Arrow Financial Corporation (AROW): Modelo de negócios Canvas [Jan-2025 Atualizado]

A Arrow Financial Corporation (AROW) surge como uma potência bancária regional dinâmica, posicionando-se estrategicamente através de um modelo de negócios abrangente que combina o banco comunitário tradicional com soluções financeiras digitais de ponta. Ao alavancar sua forte presença no estado de Nova York e abordagem inovadora, o banco cria experiências financeiras personalizadas que integram perfeitamente o serviço local orientado a relacionamentos com plataformas tecnológicas avançadas. Este modelo de modelo de negócios exclusivo revela como o AROW transforma os desafios bancários regionais em oportunidades estratégicas, criando valor para diversos segmentos de clientes, mantendo um compromisso focado a laser com os serviços financeiros centrados na comunidade.

Arrow Financial Corporation (AROW) - Modelo de negócios: Parcerias -chave

Bancos comunitários locais e instituições financeiras

A Arrow Financial Corporation mantém parcerias estratégicas com instituições financeiras locais na região da Capital de Nova York. A partir de 2023, a corporação estabeleceu relações colaborativas com aproximadamente 5-7 redes bancárias regionais.

Instituição parceira	Tipo de parceria	Cobertura geográfica
Glens Falls National Bank	Colaboração bancária regional	Nordeste de Nova York
Banco Nacional de Saratoga	Rede de Serviço Financeiro	Região do Condado de Saratoga

Provedores de serviços de tecnologia para soluções bancárias digitais

A Arrow Financial Corporation colabora com parceiros de tecnologia especializados para aprimorar a infraestrutura bancária digital.

• Jack Henry & Associados: Core Banking Technology Platform
• FISERV: Soluções bancárias digitais
• Temenos: integração de software bancário

Empresas de conformidade regulatória e gerenciamento de riscos

A corporação mantém parcerias críticas com organizações especializadas de conformidade e gerenciamento de riscos.

Parceiro de conformidade	Serviço especializado	Valor anual do contrato
Wolters Kluwer	Monitoramento da conformidade regulatória	$375,000
Grupo de Consultoria ABA	Advogado de gerenciamento de riscos	$250,000

Redes de gestão de patrimônio e investimento

A Arrow Financial Corporation faz parceria com empresas de consultoria de investimentos para expandir os recursos de gerenciamento de patrimônio.

• Raymond James Financial Services
• LPL Financial
• Cambridge Investment Research

Despesas de rede total de parcerias para 2023: US $ 1,2 milhão

Arrow Financial Corporation (AROW) - Modelo de negócios: Atividades -chave

Serviços bancários comerciais e pessoais

A partir de 2023, a Arrow Financial Corporation registrou ativos totais de US $ 2,4 bilhões. O Banco opera 23 agências de serviço completo em todo o estado de Nova York, com foco principal em serviços bancários comerciais e pessoais.

Categoria de serviço bancário	Volume total (2023)	Penetração de mercado
Contas de corrente comercial	US $ 387 milhões	42% de participação de mercado regional
Contas de poupança pessoal	US $ 612 milhões	35% de participação de mercado regional

Empréstimo e gerenciamento de crédito

O portfólio de empréstimos da Arrow Financial Corporation demonstra atividades significativas em vários setores.

• Portfólio de empréstimos totais: US $ 1,86 bilhão
• Volume de empréstimos comerciais: US $ 1,2 bilhão
• Volume de empréstimos ao consumidor: US $ 660 milhões
• Taxa de crescimento de empréstimo líquido: 6,3% em 2023

Investimento e gestão de patrimônio

O banco gerencia US $ 425 milhões Em ativos de gerenciamento de patrimônio a partir do quarto trimestre 2023.

Serviço de investimento	Total de ativos sob gestão	Tamanho médio do portfólio de clientes
Planejamento de aposentadoria	US $ 187 milhões	$342,000
Aviso de riqueza	US $ 238 milhões	$512,000

Desenvolvimento da plataforma bancária digital

Canais bancários digitais processados US $ 742 milhões Nas transações durante 2023.

• Usuários bancários móveis: 48.000
• Transações bancárias online: 1,2 milhão por trimestre
• Investimento de plataforma digital: US $ 3,4 milhões em 2023

Consultoria financeira e avaliação de risco

Divisão de gerenciamento de riscos supervisiona US $ 2,1 bilhões no total de ativos ponderados por risco.

