3Q 2026 October 29, 2026 1
The information contained in this investor presentation 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, geopolitical events, difficulties in managing Arrow’s growth, competition, changes in law or the regulatory environment, risks related to the integration of Adirondack Bancorp, Inc. and Adirondack Bank 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 document should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 10-K”), other filings with the SEC and the third quarter 2026 earnings release issued October 29, 2026. This presentation makes use of certain non-GAAP terms and metrics commonly accepted and widely used within the banking industry, including, but not limited to, Tangible Book Value per Share (TBV/Share), Full Tax Equivalent (FTE), Tangible Common Equity (TCE), and Efficiency Ratio. Please refer to the Appendix to this presentation for a reconciliation of certain non-GAAP measures. 2 Safe Harbor
This presentation makes use of certain financial terms and non-GAAP measures, described below, commonly accepted and widely used within the banking industry. Please refer to the Appendix to this presentation for a reconciliation of certain non-GAAP measures. • Earnings per Share (EPS) • Tangible Book Value per Share (TBV/Share) • Full Tax Equivalent (FTE) • Tangible Common Equity (TCE) • Efficiency Ratio • Net Interest Margin (NIM) • Effective Tax Rate (ETR) • Merger-Related Expenses (MRE) • Return on Average Assets (ROA) • Return on Average Equity (ROE) • Allowance for Credit Losses (ACL) • Assets Under Management (AUM) • Available for Sale (AFS) • Held-to-Maturity (HTM) • Non-Performing Loans (NPL) 3 Glossary of Terms and Non-GAAP Measures
• M&A (Acquisition of Adirondack Bancorp, Inc., “ADK”) • 3Q26 Results and Performance Metrics • Non-Interest Income/Expense • Loans • Deposits/Funding Sources • Credit Quality & Provision for Credit Losses • Investments • Capital • Company Profile & Management Bios • Appendix 4 Table of Contents
M&A UPDATE 5
Acquisition Highlights Closed Adirondack Bancorp, Inc. acquisition on July 1, 2026 Added ~$600M in loans and ~$900M in deposits Purchase accounting substantially complete • Loan FV Purchase Accounting (Non-Credit) Discount ~$21M, 3.5%; Amortizes over ~4.5 years • Allowance for Credit Loss of $5.7M or 0.93% on acquired loans • Core Deposit Intangible ~$16M, 2.6%; Amortizes over 10 years • TBV Dilution at close ~ 9.4% (substantially in line with February deal announcement) • Goodwill ~$44.7M Key Ratios at close (July 1, 2026) – in line with deal announcement • TCE – 8.06%; TBV – $23.58; Leverage Ratio – 8.35% Combined entity delivering on Net Interest Margin, core EPS and core ROA expansion Cost savings on track with 95% expected to be in place by 1Q27 Core system conversion scheduled for November 7-8 6
Acquisition – Arrow/ADK Opening Balance Sheet 7 1 Variances are rounded based on actual whole-dollar amounts UNAUDITED Dollars in millions Balance Sheet Day 1 July 1, 2026 Cash & Cash Equivalents $238.4 Investment Securities 868.2 Loans Receivable, net 4,041.7 All Other Assets 367.3 Total Assets $5,515.6 Total Deposits $4,583.8 Total Borrowings 343.3 Other Liabilities 61.7 Total Liabilities $4,988.8 Stockholders' Equity $526.8 Total Liabilities & Stockholders' Equity $5,515.6
3Q26 & YTD RESULTS 8
