XML 59 R48.htm IDEA: XBRL DOCUMENT
v3.21.2

Derivative Financial Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Interest Rate Derivatives | The following table summarizes Old National’s derivatives designated as hedges:
| September 30, 2021 |  | December 31, 2020
|  |  | Fair Value |  |  |  | Fair Value
(dollars in thousands) | Notional |  | Assets (1) |  | Liabilities (2) |  | Notional |  | Assets (1) |  | Liabilities (2)
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |
Interest rate collars and floors on loan pools | $ | 450,000 |  |  | $ | 1,559 |  |  | $ | 459 |  |  | $ | 400,000 |  |  | $ | 6,636 |  |  | $ | — |
Interest rate swaps on borrowings | 150,000 |  |  | 3,422 |  |  | — |  |  | 325,000 |  |  | 628 |  |  | 1,816 |
Fair value hedges |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps on investment securities | 909,957 |  |  | 16,516 |  |  | 9,883 |  |  | 347,516 |  |  | 1,145 |  |  | 172 |
Interest rate swaps on borrowings | 377,500 |  |  | 4,976 |  |  | — |  |  | 379,000 |  |  | 8,793 |  |  | — |
Total |  |  | $ | 26,473 |  |  | $ | 10,342 |  |  |  |  | $ | 17,202 |  |  | $ | 1,988 |
(1)Derivative assets are included in other assets on the balance sheet. (2)Derivative liabilities are included in other liabilities on the balance sheet.
Schedule of Derivative Instruments Effect on Consolidated Statement of Income | The effect 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, 2021 |  |  |  |  |  |
Interest rate contracts | Interest income/(expense) | $ | (991) |  | Fixed-rate debt |  | Interest income/(expense) | $ | 943 |
Interest rate contracts | Interest income/(expense) | 5,650 |  | Fixed-rate investment securities |  | Interest income/(expense) | (5,096) |
Total |  | $ | 4,659 |  |  |  |  | $ | (4,153) |
Three Months Ended September 30, 2020 |  |  |  |  |  |
Interest rate contracts | Interest income/(expense) | $ | (1,294) |  | Fixed-rate debt |  | Interest income/(expense) | $ | 1,290 |
Nine Months Ended September 30, 2021 |  |  |  |  |  |
Interest rate contracts | Interest income/(expense) | $ | (3,817) |  | Fixed-rate debt |  | Interest income/(expense) | $ | 3,772 |
Interest rate contracts | Interest income/(expense) | 5,659 |  | Fixed-rate investment securities |  | Interest income/(expense) | (5,158) |
Total |  | $ | 1,842 |  |  |  |  | $ | (1,386) |
Nine Months Ended September 30, 2020 |  |  |  |  |  |
Interest rate contracts | Interest income/(expense) | $ | 8,678 |  | Fixed-rate debt |  | Interest income/(expense) | $ | (8,726) |
The effect 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) |  | 2021 |  | 2020 | 2021 |  | 2020
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) | $ | (164) |  |  | $ | (11) |  | $ | 1,578 |  |  | $ | 1,550 |
|  | Nine Months Ended September 30, | Nine Months Ended September 30,
|  | 2021 |  | 2020 | 2021 |  | 2020
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) | $ | 2,612 |  |  | $ | 7,546 |  | $ | 3,483 |  |  | $ | 3,651 |
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) |  | 2021 |  | 2020
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) | $ | 46 |  |  | $ | 5 |
Mortgage contracts | Mortgage banking revenue | 1,054 |  |  | (2,811) |
Foreign currency contracts | Other income/(expense) | 3 |  |  | 49 |
Total |  | $ | 1,103 |  |  | $ | (2,757) |
|  | Nine Months Ended September 30,
|  | 2021 |  | 2020
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) | $ | 356 |  |  | $ | (582) |
Mortgage contracts | Mortgage banking revenue | (1,262) |  |  | 9,244 |
Foreign currency contracts | Other income/(expense) | (46) |  |  | 25 |
Total |  | $ | (952) |  |  | $ | 8,687 |
(1)Includes the valuation differences between the customer and offsetting swaps.
Summary of Derivatives Not Designated as Hedging Instruments | The following table summarizes Old National’s derivatives not designated as hedges:
| September 30, 2021 |  | December 31, 2020
|  |  | Fair Value |  |  |  | Fair Value
(dollars in thousands) | Notional |  | Assets (1) |  | Liabilities (2) |  | Notional |  | Assets (1) |  | Liabilities (2)
Interest rate lock commitments | $ | 188,963 |  |  | $ | 4,472 |  |  | $ | — |  |  | $ | 224,719 |  |  | $ | 9,375 |  |  | $ | — |
Forward mortgage loan contracts | 215,238 |  |  | 1,305 |  |  | — |  |  | 261,027 |  |  | — |  |  | 2,335 |
Customer interest rate swaps | 2,384,213 |  |  | 65,882 |  |  | 7,202 |  |  | 2,008,149 |  |  | 113,300 |  |  | 133 |
Counterparty interest rate swaps (3) | 2,384,213 |  |  | 453 |  |  | 9,438 |  |  | 2,008,149 |  |  | — |  |  | 13,543 |
Customer foreign currency forward contracts | 15,861 |  |  | 402 |  |  | — |  |  | 9,990 |  |  | 324 |  |  | — |
Counterparty foreign currency forward contracts | 15,724 |  |  | — |  |  | 301 |  |  | 9,854 |  |  | — |  |  | 188 |
Total |  |  | $ | 72,514 |  |  | $ | 16,941 |  |  |  |  | $ | 122,999 |  |  | $ | 16,199 |
(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 net adjustment was $50.1 million as of September 30, 2021 and $100.4 million as of December 31, 2020.

X
- Definition Tabular disclosure of effect of derivative instruments on the consolidated income statement. + References No definition available. + Details
Name: | onb_ScheduleOfDerivativeInstrumentsEffectOnConsolidatedStatementOfIncomeTableTextBlock
Namespace Prefix: | onb_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration