Company Quick10K Filing
Arrow Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 15 $479
10-Q 2019-11-05 Quarter: 2019-09-30
10-Q 2019-08-05 Quarter: 2019-06-30
10-Q 2019-05-09 Quarter: 2019-03-31
10-K 2019-03-08 Annual: 2018-12-31
10-Q 2018-11-08 Quarter: 2018-09-30
10-Q 2018-08-08 Quarter: 2018-06-30
10-Q 2018-05-09 Quarter: 2018-03-31
10-K 2018-03-12 Annual: 2017-12-31
10-Q 2017-11-07 Quarter: 2017-09-30
10-Q 2017-08-08 Quarter: 2017-06-30
10-Q 2017-05-09 Quarter: 2017-03-31
10-K 2017-03-14 Annual: 2016-12-31
10-Q 2016-11-09 Quarter: 2016-09-30
10-Q 2016-08-09 Quarter: 2016-06-30
10-Q 2016-05-10 Quarter: 2016-03-31
10-K 2016-03-10 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-06 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-03-13 Annual: 2014-12-31
10-Q 2014-11-07 Quarter: 2014-09-30
10-Q 2014-08-06 Quarter: 2014-06-30
10-Q 2014-05-08 Quarter: 2014-03-31
10-K 2014-03-17 Annual: 2013-12-31
10-Q 2013-11-12 Quarter: 2013-09-30
10-Q 2013-08-07 Quarter: 2013-06-30
10-Q 2013-05-09 Quarter: 2013-03-31
10-K 2013-03-15 Annual: 2012-12-31
10-Q 2012-11-08 Quarter: 2012-09-30
10-Q 2012-08-09 Quarter: 2012-06-30
10-Q 2012-05-08 Quarter: 2012-03-31
10-K 2012-03-14 Annual: 2011-12-31
10-Q 2011-11-08 Quarter: 2011-09-30
10-Q 2011-08-08 Quarter: 2011-06-30
10-Q 2011-05-10 Quarter: 2011-03-31
10-K 2011-03-10 Annual: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-Q 2010-08-04 Quarter: 2010-06-30
10-Q 2010-05-07 Quarter: 2010-03-31
10-K 2010-03-05 Annual: 2009-12-31
8-K 2020-01-28 Earnings, Exhibits
8-K 2019-10-30 Other Events, Exhibits
8-K 2019-10-22 Earnings, Exhibits
8-K 2019-08-28 Other Events, Exhibits
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 Other Events, 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
AROW 2019-09-30
Part I - Financial Information
Item 1.
Note 1. Accounting Policies
Note 2. Investment Securities (In Thousands)
Note 3. Loans (In Thousands)
Note 4. Commitments and Contingencies (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 ex15awarenessletterseptemb.htm
EX-31.1 ex311ceoq32019.htm
EX-31.2 ex312cfoq32019.htm
EX-32 ex32906cert-q32019.htm

Arrow Financial Earnings 2019-09-30

AROW 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
FLIC 527 4,202 3,811 2 0 42 92 818 0% 8.9 1%
FCBC 516 2,212 1,878 0 0 38 54 359 6.6 2%
IBCP 509 3,438 3,107 27 0 42 73 454 0% 6.2 1%
MOFG 495 4,662 4,174 0 0 32 79 748 9.4 1%
THFF 492 3,064 2,586 0 0 45 67 431 6.4 1%
MBIN 485 5,287 4,772 0 0 59 153 86 0.6 1%
AROW 479 3,006 2,721 0 0 36 68 416 6.1 1%
FISI 448 4,314 3,892 0 0 41 95 487 5.1 1%
OLBK 448 3,076 2,686 0 0 36 81 427 5.3 1%
CCBG 446 3,018 2,703 0 0 28 43 446 10.3 1%

10-Q 1 arowform10-qseptember2019.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 September 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 October 31, 2019
Common Stock, par value $1.00 per share
 
14,976,493




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)
 
September 30, 2019
 
December 31, 2018
 
September 30, 2018
ASSETS
 
 
 