3Q26 and YTD Highlights 3Q26 Net Income of $5.7 million, or $0.31 EPS; YTD $30.1 million or $1.75 EPS • 3Q26 included $15.6M of merger-related expenses; lowering reported EPS by $0.66 • YTD 2026 included $17.4M of merger-related expenses; lowering reported EPS by $0.80 Core EPS of $0.97 for 3Q26; YTD $2.55 FTE 3Q26 NIM of 3.81%; YTD 3.59% Strong 3Q26 organic loan growth of ~$60 million, or 6.8% (annualized) • YTD loan growth of ~$103M, or 4.0% (annualized) Continued strong credit metrics with 3Q NPLs at 0.30% and YTD NCOs of 0.14% • NCOs include $1.6M, or 6bps, for previously reserved CRE exposure disclosed in 2Q26 • Allowance to NPL coverage of 329% Branch optimization • Closed one branch in 3Q, one closing in Nov. 2026 and two more under review for 1H27 Rising rates/shift in yield curve negatively impacted TCE & TBV in 3Q • TBV reduction of ~$0.69 • TCE reduction of ~0.24% 3Q efficiency ratio at 58.8% excluding merger-related expenses • Cost savings from acquisition not yet fully realized; 95% to be realized/in place by 1Q27 9
3Q26 Summary 10 (1) MRE represents merger-related expenses of $15.6M in 3Q26 EPS of $0.31 $0.97 excl. MRE(1) ROAA of 0.42% 1.33% excl. MRE ROAE of 4.26% 13.50% excl. MRE Organic Loan Growth of ~$60M, 6.8% annualized FTE NIM 3.81% TCE of 7.82% TBV of $23.03 Net Charge-Offs 0.21% NPLs $12.5M; 0.30% of Total Loans • TCE/TBV impacted by 3Q rate environment
YTD September 2026 Summary 11 (1) MRE represents merger-related expenses of $17.4M YTD 2026 Organic Loan Growth of ~$103M, 4.0% annualized ROAA of 0.85% 1.23% excl. MRE ROAE of 8.54% 12.43% excl. MRE Loan-To-Deposit Ratio of 87.45% Wholesale Funding Ratio of 3.34% Allowance for Credit Loss 0.99% EPS of $1.75 $2.55 excl. MRE(1) Net Charge-Offs 0.14%
Net Interest Margin 12 1 Yield includes the impact of deferred fees and amortization of loan origination costs 2 FTE has historically been 1-2 bps higher than NIM reported under GAAP 3.24% 3.25% 3.48% 3.43% 3.81% 3Q25 4Q25 1Q26 2Q26 3Q26 3.24% 3.25% 3.48% 3.43% 3.81% 5.43% 5.45% 5.55% 5.46% 5.69% 1.95% 1.93% 1.80% 1.74% 1.45% 3Q25 4Q25 1Q26 2Q26 3Q26 NIM Average Loan Yield¹ for the Period Shown Cost of Deposits NIM benefitted from: • Lower average cost of funds from ADK acquisition • 14bps from merger-related accretion/amortization All NIM presented on a fully taxable equivalent basis (FTE2)
Adirondack Bank Acquisition Accounting Impact 13 Net Interest Income Accretion Non-Interest Expense Amortization $ in millions 3Q26 Loans $1.3 Securities AFS 0.7 Asset Accretion 2.0 Time Deposits (0.2) Liability Accretion (0.2) Total Accretion $1.8 $ in millions 3Q26 Core Deposit Intangible $(0.7) Total Amortization $(0.7) Projected Future Impact • 3Q Income Accretion/Expense Amortization run-rate expected to continue into 2027 • Fair Value Interest Rate mark on loans at end of 3Q at ~$19.1 million • Core Deposit Intangible at end of 3Q at ~$15.6 million
3Q 2026 Consolidated Financial Statements 141 Variances are rounded based on actual whole-dollar amounts 1 Variances are rounded based on actual whole-dollar amounts Linked Quarter and Prior Year Period UNAUDITED Dollars in millions Balance Sheet 3Q26 2Q26 3Q25 3Q26 vs 2Q261 3Q26 vs 3Q251 Cash & Cash Equivalents $378.8 $186.8 $397.4 $192.0 ($18.6) Investment Securities 693.6 588.0 558.4 105.6 135.2 Loans Receivable, net 4,103.5 3,460.4 3,407.9 643.1 695.6 All Other Assets 371.2 247.2 223.4 124.0 147.8 Total Assets $5,547.1 $4,482.4 $4,587.1 $1,064.7 $960.0 Total Deposits $4,738.9 $3,655.2 $4,100.0 $1,083.7 $638.9 Total Borrowings 218.3 330.2 29.2 (111.9) 189.1 Other Liabilities 74.8 50.7 40.2 24.1 34.6 Total Liabilities $5,032.0 $4,036.1 $4,169.4 $995.9 $862.6 Stockholders' Equity $515.1 $446.3 $417.7 $68.8 $97.4 Total Liabilitie & Stockholders' Equity $5,547.1 $4,482.4 $4,587.1 $1,064.7 $960.0
