Form 4: Arrow Financial CEO Boosts Stake with Restricted Stock

Arrow Financial Corp's President & CEO, David S. DeMarco, acquired 34,982 shares of common stock through restricted stock awards and ESPP purchases.

Summary

• David S. DeMarco, President & CEO of Arrow Financial Corp (AROW), acquired a total of 34,982 shares of common stock.
• One restricted stock award involved 11,084 shares at a price of $32.43 per share, vesting 25% annually on January 28, 2027, 2028, 2029, and 2030.
• A second restricted stock award involved 23,898 shares at a price of $32.43 per share, vesting 33% annually on January 28, 2027, 2028, and 2029.
• An additional 36 shares were acquired via Employee Stock Purchase Plan (ESPP) purchases since December 24, 2025.
• Following these transactions, Mr. DeMarco directly beneficially owns 91,189 shares of common stock and indirectly owns 3,035 shares via a 401(k) plan.
• The transactions were made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, as the CEO's increased stake, even through restricted stock, demonstrates confidence in the company's long-term value and aligns executive incentives with shareholder interests.

Positives

• The President & CEO significantly increased his beneficial ownership in the company, signaling strong confidence in its future prospects.
• The restricted stock awards, with their multi-year vesting schedules, align management's long-term interests directly with shareholder value creation.
• The use of a Rule 10b5-1(c) plan indicates a pre-arranged, systematic approach to equity compensation and ownership.

Negatives

• The reported transaction date of January 28, 2026, is in the future relative to the filing date of February 2, 2026, which is an unusual reporting anomaly for a Form 4.

Future Outlook

The future outlook includes the vesting of restricted stock awards, with shares vesting annually on January 28th from 2027 through 2030, aligning the CEO's compensation with future company performance.

Industry Context

StockSavvy.ai notes that insider buying, particularly by a CEO, is often viewed positively in the financial services sector as it can signal management's belief in the company's stability and growth prospects, especially for regional banks like Arrow Financial Corp.

Comparison to Industry Standards

• While specific benchmarks for CEO restricted stock grants vary widely by company size and industry, the multi-year vesting schedule is a standard practice in executive compensation across the financial industry, similar to structures seen at peers like Community Bank System (CBU) or Glens Falls National Bank (GLFN).

Stakeholder Impact

• Shareholders: Potential positive impact due to increased alignment of CEO's interests with long-term company performance and shareholder value.
• Employees: The ESPP purchases indicate a broader employee participation in company ownership, fostering a sense of shared success.

Next Steps

• Annual vesting of the restricted stock awards will occur on January 28, 2027, 2028, 2029, and 2030.

Key Dates

Recommendation

The significant increase in beneficial ownership by the President & CEO, David S. DeMarco, through restricted stock awards and ESPP, signals strong insider confidence in Arrow Financial Corp's future performance. This alignment of management's interests with shareholders, coupled with the long-term vesting schedule, suggests a positive outlook for the company's strategic direction and value creation. While these are not open market purchases, the substantial stake increase is a bullish indicator for long-term investors.

Keywords

Arrow Financial Corp, AROW, David S. DeMarco, Insider Trading, Restricted Stock, CEO Stock Acquisition, Beneficial Ownership, Form 4, Financial Services, Banking