HBT Financial (HBT) 10-K 27 Mar 20 2019 FY Annual report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 27, 2020	Jun. 30, 2019
DOCUMENT AND ENTITY INFORMATION
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	HBT Financial, Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		27,457,306
Entity Central Index Key	0000775215
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 22,112	$ 21,343
Interest-bearing deposits with banks	261,859	165,536
Cash and cash equivalents	283,971	186,879
Interest-bearing time deposits with banks	248	248
Securities available-for-sale, at fair value	592,404	679,526
Securities held-to-maturity (fair value of $90,529 in 2019 and $121,506 in 2018)	88,477	121,715
Equity securities	4,389	3,261
Restricted stock, at cost	2,425	2,719
Loans held for sale	4,531	2,800
Loans, net of allowance for loan losses of $22,299 in 2019 and $20,509 in 2018	2,141,527	2,123,748
Bank premises and equipment, net	53,987	54,736
Bank premises held for sale	121	749
Foreclosed assets	5,099	9,559
Goodwill	23,620	23,620
Core deposit intangible assets, net	4,030	5,453
Mortgage servicing rights, at fair value	8,518	10,918
Investments in unconsolidated subsidiaries	1,165	1,165
Accrued interest receivable	13,951	15,300
Other assets	16,640	7,173
Total assets	3,245,103	3,249,569
Deposits:
Noninterest-bearing	689,116	664,876
Interest-bearing	2,087,739	2,131,094
Total deposits	2,776,855	2,795,970
Securities sold under agreements to repurchase	44,433	46,195
Subordinated debentures	37,583	37,517
Other liabilities	53,314	29,491
Total liabilities	2,912,185	2,909,173
COMMITMENTS AND CONTINGENCIES (Notes 11 and 20)
Stockholders' Equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding as of December 31, 2019
Common stock:
Surplus	190,524	32,288
Retained earnings	134,287	315,234
Accumulated other comprehensive income (loss)	7,832	(4,288)
Less cost of treasury stock held:
Total stockholders’ equity	332,918	340,396
Total liabilities and stockholders’ equity	3,245,103	3,249,569
Voting
Common stock:
Common Stock	$ 275	3
Less cost of treasury stock held:
Treasury Stock		(1,667)
Series A Nonvoting
Common stock:
Common Stock		178
Less cost of treasury stock held:
Treasury Stock		$ (1,352)

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity
Securities held-to-maturity fair value	$ 90,529	$ 121,506
Allowance for loan losses	$ 22,299	$ 20,509
Preferred stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized	25,000,000
Preferred stock, shares issued	0
Preferred stock, shares outstanding	0
Voting
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	400,000
Common stock, shares issued	27,457,306	315,780
Common stock, shares outstanding	27,457,306	268,312
Treasury stock ,shares		47,468
Series A Nonvoting
Stockholders' Equity
Common stock, par value (in dollars per share)		$ 0.01
Common stock, shares authorized		24,000,000
Common stock, shares issued		17,835,960
Common stock, shares outstanding		17,759,200
Treasury stock ,shares		76,760

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans, including fees:
Taxable	$ 117,296	$ 111,349	$ 104,258
Federally tax exempt	2,846	2,685	2,209
Securities:
Taxable	14,854	14,459	11,513
Federally tax exempt	5,728	7,154	7,905
Interest-bearing deposits in bank	2,951	1,717	1,657
Other interest and dividend income	60	68	51
Total interest and dividend income	143,735	137,432	127,593
INTEREST EXPENSE
Deposits	7,932	5,887	4,959
Securities sold under agreements to repurchase	72	48	45
Borrowings	9	260	66
Subordinated debentures	1,922	1,795	1,525
Total interest expense	9,935	7,990	6,595
Net interest income	133,800	129,442	120,998
PROVISION FOR LOAN LOSSES	3,404	5,697	3,139
Net interest income after provision for loan losses	130,396	123,745	117,859
NONINTEREST INCOME
Mortgage servicing	3,143	3,261	3,398
Mortgage servicing rights fair value adjustment	(2,400)	629	(315)
Gains on sale of mortgage loans	3,092	2,872	4,506
Gains (losses) on securities	(5)	(2,663)	(1,275)
Gains (losses) on foreclosed assets	940	(1,337)	282
Gains (losses) on other assets	944	787	(2,146)
Other noninterest income	4,108	3,560	4,976
Total noninterest income	32,751	31,240	33,171
NONINTEREST EXPENSE
Salaries	49,345	49,663	51,386
Employee benefits	9,564	6,244	5,939
Occupancy of bank premises	6,867	7,352	7,308
Furniture and equipment	2,813	3,000	3,405
Data processing	5,570	5,234	4,850
Marketing and customer relations	3,873	4,211	4,523
Amortization of intangible assets	1,423	1,559	1,916
FDIC insurance	198	942	960
Loan collection and servicing	2,633	2,710	2,979
Foreclosed assets	676	772	1,293
Net adjustments on FDIC asset and true-up liability			999
Other noninterest expense	8,064	8,630	8,499
Total noninterest expense	91,026	90,317	94,057
INCOME BEFORE INCOME TAX EXPENSE	72,121	64,668	56,973
INCOME TAX EXPENSE	5,256	869	870
NET INCOME	$ 66,865	$ 63,799	$ 56,103
EARNINGS PER SHARE - BASIC	$ 3.33	$ 3.54	$ 3.10
EARNINGS PER SHARE - DILUTED	$ 3.33	$ 3.54	$ 3.10
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING	20,090,270	18,047,332	18,070,692
Card income
NONINTEREST INCOME
Revenue	$ 7,765	$ 7,381	$ 6,780
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	7,870	8,141	8,170
Wealth management fees
NONINTEREST INCOME
Revenue	7,127	7,402	7,314
Title insurance activity
NONINTEREST INCOME
Revenue	$ 167	$ 1,207	$ 1,481

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 72,121	$ 64,668	$ 56,973
Pro forma C Corp equivalent income tax expense	5,256	869	870
NET INCOME	$ 66,865	$ 63,799	$ 56,103
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC	$ 3.33	$ 3.54	$ 3.10
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED	$ 3.33	$ 3.54	$ 3.10
Pro Forma
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 72,121	$ 64,668	$ 56,973
Pro forma C Corp equivalent income tax expense	18,749	16,371	19,679
NET INCOME	$ 53,372	$ 48,297	$ 37,294
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC	$ 2.66	$ 2.68	$ 2.06
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED	$ 2.66	$ 2.68	$ 2.06

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$ 66,865	$ 63,799	$ 56,103
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gains (losses) on securities available-for-sale	12,458	(5,692)	(2,052)
Reclassification adjustment for (gains) losses on securities available-for-sale realized in income		2,541	1,275
Reclassification adjustment for accretion of net unrealized gain on securities transferred to held-to-maturity	(264)	(382)	(393)
Unrealized losses on derivative instruments	(698)	(83)	(27)
Reclassification adjustment for net settlements on derivative instruments	(87)	(175)	(167)
Income tax benefit	711
Total other comprehensive income (loss)	12,120	(3,791)	(1,364)
TOTAL COMPREHENSIVE INCOME	$ 78,985	$ 60,008	$ 54,739

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	VotingCommon Stock	Series A NonvotingCommon Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at Dec. 31, 2016	$ 3	$ 178	$ 32,288	$ 294,900	$ 989	$ (2,112)	$ 326,246
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				56,103			56,103
Other comprehensive income (loss)					(1,364)		(1,364)
Cash dividends				(57,069)			(57,069)
Balance at Dec. 31, 2017	3	178	32,288	293,934	(375)	(2,112)	323,916
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				63,799			63,799
Other comprehensive income (loss)					(3,791)		(3,791)
Repurchase of common stock -Series A (43,180 shares)						(907)	(907)
Cash dividends				(42,621)			(42,621)
Balance at Dec. 31, 2018	3	178	32,288	315,234	(4,288)	(3,019)	340,396
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU 2016-01				122	(122)
Net income				66,865			66,865
Other comprehensive income (loss)					12,120		12,120
Reclassification of undistributed S-Corp earnings			20,472	(20,472)
Issuance of common stock, net of issuance costs	95		138,398				138,493
Conversion of common stock	178	$ (178)
Cancelation of treasury stock	(1)		(634)	(2,384)		$ 3,019
Cash dividends				(224,956)			(224,956)
Balance at Dec. 31, 2019	$ 275		$ 190,524	$ 134,287	$ 7,832		$ 332,918

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Transactions, Parenthetical Disclosures [Abstract]
Repurchase of common stock (in shares)		43,180
Cancelation of shares of treasury stock (in shares)	124,228
Cash dividends	$ 12.48	$ 2.36	$ 3.16
Voting | Common Stock
Stock Transactions, Parenthetical Disclosures [Abstract]
Issuance of common stock (in shares)	9,429,794

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 66,865	$ 63,799	$ 56,103
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	2,709	3,219	3,292
Provision for loan losses	3,404	5,697	3,139
Net amortization of securities	3,450	5,045	5,921
Deferred income tax benefit	(2,695)
Net accretion of discount and deferred loan fees on loans	(3,707)	(5,091)	(5,853)
Net realized loss on sales of securities		2,541	1,275
Net unrealized loss on equity securities	5	122
Net (gain) loss on sales of bank premises and equipment	(29)	6	216
Net gain on sales of bank premises held for sale	(448)	(734)
Impairment losses on bank premises held for sale	37	52	1,936
Net (gain) loss on sales of foreclosed assets	(1,048)	268	(1,727)
Gain on loan foreclosures		(96)	(974)
Write-down of foreclosed assets	563	1,165	2,419
Amortization of intangibles	1,423	1,559	1,916
Decrease (increase) in mortgage servicing rights	2,400	(629)	315
Amortization of subordinated debt purchase accounting adjustment	66	66	65
Mortgage loans originated for sale	(150,652)	(128,514)	(158,948)
Proceeds from sale of mortgage loans	152,013	133,449	166,417
Net gain on sale of mortgage loans	(3,092)	(2,872)	(4,506)
Gain on sale of First Community Title Services, Inc.	(498)
Decrease (increase) in accrued interest receivable	1,349	(553)	(1,328)
(Increase) decrease in other assets	(602)	35	(145)
Increase in other liabilities	17,579	1,460	2,549
Net cash provided by operating activities	89,092	79,994	72,082
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in interest-bearing time deposits with banks		496
Proceeds from sales of securities available-for-sale		104,303	51,500
Proceeds from paydowns, maturities, and calls of securities	201,472	171,462	224,110
Purchase of securities	(73,117)	(189,412)	(355,552)
Net increase in loans	(17,950)	(29,375)	(15,748)
Purchase of restricted stock		(2,374)	(171)
Proceeds from redemption of restricted stock	294	2,531	4,422
Purchases of bank premises and equipment	(2,107)	(1,656)	(2,161)
Proceeds from sales of bank premises and equipment	176	10	120
Proceeds from sales of bank premises held for sale	1,039	2,252
Proceeds from sales of foreclosed assets	5,460	6,851	9,049
Capital improvements to foreclosed assets	(41)
Cash received from sale of First Community Title Services, Inc.	114
Net indemnification payments paid to the FDIC			(949)
Cash paid for termination of FDIC loss-sharing agreements			(4,929)
Net cash provided by (used in) investing activities	115,340	65,088	(90,309)
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(19,115)	(59,715)	(21,519)
Net (decrease) increase in repurchase agreements	(1,762)	8,357	(1,243)
Proceeds from Federal Home Loan Bank borrowings			29,000
Repayment of Federal Home Loan Bank borrowings		(29,000)	(4,000)
Issuance of common stock	138,493
Repurchase of common stock		(907)
Cash dividends paid	(224,956)	(42,621)	(57,069)
Net cash used in financing activities	(107,340)	(123,886)	(54,831)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	97,092	21,196	(73,058)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	186,879	165,683	238,741
CASH AND CASH EQUIVALENTS AT END OF YEAR	283,971	186,879	165,683
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	10,010	7,826	6,648
Cash paid for income taxes	880	851	892
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	2,520	2,518	10,212
Sales of foreclosed assets through loan origination	$ 2,046	$ 1,220	150
Transfers of bank premises and equipment to bank premises held for sale			$ 2,319

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES HBT Financial, Inc. (Company), formerly known as Heartland Bancorp, Inc. until the Company name was changed on September 13, 2019, provides a full range of banking services to individual and corporate customers through its subsidiary banks. The Company is subject to competition from other financial and nonfinancial institutions providing financial services in its customer service area which is primarily rural communities located in central and northeastern Illinois and parts of the Chicagoland area. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and reporting practices applicable to the banking industry. Significant accounting policies are summarized below. On September 13, 2019, the Company effected a twenty-for-one stock split of its issued and outstanding shares of common stock and its issued and outstanding shares of Series A nonvoting common stock. Accordingly, all share and per share amounts for all periods presented in these financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the stock split. On October 10, 2019, each share of Series A nonvoting common stock was reclassified and converted into one share of common stock. Additionally, the Company increased the authorized shares to 150,000,000, of which 125,000,000 shares, par value of $0.01 per share, are designated as common stock and 25,000,000 shares, par value of $0.01 per share, are designated as preferred stock. Initial Public Offering On September 13, 2019, the Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission (SEC). The Registration Statement was declared effective by the SEC on October 10, 2019. The Company issued and sold 9,429,794 shares of common stock at a price of $16 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were $138,493,000. The proceeds were used to fund a $170 million special dividend, or $9.43 per share, to stockholders of record prior to the initial public offering. The Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (JOBS Act). Under the JOBS Act, emerging growth companies may also elect to delay adoption of new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards and, therefore, the Company will not be subject to the same new or revised accounting standards as other public companies. Basis of Consolidation The consolidated financial statements of HBT Financial, Inc. include the accounts of the Company and its wholly owned bank subsidiaries, Heartland Bank and Trust Company (Heartland Bank) and State Bank of Lincoln. Heartland Bank and State Bank of Lincoln are collectively referred to as “the Banks”. The Company also has five wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B, Heartland Bancorp, Inc. Capital Trust C, Heartland Bancorp, Inc. Capital Trust D, FFBI Capital Trust I, and National Bancorp Statutory Trust I, which are not consolidated, in accordance with GAAP, as more fully described in Note 12. Significant intercompany transactions and accounts have been eliminated in consolidation. Unaudited Pro Forma Income Statement Information Effective October 11, 2019, the Company revoked its S Corporation status and became a taxable entity (C Corporation). As such any periods prior to October 11, 2019 will only reflect state replacement taxes. The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the years ended December 31, 2019, 2018, and 2017. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the years ended December 31, 2019, 2018, and 2017. The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during the years ended December 31, 2019, 2018, and 2017, therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same. Sale of First Community Title Services, Inc. On February 15, 2019, the Company consummated an agreement to sell substantially all assets and liabilities of First Community Title Services, Inc. to Illinois Real Estate Title Center, LLC, an Illinois limited liability company, for a combination of cash and an equity interest in Illinois Real Estate Title Center, LLC representing total consideration of approximately $498,000. Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and income taxes. Business and Significant Concentrations of Credit Risk The Company provides several types of loans to individuals and businesses primarily located in their customer service areas. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Banks are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificate of deposit accounts. Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net. Interest-Bearing Time Deposits with Banks Interest-bearing time deposits with banks are carried at cost. Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. There were no such transfers in 2019, 2018 and 2017. Declines in the fair value of individual securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the intent of the Company to not sell the security or whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other-than-temporary is recorded as a loss in noninterest income. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in gains (losses) on securities on the statements of income. The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Restricted Stock Restricted stock, consisting of Federal Home Loan Bank of Chicago (FHLB) stock, is carried at cost and evaluated for impairment. The Company’s investment in FHLB stock amounted to $2,425,000 and $2,719,000 as of December 31, 2019 and 2018, respectively. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses, deferred loan fees or costs on originated loans, and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for loan losses if accrued in a prior year. Amortization of related deferred loan fees or costs is also suspended at this time. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. As of December 31, 2019 and 2018, loans to directors, executive officers, principal shareholders and their affiliated entities (related parties) amounted to $4,162,000 and $830,000, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us. Allowance for Loan Losses The allowance for loan losses (allowance) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance. Loan losses are charged off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The allowance consists of two primary components, general reserves and specific reserves related to impaired loans. The general component covers non-impaired loans and is based on historical losses adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 16‑quarter period. This actual loss experience is adjusted for qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. These qualitative factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company generally measures impairment based on the fair value of the collateral, but also may use the present value of expected future cash flows discounted at the original contractual interest rate, when practical. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. In general, if the Company grants a TDR that involves either the absence of principal amortization or a material extension of an existing loan amortization period in excess of our underwriting standards, the loan will be placed on nonaccrual status. However, if a TDR is well secured by an abundance of collateral and the collectability of both interest and principal is probable, the loan may remain on accrual status. A nonaccrual TDR in full compliance with the payment requirements specified in the loan modification for at least six months may return to accrual status, if the collectability of both principal and interest is probable. All TDRs are individually evaluated for impairment. The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $500,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows: Pass : A Pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. Watch : A Watch loan is not a classified asset, but reflects a borrower that exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant classification. Substandard : A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms. Doubtful : A Doubtful loan has all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer and other, with risk characteristics described as follows: Commercial and Industrial : Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Agricultural and Farmland : Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. Economic trends influenced by unemployment rates and other key economic indicators are not closely correlated to the credit quality of agricultural and farmland loans. The credit quality of these loans is most correlated to changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Commercial Real Estate - Owner Occupied : Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied : Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. Commercial real estate – non-owner occupied are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments or an overbuilt market typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties impact the credit quality of these loans. Multi-family : Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. Construction and Land Development : Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. One-to-four Family Residential : Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Municipal, Consumer and Other : Loans to municipalities are primarily federally tax-exempt. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to other financial institutions, as well as leases, are also included. Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators review the adequacy of the allowance and may require additions to the allowance based on their judgment about information available at the time of their examinations. Loans Acquired with Deteriorated Credit Quality Loans acquired that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Loans are evaluated by management at the time of purchase to determine if there is evidence of deterioration in credit quality since origination. Loans where there is evidence of deterioration of credit quality since origination may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable yield with a positive impact on interest income on a prospective basis. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost recovery method or cash basis method of income recognition. Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Banks have entered into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2019 and 2018, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Other identifiable intangible assets consist of core deposit intangible assets with definite useful lives which are being amortized using straight-line and accelerated methods over 10 years. The Company will periodically review the status of core deposit intangible assets for any events or circumstances which may change the recoverability of the underlying basis. Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using straight-line and accelerated methods. Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. The bank premises are not depreciated while classified as held for sale. During the year ended December 31, 2017, the Company closed certain branch locations. As of December 31, 2019 and 2018, the related branch buildings classified as held for sale totaled $121,000 and $749,000, respectively. During the years ended December 31, 2019, 2018, and 2017, there were impairment losses of $37,000, $52,000, and $1,936,000, respectively, included in gains (losses) on other assets on the consolidated statements of income. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell. FDIC Indemnification Asset and True-up Liability As a part of the Bank of Illinois (BOI) acquisition in 2010 and the Western Springs National Bank and Trust (WSNBT) acquisition in 2011, the Bank entered into loss-sharing agreements with the FDIC covering realized losses on loans and foreclosed assets. The BOI agreement included single family residential and non-single family residential loss-share agreements, while the WSNBT agreement only included a non-single family residential loss-share agreement. The single-family loss-share agreement had an original term of ten years and the non-single family residential loss-share agreement had an original term of eight years. The loss-sharing assets were measured separately from the loan portfolio because they were not contractually embedded in the loans and were not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition date were estimated based on projected cash flows for loss-sharing reimbursements and based on the credit adjustments estimated for each loan pool and the loss-sharing percentages. The loss-sharing assets were also separately measured from the related foreclosed real estate. Although these assets were contractual receivables from the FDIC, there were no contractual interest rates. On October 27, 2017, the loss-sharing agreements with the FDIC were terminated. As part of the termination agreement, the Company paid cash of $4,929,000 to the FDIC and also incurred a write-down of $459,000 which represented the remaining carrying value of the FDIC indemnification asset. Wealth Management Assets and Fees Assets of the wealth management department of the Banks are not included in the consolidated balance sheets as they are not assets of the Company or Banks. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for loan losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets, as well as expenses to maintain and hold foreclosed assets. Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. Participating employees are those employees in service on the valuation date who were employed on the last day of the plan year then ended, were on leave of absence on the last day of the plan year then ended, or any participant whose service was terminated during the plan year then ended due to retirement, disability, or death. A 401(k) feature also allows the Bank to make discretionary matching contributions in an amount up to 5% of compensation contributed by employees. Supplemental Executive Retirement Plan Heartland Bank has a supplemental executive retirement plan (SERP) that provides retirement incentives for certain executive employees. The liabilities for these awards are included in other liabilities in the consolidated balance sheets. This is an unfunded plan. In June 2019, the Company approved termination of

RESTRICTED CASH AND DUE FROM BA

RESTRICTED CASH AND DUE FROM BANKS	12 Months Ended
	Dec. 31, 2019
RESTRICTED CASH AND DUE FROM BANKS
RESTRICTED CASH AND DUE FROM BANKS	NOTE 2 – RESTRICTED CASH AND DUE FROM BANKS The Federal Reserve Bank required the Banks to maintain balances on reserve of approximately $23,100,000 and $22,037,000 as of December 31, 2019 and 2018, respectively.

