Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-12507 | |
Entity Registrant Name | ARROW FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 22-2448962 | |
Entity Address, Address Line One | 250 Glen Street | |
Entity Address, City or Town | Glens Falls | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 12801 | |
City Area Code | 518 | |
Local Phone Number | 745-1000 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 per share | |
Trading Symbol | AROW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,528,659 | |
Entity Central Index Key | 0000717538 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
ASSETS | |||
Cash and Due From Banks | $ 44,872 | $ 26,978 | $ 49,430 |
Interest-Bearing Deposits at Banks | 328,557 | 430,718 | 548,936 |
Investment Securities: | |||
Available-for-Sale at Fair Value | 575,054 | 559,316 | 486,900 |
Held-to-Maturity (Fair Value of $175,800 at September 30, 2022; $201,292 at December 31, 2021; and $203,936 at September 30, 2021) | 182,178 | 196,566 | 198,337 |
Equity Securities | 2,126 | 1,747 | 1,886 |
FHLB and Federal Reserve Bank Stock | 4,720 | 5,380 | 5,380 |
Loans | 2,924,794 | 2,667,941 | 2,654,751 |
Allowance for Credit Losses | (29,232) | (27,281) | (26,956) |
Net Loans | 2,895,562 | 2,640,660 | 2,627,795 |
Premises and Equipment, Net | 54,015 | 46,217 | 44,003 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 1,604 | 1,918 | 2,006 |
Other Assets | 122,217 | 96,579 | 84,558 |
Total Assets | 4,232,778 | 4,027,952 | 4,071,104 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 910,221 | 810,274 | 841,910 |
Interest-Bearing Checking Accounts | 1,113,850 | 994,391 | 1,035,358 |
Savings Deposits | 1,584,373 | 1,531,287 | 1,515,692 |
Time Deposits over $250,000 | 59,059 | 82,811 | 73,889 |
Other Time Deposits | 127,602 | 131,734 | 138,714 |
Total Deposits | 3,795,105 | 3,550,497 | 3,605,563 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | 0 | 2,426 |
Federal Home Loan Bank Term Advances | 25,000 | 45,000 | 45,000 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 |
Finance Leases | 5,131 | 5,169 | 5,181 |
Other Liabilities | 41,992 | 36,100 | 32,763 |
Total Liabilities | 3,887,228 | 3,656,766 | 3,710,933 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at September 30, 2022, December 31, 2021 and September 30, 2021 | 0 | 0 | 0 |
Common Stock, $1 Par Value; 30,000,000 Shares Authorized (21,423,992 Shares Issued at September 30, 2022 and 20,800,144 at December 31, 2021 and September 30, 2021) | 21,424 | 20,800 | 20,800 |
Additional Paid-in Capital | 399,461 | 377,996 | 377,349 |
Retained Earnings | 57,778 | 54,078 | 47,936 |
Accumulated Other Comprehensive (Loss) Income | (49,070) | 347 | (3,719) |
Treasury Stock, at Cost (4,900,975 Shares at September 30, 2022; 4,759,414 Shares at December 31, 2021 and 4,780,496 Shares at September 30, 2021) | (84,043) | (82,035) | (82,195) |
Total Stockholders’ Equity | 345,550 | 371,186 | 360,171 |
Total Liabilities and Stockholders’ Equity | $ 4,232,778 | $ 4,027,952 | $ 4,071,104 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Investments, Debt and Equity Securities [Abstract] | |||
Held-to-maturity securities, at fair value | $ 175,800 | $ 201,292 | $ 203,936 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common Stock, shares issued (in shares) | 21,423,992 | 21,423,992 | 20,800,144 |
Treasury Stock (in shares) | 4,900,975 | 4,759,414 | 4,780,496 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
INTEREST AND DIVIDEND INCOME | |||||
Interest and Fees on Loans | $ 29,618 | $ 27,157 | $ 82,263 | $ 79,354 | |
Interest on Deposits at Banks | 1,201 | 163 | 1,826 | 351 | |
Interest and Dividends on Investment Securities: | |||||
Fully Taxable | 2,603 | 1,632 | 7,236 | 4,809 | |
Exempt from Federal Taxes | 785 | 855 | 2,422 | 2,682 | |
Total Interest and Dividend Income | 34,207 | 29,807 | 93,747 | 87,196 | |
INTEREST EXPENSE | |||||
Interest-Bearing Checking Accounts | 267 | 155 | 629 | 566 | |
Savings Deposits | 2,469 | 424 | 3,778 | 1,490 | |
Time Deposits over $250,000 | 89 | 39 | 143 | 228 | |
Other Time Deposits | 150 | 133 | 370 | 511 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | 0 | 0 | 3 | |
Federal Home Loan Bank Advances | 110 | 197 | 405 | 586 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 173 | 173 | 513 | 513 | |
Interest on Financing Leases | 48 | 48 | 145 | 146 | |
Total Interest Expense | 3,306 | 1,169 | 5,983 | 4,043 | |
NET INTEREST INCOME | 30,901 | 28,638 | 87,764 | 83,153 | |
Provision for Credit Losses | 1,715 | 99 | 3,389 | (286) | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 29,186 | 28,539 | 84,375 | 83,439 | |
NONINTEREST INCOME | |||||
Insurance Commissions | 1,650 | 1,576 | 4,783 | 4,842 | |
Net Gain (Loss) on Securities | 95 | (106) | 379 | 250 | |
Net Gain on Sales of Loans | 18 | 211 | 80 | 2,251 | |
Other Operating Income | 652 | 476 | 2,121 | 1,405 | |
Total Noninterest Income | 7,827 | 7,694 | 23,733 | 24,780 | |
NONINTEREST EXPENSE | |||||
Salaries and Employee Benefits | 12,427 | 11,377 | 35,400 | 33,360 | |
Occupancy Expenses, Net | 1,521 | 1,403 | 4,721 | 4,480 | |
Technology and Equipment Expense | 4,049 | 3,833 | 11,802 | 11,002 | |
FDIC Assessments | 295 | 249 | 893 | 764 | |
Other Operating Expense | 3,156 | 2,561 | 7,922 | 7,582 | |
Total Noninterest Expense | 21,448 | 19,423 | 60,738 | 57,188 | |
INCOME BEFORE PROVISION FOR INCOME TAXES | 15,565 | 16,810 | 47,370 | 51,031 | |
Provision for Income Taxes | 3,402 | 3,821 | 10,658 | 11,483 | |
NET INCOME | $ 12,163 | $ 12,989 | $ 36,712 | $ 39,548 | |
Average Shares Outstanding: | |||||
Basic (in shares) | [1] | 16,512 | 16,508 | 16,506 | 16,495 |
Diluted (in shares) | [1] | 16,558 | 16,568 | 16,553 | 16,554 |
Per Common Share: | |||||
Basic Earnings (in dollars per share) | $ 0.74 | $ 0.79 | $ 2.22 | $ 2.40 | |
Diluted Earnings (in dollars per share) | $ 0.74 | $ 0.78 | $ 2.22 | $ 2.39 | |
Income From Fiduciary Activities | |||||
NONINTEREST INCOME | |||||
Revenue from contract with customer | $ 2,341 | $ 2,571 | $ 7,454 | $ 7,538 | |
Fees for Other Services to Customers | |||||
NONINTEREST INCOME | |||||
Revenue from contract with customer | $ 3,071 | $ 2,966 | $ 8,916 | $ 8,494 | |
[1]Share and Per Share Amounts have been restated for the September 23, 2022 3% stock dividend. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) | Sep. 30, 2022 | Sep. 23, 2022 | Sep. 30, 2021 |
Income Statement [Abstract] | |||
Stock dividend, percent | 300% | 3% | 300% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 12,163 | $ 12,989 | $ 36,712 | $ 39,548 |
Other Comprehensive (Loss) Income, Net of Tax: | ||||
Net Unrealized Securities Holding Loss Arising During the Period | (20,801) | (1,279) | (52,808) | (3,969) |
Net Unrealized Gain on Cash Flow Hedge Agreements | 778 | 183 | 2,781 | 954 |
Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense | 55 | (25) | 42 | (68) |
Amortization of Net Retirement Plan Actuarial Loss | 420 | 17 | 441 | 51 |
Amortization of Net Retirement Plan Prior Service Cost | 42 | 43 | 127 | 129 |
Other Comprehensive Loss | (19,506) | (1,061) | (49,417) | (2,903) |
Comprehensive (Loss) Income | $ (7,343) | $ 11,928 | $ (12,705) | $ 36,645 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance | |
Stockholders' equity, beginning balance at Dec. 31, 2020 | $ 334,392 | $ 120 | $ 334,512 | $ 20,194 | $ 20,194 | $ 353,662 | $ 353,662 | $ 41,899 | $ 120 | $ 42,019 | $ (816) | $ (816) | $ (80,547) | $ (80,547) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net Income | 39,548 | 39,548 | |||||||||||||
Other Comprehensive Income (Loss) | (2,903) | (2,903) | |||||||||||||
Stock Dividend | 0 | 606 | 20,896 | (21,502) | |||||||||||
Cash Dividends Paid | [1] | (12,129) | (12,129) | ||||||||||||
Stock Options Exercised, Net | 1,453 | 983 | 470 | ||||||||||||
Shares Issued Under the Directors' Stock Plan | 284 | 208 | 76 | ||||||||||||
Shares Issued Under the Employee Stock Purchase Plan | 363 | 262 | 101 | ||||||||||||
Shares Issued for Dividend Reinvestment Plans | 1,366 | 1,028 | 338 | ||||||||||||
Stock-Based Compensation Expense | 310 | 310 | |||||||||||||
Purchases of Treasury Stock | (2,633) | (2,633) | |||||||||||||
Stockholders' equity, ending balance at Sep. 30, 2021 | 360,171 | 20,800 | 377,349 | 47,936 | (3,719) | (82,195) | |||||||||
Stockholders' equity, beginning balance at Jun. 30, 2021 | 353,033 | 20,194 | 355,195 | 60,494 | (2,658) | (80,192) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net Income | 12,989 | ||||||||||||||
Other Comprehensive Income (Loss) | (1,061) | (1,061) | |||||||||||||
Stock Dividend | 0 | 606 | 20,896 | (21,502) | |||||||||||
Cash Dividends Paid | [1] | (4,045) | (4,045) | ||||||||||||
Stock Options Exercised, Net | 928 | 657 | 271 | ||||||||||||
Shares Issued Under the Directors' Stock Plan | 95 | 71 | 24 | ||||||||||||
Shares Issued Under the Employee Stock Purchase Plan | 117 | 87 | 30 | ||||||||||||
Shares Issued for Dividend Reinvestment Plans | 455 | 340 | 115 | ||||||||||||
Stock-Based Compensation Expense | 103 | 103 | |||||||||||||
Purchases of Treasury Stock | (2,443) | (2,443) | |||||||||||||
Stockholders' equity, ending balance at Sep. 30, 2021 | 360,171 | 20,800 | 377,349 | 47,936 | (3,719) | (82,195) | |||||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | 371,186 | 20,800 | 377,996 | 54,078 | 347 | (82,035) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net Income | 36,712 | 36,712 | |||||||||||||
Other Comprehensive Income (Loss) | (49,417) | (49,417) | |||||||||||||
Stock Dividend | 0 | 624 | 19,408 | (20,032) | |||||||||||
Cash Dividends Paid | [1] | (12,980) | (12,980) | ||||||||||||
Stock Options Exercised, Net | 366 | 215 | 151 | ||||||||||||
Shares Issued Under the Directors' Stock Plan | 285 | 210 | 75 | ||||||||||||
Shares Issued Under the Employee Stock Purchase Plan | 361 | 261 | 100 | ||||||||||||
Shares Issued for Dividend Reinvestment Plans | 1,420 | 1,033 | 387 | ||||||||||||
Stock-Based Compensation Expense | 338 | 338 | |||||||||||||
Purchases of Treasury Stock | (2,721) | (2,721) | |||||||||||||
Stockholders' equity, ending balance at Sep. 30, 2022 | 345,550 | 21,424 | 399,461 | 57,778 | (49,070) | (84,043) | |||||||||
Stockholders' equity, beginning balance at Jun. 30, 2022 | 356,498 | 20,800 | 379,423 | 69,980 | (29,564) | (84,141) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net Income | 12,163 | 12,163 | |||||||||||||
Other Comprehensive Income (Loss) | (19,506) | (19,506) | |||||||||||||
Stock Dividend | 0 | 624 | 19,408 | (20,032) | |||||||||||
Cash Dividends Paid | [1] | (4,333) | (4,333) | ||||||||||||
Stock Options Exercised, Net | 40 | 27 | 13 | ||||||||||||
Shares Issued Under the Directors' Stock Plan | 92 | 67 | 25 | ||||||||||||
Shares Issued Under the Employee Stock Purchase Plan | 119 | 85 | 34 | ||||||||||||
Shares Issued for Dividend Reinvestment Plans | 471 | 337 | 134 | ||||||||||||
Stock-Based Compensation Expense | 114 | 114 | |||||||||||||
Purchases of Treasury Stock | (108) | (108) | |||||||||||||
Stockholders' equity, ending balance at Sep. 30, 2022 | $ 345,550 | $ 21,424 | $ 399,461 | $ 57,778 | $ (49,070) | $ (84,043) | |||||||||
[1]Cash dividends paid per share have been adjusted for the September 23, 2022 3% stock dividend. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Stock dividend, percent | 300% | 300% | 300% | 300% |
Stock dividends (in shares) | 623,848 | 605,670 | 623,848 | 605,670 |
Cash Dividends Paid, per Share (in dollars per share) | $ 0.262 | $ 0.245 | $ 0.786 | $ 0.735 |
Stock Options Exercised (in shares) | 1,406 | 30,346 | 17,284 | 52,610 |
Shares Issued Under the Directors' Stock Plan (in shares) | 2,923 | 2,627 | 8,693 | 8,471 |
Shares Issued Under Employee Stock Purchase Plan (in shares) | 3,855 | 3,387 | 11,416 | 11,304 |
Shares Issued for Dividend Reinvestment Plans (in shares) | 14,521 | 12,826 | 43,673 | 37,841 |
Purchase of Treasury Stock (in shares) | 3,329 | 67,649 | 79,881 | 72,750 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 36,712 | $ 39,548 |
Provision for Credit Losses | 3,389 | (286) |
Depreciation and Amortization | 5,845 | 5,894 |
Net Gain on Securities Transactions | (379) | (250) |
Loans Originated and Held-for-Sale | (626) | (45,930) |
Proceeds from the Sale of Loans Held-for-Sale | 1,377 | 57,097 |
Net Gain on the Sale of Loans | (80) | (2,251) |
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 136 | 68 |
Contributions to Retirement Benefit Plans | (478) | (441) |
Deferred Income Tax Benefit | (670) | (35) |
Shares Issued Under the Directors’ Stock Plan | 285 | 284 |
Stock-Based Compensation Expense | 338 | 310 |
Tax Benefit from Exercise of Stock Options | 22 | 69 |
Net Increase in Other Assets | (1,076) | (92) |
Net Increase in Other Liabilities | 3,415 | 1,727 |
Net Cash Provided By Operating Activities | 48,210 | 55,712 |
Cash Flows from Investing Activities: | ||
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 61,620 | 93,332 |
Purchases of Securities Available-for-Sale | (149,674) | (222,089) |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 24,231 | 24,266 |
Purchases of Securities Held-to-Maturity | (10,293) | (4,695) |
Net Increase in Loans | (260,179) | (70,393) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 1,055 | 1,054 |
Purchase of Premises and Equipment | (10,913) | (3,942) |
Net Decrease (Increase) in FHLB and Federal Reserve Bank Stock | 660 | (31) |
Net Cash Used By Investing Activities | (343,493) | (182,498) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 244,608 | 370,837 |
Net Decrease in Short-Term Borrowings | 0 | (15,060) |
Finance Lease Payments | (38) | (36) |
Repayments of Federal Home Loan Bank Term Advances | (20,000) | 0 |
Purchase of Treasury Stock | (2,721) | (2,633) |
Stock Options Exercised, Net | 366 | 1,453 |
Shares Issued Under the Employee Stock Purchase Plan | 361 | 363 |
Shares Issued for Dividend Reinvestment Plans | 1,420 | 1,366 |
Cash Dividends Paid | (12,980) | (12,129) |
Net Cash Provided By Financing Activities | 211,016 | 344,161 |
Net (Decrease) Increase in Cash and Cash Equivalents | (84,267) | 217,375 |
Cash and Cash Equivalents at Beginning of Period | 457,696 | 380,991 |
Cash and Cash Equivalents at End of Period | 373,429 | 598,366 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 5,911 | 4,224 |
Income Taxes | 8,918 | 11,060 |
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 1,217 | $ 1,066 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES In the opinion of the management of Arrow Financial Corporation (Arrow, the Company, we, or us), the accompanying unaudited interim consolidated financial statements contain all of the adjustments necessary to present fairly the financial position as of September 30, 2022, December 31, 2021 and September 30, 2021; the results of operations for the nine month periods ended September 30, 2022 and 2021; the consolidated statements of comprehensive income for the nine month periods ended September 30, 2022 and 2021; the changes in stockholders' equity for the nine month periods ended September 30, 2022 and 2021; and the cash flows for the nine month periods ended September 30, 2022 and 2021. All such adjustments are of a normal recurring nature. The unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements of Arrow for the year ended December 31, 2021 included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2021. Management’s Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Management utilized estimates and assumptions in its evaluation of potential impairment of Arrow's right-of-use lease assets, goodwill and intangible assets. Our most significant estimate is the allowance for credit losses. Other estimates include the fair value of financial statements, evaluation of pension and other post-retirement liabilities, an analysis of a need for a valuation allowance for deferred tax assets and a reserve for unfunded loan commitments recorded as an other liability. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term is the allowance for credit losses. In connection with the determination of the allowance for credit losses management obtains economic forecasts from reliable sources and appraisals for properties. The allowance for credit losses is management’s best estimate of the life of loan losses as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for credit losses may be necessary based on changes in economic conditions. Allowance for Credit Losses – Loans - Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). It replaces the incurred loss approach’s threshold that required the recognition of a credit loss when it was probable that a loss event was incurred. The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Credit losses are charged off against the allowance when management believes a loan balance is confirmed to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Management estimates the allowance using relevant available information from internal and external sources related to past events, current conditions, and a reasonable and supportable single economic forecast. Historical credit loss experience provides the basis for the estimation of expected credit losses. Arrow's historical loss experience was supplemented with peer information when there was insufficient loss data for Arrow. Peer selection was based on a review of institutions with comparable loss experience as well as loan yield, bank size, portfolio concentration and geography. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in credit concentrations, delinquency level, collateral values and underwriting standards as well as changes in economic conditions or other relevant factors. Management judgment is required at each point in the measurement process. Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Upon adoption of CECL, management revised the manner in which loans were pooled for similar risk characteristics. Management developed portfolio segments for estimating loss based on type of borrower and collateral as follows: Commercial Loans Commercial Real Estate Loans Consumer Loans Residential Loans Further details related to loan portfolio segments is included in Note 4 Loans. Historical credit loss experience for both Arrow and segment-specific peers provides the basis for the estimation of expected credit losses. Arrow utilized regression analyses of peer data, of which Arrow is included, where observed credit losses and selected economic factors were utilized to determine suitable loss drivers for modeling lifetime probability of default (PD) rates. Arrow uses the discounted cash flow (DCF) method to estimate expected credit losses for the commercial, commercial real estate, and residential segments. For each of these loan segments, Arrow generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, PD, and segment-specific loss given default (LGD) risk factors. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data and adjusted, if necessary, based on the reasonable and supportable forecast of economic conditions. For the loan segments utilizing the DCF method, (commercial, commercial real estate, and residential) management utilizes externally developed economic forecast of the following economic factors as loss drivers: national unemployment, gross domestic product and home price index (HPI). The economic forecast is applied over a reasonable and supportable forecast period. Arrow utilizes a six quarter reasonable and supportable forecast period with an eight quarter reversion to the historic mean on a straight-line basis. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (NPV). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring (TDR) will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by Arrow. Arrow uses the vintage analysis method to estimate expected credit losses for the consumer loan segment. The vintage method was selected since the loans within the consumer loan segment are homogeneous, not just by risk characteristic, but by loan structure. Under the vintage analysis method, a loss rate is calculated based on the quarterly net charge-offs to the outstanding loan balance for each vintage year over the lookback period. Once this periodic loss rate is calculated for each quarter in the lookback period, the periodic rates are averaged into the loss rate. The loss rate is then applied to the outstanding loan balances based on the loan's vintage year. Arrow maintains, over the life of the loan, the loss curve by vintage year. If estimated losses computed by the vintage method need to be adjusted based on current conditions and the reasonable and supportable economic forecast, these adjustments would be incorporated over a six quarter reasonable and supportable forecast period, reverting to historical losses using a straight-line method over an eight quarter period. Based on current conditions and the reasonable and supportable economic forecast, no adjustment to the loss rate for each vintage is currently required. The vintage and DCF models also consider the need to qualitatively adjust expected loss estimates for information not already captured in the quantitative loss estimation process. Qualitative considerations include limitations inherent in the quantitative model; trends experienced in nonperforming and delinquent loans; changes in value of underlying collateral; changes in lending policies and procedures; nature and composition of loans; portfolio concentrations that may affect loss experience across one or more components or the portfolio; the experience, ability and depth of lending management and staff; Arrow's credit review system; and the effect of external factors such as competition, legal and regulatory requirements. These qualitative factor adjustments may increase or decrease Arrow's estimate of expected credit losses so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date. All loans not included in the vintage analysis method that exceed $250,000 which are on nonaccrual, are evaluated on an individual basis. For collateral dependent financial assets where Arrow has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and Arrow expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, Arrow has elected a practical expedient to measure the allowance for credit loss as the difference between the fair value of the collateral less cost to sell, and the amortized cost basis of the asset as of the measurement date. In the event where the repayment of a collateral dependent financial asset is expected to be provided substantially through the operating of the collateral, Arrow will use fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the allowance for credit losses. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Except as set forth below, a loan that has been modified or renewed is considered a TDR when two conditions are met: • The borrower is experiencing financial difficulty, and • Concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. Arrow's allowance for credit losses reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. Arrow has determined that a TDR is reasonably expected no later than the point it is determined that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession to avoid a default. Reasonably expected TDRs and executed non-performing TDRs are evaluated individually to determine the required allowance for credit losses. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in Arrow's existing pools based on the underlying risk characteristics of the loan to measure the allowance for credit losses. Estimated Credit Losses on Off-Balance Sheet Credit Exposures Recognized as Other Liabilities - Arrow estimates expected credit losses over the contractual period in which Arrow has exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Arrow. The allowance for credit losses on off-balance sheet credit exposures recognized in other liabilities, is adjusted as an expense in other noninterest expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. Estimating credit losses on unfunded commitments requires the Bank to consider the following categories of off-balance sheet credit exposure: unfunded commitments to extend credit, unfunded lines of credit, and standby letters of credit. Each of these unfunded commitments is then analyzed for a probability of funding to calculate a probable funding amount. The life of loan loss factor by related portfolio segment from the loan allowance for credit loss calculation is then applied to the probable funding amount to calculate the estimated credit losses on off-balance sheet credit exposures recognized as other liabilities. Accrued Interest Receivable - Upon adoption of CECL on January 1, 2021, Arrow made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within the other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued its policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due and therefore the amount of such write offs are immaterial. Historically, Arrow has not experienced uncollectible accrued interest receivable on investment securities. Allowance for Credit Losses – Held-to-Maturity (HTM) Debt Securities - Arrow's HTM debt securities are also required to utilize the CECL approach to estimate expected credit losses. Management measures expected credit losses on HTM debt securities on a collective basis by major security types that share similar risk characteristics, such as financial asset type and collateral type adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: U.S. government agency or U.S. government sponsored mortgage-backed and collateralized mortgage obligations securities, and state and municipal debt securities. The mortgage-backed and collateralized mortgage obligations HTM securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. Therefore, Arrow did not record a credit loss for these securities. State and municipal bonds carry an investment grade from an accredited ratings agency, primarily with an investment grade rating. In addition, Arrow has a limited amount of New York state local municipal bonds that are not rated. The estimate of expected credit losses on the HTM portfolio is based on the expected cash flows of each individual CUSIP over its contractual life and utilized a municipal loss forecast model for determining PD and LGD rates. Management may exercise discretion to make adjustments based on environmental factors. A calculated expected credit loss for individual securities was determined using the PD and LGD rates. Arrow determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded. Allowance for Credit Losses – Available-for-Sale (AFS) Debt Securities - The impairment model for AFS debt securities differs from the CECL approach utilized by HTM debt securities since AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows are estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Investments in Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock are required for membership in those organizations and are carried at cost since there is no market value available. The FHLB New York continues to pay dividends and repurchase stock. As such, the Company has not recognized any impairment on its holdings of Federal Reserve Bank and FHLB stock. There were no additional accounting standards adopted in the first nine months of 2022. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS (In Thousands) The following table is the schedule of Cash and Cash Equivalents at September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 December 31, 2021 September 30, 2021 Cash and Due From Banks $ 44,872 $ 26,978 $ 49,430 Interest-Bearing Deposits at Banks 328,557 430,718 548,936 Total Cash and Cash Equivalents $ 373,429 457,696 598,366 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) The following table is the schedule of Available-For-Sale Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total September 30, 2022 Available-For-Sale Securities, $ 180,000 $ 340 $ 465,485 $ 1,000 $ 646,825 Gross Unrealized Gains — — 3 — 3 Gross Unrealized Losses (16,035) — (55,539) (200) (71,774) Available-For-Sale Securities, 163,965 340 409,949 800 575,054 Available-For-Sale Securities, 414,929 Maturities of Debt Securities, Within One Year $ 5,000 $ 20 $ 817 $ — $ 5,837 From 1 - 5 Years 175,000 — 254,104 — 429,104 From 5 - 10 Years — 320 210,564 1,000 211,884 Over 10 Years — — — — — Maturities of Debt Securities, Within One Year $ 5,000 $ 20 $ 795 $ — $ 5,815 From 1 - 5 Years 158,965 — 232,760 — 391,725 From 5 - 10 Years — 320 176,394 800 177,514 Over 10 Years — — — — — Securities in a Continuous Less than 12 Months $ 71,419 $ — $ 274,491 $ — $ 345,910 12 Months or Longer 92,545 — 135,329 800 228,674 Total $ 163,964 $ — $ 409,820 $ 800 $ 574,584 Number of Securities in a 24 — 156 1 181 Unrealized Losses on Less than 12 Months $ 3,581 $ — $ 30,521 $ — $ 34,102 12 Months or Longer 12,454 — 25,018 200 37,672 Total $ 16,035 $ — $ 55,539 $ 200 $ 71,774 Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total Disaggregated Details: US Treasury Obligations, $ — US Treasury Obligations, — US Agency Obligations, $ 180,000 US Agency Obligations, 163,965 US Government Agency $ 8,243 US Government Agency 7,842 Government Sponsored Entity 457,242 Government Sponsored Entity 402,107 December 31, 2021 Available-For-Sale Securities, $ 110,000 $ 400 $ 448,742 $ 1,000 $ 560,142 Gross Unrealized Gains 63 — 3,617 — 3,680 Gross Unrealized Losses (1,698) — (2,608) (200) (4,506) Available-For-Sale Securities, 108,365 400 449,751 800 559,316 Available-For-Sale Securities, 298,106 Securities in a Continuous Less than 12 Months $ 74,088 $ — $ 263,292 $ — $ 337,380 12 Months or Longer 29,214 — — 800 30,014 Total $ 103,302 $ — $ 263,292 $ 800 $ 367,394 Number of Securities in a 14 — 39 1 54 Unrealized Losses on Less than 12 Months $ 912 $ — $ 2,608 $ — $ 3,520 12 Months or Longer 786 — — 200 986 Total $ 1,698 $ — $ 2,608 $ 200 $ 4,506 Disaggregated Details: US Agency Obligations, $ 110,000 US Agency Obligations, 108,365 US Government Agency $ 9,386 US Government Agency 9,371 Government Sponsored Entity 439,356 Government Sponsored Entity 440,380 Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total September 30, 2021 Available-For-Sale Securities, $ 110,001 $ 400 $ 373,042 $ 1,000 $ 484,443 Gross Unrealized Gains 96 — 5,225 — 5,321 Gross Unrealized Losses (792) — (1,872) (200) (2,864) Available-For-Sale Securities, 109,305 400 376,395 800 486,900 Available-For-Sale Securities, 361,014 Securities in a Continuous Less than 12 Months $ 74,695 $ — $ 190,532 $ — $ 265,227 12 Months or Longer 29,513 — — 800 30,313 Total $ 104,208 $ — $ 190,532 $ 800 $ 295,540 Number of Securities in a 14 — 27 1 42 Unrealized Losses on Securities Less than 12 Months $ 305 $ — $ 1,872 $ — $ 2,177 12 Months or Longer 487 — — 200 687 Total $ 792 $ — $ 1,872 $ 200 $ 2,864 Disaggregated Details: US Agency Obligations, $ 110,001 US Agency Obligations, 109,305 US Government Agency $ 10,119 US Government Agency 10,165 Government Sponsored Entity 362,923 Government Sponsored Entity 366,230 At September 30, 2022, there was no allowance for credit losses for the AFS debt securities portfolio. The following table is the schedule of Held-To-Maturity Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Held-To-Maturity Securities State and Mortgage- Total September 30, 2022 Held-To-Maturity Securities, $ 169,619 $ 12,559 $ 182,178 Gross Unrealized Gains 1 — 1 Gross Unrealized Losses (5,771) (608) (6,379) Held-To-Maturity Securities, 163,849 11,951 175,800 Held-To-Maturity Securities, 153,364 Held-To-Maturity Securities State and Mortgage- Total Maturities of Debt Securities, Within One Year $ 50,423 $ — $ 50,423 From 1 - 5 Years 115,113 12,559 127,672 From 5 - 10 Years 4,044 — 4,044 Over 10 Years 39 — 39 Maturities of Debt Securities, Within One Year $ 50,058 $ — $ 50,058 From 1 - 5 Years 109,945 11,951 121,896 From 5 - 10 Years 3,807 — 3,807 Over 10 Years 39 — 39 Securities in a Continuous Less than 12 Months $ 141,132 $ 11,951 $ 153,083 12 Months or Longer — — — Total $ 141,132 $ 11,951 $ 153,083 Number of Securities in a 419 16 435 Unrealized Losses on Securities Less than 12 Months $ 5,771 $ 608 $ 6,379 12 Months or Longer — — — Total $ 5,771 $ 608 $ 6,379 Disaggregated Details: US Government Agency $ 4,115 US Government Agency 3,924 Government Sponsored Entity 8,444 Government Sponsored Entity 8,027 Held-To-Maturity Securities State and Mortgage- Total December 31, 2021 Held-To-Maturity Securities, $ 180,195 $ 16,371 $ 196,566 Gross Unrealized Gains 4,179 547 4,726 Gross Unrealized Losses — — — Held-To-Maturity Securities, 184,374 16,918 201,292 Held-To-Maturity Securities, 175,218 Securities in a Continuous Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Number of Securities in a — — — Unrealized Losses on Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Disaggregated Details: US Government Agency $ 5,518 US Government Agency 5,647 Government Sponsored Entity 10,853 Government Sponsored Entity 11,271 Held-To-Maturity Securities State and Mortgage- Total September 30, 2021 Held-To-Maturity Securities, $ 179,952 $ 18,385 $ 198,337 Gross Unrealized Gains 4,834 765 5,599 Gross Unrealized Losses — — — Held-To-Maturity Securities, 184,786 19,150 203,936 Held-To-Maturity Securities, 192,929 Securities in a Continuous Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Number of Securities in a — — — Unrealized Losses on Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — September 30, 2021 Disaggregated Details: US Government Agency $ 6,302 US Government Agency 6,506 Government Sponsored Entity 12,083 Government Sponsored Entity 12,644 In the tables above, maturities of mortgage-backed securities are included based on their expected average lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties. 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 September 30, 2022, gross unrealized losses were primarily 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 the security before recovery of its amortized cost basis, which may be at maturity. Therefore, Arrow carried no allowance for credit loss at September 30, 2022 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during the three months ended September 30, 2022. Arrow's held to maturity 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 performs an analysis of the credit worthiness of municipal obligations to determine if a security is of investment grade. The analysis may include but may not solely rely upon credit analysis conducted by external credit rating agencies. Arrow determined that the expected credit loss on its held to maturity debt portfolio was immaterial and therefore no allowance for credit loss was recorded as of September 30, 2022. The following table is the schedule of Equity Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Equity Securities September 30, 2022 December 31, 2021 September 30, 2021 Equity Securities, at Fair Value $2,126 $1,747 $1,886 The following is a summary of realized and unrealized gains recognized in net income on equity securities during the three and nine month periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Net Gain on Equity Securities $ 95 $ (106) $ 379 $ 250 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 $ 95 $ (106) $ 379 $ 250 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | LOANS (In Thousands) Loan Categories and Past Due Loans The following two tables present loan balances outstanding as of September 30, 2022 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. Loans held-for-sale of $483, $1,154 and $2,169 as of September 30, 2022, December 31, 2021 and September 30, 2021, 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 September 30, 2022 Loans Past Due 30-59 Days $ 86 $ — $ 8,870 $ 393 $ 9,349 Loans Past Due 60-89 Days 80 — 4,397 1,266 5,743 Loans Past Due 90 or more Days — 235 1,708 3,487 5,430 Total Loans Past Due 166 235 14,975 5,146 20,522 Current Loans 138,807 678,982 1,040,610 1,045,873 2,904,272 Total Loans $ 138,973 $ 679,217 $ 1,055,585 $ 1,051,019 $ 2,924,794 December 31, 2021 Loans Past Due 30-59 Days $ 202 $ — $ 6,713 $ 107 $ 7,022 Loans Past Due 60-89 Days 3 — 2,709 2,557 5,269 Loans Past Due 90 or more Days 157 1,180 1,564 1,981 4,882 Total Loans Past Due 362 1,180 10,986 4,645 17,173 Current Loans 172,156 627,749 909,570 941,293 2,650,768 Total Loans $ 172,518 $ 628,929 $ 920,556 $ 945,938 $ 2,667,941 September 30, 2021 Loans Past Due 30-59 Days $ 729 $ — $ 4,809 $ 368 $ 5,906 Loans Past Due 60-89 Days 63 — 2,543 1,295 3,901 Loans Past Due 90 or more Days 75 1,641 1,010 1,951 4,677 Total Loans Past Due 867 1,641 8,362 3,614 14,484 Current Loans 187,324 613,440 912,827 926,676 2,640,267 Total Loans $ 188,191 $ 615,081 $ 921,189 $ 930,290 $ 2,654,751 Schedule of Non Accrual Loans by Category Commercial September 30, 2022 Commercial Real Estate Consumer Residential Total Loans 90 or More Days Past Due $ — $ — $ — $ 514 $ 514 Nonaccrual Loans 9 3,401 1,708 3,694 8,812 Nonaccrual With No Allowance for Credit Loss 9 3,401 1,708 3,694 8,812 Interest Income on Nonaccrual Loans — — — 12 12 December 31, 2021 Loans 90 or More Days Past Due $ 157 $ — $ — $ 666 $ 823 Nonaccrual Loans 34 7,243 1,697 1,790 10,764 September 30, 2021 Loans 90 or More Days Past Due $ — $ — $ — $ 555 $ 555 Nonaccrual Loans 91 7,766 1,101 1,765 10,723 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. Generally, these loans carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable and generally have a lower liquidation value than real estate. 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, commercial structures, housing businesses, healthcare facilities, and both owner- and non-owner-occupied facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings, and are generally originated in amounts of no more than 80% of the appraised value of the property. However, 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, commercial structures, housing businesses, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete project. 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 one 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's policy allows for a maximum loan to value ratio of 80%, although periodically higher advances are allowed. 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 Paycheck Protection Program (PPP), commercial non-PPP, commercial real estate, consumer and residential real estate loans. The consumer segment is mainly comprised of automobile loans, and since they are relatively short-term in nature, with similar dollar amounts and collateral, the vintage analysis method was selected to determine the credit loss reserve. The vintage method utilizes Arrow loan data exclusively as the method calculates a loss rate based on the total origination balance of the loans by year and the charge-off and recovery rate of the same origination year. Arrow maintains, over the life of the loan, the loss curve by vintage year. The discounted cash flow method (DCF) is used to calculate the reserve for credit losses for the commercial, commercial real estate and residential real estate segments. The September 30, 2022 allowance for credit losses calculation incorporated a reasonable and supportable forecast period to account for economic conditions utilized in the measurement. The quantitative model utilized an economic forecast sourced from reputable third-parties that reflects the economic conditions with a deterioration of approximately 0.45% in the national unemployment rate during the six-quarter forecast period, while forecasted gross domestic product are projected to decline approximately 1.00%. The home price index (HPI) forecast declined approximately 4.63% from the previous quarter level. The recent volatility of the national HPI forecast in projecting growth and decline is beyond any recent actual change when compared to the Albany Metropolitan Statistical Area for the last 10 years and is considered to be a unique circumstance not reflective of current economic conditions in our markets. As a result, an additional qualitative adjustment was utilized during 2022 to address risk outside of the quantitative model. Key assumptions utilized in the CECL calculation include loan segmentation, loan loss regression analysis, reasonable and supportable forecast period, reversion period, discounted cash flow inputs including economic forecast data and prepayment and curtailment speeds and qualitative factors. Key assumptions are reviewed and approved on a quarterly basis. There was one assumption change for the third quarter calculation. Demand loans, which do not have a maturity date, now utilize a 1-year maturity as the loans are reviewed annually. The loans previously utilized a 10-year maturity. Driven by current economic forecasts, loan growth and net charge offs during the quarter, the third quarter provision for credit losses was $1.7 million. The provision is directionally consistent with both the latest economic forecasts as well as third quarter activity. Management's evaluation considers the allowance for credit losses for loans to be appropriate as of September 30, 2022. The following table details activity in the allowance for credit losses on loans for the three and nine months ended September 30, 2022 and September 30, 2021: Allowance for Credit Losses Commercial Commercial Real Estate Consumer Residential Total June 30, 2022 $ 2,465 $ 13,936 $ 2,358 $ 9,331 $ 28,090 Charge-offs (44) — (1,103) — (1,147) Recoveries — — 574 — 574 Provision (416) 930 692 509 1,715 September 30, 2022 $ 2,005 $ 14,866 $ 2,521 $ 9,840 $ 29,232 December 31, 2021 $ 2,298 $ 13,136 $ 2,402 $ 9,445 $ 27,281 Charge-offs $ (48) $ — $ (2,805) $ (30) $ (2,883) Recoveries $ 26 $ — $ 1,419 $ — $ 1,445 Provision $ (271) $ 1,730 $ 1,505 $ 425 $ 3,389 September 30, 2022 $ 2,005 $ 14,866 $ 2,521 $ 9,840 $ 29,232 June 30, 2021 $ 2,241 $ 13,606 $ 2,443 $ 8,720 $ 27,010 Charge-offs (17) — (427) — $ (444) Recoveries — — 291 — $ 291 Provision 200 65 (19) (147) $ 99 September 30, 2021 $ 2,424 $ 13,671 $ 2,288 $ 8,573 $ 26,956 Balance as of January 1, 2021 as adjusted for ASU 2016-13 $ 4,257 $ 12,054 $ 2,179 $ 9,442 $ 27,932 Charge-offs (37) — (1,480) (3) (1,520) Recoveries — — 830 — 830 Provision (1,796) 1,617 759 (866) (286) September 30, 2021 $ 2,424 $ 13,671 $ 2,288 $ 8,573 $ 26,956 Estimated Credit Losses on Off-Balance Sheet Credit Exposures Recognized as Other Liabilities Financial instrument credit losses apply to off-balance sheet credit exposures such as unfunded loan commitments and standby letters of credit. A liability for expected credit losses for off-balance sheet exposures is recognized if the entity has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable by the entity. Changes in this allowance are reflected in other operating expenses within the non-interest expense category. As of September 30, 2022, the total unfunded commitment off-balance sheet credit exposure was $1.6 million. Individually Evaluated Loans All loans not included in the vintage analysis method that exceed $250,000, which are on nonaccrual status, are evaluated on an individual basis. Arrow made the policy election to apply a practical expedient for collateral dependent financial assets when the borrower is experiencing financial difficulty and the repayment is expected through the sale of the collateral. This allows Arrow to use fair value of the collateral at the reporting date adjusted for estimated cost to sell when recording the net carrying amount of the asset and determining the allowance for credit losses for a financial asset. In the event where the repayment of a collateral dependent financial asset is expected to be provided substantially through the operating of the collateral, Arrow will use fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the allowance for credit losses. As of September 30, 2022, there were four total relationships identified to be evaluated for loss on an individual basis which had an amortized cost basis of $4.7 million and none had an allowance for credit loss. The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 3,166 3,166 Consumer — — — Residential 1,494 — 1,494 Total $ 1,494 $ 3,166 $ 4,660 December 31, 2021 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 6,732 6,732 Consumer — — — Residential 673 — 673 Total $ 673 $ 6,732 $ 7,405 September 30, 2021 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 7,254 7,254 Consumer — — — Residential 676 — 676 Total $ 676 $ 7,254 $ 7,930 Allowance for Credit Losses - Collectively and Individually Evaluated Commercial Commercial Real Estate Consumer Residential Total September 30, 2022 Ending Loan Balance - Collectively Evaluated $ 138,973 $ 676,051 $ 1,055,585 $ 1,049,525 $ 2,920,134 Allowance for Credit Losses - Loans Collectively Evaluated 2,005 14,866 2,521 9,840 29,232 Ending Loan Balance - Individually Evaluated — 3,166 — 1,494 4,660 Allowance for Credit Losses - Loans Individually Evaluated — — — — — December 31, 2021 Ending Loan Balance - Collectively Evaluated $ 172,518 $ 622,197 $ 920,556 $ 945,265 $ 2,660,536 Allowance for Credit Losses - Loans Collectively Evaluated 2,298 12,537 2,402 9,445 $ 26,682 Ending Loan Balance - Individually Evaluated — 6,732 — 673 7,405 Allowance for Credit Losses - Loans Individually Evaluated — 599 — — 599 September 30, 2021 Ending Loan Balance - Collectively Evaluated $ 188,191 $ 607,827 $ 921,189 $ 929,614 $ 2,646,821 Allowance for Credit Losses - Loans Collectively Evaluated 2,424 13,055 2,288 8,573 26,340 Ending Loan Balance - Individually Evaluated — 7,254 — 676 7,930 Allowance for Credit Losses - Loans Individually Evaluated — 616 — — 616 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. Arrow considers the qualitative factors that are relevant as of the reporting date, which may include, but are not limited to the following factors: • The nature and volume of Arrow's financial assets; • The existence, growth, and effect of any concentrations of credit; • The volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; • The value of the underlying collateral for loans that are not collateral-dependent; • Arrow's lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries; • The quality of Arrow's loan review function; • The experience, ability, and depth of Arrow's lending, investment, collection, and other relevant management/staff; • The effect of other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters; • Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the institution operates that affect the collectability of financial assets; and, • Other qualitative factors not reflected in quantitative loss rate calculations. Loan Credit Quality Indicators The following tables present credit quality indicators by total loans amortized cost basis by origination year as of September 30, 2022, December 31, 2021 and September 30, 2021: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total September 30, 2022 2022 2021 2020 2019 2018 Prior Commercial: Risk rating Satisfactory $ 34,589 $ 31,762 $ 26,654 $ 7,554 $ 9,605 $ 11,194 $ 8,008 $ — $ 129,366 Special mention — — — — — 35 35 — 70 Substandard — 3,318 479 445 — 37 5,258 — 9,537 Doubtful — — — — — — — — — Total Commercial Loans $ 34,589 $ 35,080 $ 27,133 $ 7,999 $ 9,605 $ 11,266 $ 13,301 $ — $ 138,973 Commercial Real Estate: Risk rating Satisfactory $ 106,549 $ 136,306 $ 247,780 $ 40,959 $ 30,667 $ 64,934 $ 3,052 $ — $ 630,247 Special mention 9,801 — 2,973 — 4,315 1,425 — — 18,514 Substandard 9,531 4,723 11,352 1,133 93 3,403 221 — 30,456 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 125,881 $ 141,029 $ 