XML 68 R23.htm IDEA: XBRL DOCUMENT v2.4.1.9
Loans and Leases (Tables)
 3 Months Ended
Mar. 31, 2015
Receivables [Abstract]  
Loans and Leases
Loans and leases as of March 31, 2015, and December 31, 2014, were as follows, in thousands:
 
March 31, 2015
 
December 31, 2014
Loans and leases receivable held to maturity:
 
 
 
Commercial
$
1,134,614

 
$
1,036,080

Commercial real estate
1,932,701

 
1,707,060

Agricultural and agricultural real estate
411,732

 
423,827

Residential real estate
413,938

 
380,341

Consumer
351,981

 
330,555

Gross loans and leases receivable held to maturity
4,244,966

 
3,877,863

Unearned discount
(85
)
 
(90
)
Deferred loan fees
(1,192
)
 
(1,028
)
Total net loans and leases receivable held to maturity
4,243,689

 
3,876,745

Loans covered under loss share agreements:
 
 
 
Commercial and commercial real estate
—

 
54

Agricultural and agricultural real estate
—

 
—

Residential real estate
—

 
1,204

Consumer
—

 
—

Total loans covered under loss share agreements
—

 
1,258

Allowance for loan and lease losses
(41,854
)
 
(41,449
)
Loans and leases receivable, net
$
4,201,835

 
$
3,836,554
Allowance for Loan and Lease Losses, Based on Impairment Methodology
The following table shows the balance in the allowance for loan and lease losses at March 31, 2015, and December 31, 2014, and the related loan balances, disaggregated on the basis of impairment methodology, in thousands. Loans evaluated under ASC 310-10-35 include loans on nonaccrual status and troubled debt restructurings, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics. All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no significant changes to the accounting for the allowance for loan and lease losses policy during 2015.
 
Allowance For Loan and Lease Losses
 
Gross Loans and Leases Receivable Held to Maturity
 
Ending Balance
Under ASC
310-10-35
 
Ending Balance
Under ASC
450-20
 
Total
 
Ending Balance Evaluated for Impairment
Under ASC
310-10-35
 
Ending Balance Evaluated for Impairment
Under ASC
450-20
 
 Total
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
205

 
$
11,483

 
$
11,688

 
$
3,566

 
$
1,131,048

 
$
1,134,614

Commercial real estate
466

 
16,169

 
16,635

 
35,872

 
1,896,829

 
1,932,701

Agricultural and agricultural real estate
49

 
3,167

 
3,216

 
4,989

 
406,743

 
411,732

Residential real estate
491

 
3,254

 
3,745

 
10,401

 
403,537

 
413,938

Consumer
723

 
5,847

 
6,570

 
4,713

 
347,268

 
351,981

Total
$
1,934

 
$
39,920

 
$
41,854

 
$
59,541

 
$
4,185,425

 
$
4,244,966

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
754

 
$
11,155

 
$
11,909

 
$
4,526

 
$
1,031,554

 
$
1,036,080

Commercial real estate
636

 
15,262

 
15,898

 
35,771

 
1,671,289

 
1,707,060

Agricultural and agricultural real estate
52

 
3,243

 
3,295

 
5,049

 
418,778

 
423,827

Residential real estate
442

 
3,299

 
3,741

 
10,235

 
370,106

 
380,341

Consumer
813

 
5,793

 
6,606

 
6,143

 
324,412

 
330,555

Total
$
2,697

 
$
38,752

 
$
41,449

 
$
61,724

 
$
3,816,139

 
$
3,877,863
Schedule of Financing Receivables, Non Accrual Status
The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans not covered under loss share agreements at March 31, 2015, and December 31, 2014, in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at March 31, 2015, and December 31, 2014.
 
March 31, 2015
 
December 31, 2014
Nonaccrual loans
$
26,501

 
$
24,205

Nonaccrual troubled debt restructured loans
522

 
865

Total nonaccrual loans
$
27,023

 
$
25,070

Accruing loans past due 90 days or more
$
9

 
$
—

Performing troubled debt restructured loans
$
10,904

 
$
12,133
Troubled Debt Restructurings on Financing Receivables
The following table provides information on troubled debt restructured loans that were modified during the three months ended March 31, 2015, and March 31, 2014, dollars in thousands:
 
Three Months Ended
March 31,
 
2015
 
2014
 
Number
of Loans
 
Pre-
Modification
Recorded
Investment
 
Post-
Modification
Recorded
Investment
 
Number
of Loans
 
Pre-
Modification
Recorded
Investment
 
Post-
Modification
Recorded
Investment
Commercial
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Commercial real estate
1

