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Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of Loans and Leases
Loans as of December 31, 2019, and December 31, 2018, were as follows, in thousands:
December 31, 2019December 31, 2018
Loans receivable held to maturity:  
Commercial$2,419,909  $2,020,231  
Commercial real estate4,370,549  3,711,481  
Agricultural and agricultural real estate533,064  565,408  
Residential real estate597,742  673,603  
Consumer452,233  440,158  
Gross loans receivable held to maturity8,373,497  7,410,881  
Unearned discount(680) (1,624) 
Deferred loan fees(4,900) (1,560) 
Total net loans receivable held to maturity8,367,917  7,407,697  
Allowance for loan losses(70,395) (61,963) 
Loans receivable, net$8,297,522  $7,345,734  
The following table shows the balance in the allowance for loan losses at December 31, 2019, and December 31, 2018, and the related loan balances, disaggregated on the basis of impairment methodology, in thousands. Loans evaluated under ASC 310-10-35 include loans on nonaccrual status and troubled debt restructurings, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics. All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no changes to the accounting for the allowance for loan losses policy during 2019 or 2018.
Allowance For Loan Losses
Gross Loans Receivable
Held to Maturity
Ending Balance
Under ASC
310-10-35
Ending Balance
Under ASC
450-20
Total
Ending Balance
Evaluated for Impairment
Under ASC
310-10-35
Ending Balance
Evaluated for Impairment
Under ASC
450-20
 Total
December 31, 2019
Commercial$6,245  $21,499  $27,744  $24,438  $2,395,471  $2,419,909  
Commercial real estate451  30,292  30,743  18,652  4,351,897  4,370,549  
Agricultural and agricultural real estate916  4,701  5,617  22,686  510,378  533,064  
Residential real estate110  1,328  1,438  16,740  581,002  597,742  
Consumer450  4,403  4,853  4,536  447,697  452,233  
Total$8,172  $62,223  $70,395  $87,052  $8,286,445  $8,373,497  
December 31, 2018
Commercial$5,733  $18,772  $24,505  $24,202  $1,996,029  $2,020,231  
Commercial real estate218  25,320  25,538  14,388  3,697,093  3,711,481  
Agricultural and agricultural real estate686  4,267  4,953  15,951  549,457  565,408  
Residential real estate168  1,617  1,785  20,251  653,352  673,603  
Consumer749  4,433  5,182  7,004  433,154  440,158  
Total$7,554  $54,409  $61,963  $81,796  $7,329,085  $7,410,881  
Schedule of Loans Not Covered Under Loss Share Agreements
The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans at December 31, 2019, and December 31, 2018, in thousands:
December 31, 2019December 31, 2018
Nonaccrual loans$72,754  $67,833  
Nonaccrual troubled debt restructured loans3,794  4,110  
Total nonaccrual loans$76,548  $71,943  
Accruing loans past due 90 days or more$4,105  $726  
Performing troubled debt restructured loans$3,794  $4,026  
Schedule of Troubled Debt Restructured Loans Modified
The following table provides information on troubled debt restructured loans that were modified during the years ended December 31, 2019, and December 31, 2018, in thousands:
For the Years Ended
December 31, 2019December 31, 2018
Number of LoansPre-Modification Recorded InvestmentPost-Modification Recorded InvestmentNumber of LoansPre-Modification Recorded InvestmentPost-Modification Recorded Investment
Commercial1  $40  $40  —  $—  $—  
Commercial real estate—  —  —  —  —  —  
Total commercial and commercial real estate1  40  40  —  —  —  
Agricultural and agricultural real estate—  —  —  —  —  —  
Residential real estate6  623  649  16  2,843  2,559  
Consumer—  —  —  —  —  —  
Total7  $663  $689  16  $2,843  $2,559  
Schedule of Troubled Debt Restructured Loans with Payment Default
The following table provides information on troubled debt restructured loans for which there was a payment default during the years ended December 31, 2019, and December 31, 2018, in thousands, that had been modified during the 12-month period prior to the default:
With Payment Defaults During the Following Periods
For the Years Ended  
December 31, 2019December 31, 2018
Number of Loans  Recorded Investment  Number of Loans  Recorded Investment  
Commercial—  $—  —  $—  
