PREMISES AND EQUIPMENT

Premises and equipment, less accumulated depreciation and amortization, is summarized as follows.



(in thousands)	December 31, 2019		December 31, 2018
Land	$	7,418	$	6,220
Land improvements	3,865		3,842
Building and improvements	50,818		42,238
Leasehold improvements	4,580		4,092
Furniture and equipment	20,262		18,590
	86,943		74,982
Less accumulated depreciation and amortization	30,474		26,809
Premises and equipment, net	$	56,469	$	48,173

Depreciation and amortization expense amounted to $3.8 million in 2019, $4.4 million in 2018, and $4.2 million in 2017. The Company and certain of its subsidiaries are obligated under non-cancelable operating leases for facilities, certain of which provide for increased rentals based upon increases in cost of living adjustments and other indices. Rent expense under leases totaled $1.2 million in 2019, $1.4 million in 2018, and $1.1 million in 2017.

As of January 1, 2019, the Company adopted ASU 2016-02 (Topic 842) on a prospective basis using the effective date method. The adoption of the new standard did not have a material impact on Nicolet's financial statements; however, additional disclosures have been added in accordance with the ASU. See Note 1 for additional information on this new accounting standard.

The operating lease ROU asset represents the right to use an underlying asset during the lease term, while the operating lease liability represents the obligation to make lease payments arising from the lease. The ROU asset and lease liability are recognized at lease commencement based on the present value of the remaining lease payments, considering a discount rate that represents Nicolet's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and is recognized in occupancy, equipment, and office on the consolidated statements of income.

Nicolet leases space under non-cancelable operating lease agreements for certain bank and nonbank branch facilities with remaining lease terms of 2 to 6 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. The lease asset and liability considers renewal options when they are reasonably certain of being exercised.

A summary of net lease cost and selected other information related to operating leases was as follows.



	Year Ended
($ in thousands)	December 31, 2019
Net lease cost:
Operating lease cost	$	970
Variable lease cost	233
Net lease cost	$	1,203
Selected other operating lease information:
Weighted average remaining lease term (years)	4.3
Weighted average discount rate	2.5		%

The following table summarizes the maturity of remaining lease liabilities.



Years Ending December 31,	(in thousands)
2020	$	1,088
2021	962
2022	851
2023	607
2024	499
Thereafter	16
Total future minimum lease payments	4,023
Less: amount representing interest	(100		)
Present value of net future minimum lease payments	$	3,923

During the fourth quarter of 2019, a $0.7 million lease termination charge was recorded to other expense due to the closure of a branch, concurrent with the consummation date of the Choice merger.