3Q 2026 Consolidated Financial Statements 151 Variances are rounded based on actual whole-dollar amounts UNAUDITED Dollars in millions, except per share data Linked Quarter Income Statement 3Q26 2Q26 Fav/(Unfav) Var1 Total Interest Income $68.0 $53.6 $14.4 Total Interest Expense 19.3 17.7 (1.6) Net Interest Income $48.7 $35.9 $12.8 Non-Interest Income $11.4 $8.3 $3.1 Operating Expenses $36.2 $26.5 ($9.7) Merger Related Expenses 15.6 1.0 (14.6) Non-Interest Expense 51.8 27.5 (24.3) Pre-Tax, Pre-Provision Net Revenue $8.3 $16.7 ($8.4) Provision for Credit Losses $1.5 $2.8 $1.3 Pre-Tax Income $6.8 $13.9 ($7.1) Income Tax Expense $1.1 $2.9 $1.8 Reported Net Income $5.7 $11.0 ($5.3) EPS $0.31 $0.66 ($0.35)
YTD 2026 Consolidated Financial Statements 16 1 Variances are rounded based on actual whole-dollar amounts 2 Non-core expenses include merger-related expenses and unification expenses UNAUDITED Dollars in millions, except per share data YTD Comparative Income Statement YTD 3Q26 YTD 3Q25 Fav/(Unfav) Var1 Total Interest Income $175.5 $155.5 $20.0 Total Interest Expense 54.7 57.5 2.8 Net Interest Income $120.8 $98.0 $22.8 Non-Interest Income $28.3 $24.1 $4.2 Operating Expenses $88.8 $74.8 ($14.0) Non-Core Expenses2 17.4 2.3 (15.1) Non-Interest Expense 106.2 77.1 (29.1) Pre-Tax, Pre-Provision Net Revenue $42.9 $45.0 ($2.1) Provision for Credit Losses $4.8 $6.4 $1.6 Pre-Tax Income $38.1 $38.6 ($0.5) Income Tax Expense $8.0 $8.7 $0.7 Reported Net Income $30.1 $29.9 $0.2 EPS $1.75 $1.80 ($0.05)
NON-INTEREST INCOME/EXPENSE 17
3Q 2026 Non-Interest Income 18 Dollars in thousands • Positive variance in fee income driven by acquisition of ADK • Wealth Management revenue up ~$500K or 7%, over same period for prior year • 3Q impacted by market performance, AUM up 7% YoY, but down 1% for 3Q26 • Insurance revenue up ~$600K or 11%, over same period for prior year • M&A supplementing organic growth • Skene Valley Insurance agency acquisition added ~$50K in September; expected to add ~$150K for 4Q26 • Other Operating Income benefitting from ADK acquisition September 30, 2026 June 30, 2026 September 30, 2026 September 30, 2025 Fees for Other Services to Customers $ 4,243 $ 2,969 $ 9,939 $ 8,244 Fiduciary Activities/Wealth Management 2,609 2,706 8,028 7,533 Insurance Commissions 2,145 1,974 6,232 5,616 Other Operating Income 2,418 607 4,100 2,771 Total Non-Interest Income $ 11,415 $ 8,256 $ 28,299 $ 24,164 Three Months Ended Nine Months Ended
3Q 2026 Non-Interest Expense 19 • Majority of 3Q variance to 2Q driven by addition of ADK expenses (non-MRE) • Compensation increase driven by ADK head count (permanent & temporary ~$3M) • Technology & Equipment includes temporary cost of two operating systems and duplicate IT (Network) charges, etc. • Other Expenses includes $700k of CDI amortization and higher expense run-rate of the combined entities Dollars in thousands September 30, 2026 June 30, 2026 September 30, 2025 Compensation & Benefits $ 19,391 $ 15,097 $ 14,339 Occupancy Expense 2,805 2,101 1,907 Technology & Equipment 6,976 4,757 4,963 Advertising & Contributions 489 477 438 Legal & Professional 1,691 1,139 1,030 FDIC Assessment 903 441 634 All Other Expenses 3,964 2,481 2,122 Operating Expenses 36,219 26,493 25,433 Merger-Related Expenses 15,609 971 0 Total Non-Interest Expense $ 51,828 $ 27,464 $ 25,433 Three Months Ended
LOANS 20
Loans 21 Loan Portfolio ~ $4.14 billion As of September 30, 2026 • 3Q26 portfolio exit rates2 up ~2bps from 2Q26 • Average origination rate exceeded portfolio exit rate in 3Q26 • No single relationship represents > ~1.75% of total loans 1 Commercial (C&I) includes owner-occupied real estate loans 2 Loan exit rate is the point in time rate in effect at the end of the reporting period 3Portfolio exit rates and originations calculated on a weighted-average basis 4Variable-rate loans or loans that reprice within 12 months 3Q Exit Rate2 3Q Originations Consumer 6.72% 6.73% Commercial Real Estate (CRE) 5.41% 6.03% Commercial (C&I) 5.67% 6.15% Residential