BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

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



	2018			2017			Estimated Useful Life
	(Dollars in thousands)						(In years)
Cost
Land	$	24,502		$	23,719		n/a
Bank premises	53,052			49,159			5-40
Leasehold improvements	27,615			25,184			1-27
Furniture and equipment	66,974			62,521			2-12
Leased equipment	10,644			10,644			7
Total cost	182,787			171,227
Accumulated depreciation	(85,206		)	(76,505		)
Net bank premises and equipment	$	97,581		$	94,722

Depreciation expense related to bank premises and equipment was $9.1 million in 2018, $8.5 million in 2017, and $7.3 million in 2016, 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 $1.6 million and $1.3 million for the years ended December 31, 2018 and 2017, respectively, as well as depreciation expense of $1.3 million and $939,000 respectively, which is included in the totals above.