Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 198

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 198
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 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.

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The components of lease expense were as follows:Affected Line Item in the Statement of IncomeYears Ended December 31,(dollars in thousands)202420232022Operating lease costOccupancy/Equipment expense$32,603 $31,175 $29,368 Finance lease cost:Amortization of right-of-use assetsOccupancy expense6,688 2,921 2,672 Interest on lease liabilitiesInterest expense1,039 722 415 Sub-lease incomeOccupancy expense(446)(387)(448)Total$39,884 $34,431 $32,007 Supplemental balance sheet information related to leases was as follows:December 31,(dollars in thousands)20242023Operating LeasesOperating lease right-of-use assets$181,920 $185,506 Operating lease liabilities200,068 204,960 Finance LeasesPremises and equipment, net23,205 19,820 Other borrowings24,822 20,955 Weighted-Average Remaining Lease Term (in Years)Operating leases7.88.5Finance leases7.810.5Weighted-A