BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

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


	2020		2019		Estimated Useful Life
	(Dollars in thousands)				(In years)
Cost
Land	$	32,450	$	32,619	n/a
Bank premises	63,544		62,455		5-40
Leasehold improvements	38,667		35,498		1-27
Furniture and equipment	81,815		77,705		2-12
Leased equipment	—		10,644		7
Total cost	216,476		218,921
Accumulated depreciation	(100,083)		(95,247)
Net bank premises and equipment	$	116,393	$	123,674

Depreciation expense related to bank premises and equipment was $12.8 million, $11.4 million, and $9.1 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is reflected in occupancy and equipment expenses. Depreciation expense relating to computer software is included within other noninterest expense.

In 2017 the Company purchased a total of $10.6 million equipment that was subject to a master lease agreement with a third party lessee and recognized rental income of $1.5 million for the year ended December 31, 2020 and $1.6 million for both the years ended December 31, 2019 and 2018, as the Company assumed the role of lessor in conjunction with the purchase. This arrangement was originally deemed to be an operating lease for accounting purposes. During 2020, the Company entered into a lease modification with the third party lessee, which resulted in this lease no longer being deemed to be an operating lease for accounting purposes. Accordingly, the Company has reflected the transactions as a direct financing lease as of December 31, 2020.