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SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2023
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 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 
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 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 
Investments Classified by Contractual Maturity Date
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 
Schedule of Realized Gross Gains (Losses)
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 
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 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 
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 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 
The following tables show the risk category of loans by loan category, year of origination and charge-offs as of March 31, 2023, in thousands:
As of March 31, 2023Amortized Cost Basis of Term Loans by Year of Origination
202320222021202020192018 and PriorRevolvingTotal
Commercial and industrial
Pass$171,784 $945,388 $401,138 $236,351 $94,489 $355,412 $1,129,728 $3,334,290 
Watch 372 14,254 3,822 3,023 6,093 4,914 25,162 57,640 
Substandard 2,116 10,883 14,284 9,093 21,814 11,594 36,631 106,415 
Commercial and industrial total$174,272 $970,525 $419,244 $248,467 $122,396 $371,920 $1,191,521 $3,498,345 
Commercial and industrial charge-offs$— $219 $95 $8 $— $788 $341 $1,451 
PPP
Pass$— $— $6,731 $102 $— $— $— $6,833 
Watch— — 6 — — — — 6 
Substandard— — 1,419 — — — — 1,419 
PPP total $— $— $8,156 $102 $— $— $— $8,258 
PPP charge-offs$— $— $— $— $— $— $— $— 
Owner occupied commercial real estate
Pass$90,398 $524,526 $753,107 $241,589 $263,294 $261,584 $34,578 $2,169,076 
Watch— 21,288 13,401 13,915 7,105 12,568 — 68,277 
Substandard6,107 7,172 23,591 22,360 5,484 9,721 750 75,185 
Owner occupied commercial real estate total$96,505 $552,986 $790,099 $277,864 $275,883 $283,873 $35,328 $2,312,538 
Owner occupied commercial real estate charge-offs$— $— $— $— $— $14 $— $14 
Non-owner occupied commercial real estate
Pass$141,649 $730,364 $543,098 $208,137 $257,733 $305,784 $73,088 $2,259,853 
Watch— 8,093 1,368 3,566 38,876 53,877 — 105,780 
Substandard— — 6,690 1,624 15,477 31,917 — 55,708 
Non-owner occupied commercial real estate total$141,649 $738,457 $551,156 $213,327 $312,086 $391,578 $73,088 $2,421,341 
Non-owner occupied commercial real estate charge-offs$— $— $— $— $— $— $— $— 
Real estate construction
Pass$45,771 $625,728 $303,674 $77,340 $20,886 $7,174 $8,224 $1,088,797 
Watch — 6,574 1,085 1,244 — 103 — 9,006 
Substandard— 3,428 356 121 434 44 — 4,383 
Real estate construction total$45,771 $635,730 $305,115 $78,705 $21,320 $7,321 $8,224 $1,102,186 
Real estate construction charge-offs$— $— $— $— $— $— $— $— 
Agricultural and agricultural real estate
Pass$39,667 $249,164 $125,673 $73,366 $31,283 $56,019 $197,976 $773,148 
Watch241 1,225 549 3,843 496 935 1,346 8,635 
Substandard— 7,618 3,378 212 1,154 15,017 1,021 28,400 
Agricultural and agricultural real estate total$39,908 $258,007 $129,600 $77,421 $32,933 $71,971 $200,343 $810,183 
Agricultural and agricultural real estate charge-offs$— $— $— $— $— $— $— $— 
Residential real estate
Pass$18,663 $181,925 $260,225 $62,951 $37,551 $238,866 $21,172 $821,353 
Watch— 2,549 2,618 85 1,372 5,415 433 12,472 
Substandard811 59 1,308 838 38 4,205 — 7,259 
Residential real estate total $19,474 $184,533 $264,151 $63,874 $38,961 $248,486 $21,605 $841,084 
Residential real estate charge-offs$— $— $— $— $— $— $— $— 
As of March 31, 2023Amortized Cost Basis of Term Loans by Year of Origination
202320222021202020192018 and PriorRevolvingTotal
Consumer
Pass$11,806 $75,894 $44,501 $10,554 $5,180 $18,586 $328,689 $495,210 
Watch— 51 227 59 109 1,524 1,434 3,404 
Substandard9 209 339 220 261 1,565 201 2,804 
Consumer total$11,815 $76,154 $45,067 $10,833 $5,550 $21,675 $330,324 $501,418 
Consumer charge-offs$— $24 $26 $11 $11 $6 $608 $686 
Total Pass$519,738 $3,332,989 $2,438,147 $910,390 $710,416 $1,243,425 $1,793,455 $10,948,560 
Total Watch613 54,034 23,076 25,735 54,051 79,336 28,375 265,220 
Total Substandard 9,043 29,369 51,365 34,468 44,662 74,063 38,603 281,573 
Total Loans$529,394 $3,416,392 $2,512,588 $970,593 $809,129 $1,396,824 $1,860,433 $11,495,353 
Total Charge-offs$— $243 $121 $19 $11 $808 $949 $2,151 

The following table show the risk category of loans by loan category and year of origination as of December 31, 2022, 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 
Watch 12,638 1,370 685 5,487 2,882 3,315 21,984 48,361 
Substandard 6,691 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 
Agricultural and agricultural real estate
Pass$324,791 $140,252 $79,307 $34,447 $22,600 $38,672 $239,686 $879,755 
Watch3,795 515 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 
As of December 31, 2022Amortized Cost Basis of Term Loans by Year of Origination
202220212020201920182017 and PriorRevolvingTotal
Residential real estate
Pass$189,133 $268,561 $64,627 $39,468 $34,863 $217,489 $23,331 $837,472 
Watch706 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 Substandard 21,341 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