Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Arrow Financial Corporation | |
Entity Central Index Key | 0000717538 | |
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 | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,519,270 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
ASSETS | |||
Cash and Due From Banks | $ 34,650 | $ 56,529 | $ 38,552 |
Interest-Bearing Deposits at Banks | 28,045 | 27,710 | 22,189 |
Investment Securities: | |||
Available-for-Sale | 285,878 | 317,535 | 325,387 |
Held-to-Maturity (Approximate Fair Value of $266,068 at June 30, 2019; $280,338 at December 31, 2018; and $292,605 at June 30, 2018) | 262,541 | 283,476 | 297,885 |
Equity Securities | 1,850 | 1,774 | 1,802 |
Other Investments | 8,202 | 15,506 | 11,089 |
Loans | 2,280,308 | 2,196,215 | 2,057,862 |
Allowance for Loan Losses | (20,695) | (20,196) | (19,640) |
Net Loans | 2,259,613 | 2,176,019 | 2,038,222 |
Premises and Equipment, Net | 38,836 | 30,446 | 28,104 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 1,730 | 1,852 | 2,060 |
Other Assets | 62,532 | 55,614 | 58,008 |
Total Assets | 3,005,750 | 2,988,334 | 2,845,171 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 467,179 | 472,768 | 467,048 |
Interest-Bearing Checking Accounts | 741,395 | 790,781 | 861,959 |
Savings Deposits | 908,642 | 818,048 | 735,217 |
Time Deposits over $250,000 | 97,220 | 73,583 | 70,950 |
Other Time Deposits | 289,317 | 190,404 | 169,607 |
Total Deposits | 2,503,753 | 2,345,584 | 2,304,781 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 51,149 | 54,659 | 60,248 |
Federal Home Loan Bank Overnight Advances | 83,000 | 234,000 | 136,000 |
Federal Home Loan Bank Term Advances | 30,000 | 45,000 | 45,000 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 |
Finance Leases | 5,270 | ||
Other Liabilities | 27,929 | 19,507 | 19,654 |
Total Liabilities | 2,721,101 | 2,718,750 | 2,585,683 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2019; $5 Par Value and 1,000,000 Shares Authorized at December 31, 2018 and June 30, 2018 | 0 | 0 | 0 |
Common Stock, $1 Par Value; 30,000,000 Shares Authorized at June 30, 2019 and 20,000,000 Shares Authorized at December 31, 2018 and June 30, 2018 (19,035,565 Shares Issued at June 30, 2019 and December 31, 2018 and 18,481,301 at June 30, 2018) | 19,035 | 19,035 | 18,481 |
Additional Paid-in Capital | 316,229 | 314,533 | 292,020 |
Retained Earnings | 39,397 | 29,257 | 40,326 |
Unallocated ESOP Shares (5,001 Shares at June 30, 2019; 5,001 Shares at December 31, 2018 and 9,643 Shares at June 30, 2018) | (100) | (100) | (200) |
Accumulated Other Comprehensive Loss | (9,647) | (13,810) | (11,804) |
Treasury Stock, at Cost (4,517,412 Shares at June 30, 2019; 4,558,207 Shares at December 31, 2018 and 4,467,909 Shares at June 30, 2018) | (80,265) | (79,331) | (79,335) |
Total Stockholders’ Equity | 284,649 | 269,584 | 259,488 |
Total Liabilities and Stockholders’ Equity | $ 3,005,750 | $ 2,988,334 | $ 2,845,171 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Held-to-maturity securities, at fair value | $ 266,068 | $ 280,338 | $ 292,605 |
Preferred Stock, par value (in dollars per share) | $ 1 | $ 5 | $ 5 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common Stock, shares authorized (in shares) | 30,000,000 | 20,000,000 | 20,000,000 |
Common Stock, shares issued (in shares) | 19,035,565 | 19,035,565 | 18,481,301 |
Unallocated ESOP Shares (in shares) | 5,001 | 5,001 | 9,643 |
Treasury Stock (in shares) | 4,517,412 | 4,558,207 | 4,467,909 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
INTEREST AND DIVIDEND INCOME | |||||||||
Interest and Fees on Loans | $ 23,520 | $ 19,909 | $ 45,923 | $ 38,767 | |||||
Interest on Deposits at Banks | 195 | 158 | 390 | 292 | |||||
Interest and Dividends on Investment Securities: | |||||||||
Fully Taxable | 2,284 | 2,048 | 4,653 | 3,941 | |||||
Exempt from Federal Taxes | 1,228 | 1,475 | 2,474 | 3,008 | |||||
Total Interest and Dividend Income | 27,227 | 23,590 | 53,440 | 46,008 | |||||
INTEREST EXPENSE | |||||||||
Interest-Bearing Checking Accounts | 453 | 388 | 935 | 775 | |||||
Savings Deposits | 2,008 | 711 | 3,609 | 1,233 | |||||
Time Deposits over $250,000 | 515 | 328 | 911 | 532 | |||||
Other Time Deposits | 1,131 | 282 | 1,844 | 541 | |||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 25 | 16 | 47 | 32 | |||||
Federal Home Loan Bank Advances | 1,099 | 656 | 2,693 | 1,070 | |||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 261 | 247 | 530 | 461 | |||||
Interest on Financing Leases | 28 | 0 | 43 | 0 | |||||
Total Interest Expense | 5,520 | 2,628 | 10,612 | 4,644 | |||||
NET INTEREST INCOME | 21,707 | 20,962 | 42,828 | 41,364 | |||||
Provision for Loan Losses | 455 | 629 | 927 | 1,375 | |||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 21,252 | 20,333 | 41,901 | 39,989 | |||||
NONINTEREST INCOME | |||||||||
Insurance Commissions | 1,935 | 2,192 | 3,654 | 4,095 | |||||
Net Gain on Securities Transactions | 0 | 223 | 76 | 241 | |||||
Net Gain on Sales of Loans | 140 | 23 | 244 | 61 | |||||
Other Operating Income | 24 | 256 | 503 | 609 | |||||
Total Noninterest Income | 6,896 | 7,911 | 13,783 | 14,800 | |||||
NONINTEREST EXPENSE | |||||||||
Salaries and Employee Benefits | 9,727 | 9,812 | 19,046 | 19,181 | |||||
Occupancy Expenses, Net | 1,279 | 1,270 | 2,699 | 2,610 | |||||
Technology and Equipment Expense | 3,243 | 2,849 | 6,384 | 5,547 | |||||
FDIC Assessments | 212 | 223 | 424 | 440 | |||||
Other Operating Expense | 2,447 | 2,038 | 5,007 | 4,370 | |||||
Total Noninterest Expense | 16,908 | 16,192 | 33,560 | 32,148 | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 11,240 | 12,052 | 22,124 | 22,641 | |||||
Provision for Income Taxes | 2,306 | 2,322 | 4,456 | 4,380 | |||||
NET INCOME | $ 8,934 | $ 9,730 | $ 17,668 | $ 18,261 | |||||
Average Shares Outstanding: | |||||||||
Basic (in shares) | 14,487 | [1] | 14,394 | [2] | 14,478 | [1] | 14,374 | [2] | |
Diluted (in shares) | [2] | 14,527 | 14,480 | 14,523 | 14,459 | ||||
Per Common Share: | |||||||||
Basic Earnings (in dollars per share) | $ 0.62 | [1] | $ 0.68 | [1] | $ 1.22 | [1] | $ 1.27 | [2] | |
Diluted Earnings (in dollars per share) | $ 0.62 | [1] | $ 0.67 | [1] | $ 1.22 | [1] | $ 1.26 | [2] | |
Fiduciary and Trust | |||||||||
NONINTEREST INCOME | |||||||||
Revenue from Contract with Customer | $ 2,252 | $ 2,647 | $ 4,359 | $ 4,844 | |||||
Deposit Account | |||||||||
NONINTEREST INCOME | |||||||||
Revenue from Contract with Customer | $ 2,545 | $ 2,570 | $ 4,947 | $ 4,950 | |||||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend. | ||||||||
[2] | 2018 Share and Per Share Amounts have been restated for the September 27, 2018 3% stock dividend. |
Consolidated Statements of In_2
Consolidated Statements of Income Consolidated Statements of Income (Parenthetical) | Sep. 27, 2018 |
Income Statement [Abstract] | |
Stock dividend, percent | 3.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 8,934 | $ 9,730 | $ 17,668 | $ 18,261 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | 1,744 | (635) | 3,824 | (3,120) |
Amortization of Net Retirement Plan Actuarial Loss | 133 | 75 | 254 | 121 |
Amortization of Net Retirement Plan Prior Service Cost | 43 | 41 | 85 | 40 |
Other Comprehensive Income (Loss) | 1,920 | (519) | 4,163 | (2,959) |
Comprehensive Income | $ 10,854 | $ 9,211 | $ 21,831 | $ 15,302 |
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, 2017 | $ 249,603 | $ 18,481 | $ 290,219 | $ 28,818 | $ (200) | $ (8,514) | $ (79,201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 18,261 | 18,261 | ||||||
Other Comprehensive Income (Loss) | (2,959) | (2,959) | ||||||
Cash Dividends Paid | [1] | (6,982) | (6,982) | |||||
Stock Options Exercised, Net | 1,692 | 804 | 888 | |||||
Shares Issued Under the Directors' Stock Plan | 103 | 72 | 31 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 252 | 167 | 85 | |||||
Shares Issued for Dividend Reinvestment Plans | 856 | 580 | 276 | |||||
Stock-Based Compensation Expense | 178 | 178 | ||||||
Purchases of Treasury Stock | (1,414) | (1,414) | ||||||
Stockholders' equity, ending balance at Jun. 30, 2018 | 259,488 | 18,481 | 292,020 | 40,326 | (200) | (11,804) | (79,335) | |
Stockholders' equity, beginning balance at Mar. 31, 2018 | 252,734 | 18,481 | 290,980 | 34,093 | (200) | (11,285) | (79,335) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 9,730 | 9,730 | ||||||
Other Comprehensive Income (Loss) | (519) | (519) | ||||||
Cash Dividends Paid | [1] | (3,497) | (3,497) | |||||
Stock Options Exercised, Net | 1,082 | 497 | 585 | |||||
Shares Issued Under the Directors' Stock Plan | 103 | 72 | 31 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 136 | 91 | 45 | |||||
Shares Issued for Dividend Reinvestment Plans | 425 | 291 | 134 | |||||
Stock-Based Compensation Expense | 89 | 89 | ||||||
Purchases of Treasury Stock | (795) | (795) | ||||||
Stockholders' equity, ending balance at Jun. 30, 2018 | 259,488 | 18,481 | 292,020 | 40,326 | (200) | (11,804) | (79,335) | |
Stockholders' equity, beginning balance at Dec. 31, 2018 | 269,584 | 19,035 | 314,533 | 29,257 | (100) | (13,810) | (79,331) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 17,668 | 17,668 | ||||||
Other Comprehensive Income (Loss) | 4,163 | 4,163 | ||||||
Cash Dividends Paid | (7,528) | (7,528) | ||||||
Stock Options Exercised, Net | 1,325 | 638 | 687 | |||||
Shares Issued Under the Directors' Stock Plan | 130 | 86 | 44 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 250 | 163 | 87 | |||||
Shares Issued for Dividend Reinvestment Plans | 904 | 615 | 289 | |||||
Stock-Based Compensation Expense | 194 | 194 | ||||||
Purchases of Treasury Stock | (2,041) | (2,041) | ||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | 284,649 | 19,035 | 316,229 | 39,397 | (100) | (9,647) | (80,265) | |
Stockholders' equity, beginning balance at Mar. 31, 2019 | 276,609 | 19,035 | 315,262 | 34,231 | (100) | (11,567) | (80,252) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 8,934 | 8,934 | ||||||
Other Comprehensive Income (Loss) | 1,920 | 1,920 | ||||||
Cash Dividends Paid | (3,768) | (3,768) | ||||||
Stock Options Exercised, Net | 790 | 389 | 401 | |||||
Shares Issued Under the Directors' Stock Plan | 130 | 86 | 44 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 133 | 87 | 46 | |||||
Shares Issued for Dividend Reinvestment Plans | 451 | 306 | 145 | |||||
Stock-Based Compensation Expense | 99 | 99 | ||||||
Purchases of Treasury Stock | (649) | (649) | ||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | $ 284,649 | $ 19,035 | $ 316,229 | $ 39,397 | $ (100) | $ (9,647) | $ (80,265) | |
[1] | 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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash Dividends Paid, per Share (in dollars per share) | $ 0.26 | $ 0.242 | $ 0.52 | $ 0.485 |
Exercised (in shares) | 36,577 | 51,339 | 62,712 | 79,001 |
Shares Issued Under Directors Stock Plan (in shares) | 3,997 | 2,705 | 3,997 | 2,705 |
Shares Issued Under Employee Stock Purchase Plan (in shares) | 4,239 | 3,939 | 7,948 | 7,613 |
Shares Issued for Dividend Reinvestment Plans (in shares) | 13,566 | 11,846 | 26,698 | 24,305 |
Purchase of Treasury Stock (in shares) | 19,708 | 21,294 | 60,560 | 40,009 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 17,668 | $ 18,261 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Loan Losses | 927 | 1,375 |
Depreciation and Amortization | 2,516 | 2,408 |
Net Gain on Securities Transactions | (76) | (241) |
Loans Originated and Held-for-Sale | (10,310) | (2,354) |
Proceeds from the Sale of Loans Held-for-Sale | 9,336 | 2,198 |
Net Gain on the Sale of Loans | (244) | (61) |
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 432 | 117 |
Contributions to Retirement Benefit Plans | (324) | (352) |
Deferred Income Tax Benefit | (569) | (261) |
Shares Issued Under the Directors’ Stock Plan | 130 | 103 |
Stock-Based Compensation Expense | 194 | 178 |
Tax Benefit from Exercise of Stock Options | 179 | 160 |
Net (Increase) Decrease in Other Assets | (2,062) | 186 |
Net Increase (Decrease) in Other Liabilities | 3,294 | (673) |
Net Cash Provided By Operating Activities | 21,091 | 21,044 |
Cash Flows from Investing Activities: | ||
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 51,686 | 25,035 |
Purchases of Securities Available-for-Sale | (15,390) | (56,598) |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 22,608 | 39,616 |
Purchases of Securities Held-to-Maturity | (2,095) | (2,105) |
Net Increase in Loans | (84,695) | (107,598) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 779 | 644 |
Purchase of Premises and Equipment | (4,389) | (1,395) |
Proceeds from the Sale of a Subsidiary, Net | 0 | 49 |
Net Decrease (Increase) in Other Investments | 7,304 | (1,140) |
Net Cash Used By Investing Activities | (24,192) | (103,492) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 158,169 | 59,665 |
Net (Decrease) Increase in Short-Term Federal Home Loan Bank Borrowings | (151,000) | 31,000 |
Net Decrease in Short-Term Borrowings | (3,510) | (4,718) |
Finance Lease Payments | (12) | 0 |
Repayments of Federal Home Loan Bank Term Advances | (15,000) | (10,000) |
Purchase of Treasury Stock | (2,041) | (1,414) |
Stock Options Exercised, Net | 1,325 | 1,692 |
Shares Issued Under the Employee Stock Purchase Plan | 250 | 252 |
Shares Issued for Dividend Reinvestment Plans | 904 | 856 |
Cash Dividends Paid | (7,528) | (6,982) |
Net Cash (Used) Provided By Financing Activities | (18,443) | 70,351 |
Net Decrease in Cash and Cash Equivalents | (21,544) | (12,097) |
Cash and Cash Equivalents at Beginning of Period | 84,239 | 72,838 |
Cash and Cash Equivalents at End of Period | 62,695 | 60,741 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 9,990 | 4,530 |
Income Taxes | 5,031 | 5,294 |
Non-cash Investing and Financing Activity: | ||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 1,098 | $ 402 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , December 31, 2018 and June 30, 2018 ; the results of operations for the three-month periods ended June 30, 2019 and 2018 ; the consolidated statements of comprehensive income for the three-month periods ended June 30, 2019 and 2018 ; the changes in stockholders' equity for the three-month and six-month periods ended June 30, 2019 and 2018 ; and the cash flows for the six -month periods ended June 30, 2019 and 2018 . 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, 2018 included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2018 . Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in the first six months of 2019: In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 United States generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard was effective in the first quarter of 2019 and did not have a material impact on its financial position or the results of operations in the current quarter or in future periods. 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. 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 was January 1, 2019 for Arrow, without revising prior comparative periods. The Company adopted this standard as of January 1, 2019 using the effective date method, also known as the modified retrospective method, with the cumulative-effect adjustment recorded at the beginning of the period of adoption. As a result of this adoption, the Company's assets increased $7.9 million and the Company's liabilities increased $8.0 million with no adjustment required to retained earnings and no material impact to the Consolidated Statements of Income. Practical Expedients Elected At Adoption: The package of practical expedients were elected that did not require the Company 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. These practical expedients were applied together. In addition, the Company also elected a practical expedient, which was required to 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. Accounting Policy Elections: The Company also made two accounting policy elections related to the adoption of this standard. The first is a determination not to separate lease and non-lease components and account for the resulting combined component as a single lease component. The second election is to account for short-term leases, those leases with a "lease term" of twelve months or less, like an operating lease under current GAAP. Determination of the Discount Rate to Calculate the Lease Liability: Since the Company was unable to determine the rate implicit in its leases, the secured borrowing rate from the Federal Home Loan Bank of New York as of the January 1, 2019 adoption date was utilized for existing leases for the effective lease term beginning with the effective date of each existing lease. The expected expiration date of each lease was determined on a lease-by-lease basis based on the availability of renewal options in the lease contracts, the amount of leasehold improvements at each location, total branch deposits at each location in addition to the feasibility of growth potential at each location. A similar process is followed to determine the expected lease expiration date for all leases executed subsequent to the January 1, 2019 adoption date. The following accounting standards have been issued and will become effective for the Company at a future date: 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. In April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments," which clarifies that the estimate of expected credit losses should include expected recoveries of financial assets, and that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Company's loan terms for contractual extensions and renewal options are unconditionally cancellable by the Company (that is, the Company has no obligation to extend or renew existing loans), and therefore are not considered in measuring expected credit losses. 