Company Quick10K Filing
Quick10K
Arrow Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$33.87 14 $490
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-31 Other Events, Exhibits
8-K 2019-07-22 Earnings, Exhibits
8-K 2019-06-03 Amend Bylaw, Exhibits
8-K 2019-05-08 Shareholder Vote
8-K 2019-04-24 Other Events, Exhibits
8-K 2019-04-23 Earnings, Exhibits
8-K 2019-02-04 Officers, Other Events, Exhibits
8-K 2019-01-29 Earnings, Exhibits
8-K 2018-10-31 Other Events, Exhibits
8-K 2018-10-22 Earnings, Exhibits
8-K 2018-08-29 Other Events, Exhibits
8-K 2018-07-25 Other Events, Exhibits
8-K 2018-07-23 Earnings, Exhibits
8-K 2018-04-25 Shareholder Vote
8-K 2018-04-23 Earnings, Exhibits
8-K 2018-02-06 Officers, Exhibits
8-K 2018-01-31 Other Events, Exhibits
8-K 2018-01-30 Earnings, Exhibits
CHE Chemed 5,300
MGEE MGE Energy 2,330
STC Stewart Information Services 1,000
MLR Miller Industries 383
ARPO Aerpio Pharmaceuticals 42
IZEA IZEA 8
SHMP NaturalShrimp 0
GROUP Kinetic Group 0
CYDY Cytodyn 0
WESC W&E Source 0
AROW 2019-06-30
Part I - Financial Information
Item 1.
Note 1. Accounting Policies
Note 2. Investment Securities (In Thousands)
Note 3. Loans (In Thousands)
Note 4. Guarantees (In Thousands)
Note 5. Comprehensive Income (In Thousands)
Note 6. Stock-Based Compensation (Dollars in Thousands, Except Share and per Share Amounts)
Note 7. Retirement Benefit Plans (Dollars in Thousands)
Note 8. Earnings per Common Share (In Thousands, Except per Share Amounts)
Note 9. Fair Values (Dollars in Thousands)
Note 10. Leases (Dollars in Thousands)
Item 2.
Item 3.
Item 4.
Part II - Other Information
Item 1.
Item 1.A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
EX-15 ex15awarenessletterjune2019.htm
EX-31.1 ex311ceoq22019.htm
EX-31.2 ex312cfoq22019.htm
EX-32 ex32906cert-q22019.htm

Arrow Financial Earnings 2019-06-30

AROW 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 arowform10-qjune2019.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2019
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-12507

ARROW FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)
New York
 
22-2448962
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer
Identification No.)
250 GLEN STREET, GLENS FALLS, NEW YORK 12801
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code:   (518) 745-1000

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Common Stock, Par Value $1.00 per share
AROW
NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes          No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes          No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer     
Accelerated filer   x 
Non-accelerated filer     
 
Smaller reporting company     
 
 
 
 
 
 
 
Emerging growth company     
 
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. __

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      x   No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
 
Outstanding as of July 31, 2019
Common Stock, par value $1.00 per share
 
14,519,270




ARROW FINANCIAL CORPORATION
FORM 10-Q
TABLE OF CONTENTS


# 2



PART I - FINANCIAL INFORMATION
Item 1.
FINANCIAL STATEMENTS

# 3



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
 
June 30, 2019
 
December 31, 2018
 
June 30, 2018
ASSETS
 
 
 
 
 
Cash and Due From Banks
$
34,650

 
$
56,529

 
$
38,552

Interest-Bearing Deposits at Banks
28,045

 
27,710

 
22,189

Investment Securities:
 
 
 
 
 
Available-for-Sale
285,878

 
317,535

 
325,387

Held-to-Maturity (Approximate Fair Value of $266,068 at June 30, 2019; $280,338 at December 31, 2018; and $292,605 at June 30, 2018)
262,541

 
283,476

 
297,885

Equity Securities
1,850

 
1,774

 
1,802

Other Investments
8,202

 
15,506

 
11,089

Loans
2,280,308

 
2,196,215

 
2,057,862

Allowance for Loan Losses
(20,695
)
 
(20,196
)
 
(19,640
)
Net Loans
2,259,613

 
2,176,019

 
2,038,222

Premises and Equipment, Net
38,836

 
30,446

 
28,104

Goodwill
21,873

 
21,873

 
21,873

Other Intangible Assets, Net
1,730

 
1,852

 
2,060

Other Assets
62,532

 
55,614

 
58,008

Total Assets
$
3,005,750

 
$
2,988,334

 
$
2,845,171

LIABILITIES
 
 
 
 
 
Noninterest-Bearing Deposits
$
467,179

 
$
472,768

 
$
467,048

Interest-Bearing Checking Accounts
741,395

 
790,781

 
861,959

Savings Deposits
908,642

 
818,048

 
735,217

Time Deposits over $250,000
97,220

 
73,583

 
70,950

Other Time Deposits
289,317

 
190,404

 
169,607

Total Deposits
2,503,753

 
2,345,584

 
2,304,781

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
51,149

 
54,659

 
60,248

Federal Home Loan Bank Overnight Advances
83,000

 
234,000

 
136,000

Federal Home Loan Bank Term Advances
30,000

 
45,000

 
45,000

Junior Subordinated Obligations Issued to Unconsolidated
Subsidiary Trusts
20,000

 
20,000

 
20,000

Finance Leases
5,270

 

 

Other Liabilities
27,929

 
19,507

 
19,654

Total Liabilities
2,721,101

 
2,718,750

 
2,585,683

STOCKHOLDERS’ EQUITY
 
 
 
 
 
Preferred Stock, $1 Par Value and 1,000,000 Shares Authorized at June 30, 2019; $5 Par Value and 1,000,000 Shares Authorized at December 31, 2018 and June 30, 2018

 

 

Common Stock, $1 Par Value; 30,000,000 Shares Authorized at June 30, 2019 and 20,000,000 Shares Authorized at December 31, 2018 and June 30, 2018 (19,035,565 Shares Issued at June 30, 2019 and December 31, 2018 and 18,481,301 at June 30, 2018)
19,035

 
19,035

 
18,481

Additional Paid-in Capital
316,229

 
314,533

 
292,020

Retained Earnings
39,397

 
29,257

 
40,326

Unallocated ESOP Shares (5,001 Shares at June 30, 2019; 5,001 Shares at December 31, 2018 and 9,643 Shares at June 30, 2018)
(100
)
 
(100
)
 
(200
)
Accumulated Other Comprehensive Loss
(9,647
)
 
(13,810
)
 
(11,804
)
Treasury Stock, at Cost (4,517,412 Shares at June 30, 2019; 4,558,207 Shares at December 31, 2018 and 4,467,909 Shares at June 30, 2018)
(80,265
)
 
(79,331
)
 
(79,335
)
Total Stockholders’ Equity
284,649

 
269,584

 
259,488

Total Liabilities and Stockholders’ Equity
$
3,005,750

 
$
2,988,334

 
$
2,845,171

See Notes to Unaudited Interim Consolidated Financial Statements.

# 4



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
INTEREST AND DIVIDEND INCOME
 
 
 
 
 
 
 
Interest and Fees on Loans
$
23,520

 
$
19,909

 
$
45,923

 
$
38,767

Interest on Deposits at Banks
195

 
158

 
390

 
292

Interest and Dividends on Investment Securities:
 
 
 
 
 
 
 
Fully Taxable
2,284

 
2,048

 
4,653

 
3,941

Exempt from Federal Taxes
1,228

 
1,475

 
2,474

 
3,008

Total Interest and Dividend Income
27,227

 
23,590

 
53,440

 
46,008

INTEREST EXPENSE
 
 
 
 
 
 
 
Interest-Bearing Checking Accounts
453

 
388

 
935

 
775

Savings Deposits
2,008

 
711

 
3,609

 
1,233

Time Deposits over $250,000
515

 
328

 
911

 
532

Other Time Deposits
1,131

 
282

 
1,844

 
541

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
25

 
16

 
47

 
32

Federal Home Loan Bank Advances
1,099

 
656

 
2,693

 
1,070

Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts
261

 
247

 
530

 
461

Interest on Financing Leases
28

 

 
43

 

Total Interest Expense
5,520

 
2,628

 
10,612

 
4,644

NET INTEREST INCOME
21,707

 
20,962

 
42,828

 
41,364

Provision for Loan Losses
455

 
629

 
927

 
1,375

NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
21,252

 
20,333

 
41,901

 
39,989

NONINTEREST INCOME
 
 
 
 
 
 
 
Income From Fiduciary Activities
2,252

 
2,647

 
4,359

 
4,844

Fees for Other Services to Customers
2,545

 
2,570

 
4,947

 
4,950

Insurance Commissions
1,935

 
2,192

 
3,654

 
4,095

Net Gain on Securities Transactions

 
223

 
76

 
241

Net Gain on Sales of Loans
140

 
23

 
244

 
61

Other Operating Income
24

 
256

 
503

 
609

Total Noninterest Income
6,896

 
7,911

 
13,783

 
14,800

NONINTEREST EXPENSE
 
 
 
 
 
 
 
