The sequential decline in reported EPS is noise from one-time merger costs; core operating trends (NIM expansion, credit quality, TBV growth) remain strong. Monitor the Adirondack Bancorp deal closing expected in Q3 2026 and integration execution, which will add ~$950M in assets and is expected to be accretive to EPS in 2027.
Price Chart
Executive Summary
Arrow Financial Corp reported Q1 2026 net income of $13.5M ($0.82 EPS), down sequentially from $14.0M ($0.85 EPS) in Q4 2025 due to $0.8M in merger-related expenses tied to the pending Adirondack Bancorp acquisition. Core operating EPS was a record $0.85, driven by strong net interest margin expansion to 3.48% (FTE) from 3.25% in Q4 2025 and continued credit improvement with non-performing loans falling to 0.13% of total loans. The company also declared a $0.30 quarterly dividend.
Key Financial Metrics
Key Facts
- Q1 2026 net income of $13.5M ($0.82 diluted EPS) vs $14.0M ($0.85) in Q4 2025
- Core EPS excluding $0.8M merger expenses was $0.85, a record operating result
- Net interest margin (FTE) expanded to 3.48% from 3.25% in Q4 2025
- Net interest income rose 2.8% sequentially to $36.1M
- Non-performing loans fell to $4.4M (0.13% of loans) from $8.5M (0.24%) in Q4 2025
- Quarterly dividend declared at $0.30 per share, payable May 26, 2026
- Pending acquisition of Adirondack Bancorp (~$950M in assets) expected to close early Q3 2026
- Tangible book value per share increased to $25.09 from $24.71 in Q4 2025
- Common Equity Tier 1 ratio improved to 13.30% from 13.01% in Q4 2025
Financial Impact
Q1 2026 net income of $13.5M; core EPS of $0.85; NIM expanded 23bps to 3.48%
Risk Factors
- Pending Adirondack Bancorp acquisition integration risk and regulatory approval timeline
- Net interest margin expansion may slow in 2H26 absent Fed rate cuts
- Loan growth was negative in Q1 due to weather; rebound expected in Q2 but not guaranteed
- AOCI losses of $4.8M from rising rates could pressure capital ratios if rates continue to rise
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000717538-26-000050 |
| Document: q12026investorpresentati.htm | 0000717538-26-000050 |
| Document: arow-20260429.htm | 0000717538-26-000050 |
| Document: 0000717538-26-000050-index-headers.html | 0000717538-26-000050 |
| Document: 0000717538-26-000050-index.html | 0000717538-26-000050 |
| Document: 0000717538-26-000050.txt | 0000717538-26-000050 |
| 8-K Data (Synthetic) | 0000717538-26-000050 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 8-K | $39.07 $38.12 | ▼ −2.43% | ▼ −1.93% | $37.79 (−3.28%) |
Jul 23, 2026 10w ago | 8-K | $39.14 $39.94 | ▼ −2.04% | ▼ −1.57% | $37.79 (+3.45%) |
Jul 1, 2026 13w ago | 8-K | $42.07 $40.82 | ▼ −2.97% | ▼ −3.23% | $37.79 (−10.17%) |
Jun 3, 2026 17w ago | 8-K | $35.78 $38.07 | ▲ +6.40% | ▲ +10.22% | $37.79 (+5.62%) |
May 8, 2026 21w ago | EFFECT | $36.84 $35.73 | ▼ −3.02% | ▼ −4.49% | $37.79 (+2.57%) |
Apr 30, 2026 22w ago | 8-K | $36.55 $36.97 | ▲ +1.16% | ▼ −0.57% | $37.79 (+3.40%) |
Apr 23, 2026 23w ago | DEFA14A | $36.24 $36.06 | ▼ −0.49% | ▼ −1.97% | $37.79 (+4.28%) |
Mar 27, 2026 27w ago | 10-K/A | $32.75 $34.63 | ▲ +5.75% | ▲ +1.89% | $37.79 (+15.40%) |
Feb 26, 2026 31w ago | 8-K | $34.02 $32.99 | ▼ −3.02% | ▼ −1.89% | $37.79 (+11.09%) |
US Market Status
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