Arrow Financial Corporation announced its financial results for the first quarter of 2025, reporting a net income of $6.3 million, which translates to an earnings per share $(EPS)$ of $0.38. This reflects an increase from the fourth quarter of 2024, where the net income was $4.5 million with an EPS of $0.27. The net interest income reached a record $31.4 million, contributing to the strong margin expansion. The net interest margin improved to 3.07%, up from 2.83% in the previous quarter. The company faced an adverse impact this quarter due to a $3.75 million specific reserve related to a $15 million commercial real estate loan participation. Despite this, Arrow managed to increase its deposit balances to $4.0 billion, leading to a loan-to-deposit ratio of 86.1%. The cost of interest-bearing deposits decreased by 23 basis points to 2.41%. Year-to-date loan growth was approximately $22 million, or 2.5% annualized, despite increased loan pay-offs and sale activities. The quarter-end loan exit rates rose to 5.45% as of March 31, 2025, from 5.40% at the end of December 2024. The tangible book value increased to $22.72, and Arrow repurchased $3.4 million worth of shares, totaling 128,047 shares at an average cost of $26.48 per share. Additionally, the share repurchase authority was increased by $5.0 million, leaving a total of $6.6 million available for repurchases. Arrow is moving forward with its strategic initiatives, including expanding its Corporate Banking Team in New York's Capital Region and nearing the completion of its bank unification efforts scheduled for July 2025.