Fair Values (Tables)

The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement:


Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
			Fair Value Measurements at Reporting Date Using:
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Fair Value of Assets and Liabilities Measured on a Recurring Basis:
June 30, 2026
Assets:
Securities Available-for-Sale:
U.S. Treasuries	$	79,098	$	79,098	$	—	$	—
U.S. Government & Agency Obligations	24,798		—		24,798		—
State and Municipal Obligations	160		—		160		—
Mortgage-Backed Securities	367,609		—		367,609		—
Corporate and Other Debt Securities	26,537		—		26,537		—
Total Securities Available-for-Sale	498,202		79,098		419,104		—
Equity Securities	5,897		—		5,897		—
Total Securities Measured on a Recurring Basis	504,099		79,098		425,001		—
Derivative Assets	10,025		—		10,025		—
Total Measured on a Recurring Basis	$	514,124	$	79,098	$	435,026	$	—
Liabilities:
Derivative Liabilities	$	3,493	$	—	$	3,493	$	—
Total Measured on a Recurring Basis	$	3,493	$	—	$	3,493	$	—
December 31, 2025
Assets:
Securities Available-for Sale:
U.S. Treasuries	$	80,563	$	80,563	$	—	$	—
U.S. Government & Agency Obligations	24,816		—		24,816		—
State and Municipal Obligations	200		—		200		—
Mortgage-Backed Securities	366,681		—		366,681		—
Corporate and Other Debt Securities	23,608		—		23,608		—
Total Securities Available-for-Sale	495,868		80,563		415,305		—
Equity Securities	5,597		—		5,597		—
Total Securities Measured on a Recurring Basis	501,465		80,563		420,902		—
Derivative Assets	7,935		—		7,935		—
Total Measured on a Recurring Basis	$	509,400	$	80,563	$	428,837	$	—
Liabilities:
Derivative Liabilities	$	3,484	$	—	$	3,484	$	—
Total Measured on a Recurring Basis	$	3,484	$	—	$	3,484	$	—


	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Gains (Losses) Recognized in Earnings
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
June 30, 2026
Collateral Dependent Evaluated Loans	$	—	$	—	$	—	$	—
Other Real Estate Owned and Repossessed Assets, Net	363		—		—		—		363
December 31, 2025
Collateral Dependent Impaired Loans	$	—	$	—	$	—	$	—
Other Real Estate Owned and Repossessed Assets, Net	280		—		—		—		280

The following table presents a summary of the carrying amount, the fair value (exit price) or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments:


Schedule of Fair Values by Balance Sheet Grouping
					Fair Value Hierarchy
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
June 30, 2026
Cash and Cash Equivalents	$	186,788	$	186,788	$	186,788	$	—	$	—
Securities Available-for-Sale	498,202		498,202		79,098		419,104		—
Securities Held-to-Maturity	65,490		65,270		—		19,703		45,567
Equity Securities	5,897		5,897		—		5,897		—
Federal Home Loan Bank and Federal Reserve Bank Stock	18,351		18,351		—		18,351		—
Net Loans	3,460,358		3,330,075		—		—		3,330,075
Accrued Interest Receivable	16,499		16,499		—		16,499		—
Derivative Assets	10,025		10,025		—		10,025		—
Deposits	3,655,205		3,652,325		—		3,652,325		—


Borrowings	310,190		309,713		—		309,713		—
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		18,543		—		18,543		—
Accrued Interest Payable	3,842		3,842		—		3,842		—
Derivative Liabilities	3,493		3,493		—		3,493		—

December 31, 2025
Cash and Cash Equivalents	$	214,183	$	214,183	$	214,183	$	—	$	—
Securities Available-for-Sale	495,868		495,868		80,563		415,305		—
Securities Held-to-Maturity	66,975		66,569		—		37,566		29,003
Equity Securities	5,597		5,597				5,597
Federal Home Loan Bank and Federal Reserve Bank Stock	4,372		4,372		—		4,372		—
Net Loans	3,418,771		3,275,415		—		—		3,275,415
Accrued Interest Receivable	15,520		15,520		—		15,520		—
Derivative Assets	7,935		7,935		—		7,935		—
Deposits	3,939,469		3,937,255		—		3,937,255		—

Borrowings	4,265		3,998		—		3,998		—

Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	20,000		20,000		—		20,000		—
Accrued Interest Payable	4,910		4,910		—		4,910		—
Derivative Liabilities	3,484		3,484		—		3,484		—