XML 55 R41.htm IDEA: XBRL DOCUMENT v3.20.4
Retirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The following tables set forth changes in the plans’ benefit obligations (projected benefit obligation for pension benefits and accumulated benefit obligation for postretirement benefits) and changes in the plans’ assets and the funded status of the pension plans and other postretirement benefit plan at December 31:

Schedule of Defined Benefit Plan Disclosures
Employees'
Pension
Plan
Select
Executive
Retirement
Plan
Postretirement
Benefit
Plans
Defined Benefit Plan Funded Status
December 31, 2020
Fair Value of Plan Assets$59,837 $— $— 
Benefit Obligation44,877 5,820 9,028 
Funded Status of Plan$14,960 $(5,820)$(9,028)
December 31, 2019
Fair Value of Plan Assets$57,051 $— $— 
Benefit Obligation42,322 5,194 8,652 
Funded Status of Plan$14,729 $(5,194)$(8,652)
Change in Benefit Obligation
Benefit Obligation, at January 1, 2020$42,322 $5,194 $8,652 
Service Cost 1
1,663 408 123 
Interest Cost 2
1,544 192 310 
Plan Participants' Contributions— — 454 
Amendments352 122 — 
Actuarial Loss2,901 369 151 
Benefits Paid(3,905)(465)(662)
Benefit Obligation, at December 31, 2020$44,877 $5,820 $9,028 
Benefit Obligation, at January 1, 2019$38,069 $4,710 $7,706 
Service Cost 1
1,527 324 121 
Interest Cost 2
1,765 217 364 
Plan Participants' Contributions— — 485 
Actuarial Loss2,960 409 670 
Benefits Paid(1,999)(466)(694)
Benefit Obligation, at December 31, 2019$42,322 $5,194 $8,652 
Change in Fair Value of Plan Assets
Fair Value of Plan Assets, at January 1, 2020$57,051 $— $— 
Actual Return on Plan Assets6,691 — — 
Employer Contributions— 465 208 
Plan Participants' Contributions— — 454 
Benefits Paid(3,905)(465)(662)
Fair Value of Plan Assets, at December 31, 2020$59,837 $— $— 
Fair Value of Plan Assets, at January 1, 2019$48,445 $— $— 
Actual Return on Plan Assets10,605 — — 
Employer Contributions— 466 209 
Plan Participants' Contributions— — 485 
Benefits Paid(1,999)(466)(694)
Fair Value of Plan Assets, at December 31, 2019$57,051 $— $— 
Accumulated Benefit Obligation at December 31, 2020$44,613 $5,740 $9,028 
Employees'
Pension
Plan
Select
Executive
Retirement
Plan
Postretirement
Benefit
Plans
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2020
Prepaid Pension Asset$14,960 $— — 
Accrued Benefit Liability— (5,820)(9,028)
Net Benefit Recognized$14,960 $(5,820)$(9,028)
December 31, 2019
Prepaid Pension Asset$14,729 $— — 
Accrued Benefit Liability— (5,194)(8,652)
Net Benefit Recognized$14,729 $(5,194)$(8,652)
Amounts Recognized in Other Comprehensive Income (Loss)
For the Year Ended December 31, 2020
Net Unamortized (Gain) Loss Arising During the Period$(182)$368 $151 
Net Prior Service Cost Arising During the Period349 123 — 
Amortization of Net Loss(81)(146)— 
Amortization of Prior Service Credit(63)(42)(106)
  Total Other Comprehensive Income for Pension and
Other Postretirement Benefit Plans
$23 $303 $45 
For the Year Ended December 31, 2019
Net Unamortized (Gain) Loss Arising During the Period$(4,584)$409 $670 
Amortization of Net (Loss) Gain(613)(113)42 
Amortization of Prior Service Cost(69)(54)(101)
  Total Other Comprehensive (Loss) Income for Pension and
Other Postretirement Benefit Plans
$(5,266)$242 $611 
For the Year Ended December 31, 2018
Net Unamortized Loss (Gain) Arising During the Period$4,480 $(17)$(665)
Net Prior Service Cost Arising During the Period— — 453 
Amortization of Net Gain(194)(131)— 
Amortization of Prior Service Credit (Cost)49(57)(100)
  Total Other Comprehensive Income (Loss) for Pension and
Other Postretirement Benefit Plans
$4,335 $(205)$(312)
Accumulated Other Comprehensive Income
December 31, 2020
Net Actuarial Loss (Gains)$5,482 $2,497 $(30)
Prior Service Cost533 459 578 
Total Accumulated Other Comprehensive Income, Before Tax$6,015 $2,956 $548 
December 31, 2019
Net Actuarial Loss (Gain)$5,745 $2,275 $(181)
Prior Service Cost244 378 685 
Total Accumulated Other Comprehensive Income, Before Tax$5,989 $2,653 $504 
Amounts that will be Amortized from Accumulated
Other Comprehensive Income the Next Year
Net Actuarial Loss$— $153 $30 
Prior Service Cost$78 $48 $106 
Employees'
Pension
Plan
Select
Executive
Retirement
Plan
Postretirement
Benefit
Plans
Net Periodic Benefit Cost
For the Year Ended December 31, 2020
Service Cost 1
$1,663 $408 $123 
Interest Cost 2
1,544 192 310 
Expected Return on Plan Assets 2
(3,608)— — 
Amortization of Prior Service Cost 2
63 42 106 
Amortization of Net Loss 2
81 146 — 
Net Periodic Benefit Cost$(257)$788 $539 
For the Year Ended December 31, 2019
Service Cost 1
$1,527 $324 $121 
Interest Cost 2
1,765 217 364 
Expected Return on Plan Assets 2
(3,060)— — 
Amortization of Prior Service Cost 2
69 54 101 
Amortization of Net Loss 2
613 113 (42)
Net Periodic Benefit Cost$914 $708 $544 
For the Year Ended December 31, 2018
Service Cost 1
$1,557 $414 $136 
Interest Cost 2
1,598 192 333 
Expected Return on Plan Assets 2
(3,362)— — 
Amortization of Prior Service (Credit) Cost 2
(49)57 100 
Amortization of Net Loss 2
194 131 — 
Net Periodic Benefit (Credit) Cost$(62)$794 $569 
Weighted-Average Assumptions Used in
Calculating Benefit Obligation
December 31, 2020
Discount Rate3.14 %3.19 %3.17 %
Rate of Compensation Increase3.50 %3.50 %3.50 %
Interest Rate Credit for Determining
Projected Cash Balance Account
3.00 %3.00 %
Interest Rates segments to Annuitize Cash
      Balance Account (Segment 1, Segment 2 and Segment 3,
respectively)
0.53%, 2.31% and 3.09%
0.53%, 2.31% and 3.09%
Interest Rates to Convert Annuities to Actuarially
Equivalent Lump Sum Amounts (Segment 1, Segment 2 and
Segment 3, respectively)
0.53%,2.31% and 3.09%
0.53%, 2.31% and 3.09%
December 31, 2019
Discount Rate3.72 %3.75 %3.76 %
Rate of Compensation Increase3.50 %3.50 %3.50 %
Interest Rate Credit for Determining
Projected Cash Balance Account
3.00 %3.00 %
Employees'
Pension
Plan
Select
Executive
Retirement
Plan
Postretirement
Benefit
Plans
Weighted-Average Assumptions Used in
Calculating Net Periodic Benefit Cost
December 31, 2020
Discount Rate3.72 %3.75 %3.76 %
Expected Long-Term Return on Plan Assets6.50 %
Rate of Compensation Increase3.50 %3.50 %3.50 %
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00 %3.00 %
Interest Rates to Annuitize Cash
    Balance Account (Segment 1, Segment 2, and Segment 3,
respectively)
0.53%, 2.31% and 3.09%
0.53%, 2.31% and 3.09%
Interest Rates to Convert Annuities to Actuarially
Equivalent Lump Sum Amounts (Segment 1, Segment 2 and
Segment 3, respectively)
0.53%, 2.31% and 3.09%
0.53%, 2.31% and 3.09%
