Arrow Reports 1st Quarter Net Income of $13.5 Million, or $0.82 per Share, and Declares 2nd Quarter Dividend of $0.30 per Share

Published: 2026-04-30 08:02:17 ET AROW

Published on 04/30/2026 at 08:02 am EDT

GLENS FALLS, N.Y., April 30, 2026 /PRNewswire/ -- Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or the "Company") announced financial results for the three-month period ended March 31, 2026. Reported net income for the first quarter of 2026 was $13.5 million and fully diluted earnings per share ("EPS") was $0.82, versus net income of $14.0 million and EPS of $0.85 for the fourth quarter of 2025.

The Board of Directors of Arrow declared a quarterly cash dividend of $0.30 per share; payable May 26, 2026 to shareholders of record as of May 12, 2026.

This quarter's results include approximately $790 thousand ($0.03 per share) of non-core merger expenses related to the announced acquisition of Adirondack Bancorp, Inc. based in Utica, New York. Excluding the merger expenses, Arrow achieved record operating results of $0.85 for the first quarter of 2026. Pending regulatory approvals, the transaction is expected to close early in the third quarter of 2026 and will add approximately $950 million in assets and 19 new branch locations.

This Earnings Release and related commentary should be read in conjunction with the Company's April 30, 2026 Form 8-K and related First Quarter 2026 Investor Presentation, which can also be found on Arrow's website: arrowfinancial.com/documents/investor-presentations.

Arrow President and CEO David S. DeMarco:

"As we celebrate our 175th anniversary, building on the strong year-end momentum, the Arrow team delivered exceptional financial results for the first quarter of 2026. We achieved strong net interest margin expansion as well as a return on average assets close to 1.30% on an operating basis. Credit performance was even better with non-performing loans dipping to 13 basis points. During the first quarter, we also announced the acquisition of Adirondack Bank, which is expected to close in the third quarter of 2026. We look forward to expanding our market with this high-quality, low-cost deposit franchise, adding approximately $950 million to our balance sheet. We expect the transaction to provide significant EPS accretion in 2027 and beyond. Arrow is well positioned to continue to deliver strong results for its shareholders while continuing to execute on its strategic initiatives to build a premier banking franchise for its customers and the communities it serves."

First-Quarter Highlights and Key Metrics

Income Statement

Three Months Ended

(Dollars in Thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Interest and Dividend Income

$ 53,794

$ 54,610

$ 50,366

Interest Expense

17,664

19,467

19,009

Net Interest Income

36,130

35,143

31,357

Average Earning Assets(A)

4,222,574

4,302,305

4,143,939

Average Interest-Bearing Liabilities

3,244,709

3,280,856

3,184,196

Average Yield on Earning Assets(A)

5.17 %

5.04 %

4.93 %

Average Cost of Interest-Bearing Liabilities

2.21

2.35

2.42

Net Interest Spread

2.96

2.69

2.51

Net Interest Margin

3.47

3.24

3.07

Net Interest Margin - FTE

3.48

3.25

3.08

(A) Includes Nonaccrual Loans.

Balance Sheet

Additional Commentary

——————

About Arrow: 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, a full-service commercial bank, and Upstate Agency, LLC, a comprehensive insurance agency.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible book value, tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent net interest margin and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by Arrow from time to time are useful in evaluating Arrow's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."

Safe Harbor Statement: The information contained in this earnings release may contain statements that are not historical in nature but rather are based on management's beliefs, assumptions, expectations, estimates and projections about the future. These statements can sometimes be identified by Arrow's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, geopolitical events, difficulties in managing the Arrow's growth, competition, changes in law or the regulatory environment, risks relating to the announced merger with Adirondack Bancorp, Inc. and changes in general business and economic trends. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This earnings release should be read in conjunction with Arrow's Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the SEC.

____________________

EPS, efficiency ratio and ROA excluding merger-related expenses are non-GAAP measures. See reconciliation on Note 5 to the Selected Quarterly Information

FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 2 to the Selected Quarterly Information.

