Premises and equipment at December 31, 2024 and 2023 are summarized as follows (in thousands):


	December 31,
	2024		2023
Land	$	68,816	$	69,121
Buildings and improvements	540,832		525,941
Software and related integration	270,991		219,646
Furniture and equipment	245,796		211,082
Construction in progress	45,422		68,412
Premises and equipment	1,171,857		1,094,202
Less: Accumulated depreciation	537,372		471,979
Premises and equipment, net of accumulated depreciation	$	634,485	$	622,223

Depreciation expense of premises and equipment was $68.5 million, $68.7 million, and $68.4 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Premises and equipment, net includes right-of-use assets for leased office space and facilities. Leases are at market rates at inception and may contain escalations based on consumer price index or similar benchmarks and options to renew at then market rates.

Right-of-use assets of $213 million at December 31, 2024, and $221 million at December 31, 2023, are included in Premises and equipment, net, and the related right-of-use liabilities are included in Other liabilities in the Consolidated Balance Sheets.

At December 31, 2024, undiscounted operating lease liabilities are scheduled to mature as follows (in thousands):


2025	$	36,324
2026	33,508
2027	30,813
2028	29,390
2029	28,360
Thereafter	172,090
Total undiscounted lease payments	330,485
Less: Interest	81,821
Lease liabilities	$	248,664

Operating cash flows from operating leases were $28.6 million, $26.8 million, and $23.3 million for the years ended December 31, 2024, 2023, and 2022, respectively.

The following table presents lease expense included in Net occupancy and equipment in the Consolidated Statements of Earnings for the years indicated (in thousands).


	Year Ended December 31,
	2024		2023		2022
Operating lease expense	$	26,800	$	25,282	$	24,520
Variable lease expense	14,962		15,327		12,845
Finance lease expense	3,497		3,592		2,962
Short-term lease expense	447		283		189

At December 31, 2024, the weighted-average remaining lease term was 9.1 years and the weighted average discount rate on operating leases was 3.4%. At December 31, 2024, the weighted-average remaining lease term was 4.4 years and the weighted-average discount rate on finance leases was 2.7%.

BOKF, NA is obligated under a long-term lease for its bank premises in downtown Tulsa. The original lease dated November 1, 1976 was renegotiated on July 1, 2019. The new lease will terminate on December 31, 2034. The Company has the option to renew for an additional 10 years. Premises leases may include options to renew at then current market rates and may include escalation provisions based upon changes in consumer price index or similar benchmarks.