XML 72 R40.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The following tables set forth changes in the plans’ benefit obligations (projected benefit obligation for pension benefits and accumulated benefit obligation for postretirement benefits) and changes in the plans’ assets and the funded status of the pension plans and other postretirement benefit plan at December 31:

Schedule of Defined Benefit Plan Disclosures
 
Employees'
Pension
Plan
 
Select
Executive
Retirement
Plan
 
Postretirement
Benefit
Plans
Defined Benefit Plan Funded Status
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Fair Value of Plan Assets
$
57,051

 
$
—

 
$
—

Benefit Obligation
42,322

 
5,194

 
8,652

Funded Status of Plan
$
14,729

 
$
(5,194
)
 
$
(8,652
)
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Fair Value of Plan Assets
$
48,445

 
$
—

 
$
—

Benefit Obligation
38,069

 
4,710

 
7,706

Funded Status of Plan
$
10,376

 
$
(4,710
)
 
$
(7,706
)
 
 
 
 
 
 
Change in Benefit Obligation
 
 
 
 
 
Benefit Obligation, at January 1, 2019
$
38,069

 
$
4,710

 
$
7,706

Service Cost 1
1,527

 
324

 
121

Interest Cost 2
1,765

 
217

 
364

Plan Participants' Contributions
—

 
—

 
485

Actuarial Loss
2,960

 
409

 
670

Benefits Paid
(1,999
)
 
(466
)
 
(694
)
Benefit Obligation, at December 31, 2019
$
42,322

 
$
5,194

 
$
8,652

 
 
 
 
 
 
Benefit Obligation, at January 1, 2018
$
38,921

 
$
4,586

 
$
7,727

Service Cost 1
1,557

 
414

 
136

Interest Cost 2
1,598

 
192

 
333

Plan Participants' Contributions
—

 
—

 
416

Amendments
—

 
—

 
453

Actuarial Gain
(795
)
 
(17
)
 
(664
)
Benefits Paid
(3,212
)
 
(465
)
 
(695
)
Benefit Obligation, at December 31, 2018
$
38,069

 
$
4,710

 
$
7,706

 
 
 
 
 
 
Change in Fair Value of Plan Assets
 
 
 
 
 
Fair Value of Plan Assets, at January 1, 2019
$
48,445

 
$
—

 
$
—

Actual Return on Plan Assets
10,605

 
—

 
—

Employer Contributions
—

 
466

 
209

Plan Participants' Contributions
—

 
—

 
485

Benefits Paid
(1,999
)
 
(466
)
 
(694
)
Fair Value of Plan Assets, at December 31, 2019
$
57,051

 
$
—

 
$
—

 
 
 
 
 
 
Fair Value of Plan Assets, at January 1, 2018
$
53,571

 
$
—

 
$
—

Actual Return on Plan Assets
(1,914
)
 
—

 
—

Employer Contributions
—

 
465

 
279

Plan Participants' Contributions
—

 
—

 
416

Benefits Paid
(3,212
)
 
(465
)
 
(695
)
Fair Value of Plan Assets, at December 31, 2018
$
48,445

 
$
—

 
$
—

 
 
 
 
 
 
Accumulated Benefit Obligation at December 31, 2019
$
42,041

 
$
5,125

 
$
8,652

 
 
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheets
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Prepaid Pension Asset
$
14,729

 
$
—

 
—

Accrued Benefit Liability
—

 
(5,194
)
 
(8,652
)
Net Benefit Recognized
$
14,729

 
$
(5,194
)
 
$
(8,652
)
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Prepaid Pension Asset
$
10,376

 
$
—

 
—

Accrued Benefit Liability
—

 
(4,710
)
 
(7,706
)
Net Benefit Recognized
$
10,376

 
$
(4,710
)
 
$
(7,706
)
Schedule of Defined Benefit Plan Disclosures
 
Employees'
Pension
Plan
 
Select
Executive
Retirement
Plan
 
Postretirement
Benefit
Plans
Amounts Recognized in Other Comprehensive Income (Loss)
 
 
 
 
 
For the Year Ended December 31, 2019
 
 
 
 
 
Net Unamortized (Gain) Loss Arising During the Period
$
(4,584
)
 
$
409

 
$
670

Amortization of Net (Loss) Gain
(613
)
 
(113
)
 
42

Amortization of Prior Service Cost
(69
)
 
(54
)
 
(101
)
  Total Other Comprehensive (Loss) Income for Pension and
Other Postretirement Benefit Plans
$
(5,266
)
 
$
242

 
$
611

 
 
 
 
 
 
For the Year Ended December 31, 2018
 
 
 
 
 
Net Unamortized (Gains) Loss Arising During the Period
$
4,480

 
$
(17
)
 
$
(665
)
Net Prior Service Cost Arising During the Period
—

 
—

 
453

Amortization of Net Gains
(194
)
 
(131
)
 
—

Amortization of Prior Service Credit (Cost)
49

 
(57
)
 
(100
)
  Total Other Comprehensive Income (Loss) for Pension and
     Other Postretirement Benefit Plans
$
4,335

 
$
(205
)
 
$
(312
)
 
