LEASES (Dollars In Thousands)

At December 31, 2015, Arrow was obligated under a number of noncancellable operating leases for buildings and equipment. Certain of these leases provide for escalation clauses and contain renewal options calling for increased rentals if the lease is renewed.

Net rental expense for the years ended December 31, 2015, 2014 and 2013 was as follows:



	2015		2014		2013
Net Rental Expense	$	862	$	784	$	671

Future minimum lease payments on operating leases at December 31, 2015 were as follows:



	Operating Leases
2016	$	704
2017	517
2018	454
2019	333
2020	219
Later Years	468
Total Minimum Lease Payments	$	2,695

Arrow leases five of its branch offices, at market rates, from Stewart’s Shops Corp. Mr. Gary C. Dake, President of Stewart’s Shops Corp., serves on both the boards of Arrow and Saratoga National Bank and Trust Company.