BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

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


	2021		2020		Estimated Useful Life
	(Dollars in thousands)				(In years)
Cost
Land	$	54,295	$	32,450	n/a
Bank premises	96,887		63,544		5-40
Leasehold improvements	45,263		38,667		1-27
Furniture and equipment	89,029		81,815		2-12
Leased equipment	21,660		—		5
Total cost	307,134		216,476
Accumulated depreciation	(111,544)		(100,083)
Net bank premises and equipment	$	195,590	$	116,393

Depreciation expense related to bank premises and equipment was $12.5 million, $12.8 million, and $11.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is primarily reflected in occupancy and equipment expenses.

In 2021 the Company purchased a total of $21.7 million in equipment that was subject to a master lease agreement with a third party lessee and recognized rental income of $890,000 for the year ended December 31, 2021, as the Company assumed the role of lessor in conjunction with the purchase. This arrangement was deemed to be an operating lease for accounting purposes. Previously, the Company had purchased $10.6 million in equipment that was subject to a similar agreement and recognized rental income of $1.5 million for the year ended December 31, 2020. This arrangement was originally deemed to be an operating lease for accounting purposes but was subsequently modified and as a result the transaction was reflected as a direct financing beginning in the fourth quarter of 2020 and no additional rental income was recognized by the Company.