Arrow Financial Corporation · NASDAQ:AROW
Arrow Financial — Shareholder Meeting (June 2026)
43 slides from Arrow Financial's shareholder meeting presentation, Jun 3, 2026
Slide 1: Annual Meeting of Shareholders June 3, 2026
Annual Meeting of Shareholders June 3, 2026
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 regarding management’s beliefs, assumptions, expectations, estimates and/or projections about Arrow’s future results and financial condition. Such "forward-looking statements," as defined in Section 21E of the Securiti
Slide 5: Merger Related Disclaimers
Merger Related Disclaimers Additional Information and Where to Find It In connection with the proposed transaction, Arrow has filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission (the “SEC”) to register the shares of Arrow common stock to be issued in connectio
Slide 6: Acknowledgements
Acknowledgements Annual Meeting Technical Support Justin Murberg, CPA Audit Senior Manager Frank Arren Inspector of Elections Benjamin M. Azoff Attorneys
Slide 7: Arrow Overview
Arrow Overview -=\RROW Financial Corporation
Slide 8: Our Family of Companies
Our Family of Companies ==\RROW Financial Corporation —=\RROWBANK QE. INSURANCE =\RROW Financial Corporation ee
Slide 9: Our Market as of April 30, 2026
Our Market as of April 30, 2026 Insurance Offices Bank Branches 938 • $4.5 billion in assets • 575 plus employees • Primary service area population of more than 1.1 million
Slide 10: Our Philanthropy
Our Philanthropy IN ACTION We're so proud to serve you and our communities EMPLOYEE MILLION $4.3 Smaak $1,054,048 32:25: DONATED TO OUR COMMUNITIES. Ey! ==\RROW Financial Corporation
Slide 11: Welcome, Mr. Jahnel
Welcome, Mr. Jahnel Darrin M. Jahnel CEO and Co-Founder, Jahnel Group Effective November 25, 2025
Slide 12: Thank You, Ms. Miller
Thank You, Ms. Miller Elizabeth A. Miller President and CEO, Miller Mechanical Services, Inc.
Slide 13: Our Directors
Our Directors David S. DeMarco President and CEO, Arrow Financial Corporation Colin L. Read, PhD Professor – Department of Economics and Finance, SUNY Plattsburgh James M. Dawsey President, MLB Construction Services, LLC Raymond F. O’Conor Retired President and CEO, Saratoga National Bank Dr. Kristi
Slide 14: Our Executive Management
Our Executive Management Michael Jacobs EVP and Chief Information Officer Penko K. Ivanov SEVP, Chief Financial Officer, Treasurer and Chief Accounting Officer David S. DeMarco President and CEO Brooke M. Pancoe EVP and Chief Human Resources Officer Marc J. Yrsha SEVP and Chief Banking Officer Andre
Slide 15: Our Senior Management
Our Senior Management Douglas Thorn SVP and Director of Insurance Operations Leslie Munger SVP and Director of Compliance and Risk Ginny Sullivan SVP and Director of Residential Lending Kurt Moser SVP and Director of Corporate Banking Wendy Lanzone SVP and CEX Director of Deposit and Loan Services D
Slide 16: Business Meeting
Business Meeting -=\RROW Financial Corporation
Slide 17: 2026 Shareholder Voting Proposals
2026 Shareholder Voting Proposals 1. The election of four Class A Directors to three (3) year terms, each to serve until their successor has been duly elected and qualified. 2. Advisory approval of our 2025 executive compensation (“Say-on-Pay”). 3. Ratification of the selection of Crowe LLP ("Crowe"
Slide 18: Financials
Financials —=\RROW Financial | Corporation
Slide 19: 2025 Financial Highlights
2025 Financial Highlights 2025 was a transformative year, delivering substantial EPS growth, ROA of 1.00% and expanded Net Interest Margin to almost 3.20%. 2025 also marked a return to double- digit Return on Equity for Arrow, Net charge-offs below 20 bps and strong credit metrics.
