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SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Estimated Fair Value of Investment 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 as of December 31, 2020, and December 31, 2019, are summarized in the table below, in thousands:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
December 31, 2020    
U.S. treasuries$1,995 $31 $— $2,026 
U.S. agencies167,048 657 (926)166,779 
Obligations of states and political subdivisions1,562,631 75,555 (2,959)1,635,227 
Mortgage-backed securities - agency1,351,964 16,029 (12,723)1,355,270 
Mortgage-backed securities - non-agency1,428,068 22,688 (1,640)1,449,116 
Commercial mortgage-backed securities - agency171,451 3,440 (738)174,153 
Commercial mortgage-backed securities - non-agency253,421 37 (691)252,767 
Asset-backed securities1,064,255 9,421 (4,410)1,069,266 
Corporate bonds3,763 8 (29)3,742 
Total debt securities6,004,596 127,866 (24,116)6,108,346 
Equity securities with a readily determinable fair value19,629 — — 19,629 
Total$6,024,225 $127,866 $(24,116)$6,127,975 
December 31, 2019
U.S. treasuries$8,466 $37 $— $8,503 
U.S. agencies185,566 671 (1,561)184,676 
Obligations of states and political subdivisions704,073 12,516 (9,399)707,190 
Mortgage-backed securities - agency763,733 7,598 (4,605)766,726 
Mortgage-backed securities - non-agency427,315 4,312 (1,130)430,497 
Commercial mortgage-backed securities - agency68,019 989 (143)68,865 
Commercial mortgage-backed securities - non-agency435,195 3,113 (1,983)436,325 
Asset-backed securities700,631 529 (9,581)691,579 
Corporate bonds— — — — 
Total debt securities3,292,998 29,765 (28,402)3,294,361 
Equity securities18,435 — — 18,435 
Total$3,311,433 $29,765 $(28,402)$3,312,796 
The amortized cost and estimated fair value of investment securities carried at fair value at December 31, 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.
December 31, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$3,579 $3,624 
Due in 1 to 5 years26,507 27,252 
Due in 5 to 10 years168,981 173,927 
Due after 10 years1,536,370 1,602,971 
    Total debt securities1,735,437 1,807,774 
Mortgage and asset-backed securities4,269,159 4,300,572 
Equity securities with a readily determinable fair value 19,629 19,629 
Total investment securities$6,024,225 $6,127,975 
Schedule of Securities Held to Maturity
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 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
December 31, 2020    
Obligations of states and political subdivisions$88,890 $11,151 $— $100,041 $(51)
Total$88,890 $11,151 $— $100,041 $(51)
December 31, 2019
Obligations of states and political subdivisions$91,324 $9,160 $— $100,484 $— 
Total$91,324 $9,160 $— $100,484 $— 
The amortized cost and estimated fair value of debt securities held to maturity at December 31, 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.
December 31, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$1,933 $1,963 
Due in 1 to 5 years24,129 25,871 
Due in 5 to 10 years54,329 60,040 
Due after 10 years8,499 12,167 
Total investment securities$88,890 $100,041 
Schedule of Realized Gross Gains and Losses on Sales of Securities Available for Sale
Gross gains and losses realized related to sales of securities carried at fair value for the years ended December 31, 2020, 2019 and 2018 are summarized as follows, in thousands:
 202020192018
Available for Sale Securities sold:  
Proceeds from sales$1,097,378 $1,628,467 $727,895 
Gross security gains13,208 11,774 3,661 
Gross security losses5,616 4,115 2,576 
Schedule of Available for Sale Securities
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 December 31, 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 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2020, and December 31, 2019, 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
December 31, 2020
U.S. agencies$2,981 $(8)5 $99,922 $(918)72 $102,903 $(926)77 
Obligations of states and political subdivisions346,598 (2,959)49 — — — 346,598 (2,959)49 
Mortgage-backed securities - agency653,793 (12,342)35 31,012 (381)3 684,805 (12,723)38 
Mortgage-backed securities - non-agency378,843 (1,639)17 1,622 (1)1 380,465 (1,640)18 
Commercial mortgage-backed securities - agency46,541 (738)6 — — — 46,541 (738)6 
Commercial mortgage-backed securities - non-agency100,042 (15)2 35,428 (676)3 135,470 (691)5 
Asset-backed securities141,824 (643)9 340,452 (3,767)24 482,276 (4,410)33 
Corporate bonds1,908 (29)4 — — — 1,908 (29)4 
Total temporarily impaired securities$1,672,530 $(18,373)127 $508,436 $(5,743)103 $2,180,966 $(24,116)230 
December 31, 2019