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 Company has continued its implementation efforts with the development and testing of various methods within its core model, and has tentatively identified the discounted cash flow method for determining losses for the commercial loan portfolios and the residential real estate portfolios, and the vintage method for the consumer indirect loan portfolio. Based on further testing, these methods may change prior to adoption. As a result of analyses performed, including the availability of future economic data, the Company plans to utilize an 18-month reasonable and supportable forecast period. The Company has identified the economic data that best correlates with expected loan losses through the use of various regression analyses of historical economic information and loan losses. The Company continues to monitor new regulatory guidance and is updating relevant internal controls and processes. The adoption of this standard 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 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. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) The following table is the schedule of Available-For-Sale Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities June 30, 2019 Available-For-Sale Securities, at Amortized Cost $ 17,506 $ 965 $ 266,235 $ 1,000 $ 285,706 Available-For-Sale Securities, at Fair Value 17,524 967 266,587 800 285,878 Gross Unrealized Gains 31 2 1,293 — 1,326 Gross Unrealized Losses 13 — 941 200 1,154 Available-For-Sale Securities, Pledged as Collateral 246,202 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 12,503 $ 226 $ 267 $ — $ 12,996 From 1 - 5 Years 5,003 299 165,852 — 171,154 From 5 - 10 Years — — 75,603 — 75,603 Over 10 Years — 440 24,513 1,000 25,953 Maturities of Debt Securities, at Fair Value: Within One Year $ 12,490 $ 229 $ 268 $ — $ 12,987 From 1 - 5 Years 5,034 298 166,178 — 171,510 From 5 - 10 Years — — 75,538 — 75,538 Over 10 Years — 440 24,603 800 25,843 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 35 $ — $ 24,948 $ — $ 24,983 12 Months or Longer 12,454 — 130,229 800 143,483 Total $ 12,489 $ — $ 155,177 $ 800 $ 168,466 Number of Securities in a Continuous Loss Position 2 — 61 1 64 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 234 $ — $ 234 12 Months or Longer 13 — 707 200 920 Total $ 13 $ — $ 941 $ 200 $ 1,154 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 17,506 US Agency Obligations, 17,524 US Government Agency Securities, at Amortized Cost $ 67,760 US Government Agency Securities, at Fair Value 67,613 Government Sponsored Entity Securities, at Amortized Cost 198,475 Government Sponsored Entity 198,974 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities December 31, 2018 Available-For-Sale Securities, at Amortized Cost $ 47,071 $ 1,193 $ 273,227 $ 1,000 $ 322,491 Available-For-Sale Securities, at Fair Value 46,765 1,195 268,775 800 317,535 Gross Unrealized Gains — 2 288 — 290 Gross Unrealized Losses 306 — 4,740 200 5,246 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 236,163 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 107,550 $ — $ 107,550 12 Months or Longer 46,765 — 124,627 800 172,192 Total $ 46,765 $ — $ 232,177 $ 800 $ 279,742 Number of Securities in a Continuous Loss Position 10 — 86 1 97 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 841 $ — $ 841 12 Months or Longer 306 — 3,899 200 4,405 Total $ 306 $ — $ 4,740 $ 200 $ 5,246 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 47,071 US Agency Obligations, 46,765 US Government Agency Securities, at Amortized Cost $ 72,095 US Government Agency Securities, at Fair Value 71,800 Government Sponsored Entity Securities, at Amortized Cost 201,132 Government Sponsored Entity 196,975 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities June 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,199 $ 3,377 $ 267,113 $ 1,000 $ 331,689 Available-For-Sale Securities, at Fair Value 59,615 3,383 261,589 800 325,387 Gross Unrealized Gains — 6 332 — 338 Gross Unrealized Losses 584 — 5,856 200 6,640 Available-For-Sale Securities, Pledged as Collateral 282,481 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 17,218 $ 1,797 $ 144,265 $ — $ 163,280 12 Months or Longer 42,397 — 72,209 800 115,406 Total $ 59,615 $ 1,797 $ 216,474 $ 800 $ 278,686 Number of Securities in a Continuous Loss Position 14 6 79 1 100 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 297 $ — $ 2,409 $ — $ 2,706 12 Months or Longer 287 — 3,447 200 3,934 Total $ 584 $ — $ 5,856 $ 200 $ 6,640 Disaggregated Details: US Treasury Obligations, $ — US Treasury Obligations, — US Agency Obligations, 60,199 US Agency Obligations, 59,615 US Government Agency Securities, at Amortized Cost $ 68,030 US Government Agency Securities, at Fair Value 68,083 Government Sponsored Entity Securities, at Amortized Cost 199,083 Government Sponsored Entity 193,506 The following table is the schedule of Held-To-Maturity Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities June 30, 2019 Held-To-Maturity Securities, at Amortized Cost $ 220,529 $ 42,012 $ 262,541 Held-To-Maturity Securities, at Fair Value 223,654 42,414 266,068 Gross Unrealized Gains 3,206 415 3,621 Gross Unrealized Losses 81 13 94 Held-To-Maturity Securities, Pledged as Collateral 251,639 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 24,060 $ 1,884 $ 25,944 From 1 - 5 Years 114,782 40,128 154,910 From 5 - 10 Years 80,037 — 80,037 Over 10 Years 1,650 — 1,650 Maturities of Debt Securities, at Fair Value: Within One Year $ 24,109 $ 1,907 $ 26,016 From 1 - 5 Years 116,273 40,507 156,780 From 5 - 10 Years 81,593 — 81,593 Over 10 Years 1,679 — 1,679 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 159 $ (67 ) $ 92 12 Months or Longer 14,374 1,711 16,085 Total $ 14,533 $ 1,644 $ 16,177 Number of Securities in a Continuous Loss Position 36 1 37 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ — 12 Months or Longer 81 13 94 Total $ 81 $ 13 $ 94 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,942 US Government Agency Securities, at Fair Value 1,948 Government Sponsored Entity Securities, at Amortized Cost 40,070 Government Sponsored Entity 40,466 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities December 31, 2018 Held-To-Maturity Securities, at Amortized Cost $ 235,782 $ 47,694 $ 283,476 Held-To-Maturity Securities, at Fair Value 233,359 46,979 280,338 Gross Unrealized Gains 486 — 486 Gross Unrealized Losses 2,909 715 3,624 Held-To-Maturity Securities, Pledged as Collateral 266,341 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 32,093 $ 33,309 $ 65,402 12 Months or Longer 110,947 13,670 124,617 Total $ 143,040 $ 46,979 $ 190,019 Number of Securities in a Continuous Loss Position 411 47 458 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 162 $ 456 $ 618 12 Months or Longer 2,747 259 3,006 Total $ 2,909 $ 715 $ 3,624 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,180 US Government Agency Securities, at Fair Value 2,143 Government Sponsored Entity Securities, at Amortized Cost 45,514 Government Sponsored Entity 44,836 June 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 244,016 $ 53,869 $ 297,885 Held-To-Maturity Securities, at Fair Value 239,841 52,764 292,605 Gross Unrealized Gains 497 — 497 Gross Unrealized Losses 4,672 1,105 5,777 Held-To-Maturity Securities, Pledged as Collateral 278,627 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 68,612 $ 49,977 $ 118,589 12 Months or Longer 90,948 2,787 93,735 Total $ 159,560 $ 52,764 $ 212,324 Number of Securities in a Continuous Loss Position 465 47 512 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 633 $ 1,021 $ 1,654 12 Months or Longer 4,039 84 4,123 Total $ 4,672 $ 1,105 $ 5,777 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities June 30, 2018 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,265 US Government Agency Securities, at Fair Value 2,346 Government Sponsored Entity Securities, at Amortized Cost 50,604 Government Sponsored Entity 50,418 In the tables above, maturities of mortgage-backed securities are included based on their expected average lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties. Securities in a continuous loss position, in the tables above for June 30, 2019 , December 31, 2018 and June 30, 2018 , do not reflect any deterioration of the credit worthiness of the issuing entities. U.S. government agency securities, including mortgage-backed securities, are all rated AAA by Moody's and AA+ by Standard and Poor's. 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. For any non-rated municipal securities, credit analysis is performed in-house based upon data that has been submitted by the issuers to the New York State Comptroller. That analysis shows no deterioration in the credit worthiness of the municipalities. Subsequent to June 30, 2019 , there were no securities downgraded below investment grade. The unrealized losses on these 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 we do not currently intend to sell any of our temporarily impaired securities, and because it is not more likely-than-not we would be required to sell the securities prior to recovery, the impairment is considered temporary. Pledged securities, in the tables above, are primarily used to collateralize state and municipal deposits, as required under New York State law. A small portion of the pledged securities are used to collateralize repurchase agreements and pooled deposits of our trust customers. The following table is the schedule of Equity Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Equity Securities June 30, 2019 December 31, 2018 June 30, 2018 Equity Securities, at Fair Value $1,850 $1,774 $1,802 The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three- and six-month periods ended June 30, 2019 and 2018 : Quarterly Period Ended: Year-to-Date Period Ended: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net Gain on Equity Securities $ — $ 223 $ 76 $ 241 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 $ — $ 223 $ 76 $ 241 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , December 31, 2018 and June 30, 2018 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due. Schedule of Past Due Loans by Loan Category Commercial Commercial Real Estate Consumer Residential Total June 30, 2019 Loans Past Due 30-59 Days $ 119 $ — $ 4,935 $ 1,606 $ 6,660 Loans Past Due 60-89 Days 73 — 948 268 1,289 Loans Past Due 90 or more Days — 328 177 1,337 1,842 Total Loans Past Due 192 328 6,060 3,211 9,791 Current Loans 138,139 489,946 772,964 869,468 2,270,517 Total Loans $ 138,331 $ 490,274 $ 779,024 $ 872,679 $ 2,280,308 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ 220 $ 45 $ 192 $ 457 Nonaccrual Loans 58 248 412 4,231 4,949 December 31, 2018 Loans Past Due 30-59 Days $ 121 $ 108 $ 5,369 $ 281 $ 5,879 Loans Past Due 60-89 Days 49 — 2,136 1,908 4,093 Loans Past Due 90 or more Days — 789 572 1,844 3,205 Total Loans Past Due 170 897 8,077 4,033 13,177 Current Loans 136,720 483,665 711,433 851,220 2,183,038 Total Loans $ 136,890 $ 484,562 $ 719,510 $ 855,253 $ 2,196,215 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 144 $ 1,081 $ 1,225 Nonaccrual Loans 403 789 658 2,309 4,159 June 30, 2018 Loans Past Due 30-59 Days $ 3 $ — $ 4,769 $ 2,004 $ 6,776 Loans Past Due 60-89 Days 15 — 720 273 1,008 Loans Past Due 90 or more Days 28 963 231 771 1,993 Total Loans Past Due 46 963 5,720 3,048 9,777 Current Loans 118,835 463,430 656,188 809,632 2,048,085 Total Loans $ 118,881 $ 464,393 $ 661,908 $ 812,680 $ 2,057,862 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 28 $ 142 $ 170 Nonaccrual Loans 633 963 459 1,825 3,880 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. Generally, these loans carry a higher risk than commercial real estate loans, due primarily 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 to support the borrowing, as permitted by applicable law. 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: March 31, 2019 $ 1,250 $ 5,589 $ 9,409 $ 4,125 $ 20,373 Charge-offs — — (368 ) — (368 ) Recoveries — — 235 — 235 Provision (19 ) (130 ) 378 226 455 June 30, 2019 $ 1,231 $ 5,459 $ 9,654 $ 4,351 $ 20,695 March 31, 2018 $ 1,119 $ 5,412 $ 8,019 $ 4,507 $ 19,057 Charge-offs — — (248 ) (16 ) (264 ) Recoveries — 3 215 — 218 Provision (175 ) 423 351 30 629 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 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, 2018 $ 1,218 $ 5,644 $ 8,882 $ 4,452 $ 20,196 Charge-offs (1 ) (29 ) (786 ) (14 ) (830 ) Recoveries — — 402 — 402 Provision 14 (156 ) 1,156 (87 ) 927 June 30, 2019 $ 1,231 $ 5,459 $ 9,654 $ 4,351 $ 20,695 December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (595 ) (23 ) (634 ) Recoveries — 12 301 — 313 Provision (913 ) 1,322 1,027 (61 ) 1,375 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 June 30, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 5 $ — $ — $ — $ 5 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,226 5,459 9,654 4,351 20,690 Ending Loan Balance - Individually Evaluated for Impairment 37 1 124 2,402 2,564 Ending Loan Balance - Collectively Evaluated for Impairment $ 138,294 $ 490,273 $ 778,900 $ 870,277 $ 2,277,744 December 31, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ 4 $ 4 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,218 5,644 8,882 4,448 20,192 Ending Loan Balance - Individually Evaluated for Impairment 430 793 101 1,899 3,223 Ending Loan Balance - Collectively Evaluated for Impairment $ 136,460 $ 483,769 $ 719,409 $ 853,354 $ 2,192,992 June 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 88 $ 44 $ — $ 53 $ 185 Allowance for loan losses - Loans Collectively Evaluated for Impairment 856 5,794 8,337 4,468 19,455 Ending Loan Balance - Individually Evaluated for Impairment 489 813 110 1,080 2,492 Ending Loan Balance - Collectively Evaluated for Impairment $ 118,392 $ 463,580 $ 661,798 $ 811,600 $ 2,055,370 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. Our 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, our independent internal loan review department performs periodic reviews of the credit quality indicators on individual loans in the commercial loan portfolio. We use a two-step process to determine the provision for loan losses and the amount of the allowance for loan losses. We perform an evaluation of impaired loans on a quarterly basis. Impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. Our 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, we estimate a total loss factor based on the historical net loss rates adjusted for applicable qualitative factors. We update the total loss factors assigned to each loan category on a quarterly basis. For the commercial, commercial construction and commercial real estate categories, we further segregate the loan categories 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. We determine the historical net loss rate 