262,105 $ 42,092 $ 35,075 $ 69,762 $ 3,273 $ — $ 679,217 Consumer: Risk rating Performing $ 406,206 $ 309,006 $ 172,974 $ 101,458 $ 47,874 $ 15,933 $ 483 $ — $ 1,053,934 Nonperforming 268 583 351 304 58 87 — — 1,651 Total Consumer Loans $ 406,474 $ 309,589 $ 173,325 $ 101,762 $ 47,932 $ 16,020 $ 483 $ — $ 1,055,585 Residential: Risk rating Performing $ 163,702 $ 209,408 $ 173,435 $ 84,370 $ 61,907 $ 232,021 $ 122,191 $ — $ 1,047,034 Nonperforming — 257 939 28 318 2,268 175 — 3,985 Total Residential Loans $ 163,702 $ 209,665 $ 174,374 $ 84,398 $ 62,225 $ 234,289 $ 122,366 $ — $ 1,051,019 Total Loans $ 730,646 $ 695,363 $ 636,937 $ 236,251 $ 154,837 $ 331,337 $ 139,423 $ — $ 2,924,794 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total December 31, 2021 2021 2020 2019 2018 2017 Prior Commercial: Risk rating Satisfactory $ 75,615 $ 35,522 $ 11,591 $ 11,661 $ 7,792 $ 3,442 $ 12,783 $ — $ 158,406 Special mention — — 3 — — 5,899 — — 5,902 Substandard 3,541 3,791 589 — 25 12 252 — 8,210 Doubtful — — — — — — — — — Total Commercial Loans $ 79,156 $ 39,313 $ 12,183 $ 11,661 $ 7,817 $ 9,353 $ 13,035 $ — $ 172,518 Commercial Real Estate: Risk rating Satisfactory $ 140,636 $ 276,461 $ 42,369 $ 37,997 $ 22,155 $ 59,698 $ 1,923 $ — $ 581,239 Special mention — 7,893 1,204 — 137 1,906 — — 11,140 Substandard 7,248 16,405 3,910 96 — 8,867 24 — 36,550 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 147,884 $ 300,759 $ 47,483 $ 38,093 $ 22,292 $ 70,471 $ 1,947 $ — $ 628,929 Consumer: Risk rating Performing $ 402,558 $ 239,492 $ 154,517 $ 82,673 $ 29,587 $ 9,578 $ 455 $ — $ 918,860 Nonperforming 388 399 502 151 160 96 — — 1,696 Total Consumer Loans $ 402,946 $ 239,891 $ 155,019 $ 82,824 $ 29,747 $ 9,674 $ 455 $ — $ 920,556 Residential: Risk rating Performing $ 187,708 $ 146,113 $ 93,547 $ 88,505 $ 93,524 $ 215,679 $ 118,595 $ — $ 943,671 Nonperforming — 133 — 27 162 1,907 38 — 2,267 Total Residential Loans $ 187,708 $ 146,246 $ 93,547 $ 88,532 $ 93,686 $ 217,586 $ 118,633 $ — $ 945,938 Total Loans $ 817,694 $ 726,209 $ 308,232 $ 221,110 $ 153,542 $ 307,084 $ 134,070 $ — $ 2,667,941 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total September 30, 2021 2021 2020 2019 2018 2017 Prior Commercial: Risk rating Satisfactory $ 81,914 $ 38,970 $ 13,966 $ 12,860 $ 8,511 $ 3,917 $ 12,796 $ — $ 172,934 Special mention — 652 51 — — 5,499 — — 6,202 Substandard 3,575 4,496 636 — 31 295 22 — 9,055 Doubtful — — — — — — — — — Total Commercial Loans $ 85,489 $ 44,118 $ 14,653 $ 12,860 $ 8,542 $ 9,711 $ 12,818 $ — $ 188,191 Commercial Real Estate: Risk rating Satisfactory $ 96,419 $ 290,785 $ 47,605 $ 41,215 $ 22,661 $ 62,203 $ 2,935 $ — $ 563,823 Special mention — 16,829 1,227 — 139 1,976 — — 20,171 Substandard 7,248 10,359 3,950 146 — 9,384 — — 31,087 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 103,667 $ 317,973 $ 52,782 $ 41,361 $ 22,800 $ 73,563 $ 2,935 $ — $ 615,081 Consumer: Risk rating Performing $ 330,952 $ 264,963 $ 175,448 $ 97,563 $ 37,112 $ 13,572 $ 477 $ — $ 920,087 Nonperforming 203 319 332 160 30 58 — — 1,102 Total Consumer Loans $ 331,155 $ 265,282 $ 175,780 $ 97,723 $ 37,142 $ 13,630 $ 477 $ — $ 921,189 Residential: Risk rating Performing $ 124,536 $ 154,071 $ 101,678 $ 94,621 $ 97,457 $ 231,375 $ 124,231 $ — $ 927,969 Nonperforming — 336 — 155 213 1,586 31 — 2,321 Total Residential Loans $ 124,536 $ 154,407 $ 101,678 $ 94,776 $ 97,670 $ 232,961 $ 124,262 $ — $ 930,290 Total Loans $ 644,847 $ 781,780 $ 344,893 $ 246,720 $ 166,154 $ 329,865 $ 140,492 $ — $ 2,654,751 For the purposes of the table above, nonperforming consumer and residential loans were those loans on nonaccrual status or were 90 days or more past due and still accruing interest. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $2.2 million. 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 sound 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 non-accrual; 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. Loans Modified in Trouble Debt Restructurings The following table presents information on loans modified in trouble debt restructurings during the periods indicated: Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: September 30, 2022 Number of Loans — — — — — Pre-Modification Outstanding Recorded Investment $ — $ — $ — $ — $ — Post-Modification Outstanding Recorded Investment — — — — — Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2021 Number of Loans — — — — — Pre-Modification Outstanding Recorded Investment $ — $ — $ — $ — $ — Post-Modification Outstanding Recorded Investment — — — — — Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — In general, prior to the COVID-19 pandemic |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (In Thousands) The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of September 30, 2022, December 31, 2021 and September 30, 2021: Commitments to Extend Credit and Letters of Credit September 30, 2022 December 31, 2021 September 30, 2021 Notional Amount: Commitments to Extend Credit $ 440,167 $ 402,280 $ 431,452 Standby Letters of Credit 3,445 3,223 3,392 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit — 24 21 Arrow is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit include home equity lines of credit, commitments for residential and commercial construction loans and other personal and commercial lines of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement Arrow has in particular classes of financial instruments. Arrow's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. Arrow uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are not expected to be fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Arrow evaluates each customer's creditworthiness on a case-by-case basis. Home equity lines of credit are secured by residential real estate. Construction lines of credit are secured by underlying real estate. For other lines of credit, the amount of collateral obtained, if deemed necessary by Arrow upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Most of the commitments are variable rate instruments. Arrow does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit. Arrow has issued conditional commitments in the form of standby letters of credit to guarantee payment on behalf of a customer and guarantee the performance of a customer to a third party. Standby letters of credit generally arise in connection with commercial lending relationships. The credit risk involved in issuing these instruments is essentially the same as that involved in extending loans to customers. Contingent obligations under standby letters of credit at September 30, 2022, December 31, 2021 and September 30, 2021 represent the maximum potential future payments Arrow could be required to make. Typically, these instruments have terms of 12 months or less and expire unused; therefore, the total amounts do not necessarily represent future cash requirements. Each customer is evaluated individually for creditworthiness under the same underwriting standards used for commitments to extend credit and on-balance sheet instruments. Arrow's policies governing loan collateral apply to standby letters of credit at the time of credit extension. Loan-to-value ratios will generally range from 50% for movable assets, such as inventory, to 100% for liquid assets, such as bank CD's. Fees for standby letters of credit range from 1% to 3% of the notional amount. Fees are collected upfront and amortized over the life of the commitment. The carrying amount and fair value of Arrow's standby letters of credit at September 30, 2022, December 31, 2021 and September 30, 2021, were insignificant. The fair value of standby letters of credit is based on the fees currently charged for similar agreements or the cost to terminate the arrangement with the counterparties. The fair value of commitments to extend credit is determined by estimating the fees to enter into similar agreements, taking into account the remaining terms and present creditworthiness of the counterparties, and for fixed rate loan commitments, the difference between the current and committed interest rates. Arrow provides several types of commercial lines of credit and standby letters of credit to its commercial customers. The pricing of these services is not isolated as Arrow considers the customer's complete deposit and borrowing relationship in pricing individual products and services. The commitments to extend credit also include commitments under home equity lines of credit, for which Arrow charges no fee. The carrying value and fair value of commitments to extend credit are not material and Arrow does not expect to incur any material loss as a result of these commitments. In the normal course of business, Arrow and its subsidiary banks become involved in a variety of routine legal proceedings. At present, there are no legal proceedings pending or threatened, which in the opinion of management and counsel, would result in a material loss to Arrow, except as noted below. |
Comprehensive (Loss) Income
Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive (Loss) Income | COMPREHENSIVE (LOSS) INCOME (In Thousands) The following table presents the components of other comprehensive (loss) income for the three and nine month periods ended September 30, 2022 and 2021: Schedule of Comprehensive (Loss) Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax Benefit Net-of-Tax Before-Tax Benefit Net-of-Tax Amount (Expense) Amount Amount (Expense) Amount 2022 Net Unrealized Securities Holding Loss on Securities Available-for-Sale Arising During the Period $ (27,945) $ 7,144 $ (20,801) $ (70,945) $ 18,137 $ (52,808) Net Unrealized Gain on Cash Flow Swap 1,046 (268) 778 3,737 (956) 2,781 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense 75 (20) 55 57 (15) 42 Amortization of Net Retirement Plan Actuarial Loss 564 (144) 420 592 (151) 441 Amortization of Net Retirement Plan Prior Service Cost 57 (15) 42 171 (44) 127 Other Comprehensive Loss $ (26,203) $ 6,697 $ (19,506) $ (66,388) $ 16,971 $ (49,417) 2021 Net Unrealized Securities Holding Loss on Securities Available-for-Sale Arising During the Period $ (1,719) $ 440 $ (1,279) $ (5,333) $ 1,364 $ (3,969) Net Unrealized Gain on Cash Flow Swap 245 (62) 183 1,281 (327) 954 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense (34) 9 (25) (92) 24 (68) Amortization of Net Retirement Plan Actuarial Loss 22 (5) 17 68 (17) 51 Amortization of Net Retirement Plan Prior Service Cost 59 (16) 43 175 (46) 129 Other Comprehensive Loss $ (1,427) $ 366 $ (1,061) $ (3,901) $ 998 $ (2,903) The following table presents the changes in accumulated other comprehensive (loss) income by component: Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) Unrealized (Loss) and Gain on Available-for-Sale Securities Unrealized Gain on Cash Flow Swap Defined Benefit Plan Items Total Net Actuarial Loss Net Prior Service Cost For the Quarter-To-Date periods ended: June 30, 2022 $ (32,621) $ 3,310 $ 660 $ (913) $ (29,564) Other comprehensive income or loss before reclassifications (20,801) 778 — — (20,023) Amounts reclassified from accumulated other comprehensive income or loss — 55 420 42 517 Net current-period other comprehensive income or loss (20,801) 833 420 42 (19,506) September 30, 2022 $ (53,422) $ 4,143 $ 1,080 $ (871) $ (49,070) June 30, 2021 $ 3,109 $ 1,213 $ (5,895) $ (1,085) $ (2,658) Other comprehensive income or loss before reclassifications (1,279) 183 — — (1,096) Amounts reclassified from accumulated other comprehensive income or loss — (25) 17 43 35 Net current-period other comprehensive income or loss (1,279) 158 17 43 (1,061) September 30, 2021 $ 1,830 $ 1,371 $ (5,878) $ (1,042) $ (3,719) For the Year-To-Date periods ended: December 31, 2021 $ (614) $ 1,320 $ 639 $ (998) $ 347 Other comprehensive income or loss before reclassifications (52,808) 2,781 — — (50,027) Amounts reclassified from accumulated other comprehensive income or loss — 42 441 127 610 Net current-period other comprehensive income or loss (52,808) 2,823 441 127 (49,417) September 30, 2022 $ (53,422) $ 4,143 $ 1,080 $ (871) $ (49,070) December 31, 2020 $ 5,799 $ 485 $ (5,929) $ (1,171) $ (816) Other comprehensive income or loss before reclassifications (3,969) 954 — — (3,015) Amounts reclassified from accumulated other comprehensive income — (68) 51 129 112 Net current-period other comprehensive income or loss (3,969) 886 51 129 (2,903) September 30, 2021 $ 1,830 $ 1,371 $ (5,878) $ (1,042) $ (3,719) (1) All amounts are net of tax. The following table presents the reclassifications out of accumulated other comprehensive income or loss: Reclassifications Out of Accumulated Other Comprehensive Income or Loss Details about Accumulated Other Comprehensive Income or Loss Components Amounts Reclassified from Accumulated Other Comprehensive Income or Loss Affected Line Item in the Statement Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2022 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ (75) Interest expense Amortization of defined benefit pension items: Prior-service costs (57) (1) Salaries and Employee Benefits Actuarial loss (564) (1) Salaries and Employee Benefits (696) Total before Tax 179 Provision for Income Taxes Total reclassifications for the period $ (517) Net of Tax September 30, 2021 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ 34 Interest expense Amortization of defined benefit pension items: Prior-service costs $ (59) (1) Salaries and Employee Benefits Actuarial loss (22) (1) Salaries and Employee Benefits (47) Total before Tax 12 Provision for Income Taxes Total reclassifications for the period $ (35) Net of Tax For the Year-to-date periods ended: September 30, 2022 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ (57) Interest expense Amortization of defined benefit pension items: Prior-service costs (171) (1) Salaries and Employee Benefits Actuarial loss (592) (1) Salaries and Employee Benefits (820) Total before Tax 210 Provision for Income Taxes Total reclassifications for the period $ (610) Net of Tax September 30, 2021 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense 92 Interest expense Amortization of defined benefit pension items: Prior-service costs $ (175) (1) Salaries and Employee Benefits Actuarial loss (68) (1) Salaries and Employee Benefits (151) Total before Tax 39 Provision for Income Taxes Total reclassifications for the period $ (112) Net of Tax (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
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 23, 2022 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, restricted stock units, performance units and performance shares. The Compensation Committee of the Board of Directors administers the Long Term Incentive Plan. 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 September 30, 2022: Shares Weighted Average Exercise Price Outstanding at January 1, 2022 278,899 $ 27.62 Granted 58,710 34.79 Exercised (17,803) 20.56 Forfeited (18,844) 30.71 Outstanding at September 30, 2022 300,962 29.24 Vested at Period-End 178,250 27.56 Expected to Vest 122,712 31.68 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 7.43 Fair Value Assumptions: Dividend Yield 2.90 % Expected Volatility 27.15 % Risk Free Interest Rate 1.69 % Expected Lives (in years) 8.56 The following table presents information on the amounts expensed related to stock options for the three and nine month periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Amount expensed $ 79 $ 71 $ 233 $ 212 Restricted Stock Units - The Company grants restricted stock units which gives 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. Once vested, the restricted stock units become vested units and are no longer forfeitable. Vested units settle upon retirement 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. The following table summarizes information about restricted stock unit activity for the periods ended September 30, 2022 and 2021: Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 13,599 $ 29.27 Granted 4,312 34.79 Vested (4,391) 28.17 Non-vested at September 30, 2022 13,520 31.38 Non-vested at January 1, 2021 12,373 29.81 Granted 5,026 27.71 Vested (3,800) 28.95 Non-vested at September 30, 2021 13,599 29.27 The following table presents information on the amounts expensed related to restricted stock units for the periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Amount expensed $ 35 $ 32 $ 105 $ 98 Employee Stock Purchase Plan Arrow sponsors an ESPP under which employees may purchase Arrow's common stock at a discount below market price. The current amount of the discount is 5%. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. 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 makes cash contributions to the ESOP each year. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | RETIREMENT BENEFIT PLANS (Dollars in Thousands) Arrow sponsors qualified and non-qualified defined benefit pension plans and other postretirement benefit plans for its employees. Arrow maintains a non-contributory pension plan, which covers substantially all employees. Effective December 1, 2002, all active participants in the qualified defined benefit pension plan were given a one-time irrevocable election to continue participating in the traditional plan design, for which benefits were based on years of service and the participant’s final compensation (as defined), or to begin participating in the new cash balance plan design. All employees who first participate in the plan after December 1, 2002 automatically participate in the cash balance plan design. The interest credits under the cash balance plan are based on the 30-year U.S. Treasury rate in effect for November of the prior year with a minimum interest credit of 3%. The service credits under the cash balance plan are equal to 6.0% of eligible salaries for employees who become participants on or after January 1, 2003. For employees in the plan prior to January 1, 2003, the service credits are scaled based on the age of the participant, and range from 6.0% to 12.0%. The funding policy is to contribute up to the maximum amount that can be deducted for federal income tax purposes and to make all payments required under The Employee Retirement Income Security Act (ERISA). Arrow also maintains a supplemental non-qualified unfunded retirement plan to provide eligible employees of Arrow and its subsidiaries with benefits in excess of qualified plan limits imposed by federal tax law. Arrow has multiple non-pension postretirement benefit plans. The health care, dental and life insurance plans are contributory, with participants’ contributions adjusted annually. Arrow’s policy is to fund the cost of postretirement benefits based on the current cost of the underlying policies. However, the health care plan provision allows for grandfathered participants to receive automatic increases of Company contributions each year based on the increase in inflation, limited to a maximum of 5%. As of December 31, 2021, Arrow began using the sex-distinct amount-weighted Pri-2012 mortality tables for employees, healthy annuitants and contingent survivors, adjusted for mortality improvements with the Scale MP-2021 mortality improvement scale on a generational basis for the Pension Plan and the sex-distinct amount-weighted White Collar tables for employees, healthy annuitants and contingent survivors, adjusted for mortality improvements with the scale MP-2021 mortality improvement scale on a generational basis for the Select Executive Retirement Plan. As of December 31, 2021, Arrow began using the sex-distinct Pri.H-2012 headcount-weighted mortality tables for employees and healthy annuitants, adjusted for mortality improvements with the Scale MP-2021 mortality improvement scale on a generational basis. Segment interest rates of 1.02%, 2.72%, 3.08% were used in determining the present value of a lump sum payment/annuitizing cash balance accounts for the 2021 plan year. Effective January 1, 2021, Glens Falls National amended the Arrow Financial Corporation Employees' Pension Plan (the "Plan"). The Plan change was adopted January 1, 2021 and the amendment was valued as of December 31, 2020. The Plan amendment was as follows: Effective January 1, 2021, the benefit payable to or on behalf of each participant: • whose employment with the Employer (or any predecessor Employer, except as noted below) terminated on or before • who satisfied the requirements for early, normal, or late retirement as of such termination; • who never participated in the United Vermont Bancorporation Plan; and • who is, or whose beneficiary is, receiving monthly benefit payments from the Plan as of January 1, 2021 (including a The foregoing increase was applied to the monthly benefit actually payable to the participant, or to the participant's beneficiary, as of January 1, 2021, determined after all applicable adjustments, regardless of whether such benefit had been determined under the Company's plan or the plan of a predecessor employer that had been merged into the Plan. The plan amendment caused a $351,638 increase in the projected benefit obligation creating a positive service cost which will be amortized over 9.70 years (the average expected future service of active plan participants.) Effective January 1, 2021, Glens Falls National amended the Arrow Financial Corporation Employees' Select Executive Retirement Plan. The plan change was adopted January 1, 2021 and the amendment was valued as of December 31, 2020. The plan amendment provides a special adjustment to the monthly benefit payment for certain retirees. The plan amendment caused a $122,797 increase in the projected benefit obligation creating a positive prior service cost which will be amortized over 12.5 years. Settlement accounting is required when lump sum payments during a fiscal year exceed that fiscal year's Service Cost plus Interest Cost components of the Net Periodic Pension Cost. For 2022, the sum of the Service Cost and Interest Cost is expected to be $3,316,118 and the total lump sum payments through September 30, 2022 have exceeded that amount. The Plan must therefore recognize in the 2022 Net Periodic Pension Cost a portion of the Unamortized Net (Gain)/Loss equal to the ratio of the projected benefit obligation for the participants that received a lump sum to the total projected benefit obligation. As of December 31, 2022, the Unamortized Net (Gain)/Loss prior to reflecting settlement accounting is projected to be approximately $7,000,000. The ratio of the projected benefit obligation for participants that received a lump sum to the total projected benefit obligation is 7.91%. The effect of the settlement that must be recognized in the 2022 Net Periodic Pension Cost is estimated at September 30, 2022 to be $550,000, which has been fully reflected in the Net Periodic Cost for the quarter ended September 30, 2022 . The following tables provide the components of net periodic benefit costs for the three and nine-month periods ended September 30, 2022 and 2021: Employees' Select Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Cost For the Three Months Ended September 30, 2022: Service Cost 1 $ 469 $ 208 $ 23 Interest Cost 2 360 57 61 Expected Return on Plan Assets 2 (1,078) — — Amortization of Prior Service Cost 2 19 11 27 Amortization of Net Loss (Gain) 2 550 53 (39) Net Periodic Cost $ 320 $ 329 $ 72 Plan Contributions During the Period $ — $ 116 $ 43 For the Three Months Ended September 30, 2021: Service Cost 1 $ 484 $ 146 $ 27 Interest Cost 2 340 48 62 Expected Return on Plan Assets 2 (945) — — Amortization of Prior Service Cost 2 20 12 27 Amortization of Net Loss (Gain) 2 — 44 (22) Net Periodic (Benefit) Cost $ (101) $ 250 $ 94 Plan Contributions During the Period $ — $ 118 $ 32 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2022: Service