Leases

6 Months Ended

Jun. 30, 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 six months ended June 30, 2020 and June 30, 2019:


		Six Months Ended
Finance Lease Amounts:	Classification	June 30, 2020			June 30, 2019
Right-of-use Assets	Premises and Equipment, Net	$	5,080		$	5,226
Lease Liabilities	Finance Leases	5,239			5,270

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,640		$	5,859
Lease Liabilities	Other Liabilities	5,718			5,918

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	99		$	43
Operating Outgoing Cash Flows From Operating Leases		355			355
Financing Outgoing Cash Flows From Finance Leases		15			12
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		269			6,147
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		29.7			31.3
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.2			14.1
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.27		%	3.47		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended						Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-use assets	$	45	$	27	$	89	$	44
Interest on Lease Liabilities	49		28		99		43
Operating Lease Cost	203		193		410		366
Short-term Lease Cost	14		23		21		56
Variable Lease Cost	33		39		88		95
Total Lease Cost	$	344	$	310	$	707	$	604


Future Lease Payments at June 30, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
6/30/2021	$	807	$	241
6/30/2022	676		243
6/30/2023	599		95
6/30/2024	600		244
6/30/2025	564		252
Thereafter	3,900		8,084
Total Undiscounted Cash Flows	$	7,146	$	9,159
Less: Net Present Value Adjustment	1,428		3,920
Lease Liability	$	5,718	$	5,239

Leases

LEASES (Dollars In Thousands)

The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2020 and June 30, 2019:


		Six Months Ended
Finance Lease Amounts:	Classification	June 30, 2020			June 30, 2019
Right-of-use Assets	Premises and Equipment, Net	$	5,080		$	5,226
Lease Liabilities	Finance Leases	5,239			5,270

Operating Lease Amounts:
Right-of-use Assets	Other Assets	$	5,640		$	5,859
Lease Liabilities	Other Liabilities	5,718			5,918

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	99		$	43
Operating Outgoing Cash Flows From Operating Leases		355			355
Financing Outgoing Cash Flows From Finance Leases		15			12
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		269			6,147
Weighted-average Remaining Lease Term—Finance Leases (Yrs.)		29.7			31.3
Weighted-average Remaining Lease Term—Operating Leases (Yrs.)		13.2			14.1
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.27		%	3.47		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended						Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-use assets	$	45	$	27	$	89	$	44
Interest on Lease Liabilities	49		28		99		43
Operating Lease Cost	203		193		410		366
Short-term Lease Cost	14		23		21		56
Variable Lease Cost	33		39		88		95
Total Lease Cost	$	344	$	310	$	707	$	604


Future Lease Payments at June 30, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
6/30/2021	$	807	$	241
6/30/2022	676		243
6/30/2023	599		95
6/30/2024	600		244
6/30/2025	564		252
Thereafter	3,900		8,084
Total Undiscounted Cash Flows	$	7,146	$	9,159
Less: Net Present Value Adjustment	1,428		3,920
Lease Liability	$	5,718	$	5,239