Investments, Debt and Equity Securities (USD $)
In Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Jun. 30, 2010

Investments, Debt and Equity Securities

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4.   Investments, Debt and Equity Securities (In Thousands)

A summary of the amortized costs and the approximate fair values of securities at June 30, 2011, December 31, 2010, and June 30, 2010 are presented below.  Amortized cost is reported net of other-than-temporary impairment charges.

Securities Available-for-Sale:

	Amortized Cost	Fair Value	Gross Unrealized Gains	Gross Unrealized Losses
June 30, 2011:
U.S. Agency Securities	$ 49,312	$ 49,551	$   239	$   ---
State and Municipal Obligations	90,451	90,700	251	2
Collateralized Mortgage Obligations	152,751	159,985	7,311	77
Mortgage-Backed Securities – Residential	204,443	208,044	3,815	214
Corporate and Other Debt Securities	1,357	1,345	---	12
Mutual Funds and Equity Securities	1,314	1,469	165	10
Total Securities Available-for-Sale	$499,628	$511,094	$11,781	$ 315
December 31, 2010:
U.S. Agency Securities	$  97,943	$  98,173	$   326	$      96
State and Municipal Obligations	89,471	89,528	72	15
Collateralized Mortgage Obligations	161,247	166,964	6,692	975
Mortgage-Backed Securities – Residential	159,636	159,926	2,532	2,242
Corporate and Other Debt Securities	1,516	1,417	---	99
Mutual Funds and Equity Securities	1,333	1,356	70	47
Total Securities Available-for-Sale	$511,146	$517,364	$9,692	$3,474
June 30, 2010:
U.S. Agency Securities	$162,937	$163,858	$     921	$    --
State and Municipal Obligations	18,876	18,953	84	7
Collateralized Mortgage Obligations	169,355	177,863	8,547	39
Mortgage-Backed Securities – Residential	80,824	84,552	3,728	---
Corporate and Other Debt Securities	1,552	1,433	---	119
Mutual Funds and Equity Securities	1,311	1,208	51	154
Total Securities Available-for-Sale	$434,855	$447,867	$13,331	$319

Securities Held-to-Maturity:

	Amortized Cost	Fair Value	Gross Unrealized Gains	Gross Unrealized Losses
June 30, 2011:
State and Municipal Obligations	$137,334	$142,327	$5,008	$15
Corporate and Other Debt Securities	1,000	1,000	---	---
Total Securities Held-to-Maturity	$138,334	$143,327	$5,008	$15
December 31, 2010:
State and Municipal Obligations	$158,938	$161,713	$2,911	$136
Corporate and Other Debt Securities	1,000	1,000	---	---
Total Securities Held-to-Maturity	$159,938	$162,713	$2,911	$136
June 30, 2010:
State and Municipal Obligations	$157,226	$161,077	$3,970	$119
Corporate and Other Debt Securities	1,000	1,000	---	---
Total Securities Held-to-Maturity	$158,226	$162,077	$3,970	$119

4.     Investments, Debt and Equity Securities, continued

As reported in the Consolidated Balance Sheets, Other Investments include Federal Home Loan Bank of New York (“FHLBNY”) and Federal Reserve Bank (“FRB”) stock, which are reported at cost.  FHLBNY and FRB stock are restricted investment securities and amounted to $6,060 and $959 at June 30, 2011, respectively, $7,743 and $859 at December 31, 2010, respectively, and $8,642 and $832 at June 30, 2010, respectively.  The required level of FHLBNY stock is based on the amount of FHLBNY borrowings and is pledged to secure those borrowings.   While some Federal Home Loan Banks have stopped paying dividends and repurchasing stock upon reductions in debt levels, the FHLBNY continues to pay dividends and repurchase its stock.  Accordingly, we have not recognized any impairment on our holdings of FHLBNY common stock.  However, the FHLBNY has reported impairment issues among its holdings of mortgage-backed securities.

