Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Available for Sale Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2016, and December 31, 2015, are summarized in the table below, in thousands:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2016
U.S. government corporations and agencies	$	6,479	$	140	$	—		$	6,619
Mortgage-backed securities	1,386,707		14,448		(12,468		)	1,388,687
Obligations of states and political subdivisions	273,147		8,008		(152		)	281,003
Corporate debt securities	816		15		(1		)	830
Total debt securities	1,667,149		22,611		(12,621		)	1,677,139
Equity securities	13,150		227		—			13,377
Total	$	1,680,299	$	22,838	$	(12,621	)	$	1,690,516
December 31, 2015
U.S. government corporations and agencies	$	25,847	$	22	$	(103	)	$	25,766
Mortgage-backed securities	1,254,452		9,134		(20,884		)	1,242,702
Obligations of states and political subdivisions	290,522		6,547		(1,087		)	295,982
Corporate debt securities	740		106		—			846
Total debt securities	1,571,561		15,809		(22,074		)	1,565,296
Equity securities	13,142		40		(44		)	13,138
Total	$	1,584,703	$	15,849	$	(22,118	)	$	1,578,434

Schedule of 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, 2016, and December 31, 2015, are summarized in the table below, in thousands:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2016
Mortgage-backed securities	$	—	$	—	$	—		$	—
Obligations of states and political subdivisions	271,300		18,492		(346		)	289,446
Total	$	271,300	$	18,492	$	(346	)	$	289,446
December 31, 2015
Mortgage-backed securities	$	4,369	$	306	$	—		$	4,675
Obligations of states and political subdivisions	274,748		15,595		(505		)	289,838
Total	$	279,117	$	15,901	$	(505	)	$	294,513

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities available for sale at March 31, 2016, 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	$	1,265	$	1,273
Due in 1 to 5 years	12,836		13,115
Due in 5 to 10 years	67,214		69,250
Due after 10 years	199,127		204,814
Total debt securities	280,442		288,452
Mortgage-backed securities	1,386,707		1,388,687
Equity securities	13,150		13,377
Total investment securities	$	1,680,299	$	1,690,516

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2016, 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	$	4,266	$	4,336
Due in 1 to 5 years	13,714		14,499
Due in 5 to 10 years	68,786		73,224
Due after 10 years	184,534		197,387
Total debt securities	271,300		289,446
Mortgage-backed securities	—		—
Total investment securities	$	271,300	$	289,446

Schedule of Realized Gross Gains (Losses)

Gross gains and losses realized related to the sales of securities available for sale for the three-month period ended March 31, 2016 and 2015, are summarized as follows, in thousands:

	Three Months Ended March 31,
	2016		2015
Proceeds from sales	$	303,448	$	289,466
Gross security gains	4,558		4,622
Gross security losses	682		269

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, 2016, and December 31, 2015. 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, 2015, andDecember 31, 2014, 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, 2016
U.S. government corporations and agencies	$	—	$	—		$	—	$	—		$	—	$	—
Mortgage-backed securities	517,907		(8,323		)	130,640		(4,145		)	648,547		(12,468		)
Obligations of states and political subdivisions	10,003		(82		)	6,619		(70		)	16,622		(152		)
Corporate debt securities	500		(1		)	—		—			500		(1		)
Total debt securities	528,410		(8,406		)	137,259		(4,215		)	665,669		(12,621		)
Equity securities	—		—			—		—			—		—
Total temporarily impaired securities	$	528,410	$	(8,406	)	$	137,259	$	(4,215	)	$	665,669	$	(12,621	)
December 31, 2015
U.S. government corporations and agencies	$	22,359	$	(103	)	$	—	$	—		$	22,359	$	(103	)
Mortgage-backed securities	724,330		(15,523		)	139,562		(5,361		)	863,892		(20,884		)
Obligations of states and political subdivisions	68,482		(896		)	7,460		(191		)	75,942		(1,087		)
Corporate debt securities	—		—			—		—			—		—
Total debt securities	815,171		(16,522		)	147,022		(5,552		)	962,193		(22,074		)
Equity securities	6,566		(44		)	—		—			6,566		(44		)
Total temporarily impaired securities	$	821,737	$	(16,566	)	$	147,022	$	(5,552	)	$	968,759	$	(22,118	)

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, 2016
Mortgage-backed securities	$	—	$	—		$	—	$	—		$	—	$	—
Obligations of states and political subdivisions	1,363		(18		)	5,717		(328		)	7,080		(346		)
Total temporarily impaired securities	$	1,363	$	(18	)	$	5,717	$	(328	)	$	7,080	$	(346	)
December 31, 2015
Mortgage-backed securities	$	—	$	—		$	—	$	—		$	—	$	—
Obligations of states and political subdivisions	3,646		(12		)	18,033		(493		)	21,679		(505		)
Total temporarily impaired securities	$	3,646	$	(12	)	$	18,033	$	(493	)	$	21,679	$	(505	)

OTTI Write-downs Included in Earnings and AOCI

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,
	2016			2015
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	—			—
Reduction of non-credit related impairment related to security sales	(120		)	—
Accretion of non-credit related impairment	(7		)	(24		)
Total changes to AOCI for non-credit related impairment	(127		)	(24		)
Total OTTI losses (accretion) recorded on debt securities, net	$	(127	)	$	(24	)