Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 184

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 184
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-downs during the year ended December 31, 2024, so no range or weighted average is reported.Fair Value OptionOld National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.Loans Held-For-SaleOld National has elected the fair value option for loans held-for-sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Interest income for loans held-for-sale is included in the income statement totaling $0.9 million and $2.6 million for the three and nine months ended September 30, 2025, respectively, compared to $0.7 million and $1.5 million for the three and nine months ended September 30, 2024, respectively.Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment.The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: (dollars in thousands)AggregateFair ValueDifference Contractual PrincipalSeptember 30, 2025   Loans held-for-sale$80,341 $1,829 $78,512 December 31, 2024Loans held-for-sale$34,483 $271 $34,212 

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Accrued interest at period end is included in the fair value of the instruments.The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:(dollars in thousands)OtherGains and (Losses)Interest IncomeInterest (Expense)Total Changesin Fair ValuesIncluded inCurrent Period EarningsThree Months Ended