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SECURITIES (Tables)
6 Months Ended
Jun. 30, 2021
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, 2021, and December 31, 2020, are summarized in the table below, in thousands:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
June 30, 2021    
U.S. treasuries$996 $20 $— $1,016 
U.S. agencies35,591 272 (492)35,371 
Obligations of states and political subdivisions1,817,708 66,037 (11,959)1,871,786 
Mortgage-backed securities - agency1,741,389 19,890 (20,604)1,740,675 
Mortgage-backed securities - non-agency1,349,005 16,062 (1,775)1,363,292 
Commercial mortgage-backed securities - agency124,441 2,439 (1,800)125,080 
Commercial mortgage-backed securities - non-agency534,682 823 (200)535,305 
Asset-backed securities835,476 12,640 (1,129)846,987 
Corporate bonds3,744 71 — 3,815 
Total debt securities6,443,032 118,254 (37,959)6,523,327 
Equity securities with a readily determinable fair value20,651 — — 20,651 
Total$6,463,683 $118,254 $(37,959)$6,543,978 
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 (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 
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, 2021, and December 31, 2020, 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, 2021    
Obligations of states and political subdivisions$85,490 $9,931 $— $95,421 $(51)
Total$85,490 $9,931 $— $95,421 $(51)
December 31, 2020
Obligations of states and political subdivisions$88,890 $11,151 $— $100,041 $(51)
Total$88,890 $11,151 $— $100,041 $(51)
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of investment securities carried at fair value at June 30, 2021, 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, 2021
Amortized CostEstimated Fair Value
Due in 1 year or less$13,286 $13,351 
Due in 1 to 5 years18,199 19,153 
Due in 5 to 10 years198,036 202,564 
Due after 10 years1,628,518 1,676,920 
Total debt securities1,858,039 1,911,988 
Mortgage and asset-backed securities4,584,993 4,611,339 
Equity securities with a readily determinable fair value 20,651 20,651 
Total investment securities$6,463,683 $6,543,978 

The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2021, 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, 2021
Amortized CostEstimated Fair Value
Due in 1 year or less$2,196 $2,209 
Due in 1 to 5 years42,172 44,028 
Due in 5 to 10 years32,451 37,240 
Due after 10 years8,671 11,944 
Total debt securities85,490 95,421 
Allowance for credit losses(51)— 
Total investment securities$85,439 $95,421 
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 months ended June 30, 2021 and 2020, are summarized as follows, in thousands:
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Proceeds from sales$423,415 $182,749 $630,481 $511,639 
Gross security gains3,844 3,958 4,289 6,862 
Gross security losses1,002 1,952 1,477 3,198 
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 the securities portfolio as of June 30, 2021, and December 31, 2020. 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, 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
June 30, 2021
U.S. agencies18,983 (492)— — — 18,983 (492)
Obligations of states and political subdivisions591,597 (11,887)107 6,719 (72)598,316 (11,959)109 
Mortgage-backed securities - agency1,025,619 (19,499)58 37,181 (1,105)1,062,800 (20,604)62 
Mortgage-backed securities - non-agency541,131 (1,345)12 33,988 (430)575,119 (1,775)17 
Commercial mortgage-backed securities - agency69,690 (1,800)11 — — — 69,690 (1,800)11 
Commercial mortgage-backed securities - non-agency— — — 15,960 (200)15,960 (200)
Asset-backed securities77,475 (319)35,779 (810)11 113,254 (1,129)18 
Corporate bonds— — — — — — — — — 
Total temporarily impaired securities$2,324,495 $(35,342)196 $129,627 $(2,617)24 $2,454,122 $(37,959)220 
December 31, 2020
U.S. agencies2,981 (8)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)684,805 (12,723)38 
Mortgage-backed securities - non-agency378,843 (1,639)17 1,622 (1)380,465 (1,640)18 
Commercial mortgage-backed securities - agency46,541 (738)— — — 46,541 (738)
Commercial mortgage-backed securities - non-agency100,042 (15)35,428 (676)135,470 (691)
Asset-backed securities141,824 (643)340,452 (3,767)24 482,276 (4,410)33 
Corporate bonds1,908 (29)— — — 1,908 (29)
Total temporarily impaired securities$1,672,530 $(18,373)127 $508,436 $(5,743)103 $2,180,966 $(24,116)230 
