Arrow Financial Corporation
- Open
- 41.63
- Day high
- 41.63
- Day low
- 40.93
- Prev close
- 41.56
- Volume
- 71K
- Mkt cap
- $682M
- P/E (TTM)
- 13.3
- EPS (TTM)
- $3.10
- P/B
- 1.6
- P/S
- 2.8
- Yield
- 2.86%
- Per share
- $1.18
- ▼Insiders net selling -$159K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Arrow Financial Corporation (AROW) is a Financial Services company listed on NASDAQ. The stock is up 53% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Arrow Financial Corporation (AROW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AROW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.79 | $0.85 | +7.6% | $45M | +2.2% |
| Mar 6, 2026 | — | $0.85 | — | $63M | — |
| Oct 30, 2025 | $0.72 | $0.77 | +6.9% | $43M | +2.8% |
| Jul 24, 2025 | $0.72 | $0.70 | -2.8% | $40M | -2.1% |
| May 1, 2025 | $0.44 | $0.38 | -13.6% | $39M | -1.8% |
| Jan 30, 2025 | $0.57 | $0.47 | -17.5% | $34M | -13.4% |
| Oct 31, 2024 | $0.53 | $0.53 | +0.0% | $37M | +1.6% |
| Jul 25, 2024 | $0.54 | $0.52 | -3.7% | $35M | +0.9% |
| Apr 30, 2024 | $0.47 | $0.45 | -4.3% | $34M | -1.1% |
| Feb 1, 2024 | $0.47 | $0.46 | -2.1% | $33M | -0.6% |
| Jul 17, 2023 | $0.66 | $0.50 | -23.9% | $35M | -3.9% |
| Oct 27, 2022 | $0.68 | $0.74 | +8.8% | $39M | +5.2% |
AROW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 26, 2026 | O'Conor Raymond Fdirector | Tax | 874 | $40.36 |
| Jun 26, 2026 | O'Conor Raymond Fdirector | Option | 1,126 | $31.34 |
| Jun 23, 2026 | Behan Markdirector | Tax | 923 | $38.80 |
| Jun 23, 2026 | Behan Markdirector | Option | 1,061 | $33.78 |
| Jun 22, 2026 | Behan Markdirector | Sell | 4,110 | $38.59 |
| May 21, 2026 | Morris Philip Cdirector | Option | 386 | $31.47 |
| May 13, 2026 | Morris Philip Cdirector | Option | 546 | $27.04 |
| Feb 4, 2026 | Morris Philip Cdirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | Miller Elizabethdirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | Jahnel Darrindirector | Grant | 69 | $32.43 |
| Feb 4, 2026 | Read Colin Ldirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | Duffy Kristine Ddirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | Behan Markdirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | KRUCZLNICKI DAVID Gdirector | Grant | 818 | $32.43 |
| Feb 4, 2026 | CHAMPION GREGORY Jdirector | Grant | 818 | $32.43 |
Source: AROW SEC Form 4 filings, latest Jun 26, 2026. For informational purposes only — not investment advice.
See the full AROW insider & 13F page →Arrow Financial Corporation company profile
Overview
Arrow Financial Corporation (NASDAQ:AROW) is a regional bank holding company founded in 1851 and headquartered in Glens Falls, New York. The company has evolved from its 19th-century origins into a modern community banking institution serving the northeastern region of New York State. Arrow Financial operates through 38 branch banking offices across Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, providing a comprehensive range of commercial and consumer banking services to local communities and businesses.
Business
Arrow Financial Corporation operates as a traditional community bank holding company in the regional banking sector. The banking industry serves as a financial intermediary, accepting deposits from customers and lending those funds to borrowers while earning profit from the interest rate spread between what they pay depositors and what they charge borrowers. The company's core banking services include deposit products such as demand deposits (checking accounts), interest-bearing checking accounts, savings deposits, and various time deposits including certificates of deposit. These products allow customers to safely store their money while earning interest, and provide the bank with funds to lend. Arrow's lending portfolio encompasses several key areas. Commercial lending includes term loans, time notes, and lines of credit for businesses, along with commercial real estate loans that finance property purchases, refinancing, expansions, and improvements. The bank also provides commercial construction and land development loans for real estate projects. Consumer lending services include installment loans for personal expenditures, personal lines of credit, overdraft protection, automobile loans, residential real estate loans, and home equity products that allow homeowners to borrow against their property value. Beyond traditional banking, Arrow offers wealth management services including retirement planning, trust and estate administration for individuals, and pension and employee benefit plan administration for corporations. The company also provides insurance agency services covering group health care policies, life insurance, and property and casualty insurance products. Additionally, Arrow offers investment advisory services to proprietary mutual funds and maintains a real estate investment trust. The company also operates an indirect lending program and sells residential real estate loan originations into the secondary market, which helps manage risk and generate fee income.
Revenue model
Arrow Financial generates revenue through multiple streams typical of community banking operations. The primary revenue source is net interest income, which represents the difference between interest earned on loans and investments and interest paid on deposits and borrowed funds. This spread-based model means the bank profits when it can lend money at higher rates than it pays to depositors. Fee-based income constitutes another significant revenue stream, including loan origination fees, account maintenance fees, overdraft fees, and transaction fees. The bank's wealth management division generates fees from trust and estate administration services, retirement planning, and investment advisory services. Insurance agency operations produce commission income from selling various insurance products. The company's customers include individual consumers seeking personal banking services, small to medium-sized businesses requiring commercial banking solutions, and institutional clients needing specialized services like employee benefit plan administration. Arrow's geographic focus on northeastern New York creates a concentrated customer base within its market area. Several factors influence Arrow's profitability margins. Interest rate environment significantly impacts net interest margins - rising rates can improve profitability if loan rates increase faster than deposit costs, while falling rates may compress margins. Credit quality affects profitability through loan loss provisions, with economic downturns potentially increasing defaults and reducing earnings. Competition from larger regional banks, credit unions, and fintech companies can pressure both deposit rates and loan pricing. Regulatory compliance costs represent ongoing expenses that can impact margins, while operational efficiency through technology investments and branch optimization affects the cost structure. Local economic conditions in the bank's service area directly influence loan demand and credit quality.
Competitive moat
Arrow Financial's competitive moat is relatively modest, typical of smaller community banks. The company's primary advantages stem from local market knowledge and relationships built over more than 170 years of operation in northeastern New York. This deep community presence allows for personalized service and relationship-based banking that larger institutions may struggle to replicate. The bank benefits from deposit franchise stability in its local markets, where customers often maintain long-term relationships with community banks due to convenience and personal service. However, this moat is not particularly strong given the commoditized nature of basic banking services and the increasing competition from digital-first banks offering higher deposit rates and more convenient services. Regulatory barriers provide some protection, as banking requires significant capital and regulatory approval, limiting new entrants. However, this protection is weakening as fintech companies partner with chartered banks to offer competitive services without full regulatory burden. The company faces significant competitive threats from multiple directions. Larger regional and national banks can offer more competitive rates, broader product suites, and superior technology platforms. Credit unions often provide better rates due to their tax-advantaged status. Digital banks and fintech companies are increasingly capturing deposits with higher rates and superior user experiences, while online lenders compete aggressively in the loan market. Mortgage companies and specialty lenders can often offer more competitive rates and faster processing for specific loan products. Arrow's moat is further challenged by the increasing commoditization of banking services and customers' growing comfort with digital-only relationships, particularly among younger demographics. The bank's small size also limits its ability to invest in technology and compete on features with larger institutions.
Risks & safety
Arrow Financial demonstrates a moderate margin of safety with some areas of concern typical of smaller regional banks. • Solvency appears stable with manageable debt levels and adequate capital ratios, though the bank faces typical interest rate and credit risks inherent to banking operations. • Cash position: $301.4 million in cash and short-term investments as of Q1 2025, providing reasonable liquidity buffer. • Debt levels: Debt-to-equity ratio of 8.3% indicates conservative leverage, though this excludes customer deposits which represent the primary funding source. • Profitability trends: Net income of $29.7 million for FY 2024, down from $48.8 million in FY 2022, showing earnings volatility. • Valuation metrics: Trading at P/E ratio of 17.4x and P/B ratio of 1.08x, suggesting reasonable but not compelling valuation for a regional bank. • Return metrics: ROE of 1.6% in Q1 2025 is concerningly low for a bank, indicating challenges in generating adequate returns on shareholder equity. • Other considerations: The bank's concentrated geographic footprint creates regional economic dependency risk, while rising interest rates could pressure net interest margins if deposit costs increase faster than loan yields.
Recent development
Based on the available financial data, Arrow Financial has experienced significant earnings volatility over recent years, with net income declining from $48.8 million in 2022 to $29.7 million in 2024. This represents a notable 39% decrease in profitability over the two-year period, suggesting the bank has faced challenges adapting to changing market conditions. The company's return on equity has deteriorated substantially, falling from 13.8% in 2022 to 7.4% in 2024, and further declining to just 1.6% in Q1 2025. This trend indicates significant pressure on the bank's ability to generate returns for shareholders, likely reflecting the impact of interest rate changes and competitive pressures in the banking sector. Revenue growth has been more positive, increasing from $160.5 million in 2022 to $223.1 million in 2024, suggesting the bank has been able to grow its business despite profitability challenges. However, the substantial gap between revenue growth and profit decline indicates rising operational costs or increased provisions for loan losses. The bank's balance sheet has grown modestly, with total assets increasing from $4.0 billion in 2022 to $4.3 billion in 2024. Cash and short-term investments have fluctuated significantly, from $64.7 million in 2022 to $154.5 million in 2024, reflecting changing liquidity management strategies in response to market conditions. Without access to recent earnings call transcripts, specific strategic initiatives and management commentary on future direction are not available, limiting insight into the company's planned responses to current challenges.
AROW company profile · for informational purposes only — not investment advice.
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