Investment Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES (In Thousands)

The following table is the schedule of Available-For-Sale Securities at March 31, 2026 and December 31, 2025:


Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
March 31, 2026
Available-For-Sale Securities, at Amortized Cost	$	78,523	$	25,000	$	200	$	408,303	$	26,250	$	538,276
Gross Unrealized Gains	1,352		—		—		1,203		331		2,886
Gross Unrealized Losses	(73)		(198)		—		(22,031)		(57)		(22,359)
Available-For-Sale Securities, at Fair Value	79,802		24,802		200		387,475		26,524		518,803
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											264,016

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	—	$	15,000	$	—	$	111	$	—	$	15,111
From 1 - 5 Years	73,465		10,000		200		39,288		1,000		123,953
From 5 - 10 Years	5,058		—		—		64,801		25,250		95,109
Over 10 Years	—		—		—		304,103		—		304,103

Maturities of Debt Securities, at Fair Value:
Within One Year	$	—	$	14,856	$	—	$	111	$	—	$	14,967
From 1 - 5 Years	74,817		9,946		200		38,856		980		124,799
From 5 - 10 Years	4,985		—		—		60,630		25,544		91,159
Over 10 Years	—		—		—		287,878		—		287,878

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	4,985	$	—	$	—	$	75,348	$	9,213	$	89,546
12 Months or Longer	—		24,802		—		184,721		980		210,503
Total	$	4,985	$	24,802	$	—	$	260,069	$	10,193	$	300,049
Number of Securities in a Continuous Loss Position	1		3		—		90		8		102

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	73	$	—	$	—	$	896	$	37	$	1,006
12 Months or Longer	—		198		—		21,135		20		21,353
Total	$	73	$	198	$	—	$	22,031	$	57	$	22,359















December 31, 2025
Available-For-Sale Securities, at Amortized Cost	$	78,436	$	25,000	$	200	$	385,766	$	23,500	$	512,902
Gross Unrealized Gains	2,139		—		—		2,153		194		4,486
Gross Unrealized Losses	(12)		(184)		—		(21,238)		(86)		(21,520)
Available-For-Sale Securities, at Fair Value	80,563		24,816		200		366,681		23,608		495,868
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											234,933

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	5,047	$	—	$	—	$	13,154	$	4,436	$	22,637


Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
12 Months or Longer	—		24,816		—		193,635		979		219,430
Total	$	5,047	$	24,816	$	—	$	206,789	$	5,415	$	242,067
Number of Securities in a Continuous Loss Position	1		3		—		83		4		91

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	12	$	—	$	—	$	8	$	64	$	84
12 Months or Longer	—		184		—		21,230		22		21,436
Total	$	12	$	184	$	—	$	21,238	$	86	$	21,520

There was no allowance for credit losses for the AFS debt securities portfolio at either March 31, 2026 or December 31, 2025.

The following table is the schedule of Held-To-Maturity Securities at March 31, 2026 and December 31, 2025:


Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
March 31, 2026
Held-To-Maturity Securities, at Amortized Cost	$	62,081	$	3,565	$	65,646

Gross Unrealized Losses	(246)		(79)		(325)
Held-To-Maturity Securities, at Fair Value	61,835		3,486		65,321
Held-To-Maturity Securities, Pledged as Collateral, at Carrying Value					33,703
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					33,378

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	46,161	$	—	$	46,161
From 1 - 5 Years	14,560		2,261		16,821
From 5 - 10 Years	1,360		—		1,360
Over 10 Years	—		1,304		1,304

Maturities of Debt Securities, at Fair Value:
Within One Year	$	46,095	$	—	$	46,095
From 1 - 5 Years	14,385		2,222		16,607
From 5 - 10 Years	1,355		—		1,355
Over 10 Years	—		1,264		1,264

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	792	$	—	$	792
12 Months or Longer	31,058		3,485		34,543
Total	$	31,850	$	3,485	$	35,335


Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
Number of Securities in a Continuous Loss Position	109		16		125

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	3	$	—	$	3
12 Months or Longer	243		79		322
Total	$	246	$	79	$	325









December 31, 2025
Held-To-Maturity Securities, at Amortized Cost	$	62,870	$	4,105	$	66,975

Gross Unrealized Losses	(324)		(82)		(406)
Held-To-Maturity Securities, at Fair Value	62,546		4,023		66,569
Held-To-Maturity Securities, Pledged as Collateral, at Carrying Value					35,078
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					34,672

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	400	$	—	$	400
12 Months or Longer	32,138		4,023		36,161
Total	$	32,538	$	4,023	$	36,561
Number of Securities in a Continuous Loss Position	109		16		125

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	—
12 Months or Longer	324		82		406
Total	$	324	$	82	$	406

In the tables above, maturities of mortgage-backed securities are included based on their contractual lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Securities in a continuous loss position, in the tables above for March 31, 2026 and December 31, 2025 do not reflect any material deterioration of the credit worthiness of the issuing entities.

Arrow evaluates AFS debt securities in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or non-credit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized within the allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings via credit loss expense. Arrow determined that at March 31, 2026 and December 31, 2025, gross unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Arrow does not intend to sell, nor is it more likely than not that Arrow will be required to sell, any securities before recovery of its amortized cost basis, which may be at maturity. Therefore, Arrow carried no allowance for credit loss at March 31, 2026 or December 31, 2025 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during the three months ended March 31, 2026 or the year ended December 31, 2025.

Arrow's HTM debt securities are comprised of U.S. government-sponsored enterprises (GSEs) or state and municipal obligations. GSE securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Arrow determined that the expected credit loss on its HTM debt portfolio was immaterial and therefore no allowance for credit loss was recorded as of March 31, 2026.

The following table is the schedule of Equity Securities at March 31, 2026 and December 31, 2025:

Equity Securities

March 31, 2026

December 31, 2025

Equity Securities, at Fair Value

$5,742

$5,597

The following is a summary of realized and unrealized gains and losses recognized in income on equity securities during the three month periods ended March 31, 2026 and 2025:


	Three Months Ended March 31,
	2026		2025
Net Gain on Equity Securities	$	145	$	317
Less: Net gain recognized during the reporting period on equity securities sold during the period	—		—
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date	$	145	$	317