Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

See Note 1 for the Corporation’s accounting policy for premises and equipment. A summary of premises and equipment at December 31 is as follows:

		2018						2017
($ in Thousands)	Estimated Useful Lives	Cost		Accumulated Depreciation		Net Book Value		Net Book Value
Land	—	$	67,737	$	—	$	67,737	$	59,257
Land improvements	3 – 15 years	14,730		7,518		7,212		6,313
Buildings and improvements	5 – 39 years	363,000		150,464		212,536		198,431
Computers	3 – 5 years	45,768		33,375		12,392		11,078
Furniture, fixtures and other equipment	3 – 15 years	168,567		118,676		49,891		42,049
Leasehold improvements	3 – 15 years	34,248		20,791		13,457		13,835
Total premises and equipment		$	694,050	$	330,824	$	363,225	$	330,963

Depreciation and amortization of premises and equipment totaled $34 million in 2018, $32 million in 2017, and $32 million in 2016.

During 2018, the Corporation acquired properties as a result of the Bank Mutual acquisition. Upon conversion, several Associated Bank and Bank Mutual properties were moved to OREO as a result of branch consolidations. The majority of these properties were sold prior to year-end.

The Corporation conducts a portion of its business through certain facilities and equipment under noncancelable operating leases. The Corporation also leases a subdivision of some of its facilities and receives rental income from such lease agreements. The approximate minimum annual rental payments and rental receipts under noncancelable agreements and leases with remaining terms in excess of one year are as follows:

($ in Thousands)	Payments		Receipts
2019	$	10,235	$	2,963
2020	10,107		3,030
2021	9,500		2,860
2022	7,084		1,875
2023	5,183		1,260
Thereafter	22,622		7,806
Total	$	64,732	$	19,794

Total rental expense under leases, net of lease income, totaled $10 million in 2018, $6 million in 2017, and $8 million in 2016, respectively. The increase of rental expense was primarily driven by lease breakage costs totaling $5 million in 2018 primarily driven by the consolidation of Associated Bank and Bank Mutual branches resulting from the Bank Mutual acquisition.