250 Glen Street
			Glens Falls, NY 12801
			NASDAQ® Symbol: “AROW“
			Website: arrowfinancial.com
			Media Contact: Rachael Murray
			P: (518) 742-6505
			E: rachael.murray@arrowbank.com
			FOR IMMEDIATE RELEASE

Arrow Reports 2nd Quarter Net Income of $10.8 Million, or $0.65 per Share, and Declares 3rd Quarter Dividend of $0.29 per Share

GLENS FALLS, N.Y. (July 24, 2025) – Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or "the Company") announced financial results for the three-month period ended June 30, 2025. Reported net income for the second quarter of 2025 was $10.8 million and fully diluted earnings per share ("EPS") was $0.65, versus net income of $6.3 million and EPS of $0.38 for the first quarter of 2025.

The Board of Directors of Arrow declared a quarterly cash dividend of $0.29 per share, an increase of $0.01 or 3.6% from the prior quarter, payable August 25, 2025 to shareholders of record as of August 11, 2025.

This quarter's results include approximately $1.1 million ($0.05 per share) of non-core unification costs related to Arrow’s system conversion and operational merger of its two banking subsidiaries, which were successfully completed in July 2025.

This Earnings Release and related commentary should be read in conjunction with the Company's July 24, 2025 Form 8-K and related Second Quarter 2025 Investor Presentation, which can also be found on Arrow's website: arrowfinancial.com/documents/investor-presentations.

Arrow President and CEO David S. DeMarco:

"We delivered strong second-quarter results, including return on average assets reaching 1.00%, with net interest margin and other key metrics approaching our strong historic levels. Simultaneously, we recently successfully completed our bank unification by consolidating our multi-bank systems and bank software applications into a single core banking platform, the last major milestone in our rebrand to Arrow Bank. This was an important step on our path toward improving customer experience and gaining operational efficiencies, further solidifying our position as a premier community bank under a strong, single recognizable brand. Our amazing team worked incredibly hard to make this transition as easy as possible for our customers, and I want to extend my deepest appreciation for their unwavering commitment and care. As we look ahead, Arrow is poised to advance our strategic priorities and continue to deliver value for our communities and shareholders"

Second-Quarter Highlights and Key Metrics

•Net Income of $10.8 million (EPS of $0.65)

•Record Net Interest Income of $32.5 million

•Net Interest Margin improved to 3.15% (3.16% FTE1), up from 3.07% (3.08% FTE) in the prior quarter

1 FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 3 to the Selected Quarterly Information.

1

•Return on Average Assets (ROA) improved to 1.00%

•Excluding unification related expenses, ROA was 1.08%

•Loan-to-Deposit ratio of 87.2%

•Quarter-end loan exit rates2 increased to 5.51% at June 30, 2025 vs. 5.45% at March 31, 2025

•Tangible Book Value per share increased to $23.23

•Repurchased $5.1 million of shares (196,497 shares at an average cost of $26.06 per share)

•Additional $5.0 million authorized for potential future share repurchases

Income Statement

•Net Income: Net income for the second quarter of 2025 was $10.8 million, increasing from $6.3 million in the first quarter of 2025.

◦Compared to the prior quarter, net income benefited from an increase of $1.2 million in net interest income, a decrease in the provision for credit losses of $4.4 million and a slight decrease in non-interest expense of $0.4 million.

•Net Interest Income: Net interest income for the second quarter of 2025 was $32.5 million, increasing 3.8% from the first quarter of 2025.

◦Total interest and dividend income was $51.6 million for the second quarter of 2025, an increase from $50.4 million in the first quarter of 2025. Interest expense for the second quarter of 2025 was $19.0 million, consistent with the first quarter of 2025.

•Net Interest Margin: Net interest margin, on an FTE basis, for the second quarter of 2025 increased to 3.16%, compared to 3.08% for the first quarter of 2025. The increase in net interest margin compared to the first quarter of 2025 was primarily the result of continued yield expansion on earning assets combined with the moderating cost of interest-bearing liabilities.

