LEASES (Dollars In Thousands)

At December 31, 2017, 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, 2017, 2016 and 2015 was as follows:



	2017		2016		2015
Net Rental Expense	$	746	$	822	$	862

Future minimum lease payments on operating leases at December 31, 2017 were as follows:



	Operating Leases
2018	$	690
2019	504
2020	373
2021	290
2022	169
2023 and beyond	184
Total Minimum Lease Payments	$	2,210

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.