Arrow Finl Stock Price, News & Analysis

Arrow Financial Corporation (NASDAQ: AROW) is a bank holding company in the commercial banking industry, operating within the finance and insurance sector. According to company disclosures, Arrow Financial Corporation is headquartered in Glens Falls, New York and serves the financial needs of northeastern New York. The company’s primary banking subsidiary is Arrow Bank National Association, described as a full-service commercial bank, and it also owns Upstate Agency, LLC, a comprehensive insurance agency. Other subsidiaries referenced in company news include North Country Investment Advisers, Inc.

As a holding company, Arrow Financial Corporation provides advisory and administrative services and coordinates the general policies and operations of its banking subsidiaries. Based on the company’s description and earnings releases, Arrow’s business model centers on traditional commercial banking and related financial services. The company reports that it offers financial products that include online and mobile banking, mortgages, commercial loans, investments and other banking services. It also provides lending services such as commercial and industrial lending to small and mid-sized companies, mortgage lending for residential and commercial properties, and consumer installment and home equity financing. The company identifies interest income, as well as fees and commissions earned through its subsidiaries, as key sources of revenue.

Banking and Financial Services Focus

Arrow’s earnings releases describe a loan portfolio that includes residential real estate loans, commercial loans and other loan products. The company highlights loan growth across its portfolio and discusses metrics such as loan-to-deposit ratios, net interest income, net interest margin and allowance for credit losses. These disclosures indicate that Arrow’s core operations are centered on gathering deposits and extending credit, while managing interest rate spreads and credit risk.

The company notes that its banking subsidiary, Arrow Bank National Association, is a full-service commercial bank, which in context includes deposit products and lending activities. Arrow also references wealth management revenue and insurance commissions within its non-interest income, reflecting contributions from North Country Investment Advisers, Inc. and Upstate Agency, LLC. These activities supplement interest-based revenue with fee-based income streams related to fiduciary activities, insurance and other services to customers.

Regional Community Banking Orientation

In multiple news releases, Arrow states that it serves the financial needs of northeastern New York. The company has described itself as a multi-bank holding company and, in earlier disclosures, as the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Subsequent releases explain the unification of these banking subsidiaries into a single entity renamed Arrow Bank National Association. The company also reports acquisitions of a bank branch in Whitehall, New York and the assets of a local insurance agency, as well as participation in the Allpoint ATM Network to expand customer ATM access.

These disclosures underscore Arrow’s focus on community and regional banking, with an emphasis on serving customers in its defined geographic area. The company also highlights recognition such as being named to the Piper Sandler Sm-All Stars: Class of 2024 list of top-performing small-cap banks and thrifts, and strong ratings from BauerFinancial for its banking subsidiaries, which it cites as indicators of performance and capital strength. These recognitions are presented by the company as external validations of its financial condition and operating track record.

Risk Management, Capital and Regulatory Context

Arrow’s SEC filings and earnings releases provide detail on capital ratios, asset quality and allowance for credit losses. The company reports regulatory capital ratios, including Common Equity Tier 1 Capital Ratio and Total Risk-Based Capital Ratio, and notes that Arrow and its banking subsidiaries exceed “well capitalized” regulatory standards. It also discloses nonperforming assets, net charge-offs and the allowance for credit losses as a percentage of loans, emphasizing asset quality and credit risk management.

The company’s communications include safe harbor statements that reference factors such as economic conditions, interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, competition, and regulatory changes as potential influences on future results. These statements indicate that Arrow operates within the regulatory and economic environment typical for U.S. commercial banks and acknowledges the uncertainties inherent in banking activities.

Corporate Structure and Subsidiaries

Arrow Financial Corporation describes itself as the parent of:

• Arrow Bank National Association, a full-service commercial bank formed through the unification of its prior subsidiary banks.
• Upstate Agency, LLC, which the company describes as a comprehensive insurance agency.
• North Country Investment Advisers, Inc., which is referenced in company news as a subsidiary involved in investment-related activities.

In earlier news, Arrow referred to Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company as banking subsidiaries. Later releases and earnings commentary explain a process of unifying these banks into Arrow Bank National Association, including a system conversion and operational merger of the banking subsidiaries. The company reports non-core unification expenses related to project management and information technology costs for this conversion.

Shareholder Matters and Governance

Arrow’s SEC filings and press releases discuss several matters of interest to shareholders. The company reports regular quarterly cash dividends declared by its Board of Directors, and it has disclosed share repurchase activity and repurchase authorizations. For example, the company has described repurchases of Arrow common stock under existing authorizations and the Board’s approval of additional repurchase capacity.

The company also discloses a shareholder derivative complaint filed by a stockholder and the preliminary approval of a stipulation and agreement of settlement by a federal court, noting that the settlement has no material financial impact on its results of operations or financial position. Governance-related disclosures include the appointment of new directors to the Board of Directors and the compensation of directors in accordance with the company’s director compensation policy, as described in its proxy statement. Arrow’s filings also describe changes in senior leadership roles and professional services arrangements with former executives.

Earnings, Performance Metrics and Non-GAAP Measures

Arrow provides detailed quarterly and annual financial information through earnings releases furnished on Form 8-K. These releases discuss net income, earnings per share, net interest income, net interest margin, return on average assets, loan and deposit balances, and capital levels. The company also presents non-GAAP financial measures such as tangible book value, tangible equity, return on tangible equity, tax-equivalent net interest income, tax-equivalent net interest margin and efficiency ratio. Arrow states that these non-GAAP measures are commonly used by financial institutions and are intended as supplemental information to GAAP results.

In its commentary, Arrow attributes changes in net interest income and margin to factors such as yield expansion on earning assets, moderating or stabilizing costs of interest-bearing liabilities, and shifts in deposit composition. The company also explains drivers of its provision for credit losses, including loan growth, charge-offs, portfolio mix and changes in economic forecast factors used in its credit loss models.

Community and Market Recognition

Arrow’s news releases highlight community involvement and recognition. The company notes contributions to the communities it serves, both financially and through volunteer efforts. It also reports that its banking subsidiaries have maintained 5-Star ratings from BauerFinancial for numerous consecutive quarters, and that Arrow was named to the Piper Sandler Sm-All Stars: Class of 2024 list of top-performing small-cap banks and thrifts. These items are presented by the company as evidence of consistent performance and community engagement.

Frequently Asked Questions (FAQ)

• What does Arrow Financial Corporation do?
  Arrow Financial Corporation is a bank holding company in the commercial banking industry. It coordinates the policies and operations of its subsidiaries, which provide financial products such as online and mobile banking, mortgages, commercial loans, investments and other banking services, along with insurance and investment-related services.
• Where is Arrow Financial Corporation headquartered and what region does it serve?
  The company states that it is headquartered in Glens Falls, New York and serves the financial needs of northeastern New York through its banking and related financial services subsidiaries.
• Which subsidiaries are part of Arrow Financial Corporation?
  Arrow identifies Arrow Bank National Association as its full-service commercial bank and Upstate Agency, LLC as its comprehensive insurance agency. It also lists North Country Investment Advisers, Inc. as a subsidiary involved in investment-related activities.
• How does Arrow Financial Corporation generate revenue?
  According to the company’s description and earnings releases, key sources of revenue include interest income from loans and investments, as well as fees and commissions from fiduciary activities, insurance operations and other services provided through its subsidiaries.
• What types of lending does Arrow offer?
  The company reports that it offers commercial and industrial lending to small and mid-sized companies, mortgage lending for residential and commercial properties, and consumer installment and home equity financing, alongside other loan products described in its financial disclosures.
• What is Arrow Bank National Association?
  Arrow Bank National Association is described as a full-service commercial bank and a primary subsidiary of Arrow Financial Corporation. Company releases explain that it was formed through the operational merger and unification of Arrow’s prior banking subsidiaries into a single bank platform.
• What role do insurance and wealth management play in Arrow’s business?
  Arrow reports non-interest income from insurance commissions and fiduciary activities. Upstate Agency, LLC is described as a comprehensive insurance agency, and North Country Investment Advisers, Inc. is identified as an investment-related subsidiary, contributing fee-based revenue such as wealth management and insurance commissions.
• How does Arrow describe its capital and asset quality?
  In its earnings releases, Arrow reports that its regulatory capital ratios exceed “well capitalized” standards and provides details on its allowance for credit losses, net charge-offs and nonperforming assets. The company characterizes asset quality as solid based on these measures.
• Has Arrow Financial Corporation been involved in shareholder litigation?
  Yes. The company discloses a shareholder derivative complaint filed in federal court and reports that a stipulation and agreement of settlement has received preliminary court approval, subject to final approval. Arrow states that the settlement has no material financial impact on its financial position or results of operations.
• Does Arrow Financial Corporation pay dividends or repurchase shares?
  Arrow’s Board of Directors regularly declares quarterly cash dividends, as reported in multiple Form 8-K filings. The company has also disclosed share repurchases and Board authorizations for additional repurchase capacity for Arrow common stock.