Premises and equipment include:


	December 31,
(in thousands)	2021			2020
Land and improvements	$	58,534		$	62,131
Buildings and improvements		222,407			224,942
Furniture and equipment		109,159			106,501
Total cost		390,100			393,574
Accumulated depreciation and amortization		(208,254	)		(200,214	)
Right of use assets		47,170			56,061
Total premises and equipment, net	$	229,016		$	249,421

Depreciation and amortization expense of premises and equipment charged to operations for the years ended December 31, 2021, 2020 and 2019 was $13.4 million, $14.1 million and $11.5 million, respectively.

Operating leases are recorded as a right of use (“ROU”) asset and operating lease liability, included in premises and equipment, net and other liabilities, respectively, on the consolidated balance sheet. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded primarily in net occupancy expense in the consolidated statements of comprehensive income.

Operating leases relate primarily to bank branches, office space and license agreements with remaining lease terms of generally 1 to 30 years, which include options for multiple five- and ten- year extensions, with a weighted-average lease term of 15.9 years. As of December 31, 2021, operating lease ROU assets and liabilities were $43.1 million and $47.5 million, respectively, and as of December 31, 2020, operating lease ROU assets and liabilities were $51.5 million and $56.0 million, respectively. The lease expense for operating leases was $5.2 million, $5.8 million and $5.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The weighted average discount rate was 2.88% as of December 31, 2021. Wesbanco also has certain software licenses and maintenance agreements that are not subject to ASC 842, "Leases". Of those, the Bank has a contract with its core banking software provider through 2027, in which it is projected the annual obligation during the contract period will be a minimum of $10.7 million per year.

Finance leases relate primarily to bank branches and office space with remaining lease terms of generally 5 to 20 years, which include options for multiple five-and ten-year extensions, with weighted-average lease terms of 13.6 years. As of December 31, 2021, the finance lease ROU assets and liabilities were $4.1 million and $4.8 million, respectively and were $4.5 million and $5.2 million, respectively, as of December 31, 2020. The weighted average discount rate was 3.78% as of both December 31, 2021 and 2020, respectively. Amortization cost related to finance lease ROU assets was $0.4 million for each of the years ended December 31, 2021, 2020 and 2019, respectively. Interest expense related to finance lease ROU assets was $0.2 million for each of the years ended December 31, 2021, 2020 and 2019, respectively.

Future minimum lease payments under non-cancellable leases with initial or remaining lease terms in excess of one year at December 31, 2021 are as follows (in thousands):


Year	Operating Leases			Finance Leases			Total
2022	$	5,215		$	873		$	6,088
2023		4,578			885			5,463
2024		4,093			890			4,983
2025		4,007			861			4,868
2026		3,976			809			4,785
2027 and thereafter		39,133			2,969			42,102
Total lease payments	$	61,002		$	7,287		$	68,289
Less: capitalized interest		(13,545	)		(2,523	)		(16,068	)
Present value of lease liabilities	$	47,457		$	4,764		$	52,221