Arrow Financial in Glens Falls, N.Y., reported an increase in quarterly profit because of increased lending.
The $2.2 billion-asset company's third-quarter earnings rose 9% from a year earlier, to $6.1 million. Earnings per share of 49 cents beating the average of analysts polled by Bloomberg by 2 cents.
Loan growth drove profits. Income from interest-bearing assets rose 9%, to $15.4 million. Total loans increased 11%, to $1.4 billion. The net interest margin widened by 15 basis points, to 3.21%, as lower loan yields were offset by strong returns on investments.
Asset quality dipped slightly. The company set aside $444,000 for bad loans; it had no loan-loss provision a year earlier. Net chargeoffs nearly doubled, to $187,000.
Fee-based income rose 6%, to $7.4 million, mainly from trusts and other fiduciary lines of business.
Operating expenses increased 3%, to $13.5 million.