Company Quick10K Filing
Quick10K
Arrow Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$33.87 14 $490
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 2019-07-22 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
EXLS Exlservice Holdings 2,060
PAR Par Technology 392
DSPG DSP Group 344
AWRE Aware 71
TATT TAT Technologies 58
FLKS Flex Pharma 8
OCLR Oclaro 0
JDCC Deere John Capital 0
CLTH Cleantech Biofuels 0
BUKS Butler National 0
AROW 2019-03-31
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 ex15awarenesslettermarch20.htm
EX-31.1 ex311ceoq12019.htm
EX-31.2 ex312cfoq12019.htm
EX-32 ex32906cert-q12019.htm

Arrow Financial Earnings 2019-03-31

AROW 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 arowform10-qmarch2019.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 March 31, 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

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

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 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 April 30, 2019
Common Stock, par value $1.00 per share
 
14,484,215




ARROW FINANCIAL CORPORATION
FORM 10-Q
TABLE OF CONTENTS


# 2



PART I - FINANCIAL INFORMATION
Item 1.
FINANCIAL STATEMENTS
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
ASSETS
 
 
 
 
 
Cash and Due From Banks
$
36,198

 
$
56,529

 
$
29,525

Interest-Bearing Deposits at Banks
25,031

 
27,710

 
70,747

Investment Securities:
 
 
 
 
 
Available-for-Sale
298,812

 
317,535

 
305,589

Held-to-Maturity (Approximate Fair Value of $280,414 at March 31, 2019; $280,338 at December 31, 2018; and $324,937 at March 31, 2018)
279,400

 
283,476

 
330,124

Equity Securities
1,850

 
1,774

 
1,579

Other Investments
7,878

 
15,506

 
4,780

Loans
2,235,208

 
2,196,215

 
1,993,037

Allowance for Loan Losses
(20,373
)
 
(20,196
)
 
(19,057
)
Net Loans
2,214,835

 
2,176,019

 
1,973,980

Premises and Equipment, Net
34,949

 
30,446

 
27,815

Goodwill
21,873

 
21,873

 
21,873

Other Intangible Assets, Net
1,777

 
1,852

 
2,172

Other Assets
62,280

 
55,614

 
58,503

Total Assets
$
2,984,883

 
$
2,988,334

 
$
2,826,687

LIABILITIES
 
 
 
 
 
Noninterest-Bearing Deposits
$
453,089

 
$
472,768

 
$
452,347

Interest-Bearing Checking Accounts
823,301

 
790,781

 
944,161

Savings Deposits
866,861

 
818,048

 
762,220

Time Deposits over $250,000
83,834

 
73,583

 
85,403

Other Time Deposits
263,012

 
190,404

 
167,142

Total Deposits
2,490,097

 
2,345,584

 
2,411,273

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
58,407

 
54,659

 
74,957

Federal Home Loan Bank Overnight Advances
74,500

 
234,000

 

Federal Home Loan Bank Term Advances
35,000

 
45,000

 
45,000

Junior Subordinated Obligations Issued to Unconsolidated
Subsidiary Trusts
20,000

 
20,000

 
20,000

Finance Leases
2,946

 

 

Other Liabilities
27,324

 
19,507

 
22,723

Total Liabilities
2,708,274

 
2,718,750

 
2,573,953

STOCKHOLDERS’ EQUITY
 
 
 
 
 
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized

 

 

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

 
19,035

 
18,481

Additional Paid-in Capital
315,262

 
314,533

 
290,980

Retained Earnings
34,231

 
29,257

 
34,093

Unallocated ESOP Shares (5,001 Shares at March 31, 2019; 5,001 Shares at December 31, 2018 and 9,643 Shares at March 31, 2018)
(100
)
 
(100
)
 
(200
)
Accumulated Other Comprehensive Loss
(11,567
)
 
(13,810
)
 
(11,285
)
Treasury Stock, at Cost (4,556,083 Shares at March 31, 2019; 4,558,207 Shares at December 31, 2018 and 4,516,444 Shares at March 31, 2018)
(80,252
)
 
(79,331
)
 
(79,335
)
Total Stockholders’ Equity
276,609

 
269,584

 
252,734

Total Liabilities and Stockholders’ Equity
$
2,984,883

 
$
2,988,334

 
$
2,826,687

See Notes to Unaudited Interim Consolidated Financial Statements.

