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Regulatory Matters
 12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Regulatory Matters REGULATORY MATTERS (Dollars in Thousands)
In the normal course of business, Arrow and its subsidiaries operate under certain regulatory restrictions, such as the extent and structure of covered inter-company borrowings and maintenance of reserve requirement balances.
The principal source of the funds for the payment of stockholder dividends by Arrow has been from dividends declared and paid to Arrow by its bank subsidiaries.  As of December 31, 2020, the maximum amount that could have been paid by subsidiary banks to Arrow, without prior regulatory approval, was approximately $71.8 million.
Under current Federal Reserve regulations, Arrow is prohibited from borrowing from the subsidiary banks unless such borrowings are secured by specific obligations.  Additionally, the maximum of any such borrowings from any one subsidiary bank (aggregated with all other "covered transactions" between the bank and Arrow) is limited to 10% of that bank’s capital and surplus. Loans and other covered transactions between any one subsidiary bank and all of its affiliates cannot exceed 20% of that bank's capital and surplus.
Arrow and its subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory--and possibly additional discretionary--actions by regulators that, if undertaken, could have a direct material effect on an institution’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Arrow and its subsidiary banks must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
Current quantitative measures established by regulation to ensure capital adequacy require Arrow and its subsidiary banks to maintain minimum capital amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined).  Management believes, as of December 31, 2020 and 2019, that Arrow and both subsidiary banks meet all capital adequacy requirements to which they are subject. The regulatory capital requirements incorporate a capital concept, the so-called "capital conservation buffer" (set at 2.5%, after full phase-in), which must be added to each of the minimum required risk-based capital ratios (i.e., the minimum CET1 ratio, the minimum Tier 1 risk-based capital ratio and the minimum total risk-based capital ratio). As of January 1, 2019, the capital conservation buffer increased to 2.50% of risk weighted assets.
The federal bank regulators have issued a final rule to implement the Community Bank Leverage Ratio ("CBLR"), introducing an optional simplified measure of capital adequacy for qualifying community banks that satisfy certain requirements, including having a leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities.  A qualifying community bank that opts into the CBLR framework and meets all requirements under the CBLR framework will be considered to have met the well-capitalized ratio requirements under the “prompt corrective action” regulations and will not be required to report or calculate risk-based capital ratios.  The CBLR is calculated as the ratio of “tier 1 capital” divided by “average total consolidated assets.”  This final rule was effective as of January 1, 2020, and qualifying community banks can utilize the CBLR framework for purposes of filing their call reports or Form FR Y-9C, as applicable, for the first quarter of 2020 (i.e., as of March 31, 2020). Arrow elected to opt out of utilizing the CBLR framework. The Capital Rules promulgated under Dodd-Frank will remain applicable to Arrow.
As of December 31, 2020, Arrow and both subsidiary banks qualified as well-capitalized under the regulatory framework for prompt corrective action.  To be categorized as “well-capitalized,” Arrow and its subsidiary banks must maintain minimum total risk-based, Tier I risk-based, Tier I leverage, and CET1 risk-based ratios as set forth in the table below.  There are no conditions or events that management believes have changed Arrow’s or its subsidiary banks’ categories. The actual capital amounts and ratios for Arrow and its subsidiary banks, Glens Falls National Bank and Trust Company (“Glens Falls National”) and Saratoga National Bank and Trust Company (“Saratoga National”), are presented in the table below as of December 31, 2020 and 2019:
ActualMinimum Amounts For Capital Adequacy Purposes (including "capital conservation buffer")Minimum Amounts To Be Well-Capitalized
AmountRatioAmountRatioAmountRatio
As of December 31, 2020
Total Capital
 (to Risk Weighted Assets):
Arrow$364,988 15.5 %$247,250 10.5 %$235,476 10.0 %
Glens Falls National273,801 15.2 %189,139 10.5 %180,132 10.0 %
Saratoga National78,022 14.2 %57,692 10.5 %54,945 10.0 %
Tier I Capital
 (to Risk Weighted Assets):
Arrow335,756 14.2 %200,981 8.5 %189,158 8.0 %
Glens Falls National251,419 13.9 %153,745 8.5 %144,702 8.0 %
Saratoga National71,172 13.0 %46,536 8.5 %43,798 8.0 %
ActualMinimum Amounts For Capital Adequacy Purposes (including "capital conservation buffer")Minimum Amounts To Be Well-Capitalized
AmountRatioAmountRatioAmountRatio
Tier I Capital
 (to Average Assets):
Arrow335,756 9.1 %147,585 4.0 %184,481 5.0 %
Glens Falls National251,419 8.7 %115,595 4.0 %144,494 5.0 %
Saratoga National71,172 8.9 %31,987 4.0 %39,984 5.0 %
Common Equity Tier 1 Capital
 (to Risk Weighted Assets):
Arrow315,696 13.4 %164,916 7.0 %153,136 6.5 %
Glens Falls National251,359 13.9 %126,584 7.0 %117,542 6.5 %
Saratoga National71,172 13.0 %38,323 7.0 %35,586 6.5 %
As of December 31, 2019
Total Capital
 (to Risk Weighted Assets):
Arrow$330,657 14.8 %$234,588 10.5 %$223,417 10.0 %
Glens Falls National254,438 14.5 %184,248 10.5 %175,474 10.0 %
Saratoga National65,295 13.6 %50,412 10.5 %48,011 10.0 %
Tier I Capital
 (to Risk Weighted Assets):
Arrow309,469 13.8 %190,615 8.5 %179,402 8.0 %
Glens Falls National237,546 13.5 %149,566 8.5 %140,768 8.0 %
Saratoga National60,999 12.7 %40,826 8.5 %38,425 8.0 %
Tier I Capital
 (to Average Assets):
Arrow309,469 10.0 %123,788 4.0 %154,735 5.0 %
Glens Falls National237,546 9.5 %100,019 4.0 %125,024 5.0 %
Saratoga National60,999 9.6 %25,416 4.0 %31,770 5.0 %
Common Equity Tier 1 Capital
 (to Risk Weighted Assets):
Arrow289,409 12.9 %157,044 7.0 %145,826 6.5 %
Glens Falls National237,486 13.5 %123,141 7.0 %114,345 6.5 %
Saratoga National60,999 12.7 %33,621 7.0 %31,220 6.5 %