			Three Months Ended
			(Dollars in Thousands)
			June 30, 2025						March 31, 2025						June 30, 2024
Interest and Dividend Income			$	51,573					$	50,366					$	47,972
Interest Expense			19,040						19,009						20,820
Net Interest Income			32,533						31,357						27,152
Average Earning Assets(A)			4,142,993						4,143,939						4,083,813
Average Interest-Bearing Liabilities			3,191,906						3,184,196						3,127,417
Yield on Earning Assets(A)			4.99		%				4.93		%				4.72		%
Cost of Interest-Bearing Liabilities			2.39						2.42						2.68
Net Interest Spread			2.60						2.51						2.04
Net Interest Margin			3.15						3.07						2.67
Net Interest Margin - FTE			3.16						3.08						2.69
(A) Includes Nonaccrual Loans.

•Provision for Credit Losses: For the second quarter of 2025, the provision for credit losses was $0.6 million compared to $5.0 million in the first quarter of 2025. The sizeable quarter-over-quarter decrease in the second quarter provision reflects the recognition of a specific reserve on a large commercial loan participation in the first quarter of 2025.

•Non-Interest Income: Non-interest income for the three months ended June 30, 2025, was $7.6 million, a decrease from $7.8 million in the first quarter of 2025. Revenue related to wealth

2 The “loan exit rate” is the point in time interest rate in effect at the end of the reporting period.

2

management decreased from the prior quarter as a result of weaker overall market performance. Interchange fees improved in the second quarter from the linked quarter. Other operating income was negatively affected by small valuation adjustments to other assets.

•Non-Interest Expense: Non-interest expense for the second quarter of 2025 was $25.7 million, a decrease from $26.0 million in the first quarter of 2025. The second quarter of 2025 included unification expenses of approximately $1.1 million as compared to $0.6 million in the first quarter of 2025. The unification expenses were primarily comprised of project management and information technology costs related to the July 2025 system conversion. Arrow continues to focus on overall expense management.

•Provision for Income Taxes: The provision for income taxes and effective tax rate were $3.1 million and 22.2%, respectively, for the second quarter of 2025, and $1.8 million and 22.4%, respectively, for the first quarter of 2025.

Balance Sheet

•Total Assets: Total assets were $4.4 billion at June 30, 2025, a decrease of $34.2 million, or 0.8%, as compared to March 31, 2025. For the second quarter of 2025, overall change in the balance sheet was primarily attributable to fluctuations in cash balances, maturities of investments and growth in the loan portfolio.

•Investments: Total investments were $528.4 million as of June 30, 2025, a decrease of $24.6 million, or 4.4%, compared to March 31, 2025. The decrease from March 31, 2025 was driven primarily by paydowns and maturities. There were no credit quality issues related to the investment portfolio.

•Loans3: Total loans were $3.4 billion as of June 30, 2025. Loan growth for the second quarter of 2025 was $7.9 million. Loan growth was primarily driven by an increase in residential real estate loans and to a lesser extent by commercial loan relationships. Please see the loan detail included in the Consolidated Financial Information table on page 12.

•Allowance for Credit Losses: The allowance for credit losses was $34.2 million as of June 30, 2025, which represented 1.00% of loans outstanding, as compared to $37.8 million, or 1.11%, at March 31, 2025. The decrease in the allowance for credit losses was primarily driven by the recognition of a specific reserve of $3.75 million in the first quarter of 2025 and subsequent charge-off of the reserved loan balances during the second quarter. The remaining loan balance has been reclassified to Other Assets after the participating banks assumed control of the collateral properties and appointed a property manager to manage the day-to-day activities while exploring further options. The properties itself are being held in an unconsolidated LLC in which Arrow has an ownership interest equivalent to its rights under the former loan participation. As previously disclosed, the properties are generating positive cash flow and a majority is tenant occupied. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.49% for the three-month period ended June 30, 2025, as compared to 0.10% for the three-month period ended March 31, 2025. The increase was the result of the charge-off of the previously reserved commercial loan participation. Nonperforming assets were $7.0 million as of June 30, 2025, representing 0.16% of period-end assets, compared to 0.44% at March 31, 2025.

•Deposits: At June 30, 2025, deposit balances were $3.9 billion, a decrease of $38.8 million from March 31, 2025. The change from March 31, 2025 was primarily attributable to the seasonality of municipal deposits. Please refer to page 7 for further details related to deposits.

3 Excludes both $3.2 million fair value hedge adjustment at June 30, 2025 and $3.3 million fair value hedge adjustment at March 31, 2025.

3

•Capital: Total stockholders’ equity was $408.5 million at June 30, 2025, an increase of $4.1 million, or 1.0%, from March 31, 2025. The increase from March 31, 2025 was primarily attributable to net income of $10.8 million and other comprehensive income of $2.6 million offset by dividends of $4.7 million and share repurchases of $5.1 million and other stock-based activity. Arrow's regulatory capital ratios remain strong. As of June 30, 2025, Arrow's Common Equity Tier 1 Capital Ratio was 12.73% and Total Risk-Based Capital Ratio was 14.51%. Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report. The capital ratios of Arrow and its subsidiary bank continued to exceed the “well capitalized” regulatory standards.

Additional Commentary

•BauerFinancial Ratings: Arrow Bank National Association ("Arrow Bank") received a 5-Star Superior rating from BauerFinancial, Inc., the nation’s premier bank rating firm. Arrow Bank has earned this designation for 73 consecutive quarters, securing its prominent position as an “Exceptional Performance Bank.”

——————

About Arrow: Arrow Financial Corporation is a holding company headquartered in Glens Falls, New York, serving the financial needs of northeastern New York. The Company is the parent of Arrow Bank, a full-service commercial bank, and Upstate Agency, LLC, a comprehensive insurance agency. Other subsidiaries include North Country Investment Advisers, Inc.

Non-GAAP Financial Measures Reconciliation: In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules. Certain non-GAAP financial measures include: tangible book value, tangible equity, return on tangible equity, tax-equivalent adjustment and related net interest income, tax-equivalent net interest margin and the efficiency ratio. Management believes that the non-GAAP financial measures disclosed by Arrow from time to time are useful in evaluating Arrow's performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Non-GAAP financial measures may differ from similar measures presented by other companies. See the reconciliation of GAAP to non-GAAP measures in the section "Selected Quarterly Information."

Safe Harbor Statement: The information contained in this news release may contain statements that are not historical in nature but rather are based on management’s beliefs, assumptions, expectations, estimates and projections about the future. These statements may be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, involving a degree of uncertainty and attendant risk. In the case of all forward-looking statements, actual outcomes and results may differ materially from what the statements predict or forecast, explicitly or by implication. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This News Release should be read in conjunction with Arrow’s Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the SEC.

4

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts - Unaudited)

						Three Months Ended June 30,												Six Months Ended June 30,
						2025												2024						2025						2024
INTEREST AND DIVIDEND INCOME
Interest and Fees on Loans						$	45,600											$	42,141					$	90,150					$	82,517
Interest on Deposits at Banks						1,622												2,185						3,243						4,632
Interest and Dividends on Investment Securities:
Fully Taxable						3,790												3,009						7,398						6,195
Exempt from Federal Taxes						561												637						1,148						1,305
Total Interest and Dividend Income						51,573												47,972						101,939						94,649
INTEREST EXPENSE
Interest-Bearing Checking Accounts						1,941												1,903						3,744						3,544
Savings Deposits						9,367												10,571						18,850						20,801
Time Deposits over $250,000						1,726												1,869						3,537						3,842
Other Time Deposits						5,793												5,074						11,322						10,157
Borrowings						—												1,186						167						2,262
Junior Subordinated Obligations Issued to   Unconsolidated Subsidiary Trusts						171												170						340						341
Interest on Financing Leases						42												47						89						95
Total Interest Expense						19,040												20,820						38,049						41,042
NET INTEREST INCOME						32,533												27,152						63,890						53,607
Provision for Credit Losses						594												775						5,613						1,392
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES						31,939												26,377						58,277						52,215
NON-INTEREST INCOME
Income From Fiduciary Activities						2,398												2,451						4,933						4,908
Fees for Other Services to Customers						2,787												2,706						5,387						5,249
Insurance Commissions						1,804												1,662						3,630						3,344
Net (Loss) Gain on Securities						(40)												54						277						71
Net Gain on Sales of Loans						213												5						314						9
Other Operating Income						447												978						907						2,133
Total Non-Interest Income						7,609												7,856						15,448						15,714
NON-INTEREST EXPENSE
Salaries and Employee Benefits						14,086												13,036						27,641						25,929
Occupancy Expenses, Net						1,952												1,774						3,974						3,545
Technology and Equipment Expense						5,589												4,734						10,676						9,554
FDIC Assessments						649												698						1,319						1,413
Other Operating Expense						3,376												3,076						8,087						6,889
Total Non-Interest Expense						25,652												23,318						51,697						47,330
INCOME BEFORE PROVISION FOR INCOME TAXES						13,896												10,915						22,028						20,599
Provision for Income Taxes						3,091												2,311						4,913						4,335
NET INCOME						$	10,805											$	8,604					$	17,115					$	16,264
Average Shares Outstanding:
Basic						16,545												16,685						16,611						16,764
Diluted						16,551												16,709						16,618						16,789
Per Common Share:
Basic Earnings						$	0.65											$	0.52					$	1.03					$	0.97
Diluted Earnings						0.65												0.52						1.03						0.97

