Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

LEASES (Dollars In Thousands)

Arrow is a lessee in its leases, which are mainly for financial services locations in addition to leases for corporate vehicles. These leases generally require Arrow to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, Arrow pays the variable payments to the lessor, and in other leases, Arrow pays the variable payments directly to the applicable third party. None of Arrow's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of Arrow for leases that have not commenced as of the reporting date.

Arrow leases two 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.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2022 and March 31, 2021:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2022			March 31, 2021
Right-of-Use Assets	Premises and Equipment, Net	$	4,770		$	4,947
Lease Liabilities	Finance Leases	5,156			5,205
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	6,676		$	5,435
Lease Liabilities	Other Liabilities	6,863			5,522
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	49		$	49
Operating Outgoing Cash Flows From Operating Leases		260			261
Financing Outgoing Cash Flows From Finance Leases		13			12
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.)		28.0			28.9
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.2			12.5
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.81		%	3.13		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2022		March 31, 2021
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		49
Operating Lease Cost	312		209
Short-term Lease Cost	10		5
Variable Lease Cost	95		104
Total Lease Cost	$	510	$	411

Future Lease Payments at March 31, 2022 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2023	$	1,206	$	243
3/31/2024	904		243
3/31/2025	732		254
3/31/2026	682		265
3/31/2027	618		268
Thereafter	4,053		7,465
Total Undiscounted Cash Flows	$	8,195	$	8,738
Less: Net Present Value Adjustment	1,332		3,582
Lease Liability	$	6,863	$	5,156

Leases

LEASES (Dollars In Thousands)

Arrow is a lessee in its leases, which are mainly for financial services locations in addition to leases for corporate vehicles. These leases generally require Arrow to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, Arrow pays the variable payments to the lessor, and in other leases, Arrow pays the variable payments directly to the applicable third party. None of Arrow's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of Arrow for leases that have not commenced as of the reporting date.

Arrow leases two 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.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2022 and March 31, 2021:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2022			March 31, 2021
Right-of-Use Assets	Premises and Equipment, Net	$	4,770		$	4,947
Lease Liabilities	Finance Leases	5,156			5,205
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	6,676		$	5,435
Lease Liabilities	Other Liabilities	6,863			5,522
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	49		$	49
Operating Outgoing Cash Flows From Operating Leases		260			261
Financing Outgoing Cash Flows From Finance Leases		13			12
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.)		28.0			28.9
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.2			12.5
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.81		%	3.13		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended
	March 31, 2022		March 31, 2021
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		49
Operating Lease Cost	312		209
Short-term Lease Cost	10		5
Variable Lease Cost	95		104
Total Lease Cost	$	510	$	411

Future Lease Payments at March 31, 2022 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2023	$	1,206	$	243
3/31/2024	904		243
3/31/2025	732		254
3/31/2026	682		265
3/31/2027	618		268
Thereafter	4,053		7,465
Total Undiscounted Cash Flows	$	8,195	$	8,738
Less: Net Present Value Adjustment	1,332		3,582
Lease Liability	$	6,863	$	5,156