Investment Securities

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022:

Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
December 31, 2023
Available-For-Sale Securities,   at Amortized Cost	$	73,761	$	160,000	$	280	$	305,161	$	1,000	$	540,202
Gross Unrealized Gains	243		51		—		6		—		300
Gross Unrealized Losses	—		(7,126)		—		(35,407)		(200)		(42,733)
Available-For-Sale Securities,   at Fair Value	$	74,004	$	152,925	$	280	$	269,760	$	800	$	497,769
Available-For-Sale Securities,   Pledged as Collateral,   at Fair Value											242,938
Maturities of Debt Securities, at Amortized Cost:
Within One Year	48,844		15,000		—		2,546		—		66,390
From 1 - 5 Years	24,917		145,000		—		148,164		—		318,081
From 5 - 10 Years	—		—		280		154,451		1,000		155,731
Over 10 Years	—		—		—		—		—		—
Maturities of Debt Securities, at Fair Value:
Within One Year	48,915		14,858		—		2,481		—		66,254
From 1 - 5 Years	25,089		138,067		—		135,570		—		298,726
From 5 - 10 Years	—		—		280		131,709		800		132,789
Over 10 Years	—		—		—		—		—		—
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	—	$	—	$	—	$	—	$	—	$	—
12 Months or Longer	—		137,874		—		269,286		800		407,960
Total	$	—	$	137,874	$	—	$	269,286	$	800	$	407,960
Number of Securities in a   Continuous Loss Position	—		19		—		97		1		117

Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	—	$	—	$	—	$	—
12 Months or Longer	—		7,126		—		35,407		200		42,733
Total	$	—	$	7,126	$	—	$	35,407	$	200	$	42,733
Disaggregated Details:
US Treasury Obligations,   at Amortized Cost	$	73,761
US Treasury Obligations,   at Fair Value	74,004
US Agency Obligations,   at Amortized Cost			$	160,000
US Agency Obligations,   at Fair Value			152,925
Local Municipal Obligations, at Amortized Cost					$	280
Local Municipal Obligations, at Fair Value					280
US Government Agency   Securities, at Amortized Cost							$	7,291
US Government Agency   Securities, at Fair Value							6,864
Government Sponsored Entity   Securities, at Amortized Cost							297,870
Government Sponsored Entity   Securities, at Fair Value							262,896
Corporate Trust Preferred Securities, at Amortized Cost									$	1,000
Corporate Trust Preferred Securities, at Fair Value									800

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
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
Local Municipal Obligations, at Amortized Cost			$	340
Local Municipal Obligations, at Fair Value			340
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
Corporate Trust Preferred Securities, at Amortized Cost							$	1,000
Corporate Trust Preferred Securities, at Fair Value							800

At December 31, 2023, there was no allowance for credit losses for the available for sale securities portfolio.

The following is a summary of realized losses recognized in net income on available-for-sale securities sold during the years ended December 31, 2023 and 2022:

	December 31,
	2023		2022
Proceeds Received on Sale of AFS Securities	$	100,739	$	—
Basis of AFS investments Sold	109,836		—
Net Loss Recognized on Sale of AFS Securities	$	(9,097)	$	—

The following table is the schedule of Held-To-Maturity Securities at December 31, 2023 and 2022:

Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
December 31, 2023
Held-To-Maturity Securities,   at Amortized Cost	$	122,450	$	8,945	$	131,395
Gross Unrealized Gains	—		—		—
Gross Unrealized Losses	(2,157)		(401)		(2,558)
Held-To-Maturity Securities,   at Fair Value	$	120,293	$	8,544	$	128,837
Held-To-Maturity Securities,   Pledged as Collateral, at Fair Value					112,472
Maturities of Debt Securities, at Amortized Cost:
Within One Year	47,565		—		47,565
From 1 - 5 Years	72,609		8,945		81,554
From 5 - 10 Years	2,247		—		2,247
Over 10 Years	29		—		29
Maturities of Debt Securities, at Fair Value:
Within One Year	47,293		—		47,293
From 1 - 5 Years	70,751		8,543		79,294
From 5 - 10 Years	2,220		—		2,220
Over 10 Years	29		—		29
Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	1,472	$	—	$	1,472
12 Months or Longer	102,839		8,544		111,383
Total	$	104,311	$	8,544	$	112,855
Number of Securities in a   Continuous Loss Position	319		16		335
Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	14	$	—	$	14
12 Months or Longer	2,143		402		2,545
Total	$	2,157	$	402	$	2,559
Disaggregated Details:
Municipal Securities, at Amortized Cost	$	122,450
Municipal Securities, at Fair Value	120,293
US Government Agency   Securities, at Amortized Cost			$	3,114
US Government Agency   Securities, at Fair Value			2,954

Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
Government Sponsored Entity   Securities, at Amortized Cost			5,831
Government Sponsored Entity   Securities, at Fair Value			5,589
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
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:
Municipal Securities, at Amortized Cost	$	163,600
Municipal Securities, at Fair Value	160,470
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

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, 2023 and December 31, 2022 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, 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 the security before recovery of its amortized cost basis, which may be at maturity. Arrow carried no allowance for credit loss at December 31, 2023 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during 2023.  

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, 2023.

The following table is the schedule of Equity Securities at December 31, 2023 and 2022.

Equity Securities
	December 31,
	2023		2022
Equity Securities, at Fair Value	$	1,925	$	2,174

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, 2023 and 2022:

	December 31,
	2023		2022
Net Gain on Equity Securities	$	9,005	$	427
Less: Net Gain recognized during the reporting period on equity securities sold during the period	9,254		—
Unrealized Net (Loss) Gain recognized during the reporting period on equity securities still held at the reporting date	$	(249)	$	427

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

	December 31,
	2023		2022
Federal Reserve Bank Stock	$	1,197	$	1,180
Federal Home Loan Bank Stock	3,852		4,884
Total Federal Reserve Bank and Federal Home Loan Bank Stock	$	5,049	$	6,064