Cost 1 $ 1,408 $ 626 $ 68 Interest Cost 2 1,079 169 185 Expected Return on Plan Assets 2 (3,235) — — Amortization of Prior Service Cost 2 58 33 80 Amortization of Net Loss (Gain) 2 550 159 (117) Net Periodic (Benefit) Cost $ (140) $ 987 $ 216 Plan Contributions During the Period $ — $ 347 $ 131 Estimated Future Contributions in the Current Fiscal Year $ — $ 116 $ 43 For the Nine Months Ended September 30, 2021: Service Cost 1 $ 1,451 $ 437 $ 82 Interest Cost 2 1,023 143 186 Expected Return on Plan Assets 2 (2,835) — — Amortization of Prior Service Cost 2 59 36 80 Amortization of Net Loss (Gain) 2 — 134 (66) Net Periodic (Benefit) Cost $ (302) $ 750 $ 282 Plan Contributions During the Period $ — $ 354 $ 87 Footnotes: 1. Included in Salaries and Employee Benefits on the Consolidated Statements of Income 2. Included in Other Operating Expense on the Consolidated Statements of Income |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE (In Thousands, Except Per Share Amounts) The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share (EPS) for periods ended September 30, 2022 and 2021. When applicable, share and per share amounts have been adjusted for the September 23, 2022, 3% stock dividend. Earnings Per Share Three Months Ended Year-to-Date Period Ended: September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Earnings Per Share - Basic: Net Income $ 12,163 $ 12,989 $ 36,712 $ 39,548 Weighted Average Shares - Basic 16,512 16,508 16,506 16,495 Earnings Per Share - Basic $ 0.74 $ 0.79 $ 2.22 $ 2.40 Earnings Per Share - Diluted: Net Income $ 12,163 $ 12,989 $ 36,712 $ 39,548 Weighted Average Shares - Basic 16,512 16,508 16,506 16,495 Dilutive Average Shares Attributable to Stock Options 46 60 47 59 Weighted Average Shares - Diluted 16,558 16,568 16,553 16,554 Earnings Per Share - Diluted $ 0.74 $ 0.78 $ 2.22 $ 2.39 |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES (Dollars In Thousands) Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 820-10 defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. There are no nonfinancial assets or liabilities measured at fair value on a recurring basis. The only assets or liabilities that Arrow measured at fair value on a recurring basis at September 30, 2022, December 31, 2021 and September 30, 2021 were securities available-for-sale, equity securities and derivatives. Arrow held no securities or liabilities for trading on such dates. The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2022 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 163,965 $ — $ 163,965 $ — State and Municipal Obligations 340 — 340 — Mortgage-Backed Securities 409,949 — 409,949 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 575,054 — 575,054 — Equity Securities 2,126 — 2,126 — Total Securities Measured on a Recurring Basis 577,180 — 577,180 — Derivatives, included in other assets 8,508 — 8,508 — Total Measured on a Recurring Basis $ 585,688 $ — $ 585,688 $ — Liabilities: Derivatives, included in other liabilities 8,508 — 8,508 — Total Measured on a Recurring Basis $ 8,508 $ — $ 8,508 $ — December 31, 2021 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 108,365 $ — $ 108,365 $ — State and Municipal Obligations 400 — 400 — Mortgage-Backed Securities 449,751 — 449,751 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 559,316 — 559,316 — Equity Securities 1,747 — 1,747 — Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Total Securities Measured on a Recurring Basis 561,063 — 561,063 — Derivatives, included in other liabilities 2,083 — 2,083 — Total Measured on a Recurring Basis $ 563,146 $ — $ 563,146 $ — Liabilities: Derivatives, included in other liabilities 2,083 — 2,083 — Total Measured on a Recurring Basis $ 2,083 $ — $ 2,083 $ — September 30, 2021 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 109,305 $ — $ 109,305 $ — State and Municipal Obligations 400 — 400 — Mortgage-Backed Securities 376,395 — 376,395 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 486,900 — 486,900 — Equity Securities 1,886 — 1,886 — Total Securities Measured on a Recurring Basis $ 488,786 $ — $ 488,786 $ — Derivatives, included in other assets 2,287 $ — 2,287 — Total Measured on a Recurring Basis $ 491,073 $ — $ 491,073 $ — Liabilities: Derivatives, included in other liabilities 2,287 — 2,287 — Total Measured on a Recurring Basis $ 2,287 $ — $ 2,287 $ — Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Gains (Losses) Recognized in Earnings Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2022 Collateral Dependent Evaluated Loans $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net 604 — — 604 — December 31, 2021 Collateral Dependent Impaired Loans $ 2,457 $ — $ — $ 2,457 Other Real Estate Owned and Repossessed Assets, Net 126 — — 126 — September 30, 2021 Collateral Dependent Impaired Loans $ 2,456 $ — $ — $ 2,456 Other Real Estate Owned and Repossessed Assets, Net 351 — — 351 13 The fair value of financial instruments is determined under the following hierarchy: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and, • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Fair Value Methodology for Assets and Liabilities Measured on a Recurring Basis The fair value of Level 1 securities available-for-sale are based on unadjusted, quoted market prices from exchanges in active markets. The fair value of Level 2 securities available-for-sale are based on an independent bond and equity pricing service for identical assets or significantly similar securities and an independent equity pricing service for equity securities not actively traded. The pricing services use a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. The fair value of Level 2 equities are based on the last observable price in open markets. The fair value of Level 2 derivatives is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes. Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis The fair value of collateral dependent evaluated loans and other real estate owned was based on third-party appraisals less estimated cost to sell. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Other assets which might have been included in this table include mortgage servicing rights, goodwill and other intangible assets. Arrow evaluates each of these assets for impairment at least annually, with no impairment recognized for these assets at September 30, 2022, December 31, 2021 and September 30, 2021. Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis The fair value for securities held-to-maturity is determined utilizing an independent bond pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" requires that the fair value for loans must be disclosed using the "exit price" notion which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for loans are calculated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect auto and other consumer loans. Each loan category is further segmented into fixed and adjustable interest rate terms and by performing and nonperforming categories. The fair value of performing loans is calculated by determining the estimated future cash flow, which is the contractual cash flow adjusted for estimated prepayments. The discount rate is determined by starting with current market yields, and first adjusting for a liquidity premium. This premium is separately determined for each loan type. Then a credit loss component is determined utilizing the credit loss assumptions used in the allowance for credit loss model. Finally, a discount spread is applied separately for consumer loans vs. commercial loans based on market information and utilization of the swap curve. The fair value of time deposits is based on the discounted value of contractual cash flows, except that the fair value is limited to the extent that the customer could redeem the certificate after imposition of a premature withdrawal penalty. The discount rates are estimated using the Federal Home Loan Bank of New York (FHLBNY) yield curve, which is considered representative of Arrow’s time deposit rates. The fair value of all other deposits is equal to the carrying value. The fair value of FHLBNY advances is calculated by the FHLBNY. The carrying amount of FHLBNY and FRB stock approximates fair value. If the stock was redeemed, the Company will receive an amount equal to the par value of the stock. The book value of the outstanding trust preferred securities (Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts) are considered to approximate fair value since the interest rates are variable (indexed to the London Inter-Bank Offered Rate (LIBOR)) and Arrow is well-capitalized. Fair Value by Balance Sheet Grouping The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 September 30, 2022 Cash and Cash Equivalents $ 373,429 $ 373,429 $ 373,429 $ — $ — Securities Available-for-Sale 575,054 575,054 — 575,054 — Securities Held-to-Maturity 182,178 175,800 — 175,800 — Equity Securities 2,126 2,126 — 2,126 — Federal Home Loan Bank and Federal 4,720 4,720 — 4,720 — Net Loans 2,895,562 2,714,587 — — 2,714,587 Accrued Interest Receivable 8,549 8,549 — 8,549 — Derivatives, included in other assets 8,508 8,508 8,508 Deposits 3,795,105 3,785,960 — 3,785,960 — Federal Home Loan Bank Term Advances 25,000 24,833 — 24,833 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 202 202 — 202 — Derivatives, included in other liabilities 8,508 8,508 — 8,508 — December 31, 2021 Cash and Cash Equivalents $ 457,696 $ 457,696 $ 457,696 $ — $ — Securities Available-for-Sale 559,316 559,316 — 559,316 — Securities Held-to-Maturity 196,566 201,292 — 201,292 — Equity Securities 1,747 1,747 — 1,747 Federal Home Loan Bank and Federal 5,380 5,380 — 5,380 — Net Loans 2,640,660 2,618,311 — — 2,618,311 Accrued Interest Receivable 7,384 7,384 — 7,384 — Derivatives, included in other assets 2,083 2,083 — 2,083 — Deposits 3,550,497 3,548,554 — 3,548,554 — Federal Home Loan Bank Term Advances 45,000 45,518 — 45,518 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 138 138 — 138 — Derivatives, included in other liabilities 2,083 2,083 — 2,083 — September 30, 2021 Cash and Cash Equivalents $ 598,366 $ 598,366 $ 598,366 $ — $ — Securities Available-for-Sale 486,900 486,900 — 486,900 — Securities Held-to-Maturity 198,337 203,936 — 203,936 — Equity Securities 1,886 1,886 — 1,886 Federal Home Loan Bank and Federal 5,380 5,380 — 5,380 — Net Loans 2,627,795 2,632,843 — — 2,632,843 Accrued Interest Receivable 7,899 7,899 — 7,899 — Derivatives, included in other assets 2,287 2,287 — 2,287 — Deposits 3,605,563 3,604,271 — 3,604,271 — Federal Funds Purchased and Securities 2,426 2,426 — 2,426 — Federal Home Loan Bank Term Advances 45,000 45,906 — 45,906 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 137 137 — 137 — Derivatives, included in other liabilities 2,287 2,287 — 2,287 — |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
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. Mr. Gary C. Dake, President of Stewart’s Shops Corp., serves as a Director on the Board of Directors of Arrow, Glens Falls National and Saratoga National. Arrow also leases one administrative office from an entity controlled by Elizabeth Miller, who serves as a Director on the Board of Directors of Arrow, Glens Falls National and Saratoga National. The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2022 and September 30, 2021: Nine Months Ended Finance Lease Amounts: Classification September 30, 2022 September 30, 2021 Right-of-Use Assets Premises and Equipment, Net $ 4,681 $ 4,859 Lease Liabilities Finance Leases 5,131 5,181 Operating Lease Amounts: Right-of-Use Assets Other Assets $ 5,889 $ 6,786 Lease Liabilities Other Liabilities 6,082 6,965 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 145 $ 146 Operating Outgoing Cash Flows From Operating Leases 1,041 571 Financing Outgoing Cash Flows From Finance Leases 38 36 Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities — — Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities — 2,126 Weighted-average Remaining Lease Term - Finance Leases (Yrs.) 27.50 28.46 Weighted-average Remaining Lease Term - Operating Leases (Yrs.) 11.36 11.76 Weighted-average Discount Rate—Finance Leases 3.75 % 3.75 % Weighted-average Discount Rate—Operating Leases 2.87 % 2.85 % Lease cost information for Arrow's leases is as follows: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost: Finance Lease Cost: Reduction of Right-of-Use Assets $ 44 $ 44 $ 133 $ 133 Interest on Lease Liabilities 48 48 145 146 Operating Lease Cost 305 238 925 737 Short-term Lease Cost 9 15 32 28 Variable Lease Cost 86 69 253 203 Total Lease Cost $ 492 $ 414 $ 1,488 $ 1,247 Future Lease Payments at September 30, 2022 are as follows: Operating Leases Financing Leases Twelve Months Ended: 9/30/2023 $ 1,077 $ 243 9/30/2024 723 247 9/30/2025 648 259 9/30/2026 590 268 9/30/2027 561 268 Thereafter 3,698 7,331 Total Undiscounted Cash Flows $ 7,297 $ 8,616 Less: Net Present Value Adjustment 1,215 3,485 Lease Liability $ 6,082 $ 5,131 |
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. Mr. Gary C. Dake, President of Stewart’s Shops Corp., serves as a Director on the Board of Directors of Arrow, Glens Falls National and Saratoga National. Arrow also leases one administrative office from an entity controlled by Elizabeth Miller, who serves as a Director on the Board of Directors of Arrow, Glens Falls National and Saratoga National. The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2022 and September 30, 2021: Nine Months Ended Finance Lease Amounts: Classification September 30, 2022 September 30, 2021 Right-of-Use Assets Premises and Equipment, Net $ 4,681 $ 4,859 Lease Liabilities Finance Leases 5,131 5,181 Operating Lease Amounts: Right-of-Use Assets Other Assets $ 5,889 $ 6,786 Lease Liabilities Other Liabilities 6,082 6,965 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 145 $ 146 Operating Outgoing Cash Flows From Operating Leases 1,041 571 Financing Outgoing Cash Flows From Finance Leases 38 36 Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities — — Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities — 2,126 Weighted-average Remaining Lease Term - Finance Leases (Yrs.) 27.50 28.46 Weighted-average Remaining Lease Term - Operating Leases (Yrs.) 11.36 11.76 Weighted-average Discount Rate—Finance Leases 3.75 % 3.75 % Weighted-average Discount Rate—Operating Leases 2.87 % 2.85 % Lease cost information for Arrow's leases is as follows: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost: Finance Lease Cost: Reduction of Right-of-Use Assets $ 44 $ 44 $ 133 $ 133 Interest on Lease Liabilities 48 48 145 146 Operating Lease Cost 305 238 925 737 Short-term Lease Cost 9 15 32 28 Variable Lease Cost 86 69 253 203 Total Lease Cost $ 492 $ 414 $ 1,488 $ 1,247 Future Lease Payments at September 30, 2022 are as follows: Operating Leases Financing Leases Twelve Months Ended: 9/30/2023 $ 1,077 $ 243 9/30/2024 723 247 9/30/2025 648 259 9/30/2026 590 268 9/30/2027 561 268 Thereafter 3,698 7,331 Total Undiscounted Cash Flows $ 7,297 $ 8,616 Less: Net Present Value Adjustment 1,215 3,485 Lease Liability $ 6,082 $ 5,131 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (In Thousands) Arrow is exposed to certain risks arising from both its business operations and economic conditions. Arrow principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Arrow manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative instruments. Specifically, Arrow enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Arrow's derivative financial instruments are used to manage differences in the amount, timing and duration of known or expected cash receipts and its known or expected cash payments principally related to certain fixed rate borrowings. Arrow also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Derivatives Not Designated as Hedging Instruments Arrow enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously entering into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as a hedge for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to Arrow's consolidated statements of income. Arrow records its interest rate swap agreements at fair value and is presented on a gross basis within other assets and other liabilities on the consolidated balance sheets. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other income in the consolidated statement of income. The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of the interest rate swap agreements: Derivatives Not Designated as Hedging Instruments - Interest Rate Swap Agreements September 30, 2022 December 31, 2021 September 30, 2021 Fair value adjustment included in other assets $ 8,508 $ 2,083 $ 2,287 Fair value adjustment included in other liabilities 8,508 2,083 2,287 Notional amount 134,406 172,668 172,026 Derivatives Designated as Hedging Instruments Arrow has entered into interest rate swaps to synthetically fix the variable rate interest payments associated with $20 million in outstanding subordinated trust securities. These agreements are designated as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (AOCI) and subsequently reclassified into interest expense in the same period during which the hedge transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on Arrow's Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts borrowings. The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income: Derivatives Designated as Hedging Instruments - Cash Flow Hedge Agreements Nine Months Ended Twelve Months Ended Nine Months Ended September 30, 2022 December 31, 2021 September 30, 2021 Amount of gain recognized in AOCI $ 3,737 $ 1,249 $ 1,281 Amount of (loss) gain reclassified from AOCI to interest expense (57) 126 92 |
COVID-19 Pandemic
COVID-19 Pandemic | 9 Months Ended |
Sep. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Pandemic | COVID-19 PANDEMICThe COVID-19 pandemic caused significant disruptions in the United States economy, which impacted the activities and operations of Arrow and its customers. The pandemic also caused disruption in the financial markets both globally and in the United States.Arrow continues to monitor the impact of the pandemic, both during recovery as well as any potential setbacks, including emerging variants, and continues to mitigate the risk of harm to its employees and customers and to its operations. Arrow encourages customers to use contact-free alternatives such as digital banking and ATMs. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Management's Use of Estimates | Management’s Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Management utilized estimates and assumptions in its evaluation of potential impairment of Arrow's right-of-use lease assets, goodwill and intangible assets. Our most significant estimate is the allowance for credit losses. Other estimates include the fair value of financial statements, evaluation of pension and other post-retirement liabilities, an analysis of a need for a valuation allowance for deferred tax assets and a reserve for unfunded loan commitments recorded as an other liability. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term is the allowance for credit losses. In connection with the determination of the allowance for credit losses management obtains economic forecasts from reliable sources and appraisals for properties. The allowance for credit losses is management’s best estimate of the life of loan losses as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for credit losses may be necessary based on changes in economic conditions. |
Allowance for Credit Losses | Allowance for Credit Losses – Loans - Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). It replaces the incurred loss approach’s threshold that required the recognition of a credit loss when it was probable that a loss event was incurred. The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Credit losses are charged off against the allowance when management believes a loan balance is confirmed to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Management estimates the allowance using relevant available information from internal and external sources related to past events, current conditions, and a reasonable and supportable single economic forecast. Historical credit loss experience provides the basis for the estimation of expected credit losses. Arrow's historical loss experience was supplemented with peer information when there was insufficient loss data for Arrow. Peer selection was based on a review of institutions with comparable loss experience as well as loan yield, bank size, portfolio concentration and geography. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in credit concentrations, delinquency level, collateral values and underwriting standards as well as changes in economic conditions or other relevant factors. Management judgment is required at each point in the measurement process. Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Upon adoption of CECL, management revised the manner in which loans were pooled for similar risk characteristics. Management developed portfolio segments for estimating loss based on type of borrower and collateral as follows: Commercial Loans Commercial Real Estate Loans Consumer Loans Residential Loans Further details related to loan portfolio segments is included in Note 4 Loans. Historical credit loss experience for both Arrow and segment-specific peers provides the basis for the estimation of expected credit losses. Arrow utilized regression analyses of peer data, of which Arrow is included, where observed credit losses and selected economic factors were utilized to determine suitable loss drivers for modeling lifetime probability of default (PD) rates. Arrow uses the discounted cash flow (DCF) method to estimate expected credit losses for the commercial, commercial real estate, and residential segments. For each of these loan segments, Arrow generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, PD, and segment-specific loss given default (LGD) risk factors. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data and adjusted, if necessary, based on the reasonable and supportable forecast of economic conditions. For the loan segments utilizing the DCF method, (commercial, commercial real estate, and residential) management utilizes externally developed economic forecast of the following economic factors as loss drivers: national unemployment, gross domestic product and home price index (HPI). The economic forecast is applied over a reasonable and supportable forecast period. Arrow utilizes a six quarter reasonable and supportable forecast period with an eight quarter reversion to the historic mean on a straight-line basis. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (NPV). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring (TDR) will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by Arrow. Arrow uses the vintage analysis method to estimate expected credit losses for the consumer loan segment. The vintage method was selected since the loans within the consumer loan segment are homogeneous, not just by risk characteristic, but by loan structure. Under the vintage analysis method, a loss rate is calculated based on the quarterly net charge-offs to the outstanding loan balance for each vintage year over the lookback period. Once this periodic loss rate is calculated for each quarter in the lookback period, the periodic rates are averaged into the loss rate. The loss rate is then applied to the outstanding loan balances based on the loan's vintage year. Arrow maintains, over the life of the loan, the loss curve by vintage year. If estimated losses computed by the vintage method need to be adjusted based on current conditions and the reasonable and supportable economic forecast, these adjustments would be incorporated over a six quarter reasonable and supportable forecast period, reverting to historical losses using a straight-line method over an eight quarter period. Based on current conditions and the reasonable and supportable economic forecast, no adjustment to the loss rate for each vintage is currently required. The vintage and DCF models also consider the need to qualitatively adjust expected loss estimates for information not already captured in the quantitative loss estimation process. Qualitative considerations include limitations inherent in the quantitative model; trends experienced in nonperforming and delinquent loans; changes in value of underlying collateral; changes in lending policies and procedures; nature and composition of loans; portfolio concentrations that may affect loss experience across one or more components or the portfolio; the experience, ability and depth of lending management and staff; Arrow's credit review system; and the effect of external factors such as competition, legal and regulatory requirements. These qualitative factor adjustments may increase or decrease Arrow's estimate of expected credit losses so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date. All loans not included in the vintage analysis method that exceed $250,000 which are on nonaccrual, are evaluated on an individual basis. For collateral dependent financial assets where Arrow has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and Arrow expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, Arrow has elected a practical expedient to measure the allowance for credit loss as the difference between the fair value of the collateral less cost to sell, and the amortized cost basis of the asset as of the measurement date. In the event where the repayment of a collateral dependent financial asset is expected to be provided substantially through the operating of the collateral, Arrow will use fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the allowance for credit losses. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Except as set forth below, a loan that has been modified or renewed is considered a TDR when two conditions are met: • The borrower is experiencing financial difficulty, and • Concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. Arrow's allowance for credit losses reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. Arrow has determined that a TDR is reasonably expected no later than the point it is determined that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession to avoid a default. Reasonably expected TDRs and executed non-performing TDRs are evaluated individually to determine the required allowance for credit losses. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in Arrow's existing pools based on the underlying risk characteristics of the loan to measure the allowance for credit losses. Estimated Credit Losses on Off-Balance Sheet Credit Exposures Recognized as Other Liabilities - Arrow estimates expected credit losses over the contractual period in which Arrow has exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Arrow. The allowance for credit losses on off-balance sheet credit exposures recognized in other liabilities, is adjusted as an expense in other noninterest expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. Estimating credit losses on unfunded commitments requires the Bank to consider the following categories of off-balance sheet credit exposure: unfunded commitments to extend credit, unfunded lines of credit, and standby letters of credit. Each of these unfunded commitments is then analyzed for a probability of funding to calculate a probable funding amount. The life of loan loss factor by related portfolio segment from the loan allowance for credit loss calculation is then applied to the probable funding amount to calculate the estimated credit losses on off-balance sheet credit exposures recognized as other liabilities. Accrued Interest Receivable - Upon adoption of CECL on January 1, 2021, Arrow made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within the other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued its policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due and therefore the amount of such write offs are immaterial. Historically, Arrow has not experienced uncollectible accrued interest receivable on investment securities. Allowance for Credit Losses – Held-to-Maturity (HTM) Debt Securities - Arrow's HTM debt securities are also required to utilize the CECL approach to estimate expected credit losses. Management measures expected credit losses on HTM debt securities on a collective basis by major security types that share similar risk characteristics, such as financial asset type and collateral type adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: U.S. government agency or U.S. government sponsored mortgage-backed and collateralized mortgage obligations securities, and state and municipal debt securities. The mortgage-backed and collateralized mortgage obligations HTM securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. Therefore, Arrow did not record a credit loss for these securities. State and municipal bonds carry an investment grade from an accredited ratings agency, primarily with an investment grade rating. In addition, Arrow has a limited amount of New York state local municipal bonds that are not rated. The estimate of expected credit losses on the HTM portfolio is based on the expected cash flows of each individual CUSIP over its contractual life and utilized a municipal loss forecast model for determining PD and LGD rates. Management may exercise discretion to make adjustments based on environmental factors. A calculated expected credit loss for individual securities was determined using the PD and LGD rates. Arrow determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded. Allowance for Credit Losses – Available-for-Sale (AFS) Debt Securities - The impairment model for AFS debt securities differs from the CECL approach utilized by HTM debt securities since AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows are estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Investments in Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock are required for membership in those organizations and are carried at cost since there is no market value available. The FHLB New York continues to pay dividends and repurchase stock. As such, the Company has not recognized any impairment on its holdings of Federal Reserve Bank and FHLB stock. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table is the schedule of Cash and Cash Equivalents at September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 December 31, 2021 September 30, 2021 Cash and Due From Banks $ 44,872 $ 26,978 $ 49,430 Interest-Bearing Deposits at Banks 328,557 430,718 548,936 Total Cash and Cash Equivalents $ 373,429 457,696 598,366 |
Restrictions on Cash and Cash Equivalents | The following table is the schedule of Cash and Cash Equivalents at September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 December 31, 2021 September 30, 2021 Cash and Due From Banks $ 44,872 $ 26,978 $ 49,430 Interest-Bearing Deposits at Banks 328,557 430,718 548,936 Total Cash and Cash Equivalents $ 373,429 457,696 598,366 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-For-Sale | The following table is the schedule of Available-For-Sale Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total September 30, 2022 Available-For-Sale Securities, $ 180,000 $ 340 $ 465,485 $ 1,000 $ 646,825 Gross Unrealized Gains — — 3 — 3 Gross Unrealized Losses (16,035) — (55,539) (200) (71,774) Available-For-Sale Securities, 163,965 340 409,949 800 575,054 Available-For-Sale Securities, 414,929 Maturities of Debt Securities, Within One Year $ 5,000 $ 20 $ 817 $ — $ 5,837 From 1 - 5 Years 175,000 — 254,104 — 429,104 From 5 - 10 Years — 320 210,564 1,000 211,884 Over 10 Years — — — — — Maturities of Debt Securities, Within One Year $ 5,000 $ 20 $ 795 $ — $ 5,815 From 1 - 5 Years 158,965 — 232,760 — 391,725 From 5 - 10 Years — 320 176,394 800 177,514 Over 10 Years — — — — — Securities in a Continuous Less than 12 Months $ 71,419 $ — $ 274,491 $ — $ 345,910 12 Months or Longer 92,545 — 135,329 800 228,674 Total $ 163,964 $ — $ 409,820 $ 800 $ 574,584 Number of Securities in a 24 — 156 1 181 Unrealized Losses on Less than 12 Months $ 3,581 $ — $ 30,521 $ — $ 34,102 12 Months or Longer 12,454 — 25,018 200 37,672 Total $ 16,035 $ — $ 55,539 $ 200 $ 71,774 Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total Disaggregated Details: US Treasury Obligations, $ — US Treasury Obligations, — US Agency Obligations, $ 180,000 US Agency Obligations, 163,965 US Government Agency $ 8,243 US Government Agency 7,842 Government Sponsored Entity 457,242 Government Sponsored Entity 402,107 December 31, 2021 Available-For-Sale Securities, $ 110,000 $ 400 $ 448,742 $ 1,000 $ 560,142 Gross Unrealized Gains 63 — 3,617 — 3,680 Gross Unrealized Losses (1,698) — (2,608) (200) (4,506) Available-For-Sale Securities, 108,365 400 449,751 800 559,316 Available-For-Sale Securities, 298,106 Securities in a Continuous Less than 12 Months $ 74,088 $ — $ 263,292 $ — $ 337,380 12 Months or Longer 29,214 — — 800 30,014 Total $ 103,302 $ — $ 263,292 $ 800 $ 367,394 Number of Securities in a 14 — 39 1 54 Unrealized Losses on Less than 12 Months $ 912 $ — $ 2,608 $ — $ 3,520 12 Months or Longer 786 — — 200 986 Total $ 1,698 $ — $ 2,608 $ 200 $ 4,506 Disaggregated Details: US Agency Obligations, $ 110,000 US Agency Obligations, 108,365 US Government Agency $ 9,386 US Government Agency 9,371 Government Sponsored Entity 439,356 Government Sponsored Entity 440,380 Available-For-Sale Securities U.S. Government & Agency State and Mortgage- Corporate Total September 30, 2021 Available-For-Sale Securities, $ 110,001 $ 400 $ 373,042 $ 1,000 $ 484,443 Gross Unrealized Gains 96 — 5,225 — 5,321 Gross Unrealized Losses (792) — (1,872) (200) (2,864) Available-For-Sale Securities, 109,305 400 376,395 800 486,900 Available-For-Sale Securities, 361,014 Securities in a Continuous Less than 12 Months $ 74,695 $ — $ 190,532 $ — $ 265,227 12 Months or Longer 29,513 — — 800 30,313 Total $ 104,208 $ — $ 190,532 $ 800 $ 295,540 Number of Securities in a 14 — 27 1 42 Unrealized Losses on Securities Less than 12 Months $ 305 $ — $ 1,872 $ — $ 2,177 12 Months or Longer 487 — — 200 687 Total $ 792 $ — $ 1,872 $ 200 $ 2,864 Disaggregated Details: US Agency Obligations, $ 110,001 US Agency Obligations, 109,305 US Government Agency $ 10,119 US Government Agency 10,165 Government Sponsored Entity 362,923 Government Sponsored Entity 366,230 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Held-To-Maturity Securities State and Mortgage- Total September 30, 2022 Held-To-Maturity Securities, $ 169,619 $ 12,559 $ 182,178 Gross Unrealized Gains 1 — 1 Gross Unrealized Losses (5,771) (608) (6,379) Held-To-Maturity Securities, 163,849 11,951 175,800 Held-To-Maturity Securities, 153,364 Held-To-Maturity Securities State and Mortgage- Total Maturities of Debt Securities, Within One Year $ 50,423 $ — $ 50,423 From 1 - 5 Years 115,113 12,559 127,672 From 5 - 10 Years 4,044 — 4,044 Over 10 Years 39 — 39 Maturities of Debt Securities, Within One Year $ 50,058 $ — $ 50,058 From 1 - 5 Years 109,945 11,951 121,896 From 5 - 10 Years 3,807 — 3,807 Over 10 Years 39 — 39 Securities in a Continuous Less than 12 Months $ 141,132 $ 11,951 $ 153,083 12 Months or Longer — — — Total $ 141,132 $ 11,951 $ 153,083 Number of Securities in a 419 16 435 Unrealized Losses on Securities Less than 12 Months $ 5,771 $ 608 $ 6,379 12 Months or Longer — — — Total $ 5,771 $ 608 $ 6,379 Disaggregated Details: US Government Agency $ 4,115 US Government Agency 3,924 Government Sponsored Entity 8,444 Government Sponsored Entity 8,027 Held-To-Maturity Securities State and Mortgage- Total December 31, 2021 Held-To-Maturity Securities, $ 180,195 $ 16,371 $ 196,566 Gross Unrealized Gains 4,179 547 4,726 Gross Unrealized Losses — — — Held-To-Maturity Securities, 184,374 16,918 201,292 Held-To-Maturity Securities, 175,218 Securities in a Continuous Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Number of Securities in a — — — Unrealized Losses on Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Disaggregated Details: US Government Agency $ 5,518 US Government Agency 5,647 Government Sponsored Entity 10,853 Government Sponsored Entity 11,271 Held-To-Maturity Securities State and Mortgage- Total September 30, 2021 Held-To-Maturity Securities, $ 179,952 $ 18,385 $ 198,337 Gross Unrealized Gains 4,834 765 5,599 Gross Unrealized Losses — — — Held-To-Maturity Securities, 184,786 19,150 203,936 Held-To-Maturity Securities, 192,929 Securities in a Continuous Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — Number of Securities in a — — — Unrealized Losses on Less than 12 Months $ — $ — $ — 12 Months or Longer — — — Total $ — $ — $ — September 30, 2021 Disaggregated Details: US Government Agency $ 6,302 US Government Agency 6,506 Government Sponsored Entity 12,083 Government Sponsored Entity 12,644 |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is the schedule of Equity Securities at September 30, 2022, December 31, 2021 and September 30, 2021: Equity Securities September 30, 2022 December 31, 2021 September 30, 2021 Equity Securities, at Fair Value $2,126 $1,747 $1,886 |
Unrealized Gain (Loss) on Investments | The following is a summary of realized and unrealized gains recognized in net income on equity securities during the three and nine month periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Net Gain on Equity Securities $ 95 $ (106) $ 379 $ 250 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 $ 95 $ (106) $ 379 $ 250 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following two tables present loan balances outstanding as of September 30, 2022 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. Loans held-for-sale of $483, $1,154 and $2,169 as of September 30, 2022, December 31, 2021 and September 30, 2021, 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 September 30, 2022 Loans Past Due 30-59 Days $ 86 $ — $ 8,870 $ 393 $ 9,349 Loans Past Due 60-89 Days 80 — 4,397 1,266 5,743 Loans Past Due 90 or more Days — 235 1,708 3,487 5,430 Total Loans Past Due 166 235 14,975 5,146 20,522 Current Loans 138,807 678,982 1,040,610 1,045,873 2,904,272 Total Loans $ 138,973 $ 679,217 $ 1,055,585 $ 1,051,019 $ 2,924,794 December 31, 2021 Loans Past Due 30-59 Days $ 202 $ — $ 6,713 $ 107 $ 7,022 Loans Past Due 60-89 Days 3 — 2,709 2,557 5,269 Loans Past Due 90 or more Days 157 1,180 1,564 1,981 4,882 Total Loans Past Due 362 1,180 10,986 4,645 17,173 Current Loans 172,156 627,749 909,570 941,293 2,650,768 Total Loans $ 172,518 $ 628,929 $ 920,556 $ 945,938 $ 2,667,941 September 30, 2021 Loans Past Due 30-59 Days $ 729 $ — $ 4,809 $ 368 $ 5,906 Loans Past Due 60-89 Days 63 — 2,543 1,295 3,901 Loans Past Due 90 or more Days 75 1,641 1,010 1,951 4,677 Total Loans Past Due 867 1,641 8,362 3,614 14,484 Current Loans 187,324 613,440 912,827 926,676 2,640,267 Total Loans $ 188,191 $ 615,081 $ 921,189 $ 930,290 $ 2,654,751 Schedule of Non Accrual Loans by Category Commercial September 30, 2022 Commercial Real Estate Consumer Residential Total Loans 90 or More Days Past Due $ — $ — $ — $ 514 $ 514 Nonaccrual Loans 9 3,401 1,708 3,694 8,812 Nonaccrual With No Allowance for Credit Loss 9 3,401 1,708 3,694 8,812 Interest Income on Nonaccrual Loans — — — 12 12 December 31, 2021 Loans 90 or More Days Past Due $ 157 $ — $ — $ 666 $ 823 Nonaccrual Loans 34 7,243 1,697 1,790 10,764 September 30, 2021 Loans 90 or More Days Past Due $ — $ — $ — $ 555 $ 555 Nonaccrual Loans 91 7,766 1,101 1,765 10,723 |
Allowance for Credit Losses on Financing Receivables | The following table details activity in the allowance for credit losses on loans for the three and nine months ended September 30, 2022 and September 30, 2021: Allowance for Credit Losses Commercial Commercial Real Estate Consumer Residential Total June 30, 2022 $ 2,465 $ 13,936 $ 2,358 $ 9,331 $ 28,090 Charge-offs (44) — (1,103) — (1,147) Recoveries — — 574 — 574 Provision (416) 930 692 509 1,715 September 30, 2022 $ 2,005 $ 14,866 $ 2,521 $ 9,840 $ 29,232 December 31, 2021 $ 2,298 $ 13,136 $ 2,402 $ 9,445 $ 27,281 Charge-offs $ (48) $ — $ (2,805) $ (30) $ (2,883) Recoveries $ 26 $ — $ 1,419 $ — $ 1,445 Provision $ (271) $ 1,730 $ 1,505 $ 425 $ 3,389 September 30, 2022 $ 2,005 $ 14,866 $ 2,521 $ 9,840 $ 29,232 June 30, 2021 $ 2,241 $ 13,606 $ 2,443 $ 8,720 $ 27,010 Charge-offs (17) — (427) — $ (444) Recoveries — — 291 — $ 291 Provision 200 65 (19) (147) $ 99 September 30, 2021 $ 2,424 $ 13,671 $ 2,288 $ 8,573 $ 26,956 Balance as of January 1, 2021 as adjusted for ASU 2016-13 $ 4,257 $ 12,054 $ 2,179 $ 9,442 $ 27,932 Charge-offs (37) — (1,480) (3) (1,520) Recoveries — — 830 — 830 Provision (1,796) 1,617 759 (866) (286) September 30, 2021 $ 2,424 $ 13,671 $ 2,288 $ 8,573 $ 26,956 The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 3,166 3,166 Consumer — — — Residential 1,494 — 1,494 Total $ 1,494 $ 3,166 $ 4,660 December 31, 2021 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 6,732 6,732 Consumer — — — Residential 673 — 673 Total $ 673 $ 6,732 $ 7,405 September 30, 2021 Collateral Type -Residential Real Estate Collateral Type - Commercial Real Estate Total Loans Commercial $ — $ — $ — Commercial Real Estate — 7,254 7,254 Consumer — — — Residential 676 — 676 Total $ 676 $ 7,254 $ 7,930 Allowance for Credit Losses - Collectively and Individually Evaluated Commercial Commercial Real Estate Consumer Residential Total September 30, 2022 Ending Loan Balance - Collectively Evaluated $ 138,973 $ 676,051 $ 1,055,585 $ 1,049,525 $ 2,920,134 Allowance for Credit Losses - Loans Collectively Evaluated 2,005 14,866 2,521 9,840 29,232 Ending Loan Balance - Individually Evaluated — 3,166 — 1,494 4,660 Allowance for Credit Losses - Loans Individually Evaluated — — — — — December 31, 2021 Ending Loan Balance - Collectively Evaluated $ 172,518 $ 622,197 $ 920,556 $ 945,265 $ 2,660,536 Allowance for Credit Losses - Loans Collectively Evaluated 2,298 12,537 2,402 9,445 $ 26,682 Ending Loan Balance - Individually Evaluated — 6,732 — 673 7,405 Allowance for Credit Losses - Loans Individually Evaluated — 599 — — 599 September 30, 2021 Ending Loan Balance - Collectively Evaluated $ 188,191 $ 607,827 $ 921,189 $ 929,614 $ 2,646,821 Allowance for Credit Losses - Loans Collectively Evaluated 2,424 13,055 2,288 8,573 26,340 Ending Loan Balance - Individually Evaluated — 7,254 — 676 7,930 Allowance for Credit Losses - Loans Individually Evaluated — 616 — — 616 |
Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators by total loans amortized cost basis by origination year as of September 30, 2022, December 31, 2021 and September 30, 2021: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total September 30, 2022 2022 2021 2020 2019 2018 Prior Commercial: Risk rating Satisfactory $ 34,589 $ 31,762 $ 26,654 $ 7,554 $ 9,605 $ 11,194 $ 8,008 $ — $ 129,366 Special mention — — — — — 35 35 — 70 Substandard — 3,318 479 445 — 37 5,258 — 9,537 Doubtful — — — — — — — — — Total Commercial Loans $ 34,589 $ 35,080 $ 27,133 $ 7,999 $ 9,605 $ 11,266 $ 13,301 $ — $ 138,973 Commercial Real Estate: Risk rating Satisfactory $ 106,549 $ 136,306 $ 247,780 $ 40,959 $ 30,667 $ 64,934 $ 3,052 $ — $ 630,247 Special mention 9,801 — 2,973 — 4,315 1,425 — — 18,514 Substandard 9,531 4,723 11,352 1,133 93 3,403 221 — 30,456 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 125,881 $ 141,029 $ 262,105 $ 42,092 $ 35,075 $ 69,762 $ 3,273 $ — $ 679,217 Consumer: Risk rating Performing $ 406,206 $ 309,006 $ 172,974 $ 101,458 $ 47,874 $ 15,933 $ 483 $ — $ 1,053,934 Nonperforming 268 583 351 304 58 87 — — 1,651 Total Consumer Loans $ 406,474 $ 309,589 $ 173,325 $ 101,762 $ 47,932 $ 16,020 $ 483 $ — $ 1,055,585 Residential: Risk rating Performing $ 163,702 $ 209,408 $ 173,435 $ 84,370 $ 61,907 $ 232,021 $ 122,191 $ — $ 1,047,034 Nonperforming — 257 939 28 318 2,268 175 — 3,985 Total Residential Loans $ 163,702 $ 209,665 $ 174,374 $ 84,398 $ 62,225 $ 234,289 $ 122,366 $ — $ 1,051,019 Total Loans $ 730,646 $ 695,363 $ 636,937 $ 236,251 $ 154,837 $ 331,337 $ 139,423 $ — $ 2,924,794 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total December 31, 2021 2021 2020 2019 2018 2017 Prior Commercial: Risk rating Satisfactory $ 75,615 $ 35,522 $ 11,591 $ 11,661 $ 7,792 $ 3,442 $ 12,783 $ — $ 158,406 Special mention — — 3 — — 5,899 — — 5,902 Substandard 3,541 3,791 589 — 25 12 252 — 8,210 Doubtful — — — — — — — — — Total Commercial Loans $ 79,156 $ 39,313 $ 12,183 $ 11,661 $ 7,817 $ 9,353 $ 13,035 $ — $ 172,518 Commercial Real Estate: Risk rating Satisfactory $ 140,636 $ 276,461 $ 42,369 $ 37,997 $ 22,155 $ 59,698 $ 1,923 $ — $ 581,239 Special mention — 7,893 1,204 — 137 1,906 — — 11,140 Substandard 7,248 16,405 3,910 96 — 8,867 24 — 36,550 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 147,884 $ 300,759 $ 47,483 $ 38,093 $ 22,292 $ 70,471 $ 1,947 $ — $ 628,929 Consumer: Risk rating Performing $ 402,558 $ 239,492 $ 154,517 $ 82,673 $ 29,587 $ 9,578 $ 455 $ — $ 918,860 Nonperforming 388 399 502 151 160 96 — — 1,696 Total Consumer Loans $ 402,946 $ 239,891 $ 155,019 $ 82,824 $ 29,747 $ 9,674 $ 455 $ — $ 920,556 Residential: Risk rating Performing $ 187,708 $ 146,113 $ 93,547 $ 88,505 $ 93,524 $ 215,679 $ 118,595 $ — $ 943,671 Nonperforming — 133 — 27 162 1,907 38 — 2,267 Total Residential Loans $ 187,708 $ 146,246 $ 93,547 $ 88,532 $ 93,686 $ 217,586 $ 118,633 $ — $ 945,938 Total Loans $ 817,694 $ 726,209 $ 308,232 $ 221,110 $ 153,542 $ 307,084 $ 134,070 $ — $ 2,667,941 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loan Converted to Term Total September 30, 2021 2021 2020 2019 2018 2017 Prior Commercial: Risk rating Satisfactory $ 81,914 $ 38,970 $ 13,966 $ 12,860 $ 8,511 $ 3,917 $ 12,796 $ — $ 172,934 Special mention — 652 51 — — 5,499 — — 6,202 Substandard 3,575 4,496 636 — 31 295 22 — 9,055 Doubtful — — — — — — — — — Total Commercial Loans $ 85,489 $ 44,118 $ 14,653 $ 12,860 $ 8,542 $ 9,711 $ 12,818 $ — $ 188,191 Commercial Real Estate: Risk rating Satisfactory $ 96,419 $ 290,785 $ 47,605 $ 41,215 $ 22,661 $ 62,203 $ 2,935 $ — $ 563,823 Special mention — 16,829 1,227 — 139 1,976 — — 20,171 Substandard 7,248 10,359 3,950 146 — 9,384 — — 31,087 Doubtful — — — — — — — — — Total Commercial Real Estate Loans $ 103,667 $ 317,973 $ 52,782 $ 41,361 $ 22,800 $ 73,563 $ 2,935 $ — $ 615,081 Consumer: Risk rating Performing $ 330,952 $ 264,963 $ 175,448 $ 97,563 $ 37,112 $ 13,572 $ 477 $ — $ 920,087 Nonperforming 203 319 332 160 30 58 — — 1,102 Total Consumer Loans $ 331,155 $ 265,282 $ 175,780 $ 97,723 $ 37,142 $ 13,630 $ 477 $ — $ 921,189 Residential: Risk rating Performing $ 124,536 $ 154,071 $ 101,678 $ 94,621 $ 97,457 $ 231,375 $ 124,231 $ — $ 927,969 Nonperforming — 336 — 155 213 1,586 31 — 2,321 Total Residential Loans $ 124,536 $ 154,407 $ 101,678 $ 94,776 $ 97,670 $ 232,961 $ 124,262 $ — $ 930,290 Total Loans $ 644,847 $ 781,780 $ 344,893 $ 246,720 $ 166,154 $ 329,865 $ 140,492 $ — $ 2,654,751 |
Troubled Debt Restructurings on Financing Receivables | The following table presents information on loans modified in trouble debt restructurings during the periods indicated: Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: September 30, 2022 Number of Loans — — — — — Pre-Modification Outstanding Recorded Investment $ — $ — $ — $ — $ — Post-Modification Outstanding Recorded Investment — — — — — Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2021 Number of Loans — — — — — Pre-Modification Outstanding Recorded Investment $ — $ — $ — $ — $ — Post-Modification Outstanding Recorded Investment — — — — — Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of September 30, 2022, December 31, 2021 and September 30, 2021: Commitments to Extend Credit and Letters of Credit September 30, 2022 December 31, 2021 September 30, 2021 Notional Amount: Commitments to Extend Credit $ 440,167 $ 402,280 $ 431,452 Standby Letters of Credit 3,445 3,223 3,392 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit — 24 21 |
