EX-99.1 2 ex99-earningsq32025.htm EX-99.1

| 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 3rd Quarter Net Income of $12.8 Million, or $0.77 per Share, and Declares 4th Quarter Dividend of $0.29 per Share
GLENS FALLS, N.Y. (October 30, 2025) – Arrow Financial Corporation (NasdaqGS® – AROW) ("Arrow" or "the Company") announced financial results for the three-month period ended September 30, 2025. Reported net income for the third quarter of 2025 was $12.8 million and fully diluted earnings per share ("EPS") was $0.77, versus net income of $10.8 million and EPS of $0.65 for the second quarter of 2025.
The Board of Directors of Arrow declared a quarterly cash dividend of $0.29 per share; payable November 24, 2025 to shareholders of record as of November 12, 2025.
This quarter's results include approximately $600 thousand ($0.03 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. Arrow does not expect to incur additional costs related to the unification effort.
This Earnings Release and related commentary should be read in conjunction with the Company's October 30, 2025 Form 8-K and related Third 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:
"I am proud to report that on the heels of our unification effort, the Arrow team delivered a great financial quarter. EPS increased by almost 20% from the prior quarter and ROA improved by 16 bps to 1.16%, despite recognizing the last remaining unification expenses. Our third quarter delivered record net interest income, solid net interest margin expansion and more than 10% annualized growth in tangible book value. With the Federal Reserve enacting a first round of interest rate cuts late in the third quarter and again in late October, Arrow is well-positioned with our near-term liability sensitive balance sheet to deliver another great quarter to end the year. We are delighted that we can use our improved financial performance to continue to support our communities while delivering strong results to our shareholders."
Third-Quarter Highlights and Key Metrics
•Net Income of $12.8 million (EPS of $0.77)
•Record Net Interest Income of $34.1 million
•Net Interest Margin improved to 3.22% (3.24% FTE 1), from 3.15% (3.16% FTE 1) in the prior quarter
•Return on Average Assets (ROA) improved to 1.16%, an increase from 1.00% for the prior quarter
•Loan-to-Deposit ratio of 84.0%
1 FTE Net interest margin is a non-GAAP measure. See reconciliation on Note 2 to the Selected Quarterly Information.
1

•Quarter-end loan exit rates 2 increased to 5.56% at September 30, 2025 vs. 5.51% at June 30, 2025
•Cost of retail deposits 3 decreased by 9 bps to 1.68% from the prior quarter
•Approximately $2 billion of deposits subject to repricing with additional federal reserve rate cuts
•Tangible Book Value per share increased to $23.85, an increase of 2.7% from the prior quarter
•Repurchased $1.4 million of shares (52,947 shares at an average cost of $26.87 per share)
•$5.1 million remaining under current repurchase authorization
•Recently received preliminary court approval of the negotiated settlement in the Shareholder Derivative Complaint described in previous SEC filings. The preliminary approval has no material financial impact to the results of operations or financial position.
Income Statement
•Net Income: Net income for the third quarter of 2025 was $12.8 million, increasing from $10.8 million in the second quarter of 2025.
◦Compared to the prior quarter, net income benefited from an increase of $1.6 million in net interest income, an increase in non-interest income of $1.1 million and a slight decrease in non-interest expense of $0.2 million.
•Net Interest Income: Net interest income for the third quarter of 2025 was $34.1 million, increasing 4.9% from the second quarter of 2025.
◦Total interest and dividend income was $53.6 million for the third quarter of 2025, an increase from $51.6 million in the second quarter of 2025. Interest expense for the third quarter of 2025 was $19.5 million, an increase from $19.0 million in the second quarter of 2025.
•Net Interest Margin: Net interest margin, on an FTE basis, for the third quarter of 2025 increased to 3.24%, compared to 3.16% for the second quarter of 2025. The increase in net interest margin compared to the second quarter of 2025 was primarily the result of continued yield expansion on earning assets combined with the stabilizing cost of interest-bearing liabilities.

| Three Months Ended |  |  |  |
| (Dollars in Thousands) |  |  |  |
| September 30, 2025 |  | June 30, 2025 |  | September 30, 2024 |  |  |  |
Interest and Dividend Income | $ | 53,598 |  |  | $ | 51,573 |  |  | $ | 49,443 |  |  |  |  |
Interest Expense | 19,467 |  |  | 19,040 |  |  | 21,005 |  |  |  |  |
Net Interest Income | 34,131 |  |  | 32,533 |  |  | 28,438 |  |  |  |  |
Average Earning Assets(A) | 4,199,115 |  |  | 4,142,993 |  |  | 4,075,162 |  |  |  |  |
Average Interest-Bearing Liabilities | 3,193,789 |  |  | 3,191,906 |  |  | 3,085,066 |  |  |  |  |
Average Yield on Earning Assets(A) | 5.06 | % |  | 4.99 | % |  | 4.83 | % |  |  |  |
Average Cost of Interest-Bearing Liabilities | 2.42 |  |  | 2.39 |  |  | 2.71 |  |  |  |  |
Net Interest Spread | 2.64 |  |  | 2.60 |  |  | 2.12 |  |  |  |  |
Net Interest Margin | 3.22 |  |  | 3.15 |  |  | 2.78 |  |  |  |  |
Net Interest Margin - FTE | 3.24 |  |  | 3.16 |  |  | 2.79 |  |  |  |  |
(A) Includes Nonaccrual Loans. |  |  |  |  |  |  |  |  |

•Provision for Credit Losses: For the third quarter of 2025, the provision for credit losses was $815 thousand compared to $594 thousand in the second quarter of 2025, primarily driven by third quarter 2025 charge-offs.
2 The “loan exit rate” is the point in time interest rate in effect at the end of the reporting period.
3 Retail deposits exclude wholesale funding sources
2

