PREMISES, EQUIPMENT, AND CAPITAL LEASES, NET

The following table presents the summary of premises, equipment, and capital lease, net, as of the dates indicated:



	December 31,
($ in thousands)	2017			2016
Land	$	10,160		$	11,130
Building and improvement	110,168			87,393
Furniture, fixtures, and equipment	36,946			45,581
Leasehold improvements	12,807			16,034
Construction in process	175			20,435
Total	170,256			180,573
Less accumulated depreciation	(34,557		)	(36,956		)
Premises, equipment, and capital lease, net	$	135,699		$	143,617

On March 30, 2017, the Company completed the sale of specific assets and activities related to its Banc Home Loans division. The transaction included net book values of $1.7 million of furniture, fixtures, and equipment and $748 thousand of leasehold improvements at the transaction date.

On May 5, 2016, the Company completed the sale of all of its membership interests in The Palisades Group. The transaction included net book values of $88 thousand of furniture, fixtures, and equipment and $57 thousand of leasehold improvements at the transaction date.

On November 12, 2015, the Company purchased a certain real property located at 3 MacArthur Place, Santa Ana, California at a purchase price of approximately $77.0 million in cash.

On September 25, 2015, the Company sold two branch locations to AUB. The transaction included net book values of $47 thousand of leasehold improvements and $30 thousand of furniture, fixtures, and equipment at the transaction date.

On June 25, 2015, the Company sold an improved real property office complex located at 1588 South Coast Drive, Costa Mesa, California (the Property) at a sale price of approximately $52.3 million with a gain on sale of $9.9 million. The Property had a book value of $42.3 million at the sale date. Additionally, the Company incurred selling costs of $2.3 million for this transaction, which were reported in Professional Fees and All Other Expenses on the Consolidated Statements of Operations for the year ended December 31, 2015.

During the years ended December 31, 2017 and 2016, the Company recorded an impairment loss of $2.0 million and $595 thousand, respectively, on previously capitalized software projects in All Other Expense on the Consolidated Statements of Operations. There were no impairment losses on premises, equipment, and capital leases for the years ended December 31, 2015.

The Company recognized depreciation expense of $12.4 million, $11.7 million and $9.2 million for the years ended December 31, 2017, 2016, and 2015, respectively.

The Company leases certain equipment under capital leases. Capital leases totaled $1.5 million and $1.4 million at December 31, 2017 and 2016, respectively. The capital lease arrangements require monthly payments through 2020.

The Company leases certain properties under operating leases. Total rent expense for the years ended December 31, 2017, 2016, and 2015 amounted to $11.0 million, $16.8 million and $16.4 million, respectively. Pursuant to the terms of non-cancellable lease agreements in effect at December 31, 2017 pertaining to banking premises and equipment, future minimum rent commitments under various operating leases are as follows, before considering renewal options that generally are present.

The following table presents the future commitments under operating leases and capital leases as of December 31, 2017:



($ in thousands)	2018		2019		2020		2021		2022 and After		Total
Commitments under operating leases	$	6,833	$	5,651	$	5,175	$	3,576	$	7,189	$	28,424
Commitments under capital lease	527		503		430		—		—		1,460
Total	$	7,360	$	6,154	$	5,605	$	3,576	$	7,189	$	29,884