XML 55 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Debt Securities, Available-for-sale [Table Text Block]
The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available for sale and equity securities with a readily determinable fair value as of December 31, 2018, and December 31, 2017, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2018
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
32,075

 
$
3

 
$
(127
)
 
$
31,951

Mortgage and asset-backed securities
2,061,358

 
3,740

 
(38,400
)
 
2,026,698

Obligations of states and political subdivisions
382,101

 
919

 
(8,046
)
 
374,974

Total debt securities
2,475,534

 
4,662

 
(46,573
)
 
2,433,623

Equity securities with a readily determinable fair value
17,086

 
—

 
—

 
17,086

Total
$
2,492,620

 
$
4,662

 
$
(46,573
)
 
$
2,450,709

December 31, 2017
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
5,358

 
$
8

 
$
(38
)
 
$
5,328

Mortgage and asset-backed securities
1,785,467

 
5,856

 
(37,587
)
 
1,753,736

Obligations of states and political subdivisions
441,060

 
4,669

 
(4,714
)
 
441,015

Total debt securities
2,231,885

 
10,533

 
(42,339
)
 
2,200,079

Equity securities
16,296

 
378

 
—

 
16,674

Total
$
2,248,181

 
$
10,911

 
$
(42,339
)
 
$
2,216,753

The amortized cost and estimated fair value of investment securities carried at fair value at December 31, 2018, 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, 2018
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
30,248

 
$
30,163

Due in 1 to 5 years
51,947

 
51,120

Due in 5 to 10 years
137,983

 
135,423

Due after 10 years
193,998

 
190,219

    Total debt securities
414,176

 
406,925

Mortgage and asset-backed securities
2,061,358

 
2,026,698

Equity securities with a readily determinable fair value
17,086

 
17,086

Total investment securities
$
2,492,620

 
$
2,450,709
Schedule of Securities Held to Maturity
The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2018, 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, 2018
 
Amortized Cost
 
Estimated Fair Value
Due in 1 year or less
$
583

 
$
589

Due in 1 to 5 years
31,156

 
31,759

Due in 5 to 10 years
111,690

 
115,342

Due after 10 years
92,854

 
97,651

Total investment securities
$
236,283

 
$
245,341


The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 2018, and December 31, 2017, are summarized in the table below, in thousands:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2018
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
236,283

 
$
9,554

 
$
(496
)
 
$
245,341

Total
$
236,283

 
$
9,554

 
$
(496
)
 
$
245,341

December 31, 2017
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
253,550

 
$
12,460

 
$
(516
)
 
$
265,494

Total
$
253,550

 
$
12,460

 
$
(516
)
 
$
265,494
Schedule of Realized Gross Gains and Losses on Sales of Securities Available for Sale
Gross gains and losses realized related to sales of securities carried at fair value for the years ended December 31, 2018, 2017 and 2016 are summarized as follows, in thousands:
 
2018
 
2017
 
2016
Available for Sale Securities sold:
 
 
 
 
 
Proceeds from sales
$
727,895

 
$
1,456,750

 
$
909,942

Gross security gains
3,661

 
10,585

 
13,200

Gross security losses
2,576

 
3,812

 
1,562
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, 2018, and December 31, 2017. 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, 2018, and December 31, 2017, 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.
Debt 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, 2018
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
24,902

 
$
(83
)
 
$
4,577

 
$
(44
)
 
$
29,479

 
$
(127
)
Mortgage and asset-backed securities
733,826

 
(9,060
)
 
805,089

 
(29,340
)
 
1,538,915

 
(38,400
)
Obligations of states and political subdivisions
34,990

 
(390
)
 
258,143

 
(7,656
)
 
293,133

 
(8,046
)
Total temporarily impaired securities
$
793,718

 
$
(9,533
)
 
$
1,067,809

 
$
(37,040
)
 
$
1,861,527

 
$
(46,573
)
December 31, 2017
U.S. government corporations and agencies
$
4,819

 
$
(38
)
 
$
—

 
$
—

 
$
4,819

 
$
(38
)
Mortgage and asset-backed securities
851,070

 
(11,533
)
 
399,978

 
(26,054
)
 
1,251,048

 
(37,587
)
Obligations of states and political subdivisions
93,040

 
(667
)
 
159,180

 
(4,047
)
 
252,220

 
(4,714
)
Total temporarily impaired securities
$
948,929

 
$
(12,238
)
 
$
559,158

 
$
(30,101
)
 
$
1,508,087

 
$
(42,339
)
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, 2018
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
10,802

 
$
(17
)
 
$
19,508

 
$
(479
)
 
$
30,310

 
$
(496
)
Total temporarily impaired securities
$
10,802

 
$
(17
)
 
$
19,508

 
$
(479
)
 
$
30,310

 
$
(496
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
8,512

 
$
(49
)
 
$
8,989

 
$
(467
)
 
$
17,501

 
$
(516
)
Total temporarily impaired securities
$
8,512

 
$
(49
)
 
$
8,989

 
$
(467
)
 
$
17,501

 
$
(516
)
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, 2018, 2017 and 2016, were as follows, in thousands:
 
For the Years Ended December 31,
 
2018
 
2017
 
2016
Credit loss component, beginning of period
$
—

 
$
—

 
$
1,750

Additions:
 
 
 
 
 
Initial credit impairments
—

 
—

 
—

Subsequent credit impairments
—

 
—

 
—

Total additions
—


—


—

Reductions:
 
 
 
 
 
For securities sold
—

 
—

 
1,750

Total reductions
—


—


1,750

Credit loss component, end of period
$
—


$
—


$
—

The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in AOCI for the same securities, in thousands:
 
For the Years Ended December 31,
 
2018
 
2017
 
2016
OTTI on debt securities
 
 
 
 
 
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:
 
 
 
 
 
Reclassification of non-credit related impairment
—

 
—

 
—

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
$
—


$
—


$
(127
)