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Arrow Financial

Nasdaq:AROW
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AROW
Nasdaq
$492M
Market Cap
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Last updated 2019/04/16 23:32
Company description

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The last earnings update was 39 days ago. More info.

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AROW Share Price and Events
7 Day Returns
2.3%
NasdaqGS:AROW
0.9%
US Banks
0.4%
US Market
1 Year Returns
0.2%
NasdaqGS:AROW
-5.2%
US Banks
6.8%
US Market
AROW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arrow Financial (AROW) 2.3% -1.6% 2.3% 0.2% 36.7% 48%
US Banks 0.9% -0.8% 6.4% -5.2% 45.9% 47%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • AROW outperformed the Banks industry which returned -5.2% over the past year.
  • AROW underperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
AROW
Industry
5yr Volatility vs Market

Value

 Is Arrow Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arrow Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arrow Financial.

NasdaqGS:AROW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $16.82 * 11.3% 		$1.90
Book Value of Equity per Share Median Book Value from the past 5 years. $16.82
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AROW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.625 (1 + (1- 21%) (71.87%)) 		0.986
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.986 * 5.96%) 		8.61%

Discounted Cash Flow Calculation for NasdaqGS:AROW using Excess Returns Model Model

The calculations below outline how an intrinsic value for Arrow Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:AROW Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.3% – 8.61%) * $16.82) 		$0.45
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.45 / (8.61% - 2.73%) 		$7.67
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.82 + $7.67 		$24.49
NasdaqGS:AROW Discount to Share Price
Calculation Result
Value per share (USD) From above. $24.49
Current discount Discount to share price of $34.01
= -1 x ($34.01 - $24.49) / $24.49 		-38.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Arrow Financial is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arrow Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arrow Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AROW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.52
NasdaqGS:AROW Share Price ** NasdaqGS (2019-04-16) in USD $34.01
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 12.96x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arrow Financial.

NasdaqGS:AROW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AROW Share Price ÷ EPS (both in USD)

= 34.01 ÷ 2.52

 13.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrow Financial is overvalued based on earnings compared to the US Banks industry average.
  • Arrow Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arrow Financial's expected growth come at a high price?
Raw Data
NasdaqGS:AROW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts		 Not available
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.26x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Arrow Financial, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arrow Financial's assets?
Raw Data
NasdaqGS:AROW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $18.63
NasdaqGS:AROW Share Price * NasdaqGS (2019-04-16) in USD $34.01
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.23x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NasdaqGS:AROW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AROW Share Price ÷ Book Value per Share (both in USD)

= 34.01 ÷ 18.63

 1.83x

* Primary Listing of Arrow Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrow Financial is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Arrow Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
    5. Arrow Financial has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arrow Financial expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Arrow Financial expected to grow at an attractive rate?
  • Arrow Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arrow Financial's earnings growth is positive but not above the United States of America market average.
  • Unable to compare Arrow Financial's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AROW Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AROW Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 0 Analysts 3.9%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AROW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AROW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:AROW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 110 42 36
2018-09-30 108 45 36
2018-06-30 107 40 34
2018-03-31 104 40 31
2017-12-31 103 38 29
2017-09-30 101 36 28
2017-06-30 100 38 27
2017-03-31 98 34 27
2016-12-31 97 35 27
2016-09-30 96 34 27
2016-06-30 95 30 26
2016-03-31 94 31 25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arrow Financial's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Arrow Financial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AROW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Arrow Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AROW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.72 2.72 2.72 1.00
2019-12-31 2.54 2.54 2.54 1.00
NasdaqGS:AROW Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.52
2018-09-30 2.48
2018-06-30 2.35
2018-03-31 2.18
2017-12-31 2.05
2017-09-30 1.95
2017-06-30 1.90
2017-03-31 1.87
2016-12-31 1.87
2016-09-30 1.87
2016-06-30 1.82
2016-03-31 1.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Arrow Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Arrow Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arrow Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arrow Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arrow Financial's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arrow Financial's year on year earnings growth rate has been positive over the past 5 years.
  • Arrow Financial's 1-year earnings growth exceeds its 5-year average (23.7% vs 9.6%)
  • Arrow Financial's earnings growth has not exceeded the US Banks industry average in the past year (23.7% vs 44.5%).
Earnings and Revenue History
Arrow Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arrow Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AROW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 110.36 36.28 49.66
2018-09-30 108.46 35.59 48.79
2018-06-30 106.69 33.75 48.51
2018-03-31 104.31 31.23 47.98
2017-12-31 102.56 29.33 48.27
2017-09-30 101.18 27.86 47.52
2017-06-30 99.70 27.18 46.88
2017-03-31 98.32 26.62 45.92
2016-12-31 97.36 26.53 45.12
2016-09-30 96.33 26.50 44.06
2016-06-30 95.00 25.70 43.92
2016-03-31 94.05 25.36 43.70
2015-12-31 92.70 24.66 43.30
2015-09-30 91.74 24.46 42.27
2015-06-30 90.83 24.68 41.35
2015-03-31 88.95 23.90 41.01
2014-12-31 87.56 23.36 40.82
2014-09-30 86.65 22.78 41.18
2014-06-30 85.44 22.25 40.87
2014-03-31 84.35 21.93 40.43
2013-12-31 84.08 21.80 40.35
2013-09-30 83.41 21.56 39.96
2013-06-30 83.56 21.69 39.96
2013-03-31 83.82 22.07 39.97
2012-12-31 83.68 22.18 40.00
2012-09-30 82.96 22.06 39.83
2012-06-30 84.11 21.69 39.87

