PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

NOTE 11—PREMISES AND EQUIPMENT

Premises and equipment consists of the following:

	December 31,
	2013		2012
	(In thousands)
Land	$	15,074	$	15,545
Office buildings	157,166		82,418
Leasehold improvements	26,195		29,635
Furniture, fixtures and equipment	49,043		44,122
Total cost	247,478		171,720
Accumulated depreciation and amortization	(69,768)		(64,203)
Net book value	$	177,710	$	107,517

Depreciation expense on premises and equipment was $13.4 million, $13.2 million and $12.1 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The net increase in premises and equipment of $70.2 million during the year ended December 31, 2013 was primarily due to the purchase of the Company’s corporate office located in Pasadena, California.

Capitalized assets are depreciated or amortized on a straight-line basis in accordance with the estimated useful life for each fixed asset class. The estimated useful life for furniture and fixtures is seven years, office equipment is for five years, and twenty-five years for buildings and improvements. Leasehold improvements are amortized over the shorter of term of the lease or useful life.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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