250 Glen Street

Glens Falls, NY 12801

NasdaqGS® - AROW Website: www.arrowfinancial.com

Contact: Timothy C. Badger

Tel: (518) 745-1000 Ext 306

Fax: (518) 761-6741

TO: All Media
Date: January 25, 2012

Arrow Financial Corporation Declares Cash Dividend

The Board of Directors of Arrow Financial Corporation (NasdaqGS® - AROW) on January 25,
2012 declared a quarterly cash dividend of $.25 per share payable March 15, 2012 to shareholders of record March 2, 2012. This represents an increase of 3% over the cash dividend paid in the first quarter
of 2011, as a result of the September 29, 2011 3% stock dividend.
Arrow Financial Corporation is a multi-bank holding company headquartered in Glens Falls, NY serving the financial needs of northeastern New York. The Company is the parent of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company. Other subsidiaries include North Country Investment Advisers, Inc., three property and casualty insurance agencies: Loomis & LaPann, Inc.; McPhillips Insurance Agency which is a division of Glens Falls National Insurance Agencies, LLC; Upstate Agency, LLC, and Capital Financial Group, Inc. an insurance agency specializing in the sale and servicing of group health plans.

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Wednesday, January 25, 2012 Arrow Financial Corporation Declares Cash Dividend