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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 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 cash flow hedges at September 30, 2018, and December 31, 2017, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance
Sheet
Category
 
Receive
Rate
 
Weighted
Average
Pay Rate
 
Maturity
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
424

 
Other assets
 
2.334
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(186
)
 
Other liabilities
 
2.339

 
3.355

 
01/07/2020
Interest rate swap
10,000

 
42

 
Other assets
 
2.374

 
1.674

 
03/26/2019
Interest rate swap
10,000

 
42

 
Other assets
 
2.334

 
1.658

 
03/18/2019
Interest rate swap
30,667

 
1,089

 
Other assets
 
4.633

 
3.674

 
05/10/2021
Interest rate swap
29,500

 
(33
)
 
Other liabilities
 
4.712

 
5.425

 
07/24/2028
Interest rate swap
20,000

 
652

 
Other assets
 
2.334

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
666

 
Other assets
 
2.321

 
2.352

 
03/01/2024
Interest rate swap
6,000

 
175

 
Other assets
 
2.334

 
1.866

 
06/15/2021
Interest rate swap
3,000

 
92

 
Other assets
 
2.436

 
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
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at September 30, 2018, and December 31, 2017, in thousands:
 
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Weighted
Average
Receive
Rate
 
Weighted
Average
Pay
Rate
September 30, 2018
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
200,241

 
$
5,305

 
Other assets
 
5.07
%
 
4.68
%
Customer interest rate swaps
 
200,241

 
(5,305
)
 
Other liabilities
 
4.68

 
5.07

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 September 30, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
September 30, 2018
 
 
 
 
 
Fair value hedges
$
30,954

 
$
625

 
Other assets
Fair value hedges
4,133

 
(201
)
 
Other liabilities
December 31, 2017
 
 
 
 
 
Fair value hedges
$
35,635

 
$
(999
)
 
Other liabilities
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 nine-month periods ended September 30, 2018, and September 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 September 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
375

 
Interest expense
 
$
21

 
Other income
 
$
—

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
3,198

 
Interest expense
 
$
(207
)
 
Other income
 
$
—

Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
325

 
Interest expense
 
$
(308
)
 
Other income
 
$
—

Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
349

 
Interest expense
 
$
(1,005
)
 
Other income
 
$
—

The table below identifies the gains and losses recognized on Heartland's fair value hedges for the three- and nine- month periods ended September 30, 2018, and September 30, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended September 30, 2018
 
 
 
 
Fair value hedges
 
$
179

 
Interest income
Nine Months Ended September 30, 2018
 
 
 
 
Fair value hedges
 
$
1,423

 
Interest income
Three Months Ended September 30, 2017
 
 
 
 
Fair value hedges
 
$
(63
)
 
Interest income
Nine Months Ended September 30, 2017
 
 
 
 
Fair value hedges
 
$
89

 
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 September 30, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
September 30, 2018
 
 
 
 
 
Embedded derivatives
$
13,643

 
$
215

 
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 nine-month periods ended September 30, 2018, and September 30, 2017, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended September 30, 2018
 
 
 
 
Embedded derivatives
 
$
108

 
Other noninterest income
Nine Months Ended September 30, 2018
 
 
 
 
Embedded derivatives
 
$
523

 
Other noninterest income
Three Months Ended September 30, 2017
 
 
 
 
Embedded derivatives
 
$
(296
)
 
Other noninterest income
Nine Months Ended September 30, 2017
 
 
 
 
Embedded derivatives
 
$
(181
)
 
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 September 30, 2018, and December 31, 2017, in thousands:
 
Balance Sheet
Category
 
Notional
Amount
 
Fair
Value
September 30, 2018
 
 
 
 
 
Interest rate lock commitments (mortgage)
Other assets
 
$
52,649

 
$
1,539

Forward commitments
Other assets
 
82,500

 
353

Forward commitments
Other liabilities
 
33,500

 
(69
)
Undesignated interest rate swaps
Other liabilities
 
13,643

 
(215
)
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 nine-month periods ended September 30, 2018, and September 30, 2017, in thousands:
 
Income Statement Category
 
Gain (Loss) Recognized
Three Months Ended September 30, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(4,470
)
Forward commitments
Net gains on sale of loans held for sale
 
644

Undesignated interest rate swaps
Other noninterest income
 
108

Nine Months Ended September 30, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(1,849
)
Forward commitments
Net gains on sale of loans held for sale
 
352

Undesignated interest rate swaps
Other noninterest income
 
523

Three Months Ended September 30, 2017
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(1,245
)
Forward commitments
Net gains on sale of loans held for sale
 
72

Undesignated interest rate swaps
Other noninterest income
 
88

Nine Months Ended September 30, 2017
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(587
)
Forward commitments
Net gains on sale of loans held for sale
 
(2,304
)
Undesignated interest rate swaps
Other noninterest income
 
203