XML 29 R2.htm IDEA: XBRL DOCUMENT v3.26.1
Pay vs Performance Disclosure
 4 Months Ended 8 Months Ended 12 Months Ended
May 12, 2023
Dec. 31, 2023
Dec. 31, 2025
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Pay vs Performance Disclosure              
Pay vs Performance Disclosure, Table    
Year-end value of $100 invested on December 31, 2020 in:
YearSummary Compensation Table Total for PEO (Murphy)Compensation Actually Paid to PEO (Murphy)Summary Compensation Table Total for PEO (DeMarco)Compensation Actually Paid to PEO (DeMarco)Average Summary Compensation Table Total for Non-PEO NEOsAverage Compensation Actually Paid to Non-PEO NEOsArrow Financial CorporationKBW Regional Banking Index (7)Net
Income
(in millions)		Earnings Per Share
(1)(1)(2)(3)(4)(1)(1)(2)(3)(4)(5)(2)(3)(4)(5)(6)
2025N/AN/A$1,572,406$1,549,275$628,535$627,359$139.22$152.71$43.95$2.65
2024N/AN/A$1,233,686$1,230,215$614,197$614,702$122.21$143.39$29.70$1.77
2023$1,662,004$692,271$943,532$811,730$541,482$480,734$114.09$126.67$30.10$1.77
2022$1,742,204$1,922,576N/AN/A$584,089$562,080$127.87$127.17$48.80$2.87
2021$2,146,089$2,013,535N/AN/A$557,166$601,047$124.97$136.64$49.90$2.93
        
Company Selected Measure Name     Earnings per Share        
Named Executive Officers, Footnote     The PEO in each reporting years 2021 through 2023 was Thomas J. Murphy, who was an executive officer until May 12, 2023. The PEO in the reporting years 2024 through 2025 was David S. DeMarco, our current PEO. Non-PEO NEOs reflect the average Summary Compensation Table total compensation and average CAP for Penko Ivanov, Andrew J. Wise, Marc J. Yrsha, Michael J. Jacobs and Brooke M. Pancoe in the 2025 reporting year, Penko Ivanov, David D. Kaiser, Andrew J. Wise and Marc J. Yrsha in the 2024 reporting year, Penko Ivanov, David D. Kaiser and Andrew J. Wise in the 2023 reporting year, and Edward J. Campanella, David S. DeMarco, David D. Kaiser and Andrew J. Wise in the 2021-2022 reporting years.        
PEO Total Compensation Amount     $ 1,572,406 $ 1,233,686   $ 1,742,204 $ 2,146,089
PEO Actually Paid Compensation Amount     $ 1,549,275 1,230,215   1,922,576 2,013,535
Adjustment To PEO Compensation, Footnote     Subtractions from, and additions to, total compensation in the Summary Compensation table by year to calculate CAP include:
20252024202320222021
PEO (DeMarco)Average Non-CEO NEOsPEO (DeMarco)Average Non-CEO NEOsPEO (Murphy)PEO (DeMarco)Average of Other Non-PEO NEOsPEO (Murphy)Average of Other Non-PEO NEOsPEO (Murphy)Average of Other Non-PEO NEOs
Total Compensation from Summary Compensation Table$1,572,406 $628,535 $1,233,686 $614,197 $1,662,004 $943,532 $541,482 $1,742,204 $584,089 $2,146,089 $557,166 
Adjustments for Pension
Adjustment Summary Compensation Table Pension$(171,248)$(35,841)$(96,736)$(23,300)$(1,031,417)$(151,195)$(51,964)$(470,237)$(52,579)$(908,942)$(46,099)
Amount added for current year service cost$97,104 $18,867 $87,095 $22,704 $530,040 $65,438 $24,772 $595,215 $33,255 $571,465 $31,163 
Total Adjustments for Pension$(74,144)$(16,974)$(9,641)$(595)$(501,377)$(85,757)$(27,192)$124,978 $(19,324)$(337,477)$(14,936)
Adjustments for Equity Awards
Adjustment for grant date values in the Summary Compensation Table$(243,265)$(73,416)$(103,926)$(45,909)$(242,704)$(40,100)$(26,733)$(226,485)$(38,251)$(187,798)$(24,251)
Year-end fair value of unvested awards granted in the current year$276,257 $83,373 $118,027 $52,137 $— $32,551 $21,701 $230,583 $32,940 $279,970 $54,023 
Year-over-year difference of year-end fair values and vest date fair values for awards granted in prior years$9,997 $3,763 $(5,821)$(3,475)$— $(35,652)$(25,412)$38,559 $18,756 $106,511 $29,766 
Fair values at vest date for awards granted and vested in current year$— $— $— $— $99,539 $— $— $— $— $— $— 
Difference in fair values between prior year-end fair values and vest date fair values for awards granted in prior years$(6,097)$(2,436)$(4,372)$(2,652)$(159,079)$(2,844)$(3,112)$(986)$1,098 $(6,543)$(721)
Forfeitures during current year equal to prior year-end fair value$— $— $— $— $(169,874)$— $— $— $(17,228)$— $— 
Dividends or dividend equivalents not otherwise included in total compensation$14,121 $4,514 $2,261 $999 $3,762 $— $— $13,723 $— $12,783 $— 
Total Adjustments for Equity Awards$51,013 $15,798 $6,169 $1,101 $(468,356)$(46,045)$(33,557)$55,394 $(2,685)$204,923 $58,817 
Compensation Actually Paid (as calculated)$1,549,275 $627,359 $1,230,215 $614,702 $692,271 $811,730 $480,734 $1,922,576 $562,080 $2,013,535 $601,047 
        
