Leases

12 Months Ended

Dec. 31, 2019

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

LEASES (Dollars In Thousands)

The Company is a lessee in its leases, which are mainly for financial services locations in addition to leases for corporate vehicles. These leases generally require the Company to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, the Company pays the variable payments to the lessor, and in other leases, the Company pays the variable payments directly to the applicable third party. None of the Company's current leases include any residual value guarantees or any subleases, and there are no significant rights or obligations of the Company for leases that have not commenced as of the reporting date.

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 as a director on the board of directors of each of Arrow and Saratoga National Bank and Trust Company. Additional information regarding this relationship can be found in Arrow's Proxy Statement for its Annual Meeting of Shareholders to be held May 6, 2020 under the caption "Corporate Governance - Related Party Transactions."

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2019:



Finance Lease Amounts:	Classification
Right-of-use Assets	Premises and Equipment, Net	$	5,171
Lease Liabilities	Finance Leases	5,254

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,644
Lease Liabilities	Other Liabilities	5,713


Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	99
Operating Outgoing Cash Flows From Operating Leases		779
Financing Outgoing Cash Flows From Finance Leases		28
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities		5,271
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities		6,266
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		30.80
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.71
Weighted-average Discount Rate—Finance Leases %		3.75		%
Weighted-average Discount Rate—Operating Leases %		3.35		%



Lease cost information for the Company's leases is as follows:
	Twelve Months Ended
	12/31/2019
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-use assets	$	100
Interest on Lease Liabilities	99
Operating Lease Cost	795
Short-term Lease Cost	85
Variable Lease Cost	205
Total Lease Cost	$	1,284



Future Lease Payments at December 31, 2019 are as follows:

	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2020	$	788	$	230
12/31/2021	671		238
12/31/2022	578		169
12/31/2023	542		243
12/31/2024	521		249
Thereafter	4,113		8,271
Total Undiscounted Cash Flows	7,213		9,400
Less: Net Present Value Adjustment	1,500		4,146
Lease Liability	$	5,713	$	5,254

Arrow adopted ASU 2016-02 using a modified retrospective adoption at January 1, 2019 as discussed in Note 1. The following disclosure is provided for the period prior to the adoption.

Future minimum lease payments on operating leases at December 31, 2018 were as follows:



	Operating Leases
2019	$	857
2020	626
2021	497
2022	357
2023	286
2024 and beyond	2,776
Total Minimum Lease Payments	$	5,399

Leases

LEASES (Dollars In Thousands)

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2019:



Finance Lease Amounts:	Classification
Right-of-use Assets	Premises and Equipment, Net	$	5,171
Lease Liabilities	Finance Leases	5,254

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,644
Lease Liabilities	Other Liabilities	5,713


Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	99
Operating Outgoing Cash Flows From Operating Leases		779
Financing Outgoing Cash Flows From Finance Leases		28
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities		5,271
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities		6,266
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		30.80
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.71
Weighted-average Discount Rate—Finance Leases %		3.75		%
Weighted-average Discount Rate—Operating Leases %		3.35		%



Lease cost information for the Company's leases is as follows:
	Twelve Months Ended
	12/31/2019
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-use assets	$	100
Interest on Lease Liabilities	99
Operating Lease Cost	795
Short-term Lease Cost	85
Variable Lease Cost	205
Total Lease Cost	$	1,284



Future Lease Payments at December 31, 2019 are as follows:

	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2020	$	788	$	230
12/31/2021	671		238
12/31/2022	578		169
12/31/2023	542		243
12/31/2024	521		249
Thereafter	4,113		8,271
Total Undiscounted Cash Flows	7,213		9,400
Less: Net Present Value Adjustment	1,500		4,146
Lease Liability	$	5,713	$	5,254

Arrow adopted ASU 2016-02 using a modified retrospective adoption at January 1, 2019 as discussed in Note 1. The following disclosure is provided for the period prior to the adoption.

Future minimum lease payments on operating leases at December 31, 2018 were as follows:



	Operating Leases
2019	$	857
2020	626
2021	497
2022	357
2023	286
2024 and beyond	2,776
Total Minimum Lease Payments	$	5,399