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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Interest Rate Derivatives
The following table summarizes Old National’s derivatives designated as hedges:
June 30, 2023December 31, 2022
Fair ValueFair 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$1,400,000 $2,169 $15,563 $1,900,000 $11,764 $47,859 
Interest rate swaps on borrowings (3)(4)
250,000 — — 150,000 — — 
Fair value hedges
Interest rate swaps on investment securities (3)
909,957 — — 909,957 — — 
Interest rate swaps on borrowings (3)
700,000 — — 300,000 — — 
Total$2,169 $15,563 $11,764 $47,859 
(1)Derivative assets are included in other assets on the balance sheet.
(2)Derivative liabilities are included in other liabilities on the balance sheet.
(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.
(4)Gross totals include maturing LIBOR and replacement SOFR interest rate swaps executed as part of reference rate reform.
Schedule of Derivative Instruments Effect on Consolidated Statement of Income
The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:
(dollars in thousands)Gain (Loss)
Recognized
in Income on
Related
Hedged
Items
Derivatives in
Fair Value Hedging
Relationships		Location of Gain or
(Loss) Recognized in
Income on Derivative		Gain (Loss)
Recognized
in Income on
Derivative		Hedged Items
in Fair Value
Hedging
Relationships		Location of Gain or
(Loss) Recognized in
in Income on Related
Hedged Item
Three Months Ended
June 30, 2023
Interest rate contractsInterest income/(expense)$(11,101)Fixed-rate debtInterest income/(expense)$10,956 
Interest rate contractsInterest income/(expense)24,846 Fixed-rate
investment
securities		Interest income/(expense)(24,867)
Total$13,745 $(13,911)
Three Months Ended
June 30, 2022
Interest rate contractsInterest income/(expense)$(2,524)Fixed-rate debtInterest income/(expense)$2,600 
Interest rate contractsInterest income/(expense)53,779 Fixed-rate
investment
securities		Interest income/(expense)(53,762)
Total$51,255 $(51,162)
Six Months Ended
June 30, 2023
Interest rate contractsInterest income/(expense)$(8,948)Fixed-rate debtInterest income/(expense)$8,738 
Interest rate contractsInterest income/(expense)(38,269)Fixed-rate
investment
securities		Interest income/(expense)38,384 
Total$(47,217)$47,122 
Six Months Ended
June 30, 2022
Interest rate contractsInterest income/(expense)$(7,357)Fixed-rate debtInterest income/(expense)$7,555 
Interest rate contractsInterest income/(expense)111,433 Fixed-rate
investment
securities		Interest income/(expense)(111,791)
Total$104,076 $(104,236)
The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:
Three Months Ended
June 30,		Three Months Ended
June 30,
(dollars in thousands) 2023202220232022
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 contractsInterest income/(expense)$13,272 $(3,418)$31,078 $219 
  Six Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
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 contractsInterest income/(expense)$19,875 $(12,924)$23,441 $888 
The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:
Three Months Ended
June 30,
(dollars in thousands) 20232022
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)$837 $449 
Mortgage contractsMortgage banking revenue262 (1,503)
Foreign currency contractsOther income/(expense)(12)65 
Total $1,087 $(989)
  Six Months Ended
June 30,
 20232022
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)$699 $950 
Mortgage contractsMortgage banking revenue369 (1,374)
Foreign currency contractsOther income/(expense)(13)38 
Total $1,055 $(386)
(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:
June 30, 2023December 31, 2022
Fair ValueFair Value
(dollars in thousands)Notional
Assets (1)
Liabilities (2)
Notional
Assets (1)
Liabilities (2)
Interest rate lock commitments$45,216 $330 $— $21,401 $93 $— 
Forward mortgage loan contracts61,084 164 — 30,330 32 — 
Customer interest rate swaps (4)
5,589,059 5,621 318,890 5,220,363 5,676 326,924 
Counterparty interest rate swaps (3)(4)
8,206,655 175,581 5,662 5,220,363 151,111 5,711 
Customer foreign currency forward contracts12,851 441 22 8,341 253 42 
Counterparty foreign currency forward contracts12,894 18 262 8,297 72 168 
Total$182,155 $324,836 $157,237 $332,845 
(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.
(4)Gross totals include maturing LIBOR and replacement SOFR interest rate swaps executed as part of reference rate reform.