v3.26.3
INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
The following table summarizes the amortized cost and fair value of the available-for-sale portfolio and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in accumulated other comprehensive income (loss) (“AOCI”).
(dollars in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses
Basis
Adjustments (1)
Fair
Value
September 30, 2026
Available-for-Sale
U.S. Treasury$257,667 $— $(10,279)$(55,802)$191,586 
U.S. government-sponsored entities and agencies1,562,644 — (174,986)(93,553)1,294,105 
Mortgage-backed securities - Agency10,329,298 737 (914,124)— 9,415,911 
States and political subdivisions290,742 51 (33,009)(1,096)256,688 
Pooled trust preferred securities13,830 — (843)— 12,987 
Other securities150,926 925 (6,494)— 145,357 
Total available-for-sale securities$12,605,107 $1,713 $(1,139,735)$(150,451)$11,316,634 
December 31, 2025
Available-for-Sale
U.S. Treasury$269,313 $90 $(7,615)$(47,244)$214,544 
U.S. government-sponsored entities and agencies1,567,036 402 (134,795)(60,251)1,372,392 
Mortgage-backed securities - Agency9,575,241 79,999 (487,205)— 9,168,035 
States and political subdivisions438,642 2,275 (17,286)2,377 426,008 
Pooled trust preferred securities13,819 — (2,085)— 11,734 
Other securities195,946 1,138 (5,347)— 191,737 
Total available-for-sale securities$12,059,997 $83,904 $(654,333)$(105,118)$11,384,450 
(1)    Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments.
The following table summarizes the amortized cost and fair value of the held-to-maturity investment securities portfolio and the corresponding amounts of gross unrecognized gains and losses.
(dollars in thousands)Amortized
Cost		Unrecognized
Gains		Unrecognized
Losses		Fair
Value
September 30, 2026
Held-to-Maturity
U.S. government-sponsored entities and agencies$827,022 $— $(180,529)$646,493 
Mortgage-backed securities - Agency859,434 — (168,520)690,914 
States and political subdivisions1,136,621 — (209,981)926,640 
Allowance for securities held-to-maturity(150)— — (150)
Total held-to-maturity securities$2,822,927 $— $(559,030)$2,263,897 
December 31, 2025
Held-to-Maturity
U.S. government-sponsored entities and agencies$840,435 $— $(129,526)$710,909 
Mortgage-backed securities - Agency910,323 — (127,505)782,818 
States and political subdivisions1,144,880 853 (99,072)1,046,661 
Allowance for securities held-to-maturity(150)— — (150)
Total held-to-maturity securities$2,895,488 $853 $(356,103)$2,540,238 
Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities.
Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2026202520262025
Proceeds$27,700 $57,784 $231,043 $2,221,229 
Realized gains6 7 858 97 
Realized losses(1)— (812)(207)
The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost.
September 30, 2026
(dollars in thousands)Amortized
Cost		Fair
Value		Weighted
Average
Yield
Maturity
Available-for-Sale
Within one year$147,175 $146,523 4.76 %
One to five years3,002,732 2,826,908 3.83 
Five to ten years8,382,230 7,517,292 4.16 
Beyond ten years1,072,970 825,911 3.31 
Total$12,605,107 $11,316,634 4.01 %
Held-to-Maturity
Within one year$940 $921 2.23 %
One to five years134,064 121,171 2.68 
Five to ten years1,549,141 1,273,502 2.53 
Beyond ten years1,138,782 868,303 2.83 
Total$2,822,927 $2,263,897 2.66 %
The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:
Less than 12 months12 months or longerTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized Losses
September 30, 2026
Available-for-Sale
U.S. Treasury$18,852 $(101)$172,734 $(10,178)$191,586 $(10,279)
U.S. government-sponsored entities
   and agencies		206,514 (10,755)1,087,591 (164,231)1,294,105 (174,986)
Mortgage-backed securities - Agency6,482,292 (285,437)2,739,227 (628,687)9,221,519 (914,124)
States and political subdivisions100,902 (3,983)125,661 (29,026)226,563 (33,009)
Pooled trust preferred securities— — 12,987 (843)12,987 (843)
Other securities13,382 (374)84,205 (6,120)97,587 (6,494)
Total available-for-sale$6,821,942 $(300,650)$4,222,405 $(839,085)$11,044,347 $(1,139,735)
December 31, 2025
Available-for-Sale
U.S. Treasury$— $— $184,175 $(7,615)$184,175 $(7,615)
