Retirement Benefit Plans

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Retirement Benefit Plans

RETIREMENT BENEFIT PLANS (Dollars in Thousands)

Arrow sponsors qualified and nonqualified defined benefit pension plans and other postretirement benefit plans for its employees. Arrow maintains a non-contributory pension plan, which covers substantially all employees.    Arrow also maintains a supplemental non-qualified unfunded retirement plan to provide eligible employees of Arrow and its subsidiaries with benefits in excess of qualified plan limits imposed by federal tax law.

Arrow has multiple non-pension postretirement benefit plans. The health care, dental and life insurance plans are contributory, with participants’ contributions adjusted annually.  Arrow’s policy is to fund the cost of postretirement benefits based on the current cost of the underlying policies.  However, the health care plan provision allows for grandfathered participants to receive automatic increases of Company contributions each year based on the increase in inflation and limited to a maximum of 5%.  

As of December 31, 2025, Arrow uses the sex-distinct Amount-Weighted Pri-2012 Mortality Tables for employees, healthy retirees and contingent survivors, with mortality improvements projected using Scale MP-2021 on a generational basis for the Pension Plan and the sex-distinct White Collar Amount-Weighted Pri-2012 Mortality Tables for employees, healthy retirees and contingent survivors, with mortality improvements projected using Scale MP-2021 on a generational basis for the Select Executive Retirement Plan.

Segment interest rates of 4.07%, 5.15% and 6.01% were used in determining the present value of a lump sum payment/annuitizing cash balance accounts as of December 31, 2025

The following tables set forth changes in the plans’ benefit obligations (projected benefit obligation for pension benefits and accumulated benefit obligation for postretirement benefits) and changes in the plans’ assets and the funded status of the pension plans and other postretirement benefit plan at December 31:

Schedule of Defined Benefit Plan Disclosures

	Employees' Pension Plan		Select Executive Retirement Plan		Postretirement Benefit Plans
Defined Benefit Plan Funded Status
December 31, 2025
Fair Value of Plan Assets	$	67,055	$	—	$	—
Benefit Obligation	40,954		4,509		4,649
Funded Status of Plan	$	26,101	$	(4,509)	$	(4,649)
December 31, 2024
Fair Value of Plan Assets	$	63,893	$	—	$	—
Benefit Obligation	39,763		4,940		5,550
Funded Status of Plan	$	24,130	$	(4,940)	$	(5,550)
Change in Benefit Obligation
Benefit Obligation, at January 1, 2025	$	39,763	$	4,940	$	5,550
Service Cost 1	1,603		93		31
Interest Cost 2	2,324		298		279
Plan Participants' Contributions	—		—		535
Actuarial Loss (Gain)	1,997		(357)		(758)
Benefits Paid	(4,733)		(465)		(988)
Benefit Obligation, at December 31, 2025	$	40,954	$	4,509	$	4,649
Benefit Obligation, at January 1, 2024	$	42,914	$	6,904	$	6,221
Service Cost 1	1,692		78		45
Interest Cost 2	2,242		320		320
Plan Participants' Contributions	—		—		483
Amendments / Curtailments / Special Termination	441		—		—
Actuarial (Gain)	(3,256)		(1,770)		(497)
Benefits Paid	(4,270)		(592)		(1,022)
Benefit Obligation, at December 31, 2024	39,763		4,940		5,550

