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Loans | 6 Months Ended
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Jun. 30, 2026
Receivables [Abstract] |
Loans | LOANS (In Thousands) Loan Categories and Past Due Loans The following two tables present loan balances outstanding as of June 30, 2026 and December 31, 2025 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due when monthly payments are required. Loans held-for-sale of $777 thousand and $3.4 million as of June 30, 2026 and December 31, 2025, respectively, are included in the residential real estate balances for current loans.
Schedule of Past Due Loans by Loan Category
|  |  | Commercial |  |  |  |  |  |
| Commercial |  | Real Estate |  | Consumer |  | Residential |  | Total
June 30, 2026 |  |  |  |  |  |  |  |  |
Loans past due 30-59 days | $ | 239 |  |  | $ | — |  |  | $ | 11,015 |  |  | $ | 449 |  |  | $ | 11,703 |
Loans past due 60-89 days | 189 |  |  | 6,793 |  |  | 4,914 |  |  | 3,672 |  |  | 15,568 |
Loans past due 90 or more days | — |  |  | — |  |  | 1,216 |  |  | 2,561 |  |  | 3,777 |
Total loans past due | 428 |  |  | 6,793 |  |  | 17,145 |  |  | 6,682 |  |  | 31,048 |
Current loans | 172,629 |  |  | 830,668 |  |  | 1,066,024 |  |  | 1,396,172 |  |  | 3,465,493 |
Total Loans | $ | 173,057 |  |  | $ | 837,461 |  |  | $ | 1,083,169 |  |  | $ | 1,402,854 |  |  | $ | 3,496,541 |
December 31, 2025 |  |  |  |  |  |  |  |  |
Loans past due 30-59 days | $ | 584 |  |  | $ | — |  |  | $ | 13,476 |  |  | $ | 808 |  |  | $ | 14,868 |
Loans past due 60-89 days | 255 |  |  | 2,888 |  |  | 7,495 |  |  | 3,503 |  |  | 14,141 |
Loans past due 90 or more days | 195 |  |  | — |  |  | 1,886 |  |  | 3,517 |  |  | 5,598 |
Total loans past due | 1,034 |  |  | 2,888 |  |  | 22,857 |  |  | 7,828 |  |  | 34,607 |
Current loans | 164,695 |  |  | 815,371 |  |  | 1,053,150 |  |  | 1,385,270 |  |  | 3,418,486 |
Total loans | $ | 165,729 |  |  | $ | 818,259 |  |  | $ | 1,076,007 |  |  | $ | 1,393,098 |  |  | $ | 3,453,093 |
Schedule of Nonaccrual Loans by Category
|  |  | Commercial |  |  |  |  |  |
June 30, 2026 | Commercial |  | Real Estate |  | Consumer |  | Residential |  | Total
Loans 90 or more days past due and still accruing interest | $ | — |  |  | $ | — |  |  | $ | 32 |  |  | $ | 1,455 |  |  | $ | 1,487 |
Nonaccrual loans | — |  |  | 3,838 |  |  | 1,263 |  |  | 1,713 |  |  | 6,814 |
Nonaccrual with no allowance for credit loss | — |  |  | — |  |  | — |  |  | 1,010 |  |  | 1,010 |
December 31, 2025 |  |  |  |  |  |  |  |  |
Loans 90 or more days past due and still accruing interest | $ | 27 |  |  | $ | — |  |  | $ | 31 |  |  | $ | 1,982 |  |  | $ | 2,040 |
Nonaccrual loans | 168 |  |  | — |  |  | 1,879 |  |  | 4,368 |  |  | 6,415 |
Nonaccrual with no allowance for credit loss | 168 |  |  | — |  |  | 1,879 |  |  | 4,368 |  |  | 6,415 |
The Company recognized $0 of interest income on nonaccrual loans during the three and six months ended June 30, 2026 or June 30, 2025 . Arrow disaggregates its loan portfolio into the following four categories: Commercial - Arrow offers a variety of loan options to meet the specific needs of our commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. In the event of default by the borrower, Arrow may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees to support the borrowing, as permitted by applicable law. Commercial Real Estate - Arrow offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are typically secured by first liens on the real estate, which may include apartments, hotels, commercial structures, housing businesses, healthcare facilities, and both owner- and non-owner-occupied facilities. Arrow also offers commercial construction and land development loans to finance projects. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also typically secured by first liens on the real estate, which may include apartments, hotels, commercial structures, housing businesses, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is elevated risk during the construction period, since the loan is secured by an incomplete project. Arrow’s commercial real estate loans are primarily located within the footprint of the Company’s branch network, with some loans extending into the greater upstate New York area. Arrow does not provide commercial real estate loans in major metropolitan areas such as New York City, Boston, etc. Consumer Loans - This category is primarily comprised of automobile loans. Arrow primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most automobile loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Automobile loans are underwritten on a secured basis using the underlying collateral being financed. Arrow also offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, Arrow also offers personal lines of credit and overdraft protection. Several of these consumer loans are unsecured, which carry a higher risk of loss. Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. Arrow originates fixed-rate and adjustable-rate one-to-four-family residential real estate loans for the construction, purchase of real estate or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in Arrow's market area. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 80% of the purchase price or appraised value (whichever is lower), or have private mortgage insurance. Arrow’s underwriting analysis for residential mortgage loans typically includes credit verification, independent appraisals, and a review of the borrower’s financial condition. Mortgage title insurance and hazard insurance are normally required. It is Arrow's general practice to underwrite residential real estate loans to secondary market standards. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. In addition, Arrow offers fixed home equity loans, as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses. Arrow originates home equity lines of credit and second mortgage loans (loans secured by a second junior lien position on one-to-four-family residential real estate). Risk is generally reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate. Allowance for Credit Losses Loan segments were selected by class code and application code to ensure each segment is comprised of loans with homogenous loan characteristics and similar risk profiles. The resulting loan segments are commercial, commercial real estate, consumer and residential real estate loans. Please see Note 2. Accounting Policies to the Consolidated Financial Statements for additional detail on our Allowance for Credit Losses. The following table details activity in the allowance for credit losses on loans for the three and six months ended June 30, 2026 and June 30, 2025:
Allowance for Credit Losses
| Commercial |  | Commercial Real Estate |  | Consumer |  | Residential |  |  |  | Total
March 31, 2026 | $ | 2,455 |  |  | $ | 14,557 |  |  | $ | 4,510 |  |  | $ | 12,533 |  |  |  |  | $ | 34,055 |
Charge-offs | (88) |  |  | — |  |  | (1,650) |  |  | (32) |  |  |  |  | (1,770) |
Recoveries | — |  |  | — |  |  | 1,071 |  |  | — |  |  |  |  | 1,071 |
Provision | 37 |  |  | 2,313 |  |  | 615 |  |  | (138) |  |  |  |  | 2,827 |
June 30, 2026 | $ | 2,404 |  |  | $ | 16,870 |  |  | $ | 4,546 |  |  | $ | 12,363 |  |  |  |  | $ | 36,183 |
December 31, 2025 | $ | 2,954 |  |  | $ | 15,260 |  |  | $ | 4,090 |  |  | $ | 12,018 |  |  |  |  | $ | 34,322 |
Charge-offs | (88) |  |  | — |  |  | (3,210) |  |  | (46) |  |  |  |  | (3,344) |
Recoveries | — |  |  | — |  |  | 1,830 |  |  | — |  |  |  |  | 1,830 |
Provision | (462) |  |  | 1,610 |  |  | 1,836 |  |  | 391 |  |  |  |  | 3,375 |
June 30, 2026 | $ | 2,404 |  |  | $ | 16,870 |  |  | $ | 4,546 |  |  | $ | 12,363 |  |  |  |  | $ | 36,183 |
March 31, 2025 | $ | 1,801 |  |  | $ | 18,236 |  |  | $ | 4,147 |  |  | $ | 13,587 |  |  |  |  | $ | 37,771 |
Charge-offs | — |  |  | (3,818) |  |  | (1,225) |  |  | (20) |  |  |  |  | (5,063) |
Recoveries | — |  |  | 75 |  |  | 814 |  |  | — |  |  |  |  | 889 |
Provision | 974 |  |  | 1,519 |  |  | 657 |  |  | (2,556) |  |  |  |  | 594 |
June 30, 2025 | $ | 2,775 |  |  | $ | 16,012 |  |  | $ | 4,393 |  |  | $ | 11,011 |  |  |  |  | $ | 34,191 |