Real Estate (RRE) 5.00% 6.12% Total Portfolio3 5.62% 6.44% Consumer CRE and C&I • Auto loans sourced through a network of ~520 dealers in NY, VT and NH • Loans are underwritten/credit scored by Arrow • >75% of auto loan balances have FICO scores >700 • Less than 4% have FICO scores <620 • Average portfolio FICO score is 742 • ~28% new, ~72% used vehicles exposure • Portfolio turns in less than 36 months, or ~$40M per month • CRE concentration ratio of ~130% of risk-based capital • No major concentration in Office, Retail, Hotels/Motels Amount ($) % of Segment % of Total Portfolio RRE $184 million 11% 4% CRE $197 million 26% 5% C&I $105 million 18% 3% Total Portfolio $486 million N/A 12% Loan Repricing over next 12 months4 C&I1 13.7% CRE 18.3% Consumer 26.5% RRE 41.5% $1.7B C&I1 25.6% CRE 27.3% Consumer 1.0% $6M RRE 46.2% Day 1 ADK ~ $587 million (incl. ~($21M) discount) $0.6B $0.7B $1.1B $271M $150M $160M
DEPOSITS/FUNDING SOURCES 22
Deposit Balances – Excl. Brokered CDs 23 19.8% 20.1% 23.4% 24.0% 23.7% 23.9% 23.3% 24.3% 42.8% 43.5% 39.8% 38.9% 13.7% 12.5% 13.5% 12.8% 2025 2Q26 Day 1 Combined 3Q26 Time Deposits Savings Deposits Interest-Bearing Checking Noninterest-Bearing 36.4% 19.2% 26.9% 17.5% Day 1 - ADK $3.64 $3.66 $4.58 $4.74 $0.93 Dollars in billions
Deposit Analysis 24 • Addition of ADK deposits has lowered deposit exit rates • Disciplined pricing continues to offset market pressure for higher rates • 3Q26 includes negative impact of seasonal change in municipal deposit mix toward higher- costing deposits Dollars in millions Balance Exit Rate Balance Exit Rate Balance Exit Rate Demand (Non-Interest Bearing) $1,138 0.00% $736 0.00% $402 0.00% Interest Bearing Checking $1,154 0.94% $872 1.19% $282 -0.25% Savings and Money Market $1,839 2.13% $1,591 2.07% $248 0.06% Time Deposits $608 2.74% $456 2.81% $152 -0.07% Total $4,739 1.41% $3,655 1.54% $1,084 -0.13% 3Q 2026 2Q 2026 Variance
CREDIT QUALITY & PROVISION FOR CREDIT LOSSES 25
Credit Quality 26 Dollars in millions 0.18% 0.24% 0.13% 0.24% 0.30% 3Q25 4Q25 1Q26 2Q26 3Q26 Non-Performing Loans (NPL) / Gross Loans $6.3 $8.5 $4.4 $8.3 $12.5 • YTD 2026 annualized charge-offs were 14bps • Allowance for credit losses to loans is 0.99% • Allowance to NPL coverage of 329% 0.10% 0.05% 0.15% • Legacy Arrow portfolio • Acquired ADK loan portfolio • Remainder of partially charged-off commercial credit
Delinquent Loan Trends 27 Delinquent loans are defined as being greater than 30 days and less than 89 days past due and still accruing interest 0.58% 0.62% 0.76% 0.56% 0.61% 0.60% 0.60% 0.53% 0.58% 0.69% 0.84% 0.73% 0.67% 0.59% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Delinquent Loans to Total Loans • 3Q delinquency rate includes acquired ADK portfolio • Overall level of loan delinquencies near lows for last three years • Expecting seasonal increase in 4Q
Allowance for Credit Losses 28 $34,322 ($3,711) $3,711 $1,131 $5,678 $41,131 4Q 2025 Net Charge-Offs Net Charge-Offs Loan Growth & Model Calculation Acquisition of ADK* 3Q 2026 Provision for Credit Losses $4.8M Dollars in thousands YTD 2026 Allowance for Credit Loss Walk • Net charge-offs include ~$1.6M for previously (2Q) reserved CRE loan • Overall ACL at 0.99% • ACL for acquired portfolio at 0.93% *Includes $1.7M purchase accounting credit mark
INVESTMENTS 29
