Interest rate risk
Changes in rates affect funding costs, loan yields, deposit pricing, and the value of the securities portfolio.
- Scope
- Net interest margin and securities portfolio
- Materiality
- high
Arrow Financial Corporation
Arrow Financial Corp. is a bank holding company headquartered in Glens Falls, New York, with one wholly owned banking subsidiary, Arrow Bank National Association. Its business is centered on community and regional banking, serving depositors, consumers, and small- to mid-sized businesses across its local market area. In addition to core banking, Arrow operates related businesses including an insurance agency, a registered investment adviser, trust services, and a REIT. The company also sources indirect consumer auto loans through a dealer network across New York and Vermont, giving it a mix of relationship-based and specialty lending activities.
| % | |
|---|---|
| Core banking | 55% Deposit gathering, transaction accounts, and general commercial and consumer banking services offered through Arrow Bank branches. |
| Lending | 30% Commercial, mortgage, consumer, and indirect automobile loans originated through branches and dealer relationships. |
| Wealth and trust services | 7% Retirement planning, trust and estate administration, and employee benefit plan services for individuals and businesses. |
| Insurance | 5% Property and casualty insurance plus group health care and life insurance brokerage and servicing through the insurance agency subsidiary. |
| Investment advisory and other subsidiaries | 3% Registered investment advisory services, proprietary mutual fund support, and REIT-related activities. |
Arrow primarily serves households, local depositors, and small- to mid-sized businesses in its regional footprint...
- Retail and household banking customersprimary
Individuals and families using deposits, consumer loans, mortgages, and transaction services for everyday banking needs.
- Small and mid-sized business customersprimary
Local businesses that borrow for working capital, equipment, and real estate and maintain operating and deposit relationships.
- Indirect auto lending borrowerssecondary
Consumers financing vehicle purchases through Arrow-funded loans sourced from a dealer network in New York and Vermont.
- Wealth, trust, and retirement clientssecondary
Individuals and corporate plan sponsors that buy fiduciary, estate, and retirement administration services.
- Insurance customerssecondary
Existing and local customers purchasing property and casualty, group health, and life insurance products.
Arrow’s business is concentrated in the communities it serves in upstate New York and nearby markets, with its main...
- •Headquartered in Glens Falls, New York, with local decision-making centered in the region
- •38 bank branches support community deposit gathering and relationship lending
- •9 insurance offices extend the non-bank franchise across the service area
- •Indirect auto lending reaches dealers throughout New York and Vermont
- •Business is concentrated in a regional footprint, so local economic trends matter
- •No country-level international revenue disclosure was provided
Arrow’s strategy is built around maintaining a stable funding base, disciplined liquidity management, and relationship...
01
Strengthen liquidity and funding resilienceshort-term
A deposit-funded community bank depends on reliable access to cash to meet loan growth and deposit runoff without sacrificing earnings.
02
Integrate the unified bank structuremedium-term
Combining the former subsidiary banks should reduce duplication, simplify operations, and support a clearer market identity.
03
Deepen regional relationship bankingmedium-term
Local deposit and lending relationships are the core competitive advantage against larger banks and non-bank lenders.
Arrow faces the typical risks of a regional bank, including intense competition, interest rate sensitivity, credit...
Credit losses and allowance adequacy
The bank lends to consumers and small businesses, so economic weakness can increase delinquencies and provision expense.
- Scope
- Commercial, mortgage, consumer, and indirect auto loans
- Materiality
- high
Liquidity and funding risk
Arrow depends on deposits and subsidiary cash flows, and unexpected runoff could limit lending or capital returns.
- Scope
- Parent company dividends, loan growth, and contingency funding
- Materiality
- high
Cybersecurity and data security
Online banking, payments, and customer data create exposure to breaches, service disruption, and remediation costs.
- Scope
- Digital channels, customer information, and third-party systems
- Materiality
- high
Competitive pressure
Larger banks and non-bank lenders may offer better pricing, broader products, or more convenience.
- Scope
- Regional deposit and lending markets
- Materiality
- medium
Allowance for credit losses
Provision expense and reserve levels
Available-for-sale securities valuation
Equity and liquidity flexibility
Non-GAAP adjustments
Reported profitability trends
Intangible asset amortization
Non-interest expense
: 11/08/2026