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Loans (Tables)
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Schedule of Loans
Loans as of March 31, 2018, and December 31, 2017, were as follows, in thousands:
 
March 31, 2018
 
December 31, 2017
Loans receivable held to maturity:
 
 
 
Commercial
$
1,806,683

 
$
1,646,606

Commercial real estate
3,323,094

 
3,163,269

Agricultural and agricultural real estate
518,386

 
511,588

Residential real estate
624,725

 
624,279

Consumer
474,929

 
447,484

Gross loans receivable held to maturity
6,747,817

 
6,393,226

Unearned discount
(1,620
)
 
(556
)
Deferred loan fees
(182
)
 
(1,206
)
Total net loans receivable held to maturity
6,746,015

 
6,391,464

Allowance for loan losses
(58,656
)
 
(55,686
)
Loans receivable, net
$
6,687,359

 
$
6,335,778
Allowance for Loan and Lease Losses, Based on Impairment Methodology
The following table shows the balance in the allowance for loan losses at March 31, 2018, and December 31, 2017, 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 losses during 2018.
 
Allowance For Loan Losses
 
Gross Loans 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, 2018
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
2,425

 
$
16,970

 
$
19,395

 
$
9,005

 
$
1,797,678

 
$
1,806,683

Commercial real estate
736

 
22,733

 
23,469

 
22,920

 
3,300,174

 
3,323,094

Agricultural and agricultural real estate
787

 
3,929

 
4,716

 
16,896

 
501,490

 
518,386

Residential real estate
386

 
1,755

 
2,141

 
28,324

 
596,401

 
624,725

Consumer
1,137

 
7,798

 
8,935

 
6,427

 
468,502

 
474,929

Total
$
5,471

 
$
53,185

 
$
58,656

 
$
83,572

 
$
6,664,245

 
$
6,747,817

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
1,613

 
$
16,485

 
$
18,098

 
$
7,415

 
$
1,639,191

 
$
1,646,606

Commercial real estate
766

 
21,184

 
21,950

 
23,705

 
3,139,564

 
3,163,269

Agricultural and agricultural real estate
546

 
3,712

 
4,258

 
13,304

 
498,284

 
511,588

Residential real estate
430

 
1,794

 
2,224

 
27,141

 
597,138

 
624,279

Consumer
1,400

 
7,756

 
9,156

 
6,903

 
440,581

 
447,484

Total
$
4,755

 
$
50,931

 
$
55,686

 
$
78,468

 
$
6,314,758

 
$
6,393,226
Schedule of Financing Receivables, Non Accrual Status
The following table presents nonaccrual loans, accruing loans past due 90 days or more and performing troubled debt restructured loans at March 31, 2018, and December 31, 2017, in thousands:
 
March 31, 2018
 
December 31, 2017
Nonaccrual loans
$
60,644

 
$
58,272

Nonaccrual troubled debt restructured loans
4,162

 
4,309

Total nonaccrual loans
$
64,806

 
$
62,581

Accruing loans past due 90 days or more
$
22

 
$
830

Performing troubled debt restructured loans
$
3,206

 
$
6,617
Troubled Debt Restructuring on Loans Modified
The following tables provide information on troubled debt restructured loans that were modified during the three-month periods ended March 31, 2018, and March 31, 2017, dollars in thousands:
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
2018
 
2017
 
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
—

 
—

 
—

 
—

 
—

 
—

Total commercial and commercial real estate
—

 
—

 
—

 
—

 
—

 
—

Agricultural and agricultural real estate
—

 
—

 
—

 
—

 
—

 
—

Residential real estate
5

 
877

 
752

 
3

 
348

 
348

Consumer
—

 
—

 
—

 
—

 
—

 
—

Total
5

 
$
877

 
$
752

 
3

 
$
348

 
$
348

The following table shows troubled debt restructured loans for which there was a payment default during the three month periods ended March 31, 2018, and March 31, 2017, that had been modified during the twelve-month period prior to default, in thousands:
 
 
 
 
 
 
 
 
 
With Payment Defaults During the Following Periods
 
Three Months Ended
March 31,
 
2018
 
2017
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
Commercial
—

 
$
—


—


$
—

Commercial real estate
—

 
—


—


—

  Total commercial and commercial real estate
—

 
—

 
—

 
—

Agricultural and agricultural real estate
—

 
—


—


—

Residential real estate
3

 
519


—


—

Consumer
—

 
—


—


—

  Total
3

 
$
519

 
—

 
$
—
Financing Receivable Credit Quality Indicators
The following table presents loans by credit quality indicator at March 31, 2018, and December 31, 2017, in thousands:
 
Pass
 
Nonpass
 
Total
March 31, 2018
 
 
 
 
 
Commercial
$
1,677,338

 
$
129,345

 
$
1,806,683

Commercial real estate
3,146,622

 
176,472

 
3,323,094

  Total commercial and commercial real estate
4,823,960

 
305,817

 
5,129,777

Agricultural and agricultural real estate
442,484

 
75,902

 
518,386

Residential real estate
585,886

 
38,839

 
624,725

Consumer
461,786

 
13,143

 
474,929

  Total gross loans receivable held to maturity
$
6,314,116

 
$
433,701

 
$
6,747,817

December 31, 2017
 
 
 
