アローファイナンシャルの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report: July 23, 2025

(Date of earliest event reported)

ARROW FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)


New York	0-12507	22-2448962
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

250 Glen Street

Glens Falls

New York

12801

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:

518

745-1000

(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, Par Value $1.00 per share	AROW	NASDAQ Global Select Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company						☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act						☐

Item 2.02. Results of Operations and Financial Condition.

On July 24, 2025, Arrow Financial Corporation (the "Company") issued a press release containing unaudited financial information and accompanying discussion for the quarter ended June 30, 2025. A copy of this press release is furnished as Exhibit 99.1 to this report on Form 8-K.

Item 7.01. Regulation FD Disclosure.

On July 24, 2025, the Company made available certain presentation material (the "Second Quarter 2025 Investor Presentation"), which includes among other things, a review of financial results and trends through the period ended June 30, 2025. The furnished Second Quarter 2025 Investor Presentation should be read in conjunction with our Earnings Release for the quarter ended June 30, 2025.

A copy of the presentation material is included as Exhibit 99.2 to this current report on Form 8-K and is incorporated herein by reference.

The information furnished under this Report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 8.01. Other Events.

On July 23, 2025, the Board of Directors (the “Board”) of the Company declared a quarterly cash dividend of $0.29 per share payable August 25, 2025 to shareholders of record on August 11, 2025.

Additionally on July 23, 2025, the Board authorized management, in its discretion, to repurchase from time to time, in the open market or in privately negotiated transactions, up to an additional $5 million of Arrow common stock.

Item 9.01. Financial Statements and Exhibits.

Exhibits:

Exhibit No. Description

Exhibit 99.1 Arrow Financial Corporation Earnings Press Release dated July 24 , 2025

Exhibit 99.2 Arrow Financial Corporation First Quarter 2025 Investor Presentation dated July 24 , 2025

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		ARROW FINANCIAL CORPORATION
		Registrant

Date:	July 24, 2025	/s/ Penko Ivanov
		Penko Ivanov
		Chief Financial Officer

EX-99.1 2 ex99-earningsq22025.htm EX-99.1 Document


			250 Glen Street
			Glens Falls, NY 12801

			NASDAQ® Symbol: “AROW“
			Website: arrowfinancial.com

			Media Contact: Rachael Murray
			P: (518) 742-6505
			E: rachael.murray@arrowbank.com


			FOR IMMEDIATE RELEASE

Arrow Reports 2nd Quarter Net Income of $10.8 Million, or $0.65 per Share, and Declares 3rd Quarter Dividend of $0.29 per Share

GLENS FALLS, N.Y. (July 24, 2025) – Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or "the Company") announced financial results for the three-month period ended June 30, 2025. Reported net income for the second quarter of 2025 was $10.8 million and fully diluted earnings per share ("EPS") was $0.65, versus net income of $6.3 million and EPS of $0.38 for the first quarter of 2025.

The Board of Directors of Arrow declared a quarterly cash dividend of $0.29 per share, an increase of $0.01 or 3.6% from the prior quarter, payable August 25, 2025 to shareholders of record as of August 11, 2025.

This quarter's results include approximately $1.1 million ($0.05 per share) of non-core unification costs related to Arrow’s system conversion and operational merger of its two banking subsidiaries, which were successfully completed in July 2025.

This Earnings Release and related commentary should be read in conjunction with the Company's July 24, 2025 Form 8-K and related Second Quarter 2025 Investor Presentation, which can also be found on Arrow's website: arrowfinancial.com/documents/investor-presentations.

Arrow President and CEO David S. DeMarco:

"We delivered strong second-quarter results, including return on average assets reaching 1.00%, with net interest margin and other key metrics approaching our strong historic levels. Simultaneously, we recently successfully completed our bank unification by consolidating our multi-bank systems and bank software applications into a single core banking platform, the last major milestone in our rebrand to Arrow Bank. This was an important step on our path toward improving customer experience and gaining operational efficiencies, further solidifying our position as a premier community bank under a strong, single recognizable brand. Our amazing team worked incredibly hard to make this transition as easy as possible for our customers, and I want to extend my deepest appreciation for their unwavering commitment and care. As we look ahead, Arrow is poised to advance our strategic priorities and continue to deliver value for our communities and shareholders"

Second-Quarter Highlights and Key Metrics

•Net Income of $10.8 million (EPS of $0.65)

•Record Net Interest Income of $32.5 million

•Net Interest Margin improved to 3.15% (3.16% FTE1), up from 3.07% (3.08% FTE) in the prior quarter

1 FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.

•Return on Average Assets (ROA) improved to 1.00%

•Excluding unification related expenses, ROA was 1.08%

•Loan-to-Deposit ratio of 87.2%

•Quarter-end loan exit rates2 increased to 5.51% at June 30, 2025 vs. 5.45% at March 31, 2025

•Tangible Book Value per share increased to $23.23

•Repurchased $5.1 million of shares (196,497 shares at an average cost of $26.06 per share)

•Additional $5.0 million authorized for potential future share repurchases

Income Statement

•Net Income: Net income for the second quarter of 2025 was $10.8 million, increasing from $6.3 million in the first quarter of 2025.

◦Compared to the prior quarter, net income benefited from an increase of $1.2 million in net interest income, a decrease in the provision for credit losses of $4.4 million and a slight decrease in non-interest expense of $0.4 million.

•Net Interest Income: Net interest income for the second quarter of 2025 was $32.5 million, increasing 3.8% from the first quarter of 2025.

◦Total interest and dividend income was $51.6 million for the second quarter of 2025, an increase from $50.4 million in the first quarter of 2025. Interest expense for the second quarter of 2025 was $19.0 million, consistent with the first quarter of 2025.

•Net Interest Margin: Net interest margin, on an FTE basis, for the second quarter of 2025 increased to 3.16%, compared to 3.08% for the first quarter of 2025. The increase in net interest margin compared to the first quarter of 2025 was primarily the result of continued yield expansion on earning assets combined with the moderating cost of interest-bearing liabilities.


	Three Months Ended
	(Dollars in Thousands)
	June 30, 2025			March 31, 2025			June 30, 2024
Interest and Dividend Income	$	51,573		$	50,366		$	47,972



Interest Expense	19,040			19,009			20,820
Net Interest Income	32,533			31,357			27,152

Average Earning Assets(A)	4,142,993			4,143,939			4,083,813
Average Interest-Bearing Liabilities	3,191,906			3,184,196			3,127,417

Yield on Earning Assets(A)	4.99		%	4.93		%	4.72		%

Cost of Interest-Bearing Liabilities	2.39			2.42			2.68

Net Interest Spread	2.60			2.51			2.04


Net Interest Margin	3.15			3.07			2.67
Net Interest Margin - FTE	3.16			3.08			2.69




(A) Includes Nonaccrual Loans.

•Provision for Credit Losses: For the second quarter of 2025, the provision for credit losses was $0.6 million compared to $5.0 million in the first quarter of 2025. The sizeable quarter-over-quarter decrease in the second quarter provision reflects the recognition of a specific reserve on a large commercial loan participation in the first quarter of 2025.

•Non-Interest Income: Non-interest income for the three months ended June 30, 2025, was $7.6 million, a decrease from $7.8 million in the first quarter of 2025. Revenue related to wealth

2 The “loan exit rate” is the point in time interest rate in effect at the end of the reporting period.

management decreased from the prior quarter as a result of weaker overall market performance. Interchange fees improved in the second quarter from the linked quarter. Other operating income was negatively affected by small valuation adjustments to other assets.

•Non-Interest Expense: Non-interest expense for the second quarter of 2025 was $25.7 million, a decrease from $26.0 million in the first quarter of 2025. The second quarter of 2025 included unification expenses of approximately $1.1 million as compared to $0.6 million in the first quarter of 2025. The unification expenses were primarily comprised of project management and information technology costs related to the July 2025 system conversion. Arrow continues to focus on overall expense management.

•Provision for Income Taxes: The provision for income taxes and effective tax rate were $3.1 million and 22.2%, respectively, for the second quarter of 2025, and $1.8 million and 22.4%, respectively, for the first quarter of 2025.