Non-PEO NEO Average Total Compensation Amount     $ 628,535 614,197 $ 541,482 584,089 557,166
Non-PEO NEO Average Compensation Actually Paid Amount     $ 627,359 614,702 480,734 562,080 601,047
Adjustment to Non-PEO NEO Compensation Footnote     Subtractions from, and additions to, total compensation in the Summary Compensation table by year to calculate CAP include:
20252024202320222021
PEO (DeMarco)Average Non-CEO NEOsPEO (DeMarco)Average Non-CEO NEOsPEO (Murphy)PEO (DeMarco)Average of Other Non-PEO NEOsPEO (Murphy)Average of Other Non-PEO NEOsPEO (Murphy)Average of Other Non-PEO NEOs
Total Compensation from Summary Compensation Table$1,572,406 $628,535 $1,233,686 $614,197 $1,662,004 $943,532 $541,482 $1,742,204 $584,089 $2,146,089 $557,166 
Adjustments for Pension
Adjustment Summary Compensation Table Pension$(171,248)$(35,841)$(96,736)$(23,300)$(1,031,417)$(151,195)$(51,964)$(470,237)$(52,579)$(908,942)$(46,099)
Amount added for current year service cost$97,104 $18,867 $87,095 $22,704 $530,040 $65,438 $24,772 $595,215 $33,255 $571,465 $31,163 
Total Adjustments for Pension$(74,144)$(16,974)$(9,641)$(595)$(501,377)$(85,757)$(27,192)$124,978 $(19,324)$(337,477)$(14,936)
Adjustments for Equity Awards
Adjustment for grant date values in the Summary Compensation Table$(243,265)$(73,416)$(103,926)$(45,909)$(242,704)$(40,100)$(26,733)$(226,485)$(38,251)$(187,798)$(24,251)
Year-end fair value of unvested awards granted in the current year$276,257 $83,373 $118,027 $52,137 $— $32,551 $21,701 $230,583 $32,940 $279,970 $54,023 
Year-over-year difference of year-end fair values and vest date fair values for awards granted in prior years$9,997 $3,763 $(5,821)$(3,475)$— $(35,652)$(25,412)$38,559 $18,756 $106,511 $29,766 
Fair values at vest date for awards granted and vested in current year$— $— $— $— $99,539 $— $— $— $— $— $— 
Difference in fair values between prior year-end fair values and vest date fair values for awards granted in prior years$(6,097)$(2,436)$(4,372)$(2,652)$(159,079)$(2,844)$(3,112)$(986)$1,098 $(6,543)$(721)
Forfeitures during current year equal to prior year-end fair value$— $— $— $— $(169,874)$— $— $— $(17,228)$— $— 
Dividends or dividend equivalents not otherwise included in total compensation$14,121 $4,514 $2,261 $999 $3,762 $— $— $13,723 $— $12,783 $— 
Total Adjustments for Equity Awards$51,013 $15,798 $6,169 $1,101 $(468,356)$(46,045)$(33,557)$55,394 $(2,685)$204,923 $58,817 
Compensation Actually Paid (as calculated)$1,549,275 $627,359 $1,230,215 $614,702 $692,271 $811,730 $480,734 $1,922,576 $562,080 $2,013,535 $601,047 
        