 
3,992

 
3,992

 
1

 
368

 
368

Total commercial and commercial real estate
1

 
3,992

 
3,992

 
1

 
368

 
368

Agricultural and agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

Residential real estate
—

 
—

 
—

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
—

Total
1

 
$
3,992

 
$
3,992

 
1

 
$
368

 
$
368
Financing Receivable Credit Quality Indicators
The following table presents loans and leases not covered by loss share agreements by credit quality indicator at March 31, 2015, and December 31, 2014, in thousands:
 
Pass
 
Nonpass
 
Total
March 31, 2015
 
 
 
 
 
Commercial
$
1,025,159

 
$
109,455

 
$
1,134,614

Commercial real estate
1,774,036

 
158,665

 
1,932,701

  Total commercial and commercial real estate
2,799,195

 
268,120

 
3,067,315

Agricultural and agricultural real estate
389,296

 
22,436

 
411,732

Residential real estate
394,534

 
19,404

 
413,938

Consumer
343,674

 
8,307

 
351,981

  Total gross loans and leases receivable held to maturity
$
3,926,699

 
$
318,267

 
$
4,244,966

December 31, 2014
 
 
 
 
 
Commercial
$
939,717

 
$
96,363

 
$
1,036,080

Commercial real estate
1,567,711

 
139,349

 
1,707,060

  Total commercial and commercial real estate
2,507,428

 
235,712

 
2,743,140

Agricultural and agricultural real estate
402,883

 
20,944

 
423,827

Residential real estate
361,325

 
19,016

 
380,341

Consumer
321,114

 
9,441

 
330,555

  Total gross loans and leases receivable held to maturity
$
3,592,750

 
$
285,113

 
$
3,877,863
Past Due Financing Receivables
The following table sets forth information regarding Heartland's accruing and nonaccrual loans and leases not covered by loss share agreements at March 31, 2015, and December 31, 2014, in thousands:
 
Accruing Loans and Leases
 
 
 
 
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More Past Due
 
Total
Past Due
 
Current
 
Nonaccrual
 
Total Loans
and Leases
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
1,485

 
$
729

 
$
—

 
$
2,214

 
$
1,131,303

 
$
1,097

 
$
1,134,614

Commercial real estate
9,336

 
1,177

 
—

 
10,513

 
1,907,619

 
14,569

 
1,932,701

Total commercial and commercial real estate
10,821

 
1,906

 
—

 
12,727

 
3,038,922

 
15,666

 
3,067,315

Agricultural and agricultural real estate
569

 
129

 
9

 
707

 
409,658

 
1,367

 
411,732

Residential real estate
1,483

 
139

 
—

 
1,622

 
404,861

 
7,455

 
413,938

Consumer
2,246

 
502

 
—

 
2,748

 
346,698

 
2,535

 
351,981

Total gross loans and leases receivable held to maturity
$
15,119

 
$
2,676

 
$
9

 
$
17,804

 
$
4,200,139

 
$
27,023

 
$
4,244,966

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
980

 
$
48

 
$
—

 
$
1,028

 
$
1,032,707

 
$
2,345

 
$
1,036,080

Commercial real estate
1,788

 
111

 
—

 
1,899

 
1,693,554

 
11,607

 
1,707,060

Total commercial and commercial real estate
2,768

 
159

 
—

 
2,927

 
2,726,261

 
13,952

 
2,743,140

Agricultural and agricultural real estate
119

 
50

 
—

 
169

 
422,219

 
1,439

 
423,827

Residential real estate
1,037

 
445

 
—

 
1,482

 
371,982

 
6,877

 
380,341

Consumer
2,382

 
1,366

 
—

 
3,748

 
324,005

 
2,802

 
330,555

Total gross loans and leases receivable held to maturity
$
6,306

 
$
2,020

 
$
—

 
$
8,326

 
$
3,844,467

 
$
25,070

 
$
3,877,863
Allowance for Credit Losses on Financing Receivables
The following tables present, for impaired loans not covered by loss share agreements and by category of loan, the unpaid contractual balance at March 31, 2015, and December 31, 2014; the outstanding loan balance recorded on the consolidated balance sheets at March 31, 2015, and December 31, 2014; any related allowance recorded for those loans as of March 31, 2015, and December 31, 2014; the average outstanding loan balance recorded on the consolidated balance sheets during the three months ended March 31, 2015, and year ended December 31, 2014; and the interest income recognized on the impaired loans during the three months ended March 31, 2015, and year ended December 31, 2014, in thousands:
 
Unpaid
Contractual
Balance
 
Loan
Balance
 
Related
Allowance
Recorded
 
Year-to-
Date
Avg.
Loan
Balance
 
Year-to-
Date
Interest
Income
Recognized
March 31, 2015
 
 
 
 
 
 
 
 
 