# 3



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
INTEREST AND DIVIDEND INCOME
 
 
 
Interest and Fees on Loans
$
22,403

 
$
18,858

Interest on Deposits at Banks
195

 
134

Interest and Dividends on Investment Securities:
 
 
 
Fully Taxable
2,369

 
1,893

Exempt from Federal Taxes
1,246

 
1,533

Total Interest and Dividend Income
26,213

 
22,418

INTEREST EXPENSE
 
 
 
Interest-Bearing Checking Accounts
482

 
387

Savings Deposits
1,601

 
522

Time Deposits over $250,000
396

 
204

Other Time Deposits
713

 
259

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
22

 
16

Federal Home Loan Bank Advances
1,594

 
414

Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts
269

 
214

Interest on Financing Leases
15

 

Total Interest Expense
5,092

 
2,016

NET INTEREST INCOME
21,121

 
20,402

Provision for Loan Losses
472

 
746

NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
20,649

 
19,656

NONINTEREST INCOME
 
 
 
Income From Fiduciary Activities
2,107

 
2,197

Fees for Other Services to Customers
2,402

 
2,380

Insurance Commissions
1,719

 
1,903

Net Gain on Securities Transactions
76

 
18

Net Gain on Sales of Loans
104

 
38

Other Operating Income
479

 
353

Total Noninterest Income
6,887

 
6,889

NONINTEREST EXPENSE
 
 
 
Salaries and Employee Benefits
9,319

 
9,369

Occupancy Expenses, Net
1,420

 
1,340

Technology and Equipment Expense
3,141

 
2,698

FDIC Assessments
212

 
217

Other Operating Expense
2,560

 
2,332

Total Noninterest Expense
16,652

 
15,956

INCOME BEFORE PROVISION FOR INCOME TAXES
10,884

 
10,589

Provision for Income Taxes
2,150

 
2,058

NET INCOME
$
8,734


$
8,531

Average Shares Outstanding 1:
 
 

Basic
14,469

 
14,354

Diluted
14,520

 
14,436

Per Common Share:
 
 
 
Basic Earnings
$
0.60

 
$
0.59

Diluted Earnings
0.60

 
0.59


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.

# 4



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
Net Income
$
8,734

 
$
8,531

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
  Net Unrealized Securities Holding Gains (Losses)
Arising During the Period
2,080

 
(2,485
)
  Amortization of Net Retirement Plan Actuarial Loss
121

 
46

  Amortization (Accretion) of Net Retirement Plan Prior
Service Cost (Credit)
42

 
(1
)
Other Comprehensive Income (Loss)
2,243

 
(2,440
)
  Comprehensive Income
$
10,977

 
$
6,091

 
 
 
 

See Notes to Unaudited Interim Consolidated Financial Statements.


# 5



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

 
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

 

 
8,734

 

 

 

 
8,734

Other Comprehensive Income

 

 

 

 
2,243

 

 
2,243

Cash Dividends Paid, $.26 per Share

 

 
(3,760
)
 

 

 

 
(3,760
)
Stock Options Exercised, Net  (26,135 Shares)

 
249

 

 

 

 
286

 
535

Shares Issued Under the Employee Stock
  Purchase Plan  (3,709 Shares)

 
76

 

 

 

 
41

 
117

Shares Issued for Dividend
  Reinvestment Plans (13,132 Shares)

 
309

 

 

 

 
144

 
453

Stock-Based Compensation Expense

 
95

 

 

 

 

 
95

Purchase of Treasury Stock
  (40,852 Shares)

 

 

 

 

 
(1,392
)
 
(1,392
)
Balance at March 31, 2019
$
19,035

 
$
315,262

 
$
34,231

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
18,481

 
290,219

 
28,818

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

Net Income

 

 
8,531

 

 

 

