Premises and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Premises and Equipment and Lease Commitments

Year-end premises and equipment were as follows:



	2019			2018
Land	$	112,818		$	104,045
Buildings	441,404			373,276
Technology, furniture and equipment	226,925			196,871
Leasehold improvements	156,144			83,320
Construction and projects in progress	44,251			45,456
Lease right-of-use assets	297,736			—
	1,279,278			802,968
Less accumulated depreciation and amortization	(267,331		)	(250,638		)
Total premises and equipment, net	$	1,011,947		$	552,330

Depreciation of premises and equipment totaled $41.0 million in 2019, $37.2 million 2018 and $36.3 million in 2017. Amortization of lease right of use-assets totaled $27.6 million in 2019.

Lease Commitments. We lease certain office facilities and office equipment under operating leases. Rent expense for all operating leases totaled $42.1 million in 2019, $31.1 million in 2018 and $30.5 million in 2017. On January 1, 2019, we adopted a new accounting standard which required the recognition of certain operating leases on our balance sheet as lease right-of-use assets (reported as component of premises and equipment) and related lease liabilities (reported as a component of accrued interest payable and other liabilities). See Note 1 - Summary of Significant Accounting Policies. Rent expense includes amounts related to items that are not included in the determination of lease right-of-use assets including expenses related to short-term leases totaling $4.6 million in 2019 and non-lease components such as taxes, insurance, and common area maintenance costs totaling $9.9 million in 2019.

Lease payments under operating leases that were applied to our operating lease liability totaled $27.5 million during 2019. The following table reconciles future undiscounted lease payments due under non-cancelable operating leases (those amounts subject to recognition) to the aggregate operating lessee lease liability as of December 31, 2019:



Future lease payments
2020	$	28,225
2021	30,813
2022	28,175
2023	26,661
2024	25,232
Thereafter	283,300
Total undiscounted operating lease liability	422,406
Imputed interest	98,718
Total operating lease liability included in the accompanying balance sheet	$	323,688
Weighted-average lease term in years	16.49
Weighted-average discount rate	3.17		%

We lease certain buildings and branch facilities from various entities which are controlled by or affiliated with certain directors. Payments related to these leases totaled $5.9 million in 2019, $464 thousand in 2018 and $1.4 million in 2017. The increase in these lease payments during 2019 compared to 2018 was primarily related to the commencement of the lease of our new headquarters building during the second quarter of 2019. We recognized a right-of-use asset totaling $121.7 million and a related lease liability totaling $121.7 million in connection with this lease. The lease was a separate agreement under a comprehensive development agreement between us, the City of San Antonio and a third party controlled by one of our directors. We sold our old headquarters building to the City of San Antonio in 2016 and leased it back during the construction period of our new headquarters building. A portion of the gain from the sale of our old headquarters building was deferred and amortized to income over the term of the lease, which ended in the second quarter of 2019. Amortization of the deferred gain totaled $1.4 million in 2019, $2.8 million in 2018 and $2.9 million in 2017.