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Fair Values
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Values FAIR VALUES (Dollars In Thousands)
FASB ASC Subtopic 820-10 defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. There are no nonfinancial assets or liabilities measured at fair value on a recurring basis. The only assets or liabilities that Arrow measured at fair value on a recurring basis at September 30, 2024, December 31, 2023 and September 30, 2023 were AFS securities, equity securities and derivatives. Arrow held no securities or liabilities for trading on such dates.
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 ValueQuoted 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:
September 30, 2024
Assets:
Securities Available-for Sale:
   U.S. Treasuries$50,024 $— $50,024 $— 
   U.S. Government & Agency Obligations141,350 — 141,350 $— 
   State and Municipal Obligations240 — 240 — 
   Mortgage-Backed Securities244,496 — 244,496 — 
   Corporate and Other Debt Securities957 — 957 — 
Total Securities Available-for-Sale437,067 — 437,067 — 
Equity Securities5,089 2,987 2,102 — 
Total Securities Measured on a Recurring Basis442,156 2,987 439,169 — 
Derivative Assets15,198 — 15,198 — 
Total Measured on a Recurring Basis$457,354 $2,987 $454,367 $— 
Liabilities:
Derivative Liabilities14,297 — 14,297 — 
Total Measured on a Recurring Basis$14,297 $— $14,297 $— 
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
Fair Value Measurements at Reporting Date Using:
Fair ValueQuoted Prices
In Active Markets for Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2023
Assets:
Securities Available-for Sale:
   U.S. Treasuries$74,004 $— $74,004 $— 
   U.S. Government & Agency Obligations152,925 — 152,925 — 
   State and Municipal Obligations280 — 280 — 
   Mortgage-Backed Securities269,760 — 269,760 — 
   Corporate and Other Debt Securities800 — 800 — 
Total Securities Available-for-Sale497,769 — 497,769 — 
Equity Securities1,925 — 1,925 — 
Total Securities Measured on a Recurring Basis499,694 — 499,694 — 
Derivative Assets 12,057 — 12,057 — 
Total Measured on a Recurring Basis$511,751 $— $511,751 $— 
Liabilities:
Derivative Liabilities$9,598 $— $9,598 $— 
Total Measured on a Recurring Basis$9,598 $— $9,598 $— 
September 30, 2023
Assets:
Securities Available-for Sale:
   U.S. Government & Agency Obligations$176,421 $— $176,421 $— 
   State and Municipal Obligations280 — 280 — 
   Mortgage-Backed Securities341,739 — 341,739 — 
   Corporate and Other Debt Securities800 — 800 — 
Total Securities Available-for-Sale519,240 — 519,240 — 
Equity Securities1,960 — 1,960 — 
Total Securities Measured on a Recurring Basis521,200 — 521,200 — 
Derivative Assets8,860 — 8,860 — 
Total Measured on a Recurring Basis$530,060 $— $530,060 $— 
Liabilities:
Derivative Liabilities8,733 — 8,733 — 
Total Measured on a Recurring Basis$8,733 $— $8,733 $— 
Fair ValueQuoted Prices
In Active Markets for Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Gains (Losses) Recognized in Earnings
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
September 30, 2024
Collateral Dependent Evaluated Loans$— $— $— $— 
Other Real Estate Owned and Repossessed Assets, Net399 — — 399 — 
December 31, 2023
Collateral Dependent Impaired Loans$— $— $— $— 
Other Real Estate Owned and Repossessed Assets, Net312 — — 312 — 
September 30, 2023
Collateral Dependent Impaired Loans$— $— $— $— 
Other Real Estate Owned and Repossessed Assets, Net526 — — 526 — 

The fair value of financial instruments is determined under the following hierarchy:
•Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
•Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and,
•Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Fair Value Methodology for Assets and Liabilities Measured on a Recurring Basis

The fair value of Level 1 AFS securities are based on unadjusted, quoted market prices from exchanges in active markets. The fair value of Level 2 AFS securities are based on an independent bond and equity pricing service for identical assets or significantly similar securities and an independent equity pricing service for equity securities not actively traded.  The pricing services use a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models.  Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. The fair value of Level 2 equities are based on the last observable price in open markets. The fair value of Level 2 equities are based on the last observable price in open markets.  The fair value of Level 2 derivatives is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes.

Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis

The fair value of collateral dependent evaluated loans and other real estate owned was based on third-party appraisals less estimated cost to sell. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Other assets which might have been included in this table include mortgage servicing rights, goodwill and other intangible assets. Arrow evaluates each of these assets for impairment at least annually, with no impairment recognized for these assets at September 30, 2024, December 31, 2023 and September 30, 2023.
Fair Value by Balance Sheet Grouping

The following table presents a summary of the carrying amount, the fair value (exit price) 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 ValueFair ValueLevel 1Level 2Level 3
September 30, 2024
Cash and Cash Equivalents$340,088 $340,088 $340,088 $— $— 
Securities Available-for-Sale437,067 437,067 — 437,067 — 
Securities Held-to-Maturity103,337 101,929 — 101,929 — 
Equity Securities5,089 5,089 2,987 2,102 — 
Federal Home Loan Bank and Federal
  Reserve Bank Stock		4,352 4,352 — 4,352 — 
Net Loans3,308,675 3,107,250 — — 3,107,250 
Accrued Interest Receivable12,492 12,492 — 12,492 — 
Derivative Assets15,198 15,198 15,198 
Deposits3,837,457 3,834,428 — 3,834,428 — 
Borrowings103,600 103,705 — 103,705 — 
Junior Subordinated Obligations Issued
  to Unconsolidated Subsidiary Trusts		20,000 20,000 — 20,000 — 
Accrued Interest Payable7,468 7,468 — 7,468 — 
Derivative Liabilities14,297 14,297 — 14,297 — 
December 31, 2023
Cash and Cash Equivalents$142,536 $142,536 $142,536 $— $— 
Securities Available-for-Sale497,769 497,769 — 497,769 — 
Securities Held-to-Maturity131,395 128,837 — 128,837 — 
Equity Securities1,925 1,925 1,925 
Federal Home Loan Bank and Federal
  Reserve Bank Stock		5,049 5,049 — 5,049 — 
Net Loans3,181,643 2,940,318 — — 2,940,318 
Accrued Interest Receivable11,076 11,076 — 11,076 — 
Derivative Assets12,057 12,057 — 12,057 — 
Deposits3,687,566 3,683,122 — 3,683,122 — 
Borrowings26,500 26,189 — 26,189 — 
Junior Subordinated Obligations Issued
  to Unconsolidated Subsidiary Trusts		20,000 20,000 — 20,000 — 
Accrued Interest Payable6,289 6,289 — 6,289 — 
Derivative Liabilities9,598 9,598 — 9,598 — 
September 30, 2023
Cash and Cash Equivalents$294,739 $294,739 $294,739 $— $— 
Securities Available-for-Sale519,240 519,240 — 519,240 — 
Securities Held-to-Maturity140,577 134,811 — 134,811 — 
Equity Securities1,960 1,960 — 1,960 
Federal Home Loan Bank and Federal
  Reserve Bank Stock		5,110 5,110 — 5,110 — 
Net Loans3,107,505 2,867,016 — — 2,867,016 
Accrued Interest Receivable11,163 11,163 — 11,163 — 
Derivative Assets8,860 8,860 — 8,860 — 
Deposits3,666,485 3,660,360 — 3,660,360 — 
Borrowings174,300 173,709 — 173,709 — 
Junior Subordinated Obligations Issued
  to Unconsolidated Subsidiary Trusts		20,000 20,000 — 20,000 — 
Accrued Interest Payable7,432 7,432 — 7,432 — 
Derivative Liabilities8,733 8,733 — 8,733 —