Premises and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and equipment are described as follows:



	Estimated Useful Life	2015		2014
	(dollars in thousands)
Land	Indefinite	$	12,185	$	12,098
Buildings and improvements	10-50 years	77,086		75,873
Leasehold improvements	5-40 years	14,518		14,229
Furniture and equipment	3-10 years	59,463		59,034
Software	3-7 years	34,472		37,007
Subtotal		197,724		198,241
Less accumulated depreciation and amortization		134,270		133,252
Total premises and equipment		$	63,454	$	64,989

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2015, 2014 and 2013 amounted to $7.2 million, $13.2 million and $10.4 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2015, were as follows:



	Premises		Equipment
	(dollars in thousands)
2016	$	3,339	$	66
2017	3,004		53
2018	2,809		9
2019	2,531		—
2020	1,981		—
Thereafter	10,360		—
Total	$	24,024	$	128

Included in the lease commitments above is $262 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020.

Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor’s cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $2.9 million, $2.9 million and $4.2 million in 2015, 2014 and 2013, respectively.