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2019
SECURITIES
SECURITIES	NOTE 3 – SECURITIES The carrying balances of the securities were as follows: December 31, December 31, 2019 2018 (dollars in thousands) Securities available-for-sale $ 592,404 $ 679,526 Securities held-to-maturity 88,477 121,715 Equity securities: Readily determinable fair value 3,241 3,081 No readily determinable fair value 1,148 180 Total securities $ 685,270 $ 804,502 The Company has elected to measure the equity securities with no readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. During the year ended December 31, 2019, the Company recognized losses of $165,000 on equity securities with no readily determinable fair value based on observable price changes of an identical investment. The amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses, are as follows: December 31, 2019 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 49,113 $ 529 $ (27) $ 49,615 Municipal 131,241 2,503 (6) 133,738 Mortgage-backed: Agency residential 198,184 2,780 (286) 200,678 Agency commercial 133,730 1,516 (292) 134,954 Corporate 72,239 1,180 — 73,419 Total $ 584,507 $ 8,508 $ (611) $ 592,404 December 31, 2018 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 46,977 $ 250 $ (361) $ 46,866 Municipal 161,957 761 (1,268) 161,450 Mortgage-backed: Agency residential 235,903 788 (2,388) 234,303 Agency commercial 151,878 285 (2,082) 150,081 Private-label 254 2 — 256 Corporate 87,118 207 (755) 86,570 Total $ 684,087 $ 2,293 $ (6,854) $ 679,526 The amortized cost and fair value of securities held-to-maturity, with gross unrealized gains and losses, are as follows: December 31, 2019 Amortized Gross Gross Fair Value Held-to-maturity: (dollars in thousands) Municipal $ 45,239 $ 1,340 $ — $ 46,579 Mortgage-backed: Agency residential 19,072 161 (170) 19,063 Agency commercial 24,166 775 (54) 24,887 Total $ 88,477 $ 2,276 $ (224) $ 90,529 December 31, 2018 Amortized Gross Gross Fair Value Held-to-maturity: (dollars in thousands) Municipal $ 73,176 $ 1,149 $ (42) $ 74,283 Mortgage-backed: Agency residential 23,192 — (998) 22,194 Agency commercial 25,347 177 (495) 25,029 Total $ 121,715 $ 1,326 $ (1,535) $ 121,506 As of December 31, 2019 and 2018, the Banks had securities with a carrying value of $284,895,000 and $291,404,000, respectively, which were pledged to secure public and trust deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The Company has no direct exposure to the State of Illinois, but approximately 51% of the obligations of local municipalities portfolio consists of securities issued by municipalities located in Illinois as of December 31, 2019. Approximately 88% of such securities were general obligation issues as of December 31, 2019. The amortized cost and fair value of securities available-for-sale and securities held-to-maturity, as of December 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 49,357 $ 49,527 $ 752 $ 758 Due after 1 year through 5 years 115,487 117,484 31,309 32,238 Due after 5 years through 10 years 81,515 83,392 11,504 11,799 Due after 10 years 6,234 6,369 1,674 1,784 Mortgage-backed: Agency residential 198,184 200,678 19,072 19,063 Agency commercial 133,730 134,954 24,166 24,887 Total $ 584,507 $ 592,404 $ 88,477 $ 90,529 Sales of securities available-for-sale were as follows during the years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Proceeds from sales $ — 104,303 $ 51,500 Gross realized gains — 281 — Gross realized losses — (2,822) (1,275) Gains (losses) on securities were as follows during the years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Net realized losses on sales $ — (2,541) $ (1,275) Net unrealized gains (losses) on equities: Readily determinable fair value 160 (122) — No readily determinable fair value (165) — — Gains (losses) on securities $ (5) (2,663) $ (1,275) The following tables present gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2019 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (26) $ 18,865 $ (1) $ 1,998 $ (27) $ 20,863 Municipal (6) 894 — — (6) 894 Mortgage-backed: Agency residential (108) 25,563 (178) 27,296 (286) 52,859 Agency commercial (100) 20,056 (192) 15,704 (292) 35,760 Total $ (240) $ 65,378 $ (371) $ 44,998 $ (611) $ 110,376 Held-to-maturity: Mortgage-backed: Agency residential $ (30) $ 2,516 $ (140) $ 9,002 $ (170) $ 11,518 Agency commercial (47) 7,016 (7) 599 (54) 7,615 Total $ (77) $ 9,532 $ (147) $ 9,601 $ (224) $ 19,133 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2018 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (302) $ 19,079 $ (59) $ 7,938 $ (361) $ 27,017 Municipal (230) 31,034 (1,038) 59,702 (1,268) 90,736 Mortgage-backed: Agency residential (299) 40,864 (2,089) 99,967 (2,388) 140,831 Agency commercial (262) 35,462 (1,820) 81,899 (2,082) 117,361 Corporate (263) 20,734 (492) 39,054 (755) 59,788 Total $ (1,356) $ 147,173 $ (5,498) $ 288,560 $ (6,854) $ 435,733 Held-to-maturity: Municipal $ (32) $ 4,166 $ (10) $ 1,856 $ (42) $ 6,022 Mortgage-backed: Agency residential (59) 4,046 (939) 17,564 (998) 21,610 Agency commercial (67) 8,910 (428) 10,413 (495) 19,323 Total $ (158) $ 17,122 $ (1,377) $ 29,833 $ (1,535) $ 46,955 As of December 31, 2019, there were 59 securities in an unrealized loss position for a period of twelve months or more, and 35 securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in interest rates in the bond market. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these securities are deemed to be temporary.

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
LOANS AND THE ALLOWANCE FOR LOAN LOSSES	NOTE 4 – LOANS AND THE ALLOWANCE FOR LOAN LOSSES Major categories of loans as of December 31, 2019 and 2018 are summarized as follows: December 31, December 31, 2019 2018 (dollars in thousands) Commercial and industrial $ 307,175 $ 360,501 Agricultural and farmland 207,776 209,875 Commercial real estate - owner occupied 231,162 255,074 Commercial real estate - non-owner occupied 579,757 533,910 Multi-family 179,073 135,925 Construction and land development 224,887 237,275 One-to-four family residential 313,580 313,108 Municipal, consumer, and other 120,416 98,589 Loans, before allowance for loan losses 2,163,826 2,144,257 Allowance for loan losses (22,299) (20,509) Loans, net of allowance for loan losses $ 2,141,527 $ 2,123,748 The following tables detail activity in the allowance for loan losses for the years ended December 31: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2016 $ 4,870 $ 3,455 $ 1,622 $ 2,701 $ 1,282 $ 1,983 $ 2,720 $ 1,075 $ 19,708 Provision for loan losses 2,133 (1,067) (118) (243) (132) 1,474 376 716 3,139 Charge-offs (1,780) (3) (32) (940) (153) (503) (787) (818) (5,016) Recoveries 188 — 38 958 — 27 414 309 1,934 Balance, December 31, 2017 5,411 2,385 1,510 2,476 997 2,981 2,723 1,282 19,765 Provision for loan losses (532) 265 3,294 264 109 993 984 320 5,697 Charge-offs (1,446) — (2,352) (237) (194) (58) (1,415) (783) (6,485) Recoveries 315 — 54 141 — 260 490 272 1,532 Balance, December 31, 2018 3,748 2,650 2,506 2,644 912 4,176 2,782 1,091 20,509 Provision for loan losses 1,139 146 (376) 1,110 153 (1,640) 513 2,359 3,404 Charge-offs (886) (30) (407) (111) (41) (9) (1,105) (684) (3,273) Recoveries 440 — 56 20 — 450 350 343 1,659 Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 The following tables present the recorded investments in loans and the allowance for loan losses by category as of December 31: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 294,006 $ 192,722 $ 211,744 $ 561,277 $ 176,273 $ 217,708 $ 291,624 $ 106,448 $ 2,051,802 Individually evaluated for impairment 10,733 13,966 10,927 3,398 1,324 3,782 11,349 13,872 69,351 Acquired with deteriorated credit quality 2,436 1,088 8,491 15,082 1,476 3,397 10,607 96 42,673 Total $ 307,175 $ 207,776 $ 231,162 $ 579,757 $ 179,073 $ 224,887 $ 313,580 $ 120,416 $ 2,163,826 Allowance for loan losses: Collectively evaluated for impairment $ 1,926 $ 2,576 $ 1,486 $ 3,591 $ 1,019 $ 2,283 $ 1,684 $ 931 $ 15,496 Individually evaluated for impairment 2,170 105 270 70 — 567 822 2,176 6,180 Acquired with deteriorated credit quality 345 85 23 2 5 127 34 2 623 Total $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2018 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 350,435 $ 197,414 $ 226,068 $ 504,368 $ 132,379 $ 229,626 $ 287,173 $ 98,059 $ 2,025,522 Individually evaluated for impairment 7,488 11,295 19,202 7,820 1,678 3,331 12,837 416 64,067 Acquired with deteriorated credit quality 2,578 1,166 9,804 21,722 1,868 4,318 13,098 114 54,668 Total $ 360,501 $ 209,875 $ 255,074 $ 533,910 $ 135,925 $ 237,275 $ 313,108 $ 98,589 $ 2,144,257 Allowance for loan losses: Collectively evaluated for impairment $ 2,188 $ 2,611 $ 1,423 $ 2,566 $ 640 $ 2,024 $ 1,464 $ 1,024 $ 13,940 Individually evaluated for impairment 1,554 39 1,066 73 267 1,714 1,265 67 6,045 Acquired with deteriorated credit quality 6 — 17 5 5 438 53 — 524 Total $ 3,748 $ 2,650 $ 2,506 $ 2,644 $ 912 $ 4,176 $ 2,782 $ 1,091 $ 20,509 The following tables present loans individually evaluated for impairment by category of loans as of December 31: Unpaid Average Interest Principal Recorded Related Recorded Income December 31, 2019 Balance Investment Allowance Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 4,292 $ 4,292 $ 2,170 $ 5,275 $ 152 Agricultural and farmland 590 590 105 464 12 Commercial real estate - owner occupied 830 830 270 874 43 Commercial real estate - non-owner occupied 99 99 70 101 7 Multi-family — — — — — Construction and land development 3,679 3,679 567 3,988 171 One-to-four family residential 3,401 3,390 822 3,414 79 Municipal, consumer, and other 9,138 9,111 2,176 9,284 396 Total $ 22,029 $ 21,991 $ 6,180 $ 23,400 $ 860 With no related allowance: Commercial and industrial $ 6,438 $ 6,441 $ — $ 6,744 $ 206 Agricultural and farmland 13,369 13,376 — 14,826 824 Commercial real estate - owner occupied 10,089 10,097 — 10,190 483 Commercial real estate - non-owner occupied 3,297 3,299 — 3,465 131 Multi-family 1,328 1,324 — 1,344 9 Construction and land development 104 103 — 107 4 One-to-four family residential 7,986 7,959 — 8,360 240 Municipal, consumer, and other 4,775 4,761 — 4,874 104 Total $ 47,386 $ 47,360 $ — $ 49,910 $ 2,001 Total: Commercial and industrial $ 10,730 $ 10,733 $ 2,170 $ 12,019 $ 358 Agricultural and farmland 13,959 13,966 105 15,290 836 Commercial real estate - owner occupied 10,919 10,927 270 11,064 526 Commercial real estate - non-owner occupied 3,396 3,398 70 3,566 138 Multi-family 1,328 1,324 — 1,344 9 Construction and land development 3,783 3,782 567 4,095 175 One-to-four family residential 11,387 11,349 822 11,774 319 Municipal, consumer, and other 13,913 13,872 2,176 14,158 500 Total $ 69,415 $ 69,351 $ 6,180 $ 73,310 $ 2,861 Unpaid Average Interest Principal Recorded Related Recorded Income December 31, 2018 Balance Investment Allowance Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,833 $ 2,833 $ 1,554 $ 4,274 $ 106 Agricultural and farmland 406 406 39 566 16 Commercial real estate - owner occupied 2,323 2,322 1,066 3,574 67 Commercial real estate - non-owner occupied 103 103 73 640 7 Multi-family 1,362 1,362 267 1,472 66 Construction and land development 3,136 3,135 1,714 2,593 161 One-to-four family residential 3,022 3,008 1,265 3,377 82 Municipal, consumer, and other 230 231 67 302 5 Total $ 13,415 $ 13,400 $ 6,045 $ 16,798 $ 510 With no related allowance: Commercial and industrial $ 4,651 $ 4,655 $ — $ 5,093 $ 59 Agricultural and farmland 10,888 10,889 — 8,815 526 Commercial real estate - owner occupied 16,891 16,880 — 12,217 384 Commercial real estate - non-owner occupied 7,715 7,717 — 7,110 147 Multi-family 316 316 — 355 17 Construction and land development 198 196 — 528 3 One-to-four family residential 9,874 9,829 — 10,706 168 Municipal, consumer, and other 184 185 — 297 5 Total $ 50,717 $ 50,667 $ — $ 45,121 $ 1,309 Total: Commercial and industrial $ 7,484 $ 7,488 $ 1,554 $ 9,367 $ 165 Agricultural and farmland 11,294 11,295 39 9,381 542 Commercial real estate - owner occupied 19,214 19,202 1,066 15,791 451 Commercial real estate - non-owner occupied 7,818 7,820 73 7,750 154 Multi-family 1,678 1,678 267 1,827 83 Construction and land development 3,334 3,331 1,714 3,121 164 One-to-four family residential 12,896 12,837 1,265 14,083 250 Municipal, consumer, and other 414 416 67 599 10 Total $ 64,132 $ 64,067 $ 6,045 $ 61,919 $ 1,819 The following tables present the recorded investment in loans by category based on current payment and accrual status as of December 31: Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2019 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 301,975 $ 558 $ — $ 4,642 $ 307,175 Agricultural and farmland 201,519 — — 6,257 207,776 Commercial real estate - owner occupied 228,218 941 — 2,003 231,162 Commercial real estate - non-owner occupied 579,626 131 — — 579,757 Multi-family 177,696 — — 1,377 179,073 Construction and land development 224,716 140 — 31 224,887 One-to-four family residential 307,712 1,329 75 4,464 313,580 Municipal, consumer, and other 119,898 247 26 245 120,416 Total $ 2,141,360 $ 3,346 $ 101 $ 19,019 $ 2,163,826 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2018 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 356,481 $ 122 $ 1,747 $ 2,151 $ 360,501 Agricultural and farmland 207,791 108 — 1,976 209,875 Commercial real estate - owner occupied 249,698 538 184 4,654 255,074 Commercial real estate - non-owner occupied 532,241 1,058 — 611 533,910 Multi-family 134,368 1,361 196 — 135,925 Construction and land development 236,798 82 — 395 237,275 One-to-four family residential 304,439 2,154 600 5,915 313,108 Municipal, consumer, and other 97,998 380 37 174 98,589 Total $ 2,119,814 $ 5,803 $ 2,764 $ 15,876 $ 2,144,257 The following tables present total loans by category based on their assigned risk ratings determined by management as of December 31: December 31, 2019 Pass Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 267,645 $ 27,114 $ 12,416 $ — $ 307,175 Agricultural and farmland 180,735 12,267 14,774 — 207,776 Commercial real estate - owner occupied 198,710 21,745 10,707 — 231,162 Commercial real estate - non-owner occupied 531,694 46,092 1,971 — 579,757 Multi-family 175,807 1,771 1,495 — 179,073 Construction and land development 217,120 3,582 4,185 — 224,887 One-to-four family residential 287,036 13,546 12,998 — 313,580 Municipal, consumer, and other 106,063 479 13,874 — 120,416 Total $ 1,964,810 $ 126,596 $ 72,420 $ — $ 2,163,826 December 31, 2018 Pass Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 315,815 $ 35,176 $ 9,510 $ — $ 360,501 Agricultural and farmland 185,598 12,116 12,161 — 209,875 Commercial real estate - owner occupied 217,017 17,845 20,212 — 255,074 Commercial real estate - non-owner occupied 486,859 39,231 7,820 — 533,910 Multi-family 131,583 2,468 1,874 — 135,925 Construction and land development 227,775 5,663 3,837 — 237,275 One-to-four family residential 282,704 14,599 15,805 — 313,108 Municipal, consumer, and other 97,668 497 424 — 98,589 Total $ 1,945,019 $ 127,595 $ 71,643 $ — $ 2,144,257 The following tables present the financial effect of troubled debt restructurings for the years ended December 31: Charge-offs Recorded Investment and Specific Year Ended December 31, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 2 392 392 — Commercial real estate - owner occupied 1 170 170 — One-to-four family residential 1 21 21 — Total 7 $ 1,099 $ 1,099 $ — Charge-offs Recorded Investment and Specific Year Ended December 31, 2018 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 2 $ 296 $ 296 $ 157 Agricultural and farmland 1 171 171 — Commercial real estate - owner occupied 2 5,173 5,189 47 One-to-four family residential 4 1,230 1,255 480 Total 9 $ 6,870 $ 6,911 $ 684 Charge-offs Recorded Investment and Specific Year Ended December 31, 2017 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 4 $ 659 $ 659 $ 165 Commercial real estate - owner occupied 4 613 613 — Commercial real estate - non-owner occupied 4 2,954 2,281 674 One-to-four family residential 4 350 350 52 Total 16 $ 4,576 $ 3,903 $ 891 During the years ended December 31, 2019, 2018, and 2017, all troubled debt restructurings were the result of a payment concession. The following table presents the recorded investment of troubled debt restructurings which had subsequent payment defaults within 12 months following the modification as of December 31: December 31, December 31, December 31, 2019 2018 2017 (dollars in thousands) Commercial and industrial $ — $ 47 $ — Agricultural and farmland 98 166 — Commercial real estate - owner occupied — 172 — One-to-four family residential — 542 — Total $ 98 $ 927 $ — For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal or were on nonaccrual status subsequent to restructuring. As of December 31, 2019 and 2018, the Company had $9,315,000 and $13,362,000 of troubled debt restructurings, respectively. Restructured loans are evaluated for impairment quarterly as part of the Company’s determination of the allowance for loan losses. There were no material commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings. Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows for the years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 2,101 $ 2,723 $ 3,647 Reclassification from non-accretable difference 822 2,092 4,061 Accretion income (1,261) (2,714) (4,985) Ending balance $ 1,662 $ 2,101 $ 2,723

LOAN SERVICING

LOAN SERVICING	12 Months Ended
	Dec. 31, 2019
LOAN SERVICING
LOAN SERVICING	NOTE 5 – LOAN SERVICING Mortgage loans serviced for others, not included in the accompanying consolidated balance sheets, amounted to $1,152,535,000 and $1,229,953,000 as of December 31, 2019 and 2018, respectively. Activity in mortgage servicing rights is as follows for years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 10,918 $ 10,289 $ 10,604 Capitalized servicing rights 1,018 885 1,049 Fair value adjustment (3,418) (256) (1,364) Ending balance $ 8,518 $ 10,918 $ 10,289

BANK PREMISES AND EQUIPMENT

BANK PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2019
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT	NOTE 6 – BANK PREMISES AND EQUIPMENT Bank premises and equipment are stated at cost less accumulated depreciation as of December 31 as follows: 2019 2018 (dollars in thousands) Land, buildings, and improvements $ 75,878 $ 75,168 Furniture, fixtures, and equipment 21,200 20,265 97,078 95,433 Less accumulated depreciation 43,091 40,697 Total bank premises and equipment, net $ 53,987 $ 54,736 Depreciation expense by category for the years ended December 31 is as follows: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Buildings and improvements $ 1,813 $ 2,107 $ 1,908 Furniture, fixtures, and equipment 896 1,112 1,384 Total depreciation expense $ 2,709 $ 3,219 $ 3,292

FORECLOSED ASSETS

FORECLOSED ASSETS	12 Months Ended
	Dec. 31, 2019
FORECLOSED ASSETS
FORECLOSED ASSETS	NOTE 7 – FORECLOSED ASSETS Foreclosed assets activity is as follows for the years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 9,559 $ 16,545 $ 16,224 Transfers from loans 2,520 2,518 10,212 Capitalized improvements 41 — — Proceeds from sales (5,460) (6,851) (9,049) Sales through loan origination (2,046) (1,220) (150) Net gain (loss) on sales 1,048 (268) 1,727 Direct write-downs (563) (1,165) (2,419) Ending balance $ 5,099 $ 9,559 $ 16,545 Gains (losses) on foreclosed assets includes the following for the years ended December 31: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Direct write-downs $ (563) $ (1,165) $ (2,419) Net gain (loss) on sales 1,048 (268) 1,727 Guarantee reimbursements 80 — — Gain on settlement 375 — — Gain on foreclosure — 96 974 Gains (losses) on foreclosed assets $ 940 $ (1,337) $ 282 The carrying value of foreclosed one-to-four family residential real estate property as of December 31, 2019 and 2018, was $1,037,000 and $2,558,000, respectively. As of December 31, 2019, there were 10 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $588,000. As of December 31, 2018, there were 14 residential real estate loans in the process of foreclosure totaling approximately $1,097,000.

