XML 31 R20.htm IDEA: XBRL DOCUMENT v3.21.2

LEASES

9 Months Ended

Sep. 30, 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 September 30,												Nine Months Ended September 30,
(dollars in thousands)			2021						2020						2021						2020
Lease cost:
Operating lease cost			$	1,555					$	1,613					$	4,846					$	4,919
Variable lease cost			654						732						1,844						2,098
Less: sublease income			—						—						—						(15)
Total lease cost			$	2,209					$	2,345					$	6,690					$	7,002
Other information:
Operating cash flows from operating leases			$	(1,602)					$	(1,554)					$	(4,927)					$	(4,743)
Weighted-average remaining lease term - operating leases			11.70 years						12.47 years						11.70 years						12.47 years
Weighted-average discount rate - operating leases			3.92		%				3.91		%				3.92		%				3.91		%

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 Flows						Lease Liability Expense						Lease Liability Reduction
2021 (remainder)			$	1,606					$	404					$	1,202
2022			5,925						1,497						4,428
2023			5,183						1,343						3,840
2024			4,508						1,214						3,294
2025			4,195						1,088						3,107
2026			4,133						968						3,165
Thereafter			27,375						4,478						22,897
Total			$	52,925					$	10,992					$	41,933

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 September 30,												Nine Months Ended September 30,
(dollars in thousands)			2021						2020						2021						2020
Total rental income recognized			$	524					$	492					$	1,565					$	1,559

Based on the Company's leases as lessor as of September 30, 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)			$	523
2022			1,801
2023			758
2024			269
2025			137
2026			73
Thereafter			119
Total			$	3,680

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 September 30,												Nine Months Ended September 30,
(dollars in thousands)			2021						2020						2021						2020
Lease cost:
Operating lease cost			$	1,555					$	1,613					$	4,846					$	4,919
Variable lease cost			654						732						1,844						2,098
Less: sublease income			—						—						—						(15)
Total lease cost			$	2,209					$	2,345					$	6,690					$	7,002
Other information:
Operating cash flows from operating leases			$	(1,602)					$	(1,554)					$	(4,927)					$	(4,743)
Weighted-average remaining lease term - operating leases			11.70 years						12.47 years						11.70 years						12.47 years
Weighted-average discount rate - operating leases			3.92		%				3.91		%				3.92		%				3.91		%

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 Flows						Lease Liability Expense						Lease Liability Reduction
2021 (remainder)			$	1,606					$	404					$	1,202
2022			5,925						1,497						4,428
2023			5,183						1,343						3,840
2024			4,508						1,214						3,294
2025			4,195						1,088						3,107
2026			4,133						968						3,165
Thereafter			27,375						4,478						22,897
Total			$	52,925					$	10,992					$	41,933

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 September 30,												Nine Months Ended September 30,
(dollars in thousands)			2021						2020						2021						2020
Total rental income recognized			$	524					$	492					$	1,565					$	1,559

Based on the Company's leases as lessor as of September 30, 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)			$	523
2022			1,801
2023			758
2024			269
2025			137
2026			73
Thereafter			119
Total			$	3,680

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 10
-Section 55
-Paragraph 40
-Subparagraph Note 1
-URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 10
-Section 55
-Paragraph 40
-Subparagraph Note 3
-URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=77888252

+ Details

Name:	us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration