Arrow Financial Corp. in Glen Falls, N.Y., said Tuesday that a higher net interest margin boosted its second-quarter net income 29% from a year earlier, to $5.4 million.
Earnings per share rose 31%, to 51 cents.
The $1.6 billion-asset Arrow said it benefited from the yield curve, as its deposits repriced to lower rates faster than its loans did. Its net interest margin grew 36 basis points from the first quarter and 60 basis points from a year earlier, to 3.92%.
Loans grew 4.4% from a year earlier, to $1.1 billion. Deposits grew 3.6%, to $1.2 billion.
The provision for loan losses increased 169%, to $248,000, but Thomas L. Hoy, Arrow's chairman, president, and chief executive, said in a press release that asset quality remains strong. Its ratio of nonperforming loans to loans rose only 4 basis points from a year earlier, to 0.24%.
