Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 146

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 146
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)$1,271 (1)Includes the valuation differences between the customer and offsetting swaps.Fair Value of Offsetting DerivativesCertain derivative instruments are subject to master netting agreements with counterparties that provide rights of setoff. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Balance Sheet. The following table presents the fair value of the Company’s derivatives and offsetting positions:March 31, 2025December 31, 2024(dollars in thousands)AssetsLiabilitiesAssetsLiabilitiesGross amounts recognized$138,298 $202,021 $146,478 $244,313 Less: amounts offset in the Consolidated Balance Sheet— — — — Net amount presented in the Consolidated Balance Sheet138,298 202,021 146,478 244,313 Gross amounts not offset in the Consolidated Balance SheetOffsetting derivative positions(39,671)(39,671)(24,098)(24,098)Cash collateral pledged— (68,359)— (112,499)Net credit exposure$98,627 $93,991 $122,380 $107,716 

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NOTE 16 – COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES

LitigationAt March 31, 2025, there were certain legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company’s management does not expect that any potential liabilities arising from pending litigation will have a material adverse effect on the Company’s business, financial position, or results of operations.Credit-Related Financial InstrumentsOld National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements.The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:(dollars in thousands)March