Leases

12 Months Ended

Dec. 31, 2022

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [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 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 or obligations of the Company 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 the two subsidiary banks. 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 the two subsidiary banks. Additional information regarding these relationships can be found in Part III, Item 13 under the caption "Related Party Transactions."

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2022 and December 31, 2021:

		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2022			December 31, 2021
Right-of-Use Assets	Premises and Equipment, Net	$	4,637		$	4,814
Lease Liabilities	Finance Leases	5,119			5,169
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,627		$	6,941
Lease Liabilities	Other Liabilities	5,822			7,124
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	193		$	195
Operating Outgoing Cash Flows From Operating Leases		1,301			794
Financing Outgoing Cash Flows From Finance Leases		50			48
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		—			2,508
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		27.24			28.20
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.14			11.17
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.92		%	2.86		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-Use Assets	$	44	$	44	$	177	$	177
Interest on Lease Liabilities	48		49		193		195
Operating Lease Cost	304		270		1,229		1,007
Short-term Lease Cost	15		19		47		47
Variable Lease Cost	81		67		334		270
Total Lease Cost	$	492	$	449	$	1,980	$	1,696

Future Lease Payments at December 31, 2022 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2023	$	964	$	243
12/31/2024	699		249
12/31/2025	637		263
12/31/2026	574		268
12/31/2027	545		268
Thereafter	3,577		7,264
Total Undiscounted Cash Flows	6,996		8,555
Less: Net Present Value Adjustment	1,174		3,436
Lease Liability	$	5,822	$	5,119

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 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 or obligations of the Company 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 the two subsidiary banks. 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 the two subsidiary banks. Additional information regarding these relationships can be found in Part III, Item 13 under the caption "Related Party Transactions."

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2022 and December 31, 2021:

		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2022			December 31, 2021
Right-of-Use Assets	Premises and Equipment, Net	$	4,637		$	4,814
Lease Liabilities	Finance Leases	5,119			5,169
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,627		$	6,941
Lease Liabilities	Other Liabilities	5,822			7,124
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	193		$	195
Operating Outgoing Cash Flows From Operating Leases		1,301			794
Financing Outgoing Cash Flows From Finance Leases		50			48
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		—			2,508
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		27.24			28.20
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.14			11.17
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.92		%	2.86		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-Use Assets	$	44	$	44	$	177	$	177
Interest on Lease Liabilities	48		49		193		195
Operating Lease Cost	304		270		1,229		1,007
Short-term Lease Cost	15		19		47		47
Variable Lease Cost	81		67		334		270
Total Lease Cost	$	492	$	449	$	1,980	$	1,696

Future Lease Payments at December 31, 2022 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2023	$	964	$	243
12/31/2024	699		249
12/31/2025	637		263
12/31/2026	574		268
12/31/2027	545		268
Thereafter	3,577		7,264
Total Undiscounted Cash Flows	6,996		8,555
Less: Net Present Value Adjustment	1,174		3,436
Lease Liability	$	5,822	$	5,119