 
 
Cash and Due From Banks
$
65,882

 
$
56,529

 
$
57,385

Interest-Bearing Deposits at Banks
26,416

 
27,710

 
34,910

Investment Securities:
 
 
 
 
 
Available-for-Sale
314,182

 
317,535

 
340,411

Held-to-Maturity (Approximate Fair Value of $259,128 at September 30, 2019; $280,338 at December 31, 2018; and $282,719 at September 30, 2018)
255,095

 
283,476

 
289,952

Equity Securities
1,996

 
1,774

 
1,916

Other Investments
6,627

 
15,506

 
10,866

Loans
2,335,591

 
2,196,215

 
2,126,100

Allowance for Loan Losses
(20,931
)
 
(20,196
)
 
(20,003
)
Net Loans
2,314,660

 
2,176,019

 
2,106,097

Premises and Equipment, Net
40,228

 
30,446

 
28,601

Goodwill
21,873

 
21,873

 
21,873

Other Intangible Assets, Net
1,713

 
1,852

 
1,954

Other Assets
64,150

 
55,614

 
59,255

Total Assets
$
3,112,822

 
$
2,988,334

 
$
2,953,220

LIABILITIES
 
 
 
 
 
Noninterest-Bearing Deposits
$
516,876

 
$
472,768

 
$
490,469

Interest-Bearing Checking Accounts
801,446

 
790,781

 
899,547

Savings Deposits
929,691

 
818,048

 
758,727

Time Deposits over $250,000
96,770

 
73,583

 
76,226

Other Time Deposits
269,764

 
190,404

 
182,886

Total Deposits
2,614,547

 
2,345,584

 
2,407,855

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
72,869

 
54,659

 
62,503

Federal Home Loan Bank Overnight Advances
48,000

 
234,000

 
131,000

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
5,263

 

 

Other Liabilities
29,915

 
19,507

 
22,052

Total Liabilities
2,820,594

 
2,718,750

 
2,688,410

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

 

 

Common Stock, $1 Par Value; 30,000,000 Shares Authorized at September 30, 2019 and 20,000,000 Shares Authorized at December 31, 2018 and September 30, 2018 (19,606,449 Shares Issued at September 30, 2019 and 19,035,565 at December 31, 2018 and September 30, 2018)
19,606

 
19,035

 
19,035

Additional Paid-in Capital
334,597

 
314,533

 
313,763

Retained Earnings
27,375

 
29,257

 
24,258

Unallocated ESOP Shares (5,151 Shares at September 30, 2019; 5,001 Shares at December 31, 2018 and 9,932 Shares at September 30, 2018)
(100
)
 
(100
)
 
(200
)
Accumulated Other Comprehensive Loss
(8,979
)
 
(13,810
)
 
(12,621
)
Treasury Stock, at Cost (4,632,657 Shares at September 30, 2019; 4,558,207 Shares at December 31, 2018 and 4,584,147 Shares at September 30, 2018)
(80,271
)
 
(79,331
)
 
(79,425
)
Total Stockholders’ Equity
292,228

 
269,584

 
264,810

Total Liabilities and Stockholders’ Equity
$
3,112,822

 
$
2,988,334

 
$
2,953,220

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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
INTEREST AND DIVIDEND INCOME
 
 
 
 
 
 
 
Interest and Fees on Loans
$
24,620

 
$
20,839

 
$
70,543

 
$
59,606

Interest on Deposits at Banks
182

 
182

 
572

 
474

Interest and Dividends on Investment Securities:
 
 
 
 
 
 
 
Fully Taxable
2,018

 
2,187

 
6,671

 
6,128

Exempt from Federal Taxes
1,132

 
1,287

 
3,606

 
4,295

Total Interest and Dividend Income
27,952

 
24,495

 
81,392

 
70,503

INTEREST EXPENSE
 
 
 
 
 
 
 
Interest-Bearing Checking Accounts
500

 
390

 
1,435

 
1,165

Savings Deposits
2,317

 
901

 
5,926

 
2,134

Time Deposits over $250,000
451

 
301

 
1,362

 
833

Other Time Deposits
1,255

 
370

 
3,099

 
911

Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase
28

 
15

 
75

 
47

Federal Home Loan Bank Advances
820

 
1,270

 
3,513

 
2,340

Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts
250

 
251

 
780

 
712

Interest on Financing Leases
28

 

 
71

 

Total Interest Expense
5,649

 
3,498

 
16,261

 
8,142

NET INTEREST INCOME
22,303

 
20,997

 
65,131

 
62,361

Provision for Loan Losses
518

 
586

 
1,445

 
1,961

NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
21,785

 
20,411

 
63,686

 
60,400

NONINTEREST INCOME
 
 
 
 
 
 
 
Income From Fiduciary Activities
2,212

 
2,262

 
6,571

 
7,106

Fees for Other Services to Customers
2,623

 
2,605

 
7,570

 
7,555

Insurance Commissions
1,936

 
2,024

 
5,590

 
6,119

Net Gain on Securities Transactions
146

 
114

 
222

 
355

Net Gain on Sales of Loans
257

 
54

 
501

 
115

Other Operating Income
517

 
291

 
1,020

 
900

Total Noninterest Income
7,691

 
7,350

 
21,474

 
22,150

NONINTEREST EXPENSE
 
 
 
 
 
 
 
Salaries and Employee Benefits
10,015

 
9,771

 
29,061

 
28,952

Occupancy Expenses, Net
1,324

 
1,132

 
4,023

 
3,742

Technology and Equipment Expense
3,305

 
2,759

 
9,689

 
8,306

FDIC Assessments
(480
)
 
218

 
(56
)
 
658

Other Operating Expense
2,627

 
2,146

 
7,634

 
6,516

Total Noninterest Expense
16,791

 
16,026

 
50,351

 
48,174

INCOME BEFORE PROVISION FOR INCOME TAXES
12,685

 
11,735

 
34,809

 
34,376

Provision for Income Taxes
2,618

 
2,475

 
7,074

 
6,855

NET INCOME
$
10,067


$
9,260


$
27,735


$
27,521

Average Shares Outstanding 1:
 
 
 
 
 
 

Basic
14,955

 
14,864

 
14,927

 
14,825

Diluted
14,991

 
14,956

 
14,968

 
14,914

Per Common Share:
 
 
 
 
 
 
 
Basic Earnings
$
0.67

 
$
0.62

 
$
1.86

 
$
1.85

Diluted Earnings
0.67

 
0.62

 
1.85

 
1.84


1 2018 Share and Per Share Amounts have been restated for the September 27, 2019 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net Income
$
10,067

 
$
9,260

 
$
27,735

 
$
27,521

Other Comprehensive Income (Loss), Net of Tax:
 
 
 
 
 
 
 
  Net Unrealized Securities Holding Gains (Losses)
Arising During the Period
499

 
(897
)
 
4,323

 
(4,017
)
  Amortization of Net Retirement Plan Actuarial Loss
127

 
60

 
381

 
181

  Amortization of Net Retirement Plan Prior
Service Cost
42

 
20

 
127

 
60

Other Comprehensive Income (Loss)
668

 
(817
)
 
4,831

 
(3,776
)
  Comprehensive Income
$
10,735

 
$
8,443

 
$
32,566

 
$
23,745

 
 
 
 
 
 
 
 

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)

 
Nine-Month Period Ended September 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

 

 
27,735

 

 

 

 
27,735

Other Comprehensive Income

 

 

 

 
4,831

 

 
4,831

3% Stock Dividend (570,884 Shares)
571

 
17,737

 
(18,308
)
 

 

 

 

Cash Dividends Paid, $.757 per Share

 

 
(11,309
)
 

 

 

 
(11,309
)
Stock Options Exercised, Net  (76,775 Shares)

 
802

 

 

 

 
838

 
1,640

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

 
86

 

 

 

 
44

 
130

Shares Issued Under the Employee Stock
  Purchase Plan  (11,403 Shares)

