Premises and Equipment and Leases

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Premises and Equipment Disclosure [Text Block]

Premises and Equipment and Leases

Premises and equipment at December 31 are summarized as follows (in thousands):

	December 31,
	2019		2018
Land	$	69,960	$	70,575
Buildings and improvements	421,952		266,733
Software and related integration	98,487		150,207
Furniture and equipment	135,153		129,988
Construction in progress	53,498		27,514
Premises and equipment	779,050		645,017
Less accumulated depreciation	243,531		314,984
Premises and equipment, net of accumulated depreciation	$	535,519	$	330,033

Depreciation expense of premises and equipment was $51.6 million, $51.2 million and $47.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Effective January 1, 2019, premises and equipment included right-of-use assets for leased office space and facilities. Leases are at market rates at inception and may contain escalations based on consumer price index or similar benchmarks and options to renew at then market rates.

At December 31, 2019, right-of-use assets of $180 million are included in buildings and improvements and related right-of-use liabilities are included in other liabilities. The weighted-average remaining lease term was 11.1 years and the weighted average discount rate on operating leases was 3.2 percent. Operating lease costs recognized as occupancy and equipment expense were $24.2 million for the year ended December 31, 2019. Operating cash flows from operating leases were $23.3 million for the year ended December 31, 2019.

Total rent expense for BOK Financial was $43.0 million in 2019, $28.5 million in 2018 and $27.5 million in 2017. At December 31, 2019, un-discounted operating lease liabilities are scheduled to mature as follows: $27.5 million in 2020, $25.7 million in 2021, $20.1 million in 2022, $18.9 million in 2023, $18.2 million in 2024 and $127 million thereafter. Operating expense and short term lease costs total $12.6 million for the year ended December 31, 2019. BOKF, NA is obligated under a long-term lease for its bank premises in downtown Tulsa. The original lease dated November 1, 1976 was renegotiated on July 1, 2019. The new lease will terminate on December 31, 2034. The Company has the option to renew for an additional 10 years. Premises leases may include options to renew at then current market rates and may include escalation provisions based upon changes in consumer price index or similar benchmarks.

The Company may lease owned properties or sublease unoccupied leased facilities. Income on these leases is immaterial.