Fair Value Assets and Liabilities, Fair Value, Recurring Basis (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The table below presents Heartland's assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2012, and December 31, 2011, in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Total Fair Value		Level 1		Level 2		Level 3
June 30, 2012
Trading securities	$	379	$	379	$	—	$	—
Securities available for sale	1,274,552		48,657		1,222,761		3,134
Derivative assets	11,225		—		11,225		—
Total assets at fair value	$	1,286,156	$	49,036	$	1,233,986	$	3,134
Derivative liabilities	$	10,090	$	—	$	10,090	$	—
Total liabilities at fair value	$	10,090	$	—	$	10,090	$	—
December 31, 2011
Trading securities	$	333	$	333	$	—	$	—
Securities available for sale	1,267,999		107,147		1,157,609		3,243
Derivative assets	2,828		—		2,828		—
Total assets at fair value	$	1,271,160	$	107,480	$	1,160,437	$	3,243
Derivative liabilities	$	6,405	$	—	$	6,405	$	—
Total liabilities at fair value	$	6,405	$	—	$	6,405	$	—

Fair Value Measurements, Nonrecurring

The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands:

	Fair Value Measurements at June 30, 2012
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)		Losses
Assets:
Collateral dependent impaired loans:
Commercial	$	6,979	$	—	$	—	$	6,979	$	707
Commercial real estate	50,596		—		—		50,596		1,094
Agricultural and agricultural real estate	13,437		—		—		13,437		—
Residential real estate	5,874		—		—		5,874		276
Consumer	3,322		—		—		3,322		1,785
Total collateral dependent impaired loans	$	80,208	$	—	$	—	$	80,208	$	3,862
Other real estate owned	$	37,941	$	—	$	—	$	37,941	$	2,683

	Fair Value Measurements at December 31, 2011
	Total	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable  Inputs (Level 3)	Losses
Assets:
Collateral dependent impaired loans	94,961	—	—	94,961	$	32,640
Other real estate owned	44,387	—	—	44,387	$	7,079

Fair Value Inputs, Liabilities, Quantitative Information

	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at 6/30/12		Valuation Technique	Unobservable Input	Range (Weighted Average)
Z-Tranche Securities	$	3,134	Discounted cash flows	Pretax discount rate	15.00%
				Actual defaults	13.94-20.94% (15.52%)
				Actual deferrals	6.30-23.71% (11.32%)
Collateral dependent impaired loans:
Commercial real estate	50,596		Modified appraised value	Third party appraisal	NM*
				Appraisal discount	NM*
Commercial	6,979		Modified appraised value	Third party appraisal	NM*
				Appraisal discount	NM*
Agricultural and agricultural real estate	13,437		Modified appraised value	Third party appraisal	NM*
				Appraisal discount	NM*
Residential real estate	5,874		Modified appraised value	Third party appraisal	NM*
				Appraisal discount	NM*
Consumer	3,322		Modified appraised value	Third party appraisal	NM*
				Appraisal discount	NM*
Other real estate owned	37,941		Modified appraised value	Disposal costs	NM*
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The changes in Level 3 assets that are measured at fair value on a recurring basis are summarized in the following table, in thousands:

	For the Six Months Ended			For the Year Ended
	June 30, 2012			December 31, 2011
	Fair Value			Fair Value
Balance at January 1,	$	3,243		$	4,676
Total gains:
Included in earnings	—			(1,424		)
Included in other comprehensive income	(95		)	12
Purchases, issuances, sales and settlements:
Sales	—			(11		)
Settlements	(14		)	(10		)
Balance at period end,	$	3,134		$	3,243

Fair Value, by Balance Sheet Grouping

					Fair Value Measurement at  June 30, 2012						December 31, 2011
(in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	82,831	$	82,831	$	82,831	$	—	$	—	$	129,834	$	129,834
Securities:
Trading	379		379		379		—		—		333		333
Available for sale	1,274,552		1,274,552		48,657		1,222,761		3,134		1,267,999		1,267,999
Held to maturity	56,157		56,120		—		56,120		—		58,260		57,486
Total securities	1,331,088		1,331,051		49,036		1,278,881		3,134		1,326,592		1,325,818
Loans held for sale	73,284		73,331		—		73,331		—		53,528		53,999
Loans, net:
Commercial	657,942		655,969		—		648,990		6,979
Commercial real estate	1,223,207		1,227,403		—		1,176,807		50,596
Agricultural and agricultural real estate	278,141		280,534		—		267,097		13,437
Residential real estate	219,494		211,572		—		205,698		5,874
Consumer	223,304		225,210		—		221,888		3,322
Total Loans, net	2,602,088		2,600,688		—		2,520,480		80,208		2,494,631		2,488,881
Mortgage derivatives	$	11,225	$	11,225	$	—	$	11,225	$	—	$	2,828	$	2,828
Financial liabilities
Deposits
Demand deposits	799,548		799,548		—		799,548		—		737,323		737,323
Savings deposits	1,734,155		1,734,155		—		1,734,155		—		1,678,154		1,678,154
Time deposits	801,204		801,204		—		801,204		—		794,636		794,636
Short term borrowings	249,485		249,485		—		249,485		—		270,081		270,081
Other borrowings	377,543		366,206		—		366,206		—		372,820		352,847
Derivatives	10,090		10,090		—		10,090		—		6,405		6,405