Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Arrow Financial Corporation | |
Entity Central Index Key | 717,538 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 14,452,521 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | |||
Cash and Due From Banks | $ 57,385 | $ 42,562 | $ 55,683 |
Interest-Bearing Deposits at Banks | 34,910 | 30,276 | 24,983 |
Investment Securities: | |||
Available-for-Sale | 340,411 | 300,200 | 315,459 |
Held-to-Maturity (Approximate Fair Value of $282,719 at September 30, 2018; $335,901 at December 31, 2017; and $343,899 at September 30, 2017) | 289,952 | 335,907 | 341,526 |
Equity Securities | 1,916 | 0 | 0 |
Other Investments | 10,866 | 9,949 | 6,704 |
Loans | 2,126,100 | 1,950,770 | 1,908,799 |
Allowance for Loan Losses | (20,003) | (18,586) | (17,695) |
Net Loans | 2,106,097 | 1,932,184 | 1,891,104 |
Premises and Equipment, Net | 28,601 | 27,619 | 26,432 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 1,954 | 2,289 | 2,395 |
Other Assets | 59,255 | 57,606 | 58,303 |
Total Assets | 2,953,220 | 2,760,465 | 2,744,462 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 490,469 | 441,945 | 448,515 |
Interest-Bearing Checking Accounts | 899,547 | 907,315 | 967,250 |
Savings Deposits | 758,727 | 694,573 | 696,805 |
Time Deposits over $250,000 | 76,226 | 38,147 | 28,464 |
Other Time Deposits | 182,886 | 163,136 | 166,082 |
Total Deposits | 2,407,855 | 2,245,116 | 2,307,116 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 64,966 | 61,419 | |
Federal Home Loan Bank Overnight Advances | 105,000 | 33,000 | |
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | |
Other Liabilities | 22,052 | 20,780 | 23,279 |
Total Liabilities | 2,688,410 | 2,510,862 | 2,499,814 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized | 0 | 0 | 0 |
Common Stock, $1 Par Value; 20,000,000 Shares Authorized (19,035,565 Shares Issued at September 30, 2018; 18,481,301 at December 31, 2017 and 18,481,301 at September 30, 2017) | 19,035 | 18,481 | 18,481 |
Additional Paid-in Capital | 313,763 | 290,219 | 289,294 |
Retained Earnings | 24,258 | 28,818 | 22,581 |
Unallocated ESOP Shares (9,932 Shares at September 30, 2018; 9,643 Shares at December 31, 2017 and 20,050 Shares at September 30, 2017) | (200) | (200) | (400) |
Accumulated Other Comprehensive Loss | (12,621) | (8,514) | (6,135) |
Treasury Stock, at Cost (4,584,147 Shares at September 30, 2018; 4,541,524 Shares at December 31, 2017 and 4,570,291 Shares at September 30, 2017) | (79,425) | (79,201) | (79,173) |
Total Stockholders’ Equity | 264,810 | 249,603 | 244,648 |
Total Liabilities and Stockholders’ Equity | $ 2,953,220 | $ 2,760,465 | $ 2,744,462 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Held-to-Maturity Securities, at Fair Value | $ 282,719 | $ 335,901 | $ 343,899 |
Preferred Stock, par value, in dollars per share | $ 5 | $ 5 | $ 5 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Common Stock, par value, in dollars per share | $ 1 | $ 1 | $ 1 |
Common Stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common Stock, shares issued | 19,035,565 | 18,481,301 | 18,481,301 |
Unallocated ESOP Shares, in shares | 9,932 | 9,643 | 20,050 |
Treasury Stock, in shares | 4,584,147 | 4,541,524 | 4,570,291 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
INTEREST AND DIVIDEND INCOME | |||||||||
Interest and Fees on Loans | $ 20,839 | $ 17,996 | $ 59,606 | $ 51,693 | |||||
Interest on Deposits at Banks | 182 | 104 | 474 | 242 | |||||
Interest and Dividends on Investment Securities: | |||||||||
Fully Taxable | 2,187 | 1,924 | 6,128 | 5,927 | |||||
Exempt from Federal Taxes | 1,287 | 1,575 | 4,295 | 4,660 | |||||
Total Interest and Dividend Income | 24,495 | 21,599 | 70,503 | 62,522 | |||||
INTEREST EXPENSE | |||||||||
Interest-Bearing Checking Accounts | 390 | 376 | 1,165 | 1,088 | |||||
Savings Deposits | 901 | 356 | 2,134 | 963 | |||||
Time Deposits over $250,000 | 301 | 66 | 833 | 187 | |||||
Other Time Deposits | 370 | 241 | 911 | 702 | |||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 15 | 13 | 47 | 29 | |||||
Federal Home Loan Bank Advances | 1,270 | 700 | 2,340 | 1,651 | |||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 251 | 197 | 712 | 564 | |||||
Total Interest Expense | 3,498 | 1,949 | 8,142 | 5,184 | |||||
NET INTEREST INCOME | 20,997 | 19,650 | 62,361 | 57,338 | |||||
Provision for Loan Losses | 586 | 800 | 1,961 | 1,580 | |||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 20,411 | 18,850 | 60,400 | 55,758 | |||||
NONINTEREST INCOME | |||||||||
Insurance Commissions | 2,024 | 2,113 | 6,119 | 6,426 | |||||
Net Gain on Securities | 114 | 10 | 355 | 10 | |||||
Net Gain on Sales of Loans | 54 | 182 | 115 | 431 | |||||
Other Operating Income | 291 | 267 | 900 | 867 | |||||
Total Noninterest Income | 7,350 | 7,141 | 22,150 | 20,893 | |||||
NONINTEREST EXPENSE | |||||||||
Salaries and Employee Benefits | 9,771 | 9,382 | 28,952 | 27,740 | |||||
Occupancy Expenses, Net | 2,262 | 2,371 | 7,223 | 7,410 | |||||
FDIC Assessments | 218 | 225 | 658 | 679 | |||||
Other Operating Expense | 3,775 | 3,570 | 11,341 | 10,832 | |||||
Total Noninterest Expense | 16,026 | 15,548 | 48,174 | 46,661 | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 11,735 | 10,443 | 34,376 | 29,990 | |||||
Provision for Income Taxes | 2,475 | 3,027 | 6,855 | 8,735 | |||||
NET INCOME | $ 9,260 | $ 7,416 | $ 27,521 | $ 21,255 | |||||
Average Shares Outstanding: | |||||||||
Basic, in shares | 14,431 | [1] | 14,305 | [2] | 14,393 | [1] | 14,306 | [2] | |
Diluted, in shares | [2] | 14,520 | 14,385 | 14,479 | 14,401 | ||||
Per Common Share: | |||||||||
Basic Earnings, in dollars per share | $ 0.64 | [1] | $ 0.52 | [1] | $ 1.91 | [1] | $ 1.49 | [2] | |
Diluted Earnings, in dollars per share | $ 0.64 | [1] | $ 0.52 | [1] | $ 1.90 | [1] | $ 1.48 | [2] | |
Fiduciary and Trust | |||||||||
NONINTEREST INCOME | |||||||||
Revenue from Contract with Customer | $ 2,262 | $ 2,116 | $ 7,106 | $ 6,284 | |||||
Deposit Account | |||||||||
NONINTEREST INCOME | |||||||||
Revenue from Contract with Customer | $ 2,605 | $ 2,453 | $ 7,555 | $ 6,875 | |||||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend. | ||||||||
[2] | Share and Per Share Amounts have been restated for the September 27, 2018 3% stock dividend. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Income | $ 9,260 | $ 7,416 | $ 27,521 | $ 21,255 | |
Other Comprehensive Income, Net of Tax: | |||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | (897) | 9 | (4,017) | 465 | |
Reclassification Adjustments for Securities Gains Included in Net Income | 0 | 6 | 0 | 6 | [1] |
Amortization of Net Retirement Plan Actuarial Loss | 60 | 64 | 181 | 245 | |
Accretion of Net Retirement Plan Prior Service Credit | 20 | (2) | 60 | (5) | |
Other Comprehensive Income (Loss) | (817) | 65 | (3,776) | 699 | |
Comprehensive Income | $ 8,443 | $ 7,481 | $ 23,745 | $ 21,954 | |
[1] | All amounts are net of tax. |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Shares | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Stockholders' Equity, Beginning Balance at Dec. 31, 2016 | $ 232,852 | $ 17,943 | $ 270,880 | $ 28,644 | $ (400) | $ (6,834) | $ (77,381) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 21,255 | 21,255 | |||||||
Other Comprehensive Income (Loss) | 699 | 699 | [1] | ||||||
Stock Dividend | 538 | 16,661 | (17,199) | ||||||
Cash Dividends Paid | [2] | (10,119) | (10,119) | ||||||
Stock Options Exercised, Net | 734 | 335 | 399 | ||||||
Shares Issued Under the Directors' Stock Plan | 126 | 84 | 42 | ||||||
Shares Issued Under the Employee Stock Purchase Plan | 351 | 230 | 121 | ||||||
Shares Issued for Dividend Reinvestment Plans | 1,256 | 843 | 413 | ||||||
Stock-Based Compensation Expense | 261 | 261 | |||||||
Purchases of Treasury Stock | (2,767) | (2,767) | |||||||
Stockholders' Equity, Ending Balance at Sep. 30, 2017 | 244,648 | 18,481 | 289,294 | 22,581 | (400) | (6,135) | (79,173) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Impact of change in accounting policy | [1] | (331) | |||||||
Impact of change in accounting policy | Accounting Standards Update 2014-09 | (102) | (102) | |||||||
Impact of change in accounting policy | Accounting Standards Update 2016-01 | 0 | 331 | (331) | ||||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2017 | 249,603 | 18,481 | 290,219 | 28,818 | (200) | (8,514) | (79,201) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 27,521 | 27,521 | |||||||
Other Comprehensive Income (Loss) | (3,776) | (3,776) | [1] | ||||||
Stock Dividend | 0 | 554 | 21,126 | (21,680) | |||||
Cash Dividends Paid | (10,630) | (10,630) | |||||||
Stock Options Exercised, Net | 1,977 | 942 | 1,035 | ||||||
Shares Issued Under the Directors' Stock Plan | 103 | 72 | 31 | ||||||
Shares Issued Under the Employee Stock Purchase Plan | 368 | 247 | 121 | ||||||
Shares Issued for Dividend Reinvestment Plans | 1,302 | 890 | 412 | ||||||
Stock-Based Compensation Expense | 267 | 267 | |||||||
Purchases of Treasury Stock | (1,823) | (1,823) | |||||||
Stockholders' Equity, Ending Balance at Sep. 30, 2018 | $ 264,810 | $ 19,035 | $ 313,763 | $ 24,258 | $ (200) | $ (12,621) | $ (79,425) | ||
[1] | All amounts are net of tax. | ||||||||
[2] | Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity Parenthetical - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock Dividends, in shares | 554,264 | 538,100 |
Cash Dividends Paid, per Share, in dollars per share | $ 0.728 | $ 0.707 |
Exercised, in shares | 91,979 | 34,489 |
Shares Issued Under Directors Stock Plan, in shares | 2,705 | 3,927 |
Shares Issued Under Employee Stock Purchase Plan, in shares | 10,801 | 10,869 |
Shares Issued for Dividend Reinvestment Plans - Shares | 35,947 | 37,525 |
Purchase of Treasury Stock, in shares | 50,697 | 83,256 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 27,521 | $ 21,255 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Loan Losses | 1,961 | 1,580 |
Depreciation and Amortization | 3,576 | 4,247 |
Net Gains on the Sale of Securities Available-for-Sale | 0 | (10) |
Net Gain on Equity Securities | (355) | 0 |
Loans Originated and Held-for-Sale | (3,378) | (14,890) |
Proceeds from the Sale of Loans Held-for-Sale | 3,620 | 14,481 |
Net Gain on the Sale of Loans | (115) | (431) |
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 155 | 197 |
Contributions to Retirement Benefit Plans | (524) | (640) |
Deferred Income Tax Benefit | (389) | (20) |
Shares Issued Under the Directors’ Stock Plan | 103 | 126 |
Stock-Based Compensation Expense | 267 | 261 |
Tax Benefit from Exercise of Stock Options | 205 | 112 |
Net Increase in Other Assets | (1,030) | (1,689) |
Net Increase in Other Liabilities | 1,980 | 1,819 |
Net Cash Provided By Operating Activities | 33,597 | 26,398 |
Cash Flows from Investing Activities: | ||
Proceeds from the Sale of Securities Available-for-Sale | 0 | 10,015 |
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 36,663 | 43,617 |
Purchases of Securities Available-for-Sale | (84,746) | (22,503) |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 49,721 | 39,062 |
Purchases of Securities Held-to-Maturity | (4,506) | (36,018) |
Net Increase in Loans | (176,607) | (156,643) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 1,078 | 830 |
Purchase of Premises and Equipment | (2,371) | (1,335) |
Proceeds from the Sale of a Subsidiary, Net | 75 | 72 |
Net (Increase) Decrease in Other Investments | (917) | 4,208 |
Net Cash Used By Investing Activities | (181,610) | (118,695) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 162,739 | 190,570 |
Net Increase (Decrease) in Short-Term Federal Home Loan Bank Borrowings | 26,000 | (90,000) |
Net Increase (Decrease) in Short-Term Borrowings | (2,463) | 25,583 |
Repayments of Federal Home Loan Bank Term Advances | (10,000) | 0 |
Purchase of Treasury Stock | (1,823) | (2,767) |
Stock Options Exercised, Net | 1,977 | 734 |
Shares Issued Under the Employee Stock Purchase Plan | 368 | 351 |
Shares Issued for Dividend Reinvestment Plans | 1,302 | 1,256 |
Cash Dividends Paid | (10,630) | (10,119) |
Net Cash Provided By Financing Activities | 167,470 | 115,608 |
Net Increase in Cash and Cash Equivalents | 19,457 | 23,311 |
Cash and Cash Equivalents at Beginning of Period | 72,838 | 57,355 |
Cash and Cash Equivalents at End of Period | 92,295 | 80,666 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 7,946 | 5,168 |
Income Taxes | 7,493 | 8,404 |
Non-cash Investing and Financing Activity: | ||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 606 | $ 1,055 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 , December 31, 2017 and September 30, 2017 ; the results of operations for the three- and nine-month periods ended September 30, 2018 and 2017 ; the consolidated statements of comprehensive income for the three- and nine-month periods ended September 30, 2018 and 2017 ; the changes in stockholders' equity for the nine -month periods ended September 30, 2018 and 2017 ; and the cash flows for the nine -month periods ended September 30, 2018 and 2017 . All such adjustments are of a normal recurring nature. 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 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. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, goodwill impairment, pension and other postretirement liabilities and an analysis of a need for a valuation allowance for deferred tax assets. 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 loan losses. In connection with the determination of the allowance for loan losses, management obtains appraisals for properties. The allowance for loan losses is management’s best estimate of probable loan losses incurred as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions. 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, 2017 , included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2017 . Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in the first nine months of 2018: ASU 2014-09 "Revenue from Contracts With Customers" (Topic 606) was adopted as of January 1, 2018. For additional information, see Revenue Recognition under Significant Accounting Policy Update in this Note. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10) significantly changed the income statement impact of equity investments. For Arrow, the standard became effective for the first quarter of 2018, and requires that equity investments be measured at fair value, with changes in fair value recognized in net income. The cumulative effect of the January 1, 2018 adoption was an increase to retained earnings of $331 thousand with a corresponding decrease to Accumulated Other Comprehensive Loss. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. ASU 2016-01 also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities not make use of a practicability exception in determining the fair value of loans. Accordingly, the Company refined the calculation used to determine the disclosed fair value of its loans as part of adopting this standard. See Note 9 to the unaudited interim consolidated financial statements titled Fair Value of Financial Instruments. ASU 2016-15 "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments" (Topic 230) will reduce existing diversity in practice with respect to eight specific cash flow issues. Arrow adopted this ASU in the first quarter of 2018. ASU 2017-01 "Business Combinations" (Topic 805) defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard became effective in the first quarter of 2018. This update had no effect on its accounting for acquisitions and dispositions of businesses. ASU 2017-07 "Compensation-Retirement Benefits" (Topic 715) improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. For Arrow, the standard became effective in the first quarter of 2018. In accordance with the practical expedient adoption method, for all periods presented Arrow used the amounts disclosed in the retirement plans footnote for the prior period retrospective reclassification of the non-service cost components from salaries and benefits to other operating expenses. The adoption of this change in accounting for pension costs did not have a material impact on its financial position or the results of operations. ASU 2017-09 "Compensation-Stock Compensation" (Topic 718) provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard became effective in the first quarter of 2018. The adoption of this change in accounting for share-based payment awards did not have a material impact on its financial position or the results of operations in periods subsequent to its adoption. The following accounting standards have been issued and will become effective for the Company at a future date: In February 2016, the FASB issued ASU 2016-02, "Leases" (Topic 842) which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. For a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option or not exercise an option to terminate the lease. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): "Land Easement Practical Expedient for Transition to Topic 842". In July 2018, the FASB issued ASU 2018-10 "Codification Improvements to Topic 842, Leases" which provided clarification on certain components of the original guidance, including that the rate implicit in the lease cannot be less than zero. Also in July 2018, the FASB issued ASU 2018-11 "Targeted Improvements" to Leases (Topic 842) which amends the original guidance to allow for the adoption of this standard to be applied retrospectively at the beginning of the period of adoption, which will be January 1, 2019 for Arrow, through a cumulative-effect adjustment to the balance sheet, including retained earnings, as of January 1, 2019. Practical expedients may be elected that would not require Arrow to reassess whether an existing contract contains a lease, to reassess existing leases between operating leases and finance leases and to not reassess initial direct costs for any existing leases. If elected, these practical expedients must be applied together. An entity may also elect a practical expedient, which must be applied consistently to all of its leases, to use hindsight in determining the lease term when considering lessee options to extend or terminate the lease and in assessing impairment in the right-of-use asset. In addition, a lessor may make an accounting policy election, by class of underlying asset, to not separate nonlease components from lease components and account for these components as a single lease component. Early adoption of this standard is permitted in any interim or annual period. The Company expects to adopt the new lease standard on January 1, 2019 through a cumulative-effect adjustment without revising prior comparative periods, and elect the practical expedients available to effectively account for leases commenced prior to the effective date. The Company expects assets and liabilities to increase between $7 million and $9 million at the January 1, 2019 adoption date, with no material impact to operating lease expense in its Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" (Topic 326) which will change the way financial entities measure expected credit losses for financial assets, primarily loans. Under this ASU, the "incurred loss" model will be replaced with an "expected loss" model which will recognize losses over the life of the instrument and requires consideration of a broader range of reasonable and supportable information. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under this ASU, the amount of the credit loss is carried as a valuation allowance and can be reversed. The standard also requires expanded credit quality disclosures. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new current expected credit loss ("CECL") methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The FASB’s Transition Research Group for credit losses still has several outstanding unresolved questions, some of which may have a significant impact on CECL calculations. The Company continues its implementation efforts with the development and testing of various methods within its core model, developing forecast scenarios, monitoring of guidance interpretations and consideration of relevant internal controls and processes. This will likely have the effect of increasing the allowance for loan and lease losses and reducing shareholders' equity, the extent of which will depend upon the nature and characteristics of the Company's loan portfolio and economic conditions and forecasts at the adoption date. The Company expects to remain a well-capitalized financial institution under current regulatory calculations. In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other" (Topic 350) which simplifies the procedures for evaluating impairment of goodwill. Prior to the adoption of this standard, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under this ASU, entities will perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect the assessment of goodwill impairment since the Company currently performs the analysis of comparing carrying value to fair value of its reporting units that have goodwill and the Company has not had to perform a Step 2 Impairment Test to date. In March 2017, the FASB issued ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" which amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019. The Company does not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on its financial position or the results of operations in periods subsequent to its adoption. In August 2018, the FASB issued ASU 2018-13 "Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" which as part of its disclosure framework, the FASB has eliminated, amended and added disclosure requirements for fair value measurements. The following disclosure requirements were eliminated: Amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy of the timing of transfers between levels of the fair value hierarchy; the valuation processes for Level 3 fair value measurements. For public companies such as Arrow, the following new disclosures will be required: Changes in unrealized gains and losses for the period included in other comprehensive income (OCI); the range and weighted average of significant unobservable inputs used; alternatively, a company may choose to disclose other quantitative information if it determines that it is a more reasonable and rational method that reflects the distribution of unobservable inputs used. For Arrow, the standard becomes effective in the first quarter of 2020. The Company does not expect that the adoption of this change in fair value disclosure will have a material impact on its financial position or the results of operations in periods subsequent to its adoption. In August 2018, the FASB issued ASU 2018-14 "Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" which applies to all companies that provide defined benefit pension or other postretirement benefit plans for their employees. Certain disclosure requirements have been eliminated such as reporting the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next year, and reporting the effects of a one-percentage-point change in the assumed healthcare cost trend rate on the aggregate of the service cost and interest cost components of net periodic benefit cost and on the benefit obligation for postretirement healthcare benefits. New required disclosures for reporting the weighted-average interest rate used to credit cash balance and similar plans that have a promised interest credit, the reasons for significant gains and losses affecting benefit obligations and other requirements for reporting aggregate information related to pension plans. For Arrow, the standard becomes effective at December 31, 2020. The Company does not expect that the adoption of this change affecting defined benefit plan disclosures will have a material impact on its financial position or the results of operations. In August 2018, the FASB issued ASU 2018-15 "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" which will require companies to defer potentially significant, specified implementation costs incurred in a cloud computing arrangement that are often expensed under current US GAAP. For Arrow, the standard becomes effective at January 1, 2020. The Company is in the process of assessing the impact of this new accounting standard on its financial position and the results of operations in periods subsequent to its adoption. Significant Accounting Policy Update: Revenue Recognition - Accounting Standard Codification ("ASC") Topic 606, "Revenue from Contracts with Customers," establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle of Topic 606 requires an entity to recognize revenue in a way that depicts the transfer of goods or services promised to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services as performance obligations are satisfied. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective approach. The Company has determined that revenue from specific types of fiduciary activities and insurance commissions are within the scope of this guidance. Under prior GAAP, revenue from fiduciary activities was recognized from settling client estates over the time period the work was performed. With the adoption of Topic 606, revenue is now recognized when the performance obligation is completed, which is when the settlement of the client estate is closed. The impact of this change in revenue recognition was not material to the Company's consolidated financial statements. Under prior GAAP when clients elected to pay premiums on property and casualty insurance policies in installments, revenue was recognized when the premiums were billed. With the adoption of Topic 606, this type of revenue is recognized when the performance obligation is substantially completed, i.e., when the insurance policy is issued. The impact of this change in revenue recognition was not material to the Company's consolidated financial statements. The cumulative effect of the adoption of Topic 606 related to the previously described fiduciary activities and insurance commissions was a decrease in retained earnings by $102 thousand as of January 1, 2018. The majority of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities which are presented in its consolidated income statements as components of net interest income. The following is a description of principal activities from which the Company generates its revenue from noninterest income sources that are within the scope of ASC Topic 606: Income from Fiduciary Activities: represents revenue derived mainly through the management of client investments which is based on the market value of the covered assets and the fee schedule contained in the applicable account management agreement. Since the revenue is mainly based on the market value of assets, this amount can be volatile as financial markets increase and decrease based on various economic factors. The terms of the account management agreements generally specify that the performance obligations are completed each quarter. Accordingly, the Company mainly recognizes revenue from fiduciary activities on a quarterly basis. Fees for Other Services to Customers: represents general service fees for monthly deposit account maintenance and account activity plus fees from other deposit-based services. Revenue is recognized when the performance obligation is completed, which is generally on a monthly basis for account maintenance services, or upon the completion of a deposit-related transaction. Payment for these performance obligations is generally received at the time the performance obligations are satisfied. Insurance Commissions: represents commissions and fees paid by insurance carriers for both property and casualty insurance policies, and for services performed for employment benefits clients. Revenue from the property and casualty insurance business is recognized when the performance obligation is satisfied, which is generally the effective date of the bound coverage since there are no significant performance obligations remaining. Revenue from the employment benefit brokerage business is recognized when the benefit servicing performance obligations are satisfied, generally on a monthly basis. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) Management determines the appropriate classification of securities at the time of purchase. Securities reported as held-to-maturity are those debt securities which Arrow has both the positive intent and ability to hold to maturity and are stated at amortized cost. Securities available-for-sale are reported at fair value, with unrealized gains and losses reported in accumulated other comprehensive income or loss, net of taxes. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. The following table is the schedule of Available-For-Sale Securities at September 30, 2018 , December 31, 2017 and September 30, 2017 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,135 $ 2,545 $ 284,236 $ 1,000 $ — $ 347,916 Available-For-Sale Securities, at Fair Value 59,602 2,548 277,461 800 — 340,411 Gross Unrealized Gains — 3 201 — — 204 Gross Unrealized Losses 533 — 6,976 200 — 7,709 Available-For-Sale Securities, Pledged as Collateral 219,587 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 42,621 $ 1,346 $ 1,024 $ — $ 44,991 From 1 - 5 Years 17,514 719 164,808 — 183,041 From 5 - 10 Years — — 103,597 — 103,597 Over 10 Years — 480 14,807 1,000 16,287 Maturities of Debt Securities, at Fair Value: Within One Year $ 42,410 $ 1,346 $ 1,025 $ — $ 44,781 From 1 - 5 Years 17,192 722 158,846 — 176,760 From 5 - 10 Years — — 102,800 — 102,800 Over 10 Years — 480 14,790 800 16,070 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 4,831 $ 1,120 $ 167,718 $ — $ — $ 173,669 12 Months or Longer 54,771 — 71,433 800 — 127,004 Total $ 59,602 $ 1,120 $ 239,151 $ 800 $ — $ 300,673 Number of Securities in a Continuous Loss Position 14 5 90 1 — 110 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 193 $ — $ 3,165 $ — $ — $ 3,358 12 Months or Longer 340 — 3,811 200 — 4,351 Total $ 533 $ — $ 6,976 $ 200 $ — $ 7,709 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,135 US Agency Obligations, 59,602 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities US Government Agency Securities, at Amortized Cost $ 74,160 US Government Agency Securities, at Fair Value 74,098 Government Sponsored Entity Securities, at Amortized Cost 210,076 Government Sponsored Entity 203,363 December 31, 2017 Available-For-Sale Securities, at Amortized Cost $ 60,328 $ 10,351 $ 229,077 $ 1,000 $ 1,120 $ 301,876 Available-For-Sale Securities, at Fair Value 59,894 10,349 227,596 800 1,561 300,200 Gross Unrealized Gains — 9 485 — 441 935 Gross Unrealized Losses 434 11 1,966 200 — 2,611 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 183,052 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 20,348 $ 8,498 $ 70,930 $ — $ — $ 99,776 12 Months or Longer 39,546 — 80,759 800 — 121,105 Total $ 59,894 $ 8,498 $ 151,689 $ 800 $ — $ 220,881 Number of Securities in a Continuous Loss Position 14 36 55 1 — 106 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 172 $ 11 $ 363 $ — $ — $ 546 12 Months or Longer 262 — 1,603 200 — 2,065 Total $ 434 $ 11 $ 1,966 $ 200 $ — $ 2,611 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,328 US Agency Obligations, 59,894 US Government Agency Securities, at Amortized Cost $ 40,832 US Government Agency Securities, at Fair Value 40,832 Government Sponsored Entity Securities, at Amortized Cost 188,245 Government Sponsored Entity 186,764 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,976 $ 11,875 $ 152,858 $ 2,500 $ 1,120 $ 315,329 Available-For-Sale Securities, at Fair Value 146,978 11,902 152,806 2,299 1,474 315,459 Gross Unrealized Gains 152 27 964 — 354 1,497 Gross Unrealized Losses 150 — 1,016 201 — 1,367 Available-For-Sale Securities, Pledged as Collateral 206,637 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 89,563 $ — $ 85,091 $ 500 $ — $ 175,154 12 Months or Longer — — — 1,800 — 1,800 Total $ 89,563 $ — $ 85,091 $ 2,300 $ — $ 176,954 Number of Securities in a Continuous Loss Position 23 — 31 3 — 57 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 150 $ — $ 1,016 $ — $ — $ 1,166 12 Months or Longer — — — 201 — 201 Total $ 150 $ — $ 1,016 $ 201 $ — $ 1,367 Disaggregated Details: US Treasury Obligations, $ 64,711 US Treasury Obligations, $ 64,730 US Agency Obligations, $ 82,265 US Agency Obligations, 82,248 US Government Agency Securities, at Amortized Cost $ 503 US Government Agency Securities, at Fair Value 505 Government Sponsored Entity Securities, at Amortized Cost 152,355 Government Sponsored Entity 152,301 The following table is the schedule of Held-To-Maturity Securities at September 30, 2018 , December 31, 2017 and September 30, 2017 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 239,367 $ 50,585 $ — $ 289,952 Held-To-Maturity Securities, at Fair Value 233,557 49,162 — 282,719 Gross Unrealized Gains 261 — — 261 Gross Unrealized Losses 6,071 1,423 — 7,494 Held-To-Maturity Securities, Pledged as Collateral 268,229 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 19,381 $ — $ — $ 19,381 From 1 - 5 Years 93,084 48,039 — 141,123 From 5 - 10 Years 124,277 2,546 — 126,823 Over 10 Years 2,625 — — 2,625 Maturities of Debt Securities, at Fair Value: Within One Year $ 19,396 $ — $ — $ 19,396 From 1 - 5 Years 92,199 46,688 — 138,887 From 5 - 10 Years 119,356 2,474 — 121,830 Over 10 Years 2,606 — — 2,606 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 95,944 $ 46,375 $ — $ 142,319 12 Months or Longer 86,378 2,787 — 89,165 Total $ 182,322 $ 49,162 $ — $ 231,484 Number of Securities in a Continuous Loss Position 535 47 — 582 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,443 $ 1,303 $ — $ 2,746 12 Months or Longer 4,628 120 — 4,748 Total $ 6,071 $ 1,423 $ — $ 7,494 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,147 US Government Agency Securities, at Fair Value 2,222 Government Sponsored Entity Securities, at Amortized Cost 47,438 Government Sponsored Entity 46,940 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2017 Held-To-Maturity Securities, at Amortized Cost $ 275,530 $ 60,377 $ — $ 335,907 Held-To-Maturity Securities, at Fair Value 275,353 60,548 — 335,901 Gross Unrealized Gains 1,691 269 — 1,960 Gross Unrealized Losses 1,868 98 — 1,966 Held-To-Maturity Securities, Pledged as Collateral 318,622 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 55,648 $ 13,764 $ — $ 69,412 12 Months or Longer 65,152 3,257 — 68,409 Total $ 120,800 $ 17,021 $ — $ 137,821 Number of Securities in a Continuous Loss Position 352 14 — 366 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 442 $ 56 $ — $ 498 12 Months or Longer 1,425 43 — 1,468 Total $ 1,867 $ 99 $ — $ 1,966 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,680 US Government Agency Securities, at Fair Value 2,661 Government Sponsored Entity Securities, at Amortized Cost 57,697 Government Sponsored Entity 57,887 September 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 277,738 $ 63,788 $ — $ 341,526 Held-To-Maturity Securities, at Fair Value 279,384 64,515 — 343,899 Gross Unrealized Gains 2,977 738 — 3,715 Gross Unrealized Losses 1,331 11 — 1,342 Held-To-Maturity Securities, Pledged as Collateral 325,096 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 78,238 $ 3,544 $ — $ 81,782 12 Months or Longer 13,331 — — 13,331 Total $ 91,569 $ 3,544 $ — $ 95,113 Number of Securities in a Continuous Loss Position 252 7 — 259 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,034 $ 11 $ — $ 1,045 12 Months or Longer 297 — — 297 Total $ 1,331 $ 11 $ — $ 1,342 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2017 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,792 US Government Agency Securities, at Fair Value 2,799 Government Sponsored Entity Securities, at Amortized Cost 60,996 Government Sponsored Entity 61,716 In the tables above, maturities of mortgage-backed securities are included based on their expected average lives. Actual maturities will differ from the table above because issuers may have the right to call or prepay obligations with, or without, prepayment penalties. Securities in a continuous loss position, in the tables above for September 30, 2018 , December 31, 2017 and September 30, 2017 , do not reflect any deterioration of the credit worthiness of the issuing entities. The state and municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. Obligations issued by school districts are supported by state aid. An in-house credit analysis is performed for municipal securities based upon data that has been submitted by the issuers to the New York State Comptroller. That analysis reflects satisfactory credit worthiness of the municipalities. Subsequent to September 30, 2018 , and through the date of the filing of this Quarterly Report on Form 10-Q, Arrow held no securities with significant credit deterioration. The unrealized losses on temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities. Because Arrow does not currently intend to sell any temporarily impaired securities, and because it is not more likely-than-not that the Company would be required to sell the securities prior to recovery, the impairment is considered temporary. The following table is the schedule of Equity Securities at September 30, 2018 . Upon the adoption of ASU 2016-01 effective January 1, 2018, Equity Securities are not included in Securities Available-For-Sale since unrealized gains and losses are now recorded in the Consolidated Statements of Income. Prior to January 1, 2018, Equity Securities were included in Securities Available-For-Sale. Equity Securities September 30, 2018 Equity Securities, at Fair Value $ 1,916 The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three- and nine-month periods ended September 30, 2018 : Three months ended September 30, 2018 Nine months ended September 30, 2018 Net Gain on Equity Securities $ 114 $ 355 Less: Net gain (loss) 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 $ 114 $ 355 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS (In Thousands) Loan Categories and Past Due Loans The following table presents loan balances outstanding as of September 30, 2018 , December 31, 2017 and September 30, 2017 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $201 , $327 and $1,323 as of September 30, 2018 , December 31, 2017 and September 30, 2017 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Loans Past Due 30-59 Days $ 198 $ — $ 5,651 $ 2,896 $ 8,745 Loans Past Due 60-89 Days — — 1,307 47 1,354 Loans Past Due 90 or more Days 76 807 494 1,523 2,900 Total Loans Past Due 274 807 7,452 4,466 12,999 Current Loans 126,838 469,315 686,736 830,212 2,113,101 Total Loans $ 127,112 $ 470,122 $ 694,188 $ 834,678 $ 2,126,100 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 192 $ 980 $ 1,172 Nonaccrual Loans 674 807 540 2,447 4,468 December 31, 2017 Loans Past Due 30-59 Days $ 139 $ — $ 5,891 $ 2,094 $ 8,124 Loans Past Due 60-89 Days 19 — 1,215 509 1,743 Loans Past Due 90 or more Days 99 807 513 1,422 2,841 Total Loans Past Due 257 807 7,619 4,025 12,708 Current Loans 128,992 443,441 595,208 770,421 1,938,062 Total Loans $ 129,249 $ 444,248 $ 602,827 $ 774,446 $ 1,950,770 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 6 $ 313 $ 319 Nonaccrual Loans $ 588 $ 1,530 $ 653 $ 2,755 5,526 September 30, 2017 Loans Past Due 30-59 Days $ 122 $ 442 $ 4,781 $ 1,675 $ 7,020 Loans Past Due 60-89 Days — — 914 77 991 Loans Past Due 90 or more Days 102 807 291 1,742 2,942 Total Loans Past Due 224 1,249 5,986 3,494 10,953 Current Loans 125,136 439,467 586,043 747,200 1,897,846 Total Loans $ 125,360 $ 440,716 $ 592,029 $ 750,694 $ 1,908,799 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 41 $ 926 $ 967 Nonaccrual Loans $ 609 $ 1,249 $ 507 $ 3,117 5,482 The Company disaggregates its loan portfolio into the following four categories: Commercial - The Company offers a variety of loan options to meet the specific needs of 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. 