Leases

3 Months Ended

Mar. 31, 2024

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 its two subsidiary banks.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2024 and March 31, 2023:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2024			March 31, 2023
Right-of-Use Assets	Premises and Equipment, Net	$	4,416		$	4,593
Lease Liabilities	Finance Leases	5,053			5,106
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,790		$	5,388
Lease Liabilities	Other Liabilities	4,997			5,584
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	48		$	49
Operating Outgoing Cash Flows From Operating Leases		155			257
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.)		26.04			27.00
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.06			11.45
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.10		%	2.97		%

Lease cost information for Arrow's leases is as follows:
	Three Months Ended
	March 31, 2024		March 31, 2023
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	48		49
Operating Lease Cost	195		298
Short-term Lease Cost	10		14
Variable Lease Cost	75		73
Total Lease Cost	$	372	$	478

Future Lease Payments at March 31, 2024 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2025	$	720	$	254
3/31/2026	671		264
3/31/2027	607		268
3/31/2028	537		268
3/31/2029	489		268
Thereafter	2,967		6,929
Total Undiscounted Cash Flows	$	5,991	$	8,251
Less: Net Present Value Adjustment	994		3,198
Lease Liability	$	4,997	$	5,053

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 its two subsidiary banks.

The following includes quantitative data related to Arrow's leases as of and for the three months ended March 31, 2024 and March 31, 2023:

		Three Months Ended
Finance Lease Amounts:	Classification	March 31, 2024			March 31, 2023
Right-of-Use Assets	Premises and Equipment, Net	$	4,416		$	4,593
Lease Liabilities	Finance Leases	5,053			5,106
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,790		$	5,388
Lease Liabilities	Other Liabilities	4,997			5,584
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	48		$	49
Operating Outgoing Cash Flows From Operating Leases		155			257
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.)		26.04			27.00
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		11.06			11.45
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.10		%	2.97		%

Lease cost information for Arrow's leases is as follows:
	Three Months Ended
	March 31, 2024		March 31, 2023
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44
Interest on Lease Liabilities	48		49
Operating Lease Cost	195		298
Short-term Lease Cost	10		14
Variable Lease Cost	75		73
Total Lease Cost	$	372	$	478

Future Lease Payments at March 31, 2024 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
3/31/2025	$	720	$	254
3/31/2026	671		264
3/31/2027	607		268
3/31/2028	537		268
3/31/2029	489		268
Thereafter	2,967		6,929
Total Undiscounted Cash Flows	$	5,991	$	8,251
Less: Net Present Value Adjustment	994		3,198
Lease Liability	$	4,997	$	5,053