 
 
 
 
 
For the Year Ended December 31, 2017
 
 
 
 
 
Net Unamortized Loss Arising During the Period
$
(517
)
 
$
244

 
$
(14
)
Net Prior Service Cost Arising During the Period
—

 
—

 
—

Amortization of Net (Gains) Loss
(306
)
 
(129
)
 
24

Amortization of Prior Service (Cost) Credit
57

 
(57
)
 
11

  Total Other Comprehensive (Loss) Income for Pension and
     Other Postretirement Benefit Plans
$
(766
)
 
$
58

 
$
21

 
 
 
 
 
 
Accumulated Other Comprehensive Income
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Net Actuarial Loss (Gains)
$
5,745

 
$
2,275

 
$
(181
)
Prior Service Cost
244

 
378

 
685

Total Accumulated Other Comprehensive Income, Before Tax
$
5,989

 
$
2,653

 
$
504

 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Net Actuarial Loss (Gains)
$
10,942

 
$
1,979

 
$
(893
)
Prior Service Cost
313

 
432

 
786

Total Accumulated Other Comprehensive Income, Before Tax
$
11,255

 
$
2,411

 
$
(107
)
Amounts that will be Amortized from Accumulated
  Other Comprehensive Income the Next Year
 
 
 
 
 
Net Actuarial Loss
$
4

 
$
132

 
$
7

Prior Service Cost
$
63

 
$
42

 
$
106

 
 
 
 
 
 
Net Periodic Benefit Cost
 
 
 
 
 
For the Year Ended December 31, 2019
 
 
 
 
 
Service Cost 1
$
1,527

 
$
324

 
$
121

Interest Cost 2
1,765

 
217

 
364

Expected Return on Plan Assets 2
(3,060
)
 
—

 
—

Amortization of Prior Service Cost 2
69

 
54

 
101

Amortization of Net Loss 2
613

 
113

 
(42
)
Net Periodic Benefit Cost
$
914

 
$
708

 
$
544

 
 
 
 
 
 
For the Year Ended December 31, 2018
 
 
 
 
 
Service Cost 1
$
1,557

 
$
414

 
$
136

Interest Cost 2
1,598

 
192

 
333

Expected Return on Plan Assets 2
(3,362
)
 
—

 
—

Amortization of Prior Service (Credit) Cost 2
(49
)
 
57

 
100

Amortization of Net Loss 2
194

 
131

 
—

Net Periodic Benefit (Credit) Cost
$
(62
)
 
$
794

 
$
569

Schedule of Defined Benefit Plan Disclosures
 
Employees'
Pension
Plan
 
Select
Executive
Retirement
Plan
 
Postretirement
Benefit
Plans
 
 
 
 
 
 
For the Year Ended December 31, 2017
 
 
 
 
 
Service Cost 1
$
1,392

 
$
45

 
$
130

Interest Cost 2
1,682

 
209

 
339

Expected Return on Plan Assets 2
(3,141
)
 
—

 
—

Amortization of Prior Service (Credit) Cost 2
(57
)
 
57

 
(11
)
Amortization of Net Loss (Gain) 2
306

 
129

 
(24
)
Net Periodic Benefit Cost
$
182

 
$
440

 
$
434

 
 
 
 
 
 
Weighted-Average Assumptions Used in
  Calculating Benefit Obligation
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Discount Rate
3.72
%
 
3.75
%
 
3.76
%
Rate of Compensation Increase
3.50
%
 
3.50
%
 
3.50
%
Interest Rate Credit for Determining
  Projected Cash Balance Account
3.00
%
 
3.00
%
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Discount Rate
4.81
%
 
4.80
%
 
4.81
%
Rate of Compensation Increase
3.50
%
 
3.50
%
 
3.50
%
Interest Rate Credit for Determining
Projected Cash Balance Account
3.36
%
 
3.36
%
 
 
 
 
 
 
 
 
Weighted-Average Assumptions Used in
  Calculating Net Periodic Benefit Cost
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Discount Rate
4.81
%
 
4.80
%
 
4.81
%
Expected Long-Term Return on Plan Assets
6.50
%
 


 
 
Rate of Compensation Increase
3.50
%
 
3.50
%
 
3.50
%
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00
%
 
3.00
%
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Discount Rate
4.24
%
 
4.18
%
 
4.22
%
Expected Long-Term Return on Plan Assets
6.50
%
 


 
 
Rate of Compensation Increase
3.50
%
 
3.50
%
 
3.50
%
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00
%
 
3.00
%
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
Discount Rate
4.83
%
 
4.73
%
 
4.80
%
Expected Long-Term Return on Plan Assets
6.50
%
 


 
 
Rate of Compensation Increase
3.50
%
 
3.50
%
 
3.50
%
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00
%
 
3.00
%
 
 
Interest Rate to Annuitize Cash
      Balance Account
4.50
%
 
4.50
%
 
 
Interest Rate to Convert Annuities to Actuarially
  Equivalent Lump Sum Amounts
4.50
%
 
4.50
%
 
 
Footnotes:
1. 
Included in Salaries and Employee Benefits on the Consolidated Statements of Income
2. 
Included in Other Operating Expense on the Consolidated Statements of Income

