Premises and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Year-end premises and equipment were as follows:



	2016			2015
Land	$	106,505		$	111,925
Buildings	361,573			365,051
Furniture and equipment	167,723			136,983
Leasehold improvements	67,540			64,446
Construction in progress	19,508			81,991
	722,849			760,396
Less accumulated depreciation and amortization	(197,028		)	(201,272		)
Total premises and equipment, net	$	525,821		$	559,124

Depreciation and amortization of premises and equipment totaled $36.0 million in 2016, $28.5 million in 2015 and $23.5 million in 2014.

Comprehensive Development Agreement. In July 2015, we entered into a comprehensive development agreement with the City of San Antonio and a third party whereby under separate agreements, (i) we sold our existing headquarters building to the City of San Antonio and other adjacent properties to the third party in the fourth quarter of 2016, (ii) the third party has agreed to build a new office building where we will be the primary tenant (the "New Frost Headquarters"), and (iii) we have agreed to lease back our existing headquarters building from the City of San Antonio until the construction of the New Frost Headquarters is complete, which is currently expected to take place in 2019. In connection with the sale and subsequent leaseback of our existing headquarters building with the City of San Antonio and the sale of other adjacent properties to the third party in the fourth quarter of 2016, we recognized a net gain totaling $10.3 million in 2016 and a deferred gain, which totaled $7.1 million at December 31, 2016, that will be amortized into income over the term of the lease. Under the comprehensive development agreement, we also agreed to sell various properties adjacent to the New Frost Headquarters to the third party in 2019. We do not expect any gains or losses that may be realized on those future sales to have a significant impact on our financial statements.