Compensation Actually Paid vs. Total Shareholder Return    
CAP and Cumulative TSR / Cumulative TSR of the Peer Group


9895604692606
        
Compensation Actually Paid vs. Net Income    
CAP and Company Net Income as Reported
6047313994944
        
Compensation Actually Paid vs. Company Selected Measure    
CAP and Company Selected Measure, Earnings per Share as Reported
9895604692610
        
Total Shareholder Return Vs Peer Group    
CAP and Cumulative TSR / Cumulative TSR of the Peer Group


9895604692606
        
Total Shareholder Return Amount     $ 139.22 122.21 114.09 127.87 124.97
Peer Group Total Shareholder Return Amount     152.71 143.39 126.67 127.17 136.64
Net Income (Loss)     $ 43,950,000 $ 29,700,000 $ 30,100,000 $ 48,800,000 $ 49,900,000
Company Selected Measure Amount     2.65 1.77 1.77 2.87 2.93
PEO Name Thomas J. Murphy David S. DeMarco David S. DeMarco David S. DeMarco   Thomas J. Murphy Thomas J. Murphy
Additional 402(v) Disclosure     The following table illustrates the valuation assumptions used for stock option awards included as part of CAP:
•Expected life of each stock option is based on the "simplified method" using an average of the remaining vest and remaining term, as of the vest/fiscal year end ("FYE").
•Number of options and exercise price are valued as of FYE 2025 point-in-time.
•Risk-free-rate is based on the Treasury Constant Maturity rate closest to the remaining expected life as of the vest/FYE.
•Historical volatility is based on daily price history for each expected life (years) prior to each vest/FYE. Closing prices provided by S&P Capital IQ are adjusted for dividends and splits.
For Stock Options Vesting in
20252024202320222021
Expected volatility
32% - 34%
31% - 40%
35% - 40%
36% - 39%
36% - 41%
Expected dividend yield
4.0% - 4.2%
4.0% - 4.3%
3.3% - 3.3%
3.1% - 3.1%
3.4% - 3.6%
Expected term, in years
3.0 - 4.0
3.0 - 4.5
3.0 - 4.5
3.0 - 4.5
3.0 - 4.5
Risk-free interest rate
4.2% - 4.3%
3.8% - 4.2%
3.6% - 4.0%
1.4% - 1.7%
0.2% - 0.5%
The following table illustrates the valuation assumptions as of the vesting date for restricted stock awards that vested in each of 2025, 2024, 2023, 2022 and 2021 (note that no awards vested in 2024):
Weighted Average Fair Value
20252024202320222021
Weighted Average Fair Value at vesting$25.96N/A$22.56$34.35$27.61
Earnings per Share is defined in the Compensation Discussion and Analysis section of this Proxy Statement.
(7) The Company updated its TSR comparator group in 2025 to the KBW Regional Banking Index from the ABA NASDAQ Community Bank Index used in 2024. Historical figures have been updated to reflect the KBW Regional Banking Index.
        