Investment Portfolio – AFS and HTM 301 Unrealized Gain/(Loss) on HTM for informational purposes only – not reflected in OCI Book yield reflects accretion impact Book yield increased 26bps from 2Q Unrealized loss at ~5.6% (incl. HTM) – driven by rising rates/shift in interest rate environment in 3Q Duration decreased from 3.23 years to 3.17 years Dollars in thousands September 30, 2026 SBA (475) 5.01% 4.32 3.52 0 1.56 0.85 0.54 0.63 2.34% 2.50% 77 3.17 Duration 3.31 0.85 3.72 3.02 1.77 4.98 3.42 0.80 1.97 (1,778)$ 4.39% 3.69 0$ (342) Agency CMO Municipal - Local Other Total AFS US Treasuries 7.02% 6.53% 3.77% 0 (170) (39,206)$ Municipal 10,748 10,442 (306) 4.21% 2.10 485 39,400 Market Value 44,187 15,454 46,294 910 866 46,292 160 26,081 609,085$ 1,567$ 78,704$ 76,926$ 38,925 Category 24,888$ 58,205 56,691 (1,514) 4.66% 390,294 355,673 (34,621) 3.22% Unrealized Gain / (Loss)1 Book Yield 3.46% Current Book Value 44,529 Total Investments US Agencies 160 26,251 648,291$ 1,600$ Agency MBS (39,598)$ Agency MBS Agency CMO Municipal Municipal - Local Total HTM 15,141 64,258$ (33)$ (44) Expected Run-Off by EOY 2026 0 14,408 3,832 3.87 Wtd Avg Remaining Life 0.88 4.51 3.51 4,090 1,717 6,163$ 1.77 8.81 4.19 0.84 1.70 0.90 0.54 0.65 0 0 18,725$ 279$ 712,549$ 672,951$ 2.92% 4.85% 4.29% 3.82% (313) (2) (392)$ 63,866$
CAPITAL 31
Fully Diluted Tangible Book Value (TBV) 32 $25.44 ($0.69) $0.66 ($0.66) $1.55 $0.31 ($0.30) ($3.28) $23.03 2Q 2026 Net Inc. - Reported Dividends AOCI Add. Core Net Inc MRE Equity Raised Acq - GW & Intang 3Q 2026 3Q 2026 TBV / Share Walk TBV Dilution from Acquisition - $2.39 / 9.4%
Capital Position 33 1 Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report 2 Non-GAAP measure. See reconciliation in Appendix 8.93% 11.63% 12.35% 13.46% 7.82% 10.19% 13.21% 13.83% 14.98% 9.44% 4.00% 4.50% 6.00% 8.00% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% Tier 1 Leverage Ratio Common Equity Tier 1 Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Tangible Common Equity² Capital Ratios – Arrow Financial Corporation1 Minimum Regulatory Capital Ratios 2Q 2026 3Q 2026
Capital Position 34 1 Regulatory capital ratios are estimated, subject to finalization as part of the current quarter Call Report Maintaining strong regulatory capital ratios post acquisition 8.38% 11.64% 11.64% 12.75% 9.33% 12.71% 12.71% 13.87% 4.00% 4.50% 6.00% 8.00% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% Tier 1 Leverage Ratio Common Equity Tier 1 Capital Tier 1 Risk-Based Capital Total Risk-Based Capital Capital Ratios – Arrow Bank1 Minimum Regulatory Capital Ratios 2Q 2026 3Q 2026
COMPANY PROFILE & MANAGEMENT BIOS 35
Our Profile – As of September 30, 2026 • Expanded footprint from Acquisition • $5.5 billion in assets • Approximately 725 employees • Primary service area population of more than 1.4 million 36 Insurance Offices Bank Branches 956
President and Chief Executive Officer 37 Mr. DeMarco joined the Company in 1987 as a commercial lender and since that time has served in positions of increasing responsibility within the organization. In 2012, he was named President and CEO of Saratoga National Bank, now named Arrow Bank. In 2023, he was named President and CEO of Arrow Financial Corporation and Glens Falls National Bank, now named Arrow Bank. He holds a bachelor’s degree in finance from the University of Texas at Austin. Mr. DeMarco is a graduate of the Adirondack Regional Chamber of Commerce’s Leadership Program and the Stonier Graduate School of Banking. He serves as a Director of the Company and Arrow Bank and sits on the boards of various non-profits dedicated to healthcare and economic development. David S. DeMarco President and CEO