December 31, 2019
Discount Rate4.81 %4.80 %4.81 %
Expected Long-Term Return on Plan Assets6.50 %
Rate of Compensation Increase3.50 %3.50 %3.50 %
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00 %3.00 %
December 31, 2018
Discount Rate4.24 %4.18 %4.22 %
Expected Long-Term Return on Plan Assets6.50 %
Rate of Compensation Increase3.50 %3.50 %3.50 %
Interest Rate Credit for Determining
      Projected Cash Balance Account
3.00 %3.00 %
Footnotes:
1.Included in Salaries and Employee Benefits on the Consolidated Statements of Income
2.Included in Other Operating Expense on the Consolidated Statements of Income
Schedule of Defined Benefit Plan Disclosures
Information about Defined Benefit Plan Assets - Employees' Pension Plan
Fair Value Measurements Using:
Asset CategoryQuoted Prices
in Active Markets
for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
TotalPercent of TotalTarget Allocation MinimumTarget Allocation Maximum
December 31, 2020
Cash$— $— $— $— — %— %15.0 %
Interest-Bearing Money Market Fund1,124 — — 1,124 1.9 %— %15.0 %
Arrow Common Stock1
5,332 — — 5,332 8.9 %— %10.0 %
North Country Funds - Equity 2
25,741 — — 25,741 43.0 %
Other Mutual Funds - Equity17,336 — — 17,336 29.0 %
Total Equity Funds43,077 — — 43,077 72.0 %55.0 %85.0 %
North Country Funds - Fixed income 2
8,534 — — 8,534 14.3 %
Other Mutual Funds - Fixed Income805 — — 805 1.3 %
Total Fixed Income Funds9,339 — — 9,339 15.6 %10.0 %30.0 %
Alternative ETF965 — — 965 1.6 %— %20.0 %
  Total$59,837 $— $— $59,837 100.0 %
December 31, 2019
Cash$— $— $— $— — %— %15.0 %
Interest-Bearing Money Market Fund2,742 — — 2,742 4.8 %— %15.0 %
Arrow Common Stock1
6,542 — — 6,542 11.5 %— %10.0 %
North Country Funds - Equity 2
21,209 — — 21,209 37.2 %
Other Mutual Funds - Equity15,868 — — 15,868 27.8 %
Total Equity Funds37,077 — — 37,077 65.0 %55.0 %85.0 %
North Country Funds - Fixed income 2
8,692 — — 8,692 15.2 %
Other Mutual Funds - Fixed Income793 — — 793 1.4 %
Total Fixed Income Funds9,485 — — 9,485 16.6 %10.0 %30.0 %
Alternative ETF1,205 — — 1,205 2.1 %— %20.0 %
Total$57,051 $— $— $57,051 100.0 %

Footnotes:
1 Payment for the acquisition of Arrow Financial Corporation common stock was under 10% of the total fair value of the employee's pension plan assets at the time of acquisition.
2 The North Country Funds - Equity and the North Country Funds - Fixed Income are publicly traded mutual funds advised by Arrow's subsidiary, North Country Investment Advisers, Inc.
Schedule of Defined Benefit Plan Disclosures
Employees'
Pension
Plan
Select
Executive
Retirement
Plan
Postretirement
Benefit
Plans
Expected Future Benefit Payments
2021$2,739 $453 $694 
20222,604 433 684 
20233,235 412 664 
20243,068 580 663 
20253,417 559 675 
2026 - 203015,146 2,476 3,280 
Estimated Contributions During 2021$— $453 $694 
Assumed Health Care Cost Trend Rates
December 31, 2020
Health Care Cost Trend
  Rate Assumed for Next Year
7.00 %
Rate to which the Cost Trend
  Rate is Assumed to Decline
  (the Ultimate Trend Rate)
3.78 %
Year that the Rate Reaches
   the Ultimate Trend Rate
2075
December 31, 2019
Health Care Cost Trend
  Rate Assumed for Next Year
6.75 %
Rate to which the Cost Trend
  Rate is Assumed to Decline
  (the Ultimate Trend Rate)
3.78 %
Year that the Rate Reaches
   the Ultimate Trend Rate
2075