Arrow Financial Corp (NASDAQ: AROW)

Arrow Financial Corp operates as a bank holding company that owns Arrow Bank National Association. Through its banking subsidiary Arrow Financial Corp indirectly controls an insurance agency, a registered investment adviser, and a real estate investment trust. The company provides advisory and administrative services to its subsidiaries and coordinates policies and operations across the organization. As of the end of 2025 Arrow Financial Corp employed 578 full time workers, with 40 of those working in the insurance agency subsidiary. Arrow Financial Corp focuses its activities on the communities of upstate New York and Vermont, offering a broad range of commercial and consumer banking and financial products.

The primary source of revenue is interest income earned on the loan portfolio. The company also collects fees related to deposit accounts, payment processing, and other banking services. Commissions from the insurance agency subsidiary contribute to revenue, as do fees from the registered investment adviser for advisory and asset management services. Trust and estate administration services generate charges for individuals and for corporate pension, profit sharing and employee benefit plans. Periodic sales of residential real estate loans into the secondary market, mainly to Freddie Mac and other governmental agencies, produce revenue while the company often retains the servicing rights on those loans. Through an indirect lending program Arrow Financial Corp sources consumer automobile loans from a network of dealers in New York and Vermont, earning interest and fees on those loans, and it occasionally buys and sells participations in commercial loans, which typically represent less than 20% of outstanding commercial loans.

Arrow Financial Corp operates in a highly competitive environment that includes local commercial banks, savings banks, credit unions, internet based lenders, and the local offices of major regional and money center banks. In the mortgage lending arena the company faces competition from numerous mortgage originators whose activities are heavily influenced by the practices of government sponsored enterprises such as Fannie Mae and Freddie Mac. Non banking financial organizations, including insurance companies, securities firms, and finance companies, also offer products that resemble those provided by Arrow Financial Corp. The company distinguishes itself through a strong community focus, relationship based lending practices, and the ability to deliver a full suite of banking, insurance, investment, and trust services under one organization. Consistently strong capital ratios and a conservative approach to credit risk reinforce its competitive standing in the regional market.

Arrow Financial Corp serves individual consumers who seek deposit accounts, loans, insurance, and trust and estate services. Small and medium sized businesses form a significant portion of the loan customer base, receiving commercial and industrial financing as well as cash management services. The company works with an extensive network of automobile dealers throughout New York and Vermont to originate consumer auto loans through its indirect lending program. Trust and estate administration clients include individuals planning for retirement and corporations sponsoring pension, profit sharing, and employee benefit plans. While the filing does not list specific customer names, the overall base consists of households, businesses, and institutional clients within the company’s geographic footprint.