 
8,531

Other Comprehensive Loss

 

 

 

 
(2,440
)
 

 
(2,440
)
Impact of the Adoption of ASU 2014-09
 
 
 
 
(102
)
 
 
 
 
 
 
 
(102
)
Impact of the Adoption of ASU2016-01
 
 
 
 
331

 
 
 
(331
)
 
 
 

Cash Dividends Paid, $.243 per Share 1

 

 
(3,485
)
 

 

 

 
(3,485
)
Stock Options Exercised, Net (27,662 Shares)

 
307

 

 

 

 
303

 
610

Shares Issued Under the Employee Stock
  Purchase Plan  (3,674 Shares)

 
76

 

 

 

 
40

 
116

Shares Issued for Dividend
  Reinvestment Plans (12,459 Shares)

 
289

 

 

 

 
142

 
431

Stock-Based Compensation Expense

 
89

 

 

 

 

 
89

Purchase of Treasury Stock
 (18,715 Shares)

 

 

 

 

 
(619
)
 
(619
)
Balance at March 31, 2018
$
18,481

 
$
290,980

 
$
34,093

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


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.




# 6



ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
 
Three Months Ended March 31,
Cash Flows from Operating Activities:
2019
 
2018
Net Income
$
8,734

 
$
8,531

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
 
 
 
Provision for Loan Losses
472

 
746

Depreciation and Amortization
1,309

 
1,199

Net Gain on Securities Transactions
(76
)
 
(18
)
Loans Originated and Held-for-Sale
(4,223
)
 
(12,326
)
Proceeds from the Sale of Loans Held-for-Sale
3,718

 
12,520

Net Gain on the Sale of Loans
(104
)
 
(38
)
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
130

 
32

Contributions to Retirement Benefit Plans
(153
)
 
(134
)
Deferred Income Tax Benefit
(297
)
 
(220
)
Stock-Based Compensation Expense
95

 
89

Tax Benefit from Exercise of Stock Options
78

 
112

Net Increase in Other Assets
(1,565
)
 
(395
)
Net Increase in Other Liabilities
2,613

 
2,185

Net Cash Provided By Operating Activities
10,731

 
12,283

Cash Flows from Investing Activities:
 
 
 
Proceeds from the Maturities and Calls of Securities Available-for-Sale
21,261

 
9,380

Purchases of Securities Available-for-Sale

 
(19,979
)
Proceeds from the Maturities and Calls of Securities Held-to-Maturity
5,319

 
6,459

Purchases of Securities Held-to-Maturity
(1,457
)
 
(921
)
Net Increase in Loans
(39,545
)
 
(42,968
)
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
442

 
437

Purchase of Premises and Equipment
(2,099
)
 
(627
)
Net Decrease in Other Investments
7,628

 
5,169

Net Cash Used By Investing Activities
(8,451
)
 
(43,050
)
Cash Flows from Financing Activities:
 
 
 
Net Increase in Deposits
144,513

 
166,157

Net Decrease in Short-Term Federal Home Loan Bank Borrowings
(159,500
)
 
(105,000
)
Net Increase in Short-Term Borrowings
3,748

 
9,991

Finance Lease Payments
(4
)
 

Repayments of Federal Home Loan Bank Term Advances
(10,000
)
 
(10,000
)
Purchase of Treasury Stock
(1,392
)
 
(619
)
Stock Options Exercised, Net
535

 
610

Shares Issued Under the Employee Stock Purchase Plan
117

 
116

Shares Issued for Dividend Reinvestment Plans
453

 
431

Cash Dividends Paid
(3,760
)
 
(3,485
)
Net Cash (Used) Provided By Financing Activities
(25,290
)
 
58,201

Net (Decrease) Increase in Cash and Cash Equivalents
(23,010
)
 
27,434

Cash and Cash Equivalents at Beginning of Period
84,239

 
72,838

Cash and Cash Equivalents at End of Period
$
61,229

 
$
100,272

 
 
 
 
Supplemental Disclosures to Statements of Cash Flow Information:
 
 
 
Interest on Deposits and Borrowings
$
4,924

 
$
1,949

Income Taxes
311

 
390

Non-cash Investing and Financing Activity:
 
 
 
Transfer of Loans to Other Real Estate Owned and Repossessed Assets
728

 
270


See Notes to Unaudited Interim Consolidated Financial Statements.

