Arrow Financial Corporation to Acquire Upstate Agency, Inc.

Arrow Financial Corporation (NasdaqGS® - AROW): Thomas L. Hoy, Chairman, President and Chief Executive Officer of Arrow Financial Corporation (“Arrow”) announced today that Glens Falls National Bank and Trust Company, Arrow’s lead banking subsidiary, has acquired Upstate Agency, Inc., a property and casualty insurance agency headquartered in Chestertown, New York with seven offices located in Northern New York. Upstate Agency will operate as a wholly-owned subsidiary of Glens Falls National Bank.

Upstate Agency is a full service property and casualty insurance agency owned and operated by Mark J. Carpenter. Mr. Carpenter will continue to manage the agency which offers personal and commercial lines of property and casualty insurance. Mr. Hoy stated, “We are very pleased to have Mr. Carpenter and the professionals of Upstate Agency join Arrow and the Glens Falls National Bank team.” This transaction will complement Arrow’s other property and casualty insurance operation, Loomis & LaPann, Inc., as well as its health insurance agency, Capital Financial Group, both of which are located in the Glens Falls Area. Mr. Hoy added, “We are confident the acquisition will benefit our customers and our company. Upstate’s offices across the North Country will provide additional convenience and new opportunities in our existing banking communities.”

Mr. Carpenter indicated, “We are extremely pleased to have the opportunity to join forces with Arrow, Glens Falls National Bank and their other insurance operations. This affiliation will allow us to add to the services we provide."

Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, New York with 35 banking locations in northeastern New York. Arrow Financial Corporation is the parent company of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisors, Inc., Capital Financial Group, Inc., and Loomis and LaPann, Inc.