Retail deposits exclude wholesale funding sources

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts - Unaudited)

Three Months Ended

March 31,2026

December 31,2025

March 31,2025

INTEREST AND DIVIDEND INCOME

Interest and Fees on Loans

$ 47,126

$ 47,087

$ 44,550

Interest on Deposits at Banks

1,675

2,598

1,621

Interest and Dividends on Investment Securities:

Fully Taxable

4,529

4,500

3,608

Exempt from Federal Taxes

464

425

587

Total Interest and Dividend Income

53,794

54,610

50,366

INTEREST EXPENSE

Interest-Bearing Checking Accounts

2,100

2,117

1,803

Savings Deposits

8,716

9,722

9,483

Time Deposits over $250,000

1,196

1,562

1,811

Other Time Deposits

5,436

5,846

5,529

Borrowings

—

167

Junior Subordinated Obligations Issued to

Unconsolidated Subsidiary Trusts

169

173

169

Interest on Financing Leases

Total Interest Expense

17,664

19,467

19,009

NET INTEREST INCOME

36,130

35,143

31,357

Provision for Credit Losses

548

846

5,019

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

35,582

34,297

26,338

NON-INTEREST INCOME

Income From Fiduciary Activities

2,713

2,771

2,535

Fees for Other Services to Customers

2,727

2,854

2,600

Insurance Commissions

2,113

2,050

1,826

Net Gain (Loss) on Securities

145

(127)

317

Net Gain on Sales of Loans

290

246

101

Other Operating Income

640

474

460

Total Non-Interest Income

8,628

8,268

7,839

NON-INTEREST EXPENSE

Salaries and Employee Benefits

14,922

14,309

13,555

Occupancy Expenses, Net

2,459

1,881

2,022

Technology and Equipment Expense

5,052

5,152

5,087

FDIC Assessments

585

563

670

Other Operating Expense

3,847

3,899

4,711

Total Non-Interest Expense

26,865

25,804

26,045

INCOME BEFORE PROVISION FOR INCOME TAXES

17,345

16,761

8,132

Provision for Income Taxes

3,860

2,748

1,822

NET INCOME

$ 13,485

$ 14,013

$ 6,310

Average Shares Outstanding:

Basic

16,382

16,390

16,665

Diluted

16,403

16,413

16,673

Per Common Share:

Basic Earnings

$ 0.82

$ 0.85

$ 0.38

Diluted Earnings

0.82

0.85

0.38

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts - Unaudited)

March 31,2026

December 31, 2025

ASSETS

Cash and Due From Banks

$ 29,102

$ 29,132

Interest-Earning Deposits at Banks

256,504

185,051

Investment Securities:

Available-for-Sale at Fair Value

518,803

495,868

Held-to-Maturity (Fair Value of $65,321 at March 31, 2026and $66,569 at December 31, 2025)

65,646

66,975

Equity Securities

5,742

5,597

Other Investments

4,375

4,372

Loans

3,438,966

3,453,093

Allowance for Credit Losses

(34,055)

(34,322)

Net Loans

3,404,911

3,418,771

Premises and Equipment, Net

59,561

59,433

Goodwill

23,789

Other Intangible Assets, Net

1,692

1,741

Other Assets

151,894

155,133

Total Assets

$ 4,522,019

$ 4,445,862

LIABILITIES

Noninterest-Bearing Deposits

721,734

722,374

Interest-Bearing Checking Accounts

898,168

862,192

Savings Deposits

1,618,309

1,557,638

Time Deposits over $250,000

140,899

155,802

Other Time Deposits

634,829

641,463

Total Deposits

4,013,939

3,939,469

Borrowings

4,265

Junior Subordinated Obligations Issued to Unconsolidated

Subsidiary Trusts

20,000

Finance Leases

4,908

4,929

Other Liabilities

38,764

45,347

Total Liabilities

4,081,876

4,014,010

STOCKHOLDERS' EQUITY

Preferred Stock, $1 Par Value; 1,000,000 Shares Authorizedat March 31, 2026 and December 31, 2025 (none issued)

