GREEN ARROW FINANCIAL LLC

balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account balance. Vesting - Participants are immediately vested in their 401(k) contributions plus actual earnings thereon. Participant Loans - The Plan provides that participants may borrow up to five loans from their fund accounts; a minimum of $ 1,000 up to a maximum of $ 50,000 or 50 % of their vested account balances, whichever is less. The loans are secured by the balance in the participant’s account and bear interest at rates which are commensurate with local prevailing rates for loans of a similar nature. All loans must be repaid within five years . Principal and interest is paid ratably through bi-weekly payroll deductions. Payment of Benefits - On

l - The Plan provides a salary reduction arrangement which includes both pre-tax regular 401(k) salary reductions and after-tax Roth 401(k) salary reductions. The Plan includes an automatic enrollment provision with a 3 % automatic deferral for newly eligible employees. The Plan covers all employees regardless of age or service who work for Arrow Financial Corporation (the “Company” or “Plan Sponsor”) and its banking subsidiary Arrow Bank National Association (the “Bank”). The Plan also covers all employees of Upstate Agency, LLC who is a subsidiary of Arrow Bank National Association. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. Contributions - Each year, employees who elect to be participants under the 401(k) Plan may contribu

ontributions: Participants, net 2,206,221 Participant rollovers 527,118 Total Contributions 2,733,339 Total Additions 8,514,482 Deductions: Benefits paid to participants 3,530,000 Administrative expenses 13,180 Total Deductions 3,543,180 Net Increase in Assets Available for Benefits 4,971,302 Net Assets Available for Benefits: Beginning of Year 40,181,134 End of Year $ 45,152,436 See accompanying notes to financial statements. 5 ARROW FINANCIAL CORPORATION PROFIT SHARING 401(K) PLAN NOTES TO FINANCIAL STATEMENTS Note 1. Description of the Plan The following description of Arrow Financial Corporation Profit Sharing 401(k) Plan (the “Plan”) provides only general information. Participants and other readers of these financial statements should refer to the Plan document for a more complete des