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, the Company may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees of the borrowers. Commercial Real Estate - The Company 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 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, the Company also offers commercial construction and land development loans to finance projects, primarily within the communities that we serve. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also secured by first liens on the real estate, which may include apartments, commercial structures, housing business, 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 - The Company offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. Several loans are unsecured, which carry a higher risk of loss. Also included in this category are automobile loans. The Company primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Indirect consumer loans are underwritten on a secured basis using the underlying collateral being financed. Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. The Company originates adjustable-rate and fixed-rate one-to-four-family residential real estate loans for the construction, purchase or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in the Company’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. The Company’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 the Company'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, the Company 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. The Company's policy allows for a maximum loan to value ratio of 80%, although periodically higher advances are allowed. The Company 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 Loan Losses The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 Charge-offs — — (300 ) (25 ) (325 ) Recoveries — — 102 — 102 Provision 99 81 551 (145 ) 586 September 30, 2018 $ 1,043 $ 5,919 $ 8,690 $ 4,351 $ 20,003 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 Charge-offs — (342 ) (280 ) — (622 ) Recoveries 1 — 74 — 75 Provision (46 ) 446 509 (109 ) 800 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ 17,695 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (895 ) (49 ) (960 ) Recoveries 1 12 403 — 416 Provision (815 ) 1,403 1,578 (205 ) 1,961 September 30, 2018 $ 1,043 $ 5,919 $ 8,690 $ 4,351 $ 20,003 December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ 17,012 Charge-offs (2 ) (342 ) (847 ) (6 ) (1,197 ) Recoveries 8 — 292 — 300 Provision (143 ) (248 ) 2,043 (72 ) 1,580 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ 17,695 September 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 84 $ 45 $ — $ 48 $ 177 Allowance for loan losses - Loans Collectively Evaluated for Impairment 959 5,874 8,690 4,303 19,826 Ending Loan Balance - Individually Evaluated for Impairment 489 812 109 2,013 3,423 Ending Loan Balance - Collectively Evaluated for Impairment $ 126,623 $ 469,310 $ 694,079 $ 832,665 $ 2,122,677 December 31, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 94 $ 2 $ — $ 10 $ 106 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,779 4,502 7,604 4,595 18,480 Ending Loan Balance - Individually Evaluated for Impairment 489 1,537 95 1,562 3,683 Ending Loan Balance - Collectively Evaluated for Impairment $ 128,760 $ 442,711 $ 602,732 $ 772,884 $ 1,947,087 September 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 104 $ — $ — $ 34 $ 138 Allowance for loan losses - Loans Collectively Evaluated for Impairment 776 5,087 7,608 4,086 17,557 Ending Loan Balance - Individually Evaluated for Impairment 489 1,543 104 1,139 3,275 Ending Loan Balance - Collectively Evaluated for Impairment $ 124,871 $ 439,172 $ 591,925 $ 749,556 $ 1,905,524 Through the provision for loan losses, an allowance for loan losses is maintained that reflects the best estimate of the incurred risk of loss in the Company’s loan portfolio as of the balance sheet date. Additions are made to the allowance for loan losses through a periodic provision for loan losses. Actual loan losses are charged against the allowance for loan losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for loan losses. 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 Company's independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in the commercial loan portfolio. The Company uses a two-step process to determine the provision for loan losses and the amount of the allowance for loan losses. The Company performs an evaluation of impaired loans on a quarterly basis. Impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. These impaired loans are generally considered to be collateral dependent with the charge-off, if any, determined based on the value of the collateral less estimated costs to sell. The remainder of the portfolio is evaluated on a pooled basis, as described below. For each homogeneous loan pool, the Company estimates a total loss factor based on the historical net loss rates adjusted for applicable qualitative factors. The total loss factors assigned to each loan category are updated on a quarterly basis. For the commercial and commercial real estate categories, the loan categories are further segregated by credit risk profile (pools of loans graded pass, special mention and accruing substandard). Additional description of the credit risk classifications is detailed in the Credit Quality Indicators section of this note. The annualized historical net loss rate is determined for each loan category using a trailing three-year net charge-off average. While historical net loss experience provides a reasonable starting point for analysis, historical net losses, or even recent trends in net losses, do not by themselves form a sufficient basis to determine the appropriate level of the allowance for loan losses. Therefore, the Company also considers and adjusts historical net loss factors for qualitative factors that impact the incurred risk of loss associated with the loan categories within the total loan portfolio. These include: • Changes in the volume and severity of past due, nonaccrual and adversely classified loans • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the value of the underlying collateral for collateral dependent loans • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses • Changes in the quality of the loan review system • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio • The existence and effect of any concentrations of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool Credit Quality Indicators The following table presents the credit quality indicators by loan category at September 30, 2018 , December 31, 2017 and September 30, 2017 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 119,217 $ 440,114 $ — $ — $ 559,331 Special Mention 5,949 — — — 5,949 Substandard 1,946 29,201 — — 31,147 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 693,648 $ 832,231 $ 1,525,879 Nonperforming — — 540 2,447 2,987 December 31, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 124,961 $ 417,362 $ — $ — $ 542,323 Special Mention 1,341 177 — — 1,518 Substandard 2,947 25,902 — — 28,849 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 602,168 $ 771,584 $ 1,373,752 Nonperforming — — 659 3,068 3,727 September 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,622 $ 411,685 $ — $ — $ 532,307 Special Mention 1,394 1,401 — — 2,795 Substandard 3,344 26,822 — — 30,166 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 591,499 $ 746,652 $ 1,338,151 Nonperforming — — 530 4,043 4,573 For the purposes of the table above, nonperforming consumer and residential loans are those loans on nonaccrual status or are 90 days or more past due and still accruing interest. For the allowance calculation, we use an internally developed system of five credit quality indicators 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 the bank 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 (i.e. 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. Impaired Loans The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Recorded Investment: With No Related Allowance $ — $ 5 $ 108 $ 1,712 $ 1,825 With a Related Allowance 475 801 — 346 1,622 Unpaid Principal Balance: With No Related Allowance — 5 109 1,733 1,847 With a Related Allowance 489 807 — 280 1,576 December 31, 2017 Recorded Investment: With No Related Allowance $ — $ 781 $ 94 $ 1,269 $ 2,144 With a Related Allowance 485 725 — 333 1,543 Unpaid Principal Balance: With No Related Allowance — 816 95 1,274 2,185 With a Related Allowance 489 721 — 288 1,498 September 30, 2017 Recorded Investment: With No Related Allowance $ — $ 818 $ 104 $ 851 $ 1,773 With a Related Allowance 489 725 — 288 1,502 Unpaid Principal Balance: With No Related Allowance — 818 90 850 $ 1,758 With a Related Allowance 489 723 — 288 1,500 For the Quarter Ended: September 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 7 $ 104 $ 1,371 $ 1,482 With a Related Allowance 478 794 — 350 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 998 $ 96 $ 827 $ 1,921 With a Related Allowance 496 363 — 288 1,147 Interest Income Recognized: With No Related Allowance — — 1 — 1 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: September 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 393 $ 101 $ 1,491 $ 1,985 With a Related Allowance 480 763 — 340 1,583 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — 20 20 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 854 $ 98 $ 975 $ 1,927 With a Related Allowance 245 363 — 144 752 Interest Income Recognized: With No Related Allowance — — 3 — 3 With a Related Allowance — — — 4 4 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — At September 30, 2018 , December 31, 2017 and September 30, 2017 , all impaired loans were considered to be collateral dependent and were therefore evaluated for impairment based on the fair value of collateral less estimated cost to sell. Interest income recognized in the table above, represents income earned after the loans became impaired and includes restructured loans in compliance with their modified terms and nonaccrual loans where we have recognized interest income on a cash basis. 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, 2018 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 16 $ — $ 16 Post-Modification Outstanding Recorded Investment — — 16 — 16 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 725 $ — $ 25 $ — $ 750 Post-Modification Outstanding Recorded Investment 725 — 25 — 750 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: September 30, 2018 Number of Loans — — 5 — 5 Pre-Modification Outstanding Recorded Investment $ — $ — $ 44 $ — $ 44 Post-Modification Outstanding Recorded Investment — — 44 — 44 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2017 Number of Loans 2 — 6 — 8 Pre-Modification Outstanding Recorded Investment $ 1,228 $ — $ 51 $ — $ 1,279 Post-Modification Outstanding Recorded Investment 1,228 — 51 — 1,279 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — In general, loans requiring modification are restructured to accommodate the projected cash-flows of the borrower. Such modifications may involve a reduction of the interest rate, a significant deferral of payments or forgiveness of a portion of the outstanding principal balance. As indicated in the table above, no loans modified during the preceding twelve months subsequently defaulted as of September 30, 2018 . |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES (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, 2018 , December 31, 2017 and September 30, 2017 : Commitments to Extend Credit and Letters of Credit September 30, 2018 December 31, 2017 September 30, 2017 Notional Amount: Commitments to Extend Credit $ 335,587 $ 315,256 $ 316,449 Standby Letters of Credit 4,016 3,526 3,672 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 4 23 18 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. These 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 expected to expire without being 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 commitments 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 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, 2018 , December 31, 2017 and September 30, 2017 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. Company policies governing loan collateral apply to standby letters of credit at the time of credit extension. Loan-to-value ratios 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 typically range from 1% to 3% of the notional amount. Fees are collected upfront and are amortized over the life of the commitment. The carrying amount and fair values of Arrow's standby letters of credit at September 30, 2018 , December 31, 2017 and September 30, 2017 , 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. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME (In Thousands) The following table presents the components of other comprehensive income for the three- and nine-month periods ended September 30, 2018 and 2017 : Schedule of Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (1,203 ) $ 306 (897 ) (5,388 ) $ 1,371 (4,017 ) Amortization of Net Retirement Plan Actuarial Loss 81 (21 ) 60 244 (63 ) 181 Accretion of Net Retirement Plan Prior Service Credit 27 (7 ) 20 81 (21 ) 60 Other Comprehensive Loss $ (1,095 ) $ 278 $ (817 ) $ (5,063 ) $ 1,287 $ (3,776 ) 2017 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 6 $ 3 9 749 $ (284 ) 465 Reclassification Adjustment for Securities Gains Included in Net Income (10 ) 4 (6 ) (10 ) 4 (6 ) Amortization of Net Retirement Plan Actuarial Loss 179 (115 ) 64 537 (292 ) 245 Accretion of Net Retirement Plan Prior Service Credit (3 ) 1 (2 ) (8 ) 3 (5 ) Other Comprehensive Income $ 172 $ (107 ) $ 65 $ 1,268 $ (569 ) $ 699 The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) Other comprehensive income or loss before reclassifications (897 ) — — (897 ) Amounts reclassified from accumulated other comprehensive income 60 20 80 Net current-period other comprehensive income (loss) (897 ) 60 20 (817 ) September 30, 2018 $ (5,598 ) $ (6,199 ) $ (824 ) $ (12,621 ) June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) Other comprehensive income or loss before reclassifications 9 — — 9 Amounts reclassified from accumulated other comprehensive income (6 ) 64 (2 ) 56 Net current-period other comprehensive income (loss) 3 64 (2 ) 65 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) For the Year-To-Date periods ended: December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (4,017 ) — — (4,017 ) Amounts reclassified from accumulated other comprehensive income — 181 60 241 Net current-period other comprehensive income (4,017 ) 181 60 (3,776 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) September 30, 2018 $ (5,598 ) $ (6,199 ) $ (824 ) $ (12,621 ) December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 465 — — 465 Amounts reclassified from accumulated other comprehensive income (6 ) 245 (5 ) 234 Net current-period other comprehensive income 459 245 (5 ) 699 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) (1) All amounts are net of tax. The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (27 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (81 ) (1) Salaries and Employee Benefits (108 ) Total before Tax 28 Provision for Income Taxes $ (80 ) Net of Tax Total reclassifications for the period $ (80 ) Net of Tax September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (1) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (1) Salaries and Employee Benefits (176 ) Total before Tax 114 Provision for Income Taxes $ (62 ) Net of Tax Total reclassifications for the period $ (56 ) Net of Tax For the Year-to-date periods ended: September 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (81 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (244 ) (1) Salaries and Employee Benefits (325 ) Total before Tax 84 Provision for Income Taxes $ (241 ) Net of Tax Total reclassifications for the period $ (241 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs 8 (1) Salaries and Employee Benefits Actuarial gains/(losses) $ (537 ) (1) Salaries and Employee Benefits (529 ) Total before Tax 289 Provision for Income Taxes $ (240 ) Net of Tax Total reclassifications for the period $ (234 ) Net of Tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION (Dollars In Thousands, Except Share and Per Share Amounts) Arrow has established three stock-based compensation plans: an Incentive and Non-qualified Stock Option Plan (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 27, 2018 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 presents the roll forward of stock options issued pursuant to the Long Term Incentive Plan by Shares and Weighted Average Exercise Prices. Roll-Forward of Shares Outstanding: Outstanding at January 1, 2018 356,540 Granted 56,843 Exercised (94,742 ) Forfeited (14,953 ) Outstanding at September 30, 2018 303,688 Exercisable at Period-End 185,547 Vested and Expected to Vest 118,141 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2018 $ 23.42 Granted 29.95 Exercised 20.85 Forfeited 26.61 Outstanding at September 30, 2018 25.24 Exercisable at Period-End 22.47 Vested and Expected to Vest 29.59 Schedule of Other Long Term Incentive Plan Information Grants Issued During 2018 - Weighted Average Information: Fair Value $ 5.59 Fair Value Assumptions: Dividend Yield 2.98 % Expected Volatility 21.55 % Risk Free Interest Rate 2.68 % Expected Lives (in years) 6.98 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. 