Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 197

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 197
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 at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:(dollars in thousands)CapStar (1)Purchase price of loans at acquisition$610,691 Allowance for credit losses at acquisition26,725 Non-credit discount at acquisition41,886 Par value of acquired loans at acquisition$679,302 (1)Old National acquired CapStar effective April 1, 2024.

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NOTE 5 – PREMISES AND EQUIPMENT

The composition of premises and equipment was as follows:December 31,(dollars in thousands)20242023Land$96,798 $91,568 Buildings491,553 453,234 Furniture, fixtures, and equipment158,529 148,134 Leasehold improvements97,260 85,187 Total844,140 778,123 Accumulated depreciation(255,170)(212,727)Premises and equipment, net$588,970 $565,396 Depreciation expense was $38.1 million in 2024, $38.2 million in 2023, and $36.4 million in 2022.Finance LeasesOld National leases certain banking center buildings and equipment under finance leases that are included in premises and equipment. See Notes 6 and 13 to the consolidated financial statements for detail regarding these leases.

NOTE 6 – LEASES

Old National determines if an arrangement is or contains a lease at contract inception. Operating leases are included in other assets and other liabilities in our consolidated balance sheets. Finance leases are included in premises and equipment and other borrowings in our consolidated balance sheets.Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the implicit lease rate when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment.Old National has operating and finance leases for land, office