Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
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 | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,983,674 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
ASSETS | |||
Cash and Due From Banks | $ 32,525 | $ 47,035 | $ 36,198 |
Interest-Bearing Deposits at Banks | 106,004 | 23,186 | 25,031 |
Investment Securities: | |||
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 |
Held-to-Maturity (Approximate Fair Value of $242,804 at March 31, 2020; $249,618 at December 31, 2019; and $280,414 at March 31, 2019) | 238,520 | 245,065 | 279,400 |
Equity Securities | 1,689 | 2,063 | 1,850 |
FHLB and Federal Reserve Bank Stock | 5,379 | 10,317 | 7,878 |
Loans | 2,414,193 | 2,386,120 | 2,235,208 |
Allowance for Loan Losses | (23,637) | (21,187) | (20,373) |
Net Loans | 2,390,556 | 2,364,933 | 2,214,835 |
Premises and Equipment, Net | 40,987 | 40,629 | 34,949 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 1,640 | 1,661 | 1,777 |
Other Assets | 73,973 | 70,179 | 62,280 |
Total Assets | 3,291,332 | 3,184,275 | 2,984,883 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 489,151 | 484,944 | 453,089 |
Interest-Bearing Checking Accounts | 793,425 | 689,221 | 823,301 |
Savings Deposits | 1,146,683 | 1,046,568 | 866,861 |
Time Deposits over $250,000 | 135,854 | 123,968 | 83,834 |
Other Time Deposits | 245,892 | 271,353 | 263,012 |
Total Deposits | 2,811,005 | 2,616,054 | 2,490,097 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 57,909 | 51,099 | 58,407 |
Federal Home Loan Bank Overnight Advances | 0 | 130,000 | 74,500 |
Federal Home Loan Bank Term Advances | 50,000 | 30,000 | 35,000 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 |
Finance Leases | 5,249 | 5,254 | 2,946 |
Other Liabilities | 37,771 | 30,140 | 27,324 |
Total Liabilities | 2,981,934 | 2,882,547 | 2,708,274 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at March 31, 2020 and December 31, 2019; $5 Par Value and 1,000,000 Shares Authorized at March 31, 2019 | 0 | 0 | 0 |
Common Stock, $1 Par Value; 30,000,000 Shares Authorized at March 31, 2020 and December 31, 2019 and 20,000,000 Shares Authorized at March 31, 2019 (19,606,449 Shares Issued at March 31, 2020 and December 31, 2019 and 19,035,565 at March 31, 2019) | 19,606 | 19,606 | 19,035 |
Additional Paid-in Capital | 336,021 | 335,355 | 315,262 |
Retained Earnings | 37,441 | 33,218 | 34,231 |
Unallocated ESOP Shares (None at March 31, 2020 and December 31, 2019 and 5,501 Shares at March 31, 2019) | 0 | 0 | (100) |
Accumulated Other Comprehensive Loss | (2,412) | (6,357) | (11,567) |
Treasury Stock, at Cost (4,624,348 Shares at March 31, 2020; 4,608,258 Shares at December 31, 2019 and 4,556,083 Shares at March 31, 2019) | (81,258) | (80,094) | (80,252) |
Total Stockholders’ Equity | 309,398 | 301,728 | 276,609 |
Total Liabilities and Stockholders’ Equity | $ 3,291,332 | $ 3,184,275 | $ 2,984,883 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Held-to-maturity securities, at fair value | $ 242,804 | $ 249,618 | $ 280,414 |
Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 | $ 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 | 30,000,000 | 20,000,000 |
Common Stock, shares issued (in shares) | 19,606,449 | 19,606,449 | 19,035,565 |
Unallocated ESOP Shares (in shares) | 0 | 0 | 5,501 |
Treasury Stock (in shares) | 4,624,348 | 4,608,258 | 4,556,083 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | ||||
INTEREST AND DIVIDEND INCOME | |||||
Interest and Fees on Loans | $ 24,874 | $ 22,403 | |||
Interest on Deposits at Banks | 124 | 195 | |||
Interest and Dividends on Investment Securities: | |||||
Fully Taxable | 2,193 | 2,369 | |||
Exempt from Federal Taxes | 1,035 | 1,246 | |||
Total Interest and Dividend Income | 28,226 | 26,213 | |||
INTEREST EXPENSE | |||||
Interest-Bearing Checking Accounts | 487 | 482 | |||
Savings Deposits | 2,471 | 1,601 | |||
Time Deposits over $250,000 | 533 | 396 | |||
Other Time Deposits | 1,000 | 713 | |||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 22 | 22 | |||
Federal Home Loan Bank Advances | 429 | 1,594 | |||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 228 | 269 | |||
Interest on Financing Leases | 50 | 15 | |||
Total Interest Expense | 5,220 | 5,092 | |||
NET INTEREST INCOME | 23,006 | 21,121 | |||
Provision for Loan Losses | 2,772 | 472 | |||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 20,234 | 20,649 | |||
NONINTEREST INCOME | |||||
Insurance Commissions | 1,632 | 1,719 | |||
Net (Loss) Gain on Securities | (374) | 76 | |||
Net Gain on Sales of Loans | 213 | 104 | |||
Other Operating Income | 1,559 | 479 | |||
Total Noninterest Income | 7,694 | 6,887 | |||
NONINTEREST EXPENSE | |||||
Salaries and Employee Benefits | 10,383 | 9,319 | |||
Occupancy Expenses, Net | 1,449 | 1,420 | |||
Technology and Equipment Expense | 3,352 | 3,141 | |||
FDIC Assessments | 219 | 212 | |||
Other Operating Expense | 2,351 | 2,560 | |||
Total Noninterest Expense | 17,754 | 16,652 | |||
INCOME BEFORE PROVISION FOR INCOME TAXES | 10,174 | 10,884 | |||
Provision for Income Taxes | 2,047 | 2,150 | |||
NET INCOME | $ 8,127 | $ 8,734 | |||
Average Shares Outstanding: | |||||
Basic (in shares) | 14,996 | [1] | 14,903 | [2] | |
Diluted (in shares) | [2] | 15,026 | 14,956 | ||
Per Common Share: | |||||
Basic Earnings (in dollars per share) | [1] | $ 0.54 | $ 0.59 | ||
Diluted Earnings (in dollars per share) | [1] | $ 0.54 | $ 0.58 | ||
Fiduciary and Trust | |||||
NONINTEREST INCOME | |||||
Revenue from Contract with Customer | $ 2,213 | $ 2,107 | |||
Deposit Account | |||||
NONINTEREST INCOME | |||||
Revenue from Contract with Customer | $ 2,451 | $ 2,402 | |||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2019 3% stock dividend. | ||||
[2] | 2019 Share and Per Share Amounts have been restated for the September 27, 2019 3% stock dividend. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) | Sep. 27, 2019 |
Income Statement [Abstract] | |
Stock dividend, percent | 3.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 8,127 | $ 8,734 |
Other Comprehensive Income, Net of Tax: | ||
Net Unrealized Securities Holding Gains Arising During the Period | 4,098 | 2,080 |
Net Unrealized Loss on Cash Flow Hedge Agreements | (219) | 0 |
Amortization of Net Retirement Plan Actuarial Loss | 27 | 121 |
Amortization of Net Retirement Plan Prior Service Cost | 39 | 42 |
Other Comprehensive Income | 3,945 | 2,243 |
Comprehensive Income | $ 12,072 | $ 10,977 |
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, 2018 | $ 269,584 | $ 19,035 | $ 314,533 | $ 29,257 | $ (100) | $ (13,810) | $ (79,331) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 8,734 | 8,734 | ||||||
Other Comprehensive Income (Loss) | 2,243 | 2,243 | ||||||
Cash Dividends Paid | [1] | (3,760) | (3,760) | |||||
Stock Options Exercised, Net | 535 | 249 | 286 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 117 | 76 | 41 | |||||
Shares Issued for Dividend Reinvestment Plans | 453 | 309 | 144 | |||||
Stock-Based Compensation Expense | 95 | 95 | ||||||
Purchases of Treasury Stock | (1,392) | (1,392) | ||||||
Stockholders' equity, ending balance at Mar. 31, 2019 | 276,609 | 19,035 | 315,262 | 34,231 | (100) | (11,567) | (80,252) | |
Stockholders' equity, beginning balance at Dec. 31, 2019 | 301,728 | 19,606 | 335,355 | 33,218 | 0 | (6,357) | (80,094) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 8,127 | 8,127 | ||||||
Other Comprehensive Income (Loss) | 3,945 | 3,945 | ||||||
Cash Dividends Paid | (3,904) | (3,904) | ||||||
Stock Options Exercised, Net | 343 | 199 | 144 | |||||
Shares Issued Under the Employee Stock Purchase Plan | 121 | 84 | 37 | |||||
Shares Issued for Dividend Reinvestment Plans | 442 | 280 | 162 | |||||
Stock-Based Compensation Expense | 103 | 103 | ||||||
Purchases of Treasury Stock | (1,507) | (1,507) | ||||||
Stockholders' equity, ending balance at Mar. 31, 2020 | $ 309,398 | $ 19,606 | $ 336,021 | $ 37,441 | $ 0 | $ (2,412) | $ (81,258) | |
[1] | Cash dividends paid per share have been adjusted for the September 27, 2019 3% stock dividend. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends Paid, per Share (in dollars per share) | $ 0.26 | $ 0.252 |
Exercised (in shares) | 14,282 | 26,135 |
Shares Issued Under Employee Stock Purchase Plan (in shares) | 3,648 | 3,709 |
Shares Issued for Dividend Reinvestment Plans (in shares) | 16,001 | 13,132 |
Purchase of Treasury Stock (in shares) | 50,021 | 40,852 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 8,127 | $ 8,734 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Loan Losses | 2,772 | 472 |
Depreciation and Amortization | 1,597 | 1,309 |
Net Loss (Gain) on Securities Transactions | 374 | (76) |
Loans Originated and Held-for-Sale | (9,322) | (4,223) |
Proceeds from the Sale of Loans Held-for-Sale | 7,975 | 3,718 |
Net Gain on the Sale of Loans | (213) | (104) |
Net (Gain) Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | (91) | 130 |
Contributions to Retirement Benefit Plans | (195) | (153) |
Deferred Income Tax Benefit | (873) | (297) |
Stock-Based Compensation Expense | 103 | 95 |
Tax Benefit from Exercise of Stock Options | 28 | 78 |
Net Increase in Other Assets | (5,719) | (1,565) |
Net Increase in Other Liabilities | 8,563 | 2,613 |
Net Cash Provided By Operating Activities | 13,126 | 10,731 |
Cash Flows from Investing Activities: | ||
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 17,444 | 21,261 |
Purchases of Securities Available-for-Sale | (33,201) | 0 |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 7,075 | 5,319 |
Purchases of Securities Held-to-Maturity | (717) | (1,457) |
Net Increase in Loans | (27,317) | (39,545) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 781 | 442 |
Purchase of Premises and Equipment | (1,072) | (2,099) |
Net Decrease in Other Investments | 4,938 | 7,628 |
Net Cash Used By Investing Activities | (32,069) | (8,451) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 194,951 | 144,513 |
Net Decrease in Short-Term Federal Home Loan Bank Borrowings | (130,000) | (159,500) |
Net Increase in Short-Term Borrowings | 6,810 | 3,748 |
Finance Lease Payments | (5) | (4) |
Federal Home Loan Bank Advances | 40,000 | 0 |
Repayments of Federal Home Loan Bank Term Advances | (20,000) | (10,000) |
Purchase of Treasury Stock | (1,507) | (1,392) |
Stock Options Exercised, Net | 343 | 535 |
Shares Issued Under the Employee Stock Purchase Plan | 121 | 117 |
Shares Issued for Dividend Reinvestment Plans | 442 | 453 |
Cash Dividends Paid | (3,904) | (3,760) |
Net Cash Provided (Used) By Financing Activities | 87,251 | (25,290) |
Net Increase (Decrease) in Cash and Cash Equivalents | 68,308 | (23,010) |
Cash and Cash Equivalents at Beginning of Period | 70,221 | 84,239 |
Cash and Cash Equivalents at End of Period | 138,529 | 61,229 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 5,264 | 4,924 |
Income Taxes | 344 | 311 |
Non-cash Investing and Financing Activity: | ||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 371 | $ 728 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , December 31, 2019 and March 31, 2019 ; the results of operations for the three-month periods ended March 31, 2020 and 2019 ; the consolidated statements of comprehensive income for the three-month periods ended March 31, 2020 and 2019 ; the changes in stockholders' equity for the three -month periods ended March 31, 2020 and 2019 ; and the cash flows for the three -month periods ended March 31, 2020 and 2019 . 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 (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Due to the uncertainty regarding the impact of the COVID-19 pandemic, management utilized estimates and assumptions in its evaluation of potential impairment of the Company's right-of-use lease assets, goodwill and intangible assets. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, pension and other post-retirement 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, 2019 included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2019 . The following accounting standards have been adopted in the first three months of 2020: In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13 "Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" as part of its disclosure framework, and pursuant to which FASB has eliminated, amended and added disclosure requirements for fair value measurements. For Arrow, the standard became effective, on a prospective basis, on January 1, 2020. The adoption of this change in fair value disclosure did not have a material impact on its financial position or the results of operations in the period subsequent to its adoption. In August 2018, the FASB issued Accounting Standards Update (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 currently often expensed under US GAAP. For Arrow, the standard was adopted, on a prospective basis, on January 1, 2020. The adoption of this standard did not have a material impact on its financial position or the results of operations in the period subsequent to its adoption. In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ("ASU 2018-17"). ASU 2018-17 provides that indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. For Arrow, the standard was effective on January 1, 2020 and the adoption of this standard did not have a material impact on its financial position or the results of operations in the period subsequent to its adoption. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. Companies can apply the ASU immediately. However, the guidance will only be available for a limited time (generally through December 31, 2022), and provides optional relief for contract modifications, hedge accounting and Held-to-maturity debt securities. For Arrow, this standard was effective January 1, 2020 and can be applied prospectively beginning January 1, 2020 for contract modifications and hedging relationships. The one-time election to sell and/or transfer securities classified as Held-to-maturity may be made at any point after March 12, 2020. Arrow is evaluating the impact of this standard as it will provide relief for contracts currently tied to LIBOR and hedge accounting relationships. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) The following table is the schedule of Available-For-Sale Securities at March 31, 2020 , December 31, 2019 and March 31, 2019 : 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 March 31, 2020 Available-For-Sale Securities, at Amortized Cost $ 5,002 $ 723 $ 365,333 $ 1,000 $ 372,058 Gross Unrealized Gains 179 — 7,484 — 7,663 Gross Unrealized Losses — — (1,335 ) (200 ) (1,535 ) Available-For-Sale Securities, at Fair Value 5,181 723 371,482 800 378,186 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 273,124 Maturities of Debt Securities, at Amortized Cost: Within One Year $ — $ 26 $ 14,201 $ — $ 14,227 From 1 - 5 Years 5,002 257 325,234 — 330,493 From 5 - 10 Years — — 25,898 1,000 26,898 Over 10 Years — 440 — — 440 Maturities of Debt Securities, at Fair Value: Within One Year $ — $ 26 $ 14,616 $ — $ 14,642 From 1 - 5 Years 5,181 257 331,422 — 336,860 From 5 - 10 Years — — 25,444 800 26,244 Over 10 Years — 440 — — 440 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 18,846 $ — $ 18,846 12 Months or Longer — — 59,262 800 60,062 Total $ — $ — $ 78,108 $ 800 $ 78,908 Number of Securities in a Continuous Loss Position — — 27 1 28 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 316 $ — $ 316 12 Months or Longer — — 1,019 200 1,219 Total $ — $ — $ 1,335 $ 200 $ 1,535 Disaggregated Details: US Agency Obligations, 5,002 US Agency Obligations, 5,181 US Government Agency Securities, at Amortized Cost $ 58,089 US Government Agency Securities, at Fair Value 57,091 Government Sponsored Entity Securities, at Amortized Cost 307,244 Government Sponsored Entity 314,391 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, 2019 Available-For-Sale Securities, at Amortized Cost $ 5,002 $ 764 $ 349,944 $ 1,000 $ 356,710 Gross Unrealized Gains 52 — 1,852 — 1,904 Gross Unrealized Losses — — (1,080 ) (200 ) (1,280 ) Available-For-Sale Securities, at Fair Value 5,054 764 350,716 800 357,334 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 164,426 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 52,491 $ — $ 52,491 12 Months or Longer — — 97,164 800 97,964 Total $ — $ — $ 149,655 $ 800 $ 150,455 Number of Securities in a Continuous Loss Position — — 54 1 55 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 317 $ — $ 317 12 Months or Longer — — 763 200 963 Total $ — $ — $ 1,080 $ 200 $ 1,280 Disaggregated Details: US Agency Obligations, 5,002 US Agency Obligations, 5,054 US Government Agency Securities, at Amortized Cost $ 61,102 US Government Agency Securities, at Fair Value 60,616 Government Sponsored Entity Securities, at Amortized Cost 288,842 Government Sponsored Entity 290,100 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 March 31, 2019 Available-For-Sale Securities, at Amortized Cost $ 35,519 $ 1,114 $ 263,347 $ 1,000 $ 300,980 Gross Unrealized Gains — 2 657 — 659 Gross Unrealized Losses (136 ) — (2,491 ) (200 ) (2,827 ) Available-For-Sale Securities, at Fair Value 35,383 1,116 261,513 800 298,812 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 255,028 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 53,131 $ — $ 53,131 12 Months or Longer 35,383 — 155,108 800 191,291 Total $ 35,383 $ — $ 208,239 $ 800 $ 244,422 Number of Securities in a Continuous Loss Position 7 — 80 1 88 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 258 $ — $ 258 12 Months or Longer 136 — 2,233 200 2,569 Total $ 136 $ — $ 2,491 $ 200 $ 2,827 Disaggregated Details: US Agency Obligations, 35,519 US Agency Obligations, 35,383 US Government Agency Securities, at Amortized Cost $ 70,358 US Government Agency Securities, at Fair Value 70,034 Government Sponsored Entity Securities, at Amortized Cost 192,989 Government Sponsored Entity 191,479 The following table is the schedule of Held-To-Maturity Securities at March 31, 2020 , December 31, 2019 and March 31, 2019 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities March 31, 2020 Held-To-Maturity Securities, at Amortized Cost $ 204,148 $ 34,372 $ 238,520 Gross Unrealized Gains 3,104 1,329 4,433 Gross Unrealized Losses (149 ) — (149 ) Held-To-Maturity Securities, at Fair Value 207,103 35,701 242,804 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 231,539 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 16,308 $ 2,857 $ 19,165 From 1 - 5 Years 115,665 31,515 147,180 From 5 - 10 Years 70,585 — 70,585 Over 10 Years 1,590 — 1,590 Maturities of Debt Securities, at Fair Value: Within One Year $ 16,329 $ 2,964 $ 19,293 From 1 - 5 Years 117,119 32,737 149,856 From 5 - 10 Years 72,031 — 72,031 Over 10 Years 1,624 — 1,624 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 5,625 $ — $ 5,625 12 Months or Longer 1,867 — 1,867 Total $ 7,492 $ — $ 7,492 Number of Securities in a Continuous Loss Position 16 — 16 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 16 $ — $ 16 12 Months or Longer 133 — 133 Total $ 149 $ — $ 149 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,594 US Government Agency Securities, at Fair Value 1,655 Government Sponsored Entity Securities, at Amortized Cost 32,778 Government Sponsored Entity 34,046 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities December 31, 2019 Held-To-Maturity Securities, at Amortized Cost $ 208,243 $ 36,822 $ 245,065 Gross Unrealized Gains 4,170 477 4,647 Gross Unrealized Losses (94 ) — (94 ) Held-To-Maturity Securities, at Fair Value 212,319 37,299 249,618 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 237,969 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 1,438 $ — $ 1,438 12 Months or Longer 1,994 — 1,994 Total $ 3,432 $ — $ 3,432 Number of Securities in a Continuous Loss Position 10 — 10 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 85 $ — $ 85 12 Months or Longer 9 — 9 Total $ 94 $ — $ 94 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,703 US Government Agency Securities, at Fair Value 1,720 Government Sponsored Entity Securities, at Amortized Cost 35,119 Government Sponsored Entity 35,579 March 31, 2019 Held-To-Maturity Securities, at Amortized Cost $ 234,454 $ 44,946 $ 279,400 Gross Unrealized Gains 1,695 97 1,792 Gross Unrealized Losses (573 ) (205 ) (778 ) Held-To-Maturity Securities, at Fair Value 235,576 44,838 280,414 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 265,465 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ — 12 Months or Longer 71,450 26,021 97,471 Total $ 71,450 $ 26,021 $ 97,471 Number of Securities in a Continuous Loss Position 193 29 222 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ — 12 Months or Longer 573 205 778 Total $ 573 $ 205 $ 778 March 31, 2019 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,069 US Government Agency Securities, at Fair Value 2,012 Government Sponsored Entity Securities, at Amortized Cost 42,877 Government Sponsored Entity 42,826 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 March 31, 2020 , December 31, 2019 and March 31, 2019 , 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. 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 March 31, 2020 , 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 there is no current intention to sell any of our temporarily impaired securities, and because it is not more likely than not that it 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 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 March 31, 2020 , December 31, 2019 and March 31, 2019 : Equity Securities March 31, 2020 December 31, 2019 March 31, 2019 Equity Securities, at Fair Value $1,689 $2,063 $1,850 The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three -month periods ended March 31, 2020 and 2019 : Quarterly Period Ended: March 31, 2020 March 31, 2019 Net (Loss) Gain on Equity Securities $ (374 ) $ 76 Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period — — Unrealized net (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (374 ) $ 76 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , December 31, 2019 and March 31, 2019 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $1,905 , $215 and $201 as of March 31, 2020 , December 31, 2019 and March 31, 2019 , respectively, are included in the residential real estate balances for current loans. Schedule of Past Due Loans by Loan Category Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Loans Past Due 30-59 Days $ 173 $ 461 $ 5,636 $ 1,630 $ 7,900 Loans Past Due 60-89 Days 70 110 1,451 212 1,843 Loans Past Due 90 or more Days 8 911 549 1,525 2,993 Total Loans Past Due 251 1,482 7,636 3,367 12,736 Current Loans 146,849 524,648 817,073 912,887 2,401,457 Total Loans $ 147,100 $ 526,130 $ 824,709 $ 916,254 $ 2,414,193 Loans 90 or More Days Past Due and Still Accruing Interest $ 5 $ 238 $ 93 $ 101 $ 437 Nonaccrual Loans 63 1,445 715 2,720 4,943 December 31, 2019 Loans Past Due 30-59 Days $ 150 $ — $ 5,670 $ 152 $ 5,972 Loans Past Due 60-89 Days 42 266 2,700 2,027 5,035 Loans Past Due 90 or more Days 21 326 445 1,807 2,599 Total Loans Past Due 213 592 8,815 3,986 13,606 Current Loans 150,447 509,949 802,383 909,735 2,372,514 Total Loans $ 150,660 $ 510,541 $ 811,198 $ 913,721 $ 2,386,120 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 253 $ 253 Nonaccrual Loans 81 326 663 2,935 4,005 March 31, 2019 Loans Past Due 30-59 Days $ 168 $ 208 $ 4,758 $ 1,345 $ 6,479 Loans Past Due 60-89 Days — — 1,387 207 1,594 Loans Past Due 90 or more Days 17 108 369 1,610 2,104 Total Loans Past Due 185 316 6,514 3,162 10,177 Current Loans 133,091 493,071 740,285 858,584 2,225,031 Total Loans $ 133,276 $ 493,387 $ 746,799 $ 861,746 $ 2,235,208 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 64 $ 64 Nonaccrual Loans 415 248 588 3,892 5,143 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 often made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are typically secured by first liens on the real estate, which may include apartments, commercial structures, housing businesses, healthcare facilities, and both owner- and non-owner-occupied facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings, and are generally originated in amounts of no more than 80% of the appraised value of the property. However, the Company also offers commercial construction and land development loans to finance projects. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also typically secured by first liens on the real estate, which may include apartments, commercial structures, housing businesses, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete project. Consumer Loans - 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 indirect consumer 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. The Company also offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. Several loans are unsecured, which carry a higher risk of loss. Residential - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. The Company originates fixed-rate and adjustable-rate one-to-four-family residential real estate loans for construction, the purchase of real estate 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 variable rate 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: December 31, 2019 $ 1,386 $ 5,830 $ 9,408 $ 4,563 $ 21,187 Charge-offs (14 ) — (467 ) — (481 ) Recoveries — — 159 — 159 Provision 267 1,235 904 366 2,772 March 31, 2020 $ 1,639 $ 7,065 $ 10,004 $ 4,929 $ 23,637 December 31, 2018 $ 1,218 $ 5,644 $ 8,882 $ 4,452 $ 20,196 Charge-offs (1 ) (29 ) (418 ) (14 ) (462 ) Recoveries — — 167 — 167 Provision 33 (26 ) 778 (313 ) 472 March 31, 2019 $ 1,250 $ 5,589 $ 9,409 $ 4,125 $ 20,373 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 4 $ — $ — $ 37 $ 41 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,635 7,065 10,004 4,892 23,596 Ending Loan Balance - Individually Evaluated for Impairment 34 1,137 111 953 2,235 Ending Loan Balance - Collectively Evaluated for Impairment $ 147,066 $ 524,993 $ 824,598 $ 915,301 $ 2,411,958 December 31, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 5 $ — $ — $ 42 $ 47 Allowance for creditlosses - Loans Collectively Evaluated for Impairment 1,381 5,830 9,408 4,521 21,140 Ending Loan Balance - Individually Evaluated for Impairment 35 — 107 959 1,101 Ending Loan Balance - Collectively Evaluated for Impairment $ 150,625 $ 510,541 $ 811,091 $ 912,762 $ 2,385,019 March 31, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ — $ — Allowance for credit losses - Loans Collectively Evaluated for Impairment 1,250 5,589 9,409 4,125 20,373 Ending Loan Balance - Individually Evaluated for Impairment 40 387 101 2,417 2,945 Ending Loan Balance - Collectively Evaluated for Impairment $ 133,236 $ 493,000 $ 746,698 $ 859,329 $ 2,232,263 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. The Company uses a two-step process to determine the provision for loan losses and the amount of the allowance for loan losses. An evaluation of impaired loans is performed on a quarterly basis. Impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. Specific reserves on individually identified impaired loans that are not collateral dependent are measured based on the present value of expected future cash flows discounted at the original effective interest rate of each loan. For loans that are collateral dependent, impairment is measured based on the fair value of the collateral less estimated selling costs, and such impaired amounts are generally charged off. In general, Arrow's impaired loans are collateral dependent impaired loans that have limited exposure or require limited specific reserves because of the amount of collateral support with respect to these loans. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured. In these cases, interest is recognized on a cash basis. The remainder of the portfolio is evaluated on a pooled basis, as described below. For each homogeneous loan pool, a total loss factor is estimated based on the historical net loss rates adjusted for applicable qualitative factors. The total loss factors assigned to each loan category are updated on a quarterly basis. For the commercial, commercial construction and commercial real estate categories, the loan categories are further segregated by credit risk profile (pools of loans graded pass, special mention and accruing substandard). Additional description of the credit risk classifications is detailed in the Credit Quality Indicators section of this note. The historical net loss rate is determined for each loan category using a trailing three-year net charge-off average. While historical net loss experience provides a reasonable starting point for analysis, historical net losses, or even recent trends in net losses, do not by themselves form a sufficient basis to determine the appropriate level of the allowance for loan losses. Therefore, historical net loss factors are considered and adjusted 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 March 31, 2020 , December 31, 2019 and March 31, 2019 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 140,218 $ 497,243 $ 637,461 Special Mention 28 255 283 Substandard 6,854 28,632 35,486 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 823,901 $ 913,433 $ 1,737,334 Nonperforming 808 2,821 3,629 December 31, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 144,283 $ 484,267 $ 628,550 Special Mention 32 263 295 Substandard 6,345 26,011 32,356 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 810,535 $ 910,533 $ 1,721,068 Nonperforming 663 3,188 3,851 March 31, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 125,918 $ 465,216 $ 591,134 Special Mention 133 2,268 2,401 Substandard 7,225 25,903 33,128 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 746,211 $ 857,790 $ 1,604,001 Nonperforming 588 3,956 4,544 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, an internally developed system of five credit quality indicators is used to rate the credit worthiness of each commercial loan defined as follows: 1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt. Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified; 2) Special Mention - Loans in this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Loans which might be assigned this credit quality indicator include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions; 3) Substandard - Loans classified as “substandard” are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any. Loans in this category have well defined weaknesses that jeopardize the repayment. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. “Substandard” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard; 4) Doubtful - Loans classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable. Although possibility of loss is extremely high, classification of these loans as “loss” has been deferred due to specific pending factors or events which may strengthen the value (e.g. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc). Loans classified as “doubtful” need to be placed on non-accrual; and 5) Loss - Loans classified as “loss” are considered uncollectible with collateral of such little value that their continuance as bankable assets is not warranted. As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for loan losses. Commercial loans are generally evaluated on an annual basis depending on the size and complexity of the loan relationship, unless the credit related quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly. The credit quality indicator is one of the factors used in assessing the level of incurred risk of loss in our commercial related loan portfolios. Impaired Loans The following table presents information on impaired loans as of March 31, 2020 , December 31, 2019 and March 31, 2019 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 March 31, 2020 Recorded Investment: With No Related Allowance $ — $ 1,137 $ 112 $ 697 $ 1,946 With a Related Allowance 33 — — 256 289 Unpaid Principal Balance: With No Related Allowance — 1,137 111 697 1,945 With a Related Allowance 34 — — 256 290 December 31, 2019 Recorded Investment: With No Related Allowance $ — $ — $ 108 $ 699 $ 807 With a Related Allowance 34 — — 260 294 Unpaid Principal Balance: With No Related Allowance — — 107 699 806 With a Related Allowance 35 — — 260 295 March 31, 2019 Recorded Investment: With No Related Allowance $ 38 $ 389 $ 101 $ 2,417 $ 2,945 With a Related Allowance — — — — — Unpaid Principal Balance: With No Related Allowance 424 2 101 2,416 $ 2,943 With a Related Allowance — — — — — For the Quarter Ended: March 31, 2020 Average Recorded Balance: With No Related Allowance $ — $ 569 $ 110 $ 698 $ 1,377 With a Related Allowance 34 — — 258 292 Interest Income Recognized: With No Related Allowance — 10 — — 10 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — March 31, 2019 Average Recorded Balance: With No Related Allowance $ 234 $ 591 $ 101 $ 2,011 $ 2,937 With a Related Allowance — — — 147 147 Interest Income Recognized: With No Related Allowance — — — — — With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — At March 31, 2020 , December 31, 2019 and March 31, 2019 , 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 interest income was recognized 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: March 31, 2020 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 16 $ — $ 16 Post-Modification Outstanding Recorded Investment — — 16 — 16 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — March 31, 2019 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 13 $ — $ 13 Post-Modification Outstanding Recorded Investment — — 13 — 13 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — In general, prior to the COVID-19 pandemic, 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 March 31, 2020 . In accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, if a short-term loan modification (e.g. six months) is made for a borrower as the result of the COVID-19 pandemic, and who was current on contractual payments as of December 31, 2019, this modification is not considered a troubled debt restructuring (TDR). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (In Thousands) The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of March 31, 2020 , December 31, 2019 and March 31, 2019 : Commitments to Extend Credit and Letters of Credit March 31, 2020 December 31, 2019 March 31, 2019 Notional Amount: Commitments to Extend Credit $ 376,519 $ 349,718 $ 310,749 Standby Letters of Credit 3,301 3,129 4,431 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 29 31 20 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 March 31, 2020 , December 31, 2019 and March 31, 2019 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 March 31, 2020 , December 31, 2019 and March 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 -month periods ended March 31, 2020 and 2019 : Schedule of Comprehensive Income Three Months Ended March 31, Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount 2020 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 5,504 $ (1,406 ) 4,098 Net Unrealized Losses on Cash Flow Swap (294 ) 75 (219 ) Amortization of Net Retirement Plan Actuarial Loss 36 (9 ) 27 Amortization of Net Retirement Plan Prior Service Cost 54 (15 ) 39 Other Comprehensive Income $ 5,300 $ (1,355 ) $ 3,945 2019 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 2,788 $ (708 ) 2,080 Amortization of Net Retirement Plan Actuarial Loss 163 (42 ) 121 Amortization of Net Retirement Plan Prior Service Cost 56 (14 ) 42 Other Comprehensive Income $ 3,007 $ (764 ) $ 2,243 The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Gains and Losses on Available-for-Sale Securities Unrealized Loss on Cash Flow Swap Defined Benefit Plan Items Total Net Actuarial Gain (Loss) Net Prior Service (Cost) Credit For the Quarter-To-Date periods ended: December 31, 2019 $ 465 $ — $ (5,847 ) $ (975 ) $ (6,357 ) Other comprehensive income or loss before reclassifications 4,098 (219 ) — — 3,879 Amounts reclassified from accumulated other comprehensive income — — 27 39 66 Net current-period other comprehensive income 4,098 (219 ) 27 39 3,945 March 31, 2020 $ 4,563 $ (219 ) $ (5,820 ) $ (936 ) $ (2,412 ) December 31, 2018 $ (3,697 ) $ (8,971 ) $ (1,142 ) $ (13,810 ) Other comprehensive income or loss before reclassifications 2,080 — — 2,080 Amounts reclassified from accumulated other comprehensive income — 121 42 163 Net current-period other comprehensive income 2,080 121 42 2,243 March 31, 2019 $ (1,617 ) $ (8,850 ) $ (1,100 ) $ (11,567 ) (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: March 31, 2020 Amortization of defined benefit pension items: Prior-service costs $ (54 ) (1) Salaries and Employee Benefits Actuarial loss (36 ) (1) Salaries and Employee Benefits (90 ) Total before Tax 24 Provision for Income Taxes $ (66 ) Net of Tax Total reclassifications for the period $ (66 ) Net of Tax March 31, 2019 Amortization of defined benefit pension items: Prior-service costs $ (56 ) (1) Salaries and Employee Benefits Actuarial loss (163 ) (1) Salaries and Employee Benefits (219 ) Total before Tax 56 Provision for Income Taxes $ (163 ) Net of Tax Total reclassifications for the period $ (163 ) 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 | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 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 March 31, 2020 . Shares Weighted Average Exercise Price Outstanding at January 1, 2020 241,242 $ 27.58 Granted 50,800 35.28 Exercised (14,282 ) 24.05 Forfeited (2,752 ) 29.65 Outstanding at March 31, 2020 275,008 29.17 Vested at Period-End 155,195 26.23 Expected to Vest 119,813 32.97 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 4.99 Fair Value Assumptions: Dividend Yield 2.90 % Expected Volatility 20.25 % Risk Free Interest Rate 1.53 % Expected Lives (in years) 6.68 The following table presents information on the amounts expensed related to stock options for the periods ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 2019 Amount expensed $ 76 $ 79 Restricted Stock Units - The Company grants restricted stock units which gives the recipient the right to receive shares of Company stock upon vesting. The fair value of each restricted stock unit is the market value of Company stock on the date of grant. 100% of the restricted stock unit awards vest three years from the grant date. Once vested, the restricted stock units become vested units and are no longer forfeitable. Vested units settle upon retirement of the recipient. Unvested restricted stock unit awards will generally be forfeited if the recipient ceases to be employed by the Company, with limited exceptions. The following table summarizes information about restricted stock unit activity for the periods ended March 31, 2020 and 2019 . Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2020 7,496 $ 31.18 Granted 3,827 35.28 Non-vested at March 31, 2020 11,323 32.57 Non-vested at January 1, 2019 3,478 31.62 Granted 4,018 30.79 Non-vested at March 31, 2019 7,496 31.18 The following table presents information on the amounts expensed related to restricted stock units for the periods ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 2019 Amount expensed $ 27 $ 16 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 ESOP, pursuant to which 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, which were fully repaid as of December 31, 2019, required annual payments of principal and interest through 2019. As the debt was repaid, shares were 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 were reported as unallocated ESOP shares in stockholders' equity. As shares were released from collateral, Arrow reported compensation expense equal to the current average market price of the shares, and the shares became outstanding for earnings per share computations. |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
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 with a minimum interest credit of 3%. The service credits under the cash balance plan are equal to 6.0% of eligible salaries for employees who become participants on or after January 1, 2003. For employees in the plan prior to January 1, 2003, the service credits are scaled based on the age of the participant, and range from 6.0% to 12.0% . The funding policy is to contribute up to the maximum amount that can be deducted for federal income tax purposes and to make all payments required under The Employee Retirement Income Security Act ( ERISA ). Arrow also maintains a supplemental non-qualified unfunded retirement plan to provide eligible employees of Arrow and its subsidiaries with benefits in excess of qualified plan limits imposed by federal tax law. Arrow has multiple non-pension postretirement benefit plans. The health care, dental and life insurance plans are contributory, with participants’ contributions adjusted annually. Arrow’s policy is to fund the cost of postretirement benefits based on the current cost of the underlying policies. However, the health care plan provision 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, 2019, Arrow updated its mortality assumption to the Pri-2012 mortality tables for employees, healthy annuitants and contingent survivors, adjusted for mortality improvements with the Scale MP-2019 mortality improvement scale on a generational basis to reflect newly published mortality tables. The Pension Plan uses the sex-distinct amount-weighted tables, the Select Executive Retirement Plan uses the sex-distinct white collar amount-weighted tables, and the Postretirement Benefit Plan uses the sex-distinct headcount-weighted tables. The change in mortality tables resulted in a decrease in liabilities for the Employee's Pension Plan, the Select Executive Retirement Plan and the Postretirement Benefit Plan. The mortality table used in determining the present value of a lump sum payment/annuitizing cash balance accounts was changed to the applicable mortality table for the determination of present values under Internal Revenue Code (IRC) Section 417(e)(3)(B). This table is currently a 50/50 blend of male and female rates from the 2020 sex distinct optional combined mortality tables, as prescribed under IRC Section 430. The change in mortality table was made to reflect the continued improvement in mortality rates and resulted in an increase in liabilities for the Employee's Pension Plan and the Select Executive Retirement Plan. 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, 2020 plan year ( 2.04% , 3.09% , 3.68% ) as of December 31, 2019. This change resulted in a decrease in liability for the Employees' Pension Plan and the Select Executive Retirement Plan. The following tables provide the components of net periodic benefit costs for the three -month periods ended March 31, 2020 and 2019 . Employees' Select Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended March 31, 2020 Service Cost 1 $ 430 $ 103 $ 33 Interest Cost 2 417 54 78 Expected Return on Plan Assets 2 (904 ) — — Amortization of Prior Service Cost 2 16 11 27 Amortization of Net Loss 2 1 33 2 Net Periodic Cost $ (40 ) $ 201 $ 140 Plan Contributions During the Period $ — $ 117 $ 78 For the Three Months Ended March 31, 2019: Service Cost 1 $ 399 $ 97 $ 30 Interest Cost 2 397 52 89 Expected Return on Plan Assets 2 (770 ) — — Amortization of Prior Service Cost 2 17 14 25 Amortization of Net Loss 2 153 27 (17 ) Net Periodic (Benefit) Cost $ 196 $ 190 $ 127 Plan Contributions During the Period $ — $ 116 $ 37 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 A contribution to the qualified pension plan in 2020 was not required, and currently, additional contributions in 2020 are not expected. 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and 2019 . All share and per share amounts have been adjusted for the September 27, 2019 , 3% stock dividend. Earnings Per Share Three Months Ended March 31, 2020 March 31, 2019 Earnings Per Share - Basic: Net Income $ 8,127 $ 8,734 Weighted Average Shares - Basic 14,996 14,903 Earnings Per Share - Basic $ 0.54 $ 0.59 Earnings Per Share - Diluted: Net Income $ 8,127 $ 8,734 Weighted Average Shares - Basic 14,996 14,903 Dilutive Average Shares Attributable to Stock Options 30 53 Weighted Average Shares - Diluted 15,026 14,956 Earnings Per Share - Diluted $ 0.54 $ 0.58 |
Fair Values
Fair Values | 3 Months Ended |
Mar. 31, 2020 | |
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. There are no nonfinancial assets or liabilities measured at fair value on a recurring basis. The only assets or liabilities that Arrow measured at fair value on a recurring basis at March 31, 2020 , December 31, 2019 and March 31, 2019 were securities available-for-sale, equity securities and derivatives. Arrow held no securities or liabilities for trading on such dates. The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices 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: March 31, 2020 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 5,181 $ — $ 5,181 $ — State and Municipal Obligations 723 — 723 — Mortgage-Backed Securities 371,482 — 371,482 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 378,186 — 378,186 — Equity Securities 1,689 — 1,689 — Total Securities Measured on a Recurring Basis 379,875 — 379,875 — Derivatives, included in other assets 5,191 — 5,191 — Total Measured on a Recurring Basis $ 385,066 $ — $ 385,066 $ — Liabilities: Derivatives, included in other liabilities 5,191 — 5,191 — Total Measured on a Recurring Basis $ 5,191 $ — $ 5,191 $ — December 31, 2019 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 5,054 $ — $ 5,054 $ — State and Municipal Obligations 764 — 764 — Mortgage-Backed Securities 350,716 — 350,716 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 357,334 357,334 Equity Securities 2,063 — 2,063 — Total Securities Measured on a Recurring Basis 359,397 — 359,397 — 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) Derivatives, included in other liabilities 69 — 69 — Total Measured on a Recurring Basis $ 359,466 $ — $ 359,466 $ — Liabilities: Derivatives, included in other liabilities $ 69 $ — $ 69 $ — Total Measured on a Recurring Basis $ 69 $ — $ 69 $ — March 31, 2019 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 35,383 $ — $ 35,383 $ — State and Municipal Obligations 1,116 — 1,116 — Mortgage-Backed Securities 261,513 — 261,513 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 298,812 298,812 Equity Securities 1,850 — 1,850 — Total Securities Measured on a Recurring Basis $ 300,662 $ — $ 300,662 $ — 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: March 31, 2020 Collateral Dependent Impaired Loans $ 582 $ — $ — $ 582 Other Real Estate Owned and Repossessed Assets, Net 942 — — 942 — December 31, 2019 Collateral Dependent Impaired Loans $ 285 $ — $ — $ 285 Other Real Estate Owned and Repossessed Assets, Net 1,261 — — 1,261 (186 ) March 31, 2019 Collateral Dependent Impaired Loans $ 684 $ — $ — $ 684 Other Real Estate Owned and Repossessed Assets, Net 1,445 — — 1,445 (101 ) The fair value of financial instruments is determined under the following hierarchy: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Fair Value Methodology for Assets and Liabilities Measured on a Recurring Basis The fair value of Level 1 securities available-for-sale are based on unadjusted, quoted market prices from exchanges in active markets. The fair value of Level 2 securities available-for-sale are based on an independent bond and equity pricing service for identical assets or significantly similar securities and an independent equity pricing service for equity securities not actively traded. The pricing services use a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. The fair value of Level 2 derivatives is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes. Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis The fair value of collateral dependent 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 at least annually, with no impairment recognized for these assets at March 31, 2020 , December 31, 2019 and March 31, 2019 . Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis The fair value for securities held-to-maturity is determined utilizing an independent bond pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" requires that the fair value for loans must be disclosed using the "exit price" notion which is a reasonable estimate of what another party might pay in an orderly transaction. Fair values for loans are calculated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect auto and other consumer loans. Each loan category is further segmented into fixed and adjustable interest rate terms and by performing and nonperforming categories. The fair value of performing loans is calculated by determining the estimated future cash flow, which is the contractual cash flow adjusted for estimated prepayments. The discount rate is determined by starting with current market yields, and first adjusting for a liquidity premium. This premium is separately determined for each loan type. Then a credit loss component is determined utilizing the credit loss assumptions used in the allowance for 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. The fair value of time deposits is based on the discounted value of contractual cash flows, except that the fair value is limited to the extent that the customer could redeem the certificate after imposition of a premature withdrawal penalty. The discount rates are estimated using the Federal Home Loan Bank of New York ("FHLBNY") yield curve, which is considered representative of Arrow’s time deposit rates. The fair value of all other deposits is equal to the carrying value. The fair value of FHLBNY advances is calculated by the FHLBNY. The carrying amount of FHLBNY and FRB stock approximates fair value. If the stock was redeemed, the Company will receive an amount equal to the par value of the stock. The book value of the outstanding trust preferred securities (Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts) are considered to approximate fair value since the interest rates are variable (indexed to 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 March 31, 2020 Cash and Cash Equivalents $ 138,529 $ 138,529 $ 138,529 $ — $ — Securities Available-for-Sale 378,186 378,186 — 378,186 — Securities Held-to-Maturity 238,520 242,804 — 242,804 — Equity Securities 1,689 1,689 — 1,689 — Federal Home Loan Bank and Federal Reserve Bank Stock 5,379 5,379 — 5,379 — Net Loans 2,390,556 2,368,033 — — 2,368,033 Accrued Interest Receivable 7,856 7,856 — 7,856 — Derivatives, included in other assets 5,191 5,191 5,191 Deposits 2,811,005 2,811,668 — 2,811,668 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 57,909 57,909 — 57,909 — Federal Home Loan Bank Term Advances 50,000 51,194 — 51,194 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,392 1,392 — 1,392 — Derivatives, included in other liabilities 5,191 5,191 — 5,191 — Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 December 31, 2019 Cash and Cash Equivalents $ 70,221 $ 70,221 $ 70,221 $ — $ — Securities Available-for-Sale 357,334 357,334 — 357,334 — Securities Held-to-Maturity 245,065 249,618 — 249,618 — Equity Securities 2,063 2,063 — 2,063 Federal Home Loan Bank and Federal Reserve Bank Stock 10,317 10,317 — 10,317 — Net Loans 2,364,933 2,332,797 — — 2,332,797 Accrued Interest Receivable 7,377 7,377 — 7,377 — Derivatives, included in other assets 69 69 — 69 — Deposits 2,616,054 2,614,170 — 2,614,170 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 51,099 51,099 — 51,099 — Federal Home Loan Bank Overnight Advances 130,000 130,000 — 130,000 — Federal Home Loan Bank Term Advances 30,000 29,993 — 29,993 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,436 1,436 — 1,436 — Derivatives, included in other liabilities 69 69 — 69 — March 31, 2019 Cash and Cash Equivalents $ 61,229 $ 61,229 $ 61,229 $ — $ — Securities Available-for-Sale 298,812 298,812 — 298,812 — Securities Held-to-Maturity 279,400 280,414 — 280,414 — Equity Securities 1,850 1,850 — 1,850 Federal Home Loan Bank and Federal Reserve Bank Stock 7,878 7,878 — 7,878 — Net Loans 2,214,835 2,164,298 — — 2,164,298 Accrued Interest Receivable 8,180 8,180 — 8,180 — Deposits 2,490,097 2,484,479 — 2,484,479 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 58,407 58,407 — 58,407 — Federal Home Loan Bank Overnight Advances 74,500 74,500 — 74,500 — Federal Home Loan Bank Term Advances 35,000 34,805 — 34,805 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 737 737 — 737 — |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
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 as a director on the board of directors of each 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 three months ended March 31, 2020 and March 31, 2019: Three Months Ended Finance Lease Amounts: Classification March 31, 2020 March 31, 2019 Right-of-use Assets Premises and Equipment, Net $ 5,124 $ 2,922 Lease Liabilities Finance Leases 5,249 2,946 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,529 $ 5,587 Lease Liabilities Other Liabilities 5,602 5,639 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 50 $ 15 Operating Outgoing Cash Flows From Operating Leases 158 173 Financing Outgoing Cash Flows From Finance Leases 5 4 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities — 2,939 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities — 5,725 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 29.90 26.91 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 13.70 14.63 Weighted-average Discount Rate—Finance Leases % 3.75 % 3.82 % Weighted-average Discount Rate—Operating Leases % 3.36 % 3.50 % Lease cost information for the Company's leases is as follows: Three Months Ended March 31, 2020 March 31, 2019 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 $ 17 Interest on Lease Liabilities 50 15 Operating Lease Cost 207 173 Short-term Lease Cost 7 33 Variable Lease Cost 55 56 Total Lease Cost $ 363 $ 294 Future Lease Payments at March 31, 2020 are as follows: Operating Leases Financing Leases Twelve Months Ended: 3/31/2021 $ 776 $ 240 3/31/2022 640 243 3/31/2023 563 132 3/31/2024 548 243 3/31/2025 515 252 Thereafter 4,028 8,110 Total Undiscounted Cash Flows $ 7,070 $ 9,220 Less: Net Present Value Adjustment 1,468 3,971 Lease Liability $ 5,602 $ 5,249 |
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 as a director on the board of directors of each 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 three months ended March 31, 2020 and March 31, 2019: Three Months Ended Finance Lease Amounts: Classification March 31, 2020 March 31, 2019 Right-of-use Assets Premises and Equipment, Net $ 5,124 $ 2,922 Lease Liabilities Finance Leases 5,249 2,946 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,529 $ 5,587 Lease Liabilities Other Liabilities 5,602 5,639 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 50 $ 15 Operating Outgoing Cash Flows From Operating Leases 158 173 Financing Outgoing Cash Flows From Finance Leases 5 4 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities — 2,939 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities — 5,725 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 29.90 26.91 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 13.70 14.63 Weighted-average Discount Rate—Finance Leases % 3.75 % 3.82 % Weighted-average Discount Rate—Operating Leases % 3.36 % 3.50 % Lease cost information for the Company's leases is as follows: Three Months Ended March 31, 2020 March 31, 2019 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 $ 17 Interest on Lease Liabilities 50 15 Operating Lease Cost 207 173 Short-term Lease Cost 7 33 Variable Lease Cost 55 56 Total Lease Cost $ 363 $ 294 Future Lease Payments at March 31, 2020 are as follows: Operating Leases Financing Leases Twelve Months Ended: 3/31/2021 $ 776 $ 240 3/31/2022 640 243 3/31/2023 563 132 3/31/2024 548 243 3/31/2025 515 252 Thereafter 4,028 8,110 Total Undiscounted Cash Flows $ 7,070 $ 9,220 Less: Net Present Value Adjustment 1,468 3,971 Lease Liability $ 5,602 $ 5,249 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (In Thousands) Arrow is exposed to certain risks arising from both its business operations and economic conditions. Arrow principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Bank manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative instruments. Specifically, the Bank enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Arrow's derivative financial instruments are used to manage differences in the amount, timing and duration of the Bank’s known or expected cash receipts and its known or expected cash payments principally related to certain fixed rate borrowings. Arrow also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Derivatives Not Designated as Hedging Instruments Arrow enters into interest rate swap agreements with its commercial customers to provide them with a long-term fixed rate, while simultaneously Arrow entered into offsetting interest rate swap agreements with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure. These interest rate swap agreements are not designated as a hedge for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not present any material exposure to the Arrow's consolidated statements of income. The Bank records its interest rate swap agreements at fair value and is presented on a gross basis within other assets and other liabilities on the consolidated balance sheets. Changes in the fair value of assets and liabilities arising from these derivatives are included, net, in other income in the consolidated statement of income. The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of the interest rate swap agreements. Derivatives Not Designated as Hedging Instruments - Interest Rate Swap Agreements March 31, 2020 December 31, 2019 March 31, 2019 Fair value adjustment included in other assets $ 5,191 $ 69 $ — Fair value adjustment included in other liabilities 5,191 69 — Notional amount 121,559 44,531 — Derivatives Designated as Hedging Instruments Arrow has entered into interest rate swaps to synthetically fix the variable rate interest payments associated with $20 million in outstanding subordinated trust securities. These agreements are designated as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest expense in the same period during which the hedge transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Arrow's Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts borrowings. The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income. Derivatives Designated as Hedging Instruments - Cash Flow Hedge Agreements March 31, 2020 December 31, 2019 March 31, 2019 Amount of loss recognized in AOCI $ (294 ) $ — $ — Amount of gain reclassified from AOCI interest expense — — — |
COVID-19 Pandemic
COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2020 | |
Health Care Organizations [Abstract] | |
COVID-19 Pandemic | COVID-19 PANDEMIC The outbreak of the novel coronavirus (COVID-19) pandemic has impacted the global economy, including the banking sector and many industries in which our customers operate, in a variety of significant ways. For further discussion of the impact COVID-19 has had and may in the future have on Arrow and its financial results and operations, please refer to the risk factor included in Item 8.01 of Arrow's Current Report on Form 8-K filed April 24, 2020. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Due to the uncertainty regarding the impact of the COVID-19 pandemic, management utilized estimates and assumptions in its evaluation of potential impairment of the Company's right-of-use lease assets, goodwill and intangible assets. Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, pension and other post-retirement 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-For-Sale | The following table is the schedule of Available-For-Sale Securities at March 31, 2020 , December 31, 2019 and March 31, 2019 : 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 March 31, 2020 Available-For-Sale Securities, at Amortized Cost $ 5,002 $ 723 $ 365,333 $ 1,000 $ 372,058 Gross Unrealized Gains 179 — 7,484 — 7,663 Gross Unrealized Losses — — (1,335 ) (200 ) (1,535 ) Available-For-Sale Securities, at Fair Value 5,181 723 371,482 800 378,186 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 273,124 Maturities of Debt Securities, at Amortized Cost: Within One Year $ — $ 26 $ 14,201 $ — $ 14,227 From 1 - 5 Years 5,002 257 325,234 — 330,493 From 5 - 10 Years — — 25,898 1,000 26,898 Over 10 Years — 440 — — 440 Maturities of Debt Securities, at Fair Value: Within One Year $ — $ 26 $ 14,616 $ — $ 14,642 From 1 - 5 Years 5,181 257 331,422 — 336,860 From 5 - 10 Years — — 25,444 800 26,244 Over 10 Years — 440 — — 440 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 18,846 $ — $ 18,846 12 Months or Longer — — 59,262 800 60,062 Total $ — $ — $ 78,108 $ 800 $ 78,908 Number of Securities in a Continuous Loss Position — — 27 1 28 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 316 $ — $ 316 12 Months or Longer — — 1,019 200 1,219 Total $ — $ — $ 1,335 $ 200 $ 1,535 Disaggregated Details: US Agency Obligations, 5,002 US Agency Obligations, 5,181 US Government Agency Securities, at Amortized Cost $ 58,089 US Government Agency Securities, at Fair Value 57,091 Government Sponsored Entity Securities, at Amortized Cost 307,244 Government Sponsored Entity 314,391 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, 2019 Available-For-Sale Securities, at Amortized Cost $ 5,002 $ 764 $ 349,944 $ 1,000 $ 356,710 Gross Unrealized Gains 52 — 1,852 — 1,904 Gross Unrealized Losses — — (1,080 ) (200 ) (1,280 ) Available-For-Sale Securities, at Fair Value 5,054 764 350,716 800 357,334 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 164,426 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 52,491 $ — $ 52,491 12 Months or Longer — — 97,164 800 97,964 Total $ — $ — $ 149,655 $ 800 $ 150,455 Number of Securities in a Continuous Loss Position — — 54 1 55 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 317 $ — $ 317 12 Months or Longer — — 763 200 963 Total $ — $ — $ 1,080 $ 200 $ 1,280 Disaggregated Details: US Agency Obligations, 5,002 US Agency Obligations, 5,054 US Government Agency Securities, at Amortized Cost $ 61,102 US Government Agency Securities, at Fair Value 60,616 Government Sponsored Entity Securities, at Amortized Cost 288,842 Government Sponsored Entity 290,100 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 March 31, 2019 Available-For-Sale Securities, at Amortized Cost $ 35,519 $ 1,114 $ 263,347 $ 1,000 $ 300,980 Gross Unrealized Gains — 2 657 — 659 Gross Unrealized Losses (136 ) — (2,491 ) (200 ) (2,827 ) Available-For-Sale Securities, at Fair Value 35,383 1,116 261,513 