Securities (Tables)
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12 Months Ended |
Dec. 31, 2012
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Investments, Debt and Equity Securities [Abstract] |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 | ) |
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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 | ) |
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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 |
| | $ | — |
| | $ | — |
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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 |
| | $ | — |
| | $ | — |
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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 |
| | $ | — |
| | $ | — |
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