Categoria de avaliação de risco	Exposição total	Taxa de mitigação de risco
Risco de crédito	US $ 1,4 bilhão	92,5% de mitigação
Risco de mercado	US $ 420 milhões	88,3% de mitigação
Risco operacional	US $ 280 milhões	95,1% de mitigação

Arrow Financial Corporation (AROW) - Modelo de negócios: Recursos -chave

Forte Rede Bancária Regional no Estado de Nova York

A partir de 2024, a Arrow Financial Corporation opera 46 escritórios bancários localizados em 10 municípios do estado de Nova York. A rede de agências físicas do banco abrange áreas como condados de Saratoga, Warren, Washington e Clinton.

Cobertura geográfica	Número de ramificações	Condados servidos
Estado de Nova York	46	10

Equipe de gestão financeira experiente

A equipe de liderança é composta por 7 executivos seniores, com uma média de 22 anos de experiência em serviços bancários e de serviços financeiros.

• CEO: James C. Fagan
• CFO: Michael R. Mancini
• Diretor Bancário: Christopher R. Lauran

Infraestrutura de tecnologia bancária digital avançada

A Arrow Financial Corporation investiu US $ 3,2 milhões em infraestrutura de tecnologia bancária digital para 2024, apoiando plataformas bancárias on -line e móveis.

Investimento digital	Quantia	Ano
Infraestrutura de tecnologia	$3,200,000	2024

Banco de dados robusto do cliente

Em 31 de dezembro de 2023, a Arrow Financial Corporation manteve um banco de dados de clientes de 87.450 contas ativas nos segmentos bancários pessoais e comerciais.

Portfólio de produtos financeiros abrangentes

O banco oferece 42 produtos financeiros distintos, incluindo:

• Contas de corrente pessoal
• Soluções de empréstimos para negócios
• Produtos hipotecários
• Serviços de investimento
• Serviços bancários comerciais

Categoria de produto	Número de produtos
Total de produtos financeiros	42

Arrow Financial Corporation (AROW) - Modelo de negócios: proposições de valor

Soluções bancárias personalizadas para comunidades locais

A Arrow Financial Corporation fornece serviços bancários localizados, com foco nas necessidades financeiras específicas da comunidade. A partir do quarto trimestre de 2023, o banco atende 47.382 clientes em 14 locais de filiais nos condados de Saratoga e Washington de Nova York.

Segmento de clientes	Número de clientes	Saldo médio da conta
Bancos pessoais	34,215	$87,623
Pequenas empresas	8,967	$245,410
Bancos comerciais	4,200	$1,342,750

Taxas de juros competitivas e produtos financeiros

Arrow Financial oferece produtos financeiros competitivos com a seguinte estrutura de taxas:

Tipo de produto	Taxa de juro	Comparação de mercado
Conta de poupança pessoal	3.25%	+0,50% acima da média regional
Conta corrente	2.10%	+0,35% acima da média regional
Empréstimo comercial	6.75%	-0,25% abaixo da média regional

Abordagem de atendimento ao cliente orientada por relacionamento

As métricas de retenção de clientes demonstram a eficácia do modelo de serviço da Arrow Financial:

• Taxa de retenção de clientes: 94,3%
• Duração média do relacionamento do cliente: 8,7 anos
• Pontuação de satisfação do cliente: 4,6/5

Experiências bancárias digitais e tradicionais integradas

Adoção bancária digital e estatísticas de uso:

Serviço digital	Porcentagem do usuário	Transações mensais
Mobile Banking	72%	387,456
Bancos online	68%	412,890
Pagamentos digitais	45%	215,670

Tomada de decisão local e suporte focado na comunidade

Investimento comunitário e impacto econômico local:

• Total de investimentos comunitários em 2023: US $ 3,2 milhões
• Empréstimos para pequenas empresas locais: US $ 42,7 milhões
• Subsídios de desenvolvimento comunitário: US $ 678.900

Arrow Financial Corporation (AROW) - Modelo de Negócios: Relacionamentos do Cliente

Atendimento ao cliente personalizado

A Arrow Financial Corporation mantém 18 agências bancárias locais em todo o estado de Nova York. Os representantes do atendimento ao cliente lidaram com 42.567 interações individuais do cliente em 2023.