	Employees' Pension Plan		Select Executive Retirement Plan		Postretirement Benefit Plans
Change in Fair Value of Plan Assets
Fair Value of Plan Assets, at January 1, 2025	$	63,893	$	—	$	—
Actual Return on Plan Assets	7,895		—		—
Employer Contributions	—		465		453
Plan Participants' Contributions	—		—		535
Benefits Paid	(4,733)		(465)		(988)
Fair Value of Plan Assets, at December 31, 2025	$	67,055	$	—	$	—
Fair Value of Plan Assets, at January 1, 2024	$	59,199	$	—	$	—
Actual Return on Plan Assets	8,964		—		—
Employer Contributions	—		592		539
Plan Participants' Contributions	—		—		483
Benefits Paid	(4,270)		(592)		(1,022)
Fair Value of Plan Assets, at December 31, 2024	$	63,893	$	—	$	—
Accumulated Benefit Obligation at December 31, 2025	$	40,954	$	4,509	$	4,649
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2025
Prepaid Pension Asset	$	26,101	$	—	$	—
Accrued Benefit Liability	—		(4,509)		(4,649)
Net Benefit (Expense) Recognized	$	26,101	$	(4,509)	$	(4,649)
December 31, 2024
Prepaid Pension Asset	$	24,130	$	—	$	—
Accrued Benefit Liability	—		(4,940)		(5,550)
Net Benefit (Expense) Recognized	$	24,130	$	(4,940)	$	(5,550)
Amounts Recognized in Other Comprehensive (Loss) Income
For the Year Ended December 31, 2025
Net Unamortized Gain Arising During the Period	$	(1,927)	$	(358)	$	(758)
Amortization of Net (Gain)	—		—		510
Amortization of Prior Service Cost	(189)		(39)		(102)
Total Other Comprehensive (Loss) for Pension and      Other Postretirement Benefit Plans	$	(2,116)	$	(397)	$	(350)
For the Year Ended December 31, 2024
Net Unamortized Gain Arising During the Period	$	(8,509)	$	(1,770)	$	(498)
Prior Service Cost	441		—		—
Amortization of Net (Loss) Gain	—		(24)		337
Amortization of Prior Service Cost	(131)		(39)		(102)
Total Other Comprehensive (Loss) for Pension and      Other Postretirement Benefit Plans	$	(8,199)	$	(1,833)	$	(263)
For the Year Ended December 31, 2023
Net Unamortized Loss (Gain) Arising During the Period	$	(2,315)	$	358	$	(397)
Net Prior Service Cost Arising During the Period	526		—		—
Amortization of Net (Loss) Gain	(118)		(73)		353
Amortization of Prior Service Cost	(62)		(39)		(104)
Total Other Comprehensive (Loss) Gain for Pension and      Other Postretirement Benefit Plans	$	(1,969)	$	246	$	(148)

	Employees' Pension Plan			Select Executive Retirement Plan			Postretirement Benefit Plans
Accumulated Other Comprehensive Income
December 31, 2025
Net Actuarial Gain	$	(6,295)		$	(413)		$	(3,049)
Prior Service Cost	961			252			58
Total Accumulated Other Comprehensive (Loss), Before Tax	$	(5,334)		$	(161)		$	(2,991)
December 31, 2024
Net Actuarial Gain	$	(4,369)		$	(55)		$	(2,801)
Prior Service Cost	1,150			291			160
Total Accumulated Other Comprehensive (Loss) Income, Before Tax	$	(3,219)		$	236		$	(2,641)
Net Periodic Benefit Cost
For the Year Ended December 31, 2025
Service Cost 1	$	1,603		$	93		$	31
Interest Cost 2	2,324			298			279
Expected Return on Plan Assets 2	(3,971)			—			—
Amortization of Prior Service Cost 2	189			39			102
Amortization of Net Gain 2	—			—			(510)
Net Periodic Benefit Cost	$	145		$	430		$	(98)
For the Year Ended December 31, 2024
Service Cost 1	$	1,692		$	78		$	45
Interest Cost 2	2,242			320			320
Expected Return on Plan Assets 2	(3,710)			—			—
Amortization of Prior Service Cost 2	131			39			102
Amortization of Net Loss (Gain) 2	—			25			(337)
Net Periodic Benefit Cost	$	355		$	462		$	130
For the Year Ended December 31, 2023
Service Cost 1	$	1,593		$	570		$	56
Interest Cost 2	2,099			336			332
Expected Return on Plan Assets 2	(3,416)			—			—
Amortization of Prior Service Cost 2	62			39			104
Amortization of Net Loss (Gain) 2	118			73			(353)
Net Periodic Benefit Cost	$	456		$	1,018		$	139
Weighted-Average Assumptions Used in   Calculating Benefit Obligation
December 31, 2025
Discount Rate	5.99		%	6.11		%	6.07		%
Rate of Compensation Increase	4.00		%	4.00		%	4.00		%
Interest Rate Credit for Determining   Projected Cash Balance Account	4.70		%	4.70		%
Interest Rates segments to Annuitize Cash       Balance Account (Segment 1, Segment 2 and Segment 3,       respectively)	4.07%, 5.15% and 6.01%			4.07%, 5.15% and 6.01%
Interest Rates to Convert Annuities to Actuarially       Equivalent Lump Sum Amounts (Segment 1, Segment 2 and       Segment 3, respectively)	4.07%,5.15% and 6.01%			4.07%, 5.15% and 6.01%

