Premises and Equipment and Assets Held for Sale

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment and Assets Held for Sale

Note 9—Premises and Equipment and Assets Held for Sale

Classifications of premises and equipment as of December 31, 2021 and 2020 and were as follows:

	2021			2020
Premises	$	43,785		$	55,704
Furniture, fixtures and equipment		15,369			17,806
Leasehold improvements		5,843			4,984
Total cost		64,997			78,494
Less accumulated depreciation and amortization and impairment		(33,141	)		(33,967	)
Net book value of premises, furniture, fixtures, equipment, and leasehold improvements		31,856			44,527
Construction in progress		355			682
Land		30,337			41,519
Premises and equipment, net	$	62,548		$	86,728

Depreciation and amortization expense related to premises and equipment for the years ended December 31, 2021, 2020 and 2019 was $6.0 million, $6.5 million and $6.4 million, respectively. Refer to Note 10—Leases for additional discussion related to operating lease commitments.

During 2019, two branches were closed and transferred to assets held for sale and two former branch locations were sold. In 2020, 15 branches were closed and consolidated and one piece of vacant land and two additional branches were transferred to assets held for sale and one former branch location was sold. During 2021, two branches were removed from retail operations but remain open as lending offices. Additionally, one piece of vacant land, one piece of vacant land/vacant single-family residence and eight branches were transferred to assets held for sale. One piece of vacant land/vacant single-family residence and 10 former branch locations were sold.

During the year ended December 31, 2021, impairment losses of $2.2 million were recognized on premises and are reflected in other non-interest expense.

Branches owned by the Company and actively marketed for sale are transferred to assets held for sale based on the lower of carrying value or fair value, less estimated costs to sell. Assets are considered held for sale when management has approved the sale of the assets following a branch closure or other events. The following table presents the change in assets held for sale for the years ended December 31, 2021, 2020, and 2019:

	2021			2020			2019
Beginning balance	$	13,023		$	15,362		$	14,489
Transfers in		16,870			3,863			2,733
Proceeds from sales		(9,040	)		(1,434	)		(1,373	)
Net gains on sales		632			1			82
Impairment loss		(12,332	)		(4,769	)		(569	)
Ending balance	$	9,153		$	13,023		$	15,362