A summary of the maturities of securities as of June 30, 2011 is presented below.  Mutual funds and equity securities, which have no stated maturity, are not included in the table below.  Collateralized mortgage obligations and other mortgage-backed-securities are included in the schedule based on their expected average lives.  Actual maturities will differ from the table below because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Maturities of Debt Securities:	Available-for-Sale		Held-to-Maturity
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Within One Year:
U.S. Agency Securities	$ 15,754	$  15,824	$         ---	$          ---
State and Municipal Obligations	66,530	66,580	16,057	16,234
Collateralized Mortgage Obligations	19,685	19,897	---	---
Mortgage-Backed Securities – Residential	2,238	2,309	---	---
Total	104,207	104,610	16,057	16,234
From 1 - 5 Years:
U.S. Agency Securities	33,558	33,727	---	---
State and Municipal Obligations	20,180	20,355	51,686	52,778
Collateralized Mortgage Obligations	96,013	101,434	---	---
Mortgage-Backed Securities – Residential	159,910	162,114	---	---
Corporate and Other Debt Securities	28	28	---	---
Total	309,689	317,658	51,686	52,778
From 5 - 10 Years:
State and Municipal Obligations	1,098	1,122	59,191	62,535
Collateralized Mortgage Obligations	37,053	38,653	---	---
Mortgage-Backed Securities – Residential	24,137	24,965	---	---
Total	62,288	64,740	59,191	62,535
Over 10 Years:
State and Municipal Obligations	2,643	2,643	10,400	10,780
Mortgage-Backed Securities – Residential	18,158	18,657	---	---
Corporate and Other Debt Securities	1,329	1,317	1,000	1,000
Total	22,130	22,617	11,400	11,780
Total Debt Securities	$498,314	$509,625	$138,334	$143,327

The fair value of securities pledged to secure repurchase agreements amounted to $60,361, $51,581 and $60,847 at June 30, 2011, December 31, 2010 and June 30, 2010, respectively.  The fair value of securities pledged to secure public and trust deposits and for other purposes totaled $371,408, $382,142 and $327,439 at June 30, 2011, December 31, 2010, and June 30, 2010, respectively.  Other mortgage-backed securities at June 30, 2011, December 31, 2010 and June 30, 2010 included $1,325, $1,598 and $1,865, respectively, of loans previously securitized by Arrow, which it continues to service.

4.     Investments, Debt and Equity Securities, continued

Temporarily Impaired Securities
June 30, 2011	Less than 12 Months		12 Months or Longer		Total
Available-for-Sale Portfolio:	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Agency Securities	$        ---	$   ---	$   ---	$     ---	$       ---	$     ---
State & Municipal Obligations	3,359	2	---	---	3,359	2
Collateralized Mortgage Obligations	11,804	77	146	---	11,950	77
Mortgage-Backed Securities – Residential	53,587	214	---	---	53,587	214
Corporate & Other Debt Securities	---	---	317	12	317	12
Mutual Funds and Equity Securities	28	8	46	2	74	10
Total Securities Available-for-Sale	$68,778	$301	$509	$     14	$ 69,287	$  315
Held-to-Maturity Portfolio
State & Municipal Obligations	$---	$---	$1,561	$15	$1,561	$15

The table above for June 30, 2011 consists of 33 securities where the current fair value is less than the related amortized cost.  These unrealized losses do not reflect any deterioration of the credit worthiness of the issuing entities.  All of the CMO’s are agency backed and are all rated AAA, as are the mortgage-backed securities.  The municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured.  Obligations issued by school districts are supported by state aid.  For any non-rated municipal securities, credit analysis shows no widespread deterioration in the credit worthiness of the municipalities.  Corporate and other debt securities consist of one private placement trust preferred, and one trust preferred pool.  The private placement trust preferred is rated AAA by Standard & Poor’s; the trust preferred pool is rated investment grade, with the privately issued securities securing the note performing.  Subsequent to June 30, 2011, there were no securities downgraded below investment grade. 

The unrealized losses on these temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities.   Because we do not currently intend to sell any of our temporarily impaired securities, and because it is not more likely than not that we would be required to sell the securities prior to recovery, the impairment is considered temporary.