•Non-Interest Income: Non-interest income for the three months ended September 30, 2025, was $8.7 million, an increase from $7.6 million in the second quarter of 2025. Revenue related to wealth management increased from the prior quarter as a result of overall market performance. Interchange fees improved in the third quarter from the linked quarter. The third quarter of 2025 included a positive valuation adjustment related to an equity position.
•Non-Interest Expense: Non-interest expense for the third quarter of 2025 was $25.4 million, a decrease from $25.7 million in the second quarter of 2025. The third quarter of 2025 included unification expenses of approximately $600 thousand as compared to $1.1 million in the second 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 control.
•Provision for Income Taxes: The provision for income taxes and effective tax rate were $3.8 million and 22.7%, respectively for the third quarter of 2025, and $3.1 million and 22.4%, respectively for the second quarter of 2025.
Balance Sheet
•Total Assets: Total assets were $4.6 billion at September 30, 2025, an increase of $172.4 million, or 3.9%, as compared to June 30, 2025. For the third quarter of 2025, the overall change in the balance sheet was primarily attributable to the seasonal surge in municipal deposits as well as fluctuations in cash balances, maturities of investments and growth in the loan portfolio.
•Investments: Total investments were $558.4 million as of September 30, 2025, an increase of $30.0 million, or 5.7%, compared to June 30, 2025. The increase from June 30, 2025 was driven primarily by $48 million of additional investments offset by paydowns and maturities. There were no credit quality issues related to the investment portfolio.
•Loans 4: Total loans were $3.4 billion as of September 30, 2025. Loan growth for the third quarter of 2025 was $17.3 million. Loan growth was primarily driven by an increase in residential real estate loans and commercial loans. 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 September 30, 2025, which represented 0.99% of loans outstanding, as compared to $34.2 million, or 1.00% of loans outstanding, at June 30, 2025. Net charge-offs, expressed as an annualized percentage of average loans outstanding, were 0.10% for the three-month period ended September 30, 2025, as compared to 0.49% for the three-month period ended June 30, 2025. The decrease was the result of a charge-off of a previously reserved commercial loan participation in the second quarter of 2025. Nonperforming assets were $6.7 million as of September 30, 2025, representing 0.15% of period-end assets, compared to $6.8 million, or 0.15%, at June 30, 2025.
•Deposits: At September 30, 2025, deposit balances were $4.1 billion, an increase of $170.7 million from June 30, 2025. The change from June 30, 2025 was primarily attributable to the seasonality of municipal deposits. Please refer to page 6 for further details related to deposits.
•Capital: Total stockholders’ equity was $417.7 million at September 30, 2025, an increase of $9.2 million, or 2.2%, from June 30, 2025. The increase from June 30, 2025 was primarily attributable to net income of $12.8 million and other comprehensive income of $2.2 million offset by dividends
4 Excludes $3.0 million and $3.2 million fair value hedge adjustments at September 30, 2025 and June 30, 2025, respectively.
3