—

Common Stock, $1 Par Value: 30,000,000 Shares Authorized; 22,066,559 Shares Issued; 16,526,929 and 16,445,342 Shares Outstanding at March 31, 2026 and December 31, 2025)

22,067

Additional Paid-in Capital

414,431

414,506

Retained Earnings

110,804

102,271

Accumulated Other Comprehensive Loss

(4,764)

(4,037)

Treasury Stock, at Cost (5,539,630 Shares at March 31, 2026and 5,621,217 Shares at December 31, 2025)

(102,395)

(102,955)

Total Stockholders' Equity

440,143

431,852

Total Liabilities and Stockholders' Equity

$ 4,522,019

$ 4,445,862

Arrow Financial Corporation

Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Quarter Ended

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Net Income

$ 13,485

$ 14,013

$ 12,825

$ 10,805

$ 6,310

Share and Per Share Data:

Period End Shares Outstanding

16,527

16,445

16,438

16,484

16,670

Basic Average Shares Outstanding

16,382

16,390

16,402

16,545

16,665

Diluted Average Shares Outstanding

16,403

16,413

16,406

16,551

16,673

Basic Earnings Per Share

$ 0.82

$ 0.85

$ 0.77

$ 0.65

$ 0.38

Diluted Earnings Per Share

0.82

0.85

0.77

0.65

0.38

Cash Dividend Per Share

0.30

0.29

0.28

Selected Quarterly Average Balances:

Interest-Earning Deposits at Banks

$ 183,252

$ 260,806

$ 200,251

$ 145,473

$ 146,023

Investment Securities

598,817

596,994

574,080

582,380

591,841

Loans

3,440,505

3,444,505

3,424,784

3,415,140

3,406,075

Deposits

3,928,761

4,002,221

3,913,721

3,849,093

3,825,124

Other Borrowed Funds

29,181

29,203

30,539

33,579

48,375

Stockholders' Equity

438,846

425,042

413,058

406,529

404,394

Total Assets

4,439,833

4,499,195

4,399,815

4,332,339

4,324,917

Return on Average Assets, annualized

1.23 %

1.24 %

1.16 %

1.00 %

0.59 %

Return on Average Equity, annualized

12.46 %

13.08 %

12.32 %

10.66 %

6.33 %

Return on Average Tangible Equity, annualized 1

13.23 %

13.92 %

13.13 %

11.38 %

6.76 %

Average Earning Assets

$ 4,222,574

$ 4,302,305

$ 4,199,115

$ 4,142,993

$ 4,143,939

Average Paying Liabilities

3,244,709

3,280,856

3,193,789

3,191,906

3,184,196

Interest Income

53,794

54,610

53,598

51,573

50,366

Tax-Equivalent Adjustment 2

123

114

121

148

155

Interest Income, Tax-Equivalent 2

53,917

54,724

53,719

51,721

50,521

Interest Expense

17,664

19,467

19,040

19,009

Net Interest Income

36,130

35,143

34,131

32,533

31,357

Net Interest Income, Tax-Equivalent 2

36,253

35,258

34,252

32,681

31,512

Net Interest Margin, annualized

3.47 %

3.24 %

3.22 %

3.15 %

3.07 %

Net Interest Margin, Tax-Equivalent, annualized 2

3.48 %

3.25 %

3.24 %

3.16 %

3.08 %

Efficiency Ratio Calculation: 3

Non-Interest Expense

$ 26,865

$ 25,804

$ 25,433

$ 25,652

$ 26,045

Less: Intangible Asset Amortization

Net Non-Interest Expense

$ 26,793

$ 25,730

$ 25,357

$ 25,572

$ 25,964

Net Interest Income, Tax-Equivalent

$ 36,253

$ 35,257

$ 34,252

$ 32,681

$ 31,512

Non-Interest Income

8,628

8,268

8,716

7,609

7,839

Less: Net Gain (Loss) on Securities

145

(127)

392

(40)

317

Net Gross Income

$ 44,736

$ 43,652

$ 42,576

$ 40,330

$ 39,034

Efficiency Ratio

59.89 %

58.94 %

59.56 %

63.41 %

66.52 %

Period-End Capital Information:

