DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Interest Rate Derivatives |
The following table summarizes Old National’s derivatives designated as hedges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | Fair Value | | | | Fair Value | | (dollars in thousands) | Notional | | Assets (1) | | Liabilities (2) | | Notional | | Assets (1) | | Liabilities (2) | | Cash flow hedges: | | | | | | | | | | | | Interest rate swaps, collars, and floors on loan
pools | $ | 3,500,000 | | | $ | 608 | | | $ | 72,098 | | | $ | 2,300,000 | | | $ | 11,627 | | | $ | 1,667 | | Interest rate swaps on borrowings (3) | 50,000 | | | — | | | — | | | 50,000 | | | — | | | — | | | Fair value hedges: | | | | | | | | | | | | Interest rate swaps on investment securities (3) | 874,407 | | | — | | | — | | | 927,407 | | | — | | | — | | Interest rate swaps on borrowings (3) | 800,000 | | | — | | | 3,165 | | | 1,100,000 | | | 4,836 | | | — | | | Total | | | $ | 608 | | | $ | 75,263 | | | | | $ | 16,463 | | | $ | 1,667 | | | | | | | | | | | | | |
(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.
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| Schedule of Derivative Instruments Effect on Consolidated Statement of Income |
The effects of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows: | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | | | | | Gain (Loss)
Recognized
in Income on
Related
Hedged
Items | Derivatives in
Fair Value Hedging
Relationships | Location of Gain or
(Loss) Recognized in
Income on Derivative | Gain (Loss)
Recognized
in Income on
Derivative | Hedged Items
in Fair Value
Hedging
Relationships | | Location of Gain or
(Loss) Recognized in
in Income on Related
Hedged Item | Three Months Ended September 30, 2026 | | | | | | | | Interest rate contracts | Interest income/(expense) | $ | (10,497) | | Fixed-rate debt | | Interest income/(expense) | $ | 10,486 | | | Interest rate contracts | Interest income/(expense) | 39,915 | | Fixed-rate
investment
securities | | Interest income/(expense) | (40,001) | | | Total | | $ | 29,418 | | | | | $ | (29,515) | | | | | | | | | | | | | | | | Three Months Ended
September 30, 2025 | | | | | | | | Interest rate contracts | Interest income/(expense) | $ | 1,532 | | Fixed-rate debt | | Interest income/(expense) | $ | (1,552) | | | Interest rate contracts | Interest income/(expense) | (4,613) | | Fixed-rate
investment
securities | | Interest income/(expense) | 4,592 | | | Total | | $ | (3,081) | | | | | $ | 3,040 | | | | | | | | | | | | | | | | Nine Months Ended
September 30, 2026 | | | | | | | | Interest rate contracts | Interest income/(expense) | $ | (21,535) | | Fixed-rate debt | | Interest income/(expense) | $ | 21,519 | | | Interest rate contracts | Interest income/(expense) | 47,100 | | Fixed-rate
investment
securities | | Interest income/(expense) | (47,101) | | | Total | | $ | 25,565 | | | | | $ | (25,582) | | | | | | | | | | | | | | | | Nine Months Ended
September 30, 2025 | | | | | | | | Interest rate contracts | Interest income/(expense) | $ | 16,596 | | Fixed-rate debt | | Interest income/(expense) | $ | (16,559) | | | Interest rate contracts | Interest income/(expense) | (32,359) | | Fixed-rate
investment
securities | | Interest income/(expense) | 32,302 | | | Total | | $ | (15,763) | | | | | $ | 15,743 | | | | | | | | |
The effects of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | Three Months Ended
September 30, | | (dollars in thousands) | | 2026 | | 2025 | 2026 | | 2025 | Derivatives in
Cash Flow Hedging
Relationships | Location of Gain or
(Loss) Reclassified
from AOCI into Income | Gain (Loss)
Recognized in Other
Comprehensive
Income on Derivative | Gain (Loss)
Reclassified from
AOCI into
Income | | Interest rate contracts | Interest income/(expense) | $ | (58,378) | | | $ | (1,596) | | $ | (2,523) | | | $ | (4,373) | | | | Nine Months Ended
September 30, | Nine Months Ended
September 30, | | | 2026 | | 2025 | 2026 | | 2025 | Derivatives in
Cash Flow Hedging
Relationships | Location of Gain or
(Loss) Reclassified
from AOCI into Income | Gain (Loss)
Recognized in Other
Comprehensive
Income on Derivative | Gain (Loss)
Reclassified from
AOCI into
Income | | Interest rate contracts | Interest income/(expense) | $ | (81,621) | | | $ | 14,328 | | $ | (8,499) | | | $ | (10,299) | |
The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows: | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | (dollars in thousands) | | 2026 | | 2025 | Derivatives Not Designated as
Hedging Instruments | Location of Gain or (Loss)
Recognized in Income on
Derivative | Gain (Loss)
Recognized in Income on
Derivative | Interest rate contracts (1) | Other income/(expense) | $ | 378 | | | $ | (826) | | | Mortgage contracts | Mortgage banking revenue | 1,119 | | | 8 | | | Foreign currency contracts | Other income/(expense) | 17 | | | (21) | | | Total | | $ | 1,514 | | | $ | (839) | | | | | | | | | Nine Months Ended
September 30, | | | 2026 | | 2025 | Derivatives Not Designated as
Hedging Instruments | Location of Gain or (Loss)
Recognized in Income on
Derivative | Gain (Loss)
Recognized in Income on
Derivative | Interest rate contracts (1) | Other income/(expense) | $ | 834 | | | $ | (679) | | | Mortgage contracts | Mortgage banking revenue | 1,207 | | | (495) | | | Foreign currency contracts | Other income/(expense) | 34 | | | (33) | | | Total | | $ | 2,075 | | | $ | (1,207) | |
(1)Includes the valuation differences between the customer and offsetting swaps.
