Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 145

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 145
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 rate swaps and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business 

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needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment.The following table summarizes Old National’s derivatives not designated as hedges:March 31, 2025December 31, 2024Fair ValueFair Value(dollars in thousands)NotionalAssets (1)Liabilities (2)NotionalAssets (1)Liabilities (2)Interest rate lock commitments$103,335 $727 $— $57,380 $— $166 Forward mortgage loan contracts116,287 — 468 88,808 807 — Customer interest rate swaps6,322,143 34,103 161,529 6,255,123 12,827 219,926 Counterparty interest rate swaps (3)6,322,143 89,572 34,285 6,255,123 128,469 12,902 Customer foreign currency contracts14,703 384 272 10,265 28 121 Counterparty foreign currency contracts15,968 122 81 10,093 192 2 Total$124,908 $196,635 $142,323 $233,117 (1)Derivative assets are included in other assets on the balance sheet.(2)Derivative liabilities are included in other liabilities on the balance sheet.(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:Three Months EndedMarch 31,(dollars in thousands) 20252024Derivatives Not Designated asHedging InstrumentsLocation of Gain or (Loss)Recognized in Income onDerivativeGain (Loss)Recognized in Income onDerivativeInterest rate contracts (1)Other income/(expense)$23 $568 Mortgage contractsMortgage banking revenue(381)737 Foreign currency contractsOther income/(expense)53 (34)Total $(305