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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION (Dollars In Thousands, Except Share and Per Share Amounts) Arrow has established three stock-based compensation plans: a Long Term Incentive Plan, an Employee Stock Purchase Plan (ESPP) and an Employee Stock Ownership Plan (ESOP). All share and per share data have been adjusted for the September 26, 2023 3% stock dividend. Long Term Incentive Plan The Long Term Incentive Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, performance units and performance shares. The Compensation Committee of the Board of Directors administers the Long Term Incentive Plan. Restricted Stock Awards - In May 2024, the Company granted restricted stock awards which will generally vest over a four-year period. Unvested restricted stock will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions. Grantees of restricted stock awards are entitled to receive all dividends and distributions declared and paid on restricted stock, or cash payments equivalent to such dividends or distributions, including those declared and paid during the vesting period. The following table summarizes information about restricted stock awards for the year to date period ended June 30, 2024:
| Restricted Stock Awards |
Outstanding at January 1, 2024 | — |  |
Granted | 22,230 |  |
Vested | (412) |  |
Forfeited | — |  |
Outstanding at June 30, 2024 | 21,818 |  |
The following table presents information on the amounts expensed related to restricted stock for the three and six month periods ended June 30, 2024 and 2023:
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Amount expensed |  | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |
Stock Options - Options may be granted at a price no less than the greater of the par value or fair market value of such shares on the date on which such option is granted, and generally expire ten years from the date of grant. The options usually vest over a four-year period. The following table summarizes information about stock option activity for the year to date period ended June 30, 2024:
| Shares |  | Weighted Average Exercise Price
Outstanding at January 1, 2024 | 305,308 |  |  | $ | 28.96 |
Exercised | (8,620) |  |  | 19.33 |
Forfeited | (39,805) |  |  | 28.45 |
Outstanding at June 30, 2024 | 256,883 |  |  | 29.36 |
Vested at Period-End | 201,181 |  |  | 28.76 |
Expected to Vest | 55,702 |  |  | 31.55 |
The following table presents information on the amounts expensed related to stock options for the three and six month periods ended June 30, 2024 and 2023:
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Amount expensed |  | $ | 81 |  |  | $ | 87 |  |  | $ | 159 |  |  | $ | 172 |
Restricted Stock Units - Historically, the Company has granted restricted stock units which give the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock unit is the market value of Company stock on the date of grant. 100% of the restricted stock unit awards vest three years from the grant date, unless vested or forfeited prior to vesting in accordance with the terms of the award. Once vested, the restricted stock units are no longer forfeitable. Vested units settle upon retirement, as defined in the Arrow retirement plan, of the recipient. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions. There were no restricted stock units outstanding at any time during the three or six month periods ended June 30, 2024. The following table summarizes information about restricted stock unit activity for the six month period ended June 30, 2023:
| Restricted Stock Units |  | Weighted Average Grant Date Fair Value
Non-vested at January 1, 2023 | 13,925 |  |  | 30.47 |
Granted | 5,164 |  |  | 31.47 |
Vested | (4,307) |  |  | 31.35 |
Non-vested at June 30, 2023 | 14,782 |  |  | 30.56 |
The following table presents information on the amounts expensed related to restricted stock units for the periods ended June 30, 2024 and 2023:
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Amount expensed |  | $ | — |  |  | $ | 38 |  |  | $ | — |  |  | $ | 75 |
Employee Stock Purchase Plan In April 2023, Arrow suspended the operation of the prior ESPP (the "Prior ESPP") as a result of the now resolved delay in filing the Annual Report on Form 10-K for the year ended December 21, 2022 (the "2022 Form 10-K") and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the "2023 Q1 Form 10-Q") and the related effects under applicable securities laws. In October 2023, the Board of Directors approved the adoption of a new ESPP intended to satisfy the requirements of Section 423 of the Internal Revenue Code, which was effective January 1, 2024 (the "Qualified ESPP"). Under the Qualified ESPP, the amount of the discount is 10% below market price. Under the Prior ESPP, the amount of the discount was 5% below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. The Qualified ESPP is considered a compensatory plan. The Qualified ESPP was approved by Arrow shareholders at the annual meeting of shareholders on June 5, 2024. Employee Stock Ownership Plan Arrow maintains an ESOP, pursuant to which substantially all employees of Arrow and its subsidiaries are eligible to participate upon satisfaction of applicable service requirements. The Company may make, and historically has made, a cash contribution to the ESOP each year.

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