Arrow Financial Corporation (AROW) Stock

Arrow Financial Corporation (AROW) is a Financials stock trading at $38.35 (as of 2026-08-20), with a market capitalization of $710.38M and a trailing P/E of 13.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Arrow Financial Corporation is a bank holding company that offers commercial and consumer banking, including deposit products and a range of lending such as commercial, commercial real estate, consumer installment, and residential real estate loans. It also participates in an indirect lending program, sells certain residential loan originations, and provides retirement planning, trust, and estate administration services.

Understand Arrow Financial Corporation: how it makes money

Arrow Financial Corporation is a bank holding company that provides commercial and consumer banking, taking deposits and making commercial and real estate loans, and earning through the spread between loan yields and deposit costs.

This quarter highlights the core profit engine as the spread between Average Loan Yield (5.26%) and Cost of Deposits (1.98%), supported or pressured by credit performance (Net Charge-Offs to Average Loans 0.1%).

Business quality (Solid): Key operating read-throughs are efficiency (Efficiency Ratio 59.89%) and credit quality (Net Charge-Offs to Average Loans 0.1%, Non-Performing Loans Excluding CRE Participation 0.12%), but there is no reportable segment revenue breakdown provided here.

Valuation: At 13× earnings, AROW trades in line with the Banking average (13×). Note: one-time items can distort reported P/E.

Bull case

  • Efficiency: Efficiency Ratio is 59.89%, which helps gauge how much of operating income is absorbed by operating costs.
  • Credit quality ex-CRE participation: Non-Performing Loans Excluding CRE Participation is 0.12%, a specific credit metric investors can track.
  • Funding and lending scale: Deposit Balances (Excluding Brokered Certificates of Deposit) are 3.71 USD_B and Gross Loans are 3.3 USD_B, with a Loan-to-Deposit Ratio of 85.7%.

Bear case

  • Interest rate and funding mix sensitivity: Deposits Subject to Repricing is 2.0 USD_B, and deposit repricing can change the relationship between Average Loan Yield and Cost of Deposits.
  • Credit loss risk: Annualized Charge-Offs are 0.1% and Net Charge-Offs to Average Loans are 0.1%, indicating ongoing credit loss activity that could worsen.
Valuation — source: SEC EDGAR (first-party)
Price$38.35
Market Cap$710.38M
P/E Ratio13.9
Price / Book1.59
Price / Sales3.77
FCF Yield6.3%
DCF Value (model)$49.89
DCF Upside vs Price30.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$184.07M
Net Margin23.9%
Revenue Growth (YoY)3.5%
EPS Growth (YoY)1.5%
FCF Growth (YoY)40.0%
Valuation vs Sector & Industry
Stock P/E13.9
Sector P/E (Financials)15.1
Industry P/E (Banking)12.9
vs Sector-8.5%
vs Industry7.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderArrow Financial Corp ($63.07M)
Institutional Holders Tracked10
Company
SectorFinancials
IndustryBanking
CEODavid S. DeMarco
Employees580
CountryUS
IPO Date1980-09-18

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  • Peoples Financial Services Corp. (PFIS)
  • Carter Bankshares, Inc. (CARE)
  • Southern California Bancorp (BCAL)
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AROW earnings history · AROW institutional & insider holders · AROW KPIs & operating metrics · AROW financials · AROW investor presentations & press releases · AROW SEC filings · AROW peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.