Arrow Financial Q3 2026: Adirondack deal lifts net interest income 35.6%
As seen on the 24/7 Wall St. homepage on October 29, 2026.
The Adirondack Bancorp deal is already paying: net interest income jumped 35.6% sequentially, lifting core earnings past expectations on both lines. GAAP results still carry merger costs, and management says most targeted cost savings land by the first quarter of 2027.
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Arrow Financial's first full quarter owning Adirondack Bancorp came in ahead of expectations on both lines, with net interest income rising 35.6% sequentially as lower-cost acquired deposits lifted the FTE net interest margin to 3.81%.
Merger-related expenses of $15.6 million pulled GAAP diluted EPS down to $0.31, showing how much of the quarter's cost burden is still integration-driven. Those charges are expected to fade as the bank completes a core system conversion scheduled for November 7 and 8.
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CEO David S. DeMarco said the company remains on track to have roughly 95% of anticipated cost savings in place by the first quarter of 2027, when the gap between GAAP and core earnings narrows. Total assets expanded to approximately $5.50 billion.
There are real risks in the near term: nonperforming assets rose to $12.7 million and management flagged an expected seasonal uptick in loan delinquencies in the fourth quarter. The board declared a $0.30 quarterly dividend payable November 23.
Mentioned: AROW