 
 
Commercial
$
1,552,783

 
$
93,823

 
$
1,646,606

Commercial real estate
2,985,501

 
177,768

 
3,163,269

  Total commercial and commercial real estate
4,538,284

 
271,591

 
4,809,875

Agricultural and agricultural real estate
451,539

 
60,049

 
511,588

Residential real estate
586,623

 
37,656

 
624,279

Consumer
432,936

 
14,548

 
447,484

  Total gross loans receivable held to maturity
$
6,009,382

 
$
383,844

 
$
6,393,226
Past Due Financing Receivables
The following table sets forth information regarding Heartland's accruing and nonaccrual loans at March 31, 2018, and December 31, 2017, in thousands:
 
Accruing Loans
 
 
 
 
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
90 Days or
More
Past Due
 
Total
Past Due
 
Current
 
Nonaccrual
 
Total Loans
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
2,906

 
$
1,883

 
$
—

 
$
4,789

 
$
1,793,565

 
$
8,329

 
$
1,806,683

Commercial real estate
403

 
740

 
—

 
1,143

 
3,305,043

 
16,908

 
3,323,094

Total commercial and commercial real estate
3,309

 
2,623

 
—

 
5,932

 
5,098,608

 
25,237

 
5,129,777

Agricultural and agricultural real estate
1,147

 
69

 
22

 
1,238

 
500,320

 
16,828

 
518,386

Residential real estate
2,891

 
66

 
—

 
2,957

 
602,927

 
18,841

 
624,725

Consumer
2,618

 
1,477

 
—

 
4,095

 
466,934

 
3,900

 
474,929

Total gross loans receivable held to maturity
$
9,965

 
$
4,235

 
$
22

 
$
14,222

 
$
6,668,789

 
$
64,806

 
$
6,747,817

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
1,246

 
$
259

 
$
100

 
$
1,605

 
$
1,637,773

 
$
7,228

 
$
1,646,606

Commercial real estate
4,769

 
2,326

 
—

 
7,095

 
3,139,576

 
16,598

 
3,163,269

Total commercial and commercial real estate
6,015

 
2,585

 
100

 
8,700

 
4,777,349

 
23,826

 
4,809,875

Agricultural and agricultural real estate
604

 
134

 
—

 
738

 
497,546

 
13,304

 
511,588

Residential real estate
2,022

 
270

 
—

 
2,292

 
601,120

 
20,867

 
624,279

Consumer
4,734

 
943

 
730

 
6,407

 
436,493

 
4,584

 
447,484

Total gross loans receivable held to maturity
$
13,375

 
$
3,932

 
$
830

 
$
18,137

 
$
6,312,508

 
$
62,581

 
$
6,393,226
Summary of Impaired Loans
At March 31, 2018, and December 31, 2017, the carrying amount of loans acquired since 2015 consist of purchased impaired and nonimpaired loans as summarized in the following table, in thousands:
 
March 31, 2018
 
December 31, 2017
 
Impaired
Purchased
Loans
 
Non
Impaired
Purchased
Loans
 
Total
Purchased
Loans
 
Impaired
Purchased
Loans
 
Non
Impaired
Purchased
Loans
 
Total
Purchased
Loans
Commercial
$
3,142

 
$
262,107

 
$
265,249

 
$
952

 
$
187,375

 
$
188,327

Commercial real estate
2,474

 
1,078,724

 
1,081,198

 
2,572

 
1,052,469

 
1,055,041

Agricultural and agricultural real estate
—

 
26

 
26

 
—

 
1,242

 
1,242

Residential real estate
199

 
181,020

 
181,219

 
214

 
173,909

 
174,123

Consumer loans
—

 
78,613

 
78,613

 
—

 
51,292

 
51,292

Total loans
$
5,815

 
$
1,600,490

 
$
1,606,305

 
$
3,738

 
$
1,466,287

 
$
1,470,025

The following tables present, by category of loan, impaired loans, the unpaid contractual loan balances at March 31, 2018, and December 31, 2017; the outstanding loan balances recorded on the consolidated balance sheets at March 31, 2018, and December 31, 2017; any related allowance recorded for those loans as of March 31, 2018, and December 31, 2017; the average outstanding loan balances recorded on the consolidated balance sheets during the three-months ended March 31, 2018, and year ended December 31, 2017; and the interest income recognized on the impaired loans during the three-month period ended March 31, 2018, and year ended December 31, 2017, in thousands:
 
Unpaid
Contractual
Balance
 
Loan
Balance
 
Related
Allowance
Recorded
 
Year-
to-
Date
Avg.
Loan
Balance
 
Year-
to-
Date
Interest
Income
Recognized
March 31, 2018
 
 
 
 
 
 
 
 
 
Impaired loans with a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
2,816

 
$
2,816

 
$
2,425

 
$
2,472

 
$
—

Commercial real estate
11,180

 
9,324

 
736

 
9,520

 
8

Total commercial and commercial real estate
13,996

 
12,140

 
3,161

 
11,992

 
8

Agricultural and agricultural real estate
1,536

 
1,536

 
787

 
1,537

 
—

Residential real estate
1,693

 
1,693

 
386

 
1,608

 
3

Consumer
2,859

 
2,859

 
1,137

 
3,069

 
9

Total impaired loans with a related allowance
$
20,084

 
$
18,228

 
$
5,471

 
$
18,206

 
$
20

Impaired loans without a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
7,308

 
$
6,189

 
$
—

 
$
5,449

 
$
49

Commercial real estate
14,202

 
13,596

 
—

 
13,879

 
97

Total commercial and commercial real estate
21,510

 
19,785

 
—

 
19,328

 
146

Agricultural and agricultural real estate
17,388

 
15,360

 
—

 
12,954

 
1

Residential real estate
26,635

 
26,631

 
—

 
26,878

 
109

Consumer
3,757

 
3,568

 
—

 
3,912

 
22

Total impaired loans without a related allowance
$
69,290

 
$
65,344

 
$
—

 
$
63,072

 
$
278

Total impaired loans held to maturity:
 
 
 
 
 
 
 
 
 
Commercial
$
10,124

 
$
9,005

 
$
2,425

 
$
7,921

 
$
49

Commercial real estate
25,382

 
22,920

 
736

 
23,399

 
105

Total commercial and commercial real estate
35,506

 
31,925

 
3,161

 
31,320

 
154

Agricultural and agricultural real estate
18,924

 
16,896

 
787

 
14,491

 
1

Residential real estate
28,328

 
28,324

 
386

 
28,486

 
112

Consumer
6,616

 
6,427

 
1,137

 
6,981

 
31

Total impaired loans held to maturity
$
89,374

 
$
83,572

 
$
5,471

 
$
81,278

 
$
298


 
Unpaid
Contractual
Balance
 
Loan
Balance
 
Related
Allowance
Recorded
 
Year-to-
Date
Avg.
Loan
Balance
 
Year-to-
Date
Interest
Income
Recognized
December 31, 2017
 
 
 
 
 
 
 
 
 
Impaired loans with a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
2,292

 
$
2,292

 
$
1,613

 
$
3,607

 
$
39

Commercial real estate
11,925

 
10,068

 
766

 
11,479

 
34

Total commercial and commercial real estate
14,217

 
12,360

 
2,379

 
15,086

 
73

Agricultural and agricultural real estate
1,539

 
1,539

 
546

 
3,437

 
—

Residential real estate
1,568

 
1,568

 
430

 
2,056

 
15

Consumer
2,634

 
2,634

 
1,400

 
2,370

 
41

Total impaired loans with a related allowance
$
19,958

 
$
18,101

 
$
4,755

 
$
22,949

 
$
129

Impaired loans without a related allowance:
 
 
 
 
 
 
 
 
 
Commercial
$
6,243

 
$
5,123

 
$
—

 
$
2,586

 
$
165

Commercial real estate
14,243

 
13,637

 
—

 
20,148

 
514

Total commercial and commercial real estate
20,486

 
18,760

 
—

 
22,734

 
679

Agricultural and agricultural real estate
13,793

 
11,765

 
—

 
9,654

 
—

Residential real estate
25,573

 
25,573

 
—

 
26,024

 
277

Consumer
4,269

 
4,269

 
—

 
3,884

 
73

Total impaired loans without a related allowance
$
64,121

 
$
60,367

 
$
—

 
$
62,296

 
$
1,029

Total impaired loans held to maturity:
 
 
 
 
 
 
 
 
 
Commercial
$
8,535

 
$
7,415

 
$
1,613

 
$
6,193

 
$
204

Commercial real estate
26,168

 
23,705

 
766

 
31,627

 
548

Total commercial and commercial real estate
34,703

 
31,120

 
2,379

 
37,820

 
752

Agricultural and agricultural real estate
15,332

 
13,304

 
546

 
13,091

 
—

Residential real estate
27,141

 
27,141

 
430

 
28,080

 
292

Consumer
6,903

 
6,903

 
1,400

 
6,254

 
114

Total impaired loans held to maturity
$
84,079

 
$
78,468

 
$
4,755

 
$
85,245

 
$
1,158
Changes in Accretable Yield on Acquired Loans
Changes in accretable yield on acquired loans with evidence of credit deterioration at the date of acquisition for the three-month periods ended March 31, 2018, and March 31, 2017, were as follows, in thousands:
 
Three Months Ended
March 31,
 
2018
 
2017
Balance at beginning of period
$
57

 
$
182

Original yield premium, net, at date of acquisition
(56
)
 
—

Accretion
(199
)
 
(173
)
Reclassification from nonaccretable difference(1)
198

 
127

Balance at period end
$
—

 
$
136

 
 
 
 
(1) Represents increases in estimated cash flows expected to be received, primarily due to lower estimated credit losses.