Premises and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Premises and Equipment and Lease Commitments

Year-end premises and equipment were as follows:


	2020		2019
Land	$	128,739	$	112,818
Buildings	458,693		441,404
Technology, furniture and equipment	243,395		226,925
Leasehold improvements	183,827		156,144
Construction and projects in progress	41,202		44,251
Lease right-of-use assets	292,087		297,736
	1,347,943		1,279,278
Less accumulated depreciation and amortization	(302,365)		(267,331)
Total premises and equipment, net	$	1,045,578	$	1,011,947

Depreciation of premises and equipment totaled $49.9 million in 2020, $41.0 million 2019 and $37.2 million in 2018.

Lease Commitments. We lease certain office facilities and office equipment under operating leases. Rent expense for all operating leases totaled $46.0 million in 2020, $42.1 million in 2019 and $31.1 million in 2018. 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.

The components of total lease expense in 2020 and 2019 were as follows:


	2020		2019
Amortization of lease right-of-use assets	$	32,772	$	27,626
Short-term lease expense	1,799		4,592
Non-lease components (including taxes, insurance, common maintenance, etc.)	11,396		9,896
Total	$	45,967	$	42,114

Right-of-use lease assets totaled $292.1 million and $297.7 million at December 31, 2020 and 2019, respectively, and are reported as a component of premises and equipment on our accompanying consolidated balance sheets. The related lease liabilities totaled $323.0 million and $323.7 million at December 31, 2020 and 2019, respectively, and are reported as a component of accrued interest payable and other liabilities in the accompanying consolidated balance sheets. Lease payments under operating leases that were applied to our operating lease liability totaled $31.6 million during 2020 and $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, 2020:


Future lease payments
2021	$	32,357
2022	30,741
2023	28,927
2024	27,487
2025	26,240
Thereafter	267,707
Total undiscounted operating lease liability	413,459
Imputed interest	90,415
Total operating lease liability included in the accompanying balance sheet	$	323,044
Weighted-average lease term in years	15.57
Weighted-average discount rate	3.10%

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 $9.8 million in 2020, $5.9 million in 2019 and $464 thousand in 2018. The increase in these lease payments during the comparable periods 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 and $2.8 million in 2018.