December 31, 2024 | $ | 1,925 |  |  | $ | 14,507 |  |  | $ | 3,882 |  |  | $ | 13,284 |  |  |  |  | $ | 33,598 |
Charge-offs | — |  |  | (3,818) |  |  | (2,744) |  |  | (51) |  |  |  |  | (6,613) |
Recoveries | — |  |  | 75 |  |  | 1,518 |  |  | — |  |  |  |  | 1,593 |
Provision | 850 |  |  | 5,248 |  |  | 1,737 |  |  | (2,222) |  |  |  |  | 5,613 |
June 30, 2025 | $ | 2,775 |  |  | $ | 16,012 |  |  | $ | 4,393 |  |  | $ | 11,011 |  |  |  |  | $ | 34,191 |
Estimated Credit Losses on Off-Balance Sheet Credit Exposures Recognized in Other Liabilities As of June 30, 2026 and December 31, 2025, estimated credit losses on unfunded off-balance sheet credit exposures were $1.2 million and $1.3 million, respectively, and were included in other liabilities on the consolidated balance sheets. Collateral Dependent Loans The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2026 and December 31, 2025:
June 30, 2026 | Collateral Type -Residential Real Estate |  | Collateral Type - Commercial Real Estate |  | Total Loans
Commercial | $ | — |  |  | $ | — |  |  | $ | — |
Commercial Real Estate | — |  |  | 3,838 |  |  | 3,838 |
Consumer | — |  |  | — |  |  | — |
Residential | 1,010 |  |  | — |  |  | 1,010 |
Total | $ | 1,010 |  |  | $ | 3,838 |  |  | $ | 4,848 |
December 31, 2025 | Collateral Type -Residential Real Estate |  | Collateral Type - Commercial Real Estate |  | Total Loans
Commercial | $ | — |  |  | $ | — |  |  | $ | — |
Commercial Real Estate | — |  |  | — |  |  | — |
Consumer | — |  |  | — |  |  | — |
Residential | 3,172 |  |  | — |  |  | 3,172 |
Total | $ | 3,172 |  |  | $ | — |  |  | $ | 3,172 |
Through the provision for credit losses, an allowance for credit losses is maintained that reflects the best estimate of the calculated expected credit losses in Arrow's loan portfolio as of the balance sheet date. Additions are made to the allowance for credit losses through a periodic provision for credit losses. Actual credit losses are charged against the allowance for credit losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for credit losses. Arrow's loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with certain criticized and classified commercial-related relationships. In addition, the independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in the commercial loan portfolio. Arrow considers the need to qualitatively adjust expected credit loss estimates for information not already captured in the loss estimation process. These qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Adjustments are not made for information that has already been considered and included in the loss estimation process. Please see Note 2. Accounting Policies to the Consolidated Financial Statements for the qualitative factors that are relevant as of the reporting date. Loan Credit Quality Indicators and Modifications Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. In some cases, the Company provides multiple types of concession on one loan. Typically, one type of concession, such as a term extension, is granted initially. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. The Company did not modify loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026. The following table presents the amortized cost basis of loans at June 30, 2025 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2025, by class and by type of modification.
June 30, 2025
| Principal Forgiveness |  | Payment Delay |  | Term Extension |  | Interest Rate Reduction |  | Combination Term Extension and Principal Forgiveness |  | Combination Term Extension and Interest Rate Reduction |  | Total Class of Financing Receivable
Commercial | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — | %
Commercial Real Estate | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Residential | — |  |  | 705 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.05 | %
Total | $ | — |  |  | $ | 705 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 0.02 | %
The following table presents the performance of loans that have been modified for borrowers experiencing financial difficulty in the last 12 months.
