Leases (Tables)

9 Months Ended

Sep. 30, 2025

The following includes quantitative data related to Arrow's leases as of and for the nine months ended September 30, 2025 and September 30, 2024:


		Nine Months Ended
Finance Lease Amounts:	Classification	September 30, 2025			September 30, 2024
Right-of-Use Assets	Premises and Equipment, Net	$	4,150		$	4,327
Lease Liabilities	Finance Leases	4,928			5,022

Operating Lease Amounts:
Right-of-Use Assets	Other Assets	$	4,347		$	4,792
Lease Liabilities	Other Liabilities	4,493			5,007

Other Information:

Cash Paid For Amounts Included In The Measurement Of Lease Liabilities:
Operating Outgoing Cash Flows From Finance Leases		$	135		$	142
Operating Outgoing Cash Flows From Operating Leases		743			471
Financing Outgoing Cash Flows From Finance Leases		77			44
Right-of-Use Assets Obtained In Exchange For New Finance Lease Liabilities		—			—
Right-of-Use Assets Obtained In Exchange For New Operating Lease Liabilities		395			326
Weighted-average Remaining Lease Term - Finance Leases (Yrs.)		24.63			25.58
Weighted-average Remaining Lease Term - Operating Leases (Yrs.)		9.64			10.44
Weighted-average Discount Rate—Finance Leases		3.75		%	3.75		%
Weighted-average Discount Rate—Operating Leases		3.44		%	3.37		%


Lease cost information for Arrow's leases is as follows:
	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Lease Cost:
Finance Lease Cost:
Reduction of Right-of-Use Assets	$	44	$	44	$	133	$	132
Interest on Lease Liabilities	46		47		135		142
Operating Lease Cost	208		203		621		597
Short-term Lease Cost	29		7		57		28
Variable Lease Cost	49		32		104		177
Total Lease Cost	$	376	$	333	$	1,050	$	1,076


Future Lease Payments at September 30, 2025 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
9/30/2026	$	725	$	246
9/30/2027	733		268
9/30/2028	618		268
9/30/2029	603		272
9/30/2030	503		286
Thereafter	2,154		6,505
Total Undiscounted Cash Flows	$	5,336	$	7,845
Less: Net Present Value Adjustment	(843)		(2,917)
Lease Liability	$	4,493	$	4,928


Future Lease Payments at September 30, 2025 are as follows:
	Operating Leases		Financing Leases
Twelve Months Ended:
9/30/2026	$	725	$	246
9/30/2027	733		268
9/30/2028	618		268
9/30/2029	603		272
9/30/2030	503		286
Thereafter	2,154		6,505
Total Undiscounted Cash Flows	$	5,336	$	7,845
Less: Net Present Value Adjustment	(843)		(2,917)
Lease Liability	$	4,493	$	4,928

ARROW FINANCIAL CORP 10-Q