Comprehensive (Loss) Income (Ta
Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income | The following table presents the components of other comprehensive (loss) income for the three and nine month periods ended September 30, 2022 and 2021: Schedule of Comprehensive (Loss) Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax Benefit Net-of-Tax Before-Tax Benefit Net-of-Tax Amount (Expense) Amount Amount (Expense) Amount 2022 Net Unrealized Securities Holding Loss on Securities Available-for-Sale Arising During the Period $ (27,945) $ 7,144 $ (20,801) $ (70,945) $ 18,137 $ (52,808) Net Unrealized Gain on Cash Flow Swap 1,046 (268) 778 3,737 (956) 2,781 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense 75 (20) 55 57 (15) 42 Amortization of Net Retirement Plan Actuarial Loss 564 (144) 420 592 (151) 441 Amortization of Net Retirement Plan Prior Service Cost 57 (15) 42 171 (44) 127 Other Comprehensive Loss $ (26,203) $ 6,697 $ (19,506) $ (66,388) $ 16,971 $ (49,417) 2021 Net Unrealized Securities Holding Loss on Securities Available-for-Sale Arising During the Period $ (1,719) $ 440 $ (1,279) $ (5,333) $ 1,364 $ (3,969) Net Unrealized Gain on Cash Flow Swap 245 (62) 183 1,281 (327) 954 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense (34) 9 (25) (92) 24 (68) Amortization of Net Retirement Plan Actuarial Loss 22 (5) 17 68 (17) 51 Amortization of Net Retirement Plan Prior Service Cost 59 (16) 43 175 (46) 129 Other Comprehensive Loss $ (1,427) $ 366 $ (1,061) $ (3,901) $ 998 $ (2,903) |
Changes in Accumulated Other Comprehensive Income By Component | The following table presents the changes in accumulated other comprehensive (loss) income by component: Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) Unrealized (Loss) and Gain on Available-for-Sale Securities Unrealized Gain on Cash Flow Swap Defined Benefit Plan Items Total Net Actuarial Loss Net Prior Service Cost For the Quarter-To-Date periods ended: June 30, 2022 $ (32,621) $ 3,310 $ 660 $ (913) $ (29,564) Other comprehensive income or loss before reclassifications (20,801) 778 — — (20,023) Amounts reclassified from accumulated other comprehensive income or loss — 55 420 42 517 Net current-period other comprehensive income or loss (20,801) 833 420 42 (19,506) September 30, 2022 $ (53,422) $ 4,143 $ 1,080 $ (871) $ (49,070) June 30, 2021 $ 3,109 $ 1,213 $ (5,895) $ (1,085) $ (2,658) Other comprehensive income or loss before reclassifications (1,279) 183 — — (1,096) Amounts reclassified from accumulated other comprehensive income or loss — (25) 17 43 35 Net current-period other comprehensive income or loss (1,279) 158 17 43 (1,061) September 30, 2021 $ 1,830 $ 1,371 $ (5,878) $ (1,042) $ (3,719) For the Year-To-Date periods ended: December 31, 2021 $ (614) $ 1,320 $ 639 $ (998) $ 347 Other comprehensive income or loss before reclassifications (52,808) 2,781 — — (50,027) Amounts reclassified from accumulated other comprehensive income or loss — 42 441 127 610 Net current-period other comprehensive income or loss (52,808) 2,823 441 127 (49,417) September 30, 2022 $ (53,422) $ 4,143 $ 1,080 $ (871) $ (49,070) December 31, 2020 $ 5,799 $ 485 $ (5,929) $ (1,171) $ (816) Other comprehensive income or loss before reclassifications (3,969) 954 — — (3,015) Amounts reclassified from accumulated other comprehensive income — (68) 51 129 112 Net current-period other comprehensive income or loss (3,969) 886 51 129 (2,903) September 30, 2021 $ 1,830 $ 1,371 $ (5,878) $ (1,042) $ (3,719) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income or loss: Reclassifications Out of Accumulated Other Comprehensive Income or Loss Details about Accumulated Other Comprehensive Income or Loss Components Amounts Reclassified from Accumulated Other Comprehensive Income or Loss Affected Line Item in the Statement Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2022 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ (75) Interest expense Amortization of defined benefit pension items: Prior-service costs (57) (1) Salaries and Employee Benefits Actuarial loss (564) (1) Salaries and Employee Benefits (696) Total before Tax 179 Provision for Income Taxes Total reclassifications for the period $ (517) Net of Tax September 30, 2021 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ 34 Interest expense Amortization of defined benefit pension items: Prior-service costs $ (59) (1) Salaries and Employee Benefits Actuarial loss (22) (1) Salaries and Employee Benefits (47) Total before Tax 12 Provision for Income Taxes Total reclassifications for the period $ (35) Net of Tax For the Year-to-date periods ended: September 30, 2022 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense $ (57) Interest expense Amortization of defined benefit pension items: Prior-service costs (171) (1) Salaries and Employee Benefits Actuarial loss (592) (1) Salaries and Employee Benefits (820) Total before Tax 210 Provision for Income Taxes Total reclassifications for the period $ (610) Net of Tax September 30, 2021 Reclassification of Net Unrealized Gain on Cash Flow Hedge Agreements to Interest Expense 92 Interest expense Amortization of defined benefit pension items: Prior-service costs $ (175) (1) Salaries and Employee Benefits Actuarial loss (68) (1) Salaries and Employee Benefits (151) Total before Tax 39 Provision for Income Taxes Total reclassifications for the period $ (112) Net of Tax (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes information about stock option activity for the year to date period ended September 30, 2022: Shares Weighted Average Exercise Price Outstanding at January 1, 2022 278,899 $ 27.62 Granted 58,710 34.79 Exercised (17,803) 20.56 Forfeited (18,844) 30.71 Outstanding at September 30, 2022 300,962 29.24 Vested at Period-End 178,250 27.56 Expected to Vest 122,712 31.68 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 7.43 Fair Value Assumptions: Dividend Yield 2.90 % Expected Volatility 27.15 % Risk Free Interest Rate 1.69 % Expected Lives (in years) 8.56 |
Schedule of Stock Options Roll Forward | The following table summarizes information about stock option activity for the year to date period ended September 30, 2022: Shares Weighted Average Exercise Price Outstanding at January 1, 2022 278,899 $ 27.62 Granted 58,710 34.79 Exercised (17,803) 20.56 Forfeited (18,844) 30.71 Outstanding at September 30, 2022 300,962 29.24 Vested at Period-End 178,250 27.56 Expected to Vest 122,712 31.68 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 7.43 Fair Value Assumptions: Dividend Yield 2.90 % Expected Volatility 27.15 % Risk Free Interest Rate 1.69 % Expected Lives (in years) 8.56 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed related to stock options for the three and nine month periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Amount expensed $ 79 $ 71 $ 233 $ 212 The following table presents information on the amounts expensed related to restricted stock units for the periods ended September 30, 2022 and 2021: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Amount expensed $ 35 $ 32 $ 105 $ 98 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes information about restricted stock unit activity for the periods ended September 30, 2022 and 2021: Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 13,599 $ 29.27 Granted 4,312 34.79 Vested (4,391) 28.17 Non-vested at September 30, 2022 13,520 31.38 Non-vested at January 1, 2021 12,373 29.81 Granted 5,026 27.71 Vested (3,800) 28.95 Non-vested at September 30, 2021 13,599 29.27 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables provide the components of net periodic benefit costs for the three and nine-month periods ended September 30, 2022 and 2021: Employees' Select Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Cost For the Three Months Ended September 30, 2022: Service Cost 1 $ 469 $ 208 $ 23 Interest Cost 2 360 57 61 Expected Return on Plan Assets 2 (1,078) — — Amortization of Prior Service Cost 2 19 11 27 Amortization of Net Loss (Gain) 2 550 53 (39) Net Periodic Cost $ 320 $ 329 $ 72 Plan Contributions During the Period $ — $ 116 $ 43 For the Three Months Ended September 30, 2021: Service Cost 1 $ 484 $ 146 $ 27 Interest Cost 2 340 48 62 Expected Return on Plan Assets 2 (945) — — Amortization of Prior Service Cost 2 20 12 27 Amortization of Net Loss (Gain) 2 — 44 (22) Net Periodic (Benefit) Cost $ (101) $ 250 $ 94 Plan Contributions During the Period $ — $ 118 $ 32 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2022: Service Cost 1 $ 1,408 $ 626 $ 68 Interest Cost 2 1,079 169 185 Expected Return on Plan Assets 2 (3,235) — — Amortization of Prior Service Cost 2 58 33 80 Amortization of Net Loss (Gain) 2 550 159 (117) Net Periodic (Benefit) Cost $ (140) $ 987 $ 216 Plan Contributions During the Period $ — $ 347 $ 131 Estimated Future Contributions in the Current Fiscal Year $ — $ 116 $ 43 For the Nine Months Ended September 30, 2021: Service Cost 1 $ 1,451 $ 437 $ 82 Interest Cost 2 1,023 143 186 Expected Return on Plan Assets 2 (2,835) — — Amortization of Prior Service Cost 2 59 36 80 Amortization of Net Loss (Gain) 2 — 134 (66) Net Periodic (Benefit) Cost $ (302) $ 750 $ 282 Plan Contributions During the Period $ — $ 354 $ 87 Footnotes: 1. Included in Salaries and Employee Benefits on the Consolidated Statements of Income 2. Included in Other Operating Expense on the Consolidated Statements of Income |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share (EPS) for periods ended September 30, 2022 and 2021. When applicable, share and per share amounts have been adjusted for the September 23, 2022, 3% stock dividend. Earnings Per Share Three Months Ended Year-to-Date Period Ended: September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Earnings Per Share - Basic: Net Income $ 12,163 $ 12,989 $ 36,712 $ 39,548 Weighted Average Shares - Basic 16,512 16,508 16,506 16,495 Earnings Per Share - Basic $ 0.74 $ 0.79 $ 2.22 $ 2.40 Earnings Per Share - Diluted: Net Income $ 12,163 $ 12,989 $ 36,712 $ 39,548 Weighted Average Shares - Basic 16,512 16,508 16,506 16,495 Dilutive Average Shares Attributable to Stock Options 46 60 47 59 Weighted Average Shares - Diluted 16,558 16,568 16,553 16,554 Earnings Per Share - Diluted $ 0.74 $ 0.78 $ 2.22 $ 2.39 |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2022 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 163,965 $ — $ 163,965 $ — State and Municipal Obligations 340 — 340 — Mortgage-Backed Securities 409,949 — 409,949 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 575,054 — 575,054 — Equity Securities 2,126 — 2,126 — Total Securities Measured on a Recurring Basis 577,180 — 577,180 — Derivatives, included in other assets 8,508 — 8,508 — Total Measured on a Recurring Basis $ 585,688 $ — $ 585,688 $ — Liabilities: Derivatives, included in other liabilities 8,508 — 8,508 — Total Measured on a Recurring Basis $ 8,508 $ — $ 8,508 $ — December 31, 2021 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 108,365 $ — $ 108,365 $ — State and Municipal Obligations 400 — 400 — Mortgage-Backed Securities 449,751 — 449,751 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 559,316 — 559,316 — Equity Securities 1,747 — 1,747 — Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Total Securities Measured on a Recurring Basis 561,063 — 561,063 — Derivatives, included in other liabilities 2,083 — 2,083 — Total Measured on a Recurring Basis $ 563,146 $ — $ 563,146 $ — Liabilities: Derivatives, included in other liabilities 2,083 — 2,083 — Total Measured on a Recurring Basis $ 2,083 $ — $ 2,083 $ — September 30, 2021 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 109,305 $ — $ 109,305 $ — State and Municipal Obligations 400 — 400 — Mortgage-Backed Securities 376,395 — 376,395 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 486,900 — 486,900 — Equity Securities 1,886 — 1,886 — Total Securities Measured on a Recurring Basis $ 488,786 $ — $ 488,786 $ — Derivatives, included in other assets 2,287 $ — 2,287 — Total Measured on a Recurring Basis $ 491,073 $ — $ 491,073 $ — Liabilities: Derivatives, included in other liabilities 2,287 — 2,287 — Total Measured on a Recurring Basis $ 2,287 $ — $ 2,287 $ — Fair Value Quoted Prices Significant Other Significant Unobservable Inputs Gains (Losses) Recognized in Earnings Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2022 Collateral Dependent Evaluated Loans $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net 604 — — 604 — December 31, 2021 Collateral Dependent Impaired Loans $ 2,457 $ — $ — $ 2,457 Other Real Estate Owned and Repossessed Assets, Net 126 — — 126 — September 30, 2021 Collateral Dependent Impaired Loans $ 2,456 $ — $ — $ 2,456 Other Real Estate Owned and Repossessed Assets, Net 351 — — 351 13 |
Fair Value, by Balance Sheet Grouping | The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 September 30, 2022 Cash and Cash Equivalents $ 373,429 $ 373,429 $ 373,429 $ — $ — Securities Available-for-Sale 575,054 575,054 — 575,054 — Securities Held-to-Maturity 182,178 175,800 — 175,800 — Equity Securities 2,126 2,126 — 2,126 — Federal Home Loan Bank and Federal 4,720 4,720 — 4,720 — Net Loans 2,895,562 2,714,587 — — 2,714,587 Accrued Interest Receivable 8,549 8,549 — 8,549 — Derivatives, included in other assets 8,508 8,508 8,508 Deposits 3,795,105 3,785,960 — 3,785,960 — Federal Home Loan Bank Term Advances 25,000 24,833 — 24,833 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 202 202 — 202 — Derivatives, included in other liabilities 8,508 8,508 — 8,508 — December 31, 2021 Cash and Cash Equivalents $ 457,696 $ 457,696 $ 457,696 $ — $ — Securities Available-for-Sale 559,316 559,316 — 559,316 — Securities Held-to-Maturity 196,566 201,292 — 201,292 — Equity Securities 1,747 1,747 — 1,747 Federal Home Loan Bank and Federal 5,380 5,380 — 5,380 — Net Loans 2,640,660 2,618,311 — — 2,618,311 Accrued Interest Receivable 7,384 7,384 — 7,384 — Derivatives, included in other assets 2,083 2,083 — 2,083 — Deposits 3,550,497 3,548,554 — 3,548,554 — Federal Home Loan Bank Term Advances 45,000 45,518 — 45,518 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 138 138 — 138 — Derivatives, included in other liabilities 2,083 2,083 — 2,083 — September 30, 2021 Cash and Cash Equivalents $ 598,366 $ 598,366 $ 598,366 $ — $ — Securities Available-for-Sale 486,900 486,900 — 486,900 — Securities Held-to-Maturity 198,337 203,936 — 203,936 — Equity Securities 1,886 1,886 — 1,886 Federal Home Loan Bank and Federal 5,380 5,380 — 5,380 — Net Loans 2,627,795 2,632,843 — — 2,632,843 Accrued Interest Receivable 7,899 7,899 — 7,899 — Derivatives, included in other assets 2,287 2,287 — 2,287 — Deposits 3,605,563 3,604,271 — 3,604,271 — Federal Funds Purchased and Securities 2,426 2,426 — 2,426 — Federal Home Loan Bank Term Advances 45,000 45,906 — 45,906 — Junior Subordinated Obligations Issued 20,000 20,000 — 20,000 — Accrued Interest Payable 137 137 — 137 — Derivatives, included in other liabilities 2,287 2,287 — 2,287 — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2022 and September 30, 2021: Nine Months Ended Finance Lease Amounts: Classification September 30, 2022 September 30, 2021 Right-of-Use Assets Premises and Equipment, Net $ 4,681 $ 4,859 Lease Liabilities Finance Leases 5,131 5,181 Operating Lease Amounts: Right-of-Use Assets Other Assets $ 5,889 $ 6,786 Lease Liabilities Other Liabilities 6,082 6,965 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 145 $ 146 Operating Outgoing Cash Flows From Operating Leases 1,041 571 Financing Outgoing Cash Flows From Finance Leases 38 36 Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities — — Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities — 2,126 Weighted-average Remaining Lease Term - Finance Leases (Yrs.) 27.50 28.46 Weighted-average Remaining Lease Term - Operating Leases (Yrs.) 11.36 11.76 Weighted-average Discount Rate—Finance Leases 3.75 % 3.75 % Weighted-average Discount Rate—Operating Leases 2.87 % 2.85 % Lease cost information for Arrow's leases is as follows: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Lease Cost: Finance Lease Cost: Reduction of Right-of-Use Assets $ 44 $ 44 $ 133 $ 133 Interest on Lease Liabilities 48 48 145 146 Operating Lease Cost 305 238 925 737 Short-term Lease Cost 9 15 32 28 Variable Lease Cost 86 69 253 203 Total Lease Cost $ 492 $ 414 $ 1,488 $ 1,247 |
Lessee, Operating Lease, Liability, Maturity | Future Lease Payments at September 30, 2022 are as follows: Operating Leases Financing Leases Twelve Months Ended: 9/30/2023 $ 1,077 $ 243 9/30/2024 723 247 9/30/2025 648 259 9/30/2026 590 268 9/30/2027 561 268 Thereafter 3,698 7,331 Total Undiscounted Cash Flows $ 7,297 $ 8,616 Less: Net Present Value Adjustment 1,215 3,485 Lease Liability $ 6,082 $ 5,131 |
Finance Lease, Liability, Maturity | Future Lease Payments at September 30, 2022 are as follows: Operating Leases Financing Leases Twelve Months Ended: 9/30/2023 $ 1,077 $ 243 9/30/2024 723 247 9/30/2025 648 259 9/30/2026 590 268 9/30/2027 561 268 Thereafter 3,698 7,331 Total Undiscounted Cash Flows $ 7,297 $ 8,616 Less: Net Present Value Adjustment 1,215 3,485 Lease Liability $ 6,082 $ 5,131 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of the interest rate swap agreements: Derivatives Not Designated as Hedging Instruments - Interest Rate Swap Agreements September 30, 2022 December 31, 2021 September 30, 2021 Fair value adjustment included in other assets $ 8,508 $ 2,083 $ 2,287 Fair value adjustment included in other liabilities 8,508 2,083 2,287 Notional amount 134,406 172,668 172,026 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income: Derivatives Designated as Hedging Instruments - Cash Flow Hedge Agreements Nine Months Ended Twelve Months Ended Nine Months Ended September 30, 2022 December 31, 2021 September 30, 2021 Amount of gain recognized in AOCI $ 3,737 $ 1,249 $ 1,281 Amount of (loss) gain reclassified from AOCI to interest expense (57) 126 92 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and Due From Banks | $ 44,872 | $ 26,978 | $ 49,430 | |
Interest-Bearing Deposits at Banks | 328,557 | 430,718 | 548,936 | |
Total Cash and Cash Equivalents | $ 373,429 | $ 457,696 | $ 598,366 | $ 380,991 |
Investment Securities - Availab
Investment Securities - Available for Sale (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | Sep. 30, 2021 USD ($) security |
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | $ 646,825 | $ 560,142 | $ 484,443 |
Gross Unrealized Gains | 3 | 3,680 | 5,321 |
Gross Unrealized Losses | (71,774) | (4,506) | (2,864) |
Available-for-Sale at Fair Value | 575,054 | 559,316 | 486,900 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 5,837 | ||
From 1 - 5 Years | 429,104 | ||
From 5 - 10 Years | 211,884 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 5,815 | ||
From 1 - 5 Years | 391,725 | ||
From 5 - 10 Years | 177,514 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 345,910 | 337,380 | 265,227 |
12 Months or Longer | 228,674 | 30,014 | 30,313 |
Total | $ 574,584 | $ 367,394 | $ 295,540 |
Number of Securities in a Continuous Loss Position | security | 181 | 54 | 42 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 34,102 | $ 3,520 | $ 2,177 |
12 Months or Longer | 37,672 | 986 | 687 |
Total | 71,774 | 4,506 | 2,864 |
Collateral Pledged | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, Pledged as Collateral, at Fair Value | 414,929 | 298,106 | 361,014 |
U.S. Government & Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 180,000 | 110,000 | 110,001 |
Gross Unrealized Gains | 0 | 63 | 96 |
Gross Unrealized Losses | (16,035) | (1,698) | (792) |
Available-for-Sale at Fair Value | 163,965 | 108,365 | 109,305 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 5,000 | ||
From 1 - 5 Years | 175,000 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 5,000 | ||
From 1 - 5 Years | 158,965 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 71,419 | 74,088 | 74,695 |
12 Months or Longer | 92,545 | 29,214 | 29,513 |
Total | $ 163,964 | $ 103,302 | $ 104,208 |
Number of Securities in a Continuous Loss Position | security | 24 | 14 | 14 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 3,581 | $ 912 | $ 305 |
12 Months or Longer | 12,454 | 786 | 487 |
Total | 16,035 | 1,698 | 792 |
U.S. Government & Agency Obligations | US Treasury Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 0 | ||
Available-for-Sale at Fair Value | 0 | ||
U.S. Government & Agency Obligations | Agency Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 180,000 | 110,000 | 110,001 |
Available-for-Sale at Fair Value | 163,965 | 108,365 | 109,305 |
State and Municipal Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 340 | 400 | 400 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Available-for-Sale at Fair Value | 340 | 400 | 400 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 20 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 320 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 20 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 320 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | security | 0 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Mortgage- Backed Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 465,485 | 448,742 | 373,042 |
Gross Unrealized Gains | 3 | 3,617 | 5,225 |
Gross Unrealized Losses | (55,539) | (2,608) | (1,872) |
Available-for-Sale at Fair Value | 409,949 | 449,751 | 376,395 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 817 | ||
From 1 - 5 Years | 254,104 | ||
From 5 - 10 Years | 210,564 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 795 | ||
From 1 - 5 Years | 232,760 | ||
From 5 - 10 Years | 176,394 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 274,491 | 263,292 | 190,532 |
12 Months or Longer | 135,329 | 0 | 0 |
Total | $ 409,820 | $ 263,292 | $ 190,532 |
Number of Securities in a Continuous Loss Position | security | 156 | 39 | 27 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 30,521 | $ 2,608 | $ 1,872 |
12 Months or Longer | 25,018 | 0 | 0 |
Total | 55,539 | 2,608 | 1,872 |
Mortgage- Backed Securities | US Government Agencies Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 8,243 | 9,386 | 10,119 |
Available-for-Sale at Fair Value | 7,842 | 9,371 | 10,165 |
Mortgage- Backed Securities | US Government-sponsored Enterprises Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 457,242 | 439,356 | 362,923 |
Available-for-Sale at Fair Value | 402,107 | 440,380 | 366,230 |
Corporate and Other Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 1,000 | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | (200) | (200) | (200) |
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 1,000 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 800 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 800 | 800 | 800 |
Total | $ 800 | $ 800 | $ 800 |
Number of Securities in a Continuous Loss Position | security | 1 | 1 | 1 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 200 | 200 | 200 |
Total | $ 200 | $ 200 | $ 200 |
Investment Securities - Held to
Investment Securities - Held to Maturity (Details) | 3 Months Ended | ||
Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | Sep. 30, 2021 USD ($) security | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities, available-for-sale, allowance for credit loss, excluding accrued interest | $ 0 | ||
