Arrow Financial Corp. reported net income of $5.7 million, or diluted earnings per share of $0.52, in the second quarter of 2010 ending June 30, 2010. The company earned net income of $4.9 million, or diluted earnings per share of $0.45, in the corresponding quarter of 2009.

Arrow Financial Corporation also reported a return on average assets of 1.22% and a return on average equity of 15.38% for the second quarter of 2010. Both these metrics were up substantially on a year over year basis from 2009.

Thomas L. Hoy, Chairman, the CEO of Arrow Financial Corporation, said, “We are pleased to report continued growth in operating earnings while maintaining both very strong asset quality and capital adequacy ratios. Our performance was led by a substantial increase in net interest income, resulting from an increase in the average level of earning assets but partially offset by a slight narrowing of our net interest margin.”

Arrow Financial Corporation has done well during the financial crisis and recession. The company reported non-performing assets of $4.5 million, or 0.24% of total assets, as of the end of the second quarter of 2010.

Arrow Financial Corporation is a bank holding company located in the upstate New York region. The holding company owns two banking subsidiaries – Glens Falls National Bank and Trust Company, and Saratoga National Bank and Trust Company.

Arrow Financial Corporation is also involved in asset management and insurance through its ownership of North Country Investment Advisers, Inc., Loomis & LaPann, Inc., and Capital Financial Group, Inc.

For more information on the company, go to www.arrowfinancial.com