Balance Sheet

•Total Assets: Total assets were $4.4 billion at June 30, 2025, a decrease of $34.2 million, or 0.8%, as compared to March 31, 2025. For the second quarter of 2025, overall change in the balance sheet was primarily attributable to fluctuations in cash balances, maturities of investments and growth in the loan portfolio.

•Investments: Total investments were $528.4 million as of June 30, 2025, a decrease of $24.6 million, or 4.4%, compared to March 31, 2025. The decrease from March 31, 2025 was driven primarily by paydowns and maturities. There were no credit quality issues related to the investment portfolio.

•Loans3: Total loans were $3.4 billion as of June 30, 2025. Loan growth for the second quarter of 2025 was $7.9 million. Loan growth was primarily driven by an increase in residential real estate loans and to a lesser extent by commercial loan relationships. Please see the loan detail included in the Consolidated Financial Information table on page 12.

•Allowance for Credit Losses: The allowance for credit losses was $34.2 million as of June 30, 2025, which represented 1.00% of loans outstanding, as compared to $37.8 million, or 1.11%, at March 31, 2025. The decrease in the allowance for credit losses was primarily driven by the recognition of a specific reserve of $3.75 million in the first quarter of 2025 and subsequent charge-off of the reserved loan balances during the second quarter. The remaining loan balance has been reclassified to Other Assets after the participating banks assumed control of the collateral properties and appointed a property manager to manage the day-to-day activities while exploring further options. The properties itself are being held in an unconsolidated LLC in which Arrow has an ownership interest equivalent to its rights under the former loan participation. As previously disclosed, the properties are generating positive cash flow and a majority is tenant occupied. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.49% for the three-month period ended June 30, 2025, as compared to 0.10% for the three-month period ended March 31, 2025. The increase was the result of the charge-off of the previously reserved commercial loan participation. Nonperforming assets were $7.0 million as of June 30, 2025, representing 0.16% of period-end assets, compared to 0.44% at March 31, 2025.

•Deposits: At June 30, 2025, deposit balances were $3.9 billion, a decrease of $38.8 million from March 31, 2025. The change from March 31, 2025 was primarily attributable to the seasonality of municipal deposits. Please refer to page 7 for further details related to deposits.

3 Excludes both $3.2 million fair value hedge adjustment at June 30, 2025 and $3.3 million fair value hedge adjustment at March 31, 2025.

•Capital: Total stockholders’ equity was $408.5 million at June 30, 2025, an increase of $4.1 million, or 1.0%, from March 31, 2025. The increase from March 31, 2025 was primarily attributable to net income of $10.8 million and other comprehensive income of $2.6 million offset by dividends of $4.7 million and share repurchases of $5.1 million and other stock-based activity. Arrow's regulatory capital ratios remain strong. As of June 30, 2025, Arrow's Common Equity Tier 1 Capital Ratio was 12.73% and Total Risk-Based Capital Ratio was 14.51%. Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report. The capital ratios of Arrow and its subsidiary bank continued to exceed the “well capitalized” regulatory standards.

Additional Commentary

•BauerFinancial Ratings: Arrow Bank National Association ("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 73 consecutive quarters, securing its prominent position as an “Exceptional Performance Bank.”

——————

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. Other subsidiaries include North Country Investment Advisers, Inc.

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 news 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 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. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with Arrow’s Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the SEC.

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts - Unaudited)


	Three Months Ended June 30,		Six Months Ended June 30,
	2025		2024		2025		2024
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans	$	45,600	$	42,141	$	90,150	$	82,517
Interest on Deposits at Banks	1,622		2,185		3,243		4,632
Interest and Dividends on Investment Securities:
Fully Taxable	3,790		3,009		7,398		6,195
Exempt from Federal Taxes	561		637		1,148		1,305
Total Interest and Dividend Income	51,573		47,972		101,939		94,649
INTEREST EXPENSE
Interest-Bearing Checking Accounts	1,941		1,903		3,744		3,544
Savings Deposits	9,367		10,571		18,850		20,801
Time Deposits over $250,000	1,726		1,869		3,537		3,842
Other Time Deposits	5,793		5,074		11,322		10,157

Borrowings	—		1,186		167		2,262
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	171		170		340		341
Interest on Financing Leases	42		47		89		95
Total Interest Expense	19,040		20,820		38,049		41,042
NET INTEREST INCOME	32,533		27,152		63,890		53,607
Provision for Credit Losses	594		775		5,613		1,392
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	31,939		26,377		58,277		52,215
NON-INTEREST INCOME
Income From Fiduciary Activities	2,398		2,451		4,933		4,908
Fees for Other Services to Customers	2,787		2,706		5,387		5,249
Insurance Commissions	1,804		1,662		3,630		3,344
Net (Loss) Gain on Securities	(40)		54		277		71
Net Gain on Sales of Loans	213		5		314		9
Other Operating Income	447		978		907		2,133
Total Non-Interest Income	7,609		7,856		15,448		15,714
NON-INTEREST EXPENSE
Salaries and Employee Benefits	14,086		13,036		27,641		25,929
Occupancy Expenses, Net	1,952		1,774		3,974		3,545
Technology and Equipment Expense	5,589		4,734		10,676		9,554
FDIC Assessments	649		698		1,319		1,413
Other Operating Expense	3,376		3,076		8,087		6,889
Total Non-Interest Expense	25,652		23,318		51,697		47,330
INCOME BEFORE PROVISION FOR INCOME TAXES	13,896		10,915		22,028		20,599
Provision for Income Taxes	3,091		2,311		4,913		4,335
NET INCOME	$	10,805	$	8,604	$	17,115	$	16,264
Average Shares Outstanding:
Basic	16,545		16,685		16,611		16,764
Diluted	16,551		16,709		16,618		16,789
Per Common Share:
Basic Earnings	$	0.65	$	0.52	$	1.03	$	0.97
Diluted Earnings	0.65		0.52		1.03		0.97

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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


	June 30, 2025		December 31, 2024
ASSETS
Cash and Due From Banks	$	40,976	$	27,422
Interest-Bearing Deposits at Banks	227,472		127,124
Investment Securities:
Available-for-Sale at Fair Value	447,678		463,111
Held-to-Maturity (Fair Value of $70,027 at June 30, 2025 and $96,586 at December 31, 2024)	70,828		98,261
Equity Securities	5,332		5,055
Other Investments	4,557		4,353
Loans	3,424,754		3,394,541
Allowance for Credit Losses	(34,191)		(33,598)
Net Loans	3,390,563		3,360,943
Premises and Equipment, Net	60,701		59,717
Goodwill	23,789		23,789
Other Intangible Assets, Net	1,870		2,058
Other Assets	140,953		134,515
Total Assets	$	4,414,719	$	4,306,348
LIABILITIES
Noninterest-Bearing Deposits	736,535		702,978
Interest-Bearing Checking Accounts	884,130		810,834
Savings Deposits	1,484,666		1,520,024
Time Deposits over $250,000	179,254		191,962
Other Time Deposits	644,745		602,132
Total Deposits	3,929,330		3,827,930
Borrowings	8,600		8,600


Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000
Finance Leases	4,969		5,005
Other Liabilities	43,314		43,912
Total Liabilities	4,006,213		3,905,447
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2025 and December 31, 2024	—		—
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued at June 30, 2025 and December 31, 2024)	22,067		22,067
Additional Paid-in Capital	413,880		413,476
Retained Earnings	84,970		77,215

Accumulated Other Comprehensive Loss	(10,889)		(18,453)
Treasury Stock, at Cost (5,582,833 Shares at June 30, 2025 and 5,323,638 Shares at December 31, 2024)	(101,522)		(93,404)
Total Stockholders’ Equity	408,506		400,901
Total Liabilities and Stockholders’ Equity	$	4,414,719	$	4,306,348

Arrow Financial Corporation

Selected Quarterly Information

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


Quarter Ended	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
Net Income	$	10,805		$	6,310		$	4,470		$	8,975		$	8,604





