Arrow Financial reported third-quarter 2026 net income of $5.7 million, or $0.31 per diluted share, in its first quarter following the July 1 acquisition of Adirondack Bancorp and Adirondack Bank. Results included $15.6 million in merger-related expenses; excluding those costs, Arrow reported core earnings of $0.97 per share.
The company also declared a quarterly dividend of $0.30 per share and said it expects to finish integrating the core banking systems in the coming weeks.
Key details
- Reported and core earnings: Net income was $5.7 million, compared with $11.0 million in the second quarter; diluted EPS was $0.31, versus $0.66. Arrow said the quarter included about $15.6 million in acquisition-related expenses, equal to $0.66 per share. Excluding those expenses, core EPS was $0.97. Core EPS is a non-GAAP measure.
- Acquisition: Arrow completed its purchase of Adirondack Bancorp on July 1. The transaction added about $600 million in loans and $900 million in deposits.
- Integration and savings: Arrow said it expects to complete the core banking system integration within weeks and remains on track to realize about 95% of anticipated cost savings by the first quarter of 2027.
- Business trends: CEO David DeMarco cited strong loan growth, net interest margin expansion, higher non-interest income and growth in core return on assets. The release did not provide figures for those trends in the material presented here.
- Dividend: The board declared a cash dividend of $0.30 per share, payable November 23 to shareholders of record on November 11.
- Investor materials: Arrow made available a third-quarter investor presentation covering financial results and trends through September 30.
The acquisition has expanded Arrow’s loan and deposit base, while its reported third-quarter earnings included substantial merger costs. The company’s core earnings figure removes those costs; reported net income and EPS include them.