CORE DEPOSIT INTANGIBLE ASSETS

CORE DEPOSIT INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2019
CORE DEPOSIT INTANGIBLE ASSETS
CORE DEPOSIT INTANGIBLE ASSETS	NOTE 8 – CORE DEPOSIT INTANGIBLE ASSETS Core deposit intangible assets as of December 31 are as follows: 2019 2018 (dollars in thousands) Gross carrying amount $ 21,718 $ 21,718 Accumulated amortization (17,688) (16,265) Core deposit intangible assets, net $ 4,030 $ 5,453 Amortization of core deposit intangible assets for the years subsequent to December 31, 2019 is expected to be as follows (dollars in thousands): Year ended December 31, 2020 $ 1,232 2021 1,047 2022 852 2023 330 2024 316 Thereafter 253 Total $ 4,030

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2019
DEPOSITS
DEPOSITS	NOTE 9 – DEPOSITS The Company’s interest-bearing deposits are summarized below as December 31: December 31, 2019 December 31, 2018 (dollars in thousands) Interest-bearing demand $ 814,639 $ 856,919 Money market 477,765 427,730 Savings 438,927 421,698 Time 356,408 424,747 Total interest-bearing deposits $ 2,087,739 $ 2,131,094 Money market deposits include $14,309,000 and $20,512,000 of reciprocal transaction deposits as of December 31, 2019 and 2018, respectively. Time deposits include $3,538,000 and $4,895,000 of reciprocal time deposits as of December 31, 2019 and 2018, respectively. The aggregate amounts of time deposits in denominations of $250,000 or more amounted to $44,754,000 and $36,875,000 as of December 31, 2019 and 2018, respectively. The aggregate amounts of time deposits in denominations of $100,000 or more amounted to $130,293,000 and $153,717,000 as of December 31, 2019 and 2018, respectively. At December 31, 2019, the scheduled maturities of time deposits are as follows (dollars in thousands): Year ended December 31, 2020 $ 257,937 2021 58,929 2022 23,423 2023 8,926 2024 7,023 Thereafter 170 Total $ 356,408 Deposits of related parties amounted to $11,949,000 and $12,717,000 as of December 31, 2019 and 2018, respectively. The components of interest expense on deposits for the years ended December 31 are as follows: Year Ended December 31, 2019 2018 2017 (dollars in thousands) Interest-bearing demand $ 1,474 $ 1,378 $ 908 Money market 1,837 685 704 Savings 278 283 293 Time 4,343 3,541 3,054 Total interest expense on deposits $ 7,932 $ 5,887 $ 4,959

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	12 Months Ended
	Dec. 31, 2019
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	NOTE 10 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE All repurchase agreements are sweep instruments. The securities underlying the agreements as of December 31, 2019 and 2018 were under the Company’s control in safekeeping at third-party financial institutions, and included securities available-for-sale. Information pertaining to securities sold under agreements to repurchase as of December 31 is as follows: 2019 2018 (dollars in thousands) Balance at end of year $ 44,433 $ 46,195 Weighted average rate as of end of year 0.20 % 0.12 % Fair value of securities underlying the agreements $ 57,760 $ 61,092 Carrying value of securities underlying the agreements $ 57,760 $ 61,092

BORROWINGS

BORROWINGS	12 Months Ended
	Dec. 31, 2019
BORROWINGS
BORROWINGS	NOTE 11 – BORROWINGS There were no Federal Home Loan Bank of Chicago (FHLB) borrowings outstanding as of December 31, 2019 and 2018. Available borrowings from the FHLB are secured by FHLB stock held by the Company and pledged security in the form of qualifying loans. The total amount of loans pledged as of December 31, 2019 and 2018 was $548,229,000 and $538,537,000, respectively. As of December 31, 2019 and 2018, loans pledged also served as collateral for credit exposure of approximately $355,000 associated with the Banks’ participation in the FHLB’s Mortgage Partnership Finance Program. The Banks also have available a line of credit from the FHLB with available borrowings based on the collateral pledged. There was no outstanding balance under the line of credit as of December 31, 2019 and 2018. The line, when drawn upon, is due on demand and bears interest at a variable rate. State Bank of Lincoln also has available a line of credit from the Federal Reserve Bank of Chicago (FRB) with available borrowings based on the collateral pledged. As of December 31, 2019 and 2018, the carrying value of securities pledged amounted to $515,000 and $490,000, respectively. There was no outstanding balance under the line of credit as of December 31, 2019 and 2018. The line, when drawn upon, is due on demand and bears interest at a variable rate.

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	12 Months Ended
	Dec. 31, 2019
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES	NOTE 12 – SUBORDINATED DEBENTURES Five subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. The Company owns all of the outstanding stock of the five subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“debentures”) issued by the Company. These debentures are the only assets of the trusts and the interest payments from the debentures finance the distributions paid on the capital securities. The debentures are unsecured and rank junior and subordinate in the right of payment to all senior debt of the Company. The trusts are not consolidated in the Company’s financial statements. The carrying value of subordinated debentures are summarized as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 4,591 4,525 Total $ 37,583 $ 37,517 The National Bancorp Statutory Trust I debenture was assumed through a business combination and has a contractual obligation of $5,773,000. The interest rates on the subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date immediately preceding each Distribution Payment Date specific to each subordinated debenture, plus a fixed percentage. The interest rates and maturities of the subordinated debentures are summarized as follows: Interest Rate at Variable December 31, December 31, Maturity Interest Rate 2019 2018 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 4.74 % 5.19 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 3.42 4.32 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 3.24 4.14 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 4.79 5.24 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 4.79 5.69 December 31, 2037 The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events in default, to defer payments of interest on the debentures at any time by extending the interest payment period for a period not exceeding 10 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. The capital securities are subject to mandatory redemption upon payment of the debentures and carry an interest rate identical to that of the related debenture. The debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the debentures or the capital securities. If the debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the debentures to be distributed to the holders of the capital securities in liquidation of such trusts. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of December 31, 2019 and 2018, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative financial instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s variable-rate borrowings and variable-rate loans. The derivatives and hedge accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. In accordance with this guidance, the Company designated certain interest rate swaps on variable-rate borrowings and variable-rate loans as cash flow hedges. The gain or loss on interest rate swaps designated as cash flow hedging instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. During the years ended December 31, 2017 and 2018 and the three months ended March 31, 2019, the Company had an interest rate swap contract with a notional amount of $10,000,000 designated as a cash flow hedge on variable-rate loans. Beginning April 1, 2019, this hedging relationship was no longer considered highly effective, and the Company discontinued hedge accounting. In accordance with hedge accounting guidance, the net unrealized gain associated with the discontinued hedging relationship, recorded within accumulated other comprehensive income, will be reclassified into earnings as the hedged forecasted transactions affect earnings, through April 7, 2020. On June 25, 2019, the Company cancelled the interest rate swap agreement and received $174,000 to settle the financial instrument. As of December 31, 2019, the remaining unrealized gain recognized as a component of accumulated other comprehensive income was $52,000. As of December 31, 2019, the Company also had interest rate swap contracts with a total notional amount of $17,000,000 designated as a cash flow hedge on variable-rate borrowings. As of December 31, 2019, these interest rate swap contracts had contractual maturities between 2024 and 2025. As of December 31, 2019, the Company had cash pledged of $710,000, held on deposit at counterparties. The Company also entered into interest rate swap contracts with several borrowers on variable-rate loans, on which the Company has offsetting interest rate swap contracts. These interest rate swap contracts with borrowers have a total notional value of $138,356,000 and $112,947,000 as of December 31, 2019 and 2018, respectively, and the offsetting interest rate swap contracts entered into by the Company have a total notional value of $138,356,000 and $112,947,000 as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the interest rate swap contracts with borrowers on variable-rate loans had contractual maturities between 2022 and 2042. As of December 31, 2019 and 2018, the Company had $8,713,000 and $589,000, respectively, of securities pledged and held in safekeeping at the counterparty. While these interest rate swap derivatives generally worked together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. As of December 31, the fair values of the Company’s derivative instrument assets and liabilities related to interest rate swap contracts are summarized as follows: December 31, 2019 December 31, 2018 Designated as cash flow hedges: (dollars in thousands) Fair value recorded in other assets $ — $ 151 Fair value recorded in other liabilities (676) — Total $ (676) $ 151 Not designated as hedging instruments: Fair value recorded in other assets $ 8,642 $ 3,074 Fair value recorded in other liabilities (8,642) (3,074) Total $ — $ — For the years ended December 31, the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income are summarized as follows: Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Year Ended December 31, 2019 2018 2017 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ 116 $ 175 $ 275 Subordinated debentures interest expense (29) — (108) Total $ 87 $ 175 $ 167 For the years ended December 31, the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows: Year Ended December 31, 2019 2018 2017 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 13,537 $ 1,758 $ 1,468 Gross losses (13,500) (1,758) (1,468) Net gains (losses) $ 37 $ — $ —

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 14 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the activity and accumulated balances for components of other comprehensive income (loss) for the years ended December 31: Unrealized Gains (Losses) on Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Balance, December 31, 2016 $ (511) $ 897 $ 603 $ 989 Other comprehensive income (loss) before reclassifications (2,052) — (27) (2,079) Reclassifications 1,275 (393) (167) 715 Other comprehensive income (loss) (777) (393) (194) (1,364) Balance, December 31, 2017 (1,288) 504 409 (375) Adoption of ASU 2016-01 (122) — — (122) Other comprehensive income (loss) before reclassifications (5,692) — (83) (5,775) Reclassifications 2,541 (382) (175) 1,984 Other comprehensive loss (3,151) (382) (258) (3,791) Balance, December 31, 2018 (4,561) 122 151 (4,288) Other comprehensive income (loss) before reclassifications 12,458 — (698) 11,760 Reclassifications — (264) (87) (351) Other comprehensive income (loss), before tax 12,458 (264) (785) 11,409 Income tax expense (benefit) (762) (11) 62 (711) Other comprehensive income (loss), after tax 13,220 (253) (847) 12,120 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832 The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains (losses) on securities available-for-sale are included in gain (loss) on securities in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains on securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for the fair value of derivative instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 13 for additional information.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
INCOME TAXES	NOTE 15 – INCOME TAXES Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 will only reflect an effective state income tax rate. In connection with the conversion of tax status, the Company recognized a deferred tax asset of $534,000 and an income tax benefit of $534,000. In recording the impact of the conversion to a C Corporation, the Company recorded a deferred income tax expense of $2,741,000 related to the unrealized gains (losses) on securities and derivatives, through the income statement in accordance with ASC 740-20-45-8; therefore, the amount shown in other comprehensive income has not been reduced by the above expense. This difference will remain in accumulated other comprehensive income until the underlying securities are sold or mature and the underlying cash flow hedging relationships terminate in accordance with the portfolio approach allowed under ASC 740. Allocation of income tax expense between current and deferred portions for the years ended December 31 is as follows: 2019 2018 2017 (dollars in thousands) Current Federal $ 4,849 $ — $ — State 3,102 869 870 Total current 7,951 869 870 Deferred Federal (1,437) — — State (724) — — Change in tax status (534) — — Total deferred (2,695) — — Income tax expense $ 5,256 $ 869 $ 870 Income tax expense differs from the statutory federal rate for the years ended December 31 due to the following: 2019 2018 2017 Amount Percentage Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 3,933 5.5 % $ — — % $ — — % Increase (decrease) resulting from: State taxes, net of federal benefit 2,212 3.1 869 1.3 870 1.5 Change in tax status (534) (0.8) — — — — Other (355) (0.5) — — — — Income tax expense $ 5,256 7.3 % $ 869 1.3 % $ 870 1.5 % The components of the net deferred tax asset as of December 31, 2019 are as follows (dollars in thousands): Deferred tax assets Allowance for loan losses $ 6,309 Compensation related 5,859 Nonaccrual interest 858 Foreclosed assets 574 Goodwill 531 Other 1,282 Total deferred tax assets 15,413 Deferred tax liabilities Fixed asset depreciation 4,201 Mortgage servicing rights 2,428 Other purchase accounting adjustments 1,356 Intangible assets 841 Prepaid assets 504 Net unrealized gain on securities available-for-sale 2,251 Other 426 Total deferred tax liabilities 12,007 Net deferred tax asset $ 3,406 Prior to the Company becoming a taxable entity (C Corporation) on October 11, 2019, the Company’s deferred tax assets and liabilities were not considered material.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE 16 – EMPLOYEE BENEFIT PLANS During the years ended December 31, 2019, 2018, and 2017, the Company’s profit-sharing plan contribution expense amounted to $1,223,000, $1,109,000, and $920,000, respectively. Matching contributions vest to employees ratably over a six-year period. The Company is partially self-insured for medical claims filed by its employees. As of December 31, 2019 and 2018, the Company’s maximum aggregate liability under the plan was $6,194,000 and $6,017,000, respectively. The individual stop loss coverage was $130,000 per covered person each year. As of December 31, 2019 and 2018, there were 566 and 570, respectively, participants in the plan. During the years ended December 31, 2019, 2018, and 2017, the Company paid out claims and administrative service fees of approximately $5,638,000, $6,139,000, and $6,178,000, respectively. The Company maintained a supplemental executive retirement plan (the SERP) for certain key executive officers. The SERP benefit payments were scheduled to be paid in equal monthly installments over 30 years. In June 2019, the Company approved termination of the SERP agreements, and each participant will receive a lump sum payment equal to the present value of any remaining installment payments, payable in June 2020. As of December 31, 2019 and 2018, the deferred compensation liability for the SERP was $12,789,000 and $9,179,000, respectively. During the years ended December 31, 2019, 2018, and 2017, the Company recognized deferred compensation expense for the SERP of $4,291,000, $505,000, and $514,000, respectively.

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2019
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS	NOTE 17 – STOCK-BASED COMPENSATION PLANS The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares. Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of common stock, following the completion of the requisite service period. Units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date. On January 28, 2020, the Company granted 70,400 restricted stock units to certain key employees which vest in four equal annual installments beginning on February 1, 2021. On January 28, 2020, the Company also granted 2,750 restricted stock units to non-employee directors which vest on February 1, 2021. Stock Appreciation Rights A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights units are classified as liabilities. Prior to becoming a public entity, the liability was based on the intrinsic value of the stock appreciation rights, calculated using the grant date assigned value and an independent appraisal of the Company’s stock price that was subject to approval by the Board of Directors. Since becoming a public entity on October 11, 2019, the liability was based on an option-pricing model used to estimate the fair value of the stock appreciation rights. On September 1, 2019, the Company granted 110,160 stock appreciation rights to certain key employees, at a grant date assigned value of $25.75 per stock appreciation right, subsequently adjusted to $16.32, reflecting a decrease per stock appreciation right equal to the $9.43 per share special dividend paid to shareholders of record prior to the initial public offering. Of the stock appreciation rights granted on September 1, 2019, 79,560 stock appreciation rights were fully vested on the grant date and 30,600 stock appreciation rights vest in four equal annual installments beginning on September 1, 2020. As of December 31, 2019 and 2018, the liability recorded for outstanding stock appreciation rights was $409,000 and $1,884,000, respectively. During the years ended December 31, 2019, 2018, and 2017, the Company recognized $343,000, $540,000, and $291,000 as compensation expense, respectively. As of December 31, 2019, unrecognized compensation cost related to non-vested stock appreciation rights units was $140,000. As of December 31, 2018, there was no unrecognized compensation cost related to non-vested stock-based compensation agreements. As of December 31, 2019, the liability recorded for previously exercised stock appreciation rights was $1,512,000, which will be paid in five remaining equal annual installments beginning in 2020. As of December 31, 2018, the liability recorded for previously exercised units was $176,000 and was paid in 2019. A summary of the status of stock appreciation rights as of December 31, 2019 and 2018, and changes during the years ended December 31, 2019, 2018, and 2017 is as follows: Stock Appreciation Rights Weighted Average Outstanding, December 31, 2016 116,280 $ 5.66 Granted — — Exercised — — Forfeited — — Outstanding, December 31, 2017 116,280 $ 5.66 Granted — — Exercised (24,480) 5.43 Forfeited — — Outstanding, December 31, 2018 91,800 $ 5.73 Granted 110,160 16.32 Exercised (91,800) 5.73 Forfeited — — Outstanding, December 31, 2019 110,160 $ 16.32 Exercisable, December 31, 2019 79,560 $ 16.32 Exercisable, December 31, 2018 91,800 $ 5.73 A further summary of outstanding stock appreciation rights as of December 31, 2019, is as follows: Weighted Average Remaining Range of Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 110,160 79,560 9.7 years

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2019
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 18 – REGULATORY MATTERS The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. As allowed under the new regulations, the Banks and Company elected to exclude accumulated other comprehensive income, including unrealized gains and losses on securities, in the computation of regulatory capital. The ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Banks to pay dividends to the Company. The Banks are subject to certain statutory and regulatory restrictions on the amount it may pay in dividends. Under the Basel III regulations, a capital conservation buffer calculation will phase in over five years which limits allowable bank dividends if regulatory capital ratios fall below specific thresholds. As of December 31, 2019 and 2018, the capital conservation buffer was 2.5% and 1.875%, respectively. HBT Financial, Inc. (on a consolidated basis) and the Banks are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consodliated financial statements of HBT Financial, Inc. and the Banks. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, HBT Financial, Inc. and the Banks must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Management believes, as of December 31, 2019 and 2018, that HBT Financial, Inc. and the Banks each met all capital adequacy requirements to which they are subject. The actual and required capital amounts and ratios of HBT Financial, Inc. (consolidated) and the Banks are as follows: Actual For Capital To Be Well December 31, 2019 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,994 % $ 196,358 8.00 % N/A N/A Heartland Bank 315,516 180,071 8.00 $ 225,088 10.00 % State Bank of Lincoln 35,390 16,104 8.00 20,130 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 147,268 6.00 % N/A N/A Heartland Bank 295,385 135,053 6.00 $ 180,071 8.00 % State Bank of Lincoln 33,222 12,078 6.00 16,104 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 298,277 % $ 110,451 4.50 % N/A N/A Heartland Bank 295,385 101,290 4.50 $ 146,307 6.50 % State Bank of Lincoln 33,222 9,058 4.50 13,084 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 129,027 4.00 % N/A N/A Heartland Bank 295,385 115,281 4.00 $ 144,102 5.00 % State Bank of Lincoln 33,222 13,531 4.00 16,914 5.00 Actual For Capital To Be Well December 31, 2018 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 372,472 % $ 198,730 8.00 % N/A N/A Heartland Bank 332,391 184,127 8.00 $ 230,159 10.00 % State Bank of Lincoln 38,059 14,488 8.00 18,110 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 351,963 % $ 149,047 6.00 % N/A N/A Heartland Bank 313,406 138,095 6.00 $ 184,127 8.00 % State Bank of Lincoln 36,535 10,866 6.00 14,488 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 315,611 % $ 111,785 4.50 % N/A N/A Heartland Bank 313,406 103,572 4.50 $ 149,603 6.50 % State Bank of Lincoln 36,535 8,150 4.50 11,772 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 351,963 % $ 130,393 4.00 % N/A N/A Heartland Bank 313,406 113,668 4.00 $ 142,085 5.00 % State Bank of Lincoln 36,535 14,319 4.00 17,899 5.00

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 19 – FAIR VALUE OF FINANCIAL INSTRUMENTS Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Additional information on fair value measurements are summarized in Note 1. There were no transfers between levels during the years ended December 31, 2019 and 2018. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. The following tables present the balances of the assets measured at fair value on a recurring basis as of December 31: December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities available-for-sale: U.S. government agency $ — $ 49,615 $ — $ 49,615 Municipal — 133,738 — 133,738 Mortgage-backed: Agency residential — 200,678 — 200,678 Agency commercial — 134,954 — 134,954 Corporate — 73,419 — 73,419 Equity securities with readily determinable fair values 3,241 — — 3,241 Mortgage servicing rights — — 8,518 8,518 Derivative financial assets — 8,642 — 8,642 Derivative financial liabilities — 9,318 — 9,318 December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities available-for-sale: U.S. government agency $ — $ 46,866 $ — $ 46,866 Municipal — 161,450 — 161,450 Mortgage-backed: Agency residential — 234,303 — 234,303 Agency commercial — 150,081 — 150,081 Private-label — 256 — 256 Corporate — 86,570 — 86,570 Equity securities with readily determinable fair values 3,081 — — 3,081 Mortgage servicing rights — — 10,918 10,918 Derivative financial assets — 3,225 — 3,225 Derivative financial liabilities — 3,074 — 3,074 The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. There were no changes to the valuation techniques from December 31, 2018 to December 31, 2019. Investment Securities When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income. Derivative Financial Instruments Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income. Mortgage Servicing Rights The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified in Level 3 of the fair value hierarchy. The change in fair value is recorded through an adjustment to the consolidated statement of income. The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 8,518 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 68.5% (12.3%) Discount rate 9.0% to 11.0% (9.0%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 10,918 Discounted cash flows Constant pre-payment rates (CPR) 7.5% to 87.6% (8.9%) Discount rate 9.0% to 11.0% (9.0%) Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present the balances of the assets measured at fair value on a nonrecurring basis as of December 31: December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 4,531 $ — $ 4,531 Collateral-dependent impaired loans — — 15,811 15,811 Bank premises held for sale — — 121 121 Foreclosed assets — — 5,099 5,099 December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 2,800 $ — $ 2,800 Collateral-dependent impaired loans — — 7,355 7,355 Bank premises held for sale — — 749 749 Foreclosed assets — — 9,559 9,559 Loans Held for Sale Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes indicate fair value of the held for sale loans is greater than cost. Collateral-dependent Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment was measured for loans which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of collateral-dependent impaired loans is estimated based on the fair value of the underlying collateral supporting the loan. Collateral-dependent impaired loans require classification in the fair value hierarchy. Impaired loans include loans acquired with deteriorated credit quality. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. Bank Premises Held for Sale Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of bank premises held for sale is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Collateral-Dependent Impaired Loans, Bank Premises Held for Sale, and Foreclosed Assets The estimated fair value of collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets is based on the appraised fair value of the collateral, less estimated costs to sell. Collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or a similar evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals or a similar evaluation of the collateral underlying collateral-dependent loans and foreclosed assets are obtained at the time a loan is first considered impaired or a loan is transferred to foreclosed assets. Appraisals or a similar evaluation of bank premises held for sale are obtained when first classified as held for sale. Appraisals or similar evaluations are obtained subsequently as deemed necessary by management but at least annually on foreclosed assets and bank premises held for sale. Appraisals are reviewed for accuracy and consistency by management. Appraisals are performed by individuals selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated costs to sell. These discounts and estimates are developed by management by comparison to historical results. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands). December 31, 2019 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 15,811 Appraisal of collateral Appraisal adjustments 20% to 40% (25%) Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 5,099 Appraisal Appraisal adjustments 7% (7%) December 31, 2018 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 7,355 Appraisal of collateral Appraisal adjustments 20% to 40% (25%) Bank premises held for sale 749 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 9,559 Appraisal Appraisal adjustments 7% (7%) Other Fair Value Methods The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments. Cash and Cash Equivalents The carrying amounts of these financial instruments approximate their fair values. Interest-bearing Time Deposits with Banks The carrying values of interest-bearing time deposits with banks approximate their fair values. Restricted Stock The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the market place. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Investments in Unconsolidated Subsidiaries The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts. Time Deposits Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits. Securities Sold Under Agreements to Repurchase The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts. Subordinated Debentures The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Accrued Interest The carrying amounts of accrued interest approximate fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument. The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31: Fair Value December 31, 2019 December 31, 2018 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 283,971 $ 283,971 $ 186,879 $ 186,879 Interest-bearing time deposits with banks Level 1 248 248 248 248 Securities held-to-maturity Level 2 88,477 90,529 121,715 121,506 Restricted stock Level 3 2,425 2,425 2,719 2,719 Loans, net Level 3 2,141,527 2,181,103 2,123,748 2,125,698 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 13,951 13,951 15,300 15,300 Financial liabilities: Time deposits Level 3 356,408 355,340 424,747 419,333 Securities sold under agreements to repurchase Level 2 44,433 44,433 46,195 46,195 Subordinated debentures Level 3 37,583 31,959 37,517 32,149 Accrued interest payable Level 2 1,132 1,132 1,207 1,207 The Company estimated the fair value of lending related commitments as described in Note 20 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 20 – COMMITMENTS AND CONTINGENCIES Financial Instruments The Banks are party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Banks’ exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Banks use the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments. Such commitments and conditional obligations were as follows as of December 31: Contractual Amount December 31, December 31, 2019 2018 (dollars in thousands) Commitments to extend credit $ 542,705 $ 524,112 Standby letters of credit 8,991 10,358 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Banks evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Banks upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties. Standby letters of credit are conditional commitments issued by the Banks to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Banks secure the standby letters of credit with the same collateral used to secure the related loan. Lease Commitments The Company leases office space under operating leases. Certain leases contain renewal options for periods from three to five years at their fair rental value at the time of renewal. Future minimum lease payments under these leases are as follows (dollars in thousands): Year ended December 31, 2020 $ 93 2021 86 2022 51 2023 21 2024 21 Thereafter 3 Total $ 275 Legal Contingencies Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements.

