Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 61

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 61
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 30,(dollars in thousands) 2025202420252024Derivatives inCash Flow HedgingRelationshipsLocation of Gain or(Loss) Reclassifiedfrom AOCI into IncomeGain (Loss)Recognized in OtherComprehensiveIncome on DerivativeGain (Loss)Reclassified fromAOCI intoIncomeInterest rate contractsInterest income/(expense)$(1,596)$23,654 $(4,373)$(5,970)  Nine Months EndedSeptember 30,Nine Months EndedSeptember 30, 2025202420252024Derivatives inCash Flow HedgingRelationshipsLocation of Gain or(Loss) Reclassifiedfrom AOCI into IncomeGain (Loss)Recognized in OtherComprehensiveIncome on DerivativeGain (Loss)Reclassified fromAOCI intoIncomeInterest rate contractsInterest income/(expense)$14,328 $(2,540)$(10,299)$(17,661)Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $3.8 million will be reclassified to interest income and $14.3 million will be reclassified to interest expense.Derivatives Not Designated as HedgesCommitments to fund certain mortgage loans (“interest rate lock commitments”) and forward commitments for the future delivery of mortgage loans to third party investors (“forward mortgage loan contracts”) are considered derivatives. These derivative contracts do not qualify for hedge accounting. At September 30, 2025, the notional amounts of the interest rate lock commitments were $126.1 million and forward mortgage loan contracts were $202.5 million. At December 31, 2024, the notional amounts of the interest rate lock commitments were $57.4 million and forward commitments were $88.8 million. It is our practice to enter into forward mortgage loan contracts for the future delivery of residential mortgage loans to third-party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans.Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $9.7 billion at September 30, 2025 and $6.3 billion at December 31, 2024. These