Arrow Financial Corp 10-Q for FY2026 Q1

Arrow Financial Corp (AROW)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Arrow Financial Corp filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $13.49M; up 113.7% from net income of $6.31M a year earlier
Diluted EPS: $0.82; up 115.8% from $0.38 a year earlier

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New York						22-2448962
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


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


Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer	☐	Smaller reporting company	☐
		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 standard provided pursuant to Section 13(a) of the Exchange Act.			☐


Class						Outstanding as of April 30, 2026
Common Stock, par value $1.00 per share						16,529,019


			Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements			3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			37
Item 3. Quantitative and Qualitative Disclosures About Market Risk			57
Item 4. Controls and Procedures			59


PART II - OTHER INFORMATION
Item 1. Legal Proceedings			60
Item 1.A. Risk Factors			60
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			60
Item 3. Defaults Upon Senior Securities			60
Item 4. Mine Safety Disclosures			60
Item 5. Other Information			60
Item 6. Exhibits			62

SIGNATURES			63


	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, 2026 and $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		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	140,899		155,802
Other Time Deposits	634,829		641,463
Total Deposits	4,013,939		3,939,469
Borrowings	4,265		4,265


Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		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 Authorized at March 31, 2026 and December 31, 2025 (none issued)	—		—
Common Stock, $1 Par Value: 30,000,000 Shares Authorized; 22,066,559 Shares Issued and 16,526,929 and 16,445,342 outstanding at March 31, 2026 and December 31, 2025	22,067		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, 2026 and 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


	Three Months Ended March 31,
	2026		2025
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans	$	47,126	$	44,550
Interest on Deposits at Banks	1,675		1,621
Interest and Dividends on Investment Securities:
Fully Taxable	4,529		3,608
Exempt from Federal Taxes	464		587
Total Interest and Dividend Income	53,794		50,366
INTEREST EXPENSE
Interest-Bearing Checking Accounts	2,100		1,803
Savings Deposits	8,716		9,483
Time Deposits over $250	1,196		1,811
Other Time Deposits	5,436		5,529

Borrowings	—		167
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	169		169
Interest on Financing Leases	47		47
Total Interest Expense	17,664		19,009
NET INTEREST INCOME	36,130		31,357
Provision for Credit Losses on Loans	548		5,019
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	35,582		26,338
NON-INTEREST INCOME
Income From Fiduciary Activities	2,713		2,535
Fees for Other Services to Customers	2,727		2,600
Insurance Commissions	2,113		1,826
Net Gain on Securities	145		317
Net Gain on Sales of Loans	290		101
Other Operating Income	640		460
Total Non-Interest Income	8,628		7,839
NON-INTEREST EXPENSE
Salaries and Employee Benefits	14,922		13,555
Occupancy Expenses, Net	2,459		2,022
Technology and Equipment Expense	5,052		5,087
FDIC Assessments	585		670
Other Operating Expense	3,847		4,711
Total Non-Interest Expense	26,865		26,045
INCOME BEFORE PROVISION FOR INCOME TAXES	17,345		8,132
Provision for Income Taxes	3,860		1,822
NET INCOME	$	13,485	$	6,310
Average Shares Outstanding:
Basic	16,382		16,665
Diluted	16,403		16,673
Per Common Share:
Basic Earnings	$	0.82	$	0.38
Diluted Earnings	0.82		0.38


	Three Months Ended March 31, 2026
	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumu-lated Other Com- prehensive Loss		Treasury Stock		Total
Balance at December 31, 2025	$	22,067	$	414,506	$	102,271	$	(4,037)	$	(102,955)	$	431,852


Net Income	—		—		13,485		—		—		13,485
Other Comprehensive Loss	—		—		—		(727)		—		(727)



Cash Dividends Paid, $.30 per Share	—		—		(4,952)		—		—		(4,952)
Stock Options Exercised, Net (7,325 Shares)	—		107		—		—		58		165
Shares Issued Under the Directors’ Stock Plan (3,925 Shares)	—		94		—		—		31		125
Shares Issued Under the Employee Stock Purchase Plan (2,684 Shares)	—		58		—		—		22		80

Shares Issued Related to Restricted Share Awards (71,111 Shares)	—		(562)		—		—		562		—
Compensation expense related to Employee Stock Purchase Plan	—		8		—		—		—		8
Stock-Based Compensation Expense	—		220		—		—		—		220
Purchase of Treasury Stock (3,458 Shares) related to vesting or exercise of stock based compensation awards	—		—		—		—		(113)		(113)




Balance at March 31, 2026	$	22,067	$	414,431	$	110,804	$	(4,764)	$	(102,395)	$	440,143





