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 presents the roll forward of restricted stock units by units and weighted average grant-date fair value. Roll-Forward of Restricted Stock Units Non-vested at January 1, 2018 — Granted 3,377 Vested — Canceled — Non-vested at September 30, 2018 3,377 Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: Non-vested at January 1, 2018 $ — Granted 32.57 Vested — Canceled — Non-vested at September 30, 2018 32.57 The following table presents information on the amounts expensed for the periods ended September 30, 2018 and 2017 : Share-Based Compensation Expense For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Share-Based Compensation Expense $ 89 $ 90 $ 267 $ 262 Employee Stock Purchase Plan Arrow sponsors an ESPP under which employees purchase Arrow's common stock at a 5% discount below market price. 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. Substantially all employees of Arrow and its subsidiaries are eligible to participate upon satisfaction of applicable service requirements. The ESOP borrowed funds from one of Arrow’s subsidiary banks to purchase outstanding shares of Arrow’s common stock. The notes require annual payments of principal and interest through 2018. As the debt is repaid, shares are released from collateral based on the proportion of debt paid to total debt outstanding for the year and allocated to active employees. In addition, the Company makes additional cash contributions to the Plan each year. Shares pledged as collateral are reported as unallocated ESOP shares in stockholders' equity. As shares are released from collateral, Arrow reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings per share computations. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Retirement Plans | RETIREMENT PLANS (Dollars in Thousands) Arrow sponsors qualified and nonqualified 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 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. 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 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 for automatic increases of Company contributions each year is based on the increase in inflation and is limited to a maximum of 5% . As of December 31, 2017, Arrow utilized the mortality assumption from the RP-2014 Mortality Table for annuitants and non-annuitants but updated the projected generational mortality improvements by using Scale MP-2017. Revision of this assumption effective December 31, 2016 resulted in a decrease in the Company's pension and postretirement liabilities. The following tables provide the components of net periodic benefit costs for the three - and nine-month periods ended September 30, 2018 and 2017 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended September 30, 2018: Service Cost 1 $ 389 $ 104 $ 34 Interest Cost 2 400 48 81 Expected Return on Plan Assets 2 (841 ) — — Amortization of Prior Service (Credit) Cost 2 (12 ) 14 25 Amortization of Net Loss 2 48 33 — Net Periodic (Benefit) Cost $ (16 ) $ 199 $ 140 Plan Contributions During the Period $ — $ 116 $ 56 For the Three Months Ended September 30, 2017: Service Cost 1 $ 350 $ 10 $ 37 Interest Cost 2 362 55 75 Expected Return on Plan Assets 2 (800 ) — — Amortization of Prior Service (Credit) Cost 2 (14 ) 14 (3 ) Amortization of Net Loss 2 148 31 — Net Periodic (Benefit) Cost $ 46 $ 110 $ 109 Plan Contributions During the Period $ — $ 116 $ 65 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2018: Service Cost 1 $ 1,168 $ 311 $ 102 Interest Cost 2 1,199 152 248 Expected Return on Plan Assets 2 (2,522 ) — — Amortization of Prior Service (Credit) Cost 2 (37 ) 43 75 Amortization of Net Loss 2 145 99 — Net Periodic (Benefit) Cost $ (47 ) $ 605 $ 425 Plan Contributions During the Period $ — $ 349 $ 175 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Nine Months Ended September 30, 2017: Service Cost 1 $ 1,050 $ 30 $ 110 Interest Cost 2 1,085 164 224 Expected Return on Plan Assets 2 (2,399 ) — — Amortization of Prior Service (Credit) Cost 2 (43 ) 43 (8 ) Amortization of Net Loss 2 443 94 — Net Periodic (Benefit) Cost $ 136 $ 331 $ 326 Plan Contributions During the Period $ — $ 345 $ 295 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 We are not required to make a contribution to the qualified pension plan in 2018 , and currently, we do not expect to make additional contributions in 2018 . Arrow makes contributions to its other post-retirement benefit plans in an amount equal to benefit payments for the year. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 . All share and per share amounts have been adjusted for the September 27, 2018 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Earnings Per Share - Basic: Net Income $ 9,260 $ 7,416 $ 27,521 $ 21,255 Weighted Average Shares - Basic 14,431 14,305 14,393 14,306 Earnings Per Share - Basic $ 0.64 $ 0.52 $ 1.91 $ 1.49 Earnings Per Share - Diluted: Net Income $ 9,260 $ 7,416 $ 27,521 $ 21,255 Weighted Average Shares - Basic 14,431 14,305 14,393 14,306 Dilutive Average Shares Attributable to Stock Options 89 80 86 95 Weighted Average Shares - Diluted 14,520 14,385 14,479 14,401 Earnings Per Share - Diluted $ 0.64 $ 0.52 $ 1.90 $ 1.48 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS (In Thousands) FASB ASC Subtopic 820-10 defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. We do not have any 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, 2018 were securities available-for-sale and equity securities and for December 31, 2017 and September 30, 2017 securities available-for-sale. 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 In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Life-to-Date Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,602 $ — $ 59,602 $ — State and Municipal Obligations 2,548 — 2,548 — Mortgage-Backed Securities 277,461 — 277,461 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 340,411 — 340,411 — Equity Securities 1,916 — 1,916 — Total Securities Measured on a Recurring Basis $ 342,327 $ — $ 342,327 $ — December 31, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,894 $ — $ 59,894 $ — State and Municipal Obligations 10,349 — 10,349 — Mortgage-Backed Securities 227,596 — 227,596 — Corporate and Other Debt Securities 800 — 800 — Equity Securities 1,561 — 1,561 — Total Securities Available-for Sale $ 300,200 $ — $ 300,200 $ — September 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 146,978 $ 64,730 $ 82,248 $ — State and Municipal Obligations 11,902 — 11,902 — Mortgage-Backed Securities 152,806 — 152,806 — Corporate and Other Debt Securities 2,299 — 2,299 — Equity Securities 1,474 — 1,474 — Total Securities Available-for Sale $ 315,459 $ 64,730 $ 250,729 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2018 Collateral Dependent Impaired Loans $ 857 $ — $ — $ 857 $ (58 ) Other Real Estate Owned and Repossessed Assets, Net 1,220 — — 1,220 (559 ) December 31, 2017 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,847 $ — — 1,847 $ (569 ) September 30, 2017 Collateral Dependent Impaired Loans $ 1,502 $ — $ — $ 1,502 $ (138 ) Other Real Estate Owned and Repossessed Assets, Net 1,713 — — 1,713 (655 ) We determine the fair value of financial instruments 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; • 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). The Company determined that the previously reported U.S. Government & Agency Obligations of $59,894 were incorrectly classified as Level 1 securities, instead of the correct classification as Level 2 securities. The Company corrected the fair value leveling disclosure the year ended December 31, 2017 to reflect the correction of this classification. This error had no impact on the fair value of U.S. Government & Agency Obligations or the total securities available-for-sale. There were no transfers between Levels 1, 2 and 3 for the three months ended September 30, 2018 , December 31, 2017 and September 30, 2017 . 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. Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis The fair value of collateral dependent impaired 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 on an annual basis, with no impairment recognized for these assets at September 30, 2018 , December 31, 2017 and September 30, 2017 . 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, effective for the first quarter of 2018, 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 residential real estate loans vs. other loans. Then a credit loss component is determined utilizing the credit loss assumptions used in the allowance for loan and lease 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. Fair value for nonperforming loans is generally based on recent external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. 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 estimated based on the discounted value of contractual cash flows. The discount rate is estimated using current rates on FHLBNY advances with similar maturities and call features. 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 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 Book Value Fair Value Level 1 Level 2 Level 3 September 30, 2018 Cash and Cash Equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities Available-for-Sale 340,411 340,411 — 340,411 — Securities Held-to-Maturity 289,952 282,719 — 282,719 — Equity Securities 1,916 1,916 — 1,916 — Federal Home Loan Bank and Federal Reserve Bank Stock 10,866 10,866 — 10,866 — Net Loans 2,106,097 2,030,278 — — 2,030,278 Accrued Interest Receivable 8,028 8,028 — 8,028 — Deposits 2,407,855 2,398,987 — 2,398,987 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 62,503 62,503 — 62,503 — Federal Home Loan Bank Overnight Advances 131,000 131,000 — 131,000 — Federal Home Loan Bank Term Advances 45,000 44,488 — 44,488 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 485 485 — 485 — December 31, 2017 Cash and Cash Equivalents $ 72,838 $ 72,838 $ 72,838 $ — $ — Securities Available-for-Sale 300,200 300,200 — 300,200 — Securities Held-to-Maturity 335,907 335,901 — 335,901 — Federal Home Loan Bank and Federal Reserve Bank Stock 9,949 9,949 — 9,949 — Net Loans 1,932,184 1,901,046 — — 1,901,046 Accrued Interest Receivable 6,753 6,753 — 6,753 — Deposits 2,245,116 2,236,548 — 2,236,548 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 64,966 64,966 — 64,966 — Federal Home Loan Bank Overnight Advances 105,000 105,000 — 105,000 — Federal Home Loan Bank Term Advances 55,000 54,781 — 54,781 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 410 410 — 410 — September 30, 2017 Cash and Cash Equivalents $ 80,666 $ 80,666 $ 80,666 $ — $ — Securities Available-for-Sale 315,459 315,459 64,730 250,729 — Securities Held-to-Maturity 341,526 343,899 — 343,899 — Federal Home Loan Bank and Federal Reserve Bank Stock 6,704 6,704 — 6,704 — Net Loans 1,891,104 1,870,379 — — 1,870,379 Accrued Interest Receivable 6,563 7,692 — 7,692 — Deposits 2,307,116 2,299,011 — 2,299,011 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 61,419 61,419 — 61,419 — Federal Home Loan Bank Overnight Advances 33,000 33,000 — 33,000 — Federal Home Loan Bank Term Advances 55,000 55,110 — 55,110 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 260 260 — 260 — |
Accounting Policies Significant
Accounting Policies Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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 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. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, goodwill impairment, pension and other postretirement liabilities and an analysis of a need for a valuation allowance for deferred tax assets. 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 loan losses. In connection with the determination of the allowance for loan losses, management obtains appraisals for properties. The allowance for loan losses is management’s best estimate of probable loan losses incurred as of the balance sheet date. While management uses available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in the first nine months of 2018: ASU 2014-09 "Revenue from Contracts With Customers" (Topic 606) was adopted as of January 1, 2018. For additional information, see Revenue Recognition under Significant Accounting Policy Update in this Note. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" (Subtopic 825-10) significantly changed the income statement impact of equity investments. For Arrow, the standard became effective for the first quarter of 2018, and requires that equity investments be measured at fair value, with changes in fair value recognized in net income. The cumulative effect of the January 1, 2018 adoption was an increase to retained earnings of $331 thousand with a corresponding decrease to Accumulated Other Comprehensive Loss. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. ASU 2016-01 also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities not make use of a practicability exception in determining the fair value of loans. Accordingly, the Company refined the calculation used to determine the disclosed fair value of its loans as part of adopting this standard. See Note 9 to the unaudited interim consolidated financial statements titled Fair Value of Financial Instruments. ASU 2016-15 "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments" (Topic 230) will reduce existing diversity in practice with respect to eight specific cash flow issues. Arrow adopted this ASU in the first quarter of 2018. ASU 2017-01 "Business Combinations" (Topic 805) defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard became effective in the first quarter of 2018. This update had no effect on its accounting for acquisitions and dispositions of businesses. ASU 2017-07 "Compensation-Retirement Benefits" (Topic 715) improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. For Arrow, the standard became effective in the first quarter of 2018. In accordance with the practical expedient adoption method, for all periods presented Arrow used the amounts disclosed in the retirement plans footnote for the prior period retrospective reclassification of the non-service cost components from salaries and benefits to other operating expenses. The adoption of this change in accounting for pension costs did not have a material impact on its financial position or the results of operations. ASU 2017-09 "Compensation-Stock Compensation" (Topic 718) provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard became effective in the first quarter of 2018. The adoption of this change in accounting for share-based payment awards did not have a material impact on its financial position or the results of operations in periods subsequent to its adoption. The following accounting standards have been issued and will become effective for the Company at a future date: In February 2016, the FASB issued ASU 2016-02, "Leases" (Topic 842) which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. For a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option or not exercise an option to terminate the lease. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): "Land Easement Practical Expedient for Transition to Topic 842". In July 2018, the FASB issued ASU 2018-10 "Codification Improvements to Topic 842, Leases" which provided clarification on certain components of the original guidance, including that the rate implicit in the lease cannot be less than zero. Also in July 2018, the FASB issued ASU 2018-11 "Targeted Improvements" to Leases (Topic 842) which amends the original guidance to allow for the adoption of this standard to be applied retrospectively at the beginning of the period of adoption, which will be January 1, 2019 for Arrow, through a cumulative-effect adjustment to the balance sheet, including retained earnings, as of January 1, 2019. Practical expedients may be elected that would not require Arrow to reassess whether an existing contract contains a lease, to reassess existing leases between operating leases and finance leases and to not reassess initial direct costs for any existing leases. If elected, these practical expedients must be applied together. An entity may also elect a practical expedient, which must be applied consistently to all of its leases, to use hindsight in determining the lease term when considering lessee options to extend or terminate the lease and in assessing impairment in the right-of-use asset. In addition, a lessor may make an accounting policy election, by class of underlying asset, to not separate nonlease components from lease components and account for these components as a single lease component. Early adoption of this standard is permitted in any interim or annual period. The Company expects to adopt the new lease standard on January 1, 2019 through a cumulative-effect adjustment without revising prior comparative periods, and elect the practical expedients available to effectively account for leases commenced prior to the effective date. The Company expects assets and liabilities to increase between $7 million and $9 million at the January 1, 2019 adoption date, with no material impact to operating lease expense in its Consolidated Statements of Income. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" (Topic 326) which will change the way financial entities measure expected credit losses for financial assets, primarily loans. Under this ASU, the "incurred loss" model will be replaced with an "expected loss" model which will recognize losses over the life of the instrument and requires consideration of a broader range of reasonable and supportable information. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under this ASU, the amount of the credit loss is carried as a valuation allowance and can be reversed. The standard also requires expanded credit quality disclosures. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new current expected credit loss ("CECL") methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The FASB’s Transition Research Group for credit losses still has several outstanding unresolved questions, some of which may have a significant impact on CECL calculations. The Company continues its implementation efforts with the development and testing of various methods within its core model, developing forecast scenarios, monitoring of guidance interpretations and consideration of relevant internal controls and processes. This will likely have the effect of increasing the allowance for loan and lease losses and reducing shareholders' equity, the extent of which will depend upon the nature and characteristics of the Company's loan portfolio and economic conditions and forecasts at the adoption date. The Company expects to remain a well-capitalized financial institution under current regulatory calculations. In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other" (Topic 350) which simplifies the procedures for evaluating impairment of goodwill. Prior to the adoption of this standard, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under this ASU, entities will perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect the assessment of goodwill impairment since the Company currently performs the analysis of comparing carrying value to fair value of its reporting units that have goodwill and the Company has not had to perform a Step 2 Impairment Test to date. In March 2017, the FASB issued ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" which amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019. The Company does not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on its financial position or the results of operations in periods subsequent to its adoption. In August 2018, the FASB issued ASU 2018-13 "Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" which as part of its disclosure framework, the FASB has eliminated, amended and added disclosure requirements for fair value measurements. The following disclosure requirements were eliminated: Amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy of the timing of transfers between levels of the fair value hierarchy; the valuation processes for Level 3 fair value measurements. For public companies such as Arrow, the following new disclosures will be required: Changes in unrealized gains and losses for the period included in other comprehensive income (OCI); the range and weighted average of significant unobservable inputs used; alternatively, a company may choose to disclose other quantitative information if it determines that it is a more reasonable and rational method that reflects the distribution of unobservable inputs used. For Arrow, the standard becomes effective in the first quarter of 2020. The Company does not expect that the adoption of this change in fair value disclosure will have a material impact on its financial position or the results of operations in periods subsequent to its adoption. In August 2018, the FASB issued ASU 2018-14 "Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" which applies to all companies that provide defined benefit pension or other postretirement benefit plans for their employees. Certain disclosure requirements have been eliminated such as reporting the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next year, and reporting the effects of a one-percentage-point change in the assumed healthcare cost trend rate on the aggregate of the service cost and interest cost components of net periodic benefit cost and on the benefit obligation for postretirement healthcare benefits. New required disclosures for reporting the weighted-average interest rate used to credit cash balance and similar plans that have a promised interest credit, the reasons for significant gains and losses affecting benefit obligations and other requirements for reporting aggregate information related to pension plans. For Arrow, the standard becomes effective at December 31, 2020. The Company does not expect that the adoption of this change affecting defined benefit plan disclosures will have a material impact on its financial position or the results of operations. In August 2018, the FASB issued ASU 2018-15 "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" which will require companies to defer potentially significant, specified implementation costs incurred in a cloud computing arrangement that are often expensed under current US GAAP. For Arrow, the standard becomes effective at January 1, 2020. The Company is in the process of assessing the impact of this new accounting standard on its financial position and the results of operations in periods subsequent to its adoption. Significant Accounting Policy Update: Revenue Recognition - Accounting Standard Codification ("ASC") Topic 606, "Revenue from Contracts with Customers," establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle of Topic 606 requires an entity to recognize revenue in a way that depicts the transfer of goods or services promised to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services as performance obligations are satisfied. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective approach. The Company has determined that revenue from specific types of fiduciary activities and insurance commissions are within the scope of this guidance. Under prior GAAP, revenue from fiduciary activities was recognized from settling client estates over the time period the work was performed. With the adoption of Topic 606, revenue is now recognized when the performance obligation is completed, which is when the settlement of the client estate is closed. The impact of this change in revenue recognition was not material to the Company's consolidated financial statements. Under prior GAAP when clients elected to pay premiums on property and casualty insurance policies in installments, revenue was recognized when the premiums were billed. With the adoption of Topic 606, this type of revenue is recognized when the performance obligation is substantially completed, i.e., when the insurance policy is issued. The impact of this change in revenue recognition was not material to the Company's consolidated financial statements. The cumulative effect of the adoption of Topic 606 related to the previously described fiduciary activities and insurance commissions was a decrease in retained earnings by $102 thousand as of January 1, 2018. The majority of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities which are presented in its consolidated income statements as components of net interest income. The following is a description of principal activities from which the Company generates its revenue from noninterest income sources that are within the scope of ASC Topic 606: Income from Fiduciary Activities: represents revenue derived mainly through the management of client investments which is based on the market value of the covered assets and the fee schedule contained in the applicable account management agreement. Since the revenue is mainly based on the market value of assets, this amount can be volatile as financial markets increase and decrease based on various economic factors. The terms of the account management agreements generally specify that the performance obligations are completed each quarter. Accordingly, the Company mainly recognizes revenue from fiduciary activities on a quarterly basis. Fees for Other Services to Customers: represents general service fees for monthly deposit account maintenance and account activity plus fees from other deposit-based services. Revenue is recognized when the performance obligation is completed, which is generally on a monthly basis for account maintenance services, or upon the completion of a deposit-related transaction. Payment for these performance obligations is generally received at the time the performance obligations are satisfied. Insurance Commissions: represents commissions and fees paid by insurance carriers for both property and casualty insurance policies, and for services performed for employment benefits clients. Revenue from the property and casualty insurance business is recognized when the performance obligation is satisfied, which is generally the effective date of the bound coverage since there are no significant performance obligations remaining. Revenue from the employment benefit brokerage business is recognized when the benefit servicing performance obligations are satisfied, generally on a monthly basis. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Securities | The following table is the schedule of Available-For-Sale Securities at September 30, 2018 , December 31, 2017 and September 30, 2017 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,135 $ 2,545 $ 284,236 $ 1,000 $ — $ 347,916 Available-For-Sale Securities, at Fair Value 59,602 2,548 277,461 800 — 340,411 Gross Unrealized Gains — 3 201 — — 204 Gross Unrealized Losses 533 — 6,976 200 — 7,709 Available-For-Sale Securities, Pledged as Collateral 219,587 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 42,621 $ 1,346 $ 1,024 $ — $ 44,991 From 1 - 5 Years 17,514 719 164,808 — 183,041 From 5 - 10 Years — — 103,597 — 103,597 Over 10 Years — 480 14,807 1,000 16,287 Maturities of Debt Securities, at Fair Value: Within One Year $ 42,410 $ 1,346 $ 1,025 $ — $ 44,781 From 1 - 5 Years 17,192 722 158,846 — 176,760 From 5 - 10 Years — — 102,800 — 102,800 Over 10 Years — 480 14,790 800 16,070 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 4,831 $ 1,120 $ 167,718 $ — $ — $ 173,669 12 Months or Longer 54,771 — 71,433 800 — 127,004 Total $ 59,602 $ 1,120 $ 239,151 $ 800 $ — $ 300,673 Number of Securities in a Continuous Loss Position 14 5 90 1 — 110 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 193 $ — $ 3,165 $ — $ — $ 3,358 12 Months or Longer 340 — 3,811 200 — 4,351 Total $ 533 $ — $ 6,976 $ 200 $ — $ 7,709 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,135 US Agency Obligations, 59,602 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities US Government Agency Securities, at Amortized Cost $ 74,160 US Government Agency Securities, at Fair Value 74,098 Government Sponsored Entity Securities, at Amortized Cost 210,076 Government Sponsored Entity 203,363 December 31, 2017 Available-For-Sale Securities, at Amortized Cost $ 60,328 $ 10,351 $ 229,077 $ 1,000 $ 1,120 $ 301,876 Available-For-Sale Securities, at Fair Value 59,894 10,349 227,596 800 1,561 300,200 Gross Unrealized Gains — 9 485 — 441 935 Gross Unrealized Losses 434 11 1,966 200 — 2,611 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 183,052 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 20,348 $ 8,498 $ 70,930 $ — $ — $ 99,776 12 Months or Longer 39,546 — 80,759 800 — 121,105 Total $ 59,894 $ 8,498 $ 151,689 $ 800 $ — $ 220,881 Number of Securities in a Continuous Loss Position 14 36 55 1 — 106 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 172 $ 11 $ 363 $ — $ — $ 546 12 Months or Longer 262 — 1,603 200 — 2,065 Total $ 434 $ 11 $ 1,966 $ 200 $ — $ 2,611 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 60,328 US Agency Obligations, 59,894 US Government Agency Securities, at Amortized Cost $ 40,832 US Government Agency Securities, at Fair Value 40,832 Government Sponsored Entity Securities, at Amortized Cost 188,245 Government Sponsored Entity 186,764 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,976 $ 11,875 $ 152,858 $ 2,500 $ 1,120 $ 315,329 Available-For-Sale Securities, at Fair Value 146,978 11,902 152,806 2,299 1,474 315,459 Gross Unrealized Gains 152 27 964 — 354 1,497 Gross Unrealized Losses 150 — 1,016 201 — 1,367 Available-For-Sale Securities, Pledged as Collateral 206,637 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 89,563 $ — $ 85,091 $ 500 $ — $ 175,154 12 Months or Longer — — — 1,800 — 1,800 Total $ 89,563 $ — $ 85,091 $ 2,300 $ — $ 176,954 Number of Securities in a Continuous Loss Position 23 — 31 3 — 57 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 150 $ — $ 1,016 $ — $ — $ 1,166 12 Months or Longer — — — 201 — 201 Total $ 150 $ — $ 1,016 $ 201 $ — $ 1,367 Disaggregated Details: US Treasury Obligations, $ 64,711 US Treasury Obligations, $ 64,730 US Agency Obligations, $ 82,265 US Agency Obligations, 82,248 US Government Agency Securities, at Amortized Cost $ 503 US Government Agency Securities, at Fair Value 505 Government Sponsored Entity Securities, at Amortized Cost 152,355 Government Sponsored Entity 152,301 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at September 30, 2018 , December 31, 2017 and September 30, 2017 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 239,367 $ 50,585 $ — $ 289,952 Held-To-Maturity Securities, at Fair Value 233,557 49,162 — 282,719 Gross Unrealized Gains 261 — — 261 Gross Unrealized Losses 6,071 1,423 — 7,494 Held-To-Maturity Securities, Pledged as Collateral 268,229 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 19,381 $ — $ — $ 19,381 From 1 - 5 Years 93,084 48,039 — 141,123 From 5 - 10 Years 124,277 2,546 — 126,823 Over 10 Years 2,625 — — 2,625 Maturities of Debt Securities, at Fair Value: Within One Year $ 19,396 $ — $ — $ 19,396 From 1 - 5 Years 92,199 46,688 — 138,887 From 5 - 10 Years 119,356 2,474 — 121,830 Over 10 Years 2,606 — — 2,606 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 95,944 $ 46,375 $ — $ 142,319 12 Months or Longer 86,378 2,787 — 89,165 Total $ 182,322 $ 49,162 $ — $ 231,484 Number of Securities in a Continuous Loss Position 535 47 — 582 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,443 $ 1,303 $ — $ 2,746 12 Months or Longer 4,628 120 — 4,748 Total $ 6,071 $ 1,423 $ — $ 7,494 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,147 US Government Agency Securities, at Fair Value 2,222 Government Sponsored Entity Securities, at Amortized Cost 47,438 Government Sponsored Entity 46,940 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2017 Held-To-Maturity Securities, at Amortized Cost $ 275,530 $ 60,377 $ — $ 335,907 Held-To-Maturity Securities, at Fair Value 275,353 60,548 — 335,901 Gross Unrealized Gains 1,691 269 — 1,960 Gross Unrealized Losses 1,868 98 — 1,966 Held-To-Maturity Securities, Pledged as Collateral 318,622 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 55,648 $ 13,764 $ — $ 69,412 12 Months or Longer 65,152 3,257 — 68,409 Total $ 120,800 $ 17,021 $ — $ 137,821 Number of Securities in a Continuous Loss Position 352 14 — 366 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 442 $ 56 $ — $ 498 12 Months or Longer 1,425 43 — 1,468 Total $ 1,867 $ 99 $ — $ 1,966 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,680 US Government Agency Securities, at Fair Value 2,661 Government Sponsored Entity Securities, at Amortized Cost 57,697 Government Sponsored Entity 57,887 September 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 277,738 $ 63,788 $ — $ 341,526 Held-To-Maturity Securities, at Fair Value 279,384 64,515 — 343,899 Gross Unrealized Gains 2,977 738 — 3,715 Gross Unrealized Losses 1,331 11 — 1,342 Held-To-Maturity Securities, Pledged as Collateral 325,096 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 78,238 $ 3,544 $ — $ 81,782 12 Months or Longer 13,331 — — 13,331 Total $ 91,569 $ 3,544 $ — $ 95,113 Number of Securities in a Continuous Loss Position 252 7 — 259 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,034 $ 11 $ — $ 1,045 12 Months or Longer 297 — — 297 Total $ 1,331 $ 11 $ — $ 1,342 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2017 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,792 US Government Agency Securities, at Fair Value 2,799 Government Sponsored Entity Securities, at Amortized Cost 60,996 Government Sponsored Entity 61,716 |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is the schedule of Equity Securities at September 30, 2018 . Upon the adoption of ASU 2016-01 effective January 1, 2018, Equity Securities are not included in Securities Available-For-Sale since unrealized gains and losses are now recorded in the Consolidated Statements of Income. Prior to January 1, 2018, Equity Securities were included in Securities Available-For-Sale. Equity Securities September 30, 2018 Equity Securities, at Fair Value $ 1,916 |
Unrealized Gain (Loss) on Investments | The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three- and nine-month periods ended September 30, 2018 : Three months ended September 30, 2018 Nine months ended September 30, 2018 Net Gain on Equity Securities $ 114 $ 355 Less: Net gain (loss) 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 $ 114 $ 355 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Past Due Financing Receivables | The following table presents loan balances outstanding as of September 30, 2018 , December 31, 2017 and September 30, 2017 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $201 , $327 and $1,323 as of September 30, 2018 , December 31, 2017 and September 30, 2017 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Loans Past Due 30-59 Days $ 198 $ — $ 5,651 $ 2,896 $ 8,745 Loans Past Due 60-89 Days — — 1,307 47 1,354 Loans Past Due 90 or more Days 76 807 494 1,523 2,900 Total Loans Past Due 274 807 7,452 4,466 12,999 Current Loans 126,838 469,315 686,736 830,212 2,113,101 Total Loans $ 127,112 $ 470,122 $ 694,188 $ 834,678 $ 2,126,100 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 192 $ 980 $ 1,172 Nonaccrual Loans 674 807 540 2,447 4,468 December 31, 2017 Loans Past Due 30-59 Days $ 139 $ — $ 5,891 $ 2,094 $ 8,124 Loans Past Due 60-89 Days 19 — 1,215 509 1,743 Loans Past Due 90 or more Days 99 807 513 1,422 2,841 Total Loans Past Due 257 807 7,619 4,025 12,708 Current Loans 128,992 443,441 595,208 770,421 1,938,062 Total Loans $ 129,249 $ 444,248 $ 602,827 $ 774,446 $ 1,950,770 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 6 $ 313 $ 319 Nonaccrual Loans $ 588 $ 1,530 $ 653 $ 2,755 5,526 September 30, 2017 Loans Past Due 30-59 Days $ 122 $ 442 $ 4,781 $ 1,675 $ 7,020 Loans Past Due 60-89 Days — — 914 77 991 Loans Past Due 90 or more Days 102 807 291 1,742 2,942 Total Loans Past Due 224 1,249 5,986 3,494 10,953 Current Loans 125,136 439,467 586,043 747,200 1,897,846 Total Loans $ 125,360 $ 440,716 $ 592,029 $ 750,694 $ 1,908,799 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 41 $ 926 $ 967 Nonaccrual Loans $ 609 $ 1,249 $ 507 $ 3,117 5,482 |