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, we also consider and adjust 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 Loan Credit Quality Indicators The following table presents the credit quality indicators by loan category at June 30, 2019 , December 31, 2018 and June 30, 2018 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total June 30, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 131,886 $ 461,211 $ 593,097 Special Mention 123 2,524 2,647 Substandard 6,322 26,539 32,861 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 778,567 $ 868,256 $ 1,646,823 Nonperforming 457 4,423 4,880 December 31, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 129,584 $ 456,868 $ 586,452 Special Mention — — — Substandard 7,306 26,905 34,211 Doubtful — 789 789 Credit Risk Profile Based on Payment Activity: Performing $ 718,708 $ 851,863 $ 1,570,571 Nonperforming 802 3,390 4,192 June 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 110,911 $ 436,670 $ 547,581 Special Mention 5,948 — 5,948 Substandard 2,023 26,915 28,938 Doubtful — 807 807 Credit Risk Profile Based on Payment Activity: Performing $ 661,449 $ 810,855 $ 1,472,304 Nonperforming 459 1,825 2,284 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 June 30, 2019 Recorded Investment: With No Related Allowance $ — $ 1 $ 124 $ 2,402 $ 2,527 With a Related Allowance 37 — — — 37 Unpaid Principal Balance: With No Related Allowance — 1 124 2,402 2,527 With a Related Allowance 36 — — — 36 December 31, 2018 Recorded Investment: With No Related Allowance $ 430 $ 793 $ 101 $ 1,605 $ 2,929 With a Related Allowance — — — 294 294 Unpaid Principal Balance: With No Related Allowance 429 793 100 1,606 2,928 With a Related Allowance — — — 293 293 June 30, 2018 Recorded Investment: With No Related Allowance $ — $ 7 $ 110 $ 784 $ 901 With a Related Allowance 479 790 — 351 1,620 Unpaid Principal Balance: With No Related Allowance — 7 110 797 $ 914 With a Related Allowance 489 806 — 283 1,578 For the Quarter Ended: June 30, 2019 Average Recorded Balance: With No Related Allowance $ 19 $ 195 $ 113 $ 2,410 $ 2,737 With a Related Allowance 19 — — — 19 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 8 $ 100 $ 1,030 $ 1,138 With a Related Allowance 481 787 — 354 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — At June 30, 2019 , December 31, 2018 and June 30, 2018 , 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: June 30, 2019 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 34 $ — $ 34 Post-Modification Outstanding Recorded Investment — — 34 — 34 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2018 Number of Loans — — 3 — 3 Pre-Modification Outstanding Recorded Investment $ — $ — $ 26 $ — $ 26 Post-Modification Outstanding Recorded Investment — — 26 — 26 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: June 30, 2019 Number of Loans — — 5 — 5 Pre-Modification Outstanding Recorded Investment $ — $ — $ 47 $ — $ 47 Post-Modification Outstanding Recorded Investment — — 47 — 47 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2018 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 28 $ — $ 28 Post-Modification Outstanding Recorded Investment — — 28 — 28 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 June 30, 2019 . |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , December 31, 2018 and June 30, 2018 : Commitments to Extend Credit and Letters of Credit June 30, 2019 December 31, 2018 June 30, 2018 Notional Amount: Commitments to Extend Credit $ 329,337 $ 321,143 $ 324,173 Standby Letters of Credit 4,396 4,466 3,941 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 20 12 11 Arrow is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit include home equity lines of credit, commitments for residential and commercial construction loans and other personal and commercial lines of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement Arrow has in particular classes of financial instruments. Arrow's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. Arrow uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are not expected to be fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Arrow evaluates each customer's creditworthiness on a case-by-case basis. Home equity lines of credit are secured by residential real estate. Construction lines of credit are secured by underlying real estate. For other lines of credit, the amount of collateral obtained, if deemed necessary by Arrow upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Most of the commitments are variable rate instruments. Arrow does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit. Arrow has issued conditional commitments in the form of standby letters of credit to guarantee payment on behalf of a customer and guarantee the performance of a customer to a third party. Standby letters of credit generally arise in connection with commercial lending relationships. The credit risk involved in issuing these instruments is essentially the same as that involved in extending loans to customers. Contingent obligations under standby letters of credit at June 30, 2019 , December 31, 2018 and June 30, 2018 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 will generally range from 50% for movable assets, such as inventory, to 100% for liquid assets, such as bank CD's. Fees for standby letters of credit range from 1% to 3% of the notional amount. Fees are collected upfront and amortized over the life of the commitment. The carrying amount and fair value of Arrow's standby letters of credit at June 30, 2019 , December 31, 2018 and June 30, 2018 , 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 six -month periods ended June 30, 2019 and 2018 : Schedule of Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2019 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 2,340 $ (596 ) 1,744 5,128 $ (1,304 ) 3,824 Amortization of Net Retirement Plan Actuarial Loss 179 (46 ) 133 342 (88 ) 254 Amortization of Net Retirement Plan Prior Service Cost 57 (14 ) 43 113 (28 ) 85 Other Comprehensive Income $ 2,576 $ (656 ) $ 1,920 $ 5,583 $ (1,420 ) $ 4,163 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (853 ) $ 218 (635 ) (4,185 ) $ 1,065 (3,120 ) Amortization of Net Retirement Plan Actuarial Loss 103 (28 ) 75 163 (42 ) 121 Accretion of Net Retirement Plan Prior Service Cost 55 (14 ) 41 54 (14 ) 40 Other Comprehensive Loss $ (695 ) $ 176 $ (519 ) $ (3,968 ) $ 1,009 $ (2,959 ) 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 Net Prior Available-for- Actuarial Service Sale Securities Gain (Loss) (Cost) Credit Total For the Quarter-To-Date periods ended: March 31, 2019 $ (1,617 ) $ (8,850 ) $ (1,100 ) $ (11,567 ) Other comprehensive income before reclassifications 1,744 — — 1,744 Amounts reclassified from accumulated other comprehensive income 133 43 176 Net current-period other comprehensive income 1,744 133 43 1,920 June 30, 2019 $ 127 $ (8,717 ) $ (1,057 ) $ (9,647 ) March 31, 2018 $ (4,066 ) $ (6,334 ) $ (885 ) $ (11,285 ) Other comprehensive loss before reclassifications (635 ) — — (635 ) Amounts reclassified from accumulated other comprehensive loss — 75 41 116 Net current-period other comprehensive income (loss) (635 ) 75 41 (519 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) For the Year-To-Date periods ended: December 31, 2018 $ (3,697 ) $ (8,971 ) $ (1,142 ) $ (13,810 ) Other comprehensive income or loss before reclassifications 3,824 — — 3,824 Amounts reclassified from accumulated other comprehensive income — 254 85 339 Net current-period other comprehensive income 3,824 254 85 4,163 June 30, 2019 $ 127 $ (8,717 ) $ (1,057 ) $ (9,647 ) December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (3,120 ) — — (3,120 ) Amounts reclassified from accumulated other comprehensive income — 121 40 161 Net current-period other comprehensive income (3,120 ) 121 40 (2,959 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) (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: June 30, 2019 Amortization of defined benefit pension items: Prior-service costs $ (57 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (1) Salaries and Employee Benefits (236 ) Total before Tax 60 Provision for Income Taxes $ (176 ) Net of Tax Total reclassifications for the period $ (176 ) Net of Tax June 30, 2018 Amortization of defined benefit pension items: Prior-service costs $ (55 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (103 ) (1) Salaries and Employee Benefits (158 ) Total before Tax 42 Provision for Income Taxes $ (116 ) Net of Tax Total reclassifications for the period $ (116 ) Net of Tax For the Year-to-date periods ended: June 30, 2019 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 $ (113 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (342 ) (1) Salaries and Employee Benefits (455 ) Total before Tax 116 Provision for Income Taxes $ (339 ) Net of Tax Total reclassifications for the period $ (339 ) 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 June 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 (54 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) $ (163 ) (1) Salaries and Employee Benefits (217 ) Total before Tax 56 Provision for Income Taxes $ (161 ) Net of Tax Total reclassifications for the period $ (161 ) 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 | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION (Dollars In Thousands, Except Share and Per Share Amounts) Arrow has established three stock-based compensation plans: a Long Term Incentive Plan,, an Employee Stock Purchase Plan (ESPP) and an Employee Stock Ownership Plan (ESOP). All share and per share data have been adjusted for the September 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 summarizes information about stock option activity for the year to date period ended June 30, 2019 . Shares Weighted Average Exercise Price Outstanding at January 1, 2019 284,522 $ 25.67 Granted 52,000 31.71 Exercised (62,712 ) 21.12 Forfeited (11,726 ) 26.98 Outstanding at June 30, 2019 262,084 27.90 Vested at Period-End 145,120 24.89 Expected to Vest 116,964 31.64 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 5.75 Fair Value Assumptions: Dividend Yield 3.26 % Expected Volatility 22.58 % Risk Free Interest Rate 2.63 % Expected Lives (in years) 8.68 The following table presents information on the amounts expensed related to stock options for the periods ended June 30, 2019 and 2018 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount expensed $ 79 $ 80 $ 158 $ 163 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. Vested units settle upon retirement of the recipient. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions. The following table summarizes information about restricted stock unit activity for the period ended June 30, 2019 . Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2019 3,377 $ 32.57 Granted 3,901 31.71 Non-vested at June 30, 2019 7,278 32.11 The following table presents information on the amounts expensed related to restricted stock units for the periods ended June 30, 2019 and 2018 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount expensed $ 20 $ 9 $ 36 $ 15 Employee Stock Purchase Plan Arrow sponsors an ESPP under which employees may 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 employee stock ownership plan ("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 2019. 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 Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Retirement Benefit Plans | RETIREMENT BENEFIT PLANS (Dollars in Thousands) Arrow sponsors qualified and non-qualified defined benefit pension plans and other postretirement benefit plans for its employees. Arrow maintains a non-contributory pension plan, which covers substantially all employees. Effective December 1, 2002, all active participants in the qualified defined benefit pension plan were given a one-time irrevocable election to continue participating in the traditional plan design, for which benefits were based on years of service and the participant’s final compensation (as defined), or to begin participating in the new cash balance plan design. All employees who 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, 2018, Arrow updated its mortality assumption to the RP-2014 Mortality Table for annuitants and non-annuitants with projected generational mortality improvements using Scale MP-2018 for the pension plans and the RPH-2014 Mortality Table for annuitants and non-annuitants with projected generational mortality improvements using Scale MP-2018 for the retiree health plan. The revised assumptions resulted in a decrease in postretirement liabilities. As of December 31, 2018, Arrow also updated its mortality assumption for annuity/lump sum conversions for the pension plans to the 2019 IRC Section 417(e)(3)B) applicable mortality table. The revised assumption results in an increase in postretirement liabilities for the pension plans. T he interest rates used in determining the present value of a lump sum payment/annuitizing cash balance accounts were changed to the segment rates in effect for the January 1, 2019 plan year ( 3.43% , 4.46% , 4.88% ) as of December 31, 2018. This change was made to more accurately reflect current expected long-term interest rates and resulted in an increase in liability for the Arrow Financial Corporation Employees' Pension Plan and Trust and the Arrow Financial Corporation Select Executive Retirement Plan. The following tables provide the components of net periodic benefit costs for the three- and six -month periods ended June 30, 2019 and 2018 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended June 30, 2019: Service Cost 1 $ 365 $ 65 $ 31 Interest Cost 2 343 56 93 Expected Return on Plan Assets 2 (761 ) — — Amortization of Prior Service Cost 2 18 13 26 Amortization of Net Loss 2 154 30 (5 ) Net Periodic Cost $ 119 $ 164 $ 145 Plan Contributions During the Period $ — $ 117 $ 54 For the Three Months Ended June 30, 2018: Service Cost 1 $ 431 $ 196 $ 35 Interest Cost 2 274 54 68 Expected Return on Plan Assets 2 (896 ) — — Amortization of Prior Service (Credit) Cost 2 (13 ) 15 53 Amortization of Net Loss 2 64 33 6 Net Periodic (Benefit) Cost $ (140 ) $ 298 $ 162 Plan Contributions During the Period $ — $ 117 $ 102 Net Periodic Benefit Cost For the Six Months Ended June 30, 2019: Service Cost 1 $ 764 $ 162 $ 61 Interest Cost 2 740 108 182 Expected Return on Plan Assets 2 (1,531 ) — — Amortization of Prior Service (Credit) Cost 2 35 27 51 Amortization of Net Loss 2 307 57 (22 ) Net Periodic (Benefit) Cost $ 315 $ 354 $ 272 Plan Contributions During the Period $ — $ 233 $ 91 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Six Months Ended June 30, 2018: Service Cost 1 $ 779 $ 207 $ 68 Interest Cost 2 799 104 167 Expected Return on Plan Assets 2 (1,681 ) — — Amortization of Prior Service (Credit) Cost 2 (25 ) 29 50 Amortization of Net Loss 2 97 66 — Net Periodic (Benefit) Cost $ (31 ) $ 406 $ 285 Plan Contributions During the Period $ — $ 233 $ 119 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 2019 , and currently, we do not expect to make additional contributions in 2019 . 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 . 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: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Earnings Per Share - Basic: Net Income $ 8,934 $ 9,730 $ 17,668 $ 18,261 Weighted Average Shares - Basic 14,487 14,394 14,478 14,374 Earnings Per Share - Basic $ 0.62 $ 0.68 $ 1.22 $ 1.27 Earnings Per Share - Diluted: Net Income $ 8,934 $ 9,730 $ 17,668 $ 18,261 Weighted Average Shares - Basic 14,487 14,394 14,478 14,374 Dilutive Average Shares Attributable to Stock Options 40 86 45 85 Weighted Average Shares - Diluted 14,527 14,480 14,523 14,459 Earnings Per Share - Diluted $ 0.62 $ 0.67 $ 1.22 $ 1.26 |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES (Dollars 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 June 30, 2019 , December 31, 2018 and June 30, 2018 were securities available-for-sale and equity securities . 