Condensed financial information for Arrow Financial Corporation is as follows:



BALANCE SHEETS	December 31,
ASSETS	2012		2011
Interest-Bearing Deposits with Subsidiary Banks	$	1,913	$	2,395
Available-for-Sale Securities	1,148		1,433
Held-to-Maturity Securities	1,000		1,000
Investment in Subsidiaries at Equity	192,985		184,515
Other Assets	5,339		3,915
Total Assets	$	202,385	$	193,258
LIABILITIES
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	$	20,000	$	20,000
Other Liabilities	6,560		6,873
Total Liabilities	26,560		26,873
STOCKHOLDERS’ EQUITY
Total Stockholders’ Equity	175,825		166,385
Total Liabilities and Stockholders’ Equity	$	202,385	$	193,258



STATEMENTS OF INCOME	Years Ended December 31,
Income:	2012		2011		2010
Dividends from Bank Subsidiaries	$	12,700	$	14,450	$	12,400
Interest and Dividends on Investments	123		127		129
Other Income (Including Management Fees)	776		596		720
Net Gains on Securities Transactions	63		17		27
Total Income	13,662		15,190		13,276
Expense:
Interest Expense	692		669		666
Salaries and Employee Benefits	75		92		109
Other Expense	957		820		908
Total Expense	1,724		1,581		1,683
Income Before Income Tax Benefit and Equity
in Undistributed Net Income of Subsidiaries	11,938		13,609		11,593
Income Tax Benefit	575		477		489
Equity in Undistributed Net Income of Subsidiaries	9,666		7,847		9,810
Net Income	$	22,179	$	21,933	$	21,892

The Statement of Changes in Stockholders’ Equity is not reported because it is identical to the Consolidated Statement of Changes in Stockholders’ Equity.



STATEMENTS OF CASH FLOWS	Years Ended December 31,
	2012			2011			2010
Cash Flows from Operating Activities:
Net Income	$	22,179		$	21,933		$	21,892
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Undistributed Net Income of Subsidiaries	(9,666		)	(7,847		)	(9,810		)
Net Gains on the Sale of Securities Available-for-Sale	(63		)	(17		)	(27		)
Shares Issued Under the Directors’ Stock Plan	175			175			149
Stock-Based Compensation Expense	424			354			299
Changes in Other Assets and Other Liabilities	(1,640		)	(165		)	(1,253		)
Net Cash Provided by Operating Activities	11,409			14,433			11,250
Cash Flows from Investing Activities:
Proceeds from the Sale of Securities Available-for-Sale	681			410			270
Purchases of Securities Available-for-Sale	(359		)	(253		)	(373		)
Net Cash Provided by (Used in) Investing Activities	322			157			(103		)
Cash Flows from Financing Activities:
Stock Options Exercised	2,105			1,413			798
Shares Issued Under the Employee Stock Purchase Plan	484			474			475
Treasury Stock Issued for Dividend Reinvestment Plans	1,822			1,796			1,715
Tax Benefit from Exercise of Stock Options	68			51			105
Purchase of Treasury Stock	(4,877		)	(6,039		)	(3,347		)
Cash Dividends Paid	(11,815		)	(11,448		)	(10,997		)
Net Cash Used in Financing Activities	(12,213		)	(13,753		)	(11,251		)
Net (Decrease) Increase in Cash and Cash Equivalents	(482		)	837			(104		)
Cash and Cash Equivalents at Beginning of the Year	2,395			1,558			1,662
Cash and Cash Equivalents at End of the Year	$	1,913		$	2,395		$	1,558
Supplemental Disclosures to Statements of Cash Flow Information:
Interest Paid	$	692		$	669		$	666
Non-cash Investing and Financing Activities:
Shares Issued for Acquisition of Subsidiary	233			5,261			682