Allowance for Credit Losses on Financing Receivables | The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 Charge-offs — — (300 ) (25 ) (325 ) Recoveries — — 102 — 102 Provision 99 81 551 (145 ) 586 September 30, 2018 $ 1,043 $ 5,919 $ 8,690 $ 4,351 $ 20,003 June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ 17,442 Charge-offs — (342 ) (280 ) — (622 ) Recoveries 1 — 74 — 75 Provision (46 ) 446 509 (109 ) 800 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ 17,695 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (895 ) (49 ) (960 ) Recoveries 1 12 403 — 416 Provision (815 ) 1,403 1,578 (205 ) 1,961 September 30, 2018 $ 1,043 $ 5,919 $ 8,690 $ 4,351 $ 20,003 December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ 17,012 Charge-offs (2 ) (342 ) (847 ) (6 ) (1,197 ) Recoveries 8 — 292 — 300 Provision (143 ) (248 ) 2,043 (72 ) 1,580 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ 17,695 September 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 84 $ 45 $ — $ 48 $ 177 Allowance for loan losses - Loans Collectively Evaluated for Impairment 959 5,874 8,690 4,303 19,826 Ending Loan Balance - Individually Evaluated for Impairment 489 812 109 2,013 3,423 Ending Loan Balance - Collectively Evaluated for Impairment $ 126,623 $ 469,310 $ 694,079 $ 832,665 $ 2,122,677 December 31, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 94 $ 2 $ — $ 10 $ 106 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,779 4,502 7,604 4,595 18,480 Ending Loan Balance - Individually Evaluated for Impairment 489 1,537 95 1,562 3,683 Ending Loan Balance - Collectively Evaluated for Impairment $ 128,760 $ 442,711 $ 602,732 $ 772,884 $ 1,947,087 September 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 104 $ — $ — $ 34 $ 138 Allowance for loan losses - Loans Collectively Evaluated for Impairment 776 5,087 7,608 4,086 17,557 Ending Loan Balance - Individually Evaluated for Impairment 489 1,543 104 1,139 3,275 Ending Loan Balance - Collectively Evaluated for Impairment $ 124,871 $ 439,172 $ 591,925 $ 749,556 $ 1,905,524 |
Financing Receivable Credit Quality Indicators | The following table presents the credit quality indicators by loan category at September 30, 2018 , December 31, 2017 and September 30, 2017 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 119,217 $ 440,114 $ — $ — $ 559,331 Special Mention 5,949 — — — 5,949 Substandard 1,946 29,201 — — 31,147 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 693,648 $ 832,231 $ 1,525,879 Nonperforming — — 540 2,447 2,987 December 31, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 124,961 $ 417,362 $ — $ — $ 542,323 Special Mention 1,341 177 — — 1,518 Substandard 2,947 25,902 — — 28,849 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 602,168 $ 771,584 $ 1,373,752 Nonperforming — — 659 3,068 3,727 September 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,622 $ 411,685 $ — $ — $ 532,307 Special Mention 1,394 1,401 — — 2,795 Substandard 3,344 26,822 — — 30,166 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 591,499 $ 746,652 $ 1,338,151 Nonperforming — — 530 4,043 4,573 |
Impaired Financing Receivables | The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total September 30, 2018 Recorded Investment: With No Related Allowance $ — $ 5 $ 108 $ 1,712 $ 1,825 With a Related Allowance 475 801 — 346 1,622 Unpaid Principal Balance: With No Related Allowance — 5 109 1,733 1,847 With a Related Allowance 489 807 — 280 1,576 December 31, 2017 Recorded Investment: With No Related Allowance $ — $ 781 $ 94 $ 1,269 $ 2,144 With a Related Allowance 485 725 — 333 1,543 Unpaid Principal Balance: With No Related Allowance — 816 95 1,274 2,185 With a Related Allowance 489 721 — 288 1,498 September 30, 2017 Recorded Investment: With No Related Allowance $ — $ 818 $ 104 $ 851 $ 1,773 With a Related Allowance 489 725 — 288 1,502 Unpaid Principal Balance: With No Related Allowance — 818 90 850 $ 1,758 With a Related Allowance 489 723 — 288 1,500 For the Quarter Ended: September 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 7 $ 104 $ 1,371 $ 1,482 With a Related Allowance 478 794 — 350 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 998 $ 96 $ 827 $ 1,921 With a Related Allowance 496 363 — 288 1,147 Interest Income Recognized: With No Related Allowance — — 1 — 1 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: September 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 393 $ 101 $ 1,491 $ 1,985 With a Related Allowance 480 763 — 340 1,583 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — 20 20 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 854 $ 98 $ 975 $ 1,927 With a Related Allowance 245 363 — 144 752 Interest Income Recognized: With No Related Allowance — — 3 — 3 With a Related Allowance — — — 4 4 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — |
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, 2018 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 16 $ — $ 16 Post-Modification Outstanding Recorded Investment — — 16 — 16 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 725 $ — $ 25 $ — $ 750 Post-Modification Outstanding Recorded Investment 725 — 25 — 750 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: September 30, 2018 Number of Loans — — 5 — 5 Pre-Modification Outstanding Recorded Investment $ — $ — $ 44 $ — $ 44 Post-Modification Outstanding Recorded Investment — — 44 — 44 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2017 Number of Loans 2 — 6 — 8 Pre-Modification Outstanding Recorded Investment $ 1,228 $ — $ 51 $ — $ 1,279 Post-Modification Outstanding Recorded Investment 1,228 — 51 — 1,279 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [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, 2018 , December 31, 2017 and September 30, 2017 : Commitments to Extend Credit and Letters of Credit September 30, 2018 December 31, 2017 September 30, 2017 Notional Amount: Commitments to Extend Credit $ 335,587 $ 315,256 $ 316,449 Standby Letters of Credit 4,016 3,526 3,672 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 4 23 18 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income | The following table presents the components of other comprehensive income for the three- and nine-month periods ended September 30, 2018 and 2017 : Schedule of Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (1,203 ) $ 306 (897 ) (5,388 ) $ 1,371 (4,017 ) Amortization of Net Retirement Plan Actuarial Loss 81 (21 ) 60 244 (63 ) 181 Accretion of Net Retirement Plan Prior Service Credit 27 (7 ) 20 81 (21 ) 60 Other Comprehensive Loss $ (1,095 ) $ 278 $ (817 ) $ (5,063 ) $ 1,287 $ (3,776 ) 2017 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 6 $ 3 9 749 $ (284 ) 465 Reclassification Adjustment for Securities Gains Included in Net Income (10 ) 4 (6 ) (10 ) 4 (6 ) Amortization of Net Retirement Plan Actuarial Loss 179 (115 ) 64 537 (292 ) 245 Accretion of Net Retirement Plan Prior Service Credit (3 ) 1 (2 ) (8 ) 3 (5 ) Other Comprehensive Income $ 172 $ (107 ) $ 65 $ 1,268 $ (569 ) $ 699 |
Changes in Accumulated Other Comprehensive Income By Component | The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) Other comprehensive income or loss before reclassifications (897 ) — — (897 ) Amounts reclassified from accumulated other comprehensive income 60 20 80 Net current-period other comprehensive income (loss) (897 ) 60 20 (817 ) September 30, 2018 $ (5,598 ) $ (6,199 ) $ (824 ) $ (12,621 ) June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) Other comprehensive income or loss before reclassifications 9 — — 9 Amounts reclassified from accumulated other comprehensive income (6 ) 64 (2 ) 56 Net current-period other comprehensive income (loss) 3 64 (2 ) 65 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) For the Year-To-Date periods ended: December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (4,017 ) — — (4,017 ) Amounts reclassified from accumulated other comprehensive income — 181 60 241 Net current-period other comprehensive income (4,017 ) 181 60 (3,776 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) September 30, 2018 $ (5,598 ) $ (6,199 ) $ (824 ) $ (12,621 ) December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 465 — — 465 Amounts reclassified from accumulated other comprehensive income (6 ) 245 (5 ) 234 Net current-period other comprehensive income 459 245 (5 ) 699 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) (1) All amounts are net of tax. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (27 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (81 ) (1) Salaries and Employee Benefits (108 ) Total before Tax 28 Provision for Income Taxes $ (80 ) Net of Tax Total reclassifications for the period $ (80 ) Net of Tax September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (1) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (1) Salaries and Employee Benefits (176 ) Total before Tax 114 Provision for Income Taxes $ (62 ) Net of Tax Total reclassifications for the period $ (56 ) Net of Tax For the Year-to-date periods ended: September 30, 2018 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ (81 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (244 ) (1) Salaries and Employee Benefits (325 ) Total before Tax 84 Provision for Income Taxes $ (241 ) Net of Tax Total reclassifications for the period $ (241 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs 8 (1) Salaries and Employee Benefits Actuarial gains/(losses) $ (537 ) (1) Salaries and Employee Benefits (529 ) Total before Tax 289 Provision for Income Taxes $ (240 ) Net of Tax Total reclassifications for the period $ (234 ) Net of Tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents the roll forward of stock options issued pursuant to the Long Term Incentive Plan by Shares and Weighted Average Exercise Prices. Roll-Forward of Shares Outstanding: Outstanding at January 1, 2018 356,540 Granted 56,843 Exercised (94,742 ) Forfeited (14,953 ) Outstanding at September 30, 2018 303,688 Exercisable at Period-End 185,547 Vested and Expected to Vest 118,141 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2018 $ 23.42 Granted 29.95 Exercised 20.85 Forfeited 26.61 Outstanding at September 30, 2018 25.24 Exercisable at Period-End 22.47 Vested and Expected to Vest 29.59 Schedule of Other Long Term Incentive Plan Information Grants Issued During 2018 - Weighted Average Information: Fair Value $ 5.59 Fair Value Assumptions: Dividend Yield 2.98 % Expected Volatility 21.55 % Risk Free Interest Rate 2.68 % Expected Lives (in years) 6.98 The following table presents the roll forward of restricted stock units by units and weighted average grant-date fair value. Roll-Forward of Restricted Stock Units Non-vested at January 1, 2018 — Granted 3,377 Vested — Canceled — Non-vested at September 30, 2018 3,377 Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: Non-vested at January 1, 2018 $ — Granted 32.57 Vested — Canceled — Non-vested at September 30, 2018 32.57 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed for the periods ended September 30, 2018 and 2017 : Share-Based Compensation Expense For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Share-Based Compensation Expense $ 89 $ 90 $ 267 $ 262 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [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, 2018 and 2017 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended September 30, 2018: Service Cost 1 $ 389 $ 104 $ 34 Interest Cost 2 400 48 81 Expected Return on Plan Assets 2 (841 ) — — Amortization of Prior Service (Credit) Cost 2 (12 ) 14 25 Amortization of Net Loss 2 48 33 — Net Periodic (Benefit) Cost $ (16 ) $ 199 $ 140 Plan Contributions During the Period $ — $ 116 $ 56 For the Three Months Ended September 30, 2017: Service Cost 1 $ 350 $ 10 $ 37 Interest Cost 2 362 55 75 Expected Return on Plan Assets 2 (800 ) — — Amortization of Prior Service (Credit) Cost 2 (14 ) 14 (3 ) Amortization of Net Loss 2 148 31 — Net Periodic (Benefit) Cost $ 46 $ 110 $ 109 Plan Contributions During the Period $ — $ 116 $ 65 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2018: Service Cost 1 $ 1,168 $ 311 $ 102 Interest Cost 2 1,199 152 248 Expected Return on Plan Assets 2 (2,522 ) — — Amortization of Prior Service (Credit) Cost 2 (37 ) 43 75 Amortization of Net Loss 2 145 99 — Net Periodic (Benefit) Cost $ (47 ) $ 605 $ 425 Plan Contributions During the Period $ — $ 349 $ 175 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Nine Months Ended September 30, 2017: Service Cost 1 $ 1,050 $ 30 $ 110 Interest Cost 2 1,085 164 224 Expected Return on Plan Assets 2 (2,399 ) — — Amortization of Prior Service (Credit) Cost 2 (43 ) 43 (8 ) Amortization of Net Loss 2 443 94 — Net Periodic (Benefit) Cost $ 136 $ 331 $ 326 Plan Contributions During the Period $ — $ 345 $ 295 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, 2018 | |
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, 2018 and 2017 . All share and per share amounts have been adjusted for the September 27, 2018 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Earnings Per Share - Basic: Net Income $ 9,260 $ 7,416 $ 27,521 $ 21,255 Weighted Average Shares - Basic 14,431 14,305 14,393 14,306 Earnings Per Share - Basic $ 0.64 $ 0.52 $ 1.91 $ 1.49 Earnings Per Share - Diluted: Net Income $ 9,260 $ 7,416 $ 27,521 $ 21,255 Weighted Average Shares - Basic 14,431 14,305 14,393 14,306 Dilutive Average Shares Attributable to Stock Options 89 80 86 95 Weighted Average Shares - Diluted 14,520 14,385 14,479 14,401 Earnings Per Share - Diluted $ 0.64 $ 0.52 $ 1.90 $ 1.48 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Life-to-Date Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,602 $ — $ 59,602 $ — State and Municipal Obligations 2,548 — 2,548 — Mortgage-Backed Securities 277,461 — 277,461 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 340,411 — 340,411 — Equity Securities 1,916 — 1,916 — Total Securities Measured on a Recurring Basis $ 342,327 $ — $ 342,327 $ — December 31, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,894 $ — $ 59,894 $ — State and Municipal Obligations 10,349 — 10,349 — Mortgage-Backed Securities 227,596 — 227,596 — Corporate and Other Debt Securities 800 — 800 — Equity Securities 1,561 — 1,561 — Total Securities Available-for Sale $ 300,200 $ — $ 300,200 $ — September 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 146,978 $ 64,730 $ 82,248 $ — State and Municipal Obligations 11,902 — 11,902 — Mortgage-Backed Securities 152,806 — 152,806 — Corporate and Other Debt Securities 2,299 — 2,299 — Equity Securities 1,474 — 1,474 — Total Securities Available-for Sale $ 315,459 $ 64,730 $ 250,729 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2018 Collateral Dependent Impaired Loans $ 857 $ — $ — $ 857 $ (58 ) Other Real Estate Owned and Repossessed Assets, Net 1,220 — — 1,220 (559 ) December 31, 2017 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,847 $ — — 1,847 $ (569 ) September 30, 2017 Collateral Dependent Impaired Loans $ 1,502 $ — $ — $ 1,502 $ (138 ) Other Real Estate Owned and Repossessed Assets, Net 1,713 — — 1,713 (655 ) |
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 Book Value Fair Value Level 1 Level 2 Level 3 September 30, 2018 Cash and Cash Equivalents $ 92,295 $ 92,295 $ 92,295 $ — $ — Securities Available-for-Sale 340,411 340,411 — 340,411 — Securities Held-to-Maturity 289,952 282,719 — 282,719 — Equity Securities 1,916 1,916 — 1,916 — Federal Home Loan Bank and Federal Reserve Bank Stock 10,866 10,866 — 10,866 — Net Loans 2,106,097 2,030,278 — — 2,030,278 Accrued Interest Receivable 8,028 8,028 — 8,028 — Deposits 2,407,855 2,398,987 — 2,398,987 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 62,503 62,503 — 62,503 — Federal Home Loan Bank Overnight Advances 131,000 131,000 — 131,000 — Federal Home Loan Bank Term Advances 45,000 44,488 — 44,488 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 485 485 — 485 — December 31, 2017 Cash and Cash Equivalents $ 72,838 $ 72,838 $ 72,838 $ — $ — Securities Available-for-Sale 300,200 300,200 — 300,200 — Securities Held-to-Maturity 335,907 335,901 — 335,901 — Federal Home Loan Bank and Federal Reserve Bank Stock 9,949 9,949 — 9,949 — Net Loans 1,932,184 1,901,046 — — 1,901,046 Accrued Interest Receivable 6,753 6,753 — 6,753 — Deposits 2,245,116 2,236,548 — 2,236,548 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 64,966 64,966 — 64,966 — Federal Home Loan Bank Overnight Advances 105,000 105,000 — 105,000 — Federal Home Loan Bank Term Advances 55,000 54,781 — 54,781 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 410 410 — 410 — September 30, 2017 Cash and Cash Equivalents $ 80,666 $ 80,666 $ 80,666 $ — $ — Securities Available-for-Sale 315,459 315,459 64,730 250,729 — Securities Held-to-Maturity 341,526 343,899 — 343,899 — Federal Home Loan Bank and Federal Reserve Bank Stock 6,704 6,704 — 6,704 — Net Loans 1,891,104 1,870,379 — — 1,870,379 Accrued Interest Receivable 6,563 7,692 — 7,692 — Deposits 2,307,116 2,299,011 — 2,299,011 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 61,419 61,419 — 61,419 — Federal Home Loan Bank Overnight Advances 33,000 33,000 — 33,000 — Federal Home Loan Bank Term Advances 55,000 55,110 — 55,110 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 260 260 — 260 — |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Standards Update 2016-01 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ 0 | |
Accounting Standards Update 2014-09 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | (102) | |
Retained Earnings | Accounting Standards Update 2016-01 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | 331 | |
Retained Earnings | Accounting Standards Update 2014-09 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ (102) | |
Minimum | Accounting Standards Update 2016-02 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ 7,000 | |
Maximum | Accounting Standards Update 2016-02 | ||
Retained Earnings Adjustments [Line Items] | ||
Impact of change in accounting policy | $ 9,000 |
Investment Securities Available
Investment Securities Available for Sale (Details) $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | $ 347,916 | $ 301,876 | $ 315,329 |
Available-for-Sale | 340,411 | 300,200 | 315,459 |
Gross Unrealized Gains | 204 | 935 | 1,497 |
Gross Unrealized Losses | 7,709 | 2,611 | 1,367 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 44,991 | ||
From 1 - 5 Years | 183,041 | ||
From 5 - 10 Years | 103,597 | ||
Over 10 Years | 16,287 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 44,781 | ||
From 1 - 5 Years | 176,760 | ||
From 5 - 10 Years | 102,800 | ||
Over 10 Years | 16,070 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 173,669 | 99,776 | 175,154 |
12 Months or Longer | 127,004 | 121,105 | 1,800 |
Total | $ 300,673 | $ 220,881 | $ 176,954 |
Number of Securities in a Continuous Loss Position | 110 | 106 | 57 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 3,358 | $ 546 | $ 1,166 |
12 Months or Longer | 4,351 | 2,065 | 201 |
Total | 7,709 | 2,611 | 1,367 |
U.S. Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 60,135 | 60,328 | 146,976 |
Available-for-Sale | 59,602 | 59,894 | 146,978 |
Gross Unrealized Gains | 0 | 0 | 152 |
Gross Unrealized Losses | 533 | 434 | 150 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 42,621 | ||
From 1 - 5 Years | 17,514 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 42,410 | ||
From 1 - 5 Years | 17,192 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 4,831 | 20,348 | 89,563 |
12 Months or Longer | 54,771 | 39,546 | 0 |
Total | $ 59,602 | $ 59,894 | $ 89,563 |
Number of Securities in a Continuous Loss Position | 14 | 14 | 23 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 193 | $ 172 | $ 150 |
12 Months or Longer | 340 | 262 | 0 |
Total | 533 | 434 | 150 |
State and Municipal Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 2,545 | 10,351 | 11,875 |
