Arrow Financial Corporation
04/16/2025 | Press release | Distributed by Public on 04/16/2025 14:50
Material Event (Form 8-K)
Item 8.01 Other Events
Arrow Financial Corporation's ("Arrow") financial performance for the quarter ended March 31, 2025 will be adversely impacted by the recognition of a $3.75 million specific reserve on a $15 million commercial real estate loan. The loan is secured by properties in two office parks located in Upstate New York, where Arrow is a 22% participant in a $67 million multi-bank deal.
The loan had been reported as non-performing in Arrow's 2024 and 2023 Forms 10-K and had no previous reserve, given the then-current appraised valuation of $86.1 million from January 2024. As of March 31, 2025, the borrower is in payment default and the bank group has commenced foreclosure. As a result, a new appraisal was obtained, which resulted in an updated valuation of $50 million. After recording the specific reserve, Arrow's estimated remaining exposure is approximately $10.64 million.
Additional information will be provided in Arrow's 1Q 2025 earnings release and the 1Q 2025 investor presentation.