Impaired loans with a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
307

 
$
273

 
$
205

 
$
520

 
$
3

Commercial real estate
1,973

 
1,484

 
466

 
3,279

 
6

Total commercial and commercial real estate
2,280

 
1,757

 
671

 
3,799

 
9

Agricultural and agricultural real estate
3,276

 
3,276

 
49

 
3,291

 
41

Residential real estate
2,749

 
2,581

 
491

 
2,674

 
4

Consumer
2,483

 
2,483

 
723

 
2,620

 
5

Total loans held to maturity
$
10,788

 
$
10,097

 
$
1,934

 
$
12,384

 
$
59

Impaired loans without a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
4,022

 
$
3,293

 
$
—

 
$
3,584

 
$
33

Commercial real estate
42,421

 
34,388

 
—

 
23,997

 
292

Total commercial and commercial real estate
46,443

 
37,681

 
—

 
27,581

 
325

Agricultural and agricultural real estate
3,692

 
1,713

 
—

 
1,588

 
3

Residential real estate
7,861

 
7,820

 
—

 
7,726

 
58

Consumer
2,237

 
2,230

 
—

 
3,011

 
11

Total loans held to maturity
$
60,233

 
$
49,444

 
$
—

 
$
39,906

 
$
397

Total impaired loans held to maturity:
 
 
 
 
 
 
 
 
 
Commercial
$
4,329

 
$
3,566

 
$
205

 
$
4,104

 
$
36

Commercial real estate
44,394

 
35,872

 
466

 
27,276

 
298

Total commercial and commercial real estate
48,723

 
39,438

 
671

 
31,380

 
334

Agricultural and agricultural real estate
6,968

 
4,989

 
49

 
4,879

 
44

Residential real estate
10,610

 
10,401

 
491

 
10,400

 
62

Consumer
4,720

 
4,713

 
723

 
5,631

 
16

Total impaired loans held to maturity
$
71,021

 
$
59,541

 
$
1,934

 
$
52,290

 
$
456


 
Unpaid
Contractual
Balance
 
Loan
Balance
 
Related
Allowance
Recorded
 
Year-to-
Date
Avg.
Loan
Balance
 
Year-to-
Date
Interest
Income
Recognized
December 31, 2014
 
 
 
 
 
 
 
 
 
Impaired loans with a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
780

 
$
780

 
$
754

 
$
5,594

 
$
19

Commercial real estate
7,356

 
7,322

 
636

 
5,931

 
303

Total commercial and commercial real estate
8,136

 
8,102

 
1,390

 
11,525

 
322

Agricultural and agricultural real estate
3,317

 
3,317

 
52

 
3,966

 
104

Residential real estate
2,412

 
2,244

 
442

 
3,398

 
12

Consumer
2,799

 
2,799

 
813

 
4,053

 
19

Total loans held to maturity
$
16,664

 
$
16,462

 
$
2,697

 
$
22,942

 
$
457

Impaired loans without a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
4,913

 
$
3,746

 
$
—

 
$
3,499

 
$
101

Commercial real estate
32,708

 
28,449

 
—

 
24,522

 
1,172

Total commercial and commercial real estate
37,621

 
32,195

 
—

 
28,021

 
1,273

Agricultural and agricultural real estate
3,961

 
1,732

 
—

 
3,308

 
13

Residential real estate
8,200

 
7,991

 
—

 
6,267

 
110

Consumer
3,350

 
3,344

 
—

 
1,870

 
127

Total loans held to maturity
$
53,132

 
$
45,262

 
$
—

 
$
39,466

 
$
1,523

Total impaired loans held to maturity:
 
 
 
 
 
 
 
 
 
Commercial
$
5,693

 
$
4,526

 
$
754

 
$
9,093

 
$
120

Commercial real estate
40,064

 
35,771

 
636

 
30,453

 
1,475

Total commercial and commercial real estate
45,757

 
40,297

 
1,390

 
39,546

 
1,595

Agricultural and agricultural real estate
7,278

 
5,049

 
52

 
7,274

 
117

Residential real estate
10,612

 
10,235

 
442

 
9,665

 
122

Consumer
6,149

 
6,143

 
813

 
5,923

 
146

Total impaired loans held to maturity
$
69,796

 
$
61,724

 
$
2,697

 
$
62,408

 
$
1,980
Impaired Financing Receivables
The carrying amount of the loans acquired with the acquisition of Community Bank & Trust at March 31, 2015 consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands:
 
March 31, 2015
 
Impaired
Purchased
Loans
 
Non Impaired
Purchased
Loans
 
Total
Purchased
Loans
Commercial
$
—

 
$
123,442

 
$
123,442

Commercial real estate
8,055

 
191,297

 
199,352

Agricultural and agricultural real estate
—

 
3,124

 
3,124

Residential real estate
—

 
24,299

 
24,299

Consumer loans
—

 
21,125

 
21,125

Total Loans
$
8,055

 
$
363,287

 
$
371,342