Share and Per Share Data:
Period End Shares Outstanding	16,484			16,670			16,743			16,734			16,723
Basic Average Shares Outstanding	16,545			16,665			16,718			16,710			16,685
Diluted Average Shares Outstanding	16,551			16,673			16,739			16,742			16,709
Basic Earnings Per Share	$	0.65		$	0.38		$	0.26		$	0.54		$	0.52
Diluted Earnings Per Share	0.65			0.38			0.27			0.53			0.52
Cash Dividend Per Share	0.28			0.28			0.28			0.27			0.27

Selected Quarterly Average Balances:
Interest-Bearing Deposits at Banks	$	145,473		$	146,023		$	233,469		$	154,937		$	159,336
Investment Securities	582,380			591,841			579,107			590,352			644,192
Loans	3,415,140			3,406,075			3,354,463			3,329,873			3,280,285
Deposits	3,849,093			3,825,124			3,847,691			3,672,128			3,678,957
Other Borrowed Funds	33,579			48,375			49,090			134,249			131,537
Stockholders' Equity	406,529			404,394			393,696			387,904			378,256
Total Assets	4,332,339			4,324,917			4,339,833			4,245,597			4,237,359
Return on Average Assets, annualized	1.00		%	0.59		%	0.41		%	0.84		%	0.82		%
Return on Average Equity, annualized	10.66		%	6.33		%	4.52		%	9.20		%	9.15		%
Return on Average Tangible Equity, annualized 1	11.38		%	6.76		%	4.84		%	9.79		%	9.74		%
Average Earning Assets	$	4,142,993		$	4,143,939		$	4,167,039		$	4,075,162		$	4,083,813
Average Paying Liabilities	3,191,906			3,184,196			3,185,215			3,085,066			3,127,417
Interest Income	51,573			50,366			50,901			49,443			47,972
Tax-Equivalent Adjustment 2	148			155			157			149			163
Interest Income, Tax-Equivalent 2	51,721			50,521			51,058			49,592			48,135
Interest Expense	19,040			19,009			21,214			21,005			20,820
Net Interest Income	32,533			31,357			29,687			28,438			27,152
Net Interest Income, Tax-Equivalent 2	32,681			31,512			29,844			28,587			27,315
Net Interest Margin, annualized	3.15		%	3.07		%	2.83		%	2.78		%	2.67		%
Net Interest Margin, Tax-Equivalent, annualized 2	3.16		%	3.08		%	2.85		%	2.79		%	2.69		%

Efficiency Ratio Calculation: 3
Non-Interest Expense	$	25,652		$	26,045		$	25,838		$	24,100		$	23,318
Less: Intangible Asset Amortization	80			81			89			78			40
Net Non-Interest Expense	$	25,572		$	25,964		$	25,749		$	24,022		$	23,278
Net Interest Income, Tax-Equivalent	$	32,681		$	31,512		$	29,844		$	28,587		$	27,315
Non-Interest Income	7,609			7,839			4,227			8,133			7,856

Less: Net Gain(loss) on Securities	(40)			317			(3,072)			94			54
Net Gross Income	$	40,330		$	39,034		$	37,143		$	36,626		$	35,117
Efficiency Ratio	63.41		%	66.52		%	69.32		%	65.59		%	66.29		%

Period-End Capital Information:
Total Stockholders' Equity (i.e. Book Value)	$	408,506		$	404,409		$	400,901		$	393,311		$	383,018
Book Value per Share	24.78			24.26			23.94			23.50			22.90
Goodwill and Other Intangible Assets, net	25,659			25,743			25,847			25,979			22,800
Tangible Book Value per Share 1	23.23			22.72			22.40			21.95			21.54

Capital Ratios:4

Tier 1 Leverage Ratio	9.64		%	9.61		%	9.60		%	9.78		%	9.74		%
Common Equity Tier 1 Capital Ratio	12.73		%	12.59		%	12.71		%	12.77		%	12.88		%
Tier 1 Risk-Based Capital Ratio	13.37		%	13.23		%	13.35		%	13.41		%	13.53		%
Total Risk-Based Capital Ratio	14.51		%	14.48		%	14.47		%	14.46		%	14.57		%

Arrow Financial Corporation

Selected Quarterly Information - Continued

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


Footnotes:



1.	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.
		6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	Total Stockholders' Equity (GAAP)	$	408,506		$	404,409		$	400,901		$	393,311		$	383,018
	Less: Goodwill and Other Intangible assets, net	25,659			25,743			25,847			25,979			22,800
	Tangible Equity (Non-GAAP)	$	382,847		$	378,666		$	375,054		$	367,332		$	360,218

	Period End Shares Outstanding	16,484			16,670			16,743			16,734			16,723
	Tangible Book Value per Share (Non-GAAP)	$	23.23		$	22.72		$	22.40		$	21.95		$	21.54
	Net Income	10,805			6,310			4,470			8,975			8,604
	Return on Tangible Equity (Net Income/Tangible Equity - Annualized)	11.38		%	6.76		%	4.84		%	9.79		%	9.74		%

2.	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.
		6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	Interest Income (GAAP)	$	51,573		$	50,366		$	50,901		$	49,443		$	47,972
	Add: Tax-Equivalent adjustment (Non-GAAP)	148			155			157			149			163
	Interest Income - Tax Equivalent (Non-GAAP)	$	51,721		$	50,521		$	51,058		$	49,592		$	48,135
	Net Interest Income (GAAP)	$	32,533		$	31,357		$	29,687		$	28,438		$	27,152
	Add: Tax-Equivalent adjustment (Non-GAAP)	148			155			157			149			163
	Net Interest Income - Tax Equivalent (Non-GAAP)	$	32,681		$	31,512		$	29,844		$	28,587		$	27,315
	Average Earning Assets	$	4,142,993		$	4,143,939		$	4,167,039		$	4,075,162		$	4,083,813
	Net Interest Margin (Non-GAAP)*	3.16		%	3.08		%	2.85		%	2.79		%	2.69		%

3.	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).

4.	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 June 30, 2025 CET1 ratio listed in the tables (i.e., 12.73%) 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.
		6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024

	Total Risk Weighted Assets	$	3,121,451		$	3,143,547		$	3,126,364		$	3,110,178		$	3,072,922
	Common Equity Tier 1 Capital	397,432			395,900			397,285			397,122			395,691
	Common Equity Tier 1 Ratio	12.73		%	12.59		%	12.71		%	12.77		%	12.88		%

* Quarterly ratios have been annualized.

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)


Quarter Ended:	June 30, 2025						June 30, 2024
			Interest		Rate				Interest		Rate
	Average		Income/		Earned/		Average		Income/		Earned/
	Balance		Expense		Paid		Balance		Expense		Paid
Interest-Bearing Deposits at Banks	$	145,473	$	1,622	4.47	%	$	159,336	$	2,185	5.52	%
Investment Securities:
Fully Taxable	496,614		3,790		3.06		530,869		3,009		2.28
Exempt from Federal Taxes	85,766		561		2.62		113,323		637		2.26
Loans (1)	3,415,140		45,600		5.36		3,280,285		42,141		5.17
Total Earning Assets (1)	4,142,993		51,573		4.99		4,083,813		47,972		4.72
Allowance for Credit Losses	(35,238)						(31,459)
Cash and Due From Banks	29,267						28,611
Other Assets	195,317						156,394
Total Assets	$	4,332,339					$	4,237,359
Deposits:
Interest-Bearing Checking Accounts	$	845,041	1,941		0.92		$	832,087	1,903		0.92
Savings Deposits	1,494,930		9,367		2.51		1,487,062		10,571		2.86
Time Deposits of $250,000 or More	179,980		1,726		3.85		172,655		1,869		4.35
Other Time Deposits	638,376		5,793		3.64		504,076		5,074		4.05
Total Interest-Bearing Deposits	3,158,327		18,827		2.39		2,995,880		19,417		2.61
Borrowings	8,601		—		—		106,502		1,186		4.48
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		171		3.43		20,000		170		3.42
Finance Leases	4,978		42		3.38		5,035		47		3.75
Total Interest-Bearing Liabilities	3,191,906		19,040		2.39		3,127,417		20,820		2.68
Noninterest-Bearing Deposits	690,766						683,077
Other Liabilities	43,138						48,609
Total Liabilities	3,925,810						3,859,103
Stockholders’ Equity	406,529						378,256
Total Liabilities and Stockholders’ Equity	$	4,332,339					$	4,237,359


Net Interest Income			$	32,533					$	27,152
Net Interest Spread					2.60	%					2.04	%
Net Interest Margin					3.15	%					2.67	%

(1) Includes Nonaccrual Loans.