Held-To-Maturity Securities, at Amortized Cost | 182,178,000 | $ 196,566,000 | $ 198,337,000 |
Gross Unrealized Gains | 1,000 | 4,726,000 | 5,599,000 |
Gross Unrealized Losses | (6,379,000) | 0 | 0 |
Held-To-Maturity Securities, at Fair Value | 175,800,000 | 201,292,000 | 203,936,000 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 50,423,000 | ||
From 1 - 5 Years | 127,672,000 | ||
From 5 - 10 Years | 4,044,000 | ||
Over 10 Years | 39,000 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 50,058,000 | ||
From 1 - 5 Years | 121,896,000 | ||
From 5 - 10 Years | 3,807,000 | ||
Over 10 Years | 39,000 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 153,083,000 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 153,083,000 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | security | 435 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 6,379,000 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 6,379,000 | 0 | 0 |
Debt securities, available-for-sale, excluding accrued interest, allowance for credit loss, not to sell before recovery, credit loss, previously recorded, expense (reversal) | 0 | ||
Debt securities, held-to-maturity, allowance for credit loss, excluding accrued interest | 0 | ||
Equity Securities | 2,126,000 | 1,747,000 | 1,886,000 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 169,619,000 | 180,195,000 | 179,952,000 |
Gross Unrealized Gains | 1,000 | 4,179,000 | 4,834,000 |
Gross Unrealized Losses | (5,771,000) | 0 | 0 |
Held-To-Maturity Securities, at Fair Value | 163,849,000 | 184,374,000 | 184,786,000 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 50,423,000 | ||
From 1 - 5 Years | 115,113,000 | ||
From 5 - 10 Years | 4,044,000 | ||
Over 10 Years | 39,000 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 50,058,000 | ||
From 1 - 5 Years | 109,945,000 | ||
From 5 - 10 Years | 3,807,000 | ||
Over 10 Years | 39,000 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 141,132,000 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 141,132,000 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | security | 419 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 5,771,000 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 5,771,000 | 0 | 0 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 12,559,000 | 16,371,000 | 18,385,000 |
Gross Unrealized Gains | 0 | 547,000 | 765,000 |
Gross Unrealized Losses | (608,000) | 0 | 0 |
Held-To-Maturity Securities, at Fair Value | 11,951,000 | 16,918,000 | 19,150,000 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 12,559,000 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 11,951,000 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 11,951,000 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 11,951,000 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | security | 16 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 608,000 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 608,000 | 0 | 0 |
Fair Value, Measurements, Recurring | |||
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Equity Securities | 2,126,000 | 1,747,000 | 1,886,000 |
Collateral Pledged | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value | 153,364,000 | 175,218,000 | 192,929,000 |
US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 4,115,000 | 5,518,000 | 6,302,000 |
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | 3,924,000 | 5,647,000 | 6,506,000 |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 8,444,000 | 10,853,000 | 12,083,000 |
US Government-sponsored Enterprises Debt Securities | Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | $ 8,027,000 | $ 11,271,000 | $ 12,644,000 |
Investment Securities - Unreali
Investment Securities - Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net Gain on Equity Securities | $ 95 | $ (106) | $ 379 | |
Less: Net gain recognized during the reporting period on equity securities sold during the period | 0 | 0 | 0 | $ 0 |
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date | $ 95 | $ (106) | $ 379 | $ 250 |
Loans - Loan Categories and Pas
Loans - Loan Categories and Past Due Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Financing Receivable, Past Due [Line Items] | |||
Loans receivable held-for-sale, net, not part of disposal group | $ 483 | $ 1,154 | $ 2,169 |
Total | 2,924,794 | 2,667,941 | 2,654,751 |
Loans 90 or More Days Past Due and Still Accruing Interest | 514 | 823 | 555 |
Nonaccrual Loans | 8,812 | 10,764 | 10,723 |
Nonaccrual With No Allowance for Credit Loss | 8,812 | ||
Interest Income on Nonaccrual Loans | 12 | ||
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 138,973 | 172,518 | 188,191 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 157 | 0 |
Nonaccrual Loans | 9 | 34 | 91 |
Nonaccrual With No Allowance for Credit Loss | 9 | ||
Interest Income on Nonaccrual Loans | 0 | ||
Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 679,217 | 628,929 | 615,081 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 3,401 | 7,243 | 7,766 |
Nonaccrual With No Allowance for Credit Loss | 3,401 | ||
Interest Income on Nonaccrual Loans | 0 | ||
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 1,055,585 | 920,556 | 921,189 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 1,708 | 1,697 | 1,101 |
Nonaccrual With No Allowance for Credit Loss | 1,708 | ||
Interest Income on Nonaccrual Loans | 0 | ||
Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 1,051,019 | 945,938 | 930,290 |
Loans 90 or More Days Past Due and Still Accruing Interest | 514 | 666 | 555 |
Nonaccrual Loans | 3,694 | 1,790 | 1,765 |
Nonaccrual With No Allowance for Credit Loss | 3,694 | ||
Interest Income on Nonaccrual Loans | 12 | ||
Financial Asset, Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 20,522 | 17,173 | 14,484 |
Financial Asset, Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 166 | 362 | 867 |
Financial Asset, Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 235 | 1,180 | 1,641 |
Financial Asset, Past Due | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 14,975 | 10,986 | 8,362 |
Financial Asset, Past Due | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 5,146 | 4,645 | 3,614 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 9,349 | 7,022 | 5,906 |
Financing Receivables, 30 to 59 Days Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 86 | 202 | 729 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 8,870 | 6,713 | 4,809 |
Financing Receivables, 30 to 59 Days Past Due | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 393 | 107 | 368 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 5,743 | 5,269 | 3,901 |
Financing Receivables, 60 to 89 Days Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 80 | 3 | 63 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 4,397 | 2,709 | 2,543 |
Financing Receivables, 60 to 89 Days Past Due | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 1,266 | 2,557 | 1,295 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 5,430 | 4,882 | 4,677 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 0 | 157 | 75 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 235 | 1,180 | 1,641 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 1,708 | 1,564 | 1,010 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 3,487 | 1,981 | 1,951 |
Financial Asset, Not Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 2,904,272 | 2,650,768 | 2,640,267 |
Financial Asset, Not Past Due | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 138,807 | 172,156 | 187,324 |
Financial Asset, Not Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 678,982 | 627,749 | 613,440 |
Financial Asset, Not Past Due | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 1,040,610 | 909,570 | 912,827 |
Financial Asset, Not Past Due | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total | $ 1,045,873 | $ 941,293 | $ 926,676 |
Loans - Additional Information
Loans - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) loan_portfolio | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan_portfolio | Sep. 30, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Number of loan portfolios | loan_portfolio | 4 | 4 | ||
Provision | $ 1,715 | $ 99 | $ 3,389 | $ (286) |
Off-balance sheet, credit loss, liability | 1,600 | 1,600 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Provision | 692 | $ (19) | 1,505 | $ 759 |
Mortgage loans in process of foreclosure, amount | $ 2,200 | $ 2,200 | ||
Consumer | Minimum | Automobile Loan | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Principal repayment terms, period | 3 years | |||
Consumer | Minimum | Credit Card Receivable | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Principal repayment terms, period | 1 year | |||
Consumer | Maximum | Automobile Loan | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Principal repayment terms, period | 7 years | |||
Consumer | Maximum | Credit Card Receivable | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Principal repayment terms, period | 5 years |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning balance | $ 28,090 | $ 27,010 | $ 27,281 | $ 27,932 | |
Charge-offs | (1,147) | (444) | (2,883) | (1,520) | |
Recoveries | 574 | 291 | 1,445 | 830 | |
Provision | 1,715 | 99 | 3,389 | (286) | |
Allowance for Loan Losses, Ending balance | $ 29,232 | 26,956 | $ 29,232 | 26,956 | |
Number of loans individually evaluated for impairment | loan | 4 | 4 | |||
Number of loans with an allowance for credit loss on loans individually evaluated for impairment | loan | 0 | 0 | |||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Ending Loan Balance - Collectively Evaluated | $ 2,920,134 | 2,646,821 | $ 2,920,134 | 2,646,821 | $ 2,660,536 |
Allowance for Credit Losses - Loans Collectively Evaluated | 29,232 | 26,340 | 29,232 | 26,340 | 26,682 |
Ending Loan Balance - Individually Evaluated | 4,660 | 7,930 | 4,660 | 7,930 | 7,405 |
Allowance for Credit Losses - Loans Individually Evaluated | 0 | 616 | 0 | 616 | 599 |
Consumer | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning balance | 2,358 | 2,443 | 2,402 | 2,179 | |
Charge-offs | (1,103) | (427) | (2,805) | (1,480) | |
Recoveries | 574 | 291 | 1,419 | 830 | |
Provision | 692 | (19) | 1,505 | 759 | |
Allowance for Loan Losses, Ending balance | 2,521 | 2,288 | 2,521 | 2,288 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Ending Loan Balance - Collectively Evaluated | 1,055,585 | 921,189 | 1,055,585 | 921,189 | 920,556 |
Allowance for Credit Losses - Loans Collectively Evaluated | 2,521 | 2,288 | 2,521 | 2,288 | 2,402 |
Ending Loan Balance - Individually Evaluated | 0 | 0 | 0 | 0 | 0 |
Allowance for Credit Losses - Loans Individually Evaluated | 0 | 0 | 0 | 0 | 0 |
Residential | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning balance | 9,331 | 8,720 | 9,445 | 9,442 | |
Charge-offs | 0 | 0 | (30) | (3) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 509 | (147) | 425 | (866) | |
Allowance for Loan Losses, Ending balance | 9,840 | 8,573 | 9,840 | 8,573 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Ending Loan Balance - Collectively Evaluated | 1,049,525 | 929,614 | 1,049,525 | 929,614 | 945,265 |
Allowance for Credit Losses - Loans Collectively Evaluated | 9,840 | 8,573 | 9,840 | 8,573 | 9,445 |
Ending Loan Balance - Individually Evaluated | 1,494 | 676 | 1,494 | 676 | 673 |
Allowance for Credit Losses - Loans Individually Evaluated | 0 | 0 | 0 | 0 | 0 |
Commercial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning balance | 2,465 | 2,241 | 2,298 | 4,257 | |
Charge-offs | (44) | (17) | (48) | (37) | |
Recoveries | 0 | 0 | 26 | 0 | |
Provision | (416) | 200 | (271) | (1,796) | |
Allowance for Loan Losses, Ending balance | 2,005 | 2,424 | 2,005 | 2,424 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Ending Loan Balance - Collectively Evaluated | 138,973 | 188,191 | 138,973 | 188,191 | 172,518 |
Allowance for Credit Losses - Loans Collectively Evaluated | 2,005 | 2,424 | 2,005 | 2,424 | 2,298 |
Ending Loan Balance - Individually Evaluated | 0 | 0 | 0 | 0 | 0 |
Allowance for Credit Losses - Loans Individually Evaluated | 0 | 0 | 0 | 0 | 0 |
Commercial Real Estate | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning balance | 13,936 | 13,606 | 13,136 | 12,054 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 930 | 65 | 1,730 | 1,617 | |
Allowance for Loan Losses, Ending balance | 14,866 | 13,671 | 14,866 | 13,671 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Ending Loan Balance - Collectively Evaluated | 676,051 | 607,827 | 676,051 | 607,827 | 622,197 |
Allowance for Credit Losses - Loans Collectively Evaluated | 14,866 | 13,055 | 14,866 | 13,055 | 12,537 |
Ending Loan Balance - Individually Evaluated | 3,166 | 7,254 | 3,166 | 7,254 | 6,732 |
Allowance for Credit Losses - Loans Individually Evaluated | $ 0 | $ 616 | $ 0 | $ 616 | $ 599 |
Loans - Amortized Cost Basis of
Loans - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 2,895,562 | $ 2,640,660 | $ 2,627,795 |
Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 4,660 | 7,405 | 7,930 |
Real Estate | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Real Estate | Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 3,166 | 6,732 | 7,254 |
Real Estate | Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Real Estate | Residential | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 1,494 | 673 | 676 |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 1,494 | 673 | 676 |
Residential Real Estate | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Residential Real Estate | Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Residential Real Estate | Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Residential Real Estate | Residential | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 1,494 | 673 | 676 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 3,166 | 6,732 | 7,254 |
Commercial Real Estate | Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Commercial Real Estate | Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 3,166 | 6,732 | 7,254 |
Commercial Real Estate | Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Commercial Real Estate | Residential | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 0 | $ 0 | $ 0 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | $ 730,646 | $ 817,694 | $ 644,847 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 695,363 | 726,209 | 781,780 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 636,937 | 308,232 | 344,893 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 236,251 | 221,110 | 246,720 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 154,837 | 153,542 | 166,154 |
Prior | 331,337 | 307,084 | 329,865 |
Revolving Loans Amortized Cost Basis | 139,423 | 134,070 | 140,492 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 2,924,794 | 2,667,941 | 2,654,751 |
Total Loans | 2,895,562 | 2,640,660 | 2,627,795 |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 34,589 | 79,156 | 85,489 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 35,080 | 39,313 | 44,118 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 27,133 | 12,183 | 14,653 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 7,999 | 11,661 | 12,860 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 9,605 | 7,817 | 8,542 |
Prior | 11,266 | 9,353 | 9,711 |
Revolving Loans Amortized Cost Basis | 13,301 | 13,035 | 12,818 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 138,973 | 172,518 | 188,191 |
Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 125,881 | 147,884 | 103,667 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 141,029 | 300,759 | 317,973 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 262,105 | 47,483 | 52,782 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 42,092 | 38,093 | 41,361 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 35,075 | 22,292 | 22,800 |
Prior | 69,762 | 70,471 | 73,563 |
Revolving Loans Amortized Cost Basis | 3,273 | 1,947 | 2,935 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 679,217 | 628,929 | 615,081 |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 406,474 | 402,946 | 331,155 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 309,589 | 239,891 | 265,282 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 173,325 | 155,019 | 175,780 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 101,762 | 82,824 | 97,723 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 47,932 | 29,747 | 37,142 |
Prior | 16,020 | 9,674 | 13,630 |
Revolving Loans Amortized Cost Basis | 483 | 455 | 477 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 1,055,585 | 920,556 | 921,189 |
Residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 163,702 | 187,708 | 124,536 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 209,665 | 146,246 | 154,407 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 174,374 | 93,547 | 101,678 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 84,398 | 88,532 | 94,776 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 62,225 | 93,686 | 97,670 |
Prior | 234,289 | 217,586 | 232,961 |
Revolving Loans Amortized Cost Basis | 122,366 | 118,633 | 124,262 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 1,051,019 | 945,938 | 930,290 |
Satisfactory | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 34,589 | 75,615 | 81,914 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 31,762 | 35,522 | 38,970 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 26,654 | 11,591 | 13,966 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 7,554 | 11,661 | 12,860 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 9,605 | 7,792 | 8,511 |
Prior | 11,194 | 3,442 | 3,917 |
Revolving Loans Amortized Cost Basis | 8,008 | 12,783 | 12,796 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 129,366 | 158,406 | 172,934 |
Satisfactory | Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 106,549 | 140,636 | 96,419 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 136,306 | 276,461 | 290,785 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 247,780 | 42,369 | 47,605 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 40,959 | 37,997 | 41,215 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 30,667 | 22,155 | 22,661 |
Prior | 64,934 | 59,698 | 62,203 |
Revolving Loans Amortized Cost Basis | 3,052 | 1,923 | 2,935 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 630,247 | 581,239 | 563,823 |
Special Mention | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 | 652 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 3 | 51 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 | 0 |
Prior | 35 | 5,899 | 5,499 |
Revolving Loans Amortized Cost Basis | 35 | 0 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 70 | 5,902 | 6,202 |
Special Mention | Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 9,801 | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 7,893 | 16,829 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 2,973 | 1,204 | 1,227 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 4,315 | 137 | 139 |
Prior | 1,425 | 1,906 | 1,976 |
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 18,514 | 11,140 | 20,171 |
Substandard | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 3,541 | 3,575 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 3,318 | 3,791 | 4,496 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 479 | 589 | 636 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 445 | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 25 | 31 |
Prior | 37 | 12 | 295 |
Revolving Loans Amortized Cost Basis | 5,258 | 252 | 22 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 9,537 | 8,210 | 9,055 |
Substandard | Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 9,531 | 7,248 | 7,248 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 4,723 | 16,405 | 10,359 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 11,352 | 3,910 | 3,950 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 1,133 | 96 | 146 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 93 | 0 | 0 |
Prior | 3,403 | 8,867 | 9,384 |
Revolving Loans Amortized Cost Basis | 221 | 24 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 30,456 | 36,550 | 31,087 |
Doubtful | Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 | 0 |
Prior | 0 | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Doubtful | Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 | 0 |
Prior | 0 | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Performing | Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 406,206 | 402,558 | 330,952 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 309,006 | 239,492 | 264,963 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 172,974 | 154,517 | 175,448 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 101,458 | 82,673 | 97,563 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 47,874 | 29,587 | 37,112 |
Prior | 15,933 | 9,578 | 13,572 |
Revolving Loans Amortized Cost Basis | 483 | 455 | 477 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 1,053,934 | 918,860 | 920,087 |
Performing | Residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 163,702 | 187,708 | 124,536 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 209,408 | 146,113 | 154,071 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 173,435 | 93,547 | 101,678 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 84,370 | 88,505 | 94,621 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 61,907 | 93,524 | 97,457 |
Prior | 232,021 | 215,679 | 231,375 |
Revolving Loans Amortized Cost Basis | 122,191 | 118,595 | 124,231 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 1,047,034 | 943,671 | 927,969 |
Nonperforming | Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 268 | 388 | 203 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 583 | 399 | 319 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 351 | 502 | 332 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 304 | 151 | 160 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 58 | 160 | 30 |
Prior | 87 | 96 | 58 |
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | 1,651 | 1,696 | 1,102 |
Nonperforming | Residential | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 257 | 133 | 336 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 939 | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 28 | 27 | 155 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 318 | 162 | 213 |
Prior | 2,268 | 1,907 | 1,586 |
Revolving Loans Amortized Cost Basis | 175 | 38 | 31 |
Revolving Loan Converted to Term | 0 | 0 | 0 |
Total | $ 3,985 | $ 2,267 | $ 2,321 |
Loans - Modified in Trouble Deb
Loans - Modified in Trouble Debt Restructurings (Details) - Entity Loan Modification Program - Payment Deferral $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 USD ($) contract loan | Sep. 30, 2021 USD ($) loan contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Extend Credit and Letters of Credit (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 440,167 | $ 402,280 | $ 431,452 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 3,445 | 3,223 | 3,392 |
Fair Value | $ 0 | $ 24 | $ 21 |
Minimum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 1% | ||
Maximum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 3% |
Comprehensive (Loss) Income - O
Comprehensive (Loss) Income - Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Before-Tax Amount | ||||
Other comprehensive (loss) income, before tax | $ (26,203) | $ (1,427) | $ (66,388) | $ (3,901) |
Tax (Expense) Benefit | ||||
Other comprehensive (loss) income, tax | 6,697 | 366 | 16,971 | 998 |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income before reclassifications | (20,023) | (1,096) | (50,027) | (3,015) |
Reclassification from AOCI, current period | 517 | 35 | 610 | 112 |