Commercial real estate—  —  —  —  
  Total commercial and commercial real estate—  —  —  —  
Agricultural and agricultural real estate—  —  —  —  
Residential real estate2  210  7  1,036  
Consumer—  —  —  —  
  Total2  $210  7  $1,036  
Schedule of Loans and Leases Not Covered by Loss Share Agreements by Credit Quality Indicator
The following table presents loans by credit quality indicator at December 31, 2019, and December 31, 2018, in thousands:
PassNonpassTotal
December 31, 2019
Commercial$2,251,115  $168,794  $2,419,909  
Commercial real estate4,141,436  229,113  4,370,549  
  Total commercial and commercial real estate6,392,551  397,907  6,790,458  
Agricultural and agricultural real estate415,455  117,609  533,064  
Residential real estate569,401  28,341  597,742  
Consumer439,321  12,912  452,233  
  Total gross loans receivable held to maturity$7,816,728  $556,769  $8,373,497  
December 31, 2018
Commercial$1,880,579  $139,652  $2,020,231  
Commercial real estate3,524,344  187,137  3,711,481  
  Total commercial and commercial real estate5,404,923  326,789  5,731,712  
Agricultural and agricultural real estate471,642  93,766  565,408  
Residential real estate645,478  28,125  673,603  
Consumer425,451  14,707  440,158  
  Total gross loans receivable held to maturity$6,947,494  $463,387  $7,410,881  
Schedule of Accruing and Nonaccrual Loans and Leases Not Covered by Loss Share Agreements
The following table sets forth information regarding Heartland's accruing and nonaccrual loans at December 31, 2019, and December 31, 2018, in thousands:
Accruing Loans
30-59
Days
Past Due
60-89
Days
Past Due
90 Days
or More
Past Due
Total
Past Due
CurrentNonaccrualTotal Loans
December 31, 2019
Commercial$5,075  $726  $3,899  $9,700  $2,384,637  $25,572  $2,419,909  
Commercial real estate9,457  1,012  84  10,553  4,348,672  11,324  4,370,549  
Total commercial and commercial real estate14,532  1,738  3,983  20,253  6,733,309  36,896  6,790,458  
Agricultural and agricultural real estate3,734  209  26  3,969  504,419  24,676  533,064  
Residential real estate4,382  72  96  4,550  582,257  10,935  597,742  
Consumer2,674  482  —  3,156  445,036  4,041  452,233  
Total gross loans receivable held to maturity$25,322  $2,501  $4,105  $31,928  $8,265,021  $76,548  $8,373,497  
December 31, 2018
Commercial$2,574  $205  $—  $2,779  $1,991,525  $25,927  $2,020,231  
Commercial real estate4,819  —  726  5,545  3,694,259  11,677  3,711,481  
Total commercial and commercial real estate7,393  205  726  8,324  5,685,784  37,604  5,731,712  
Agricultural and agricultural real estate99  —  —  99  549,376  15,933  565,408  
Residential real estate5,147  49  —  5,196  655,329  13,078  673,603  
Consumer2,724  307  —  3,031  431,799  5,328  440,158  
Total gross loans receivable held to maturity$15,363  $561  $726  $16,650  $7,322,288  $71,943  $7,410,881  
Summary of Impaired Loans The following tables present the unpaid principal balance that was contractually due at December 31, 2019, and December 31, 2018, the outstanding loan balance recorded on the consolidated balance sheets at December 31, 2019, and December 31, 2018, any related allowance recorded for those loans as of December 31, 2019, and December 31, 2018, the average outstanding loan balance recorded on the consolidated balance sheets during the years ended December 31, 2019, and December 31, 2018, and the interest income recognized on the impaired loans during the year ended December 31, 2019, and year ended December 31, 2018, in thousands:
Unpaid
Principal
Balance
Loan
Balance
Related
Allowance
Recorded
Year-to-Date
Avg. Loan
Balance
Year-to-Date
Interest Income
Recognized
December 31, 2019
Impaired loans with a related allowance:
Commercial$11,696  $11,679  $6,245  $11,757  $6  
Commercial real estate1,319  1,319  451  1,435  22  
Total commercial and commercial real estate13,015  12,998  6,696  13,192  28  
Agricultural and agricultural real estate2,750  2,237  916  2,739  —  
Residential real estate927  927  110  1,116  —  
Consumer1,029  1,027  450  1,170  11  
Total loans held to maturity$17,721  $17,189  $8,172  $18,217  $39  
Impaired loans without a related allowance:
Commercial$15,180  $12,759  $—  $12,831  $740  
Commercial real estate17,413  17,333  —  16,798  471  
Total commercial and commercial real estate32,593  30,092  —  29,629  1,211  
Agricultural and agricultural real estate23,245  20,449  —  16,837  60  
Residential real estate15,824  15,813  —  17,073  280  
Consumer3,509  3,509  —  4,182  45  
Total loans held to maturity$75,171  $69,863  $—  $67,721  $1,596  
Total impaired loans held to maturity:
Commercial$26,876  $24,438  $6,245  $24,588  $746  
Commercial real estate18,732  18,652  451  18,233  493  
Total commercial and commercial real estate45,608  43,090  6,696  42,821  1,239  
Agricultural and agricultural real estate25,995  22,686  916  19,576  60  
Residential real estate16,751  16,740  110  18,189  280  
Consumer4,538  4,536  450  5,352  56  
Total impaired loans held to maturity$92,892  $87,052  $8,172  $85,938  $1,635  
Unpaid
Principal
Balance
Loan
Balance
Related
Allowance
Recorded
Year-to-Date
Avg. Loan
Balance
Year-to-Date
Interest Income
Recognized
December 31, 2018
Impaired loans with a related allowance:
Commercial$12,376  $12,366  $5,733  $4,741  $33  
Commercial real estate891  891  218  4,421  25  
Total commercial and commercial real estate13,267  13,257  5,951  9,162  58  
Agricultural and agricultural real estate1,718  1,718  686  2,165  2  
Residential real estate647  647  168  1,138  12  
Consumer1,373  1,373  749  2,934  29  
Total loans held to maturity$17,005  $16,995  $7,554  $15,399  $101  
Impaired loans without a related allowance:
Commercial$13,616  $11,836  $—  $10,052  $299  
Commercial real estate13,578  13,497  —  13,000  249  
Total commercial and commercial real estate27,194  25,333  —  23,052  548  
Agricultural and agricultural real estate16,836  14,233  —  14,781  5  
Residential real estate19,604  19,604  —  23,950  308  
Consumer5,631  5,631  —  5,117  97  
Total loans held to maturity$69,265  $64,801  $—  $66,900  $958  
Total impaired loans held to maturity:
Commercial$25,992  $24,202  $5,733  $14,793  $332  
Commercial real estate14,469  14,388  218  17,421  274  
Total commercial and commercial real estate40,461  38,590  5,951  32,214  606  
Agricultural and agricultural real estate18,554  15,951  686  16,946  7  
Residential real estate20,251  20,251  168  25,088  320  
Consumer7,004  7,004  749  8,051  126  
Total impaired loans held to maturity$86,270  $81,796  $7,554  $82,299  $1,059  
The carrying amount of the acquired loans at December 31, 2019, and December 31, 2018, consisted of purchased impaired and nonimpaired purchased loans as summarized in the following table, in thousands:
December 31, 2019December 31, 2018
 
Impaired
Purchased
Loans
Non Impaired
Purchased
Loans
Total
Purchased
Loans
Impaired
Purchased
Loans		Non Impaired
Purchased
Loans		Total
Purchased
Loans
Commercial$7,181  $317,689  $324,870  $3,801  $243,693  $247,494  
Commercial real estate 4,581  1,145,027  1,149,608  158  1,098,171  1,098,329  
Agricultural and agricultural real estate—  9,434  9,434  —  27,115  27,115  
Residential real estate—  181,453  181,453  231  184,389  184,620  
Consumer loans569  82,700  83,269  —  75,773  75,773  
Total Covered Loans$12,331  $1,736,303  $1,748,634  $4,190  $1,629,141  $1,633,331  
Changes in Accretable Yield on Acquired Loans
Changes in accretable yield on acquired loans with evidence of credit deterioration at the date of acquisition for the years ended December 31, 2019, and December 31, 2018, are presented in the table below, in thousands:
For the Years Ended  
December 31, 2019December 31, 2018
Balance at beginning of year$227  $57  
Original yield discount, net, at date of acquisitions64  508  
Accretion(2,479) (1,743) 
Reclassification from nonaccretable difference(1)
2,581  1,405  
Balance at end of year$393  $227  
(1) Represents increases in estimated cash flows expected to be received, primarily due to lower estimated credit losses.
Summary of Changes in Related Party Loans Changes in such loans during the years ended December 31, 2019 and 2018, were as follows, in thousands:
 20192018
Balance at beginning of year$124,983  $115,673  
Advances91,287  44,771  
Repayments(31,702) (35,461) 
Balance at end of year$184,568  $124,983