THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Arrow Financial Corporation (AROW)

3/24/2006 Proxy Information

David L. Moynehan, a director of Arrow, is related to John J. Murphy, the Executive Vice President, Treasurer & Chief Financial Officer of Arrow, by virtue of the fact that Mr. MoynehanÕs wife and Mr. MurphyÕs wife are sisters.

During calendar year 2005, several of our directors and executive officers, including members of their immediate families and various corporations, organizations, trusts and estates with which these individuals are associated, had outstanding loans from our subsidiary banks in amounts of $60,000 or more. All such loans when made were made in the ordinary course of business, did not involve more than normal risk of collectability or present other unfavorable features, and were made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the same time for comparable loan transactions by the lending bank with unaffiliated persons. As of December 31, 2005, no such loan was classified by the Company as a non-accrual, past due, restructured or potential problem loan.

Director John J. Carusone, Jr. is an attorney in the firm of Carusone and Carusone, Saratoga Springs, New York. During 2005, Mr. Carusone's firm rendered legal services to our subsidiary, Saratoga National Bank and Trust Company, on a variety of matters, for which the firm received fees totaling $7,306.

Director Gary C. Dake is President of StewartÕs Shops Corp., a regional chain of convenience stores headquartered in Saratoga Springs, New York. ArrowÕs subsidiaries, Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company, each currently lease one branch office at market rates from StewartÕs Shops Corp. for which StewartÕs Shops Corp. received lease and leasehold improvement payments totaling $92,570 during 2005.

3/25/2005 Proxy Information

David L. Moynehan, a director of Arrow, is related to John J. Murphy, the Executive Vice President, Treasurer & Chief Financial Officer of Arrow, by virtue of the fact that Mr. MoynehanÕs wife and Mr. MurphyÕs wife are sisters.

During calendar year 2004, several of our directors and executive officers, including members of their immediate families and various corporations, organizations, trusts and estates with which these individuals are associated, had outstanding loans from our subsidiary banks in amounts of $60,000 or more. All such loans when made were made in the ordinary course of business, did not involve more than normal risk of collectability or present other unfavorable features, and were made on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the same time for comparable loan transactions by the lending bank with unaffiliated persons. As of December 31, 2004, no such loan was classified by the company as a non-accrual, past due, restructured or potential problem loan.

Director John J. Carusone, Jr. is an attorney in the firm of Carusone and Carusone, Saratoga Springs, New York. During 2004, Mr. Carusone's firm rendered legal services to our subsidiary, Saratoga National Bank and Trust Company, on a variety of matters, for which the firm received fees totaling $5,000.