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
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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
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