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) Fair Value of Assets and Liabilities Measured on a Recurring Basis: June 30, 2019 Securities Available-for Sale: U.S. Government & Agency Obligations $ 17,524 $ — $ 17,524 $ — State and Municipal Obligations 967 — 967 — Mortgage-Backed Securities 266,587 — 266,587 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 285,878 — 285,878 — Equity Securities 1,850 — 1,850 — Total Securities Measured on a Recurring Basis $ 287,728 $ — $ 287,728 $ — December 31, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 46,765 $ — $ 46,765 $ — State and Municipal Obligations 1,195 — 1,195 — Mortgage-Backed Securities 268,775 — 268,775 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 317,535 317,535 Equity Securities 1,774 — 1,774 — Total Securities Measured on a Recurring Basis $ 319,309 $ — $ 319,309 $ — June 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,615 $ — $ 59,615 $ — State and Municipal Obligations 3,383 — 3,383 — Mortgage-Backed Securities 261,589 — 261,589 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 325,387 325,387 Equity Securities 1,802 — 1,802 — Total Securities Measured on a Recurring Basis $ 327,189 $ — $ 327,189 $ — Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Gains (Losses) Recognized in Earnings Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: June 30, 2019 Collateral Dependent Impaired Loans $ 37 $ — $ — $ 37 Other Real Estate Owned and Repossessed Assets, Net 1,373 — — 1,373 (164 ) December 31, 2018 Collateral Dependent Impaired Loans $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net 1,260 — — 1,260 (132 ) June 30, 2018 Collateral Dependent Impaired Loans $ 747 $ — $ — $ 747 Other Real Estate Owned and Repossessed Assets, Net 1,487 — — 1,487 (85 ) 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 $59.6 million were incorrectly classified as Level 1 securities, instead of the correct classification as Level 2 securities. The Company corrected the fair value leveling disclosure to reflect the correction of this classification in the quarter ended June 30, 2018. 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 June 30, 2019 , December 31, 2018 and June 30, 2018 . 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 June 30, 2019 , December 31, 2018 and June 30, 2018 . Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis The fair value for securities held-to-maturity is determined utilizing an independent bond pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" requires that the fair value for loans must be disclosed using the "exit price" notion which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for loans are calculated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect auto and other consumer loans. Each loan category is further segmented into fixed and adjustable interest rate terms and by performing and nonperforming categories. The fair value of performing loans is calculated by determining the estimated future cash flow, which is the contractual cash flow adjusted for estimated prepayments. The discount rate is determined by starting with current market yields, and first adjusting for a liquidity premium. This premium is separately determined for 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 Carrying Value Fair Value Level 1 Level 2 Level 3 June 30, 2019 Cash and Cash Equivalents $ 62,695 $ 62,695 $ 62,695 $ — $ — Securities Available-for-Sale 285,878 285,878 — 285,878 — Securities Held-to-Maturity 262,541 266,068 — 266,068 — Equity Securities 1,850 1,850 — 1,850 — Federal Home Loan Bank and Federal Reserve Bank Stock 8,202 8,202 — 8,202 — Net Loans 2,259,613 2,218,244 — — 2,218,244 Accrued Interest Receivable 7,491 7,491 — 7,491 — Deposits 2,503,753 2,499,849 — 2,499,849 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 51,149 51,149 — 51,149 — Federal Home Loan Bank Overnight Advances 83,000 83,000 — 83,000 — Federal Home Loan Bank Term Advances 30,000 29,943 — 29,943 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,187 1,187 — 1,187 — December 31, 2018 Cash and Cash Equivalents $ 84,239 $ 84,239 $ 84,239 $ — $ — Securities Available-for-Sale 317,535 317,535 — 317,535 — Securities Held-to-Maturity 283,476 280,338 — 280,338 — Equity Securities 1,774 1,774 1,774 Federal Home Loan Bank and Federal Reserve Bank Stock 15,506 15,506 — 15,506 — Net Loans 2,176,019 2,114,372 — — 2,114,372 Accrued Interest Receivable 7,035 7,035 — 7,035 — Deposits 2,345,584 2,338,410 — 2,338,410 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 54,659 54,659 — 54,659 — Federal Home Loan Bank Overnight Advances 234,000 234,000 — 234,000 — Federal Home Loan Bank Term Advances 45,000 44,652 — 44,652 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 570 570 — 570 — June 30, 2018 Cash and Cash Equivalents $ 60,741 $ 60,741 $ 60,741 $ — $ — Securities Available-for-Sale 325,387 325,387 — 325,387 — Securities Held-to-Maturity 297,885 292,605 — 292,605 — Equity Securities 1,802 1,802 — 1,802 Federal Home Loan Bank and Federal Reserve Bank Stock 11,089 11,089 — 11,089 — Net Loans 2,038,222 1,971,756 — — 1,971,756 Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Accrued Interest Receivable 6,729 6,729 — 6,729 — Deposits 2,304,781 2,295,796 — 2,295,796 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 60,248 60,248 — 60,248 — Federal Home Loan Bank Overnight Advances 136,000 136,000 — 136,000 — Federal Home Loan Bank Term Advances 45,000 44,495 — 44,495 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 540 540 — 540 — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES (Dollars In Thousands) The Company is a lessee in its leases, which are mainly for financial services locations in addition to leases for corporate vehicles. These leases generally require the Company to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, the Company pays the variable payments to the lessor, and in other leases, the Company pays the variable payments directly to the applicable third party. None of the Company's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of the Company for leases that have not commenced as of the reporting date. Arrow leases five of its branch offices, at market rates, from Stewart’s Shops Corp. Mr. Gary C. Dake, President of Stewart’s Shops Corp., serves on both the boards of Arrow and Saratoga National Bank and Trust Company. The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2019 : Finance Lease Amounts: Classification Right-of-use Assets Premises and Equipment, Net $ 5,226 Lease Liabilities Finance Leases 5,270 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,859 Lease Liabilities Other Liabilities 5,918 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 Interest on Lease Liabilities 43 Operating Lease Cost 366 Short-term Lease Cost 56 Variable Lease Cost 95 Total Lease Cost $ 604 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 43 Operating Outgoing Cash Flows From Operating Leases 355 Financing Outgoing Cash Flows From Finance Leases 12 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities 5,271 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities 6,147 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 31.29 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 14.07 Weighted-average Discount Rate—Finance Leases % 3.75 % Weighted-average Discount Rate—Operating Leases % 3.47 % Future Lease Payments at June 30, 2019 are as follows: Operating Leases Financing Leases Twelve Months Ended: 6/30/2020 $ 811 $ 186 6/30/2021 735 233 6/30/2022 604 242 6/30/2023 529 243 6/30/2024 530 244 Thereafter 4,373 8,323 Total Undiscounted Cash Flows $ 7,582 $ 9,471 Less: Net Present Value Adjustment 1,664 4,201 Lease Liability $ 5,918 $ 5,270 Arrow adopted ASU 2016-02 using a modified retrospective adoption at January 1, 2019 as discussed in Note 1. The following disclosure is provided for the period prior to the adoption. Future minimum lease payments on operating leases at December 31, 2018 were as follows: Operating Leases 2019 $ 857 2020 626 2021 497 2022 357 2023 286 2024 and beyond 2,776 Total Minimum Lease Payments $ 5,399 |
Leases | LEASES (Dollars In Thousands) The Company is a lessee in its leases, which are mainly for financial services locations in addition to leases for corporate vehicles. These leases generally require the Company to pay third-party expenses on behalf of the Lessor, which are referred to as variable payments. Under some leases, the Company pays the variable payments to the lessor, and in other leases, the Company pays the variable payments directly to the applicable third party. None of the Company's current leases include any residual value guarantees or any subleases, and there are no significant rights and obligations of the Company for leases that have not commenced as of the reporting date. Arrow leases five of its branch offices, at market rates, from Stewart’s Shops Corp. Mr. Gary C. Dake, President of Stewart’s Shops Corp., serves on both the boards of Arrow and Saratoga National Bank and Trust Company. The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2019 : Finance Lease Amounts: Classification Right-of-use Assets Premises and Equipment, Net $ 5,226 Lease Liabilities Finance Leases 5,270 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,859 Lease Liabilities Other Liabilities 5,918 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 Interest on Lease Liabilities 43 Operating Lease Cost 366 Short-term Lease Cost 56 Variable Lease Cost 95 Total Lease Cost $ 604 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 43 Operating Outgoing Cash Flows From Operating Leases 355 Financing Outgoing Cash Flows From Finance Leases 12 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities 5,271 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities 6,147 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 31.29 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 14.07 Weighted-average Discount Rate—Finance Leases % 3.75 % Weighted-average Discount Rate—Operating Leases % 3.47 % Future Lease Payments at June 30, 2019 are as follows: Operating Leases Financing Leases Twelve Months Ended: 6/30/2020 $ 811 $ 186 6/30/2021 735 233 6/30/2022 604 242 6/30/2023 529 243 6/30/2024 530 244 Thereafter 4,373 8,323 Total Undiscounted Cash Flows $ 7,582 $ 9,471 Less: Net Present Value Adjustment 1,664 4,201 Lease Liability $ 5,918 $ 5,270 Arrow adopted ASU 2016-02 using a modified retrospective adoption at January 1, 2019 as discussed in Note 1. The following disclosure is provided for the period prior to the adoption. Future minimum lease payments on operating leases at December 31, 2018 were as follows: Operating Leases 2019 $ 857 2020 626 2021 497 2022 357 2023 286 2024 and beyond 2,776 Total Minimum Lease Payments $ 5,399 |
Accounting Policies Significant
Accounting Policies Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 six months of 2019: In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 United States generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard was effective in the first quarter of 2019 and did not have a material impact on its financial position or the results of operations in the current quarter or in future periods. 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. 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 was January 1, 2019 for Arrow, without revising prior comparative periods. The Company adopted this standard as of January 1, 2019 using the effective date method, also known as the modified retrospective method, with the cumulative-effect adjustment recorded at the beginning of the period of adoption. As a result of this adoption, the Company's assets increased $7.9 million and the Company's liabilities increased $8.0 million with no adjustment required to retained earnings and no material impact to the Consolidated Statements of Income. Practical Expedients Elected At Adoption: The package of practical expedients were elected that did not require the Company 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. These practical expedients were applied together. In addition, the Company also elected a practical expedient, which was required to 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. Accounting Policy Elections: The Company also made two accounting policy elections related to the adoption of this standard. The first is a determination not to separate lease and non-lease components and account for the resulting combined component as a single lease component. The second election is to account for short-term leases, those leases with a "lease term" of twelve months or less, like an operating lease under current GAAP. Determination of the Discount Rate to Calculate the Lease Liability: Since the Company was unable to determine the rate implicit in its leases, the secured borrowing rate from the Federal Home Loan Bank of New York as of the January 1, 2019 adoption date was utilized for existing leases for the effective lease term beginning with the effective date of each existing lease. The expected expiration date of each lease was determined on a lease-by-lease basis based on the availability of renewal options in the lease contracts, the amount of leasehold improvements at each location, total branch deposits at each location in addition to the feasibility of growth potential at each location. A similar process is followed to determine the expected lease expiration date for all leases executed subsequent to the January 1, 2019 adoption date. The following accounting standards have been issued and will become effective for the Company at a future date: 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. In April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments," which clarifies that the estimate of expected credit losses should include expected recoveries of financial assets, and that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Company's loan terms for contractual extensions and renewal options are unconditionally cancellable by the Company (that is, the Company has no obligation to extend or renew existing loans), and therefore are not considered in measuring expected credit losses. 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 Company has continued its implementation efforts with the development and testing of various methods within its core model, and has tentatively identified the discounted cash flow method for determining losses for the commercial loan portfolios and the residential real estate portfolios, and the vintage method for the consumer indirect loan portfolio. Based on further testing, these methods may change prior to adoption. As a result of analyses performed, including the availability of future economic data, the Company plans to utilize an 18-month reasonable and supportable forecast period. The Company has identified the economic data that best correlates with expected loan losses through the use of various regression analyses of historical economic information and loan losses. The Company continues to monitor new regulatory guidance and is updating relevant internal controls and processes. The adoption of this standard 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 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-For-Sale | The following table is the schedule of Available-For-Sale Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities June 30, 2019 Available-For-Sale Securities, at Amortized Cost $ 17,506 $ 965 $ 266,235 $ 1,000 $ 285,706 Available-For-Sale Securities, at Fair Value 17,524 967 266,587 800 285,878 Gross Unrealized Gains 31 2 1,293 — 1,326 Gross Unrealized Losses 13 — 941 200 1,154 Available-For-Sale Securities, Pledged as Collateral 246,202 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 12,503 $ 226 $ 267 $ — $ 12,996 From 1 - 5 Years 5,003 299 165,852 — 171,154 From 5 - 10 Years — — 75,603 — 75,603 Over 10 Years — 440 24,513 1,000 25,953 Maturities of Debt Securities, at Fair Value: Within One Year $ 12,490 $ 229 $ 268 $ — $ 12,987 From 1 - 5 Years 5,034 298 166,178 — 171,510 From 5 - 10 Years — — 75,538 — 75,538 Over 10 Years — 440 24,603 800 25,843 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 35 $ — $ 24,948 $ — $ 24,983 12 Months or Longer 12,454 — 130,229 800 143,483 Total $ 12,489 $ — $ 155,177 $ 800 $ 168,466 Number of Securities in a Continuous Loss Position 2 — 61 1 64 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 234 $ — $ 234 12 Months or Longer 13 — 707 200 920 Total $ 13 $ — $ 941 $ 200 $ 1,154 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 17,506 US Agency Obligations, 17,524 US Government Agency Securities, at Amortized Cost $ 67,760 US Government Agency Securities, at Fair Value 67,613 Government Sponsored Entity Securities, at Amortized Cost 