Salaries and Employee Benefits
9,727

 
9,812

 
19,046

 
19,181

Occupancy Expenses, Net
1,279

 
1,270

 
2,699

 
2,610

Technology and Equipment Expense
3,243

 
2,849

 
6,384

 
5,547

FDIC Assessments
212

 
223

 
424

 
440

Other Operating Expense
2,447

 
2,038

 
5,007

 
4,370

Total Noninterest Expense
16,908

 
16,192

 
33,560

 
32,148

INCOME BEFORE PROVISION FOR INCOME TAXES
11,240

 
12,052

 
22,124

 
22,641

Provision for Income Taxes
2,306

 
2,322

 
4,456

 
4,380

NET INCOME
$
8,934


$
9,730


$
17,668


$
18,261

Average Shares Outstanding 1:
 
 
 
 
 
 

Basic
14,487

 
14,394

 
14,478

 
14,374

Diluted
14,527

 
14,480

 
14,523

 
14,459

Per Common Share:
 
 
 
 
 
 
 
Basic Earnings
$
0.62

 
$
0.68

 
$
1.22

 
$
1.27

Diluted Earnings
0.62

 
0.67

 
1.22

 
1.26


1 2018 Share and Per Share Amounts have been restated for the September 27, 2018 3% stock dividend.
See Notes to Unaudited Interim Consolidated Financial Statements.

# 5



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Net Income
$
8,934

 
$
9,730

 
$
17,668

 
$
18,261

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
  Net Unrealized Securities Holding Gains (Losses)
Arising During the Period
1,744

 
(635
)
 
3,824

 
(3,120
)
  Amortization of Net Retirement Plan Actuarial Loss
133

 
75

 
254

 
121

  Amortization of Net Retirement Plan Prior
Service Cost
43

 
41

 
85

 
40

Other Comprehensive Income (Loss)
1,920

 
(519
)
 
4,163

 
(2,959
)
  Comprehensive Income
$
10,854

 
$
9,211

 
$
21,831

 
$
15,302

 
 
 
 
 
 
 
 

See Notes to Unaudited Interim Consolidated Financial Statements.


# 6



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)

 
Six-Month Period Ended June 30, 2019
 
Common
Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Unallo-cated ESOP
Shares
 
Accumu-lated
Other Com-
prehensive
Loss
 
Treasury
Stock
 
Total
Balance at December 31, 2018
$
19,035

 
$
314,533

 
$
29,257

 
$
(100
)
 
$
(13,810
)
 
$
(79,331
)
 
$
269,584

Net Income

 

 
17,668

 

 

 

 
17,668

Other Comprehensive Income

 

 

 

 
4,163

 

 
4,163

Cash Dividends Paid, $.52 per Share

 

 
(7,528
)
 

 

 

 
(7,528
)
Stock Options Exercised, Net  (62,712 Shares)

 
638

 

 

 

 
687

 
1,325

Shares Issued Under the Directors’ Stock
  Plan  (3,997 Shares)

 
86

 

 

 

 
44

 
130

Shares Issued Under the Employee Stock
  Purchase Plan  (7,948 Shares)

 
163

 

 

 

 
87

 
250

Shares Issued for Dividend
  Reinvestment Plans (26,698 Shares)

 
615

 

 

 

 
289

 
904

Stock-Based Compensation Expense

 
194

 

 

 

 

 
194

Purchase of Treasury Stock
  (60,560 Shares)

 

 

 

 

 
(2,041
)
 
(2,041
)
Balance at June 30, 2019
$
19,035

 
$
316,229

 
$
39,397

 
$
(100
)
 
$
(9,647
)
 
$
(80,265
)
 
$
284,649

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-Month Period Ended June 30, 2019
 
Common
Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Unallo-cated ESOP
Shares
 
Accumu-lated
Other Com-
prehensive
Loss
 
Treasury
Stock
 
Total
Balance at March 31, 2019
$
19,035

 
$
315,262

 
$
34,231

 
$
(100
)
 
$
(11,567
)
 
$
(80,252
)
 
$
276,609

Net Income

 

 
8,934

 

 

 

 
8,934

Other Comprehensive Income

 

 

 

 
1,920

 

 
1,920

Cash Dividends Paid, $.26 per Share

 

 
(3,768
)
 

 

 

 
(3,768
)
Stock Options Exercised, Net  (36,577 Shares)

 
389

 

 

 

 
401

 
790

Shares Issued Under the Directors’ Stock
  Plan  (3,997 Shares)

 
86

 

 

 

 
44

 
130

Shares Issued Under the Employee Stock
  Purchase Plan  (4,239 Shares)

 
87

 

 

 

 
46

 
133

Shares Issued for Dividend
Reinvestment Plans (13,566 Shares)

 
306

 

 

 

 
145

 
451

Stock-Based Compensation Expense

 
99

 

 

 

 

 
99

Purchase of Treasury Stock
  (19,708 Shares)

 

 

 

 

 
(649
)
 
(649
)
Balance at June 30, 2019
$
19,035

 
$
316,229


$
39,397

 
$
(100
)
 
$
(9,647
)
 
$
(80,265
)
 
$
284,649

 
 
 
 
 
 
 
 
 
 
 
 
 
 

See Notes to Unaudited Interim Consolidated Financial Statements.


