Arrow Financial, the parent company of Arrow Bank National Association, announced that it has entered into a definitive agreement to acquire Adirondack Bancorp, the parent company of Adirondack Bank, in a transaction valued at approximately $89.1 million.
Under the terms of the agreement, Adirondack will merge with and into Arrow, extending Arrow’s eight-county footprint further into the Adirondack region and the Mohawk Valley, including Oneida, Herkimer and Franklin counties, while strengthening its presence in Essex and Clinton counties. Based on financial results as of December 31, 2025, the combined company is expected to have pro-forma total assets of $5.4 billion, total deposits of $4.8 billion and total gross loans of $4.1 billion, including the estimated impact of purchase accounting adjustments.
Established in 1898, Adirondack operates 19 branch locations across Oneida, Herkimer, Franklin, Essex and Clinton counties, along with a loan production office in Onondaga County. As of December 31, 2025, Adirondack reported total assets of $942 million, total deposits of $848 million and total loans of $624 million.
Following the close of the transaction, Arrow is expected to operate 58 offices across upstate New York, offering a full range of banking, wealth management and insurance services. Arrow, headquartered in Glens Falls, New York, provides banking, insurance and wealth management services from Plattsburgh to Albany through Arrow Bank National Association and its insurance subsidiary, Upstate Agency, LLC. The company is celebrating its 175th anniversary throughout 2026.
Adirondack President and CEO Rocco F. Arcuri Sr. will remain with the combined organization as Regional President and will join the Arrow Board of Directors.
Transaction terms provide that each outstanding share of Adirondack common stock will be converted into 1.8610 shares of Arrow common stock plus $18.72 in cash. Based on Arrow’s closing stock price of $34.43 on February 25, 2026, the implied per-share consideration is $82.79. The transaction is expected to close by the end of the second quarter of 2026, subject to regulatory approvals, Adirondack shareholder approval and other customary closing conditions.
Arrow expects the transaction to be financially attractive, with projected 2027 earnings per share accretion of approximately 18%, an internal rate of return of approximately 20% and a tangible book value per share earn-back period of 2.9 years. On a pro-forma basis at closing, the combined company is expected to maintain an allowance coverage ratio of over 1.00%, tangible common equity of approximately 8% and total risk-based capital of approximately 14%.
Hovde Group, LLC is serving as financial advisor to Arrow and provided a fairness opinion, with Spierer, Woodward, Corbalis & Goldberg serving as legal advisor. Keefe, Bruyette & Woods, a Stifel company, is serving as financial advisor to Adirondack and provided a fairness opinion, with Luse Gorman serving as legal advisor.
KEY QUOTES
“Arrow Bank and Adirondack Bank are two deeply rooted and culturally aligned community banks that share a long-standing commitment to building strong relationships, understanding the important role we play in local economic growth and community support. As our company celebrates its 175th anniversary, this strategic acquisition shows Arrow’s commitment to accelerating our growth and expanding our market presence. Bringing together these two institutions allows us to complement Adirondack’s current product offerings with our wealth management and insurance services and deliver meaningful value for our shareholders.”
David S. DeMarco, President and CEO, Arrow Financial Corporation
“In Arrow, we have found a partner that shares our own culture and values and, like Adirondack, has a history of providing excellent customer service while supporting the communities it serves. Aligning our two community banks will create a more robust organization equipped for the future while benefitting our customers who will have the local support they expect with access to more products, services and locations. I’m excited to continue with Arrow to further align our mission and help ensure a smooth transition for all involved.”
Rocco F. Arcuri Sr., President and CEO, Adirondack Bancorp, Inc.
