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OPERATING LEASES | 12 Months Ended
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Dec. 31, 2023
Leases, Operating [Abstract] |
OPERATING LEASES | 15. OPERATING LEASES The Company leases certain property and equipment with lease terms expiring through 2045. In some instances, a lease may contain renewal options for periods ranging from five to fifteen years. 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 any short-term leases are not included 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 periods presented:
| Year Ended December 31, |  |
(Dollars in thousands) | 2023 |  | 2022 |  |
Lease cost: |  |  |  |  |
Operating lease cost | $ | 5,108 |  |  | $ | 5,495 |  |  |
Variable lease cost | 3,751 |  |  | 3,278 |  |  |
Less: sublease income | (34) |  |  | (48) |  |  |
Total lease cost | $ | 8,825 |  |  | 8,725 |  |  |
Other information: |  |  |  |  |
Operating cash flows from operating leases | $ | (5,095) |  |  | $ | (5,896) |  |  |
Weighted-average remaining lease term - operating leases | 10.64 years |  | 11.22 years |  |
Weighted-average discount rate - operating leases | 3.96 | % |  | 3.95 | % |  |
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 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
2024 | $ | 4,284 |  |  | $ | 1,144 |  |  | $ | 3,140 |
2025 | 3,998 |  |  | 1,023 |  |  | 2,975 |
2026 | 3,935 |  |  | 908 |  |  | 3,027 |
2027 | 3,926 |  |  | 789 |  |  | 3,137 |
2028 | 3,326 |  |  | 677 |  |  | 2,649 |
Thereafter | 18,465 |  |  | 2,759 |  |  | 15,706 |
Total | $ | 37,934 |  |  | $ | 7,300 |  |  | $ | 30,634 |
In addition, the Company leases certain properties that it owns as lessor. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the periods presented:
| Year Ended December 31, |  |
(Dollars in thousands) | 2023 |  | 2022 |  |
Total rental income recognized | $ | 2,132 |  |  | 2,228 |  |  |
Based on the Company's leases as lessor as of December 31, 2023, estimated lease payments for the next five succeeding fiscal years and all years thereafter are as follows:
(Dollars in thousands) |
Year Ending December 31, |
2024 | $ | 1,257 |
2025 | 1,143 |
2026 | 998 |
2027 | 943 |
2028 | 591 |
Thereafter | 1,846 |
Total | $ | 6,778 |
OPERATING LEASES | 15. OPERATING LEASES The Company leases certain property and equipment with lease terms expiring through 2045. In some instances, a lease may contain renewal options for periods ranging from five to fifteen years. 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 any short-term leases are not included 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 periods presented:
| Year Ended December 31, |  |
(Dollars in thousands) | 2023 |  | 2022 |  |
Lease cost: |  |  |  |  |
Operating lease cost | $ | 5,108 |  |  | $ | 5,495 |  |  |
Variable lease cost | 3,751 |  |  | 3,278 |  |  |
Less: sublease income | (34) |  |  | (48) |  |  |
Total lease cost | $ | 8,825 |  |  | 8,725 |  |  |
Other information: |  |  |  |  |
Operating cash flows from operating leases | $ | (5,095) |  |  | $ | (5,896) |  |  |
Weighted-average remaining lease term - operating leases | 10.64 years |  | 11.22 years |  |
Weighted-average discount rate - operating leases | 3.96 | % |  | 3.95 | % |  |
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 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
2024 | $ | 4,284 |  |  | $ | 1,144 |  |  | $ | 3,140 |
2025 | 3,998 |  |  | 1,023 |  |  | 2,975 |
2026 | 3,935 |  |  | 908 |  |  | 3,027 |
2027 | 3,926 |  |  | 789 |  |  | 3,137 |
2028 | 3,326 |  |  | 677 |  |  | 2,649 |
Thereafter | 18,465 |  |  | 2,759 |  |  | 15,706 |
Total | $ | 37,934 |  |  | $ | 7,300 |  |  | $ | 30,634 |
In addition, the Company leases certain properties that it owns as lessor. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the periods presented:
| Year Ended December 31, |  |
(Dollars in thousands) | 2023 |  | 2022 |  |
Total rental income recognized | $ | 2,132 |  |  | 2,228 |  |  |
Based on the Company's leases as lessor as of December 31, 2023, estimated lease payments for the next five succeeding fiscal years and all years thereafter are as follows:
(Dollars in thousands) |
Year Ending December 31, |
2024 | $ | 1,257 |
2025 | 1,143 |
2026 | 998 |
2027 | 943 |
2028 | 591 |
Thereafter | 1,846 |
Total | $ | 6,778 |

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
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