CONDENSED PARENT COMPANY ONLY F

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2019
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS	NOTE 21 – CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS Following are the condensed financial statements of HBT Financial, Inc. (Parent only). Condensed Parent Company Only Balance Sheets December 31 2019 2018 ASSETS (dollars in thousands) Cash and cash equivalents $ 4,978 $ 2,169 Investment in subsidiaries: Bank 363,860 375,194 Non-bank 1,201 1,251 Other assets 1,081 422 Total assets $ 371,120 $ 379,036 LIABILITIES Subordinated debentures $ 37,583 $ 37,517 Other liabilities 619 1,123 Total liabilities 38,202 38,640 STOCKHOLDERS' EQUITY 332,918 340,396 Total liabilities and stockholders' equity $ 371,120 $ 379,036 Condensed Parent Company Only Statements of Income Years ended December 31 2019 2018 2017 INCOME (dollars in thousands) Dividends received from subsidiaries: Bank $ 109,969 $ 44,446 $ 57,327 Non-bank 385 941 1,900 Undistributed earnings from subsidiaries: Bank (41,202) 23,239 (115) Non-bank (151) (1,984) (404) Other income 52 1 35 Total income 69,053 66,643 58,743 EXPENSES Interest expense 1,922 1,795 1,525 Other expense 1,025 1,085 1,134 Total expenses 2,947 2,880 2,659 INCOME BEFORE INCOME TAX BENEFIT 66,106 63,763 56,084 INCOME TAX BENEFIT (759) (36) (19) NET INCOME $ 66,865 $ 63,799 $ 56,103 Condensed Parent Company Only Statements of Cash Flows Year ended December 31 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES (dollars in thousands) Net income $ 66,865 $ 63,799 $ 56,103 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of consolidated subsidiaries 41,353 (21,255) 519 Amortization of subordinated debenture purchase accounting adjustment 66 66 65 Changes in other assets and liabilities, net (1,912) 700 306 Net cash provided by operating activities 106,372 43,310 56,993 CASH FLOWS FROM INVESTING ACTIVITIES Capital contribution to bank subsidiary (17,000) — — Capital contribution to non-bank subsidiary (100) — — Net cash used in investing activities (17,100) — — CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock 138,493 — — Repurchase of common stock — (907) — Cash dividends (224,956) (42,621) (57,069) Net cash used in financing activities (86,463) (43,528) (57,069) NET CHANGE IN CASH AND EQUIVALENTS 2,809 (218) (76) CASH AND CASH EQUIVALENTS Beginning of year 2,169 2,387 2,463 End of year $ 4,978 $ 2,169 $ 2,387

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Initial Public Offering	Initial Public Offering On September 13, 2019, the Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission (SEC). The Registration Statement was declared effective by the SEC on October 10, 2019. The Company issued and sold 9,429,794 shares of common stock at a price of $16 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were $138,493,000. The proceeds were used to fund a $170 million special dividend, or $9.43 per share, to stockholders of record prior to the initial public offering. The Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (JOBS Act). Under the JOBS Act, emerging growth companies may also elect to delay adoption of new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards and, therefore, the Company will not be subject to the same new or revised accounting standards as other public companies.
Basis of Consolidation	Basis of Consolidation The consolidated financial statements of HBT Financial, Inc. include the accounts of the Company and its wholly owned bank subsidiaries, Heartland Bank and Trust Company (Heartland Bank) and State Bank of Lincoln. Heartland Bank and State Bank of Lincoln are collectively referred to as “the Banks”. The Company also has five wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B, Heartland Bancorp, Inc. Capital Trust C, Heartland Bancorp, Inc. Capital Trust D, FFBI Capital Trust I, and National Bancorp Statutory Trust I, which are not consolidated, in accordance with GAAP, as more fully described in Note 12. Significant intercompany transactions and accounts have been eliminated in consolidation.
Unaudited Pro Forma Income Statement Information	Unaudited Pro Forma Income Statement Information Effective October 11, 2019, the Company revoked its S Corporation status and became a taxable entity (C Corporation). As such any periods prior to October 11, 2019 will only reflect state replacement taxes. The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the years ended December 31, 2019, 2018, and 2017. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the years ended December 31, 2019, 2018, and 2017. The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during the years ended December 31, 2019, 2018, and 2017, therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same.
Sale of First Community Title Services, Inc.	Sale of First Community Title Services, Inc. On February 15, 2019, the Company consummated an agreement to sell substantially all assets and liabilities of First Community Title Services, Inc. to Illinois Real Estate Title Center, LLC, an Illinois limited liability company, for a combination of cash and an equity interest in Illinois Real Estate Title Center, LLC representing total consideration of approximately $498,000.
Use of Estimates	Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and income taxes.
Business and Significant Concentrations of Credit Risk	Business and Significant Concentrations of Credit Risk The Company provides several types of loans to individuals and businesses primarily located in their customer service areas. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Banks are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificate of deposit accounts.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net.
Interest-Bearing Time Deposits with Banks	Interest-Bearing Time Deposits with Banks Interest-bearing time deposits with banks are carried at cost.
Debt Securities	Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. There were no such transfers in 2019, 2018 and 2017. Declines in the fair value of individual securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the intent of the Company to not sell the security or whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other-than-temporary is recorded as a loss in noninterest income.
Equity Securities	Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in gains (losses) on securities on the statements of income. The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
Restricted Stock	Restricted Stock Restricted stock, consisting of Federal Home Loan Bank of Chicago (FHLB) stock, is carried at cost and evaluated for impairment. The Company’s investment in FHLB stock amounted to $2,425,000 and $2,719,000 as of December 31, 2019 and 2018, respectively.
Loans Held for Sale	Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses, deferred loan fees or costs on originated loans, and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for loan losses if accrued in a prior year. Amortization of related deferred loan fees or costs is also suspended at this time. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. As of December 31, 2019 and 2018, loans to directors, executive officers, principal shareholders and their affiliated entities (related parties) amounted to $4,162,000 and $830,000, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses (allowance) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance. Loan losses are charged off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The allowance consists of two primary components, general reserves and specific reserves related to impaired loans. The general component covers non-impaired loans and is based on historical losses adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 16‑quarter period. This actual loss experience is adjusted for qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. These qualitative factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company generally measures impairment based on the fair value of the collateral, but also may use the present value of expected future cash flows discounted at the original contractual interest rate, when practical. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. In general, if the Company grants a TDR that involves either the absence of principal amortization or a material extension of an existing loan amortization period in excess of our underwriting standards, the loan will be placed on nonaccrual status. However, if a TDR is well secured by an abundance of collateral and the collectability of both interest and principal is probable, the loan may remain on accrual status. A nonaccrual TDR in full compliance with the payment requirements specified in the loan modification for at least six months may return to accrual status, if the collectability of both principal and interest is probable. All TDRs are individually evaluated for impairment. The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $500,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows: Pass : A Pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. Watch : A Watch loan is not a classified asset, but reflects a borrower that exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant classification. Substandard : A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms. Doubtful : A Doubtful loan has all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer and other, with risk characteristics described as follows: Commercial and Industrial : Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Agricultural and Farmland : Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. Economic trends influenced by unemployment rates and other key economic indicators are not closely correlated to the credit quality of agricultural and farmland loans. The credit quality of these loans is most correlated to changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Commercial Real Estate - Owner Occupied : Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied : Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. Commercial real estate – non-owner occupied are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments or an overbuilt market typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties impact the credit quality of these loans. Multi-family : Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. Construction and Land Development : Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. One-to-four Family Residential : Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Municipal, Consumer and Other : Loans to municipalities are primarily federally tax-exempt. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to other financial institutions, as well as leases, are also included. Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators review the adequacy of the allowance and may require additions to the allowance based on their judgment about information available at the time of their examinations.
Loans Acquired with Deteriorated Credit Quality	Loans Acquired with Deteriorated Credit Quality Loans acquired that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Loans are evaluated by management at the time of purchase to determine if there is evidence of deterioration in credit quality since origination. Loans where there is evidence of deterioration of credit quality since origination may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable yield with a positive impact on interest income on a prospective basis. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost recovery method or cash basis method of income recognition.
Off-Balance Sheet Credit Related Financial Instruments	Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Banks have entered into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2019 and 2018, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Other identifiable intangible assets consist of core deposit intangible assets with definite useful lives which are being amortized using straight-line and accelerated methods over 10 years. The Company will periodically review the status of core deposit intangible assets for any events or circumstances which may change the recoverability of the underlying basis.
Loan Servicing	Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income.
Bank Premises and Equipment	Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using straight-line and accelerated methods.
Bank Premises Held for Sale	Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. The bank premises are not depreciated while classified as held for sale. During the year ended December 31, 2017, the Company closed certain branch locations. As of December 31, 2019 and 2018, the related branch buildings classified as held for sale totaled $121,000 and $749,000, respectively. During the years ended December 31, 2019, 2018, and 2017, there were impairment losses of $37,000, $52,000, and $1,936,000, respectively, included in gains (losses) on other assets on the consolidated statements of income.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell.
FDIC Indemnification Asset and True-up Liability	FDIC Indemnification Asset and True-up Liability As a part of the Bank of Illinois (BOI) acquisition in 2010 and the Western Springs National Bank and Trust (WSNBT) acquisition in 2011, the Bank entered into loss-sharing agreements with the FDIC covering realized losses on loans and foreclosed assets. The BOI agreement included single family residential and non-single family residential loss-share agreements, while the WSNBT agreement only included a non-single family residential loss-share agreement. The single-family loss-share agreement had an original term of ten years and the non-single family residential loss-share agreement had an original term of eight years. The loss-sharing assets were measured separately from the loan portfolio because they were not contractually embedded in the loans and were not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition date were estimated based on projected cash flows for loss-sharing reimbursements and based on the credit adjustments estimated for each loan pool and the loss-sharing percentages. The loss-sharing assets were also separately measured from the related foreclosed real estate. Although these assets were contractual receivables from the FDIC, there were no contractual interest rates. On October 27, 2017, the loss-sharing agreements with the FDIC were terminated. As part of the termination agreement, the Company paid cash of $4,929,000 to the FDIC and also incurred a write-down of $459,000 which represented the remaining carrying value of the FDIC indemnification asset.
Wealth Management Assets and Fees	Wealth Management Assets and Fees Assets of the wealth management department of the Banks are not included in the consolidated balance sheets as they are not assets of the Company or Banks. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income.
Foreclosed Assets	Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for loan losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets, as well as expenses to maintain and hold foreclosed assets.
Employee Benefit Plans	Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. Participating employees are those employees in service on the valuation date who were employed on the last day of the plan year then ended, were on leave of absence on the last day of the plan year then ended, or any participant whose service was terminated during the plan year then ended due to retirement, disability, or death. A 401(k) feature also allows the Bank to make discretionary matching contributions in an amount up to 5% of compensation contributed by employees.
Supplemental Executive Retirement Plan	Supplemental Executive Retirement Plan Heartland Bank has a supplemental executive retirement plan (SERP) that provides retirement incentives for certain executive employees. The liabilities for these awards are included in other liabilities in the consolidated balance sheets. This is an unfunded plan. In June 2019, the Company approved termination of the SERP agreements, and each participant will receive a lump sum payment equal to the present value of any remaining installment payments, payable in June 2020.
Stock Based Compensation	Stock Based Compensation The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur.
Transfers of Financial Assets and Participating Interests	Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred.
Income Taxes	Income Taxes Through October 10, 2019, the Company, with the consent of its then current stockholders, elected to be taxed under sections of federal and state income tax law as an "S Corporation" which provides that, in lieu of Company income taxes, except for state replacement taxes, the stockholders separately account for their pro rata shares of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes, other than state replacement taxes, have been recognized in the accompanying consolidated financial statements. No provision has been made for any amounts which may be advanced or paid as dividends to the stockholders to assist them in paying their personal taxes on the income from the Company. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 will only reflect state replacement taxes. In connection with the conversion of tax status, the Company recognized a deferred tax asset of approximately $0.5 million and an income tax benefit of approximately $0.5 million. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2019 and 2018, there are no uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company files consolidated federal and state income tax returns. The Company is no longer subject to federal or state income tax examinations for years prior to 2016.
Derivative Financial Instruments	Derivative Financial Instruments As part of the Company’s asset/liability management, the Company uses interest rate swaps (swaps) to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities, or pools of assets or liabilities, and have high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability "cash flow" hedge. Changes in the fair value of a derivative that is highly effective as - and that is designated and qualifies as - a cash-flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash-flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. The Company discontinues hedge accounting prospectively when (a) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is dedesignated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the balance sheet, with subsequent changes in its fair value recognized in current-period earnings.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale and interest rate swap agreements designated as cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss).
Fair Value Measurements	Fair Value Measurements The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 - Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 - Inputs that are significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Inputs that are unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Accounting standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy and has not elected to measure any existing financial instruments at fair value, except for mortgage servicing rights; however, it may elect to measure newly acquired financial instruments at fair value in the future.
Revenue from Contracts with Customers	Revenue from Contracts with Customers ASC Topic 606, Revenue from Contracts with Customers , requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this new guidance are discussed below. Card income: Consists of debit and credit card interchange fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. Payment is typically received daily. Service charges on deposit accounts: Consists of deposit related fees such as account analysis fees, monthly service fees, and other related fees. The Company’s performance obligation is ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly. Wealth management fees: Consists of revenue from the management and advisement of client assets and trust administration. The Company’s performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually. Title insurance activity: Consists of fees related to real estate sale closings, title search fees, and title insurance premiums with First Community Title Services, Inc. acting as an agent. The Company’s performance obligations are generally satisfied and payment is typically received at the time a real estate transaction is finalized.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average shares of common stock outstanding during the year. There were no dilutive instruments outstanding during 2019, 2018, and 2017 therefore, diluted earnings per share is the same as basic earnings per share.
Segment Reporting	Segment Reporting The Company’s operations consist of one reportable segment called community banking. The operations of the non-bank subsidiaries of the Company primarily support the operations of the Banks. While the Company’s management monitors both bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.
Subsequent Events	Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued. Since December 2019, a strain of coronavirus (“COVID-19”) has spread globally including in the areas in which the Company and its customers operate. The COVID-19 pandemic has caused disruption of regional and global economic activity, emergency actions by the Federal Reserve and other U.S. governmental authorities, significant declines in interest rates and equity market valuations, heightened volatility in the financial markets, the shutdown of countries’ borders and directives for residents within the Company’s primary market area to stay at home or in their place of residence and for certain business to suspend some or all of their business activities. These actions have affected our operations and are expected to impact our financial results in 2020. As of the date of this filing, we anticipate that we will take actions to support our customers in a manner consistent with current guidance provided by Federal banking regulatory authorities. Future developments with respect to COVID-19 are highly uncertain and cannot be predicted and new information may emerge concerning the severity of the outbreak and the actions to contain the outbreak or treat its impact, among others. The extent to which the COVID-19 outbreak will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the outbreak and additional actions taken by governmental authorities to contain the financial and economic impact of the COVID-19 outbreak. Other national health concerns, including the outbreak of other contagious diseases or pandemics may adversely affect us in the future.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016‑02, Leases (Topic 842) . Under the new guidance in this ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee`s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance also simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. On January 1, 2019, the Company adopted this standard without a material impact on the Company’s results of operations or financial condition. See Note 20 for future minimum lease payments. In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016‑13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016‑13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016‑13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016‑13 is effective for years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position. In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the ASU, a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018‑13 removes, modifies, and adds certain disclosure requirements on fair value measurements. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2019
SECURITIES
Summary of carrying balances of securities	December 31, December 31, 2019 2018 (dollars in thousands) Securities available-for-sale $ 592,404 $ 679,526 Securities held-to-maturity 88,477 121,715 Equity securities: Readily determinable fair value 3,241 3,081 No readily determinable fair value 1,148 180 Total securities $ 685,270 $ 804,502
Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses	December 31, 2019 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 49,113 $ 529 $ (27) $ 49,615 Municipal 131,241 2,503 (6) 133,738 Mortgage-backed: Agency residential 198,184 2,780 (286) 200,678 Agency commercial 133,730 1,516 (292) 134,954 Corporate 72,239 1,180 — 73,419 Total $ 584,507 $ 8,508 $ (611) $ 592,404 December 31, 2018 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 46,977 $ 250 $ (361) $ 46,866 Municipal 161,957 761 (1,268) 161,450 Mortgage-backed: Agency residential 235,903 788 (2,388) 234,303 Agency commercial 151,878 285 (2,082) 150,081 Private-label 254 2 — 256 Corporate 87,118 207 (755) 86,570 Total $ 684,087 $ 2,293 $ (6,854) $ 679,526
Schedule of carrying value and fair value of securities held-to-maturity, with gross unrealized gains and losses	December 31, 2019 Amortized Gross Gross Fair Value Held-to-maturity: (dollars in thousands) Municipal $ 45,239 $ 1,340 $ — $ 46,579 Mortgage-backed: Agency residential 19,072 161 (170) 19,063 Agency commercial 24,166 775 (54) 24,887 Total $ 88,477 $ 2,276 $ (224) $ 90,529 December 31, 2018 Amortized Gross Gross Fair Value Held-to-maturity: (dollars in thousands) Municipal $ 73,176 $ 1,149 $ (42) $ 74,283 Mortgage-backed: Agency residential 23,192 — (998) 22,194 Agency commercial 25,347 177 (495) 25,029 Total $ 121,715 $ 1,326 $ (1,535) $ 121,506
Schedule of amortized cost and fair value of securities by contractual maturity	Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 49,357 $ 49,527 $ 752 $ 758 Due after 1 year through 5 years 115,487 117,484 31,309 32,238 Due after 5 years through 10 years 81,515 83,392 11,504 11,799 Due after 10 years 6,234 6,369 1,674 1,784 Mortgage-backed: Agency residential 198,184 200,678 19,072 19,063 Agency commercial 133,730 134,954 24,166 24,887 Total $ 584,507 $ 592,404 $ 88,477 $ 90,529
Schedule of sales of securities available-for-sale	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Proceeds from sales $ — 104,303 $ 51,500 Gross realized gains — 281 — Gross realized losses — (2,822) (1,275)
Schedule of gains (losses) on securities	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Net realized losses on sales $ — (2,541) $ (1,275) Net unrealized gains (losses) on equities: Readily determinable fair value 160 (122) — No readily determinable fair value (165) — — Gains (losses) on securities $ (5) (2,663) $ (1,275)
Schedule of gross unrealized losses and fair value of investments	Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2019 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (26) $ 18,865 $ (1) $ 1,998 $ (27) $ 20,863 Municipal (6) 894 — — (6) 894 Mortgage-backed: Agency residential (108) 25,563 (178) 27,296 (286) 52,859 Agency commercial (100) 20,056 (192) 15,704 (292) 35,760 Total $ (240) $ 65,378 $ (371) $ 44,998 $ (611) $ 110,376 Held-to-maturity: Mortgage-backed: Agency residential $ (30) $ 2,516 $ (140) $ 9,002 $ (170) $ 11,518 Agency commercial (47) 7,016 (7) 599 (54) 7,615 Total $ (77) $ 9,532 $ (147) $ 9,601 $ (224) $ 19,133 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2018 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (302) $ 19,079 $ (59) $ 7,938 $ (361) $ 27,017 Municipal (230) 31,034 (1,038) 59,702 (1,268) 90,736 Mortgage-backed: Agency residential (299) 40,864 (2,089) 99,967 (2,388) 140,831 Agency commercial (262) 35,462 (1,820) 81,899 (2,082) 117,361 Corporate (263) 20,734 (492) 39,054 (755) 59,788 Total $ (1,356) $ 147,173 $ (5,498) $ 288,560 $ (6,854) $ 435,733 Held-to-maturity: Municipal $ (32) $ 4,166 $ (10) $ 1,856 $ (42) $ 6,022 Mortgage-backed: Agency residential (59) 4,046 (939) 17,564 (998) 21,610 Agency commercial (67) 8,910 (428) 10,413 (495) 19,323 Total $ (158) $ 17,122 $ (1,377) $ 29,833 $ (1,535) $ 46,955

