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SECURITIES (Tables)
 9 Months Ended
Sep. 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 September 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
September 30, 2021    
U.S. treasuries$997 $16 $— $1,013 
U.S. agencies35,453 208 (628)35,033 
Obligations of states and political subdivisions1,790,972 53,601 (21,108)1,823,465 
Mortgage-backed securities - agency2,387,792 17,104 (33,632)2,371,264 
Mortgage-backed securities - non-agency1,619,636 9,760 (1,493)1,627,903 
Commercial mortgage-backed securities - agency128,609 2,021 (2,769)127,861 
Commercial mortgage-backed securities - non-agency560,445 1,612 (390)561,667 
Asset-backed securities868,215 10,570 (1,139)877,646 
Corporate bonds3,234 63 (3)3,294 
Total debt securities7,395,353 94,955 (61,162)7,429,146 
Equity securities with a readily determinable fair value20,790 — — 20,790 
Total$7,416,143 $94,955 $(61,162)$7,449,936 
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 
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, 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
September 30, 2021    
Obligations of states and political subdivisions$85,354 $9,656 $— $95,010 $— 
Total$85,354 $9,656 $— $95,010 $— 
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 September 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.
September 30, 2021
Amortized CostEstimated Fair Value
Due in 1 year or less$12,487 $12,527 
Due in 1 to 5 years19,354 20,278 
Due in 5 to 10 years238,253 241,971 
Due after 10 years1,560,562 1,588,029 
Total debt securities1,830,656 1,862,805 
Mortgage and asset-backed securities5,564,697 5,566,341 
Equity securities with a readily determinable fair value 20,790 20,790 
Total investment securities$7,416,143 $7,449,936 

The amortized cost and estimated fair value of debt securities held to maturity at September 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.
September 30, 2021
Amortized CostEstimated Fair Value
Due in 1 year or less$2,547 $2,553 
Due in 1 to 5 years42,225 44,163 
Due in 5 to 10 years34,046 39,188 
Due after 10 years6,536 9,106 
Total debt securities85,354 95,010 
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 nine months ended September 30, 2021 and 2020, are summarized as follows, in thousands:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Proceeds from sales$169,108 $306,383 $799,588 $818,022 
Gross security gains1,591 1,825 5,880 8,687 
Gross security losses56 726 1,533 3,924 
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 September 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 September 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
September 30, 2021
U.S. agencies$18,861 $(628)1 $— $— — $18,861 $(628)1 
Obligations of states and political subdivisions740,885 (18,939)131 47,453 (2,169)13 788,338 (21,108)144 
Mortgage-backed securities - agency1,413,527 (21,898)58 336,528 (11,734)15 1,750,055 (33,632)73 
Mortgage-backed securities - non-agency468,119 (1,241)12 48,728 (252)5 516,847 (1,493)17 
Commercial mortgage-backed securities - agency80,595 (2,769)14 — — — 80,595 (2,769)14 
Commercial mortgage-backed securities - non-agency76,559 (218)1 14,944 (172)2 91,503 (390)3 
Asset-backed securities127,455 (943)10 21,692 (196)8 149,147 (1,139)18 
Corporate bonds497 (3)1 — — — 497 (3)1 
Total temporarily impaired securities$2,926,498 $(46,639)228 $469,345 $(14,523)43 $3,395,843 $(61,162)271 
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 
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 nine months ended September 30, 2021 and 2020:
Three Months Ended
September 30,
20212020
Beginning balance$51 $62 
Provision (benefit) for credit losses(51)(1)
Balance at period end$— $61 
Nine Months Ended
September 30,
20212020
Beginning balance$51 $— 
