Leases

12 Months Ended

Dec. 31, 2025

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 the Company to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, the Company pays the variable payments to the lessor, and in other leases, the Company pays the variable payments directly to the applicable third party. None of the Company's current leases include any residual value guarantees or any subleases, and there are no significant rights or obligations of the Company for leases that have not commenced as of the reporting date.

Arrow leases three of its branch offices, at market rates, from Stewart’s Shops Corp.  Additionally, on June 14th, 2024, Arrow entered into a sale-leaseback agreement with Stewart's Shops Corp. for a bank branch location. The sale price of the property was $1.1 million which resulted in a gain of $377 thousand. The lease agreement began in June 2024 and runs through May 2029, with rent totaling $5 thousand per month for the remainder of the lease. Mr. Gary C. Dake, CEO of Stewart’s Shops Corp., served as a Director on the Board of Directors for Arrow and Arrow Bank. Mr. Dake retired from the Company's Board at the Annual Meeting on June 4, 2025.

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2025 and December 31, 2024:

		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2025			December 31, 2024
Right-of-Use Assets	Premises and Equipment, Net	$	4,106		$	4,283
Lease Liabilities	Finance Leases	4,929			5,005
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,177		$	4,628
Lease Liabilities	Other Liabilities	4,392			4,842
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		182			189
Operating Outgoing Cash Flows From Operating Leases		844			636
Financing Outgoing Cash Flows From Finance Leases		76			61
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		395			326
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		24.38			25.58
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		9.56			10.44
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.44		%	3.37		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-Use Assets	$	44	$	44	$	177	$	176
Interest on Lease Liabilities	47		47		182		189
Operating Lease Cost	207		202		828		799
Short-term Lease Cost	17		10		74		38
Variable Lease Cost	68		57		172		234
Total Lease Cost	$	383	$	360	$	1,433	$	1,436

Future Lease Payments at December 31, 2025 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2025	$	770	$	267
12/31/2026	703		268
12/31/2027	620		268
12/31/2028	590		275
12/31/2029	482		290
Thereafter	2,033		6,431
Total Undiscounted Cash Flows	5,198		7,799
Less: Net Present Value Adjustment	806		2,870
Lease Liability	$	4,392	$	4,929

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 the Company to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, the Company pays the variable payments to the lessor, and in other leases, the Company pays the variable payments directly to the applicable third party. None of the Company's current leases include any residual value guarantees or any subleases, and there are no significant rights or obligations of the Company for leases that have not commenced as of the reporting date.

Arrow leases three of its branch offices, at market rates, from Stewart’s Shops Corp.  Additionally, on June 14th, 2024, Arrow entered into a sale-leaseback agreement with Stewart's Shops Corp. for a bank branch location. The sale price of the property was $1.1 million which resulted in a gain of $377 thousand. The lease agreement began in June 2024 and runs through May 2029, with rent totaling $5 thousand per month for the remainder of the lease. Mr. Gary C. Dake, CEO of Stewart’s Shops Corp., served as a Director on the Board of Directors for Arrow and Arrow Bank. Mr. Dake retired from the Company's Board at the Annual Meeting on June 4, 2025.

The following includes quantitative data related to the Company's leases as of and for the twelve months ended December 31, 2025 and December 31, 2024:

		Twelve Months Ended
Finance Lease Amounts:	Classification	December 31, 2025			December 31, 2024
Right-of-Use Assets	Premises and Equipment, Net	$	4,106		$	4,283
Lease Liabilities	Finance Leases	4,929			5,005
Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,177		$	4,628
Lease Liabilities	Other Liabilities	4,392			4,842
Other Information:
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		182			189
Operating Outgoing Cash Flows From Operating Leases		844			636
Financing Outgoing Cash Flows From Finance Leases		76			61
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		395			326
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		24.38			25.58
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		9.56			10.44
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.44		%	3.37		%

Lease cost information for the Company's leases is as follows:
	Three Months Ended				Twelve Months Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Lease Cost:
Finance Lease Cost:
Reduction in the Carrying Amount of Right-of-Use Assets	$	44	$	44	$	177	$	176
Interest on Lease Liabilities	47		47		182		189
Operating Lease Cost	207		202		828		799
Short-term Lease Cost	17		10		74		38
Variable Lease Cost	68		57		172		234
Total Lease Cost	$	383	$	360	$	1,433	$	1,436

Future Lease Payments at December 31, 2025 are as follows:
	Operating Leases		Finance Leases
Twelve Months Ended:
12/31/2025	$	770	$	267
12/31/2026	703		268
12/31/2027	620		268
12/31/2028	590		275
12/31/2029	482		290
Thereafter	2,033		6,431
Total Undiscounted Cash Flows	5,198		7,799
Less: Net Present Value Adjustment	806		2,870
Lease Liability	$	4,392	$	4,929