Quarterly earnings decline on higher credit loss provisions
Arrow Financial 2Q26 net income fell to $11 million, or $0.66 a share, from $13.5 million, or $0.82, in 1Q26.
Provision for credit losses climbed to $2.8 million from $0.5 million, including a $1.6 million specific reserve tied to a bankrupt commercial borrower.
Net interest income edged down 0.6% to $35.9 million; net interest margin narrowed 0.06 percentage point to 3.42%.
Deposits decline as acquisition closes and dividend is declared
Deposits dropped to $3.7 billion from $4.06 billion, driven by $300 million of brokered CDs replaced with lower-cost FHLB borrowings.
The company completed the July 1 acquisition of Adirondack Bank, adding about in assets and .
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