Annual report pursuant to Section 13 and 15(d)

PREMISES AND EQUIPMENT

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PREMISES AND EQUIPMENT
 12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT
 
Amounts presented exclude discontinued operations. Refer to Note 18 "Segment Reporting & Discontinued Operations" in Item 8 "Financial Statements and Supplementary Data", of this Form 10-K for further discussion regarding discontinued operations.

The Company’s premises and equipment as of December 31, 2018 and 2017 are as follows (dollars in thousands):

 
2018
 
2017
Land
$
41,494

 
$
29,706

Land improvements and buildings
119,649

 
99,199

Leasehold improvements
10,266

 
9,712

Furniture and equipment
62,154

 
56,000

Construction in progress
6,956

 
8,509

Total
240,519

 
203,126

Less accumulated depreciation and amortization
93,552

 
83,522

Bank premises and equipment, net
$
146,967

 
$
119,604


 
Depreciation expense for the years ended December 31, 2018, 2017, and 2016 was $13.6 million, $10.9 million, and $9.8 million, respectively. Amortization of the fair value mark related to acquired buildings for the year ended December 31, 2018 was $228,000; there was no amortization in prior years. Future minimum rental payments required under non-cancelable operating leases for premises that have initial or remaining terms in excess of one year as of December 31, 2018 are as follows for the years ending (dollars in thousands):
2019
$
11,805

2020
10,061

2021
8,273

2022
7,032

2023
6,270

Thereafter
18,329

Total of future payments
$
61,770



The leases contain options to extend for periods up to 20 years. Rental expense for the years ended December 31, 2018, 2017, and 2016 totaled $9.2 million, $5.9 million, and $6.1 million, respectively. Amortization of the fair value mark related to leases for the year ended December 31, 2018 was $130,000; there was no amortization in prior years.