Total Stockholders' Equity (i.e. Book Value)

$ 440,143

$ 431,852

$ 417,687

$ 408,506

$ 404,409

Book Value per Share

26.63

26.26

25.41

24.78

24.26

Goodwill and Other Intangible Assets, net

25,481

25,530

25,594

25,659

25,743

Tangible Book Value per Share 1

25.09

24.71

23.85

23.23

22.72

Capital Ratios:4

Tier 1 Leverage Ratio

10.02 %

9.68 %

9.66 %

9.64 %

9.61 %

Common Equity Tier 1 Capital Ratio

13.30 %

13.01 %

13.07 %

12.73 %

12.59 %

Tier 1 Risk-Based Capital Ratio

13.93 %

13.64 %

13.71 %

13.37 %

13.23 %

Total Risk-Based Capital Ratio

15.04 %

14.76 %

14.86 %

14.51 %

14.48 %

Arrow Financial Corporation

Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Footnotes:

Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, and Return on Tangible Equity exclude goodwill and other intangible assets, net from total equity. These are non-GAAP financial measures, which Arrow believes provide investors with information that is useful in understanding its financial performance.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Total Stockholders' Equity (GAAP)

$ 440,143

$ 431,852

$ 417,687

$ 408,506

$ 404,409

Less: Goodwill and Other Intangible assets, net

25,481

25,530

25,594

25,659

25,743

Tangible Equity (Non-GAAP)

$ 414,662

$ 406,322

$ 392,093

$ 382,847

$ 378,666

Period End Shares Outstanding

16,527

16,445

16,438

16,484

16,670

Tangible Book Value per Share (Non-GAAP)

$ 25.09

$ 24.71

$ 23.85

$ 23.23

$ 22.72

Net Income

13,485

14,013

12,825

10,805

6,310

Return on Tangible Equity (Net Income/Tangible Equity - Annualized)

13.23 %

13.92 %

13.13 %

11.38 %

6.76 %

Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of annualized tax-equivalent net interest income to average earning assets. This is also a non-GAAP financial measure, which Arrow believes provides investors with information that is useful in understanding its financial performance.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Interest Income (GAAP)

$ 53,794

$ 54,610

$ 53,598

$ 51,573

$ 50,366

Add: Tax-Equivalent adjustment (Non-GAAP)

123

114

121

148

155

Interest Income - Tax Equivalent (Non-GAAP)

$ 53,917

$ 54,724

$ 53,719

$ 51,721

$ 50,521

Net Interest Income (GAAP)

$ 36,130

$ 35,143

$ 34,131

$ 32,533

$ 31,357

Add: Tax-Equivalent adjustment (Non-GAAP)

123

114

121

148

155

Net Interest Income - Tax Equivalent (Non-GAAP)

$ 36,253

$ 35,257

$ 34,252

$ 32,681

$ 31,512

Average Earning Assets

$ 4,222,574

$ 4,302,305

$ 4,199,115

$ 4,142,993

$ 4,143,939

Net Interest Margin (Non-GAAP)*

3.48 %

3.25 %

3.24 %

3.16 %

3.08 %

Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of non-interest expense to net gross income (which equals tax-equivalent net interest income plus non-interest income, as adjusted).

For the current quarter, all of the regulatory capital ratios as well as the Total Risk-Weighted Assets are calculated in accordance with bank regulatory capital rules. The March 31, 2026 CET1 ratio listed in the tables (i.e., 13.30%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%). Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Total Risk Weighted Assets

$ 3,180,782

$ 3,182,240

$ 3,095,225

$ 3,121,451

$ 3,143,547

Common Equity Tier 1 Capital

423,139

414,050

404,426

397,432

395,900

Common Equity Tier 1 Ratio

13.30 %

13.01 %

13.07 %

12.73 %

12.59 %

Non-GAAP Financial Measure Reconciliation: Net Income and Net Non-Interest Expense adjusted for non-core expenses. Non-core expenses include merger-related expenses, which are related to the announced acquisition of Adirondack Bancorp, Inc., and unification expenses, which are related to the system conversion and operational merger of the Company's two banking subsidiaries during the year ended December 31, 2025. EPS, efficiency ratio, and ROA are presented on an adjusted basis to reflect these exclusions. These are non-GAAP financial measures, which Arrow believes provides investors with information that is useful in understanding its financial performance.

