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SECURITIES (Tables)
 6 Months Ended
Jun. 30, 2020
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 debt securities available for sale and equity securities with a readily determinable fair value that are carried at fair value as of June 30, 2020, and December 31, 2019, are summarized in the table below, in thousands:

Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2020    
U.S. government corporations and agencies$5,745  $97  $—  $5,842  
Mortgage and asset-backed securities3,130,605  45,792  (41,958) 3,134,439  
Obligations of states and political subdivisions919,665  49,828  (2,814) 966,679  
Total debt securities4,056,015  95,717  (44,772) 4,106,960  
Equity securities with a readily determinable fair value19,391  —  —  19,391  
Total$4,075,406  $95,717  $(44,772) $4,126,351  
December 31, 2019
U.S. government corporations and agencies$9,844  $49  $—  $9,893  
Mortgage and asset-backed securities2,579,081  17,200  (19,003) 2,577,278  
Obligations of states and political subdivisions704,073  12,516  (9,399) 707,190  
Total debt securities3,292,998  29,765  (28,402) 3,294,361  
Equity securities with a readily determinable fair value18,435  —  —  18,435  
Total$3,311,433  $29,765  $(28,402) $3,312,796  
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 June 30, 2020, and December 31, 2019, are summarized in the table below, in thousands:

Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Credit Losses
June 30, 2020    
Obligations of states and political subdivisions$90,641  $10,916  $—  $101,557  $(62) 
Total$90,641  $10,916  $—  $101,557  $(62) 
December 31, 2019
Obligations of states and political subdivisions$91,324  $9,160  $—  $100,484  $—  
Total$91,324  $9,160  $—  $100,484  $—  
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of investment securities carried at fair value at June 30, 2020, 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.

June 30, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$9,026  $9,079  
Due in 1 to 5 years22,916  23,333  
Due in 5 to 10 years77,716  81,897  
Due after 10 years815,752  858,212  
Total debt securities925,410  972,521  
Mortgage and asset-backed securities3,130,605  3,134,439  
Equity securities with a readily determinable fair value 19,391  19,391  
Total investment securities$4,075,406  $4,126,351  

The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2020, 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.

June 30, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$1,814  $1,840  
Due in 1 to 5 years17,582  18,389  
Due in 5 to 10 years59,986  65,872  
Due after 10 years11,259  15,456  
Total debt securities90,641  101,557  
Allowance for credit losses(62) —  
Total investment securities$90,579  $101,557  
Schedule of Realized Gross Gains (Losses)
Gross gains and losses realized related to the sales of securities carried at fair value for the three- and six-month periods ended June 30, 2020 and 2019, are summarized as follows, in thousands:

Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Proceeds from sales$182,749  $760,743  $511,639  $1,194,897  
Gross security gains3,958  5,522  6,862  7,930  
Gross security losses1,952  1,942  3,198  2,775  
Schedule of Debt Securities Available-for-sale The following table summarizes, 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, 2020, and December 31, 2019. 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 months or more. The reference point for determining how long an investment was in an unrealized loss position was June 30, 2019, and December 31, 2018, respectively.

Debt securities available for saleLess than 12 months12 months or longerTotal
 Fair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		Count
June 30, 2020
Mortgage and asset-backed securities$1,070,001  $(23,591) 81  $392,756  $(18,367) 19  $1,462,757  $(41,958) 100  
Obligations of states and political subdivisions104,108  (2,814) 97  —  —  —  104,108  (2,814) 97  
Total temporarily impaired securities$1,174,109  $(26,405) 178  $392,756  $(18,367) 19  $1,566,865  $(44,772) 197  
December 31, 2019
Mortgage and asset-backed securities$1,231,732  $(14,189) 150  $241,232  $(4,814) 58  $1,472,964  $(19,003) 208  
Obligations of states and political subdivisions387,534  (9,399) 50  —  —  —  387,534  (9,399) 50  
Total temporarily impaired securities$1,619,266  $(23,588) 200  $241,232  $(4,814) 58  $1,860,498  $(28,402) 258  
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss The following table presents, in
thousands, the activity in the allowance for credit losses for securities held to maturity by major security type for the three- and six months ended June 30, 2020:
Obligations of states and political subdivisions
Balance at March 31, 2020$197  
Provision for credit losses(135) 
Balance at June 30, 2020$62  
Obligations of states and political subdivisions
Balance at December 31, 2019$—  
Impact of ASU 2016-13 adoption158  
Provision for credit losses(96) 
Balance at June 30, 2020
$62  
Schedule of Financing Receivable Credit Quality Indicators
The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of June 30, 2020, which are updated quarterly and used to monitor the credit quality of the securities:

