By Susan Ellse Campbell
Arrow Financial Corporation has finalized plans to unify its two banking subsidiaries and is soon to reveal a new logo and signage under which the two financial institutions are being rebranded, announced parent company president and CEO David S. DeMarco.
The 37 branches of Glens Falls National Bank and Trust Company and Saratoga National Bank and Trust Company will be named Arrow Bank going forward, he said.
DeMarco said the change was years in the making.
“What we are doing is different from an ordinary bank merger, as Arrow Financial already owned these two community banks,” he said.
DeMarco explained that since the two banks have different back offices, the systems behind their operations have to become one to achieve the efficiencies the parent company is seeking.
“Sharing the same ‘back room’ is more efficient than two banks doing the same functions independently,” said DeMarco. “This will free up resources to enhance our strategic growth opportunities and provide unparalleled customer service.”
Glens Falls National Bank was formed in 1851 and, like Saratoga National Bank, has a strong presence in the communities it serves. The latter was formed in 1988 and has been a subsidiary of Arrow Financial since its beginning. But the two banks have different charters.
“As part of the reunification, Saratoga National Bank will technically be merged into Glens Falls Banks. That’s just legal work,” DeMarco said. “The hard part is having everything the same from a back room and marketing perspective.”
Right now, the marketing department has to provide a logo, branding, signage and advertising for two separate entitles, he said. The accounting group has to prepare two separate sets of financial statements, so there will be one call report published after the unification.
“There is simplification that will result from this, and getting there is not hard, but is going to be a lot of work internally,” he said.
Started in 1983 in Glens Falls, Arrow Financial is a publicly traded company and as CEO, DeMarco anticipates advantages from the unification for shareholders.
“The investment banking community sees the unification as a big plus,” he said. “I have heard from some people who said, ‘What took you so long?’”
Branches of the banks stretch from Albany to Plattsburgh and some growth has come organically, DeMarco said. There have also been acquisitions of a number of other bank branches, such as Fleet Bank and HSBC in Plattsburgh, and Arrow Financial is about to close on a Berkshire Bank in Whitehall. Other branches have been acquired in Schenectady and Rensselaer counties.
“As a combined entity, we are bigger and can buy more,” said DeMarco. “Strategic growth is the ability to expand our footprint and serve other communities,
For bank customers, DeMarco said, “Nothing changes but the name, and banks have been changing names for years. None of the staff is changing and none of the buildings are changing.”
How the unification is perceived will depend largely on how Arrow Financial delivers the message, according to DeMarco.
“The keys to that are our people and ability to provide customer service, which we are very proud of,” he said. “I would argue we are known as a bank that gives personal service, delivers value to our shareholders, and supports our communities.”
The combined assets of the banks is $4.2 billion and DeMarco said, “In a way we are getting bigger together, but we’re still the same size.”
The new logo and marketing campaign will soon be rolled out and carry the name “Arrow Bank” in a clean, more modern style than what the banks or Arrow Financial have now, he said.
“The rebranding focuses on the people, because banking is a people business,” said DeMarco. “What people going into those brick and mortar buildings appreciate about our company is that they know the staff and the staff know them. And that’s not changing.”
DeMarco said he believes the new name will make a newcomer into town who wants a local bank feel that Arrow Bank offers up-to-date resources and technology.
“People bank where they have trust and confidence and comfort,” he said. “It’s reputation that drives where you bank, and if our reputation maintains its current status, we hope it will attract more customers in our current market.”
Unification will make Arrow Bank “stronger and better” in terms of efficiency and productivity, said DeMarco.
“It’s one bank working for you,” he said. If that sounds like a tagline, DeMarco said the marketing team will be releasing the new tagline shortly along with the new logo.
Glens Falls National Bank has a full service insurance subsidiary, Upstate Insurance Agency, which will become a separate subsidiary of Arrow Financial. Its name will not change. Depositors can learn more at their local branches.