ANNUAL REVIEW 2024 It has been a year of remarkable strides and transformative growth for our company. Our unwavering commitment to serving our shareholders, customers and communities has been the driving force behind our success. David S. DeMarco President and CEO The information in this document may contain statements based on management’s beliefs, assumptions, expectations, estimates and projections about the future. Such "forward-looking statements," as defined in Section 21E of the Securities Exchange Act of 1934, as amended, involve a degree of uncertainty and attendant risk. Actual outcomes and results may differ, explicitly or by implication. We are not obliged to revise or update these statements to reflect unanticipated events. In conjunction with Arrow’s Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Form 10-K) and other filings with the Securities and Exchange Commission. 2 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Arrow Stakeholders: As we reflect on 2024, I’m proud to share the remarkable strides we’ve made together. This past year was transformational for our company, marked by significant achievements that have strengthened our foundation and brightened our future. A landmark moment was the unification of our two subsidiary banks, Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company, under the unified brand Arrow Bank National Association™, or Arrow Bank™. This strategic unification simplifies the bank’s brand identity, strengthens our market presence and positions the bank for future growth while maintaining the same local, personalized service that’s been our hallmark. Behind Arrow Bank’s new name are the same great people and the same trusted services our customers have come to know and expect. The leadership team will remain unchanged, ensuring stability and continuity. Our growth trajectory continued with the acqui- sition of a new bank branch in Whitehall, New York, and the assets of a local insurance agency under our subsidiary, Upstate Agency, LLC. These expansions widen our service area, enhance our offerings and provide more value for our share- holders. Our reported 2024 net income of $29.7 million, a slight decrease from $30.1 million in 2023, and earnings per share of $1.77, consistant with the prior year, tell only part of the story. In 2024, we achieved mid-single digit loan growth, enhanced our net interest margin and took a proactive approach to balance sheet management. We continued enhancing share- holder value through share repurchases and an increased quarterly cash dividend of $0.28 per share. We were named to the prestigious Piper Sandler Sm-All Stars: Class of 2024 list, and before unification, our subsidiary banks continued their legacy of financial strength by maintaining our 5-Star “Exceptional Performance” ratings from Bauer Financial for the 70th and 62nd consec- utive quarters. We notably appointed longtime board member Tenée R. Casaccio as our new Board Chair, making her our first female Board Chair. Additionally, we expanded the expertise of our Board of Directors by welcoming four new members: James M. Dawsey, Dr. Kristine D. Duffy, Philip Morris and Daniel J. White. Their local knowledge and profes- sional experience will be invaluable as we navi- gate future opportunities. Our long-standing commitment to giving back to our communities continued in 2024. As noted toward the end of this review, we demonstrated an impressive commitment to our communi- ties through financial contributions and volun- teer efforts. Our company and team members donated $776,000, supporting 605 community organizations across our eight-county service area. Our volunteer efforts expanded with 261 volunteers logging an impressive 11,902 hours of service, both reflecting a 5 percent increase from 2023. None of these accomplishments would have been possible without the knowledge, passion and dedication of our exceptional team. Their unwavering commitment to our mission has been the driving force behind our continued success. To our shareholders, thank you for your invest- ment in Arrow Financial Corporation. As we move forward, we will build on this year’s momentum, striving for excellence in all we do. David S. DeMarco President and CEO 3 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW SOLID RESULTS This year, we delivered steady financial performance while making strategic moves to position ourselves for future success. With net income of $29.7 million and earnings per share of $1.77, we maintained strength despite a challenging interest rate environment. We grew loans by mid-single digits, expanded our net interest margin and actively managed our balance sheet. Our disciplined capital manage- ment allowed us to enhance shareholder value through share repurchases and an increased cash dividend. Additionally, we were named to the Piper Sandler Sm-All Stars: Class of 2024 list, rec- ognizing top-performing small-cap banks. Before unification, our subsidiary banks continued their 5-Star “Exceptional Performance” ratings from Bauer Financial for the 70th and 62nd consecutive quarters, respectively, rein- forcing our stability and reliability. In 2024, we took significant steps to unify our brand, expand our presence, enhance security and deliver strong financial performance—all while keeping our customers, communities and shareholders at the heart of everything we do. Below, you’ll find updates on our progress, followed by some financial highlights. 