of $4.8 million and share repurchases of $1.4 million and other stock-based activity. Arrow's regulatory capital ratios remain strong. As of September 30, 2025, Arrow's Common Equity Tier 1 Capital Ratio was 13.07% and Total Risk-Based Capital Ratio was 14.86%. Regulatory capital ratios are preliminary, 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 74 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.
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 earnings 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 can sometimes be identified by Arrow's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." 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 because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, difficulties in managing the Arrow’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends. Arrow undertakes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated events. This earnings 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 September 30, |  | Nine Months Ended September 30,
|  | 2025 |  |  |  | 2024 |  | 2025 |  | 2024
INTEREST AND DIVIDEND INCOME |  |  |  |  |  |  |  |  |  |
Interest and Fees on Loans |  | $ | 46,832 |  |  |  |  | $ | 44,122 |  |  | $ | 136,982 |  |  | $ | 126,639 |
Interest on Deposits at Banks |  | 2,245 |  |  |  |  | 2,103 |  |  | 5,488 |  |  | 6,735 |
Interest and Dividends on Investment Securities: |  |  |  |  |  |  |  |  |  |
Fully Taxable |  | 4,066 |  |  |  |  | 2,656 |  |  | 11,464 |  |  | 8,851 |
Exempt from Federal Taxes |  | 455 |  |  |  |  | 562 |  |  | 1,603 |  |  | 1,867 |
Total Interest and Dividend Income |  | 53,598 |  |  |  |  | 49,443 |  |  | 155,537 |  |  | 144,092 |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |
Interest-Bearing Checking Accounts |  | 2,160 |  |  |  |  | 1,966 |  |  | 5,904 |  |  | 5,510 |
Savings Deposits |  | 9,534 |  |  |  |  | 10,905 |  |  | 28,384 |  |  | 31,706 |
Time Deposits over $250,000 |  | 1,695 |  |  |  |  | 1,803 |  |  | 5,232 |  |  | 5,645 |
Other Time Deposits |  | 5,859 |  |  |  |  | 4,934 |  |  | 17,181 |  |  | 15,091 |
Borrowings |  | — |  |  |  |  | 1,177 |  |  | 167 |  |  | 3,439 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts |  | 173 |  |  |  |  | 173 |  |  | 513 |  |  | 514 |
Interest on Financing Leases |  | 46 |  |  |  |  | 47 |  |  | 135 |  |  | 142 |
Total Interest Expense |  | 19,467 |  |  |  |  | 21,005 |  |  | 57,516 |  |  | 62,047 |
NET INTEREST INCOME |  | 34,131 |  |  |  |  | 28,438 |  |  | 98,021 |  |  | 82,045 |
Provision for Credit Losses |  | 815 |  |  |  |  | 934 |  |  | 6,428 |  |  | 2,326 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |  | 33,316 |  |  |  |  | 27,504 |  |  | 91,593 |  |  | 79,719 |
NON-INTEREST INCOME |  |  |  |  |  |  |  |  |  |
Income From Fiduciary Activities |  | 2,600 |  |  |  |  | 2,429 |  |  | 7,533 |  |  | 7,337 |
Fees for Other Services to Customers |  | 2,857 |  |  |  |  | 2,881 |  |  | 8,244 |  |  | 8,130 |
Insurance Commissions |  | 1,986 |  |  |  |  | 1,955 |  |  | 5,616 |  |  | 5,299 |
Net Gain on Securities |  | 392 |  |  |  |  | 94 |  |  | 669 |  |  | 165 |
Net Gain on Sales of Loans |  | 259 |  |  |  |  | 126 |  |  | 573 |  |  | 135 |
Other Operating Income |  | 622 |  |  |  |  | 648 |  |  | 1,529 |  |  | 2,781 |
Total Non-Interest Income |  | 8,716 |  |  |  |  | 8,133 |  |  | 24,164 |  |  | 23,847 |
NON-INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |
Salaries and Employee Benefits |  | 14,339 |  |  |  |  | 13,446 |  |  | 41,980 |  |  | 39,375 |
Occupancy Expenses, Net |  | 1,907 |  |  |  |  | 1,754 |  |  | 5,881 |  |  | 5,299 |
Technology and Equipment Expense |  | 4,963 |  |  |  |  | 4,692 |  |  | 15,639 |  |  | 14,246 |
FDIC Assessments |  | 634 |  |  |  |  | 698 |  |  | 1,953 |  |  | 2,111 |
Other Operating Expense |  | 3,590 |  |  |  |  | 3,510 |  |  | 11,677 |  |  | 10,399 |
Total Non-Interest Expense |  | 25,433 |  |  |  |  | 24,100 |  |  | 77,130 |  |  | 71,430 |
INCOME BEFORE PROVISION FOR INCOME TAXES |  | 16,599 |  |  |  |  | 11,537 |  |  | 38,627 |  |  | 32,136 |
Provision for Income Taxes |  | 3,774 |  |  |  |  | 2,562 |  |  | 8,687 |  |  | 6,897 |
NET INCOME |  | $ | 12,825 |  |  |  |  | $ | 8,975 |  |  | $ | 29,940 |  |  | $ | 25,239 |
Average Shares Outstanding: |  |  |  |  |  |  |  |  |  |
Basic |  | 16,402 |  |  |  |  | 16,710 |  |  | 16,541 |  |  | 16,746 |
Diluted |  | 16,406 |  |  |  |  | 16,742 |  |  | 16,543 |  |  | 16,772 |
Per Common Share: |  |  |  |  |  |  |  |  |  |
Basic Earnings |  | $ | 0.77 |  |  |  |  | $ | 0.54 |  |  | $ | 1.80 |  |  | $ | 1.51 |
Diluted Earnings |  | 0.77 |  |  |  |  | 0.53 |  |  | 1.80 |  |  | 1.50 |

5

ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts - Unaudited)

| September 30, 2025 |  | December 31, 2024 |  |
ASSETS |  |  |  |  |
Cash and Due From Banks | $ | 45,925 |  |  | $ | 27,422 |  |  |
Interest-Earning Deposits at Banks | 351,512 |  |  | 127,124 |  |  |
Investment Securities: |  |  |  |  |
Available-for-Sale at Fair Value | 485,583 |  |  | 463,111 |  |  |
Held-to-Maturity (Fair Value of $62,251 at September 30, 2025 and $96,586 at December 31, 2024) | 62,744 |  |  | 98,261 |  |  |
Equity Securities | 5,724 |  |  | 5,055 |  |  |
Other Investments | 4,369 |  |  | 4,353 |  |  |
Loans | 3,442,009 |  |  | 3,394,541 |  |  |
Allowance for Credit Losses | (34,176) |  |  | (33,598) |  |  |
Net Loans | 3,407,833 |  |  | 3,360,943 |  |  |
Premises and Equipment, Net | 60,002 |  |  | 59,717 |  |  |
Goodwill | 23,789 |  |  | 23,789 |  |  |
Other Intangible Assets, Net | 1,805 |  |  | 2,058 |  |  |
Other Assets | 137,829 |  |  | 134,515 |  |  |
Total Assets | $ | 4,587,115 |  |  | $ | 4,306,348 |  |  |
LIABILITIES |  |  |  |  |
Noninterest-Bearing Deposits | 771,014 |  |  | 702,978 |  |  |
Interest-Bearing Checking Accounts | 977,871 |  |  | 810,834 |  |  |
Savings Deposits | 1,526,055 |  |  | 1,520,024 |  |  |
Time Deposits over $250,000 | 178,843 |  |  | 191,962 |  |  |
Other Time Deposits | 646,268 |  |  | 602,132 |  |  |
Total Deposits | 4,100,051 |  |  | 3,827,930 |  |  |
Borrowings | 4,265 |  |  | 8,600 |  |  |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 |  |  | 20,000 |  |  |
Finance Leases | 4,928 |  |  | 5,005 |  |  |
Other Liabilities | 40,184 |  |  | 43,912 |  |  |
Total Liabilities | 4,169,428 |  |  | 3,905,447 |  |  |
STOCKHOLDERS’ EQUITY |  |  |  |  |
Preferred Stock, $1 Par Value; 1,000,000 Shares Authorized at September 30, 2025 and December 31, 2024 | — |  |  | — |  |  |
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (22,066,559 Shares Issued at September 30, 2025 and December 31, 2024) | 22,067 |  |  | 22,067 |  |  |
Additional Paid-in Capital | 414,133 |  |  | 413,476 |  |  |
Retained Earnings | 93,027 |  |  | 77,215 |  |  |
Accumulated Other Comprehensive Loss | (8,640) |  |  | (18,453) |  |  |
Treasury Stock, at Cost (5,628,864 Shares at September 30, 2025 and 5,323,638 Shares at December 31, 2024) | (102,900) |  |  | (93,404) |  |  |
Total Stockholders’ Equity | 417,687 |  |  | 400,901 |  |  |
Total Liabilities and Stockholders’ Equity | $ | 4,587,115 |  |  | $ | 4,306,348 |  |  |

6

Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts - Unaudited)

Quarter Ended | 9/30/2025 |  | 6/30/2025 |  | 3/31/2025 |  | 12/31/2024 |  | 9/30/2024
Net Income | $ | 12,825 |  |  | $ | 10,805 |  |  | $ | 6,310 |  |  | $ | 4,470 |  |  | $ | 8,975 |
Share and Per Share Data: |  |  |  |  |  |  |  |  |
Period End Shares Outstanding | 16,438 |  |  | 16,484 |  |  | 16,670 |  |  | 16,743 |  |  | 16,734 |
Basic Average Shares Outstanding | 16,402 |  |  | 16,545 |  |  | 16,665 |  |  | 16,718 |  |  | 16,710 |
Diluted Average Shares Outstanding | 16,406 |  |  | 16,551 |  |  | 16,673 |  |  | 16,739 |  |  | 16,742 |
Basic Earnings Per Share | $ | 0.77 |  |  | $ | 0.65 |  |  | $ | 0.38 |  |  | $ | 0.26 |  |  | $ | 0.54 |
Diluted Earnings Per Share | 0.77 |  |  | 0.65 |  |  | 0.38 |  |  | 0.27 |  |  | 0.53 |
Cash Dividend Per Share | 0.29 |  |  | 0.28 |  |  | 0.28 |  |  | 0.28 |  |  | 0.27 |
Selected Quarterly Average Balances: |  |  |  |  |  |  |  |  |
Interest-Earning Deposits at Banks | $ | 200,251 |  |  | $ | 145,473 |  |  | $ | 146,023 |  |  | $ | 233,469 |  |  | $ | 154,937 |
Investment Securities | 574,080 |  |  | 582,380 |  |  | 591,841 |  |  | 579,107 |  |  | 590,352 |
Loans | 3,424,784 |  |  | 3,415,140 |  |  | 3,406,075 |  |  | 3,354,463 |  |  | 3,329,873 |
Deposits | 3,913,721 |  |  | 3,849,093 |  |  | 3,825,124 |  |  | 3,847,691 |  |  | 3,672,128 |
Other Borrowed Funds | 30,539 |  |  | 33,579 |  |  | 48,375 |  |  | 49,090 |  |  | 134,249 |
Stockholders' Equity | 413,058 |  |  | 406,529 |  |  | 404,394 |  |  | 393,696 |  |  | 387,904 |
Total Assets | 4,399,815 |  |  | 4,332,339 |  |  | 4,324,917 |  |  | 4,339,833 |  |  | 4,245,597 |
Return on Average Assets, annualized | 1.16 | % |  | 1.00 | % |  | 0.59 | % |  | 0.41 | % |  | 0.84 | %
Return on Average Equity, annualized | 12.32 | % |  | 10.66 | % |  | 6.33 | % |  | 4.52 | % |  | 9.20 | %
Return on Average Tangible Equity, annualized 1 | 13.13 | % |  | 11.38 | % |  | 6.76 | % |  | 4.84 | % |  | 9.79 | %
Average Earning Assets | $ | 4,199,115 |  |  | $ | 4,142,993 |  |  | $ | 4,143,939 |  |  | $ | 4,167,039 |  |  | $ | 4,075,162 |
Average Paying Liabilities | 3,193,789 |  |  | 3,191,906 |  |  | 3,184,196 |  |  | 3,185,215 |  |  | 3,085,066 |
Interest Income | 53,598 |  |  | 51,573 |  |  | 50,366 |  |  | 50,901 |  |  | 49,443 |
Tax-Equivalent Adjustment 2 | 121 |  |  | 148 |  |  | 155 |  |  | 157 |  |  | 149 |
Interest Income, Tax-Equivalent 2 | 53,719 |  |  | 51,721 |  |  | 50,521 |  |  | 51,058 |  |  | 49,592 |
Interest Expense | 19,467 |  |  | 19,040 |  |  | 19,009 |  |  | 21,214 |  |  | 21,005 |
Net Interest Income | 34,131 |  |  | 32,533 |  |  | 31,357 |  |  | 29,687 |  |  | 28,438 |
Net Interest Income, Tax-Equivalent 2 | 34,252 |  |  | 32,681 |  |  | 31,512 |  |  | 29,844 |  |  | 28,587 |
Net Interest Margin, annualized | 3.22 | % |  | 3.15 | % |  | 3.07 | % |  | 2.83 | % |  | 2.78 | %
Net Interest Margin, Tax-Equivalent, annualized 2 | 3.24 | % |  | 3.16 | % |  | 3.08 | % |  | 2.85 | % |  | 2.79 | %
Efficiency Ratio Calculation: 3 |  |  |  |  |  |  |  |  |
Non-Interest Expense | $ | 25,433 |  |  | $ | 25,652 |  |  | $ | 26,045 |  |  | $ | 25,838 |  |  | $ | 24,100 |
Less: Intangible Asset Amortization | 76 |  |  | 80 |  |  | 81 |  |  | 89 |  |  | 78 |
Net Non-Interest Expense | $ | 25,357 |  |  | $ | 25,572 |  |  | $ | 25,964 |  |  | $ | 25,749 |  |  | $ | 24,022 |
Net Interest Income, Tax-Equivalent | $ | 34,252 |  |  | $ | 32,681 |  |  | $ | 31,512 |  |  | $ | 29,844 |  |  | $ | 28,587 |
Non-Interest Income | 8,716 |  |  | 7,609 |  |  | 7,839 |  |  | 4,227 |  |  | 8,133 |
Less: Net Gain (Loss) on Securities | 392 |  |  | (40) |  |  | 317 |  |  | (3,072) |  |  | 94 |
Net Gross Income | $ | 42,576 |  |  | $ | 40,330 |  |  | $ | 39,034 |  |  | $ | 37,143 |  |  | $ | 36,626 |
Efficiency Ratio | 59.56 | % |  | 63.41 | % |  | 66.52 | % |  | 69.32 | % |  | 65.59 | %
Period-End Capital Information: |  |  |  |  |  |  |  |  |
Total Stockholders' Equity (i.e. Book Value) | $ | 417,687 |  |  | $ | 408,506 |  |  | $ | 404,409 |  |  | $ | 400,901 |  |  | $ | 393,311 |
Book Value per Share | 25.41 |  |  | 24.78 |  |  | 24.26 |  |  | 23.94 |  |  | 23.50 |
Goodwill and Other Intangible Assets, net | 25,594 |  |  | 25,659 |  |  | 25,743 |  |  | 25,847 |  |  | 25,979 |
Tangible Book Value per Share 1 | 23.85 |  |  | 23.23 |  |  | 22.72 |  |  | 22.40 |  |  | 21.95 |
Capital Ratios:4 |  |  |  |  |  |  |  |  |
Tier 1 Leverage Ratio | 9.66 | % |  | 9.64 | % |  | 9.61 | % |  | 9.60 | % |  | 9.78 | %
Common Equity Tier 1 Capital Ratio | 13.07 | % |  | 12.73 | % |  | 12.59 | % |  | 12.71 | % |  | 12.77 | %
Tier 1 Risk-Based Capital Ratio | 13.71 | % |  | 13.37 | % |  | 13.23 | % |  | 13.35 | % |  | 13.41 | %
Total Risk-Based Capital Ratio | 14.86 | % |  | 14.51 | % |  | 14.48 | % |  | 14.47 | % |  | 14.46 | %

