Arrow Financial (AROW) CEO David DeMarco Exercises Options, Sells Shares

What Happened

• David S. DeMarco, President & CEO of Arrow Financial Corp (AROW), exercised options to acquire 3,346 shares at an exercise price of $27.04 per share (cost basis $90,476) on August 17, 2026.
• To cover taxes/withholding related to the exercise, 2,596 shares were surrendered/disposed at $39.25 per share (value $101,893, coded F).
• The option/derivative position corresponding to 3,346 shares was reported disposed at $0.00 (this reflects the conversion/settlement of the derivative upon exercise). Net shares received by DeMarco from the transaction: 3,346 − 2,596 = 750 shares. These actions are routine for option exercises and tax withholding.

Key Details

• Transaction date: 2026-08-17; Form 4 filed 2026-08-18 (timely).
• Exercise (code M): 3,346 shares @ $27.04 (acquired) — $90,476.
• Tax/exercise withholding (code F): 2,596 shares @ $39.25 (disposed) — $101,893.
• Derivative disposition (code M): 3,346 shares @ $0.00 (reflects conversion of the option).
• Net shares received: 750 shares.
• Footnotes: F1 notes 288 shares from the DRIP and 2,632 shares from the 2025 ESOP allocation are reflected since Jan 28, 2026; F2 notes the options vested in four equal annual installments beginning Jan 27, 2022.
• Post-transaction total holdings were not provided in the excerpt of the filing.

Context

• This was an option exercise with partial net settlement: options were exercised and a portion of the resulting shares were withheld/surrendered to satisfy tax and/or exercise obligations (a common, routine practice).
• Withholding/disposal for taxes (code F) is not the same as an open-market sale and is generally administrative rather than a signal of sentiment.