Arrow Financial, a regional bank in New York, faces the risk of being delisted from the NASDAQ stock exchange after failing to file its 2022 annual report and its first quarterly report with the SEC on time.

The bank was to submit a plan to NASDAQ by June 2, 2023 to show how it will file its 2022 annual report within a reasonable timeframe. If NASDAQ accepts the plan, Arrow will have up to 180 days to comply. If NASDAQ rejects the plan, Arrow’s shares will be delisted and trade on less liquid over-the-counter markets, possibly at a lower valuation and without dividends. I have reached out to Arrow to see if a plan has been submitted and/or if there was any response from NASDAQ. I have not yet received a response and will report back if I hear anything.

The reason for the delay is unclear, but it may be related to the bank’s attempt to update its core technology systems last year. The bank also recently terminated its CEO and hired a new CFO. Arrow hasn’t given any reason for the CEO’s departure.

Despite the uncertainty, the bank declared its next dividend payment last month and does not expect official results to differ from the preliminary ones. The bank has a solid franchise and a low reliance on costlier wholesale deposits and high exposure to variable-rate loans, which helped it increase its lending margin in 2022.