Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

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 four 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 nine months ended September 30, 2020 and September 30, 2019:

		Nine Months Ended
Finance Lease Amounts:	Classification	September 30, 2020			September 30, 2019
Right-of-Use Assets	Premises and Equipment, Net	$	5,036		$	5,199
Lease Liabilities	Finance Leases	5,228			5,263
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,496		$	5,815
Lease Liabilities	Other Liabilities	5,577			5,876
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	148		$	71
Operating Outgoing Cash Flows From Operating Leases		567			563
Financing Outgoing Cash Flows From Finance Leases		26			19
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		294			6,266
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		29.4			31.05
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		13.1			13.75
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.27		%	3.35		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	28	$	133	$	72
Interest on Lease Liabilities	49		28		148		71
Operating Lease Cost	214		211		624		577
Short-term Lease Cost	11		17		32		73
Variable Lease Cost	77		45		165		140
Total Lease Cost	$	395	$	329	$	1,102	$	933

Future Lease Payments at September 30, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
9/30/2021	$	781	$	243
9/30/2022	665		243
9/30/2023	601		243
9/30/2024	590		247
9/30/2025	551		259
Thereafter	3,773		7,867
Total Undiscounted Cash Flows	$	6,961	$	9,102
Less: Net Present Value Adjustment	1,384		3,874
Lease Liability	$	5,577	$	5,228

Leases

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 four 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 nine months ended September 30, 2020 and September 30, 2019:

		Nine Months Ended
Finance Lease Amounts:	Classification	September 30, 2020			September 30, 2019
Right-of-Use Assets	Premises and Equipment, Net	$	5,036		$	5,199
Lease Liabilities	Finance Leases	5,228			5,263
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,496		$	5,815
Lease Liabilities	Other Liabilities	5,577			5,876
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	148		$	71
Operating Outgoing Cash Flows From Operating Leases		567			563
Financing Outgoing Cash Flows From Finance Leases		26			19
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		294			6,266
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		29.4			31.05
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		13.1			13.75
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.27		%	3.35		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	28	$	133	$	72
Interest on Lease Liabilities	49		28		148		71
Operating Lease Cost	214		211		624		577
Short-term Lease Cost	11		17		32		73
Variable Lease Cost	77		45		165		140
Total Lease Cost	$	395	$	329	$	1,102	$	933

Future Lease Payments at September 30, 2020 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
9/30/2021	$	781	$	243
9/30/2022	665		243
9/30/2023	601		243
9/30/2024	590		247
9/30/2025	551		259
Thereafter	3,773		7,867
Total Undiscounted Cash Flows	$	6,961	$	9,102
Less: Net Present Value Adjustment	1,384		3,874
Lease Liability	$	5,577	$	5,228