Arrow is a two-bank holding company headquartered in Glens Falls, New York.
Our banking subsidiaries are Glens Falls National Bank and Trust Company (Glens
Falls National) whose main office is located in Glens Falls, New York, and Saratoga
National Bank and Trust Company (Saratoga National) whose main office is located
in Saratoga Springs, New York. Active subsidiaries of Glens Falls National include
Capital Financial Group, Inc. (an insurance agency specializing in selling and
servicing group health care policies and life insurance), Upstate Agency, LLC
(a property and casualty insurance agency), Glens Falls National Insurance Agencies,
LLC (a property and casualty insurance agency - currently doing business under
the name of McPhillips Insurance Agency), North Country Investment Advisers,
Inc. (a registered investment adviser that provides investment advice to our
proprietary mutual funds) and Arrow Properties, Inc. (a real estate investment
trust, or REIT). Our holding company also owns directly two subsidiary business
trusts, organized in 2003 and 2004 to issue trust preferred securities (TRUPs),
which are still outstanding.
Our holding company, Arrow Financial Corporation, a New York corporation, was
incorporated on March 21, 1983 and is registered as a bank holding company within
the meaning of the Bank Holding Company Act of 1956. Arrow owns two nationally
chartered banks in New York (Glens Falls National and Saratoga National), and
through such banks indirectly owns various non-bank subsidiaries, including
three insurance agencies, a registered investment adviser and a REIT.
We offer a full range of commercial and consumer banking and financial products.
Our deposit base consists of deposits derived principally from the communities
we serve. We target our lending activities to consumers and small and mid-sized
companies in our immediate geographic areas. Through our banks trust operations,
we provide retirement planning, trust and estate administration services for
individuals, and pension, profit-sharing and employee benefit plan administration
for corporations.
Arrow engages in a wide range of lending activities, including commercial and
industrial lending primarily to small and mid-sized companies; mortgage lending
for residential and commercial properties; and consumer installment and home
equity financing. We also maintain an active indirect lending program through
our sponsorship of automobile dealer programs under which we purchase dealer
paper, primarily from dealers that meet pre-established specifications. From
time to time we sell a portion of our residential real estate loan originations
into the secondary market, primarily to the Federal Home Loan Mortgage Corporation
("Freddie Mac") as well as a limited number of other financial institutions
and governmental agencies. Normally, we retain the servicing rights on mortgage
loans originated and sold by us into the secondary markets, subject to our periodic
determinations on the continuing profitability of such activity.
Generally, we continue to implement lending strategies and policies that are
intended to protect the quality of the loan portfolio, including strong underwriting
and collateral control procedures and credit review systems. Loans are placed
on nonaccrual status either due to the delinquency status of principal and/or
interest or a judgment by management that the full repayment of principal and
interest is unlikely. Home equity lines of credit, secured by real property,
are systematically placed on nonaccrual status when 120 days past due, and residential
real estate loans when 150 days past due. Commercial and commercial real estate
loans are evaluated on a loan-by-loan basis and are placed on nonaccrual status
when 90 days past due if the full collection of principal and interest is uncertain.
(See Part II, Item 7.C.II.c. "Risk Elements.") Subsequent cash payments
on loans classified as nonaccrual may be applied all to principal, although
income in some cases may be recognized on a cash basis.
1.97%