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Securities (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2016, and December 31, 2015, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
September 30, 2016
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
4,830

 
$
125

 
$
—

 
$
4,955

Mortgage-backed securities
1,281,459

 
14,401

 
(20,767
)
 
1,275,093

Obligations of states and political subdivisions
353,483

 
9,611

 
(987
)
 
362,107

Corporate debt securities
—

 
—

 
—

 
—

Total debt securities
1,639,772

 
24,137

 
(21,754
)
 
1,642,155

Equity securities
13,166

 
375

 
—

 
13,541

Total
$
1,652,938

 
$
24,512

 
$
(21,754
)
 
$
1,655,696

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 September 30, 2016, and December 31, 2015, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
September 30, 2016
 
 
 
 
 
 
 
Mortgage-backed securities
$
—

 
$
—

 
$
—

 
$
—

Obligations of states and political subdivisions
265,302

 
20,191

 
(545
)
 
284,948

Total
$
265,302

 
$
20,191

 
$
(545
)
 
$
284,948

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 September 30, 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
$
1,075

 
$
1,078

Due in 1 to 5 years
22,931

 
23,277

Due in 5 to 10 years
103,104

 
105,529

Due after 10 years
231,203

 
237,178

Total debt securities
358,313

 
367,062

Mortgage-backed securities
1,281,459

 
1,275,093

Equity securities
13,166

 
13,541

Total investment securities
$
1,652,938

 
$
1,655,696


The amortized cost and estimated fair value of debt securities held to maturity at September 30, 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
$
3,695

 
$
3,760

Due in 1 to 5 years
14,233

 
15,163

Due in 5 to 10 years
87,275

 
92,278

Due after 10 years
160,099

 
173,747

Total debt securities
265,302

 
284,948

Mortgage-backed securities
—

 
—

Total investment securities
$
265,302

 
$
284,948
Schedule of Realized Gross Gains (Losses)
Gross gains and losses realized related to the sales of securities available for sale for the three- and nine-month periods ended September 30, 2016 and 2015, are summarized as follows, in thousands:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Proceeds from sales
$
146,242

 
$
351,050

 
$
768,617

 
$
877,077

Gross security gains
1,763

 
2,416

 
11,416

 
10,857

Gross security losses
177

 
609

 
1,332

 
1,587
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 September 30, 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 September 30, 2015, and December 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
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Mortgage-backed securities
575,105

 
(14,317
)
 
180,406

 
(6,450
)
 
755,511

 
(20,767
)
Obligations of states and political subdivisions
70,894

 
(986
)
 
253

 
(1
)
 
71,147

 
(987
)
Total debt securities
645,999

 
(15,303
)
 
180,659

 
(6,451
)
 
826,658

 
(21,754
)
Equity securities
—

 
—

 
—

 
—

 
—

 
—

Total temporarily impaired securities
$
645,999

 
$
(15,303
)
 
$
180,659

 
$
(6,451
)
 
$
826,658

 
$
(21,754
)
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
)
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
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
2,639

 
(276
)
 
1,123

 
(269
)
 
3,762

 
(545
)
Total temporarily impaired securities
$
2,639

 
$
(276
)
 
$
1,123

 
$
(269
)
 
$
3,762

 
$
(545
)
December 31, 2015
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
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
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
—

 
(24
)
 
(7
)
 
(72
)
Total changes to AOCI for non-credit related impairment
—

 
(24
)
 
(127
)
 
(72
)
Total OTTI losses (accretion) recorded on debt securities, net
$
—

 
$
(24
)
 
$
(127
)
 
$
(72
)