XML 23 R13.htm IDEA: XBRL DOCUMENT v3.23.2
Investment Securities
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES (In Thousands)
The following table is the schedule of Available-For-Sale Securities at June 30, 2023, December 31, 2022 and June 30, 2022:
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
June 30, 2023
Available-For-Sale Securities,
  at Amortized Cost		$190,000 $280 $414,995 $1,000 $606,275 
Gross Unrealized Gains— — 3 — 3 
Gross Unrealized Losses (13,984)— (48,386)(200)(62,570)
Available-For-Sale Securities,
  at Fair Value 		176,016 280 366,612 800 543,708 
Available-For-Sale Securities,
  Pledged as Collateral, at Fair
  Value		362,707 
Maturities of Debt Securities,
  at Amortized Cost:
Within One Year$15,000 $— $730 $— $15,730 
From 1 - 5 Years175,000 — 227,541 — 402,541 
From 5 - 10 Years— 280 186,724 1,000 188,004 
Over 10 Years— — — — — 
Maturities of Debt Securities,
  at Fair Value:
Within One Year$14,660 $— $706 $— $15,366 
From 1 - 5 Years161,356 — 207,528 — 368,884 
From 5 - 10 Years— 280 158,378 800 159,458 
Over 10 Years— — — — — 
Securities in a Continuous
  Loss Position, at Fair Value:
Less than 12 Months$29,509 $— $24,851 $— $54,360 
12 Months or Longer146,505 — 341,648 800 488,953 
Total$176,014 $— $366,499 $800 $543,313 
Number of Securities in a
  Continuous Loss Position		25 — 154 1 180 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
Less than 12 Months$490 $— $551 $— $1,041 
12 Months or Longer13,494 — 47,835 200 61,529 
Total$13,984 $— $48,386 $200 $62,570 
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
Disaggregated Details:
US Agency Obligations,
  at Amortized Cost		$190,000 
US Agency Obligations,
  at Fair Value		176,016 
US Government Agency
  Securities, at Amortized Cost		$7,573 
US Government Agency
  Securities, at Fair Value		7,048 
Government Sponsored Entity
  Securities, at Amortized Cost		407,422 
Government Sponsored Entity
  Securities, at Fair Value		359,564 
December 31, 2022
Available-For-Sale Securities,
  at Amortized Cost		$190,000 $340 $447,755 $1,000 $639,095 
Gross Unrealized Gains15 — 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 
Securities in a Continuous
  Loss Position, at Fair Value:
Less than 12 Months$66,690 $— $183,868 $— $250,558 
12 Months or Longer93,493 — 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 Longer11,506 — 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 
June 30, 2022
Available-For-Sale Securities,
  at Amortized Cost		$165,000 $340 $460,227 $1,000 $626,567 
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
Gross Unrealized Gains— — 43 — 43 
Gross Unrealized Losses(9,525)— (34,144)(200)(43,869)
Available-For-Sale Securities,
  at Fair Value		155,475 340 426,126 800 582,741 
Available-For-Sale Securities,
  Pledged as Collateral, at Fair
  Value		329,371 
Securities in a Continuous
  Loss Position, at Fair Value:
Less than 12 Months$72,817 $— $350,994 $— $423,811 
12 Months or Longer82,657 — 68,992 800 152,449 
Total$155,474 $— $419,986 $800 $576,260 
Number of Securities in a
  Continuous Loss Position		22 — 137 1 160 
Unrealized Losses on Securities
  in a Continuous Loss Position:
Less than 12 Months$2,183 $— $24,539 $— $26,722 
12 Months or Longer7,342 — 9,605 200 17,147 
Total$9,525 $— $34,144 $200 $43,869 
Disaggregated Details:
US Agency Obligations,
  at Amortized Cost		$165,000 
US Agency Obligations,
  at Fair Value		155,475 
US Government Agency
  Securities, at Amortized Cost		$8,533 
US Government Agency
  Securities, at Fair Value		8,292 
Government Sponsored Entity
  Securities, at Amortized Cost		451,694 
Government Sponsored Entity
  Securities, at Fair Value		417,834 

At June 30, 2023, there was no allowance for credit losses for the AFS debt securities portfolio.

