Premises and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Premises and equipment are described as follows:



	Estimated Useful Life	2017		2016
	(dollars in thousands)
Land	Indefinite	$	15,389	$	13,679
Buildings and improvements	10-50 years	88,386		80,364
Leasehold improvements	5-40 years	17,812		15,871
Furniture and equipment	3-7 years	64,609		61,324
Software	3-7 years	37,434		36,077
Subtotal		223,630		207,315
Less accumulated depreciation and amortization		142,291		139,781
Total premises and equipment		$	81,339	$	67,534

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2017, 2016 and 2015 amounted to $9.0 million, $7.5 million and $7.2 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancellable agreements. Total future minimal rental commitments at December 31, 2017, were as follows:



	Premises		Equipment
	(dollars in thousands)
2018	$	4,459	$	136
2019	4,106		78
2020	3,348		15
2021	2,929		5
2022	2,646		—
Thereafter	12,851		—
Total	$	30,339	$	234

Included in the lease commitments above is $141 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 $2.7 million, $3.7 million and $2.9 million in 2017, 2016 and 2015, respectively.