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.
|  | 9/30/2025 |  | 6/30/2025 |  | 12/31/2024 |  | 12/31/2024 |  | 9/30/2024
| Total Stockholders' Equity (GAAP) | $ | 417,687 |  |  | $ | 408,506 |  |  | $ | 404,409 |  |  | $ | 400,901 |  |  | $ | 393,311 |
| Less: Goodwill and Other Intangible assets, net | 25,594 |  |  | 25,659 |  |  | 25,743 |  |  | 25,847 |  |  | 25,979 |
| Tangible Equity (Non-GAAP) | $ | 392,093 |  |  | $ | 382,847 |  |  | $ | 378,666 |  |  | $ | 375,054 |  |  | $ | 367,332 |
| Period End Shares Outstanding | 16,438 |  |  | 16,484 |  |  | 16,670 |  |  | 16,743 |  |  | 16,734 |
| Tangible Book Value per Share (Non-GAAP) | $ | 23.85 |  |  | $ | 23.23 |  |  | $ | 22.72 |  |  | $ | 22.40 |  |  | $ | 21.95 |
| Net Income | 12,825 |  |  | 10,805 |  |  | 6,310 |  |  | 4,470 |  |  | 8,975 |
| Return on Tangible Equity (Net Income/Tangible Equity - Annualized) | 13.13 | % |  | 11.38 | % |  | 6.76 | % |  | 4.84 | % |  | 9.79 | %
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.
|  | 9/30/2025 |  | 6/30/2025 |  | 12/31/2024 |  | 12/31/2024 |  | 9/30/2024
| Interest Income (GAAP) | $ | 53,598 |  |  | $ | 51,573 |  |  | $ | 50,366 |  |  | $ | 50,901 |  |  | $ | 49,443 |
| Add: Tax-Equivalent adjustment (Non-GAAP) | 121 |  |  | 148 |  |  | 155 |  |  | 157 |  |  | 149 |
| Interest Income - Tax Equivalent (Non-GAAP) | $ | 53,719 |  |  | $ | 51,721 |  |  | $ | 50,521 |  |  | $ | 51,058 |  |  | $ | 49,592 |
| Net Interest Income (GAAP) | $ | 34,131 |  |  | $ | 32,533 |  |  | $ | 31,357 |  |  | $ | 29,687 |  |  | $ | 28,438 |
| Add: Tax-Equivalent adjustment (Non-GAAP) | 121 |  |  | 148 |  |  | 155 |  |  | 157 |  |  | 149 |
| Net Interest Income - Tax Equivalent (Non-GAAP) | $ | 34,252 |  |  | $ | 32,681 |  |  | $ | 31,512 |  |  | $ | 29,844 |  |  | $ | 28,587 |
| Average Earning Assets | $ | 4,199,115 |  |  | $ | 4,142,993 |  |  | $ | 4,143,939 |  |  | $ | 4,167,039 |  |  | $ | 4,075,162 |
| Net Interest Margin (Non-GAAP)* | 3.24 | % |  | 3.16 | % |  | 3.08 | % |  | 2.85 | % |  | 2.79 | %
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 September 30, 2025 CET1 ratio listed in the tables (i.e., 13.07%) 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.
|  | 9/30/2025 |  | 6/30/2025 |  | 12/31/2024 |  | 12/31/2024 |  | 9/30/2024
| Total Risk Weighted Assets | $ | 3,095,225 |  |  | $ | 3,121,451 |  |  | $ | 3,143,547 |  |  | $ | 3,126,364 |  |  | $ | 3,110,178 |
| Common Equity Tier 1 Capital | 404,426 |  |  | 397,432 |  |  | 395,900 |  |  | 397,285 |  |  | 397,122 |
| Common Equity Tier 1 Ratio | 13.07 | % |  | 12.73 | % |  | 12.59 | % |  | 12.71 | % |  | 12.77 | %
* Quarterly ratios have been annualized. |  |  |  |  |  |  |  |  |

8

Arrow Financial Corporation
Average Consolidated Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands - Unaudited)

Quarter Ended: | September 30, 2025 |  | September 30, 2024
|  |  | Interest |  | Rate |  |  |  | Interest |  | Rate
| Average |  | Income/ |  | Earned/ |  | Average |  | Income/ |  | Earned/
| Balance |  | Expense |  | Paid |  | Balance |  | Expense |  | Paid
Interest-Earning Deposits at Banks | $ | 200,251 |  |  | $ | 2,245 |  |  | 4.45 | % |  | $ | 154,937 |  |  | $ | 2,103 |  |  | 5.40 | %
Investment Securities: |  |  |  |  |  |  |  |  |  |  |
Fully Taxable | 509,599 |  |  | 4,066 |  |  | 3.17 |  |  | 497,450 |  |  | 2,656 |  |  | 2.12 |
Exempt from Federal Taxes | 64,481 |  |  | 455 |  |  | 2.80 |  |  | 92,902 |  |  | 562 |  |  | 2.41 |
Loans (1) | 3,424,784 |  |  | 46,832 |  |  | 5.43 |  |  | 3,329,873 |  |  | 44,122 |  |  | 5.27 |
Total Earning Assets (1) | 4,199,115 |  |  | 53,598 |  |  | 5.06 |  |  | 4,075,162 |  |  | 49,443 |  |  | 4.83 |
Allowance for Credit Losses | (34,143) |  |  |  |  |  |  | (31,147) |  |  |  |  |
Cash and Due From Banks | 33,984 |  |  |  |  |  |  | 33,159 |  |  |  |  |
Other Assets | 200,859 |  |  |  |  |  |  | 168,423 |  |  |  |  |
Total Assets | $ | 4,399,815 |  |  |  |  |  |  | $ | 4,245,597 |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Checking Accounts | $ | 848,622 |  |  | 2,160 |  |  | 1.01 |  |  | $ | 785,134 |  |  | 1,966 |  |  | 1.00 |
Savings Deposits | 1,492,204 |  |  | 9,534 |  |  | 2.53 |  |  | 1,492,888 |  |  | 10,905 |  |  | 2.91 |
Time Deposits of $250,000 or More | 177,826 |  |  | 1,695 |  |  | 3.78 |  |  | 174,028 |  |  | 1,803 |  |  | 4.12 |
Other Time Deposits | 644,598 |  |  | 5,859 |  |  | 3.61 |  |  | 498,767 |  |  | 4,934 |  |  | 3.94 |
Total Interest-Bearing Deposits | 3,163,250 |  |  | 19,248 |  |  | 2.41 |  |  | 2,950,817 |  |  | 19,608 |  |  | 2.64 |
Borrowings | 5,583 |  |  | — |  |  | — |  |  | 109,230 |  |  | 1,177 |  |  | 4.29 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 |  |  | 173 |  |  | 3.43 |  |  | 20,000 |  |  | 173 |  |  | 3.44 |
Finance Leases | 4,956 |  |  | 46 |  |  | 3.68 |  |  | 5,019 |  |  | 47 |  |  | 3.73 |
Total Interest-Bearing Liabilities | 3,193,789 |  |  | 19,467 |  |  | 2.42 |  |  | 3,085,066 |  |  | 21,005 |  |  | 2.71 |
Noninterest-Bearing Deposits | 750,471 |  |  |  |  |  |  | 721,311 |  |  |  |  |
Other Liabilities | 42,497 |  |  |  |  |  |  | 51,316 |  |  |  |  |
Total Liabilities | 3,986,757 |  |  |  |  |  |  | 3,857,693 |  |  |  |  |
Stockholders’ Equity | 413,058 |  |  |  |  |  |  | 387,904 |  |  |  |  |
Total Liabilities and Stockholders’ Equity | $ | 4,399,815 |  |  |  |  |  |  | $ | 4,245,597 |  |  |  |  |
Net Interest Income |  |  | $ | 34,131 |  |  |  |  |  |  | $ | 28,438 |  |  |
Net Interest Spread |  |  |  |  | 2.64 | % |  |  |  |  |  | 2.12 | %
Net Interest Margin |  |  |  |  | 3.22 | % |  |  |  |  |  | 2.78 | %

(1) Includes Nonaccrual Loans.
9

Arrow Financial Corporation
Average Consolidated Balance Sheets and Net Interest Income Analysis
(Dollars in Thousands - Unaudited)

