Premises and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment and Lease Commitments

Year-end premises and equipment were as follows:


	2021		2020
Land	$	152,219	$	128,739
Buildings	495,903		458,693
Technology, furniture and equipment	256,323		243,395
Leasehold improvements	192,207		183,827
Construction and projects in progress	14,513		41,202
Lease right-of-use assets	281,438		292,087
	1,392,603		1,347,943
Less accumulated depreciation and amortization	(342,272)		(302,365)
Total premises and equipment, net	$	1,050,331	$	1,045,578

Depreciation of premises and equipment totaled $55.1 million in 2021, $49.9 million 2020 and $41.0 million in 2019.

Lease Commitments. We lease certain office facilities and office equipment under operating leases. Rent expense for all operating leases totaled $45.6 million in 2021, $46.0 million in 2020 and $42.1 million in 2019. 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 2021 and 2020 were as follows:


	2021		2020
Amortization of lease right-of-use assets	$	32,811	$	32,772
Short-term lease expense	1,595		1,799
Non-lease components (including taxes, insurance, common maintenance, etc.)	11,203		11,396
Total	$	45,609	$	45,967

Right-of-use lease assets totaled $281.4 million and $292.1 million at December 31, 2021 and 2020, respectively, and are reported as a component of premises and equipment on our accompanying consolidated balance sheets. The related lease liabilities totaled $313.4 million and $323.0 million at December 31, 2021 and 2020, 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 $32.1 million during 2021 and $31.6 million during 2020. 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, 2021:


Future lease payments
2022	$	32,222
2023	31,458
2024	29,398
2025	28,253
2026	27,833
Thereafter	245,819
Total undiscounted operating lease liability	394,983
Imputed interest	81,579
Total operating lease liability included in the accompanying balance sheet	$	313,404
Weighted-average lease term in years	14.73
Weighted-average discount rate	3.05%

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 $322 thousand in 2021, $9.8 million in 2020 and $5.9 million in 2019. The decrease in these lease payments during 2021 was the result of a director who did not stand for re-election and who has a controlling interest in the entity from which we lease our headquarters building. This lease originally commenced during the second quarter of 2019 and 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 the aforementioned director.