Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 161

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 161
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 modified due to financial difficulties at September 30, 2025 or December 31, 2024.Purchased Credit Deteriorated LoansOld National has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition was as follows:(dollars in thousands)Bremer (1)CapStar (2)Purchase price of loans at acquisition$1,876,520 $610,691 Allowance for credit losses at acquisition103,546 26,725 Non-credit discount at acquisition75,882 41,886 Par value of acquired loans at acquisition$2,055,948 $679,302 (1)Old National acquired Bremer effective May 1, 2025.(2)Old National acquired CapStar effective April 1, 2024.

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NOTE 7 – LEASES

Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 30 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements.The components of lease expense were as follows:Affected LineItem in theStatement of IncomeThree Months EndedSeptember 30,Nine Months EndedSeptember 30,(dollars in thousands)202