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)


Quarter Ended:	June 30, 2025						March 31, 2025
			Interest		Rate				Interest		Rate
	Average		Income/		Earned/		Average		Income/		Earned/
	Balance		Expense		Paid		Balance		Expense		Paid
Interest-Bearing Deposits at Banks	$	145,473	$	1,622	4.47	%	$	146,023	$	1,621	4.50	%
Investment Securities:
Fully Taxable	496,614		3,790		3.06		499,903		3,608		2.93
Exempt from Federal Taxes	85,766		561		2.62		91,938		587		2.59
Loans (1)	3,415,140		45,600		5.36		3,406,075		44,550		5.30
Total Earning Assets (1)	4,142,993		51,573		4.99		4,143,939		50,366		4.93
Allowance for Credit Losses	(35,238)						(33,691)
Cash and Due From Banks	29,267						31,515
Other Assets	195,317						183,154
Total Assets	$	4,332,339					$	4,324,917
Deposits:
Interest-Bearing Checking Accounts	$	845,041	1,941		0.92		$	840,571	1,803		0.87
Savings Deposits	1,494,930		9,367		2.51		1,515,961		9,483		2.54
Time Deposits of $250,000 or More	179,980		1,726		3.85		186,159		1,811		3.95
Other Time Deposits	638,376		5,793		3.64		593,130		5,529		3.78
Total Interest-Bearing Deposits	3,158,327		18,827		2.39		3,135,821		18,626		2.41
Borrowings	8,601		—		—		23,378		167		2.90
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		171		3.43		20,000		169		3.43
Finance Leases	4,978		42		3.38		4,997		47		3.81
Total Interest-Bearing Liabilities	3,191,906		19,040		2.39		3,184,196		19,009		2.42
Noninterest-Bearing Deposits	690,766						689,303
Other Liabilities	43,138						47,024
Total Liabilities	3,925,810						3,920,523
Stockholders’ Equity	406,529						404,394
Total Liabilities and Stockholders’ Equity	$	4,332,339					$	4,324,917


Net Interest Income			$	32,533					$	31,357
Net Interest Spread					2.60	%					2.51	%
Net Interest Margin					3.15	%					3.07	%

(1) Includes Nonaccrual Loans.

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)


Year to Date Period Ended:	June 30, 2025						June 30, 2024
			Interest		Rate				Interest		Rate
	Average		Income/		Earned/		Average		Income/		Earned/
	Balance		Expense		Paid		Balance		Expense		Paid
Interest-Bearing Deposits at Banks	$	145,746	$	3,243	4.49	%	$	168,894	$	4,632	5.52	%
Investment Securities:
Fully Taxable	498,250		7,398		2.99		540,704		6,195		2.30
Exempt from Federal Taxes	88,835		1,148		2.61		116,945		1,305		2.24
Loans (1)	3,410,632		90,150		5.33		3,258,063		82,517		5.09
Total Earning Assets (1)	4,143,463		101,939		4.96		4,084,606		94,649		4.66
Allowance for Credit Losses	(34,469)						(31,437)
Cash and Due From Banks	30,385						29,207
Other Assets	189,269						159,046
Total Assets	$	4,328,648					$	4,241,422
Deposits:
Interest-Bearing Checking Accounts	$	842,818	3,744		0.90		$	831,502	3,544		0.86
Savings Deposits	1,505,387		18,850		2.53		1,484,031		20,801		2.82
Time Deposits of $250,000 or More	183,053		3,537		3.90		174,991		3,842		4.42
Other Time Deposits	615,878		11,322		3.71		500,444		10,157		4.08
Total Interest-Bearing Deposits	3,147,136		37,453		2.40		2,990,968		38,344		2.58
Borrowings	15,949		167		2.11		101,743		2,262		4.47
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		340		3.43		20,000		341		3.43
Finance Leases	4,987		89		3.60		5,042		95		3.79
Total Interest-Bearing Liabilities	3,188,072		38,049		2.41		3,117,753		41,042		2.65
Noninterest-Bearing Deposits	690,039						695,171
Other Liabilities	45,069						49,648
Total Liabilities	3,923,180						3,862,572
Stockholders’ Equity	405,468						378,850
Total Liabilities and Stockholders’ Equity	$	4,328,648					$	4,241,422


Net Interest Income			$	63,890					$	53,607
Net Interest Spread					2.55	%					2.01	%
Net Interest Margin					3.11	%					2.64	%

(1) Includes Nonaccrual Loans.

Arrow Financial Corporation

Consolidated Financial Information

(Dollars in Thousands - Unaudited)


Quarter Ended:	6/30/2025			12/31/2024
Loan Portfolio
Commercial Loans	$	162,203		$	158,991
Commercial Real Estate Loans	808,166			796,365
Subtotal Commercial Loan Portfolio	970,369			955,356
Consumer Loans	1,109,272			1,118,981
Residential Real Estate Loans	1,345,113			1,320,204
Total Loans	$	3,424,754		$	3,394,541
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Quarter	$	37,771		$	31,262

Loans Charged-off	(5,062)			(1,333)
Less Recoveries of Loans Previously Charged-off	888			815
Net Loans Charged-off	(4,174)			(518)
Provision for Credit Losses	594			2,854
Allowance for Credit Losses, End of Quarter	$	34,191		$	33,598
Nonperforming Assets
Nonaccrual Loans	$	5,550		$	20,621
Loans Past Due 90 or More Days and Accruing	855			398
Loans Restructured and in Compliance with Modified Terms	12			20
Total Nonperforming Loans	6,417			21,039
Repossessed Assets	590			382
Other Real Estate Owned	—			76
Total Nonperforming Assets	$	7,007		$	21,497

Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized	0.49		%	0.06		%
Provision for Credit Losses to Average Loans, Quarter-to-date Annualized	0.07		%	0.34		%
Allowance for Credit Losses to Period-End Loans	1.00		%	0.99		%
Allowance for Credit Losses to Period-End Nonperforming Loans	532.82		%	159.69		%
Nonperforming Loans to Period-End Loans	0.19		%	0.62		%
Nonperforming Assets to Period-End Assets	0.16		%	0.50		%

Year-to-Date Period Ended:	6/30/2025			12/31/2024
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Year	$	33,598		$	31,265

Loans Charged-off	(6,613)			(5,895)
Less Recoveries of Loans Previously Charged-off	1,593			3,048
Net Loans Charged-off	(5,020)			(2,847)
Provision for Credit Losses	5,613			5,180
Allowance for Credit Losses, End of Period	$	34,191		$	33,598

Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Annualized	0.30		%	0.09		%
Provision for Loan Losses to Average Loans, Annualized	0.33		%	0.16		%

EX-99.2 3 q22025investorpresentati.htm EX-99.2 q22025investorpresentati

2Q 2025 Investor Presentation July 24, 2025

2 Safe Harbor This presentation may contain certain forward-looking statements about Arrow Financial Corporation (“Arrow” or the “Company”). Forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, as amended, include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the banking industry or securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged. We are not obligated to revise or update these statements to reflect unanticipated events. This document should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 10-K”), other filings with the SEC, and the second quarter 2025 earnings release issued July 24, 2025 (the “2Q Earnings Release”).

3 Table of Contents • 2Q 2025 Results and Performance Metrics • Non-Interest Income/Expense • Loans • Deposits/Funding Sources • Credit Quality • Investments • Capital Actions and Strategy • Overview and History

2Q 2025 Results

5 2Q25 Summary Financial information provided in this document is unaudited. Please refer to the 2Q25 Earnings Release for a reconciliation of any non-GAAP measures. 1Refer to 1Q25 Investor Presentation for more information on 1Q credit event Return on Average Assets 1.00% Earnings Per Share $0.65 FTE NIM 3.16% vs. 3.08% in 1Q Return on Average Equity 10.66% 3Q Dividend increase to $0.29 per share (+3.6% over 2Q) Tangible Book Value per Share $23.23 Continued, but slower NIM expansion in 2H25 Low NPLs post 1Q credit event1 – no further signs of material stress in portfolio In July 2025, we successfully completed the system conversation and operational merger of our two bank subsidiaries (“Unification”).

