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NEWS RELEASE ARROW Financial Corporation 250 Glen Street Glens Falls , NY 12801 NASDAQⓇ Symbol : " AROW " Website : arrowfinancial.com Media Contact : Dori McDannold Tel : ( 518 ) 415-4313 Arrow Reports $ 13.3 million in Net Income and Diluted EPS of $ 0.85 in Q1 Key profitability ratios were strong in the first quarter with return on average assets ( ROA ) of 1.45 % and return on average equity ( ROE ) of 15.81 % . First - quarter provision for credit losses was ( $ 648 ) thousand , due to improving economic forecasts . Deposits were $ 3.5 billion on March 31 , 2021 , up $ 218.9 million from the previous quarter . Over $ 70 million of additional Small Business Administration Paycheck Protection Program loans were funded in the first quarter of 2021 , with over $ 210 million from inception of the program . GLENS FALLS , N.Y. ( April 27 , 2021 ) - Arrow Financial Corporation ( NasdaqGS® - AROW ) announced operating results for the three - month period ended March 31 , 2021. Net income for the first quarter of 2021 was $ 13.3 million , compared to $ 8.1 million in the first quarter of 2020. Net interest income increased to $ 26.2 million in the first quarter of 2021 , compared to $ 23.0 million for the comparable quarter of 2020 . Annualized key profitability ratios remained strong , as measured by a return on average equity ( ROE ) of 15.81 % and a return on average assets ( ROA ) of 1.45 % for the first quarter , compared to 10.66 % and 1.03 % , respectively , for the prior year quarter . " Arrow delivered a very strong first quarter . We continue to grow core deposits and provide support for our small business community with another $ 70 million in Paycheck Protection Program ( PPP ) loans , " said Arrow President and CEO Thomas J. Murphy . " While the COVID - 19 pandemic is ongoing , we had a very positive start to 2021 coupled with signs of broader economic improvement . Looking ahead , I believe our business and team are well - positioned to meet the changing needs of our customers and communities . " The following expands on our first quarter financial results : COVID - 19 Response : In the first quarter , Arrow's banking and insurance locations temporarily paused walk - in access to lobbies in response to a rise in community COVID - 19 cases . Full access was restored in mid - March and we continue to use safety measures such as required face coverings , social distancing and personal protective equipment , including shields and hand sanitizing stations , along with frequent cleanings . Also in the first quarter , Arrow reopened its PPP online portal for a new round of funding and saw continued demand from our customers . As of March 31 , 2021 , we had originated more than $ 212.8 million in PPP loans for more than 1,600 small businesses , $ 70.1 million of which occurred in the first quarter of 2021 . Arrow continues to monitor the impact of the pandemic on our business and closely watch local COVID - 19 levels . Currently , remote work is encouraged whenever feasible for our employees , work - related travel remains paused and in - person meetings have been minimized . Finally , Arrow is proud to share that its two banks were recently recognized as " Top Pandemic Performers " in a Rivel Banking Benchmark study of the Northeastern United States . Glens Falls National Bank ranked eighth in the state and Saratoga National Bank was in the top 25 based on customer feedback about 2020 pandemic performance . 1