Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Year-end premises and equipment were as follows:



	2018			2017
Land	$	104,045		$	107,249
Buildings	373,276			379,829
Furniture and equipment	196,871			179,424
Leasehold improvements	83,320			74,314
Construction in progress	45,456			11,107
	802,968			751,923
Less accumulated depreciation and amortization	(250,638		)	(230,965		)
Total premises and equipment, net	$	552,330		$	520,958

Depreciation and amortization of premises and equipment totaled $37.2 million in 2018, $36.3 million in 2017 and $36.0 million in 2016.

Comprehensive Development Agreement. In July 2015, we entered into a comprehensive development agreement with the City of San Antonio and a third party controlled by one of our directors 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 expected to occur in second quarter of 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. The deferred gain totaled $1.4 million at December 31, 2018 and $4.2 million at December 31, 2017, and will be amortized into income over the term of the lease. During 2018 and 2017, amortization of the deferred gain totaled $2.8 million and $2.9 million, respectively. 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.