FHLBNY Advances

12 Months Ended

Dec. 31, 2011

FHLBNY Advances [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

FHLBNYADVANCES (Dollars in Thousands)

Through our borrowing relationship with the FHLBNY, we have pledged collateral, including mortgage-backed securities and residential mortgage loans. Our unused borrowing capacity at the FHLBNY was $114,588 at December 31, 2011.  Participation in the FHLBNY program requires an investment in FHLBNY stock.  The investment in FHLBNY stock, included in Other Investments on the Consolidated Balance Sheets, amounted to $5,691 and $7,743 at December 31, 2011 and 2010, respectively.  Arrow also borrows longer-term funds from the FHLBNY.  Certain borrowings are in the form of “convertible advances.”  These advances have a set final maturity, but are callable by the FHLBNY at certain dates beginning no earlier than one year from the issuance date.  If the advances are called, Arrow may elect to have the funds replaced by the FHLBNY at the then prevailing market rate of interest.  The borrowings are secured by mortgage loans and/or mortgage-backed securities and/or FHLBNY stock held by Arrow.  The total amount of assets pledged to the FHLBNY for borrowing arrangements at December 31, 2011 and 2010 amounted to $177,762 and $220,563, respectively.  

The table below presents information applicable to FHLBNY advances as of December 31, 2011 and 2010:

2011		2010		Effective Rate	Next Call Date	Call Frequency	Maturity Date
$	10,000	$	—	1.43%			5/24/2014
10,000		10,000		3.88%	1/9/2012	Quarterly	10/6/2015
10,000		10,000		4.70%		Quarterly	1/12/2012
10,000		10,000		1.65%			7/1/2013
—		5,000		4.91%	1/28/2011	Quarterly	7/28/2011
—		5,000		4.82%	1/28/2011	Quarterly	7/28/2011
—		10,000		4.72%	1/27/2011	Quarterly	7/27/2012
—		10,000		4.46%	2/28/2011	Quarterly	8/28/2012
—		10,000		3.73%	3/20/2011	Quarterly	12/20/2012
—		10,000		5.12%		One-Time	2/14/2011
—		10,000		5.18%		One-Time	2/23/2011
—		10,000		5.03%		One-Time	4/28/2011
—		10,000		5.20%		One-Time	5/19/2011
—		10,000		5.07%		One-Time	5/19/2011
—		10,000		4.32%		One-Time	10/9/2012
$	40,000	$	130,000

The table below presents the amounts of FHLBNY advances maturing in the next five years and beyond:

Final Maturity	Amount
2012	$	10,000
2013	10,000
2014	10,000
2015	10,000
2016	—
Total FHLBNY Advances	$	40,000