Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
The latest announcement is out from Arrow Financial ( (AROW) ).
Arrow Financial Corporation reported first-quarter 2026 net income of $13.5 million, or $0.82 per diluted share, compared with $14.0 million and $0.85 per share in the fourth quarter of 2025, with results pressured by about $790,000 in merger expenses tied to its planned acquisition of Adirondack Bancorp. Excluding these non-core costs, operating EPS reached a record $0.85 as net interest margin expanded to 3.48%, credit quality remained strong and the board declared a second-quarter dividend of $0.30 per share payable May 26, 2026, underscoring steady shareholder returns as Arrow prepares to add roughly $950 million in assets and 19 branches, strengthening its competitive position in its New York markets.
Arrow’s first-quarter metrics highlighted improved net interest income, an efficiency ratio below 60% and declining funding costs, including an 11-basis-point drop in the cost of retail deposits to 1.62%. Management pointed to non-performing loans of just 13 basis points, a return on average assets of 1.23% (1.29% on an operating basis) and the anticipated closing of the Adirondack deal in the third quarter of 2026 as key elements in building a larger, more profitable community banking franchise for shareholders and customers.
The most recent analyst rating on (AROW) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Arrow Financial stock, see the AROW Stock Forecast page.
Spark’s Take on AROW Stock
According to Spark, TipRanks’ AI Analyst, AROW is a Neutral.
The score is primarily held back by the sharp 2025 cash flow deterioration despite improved profitability and a strong, low-leverage balance sheet. Valuation (low P/E and solid dividend yield) and positive corporate actions (dividend raise and expansion-oriented acquisition announcement) provide support, while technical indicators are mixed and do not add strong momentum.
To see Spark’s full report on AROW stock, click here.
More about Arrow Financial
Arrow Financial Corporation is a regional financial services company that operates as a community banking franchise in upstate New York. Through its bank subsidiaries and branch network, Arrow focuses on traditional banking services, emphasizing low-cost retail deposit gathering, loan growth and conservative credit quality metrics to serve customers and local communities.
Average Trading Volume: 95,310
Technical Sentiment Signal: Buy
Current Market Cap: $595.4M
For detailed information about AROW stock, go to TipRanks’ Stock Analysis page.