Fair Values (Tables)

3 Months Ended

Mar. 31, 2021

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:
March 31, 2021
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	108,370	$	—	$	108,370	$	—
State and Municipal Obligations	508		—		508		—
Mortgage-Backed Securities	354,411		—		354,411		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	464,089		—		464,089		—
Equity Securities	1,796		—		1,796		—
Total Securities Measured on a Recurring Basis	465,885		—		465,885		—
Derivatives, included in other assets	2,298		—		2,298		—
Total Measured on a Recurring Basis	$	468,183	$	—	$	468,183	$	—
Liabilities:
Derivatives, included in other liabilities	2,298		—		2,298		—
Total Measured on a Recurring Basis	$	2,298	$	—	$	2,298	$	—
December 31, 2020
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	65,112	$	—	$	65,112	$	—
State and Municipal Obligations	528		—		528		—
Mortgage-Backed Securities	298,847		—		298,847		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	365,287		—		365,287		—
Equity Securities	1,636		—		1,636		—


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	366,923		—		366,923		—
Derivatives, included in other liabilities	5,080		—		5,080		—
Total Measured on a Recurring Basis	$	372,003	$	—	$	372,003	$	—
Liabilities:
Derivatives, included in other liabilities	5,080		—		5,080		—
Total Measured on a Recurring Basis	$	5,080	$	—	$	5,080	$	—
March 31, 2020
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	5,181	$	—	$	5,181	$	—
State and Municipal Obligations	723		—		723		—
Mortgage-Backed Securities	371,482		—		371,482		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	378,186		—		378,186		—
Equity Securities	1,689		—		1,689		—
Total Securities Measured on a Recurring Basis	$	379,875	$	—	$	379,875	$	—
Derivatives, included in other assets	5,191		$	—	5,191		—
Total Measured on a Recurring Basis	$	385,066	$	—	$	385,066	$	—
Liabilities:
Derivatives, included in other liabilities	5,191		—		5,191		—
Total Measured on a Recurring Basis	$	5,191	$	—	$	5,191	$	—


	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:
March 31, 2021
Collateral Dependent Evaluated Loans	$	2,423	$	—	$	—	$	2,423
Other Real Estate Owned and Repossessed Assets, Net	242		—		—		242		—
December 31, 2020
Collateral Dependent Impaired Loans	$	594	$	—	$	—	$	594
Other Real Estate Owned and Repossessed Assets, Net	155		—		—		155		—
March 31, 2020
Collateral Dependent Impaired Loans	$	582	$	—	$	—	$	582
Other Real Estate Owned and Repossessed Assets, Net	942		—		—		942		—

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
March 31, 2021
Cash and Cash Equivalents	$	452,207	$	452,207	$	452,207	$	—	$	—
Securities Available-for-Sale	464,089		464,089		—		464,089		—
Securities Held-to-Maturity	214,561		221,360		—		221,360		—
Equity Securities	1,796		1,796		—		1,796		—
Federal Home Loan Bank and Federal Reserve Bank Stock	5,360		5,360		—		5,360		—
Net Loans	2,612,403		2,603,225		—		—		2,603,225
Accrued Interest Receivable	8,258		8,258		—		8,258		—
Derivatives, included in other assets	2,298		2,298				2,298
Deposits	3,453,588		3,452,595		—		3,452,595		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	6,795		6,795		—		6,795		—

Federal Home Loan Bank Term Advances	45,000		46,176		—		46,176		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	237		237		—		237		—
Derivatives, included in other liabilities	2,298		2,298		—		2,298		—


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

December 31, 2020
Cash and Cash Equivalents	$	380,991	$	380,991	$	380,991	$	—	$	—
Securities Available-for-Sale	365,287		365,287		—		365,287		—
Securities Held-to-Maturity	218,405		226,576		—		226,576		—
Equity Securities	1,636		1,636		—		1,636
Federal Home Loan Bank and Federal Reserve Bank Stock	5,349		5,349		—		5,349		—
Net Loans	2,565,798		2,558,903		—		—		2,558,903
Accrued Interest Receivable	7,495		7,495		—		7,495		—
Derivatives, included in other assets	5,080		5,080		—		5,080		—
Deposits	3,234,726		3,234,387		—		3,234,387		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	17,486		17,486		—		17,486		—
Federal Home Loan Bank Term Advances	45,000		46,474		—		46,474		—

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	326		326		—		326		—
Derivatives, included in other liabilities	5,080		5,080		—		5,080		—

March 31, 2020
Cash and Cash Equivalents	$	138,529	$	138,529	$	138,529	$	—	$	—
Securities Available-for-Sale	378,186		378,186		—		378,186		—
Securities Held-to-Maturity	238,520		242,804		—		242,804		—
Equity Securities	1,689		1,689		—		1,689
Federal Home Loan Bank and Federal Reserve Bank Stock	5,379		5,379		—		5,379		—
Net Loans	2,390,556		2,368,033		—		—		2,368,033
Accrued Interest Receivable	7,856		7,856		—		7,856		—
Derivatives, included in other assets	5,191		5,191		—		5,191		—
Deposits	2,811,005		2,811,668		—		2,811,668		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	57,909		57,909		—		57,909		—

Federal Home Loan Bank Term Advances	50,000		51,194		—		51,194		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	1,392		1,392		—		1,392		—
Derivatives, included in other liabilities	5,191		5,191		—		5,191		—

- 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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