# 7



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 March 31, 2019, December 31, 2018 and March 31, 2018; the results of operations for the three-month periods ended March 31, 2019 and 2018; the consolidated statements of comprehensive income for the three-month periods ended March 31, 2019 and 2018; the changes in stockholders' equity for the three-month periods ended March 31, 2019 and 2018; and the cash flows for the three-month periods ended March 31, 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 three 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.

# 8





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. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company plans on adopting the standard in the first quarter of 2020, in order to maximize the accumulation of data needed to calculate the new current expected credit loss (CECL) methodologies. The ASU describes several acceptable methodologies for calculating expected losses on a loan or a pool of loans and requires additional disclosures. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. The FASB’s Transition Research Group for credit losses still has several outstanding unresolved questions, some of which may have a significant impact on CECL calculations. The Company 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 a two-year reasonable and supportable forecast period and is in the process of identifying which economic data best correlates with expected 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.



# 9



Note 2.    INVESTMENT SECURITIES (In Thousands)

The following table is the schedule of Available-For-Sale Securities at March 31, 2019, December 31, 2018 and March 31, 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
March 31, 2019
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
35,519

 
$
1,114

 
$
263,347

 
$
1,000

 
$
300,980

Available-For-Sale Securities,
  at Fair Value
 
35,383

 
1,116

 
261,513

 
800

 
298,812

Gross Unrealized Gains
 

 
2

 
657

 

 
659

Gross Unrealized Losses
 
136

 

 
2,491

 
200

 
2,827

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
255,028

 
 
 
 
 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Amortized Cost:
 
 
 
 
 
 
 
 
 
 
Within One Year
 
$
30,516

 
$
201

 
$
494

 
$

 
$
31,211

From 1 - 5 Years
 
5,003

 
433

 
125,267

 

 
130,703

From 5 - 10 Years
 

 

 
117,616

 

 
117,616

Over 10 Years
 

 
480

 
19,970

 
1,000

 
21,450

 
 
 
 
 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Fair Value:
 
 
 
 
 
 
 
 
 
 
Within One Year
 
$
30,432

 
$
203

 
$
498

 
$

 
$
31,133

From 1 - 5 Years
 
4,951

 
433

 
124,175

 

 
129,559

From 5 - 10 Years
 

 

 
117,008

 

 
117,008

Over 10 Years
 

 
480

 
19,832

 
800

 
21,112

 
 
 
 
 
 
 
 
 
 
 
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 Treasury Obligations,
  at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
35,519

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
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
Securities, at Fair Value
 
 
 
 
 
191,479

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

# 10



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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

# 11



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, 2018
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
60,264

 
$
9,741

 
$
240,033

 
$
1,000

 
$
311,038

Available-For-Sale Securities,
  at Fair Value
 
59,657

 
9,743

 
235,389

 
800

 
305,589

Gross Unrealized Gains
 

 
7

 
347

 

 
354

Gross Unrealized Losses
 
607

 
5

 
4,991

 
200

 
5,803

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
229,857

 
 
 
 
 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
17,128

 
$
7,421

 
$
112,078

 
$

 
$
136,627

12 Months or Longer
 
42,529

 

 
80,759

 
800

 
124,088

Total
 
$
59,657

 
$
7,421

 
$
192,837

 
$
800

 
$
260,715

Number of Securities in a
  Continuous Loss Position
 
14

 
29

 
69

 
1

 
113

 
 
 
 
 
 
 
 
 
 
 
Unrealized Losses on Securities
  in a Continuous Loss Position:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
266

 
$
6

 
$
1,940

 
$

 
$
2,212

12 Months or Longer
 
341

 

 
3,050

 
200

 
3,591

Total
 
$
607

 
$
6

 
$
4,990

 
$
200

 
$
5,803

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
60,264

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
59,657

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
59,446

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
59,469

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
180,587

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
175,920

 
 