	Employees' Pension Plan		Select Executive Retirement Plan		Postretirement Benefit Plans
December 31, 2024
Discount Rate	6.15	%	6.21	%	6.12	%
Rate of Compensation Increase	4.00	%	4.00	%	4.00	%
Interest Rate Credit for Determining   Projected Cash Balance Account	4.54	%	4.54	%
Weighted-Average Assumptions Used in   Calculating Net Periodic Benefit Cost
December 31, 2025
Discount Rate	5.99	%	6.21	%	6.12	%
Expected Long-Term Return on Plan Assets	6.50	%
Rate of Compensation Increase	4.00	%	4.00	%	4.00	%
Interest Rate Credit for Determining       Projected Cash Balance Account	4.54	%	4.54	%
Interest Rates to Annuitize Cash     Balance Account (Segment 1, Segment 2, and Segment 3,     respectively)	4.07%, 5.15% and 6.01%		4.07%, 5.15% and 6.01%
Interest Rates to Convert Annuities to Actuarially     Equivalent Lump Sum Amounts (Segment 1, Segment 2 and     Segment 3, respectively)	4.07%, 5.15% and 6.01%		4.07%, 5.15% and 6.01%
December 31, 2024
Discount Rate	5.52	%	5.53	%	5.51	%
Expected Long-Term Return on Plan Assets	6.50	%
Rate of Compensation Increase	4.00	%	4.00	%	4.00	%
Interest Rate Credit for Determining       Projected Cash Balance Account	4.66	%	4.66	%
Interest Rates to Annuitize Cash     Balance Account (Segment 1, Segment 2, and Segment 3,     respectively)	4.66%, 5.25% and 5.57%		4.66%, 5.25% and 5.57%
Interest Rates to Convert Annuities to Actuarially     Equivalent Lump Sum Amounts (Segment 1, Segment 2 and     Segment 3, respectively)	4.66%, 5.25% and 5.57%		4.66%, 5.25% and 5.57%
December 31, 2023
Discount Rate	5.59	%	5.61	%	5.62	%
Expected Long-Term Return on Plan Assets	6.50	%
Rate of Compensation Increase	3.50	%	3.50	%	3.50	%
Interest Rate Credit for Determining       Projected Cash Balance Account	3.99	%	3.99	%
Interest Rates to Annuitize Cash     Balance Account (Segment 1, Segment 2, and Segment 3,     respectively)	5.50%, 5.76% and 5.83%		5.50%, 5.76% and 5.83%
Interest Rates to Convert Annuities to Actuarially     Equivalent Lump Sum Amounts (Segment 1, Segment 2 and     Segment 3, respectively)	5.50%, 5.76% and 5.83%		5.50%, 5.76% and 5.76%

Footnotes:

1.Included in Salaries and Employee Benefits on the Consolidated Statements of Income

2.Included in Other Operating Expense on the Consolidated Statements of Income

Schedule of Defined Benefit Plan Disclosures

Information about Defined Benefit Plan Assets - Employees' Pension Plan

Fair Value Measurements Using:
Asset Category	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Percent of Total		Target Allocation Minimum		Target Allocation Maximum
December 31, 2025
Cash	$	—	$	—	$	—	$	—	—	%	—	%	15.0	%
Interest-Bearing Money Market Fund	484		—		—		484		0.7	%	—	%	15.0	%
Arrow Common Stock	6,117		—		—		6,117		9.1	%	—	%	10.0	%
North Country Funds - Equity 1	18,915		—		—		18,915		28.2	%
Other Mutual Funds - Equity	31,363		—		—		31,363		46.8	%
Total Equity Funds	50,278		—		—		50,278		75.0	%	55.0	%	85.0	%
Other Mutual Funds - Fixed Income	10,176		—		—		10,176		15.2	%	10.0	%	30.0	%
Total	$	67,055	$	—	$	—	$	67,055	100.0	%
December 31, 2024
Cash	$	—	$	—	$	—	$	—	—	%	—	%	15.0	%
Interest-Bearing Money Market Fund	2,699		—		—		2,699		4.2	%	—	%	15.0	%
Arrow Common Stock	5,593		—		—		5,593		8.8	%	—	%	10.0	%
North Country Funds - Equity 1	18,740		—		—		18,740		29.3	%
Other Mutual Funds - Equity	26,598		—		—		26,598		41.6	%
Total Equity Funds	45,338		—		—		45,338		70.9	%	55.0	%	85.0	%
Other Mutual Funds - Fixed Income	10,263		—		—		45,338		16.1	%
Total Fixed Income Funds	10,263		—		—		10,263		16.1	%	10.0	%	30.0	%
Total	$	63,893	—		—		$	63,893	100.0	%

Footnote:

1 The North Country Funds - Equity is a publicly traded mutual funds that was advised by Arrow's subsidiary, North Country

Investment Advisers, Inc. until the fund was transferred to a new investment advisor in the first half of 2025.