800 298,812 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 255,028 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ 53,131 $ — $ 53,131 12 Months or Longer 35,383 — 155,108 800 191,291 Total $ 35,383 $ — $ 208,239 $ 800 $ 244,422 Number of Securities in a Continuous Loss Position 7 — 80 1 88 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ 258 $ — $ 258 12 Months or Longer 136 — 2,233 200 2,569 Total $ 136 $ — $ 2,491 $ 200 $ 2,827 Disaggregated Details: US Agency Obligations, 35,519 US Agency Obligations, 35,383 US Government Agency Securities, at Amortized Cost $ 70,358 US Government Agency Securities, at Fair Value 70,034 Government Sponsored Entity Securities, at Amortized Cost 192,989 Government Sponsored Entity 191,479 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at March 31, 2020 , December 31, 2019 and March 31, 2019 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities March 31, 2020 Held-To-Maturity Securities, at Amortized Cost $ 204,148 $ 34,372 $ 238,520 Gross Unrealized Gains 3,104 1,329 4,433 Gross Unrealized Losses (149 ) — (149 ) Held-To-Maturity Securities, at Fair Value 207,103 35,701 242,804 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 231,539 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 16,308 $ 2,857 $ 19,165 From 1 - 5 Years 115,665 31,515 147,180 From 5 - 10 Years 70,585 — 70,585 Over 10 Years 1,590 — 1,590 Maturities of Debt Securities, at Fair Value: Within One Year $ 16,329 $ 2,964 $ 19,293 From 1 - 5 Years 117,119 32,737 149,856 From 5 - 10 Years 72,031 — 72,031 Over 10 Years 1,624 — 1,624 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 5,625 $ — $ 5,625 12 Months or Longer 1,867 — 1,867 Total $ 7,492 $ — $ 7,492 Number of Securities in a Continuous Loss Position 16 — 16 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 16 $ — $ 16 12 Months or Longer 133 — 133 Total $ 149 $ — $ 149 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,594 US Government Agency Securities, at Fair Value 1,655 Government Sponsored Entity Securities, at Amortized Cost 32,778 Government Sponsored Entity 34,046 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities December 31, 2019 Held-To-Maturity Securities, at Amortized Cost $ 208,243 $ 36,822 $ 245,065 Gross Unrealized Gains 4,170 477 4,647 Gross Unrealized Losses (94 ) — (94 ) Held-To-Maturity Securities, at Fair Value 212,319 37,299 249,618 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 237,969 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 1,438 $ — $ 1,438 12 Months or Longer 1,994 — 1,994 Total $ 3,432 $ — $ 3,432 Number of Securities in a Continuous Loss Position 10 — 10 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 85 $ — $ 85 12 Months or Longer 9 — 9 Total $ 94 $ — $ 94 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 1,703 US Government Agency Securities, at Fair Value 1,720 Government Sponsored Entity Securities, at Amortized Cost 35,119 Government Sponsored Entity 35,579 March 31, 2019 Held-To-Maturity Securities, at Amortized Cost $ 234,454 $ 44,946 $ 279,400 Gross Unrealized Gains 1,695 97 1,792 Gross Unrealized Losses (573 ) (205 ) (778 ) Held-To-Maturity Securities, at Fair Value 235,576 44,838 280,414 Held-To-Maturity Securities, Pledged as Collateral, at Fair Value 265,465 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ — $ — 12 Months or Longer 71,450 26,021 97,471 Total $ 71,450 $ 26,021 $ 97,471 Number of Securities in a Continuous Loss Position 193 29 222 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities Total Held-To Maturity Securities Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ — $ — 12 Months or Longer 573 205 778 Total $ 573 $ 205 $ 778 March 31, 2019 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,069 US Government Agency Securities, at Fair Value 2,012 Government Sponsored Entity Securities, at Amortized Cost 42,877 Government Sponsored Entity 42,826 |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is the schedule of Equity Securities at March 31, 2020 , December 31, 2019 and March 31, 2019 : Equity Securities March 31, 2020 December 31, 2019 March 31, 2019 Equity Securities, at Fair Value $1,689 $2,063 $1,850 |
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 -month periods ended March 31, 2020 and 2019 : Quarterly Period Ended: March 31, 2020 March 31, 2019 Net (Loss) Gain on Equity Securities $ (374 ) $ 76 Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period — — Unrealized net (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (374 ) $ 76 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Past Due Financing Receivables | The following table presents loan balances outstanding as of March 31, 2020 , December 31, 2019 and March 31, 2019 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $1,905 , $215 and $201 as of March 31, 2020 , December 31, 2019 and March 31, 2019 , respectively, are included in the residential real estate balances for current loans. Schedule of Past Due Loans by Loan Category Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Loans Past Due 30-59 Days $ 173 $ 461 $ 5,636 $ 1,630 $ 7,900 Loans Past Due 60-89 Days 70 110 1,451 212 1,843 Loans Past Due 90 or more Days 8 911 549 1,525 2,993 Total Loans Past Due 251 1,482 7,636 3,367 12,736 Current Loans 146,849 524,648 817,073 912,887 2,401,457 Total Loans $ 147,100 $ 526,130 $ 824,709 $ 916,254 $ 2,414,193 Loans 90 or More Days Past Due and Still Accruing Interest $ 5 $ 238 $ 93 $ 101 $ 437 Nonaccrual Loans 63 1,445 715 2,720 4,943 December 31, 2019 Loans Past Due 30-59 Days $ 150 $ — $ 5,670 $ 152 $ 5,972 Loans Past Due 60-89 Days 42 266 2,700 2,027 5,035 Loans Past Due 90 or more Days 21 326 445 1,807 2,599 Total Loans Past Due 213 592 8,815 3,986 13,606 Current Loans 150,447 509,949 802,383 909,735 2,372,514 Total Loans $ 150,660 $ 510,541 $ 811,198 $ 913,721 $ 2,386,120 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 253 $ 253 Nonaccrual Loans 81 326 663 2,935 4,005 March 31, 2019 Loans Past Due 30-59 Days $ 168 $ 208 $ 4,758 $ 1,345 $ 6,479 Loans Past Due 60-89 Days — — 1,387 207 1,594 Loans Past Due 90 or more Days 17 108 369 1,610 2,104 Total Loans Past Due 185 316 6,514 3,162 10,177 Current Loans 133,091 493,071 740,285 858,584 2,225,031 Total Loans $ 133,276 $ 493,387 $ 746,799 $ 861,746 $ 2,235,208 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 64 $ 64 Nonaccrual Loans 415 248 588 3,892 5,143 |
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: December 31, 2019 $ 1,386 $ 5,830 $ 9,408 $ 4,563 $ 21,187 Charge-offs (14 ) — (467 ) — (481 ) Recoveries — — 159 — 159 Provision 267 1,235 904 366 2,772 March 31, 2020 $ 1,639 $ 7,065 $ 10,004 $ 4,929 $ 23,637 December 31, 2018 $ 1,218 $ 5,644 $ 8,882 $ 4,452 $ 20,196 Charge-offs (1 ) (29 ) (418 ) (14 ) (462 ) Recoveries — — 167 — 167 Provision 33 (26 ) 778 (313 ) 472 March 31, 2019 $ 1,250 $ 5,589 $ 9,409 $ 4,125 $ 20,373 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 4 $ — $ — $ 37 $ 41 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,635 7,065 10,004 4,892 23,596 Ending Loan Balance - Individually Evaluated for Impairment 34 1,137 111 953 2,235 Ending Loan Balance - Collectively Evaluated for Impairment $ 147,066 $ 524,993 $ 824,598 $ 915,301 $ 2,411,958 December 31, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 5 $ — $ — $ 42 $ 47 Allowance for creditlosses - Loans Collectively Evaluated for Impairment 1,381 5,830 9,408 4,521 21,140 Ending Loan Balance - Individually Evaluated for Impairment 35 — 107 959 1,101 Ending Loan Balance - Collectively Evaluated for Impairment $ 150,625 $ 510,541 $ 811,091 $ 912,762 $ 2,385,019 March 31, 2019 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ — $ — Allowance for credit losses - Loans Collectively Evaluated for Impairment 1,250 5,589 9,409 4,125 20,373 Ending Loan Balance - Individually Evaluated for Impairment 40 387 101 2,417 2,945 Ending Loan Balance - Collectively Evaluated for Impairment $ 133,236 $ 493,000 $ 746,698 $ 859,329 $ 2,232,263 |
Financing Receivable Credit Quality Indicators | The following table presents the credit quality indicators by loan category at March 31, 2020 , December 31, 2019 and March 31, 2019 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total March 31, 2020 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 140,218 $ 497,243 $ 637,461 Special Mention 28 255 283 Substandard 6,854 28,632 35,486 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 823,901 $ 913,433 $ 1,737,334 Nonperforming 808 2,821 3,629 December 31, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 144,283 $ 484,267 $ 628,550 Special Mention 32 263 295 Substandard 6,345 26,011 32,356 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 810,535 $ 910,533 $ 1,721,068 Nonperforming 663 3,188 3,851 March 31, 2019 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 125,918 $ 465,216 $ 591,134 Special Mention 133 2,268 2,401 Substandard 7,225 25,903 33,128 Doubtful — — — Credit Risk Profile Based on Payment Activity: Performing $ 746,211 $ 857,790 $ 1,604,001 Nonperforming 588 3,956 4,544 |
Impaired Financing Receivables | The following table presents information on impaired loans as of March 31, 2020 , December 31, 2019 and March 31, 2019 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 March 31, 2020 Recorded Investment: With No Related Allowance $ — $ 1,137 $ 112 $ 697 $ 1,946 With a Related Allowance 33 — — 256 289 Unpaid Principal Balance: With No Related Allowance — 1,137 111 697 1,945 With a Related Allowance 34 — — 256 290 December 31, 2019 Recorded Investment: With No Related Allowance $ — $ — $ 108 $ 699 $ 807 With a Related Allowance 34 — — 260 294 Unpaid Principal Balance: With No Related Allowance — — 107 699 806 With a Related Allowance 35 — — 260 295 March 31, 2019 Recorded Investment: With No Related Allowance $ 38 $ 389 $ 101 $ 2,417 $ 2,945 With a Related Allowance — — — — — Unpaid Principal Balance: With No Related Allowance 424 2 101 2,416 $ 2,943 With a Related Allowance — — — — — For the Quarter Ended: March 31, 2020 Average Recorded Balance: With No Related Allowance $ — $ 569 $ 110 $ 698 $ 1,377 With a Related Allowance 34 — — 258 292 Interest Income Recognized: With No Related Allowance — 10 — — 10 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — March 31, 2019 Average Recorded Balance: With No Related Allowance $ 234 $ 591 $ 101 $ 2,011 $ 2,937 With a Related Allowance — — — 147 147 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: March 31, 2020 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 16 $ — $ 16 Post-Modification Outstanding Recorded Investment — — 16 — 16 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — March 31, 2019 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 13 $ — $ 13 Post-Modification Outstanding Recorded Investment — — 13 — 13 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the notional amount and fair value of Arrow's off-balance sheet commitments to extend credit and commitments under standby letters of credit as of March 31, 2020 , December 31, 2019 and March 31, 2019 : Commitments to Extend Credit and Letters of Credit March 31, 2020 December 31, 2019 March 31, 2019 Notional Amount: Commitments to Extend Credit $ 376,519 $ 349,718 $ 310,749 Standby Letters of Credit 3,301 3,129 4,431 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 29 31 20 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 -month periods ended March 31, 2020 and 2019 : Schedule of Comprehensive Income Three Months Ended March 31, Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount 2020 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 5,504 $ (1,406 ) 4,098 Net Unrealized Losses on Cash Flow Swap (294 ) 75 (219 ) Amortization of Net Retirement Plan Actuarial Loss 36 (9 ) 27 Amortization of Net Retirement Plan Prior Service Cost 54 (15 ) 39 Other Comprehensive Income $ 5,300 $ (1,355 ) $ 3,945 2019 Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period 2,788 $ (708 ) 2,080 Amortization of Net Retirement Plan Actuarial Loss 163 (42 ) 121 Amortization of Net Retirement Plan Prior Service Cost 56 (14 ) 42 Other Comprehensive Income $ 3,007 $ (764 ) $ 2,243 |
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 Gains and Losses on Available-for-Sale Securities Unrealized Loss on Cash Flow Swap Defined Benefit Plan Items Total Net Actuarial Gain (Loss) Net Prior Service (Cost) Credit For the Quarter-To-Date periods ended: December 31, 2019 $ 465 $ — $ (5,847 ) $ (975 ) $ (6,357 ) Other comprehensive income or loss before reclassifications 4,098 (219 ) — — 3,879 Amounts reclassified from accumulated other comprehensive income — — 27 39 66 Net current-period other comprehensive income 4,098 (219 ) 27 39 3,945 March 31, 2020 $ 4,563 $ (219 ) $ (5,820 ) $ (936 ) $ (2,412 ) December 31, 2018 $ (3,697 ) $ (8,971 ) $ (1,142 ) $ (13,810 ) Other comprehensive income or loss before reclassifications 2,080 — — 2,080 Amounts reclassified from accumulated other comprehensive income — 121 42 163 Net current-period other comprehensive income 2,080 121 42 2,243 March 31, 2019 $ (1,617 ) $ (8,850 ) $ (1,100 ) $ (11,567 ) (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: March 31, 2020 Amortization of defined benefit pension items: Prior-service costs $ (54 ) (1) Salaries and Employee Benefits Actuarial loss (36 ) (1) Salaries and Employee Benefits (90 ) Total before Tax 24 Provision for Income Taxes $ (66 ) Net of Tax Total reclassifications for the period $ (66 ) Net of Tax March 31, 2019 Amortization of defined benefit pension items: Prior-service costs $ (56 ) (1) Salaries and Employee Benefits Actuarial loss (163 ) (1) Salaries and Employee Benefits (219 ) Total before Tax 56 Provision for Income Taxes $ (163 ) Net of Tax Total reclassifications for the period $ (163 ) 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 . Shares Weighted Average Exercise Price Outstanding at January 1, 2020 241,242 $ 27.58 Granted 50,800 35.28 Exercised (14,282 ) 24.05 Forfeited (2,752 ) 29.65 Outstanding at March 31, 2020 275,008 29.17 Vested at Period-End 155,195 26.23 Expected to Vest 119,813 32.97 Stock Options Granted Weighted Average Grant Date Information: Fair Value of Options Granted $ 4.99 Fair Value Assumptions: Dividend Yield 2.90 % Expected Volatility 20.25 % Risk Free Interest Rate 1.53 % Expected Lives (in years) 6.68 The following table summarizes information about restricted stock unit activity for the periods ended March 31, 2020 and 2019 . Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested at January 1, 2020 7,496 $ 31.18 Granted 3,827 35.28 Non-vested at March 31, 2020 11,323 32.57 Non-vested at January 1, 2019 3,478 31.62 Granted 4,018 30.79 Non-vested at March 31, 2019 7,496 31.18 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed related to restricted stock units for the periods ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 2019 Amount expensed $ 27 $ 16 The following table presents information on the amounts expensed related to stock options for the periods ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 2019 Amount expensed $ 76 $ 79 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables provide the components of net periodic benefit costs for the three -month periods ended March 31, 2020 and 2019 . Employees' Select Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended March 31, 2020 Service Cost 1 $ 430 $ 103 $ 33 Interest Cost 2 417 54 78 Expected Return on Plan Assets 2 (904 ) — — Amortization of Prior Service Cost 2 16 11 27 Amortization of Net Loss 2 1 33 2 Net Periodic Cost $ (40 ) $ 201 $ 140 Plan Contributions During the Period $ — $ 117 $ 78 For the Three Months Ended March 31, 2019: Service Cost 1 $ 399 $ 97 $ 30 Interest Cost 2 397 52 89 Expected Return on Plan Assets 2 (770 ) — — Amortization of Prior Service Cost 2 17 14 25 Amortization of Net Loss 2 153 27 (17 ) Net Periodic (Benefit) Cost $ 196 $ 190 $ 127 Plan Contributions During the Period $ — $ 116 $ 37 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and 2019 . All share and per share amounts have been adjusted for the September 27, 2019 , 3% stock dividend. Earnings Per Share Three Months Ended March 31, 2020 March 31, 2019 Earnings Per Share - Basic: Net Income $ 8,127 $ 8,734 Weighted Average Shares - Basic 14,996 14,903 Earnings Per Share - Basic $ 0.54 $ 0.59 Earnings Per Share - Diluted: Net Income $ 8,127 $ 8,734 Weighted Average Shares - Basic 14,996 14,903 Dilutive Average Shares Attributable to Stock Options 30 53 Weighted Average Shares - Diluted 15,026 14,956 Earnings Per Share - Diluted $ 0.54 $ 0.58 |
