Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Derivative Financial Instruments

The following tables summarize the fair value of derivative financial instruments utilized by Old National:

	Asset Derivatives
	September 30, 2013				December 31, 2012
	Balance				Balance
	Sheet		Fair		Sheet		Fair
(dollars in thousands)	Location		Value		Location		Value
Derivatives designated as hedging instruments
Interest rate contracts		Other assets	$	3,974		Other assets	$	6,458
Total derivatives designated as hedging instruments			$	3,974			$	6,458
Derivatives not designated as hedging instruments
Interest rate contracts		Other assets	$	19,713		Other assets	$	29,475
Mortgage contracts		Other assets		543		Other assets		579
Total derivatives not designated as hedging instruments			$	20,256			$	30,054
Total derivative assets			$	24,230			$	36,512

	Liability Derivatives
	September 30, 2013			December 31, 2012
	Balance			Balance
	Sheet	Fair		Sheet	Fair
(dollars in thousands)	Location	Value		Location	Value
Derivatives designated as hedging instruments
Interest rate contracts	Other liabilities	$	2,188	Other liabilities	$	—
Total derivatives designated as hedging instruments		$	2,188		$	—
Derivatives not designated as hedging instruments
Interest rate contracts	Other liabilities	$	19,970	Other liabilities	$	29,909
Mortgage contracts	Other liabilities		215	Other liabilities		101
Total derivatives not designated as hedging instruments		$	20,185		$	30,010
Total derivative liabilities		$	22,373		$	30,010

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

The effect of derivative instruments on the Consolidated Statement of Income for the three and nine months ended September 30, 2013 and 2012 are as follows:

		Three months			Three months
		ended			ended
(dollars in thousands)		September 30, 2013			September 30, 2012
Derivatives in	Location of Gain or (Loss)	Amount of Gain or (Loss)
Fair Value Hedging	Recognized in Income on	Recognized in Income on
Relationships	Derivative	Derivative
Interest rate contracts (1)	Interest income / (expense)	$	410		$	508
Interest rate contracts (2)	Other income / (expense)		26			203
Total		$	436		$	711
Derivatives in	Location of Gain or (Loss)	Amount of Gain or (Loss)
Cash Flow Hedging	Recognized in Income on	Recognized in Income on
Relationships	Derivative	Derivative
Interest rate contracts (1)	Interest income / (expense)	$	—		$	—
Total		$	—		$	—
	Location of Gain or (Loss)	Amount of Gain or (Loss)
Derivatives Not Designated as	Recognized in Income on	Recognized in Income on
Hedging Instruments	Derivative	Derivative
Interest rate contracts (3)	Other income / (expense)	$	(1	)	$	23
Mortgage contracts	Mortgage banking revenue		(895	)		(19	)
Total		$	(896	)	$	4

		Nine months			Nine months
		ended			ended
(dollars in thousands)		September 30, 2013			September 30, 2012
Derivatives in	Location of Gain or (Loss)	Amount of Gain or (Loss)
Fair Value Hedging	Recognized in Income on	Recognized in Income on
Relationships	Derivative	Derivative
Interest rate contracts (1)	Interest income /  (expense)	$	1,354		$	1,681
Interest rate contracts (2)	Other income / (expense)		(22	)		596
Total		$	1,332		$	2,277
Derivatives in	Location of Gain or (Loss)	Amount of Gain or (Loss)
Cash Flow Hedging	Recognized in Income on	Recognized in Income on
Relationships	Derivative	Derivative
Interest rate contracts (1)	Interest income /  (expense)	$	—		$	241
Total		$	—		$	241
	Location of Gain or (Loss)	Amount of Gain or (Loss)
Derivatives Not Designated as	Recognized in Income on	Recognized in Income on
Hedging Instruments	Derivative	Derivative
Interest rate contracts (3)	Other income / (expense)	$	178		$	61
Mortgage contracts	Mortgage banking revenue		(150	)		75
Total		$	28		$	136

(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.