198,475 Government Sponsored Entity 198,974 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities December 31, 2018 Available-For-Sale Securities, at Amortized Cost $ 47,071 $ 1,193 $ 273,227 $ 1,000 $ 322,491 Available-For-Sale Securities, at Fair Value 46,765 1,195 268,775 800 317,535 Gross Unrealized Gains — 2 288 — 290 Gross Unrealized Losses 306 — 4,740 200 5,246 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 236,163 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 107,550 $ — $ 107,550 12 Months or Longer 46,765 — 124,627 800 172,192 Total $ 46,765 $ — $ 232,177 $ 800 $ 279,742 Number of Securities in a Continuous Loss Position 10 — 86 1 97 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 841 $ — $ 841 12 Months or Longer 306 — 3,899 200 4,405 Total $ 306 $ — $ 4,740 $ 200 $ 5,246 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ — US Treasury Obligations, — US Agency Obligations, 47,071 US Agency Obligations, 46,765 US Government Agency Securities, at Amortized Cost $ 72,095 US Government Agency Securities, at Fair Value 71,800 Government Sponsored Entity Securities, at Amortized Cost 201,132 Government Sponsored Entity 196,975 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities Corporate and Other Debt Securities Total Available- For-Sale Securities June 30, 2018 Available-For-Sale Securities, at Amortized Cost $ 60,199 $ 3,377 $ 267,113 $ 1,000 $ 331,689 Available-For-Sale Securities, at Fair Value 59,615 3,383 261,589 800 325,387 Gross Unrealized Gains — 6 332 — 338 Gross Unrealized Losses 584 — 5,856 200 6,640 Available-For-Sale Securities, Pledged as Collateral 282,481 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 17,218 $ 1,797 $ 144,265 $ — $ 163,280 12 Months or Longer 42,397 — 72,209 800 115,406 Total $ 59,615 $ 1,797 $ 216,474 $ 800 $ 278,686 Number of Securities in a Continuous Loss Position 14 6 79 1 100 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 297 $ — $ 2,409 $ — $ 2,706 12 Months or Longer 287 — 3,447 200 3,934 Total $ 584 $ — $ 5,856 $ 200 $ 6,640 Disaggregated Details: US Treasury Obligations, $ — US Treasury Obligations, — US Agency Obligations, 60,199 US Agency Obligations, 59,615 US Government Agency Securities, at Amortized Cost $ 68,030 US Government Agency Securities, at Fair Value 68,083 Government Sponsored Entity Securities, at Amortized Cost 199,083 Government Sponsored Entity 193,506 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities June 30, 2019 Held-To-Maturity Securities, at Amortized Cost $ 220,529 $ 42,012 $ 262,541 Held-To-Maturity Securities, at Fair Value 223,654 42,414 266,068 Gross Unrealized Gains 3,206 415 3,621 Gross Unrealized Losses 81 13 94 Held-To-Maturity Securities, Pledged as Collateral 251,639 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 24,060 $ 1,884 $ 25,944 From 1 - 5 Years 114,782 40,128 154,910 From 5 - 10 Years 80,037 — 80,037 Over 10 Years 1,650 — 1,650 Maturities of Debt Securities, at Fair Value: Within One Year $ 24,109 $ 1,907 $ 26,016 From 1 - 5 Years 116,273 40,507 156,780 From 5 - 10 Years 81,593 — 81,593 Over 10 Years 1,679 — 1,679 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 159 $ (67 ) $ 92 12 Months or Longer 14,374 1,711 16,085 Total $ 14,533 $ 1,644 $ 16,177 Number of Securities in a Continuous Loss Position 36 1 37 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ — 12 Months or Longer 81 13 94 Total $ 81 $ 13 $ 94 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,942 US Government Agency Securities, at Fair Value 1,948 Government Sponsored Entity Securities, at Amortized Cost 40,070 Government Sponsored Entity 40,466 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities December 31, 2018 Held-To-Maturity Securities, at Amortized Cost $ 235,782 $ 47,694 $ 283,476 Held-To-Maturity Securities, at Fair Value 233,359 46,979 280,338 Gross Unrealized Gains 486 — 486 Gross Unrealized Losses 2,909 715 3,624 Held-To-Maturity Securities, Pledged as Collateral 266,341 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 32,093 $ 33,309 $ 65,402 12 Months or Longer 110,947 13,670 124,617 Total $ 143,040 $ 46,979 $ 190,019 Number of Securities in a Continuous Loss Position 411 47 458 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 162 $ 456 $ 618 12 Months or Longer 2,747 259 3,006 Total $ 2,909 $ 715 $ 3,624 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,180 US Government Agency Securities, at Fair Value 2,143 Government Sponsored Entity Securities, at Amortized Cost 45,514 Government Sponsored Entity 44,836 June 30, 2018 Held-To-Maturity Securities, at Amortized Cost $ 244,016 $ 53,869 $ 297,885 Held-To-Maturity Securities, at Fair Value 239,841 52,764 292,605 Gross Unrealized Gains 497 — 497 Gross Unrealized Losses 4,672 1,105 5,777 Held-To-Maturity Securities, Pledged as Collateral 278,627 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 68,612 $ 49,977 $ 118,589 12 Months or Longer 90,948 2,787 93,735 Total $ 159,560 $ 52,764 $ 212,324 Number of Securities in a Continuous Loss Position 465 47 512 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 633 $ 1,021 $ 1,654 12 Months or Longer 4,039 84 4,123 Total $ 4,672 $ 1,105 $ 5,777 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities June 30, 2018 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,265 US Government Agency Securities, at Fair Value 2,346 Government Sponsored Entity Securities, at Amortized Cost 50,604 Government Sponsored Entity 50,418 |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is the schedule of Equity Securities at June 30, 2019 , December 31, 2018 and June 30, 2018 : Equity Securities June 30, 2019 December 31, 2018 June 30, 2018 Equity Securities, at Fair Value $1,850 $1,774 $1,802 |
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 six-month periods ended June 30, 2019 and 2018 : Quarterly Period Ended: Year-to-Date Period Ended: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net Gain on Equity Securities $ — $ 223 $ 76 $ 241 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 $ — $ 223 $ 76 $ 241 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Past Due Financing Receivables | The following table presents loan balances outstanding as of June 30, 2019 , December 31, 2018 and June 30, 2018 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due. Schedule of Past Due Loans by Loan Category Commercial Commercial Real Estate Consumer Residential Total June 30, 2019 Loans Past Due 30-59 Days $ 119 $ — $ 4,935 $ 1,606 $ 6,660 Loans Past Due 60-89 Days 73 — 948 268 1,289 Loans Past Due 90 or more Days — 328 177 1,337 1,842 Total Loans Past Due 192 328 6,060 3,211 9,791 Current Loans 138,139 489,946 772,964 869,468 2,270,517 Total Loans $ 138,331 $ 490,274 $ 779,024 $ 872,679 $ 2,280,308 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ 220 $ 45 $ 192 $ 457 Nonaccrual Loans 58 248 412 4,231 4,949 December 31, 2018 Loans Past Due 30-59 Days $ 121 $ 108 $ 5,369 $ 281 $ 5,879 Loans Past Due 60-89 Days 49 — 2,136 1,908 4,093 Loans Past Due 90 or more Days — 789 572 1,844 3,205 Total Loans Past Due 170 897 8,077 4,033 13,177 Current Loans 136,720 483,665 711,433 851,220 2,183,038 Total Loans $ 136,890 $ 484,562 $ 719,510 $ 855,253 $ 2,196,215 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 144 $ 1,081 $ 1,225 Nonaccrual Loans 403 789 658 2,309 4,159 June 30, 2018 Loans Past Due 30-59 Days $ 3 $ — $ 4,769 $ 2,004 $ 6,776 Loans Past Due 60-89 Days 15 — 720 273 1,008 Loans Past Due 90 or more Days 28 963 231 771 1,993 Total Loans Past Due 46 963 5,720 3,048 9,777 Current Loans 118,835 463,430 656,188 809,632 2,048,085 Total Loans $ 118,881 $ 464,393 $ 661,908 $ 812,680 $ 2,057,862 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 28 $ 142 $ 170 Nonaccrual Loans 633 963 459 1,825 3,880 |
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: March 31, 2019 $ 1,250 $ 5,589 $ 9,409 $ 4,125 $ 20,373 Charge-offs — — (368 ) — (368 ) Recoveries — — 235 — 235 Provision (19 ) (130 ) 378 226 455 June 30, 2019 $ 1,231 $ 5,459 $ 9,654 $ 4,351 $ 20,695 March 31, 2018 $ 1,119 $ 5,412 $ 8,019 $ 4,507 $ 19,057 Charge-offs — — (248 ) (16 ) (264 ) Recoveries — 3 215 — 218 Provision (175 ) 423 351 30 629 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 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, 2018 $ 1,218 $ 5,644 $ 8,882 $ 4,452 $ 20,196 Charge-offs (1 ) (29 ) (786 ) (14 ) (830 ) Recoveries — — 402 — 402 Provision 14 (156 ) 1,156 (87 ) 927 June 30, 2019 $ 1,231 $ 5,459 $ 9,654 $ 4,351 $ 20,695 December 31, 2017 $ 1,873 $ 4,504 $ 7,604 $ 4,605 $ 18,586 Charge-offs (16 ) — (595 ) (23 ) (634 ) Recoveries — 12 301 — 313 Provision (913 ) 1,322 1,027 (61 ) 1,375 June 30, 2018 $ 944 $ 5,838 $ 8,337 $ 4,521 $ 19,640 June 30, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 5 $ — $ — $ — $ 5 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,226 5,459 9,654 4,351 20,690 Ending Loan Balance - Individually Evaluated for Impairment 37 1 124 2,402 2,564 Ending Loan Balance - Collectively Evaluated for Impairment $ 138,294 $ 490,273 $ 778,900 $ 870,277 $ 2,277,744 December 31, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ 4 $ 4 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,218 5,644 8,882 4,448 20,192 Ending Loan Balance - Individually Evaluated for Impairment 430 793 101 1,899 3,223 Ending Loan Balance - Collectively Evaluated for Impairment $ 136,460 $ 483,769 $ 719,409 $ 853,354 $ 2,192,992 June 30, 2018 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 88 $ 44 $ — $ 53 $ 185 Allowance for loan losses - Loans Collectively Evaluated for Impairment 856 5,794 8,337 4,468 19,455 Ending Loan Balance - Individually Evaluated for Impairment 489 813 110 1,080 2,492 Ending Loan Balance - Collectively Evaluated for Impairment $ 118,392 $ 463,580 $ 661,798 $ 811,600 $ 2,055,370 |
Financing Receivable Credit Quality Indicators | The following table presents the credit quality indicators by loan category at June 30, 2019 , December 31, 2018 and June 30, 2018 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total June 30, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 131,886 $ 461,211 $ 593,097 Special Mention 123 2,524 2,647 Substandard 6,322 26,539 32,861 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 778,567 $ 868,256 $ 1,646,823 Nonperforming 457 4,423 4,880 December 31, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 129,584 $ 456,868 $ 586,452 Special Mention — — — Substandard 7,306 26,905 34,211 Doubtful — 789 789 Credit Risk Profile Based on Payment Activity: Performing $ 718,708 $ 851,863 $ 1,570,571 Nonperforming 802 3,390 4,192 June 30, 2018 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 110,911 $ 436,670 $ 547,581 Special Mention 5,948 — 5,948 Substandard 2,023 26,915 28,938 Doubtful — 807 807 Credit Risk Profile Based on Payment Activity: Performing $ 661,449 $ 810,855 $ 1,472,304 Nonperforming 459 1,825 2,284 |
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 June 30, 2019 Recorded Investment: With No Related Allowance $ — $ 1 $ 124 $ 2,402 $ 2,527 With a Related Allowance 37 — — — 37 Unpaid Principal Balance: With No Related Allowance — 1 124 2,402 2,527 With a Related Allowance 36 — — — 36 December 31, 2018 Recorded Investment: With No Related Allowance $ 430 $ 793 $ 101 $ 1,605 $ 2,929 With a Related Allowance — — — 294 294 Unpaid Principal Balance: With No Related Allowance 429 793 100 1,606 2,928 With a Related Allowance — — — 293 293 June 30, 2018 Recorded Investment: With No Related Allowance $ — $ 7 $ 110 $ 784 $ 901 With a Related Allowance 479 790 — 351 1,620 Unpaid Principal Balance: With No Related Allowance — 7 110 797 $ 914 With a Related Allowance 489 806 — 283 1,578 For the Quarter Ended: June 30, 2019 Average Recorded Balance: With No Related Allowance $ 19 $ 195 $ 113 $ 2,410 $ 2,737 With a Related Allowance 19 — — — 19 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — June 30, 2018 Average Recorded Balance: With No Related Allowance $ — $ 8 $ 100 $ 1,030 $ 1,138 With a Related Allowance 481 787 — 354 1,622 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — 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: June 30, 2019 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 34 $ — $ 34 Post-Modification Outstanding Recorded Investment — — 34 — 34 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2018 Number of Loans — — 3 — 3 Pre-Modification Outstanding Recorded Investment $ — $ — $ 26 $ — $ 26 Post-Modification Outstanding Recorded Investment — — 26 — 26 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: June 30, 2019 Number of Loans — — 5 — 5 Pre-Modification Outstanding Recorded Investment $ — $ — $ 47 $ — $ 47 Post-Modification Outstanding Recorded Investment — — 47 — 47 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — June 30, 2018 Number of Loans — — 4 — 4 Pre-Modification Outstanding Recorded Investment $ — $ — $ 28 $ — $ 28 Post-Modification Outstanding Recorded Investment — — 28 — 28 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , December 31, 2018 and June 30, 2018 : Commitments to Extend Credit and Letters of Credit June 30, 2019 December 31, 2018 June 30, 2018 Notional Amount: Commitments to Extend Credit $ 329,337 $ 321,143 $ 324,173 Standby Letters of Credit 4,396 4,466 3,941 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 20 12 11 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six -month periods ended June 30, 2019 and 2018 : Schedule of Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2019 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 2,340 $ (596 ) 1,744 5,128 $ (1,304 ) 3,824 Amortization of Net Retirement Plan Actuarial Loss 179 (46 ) 133 342 (88 ) 254 Amortization of Net Retirement Plan Prior Service Cost 57 (14 ) 43 113 (28 ) 85 Other Comprehensive Income $ 2,576 $ (656 ) $ 1,920 $ 5,583 $ (1,420 ) $ 4,163 2018 Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period (853 ) $ 218 (635 ) (4,185 ) $ 1,065 (3,120 ) Amortization of Net Retirement Plan Actuarial Loss 103 (28 ) 75 163 (42 ) 121 Accretion of Net Retirement Plan Prior Service Cost 55 (14 ) 41 54 (14 ) 40 Other Comprehensive Loss $ (695 ) $ 176 $ (519 ) $ (3,968 ) $ 1,009 $ (2,959 ) |
