Securities (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013, and December 31, 2012, are summarized in the table below, in thousands:

Securities available for sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2013
U.S. government corporations and agencies	$	7,885	$	289	$	—		$	8,174
Mortgage-backed securities	1,049,782		16,230		(6,098		)	1,059,914
Obligations of states and political subdivisions	418,168		19,221		(2,018		)	435,371
Total debt securities	1,475,835		35,740		(8,116		)	1,503,459
Equity securities	20,332		778		—			21,110
Total	$	1,496,167	$	36,518	$	(8,116	)	$	1,524,569
December 31, 2012
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
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

Held-to-maturity Securities

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of March 31, 2013, and December 31, 2012, are summarized in the table below, in thousands:

Securities held to maturity	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2013
Mortgage-backed securities	$	6,994	$	470	$	(80	)	$	7,384
Obligations of states and political subdivisions	48,462		—		—			48,462
Total	$	55,456	$	470	$	(80	)	$	55,846
December 31, 2012
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

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 March 31, 2013, and December 31, 2012. 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 March 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
March 31, 2013
U.S. government corporations and agencies	$	—	$	—		$	—	$	—		$	—	$	—
Mortgage-backed securities	351,727		(5,376		)	19,056		(722		)	370,783		(6,098		)
Obligations of states and political subdivisions	105,855		(2,018		)	—		—			105,855		(2,018		)
Total temporarily impaired securities	$	457,582	$	(7,394	)	$	19,056	$	(722	)	$	476,638	$	(8,116	)
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		)
Total temporarily impaired securities	$	356,862	$	(9,314	)	$	24,489	$	(914	)	$	381,351	$	(10,228	)

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
March 31, 2013
Mortgage-backed securities	$	—	$	—	$	3,254	$	(80	)	$	3,254	$	(80	)
Obligations of states and political subdivisions	—		—		—		—			—		—
Total temporarily impaired securities	$	—	$	—	$	3,254	$	(80	)	$	3,254	$	(80	)
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	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

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

	Three Months Ended
	March 31, 2013		March 31, 2012
Credit loss component, beginning of period	$	981	$	—
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	$	981

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

	Three Months Ended
	March 31, 2013		March 31, 2012
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:

	Three Months Ended
	March 31, 2013			March 31, 2012
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:
Residential mortgage backed securities	—			683
Accretion of non-credit related impairment	(24		)	—
Total changes to AOCI for non-credit related impairment	(24		)	683
Total OTTI losses (accretion) recorded on debt securities, net	$	(24	)	$	1,664