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Republic Bancorp, Inc.2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 1 2025 ANNUAL R E V I E W STRENGTHENING FINANCIAL LIVES 2 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW ” CEO Letter ................................................................................................................... 1 2025 in Review .................................................................................................. 2-5 Our History ............................................................................................................ 6-7 Financial Highlights ........................................................................................ 8-9 Our Giving in Action .................................................................................... 10-11 Our Leadership ...............................................................................................12-13 Our Family of Companies ........................................................................ 14-15 Cover photo credit: Stock Studios Photography 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. This document should be read in conjunction with Arrow’s Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Form 10-K) and other filings with the Securities and Exchange Commission. CEO Letter As we look ahead, 2026 holds special meaning as we celebrate our 175th anniversary. With the announcement of our agreement to acquire Adirondack Bank, pending regulatory approvals, we are building on our proud history and positioning our company for an even more promising future.” As we look back on 2025, I am proud to share a year defined by meaningful transformation, exceptional performance and a renewed sense of shared purpose. This was our first full year operating as Arrow Bank, and together we delivered results that reflect both the strength of our strategy and the dedication of the people who bring it to life. In July, we successfully completed the integration of our former subsidiary banks during “One Bank Weekend” and officially launched our unified brand. Years in the making, this effort brought our teams, systems and identities together under one name, one mission and one shared commitment to serving our customers and communities. This unification strengthened our foundation, and the results speak for themselves. In 2025, Arrow delivered record operating performance, achieving net income of $44.0 million, or $2.65 per share, 50% growth in earnings per share, net interest margin expansion to 3.19%, tangible book value growth of more than 10% and a return of average assets of 1.00%. In the fourth quarter of 2025, return of average assets exceeded 1.20%, underscoring the momentum that carries us into 2026. These achievements reflect disciplined execution across the bank and the daily efforts of our extraordinary team. Our commitment to the communities we serve also reached new heights. In 2025, we surpassed $1 million in total giving for the first time, contributing $1.05 million to 424 organizations, a 40% increase in corporate contributions. Our team also showed up in remarkable ways with 329 employees volunteering 13,622 hours, supporting 706 organizations throughout our footprint. These efforts reflect who we are at our core. As we look ahead, 2026 holds special meaning as we celebrate our 175th anniversary. Few institutions reach this milestone, and even fewer do so with the same spirit of innovation, resilience and service that defines Arrow. With the announcement of our agreement to acquire Adirondack Bank, pending regulatory approvals, we are building on our proud history and positioning our company for an even more promising future. To our employees, thank you for your dedication and commitment. To our customers and shareholders, thank you for your trust and support. With a unified brand, a strong financial position and a team committed to excellence, we are well-positioned to build on this year’s momentum. David S. DeMarco President and CEO 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 1 2025 2025 IN REVIEW In 2025, we fully stepped into our future as Arrow Bank, unified, energized and focused on delivering exceptional results for our customers, communities and shareholders. From record financial performance to historic milestones and meaningful community impact, this year marked a defining chapter in our 175-year story. SOLID RESULTS This year was an exceptional financial year for Arrow. We delivered record operating results, including net income of $44 million and 50% growth in earnings per share. Net interest margin expanded to a record 3.19%, tangible book value grew by more than 10% and return on average assets was 1.00%. Arrow Bank received a 5-Star Superior rating from BauerFinancial, Inc., the nation’s premier bank rating firm. Arrow Bank has earned this designation for 75 consecutive quarters, securing its prominent position as an “Exceptional Performance Bank.” Additionally, we were Voted No. 1 Best Bank by The Post- Star readers in the 2025 Best of the Region. These results reflect disciplined execution and the successful completion of our bank system integration. With significant momentum entering 2026, we are well-positioned to continue building long-term value for our shareholders. ONE BANK. ONE ARROW. 2025 marked our first full year operating as Arrow Bank, following the successful completion of One Bank Weekend in July, a milestone that unified our systems, teams and operations. Unification strengthened our ability to serve customers seamlessly across our footprint while preserving the local relationships that define us. Throughout the year, we launched a comprehensive brand education campaign to ensure customers and communities understand who we are and what Arrow Bank represents: one name, one mission and one commitment to exceptional service. ONE BANK WEEKEND JULY 18-20 While our brand has evolved, the people behind it remain the same trustworthy professionals dedicated to our customers and communities. 