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Summary of Loans	December 31, December 31, 2019 2018 (dollars in thousands) Commercial and industrial $ 307,175 $ 360,501 Agricultural and farmland 207,776 209,875 Commercial real estate - owner occupied 231,162 255,074 Commercial real estate - non-owner occupied 579,757 533,910 Multi-family 179,073 135,925 Construction and land development 224,887 237,275 One-to-four family residential 313,580 313,108 Municipal, consumer, and other 120,416 98,589 Loans, before allowance for loan losses 2,163,826 2,144,257 Allowance for loan losses (22,299) (20,509) Loans, net of allowance for loan losses $ 2,141,527 $ 2,123,748
Schedule of activity in allowance for loan losses	The following tables detail activity in the allowance for loan losses for the years ended December 31: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2016 $ 4,870 $ 3,455 $ 1,622 $ 2,701 $ 1,282 $ 1,983 $ 2,720 $ 1,075 $ 19,708 Provision for loan losses 2,133 (1,067) (118) (243) (132) 1,474 376 716 3,139 Charge-offs (1,780) (3) (32) (940) (153) (503) (787) (818) (5,016) Recoveries 188 — 38 958 — 27 414 309 1,934 Balance, December 31, 2017 5,411 2,385 1,510 2,476 997 2,981 2,723 1,282 19,765 Provision for loan losses (532) 265 3,294 264 109 993 984 320 5,697 Charge-offs (1,446) — (2,352) (237) (194) (58) (1,415) (783) (6,485) Recoveries 315 — 54 141 — 260 490 272 1,532 Balance, December 31, 2018 3,748 2,650 2,506 2,644 912 4,176 2,782 1,091 20,509 Provision for loan losses 1,139 146 (376) 1,110 153 (1,640) 513 2,359 3,404 Charge-offs (886) (30) (407) (111) (41) (9) (1,105) (684) (3,273) Recoveries 440 — 56 20 — 450 350 343 1,659 Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 The following tables present the recorded investments in loans and the allowance for loan losses by category as of December 31: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 294,006 $ 192,722 $ 211,744 $ 561,277 $ 176,273 $ 217,708 $ 291,624 $ 106,448 $ 2,051,802 Individually evaluated for impairment 10,733 13,966 10,927 3,398 1,324 3,782 11,349 13,872 69,351 Acquired with deteriorated credit quality 2,436 1,088 8,491 15,082 1,476 3,397 10,607 96 42,673 Total $ 307,175 $ 207,776 $ 231,162 $ 579,757 $ 179,073 $ 224,887 $ 313,580 $ 120,416 $ 2,163,826 Allowance for loan losses: Collectively evaluated for impairment $ 1,926 $ 2,576 $ 1,486 $ 3,591 $ 1,019 $ 2,283 $ 1,684 $ 931 $ 15,496 Individually evaluated for impairment 2,170 105 270 70 — 567 822 2,176 6,180 Acquired with deteriorated credit quality 345 85 23 2 5 127 34 2 623 Total $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2018 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 350,435 $ 197,414 $ 226,068 $ 504,368 $ 132,379 $ 229,626 $ 287,173 $ 98,059 $ 2,025,522 Individually evaluated for impairment 7,488 11,295 19,202 7,820 1,678 3,331 12,837 416 64,067 Acquired with deteriorated credit quality 2,578 1,166 9,804 21,722 1,868 4,318 13,098 114 54,668 Total $ 360,501 $ 209,875 $ 255,074 $ 533,910 $ 135,925 $ 237,275 $ 313,108 $ 98,589 $ 2,144,257 Allowance for loan losses: Collectively evaluated for impairment $ 2,188 $ 2,611 $ 1,423 $ 2,566 $ 640 $ 2,024 $ 1,464 $ 1,024 $ 13,940 Individually evaluated for impairment 1,554 39 1,066 73 267 1,714 1,265 67 6,045 Acquired with deteriorated credit quality 6 — 17 5 5 438 53 — 524 Total $ 3,748 $ 2,650 $ 2,506 $ 2,644 $ 912 $ 4,176 $ 2,782 $ 1,091 $ 20,509
Schedule of loans individually evaluated for impairment by category	Unpaid Average Interest Principal Recorded Related Recorded Income December 31, 2019 Balance Investment Allowance Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 4,292 $ 4,292 $ 2,170 $ 5,275 $ 152 Agricultural and farmland 590 590 105 464 12 Commercial real estate - owner occupied 830 830 270 874 43 Commercial real estate - non-owner occupied 99 99 70 101 7 Multi-family — — — — — Construction and land development 3,679 3,679 567 3,988 171 One-to-four family residential 3,401 3,390 822 3,414 79 Municipal, consumer, and other 9,138 9,111 2,176 9,284 396 Total $ 22,029 $ 21,991 $ 6,180 $ 23,400 $ 860 With no related allowance: Commercial and industrial $ 6,438 $ 6,441 $ — $ 6,744 $ 206 Agricultural and farmland 13,369 13,376 — 14,826 824 Commercial real estate - owner occupied 10,089 10,097 — 10,190 483 Commercial real estate - non-owner occupied 3,297 3,299 — 3,465 131 Multi-family 1,328 1,324 — 1,344 9 Construction and land development 104 103 — 107 4 One-to-four family residential 7,986 7,959 — 8,360 240 Municipal, consumer, and other 4,775 4,761 — 4,874 104 Total $ 47,386 $ 47,360 $ — $ 49,910 $ 2,001 Total: Commercial and industrial $ 10,730 $ 10,733 $ 2,170 $ 12,019 $ 358 Agricultural and farmland 13,959 13,966 105 15,290 836 Commercial real estate - owner occupied 10,919 10,927 270 11,064 526 Commercial real estate - non-owner occupied 3,396 3,398 70 3,566 138 Multi-family 1,328 1,324 — 1,344 9 Construction and land development 3,783 3,782 567 4,095 175 One-to-four family residential 11,387 11,349 822 11,774 319 Municipal, consumer, and other 13,913 13,872 2,176 14,158 500 Total $ 69,415 $ 69,351 $ 6,180 $ 73,310 $ 2,861 Unpaid Average Interest Principal Recorded Related Recorded Income December 31, 2018 Balance Investment Allowance Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,833 $ 2,833 $ 1,554 $ 4,274 $ 106 Agricultural and farmland 406 406 39 566 16 Commercial real estate - owner occupied 2,323 2,322 1,066 3,574 67 Commercial real estate - non-owner occupied 103 103 73 640 7 Multi-family 1,362 1,362 267 1,472 66 Construction and land development 3,136 3,135 1,714 2,593 161 One-to-four family residential 3,022 3,008 1,265 3,377 82 Municipal, consumer, and other 230 231 67 302 5 Total $ 13,415 $ 13,400 $ 6,045 $ 16,798 $ 510 With no related allowance: Commercial and industrial $ 4,651 $ 4,655 $ — $ 5,093 $ 59 Agricultural and farmland 10,888 10,889 — 8,815 526 Commercial real estate - owner occupied 16,891 16,880 — 12,217 384 Commercial real estate - non-owner occupied 7,715 7,717 — 7,110 147 Multi-family 316 316 — 355 17 Construction and land development 198 196 — 528 3 One-to-four family residential 9,874 9,829 — 10,706 168 Municipal, consumer, and other 184 185 — 297 5 Total $ 50,717 $ 50,667 $ — $ 45,121 $ 1,309 Total: Commercial and industrial $ 7,484 $ 7,488 $ 1,554 $ 9,367 $ 165 Agricultural and farmland 11,294 11,295 39 9,381 542 Commercial real estate - owner occupied 19,214 19,202 1,066 15,791 451 Commercial real estate - non-owner occupied 7,818 7,820 73 7,750 154 Multi-family 1,678 1,678 267 1,827 83 Construction and land development 3,334 3,331 1,714 3,121 164 One-to-four family residential 12,896 12,837 1,265 14,083 250 Municipal, consumer, and other 414 416 67 599 10 Total $ 64,132 $ 64,067 $ 6,045 $ 61,919 $ 1,819
Schedule of recorded investment on past due basis	Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2019 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 301,975 $ 558 $ — $ 4,642 $ 307,175 Agricultural and farmland 201,519 — — 6,257 207,776 Commercial real estate - owner occupied 228,218 941 — 2,003 231,162 Commercial real estate - non-owner occupied 579,626 131 — — 579,757 Multi-family 177,696 — — 1,377 179,073 Construction and land development 224,716 140 — 31 224,887 One-to-four family residential 307,712 1,329 75 4,464 313,580 Municipal, consumer, and other 119,898 247 26 245 120,416 Total $ 2,141,360 $ 3,346 $ 101 $ 19,019 $ 2,163,826 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2018 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 356,481 $ 122 $ 1,747 $ 2,151 $ 360,501 Agricultural and farmland 207,791 108 — 1,976 209,875 Commercial real estate - owner occupied 249,698 538 184 4,654 255,074 Commercial real estate - non-owner occupied 532,241 1,058 — 611 533,910 Multi-family 134,368 1,361 196 — 135,925 Construction and land development 236,798 82 — 395 237,275 One-to-four family residential 304,439 2,154 600 5,915 313,108 Municipal, consumer, and other 97,998 380 37 174 98,589 Total $ 2,119,814 $ 5,803 $ 2,764 $ 15,876 $ 2,144,257
Schedule of loans by category risk ratings	December 31, 2019 Pass Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 267,645 $ 27,114 $ 12,416 $ — $ 307,175 Agricultural and farmland 180,735 12,267 14,774 — 207,776 Commercial real estate - owner occupied 198,710 21,745 10,707 — 231,162 Commercial real estate - non-owner occupied 531,694 46,092 1,971 — 579,757 Multi-family 175,807 1,771 1,495 — 179,073 Construction and land development 217,120 3,582 4,185 — 224,887 One-to-four family residential 287,036 13,546 12,998 — 313,580 Municipal, consumer, and other 106,063 479 13,874 — 120,416 Total $ 1,964,810 $ 126,596 $ 72,420 $ — $ 2,163,826 December 31, 2018 Pass Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 315,815 $ 35,176 $ 9,510 $ — $ 360,501 Agricultural and farmland 185,598 12,116 12,161 — 209,875 Commercial real estate - owner occupied 217,017 17,845 20,212 — 255,074 Commercial real estate - non-owner occupied 486,859 39,231 7,820 — 533,910 Multi-family 131,583 2,468 1,874 — 135,925 Construction and land development 227,775 5,663 3,837 — 237,275 One-to-four family residential 282,704 14,599 15,805 — 313,108 Municipal, consumer, and other 97,668 497 424 — 98,589 Total $ 1,945,019 $ 127,595 $ 71,643 $ — $ 2,144,257
Schedule of financial effect of troubled debt restructurings	The following tables present the financial effect of troubled debt restructurings for the years ended December 31: Charge-offs Recorded Investment and Specific Year Ended December 31, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 2 392 392 — Commercial real estate - owner occupied 1 170 170 — One-to-four family residential 1 21 21 — Total 7 $ 1,099 $ 1,099 $ — Charge-offs Recorded Investment and Specific Year Ended December 31, 2018 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 2 $ 296 $ 296 $ 157 Agricultural and farmland 1 171 171 — Commercial real estate - owner occupied 2 5,173 5,189 47 One-to-four family residential 4 1,230 1,255 480 Total 9 $ 6,870 $ 6,911 $ 684 Charge-offs Recorded Investment and Specific Year Ended December 31, 2017 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 4 $ 659 $ 659 $ 165 Commercial real estate - owner occupied 4 613 613 — Commercial real estate - non-owner occupied 4 2,954 2,281 674 One-to-four family residential 4 350 350 52 Total 16 $ 4,576 $ 3,903 $ 891 December 31, December 31, December 31, 2019 2018 2017 (dollars in thousands) Commercial and industrial $ — $ 47 $ — Agricultural and farmland 98 166 — Commercial real estate - owner occupied — 172 — One-to-four family residential — 542 — Total $ 98 $ 927 $ —
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 2,101 $ 2,723 $ 3,647 Reclassification from non-accretable difference 822 2,092 4,061 Accretion income (1,261) (2,714) (4,985) Ending balance $ 1,662 $ 2,101 $ 2,723

LOAN SERVICING (Tables)

LOAN SERVICING (Tables)	12 Months Ended
	Dec. 31, 2019
LOAN SERVICING
Schedule of activity in mortgage servicing rights	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 10,918 $ 10,289 $ 10,604 Capitalized servicing rights 1,018 885 1,049 Fair value adjustment (3,418) (256) (1,364) Ending balance $ 8,518 $ 10,918 $ 10,289

BANK PREMISES AND EQUIPMENT (Ta

BANK PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
BANK PREMISES AND EQUIPMENT
Summary of bank premises and depreciation expense	2019 2018 (dollars in thousands) Land, buildings, and improvements $ 75,878 $ 75,168 Furniture, fixtures, and equipment 21,200 20,265 97,078 95,433 Less accumulated depreciation 43,091 40,697 Total bank premises and equipment, net $ 53,987 $ 54,736 Year Ended December 31, 2019 2018 2017 (dollars in thousands) Buildings and improvements $ 1,813 $ 2,107 $ 1,908 Furniture, fixtures, and equipment 896 1,112 1,384 Total depreciation expense $ 2,709 $ 3,219 $ 3,292

FORECLOSED ASSETS (Tables)

FORECLOSED ASSETS (Tables)	12 Months Ended
	Dec. 31, 2019
FORECLOSED ASSETS
Schedule of foreclosed assets activity	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Beginning balance $ 9,559 $ 16,545 $ 16,224 Transfers from loans 2,520 2,518 10,212 Capitalized improvements 41 — — Proceeds from sales (5,460) (6,851) (9,049) Sales through loan origination (2,046) (1,220) (150) Net gain (loss) on sales 1,048 (268) 1,727 Direct write-downs (563) (1,165) (2,419) Ending balance $ 5,099 $ 9,559 $ 16,545
Schedule of gains (losses) on foreclosed assets	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Direct write-downs $ (563) $ (1,165) $ (2,419) Net gain (loss) on sales 1,048 (268) 1,727 Guarantee reimbursements 80 — — Gain on settlement 375 — — Gain on foreclosure — 96 974 Gains (losses) on foreclosed assets $ 940 $ (1,337) $ 282

CORE DEPOSIT INTANGIBLE ASSETS

CORE DEPOSIT INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2019
CORE DEPOSIT INTANGIBLE ASSETS
Schedule of Core deposit intangible assets	2019 2018 (dollars in thousands) Gross carrying amount $ 21,718 $ 21,718 Accumulated amortization (17,688) (16,265) Core deposit intangible assets, net $ 4,030 $ 5,453
Schedule of future amortization of core deposit intangible assets	Year ended December 31, 2020 $ 1,232 2021 1,047 2022 852 2023 330 2024 316 Thereafter 253 Total $ 4,030

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2019
DEPOSITS
Schedule of Company’s interest-bearing deposits	December 31, 2019 December 31, 2018 (dollars in thousands) Interest-bearing demand $ 814,639 $ 856,919 Money market 477,765 427,730 Savings 438,927 421,698 Time 356,408 424,747 Total interest-bearing deposits $ 2,087,739 $ 2,131,094
Scheduled maturities of time deposits	Year ended December 31, 2020 $ 257,937 2021 58,929 2022 23,423 2023 8,926 2024 7,023 Thereafter 170 Total $ 356,408
Schedule of interest expense on deposits	Year Ended December 31, 2019 2018 2017 (dollars in thousands) Interest-bearing demand $ 1,474 $ 1,378 $ 908 Money market 1,837 685 704 Savings 278 283 293 Time 4,343 3,541 3,054 Total interest expense on deposits $ 7,932 $ 5,887 $ 4,959

SECURITIES SOLD UNDER AGREEME_2

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)	12 Months Ended
	Dec. 31, 2019
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
Schedule of Information pertaining to securities sold under agreements to repurchase	2019 2018 (dollars in thousands) Balance at end of year $ 44,433 $ 46,195 Weighted average rate as of end of year 0.20 % 0.12 % Fair value of securities underlying the agreements $ 57,760 $ 61,092 Carrying value of securities underlying the agreements $ 57,760 $ 61,092

SUBORDINATED DEBENTURES (Tables

SUBORDINATED DEBENTURES (Tables)	12 Months Ended
	Dec. 31, 2019
SUBORDINATED DEBENTURES
Schedule of carrying value of subordinated debentures	December 31, 2019 December 31, 2018 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 4,591 4,525 Total $ 37,583 $ 37,517
Schedule of interest rates and maturities of the subordinated debentures	Interest Rate at Variable December 31, December 31, Maturity Interest Rate 2019 2018 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 4.74 % 5.19 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 3.42 4.32 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 3.24 4.14 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 4.79 5.24 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 4.79 5.69 December 31, 2037

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Summary of fair values of Company’s derivative instrument assets and liabilities related to interest rate swap contracts	December 31, 2019 December 31, 2018 Designated as cash flow hedges: (dollars in thousands) Fair value recorded in other assets $ — $ 151 Fair value recorded in other liabilities (676) — Total $ (676) $ 151 Not designated as hedging instruments: Fair value recorded in other assets $ 8,642 $ 3,074 Fair value recorded in other liabilities (8,642) (3,074) Total $ — $ —
Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income	Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Year Ended December 31, 2019 2018 2017 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ 116 $ 175 $ 275 Subordinated debentures interest expense (29) — (108) Total $ 87 $ 175 $ 167
Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income	Year Ended December 31, 2019 2018 2017 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 13,537 $ 1,758 $ 1,468 Gross losses (13,500) (1,758) (1,468) Net gains (losses) $ 37 $ — $ —

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME
Schedule of the activity and accumulated balances for components of other comprehensive income (loss)	Unrealized Gains (Losses) on Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Balance, December 31, 2016 $ (511) $ 897 $ 603 $ 989 Other comprehensive income (loss) before reclassifications (2,052) — (27) (2,079) Reclassifications 1,275 (393) (167) 715 Other comprehensive income (loss) (777) (393) (194) (1,364) Balance, December 31, 2017 (1,288) 504 409 (375) Adoption of ASU 2016-01 (122) — — (122) Other comprehensive income (loss) before reclassifications (5,692) — (83) (5,775) Reclassifications 2,541 (382) (175) 1,984 Other comprehensive loss (3,151) (382) (258) (3,791) Balance, December 31, 2018 (4,561) 122 151 (4,288) Other comprehensive income (loss) before reclassifications 12,458 — (698) 11,760 Reclassifications — (264) (87) (351) Other comprehensive income (loss), before tax 12,458 (264) (785) 11,409 Income tax expense (benefit) (762) (11) 62 (711) Other comprehensive income (loss), after tax 13,220 (253) (847) 12,120 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
Schedule of allocation of federal and state income taxes between current and deferred portions	2019 2018 2017 (dollars in thousands) Current Federal $ 4,849 $ — $ — State 3,102 869 870 Total current 7,951 869 870 Deferred Federal (1,437) — — State (724) — — Change in tax status (534) — — Total deferred (2,695) — — Income tax expense $ 5,256 $ 869 $ 870
Schedule of effective income tax rate reconciliation	2019 2018 2017 Amount Percentage Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 3,933 5.5 % $ — — % $ — — % Increase (decrease) resulting from: State taxes, net of federal benefit 2,212 3.1 869 1.3 870 1.5 Change in tax status (534) (0.8) — — — — Other (355) (0.5) — — — — Income tax expense $ 5,256 7.3 % $ 869 1.3 % $ 870 1.5 %
Schedule of components of the net deferred tax asset	The components of the net deferred tax asset as of December 31, 2019 are as follows (dollars in thousands): Deferred tax assets Allowance for loan losses $ 6,309 Compensation related 5,859 Nonaccrual interest 858 Foreclosed assets 574 Goodwill 531 Other 1,282 Total deferred tax assets 15,413 Deferred tax liabilities Fixed asset depreciation 4,201 Mortgage servicing rights 2,428 Other purchase accounting adjustments 1,356 Intangible assets 841 Prepaid assets 504 Net unrealized gain on securities available-for-sale 2,251 Other 426 Total deferred tax liabilities 12,007 Net deferred tax asset $ 3,406

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2019
STOCK-BASED COMPENSATION PLANS
Schedule of the status of stock appreciation rights and changes	Stock Appreciation Rights Weighted Average Outstanding, December 31, 2016 116,280 $ 5.66 Granted — — Exercised — — Forfeited — — Outstanding, December 31, 2017 116,280 $ 5.66 Granted — — Exercised (24,480) 5.43 Forfeited — — Outstanding, December 31, 2018 91,800 $ 5.73 Granted 110,160 16.32 Exercised (91,800) 5.73 Forfeited — — Outstanding, December 31, 2019 110,160 $ 16.32 Exercisable, December 31, 2019 79,560 $ 16.32 Exercisable, December 31, 2018 91,800 $ 5.73 A further summary of outstanding stock appreciation rights as of December 31, 2019, is as follows: Weighted Average Remaining Range of Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 110,160 79,560 9.7 years

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2019
REGULATORY MATTERS
Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios	Actual For Capital To Be Well December 31, 2019 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,994 % $ 196,358 8.00 % N/A N/A Heartland Bank 315,516 180,071 8.00 $ 225,088 10.00 % State Bank of Lincoln 35,390 16,104 8.00 20,130 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 147,268 6.00 % N/A N/A Heartland Bank 295,385 135,053 6.00 $ 180,071 8.00 % State Bank of Lincoln 33,222 12,078 6.00 16,104 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 298,277 % $ 110,451 4.50 % N/A N/A Heartland Bank 295,385 101,290 4.50 $ 146,307 6.50 % State Bank of Lincoln 33,222 9,058 4.50 13,084 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 129,027 4.00 % N/A N/A Heartland Bank 295,385 115,281 4.00 $ 144,102 5.00 % State Bank of Lincoln 33,222 13,531 4.00 16,914 5.00 Actual For Capital To Be Well December 31, 2018 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 372,472 % $ 198,730 8.00 % N/A N/A Heartland Bank 332,391 184,127 8.00 $ 230,159 10.00 % State Bank of Lincoln 38,059 14,488 8.00 18,110 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 351,963 % $ 149,047 6.00 % N/A N/A Heartland Bank 313,406 138,095 6.00 $ 184,127 8.00 % State Bank of Lincoln 36,535 10,866 6.00 14,488 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 315,611 % $ 111,785 4.50 % N/A N/A Heartland Bank 313,406 103,572 4.50 $ 149,603 6.50 % State Bank of Lincoln 36,535 8,150 4.50 11,772 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 351,963 % $ 130,393 4.00 % N/A N/A Heartland Bank 313,406 113,668 4.00 $ 142,085 5.00 % State Bank of Lincoln 36,535 14,319 4.00 17,899 5.00

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Summary of assets measured at fair value on a recurring basis	December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities available-for-sale: U.S. government agency $ — $ 49,615 $ — $ 49,615 Municipal — 133,738 — 133,738 Mortgage-backed: Agency residential — 200,678 — 200,678 Agency commercial — 134,954 — 134,954 Corporate — 73,419 — 73,419 Equity securities with readily determinable fair values 3,241 — — 3,241 Mortgage servicing rights — — 8,518 8,518 Derivative financial assets — 8,642 — 8,642 Derivative financial liabilities — 9,318 — 9,318 December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities available-for-sale: U.S. government agency $ — $ 46,866 $ — $ 46,866 Municipal — 161,450 — 161,450 Mortgage-backed: Agency residential — 234,303 — 234,303 Agency commercial — 150,081 — 150,081 Private-label — 256 — 256 Corporate — 86,570 — 86,570 Equity securities with readily determinable fair values 3,081 — — 3,081 Mortgage servicing rights — — 10,918 10,918 Derivative financial assets — 3,225 — 3,225 Derivative financial liabilities — 3,074 — 3,074
Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements	The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 8,518 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 68.5% (12.3%) Discount rate 9.0% to 11.0% (9.0%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 10,918 Discounted cash flows Constant pre-payment rates (CPR) 7.5% to 87.6% (8.9%) Discount rate 9.0% to 11.0% (9.0%)
Summary of assets measured at fair value on a nonrecurring basis	December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 4,531 $ — $ 4,531 Collateral-dependent impaired loans — — 15,811 15,811 Bank premises held for sale — — 121 121 Foreclosed assets — — 5,099 5,099 December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 2,800 $ — $ 2,800 Collateral-dependent impaired loans — — 7,355 7,355 Bank premises held for sale — — 749 749 Foreclosed assets — — 9,559 9,559
Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements	The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands). December 31, 2019 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 15,811 Appraisal of collateral Appraisal adjustments 20% to 40% (25%) Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 5,099 Appraisal Appraisal adjustments 7% (7%) December 31, 2018 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 7,355 Appraisal of collateral Appraisal adjustments 20% to 40% (25%) Bank premises held for sale 749 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 9,559 Appraisal Appraisal adjustments 7% (7%)
Summary information on the carrying amounts and estimated fair values of the Company’s financial instruments	Fair Value December 31, 2019 December 31, 2018 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 283,971 $ 283,971 $ 186,879 $ 186,879 Interest-bearing time deposits with banks Level 1 248 248 248 248 Securities held-to-maturity Level 2 88,477 90,529 121,715 121,506 Restricted stock Level 3 2,425 2,425 2,719 2,719 Loans, net Level 3 2,141,527 2,181,103 2,123,748 2,125,698 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 13,951 13,951 15,300 15,300 Financial liabilities: Time deposits Level 3 356,408 355,340 424,747 419,333 Securities sold under agreements to repurchase Level 2 44,433 44,433 46,195 46,195 Subordinated debentures Level 3 37,583 31,959 37,517 32,149 Accrued interest payable Level 2 1,132 1,132 1,207 1,207

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Schedule of commitments and conditional obligations	Contractual Amount December 31, December 31, 2019 2018 (dollars in thousands) Commitments to extend credit $ 542,705 $ 524,112 Standby letters of credit 8,991 10,358
Schedule of future minimum lease payments	Future minimum lease payments under these leases are as follows (dollars in thousands): Year ended December 31, 2020 $ 93 2021 86 2022 51 2023 21 2024 21 Thereafter 3 Total $ 275

CONDENSED PARENT COMPANY ONLY_2

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS
Schedule of condensed parent company only balance sheets	December 31 2019 2018 ASSETS (dollars in thousands) Cash and cash equivalents $ 4,978 $ 2,169 Investment in subsidiaries: Bank 363,860 375,194 Non-bank 1,201 1,251 Other assets 1,081 422 Total assets $ 371,120 $ 379,036 LIABILITIES Subordinated debentures $ 37,583 $ 37,517 Other liabilities 619 1,123 Total liabilities 38,202 38,640 STOCKHOLDERS' EQUITY 332,918 340,396 Total liabilities and stockholders' equity $ 371,120 $ 379,036
Schedule of condensed parent company only statements of income	Years ended December 31 2019 2018 2017 INCOME (dollars in thousands) Dividends received from subsidiaries: Bank $ 109,969 $ 44,446 $ 57,327 Non-bank 385 941 1,900 Undistributed earnings from subsidiaries: Bank (41,202) 23,239 (115) Non-bank (151) (1,984) (404) Other income 52 1 35 Total income 69,053 66,643 58,743 EXPENSES Interest expense 1,922 1,795 1,525 Other expense 1,025 1,085 1,134 Total expenses 2,947 2,880 2,659 INCOME BEFORE INCOME TAX BENEFIT 66,106 63,763 56,084 INCOME TAX BENEFIT (759) (36) (19) NET INCOME $ 66,865 $ 63,799 $ 56,103
Schedule of condensed parent company only statements of cash flows	Year ended December 31 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES (dollars in thousands) Net income $ 66,865 $ 63,799 $ 56,103 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of consolidated subsidiaries 41,353 (21,255) 519 Amortization of subordinated debenture purchase accounting adjustment 66 66 65 Changes in other assets and liabilities, net (1,912) 700 306 Net cash provided by operating activities 106,372 43,310 56,993 CASH FLOWS FROM INVESTING ACTIVITIES Capital contribution to bank subsidiary (17,000) — — Capital contribution to non-bank subsidiary (100) — — Net cash used in investing activities (17,100) — — CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock 138,493 — — Repurchase of common stock — (907) — Cash dividends (224,956) (42,621) (57,069) Net cash used in financing activities (86,463) (43,528) (57,069) NET CHANGE IN CASH AND EQUIVALENTS 2,809 (218) (76) CASH AND CASH EQUIVALENTS Beginning of year 2,169 2,387 2,463 End of year $ 4,978 $ 2,169 $ 2,387

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Oct. 11, 2019USD ($)	Oct. 11, 2019USD ($)	Oct. 10, 2019USD ($)$ / sharesshares	Sep. 13, 2019	Oct. 27, 2017USD ($)	Dec. 31, 2019USD ($)segmentsubsidiaryitem$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)shares	Feb. 15, 2019USD ($)
ACCOUNTING POLICIES
Number of subsidiary | subsidiary						5
Issuance of common stock (in shares) | shares			9,429,794
Share price | $ / shares			$ 16
Proceeds from initial public offering			$ 138,493,000
Special dividend fund			$ 170,000,000
Special dividend per share | $ / shares			$ 9.43
Pro forma dilutive instruments | shares						0	0	0
Transfer amount						$ 0	$ 0	$ 0
Restricted Investments						$ 2,425,000	2,719,000
Number of primary components of allowance for loan losses | item						2
Actual loss history period						4 years
Total loan exposure subject to credit risk						$ 500,000
Definite useful lives of other identifiable intangible assets						10 years
Branch buildings classified as held for sale						$ 121,000	749,000
Impairment loss						$ 37,000	52,000	1,936,000
Contractual interest rates of FDIC indemnification asset						0.00%
Cash payments to FDIC pursuant to termination of agreement					$ 4,929,000
Write-down of FDIC indemnification asset					$ 459,000
Percentage matching the compensation contributed by employees						5.00%
Provision for prepaid dividend						$ 0
Deferred tax asset	$ 534,000	$ 534,000				3,406,000
Income tax benefit	$ 500,000	$ 534,000				(5,256,000)	(869,000)	$ (870,000)
Uncertain tax positions						$ 0	$ 0
Dilutive instruments outstanding | shares						0	0	0
Number of segments | segment						1
Common stock and preferred stock, shares authorized | shares			150,000,000
Common stock, shares converted | shares			1
Common stock, shares authorized | shares			125,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.01
Preferred stock, shares authorized | shares			25,000,000			25,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.01			$ 0.01
Common Stock
ACCOUNTING POLICIES
Stock split ratio				20
Series A Nonvoting
ACCOUNTING POLICIES
Stock split ratio				20
Common stock, shares authorized | shares							24,000,000
Common stock, par value (in dollars per share) | $ / shares							$ 0.01
Single-family loss-share agreement
ACCOUNTING POLICIES
Original term						10 years
Non-single family residential loss-share agreement
ACCOUNTING POLICIES
Original term						8 years
Related parties
ACCOUNTING POLICIES
Loans						$ 4,162,000	$ 830,000
Financial asset acquired with credit deterioration | Loans
ACCOUNTING POLICIES
Allowance for credit loss						$ 0
First Community Title Services, Inc.
ACCOUNTING POLICIES
Consideration received									$ 498,000

RESTRICTED CASH AND DUE FROM _2

RESTRICTED CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
RESTRICTED CASH AND DUE FROM BANKS
Required reserve funds in cash or on deposit with the Federal Reserve Bank	$ 23,100	$ 22,037

SECURITIES - Narrative (Details

SECURITIES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SECURITIES
Adjustment to carrying value of equity securities with no readily determinable fair value	$ 165
Carrying value of securities pledged to secure public and trust deposits	$ 284,895	$ 291,404
Illinois
SECURITIES
Percentage of obligations of local municipalities	51.00%
Percentage of general obligations in local municipalities	88.00%

SECURITIES - Carrying balances

SECURITIES - Carrying balances of securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
SECURITIES
Securities available-for-sale, at fair value	$ 592,404	$ 679,526
Securities held-to-maturity	88,477	121,715
Equity securities: Readily determinable fair value	3,241	3,081
Equity securities: No readily determinable fair value	1,148	180
Total securities	$ 685,270	$ 804,502

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale
Amortized Cost	$ 584,507	$ 684,087
Gross Unrealized Gains	8,508	2,293
Gross Unrealized Losses	(611)	(6,854)
Fair Value	592,404	679,526
Held-to-maturity
Amortized Cost	88,477	121,715
Gross Unrealized Gains	2,276	1,326
Gross Unrealized Losses	(224)	(1,535)
Fair Value	90,529	121,506
U.S. government agency
Available-for-sale
Amortized Cost	49,113	46,977
Gross Unrealized Gains	529	250
Gross Unrealized Losses	(27)	(361)
Fair Value	49,615	46,866
Municipal securities
Available-for-sale
Amortized Cost	131,241	161,957
Gross Unrealized Gains	2,503	761
Gross Unrealized Losses	(6)	(1,268)
Fair Value	133,738	161,450
Held-to-maturity
Amortized Cost	45,239	73,176
Gross Unrealized Gains	1,340	1,149
Gross Unrealized Losses		(42)
Fair Value	46,579	74,283
Mortgage-backed: Agency residential
Available-for-sale
Amortized Cost	198,184	235,903
Gross Unrealized Gains	2,780	788
Gross Unrealized Losses	(286)	(2,388)
Fair Value	200,678	234,303
Held-to-maturity
Amortized Cost	19,072	23,192
Gross Unrealized Gains	161
Gross Unrealized Losses	(170)	(998)
Fair Value	19,063	22,194
Mortgage-backed: Agency commercial
Available-for-sale
Amortized Cost	133,730	151,878
Gross Unrealized Gains	1,516	285
Gross Unrealized Losses	(292)	(2,082)
Fair Value	134,954	150,081
Held-to-maturity
Amortized Cost	24,166	25,347
Gross Unrealized Gains	775	177
Gross Unrealized Losses	(54)	(495)
Fair Value	24,887	25,029
Mortgage-backed: Private-label
Available-for-sale
Amortized Cost		254
Gross Unrealized Gains		2
Fair Value		256
Corporate
Available-for-sale
Amortized Cost	72,239	87,118
Gross Unrealized Gains	1,180	207
Gross Unrealized Losses		(755)
Fair Value	$ 73,419	$ 86,570

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Amortized Cost	$ 584,507	$ 684,087
Fair Value
Fair Value	592,404	679,526
Amortized Cost
Securities held-to-maturity	88,477	121,715
Fair Value
Fair Value	90,529	121,506
Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	198,184	235,903
Fair Value
Fair Value	200,678	234,303
Amortized Cost
Securities held-to-maturity	19,072	23,192
Fair Value
Fair Value	19,063	22,194
Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	133,730	151,878
Fair Value
Fair Value	134,954	150,081
Amortized Cost
Securities held-to-maturity	24,166	25,347
Fair Value
Fair Value	24,887	25,029
Mortgage-backed: Private-label
Amortized Cost
Amortized Cost		254
Fair Value
Fair Value		$ 256
Available-for-sale
Amortized Cost
Due in 1 year or less	49,357
Due after 1 year through 5 years	115,487
Due after 5 years through 10 years	81,515
Due after 10 years	6,234
Amortized Cost	584,507
Fair Value
Due in 1 year or less	49,527
Due after 1 year through 5 years	117,484
Due after 5 years through 10 years	83,392
Due after 10 years	6,369
Fair Value	592,404
Available-for-sale | Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	198,184
Fair Value
Fair Value	200,678
Available-for-sale | Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	133,730
Fair Value
Fair Value	134,954
Held-to-maturity
Amortized Cost
Due in 1 year or less	752
Due after 1 year through 5 years	31,309
Due after 5 years through 10 years	11,504
Due after 10 years	1,674
Securities held-to-maturity	88,477
Fair Value
Due in 1 year or less	758
Due after 1 year through 5 years	32,238
Due after 5 years through 10 years	11,799
Due after 10 years	1,784
Fair Value	90,529
Held-to-maturity | Mortgage-backed: Agency residential
Amortized Cost
Securities held-to-maturity	19,072
Fair Value
Fair Value	19,063
Held-to-maturity | Mortgage-backed: Agency commercial
Amortized Cost
Securities held-to-maturity	24,166
Fair Value
Fair Value	$ 24,887

SECURITIES - Sale and Gain (los

SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales of securities available-for-sale
Proceeds from sales		$ 104,303	$ 51,500
Gross realized gains		281
Gross realized losses		(2,822)	(1,275)
Gains (losses) on securities
Net realized losses on sales		(2,541)	(1,275)
Net unrealized gains (losses) on equities:
Readily determinable fair value	$ 160	(122)
No readily determinable fair value	(165)
Gains (losses) on securities	$ (5)	$ (2,663)	$ (1,275)

SECURITIES - Investments in a C

SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (240)	$ (1,356)
12 Months or More	(371)	(5,498)
Total Unrealized Loss of Available-for-sale securities	(611)	(6,854)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(77)	(158)
12 Months or More	(147)	(1,377)
Total Unrealized Loss of Held-to-maturity securities	(224)	(1,535)
Available-for-sale: Fair Value
Less than 12 Months	65,378	147,173
12 Months or More	44,998	288,560
Total Fair Value Available-for-sale securities	110,376	435,733
Held-to-maturity: Fair value
Less than 12 Months	9,532	17,122
12 Months or More	9,601	29,833
Total Fair Value Held-to-maturity securities	$ 19,133	46,955
Number of securities in an unrealized loss position for a period of twelve months or more | item	59
Number of securities in an unrealized loss position for a period of less than twelve months | item	35
U.S. government agency
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (26)	(302)
12 Months or More	(1)	(59)
Total Unrealized Loss of Available-for-sale securities	(27)	(361)
Available-for-sale: Fair Value
Less than 12 Months	18,865	19,079
12 Months or More	1,998	7,938
Total Fair Value Available-for-sale securities	20,863	27,017
Municipal securities
Available-for-sale: Unrealized Loss
Less than 12 Months	(6)	(230)
12 Months or More		(1,038)
Total Unrealized Loss of Available-for-sale securities	(6)	(1,268)
Held-to-maturity: Unrealized Loss
Less than 12 Months		(32)
12 Months or More		(10)
Total Unrealized Loss of Held-to-maturity securities		(42)
Available-for-sale: Fair Value
Less than 12 Months	894	31,034
12 Months or More		59,702
Total Fair Value Available-for-sale securities	894	90,736
Held-to-maturity: Fair value
Less than 12 Months		4,166
12 Months or More		1,856
Total Fair Value Held-to-maturity securities		6,022
Mortgage-backed: Agency residential
Available-for-sale: Unrealized Loss
Less than 12 Months	(108)	(299)
12 Months or More	(178)	(2,089)
Total Unrealized Loss of Available-for-sale securities	(286)	(2,388)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(30)	(59)
12 Months or More	(140)	(939)
Total Unrealized Loss of Held-to-maturity securities	(170)	(998)
Available-for-sale: Fair Value
Less than 12 Months	25,563	40,864
12 Months or More	27,296	99,967
Total Fair Value Available-for-sale securities	52,859	140,831
Held-to-maturity: Fair value
Less than 12 Months	2,516	4,046
12 Months or More	9,002	17,564
Total Fair Value Held-to-maturity securities	11,518	21,610
Mortgage-backed: Agency commercial
Available-for-sale: Unrealized Loss
Less than 12 Months	(100)	(262)
12 Months or More	(192)	(1,820)
Total Unrealized Loss of Available-for-sale securities	(292)	(2,082)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(47)	(67)
12 Months or More	(7)	(428)
Total Unrealized Loss of Held-to-maturity securities	(54)	(495)
Available-for-sale: Fair Value
Less than 12 Months	20,056	35,462
12 Months or More	15,704	81,899
Total Fair Value Available-for-sale securities	35,760	117,361
Held-to-maturity: Fair value
Less than 12 Months	7,016	8,910
12 Months or More	599	10,413
Total Fair Value Held-to-maturity securities	$ 7,615	19,323
Corporate
Available-for-sale: Unrealized Loss
Less than 12 Months		(263)
12 Months or More		(492)
Total Unrealized Loss of Available-for-sale securities		(755)
Available-for-sale: Fair Value
Less than 12 Months		20,734
12 Months or More		39,054
Total Fair Value Available-for-sale securities		$ 59,788

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	$ 2,163,826	$ 2,144,257
Allowance for loan losses	(22,299)	(20,509)	$ (19,765)	$ (19,708)
Loans, net of allowance for loan losses	2,141,527	2,123,748
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	307,175	360,501
Allowance for loan losses	(4,441)	(3,748)	(5,411)	(4,870)
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	207,776	209,875
Allowance for loan losses	(2,766)	(2,650)	(2,385)	(3,455)
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	231,162	255,074
Allowance for loan losses	(1,779)	(2,506)	(1,510)	(1,622)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	579,757	533,910
Allowance for loan losses	(3,663)	(2,644)	(2,476)	(2,701)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	179,073	135,925
Allowance for loan losses	(1,024)	(912)	(997)	(1,282)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	224,887	237,275
Allowance for loan losses	(2,977)	(4,176)	(2,981)	(1,983)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	313,580	313,108
Allowance for loan losses	(2,540)	(2,782)	(2,723)	(2,720)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	120,416	98,589
Allowance for loan losses	$ (3,109)	$ (1,091)	$ (1,282)	$ (1,075)

