Arrow Financial in Glens Falls, N.Y., reported lower earnings that included margin pressure, a securities loss and a gain from selling Visa stock.
The $4.2 billion-asset company said in a press release that its fourth-quarter profit fell by 36% from a year earlier, to $7.7 million.
Net interest income declined by 16% to $25.6 million. The net interest margin compressed by 55 basis points to 2.53%.
Arrow sold $110 million of securities at a $9.2 million loss, reinvesting the proceeds in higher-yielding assets. The company said the moves should increase its annual interest income run-rate by more than $3 million
The company offset the securities losses by selling nearly 28,000 shares of Visa Class B shares for a $9.3 million pretax gain.