Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES (Dollars In Thousands)

The following table is the schedule of Available-For-Sale Securities at December 31, 2022 and 2021:

Available-For-Sale Securities
	U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
December 31, 2022
Available-For-Sale Securities,   at Amortized Cost	$	190,000	$	340	$	447,755	$	1,000	$	639,095
Gross Unrealized Gains	15		—		65		—		80
Gross Unrealized Losses	(14,816)		—		(50,664)		(200)		(65,680)
Available-For-Sale Securities,   at Fair Value	$	175,199	$	340	$	397,156	$	800	$	573,495
Available-For-Sale Securities,   Pledged as Collateral,   at Fair Value									308,266
Maturities of Debt Securities, at Amortized Cost:
Within One Year	—		20		690		—		710
From 1 - 5 Years	190,000		—		241,322		—		431,322
From 5 - 10 Years	—		320		205,743		1,000		207,063
Over 10 Years	—		—		—		—		—
Maturities of Debt Securities, at Fair Value:
Within One Year	—		20		667		—		687
From 1 - 5 Years	175,199		—		222,112		—		397,311
From 5 - 10 Years	—		320		174,377		800		175,497
Over 10 Years	—		—		—		—		—
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	66,690	$	—	$	183,868	$	—	$	250,558
12 Months or Longer	93,493		—		199,262		800		293,555
Total	$	160,183	$	—	$	383,130	$	800	$	544,113
Number of Securities in a   Continuous Loss Position	23		—		150		1		174
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	3,310	$	—	$	18,756	$	—	$	22,066
12 Months or Longer	11,506		—		31,908		200		43,614
Total	$	14,816	$	—	$	50,664	$	200	$	65,680
Disaggregated Details:
US Agency Obligations,   at Amortized Cost	190,000
US Agency Obligations,   at Fair Value	175,199
US Government Agency   Securities, at Amortized Cost					$	7,934
US Government Agency   Securities, at Fair Value					7,433
Government Sponsored Entity   Securities, at Amortized Cost					439,821
Government Sponsored Entity   Securities, at Fair Value					389,723

Available-For-Sale Securities
	U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
December 31, 2021
Available-For-Sale Securities,   at Amortized Cost	$	110,000	$	400	$	448,742	$	1,000	$	560,142
Gross Unrealized Gains	63		—		3,617		—		3,680
Gross Unrealized Losses	(1,698)		—		(2,608)		(200)		(4,506)
Available-For-Sale Securities,   at Fair Value	$	108,365	$	400	$	449,751	$	800	$	559,316
Available-For-Sale Securities,   Pledged as Collateral,   at Fair Value									298,106
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	74,088	$	—	$	263,292	$	—	$	337,380
12 Months or Longer	29,214		—		—		800		30,014
Total	$	103,302	$	—	$	263,292	$	800	$	367,394
Number of Securities in a   Continuous Loss Position	14		—		39		1		54
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	912	$	—	$	2,608	$	—	$	3,520
12 Months or Longer	786		—		—		200		986
Total	$	1,698	$	—	$	2,608	$	200	$	4,506
Disaggregated Details:
US Agency Obligations,   at Amortized Cost	$	110,000
US Agency Obligations,   at Fair Value	108,365
US Government Agency   Securities, at Amortized Cost					$	9,386
US Government Agency   Securities, at Fair Value					9,371
Government Sponsored Entity   Securities, at Amortized Cost					439,356
Government Sponsored Entity   Securities, at Fair Value					440,380

At December 31, 2022, there was no allowance for credit losses for the available for sale securities portfolio.

