent (Non-GAAP) $20,880 $20,403 $20,343 $19,745 $19,619 === Net Interest Income (GAAP) $18,366 $17,877 $17,953 $17,363 $17,279 Add: Tax-Equivalent adjustment (Non- GAAP) 1,110 1,121 1,106 1,119 1,109 ----- Net Interest Income - Tax Equivalent (Non-GAAP) $19,476 $18,998 $19,059 $18,482 $18,388 === Average Earning Assets 2,446,375 2,399,197 2,373,122 2,332,707 2,317,784 Net Interest Margin (Non-GAAP)* 3.17% 3.15% 3.23% 3.19% 3.15% 4. Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. We believe the efficiency ratio provides investors with information that is useful in understanding our financial performance. We define our efficiency ratio as the ratio of our noninterest expense to our net gross income (which equals our tax-equivalent net interest income plus noninterest income, as adjusted). 5. For the current quarter, all of the regulatory capital ratios in the table above, as well as the Total Risk- Weighted Assets and Common Equity Tier 1 Capital amounts listed in the table below, are estimates based on, and calculated in accordance with bank regulatory capital rules. All prior quarters reflect actual results. The December 31, 2016 CET1 ratio listed in the tables (i.e., 12.92%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%). 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 ---------- --------- --------- --------- ---------- Total Risk Weighted Assets 1,707,829 1,690,646 1,662,381 1,617,957 1,590,129 Common Equity Tier 1 Capital 232,852 216,382 211,801 207,777 203,848 Common Equity Tier 1 Ratio 12.97% 12.80% 12.74% 12.84% 12.82% * Quarterly ratios have been annualized
Arrow Financial Corporation Consolidated Financial Information (Dollars in Thousands - Unaudited) Quarter Ended: 12/31/2016 12/31/2015 -------------- ---------- ---------- Loan Portfolio Commercial Loans $105,155 $102,587 Commercial Real Estate Loans 431,646 384,939 ------- ------- Subtotal Commercial Loan Portfolio 536,801 487,526 Consumer Loans (Primarily Indirect Automobile Loans) 537,361 464,523 Residential Real Estate Loans 679,106 621,903 ------- ------- Total Loans $1,753,268 $1,573,952 ========== ========== Allowance for Loan Losses Allowance for Loan Losses, Beginning of Quarter $16,975 $15,774 Loans Charged-off (486) (271) Recoveries of Loans Previously Charged-off 40 70 --- --- Net Loans Charged-off (446) (201) Provision for Loan Losses 483 465 --- --- Allowance for Loan Losses, End of Quarter $17,012 $16,038 ======= ======= Nonperforming Assets Nonaccrual Loans $4,193 $6,433 Loans Past Due 90 or More Days and Accruing 1,201 187 Loans Restructured and in Compliance with Modified Terms 106 286 --- --- Total Nonperforming Loans 5,500 6,906 Repossessed Assets 101 140 Other Real Estate Owned 1,585 1,878 ----- ----- Total Nonperforming Assets $7,186 $8,924 ====== ====== Key Asset Quality Ratios Net Loans Charged-off to Average Loans, Quarter-to-date Annualized 0.10% 0.05% Provision for Loan Losses to Average Loans, Quarter-to-date Annualized 0.11% 0.12% Allowance for Loan Losses to Period-End Loans 0.97% 1.02% Allowance for Loan Losses to Period-End Nonperforming Loans 309.31% 232.24% Nonperforming Loans to Period-End Loans 0.31% 0.44% Nonperforming Assets to Period-End Assets 0.28% 0.36% Twelve-Month Period Ended: -------------------------- Allowance for Loan Losses Allowance for Loan Losses, Beginning of Year $16,038 $15,570 Loans Charged-off (1,270) (1,106) Recoveries of Loans Previously Charged-off 211 227 --- --- Net Loans Charged-off (1,059) (879) Provision for Loan Losses 2,033 1,347 ----- ----- Allowance for Loan Losses, End of Year $17,012 $16,038 ======= ======= Key Asset Quality Ratios Net Loans Charged-off to Average Loans 0.06% 0.06% Provision for Loan Losses to Average Loans 0.12% 0.09%
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SOURCE Arrow Financial Corporation