Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2015, and December 31, 2014, are summarized in the table below, in thousands:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2015
U.S. government corporations and agencies	$	45,147	$	200	$	(17	)	$	45,330
Mortgage-backed securities	1,145,969		17,436		(9,054		)	1,154,351
Obligations of states and political subdivisions	143,996		4,179		(153		)	148,022
Corporate debt securities	740		—		—			740
Total debt securities	1,335,852		21,815		(9,224		)	1,348,443
Equity securities	5,037		57		—			5,094
Total	$	1,340,889	$	21,872	$	(9,224	)	$	1,353,537
December 31, 2014
U.S. government corporations and agencies	$	24,010	$	98	$	(15	)	$	24,093
Mortgage-backed securities	1,219,305		11,929		(11,968		)	1,219,266
Obligations of states and political subdivisions	148,450		5,304		(328		)	153,426
Corporate debt securities	—		—		—			—
Total debt securities	1,391,765		17,331		(12,311		)	1,396,785
Equity securities	5,029		54		—			5,083
Total	$	1,396,794	$	17,385	$	(12,311	)	$	1,401,868

Held-to-maturity Securities

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of March 31, 2015, and December 31, 2014, are summarized in the table below, in thousands:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2015
Mortgage-backed securities	$	5,665	$	213	$	(754	)	$	5,124
Obligations of states and political subdivisions	278,365		15,013		(842		)	292,536
Total	$	284,030	$	15,226	$	(1,596	)	$	297,660
December 31, 2014
Mortgage-backed securities	$	5,734	$	217	$	(667	)	$	5,284
Obligations of states and political subdivisions	278,853		13,576		(945		)	291,484
Total	$	284,587	$	13,793	$	(1,612	)	$	296,768

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities available for sale at March 31, 2015, 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.



	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	5,045	$	5,084
Due in 1 to 5 years	58,373		58,616
Due in 5 to 10 years	42,873		43,658
Due after 10 years	83,592		86,734
Total debt securities	189,883		194,092
Mortgage-backed securities	1,145,969		1,154,351
Equity securities	5,037		5,094
Total investment securities	$	1,340,889	$	1,353,537

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2015, 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.



	Amortized Cost		Estimated Fair Value
Due in 1 year or less	$	2,614	$	2,685
Due in 1 to 5 years	12,824		13,388
Due in 5 to 10 years	58,448		61,314
Due after 10 years	204,479		215,149
Total debt securities	278,365		292,536
Mortgage-backed securities	5,665		5,124
Total investment securities	$	284,030	$	297,660

Schedule of Realized Gain (Loss)

Gross gains and losses realized related to the sales of securities available for sale for the three month periods ended March 31, 2015, and 2014, are summarized as follows, in thousands:



	Three Months Ended March 31,
	2015		2014
Proceeds from sales	$	289,466	$	355,288
Gross security gains	4,622		2,472
Gross security losses	269		1,691

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 March 31, 2015, and December 31, 2014. 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 March 31, 2014, and December 31, 2013, 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
March 31, 2015
U.S. government corporations and agencies	$	15,042	$	(17	)	$	—	$	—		$	15,042	$	(17	)
Mortgage-backed securities	244,994		(7,208		)	124,196		(1,846		)	369,190		(9,054		)
Obligations of states and political subdivisions	6,928		(72		)	9,975		(81		)	16,903		(153		)
Total temporarily impaired securities	$	266,964	$	(7,297	)	$	134,171	$	(1,927	)	$	401,135	$	(9,224	)
December 31, 2014
U.S. government corporations and agencies	$	6,042	$	(15	)	$	—	$	—		$	6,042	$	(15	)
Mortgage-backed securities	327,363		(7,391		)	306,078		(4,577		)	633,441		(11,968		)
Obligations of states and political subdivisions	886		(6		)	20,507		(322		)	21,393		(328		)
Total temporarily impaired securities	$	334,291	$	(7,412	)	$	326,585	$	(4,899	)	$	660,876	$	(12,311	)

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
March 31, 2015
Mortgage-backed securities	$	—	$	—		$	1,944	$	(754	)	$	1,944	$	(754	)
Obligations of states and political subdivisions	3,605		(392		)	16,503		(450		)	20,108		(842		)
Total temporarily impaired securities	$	3,605	$	(392	)	$	18,447	$	(1,204	)	$	22,052	$	(1,596	)
December 31, 2014
Mortgage-backed securities	$	—	$	—		$	2,761	$	(667	)	$	2,761	$	(667	)
Obligations of states and political subdivisions	3,172		(422		)	29,402		(523		)	32,574		(945		)
Total temporarily impaired securities	$	3,172	$	(422	)	$	32,163	$	(1,190	)	$	35,335	$	(1,612	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

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 March 31,
	2015			2014
Recorded as part of gross realized losses:
Credit related OTTI	$	—		$	—
Intent to sell OTTI	—			—
Total recorded as part of gross realized losses	—			—
Recorded directly to AOCI for non-credit related impairment:
Residential mortgage backed securities	—			—
Accretion of non-credit related impairment	(24		)	(24		)
Total changes to AOCI for non-credit related impairment	(24		)	(24		)
Total OTTI losses (accretion) recorded on debt securities, net	$	(24	)	$	(24	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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