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss The following tables present, in thousands, the activity in the allowance for credit losses for securities held to maturity by obligations of states and political subdivisions securities for the three and six months ended June 30, 2021 and 2020:
Three Months Ended
June 30,
20212020
Beginning balance$48 $197 
Provision (benefit) for credit losses(135)
Balance at period end$51 $62 
Six Months Ended
June 30,
20212020
Beginning balance$51 $— 
Impact of ASU 2016-13 adoption— 158 
Adjusted balance51 158 
Provision (benefit) for credit losses— (96)
Balance at period end$51 $62 
Schedule of Financing Receivable Credit Quality Indicators The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of June 30, 2021 and December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities:
June 30, 2021December 31, 2020
Rating
AAA$3,207 $— 
AA, AA+, AA-62,526 64,385 
A+, A, A-15,006 18,353 
BBB4,751 4,208 
Not Rated— 1,944 
Total $85,490 $88,890 
The following tables show the risk category of loans by loan category and year of origination as of June 30, 2021, and December 31, 2020, in thousands:
As of June 30, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
Commercial and industrial
Pass$330,626 $475,749 $277,874 $122,550 $197,617 $370,896 $528,785 $2,304,097 
Watch 7,252 13,154 22,947 12,886 8,633 17,574 35,506 117,952 
Substandard 2,171 21,377 10,899 8,780 11,706 21,646 20,280 96,859 
Commercial and industrial total$340,049 $510,280 $311,720 $144,216 $217,956 $410,116 $584,571 $2,518,908 
As of June 30, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
PPP
Pass$409,922 $327,475 $— $— $— $— $— $737,397 
Watch21,880 28,769 — — — — — 50,649 
Substandard20,697 20,432 — — — — — 41,129 
PPP total $452,499 $376,676 $ $ $ $ $ $829,175 
Owner occupied commercial real estate
Pass$331,097 $402,216 $371,104 $232,062 $143,692 $264,190 $27,773 $1,772,134 
Watch428 17,998 14,979 18,715 19,869 10,305 2,250 84,544 
Substandard743 18,083 13,464 7,908 13,903 28,201 1,154 83,456 
Owner occupied commercial real estate total$332,268 $438,297 $399,547 $258,685 $177,464 $302,696 $31,177 $1,940,134 
Non-owner occupied commercial real estate
Pass$206,934 $332,479 $355,445 $275,853 $163,047 $266,547 $32,340 $1,632,645 
Watch16,873 18,884 76,447 30,786 8,233 53,339 4,524 209,086 
Substandard16,968 13,315 20,879 23,329 24,802 46,035 310 145,638 
Non-owner occupied commercial real estate total$240,775 $364,678 $452,771 $329,968 $196,082 $365,921 $37,174 $1,987,369 
Real estate construction
Pass$151,473 $338,101 $215,455 $49,360 $10,003 $8,959 $17,078 $790,429 
Watch — 1,865 11,474 47,460 240 210 413 61,662 
Substandard— — 28 1,993 — 183 — 2,204 
Real estate construction total$151,473 $339,966 $226,957 $98,813 $10,243 $9,352 $17,491 $854,295 
Agricultural and agricultural real estate
Pass$115,287 $125,764 $79,157 $46,698 $28,105 $43,350 $134,975 $573,336 
Watch3,480 13,591 5,746 2,197 256 3,735 4,735 33,740 
Substandard9,082 8,793 6,886 20,498 5,641 11,210 10,422 72,532 
Agricultural and agricultural real estate total$127,849 $148,148 $91,789 $69,393 $34,002 $58,295 $150,132 $679,608 
Residential real estate
Pass$144,046 $116,571 $65,840 $82,530 $56,628 $277,236 $28,244 $771,095 
Watch1,236 1,966 1,634 1,703 2,039 6,998 — 15,576 
Substandard4,147 859 299 1,889 1,259 5,760 — 14,213 
Residential real estate total $149,429 $119,396 $67,773 $86,122 $59,926 $289,994 $28,244 $800,884 
Consumer
Pass$39,485 $26,718 $20,157 $13,147 $12,112 $21,088 $259,705 $392,412 
Watch132 220 1,362 130 508 1,234 3,590 
Substandard848 432 612 474 371 2,104 798 5,639 
Consumer total$40,337 $27,282 $20,989 $14,983 $12,613 $23,700 $261,737 $401,641 
Total Pass$1,728,870 $2,145,073 $1,385,032 $822,200 $611,204 $1,252,266 $1,028,900 $8,973,545 
Total Watch51,153 96,359 133,447 115,109 39,400 92,669 48,662 576,799 
Total Substandard 54,656 83,291 53,067 64,871 57,682 115,139 32,964 461,670 
Total Loans$1,834,679 $2,324,723 $1,571,546 $1,002,180 $708,286 $1,460,074 $1,110,526 $10,012,014 
As of December 31, 2020Amortized 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 
Watch 41,574 24,676 19,672 14,262 8,072 2,474 49,432 160,162 
Substandard 23,024 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 
As of December 31, 2020Amortized Cost Basis of Term Loans by Year of Origination
202020192018201720162015 and PriorRevolvingTotal
Watch22,533 — — — — — — 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 
Watch20,500 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 
Watch3,986 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 Substandard 143,440 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