RatingObligations of states and political subdivisions
AAA$3,086  
AA, AA+, AA-16,947  
A+, A, A-13,750  
BBB6,102  
Not Rated50,756  
Total $90,641  
The following table shows the risk category of loans by loan category and year of origination as of June 30, 2020, in thousands:
Amortized Cost Basis of Term Loans by Year of Origination
202020192018201720162015 and PriorRevolvingTotal
Commercial and industrial
Pass$270,156  $395,142  $210,947  $255,555  $130,483  $356,052  $523,532  $2,141,867  
Watch 7,506  39,383  13,278  18,592  8,429  184  45,250  132,622  
Substandard 3,672  8,052  21,695  14,822  11,150  12,701  17,819  89,911  
Commercial and industrial total$281,334  $442,577  $245,920  $288,969  $150,062  $368,937  $586,601  $2,364,400  
PPP
Pass$1,071,796  $—  $—  $—  $—  $—  $—  $1,071,796  
Watch30,693  —  —  —  —  —  —  30,693  
Substandard21,941  —  —  —  —  —  —  21,941  
PPP total $1,124,430  $—  $—  $—  $—  $—  $—  $1,124,430  
Owner occupied commercial real estate
Pass$139,436  $307,221  $277,311  $175,702  $122,807  $252,559  $31,445  $1,306,481  
Watch5,865  6,529  5,467  29,782  4,585  8,422  100  60,750  
Substandard6,768  7,784  23,012  9,889  6,163  12,211  213  66,040  
Owner occupied commercial real estate total$152,069  $321,534  $305,790  $215,373  $133,555  $273,192  $31,758  $1,433,271  
Non-owner occupied commercial real estate
Pass$174,914  $403,907  $249,906  $176,422  $113,130  $285,323  $29,731  $1,433,333  
Watch254  2,520  26,360  17,152  8,868  16,265  475  71,894  
Substandard19,460  2,933  1,615  5,891  1,377  7,120  —  38,396  
Non-owner occupied commercial real estate total$194,628  $409,360  $277,881  $199,465  $123,375  $308,708  $30,206  $1,543,623  
Real estate construction
Pass$136,140  $423,116  $314,934  $82,944  $31,864  $32,028  $15,820  $1,036,846  
Watch 329  17,548  20,447  10,418  16,931  1,189  824  67,686  
Substandard5,762  2,021  863  1,462  522  681  —  11,311  
Real estate construction total$142,231  $442,685  $336,244  $94,824  $49,317  $33,898  $16,644  $1,115,843  
Agricultural and agricultural real estate
Pass$60,973  $91,129  $52,319  $34,156  $17,330  $40,204  $120,864  $416,975  
Watch3,117  7,501  5,293  1,153  2,027  3,914  9,307  32,312  
Substandard8,207  7,489  18,599  6,446  3,966  14,591  12,188  71,486  
Agricultural and agricultural real estate total$72,297  $106,119  $76,211  $41,755  $23,323  $58,709  $142,359  $520,773  
Residential real estate
Pass$47,582  $82,571  $119,637  $89,920  $56,886  $275,367  $27,211  $699,174  
Watch82  3,050  880  1,619  349  7,291  346  13,617  
Substandard147  312  1,047  408  1,217  18,739  1,101  22,971  
Residential real estate total $47,811  $85,933  $121,564  $91,947  $58,452  $301,397  $28,658  $735,762  
Amortized Cost Basis of Term Loans by Year of Origination
202020192018201720162015 and PriorRevolvingTotal
Consumer
Pass$18,844  $32,474  $21,239  $15,111  $4,718  $22,982  $280,592  $395,960  
Watch—  335  385  193  247  744  1,874  3,778  
Substandard377  767  2,583  919  907  2,608  829  8,990  
Consumer total$19,221  $33,576  $24,207  $16,223  $5,872  $26,334  $283,295  $408,728  
Total Pass$1,919,841  $1,735,560  $1,246,293  $829,810  $477,218  $1,264,515  $1,029,195  $8,502,432  
Total Watch47,846  76,866  72,110  78,909  41,436  38,009  58,176  413,352  
Total Substandard 66,334  29,358  69,414  39,837  25,302  68,651  32,150  331,046  
Total Loans$2,034,021  $1,841,784  $1,387,817  $948,556  $543,956  $1,371,175  $1,119,521  $9,246,830  

The following table shows Heartland's loan portfolio by credit quality indicator as of December 31, 2019, in thousands:
PassNonpassTotal
Commercial and industrial$2,352,131  $178,678  $2,530,809  
Owner occupied commercial real estate1,369,290  103,414  1,472,704  
Non-owner occupied commercial real estate1,429,760  66,117  1,495,877  
Real estate construction984,736  42,345  1,027,081  
Agricultural and agricultural real estate454,272  111,565  565,837  
Residential real estate790,226  42,051  832,277  
Consumer430,733  12,599  443,332  
  Total loans receivable held to maturity$7,811,148  $556,769  $8,367,917