LEASES (Dollars In Thousands)

At December 31, 2016, 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, 2016, 2015 and 2014 was as follows:



	2016		2015		2014
Net Rental Expense	$	822	$	862	$	784

Future minimum lease payments on operating leases at December 31, 2016 were as follows:



	Operating Leases
2017	$	675
2018	517
2019	378
2020	225
2021	178
2022 and beyond	278
Total Minimum Lease Payments	$	2,251

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.