Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and equipment are described as follows:



	Estimated Useful Life	2018		2017
	(dollars in thousands)
Land	Indefinite	$	15,359	$	15,389
Buildings and improvements	10-50 years	78,643		88,386
Leasehold improvements	5-40 years	27,573		17,812
Furniture and equipment	3-7 years	67,735		64,609
Software	3-7 years	38,800		37,434
Subtotal		228,110		223,630
Less accumulated depreciation and amortization		147,636		142,291
Total premises and equipment		$	80,474	$	81,339

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2018, 2017 and 2016 amounted to $9.5 million, $9.0 million and $7.5 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2018, were as follows:



	Premises		Equipment
	(dollars in thousands)
2019	$	4,871	$	74
2020	4,965		28
2021	4,965		13
2022	4,899		5
2023	4,928		—
Thereafter	44,777		—
Total	$	69,405	$	120

Included in the lease commitments above is $141 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 $4.1 million, $2.7 million and $3.7 million in 2018, 2017 and 2016, respectively.