6 Highlights  Net income of $10.8 million, or $0.65 per share  FTE 2Q25 NIM of 3.16% vs. 3.08% for 1Q25  ROA of 1.00%; trending higher absent unification spend  Excluding 1Q credit event, net charge-offs were 0.04% for 2Q25 and 0.07% YTD  Efficiency Ratio lowered to 63.4%; Excluding non-core unification spend the ratio is 60.6%  2Q25 is last quarter with significant unification related spend  2Q25 $1.1 million (EPS - $0.05); YTD $1.7 million (EPS - $0.08)  2Q25 loan growth ~$8M, impacted by charge-off of previously reserved CRE participation  Consistent with 1Q25 after adjusting for impact of charge-off  In 2Q25, repurchased $5.1M of shares (~197K shares at avg. cost of $26.06 per share), YTD repurchases are $8.5 million (~324.5K shares at avg. cost of $26.23 per share) Headwinds/Opportunities  (-) Economic and policy uncertainty  (-) Federal Reserve staying on sidelines  (+) Liability sensitive balance sheet will benefit from rate cut(s) Other  In July 2025, additional $5.0 million authorized for potential future share repurchases  Total availability of $6.5M Financial information provided in this document is unaudited. Please refer to the 2Q25 Earnings Release for a reconciliation of any non-GAAP measures.

7 Investment Rationale • Continued expansion of Net Interest Margin • ROA on sustainable path to exceed 1% • Seeking M&A Opportunities • Absent M&A, committed to Return of Capital to Investors  Share repurchases (significant YTD activity and future purchases subject to Price/TBV target)  Announced dividend increase for 3Q’25 (+3.6%) • Diversified Revenue Sources  Core Banking (including expansion of residential loan sale activity resumed in 2H24)  Commercial, Residential, Consumer (Indirect Auto)  Wealth Management  Insurance • Tailwinds  Positive core operating leverage  Non-core items in rear-view mirror or winding down (Unification)

8 2Q 2025 Consolidated Financial Statements 1 Variances are rounded based on actual whole dollar amounts 2 Pre-tax, pre-provision net revenue per share is a non-GAAP metric and excludes provision for loan losses and income tax expense UNAUDITED Dollars in millions, except per share data Linked Quarter and Comparative YTD Income Statement 2Q25 1Q25 Fav/(Unfav) Var1 Total Interest Income $ 51.6 $ 50.4 1.2 Total Interest Expense 19.0 19.0 0.0 Net Interest Income 32.5 31.4 1.1 Non-Interest Income 7.6 7.8 (0.2) Non-Interest Expense 25.6 26.0 0.4 Pre-Tax, Pre-Provision Net Revenue2 $ 14.5 $ 13.2 1.3 Provision for Credit Losses $ 0.6 $ 5.0 4.4 Pre-Tax Income $ 13.9 $ 8.1 5.8 Income Tax Expense $ 3.1 $ 1.8 (1.3) Reported Net Income $ 10.8 $ 6.3 4.5 EPS $ 0.65 $ 0.38 0.27 Income Statement YTD 2Q25 YTD 2Q24 Fav/(Unfav) Var1 Total Interest Income $ 101.9 $ 94.6 7.3 Total Interest Expense 38.0 41.0 3.0 Net Interest Income 63.9 53.6 10.3 Non-Interest Income 15.4 15.7 (0.3) Non-Interest Expense 51.7 47.3 (4.4) Pre-Tax, Pre-Provision Net Revenue2 $ 27.6 $ 22.0 5.6 Provision for Credit Losses $ 5.6 $ 1.4 (4.2) Pre-Tax Income $ 22.0 $ 20.6 1.4 Income Tax Expense $ 4.9 $ 4.3 (0.6) Reported Net Income $ 17.1 $ 16.3 0.8 EPS $ 1.03 $ 0.97 0.06

9 2Q 2025 Consolidated Financial Statements 1 Variances rounded based on actual whole dollar amounts UNAUDITED Dollars in millions, except per share data Linked Quarter Balance Sheet 2Q25 1Q25 4Q24 2Q25 vs 1Q251 2Q25 vs 4Q241 Cash & Cash Equivalents $ 268.4 $ 301.4 $ 154.5 (33.0) 113.9 Investment Securities 528.4 553.0 570.8 (24.6) (42.4) Loans Receivable, net 3,390.6 3,379.1 3,360.9 11.5 29.7 All Other Assets 227.3 215.4 220.1 11.9 7.2 Total Assets $ 4,414.7 $ 4,448.9 $ 4,306.3 (34.2) 108.4 Total Deposits $ 3,929.3 $ 3,968.2 $ 3,827.9 (38.9) 101.4 Total Borrowings 33.6 33.6 33.6 0.0 0.0 Other Liabilities 43.3 42.7 43.9 0.6 (0.6) Total Liabilities $ 4,006.2 $ 4,044.5 $ 3,905.4 (38.3) 100.8 Equity $ 408.5 $ 404.4 $ 400.9 4.1 7.6 Total Liabilities & Equity $ 4,414.7 $ 4,448.9 $ 4,306.3 (34.2) 108.4

10 Net Interest Margin 1 1Yield includes the impact of deferred fees and amortization of loan origination costs 2FTE NIM has historically been 1-2 bps higher than NIM reported under GAAP 2.98% 2.63% 2.55%2.55% 2.62% 2.69% 2.79% 2.85% 3.08% 3.16% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 All NIM 2024 and beyond presented on a fully taxable equivalent basis (FTE2) 2.67% 2.62% 2.69% 2.79% 2.85% 3.08% 3.16% 4.62% 5.01% 5.17% 5.27% 5.30% 5.30% 5.36% 1.43% 2.06% 2.12% 2.12% 2.15% 1.96% 1.96% 2023 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 NIM Average Loan Yield for the Period Shown Cost of Deposits Strong NIM expansion through 2Q • YTD NIM expansion driven by loan repricing and deposit rate management • Further expansion expected, but moderating absent rate cuts  2H25 NIM expansion expected from loan repricing (e.g., Indirect portfolio)  Additional NIM upside if Fed enacts rate cuts

11 2Q 2025 YTD 2025 EPS $0.65 $1.03 FTE Net Interest Margin 3.16% 3.12% Profitability Net Revenue $40.1 million $79.3 million Return on Average Assets (ROA) 1.00% 0.80% Return on Average Equity (ROE) 10.66% 8.51% $3.4 billion of gross loans 87.2% loan-to-deposit ratio Balance Sheet $3.9 billion of deposits 6.99% wholesale funding ratio 1.00% Allowance for Credit Losses (ACL) 0% digital deposits $23.23 Fully Diluted Tangible Book Value per Share Capital 8.72% Tangible Common Equity (TCE) Ratio 2025 Reported Results & Key Metrics YTD impact of 1Q25 Credit Event, Unification efforts ROA (20) bps ROE (213) bps TCE (10) bps TBV ($0.26)

Non-Interest Income/Expense

13 2Q 2025 Non-Interest Income • Wealth Management assets under management (AUM) increased by ~$36M YTD  Net account activity – new business less closed accounts – increased YTD AUM by ~$22M  Market performance increased YTD AUM by ~$14M • Insurance revenue up YoY due to rising premiums and prior year A&B acquisition  100% retention of acquired A&B book of business through 2Q25 • Interchange fees increased in 2Q25 • Other Income impacted by valuation adjustments to “Other Assets” balance sheet line Dollars in thousands June 30, 2025 March 31, 2025 June 30, 2024 Fees for Other Services to Customers $ 2,787 $ 2,600 $ 2,706 Fiduciary Activities/Wealth Management 2,398 2,535 2,451 Insurance Commissions 1,804 1,826 1,662 Other Operating Income 620 878 1,037 Total Non-Interest Income $ 7,609 $ 7,839 $ 7,856 Three Months Ended