 
 



# 12




The following table is the schedule of Held-To-Maturity Securities at March 31, 2019, December 31, 2018 and March 31, 2018:
Held-To-Maturity Securities
 
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Total
Held-To
Maturity
Securities
March 31, 2019
 
 
 
 
 
 
Held-To-Maturity Securities,
  at Amortized Cost
 
$
234,454

 
$
44,946

 
$
279,400

Held-To-Maturity Securities,
  at Fair Value
 
235,576

 
44,838

 
280,414

Gross Unrealized Gains
 
1,695

 
97

 
1,792

Gross Unrealized Losses
 
573

 
205

 
778

Held-To-Maturity Securities,
  Pledged as Collateral
 
 
 
 
 
265,465

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Amortized Cost:
 
 
 
 
 
 
Within One Year
 
$
25,205

 
$

 
$
25,205

From 1 - 5 Years
 
94,100

 
44,946

 
139,046

From 5 - 10 Years
 
112,788

 

 
112,788

Over 10 Years
 
2,361

 

 
2,361

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Fair Value:
 
 
 
 
 
 
Within One Year
 
$
25,244

 
$

 
$
25,244

From 1 - 5 Years
 
94,590

 
44,838

 
139,428

From 5 - 10 Years
 
113,343

 

 
113,343

Over 10 Years
 
2,399

 

 
2,399

 
 
 
 
 
 
 
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

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

 
$

 
$

12 Months or Longer
 
573

 
205

 
778

Total
 
$
573

 
$
205

 
$
778

 
 
 
 
 
 
 
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
Securities, at Fair Value
 
 
 
42,826

 
 
 
 
 
 
 
 
 

# 13



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

 
$
47,694

 
$
283,476

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

 
46,979

 
280,338

Gross Unrealized Gains
 
486

 

 
486

Gross Unrealized Losses
 
2,909

 
715

 
3,624

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

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

 
$
33,309

 
$
65,402

12 Months or Longer
 
110,947

 
13,670

 
124,617

Total
 
$
143,040

 
$
46,979

 
$
190,019

Number of Securities in a
  Continuous Loss Position
 
411

 
47

 
458

 
 
 
 
 
 
 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
 
 
 
 
 
 
Less than 12 Months
 
$
162

 
$
456

 
$
618

12 Months or Longer
 
2,747

 
259

 
3,006

Total
 
$
2,909

 
$
715

 
$
3,624

 
 
 
 
 
 

Disaggregated Details:
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
$
2,180

 
 
US Government Agency
  Securities, at Fair Value
 
 
 
2,143

 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
45,514

 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
44,836

 
 
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
Held-To-Maturity Securities,
  at Amortized Cost
 
$
272,938

 
$
57,186

 
$
330,124

Held-To-Maturity Securities,
  at Fair Value
 
268,604

 
56,333

 
324,937

Gross Unrealized Gains
 
646

 

 
646

Gross Unrealized Losses
 
4,979

 
853

 
5,832

Held-To-Maturity Securities,
  Pledged as Collateral
 
 
 
 
 
307,273

 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
Less than 12 Months
 
$
101,695

 
$
53,076

 
$
154,771

12 Months or Longer
 
65,012

 
3,257

 
68,269

Total
 
$
166,707

 
$
56,333

 
$
223,040

Number of Securities in a
  Continuous Loss Position
 
495

 
47

 
542

 
 
 
 
 
 
 
Unrealized Losses on
  Securities in a Continuous
  Loss Position:
 
 
 
 
 
 
Less than 12 Months
 
$
1,981

 
$
767

 
$
2,748

12 Months or Longer
 
2,998

 
86

 
3,084

Total
 
$
4,979

 
$
853

 
$
5,832

 
 
 
 
 
 


# 14



Held-To-Maturity Securities
 
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Total
Held-To
Maturity
Securities
March 31, 2018
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
$
2,530

 
 
US Government Agency
  Securities, at Fair Value
 
 
 
2,483

 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
54,656

 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
53,850

 
 