 
236

 

 

 

 
124

 
360

Shares Issued for Dividend
  Reinvestment Plans (39,078 Shares)

 
911

 

 

 

 
422

 
1,333

Stock-Based Compensation Expense

 
292

 

 

 

 

 
292

Purchase of Treasury Stock
  (70,711 Shares)

 

 

 

 

 
(2,368
)
 
(2,368
)
Balance at September 30, 2019
$
19,606

 
$
334,597

 
$
27,375

 
$
(100
)
 
$
(8,979
)
 
$
(80,271
)
 
$
292,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-Month Period Ended September 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 June 30, 2019
$
19,035

 
$
316,229

 
$
39,397

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

Net Income

 

 
10,067

 

 

 

 
10,067

Other Comprehensive Income

 

 

 

 
668

 

 
668

3% Stock Dividend (570,884 Shares)
571

 
17,737

 
(18,308
)
 

 

 

 

Cash Dividends Paid, $.252 per Share

 

 
(3,781
)
 

 

 

 
(3,781
)
Stock Options Exercised, Net  (14,063 Shares)

 
164

 

 

 

 
151

 
315

Shares Issued Under the Employee Stock
  Purchase Plan  (3,455 Shares)

 
73

 

 

 

 
37

 
110

Shares Issued for Dividend
Reinvestment Plans (12,380 Shares)

 
296

 

 

 

 
133

 
429

Stock-Based Compensation Expense

 
98

 

 

 

 

 
98

Purchase of Treasury Stock
  (10,151 Shares)

 

 

 

 

 
(327
)
 
(327
)
Balance at September 30, 2019
$
19,606

 
$
334,597


$
27,375

 
$
(100
)
 
$
(8,979
)
 
$
(80,271
)
 
$
292,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 

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)
 
Nine-Month Period Ended September 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

 

 
27,521

 

 

 

 
27,521

Other Comprehensive Loss

 

 

 

 
(3,776
)
 

 
(3,776
)
Impact of the Adoption of ASU 2014-09

 

 
(102
)
 

 

 

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

 

 
331

 

 
(331
)
 

 

3% Stock Dividend (554,264 Shares)
554

 
21,126

 
(21,680
)
 

 

 

 

Cash Dividends Paid, $.716 per Share 1

 

 
(10,630
)
 

 

 

 
(10,630
)
Stock Options Exercised, Net (91,979 Shares)

 
942

 

 

 

 
1,035

 
1,977

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

 
72

 

 

 

 
31

 
103

Shares Issued Under the Employee Stock
  Purchase Plan  (10,801 Shares)

 
247

 

 

 

 
121

 
368

Shares Issued for Dividend
  Reinvestment Plans (35,947 Shares)

 
890

 

 

 

 
412

 
1,302

Stock-Based Compensation Expense

 
267

 

 

 

 

 
267

Purchase of Treasury Stock
 (50,697 Shares)

 

 

 

 

 
(1,823
)
 
(1,823
)
Balance at September 30, 2018
$
19,035

 
$
313,763

 
$
24,258

 
$
(200
)
 
$
(12,621
)
 
$
(79,425
)
 
$
264,810

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-Month Period Ended September 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 June 30, 2018
$
18,481

 
$
292,020

 
$
40,326

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

Net Income

 

 
9,260

 

 

 

 
9,260

Other Comprehensive Loss

 

 

 

 
(817
)
 

 
(817
)
3% Stock Dividend (538,100 Shares)
554

 
21,126

 
(21,680
)
 

 

 

 

Cash Dividends Paid, $.245 per Share 1

 

 
(3,648
)
 

 

 

 
(3,648
)
Stock Options Exercised, Net (12,978 Shares)

 
138

 

 

 

 
147

 
285

Shares Issued Under the Employee Stock
  Purchase Plan  (3,188 Shares)

 
80

 

 

 

 
36

 
116

Shares Issued for Dividend
Reinvestment Plans (11,642 Shares)

 
310

 

 

 

 
136

 
446

Stock-Based Compensation Expense

 
89

 