14 2Q 2025 Non-Interest Expense • 2Q25 included Unification expenses of ~$1.1 million • Unification expenses were primarily comprised of project management (legal & professional) and information technology costs related to the July 2025 system conversion and operational merger Dollars in thousands June 30, 2025 March 31, 2025 June 30, 2024 Compensation & Benefits $ 14,086 $ 13,555 $ 13,036 Occupancy & Equipment 1,952 2,022 1,774 Data Processing & Technology 5,589 5,087 4,734 Advertising & Contributions 419 376 278 Legal & Professional 972 2,007 926 FDIC Assessment 649 670 698 Fraud Expenses 38 387 (362) All Other Expenses 1,947 1,941 2,234 Total Non-Interest Expense $ 25,652 $ 26,045 $ 23,318 Three Months Ended

15 Operating Expenses — Efficiency Trends 68.8% 67.7% 66.5% 63.4% 2023 2024 1Q 2025 2Q 2025  Operating efficiency trends on the right track  Ongoing expense reviews  Non-core items in rear-view mirror or winding down (Unification)  Operating expenses to benefit (cost reduction/avoidance) from post-unification cost savings  Excluding non-core items1, 2024 Efficiency Ratio would be ~65.9%  Excluding unification expenses, Efficiency Ratio would be:  1Q25 ~64.9%  2Q25 ~60.6% 12024 included several non-core items - Unification charges, loss on sale of AFS securities repositioning, acquisition-related expenses and carryover expenses related to 2022 Form 10-K filing delays

Loans

17 Loan Portfolio Composition Commercial (C&I)1 10.6% Commercial Real Estate (CRE) 17.8% Consumer 32.4% Residential Real Estate (RRE) 39.2% • No single relationship represents more than ~1.75% of total loans as of June 30, 2025 • CRE concentration ratio of ~135% of risk-based capital • CRE loans not in major metropolitan areas • C&I portfolio can be a source of deposit growth Total Loan Portfolio ~ $3.4 billion 1Commercial (C&I) includes owner-occupied real estate loans. RRE and total loans do not include fair value (“FV”) hedge mark of $3.2M in 2Q25.

18 $2,624 $2,983 $3,207 $3,392 $3,422 Loan Balances $316 $350 $357 $359 $361 $442 $497 $544 $596 $609 $921 $1,065 $1,112 $1,119 $1,109 $946 $1,071 $1,194 $1,318 $1,342 2021 2022 2023 2024 2Q 2025 RRE Consumer CRE C&I Dollars in millions Loan Growth Across All Portfolios 1Refer to 1Q25 Investor Presentation for more information on 1Q Credit Event. Balances exclude all Paycheck Protection Plan loans. CRE excludes owner-occupied real estate loans. Owner-occupied real estate loans shown as part of the C&I portfolio. RRE and total loans do not include FV hedge mark of $5.8M, $2.2M, and $3.2M in 2023, 2024, and 2025, respectively. • YTD loan growth of ~$29M or 1.7% (annualized) • YTD loan growth of ~$44M, or 2.6%, excluding $15M reduction due to 1Q credit event1 ~8.9% CAGR

19 • Loan origination rates exceed portfolio rates • Consumer (Indirect Auto) main driver of future NIM expansion absent rate cuts • C&I and CRE rates are affected by “lumpiness” of origination volume & pay downs • RRE rates trending higher despite increased loan sales from current originations Loan Exit Rate Trends 1Loan exit rate is the point in time rate in effect at the end of the reporting period 1 2Q24 3Q24 4Q24 1Q25 2Q25 Consumer 5.99% 6.19% 6.32% 6.44% 6.55% CRE 5.38% 5.38% 5.31% 5.32% 5.29% C&I 5.27% 5.36% 5.36% 5.37% 5.42% RRE 4.51% 4.61% 4.66% 4.70% 4.77% Total Loans 5.25% 5.35% 5.40% 5.45% 5.51% Consumer CRE C&I RRE June Avg. Origination Rates 6.77% 6.57% 6.57% 6.49%

20 Loan Yields $2.67 $2.74 $2.85 $2.93 $2.98 $3.01 $3.07 $3.14 $3.21 $3.26 $3.32 $3.33 $3.39 $3.41 $3.42 3.82% 3.90% 3.85% 4.09% 4.13% 4.32% 4.57% 4.70% 4.86% 5.02% 5.17% 5.27% 5.30% 5.30% 5.36% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Loan Balance Average Loan Portfolio Yield for the Periods Shown Dollars in billions Pre 2021 4.60% 2021 3.71% 2022 4.55% 2023 6.55% 2024 7.01% 2025 6.83% Rate by Vintage ~46% of balances are 2023-2025 vintages 1Yield includes the impact of deferred fees and loan origination costs amortization Portfolio exit rate was 5.51% as of June 30, 2025 1

21 Consumer Loan Portfolio $921 $977 $1,031 $1,056 $1,065 $1,073 $1,088 $1,108 $1,112 $1,126 $1,139 $1,120 $1,119 $1,119 $1,109 3.87% 3.84% 3.83% 4.10% 4.02% 4.26% 4.61% 4.83% 5.11% 5.36% 5.61% 5.79% 6.08% 6.06% 6.17% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Period-End Loan Balance Average Loan Portfolio Yield for the Period Shown Dollars in millions • ~99.6% of the portfolio are collateralized auto loans; only $4 million in unsecured personal loans • Auto loans sourced through a network of ~500 dealers in New York and Vermont with customers extending beyond those states • ~20% of dealers drive the majority of volume • Loans are underwritten/credit scored by Arrow • Nearly 100% of auto loans are fully amortizing, fixed-rate loans • >74% of auto loan balances have customers with FICO scores >700 • Average portfolio FICO score is 741; Average debt to income ratio ~31%; average LTV is 88% • Less than 5% have FICO scores <620 • Annual losses over last 5 years were 9-20 bps • ~26% new, ~74% used vehicles exposure 2 1Yield includes the impact of deferred fees and loan origination costs amortization 2 Based on MSRP or used National Automobile Dealers Association (NADA) retail value at time of origination 1 Portfolio rates at June 30, 2025 - 6.55% Rate excludes the impact of deferred fees/loan origination costs ~$35M of portfolio turns over each month

22 Commercial Real Estate Portfolio $442 $441 $455 $468 $497 $507 $519 $529 $543 $555 $561 $562 $596 $606 $609 4.90% 5.08% 5.19% 4.88% 5.07% 5.18% 5.25% 5.18% 5.15% 5.26% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Period-End Loan Balance Average Loan Portfolio Yield for the Period Shown Dollars in millions • CRE excludes owner-occupied real estate loans • CRE loans extended to businesses/borrowers primarily located in our regional market area • No CRE exposure to large metropolitan areas – e.g., no NYC exposure • As of June 30, 2025: – ~$190 million, or ~31%, of CRE loans are variable-rate loans or are fixed-rate loans that reprice within 12 months – Non-owner occupied Office exposure accounted for ~7% of CRE and <2% of total loans – Non-owner occupied Retail exposure accounted for ~13% of CRE and ~2% of total loans outstanding – Total Hotels and Motels exposure accounted for ~26% of CRE and <5% of total loans outstanding – The majority of the `and other residential investment properties 1 Yield includes the impact of deferred fees and loan origination costs amortization 1 Portfolio rates at June 30, 2025 - 5.29% Rate excludes the impact of deferred fees/loan origination costs

23 C&I Portfolio $316 $334 $346 $350 $350 $344 $352 $354 $359 $358 $360 $365 $359 $353 $361 4.35% 4.57% 4.89% 5.38% 5.53% 5.66% 5.81% 5.88% 5.71% 5.74% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Period-End Loan Balance Average Loan Portfolio Yield for the Period Shown Dollars in millions • C&I includes owner-occupied real estate loans • C&I loans extended to businesses/ borrowers primarily located in our regional market area • C&I portfolio a potential source for deposit acquisition • As of June 30, 2025: • ~$68 million, or ~19%, of C&I loans are either variable-rate loans or fixed-rate loans that reprice within 12 months 1Yield includes the impact of deferred fees and loan origination costs amortization 1 2Q25 exit rates at 5.42% vs 1Q25 at 5.37% Rate excludes deferred fees/origination costs, which are yield accretive for this portfolio

