Arrow Announces Second Quarter Results.GLENS FALLS Glens Falls, city (1990 pop. 15,023), Warren co., E central N.Y., in the foothills of the Adirondack Mts. and on the Hudson River; settled 1762, inc. as a city 1908. Major industries include lumber, paper, and electronics. A navy training center is there. , N.Y., July July: see month. 25 /PRNewswire-FirstCall/ -- Arrow ARROW Australian Research Repositories Online to the World (Clayton, Vic, Australia)ARROW Active Resistance to the Roots of War ARROW Antiresonant Reflecting Optical Waveguide Financial Corporation announced operating results for the three and six month periods ended June 30, 2006. Net income for the second quarter of 2006 was $4.3 million which compared with $4.7 million in 2005. This represented diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $.41 for the 2006 period versus $.44 for the comparable 2005 period, or a decrease of 6.8%. Diluted earnings per share for the first six months of 2006 were $.80 with net income totaling $8.3 million which compared with diluted earnings per share of $.85 when net income was $9.1 million in 2005. Cash dividends paid to shareholders in 2006 totaled $.48 and represented a 7.5% increase over the amount paid last year. Thomas L. Hoy Hoy, island, 13 mi (21 km) long and 6 mi (9.7 km) wide, off N Scotland, second largest of the Orkney Islands. It is located at the southwestern side of the Scapa Flow anchorage. , Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "Continued actions by the Federal Reserve to raise the targeted federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. resulted in further narrowing of our net interest margin. Our funding costs have been more sensitive to the effects of these rate movements than our earning asset Earning asset An asset that generates income, e.g., income from rental property. yields, resulting in continuing margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. in the second quarter. This has led to a lower level of net interest income, in both the three and six month periods of 2006, which is the principal source of our earnings. Net interest margin was 3.35% in the second quarter of 2006 as compared with 3.72% for the same quarter last year while the net interest margin for the six month periods was 3.37% for 2006 versus 3.75% for 2005." Total assets at June 30, 2006 were $1.516 billion, or 4.3% above $1.454 billion reported one year earlier. Deposits rose 4.2% to $1.151 billion which compares with $1.105 billion at June 30, 2005. Loans outstanding at period-end were $995 million, up 4.4% from $953 million one year earlier. Loans to small businesses again demonstrated the most growth, increasing 13.6% to $264 million from $232 million at June 30, 2005. Residential mortgage financings totaled $394 million at quarter-end 2006, or 6.1% above the prior year's balance of $371 million. Indirect loan balances, essentially loans to finance motor vehicles, were $333 million at June 30, 2006, off 1.8% from $340 million one year earlier. Demand for small business loans continues to be relatively strong while residential mortgage financings have recently slowed in reaction to higher rates. The change in indirect loan outstandings reflects moderating demand together with a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in manufacturers' sponsorship of discounted financing programs. Mr. Hoy added, "Our key credit quality measurements continue to be excellent. Nonperforming loans at June 30, 2006 were $1.3 million and represented just .13% of period-end loans while nonperforming assets were $1.4 million or only .09% of period-end assets. The balances of nonperforming loans and nonperforming assets are at their lowest quarter-end levels in more than ten years. Net loan losses were a low .07% (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ) for the six month period ending June 30, 2006." Other recent highlights include the Company's inclusion in the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on (R) Global Select Market, which has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. At the local level, Glens Falls National's Community Development Corporation has acquired its first property as part of its support of affordable housing initiatives and expects to place the property early in the fourth quarter. Also, ground breaking is now imminent Impending; menacingly close at hand; threatening. Imminent peril, for example, is danger that is certain, immediate, and impending, such as the type an individual might be in as a result of a serious illness or accident. for our previously announced third office in the greater Plattsburgh Plattsburgh, city (1990 pop. 21,255), seat of Clinton co., NE N.Y., on Lake Champlain; settled 1767, inc. 1902. It is a trade and distribution point, with plants making transportation equipment, paper, and plastics. market. Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, NY serving the financial needs of northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Arrow is the parent of the Glens Falls National Bank and Trust Company and Saratoga Saratoga, residential city (1990 pop. 28,061), Santa Clara co., W Calif., in a vineyard and orchard area, in the foothills of the Santa Cruz Mts.; inc. 1956. Wine is produced in the city; local attractions include tours of the champagne cellars. National Bank and Trust Company. 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. Examples are management's statements about future economic conditions and anticipated business developments. These statements are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and involve a degree of uncertainty and attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast. 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 conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's Annual Report on Form 10-K for the year ended December December: see month. 31, 2005.
