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TERM DEBT
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
TERM DEBT
TERM DEBT

Term debt outstanding at December 31, 2023 and 2022, are shown in the table below, net of unamortized discount and issuance costs, in thousands:
 20232022
Advances from the FHLB; weighted average interest rate was 3.03% at December 31, 2022
$— $740 
Trust preferred securities149,288 148,284 
Contracts payable for purchase of real estate and other assets80 82 
Subordinated notes223,028 222,647 
Total$372,396 $371,753 
At December 31, 2023, HTLF had fifteen wholly-owned trust subsidiaries that were formed to issue trust preferred securities, which includes trust subsidiaries acquired in acquisitions since 2013. The proceeds from the offerings were used to purchase junior subordinated debentures from HTLF and were in turn used by HTLF or entities acquired by HTLF for general corporate purposes. HTLF has the option to shorten the maturity date to a date not earlier than the callable date. HTLF may not shorten the maturity date without prior approval of the Board of Governors of the Federal Reserve System, if required. Early redemption is permitted under certain circumstances, such as changes in tax or regulatory capital rules. In connection with these offerings of trust preferred securities, the balance of deferred issuance costs included in term debt was $0 and $40,000 as of December 31, 2023 and December 31, 2022, respectively. The majority of the interest payments are due quarterly.

A schedule of HTLF’s trust preferred offerings outstanding, as of December 31, 2023, were as follows, in thousands:
Amount
Issued
Interest
Rate
Interest Rate as
of 12/31/23
Maturity
Date
Callable
Date
Heartland Financial Statutory Trust IV$10,310 
2.75% over SOFR
8.39%03/17/203403/17/2024
Heartland Financial Statutory Trust V20,619 
1.33% over SOFR
6.9904/07/203604/07/2024
Heartland Financial Statutory Trust VI20,619 
1.48% over SOFR
7.1309/15/203703/15/2024
Heartland Financial Statutory Trust VII18,042 
1.48% over SOFR
7.1209/01/203703/01/2024
Morrill Statutory Trust I9,464 
3.25% over SOFR
8.8712/26/203203/26/2024
Morrill Statutory Trust II9,198 
2.85% over SOFR
8.4912/17/203303/17/2024
Sheboygan Statutory Trust I 6,878 
2.95% over SOFR
8.5909/17/203303/17/2024
CBNM Capital Trust I4,608 
3.25% over SOFR
8.9012/15/203403/15/2024
Citywide Capital Trust III6,661 
2.80% over SOFR
8.4512/19/203304/23/2024
Citywide Capital Trust IV4,526 
2.20% over SOFR
7.8409/30/203405/23/2024
Citywide Capital Trust V12,649 
1.54% over SOFR
7.1907/25/203603/15/2024
OCGI Statutory Trust III3,028 
3.65% over SOFR
9.3109/30/203203/30/2024
OCGI Capital Trust IV5,567 
2.50% over SOFR
8.1512/15/203403/15/2024
BVBC Capital Trust II7,359 
3.25% over SOFR
8.8904/24/203304/24/2024
BVBC Capital Trust III9,760 
1.60% over SOFR
7.1909/30/203503/30/2024
Total trust preferred offerings$149,288     

On September 8, 2021, HTLF issued $150.0 million of Fixed-to-Floating Rate Subordinated Notes due 2031 (the "2021 subordinated notes"), which were issued at par with an underwriting discount of $1.9 million. The 2021 subordinated notes have a fixed interest rate of 2.75% until September 15, 2026, at which time the interest rate will be reset quarterly to a benchmark interest rate, which is expected to be three-month term SOFR plus a spread of 210 basis points. Interest is payable quarterly. The 2021 subordinated notes mature on September 15, 2031, and become redeemable at HTLF's option on September 15, 2026. In connection with the sale of the notes, the balance of deferred issuance costs included in term debt was $392,000 at December 31, 2023, and $443,000 at December 31,2022. These deferred costs are amortized on a straight-line basis over the life of the notes.

On December 17, 2014, HTLF issued $75.0 million of subordinated notes with a maturity date of December 30, 2024. The notes were issued at par with an underwriting discount of $1.1 million. The interest rate on the notes is fixed at 5.75% per annum, payable semi-annually. In connection with the sale of the notes, the balance of deferred issuance costs included in term debt was $38,000 at December 31, 2023, and $76,000 at December 31, 2022. These deferred costs are amortized on a straight-line basis over the life of the notes.

For regulatory purposes, $148.2 million of the total $223.0 million of subordinated notes qualified as Tier 2 capital as of December 31, 2023.
Future payments, net of unamortized discount and issuance costs, at December 31, 2023, for term debt at their maturity date follow in the table below, in thousands.
2024$74,937 
2025— 
2026— 
2027— 
2028— 
Thereafter297,459 
Total$372,396