Arrow Financial Corp closes purchase of Adirondack Bancorp

Arrow Financial Corporation (NASDAQGS: AROW) has completed its acquisition of Adirondack Bancorp, Inc., marking the culmination of a strategic merger announced in February 2026. The transaction received regulatory approval from the Office of the Comptroller of the Currency (OCC) in June 2026 and closed on July 1, 2026, following shareholder and regulatory approvals.

The merger expands Arrow’s geographic footprint in upstate New York, adding 19 branches across Oneida, Herkimer, Franklin, Essex, and Clinton counties, as well as a loan production office in Onondaga County. With the acquisition, Arrow now operates 58 offices in the region, offering a broad range of financial products and services. The combined entity is projected to have total assets of $5.4 billion, total deposits of $4.8 billion, and total gross loans of $4.1 billion.

Under the terms of the merger agreement, Adirondack shareholders received a combination of stock and cash. Each share of Adirondack common stock was converted into 1.8610 shares of Arrow common stock plus $18.72 in cash, based on a closing stock price of $34.43 for Arrow shares as of February 25, 2026. The aggregate transaction value was approximately $89.1 million.

Rocco F. Arcuri Sr., former CEO of Adirondack, will serve as Regional President and join Arrow’s Board of Directors. He emphasized the alignment of values and cultures between the two institutions and expressed confidence in a smooth integration process.

Financially, the merger is expected to deliver an 18% earnings per share (EPS) accretion in 2027, with a strong internal rate of return of approximately 20% and a Tangible Book Value earn-back period of 2.9 years. The combined company is expected to maintain a strong balance sheet, with a Tangible Common Equity ratio of approximately 8% and Total Risk-Based-Capital of approximately 14% at closing.

The merger is part of Arrow’s broader strategy to expand its market presence and enhance shareholder value. As Arrow celebrates its 175th anniversary in 2026, the acquisition underscores its commitment to growth and community banking.