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SECURITIES (Tables)
 6 Months Ended
Jun. 30, 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 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 
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 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 
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 
Investments Classified by Contractual Maturity Date
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 
Schedule of Realized Gross Gains (Losses)
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 
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 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 
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 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 
The following table shows the risk category of loans by loan category, year of origination and charge-offs as of June 30, 2023, in thousands:
As of June 30, 2023Amortized Cost Basis of Term Loans by Year of Origination
202320222021202020192018 and PriorRevolvingTotal
Commercial and industrial
Pass$347,091 $891,309 $375,623 $221,147 $88,352 $340,468 $1,139,264 $3,403,254 
Watch 5,500 16,536 1,431 1,764 6,012 11,266 46,907 89,416 
Substandard 20,127 7,012 5,520 9,008 20,299 10,765 25,279 98,010 
Commercial and industrial total$372,718 $914,857 $382,574 $231,919 $114,663 $362,499 $1,211,450 $3,590,680 
Commercial and industrial charge-offs$— $290 $101 $1,414 $554 $1,386 $1,392 $5,137 
PPP
Pass$— $— $3,944 $69 $— $— $— $4,013 
Watch— — 6 — — — — 6 
Substandard— — 120 — — — — 120 
PPP total $— $— $4,070 $69 $— $— $— $4,139 
PPP charge-offs$— $— $— $— $— $— $— $— 
Owner occupied commercial real estate
As of June 30, 2023Amortized Cost Basis of Term Loans by Year of Origination
202320222021202020192018 and PriorRevolvingTotal
Pass$223,815 $500,240 $768,837 $228,536 $246,327 $242,129 $40,683 $2,250,567 
Watch19,888 15,187 15,238 4,013 8,418 11,065 321 74,130 
Substandard23,518 9,897 3,665 22,093 5,154 9,322 352 74,001 
Owner occupied commercial real estate total$267,221 $525,324 $787,740 $254,642 $259,899 $262,516 $41,356 $2,398,698 
Owner occupied commercial real estate charge-offs$— $— $— $5 $— $14 $— $19 
Non-owner occupied commercial real estate
Pass$282,886 $742,328 $518,555 $219,439 $245,083 $302,523 $63,131 $2,373,945 
Watch— 4,448 1,355 3,222 27,118 40,103 — 76,246 
Substandard— 6,873 3,757 942 26,916 42,057 — 80,545 
Non-owner occupied commercial real estate total$282,886 $753,649 $523,667 $223,603 $299,117 $384,683 $63,131 $2,530,736 
Non-owner occupied commercial real estate charge-offs$— $— $— $29 $— $— $— $29 
Real estate construction
Pass$114,193 $557,657 $262,600 $41,632 $12,094 $4,591 $7,906 $1,000,673 
Watch — 6,546 — 76 — 102 — 6,724 
Substandard406 4,239 665 340 17 70 — 5,737 
Real estate construction total$114,599 $568,442 $263,265 $42,048 $12,111 $4,763 $7,906 $1,013,134 
Real estate construction charge-offs$— $— $— $— $— $— $— $— 
Agricultural and agricultural real estate
Pass$109,375 $233,885 $120,638 $69,406 $30,000 $51,715 $187,766 $802,785 
Watch780 240 750 2,901 418 607 764 6,460 
Substandard1,366 9,832 3,374 54 911 14,117 918 30,572 
Agricultural and agricultural real estate total$111,521 $243,957 $124,762 $72,361 $31,329 $66,439 $189,448 $839,817 
Agricultural and agricultural real estate charge-offs$— $— $— $— $— $— $5,309 $5,309 
Residential real estate
Pass$41,579 $189,390 $256,355 $80,165 $44,278 $177,741 $19,838 $809,346 
Watch— 2,045 3,006 48 1,441 4,632 34 11,206 
Substandard799 203 1,512 827 219 3,926 399 7,885 
Residential real estate total $42,378 $191,638 $260,873 $81,040 $45,938 $186,299 $20,271 $828,437 
Residential real estate charge-offs$— $59 $— $— $— $— $— $59 
Consumer
Pass$30,129 $70,624 $41,217 $9,952 $4,700 $15,735 $332,789 $505,146 
Watch625 69 829 35 44 801 1,491 3,894 
Substandard8 264 222 95 185 1,938 581 3,293 
Consumer total$30,762 $70,957 $42,268 $10,082 $4,929 $18,474 $334,861 $512,333 
Consumer charge-offs$— $87 $71 $23 $18 $8 $1,004 $1,211 
Total Pass$1,149,068 $3,185,433 $2,347,769 $870,346 $670,834 $1,134,902 $1,791,377 $11,149,729 
Total Watch26,793 45,071 22,615 12,059 43,451 68,576 49,517 268,082 
Total Substandard 46,224 38,320 18,835 33,359 53,701 82,195 27,529 300,163 
Total Loans$1,222,085 $3,268,824 $2,389,219 $915,764 $767,986 $1,285,673 $1,868,423 $11,717,974 
Total Charge-offs$— $436 $172 $1,471 $572 $1,408 $7,705 $11,764 

The following table shows 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 
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