# 7





ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
 
Six-Month Period Ended June 30, 2018
 
Common
Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Unallo-cated ESOP
Shares
 
Accumu-lated
Other Com-
prehensive
Loss
 
Treasury
Stock
 
Total
Balance at December 31, 2017
$
18,481

 
$
290,219

 
$
28,818

 
$
(200
)
 
$
(8,514
)
 
$
(79,201
)
 
$
249,603

Net Income

 

 
18,261

 

 

 

 
18,261

Other Comprehensive Loss

 

 

 

 
(2,959
)
 

 
(2,959
)
Impact of the Adoption of ASU 2014-09

 

 
(102
)
 

 

 

 
(102
)
Impact of the Adoption of ASU 2016-01

 

 
331

 

 
(331
)
 

 

Cash Dividends Paid, $.485 per Share 1

 

 
(6,982
)
 

 

 

 
(6,982
)
Stock Options Exercised, Net (79,001 Shares)

 
804

 

 

 

 
888

 
1,692

Shares Issued Under the Directors’ Stock
  Plan  (2,705 Shares)

 
72

 

 

 

 
31

 
103

Shares Issued Under the Employee Stock
  Purchase Plan  (7,613 Shares)

 
167

 

 

 

 
85

 
252

Shares Issued for Dividend
  Reinvestment Plans (24,305 Shares)

 
580

 

 

 

 
276

 
856

Stock-Based Compensation Expense

 
178

 

 

 

 

 
178

Purchase of Treasury Stock
 (40,009 Shares)

 

 

 

 

 
(1,414
)
 
(1,414
)
Balance at June 30, 2018
$
18,481

 
$
292,020

 
$
40,326

 
$
(200
)
 
$
(11,804
)
 
$
(79,335
)
 
$
259,488

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-Month Period Ended June 30, 2018
 
Common
Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Unallo-cated ESOP
Shares
 
Accumu-lated
Other Com-
prehensive
Loss
 
Treasury
Stock
 
Total
Balance March 31, 2018
$
18,481

 
$
290,980

 
$
34,093

 
$
(200
)
 
$
(11,285
)
 
$
(79,335
)
 
$
252,734

Net Income

 

 
9,730

 

 

 

 
9,730

Other Comprehensive Loss

 

 

 

 
(519
)
 

 
(519
)
Cash Dividends Paid, $.242 per Share 1

 

 
(3,497
)
 

 

 

 
(3,497
)
Stock Options Exercised, Net (51,339 Shares)

 
497

 

 

 

 
585

 
1,082

Shares Issued Under the Directors’ Stock
  Plan  (2,705 Shares)

 
72

 

 

 

 
31

 
103

Shares Issued Under the Employee Stock
  Purchase Plan  (3,939 Shares)

 
91

 

 

 

 
45

 
136

Shares Issued for Dividend
Reinvestment Plans (11,846 Shares)

 
291

 

 

 

 
134

 
425

Stock-Based Compensation Expense

 
89

 

 

 

 

 
89

Purchase of Treasury Stock
 (21,294 Shares)

 

 

 

 

 
(795
)
 
(795
)
Balance at June 30, 2018
$
18,481

 
$
292,020

 
$
40,326

 
$
(200
)
 
$
(11,804
)
 
$
(79,335
)
 
$
259,488


1 Cash dividends paid per share have been adjusted for the September 27, 2018 3% stock dividend.
See Notes to Unaudited Interim Consolidated Financial Statements.




# 8



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
 
Six Months Ended June 30,
Cash Flows from Operating Activities:
2019
 
2018
Net Income
$
17,668

 
$
18,261

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
 
 
 
Provision for Loan Losses
927

 
1,375

Depreciation and Amortization
2,516

 
2,408

Net Gain on Securities Transactions
(76
)
 
(241
)
Loans Originated and Held-for-Sale
(10,310
)
 
(2,354
)
Proceeds from the Sale of Loans Held-for-Sale
9,336

 
2,198

Net Gain on the Sale of Loans
(244
)
 
(61
)
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
432

 
117

Contributions to Retirement Benefit Plans
(324
)
 
(352
)
Deferred Income Tax Benefit
(569
)
 
(261
)
Shares Issued Under the Directors’ Stock Plan
130

 
103

Stock-Based Compensation Expense
194

 
178

Tax Benefit from Exercise of Stock Options
179

 
160

Net (Increase) Decrease in Other Assets
(2,062
)
 
186

Net Increase (Decrease) in Other Liabilities
3,294

 
(673
)
Net Cash Provided By Operating Activities
21,091

 
21,044

Cash Flows from Investing Activities:
 
 
 
Proceeds from the Maturities and Calls of Securities Available-for-Sale
51,686

 
25,035

Purchases of Securities Available-for-Sale
(15,390
)
 
(56,598
)
Proceeds from the Maturities and Calls of Securities Held-to-Maturity
22,608

 
39,616

Purchases of Securities Held-to-Maturity
(2,095
)
 
(2,105
)
Net Increase in Loans
(84,695
)
 
(107,598
)
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
779

 
644

Purchase of Premises and Equipment
(4,389
)
 
(1,395
)
Proceeds from the Sale of a Subsidiary, Net

 
49

Net Decrease (Increase) in Other Investments
7,304

 
(1,140
)
Net Cash Used By Investing Activities
(24,192
)
 
(103,492
)
Cash Flows from Financing Activities:
 
 
 
Net Increase in Deposits
158,169

 
59,665

Net (Decrease) Increase in Short-Term Federal Home Loan Bank Borrowings
(151,000
)
 
31,000

Net Decrease in Short-Term Borrowings
(3,510
)
 
(4,718
)
Finance Lease Payments
(12
)
 

Repayments of Federal Home Loan Bank Term Advances
(15,000
)
 
(10,000
)
Purchase of Treasury Stock
(2,041
)
 
(1,414
)
Stock Options Exercised, Net
1,325

 
1,692

Shares Issued Under the Employee Stock Purchase Plan
250

 
252

Shares Issued for Dividend Reinvestment Plans
904

 
856

Cash Dividends Paid
(7,528
)
 
(6,982
)
Net Cash (Used) Provided By Financing Activities
(18,443
)
 
70,351

Net Decrease in Cash and Cash Equivalents
(21,544
)
 
(12,097
)
Cash and Cash Equivalents at Beginning of Period
84,239

 
72,838

Cash and Cash Equivalents at End of Period
$
62,695

 
$
60,741

 
 
 
 
Supplemental Disclosures to Statements of Cash Flow Information:
 
 
 
Interest on Deposits and Borrowings
$
9,990

 
$
4,530

Income Taxes
5,031

 
5,294

Non-cash Investing and Financing Activity:
 
 
 
Transfer of Loans to Other Real Estate Owned and Repossessed Assets
1,098

 
402


See Notes to Unaudited Interim Consolidated Financial Statements.

# 9



NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1.     ACCOUNTING POLICIES

In the opinion of the management of Arrow Financial Corporation (Arrow, the Company, we, or us), the accompanying unaudited interim consolidated financial statements contain all of the adjustments necessary to present fairly the financial position as of June 30, 2019, December 31, 2018 and June 30, 2018; the results of operations for the three-month periods ended June 30, 2019 and 2018; the consolidated statements of comprehensive income for the three-month periods ended June 30, 2019 and 2018; the changes in stockholders' equity for the three-month and six-month periods ended June 30, 2019 and 2018; and the cash flows for the six-month periods ended June 30, 2019 and 2018. All such adjustments are of a normal recurring nature.

Management’s Use of Estimates -The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period.  Our most significant estimate is the allowance for loan losses. Other estimates include the evaluation of other-than-temporary impairment of investment securities, goodwill impairment, pension and other postretirement liabilities and an analysis of a need for a valuation allowance for deferred tax assets. Actual results could differ from those estimates.
A material estimate that is particularly susceptible to significant change in the near term is the allowance for loan losses.  In connection with the determination of the allowance for loan losses, management obtains appraisals for properties.  The allowance for loan losses is management’s best estimate of probable loan losses incurred as of the balance sheet date.  While management uses available information to recognize losses on loans, future adjustments to the allowance for loan losses may be necessary based on changes in economic conditions.  
The unaudited interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements of Arrow for the year ended December 31, 2018 included in Arrow's Annual Report on Form 10-K for the year ended December 31, 2018.

