BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Bank premises and equipment at December 31, were as follows:



	2019			2018			Estimated Useful Life
	(Dollars in thousands)						(In years)
Cost
Land	$	32,619		$	24,502		n/a
Bank premises	62,455			53,052			5-40
Leasehold improvements	35,498			27,615			1-27
Furniture and equipment	77,705			66,974			2-12
Leased equipment	10,644			10,644			7
Total cost	218,921			182,787
Accumulated depreciation	(95,247		)	(85,206		)
Net bank premises and equipment	$	123,674		$	97,581

Depreciation expense related to bank premises and equipment was $11.4 million in 2019, $9.1 million in 2018, and $8.5 million in 2017, respectively, primarily included in occupancy and equipment expenses. Depreciation expense relating to computer software is included within other noninterest expense.

During 2017, the Company purchased equipment that was subject to a master lease agreement with a third party lessee. As such, the Company assumed the role of lessor in conjunction with the purchase, which was deemed to be an operating lease for accounting purposes. The Company purchased a total of $10.6 million of equipment subject to the lease agreement in 2017. In addition, the Company recognized rental income of $1.6 million in each of the years ended December 31, 2019 and 2018, and $1.3 million in the year ended December 31, 2017. Included in the total above is depreciation expense of $1.3 million for each of the years ended December 31, 2019 and 2018, and $939,000 for the year ended December 31, 2017 related to the leased equipment.