Fair Values (Tables)
Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 5,181 $ — $ 5,181 $ — State and Municipal Obligations 723 — 723 — Mortgage-Backed Securities 371,482 — 371,482 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 378,186 — 378,186 — Equity Securities 1,689 — 1,689 — Total Securities Measured on a Recurring Basis 379,875 — 379,875 — Derivatives, included in other assets 5,191 — 5,191 — Total Measured on a Recurring Basis $ 385,066 $ — $ 385,066 $ — Liabilities: Derivatives, included in other liabilities 5,191 — 5,191 — Total Measured on a Recurring Basis $ 5,191 $ — $ 5,191 $ — December 31, 2019 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 5,054 $ — $ 5,054 $ — State and Municipal Obligations 764 — 764 — Mortgage-Backed Securities 350,716 — 350,716 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 357,334 357,334 Equity Securities 2,063 — 2,063 — Total Securities Measured on a Recurring Basis 359,397 — 359,397 — 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) Derivatives, included in other liabilities 69 — 69 — Total Measured on a Recurring Basis $ 359,466 $ — $ 359,466 $ — Liabilities: Derivatives, included in other liabilities $ 69 $ — $ 69 $ — Total Measured on a Recurring Basis $ 69 $ — $ 69 $ — March 31, 2019 Assets: Securities Available-for Sale: U.S. Government & Agency Obligations $ 35,383 $ — $ 35,383 $ — State and Municipal Obligations 1,116 — 1,116 — Mortgage-Backed Securities 261,513 — 261,513 — Corporate and Other Debt Securities 800 — 800 — Total Securities Available-for-Sale 298,812 298,812 Equity Securities 1,850 — 1,850 — Total Securities Measured on a Recurring Basis $ 300,662 $ — $ 300,662 $ — 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: March 31, 2020 Collateral Dependent Impaired Loans $ 582 $ — $ — $ 582 Other Real Estate Owned and Repossessed Assets, Net 942 — — 942 — December 31, 2019 Collateral Dependent Impaired Loans $ 285 $ — $ — $ 285 Other Real Estate Owned and Repossessed Assets, Net 1,261 — — 1,261 (186 ) March 31, 2019 Collateral Dependent Impaired Loans $ 684 $ — $ — $ 684 Other Real Estate Owned and Repossessed Assets, Net 1,445 — — 1,445 (101 ) |
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 March 31, 2020 Cash and Cash Equivalents $ 138,529 $ 138,529 $ 138,529 $ — $ — Securities Available-for-Sale 378,186 378,186 — 378,186 — Securities Held-to-Maturity 238,520 242,804 — 242,804 — Equity Securities 1,689 1,689 — 1,689 — Federal Home Loan Bank and Federal Reserve Bank Stock 5,379 5,379 — 5,379 — Net Loans 2,390,556 2,368,033 — — 2,368,033 Accrued Interest Receivable 7,856 7,856 — 7,856 — Derivatives, included in other assets 5,191 5,191 5,191 Deposits 2,811,005 2,811,668 — 2,811,668 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 57,909 57,909 — 57,909 — Federal Home Loan Bank Term Advances 50,000 51,194 — 51,194 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,392 1,392 — 1,392 — Derivatives, included in other liabilities 5,191 5,191 — 5,191 — Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Value Fair Value Level 1 Level 2 Level 3 December 31, 2019 Cash and Cash Equivalents $ 70,221 $ 70,221 $ 70,221 $ — $ — Securities Available-for-Sale 357,334 357,334 — 357,334 — Securities Held-to-Maturity 245,065 249,618 — 249,618 — Equity Securities 2,063 2,063 — 2,063 Federal Home Loan Bank and Federal Reserve Bank Stock 10,317 10,317 — 10,317 — Net Loans 2,364,933 2,332,797 — — 2,332,797 Accrued Interest Receivable 7,377 7,377 — 7,377 — Derivatives, included in other assets 69 69 — 69 — Deposits 2,616,054 2,614,170 — 2,614,170 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 51,099 51,099 — 51,099 — Federal Home Loan Bank Overnight Advances 130,000 130,000 — 130,000 — Federal Home Loan Bank Term Advances 30,000 29,993 — 29,993 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 1,436 1,436 — 1,436 — Derivatives, included in other liabilities 69 69 — 69 — March 31, 2019 Cash and Cash Equivalents $ 61,229 $ 61,229 $ 61,229 $ — $ — Securities Available-for-Sale 298,812 298,812 — 298,812 — Securities Held-to-Maturity 279,400 280,414 — 280,414 — Equity Securities 1,850 1,850 — 1,850 Federal Home Loan Bank and Federal Reserve Bank Stock 7,878 7,878 — 7,878 — Net Loans 2,214,835 2,164,298 — — 2,164,298 Accrued Interest Receivable 8,180 8,180 — 8,180 — Deposits 2,490,097 2,484,479 — 2,484,479 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 58,407 58,407 — 58,407 — Federal Home Loan Bank Overnight Advances 74,500 74,500 — 74,500 — Federal Home Loan Bank Term Advances 35,000 34,805 — 34,805 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 737 737 — 737 — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following includes quantitative data related to the Company's leases as of and for the three months ended March 31, 2020 and March 31, 2019: Three Months Ended Finance Lease Amounts: Classification March 31, 2020 March 31, 2019 Right-of-use Assets Premises and Equipment, Net $ 5,124 $ 2,922 Lease Liabilities Finance Leases 5,249 2,946 Operating Lease Amounts: Right-of-use Assets Other Assets $ 5,529 $ 5,587 Lease Liabilities Other Liabilities 5,602 5,639 Other Information: Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: Operating Outgoing Cash Flows From Finance Leases $ 50 $ 15 Operating Outgoing Cash Flows From Operating Leases 158 173 Financing Outgoing Cash Flows From Finance Leases 5 4 Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities — 2,939 Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities — 5,725 Weighted-average Remaining Lease Term—Finance Leases (Yrs.) 29.90 26.91 Weighted-average Remaining Lease Term—Operating Leases (Yrs.) 13.70 14.63 Weighted-average Discount Rate—Finance Leases % 3.75 % 3.82 % Weighted-average Discount Rate—Operating Leases % 3.36 % 3.50 % Lease cost information for the Company's leases is as follows: Three Months Ended March 31, 2020 March 31, 2019 Lease Cost: Finance Lease Cost: Amortization of Right-of-use assets $ 44 $ 17 Interest on Lease Liabilities 50 15 Operating Lease Cost 207 173 Short-term Lease Cost 7 33 Variable Lease Cost 55 56 Total Lease Cost $ 363 $ 294 |
Lessee, Operating Lease, Liability, Maturity | Future Lease Payments at March 31, 2020 are as follows: Operating Leases Financing Leases Twelve Months Ended: 3/31/2021 $ 776 $ 240 3/31/2022 640 243 3/31/2023 563 132 3/31/2024 548 243 3/31/2025 515 252 Thereafter 4,028 8,110 Total Undiscounted Cash Flows $ 7,070 $ 9,220 Less: Net Present Value Adjustment 1,468 3,971 Lease Liability $ 5,602 $ 5,249 |
Finance Lease, Liability, Maturity | Future Lease Payments at March 31, 2020 are as follows: Operating Leases Financing Leases Twelve Months Ended: 3/31/2021 $ 776 $ 240 3/31/2022 640 243 3/31/2023 563 132 3/31/2024 548 243 3/31/2025 515 252 Thereafter 4,028 8,110 Total Undiscounted Cash Flows $ 7,070 $ 9,220 Less: Net Present Value Adjustment 1,468 3,971 Lease Liability $ 5,602 $ 5,249 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of the interest rate swap agreements. Derivatives Not Designated as Hedging Instruments - Interest Rate Swap Agreements March 31, 2020 December 31, 2019 March 31, 2019 Fair value adjustment included in other assets $ 5,191 $ 69 $ — Fair value adjustment included in other liabilities 5,191 69 — Notional amount 121,559 44,531 — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income. Derivatives Designated as Hedging Instruments - Cash Flow Hedge Agreements March 31, 2020 December 31, 2019 March 31, 2019 Amount of loss recognized in AOCI $ (294 ) $ — $ — Amount of gain reclassified from AOCI interest expense — — — |
Investment Securities - Availab
Investment Securities - Available for Sale (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | Mar. 31, 2019USD ($)security |
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | $ 372,058 | $ 356,710 | $ 300,980 |
Gross Unrealized Gains | 7,663 | 1,904 | 659 |
Gross Unrealized Losses | (1,535) | (1,280) | (2,827) |
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 14,227 | ||
From 1 - 5 Years | 330,493 | ||
From 5 - 10 Years | 26,898 | ||
Over 10 Years | 440 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 14,642 | ||
From 1 - 5 Years | 336,860 | ||
From 5 - 10 Years | 26,244 | ||
Over 10 Years | 440 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 18,846 | 52,491 | 53,131 |
12 Months or Longer | 60,062 | 97,964 | 191,291 |
Total | $ 78,908 | $ 150,455 | $ 244,422 |
Number of Securities in a Continuous Loss Position | security | 28 | 55 | 88 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 316 | $ 317 | $ 258 |
12 Months or Longer | 1,219 | 963 | 2,569 |
Total | 1,535 | 1,280 | 2,827 |
Collateral Pledged | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, Pledged as Collateral, at Fair Value | 273,124 | 164,426 | 255,028 |
U.S. Government & Agency Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 5,002 | 5,002 | 35,519 |
Gross Unrealized Gains | 179 | 52 | 0 |
Gross Unrealized Losses | 0 | 0 | (136) |
Available-for-Sale at Fair Value | 5,181 | 5,054 | 35,383 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 5,002 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 5,181 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 35,383 |
Total | $ 0 | $ 0 | $ 35,383 |
Number of Securities in a Continuous Loss Position | security | 0 | 0 | 7 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 136 |
Total | 0 | 0 | 136 |
U.S. Government & Agency Obligations | Agency Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 5,002 | 5,002 | 35,519 |
Available-for-Sale at Fair Value | 5,181 | 5,054 | 35,383 |
State and Municipal Obligations | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 723 | 764 | 1,114 |
Gross Unrealized Gains | 0 | 0 | 2 |
Gross Unrealized Losses | 0 | 0 | 0 |
Available-for-Sale at Fair Value | 723 | 764 | 1,116 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 26 | ||
From 1 - 5 Years | 257 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 440 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 26 | ||
From 1 - 5 Years | 257 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 440 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | security | 0 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Mortgage- Backed Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 365,333 | 349,944 | 263,347 |
Gross Unrealized Gains | 7,484 | 1,852 | 657 |
Gross Unrealized Losses | (1,335) | (1,080) | (2,491) |
Available-for-Sale at Fair Value | 371,482 | 350,716 | 261,513 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 14,201 | ||
From 1 - 5 Years | 325,234 | ||
From 5 - 10 Years | 25,898 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 14,616 | ||
From 1 - 5 Years | 331,422 | ||
From 5 - 10 Years | 25,444 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 18,846 | 52,491 | 53,131 |
12 Months or Longer | 59,262 | 97,164 | 155,108 |
Total | $ 78,108 | $ 149,655 | $ 208,239 |
Number of Securities in a Continuous Loss Position | security | 27 | 54 | 80 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 316 | $ 317 | $ 258 |
12 Months or Longer | 1,019 | 763 | 2,233 |
Total | 1,335 | 1,080 | 2,491 |
Mortgage- Backed Securities | US Government Agencies Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 58,089 | 61,102 | 70,358 |
Available-for-Sale at Fair Value | 57,091 | 60,616 | 70,034 |
Mortgage- Backed Securities | US Government-sponsored Enterprises Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 307,244 | 288,842 | 192,989 |
Available-for-Sale at Fair Value | 314,391 | 290,100 | 191,479 |
Corporate and Other Debt Securities | |||
Available-For-Sale Securities | |||
Available-For-Sale Securities, at Amortized Cost | 1,000 | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | (200) | (200) | (200) |
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 1,000 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 800 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 800 | 800 | 800 |
Total | $ 800 | $ 800 | $ 800 |
Number of Securities in a Continuous Loss Position | security | 1 | 1 | 1 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 200 | 200 | 200 |
Total | $ 200 | $ 200 | $ 200 |
Investment Securities - Held to
Investment Securities - Held to Maturity (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | Mar. 31, 2019USD ($)security |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | $ 238,520 | $ 245,065 | $ 279,400 |
Gross Unrealized Gains | 4,433 | 4,647 | 1,792 |
Gross Unrealized Losses | (149) | (94) | (778) |
Held-To-Maturity Securities, at Fair Value | 242,804 | 249,618 | 280,414 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 19,165 | ||
From 1 - 5 Years | 147,180 | ||
From 5 - 10 Years | 70,585 | ||
Over 10 Years | 1,590 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 19,293 | ||
From 1 - 5 Years | 149,856 | ||
From 5 - 10 Years | 72,031 | ||
Over 10 Years | 1,624 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 5,625 | 1,438 | 0 |
12 Months or Longer | 1,867 | 1,994 | 97,471 |
Total | $ 7,492 | $ 3,432 | $ 97,471 |
Number of Securities in a Continuous Loss Position | security | 16 | 10 | 222 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 16 | $ 85 | $ 0 |
12 Months or Longer | 133 | 9 | 778 |
Total | 149 | 94 | 778 |
Equity Securities | 1,689 | 2,063 | 1,850 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 204,148 | 208,243 | 234,454 |
Gross Unrealized Gains | 3,104 | 4,170 | 1,695 |
Gross Unrealized Losses | (149) | (94) | (573) |
Held-To-Maturity Securities, at Fair Value | 207,103 | 212,319 | 235,576 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 16,308 | ||
From 1 - 5 Years | 115,665 | ||
From 5 - 10 Years | 70,585 | ||
Over 10 Years | 1,590 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 16,329 | ||
From 1 - 5 Years | 117,119 | ||
From 5 - 10 Years | 72,031 | ||
Over 10 Years | 1,624 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 5,625 | 1,438 | 0 |
12 Months or Longer | 1,867 | 1,994 | 71,450 |
Total | $ 7,492 | $ 3,432 | $ 71,450 |
Number of Securities in a Continuous Loss Position | security | 16 | 10 | 193 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 16 | $ 85 | $ 0 |
12 Months or Longer | 133 | 9 | 573 |
Total | 149 | 94 | 573 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 34,372 | 36,822 | 44,946 |
Gross Unrealized Gains | 1,329 | 477 | 97 |
Gross Unrealized Losses | 0 | 0 | (205) |
Held-To-Maturity Securities, at Fair Value | 35,701 | 37,299 | 44,838 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 2,857 | ||
From 1 - 5 Years | 31,515 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 2,964 | ||
From 1 - 5 Years | 32,737 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 26,021 |
Total | $ 0 | $ 0 | $ 26,021 |
Number of Securities in a Continuous Loss Position | security | 0 | 0 | 29 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 205 |