June 30, 2026
| Current |  | Loans Past Due 30-59 Days |  | Loans Past Due 60-89 Days |  | Loans Past Due 90 or more Days |  | Total Loans Past Due
Commercial | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial Real Estate | — |  |  | — |  |  | — |  |  | — |  |  | — |
Consumer | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential | 346 |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 346 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
There were no defaults during the three and six months ended June 30, 2026. The following tables present credit quality indicators by total loans amortized cost basis by origination year as of June 30, 2026 and December 31, 2025:
| Term Loans Amortized Cost Basis by Origination Year | Revolving Loans Amortized Cost Basis | Revolving Loan Converted to Term | Total
June 30, 2026 | 2026 | 2025 | 2024 | 2023 | 2022 | Prior
Commercial: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Satisfactory | $ | 26,271 |  | $ | 36,467 |  | $ | 37,354 |  | $ | 17,115 |  | $ | 13,571 |  | $ | 23,812 |  | $ | 13,624 |  | $ | — |  | $ | 168,214 |
Special mention | 213 |  | — |  | — |  | 25 |  | — |  | — |  | — |  | — |  | 238 |
Substandard | — |  | — |  | — |  | 264 |  | 900 |  | 2,826 |  | 615 |  | — |  | 4,605 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total Commercial Loans | $ | 26,484 |  | $ | 36,467 |  | $ | 37,354 |  | $ | 17,404 |  | $ | 14,471 |  | $ | 26,638 |  | $ | 14,239 |  | $ | — |  | $ | 173,057 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | 88 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 88 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Satisfactory | $ | 39,200 |  | $ | 96,333 |  | $ | 114,737 |  | $ | 78,792 |  | $ | 138,707 |  | $ | 347,980 |  | $ | 1,119 |  | $ | — |  | $ | 816,868 |
Special mention | — |  | — |  | 4,535 |  | — |  | 653 |  | 1,079 |  | 340 |  | — |  | 6,607 |
Substandard | — |  | 2,527 |  | — |  | 641 |  | 2,955 |  | 4,919 |  | 2,944 |  | — |  | 13,986 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total Commercial Real Estate Loans | $ | 39,200 |  | $ | 98,860 |  | $ | 119,272 |  | $ | 79,433 |  | $ | 142,315 |  | $ | 353,978 |  | $ | 4,403 |  | $ | — |  | $ | 837,461 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Consumer: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Performing | $ | 237,161 |  | $ | 320,514 |  | $ | 225,058 |  | $ | 148,025 |  | $ | 102,216 |  | $ | 48,466 |  | $ | 434 |  | $ | — |  | $ | 1,081,874 |
Nonperforming | 55 |  | 251 |  | 347 |  | 283 |  | 183 |  | 176 |  | — |  | — |  | 1,295 |
Total Consumer Loans | $ | 237,216 |  | $ | 320,765 |  | $ | 225,405 |  | $ | 148,308 |  | $ | 102,399 |  | $ | 48,642 |  | $ | 434 |  | $ | — |  | $ | 1,083,169 |
Current-period gross charge-offs | $ | 12 |  | $ | 547 |  | $ | 1,021 |  | $ | 563 |  | $ | 571 |  | $ | 496 |  | $ | — |  | $ | — |  | $ | 3,210 |
Residential: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Performing | $ | 60,058 |  | $ | 151,585 |  | $ | 158,734 |  | $ | 152,039 |  | $ | 197,510 |  | $ | 540,982 |  | $ | 138,778 |  | $ | — |  | $ | 1,399,686 |
Nonperforming | — |  | 150 |  | 323 |  | 284 |  | — |  | 2,054 |  | 357 |  | — |  | 3,168 |
Total Residential Loans | $ | 60,058 |  | $ | 151,735 |  | $ | 159,057 |  | $ | 152,323 |  | $ | 197,510 |  | $ | 543,036 |  | $ | 139,135 |  | $ | — |  | $ | 1,402,854 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 46 |  | $ | — |  | $ | — |  | $ | 46 |
Total Loans | $ | 362,958 |  | $ | 607,827 |  | $ | 541,088 |  | $ | 397,468 |  | $ | 456,695 |  | $ | 972,294 |  | $ | 158,211 |  | $ | — |  | $ | 3,496,541 |
Total current-period gross charge-offs | $ | 12 |  | $ | 547 |  | $ | 1,109 |  | $ | 563 |  | $ | 571 |  | $ | 542 |  | $ | — |  | $ | — |  | $ | 3,344 |
| Term Loans Amortized Cost Basis by Origination Year | Revolving Loans Amortized Cost Basis | Revolving Loan Converted to Term | Total
December 31, 2025 | 2025 | 2024 | 2023 | 2022 | 2021 | Prior
Commercial: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Satisfactory | $ | 40,855 |  | $ | 41,908 |  | $ | 20,671 |  | $ | 15,915 |  | $ | 12,070 |  | $ | 19,917 |  | $ | 9,765 |  | $ | — |  | $ | 161,101 |
Special mention | 196 |  | — |  | 25 |  | — |  | — |  | — |  | — |  | — |  | 221 |
Substandard | — |  | — |  | 410 |  | 92 |  | — |  | 2,896 |  | 1,009 |  | — |  | 4,407 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total Commercial Loans | $ | 41,051 |  | $ | 41,908 |  | $ | 21,106 |  | $ | 16,007 |  | $ | 12,070 |  | $ | 22,813 |  | $ | 10,774 |  | $ | — |  | $ | 165,729 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Satisfactory | $ | 90,358 |  | $ | 113,616 |  | $ | 78,723 |  | $ | 128,103 |  | $ | 96,305 |  | $ | 264,374 |  | $ | 2,112 |  | $ | — |  | $ | 773,591 |
