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Stock Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation STOCK-BASED COMPENSATION (Dollars In Thousands, Except Share and Per Share Amounts)
Arrow has established three stock-based compensation plans: a Long Term Incentive Plan, an Employee Stock Purchase Plan (ESPP) and an Employee Stock Ownership Plan (ESOP).  All share and per share data have been adjusted for the September 26, 2023 3% stock dividend.

Long Term Incentive Plan

The Long Term Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, performance units and performance shares. The Compensation Committee of the Board of Directors administers the Long Term Incentive Plan.
Shares Available for Grant at December 31, 2023
414,561 

Stock Options - Options may be granted at a price no less than the greater of the par value or fair market value of such shares on the date on which such option is granted, and generally expire ten years from the date of grant.  The options usually vest over a four-year period.

The following table summarizes information about stock option activity for the year ended December 31, 2023.
SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
Outstanding at January 1, 2023287,444 $28.56 
Granted57,680 $31.47 
Exercised(4,677)$20.62 
Forfeited(35,139)$30.91 
Outstanding at December 31, 2023305,308 $28.96 5.35$— 
Vested at Period-End206,850 $27.84 4.00$21 
Expected to Vest98,458 $31.32 8.19$— 

The following is the Schedule of Stock Options Granted Under the Long Term Incentive Plan by Exercise Price Range.
Exercise Price Ranges
$18.97
$19.99 to $20.41
$27.04 to $27.47
$30.26
$31.34 to $33.78
Total
Outstanding at December 31, 2023
Number of Stock Options Outstanding8,757 20,466 115,903 28,917 131,265 305,308 
Weighted-Average Remaining Contractual Life (in years)0.091.614.813.087.275.35
Weighted-Average Exercise Price$18.97 $20.21 $27.26 $30.26 $32.20 $28.96 
Vested at December 31, 2023
Number of Stock Options Outstanding8,757 20,466 97,864 28,917 50,846 206,850 
Weighted-Average Remaining Contractual Life (in years)0.091.614.393.085.434.00
Weighted-Average Exercise Price$18.97 $20.21 $27.30 $30.26 $32.08 $27.84 
    The following is the Schedule of Other Information on Stock Options Granted.
202320222021
Stock Options Granted 57,680 60,471 60,646 
Weighted Average Grant Date Information:
Fair Value of Options Granted $7.78 $7.21 $4.44 
Fair Value Assumptions:
Dividend Yield3.30 %2.90 %3.41 %
Expected Volatility28.38 %27.15 %26.53 %
Risk Free Interest Rate3.57 %1.69 %0.49 %
Expected Lives (in years)8.348.568.75
Amount Expensed During the Year$284 $312 $282 
Compensation Costs for Non-vested Awards Not Yet Recognized536 542 427 
Weighted Average Expected Vesting Period, In Years2.292.222.16
Proceeds From Stock Options Exercised$96 $631 $1,505 
Tax Benefits Related to Stock Options Exercised11 34 69 
Intrinsic Value of Stock Options Exercised34 338 439 

Restricted Stock Units - Historically, the Company has granted restricted stock units which gives the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock unit is the market value of Company stock on the date of grant. 100% of the restricted stock unit awards vest three years from the grant date, unless vested or forfeited prior to vesting in accordance with the terms of the award. Once vested, the restricted stock units become vested units and are no longer forfeitable. Vested units settle upon retirement of the recipient. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions.

The following table summarizes information about restricted stock unit activity for the year ended December 31, 2023.
Restricted Stock UnitsWeighted Average Grant Date Fair Value
Non-vested at January 1, 202313,925 $30.47 
Granted 516431.47 
Vested (19,089)30.74 
Non-vested at December 31, 2023— — 
Non-vested at January 1, 202214,007 $28.42 
Granted4,441 33.78 
Vested(4,523)27.35 
Non-vested at December 31, 202213,925 30.47 
Non-vested at January 1, 202112,744 $28.94 
Granted5,177 26.90 
Vested(3,914)28.11 
Non-vested at December 31, 202114,007 28.42 

The following table presents information on the amounts expensed related to Restricted Stock Units awarded pursuant to the Long Term Incentive Plan for the years ended December 31, 2023, 2022 and 2021.
202320222021
Amount Expensed During the Year$321 $141 $132 
Compensation Costs for Non-vested Awards Not Yet Recognized— 158 149 

Employee Stock Purchase Plan

In April 2023, Arrow suspended the operation of the ESPP as a result of the now resolved delay in filing the 2022 Form 10-K and the 2023 Q1 Form 10-Q and the related effects under applicable securities laws. In October 2023, the Board of Directors approved the adoption of the 2023 ESPP, which is intended to satisfy all requirements of Section 423 of the Internal Revenue
Code, which was effective January 1, 2024. Under the new qualified 2023 ESPP, the amount of the discount is 10%. Until its suspension due to the filing delays, Arrow sponsored an ESPP under which employees purchased Arrow's common stock at a 5% discount below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. The new qualified 2023 ESPP will be submitted to the Arrow shareholders for approval at the next annual meeting of shareholders. In the event the shareholders of the Company do not approve the 2023 ESPP at the Annual Meeting: (i) the 2023 ESPP shall immediately terminate; (ii) all amounts contributed by each participant in the 2023 ESPP which have not been used to purchase Common Stock will be returned to such participant as soon as practicable; and (iii) purchases under the 2023 ESPP made from the Inception Date through the date of termination of the 2023 ESPP shall not be treated as purchased pursuant to an employee stock purchase plan that satisfies Section 423 of the Code and participants would not qualify for favorable tax treatment of such purchases.

Employee Stock Ownership Plan

Arrow maintains an employee stock ownership plan.  Substantially all employees of Arrow and its subsidiaries are eligible to participate upon satisfaction of applicable service requirements. The Company makes voluntary cash contributions to the Plan each year.

Schedule of ESOP Compensation Expense
202320222021
ESOP Compensation Expense$1,540 $1,457 $1,487