Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 62

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 62
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 derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment.

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The following table summarizes Old National’s derivatives not designated as hedges:September 30, 2025December 31, 2024Fair ValueFair Value(dollars in thousands)NotionalAssets (1)Liabilities (2)NotionalAssets (1)Liabilities (2)Interest rate lock commitments$126,070 $522 $— $57,380 $— $166 Forward mortgage loan contracts202,529 — 82 88,808 807 — Customer interest rate swaps9,706,441 83,696 191,202 6,255,123 12,827 219,926 Counterparty interest rate swaps (3)9,706,441 78,452 84,168 6,255,123 128,469 12,902 Customer foreign currency contracts7,919 230 33 10,265 28 121 Counterparty foreign currency contracts7,688 39 169 10,093 192 2 Total$162,939 $275,654 $142,323 $233,117 (1)Derivative assets are included in other assets on the balance sheet.(2)Derivative liabilities are included in other liabilities on the balance sheet.(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:Three Months EndedSeptember 30,(dollars in thousands) 20252024Derivatives Not Designated asHedging InstrumentsLocation of Gain or (Loss)Recognized in Income onDerivativeGain (Loss)Recognized in Income onDerivativeInterest rate contracts (1)Other income/(expense)$(826)$(89)Mortgage contractsMortgage banking revenue8 114 Foreign currency contracts