XML 29 R15.htm IDEA: XBRL DOCUMENT v3.25.1

Leases

3 Months Ended

Mar. 31, 2025

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 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 Line Item in the Statement of Income												Three Months Ended March 31,
(dollars in thousands)																					2025						2024
Operating lease cost			Occupancy/Equipment expense																		$	8,199					$	7,826
Finance lease cost:
Amortization of right-of-use assets			Occupancy expense																		2,270						751
Interest on lease liabilities			Interest expense																		229						181
Sub-lease income			Occupancy expense																		(83)						(125)
Total																					$	10,615					$	8,633

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)			March 31, 2025						December 31, 2024
Operating Leases
Operating lease right-of-use assets			$	176,826					$	181,920
Operating lease liabilities			194,529						200,068
Finance Leases
Premises and equipment, net			21,766						23,205
Other borrowings			23,440						24,822
Weighted-Average Remaining Lease Term (in Years)
Operating leases			7.7						7.8
Finance leases			8.3						7.8
Weighted-Average Discount Rate
Operating leases			3.15		%				3.14		%
Finance leases			4.03		%				3.96		%

Supplemental cash flow information related to leases was as follows:

			Three Months Ended March 31,
(dollars in thousands)			2025						2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	8,645					$	8,005
Operating cash flows from finance leases			229						181
Financing cash flows from finance leases			2,213						655

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2025:

(dollars in thousands)			Operating Leases						Finance Leases
2025			$	25,902					$	6,796
2026			34,128						2,619
2027			32,398						2,656
2028			28,384						2,339
2029			26,073						1,498
Thereafter			73,146						11,979
Total undiscounted lease payments			220,031						27,887
Amounts representing interest			(25,502)						(4,447)
Lease liability			$	194,529					$	23,440

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 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 Line Item in the Statement of Income												Three Months Ended March 31,
(dollars in thousands)																					2025						2024
Operating lease cost			Occupancy/Equipment expense																		$	8,199					$	7,826
Finance lease cost:
Amortization of right-of-use assets			Occupancy expense																		2,270						751
Interest on lease liabilities			Interest expense																		229						181
Sub-lease income			Occupancy expense																		(83)						(125)
Total																					$	10,615					$	8,633

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)			March 31, 2025						December 31, 2024
Operating Leases
Operating lease right-of-use assets			$	176,826					$	181,920
Operating lease liabilities			194,529						200,068
Finance Leases
Premises and equipment, net			21,766						23,205
Other borrowings			23,440						24,822
Weighted-Average Remaining Lease Term (in Years)
Operating leases			7.7						7.8
Finance leases			8.3						7.8
Weighted-Average Discount Rate
Operating leases			3.15		%				3.14		%
Finance leases			4.03		%				3.96		%

Supplemental cash flow information related to leases was as follows:

			Three Months Ended March 31,
(dollars in thousands)			2025						2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	8,645					$	8,005
Operating cash flows from finance leases			229						181
Financing cash flows from finance leases			2,213						655

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2025:

(dollars in thousands)			Operating Leases						Finance Leases
2025			$	25,902					$	6,796
2026			34,128						2,619
2027			32,398						2,656
2028			28,384						2,339
2029			26,073						1,498
Thereafter			73,146						11,979
Total undiscounted lease payments			220,031						27,887
Amounts representing interest			(25,502)						(4,447)
Lease liability			$	194,529					$	23,440

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration