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SECURITIES
 6 Months Ended
Jun. 30, 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 June 30, 2023, and December 31, 2022, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2023    
U.S. treasuries$32,413 $— $(734)$31,679 
U.S. agencies48,944 — (5,908)43,036 
Obligations of states and political subdivisions985,387 5 (136,153)849,239 
Mortgage-backed securities - agency1,958,157 51 (271,562)1,686,646 
Mortgage-backed securities - non-agency2,150,547 39 (154,777)1,995,809 
Commercial mortgage-backed securities - agency99,072 — (15,247)83,825 
Commercial mortgage-backed securities - non-agency635,549 — (17,557)617,992 
Asset-backed securities425,632 — (12,916)412,716 
Corporate bonds59,199 — (2,788)56,411 
Total debt securities6,394,900 95 (617,642)5,777,353 
Equity securities with a readily determinable fair value20,688 — — 20,688 
Total$6,415,588 $95 $(617,642)$5,798,041 
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 June 30,
2023, and December 31, 2022, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2023    
Obligations of states and political subdivisions$834,673 $2,775 (30,506)$806,942 
Total$834,673 $2,775 $(30,506)$806,942 
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 June 30, 2023, and December 31, 2022, HTLF had $32.2 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 June 30, 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.
June 30, 2023
Amortized CostEstimated Fair Value
Due in 1 year or less$17,299 $16,935 
Due in 1 to 5 years70,602 68,532 
Due in 5 to 10 years48,317 40,477 
Due after 10 years989,725 854,421 
Total debt securities1,125,943 980,365 
Mortgage and asset-backed securities5,268,957 4,796,988 
Equity securities with a readily determinable fair value 20,688 20,688 
Total investment securities$6,415,588 $5,798,041 

The amortized cost and estimated fair value of debt securities held to maturity at June 30, 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.
June 30, 2023
Amortized CostEstimated Fair Value
Due in 1 year or less$1,459 $1,460 
Due in 1 to 5 years70,913 70,453 
Due in 5 to 10 years159,786 157,595 
Due after 10 years602,515 577,434 
Total debt securities$834,673 $806,942 

As of June 30, 2023, and December 31, 2022, securities with a carrying value of $2.88 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 and six months ended June 30, 2023 and 2022, are summarized as follows, in thousands:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Proceeds from sales$140,290 $149,840 $286,738 $973,911 
Gross security gains483 357 483 7,298 
Gross security losses808 2,998 1,912 7,948 
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 June 30, 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 June 30, 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
June 30, 2023
U.S. treasuries$28,270 $(652)5 $3,409 $(82)1 $31,679 $(734)6 
U.S. agencies— — — 43,036 (5,908)6 43,036 (5,908)6 
Obligations of states and political subdivisions2,698 (118)3 844,628 (136,035)162 847,326 (136,153)165 
Mortgage-backed securities - agency27,450 (1,774)30 1,657,307 (269,788)191 1,684,757 (271,562)221 
Mortgage-backed securities - non-agency393,712 (33,619)16 1,205,116 (121,158)43 1,598,828 (154,777)59 
Commercial mortgage-backed securities - agency1,795 (96)1 82,030 (15,151)19 83,825 (15,247)20 
Commercial mortgage-backed securities - non-agency7,254 (262)2 588,183 (17,295)16 595,437 (17,557)18 
Asset-backed securities31,941 (1,997)1 121,281 (10,919)10 153,222 (12,916)11 
Corporate bonds48,966 (1,532)2 7,445 (1,256)6 56,411 (2,788)8 
Total temporarily impaired securities$542,086 $(40,050)60 $4,552,435 $(577,592)454 $5,094,521 $(617,642)514 
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 
Securities held to maturityLess than 12 months12 months or longerTotal
Fair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		Count
June 30, 2023
Obligations of states and political subdivisions$727,436 $(30,464)155 $1,522 $(42)1 $728,958 $(30,506)156 
Total temporarily impaired securities$727,436 (30,464)155 $1,522 $(42)1 $728,958 (30,506)156 
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 reviews each security in the investment securities portfolio on a quarterly basis for potential credit losses, taking 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, and security and industry specific economic conditions. 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 HTLF's 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 and six months ended June 30, 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 declines in fair value are 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 and six months ended June 30, 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 June 30, 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 June 30, 2023, and December 31, 2022, which are updated quarterly and used to monitor the credit quality of the securities:
June 30, 2023December 31, 2022
Rating
AAA$83,190 $79,598 
AA, AA+, AA-588,448 588,354 
A+, A, A-138,122 136,624 
BBB20,618 20,623 
Not Rated4,295 4,204 
Total $834,673 $829,403 

Included in other investments were shares of stock in each Federal Home Loan Bank (the "FHLB") of which each of its Banks is a member at an amortized cost of $8.1 million at June 30, 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 June 30, 2023, and December 31, 2022, did not consider the investments to be impaired.