Canal de serviço	Interações anuais do cliente	Tempo médio de resolução
Suporte no ramo	24,315	22 minutos
Suporte telefônico	12,876	18 minutos
Suporte digital	5,376	12 minutos

Gerenciamento de relacionamento de longo prazo

A taxa de retenção de clientes para a Arrow Financial Corporation foi de 87,3% em 2023, com uma duração média do relacionamento com o cliente de 9,6 anos.

Interações presenciais nas filiais locais

• Rede total de filiais locais: 18 filiais
• Tráfego diário de pedestres diários: 127 clientes
• Filas localizadas em Glens Falls, Queensbury e Regiões A circundantes de Nova York

Canais de comunicação digital

Plataforma digital	Usuários totais	Usuários ativos mensais
Aplicativo bancário móvel	38,542	29,876
Portal bancário online	45,213	36,547

Aconselhamento e apoio financeiro personalizado

A Arrow Financial Corporation forneceu 3.642 sessões de consulta financeira personalizadas em 2023, com uma duração média de consulta de 47 minutos.

Tipo de consulta	Sessões totais	Satisfação média do cliente
Bancos pessoais	1,876	4.7/5
Aviso de investimento	1,124	4.6/5
Consultas de empréstimo	642	4.5/5

Arrow Financial Corporation (AROW) - Modelo de Negócios: Canais

Agências bancárias físicas

A partir de 2024, a Arrow Financial Corporation opera 32 agências bancárias físicas localizadas principalmente no estado de Nova York.

Tipo de localização da filial	Número de ramificações
Locais urbanos	18
Locais suburbanos	14

Plataforma bancária online

A plataforma bancária on -line atende aproximadamente 45.000 usuários de banco digital ativo.

• Os recursos da plataforma incluem gerenciamento de contas
• Serviços de pagamento da conta
• Histórico de transações
• Transferências de fundos

Aplicativo bancário móvel

O aplicativo bancário móvel da Arrow Financial foi baixado 22.500 vezes com 15.750 usuários ativos mensais.

Métricas de aplicativos móveis	2024 dados
Downloads totais	22,500
Usuários ativos mensais	15,750

Centros de atendimento ao cliente

Arrow Financial mantém dois centros de atendimento ao cliente que lidam com aproximadamente 38.000 interações com os clientes mensalmente.

• Tempo médio de manuseio de chamadas: 6,2 minutos
• Representantes de atendimento ao cliente: 65 funcionários totais
• Suporte multilíngue disponível

Rede ATM

A corporação opera 47 locais atm em sua região de serviço.

Tipo de localização do ATM	Número de caixas eletrônicos
Caixas eletrônicos de propriedade de bancos	37
ATMs de rede de parceiros	10

Arrow Financial Corporation (AROW) - Modelo de negócios: segmentos de clientes

Pequenas e médias empresas

A partir de 2024, a Arrow Financial Corporation atende aproximadamente 1.250 empresas pequenas e médias nas Falls Glens, na região de Nova York. A carteira total de empréstimos comerciais para essas empresas está avaliada em US $ 187,3 milhões.

Segmento de negócios	Número de clientes	Valor total do empréstimo
Negócios de varejo	425	US $ 62,4 milhões
Serviços profissionais	375	US $ 53,9 milhões
Fabricação	250	US $ 71,0 milhões

Clientes bancários individuais locais

A Arrow Financial Corporation mantém 42.750 clientes bancários individuais em sua área de serviço. O saldo médio da conta de depósito é de US $ 24.750.

• Contas de corrente: 28.500 clientes
• Contas de poupança: 14.250 clientes

Clientes bancários de varejo

O segmento bancário de varejo representa 67% da base total de clientes do banco, com 28.725 clientes ativos de varejo. O total de ativos bancários de varejo é de US $ 456,2 milhões.

Clientes de empréstimos comerciais

O portfólio de empréstimos comerciais inclui 1.750 clientes comerciais ativos com empréstimos comerciais totais no valor de US $ 312,6 milhões. O tamanho médio do empréstimo comercial é de US $ 178.400.

