Leases

3 Months Ended

Mar. 31, 2020

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 and 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.

The following includes quantitative data related to the Company's leases as of and for the three months ended March 31, 2020 and March 31, 2019:



		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2020			March 31, 2019
Right-of-use Assets	Premises and Equipment, Net	$	5,124		$	2,922
Lease Liabilities	Finance Leases	5,249			2,946

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,529		$	5,587
Lease Liabilities	Other Liabilities	5,602			5,639

Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	50		$	15
Operating Outgoing Cash Flows From Operating Leases		158			173
Financing Outgoing Cash Flows From Finance Leases		5			4
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities		—			2,939
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities		—			5,725
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		29.90			26.91
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.70			14.63
Weighted-average Discount Rate—Finance Leases %		3.75		%	3.82		%
Weighted-average Discount Rate—Operating Leases %		3.36		%	3.50		%



Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2020		March 31, 2019
Lease Cost:
Finance Lease Cost:
Amortization of Right-of-use assets	$	44	$	17
Interest on Lease Liabilities	50		15
Operating Lease Cost	207		173
Short-term Lease Cost	7		33
Variable Lease Cost	55		56
Total Lease Cost	$	363	$	294



Future Lease Payments at March 31, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2021	$	776	$	240
3/31/2022	640		243
3/31/2023	563		132
3/31/2024	548		243
3/31/2025	515		252
Thereafter	4,028		8,110
Total Undiscounted Cash Flows	$	7,070	$	9,220
Less: Net Present Value Adjustment	1,468		3,971
Lease Liability	$	5,602	$	5,249

Leases

LEASES (Dollars In Thousands)

The following includes quantitative data related to the Company's leases as of and for the three months ended March 31, 2020 and March 31, 2019:



		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2020			March 31, 2019
Right-of-use Assets	Premises and Equipment, Net	$	5,124		$	2,922
Lease Liabilities	Finance Leases	5,249			2,946

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,529		$	5,587
Lease Liabilities	Other Liabilities	5,602			5,639

Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	50		$	15
Operating Outgoing Cash Flows From Operating Leases		158			173
Financing Outgoing Cash Flows From Finance Leases		5			4
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities		—			2,939
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities		—			5,725
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		29.90			26.91
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.70			14.63
Weighted-average Discount Rate—Finance Leases %		3.75		%	3.82		%
Weighted-average Discount Rate—Operating Leases %		3.36		%	3.50		%



Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2020		March 31, 2019
Lease Cost:
Finance Lease Cost:
Amortization of Right-of-use assets	$	44	$	17
Interest on Lease Liabilities	50		15
Operating Lease Cost	207		173
Short-term Lease Cost	7		33
Variable Lease Cost	55		56
Total Lease Cost	$	363	$	294



Future Lease Payments at March 31, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2021	$	776	$	240
3/31/2022	640		243
3/31/2023	563		132
3/31/2024	548		243
3/31/2025	515		252
Thereafter	4,028		8,110
Total Undiscounted Cash Flows	$	7,070	$	9,220
Less: Net Present Value Adjustment	1,468		3,971
Lease Liability	$	5,602	$	5,249