Experienced Leadership Team 38 Penko Ivanov Senior Executive Vice President, Chief Financial Officer, Treasurer and Chief Accounting Officer Andrew J. Wise Senior Executive Vice President, Chief Risk Officer Marc Yrsha Senior Executive Vice President, Chief Banking Officer Mr. Ivanov joined the Company in 2023 with more than 30 years of experience in Financial Planning & Analysis, Controllership, SOX, Financial Reporting and Treasury. Mr. Ivanov previously served as CFO for Bankwell Financial Group, helping it almost double in size over six-plus years to $3.3 billion. He has held CFO positions at Darien Rowayton Bank and for Doral Bank’s U.S. Operations. He began his career with Ernst & Young and held accounting/ finance positions at PepsiCo, GE Capital and Bridgewater Associates. Mr. Ivanov holds an MBA and bachelor’s degree in accounting and finance from the University of South Florida. He is also Six Sigma Black Belt certified. Mr. Wise joined the Company in 2016 as Senior Vice President of Administration for Glens Falls National Bank, now named Arrow Bank. He has since been promoted to Senior Executive Vice President and Chief Risk Officer of the Company. He has more than 30 years of experience building and leading both community banks and bank-owned insurance agencies. Mr. Wise previously served as Vice President and CISO for The Adirondack Trust Company and acted as Executive Vice President, COO for Wise Insurance Brokers, Inc. He has extensive experience in designing, implementing and managing workflows and delivering operational efficiency. He holds a bachelor’s degree from Boston University’s School of Management. Mr. Yrsha joined the Company in 2015. He currently is the Chief Banking Officer and oversees the strategic direction of the Retail Banking unit, which includes retail deposits and lending, business development, consumer payments, business services, municipal banking, as well as small business and retail lending. In addition, he oversees the Wealth Management division and Marketing. Prior to joining our Company, Mr. Yrsha spent time in retail and commercial lending at large regional and community banks within the Arrow footprint. Mr. Yrsha is active in the community serving in leadership roles on a variety of boards. He is a graduate of Castleton University in Vermont and the Stonier School of Banking, with a Wharton Leadership certificate, and has completed the Adirondack Regional Chamber of Commerce’s Leadership Adirondack Program.
39 Michael Jacobs Executive Vice President, Chief Information Officer Brooke Pancoe Executive Vice President, Chief Human Resources Officer Mr. Jacobs joined the Company in 2003 as Information Systems Manager. He was later promoted to Senior Vice President and then Executive Vice President. As Chief Information Officer, Mr. Jacobs guides the Company’s strategic technology plans. He has more than 30 years of experience in the community banking industry, having previously served as Operations Manager at Cohoes Savings Bank and Item Processing Manager at Hudson River Bank and Trust. Mr. Jacobs earned a bachelor’s degree in finance from Siena College and an associate degree in business administration from Hudson Valley Community College. Ms. Pancoe joined the Company in 2018 as Director of Human Resources. In her current role as Chief Human Resources Officer, she has executive oversight of the Company’s human resource strategies, which includes organizational design and succession planning, talent acquisition and retention, performance management, professional development and compensation and benefits. Prior to joining the Company, Ms. Pancoe held various human resource management roles within the power generation and engineering services industry. Ms. Pancoe holds a bachelor’s degree in psychology from Clark University in Worcester, MA, and an MBA from the University at Albany. In addition, she maintains a certified professional human resources designation. Experienced Leadership Team
APPENDIX 40
