Leases

6 Months Ended

Jun. 30, 2021

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. Arrow also leases one administrative office from an entity controlled by Elizabeth Miller, who serves as a director on the board of directors of each of Arrow and Glens Falls National Bank and Trust Company.

The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2021 and June 30, 2020:


		Six Months Ended
Finance Lease Amounts:	Classification	June 30, 2021			June 30, 2020
Right-of-Use Assets	Premises and Equipment, Net	$	4,903		$	5,080
Lease Liabilities	Finance Leases	5,193			5,239

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,661		$	5,640
Lease Liabilities	Other Liabilities	5,832			5,718

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	98		$	99
Operating Outgoing Cash Flows From Operating Leases		383			355
Financing Outgoing Cash Flows From Finance Leases		24			15
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		805			269
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		28.7			29.7
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		12.15			13.2
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.08		%	3.27		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	45	$	45	$	89	$	89
Interest on Lease Liabilities	49		49		98		99
Operating Lease Cost	290		203		499		410
Short-term Lease Cost	8		14		13		21
Variable Lease Cost	30		33		134		88
Total Lease Cost	$	422	$	344	$	833	$	707


Future Lease Payments at June 30, 2021 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
6/30/2022	$	883	$	243
6/30/2023	837		243
6/30/2024	668		244
6/30/2025	581		257
6/30/2026	528		266
Thereafter	3,694		7,666
Total Undiscounted Cash Flows	$	7,191	$	8,919
Less: Net Present Value Adjustment	1,359		3,726
Lease Liability	$	5,832	$	5,193

Leases

LEASES (Dollars In Thousands)

The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2021 and June 30, 2020:


		Six Months Ended
Finance Lease Amounts:	Classification	June 30, 2021			June 30, 2020
Right-of-Use Assets	Premises and Equipment, Net	$	4,903		$	5,080
Lease Liabilities	Finance Leases	5,193			5,239

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,661		$	5,640
Lease Liabilities	Other Liabilities	5,832			5,718

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	98		$	99
Operating Outgoing Cash Flows From Operating Leases		383			355
Financing Outgoing Cash Flows From Finance Leases		24			15
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		805			269
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		28.7			29.7
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		12.15			13.2
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.08		%	3.27		%


Lease cost information for the Company's leases is as follows:
	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	45	$	45	$	89	$	89
Interest on Lease Liabilities	49		49		98		99
Operating Lease Cost	290		203		499		410
Short-term Lease Cost	8		14		13		21
Variable Lease Cost	30		33		134		88
Total Lease Cost	$	422	$	344	$	833	$	707


Future Lease Payments at June 30, 2021 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
6/30/2022	$	883	$	243
6/30/2023	837		243
6/30/2024	668		244
6/30/2025	581		257
6/30/2026	528		266
Thereafter	3,694		7,666
Total Undiscounted Cash Flows	$	7,191	$	8,919
Less: Net Present Value Adjustment	1,359		3,726
Lease Liability	$	5,832	$	5,193