2 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW Our newly renovated Queensbury branch. $44 MILLION net income in 2025 and 50% growth in earnings per share 3.19% net interest margin expansion 10% tangible book value growth 1.00% return on average assets INVESTING IN OUR BRANCH NETWORK Our branches remain central to the Arrow experience. In 2025, we completed a full renovation of our Queensbury branch, creating a modern, welcoming environment designed to enhance customer experience. We will continue to invest thoughtfully in our locations to ensure our branches reflect the strength of our brand and provide the best possible environment for personalized service. ADVANCING TECHNOLOGY Behind the scenes, 2025 was a transformational year for technology. One Bank Weekend unified our bank systems, enabling greater efficiency, consistency and scalability across the organization. We also launched Digital Wallet, available on Apple Pay® , Google Pay™ or Samsung Wallet®, giving customers enhanced convenience and flexibility in how they manage and access their accounts. Our digital presence continues to grow. In 2025, we achieved 2.25 million website sessions, a 23% increase year over year. We also expanded our social media presence with the launch of our Instagram, Facebook and YouTube channels consolidated for Arrow Bank, strengthening how we connect, educate and engage with customers and communities. 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 3 Arrow Volunteer Day in Lake George. New York. SAFER BANKING, STRONGER COMMUNITIES Protecting our customers remains a top priority. In 2025, our unified arrowbank.com launched with an expanded fraud education center, offering accessible tools and resources to help customers stay informed. Fraud prevention is also a key pillar of our social media strategy, where we regularly share timely alerts, tips and educational content. Through proactive monitoring, enhanced security measures and ongoing customer outreach, we remain committed to safer banking, together. EXPANDING WEALTH AND INSURANCE SOLUTIONS Growing our Wealth Management and Insurance businesses remains a key strategic priority, and 2025 marked meaningful progress in both areas. Following the July 2024 acquisitions of assets from A&B Agency, Inc., our Upstate Agency team successfully integrated the new book of business while maintaining 100% client retention. This achievement reflects the strength of our relationships, the professionalism of our advisors and the seamless service our clients expect. At the same time, our Wealth Management team continued to expand its reach, providing personalized financial planning, investment management and retirement services to individuals, families and businesses across our footprint. As part of our unified Arrow Bank strategy, we are enhancing collaboration across business lines to better identify opportunities, deepen relationships and deliver comprehensive financial solutions. By strengthening these service areas, we are building long-term value for clients while diversifying revenue and supporting sustainable growth. Where do you want to go today? START HERE! Build My Assets Wealth management services are not FDIC insured; no bank guarantee; may lose value. 4 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW Inaugural 2025 Arrow Internship Program. BUILDING THE NEXT GENERATION In 2025, we launched the Arrow Internship Program, welcoming a group of emerging professionals into our organization. The program provides hands-on experience, mentorship and meaningful exposure to the banking industry, while strengthening our long-term talent pipeline and commitment to workforce development. GREAT TEAM, GREAT IMPACT Our results are powered by our people. In 2025, 330 employees, or 57% of our team, volunteered 13,705 hours, supporting 706 organizations across our footprint. We surpassed $1 million in total giving for the first time in our history, contributing $1,054,048 to 424 organizations, a 40% increase in corporate giving. Nearly half of our contributions supported CRA- eligible initiatives focused on financial empowerment, housing, workforce development and essential needs. In the fourth quarter, our Thankful Campaign supported youth mentoring programs, and we quickly mobilized $38,000 in emergency SNAP-related food relief donations through our branches to assist local food pantries. These efforts reflect our deep commitment to strengthening the communities we serve. HONORING LEGACY After 24 years of service, we celebrated the retirement of Dave Kaiser, Senior Executive Vice President, Chief Credit Officer, whose leadership and dedication have left a lasting mark on our organization. We thank Dave for his years of service and meaningful contributions to Arrow’s continued success. We also recognized the retirement of Gary Dake from the Arrow Financial Corporation Board of Directors at our 2025 Annual Meeting, following more than two decades of dedicated service to Arrow and our former subsidiary banks. We thank Gary for his many contributions and lasting impact on our organization, and to show our appreciation he was named Director Emeritus. In 2025, we began preparing to celebrate an extraordinary milestone, our 175th anniversary in 2026. This moment reflects the strength of our history, the dedication of our people and the trust of the communities we serve. As we honor our legacy, we look ahead with confidence to the future we continue to build together. 