Covered Loans (Tables)

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Composition of Covered Loans by Lending Classification

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

	At June 30, 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	$	4,355		$	8,603		$	12,958
Commercial real estate		31,538			7,372			38,910
Residential		19,129			152			19,281
Consumer		10,516			53,742			64,258
Covered loans		65,538			69,869			135,407
Allowance for loan losses		(659	)		(1,053	)		(1,712	)
Covered loans, net	$	64,879		$	68,816		$	133,695

(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 six months ended June 30, 2015 and 2014:

(dollars in thousands)	Contractual Cash Flows (1)			Nonaccretable Difference			Accretable Yield			Carrying Amount (2)
Six Months Ended June 30, 2015
Balance at January 1, 2015	$	124,809		$	(12,014	)	$	(35,742	)	$	77,053
Principal reductions and interest payments		(18,178	)		(814	)		—			(18,992	)
Accretion of loan discount		—			—			7,259			7,259
Changes in contractual and expected cash flows due to remeasurement		(3,633	)		4,412			(733	)		46
Removals due to foreclosure or sale		(506	)		162			(143	)		(487	)
Balance at June 30, 2015	$	102,492		$	(8,254	)	$	(29,359	)	$	64,879
Six Months Ended June 30, 2014
Balance at January 1, 2014	$	251,042		$	(46,793	)	$	(73,211	)	$	131,038
Principal reductions and interest payments		(56,475	)		(828	)		(940	)		(58,243	)
Accretion of loan discount		—			—			24,950			24,950
Changes in contractual and expected cash flows due to remeasurement		(6,170	)		23,017			(14,494	)		2,353
Removals due to foreclosure or sale		(6,138	)		1,670			(965	)		(5,433	)
Balance at June 30, 2014	$	182,259		$	(22,934	)	$	(64,660	)	$	94,665

(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		(7,259	)		(24,950	)
Reclassifications from (to) nonaccretable difference		733			14,494
Disposals/other adjustments		143			1,905
Balance at June 30,	$	29,359		$	64,660

Summary of FDIC Loss Sharing Asset

The following table shows a detailed analysis of the FDIC loss sharing asset for the six months ended June 30, 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		(2,231	)		(20,306	)
Other		612			1,037
Adjustments reflected in income:
(Amortization) accretion		(3,830	)		(15,988	)
Higher (lower) loan loss expectations		109			(18	)
Write-downs/(gain) on sale of other real estate		1,212			(1,807	)
Balance at June 30,	$	16,475		$	51,431