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Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Balance Sheet Category and Fair Values of Derivative Instruments
The table below identifies the notional amount, fair value and balance sheet category of Heartland's fair value hedges at March 31, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
March 31, 2018
 
 
 
 
 
Fair value hedges
$
35,436

 
$
(105
)
 
Other liabilities
December 31, 2017
 
 
 
 
 
Fair value hedges
$
35,635

 
$
(999
)
 
Other liabilities
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at March 31, 2018, and December 31, 2017, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance
Sheet
Category
 
Receive
Rate
 
Weighted
Average
Pay Rate
 
Maturity
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
239

 
Other assets
 
2.178
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(380
)
 
Other liabilities
 
1.704

 
3.355

 
01/07/2020
Interest rate swap
10,000

 
69

 
Other assets
 
2.286

 
1.674

 
03/26/2019
Interest rate swap
10,000

 
68

 
Other assets
 
2.178

 
1.658

 
03/18/2019
Interest rate swap
32,667

 
1,010

 
Other assets
 
4.240

 
3.674

 
05/10/2021
Interest rate swap
20,000

 
316

 
Other assets
 
2.125

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
339

 
Other assets
 
2.006

 
2.352

 
03/01/2024
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
(106
)
 
Other liabilities
 
1.600
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(621
)
 
Other liabilities
 
1.350

 
3.355

 
01/07/2020
Interest rate swap
10,000

 
30

 
Other assets
 
1.329

 
1.674

 
03/26/2019
Interest rate swap
10,000

 
29

 
Other assets
 
1.600

 
1.658

 
03/18/2019
Interest rate swap
33,667

 
759

 
Other assets
 
3.932

 
3.674

 
05/10/2021
Interest rate swap(1)
20,000

 
(177
)
 
Other liabilities
 
1.588

 
2.390

 
06/15/2024
Interest rate swap(2)
20,000

 
(149
)
 
Other Liabilities
 
1.481

 
2.352

 
03/01/2024
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at March 31, 2018, and December 31, 2017, in thousands:
 
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Weighted
Average
Receive
Rate
 
Weighted
Average
Pay
Rate
March 31, 2018
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
162,882

 
$
3,763

 
Other assets
 
4.82
%
 
4.73
%
Customer interest rate swaps
 
162,882

 
(3,763
)
 
Other liabilities
 
4.73

 
4.82

December 31, 2017
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
126,766

 
$
2,377

 
Other assets
 
4.70
%
 
4.03
%
Customer interest rate swaps
 
126,766

 
(2,377
)
 
Other liabilities
 
4.03

 
4.70
Gains (Losses) on Derivative Instruments
The table below identifies the gains and losses recognized on Heartland's fair value hedges for the three month periods ended March 31, 2018, and March 31, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended March 31, 2018
 
 
 
 
Fair value hedges
 
$
894

 
Interest income
Three Months Ended March 31, 2017
 
 
 
 
Fair value hedges
 
$
194

 
Interest income
The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the three-month periods ended March 31, 2018, and March 31, 2017, in thousands:
 
Effective Portion
 
Ineffective Portion
 
Recognized in OCI
 
Reclassified from AOCI into Income
 
Recognized in Income on Derivatives
 
Amount of
Gain (Loss)
 
Category
 
Amount of
Gain (Loss)
 
Category
 
Amount of
Gain (Loss)
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
1,896

 
Interest expense
 
$
(197
)
 
Other income
 
$
—

Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
533

 
Interest expense
 
$
(397
)
 
Other income
 
$
—
Balance Sheet Category and Fair Values of Embedded Derivatives
The table below identifies the notional amount, fair value and balance sheet category of Heartland's embedded derivatives at March 31, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
March 31, 2018
 
 
 
 
 
Embedded derivatives
$
13,907

 
$
461

 
Other assets
December 31, 2017
 
 
 
 
 
Embedded derivatives
$
14,045

 
$
738

 
Other assets


The table below identifies the gains and losses recognized on Heartland's embedded derivatives for the three month periods ended March 31, 2018, and March 31, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended March 31, 2018
 
 
 
 
Embedded derivatives
 
$
277

 
Other noninterest income
Three Months Ended March 31, 2017
 
 
 
 
Embedded derivatives
 
$
117

 
Other noninterest income

The following table identifies, in thousands, the notional amount, fair value, balance sheet category and income statement category for the change in fair value of the embedded conversion option as of March 31, 2018, and December 31, 2017:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
March 31, 2018
 
 
 
 
 
Embedded conversion option
$
—

 
$
—

 
Other liabilities
December 31, 2017
 
 
 
 
 
Embedded conversion option
$
—

 
$
—

 
Other liabilities


The table below identifies the gains and losses recognized on Heartland's embedded conversion options for the three-month periods ended March 31, 2018, and March 31, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended March 31, 2018
 
 
 
 
Embedded conversion option
 
$
—

 
Other noninterest income
Three Months Ended March 31, 2017
 
 
 
 
Embedded conversion option
 
$
97

 
Other noninterest income
Schedule of Other Derivatives Not Designated as Hedging Instruments, Balance Sheet and Income Category
The table below identifies the balance sheet category and fair values of Heartland's other free standing derivative instruments not designated as hedging instruments at March 31, 2018, and December 31, 2017, in thousands:
 
Balance Sheet
Category
 
Notional
Amount
 
Fair
Value
March 31, 2018
 
 
 
 
 
Interest rate lock commitments (mortgage)
Other assets
 
$
65,591

 
$
1,959

Forward commitments
Other assets
 
55,118

 
283

Forward commitments
Other liabilities
 
91,625

 
(320
)
Undesignated interest rate swaps
Other liabilities
 
13,907

 
(461
)
December 31, 2017
 
 


 


Interest rate lock commitments (mortgage)
Other assets
 
$
53,588

 
$
1,738

Forward commitments
Other assets
 
37,286

 
80

Forward commitments
Other liabilities
 
118,632

 
(232
)
Undesignated interest rate swaps
Other liabilities
 
14,045

 
(738
)

The table below identifies the income statement category of the gains and losses recognized in income on Heartland's other free standing derivative instruments not designated as hedging instruments for the three-month periods ended March 31, 2018, and March 31, 2017, in thousands:
 
Income Statement Category
 
Gain (Loss) Recognized
Three Months Ended March 31, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
17

Forward commitments
Net gains on sale of loans held for sale
 
115

Undesignated interest rate swaps
Other noninterest income
 
277

Three Months Ended March 31, 2017
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
1,062

Forward commitments
Net gains on sale of loans held for sale
 
(2,739
)
Undesignated interest rate swaps
Other noninterest income
 
117