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Loans
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans LOANS (Dollars In Thousands)
Loan Categories and Past Due Loans

The following table presents loan balances outstanding as of December 31, 2025 and December 31, 2024 and an analysis of the recorded investment in loans that are past due at these dates. Loans held-for-sale of $3,383 and $759 as of December 31, 2025, and December 31, 2024, respectively, are included in the residential real estate balances for current loans.
Schedule of Past Due Loans by Loan Category
Commercial
CommercialReal EstateConsumerResidentialTotal
December 31, 2025
Loans Past Due 30-59 Days$584 $— $13,476 $808 $14,868 
Loans Past Due 60-89 Days255 2,888 7,495 3,503 14,141 
Loans Past Due 90 or More Days195 — 1,886 3,517 5,598 
Total Loans Past Due1,034 2,888 22,857 7,828 34,607 
Current Loans164,695 815,371 1,053,150 1,385,270 3,418,486 
Total Loans$165,729 $818,259 $1,076,007 $1,393,098 $3,453,093 
December 31, 2024
Loans Past Due 30-59 Days$355 $— $11,211 $391 $11,957 
Loans Past Due 60-89 Days156 318 5,417 2,685 8,576 
Loans Past Due 90 or More Days102 14,902 2,225 2,239 19,468 
Total Loans Past Due613 15,220 18,853 5,315 40,001 
Current Loans158,378 781,145 1,100,128 1,314,889 3,354,540 
Total Loans$158,991 $796,365 $1,118,981 $1,320,204 $3,394,541 
Schedule of Non Accrual Loans by Category
Commercial
December 31, 2025CommercialReal EstateConsumerResidentialTotal
Loans 90 or More Days Past Due
  and Still Accruing Interest		$27 $— $31 $1,983 $2,040 
Nonaccrual Loans168 — 1,879 4,368 6,415 
Nonaccrual With No Allowance for Credit Loss168 — 1,879 4,368 6,415 
Interest Income on Nonaccrual Loans— — — — — 
December 31, 2024
Loans 90 or More Days Past Due
  and Still Accruing Interest		$— $— $19 $379 $398 
Nonaccrual Loans102 14,902 2,241 3,376 20,621 
Nonaccrual With No Allowance for Credit Loss102 14,902 2,241 3,376 20,621 
Interest Income on Nonaccrual Loans$— $— $— $— $— 

Arrow disaggregates its loan portfolio into the following four categories:

Commercial - Arrow offers a variety of loan options to meet the specific needs of our commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. In the event of default by the borrower, Arrow may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees to support the borrowing, as permitted by applicable law.

Commercial Real Estate - Arrow offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are typically secured by first liens on the real estate, which may include apartments, hotels, commercial structures, housing businesses, healthcare facilities, and both owner- and non-owner-occupied facilities. Arrow also offers commercial construction and land development loans to finance projects. These real estate loans are also typically secured by first liens on the real estate, which may include apartments, hotels, commercial structures, housing businesses, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete
project. Arrow’s Commercial Real Estate loans are primarily located within the footprint of the Company’s branch network, with some loans extending into the greater upstate New York area. Arrow does not provide Commercial Real Estate loans in major metropolitan areas such as New York City, Boston, etc.

Consumer Loans - This category is primarily comprised of automobile loans. Arrow primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most automobile loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Automobile loans are underwritten on a secured basis using the underlying collateral being financed. Arrow also offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, Arrow also offers personal lines of credit and overdraft protection. Several of these consumer loans are unsecured, which carry a higher risk of loss.

Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. Arrow originates fixed-rate and adjustable-rate one-to-four-family residential real estate loans for the construction, purchase of real estate or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in Arrow's market area. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 80% of the purchase price or appraised value (whichever is lower), or have private mortgage insurance. Arrow’s underwriting analysis for residential mortgage loans typically includes credit verification, independent appraisals, and a review of the borrower’s financial condition. Mortgage title insurance and hazard insurance are normally required. It is Arrow's general practice to underwrite residential real estate loans to secondary market standards. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. In addition, Arrow offers fixed home equity loans, as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses.  Arrow originates home equity lines of credit and second mortgage loans (loans secured by a second junior lien position on one-to-four-family residential real estate).  Risk is generally reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows.  A security interest, with title insurance when necessary, is taken in the underlying real estate.
Schedule of Supplemental Loan Information
20252024
Supplemental Information:
Unamortized deferred loan origination costs, net of deferred loan
  origination fees, included in the above balances		$6,031 $6,155 
Overdrawn deposit accounts, included in the above balances535 1,112 
Residential real estate loans serviced for Freddie Mac, not included
   in the balances above		179,081 168,653 

Allowance for Credit Losses

Loan segments were selected by class code and application code to ensure each segment is comprised of loans with homogenous loan characteristics and similar risk profiles. The resulting loan segments are commercial, commercial real estate, consumer and residential real estate loans. The consumer segment is mainly comprised of automobile loans, and since they are relatively short-term in nature, with similar dollar amounts and collateral, the vintage analysis method was selected to determine the credit loss reserve. The vintage method utilizes Arrow loan data exclusively as the method calculates a loss rate based on the total origination balance of the loans by year and the charge-off and recovery rate of the same origination year. Arrow maintains, over the life of the loan, the loss curve by vintage year. The discounted cash flow method (DCF) is used to calculate the reserve for credit losses for the commercial, commercial real estate and residential real estate segments.
The following table details activity in the allowance for credit losses on loans for the twelve months ended December 31, 2025 and December 31, 2024

Allowance for Credit Losses
Commercial
CommercialReal EstateConsumerResidentialTotal
Rollforward of the Allowance for Credit Losses for the Year Ended:
December 31, 2024$1,925 $14,507 $3,882 $13,284 $33,598 
Charge-offs— (3,818)(5,685)(51)(9,554)
Recoveries— 76 2,928 — 3,004 
Provision1,029 4,495 2,965 (1,215)7,274 
December 31, 2025$2,954 $15,260 $4,090 $12,018 $34,322 
December 31, 2023$1,958 $15,521 $2,566 $11,220 $31,265 
Charge-offs(9)— (5,837)(49)(5,895)
Recoveries— — 3,048 — 3,048 
Provision(24)(1,014)4,105 2,113 5,180 
December 31, 2024$1,925 $14,507 $3,882 $13,284 $33,598 
December 31, 2022$1,961 $15,213 $2,585 $10,193 $29,952 
Charge-offs— — (5,123)(54)(5,177)
Recoveries— — 3,109 — 3,109 
Provision(3)308 1,995 1,081 3,381 
December 31, 2023$1,958 $15,521 $2,566 $11,220 $31,265 

Estimated Credit Losses on Off-Balance Sheet Credit Exposures Recognized as Other Liabilities

Financial instrument credit losses apply to off-balance sheet credit exposures such as unfunded loan commitments and standby letters of credit. A liability for expected credit losses for off-balance sheet exposures is recognized if the entity has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable by the entity. Changes in the allowance are reflected in other operating expenses within the non-interest expense category. As of December 31, 2025 and 2024, estimated credit losses on unfunded commitment off-balance sheet credit exposure was $1.3 million and $1.6 million, respectively, and is included in other liabilities on the consolidated balance sheets.

Individually Evaluated Loans

Loans that do not share similar risk characteristics, which are primarily nonaccrual loans in excess of $250,000, are evaluated on an individual basis. For collateral-dependent financial assets, when repayment is expected to be provided substantially through the sale of the collateral, the Company measures expected credit losses using the fair value of the collateral less estimated costs to sell. When repayment is expected to be provided substantially through the operation of the collateral, expected credit losses are measured using the fair value of the collateral at the reporting date. The allowance for credit losses is recorded for the amount by which the loan’s amortized cost exceeds the fair value of the collateral, as applicable.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2025 and December 31, 2024:

December 31, 2025Collateral Type -Residential Real EstateCollateral Type - Commercial Real EstateTotal Loans
Commercial$— $— $— 
Commercial Real Estate— — — 
Consumer— — — 
Residential3,172 — 3,172 
Total$3,172 $— $3,172 
December 31, 2024Collateral Type -Residential Real EstateCollateral Type - Commercial Real EstateTotal Loans
Commercial$— $— $— 
Commercial Real Estate— 14,902 14,902 
Consumer— — — 
Residential1,417 — 1,417 
Total$1,417 $14,902 $16,319 

Through the provision for credit losses, an allowance for credit losses is maintained that reflects the best estimate of the calculated expected credit losses in Arrow's loan portfolio as of the balance sheet date. Additions are made to the allowance for credit losses through a periodic provision for credit losses. Actual credit losses are charged against the allowance for credit losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for credit losses.
Arrow's loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with certain criticized and classified commercial-related relationships. In addition, the independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in the commercial loan portfolio.
Arrow considers the need to qualitatively adjust expected credit loss estimates for information not already captured in the loss estimation process. See Note 2. Summary of Significant Accounting Policies, for discussion of the qualitative adjustments considered and utilized in the determination of the allowance for credit losses.

Loan Credit Quality Indicators and Modifications
Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction.
In some cases, the Company provides multiple types of concession on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, may be granted.
The following tables present the amortized cost basis of loans at December 31, 2025 that were both experiencing financial difficulty and modified during the year ended December 31, 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class financing receivable is also present below. The Company did not modify loans to borrowers experiencing financial difficulty during the year ended December 31, 2024.
Year Ended December 31, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Commercial$— $— $— $— $— $— — %
Commercial Real Estate— — — — — — — %
Consumer— — — — — — — %
Residential— 1,046 — — — — 0.08 %
Total$— $1,046 $— $— $— $— 0.03 %
The Company has not committed to lend additional amounts to the borrowers in the previous table.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months.
December 31, 2025
CurrentLoans Past Due 30-59 DaysLoans Past Due 60-89 DaysLoans Past Due 90 or more DaysTotal Loans Past Due
Commercial$— $— $— $— $— 
Commercial Real Estate— — — — — 
Consumer— — — — — 
Residential1,046 — — — — 
Total$1,046 $— $— $— $— 
The following table presents the financial effect of the loan modification presented above to borrowers experiencing financial difficulty for the year ended December 31, 2025. Loan modifications currently included in the Payment Delay column of the tables above are modifications to bring past due balances current, without extending the term, adjusting the interest rate, or forgiving any principal amounts. The modifications increased the monthly payment amounts for a certain number of months of the remaining term of the loans. Present value of cash flows under the new terms have not changed by 10% or more in comparison to the original terms.

Year Ended December 31, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension
Commercial$— — %0
Commercial Real Estate— — %0
Consumer— — %0
Residential— — %0
Total$— — %0
The following table presents credit quality indicators by total loans amortized cost basis by origination year as of December 31, 2025 and December 31, 2024:
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
December 31, 202520252024202320222021Prior
Commercial:
Risk rating
Satisfactory$40,855 $41,908 $20,671 $15,915 $12,070 $19,917 $9,765 $161,101 
Special mention196 — 25 — — — — 221 
Substandard— — 410 92 — 2,896 1,009 4,407 
Doubtful— — — — — — — — 
Total
Commercial Loans		$41,051 $41,908 $21,106 $16,007 $12,070 $22,813 $10,774 $165,729 
Current-period
gross charge-offs		$— $— $— $— $— $— $— $— 
Commercial Real Estate:
Risk rating
Satisfactory$90,358 $113,616 $78,723 $128,103 $96,305 $264,374 $2,112 $773,591 
Special mention302 6,348 275 7,504 4,749 3,807 473 23,459 
Substandard2,127 — 341 4,104 304 14,069 264 21,209 
Doubtful— — — — — — — — 
Total Commercial
Real Estate Loans		$92,787 $119,964 $79,339 $139,711 $101,358 $282,250 $2,849 $818,259 
Current-period
gross charge-offs		$— $— $— $— $1,656 $2,162 $— $3,818 
Consumer:
Risk rating
Performing$370,436 $281,349 $194,467 $144,210 $62,395 $20,796 $444 $1,074,097 
Nonperforming121 502 363 421 375 128 — 1,910 
Total
Consumer Loans		$370,557 $281,851 $194,830 $144,631 $62,770 $20,924 $444 $1,076,007 
Current-period
gross charge-offs		$291 $1,472 $1,380 $1,367 $904 $271 $— $5,685 
Residential:
Risk rating
Performing$144,618 $172,965 $160,802 $206,858 $170,889 $395,132 $135,483 $1,386,747 
Nonperforming204 1,041 337 1,966 342 2,291 170 6,351 
Total
Residential Loans		$144,822 $174,006 $161,139 $208,824 $171,231 $397,423 $135,653 $1,393,098 
Current-period
gross charge-offs		$— $— $— $20 $— $31 $— $51 
Total Loans$649,217 $617,729 $456,414 $509,173 $347,429 $723,410 $149,720 $3,453,093 
Total gross
charge-offs		$291 $1,472 $1,380 $1,387 $2,560 $2,464 $— $9,554 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
December 31, 202420242023202220212020Prior
Commercial:
Risk rating
Satisfactory$42,767 $28,988 $23,808 $16,941 $6,183 $19,211 $15,686 $153,584 
Special mention107 229 930 — 72 — 483 1,821 
Substandard— 280 264 — — 3,030 12 3,586 
Doubtful— — — — — — — — 
Total
Commercial Loans		$42,874 $29,497 $25,002 $16,941 $6,255 $22,241 $16,181 $158,991 
Current-period
gross charge-offs		$— $— $— $— $9 $— $— $9 
Commercial Real Estate:
Risk rating
Satisfactory$90,049 $96,783 $137,146 $109,086 $115,576 $187,202 $2,799 $738,641 
Special mention3,002 200 12,680 — — 9,506 — 25,388 
Substandard— 146 172 1,985 2,309 26,853 871 32,336 
Doubtful— — — — — — — — 
Total Commercial
Real Estate Loans		$93,051 $97,129 $149,998 $111,071 $117,885 $223,561 $3,670 $796,365 
Current-period
gross charge-offs		$— $— $— $— $— $— $— $— 
Consumer:
Risk rating
Performing$386,004 $297,698 $243,484 $121,803 $48,268 $18,994 $473 $1,116,724 
Nonperforming345 424 602 593 178 115 — 2,257 
Total
Consumer Loans		$386,349 $298,122 $244,086 $122,396 $48,446 $19,109 $473 $1,118,981 
Current-period
gross charge-offs		$1,272 $949 $1,669 $1,270 $434 $243 $— $5,837 
Residential:
Risk rating
Performing$162,087 $177,071 $225,398 $181,934 $106,695 $334,576 $128,687 $1,316,448 
Nonperforming— 201 254 201 464 2,386 250 3,756 
Total
Residential Loans		$162,087 $177,272 $225,652 $182,135 $107,159 $336,962 $128,937 $1,320,204 
Current-period
gross charge-offs		$— $— $— $— $— $49 $— $49 
Total Loans$684,361 $602,020 $644,738 $432,543 $279,745 $601,873 $149,261 $3,394,541 
Total gross
charge-offs		$1,272 $949 $1,669 $1,270 $443 $292 $— $5,895 

For the purposes of the table above, nonperforming consumer and residential loans were those loans on nonaccrual status or are 90 days or more past due and still accruing interest.
At December 31, 2025 and 2024, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $795 thousand and $2.6 million, respectively.
For the allowance calculation, an internally developed system of five credit quality indicators is used to rate the credit worthiness of each commercial loan defined as follows:
1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt.  Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified;
2) Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date.  "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Loans which might be assigned this credit quality indicator include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions;
3) Substandard - Loans classified as “substandard” are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any.  Loans in this category have well defined weaknesses that jeopardize the repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. “Substandard” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard;
4) Doubtful - Loans classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.  Although possibility of loss is extremely high, classification of these loans as “loss” has been deferred due to specific pending factors or events which may strengthen the value (e.g. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc.).  Loans classified as “doubtful” need to be placed on non-accrual; and
5) Loss - Loans classified as “loss” are considered uncollectible with collateral of such little value that their continuance as bankable assets is not warranted.  As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for credit losses.  

Commercial loans are generally evaluated on an annual basis depending on the size and complexity of the loan relationship, unless the credit related quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly.  The credit quality indicator is one of the factors used in assessing the level of incurred risk of loss in our commercial related loan portfolios.