Option Awards, Expected Volatility, Minimum     32.00% 31.00% 35.00% 36.00% 36.00%
Option Awards, Expected Volatility, Maximum     34.00% 40.00% 40.00% 39.00% 41.00%
Option Awards, Expected Dividend Yield, Minimum     4.00% 4.00% 3.30% 3.10% 3.40%
Option Awards, Expected Dividend Yield, Maximum     4.20% 4.30% 3.30% 3.10% 3.60%
Option Awards, Expected Term, Minimum     3 years 3 years 3 years 3 years 3 years
Option Awards, Expected Term, Maximum     4 years 4 years 6 months 4 years 6 months 4 years 6 months 4 years 6 months
Option Awards, Risk-Free Interest Rate, Minimum     4.20% 3.80% 3.60% 1.40% 0.20%
Option Awards, Risk-Free Interest Rate, Maximum     4.30% 4.20% 4.00% 1.70% 0.50%
Restricted Share Awards, Weighted Average Fair Value | $ / shares     $ 25.96   $ 22.56 $ 34.35 $ 27.61
David S. DeMarco [Member]              
Pay vs Performance Disclosure              
PEO Total Compensation Amount     $ 1,572,406 $ 1,233,686 $ 943,532    
PEO Actually Paid Compensation Amount     1,549,275 1,230,215 811,730    
Thomas J. Murphy [Member]              
Pay vs Performance Disclosure              
PEO Total Compensation Amount         1,662,004 $ 1,742,204 $ 2,146,089
PEO Actually Paid Compensation Amount         692,271 1,922,576 2,013,535
PEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (171,248) (96,736)   (470,237) (908,942)
PEO | Pension Adjustments Service Cost              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     97,104 87,095   595,215 571,465
PEO | Equity Awards Adjustments              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     51,013 6,169   55,394 204,923
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (243,265) (103,926)   (226,485) (187,798)
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     276,257 118,027   230,583 279,970
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     9,997 (5,821)   38,559 106,511
PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     0 0   0 0
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (6,097) (4,372)   (986) (6,543)
PEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     0 0   0 0
PEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     14,121 2,261   13,723 12,783
PEO | Pension Adjustments [Member]              
Pay vs Performance Disclosure              
Adjustment to Compensation Amount, Pension     (74,144) (9,641)   124,978 (337,477)
PEO | David S. DeMarco [Member] | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (151,195)    
PEO | David S. DeMarco [Member] | Pension Adjustments Service Cost              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         65,438    
PEO | David S. DeMarco [Member] | Equity Awards Adjustments              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (46,045)    
PEO | David S. DeMarco [Member] | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (40,100)    
PEO | David S. DeMarco [Member] | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         32,551    
PEO | David S. DeMarco [Member] | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (35,652)    
PEO | David S. DeMarco [Member] | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         0    
PEO | David S. DeMarco [Member] | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (2,844)    
PEO | David S. DeMarco [Member] | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         0    
PEO | David S. DeMarco [Member] | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         0    
PEO | David S. DeMarco [Member] | Pension Adjustments [Member]              
Pay vs Performance Disclosure              
Adjustment to Compensation Amount, Pension         (85,757)    
PEO | Thomas J. Murphy [Member] | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (1,031,417)    
PEO | Thomas J. Murphy [Member] | Pension Adjustments Service Cost              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         530,040    
PEO | Thomas J. Murphy [Member] | Equity Awards Adjustments              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (468,356)    
PEO | Thomas J. Murphy [Member] | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (242,704)    
PEO | Thomas J. Murphy [Member] | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         0    
PEO | Thomas J. Murphy [Member] | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         0    
PEO | Thomas J. Murphy [Member] | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         99,539    
PEO | Thomas J. Murphy [Member] | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (159,079)    
PEO | Thomas J. Murphy [Member] | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         (169,874)    
PEO | Thomas J. Murphy [Member] | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount         3,762    
PEO | Thomas J. Murphy [Member] | Pension Adjustments [Member]              
Pay vs Performance Disclosure              
Adjustment to Compensation Amount, Pension         (501,377)    
Non-PEO NEO | Aggregate Change in Present Value of Accumulated Benefit for All Pension Plans Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (35,841) (23,300) (51,964) (52,579) (46,099)
Non-PEO NEO | Pension Adjustments Service Cost              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     18,867 22,704 24,772 33,255 31,163
Non-PEO NEO | Equity Awards Adjustments              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     15,798 1,101 (33,557) (2,685) 58,817
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (73,416) (45,909) (26,733) (38,251) (24,251)
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     83,373 52,137 21,701 32,940 54,023
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     3,763 (3,475) (25,412) 18,756 29,766
Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     0 0 0 0 0
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     (2,436) (2,652) (3,112) 1,098 (721)
Non-PEO NEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     0 0 0 (17,228) 0
Non-PEO NEO | Dividends or Other Earnings Paid on Equity Awards not Otherwise Reflected in Total Compensation for Covered Year              
Pay vs Performance Disclosure              
Adjustment to Compensation, Amount     4,514 999 0 0 0
Non-PEO NEO | Pension Adjustments [Member]              
Pay vs Performance Disclosure              
Adjustment to Compensation Amount, Pension     $ (16,974) $ (595) $ (27,192) $ (19,324) $ (14,936)