5

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts - Unaudited)

			June 30, 2025						December 31, 2024
ASSETS
Cash and Due From Banks			$	40,976					$	27,422
Interest-Bearing Deposits at Banks			227,472						127,124
Investment Securities:
Available-for-Sale at Fair Value			447,678						463,111
Held-to-Maturity (Fair Value of $70,027 at June 30, 2025 and $96,586 at December 31, 2024)			70,828						98,261
Equity Securities			5,332						5,055
Other Investments			4,557						4,353
Loans			3,424,754						3,394,541
Allowance for Credit Losses			(34,191)						(33,598)
Net Loans			3,390,563						3,360,943
Premises and Equipment, Net			60,701						59,717
Goodwill			23,789						23,789
Other Intangible Assets, Net			1,870						2,058
Other Assets			140,953						134,515
Total Assets			$	4,414,719					$	4,306,348
LIABILITIES
Noninterest-Bearing Deposits			736,535						702,978
Interest-Bearing Checking Accounts			884,130						810,834
Savings Deposits			1,484,666						1,520,024
Time Deposits over $250,000			179,254						191,962
Other Time Deposits			644,745						602,132
Total Deposits			3,929,330						3,827,930
Borrowings			8,600						8,600
Junior Subordinated Obligations Issued to Unconsolidated   Subsidiary Trusts			20,000						20,000
Finance Leases			4,969						5,005
Other Liabilities			43,314						43,912
Total Liabilities			4,006,213						3,905,447
STOCKHOLDERS’ EQUITY
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2025 and December 31, 2024			—						—
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued at June 30, 2025 and December 31, 2024)			22,067						22,067
Additional Paid-in Capital			413,880						413,476
Retained Earnings			84,970						77,215
Accumulated Other Comprehensive Loss			(10,889)						(18,453)
Treasury Stock, at Cost (5,582,833 Shares at June 30, 2025 and 5,323,638 Shares at December 31, 2024)			(101,522)						(93,404)
Total Stockholders’ Equity			408,506						400,901
Total Liabilities and Stockholders’ Equity			$	4,414,719					$	4,306,348

6

Arrow Financial Corporation

Selected Quarterly Information

(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Quarter Ended			6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
Net Income			$	10,805					$	6,310					$	4,470					$	8,975					$	8,604
Share and Per Share Data:
Period End Shares Outstanding			16,484						16,670						16,743						16,734						16,723
Basic Average Shares Outstanding			16,545						16,665						16,718						16,710						16,685
Diluted Average Shares Outstanding			16,551						16,673						16,739						16,742						16,709
Basic Earnings Per Share			$	0.65					$	0.38					$	0.26					$	0.54					$	0.52
Diluted Earnings Per Share			0.65						0.38						0.27						0.53						0.52
Cash Dividend Per Share			0.28						0.28						0.28						0.27						0.27
Selected Quarterly Average Balances:
Interest-Bearing Deposits at Banks			$	145,473					$	146,023					$	233,469					$	154,937					$	159,336
Investment Securities			582,380						591,841						579,107						590,352						644,192
Loans			3,415,140						3,406,075						3,354,463						3,329,873						3,280,285
Deposits			3,849,093						3,825,124						3,847,691						3,672,128						3,678,957
Other Borrowed Funds			33,579						48,375						49,090						134,249						131,537
Stockholders' Equity			406,529						404,394						393,696						387,904						378,256
Total Assets			4,332,339						4,324,917						4,339,833						4,245,597						4,237,359
Return on Average Assets, annualized			1.00		%				0.59		%				0.41		%				0.84		%				0.82		%
Return on Average Equity, annualized			10.66		%				6.33		%				4.52		%				9.20		%				9.15		%
Return on Average Tangible Equity, annualized 1			11.38		%				6.76		%				4.84		%				9.79		%				9.74		%
Average Earning Assets			$	4,142,993					$	4,143,939					$	4,167,039					$	4,075,162					$	4,083,813
Average Paying Liabilities			3,191,906						3,184,196						3,185,215						3,085,066						3,127,417
Interest Income			51,573						50,366						50,901						49,443						47,972
Tax-Equivalent Adjustment 2			148						155						157						149						163
Interest Income, Tax-Equivalent 2			51,721						50,521						51,058						49,592						48,135
Interest Expense			19,040						19,009						21,214						21,005						20,820
Net Interest Income			32,533						31,357						29,687						28,438						27,152
Net Interest Income, Tax-Equivalent 2			32,681						31,512						29,844						28,587						27,315
Net Interest Margin, annualized			3.15		%				3.07		%				2.83		%				2.78		%				2.67		%
Net Interest Margin, Tax-Equivalent, annualized 2			3.16		%				3.08		%				2.85		%				2.79		%				2.69		%
Efficiency Ratio Calculation: 3
Non-Interest Expense			$	25,652					$	26,045					$	25,838					$	24,100					$	23,318
Less: Intangible Asset Amortization			80						81						89						78						40
Net Non-Interest Expense			$	25,572					$	25,964					$	25,749					$	24,022					$	23,278
Net Interest Income, Tax-Equivalent			$	32,681					$	31,512					$	29,844					$	28,587					$	27,315
Non-Interest Income			7,609						7,839						4,227						8,133						7,856
Less: Net Gain(loss) on Securities			(40)						317						(3,072)						94						54
Net Gross Income			$	40,330					$	39,034					$	37,143					$	36,626					$	35,117
Efficiency Ratio			63.41		%				66.52		%				69.32		%				65.59		%				66.29		%
Period-End Capital Information:
Total Stockholders' Equity (i.e. Book Value)			$	408,506					$	404,409					$	400,901					$	393,311					$	383,018
Book Value per Share			24.78						24.26						23.94						23.50						22.90
Goodwill and Other Intangible Assets, net			25,659						25,743						25,847						25,979						22,800
Tangible Book Value per Share 1			23.23						22.72						22.40						21.95						21.54
Capital Ratios:4
Tier 1 Leverage Ratio			9.64		%				9.61		%				9.60		%				9.78		%				9.74		%
Common Equity Tier 1 Capital Ratio			12.73		%				12.59		%				12.71		%				12.77		%				12.88		%
Tier 1 Risk-Based Capital Ratio			13.37		%				13.23		%				13.35		%				13.41		%				13.53		%
Total Risk-Based Capital Ratio			14.51		%				14.48		%				14.47		%				14.46		%				14.57		%

