Arrow Financial (AROW +2.69%) stock is posting strong gains this week. The company's share price was up 14.9% from last week's market close before the market opened this Friday, according to data from S&P Global Market Intelligence.
On Oct. 24, Arrow Financial published third-quarter results that beat the company's expectations. Two days later, the regional bank issued a press release announcing that it was resuming its dividend-reinvestment plan and expanding its stock-buyback initiative.
NASDAQ: AROW
Key Data Points
Arrow Financial delivers solid Q3 results and other positives
Arrow saw its total loans rise 9% year over year to reach $3.1 billion at the end of the third quarter. Total assets at the end of the period were $4.3 billion. Net income declined to $7.7 million from $12.2 million in the prior-year period due to higher interest expenses, but it was up $1.7 million on a sequential quarterly basis.
Meanwhile, non-performing assets decreased to $6.9 million -- representing 0.16% of total assets at the end of the period. The company ended the quarter with $334 million in on-balance-sheet liquidity -- representing roughly 8% of total assets.
On Oct. 26, Arrow published a press release announcing a quarterly dividend of $0.27 per share -- in line with its previous quarterly payout. The company also announced that its board of directors had voted to expand its share-repurchasing program by $5 million, bringing the total buyback amount to $9.1 million. Additionally, management announced that the company's dividend reinvestment plan (DRIP) was being restarted.
Is Arrow Financial Stock a buy?
With expanded buybacks and the resumption of DRIP availability for shareholders, the company seems to have increased confidence in its business operations and financial structure. Shares yield roughly 5.1% at current prices and are valued at roughly 11 times this year's expected earnings.
AROW PE Ratio (Forward) data by YCharts
While regional banks have struggled recently, Arrow's recent performance and financial footing looks solid. With the stock still down roughly 37% year to date even after recent gains, shares could be a worthwhile portfolio addition for income-seeking investors.
