Arrow Financial Corporation,(AROW) a leading financial institution, ha s released its consolidated financial statements for the second quarter of 2023. The company reported a net income of $6.05 million, driven by robust interest and dividend income amounting to $40.01 million. The total assets of the corporation reached $4.10 billion, reflecting its strong market presence and strategic financial management.**
Arrow Financial Corporation's consolidated balance sheet as of June 30, 2023, showcases the company's financial strength and diverse asset portfolio. The company's cash and due from banks stood at $33.80 million, reflecting steady liquidity. Furthermore, interest-bearing deposits at banks reached $139.80 million, indicating a significant increase compared to the previous quarter.
Investment securities, including those available-for-sale at fair value, held-to-maturity, and equity securities, collectively amounted to $543.71 million. The company holds a strategic mix of these securities to optimize returns while maintaining prudent risk levels. Loans remained a substantial asset, with a net value of $3.04 billion after accounting for the allowance for credit losses. This highlights Arrow Financial Corporation's active involvement in lending activities to support economic growth.
Other assets, including premises and equipment, goodwill, and intangible assets, contributed to a total asset value of $4.10 billion, demonstrating the company's diversified asset base.
LIABILITIES
Arrow Financial Corporation's liabilities reflect a balanced approach to funding its operations. Noninterest-bearing deposits totaled $759.50 million, while interest-bearing checking accounts amounted to $856.02 million. Savings deposits and time deposits over $250,000 reached $1.52 billion and $140.69 million, respectively. Total deposits amounted to $3.50 billion, indicating the company's strong customer base.
Borrowings and finance leases were used judiciously to meet funding requirements, amounting to $171.80 million and $5.09 million, respectively. Other liabilities and junior subordinated obligations issued to unconsolidated subsidiary trusts added to the overall liabilities.
STOCKHOLDERS' EQUITY
Arrow Financial Corporation's stockholders' equity reflects the financial health and investor confidence in the company. Common stock and additional paid-in capital remained stable at $21.42 million and $401.07 million, respectively. Retained earnings increased to $71.08 million, underlining the company's profitability.
Accumulated other comprehensive loss and treasury stock accounted for ($47.61) million and ($84.51) million, respectively. Overall, the stockholders' equity stood at $361.44 million, indicating the company's commitment to delivering value to its shareholders.
CONSOLIDATED STATEMENTS OF INCOME
Arrow Financial Corporation reported a net income of $6.05 million for the second quarter of 2023. This income was generated from interest and dividend income amounting to $40.01 million, reflecting the company's effective management of its investment and lending portfolios. The provision for credit losses was $948,000, indicating the company's proactive approach to managing potential credit risks.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
In addition to net income, Arrow Financial Corporation reported other comprehensive income (loss) of ($3.63) million for the second quarter of 2023. This figure represents the net of various factors, including net unrealized securities holding gain, net unrealized gain (loss) on cash flow hedge agreements, reclassification of net unrealized loss on cash flow hedge agreements, and amortization of net retirement plan actuarial gain and net retirement plan prior service cost.
Arrow Financial Corporation's cash flow activities for the six months ended June 30, 2023, reflect the company's strategic financial management. Net income of $14.61 million, combined with prudent cash flow management, resulted in an increase in cash and cash equivalents to $173.60 million.
The company efficiently managed its investment portfolio, with proceeds from the maturities and calls of securities available-for-sale and held-to-maturity totaling $32.13 million and $34.20 million, respectively. Additionally, Arrow Financial Corporation exercised fiscal discipline in financing activities, leading to a net increase in deposits and effective utilization of borrowings.
Arrow Financial Corporation's financial statements for the second quarter of 2023 underscore its commitment to delivering value to shareholders, maintaining strong liquidity, and managing credit risks effectively. The company's diversified portfolio and strategic financial decisions position it for continued growth and success in the dynamic financial industry landscape.