Arrow Financial Corporation announced consolidated unaudited earnings results for the fourth quarter and full year ended December 31, 2014. Net income for the fourth quarter of 2014 was $6.4 million, an increase of $585,000, or 10.1%, from net income of $5.8 million for the fourth quarter of 2013. Diluted earnings per share (EPS) for the quarter were $0.50, an increase of 8.7% from the comparable 2013 quarter, when diluted EPS was $0.46. Net interest income, on a tax-equivalent basis, increased $1.1 million, or 6.7%, in the fourth quarter of 2014, as compared to the fourth quarter of 2013, due primarily to an increase in the average level of interest-earning assets between the periods and a decrease in its cost of funds. Income before provision for income taxes was $9.241 million against $8.238 million a year ago.

For the year ended December 31, 2014, net income was a record $23.4 million, up 7.2% over net income of $21.8 million for 2013, while diluted EPS was a record $1.85, up 6.9% over $1.73 in 2013. Return on average equity and return on average assets were 11.79% and 1.07%, respectively, for the year ended December 31, 2014, as compared to 12.11% and 1.04%, respectively, for 2013. Net interest income was $61.094 million against $56.216 million a year ago. Income before provision for income taxes was $33.534 million against $30.874 million a year ago.