Available-for-Sale | 2,548 | 10,349 | 11,902 |
Gross Unrealized Gains | 3 | 9 | 27 |
Gross Unrealized Losses | 0 | 11 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 1,346 | ||
From 1 - 5 Years | 719 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 480 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 1,346 | ||
From 1 - 5 Years | 722 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 480 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 1,120 | 8,498 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 1,120 | $ 8,498 | $ 0 |
Number of Securities in a Continuous Loss Position | 5 | 36 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 11 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 11 | 0 |
Mortgage-Backed Securities - Residential | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 284,236 | 229,077 | 152,858 |
Available-for-Sale | 277,461 | 227,596 | 152,806 |
Gross Unrealized Gains | 201 | 485 | 964 |
Gross Unrealized Losses | 6,976 | 1,966 | 1,016 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 1,024 | ||
From 1 - 5 Years | 164,808 | ||
From 5 - 10 Years | 103,597 | ||
Over 10 Years | 14,807 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 1,025 | ||
From 1 - 5 Years | 158,846 | ||
From 5 - 10 Years | 102,800 | ||
Over 10 Years | 14,790 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 167,718 | 70,930 | 85,091 |
12 Months or Longer | 71,433 | 80,759 | 0 |
Total | $ 239,151 | $ 151,689 | $ 85,091 |
Number of Securities in a Continuous Loss Position | 90 | 55 | 31 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 3,165 | $ 363 | $ 1,016 |
12 Months or Longer | 3,811 | 1,603 | 0 |
Total | 6,976 | 1,966 | 1,016 |
Corporate and Other Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 1,000 | 1,000 | 2,500 |
Available-for-Sale | 800 | 800 | 2,299 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 200 | 200 | 201 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 1,000 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 800 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 500 |
12 Months or Longer | 800 | 800 | 1,800 |
Total | $ 800 | $ 800 | $ 2,300 |
Number of Securities in a Continuous Loss Position | 1 | 1 | 3 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 200 | 200 | 201 |
Total | 200 | 200 | 201 |
Mutual Funds and Equity Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 0 | 1,120 | 1,120 |
Available-for-Sale | 0 | 1,561 | 1,474 |
Gross Unrealized Gains | 0 | 441 | 354 |
Gross Unrealized Losses | 0 | 0 | 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 | 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 |
Collateral Pledged | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, Pledged as Collateral | 219,587 | 183,052 | 206,637 |
US Treasury Securities | U.S. Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 0 | 0 | 64,711 |
Available-for-Sale | 0 | 0 | 64,730 |
Agency Securities | U.S. Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 60,135 | 60,328 | 82,265 |
Available-for-Sale | 59,602 | 59,894 | 82,248 |
US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 74,160 | 40,832 | 503 |
Available-for-Sale | 74,098 | 40,832 | 505 |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 210,076 | 188,245 | 152,355 |
Available-for-Sale | $ 203,363 | $ 186,764 | $ 152,301 |
Investment Securities Held to M
Investment Securities Held to Maturity (Details) $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |||
Equity Securities | $ 1,916 | $ 0 | $ 0 |
Held-To-Maturity Securities, at Amortized Cost | 289,952 | 335,907 | 341,526 |
Held-To-Maturity Securities, at Fair Value | 282,719 | 335,901 | 343,899 |
Gross Unrealized Gains | 261 | 1,960 | 3,715 |
Gross Unrealized Losses | 7,494 | 1,966 | 1,342 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 19,381 | ||
From 1 - 5 Years | 141,123 | ||
From 5 - 10 Years | 126,823 | ||
Over 10 Years | 2,625 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 19,396 | ||
From 1 - 5 Years | 138,887 | ||
From 5 - 10 Years | 121,830 | ||
Over 10 Years | 2,606 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 142,319 | 69,412 | 81,782 |
12 Months or Longer | 89,165 | 68,409 | 13,331 |
Total | $ 231,484 | $ 137,821 | $ 95,113 |
Number of Securities in a Continuous Loss Position | 582 | 366 | 259 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 2,746 | $ 498 | $ 1,045 |
12 Months or Longer | 4,748 | 1,468 | 297 |
Total | 7,494 | 1,966 | 1,342 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 239,367 | 275,530 | 277,738 |
Held-To-Maturity Securities, at Fair Value | 233,557 | 275,353 | 279,384 |
Gross Unrealized Gains | 261 | 1,691 | 2,977 |
Gross Unrealized Losses | 6,071 | 1,868 | 1,331 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 19,381 | ||
From 1 - 5 Years | 93,084 | ||
From 5 - 10 Years | 124,277 | ||
Over 10 Years | 2,625 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 19,396 | ||
From 1 - 5 Years | 92,199 | ||
From 5 - 10 Years | 119,356 | ||
Over 10 Years | 2,606 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 95,944 | 55,648 | 78,238 |
12 Months or Longer | 86,378 | 65,152 | 13,331 |
Total | $ 182,322 | $ 120,800 | $ 91,569 |
Number of Securities in a Continuous Loss Position | 535 | 352 | 252 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,443 | $ 442 | $ 1,034 |
12 Months or Longer | 4,628 | 1,425 | 297 |
Total | 6,071 | 1,867 | 1,331 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 50,585 | 60,377 | 63,788 |
Held-To-Maturity Securities, at Fair Value | 49,162 | 60,548 | 64,515 |
Gross Unrealized Gains | 0 | 269 | 738 |
Gross Unrealized Losses | 1,423 | 98 | 11 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 48,039 | ||
From 5 - 10 Years | 2,546 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 46,688 | ||
From 5 - 10 Years | 2,474 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 46,375 | 13,764 | 3,544 |
12 Months or Longer | 2,787 | 3,257 | 0 |
Total | $ 49,162 | $ 17,021 | $ 3,544 |
Number of Securities in a Continuous Loss Position | 47 | 14 | 7 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,303 | $ 56 | $ 11 |
12 Months or Longer | 120 | 43 | 0 |
Total | 1,423 | 99 | 11 |
Corporate and Other Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 0 | 0 | 0 |
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
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 | 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 |
US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 3,147 | 2,680 | 2,792 |
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 | 47,438 | 57,697 | 60,996 |
Collateral Pledged | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, Pledged as Collateral | 268,229 | 318,622 | 325,096 |
Fair Value, Measurements, Recurring | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Equity Securities | 1,916 | ||
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | 2,222 | 2,661 | 2,799 |
Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | $ 46,940 | $ 57,887 | $ 61,716 |
Investment Securities Unrealize
Investment Securities Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net Gain on Securities | $ 114 | $ 10 | $ 355 | $ 10 |
Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period | 0 | 0 | ||
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date | $ 114 | $ 355 |
Loans Supplemental Loan Informa
Loans Supplemental Loan Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |||
Loans Held-for-sale | $ 201 | $ 327 | $ 1,323 |
Credit Card Receivable | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 1 year | ||
Credit Card Receivable | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 5 years | ||
Automobile Loan | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 3 years | ||
Automobile Loan | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 7 years |
Loans Loan Categories and Past
Loans Loan Categories and Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 12,999 | $ 12,708 | $ 10,953 |
Current Loans | 2,113,101 | 1,938,062 | 1,897,846 |
Total Loans | 2,126,100 | 1,950,770 | 1,908,799 |
Loans 90 or More Days Past Due and Still Accruing Interest | 1,172 | 319 | 967 |
Nonaccrual Loans | 4,468 | 5,526 | 5,482 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 8,745 | 8,124 | 7,020 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,354 | 1,743 | 991 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 2,900 | 2,841 | 2,942 |
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 274 | 257 | 224 |
Current Loans | 126,838 | 128,992 | 125,136 |
Total Loans | 127,112 | 129,249 | 125,360 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 674 | 588 | 609 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 198 | 139 | 122 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 19 | 0 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 76 | 99 | 102 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 807 | 807 | 1,249 |
Current Loans | 469,315 | 443,441 | 439,467 |
Total Loans | 470,122 | 444,248 | 440,716 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 807 | 1,530 | 1,249 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 0 | 442 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 807 | 807 | 807 |
Consumer Loans Financing | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 7,452 | 7,619 | 5,986 |
Current Loans | 686,736 | 595,208 | 586,043 |
Total Loans | 694,188 | 602,827 | 592,029 |
Loans 90 or More Days Past Due and Still Accruing Interest | 192 | 6 | 41 |
Nonaccrual Loans | 540 | 653 | 507 |
Consumer Loans Financing | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 5,651 | 5,891 | 4,781 |
Consumer Loans Financing | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,307 | 1,215 | 914 |
Consumer Loans Financing | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 494 | 513 | 291 |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 4,466 | 4,025 | 3,494 |
Current Loans | 830,212 | 770,421 | 747,200 |
Total Loans | 834,678 | 774,446 | 750,694 |
Loans 90 or More Days Past Due and Still Accruing Interest | 980 | 313 | 926 |
Nonaccrual Loans | 2,447 | 2,755 | 3,117 |
Residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 2,896 | 2,094 | 1,675 |
Residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 47 | 509 | 77 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 1,523 | $ 1,422 | $ 1,742 |
Loans Allowance for Loan Losses
Loans Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | $ 19,640 | $ 17,442 | $ 18,586 | $ 17,012 | |
Charge-offs | (325) | (622) | (960) | (1,197) | |
Recoveries | 102 | 75 | 416 | 300 | |
Provision | 586 | 800 | 1,961 | 1,580 | |
Allowance for Loan Losses, Ending Balance | 20,003 | 17,695 | 20,003 | 17,695 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 177 | 138 | 177 | 138 | $ 106 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 19,826 | 17,557 | 19,826 | 17,557 | 18,480 |
Ending Loan Balance - Individually Evaluated for Impairment | 3,423 | 3,275 | 3,423 | 3,275 | 3,683 |
Ending Loan Balance - Collectively Evaluated for Impairment | 2,122,677 | 1,905,524 | 2,122,677 | 1,905,524 | 1,947,087 |
Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 944 | 925 | 1,873 | 1,017 | |
Charge-offs | 0 | 0 | (16) | (2) | |
Recoveries | 0 | 1 | 1 | 8 | |
Provision | 99 | (46) | (815) | (143) | |
Allowance for Loan Losses, Ending Balance | 1,043 | 880 | 1,043 | 880 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 84 | 104 | 84 | 104 | 94 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 959 | 776 | 959 | 776 | 1,779 |
Ending Loan Balance - Individually Evaluated for Impairment | 489 | 489 | 489 | 489 | 489 |
Ending Loan Balance - Collectively Evaluated for Impairment | 126,623 | 124,871 | 126,623 | 124,871 | 128,760 |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 5,838 | 4,983 | 4,504 | 5,677 | |
Charge-offs | 0 | (342) | 0 | (342) | |
Recoveries | 0 | 0 | 12 | 0 | |
Provision | 81 | 446 | 1,403 | (248) | |
Allowance for Loan Losses, Ending Balance | 5,919 | 5,087 | 5,919 | 5,087 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 45 | 0 | 45 | 0 | 2 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 5,874 | 5,087 | 5,874 | 5,087 | 4,502 |
Ending Loan Balance - Individually Evaluated for Impairment | 812 | 1,543 | 812 | 1,543 | 1,537 |
Ending Loan Balance - Collectively Evaluated for Impairment | 469,310 | 439,172 | 469,310 | 439,172 | 442,711 |
Consumer Loans Financing | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 8,337 | 7,305 | 7,604 | 6,120 | |
Charge-offs | (300) | (280) | (895) | (847) | |
Recoveries | 102 | 74 | 403 | 292 | |
Provision | 551 | 509 | 1,578 | 2,043 | |
Allowance for Loan Losses, Ending Balance | 8,690 | 7,608 | 8,690 | 7,608 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 8,690 | 7,608 | 8,690 | 7,608 | 7,604 |
Ending Loan Balance - Individually Evaluated for Impairment | 109 | 104 | 109 | 104 | 95 |
Ending Loan Balance - Collectively Evaluated for Impairment | 694,079 | 591,925 | 694,079 | 591,925 | 602,732 |
Residential | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,521 | 4,229 | 4,605 | 4,198 | |
Charge-offs | (25) | 0 | (49) | (6) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (145) | (109) | (205) | (72) | |
Allowance for Loan Losses, Ending Balance | 4,351 | 4,120 | 4,351 | 4,120 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 48 | 34 | 48 | 34 | 10 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 4,303 | 4,086 | 4,303 | 4,086 | 4,595 |
Ending Loan Balance - Individually Evaluated for Impairment | 2,013 | 1,139 | 2,013 | 1,139 | 1,562 |
Ending Loan Balance - Collectively Evaluated for Impairment | $ 832,665 | $ 749,556 | $ 832,665 | $ 749,556 | $ 772,884 |
Loans Credit Quality Indicators
Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 559,331 | $ 542,323 | $ 532,307 |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 5,949 | 1,518 | 2,795 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 31,147 | 28,849 | 30,166 |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 807 | 807 |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,525,879 | 1,373,752 | 1,338,151 |
Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 2,987 | 3,727 | 4,573 |
Commercial | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 119,217 | 124,961 | 120,622 |
Commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 5,949 | 1,341 | 1,394 |
Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,946 | 2,947 | 3,344 |
Commercial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 440,114 | 417,362 | 411,685 |
Commercial Real Estate Portfolio Segment | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 0 | 177 | 1,401 |
Commercial Real Estate Portfolio Segment | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 29,201 | 25,902 | 26,822 |
Commercial Real Estate Portfolio Segment | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 807 | 807 |
Consumer Loans Financing | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 693,648 | 602,168 | 591,499 |
Consumer Loans Financing | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 540 | 659 | 530 |
Residential | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 832,231 | 771,584 | 746,652 |
Residential | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 2,447 | $ 3,068 | $ 4,043 |
Loans Impaired Loans (Details)
Loans Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Recorded Investment: | |||||
With No Related Allowance | $ 1,825 | $ 1,773 | $ 1,825 | $ 1,773 | $ 2,144 |
With a Related Allowance | 1,622 | 1,502 | 1,622 | 1,502 | 1,543 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 1,847 | 1,758 | 1,847 | 1,758 | 2,185 |
With a Related Allowance | 1,576 | 1,500 | 1,576 | 1,500 | 1,498 |
Average Recorded Balance: | |||||
With No Related Allowance | 1,482 | 1,921 | 1,985 | 1,927 | |
With a Related Allowance | 1,622 | 1,147 | 1,583 | 752 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 1 | 0 | 3 | |
With a Related Allowance | 0 | 0 | 20 | 4 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial | |||||
Recorded Investment: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 475 | 489 | 475 | 489 | 485 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 489 | 489 | 489 | 489 | 489 |
Average Recorded Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 478 | 496 | 480 | 245 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial Real Estate Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 5 | 818 | 5 | 818 | 781 |
With a Related Allowance | 801 | 725 | 801 | 725 | 725 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 5 | 818 | 5 | 818 | 816 |
With a Related Allowance | 807 | 723 | 807 | 723 | 721 |
Average Recorded Balance: | |||||
With No Related Allowance | 7 | 998 | 393 | 854 | |
With a Related Allowance | 794 | 363 | 763 | 363 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 108 | 104 | 108 | 104 | 94 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 109 | 90 | 109 | 90 | 95 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 104 | 96 | 101 | 98 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 1 | 0 | 3 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Residential | |||||
Recorded Investment: | |||||
With No Related Allowance | 1,712 | 851 | 1,712 | 851 | 1,269 |
With a Related Allowance | 346 | 288 | 346 | 288 | 333 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 1,733 | 850 | 1,733 | 850 | 1,274 |
With a Related Allowance | 280 | 288 | 280 | 288 | $ 288 |
Average Recorded Balance: | |||||
With No Related Allowance | 1,371 | 827 | 1,491 | 975 | |
With a Related Allowance | 350 | 288 | 340 | 144 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 20 | 4 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Loans Modified in Trouble
Loans Loans Modified in Trouble Debt Restructurings (Details) - Entity Loan Modification Program - Payment Deferral $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 1 | 3 | 5 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 16 | $ 750 | $ 44 | $ 1,279 |
Post-Modification Outstanding Recorded Investment | $ 16 | $ 750 | $ 44 | $ 1,279 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 1 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 725 | $ 0 | $ 1,228 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 725 | $ 0 | $ 1,228 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans Financing | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 1 | 2 | 5 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 16 | $ 25 | $ 44 | $ 51 |
Post-Modification Outstanding Recorded Investment | $ 16 | $ 25 | $ 44 | $ 51 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 335,587 | $ 315,256 | $ 316,449 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 4,016 | 3,526 | 3,672 |
Fair Value | $ 4 | $ 23 | $ 18 |
Minimum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 1.00% | ||
Maximum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loan commitments, fixed fee percent | 3.00% |
Comprehensive Income Other Comp
Comprehensive Income Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||||