Financial Snapshot 41 1 Non-GAAP measure. See reconciliation in Appendix Dollars in thousands, except per share amounts 2020 2021 2022 2023 2024 2025 YTD 2026 Total assets $3,688,636 $4,027,952 $3,969,509 $4,169,868 $4,306,348 $4,445,862 $5,547,054 Loans $2,595,030 $2,667,941 $2,983,207 $3,212,908 $3,394,541 $3,453,093 $4,144,587 Loan-to-deposit ratio 80.2% 75.1% 85.3% 87.1% 88.7% 87.7% 87.5% ROA 1.17% 1.28% 1.21% 0.74% 0.70% 1.00% 0.85% Efficiency ratio1 52.80% 54.16% 54.26% 68.81% 67.68% 61.97% 70.57% Net non-interest expense/avg assets 2.02% 2.00% 2.01% 2.28% 2.27% 2.34% 2.98% NIM 2.99% 2.97% 3.03% 2.65% 2.72% 3.19% 3.58% AFC Tier 1 Leverage Ratio 9.07% 9.20% 9.80% 9.84% 9.60% 9.68% 8.93% ROE 12.77% 14.09% 13.55% 8.29% 7.72% 10.66% 8.54% TBV1 per share $18.32 $20.41 $19.37 $21.06 $22.40 $24.71 $23.03 Net interest income $99,202 $110,355 $118,343 $104,832 $111,732 $133,164 $120,794 Net income $40,827 $49,857 $48,799 $30,075 $29,711 $43,953 $30,147 EPS $2.41 $2.92 $2.86 $1.77 $1.77 $2.65 $1.75
Reconciliation of Non-GAAP Financial Measures 42 Three months ended September 30, 2026 Nine months ended September 30, 2026 Interest Income (GAAP) $ 68,075 $ 175,486 Add: Tax-Equivalent adjustment (Non-GAAP) 148 404 Interest Income - Tax Equivalent (Non-GAAP) $ 68,223 $ 175,890 Net Interest Income (GAAP) $ 48,733 $ 120,794 Add: Tax-Equivalent adjustment (Non-GAAP) 148 404 Net Interest Income - Tax Equivalent (Non-GAAP) $ 48,881 $ 121,198 Average Earning Assets 5,089,406 4,510,904 Net Interest Margin (Non-GAAP) 3.81% 3.59% 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.
Reconciliation of Non-GAAP Financial Measures 43 Three months ended September 30, 2026 Nine months ended September 30, 2026 Non-Interest Expense $ 51,828 $ 106,157 Less: Intangible Asset Amortization 812 955 Net Non-Interest Expense $ 51,016 $ 105,202 Net Interest Income, Tax-Equivalent $ 48,881 $ 121,198 Non-Interest Income 11,415 28,299 Less: Net Gain (Loss) on Securities 114 414 Net Gross Income $ 60,182 $ 149,083 Efficiency Ratio 84.77% 70.57% 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).
Reconciliation of Non-GAAP Financial Measures 44 September 30, 2026 Total Stockholders' Equity (GAAP) $ 515,092 Less: Goodwill and Other Intangible assets, net 88,192 Tangible Equity (Non-GAAP) $ 426,900 Total Assets (GAAP) $ 5,547,054 Less: Goodwill and Other Intangible assets, net 88,192 Tangible Assets (Non-GAAP) $ 5,458,862 Tangible Equity to Tangible Assets (Non-GAAP) (TCE) 7.82% Period End Shares Outstanding 18,535 Tangible Book Value per Share (Non-GAAP) $ 23.03 Net Income 5,700 Return on Tangible Equity (Net Income/Tangible Equity - Annualized) 5.08% 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.
Reconciliation of Non-GAAP Financial Measures 45 Three months ended September 30, 2026 Net Income $ 5,700 Non-Core Expenses: Merger-Related Expenses 15,609 Less: Tax Benefit (3,247) Net Non-Core Expenses (Non-GAAP) 12,362 Core Net Income (Non-GAAP) $ 18,062 Net Non-Interest Expense $ 51,016 Non-Core Expenses: Merger-Related Expenses 15,609 Core Net Non-Interest Expense (Non-GAAP) $ 35,407 Core Earnings Per Share (Non-GAAP) $ 0.97 Core Return on Average Assets (Non-GAAP) 1.33% Core Efficiency Ratio (Non-GAAP) 58.83% * Quarterly ratios have been annualized. Net Income and Net Non-Interest Expense adjusted for non-core expenses. Non-core expenses include merger-related expenses, which are related to the announced acquisition of Adirondack Bancorp, Inc. EPS, efficiency ratio, and ROA are presented on an adjusted basis to reflect these exclusions. In the third quarter of 2026, Arrow issued approximately 1.98 million shares of common stock. These are non-GAAP financial measures, which Arrow believes provides investors with information that is useful in understanding its financial performance.
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