Arrow Financial Corporation
Consolidated Financial Information
($ in thousands, except per share amounts)
Unaudited
Three Months Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
Income Statement
Interest and Dividend
Income $20,008 $17,776 $39,340 $34,643
Interest Expense 8,512 5,621 16,362 10,684
Net Interest Income 11,496 12,155 22,978 23,959
Provision for Loan Losses 101 176 374 408
Net Interest Income
After Provision for
Loan Losses 11,395 11,979 22,604 23,551
Net (Losses) Gains on
Securities Transactions (118) 125 (118) 189
Net Gain on Sales of Loans 12 22 55 27
Gain on Sale of Premises 227 -- 227 --
Income From Fiduciary
Activities 1,307 1,181 2,610 2,288
Fees for Other Services
to Customers 2,009 1,948 3,813 3,548
Insurance Commissions 482 488 904 883
Other Operating Income 133 118 287 241
Total Other Income 4,052 3,882 7,778 7,176
Salaries and Employee
Benefits 5,480 5,288 10,951 10,343
Occupancy Expenses of
Premises, Net 815 757 1,620 1,464
Furniture and Equipment
Expense 813 746 1,570 1,511
Amortization of Intangible
Assets 106 122 223 142
Foreclosed Property Expense 10 -- 10 --
Other Operating Expense 2,107 2,262 4,111 4,200
Total Other Expense 9,331 9,175 18,485 17,660
Income Before Taxes 6,116 6,686 11,897 13,067
Provision for Income Taxes 1,839 2,006 3,561 3,957
Net Income $ 4,277 $ 4,680 $ 8,336 $ 9,110
Share and Per Share Data(1)
Period End Shares
Outstanding 10,250 10,426 10,250 10,426
Basic Average Shares
Outstanding 10,299 10,435 10,328 10,465
Diluted Average Shares
Outstanding 10,436 10,613 10,473 10,659
Basic Earnings Per Share $0.42 $0.45 $0.81 $0.87
Diluted Earnings Per Share 0.41 0.44 0.80 0.85
Cash Dividends 0.24 0.22 0.48 0.45
Book Value 11.19 11.30 11.19 11.30
Tangible Book Value(2) 9.52 9.63 9.52 9.63
Key Earnings Ratios
Return on Average Assets 1.13% 1.29% 1.10% 1.29%
Return on Average Equity 14.84 16.06 14.43 15.65
Net Interest Margin(3) 3.35 3.72 3.37 3.75
(1) Share and Per Share amounts have been restated for the September 2005
3% stock dividend.
(2) Tangible Book Value per share is the ratio of Total Equity less
Intangible Assets to Period End Shares Outstanding.
(3) Net Interest Margin includes a tax equivalent upward adjustment of 18
basis points for all periods presented.
Arrow Financial Corporation
Consolidated Financial Information
($ in thousands)
Unaudited
June 30, 2006 June 30, 2005
Second Year-to- Second Year-to-
Period Quarter Date Period Quarter Date
End Average Average End Average Average
Balance
Sheet
Cash and
Due From
Banks $38,244 $33,473 $33,656 $33,541 $35,705 $35,500
Federal
Funds
Sold -- 7,077 4,917 -- 5,082 3,340
Securities
Available-
for-Sale 336,167 344,275 338,262 321,101 334,413 334,150
Securities
Held-to-
Maturity 100,432 107,451 111,077 106,478 112,103 111,039
Loans 994,838 995,594 997,566 952,938 927,224 905,075
Allowance
for Loan
Losses (12,265) (12,270) (12,249) (12,168) (12,102) (12,074)
Net Loans 982,573 983,324 985,317 940,770 915,122 893,001
Premises and
Equipment,
Net 15,746 16,075 16,016 15,422 15,301 15,070
Goodwill
and
Intangible
Assets,
Net 17,164 17,206 17,247 17,461 17,045 14,396
Other
Assets 26,008 14,283 15,004 19,532 15,466 17,130
Total
Assets $1,516,334 $1,523,164 $1,521,496 $1,454,305 $1,450,237 $1,423,626
Demand
Deposits $183,321 $181,263 $179,341 $178,708 $173,194 $166,585
Nonmaturity
Interest-
Bearing
Deposits 555,721 582,777 587,562 612,543 623,112 607,769
Time
Deposits
of
$100,000
or More 159,549 167,761 160,785 113,062 137,875 123,557
Other Time
