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Securities (Tables)
 12 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Schedule of Securities Available for Sale
The amortized cost and estimated fair value of securities available for sale at December 31, 2016, 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.
 
December 31, 2016
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
675

 
$
676

Due in 1 to 5 years
39,717

 
39,474

Due in 5 to 10 years
106,600

 
103,401

Due after 10 years
410,744

 
397,293

    Total debt securities
557,736

 
540,844

Mortgage-backed securities
1,321,760

 
1,290,500

Equity securities
14,451

 
14,520

Total investment securities
$
1,893,947

 
$
1,845,864


The amortized cost, gross unrealized gains and losses and estimated fair values of securities available for sale as of December 31, 2016, and December 31, 2015, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2016
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
4,716

 
$
16

 
$
(32
)
 
$
4,700

Mortgage-backed securities
1,321,760

 
7,026

 
(38,286
)
 
1,290,500

Obligations of states and political subdivisions
553,020

 
2,436

 
(19,312
)
 
536,144

Corporate debt securities
—

 
—

 
—

 
—

Total debt securities
1,879,496

 
9,478

 
(57,630
)
 
1,831,344

Equity securities
14,451

 
69

 
—

 
14,520

Total
$
1,893,947

 
$
9,547

 
$
(57,630
)
 
$
1,845,864

December 31, 2015
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
25,847

 
$
22

 
$
(103
)
 
$
25,766

Mortgage-backed securities
1,254,452

 
9,134

 
(20,884
)
 
1,242,702

Obligations of states and political subdivisions
290,522

 
6,547

 
(1,087
)
 
295,982

Corporate debt securities
740

 
106

 
—

 
846

Total debt securities
1,571,561

 
15,809

 
(22,074
)
 
1,565,296

Equity securities
13,142

 
40

 
(44
)
 
13,138

Total
$
1,584,703

 
$
15,849

 
$
(22,118
)
 
$
1,578,434
Schedule of Securities Held to Maturity
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 2016, and December 31, 2015, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2016
 
 
 
 
 
 
 
Mortgage-backed securities
$
—

 
$
—

 
$
—

 
$
—

Obligations of states and political subdivisions
263,662

 
12,282

 
(1,145
)
 
274,799

Total
$
263,662

 
$
12,282

 
$
(1,145
)
 
$
274,799

December 31, 2015
 
 
 
 
 
 
 
Mortgage-backed securities
$
4,369

 
$
306

 
$
—

 
$
4,675

Obligations of states and political subdivisions
274,748

 
15,595

 
(505
)
 
289,838

Total
$
279,117

 
$
15,901

 
$
(505
)
 
$
294,513

The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2016, 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.
 
December 31, 2016
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
3,556

 
$
3,609

Due in 1 to 5 years
14,843

 
15,621

Due in 5 to 10 years
90,387

 
93,331

Due after 10 years
154,876

 
162,238

Total investment securities
$
263,662

 
$
274,799
Schedule of Realized Gross Gains and Losses on Sales of Securities Available for Sale
Gross gains and losses realized related to sales of securities available for sale for the years ended December 31, 2016, 2015 and 2014 are summarized as follows, in thousands:
 
2016
 
2015
 
2014
Available for Sale Securities sold:
 
 
 
 
 
Proceeds from sales
$
909,942

 
$
1,115,359

 
$
791,767

Gross security gains
13,200

 
15,205

 
5,871

Gross security losses
1,562

 
2,022

 
2,203
Summary of Unrealized Losses on Securities Available for Sale
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, 2016, and December 31, 2015. 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, 2016, and December 31, 2015, 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, 2016
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
4,185

 
$
(32
)
 
$
—

 
$
—

 
$
4,185

 
$
(32
)
Mortgage-backed securities
744,202

 
(23,527
)
 
272,449

 
(14,759
)
 
1,016,651

 
(38,286
)
Obligations of states and political subdivisions
414,151

 
(19,309
)
 