The following table is the schedule of Held-To-Maturity Securities at June 30, 2023, December 31, 2022 and June 30, 2022:
Held-To-Maturity Securities
State and
Municipal
Obligations		Mortgage-
Backed
Securities		Total
Held-To
Maturity
Securities
June 30, 2023
Held-To-Maturity Securities,
  at Amortized Cost		$133,176 $10,284 $143,460 
Gross Unrealized Gains— — — 
Gross Unrealized Losses(3,717)(600)(4,317)
Held-To-Maturity Securities,
  at Fair Value		129,459 9,684 139,143 
Held-To-Maturity Securities,
  Pledged as Collateral, at Fair Value		115,674 
Maturities of Debt Securities,
  at Amortized Cost:
Within One Year$58,665 $— $58,665 
Held-To-Maturity Securities
State and
Municipal
Obligations		Mortgage-
Backed
Securities		Total
Held-To
Maturity
Securities
From 1 - 5 Years72,172 10,284 82,456 
From 5 - 10 Years2,309 — 2,309 
Over 10 Years30 — 30 
Maturities of Debt Securities,
  at Fair Value:
Within One Year$57,955 $— $57,955 
From 1 - 5 Years69,197 9,684 78,881 
From 5 - 10 Years2,277 — 2,277 
Over 10 Years30 — 30 
Securities in a Continuous
  Loss Position, at Fair Value:
Less than 12 Months$19,210 $— $19,210 
12 Months or Longer94,163 9,684 103,847 
Total$113,373 $9,684 $123,057 
Number of Securities in a
  Continuous Loss Position		343 16 359 
Unrealized Losses on Securities
   in a Continuous Loss Position:
Less than 12 Months$292 $— $292 
12 Months or Longer3,425 600 4,025 
Total$3,717 $600 $4,317 
Disaggregated Details:
US Government Agency
  Securities, at Amortized Cost		$3,516 
US Government Agency
  Securities, at Fair Value		3,295 
Government Sponsored Entity
  Securities, at Amortized Cost		6,768 
Government Sponsored Entity
  Securities, at Fair Value		6,389 
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 Gains1 — 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 
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
June 30, 2022
Held-To-Maturity Securities,
  at Amortized Cost		$168,599 $13,497 $182,096 
Gross Unrealized Gains56 — 56 
Gross Unrealized Losses(1,449)(192)(1,641)
Held-To-Maturity Securities,
  at Fair Value		167,206 13,305 180,511 
Held-To-Maturity Securities,
  Pledged as Collateral, at Fair Value		153,020 
Securities in a Continuous
  Loss Position, at Fair Value:
Less than 12 Months$116,075 $13,305 $129,380 
12 Months or Longer— — — 
Total$116,075 $13,305 $129,380 
Number of Securities in a
  Continuous Loss Position		327 17 344 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
Less than 12 Months$1,449 $192 $1,641 
12 Months or Longer— — — 
Total$1,449 $192 $1,641 
June 30, 2022
Disaggregated Details:
US Government Agency
  Securities, at Amortized Cost		$4,401 
US Government Agency
  Securities, at Fair Value		4,328 
Government Sponsored Entity
  Securities, at Amortized Cost		9,096 
Government Sponsored Entity
  Securities, at Fair Value		8,977 

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.
Arrow's investment policy requires that investments held in our portfolio be investment grade or better at the time of purchase. Arrow performs an analysis of the creditworthiness of municipal obligations to determine if a security is of investment grade. The analysis may include but may not solely rely upon credit analysis conducted by external credit rating agencies.
Arrow evaluates AFS 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 non-credit-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 June 30, 2023, 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 any securities before recovery of its amortized cost basis, which may be at maturity. Therefore, Arrow carried no allowance for credit loss at June 30, 2023 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during the three months ended June 30, 2023.  
Arrow's HTM debt securities are comprised of U.S. government-sponsored enterprises (GSEs) or state and municipal obligations. GSE 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 HTM debt portfolio was immaterial and therefore no allowance for credit loss was recorded as of June 30, 2023.
The following table is the schedule of Equity Securities at June 30, 2023, December 31, 2022 and June 30, 2022:
Equity Securities
June 30, 2023December 31, 2022June 30, 2022
Equity Securities, at Fair Value$1,889$2,174$2,031

The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three and six month periods ended June 30, 2023 and 2022:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
Net (Loss) Gain on Equity Securities$(181)$154 $(285)$284 
Less: Net gain recognized during the reporting period on equity securities sold during the period— — — — 
Unrealized net (loss) gain recognized during the reporting period on equity securities still held at the reporting date$(181)$154 $(285)$284