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SECURITIES
 3 Months Ended
Mar. 31, 2024
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, 2024, and December 31, 2023, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
March 31, 2024    
U.S. treasuries$32,481 $— $(259)$32,222 
U.S. agencies14,084 — (192)13,892 
Obligations of states and political subdivisions836,830 5 (109,344)727,491 
Mortgage-backed securities - agency1,590,782 13 (231,254)1,359,541 
Mortgage-backed securities - non-agency1,542,986 37 (85,225)1,457,798 
Commercial mortgage-backed securities - agency75,782 — (11,708)64,074 
Commercial mortgage-backed securities - non-agency436,274 — (10,180)426,094 
Asset-backed securities214,676 — (17,568)197,108 
Corporate bonds121,108 — (2,407)118,701 
Total debt securities4,865,003 55 (468,137)4,396,921 
Equity securities with a readily determinable fair value21,301 — — 21,301 
Total$4,886,304 $55 $(468,137)$4,418,222 
December 31, 2023
U.S. treasuries$32,459 $— $(341)$32,118 
U.S. agencies14,724 — (194)14,530 
Obligations of states and political subdivisions839,754 25 (98,534)741,245 
Mortgage-backed securities - agency1,620,409 13 (226,793)1,393,629 
Mortgage-backed securities - non-agency1,616,414 363 (87,649)1,529,128 
Commercial mortgage-backed securities - agency76,076 — (11,288)64,788 
Commercial mortgage-backed securities - non-agency526,974 — (12,116)514,858 
Asset-backed securities232,140 — (14,770)217,370 
Corporate bonds120,338 — (2,169)118,169 
Total debt securities5,079,288 401 (453,854)4,625,835 
Equity securities with a readily determinable fair value21,056 — — 21,056 
Total$5,100,344 $401 $(453,854)$4,646,891 

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of March 31, 2024, and December 31, 2023, are summarized in the table below, in thousands:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
March 31, 2024    
Obligations of states and political subdivisions$841,055 $3,158 (30,461)$813,752 
Total$841,055 $3,158 $(30,461)$813,752 
December 31, 2023
Obligations of states and political subdivisions$838,241 $3,622 $(25,464)$816,399 
Total$838,241 $3,622 $(25,464)$816,399 

As of March 31, 2024, and December 31, 2023, HTLF had $25.3 million and $28.0 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, 2024, 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, 2024
Amortized CostEstimated Fair Value
Due in 1 year or less$25,192 $25,066 
Due in 1 to 5 years62,702 61,628 
Due in 5 to 10 years21,452 19,054 
Due after 10 years895,157 786,558 
Total debt securities1,004,503 892,306 
Mortgage and asset-backed securities3,860,500 3,504,615 
Equity securities with a readily determinable fair value 21,301 21,301 
Total investment securities$4,886,304 $4,418,222 

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2024, 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, 2024
Amortized CostEstimated Fair Value
Due in 1 year or less$8,147 $8,149 
Due in 1 to 5 years91,287 90,939 
Due in 5 to 10 years207,209 204,220 
Due after 10 years534,412 510,444 
Total debt securities$841,055 $813,752 

As of March 31, 2024, and December 31, 2023, securities with a carrying value of $2.61 billion and $2.63 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, 2024 and 2023, are summarized as follows, in thousands:
Three Months Ended
March 31,
20242023
Proceeds from sales$— $146,448 
Gross security gains— — 
Gross security losses— 1,104 

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, 2024, and December 31, 2023. 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, 2023, and December 31, 2023, 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, 2024
U.S. treasuries$2,975 $(20)1 $29,247 $(239)4 $32,222 $(259)5 
U.S. agencies— — — 13,892 (192)4 13,892 (192)4 
Obligations of states and political subdivisions1,689 (16)3 721,778 (109,328)148 723,467 (109,344)151 
Mortgage-backed securities - agency— — — 1,358,884 (231,254)166 1,358,884 (231,254)166 
Mortgage-backed securities - non-agency395,105 (22,829)12 880,665 (62,396)35 1,275,770 (85,225)47 
Commercial mortgage-backed securities - agency— — — 64,074 (11,708)17 64,074 (11,708)17 
Commercial mortgage-backed securities - non-agency7,735 (78)1 418,359 (10,102)16 426,094 (10,180)17 
Asset-backed securities132,551 (12,303)4 64,557 (5,265)7 197,108 (17,568)11 
Corporate bonds61,403 (510)1 57,298 (1,897)8 118,701 (2,407)9 
Total temporarily impaired securities$601,458 $(35,756)22 $3,608,754 $(432,381)405 $4,210,212 $(468,137)427 
December 31, 2023
U.S. treasuries$2,985 $(12)1 $26,138 $(329)3 $29,123 $(341)4 
U.S. agencies— — — 14,530 (194)4 14,530 (194)4 
Obligations of states and political subdivisions1,440 (65)1 736,653 (98,469)150 738,093 (98,534)151 
Mortgage-backed securities - agency194 (2)2 1,392,769 (226,791)166 1,392,963 (226,793)168 
Mortgage-backed securities - non-agency415,934 (24,568)12 902,291 (63,081)35 1,318,225 (87,649)47 
Commercial mortgage-backed securities - agency— — — 64,788 (11,288)17 64,788 (11,288)17 
Commercial mortgage-backed securities - non-agency— — — 507,044 (12,116)16 507,044 (12,116)16 
Asset-backed securities148,063 (9,723)4 69,307 (5,047)7 217,370 (14,770)11 
Corporate bonds61,031 (111)1 57,138 (2,058)8 118,169 (2,169)9 
Total temporarily impaired securities$629,647 $(34,481)21 $3,770,658 $(419,373)406 $4,400,305 $(453,854)427 
Securities held to maturityLess than 12 months12 months or longerTotal
Fair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		Count
March 31, 2024
Obligations of states and political subdivisions$51,881 $(1,347)13 $670,921 $(29,114)141 $722,802 $(30,461)154 
Total temporarily impaired securities$51,881 (1,347)13 $670,921 $(29,114)141 $722,802 (30,461)154 
December 31, 2023
Obligations of states and political subdivisions$145,471 $(3,706)23 $569,691 $(21,758)126 $715,162 $(25,464)149 
Total temporarily impaired securities$145,471 $(3,706)23 $569,691 $(21,758)126 $715,162 $(25,464)149 

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, as of March 31, 2024, 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, 2024 and 2023.

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, as of March 31, 2024, 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, 2024 and 2023.
The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of March 31, 2024, and December 31, 2023, which are updated quarterly and used to monitor the credit quality of the securities:
March 31, 2024December 31, 2023
Rating
AAA$88,849 $88,550 
AA, AA+, AA-575,331 583,816 
A+, A, A-150,409 139,658 
BBB20,111 20,133 
Not Rated6,355 6,084 
Total $841,055 $838,241 

Included in other investments were shares of stock in Federal Home Loan Bank (the "FHLB") at an amortized cost of $2.6 million at March 31, 2024, and $25.8 million at December 31, 2023.

HTLF Bank is required by federal law to maintain FHLB stock as a member of the FHLB. 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, 2024, and December 31, 2023, did not consider the investments to be impaired.