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 Net Prior Available-for- Actuarial Service Sale Securities Gain (Loss) (Cost) Credit Total For the Quarter-To-Date periods ended: March 31, 2019 $ (1,617 ) $ (8,850 ) $ (1,100 ) $ (11,567 ) Other comprehensive income before reclassifications 1,744 — — 1,744 Amounts reclassified from accumulated other comprehensive income 133 43 176 Net current-period other comprehensive income 1,744 133 43 1,920 June 30, 2019 $ 127 $ (8,717 ) $ (1,057 ) $ (9,647 ) March 31, 2018 $ (4,066 ) $ (6,334 ) $ (885 ) $ (11,285 ) Other comprehensive loss before reclassifications (635 ) — — (635 ) Amounts reclassified from accumulated other comprehensive loss — 75 41 116 Net current-period other comprehensive income (loss) (635 ) 75 41 (519 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) For the Year-To-Date periods ended: December 31, 2018 $ (3,697 ) $ (8,971 ) $ (1,142 ) $ (13,810 ) Other comprehensive income or loss before reclassifications 3,824 — — 3,824 Amounts reclassified from accumulated other comprehensive income — 254 85 339 Net current-period other comprehensive income 3,824 254 85 4,163 June 30, 2019 $ 127 $ (8,717 ) $ (1,057 ) $ (9,647 ) December 31, 2017 $ (1,250 ) $ (6,380 ) $ (884 ) $ (8,514 ) Other comprehensive income or loss before reclassifications (3,120 ) — — (3,120 ) Amounts reclassified from accumulated other comprehensive income — 121 40 161 Net current-period other comprehensive income (3,120 ) 121 40 (2,959 ) Amounts reclassified from accumulated other comprehensive income $ (331 ) $ (331 ) June 30, 2018 $ (4,701 ) $ (6,259 ) $ (844 ) $ (11,804 ) (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: June 30, 2019 Amortization of defined benefit pension items: Prior-service costs $ (57 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (1) Salaries and Employee Benefits (236 ) Total before Tax 60 Provision for Income Taxes $ (176 ) Net of Tax Total reclassifications for the period $ (176 ) Net of Tax June 30, 2018 Amortization of defined benefit pension items: Prior-service costs $ (55 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (103 ) (1) Salaries and Employee Benefits (158 ) Total before Tax 42 Provision for Income Taxes $ (116 ) Net of Tax Total reclassifications for the period $ (116 ) Net of Tax For the Year-to-date periods ended: June 30, 2019 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 $ (113 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) (342 ) (1) Salaries and Employee Benefits (455 ) Total before Tax 116 Provision for Income Taxes $ (339 ) Net of Tax Total reclassifications for the period $ (339 ) 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 June 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 (54 ) (1) Salaries and Employee Benefits Actuarial gains/(losses) $ (163 ) (1) Salaries and Employee Benefits (217 ) Total before Tax 56 Provision for Income Taxes $ (161 ) Net of Tax Total reclassifications for the period $ (161 ) 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) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes information about stock option activity for the year to date period ended June 30, 2019 . Shares Weighted Average Exercise Price Outstanding at January 1, 2019 284,522 $ 25.67 Granted 52,000 31.71 Exercised (62,712 ) 21.12 Forfeited (11,726 ) 26.98 Outstanding at June 30, 2019 262,084 27.90 Vested at Period-End 145,120 24.89 Expected to Vest 116,964 31.64 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 5.75 Fair Value Assumptions: Dividend Yield 3.26 % Expected Volatility 22.58 % Risk Free Interest Rate 2.63 % Expected Lives (in years) 8.68 The following table summarizes information about restricted stock unit activity for the period ended June 30, 2019 . Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2019 3,377 $ 32.57 Granted 3,901 31.71 Non-vested at June 30, 2019 7,278 32.11 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed related to stock options for the periods ended June 30, 2019 and 2018 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount expensed $ 79 $ 80 $ 158 $ 163 The following table presents information on the amounts expensed related to restricted stock units for the periods ended June 30, 2019 and 2018 : For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Amount expensed $ 20 $ 9 $ 36 $ 15 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six -month periods ended June 30, 2019 and 2018 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended June 30, 2019: Service Cost 1 $ 365 $ 65 $ 31 Interest Cost 2 343 56 93 Expected Return on Plan Assets 2 (761 ) — — Amortization of Prior Service Cost 2 18 13 26 Amortization of Net Loss 2 154 30 (5 ) Net Periodic Cost $ 119 $ 164 $ 145 Plan Contributions During the Period $ — $ 117 $ 54 For the Three Months Ended June 30, 2018: Service Cost 1 $ 431 $ 196 $ 35 Interest Cost 2 274 54 68 Expected Return on Plan Assets 2 (896 ) — — Amortization of Prior Service (Credit) Cost 2 (13 ) 15 53 Amortization of Net Loss 2 64 33 6 Net Periodic (Benefit) Cost $ (140 ) $ 298 $ 162 Plan Contributions During the Period $ — $ 117 $ 102 Net Periodic Benefit Cost For the Six Months Ended June 30, 2019: Service Cost 1 $ 764 $ 162 $ 61 Interest Cost 2 740 108 182 Expected Return on Plan Assets 2 (1,531 ) — — Amortization of Prior Service (Credit) Cost 2 35 27 51 Amortization of Net Loss 2 307 57 (22 ) Net Periodic (Benefit) Cost $ 315 $ 354 $ 272 Plan Contributions During the Period $ — $ 233 $ 91 Estimated Future Contributions in the Current Fiscal Year $ — $ — $ — For the Six Months Ended June 30, 2018: Service Cost 1 $ 779 $ 207 $ 68 Interest Cost 2 799 104 167 Expected Return on Plan Assets 2 (1,681 ) — — Amortization of Prior Service (Credit) Cost 2 (25 ) 29 50 Amortization of Net Loss 2 97 66 — Net Periodic (Benefit) Cost $ (31 ) $ 406 $ 285 Plan Contributions During the Period $ — $ 233 $ 119 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) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 . 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: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Earnings Per Share - Basic: Net Income $ 8,934 $ 9,730 $ 17,668 $ 18,261 Weighted Average Shares - Basic 14,487 14,394 14,478 14,374 Earnings Per Share - Basic $ 0.62 $ 0.68 $ 1.22 $ 1.27 Earnings Per Share - Diluted: Net Income $ 8,934 $ 9,730 $ 17,668 $ 18,261 Weighted Average Shares - Basic 14,487 14,394 14,478 14,374 Dilutive Average Shares Attributable to Stock Options 40 86 45 85 Weighted Average Shares - Diluted 14,527 14,480 14,523 14,459 Earnings Per Share - Diluted $ 0.62 $ 0.67 $ 1.22 $ 1.26 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) Fair Value of Assets and Liabilities Measured on a Recurring Basis: June 30, 2019 Securities Available-for Sale: U.S. Government & Agency Obligations $ 17,524 $ — $ 17,524 $ — State and Municipal Obligations 967 — 967 — Mortgage-Backed Securities 266,587 — 266,587 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 285,878 — 285,878 — Equity Securities 1,850 — 1,850 — Total Securities Measured on a Recurring Basis $ 287,728 $ — $ 287,728 $ — December 31, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 46,765 $ — $ 46,765 $ — State and Municipal Obligations 1,195 — 1,195 — Mortgage-Backed Securities 268,775 — 268,775 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 317,535 317,535 Equity Securities 1,774 — 1,774 — Total Securities Measured on a Recurring Basis $ 319,309 $ — $ 319,309 $ — June 30, 2018 Securities Available-for Sale: U.S. Government & Agency Obligations $ 59,615 $ — $ 59,615 $ — State and Municipal Obligations 3,383 — 3,383 — Mortgage-Backed Securities 261,589 — 261,589 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 325,387 325,387 Equity Securities 1,802 — 1,802 — Total Securities Measured on a Recurring Basis $ 327,189 $ — $ 327,189 $ — Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Gains (Losses) Recognized in Earnings Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: June 30, 2019 Collateral Dependent Impaired Loans $ 37 $ — $ — $ 37 Other Real Estate Owned and Repossessed Assets, Net 1,373 — — 1,373 (164 ) December 31, 2018 Collateral Dependent Impaired Loans $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net 1,260 — — 1,260 (132 ) June 30, 2018 Collateral Dependent Impaired Loans $ 747 $ — $ — $ 747 Other Real Estate Owned and Repossessed Assets, Net 1,487 — — 1,487 (85 ) |
Fair Value, by Balance Sheet Grouping | The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 June 30, 2019 Cash and Cash Equivalents $ 62,695 $ 62,695 $ 62,695 $ — $ — Securities Available-for-Sale 285,878 285,878 — 285,878 — Securities Held-to-Maturity 262,541 266,068 — 266,068 — Equity Securities 1,850 1,850 — 1,850 — Federal Home Loan Bank and Federal Reserve Bank Stock 8,202 8,202 — 8,202 — Net Loans 2,259,613 2,218,244 — — 2,218,244 Accrued Interest Receivable 7,491 7,491 — 7,491 — Deposits 2,503,753 2,499,849 — 2,499,849 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 51,149 51,149 — 51,149 — Federal Home Loan Bank Overnight Advances 83,000 83,000 — 83,000 — Federal Home Loan Bank Term Advances 30,000 29,943 — 29,943 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,187 1,187 — 1,187 — December 31, 2018 Cash and Cash Equivalents $ 84,239 $ 84,239 $ 84,239 $ — $ — Securities Available-for-Sale 317,535 317,535 — 317,535 — Securities Held-to-Maturity 283,476 280,338 — 280,338 — Equity Securities 1,774 1,774 1,774 Federal Home Loan Bank and Federal Reserve Bank Stock 15,506 15,506 — 15,506 — Net Loans 2,176,019 2,114,372 — — 2,114,372 Accrued Interest Receivable 7,035 7,035 — 7,035 — Deposits 2,345,584 2,338,410 — 2,338,410 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 54,659 54,659 — 54,659 — Federal Home Loan Bank Overnight Advances 234,000 234,000 — 234,000 — Federal Home Loan Bank Term Advances 45,000 44,652 — 44,652 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 570 570 — 570 — June 30, 2018 Cash and Cash Equivalents $ 60,741 $ 60,741 $ 60,741 $ — $ — Securities Available-for-Sale 325,387 325,387 — 325,387 — Securities Held-to-Maturity 297,885 292,605 — 292,605 — Equity Securities 1,802 1,802 — 1,802 Federal Home Loan Bank and Federal Reserve Bank Stock 11,089 11,089 — 11,089 — Net Loans 2,038,222 1,971,756 — — 1,971,756 Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 Accrued Interest Receivable 6,729 6,729 — 6,729 — Deposits 2,304,781 2,295,796 — 2,295,796 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 60,248 60,248 — 60,248 — Federal Home Loan Bank Overnight Advances 136,000 136,000 — 136,000 — Federal Home Loan Bank Term Advances 45,000 44,495 — 44,495 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 540 540 — 540 — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following includes quantitative data related to the Company's leases as of and for the six months ended June 30, 2019 : Finance Lease Amounts: Classification Right-of-use Assets Premises and Equipment, Net $ 5,226 Lease Liabilities Finance Leases 5,270 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,859 Lease Liabilities Other Liabilities 5,918 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 Interest on Lease Liabilities 43 Operating Lease Cost 366 Short-term Lease Cost 56 Variable Lease Cost 95 Total Lease Cost $ 604 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 43 Operating Outgoing Cash Flows From Operating Leases 355 Financing Outgoing Cash Flows From Finance Leases 12 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities 5,271 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities 6,147 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 31.29 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 14.07 Weighted-average Discount Rate—Finance Leases % 3.75 % Weighted-average Discount Rate—Operating Leases % 3.47 % |
Lessee, Operating Lease, Liability, Maturity | Future Lease Payments at June 30, 2019 are as follows: Operating Leases Financing Leases Twelve Months Ended: 6/30/2020 $ 811 $ 186 6/30/2021 735 233 6/30/2022 604 242 6/30/2023 529 243 6/30/2024 530 244 Thereafter 4,373 8,323 Total Undiscounted Cash Flows $ 7,582 $ 9,471 Less: Net Present Value Adjustment 1,664 4,201 Lease Liability $ 5,918 $ 5,270 |
Finance Lease, Liability, Maturity | Future Lease Payments at June 30, 2019 are as follows: Operating Leases Financing Leases Twelve Months Ended: 6/30/2020 $ 811 $ 186 6/30/2021 735 233 6/30/2022 604 242 6/30/2023 529 243 6/30/2024 530 244 Thereafter 4,373 8,323 Total Undiscounted Cash Flows $ 7,582 $ 9,471 Less: Net Present Value Adjustment 1,664 4,201 Lease Liability $ 5,918 $ 5,270 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments on operating leases at December 31, 2018 were as follows: Operating Leases 2019 $ 857 2020 626 2021 497 2022 357 2023 286 2024 and beyond 2,776 Total Minimum Lease Payments $ 5,399 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use assets | $ 5,859 | |
Operating lease, liability | $ 5,918 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use assets | $ 7,900 | |
Operating lease, liability | $ 8,000 |
Investment Securities Available
Investment Securities Available for Sale (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | Jun. 30, 2018USD ($)security |
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | $ 285,706 | $ 322,491 | $ 331,689 |
Available-for-Sale | 285,878 | 317,535 | 325,387 |
Gross Unrealized Gains | 1,326 | 290 | 338 |
Gross Unrealized Losses | 1,154 | 5,246 | 6,640 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 12,996 | ||
From 1 - 5 Years | 171,154 | ||
From 5 - 10 Years | 75,603 | ||
Over 10 Years | 25,953 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 12,987 | ||
From 1 - 5 Years | 171,510 | ||
From 5 - 10 Years | 75,538 | ||
Over 10 Years | 25,843 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 24,983 | 107,550 | 163,280 |
12 Months or Longer | 143,483 | 172,192 | 115,406 |
Total | $ 168,466 | $ 279,742 | $ 278,686 |
Number of Securities in a Continuous Loss Position | security | 64 | 97 | 100 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 234 | $ 841 | $ 2,706 |
12 Months or Longer | 920 | 4,405 | 3,934 |
Total | 1,154 | 5,246 | 6,640 |
Collateral Pledged | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, Pledged as Collateral | 246,202 | 236,163 | 282,481 |
U.S. Government & Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 17,506 | 47,071 | 60,199 |
Available-for-Sale | 17,524 | 46,765 | 59,615 |
Gross Unrealized Gains | 31 | 0 | 0 |
Gross Unrealized Losses | 13 | 306 | 584 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 12,503 | ||
From 1 - 5 Years | 5,003 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 12,490 | ||
From 1 - 5 Years | 5,034 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 35 | 0 | 17,218 |
12 Months or Longer | 12,454 | 46,765 | 42,397 |
Total | $ 12,489 | $ 46,765 | $ 59,615 |
Number of Securities in a Continuous Loss Position | security | 2 | 10 | 14 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 297 |
12 Months or Longer | 13 | 306 | 287 |
Total | 13 | 306 | 584 |
U.S. Government & Agency Obligations | US Treasury Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 0 | 0 | 0 |
Available-for-Sale | 0 | 0 | 0 |
U.S. Government & Agency Obligations | Agency Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 17,506 | 47,071 | 60,199 |
Available-for-Sale | 17,524 | 46,765 | 59,615 |
State and Municipal Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 965 | 1,193 | 3,377 |
Available-for-Sale | 967 | 1,195 | 3,383 |
Gross Unrealized Gains | 2 | 2 | 6 |
Gross Unrealized Losses | 0 | 0 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 226 | ||
From 1 - 5 Years | 299 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 440 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 229 | ||
From 1 - 5 Years | 298 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 440 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 1,797 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 1,797 |
Number of Securities in a Continuous Loss Position | security | 0 | 0 | 6 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Mortgage- Backed Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 266,235 | 273,227 | 267,113 |
Available-for-Sale | 266,587 | 268,775 | 261,589 |
Gross Unrealized Gains | 1,293 | 288 | 332 |
Gross Unrealized Losses | 941 | 4,740 | 5,856 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 267 | ||
From 1 - 5 Years | 165,852 | ||
From 5 - 10 Years | 75,603 | ||
Over 10 Years | 24,513 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 268 | ||
From 1 - 5 Years | 166,178 | ||
From 5 - 10 Years | 75,538 | ||
Over 10 Years | 24,603 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 24,948 | 107,550 | 144,265 |
12 Months or Longer | 130,229 | 124,627 | 72,209 |
Total | $ 155,177 | $ 232,177 | $ 216,474 |
Number of Securities in a Continuous Loss Position | security | 61 | 86 | 79 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 234 | $ 841 | $ 2,409 |
12 Months or Longer | 707 | 3,899 | 3,447 |
Total | 941 | 4,740 | 5,856 |
Mortgage- Backed Securities | US Government Agencies Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 67,760 | 72,095 | 68,030 |
Available-for-Sale | 67,613 | 71,800 | 68,083 |
Mortgage- Backed Securities | US Government-sponsored Enterprises Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 198,475 | 201,132 | 199,083 |
Available-for-Sale | 198,974 | 196,975 | 193,506 |
Corporate and Other Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 1,000 | 1,000 | 1,000 |
Available-for-Sale | 800 | 800 | 800 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 200 | 200 | 200 |
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 | 0 |
12 Months or Longer | 800 | 800 | 800 |
Total | $ 800 | $ 800 | $ 800 |
Number of Securities in a Continuous Loss Position | security | 1 | 1 | 1 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 200 | 200 | 200 |
Total | $ 200 | $ 200 | $ 200 |
Investment Securities Held to M
Investment Securities Held to Maturity (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | Jun. 30, 2018USD ($)security |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | $ 262,541 | $ 283,476 | $ 297,885 |
Held-To-Maturity Securities, at Fair Value | 266,068 | 280,338 | 292,605 |
Gross Unrealized Gains | 3,621 | 486 | 497 |
Gross Unrealized Losses | 94 | 3,624 | 5,777 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 25,944 | ||
From 1 - 5 Years | 154,910 | ||
From 5 - 10 Years | 80,037 | ||
Over 10 Years | 1,650 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 26,016 | ||
From 1 - 5 Years | 156,780 | ||