Schedule of Defined Benefit Plan Disclosures

	Employees' Pension Plan		Select Executive Retirement Plan		Postretirement Benefit Plans
Expected Future Benefit Payments
2026	$	3,119	$	478	$	503
2027	3,563		466		538
2028	3,196		443		524
2029	3,180		421		517
2030	3,408		401		514
2031 - 2035	16,806		1,823		2,037
Estimated Contributions During 2026	$	—	$	478	$	503

Assumed Health Care Cost Trend Rates
December 31, 2025
Health Care Cost Trend   Rate Assumed for Next Year	8.50	%
Rate to which the Cost Trend   Rate is Assumed to Decline   (the Ultimate Trend Rate)	4.04	%
Year that the Rate Reaches    the Ultimate Trend Rate	2075
December 31, 2024
Health Care Cost Trend   Rate Assumed for Next Year	7.75	%
Rate to which the Cost Trend   Rate is Assumed to Decline   (the Ultimate Trend Rate)	4.04	%
Year that the Rate Reaches    the Ultimate Trend Rate	2075

Fair Value of Plan Assets (Defined Benefit Plan):

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 Notes 2. Summary of Significant Accounting Policies and 17. Fair Values to the Consolidated Financial Statements.

The fair value of level 1 financial instruments in the table above are based on unadjusted, quoted market prices from exchanges in active markets.

In accordance with ERISA guidelines, the Board authorized the purchase of Arrow common stock up to 10% of the fair market value of the plan's assets at the time of acquisition.  

Pension Plan Investment Policies and Strategies:

The pension assets are held in trust and are invested for the exclusive purpose of providing benefits to participants.  The investment objective is to achieve an inflation-protected rate of return that meets the actuarial assumption which is used for funding purposes.  The investment strategy attempts to maximize the investment return on assets at a level of risk deemed appropriate by the Company while complying with ERISA and any applicable regulations and laws.  The investment strategy utilizes asset allocation as a principal determinant for establishing the risk/reward profile of the assets. Asset allocation ranges are established, periodically reviewed, and adjusted as funding levels, and participant benefit characteristics change. Active and passive investment management is employed to help enhance the risk/return profile of the assets.

The plan’s assets are invested in a diversified portfolio of equity securities comprised of companies with small, mid, and large capitalizations.  Both domestic and international equities are allowed to provide further diversification and opportunity for return in potentially higher growth economies with lower correlation of returns.  Growth and value styles of investment are employed to increase the diversification and offer varying opportunities for appreciation.  The fixed income portion of the plan may be invested in U.S. dollar denominated debt securities that shall be rated within the top four ratings categories by nationally recognized ratings agencies.   The fixed income portion will be invested without regard to industry or sector based on analysis of each target security’s structural and repayment features, current pricing and trading opportunities as well as credit quality of the issuer.  Individual bonds with ratings that fall below the plan’s rating requirements will be sold only when it is in the best interests of the plan.  Hybrid investments, such as convertible bonds, may be used to provide growth characteristics while offering some protection to declining equity markets by having a fixed income component.  Alternative investments such as Treasury Inflation Protected Securities, commodities, and REITs may be used to further enhance diversification while offering opportunities for return.  In accordance with ERISA guidelines, common stock of the Company may be purchased up to 10% of the fair market value of the plan’s assets at the time of acquisition.  Derivative investments are prohibited in the plan.  

The return on assets assumption was developed through review of historical market returns, historical asset class volatility and correlations, current market conditions, the plan’s past experience, and expectations on potential future market returns. The assumption represents a long-term average view of the performance of the assets in the plan, a return that may or may not be achieved during any one calendar year. The assumption is based on the return of the plan using the historical returns adjusted for the potential for lower than historical returns due to low interest rates and other items of potential impact.    

Cash Flows - We were not required to and we did not make any contribution to our qualified pension plan in 2025.  Arrow makes contributions for its postretirement benefits in an amount equal to actual expenses for the year.