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 5 HISTORY OUR HISTORY Throughout 2026, the Arrow Family of Companies will mark its 175th anniversary through a series of meaningful initiatives that celebrate its history, recognize the contributions of its teammates and highlight the strong relationships it has built within the communities it serves. OUR fonding+frst 100years in Glens Fals Glens Falls Bank opened Broke ground at for business in a newly 250 Glen Street constructed building on – our current Ridge Street. headquarters. 1851 1949 1932 Changed name to Glens Falls National Bank and Trust Company. 6 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW EXPANSION, MODERNIZATION and groing the family 1981 Glens Falls National Bank went public on NASDAQ as GFAL. 1999 Surpassed $1 billion in assets. 2018 Consolidated our insurance business into the Upstate Agency brand. 1983 1988 2024 Formed Arrow Bank Corporation and trading began on NASDAQ as AROW. Formed Saratoga National Bank and Trust Company and expanded footprint. Bought first insurance agency. Reached $2 billion in assets. 2004 2012 2021 Topped $4 billion in assets. Unified banking subsidiaries to form The year-long celebration will reflect the company’s Arrow Bank National enduring commitment to community partnership, Association. customer service and continued growth. 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 7 2025 FINANCIAL 2025 FINANCIAL HIGHLIGHTS Arrow delivered steady financial performance by growing loans, expanding our net interest margin and actively managing our balance sheet. Net Income: $44.0 million Total Loans: $3.5 billion, up 1.7% Total Deposits: $3.9 billion, up 2.9% Total Assets: $4.4 billion, up 3.2% Total Shareholders' Equity: $431.9 million, up 7.7% Return on Average Equity: 10.66% Return on Average Assets: 1.00% Current Quarterly $0.30 Cash Dividend: Book Value Per Share: $26.26 Diluted Earnings per Share: $2.65 For a full view of our 2025 financial performance, visit arrowfinancial.com For detailed financial results, please refer to our Form 10K for the year ended December 31, 2025, as well as our earnings releases and investor presentations for 2025 at arrowfinancial.com. Comparisons are to the December 31, 2024 balances. 8 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW PERFORMANCE $3,688 $3,939 $3,550 As of December 31 ($ in Millions) $3,498 $3,828 2021 2022 2023 2024 2025 DEPOSITS PERFORMANCE COMPARISIONS $1.77 $2.86 $2.65 $2.92 For the 12 Months Ended December 31* $1.77 2021 2022 2023 2024 2025 DILUTED EARNINGS PER SHARE As of December 31 ($ in Millions) $4,170 $4,028 $3,970 $4,306 $4,446 2021 2022 2023 2024 2025 ASSETS $1.06 $0.96 $1.03 For the 12 Months Ended December 31* $1.09 $1.14 2021 2022 2023 2024 2025 CASH DIVIDENDS PAID PER SHARE $22.42 $26.26 $21.81 $20.74 $23.94 2021 2022 2023 2024 2025 $380 $432 $371 $354 $401 2021 2022 2023 2024 2025 BOOK VALUE PER SHARE SHAREHOLDERS’ EQUITY As of December 31* As of December 31 ($ in Millions) *Per share amounts have been restated for stock dividends distributed. 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 9 IN ACTION OUR GIVING IN ACTION We’re so proud to serve you and our communities. EMPLOYEE 330 VOLUNTEERS NON-PROFITS SUPPORTED 706 MORE THAN MILLION DONATED IN THE $4.3 LAST SEVEN YEARS INCLUDING $122,688 $1,054,048 FROM EMPLOYEE DONATED TO OUR COMMUNITIES CONTRIBUTIONS HOURS UP 13% FROM 2024 LOGGED 13,705 Learn more: arrowbank.com/caring 10 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW IN THE COMMUNITY OUR EMPLOYEES IN THE COMMUNITY From Casual for a Cause days to donation drives and team volunteer events, we show our dedication throughout the year. 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 11 LEADERSHIP OUR LEADERSHIP Executive Team David S. DeMarco President and CEO Penko K. Ivanov Senior Executive Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer Michael Jacobs Executive Vice President and Chief Information Officer Brooke M. Pancoe Executive Vice President and Chief Human Resources Officer Andrew J. Wise Senior Executive Vice President and Chief Risk Officer Marc J. Yrsha Senior Executive Vice President and Chief Banking 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® • 2025 ANNUAL REVIEW Board of Directors Tenée R. Casaccio, AIA (Chair) Managing Principal JMZ Architects and Planners, PC Mark L. Behan Chairman and Founder Behan Communications, Inc. Gregory J. Champion Chief Legal Officer Syncromune, Inc. James M. Dawsey President MLB Construction Services, LLC David S. DeMarco President and CEO Arrow Financial Corporation Dr. Kris Duffy Retired President SUNY Adirondack Darrin Jahnel CEO and Co-Founder Jahnel Group David G. Kruczlnicki Retired President and CEO Glens Falls Hospital Elizabeth A. Miller President and CEO Miller Mechanical Services, Inc. Philip Morris CEO Proctors Collaborative Raymond F. O’Conor Chairman and Retired President and CEO Saratoga National Bank Colin L. Read, PhD Professor of Economics/Finance SUNY Plattsburgh Daniel J. White Retired Managing Partner Herbert O. Carpenter John J. Carusone, Jr. Michael B. Clarke Gary C. Dake Mary-Elizabeth T. FitzGerald Elizabeth O’Connor Little David L. Moynehan John J. Murphy Doris E. Ornstein William L. Owens Directors Emeriti KPMG LLP Albany 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 13 OUR FAMILY OF OUR FAMILY OF COMPANIES 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. View of Arrow campus in downtown Glens Falls, New York. Part of the Arrow Family of Companies, Arrow Bank National Association is a commercial bank headquartered in Glens Falls, New York, serving 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. 14 | ARROW FINANCIAL CORPORATION® • 2025 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 580 staff members, strive to deliver an exceptional customer experience across all lines of business. They make our achievements and financial results possible! 2025 ANNUAL REVIEW • ARROW FINANCIAL CORPORATION® | 15 | ARROW FINANCIAL CORPORATION® • 2025 ANNUAL REVIEW arrowfinancial.com 16
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