Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 59

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 59
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, collars, and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $2.0 billion notional amount at September 30, 2025 and $1.9 billion notional amount at December 31, 2024. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.Fair Value HedgesInterest rate swaps of certain borrowings were designated as fair value hedges totaling $1.1 billion notional amount at both September 30, 2025 and December 31, 2024. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $927.4 million notional amount at both September 30, 2025 and December 31, 2024. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

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The following table summarizes Old National’s derivatives designated as hedges:September 30, 2025December 31, 2024Fair ValueFair Value(dollars in thousands)NotionalAssets (1)Liabilities (2)NotionalAssets (1)Liabilities (2)Cash flow hedgesInterest rate swaps, collars, and floors on loan   pools$2,000,000 $13,448 $1,845 $1,900,000 $3,490 $11,196 Interest rate swaps on borrowings (3)50,000 — — 150,000 — — Fair value hedgesInterest rate swaps on investment securities (3)927,407 — — 927,407 — — Interest rate swaps on borrowings (3)1,100,000 5,412