XML 38 R27.htm IDEA: XBRL DOCUMENT v3.19.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2019
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, 2019, and December 31, 2018, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
March 31, 2019
 
 
 
 
 
Fair value hedges
$
670

 
$
5

 
Other assets
Fair value hedges
28,749

 
(900
)
 
Other liabilities
December 31, 2018
 
 
 
 
 
Fair value hedges
$
19,820

 
$
74

 
Other assets
Fair value hedges
$
15,064

 
$
(339
)
 
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, 2019, and December 31, 2018, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance
Sheet
Category
 
Receive
Rate
 
Weighted
Average
Pay Rate
 
Maturity
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
50

 
Other assets
 
2.615
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(153
)
 
Other liabilities
 
2.795

 
3.355

 
01/07/2020
Interest rate swap
28,667

 
563

 
Other assets
 
4.993

 
3.674

 
05/10/2021
Interest rate swap
28,000

 
(897
)
 
Other liabilities
 
4.986

 
5.425

 
07/24/2028
Interest rate swap
20,000

 
(141
)
 
Other liabilities
 
2.611

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
(99
)
 
Other liabilities
 
2.626

 
2.352

 
03/01/2024
Interest rate swap
6,000

 
62

 
Other assets
 
2.611

 
1.866

 
06/15/2021
Interest rate swap
3,000

 
35

 
Other assets
 
2.787

 
1.878

 
06/30/2021
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap
$
25,000

 
$
191

 
Other assets
 
2.788
%
 
2.255
%
 
03/17/2021
Interest rate swap
20,000

 
(177
)
 
Other liabilities
 
2.408

 
3.355

 
01/07/2020
Interest rate swap
10,000

 
29

 
Other assets
 
2.822

 
1.674

 
03/26/2019
Interest rate swap
10,000

 
28

 
Other assets
 
2.788

 
1.658

 
03/18/2019
Interest rate swap
29,667

 
763

 
Other assets
 
4.887

 
3.674

 
05/10/2021
Interest rate swap
28,750

 
(572
)
 
Other liabilities
 
5.004

 
5.425

 
07/24/2028
Interest rate swap
20,000

 
157

 
Other assets
 
2.788

 
2.390

 
06/15/2024
Interest rate swap
20,000

 
185

 
Other assets
 
2.738

 
2.352

 
03/01/2024
Interest rate swap
6,000

 
105

 
Other Assets
 
2.788

 
1.866

 
06/15/2021
Interest rate swap
3,000

 
51

 
Other assets
 
2.787

 
1.878

 
06/30/2021
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at March 31, 2019, and December 31, 2018, in thousands:
 
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Weighted
Average
Receive
Rate
 
Weighted
Average
Pay
Rate
March 31, 2019
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
233,665

 
$
7,654

 
Other assets
 
5.15
%
 
5.05
%
Customer interest rate swaps
 
233,665

 
(7,654
)
 
Other liabilities
 
5.05

 
5.15

December 31, 2018
 
 
 
 
 
 
 
 
 
 
Customer interest rate swaps
 
$
211,246

 
$
4,449

 
Other assets
 
5.10
%
 
4.96
%
Customer interest rate swaps
 
211,246

 
(4,449
)
 
Other liabilities
 
4.96

 
5.10
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, 2019, and March 31, 2018, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended March 31, 2019
 
 
 
 
Fair value hedges
 
$
(630
)
 
Interest income
Three Months Ended March 31, 2018
 
 
 
 
Fair value hedges
 
$
894

 
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, 2019, and March 31, 2018, 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, 2019
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
(1,340
)
 
Interest expense
 
$
(165
)
 
Other income
 
$
—

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
1,896

 
Interest expense
 
$
(197
)
 
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, 2019, and December 31, 2018, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
March 31, 2019
 
 
 
 
 
Embedded derivatives
$
2,216

 
$
17

 
Other assets
Embedded derivatives
$
9,785

 
$
(507
)
 
Other liabilities
December 31, 2018
 
 
 
 
 
Embedded derivatives
$
11,266

 
$
453

 
Other assets
Embedded derivatives
$
2,231

 
$
(54
)
 
Other liabilities


The table below identifies the gains and losses recognized on Heartland's embedded derivatives for the three-month periods ended March 31, 2019, and March 31, 2018, in thousands:
 
 
Amount of Gain (Loss)
 
Income Statement Category
Three Months Ended March 31, 2019
 
 
 
 
Embedded derivatives
 
$
889

 
Other noninterest income
Three Months Ended March 31, 2018
 
 
 
 
Embedded derivatives
 
$
277

 
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, 2019, and December 31, 2018, in thousands:
 
Balance Sheet
Category
 
Notional
Amount
 
Fair
Value
March 31, 2019
 
 
 
 
 
Interest rate lock commitments (mortgage)
Other assets
 
$
25,318

 
$
800

Forward commitments
Other assets
 
1,000

 
—

Forward commitments
Other liabilities
 
46,000

 
(282
)
Undesignated interest rate swaps
Other liabilities
 
9,785

 
(507
)
Undesignated interest rate swaps
Other assets
 
2,216

 
17

December 31, 2018
 
 


 


Interest rate lock commitments (mortgage)
Other assets
 
$
22,451

 
$
725

Forward commitments
Other assets
 
—

 
—

Forward commitments
Other liabilities
 
51,500

 
(399
)
Undesignated interest rate swaps
Other liabilities
 
11,266

 
(453
)
Undesignated interest rate swaps
Other assets
 
2,231

 
54


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, 2019, and March 31, 2018, in thousands:
 
Income Statement Category
 
Gain (Loss) Recognized
Three Months Ended March 31, 2019
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
264

Forward commitments
Net gains on sale of loans held for sale
 
117

Undesignated interest rate swaps
Other noninterest income
 
889

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