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in the first six months of 2019:

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-08 "Receivables-Nonrefundable Fees and Other Costs" which amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under United States generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard was effective in the first quarter of 2019 and did not have a material impact on its financial position or the results of operations in the current quarter or in future periods.
In February 2016, the FASB issued ASU 2016-02, "Leases" (Topic 842) which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): "Land Easement Practical Expedient for Transition to Topic 842". In July 2018, the FASB issued ASU 2018-10 "Codification Improvements to Topic 842, Leases" which provided clarification on certain components of the original guidance, including that the rate implicit in the lease cannot be less than zero. Also in July 2018, the FASB issued ASU 2018-11 "Targeted Improvements" to Leases (Topic 842) which amends the original guidance to allow for the adoption of this standard to be applied retrospectively at the beginning of the period of adoption, which was January 1, 2019 for Arrow, without revising prior comparative periods.
The Company adopted this standard as of January 1, 2019 using the effective date method, also known as the modified retrospective method, with the cumulative-effect adjustment recorded at the beginning of the period of adoption. As a result of this adoption, the Company's assets increased $7.9 million and the Company's liabilities increased $8.0 million with no adjustment required to retained earnings and no material impact to the Consolidated Statements of Income.
Practical Expedients Elected At Adoption: The package of practical expedients were elected that did not require the Company to reassess whether an existing contract contains a lease, to reassess existing leases between operating leases and finance leases and to not reassess initial direct costs for any existing leases. These practical expedients were applied together. In addition, the Company also elected a practical expedient, which was required to be applied consistently to all of its leases, to use hindsight in determining the lease term when considering lessee options to extend or terminate the lease and in assessing impairment in the right-of-use asset.
Accounting Policy Elections: The Company also made two accounting policy elections related to the adoption of this standard. The first is a determination not to separate lease and non-lease components and account for the resulting combined component as a single lease component. The second election is to account for short-term leases, those leases with a "lease term" of twelve months or less, like an operating lease under current GAAP.
Determination of the Discount Rate to Calculate the Lease Liability: Since the Company was unable to determine the rate implicit in its leases, the secured borrowing rate from the Federal Home Loan Bank of New York as of the January 1, 2019 adoption date was utilized for existing leases for the effective lease term beginning with the effective date of each existing lease. The expected expiration date of each lease was determined on a lease-by-lease basis based on the availability of renewal options in the lease contracts, the amount of leasehold improvements at each location, total branch deposits at each location in addition to the feasibility of growth potential at each location. A similar process is followed to determine the expected lease expiration date for all leases executed subsequent to the January 1, 2019 adoption date.


# 10




The following accounting standards have been issued and will become effective for the Company at a future date:

In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" (Topic 326) which will change the way financial entities measure expected credit losses for financial assets, primarily loans. Under this ASU, the "incurred loss" model will be replaced with an "expected loss" model which will recognize losses over the life of the instrument and requires consideration of a broader range of reasonable and supportable information. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under this ASU, the amount of the credit loss is carried as a valuation allowance and can be reversed. The standard also requires expanded credit quality disclosures. In April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments," which clarifies that the estimate of expected credit losses should include expected recoveries of financial assets, and that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Company's loan terms for contractual extensions and renewal options are unconditionally cancellable by the Company (that is, the Company has no obligation to extend or renew existing loans), and therefore are not considered in measuring expected credit losses.
For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new current expected credit loss (CECL) methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The Company has continued its implementation efforts with the development and testing of various methods within its core model, and has tentatively identified the discounted cash flow method for determining losses for the commercial loan portfolios and the residential real estate portfolios, and the vintage method for the consumer indirect loan portfolio. Based on further testing, these methods may change prior to adoption. As a result of analyses performed, including the availability of future economic data, the Company plans to utilize an 18-month reasonable and supportable forecast period. The Company has identified the economic data that best correlates with expected loan losses through the use of various regression analyses of historical economic information and loan losses. The Company continues to monitor new regulatory guidance and is updating relevant internal controls and processes. The adoption of this standard will likely have the effect of increasing the allowance for loan and lease losses and reducing shareholders' equity, the extent of which will depend upon the nature and characteristics of the Company's loan portfolio and economic conditions and forecasts at the adoption date. The Company expects to remain a well-capitalized financial institution under current regulatory calculations.     

In August 2018, the FASB issued ASU 2018-13 "Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" which as part of its disclosure framework, the FASB has eliminated, amended and added disclosure requirements for fair value measurements. The following disclosure requirements were eliminated: Amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy of the timing of transfers between levels of the fair value hierarchy; the valuation processes for Level 3 fair value measurements. For public companies such as Arrow, the following new disclosures will be required: Changes in unrealized gains and losses for the period included in other comprehensive income (OCI); the range and weighted average of significant unobservable inputs used; alternatively, a company may choose to disclose other quantitative information if it determines that it is a more reasonable and rational method that reflects the distribution of unobservable inputs used. For Arrow, the standard becomes effective in the first quarter of 2020. The Company does not expect that the adoption of this change in fair value disclosure will have a material impact on its financial position or the results of operations in periods subsequent to its adoption.

