Leases

3 Months Ended

Mar. 31, 2021

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 three months ended March 31, 2021 and March 31, 2020:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2021			March 31, 2020
Right-of-Use Assets	Premises and Equipment, Net	$	4,947		$	5,124
Lease Liabilities	Finance Leases	5,205			5,249
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,435		$	5,529
Lease Liabilities	Other Liabilities	5,522			5,602
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	49		$	50
Operating Outgoing Cash Flows From Operating Leases		261			158
Financing Outgoing Cash Flows From Finance Leases		12			5
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		331			—
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		28.9			29.9
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		12.5			13.7
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.13		%	3.36		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2021		March 31, 2020
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		50
Operating Lease Cost	209		207
Short-term Lease Cost	5		7
Variable Lease Cost	104		55
Total Lease Cost	$	411	$	363

Future Lease Payments at March 31, 2021 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2022	$	799	$	243
3/31/2023	766		243
3/31/2024	641		243
3/31/2025	570		254
3/31/2026	526		265
Thereafter	3,516		7,733
Total Undiscounted Cash Flows	$	6,818	$	8,981
Less: Net Present Value Adjustment	1,296		3,776
Lease Liability	$	5,522	$	5,205

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 three months ended March 31, 2021 and March 31, 2020:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2021			March 31, 2020
Right-of-Use Assets	Premises and Equipment, Net	$	4,947		$	5,124
Lease Liabilities	Finance Leases	5,205			5,249
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,435		$	5,529
Lease Liabilities	Other Liabilities	5,522			5,602
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	49		$	50
Operating Outgoing Cash Flows From Operating Leases		261			158
Financing Outgoing Cash Flows From Finance Leases		12			5
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		331			—
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		28.9			29.9
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		12.5			13.7
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.13		%	3.36		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2021		March 31, 2020
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		50
Operating Lease Cost	209		207
Short-term Lease Cost	5		7
Variable Lease Cost	104		55
Total Lease Cost	$	411	$	363

Future Lease Payments at March 31, 2021 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2022	$	799	$	243
3/31/2023	766		243
3/31/2024	641		243
3/31/2025	570		254
3/31/2026	526		265
Thereafter	3,516		7,733
Total Undiscounted Cash Flows	$	6,818	$	8,981
Less: Net Present Value Adjustment	1,296		3,776
Lease Liability	$	5,522	$	5,205