Leases

6 Months Ended

Jun. 30, 2019

The Company recognizes a lease liability, and a corresponding asset (ROU asset), on the commencement date of any lease arrangement. The lease liability is initially measured at the present value of the future minimum lease payments over the lease term using the rate implicit in the arrangement or, if not available, the Company's incremental borrowing rate. An operating lease asset is measured initially at the value of the lease liability excluding any lease incentives and initial direct costs incurred. All of the Company's leases qualify as operating leases and consist primarily of real estate leases for its office locations which have remaining initial lease terms ranging from 1.0 to 10.8 years and a weighted average remaining lease term of 7.2 years. The Company has options to renew some of its leases for periods ranging from 3.0 to 15.0 years, depending on the lease. None of the Company's renewal options were considered reasonably assured of being exercised and, therefore, all were excluded from the initial lease term used to determine the Company's ROU asset and lease liability. The balance at June 30, 2019 of the ROU asset recorded in other assets was $18.6 million and the balance of the lease liability recorded in other liabilities was $27.0 million in the Company's condensed consolidated balance sheet. The weighted average discount rate used to measure the Company's lease liability was 4.91% at June 30, 2019.

Lease expense is recognized on a straight-line basis over the lease term and is recorded within other operating expenses on the Company’s condensed consolidated statement of operations. Lease expense for the Company totaled $1.9 million and $1.7 million for the three months ended June 30, 2019 and 2018, respectively, and $3.2 million and $3.4 million for the six months ended June 30, 2019 and 2018, respectively. Cash payments relating to operating leases during the six months ended June 30, 2019 were $2.4 million.

The maturities of lease liabilities as of June 30, 2019 were as follows:



($ in thousands)	Amount
Remainder of 2019	$	2,881
2020	5,703
2021	4,707
2022	3,664
2023	3,339
Thereafter	12,202
Total lease payments	32,496
Less: Imputed interest	5,534
Present value of lease liabilities	$	26,962

Minimum aggregate rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year recorded in accordance with ASC 840 as of December 31, 2018 were as follows: $6.1 million in 2019; $6.5 million in 2020; $5.1 million in 2021; $3.9 million in 2022; $3.5 million in 2023; and $12.9 million thereafter.