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SECURITIES
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
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, 2022, and December 31, 2021, are summarized in the table below, in thousands:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
December 31, 2022    
U.S. treasuries$32,369 $8 $(678)$31,699 
U.S. agencies49,437 — (6,302)43,135 
Obligations of states and political subdivisions1,049,578 14 (170,155)879,437 
Mortgage-backed securities - agency2,042,092 56 (270,043)1,772,105 
Mortgage-backed securities - non-agency2,327,308 1,417 (146,849)2,181,876 
Commercial mortgage-backed securities - agency100,518 — (15,395)85,123 
Commercial mortgage-backed securities - non-agency679,511 — (20,052)659,459 
Asset-backed securities428,397 — (12,343)416,054 
Corporate bonds59,205 — (1,263)57,942 
Total debt securities6,768,415 1,495 (643,080)6,126,830 
Equity securities with a readily determinable fair value20,314 — — 20,314 
Total$6,788,729 $1,495 $(643,080)$6,147,144 
December 31, 2021
U.S. treasuries$997 $11 $— $1,008 
U.S. agencies193,932 264 (812)193,384 
Obligations of states and political subdivisions2,045,386 56,263 (16,616)2,085,033 
Mortgage-backed securities - agency2,388,601 11,870 (51,182)2,349,289 
Mortgage-backed securities - non-agency1,749,838 4,570 (11,029)1,743,379 
Commercial mortgage-backed securities - agency125,397 1,429 (2,914)123,912 
Commercial mortgage-backed securities - non-agency600,253 998 (363)600,888 
Asset-backed securities408,167 2,803 (1,317)409,653 
Corporate bonds2,979 61 — 3,040 
Total debt securities7,515,550 78,269 (84,233)7,509,586 
Equity securities20,788 — — 20,788 
Total$7,536,338 $78,269 $(84,233)$7,530,374 

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 2022, and December 31, 2021, 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, 2022    
Obligations of states and political subdivisions$829,403 $3,096 $(55,942)$776,557 $— 
Total$829,403 $3,096 $(55,942)$776,557 $— 
December 31, 2021
Obligations of states and political subdivisions$84,709 $9,430 $— $94,139 $— 
Total$84,709 $9,430 $— $94,139 $— 
During the third quarter of 2022, HTLF transferred taxable municipal bonds with an amortized cost basis of $934.5 million and fair value of $748.3 million from available for sale to held to maturity. On the date of the transfer, accumulated other comprehensive income (loss) included $186.3 million of net unrealized losses, after tax, attributable to these securities, and the net unrealized losses will be amortized into interest income over the remaining life of the transferred securities. The bonds were transferred at fair value at the date of transfer.

As of December 31, 2022, HTLF had $33.0 million compared to $29.4 million at December 31, 2021, of accrued interest receivable, which is included in other assets on the consolidated balance sheets. HTLF does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses calculation.

The amortized cost and estimated fair value of investment securities carried at fair value at December 31, 2022, 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, 2022
Amortized CostEstimated Fair Value
Due in 1 year or less$490 $488 
Due in 1 to 5 years87,069 85,861 
Due in 5 to 10 years53,649 45,795 
Due after 10 years1,049,381 880,069 
    Total debt securities1,190,589 1,012,213 
Mortgage and asset-backed securities5,577,826 5,114,617 
Equity securities with a readily determinable fair value 20,314 20,314 
Total investment securities$6,788,729 $6,147,144 

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2022, 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, 2022
Amortized CostEstimated Fair Value
Due in 1 year or less$1,233 $1,236 
Due in 1 to 5 years70,253 69,799 
Due in 5 to 10 years129,072 126,177 
Due after 10 years628,845 579,345 
Total investment securities$829,403 $776,557 

As of December 31, 2022, securities with a carrying value of $1.49 billion compared to $1.66 billion at December 31, 2021, were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required and permitted by law.

