The acquisition of Adirondack Bancorp is the primary catalyst, with OCC approval already received. Monitor for remaining regulatory approvals and shareholder votes. The strong 1Q26 NIM expansion (3.48%) and improving efficiency ratio (58.1% ex-MRE) support near-term earnings momentum. Watch for the lower expected full-year 2026 tax rate as a further EPS tailwind.
Price Chart
Executive Summary
Arrow Financial Corporation held its 2026 Annual Meeting of Shareholders on June 3, 2026, and furnished the investor presentation via an 8-K (Items 7.01, 9.01). The presentation highlights strong 2025 financial results (EPS of $2.65, ROA of 1.00%, record NIM of 3.19%) and positive 1Q26 momentum (EPS of $0.82, NIM expanding to 3.48%, ROA of 1.23%). The key strategic event is the pending acquisition of Adirondack Bancorp, Inc. (~$950M in assets, 19 branches), which has received OCC approval and would create a combined ~$5.4B asset institution.
Key Facts
- 2025 EPS of $2.65, ROA of 1.00%, record FTE NIM of 3.19%, ROE of 10.66%
- Tangible book value per share of $24.71, up 10.3% YoY
- 1Q26 net income of $13.5M, or $0.82 EPS; core EPS of $0.85 excluding ~$800k merger-related expenses
- 1Q26 FTE NIM expanded to 3.48% from 3.25% in 4Q25
- 1Q26 ROA of 1.23% (1.29% core); annualized net charge-offs of 10bps
- Deposits grew to $3.714B in 1Q26 from $3.639B at 4Q25
- Announced acquisition of Adirondack Bancorp, Inc. (~$950M in assets, 19 branches); received OCC approval
- Combined pro forma total assets of ~$5.4B, deposits of ~$4.8B, gross loans of ~$4.1B as of 12/31/2025
- Expecting lower effective tax rate for full year 2026 due to tax planning strategies
Financial Impact
Pending acquisition of Adirondack Bancorp (~$950M assets) will increase Arrow's total assets by ~$1B to ~$5.4B; combined deposits of ~$4.8B and gross loans of ~$4.1B
Risk Factors
- Merger integration risk with Adirondack Bancorp; pre-tax merger-related expenses of ~$800k in 1Q26
- Potential dilution from share issuance to fund the acquisition
- Interest rate sensitivity; NIM expansion dependent on loan/deposit repricing and reinvestment rates on AFS securities
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000717538-26-000081 |
| Document: arow-20260603.htm | 0000717538-26-000081 |
| Document: 0000717538-26-000081-index-headers.html | 0000717538-26-000081 |
| Document: 0000717538-26-000081-index.html | 0000717538-26-000081 |
| Document: 0000717538-26-000081.txt | 0000717538-26-000081 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 8-K | $39.07 $38.12 | ▼ −2.43% | ▼ −1.93% | $37.79 (−3.28%) |
Jul 23, 2026 10w ago | 8-K | $39.14 $39.94 | ▼ −2.04% | ▼ −1.57% | $37.79 (+3.45%) |
Jul 1, 2026 13w ago | 8-K | $42.07 $40.82 | ▼ −2.97% | ▼ −3.23% | $37.79 (−10.17%) |
Jun 3, 2026 17w ago | 8-K | $35.78 $38.07 | ▲ +6.40% | ▲ +10.22% | $37.79 (+5.62%) |
May 8, 2026 21w ago | EFFECT | $36.84 $35.73 | ▼ −3.02% | ▼ −4.49% | $37.79 (+2.57%) |
Apr 30, 2026 22w ago | 8-K | $36.55 $36.97 | ▲ +1.16% | ▼ −0.57% | $37.79 (+3.40%) |
Apr 23, 2026 23w ago | DEFA14A | $36.24 $36.06 | ▼ −0.49% | ▼ −1.97% | $37.79 (+4.28%) |
Mar 27, 2026 27w ago | 10-K/A | $32.75 $34.63 | ▲ +5.75% | ▲ +1.89% | $37.79 (+15.40%) |
Feb 26, 2026 31w ago | 8-K | $34.02 $32.99 | ▼ −3.02% | ▼ −1.89% | $37.79 (+11.09%) |
US Market Status
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