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Securities (Tables)
 9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available for Sale Securities
The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2017, and December 31, 2016, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
September 30, 2017
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
7,435

 
$
14

 
$
(34
)
 
$
7,415

Mortgage-backed securities
1,593,677

 
4,656

 
(32,933
)
 
1,565,400

Obligations of states and political subdivisions
506,867

 
4,307

 
(7,200
)
 
503,974

Total debt securities
2,107,979

 
8,977

 
(40,167
)
 
2,076,789

Equity securities
16,253

 
343

 
—

 
16,596

Total
$
2,124,232

 
$
9,320

 
$
(40,167
)
 
$
2,093,385

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

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
Schedule of Held to Maturity Securities
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2017, and December 31, 2016, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
September 30, 2017
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
256,355

 
$
14,722

 
$
(691
)
 
$
270,386

Total
$
256,355

 
$
14,722

 
$
(691
)
 
$
270,386

December 31, 2016
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
263,662

 
$
12,282

 
$
(1,145
)
 
$
274,799

Total
$
263,662

 
$
12,282

 
$
(1,145
)
 
$
274,799
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of debt securities available for sale at September 30, 2017, 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.
 
September 30, 2017
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
185

 
$
186

Due in 1 to 5 years
40,716

 
41,077

Due in 5 to 10 years
93,240

 
91,514

Due after 10 years
380,161

 
378,612

Total debt securities
514,302

 
511,389

Mortgage-backed securities
1,593,677

 
1,565,400

Equity securities
16,253

 
16,596

Total investment securities
$
2,124,232

 
$
2,093,385


The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2017, 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.
 
September 30, 2017
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
1,510

 
$
1,533

Due in 1 to 5 years
21,157

 
22,090

Due in 5 to 10 years
105,030

 
109,119

Due after 10 years
128,658

 
137,644

Total investment securities
$
256,355

 
$
270,386
Schedule of Realized Gross Gains (Losses)
Gross gains and losses realized related to the sales of securities available for sale for the three- and nine-month periods ended September 30, 2017 and 2016, are summarized as follows, in thousands:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
Proceeds from sales
$
503,083

 
$
146,242

 
$
1,127,091

 
$
768,617

Gross security gains
2,088

 
1,763

 
8,585

 
11,416

Gross security losses
409

 
177

 
3,023

 
1,332
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 September 30, 2017, and December 31, 2016. 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 months or more. The reference point for determining how long an investment was in an unrealized loss position was September 30, 2016, and December 31, 2015, respectively. Securities for which Heartland has taken credit-related other-than-temporary impairment ("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
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
6,901

 
$
(34
)
 
$
—

 
$
—

 
$
6,901

 
$
(34
)
Mortgage-backed securities
761,235

 
(11,558
)
 
431,669

 
(21,375
)
 
1,192,904

 
(32,933
)
Obligations of states and political subdivisions
149,931

 
(1,820
)
 
153,068

 
(5,380
)
 
302,999

 
(7,200
)
Total debt securities
918,067

 
(13,412
)
 
584,737

 
(26,755
)
 
1,502,804

 
(40,167
)
Equity securities
—

 
—

 
—

 
—

 
—

 
—

Total temporarily impaired securities
$
918,067

 
$
(13,412
)
 
$
584,737

 
$
(26,755
)
 
$
1,502,804

 
$
(40,167
)
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
)
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
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
6,278

 
$
(43
)
 
$
8,894

 
$
(648
)
 
$
15,172

 
$
(691
)
Total temporarily impaired securities
$
6,278

 
$
(43
)
 
$
8,894

 
$
(648
)
 
$
15,172

 
$
(691
)
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
)
OTTI Write-downs Included in Earnings and AOCI
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
September 30,
 
Nine Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
Recorded as part of gross realized losses:
 
 
 
 
 
 
 
Credit related OTTI
$
—

 
$
—

 
$
—

 
$
—

Intent to sell OTTI
—

 
—

 
—

 
—

Total recorded as part of gross realized losses
—

 
—

 
—

 
—

Recorded directly to AOCI for non-credit related impairment:
 
 
 
 
 
 
 
  Residential mortgage backed securities
—

 
—

 
—

 
—

  Reduction of non-credit related impairment related to security sales
—

 
—

 
—

 
(120
)
  Accretion of non-credit related impairment
—

 
—

 
—

 
(7
)
Total changes to AOCI for non-credit related impairment
—

 
—

 
—

 
(127
)
Total OTTI losses (accretion) recorded on debt securities, net
$
—

 
$
—

 
$
—

 
$
(127
)