Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 180

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 180
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 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 $1.1 million and $1.7 million for the three and six months ended June 30, 2025, respectively, compared to $0.5 million and $0.8 million for the three and six months ended June 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.

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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 PrincipalJune 30, 2025   Loans held-for-sale$77,618 $1,749 $75,869 December 31, 2024Loans held-for-sale$34,483 $271 $34,212 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 June 30, 2025    Loans held-for-sale$783 $101 $— $884 Three Months Ended June 30, 2024Loans held-for-sale$105 $6 $— $111 Six Months Ended June 30, 2025Loans held