Tipo de empréstimo	Número de empréstimos	Valor total do empréstimo
Empréstimos a termos comerciais	875	US $ 156,3 milhões
Linha de crédito	625	US $ 98,7 milhões
Financiamento de equipamentos	250	US $ 57,6 milhões

Clientes de gerenciamento de patrimônio

O segmento de gerenciamento de patrimônio atende a 1.850 clientes de alta rede com ativos totais sob gerenciamento de US $ 624,5 milhões. O valor médio do portfólio de clientes é de US $ 337.600.

• Contas de investimento individuais: 1.250 clientes
• Serviços de planejamento de aposentadoria: 600 clientes

Arrow Financial Corporation (AROW) - Modelo de negócios: estrutura de custos

Despesas operacionais de ramificação

A partir de 2023, os relatórios financeiros, as despesas operacionais da filial da Arrow Financial Corporation totalizavam US $ 4,7 milhões anualmente. Isso inclui:

• Manutenção de aluguel e instalação: US $ 1,2 milhão
• Utilitários: US $ 380.000
• Suprimentos de escritório: US $ 210.000
• Segurança da filial: US $ 275.000

Categoria de despesa	Custo anual
Aluguel	$1,200,000
Utilitários	$380,000
Suprimentos	$210,000
Segurança	$275,000

Manutenção de infraestrutura de tecnologia

Os custos de infraestrutura de tecnologia para AROW em 2023 foram de US $ 3,6 milhões, incluindo:

• Atualizações de hardware: US $ 1,1 milhão
• Licenciamento de software: US $ 850.000
• Sistemas de segurança cibernética: US $ 750.000
• Suporte e manutenção de TI: US $ 900.000

Salários e benefícios dos funcionários

A compensação total dos funcionários em 2023 foi de US $ 22,4 milhões, dividida da seguinte maneira:

Categoria de funcionários	Remuneração anual
Compensação executiva	$4,800,000
Salários da equipe bancária	$14,600,000
Benefícios dos funcionários	$3,000,000

Custos de conformidade regulatória

As despesas de conformidade regulatória em 2023 totalizaram US $ 2,3 milhões, incluindo:

• Consultoria legal: US $ 750.000
• Software de conformidade: US $ 450.000
• Auditoria e relatórios: US $ 600.000
• Programas de treinamento: US $ 500.000

Despesas de marketing e aquisição de clientes

As despesas de marketing para 2023 totalizaram US $ 1,9 milhão:

Canal de marketing	Gasto anual
Marketing digital	$850,000
Publicidade tradicional	$550,000
Aquisição de clientes	$500,000

Arrow Financial Corporation (AROW) - Modelo de negócios: fluxos de receita

Receita de juros de empréstimos

Para o ano fiscal de 2023, a Arrow Financial Corporation registrou receita total de juros de US $ 67,3 milhões. A repartição da receita de juros do empréstimo é a seguinte:

Categoria de empréstimo	Receita de juros ($)
Empréstimos comerciais	38,450,000
Empréstimos hipotecários residenciais	22,750,000
Empréstimos ao consumidor	6,100,000

Taxas de serviço bancário

As taxas de serviço bancário geraram US $ 12,5 milhões em receita para 2023:

• Taxas de manutenção de conta: US $ 4,2 milhões
• Taxas de cheque especial: US $ 3,7 milhões
• Taxas de transação ATM: US $ 2,8 milhões
• Taxas de transferência de fio: US $ 1,8 milhão

Receita de gerenciamento de investimentos

As receitas de gestão de investimentos em 2023 totalizaram US $ 15,6 milhões, com a seguinte distribuição:

Serviço de investimento	Receita ($)
Taxas de gerenciamento de ativos	9,750,000
Gerenciamento de portfólio	5,850,000

Taxas de transação

As taxas de transação para 2023 totalizaram US $ 8,3 milhões:

• Taxas de transação do cartão de crédito: US $ 4,6 milhões
• Taxas de transação do cartão de débito: US $ 3,7 milhões

Comissões de gerenciamento de patrimônio

As comissões de gestão de patrimônio para 2023 atingiram US $ 6,2 milhões, com a seguinte quebra:

Fonte da comissão	Valor ($)
Serviços de planejamento financeiro	3,100,000
Comissões de consultoria de investimentos	2,150,000
Taxas de planejamento da aposentadoria	950,000

Arrow Financial Corporation (AROW) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Arrow Financial Corporation, and honestly, it boils down to being a comprehensive, yet local, financial partner. The primary value is the full-service community bank offering, which means you aren't just getting a checking account; you're getting a suite of integrated services.

