PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

6.PREMISES AND EQUIPMENT

A summary of the cost and accumulated depreciation of premises and equipment follows:

December 31, (in thousands)	2017		2016
Land	$	4,185	$	5,100
Buildings and improvements		34,513		34,676
Furniture, fixtures and equipment		40,550		38,911
Leasehold improvements		18,760		17,246
Construction in progress		—		—
Total premises and equipment		98,008		95,933
Less: Accumulated depreciation and amortization		55,420		55,471
Premises and equipment, net	$	42,588	$	40,462

The Company held four former banking centers for sale as of December 31, 2017. The Company closed its Hudson, Florida banking center in January 2015 and has held the property for sale since closing.  Additionally, the Company obtained two Florida-based, former banking centers in its May 17, 2016 Cornerstone acquisition. Finally, the Company intends to begin marketing its Port Richey, Florida banking center during 2018. The Company carried all four former banking centers at a value of $3 million, inclusive of accumulated depreciation, at December 31, 2017.

In 2015, the Company sold its banking center in Elizabethtown, Kentucky and recognized a $28,000 gain on the transaction. The premises of the banking center were carried at approximately $1 million, which equated to the total cost of the premises less accumulated depreciation. 

Depreciation expense related to premises and equipment follows:

Years Ended December 31,  (in thousands)	2017		2016		2015
Depreciation expense	$	8,472	$	7,304	$	6,610