In August 2018, the FASB issued ASU 2018-14 "Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" which applies to all companies that provide defined benefit pension or other postretirement benefit plans for their employees. Certain disclosure requirements have been eliminated such as reporting the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next year, and reporting the effects of a one-percentage-point change in the assumed healthcare cost trend rate on the aggregate of the service cost and interest cost components of net periodic benefit cost and on the benefit obligation for postretirement healthcare benefits. New required disclosures for reporting the weighted-average interest rate used to credit cash balance and similar plans that have a promised interest credit, the reasons for significant gains and losses affecting benefit obligations and other requirements for reporting aggregate information related to pension plans. For Arrow, the standard becomes effective at December 31, 2020. The Company does not expect that the adoption of this change affecting defined benefit plan disclosures will have a material impact on its financial position or the results of operations.

In August 2018, the FASB issued ASU 2018-15 "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" which will require companies to defer potentially significant, specified implementation costs incurred in a cloud computing arrangement that are often expensed under current US GAAP. For Arrow, the standard becomes effective at January 1, 2020. The Company is in the process of assessing the impact of this new accounting standard on its financial position and the results of operations in periods subsequent to its adoption.



# 11



Note 2.    INVESTMENT SECURITIES (In Thousands)

The following table is the schedule of Available-For-Sale Securities at June 30, 2019, December 31, 2018 and June 30, 2018:
Available-For-Sale Securities
 
 
U.S. Government & Agency
Obligations
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Corporate
and Other
Debt
Securities
 
Total
Available-
For-Sale
Securities
June 30, 2019
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
17,506

 
$
965

 
$
266,235

 
$
1,000

 
$
285,706

Available-For-Sale Securities,
  at Fair Value
 
17,524

 
967

 
266,587

 
800

 
285,878

Gross Unrealized Gains
 
31

 
2

 
1,293

 

 
1,326

Gross Unrealized Losses
 
13

 

 
941

 
200

 
1,154

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
246,202

 
 
 
 
 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Amortized Cost:
 
 
 
 
 
 
 
 
 
 
Within One Year
 
$
12,503

 
$
226

 
$
267

 
$

 
$
12,996

From 1 - 5 Years
 
5,003

 
299

 
165,852

 

 
171,154

From 5 - 10 Years
 

 

 
75,603

 

 
75,603

Over 10 Years
 

 
440

 
24,513

 
1,000

 
25,953

 
 
 
 
 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Fair Value:
 
 
 
 
 
 
 
 
 
 
Within One Year
 
$
12,490

 
$
229

 
$
268

 
$

 
$
12,987

From 1 - 5 Years
 
5,034

 
298

 
166,178

 

 
171,510

From 5 - 10 Years
 

 

 
75,538

 

 
75,538

Over 10 Years
 

 
440

 
24,603

 
800

 
25,843

 
 
 
 
 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
35

 
$

 
$
24,948

 
$

 
$
24,983

12 Months or Longer
 
12,454

 

 
130,229

 
800

 
143,483

Total
 
$
12,489

 
$

 
$
155,177

 
$
800

 
$
168,466

Number of Securities in a
  Continuous Loss Position
 
2

 

 
61

 
1

 
64

 
 
 
 
 
 
 
 
 
 
 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$

 
$

 
$
234

 
$

 
$
234

12 Months or Longer
 
13

 

 
707

 
200

 
920

Total
 
$
13

 
$

 
$
941

 
$
200

 
$
1,154

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
  at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
17,506

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
17,524

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
67,760

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
67,613

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
198,475

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
198,974

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

# 12



Available-For-Sale Securities
 
 
U.S. Government & Agency
Obligations
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Corporate
and Other
Debt
Securities
 
Total
Available-
For-Sale
Securities
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
47,071

 
$
1,193

 
$
273,227

 
$
1,000

 
$
322,491

Available-For-Sale Securities,
  at Fair Value
 
46,765

 
1,195

 
268,775

 
800

 
317,535

Gross Unrealized Gains
 

 
2

 
288

 

 
290

Gross Unrealized Losses
 
306

 

 
4,740

 
200

 
5,246

Available-For-Sale Securities,
  Pledged as Collateral,
  at Fair Value
 
 
 
 
 
 
 
 
 
236,163

 
 
 
 
 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$

 
$

 
$
107,550

 
$

 
$
107,550

12 Months or Longer
 
46,765

 

 
124,627

 
800

 
172,192

Total
 
$
46,765

 
$

 
$
232,177

 
$
800

 
$
279,742

Number of Securities in a
  Continuous Loss Position
 
10

 

 
86

 
1

 
97

 
 
 
 
 
 
 
 
 
 
 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$

 
$

 
$
841

 
$

 
$
841

12 Months or Longer
 
306

 