Quarter Ended: | September 30, 2025 |  | June 30, 2025
|  |  | Interest |  | Rate |  |  |  | Interest |  | Rate
| Average |  | Income/ |  | Earned/ |  | Average |  | Income/ |  | Earned/
| Balance |  | Expense |  | Paid |  | Balance |  | Expense |  | Paid
Interest-Earning Deposits at Banks | $ | 200,251 |  |  | $ | 2,245 |  |  | 4.45 | % |  | $ | 145,473 |  |  | $ | 1,622 |  |  | 4.47 | %
Investment Securities: |  |  |  |  |  |  |  |  |  |  |
Fully Taxable | 509,599 |  |  | 4,066 |  |  | 3.17 |  |  | 496,614 |  |  | 3,790 |  |  | 3.06 |
Exempt from Federal Taxes | 64,481 |  |  | 455 |  |  | 2.80 |  |  | 85,766 |  |  | 561 |  |  | 2.62 |
Loans (1) | 3,424,784 |  |  | 46,832 |  |  | 5.43 |  |  | 3,415,140 |  |  | 45,600 |  |  | 5.36 |
Total Earning Assets (1) | 4,199,115 |  |  | 53,598 |  |  | 5.06 |  |  | 4,142,993 |  |  | 51,573 |  |  | 4.99 |
Allowance for Credit Losses | (34,143) |  |  |  |  |  |  | (35,238) |  |  |  |  |
Cash and Due From Banks | 33,984 |  |  |  |  |  |  | 29,267 |  |  |  |  |
Other Assets | 200,859 |  |  |  |  |  |  | 195,317 |  |  |  |  |
Total Assets | $ | 4,399,815 |  |  |  |  |  |  | $ | 4,332,339 |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Checking Accounts | $ | 848,622 |  |  | 2,160 |  |  | 1.01 |  |  | $ | 845,041 |  |  | 1,941 |  |  | 0.92 |
Savings Deposits | 1,492,204 |  |  | 9,534 |  |  | 2.53 |  |  | 1,494,930 |  |  | 9,367 |  |  | 2.51 |
Time Deposits of $250,000 or More | 177,826 |  |  | 1,695 |  |  | 3.78 |  |  | 179,980 |  |  | 1,726 |  |  | 3.85 |
Other Time Deposits | 644,598 |  |  | 5,859 |  |  | 3.61 |  |  | 638,376 |  |  | 5,793 |  |  | 3.64 |
Total Interest-Bearing Deposits | 3,163,250 |  |  | 19,248 |  |  | 2.41 |  |  | 3,158,327 |  |  | 18,827 |  |  | 2.39 |
Borrowings | 5,583 |  |  | — |  |  | — |  |  | 8,601 |  |  | — |  |  | — |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 |  |  | 173 |  |  | 3.43 |  |  | 20,000 |  |  | 171 |  |  | 3.43 |
Finance Leases | 4,956 |  |  | 46 |  |  | 3.68 |  |  | 4,978 |  |  | 42 |  |  | 3.38 |
Total Interest-Bearing Liabilities | 3,193,789 |  |  | 19,467 |  |  | 2.42 |  |  | 3,191,906 |  |  | 19,040 |  |  | 2.39 |
Noninterest-Bearing Deposits | 750,471 |  |  |  |  |  |  | 690,766 |  |  |  |  |
Other Liabilities | 42,497 |  |  |  |  |  |  | 43,138 |  |  |  |  |
Total Liabilities | 3,986,757 |  |  |  |  |  |  | 3,925,810 |  |  |  |  |
Stockholders’ Equity | 413,058 |  |  |  |  |  |  | 406,529 |  |  |  |  |
Total Liabilities and Stockholders’ Equity | $ | 4,399,815 |  |  |  |  |  |  | $ | 4,332,339 |  |  |  |  |
Net Interest Income |  |  | $ | 34,131 |  |  |  |  |  |  | $ | 32,533 |  |  |
Net Interest Spread |  |  |  |  | 2.64 | % |  |  |  |  |  | 2.60 | %
Net Interest Margin |  |  |  |  | 3.22 | % |  |  |  |  |  | 3.15 | %

(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: | September 30, 2025 |  | September 30, 2024
|  |  | Interest |  | Rate |  |  |  | Interest |  | Rate
| Average |  | Income/ |  | Earned/ |  | Average |  | Income/ |  | Earned/
| Balance |  | Expense |  | Paid |  | Balance |  | Expense |  | Paid
Interest-Earning Deposits at Banks | $ | 164,114 |  |  | $ | 5,488 |  |  | 4.47 | % |  | $ | 164,208 |  |  | $ | 6,735 |  |  | 5.48 | %
Investment Securities: |  |  |  |  |  |  |  |  |  |  |
Fully Taxable | 502,075 |  |  | 11,464 |  |  | 3.05 |  |  | 526,181 |  |  | 8,851 |  |  | 2.25 |
Exempt from Federal Taxes | 80,628 |  |  | 1,603 |  |  | 2.66 |  |  | 108,872 |  |  | 1,867 |  |  | 2.29 |
Loans (1) | 3,415,401 |  |  | 136,982 |  |  | 5.36 |  |  | 3,282,175 |  |  | 126,639 |  |  | 5.15 |
Total Earning Assets (1) | 4,162,218 |  |  | 155,537 |  |  | 5.00 |  |  | 4,081,436 |  |  | 144,092 |  |  | 4.72 |
Allowance for Credit Losses | (34,359) |  |  |  |  |  |  | (31,340) |  |  |  |  |
Cash and Due From Banks | 31,598 |  |  |  |  |  |  | 30,534 |  |  |  |  |
Other Assets | 193,174 |  |  |  |  |  |  | 162,194 |  |  |  |  |
Total Assets | $ | 4,352,631 |  |  |  |  |  |  | $ | 4,242,824 |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |
Interest-Bearing Checking Accounts | $ | 844,774 |  |  | 5,904 |  |  | 0.93 |  |  | $ | 815,933 |  |  | 5,510 |  |  | 0.90 |
Savings Deposits | 1,500,944 |  |  | 28,384 |  |  | 2.53 |  |  | 1,487,005 |  |  | 31,706 |  |  | 2.85 |
Time Deposits of $250,000 or More | 181,291 |  |  | 5,232 |  |  | 3.86 |  |  | 174,668 |  |  | 5,645 |  |  | 4.32 |
Other Time Deposits | 625,557 |  |  | 17,181 |  |  | 3.67 |  |  | 499,881 |  |  | 15,091 |  |  | 4.03 |
Total Interest-Bearing Deposits | 3,152,566 |  |  | 56,701 |  |  | 2.40 |  |  | 2,977,487 |  |  | 57,952 |  |  | 2.60 |
Borrowings | 12,455 |  |  | 167 |  |  | 1.79 |  |  | 104,257 |  |  | 3,439 |  |  | 4.41 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 |  |  | 513 |  |  | 3.43 |  |  | 20,000 |  |  | 514 |  |  | 3.43 |
Finance Leases | 4,977 |  |  | 135 |  |  | 3.63 |  |  | 5,034 |  |  | 142 |  |  | 3.77 |
Total Interest-Bearing Liabilities | 3,189,998 |  |  | 57,516 |  |  | 2.41 |  |  | 3,106,778 |  |  | 62,047 |  |  | 2.67 |
Noninterest-Bearing Deposits | 710,404 |  |  |  |  |  |  | 703,948 |  |  |  |  |
Other Liabilities | 44,203 |  |  |  |  |  |  | 50,207 |  |  |  |  |
Total Liabilities | 3,944,605 |  |  |  |  |  |  | 3,860,933 |  |  |  |  |
Stockholders’ Equity | 408,026 |  |  |  |  |  |  | 381,891 |  |  |  |  |
Total Liabilities and Stockholders’ Equity | $ | 4,352,631 |  |  |  |  |  |  | $ | 4,242,824 |  |  |  |  |
Net Interest Income |  |  | $ | 98,021 |  |  |  |  |  |  | $ | 82,045 |  |  |
Net Interest Spread |  |  |  |  | 2.59 | % |  |  |  |  |  | 2.05 | %
Net Interest Margin |  |  |  |  | 3.15 | % |  |  |  |  |  | 2.69 | %
(1) Includes Nonaccrual Loans. |  |  |  |  |  |  |  |  |  |  |

11

Arrow Financial Corporation
Consolidated Financial Information
(Dollars in Thousands - Unaudited)

Quarter Ended: | 9/30/2025 |  | 12/31/2024 |  |
Loan Portfolio |  |  |  |  |
Commercial Loans | $ | 170,330 |  |  | $ | 158,991 |  |  |
Commercial Real Estate Loans | 809,696 |  |  | 796,365 |  |  |
Subtotal Commercial Loan Portfolio | 980,026 |  |  | 955,356 |  |  |
Consumer Loans | 1,089,233 |  |  | 1,118,981 |  |  |
Residential Real Estate Loans | 1,372,750 |  |  | 1,320,204 |  |  |
Total Loans | $ | 3,442,009 |  |  | $ | 3,394,541 |  |  |
Allowance for Credit Losses |  |  |  |  |
Allowance for Credit Losses, Beginning of Quarter | $ | 34,191 |  |  | $ | 31,262 |  |  |
Loans Charged-off | (1,464) |  |  | (1,333) |  |  |
Less Recoveries of Loans Previously Charged-off | 634 |  |  | 815 |  |  |
Net Loans Charged-off | (830) |  |  | (518) |  |  |
Provision for Credit Losses | 815 |  |  | 2,854 |  |  |
Allowance for Credit Losses, End of Quarter | $ | 34,176 |  |  | $ | 33,598 |  |  |
Nonperforming Assets |  |  |  |  |
Nonaccrual Loans | $ | 5,615 |  |  | $ | 20,621 |  |  |
Loans Past Due 90 or More Days and Accruing | 685 |  |  | 398 |  |  |
Loans Restructured and in Compliance with Modified Terms | 6 |  |  | 20 |  |  |
Total Nonperforming Loans | 6,306 |  |  | 21,039 |  |  |
Repossessed Assets | 361 |  |  | 382 |  |  |
Other Real Estate Owned | — |  |  | 76 |  |  |
Total Nonperforming Assets | $ | 6,667 |  |  | $ | 21,497 |  |  |
Key Asset Quality Ratios |  |  |  |  |
Net Loans Charged-off to Average Loans, Quarter-to-date Annualized | 0.10 | % |  | 0.06 | % |  |
Provision for Credit Losses to Average Loans, Quarter-to-date Annualized | 0.09 | % |  | 0.34 | % |  |
Allowance for Credit Losses to Period-End Loans | 0.99 | % |  | 0.99 | % |  |
Allowance for Credit Losses to Period-End Nonperforming Loans | 541.96 | % |  | 159.69 | % |  |
Nonperforming Loans to Period-End Loans | 0.18 | % |  | 0.62 | % |  |
Nonperforming Assets to Period-End Assets | 0.15 | % |  | 0.50 | % |  |
Year-to-Date Period Ended: | 9/30/2025 |  | 12/31/2024 |  |
Allowance for Credit Losses |  |  |  |  |
Allowance for Credit Losses, Beginning of Year | $ | 33,598 |  |  | $ | 31,265 |  |  |
Loans Charged-off | (8,077) |  |  | (5,895) |  |  |
Less Recoveries of Loans Previously Charged-off | 2,227 |  |  | 3,048 |  |  |
Net Loans Charged-off | (5,850) |  |  | (2,847) |  |  |
Provision for Credit Losses | 6,428 |  |  | 5,180 |  |  |
Allowance for Credit Losses, End of Period | $ | 34,176 |  |  | $ | 33,598 |  |  |
Key Asset Quality Ratios |  |  |  |  |
Net Loans Charged-off to Average Loans, Annualized | 0.23 | % |  | 0.09 | % |  |
Provision for Loan Losses to Average Loans, Annualized | 0.25 | % |  | 0.16 | % |  |

12