Derivative Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Balance Sheet Category and Fair Value of Derivative Instruments Designated as Cash Flow Hedges |
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | | Receive Rate | | Weighted Average Pay Rate | | Maturity | 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 | December 31, 2016 | | | | | | | | | | | | Interest rate swap | $ | 25,000 |
| | $ | (447 | ) | | Other Liabilities | | 0.993 | % | | 2.255 | % | | 03/17/2021 | Interest rate swap | 20,000 |
| | (114 | ) | | Other Liabilities | | 0.931 |
| | 3.220 |
| | 03/01/2017 | Interest rate swap | 20,000 |
| | (1,145 | ) | | Other Liabilities | | 0.868 |
| | 3.355 |
| | 01/07/2020 | Interest rate swap | 10,000 |
| | (42 | ) | | Other Liabilities | | 0.997 |
| | 1.674 |
| | 03/26/2019 | Interest rate swap | 10,000 |
| | (41 | ) | | Other Liabilities | | 0.993 |
| | 1.658 |
| | 03/18/2019 | Interest rate swap | 37,667 |
| | 530 |
| | Other Assets | | 3.164 |
| | 3.674 |
| | 05/10/2021 | Interest rate swap(1) | 20,000 |
| | (214 | ) | | Other Liabilities | | — |
| | 2.390 |
| | 06/15/2024 | Interest rate swap(2) | 20,000 |
| | (262 | ) | | Other Liabilities | | — |
| | 2.352 |
| | 03/01/2024 | | (1) This swap is a forward starting swap with a weighted average pay rate of 2.390% beginning on June 15, 2017. No interest payments were required related to this swap until September 15, 2017. | (2) This swap is a forward starting swap with a weighted average pay rate of 2.352% beginning on March 1, 2017. No interest payments were required on this swap until June 1, 2017. |
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at December 31, 2017 and 2016, in thousands: | | | | | | | | | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | | Weighted Average Receive Rate | | Weighted Average Pay Rate | 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 | % | December 31, 2016 | | | | | | | | | | | Customer interest rate swaps | | $ | 69,594 |
| | $ | 1,588 |
| | Other Assets | | 4.66 | % | | 3.47 | % | Customer interest rate swaps | | 69,594 |
| | (1,588 | ) | | Other Liabilities | | 3.47 | % | | 4.66 | % |
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Gains and Losses Recognized on Derivative Instruments Designated as Cash Flow Hedges |
The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the years ended December 31, 2017, and December 31, 2016, 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) | December 31, 2017 | | | | | | | | | | Interest rate swap | $ | 1,500 |
| | Interest expense | | $ | (1,290 | ) | | Other income | | $ | — |
| December 31, 2016 | | | | | | | | | | Interest rate swap | $ | 1,705 |
| | Interest expense | | $ | (1,914 | ) | | Other income | | $ | — |
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Balance Sheet Category and Fair Values of Embedded Derivatives |
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 December 31, 2017, and December 31, 2016: | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | December 31, 2017 | | | | | | Embedded conversion option | $ | — |
| | $ | — |
| | Other liabilities | December 31, 2016 | | | | | | Embedded conversion option | $ | 558 |
| | $ | (422 | ) | | Other liabilities |
The table below identifies the gains and losses recognized on Heartland's embedded conversion options for the years ended December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | Amount of Gain (Loss) | | Income Statement Category | December 31, 2017 | | | | Embedded conversion option | $ | 422 |
| | Other noninterest income | December 31, 2016 | | | | Embedded conversion option | $ | (100 | ) | | Other noninterest income |
The table below identifies the notional amount, fair value and balance sheet category of Heartland's fair value hedges at December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | December 31, 2017 | | | | | | Fair value hedges | $ | 35,635 |
| | $ | (999 | ) | | Other liabilities | December 31, 2016 | | | | | | Fair value hedges | $ | 40,807 |
| | $ | (1,626 | ) | | Other liabilities |
The table below identifies the gains and losses recognized on Heartland's fair value hedges for the years ended December 31, 2017 and December 31, 2016, in thousands: | | | | | | | | Amount of Gain (Loss) | | Income Statement Category | December 31, 2017 | | | | Fair value hedges | $ | 627 |
| | Interest income | December 31, 2016 | | | | Fair value hedges | $ | (1,005 | ) | | Interest income |
The table below identifies the notional amount, fair value and balance sheet category of Heartland's embedded derivatives as of December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | December 31, 2017 | | | | | | Embedded derivatives | $ | 14,045 |
| | $ | 738 |
| | Other assets | December 31, 2016 | | | | | | Embedded derivatives | $ | 14,549 |
| | $ | 1,104 |
| | Other assets |
The table below identifies the gains and losses recognized on Heartland's embedded derivatives for the years ended December 31, 2017 and December 31, 2016, in thousands: | | | | | | | | Amount of Gain (Loss) | | Income Statement Category | December 31, 2017 | | | | Embedded derivatives | $ | 366 |
| | Other noninterest income | December 31, 2016 | | | | Embedded derivatives | $ | (470 | ) | | Other noninterest income |
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Balance Sheet Category and Fair Values of Derivative Instruments Not Designated as Hedging Instruments |
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 December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | | | | | Notional Amount | | Fair Value | | Balance Sheet Category | December 31, 2017 | | | | | | Interest rate lock commitments (mortgage) | $ | 53,588 |
| | $ | 1,738 |
| | Other Assets | Forward commitments | 37,286 |
| | 80 |
| | Other Assets | Forward commitments | 118,632 |
| | (232 | ) | | Other Liabilities | Undesignated interest rate swaps | 14,045 |
| | (738 | ) | | Other Liabilities | December 31, 2016 |
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| | | Interest rate lock commitments (mortgage) | $ | 80,465 |
| | $ | 2,790 |
| | Other Assets | Forward commitments | 142,750 |
| | 2,546 |
| | Other Assets | Forward commitments | 59,276 |
| | (266 | ) | | Other Liabilities | Undesignated interest rate swaps | 15,564 |
| | (1,126 | ) | | Other Liabilities |
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 years ended December 31, 2017, and December 31, 2016, in thousands: | | | | | | | | Income Statement Category | | Year-to-Date Gain(Loss) Recognized | December 31, 2017 | | | | Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | | $ | (1,479 | ) | Forward commitments | Net gains on sale of loans held for sale | | (2,466 | ) | Forward commitments | Net gains on sale of loans held for sale | | 34 |
| Undesignated interest rate swaps | Other noninterest income | | 388 |
| December 31, 2016 | | | | Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | | $ | (1,564 | ) | Forward commitments | Net gains on sale of loans held for sale | | 2,023 |
| Forward commitments | Net gains on sale of loans held for sale | | 49 |
| Undesignated interest rate swaps | Other noninterest income | | 2,551 |
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