ARROW FINANCIAL Business Summary

Arrow Financial Corporation (AROW) is a multi-bank holding company that generates revenue primarily through net interest income from its diverse loan and investment portfolios, supplemented by non-interest income from fiduciary fees, insurance commissions, and service charges. The company operates through two principal segments: Community Banking and Wealth Management/Insurance. Its banking operations are conducted via its lead subsidiaries, Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company, while its insurance services are managed through Upstate Agency, LLC. Arrow Financial focuses on a conservative regional model, emphasizing commercial and consumer lending, residential mortgages, and deposit-gathering in Northeastern New York. Direct competitors include NBT Bancorp Inc. (NBTB), S&T Bancorp Inc. (STBA), and CVB Financial Corp. (CVBF). Relative to these peers, Arrow positions itself as a high-performing community-centric institution, distinguished by a 32-year streak of consecutive dividend increases and a robust net interest margin that reached 3.19% in early 2026. Leadership is spearheaded by President and CEO David S. DeMarco, a 35-year company veteran who rose through the ranks from a commercial lender to executive leadership in 2023. The executive team includes Senior EVP and CFO Penko K. Ivanov, who brings extensive experience in financial reporting and treasury management, and Senior EVP Marc J. Yrsha, who serves as Chief Banking Officer. Other key officers include Chief Risk Officer Andrew J. Wise and Chief Information Officer Michael Jacobs. The Board of Directors is chaired by Tenée R. Casaccio, President of JMZ Architects and Planners, and recently expanded to include Darrin Jahnel, founder of Jahnel Group, to bolster its technology and strategic planning expertise. While the holding company was established in 1983, the organization maintains a deep historical pedigree through Glens Falls National Bank, which celebrates its 175th anniversary in 2026, reflecting a legacy of institutional stability and long-term shareholder value.