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, 2019, December 31, 2018 and March 31, 2018, do not reflect any deterioration of the credit worthiness of the issuing entities.  U.S. government agency securities, including mortgage-backed securities, are all rated AAA by Moody's and AA+ by Standard and Poor's.  The state and municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured.  Obligations issued by school districts are supported by state aid.  For any non-rated municipal securities, credit analysis is performed in-house based upon data that has been submitted by the issuers to the New York State Comptroller. That analysis shows no deterioration in the credit worthiness of the municipalities.  Subsequent to March 31, 2019, there were no securities downgraded below investment grade.  
The unrealized losses on these temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities. Because we do not currently intend to sell any of our temporarily impaired securities, and because it is not more likely-than-not we would be required to sell the securities prior to recovery, the impairment is considered temporary.
Pledged securities, in the tables above, are primarily used to collateralize state and municipal deposits, as required under New York State law. A small portion of the pledged securities are used to collateralize repurchase agreements and pooled deposits of our trust customers.

The following table is the schedule of Equity Securities at March 31, 2019, December 31, 2018 and March 31, 2018:
Equity Securities
 
 
 
 
 
 
 
March 31, 2019
December 31, 2018
March 31, 2018
Equity Securities, at Fair Value
 
$1,850
$1,774
$1,579
 
 
 
 
 

The following is a summary of realized and unrealized gains and losses recognized in net income on equity securities during the three-month period ended March 31, 2019:
 
Three months ended March 31, 2019
Net Gain on Equity Securities
$
76

Less: Net gain (loss) recognized during the reporting period on equity securities sold during the period

Unrealized net gain recognized during the reporting period on equity securities still held at the reporting date
$
76

 
 

# 15



Note 3.    LOANS (In Thousands)

Loan Categories and Past Due Loans

The following table presents loan balances outstanding as of March 31, 2019, December 31, 2018 and March 31, 2018 and an analysis of the recorded investment in loans that are past due at these dates.  Generally, Arrow considers a loan past due 30 or more days when the borrower is two payments past due.
Schedule of Past Due Loans by Loan Category
 
 
 
Commercial
 
 
 
 
 
 
 
Commercial
 
Real Estate
 
Consumer
 
Residential
 
Total
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

 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Loans Past Due 30-59 Days
$
121

 
$
108

 
$
5,369

 
$
281

 
$
5,879

Loans Past Due 60-89 Days
49

 

 
2,136

 
1,908

 
4,093

Loans Past Due 90 or more Days

 
789

 
572

 
1,844

 
3,205

Total Loans Past Due
170

 
897

 
8,077

 
4,033

 
13,177

Current Loans
136,720

 
483,665

 
711,433

 
851,220

 
2,183,038

Total Loans
$
136,890

 
$
484,562

 
$
719,510

 
$
855,253

 
$
2,196,215

 
 
 
 
 
 
 
 
 
 
Loans 90 or More Days Past Due
  and Still Accruing Interest
$

 
$

 
$
144

 
$
1,081

 
$
1,225

Nonaccrual Loans
403

 
789

 
658

 
2,309

 
4,159

 
 
 
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
Loans Past Due 30-59 Days
$
45

 
$
156

 
$
3,673

 
$
1,711

 
$
5,585

Loans Past Due 60-89 Days
60

 

 
751

 
481

 
1,292

Loans Past Due 90 or more Days
41

 
807

 
252

 
321

 
1,421

Total Loans Past Due
146

 
963

 
4,676

 
2,513

 
8,298

Current Loans
127,528

 
454,095

 
621,964

 
781,152

 
1,984,739

Total Loans
$
127,674

 
$
455,058

 
$
626,640

 
$
783,665

 
$
1,993,037

 
 
 
 
 
 
 
 
 
 
Loans 90 or More Days Past Due
  and Still Accruing Interest
$

 
$

 
$

 
$

 
$

Nonaccrual Loans
652

 
807

 
441

 
2,570

 
4,470

    

The Company disaggregates its loan portfolio into the following four categories:

Commercial - The Company offers a variety of loan options to meet the specific needs of commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. These loans carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, w