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| Schedule of Derivatives not Designated as Hedging Instruments |
The following table summarizes Old National’s derivatives not designated as hedges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | Fair Value | | | | Fair Value | | (dollars in thousands) | Notional | | Assets (1) | | Liabilities (2) | | Notional | | Assets (1) | | Liabilities (2) | | Interest rate lock commitments | $ | 86,924 | | | $ | — | | | $ | 955 | | | $ | 81,698 | | | $ | 583 | | | $ | — | | | Forward mortgage loan contracts | 103,736 | | | 2,344 | | | — | | | 120,584 | | | — | | | 402 | | | Customer interest rate contracts | 11,106,547 | | | 978 | | | 442,395 | | | 9,939,577 | | | 76,026 | | | 180,367 | | Counterparty interest rate contracts (3) | 11,106,547 | | | 314,628 | | | 992 | | | 9,939,577 | | | 77,597 | | | 76,442 | | | Customer foreign currency contracts | 31,377 | | | 361 | | | 18 | | | 12,086 | | | 106 | | | 27 | | | Counterparty foreign currency contracts | 36,521 | | | 194 | | | 403 | | | 11,656 | | | 53 | | | 63 | | | Total | | | $ | 318,505 | | | $ | 444,763 | | | | | $ | 154,365 | | | $ | 257,301 | | | | | | | | | | | | | |
(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.
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| Schedule of Offsetting Assets |
The following table presents the fair value of the Company’s derivatives and offsetting positions: | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (dollars in thousands) | Assets | | Liabilities | | Assets | | Liabilities | | Gross amounts recognized | $ | 319,113 | | | $ | 520,026 | | | $ | 170,828 | | | $ | 258,968 | | | Less: amounts offset in the Consolidated Balance Sheet | — | | | — | | | — | | | — | | | Net amount presented in the Consolidated Balance Sheet | 319,113 | | | 520,026 | | | 170,828 | | | 258,968 | | | Gross amounts not offset in the Consolidated Balance Sheet | | | | | | | | | Offsetting derivative positions | (73,493) | | | (73,493) | | | (78,172) | | | (78,172) | | | Cash collateral pledged | — | | | (235,119) | | | (17,670) | | | (28,689) | | | Net credit exposure | $ | 245,620 | | | $ | 211,414 | | | $ | 74,986 | | | $ | 152,107 | |
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| Schedule of Offsetting Liabilities |
The following table presents the fair value of the Company’s derivatives and offsetting positions: | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | (dollars in thousands) | Assets | | Liabilities | | Assets | | Liabilities | | Gross amounts recognized | $ | 319,113 | | | $ | 520,026 | | | $ | 170,828 | | | $ | 258,968 | | | Less: amounts offset in the Consolidated Balance Sheet | — | | | — | | | — | | | — | | | Net amount presented in the Consolidated Balance Sheet | 319,113 | | | 520,026 | | | 170,828 | | | 258,968 | | | Gross amounts not offset in the Consolidated Balance Sheet | | | | | | | | | Offsetting derivative positions | (73,493) | | | (73,493) | | | (78,172) | | | (78,172) | | | Cash collateral pledged | — | | | (235,119) | | | (17,670) | | | (28,689) | | | Net credit exposure | $ | 245,620 | | | $ | 211,414 | | | $ | 74,986 | | | $ | 152,107 | |
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