AROWHIGH SIGNALOPPORTUNITY10-K

Arrow Bank appears to be undergoing a transformational merger with Adirondack while delivering exceptional financial performance across all key metrics.

The language changes reveal Arrow is pursuing a major merger with Adirondack Bank, which explains the strong financial performance as both companies likely prepared for the transaction. The removal of previous operational risk language about subsidiary bank unification suggests Arrow has successfully resolved prior integration challenges, positioning it well for this new merger.

Comparing 2026-03-06 vs 2025-03-14View on EDGAR →
FINANCIAL ANALYSIS

Arrow delivered outstanding financial results with net income surging 47.9% to $44.0M while credit quality improved as provision for credit losses declined 20.3%. The company strengthened its balance sheet significantly, reducing total debt by 50.4% while growing cash reserves 15.7% to $84.2M, and increased share buybacks by 50.8% to $10.2M alongside 19.8% growth in operating cash flow. This comprehensive financial strength across profitability, liquidity, and capital allocation suggests Arrow entered merger negotiations from a position of strength and operational excellence.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+50.8%
$6.8M→$10.2M

Share repurchases increased 50.8% — management returning capital, signals confidence in intrinsic value.

Total Debt
Balance Sheet
-50.4%
$8.6M→$4.3M

Debt reduced 50.4% — deleveraging strengthens balance sheet and reduces financial risk.

Net Income
P&L
+47.9%
$29.7M→$44.0M

Net income grew 47.9% — bottom-line growth signals improving overall business health.

Provision for Credit Losses
P&L
-20.3%
$2.6M→$2.1M

Provisions reduced 20.3% — improving credit quality or reserve release boosting reported earnings.

Operating Cash Flow
Cash Flow
+19.8%
$34.5M→$41.3M

Operating cash flow grew 19.8% — strong conversion of earnings to cash, healthy business fundamentals.

Cash & Equivalents
Balance Sheet
+15.7%
$72.8M→$84.2M

Cash grew 15.7% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-03-06
PRIOR — 2025-03-14
ADDED
Unresolved Staff Comments 19 Item 1C.Cybersecurity 19 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.
This peer group is not, however, identical to either of the peer groups comprising the two bank indices included in the stock performance graph on pages 21 and 22 of this Report.
Geopolitical and other external events, such as severe weather, natural disasters, public health emergencies and pandemics, acts of war or terrorism, and other external events could impact Arrow Bank s ability to conduct business.
The market price of Arrow s common stock may decline as a result of the Merger.
Combining Arrow and Adirondack may be more difficult, costly or time-consuming than expected, and Arrow may fail to realize the anticipated benefits of the Merger.
The Agreement may be terminated in accordance with its terms and the Merger may not be completed.
Arrow Bank is subject to risks and losses resulting from fraudulent activities that could adversely impact its financial performance and results of operations.
Arrow Bank s commercial and commercial real estate loans increase its exposure to credit risks.
Arrow Bank s indirect and consumer lending involves risk elements in addition to normal credit risk.
REMOVED
Unresolved Staff Comments 16 Item 1C.Cybersecurity 16 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.
This peer group is not, however, identical to either of the peer groups comprising the two bank indices included in the stock performance graphs on pages 19 and 20 of this Report.
Health emergencies may adversely affect Arrow s business activities, financial condition and results of operations.
Arrow may not realize the anticipated benefits of unifying its two former subsidiary banks into one bank.
The Company relies on the operations of its subsidiaries to provide liquidity, which, if limited, could impact Arrow's ability to pay dividends to its shareholders or to repurchase its common stock.
USE OF NON-GAAP FINANCIAL MEASURES The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain non-GAAP financial measures.
GAAP is generally accepted accounting principles in the United States of America.
Net interest income as utilized in calculating the efficiency ratio is typically the same as the net interest income presented in Selected Financial Information table discussed in the preceding paragraph, i.e., it is expressed on a tax-equivalent basis.
Until December 31, 2024, Arrow operated with two subsidiaries which were nationally-chartered banks in New York, GFNB and SNB.
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