	Three Months Ended March 31, 2025
	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumu-lated Other Com- prehensive Loss		Treasury Stock		Total
Balance at December 31, 2024	$	22,067	$	413,476	$	77,215	$	(18,453)	$	(93,404)	$	400,901


Net Income	—		—		6,310		—		—		6,310
Other Comprehensive Income	—		—		—		4,933		—		4,933



Cash Dividends Paid, $.28 per Share	—		—		(4,698)		—		—		(4,698)
Stock Options Exercised, Net (5,144 Shares)	—		62		—		—		40		102
Shares Issued Under the Directors’ Stock Plan (4,989 Shares)	—		92		—		—		40		132
Shares Issued Under the Employee Stock Purchase Plan (3,327 Shares)	—		56		—		—		27		83

Shares Issued Related to Restricted Share Awards (43,250 Shares)	—		(342)		—		—		342		—
Compensation expense related to Employee Stock Purchase Plan	—		9		—		—		—		9
Stock-Based Compensation Expense	—		116		—		—		—		116

Purchase of Treasury Stock (130,101 Shares) 1	—		—		—		—		(3,479)		(3,479)


Balance at March 31, 2025	$	22,067	$	413,469	$	78,827	$	(13,520)	$	(96,434)	$	404,409


	Three Months Ended March 31,
Cash Flows from Operating Activities:	2026		2025
Net Income	$	13,485	$	6,310
Provision for Credit Losses	548		5,019
Depreciation and Amortization	1,246		1,206
Net gain on equity securities	(145)		(317)
Loans originated and held-for-sale	(7,420)		(5,591)
Proceeds from the sale of loans held-for-sale	10,605		4,135
Net gain on the sale of loans	(290)		(101)
Net loss on the sale of premises and equipment, other real estate owned and repossessed assets	39		37
Contributions to retirement benefit plans	(157)		(177)
Deferred income tax benefit	(1,530)		(854)
Settlement of Energy Production Tax Credits	(4,070)		—
Shares issued under the Directors’ Stock Plan	125		132
Stock-based compensation expense	228		125
Tax benefit from exercise of stock options	109		8

Net increase in Other Assets	4,482		3,089
Net decrease in Other Liabilities	(2,012)		(2,951)
Net Cash Provided By Operating Activities	15,243		10,070
Cash Flows from Investing Activities:
Proceeds from maturities, calls, and principal repayments of securities AFS	17,945		26,172
Purchases of securities AFS	(43,152)		—
Proceeds from maturities, calls, and principal repayments of securities HTM	2,070		3,629
Purchases of securities HTM	(752)		(2,899)

Net decrease (increase) in loans	9,617		(21,168)

Proceeds from sales of premises and equipment, OREO and repos	468		623
Purchases of premises and equipment	(1,302)		(1,274)
Purchase of FHLB stock	(3)		—

Net Cash (Used) Provided By Investing Activities	(15,109)		5,083
Cash Flows from Financing Activities:
Net increase in deposits	74,470		140,235

Finance lease payments	(21)		(26)


Net cash collateral received from (paid to) derivative counterparties	1,660		(470)

Purchase of treasury stock	(113)		(3,479)
Stock options exercised, net	165		102
Shares issued under ESPP	80		83
Cash dividends paid	(4,952)		(4,698)
Net Cash Provided By Financing Activities	71,289		131,747
Net Increase in Cash and Cash Equivalents	71,423		146,900
Cash and Cash Equivalents at Beginning of Period	214,183		154,546
Cash and Cash Equivalents at End of Period	$	285,606	$	301,446

Supplemental Disclosures to Statements of Cash Flow Information:
Interest on deposits and borrowings	$	18,101	$	18,718
Income taxes	603		507

Transfer of loans to other real estate owned and repossessed assets	749		624


Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
March 31, 2026
Available-For-Sale Securities, at Amortized Cost	$	78,523	$	25,000	$	200	$	408,303	$	26,250	$	538,276
Gross Unrealized Gains	1,352		—		—		1,203		331		2,886
Gross Unrealized Losses	(73)		(198)		—		(22,031)		(57)		(22,359)
Available-For-Sale Securities, at Fair Value	79,802		24,802		200		387,475		26,524		518,803
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											264,016

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	—	$	15,000	$	—	$	111	$	—	$	15,111
From 1 - 5 Years	73,465		10,000		200		39,288		1,000		123,953
From 5 - 10 Years	5,058		—		—		64,801		25,250		95,109
Over 10 Years	—		—		—		304,103		—		304,103

Maturities of Debt Securities, at Fair Value:
Within One Year	$	—	$	14,856	$	—	$	111	$	—	$	14,967
From 1 - 5 Years	74,817		9,946		200		38,856		980		124,799
From 5 - 10 Years	4,985		—		—		60,630		25,544		91,159
Over 10 Years	—		—		—		287,878		—		287,878

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	4,985	$	—	$	—	$	75,348	$	9,213	$	89,546
12 Months or Longer	—		24,802		—		184,721		980		210,503
Total	$	4,985	$	24,802	$	—	$	260,069	$	10,193	$	300,049
Number of Securities in a Continuous Loss Position	1		3		—		90		8		102

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	73	$	—	$	—	$	896	$	37	$	1,006
12 Months or Longer	—		198		—		21,135		20		21,353
Total	$	73	$	198	$	—	$	22,031	$	57	$	22,359















December 31, 2025
Available-For-Sale Securities, at Amortized Cost	$	78,436	$	25,000	$	200	$	385,766	$	23,500	$	512,902
Gross Unrealized Gains	2,139		—		—		2,153		194		4,486
Gross Unrealized Losses	(12)		(184)		—		(21,238)		(86)		(21,520)
Available-For-Sale Securities, at Fair Value	80,563		24,816		200		366,681		23,608		495,868
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											234,933

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	5,047	$	—	$	—	$	13,154	$	4,436	$	22,637


Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
March 31, 2026
Held-To-Maturity Securities, at Amortized Cost	$	62,081	$	3,565	$	65,646

Gross Unrealized Losses	(246)		(79)		(325)
Held-To-Maturity Securities, at Fair Value	61,835		3,486		65,321
Held-To-Maturity Securities, Pledged as Collateral, at Carrying Value					33,703
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					33,378

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	46,161	$	—	$	46,161
From 1 - 5 Years	14,560		2,261		16,821
From 5 - 10 Years	1,360		—		1,360
Over 10 Years	—		1,304		1,304

Maturities of Debt Securities, at Fair Value:
Within One Year	$	46,095	$	—	$	46,095
From 1 - 5 Years	14,385		2,222		16,607
From 5 - 10 Years	1,355		—		1,355
Over 10 Years	—		1,264		1,264

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	792	$	—	$	792
12 Months or Longer	31,058		3,485		34,543
Total	$	31,850	$	3,485	$	35,335


Schedule of Past Due Loans by Loan Category
			Commercial
	Commercial		Real Estate		Consumer		Residential		Total
March 31, 2026
Loans past due 30-59 days	$	514	$	—	$	13,620	$	5,233	$	19,367
Loans past due 60-89 days	175		—		4,606		1,059		5,840
Loans past due 90 or more days	304		—		1,290		1,960		3,554
Total loans past due	993		—		19,516		8,252		28,761
Current loans	168,606		811,770		1,052,027		1,377,802		3,410,205
Total Loans	$	169,599	$	811,770	$	1,071,543	$	1,386,054	$	3,438,966

December 31, 2025
Loans past due 30-59 days	$	584	$	—	$	13,476	$	808	$	14,868
Loans past due 60-89 days	255		2,888		7,495		3,503		14,141
Loans past due 90 or more days	195		—		1,886		3,517		5,598
Total loans past due	1,034		2,888		22,857		7,828		34,607
Current loans	164,695		815,371		1,053,150		1,385,270		3,418,486
Total loans	$	165,729	$	818,259	$	1,076,007	$	1,393,098	$	3,453,093


Schedule of Nonaccrual Loans by Category
			Commercial
March 31, 2026	Commercial		Real Estate		Consumer		Residential		Total
Loans 90 or more days past due and Still Accruing Interest	$	—	$	—	$	—	$	621	$	621
Nonaccrual loans	304		—		1,355		2,143		3,802
Nonaccrual with no allowance for credit loss	—		—		—		1,027		1,027


December 31, 2025
Loans 90 or more days past due and Still Accruing Interest	$	27	$	—	$	31	$	1,983	$	2,040
Nonaccrual loans	168		—		1,879		4,368		6,415
Nonaccrual with no allowance for credit loss	168		—		1,879		4,368		6,415


Allowance for Credit Losses
	Commercial		Commercial Real Estate		Consumer		Residential		Total
December 31, 2025	$	2,954	$	15,260	$	4,090	$	12,018	$	34,322
Charge-offs	$	—	$	—	$	(1,560)	$	(14)	$	(1,574)
Recoveries	$	—	$	—	$	759	$	—	$	759
Provision	$	(499)	$	(703)	$	1,221	$	529	$	548
March 31, 2026	$	2,455	$	14,557	$	4,510	$	12,533	$	34,055








