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.
Arrow Financial Corporation published this content on April 16, 2025, and is solely responsible for the information contained herein. Distributed via EDGAR on April 16, 2025 at 20:50 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]