Impact of ASU 2016-13 adoption on January 1,— 158 
Adjusted balance at January 1,51 158 
Provision (benefit) for credit losses(51)(97)
Balance at period end$— $61 
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 September 30, 2021 and December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities:
September 30, 2021December 31, 2020
Rating
AAA$3,236 $— 
AA, AA+, AA-61,793 64,385 
A+, A, A-14,933 18,353 
BBB4,914 4,208 
Not Rated478 1,944 
Total $85,354 $88,890 
The following tables show the risk category of loans by loan category and year of origination as of September 30, 2021, and December 31, 2020, in thousands:
As of September 30, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
Commercial and industrial
Pass$460,258 $401,606 $239,419 $100,840 $179,241 $343,238 $602,155 $2,326,757 
Watch 13,274 14,096 13,982 11,230 6,363 16,657 30,157 105,759 
Substandard 14,511 9,315 14,949 8,858 10,880 16,921 30,419 105,853 
Commercial and industrial total$488,043 $425,017 $268,350 $120,928 $196,484 $376,816 $662,731 $2,538,369 
PPP
Pass$297,218 $59,481 $— $— $— $— $— $356,699 
Watch19,656 11,210 — — — — — 30,866 
Substandard19,434 2,248 — — — — — 21,682 
PPP total $336,308 $72,939 $— $— $— $— $— $409,247 
Owner occupied commercial real estate
Pass$679,698 $378,366 $337,572 $207,982 $128,973 $220,013 $29,446 $1,982,050 
Watch2,517 16,981 13,277 18,264 15,618 9,216 1,853 77,726 
Substandard4,490 17,518 13,338 2,866 13,857 21,632 1,750 75,451 
Owner occupied commercial real estate total$686,705 $412,865 $364,187 $229,112 $158,448 $250,861 $33,049 $2,135,227 
Non-owner occupied commercial real estate
Pass$394,782 $316,992 $353,092 $274,618 $166,123 $199,072 $37,518 $1,742,197 
Watch12,832 17,170 48,377 35,098 7,595 35,783 — 156,855 
Substandard18,113 15,291 22,011 2,828 14,848 48,036 308 121,435 
Non-owner occupied commercial real estate total$425,727 $349,453 $423,480 $312,544 $188,566 $282,891 $37,826 $2,020,487 
Real estate construction
Pass$240,048 $282,023 $177,594 $15,228 $8,501 $9,628 $13,269 $746,291 
Watch 2,191 876 15,006 47,267 — — 112 65,452 
Substandard— 50 47 1,992 — 169 — 2,258 
Real estate construction total$242,239 $282,949 $192,647 $64,487 $8,501 $9,797 $13,381 $814,001 
Agricultural and agricultural real estate
Pass$174,014 $114,928 $66,869 $37,763 $24,751 $39,479 $128,684 $586,488 
As of September 30, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
Watch5,343 10,435 5,967 3,013 38 3,711 6,840 35,347 
Substandard7,559 6,354 8,570 18,243 3,937 9,826 8,346 62,835 
Agricultural and agricultural real estate total$186,916 $131,717 $81,406 $59,019 $28,726 $53,016 $143,870 $684,670 
Residential real estate
Pass$251,931 $103,529 $58,179 $68,551 $50,817 $244,641 $32,474 $810,122 
Watch1,086 4,650 1,205 1,503 807 5,043 — 14,294 
Substandard4,085 537 496 2,555 1,185 7,082 — 15,940 
Residential real estate total $257,102 $108,716 $59,880 $72,609 $52,809 $256,766 $32,474 $840,356 
Consumer
Pass$57,680 $22,845 $16,732 $10,290 $11,722 $18,442 $265,241 $402,952 
Watch912 196 281 1,368 190 542 1,387 4,876 
Substandard891 359 511 259 335 1,742 625 4,722 
Consumer total$59,483 $23,400 $17,524 $11,917 $12,247 $20,726 $267,253 $412,550 
Total Pass$2,555,629 $1,679,770 $1,249,457 $715,272 $570,128 $1,074,513 $1,108,787 $8,953,556 
Total Watch57,811 75,614 98,095 117,743 30,611 70,952 40,349 491,175 
Total Substandard 69,083 51,672 59,922 37,601 45,042 105,408 41,448 410,176 
Total Loans$2,682,523 $1,807,056 $1,407,474 $870,616 $645,781 $1,250,873 $1,190,584 $9,854,907 

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 
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 
As of December 31, 2020Amortized Cost Basis of Term Loans by Year of Origination
202020192018201720162015 and PriorRevolvingTotal
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