December 31, 2024	$	1,925	$	14,507	$	3,882	$	13,284	$	33,598
Charge-offs	$	—	$	—	$	(1,519)	$	(31)	$	(1,550)
Recoveries	$	—	$	—	$	704	$	—	$	704
Provision	$	(124)	$	3,729	$	1,080	$	334	$	5,019
March 31, 2025	$	1,801	$	18,236	$	4,147	$	13,587	$	37,771


March 31, 2026	Collateral Type -Residential Real Estate		Collateral Type - Commercial Real Estate		Total Loans
Commercial	$	—	$	—	$	—
Commercial Real Estate	—		—		—
Consumer	—		—		—
Residential	1,027		—		1,027
Total	$	1,027	$	—	$	1,027


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
March 31, 2026	2026		2025		2024		2023		2022		Prior
Commercial:
Risk rating
Satisfactory	$	12,197	$	39,452	$	39,302	$	18,748	$	15,402	$	28,085	$	11,114	$	—	$	164,300
Special mention	—		132		—		25		—		—		—		—		157
Substandard	—		—		88		293		745		2,861		1,155		—		5,142
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Loans	$	12,197	$	39,584	$	39,390	$	19,066	$	16,147	$	30,946	$	12,269	$	—	$	169,599

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate:
Risk rating
Satisfactory	$	8,157	$	93,054	$	113,161	$	77,881	$	133,042	$	345,620	$	3,286	$	—	$	774,201
Special mention	—		301		6,317		778		7,449		7,653		—		—		22,498
Substandard	—		2,527		—		141		2,960		9,179		264		—		15,071
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	8,157	$	95,882	$	119,478	$	78,800	$	143,451	$	362,452	$	3,550	$	—	$	811,770

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Risk rating
Performing	$	114,168	$	349,748	$	250,442	$	169,275	$	122,322	$	63,771	$	462	$	—	$	1,070,188
Nonperforming	—		264		342		214		331		204		—		—		1,355
Total Consumer Loans	$	114,168	$	350,012	$	250,784	$	169,489	$	122,653	$	63,975	$	462	$	—	$	1,071,543

Current-period gross charge-offs	$	—	$	135	$	469	$	341	$	293	$	322	$	—	$	—	$	1,560

Residential:
Risk rating
Performing	$	17,463	$	151,890	$	166,240	$	156,001	$	201,232	$	554,780	$	135,684	$	—	$	1,383,290
Nonperforming	—		204		475		285		—		1,548		252		—		2,764
Total Residential Loans	$	17,463	$	152,094	$	166,715	$	156,286	$	201,232	$	556,328	$	135,936	$	—	$	1,386,054

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	—	$	14

Total Loans	$	151,985	$	637,572	$	576,367	$	423,641	$	483,483	$	1,013,701	$	152,217	$	—	$	3,438,966


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
December 31, 2025	2025		2024		2023		2022		2021		Prior
Commercial:
Risk rating
Satisfactory	$	40,855	$	41,908	$	20,671	$	15,915	$	12,070	$	19,917	$	9,765	$	—	$	161,101
Special mention	196		—		25		—		—		—		—		—		221
Substandard	—		—		410		92		—		2,896		1,009		—		4,407
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Loans	$	41,051	$	41,908	$	21,106	$	16,007	$	12,070	$	22,813	$	10,774	$	—	$	165,729

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate:
Risk rating
Satisfactory	$	90,358	$	113,616	$	78,723	$	128,103	$	96,305	$	264,374	$	2,112	$	—	$	773,591
Special mention	302		6,348		275		7,504		4,749		3,808		473		—		23,459
Substandard	2,127		—		341		4,104		304		14,069		264		—		21,209
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate Loans	$	92,787	$	119,964	$	79,339	$	139,711	$	101,358	$	282,251	$	2,849	$	—	$	818,259

Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	1,656	$	2,162	$	—	$	—	$	3,818

Consumer:
Risk rating
Performing	$	370,436	$	281,349	$	194,467	$	144,210	$	62,395	$	20,796	$	444	$	—	$	1,074,097
Nonperforming	121		502		363		421		375		128		—		—		1,910
Total Consumer Loans	$	370,557	$	281,851	$	194,830	$	144,631	$	62,770	$	20,924	$	444	$	—	$	1,076,007

Current-period gross charge-offs	$	291	$	1,472	$	1,380	$	1,367	$	904	$	271	$	—	$	—	$	5,685

Residential:
Risk rating
Performing	$	144,618	$	172,965	$	160,802	$	206,858	$	170,889	$	395,132	$	135,483	$	—	$	1,386,747
Nonperforming	204		1,041		337		1,966		342		2,291		170		—		6,351
Total Residential Loans	$	144,822	$	174,006	$	161,139	$	208,824	$	171,231	$	397,423	$	135,653	$	—	$	1,393,098

Current-period gross charge-offs	$	—	$	—	$	—	$	20	$	—	$	31	$	—	$	—	$	51

Total Loans	$	649,217	$	617,729	$	456,414	$	509,173	$	347,429	$	723,411	$	149,720	$	—	$	3,453,093


	March 31, 2026		December 31, 2025
Balance:

FHLBNY Overnight Advances	$	—	$	—
FHLBNY Term Advances	4,265		4,265
Total Borrowings	$	4,265	$	4,265

Maximum Borrowing Capacity:
Federal Funds Purchased	$	23,000	$	23,000
Federal Home Loan Bank of New York	753,393		756,968
Federal Reserve Bank of New York	717,806		707,839

Available Borrowing Capacity:
Federal Funds Purchased	$	23,000	$	23,000
Federal Home Loan Bank of New York	719,128		722,703
Federal Reserve Bank of New York	717,806		707,839


	Balances				Weighted Average Rate 1

Final Maturity	3/31/2026		12/31/2025			3/31/2026		12/31/2025
First Year	$	—	$	—		—	%	—	%
Second Year	4,265		4,265			4.32	%	4.32	%
Third Year	—		—			—	%	—	%
Fourth Year	—		—			—	%	—	%
Total	$	4,265	$	4,265		4.32	%	4.32	%

1The effective rate on the FHLBNY Advances is 0% due to subsidized funding in the form of interest rate credits.


March 31, 2026
	Current		Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 or more Days		Total Loans Past Due
Commercial	$	—	$	—	$	—	$	—	$	—
Commercial Real Estate	—		—		—		—		—
Consumer	—		—		—		—		—
Residential	348		—		—		—		—
Total	$	348	$	—	$	—	$	—	$	—


	March 31, 2026			December 31, 2025
ACST II
Balance	$	10,000		$	10,000
Period End:
Variable Interest Rate	7.11		%	7.08		%
Fixed Interest Rate resulting from cash flow hedge agreement	4.00		%	4.00		%

ACST III
Balance	$	10,000		$	10,000
Period End:
Variable Interest Rate	5.96		%	5.93		%
Fixed Interest Rate resulting from cash flow hedge agreement	2.86		%	2.86		%


Commitments to Extend Credit and Letters of Credit
	March 31, 2026		December 31, 2025
Notional Amount:
Commitments to Extend Credit	$	478,249	$	462,855
Standby Letters of Credit	3,106		3,562
Fair Value:
Commitments to Extend Credit	$	—	$	—
Standby Letters of Credit	(4)		(2)


Schedule of Comprehensive Income (Loss)
	Three Months Ended March 31
			Tax
	Before-Tax		(Expense)		Net-of-Tax
	Amount		Benefit		Amount
2026
Net Unrealized Securities Holding (Loss) on Securities Available-for-Sale Arising During the Period	$	(2,439)	$	629	$	(1,810)
Net Unrealized Gain on Cash Flow Swap	1,216		(314)		902



Reclassification of Net Unrealized Loss on Cash Flow Hedge Agreements to Interest Expense	291		(75)		216
Amortization of Net Retirement Plan Actuarial (Gain)	(117)		30		(87)
Amortization of Net Retirement Plan Prior Service Cost	71		(19)		52
Other Comprehensive (Loss)	$	(978)	$	251	$	(727)

2025
Net Unrealized Securities Holding Gain on Securities Available-for-Sale Arising During the Period	$	8,645	$	(2,229)	$	6,416
Net Unrealized (Loss) on Cash Flow Swap	(1,554)		400		(1,154)
Reclassification of Net Unrealized (Gain) on Cash Flow Hedge Agreements to Interest Expense	(430)		111		(319)


Amortization of Net Retirement Plan Actuarial (Gain)	(96)		25		(71)
Amortization of Net Retirement Plan Prior Service Cost	83		(22)		61
Other Comprehensive Income	$	6,648	$	(1,715)	$	4,933


Changes in Accumulated Other Comprehensive (Loss) Income by Component (1)

	Unrealized Loss on Available-for-Sale Securities		Unrealized Gain on Cash Flow Swap		Defined Benefit Plan Items				Total
					Net Actuarial Gain		Net Prior Service Cost


For the quarter-to-date periods ended:
December 31, 2025	$	(12,799)	$	2,475	$	6,807	$	(520)	$	(4,037)
Other comprehensive income or loss before reclassifications	(1,810)		902		—		—		(908)
Amounts reclassified from accumulated other comprehensive income or loss	—		216		(87)		52		181
Net current-period other comprehensive income or loss	(1,810)		1,118		(87)		52		(727)

March 31, 2026	$	(14,609)	$	3,593	$	6,720	$	(468)	$	(4,764)

December 31, 2024	$	(27,292)	$	4,677	$	4,927	$	(765)	$	(18,453)
Other comprehensive income or loss before reclassifications	6,416		(1,154)		—		—		5,262
Amounts reclassified from accumulated other comprehensive income or loss	—		(319)		(71)		61		(329)
Net current-period other comprehensive income or loss	6,416		(1,473)		(71)		61		4,933

March 31, 2025	$	(20,876)	$	3,204	$	4,856	$	(704)	$	(13,520)


Reclassifications Out of Accumulated Other Comprehensive Income or Loss

Details about Accumulated Other Comprehensive Income or Loss Components	Amounts Reclassified from Accumulated Other Comprehensive Income or Loss			Affected Line Item in the Statement Where Net Income Is Presented

For the quarter-to-date periods ended:
March 31, 2026





Reclassification of Net Unrealized Loss on Cash Flow Hedge Agreements to Interest Expense	$	(291)		Interest expense
Amortization of defined benefit pension items:
Prior-service costs	(71)		(1)	Salaries and Employee Benefits
Actuarial gain	117		(1)	Salaries and Employee Benefits
	(245)			Total before Tax
	64			Provision for Income Taxes
Total reclassifications for the period	$	(181)		Net of Tax


March 31, 2025
Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense	$	430		Interest expense
Amortization of defined benefit pension items:
Prior-service costs	$	(83)	(1)	Salaries and Employee Benefits
Actuarial gain	96		(1)	Salaries and Employee Benefits
	443			Total before Tax
	(114)			Provision for Income Taxes
Total reclassifications for the period	$	329		Net of Tax




















(1) These accumulated other comprehensive gain or loss components are included in the computation of net periodic pension cost.


	Restricted Stock Awards	Weighted Average Grant Date Fair Value

Outstanding at January 1, 2026	53,564	$	26.68

Granted	71,111	32.57
Vested	(10,266)	27.50
Forfeited	(1,114)	25.92
Outstanding at March 31, 2026	113,295	$	30.31


	Shares		Weighted Average Exercise Price

Outstanding at January 1, 2026	$	229,155	$	29.83

Exercised	(7,325)		22.50
Forfeited	(2,536)		20.41
Outstanding at March 31, 2026	219,294		30.18

Vested at Period-End	210,932		30.13
Expected to Vest	8,362		31.44


	Employees'		Select Executive		Postretirement
	Pension		Retirement		Benefit
	Plan		Plan		Plans





















Net Periodic Benefit Cost
For the Three Months Ended March 31, 2026:
Service Cost (1)	$	447	$	25	$	8
Interest Cost (2)	590		65		67
Expected Return on Plan Assets (2)	(1,065)		—		—
Amortization of Prior Service Cost (2)	46		10		15
Amortization of Net (Gain) (2)	—		—		(117)
Net Periodic Cost (Benefit)	$	18	$	100	$	(27)

Plan Contributions During the Period	$	—	$	116	$	41

Estimated Future Contributions in the Current Fiscal Year	$	—	$	349	$	123

For the Three Months Ended March 31, 2025:
Service Cost (1)	$	400	$	26	$	11
Interest Cost (2)	584		72		79
Expected Return on Plan Assets (2)	(1,009)		—		—
Amortization of Prior Service Cost (2)	47		10		26
Amortization of Net (Gain) (2)	—		—		(96)
Net Periodic Cost	$	22	$	108	$	20

Plan Contributions During the Period	$	—	$	120	$	57


Earnings Per Share
	Three Months Ended
	March 31, 2026		March 31, 2025
Earnings Per Share - Basic:
Net Income	$	13,485	$	6,310
Less: income attributable to unvested stock based compensation awards	(93)		(24)
Net earnings allocated to common shareholders	13,392		6,286
Weighted Average Shares - Basic	16,381,922		16,665,138
Earnings Per Share - Basic	$	0.82	$	0.38

Earnings Per Share - Diluted:
Net earnings allocated to common shareholders	$	13,392	$	6,286
Weighted Average Shares - Basic	16,381,922		16,665,138
Dilutive Average Shares attributable to stock based compensation awards	20,689		7,714
Weighted Average Shares - Diluted	16,402,611		16,672,852
Earnings Per Share - Diluted	$	0.82	$	0.38


Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
			Fair Value Measurements at Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Fair Value of Assets and Liabilities Measured on a Recurring Basis:
March 31, 2026
Assets:
Securities Available-for-Sale:
U.S. Treasuries	$	79,802	$	79,802	$	—	$	—
U.S. Government & Agency Obligations	24,802		—		24,802		$	—
State and Municipal Obligations	200		—		200		—
Mortgage-Backed Securities	387,475		—		387,475		—
Corporate and Other Debt Securities	26,524		—		26,524		—
Total Securities Available-for-Sale	518,803		79,802		439,001		—
Equity Securities	5,742		—		5,742		—
Total Securities Measured on a Recurring Basis	524,545		79,802		444,743		—
Derivative Assets	8,996		—		8,996		—
Total Measured on a Recurring Basis	$	533,541	$	79,802	$	453,739	$	—
Liabilities:
Derivative Liabilities	3,341		—		3,341		—
Total Measured on a Recurring Basis	$	3,341	$	—	$	3,341	$	—
December 31, 2025
Assets:
Securities Available-for Sale:
U.S. Treasuries	$	80,563	$	80,563	$	—	$	—
U.S. Government & Agency Obligations	24,816		—		24,816		—
State and Municipal Obligations	200		—		200		—
Mortgage-Backed Securities	366,681		—		366,681		—
Corporate and Other Debt Securities	23,608		—		23,608		—
Total Securities Available-for-Sale	495,868		80,563		415,305		—
Equity Securities	5,597		—		5,597		—
Total Securities Measured on a Recurring Basis	501,465		80,563		420,902		—
Derivative Assets	7,935		—		7,935		—
Total Measured on a Recurring Basis	$	509,400	$	80,563	$	428,837	$	—
Liabilities:
Derivative Liabilities	3,484		—		3,484		—
Total Measured on a Recurring Basis	$	3,484	$	—	$	3,484	$	—


Schedule of Fair Values by Balance Sheet Grouping
					Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
March 31, 2026
Cash and Cash Equivalents	$	285,606	$	285,606	$	285,606	$	—	$	—
Securities Available-for-Sale	518,803		518,803		79,802		439,001		—
Securities Held-to-Maturity	65,646		65,321		—		36,176		29,145
Equity Securities	5,742		5,742		—		5,742		—
Federal Home Loan Bank and Federal Reserve Bank Stock	4,375		4,375		—		4,375		—
Net Loans	3,404,911		3,281,645		—		—		3,281,645
Accrued Interest Receivable	15,831		15,831		—		15,831		—
Derivative Assets	8,996		8,996				8,996
Deposits	4,013,939		4,011,322		—		4,011,322		—


Borrowings	4,265		4,016		—		4,016		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		18,968		—		18,968		—
Accrued Interest Payable	4,470		4,470		—		4,470		—
Derivative Liabilities	3,341		3,341		—		3,341		—

December 31, 2025
Cash and Cash Equivalents	$	214,183	$	214,183	$	214,183	$	—	$	—
Securities Available-for-Sale	495,868		495,868		80,563		415,305		—
Securities Held-to-Maturity	66,975		66,569		—		37,566		29,003
Equity Securities	5,597		5,597				5,597
Federal Home Loan Bank and Federal Reserve Bank Stock	4,372		4,372		—		4,372		—
Net Loans	3,418,771		3,275,415		—		—		3,275,415
Accrued Interest Receivable	15,520		15,520		—		15,520		—
Derivative Assets	7,935		7,935		—		7,935		—
Deposits	3,939,469		3,937,255		—		3,937,255		—

Borrowings	4,265		3,998		—		3,998		—

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	4,910		4,910		—		4,910		—
Derivative Liabilities	3,484		3,484		—		3,484		—


		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2026			March 31, 2025
Right-of-Use Assets	Premises and Equipment, Net	$	4,061		$	4,239
Lease Liabilities	Finance Leases	4,908			4,979

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,752		$	4,834
Lease Liabilities	Other Liabilities	4,940			5,029

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	47		$	47
Operating Outgoing Cash Flows From Operating Leases		169			188
Financing Outgoing Cash Flows From Finance Leases		21			26
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		716			376
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		24.14			25.09
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		9.32			9.86
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.49		%	3.45		%


Lease cost information for Arrow's leases is as follows:
	Three Months Ended
	March 31, 2026		March 31, 2025
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	47		47
Operating Lease Cost	210		215
Short-term Lease Cost	21		9
Variable Lease Cost	51		37
Total Lease Cost	$	373	$	352


Future Lease Payments at March 31, 2026 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2027	$	882	$	267
3/31/2028	833		268
3/31/2029	689		268
3/31/2030	626		280
3/31/2031	611		292
Thereafter	2,198		6,356
Total Undiscounted Cash Flows	$	5,839	$	7,731
Less: Net Present Value Adjustment	(899)		(2,823)
Lease Liability	$	4,940	$	4,908


Derivatives Not Designated as Hedging Instruments - Interest Rate Swap Agreements
	March 31, 2026		March 31, 2025
Fair value adjustment included in other assets	$	3,341	$	4,538
Fair value adjustment included in other liabilities	3,341		4,538
Notional amount	117,485		103,846


Derivatives Designated as Hedging Instruments - Cash Flow Hedge Agreements
	Three Months Ended		Three Months Ended
	March 31, 2026		March 31, 2025
Fair value adjustment included in other assets	$	427	$	979
Amount of gain (loss) recognized in AOCI	408		(591)
Amount of gain reclassified from AOCI interest expense	130		187





Non-GAAP Reconciliations and Financial Measures
Non-GAAP Financial Measures Reconciliation: Tangible Equity, Tangible Book Value per Share 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 our financial performance. See "Use of Non-GAAP Financial Measures" on page 38.
	3/31/2026			3/31/2025
Total Stockholders' Equity (GAAP)	$	440,143		$	404,409
Less: Goodwill and Other Intangible assets, net	25,481			25,743
Tangible Equity (Non-GAAP)	$	414,662		$	378,666

Period End Shares Outstanding	16,527			16,670
Tangible Book Value per Share (Non-GAAP)	$	25.09		$	22.72
Net Income	13,485			6,310
Return on Average Tangible Equity (Net Income/Tangible Equity - Annualized)	13.23		%	6.76		%

Non-GAAP Financial Measures Reconciliation: Net Interest Margin, Tax-Equivalent is the ratio of our 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 our financial performance. See "Use of Non-GAAP Financial Measures" on page 38.
	3/31/2026			3/31/2025
Interest Income (GAAP)	$	53,794		$	50,366
Add: Tax-Equivalent adjustment (Non-GAAP)	123			155
Interest Income - Tax Equivalent (Non-GAAP)	$	53,917		$	50,521
Net Interest Income (GAAP)	$	36,130		$	31,357
Add: Tax-Equivalent adjustment (Non-GAAP)	123			155
Net Interest Income - Tax Equivalent (Non-GAAP)	$	36,253		$	31,512
Average Earning Assets	4,222,574			4,143,939
Net Interest Margin (Non-GAAP)*	3.48		%	3.08		%

* Quarterly ratios have been annualized.

Non-GAAP Financial Measures: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes that the efficiency ratio provides investors with information that is useful in understanding our financial performance. Arrow defines efficiency ratio as the ratio of our non-interest expense to our net gross income (which equals tax-equivalent net interest income plus non-interest income, as adjusted). There is no GAAP financial measure that is closely comparable to the efficiency ratio. See "Use of Non-GAAP Financial Measures" on page 38.
Efficiency Ratio Calculation:	3/31/2026			3/31/2025
Non-Interest Expense	$	26,865		$	26,045
Less: Intangible Asset Amortization	72			81
Net Non-Interest Expense	$	26,793		$	25,964
Net Interest Income, Tax-Equivalent	$	36,253		$	31,512
Non-Interest Income	8,628			7,839
Less: Net Gain (Loss) on Securities	145			317
Net Gross Income	$	44,736		$	39,034
Efficiency Ratio	59.89		%	66.52		%











































Average Consolidated Balance Sheets and Net Interest Income Analysis
(GAAP Basis)
(Dollars In Thousands)

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 over $250	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		47		3.88		4,997		47		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	%


Net Interest Income Rate and Volume Analysis
(GAAP Basis)
(Dollars In Thousands)
	Quarter ended March 31, 2026 compared to quarter ended March 31, 2025 Increase (Decrease)
Interest and Dividend Income:	Volume		Rate		Total
Interest-Bearing Bank Balances	$	1,502	$	(1,448)	$	54
Investment Securities:
Fully Taxable	(1,707)		2,628		921
Exempt from Federal Taxes	(386)		263		(123)
Loans	(6,369)		8,945		2,576
Total Interest and Dividend Income	(6,960)		10,388		3,428
Interest Expense:
Deposits:
Interest-Bearing Checking Accounts	(734)		1,031		297
Savings Deposits	3,788		(4,555)		(767)
Time Deposits over $250	358		(973)		(615)
Other Time Deposits	2,014		(2,107)		(93)
Total Deposits	5,426		(6,604)		(1,178)
Borrowings and Finance Leases	973		(973)		—
Long-Term Debt	(43)		(124)		(167)
Finance Leases	(3)		3		—
Total Interest Expense	6,353		(7,698)		(1,345)
Net Interest Income	(13,313)		18,086		4,773