 

 

 

 
89

Purchase of Treasury Stock
 (10,688 Shares)

 

 

 

 

 
(409
)
 
(409
)
Balance at September 30, 2018
$
19,035

 
$
313,763

 
$
24,258

 
$
(200
)
 
$
(12,621
)
 
$
(79,425
)
 
$
264,810


1 Cash dividends paid per share have been adjusted for the September 27, 2019 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)
 
Nine Months Ended September 30,
Cash Flows from Operating Activities:
2019
 
2018
Net Income
$
27,735

 
$
27,521

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
 
 
 
Provision for Loan Losses
1,445

 
1,961

Depreciation and Amortization
3,994

 
3,576

Net Gain on Securities Transactions
(222
)
 
(355
)
Loans Originated and Held-for-Sale
(20,612
)
 
(3,378
)
Proceeds from the Sale of Loans Held-for-Sale
19,424

 
3,620

Net Gain on the Sale of Loans
(501
)
 
(115
)
Net Loss on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
798

 
155

Contributions to Retirement Benefit Plans
(492
)
 
(524
)
Deferred Income Tax Benefit
(644
)
 
(389
)
Shares Issued Under the Directors’ Stock Plan
130

 
103

Stock-Based Compensation Expense
292

 
267

Tax Benefit from Exercise of Stock Options
199

 
205

Net Increase in Other Assets
(9,302
)
 
(1,030
)
Net Increase in Other Liabilities
10,480

 
1,980

Net Cash Provided By Operating Activities
32,724

 
33,597

Cash Flows from Investing Activities:
 
 
 
Proceeds from the Maturities and Calls of Securities Available-for-Sale
79,077

 
36,663

Purchases of Securities Available-for-Sale
(70,418
)
 
(84,746
)
Proceeds from the Maturities and Calls of Securities Held-to-Maturity
31,161

 
49,721

Purchases of Securities Held-to-Maturity
(3,398
)
 
(4,506
)
Net Increase in Loans
(140,360
)
 
(176,607
)
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
1,282

 
1,078

Purchase of Premises and Equipment
(6,698
)
 
(2,371
)
Proceeds from the Sale of a Subsidiary, Net

 
75

Net Decrease (Increase) in Other Investments
8,879

 
(917
)
Net Cash Used By Investing Activities
(100,475
)
 
(181,610
)
Cash Flows from Financing Activities:
 
 
 
Net Increase in Deposits
268,963

 
162,739

Net (Decrease) Increase in Short-Term Federal Home Loan Bank Borrowings
(186,000
)
 
26,000

Net Increase (Decrease) in Short-Term Borrowings
18,210

 
(2,463
)
Finance Lease Payments
(19
)
 

Repayments of Federal Home Loan Bank Term Advances
(15,000
)
 
(10,000
)
Purchase of Treasury Stock
(2,368
)
 
(1,823
)
Stock Options Exercised, Net
1,640

 
1,977

Shares Issued Under the Employee Stock Purchase Plan
360

 
368

Shares Issued for Dividend Reinvestment Plans
1,333

 
1,302

Cash Dividends Paid
(11,309
)
 
(10,630
)
Net Cash Provided By Financing Activities
75,810

 
167,470

Net Increase in Cash and Cash Equivalents
8,059

 
19,457

Cash and Cash Equivalents at Beginning of Period
84,239

 
72,838

Cash and Cash Equivalents at End of Period
$
92,298

 
$
92,295

 
 
 
 
Supplemental Disclosures to Statements of Cash Flow Information:
 
 
 
Interest on Deposits and Borrowings
$
15,329

 
$
7,946

Income Taxes
7,131

 
7,493

Non-cash Investing and Financing Activity:
 
 
 
Transfer of Loans to Other Real Estate Owned and Repossessed Assets
1,530

 
606


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 September 30, 2019, December 31, 2018 and September 30, 2018; the results of operations for the three-and nine-month periods ended September 30, 2019 and 2018; the consolidated statements of comprehensive income for the three- and nine-month periods ended September 30, 2019 and 2018; the changes in stockholders' equity for the three-month and nine-month periods ended September 30, 2019 and 2018; and the cash flows for the nine-month periods ended September 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 nine 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 or to 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 was 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 was to account for short-term leases, those leases with a "lease term" of twelve months or less, like an operating lease under current GAAP.
Determination of the Discount Rate to Calculate the Lease Liability: Since the Company was unable to determine the rate implicit in its leases, the secured borrowing rate from the Federal Home Loan Bank of New York as of the January 1, 2019 adoption date was utilized for existing leases for the effective lease term beginning with the effective date of each existing lease. The expected expiration date of each lease was determined on a lease-by-lease basis based on the availability of renewal options in the lease contracts, the amount of leasehold improvements at each location, total branch deposits at each location in addition to the feasibility of growth potential at each location. A similar process is followed to determine the expected lease expiration date for all leases executed subsequent to the January 1, 2019 adoption date. The discount rate is determined for leases executed subsequent to the January 1, 2019 adoption date based on

# 10



the expected lease term using the secured borrowing rate from the Federal Home Loan Bank of New York as of the effective date of the lease.


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. In May 2019, the FASB issued ASU 2019-05 "Targeted Transition Relief," which allows entities to irrevocably elect the fair value option for certain financial assets measured at amortized cost, not including held-to-maturity investment securities which will continue to be measured at amortized cost. This will apply to those institutions that elect the fair value option on newly originated or purchased financial assets, to avoid the possibility of dual measurement methodologies for identical or similar financial assets.
Although 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, and reverting to an historic loss rate using the straight-line method over a two year reversion 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 adoption of this standard will change the way qualitative factors are determined as compared to the current methodology used under the incurred loss model. The Company has been evaluating various methodologies and data to determine the appropriate qualitative factor loss rates that are not included in the CECL total loss computation using the above-mentioned methods, losses from the reasonable and supportable forecast and reversion process. The Company continues to monitor new regulatory guidance and is updating relevant internal controls and processes. . 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" as part of its disclosure framework, and pursuant to which 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; and 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 or, 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 currently often expensed under US GAAP. For Arrow, the standard becomes effective at January 1, 2020. The Company does not expect that the adoption of this standard will have a material impact on its financial position or 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 September 30, 2019, December 31, 2018 and September 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
September 30, 2019
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
5,003

 
$
965

 
$
306,374

 
$
1,000

 
$
313,342

Available-For-Sale Securities,
  at Fair Value
 
5,056

 
965

 
307,361

 
800

 
314,182

Gross Unrealized Gains
 
53

 

 
1,482

 

 
1,535

Gross Unrealized Losses
 

 

 
495

 
200

 
695

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
232,043

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

 
$
226

 
$
81

 
$

 
$
307

From 1 - 5 Years
 
5,003

 
299

 
184,202

 

 
189,504

From 5 - 10 Years
 

 

 
84,036

 

 
84,036

Over 10 Years
 

 
440

 
38,055

 
1,000

 
39,495

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

 
$
227

 
$
82

 
$

 
$
309

From 1 - 5 Years
 
5,056

 
299

 
185,197

 

 
190,552

From 5 - 10 Years
 

 

 
84,013

 

 
84,013

Over 10 Years
 

 
439

 
38,069

 
800

 
39,308

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

 
$

 
$
4,763

 
$

 
$
4,763

12 Months or Longer
 

 

 
114,483

 
800

 
115,283

Total
 
$

 
$

 
$
119,246

 
$
800

 
$
120,046

Number of Securities in a
  Continuous Loss Position
 

 

 
48

 
1

 
49

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

 
$

 
$
70

 
$

 
$
70

12 Months or Longer
 

 

 
425

 
200

 
625

Total
 
$

 
$

 
$
495

 
$
200

 
$
695

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
  at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
5,003

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
5,056

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
64,455

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
64,364

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
241,919

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
242,997

 
 
 
 

# 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
September 30, 2018
 
 
 
 
 
 
 
 
 