From 5 - 10 Years | 81,593 | ||
Over 10 Years | 1,679 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 92 | 65,402 | 118,589 |
12 Months or Longer | 16,085 | 124,617 | 93,735 |
Total | $ 16,177 | $ 190,019 | $ 212,324 |
Number of Securities in a Continuous Loss Position | security | 37 | 458 | 512 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 618 | $ 1,654 |
12 Months or Longer | 94 | 3,006 | 4,123 |
Total | 94 | 3,624 | 5,777 |
Equity Securities | 1,850 | 1,774 | 1,802 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 220,529 | 235,782 | 244,016 |
Held-To-Maturity Securities, at Fair Value | 223,654 | 233,359 | 239,841 |
Gross Unrealized Gains | 3,206 | 486 | 497 |
Gross Unrealized Losses | 81 | 2,909 | 4,672 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 24,060 | ||
From 1 - 5 Years | 114,782 | ||
From 5 - 10 Years | 80,037 | ||
Over 10 Years | 1,650 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 24,109 | ||
From 1 - 5 Years | 116,273 | ||
From 5 - 10 Years | 81,593 | ||
Over 10 Years | 1,679 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 159 | 32,093 | 68,612 |
12 Months or Longer | 14,374 | 110,947 | 90,948 |
Total | $ 14,533 | $ 143,040 | $ 159,560 |
Number of Securities in a Continuous Loss Position | security | 36 | 411 | 465 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 162 | $ 633 |
12 Months or Longer | 81 | 2,747 | 4,039 |
Total | 81 | 2,909 | 4,672 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 42,012 | 47,694 | 53,869 |
Held-To-Maturity Securities, at Fair Value | 42,414 | 46,979 | 52,764 |
Gross Unrealized Gains | 415 | 0 | 0 |
Gross Unrealized Losses | 13 | 715 | 1,105 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 1,884 | ||
From 1 - 5 Years | 40,128 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 1,907 | ||
From 1 - 5 Years | 40,507 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | (67) | 33,309 | 49,977 |
12 Months or Longer | 1,711 | 13,670 | 2,787 |
Total | $ 1,644 | $ 46,979 | $ 52,764 |
Number of Securities in a Continuous Loss Position | security | 1 | 47 | 47 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 456 | $ 1,021 |
12 Months or Longer | 13 | 259 | 84 |
Total | 13 | 715 | 1,105 |
Fair Value, Measurements, Recurring | |||
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Equity Securities | 1,850 | 1,774 | 1,802 |
Collateral Pledged | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, Pledged as Collateral | 251,639 | 266,341 | 278,627 |
US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 1,942 | 2,180 | 3,265 |
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | 1,948 | 2,143 | 2,346 |
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 | 40,070 | 45,514 | 50,604 |
US Government-sponsored Enterprises Debt Securities | Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | $ 40,466 | $ 44,836 | $ 50,418 |
Investment Securities Unrealize
Investment Securities Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net Gain on Securities Transactions | $ 0 | $ 223 | $ 76 | $ 241 |
Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period | 0 | 0 | 0 | 0 |
Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date | $ 0 | $ 223 | $ 76 | $ 241 |
Loans Loan Categories and Past
Loans Loan Categories and Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 9,791 | $ 13,177 | $ 9,777 |
Current Loans | 2,270,517 | 2,183,038 | 2,048,085 |
Total Loans | 2,280,308 | 2,196,215 | 2,057,862 |
Loans 90 or More Days Past Due and Still Accruing Interest | 457 | 1,225 | 170 |
Nonaccrual Loans | 4,949 | 4,159 | 3,880 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 6,660 | 5,879 | 6,776 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,289 | 4,093 | 1,008 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,842 | 3,205 | 1,993 |
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 192 | 170 | 46 |
Current Loans | 138,139 | 136,720 | 118,835 |
Total Loans | 138,331 | 136,890 | 118,881 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 58 | 403 | 633 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 119 | 121 | 3 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 73 | 49 | 15 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 0 | 28 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 328 | 897 | 963 |
Current Loans | 489,946 | 483,665 | 463,430 |
Total Loans | 490,274 | 484,562 | 464,393 |
Loans 90 or More Days Past Due and Still Accruing Interest | 220 | 0 | 0 |
Nonaccrual Loans | 248 | 789 | 963 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 0 | 108 | 0 |
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 | 328 | 789 | 963 |
Consumer Loans Financing | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 6,060 | 8,077 | 5,720 |
Current Loans | 772,964 | 711,433 | 656,188 |
Total Loans | 779,024 | 719,510 | 661,908 |
Loans 90 or More Days Past Due and Still Accruing Interest | 45 | 144 | 28 |
Nonaccrual Loans | 412 | 658 | 459 |
Consumer Loans Financing | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 4,935 | 5,369 | 4,769 |
Consumer Loans Financing | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 948 | 2,136 | 720 |
Consumer Loans Financing | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 177 | 572 | 231 |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 3,211 | 4,033 | 3,048 |
Current Loans | 869,468 | 851,220 | 809,632 |
Total Loans | 872,679 | 855,253 | 812,680 |
Loans 90 or More Days Past Due and Still Accruing Interest | 192 | 1,081 | 142 |
Nonaccrual Loans | 4,231 | 2,309 | 1,825 |
Residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,606 | 281 | 2,004 |
Residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 268 | 1,908 | 273 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 1,337 | $ 1,844 | $ 771 |
Loans Supplemental Loan Informa
Loans Supplemental Loan Information (Details) - Consumer Portfolio Segment | 6 Months Ended |
Jun. 30, 2019 | |
Credit Card Receivable | Minimum | |
Schedule of Financing Receivable Terms [Line Items] | |
Principal repayment terms, period | 1 year |
Credit Card Receivable | Maximum | |
Schedule of Financing Receivable Terms [Line Items] | |
Principal repayment terms, period | 5 years |
Automobile Loan | Minimum | |
Schedule of Financing Receivable Terms [Line Items] | |
Principal repayment terms, period | 3 years |
Automobile Loan | Maximum | |
Schedule of Financing Receivable Terms [Line Items] | |
Principal repayment terms, period | 7 years |
Loans Allowance for Loan Losses
Loans Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | $ 20,373 | $ 19,057 | $ 20,196 | $ 18,586 | |
Charge-offs | (368) | (264) | (830) | (634) | |
Recoveries | 235 | 218 | 402 | 313 | |
Provision | 455 | 629 | 927 | 1,375 | |
Allowance for Loan Losses, Ending Balance | 20,695 | 19,640 | 20,695 | 19,640 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 5 | 185 | 5 | 185 | $ 4 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 20,690 | 19,455 | 20,690 | 19,455 | 20,192 |
Ending Loan Balance - Individually Evaluated for Impairment | 2,564 | 2,492 | 2,564 | 2,492 | 3,223 |
Ending Loan Balance - Collectively Evaluated for Impairment | 2,277,744 | 2,055,370 | 2,277,744 | 2,055,370 | 2,192,992 |
Commercial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 1,250 | 1,119 | 1,218 | 1,873 | |
Charge-offs | 0 | 0 | (1) | (16) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (19) | (175) | 14 | (913) | |
Allowance for Loan Losses, Ending Balance | 1,231 | 944 | 1,231 | 944 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 5 | 88 | 5 | 88 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 1,226 | 856 | 1,226 | 856 | 1,218 |
Ending Loan Balance - Individually Evaluated for Impairment | 37 | 489 | 37 | 489 | 430 |
Ending Loan Balance - Collectively Evaluated for Impairment | 138,294 | 118,392 | 138,294 | 118,392 | 136,460 |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 5,589 | 5,412 | 5,644 | 4,504 | |
Charge-offs | 0 | 0 | (29) | 0 | |
Recoveries | 0 | 3 | 0 | 12 | |
Provision | (130) | 423 | (156) | 1,322 | |
Allowance for Loan Losses, Ending Balance | 5,459 | 5,838 | 5,459 | 5,838 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 44 | 0 | 44 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 5,459 | 5,794 | 5,459 | 5,794 | 5,644 |
Ending Loan Balance - Individually Evaluated for Impairment | 1 | 813 | 1 | 813 | 793 |
Ending Loan Balance - Collectively Evaluated for Impairment | 490,273 | 463,580 | 490,273 | 463,580 | 483,769 |
Consumer Loans Financing | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 9,409 | 8,019 | 8,882 | 7,604 | |
Charge-offs | (368) | (248) | (786) | (595) | |
Recoveries | 235 | 215 | 402 | 301 | |
Provision | 378 | 351 | 1,156 | 1,027 | |
Allowance for Loan Losses, Ending Balance | 9,654 | 8,337 | 9,654 | 8,337 | |
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 | 9,654 | 8,337 | 9,654 | 8,337 | 8,882 |
Ending Loan Balance - Individually Evaluated for Impairment | 124 | 110 | 124 | 110 | 101 |
Ending Loan Balance - Collectively Evaluated for Impairment | 778,900 | 661,798 | 778,900 | 661,798 | 719,409 |
Residential | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,125 | 4,507 | 4,452 | 4,605 | |
Charge-offs | 0 | (16) | (14) | (23) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 226 | 30 | (87) | (61) | |
Allowance for Loan Losses, Ending Balance | 4,351 | 4,521 | 4,351 | 4,521 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 53 | 0 | 53 | 4 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 4,351 | 4,468 | 4,351 | 4,468 | 4,448 |
Ending Loan Balance - Individually Evaluated for Impairment | 2,402 | 1,080 | 2,402 | 1,080 | 1,899 |
Ending Loan Balance - Collectively Evaluated for Impairment | $ 870,277 | $ 811,600 | $ 870,277 | $ 811,600 | $ 853,354 |
Loans Credit Quality Indicators
Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | $ 593,097 | $ 586,452 | $ 547,581 |
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 2,647 | 0 | 5,948 |
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 32,861 | 34,211 | 28,938 |
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 789 | 807 |
Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 1,646,823 | 1,570,571 | 1,472,304 |
Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 4,880 | 4,192 | 2,284 |
Commercial | Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 131,886 | 129,584 | 110,911 |
Commercial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 123 | 0 | 5,948 |
Commercial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 6,322 | 7,306 | 2,023 |
Commercial | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 461,211 | 456,868 | 436,670 |
Commercial Real Estate Portfolio Segment | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 2,524 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 26,539 | 26,905 | 26,915 |
Commercial Real Estate Portfolio Segment | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 789 | 807 |
Consumer Loans Financing | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 778,567 | 718,708 | 661,449 |
Consumer Loans Financing | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 457 | 802 | 459 |
Residential | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 868,256 | 851,863 | 810,855 |
Residential | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | $ 4,423 | $ 3,390 | $ 1,825 |
Loans Impaired Loans (Details)
Loans Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Recorded Investment: | |||
With No Related Allowance | $ 2,527 | $ 901 | $ 2,929 |
With a Related Allowance | 37 | 1,620 | 294 |
Unpaid Principal Balance: | |||
With No Related Allowance | 2,527 | 914 | 2,928 |
With a Related Allowance | 36 | 1,578 | 293 |
Average Recorded Balance: | |||
With No Related Allowance | 2,737 | 1,138 | |
With a Related Allowance | 19 | 1,622 | |
Interest Income Recognized: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Commercial | |||
Recorded Investment: | |||
With No Related Allowance | 0 | 0 | 430 |
With a Related Allowance | 37 | 479 | 0 |
Unpaid Principal Balance: | |||
With No Related Allowance | 0 | 0 | 429 |
With a Related Allowance | 36 | 489 | 0 |
Average Recorded Balance: | |||
With No Related Allowance | 19 | 0 | |
With a Related Allowance | 19 | 481 | |
Interest Income Recognized: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Commercial Real Estate Portfolio Segment | |||
Recorded Investment: | |||
With No Related Allowance | 1 | 7 | 793 |
With a Related Allowance | 0 | 790 | 0 |
Unpaid Principal Balance: | |||
With No Related Allowance | 1 | 7 | 793 |
With a Related Allowance | 0 | 806 | 0 |
Average Recorded Balance: | |||
With No Related Allowance | 195 | 8 | |
With a Related Allowance | 0 | 787 | |
Interest Income Recognized: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Consumer Portfolio Segment | |||
Recorded Investment: | |||
With No Related Allowance | 124 | 110 | 101 |
With a Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance: | |||
With No Related Allowance | 124 | 110 | 100 |
With a Related Allowance | 0 | 0 | 0 |
Average Recorded Balance: | |||
With No Related Allowance | 113 | 100 | |
With a Related Allowance | 0 | 0 | |
Interest Income Recognized: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Residential | |||
Recorded Investment: | |||
With No Related Allowance | 2,402 | 784 | 1,605 |
With a Related Allowance | 0 | 351 | 294 |
Unpaid Principal Balance: | |||
With No Related Allowance | 2,402 | 797 | 1,606 |
With a Related Allowance | 0 | 283 | $ 293 |
Average Recorded Balance: | |||
With No Related Allowance | 2,410 | 1,030 | |
With a Related Allowance | 0 | 354 | |
Interest Income Recognized: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | $ 0 | $ 0 |
Loans Modified in Trouble Debt
Loans Modified in Trouble Debt Restructurings (Details) - Entity Loan Modification Program - Payment Deferral $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 4 | 3 | 5 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 34 | $ 26 | $ 47 | $ 28 |
Post-Modification Outstanding Recorded Investment | $ 34 | $ 26 | $ 47 | $ 28 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [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 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Troubled Debt Restructuring [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, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | contract | 4 | 3 | 5 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 34 | $ 26 | $ 47 | $ 28 |
Post-Modification Outstanding Recorded Investment | $ 34 | $ 26 | $ 47 | $ 28 |
Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | ||||
Financing Receivable, Troubled Debt Restructuring [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 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 329,337 | $ 321,143 | $ 324,173 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 4,396 | 4,466 | 3,941 |
Fair Value | $ 20 | $ 12 | $ 11 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Before-Tax Amount | ||||
Other Comprehensive Income | $ 2,576 | $ (695) | $ 5,583 | $ (3,968) |
Tax (Expense) Benefit | ||||
Other Comprehensive Income | (656) | 176 | (1,420) | 1,009 |
Net of Tax Amount | ||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period | 1,744 | (635) | ||
Amortization of Net Retirement Plan | 176 | 116 | ||
Other Comprehensive Loss | 1,920 | (519) | 4,163 | (2,959) |
Unrealized Gains and Losses on Available for Sale Securities | ||||
Before-Tax Amount | ||||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | 2,340 | (853) | 5,128 | (4,185) |
Tax (Expense) Benefit | ||||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | (596) | 218 | (1,304) | 1,065 |
Net of Tax Amount | ||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period | 1,744 | (635) | 3,824 | (3,120) |
Amortization of Net Retirement Plan | 0 | 0 | 0 | |
Other Comprehensive Loss | 1,744 | (635) | 3,824 | (3,120) |
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||
Before-Tax Amount | ||||
Amortization of Net Retirement Plan | 179 | 103 | 342 | 163 |
Tax (Expense) Benefit | ||||
Amortization of Net Retirement Plan | (46) | (28) | (88) | (42) |
Net of Tax Amount | ||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period | 0 | 0 | 0 | 0 |
Amortization of Net Retirement Plan | 133 | 75 | 254 | 121 |
Other Comprehensive Loss | 133 | 75 | 254 | 121 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service | ||||
Before-Tax Amount | ||||
Amortization of Net Retirement Plan | 57 | 55 | 113 | 54 |
Tax (Expense) Benefit | ||||
Amortization of Net Retirement Plan | (14) | (14) | (28) | (14) |
Net of Tax Amount | ||||
Amortization of Net Retirement Plan | $ 43 | $ 41 | $ 85 | $ 40 |
Comprehensive Income Changes in
Comprehensive Income Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | $ 276,609 | $ 252,734 | $ 269,584 | $ 249,603 |
Other comprehensive income before reclassifications | 1,744 | (635) | ||
Amounts reclassified from accumulated other comprehensive income | 176 | 116 | ||
Other Comprehensive Loss | 1,920 | (519) | 4,163 | (2,959) |
Stockholders' equity, ending balance | 284,649 | 259,488 | 284,649 | 259,488 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (11,567) | (11,285) | (13,810) | (8,514) |
Other comprehensive income before reclassifications | 3,824 | (3,120) | ||
Amounts reclassified from accumulated other comprehensive income | 339 | 161 | ||
Other Comprehensive Loss | 1,920 | (519) | 4,163 | (2,959) |
Amounts reclassified from accumulated other comprehensive income | (331) | |||
Stockholders' equity, ending balance | (9,647) | (11,804) | (9,647) | (11,804) |
Unrealized Gains and Losses on Available for Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (1,617) | (4,066) | (3,697) | (1,250) |
Other comprehensive income before reclassifications | 1,744 | (635) | 3,824 | (3,120) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | |
Other Comprehensive Loss | 1,744 | (635) | 3,824 | (3,120) |
Amounts reclassified from accumulated other comprehensive income | (331) | |||
Stockholders' equity, ending balance | 127 | (4,701) | 127 | (4,701) |
Net Actuarial Gain (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (8,850) | (6,334) | (8,971) | (6,380) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 133 | 75 | 254 | 121 |
Other Comprehensive Loss | 133 | 75 | 254 | 121 |
Stockholders' equity, ending balance | (8,717) | (6,259) | (8,717) | (6,259) |
Net Priot Service (Cost) Credit | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Stockholders' equity, beginning balance | (1,100) | (885) | (1,142) | (884) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 43 | 41 | 85 | 40 |
Other Comprehensive Loss | 43 | 41 | 85 | 40 |
Stockholders' equity, ending balance | $ (1,057) | $ (844) | $ (1,057) | $ (844) |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ 2,306 | $ 2,322 | $ 4,456 | $ 4,380 |
Net Income | (176) | (116) | (339) | (161) |
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) | (57) | (55) | (113) | (54) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other nonoperating income (expense) | (179) | (103) | (342) | (163) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (236) | (158) | (455) | (217) |
Provision for income taxes | 60 | 42 | 116 | 56 |
Net Income | $ (176) | $ (116) | (339) | (161) |
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 | 0 | ||
Total before tax | 0 | 0 | ||
Provision for income taxes | 0 | 0 | ||
Net Income | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 6 Months Ended | |
Jun. 30, 2019plan$ / sharesshares | Sep. 27, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Number of plans | plan | 3 | |
Stock dividend, percent | 3.00% | |
Weighted Average Exercise Price | ||
Fair Value (in dollars per share) | $ 5.75 | |
Dividend Yield | 3.26% | |
Expected Volatility | 22.58% | |
Risk Free Interest Rate | 2.63% | |
Expected Lives, in years | 8 years 8 months 5 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 | |
Shares | ||
Outstanding, beginning of period (in shares) | shares | 284,522 | |
Granted (in shares) | shares | 52,000 | |
Exercised (in shares) | shares | (62,712) | |
Forfeited (in shares) | shares | (11,726) | |
Outstanding, end of period (in shares) | shares | 262,084 | |
Exercisable at period end (in shares) | shares | 145,120 | |
Vested and expected to vest (in shares) | shares | 116,964 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 25.67 | |
Granted (in dollars per share) | 31.71 | |
Exercised (in dollars per share) | 21.12 | |
Forfeited (in dollars per share) | 26.98 | |
Outstanding, end of period (in dollars per share) | 27.90 | |
Exercisable at period end (in dollars per share) | 24.89 | |
Vested and expected to vest (in dollars per share) | $ 31.64 | |
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) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Stock Units | |
Balance at Beginning of Period (in shares) | shares | 3,377 |
Granted (in shares) | shares | 3,901 |
Balance at End of Period (in shares) | shares | 7,278 |
Weighted Average Grant Date Fair Value | |
Outstanding at Beginning of period (in dollars per share) | $ / shares | $ 32.57 |
Granted (in dollars per share) | $ / shares | 31.71 |
Outstanding at End of period (in dollars per share) | $ / shares | $ 32.11 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount expensed | $ 79 | $ 80 | $ 158 | $ 163 |
Discount from market price, percent | 5.00% | |||
Restricted Stock Units (RSU) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount expensed | $ 20 | $ 9 | $ 36 | $ 15 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Net Periodic Benefit Cost [Line Items] | |||||
Employer matching contribution, percentage | 5.00% | ||||
Employees' Pension Plan | |||||
Net Periodic Benefit Cost [Line Items] | |||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 3.43% | ||||
Service Cost | $ 365 | $ 431 | $ 764 | $ 779 | |
Interest Cost | 343 | 274 | 740 | 799 | |
Expected Return on Plan Assets | (761) | (896) | (1,531) | (1,681) | |
Amortization of Prior Service (Credit) Cost | 18 | (13) | 35 | (25) | |
Amortization of Net Loss | 154 | 64 | 307 | 97 | |
Net Periodic Cost | 119 | (140) | 315 | (31) | |
Plan Contributions During the Period | 0 | 0 | 0 | 0 | |
Estimated Future Contributions in the Current Fiscal Year | 0 | 0 | |||
Select Executive Retirement Plan | |||||
Net Periodic Benefit Cost [Line Items] | |||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 4.46% | ||||
Service Cost | 65 | 196 | 162 | 207 | |
Interest Cost | 56 | 54 | 108 | 104 | |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 | |
Amortization of Prior Service (Credit) Cost | 13 | 15 | 27 | 29 | |
Amortization of Net Loss | 30 | 33 | 57 | 66 | |
Net Periodic Cost | 164 | 298 | 354 | 406 | |
Plan Contributions During the Period | 117 | 117 | 233 | 233 | |
Estimated Future Contributions in the Current Fiscal Year | 0 | 0 | |||
Post-Retirement Benefit Plans | |||||
Net Periodic Benefit Cost [Line Items] | |||||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 4.88% | ||||
Service Cost | 31 | 35 | 61 | 68 | |
Interest Cost | 93 | 68 | 182 | 167 | |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 | |
Amortization of Prior Service (Credit) Cost | 26 | 53 | 51 | 50 | |
Amortization of Net Loss | (5) | 6 | (22) | 0 | |
Net Periodic Cost | 145 | 162 | 272 | 285 | |
Plan Contributions During the Period | 54 | $ 102 | 91 | $ 119 | |
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 | 6 Months Ended | ||||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 27, 2018 | ||||||
Earnings Per Share [Abstract] | ||||||||||
Stock dividend, percent | 3.00% | |||||||||
Net Income | $ 8,934 | $ 9,730 | $ 17,668 | $ 18,261 | ||||||
Weighted Average Shares - Basic (in shares) | 14,487 | [1] | 14,394 | [2] | 14,478 | [1] | 14,374 | [2] | ||
Earnings Per Share - Basic (in dollars per share) | $ 0.62 | [1] | $ 0.68 | [1] | $ 1.22 | [1] | $ 1.27 | [2] | ||
Dilutive Average Shares Attributable to Stock Options (in shares) | 40 | 86 | 45 | 85 | ||||||
Weighted Average Shares - Diluted (in shares) | [2] | 14,527 | 14,480 | 14,523 | 14,459 | |||||
Earnings Per Share - Diluted (in dollars per share) | $ 0.62 | [1] | $ 0.67 | [1] | $ 1.22 | [1] | $ 1.26 | [2] | ||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend. | |||||||||
[2] | 2018 Share and Per Share Amounts have been restated for the September 27, 2018 3% stock dividend. |
Fair Values - Recurring and No
Fair Values - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 285,878 | $ 317,535 | $ 325,387 |
Equity Securities | 1,850 | 1,774 | 1,802 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 285,878 | 317,535 | 325,387 |
Equity Securities | 1,850 | 1,774 | 1,802 |
Total Securities Measured on a Recurring Basis | 287,728 | 319,309 | 327,189 |
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 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 285,878 | 317,535 | 325,387 |
Equity Securities | 1,850 | 1,774 | 1,802 |
Total Securities Measured on a Recurring Basis | 287,728 | 319,309 | 327,189 |
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 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Impaired Loans | 37 | 0 | 747 |
Collateral Dependent Impaired Loans, Life-to-Date Gains (Losses) | |||
Other Real Estate Owned and Repossessed Assets, Net | 1,373 | 1,260 | 1,487 |
Other Real Estate owned and Repossessed Assets, Net, Life-to-Date Gains (Losses) | (164) | (132) | (85) |
Fair Value, Measurements, Nonrecurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Impaired Loans | 0 | 0 | 0 |
Other Real Estate Owned and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Impaired Loans | 0 | 0 | 0 |
Other Real Estate Owned and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Impaired Loans | 37 | 0 | 747 |
Other Real Estate Owned and Repossessed Assets, Net | 1,373 | 1,260 | 1,487 |
U.S. Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 17,524 | 46,765 | 59,615 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 17,524 | 46,765 | 59,615 |
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 | 0 | 0 |
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 | 17,524 | 46,765 | 59,615 |
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 | 0 | 0 |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 967 | 1,195 | 3,383 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 967 | 1,195 | 3,383 |
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 | 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 | 967 | 1,195 | 3,383 |
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 | 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 | 266,587 | 268,775 | 261,589 |
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 | 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 | 266,587 | 268,775 | 261,589 |
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 | 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 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 0 | $ 0 | $ 0 |
Fair Values - Fair Value by Bal
Fair Values - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | $ 62,695 | $ 84,239 | $ 60,741 | $ 72,838 |
Available-for-Sale | 285,878 | 317,535 | 325,387 | |
Held-To-Maturity Securities, at Amortized Cost | 262,541 | 283,476 | 297,885 | |
Held-To-Maturity Securities, at Fair Value | 266,068 | 280,338 | 292,605 | |
Equity Securities | 1,850 | 1,774 | 1,802 | |
Net Loans | 2,259,613 | 2,176,019 | 2,038,222 | |
Deposits | 2,503,753 | 2,345,584 | 2,304,781 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 51,149 | 54,659 | 60,248 | |
Federal Home Loan Bank Overnight Advances | 83,000 | 234,000 | 136,000 | |
Federal Home Loan Bank Term Advances | 30,000 | 45,000 | 45,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 62,695 | 60,741 | ||
Available-for-Sale | 285,878 | 317,535 | 325,387 | |
Held-To-Maturity Securities, at Amortized Cost | 262,541 | 283,476 | 297,885 | |
Equity Securities | 1,850 | 1,774 | 1,802 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 8,202 | 15,506 | 11,089 | |
Net Loans | 2,259,613 | 2,176,019 | 2,038,222 | |
Accrued Interest Receivable | 7,491 | 7,035 | 6,729 | |
Deposits | 2,503,753 | 2,345,584 | 2,304,781 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 51,149 | 54,659 | 60,248 | |
Federal Home Loan Bank Overnight Advances | 83,000 | 234,000 | 136,000 | |
Federal Home Loan Bank Term Advances | 30,000 | 45,000 | 45,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 1,187 | 570 | 540 | |
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 62,695 | 84,239 | 60,741 | |
Available-for-Sale | 285,878 | 317,535 | 325,387 | |
Held-To-Maturity Securities, at Fair Value | 266,068 | 280,338 | 292,605 | |
Equity Securities | 1,850 | 1,774 | 1,802 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 8,202 | 15,506 | 11,089 | |
Net Loans, at Fair Value | 2,218,244 | 2,114,372 | 1,971,756 | |
Accrued Interest Receivable, Fair Value Disclosure | 7,491 | 7,035 | 6,729 | |
Deposits, at Fair Value | 2,499,849 | 2,338,410 | 2,295,796 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 51,149 | 54,659 | 60,248 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 83,000 | 234,000 | 136,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 29,943 | 44,652 | 44,495 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 1,187 | 570 | 540 | |
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 | 62,695 | 84,239 | 60,741 | |
Available-for-Sale | 0 | 0 | 0 | |
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | 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 | 285,878 | 317,535 | 325,387 | |
Held-To-Maturity Securities, at Fair Value | 266,068 | 280,338 | 292,605 | |
Equity Securities | 1,850 | 1,774 | 1,802 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 8,202 | 15,506 | 11,089 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 7,491 | 7,035 | 6,729 | |
Deposits, at Fair Value | 2,499,849 | 2,338,410 | 2,295,796 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, at Fair Value | 51,149 | 54,659 | 60,248 | |
Federal Home Loan Bank Overnight Advances, Fair Value Disclosure | 83,000 | 234,000 | 136,000 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 29,943 | 44,652 | 44,495 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 1,187 | 570 | 540 | |
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 | 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 | 2,218,244 | 2,114,372 | 1,971,756 | |
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 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018branch_office | |
Leases [Abstract] | |
Number of branch offices | 5 |
Leases - Quantitative Lease Dat
Leases - Quantitative Lease Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finance Lease Amounts: | ||||
Right-of-use Assets | $ 5,226 | $ 5,226 | ||
Lease Liabilities | 5,270 | 5,270 | ||
Operating Lease Amounts: | ||||
Right-of-use Assets | 5,859 | 5,859 | ||
Lease Liabilities | 5,918 | 5,918 | ||
Finance Lease Cost: | ||||
Amortization of Right-of-use assets | 44 | |||
Interest on Lease Liabilities | $ 28 | $ 0 | 43 | $ 0 |
Operating Lease Cost | 366 | |||
Short-term Lease Cost | 56 | |||
Variable Lease Cost | 95 | |||
Total Lease Cost | 604 | |||
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: | ||||
Operating Outgoing Cash Flows From Finance Leases | 43 | |||
Operating Outgoing Cash Flows From Operating Leases | 355 | |||
Financing Outgoing Cash Flows From Finance Leases | 12 | $ 0 | ||
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities | 5,271 | |||
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities | $ 6,147 | |||
Weighted-average Remaining Lease Term—Finance Leases (Yrs.) | 31 years 3 months 15 days | 31 years 3 months 15 days | ||
Weighted-average Remaining Lease Term—Operating Leases (Yrs.) | 14 years 26 days | 14 years 26 days | ||
Weighted-average Discount Rate—Finance Leases % | 3.75% | 3.75% | ||
Weighted-average Discount Rate—Operating Leases % | 3.47% | 3.47% |
Leases - Future Lease Payments
Leases - Future Lease Payments on Finance and Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 | $ 811 | |
2020 | 735 | |
2021 | 604 | |
2022 | 529 | |
2023 | 530 | |
Thereafter | 4,373 | |
Total | 7,582 | |
Less: Net Present Value Adjustment | 1,664 | |
Lease Liabilities | 5,918 | |
Financing Leases | ||
2019 | 186 | |
2020 | 233 | |
2021 | 242 | |
2022 | 243 | |
2023 | 244 | |
Thereafter | 8,323 | |
Total | 9,471 | |
Less: Net Present Value Adjustment | 4,201 | |
Lease Liabilities | $ 5,270 | |
Operating Leases | ||
2019 | $ 857 | |
2020 | 626 | |
2021 | 497 | |
2022 | 357 | |
2023 | 286 | |
2024 and beyond | 2,776 | |
Total Minimum Lease Payments | $ 5,399 |
Uncategorized Items - arow-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (102,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (102,000) |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (331,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 331,000 |