Total | 0 | 0 | 205 |
Fair Value, Measurements, Recurring | |||
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Equity Securities | 1,689 | 2,063 | 1,850 |
Collateral Pledged | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value | 231,539 | 237,969 | 265,465 |
US Government Agencies Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Amortized Cost | 1,594 | 1,703 | 2,069 |
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 | 1,655 | 1,720 | 2,012 |
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 | 32,778 | 35,119 | 42,877 |
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 | $ 34,046 | $ 35,579 | $ 42,826 |
Investment Securities - Unreali
Investment Securities - Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net (Loss) Gain on Equity Securities | $ (374) | $ 76 |
Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period | 0 | 0 |
Unrealized net (loss) gain recognized during the reporting period on equity securities still held at the reporting date | $ (374) | $ 76 |
Loans Loan Categories and Past
Loans Loan Categories and Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans receivable held-for-sale, net, not part of disposal group | $ 1,905 | $ 215 | $ 201 |
Recorded investment, past due | 12,736 | 13,606 | 10,177 |
Current Loans | 2,401,457 | 2,372,514 | 2,225,031 |
Total Loans | 2,414,193 | 2,386,120 | 2,235,208 |
Loans 90 or More Days Past Due and Still Accruing Interest | 437 | 253 | 64 |
Nonaccrual Loans | 4,943 | 4,005 | 5,143 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 7,900 | 5,972 | 6,479 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,843 | 5,035 | 1,594 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 2,993 | 2,599 | 2,104 |
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 251 | 213 | 185 |
Current Loans | 146,849 | 150,447 | 133,091 |
Total Loans | 147,100 | 150,660 | 133,276 |
Loans 90 or More Days Past Due and Still Accruing Interest | 5 | 0 | 0 |
Nonaccrual Loans | 63 | 81 | 415 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 173 | 150 | 168 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 70 | 42 | 0 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 8 | 21 | 17 |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,482 | 592 | 316 |
Current Loans | 524,648 | 509,949 | 493,071 |
Total Loans | 526,130 | 510,541 | 493,387 |
Loans 90 or More Days Past Due and Still Accruing Interest | 238 | 0 | 0 |
Nonaccrual Loans | 1,445 | 326 | 248 |
Commercial Real Estate | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 461 | 0 | 208 |
Commercial Real Estate | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 110 | 266 | 0 |
Commercial Real Estate | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 911 | 326 | 108 |
Consumer | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 7,636 | 8,815 | 6,514 |
Current Loans | 817,073 | 802,383 | 740,285 |
Total Loans | 824,709 | 811,198 | 746,799 |
Loans 90 or More Days Past Due and Still Accruing Interest | 93 | 0 | 0 |
Nonaccrual Loans | 715 | 663 | 588 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 5,636 | 5,670 | 4,758 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,451 | 2,700 | 1,387 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 549 | 445 | 369 |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 3,367 | 3,986 | 3,162 |
Current Loans | 912,887 | 909,735 | 858,584 |
Total Loans | 916,254 | 913,721 | 861,746 |
Loans 90 or More Days Past Due and Still Accruing Interest | 101 | 253 | 64 |
Nonaccrual Loans | 2,720 | 2,935 | 3,892 |
Residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 1,630 | 152 | 1,345 |
Residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | 212 | 2,027 | 207 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Recorded investment, past due | $ 1,525 | $ 1,807 | $ 1,610 |
Loans Supplemental Loan Informa
Loans Supplemental Loan Information (Details) - Consumer | 3 Months Ended |
Mar. 31, 2020 | |
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 |
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 |
Loans Allowance for Loan Losses
Loans Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for Loan Losses, Beginning Balance | $ 21,187 | $ 20,196 | |
Charge-offs | (481) | (462) | |
Recoveries | 159 | 167 | |
Provision | 2,772 | 472 | |
Allowance for Loan Losses, Ending Balance | 23,637 | 20,373 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 41 | 0 | $ 47 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 23,596 | 20,373 | 21,140 |
Ending Loan Balance - Individually Evaluated for Impairment | 2,235 | 2,945 | 1,101 |
Ending Loan Balance - Collectively Evaluated for Impairment | 2,411,958 | 2,232,263 | 2,385,019 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for Loan Losses, Beginning Balance | 1,386 | 1,218 | |
Charge-offs | (14) | (1) | |
Recoveries | 0 | 0 | |
Provision | 267 | 33 | |
Allowance for Loan Losses, Ending Balance | 1,639 | 1,250 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 4 | 0 | 5 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 1,635 | 1,250 | 1,381 |
Ending Loan Balance - Individually Evaluated for Impairment | 34 | 40 | 35 |
Ending Loan Balance - Collectively Evaluated for Impairment | 147,066 | 133,236 | 150,625 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for Loan Losses, Beginning Balance | 5,830 | 5,644 | |
Charge-offs | 0 | (29) | |
Recoveries | 0 | 0 | |
Provision | 1,235 | (26) | |
Allowance for Loan Losses, Ending Balance | 7,065 | 5,589 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 7,065 | 5,589 | 5,830 |
Ending Loan Balance - Individually Evaluated for Impairment | 1,137 | 387 | 0 |
Ending Loan Balance - Collectively Evaluated for Impairment | 524,993 | 493,000 | 510,541 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for Loan Losses, Beginning Balance | 9,408 | 8,882 | |
Charge-offs | (467) | (418) | |
Recoveries | 159 | 167 | |
Provision | 904 | 778 | |
Allowance for Loan Losses, Ending Balance | 10,004 | 9,409 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 10,004 | 9,409 | 9,408 |
Ending Loan Balance - Individually Evaluated for Impairment | 111 | 101 | 107 |
Ending Loan Balance - Collectively Evaluated for Impairment | 824,598 | 746,698 | 811,091 |
Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for Loan Losses, Beginning Balance | 4,563 | 4,452 | |
Charge-offs | 0 | (14) | |
Recoveries | 0 | 0 | |
Provision | 366 | (313) | |
Allowance for Loan Losses, Ending Balance | 4,929 | 4,125 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 37 | 0 | 42 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 4,892 | 4,125 | 4,521 |
Ending Loan Balance - Individually Evaluated for Impairment | 953 | 2,417 | 959 |
Ending Loan Balance - Collectively Evaluated for Impairment | $ 915,301 | $ 859,329 | $ 912,762 |
Loans Credit Quality Indicators
Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | |||
Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 637,461 | $ 628,550 | $ 591,134 |
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 283 | 295 | 2,401 |
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 35,486 | 32,356 | 33,128 |
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | 0 |
Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 1,737,334 | 1,721,068 | 1,604,001 |
Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 3,629 | 3,851 | 4,544 |
Commercial | Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 140,218 | 144,283 | 125,918 |
Commercial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 28 | 32 | 133 |
Commercial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 6,854 | 6,345 | 7,225 |
Commercial | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | 0 |
Commercial Real Estate | Satisfactory | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 497,243 | 484,267 | 465,216 |
Commercial Real Estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 255 | 263 | 2,268 |
Commercial Real Estate | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 28,632 | 26,011 | 25,903 |
Commercial Real Estate | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | 0 |
Consumer | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 823,901 | 810,535 | 746,211 |
Consumer | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 808 | 663 | 588 |
Residential | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 913,433 | 910,533 | 857,790 |
Residential | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | $ 2,821 | $ 3,188 | $ 3,956 |
Loans Impaired Loans (Details)
Loans Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Recorded Investment: | |||
With No Related Allowance | $ 1,946 | $ 2,945 | $ 807 |
With a Related Allowance | 289 | 0 | 294 |
Unpaid Principal Balance: | |||
With No Related Allowance | 1,945 | 2,943 | 806 |
With a Related Allowance | 290 | 0 | 295 |
Average Recorded Balance: | |||
With No Related Allowance | 1,377 | 2,937 | |
With a Related Allowance | 292 | 147 | |
Interest Income Recognized: | |||
With No Related Allowance | 10 | 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 | 38 | 0 |
With a Related Allowance | 33 | 0 | 34 |
Unpaid Principal Balance: | |||
With No Related Allowance | 0 | 424 | 0 |
With a Related Allowance | 34 | 0 | 35 |
Average Recorded Balance: | |||
With No Related Allowance | 0 | 234 | |
With a Related Allowance | 34 | 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 | |
Commercial Real Estate | |||
Recorded Investment: | |||
With No Related Allowance | 1,137 | 389 | 0 |
With a Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance: | |||
With No Related Allowance | 1,137 | 2 | 0 |
With a Related Allowance | 0 | 0 | 0 |
Average Recorded Balance: | |||
With No Related Allowance | 569 | 591 | |
With a Related Allowance | 0 | 0 | |
Interest Income Recognized: | |||
With No Related Allowance | 10 | 0 | |
With a Related Allowance | 0 | 0 | |
Cash Basis Income: | |||
With No Related Allowance | 0 | 0 | |
With a Related Allowance | 0 | 0 | |
Consumer | |||
Recorded Investment: | |||
With No Related Allowance | 112 | 101 | 108 |
With a Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance: | |||
With No Related Allowance | 111 | 101 | 107 |
With a Related Allowance | 0 | 0 | 0 |
Average Recorded Balance: | |||
With No Related Allowance | 110 | 101 | |
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 | 697 | 2,417 | 699 |
With a Related Allowance | 256 | 0 | 260 |
Unpaid Principal Balance: | |||
With No Related Allowance | 697 | 2,416 | 699 |
With a Related Allowance | 256 | 0 | $ 260 |
Average Recorded Balance: | |||
With No Related Allowance | 698 | 2,011 | |
With a Related Allowance | 258 | 147 | |
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 | |
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 16 | $ 13 |
Post-Modification Outstanding Recorded Investment | $ 16 | $ 13 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 16 | $ 13 |
Post-Modification Outstanding Recorded Investment | $ 16 | $ 13 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Subsequent Default, Number of Contracts | contract | 0 | 0 |
Subsequent Default, Recorded Investment | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments to Extend Credit and Letters of Credit (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 376,519 | $ 349,718 | $ 310,749 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 3,301 | 3,129 | 4,431 |
Fair Value | $ 29 | $ 31 | $ 20 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Before-Tax Amount | ||
Other Comprehensive Income | $ 5,300 | $ 3,007 |
Tax (Expense) Benefit | ||
Other Comprehensive Income | (1,355) | (764) |
Net of Tax Amount | ||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | 3,879 | 2,080 |
Amortization of Net Retirement Plan | 66 | 163 |
Other Comprehensive Income | 3,945 | 2,243 |
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 | 5,504 | 2,788 |
Tax (Expense) Benefit | ||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | (1,406) | (708) |
Net of Tax Amount | ||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | 4,098 | 2,080 |
Amortization of Net Retirement Plan | 0 | 0 |
Unrealized Loss on Cash Flow Swap | ||
Before-Tax Amount | ||
Net Unrealized Losses on Cash Flow Swap | (294) | |
Tax (Expense) Benefit | ||
Net Unrealized Losses on Cash Flow Swap | 75 | |
Net of Tax Amount | ||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | (219) | |
Net Unrealized Losses on Cash Flow Swap | (219) | |
Amortization of Net Retirement Plan | 0 | |
Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||
Before-Tax Amount | ||
Amortization of Net Retirement Plan | 36 | 163 |
Tax (Expense) Benefit | ||
Amortization of Net Retirement Plan | (9) | (42) |
Net of Tax Amount | ||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period | 0 | 0 |
Amortization of Net Retirement Plan | 27 | 121 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service | ||
Before-Tax Amount | ||
Amortization of Net Retirement Plan | 54 | 56 |
Tax (Expense) Benefit | ||
Amortization of Net Retirement Plan | (15) | (14) |
Net of Tax Amount | ||
Amortization of Net Retirement Plan | $ 39 | $ 42 |
Comprehensive Income Changes in
Comprehensive Income Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | $ 301,728 | $ 269,584 |
Other comprehensive income or loss before reclassifications | 3,879 | 2,080 |
Amounts reclassified from accumulated other comprehensive income | 66 | 163 |
Other Comprehensive Income | 3,945 | 2,243 |
Stockholders' equity, ending balance | 309,398 | 276,609 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (6,357) | (13,810) |
Stockholders' equity, ending balance | (2,412) | (11,567) |
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 | 465 | (3,697) |
Other comprehensive income or loss before reclassifications | 4,098 | 2,080 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other Comprehensive Income | 4,098 | 2,080 |
Stockholders' equity, ending balance | 4,563 | (1,617) |
Unrealized Loss on Cash Flow Swap | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 0 | |
Other comprehensive income or loss before reclassifications | (219) | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Other Comprehensive Income | (219) | |
Stockholders' equity, ending balance | (219) | |
Net Actuarial Gain (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (5,847) | (8,971) |
Other comprehensive income or loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 27 | 121 |
Other Comprehensive Income | 27 | 121 |
Stockholders' equity, ending balance | (5,820) | (8,850) |
Net Priot Service (Cost) Credit | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (975) | (1,142) |
Other comprehensive income or loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 39 | 42 |
Other Comprehensive Income | 39 | 42 |
Stockholders' equity, ending balance | $ (936) | $ (1,100) |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and Employee Benefits | $ 10,383 | $ 9,319 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 10,174 | 10,884 |
Provision for income taxes | (2,047) | (2,150) |
Net Income | 8,127 | 8,734 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income | (66) | (163) |
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] | ||
Salaries and Employee Benefits | (54) | (56) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Net Retirement Plan Actuarial Gain (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and Employee Benefits | (36) | (163) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
INCOME BEFORE PROVISION FOR INCOME TAXES | (90) | (219) |
Provision for income taxes | 24 | 56 |
Net Income | $ (66) | $ (163) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 3 Months Ended | |
Mar. 31, 2020plan$ / sharesshares | Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Number of plans | plan | 3 | |