 
Available-For-Sale Securities,
  at Amortized Cost
 
$
60,135

 
$
2,545

 
$
284,236

 
$
1,000

 
$
347,916

Available-For-Sale Securities,
  at Fair Value
 
59,602

 
2,548

 
277,461

 
800

 
340,411

Gross Unrealized Gains
 

 
3

 
201

 

 
204

Gross Unrealized Losses
 
533

 

 
6,976

 
200

 
7,709

Available-For-Sale Securities,
  Pledged as Collateral
 
 
 
 
 
 
 
 
 
219,587

 
 
 
 
 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
4,831

 
$
1,120

 
$
167,718

 
$

 
$
173,669

12 Months or Longer
 
54,771

 

 
71,433

 
800

 
127,004

Total
 
$
59,602

 
$
1,120

 
$
239,151

 
$
800

 
$
300,673

Number of Securities in a
  Continuous Loss Position
 
14

 
5

 
90

 
1

 
110

 
 
 
 
 
 
 
 
 
 
 
Unrealized Losses on Securities
  in a Continuous Loss Position:
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
$
193

 
$

 
$
3,165

 
$

 
$
3,358

12 Months or Longer
 
340

 

 
3,811

 
200

 
4,351

Total
 
$
533

 
$

 
$
6,976

 
$
200

 
$
7,709

 
 
 
 
 
 
 
 
 
 
 
Disaggregated Details:
 
 
 
 
 
 
 
 
 
 
US Treasury Obligations,
at Amortized Cost
 
$

 
 
 
 
 
 
 
 
US Treasury Obligations,
at Fair Value
 

 
 
 
 
 
 
 
 
US Agency Obligations,
at Amortized Cost
 
60,135

 
 
 
 
 
 
 
 
US Agency Obligations,
at Fair Value
 
59,602

 
 
 
 
 
 
 
 
US Government Agency
  Securities, at Amortized Cost
 
 
 
 
 
$
74,160

 
 
 
 
US Government Agency
  Securities, at Fair Value
 
 
 
 
 
74,098

 
 
 
 
Government Sponsored Entity
  Securities, at Amortized Cost
 
 
 
 
 
210,076

 
 
 
 
Government Sponsored Entity
Securities, at Fair Value
 
 
 
 
 
203,363

 
 
 
 



# 14




The following table is the schedule of Held-To-Maturity Securities at September 30, 2019, December 31, 2018 and September 30, 2018:
Held-To-Maturity Securities
 
 
State and
Municipal
Obligations
 
Mortgage-
Backed
Securities
 
Total
Held-To
Maturity
Securities
September 30, 2019
 
 
 
 
 
 
Held-To-Maturity Securities,
  at Amortized Cost
 
$
215,661

 
$
39,434

 
$
255,095

Held-To-Maturity Securities,
  at Fair Value
 
219,296

 
39,832

 
259,128

Gross Unrealized Gains
 
3,669

 
408

 
4,077

Gross Unrealized Losses
 
34

 
10

 
44

Held-To-Maturity Securities,
  Pledged as Collateral
 
 
 
 
 
244,373

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Amortized Cost:
 
 
 
 
 
 
Within One Year
 
$
21,974

 
$
3,691

 
$
25,665

From 1 - 5 Years
 
112,660

 
35,743

 
148,403

From 5 - 10 Years
 
79,378

 

 
79,378

Over 10 Years
 
1,649

 

 
1,649

 
 
 
 
 
 
 
Maturities of Debt Securities,
  at Fair Value:
 
 
 
 
 
 
Within One Year
 
$
22,007

 
$
3,689

 
$
25,696

From 1 - 5 Years
 
114,246

 
36,143

 
150,389

From 5 - 10 Years
 
81,359

 

 
81,359

Over 10 Years
 
1,684

 

 
1,684

 
 
 
 
 
 
 
Securities in a Continuous
  Loss Position, at Fair Value:
 
 
 
 
 
 
Less than 12 Months
 
$
763

 
$
3,082

 
$
3,845

12 Months or Longer
 
6,764