This offering spans across:

• Banking services, including online and mobile access.
• Insurance services through its subsidiaries.
• Investment and wealth management services.

The commitment to local presence is a key differentiator. Arrow Financial Corporation emphasizes local, personalized service with decision-making rooted in the region. This is underscored by the January 2025 rebranding of its banking arms to a single name, Arrow Bank, to increase market share in the Capital Region, while maintaining its physical footprint. You still have access to the same people, as the leadership team remained unchanged post-rebrand. The company operates 38 branch locations stretching from Albany up to the Canadian border, supported by a staff of 550 employees as of early 2025.

For you as a stakeholder, the value proposition includes tangible evidence of financial stability, maintaining a well-capitalized regulatory status. This is not just talk; the numbers back it up. As of the third quarter of 2025, Arrow Financial Corporation's Common Equity Tier 1 Capital Ratio stood at 13.07%. This figure remains well above the regulatory minimums required for a well-capitalized institution.

While the core strength is regional, the bank provides access to a broad ATM network outside the primary footprint, though specific ATM network size isn't detailed, the physical presence is anchored by its 38 branch locations.

Finally, the value proposition is cemented by core profitability demonstrated by a Q3 2025 ROA of 1.16%. This performance reflects strong operational execution following the July 2025 unification of its banking subsidiaries. Here's a quick look at some of the key financial metrics driving that profitability for the third quarter of 2025:

Metric	Amount/Value (Q3 2025)
Net Income	$12.8 million
Diluted Earnings Per Share (EPS)	$0.77
Net Interest Income	USD 34.13 million
FTE Net Interest Margin (NIM)	3.24%
Total Assets (as of 9/30/2025)	Approximately $4.4 billion
Total Loan Portfolio (as of 6/30/2025)	~ USD 3.4 billion
Quarterly Cash Dividend Declared	USD 0.29 per share

The efficiency also improved, with the efficiency ratio noted at 59.56% for the third quarter of 2025. This focus on operational leverage, especially after the system conversion, helps translate revenue growth into shareholder value.

Arrow Financial Corporation (AROW) - Canvas Business Model: Customer Relationships

You're looking at how Arrow Financial Corporation builds and maintains its connection with clients, which is central to its community bank model, especially after the major brand unification in early 2025. The core philosophy here is definitely about long-term relationships, not quick transactions.

Relationship-based banking centered on long-term client trust

Arrow Financial Corporation emphasizes that its value proposition rests on its people, a point consistently reinforced by customers when asked why they bank with them. This focus is now channeled through a single, unified brand, Arrow Bank National Association, which replaced Glens Falls National Bank & Trust Company and Saratoga National Bank & Trust Company starting January 1, 2025. This consolidation aims to enhance operational efficiency while keeping the local, personalized service hallmark intact.

The stability of the relationship is underscored by consistent shareholder returns:

• The Board declared a 3rd Quarter 2025 cash dividend of $0.29 per share, an increase of 3.6% from the prior quarter.
• Return on average assets reached 1.00% in the second quarter of 2025.
• The company maintained a 'well-capitalized' status as of June 30, 2025, with a Common Equity Tier 1 Capital Ratio of 12.73%.

The entire organization, with over 550 employees, operates 38 branch locations across northeastern New York, stretching from Albany to the Canadian border.

Dedicated corporate banking team expansion in the Capital Region

Arrow Financial Corporation views the Capital Region as a primary target for growth following the brand unification. The strategy involves strengthening the corporate banking presence to capture greater market share in this area. This initiative was highlighted as a key strategic move in the first quarter of 2025.

The expansion focus includes:

• Targeting a very small existing market share in the Capital Region for significant growth.
• Seeing opportunities to expand services into Rensselaer and Columbia counties.
• Exploring growth into the Hudson Valley and potentially western Vermont and Massachusetts.

The company's overall asset size as of early 2025 was approximately $4.4 billion.

Community engagement and corporate social responsibility initiatives

Community involvement is deeply embedded in Arrow Financial Corporation's culture, translating trust into local action. This commitment is demonstrated through direct financial support and employee volunteerism across its eight-county footprint.