Schedule of Defined Benefit Plan Disclosures
Information about Defined Benefit Plan Assets - Employees' Pension Plan
Fair Value Measurements Using:
Asset Category
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
 
Percent of Total
 
Target Allocation Minimum
 
Target Allocation Maximum
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
$
—

 
$
—

 
$
—

 
$
—

 
—
%
 
—
%
 
15.0
%
Interest-Bearing Money Market Fund
2,742

 
—

 
—

 
2,742

 
4.8
%
 
—
%
 
15.0
%
Arrow Common Stock1
6,542

 
—

 
—

 
6,542

 
11.5
%
 
—
%
 
10.0
%
North Country Funds - Equity 2
21,209

 
—

 
—

 
21,209

 
37.2
%
 


 


Other Mutual Funds - Equity
15,868

 
—

 
—

 
15,868

 
27.8
%
 


 


Total Equity Funds
37,077

 
—

 
—

 
37,077

 
65.0
%
 
55.0
%
 
85.0
%
North Country Funds - Fixed income 2
8,692

 
—

 
—

 
8,692

 
15.2
%
 


 


Other Mutual Funds - Fixed Income
793

 
—

 
—

 
793

 
1.4
%
 


 


Total Fixed Income Funds
9,485

 
—

 
—

 
9,485

 
16.6
%
 
10.0
%
 
30.0
%
Alternative ETF
1,205

 
—

 
—

 
1,205

 
2.1
%
 
—
%
 
20.0
%
  Total
$
57,051

 
$
—

 
$
—

 
$
57,051

 
100.0
%
 


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
$
—

 
$
—

 
$
—

 
$
—

 
—
%
 
—
%
 
15.0
%
Interest-Bearing Money Market Fund
3,310

 
—

 
—

 
3,310

 
6.8
%
 
—
%
 
15.0
%
Arrow Common Stock1
5,381

 
—

 
—

 
5,381

 
11.1
%
 
—
%
 
10.0
%
North Country Funds - Equity 2
16,629

 
—

 
—

 
16,629

 
34.3
%
 


 


Other Mutual Funds - Equity
13,081

 
—

 
—

 
13,081

 
27.0
%
 


 


Total Equity Funds
29,710

 
—

 
—

 
29,710

 
61.3
%
 
55.0
%
 
85.0
%
North Country Funds - Fixed income 2
8,124

 
—

 
—

 
8,124

 
16.8
%
 


 


Other Mutual Funds - Fixed Income
1,920

 
—

 
—

 
1,920

 
4.0
%
 


 


Total Fixed Income Funds
10,044

 
—

 
—

 
10,044

 
20.8
%
 
10.0
%
 
30.0
%
  Total
$
48,445

 
$
—

 
$
—

 
$
48,445

 
100.0
%
 


 



Footnotes:
1 Payment for the acquisition of Arrow Financial Corporation common stock was under 10% of the total fair value of the employee's pension plan assets at the time of acquisition.
2 The North Country Funds - Equity and the North Country Funds - Fixed Income are publicly traded mutual funds advised by Arrow's subsidiary, North Country Investment Advisers, Inc.

Schedule of Defined Benefit Plan Disclosures
 
Employees'
Pension
Plan
 
Select
Executive
Retirement
Plan
 
Postretirement
Benefit
Plans
Expected Future Benefit Payments
 
 
 
 
 
2020
$
2,975

 
$
444

 
$
638

2021
2,527

 
427

 
673

2022
2,808

 
409

 
655

2023
3,048

 
389

 
629

2024
2,922

 
555

 
643

2025 - 2029
14,571

 
2,482

 
3,271

 


 
 
 
 
Estimated Contributions During 2020
$
—

 
$
444

 
$
638

 
 
 
 
 
 
Assumed Health Care Cost Trend Rates
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Health Care Cost Trend
  Rate Assumed for Next Year
 
 
 
 
6.75
%
Rate to which the Cost Trend
  Rate is Assumed to Decline
  (the Ultimate Trend Rate)
 
 
 
 
3.78
%
Year that the Rate Reaches
   the Ultimate Trend Rate
 
 
 
 
2075

 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
Health Care Cost Trend
  Rate Assumed for Next Year
 
 
 
 
7.00
%
Rate to which the Cost Trend
  Rate is Assumed to Decline
  (the Ultimate Trend Rate)
 
 
 
 
3.78
%
Year that the Rate Reaches
   the Ultimate Trend Rate
 
 
 
 
2075

 
 
 
 
 
 
Effect of a One-Percentage Point Change in Assumed
  Health Care Cost Trend Rates
 
 
 
 
 
Effect of a One Percentage Point Increase on
  Service and Interest Cost Components
 
 
 
 
$
43

Effect of a One Percentage Point Decrease on
  Service and Interest Cost Components
 
 
 
 
(36
)
Effect of a One Percentage Point Increase on
  Accumulated Postretirement Benefit Obligation
 
 
 
 
550

Effect of a One Percentage Point Decrease on
  Accumulated Postretirement Benefit Obligation
 
 
 
 
(477
)