Premises and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

The following table is a summary of premises and equipment as of the dates presented:

	December 31,
(dollars in thousands)	2016			2015
Land	$	6,397		$	8,699
Premises	52,696			52,968
Furniture and equipment	32,328			29,543
Leasehold improvements	7,293			7,186
	98,714			98,396
Accumulated depreciation	(53,715		)	(49,269		)
Total	$	44,999		$	49,127

Depreciation expense related to premises and equipment was $5.0 million in 2016, $4.7 million in 2015 and $3.5 million in 2014.

Certain banking facilities are leased under arrangements expiring at various dates until the year 2054. We account for these leases on a straight-line basis due to escalation clauses. All leases are accounted for as operating leases, except for one capital lease. Rental expense for premises amounted to $4.1 million, $3.9 million and $2.7 million in 2016, 2015 and 2014. Included in the rental expense for premises are leases entered into with two S&T directors, which totaled $0.3 million each year in 2016, 2015 and 2014.

Minimum annual rental and renewal option payments for each of the following five years and thereafter are approximately:

(dollars in thousands)	Operating		Capital		Total
2017	$	3,388	$	76	$	3,464
2018	3,394		76		3,470
2019	3,430		76		3,506
2020	3,380		77		3,457
2021	3,401		77		3,478
Thereafter	57,864		534		58,398
Total	$	74,857	$	916	$	75,773