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OPERATING LEASES
 12 Months Ended
Dec. 31, 2024
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 are summarized below for the periods presented:
Year Ended December 31,
(Dollars in thousands)202420232022
Lease cost:
Operating lease cost$5,233 $5,108 $5,495 
Variable lease cost3,229 3,751 3,278 
Less: sublease income— (34)(48)
Total lease cost$8,462 8,825 8,725 
Other information:
Operating cash flows from operating leases$(5,073)$(5,095)$(5,896)
Weighted-average remaining lease term - operating leases 10.25 years10.64 years11.22 years
Weighted-average discount rate - operating leases4.07 %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 FlowsLease Liability ExpenseLease Liability Reduction
2025$5,048 $1,210 $3,838 
20265,002 1,065 3,937 
20274,199 926 3,273 
20283,443 811 2,632 
20293,062 710 2,352 
Thereafter18,957 2,964 15,993 
Total $39,711 $7,686 $32,025 

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)202420232022
Total rental income recognized$2,059 2,132 2,228 

Based on the Company's leases as lessor as of December 31, 2024, estimated lease payments for the next five succeeding fiscal years and all years thereafter are as follows:

(Dollars in thousands)
Year Ending December 31,
2025$1,441 
20261,289 
20271,170 
2028716 
2029640 
Thereafter1,294 
Total$6,550 
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 are summarized below for the periods presented:
Year Ended December 31,
(Dollars in thousands)202420232022
Lease cost:
Operating lease cost$5,233 $5,108 $5,495 
Variable lease cost3,229 3,751 3,278 
Less: sublease income— (34)(48)
Total lease cost$8,462 8,825 8,725 
Other information:
Operating cash flows from operating leases$(5,073)$(5,095)$(5,896)
Weighted-average remaining lease term - operating leases 10.25 years10.64 years11.22 years
Weighted-average discount rate - operating leases4.07 %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 FlowsLease Liability ExpenseLease Liability Reduction
2025$5,048 $1,210 $3,838 
20265,002 1,065 3,937 
20274,199 926 3,273 
20283,443 811 2,632 
20293,062 710 2,352 
Thereafter18,957 2,964 15,993 
Total $39,711 $7,686 $32,025 

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)202420232022
Total rental income recognized$2,059 2,132 2,228 

Based on the Company's leases as lessor as of December 31, 2024, estimated lease payments for the next five succeeding fiscal years and all years thereafter are as follows:

(Dollars in thousands)
Year Ending December 31,
2025$1,441 
20261,289 
20271,170 
2028716 
2029640 
Thereafter1,294 
Total$6,550