 
3,899

 
200

 
4,405

Total
 
$
306

 
$

 
$
4,740

 
$
200

 
$
5,246

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
  at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
47,071

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
46,765

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
72,095

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
71,800

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
201,132

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
196,975

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

# 13



Available-For-Sale Securities
 
 
U.S. Government & Agency
Obligations
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Corporate
and Other
Debt
Securities
 
Total
Available-
For-Sale
Securities
June 30, 2018
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
60,199

 
$
3,377

 
$
267,113

 
$
1,000

 
$
331,689

Available-For-Sale Securities,
  at Fair Value
 
59,615

 
3,383

 
261,589

 
800

 
325,387

Gross Unrealized Gains
 

 
6

 
332

 

 
338

Gross Unrealized Losses
 
584

 

 
5,856

 
200

 
6,640

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
282,481

 
 
 
 
 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
17,218

 
$
1,797

 
$
144,265

 
$

 
$
163,280

12 Months or Longer
 
42,397

 

 
72,209

 
800

 
115,406

Total
 
$
59,615

 
$
1,797

 
$
216,474

 
$
800

 
$
278,686

Number of Securities in a
  Continuous Loss Position
 
14

 
6

 
79

 
1

 
100

 
 
 
 
 
 
 
 
 
 
 
Unrealized Losses on Securities
  in a Continuous Loss Position:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
297

 
$

 
$
2,409

 
$

 
$
2,706

12 Months or Longer
 
287

 

 
3,447

 
200

 
3,934

Total
 
$
584

 
$

 
$
5,856

 
$
200

 
$
6,640

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
60,199

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
59,615

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
68,030

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
68,083

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
199,083

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
193,506

 
 
 
 



# 14




The following table is the schedule of Held-To-Maturity Securities at June 30, 2019, December 31, 2018 and June 30, 2018:
Held-To-Maturity Securities
 
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Total
Held-To
Maturity
Securities
June 30, 2019
 
 
 
 
 
 
Held-To-Maturity Securities,
  at Amortized Cost
 
$
220,529

 
$
42,012

 
$
262,541

Held-To-Maturity Securities,
  at Fair Value
 
223,654

 
42,414

 
266,068

Gross Unrealized Gains
 
3,206

 
415

 
3,621

Gross Unrealized Losses
 
81

 
13

 
94

Held-To-Maturity Securities,
  Pledged as Collateral
 
 
 
 
 
251,639

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Amortized Cost:
 
 
 
 
 
 
Within One Year
 
$
24,060

 
$
1,884

 
$
25,944

From 1 - 5 Years
 
114,782

 
40,128

 
154,910

From 5 - 10 Years
 
80,037

 

 
80,037

Over 10 Years
 
1,650

 

 
1,650

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Fair Value:
 
 
 
 
 
 
Within One Year
 
$
24,109

 
$
1,907

 
$
26,016

From 1 - 5 Years
 
116,273

 
40,507

 
156,780

From 5 - 10 Years
 
81,593

 

 
81,593

Over 10 Years
 
1,679

 

 
1,679

 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
Less than 12 Months
 
$
159

 
$
(67
)
 
$
92

12 Months or Longer
 
14,374

 
1,711

 
16,085

Total
 
$
14,533

 
$
1,644

 
$
16,177

 
 
 
 
 
 
 
Number of Securities in a
  Continuous Loss Position
 
36

 
1

 
37

 
 
 
 
 
 
 
Unrealized Losses on Securities
   in a Continuous Loss Position:
 
 
 
 
 
 
Less than 12 Months
 
$

 
$

 
$

12 Months or Longer
 
81

 
13

 
94

Total
 
$
81

 
$
13

 
$
94

 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
$
1,942

 
 
US Government Agency
  Securities, at Fair Value
 
 
 
1,948

 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
40,070

 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
40,466

 
 
 
 
 
 
 
 
 

# 15



Held-To-Maturity Securities
 
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Total
Held-To
Maturity
Securities
December 31, 2018
 
 
 
 
 
 
Held-To-Maturity Securities,
  at Amortized Cost
 
$
235,782

 
$
47,694

 
$
283,476

Held-To-Maturity Securities,
  at Fair Value
 
233,359

 
46,979

 
280,338

Gross Unrealized Gains
 
486

 

 
486

Gross Unrealized Losses
 
2,909

 
715

 
3,624

Held-To-Maturity Securities,
  Pledged as Collateral
 
 
 
 
 
266,341

 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
Less than 12 Months
 
$
32,093

 
$
33,309

 
$
65,402

12 Months or Longer
 
110,947

 
13,670

 
124,617

Total
 
$
143,040

 
$
46,979

 
$
190,019