Leases

9 Months Ended

Sep. 30, 2019

The Company recognizes a lease liability and a corresponding 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. A ROU 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 0.8 to 10.6 years and a weighted average remaining lease term of 7.1 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, were excluded from the initial lease term used to determine the Company's ROU asset and lease liability. The Company's ROU asset, recorded in other assets, and lease liability, recorded in other liabilities, at September 30, 2019 was $17.6 million and $26.0 million, respectively. The weighted average discount rate used to measure the Company's lease liability was 4.91% at September 30, 2019.

Lease expense is recognized on a straight-line basis over the lease term and is recorded within other operating expenses. Lease expense totaled $1.3 million and $1.8 million for the three months ended September 30, 2019 and 2018, respectively, and $3.9 million and $5.2 million for the nine months ended September 30, 2019 and 2018, respectively. Cash payments relating to operating leases during the nine months ended September 30, 2019 were $3.7 million.

Lease liability maturities as of September 30, 2019 were as follows:



($ in thousands)	Amount
Remainder of 2019	$	1,628
2020	5,703
2021	4,707
2022	3,664
2023	3,339
Thereafter	12,202
Total lease payments	31,243
Less: Imputed interest	5,207
Present value of lease liabilities	$	26,036

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.