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Fair Values
 12 Months Ended
Dec. 31, 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 generally accepted accounting principles (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 December 31, 2024 and 2023 were securities available-for-sale, equity securities and derivatives.  Arrow held no securities or liabilities for trading on such dates.  For information on fair value measurements, including descriptions of level 1, 2 and 3 of the fair value hierarchy and the valuation methods employed by Arrow, see Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements.

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 Value of Assets and Liabilities Measured on a Recurring Basis:Fair ValueQuoted Prices
In Active Markets for Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2024
Assets:
Securities Available-for Sale:
U.S. Treasuries$98,070 $98,070 $— $— 
U.S. Government & Agency Obligations69,214 — 69,214 $— 
State and Municipal Obligations240 — 240 — 
Mortgage-Backed Securities294,608 — 294,608 — 
Corporate and Other Debt Securities979 — 979 — 
  Total Securities Available-for-Sale463,111 98,070 365,041 $— 
Equity Securities5,055 — 5,055 — 
Total Securities Measured on a Recurring Basis468,166 98,070 370,096 — 
Derivative Assets12,659 — 12,659 — 
Total Measured on a Recurring Basis$480,825 $98,070 $382,755 $— 
Liabilities:
Derivative Liabilities$8,638 $— $8,638 $— 
Total Measured on a Recurring Basis$8,638 $— $8,638 $— 
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 74,004 423,765 — 
Equity Securities1,925 — 1,925 — 
Total Securities Measured on a Recurring Basis499,694 74,004 425,690 — 
Derivative Assets12,057 — 12,057 — 
Total Measured on a Recurring Basis$511,751 $74,004 $437,747 $— 
Liabilities:
Derivative Liabilities$9,598 $— $9,598 $— 
Total Measured on a Recurring Basis$9,598 $— $9,598 $— 
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:Fair ValueQuoted Prices
In Active Markets for Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
December 31, 2024
Collateral Dependent Impaired Loans$— $— $— $— 
Other Real Estate Owned and Repossessed Assets, Net458 — — 458 
December 31, 2023
Collateral Dependent Impaired Loans$— $— $— $— 
Other Real Estate Owned and Repossessed Assets, Net312 — — 312 

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).

U.S. Treasuries purchased in the fourth quarter of 2023, previously reported as Level 2, have been reclassified as Level 1 securities based on the availability of quoted prices in active markets and certain local municipal obligations previously reported as Level 2 have been reclassified as Level 3 based on the lack of an active market. These reclassification had no impact to the total fair value.

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 impaired 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 December 31, 2024 and 2023.

Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis

The fair value for securities held-to-maturity is determined utilizing an independent bond pricing service for identical assets or significantly similar securities.  The pricing service uses 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.
Local municipal held-to-maturity securities are recorded at cost on the financial statements. That determination is due to several factors including that there is no reliable external pricing available, the vast majority of maturities are under 1-year, and each are guaranteed by their respective municipalities, who are in turn guaranteed by the State of New York.
ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" requires that the fair value for loans must be disclosed using the "exit price" notion which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for loans are calculated for portfolios of loans with similar financial characteristics.  Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect auto and other consumer loans.  Each loan category is further segmented into fixed and adjustable interest rate terms and by performing and nonperforming categories.  The fair value of performing loans is calculated by determining the estimated future cash flow, which is the contractual cash flow adjusted for estimated prepayments. The discount rate is determined by starting with current market yields, and first adjusting for a liquidity premium. This premium is separately determined for each loan type. Then a credit loss component is determined utilizing the credit loss assumptions used in the allowance for credit loss model. Finally, a discount spread is applied separately for consumer loans vs. commercial loans based on market information and utilization of the swap curve. 
The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rates are estimated using the FHLBNY yield curve, which is considered representative of Arrow’s time deposit rates.
The fair value of FHLBNY advances is calculated by the FHLBNY.
The carrying amount of FHLBNY and FRB stock approximates fair value. If the stock was redeemed, the Company will receive an amount equal to the par value of the stock.
Fair Value by Balance Sheet Grouping

The following table presents a summary of the carrying amount, the fair value and the fair value hierarchy of Arrow’s financial instruments:
Schedule of Fair Values by Balance Sheet Grouping
Fair Value Hierarchy
Carrying
Amount		Fair
Value		Level 1Level 2Level 3
December 31, 2024
Cash and Cash Equivalents$154,546 $154,546 $154,546 $— $— 
Securities Available-for-Sale463,111 463,111 98,070 365,041 — 
Securities Held-to-Maturity98,261 96,586 — 75,262 21,324 
Equity Securities5,055 5,055 5,055 
Federal Home Loan Bank and Federal Reserve Bank Stock4,353 4,353 — 4,353 — 
Net Loans3,360,943 3,137,721 — — 3,137,721 
Accrued Interest Receivable13,229 13,229 — 13,229 — 
Derivative Assets12,659 12,659 — 12,659 — 
Deposits3,827,930 3,824,699 — 3,824,699 — 
Borrowings8,600 8,386 — 8,386 — 
Junior Subordinated Obligations Issued
  to Unconsolidated Subsidiary Trusts		20,000 20,000 — 20,000 — 
Accrued Interest Payable5,099 5,099 — 5,099 — 
Derivative Liabilities8,638 8,638 — 8,638 — 
December 31, 2023
Cash and Cash Equivalents$142,536 $142,536 $142,536 $— $— 
Securities Available-for-Sale497,769 497,769 74,004 423,765 — 
Securities Held-to-Maturity131,395 128,837 — 113,640 15,197 
Equity Securities1,925 1,925 1,925 
Federal Home Loan Bank and Federal Reserve Bank Stock5,049 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 —