Special mention | 302 |  | 6,348 |  | 275 |  | 7,504 |  | 4,749 |  | 3,808 |  | 473 |  | — |  | 23,459 |
Substandard | 2,127 |  | — |  | 341 |  | 4,104 |  | 304 |  | 14,069 |  | 264 |  | — |  | 21,209 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total Commercial Real Estate Loans | $ | 92,787 |  | $ | 119,964 |  | $ | 79,339 |  | $ | 139,711 |  | $ | 101,358 |  | $ | 282,251 |  | $ | 2,849 |  | $ | — |  | $ | 818,259 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,656 |  | $ | 2,162 |  | $ | — |  | $ | — |  | $ | 3,818 |
Consumer: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Performing | $ | 370,436 |  | $ | 281,349 |  | $ | 194,467 |  | $ | 144,210 |  | $ | 62,395 |  | $ | 20,796 |  | $ | 444 |  | $ | — |  | $ | 1,074,097 |
Nonperforming | 121 |  | 502 |  | 363 |  | 421 |  | 375 |  | 128 |  | — |  | — |  | 1,910 |
Total Consumer Loans | $ | 370,557 |  | $ | 281,851 |  | $ | 194,830 |  | $ | 144,631 |  | $ | 62,770 |  | $ | 20,924 |  | $ | 444 |  | $ | — |  | $ | 1,076,007 |
Current-period gross charge-offs | $ | 291 |  | $ | 1,472 |  | $ | 1,380 |  | $ | 1,367 |  | $ | 904 |  | $ | 271 |  | $ | — |  | $ | — |  | $ | 5,685 |
Residential: |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |
Performing | $ | 144,618 |  | $ | 172,965 |  | $ | 160,802 |  | $ | 206,858 |  | $ | 170,889 |  | $ | 395,132 |  | $ | 135,483 |  | $ | — |  | $ | 1,386,747 |
Nonperforming | 204 |  | 1,041 |  | 337 |  | 1,966 |  | 342 |  | 2,291 |  | 170 |  | — |  | 6,351 |
Total Residential Loans | $ | 144,822 |  | $ | 174,006 |  | $ | 161,139 |  | $ | 208,824 |  | $ | 171,231 |  | $ | 397,423 |  | $ | 135,653 |  | $ | — |  | $ | 1,393,098 |
Current-period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | 20 |  | $ | — |  | $ | 31 |  | $ | — |  | $ | — |  | $ | 51 |
Total Loans | $ | 649,217 |  | $ | 617,729 |  | $ | 456,414 |  | $ | 509,173 |  | $ | 347,429 |  | $ | 723,411 |  | $ | 149,720 |  | $ | — |  | $ | 3,453,093 |
Total current-period gross charge-offs | $ | 291 |  | $ | 1,472 |  | $ | 1,380 |  | $ | 1,387 |  | $ | 2,560 |  | $ | 2,464 |  | $ | — |  | $ | — |  | $ | 9,554 |
For the purposes of the tables above, nonperforming consumer and residential loans were those loans on nonaccrual status or were 90 days or more past due and still accruing interest. As of June 30, 2026 and December 31, 2025, the amortized cost of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $569 thousand and $795 thousand, respectively. For the allowance calculation, an internally developed system of five credit quality indicators is used to rate the credit worthiness of each commercial loan defined as follows: 1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt. Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified; 2) Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Loans which might be assigned this credit quality indicator include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions; 3) Substandard - Loans classified as “substandard” are inadequately protected by the current net worth or paying capacity of the borrower or the collateral pledged, if any. Loans in this category have well defined weaknesses that jeopardize the repayment. They are characterized by the distinct possibility that Arrow will sustain some loss if the deficiencies are not corrected. “Substandard” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard; 4) Doubtful - Loans classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. Although possibility of loss is extremely high, classification of these loans as “loss” has been deferred due to specific pending factors or events which may strengthen the value (e.g. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc.). Loans classified as “doubtful” need to be placed on nonaccrual; and 5) Loss - Loans classified as “loss” are considered uncollectible with collateral of such little value that their continuance as bankable assets is not warranted. As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for loan losses. Commercial loans are generally evaluated on an annual basis depending on the size and complexity of the loan relationship, unless the credit related quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly. The credit quality indicator is one of the factors used in assessing the level of incurred risk of loss in our commercial related loan portfolios.

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