Leases

3 Months Ended

Mar. 31, 2023

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 Arrow and the two subsidiary banks. Arrow also leases one administrative office from an entity controlled by Elizabeth Miller, who also serves as a Director on the Board of Directors of Arrow and the two subsidiary banks.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2023 and March 31, 2022:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2023			March 31, 2022
Right-of-Use Assets	Premises and Equipment, Net	$	4,593		$	4,770
Lease Liabilities	Finance Leases	5,106			5,156
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,388		$	6,676
Lease Liabilities	Other Liabilities	5,584			6,863
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		257			260
Financing Outgoing Cash Flows From Finance Leases		13			13
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		19			—
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		27.00			28.00
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.45			11.20
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.97		%	2.81		%

Lease cost information for Arrow's leases is as follows:
	Three Months Ended
	March 31, 2023		March 31, 2022
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		49
Operating Lease Cost	298		312
Short-term Lease Cost	14		10
Variable Lease Cost	73		95
Total Lease Cost	$	478	$	510

Future Lease Payments at March 31, 2023 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2024	$	866	$	243
3/31/2025	685		254
3/31/2026	625		265
3/31/2027	561		268
3/31/2028	526		268
Thereafter	3,455		7,197
Total Undiscounted Cash Flows	$	6,718	$	8,495
Less: Net Present Value Adjustment	1,134		3,389
Lease Liability	$	5,584	$	5,106

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 Arrow and the two subsidiary banks. Arrow also leases one administrative office from an entity controlled by Elizabeth Miller, who also serves as a Director on the Board of Directors of Arrow and the two subsidiary banks.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2023 and March 31, 2022:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2023			March 31, 2022
Right-of-Use Assets	Premises and Equipment, Net	$	4,593		$	4,770
Lease Liabilities	Finance Leases	5,106			5,156
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	5,388		$	6,676
Lease Liabilities	Other Liabilities	5,584			6,863
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		257			260
Financing Outgoing Cash Flows From Finance Leases		13			13
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		19			—
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		27.00			28.00
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.45			11.20
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		2.97		%	2.81		%

Lease cost information for Arrow's leases is as follows:
	Three Months Ended
	March 31, 2023		March 31, 2022
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	49		49
Operating Lease Cost	298		312
Short-term Lease Cost	14		10
Variable Lease Cost	73		95
Total Lease Cost	$	478	$	510

Future Lease Payments at March 31, 2023 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2024	$	866	$	243
3/31/2025	685		254
3/31/2026	625		265
3/31/2027	561		268
3/31/2028	526		268
Thereafter	3,455		7,197
Total Undiscounted Cash Flows	$	6,718	$	8,495
Less: Net Present Value Adjustment	1,134		3,389
Lease Liability	$	5,584	$	5,106