7

Arrow Financial Corporation

Selected Quarterly Information - Continued

(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Footnotes:
1.			Non-GAAP Financial Measure Reconciliation: Tangible Book Value, Tangible Equity, 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 its financial performance.
						6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
			Total Stockholders' Equity (GAAP)			$	408,506					$	404,409					$	400,901					$	393,311					$	383,018
			Less: Goodwill and Other Intangible assets, net			25,659						25,743						25,847						25,979						22,800
			Tangible Equity (Non-GAAP)			$	382,847					$	378,666					$	375,054					$	367,332					$	360,218
			Period End Shares Outstanding			16,484						16,670						16,743						16,734						16,723
			Tangible Book Value per Share (Non-GAAP)			$	23.23					$	22.72					$	22.40					$	21.95					$	21.54
			Net Income			10,805						6,310						4,470						8,975						8,604
			Return on Tangible Equity (Net Income/Tangible Equity - Annualized)			11.38		%				6.76		%				4.84		%				9.79		%				9.74		%
2.			Non-GAAP Financial Measure Reconciliation: Net Interest Margin is the ratio of 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 its financial performance.
						6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
			Interest Income (GAAP)			$	51,573					$	50,366					$	50,901					$	49,443					$	47,972
			Add: Tax-Equivalent adjustment      (Non-GAAP)			148						155						157						149						163
			Interest Income - Tax Equivalent      (Non-GAAP)			$	51,721					$	50,521					$	51,058					$	49,592					$	48,135
			Net Interest Income (GAAP)			$	32,533					$	31,357					$	29,687					$	28,438					$	27,152
			Add: Tax-Equivalent adjustment      (Non-GAAP)			148						155						157						149						163
			Net Interest Income - Tax Equivalent      (Non-GAAP)			$	32,681					$	31,512					$	29,844					$	28,587					$	27,315
			Average Earning Assets			$	4,142,993					$	4,143,939					$	4,167,039					$	4,075,162					$	4,083,813
			Net Interest Margin (Non-GAAP)*			3.16		%				3.08		%				2.85		%				2.79		%				2.69		%
3.			Non-GAAP Financial Measure Reconciliation: Financial Institutions often use the "efficiency ratio", a non-GAAP ratio, as a measure of expense control. Arrow believes the efficiency ratio provides investors with information that is useful in understanding its financial performance. Arrow defines efficiency ratio as the ratio of non-interest expense to net gross income (which equals tax-equivalent net interest income plus non-interest income, as adjusted).
4.			For the current quarter, all of the regulatory capital ratios as well as the Total Risk-Weighted Assets are calculated in accordance with bank regulatory capital rules. The June 30, 2025 CET1 ratio listed in the tables (i.e., 12.73%) exceeds the sum of the required minimum CET1 ratio plus the fully phased-in Capital Conservation Buffer (i.e., 7.00%). Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report.
						6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
			Total Risk Weighted Assets			$	3,121,451					$	3,143,547					$	3,126,364					$	3,110,178					$	3,072,922
			Common Equity Tier 1 Capital			397,432						395,900						397,285						397,122						395,691
			Common Equity Tier 1 Ratio			12.73		%				12.59		%				12.71		%				12.77		%				12.88		%
* Quarterly ratios have been annualized.

8

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)

Quarter Ended:			June 30, 2025																		June 30, 2024
									Interest						Rate												Interest						Rate
			Average						Income/						Earned/						Average						Income/						Earned/
			Balance						Expense						Paid						Balance						Expense						Paid
Interest-Bearing Deposits at Banks			$	145,473					$	1,622					4.47		%				$	159,336					$	2,185					5.52		%
Investment Securities:
Fully Taxable			496,614						3,790						3.06						530,869						3,009						2.28
Exempt from Federal Taxes			85,766						561						2.62						113,323						637						2.26
Loans (1)			3,415,140						45,600						5.36						3,280,285						42,141						5.17
Total Earning Assets (1)			4,142,993						51,573						4.99						4,083,813						47,972						4.72
Allowance for Credit Losses			(35,238)																		(31,459)
Cash and Due From Banks			29,267																		28,611
Other Assets			195,317																		156,394
Total Assets			$	4,332,339																	$	4,237,359
Deposits:
Interest-Bearing Checking Accounts			$	845,041					1,941						0.92						$	832,087					1,903						0.92
Savings Deposits			1,494,930						9,367						2.51						1,487,062						10,571						2.86
Time Deposits of $250,000 or More			179,980						1,726						3.85						172,655						1,869						4.35
Other Time Deposits			638,376						5,793						3.64						504,076						5,074						4.05
Total Interest-Bearing Deposits			3,158,327						18,827						2.39						2,995,880						19,417						2.61
Borrowings			8,601						—						—						106,502						1,186						4.48
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts			20,000						171						3.43						20,000						170						3.42
Finance Leases			4,978						42						3.38						5,035						47						3.75
Total Interest-Bearing Liabilities			3,191,906						19,040						2.39						3,127,417						20,820						2.68
Noninterest-Bearing Deposits			690,766																		683,077
Other Liabilities			43,138																		48,609
Total Liabilities			3,925,810																		3,859,103
Stockholders’ Equity			406,529																		378,256
Total Liabilities and Stockholders’ Equity			$	4,332,339																	$	4,237,359
Net Interest Income									$	32,533																	$	27,152
Net Interest Spread															2.60		%																2.04		%
Net Interest Margin															3.15		%																2.67		%

