Covered Loans (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Composition of Covered Loans by Lending Classification

The composition of covered loans by lending classification was as follows:

	At March 31, 2015
(dollars in thousands)	Loans Accounted for Under ASC 310-30 (Purchased Credit Impaired)			Loans excluded from ASC 310-30 (1) (Not Purchased Credit Impaired)			Total Covered Purchased Loans
Commercial	$	5,255		$	8,574		$	13,829
Commercial real estate		33,540			2,959			36,499
Residential		20,101			147			20,248
Consumer		11,671			54,593			66,264
Covered loans		70,567			66,273			136,840
Allowance for loan losses		(802	)		(1,401	)		(2,203	)
Covered loans, net	$	69,765		$	64,872		$	134,637

(1) Includes loans with revolving privileges which are scoped out of FASB ASC 310-30 and certain loans which Old National elected to treat under the cost recovery method of accounting.

Schedule of Acquired Impaired Loans

The following table is a roll-forward of acquired impaired loans accounted for under ASC 310-30 for the three months ended March 31, 2015 and 2014:

(dollars in thousands)	Contractual Cash Flows (1)			Nonaccretable Difference			Accretable Yield			Carrying Amount (2)
2015
Balance at January 1, 2015	$	124,809		$	(12,014	)	$	(35,742	)	$	77,053
Principal reductions and interest payments		(9,566	)		(702	)		—			(10,268	)
Accretion of loan discount		—			—			3,344			3,344
Changes in contractual and expected cash flows due to remeasurement		(498	)		3,695			(3,132	)		65
Removals due to foreclosure or sale		(433	)		133			(129	)		(429	)
Balance at March 31, 2015	$	114,312		$	(8,888	)	$	(35,659	)	$	69,765
2014
Balance at January 1, 2014	$	251,042		$	(46,793	)	$	(73,211	)	$	131,038
Principal reductions and interest payments		(25,353	)		(221	)		—			(25,574	)
Accretion of loan discount		—			—			11,339			11,339
Changes in contractual and expected cash flows due to remeasurement		(3,159	)		18,105			(13,412	)		1,534
Removals due to foreclosure or sale		(3,133	)		1,302			(2,006	)		(3,837	)
Balance at March 31, 2014	$	219,397		$	(27,607	)	$	(77,290	)	$	114,500

(1) The balance of contractual cash flows includes future contractual interest and is net of amounts charged off and interest collected on nonaccrual loans.

(2) Carrying amount for this table is net of allowance for loan losses.

Schedule of Accretable Yield, or Income Expected to be Collected

Accretable yield, or income expected to be collected on the covered loans accounted for under ASC 310-30, is as follows:

(dollars in thousands)	2015			2014
Balance at January 1,	$	35,742		$	73,211
Accretion of income		(3,344	)		(11,339	)
Reclassifications from (to) nonaccretable difference		3,132			13,412
Disposals/other adjustments		129			2,006
Balance at March 31,	$	35,659		$	77,290

Summary of FDIC Loss Sharing Asset

The following table shows a detailed analysis of the FDIC loss sharing asset for the three months ended March 31, 2015 and 2014:

(dollars in thousands)	2015			2014
Balance at January 1,	$	20,603		$	88,513
Adjustments not reflected in income:
Cash received from FDIC		—			(15,989	)
Other		389			518
Adjustments reflected in income:
(Amortization) accretion		(1,986	)		(5,203	)
Higher (lower) loan loss expectations		—			(412	)
Write-downs/(gain) on sale of other real estate		1,018			(1,728	)
Balance at March 31,	$	20,024		$	65,699