Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurements, Recurring and Nonrecurring

The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement:



Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
			Fair Value Measurements at Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Life-to-Date Gains (Losses)
Fair Value of Assets and Liabilities Measured on a Recurring Basis:
March 31, 2018
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	59,657	$	59,657	$	—	$	—
State and Municipal Obligations	9,743		—		9,743		—
Mortgage-Backed Securities	235,389		—		235,389		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	305,589		59,657		245,932		—
Equity Securities	1,579		—		1,579		—
Total Securities Measured on a Recurring Basis	$	307,168	$	59,657	$	247,511	$	—
December 31, 2017
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	59,894	$	59,894	$	—	$	—
State and Municipal Obligations	10,349		—		10,349		—
Mortgage-Backed Securities	227,596		—		227,596		—
Corporate and Other Debt Securities	800		—		800		—
Equity Securities	1,561		—		1,561		—
Total Securities Available-for Sale	$	300,200	$	59,894	$	240,306	$	—
March 31, 2017
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	147,231	$	54,695	$	92,536	$	—
State and Municipal Obligations	25,507		—		25,507		—
Mortgage-Backed Securities	169,728		—		169,728		—
Corporate and Other Debt Securities	3,298		—		3,298		—
Equity Securities	1,395		—		1,395		—
Total Securities Available-for Sale	$	347,159	$	54,695	$	292,464	$	—

Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
March 31, 2018
Collateral Dependent Impaired Loans	$	1,295	$	—	$	—	$	1,295	$	(58	)
Other Real Estate Owned and Repossessed Assets, Net	1,647		—		—		1,647		(582		)
December 31, 2017
Collateral Dependent Impaired Loans	$	—	$	—	$	—	$	—	$	—
Other Real Estate Owned and Repossessed Assets, Net	$	1,847	$	—	—		1,847		$	(569	)
March 31, 2017
Collateral Dependent Impaired Loans	$	288	$	—	$	—	$	288	$	(34	)
Other Real Estate Owned and Repossessed Assets, Net	1,734		—		—		1,734		(500		)

Fair Value, by Balance Sheet Grouping

The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments:



Schedule of Fair Values by Balance Sheet Grouping
					Fair Value Hierarchy
	Book Value		Fair Value		Level 1		Level 2		Level 3
March 31, 2018
Cash and Cash Equivalents	$	100,272	$	100,272	$	100,272	$	—	$	—
Securities Available-for-Sale	305,589		305,589		—		305,589		—
Securities Held-to-Maturity	330,124		324,938		—		324,938		—
Equity Securities	1,579		1,579		—		1,579		—
Federal Home Loan Bank and Federal Reserve Bank Stock	4,780		4,780		—		4,780		—
Net Loans	1,973,980		1,915,978		—		—		1,915,978
Accrued Interest Receivable	7,662		7,662		—		7,662		—
Deposits	2,411,273		2,402,122		—		2,402,122		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	74,957		74,957		—		74,957		—
Federal Home Loan Bank Term Advances	45,000		44,484		—		44,484		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	361		361		—		361		—

December 31, 2017
Cash and Cash Equivalents	$	72,838	$	72,838	$	72,838	$	—	$	—
Securities Available-for-Sale	300,200		300,200		59,894		240,306		—
Securities Held-to-Maturity	335,907		335,901		—		335,901		—
Federal Home Loan Bank and Federal Reserve Bank Stock	9,949		9,949		—		9,949		—
Net Loans	1,932,184		1,901,046		—		—		1,901,046
Accrued Interest Receivable	6,753		6,753		—		6,753		—
Deposits	2,245,116		2,236,548		—		2,236,548		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	64,966		64,966		—		64,966		—
Federal Home Loan Bank Overnight Advances	105,000		105,000		—		105,000		—
Federal Home Loan Bank Term Advances	55,000		54,781		—		54,781		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	410		410		—		410		—

March 31, 2017
Cash and Cash Equivalents	$	64,803	$	64,803	$	64,803	$	—	$	—
Securities Available-for-Sale	347,159		347,159		54,695		292,464		—
Securities Held-to-Maturity	335,211		335,105		—		335,105		—
Federal Home Loan Bank and Federal Reserve Bank Stock	6,826		6,826		—		6,826		—
Net Loans	1,793,589		1,773,895		—		—		1,773,895
Accrued Interest Receivable	7,530		7,530		—		7,530		—
Deposits	2,256,536		2,248,066		—		2,248,066		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	32,035		32,035		—		32,035		—
Federal Home Loan Bank Overnight Advances	32,000		32,000		—		32,000		—
Federal Home Loan Bank Term Advances	55,000		55,130		—		55,130		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	240		240		—		240		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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