Deposits 252,514 245,825 239,849 200,925 194,692 184,763
Total
Deposits 1,151,105 1,177,626 1,167,537 1,105,238 1,128,873 1,082,674
Short-Term
Borrowings 49,817 43,289 41,081 50,919 34,557 41,846
Federal Home
Loan Bank
Advances 163,000 147,410 157,234 145,000 134,341 146,105
Long-Term
Debt 20,000 20,000 20,000 20,000 20,000 20,000
Other
Liabilities 17,666 19,213 19,116 15,281 15,586 15,637
Total
Liabil-
ities 1,401,588 1,407,538 1,404,968 1,336,438 1,333,357 1,306,262
Common
Stock 13,883 13,883 13,883 13,479 13,479 13,479
Surplus 139,952 139,845 139,789 128,266 128,024 127,889
Undivided
Profits 24,800 23,577 22,852 27,799 26,570 25,437
Unallocated
ESOP Shares (862) (862) (865) (1,182) (1,182) (1,184)
Accumulated
Other
Comprehensive
Loss (7,558) (6,689) (5,857) (1,540) (1,767) (1,111)
Treasury
Stock (55,469) (54,128) (53,274) (48,955) (48,244) (47,146)
Total
Share-
holders'
Equity 114,746 115,626 116,528 117,867 116,880 117,364
Total
Liabil-
ities and
Share-
holders'
Equity
$1,516,334 $1,523,164 $1,521,496 $1,454,305 $1,450,237 $1,423,626
Assets Under
Trust
Administration
and Investment
Manage-
ment $847,260 $805,964
Capital
Ratios
Leverage
Ratio 8.32% 8.54%
Tier 1
Risk-
Based
Capital
Ratio 12.63 12.87
Total Risk-
Based
Capital
Ratio 13.85 14.13
Arrow Financial Corporation
Consolidated Financial Information
($ in thousands)
Unaudited
June 30,
2006 2005
Loan Portfolio
Commercial, Financial and Agricultural $ 83,591 $ 87,663
Real Estate - Commercial 180,452 144,769
Real Estate - Residential 387,373 363,345
Real Estate - Construction 6,386 7,805
Indirect Consumer Loans 333,498 339,766
Other Loans to Individuals 3,538 9,590
Total Loans $994,838 $952,938
Allowance for Loan Losses, Second Quarter
Allowance for Loan Losses, Beginning of Period $12,253 $12,091
Loans Charged-off (184) (203)
Recoveries of Loans Previously Charged-off 95 104
Net Loans Charged-off (89) (99)
Provision for Loan Losses 101 176
Allowance for Loan Losses, End of Period $12,265 $12,168
Allowance for Loan Losses, First Six Months
Allowance for Loan Losses, Beginning of Period $12,241 $12,046
Loans Charged-off (544) (450)
Recoveries of Loans Previously Charged-off 194 164
Net Loans Charged-off (350) (286)
Provision for Loan Losses 374 408
Allowance for Loan Losses, End of Period $12,265 $12,168
Nonperforming Assets
Nonaccrual Loans $968 $1,761
Loans Past Due 90 or More Days and Accruing 349 199
Restructured Loans -- --
Total Nonperforming Loans 1,317 1,960
Repossessed Assets 54 10
Other Real Estate Owned -- 19
Total Nonperforming Assets $1,371 $1,989
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans,
Second Quarter Annualized 0.04% 0.04%
Net Loans Charged-off to Average Loans,
First Six Months Annualized 0.07 0.06
Provision for Loan Losses to Average Loans,
Second Quarter Annualized 0.04 0.08
Provision for Loan Losses to Average Loans,
First Six Months Annualized 0.08 0.09
Allowance for Loan Losses to Period-End Loans 1.23 1.28
Allowance for Loan Losses to Nonperforming Loans 931.30 620.79
Nonperforming Loans to Period-End Loans 0.13 0.21
Nonperforming Assets to Period-End Assets 0.09 0.14
CONTACT: Tim Badger badger, name for several related members of the weasel family. Most badgers are large, nocturnal, burrowing animals, with broad, heavy bodies, long snouts, large, sharp claws, and long, grizzled fur. of Arrow Financial Corporation, +1-518-745-1000, ext. 306 Web site: http://www.arrowfinancial.com/ |
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