ARROW FINANCIAL REPORTS 38% DROP IN INSURANCE EARNINGS

Glens Falls, NY-based, $1.84 billion-asset Arrow Financial Corp. reported insurance commissions generated by its agency, which specializes in selling and servicing group health plans, jumped 37.7% to $727,000, up from $528,000 in third quarter 2008, and comprised 18.3% of noninterest income, which climbed 28.8% to $3.98 million, up from $3.09 million a year ago, when the company wrote down $1.2 million in securities losses. Trust and investment fee income, like all other sources of fee income except insurance, decreased, falling 11.1% to $1.2 million, down from $1.35 million, to comprise 30.2% of noninterest income. Net interest income on a 3.79% net interest margin rose 0.9% to $14.78 million, up from $14.65 million, as loan loss provisions rose to $427,000, up from $253,000. Net income, bolstered by noninterest earnings, rose 2.0% to $5.1 million, up from $5.0 million in third quarter 2008. Arrow Financial Chairman, President and CEO Thomas Hoy said, “We are pleased to report that our conservative business model has again produced solid earnings.” In 2008, Arrow Financial reported $2.1 million in insurance brokerage income, which comprised 12.3% of its noninterest income. The company ranked 63rd in insurance brokerage earnings among U.S. bank holding companies (BHCs) with assets between $1 billion and $10 billion, according to the Michael