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Net Income

$ 13,485

$ 14,013

$ 12,825

$ 10,805

$ 6,310

Non-Core Expenses:

Merger-Related Expenses

790

—

Unification Expenses

—

543

1,134

600

Less: Tax Benefit

(174)

—

(119)

(249)

(132)

Net Non-Core Expenses (Non-GAAP)

616

—

424

885

468

Core Net Income (Non-GAAP)

$ 14,101

$ 14,013

$ 13,249

$ 11,690

$ 6,778

Net Non-Interest Expense

$ 26,793

$ 25,730

$ 25,357

$ 25,572

$ 25,964

Non-Core Expenses:

Merger-Related Expenses

790

—

Unification Expenses

—

543

1,134

600

Core Net Non-Interest Expense (Non-GAAP)

$ 26,003

$ 25,730

$ 24,814

$ 24,438

$ 25,364

Core Earnings Per Share (Non-GAAP)

$ 0.85

$ 0.80

$ 0.70

$ 0.41

Core Return on Average Assets (Non-GAAP)

1.29 %

1.24 %

1.20 %

1.08 %

0.64 %

Core Efficiency Ratio (Non-GAAP)

58.13 %

58.94 %

58.28 %

60.60 %

64.98 %

* Quarterly ratios have been annualized.

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)

Quarter Ended:

March 31, 2026

March 31, 2025

Interest

Rate

Interest

Rate

Average

Income/

Earned/

Average

Income/

Earned/

Balance

Expense

Paid

Balance

Expense

Paid

Interest-Earning Deposits at Banks

$ 183,252

$ 1,675

3.71 %

$ 146,023

$ 1,621

4.50 %

Investment Securities:

Fully Taxable

536,293

4,529

3.42

499,903

3,608

2.93

Exempt from Federal Taxes

62,524

464

3.01

91,938

587

2.59

Loans (1)

3,440,505

47,126

5.56

3,406,075

44,550

5.30

Total Earning Assets (1)

4,222,574

53,794

5.17

4,143,939

50,366

4.93

Allowance for Credit Losses

(34,370)

(33,691)

Cash and Due From Banks

30,253

31,515

Other Assets

221,376

183,154

Total Assets

$ 4,439,833

$ 4,324,917

Deposits:

Interest-Bearing Checking Accounts

$ 859,054

2,100

0.99

$ 840,571

1,803

0.87

Savings Deposits

1,570,598

8,716

2.25

1,515,961

9,483

2.54

Time Deposits of $250,000 or More

147,425

1,196

3.29

186,159

1,811

3.95

Other Time Deposits

638,451

5,436

3.45

593,130

5,529

3.78

Total Interest-Bearing Deposits

3,215,528

17,448

2.20

3,135,821

18,626

2.41

Borrowings

4,265

—

23,378

167

2.90

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts

20,000

169

3.43

20,000

169

3.43

Finance Leases

4,916

3.88

4,997

3.81

Total Interest-Bearing Liabilities

3,244,709

17,664

2.21

3,184,196

19,009

2.42

Noninterest-Bearing Deposits

713,233

689,303

Other Liabilities

43,045

47,024

Total Liabilities

4,000,987

3,920,523

Stockholders' Equity

438,846

404,394

Total Liabilities and Stockholders' Equity

$ 4,439,833

$ 4,324,917

Net Interest Income

$ 36,130

$ 31,357

Net Interest Spread

2.96 %

2.51 %

Net Interest Margin

3.47 %

3.07 %

(1) Includes Nonaccrual Loans.

