Securities (Tables)

12 Months Ended

Dec. 31, 2012

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The amortized cost, gross unrealized gains and losses and estimated fair values of securities available for sale as of December 31, 2012, and December 31, 2011, are summarized in the table below, in thousands:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2012
Securities available for sale:
U.S. government corporations and agencies	$	21,002	$	443	$	(1	)	$	21,444
Mortgage-backed securities	1,027,234		19,002		(10,035		)	1,036,201
Obligations of states and political subdivisions	403,077		23,560		(192		)	426,445
Corporate debt securities	—		—		—			—
Total debt securities	1,451,313		43,005		(10,228		)	1,484,090
Equity securities	21,252		733		—			21,985
Total	$	1,472,565	$	43,738	$	(10,228	)	$	1,506,075
December 31, 2011
Securities available for sale:
U.S. government corporations and agencies	$	104,719	$	2,428	$	—		$	107,147
Mortgage-backed securities	815,408		14,643		(4,997		)	825,054
Obligations of states and political subdivisions	272,660		14,983		(973		)	286,670
Corporate debt securities	26,284		29		(1,060		)	25,253
Total debt securities	1,219,071		32,083		(7,030		)	1,244,124
Equity securities	23,389		486		—			23,875
Total	$	1,242,460	$	32,569	$	(7,030	)	$	1,267,999

The amortized cost and estimated fair value of debt securities available for sale at December 31, 2012, 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.

	Amortized Cost		Estimated Fair Value
Securities available for sale:
Due in 1 year or less	$	4,266	$	4,320
Due in 1 to 5 years	44,947		46,912
Due in 5 to 10 years	55,943		59,506
Due after 10 years	318,923		337,151
Total debt securities	424,079		447,889
Mortgage-backed securities	1,027,234		1,036,201
Equity securities	21,252		21,985
Total investment securities	$	1,472,565	$	1,506,075

Held-to-maturity Securities

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2012, 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.

	Amortized Cost		Estimated Fair Value
Securities held to maturity:
Due in 1 year or less	$	—	$	—
Due in 1 to 5 years	510		510
Due in 5 to 10 years	11,638		11,638
Due after 10 years	36,314		36,314
Total debt securities	48,462		48,462
Mortgage-backed securities	7,040		7,520
Total investment securities	$	55,502	$	55,982

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 2012, and December 31, 2011, are summarized in the table below, in thousands:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2012
Securities held to maturity:
Mortgage-backed securities	$	7,040	$	492	$	(12	)	$	7,520
Obligations of states and political subdivisions	48,462		—		—			48,462
Total	$	55,502	$	492	$	(12	)	$	55,982
December 31, 2011
Securities held to maturity:
Mortgage-backed securities	$	9,131	$	40	$	(1,532	)	$	7,639
Obligations of states and political subdivisions	49,129		730		(12		)	49,847
Total	$	58,260	$	770	$	(1,544	)	$	57,486

Schedule of Realized Gain (Loss)

Gross gains and losses realized related to sales of securities for the years ended December 31, 2012, 2011, and 2010 are summarized as follows, in thousands:

	2012		2011		2010
Securities sold:
Proceeds from sales	$	580,775	$	493,167	$	399,901
Gross security gains	15,387		15,302		8,575
Gross security losses	1,389		2,198		1,741

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following tables summarize, 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 Heartland's securities portfolio as of December 31, 2012, and December 31, 2011. 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 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2012, and December 31, 2011, respectively. Securities for which Heartland has taken credit-related OTTI write-downs are categorized as being "less than 12 months" or "12 months or longer" in a continuous loss position based on the point in time that the fair value declined to below the cost basis and not the period of time since the credit-related OTTI write-down.

Securities available for sale
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2012
U.S. government corporations and agencies	$	1,517	$	(1	)	$	—	$	—		$	1,517	$	(1	)
Mortgage-backed securities	332,842		(9,121		)	24,489		(914		)	357,331		(10,035		)
Obligations of states and political subdivisions	22,503		(192		)	—		—			22,503		(192		)
Corporate debt securities	—		—			—		—			—		—
Total debt securities	356,862		(9,314		)	24,489		(914		)	381,351		(10,228		)
Equity securities	—		—			—		—			—		—
Total temporarily impaired securities	$	356,862	$	(9,314	)	$	24,489	$	(914	)	$	381,351	$	(10,228	)
December 31, 2011
U.S. government corporations and agencies	$	—	$	—		$	—	$	—		$	—	$	—
Mortgage-backed securities	133,538		(1,794		)	71,231		(3,203		)	204,769		(4,997		)
Obligations of states and political subdivisions	13,139		(284		)	4,010		(689		)	17,149		(973		)
Corporate debt securities	5,147		(243		)	15,346		(817		)	20,493		(1,060		)
Total debt securities	151,824		(2,321		)	90,587		(4,709		)	242,411		(7,030		)
Equity securities	—		—			—		—			—		—
Total temporarily impaired securities	$	151,824	$	(2,321	)	$	90,587	$	(4,709	)	$	242,411	$	(7,030	)

Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value

Securities held to maturity
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2012
Mortgage-backed securities	$	3,296	$	—		$	—	$	(12	)	$	3,296	$	(12	)
Obligations of states and political subdivisions	—		—			—		—			—		—
Total temporarily impaired securities	$	3,296	$	—		$	—	$	(12	)	$	3,296	$	(12	)
December 31, 2011
Mortgage-backed securities	$	2,350	$	(54	)	$	3,515	$	(1,478	)	$	5,865	$	(1,532	)
Obligations of states and political subdivisions	—		—			500		(12		)	500		(12		)
Total temporarily impaired securities	$	2,350	$	(54	)	$	4,015	$	(1,490	)	$	6,365	$	(1,544	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table shows the detail of total OTTI write-downs included in earnings, in thousands:

	For the Years Ended December 31,
	2012		2011		2010
OTTI write-downs included in earnings:
Available for sale debt securities:
Mortgage-backed securities	$	184	$	—	$	—
Held to maturity debt securities:
Mortgage-backed securities	797		—		—
Total debt security OTTI write-downs included in earnings	$	981	$	—	$	—

The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income (AOCI) for the same securities, in thousands:

	For the Years Ended December 31,
	2012			2011		2010
OTTI on debt securities
Recorded as part of gross realized losses:
Credit related OTTI	$	981		$	—	$	—
Intent to sell OTTI	—			—		—
Total recorded as part of gross realized losses	981			—		—
Recorded directly to AOCI for non-credit related impairment:
Mortgage-backed securities	683			—		—
Accretion of non-credit related impairment	(71		)	—		—
Total recorded directly to AOCI for non-credit related impairment	612			—		—
Total OTTI losses recorded on debt securities	$	1,593		$	—	$	—

Changes in the credit loss component of the credit impaired debt securities that Heartland does not intend to sell were, in thousands:

	For the Years Ended December 31,
	2012		2011		2010
Credit loss component, beginning of period	$	—	$	—	$	—
Additions:
Initial credit impairments	981		—		—
Subsequent credit impairments	—		—		—
Total additions	981		—		—
Reductions:
For securities sold	—		—		—
Due to change in intent to sell or requirement to sell	—		—		—
For recoveries of previous credit impairments	—		—		—
Total reductions	—		—		—
Credit loss component, end of period	$	981	$	—	$	—