Arrow Financial (AROW) in Glens Falls, N.Y., posted higher quarterly earnings because of loan growth and an improved net interest margin.
The $2.2 billion-asset company said in a press release Monday that its second-quarter profit rose 6% from a year earlier, to $5.5 million. Earnings per share of 45 cents missed the average estimate of analysts polled by Bloomberg by 2 cents.
Net interest income increased 11%, to $15.1 million, while the net interest margin expanded by 18 basis points, to 3.17%. The company's loan portfolio increased by 12%, to $1.3 billion.
Arrow's noninterest income held steady, at $7 million. Higher income from fiduciary activities and insurance commissions partially offset lower gains from loan sales and losses from selling securities.
Noninterest expenses rose nearly 4%, to $13.7 million, because of higher salary and employee benefits and an increase in occupancy costs.
Arrow reported a $505,000 loan-loss provision in the second quarter. That company's provision was $100,000 a year earlier..