Fair Values (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Measurements, Recurring and Nonrecurring

The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement:


Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
			Fair Value Measurements at Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Fair Value of Assets and Liabilities Measured on a Recurring Basis:
September 30, 2020
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	35,167	$	—	$	35,167	$	—
State and Municipal Obligations	593		—		593		—
Mortgage-Backed Securities	338,368		—		338,368		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	374,928		—		374,928		—
Equity Securities	1,511		—		1,511		—
Total Securities Measured on a Recurring Basis	376,439		—		376,439		—
Derivatives, included in other assets	6,366		—		6,366		—
Total Measured on a Recurring Basis	$	382,805	$	—	$	382,805	$	—
Liabilities:
Derivatives, included in other liabilities	6,366		—		6,366		—
Total Measured on a Recurring Basis	$	6,366	$	—	$	6,366	$	—
December 31, 2019
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	5,054	$	—	$	5,054	$	—
State and Municipal Obligations	764		—		764		—
Mortgage-Backed Securities	350,716		—		350,716		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	357,334		—		357,334		—
Equity Securities	2,063		—		2,063		—


Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
			Fair Value Measurements at Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Total Securities Measured on a Recurring Basis	359,397		—		359,397		—
Derivatives, included in other liabilities	69		—		69		—
Total Measured on a Recurring Basis	$	359,466	$	—	$	359,466	$	—
Liabilities:
Derivatives, included in other liabilities	$	69	$	—	$	69	$	—
Total Measured on a Recurring Basis	$	69	$	—	$	69	$	—
September 30, 2019
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	5,056	$	—	$	5,056	$	—
State and Municipal Obligations	965		—		965		—
Mortgage-Backed Securities	307,361		—		307,361		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	314,182		—		314,182		—
Equity Securities	1,996		—		1,996		—
Total Securities Measured on a Recurring Basis	$	316,178	$	—	$	316,178	$	—
Derivatives, included in other assets	498		$	—	498
Total Measured on a Recurring Basis	$	316,676	$	—	$	316,676	$	—
Liabilities:
Derivatives, included in other liabilities	498		—		498		—
Total Measured on a Recurring Basis	$	498	$	—	$	498	$	—


	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Losses Recognized in Earnings
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
September 30, 2020
Collateral Dependent Impaired Loans	$	594	$	—	$	—	$	594
Other Real Estate Owned and Repossessed Assets, Net	126		—		—		126		—
December 31, 2019
Collateral Dependent Impaired Loans	$	285	$	—	$	—	$	285
Other Real Estate Owned and Repossessed Assets, Net	1,261		—		—		1,261		(186)
September 30, 2019
Collateral Dependent Impaired Loans	$	324	$	—	$	—	$	324
Other Real Estate Owned and Repossessed Assets, Net	1,274		—		—		1,274		(111)

Fair Value, by Balance Sheet Grouping

The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments:


Schedule of Fair Values by Balance Sheet Grouping
					Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
September 30, 2020
Cash and Cash Equivalents	$	450,666	$	450,666	$	450,666	$	—	$	—
Securities Available-for-Sale	374,928		374,928		—		374,928		—
Securities Held-to-Maturity	224,799		233,501		—		233,501		—
Equity Securities	1,511		1,511		—		1,511		—
Federal Home Loan Bank and Federal Reserve Bank Stock	5,574		5,574		—		5,574		—
Net Loans	2,564,009		2,560,043		—		—		2,560,043
Accrued Interest Receivable	7,962		7,962		—		7,962		—
Derivatives, included in other assets	6,366		6,366				6,366
Deposits	3,264,858		3,265,208		—		3,265,208		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	73,949		73,949		—		73,949		—

Federal Home Loan Bank Term Advances	50,000		51,576		—		51,576		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	841		841		—		841		—
Derivatives, included in other liabilities	6,366		6,366		—		6,366		—


Schedule of Fair Values by Balance Sheet Grouping
					Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3

December 31, 2019
Cash and Cash Equivalents	$	70,221	$	70,221	$	70,221	$	—	$	—
Securities Available-for-Sale	357,334		357,334		—		357,334		—
Securities Held-to-Maturity	245,065		249,618		—		249,618		—
Equity Securities	2,063		2,063		—		2,063
Federal Home Loan Bank and Federal Reserve Bank Stock	10,317		10,317		—		10,317		—
Net Loans	2,364,933		2,332,797		—		—		2,332,797
Accrued Interest Receivable	7,377		7,377		—		7,377		—
Derivatives, included in other assets	69		69		—		69		—
Deposits	2,616,054		2,614,170		—		2,614,170		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	51,099		51,099		—		51,099		—
Federal Home Loan Bank Overnight Advances	130,000		130,000		—		130,000		—
Federal Home Loan Bank Term Advances	30,000		29,993		—		29,993		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	1,436		1,436		—		1,436		—
Derivatives, included in other liabilities	69		69		—		69		—

September 30, 2019
Cash and Cash Equivalents	$	92,298	$	92,298	$	92,298	$	—	$	—
Securities Available-for-Sale	314,182		314,182		—		314,182		—
Securities Held-to-Maturity	255,095		259,128		—		259,128		—
Equity Securities	1,996		1,996		—		1,996
Federal Home Loan Bank and Federal Reserve Bank Stock	6,627		6,627		—		6,627		—
Net Loans	2,314,660		2,274,701		—		—		2,274,701
Accrued Interest Receivable	8,097		8,097		—		8,097		—
Derivatives, included in other assets	498		498		—		498		—
Deposits	2,614,547		2,610,404		—		2,610,404		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	72,869		72,869		—		72,869		—
Federal Home Loan Bank Overnight Advances	48,000		48,000		—		48,000		—
Federal Home Loan Bank Term Advances	30,000		29,988		—		29,988		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	1,500		1,500		—		1,500		—
Derivatives, included in other liabilities	498		498		—		498		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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