Arrow Financial announced a definitive merger agreement to acquire Adirondack Bancorp, the holding company of Adirondack Bank. The deal values Adirondack at approximately $89.1 million, based on an exchange ratio of 1.8610 Arrow shares per Adirondack share plus $18.72 in cash per share, using Arrow’s closing price of $34.43 on February 25, 2026.
The transaction will expand Arrow’s branch network to 58 locations across northeastern New York, adding 19 Adirondack branches in Oneida, Herkimer, Franklin, Essex and Clinton counties and a loan production office in Onondaga County. Pro‑forma, the combined company will have $5.4 billion in assets, $4.8 billion in deposits and $4.1 billion in gross loans, strengthening Arrow’s regional presence and diversifying its loan portfolio.
Arrow’s president and CEO, David S. DeMarco, said the merger aligns with the company’s strategy to grow its footprint in high‑quality markets while leveraging its wealth‑management and insurance services. The deal is expected to close by the end of the second quarter of 2026 after regulatory approvals and shareholder consent.
Financial advisors estimate the acquisition will deliver earnings accretion of roughly 18 % in 2027, a 20 % internal rate of return, and a tangible book‑value‑per‑share earn‑back period of 2.9 years. The transaction will broaden Arrow’s customer base for fee‑income businesses and enhance its competitive position in the regional banking sector.
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