Arrow Financial Corporation · NASDAQ:AROW
Arrow Financial — Shareholder Meeting (June 2025)
39 slides from Arrow Financial's shareholder meeting presentation, Jun 4, 2025
Slide 1: Annual Meeting of Shareholders June 4, 2025
Annual Meeting of Shareholders June 4, 2025
Slide 2: Welcome
Welcome —=\RROW Financial | Corporation
Slide 3: Today's Agenda
Today’s Agenda Welcome Arrow Overview Business Meeting Financials Positioned for Growth Closing
Slide 4: Safe Harbor Statement
Safe Harbor Statement The information in this presentation may contain statements based on management’s beliefs, assumptions, expectations, estimates and/or projections about the future. Such "forward-looking statements," as defined in Section 21E of the Securities Exchange Act of 1934, as amended,
Slide 5: Acknowledgements
Acknowledgements Annual Meeting Technical Support Michele Kloeppel and Bill Vega Attorneys Justin Murberg, CPA Audit Senior Manager Frank Arren Inspector of Elections
Slide 6: Arrow Overview
Arrow Overview -=\RROW Financial Corporation
Slide 7: Our Family of Companies
Our Family of Companies ==\RROW Financial Corporation —=\RROWBANK QE. INSURANCE =\RROW Financial Corporation ee
Slide 8: Our Market as of March 31, 2025
Our Market as of March 31, 2025 Insurance Offices Bank Branches 938 • $4.5 billion in assets • 580 plus employees • Primary service area population of more than 1.1 million
Slide 9: Our Guiding Language
Our Guiding Language To strengthen financial lives within our communities through the power of care, capability, commitment and collaboration. To build meaningful and long-lasting relationships with our customers, employees and shareholders. Our Mission Statement: Our Vision Statement:
Slide 10: Our Values
Our Values We are your neighbors We believe a great team delivers great results We continuously improve We do the right thing the right way We make data-driven decisions We value differences.
Slide 11: Our Philanthropy
Our Philanthropy Community Contributions OUR 2024 GIVING IN ACTION $776,000 2270: from employee DONATED TO OUR COMMUNITIES — contributions a EMPLOYEE PROF 261220 6052: More than $3.4 million donated in the last six years. Learn more: arrowbank.com/earing =\RROW Financial Corporation
Slide 12: Welcome To Our New Directors
Welcome To Our New Directors James M. Dawsey President, MLB Construction Services, LLC Daniel J. White Retired Managing Partner, KPMG LLP Albany Dr. Kristine D. Duffy President, SUNY Adirondack Philip Morris CEO, Proctors Collaborative
Slide 13: Thank You, Mr. Dake
Thank You, Mr. Dake Gary C. Dake President, Stewart’s Shops Corp.
Slide 14: Our Directors
Our Directors Mark L. Behan Founder and President, Behan Communications, Inc. Tenée R. Casaccio, AIA Chair President, JMZ Architects and Planners, P.C. Gregory J. Champion Retired Chief Legal Officer, Syncromune, Inc. James M. Dawsey President, MLB Construction Services, LLC David S. DeMarco Preside
Slide 15: In Memoriam
In Memoriam Herbert A. Heineman, Jr. Michael F. Massiano, Jr. (Chairman Emeritus) Richard J. Reisman, DMD
Slide 16: Our Executive Management
Our Executive Management Brooke Pancoe EVP and Chief Human Resources Officer Marc Yrsha SEVP and Chief Banking Officer Andrew Wise SEVP and Chief Risk Officer Michael Jacobs EVP and Chief Information Officer Penko K. Ivanov SEVP, Chief Financial Officer, Treasurer and Chief Accounting Officer David
Slide 17: Thank You, Mr. Kaiser
Thank You, Mr. Kaiser David Kaiser SEVP and Chief Credit Officer
Slide 18: Our Senior Management
Our Senior Management Arleen Girard SVP and Director of Business Services Douglas Thorn SVP and Director of Insurance Operations Annette Reitano SVP and Director of Marketing and Communications Scott Duggleby SVP and Director of Wealth Management Ginny Sullivan SVP and Director of Residential Lendin
Slide 19: Business Meeting
Business Meeting -=\RROW Financial Corporation
Slide 20: 2025 Shareholder Voting Proposals
2025 Shareholder Voting Proposals 1. The election of four Class C Directors to three-year terms, one Class A director to the remainder of their term and one Class B director to the remainder of their term. 2. Advisory approval of our 2024 executive compensation (“Say-on-Pay”). 3. Ratification of the
Slide 21: Financials
Financials —=\RROW Financial | Corporation
Slide 22: Financial Highlights
Financial Highlights In 2024, we delivered loan growth, an expanded net interest margin and successfully executed on select balance sheet strategies – delivering solid financial results while building the foundation for a more successful 2025.
