Arrow in N.Y. sells securities for second time in a year

Arrow Financial in Glen Falls, N.Y., again restructured its securities portfolio.

The $4.4 billion-asset company disclosed in a regulatory filing that it sold $75 million of available-for-sale securities at a pretax loss of $3 million. Proceeds were used to buy higher-yielding available-for-sale securities.

It should take a little over a year to earn back the loss. The transaction is expected to improve Arrow’s net interest income by about $2.7 million going forward.

Arrow also disclosed that it incurred about $500,000 of professional and legal fees tied to combining its banks, along with $700,000 in chargeoffs tied to branding items and signage. The consolidation is expected to take place on Dec. 31.

Arrow sold $110 million of securities at a $9.2 million loss in the fourth quarter of 2023.