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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 loan swaps at December 31, 2018 and 2017, in thousands:
 
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Weighted
Average
Receive
Rate
 
Weighted
Average
Pay
Rate
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
%
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 balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at December 31, 2018, and December 31, 2017, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
 
Receive
Rate
 
Weighted Average
Pay Rate
 
Maturity
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
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 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, 2018, and December 31, 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)
December 31, 2018
 
 
 
 
 
 
 
 
 
Interest rate swap
$
995

 
Interest expense
 
$
(179
)
 
Other income
 
$
—

December 31, 2017
 
 
 
 
 
 
 
 
 
Interest rate swap
$
1,500

 
Interest expense
 
$
(1,290
)
 
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 fair value hedges at December 31, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
December 31, 2018
 
 
 
 
 
Fair value hedges
$
19,820

 
$
74

 
Other assets
Fair value hedges
$
15,064

 
$
(339
)
 
Other liabilities
December 31, 2017
 
 
 
 
 
Fair value hedges
$
35,635

 
$
(999
)
 
Other liabilities

The table below identifies the gains and losses recognized on Heartland's fair value hedges for the years ended December 31, 2018 and December 31, 2017, in thousands:
 
Amount of Gain (Loss)
 
Income Statement Category
December 31, 2018
 
 
 
Fair value hedges
$
734

 
Interest income
December 31, 2017
 
 
 
Fair value hedges
$
627

 
Interest income

The table below identifies the notional amount, fair value and balance sheet category of Heartland's embedded derivatives as of December 31, 2018, and December 31, 2017, in thousands:
 
Notional Amount
 
Fair Value
 
Balance Sheet Category
December 31, 2018
 
 
 
 
 
Embedded derivatives
$
11,266

 
$
453

 
Other assets
Embedded derivatives
$
2,231

 
$
(54
)
 
Other liabilities
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 years ended December 31, 2018 and December 31, 2017, in thousands:
 
Amount of Gain (Loss)
 
Income Statement Category
December 31, 2018
 
 
 
Embedded derivatives
$
339

 
Other noninterest income
December 31, 2017
 
 
 
Embedded derivatives
$
366

 
Other noninterest income
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, 2018, and December 31, 2017, in thousands:
 
Notional
Amount
 
Fair
Value
 
Balance Sheet
Category
December 31, 2018
 
 
 
 
 
Interest rate lock commitments (mortgage)
$
22,451

 
$
725

 
Other Assets
Forward commitments
—

 
—

 
Other Assets
Forward commitments
51,500

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

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

 
54

 
Other Assets
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

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, 2018, and December 31, 2017, in thousands:
 
Income Statement Category
 
Year-to-Date
Gain (Loss)
Recognized
December 31, 2018
 
 
 
Interest rate lock commitments (mortgage)
Net gains on sale of loans held for sale
 
$
(3,269
)
Forward commitments
Net gains on sale of loans held for sale
 
(170
)
Forward commitments
Net gains on sale of loans held for sale
 
(161
)
Undesignated interest rate swaps
Other noninterest income
 
339

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