Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of June 30, 2013, and December 31, 2012, are summarized in the table below, in thousands:

Securities available for sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2013
U.S. government corporations and agencies	$	3,992	$	126	$	—		$	4,118
Mortgage-backed securities	1,065,779		10,639		(16,245		)	1,060,173
Obligations of states and political subdivisions	443,216		9,162		(15,956		)	436,422
Total debt securities	1,512,987		19,927		(32,201		)	1,500,713
Equity securities	20,952		753		—			21,705
Total	$	1,533,939	$	20,680	$	(32,201	)	$	1,522,418
December 31, 2012
U.S. government corporations and agencies	$	21,002	$	443	$	(1	)	$	21,444
Mortgage-backed securities	1,027,234		19,002		(10,035		)	1,036,201
Obligations of states and political subdivisions	403,077		23,560		(192		)	426,445
Total debt securities	1,451,313		43,005		(10,228		)	1,484,090
Equity securities	21,252		733		—			21,985
Total	$	1,472,565	$	43,738	$	(10,228	)	$	1,506,075

Held-to-maturity Securities

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of June 30, 2013, and December 31, 2012, are summarized in the table below, in thousands:

Securities held to maturity	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2013
Mortgage-backed securities	$	6,931	$	323	$	(327	)	$	6,927
Obligations of states and political subdivisions	48,268		—		—			48,268
Total	$	55,199	$	323	$	(327	)	$	55,195
December 31, 2012
Mortgage-backed securities	$	7,040	$	492	$	(12	)	$	7,520
Obligations of states and political subdivisions	48,462		—		—			48,462
Total	$	55,502	$	492	$	(12	)	$	55,982

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities available for sale at June 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

Securities available for sale
	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	3,491	$	3,541
Due in 1 to 5 years	33,469		34,752
Due in 5 to 10 years	54,216		55,442
Due after 10 years	356,032		346,805
Total debt securities	447,208		440,540
Mortgage-backed securities	1,065,779		1,060,173
Equity securities	20,952		21,705
Total investment securities	$	1,533,939	$	1,522,418

The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

Securities held to maturity
	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	—	$	—
Due in 1 to 5 years	1,282		1,282
Due in 5 to 10 years	9,350		9,350
Due after 10 years	37,636		37,636
Total debt securities	48,268		48,268
Mortgage-backed securities	6,931		6,927
Total investment securities	$	55,199	$	55,195

Schedule of Realized Gain (Loss)

Gross gains and losses realized related to the sales of securities for the three and six month periods ended June 30, 2013 are summarized as follows, in thousands:

Securities sold	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013	2012
Proceeds from sales	$	124,344	$	216,787	217,139	$	341,151
Gross security gains	2,662		5,366		6,283	9,380
Gross security losses	595		415		789	486

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of June 30, 2013, and December 31, 2012. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was June 30, 2012, and December 31, 2011, respectively. Securities for which Heartland has taken credit-related OTTI write-downs are categorized as being "less than 12 months" or "12 months or longer" in a continuous loss position based on the point in time that the fair value declined to below the cost basis and not the period of time since the credit-related OTTI write-down.

Securities available for sale	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2013
U.S. government corporations and agencies	$	—	$	—		$	—	$	—		$	—	$	—
Mortgage-backed securities	567,337		(15,408		)	23,970		(837		)	591,307		(16,245		)
Obligations of states and political subdivisions	246,262		(15,956		)	—		—			246,262		(15,956		)
Total temporarily impaired securities	$	813,599	$	(31,364	)	$	23,970	$	(837	)	$	837,569	$	(32,201	)
December 31, 2012
U.S. government corporations and agencies	$	1,517	$	(1	)	$	—	$	—		$	1,517	$	(1	)
Mortgage-backed securities	332,842		(9,121		)	24,489		(914		)	357,331		(10,035		)
Obligations of states and political subdivisions	22,503		(192		)	—		—			22,503		(192		)
Total temporarily impaired securities	$	356,862	$	(9,314	)	$	24,489	$	(914	)	$	381,351	$	(10,228	)

Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value

Securities held to maturity	Less than 12 months				12 months or longer					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2013
Mortgage-backed securities	$	—	$	—	$	3,055	$	(327	)	$	3,055	$	(327	)
Obligations of states and political subdivisions	—		—		—		—			—		—
Total temporarily impaired securities	$	—	$	—	$	3,055	$	(327	)	$	3,055	$	(327	)
December 31, 2012
Mortgage-backed securities	$	—	$	—	$	3,296	$	(12	)	$	3,296	$	(12	)
Obligations of states and political subdivisions	—		—		—		—			—		—
Total temporarily impaired securities	$	—	$	—	$	3,296	$	(12	)	$	3,296	$	(12	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table shows the detail of total OTTI write-downs included in earnings, in thousands:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Available for sale debt securities:
Mortgage backed securities	$	—	$	—	$	—	$	184
Held to maturity debt securities:
Mortgage backed securities	—		—		—		797
Total debt security OTTI write-downs included in earnings	$	—	$	—	$	—	$	981

The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income ("AOCI") for the same securities, in thousands:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Recorded as part of gross realized losses:
Credit related OTTI	$	—		$	—		$	—		$	981
Intent to sell OTTI	—			—			—			—
Total recorded as part of gross realized losses	—			—			—			981
Recorded directly to AOCI for non-credit related impairment:
Residential mortgage backed securities	—			—			—			683
Accretion of non-credit related impairment	(24		)	(23		)	(48		)	(23		)
Total changes to AOCI for non-credit related impairment	(24		)	(23		)	(48		)	660
Total OTTI losses (accretion) recorded on debt securities, net	$	(24	)	$	(23	)	$	(48	)	$	1,641