Arrow Financial (NASDAQ:AROW) used its virtual annual meeting to highlight what executives described as a transformational 2025, including the first full year operating under the unified Arrow Bank brand, stronger profitability metrics and progress toward its planned acquisition of Adirondack Bank.
Tenée Casaccio, chair of the Arrow Financial Corporation Board of Directors, opened the meeting from the company’s Glens Falls, New York, headquarters. She said 2025 was “a pivotal year” for the company, marked by “meaningful transformations, exceptional performance, and a renewed sense of shared purpose.”
Shareholders Approve Director Slate, Auditor and Say-on-Pay Vote
During the business portion of the meeting, shareholders approved all three proposals presented by the board. The company said a quorum was present by proxy, and the polls were closed before results were announced.
Shareholders elected four Class A directors to three-year terms: Mark L. Behan, Gregory J. Champion, Darrin M. Jahnel and Daniel J. White. They also approved, on an advisory basis, the company’s 2025 executive compensation and ratified Crowe LLP as Arrow’s independent auditor for the fiscal year ending Dec. 31, 2026.
DiMarco noted that Darrin Jahnel had joined the board effective Nov. 25, 2025, and was standing for election at the meeting. He described Jahnel as a CEO, entrepreneur and artificial intelligence expert with more than 25 years of experience building and scaling companies. DiMarco also thanked Elizabeth Miller for more than a decade of service as a director of Arrow and its former subsidiary banks.
Financial Results Show Profitability Gains
Chief Financial Officer Penko Ivanov said 2025 built on the company’s prior-year foundation and was “truly a transformative year.” He said Arrow delivered substantial earnings-per-share growth, a return on assets of 1% and a net interest margin of just under 3.2%. The year also marked a return to double-digit return on equity, while net charge-offs were below 20 basis points.
Ivanov said Arrow continued to grow its loan portfolio while maintaining a steady deposit base. He added that the company increased its cash dividend and ended 2025 with approximately $432 million in shareholder equity, up about $31 million from the prior year.
For the first quarter of 2026, Ivanov said Arrow reported net income of $13.5 million, or $0.82 per share, which he described as one of the company’s strongest quarterly reported results. He said results were stronger on an operating basis because the company began recognizing one-time expenses tied to the pending Adirondack Bank merger.
Arrow’s first-quarter 2026 net interest margin rose to 3.48%, while return on assets reached 1.23%, or 1.29% on an operating basis when adjusted for merger-related expenses, Ivanov said. He also cited charge-offs falling to 10 basis points and non-performing loans declining to $4.4 million, or 13 basis points of the total loan portfolio. The cost of retail deposits dropped 11 basis points from the fourth quarter of 2025 to 1.62%.
Arrow Bank Unification and Digital Investments
DiMarco said 2025 was the company’s first full year operating as Arrow Bank after unifying Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. He said the company completed “One Bank Weekend” in July, unifying systems, teams and operations.
The company also launched a brand education campaign tied to its new identity and completed a renovation of its Queensbury branch. DiMarco said Arrow plans to continue making “thoughtful” investments in its locations.
On the technology front, DiMarco said Arrow launched Digital Wallet support through Apple Pay, Google Pay and Samsung Wallet. He said website sessions reached 2.25 million in 2025, up 23% year over year. The company also consolidated social media channels for Arrow Bank and expanded fraud education resources on arrowbank.com.
Adirondack Bank Acquisition Remains Pending
DiMarco said Arrow has entered into a definitive agreement with Adirondack Bancorp, Inc. to acquire Adirondack Bank and merge it into Arrow Bank. He said Arrow has received approval from its primary regulator, the Office of the Comptroller of the Currency, and is awaiting additional regulatory approvals and Adirondack shareholder approval.
As of Dec. 31, 2025, Adirondack Bank had total assets of $942 million, deposits of $848 million and loans of $624 million, DiMarco said. On a pro forma basis, the combined company would have total assets of $5.4 billion, deposits of $4.8 billion and loans of $4.1 billion.
DiMarco said the transaction would expand Arrow’s reach further into the Adirondack region and into markets including the Mohawk Valley, Rome, Utica and Sylvan Beach. He said Rocco Arcuri, Adirondack Bank’s current president and CEO, is expected to join Arrow as regional president to support the transition.
Community Giving and Recognition
Executives also emphasized Arrow’s community involvement. DiMarco said the company surpassed $1 million in total giving for the first time in 2025, contributing $1.05 million to 424 organizations. Employees donated $122,668, a 13% year-over-year increase, and volunteered 13,705 hours with 706 organizations.
Arrow also mobilized $38,000 in emergency SNAP-related food relief donations through branches in the fourth quarter of 2025, DiMarco said. Over the last seven years, the company has donated more than $4.3 million.
DiMarco said Arrow has earned a five-star exceptional performance rating from BauerFinancial for 76 consecutive quarters. He also cited an Albany Business Review report ranking Arrow Bank third in Capital Region deposit share, behind KeyBank and TrustCo Bank, and said Arrow Bank was named a finalist in PR Daily’s 2025 Marketing Awards for Best Rebrand or Refresh.
About Arrow Financial (NASDAQ:AROW)
Arrow Financial Corporation is a bank holding company headquartered in Glens Falls, New York, that conducts its primary operations through its subsidiary, Glens Falls National Bank & Trust Company. The company provides a comprehensive suite of retail and commercial banking services, including checking and savings accounts, consumer and commercial lending, mortgage financing, and cash management solutions. Through its branch network, Arrow Financial serves individuals, small- and medium-sized businesses, and nonprofit organizations across the Adirondack region, Upper Hudson Valley, Mohawk Valley and parts of Central New York.
In addition to traditional banking, Arrow Financial has developed a robust wealth management and trust services division.
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