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SECURITIES
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
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 that are carried at fair value as of June 30, 2020, and December 31, 2019, are summarized in the table below, in thousands:

Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2020    
U.S. government corporations and agencies$5,745  $97  $—  $5,842  
Mortgage and asset-backed securities3,130,605  45,792  (41,958) 3,134,439  
Obligations of states and political subdivisions919,665  49,828  (2,814) 966,679  
Total debt securities4,056,015  95,717  (44,772) 4,106,960  
Equity securities with a readily determinable fair value19,391  —  —  19,391  
Total$4,075,406  $95,717  $(44,772) $4,126,351  
December 31, 2019
U.S. government corporations and agencies$9,844  $49  $—  $9,893  
Mortgage and asset-backed securities2,579,081  17,200  (19,003) 2,577,278  
Obligations of states and political subdivisions704,073  12,516  (9,399) 707,190  
Total debt securities3,292,998  29,765  (28,402) 3,294,361  
Equity securities with a readily determinable fair value18,435  —  —  18,435  
Total$3,311,433  $29,765  $(28,402) $3,312,796  

The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of June 30, 2020, and December 31, 2019, are summarized in the table below, in thousands:

Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Credit Losses
June 30, 2020    
Obligations of states and political subdivisions$90,641  $10,916  $—  $101,557  $(62) 
Total$90,641  $10,916  $—  $101,557  $(62) 
December 31, 2019
Obligations of states and political subdivisions$91,324  $9,160  $—  $100,484  $—  
Total$91,324  $9,160  $—  $100,484  $—  

As of June 30, 2020, Heartland had $14.5 million of accrued interest receivable, which is included in other assets on the consolidated balance sheet. Heartland does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses calculation.
The amortized cost and estimated fair value of investment securities carried at fair value at June 30, 2020, 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.

June 30, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$9,026  $9,079  
Due in 1 to 5 years22,916  23,333  
Due in 5 to 10 years77,716  81,897  
Due after 10 years815,752  858,212  
Total debt securities925,410  972,521  
Mortgage and asset-backed securities3,130,605  3,134,439  
Equity securities with a readily determinable fair value 19,391  19,391  
Total investment securities$4,075,406  $4,126,351  

The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2020, 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.

June 30, 2020
Amortized CostEstimated Fair Value
Due in 1 year or less$1,814  $1,840  
Due in 1 to 5 years17,582  18,389  
Due in 5 to 10 years59,986  65,872  
Due after 10 years11,259  15,456  
Total debt securities90,641  101,557  
Allowance for credit losses(62) —  
Total investment securities$90,579  $101,557  

As of June 30, 2020, and December 31, 2019, securities with a carrying value of $2.07 billion and $509.6 million, respectively, were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required or permitted by law.

Gross gains and losses realized related to the sales of securities carried at fair value for the three- and six-month periods ended June 30, 2020 and 2019, are summarized as follows, in thousands:

Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Proceeds from sales$182,749  $760,743  $511,639  $1,194,897  
Gross security gains3,958  5,522  6,862  7,930  
Gross security losses1,952  1,942  3,198  2,775  

The following table summarizes, 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 June 30, 2020, and December 31, 2019. 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 June 30, 2019, and December 31, 2018, respectively.

Debt securities available for saleLess than 12 months12 months or longerTotal
 Fair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		CountFair
Value		Unrealized
Losses		Count
June 30, 2020
Mortgage and asset-backed securities$1,070,001  $(23,591) 81  $392,756  $(18,367) 19  $1,462,757  $(41,958) 100  
Obligations of states and political subdivisions104,108  (2,814) 97  —  —  —  104,108  (2,814) 97  
Total temporarily impaired securities$1,174,109  $(26,405) 178  $392,756  $(18,367) 19  $1,566,865  $(44,772) 197  
December 31, 2019
Mortgage and asset-backed securities$1,231,732  $(14,189) 150  $241,232  $(4,814) 58  $1,472,964  $(19,003) 208  
Obligations of states and political subdivisions387,534  (9,399) 50  —  —  —  387,534  (9,399) 50  
Total temporarily impaired securities$1,619,266  $(23,588) 200  $241,232  $(4,814) 58  $1,860,498  $(28,402) 258  


Heartland had no securities held to maturity with unrealized losses at June 30, 2020, or December 31, 2019.

On January 1, 2020, Heartland adopted the amendments within ASU 2016-13, which replaced the legacy GAAP other-than-temporary impairment ("OTTI") model with a credit loss model. The credit loss model under ASC 326-30, applicable to AFS debt securities, requires the recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. See Note 1, "Basis of Presentation," to the consolidated financial statements included herein for a discussion of the impact of the adoption of ASU 2016-13. Heartland reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors, and the relative significance of any single factor can vary by security. Some factors Heartland may consider include changes in security ratings, financial condition of the issuer, as well as security and industry specific economic conditions. In addition, with regard to debt securities, Heartland may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. For certain debt securities in unrealized loss positions, Heartland prepares cash flow analyses to compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security.

The remaining unrealized losses on Heartland's mortgage and asset-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. The losses are not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three and six months ended June 30, 2020.

The remaining unrealized losses on Heartland's obligations of states and political subdivisions are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the published credit ratings of these securities and the stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or widening market spreads due to insurance company downgrades and not underlying credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three and six months ended June 30, 2020.

The credit loss model under ASC 326-30, applicable to held to maturity debt securities, requires the recognition of lifetime expected credit losses through an allowance account at the time when the security is purchased. The following table presents, in
thousands, the activity in the allowance for credit losses for securities held to maturity by major security type for the three- and six months ended June 30, 2020:
Obligations of states and political subdivisions
Balance at March 31, 2020$197  
Provision for credit losses(135) 
Balance at June 30, 2020$62  
Obligations of states and political subdivisions
Balance at December 31, 2019$—  
Impact of ASU 2016-13 adoption158  
Provision for credit losses(96) 
Balance at June 30, 2020
$62  

The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of June 30, 2020, which are updated quarterly and used to monitor the credit quality of the securities:

RatingObligations of states and political subdivisions
AAA$3,086  
AA, AA+, AA-16,947  
A+, A, A-13,750  
BBB6,102  
Not Rated50,756  
Total $90,641  

Included in other securities were shares of stock in each Federal Home Loan Bank (the "FHLB") of Des Moines, Chicago, Dallas, San Francisco and Topeka at an amortized cost of $20.9 million at June 30, 2020 and $16.8 million at December 31, 2019.

The Heartland banks are required by federal law to maintain FHLB stock as members of the various FHLBs. These equity securities are "restricted" in that they can only be sold back to the respective institutions from which they were acquired or another member institution at par. Therefore, the FHLB stock is less liquid than other marketable equity securities, and the fair value approximates amortized cost. Heartland considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. Heartland evaluates impairment in these investments based on the ultimate recoverability of the par value and, at June 30, 2020, did not consider the investments to be other than temporarily impaired.