Revenue: As of FY2026 Q2, the actual value is USD 61.87 M.

EPS: As of FY2026 Q2, the actual value is USD 0.66, beating the estimate of USD 0.53.

EBIT: As of FY2026 Q2, the actual value is USD 13.9 M.

Net Income

Arrow Financial Corporation reported Net Income of $11.0 million for Q2 2026 and $24.4 million YTD 2026, which included merger-related expenses of $1.0 million for Q2 2026 and $1.8 million YTD 2026, respectively.

Operating Expenses

Operating Expenses were $26.5 million in Q2 2026, compared to $26.1 million in Q1 2026. YTD 2026 Operating Expenses totaled $52.5 million, up from $50.0 million YTD 2025. Total Non-Interest Expense for Q2 2026 was $27.5 million, including $1.0 million in Merger Related Expenses. YTD 2026, total Non-Interest Expense was $54.3 million, which included $1.8 million in Non-Core Expenses.

Provision for Credit Losses

Provision for Credit Losses was $2.8 million in Q2 2026, a significant increase from $0.5 million in Q1 2026. YTD 2026, the provision was $3.4 million, down from $5.6 million YTD 2025. This included a $1.6 million specific reserve for a CRE credit bankruptcy in both Q2 and YTD 2026.

Balance Sheet Highlights (as of June 30, 2026)

• Total Assets were $4,482.4 million, a decrease from $4,522.0 million in Q1 2026 but an increase from $4,414.7 million in Q2 2025.
• Loans Receivable, net, grew to $3,460.4 million from $3,404.9 million in Q1 2026 and $3,390.6 million in Q2 2025.
• Total Deposits were $3,655.2 million, down from $4,013.9 million in Q1 2026 and $3,929.3 million in Q2 2025.
• Total Borrowings increased substantially to $330.2 million from $29.2 million in Q1 2026.
• Stockholders’ Equity rose to $446.3 million from $440.1 million in Q1 2026 and $408.5 million in Q2 2025.

Other Key Financial Metrics

• Net Interest Income: $35.9 million for Q2 2026 and $72.0 million YTD 2026.
• Non-Interest Income: $8.3 million for Q2 2026 and $16.9 million YTD 2026.
• Net Interest Margin (FTE): 3.43% for Q2 2026, down from 3.48% in Q1 2026; YTD 2026 FTE NIM was 3.46%.
• Return on Average Assets (ROAA): 0.99% for Q2 2026 (1.06% excluding merger-related expenses) and 1.11% YTD 2026 (1.17% excluding merger-related expenses).
• Return on Average Equity (ROAE): 9.86% for Q2 2026 (10.59% excluding merger-related expenses) and 11.14% YTD 2026 (11.79% excluding merger-related expenses).
• Tangible Book Value per Share (TBV): $25.44 as of June 30, 2026.
• Tangible Common Equity (TCE): 9.44% as of June 30, 2026.
• Efficiency Ratio: YTD 2026 was 60.95%, and 59.8% excluding merger-related expenses for Q2 2026.
• Loan Growth: Annualized loan growth was 6.7% ($57.6 million) for Q2 2026 and 2.6% ($43.5 million) YTD.
• Credit Quality: Annualized net charge-offs were 8bps for Q2 2026 and 9bps YTD. Non-Performing Loans (NPLs) totaled $8.3 million (0.24% of total loans), including a $3.8 million NPL for a new CRE loan bankruptcy. Allowance for Credit Loss was 1.03%.
• Loan-To-Deposit Ratio: 95.66% YTD June 2026.
• Wholesale Funding Ratio: 6.92% YTD June 2026.

M&A Update (Acquisition of Adirondack Bancorp, Inc.)

The acquisition of Adirondack Bancorp, Inc. closed on July 1, 2026, adding approximately $1 billion in assets and a high-quality, low-cost deposit base. The combined pro-forma assets are $5.4 billion, deposits $4.8 billion, and loans $4.1 billion, with a Tangible Common Equity to Total Assets (TCE/TA) of approximately 8.0% at close. The transaction is expected to generate substantial EPS accretion and a TBV per share earn-back period of 2.9 years, with a 20% internal rate of return.

Outlook / Guidance

Arrow Financial Corporation anticipates full-year loan growth to be in the mid-single digits, excluding the impact of the acquisition. The “Legacy” Arrow Net Interest Margin (NIM) is expected to peak just above 3.50% in the near-term without additional rate cuts. NIM expansion is projected for the second half of 2026 due to the Adirondack Bancorp, Inc. merger, with system conversions related to the merger expected in Q4 2026.