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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Balance Sheet Category and Fair Values of Derivative Instruments
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at June 30, 2018, and December 31, 2017, in thousands:
 
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Weighted
Average
Receive
Rate
 
Weighted
Average
Pay
Rate
June 30, 2018
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
172,421

 
$
4,640

 
Other assets
 
4.88
%
 
3.98
%
Customer interest rate swaps
 
172,421

 
(4,640
)
 
Other liabilities
 
3.98

 
4.88

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

The table below identifies the notional amount, fair value and balance sheet category of Heartland's fair value hedges at June 30, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
June 30, 2018
 
 
 
 
 
Fair value hedges
$
35,270

 
$
245

 
Other assets
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 June 30, 2018, and December 31, 2017, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance
Sheet
Category
 
Receive
Rate
 
Weighted
Average
Pay Rate
 
Maturity
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
361

 
Other assets
 
2.335
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(252
)
 
Other liabilities
 
2.331

 
3.355

 
01/07/2020
Interest rate swap
10,000

 
61

 
Other assets
 
2.339

 
1.674

 
03/26/2019
Interest rate swap
10,000

 
61

 
Other assets
 
2.335

 
1.658

 
03/18/2019
Interest rate swap
31,667

 
1,082

 
Other assets
 
4.546

 
3.674

 
05/10/2021
Interest rate swap
20,000

 
502

 
Other assets
 
2.341

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
523

 
Other assets
 
2.300

 
2.352

 
03/01/2024
Interest rate swap
6,000

 
164

 
Other assets
 
2.341

 
1.866

 
06/15/2021
Interest rate swap
3,000

 
86

 
Other assets
 
2.348

 
1.878

 
06/30/2021
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
20,000

 
(177
)
 
Other liabilities
 
1.588

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
(149
)
 
Other Liabilities
 
1.481

 
2.352

 
03/01/2024
Gains (Losses) on Derivative Instruments
The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the three- and six-month periods ended June 30, 2018, and June 30, 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 June 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
927

 
Interest expense
 
$
(30
)
 
Other income
 
$
—

Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
2,823

 
Interest expense
 
$
(227
)
 
Other income
 
$
—

Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
(509
)
 
Interest expense
 
$
(300
)
 
Other income
 
$
—

Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
24

 
Interest expense
 
$
(697
)
 
Other income
 
$
—

The table below identifies the gains and losses recognized on Heartland's fair value hedges for the three- and six- month periods ended June 30, 2018, and June 30, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended June 30, 2018
 
 
 
 
Fair value hedges
 
$
350

 
Interest income
Six Months Ended June 30, 2018
 
 
 
 
Fair value hedges
 
$
1,244

 
Interest income
Three Months Ended June 30, 2017
 
 
 
 
Fair value hedges
 
$
(42
)
 
Interest income
Six Months Ended June 30, 2017
 
 
 
 
Fair value hedges
 
$
152

 
Interest 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 June 30, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
June 30, 2018
 
 
 
 
 
Embedded derivatives
$
13,778

 
$
323

 
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- and six-month periods ended June 30, 2018, and June 30, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended June 30, 2018
 
 
 
 
Embedded derivatives
 
$
138

 
Other noninterest income
Six Months Ended June 30, 2018
 
 
 
 
Embedded derivatives
 
$
415

 
Other noninterest income
Three Months Ended June 30, 2017
 
 
 
 
Embedded derivatives
 
$
(2
)
 
Other noninterest income
Six Months Ended June 30, 2017
 
 
 
 
Embedded derivatives
 
$
115

 
Other noninterest income


For the three- and six-month periods ended June 30, 2018, no other noninterest income was recorded for the embedded conversion option. For the three- and six-month periods ended June 30, 2017, $40,000 and $137,000, respectively, was recorded in other noninterest income for the embedded conversion option.
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 June 30, 2018, and December 31, 2017, in thousands:
 
Balance Sheet
Category
 
Notional
Amount
 
Fair
Value
June 30, 2018
 
 
 
 
 
Interest rate lock commitments (mortgage)
Other assets
 
$
99,410

 
$
3,395

Forward commitments
Other assets
 
47,025

 
153

Forward commitments
Other liabilities
 
148,919

 
(597
)
Undesignated interest rate swaps
Other liabilities
 
13,778

 
(323
)
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- and six-month periods ended June 30, 2018, and June 30, 2017, in thousands:
 
Income Statement Category
 
Gain (Loss) Recognized
Three Months Ended June 30, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
2,604

Forward commitments
Net gains on sale of loans held for sale
 
(407
)
Undesignated interest rate swaps
Other noninterest income
 
138

Six Months Ended June 30, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
2,621

Forward commitments
Net gains on sale of loans held for sale
 
(292
)
Undesignated interest rate swaps
Other noninterest income
 
415

Three Months Ended June 30, 2017
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(404
)
Forward commitments
Net gains on sale of loans held for sale
 
364

Undesignated interest rate swaps
Other noninterest income
 
(20
)
Six Months Ended June 30, 2017
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
658

Forward commitments
Net gains on sale of loans held for sale
 
(2,375
)
Undesignated interest rate swaps
Other noninterest income
 
137