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arrow Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arrow Financial used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Arrow Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Arrow Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arrow Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arrow Financial's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Arrow Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arrow Financial Company Filings, last reported 3 months ago.

NasdaqGS:AROW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 269.58 353.66 43.56
2018-09-30 264.81 258.50 92.30
2018-06-30 259.49 261.25 60.74
2018-03-31 252.73 139.96 100.27
2017-12-31 249.60 244.97 42.07
2017-09-30 244.65 169.42 80.67
2017-06-30 240.75 237.89 66.08
2017-03-31 236.11 139.04 64.80
2016-12-31 232.85 233.84 28.75
2016-09-30 229.21 113.59 102.06
2016-06-30 225.37 218.50 63.12
2016-03-31 220.70 120.16 60.71
2015-12-31 213.97 180.17 27.62
2015-09-30 211.14 99.41 69.69
2015-06-30 206.95 128.77 45.14
2015-03-31 204.97 85.90 111.60
2014-12-31 200.93 90.42 26.31
2014-09-30 200.09 49.65 64.66
2014-06-30 197.62 70.90 51.81
2014-03-31 194.49 53.79 76.05
2013-12-31 192.15 104.78 31.10
2013-09-30 182.68 55.98 72.05
2013-06-30 177.61 104.74 44.60
2013-03-31 177.80 62.17 137.17
2012-12-31 175.83 91.68 25.66
2012-09-30 176.31 68.04 136.42
2012-06-30 171.94 66.10 57.75
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Arrow Financial has an acceptable proportion of non-loan assets held.
  • Arrow Financial's liabilities are made up of primarily low risk sources of funding.
  • Loans at Arrow Financial are broadly funded by customer deposits.
  • Arrow Financial's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Arrow Financial has a sufficient allowance for bad loans.
  • Arrow Financial has an acceptable level of bad loans (less than 2%).
Show me more healthy companies in the Banks industry
X
Financial health checks
We assess Arrow Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Arrow Financial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Arrow Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.06%
Current annual income from Arrow Financial dividends. Estimated to be 3.13% next year.
If you bought $2,000 of Arrow Financial shares you are expected to receive $61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arrow Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Arrow Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AROW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 472 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AROW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.08 1.00
2019-12-31 1.05 1.00
NasdaqGS:AROW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-30 1.040 3.058
2018-10-31 1.040 3.120
2018-10-22 0.979 2.809
2018-07-25 1.010 2.695
2018-04-25 0.971 2.691
2018-01-31 0.971 2.968
2017-10-25 0.971 2.861
2017-10-23 0.944 2.775
2017-04-26 0.943 3.034
2017-01-25 0.943 2.892
2016-10-26 0.943 2.675
2016-10-20 0.916 3.043
2016-07-27 0.915 3.068
2016-04-27 0.915 3.391
2016-01-27 0.915 3.758
2015-10-28 0.915 3.622
2015-07-29 0.897 3.639
2015-04-29 0.897 3.734
2015-01-28 0.897 3.756
2014-10-22 0.897 3.764
2014-07-30 0.880 3.818
2014-04-30 0.880 3.900
2014-01-29 0.880 3.860
2013-10-30 0.880 3.806
2013-07-31 0.862 3.821
2013-05-01 0.862 3.970
2013-01-30 0.862 4.096
2012-10-31 0.862 4.080
2012-10-17 0.845 3.979
2012-07-25 0.845 4.007
2012-07-20 0.845 4.190
2012-04-25 0.846 4.164
2012-04-18 0.845 4.213
2012-01-25 0.846 4.035
2012-01-24 0.845 3.976
2011-10-26 0.846 4.283
2011-07-27 0.821 4.242
2011-04-27 0.821 4.155
2011-01-26 0.821 4.141
2010-10-27 0.821 3.716
2010-10-14 0.798 3.763
2010-07-28 0.797 4.058
2010-07-13 0.797 4.246
2010-04-28 0.797 3.928
2010-04-20 0.797 3.577
2010-01-27 0.797 3.831
2010-01-20 0.797 4.052
2009-10-29 0.797 3.974
2009-10-19 0.775 3.770
2009-07-29 0.774 3.606
2009-07-17 0.774 3.619
2009-04-29 0.774 3.867
2009-04-17 0.774 3.862

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Arrow Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
Show me more dividend paying companies in the Banks industry
X
Income/ dividend checks
We assess Arrow Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arrow Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Arrow Financial has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Arrow Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Murphy
COMPENSATION $1,335,544
AGE 59
TENURE AS CEO 6.3 years
CEO Bio

Mr. Thomas J. Murphy, also known as Tom, CPA has been the Chief Executive Officer and President of Glens Falls National Bank and Trust Company since January 1, 2013. Mr. Murphy serves as the President of Charles R. Wood Theater, Inc. He has been the President of Glens Falls National Bank and Trust Company since July 1, 2011. He has been Chief Executive Officer and President of Arrow Financial Corporation since January 1, 2013 and 2011, respectively. Mr. Murphy served as Senior Trust Officer till January 2010 and Senior Vice President of Glens Falls National Bank and Trust Company until July 1, 2011. He served as Corporate Secretary at Arrow Financial Corporation since May 1, 2009 until July 1, 2012 and its Senior Executive Vice President since July 1, 2011 until July 1, 2012. He was a Senior Vice President and Department Head for Personal Trust at Glens Falls National Bank. Mr. Murphy joined Glens Falls National Bank as Vice President and Personal Trust Manager in 2004 and was a Senior Vice President of Glens Falls National Bank since 2007, Assistant Corporate Secretary and Assistant Cashier since 2008 and Corporate Secretary and Cashier since 2009. He served as Vice President of Arrow Financial Corporation from May 1, 2009 to June 30, 2011. Prior to joining Glens Falls National Bank, he was a Partner in a regional accounting firm. He was the President of the Estate Planning Council of Eastern New York, Inc., a charter member of the Glens Falls Hospital Foundation Planned Giving Council. Mr. Murphy has been a Director of Glens Falls National Bank and Trust Company since July 1, 2011. He served as a Member of Board of Governors at Glens Falls Hospital since 2012 until August 23, 2016. He was an Assistant Secretary of Arrow since 2007. He also was the President of the Kiwanis Club of Glens Falls and was a Member of the Board of Directors of the Adirondack Regional Chambers of Commerce. He has been a Director of Arrow Financial Corporation since July 1, 2012. He serves as a Member of the Estate Planning Council of Eastern New York, Inc. and a Member of the Glens Falls Hospital Foundation Board of Trustees. He serves as a member of the American Institute of Certified Public Accountants (AICPA) and the New York State Society of Certified Public Accountants (NYSSCPA). Mr. Murphy is a graduate of Siena College magna cum laude with a BBA in Accounting.

CEO Compensation
  • Tom's compensation has increased by more than 20% in the past year.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arrow Financial management team in years:

4.2
Average Tenure
56
Average Age
  • The tenure for the Arrow Financial management team is about average.
Management Team

Tom Murphy

TITLE
President
COMPENSATION
$1M
AGE
59
TENURE
6.3 yrs

Ed Campanella

TITLE
Senior VP
COMPENSATION
$343K
AGE
50
TENURE
1.6 yrs

Andrew Wise

TITLE
Senior VP & COO
COMPENSATION
$313K
AGE
51
TENURE
1.2 yrs

Dave DeMarco

TITLE
Senior VP & Chief Banking Officer
COMPENSATION
$524K
AGE
56
TENURE
9.9 yrs

David Kaiser

TITLE
Senior Vice President
COMPENSATION
$427K
AGE
57
TENURE
4.2 yrs

Peter Lareau

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the Arrow Financial board of directors in years:

14.1
Average Tenure
67
Average Age
  • The average tenure for the Arrow Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Tom Hoy

TITLE
Chairman of the Board
COMPENSATION
$104K
AGE
69
TENURE
15 yrs

Tom Murphy

TITLE
President
COMPENSATION
$1M
AGE
59
TENURE
6.8 yrs

Michael Massiano

TITLE
Chairman Emeritus
COMPENSATION
$20K
AGE
83
TENURE
15 yrs

David Kruczlnicki

TITLE
Director
COMPENSATION
$60K
AGE
65
TENURE
30.3 yrs

Gary Dake

TITLE
Director
COMPENSATION
$56K
AGE
57
TENURE
16.3 yrs

Michael Clarke

TITLE
Director
COMPENSATION
$61K
AGE
71
TENURE
13.2 yrs

Bill Owens

TITLE
Lead Director
COMPENSATION
$53K
AGE
69
TENURE
1.9 yrs

Richard Reisman

TITLE
Director
COMPENSATION
$65K
AGE
72
TENURE
20.3 yrs

Ray O'Conor

TITLE
Director
COMPENSATION
$59K
AGE
62
TENURE
2.3 yrs

Colin Read

TITLE
Director
COMPENSATION
$54K
AGE
58
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • Arrow Financial insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Sell Richard Reisman Individual 01. Mar 19 01. Mar 19 -713 $35.14 $-25,055
30. Aug 18 Sell David Kaiser Individual 29. Aug 18 29. Aug 18 -992 $37.85 $-37,547
31. Jul 18 Sell Raymond O'Conor Individual 30. Jul 18 30. Jul 18 -1,030 $37.76 $-38,890
24. May 18 Sell David DeMarco Individual 23. May 18 23. May 18 -4,140 $36.43 $-150,793
X
Management checks
We assess Arrow Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Arrow Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Many Arrow Financial Corporation (NASDAQ:AROW) Shares Do Institutions Own?

If you want to know who really controls Arrow Financial Corporation (NASDAQ:AROW), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of US$491m, Arrow Financial is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St - –

Risk Factors To Consider Before Investing In Arrow Financial Corporation (NASDAQ:AROW)

As a small-cap bank with a market capitalisation of US$483m, Arrow Financial Corporation’s (NASDAQ:AROW) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Arrow Financial’s bottom line. … View our latest analysis for Arrow Financial

Simply Wall St - –

Is Arrow Financial Corporation's (NASDAQ:AROW) CEO Pay Fair?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Tom Murphy's Compensation Compare With Similar Sized Companies. … Our data indicates that Arrow Financial Corporation is worth US$478m, and total annual CEO compensation is US$1.3m.

Simply Wall St - –

What To Know Before Buying Arrow Financial Corporation (NASDAQ:AROW) For Its Dividend

Arrow Financial Corporation (NASDAQ:AROW) has pleased shareholders over the past 10 years, by paying out dividends. … The stock currently pays out a dividend yield of 3.1%, and has a market cap of US$481m. … Let's take a look at Arrow Financial in more detail.

Simply Wall St - –

4 Days Left Until Arrow Financial Corporation (NASDAQ:AROW) Trades Ex-Dividend

Arrow Financial Corporation (NASDAQ:AROW) will be distributing its dividend of US$0.26 per share on the 15 March 2019, and will start trading ex-dividend in 4 days time on the 28 February 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Arrow Financial's latest financial data to analyse its dividend attributes. … 5 questions to ask before buying a dividend stock?

Simply Wall St - –

Can Arrow Financial Corporation (NASDAQ:AROW) Survive The Next Financial Crisis?

Arrow Financial Corporation’s (NASDAQ:AROW) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$452m. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels. … Low levels of leverage coupled with sufficient liquidity may place Arrow Financial in a safe position in the face of adverse headwinds.

Simply Wall St - –

Have Insiders Been Selling Arrow Financial Corporation (NASDAQ:AROW) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Arrow Financial Corporation (NASDAQ:AROW). … Arrow Financial Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Arrow Financial shares, than buying

Simply Wall St - –

Does Arrow Financial Corporation (NASDAQ:AROW) Have A Good P/E Ratio?

To keep it practical, we'll show how Arrow Financial Corporation's (NASDAQ:AROW) P/E ratio could help you assess the value on offer. … Arrow Financial has a P/E ratio of 12.62, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - –

What You Should Know About Arrow Financial Corporation’s (NASDAQ:AROW) Risks

As a small-cap bank with a market capitalisation of US$490m, Arrow Financial Corporation’s (NASDAQ:AROW) profit and value are directly affected by economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Arrow Financial’s bottom line. … See our latest analysis for Arrow Financial

Simply Wall St - –

Is Arrow Financial Corporation's (NASDAQ:AROW) CEO Paid At A Competitive Rate?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Tom Murphy's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Arrow Financial Corporation has a market cap of US$502m, and is paying total annual CEO compensation of US$816k

Simply Wall St - –

Company Info

Description

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and improvements to commercial properties, as well as commercial construction and land development loans to finance projects. The company’s lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, as well as fixed home equity loans and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations into the secondary market. Further, the company provides retirement planning, trust, and estate administration services for individuals; and pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, as well as surrounding areas. It owns 28 branch banking offices; and leases 12 branch banking offices, as well as 2 residential loan origination offices. The company was founded in 1851 and is headquartered in Glens Falls, New York.

Details
Name: Arrow Financial Corporation
AROW
Exchange: NasdaqGS
Founded: 1851
$492,072,120
14,468,454
Website: http://www.arrowfinancial.com
Address: Arrow Financial Corporation
250 Glen Street,
Glens Falls,
New York, 12801,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AROW Common Stock Nasdaq Global Select US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
516
Arrow Financial employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:32
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/03/25
Last earnings filing: 2019/03/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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