Arrow Inc. is a bank holding company that owns Arrow Bank N.A. and several non-bank subsidiaries (including an insurance agency, a registered investment adviser, and a REIT) providing commercial and consumer banking, insurance, and financial services primarily in upstate New York.

# Arrow Inc.

## Corporate structure and business scope
- Incorporated March 21, 1983; registered as a bank holding company under the Bank Holding Company Act of 1956.
- One wholly owned banking subsidiary: Arrow Bank National Association.
- Through Arrow Bank, Arrow indirectly owns non-bank subsidiaries, including an insurance agency, a registered investment adviser, and a real estate investment trust (REIT).

## Financial snapshot (as of 12/31/2025)
- Total assets: $4,421,212 thousand (about $4.421 billion)
- Full-time equivalent employees: 578 (includes 40 employees in the insurance agency subsidiary)
- Bank branches: 38
- Insurance offices: 9
- Main office: 250 Glen Street, Glens Falls, NY

## Operations and product offerings
- Primary business is ownership, supervision, and control of Arrow Bank and its subsidiaries.
- Provides advisory and administrative services and coordinates policy and operations for Arrow Bank.
- Deposits are derived principally from the communities Arrow serves.
- Offers a broad range of commercial and consumer banking and financial products.

## Lending activities
- Lending products include commercial and industrial loans to small- and mid-sized companies; residential and commercial mortgage lending; consumer installment and home equity financing.
- Indirect lending program: an extensive network of automobile dealers in New York and Vermont that originate consumer auto loans meeting specified criteria.
- Some residential real estate loan originations are sold into the secondary market (primarily Freddie Mac and other government agencies); servicing rights are generally retained.
- Subprime, Alt A, negative amortization, option ARMs, and negative equity mortgage lending are not part of Arrow Bank’s business.
- Geographic focus for core lending is primarily upstate New York; indirect consumer lending covers a larger area of New York and Vermont.
- Foreign loans and significant risk concentrations: none reported.
- Participations: Arrow Bank buys/offers participations in some commercial loans, typically less than 20% of commercial loans outstanding.
- Collateral and guarantees: the majority of the portfolio is collateralized and often supported by personal guarantees.
- Nonaccrual policy:
  - Home equity lines of credit (secured by real property): nonaccrual at 120 days past due.
  - Residential real estate loans: nonaccrual at 150 days past due.
  - Commercial/commercial real estate loans: nonaccrual at 90 days past due if full collection is uncertain.
- Servicing: loans originated and sold into secondary markets may retain servicing rights, subject to profitability determinations.

## Customer base and deposits
- Deposit base consists of deposits from the communities Arrow serves.

## Geographic footprint
- Primary operating region: upstate New York.
- Indirect lending network extends into New York and Vermont.

## Human capital
- Arrow references human capital resources in Section G of the filing, with 578 total FTE as of 12/31/2025, including 40 employees in the insurance agency subsidiary.

Arrow Financial Corporation is a bank holding company that provides a wide range of financial services including commercial and consumer banking, wealth management, and insurance.

# Arrow Financial Corporation Overview

**Incorporation and Structure:**

- **Incorporated:** March 21, 1983
- **Type:** Bank holding company under the Bank Holding Company Act of 1956.
- **Headquarters:** Glens Falls, New York.
- **Main Subsidiary:** Arrow Bank National Association (formerly Glens Falls National Bank, GFNB).
- **Other Subsidiaries:** Include Upstate Agency, LLC (insurance agency), North Country Investment Advisers, Inc. (registered investment adviser), and Arrow Properties, Inc. (real estate investment trust).

**Business Operations:**

- Arrow Financial Corporation primarily provides a range of **commercial and consumer banking services**. This includes:
  - **Lending Activities:** Offering commercial, industrial, mortgage lending, consumer installment loans, and home equity financing.
  - **Trust and Wealth Management Services:** Provides retirement planning, trust, estate administration services, as well as pension and benefit plan administration for corporations.
  - **Insurance Services:** Through its subsidiary, Upstate Agency, LLC, Arrow provides property and casualty insurance and group health care policies.

**Scale of Operations:**

- **Employees:** 554 full-time equivalent employees.
- **Branches:** 38 banking branches and 9 insurance offices.
- **Total Assets:** Approximately **$4.3 billion** as of December 31, 2024.
- **Customers:** Approximately **10,000 beneficial owners of Arrow’s common stock** as of December 31, 2024.

**Financial Performance:**

- **Revenue:** 
  - For the year ended December 31, 2024, Arrow Financial Corporation had a **net income of $29.7 million**.
  - The revenue from interest and fees on loans amounted to **$171.3 million**.
- **Earnings:**
  - **Diluted Earnings per Share (EPS):** $1.77 for the year 2024, unchanged from 2023.
  - **Return on Average Assets (ROA):** 0.70% for 2024.
  - **Return on Average Equity (ROE):** 7.72% for 2024.
- **Dividends:** Cash dividends paid per share were **$1.09** for 2024.

**Loan Portfolio:**

- Total loan balances reached **$3.4 billion** at the end of 2024, with categories including commercial, consumer, and residential loans.
  - **Commercial Loans:** $159 million (5% of total loans).
  - **Commercial Real Estate Loans:** $796 million (23% of total loans).
  - **Consumer Loans:** $1.12 billion (33% of total loans).
  - **Residential Real Estate Loans:** $1.32 billion (39% of total loans).

**Regulatory Compliance and Capital Position:**

- Arrow Bank is subject to extensive federal and state banking regulations.
- **Capital Ratios (as of December 31, 2024):**
  - Common Equity Tier 1 Capital Ratio: **12.71%**
  - Total Risk-Based Capital Ratio: **14.45%**
  - Arrow Bank qualifies as "well-capitalized" under regulatory standards.

**Community Engagement:**

- Arrow is committed to enhancing the financial well-being of its community, having contributed over **$3 million** to non-profit organizations since 2019, along with employee volunteer initiatives.

**Conclusion:**

Arrow Financial Corporation is a well-established bank holding company focusing on community banking, providing a diverse range of financial services to individuals and small to mid-sized businesses. With a solid capital position, a commitment to regulatory compliance, and strong community engagement, Arrow Financial continues to thrive in the financial services industry.

ARROW FINANCIAL CORP

10-K / March 6, 2026

10-K / March 14, 2025

10-K / March 6, 2026

Arrow Inc.

Corporate structure and business scope

Financial snapshot (as of 12/31/2025)

Operations and product offerings

Lending activities

Customer base and deposits

Geographic footprint

Human capital