BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Bank premises and equipment at December 31, were as follows:



	2017			2016			Estimated Useful Life
	(Dollars in thousands)						(In years)
Cost
Land	$	23,719		$	20,585		n/a
Bank premises	49,159			43,553			5-40
Leasehold improvements	25,184			24,387			1-27
Furniture and equipment	62,521			58,237			1-12
Leased equipment	10,644			—			7
Total cost	171,227			146,762
Accumulated depreciation	(76,505		)	(68,282		)
Net bank premises and equipment	$	94,722		$	78,480

Depreciation expense related to bank premises and equipment was $8.5 million in 2017, $7.3 million in 2016, and $7.0 million in 2015, which is primarily included in occupancy and equipment expenses. Depreciation expense relating to computer software is included within other noninterest expense.

During 2017, the Company purchased equipment that was subject to a master lease agreement with a third party lessee. As such, the Company assumed the role of lessor in conjunction with the purchase, which was deemed to be an operating lease for accounting purposes. The Company purchased a total of $10.6 million of equipment subject to the lease agreement in 2017. In addition, the Company recognized rental income of $1.3 million for the year ended December 31, 2017, as well as depreciation expense of $939,000, which is included in the totals above.