Other Comprehensive Loss | (19,506) | (1,061) | (49,417) | (2,903) |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Before-Tax Amount | ||||
OCI, before reclassifications | (27,945) | (1,719) | (70,945) | (5,333) |
Tax (Expense) Benefit | ||||
Other comprehensive (loss) income before reclassifications, tax | 7,144 | 440 | 18,137 | 1,364 |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income before reclassifications | (20,801) | (1,279) | (52,808) | (3,969) |
Reclassification from AOCI, current period | 0 | 0 | 0 | 0 |
Other Comprehensive Loss | (20,801) | (1,279) | (52,808) | (3,969) |
Unrealized Loss on Cash Flow Swap | ||||
Before-Tax Amount | ||||
OCI, before reclassifications | 1,046 | 245 | 3,737 | 1,281 |
Reclassification from AOCI, current period | 75 | (34) | 57 | (92) |
Tax (Expense) Benefit | ||||
Other comprehensive (loss) income before reclassifications, tax | (268) | (62) | (956) | (327) |
Reclassification from AOCI, current period | (20) | 9 | (15) | 24 |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income before reclassifications | 778 | 183 | 2,781 | 954 |
Reclassification from AOCI, current period | 55 | (25) | 42 | (68) |
Other Comprehensive Loss | 833 | 158 | 2,823 | 886 |
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||
Before-Tax Amount | ||||
Reclassification from AOCI, current period | 564 | 22 | 592 | 68 |
Tax (Expense) Benefit | ||||
Reclassification from AOCI, current period | (144) | (5) | (151) | (17) |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 |
Reclassification from AOCI, current period | 420 | 17 | 441 | 51 |
Other Comprehensive Loss | 420 | 17 | 441 | 51 |
Amortization of Defined Benefit Pension, Prior-Service Costs | ||||
Before-Tax Amount | ||||
Reclassification from AOCI, current period | 57 | 59 | 171 | 175 |
Tax (Expense) Benefit | ||||
Reclassification from AOCI, current period | (15) | (16) | (44) | (46) |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 |
Reclassification from AOCI, current period | 42 | 43 | 127 | 129 |
Other Comprehensive Loss | $ 42 | $ 43 | $ 127 | $ 129 |
Comprehensive (Loss) Income - C
Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | $ 356,498 | $ 353,033 | $ 371,186 | $ 334,392 |
Other comprehensive income or loss before reclassifications | (20,023) | (1,096) | (50,027) | (3,015) |
Amounts reclassified from accumulated other comprehensive income or loss | 517 | 35 | 610 | 112 |
Other Comprehensive Loss | (19,506) | (1,061) | (49,417) | (2,903) |
Stockholders' equity, ending balance | 345,550 | 360,171 | 345,550 | 360,171 |
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (29,564) | (2,658) | 347 | (816) |
Other Comprehensive Loss | (19,506) | (1,061) | (49,417) | (2,903) |
Stockholders' equity, ending balance | (49,070) | (3,719) | (49,070) | (3,719) |
Unrealized Gains and Losses on Available for Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (32,621) | 3,109 | (614) | 5,799 |
Other comprehensive income or loss before reclassifications | (20,801) | (1,279) | (52,808) | (3,969) |
Amounts reclassified from accumulated other comprehensive income or loss | 0 | 0 | 0 | 0 |
Other Comprehensive Loss | (20,801) | (1,279) | (52,808) | (3,969) |
Stockholders' equity, ending balance | (53,422) | 1,830 | (53,422) | 1,830 |
Unrealized Loss on Cash Flow Swap | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | 3,310 | 1,213 | 1,320 | 485 |
Other comprehensive income or loss before reclassifications | 778 | 183 | 2,781 | 954 |
Amounts reclassified from accumulated other comprehensive income or loss | 55 | (25) | 42 | (68) |
Other Comprehensive Loss | 833 | 158 | 2,823 | 886 |
Stockholders' equity, ending balance | 4,143 | 1,371 | 4,143 | 1,371 |
Net Actuarial Gain (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | 660 | (5,895) | 639 | (5,929) |
Other comprehensive income or loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income or loss | 420 | 17 | 441 | 51 |
Other Comprehensive Loss | 420 | 17 | 441 | 51 |
Stockholders' equity, ending balance | 1,080 | (5,878) | 1,080 | (5,878) |
Net Prior Service (Cost) Credit | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (913) | (1,085) | (998) | (1,171) |
Other comprehensive income or loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income or loss | 42 | 43 | 127 | 129 |
Other Comprehensive Loss | 42 | 43 | 127 | 129 |
Stockholders' equity, ending balance | $ (871) | $ (1,042) | $ (871) | $ (1,042) |
Comprehensive (Loss) Income - R
Comprehensive (Loss) Income - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 3,306 | $ 1,169 | $ 5,983 | $ 4,043 |
Salaries and Employee Benefits | 12,427 | 11,377 | 35,400 | 33,360 |
Total before Tax | 15,565 | 16,810 | 47,370 | 51,031 |
Provision for income taxes | (3,402) | (3,821) | (10,658) | (11,483) |
Net Income | 12,163 | 12,989 | 36,712 | 39,548 |
Amounts Reclassified from Accumulated Other Comprehensive Income | Unrealized Loss on Cash Flow Swap | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (75) | 34 | (57) | 92 |
Amounts Reclassified from Accumulated Other Comprehensive Income | Amortization of Defined Benefit Pension, Prior-Service Costs | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Employee Benefits | (57) | (59) | (171) | (175) |
Amounts Reclassified from Accumulated Other Comprehensive Income | Amortization of Defined Benefit Pension, Actuarial Loss | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and Employee Benefits | (564) | (22) | (592) | (68) |
Amounts Reclassified from Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before Tax | (696) | (47) | (820) | (151) |
Provision for income taxes | 179 | 12 | 210 | 39 |
Net Income | $ (517) | $ (35) | $ (610) | $ (112) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 9 Months Ended | ||
Sep. 30, 2022 plan $ / shares shares | Sep. 23, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of plans | plan | 3 | ||
Stock dividend, percent | 300% | 3% | 300% |
Shares | |||
Outstanding, beginning of period (in shares) | shares | 278,899 | ||
Granted (in shares) | shares | 58,710 | ||
Exercised (in shares) | shares | (17,803) | ||
Forfeited (in shares) | shares | (18,844) | ||
Outstanding, end of period (in shares) | shares | 300,962 | ||
Vested at period end (in shares) | shares | 178,250 | ||
Expected to vest (in shares) | shares | 122,712 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 27.62 | ||
Granted (in dollars per share) | 34.79 | ||
Exercised (in dollars per share) | 20.56 | ||
Forfeited (in dollars per share) | 30.71 | ||
Outstanding, end of period (in dollars per share) | 29.24 | ||
Vested at period end (in dollars per share) | 27.56 | ||
Expected to vest (in dollars per share) | 31.68 | ||
Fair Value of Options Granted (in dollars per share) | $ 7.43 | ||
Dividend Yield | 2.90% | ||
Expected Volatility | 27.15% | ||
Risk Free Interest Rate | 1.69% | ||
Expected Lives (in years) | 8 years 6 months 21 days | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period (in years) | 10 years | ||
Award vesting period (in years) | 4 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount expensed | $ 79 | $ 71 | $ 233 | $ 212 |
Discount from market price, percent | 5% | |||
Restricted Stock Units (RSU) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount expensed | $ 35 | $ 32 | $ 105 | $ 98 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSU) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock Units | ||
Balance at Beginning of Period (in shares) | 13,599 | 12,373 |
Granted (in shares) | 4,312 | 5,026 |
Vested (in shares) | (4,391) | (3,800) |
Balance at End of Period (in shares) | 13,520 | 13,599 |
Weighted Average Grant Date Fair Value | ||
Outstanding at Beginning of period (in dollars per share) | $ 29.27 | $ 29.81 |
Granted (in dollars per share) | 34.79 | 27.71 |
Vested (in dollars per share) | 28.17 | 28.95 |
Outstanding at End of period (in dollars per share) | $ 31.38 | $ 29.27 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | |
Net Periodic Benefit Cost [Line Items] | ||||||
Interest credit under cash balance plan | 0.03 | |||||
Employer matching contribution, percentage | 5% | |||||
Benefit obligation from lump sum payment to total benefit obligation ratio | 7.91% | 7.91% | ||||
Estimate effect of settlement to be recognized in net periodic cost | $ 550,000 | $ 550,000 | ||||
Forecast | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Service cost and interest cost | $ 3,316,118 | |||||
Unamortized net (gain) loss | $ 7,000,000 | |||||
Employees' Pension Plan | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 1.02% | |||||
Defined benefit plan, increase in benefit payable, percent | 3% | 3% | ||||
Defined benefit plan, benefit obligation, increase (decrease) for plan amendment | $ 351,638 | |||||
Defined benefit plan, amortization of service cost | 9 years 8 months 12 days | |||||
Service Cost | $ 469,000 | $ 484,000 | $ 1,408,000 | $ 1,451,000 | ||
Interest Cost | 360,000 | 340,000 | 1,079,000 | 1,023,000 | ||
Expected Return on Plan Assets | (1,078,000) | (945,000) | (3,235,000) | (2,835,000) | ||
Amortization of Prior Service Cost | 19,000 | 20,000 | 58,000 | 59,000 | ||
Amortization of Net Loss (Gain) | 550,000 | 0 | 550,000 | 0 | ||
Net Periodic (Benefit) Cost | 320,000 | (101,000) | (140,000) | (302,000) | ||
Plan Contributions During the Period | 0 | 0 | 0 | 0 | ||
Estimated Future Contributions in the Current Fiscal Year | 0 | $ 0 | ||||
Select Executive Retirement Plan | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 2.72% | |||||
Defined benefit plan, amortization of service cost | 12 years 6 months | |||||
Defined benefit plan, benefit obligation, period increase (decrease) | $ 122,797 | |||||
Service Cost | 208,000 | 146,000 | 626,000 | 437,000 | ||
Interest Cost | 57,000 | 48,000 | 169,000 | 143,000 | ||
Expected Return on Plan Assets | 0 | 0 | 0 | 0 | ||
Amortization of Prior Service Cost | 11,000 | 12,000 | 33,000 | 36,000 | ||
Amortization of Net Loss (Gain) | 53,000 | 44,000 | 159,000 | 134,000 | ||
Net Periodic (Benefit) Cost | 329,000 | 250,000 | 987,000 | 750,000 | ||
Plan Contributions During the Period | 116,000 | 118,000 | 347,000 | 354,000 | ||
Estimated Future Contributions in the Current Fiscal Year | 116,000 | 116,000 | ||||
Post-Retirement Benefit Plans | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 3.08% | |||||
Service Cost | 23,000 | 27,000 | 68,000 | 82,000 | ||
Interest Cost | 61,000 | 62,000 | 185,000 | 186,000 | ||
Expected Return on Plan Assets | 0 | 0 | 0 | 0 | ||
Amortization of Prior Service Cost | 27,000 | 27,000 | 80,000 | 80,000 | ||
Amortization of Net Loss (Gain) | (39,000) | (22,000) | (117,000) | (66,000) | ||
Net Periodic (Benefit) Cost | 72,000 | 94,000 | 216,000 | 282,000 | ||
Plan Contributions During the Period | 43,000 | $ 32,000 | 131,000 | $ 87,000 | ||
Estimated Future Contributions in the Current Fiscal Year | $ 43,000 | $ 43,000 | ||||
On or Subsequent to January 1, 2003 | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Service credits, percent of eligible salaries | 6% | |||||
Minimum | Prior to January 1, 2003 | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Service credits, percent of eligible salaries | 6% | |||||
Maximum | Prior to January 1, 2003 | ||||||
Net Periodic Benefit Cost [Line Items] | ||||||
Service credits, percent of eligible salaries | 12% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 23, 2022 | ||
Earnings Per Share [Abstract] | ||||||
Stock dividend, percent | 300% | 300% | 300% | 300% | 3% | |
Net Income | $ 12,163 | $ 12,989 | $ 36,712 | $ 39,548 | ||
Weighted Average Shares - Basic (in shares) | [1] | 16,512 | 16,508 | 16,506 | 16,495 | |
Earnings Per Share - Basic (in dollars per share) | $ 0.74 | $ 0.79 | $ 2.22 | $ 2.40 | ||
Dilutive Average Shares Attributable to Stock Options (in shares) | 46 | 60 | 47 | 59 | ||
Weighted Average Shares - Diluted (in shares) | [1] | 16,558 | 16,568 | 16,553 | 16,554 | |
Earnings Per Share - Diluted (in dollars per share) | $ 0.74 | $ 0.78 | $ 2.22 | $ 2.39 | ||
[1]Share and Per Share Amounts have been restated for the September 23, 2022 3% stock dividend. |
Fair Values - Recurring and Non
Fair Values - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | $ 2,126 | $ 1,747 | $ 1,886 |
Available-for-Sale at Fair Value | 575,054 | 559,316 | 486,900 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 2,126 | 1,747 | 1,886 |
Total Securities Measured on a Recurring Basis | 577,180 | 561,063 | 488,786 |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 |
Total Measured on a Recurring Basis | 585,688 | 563,146 | 491,073 |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 |
Total Measured on a Recurring Basis | 8,508 | 2,083 | 2,287 |
Available-for-Sale at Fair Value | 575,054 | 559,316 | 486,900 |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 0 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other assets | 0 | 0 | 0 |
Total Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other liabilities | 0 | 0 | 0 |
Total Measured on a Recurring Basis | 0 | 0 | 0 |
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 2,126 | 1,747 | 1,886 |
Total Securities Measured on a Recurring Basis | 577,180 | 561,063 | 488,786 |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 |
Total Measured on a Recurring Basis | 585,688 | 563,146 | 491,073 |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 |
Total Measured on a Recurring Basis | 8,508 | 2,083 | 2,287 |
Available-for-Sale at Fair Value | 575,054 | 559,316 | 486,900 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 0 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other assets | 0 | 0 | 0 |
Total Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other liabilities | 0 | 0 | 0 |
Total Measured on a Recurring Basis | 0 | 0 | 0 |
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Evaluated Loans | 0 | 2,457 | 2,456 |
Collateral Dependent Impaired Loans, Losses Recognized in Earnings | |||
Other Real Estate Owned and Repossessed Assets, Net | 604 | 126 | 351 |
Other Real Estate owned and Repossessed Assets, Net, Losses Recognized in Earnings | 0 | 0 | 13 |
Fair Value, Measurements, Nonrecurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Evaluated Loans | 0 | 0 | 0 |
Other Real Estate Owned and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Evaluated Loans | 0 | 0 | 0 |
Other Real Estate Owned and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Evaluated Loans | 0 | 2,457 | 2,456 |
Other Real Estate Owned and Repossessed Assets, Net | 604 | 126 | 351 |
U.S. Government & Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 163,965 | 108,365 | 109,305 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 163,965 | 108,365 | 109,305 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 163,965 | 108,365 | 109,305 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 340 | 400 | 400 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 340 | 400 | 400 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 340 | 400 | 400 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 409,949 | 449,751 | 376,395 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 409,949 | 449,751 | 376,395 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Corporate and Other Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | $ 0 | $ 0 | $ 0 |
Fair Values - Fair Value by Bal
Fair Values - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||||
Cash and Cash Equivalents | $ 373,429 | $ 457,696 | $ 598,366 | $ 380,991 |
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Held-To-Maturity Securities, at Amortized Cost | 182,178 | 196,566 | 198,337 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Net Loans | 2,895,562 | 2,640,660 | 2,627,795 | |
Deposits | 3,795,105 | 3,550,497 | 3,605,563 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | 0 | 2,426 | |
Federal Home Loan Bank Term Advances | 25,000 | 45,000 | 45,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Fair Value | ||||
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Securities Held-to-Maturity | 175,800 | 201,292 | 203,936 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Carrying Amount | ||||
Carrying Value | ||||
Cash and Cash Equivalents | 373,429 | 457,696 | 598,366 | |
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Held-To-Maturity Securities, at Amortized Cost | 182,178 | 196,566 | 198,337 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 4,720 | 5,380 | 5,380 | |
Net Loans | 2,895,562 | 2,640,660 | 2,627,795 | |
Accrued Interest Receivable | 8,549 | 7,384 | 7,899 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Deposits | 3,795,105 | 3,550,497 | 3,605,563 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 2,426 | |||
Federal Home Loan Bank Overnight Advances | 45,000 | |||
Federal Home Loan Bank Term Advances | 25,000 | 45,000 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 202 | 138 | 137 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Fair Value | ||||
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Fair Value | ||||
Carrying Value | ||||
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Fair Value | ||||
Cash and Cash Equivalents | 373,429 | 457,696 | 598,366 | |
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Securities Held-to-Maturity | 175,800 | 201,292 | 203,936 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 4,720 | 5,380 | 5,380 | |
Net Loans | 2,714,587 | 2,618,311 | 2,632,843 | |
Accrued Interest Receivable | 8,549 | 7,384 | 7,899 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Deposits | 3,785,960 | 3,548,554 | 3,604,271 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 2,426 | |||
Federal Home Loan Bank Overnight Advances | 45,518 | |||
Federal Home Loan Bank Term Advances | 24,833 | 45,906 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 202 | 138 | 137 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Quoted Prices In Active Markets for Indentical Assets (Level 1) | Fair Value | ||||
Carrying Value | ||||
Securities Available-for-Sale | 0 | 0 | 0 | |
Equity Securities | 0 | 0 | 0 | |
Derivatives, included in other assets | 0 | 0 | ||
Derivatives, included in other liabilities | 0 | 0 | 0 | |
Fair Value | ||||
Cash and Cash Equivalents | 373,429 | 457,696 | 598,366 | |
Securities Available-for-Sale | 0 | 0 | 0 | |
Securities Held-to-Maturity | 0 | 0 | 0 | |
Equity Securities | 0 | 0 | 0 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans | 0 | 0 | 0 | |
Accrued Interest Receivable | 0 | 0 | 0 | |
Derivatives, included in other assets | 0 | 0 | ||
Deposits | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | |||
Federal Home Loan Bank Overnight Advances | 0 | |||
Federal Home Loan Bank Term Advances | 0 | 0 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 0 | 0 | 0 | |
Accrued Interest Payable | 0 | 0 | 0 | |
Derivatives, included in other liabilities | 0 | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value | ||||
Carrying Value | ||||
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Fair Value | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | |
Securities Available-for-Sale | 575,054 | 559,316 | 486,900 | |
Securities Held-to-Maturity | 175,800 | 201,292 | 203,936 | |
Equity Securities | 2,126 | 1,747 | 1,886 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 4,720 | 5,380 | 5,380 | |
Net Loans | 0 | 0 | 0 | |
Accrued Interest Receivable | 8,549 | 7,384 | 7,899 | |
Derivatives, included in other assets | 8,508 | 2,083 | 2,287 | |
Deposits | 3,785,960 | 3,548,554 | 3,604,271 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 2,426 | |||
Federal Home Loan Bank Overnight Advances | 45,518 | |||
Federal Home Loan Bank Term Advances | 24,833 | 45,906 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 202 | 138 | 137 | |
Derivatives, included in other liabilities | 8,508 | 2,083 | 2,287 | |
Significant Unobservable Inputs (Level 3) | Fair Value | ||||
Carrying Value | ||||
Securities Available-for-Sale | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Derivatives, included in other assets | 0 | 0 | ||
Derivatives, included in other liabilities | 0 | 0 | 0 | |
Fair Value | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | |
Securities Available-for-Sale | 0 | 0 | 0 | |
Securities Held-to-Maturity | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans | 2,714,587 | 2,618,311 | 2,632,843 | |
Accrued Interest Receivable | 0 | 0 | 0 | |
Derivatives, included in other assets | 0 | 0 | ||
Deposits | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | |||
Federal Home Loan Bank Overnight Advances | 0 | |||
Federal Home Loan Bank Term Advances | 0 | 0 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 0 | 0 | 0 | |
Accrued Interest Payable | 0 | 0 | 0 | |
Derivatives, included in other liabilities | $ 0 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 office | |
Leases [Abstract] | |
Number of branch offices | 2 |
Number of leased administrative offices | 1 |
Leases - Quantitative Lease Dat
Leases - Quantitative Lease Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finance Lease Amounts: | |||||
Right-of-Use Assets | $ 4,681 | $ 4,859 | $ 4,681 | $ 4,859 | |
Lease Liabilities | 5,131 | 5,181 | 5,131 | 5,181 | $ 5,169 |
Operating Lease Amounts: | |||||
Right-of-Use Assets | 5,889 | 6,786 | 5,889 | 6,786 | |
Lease Liabilities | $ 6,082 | $ 6,965 | 6,082 | 6,965 | |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: | |||||
Operating Outgoing Cash Flows From Finance Leases | 145 | 146 | |||
Operating Outgoing Cash Flows From Operating Leases | 1,041 | 571 | |||
Financing Outgoing Cash Flows From Finance Leases | 38 | 36 | |||
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities | 0 | 0 | |||
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities | $ 0 | $ 2,126 | |||
Weighted-average Remaining Lease Term - Finance Leases (Yrs.) | 27 years 6 months | 28 years 5 months 15 days | 27 years 6 months | 28 years 5 months 15 days | |
Weighted-average Remaining Lease Term - Operating Leases (Yrs.) | 11 years 4 months 9 days | 11 years 9 months 3 days | 11 years 4 months 9 days | 11 years 9 months 3 days | |
Weighted-average Discount Rate—Finance Leases | 3.75% | 3.75% | 3.75% | 3.75% | |
Weighted-average Discount Rate—Operating Leases | 2.87% | 2.85% | 2.87% | 2.85% | |
Finance Lease Cost: | |||||
Reduction of Right-of-Use Assets | $ 44 | $ 44 | $ 133 | $ 133 | |
Interest on Lease Liabilities | 48 | 48 | 145 | 146 | |
Operating Lease Cost | 305 | 238 | 925 | 737 | |
Short-term Lease Cost | 9 | 15 | 32 | 28 | |
Variable Lease Cost | 86 | 69 | 253 | 203 | |
Total Lease Cost | $ 492 | $ 414 | $ 1,488 | $ 1,247 |
Leases - Future Lease Payments
Leases - Future Lease Payments on Finance and Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Operating Leases | |||
2023 | $ 1,077 | ||
2024 | 723 | ||
2025 | 648 | ||
2026 | 590 | ||
2027 | 561 | ||
Thereafter | 3,698 | ||
Total Undiscounted Cash Flows | 7,297 | ||
Less: Net Present Value Adjustment | 1,215 | ||
Lease Liabilities | 6,082 | $ 6,965 | |
Financing Leases | |||
2023 | 243 | ||
2024 | 247 | ||
2025 | 259 | ||
2026 | 268 | ||
2027 | 268 | ||
Thereafter | 7,331 | ||
Total Undiscounted Cash Flows | 8,616 | ||
Less: Net Present Value Adjustment | 3,485 | ||
Lease Liabilities | $ 5,131 | $ 5,169 | $ 5,181 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Derivative [Line Items] | |||
Derivative asset | $ 8,508 | $ 2,083 | $ 2,287 |
Derivative liability | 8,508 | 2,083 | 2,287 |
Notional amount | $ 134,406 | $ 172,668 | $ 172,026 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Hedge Agreements (Details) - Interest Rate Swap - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Amount of hedged item | $ 20,000 | ||
Amount of gain recognized in AOCI | 3,737 | $ 1,281 | $ 1,249 |
Amount of (loss) gain reclassified from AOCI to interest expense | $ (57) | $ 92 | $ 126 |
Uncategorized Items - arow-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |