Arrow Bank Integrates Skene Valley Agency into Upstate Insurance

Arrow Bank of Glens Falls is finalizing the acquisition of Skene Valley Agency, a Washington County insurer. The deal will integrate Skene Valley into Upstate Agency Insurance, Arrow’s in-house insurance unit. This move extends the bank’s insurance footprint into a new county while leveraging existing infrastructure in Warren, Saratoga, Franklin, and Essex counties.

The transaction follows Arrow’s July 1 closure of its largest acquisition to date, the purchase of Adirondack Bank. That merger increased Arrow’s total assets to $5.4 billion and expanded its branch network to 57 locations across northeastern New York. The bank used $74 million in low-yield investments and cash from Adirondack to offset $125 million in debt, according to its SEC filing.

Acquisition expands regional insurance coverage

Skene Valley Agency, founded in 2002, operates from Granville with satellite offices in Whitehall and Cambridge. President John Hoagland stated that selling to a larger institution aligns with his goal to combine local expertise with broader resources. The acquisition allows Upstate Agency to formalize its presence in Washington County, a market where it previously had limited direct operations.

Upstate Agency Insurance, based in South Glens Falls, has operated for 50 years. It provides personal, commercial, and group employee benefit insurance. Arrow Bank CEO David DeMarco described the move as a strategic growth opportunity to deepen the agency’s market presence. The deal is expected to close by the end of the third quarter, with terms undisclosed in the bank’s release.

Post-merger balance sheet adjustments

Arrow Financial Corp., the holding company for Arrow Bank, reported the Adirondack Bank merger boosted its asset base significantly. The bank’s quarterly report filed with the U.S. Securities and Exchange Commission detailed how $74 million in low-yield investments from Adirondack were utilized. These funds, alongside cash reserves, were applied to reduce $125 million in debt, improving the consolidated balance sheet.

The Adirondack acquisition expanded Arrow’s geographic reach into the Mohawk Valley, including Oneida, Herkimer, and Franklin counties. It also strengthened its branch network in Clinton and Essex counties. Arrow’s branches now extend into Albany County. The stock of Arrow Financial Corp. trades on the Nasdaq exchange under the symbol AROW.

Strategic rationale for combined entities

Arrow Bank framed the Skene Valley acquisition as a continuation of its merger and acquisition strategy. The bank aims to offer personalized insurance solutions and build long-term client relationships. By combining Skene Valley’s local market knowledge with Upstate’s resources, Arrow intends to enhance service capabilities in Washington County. The integration supports Arrow’s broader goal of providing diverse financial needs within its expanded footprint.

According to GN stocks/banks reporting, the move reflects a trend of regional banks consolidating insurance operations to capture more value from existing customer relationships. Arrow’s leadership emphasized that the alignment of company missions facilitates a smoother transition. The expected closing at the end of the third quarter will mark the formal consolidation of these insurance operations under a single management structure.