2024 IN REVIEW 4 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW ARROW BANK: ONE NAME, ONE VISION In 2024, we took a historic step forward by unifying our subsidiary banks, Glens Falls National Bank and Saratoga National Bank under our new name, Arrow Bank. While our name has changed, everything our customers trust and value remains the same: the same great team, the same trusted services and the same longtime commit- ment to our customers and communities. This unification reflects a long-awaited business goal of unifying the banks to allow us to operate as one company working together to deliver excep- tional banking services. Our unification strengthens our presence in northeastern New York, providing a seamless expe- rience while honoring the deep-rooted legacies of Glens Falls National Bank and Saratoga National Bank. With a modernized brand and a continued focus on relationship-driven banking, we are better positioned than ever to serve our customers across the region through Arrow Bank’s 38 branches. Customers will continue to see familiar faces at their local branches, rely on the products and services they trust and experience the strong community sup- port that defines the Arrow Family of Companies. As Arrow Bank, we are unified under one bank name, strengthening our ability to serve our customers and communities for generations to come. Our efforts to promote and educate our customers and prospects about the Arrow Bank rebrand will continue in 2025. GROWING OUR BUSINESS Strategic growth remained a key focus in 2024. We expanded our presence in Washington County with the acquisition of a Whitehall, New York branch, adding $37.5 million in deposits and $3 million in loans. This strengthens our commit- ment to the community, where we now operate nine branches. We also grew our insurance business by acquiring select assets of A&B Agency, Inc., strengthening Upstate Agency’s position as a leading insur- ance provider. These acquisitions expand our reach while maintaining the personalized, consultative approach that sets us apart. With these strategic moves, we are well- positioned for continued growth and to meet evolving customer and community needs. ADVANCING TECHNOLOGY Throughout our company, we are always researching and implementing ways to enhance our technology. This year, we were pleased to offer our customers access to more than 50,000 ATMs across the United States and interna- tionally through the Allpoint ATM Network. With this partnership, customers no longer need to rely solely on bank branch ATMs to make simple with- drawals or deposits without incurring fees. Additionally, after years of behind-the -scenes planning, our Wealth Management Team converted to a new enhanced customer platform, that offers a personalized experience and a user-friendly design with intuitive navigation. We’ll continue our efforts to offer best-in-class digital services to our customers in 2025. 5 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW SAFER BANKING, TOGETHER Fraud threats continue to evolve, and we remain committed to protecting our customers. In 2024, we expanded fraud prevention tools, enhanced security measures and continued educating customers on how to detect and prevent scams. To further strengthen these efforts, we established a dedicated fraud department solely focused on monitoring, preventing and addressing fraud-related issues for our customers and our communities. Our team works tirelessly behind the scenes to safeguard accounts, help customers one-on-one and ensure safer banking for everyone. SOCIALLY CONSCIOUS PERFORMANCE At Arrow, responsible business practices are at the core of everything we do. We foster an inclusive workplace that sup- ports employee growth and well-being while remaining deeply committed to strengthening our communities through financial literacy, volunteer- ism and local partnerships. Sustainability is also a priority, with investments in energy-efficient infra- structure and digital banking solutions that reduce our environmental impact. With a strong governance framework and sound risk management, we uphold high standards of accountability, data security and ethical business practices. At Arrow, doing what’s right isn’t just a commitment, it’s how we do business. EXPANDING THE ARROW BOARD We are pleased to welcome Tenée R. Casaccio, as our new Board Chair, along with four new board members, James M. Dawsey, Dr. Kristine D. Duffy, Philip Morris and Daniel J. White. Their diverse expertise in financial and operational management, strategic planning, board governance, community engagement, bank auditing and financial oversight will help guide our continued growth and strategic direction. We look forward to the contributions of our new Board Chair and Board members as we build on Arrow’s legacy of strength, stability and innovation. The members of our full Board of Directors are listed on page 12. GREAT TEAM, GREAT RESULTS Our success in 2024 is a direct result of the incredible talent and dedication within our team. Their hard work and commit- ment to our goals have been essential in achiev- ing the milestones we’ve celebrated this year. It is their continuous effort and shared vision that has propelled us forward, enabling us to reach new heights. As we look to the future, we are excited to continue building on this foundation, knowing that our team will remain at the heart of everything we do. Thank you to everyone at Arrow for your invaluable contributions to our sustained success. IN MEMORY OF MICHAEL F. MASSIANO, JR. We honor the memory of Michael F. Massiano, Jr., former Chairman, President and CEO of Arrow Financial Corporation and Glens Falls National Bank and Trust Company. Mike dedicated more than 50 years to our organization, beginning as a teller in 1956 and advancing to lead our company from 1979 to 1989. His vision helped shape our success, and he continued to serve on the Board for a decade after retiring in 1997. A lifelong Glens Falls, New York resident, Mike was deeply committed to his community, contributing to numerous charitable organizations. His leadership and integ- rity leave a lasting impact on Arrow. We are grateful for Mike’s legacy and his unwavering dedication to our mission. 6 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Our new name, brand and look are an investment in the future of our customers, our employees and our communities. The debut of our new Arrow Bank branding and signage at the Main Office branch at 250 Glen Street in downtown Glens Falls, New York. Photos: Best Frame Forward. 6 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW 7 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Our History 1851 Glens Falls Bank opened for business in a newly constructed building on Ridge Street. 1932 Changed name to Glens Falls National Bank and Trust Company. 1949 Broke ground at 250 Glen Street— our current headquarters. 1981 Glens Falls National Bank went public on NASDAQ as GFAL. 1983 Formed Arrow Bank Corporation (now Arrow Financial Corporation) and trading began on NASDAQ as AROW. 1988 Formed Saratoga National Bank and Trust Company and expanded footprint. 1999 Surpassed $1 billion in assets. 2004 Bought first insurance agency. 2012 Reached $2 billion in assets. 2018 Consolidated our insurance business into the Upstate Agency brand. 2021 Topped $4 billion in assets. 2024 Unified banking subsidiaries to form Arrow Bank National Association. 8 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW 2024 Financial Highlights Arrow delivered steady financial performance by growing loans, expanding our net interest margin and actively managing our balance sheet. Net Income: $29.7 million Total Loans: $3.4 billion, up 5.8% Total Deposits: $3.8 billion, up 3.8% Total Assets: $4.3 billion, up 3.3% Total Shareholders' Equity: $400.9 million, up 5.6% Return on Average Equity: 7.72% Return on Average Assets: 0.70% Current Quarterly $0.28 Cash Dividend: Book Value Per Share: $23.94 Diluted Earnings per Share: $1.77 Our 2024 results contained several one-time, non-core items, which impacted results. Non-core items included acquisition-related expenses, residual expenses related to the 2022 Form 10-K and 1Q 2023 Form 10-Q filing delays, bank unification costs and the repositioning of the securities portfolio. For detailed financial results, please refer to our Form 10K for December 31, 2024 as well as our earnings release and investor presentations for 2024 at arrowfinancial.com. For a full view of our 2024 financial performance, visit arrowfinancial.com 9 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Performance Comparisons *Per share amounts have been restated for stock dividends distributed. $1.77 $2.86 $2.41 $2.92 For the 12 Months Ended December 31* DILUTED EARNINGS PER SHARE $1.77 2020 2021 2022 2023 2024 $1.06 $0.93 $0.96 $1.03 For the 12 Months Ended December 31* $1.09 2020 2021 2022 2023 2024 As of December 31 ($ in Millions) $4,170 $3,689 $4,028 $3,970 $4,306 2020 2021 2022 2023 2024 $3,688 $3,235 $3,550 As of December 31 ($ in Millions) $3,498 $3,828 2020 2021 2022 2023 2024 As of December 31* $22.42 $19.72 $21.81 $20.74 $23.94 2020 2021 2022 2023 2024 As of December 31 ($ in Millions) $380 $334 $371 $354 $401 2020 2021 2022 2023 2024 Our 2024 results contained several one-time, non-core items, which impacted results. Non-core items included acquisition-related expenses, residual expenses related to the 