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LEASES
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
LEASES
12. LEASES

We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability.
Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:

Three Months Ended
March 31,
(dollars in thousands)20212020
Lease cost:
Operating lease cost$1,571 $1,653 
Variable lease cost720 678 
Less: sublease income— (12)
Total lease cost$2,291 $2,319 
Other information:
Operating cash flows from operating leases$(1,599)$(1,594)
Weighted-average remaining lease term - operating leases 11.78 years13.36 years
Weighted-average discount rate - operating leases3.89 %3.92 %

The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter:

(dollars in thousands)
Year Ending December 31, Undiscounted Cash FlowsLease Liability ExpenseLease Liability Reduction
2021 (remainder)$4,809 $1,285 $3,524 
20225,954 1,560 4,394 
20235,396 1,405 3,991 
20245,091 1,262 3,829 
20254,795 1,117 3,678 
20264,551 978 3,573 
Thereafter27,536 4,492 23,044 
Total $58,132 $12,099 $46,033 

In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:

Three Months Ended
March 31,
(dollars in thousands)20212020
Total rental income recognized$520 $533 
Based on the Company's leases as lessor as of March 31, 2021, estimated lease payments for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows:

(dollars in thousands)
Year Ending December 31,
2021 (remainder)$2,046 
20221,575 
2023582 
2024222 
2025119 
202672 
Thereafter106 
Total $4,722 
LEASES
12. LEASES

We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability.
Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:

Three Months Ended
March 31,
(dollars in thousands)20212020
Lease cost:
Operating lease cost$1,571 $1,653 
Variable lease cost720 678 
Less: sublease income— (12)
Total lease cost$2,291 $2,319 
Other information:
Operating cash flows from operating leases$(1,599)$(1,594)
Weighted-average remaining lease term - operating leases 11.78 years13.36 years
Weighted-average discount rate - operating leases3.89 %3.92 %

The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter:

(dollars in thousands)
Year Ending December 31, Undiscounted Cash FlowsLease Liability ExpenseLease Liability Reduction
2021 (remainder)$4,809 $1,285 $3,524 
20225,954 1,560 4,394 
20235,396 1,405 3,991 
20245,091 1,262 3,829 
20254,795 1,117 3,678 
20264,551 978 3,573 
Thereafter27,536 4,492 23,044 
Total $58,132 $12,099 $46,033 

In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:

Three Months Ended
March 31,
(dollars in thousands)20212020
Total rental income recognized$520 $533 
Based on the Company's leases as lessor as of March 31, 2021, estimated lease payments for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows:

(dollars in thousands)
Year Ending December 31,
2021 (remainder)$2,046 
20221,575 
2023582 
2024222 
2025119 
202672 
Thereafter106 
Total $4,722