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OTHER BORROWINGS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
OTHER BORROWINGS
OTHER BORROWINGS

Other borrowings, which HTLF defines as borrowings with an original maturity date of more than one year, outstanding at December 31, 2022 and 2021, are shown in the table below, net of unamortized discount and issuance costs, in thousands:
 20222021
Advances from the FHLB; weighted average interest rates were 3.03% at both December 31, 2022 and 2021, respectively
$740 $898 
Trust preferred securities148,284 147,316 
Contracts payable for purchase of real estate and other assets82 1,593 
Subordinated notes222,647 222,265 
Total$371,753 $372,072 

The HTLF Banks are members of the FHLB of Des Moines, Chicago, Dallas and Topeka. At December 31, 2022, none of HTLF's FHLB advances had call features. The advances from the FHLB are collateralized by a portion of the HTLF Banks' investments in FHLB stock of $10.9 million and $8.5 million at December 31, 2022 and 2021, respectively. In addition, the FHLB advances are collateralized with pledges of one- to four-family residential mortgages, commercial and agricultural
mortgages and securities totaling $4.00 billion at December 31, 2022, and $4.43 billion at December 31, 2021. At December 31, 2022, HTLF had $581.2 million of remaining FHLB borrowing capacity.

At December 31, 2022, HTLF had fifteen wholly-owned trust subsidiaries that were formed to issue trust preferred securities, which includes trust subsidiaries acquired in acquisitions since 2013. The proceeds from the offerings were used to purchase junior subordinated debentures from HTLF and were in turn used by HTLF for general corporate purposes. HTLF has the option to shorten the maturity date to a date not earlier than the callable date. HTLF may not shorten the maturity date without prior approval of the Board of Governors of the Federal Reserve System, if required. Early redemption is permitted under certain circumstances, such as changes in tax or regulatory capital rules. In connection with these offerings of trust preferred securities, the balance of deferred issuance costs included in other borrowings was $40,000 and $44,000 as of December 31, 2022 and December 31, 2021, respectively. These deferred costs are amortized on a straight-line basis over the life of the debentures. The majority of the interest payments are due quarterly.

A schedule of HTLF’s trust preferred offerings outstanding, as of December 31, 2022, were as follows, in thousands:
Amount
Issued
Interest
Rate
Interest Rate as
of 12/31/22
Maturity
Date
Callable
Date
Heartland Financial Statutory Trust IV$10,310 
2.75% over LIBOR
7.49%03/17/203403/17/2023
Heartland Financial Statutory Trust V20,619 
1.33% over LIBOR
5.41%04/07/203604/07/2023
Heartland Financial Statutory Trust VI20,619 
1.48% over LIBOR
6.25%09/15/203703/15/2023
Heartland Financial Statutory Trust VII18,042 
1.48% over LIBOR
6.24%09/01/203703/01/2023
Morrill Statutory Trust I9,370 
3.25% over LIBOR
7.97%12/26/203203/26/2023
Morrill Statutory Trust II9,087 
2.85% over LIBOR
7.59%12/17/203303/17/2023
Sheboygan Statutory Trust I 6,790 
2.95% over LIBOR
7.69%09/17/203303/17/2023
CBNM Capital Trust I4,558 
3.25% over LIBOR
8.02%12/15/203403/15/2023
Citywide Capital Trust III6,605 
2.80% over LIBOR
7.22%12/19/203304/23/2023
Citywide Capital Trust IV4,468 
2.20% over LIBOR
6.89%09/30/203405/23/2023
Citywide Capital Trust V12,424 
1.54% over LIBOR
6.31%07/25/203603/15/2023
OCGI Statutory Trust III3,020 
3.65% over LIBOR
8.48%09/30/203203/30/2023
OCGI Capital Trust IV5,511 
2.50% over LIBOR
7.27%12/15/203403/15/2023
BVBC Capital Trust II7,319 
3.25% over LIBOR
7.69%04/24/203304/24/2023
BVBC Capital Trust III9,582 
1.60% over LIBOR
6.35%09/30/203503/30/2023
Total trust preferred offerings148,324 
Less: deferred issuance costs(40)
 $148,284     

On September 8, 2021, HTLF issued $150.0 million of Fixed-to-Floating Rate Subordinated Notes due 2031 (the "2021 subordinated notes"), which were issued at par with an underwriting discount of $1.9 million. The 2021 subordinated notes have a fixed interest rate of 2.75% until September 15, 2026, at which time the interest rate will be reset quarterly to a benchmark interest rate, which is expected to be three-month term SOFR plus a spread of 210 basis points. Interest is payable quarterly. The 2021 subordinated notes mature on September 15, 2031, and become redeemable at HTLF's option on September 15, 2026. In connection with the sale of the notes, the balance of deferred issuance costs included in other borrowings was $443,000 at December 31, 2022, and $494,000 at December 31,2021. These deferred costs are amortized on a straight-line basis over the life of the notes.

On December 17, 2014, HTLF issued $75.0 million of subordinated notes with a maturity date of December 30, 2024. The notes were issued at par with an underwriting discount of $1.1 million. The interest rate on the notes is fixed at 5.75% per annum, payable semi-annually. In connection with the sale of the notes, the balance of deferred issuance costs included in other borrowings was $76,000 at December 31, 2022, and $114,000 at December 31, 2021. These deferred costs are amortized on a straight-line basis over the life of the notes.

For regulatory purposes, $162.9 million of the total $222.6 million of subordinated notes qualified as Tier 2 capital as of December 31, 2022.
Future payments, net of unamortized discount and issuance costs, at December 31, 2022, for other borrowings at their maturity date follow in the table below, in thousands.
2023$82 
202474,715 
2025— 
2026— 
2027196 
Thereafter296,760 
Total$371,753