U.S. government-sponsored entities
   and agencies		79,916 (78)1,173,044 (134,717)1,252,960 (134,795)
Mortgage-backed securities - Agency252,875 (953)3,157,476 (486,252)3,410,351 (487,205)
States and political subdivisions6,561 (17)234,389 (17,269)240,950 (17,286)
Pooled trust preferred securities— — 11,734 (2,085)11,734 (2,085)
Other securities1,766 (88)124,990 (5,259)126,756 (5,347)
Total available-for-sale$341,118 $(1,136)$4,885,808 $(653,197)$5,226,926 $(654,333)
The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:
Less than 12 months12 months or longerTotal
(dollars in thousands)Fair
Value		Unrecognized
Losses		Fair
Value		Unrecognized
Losses		Fair
Value		Unrecognized
Losses
September 30, 2026
Held-to-Maturity
U.S. government-sponsored entities
   and agencies		$— $— $646,493 $(180,529)$646,493 $(180,529)
Mortgage-backed securities - Agency— — 690,914 (168,520)690,914 (168,520)
States and political subdivisions77,487 (9,434)849,153 (200,547)926,640 (209,981)
Total held-to-maturity$77,487 $(9,434)$2,186,560 $(549,596)$2,264,047 $(559,030)
December 31, 2025
Held-to-Maturity
U.S. government-sponsored entities
   and agencies		$— $— $710,909 $(129,526)$710,909 $(129,526)
Mortgage-backed securities - Agency— — 782,818 (127,505)782,818 (127,505)
States and political subdivisions— — 995,331 (99,072)995,331 (99,072)
Total held-to-maturity$— $— $2,489,058 $(356,103)$2,489,058 $(356,103)
The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-to-maturity totaling $83.0 million at September 30, 2026 and $94.1 million at December 31, 2025. These unrecognized losses are included as a separate component of shareholders’ equity and are being amortized over the remaining term of the securities.
No allowance for credit losses on available-for-sale debt securities was needed at September 30, 2026 or December 31, 2025.
An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at September 30, 2026 and December 31, 2025. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses and totaled $59.6 million at September 30, 2026 and $70.1 million at December 31, 2025.
At September 30, 2026, Old National’s securities portfolio consisted of 2,984 securities, 2,820 of which were in an unrealized or unrecognized loss position. The unrealized and unrecognized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and market movements. Old National’s pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At September 30, 2026, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.
Old National’s pooled trust preferred securities have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the three or nine months ended September 30, 2026 or 2025.
Equity Securities
Equity securities consist of mutual funds for Community Reinvestment Act qualified investments and diversified investment securities held in a grantor trust for participants in the Company’s nonqualified deferred compensation plan. Old National’s equity securities with readily determinable fair values totaled $132.3 million at September 30, 2026 and $128.9 million at December 31, 2025. There were losses on equity securities of $0.9 million and $1.4 million during the three and nine months ended September 30, 2026, respectively, compared to gains on equity securities of $1.0 million and $0.4 million during the three and nine months ended September 30, 2025, respectively.
Alternative Investments
Old National has alternative investments without readily determinable fair values that are included in other assets totaling $1.1 billion at September 30, 2026 and $1.0 billion at December 31, 2025. These investments consisted of $654.6 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $435.6 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods at September 30, 2026, compared to $606.5 million and $410.0 million for the same investment types, respectively, at December 31, 2025. There have been no impairments or adjustments on alternative investments without readily determinable fair values, except for amortization of tax credit investments in the three and nine months ended September 30, 2026 and 2025. See Note 9 to the consolidated financial statements for detail regarding these investments.