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)

Quarter Ended:

March 31, 2026

December 31, 2025

Interest

Rate

Interest

Rate

Average

Income/

Earned/

Average

Income/

Earned/

Balance

Expense

Paid

Balance

Expense

Paid

Interest-Earning Deposits at Banks

$ 183,252

$ 1,675

3.71 %

$ 260,806

$ 2,598

3.95 %

Investment Securities:

Fully Taxable

536,293

4,529

3.42

537,088

4,500

3.32

Exempt from Federal Taxes

62,524

464

3.01

59,906

425

2.81

Loans (1)

3,440,505

47,126

5.56

3,444,505

47,087

5.42

Total Earning Assets (1)

4,222,574

53,794

5.17

4,302,305

54,610

5.04

Allowance for Credit Losses

(34,370)

(34,288)

Cash and Due From Banks

30,253

25,827

Other Assets

221,376

205,351

Total Assets

$ 4,439,833

$ 4,499,195

Deposits:

Interest-Bearing Checking Accounts

$ 859,054

2,100

0.99

$ 850,602

2,117

0.99

Savings Deposits

1,570,598

8,716

2.25

1,584,844

9,721

2.43

Time Deposits of $250,000 or More

147,425

1,196

3.29

173,996

1,562

3.56

Other Time Deposits

638,451

5,436

3.45

642,211

5,847

3.61

Total Interest-Bearing Deposits

3,215,528

17,448

2.20

3,251,653

19,247

2.35

Borrowings

4,265

—

4,266

—

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts

20,000

169

3.43

20,000

173

3.43

Finance Leases

4,916

3.88

4,937

3.78

Total Interest-Bearing Liabilities

3,244,709

17,664

2.21

3,280,856

19,467

2.35

Noninterest-Bearing Deposits

713,233

750,568

Other Liabilities

43,045

42,729

Total Liabilities

4,000,987

4,074,153

Stockholders' Equity

438,846

425,042

Total Liabilities and Stockholders' Equity

$ 4,439,833

$ 4,499,195

Net Interest Income

$ 36,130

$ 35,143

Net Interest Spread

2.96 %

2.69 %

Net Interest Margin

3.47 %

3.24 %

(1) Includes Nonaccrual Loans.

Arrow Financial Corporation

Consolidated Financial Information

(Dollars in Thousands - Unaudited)

Quarter Ended:

3/31/2026

12/31/2025

Loan Portfolio

Commercial Loans

$ 169,599

$ 165,729

Commercial Real Estate Loans

811,770

818,259

Subtotal Commercial Loan Portfolio

981,369

983,988

Consumer Loans

1,071,543

1,076,007

Residential Real Estate Loans

1,386,054

1,393,098

Total Loans

$ 3,438,966

$ 3,453,093

Allowance for Credit Losses

Allowance for Credit Losses, Beginning of Quarter

$ 34,322

$ 34,176

Loans Charged-off

(1,574)

(1,477)

Less Recoveries of Loans Previously Charged-off

759

777

Net Loans Charged-off

(815)

(700)

Provision for Credit Losses

548

846

Allowance for Credit Losses, End of Quarter

$ 34,055

$ 34,322

Nonperforming Assets

Nonaccrual Loans

$ 3,802

$ 6,415

Loans Past Due 90 or More Days and Accruing

621

2,040

Loans Restructured and in Compliance with Modified Terms

—

Total Nonperforming Loans

4,423

8,455

Repossessed Assets

657

280

Other Real Estate Owned

—

Total Nonperforming Assets

$ 5,080

$ 8,735

Key Asset Quality Ratios

Net Loans Charged-off to Average Loans,

Quarter-to-date Annualized

0.10 %

0.08 %

Provision for Credit Losses to Average Loans,

Quarter-to-date Annualized

0.06 %

0.10 %

Allowance for Credit Losses to Period-End Loans

0.99 %

Allowance for Credit Losses to Period-End Nonperforming Loans

769.95 %

405.94 %

Nonperforming Loans to Period-End Loans

0.13 %

0.24 %

Nonperforming Assets to Period-End Assets

0.11 %

0.20 %

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SOURCE Arrow Financial Corporation