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SECURITIES
 3 Months Ended
Mar. 31, 2023
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 that are carried at fair value as of March 31, 2023, and December 31, 2022, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
March 31, 2023    
U.S. treasuries$32,391 $33 $(492)$31,932 
U.S. agencies49,062 — (5,478)43,584 
Obligations of states and political subdivisions1,023,650 47 (135,775)887,922 
Mortgage-backed securities - agency2,002,260 85 (244,876)1,757,469 
Mortgage-backed securities - non-agency2,260,462 3,739 (146,319)2,117,882 
Commercial mortgage-backed securities - agency99,914 — (13,892)86,022 
Commercial mortgage-backed securities - non-agency675,425 — (17,551)657,874 
Asset-backed securities448,001 — (12,478)435,523 
Corporate bonds59,202 — (1,357)57,845 
Total debt securities6,650,367 3,904 (578,218)6,076,053 
Equity securities with a readily determinable fair value20,604 — — 20,604 
Total$6,670,971 $3,904 $(578,218)$6,096,657 
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 

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of March 31, 2023, and December 31, 2022, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
March 31, 2023    
Obligations of states and political subdivisions$832,098 $3,882 $(20,308)$815,672 
Total$832,098 $3,882 $(20,308)$815,672 
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 

As of March 31, 2023, and December 31, 2022, HTLF had $30.6 million and $33.0 million, respectively, 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 March 31, 2023, 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.
March 31, 2023
Amortized CostEstimated Fair Value
Due in 1 year or less$875 $867 
Due in 1 to 5 years86,596 85,549 
Due in 5 to 10 years55,440 48,402 
Due after 10 years1,021,394 886,465 
Total debt securities1,164,305 1,021,283 
Mortgage and asset-backed securities5,486,062 5,054,770 
Equity securities with a readily determinable fair value 20,604 20,604 
Total investment securities$6,670,971 $6,096,657 

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2023, 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.
March 31, 2023
Amortized CostEstimated Fair Value
Due in 1 year or less$1,243 $1,246 
Due in 1 to 5 years71,115 70,976 
Due in 5 to 10 years143,654 143,498 
Due after 10 years616,086 599,952 
Total debt securities$832,098 $815,672 

As of March 31, 2023, and December 31, 2022, securities with a carrying value of $2.96 billion and $1.49 billion, respectively, were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required or permitted by law.

Gross gains and losses realized related to the sales of securities carried at fair value for the three months ended March 31, 2023 and 2022, are summarized as follows, in thousands:
Three Months Ended
March 31,
20232022
Proceeds from sales$146,448 $824,071 
Gross security gains— 6,941 
Gross security losses1,104 4,950 
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 March 31, 2023, and December 31, 2022. 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 March 31, 2022, and December 31, 2021, 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
March 31, 2023
U.S. treasuries$25,913 $(492)3 $— $— — $25,913 $(492)3 
U.S. agencies133 (2)2 43,451 (5,476)4 43,584 (5,478)6 
Obligations of states and political subdivisions88,910 (3,541)20 794,010 (132,234)155 882,920 (135,775)175 
Mortgage-backed securities - agency52,854 (4,839)30 1,701,881 (240,037)187 1,754,735 (244,876)217 
Mortgage-backed securities - non-agency362,023 (26,315)12 1,165,995 (120,004)41 1,528,018 (146,319)53 
Commercial mortgage-backed securities - agency3,607 (146)2 82,415 (13,746)18 86,022 (13,892)20 
Commercial mortgage-backed securities - non-agency119,454 (5,360)8 498,815 (12,191)12 618,269 (17,551)20 
Asset-backed securities137,105 (3,582)3 94,100 (8,896)10 231,205 (12,478)13 
Corporate bonds51,892 (601)3 5,953 (756)5 57,845 (1,357)8 
Total temporarily impaired securities$841,891 $(44,878)83 $4,386,620 $(533,340)432 $5,228,511 $(578,218)515 
December 31, 2022
U.S. treasuries$28,699 $(678)4 $— $— — $28,699 $(678)4 
U.S. agencies16,487 (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 
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 commercial mortgage, 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 three months ended March 31, 2023 and 2022.
The unrealized losses on HTLF's obligations of states and political subdivisions available for sale 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 three months ended March 31, 2023 and 2022.
Based on HTLF's credit loss methodology applicable to held to maturity debt securities, no allowance for credit losses was required at both March 31, 2023, and December 31, 2022.

The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of March 31, 2023, and December 31, 2022, which are updated quarterly and used to monitor the credit quality of the securities:
March 31, 2023December 31, 2022
Rating
AAA$79,848 $79,598 
AA, AA+, AA-590,034 588,354 
A+, A, A-137,368 136,624 
BBB20,599 20,623 
Not Rated4,249 4,204 
Total $832,098 $829,403 

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 $8.9 million at March 31, 2023, and $12.3 million at December 31, 2022.

The HTLF banks are required by federal law to maintain FHLB stock as members of the various FHLBs. These equity securities are "restricted" in that they can only be sold back to the respective institutions from which they were acquired or another member institution at par. Therefore, the FHLB stock is less liquid than other marketable equity securities, and the 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 March 31, 2023, and December 31, 2022, did not consider the investments to be impaired.