The following table is the schedule of Held-To-Maturity Securities at December 31, 2022 and 2021:

Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
December 31, 2022
Held-To-Maturity Securities,   at Amortized Cost	$	163,600	$	11,764	$	175,364
Gross Unrealized Gains	1		—		1
Gross Unrealized Losses	(3,131)		(611)		(3,742)
Held-To-Maturity Securities,   at Fair Value	$	160,470	$	11,153	$	171,623
Held-To-Maturity Securities,   Pledged as Collateral, at Fair Value					142,982
Maturities of Debt Securities, at Amortized Cost:
Within One Year	52,522		—		52,522
From 1 - 5 Years	108,233		11,764		119,997
From 5 - 10 Years	2,806		—		2,806
Over 10 Years	39		—		39
Maturities of Debt Securities, at Fair Value:
Within One Year	52,233		—		52,233
From 1 - 5 Years	105,414		11,153		116,567
From 5 - 10 Years	2,784		—		2,784
Over 10 Years	39		—		39
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	137,773	$	11,153	$	148,926
12 Months or Longer	—		—		—
Total	$	137,773	$	11,153	$	148,926
Number of Securities in a   Continuous Loss Position	397		16		413
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	3,131	$	611	$	3,742
12 Months or Longer	—		—		—
Total	$	3,131	$	611	$	3,742
Disaggregated Details:
US Government Agency   Securities, at Amortized Cost			3,898
US Government Agency   Securities, at Fair Value			3,687
Government Sponsored Entity   Securities, at Amortized Cost			7,866
Government Sponsored Entity   Securities, at Fair Value			7,466

Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
December 31, 2021
Held-To-Maturity Securities,   at Amortized Cost	$	180,195	$	16,371	$	196,566
Gross Unrealized Gains	4,179		547		4,726
Gross Unrealized Losses	—		—		—
Held-To-Maturity Securities,   at Fair Value	$	184,374	$	16,918	$	201,292
Held-To-Maturity Securities,   Pledged as Collateral, at Fair Value					175,218
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	—	$	—	$	—
12 Months or Longer	—		—		—
Total	$	—	$	—	$	—
Number of Securities in a   Continuous Loss Position	—		—		—
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	—
12 Months or Longer	—		—		—
Total	$	—	$	—	$	—
Disaggregated Details:
US Government Agency   Securities, at Amortized Cost			5,518
US Government Agency   Securities, at Fair Value			5,647
Government Sponsored Entity   Securities, at Amortized Cost			10,853
Government Sponsored Entity   Securities, at Fair Value			11,271

In the tables above, maturities of mortgage-backed securities are included based on their contractual average lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Securities in a continuous loss position, in the tables above for December 31, 2022 and December 31, 2021 do not reflect any deterioration of the credit worthiness of the issuing entities.

Arrow evaluates available-for-sale debt securities in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized within the allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings via credit loss expense. Arrow determined that at December 31, 2022, gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Arrow does not intend to sell, nor is it more likely than not that Arrow will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. Therefore, Arrow carried no allowance for credit loss at December 31, 2022 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during 2022.  

Arrow's held to maturity debt securities are comprised of securities issued by U.S. government agencies or U.S. government-sponsored enterprises or state and municipal obligations. U.S. government agencies and U.S. government-sponsored enterprise securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Arrow determined that the expected credit loss on its held to maturity debt portfolio was immaterial and therefore no allowance for credit loss was recorded as of December 31, 2022.

The following table is the schedule of Equity Securities at December 31, 2022 and 2021.

Equity Securities
	December 31,
	2022		2021
Equity Securities, at Fair Value	$	2,174	$	1,747

The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the years ended December 31, 2022 and 2021:

	December 31,
	2022		2021
Net Gain (Loss) on Equity Securities	$	427	$	111
Less: Net Gain (Loss) recognized during the reporting period on equity securities sold during the period	—		—
Unrealized Net Gain (Loss) recognized during the reporting period on equity securities still held at the reporting date	$	427	$	111

Schedule of Federal Reserve Bank and Federal Home Loan Bank Stock (at cost)

	December 31,
	2022		2021
Federal Reserve Bank Stock	$	1,180	$	1,161
Federal Home Loan Bank Stock	4,884		4,219
Total Federal Reserve Bank and Federal Home Loan Bank Stock	$	6,064	$	5,380