Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivative Financial Instruments

The following table summarizes the fair value of derivative financial instruments utilized by Old National:

	June 30, 2017				December 31, 2016
(dollars in thousands)	Asset Derivatives		Liability Derivatives		Asset Derivatives		Liability Derivatives
Derivatives designated as hedging instruments
Interest rate contracts	$	2,973	$	9,803	$	3,056	$	11,582
Total derivatives designated as hedging instruments	$	2,973	$	9,803	$	3,056	$	11,582
Derivatives not designated as hedging instruments
Interest rate contracts	$	12,130	$	9,176	$	11,903	$	11,992
Mortgage contracts		1,699		—		2,742		—
Foreign currency contracts		—		13		—		—
Total derivatives not designated as hedging instruments	$	13,829	$	9,189	$	14,645	$	11,992
Total	$	16,802	$	18,992	$	17,701	$	23,574

Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income

The effect of derivative instruments on the consolidated statements of income for the three and six months ended June 30, 2017 and 2016 are as follows:

		Three Months Ended June 30,
(dollars in thousands)		2017			2016
Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (1)	Interest income / (expense)	$	(1,623	)	$	(1,310	)
Interest rate contracts (2)	Other income / (expense)		38			50
Total		$	(1,585	)	$	(1,260	)
Derivatives in Cash Flow Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (1)	Interest income / (expense)	$	81		$	81
Total		$	81		$	81
Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (3)	Other income / (expense)	$	26		$	(81	)
Mortgage contracts	Mortgage banking revenue		451			(35	)
Foreign currency contracts	Other income		(13	)		—
Total		$	464		$	(116	)
		Six Months Ended June 30,
(dollars in thousands)		2017			2016
Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (1)	Interest income / (expense)	$	(3,285	)	$	(2,352	)
Interest rate contracts (2)	Other income / (expense)		73			101
Total		$	(3,212	)	$	(2,251	)
Derivatives in Cash Flow Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (1)	Interest income / (expense)	$	162		$	167
Total		$	162		$	167
Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
Interest rate contracts (3)	Other income / (expense)	$	37		$	(84	)
Mortgage contracts	Mortgage banking revenue		(1,043	)		425
Foreign currency contracts	Other income		(13	)		—
Total		$	(1,019	)	$	341

(1) Amounts represent the net interest payments as stated in the contractual agreements.

(2) Amounts represent ineffectiveness on derivatives designated as fair value hedges.

(3) Includes the valuation differences between the customer and offsetting counterparty swaps.