251

 
(3
)
 
414,402

 
(19,312
)
Total debt securities
1,162,538

 
(42,868
)
 
272,700

 
(14,762
)
 
1,435,238

 
(57,630
)
Equity securities
—

 
—

 
—

 
—

 
—

 
—

Total temporarily impaired securities
$
1,162,538

 
$
(42,868
)
 
$
272,700

 
$
(14,762
)
 
$
1,435,238

 
$
(57,630
)
December 31, 2015
U.S. government corporations and agencies
$
22,359

 
$
(103
)
 
$
—

 
$
—

 
$
22,359

 
$
(103
)
Mortgage-backed securities
724,330

 
(15,523
)
 
139,562

 
(5,361
)
 
863,892

 
(20,884
)
Obligations of states and political subdivisions
68,482

 
(896
)
 
7,460

 
(191
)
 
75,942

 
(1,087
)
Total debt securities
815,171

 
(16,522
)
 
147,022

 
(5,552
)
 
962,193

 
(22,074
)
Equity securities
6,566

 
(44
)
 
—

 
—

 
6,566

 
(44
)
Total temporarily impaired securities
$
821,737

 
$
(16,566
)
 
$
147,022

 
$
(5,552
)
 
$
968,759

 
$
(22,118
)
Schedule of Unrealized Losses on Securities Held to Maturity
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, 2016
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
31,479

 
(884
)
 
2,017

 
(261
)
 
33,496

 
(1,145
)
Total temporarily impaired securities
$
31,479

 
$
(884
)
 
$
2,017

 
$
(261
)
 
$
33,496

 
$
(1,145
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
3,646

 
(12
)
 
18,033

 
(493
)
 
21,679

 
(505
)
Total temporarily impaired securities
$
3,646

 
$
(12
)
 
$
18,033

 
$
(493
)
 
$
21,679

 
$
(505
)
OTTI Write-downs on Debt Securities Included in Earnings and AOCI
Changes in the credit loss component of the credit impaired debt securities for the years ended December 31, 2016. 2015, and 2014, were as follows, in thousands:
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Credit loss component, beginning of period
$
1,750

 
$
981

 
$
981

Additions:
 
 
 
 
 
Initial credit impairments
—

 
—

 
—

Subsequent credit impairments
—

 
769

 
—

Total additions
—


769


—

Reductions:
 
 
 
 
 
For securities sold
1,750

 
—

 
—

Total reductions
1,750


—


—

Credit loss component, end of period
$
—


$
1,750


$
981

The following table shows the detail of total OTTI write-downs included in earnings, in thousands:
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
OTTI write-downs included in earnings:
 
 
 
 
 
Available for sale debt securities:
 
 
 
 
 
  Mortgage-backed securities
$
—

 
$
53

 
$
—

Held to maturity debt securities:
 
 
 
 
 
  Mortgage-backed securities
—

 
716

 
—

Total debt security OTTI write-downs included in earnings
$
—


$
769


$
—


The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in accumulated other comprehensive income ("AOCI") for the same securities, in thousands:
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
OTTI on debt securities
 
 
 
 
 
Recorded as part of gross realized losses:
 
 
 
 
 
Credit related OTTI
$
—

 
$
769

 
$
—

Intent to sell OTTI
—

 
—

 
—

Total recorded as part of gross realized losses
—


769


—

Recorded directly to AOCI for non-credit related impairment:
 
 
 
 
 
Reclassification of non-credit related impairment
—

 
(200
)
 
—

Reduction of non-credit related impairment related to security sales
(120
)
 
—

 
—

  Accretion of non-credit related impairment
(7
)
 
(95
)
 
(95
)
Total changes to AOCI for non-credit related impairment
(127
)

(295
)

(95
)
Total OTTI losses (accretion) recorded on debt securities
$
(127
)

$
474


$
(95
)