Slide 20: 2025 Summary
20 Financial information provided in this document is unaudited. Return on Average Assets 1.00% Earnings Per Share $2.65 Record FTE NIM 3.19% 2025 Return on Average Equity 10.66% TBV/Share $24.71; +10.3% YoY Net Charge-Offs 0.19% NPLs $8.5M; 0.24% of Total Loans 2025 saw strong growth in EPS, ROA, N
Slide 21: Loans and Deposits
$2,668 $2,983 $3,207 $3,392 $3,453 2021 2022 2023 2024 2025 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. $3,550 $3,498 $3,513 $3,558 $3,639 2021 2022 2023 2024 2025 Deposits 0.6%
Slide 22: Key Metrics
Key Metrics 1.28% 1.21% 0.74% 0.70% 1.00% 2021 2022 2023 2024 2025 Return on Average Assets 14.09% 13.55% 8.29% 7.72% 10.66% 2021 2022 2023 2024 2025 Return on Average Equity $0.96 $1.03 $1.07 $1.09 $1.14 2021 2022 2023 2024 2025 Cash Dividends Paid Per Share $2.92 $2.86 $1.77 $1.77 $2.65 2021 2022
Slide 23: Strong Capital Position
Strong Capital Position 9.68% 13.10% 13.74% 14.86% 9.19% 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 24: 1Q 2026 Performance
A “ _4Q 2026 Performance Z -=\RROW Financial Corporation
Slide 25: 1Q 2026 Highlights
1Q 2026 Highlights ➢ 1Q26 Net Income of $13.5 million, or $0.82 EPS • 1Q26 EPS driven by NIM expansion (loan & deposit repricing, reinvestment rate on AFS securities) • 1Q26 included ~$800k for pre-tax merger-related expenses (MRE); lowering Core EPS of $0.85 by $0.03 • 1Q26 Effective Tax Rate (ETR)
Slide 26: 1Q 2026 Financial Summary
1Q 2026 Financial Summary $24.71 $25.09 4Q25 1Q26 Fully Diluted Tangible Book Value 3.25% 3.48% 4Q25 1Q26 FTE Net Interest Margin (NIM) 1.24% 1.29% 4Q25 1Q26 Core Return on Assets $3,639 $3,714 4Q25 1Q26 Deposit Balances Dollars in millions Deposits exclude $300M of brokered certificate of deposits
Slide 27: Positioned for Growth
A “Positioned for Growth Z -=\RROW Financial Corporation
Slide 28: Overall Strong Performance
Overall Strong Performance Unified Our Brand Expanded Our Presence Enhanced Security Delivered Strong Financial Performance
Slide 29: One Bank. One Arrow.
One Bank. One Arrow. GETBACK = e TO BANKING FURROW EINK: ON MONDAY WEEKEND -ARROWBANK From Point @ to Anywhere JULY 18-20 where do you want to go today? ==\RROW Financial Corporation ee e
Slide 30: Investing in Our Branch Network
Investing in Our Branch Network • Our branches remain central to the Arrow experience. • Fully renovated our Queensbury branch in 2025. • We will continue to invest in our locations to ensure our branches reflect the strength of our brand and provide the best environment for personalized service.
Slide 31: Advancing Technology
Launched Digital Wallet available on Apple Pay , Google Pay or Samsung Wallet , giving customers enhanced convenience and flexibility in how they manage and access their accounts Advancing Technology One Bank Weekend unified our banking systems, enabling greater efficiency, consistency and scalabili
Slide 32: Safer Banking, Stronger Communities
Safer Banking, Stronger Communities Launched an expanded fraud education center Offer accessible fraud tools and resources to help customers stay informed Fraud prevention is a key pillar of our social media strategy Share timely alerts, tips and educational content We remain committed to safer bank
Slide 33: Expanding Wealth and Insurance Solutions
Expanding Wealth and Insurance Solutions • Growing our Wealth Management and Insurance businesses remains a key strategic priority • Following the 2024 acquisitions of assets from A&B Agency, Inc., our Upstate Agency team successfully integrated the new book of business while maintaining 100% client
Slide 34: Celebrating Years
Celebrating 175 Years TH GREATEST SIND WaRICnNy eon 1851-2026 FOPLUNE Peank you XN | y > for being a part of our ee and our future. =\RROW Financial Corporation ee e
Slide 35: Strategic Merger and Acquisition
Strategic Merger and Acquisition to acquire
Slide 36: What This Means for Arrow Bank
What This Means for Arrow Bank Greater competitive advantage and new market growth Remain focused on community banking and increase our impact even more Opportunities for staff to expand skillsets and widen their roles Great time to be an Arrow shareholder
Slide 37: Combined Footprint
Combined Footprint Our combined footprint shows Arrow’s commitment to the Adirondack region while expanding into the Mohawk Valley. • Arrow Financial Corp. (38) • Adirondack Bancorp, Inc. (20)
Slide 38: Combined Pro Forma Financials
Combined Pro Forma Financials as of 12/31/2025 • Total assets $5.4 billion • Total deposits $4.8 billion • Total gross loans of $4.1 billion • Arrow’s total assets will increase by approximately $1 billion Arrow’s total assets will be approximately $5.4 billion
Slide 39: Welcome, Rocco F. Arcuri, Sr.
Welcome, Rocco F. Arcuri, Sr. Rocco F. Arcuri, Sr. Current Adirondack President and CEO
Slide 40: Awards
Awards 76CONSECUTIVE QUARTERS Arrow Bank Ranked third in Capital Region deposit rankings Arrow Bank PR Daily 2025 Marketing Awards Finalist for Best Rebrand or Refresh Arrow Bank
Slide 41: Our Team
Our Tea =\RROW Financial Corporation °
Slide 42: Your Arrow
“Your -=\RROW Financial Corporation
Slide 43: Annual Meeting of Shareholders June 3, 2026
Annual Meeting of Shareholders June 3, 2026