Fair Values (Tables)

3 Months Ended

Mar. 31, 2023

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:
March 31, 2023
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	177,585	$	—	$	177,585	$	—
State and Municipal Obligations	320		—		320		—
Mortgage-Backed Securities	386,988		—		386,988		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	565,693		—		565,693		—
Equity Securities	2,070		—		2,070		—
Total Securities Measured on a Recurring Basis	567,763		—		567,763		—
Derivatives, included in other assets	6,206		—		6,206		—
Total Measured on a Recurring Basis	$	573,969	$	—	$	573,969	$	—
Liabilities:
Derivatives, included in other liabilities	6,206		—		6,206		—
Total Measured on a Recurring Basis	$	6,206	$	—	$	6,206	$	—
December 31, 2022
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	175,199	$	—	$	175,199	$	—
State and Municipal Obligations	340		—		340		—
Mortgage-Backed Securities	397,156		—		397,156		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	573,495		—		573,495		—
Equity Securities	2,174		—		2,174		—


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	575,669		—		575,669		—
Derivatives, included in other liabilities	7,506		—		7,506		—
Total Measured on a Recurring Basis	$	583,175	$	—	$	583,175	$	—
Liabilities:
Derivatives, included in other liabilities	$	7,506	—		$	7,506	—
Total Measured on a Recurring Basis	$	7,506	$	—	$	7,506	$	—
March 31, 2022
Assets:
Securities Available-for Sale:
U.S. Government & Agency Obligations	$	132,744	$	—	$	132,744	$	—
State and Municipal Obligations	380		—		380		—
Mortgage-Backed Securities	448,504		—		448,504		—
Corporate and Other Debt Securities	800		—		800		—
Total Securities Available-for-Sale	582,428		—		582,428		—
Equity Securities	1,877		—		1,877		—
Total Securities Measured on a Recurring Basis	584,305		—		584,305		—
Derivatives, included in other assets	4,131		—		4,131		—
Total Measured on a Recurring Basis	$	588,436	$	—	$	588,436	$	—
Liabilities:
Derivatives, included in other liabilities	4,131		—		4,131		—
Total Measured on a Recurring Basis	$	4,131	$	—	$	4,131	$	—


	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:
March 31, 2023
Collateral Dependent Evaluated Loans	$	—	$	—	$	—	$	—
Other Real Estate Owned and Repossessed Assets, Net	144		—		—		144		—
December 31, 2022
Collateral Dependent Impaired Loans	$	—	$	—	$	—	$	—
Other Real Estate Owned and Repossessed Assets, Net	593		—		—		593		—
March 31, 2022
Collateral Dependent Impaired Loans	$	2,168	$	—	$	—	$	2,168
Other Real Estate Owned and Repossessed Assets, Net	180		—		—		180		—

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
March 31, 2023
Cash and Cash Equivalents	$	203,472	$	203,472	$	203,472	$	—	$	—
Securities Available-for-Sale	565,693		565,693		—		565,693		—
Securities Held-to-Maturity	167,347		164,439		—		164,439		—
Equity Securities	2,070		2,070		—		2,070		—
Federal Home Loan Bank and Federal Reserve Bank Stock	10,027		10,027		—		10,027		—
Net Loans	2,974,568		2,705,312		—		—		2,705,312
Accrued Interest Receivable	9,857		9,857		—		9,857		—
Derivatives, included in other assets	6,206		6,206				6,206
Deposits	3,546,349		3,540,854		—		3,540,854		—


Federal Home Loan Bank Term Advances	107,800		107,830		—		107,830		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	1,170		1,170		—		1,170		—
Derivatives, included in other liabilities	6,206		6,206		—		6,206		—

December 31, 2022
Cash and Cash Equivalents	$	64,660	$	64,660	$	64,660	$	—	$	—
Securities Available-for-Sale	573,495		573,495		—		573,495		—
Securities Held-to-Maturity	175,364		171,623		—		171,623		—
Equity Securities	2,174		2,174				2,174
Federal Home Loan Bank and Federal Reserve Bank Stock	6,064		6,064		—		6,064		—
Net Loans	2,953,255		2,742,721		—		—		2,742,721
Accrued Interest Receivable	9,890		9,890		—		9,890		—
Derivatives, included in other assets	7,506		7,506		—		7,506		—
Deposits	3,498,364		3,492,021		—		3,492,021		—

Federal Home Loan Bank Term Advances	27,800		27,800		—		27,800		—

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	357		357		—		357		—
Derivatives, included in other liabilities	7,506		7,506		—		7,506		—

March 31, 2022
Cash and Cash Equivalents	$	487,578	$	487,578	$	487,578	$	—	$	—
Securities Available-for-Sale	582,428		582,428		—		582,428		—
Securities Held-to-Maturity	196,661		195,862		—		195,862		—
Equity Securities	1,877		1,877		—		1,877
Federal Home Loan Bank and Federal Reserve Bank Stock	4,491		4,491		—		4,491		—
Net Loans	2,709,606		2,648,804		—		—		2,648,804
Accrued Interest Receivable	8,099		8,099		—		8,099		—
Derivatives, included in other assets	4,131		4,131		—		4,131		—
Deposits	3,715,373		3,711,189		—		3,711,189		—


Federal Home Loan Bank Term Advances	25,000		25,001		—		25,001		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	102		102		—		102		—
Derivatives, included in other liabilities	4,131		4,131		—		4,131		—

- 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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