XML 61 R36.htm IDEA: XBRL DOCUMENT v3.22.4
SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2022
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, 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 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 
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, 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 $— 
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 
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 
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, 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 
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 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 
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 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 
The following tables show the risk category of loans by loan category and year of origination as of December 31, 2022 and December 31, 2021, in thousands:
As of December 31, 2022Amortized Cost Basis of Term Loans by Year of Origination
202220212020201920182017 and PriorRevolvingTotal
Commercial and industrial
Pass$967,103 $442,001 $260,021 $101,998 $57,776 $421,312 $1,064,333 $3,314,544 
Watch12,638 1,370 685 5,487 2,882 3,315 21,984 48,361 
Substandard6,691 14,366 9,369 22,171 5,546 6,758 36,608 101,509 
Commercial and industrial total$986,432 $457,737 $270,075 $129,656 $66,204 $431,385 $1,122,925 $3,464,414 
PPP
Pass$— $7,807 $526 $— $— $— $— $8,333 
Watch — 7 — — — — — 7 
Substandard— 2,685 — — — — — 2,685 
PPP total$— $10,499 $526 $— $— $— $— $11,025 
Owner occupied commercial real estate
Pass$511,547 $781,946 $255,476 $266,228 $103,943 $179,503 $34,117 $2,132,760 
Watch22,079 3,410 12,346 8,520 3,645 11,899 — 61,899 
Substandard2,971 23,802 26,490 6,358 2,574 7,353 1,100 70,648 
Owner occupied commercial real estate total$536,597 $809,158 $294,312 $281,106 $110,162 $198,755 $35,217 $2,265,307 
Non-owner occupied commercial real estate
Pass$756,059 $515,075 $227,383 $261,964 $127,400 $210,289 $70,398 $2,168,568 
Watch8,131 792 2,849 38,218 38,510 16,180 547 105,227 
Substandard202 6,784 1,838 16,019 22,332 9,970 — 57,145 
Non-owner occupied commercial real estate total$764,392 $522,651 $232,070 $316,201 $188,242 $236,439 $70,945 $2,330,940 
Real estate construction
Pass$597,370 $328,391 $88,660 $21,221 $2,568 $6,274 $8,252 $1,052,736 
Watch 665 16,218 1,257 — — 122 — 18,262
Substandard2,587 356 173 446 1,478 44 — 5,084
Real estate construction total$600,622 $344,965 $90,090 $21,667 $4,046 $6,440 $8,252 $1,076,082 
As of December 31, 2022Amortized Cost Basis of Term Loans by Year of Origination
202220212020201920182017 and PriorRevolvingTotal
Agricultural and agricultural real estate
Pass $324,791 $140,252 $79,307 $34,447 $22,600 $38,672 $239,686 $879,755 
Watch 3,795 515 3,865 641 444 672 902 10,834 
Substandard8,674 3,224 204 1,859 12,323 2,682 955 29,921 
Agricultural and agricultural real estate total$337,260 $143,991 $83,376 $36,947 $35,367 $42,026 $241,543 $920,510 
Residential real estate
Pass$189,133 $268,561 $64,627 $39,468 $34,863 $217,489 $23,331 $837,472 
Watch 706 1,095 88 957 2,296 2,237 399 7,778
Substandard28 1,273 1,024 99 792 4,895 — 8,111
Residential real estate total$189,867 $270,929 $65,739 $40,524 $37,951 $224,621 $23,730 $853,361 
Consumer
Pass$80,592 $47,787 $11,722 $6,022 $4,840 $24,655 $325,247 $500,865 