(1) Includes Nonaccrual Loans.

9

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)

Quarter Ended:			June 30, 2025																		March 31, 2025
									Interest						Rate												Interest						Rate
			Average						Income/						Earned/						Average						Income/						Earned/
			Balance						Expense						Paid						Balance						Expense						Paid
Interest-Bearing Deposits at Banks			$	145,473					$	1,622					4.47		%				$	146,023					$	1,621					4.50		%
Investment Securities:
Fully Taxable			496,614						3,790						3.06						499,903						3,608						2.93
Exempt from Federal Taxes			85,766						561						2.62						91,938						587						2.59
Loans (1)			3,415,140						45,600						5.36						3,406,075						44,550						5.30
Total Earning Assets (1)			4,142,993						51,573						4.99						4,143,939						50,366						4.93
Allowance for Credit Losses			(35,238)																		(33,691)
Cash and Due From Banks			29,267																		31,515
Other Assets			195,317																		183,154
Total Assets			$	4,332,339																	$	4,324,917
Deposits:
Interest-Bearing Checking Accounts			$	845,041					1,941						0.92						$	840,571					1,803						0.87
Savings Deposits			1,494,930						9,367						2.51						1,515,961						9,483						2.54
Time Deposits of $250,000 or More			179,980						1,726						3.85						186,159						1,811						3.95
Other Time Deposits			638,376						5,793						3.64						593,130						5,529						3.78
Total Interest-Bearing Deposits			3,158,327						18,827						2.39						3,135,821						18,626						2.41
Borrowings			8,601						—						—						23,378						167						2.90
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts			20,000						171						3.43						20,000						169						3.43
Finance Leases			4,978						42						3.38						4,997						47						3.81
Total Interest-Bearing Liabilities			3,191,906						19,040						2.39						3,184,196						19,009						2.42
Noninterest-Bearing Deposits			690,766																		689,303
Other Liabilities			43,138																		47,024
Total Liabilities			3,925,810																		3,920,523
Stockholders’ Equity			406,529																		404,394
Total Liabilities and Stockholders’ Equity			$	4,332,339																	$	4,324,917
Net Interest Income									$	32,533																	$	31,357
Net Interest Spread															2.60		%																2.51		%
Net Interest Margin															3.15		%																3.07		%

(1) Includes Nonaccrual Loans.

10

Arrow Financial Corporation

Average Consolidated Balance Sheets and Net Interest Income Analysis

(Dollars in Thousands - Unaudited)

