Bank Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Bank Premises and Equipment

6. BANK PREMISES AND EQUIPMENT:

The following is a summary of bank premises and equipment (in thousands):

	Useful Life	December 31,
		2018			2017
Land	–	$	31,190		$	29,508
Buildings	20 to 40 years		135,335			119,728
Furniture and equipment	3 to 10 years		58,969			58,672
Leasehold improvements	Lesser of lease term or 5 to 15 years		3,557			4,118
			229,051			212,026
Less- accumulated depreciation and amortization			(95,630	)		(88,000	)
Total Bank Premises and Equipment		$	133,421		$	124,026

Depreciation expense for the years ended December 31, 2018, 2017 and 2016 amounted to $10,130,000, $9,810,000 and $9,390,000, respectively, and is included in the captions net occupancy expense and equipment expense in the accompanying consolidated statements of earnings.

The Company is lessor for portions of its banking premises. Total rental income for all leases included in net occupancy expense is approximately $2,682,000, $2,367,000 and $2,139,000, for the years ended December 31, 2018, 2017 and 2016, respectively.

During the years ended December 31, 2018, 2017 and 2016, the Company recorded gains (losses) on sale of the bank premises and equipment totaling ($147,000), ($396,000) and $168,000. In 2017, the Company sold its San Angelo main region branch building for $1,586,000 and recorded a gain of $210,000 and cancelled its San Angelo grocery store branch lease and recorded a write off of leasehold improvements of $360,000. In 2016, the Company sold its Weatherford and Orange main region branch building for $1,385,000 and $2,000,000 and recorded a gain of $560,000 and a loss of $31,000, respectively.