2022 Form 10-K and 1Q 2023 Form 10-Q filing delays, bank unification costs, bank unification costs and the repositioning of the securities portfolio. For detailed financial results, please refer to our Form 10K for December 31, 2024 as well as our earnings release and investor presentations for 2024 at arrowfinancial.com. CASH DIVIDENDS PAID PER SHARE BOOK VALUE PER SHARE SHAREHOLDERS’ EQUITY ASSETS DEPOSITS 10 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Community Contributions OUR 2024 GIVING IN ACTION $776,000 11,902 DONATED TO OUR COMMUNITIES INCLUDING $108,702 from employee contributions Learn more: arrowbank.com/caring 261 EMPLOYEE VOLUNTEERS 605 NON-PROFITS SUPPORTED More than $3.4 million donated in the last six years. HOURS LOGGED UP 5% FROM 2023 11 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Our Leadership Executive Team Marc J. Yrsha Senior Executive Vice President and Chief Banking Officer Andrew J. Wise Senior Executive Vice President and Chief Risk Officer Brooke Pancoe Executive Vice President and Chief Human Resources Officer David D. Kaiser Senior Executive Vice President and Chief Credit Officer David S. DeMarco President and CEO Penko Ivanov Senior Executive Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer Michael Jacobs Executive Vice President and Chief Information Officer Our Mission To strengthen financial lives within our communities through the power of care, capability, commitment and collaboration. Our Vision To build meaningful and long- lasting relationships with our customers, employees and shareholders. 12 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Raymond F. O’Conor Chairman and Retired President and CEO Saratoga National Bank Colin L. Read, PhD Professor of Economics/Finance SUNY Plattsburgh Board of Directors Our Leadership Mark L. Behan Chairman and Founder Behan Communications, Inc. Tenée R. Casaccio, AIA President JMZ Architects and Planners, PC (Chair) Gary C. Dake President Stewart’s Shops Corp. David G. Kruczlnicki Retired President and CEO Glens Falls Hospital Elizabeth A. Miller President and CEO Miller Mechanical Services, Inc. David S. DeMarco President and CEO Arrow Financial Corporation Herbert O. Carpenter John J. Carusone, Jr. Michael B. Clarke Mary-Elizabeth T. FitzGerald Elizabeth O’Connor Little David L. Moynehan John J. Murphy Doris E. Ornstein William L. Owens In Memoriam Herbert A. Heineman, Jr. Michael F. Massiano, Jr. (Chairman Emeritus) Richard J. Reisman, DMD Directors Emeriti Gregory J. Champion Chief Legal Officer Syncromune, Inc. James M. Dawsey President MLB Construction Services, LLC Dr. Kris Duffy President SUNY Adirondack Philip Morris CEO Proctors Collaborative Daniel J. White Retired Managing Partner KPMG LLP Albany Part of the Arrow Family of Companies, Arrow Bank National Association is a commercial bank headquartered in Glens Falls, New York, servicing eight counties in northeastern New York. Arrow Bank operates 38 banking offices and provides a wide range of financial products and services to individuals and businesses, including banking, wealth management and insurance. Other Arrow Financial Corporation subsidiaries include: Upstate Agency, LLC, an insurance agency that specializes in personal and business insurance, as well as group health and employee benefits. Arrow Financial Corporation is a holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Arrow Bank National Association, a full-service commercial bank, and Upstate Agency, LLC, a comprehensive insurance agency. Our Family of Companies 13 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW 14 | ARROW FINANCIAL CORPORATION® • 2024 ANNUAL REVIEW Our Footprint Arrow Bank Upstate Agency, LLC Arrow Financial Corporation is a holding company headquartered in Glens Falls, New York, providing banking, insurance and wealth management services from 38 branches and nine insurance offices in eight counties from Plattsburgh to Albany. With a footprint of more than 160 miles along the eastern border of New York state, our companies reach a broad customer base including rural, urban and suburban areas from the Canadian border to the Hudson Valley. As of the 2020 Census, this service area includes a population of more than 1.1 million individuals, families and businesses. Our Arrow Team of more than 550 staff members, strive to deliver an exceptional customer experience across all lines of business. They make our achievements and financial results possible! Elizabethtown Warrensburg Chestertown Ticonderoga Schroon Lake Durkee St. Ticonderoga Drive-In Smithfi eld Blvd. Port Henry U.S. Ave. Schuylerville Cambridge Salem Argyle Kingsbury Fort Ann Fort Edward Greenwich Granville Main Office Queensbury Lake George South Glens Falls Lake Luzerne Broad St. Bay Road Exit 18 Whitehall Corinth Wilton Square Route 9 West Ave. Clifton Park Troy Latham Colonie Saratoga Springs Schenectady Rotterdam Saratoga Albany Rensselaer Schenectady Washington Warren Clinton Essex