XML 38 R27.htm IDEA: XBRL DOCUMENT v3.20.2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
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, 2020, and December 31, 2019, in thousands:
Notional AmountFair ValueBalance Sheet Category
September 30, 2020
Embedded derivatives $9,308 $758 Other assets
December 31, 2019
Embedded derivatives $9,627 $465 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, 2020, and September 30, 2019, in thousands:

Amount of Gain (Loss)Income Statement Category
Three Months Ended September 30, 2020
Embedded derivatives $(69)Other noninterest income
Nine Months Ended September 30, 2020
Embedded derivatives $293 Other noninterest income
Three Months Ended September 30, 2019
Embedded derivatives $1,389 Other noninterest income
Nine Months Ended September 30, 2019
Embedded derivatives $318 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, 2020, and December 31, 2019, in thousands:

 Balance Sheet CategoryNotional AmountFair Value
September 30, 2020
Interest rate lock commitments (mortgage)Other assets$51,579 $2,255 
Forward commitmentsOther assets24,500 27 
Forward commitmentsOther liabilities72,500 (352)
Undesignated interest rate swapsOther liabilities9,308 (758)
December 31, 2019
Interest rate lock commitments (mortgage)Other assets$20,356 $681 
Forward commitmentsOther assets16,000 15 
Forward commitmentsOther liabilities36,500 (113)
Undesignated interest rate swapsOther liabilities9,627 (465)
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, 2020, and September 30, 2019, in thousands:

 Income Statement CategoryGain (Loss) Recognized
Three Months Ended September 30, 2020
Interest rate lock commitments (mortgage)Net gains on sale of loans held for sale$249 
Forward commitmentsNet gains on sale of loans held for sale(44)
Undesignated interest rate swapsOther noninterest income69 
Nine Months Ended September 30, 2020
Interest rate lock commitments (mortgage)Net gains on sale of loans held for sale$3,243 
Forward commitmentsNet gains on sale of loans held for sale(228)
Undesignated interest rate swapsOther noninterest income(293)
Three Months Ended September 30, 2019
Interest rate lock commitments (mortgage)Net gains on sale of loans held for sale$(255)
Forward commitmentsNet gains on sale of loans held for sale283 
Undesignated interest rate swapsOther noninterest income (1,389)
Nine Months Ended September 30, 2019
Interest rate lock commitments (mortgage)Net gains on sale of loans held for sale$561 
Forward commitmentsNet gains on sale of loans held for sale255 
Undesignated interest rate swapsOther noninterest income (318)
Cash Flow Hedges  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
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, 2020, and December 31, 2019, in thousands:

 Notional
Amount		Fair
Value		Balance
Sheet
Category		Receive
Rate		Weighted
Average
Pay Rate		Maturity
September 30, 2020
Interest rate swap$25,000 $(253)Other liabilities0.246 %2.255 %03/17/2021
Interest rate swap22,667 (147)Other liabilities2.656 3.674 05/10/2021
Interest rate swap23,500 (2,449)Other liabilities2.651 5.425 07/24/2028
Interest rate swap20,000 (1,592)Other liabilities0.250 2.390 06/15/2024
Interest rate swap20,000 (1,488)Other liabilities0.246 2.352 03/01/2024
Interest rate swap6,000 (74)Other liabilities0.250 1.866 06/15/2021
Interest rate swap3,000 (38)Other liabilities0.275 1.878 06/30/2021
December 31, 2019
Interest rate swap$25,000 $(167)Other liabilities1.900 %2.255 %03/17/2021
Interest rate swap20,000 (67)Other liabilities2.043 3.355 01/07/2020
Interest rate swap25,667 135 Other assets4.215 3.674 05/10/2021
Interest rate swap25,750 (1,384)Other liabilities4.280 5.425 07/24/2028
Interest rate swap20,000 (614)Other liabilities1.894 2.390 06/15/2024
Interest rate swap20,000 (561)Other liabilities1.907 2.352 03/01/2024
Interest rate swap6,000 (15)Other liabilities1.894 1.866 06/15/2021
Interest rate swap3,000 (9)Other liabilities1.831 1.878 06/30/2021
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, 2020, and September 30, 2019, in thousands:

Effective PortionIneffective Portion
 Recognized in OCIReclassified from AOCI into IncomeRecognized in Income on Derivatives
Amount of
Gain (Loss)		CategoryAmount of
Gain (Loss)		CategoryAmount of
Gain (Loss)
Three Months Ended September 30, 2020
Interest rate swaps$(604)Interest expense$595 Other income$— 
Nine Months Ended September 30, 2020
Interest rate swaps$(3,359)Interest expense$1,195 Other income$— 
Three Months Ended September 30, 2019
Interest rate swaps $(766)Interest expense$(31)Other income$— 
Nine Months Ended September 30, 2019
Interest rate swaps $(4,269)Interest expense$(296)Other income$— 
Fair value hedges  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
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 September 30, 2020, and December 31, 2019, in thousands:

Notional AmountFair ValueBalance Sheet Category
September 30, 2020
Fair value hedges$20,946 $(2,900)Other liabilities
December 31, 2019
Fair value hedges $21,250 $(1,253)Other liabilities
Gains (Losses) on Derivative Instruments
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, 2020, and September 30, 2019, in thousands:

Amount of Gain (Loss)Income Statement Category
Three Months Ended September 30, 2020
Fair value hedges$26 Interest income
Nine Months Ended September 30, 2020
Fair value hedges$(1,647)Interest income
Three Months Ended September 30, 2019
Fair value hedges$(263)Interest income
Nine Months Ended September 30, 2019
Fair value hedges$(1,553)Interest income
Loan Swap Hedges  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
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 September 30, 2020, and December 31, 2019, in thousands:
Notional
Amount		Fair
Value 		Balance Sheet
Category		Weighted
Average
Receive Rate		Weighted
Average
Pay Rate
September 30, 2020
Customer interest rate swaps$443,856 $49,629 Other assets4.46 %2.45 %
Customer interest rate swaps443,856 (49,629)Other liabilities2.45 4.46 
December 31, 2019
Customer interest rate swaps$374,191 $16,927 Other assets4.68 %4.05 %
Customer interest rate swaps374,191 (16,927)Other liabilities4.05 4.68