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OPERATING LEASES
 12 Months Ended
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)20232022
Lease cost:
Operating lease cost$5,108 $5,495 
Variable lease cost3,751 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 years11.22 years
Weighted-average discount rate - operating leases3.96 %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 FlowsLease Liability ExpenseLease Liability Reduction
2024$4,284 $1,144 $3,140 
20253,998 1,023 2,975 
20263,935 908 3,027 
20273,926 789 3,137 
20283,326 677 2,649 
Thereafter18,465 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)20232022
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 
20251,143 
2026998 
2027943 
2028591 
Thereafter1,846 
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)20232022
Lease cost:
Operating lease cost$5,108 $5,495 
Variable lease cost3,751 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 years11.22 years
Weighted-average discount rate - operating leases3.96 %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 FlowsLease Liability ExpenseLease Liability Reduction
2024$4,284 $1,144 $3,140 
20253,998 1,023 2,975 
20263,935 908 3,027 
20273,926 789 3,137 
20283,326 677 2,649 
Thereafter18,465 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)20232022
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 
20251,143 
2026998 
2027943 
2028591 
Thereafter1,846 
Total $6,778