Arrow Financial Corporation to Acquire Loomis & LaPann, Inc.

Arrow Financial Corporation (NasdaqGS® - AROW): Thomas L. Hoy, Chairman, President and Chief Executive Officer of Arrow Financial Corporation (“Arrow”) announced today that Arrow and Glens Falls National Bank and Trust Company, Arrow’s lead banking subsidiary, have signed a definitive agreement to acquire Loomis & LaPann, Inc., a property and casualty insurance agency operating in the Greater Glens Falls area. Loomis & LaPann will operate as a wholly-owned subsidiary of Glens Falls National Bank. Arrow expects to close the transaction on April 1, 2010. The closing of the acquisition is subject to customary conditions.

Loomis & LaPann is a full service property and casualty insurance agency owned and operated by Donald F. Lilley and Gregory J. Joly. Messrs. Lilley and Joly will continue to manage the agency for Arrow upon completion of the merger. Mr. Hoy stated, “We are very pleased to have Messrs. Lilley and Joly and the professionals of Loomis & LaPann join Arrow and the Glens Falls National Bank team. This transaction affiliates two companies which are rich in the history of Glens Falls; Glens Falls National Bank and Trust Company has been headquartered in the City of Glens Falls since 1851 and Loomis & LaPann has been providing insurance from downtown Glens Falls since 1852.” Mr. Hoy added, “We are confident the acquisition will benefit our customers and our company. We plan to add a second corporate office in South Glens Falls for our newly acquired Loomis & LaPann insurance agency to provide additional convenience and new opportunities in our communities.”

Mr. Lilley indicated, “We are extremely pleased to have the opportunity to join forces with Arrow and Glens Falls National Bank. This affiliation will allow us to add to the services we provide. Quality customer service has been the benchmark for both Glens Falls National Bank and Loomis & LaPann for over 150 years.”

Glens Falls National Bank currently owns another insurance agency, Capital Financial Group, Inc., which sells and services group health and life insurance and will continue to operate as a separate agency after the acquisition of Loomis & LaPann.