Leases

12 Months Ended

Dec. 31, 2020

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

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 or 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. Additional information regarding this relationship can be found in Arrow's Proxy Statement for its Annual Meeting of Shareholders to be held May 6, 2020 under the caption "Corporate Governance - Related Party Transactions."

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


		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2020			December 31, 2019
Right-of-Use Assets	Premises and Equipment, Net	$	4,991		$	5,171
Lease Liabilities	Finance Leases	5,217			5,254

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,326		$	5,644
Lease Liabilities	Other Liabilities	5,410			5,713

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	196		$	99
Operating Outgoing Cash Flows From Operating Leases		778			779
Financing Outgoing Cash Flows From Finance Leases		37			28
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.)		29.17			30.80
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		13.05			13.71
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.28		%	3.35		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-use assets	$	44	$	28	$	177	$	100
Interest on Lease Liabilities	48		28		196		99
Operating Lease Cost	214		218		838		795
Short-term Lease Cost	8		12		40		85
Variable Lease Cost	39		65		204		205
Total Lease Cost	$	353	$	351	$	1,455	$	1,284


Future Lease Payments at December 31, 2020 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2021	$	743	$	243
12/31/2022	643		243
12/31/2023	602		243
12/31/2024	580		249
12/31/2025	539		263
Thereafter	3,644		7,800
Total Undiscounted Cash Flows	6,751		9,041
Less: Net Present Value Adjustment	1,341		3,824
Lease Liability	$	5,410	$	5,217

Leases

LEASES (Dollars In Thousands)

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


		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2020			December 31, 2019
Right-of-Use Assets	Premises and Equipment, Net	$	4,991		$	5,171
Lease Liabilities	Finance Leases	5,217			5,254

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,326		$	5,644
Lease Liabilities	Other Liabilities	5,410			5,713

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	196		$	99
Operating Outgoing Cash Flows From Operating Leases		778			779
Financing Outgoing Cash Flows From Finance Leases		37			28
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.)		29.17			30.80
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		13.05			13.71
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.28		%	3.35		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-use assets	$	44	$	28	$	177	$	100
Interest on Lease Liabilities	48		28		196		99
Operating Lease Cost	214		218		838		795
Short-term Lease Cost	8		12		40		85
Variable Lease Cost	39		65		204		205
Total Lease Cost	$	353	$	351	$	1,455	$	1,284


Future Lease Payments at December 31, 2020 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2021	$	743	$	243
12/31/2022	643		243
12/31/2023	602		243
12/31/2024	580		249
12/31/2025	539		263
Thereafter	3,644		7,800
Total Undiscounted Cash Flows	6,751		9,041
Less: Net Present Value Adjustment	1,341		3,824
Lease Liability	$	5,410	$	5,217