Here are the concrete figures from their 2024 Giving in Action report:

Metric	Amount/Value
Total Charitable Donations (2024)	$776,051
Total Employee Contributions (2024)	$108,703
Total Volunteer Hours Donated (2024)	11,902 hours
Total Donations Over Past Six Years	More than $3.4 million

The focus of this support includes mental health, financial empowerment, education, and safe/affordable housing initiatives.

Personalized advisory services for wealth management clients

For wealth management clients, the relationship is managed through personalized advisory services, supported by subsidiaries like North Country Investment Advisers, Inc.. The unification into Arrow Bank was intended to enhance the customer experience across all service lines, including wealth management, while maintaining continuity in leadership and service delivery.

The financial results for the third quarter of 2025 show the underlying strength supporting these services:

• Net Income for Q3 2025 was $12.8 million.
• Earnings Per Share (EPS) for Q3 2025 was $0.77.

The commitment to stability and personalized service is the foundation for retaining and growing these advisory relationships.

Arrow Financial Corporation (AROW) - Canvas Business Model: Channels

You're looking at how Arrow Financial Corporation gets its products and services into the hands of its customers across its footprint in northeastern New York. The channel strategy is clearly weighted toward a strong physical presence, even as digital adoption grows.

The core physical channel is Arrow Bank National Association, which operates 38 domestic branch locations across New York State as of late 2025. This network stretches from the Albany area up to Clinton counties, serving markets like Glens Falls, Saratoga, and Plattsburgh. This physical footprint is critical for relationship banking, especially following the January 2025 unification of the former Glens Falls National Bank and Trust Company and Saratoga National Bank & Trust Company under the single Arrow Bank National Association brand.

For everyday transactions, Arrow Financial Corporation heavily promotes its digital channels. You can use their Online Banking portal for account management. Plus, the Mobile App lets you handle key tasks on the go, such as depositing checks, paying bills, transferring funds, and checking account activity using your existing Internet Banking credentials.

Here's a quick look at the scale of the physical and digital infrastructure supporting these channels as of mid-2025:

Channel Metric	Value/Count	As of Date
Arrow Bank Branch Locations	38	November 2025
Total Assets (Arrow Financial Corp)	$4,405,726,000	June 30, 2025
Total Employees (Arrow Family of Companies)	More than 550	Early 2025
Total Loans (Arrow Bank National Association)	$3,390,563,000	June 30, 2025

Cash access is facilitated through the Allpoint ATM Network, meaning customers aren't solely reliant on proprietary machines for withdrawals. This network access extends the reach of the physical channel without requiring Arrow Financial Corporation to staff and maintain every single ATM location itself. It's a smart way to manage convenience costs.

For complex commercial and corporate banking needs, the bank relies on a Direct sales force. While we don't have a headcount, the need for specialized relationship managers is evident from recent announcements, such as the hiring of a Business Banking Relationship Manager and a Commercial Relationship Manager to drive growth in targeted regions. This direct, high-touch approach targets business clients needing commercial loans and corporate services.

The specialized, non-banking subsidiaries utilize their own focused channels, often operating out of the main corporate hub in Glens Falls, New York, or integrated within the bank branches. These include:

• Upstate Agency, LLC: Delivering personal and business insurance, plus group health and employee benefits.
• North Country Investment Advisers, Inc.: Providing wealth management and investment services.
• Arrow Properties, Inc.: Mentioned as a non-bank subsidiary.

The primary ways customers interact with the Arrow Family of Companies are:

• In-person service at 38 Arrow Bank National Association branches.
• Self-service via Online Banking and the Mobile App.
• Cash access through the Allpoint ATM Network.
• Consultative sales via dedicated relationship managers for commercial lending.
• Specialized advisory services delivered through North Country Investment Advisers offices.

If onboarding for new digital services is taking longer than, say, 72 hours, you might see a dip in initial mobile adoption rates. Finance: draft the Q3 2025 digital adoption metrics report by next Tuesday.

Arrow Financial Corporation (AROW) - Canvas Business Model: Customer Segments

You're looking at the core groups Arrow Financial Corporation (AROW) serves across its northeastern New York footprint, especially after the successful unification of its banking subsidiaries into the single Arrow Bank National Association platform in July 2025. Honestly, their customer base is deeply rooted in the local economy, which is key to their conservative, steady-growth model.

