14. Leases

Operating lease rental income for leased assets is recognized on a straight‑line basis and amounted to $7.8 million, $8.3 million and $9.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Related depreciation expense for owned properties is recorded in occupancy expense on a straight‑line basis over the properties’ estimated useful lives.

The following table sets forth future minimum rental income under noncancelable operating leases with terms in excess of one year as of December 31, 2018:


	Minimum
	Rental
(dollars in thousands)	Income
Year ending December 31:
2019	$	5,815
2020		5,811
2021		5,735
2022		4,721
2023		3,188
Thereafter		8,527
Total	$	33,797

The Company, as lessee, is obligated under a number of noncancelable operating leases for premises and equipment with terms, including renewal options, up to 45 years, many of which provide for periodic adjustment of rent payments based on changes in various economic indicators. Under the premises leases, the Company is usually required to pay real property taxes, insurance and maintenance.

Rental expense, net of sublease income, was as follows:


	Year Ended December 31,
(dollars in thousands)	2018		2017		2016
Rental expense charged to occupancy	$	9,947	$	8,620	$	8,689
Less: sublease income		903		1,342		1,303
Net rental expense charged to occupancy		9,044		7,278		7,386
Rental expense charged to equipment expense		3,679		285		326
Total	$	12,723	$	7,563	$	7,712

The following table presents future minimum rental expense under leases with terms in excess of one year as of December 31, 2018:


	Operating		Less		Net
	Lease		Sublease		Lease
(dollars in thousands)	Payments		Income		Payments
Year ending December 31:
2019	$	8,780	$	903	$	7,877
2020		8,668		903		7,765
2021		7,961		892		7,069
2022		5,101		—		5,101
2023		2,632		—		2,632
Thereafter		34,638		—		34,638
Total	$	67,780	$	2,698	$	65,082