Stock dividend, percent | 3.00% | |
Shares | ||
Outstanding, beginning of period (in shares) | shares | 241,242 | |
Granted (in shares) | shares | 50,800 | |
Exercised (in shares) | shares | (14,282) | |
Forfeited (in shares) | shares | (2,752) | |
Outstanding, end of period (in shares) | shares | 275,008 | |
Exercisable at period end (in shares) | shares | 155,195 | |
Vested and expected to vest (in shares) | shares | 119,813 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 27.58 | |
Granted (in dollars per share) | 35.28 | |
Exercised (in dollars per share) | 24.05 | |
Forfeited (in dollars per share) | 29.65 | |
Outstanding, end of period (in dollars per share) | 29.17 | |
Exercisable at period end (in dollars per share) | 26.23 | |
Vested and expected to vest (in dollars per share) | 32.97 | |
Fair Value (in dollars per share) | $ 4.99 | |
Dividend Yield | 2.90% | |
Expected Volatility | 20.25% | |
Risk Free Interest Rate | 1.53% | |
Expected Lives, in years | 6 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 | |
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) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units | ||
Balance at Beginning of Period (in shares) | 7,496 | 3,478 |
Granted (in shares) | 3,827 | 4,018 |
Balance at End of Period (in shares) | 11,323 | 7,496 |
Weighted Average Grant Date Fair Value | ||
Outstanding at Beginning of period (in dollars per share) | $ 31.18 | $ 31.62 |
Granted (in dollars per share) | 35.28 | 30.79 |
Outstanding at End of period (in dollars per share) | $ 32.57 | $ 31.18 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount expensed | $ 76 | $ 79 |
Discount from market price, percent | 5.00% | |
Restricted Stock Units (RSU) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount expensed | $ 27 | $ 16 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
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 | 2.04% | ||
Service Cost | $ 430 | $ 399 | |
Interest Cost | 417 | 397 | |
Expected Return on Plan Assets | (904) | (770) | |
Amortization of Prior Service (Credit) Cost | 16 | 17 | |
Amortization of Net Loss | 1 | 153 | |
Net Periodic Cost | (40) | 196 | |
Plan Contributions During the Period | 0 | 0 | |
Select Executive Retirement Plan | |||
Net Periodic Benefit Cost [Line Items] | |||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 3.09% | ||
Service Cost | 103 | 97 | |
Interest Cost | 54 | 52 | |
Expected Return on Plan Assets | 0 | 0 | |
Amortization of Prior Service (Credit) Cost | 11 | 14 | |
Amortization of Net Loss | 33 | 27 | |
Net Periodic Cost | 201 | 190 | |
Plan Contributions During the Period | 117 | 116 | |
Post-Retirement Benefit Plans | |||
Net Periodic Benefit Cost [Line Items] | |||
Assumptions used calculating benefit obligation, interest rate to annuitize cash balance account | 3.68% | ||
Service Cost | 33 | 30 | |
Interest Cost | 78 | 89 | |
Expected Return on Plan Assets | 0 | 0 | |
Amortization of Prior Service (Credit) Cost | 27 | 25 | |
Amortization of Net Loss | 2 | (17) | |
Net Periodic Cost | 140 | 127 | |
Plan Contributions During the Period | $ 78 | $ 37 | |
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 | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Sep. 27, 2019 | ||||
Earnings Per Share [Abstract] | ||||||
Stock dividend, percent | 3.00% | |||||
Net Income | $ 8,127 | $ 8,734 | ||||
Weighted Average Shares - Basic (in shares) | 14,996 | [1] | 14,903 | [2] | ||
Earnings Per Share - Basic (in dollars per share) | [1] | $ 0.54 | $ 0.59 | |||
Dilutive Average Shares Attributable to Stock Options (in shares) | 30 | 53 | ||||
Weighted Average Shares - Diluted (in shares) | [2] | 15,026 | 14,956 | |||
Earnings Per Share - Diluted (in dollars per share) | [1] | $ 0.54 | $ 0.58 | |||
[1] | Cash dividends paid per share have been adjusted for the September 27, 2019 3% stock dividend. | |||||
[2] | 2019 Share and Per Share Amounts have been restated for the September 27, 2019 3% stock dividend. |
Fair Values - Recurring and No
Fair Values - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | $ 378,186 | $ 357,334 | $ 298,812 |
Equity Securities | 1,689 | 2,063 | 1,850 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 |
Equity Securities | 1,689 | 2,063 | 1,850 |
Total Securities Measured on a Recurring Basis | 379,875 | 359,397 | 300,662 |
Derivatives, included in other assets | 5,191 | 69 | |
Total Measured on a Recurring Basis | 385,066 | 359,466 | |
Derivatives, included in other liabilities | 5,191 | 69 | |
Total Measured on a Recurring Basis | 5,191 | 69 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | ||
Equity Securities | 0 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other assets | 0 | 0 | |
Total Measured on a Recurring Basis | 0 | 0 | |
Derivatives, included in other liabilities | 0 | 0 | |
Total Measured on a Recurring Basis | 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 at Fair Value | 378,186 | 357,334 | 298,812 |
Equity Securities | 1,689 | 2,063 | 1,850 |
Total Securities Measured on a Recurring Basis | 379,875 | 359,397 | 300,662 |
Derivatives, included in other assets | 5,191 | 69 | |
Total Measured on a Recurring Basis | 385,066 | 359,466 | |
Derivatives, included in other liabilities | 5,191 | 69 | |
Total Measured on a Recurring Basis | 5,191 | 69 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | ||
Equity Securities | 0 | 0 | 0 |
Total Securities Measured on a Recurring Basis | 0 | 0 | 0 |
Derivatives, included in other assets | 0 | 0 | |
Total Measured on a Recurring Basis | 0 | 0 | |
Derivatives, included in other liabilities | 0 | 0 | |
Total Measured on a Recurring Basis | 0 | 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral Dependent Impaired Loans | 582 | 285 | 684 |
Collateral Dependent Impaired Loans, Life-to-Date Gains (Losses) | |||
Other Real Estate Owned and Repossessed Assets, Net | 942 | 1,261 | 1,445 |
Other Real Estate owned and Repossessed Assets, Net, Life-to-Date Gains (Losses) | 0 | (186) | (101) |
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 | 582 | 285 | 684 |
Other Real Estate Owned and Repossessed Assets, Net | 942 | 1,261 | 1,445 |
U.S. Government & Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 5,181 | 5,054 | 35,383 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 5,181 | 5,054 | 35,383 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 5,181 | 5,054 | 35,383 |
U.S. Government & Agency Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 723 | 764 | 1,116 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 723 | 764 | 1,116 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 723 | 764 | 1,116 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 371,482 | 350,716 | 261,513 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 371,482 | 350,716 | 261,513 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Corporate and Other Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 0 | 0 | 0 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | 800 | 800 | 800 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale at Fair Value | $ 0 | $ 0 | $ 0 |
Fair Values - Fair Value by Bal
Fair Values - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||||
Cash and Cash Equivalents | $ 138,529 | $ 70,221 | $ 61,229 | $ 84,239 |
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 | |
Securities Held-to-Maturity | 238,520 | 245,065 | 279,400 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Net Loans | 2,390,556 | 2,364,933 | 2,214,835 | |
Deposits | 2,811,005 | 2,616,054 | 2,490,097 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 57,909 | 51,099 | 58,407 | |
Federal Home Loan Bank Overnight Advances | 0 | 130,000 | 74,500 | |
Federal Home Loan Bank Term Advances | 50,000 | 30,000 | 35,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Fair Value | ||||
Available-for-Sale | 378,186 | 357,334 | 298,812 | |
Securities Held-to-Maturity | 242,804 | 249,618 | 280,414 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Carrying Amount | ||||
Carrying Value | ||||
Cash and Cash Equivalents | 138,529 | 70,221 | 61,229 | |
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 | |
Securities Held-to-Maturity | 238,520 | 245,065 | 279,400 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 5,379 | 10,317 | 7,878 | |
Net Loans | 2,390,556 | 2,364,933 | 2,214,835 | |
Accrued Interest Receivable | 7,856 | 7,377 | 8,180 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Deposits | 2,811,005 | 2,616,054 | 2,490,097 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 57,909 | 51,099 | 58,407 | |
Federal Home Loan Bank Overnight Advances | 130,000 | 74,500 | ||
Federal Home Loan Bank Term Advances | 50,000 | 30,000 | 35,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 1,392 | 1,436 | 737 | |
Derivatives, included in other liabilities | 5,191 | 69 | ||
Fair Value | ||||
Available-for-Sale | 378,186 | 357,334 | 298,812 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Derivatives, included in other liabilities | 5,191 | 69 | ||
Fair Value | ||||
Carrying Value | ||||
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Derivatives, included in other liabilities | 5,191 | 69 | ||
Fair Value | ||||
Cash and Cash Equivalents | 138,529 | 70,221 | 61,229 | |
Available-for-Sale | 378,186 | 357,334 | 298,812 | |
Securities Held-to-Maturity | 242,804 | 249,618 | 280,414 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 5,379 | 10,317 | 7,878 | |
Net Loans, at Fair Value | 2,368,033 | 2,332,797 | 2,164,298 | |
Accrued Interest Receivable | 7,856 | 7,377 | 8,180 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Deposits | 2,811,668 | 2,614,170 | 2,484,479 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 57,909 | 51,099 | 58,407 | |
Federal Home Loan Bank Overnight Advances | 130,000 | 74,500 | ||
Federal Home Loan Bank Term Advances | 51,194 | 29,993 | 34,805 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 1,392 | 1,436 | 737 | |
Derivatives, included in other liabilities | 5,191 | 69 | ||
Quoted Prices In Active Markets for Indentical Assets (Level 1) | Fair Value | ||||
Carrying Value | ||||
Available-for-Sale at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | 0 | ||
Derivatives, included in other assets | 0 | |||
Derivatives, included in other liabilities | 0 | 0 | ||
Fair Value | ||||
Cash and Cash Equivalents | 138,529 | 70,221 | 61,229 | |
Available-for-Sale | 0 | 0 | 0 | |
Securities Held-to-Maturity | 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 | 0 | 0 | 0 | |
Derivatives, included in other assets | 0 | |||
Deposits | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances | 0 | 0 | ||
Federal Home Loan Bank Term Advances | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 0 | 0 | 0 | |
Accrued Interest Payable | 0 | 0 | 0 | |
Derivatives, included in other liabilities | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Fair Value | ||||
Carrying Value | ||||
Available-for-Sale at Fair Value | 378,186 | 357,334 | 298,812 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Derivatives, included in other liabilities | 5,191 | 69 | ||
Fair Value | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | |
Available-for-Sale | 378,186 | 357,334 | 298,812 | |
Securities Held-to-Maturity | 242,804 | 249,618 | 280,414 | |
Equity Securities | 1,689 | 2,063 | 1,850 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 5,379 | 10,317 | 7,878 | |
Net Loans, at Fair Value | 0 | 0 | 0 | |
Accrued Interest Receivable | 7,856 | 7,377 | 8,180 | |
Derivatives, included in other assets | 5,191 | 69 | ||
Deposits | 2,811,668 | 2,614,170 | 2,484,479 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 57,909 | 51,099 | 58,407 | |
Federal Home Loan Bank Overnight Advances | 130,000 | 74,500 | ||
Federal Home Loan Bank Term Advances | 51,194 | 29,993 | 34,805 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable | 1,392 | 1,436 | 737 | |
Derivatives, included in other liabilities | 5,191 | 69 | ||
Significant Unobservable Inputs (Level 3) | Fair Value | ||||
Carrying Value | ||||
Available-for-Sale at Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Derivatives, included in other assets | 0 | |||
Derivatives, included in other liabilities | 0 | 0 | ||
Fair Value | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | |
Available-for-Sale | 0 | 0 | 0 | |
Securities Held-to-Maturity | 0 | 0 | 0 | |
Equity Securities | 0 | |||
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value | 0 | 0 | 0 | |
Net Loans, at Fair Value | 2,368,033 | 2,332,797 | 2,164,298 | |
Accrued Interest Receivable | 0 | 0 | 0 | |
Derivatives, included in other assets | 0 | |||
Deposits | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 0 | 0 | 0 | |
Federal Home Loan Bank Overnight Advances | 0 | 0 | ||
Federal Home Loan Bank Term Advances | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 0 | 0 | 0 | |
Accrued Interest Payable | 0 | 0 | $ 0 | |
Derivatives, included in other liabilities | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020branch_office | |
Leases [Abstract] | |
Number of branch offices | 5 |
Leases - Quantitative Lease Dat
Leases - Quantitative Lease Data (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finance Lease Amounts: | |||
Right-of-use Assets | $ 5,124 | $ 2,922 | |
Lease Liabilities | 5,249 | 2,946 | $ 5,254 |
Operating Lease Amounts: | |||
Right-of-use Assets | 5,529 | 5,587 | |
Lease Liabilities | 5,602 | 5,639 | |
Cash Paid For Amounts Included In The Measurement Of Lease Liabilities: | |||
Operating Outgoing Cash Flows From Finance Leases | 50 | 15 | |
Operating Outgoing Cash Flows From Operating Leases | 158 | 173 | |
Financing Outgoing Cash Flows From Finance Leases | 5 | 4 | |
Right-of-use Assets Obtained In Exchange For New Finance Lease Liabilities | 0 | 2,939 | |
Right-of-use Assets Obtained In Exchange For New Operating Lease Liabilities | $ 0 | $ 5,725 | |
Weighted-average Remaining Lease Term—Finance Leases (Yrs.) | 29 years 10 months 24 days | 26 years 10 months 28 days | |
Weighted-average Remaining Lease Term—Operating Leases (Yrs.) | 13 years 8 months 12 days | 14 years 7 months 17 days | |
Weighted-average Discount Rate—Finance Leases % | 3.75% | 3.82% | |
Weighted-average Discount Rate—Operating Leases % | 3.36% | 3.50% | |
Finance Lease Cost: | |||
Amortization of Right-of-use assets | $ 44 | $ 17 | |
Interest on Lease Liabilities | 50 | 15 | |
Operating Lease Cost | 207 | 173 | |
Short-term Lease Cost | 7 | 33 | |
Variable Lease Cost | 55 | 56 | |
Total Lease Cost | $ 363 | $ 294 |
Leases - Future Lease Payments
Leases - Future Lease Payments on Finance and Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Operating Leases | |||
2020 | $ 776 | ||
2021 | 640 | ||
2022 | 563 | ||
2023 | 548 | ||
2024 | 515 | ||
Thereafter | 4,028 | ||
Total | 7,070 | ||
Less: Net Present Value Adjustment | 1,468 | ||
Lease Liabilities | 5,602 | $ 5,639 | |
Financing Leases | |||
2020 | 240 | ||
2021 | 243 | ||
2022 | 132 | ||
2023 | 243 | ||
2024 | 252 | ||
Thereafter | 8,110 | ||
Total | 9,220 | ||
Less: Net Present Value Adjustment | 3,971 | ||
Lease Liabilities | $ 5,249 | $ 5,254 | $ 2,946 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Derivative [Line Items] | |||
Notional amount | $ 121,559 | $ 44,531 | $ 0 |
Other Assets | |||
Derivative [Line Items] | |||
Derivative asset | 5,191 | 69 | 0 |
Other Liabilities | |||
Derivative [Line Items] | |||
Derivative liability | $ 5,191 | $ 69 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Hedge Agreements (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Amount of hedged item | $ 20,000 | ||
Amount of loss recognized in AOCI | (294) | $ 0 | $ 0 |
Amount of gain reclassified from AOCI interest expense | $ 0 | $ 0 | $ 0 |