Slide 23: 2024 Summary
2024 Summary Total Assets $4.3B up 3.3% from prior year $3.4B up 5.8% from prior year Total Loans Earnings Per Share (Reported) $1.77 0.70% Return on Average Assets Total loans do not include FV hedge mark of $2.2M Earnings per share were negatively impacted by $0.28 in 2024 resulting from charges f
Slide 24: Loans and Deposits: History of strong performance
$2,196 $2,386 $2,595 $2,668 $2,983 $3,207 $3,392 2018 2019 2020 2021 2022 2023 2024 Loans Loans and Deposits Dollars in millions History of strong performance Total loans do not include FV hedge mark of $5.8M and $2.2M in 2023 and 2024, respectively. $2,346 $2,616 $3,235 $3,550 $3,498 $3,513 $3,558
Slide 25: Key Metrics
Key Metrics Core 2024 excludes several items that are deemed non-recurring, one-time or linked to specific events that are not reflective of our ongoing run-rate. Examples of such items are unification and acquisition related expenses, losses on repositioning of the securities portfolio and carry-ov
Slide 26: Strong Capital Position
Strong Capital Position 9.60% 12.71% 13.35% 14.47% 8.78% 4.00% 4.50% 6.00% 8.00% 0% 2% 4% 6% 8% 10% 12% 14% 16% Tier 1 Leverage Ratio Common Equity Tier 1 Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Tangible Common Equity Select Capital Ratios – Arrow Minimum Regulatory Capital Ratios
Slide 27: 1Q 2025 Performance
A ~ 4Q 2025 Performance Z -=\RROW Financial Corporation
Slide 28: 1Q 2025 Highlights
1Q 2025 Highlights ➢ Reported Net Income of $6.3 million (EPS of $0.38), includes non-core unification expenses of $0.6M ($0.03/share) ➢ Record Net Interest Income of $31.4 million ➢ Fully tax equivalent Net Interest Margin of 3.08% vs. 2.85% for the 4th quarter of 2024 ➢ Loan growth ~$22M ➢ Share r
Slide 29: 1Q 2025 Financial Summary
1Q 2025 Financial Summary $22.40 $22.72 4Q24 1Q25 Fully Diluted Tangible Book Value 2.85% 3.08% 4Q24 1Q25 FTE Net Interest Margin (NIM) $3,392 $3,414 4Q24 1Q25 Loan Balances Dollars in millions $3,558 $3,668 4Q24 1Q25 Deposit Balances Dollars in millions Deposits exclude $270M of brokered certificat
Slide 30: Positioned for Growth
A “Positioned for Growth Z -=\RROW Financial Corporation
Slide 31: Overall Strong Performance
Overall Strong Performance Unified Our Brand Expanded Our Presence Enhanced Security Delivered Strong Financial Performance
Slide 32: Arrow Bank: One Name, One Vision
Arrow Bank: One Name, One Vision
Slide 33: Growing Our Business
Growing Our Business • Whitehall Branch Acquisition • Total of 9 branches in Washington County • Strategic growth supports customers needs • A&B Agency, Inc. • Expanded reach in Capital Region, Hudson Valley and Mohawk Valley • Enhanced employee benefits solutions
Slide 34: Advancing Technology
Advancing Technology • Joined Allpoint ATM Network – 50,000+ fee-free ATMs globally • Access at top retailers and pharmacies • Launched new digital wealth platform with enhanced tools and features • Supporting smarter financial decisions anytime, anywhere
Slide 35: Safer Banking, Together
Safer Banking, Together Check Fraud Scams Recover Funds Track Cases Work with authorities, other banks and attorneys Minimize Loss – Bank and Customer Educate – Internally and Externally
Slide 36: Awards
Awards 72CONSECUTIVE QUARTERS Arrow Bank Piper Sandler Sm-All Stars: Class of 2024 List Arrow Financial Corporation
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Slide 38: Your Arrow
“Your -=\RROW Financial Corporation
Slide 39: Annual Meeting of Shareholders June 4, 2025
Annual Meeting of Shareholders June 4, 2025