Watch20 191 35 119 74 1,584 953 2,976
Substandard188 331 242 303 75 1,539 194 2,872
Consumer total$80,800 $48,309 $11,999 $6,444 $4,989 $27,778 $326,394 $506,713 
Total pass$3,426,595 $2,531,820 $987,722 $731,348 $353,990 $1,098,194 $1,765,364 $10,895,033 
Total watch48,034 23,598 21,125 53,942 47,851 36,009 24,785 255,344
Total substandard21,341 52,821 39,340 47,255 45,120 33,241 38,857 277,975
Total loans $3,495,970 $2,608,239 $1,048,187 $832,545 $446,961 $1,167,444 $1,829,006 $11,428,352 

As of December 31, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
Commercial and industrial
Pass$604,659 $359,533 $203,960 $89,694 $171,709 $330,094 $708,525 $2,468,174 
Watch10,633 12,790 12,550 8,210 3,611 14,976 24,626 87,396 
Substandard19,888 6,391 13,050 8,535 6,619 12,052 22,980 89,515 
Commercial and industrial total$635,180 $378,714 $229,560 $106,439 $181,939 $357,122 $756,131 $2,645,085 
PPP
Pass$146,370 $25,707 $— $— $— $— $— $172,077 
Watch10,726 127 — — — — — 10,853 
Substandard16,932 21 — — — — — 16,953 
PPP total$174,028 $25,855 $— $— $— $— $— $199,883 
Owner occupied commercial real estate
Pass$940,043 $328,052 $315,497 $180,936 $115,142 $189,647 $34,233 $2,103,550 
Watch4,676 13,956 7,759 10,501 15,032 6,830 35 58,789 
Substandard11,958 20,769 13,734 2,809 13,912 13,063 1,750 77,995 
Owner occupied commercial real estate total$956,677 $362,777 $336,990 $194,246 $144,086 $209,540 $36,018 $2,240,334 
Non-owner occupied commercial real estate
Pass$609,968 $263,093 $315,815 $236,823 $152,059 $166,792 $28,728 $1,773,278 
Watch4,754 9,109 35,496 29,227 4,865 35,901 — 119,352 
Substandard15,722 10,612 21,798 3,599 14,023 51,766 441 117,961 
Non-owner occupied commercial real estate total$630,444 $282,814 $373,109 $269,649 $170,947 $254,459 $29,169 $2,010,591 
As of December 31, 2021Amortized Cost Basis of Term Loans by Year of Origination
202120202019201820172016 and PriorRevolvingTotal
Real estate construction
Pass$381,283 $206,879 $169,606 $14,197 $7,163 $7,823 $14,507 $801,458 
Watch2,704 858 2,145 44,846 — — 14 50,567
Substandard— 50 46 3,944 — 54 — 4,094
Real estate construction total$383,987 $207,787 $171,797 $62,987 $7,163 $7,877 $14,521 $856,119 
Agricultural and agricultural real estate
Pass$217,179 $102,030 $47,927 $32,913 $22,029 $35,548 $220,065 $677,691 
Watch4,018 10,390 4,688 2,270 33 2,038 2,948 26,385 
Substandard9,250 1,095 4,910 15,825 3,212 8,859 6,526 49,677 
Agricultural and agricultural real estate total$230,447 $113,515 $57,525 $51,008 $25,274 $46,445 $229,539 $753,753 
Residential real estate
Pass$311,292 $86,355 $50,762 $53,773 $43,619 $230,566 $29,017 $805,384 
Watch3,928 1,499 750 1,452 734 1,977 1,000 11,340
Substandard2,528 444 410 2,317 1,139 5,721 — 12,559
Residential real estate total$317,748 $88,298 $51,922 $57,542 $45,492 $238,264 $30,017 $829,283 
Consumer
Pass$69,172 $20,258 $13,051 $9,001 $10,986 $18,202 $271,034 $411,704 
Watch555 309 392 373 113 591 2,210 4,543
Substandard267 204 218 236 363 1,611 378 3,277
Consumer total$69,994 $20,771 $13,661 $9,610 $11,462 $20,404 $273,622 $419,524 
Total pass$3,279,966 $1,391,907 $1,116,618 $617,337 $522,707 $978,672 $1,306,109 $9,213,316 
Total watch41,994 49,038 63,780 96,879 24,388 62,313 30,833 369,225
Total substandard76,545 39,586 54,166 37,265 39,268 93,126 32,075 372,031
Total loans$3,398,505 $1,480,531 $1,234,564 $751,481 $586,363 $1,134,111 $1,369,017 $9,954,572