Investment Securities

The following table is the schedule of Available-For-Sale Securities at June 30, 2025 and December 31, 2024:


Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
June 30, 2025
Available-For-Sale Securities, at Amortized Cost	$	98,179	$	25,000	$	200	$	341,829	$	6,000	$	471,208
Gross Unrealized Gains	1,934		—		—		647		39		2,620
Gross Unrealized Losses	—		(380)		—		(25,748)		(22)		(26,150)
Available-For-Sale Securities, at Fair Value	100,113		24,620		200		316,728		6,017		447,678
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											235,865

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	24,980	$	—	$	—	$	1,843	$	—	$	26,823
From 1 - 5 Years	48,762		25,000		200		184,422		1,000		259,384
From 5 - 10 Years	24,437		—		—		155,564		5,000		185,001
Over 10 Years	—		—		—		—		—		—

Maturities of Debt Securities, at Fair Value:
Within One Year	$	25,012	$	—	$	—	$	1,814	$	—	$	26,826
From 1 - 5 Years	49,926		24,620		200		172,895		978		248,619
From 5 - 10 Years	25,175		—		—		142,019		5,039		172,233
Over 10 Years	—		—		—		—		—		—

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	—	$	—	$	—	$	31,039	$	—	$	31,039
12 Months or Longer	—		24,620		—		209,621		978		235,219
Total	$	—	$	24,620	$	—	$	240,660	$	978	$	266,258
Number of Securities in a Continuous Loss Position	—		3		—		92		1		96

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	—	$	46	$	—	$	46
12 Months or Longer	—		380		—		25,702		22		26,104
Total	$	—	$	380	$	—	$	25,748	$	22	$	26,150















December 31, 2024
Available-For-Sale Securities, at Amortized Cost	$	97,985	$	70,000	$	240	$	330,448	$	1,000	$	499,673
Gross Unrealized Gains	90		32		—		29		—		151
Gross Unrealized Losses	(5)		(818)		—		(35,869)		(21)		(36,713)
Available-For-Sale Securities, at Fair Value	98,070		69,214		240		294,608		979		463,111
Available-For-Sale Securities, Pledged as Collateral, at Fair Value											181,759

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	48,370	$	—	$	—	$	66,958	$	—	$	115,328


Available-For-Sale Securities
	U.S. Treasuries		U.S. Government & Agency Obligations		State and Municipal Obligations		Mortgage- Backed Securities		Corporate and Other Debt Securities		Total Available- For-Sale Securities
12 Months or Longer	—		54,182		—		221,305		979		276,466
Total	$	48,370	$	54,182	$	—	$	288,263	$	979	$	391,794
Number of Securities in a Continuous Loss Position	2		7		—		97		1		107

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	5	$	—	$	—	$	2,037	$	—	$	2,042
12 Months or Longer	—		818		—		33,832		21		34,671
Total	$	5	$	818	$	—	$	35,869	$	21	$	36,713

There was no allowance for credit losses for the AFS debt securities portfolio at either June 30, 2025 or December 31, 2024.

The following table is the schedule of Held-To-Maturity Securities at June 30, 2025 and December 31, 2024:


Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
June 30, 2025
Held-To-Maturity Securities, at Amortized Cost	$	65,601	$	5,227	$	70,828

Gross Unrealized Losses	(664)		(137)		(801)
Held-To-Maturity Securities, at Fair Value	64,937		5,090		70,027
Held-To-Maturity Securities, Pledged as Collateral, at Carrying Value					43,201
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					42,400

Maturities of Debt Securities, at Amortized Cost:
Within One Year	$	43,149	$	536	$	43,685
From 1 - 5 Years	20,911		4,691		25,602
From 5 - 10 Years	1,541		—		1,541
Over 10 Years	—		—		—

Maturities of Debt Securities, at Fair Value:
Within One Year	$	42,869	$	530	$	43,399
From 1 - 5 Years	20,534		4,560		25,094
From 5 - 10 Years	1,534		—		1,534
Over 10 Years	—		—		—

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	205	$	—	$	205
12 Months or Longer	40,205		5,090		45,295
Total	$	40,410	$	5,090	$	45,500


Held-To-Maturity Securities
	State and Municipal Obligations		Mortgage- Backed Securities		Total Held-To Maturity Securities
Number of Securities in a Continuous Loss Position	138		16		154

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	—	$	—	$	—
12 Months or Longer	664		137		801
Total	$	664	$	137	$	801









December 31, 2024
Held-To-Maturity Securities, at Amortized Cost	$	91,829	$	6,432	$	98,261

Gross Unrealized Losses	(1,456)		(219)		(1,675)
Held-To-Maturity Securities, at Fair Value	90,373		6,213		96,586
Held-To-Maturity Securities, Pledged as Collateral, at Carrying Value					72,506
Held-To-Maturity Securities, Pledged as Collateral, at Fair Value					70,831

Securities in a Continuous Loss Position, at Fair Value:
Less than 12 Months	$	378	$	—	$	378
12 Months or Longer	68,112		6,212		74,324
Total	$	68,490	$	6,212	$	74,702
Number of Securities in a Continuous Loss Position	219		16		235

Unrealized Losses on Securities in a Continuous Loss Position:
Less than 12 Months	$	2	$	—	$	2
12 Months or Longer	1,454		219		1,673
Total	$	1,456	$	219	$	1,675

In the tables above, maturities of mortgage-backed securities are included based on their contractual lives. Actual maturities will differ because issuers may have the right to call or prepay obligations with or without prepayment penalties.

Arrow's investment policy requires that investments held in our portfolio be investment grade or better at the time of purchase. Arrow performs an analysis of the creditworthiness of municipal obligations to determine if a security is of investment grade. The analysis may include but may not solely rely upon credit analysis conducted by external credit rating agencies.

Arrow evaluates AFS debt securities in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or non-credit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized within the allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings via credit loss expense. Arrow determined that at June 30, 2025 and December 31, 2024, gross unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Arrow does not intend to sell, nor is it more likely than not that Arrow will be required to sell, any securities before recovery of its amortized cost basis, which may be at maturity. Therefore, Arrow carried no allowance for credit loss at June 30, 2025 or December 31, 2024 and there was no credit loss expense recognized by Arrow with respect to the securities portfolio during the three months ended June 30, 2025 or the year ended December 31, 2024.

Arrow's HTM debt securities are comprised of U.S. government-sponsored enterprises (GSEs) or state and municipal obligations. GSE securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long

history of zero credit loss. Arrow determined that the expected credit loss on its HTM debt portfolio was immaterial and therefore no allowance for credit loss was recorded as of June 30, 2025.

The following table is the schedule of Equity Securities at June 30, 2025 and December 31, 2024:

Equity Securities

June 30, 2025

December 31, 2024

Equity Securities, at Fair Value

$5,332

$5,055

The following is a summary of realized and unrealized gains and losses recognized in income on equity securities during the three and six month periods ended June 30, 2025 and 2024:


	Three Months Ended June 30,		For the Six Months Ended June 30,
	2025		2024		2025		2024
Net (Loss) Gain on Equity Securities	$	(40)	$	54	$	277	$	71
Less: Net gain 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	$	(40)	$	54	$	277	$	71