Fair Values (Tables)

9 Months Ended

Sep. 30, 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:
September 30, 2021
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	109,305	$	—	$	109,305	$	—
State and Municipal Obligations	400		—		400		—
Mortgage-Backed Securities	376,395		—		376,395		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	486,900		—		486,900		—
Equity Securities	1,886		—		1,886		—
Total Securities Measured on a Recurring Basis	488,786		—		488,786		—
Derivatives, included in other assets	2,287		—		2,287		—
Total Measured on a Recurring Basis	$	491,073	$	—	$	491,073	$	—
Liabilities:
Derivatives, included in other liabilities	2,287		—		2,287		—
Total Measured on a Recurring Basis	$	2,287	$	—	$	2,287	$	—
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	$	—
September 30, 2020
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	35,167	$	—	$	35,167	$	—
State and Municipal Obligations	593		—		593		—
Mortgage-Backed Securities	338,368		—		338,368		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	374,928		—		374,928		—
Equity Securities	1,511		—		1,511		—
Total Securities Measured on a Recurring Basis	$	376,439	$	—	$	376,439	$	—
Derivatives, included in other assets	6,366		$	—	6,366		—
Total Measured on a Recurring Basis	$	382,805	$	—	$	382,805	$	—
Liabilities:
Derivatives, included in other liabilities	6,366		—		6,366		—
Total Measured on a Recurring Basis	$	6,366	$	—	$	6,366	$	—


	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Gains (Losses) Recognized in Earnings
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
September 30, 2021
Collateral Dependent Evaluated Loans	$	2,456	$	—	$	—	$	2,456
Other Real Estate Owned and Repossessed Assets, Net	351		—		—		351		13
December 31, 2020
Collateral Dependent Impaired Loans	$	594	$	—	$	—	$	594
Other Real Estate Owned and Repossessed Assets, Net	155		—		—		155		—
September 30, 2020
Collateral Dependent Impaired Loans	$	594	$	—	$	—	$	594
Other Real Estate Owned and Repossessed Assets, Net	126		—		—		126		—

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
September 30, 2021
Cash and Cash Equivalents	$	598,366	$	598,366	$	598,366	$	—	$	—
Securities Available-for-Sale	486,900		486,900		—		486,900		—
Securities Held-to-Maturity	198,337		203,936		—		203,936		—
Equity Securities	1,886		1,886		—		1,886		—
Federal Home Loan Bank and Federal Reserve Bank Stock	5,380		5,380		—		5,380		—
Net Loans	2,627,795		2,632,843		—		—		2,632,843
Accrued Interest Receivable	7,899		7,899		—		7,899		—
Derivatives, included in other assets	2,287		2,287				2,287
Deposits	3,605,563		3,604,271		—		3,604,271		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	2,426		2,426		—		2,426		—

Federal Home Loan Bank Term Advances	45,000		45,906		—		45,906		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	137		137		—		137		—
Derivatives, included in other liabilities	2,287		2,287		—		2,287		—


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		—

September 30, 2020
Cash and Cash Equivalents	$	450,666	$	450,666	$	450,666	$	—	$	—
Securities Available-for-Sale	374,928		374,928		—		374,928		—
Securities Held-to-Maturity	224,799		233,501		—		233,501		—
Equity Securities	1,511		1,511		—		1,511
Federal Home Loan Bank and Federal Reserve Bank Stock	5,574		5,574		—		5,574		—
Net Loans	2,564,009		2,560,043		—		—		2,560,043
Accrued Interest Receivable	7,962		7,962		—		7,962		—
Derivatives, included in other assets	6,366		6,366		—		6,366		—
Deposits	3,264,858		3,265,208		—		3,265,208		—
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase	73,949		73,949		—		73,949		—

Federal Home Loan Bank Term Advances	50,000		51,576		—		51,576		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	841		841		—		841		—
Derivatives, included in other liabilities	6,366		6,366		—		6,366		—

- 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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