Temporarily Impaired Securities
December 31, 2010	Less than 12 Months		12 Months or Longer		Total
Available-for-Sale Portfolio:	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Agency Securities	$  23,928	$    72	$  5,976	$  24	$  29,904	$    96
State & Municipal Obligations	11,632	11	2,432	4	14,064	15
Collateralized Mortgage Obligations	32,027	975	---	---	32,027	975
Mortgage-Backed Securities - Residential	69,461	1,957	12,129	285	81,590	2,242
Corporate & Other Debt Securities	283	48	949	51	1,232	99
Mutual Funds and Equity Securities	1,095	47	---	---	1,095	47
Total Securities Available-for-Sale	$138,426	$3,110	$21,486	$364	$159,912	$3,474
Held-to-Maturity Portfolio
State & Municipal Obligations	$6,449	$73	$4,552	$63	$11,001	$136

The table above for December 31, 2010 consists of 104 securities where the current fair value is less than the related amortized cost.  These unrealized losses do not reflect any deterioration of the credit worthiness of the issuing entities.  Agency-backed CMOs are all rated AAA, as are the mortgage-backed securities.  The municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured.  Obligations issued by school districts are supported by state aid.  For any non-rated municipal securities, third party credit analysis shows no deterioration in the credit worthiness of the municipalities.  Corporate and other debt securities consist of one private placement trust preferred, and one trust preferred pool.  The private placement trust preferred is rated AAA by Standard & Poor’s; the trust preferred pool is rated investment grade, with the privately issued securities securing the note performing.  Subsequent to December 31, 2010, there were no securities downgraded below investment grade. 

4.     Investments, Debt and Equity Securities, continued

Temporarily Impaired Securities
June 30, 2010	Less than 12 Months		12 Months or Longer		Total
Available-for-Sale Portfolio:	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
State & Municipal Obligations	$  1,589	$     7	$     ---	$    --	$  1,589	$    7
Collateralized Mortgage Obligations	9,403	39	---	---	9,403	39
Mortgage-Backed Securities – Residential	---	---	---	---	---	---
Corporate & Other Debt Securities	---	---	1,263	120	1,263	120
Mutual Funds and Equity Securities	948	146	40	7	988	153
Total Securities Available-for-Sale	$11,940	$  192	$1,303	$127	$13,243	$319
Held-to-Maturity Portfolio
State & Municipal Obligations	$4,381	$35	$3,591	$84	$7,972	$119

The table above for June 30, 2010 consists of 96 securities where the current fair value is less than the related amortized cost.  These unrealized losses do not reflect any deterioration of the credit worthiness of the issuing entities.  Agency-backed CMOs are all rated AAA, as are the mortgage-backed securities.  The municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured.  Obligations issued by school districts are supported by state aid.  For any non-rated municipal securities, credit analysis shows no deterioration in the credit worthiness of the municipalities.  Corporate and other debt securities consist of one private placement trust preferred, and one trust preferred pool.  The private placement trust preferred is rated AAA by Standard & Poor’s; the trust preferred pool is rated investment grade, with the privately issued securities securing the note performing.  Subsequent to June 30, 2010, there were no securities downgraded below investment grade. 

Other-Than-Temporary Impairment

On a quarterly basis, Arrow performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered other-than-temporary impairment. A debt security is considered impaired if the fair value is less than its amortized cost basis at the reporting date. If impaired, Arrow then assesses whether the unrealized loss is other-than-temporary. An unrealized loss on a debt security is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. As a result, the credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income provided that Arrow does not intend to sell the underlying debt security and it is more-likely-than not that Arrow would not have to sell the debt security prior to recovery.

At June 30, 2011 and December 31, 2010 mutual funds and equity securities included shares of one common stock that had been deemed to be other-than-temporarily impaired.  The common stock had a book value of $1,469 prior to the recognition of $375 in losses charged to earnings for the year ended December 31, 2009.  The approximate fair value for this security was $1,210, 1,050 and $948 at June 30, 2011, December 31, 2010 and June 30, 2010, respectively.  During the second quarter of 2011, we recorded a $17 other-than-temporary impairment on a security in our held-to-maturity portfolio.

Losses on the Sale of Securities Available-for-Sale

$ 17

$ 0