Gross gains and losses realized related to sales of securities carried at fair value for the years ended December 31, 2022, 2021 and 2020 are summarized as follows, in thousands:
For the Years Ended December 31,
 202220212020
Proceeds from sales$1,048,525 $1,475,598 $1,097,378 
Gross security gains7,299 11,892 13,208 
Gross security losses9,191 5,982 5,616 
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 HTLF's securities portfolio as of December 31, 2022, and December 31, 2021. 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, 2022, and December 31, 2021, respectively. For securities transferred to held to maturity during the third quarter of 2022, the reference point was the date of transfer.
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, 2022
U.S. treasuries$28,699 $(678)4 $— $— — $28,699 $(678)4 
U.S. agencies$16,487 $(222)5 $26,648 $(6,080)2 $43,135 $(6,302)7 
Obligations of states and political subdivisions288,457 (28,378)69 589,641 (141,777)113 878,098 (170,155)182 
Mortgage-backed securities - agency241,288 (21,420)99 1,528,951 (248,623)126 1,770,239 (270,043)225 
Mortgage-backed securities - non-agency950,054 (70,213)25 693,531 (76,636)25 1,643,585 (146,849)50 
Commercial mortgage-backed securities - agency27,732 (2,291)12 57,392 (13,104)7 85,124 (15,395)19 
Commercial mortgage-backed securities - non-agency530,541 (16,830)15 84,619 (3,222)4 615,160 (20,052)19 
Asset-backed securities118,613 (6,107)7 56,621 (6,236)6 175,234 (12,343)13 
Corporate bonds57,544 (1,257)7 398 (6)1 57,942 (1,263)8 
Total temporarily impaired securities$2,259,415 $(147,396)243 $3,037,801 $(495,684)284 $5,297,216 $(643,080)527 
December 31, 2021
U.S. agencies$100,839 $(812)2 $— $— — $100,839 $(812)2 
Obligations of states and political subdivisions596,866 (10,115)113 236,329 (6,501)49 833,195 (16,616)162 
Mortgage-backed securities - agency1,383,808 (33,291)83 474,724 (17,891)19 1,858,532 (51,182)102 
Mortgage-backed securities - non-agency929,515 (10,870)27 23,821 (159)5 953,336 (11,029)32 
Commercial mortgage-backed securities - agency26,999 (689)8 53,025 (2,225)5 80,024 (2,914)13 
Commercial mortgage-backed securities - non-agency74,450 (145)3 14,124 (218)2 88,574 (363)5 
Asset-backed securities113,945 (1,201)6 13,799 (116)6 127,744 (1,317)12 
Total temporarily impaired securities$3,226,422 $(57,123)242 $815,822 $(27,110)86 $4,042,244 $(84,233)328 

Securities held to maturityLess than 12 months12 months or longerTotal
Fair
 Value		Unrealized
Losses		CountFair
 Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		Count
December 31, 2022
Obligations of states and political subdivisions$697,424 $(55,942)155 $— $— — $697,424 $(55,942)155 
Total temporarily impaired securities$697,424 $(55,942)155$— $— $697,424 $(55,942)155 

HTLF had no securities held to maturity with unrealized losses at December 31, 2021.

HTLF reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors, and the relative significance of any single factor can vary by security. Some factors
HTLF may consider include changes in security ratings, financial condition of the issuer, as well as security and industry specific economic conditions. In addition, with regard to debt securities, HTLF may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. For certain debt securities in unrealized loss positions, HTLF prepares cash flow analyses to compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security.

The unrealized losses on HTLF's mortgage and asset-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. The losses are not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because HTLF has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the years ended December 31, 2022 and December 31, 2021.

The unrealized losses on HTLF's obligations of states and political subdivisions are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the published credit ratings of these securities and the stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or widening market spreads due to insurance company downgrades and not underlying credit quality, and because HTLF has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the years ended December 31, 2022 and December 31, 2021.

In the first quarter of 2022, HTLF sold two obligations of states and political subdivisions securities from the held to maturity portfolio. Because the evaluation of the underlying credit quality of the individual securities indicated significant deterioration, it was unlikely HTLF would recover the remaining basis of the securities prior to maturity and therefore inconsistent with HTLF's original intent upon purchase and classification of these held to maturity securities. The carrying value of these securities was $2.2 million, and the associated gross gains were $100,000.

The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of December 31, 2022 and December 31, 2021, which are updated quarterly and used to monitor the credit quality of the securities:
December 31, 2022December 31, 2021
Rating
AAA$79,598 $3,265 
AA, AA+, AA-588,354 61,471 
A+, A, A-136,624 15,034 
BBB20,623 4,939 
Not Rated4,204 — 
Total $829,403 $84,709 

Included in other securities were shares of stock in each Federal Home Loan Bank (the "FHLB") of Des Moines, Chicago, Dallas and Topeka at an amortized cost of $12.3 million at December 31, 2022 and $22.6 million at December 31, 2021.

The HTLF Banks are required to maintain FHLB stock as members of the various FHLBs as required by these institutions. These equity securities are "restricted" in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value approximates amortized cost. HTLF considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. HTLF evaluates impairment in these investments based on the ultimate recoverability of the par value and at December 31, 2022, did not consider the investments to be other than temporarily impaired.