Premises and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Premises and equipment are described as follows:



	Estimated Useful Life	2016		2015
	(dollars in thousands)
Land	Indefinite	$	13,679	$	12,185
Buildings and improvements	10-50 years	80,364		77,086
Leasehold improvements	5-40 years	15,871		14,518
Furniture and equipment	3-7 years	61,324		59,463
Software	3-7 years	36,077		34,472
Subtotal		207,315		197,724
Less accumulated depreciation and amortization		139,781		134,270
Total premises and equipment		$	67,534	$	63,454

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2016, 2015 and 2014 amounted to $7.5 million, $7.2 million and $13.2 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2016, were as follows:



	Premises		Equipment
	(dollars in thousands)
2017	$	3,844	$	10
2018	3,559		—
2019	3,137		—
2020	2,556		—
2021	2,265		—
Thereafter	9,693		—
Total	$	25,054	$	10

Included in the lease commitments above is $202 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020.

Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor’s cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $3.7 million in 2016 and $2.9 million in 2015 and 2014.