U.S. agencies$94,774 $(957)57 $49,555 $(604)24 $144,329 $(1,561)81 
Obligations of states and political subdivisions387,534 (9,399)50 — — — 387,534 (9,399)50 
Mortgage-backed securities - agency182,614 (1,763)36 92,928 (2,842)17 275,542 (4,605)53 
Mortgage-backed securities - non-agency225,807 (1,130)6 251 — 1 226,058 (1,130)7 
Commercial mortgage-backed securities - agency12,509 (128)4 1,842 (15)1 14,351 (143)5 
Commercial mortgage-backed securities - non-agency214,774 (1,544)19 55,896 (439)4 270,670 (1,983)23 
Asset-backed securities501,254 (8,667)28 40,760 (914)11 542,014 (9,581)39 
Corporate bonds— — — — — — — — 
Total temporarily impaired securities$1,619,266 $(23,588)200 $241,232 $(4,814)58 $1,860,498 $(28,402)258 
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss The following table presents, in thousands, the activity in the allowance for credit losses for securities held to maturity by major security type for the quarter and year ended December 31, 2020:
Obligations of states and political subdivisions
Balance at December 31, 2019$— 
Impact of ASU 2016-13 adoption on January 1, 2020158 
Adjusted balance at January 1, 2020158 
Provision for credit losses(107)
Balance at December 31, 2020
$51 
Schedule of Financing Receivable Credit Quality Indicators
The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities:
RatingObligations of states and political subdivisions
AAA$— 
AA, AA+, AA-64,385 
A+, A, A-18,353 
BBB4,208 
Not Rated1,944 
Total $88,890 
The following table shows the risk category of loans by loan category and year of origination as of December 31, 2020, in thousands:
Amortized Cost Basis of Term Loans by Year of Origination
202020192018201720162015 and PriorRevolvingTotal
Commercial and industrial
Pass$557,853 $340,809 $168,873 $215,696 $101,010 $337,834 $541,627 $2,263,702 
Watch41,574 24,676 19,672 14,262 8,072 2,474 49,432 160,162 
Substandard23,024 16,274 8,897 15,717 9,098 19,537 18,388 110,935 
Commercial and industrial total$622,451 $381,759 $197,442 $245,675 $118,180 $359,845 $609,447 $2,534,799 
PPP
Pass$880,709 $— $— $— $— $— $— $880,709 
Watch 22,533 — — — — — — 22,533 
Substandard54,543 — — — — — — 54,543 
PPP total$957,785 $— $— $— $— $— $— $957,785 
Owner occupied commercial real estate
Pass$400,662 $369,401 $300,242 $167,470 $107,234 $213,780 $33,759 $1,592,548 
Watch15,345 13,764 22,488 20,811 8,717 15,282 4,311 100,718 
Substandard15,914 9,522 12,164 14,147 8,580 21,708 1,105 83,140 
Owner occupied commercial real estate total$431,921 $392,687 $334,894 $202,428 $124,531 $250,770 $39,175 $1,776,406 
Non-owner occupied commercial real estate
Pass$334,722 $411,301 $305,456 $194,101 $108,070 $233,153 $24,466 $1,611,269 
Watch22,826 55,225 24,718 18,724 20,954 45,672 5,114 193,233 
Substandard30,899 15,035 23,290 17,046 9,147 21,060 502 116,979 
Non-owner occupied commercial real estate total$388,447 $481,561 $353,464 $229,871 $138,171 $299,885 $30,082 $1,921,481 
Real estate construction
Pass$311,625 $309,678 $157,171 $12,625 $6,954 $5,110 $21,431 $824,594 
Watch 2,105 26,659 2,403 332 55 388 1,295 33,237
Substandard196 2,760 2,036 — 39 358 — 5,389
Real estate construction total$313,926 $339,097 $161,610 $12,957 $7,048 $5,856 $22,726 $863,220 
Agricultural and agricultural real estate
Pass $171,578 $90,944 $62,349 $39,252 $17,626 $37,696 $148,456 $567,901 
Watch 20,500 16,202 8,854 2,448 3,515 3,157 12,282 66,958 
Substandard17,403 7,044 23,519 6,758 3,917 9,952 11,074 79,667 
Agricultural and agricultural real estate total$209,481 $114,190 $94,722 $48,458 $25,058 $50,805 $171,812 $714,526 
Residential real estate
Pass$153,017 $99,440 $118,854 $83,534 $63,477 $244,852 $33,467 $796,641 
Watch 3,986 4,507 2,188 1,896 3,117 8,525 — 24,219
Substandard980 442 2,507 1,528 884 12,141 1,100 19,582
Residential real estate total$157,983 $104,389 $123,549 $86,958 $67,478 $265,518 $34,567 $840,442 
Consumer
Pass$37,037 $27,646 $18,811 $15,034 $4,009 $19,483 $280,996 $403,016 
Watch168 352 647 340 82 646 1,622 3,857
Substandard481 959 1,884 500 897 1,976 822 7,519
Consumer total$37,686 $28,957 $21,342 $15,874 $4,988 $22,105 $283,440 $414,392 
Total pass$2,847,203 $1,649,219 $1,131,756 $727,712 $408,380 $1,091,908 $1,084,202 $8,940,380 
Total watch129,037 141,385 80,970 58,813 44,512 76,144 74,056 604,917
Total substandard143,440 52,036 74,297 55,696 32,562 86,732 32,991 477,754
Total loans $3,119,680 $1,842,640 $1,287,023 $842,221 $485,454 $1,254,784 $1,191,249 $10,023,051 
The following table presents loans by credit quality indicator at December 31, 2019, in thousands:
PassNonpassTotal
December 31, 2019
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