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Regulatory Matters | 12 Months Ended
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Dec. 31, 2022
Equity [Abstract] |
Regulatory Matters | REGULATORY MATTERS (Dollars in Thousands) In the normal course of business, Arrow and its subsidiaries operate under certain regulatory restrictions, such as the extent and structure of covered inter-company borrowings and maintenance of reserve requirement balances. The principal source of the funds for the payment of stockholder dividends by Arrow has been from dividends declared and paid to Arrow by its bank subsidiaries. As of December 31, 2022, the maximum amount that could have been paid by subsidiary banks to Arrow, without prior regulatory approval, was approximately $88.8 million. Under current Federal Reserve regulations, Arrow is prohibited from borrowing from the subsidiary banks unless such borrowings are secured by specific obligations. Additionally, the maximum of any such borrowings from any one subsidiary bank (aggregated with all other "covered transactions" between the bank and Arrow) is limited to 10% of that bank’s capital and surplus. Loans and other covered transactions between any one subsidiary bank and all of its affiliates cannot exceed 20% of that bank's capital and surplus. Arrow and its subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory--and possibly additional discretionary--actions by regulators that, if undertaken, could have a direct material effect on an institution’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Arrow and its subsidiary banks must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Current quantitative measures established by regulation to ensure capital adequacy require Arrow and its subsidiary banks to maintain minimum capital amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2022 and 2021, that Arrow and both subsidiary banks meet all capital adequacy requirements to which they are subject. The regulatory capital requirements incorporate a capital concept, the so-called "capital conservation buffer" (set at 2.5%, after full phase-in), which must be added to each of the minimum required risk-based capital ratios (i.e., the minimum CET1 ratio, the minimum Tier 1 risk-based capital ratio and the minimum total risk-based capital ratio). As of January 1, 2019, the capital conservation buffer increased to 2.50% of risk weighted assets. In 2020, federal bank regulators introduced an optional simplified measure of capital adequacy for qualifying community banking organizations (CBLR). A qualifying community banking organization that opts into the CBLR framework and meets all the requirements under the CBLR framework will be considered to have met the well-capitalized ratio requirements under the “prompt corrective action” regulations and will not be required to report or calculate risk-based capital ratios. The CBLR final rule became effective as of January 1, 2020, and Arrow and both subsidiary banks have opted out of utilizing the CBLR framework. Therefore, the Capital Rules promulgated under Dodd-Frank remain applicable to Arrow and both subsidiary banks. As of December 31, 2022, Arrow and both subsidiary banks qualified as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” Arrow and its subsidiary banks must maintain minimum total risk-based, Tier I risk-based, Tier I leverage, and CET1 risk-based ratios as set forth in the table below. There are no conditions or events that management believes have changed Arrow’s or its subsidiary banks’ categories. The actual capital amounts and ratios for Arrow and its subsidiary banks, Glens Falls National and Saratoga National, are presented in the table below as of December 31, 2022 and 2021:
| Actual |  | Minimum Amounts For Capital Adequacy Purposes (including "capital conservation buffer") |  | Minimum Amounts To Be Well-Capitalized
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | $ | 435,857 |  |  | 15.1 | % |  | $ | 303,079 |  |  | 10.5 | % |  | $ | 288,647 |  |  | 10.0 | %
Glens Falls National | 315,458 |  |  | 14.3 | % |  | 231,630 |  |  | 10.5 | % |  | 220,600 |  |  | 10.0 | %
Saratoga National | 104,279 |  |  | 15.5 | % |  | 70,641 |  |  | 10.5 | % |  | 67,277 |  |  | 10.0 | %
Tier I Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
| Actual |  | Minimum Amounts For Capital Adequacy Purposes (including "capital conservation buffer") |  | Minimum Amounts To Be Well-Capitalized
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
Arrow | 404,059 |  |  | 14.0 | % |  | 245,322 |  |  | 8.5 | % |  | 230,891 |  |  | 8.0 | %
Glens Falls National | 292,134 |  |  | 13.2 | % |  | 188,117 |  |  | 8.5 | % |  | 177,051 |  |  | 8.0 | %
Saratoga National | 95,891 |  |  | 14.3 | % |  | 56,998 |  |  | 8.5 | % |  | 53,645 |  |  | 8.0 | %
Tier I Capital (to Average Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | 404,059 |  |  | 9.8 | % |  | 164,922 |  |  | 4.0 | % |  | 206,153 |  |  | 5.0 | %
Glens Falls National | 292,134 |  |  | 9.0 | % |  | 129,837 |  |  | 4.0 | % |  | 162,297 |  |  | 5.0 | %
Saratoga National | 95,891 |  |  | 10.5 | % |  | 36,530 |  |  | 4.0 | % |  | 45,662 |  |  | 5.0 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | 384,003 |  |  | 13.3 | % |  | 202,107 |  |  | 7.0 | % |  | 187,671 |  |  | 6.5 | %
Glens Falls National | 292,078 |  |  | 13.2 | % |  | 154,890 |  |  | 7.0 | % |  | 143,826 |  |  | 6.5 | %
Saratoga National | 95,891 |  |  | 14.3 | % |  | 46,940 |  |  | 7.0 | % |  | 43,587 |  |  | 6.5 | %
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | $ | 400,661 |  |  | 15.7 | % |  | $ | 267,958 |  |  | 10.5 | % |  | $ | 255,198 |  |  | 10.0 | %
Glens Falls National | 295,047 |  |  | 15.1 | % |  | 205,165 |  |  | 10.5 | % |  | 195,395 |  |  | 10.0 | %
Saratoga National | 90,924 |  |  | 15.2 | % |  | 62,809 |  |  | 10.5 | % |  | 59,818 |  |  | 10.0 | %
Tier I Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | 371,556 |  |  | 14.6 | % |  | 216,317 |  |  | 8.5 | % |  | 203,592 |  |  | 8.0 | %
Glens Falls National | 274,208 |  |  | 14.1 | % |  | 165,303 |  |  | 8.5 | % |  | 155,579 |  |  | 8.0 | %
Saratoga National | 83,432 |  |  | 13.9 | % |  | 51,020 |  |  | 8.5 | % |  | 48,018 |  |  | 8.0 | %
Tier I Capital (to Average Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | 371,556 |  |  | 9.2 | % |  | 161,546 |  |  | 4.0 | % |  | 201,933 |  |  | 5.0 | %
Glens Falls National | 274,208 |  |  | 8.6 | % |  | 127,539 |  |  | 4.0 | % |  | 159,423 |  |  | 5.0 | %
Saratoga National | 83,432 |  |  | 9.8 | % |  | 34,054 |  |  | 4.0 | % |  | 42,567 |  |  | 5.0 | %
Common Equity Tier 1 Capital (to Risk Weighted Assets): |  |  |  |  |  |  |  |  |  |  |
Arrow | 351,497 |  |  | 13.8 | % |  | 178,296 |  |  | 7.0 | % |  | 165,560 |  |  | 6.5 | %
Glens Falls National | 274,149 |  |  | 14.1 | % |  | 136,102 |  |  | 7.0 | % |  | 126,381 |  |  | 6.5 | %
Saratoga National | 83,432 |  |  | 13.9 | % |  | 42,016 |  |  | 7.0 | % |  | 39,015 |  |  | 6.5 | %

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (c)(2) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(2) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI https://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 + Details
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