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Leases | 9 Months Ended
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Sep. 30, 2024
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 Arrow to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, Arrow pays the variable payments to the lessor, and in other leases, Arrow pays the variable payments directly to the applicable third party. None of Arrow's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of Arrow for leases that have not commenced as of the reporting date. Arrow leases two 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, President of Stewart’s Shops Corp., serves as a Director on the Board of Directors of Arrow and its two subsidiary banks. The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2024 and September 30, 2023:
|  | Nine Months Ended
Finance Lease Amounts: | Classification | September 30, 2024 |  | September 30, 2023
Right-of-Use Assets | Premises and Equipment, Net | $ | 4,327 |  |  | $ | 4,504 |
Lease Liabilities | Finance Leases | 5,022 |  |  | 5,080 |
Operating Lease Amounts: |  |  |  |
Right-of-Use Assets | Other Assets | $ | 4,792 |  |  | $ | 4,978 |
Lease Liabilities | Other Liabilities | 5,007 |  |  | 5,179 |
Other Information: |  |  |  |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: |  |  |
Operating Outgoing Cash Flows From Finance Leases |  | $ | 142 |  |  | $ | 143 |
Operating Outgoing Cash Flows From Operating Leases |  | 471 |  |  | 781 |
Financing Outgoing Cash Flows From Finance Leases |  | 44 |  |  | 39 |
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities | — |  |  | — |
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities | 326 |  |  | 19 |
Weighted-average Remaining Lease Term - Finance Leases (Yrs.) |  | 25.58 |  | 26.54
Weighted-average Remaining Lease Term - Operating Leases (Yrs.) |  | 10.44 |  | 11.45
Weighted-average Discount Rate—Finance Leases |  | 3.75 | % |  | 3.75 | %
Weighted-average Discount Rate—Operating Leases |  | 3.37 | % |  | 3.01 | %
Lease cost information for Arrow's leases is as follows: |  |  |  |
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Lease Cost: |  |  |  |  |  |  |
Finance Lease Cost: |  |  |  |  |  |  |
Reduction of Right-of-Use Assets | $ | 44 |  |  | $ | 44 |  |  | $ | 132 |  |  | $ | 132 |
Interest on Lease Liabilities | 47 |  |  | 46 |  |  | 142 |  |  | 143 |
Operating Lease Cost | 203 |  |  | 195 |  |  | 597 |  |  | 786 |
Short-term Lease Cost | 7 |  |  | 11 |  |  | 28 |  |  | 46 |
Variable Lease Cost | 32 |  |  | 58 |  |  | 177 |  |  | 179 |
Total Lease Cost | $ | 333 |  |  | $ | 354 |  |  | $ | 1,076 |  |  | $ | 1,286 |
Future Lease Payments at September 30, 2024 are as follows: |
| Operating Leases |  | Financing Leases |
Twelve Months Ended: |  |  |  |
9/30/2025 | $ | 796 |  |  | $ | 258 |  |
9/30/2026 | 715 |  |  | 268 |  |
9/30/2027 | 659 |  |  | 268 |  |
9/30/2028 | 549 |  |  | 268 |  |
9/30/2029 | 534 |  |  | 273 |  |
Thereafter | 2,745 |  |  | 6,791 |  |
Total Undiscounted Cash Flows | $ | 5,998 |  |  | $ | 8,126 |  |
Less: Net Present Value Adjustment | 991 |  |  | 3,104 |  |
Lease Liability | $ | 5,007 |  |  | $ | 5,022 |  |
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 Arrow to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, Arrow pays the variable payments to the lessor, and in other leases, Arrow pays the variable payments directly to the applicable third party. None of Arrow's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of Arrow for leases that have not commenced as of the reporting date. Arrow leases two 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, President of Stewart’s Shops Corp., serves as a Director on the Board of Directors of Arrow and its two subsidiary banks. The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2024 and September 30, 2023:
|  | Nine Months Ended
Finance Lease Amounts: | Classification | September 30, 2024 |  | September 30, 2023
Right-of-Use Assets | Premises and Equipment, Net | $ | 4,327 |  |  | $ | 4,504 |
Lease Liabilities | Finance Leases | 5,022 |  |  | 5,080 |
Operating Lease Amounts: |  |  |  |
Right-of-Use Assets | Other Assets | $ | 4,792 |  |  | $ | 4,978 |
Lease Liabilities | Other Liabilities | 5,007 |  |  | 5,179 |
Other Information: |  |  |  |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: |  |  |
Operating Outgoing Cash Flows From Finance Leases |  | $ | 142 |  |  | $ | 143 |
Operating Outgoing Cash Flows From Operating Leases |  | 471 |  |  | 781 |
Financing Outgoing Cash Flows From Finance Leases |  | 44 |  |  | 39 |
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities | — |  |  | — |
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities | 326 |  |  | 19 |
Weighted-average Remaining Lease Term - Finance Leases (Yrs.) |  | 25.58 |  | 26.54
Weighted-average Remaining Lease Term - Operating Leases (Yrs.) |  | 10.44 |  | 11.45
Weighted-average Discount Rate—Finance Leases |  | 3.75 | % |  | 3.75 | %
Weighted-average Discount Rate—Operating Leases |  | 3.37 | % |  | 3.01 | %
Lease cost information for Arrow's leases is as follows: |  |  |  |
| Three Months Ended |  | Nine Months Ended
| September 30, 2024 |  | September 30, 2023 |  | September 30, 2024 |  | September 30, 2023
Lease Cost: |  |  |  |  |  |  |
Finance Lease Cost: |  |  |  |  |  |  |
Reduction of Right-of-Use Assets | $ | 44 |  |  | $ | 44 |  |  | $ | 132 |  |  | $ | 132 |
Interest on Lease Liabilities | 47 |  |  | 46 |  |  | 142 |  |  | 143 |
Operating Lease Cost | 203 |  |  | 195 |  |  | 597 |  |  | 786 |
Short-term Lease Cost | 7 |  |  | 11 |  |  | 28 |  |  | 46 |
Variable Lease Cost | 32 |  |  | 58 |  |  | 177 |  |  | 179 |
Total Lease Cost | $ | 333 |  |  | $ | 354 |  |  | $ | 1,076 |  |  | $ | 1,286 |
Future Lease Payments at September 30, 2024 are as follows: |
| Operating Leases |  | Financing Leases |
Twelve Months Ended: |  |  |  |
9/30/2025 | $ | 796 |  |  | $ | 258 |  |
9/30/2026 | 715 |  |  | 268 |  |
9/30/2027 | 659 |  |  | 268 |  |
9/30/2028 | 549 |  |  | 268 |  |
9/30/2029 | 534 |  |  | 273 |  |
Thereafter | 2,745 |  |  | 6,791 |  |
Total Undiscounted Cash Flows | $ | 5,998 |  |  | $ | 8,126 |  |
Less: Net Present Value Adjustment | 991 |  |  | 3,104 |  |
Lease Liability | $ | 5,007 |  |  | $ | 5,022 |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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