The primary lending focus, which is a huge part of their business, shows a clear segmentation of their $3.4 billion total loan portfolio as of June 30, 2025:

Customer Focus Area	Loan Portfolio Segment	Percentage of Total Loans (as of 6/30/2025)	Approximate Dollar Amount (as of 6/30/2025)
Individuals and Families	Residential Real Estate Loans	39.3%	$1.336 billion
SMEs & CRE Investors/Developers	Commercial and Commercial Real Estate Loans (Combined)	28.3%	$0.962 billion
Individuals and Families	Consumer Loans	32.4%	$1.102 billion

Here's the quick math: $3.4 billion total loans multiplied by those percentages gives you those dollar figures. What this estimate hides is the internal split between pure Commercial & Industrial (C&I) loans and the Commercial Real Estate (CRE) portion within that 28.3% bucket, but we know C&I and CRE together form that significant block.

Individuals and families in northeastern New York needing deposit and consumer loans

This group is the bedrock, supported by Arrow Bank National Association's community bank structure. They hold the bulk of the $3.9 billion in total deposits as of June 30, 2025. You see their needs reflected in the consumer lending side, which made up 32.4% of the total loan book.

• Consumer Loans accounted for approximately $1.102 billion of the total loan portfolio on June 30, 2025.
• Deposit balances saw a seasonal dip of $38.8 million from March 31, 2025, to June 30, 2025, largely due to municipal deposit seasonality.
• The company actively manages deposit costs, with the cost of interest-bearing deposits decreasing by 23 basis points in Q1 2025.

Small to mid-sized businesses (SMEs) requiring commercial loans and treasury services

SMEs are served through the combined Commercial and Commercial Real Estate lending category, which represented 28.3% of the total loan portfolio. The bank is executing on strategic growth here, including expanding its Corporate Banking Team in the Capital Region of New York state.

• The combined Commercial and Commercial Real Estate loan balance was approximately $0.962 billion as of June 30, 2025.
• The bank reported year-to-date loan growth of approximately $22 million as of March 31, 2025, indicating continued focus on relationship banking.
• Treasury services are bundled with these commercial relationships, supporting local business operations.

Commercial Real Estate (CRE) investors and developers

This group falls within the 28.3% commercial lending segment, though it has recently been a point of focus due to credit events. You know this segment is active because the bank took a specific reserve in Q1 2025 related to a commercial real estate loan participation.

• A specific reserve of $3.75 million was recognized in Q1 2025 related to a commercial real estate loan participation.
• Nonperforming assets (NPAs) were 0.16% of period-end assets ($7.0 million) as of June 30, 2025, down from 0.44% at March 31, 2025, partly due to the resolution of the CRE issue.
• Loan quality metrics are generally strong outside of that isolated event.

High net worth individuals seeking wealth management and trust services

This segment drives the non-interest income stream, though it experienced some near-term softness. Arrow Bank and its non-bank subsidiaries like Upstate Agency, LLC, handle these specialized needs. You want to watch the fee income trend here.

• Total Non-Interest Income slightly decreased to $7.6 million in Q2 2025 from $7.8 million in Q1 2025.
• This decrease was primarily driven by lower revenue from wealth management services due to weaker overall market performance.
• Trust services are offered through the bank subsidiary, supporting the comprehensive needs of this client base.

Finance: draft 13-week cash view by Friday.

Arrow Financial Corporation (AROW) - Canvas Business Model: Cost Structure

You're looking at the core expenses Arrow Financial Corporation (AROW) faced in the third quarter of 2025, which is key to understanding their operating leverage. For a bank, the cost structure is dominated by funding costs and operating overhead.

The primary funding cost, interest expense on deposits, was reported at $19.5 million in Q3 2025, showing an increase from $19.0 million in Q2 2025, even as the CEO noted deposit costs were stabilizing. This reflects the ongoing repricing of liabilities. That's a big number to manage, especially when rates are volatile.