LOANS AND THE ALLOWANCE FOR L_4

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	$ 20,509	$ 19,765	$ 19,708
Provision for loan losses	3,404	5,697	3,139
Charge-offs	(3,273)	(6,485)	(5,016)
Recoveries	1,659	1,532	1,934
Allowance for loan losses at end of period	22,299	20,509	19,765
Commercial and industrial
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	3,748	5,411	4,870
Provision for loan losses	1,139	(532)	2,133
Charge-offs	(886)	(1,446)	(1,780)
Recoveries	440	315	188
Allowance for loan losses at end of period	4,441	3,748	5,411
Agricultural and farmland
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,650	2,385	3,455
Provision for loan losses	146	265	(1,067)
Charge-offs	(30)		(3)
Allowance for loan losses at end of period	2,766	2,650	2,385
Commercial real estate - owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,506	1,510	1,622
Provision for loan losses	(376)	3,294	(118)
Charge-offs	(407)	(2,352)	(32)
Recoveries	56	54	38
Allowance for loan losses at end of period	1,779	2,506	1,510
Commercial real estate - non-owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,644	2,476	2,701
Provision for loan losses	1,110	264	(243)
Charge-offs	(111)	(237)	(940)
Recoveries	20	141	958
Allowance for loan losses at end of period	3,663	2,644	2,476
Multi-family
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	912	997	1,282
Provision for loan losses	153	109	(132)
Charge-offs	(41)	(194)	(153)
Allowance for loan losses at end of period	1,024	912	997
Construction and land development
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,176	2,981	1,983
Provision for loan losses	(1,640)	993	1,474
Charge-offs	(9)	(58)	(503)
Recoveries	450	260	27
Allowance for loan losses at end of period	2,977	4,176	2,981
One-to-four family residential
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,782	2,723	2,720
Provision for loan losses	513	984	376
Charge-offs	(1,105)	(1,415)	(787)
Recoveries	350	490	414
Allowance for loan losses at end of period	2,540	2,782	2,723
Municipal, consumer, and other
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	1,091	1,282	1,075
Provision for loan losses	2,359	320	716
Charge-offs	(684)	(783)	(818)
Recoveries	343	272	309
Allowance for loan losses at end of period	$ 3,109	$ 1,091	$ 1,282

LOANS AND THE ALLOWANCE FOR L_5

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	$ 2,051,802	$ 2,025,522
Individually evaluated for impairment, Loans	69,351	64,067
Total	2,163,826	2,144,257
Collectively evaluated for impairment, Allowance for loan losses	15,496	13,940
Individually evaluated for impairment, Allowance for loan losses	6,180	6,045
Total investments in loans	22,299	20,509	$ 19,765	$ 19,708
Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	42,673	54,668
Individually evaluated for impairment, Allowance for loan losses	623	524
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	294,006	350,435
Individually evaluated for impairment, Loans	10,733	7,488
Total	307,175	360,501
Collectively evaluated for impairment, Allowance for loan losses	1,926	2,188
Individually evaluated for impairment, Allowance for loan losses	2,170	1,554
Total investments in loans	4,441	3,748	5,411	4,870
Commercial and industrial | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	2,436	2,578
Individually evaluated for impairment, Allowance for loan losses	345	6
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	192,722	197,414
Individually evaluated for impairment, Loans	13,966	11,295
Total	207,776	209,875
Collectively evaluated for impairment, Allowance for loan losses	2,576	2,611
Individually evaluated for impairment, Allowance for loan losses	105	39
Total investments in loans	2,766	2,650	2,385	3,455
Agricultural and farmland | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,088	1,166
Individually evaluated for impairment, Allowance for loan losses	85
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	211,744	226,068
Individually evaluated for impairment, Loans	10,927	19,202
Total	231,162	255,074
Collectively evaluated for impairment, Allowance for loan losses	1,486	1,423
Individually evaluated for impairment, Allowance for loan losses	270	1,066
Total investments in loans	1,779	2,506	1,510	1,622
Commercial real estate - owner occupied | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	8,491	9,804
Individually evaluated for impairment, Allowance for loan losses	23	17
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	561,277	504,368
Individually evaluated for impairment, Loans	3,398	7,820
Total	579,757	533,910
Collectively evaluated for impairment, Allowance for loan losses	3,591	2,566
Individually evaluated for impairment, Allowance for loan losses	70	73
Total investments in loans	3,663	2,644	2,476	2,701
Commercial real estate - non-owner occupied | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	15,082	21,722
Individually evaluated for impairment, Allowance for loan losses	2	5
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	176,273	132,379
Individually evaluated for impairment, Loans	1,324	1,678
Total	179,073	135,925
Collectively evaluated for impairment, Allowance for loan losses	1,019	640
Individually evaluated for impairment, Allowance for loan losses		267
Total investments in loans	1,024	912	997	1,282
Multi-family | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,476	1,868
Individually evaluated for impairment, Allowance for loan losses	5	5
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	217,708	229,626
Individually evaluated for impairment, Loans	3,782	3,331
Total	224,887	237,275
Collectively evaluated for impairment, Allowance for loan losses	2,283	2,024
Individually evaluated for impairment, Allowance for loan losses	567	1,714
Total investments in loans	2,977	4,176	2,981	1,983
Construction and land development | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	3,397	4,318
Individually evaluated for impairment, Allowance for loan losses	127	438
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	291,624	287,173
Individually evaluated for impairment, Loans	11,349	12,837
Total	313,580	313,108
Collectively evaluated for impairment, Allowance for loan losses	1,684	1,464
Individually evaluated for impairment, Allowance for loan losses	822	1,265
Total investments in loans	2,540	2,782	2,723	2,720
One-to-four family residential | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	10,607	13,098
Individually evaluated for impairment, Allowance for loan losses	34	53
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	106,448	98,059
Individually evaluated for impairment, Loans	13,872	416
Total	120,416	98,589
Collectively evaluated for impairment, Allowance for loan losses	931	1,024
Individually evaluated for impairment, Allowance for loan losses	2,176	67
Total investments in loans	3,109	1,091	$ 1,282	$ 1,075
Municipal, consumer, and other | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	96	$ 114
Individually evaluated for impairment, Allowance for loan losses	$ 2

LOANS AND THE ALLOWANCE FOR L_6

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Individually evaluated for impairment by category of loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Unpaid Principal Balance
With an allowance recorded	$ 22,029	$ 13,415
With no related allowance	47,386	50,717
Total	69,415	64,132
Recorded Investment
With an allowance recorded	21,991	13,400
With no related allowance	47,360	50,667
Total	69,351	64,067
Related Allowance	6,180	6,045
Average Recorded Investment
With an allowance recorded	23,400	16,798
With no related allowance	49,910	45,121
Total	73,310	61,919
Interest Income Recognized
With an allowance recorded	860	510
With no related allowance	2,001	1,309
Total	2,861	1,819
Commercial and industrial
Unpaid Principal Balance
With an allowance recorded	4,292	2,833
With no related allowance	6,438	4,651
Total	10,730	7,484
Recorded Investment
With an allowance recorded	4,292	2,833
With no related allowance	6,441	4,655
Total	10,733	7,488
Related Allowance	2,170	1,554
Average Recorded Investment
With an allowance recorded	5,275	4,274
With no related allowance	6,744	5,093
Total	12,019	9,367
Interest Income Recognized
With an allowance recorded	152	106
With no related allowance	206	59
Total	358	165
Agricultural and farmland
Unpaid Principal Balance
With an allowance recorded	590	406
With no related allowance	13,369	10,888
Total	13,959	11,294
Recorded Investment
With an allowance recorded	590	406
With no related allowance	13,376	10,889
Total	13,966	11,295
Related Allowance	105	39
Average Recorded Investment
With an allowance recorded	464	566
With no related allowance	14,826	8,815
Total	15,290	9,381
Interest Income Recognized
With an allowance recorded	12	16
With no related allowance	824	526
Total	836	542
Commercial real estate - owner occupied
Unpaid Principal Balance
With an allowance recorded	830	2,323
With no related allowance	10,089	16,891
Total	10,919	19,214
Recorded Investment
With an allowance recorded	830	2,322
With no related allowance	10,097	16,880
Total	10,927	19,202
Related Allowance	270	1,066
Average Recorded Investment
With an allowance recorded	874	3,574
With no related allowance	10,190	12,217
Total	11,064	15,791
Interest Income Recognized
With an allowance recorded	43	67
With no related allowance	483	384
Total	526	451
Commercial real estate - non-owner occupied
Unpaid Principal Balance
With an allowance recorded	99	103
With no related allowance	3,297	7,715
Total	3,396	7,818
Recorded Investment
With an allowance recorded	99	103
With no related allowance	3,299	7,717
Total	3,398	7,820
Related Allowance	70	73
Average Recorded Investment
With an allowance recorded	101	640
With no related allowance	3,465	7,110
Total	3,566	7,750
Interest Income Recognized
With an allowance recorded	7	7
With no related allowance	131	147
Total	138	154
Multi-family
Unpaid Principal Balance
With an allowance recorded		1,362
With no related allowance	1,328	316
Total	1,328	1,678
Recorded Investment
With an allowance recorded		1,362
With no related allowance	1,324	316
Total	1,324	1,678
Related Allowance		267
Average Recorded Investment
With an allowance recorded		1,472
With no related allowance	1,344	355
Total	1,344	1,827
Interest Income Recognized
With an allowance recorded		66
With no related allowance	9	17
Total	9	83
Construction and land development
Unpaid Principal Balance
With an allowance recorded	3,679	3,136
With no related allowance	104	198
Total	3,783	3,334
Recorded Investment
With an allowance recorded	3,679	3,135
With no related allowance	103	196
Total	3,782	3,331
Related Allowance	567	1,714
Average Recorded Investment
With an allowance recorded	3,988	2,593
With no related allowance	107	528
Total	4,095	3,121
Interest Income Recognized
With an allowance recorded	171	161
With no related allowance	4	3
Total	175	164
One-to-four family residential
Unpaid Principal Balance
With an allowance recorded	3,401	3,022
With no related allowance	7,986	9,874
Total	11,387	12,896
Recorded Investment
With an allowance recorded	3,390	3,008
With no related allowance	7,959	9,829
Total	11,349	12,837
Related Allowance	822	1,265
Average Recorded Investment
With an allowance recorded	3,414	3,377
With no related allowance	8,360	10,706
Total	11,774	14,083
Interest Income Recognized
With an allowance recorded	79	82
With no related allowance	240	168
Total	319	250
Municipal, consumer, and other
Unpaid Principal Balance
With an allowance recorded	9,138	230
With no related allowance	4,775	184
Total	13,913	414
Recorded Investment
With an allowance recorded	9,111	231
With no related allowance	4,761	185
Total	13,872	416
Related Allowance	2,176	67
Average Recorded Investment
With an allowance recorded	9,284	302
With no related allowance	4,874	297
Total	14,158	599
Interest Income Recognized
With an allowance recorded	396	5
With no related allowance	104	5
Total	$ 500	$ 10

LOANS AND THE ALLOWANCE FOR L_7

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Past Due Status (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accruing Interest
Current	$ 2,141,360	$ 2,119,814
Nonaccrual	19,019	15,876
Total	2,163,826	2,144,257
30 - 89 Days Past Due
Accruing Interest
Past due	3,346	5,803
90+ Days Past Due
Accruing Interest
Past due	101	2,764
Commercial and industrial
Accruing Interest
Current	301,975	356,481
Nonaccrual	4,642	2,151
Total	307,175	360,501
Commercial and industrial | 30 - 89 Days Past Due
Accruing Interest
Past due	558	122
Commercial and industrial | 90+ Days Past Due
Accruing Interest
Past due		1,747
Agricultural and farmland
Accruing Interest
Current	201,519	207,791
Nonaccrual	6,257	1,976
Total	207,776	209,875
Agricultural and farmland | 30 - 89 Days Past Due
Accruing Interest
Past due		108
Commercial real estate - owner occupied
Accruing Interest
Current	228,218	249,698
Nonaccrual	2,003	4,654
Total	231,162	255,074
Commercial real estate - owner occupied | 30 - 89 Days Past Due
Accruing Interest
Past due	941	538
Commercial real estate - owner occupied | 90+ Days Past Due
Accruing Interest
Past due		184
Commercial real estate - non-owner occupied
Accruing Interest
Current	579,626	532,241
Nonaccrual		611
Total	579,757	533,910
Commercial real estate - non-owner occupied | 30 - 89 Days Past Due
Accruing Interest
Past due	131	1,058
Multi-family
Accruing Interest
Current	177,696	134,368
Nonaccrual	1,377
Total	179,073	135,925
Multi-family | 30 - 89 Days Past Due
Accruing Interest
Past due		1,361
Multi-family | 90+ Days Past Due
Accruing Interest
Past due		196
Construction and land development
Accruing Interest
Current	224,716	236,798
Nonaccrual	31	395
Total	224,887	237,275
Construction and land development | 30 - 89 Days Past Due
Accruing Interest
Past due	140	82
One-to-four family residential
Accruing Interest
Current	307,712	304,439
Nonaccrual	4,464	5,915
Total	313,580	313,108
One-to-four family residential | 30 - 89 Days Past Due
Accruing Interest
Past due	1,329	2,154
One-to-four family residential | 90+ Days Past Due
Accruing Interest
Past due	75	600
Municipal, consumer, and other
Accruing Interest
Current	119,898	97,998
Nonaccrual	245	174
Total	120,416	98,589
Municipal, consumer, and other | 30 - 89 Days Past Due
Accruing Interest
Past due	247	380
Municipal, consumer, and other | 90+ Days Past Due
Accruing Interest
Past due	$ 26	$ 37

LOANS AND THE ALLOWANCE FOR L_8

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 2,163,826	$ 2,144,257
Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,964,810	1,945,019
Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	126,596	127,595
Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	72,420	71,643
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	307,175	360,501
Commercial and industrial | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	267,645	315,815
Commercial and industrial | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	27,114	35,176
Commercial and industrial | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,416	9,510
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	207,776	209,875
Agricultural and farmland | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	180,735	185,598
Agricultural and farmland | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,267	12,116
Agricultural and farmland | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	14,774	12,161
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	231,162	255,074
Commercial real estate - owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	198,710	217,017
Commercial real estate - owner occupied | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	21,745	17,845
Commercial real estate - owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	10,707	20,212
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	579,757	533,910
Commercial real estate - non-owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	531,694	486,859
Commercial real estate - non-owner occupied | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	46,092	39,231
Commercial real estate - non-owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,971	7,820
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	179,073	135,925
Multi-family | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	175,807	131,583
Multi-family | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,771	2,468
Multi-family | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,495	1,874
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	224,887	237,275
Construction and land development | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	217,120	227,775
Construction and land development | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	3,582	5,663
Construction and land development | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	4,185	3,837
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	313,580	313,108
One-to-four family residential | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	287,036	282,704
One-to-four family residential | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	13,546	14,599
One-to-four family residential | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,998	15,805
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	120,416	98,589
Municipal, consumer, and other | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	106,063	97,668
Municipal, consumer, and other | Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	479	497
Municipal, consumer, and other | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 13,874	$ 424

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Financial Effect of Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	7	9	16
Recorded Investment, Pre-Modification	$ 1,099	$ 6,870	$ 4,576
Recorded Investment, Post-Modification	1,099	6,911	3,903
Charge-offs and Specific Reserves		684	$ 891
Troubled debt restructuring subsequent payment defaults within 12 months	98	927
Troubled debt restructurings	$ 9,315	$ 13,362
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	3	2	4
Recorded Investment, Pre-Modification	$ 516	$ 296	$ 659
Recorded Investment, Post-Modification	$ 516	296	659
Charge-offs and Specific Reserves		157	$ 165
Troubled debt restructuring subsequent payment defaults within 12 months		$ 47
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	2	1
Recorded Investment, Pre-Modification	$ 392	$ 171
Recorded Investment, Post-Modification	392	171
Troubled debt restructuring subsequent payment defaults within 12 months	$ 98	$ 166
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	1	2	4
Recorded Investment, Pre-Modification	$ 170	$ 5,173	$ 613
Recorded Investment, Post-Modification	$ 170	5,189	$ 613
Charge-offs and Specific Reserves		47
Troubled debt restructuring subsequent payment defaults within 12 months		$ 172
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan			4
Recorded Investment, Pre-Modification			$ 2,954
Recorded Investment, Post-Modification			2,281
Charge-offs and Specific Reserves			$ 674
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	1	4	4
Recorded Investment, Pre-Modification	$ 21	$ 1,230	$ 350
Recorded Investment, Post-Modification	$ 21	1,255	350
Charge-offs and Specific Reserves		480	$ 52
Troubled debt restructuring subsequent payment defaults within 12 months		$ 542

LOANS AND THE ALLOWANCE FOR _10

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Accretable Yield For Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in accretable yield for loans acquired with deteriorated credit quality
Beginning balance	$ 2,101	$ 2,723	$ 3,647
Reclassification from non-accretable difference	822	2,092	4,061
Accretion income	(1,261)	(2,714)	(4,985)
Ending balance	$ 1,662	$ 2,101	$ 2,723

LOAN SERVICING - Mortgage Servi

LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$ 10,918
Ending balance	8,518	$ 10,918
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	10,918	10,289	$ 10,604
Capitalized servicing rights	1,018	885	1,049
Fair value adjustment	(3,418)	(256)	(1,364)
Ending balance	8,518	10,918	$ 10,289
Mortgage loans serviced for others	$ 1,152,535	$ 1,229,953

BANK PREMISES AND EQUIPMENT (De

BANK PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	$ 97,078	$ 95,433
Less accumulated depreciation	43,091	40,697
Total bank premises and equipment, net	53,987	54,736
Land, buildings, and improvements
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	75,878	75,168
Furniture, fixtures, and equipment
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	$ 21,200	$ 20,265

BANK PREMISES AND EQUIPMENT - D

BANK PREMISES AND EQUIPMENT - Depreciation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
BANK PREMISES AND EQUIPMENT
Total depreciation expense	$ 2,709	$ 3,219	$ 3,292
Building and improvements
BANK PREMISES AND EQUIPMENT
Total depreciation expense	1,813	2,107	1,908
Furniture, fixtures, and equipment
BANK PREMISES AND EQUIPMENT
Total depreciation expense	$ 896	$ 1,112	$ 1,384

FORECLOSED ASSETS - Activity (D

FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
FORECLOSED ASSETS
Beginning balance	$ 9,559	$ 16,545	$ 16,224
Transfers from loans	2,520	2,518	10,212
Capitalized improvements	41
Proceeds from sales	(5,460)	(6,851)	(9,049)
Sales through loan origination	(2,046)	(1,220)	(150)
Net gain (loss) on sales	1,048	(268)	1,727
Direct write-downs	(563)	(1,165)	(2,419)
Ending balance	$ 5,099	$ 9,559	$ 16,545

FORECLOSED ASSETS - Gains (loss

FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
FORECLOSED ASSETS
Direct write-downs	$ (563)	$ (1,165)	$ (2,419)
Net gain (loss) on sales	1,048	(268)	1,727
Guarantee reimbursements	80
Gain on settlement	375
Gain on foreclosure		96	974
Gains (losses) on foreclosed assets	$ 940	$ (1,337)	$ 282

FORECLOSED ASSETS - Additional

FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 5,099	$ 9,559	$ 16,545	$ 16,224
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 1,037	$ 2,558
Number of loans in the process of foreclosure | loan	10	14
Loan amount in the process of foreclosure	$ 588	$ 1,097

CORE DEPOSIT INTANGIBLE ASSET_2

CORE DEPOSIT INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Core deposit intangible assets:
Total	$ 4,030	$ 5,453
Core Deposits
Core deposit intangible assets:
Gross carrying amount	21,718	21,718
Accumulated amortization	(17,688)	(16,265)
Total	$ 4,030	$ 5,453

CORE DEPOSIT INTANGIBLE ASSET_3

CORE DEPOSIT INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortization of core deposit intangible assets:
2020	$ 1,232
2021	1,047
2022	852
2023	330
2024	316
Thereafter	253
Total	$ 4,030	$ 5,453

DEPOSITS - Interest bearing Dep

DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
DEPOSITS
Interest-bearing demand	$ 814,639	$ 856,919
Money market	477,765	427,730
Savings	438,927	421,698
Deposits of executive officers, directors, significant shareholders	356,408	424,747
Total interest-bearing deposits	$ 2,087,739	$ 2,131,094

DEPOSITS - Interest bearing D_2

DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
DEPOSITS
Reciprocal transaction deposits, Money market deposits	$ 14,309	$ 20,512
Reciprocal transaction deposits, Time deposits	3,538	4,895
Time deposits in denominations of $250,000 or more	44,754	36,875
Time deposits in denominations of $100,000 or more	130,293	153,717
Deposits of executive officers, directors, significant shareholders	356,408	424,747
Related parties
DEPOSITS
Deposits of executive officers, directors, significant shareholders	$ 11,949	$ 12,717

DEPOSITS - Interest expense on

DEPOSITS - Interest expense on Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Maturities of Time Deposits:
2020	$ 257,937
2021	58,929
2022	23,423
2023	8,926
2024	7,023
Thereafter	170
Total	$ 356,408	$ 424,747

DEPOSITS - Interest expense o_2

DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DEPOSITS
Interest-bearing demand	$ 1,474	$ 1,378	$ 908
Money market	1,837	685	704
Savings	278	283	293
Time	4,343	3,541	3,054
Total interest expense on deposits	$ 7,932	$ 5,887	$ 4,959

SECURITIES SOLD UNDER AGREEME_3

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
Balance at end of year	$ 44,433	$ 46,195
Weighted average rate as of end of year	0.20%	0.12%
Fair value of securities underlying the agreements	$ 57,760	$ 61,092
Carrying value of securities underlying the agreements	$ 57,760	$ 61,092

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
BORROWINGS
Borrowings	$ 0	$ 0
Loans pledged, served as collateral	548,229	538,537
Loans pledged in association with Mortgage Partnership Finance Program	355	355
FHLB Line of credit
BORROWINGS
Borrowings	0	0
FRB Line of credit
BORROWINGS
Borrowings	0	0
Loans pledged, served as collateral	$ 515	$ 490

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)subsidiary	Dec. 31, 2018USD ($)
SUBORDINATED DEBENTURES
Number of subsidiary business trusts | subsidiary	5
Subordinated debentures	$ 37,583	$ 37,517
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED DEBENTURES
Subordinated debentures	10,310	10,310
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED DEBENTURES
Subordinated debentures	10,310	10,310
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED DEBENTURES
Subordinated debentures	5,155	5,155
FFBI Capital Trust I
SUBORDINATED DEBENTURES
Subordinated debentures	7,217	7,217
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Subordinated debentures	$ 4,591	$ 4,525

SUBORDINATED DEBENTURES - Inter

SUBORDINATED DEBENTURES - Interest rate and maturities (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED DEBENTURES
Variable Interest Rate Basis	LIBOR	LIBOR
Interest Rate	4.74%	5.19%
Heartland Bancorp, Inc. Capital Trust B | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.75%
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED DEBENTURES
Variable Interest Rate Basis	LIBOR	LIBOR
Interest Rate	3.42%	4.32%
Heartland Bancorp, Inc. Capital Trust C | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	1.53%
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED DEBENTURES
Variable Interest Rate Basis	LIBOR	LIBOR
Interest Rate	3.24%	4.14%
Heartland Bancorp, Inc. Capital Trust D | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	1.35%
FFBI Capital Trust I
SUBORDINATED DEBENTURES
Variable Interest Rate Basis	LIBOR	LIBOR
Interest Rate	4.79%	5.24%
FFBI Capital Trust I | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.80%
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Variable Interest Rate Basis	LIBOR	LIBOR
Interest Rate	4.79%	5.69%
National Bancorp Statutory Trust I | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.90%

SUBORDINATED DEBENTURES - Narra

SUBORDINATED DEBENTURES - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)period	Dec. 31, 2018
SUBORDINATED DEBENTURES
Maximum deferred interest period quarters | period	10
Period shorten the maturity date from the event	90 days
Trust preferred securities qualified as Tier 1 capital	100.00%	100.00%
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Contractual obligation | $	$ 5,773

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 25, 2019	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
Cash pledged		$ 710
Securities pledged		8,713		$ 589
Interest rate swap | Variable-rate borrowings
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount		138,356		112,947
Interest rate swap | Cash flow hedge | Variable-rate borrowings
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount		17,000	$ 10,000	10,000	$ 10,000
Amount received	$ 174
Unrealized gain		52
Offsetting interest rate swap contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount		$ 138,356		$ 112,947

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Designated | Cash flow hedge
DERIVATIVE FINANCIAL INSTRUMENTS
Total	$ (676)	$ 151
Designated | Cash flow hedge | Other assets
DERIVATIVE FINANCIAL INSTRUMENTS
Fair value recorded in other assets		151
Designated | Cash flow hedge | Other liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Fair value recorded in other liabilities	(676)
Not designated | Interest rate swap | Other assets
DERIVATIVE FINANCIAL INSTRUMENTS
Fair value recorded in other assets	8,642	3,074
Not designated | Interest rate swap | Other liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Fair value recorded in other liabilities	$ (8,642)	$ (3,074)

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - Cash flow hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ 87	$ 175	$ 167
Taxable loan interest income
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	116	$ 175	275
Subordinated debentures interest expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ (29)		$ (108)

DERIVATIVE FINANCIAL INSTRUME_6

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not designated - Interest rate swap - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
Gross gains	$ 13,537	$ 1,758	$ 1,468
Gross losses	(13,500)	$ (1,758)	$ (1,468)
Net gains (losses)	$ 37

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	$ 340,396	$ 323,916	$ 326,246
Income tax expense (benefit)	(711)
Other comprehensive income (loss)	12,120	(3,791)	(1,364)
Balance	332,918	340,396	323,916
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(4,288)	(375)	989
Adoption of ASU 2016-01		(122)
Other comprehensive income (loss) before reclassifications	11,760	(5,775)	(2,079)
Reclassifications	(351)	1,984	715
Other comprehensive income (loss), before tax	11,409
Income tax expense (benefit)	(711)
Other comprehensive income (loss)	12,120	(3,791)	(1,364)
Balance	7,832	(4,288)	(375)
Unrealized gains (losses) on available-for-sale securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(4,561)	(1,288)	(511)
Adoption of ASU 2016-01		(122)
Other comprehensive income (loss) before reclassifications	12,458	(5,692)	(2,052)
Reclassifications		2,541	1,275
Other comprehensive income (loss), before tax	12,458
Income tax expense (benefit)	(762)
Other comprehensive income (loss)	13,220	(3,151)	(777)
Balance	8,659	(4,561)	(1,288)
Unrealized gains (losses) on held-to-maturity securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	122	504	897
Reclassifications	(264)	(382)	(393)
Other comprehensive income (loss), before tax	(264)
Income tax expense (benefit)	(11)
Other comprehensive income (loss)	(253)	(382)	(393)
Balance	(131)	122	504
Derivatives
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	151	409	603
Other comprehensive income (loss) before reclassifications	(698)	(83)	(27)
Reclassifications	(87)	(175)	(167)
Other comprehensive income (loss), before tax	(785)
Income tax expense (benefit)	62
Other comprehensive income (loss)	(847)	(258)	(194)
Balance	$ (696)	$ 151	$ 409

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Oct. 11, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
INCOME TAXES
Deferred tax asset	$ 534	$ 534	$ 3,406
Income tax benefit	500	534	$ (5,256)	$ (869)	$ (870)
Deferred income tax expense in accordance with ASC 740-20-45-8	$ 2,741	$ 2,741

INCOME TAXES - Allocation (Deta

INCOME TAXES - Allocation (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Oct. 11, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal			$ 4,849
State			3,102	$ 869	$ 870
Total current			7,951	869	870
Deferred
Federal			(1,437)
State			(724)
Change in tax status			(534)
Total deferred			(2,695)
Income tax expense	$ (534)	$ (500)	$ 5,256	$ 869	$ 870

INCOME TAXES - Federal income t

INCOME TAXES - Federal income tax (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Oct. 11, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Federal income tax expense:
Statutory federal income tax			$ 3,933
Statutory federal income tax (as a percent)			5.50%
Increase (decrease) resulting from:
State taxes, net of federal benefit			$ 2,212	$ 869	$ 870
State taxes, net of federal benefit (as a percent)			3.10%	1.30%	1.50%
Change in tax status			$ (534)
Change in tax status (as a percent)			(0.80%)
Other			$ (355)
Other (as a percent)			(0.50%)
Income tax expense	$ (534)	$ (500)	$ 5,256	$ 869	$ 870
Total (as a percent)			7.30%	1.30%	1.50%

INCOME TAXES - Components of ne

INCOME TAXES - Components of net deferred tax asset (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 11, 2019
Deferred tax assets
Allowance for loan losses	$ 6,309
Compensation related	5,859
Nonaccrual interest	858
Foreclosed assets	574
Goodwill	531
Other	1,282
Total deferred tax assets	15,413
Deferred tax liabilities
Fixed asset depreciation	4,201
Mortgage servicing rights	2,428
Other purchase accounting adjustments	1,356
Intangible assets	841
Prepaid assets	504
Net unrealized gain on securities available for sale	2,251
Other	426
Total deferred tax liabilities	12,007
Net deferred tax asset	$ 3,406	$ 534

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)employee	Dec. 31, 2018USD ($)employee	Dec. 31, 2017USD ($)
EMPLOYEE BENEFIT PLANS
Contribution liability	$ 6,194	$ 6,017
Stop loss coverage	$ 130
Number of Participant | employee	566	570
Claims and Administrative service fees	$ 5,638	$ 6,139	$ 6,178
SERP
EMPLOYEE BENEFIT PLANS
Defined contribution plan term	30 years
Deferred compensation liability	$ 12,789	9,179
Compensation expense	4,291	505	514
Profit Sharing Plan
EMPLOYEE BENEFIT PLANS
Contribution expense	$ 1,223	$ 1,109	$ 920
Employees contributions vesting period	6 years

STOCK-BASED COMPENSATION PLAN_2

STOCK-BASED COMPENSATION PLANS (Details) $ / shares in Units, $ in Thousands	Jan. 28, 2020shares	Sep. 01, 2019$ / sharesshares	Sep. 30, 2019$ / shares	Dec. 31, 2019USD ($)installmentitem$ / sharesshares	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Oct. 10, 2019$ / shares	Oct. 09, 2019shares	Dec. 31, 2016$ / shares
STOCK-BASED COMPENSATION PLANS
Number of shares participant is entitled to receive | item				1
Special dividend per share | $ / shares							$ 9.43
Restricted Stock Units | Key employees
STOCK-BASED COMPENSATION PLANS
Shares granted	70,400
Vesting period	4 years
Restricted Stock Units | Non employee directors
STOCK-BASED COMPENSATION PLANS
Shares granted	2,750
Stock Appreciation Rights
STOCK-BASED COMPENSATION PLANS
Granted (in units)				110,160
Granted (in dollars per unit) | $ / shares				$ 16.32
Stock appreciation rights plan liability recorded for the outstanding units | $				$ 409	$ 1,884
Compensation expense (benefit) | $				343	540	$ 291
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $				140	0
Stock appreciation rights plan liability recorded for the previously exercised units | $				$ 1,512	$ 176
Number of equal annual instalments in which the liability recorded for previously exercised units will be paid | installment				5
Outstanding (in dollars per unit) | $ / shares				$ 16.32	$ 5.73	$ 5.66			$ 5.66
Special dividend per share | $ / shares		$ 9.43
Stock Appreciation Rights | Key employees
STOCK-BASED COMPENSATION PLANS
Granted (in units)		110,160
Granted (in dollars per unit) | $ / shares		$ 25.75	$ 16.32
Fully vested on grant date		79,560
Vest ratable (in units)		30,600
Vesting period		4 years
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares								1,820,000

STOCK-BASED COMPENSATION PLAN_3

STOCK-BASED COMPENSATION PLANS - Summary (Details) - Stock Appreciation Rights - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Appreciation Rights
Outstanding (in units)	91,800	116,280	116,280
Granted (in units)	110,160
Exercised (in units)	(91,800)	(24,480)
Outstanding (in units)	110,160	91,800	116,280
Exercisable (in shares)	79,560	91,800
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 5.73	$ 5.66	$ 5.66
Granted (in dollars per unit)	16.32
Exercised (in dollars per unit)	5.73	5.43
Outstanding (in dollars per unit)	16.32	5.73	$ 5.66
Exercisable (in dollars per unit)	$ 16.32	$ 5.73
Weighted average remaining contractual term	9 years 8 months 12 days

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	2.50%	1.875%
Heartland Bank
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 315,516	$ 332,391
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	180,071	184,127
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	225,088	230,159
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	295,385	313,406
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	135,053	138,095
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	180,071	184,127
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	295,385	313,406
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	101,290	103,572
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	146,307	149,603
Tier 1 Capital (to Average Assets), Actual Amount	295,385	313,406
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	115,281	113,668
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 144,102	$ 142,085
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	14.02%	14.44%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.12%	13.62%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.12%	13.62%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	10.25%	11.03%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
State Bank of Lincoln
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 35,390	$ 38,059
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	16,104	14,488
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	20,130	18,110
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	33,222	36,535
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	12,078	10,866
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	16,104	14,488
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	33,222	36,535
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	9,058	8,150
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	13,084	11,772
Tier 1 Capital (to Average Assets), Actual Amount	33,222	36,535
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	13,531	14,319
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 16,914	$ 17,899
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	17.58%	21.02%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.50%	20.17%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.50%	20.17%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	9.82%	10.21%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%
Consolidated HBT
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 356,994	$ 372,472
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	196,358	198,730
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	334,695	351,963
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	147,268	149,047
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	298,277	315,611
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	110,451	111,785
Tier 1 Capital (to Average Assets), Actual Amount	334,695	351,963
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	$ 129,027	$ 130,393
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	14.54%	14.99%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.64%	14.17%
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	12.15%	12.71%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	10.38%	10.80%
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of assets from level 2 to level 1	0	0
Transfer of assets in to level 3	0	0
Transfer of assets out of level 3	0	0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of liabilities from level 2 to level 1	0	0
Transfer of liabilities in to level 3	0	0
Transfer of liabilities out of level 3	0	0
Securities available-for-sale, at fair value	592,404	679,526
Equity securities	3,241	3,081
Fair value	8,518	10,918
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	49,615	46,866
Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	133,738	161,450
Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	200,678	234,303
Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	134,954	150,081
Mortgage-backed: Private-label
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value		256
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	73,419	86,570
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,241	3,081
Fair value	8,518	10,918
Derivative financial assets	8,642	3,225
Derivative financial liabilities	9,318	3,074
Recurring | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	49,615	46,866
Recurring | Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	133,738	161,450
Recurring | Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	200,678	234,303
Recurring | Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	134,954	150,081
Recurring | Mortgage-backed: Private-label
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value		256
Recurring | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	73,419	86,570
Recurring | Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,241	3,081
Recurring | Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivative financial assets	8,642	3,225
Derivative financial liabilities	9,318	3,074
Recurring | Level 2 | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	49,615	46,866
Recurring | Level 2 | Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	133,738	161,450
Recurring | Level 2 | Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	200,678	234,303
Recurring | Level 2 | Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	134,954	150,081
Recurring | Level 2 | Mortgage-backed: Private-label
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value		256
Recurring | Level 2 | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Securities available-for-sale, at fair value	73,419	86,570
Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 8,518	$ 10,918

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 8,518	$ 10,918
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	8,518	10,918
Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 8,518	$ 10,918
Valuation Technique	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Recurring | Level 3 | Constant pre-payment rates (CPR)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 8,518	$ 10,918
Recurring | Level 3 | Constant pre-payment rates (CPR) | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.070	0.075
Recurring | Level 3 | Constant pre-payment rates (CPR) | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.685	0.876
Recurring | Level 3 | Constant pre-payment rates (CPR) | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.123	0.089
Recurring | Level 3 | Discount rate | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.090	0.090
Recurring | Level 3 | Discount rate | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.110	0.110
Recurring | Level 3 | Discount rate | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.090	0.090

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	$ 4,531	$ 2,800
Collateral-dependent impaired loans	15,811	7,355
Bank premises held for sale	121	749
Foreclosed assets	5,099	9,559
Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	4,531	2,800
Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Collateral-dependent impaired loans	15,811	7,355
Bank premises held for sale	121	749
Foreclosed assets	$ 5,099	$ 9,559

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Nonrecurring - Level 3 $ in Thousands	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Collateral-dependent impaired loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Collateral-dependent impaired loans | Appraisal of collateral
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 15,811	$ 7,355
Collateral-dependent impaired loans | Appraisal of collateral | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.20	0.20
Collateral-dependent impaired loans | Appraisal of collateral | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.40	0.40
Collateral-dependent impaired loans | Appraisal of collateral | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.25	0.25
Bank premises held for sale
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Bank premises held for sale | Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 121	$ 749
Measurement input	0.07	0.07
Bank premises held for sale | Appraisal | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.07	0.07
Foreclosed assets
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Foreclosed assets | Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 5,099	$ 9,559
Measurement input	0.07	0.07
Foreclosed assets | Appraisal | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.07	0.07

FAIR VALUE OF FINANCIAL INSTR_7

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Securities held-to-maturity fair value	$ 90,529	$ 121,506
Level 1 | Carrying Amount
Financial assets:
Cash and cash equivalents	283,971	186,879
Interest-bearing time deposits with banks	248	248
Level 1 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	283,971	186,879
Interest-bearing time deposits with banks	248	248
Level 2 | Carrying Amount
Financial assets:
Securities held-to-maturity fair value	88,477	121,715
Accrued interest receivable	13,951	15,300
Financial liabilities:
Securities sold under agreements to repurchase	44,433	46,195
Accrued interest payable	1,132	1,207
Level 2 | Estimated Fair Value
Financial assets:
Securities held-to-maturity fair value	90,529	121,506
Accrued interest receivable	13,951	15,300
Financial liabilities:
Securities sold under agreements to repurchase	44,433	46,195
Accrued interest payable	1,132	1,207
Level 3 | Carrying Amount
Financial assets:
Restricted stock	2,425	2,719
Loans, net	2,141,527	2,123,748
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	356,408	424,747
Subordinated debentures	37,583	37,517
Level 3 | Estimated Fair Value
Financial assets:
Restricted stock	2,425	2,719
Loans, net	2,181,103	2,125,698
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	355,340	419,333
Subordinated debentures	$ 31,959	$ 32,149

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 8,991	$ 10,358
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 542,705	$ 524,112

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Lease Commitments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
Leases renewal options	true
Lease Commitments
2020	$ 93
2021	86
2022	51
2023	21
2024	21
Thereafter	3
Total	$ 275
Minimum
COMMITMENTS AND CONTINGENCIES
Lease renewal term	3 years
Maximum
COMMITMENTS AND CONTINGENCIES
Lease renewal term	5 years

CONDENSED PARENT COMPANY ONLY_3

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 283,971	$ 186,879
Other assets	16,640	7,173
Total assets	3,245,103	3,249,569
LIABILITIES
Subordinated debentures	37,583	37,517
Other liabilities	53,314	29,491
Total liabilities	2,912,185	2,909,173
STOCKHOLDERS' EQUITY	332,918	340,396	$ 323,916	$ 326,246
Total liabilities and stockholders’ equity	3,245,103	3,249,569
Reportable Legal Entities | Consolidated HBT
ASSETS
Cash and cash equivalents	4,978	2,169
Bank	363,860	375,194
Non-bank	1,201	1,251
Other assets	1,081	422
Total assets	371,120	379,036
LIABILITIES
Subordinated debentures	37,583	37,517
Other liabilities	619	1,123
Total liabilities	38,202	38,640
STOCKHOLDERS' EQUITY	332,918	340,396
Total liabilities and stockholders’ equity	$ 371,120	$ 379,036

CONDENSED PARENT COMPANY ONLY_4

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Statements of income (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Oct. 11, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other income			$ 4,108	$ 3,560	$ 4,976
Total noninterest income			32,751	31,240	33,171
Interest expense			9,935	7,990	6,595
INCOME BEFORE INCOME TAX EXPENSE			72,121	64,668	56,973
INCOME TAX EXPENSE	$ (534)	$ (500)	5,256	869	870
NET INCOME			66,865	63,799	56,103
Reportable Legal Entities | Consolidated HBT
Bank			109,969	44,446	57,327
Non-bank			385	941	1,900
Bank			(41,202)	23,239	(115)
Non-bank			(151)	(1,984)	(404)
Other income			52	1	35
Total noninterest income			69,053	66,643	58,743
Interest expense			1,922	1,795	1,525
Other expense			1,025	1,085	1,134
Total expenses			2,947	2,880	2,659
INCOME BEFORE INCOME TAX EXPENSE			66,106	63,763	56,084
INCOME TAX EXPENSE			(759)	(36)	(19)
NET INCOME			$ 66,865	$ 63,799	$ 56,103

CONDENSED PARENT COMPANY ONLY_5

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 66,865	$ 63,799	$ 56,103
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of subordinated debt purchase accounting adjustment	66	66	65
Net cash provided by operating activities	89,092	79,994	72,082
Net Cash Provided by (Used in) Investing Activities [Abstract]
Net cash provided by (used in) investing activities	115,340	65,088	(90,309)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock	138,493
Repurchase of common stock		907
Net cash used in financing activities	(107,340)	(123,886)	(54,831)
NET CHANGE IN CASH AND EQUIVALENTS	97,092	21,196	(73,058)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	186,879	165,683	238,741
CASH AND CASH EQUIVALENTS AT END OF YEAR	283,971	186,879	165,683
Reportable Legal Entities | Consolidated HBT
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	66,865	63,799	56,103
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of consolidated subsidiaries	41,353	(21,255)	519
Amortization of subordinated debt purchase accounting adjustment	66	66	65
Changes in other assets and liabilities, net	(1,912)	700	306
Net cash provided by operating activities	106,372	43,310	56,993
Net Cash Provided by (Used in) Investing Activities [Abstract]
Capital contribution to bank subsidiary	(17,000)
Capital contribution to non-bank subsidiary	(100)
Net cash provided by (used in) investing activities	(17,100)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock	138,493
Repurchase of common stock		(907)
Cash dividends	(224,956)	(42,621)	(57,069)
Net cash used in financing activities	(86,463)	(43,528)	(57,069)
NET CHANGE IN CASH AND EQUIVALENTS	2,809	(218)	(76)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	2,169	2,387	2,463
CASH AND CASH EQUIVALENTS AT END OF YEAR	$ 4,978	$ 2,169	$ 2,387