Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Note 5—Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization, as follows:

			December 31,
(In thousands)	Estimated Useful Life in Years		2018			2017
Premises:
Land		—	$	16,604		$	16,875
Buildings, construction and improvements⁽¹⁾	2-40			54,298			53,620
Total premises				70,902			70,495
Equipment	3-10			40,960			34,123
Total premises and equipment				111,862			104,618
Less: Accumulated depreciation and amortization				(48,241	)		(41,186	)
Total premises and equipment, net			$	63,621		$	63,432

⁽¹⁾	Leasehold improvements are depreciated over the lesser of the estimated useful life or the lease term.

The amount charged to operating expenses for depreciation was approximately $7.6 million, $7.1 million and $6.7 million for 2018, 2017 and 2016, respectively.

Included in other assets is net software cost totaling $4.0 million and $4.0 million as of December 31, 2018 and 2017, respectively. The amount charged to operating expenses for software amortization was $1.7 million, $1.9 million and $1.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company leases various premises and equipment under operating leases. The leases have varying terms, with most containing renewal or first-right-of-refusal options for multi-year periods and annual increases in base rates.

The following is a schedule by year of future minimum lease payments under operating leases, as of December 31, 2018:

(In thousands)	Property		Equipment		Total
2019	$	10,005	$	299	$	10,304
2020		9,103		158		9,261
2021		8,445		72		8,517
2022		6,220		—		6,220
2023		3,968		—		3,968
Thereafter		5,302		—		5,302
Total minimum lease payments	$	43,043	$	529	$	43,572

Rental expense for premises and equipment, net of rental income, for the years ended December 31, 2018, 2017 and 2016, was approximately $12.1 million, $11.2 million and $11.1 million, respectively. The major portion of equipment rental expense is related to office equipment and is paid on a month-to-month basis.