XML 45 R25.htm IDEA: XBRL DOCUMENT v3.23.3
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Balance Sheet Category and Fair Values of Embedded Derivatives The table below identifies the balance sheet category and fair value of HTLF's derivative instrument designated as a cash flow hedge at December 31, 2022, in thousands:
Notional AmountFair Value Balance Sheet Category
December 31, 2022
Interest rate swap$500,000 $13 Other Assets
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Hedged item (loans receivable held to maturity)$(11,144)$(34)$(24,026)$(117)
Hedged item (securities carried at fair value)(36,362)— (65,872)— 
Derivatives designated as hedging instruments on loans receivable held to maturity10,769 39 23,655 161 
Derivatives designated as hedging instruments on securities carried at fair value35,236 — 64,820 — 
The table below identifies the notional amount, fair value and balance sheet category of the embedded derivatives at September 30, 2023, and December 31, 2022, in thousands:
Notional AmountFair ValueBalance Sheet Category
September 30, 2023
Embedded derivatives $4,185 $109 Other assets
December 31, 2022
Embedded derivatives $6,028 $135 Other assets

The table below identifies the gains and losses recognized on HTLF's embedded derivatives for the three- and nine- months ended September 30, 2023, and September 30, 2022, in thousands:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Gain (loss) recognized in other noninterest income on embedded derivatives$(9)$121 $(26)$446 
Gains (Losses) on Derivative Instruments
The table below identifies the gains and losses recognized on HTLF's terminated derivative instruments designated as cash flow hedges for the three and nine months ended September 30, 2023, and September 30, 2022, in thousands:
Recognized in OCIReclassified from AOCI into Income
Amount of Gain (Loss)CategoryAmount of Gain (Loss)
Three Months Ended September 30, 2023
Interest rate swap$— Interest income$63 
Nine Months Ended September 30, 2023
Interest rate swap$1,952 Interest income$(638)
Three Months Ended September 30, 2022
Interest rate swap $— Interest income$— 
Nine Months Ended September 30, 2022
Interest rate swap $— Interest income$— 
The table below identifies the net impact to interest income recognized on HTLF's fair value hedges specific to the fair value remeasurements and the income statement classification where it is recorded in comparison to the total amount of interest income presented on the consolidated statements of income for the three- and nine- months ended September 30, 2023, and September 30, 2022, in thousands:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Gain (loss) recognized in interest income and fees on loans $(375)$$(371)$44 
Total amount of interest and fees on loans182,394 122,913 505,136 334,000 
Gain (loss) recognized in interest income on securities-taxable(1,126)— (1,052)— 
Total amount of interest on securities-taxable54,800 45,648 168,948 116,366 
Balance Sheet Category and Fair Values of Derivative Instruments
The table below identifies the fair value of the interest rate swaps designated as fair value hedges and the balance sheet category of the interest rate swaps as of September 30, 2023 and December 31, 2022, in thousands:
Fair ValueBalance Sheet Category
September 30, 2023
Interest rate swaps-loans receivable held to maturity$24,998 Other assets
Interest rate swaps-securities carried at fair value66,853 Other assets
December 31, 2022
Interest rate swaps-loans receivable held to maturity54 Other assets

The table below identifies the carrying amount of the hedged assets and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets that are designated as fair value hedge accounting relationships at September 30, 2023, and December 31, 2022, in thousands:
Location in the consolidated
balance sheet
Carrying Amount of
the Hedged Assets
Cumulative Amount of Fair Value
Hedging Adjustment Included in
Carrying Amount of Hedged Assets
September 30, 2023
Interest rate swapLoans receivable held to maturity$2,476,983 $(23,707)
Interest rate swapSecurities carried at fair value 729,528(64,820)
December 31, 2022
Interest rate swap Loans receivable held to maturity$1,185 $(54)
The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at September 30, 2023, and December 31, 2022, in thousands:
Notional
Amount
Fair
Value
Balance Sheet
Category
September 30, 2023
Customer interest rate swaps$1,500,715 $75,965 Other assets
Customer interest rate swaps1,500,715 (75,965)Other liabilities
December 31, 2022
Customer interest rate swaps$819,662 $46,091 Other assets
Customer interest rate swaps819,662 (46,091)Other liabilities
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 HTLF's other free standing derivative instruments not designated as hedging instruments at September 30, 2023, and December 31, 2022, in thousands:
 Balance Sheet CategoryNotional AmountFair Value
September 30, 2023
Interest rate lock commitments (mortgage)Other assets$4,000 $99 
Forward commitmentsOther assets7,500 41 
Forward commitmentsOther liabilities 1,750 (5)
Undesignated interest rate swapsOther liabilities4,185 (109)
December 31, 2022
Interest rate lock commitments (mortgage)Other assets$9,340 $174 
Forward commitmentsOther assets6,400 47 
Forward commitmentsOther liabilities5,750 (99)
Undesignated interest rate swapsOther liabilities6,028 (135)
HTLF recognizes gains and losses on other free standing derivatives in two separate income statement categories. Interest rate lock commitments and forward commitments are recognized in net gains on sale of loans held for sale and undesignated interest rate swaps are recognized in other noninterest income. The table below identifies the gains and losses recognized in income on HTLF's other free standing derivative instruments not designated as hedging instruments for the three- and nine- months ended September 30, 2023, and September 30, 2022, in thousands:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Interest rate lock commitments (mortgage)$(352)$(1,337)$(70)$(2,009)
Forward commitments(4)813 87 881 
Undesignated interest rate swaps(121)26 (446)