24 Residential Real Estate Loans $946 $967 $1,012 $1,051 $1,071 $1,081 $1,111 $1,148 $1,194 $1,218 $1,255 $1,287 $1,318 $1,336 $1,342 3.73% 3.71% 3.70% 3.78% 3.80% 4.10% 4.17% 4.25% 4.52% 4.57% 4.67% 4.77% 4.66% 4.71% 4.70% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Period-End Loan Balance Average Loan Portfolio Yield for the Period Shown Dollars in millions • RRE loan balances exclude FV hedge mark • One-to-four family RRE secured by first or second mortgages on residences and home equity lines located in our market area • LTV generally does not exceed 80% at time of origination (lower of purchase price or appraised value) • Loans exceeding 80% LTV at origination require private mortgage insurance or other guarantees • ~ $36M, or <3%, of RRE loan portfolio is for construction purposes • ~9% of the portfolio are home equity lines • As of June 30, 2025: • ~$114 million, or ~8%, of RRE loans are either variable-rate loans or fixed-rate loans that reprice within 12 months 1Yield includes the impact of deferred fees and loan origination costs amortization. 1 As of June 30, 2025, the average rate in the Residential Mortgage portfolio was ~4.53% and the Home Equity Line portfolio rate was ~7.06%, resulting in overall portfolio rate of ~4.77% Rates exclude the impact of deferred fees/ origination costs

Deposits/Funding Sources

26 Deposit Balances – Excl. Brokered CDs 27.0% 27.2% 28.0% 26.4% 27.4% 24.3% 23.3% 22.7% 25.2% 23.6% 48.7% 49.5% 49.3% 48.4% 49.0% 2022 2023 2024 1Q 2025 2Q 2025 Non-Municipal Municipal Business Dollars in billions $3.50 $3.51 $3.56 $3.67 $3.63 1Q25 deposit balances reflect seasonal surge of municipal deposits

27 Deposit Balances – Excl. Brokered CDs 23.9% 21.5% 19.8% 19.0% 20.3% 28.5% 22.8% 22.8% 25.2% 24.4% 41.6% 41.8% 42.7% 41.8% 40.9% 6.0% 13.9% 14.7% 14.0% 14.4% 2022 2023 2024 1Q 2025 2Q 2025 Deposit Balances Time Deposits Savings Deposits Interest-Bearing Checking Noninterest-Bearing Dollars in billions $3.50 $3.51 $3.56 $3.67 $3.63 Interest-bearing checking reflects the impact of seasonal municipal deposits and successful efforts to grow the commercial accounts base

28 Funding Sources and 2Q 2025 Exit Rates • Continue strong pricing discipline • 6-month CD special repriced to 3.85% APR / 3.89% APY in July • ~$365 million of CDs maturing/repricing over next 6 months – but impact is averaging less than 10bps based on current CD special vs. portfolio rates Dollars in millions Balance Rate Balance Rate Balance Rate Balance Rate Demand (Non-Interest Bearing) $ 301 0.00% $ 425 0.00% $ 10 0.00% $ 736 0.00% Interest Bearing Checking 317 0.09% 279 3.00% 289 0.38% 884 1.10% Savings and Money Market 728 1.34% 248 3.01% 509 3.86% 1,485 2.48% Time Deposits 429 3.46% 44 3.28% 50 2.60% 524 3.36% Core Deposits $ 1,775 1.40% $ 996 1.74% $ 858 2.57% $ 3,629 1.77% Brokered CDs - Net of Swap Effect 300 3.95% Total Deposits $ 1,775 1.40% $ 996 1.74% $ 858 2.57% $ 3,929 1.94% Other Borrowings 14 1.38% Junior Subordinated Obligations - TRUPS 20 3.43% Total Deposits and Borrowings $ 1,775 1.40% $ 996 1.74% $ 858 2.57% $ 3,963 1.94% Consumer Business Municipal Total

29 Core Deposit Analysis Balance Exit Rate Balance Exit Rate Balance Exit Rate Demand (Non-Interest Bearing) $736 0.00% $697 0.00% $39 0.00% Interest Bearing Checking $884 1.10% $924 1.02% -$40 0.08% Savings and Money Market $1,485 2.48% $1,532 2.53% -$47 -0.05% Time Deposits $524 3.36% $514 3.44% $10 -0.08% Total $3,629 1.77% $3,668 1.80% -$39 -0.03% 2Q 2025 1Q 2025 Variance • Disciplined pricing continues to favorably impact core deposit (exit) rates • Growth in demand deposit balances

Credit Quality

31 Credit Quality 0.66% 0.64% 0.66% 0.62% 0.56% 0.19% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Non-Performing Loans (NPL) / Gross Loans Dollars in millions  $15M commercial loan participation removed from loan balances as a result of foreclosure and partial charge-off in 2Q25 (reserved in 1Q25)1  YTD annualized charge-offs were 30bps; 7bps excluding credit event described above  2Q25 net charge-offs were 49bps; 4bps excluding the credit event described above  Allowance for credit losses is 1.00%  Allowance to NPL coverage of 533% $21.4 $21.1 $21.9 $21.0 $19.0 $6.4 1The remaining loan balance has been reclassified to Other Assets after the participating banks assumed control of the collateral properties and appointed a property manager to manage the day- to-day activities while exploring further options. The properties itself are being held in an unconsolidated LLC in which Arrow has an ownership interest equivalent to its rights under the former loan participation. As previously disclosed, the properties are generating positive cash flow and a majority is tenant occupied..

32 Delinquent Loan Trends 0.43% 0.45% 0.51% 0.68% 0.57%0.58% 0.62% 0.76% 0.56% 0.61% 0.60% 0.60% 0.53% 0.58% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Delinquent Loans to Total Loans – Excl. 1Q25 Credit Event Delinquency trends remain benign

33 Allowance for Credit Losses $33,598 ($5,020) $5,020 $293 $300 $34,191 4Q 2024 Net Charge-Offs Net Charge-Offs Loan Growth & Model Calculation Specific Reserve 2Q 2025 YTD 2025 Allowance for Credit Loss Walk Provision for Credit Losses $5.6M  In 2Q25, CECL model was updated for latest loss history and related attributes, resulting in > $2 million reallocation of allowance from residential portfolio to the commercial portfolios

Investments

35 • During 2Q25 book yield increased 15bps to 3.11% while duration increased from 3.08 to 3.36 years • AFS additions of ~$39.6M in 2Q25 at average yield of ~5.31% Investment Portfolio – AFS and HTM 1 1 Unrealized Gain/(Loss) on HTM for informational purposes only – not reflected in OCI Dollars in thousands June 30, 2025 1.58 1.23 0.67 1.05 3.36 Duration 3.14 1.65 4.01 3.36 2.39 4.95 3.70 1.21 1,935$ 4.48% 3.51 25,000$ (380) Agency CMO Municipal - Local Other Total AFS US Treasuries 7.02% 7.29% 3.06% 0 17 (23,530)$ Market Value 24,620 41,193 24,408 1,929 1,870 24,407 200 6,017 447,678$ 3,220$ 98,179$ 100,114$ Category 62,781$ 6,470 6,272 (198) 3.51% 335,359 310,455 (24,904) 2.57% Unrealized Gain / (Loss)1 Book Yield 2.92% Current Book Value 25,000 Total Investments US Agencies 200 6,000 471,208$ 3,298$ Agency MBS (24,331)$ 2.38% 2.58% 70,027$ Agency MBS Agency CMO Municipal Municipal - Local Total HTM 40,530 70,828$ (78)$ (59) Expected Run-Off by EOY 0 26,464 295 3.93 Wtd Avg Remaining Life 1.72 4.73 3.77 7,350 2,466 11,022$ 2.39 8.98 4.35 1.28 1.70 1.28 0.67 1.08 0 0 51,759$ 773$ 433 542,036$ 517,705$ 2.69% 4.92% 3.44% 3.11% (663) (1) (801)$

