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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases 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 20 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 Line
Item in the
Statement of Income		Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2023202220232022
Operating lease costOccupancy/Equipment expense$7,462 $7,657 $23,569 $21,323 
Finance lease cost: 
Amortization of right-of-use assetsOccupancy expense742 680 2,170 2,003 
Interest on lease liabilitiesInterest expense183 105 536 315 
Sub-lease incomeOccupancy expense(119)(87)(281)(389)
Total $8,268 $8,355 $25,994 $23,252 
Supplemental balance sheet information related to leases was as follows:
(dollars in thousands)September 30,
2023		December 31,
2022
Operating Leases 
Operating lease right-of-use assets$179,284 $189,714 
Operating lease liabilities199,937 211,964 
Finance Leases
Premises and equipment, net20,571 10,799 
Other borrowings21,595 13,469 
Weighted-Average Remaining Lease Term (in Years)
Operating leases8.59.1
Finance leases10.67.2
Weighted-Average Discount Rate
Operating leases2.93 %2.88 %
Finance leases3.89 %3.30 %
Supplemental cash flow information related to leases was as follows:
Nine Months Ended
September 30,
(dollars in thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash flows from operating leases$23,766 $22,223 
Operating cash flows from finance leases536 315 
Financing cash flows from finance leases1,893 1,839 
The following table presents a maturity analysis of the Company’s lease liability by lease classification at September 30, 2023:
(dollars in thousands)Operating
Leases		Finance
Leases
2023$7,959 $826 
202431,183 3,357 
202529,564 3,380 
202628,622 2,154 
202727,662 2,157 
Thereafter102,282 14,809 
Total undiscounted lease payments227,272 26,683 
Amounts representing interest(27,335)(5,088)
Lease liability$199,937 $21,595 
Leases 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 20 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 Line
Item in the
Statement of Income		Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2023202220232022
Operating lease costOccupancy/Equipment expense$7,462 $7,657 $23,569 $21,323 
Finance lease cost: 
Amortization of right-of-use assetsOccupancy expense742 680 2,170 2,003 
Interest on lease liabilitiesInterest expense183 105 536 315 
Sub-lease incomeOccupancy expense(119)(87)(281)(389)
Total $8,268 $8,355 $25,994 $23,252 
Supplemental balance sheet information related to leases was as follows:
(dollars in thousands)September 30,
2023		December 31,
2022
Operating Leases 
Operating lease right-of-use assets$179,284 $189,714 
Operating lease liabilities199,937 211,964 
Finance Leases
Premises and equipment, net20,571 10,799 
Other borrowings21,595 13,469 
Weighted-Average Remaining Lease Term (in Years)
Operating leases8.59.1
Finance leases10.67.2
Weighted-Average Discount Rate
Operating leases2.93 %2.88 %
Finance leases3.89 %3.30 %
Supplemental cash flow information related to leases was as follows:
Nine Months Ended
September 30,
(dollars in thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash flows from operating leases$23,766 $22,223 
Operating cash flows from finance leases536 315 
Financing cash flows from finance leases1,893 1,839 
The following table presents a maturity analysis of the Company’s lease liability by lease classification at September 30, 2023:
(dollars in thousands)Operating
Leases		Finance
Leases
2023$7,959 $826 
202431,183 3,357 
202529,564 3,380 
202628,622 2,154 
202727,662 2,157 
Thereafter102,282 14,809 
Total undiscounted lease payments227,272 26,683 
Amounts representing interest(27,335)(5,088)
Lease liability$199,937 $21,595