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OPERATING LEASES

6 Months Ended

Jun. 30, 2025

Leases [Abstract]

LEASES

12. OPERATING LEASES

The Company leases certain land and buildings for its bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. Renewal options that are likely to be exercised 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 liabilities.

The following table presents total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate for the periods presented:

			Three Months Ended June 30,												Six Months Ended June 30,
(dollars in thousands)			2025						2024						2025						2024
Lease cost:
Operating lease cost			$	1,336					$	1,437					$	2,643					$	2,740
Variable lease cost			643						927						1,262						1,862
Total lease cost			$	1,979					$	2,364					$	3,905					$	4,602
Other information:
Operating cash flows from operating leases			$	(1,279)					$	(1,425)					$	(2,559)					$	(2,682)
Weighted-average remaining lease term - operating leases			10.0 years						10.9 years						10.0 years						10.9 years
Weighted-average discount rate - operating leases			4.13		%				4.09		%				4.13		%				4.09		%

The following table presents a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities as of June 30, 2025, for the remainder of fiscal year 2025, the next five succeeding fiscal years and all years thereafter:

(dollars in thousands)						Undiscounted Cash Flows						Lease Liability Expense						Lease Liability Reduction
Year Ending December 31,
2025 (remainder)						$	2,569					$	638					$	1,931
2026						5,168						1,151						4,017
2027						4,400						1,007						3,393
2028						3,718						884						2,834
2029						3,351						773						2,578
2030						3,378						665						2,713
Thereafter						16,963						2,448						14,515
Total						$	39,547					$	7,566					$	31,981

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

			Three Months Ended June 30,												Six Months Ended June 30,
(dollars in thousands)			2025						2024						2025						2024
Total rental income recognized			$	481					$	511					$	949					$	1,020

The following table presents estimated lease payments, based on the Company's leases as lessor as of June 30, 2025, for the remainder of fiscal year 2025, the next five succeeding fiscal years, and all years thereafter:

(dollars in thousands)
Year Ending December 31,
2025 (remainder)			$	723
2026			1,290
2027			1,171
2028			717
2029			641
2030			533
Thereafter			782
Total			$	5,857

LEASES

12. OPERATING LEASES

The Company leases certain land and buildings for its bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. Renewal options that are likely to be exercised 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 liabilities.

The following table presents total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate for the periods presented:

			Three Months Ended June 30,												Six Months Ended June 30,
(dollars in thousands)			2025						2024						2025						2024
Lease cost:
Operating lease cost			$	1,336					$	1,437					$	2,643					$	2,740
Variable lease cost			643						927						1,262						1,862
Total lease cost			$	1,979					$	2,364					$	3,905					$	4,602
Other information:
Operating cash flows from operating leases			$	(1,279)					$	(1,425)					$	(2,559)					$	(2,682)
Weighted-average remaining lease term - operating leases			10.0 years						10.9 years						10.0 years						10.9 years
Weighted-average discount rate - operating leases			4.13		%				4.09		%				4.13		%				4.09		%

The following table presents a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities as of June 30, 2025, for the remainder of fiscal year 2025, the next five succeeding fiscal years and all years thereafter:

(dollars in thousands)						Undiscounted Cash Flows						Lease Liability Expense						Lease Liability Reduction
Year Ending December 31,
2025 (remainder)						$	2,569					$	638					$	1,931
2026						5,168						1,151						4,017
2027						4,400						1,007						3,393
2028						3,718						884						2,834
2029						3,351						773						2,578
2030						3,378						665						2,713
Thereafter						16,963						2,448						14,515
Total						$	39,547					$	7,566					$	31,981

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

			Three Months Ended June 30,												Six Months Ended June 30,
(dollars in thousands)			2025						2024						2025						2024
Total rental income recognized			$	481					$	511					$	949					$	1,020

The following table presents estimated lease payments, based on the Company's leases as lessor as of June 30, 2025, for the remainder of fiscal year 2025, the next five succeeding fiscal years, and all years thereafter:

(dollars in thousands)
Year Ending December 31,
2025 (remainder)			$	723
2026			1,290
2027			1,171
2028			717
2029			641
2030			533
Thereafter			782
Total			$	5,857

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- References

No definition available.

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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

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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

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