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AROW

Arrow Financial Corporation

AROW

Arrow Financial Corporation • NASDAQ
$30.15 ▼ -1.12% (-0.34)
Market Cap $495.74 M
52w High $33.46
52w Low $22.72
Dividend Yield 1.14%
P/E 14.64
Volume 20.75K
Outstanding Shares 16.44M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $62.314M ▲ $25.433M ▼ $12.825M ▲ 20.581% ▲ $0.78 ▲ $18.11M ▲
Q2-2025 $59.182M ▲ $25.652M ▼ $10.805M ▲ 18.257% ▲ $0.65 ▲ $15.309M ▲
Q1-2025 $58.205M ▲ $26.045M ▲ $6.31M ▲ 10.841% ▲ $0.38 ▲ $9.338M ▲
Q4-2024 $55.128M ▼ $25.838M ▲ $4.47M ▼ 8.108% ▼ $0.27 ▼ $6.575M ▼
Q3-2024 $57.576M $24.1M $8.975M 15.588% $0.54 $12.901M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $921.344M ▲ $4.587B ▲ $4.169B ▲ $417.687M ▲
Q2-2025 $716.126M ▼ $4.415B ▼ $4.006B ▼ $408.506M ▲
Q1-2025 $747.19M ▲ $4.449B ▲ $4.044B ▲ $404.409M ▲
Q4-2024 $617.657M ▼ $4.306B ▼ $3.905B ▼ $400.901M ▲
Q3-2024 $777.155M $4.411B $4.018B $393.311M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $12.825M ▲ $15.023M ▲ $-49.681M ▼ $163.647M ▲ $128.989M ▲ $14.284M ▲
Q2-2025 $10.805M ▲ $10.278M ▲ $6.564M ▲ $-49.84M ▼ $-32.998M ▼ $8.276M ▼
Q1-2025 $6.31M ▲ $10.07M ▲ $5.083M ▲ $131.747M ▲ $146.9M ▲ $8.796M ▲
Q4-2024 $4.47M ▼ $5.625M ▼ $-90.123M ▼ $-101.044M ▼ $-185.542M ▼ $4.112M ▼
Q3-2024 $8.975M $9.416M $32.702M $97.772M $139.89M $8.051M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Deposit Account
Deposit Account
 $10.00M ▲$0 ▼$0 ▲$0 ▲
Fiduciary and Trust
Fiduciary and Trust
 $10.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has climbed steadily over the past several years, showing that the core banking and fee businesses are still growing. Profitability, however, has come off its earlier peak. Earnings are clearly lower than they were a few years ago, which likely reflects margin pressure from the interest‑rate environment and higher operating costs. Even so, Arrow remains consistently profitable, just with thinner cushions. The story here is: slow and steady revenue growth, but tighter margins and more modest earnings than in the recent past.

Balance Sheet

Balance Sheet The balance sheet looks conservative and gradually expanding. Total assets have grown at a measured pace, and shareholder equity has been building over time, which points to retained strength and disciplined risk taking. Cash levels are lower than during the unusually liquid pandemic period but appear more normalized now. Debt is relatively modest and has been edging down, suggesting limited reliance on wholesale borrowing. Overall, Arrow’s financial foundation appears solid, but, as with any regional bank, long‑term health hinges on the quality of its loan book and the stability of its deposit base.

Cash Flow

Cash Flow Arrow has consistently generated positive cash from its operations, though the amounts have moved around from year to year. Free cash flow has remained positive, helped by very modest spending on physical investments and technology. That indicates a disciplined approach to outlays and an ability to fund growth and shareholder returns largely from internal resources. As with most banks, cash flows can be noisy because of loan and deposit movements, so the key takeaway is the pattern of recurring, if not spectacular, cash generation rather than any single year’s figure.

Competitive Edge

Competitive Edge Arrow operates as a classic community‑focused regional bank, with deep roots in its local markets in upstate New York. Its strengths lie in long‑standing customer relationships, local decision‑making, and a reputation for conservative management. The addition of insurance and wealth management services broadens its role as a financial partner and deepens customer ties. On the flip side, the bank’s footprint is geographically concentrated, leaving it exposed to the health of its specific region, and it competes directly with much larger banks and digital‑only players that can spend heavily on technology and marketing.

Innovation and R&D

Innovation and R&D Like most banks, Arrow doesn’t do traditional laboratory R&D, but it has been investing meaningfully in technology and process innovation. The partnership with a modern cloud banking platform has streamlined lending and account opening, improving speed and convenience for customers. The use of up‑to‑date cloud and software tools signals a willingness to modernize rather than rely on legacy systems. The planned consolidation of its brands into “Arrow Bank” is another strategic step, aimed at simplifying operations and sharpening its market identity. Execution risk is real—integrating systems and cultures is never trivial—but success could translate into better efficiency, a stronger brand, and more scalable digital offerings.

Summary

Arrow Financial comes across as a steady, conservatively run regional bank that has been layering modern technology onto a traditional community‑bank foundation. The financials show a combination of gradual revenue growth, compressed but still solid profitability, a conservative balance sheet, and consistent, if variable, cash generation. Its competitive edge is rooted in local relationships, a cautious risk profile, and a broader service mix that includes insurance and wealth management. The main areas to watch going forward are how it navigates interest‑rate and credit cycles, how well it protects and grows its deposit base, and how smoothly it executes the brand unification and ongoing digital investments. Together, these factors will shape whether Arrow can turn its regional and technological strategy into durable, long‑term strength.