Year to Date Period Ended:			June 30, 2025																		June 30, 2024
									Interest						Rate												Interest						Rate
			Average						Income/						Earned/						Average						Income/						Earned/
			Balance						Expense						Paid						Balance						Expense						Paid
Interest-Bearing Deposits at Banks			$	145,746					$	3,243					4.49		%				$	168,894					$	4,632					5.52		%
Investment Securities:
Fully Taxable			498,250						7,398						2.99						540,704						6,195						2.30
Exempt from Federal Taxes			88,835						1,148						2.61						116,945						1,305						2.24
Loans (1)			3,410,632						90,150						5.33						3,258,063						82,517						5.09
Total Earning Assets (1)			4,143,463						101,939						4.96						4,084,606						94,649						4.66
Allowance for Credit Losses			(34,469)																		(31,437)
Cash and Due From Banks			30,385																		29,207
Other Assets			189,269																		159,046
Total Assets			$	4,328,648																	$	4,241,422
Deposits:
Interest-Bearing Checking Accounts			$	842,818					3,744						0.90						$	831,502					3,544						0.86
Savings Deposits			1,505,387						18,850						2.53						1,484,031						20,801						2.82
Time Deposits of $250,000 or More			183,053						3,537						3.90						174,991						3,842						4.42
Other Time Deposits			615,878						11,322						3.71						500,444						10,157						4.08
Total Interest-Bearing Deposits			3,147,136						37,453						2.40						2,990,968						38,344						2.58
Borrowings			15,949						167						2.11						101,743						2,262						4.47
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts			20,000						340						3.43						20,000						341						3.43
Finance Leases			4,987						89						3.60						5,042						95						3.79
Total Interest-Bearing Liabilities			3,188,072						38,049						2.41						3,117,753						41,042						2.65
Noninterest-Bearing Deposits			690,039																		695,171
Other Liabilities			45,069																		49,648
Total Liabilities			3,923,180																		3,862,572
Stockholders’ Equity			405,468																		378,850
Total Liabilities and Stockholders’ Equity			$	4,328,648																	$	4,241,422
Net Interest Income									$	63,890																	$	53,607
Net Interest Spread															2.55		%																2.01		%
Net Interest Margin															3.11		%																2.64		%
(1) Includes Nonaccrual Loans.

11

Arrow Financial Corporation

Consolidated Financial Information

(Dollars in Thousands - Unaudited)

Quarter Ended:			6/30/2025						12/31/2024
Loan Portfolio
Commercial Loans			$	162,203					$	158,991
Commercial Real Estate Loans			808,166						796,365
Subtotal Commercial Loan Portfolio			970,369						955,356
Consumer Loans			1,109,272						1,118,981
Residential Real Estate Loans			1,345,113						1,320,204
Total Loans			$	3,424,754					$	3,394,541
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Quarter			$	37,771					$	31,262
Loans Charged-off			(5,062)						(1,333)
Less Recoveries of Loans Previously Charged-off			888						815
Net Loans Charged-off			(4,174)						(518)
Provision for Credit Losses			594						2,854
Allowance for Credit Losses, End of Quarter			$	34,191					$	33,598
Nonperforming Assets
Nonaccrual Loans			$	5,550					$	20,621
Loans Past Due 90 or More Days and Accruing			855						398
Loans Restructured and in Compliance with Modified Terms			12						20
Total Nonperforming Loans			6,417						21,039
Repossessed Assets			590						382
Other Real Estate Owned			—						76
Total Nonperforming Assets			$	7,007					$	21,497
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans,    Quarter-to-date Annualized			0.49		%				0.06		%
Provision for Credit Losses to Average Loans,   Quarter-to-date Annualized			0.07		%				0.34		%
Allowance for Credit Losses to Period-End Loans			1.00		%				0.99		%
Allowance for Credit Losses to Period-End Nonperforming Loans			532.82		%				159.69		%
Nonperforming Loans to Period-End Loans			0.19		%				0.62		%
Nonperforming Assets to Period-End Assets			0.16		%				0.50		%
Year-to-Date Period Ended:			6/30/2025						12/31/2024
Allowance for Credit Losses
Allowance for Credit Losses, Beginning of Year			$	33,598					$	31,265
Loans Charged-off			(6,613)						(5,895)
Less Recoveries of Loans Previously Charged-off			1,593						3,048
Net Loans Charged-off			(5,020)						(2,847)
Provision for Credit Losses			5,613						5,180
Allowance for Credit Losses, End of Period			$	34,191					$	33,598
Key Asset Quality Ratios
Net Loans Charged-off to Average Loans, Annualized			0.30		%				0.09		%
Provision for Loan Losses to Average Loans, Annualized			0.33		%				0.16		%

12