Capital Actions and Strategy

37 Capital & Ownership • Declared 3Q25 Dividend of $0.29 per share; 48th consecutive quarter of dividends • Additional $5.0 million authorized for potential future share repurchases • YTD 2025 Share Repurchase Activity  YTD, ~$8.5M of stock repurchases o ~324.5K shares at an average price of $26.23  2Q25, ~$5.1M of stock repurchases o ~196.5K shares at an average price of $26.06 • Stock Ownership as of June 30, 2025  Approximately 16.5M shares outstanding:  Management – Approximately 0.5%  Directors – Approximately 1%  Employees – Approximately 5% a) Employee Stock Ownership Plan, b) Employee Stock Purchase Plan and c) Equity Incentives  The above percentages do not include approximately 55K in unvested restricted stock awards

38 $22.40 $1.03 ($0.56) ($0.10) $0.46 $23.23 4Q 2024 Net Income Dividends AOCI Stock Repurchases 2Q 2025 2025 TBV/Share Walk Fully Diluted Tangible Book Value (TBV)

39 Capital Position 9.64% 12.73% 13.37% 14.51% 8.72% 9.61% 12.59% 13.23% 14.48% 8.56% 4.00% 4.50% 6.00% 8.00% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% Tier 1 Leverage Ratio Common Equity Tier 1 Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Tangible Common Equity Capital Ratios – Arrow Financial Corporation1 Minimum Regulatory Capital Ratios 1Q 2025 2Q 2025 1 Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report

40 Capital Position 9.26% 12.93% 12.93% 14.07% 9.24% 12.75% 12.75% 14.00% 4.00% 4.50% 6.00% 8.00% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% Tier 1 Leverage Ratio Common Equity Tier 1 Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Capital Ratios – Arrow Bank1 Minimum Regulatory Capital Ratios 1Q 2025 2Q 2025 1 Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report

Overview and History

42 Financial Snapshot 2019 2020 2021 2022 2023 2024 YTD 2025 Total assets $3,184,275 $3,688,636 $4,027,952 $3,969,509 $4,169,868 $4,306,348 $4,414,719 Loans $2,386,120 $2,595,030 $2,667,941 $2,983,207 $3,212,908 $3,394,541 $3,424,754 Loan-to-deposit ratio 91.2% 80.2% 75.1% 85.3% 87.1% 88.7% 87.2% ROA 1.24% 1.17% 1.28% 1.21% 0.74% 0.70% 0.80% Efficiency ratio 57.08% 52.80% 54.16% 54.26% 68.81% 67.68% 64.94% Net non-interest expense/avg. assets 2.22% 2.02% 2.00% 2.01% 2.28% 2.27% 2.39% NIM 3.05% 2.99% 2.97% 3.03% 2.65% 2.72% 3.11% Tier 1 Leverage Ratio 9.98% 9.07% 9.20% 9.80% 9.84% 9.60% 9.64% ROE 13.17% 12.77% 14.09% 13.55% 8.29% 7.72% 8.51% TBV per share $16.48 $18.32 $20.41 $19.37 $21.06 $22.40 $23.23 Net interest income $88,049 $99,202 $110,355 $118,343 $104,832 $111,732 $63,890 Net income $37,475 $40,827 $49,857 $48,799 $30,075 $29,711 $17,115 EPS $2.23 $2.41 $2.92 $2.86 $1.77 $1.77 $1.03 Dollars in thousands, except per share amounts

43 Our Profile • Bank holding company • Arrow Bank National Association • Upstate Agency, LLC • Wealth Management Services • $4.4 billion in assets • 550 plus employees • Primary service area population of more than 1.1 million Insurance Offices Bank Branches 938

44 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

45 Our History 1988 Formed Saratoga National Bank and Trust Company and expanded footprint 1999 Surpassed $1 billion in assets 2004 Bought first insurance agency 2001 Added to the Russell 2000 Index 2021 Topped $4 billion in assets 2018 Consolidated our insurance business into the Upstate Agency brand 2012 Reached $2 billion in assets 2024 Unified banking subsidiaries to form Arrow Bank National Association

46 President and Chief Executive Officer Mr. DeMarco joined the Company in 1987 as a commercial lender and since that time has served in positions of increasing responsibility within the organization. In 2012, he was named President and CEO of Saratoga National Bank, now named Arrow Bank. In May 2023, he was named President and CEO of Arrow Financial Corporation and Glens Falls National Bank, now named Arrow Bank. He holds a bachelor’s degree in finance from the University of Texas at Austin. Mr. DeMarco is a graduate of the Adirondack Regional Chamber of Commerce’s Leadership Program and the Stonier Graduate School of Banking. He serves as a Director of the Company and Arrow Bank and sits on the boards of various non-profits dedicated to healthcare and economic development. David S. DeMarco, President and CEO

47 Experienced Leadership Team Mr. Ivanov joined the Company in 2023 with more than 30 years of experience in Financial Planning & Analysis, Controllership, SOX, Financial Reporting and Treasury. Mr. Ivanov previously served as CFO for Bankwell Financial Group, helping it almost double in size over six-plus years to $3.3 billion. He has held CFO positions at Darien Rowayton Bank and for Doral Bank’s U.S. Operations. He began his career with Ernst & Young and held accounting/ finance positions at PepsiCo, GE Capital and Bridgewater Associates. Mr. Ivanov holds an MBA and bachelor’s degree in accounting and finance from the University of South Florida. He is also Six Sigma Black Belt certified. Penko Ivanov, Senior Executive Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer Mr. Wise joined the Company in 2016 as Senior Vice President of Administration for Glens Falls National Bank, now named Arrow Bank. He has since been promoted to Senior Executive Vice President and Chief Risk Officer of the Company. He has more than 30 years of experience building and leading both community banks and bank-owned insurance agencies. Mr. Wise previously served as Vice President and CISO for The Adirondack Trust Company and acted as Executive Vice President, COO for Wise Insurance Brokers, Inc. He has extensive experience in designing, implementing and managing workflows and delivering operational efficiency. He holds a bachelor’s degree from Boston University’s School of Management. Andrew J. Wise, Senior Executive Vice President, Chief Risk Officer Mr. Yrsha joined the Company in 2015. He currently is the Chief Banking Officer and oversees the strategic direction of the Retail Banking unit, which includes retail deposits and lending, business development, consumer payments, business services, municipal banking, as well as small business and retail lending. In addition, Marc oversees the Wealth Management division and Marketing. Prior to joining our Company, Mr. Yrsha spent time in retail leadership, retail and commercial lending at large regional and community banks within the Arrow footprint. Mr. Yrsha is active in the community serving in leadership roles on a variety of boards. He is a graduate of Castleton University in Vermont and the Adirondack Regional Chamber of Commerce’s Leadership Adirondack Program. Marc Yrsha, Senior Executive Vice President, Chief Banking Officer

48 Experienced Leadership Team Ms. Pancoe joined the Company in 2018 as Director of Human Resources. In her current role as Chief Human Resources Officer, she has executive oversight of the Company’s human resource strategies, which includes organizational design and succession planning, talent acquisition and retention, performance management, professional development and compensation and benefits. Prior to joining the Company, Ms. Pancoe held various human resource management roles within the power generation and engineering services industry. Ms. Pancoe holds a bachelor’s degree in psychology from Clark University in Worcester, MA, and an MBA from the University at Albany. In addition, she maintains a certified professional human resources designation. Brooke Pancoe, Executive Vice President, Chief Human Resources Officer Mr. Jacobs joined the Company in 2003 as Information Systems Manager. He was later promoted to Senior Vice President and then Executive Vice President. As Chief Information Officer, Mr. Jacobs guides the Company’s strategic technology plans. He has more than 30 years of experience in the community banking industry, having previously served as Operations Manager at Cohoes Savings Bank and Item Processing Manager at Hudson River Bank and Trust. Mr. Jacobs earned a bachelor’s degree in finance from Siena College and an associate degree in business administration from Hudson Valley Community College. Michael Jacobs, Executive Vice President, Chief Information Officer

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