Operating costs fall under Non-interest Expense. For Q3 2025, the total Non-interest Expense was $25.4 million, down from $25.7 million in the second quarter of 2025. This improved expense control helped push the efficiency ratio to 59.56% for the quarter. That ratio tells you how much it costs to generate a dollar of revenue; lower is better, and they definitely improved that metric. Personnel expenses, which cover salaries and benefits for local staff, are a major component within this total, though the specific dollar amount for personnel alone isn't broken out in the latest reports.

Here's a quick look at the key Q3 2025 cost and efficiency figures:

Cost/Metric Category	Q3 2025 Amount/Ratio
Interest Expense on Deposits	$19.5 million
Total Non-interest Expense	$25.4 million
Efficiency Ratio	59.56%
Provision for Credit Losses	$815K

The Provision for Credit Losses, which is the amount set aside for potential loan losses, was $815K in Q3 2025, up from $594K in the prior quarter due to charge-offs. Still, the overall asset quality metrics, like nonperforming loans at 0.18% of loans, suggest this provision was manageable.

Technology investment is a clear cost driver, especially following the July 2025 system conversion. The unification expenses, which included project management and information technology costs related to that system conversion, were approximately $600 thousand in Q3 2025, down from $1.1 million in Q2 2025. Management indicated they do not expect further expenses related to that unification effort, which is good news for future cost containment. These technology and data processing costs are essential for modern banking operations, so you watch for them to normalize now that the major project is complete.

You can see the major cost buckets that Arrow Financial Corporation is managing:

• Interest expense on deposits: $19.5 million in Q3 2025.
• Total Non-interest Expense: $25.4 million in Q3 2025.
• Unification/IT costs (part of Non-interest Expense): $600 thousand in Q3 2025.
• Provision for credit losses: $815K in Q3 2025.

Finance: draft 13-week cash view by Friday.

Arrow Financial Corporation (AROW) - Canvas Business Model: Revenue Streams

You're looking at how Arrow Financial Corporation actually brings in the money, which, as a seasoned analyst, I can tell you is heavily weighted toward traditional banking fundamentals, even with their wealth and insurance arms. The latest figures from their Q3 2025 performance really highlight where the core strength lies.

The primary engine for Arrow Financial Corporation remains the spread between what they earn on their assets and what they pay on their liabilities. This is the Net Interest Income (NII). For the third quarter of 2025, this figure hit a record $34.13 million. This was a significant jump, showing the benefit of their liability-sensitive balance sheet and continued Net Interest Margin (NIM) expansion, which reached 3.24% FTE in Q3 2025. This NII figure is the number you want to watch closely; it was the key driver behind their EPS beat for the quarter.

Beyond the core lending margin, Non-interest income provides important diversification. For Q3 2025, total net revenue was reported around $42.85 million, which, when subtracting the $34.13 million in NII, implies total non-interest income was approximately $8.72 million for the quarter. This segment saw a quarter-over-quarter improvement of $1.1 million. This growth is explicitly supported by their wealth management division, driven by Assets Under Management (AUM) growth, and increased insurance revenue year-over-year.

To give you a clearer picture of the asset side generating that interest income, we can look at the loan portfolio composition as of the end of Q1 2025, which gives us the structure of the earning assets:

Loan Category	Balance (USD Thousands) - Q1 2025
Residential Real Estate Loans	$1,339,843
Consumer Loans	$1,118,735
Commercial Real Estate Loans	$804,015
Commercial Loans	$154,275
Total Loans	$3,416,868

This portfolio structure is what generates the interest income component of the NII. [cite: 6 from first search]

The remaining revenue sources fall under non-interest income, which includes fees for services rendered. While the precise Q3 2025 breakdown isn't fully detailed in the immediate reports, the components are known to be:

• Wealth management fees from advisory and trust services.
• Insurance commissions from Upstate Agency, LLC, covering property/casualty and life/health lines.
• Service charges on deposit accounts.
• Other bank fees.

For context on the non-interest income sources, in Q3 2024, the non-interest income was $8.1 million, which was attributed to higher wealth management fees and increased insurance commissions following an asset acquisition. [cite: 6 from second search] The Q3 2025 figure of around $8.72 million shows that diversification is working.

The interest expense, which offsets the interest income, was $19.5 million in Q3 2025, up from $19.0 million in Q2 2025. [cite: 3 from first search] That's the cost of funding those loans and securities. Finance: draft the Q4 2025 interest expense forecast by next Tuesday.