Schedule of Comprehensive Income [Line Items] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 0 | $ 6 | $ 0 | $ 6 | [1] | |||
Other Comprehensive Income, before Tax | (1,095) | 172 | (5,063) | 1,268 | ||||
Other Comprehensive Income, Tax | 278 | (107) | 1,287 | (569) | ||||
Net current-period other comprehensive income (loss) | (817) | 65 | (3,776) | 699 | ||||
Unrealized Gains and Losses on Available for Sale Securities | ||||||||
Schedule of Comprehensive Income [Line Items] | ||||||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period Before Tax | (1,203) | 6 | (5,388) | 749 | ||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period, Tax | 306 | 3 | 1,371 | (284) | ||||
Other comprehensive income or loss before reclassifications | (897) | 9 | [1] | (4,017) | [1] | 465 | [1] | |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 10 | 10 | ||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (4) | (4) | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (6) | (6) | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | (6) | 0 | (6) | ||||
Net current-period other comprehensive income (loss) | [1] | (897) | 3 | (4,017) | 459 | |||
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||||||
Schedule of Comprehensive Income [Line Items] | ||||||||
Other comprehensive income or loss before reclassifications | [1] | 0 | 0 | 0 | 0 | |||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 81 | 179 | 244 | 537 | ||||
Reclassification from Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (21) | (115) | (63) | (292) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | 60 | 64 | 181 | 245 | |||
Net current-period other comprehensive income (loss) | [1] | 60 | 64 | 181 | 245 | |||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service | ||||||||
Schedule of Comprehensive Income [Line Items] | ||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 27 | (3) | 81 | (8) | ||||
Reclassification from Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (7) | 1 | (21) | 3 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 20 | $ (2) | $ 60 | $ (5) | ||||
[1] | All amounts are net of tax. |
Comprehensive Income Changes in
Comprehensive Income Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Net current-period other comprehensive income (loss) | $ (817) | $ 65 | $ (3,776) | $ 699 | |||||
Unrealized Gains and Losses on Available for Sale Securities | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Stockholders' Equity, Period Start | [1] | (4,701) | 74 | (1,250) | (382) | ||||
Other comprehensive income or loss before reclassifications | (897) | 9 | [1] | (4,017) | [1] | 465 | [1] | ||
Amounts reclassified from accumulated other comprehensive income | [1] | (6) | 0 | (6) | |||||
Net current-period other comprehensive income (loss) | [1] | (897) | 3 | (4,017) | 459 | ||||
Amounts reclassified from accumulated other comprehensive income | [1] | $ (331) | |||||||
Stockholders' Equity, Period End | [1] | (5,598) | 77 | (5,598) | 77 | ||||
Amortization of Net Retirement Plan Actuarial Gain (Loss) | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Stockholders' Equity, Period Start | [1] | (6,259) | (5,556) | (6,380) | (5,737) | ||||
Other comprehensive income or loss before reclassifications | [1] | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | [1] | 60 | 64 | 181 | 245 | ||||
Net current-period other comprehensive income (loss) | [1] | 60 | 64 | 181 | 245 | ||||
Stockholders' Equity, Period End | [1] | (6,199) | (5,492) | (6,199) | (5,492) | ||||
Accretion of Net Retirement Plan Prior Service (Cost) Credit | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Stockholders' Equity, Period Start | [1] | (844) | (718) | (884) | (715) | ||||
Other comprehensive income or loss before reclassifications | [1] | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | [1] | 20 | (2) | 60 | (5) | ||||
Net current-period other comprehensive income (loss) | [1] | 20 | (2) | 60 | (5) | ||||
Stockholders' Equity, Period End | [1] | (824) | (720) | (824) | (720) | ||||
Accumulated Other Comprehensive Loss | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Stockholders' Equity, Period Start | [1] | (11,804) | (6,200) | (8,514) | (6,834) | ||||
Other comprehensive income or loss before reclassifications | [1] | (897) | 9 | (4,017) | 465 | ||||
Amounts reclassified from accumulated other comprehensive income | [1] | 80 | 56 | 241 | 234 | ||||
Net current-period other comprehensive income (loss) | [1] | (817) | 65 | (3,776) | 699 | ||||
Amounts reclassified from accumulated other comprehensive income | [1] | $ (331) | |||||||
Stockholders' Equity, Period End | [1] | $ (12,621) | $ (6,135) | $ (12,621) | $ (6,135) | ||||
[1] | All amounts are net of tax. |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for Income Taxes | $ 2,475 | $ 3,027 | $ 6,855 | $ 8,735 |
Net Income | (80) | (56) | (241) | (234) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | 0 | 10 | 0 | 10 |
Total before tax | 0 | 10 | 0 | 10 |
Provision for Income Taxes | 0 | (4) | 0 | (4) |
Net Income | 0 | 6 | 0 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | Accretion of Net Retirement Plan Prior Service (Cost) Credit | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | (27) | 3 | (81) | 8 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Nonoperating Income (Expense) | (81) | (179) | (244) | (537) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (108) | (176) | (325) | (529) |
Provision for Income Taxes | 28 | 114 | 84 | 289 |
Net Income | $ (80) | $ (62) | $ (241) | $ (240) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 9 Months Ended | ||
Sep. 30, 2018plan$ / sharesshares | Sep. 27, 2018 | Sep. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of plans | plan | 3 | ||
Stock dividend, percent | 3.00% | 3.00% | |
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: | |||
Fair Value, in dollars per share | $ 5.59 | ||
Dividend Yield | 2.98% | ||
Expected Volatility | 21.55% | ||
Risk Free Interest Rate | 2.68% | ||
Expected Lives, in years | 6 years 11 months 23 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 | ||
Roll-Forward of Shares Outstanding: | |||
Outstanding, Beginning of Period, in shares | shares | 356,540 | ||
Granted, in shares | shares | 56,843 | ||
Exercised, in shares | shares | (94,742) | ||
Forfeited, in shares | shares | (14,953) | ||
Outstanding, End of Period, in shares | shares | 303,688 | ||
Exercisable at Period End, in shares | shares | 185,547 | ||
Vested and Expected to Vest, in shares | shares | 118,141 | ||
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: | |||
Outstanding at Beginning of Period, in dollars per share | $ 23.42 | ||
Granted, in dollars per share | 29.95 | ||
Exercised, in dollars per share | 20.85 | ||
Forfeited, in dollars per share | 26.61 | ||
Outstanding, End of Period, in dollars per share | 25.24 | ||
Exercisable at Period End, in dollars per share | 22.47 | ||
Vested and Expected to Vest, in dollars per share | $ 29.59 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSU) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Roll-Forward of Restricted Stock Units | |
Balance at Beginning of Period, in units | shares | 0 |
Granted, in units | shares | 3,377 |
Vested, in units | shares | 0 |
Canceled, in units | shares | 0 |
Balance at End of Period, in units | shares | 3,377 |
Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value: | |
Outstanding at Beginning of period, in dollars per unit | $ / shares | $ 0 |
Granted, in dollars per unit | $ / shares | 32.57 |
Vested, in dollars per unit | $ / shares | 0 |
Canceled, in dollars per unit | $ / shares | 0 |
Outstanding at End of period, in dollars per unit | $ / shares | $ 32.57 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-Based Compensation Expense | $ 89 | $ 90 | $ 267 | $ 262 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount from market price, percent | 5.00% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Periodic Benefit Cost [Line Items] | ||||
Employer matching contribution, Percentage | 5.00% | |||
Employees' Pension Plan | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | $ 389 | $ 350 | $ 1,168 | $ 1,050 |
Interest Cost | 400 | 362 | 1,199 | 1,085 |
Expected Return on Plan Assets | (841) | (800) | (2,522) | (2,399) |
Amortization of Prior Service (Credit) Cost | (12) | (14) | (37) | (43) |
Amortization of Net Loss | 48 | 148 | 145 | 443 |
Net Periodic (Benefit) Cost | (16) | 46 | (47) | 136 |
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] | ||||
Service Cost | 104 | 10 | 311 | 30 |
Interest Cost | 48 | 55 | 152 | 164 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | 14 | 14 | 43 | 43 |
Amortization of Net Loss | 33 | 31 | 99 | 94 |
Net Periodic (Benefit) Cost | 199 | 110 | 605 | 331 |
Plan Contributions During the Period | 116 | 116 | 349 | 345 |
Estimated Future Contributions in the Current Fiscal Year | 0 | 0 | ||
Post-Retirement Benefit Plans | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | 34 | 37 | 102 | 110 |
Interest Cost | 81 | 75 | 248 | 224 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | 25 | (3) | 75 | (8) |
Amortization of Net Loss | 0 | 0 | 0 | 0 |
Net Periodic (Benefit) Cost | 140 | 109 | 425 | 326 |
Plan Contributions During the Period | 56 | $ 65 | 175 | $ 295 |
Estimated Future Contributions in the Current Fiscal Year | $ 0 | $ 0 | ||
On Or Subsequent to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 6.00% | |||
Minimum | Prior to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 6.00% | |||
Maximum | Prior to January 1, 2003 | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service credits, percent of eligible salaries | 12.00% |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 27, 2018 | Sep. 28, 2017 | ||||||
Earnings Per Share [Abstract] | |||||||||||
Stock dividend, percent | 3.00% | 3.00% | |||||||||
Net Income | $ 9,260 | $ 7,416 | $ 27,521 | $ 21,255 | |||||||
Weighted Average Shares- Basic, in shares | 14,431 | [1] | 14,305 | [2] | 14,393 | [1] | 14,306 | [2] | |||
Earnings Per Share- Basic, in dollars per share | $ 0.64 | [1] | $ 0.52 | [1] | $ 1.91 | [1] | $ 1.49 | [2] | |||
Dilutive Average Shares Attributable to Stock Options | 89 | 80 | 86 | 95 | |||||||
Weighted Average Shares- Diluted, in shares | [2] | 14,520 | 14,385 | 14,479 | 14,401 | ||||||
Earnings Per Share- Diluted, in dollars per share | $ 0.64 | [1] | $ 0.52 | [1] | $ 1.90 | [1] | $ 1.48 | [2] | |||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend. | ||||||||||
[2] | Share and Per Share Amounts have been restated for the September 27, 2018 3% stock dividend. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 340,411 | $ 300,200 | $ 315,459 |
Equity Securities | 1,916 | 0 | 0 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 340,411 | ||
Equity Securities | 1,916 | ||
Total Securities Measured on a Recurring Basis | 342,327 | ||
Securities Available-for-Sale | 300,200 | 315,459 | |
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 | 0 | ||
Equity Securities | 0 | ||
Total Securities Measured on a Recurring Basis | 0 | ||
Securities Available-for-Sale | 0 | 64,730 | |
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 | 340,411 | ||
Equity Securities | 1,916 | ||
Total Securities Measured on a Recurring Basis | 342,327 | ||
Securities Available-for-Sale | 300,200 | 250,729 | |
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 | 0 | ||
Equity Securities | 0 | ||
Total Securities Measured on a Recurring Basis | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Gain (Loss) on Collateral Dependent Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 1,220 | 1,847 | 1,713 |
Gain (Loss) Other Real Estate and Repossessed Assets, Net | (559) | (569) | (655) |
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] | |||
Impaired Loans | 0 | ||
Other Real Estate 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] | |||
Impaired Loans | 0 | ||
Other Real Estate 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] | |||
Impaired Loans | 0 | ||
Other Real Estate and Repossessed Assets, Net | 1,220 | 1,847 | 1,713 |
U.S. Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,602 | 59,894 | 146,978 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 59,602 | ||
Securities Available-for-Sale | 59,894 | 146,978 | |
U.S. 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 | 0 | ||
Securities Available-for-Sale | 0 | 64,730 | |
U.S. 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 | 59,602 | ||
Securities Available-for-Sale | 59,894 | 82,248 | |
U.S. 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 | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 2,548 | 10,349 | 11,902 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 2,548 | ||
Securities Available-for-Sale | 10,349 | 11,902 | |
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 | 0 | ||
Securities Available-for-Sale | 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 | 2,548 | ||
Securities Available-for-Sale | 10,349 | 11,902 | |
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 | 0 | ||
Securities Available-for-Sale | 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 | 277,461 | ||
Securities Available-for-Sale | 227,596 | 152,806 | |
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 | 0 | ||
Securities Available-for-Sale | 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 | 277,461 | ||
Securities Available-for-Sale | 227,596 | 152,806 | |
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 | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Corporate and Other Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800 | 800 | 2,299 |
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 | 800 | ||
Securities Available-for-Sale | 800 | 2,299 | |
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 | 0 | ||
Securities Available-for-Sale | 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 | 800 | ||
Securities Available-for-Sale | 800 | 2,299 | |
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 | 0 | ||
Securities Available-for-Sale | 0 | 0 | |
Mutual Funds and Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 1,561 | 1,474 |
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities | 1,474 | ||
Securities Available-for-Sale | 1,561 | ||
Mutual Funds and Equity 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] | |||
Equity Securities | 0 | ||
Securities Available-for-Sale | 0 | ||
Mutual Funds and Equity Securities | 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 | 1,474 | ||
Securities Available-for-Sale | 1,561 | ||
Mutual Funds and Equity Securities | 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 | ||
Securities Available-for-Sale | $ 0 | ||
Collateral Pledged | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 857 | 1,502 | |
Gain (Loss) on Collateral Dependent Impaired Loans | (58) | (138) | |
Collateral Pledged | 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] | |||
Impaired Loans | 0 | 0 | |
Collateral Pledged | Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | |
Collateral Pledged | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | $ 857 | $ 1,502 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | $ 92,295 | $ 72,838 | $ 80,666 | $ 57,355 |
Available-for-Sale | 340,411 | 300,200 | 315,459 | |
Held-To-Maturity Securities, at Amortized Cost | 289,952 | 335,907 | 341,526 | |
Held-To-Maturity Securities, at Fair Value | 282,719 | 335,901 | 343,899 | |
Equity Securities | 1,916 | 0 | 0 | |
Net Loans | 2,106,097 | 1,932,184 | 1,891,104 | |
Deposits | 2,407,855 | 2,245,116 | 2,307,116 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 64,966 | 61,419 | ||
Federal Home Loan Bank Overnight Advances | 105,000 | 33,000 | ||
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | ||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | ||
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 92,295 | 80,666 | ||
Available-for-Sale | 340,411 | |||
Securities Available-for-Sale | 300,200 | 315,459 | ||
Held-To-Maturity Securities, at Amortized Cost | 289,952 | 335,907 | 341,526 | |
Equity Securities | 1,916 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock | 10,866 | 9,949 | 6,704 | |
Net Loans | 2,106,097 | 1,932,184 | 1,891,104 | |
Accrued Interest Receivable | 8,028 | 6,753 | 6,563 | |
Deposits | 2,407,855 | 2,245,116 | 2,307,116 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 62,503 | 64,966 | 61,419 | |
Federal Home Loan Bank Overnight Advances | 131,000 | 105,000 | 33,000 | |
Federal Home Loan Bank Term Advances | 45,000 | 55,000 | 55,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 485 | 410 | 260 | |
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 92,295 | 72,838 | 80,666 | |
Available-for-Sale | 340,411 | |||
Securities Available-for-Sale | 300,200 | 315,459 | ||
Held-To-Maturity Securities, at Fair Value | 282,719 | 335,901 | 343,899 | |
Equity Securities | 1,916 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 10,866 | 9,949 | 6,704 | |
Net Loans, at Fair Value | 2,030,278 | 1,901,046 | 1,870,379 | |
Accrued Interest Receivable, Fair Value Disclosure | 8,028 | 6,753 | 7,692 | |
Deposits, at Fair Value | 2,398,987 | 2,236,548 | 2,299,011 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 62,503 | 64,966 | 61,419 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 131,000 | 105,000 | 33,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 44,488 | 54,781 | 55,110 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 485 | 410 | 260 | |
Quoted Prices In Active Markets for Indentical Assets (Level 1) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 92,295 | 72,838 | 80,666 | |
Available-for-Sale | 0 | |||
Securities Available-for-Sale | 0 | 64,730 | ||
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, at Fair Value | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | 0 | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 340,411 | |||
Securities Available-for-Sale | 300,200 | 250,729 | ||
Held-To-Maturity Securities, at Fair Value | 282,719 | 335,901 | 343,899 | |
Equity Securities | 1,916 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 10,866 | 9,949 | 6,704 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 8,028 | 6,753 | 7,692 | |
Deposits, at Fair Value | 2,398,987 | 2,236,548 | 2,299,011 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 62,503 | 64,966 | 61,419 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 131,000 | 105,000 | 33,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 44,488 | 54,781 | 55,110 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 485 | 410 | 260 | |
Significant Unobservable Inputs (Level 3) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 0 | |||
Securities Available-for-Sale | 0 | 0 | ||
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans, at Fair Value | 2,030,278 | 1,901,046 | 1,870,379 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, at Fair Value | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |