Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'HEARTLAND FINANCIAL USA INC | ' |
Entity Central Index Key | '0000920112 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 18,359,484 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $160,225 | $160,223 |
Federal funds sold and other short-term investments | 4,783 | 7,831 |
Cash and cash equivalents | 165,008 | 168,054 |
Time deposits in other financial institutions | 3,605 | 0 |
Securities: | ' | ' |
Trading, at fair value | 1,219 | 380 |
Available for sale, at fair value (cost of $1,409,106 at September 30, 2013, and $1,472,565 at December 31, 2012) | 1,391,610 | 1,506,075 |
Held to maturity, at cost (fair value of $53,893 at September 30, 2013, and $55,982 at December 31, 2012) | 53,841 | 55,502 |
Loans held for sale | 61,326 | 96,165 |
Loans and leases receivable: | ' | ' |
Held to maturity | 2,901,706 | 2,821,549 |
Loans covered by loss share agreements | 5,876 | 7,253 |
Allowance for loan and lease losses | -41,311 | -38,715 |
Loans and leases receivable, net | 2,866,271 | 2,790,087 |
Premises, furniture and equipment, net | 129,029 | 128,294 |
Other real estate, net | 33,018 | 35,822 |
Goodwill | 30,627 | 30,627 |
Other intangible assets, net | 23,435 | 18,486 |
Cash surrender value on life insurance | 79,238 | 75,480 |
FDIC indemnification asset | 795 | 749 |
Other assets | 73,708 | 84,832 |
TOTAL ASSETS | 4,912,730 | 4,990,553 |
Deposits: | ' | ' |
Demand | 1,073,688 | 974,232 |
Savings | 2,043,397 | 2,004,438 |
Time | 807,913 | 866,990 |
Total deposits | 3,924,998 | 3,845,660 |
Short-term borrowings | 224,048 | 224,626 |
Other borrowings | 322,538 | 389,025 |
Accrued expenses and other liabilities | 44,543 | 126,703 |
TOTAL LIABILITIES | 4,516,127 | 4,586,014 |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock (par value $1 per share; authorized 25,000,000 shares; issued 16,952,561 shares at September 30, 2013 and 16,827,835 shares at December 31, 2012) | 16,953 | 16,828 |
Capital surplus | 52,641 | 50,359 |
Retained earnings | 259,172 | 236,279 |
Accumulated other comprehensive income (loss) | -13,819 | 16,641 |
Treasury stock at cost (1,508 shares at September 30, 2013, and 0 shares at December 31, 2012) | -42 | 0 |
TOTAL STOCKHOLDERS' EQUITY | 396,603 | 401,805 |
Noncontrolling interest | 0 | 2,734 |
TOTAL EQUITY | 396,603 | 404,539 |
TOTAL LIABILITIES AND EQUITY | 4,912,730 | 4,990,553 |
Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock | 0 | 0 |
Series C Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock | $81,698 | $81,698 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Cost of available for sale securities | $1,409,106,000 | $1,472,565,000 |
Fair value of held to maturity securities | 53,893,000 | 55,982,000 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,952,561 | 16,827,835 |
Treasury stock shares | 1,508 | 0 |
Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 20,604 | 20,604 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 16,000 | 16,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series C Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 81,698 | 81,698 |
Preferred stock, shares issued | 81,698 | 81,698 |
Preferred stock, shares outstanding | 81,698 | 81,698 |
Preferred stock, liquidation value | $81,700,000 | $81,700,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INTEREST INCOME: | ' | ' | ' | ' |
Interest and fees on loans and leases | $40,154 | $39,208 | $119,707 | $116,989 |
Interest on securities: | ' | ' | ' | ' |
Taxable | 4,803 | 4,452 | 14,174 | 17,050 |
Nontaxable | 3,443 | 2,896 | 10,001 | 7,786 |
Interest on federal funds sold | 0 | 0 | 0 | 1 |
Interest on interest bearing deposits in other financial institutions | 3 | 3 | 9 | 5 |
TOTAL INTEREST INCOME | 48,403 | 46,559 | 143,891 | 141,831 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Interest on deposits | 4,769 | 5,504 | 14,911 | 16,883 |
Interest on short-term borrowings | 131 | 215 | 387 | 652 |
Interest on other borrowings (includes $523 and $1,552 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the three and nine months ended September 30, 2013, respectively) | 3,623 | 4,028 | 11,122 | 12,114 |
TOTAL INTEREST EXPENSE | 8,523 | 9,747 | 26,420 | 29,649 |
NET INTEREST INCOME | 39,880 | 36,812 | 117,471 | 112,182 |
Provision for loan and lease losses | 5,149 | -502 | 7,648 | 4,852 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 34,731 | 37,314 | 109,823 | 107,330 |
NONINTEREST INCOME: | ' | ' | ' | ' |
Service charges and fees | 4,487 | 3,944 | 12,775 | 11,240 |
Loan servicing income | 3,984 | 3,016 | 11,461 | 7,832 |
Trust fees | 2,918 | 2,667 | 8,764 | 7,940 |
Brokerage and insurance commissions | 1,277 | 908 | 3,315 | 2,757 |
Securities gains, net (includes $1,118 and $6,612 of net security gains reclassified from accumulated other comprehensive income for the three and nine months ended September 30, 2013, respectively) | 1,118 | 5,212 | 6,612 | 14,106 |
Gain (loss) on trading account securities | 263 | -163 | 839 | -117 |
Impairment loss on securities | 0 | 0 | 0 | -981 |
Gains on sale of loans held for sale | 5,251 | 13,750 | 24,246 | 34,941 |
Valuation adjustment on mortgage servicing rights | 0 | -493 | 496 | -674 |
Income on bank owned life insurance | 409 | 382 | 1,129 | 1,131 |
Other noninterest income | 1,011 | 543 | 2,407 | 3,257 |
TOTAL NONINTEREST INCOME | 20,718 | 29,766 | 72,044 | 81,432 |
NONINTEREST EXPENSES: | ' | ' | ' | ' |
Salaries and employee benefits | 28,847 | 27,064 | 88,103 | 76,444 |
Occupancy | 3,387 | 2,596 | 9,796 | 7,612 |
Furniture and equipment | 1,917 | 1,541 | 6,033 | 4,504 |
Professional fees | 4,486 | 4,217 | 12,262 | 10,938 |
FDIC insurance assessments | 745 | 811 | 2,508 | 2,482 |
Advertising | 1,360 | 1,183 | 3,836 | 3,558 |
Intangible assets amortization | 196 | 146 | 594 | 399 |
Net loss on repossessed assets | 1,069 | 3,775 | 4,886 | 7,986 |
Other noninterest expenses | 5,140 | 5,826 | 14,642 | 14,835 |
TOTAL NONINTEREST EXPENSES | 47,147 | 47,159 | 142,660 | 128,758 |
INCOME BEFORE INCOME TAXES | 8,302 | 19,921 | 39,207 | 60,004 |
Income taxes (includes $222 and $1,887 of income tax expense reclassified from accumulated other comprehensive income for the three and nine months ended September 30, 2013, respectively) | 1,492 | 6,338 | 10,289 | 19,642 |
NET INCOME | 6,810 | 13,583 | 28,918 | 40,362 |
Net (income) loss available to noncontrolling interest, net of tax | 0 | 4 | -64 | 23 |
NET INCOME ATTRIBUTABLE TO HEARTLAND | 6,810 | 13,587 | 28,854 | 40,385 |
Preferred dividends and discount | -276 | -949 | -889 | -2,991 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $6,534 | $12,638 | $27,965 | $37,394 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $0.39 | $0.77 | $1.65 | $2.27 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $0.38 | $0.75 | $1.63 | $2.24 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.10 | $0.10 | $0.30 | $0.30 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Interest on other borrowings | $3,623 | $11,122 |
Securities gains, net | 1,118 | 6,612 |
Income taxes | 1,492 | 10,289 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Derivatives [Member] | ' | ' |
Interest on other borrowings | 523 | 1,552 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Securities gains, net | 1,118 | 6,612 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' |
Income taxes | $222 | $1,887 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
NET INCOME | $6,810 | $13,583 | $28,918 | $40,362 |
Securities: | ' | ' | ' | ' |
Net change in unrealized gain (loss) on securities available for sale | -4,857 | 17,908 | -44,394 | 26,873 |
Reclassification adjustment for net gain realized in net income | -1,118 | -5,212 | -6,612 | -13,125 |
Net change in non-credit related other than temporary impairment | 24 | 24 | 72 | -636 |
Income taxes | 2,229 | -4,788 | 19,036 | -4,949 |
Other comprehensive income (loss) on securities available for sale | -3,722 | 7,932 | -31,898 | 8,163 |
Derivatives used in cash flow hedging relationships: | ' | ' | ' | ' |
Unrealized gain (loss) on derivatives | -366 | -770 | 733 | -2,223 |
Reclassification adjustment for net loss on derivatives realized in net income | 523 | 501 | 1,552 | 1,486 |
Income taxes | -54 | 103 | -847 | 275 |
Other comprehensive income (loss) on cash flow hedges | 103 | -166 | 1,438 | -462 |
Other comprehensive income (loss) | -3,619 | 7,766 | -30,460 | 7,701 |
Comprehensive income (loss) | 3,191 | 21,349 | -1,542 | 48,063 |
Less: comprehensive (income) loss attributable to noncontrolling interest | 0 | 4 | -64 | 23 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HEARTLAND | $3,191 | $21,353 | ($1,606) | $48,086 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $28,918 | $40,362 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 12,599 | 10,128 |
Provision for loan and lease losses | 7,648 | 4,852 |
Net amortization of premium on securities | 22,417 | 16,348 |
Securities gains, net | -6,612 | -14,106 |
(Increase) decrease in trading account securities | -839 | 117 |
Impairment loss on securities | 0 | 981 |
Stock based compensation | 1,538 | 1,611 |
Loss on sale of OREO and other repossessed property | 2,440 | 5,862 |
Loans originated for sale | -1,203,402 | -1,103,278 |
Proceeds on sales of loans held for sale | 1,262,487 | 1,092,318 |
Net gains on sales of loans held for sale | -24,246 | -34,941 |
(Increase) decrease in accrued interest receivable | 94 | -2,298 |
Decrease in prepaid expenses | 8,645 | 3,037 |
Decrease in accrued interest payable | -843 | -626 |
Capitalization of mortgage servicing rights | -10,595 | -7,916 |
Valuation adjustment on mortgage servicing rights | -496 | 674 |
Other, net | -3,825 | 3,311 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 95,928 | 16,436 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of time deposits in other financial institutions | -3,605 | 0 |
Proceeds from the sale of securities available for sale | 347,170 | 488,350 |
Proceeds from the maturity of and principal paydowns on securities available for sale | 191,683 | 230,868 |
Proceeds from the maturity of and principal paydowns on securities held to maturity | 1,982 | 1,414 |
Purchase of securities available for sale | -545,831 | -760,281 |
Net increase in loans and leases | -97,741 | -173,818 |
Purchase of bank owned life insurance policies | -2,835 | -4,571 |
Capital expenditures | -8,442 | -13,817 |
Net cash and cash equivalents received in acquisition | 0 | 41,939 |
Proceeds on sale of OREO and other repossessed assets | 14,304 | 23,143 |
NET CASH USED BY INVESTING ACTIVITIES | -103,315 | -166,773 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net increase in demand deposits and savings accounts | 138,415 | 250,433 |
Net decrease in time deposit accounts | -59,077 | -10,903 |
Net decrease in short-term borrowings | -578 | -24,773 |
Proceeds from other borrowings | 160 | 11,103 |
Repayments of other borrowings | -66,647 | -6,387 |
Purchase of noncontrolling interest | -2,798 | 0 |
Purchase of treasury stock | -1,601 | -2,485 |
Proceeds from issuance of common stock | 2,360 | 2,401 |
Excess tax benefits on exercised stock options | 68 | 174 |
Dividends paid | -5,961 | -7,934 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 4,341 | 211,629 |
Net increase (decrease) in cash and cash equivalents | -3,046 | 61,292 |
Cash and cash equivalents at beginning of year | 168,054 | 129,834 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 165,008 | 191,126 |
Supplemental disclosures: | ' | ' |
Cash paid for income/franchise taxes | 4,819 | 8,136 |
Cash paid for interest | 27,263 | 30,275 |
Loans transferred to OREO | 13,318 | 20,192 |
Purchases of securities available for sale, accrued, not paid | $7,540 | $11,435 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (Unaudited) (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | ||||||||
Balance at beginning of period at Dec. 31, 2011 | $352,893 | $81,698 | $16,612 | $43,333 | $198,182 | $12,147 | ($1,754) | $2,675 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | 48,086 | ' | ' | ' | 40,385 | 7,724 | ' | -23 |
Comprehensive income | 48,063 | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred | -2,989 | ' | ' | ' | -2,989 | ' | ' | ' |
Common | -4,945 | ' | ' | ' | -4,945 | ' | ' | ' |
Purchase of shares of common stock | -2,485 | ' | ' | ' | ' | ' | -2,485 | ' |
Issuance of shares of common stock | 2,575 | ' | ' | 686 | ' | ' | 1,889 | ' |
Commitments to issue common stock | 1,611 | ' | ' | 1,611 | ' | ' | ' | ' |
Balance at end of period at Sep. 30, 2012 | 394,746 | 81,698 | 16,612 | 45,630 | 230,633 | 19,871 | -2,350 | 2,652 |
Balance at beginning of period at Dec. 31, 2012 | 404,539 | 81,698 | 16,828 | 50,359 | 236,279 | 16,641 | 0 | 2,734 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | -1,606 | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | -1,542 | ' | ' | ' | 28,854 | -30,460 | ' | 64 |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred | -889 | ' | ' | ' | -889 | ' | ' | ' |
Common | -5,072 | ' | ' | ' | -5,072 | ' | ' | ' |
Purchase of noncontrolling interest | -2,798 | ' | ' | ' | ' | ' | ' | -2,798 |
Purchase of shares of common stock | -1,601 | ' | ' | ' | ' | ' | -1,601 | ' |
Issuance of shares of common stock | 2,428 | ' | 125 | 744 | ' | ' | 1,559 | ' |
Commitments to issue common stock | 1,538 | ' | ' | 1,538 | ' | ' | ' | ' |
Balance at end of period at Sep. 30, 2013 | $396,603 | $81,698 | $16,953 | $52,641 | $259,172 | ($13,819) | ($42) | $0 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Unaudited) (Parentheticals) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash dividends per share preferred stock (in dollars per share) | $10.89 | $36.60 |
Cash dividends per share common stock (in dollars per share) | $0.30 | $0.30 |
Shares of common stock purchased | 59,174 | 113,438 |
Shares of common stock issued | 182,392 | 133,889 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||
Basis of Presentation | ' | |||||||||||||
BASIS OF PRESENTATION | ||||||||||||||
The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2012, included in the Form 10-K of Heartland Financial USA, Inc. ("Heartland") filed with the Securities and Exchange Commission on March 15, 2013. Accordingly, footnote disclosures which would substantially duplicate the disclosure contained in the audited consolidated financial statements have been omitted. | ||||||||||||||
The financial information of Heartland included herein has been prepared in accordance with U.S. generally accepted accounting principles for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments), that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the interim period ended September 30, 2013, are not necessarily indicative of the results expected for the year ending December 31, 2013. | ||||||||||||||
Earnings Per Share | ||||||||||||||
Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. Amounts used in the determination of basic and diluted earnings per share for the three month and nine month periods ended September 30, 2013 and 2012, are shown in the tables below: | ||||||||||||||
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(Dollars and number of shares in thousands, except per share data) | 2013 | 2012 | ||||||||||||
Net income attributable to Heartland | $ | 6,810 | $ | 13,587 | ||||||||||
Preferred dividends and discount | (276 | ) | (949 | ) | ||||||||||
Net income available to common stockholders | $ | 6,534 | $ | 12,638 | ||||||||||
Weighted average common shares outstanding for basic earnings per share | 16,936 | 16,474 | ||||||||||||
Assumed incremental common shares issued for common stock equivalents | 285 | 272 | ||||||||||||
Weighted average common shares for diluted earnings per share | 17,221 | 16,746 | ||||||||||||
Earnings per common share — basic | $ | 0.39 | $ | 0.77 | ||||||||||
Earnings per common share — diluted | $ | 0.38 | $ | 0.75 | ||||||||||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 105 | 446 | ||||||||||||
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(Dollars and number of shares in thousands, except per share data) | 2013 | 2012 | ||||||||||||
Net income attributable to Heartland | $ | 28,854 | $ | 40,385 | ||||||||||
Preferred dividends and discount | (889 | ) | (2,991 | ) | ||||||||||
Net income available to common stockholders | $ | 27,965 | $ | 37,394 | ||||||||||
Weighted average common shares outstanding for basic earnings per share | 16,904 | 16,484 | ||||||||||||
Assumed incremental common shares issued for common stock equivalents | 279 | 246 | ||||||||||||
Weighted average common shares for diluted earnings per share | 17,183 | 16,730 | ||||||||||||
Earnings per common share — basic | $ | 1.65 | $ | 2.27 | ||||||||||
Earnings per common share — diluted | $ | 1.63 | $ | 2.24 | ||||||||||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 105 | 446 | ||||||||||||
Stock-Based Compensation | ||||||||||||||
Heartland may grant, through its Nominating and Compensation Committee (the "Compensation Committee"), non-qualified and incentive stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units and cash incentive awards, under its 2012 Long-Term Incentive Plan (the "Plan"). The Plan, which was approved by stockholders in May 2012 and replaced Heartland's 2005 Long-Term Incentive Plan with respect to grants after such approval, reserved 450,796 shares of common stock at September 30, 2013, for issuance under future awards that may be granted under the Plan to employees and directors of, and service providers to, Heartland or its subsidiaries. | ||||||||||||||
Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, "Compensation-Stock Compensation" requires the measurement of the cost of employee services received in exchange for an award of equity instruments based upon the fair value of the award on the grant date. The cost of the award is based upon its fair value estimated on the date of grant and recognized in the consolidated statements of income over the vesting period of the award. The fair market value of restricted stock and restricted stock units is based on the fair value of the underlying shares of common stock on the date of grant. The fair value of stock options is estimated on the date of grant using the Black-Scholes model. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
The Plan permits the Compensation Committee to grant restricted stock units ("RSUs"). On January 22, 2013, the Compensation Committee granted time-based RSUs with respect to 72,595 shares of common stock and on January 17, 2012, granted time-based RSUs with respect to 94,001 shares of common stock, to selected officers. The time-based RSUs, which represent the right, without payment, to receive shares of Heartland common stock at a specified date in the future based on specific vesting conditions, vest over five years in three equal installments on the third, fourth and fifth anniversaries of the grant date, will be settled in common stock upon vesting, and will not be entitled to dividends until vested. The time-based RSUs terminate upon termination of employment, except that the 2012 RSUs continue to vest after retirement if retirement occurs after the employee has attained age 62 and has provided at least five years of service to Heartland. Although the 2013 time-based RSUs do not vest at retirement, the Compensation Committee may exercise its discretion to provide for vesting upon retirement if the participant signs a non-solicitation and non-compete agreement. | ||||||||||||||
In addition to the time-based RSUs referenced in the preceding paragraph, the Compensation Committee granted performance-based RSUs with respect to 40,990 shares of common stock on January 22, 2013, and performance-based RSUs with respect to 49,801 shares of common stock on January 17, 2012, to Heartland executives and subsidiary presidents. These performance-based RSUs vest based first on performance measures tied to Heartland's earnings and assets on December 31 of the grant year, and then on time-based vesting conditions. For the grants awarded in 2013, the portion of the RSUs earned based on performance vest on December 31, 2015, if the executive remains employed on that date, and for the grants awarded in 2012, the portion of the RSUs earned based on performance vest on December 31, 2014, subject to employment on that date. | ||||||||||||||
Options | ||||||||||||||
Although the Plan provides authority to the Compensation Committee to grant stock options, no options were granted during the first nine months of 2013 and 2012. Prior to 2009, options were typically granted annually with an expiration date ten years after the date of grant. Vesting was generally over a five-year service period with portions of a grant becoming exercisable at three years, four years, and five years after the date of grant. A summary of the status of the stock options as of September 30, 2013 and 2012, and changes during the nine months ended September 30, 2013 and 2012, follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | |||||||||||
Outstanding at January 1 | 377,907 | $ | 22.62 | 570,762 | $ | 21.06 | ||||||||
Granted | — | — | — | — | ||||||||||
Exercised | (68,586 | ) | 19.54 | (112,699 | ) | 17.07 | ||||||||
Forfeited | (1,800 | ) | 26.68 | (12,334 | ) | 23.68 | ||||||||
Outstanding at September 30 | 307,521 | $ | 23.28 | 445,729 | $ | 22 | ||||||||
Options exercisable at September 30 | 307,521 | $ | 23.28 | 399,846 | $ | 22.39 | ||||||||
At September 30, 2013, the vested options totaled 307,521 shares with a weighted average exercise price of $23.28 per share and a weighted average remaining contractual life of 2.99 years. The intrinsic value (the difference between the market price and the aggregate exercise price) for the vested options as of September 30, 2013, was $1.6 million. The intrinsic value for the total of all options exercised during the nine months ended September 30, 2013, was $571,000. | ||||||||||||||
The exercise price of stock options granted is established by the Compensation Committee, but the exercise price for the stock options may not be less than the fair market value of the shares on the date that the option is granted or, if greater, the par value of a share of stock. Each option granted is exercisable in full at any time or from time to time, subject to vesting provisions, as determined by the Compensation Committee and as provided in the option agreement, but such time may not exceed ten years from the grant date. Cash received from options exercised for the nine months ended September 30, 2013, was $1.3 million, with a related tax benefit of $68,000. Cash received from options exercised for the nine months ended September 30, 2012, was $1.9 million, with a related tax benefit of $174,000. | ||||||||||||||
Total compensation costs recorded for stock options and RSUs were $1.5 million and $1.6 million for the nine months ended September 30, 2013, and 2012, respectively. As of September 30, 2013, there were $3.3 million of total unrecognized compensation costs related to the 2005 and 2012 Long-Term Incentive Plans for stock options and RSUs which are expected to be recognized through 2016. | ||||||||||||||
Subsequent Events | ||||||||||||||
On October 18, 2013, Heartland acquired Morrill Bancshares, Inc. See Note 2, “Acquisitions,” for additional information regarding the acquisition. | ||||||||||||||
Heartland had no other subsequent events through the filing date of this quarterly report on Form 10-Q with the SEC. | ||||||||||||||
Effect of New Financial Accounting Standards | ||||||||||||||
In July 2012, the FASB issued ASU No. 2012-02, "Testing Indefinite-Lived Intangible Assets for Impairment," which permits an entity to make a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. Prior to this ASU, entities were required to quantitatively test indefinite-lived intangible assets for impairment at least annually and more frequently if indicators of impairment exist. Under the new standard, if an entity concludes, based on an evaluation of all relevant qualitative factors, that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, it is not required to perform the quantitative impairment test for that asset. Heartland adopted this standard on January 1, 2013, and the adoption did not have an impact on the results of operations, financial position and liquidity. | ||||||||||||||
In September 2012, the FASB issued ASU No. 2012-06, "Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution," to address diversity in practice about how to subsequently measure an indemnification asset for a government-assisted acquisition that includes a loss-sharing agreement. This guidance requires a reporting entity to account for a change in the subsequent measurement of the indemnification asset on the same basis as the changes in the asset subject to indemnification. Heartland adopted this standard on January 1, 2013, and the adoption did not have a material impact on the accounting for its loss share receivable from the FDIC under its various loss share agreements. | ||||||||||||||
In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," to address further disclosure of reclassification amounts out of other comprehensive income. The guidance requires that a reporting entity present, either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and income statement line items affected by the reclassification. Heartland adopted this standard on January 1, 2013, and the adoption did not have an impact on the results of operations, financial position and liquidity. | ||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," to eliminate the diversity in practice and to increase the comparability of financial statements among companies. The guidance requires that a reporting entity generally must show an unrecognized tax benefit, or a portion of an unrecognized tax benefit, for a net operating loss, or NOL, carryforward, similar tax loss or tax credit carryforward as a reduction of a deferred tax asset. However, the entity should present the unrecognized tax benefit as a liability and not as a reduction of a deferred tax asset if the carryforward or tax loss is not available on the financial statement date to settle any additional income tax liability that would result from the disallowance of the tax position under the applicable tax law, or the applicable tax law does not require the company to use, and the company does not intend to use, the carryforward or tax loss to settle additional income taxes resulting from the disallowance of the tax position. The guidance does not require any new recurring disclosures because it does not affect the recognition or measurement of uncertain tax positions. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption and retrospective application are both permitted. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
ACQUISITIONS | |
On June 12, 2013, Heartland entered into a merger agreement with Morrill Bancshares, Inc., the holding company for The Morrill & Janes Bank and Trust Co. ("Bank"), based in Merriam, Kansas. As of September 30, 2013, the Bank had total assets of approximately $790 million, including $385 million of loans. The transaction closed on October 18, 2013. After the merger, The Morrill & Janes Bank and Trust Co. became Heartland's tenth independent, state-chartered, bank subsidiary and continues to operate under its current name and management team. The aggregate purchase price, which was based on the tangible book value of Morrill Bancshares, Inc., was approximately $55.4 million, $16.6 million or 30% of which was paid in cash, and $38.8 million or 70% of which was paid by delivery of 1,402,431 shares of Heartland common stock. |
Securities
Securities | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||
SECURITIES | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2013, and December 31, 2012, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 7,836 | $ | 192 | $ | — | $ | 8,028 | ||||||||||||||||
Mortgage-backed securities | 942,819 | 9,778 | (19,450 | ) | 933,147 | |||||||||||||||||||
Obligations of states and political subdivisions | 436,914 | 8,583 | (16,662 | ) | 428,835 | |||||||||||||||||||
Total debt securities | 1,387,569 | 18,553 | (36,112 | ) | 1,370,010 | |||||||||||||||||||
Equity securities | 21,537 | 63 | — | 21,600 | ||||||||||||||||||||
Total | $ | 1,409,106 | $ | 18,616 | $ | (36,112 | ) | $ | 1,391,610 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 21,002 | $ | 443 | $ | (1 | ) | $ | 21,444 | |||||||||||||||
Mortgage-backed securities | 1,027,234 | 19,002 | (10,035 | ) | 1,036,201 | |||||||||||||||||||
Obligations of states and political subdivisions | 403,077 | 23,560 | (192 | ) | 426,445 | |||||||||||||||||||
Total debt securities | 1,451,313 | 43,005 | (10,228 | ) | 1,484,090 | |||||||||||||||||||
Equity securities | 21,252 | 733 | — | 21,985 | ||||||||||||||||||||
Total | $ | 1,472,565 | $ | 43,738 | $ | (10,228 | ) | $ | 1,506,075 | |||||||||||||||
At both September 30, 2013, and December 31, 2012, the amortized cost of the available for sale securities is net of $184,000 of credit related other-than-temporary impairment ("OTTI"). | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2013, and December 31, 2012, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 6,045 | $ | 290 | $ | (238 | ) | $ | 6,097 | |||||||||||||||
Obligations of states and political subdivisions | 47,796 | — | — | 47,796 | ||||||||||||||||||||
Total | $ | 53,841 | $ | 290 | $ | (238 | ) | $ | 53,893 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 7,040 | $ | 492 | $ | (12 | ) | $ | 7,520 | |||||||||||||||
Obligations of states and political subdivisions | 48,462 | — | — | 48,462 | ||||||||||||||||||||
Total | $ | 55,502 | $ | 492 | $ | (12 | ) | $ | 55,982 | |||||||||||||||
At September 30, 2013, the amortized cost of the held to maturity securities is net of $797,000 of credit related OTTI and $540,000 of non-credit related OTTI. At December 31, 2012, $797,000 of credit related OTTI and $612,000 of non-credit related OTTI was recorded. | ||||||||||||||||||||||||
Approximately 84% of Heartland's mortgage-backed securities are issuances of government-sponsored enterprises. | ||||||||||||||||||||||||
The amortized cost and estimated fair value of debt securities available for sale at September 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 7,737 | $ | 7,808 | ||||||||||||||||||||
Due in 1 to 5 years | 38,189 | 39,952 | ||||||||||||||||||||||
Due in 5 to 10 years | 47,239 | 48,207 | ||||||||||||||||||||||
Due after 10 years | 351,585 | 340,896 | ||||||||||||||||||||||
Total debt securities | 444,750 | 436,863 | ||||||||||||||||||||||
Mortgage-backed securities | 942,819 | 933,147 | ||||||||||||||||||||||
Equity securities | 21,537 | 21,600 | ||||||||||||||||||||||
Total investment securities | $ | 1,409,106 | $ | 1,391,610 | ||||||||||||||||||||
The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | — | $ | — | ||||||||||||||||||||
Due in 1 to 5 years | 1,281 | 1,281 | ||||||||||||||||||||||
Due in 5 to 10 years | 10,200 | 10,200 | ||||||||||||||||||||||
Due after 10 years | 36,315 | 36,315 | ||||||||||||||||||||||
Total debt securities | 47,796 | 47,796 | ||||||||||||||||||||||
Mortgage-backed securities | 6,045 | 6,097 | ||||||||||||||||||||||
Total investment securities | $ | 53,841 | $ | 53,893 | ||||||||||||||||||||
Gross gains and losses realized related to the sales of securities for the three and nine month periods ended September 30, are summarized as follows, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Proceeds from sales | $ | 130,031 | $ | 147,199 | 347,170 | $ | 488,350 | |||||||||||||||||
Gross security gains | 1,420 | 5,212 | 7,703 | 14,592 | ||||||||||||||||||||
Gross security losses | 302 | — | 1,091 | 486 | ||||||||||||||||||||
The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 2013, and December 31, 2012. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was September 30, 2012, and December 31, 2011, respectively. Securities for which Heartland has taken credit-related OTTI write-downs are categorized as being "less than 12 months" or "12 months or longer" in a continuous loss position based on the point in time that the fair value declined to below the cost basis and not the period of time since the credit-related OTTI write-down. | ||||||||||||||||||||||||
Securities available for sale | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Mortgage-backed securities | 679,247 | (18,529 | ) | 30,886 | (921 | ) | 710,133 | (19,450 | ) | |||||||||||||||
Obligations of states and political subdivisions | 255,451 | (16,662 | ) | — | — | 255,451 | (16,662 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 934,698 | $ | (35,191 | ) | $ | 30,886 | $ | (921 | ) | $ | 965,584 | $ | (36,112 | ) | |||||||||
December 31, 2012 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 1,517 | $ | (1 | ) | $ | — | $ | — | $ | 1,517 | $ | (1 | ) | ||||||||||
Mortgage-backed securities | 332,842 | (9,121 | ) | 24,489 | (914 | ) | 357,331 | (10,035 | ) | |||||||||||||||
Obligations of states and political subdivisions | 22,503 | (192 | ) | — | — | 22,503 | (192 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 356,862 | $ | (9,314 | ) | $ | 24,489 | $ | (914 | ) | $ | 381,351 | $ | (10,228 | ) | |||||||||
Securities held to maturity | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 3,082 | $ | (238 | ) | $ | 3,082 | $ | (238 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | — | $ | — | $ | 3,082 | $ | (238 | ) | $ | 3,082 | $ | (238 | ) | ||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 3,296 | $ | (12 | ) | $ | 3,296 | $ | (12 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | — | $ | — | $ | 3,296 | $ | (12 | ) | $ | 3,296 | $ | (12 | ) | ||||||||||
Heartland reviews the investment securities portfolio on a quarterly basis to monitor its exposure to OTTI. A determination as to whether a security's decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors Heartland may consider in the OTTI analysis include the length of time the security has been in an unrealized loss position, changes in security ratings, financial condition of the issuer, as well as security and industry specific economic conditions. In addition, with regard to debt securities, Heartland may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds, and the value of any underlying collateral. For certain debt securities in unrealized loss positions, Heartland prepares cash flow analyses to compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. During the first quarter of 2012, Heartland experienced deterioration in the credit support on three private label mortgage-backed securities which resulted in a credit-related OTTI loss. The underlying collateral on these securities experienced an increased level of defaults and a slowing of voluntary prepayments causing the present value of the forward expected cash flows, using prepayment and default vectors, to be below the amortized cost basis of the securities. Based on Heartland's evaluation, a $981,000 OTTI on three private label mortgage-backed securities attributable to credit-related losses was recorded in March 2012. The other-than-temporary credit-related losses were $797,000 in the held to maturity category and $184,000 in the available for sale category. | ||||||||||||||||||||||||
The remaining unrealized losses on Heartland's mortgage-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities and not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, these investments are not considered other-than-temporarily impaired. | ||||||||||||||||||||||||
Unrealized losses on Heartland's obligations of states and political subdivisions are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the credit quality and financial stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or what management believes to be temporary market conditions and not underlying credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, these investments are not considered other-than-temporarily impaired. | ||||||||||||||||||||||||
There were no gross realized gains or losses on the sale of available for sale securities with OTTI write-downs for the periods ended September 30, 2013, or December 31, 2012. | ||||||||||||||||||||||||
The following table shows the detail of total OTTI write-downs included in earnings, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||
Mortgage backed securities | $ | — | $ | — | $ | — | $ | 184 | ||||||||||||||||
Held to maturity debt securities: | ||||||||||||||||||||||||
Mortgage backed securities | — | — | — | 797 | ||||||||||||||||||||
Total debt security OTTI write-downs included in earnings | $ | — | $ | — | $ | — | $ | 981 | ||||||||||||||||
The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income ("AOCI") for the same securities, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Recorded as part of gross realized losses: | ||||||||||||||||||||||||
Credit related OTTI | $ | — | $ | — | $ | — | $ | 981 | ||||||||||||||||
Intent to sell OTTI | — | — | — | — | ||||||||||||||||||||
Total recorded as part of gross realized losses | — | — | — | 981 | ||||||||||||||||||||
Recorded directly to AOCI for non-credit related impairment: | ||||||||||||||||||||||||
Residential mortgage backed securities | — | — | — | 683 | ||||||||||||||||||||
Accretion of non-credit related impairment | (24 | ) | (24 | ) | (72 | ) | (47 | ) | ||||||||||||||||
Total changes to AOCI for non-credit related impairment | (24 | ) | (24 | ) | (72 | ) | 636 | |||||||||||||||||
Total OTTI losses (accretion) recorded on debt securities, net | $ | (24 | ) | $ | (24 | ) | $ | (72 | ) | $ | 1,617 | |||||||||||||
Heartland has not experienced any OTTI writedowns since the initial impairment charge in the first quarter of 2012. | ||||||||||||||||||||||||
Loans_and_Leases
Loans and Leases | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Loans and Leases | ' | |||||||||||||||||||||||||||
LOANS AND LEASES | ||||||||||||||||||||||||||||
Loans and leases as of September 30, 2013, and December 31, 2012, were as follows, in thousands: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Loans and leases receivable held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 755,658 | $ | 712,308 | ||||||||||||||||||||||||
Commercial real estate | 1,287,337 | 1,289,184 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 324,339 | 328,311 | ||||||||||||||||||||||||||
Residential real estate | 269,501 | 249,689 | ||||||||||||||||||||||||||
Consumer | 268,112 | 245,678 | ||||||||||||||||||||||||||
Gross loans and leases receivable held to maturity | 2,904,947 | 2,825,170 | ||||||||||||||||||||||||||
Unearned discount | (232 | ) | (676 | ) | ||||||||||||||||||||||||
Deferred loan fees | (3,009 | ) | (2,945 | ) | ||||||||||||||||||||||||
Total net loans and leases receivable held to maturity | 2,901,706 | 2,821,549 | ||||||||||||||||||||||||||
Loans covered under loss share agreements: | ||||||||||||||||||||||||||||
Commercial and commercial real estate | 2,402 | 3,074 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 446 | 748 | ||||||||||||||||||||||||||
Residential real estate | 2,433 | 2,645 | ||||||||||||||||||||||||||
Consumer | 595 | 786 | ||||||||||||||||||||||||||
Total loans covered under loss share agreements | 5,876 | 7,253 | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (41,311 | ) | (38,715 | ) | ||||||||||||||||||||||||
Loans and leases receivable, net | $ | 2,866,271 | $ | 2,790,087 | ||||||||||||||||||||||||
Heartland has certain lending policies and procedures in place that are designed to provide for an acceptable level of credit risk. The board of directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management and the board with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. Diversification in the loan portfolio is also a means of managing risk associated with fluctuations in economic conditions. | ||||||||||||||||||||||||||||
The commercial and commercial real estate loan portfolio includes a wide range of business loans, including lines of credit for working capital and operational purposes and term loans for the acquisition of equipment and real estate. Although most loans are made on a secured basis, loans may be made on an unsecured basis where warranted by the overall financial condition of the borrower. Terms of commercial business loans generally range from one to five years. Commercial loans and leases are primarily made based on the identified cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The collateral that Heartland requires for most of these loans and leases is based upon a discount from the market value of the collateral. The primary repayment risks of commercial loans and leases are that the cash flow of the borrowers may be unpredictable, and the collateral securing these loans may fluctuate in value. Heartland seeks to minimize these risks in a variety of ways. The underwriting analysis includes credit verification, analysis of global cash flows, appraisals and a review of the financial condition of the borrower. Personal guarantees are frequently required as a tertiary form of repayment. In addition, when underwriting loans for commercial real estate, careful consideration is given to the property's operating history, future operating projections, current and projected occupancy, location and physical condition. Heartland also utilizes government guaranteed lending through the U.S. Small Business Administration and the USDA Rural Development Business and Industry Program to assist customers with longer-term funding and to reduce risk. | ||||||||||||||||||||||||||||
Agricultural loans, many of which are secured by crops, machinery and real estate, are provided to finance capital improvements and farm operations as well as acquisitions of livestock and machinery. Agricultural loans present unique credit risks relating to adverse weather conditions, loss of livestock due to disease or other factors, declines in market prices for agricultural products and the impact of government regulations. The ultimate repayment of agricultural loans is dependent upon the profitable operation or management of the agricultural entity. In underwriting agricultural loans, lending personnel work closely with their customers to review budgets and cash flow projections for the ensuing crop year. These budgets and cash flow projections are monitored closely during the year and reviewed with the customers at least annually. Lending personnel also work closely with governmental agencies, including the Farm Service Agency, to help agricultural customers obtain credit enhancement products such as loan guarantees or interest assistance. | ||||||||||||||||||||||||||||
Heartland originates first-lien, adjustable-rate and fixed-rate, one-to-four-family residential real estate loans for the construction, purchase or refinancing of a single family residential property. These loans are principally collateralized by owner-occupied properties and are amortized over 10 to 30 years. Heartland typically sells longer-term, low-rate, residential mortgage loans in the secondary market with servicing rights retained. This practice allows Heartland to better manage interest rate risk and liquidity risk. The Heartland bank subsidiaries participate in lending programs sponsored by U.S. government agencies such as Veterans Administration and Federal Home Administration when justified by market conditions. | ||||||||||||||||||||||||||||
Consumer lending includes motor vehicle, home improvement, home equity and small personal credit lines. Consumer loans typically have shorter terms, lower balances, higher yields and higher risks of default than one-to-four-family residential mortgage loans. Consumer loan collections are dependent on the borrower's continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate. Heartland's consumer finance subsidiary, Citizens Finance Co., typically lends to borrowers with past credit problems or limited credit histories, which comprise approximately 25% of Heartland's total consumer loan portfolio. | ||||||||||||||||||||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Heartland’s policy is to discontinue the accrual of interest income on any loan or lease when, in the opinion of management, there is a reasonable doubt as to the timely collection of the interest and principal, normally when a loan or lease is 90 days past due. When interest accruals are deemed uncollectible, interest credited to income in the current year is reversed and interest accrued in prior years is charged to the allowance for loan and lease losses. Nonaccrual loans and leases are returned to an accrual status when, in the opinion of management, the financial position of the borrower indicates that there is no longer any reasonable doubt as to the timely payment of interest and principal. | ||||||||||||||||||||||||||||
Under Heartland’s credit practices, a loan is impaired when, based on current information and events, it is probable that Heartland will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except where more practical, at the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. | ||||||||||||||||||||||||||||
The following table shows the balance in the allowance for loan and lease losses at September 30, 2013, and December 31, 2012, and the related loan balances, disaggregated on the basis of impairment methodology, in thousands. Loans evaluated under ASC 310-10-35 include loans on nonaccrual status and troubled debt restructurings, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics. All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no significant changes to the accounting for the allowance for loan and lease losses policy during 2013. | ||||||||||||||||||||||||||||
Allowance For Loan and Lease Losses | Gross Loans and Leases Receivable Held to Maturity | |||||||||||||||||||||||||||
Ending Balance | Ending Balance Under ASC | Total | Ending Balance Evaluated for Impairment Under ASC | Ending Balance Evaluated for Impairment Under ASC | Total | |||||||||||||||||||||||
Under ASC | 450-20 | 310-10-35 | 450-20 | |||||||||||||||||||||||||
310-10-35 | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 3,178 | $ | 9,918 | $ | 13,096 | $ | 21,696 | $ | 733,962 | $ | 755,658 | ||||||||||||||||
Commercial real estate | 838 | 13,205 | 14,043 | 28,018 | 1,259,319 | 1,287,337 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 619 | 2,197 | 2,816 | 19,249 | 305,090 | 324,339 | ||||||||||||||||||||||
Residential real estate | 678 | 2,859 | 3,537 | 6,986 | 262,515 | 269,501 | ||||||||||||||||||||||
Consumer | 1,828 | 5,991 | 7,819 | 5,185 | 262,927 | 268,112 | ||||||||||||||||||||||
Total | $ | 7,141 | $ | 34,170 | $ | 41,311 | $ | 81,134 | $ | 2,823,813 | $ | 2,904,947 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 1,350 | $ | 10,038 | $ | 11,388 | $ | 9,031 | $ | 703,277 | $ | 712,308 | ||||||||||||||||
Commercial real estate | 1,112 | 13,361 | 14,473 | 45,583 | 1,243,601 | 1,289,184 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 109 | 2,029 | 2,138 | 16,128 | 312,183 | 328,311 | ||||||||||||||||||||||
Residential real estate | 783 | 2,760 | 3,543 | 7,443 | 242,246 | 249,689 | ||||||||||||||||||||||
Consumer | 1,270 | 5,903 | 7,173 | 5,391 | 240,287 | 245,678 | ||||||||||||||||||||||
Total | $ | 4,624 | $ | 34,091 | $ | 38,715 | $ | 83,576 | $ | 2,741,594 | $ | 2,825,170 | ||||||||||||||||
The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans not covered under loss share agreements at September 30, 2013, and December 31, 2012, in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 28,339 | $ | 38,675 | ||||||||||||||||||||||||
Nonaccrual troubled debt restructured loans | 18,749 | 4,481 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 47,088 | $ | 43,156 | ||||||||||||||||||||||||
Accruing loans past due 90 days or more | — | — | ||||||||||||||||||||||||||
Performing troubled debt restructured loans | $ | 19,371 | $ | 21,121 | ||||||||||||||||||||||||
The following tables provide information on troubled debt restructured loans that were modified during the three months and nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | |||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Commercial | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial and commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Residential real estate | 1 | 65 | 65 | 1 | 87 | 87 | ||||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 1 | $ | 65 | $ | 65 | 1 | $ | 87 | $ | 87 | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | |||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Commercial | 3 | $ | 17,873 | $ | 17,873 | — | $ | — | $ | — | ||||||||||||||||||
Commercial real estate | — | — | — | 2 | 1,396 | 1,396 | ||||||||||||||||||||||
Total commercial and commercial real estate | 3 | 17,873 | 17,873 | 2 | 1,396 | 1,396 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 3 | 2,576 | 2,576 | 2 | 276 | 276 | ||||||||||||||||||||||
Residential real estate | 4 | 762 | 762 | 1 | 87 | 87 | ||||||||||||||||||||||
Consumer | 1 | 166 | 166 | 1 | 1,152 | 1,152 | ||||||||||||||||||||||
Total | 11 | $ | 21,377 | $ | 21,377 | 6 | $ | 2,911 | $ | 2,911 | ||||||||||||||||||
The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. Since the modifications on these loans have been only interest rate concessions and term extensions, not principal reductions, the pre-modification and post-modification recorded investment amounts are the same. | ||||||||||||||||||||||||||||
The following tables provide information on troubled debt restructured loans for which there was a payment default during the three months and nine months ended September 30, 2013, and September 30, 2012, in thousands, that had been modified during the twelve-month period prior to the default: | ||||||||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||
Loans | Investment | Loans | Investment | |||||||||||||||||||||||||
Commercial | 1 | $ | 13,000 | — | $ | — | ||||||||||||||||||||||
Commercial real estate | — | — | 1 | 1,380 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 1 | 13,000 | 1 | 1,380 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | — | — | 2 | 59 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 13,000 | 3 | $ | 1,439 | ||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||
Loans | Investment | Loans | Investment | |||||||||||||||||||||||||
Commercial | 2 | $ | 17,670 | — | $ | — | ||||||||||||||||||||||
Commercial real estate | — | — | 1 | 1,380 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 2 | 17,670 | 1 | 1,380 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | 2 | 167 | 2 | 59 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 4 | $ | 17,837 | 3 | $ | 1,439 | ||||||||||||||||||||||
Heartland's internal rating system is a series of grades reflecting management's risk assessment, based on its analysis of the borrower's financial condition. The "pass" category consists of all loans that are not in the "nonpass" category, categorized into a range of loan grades that reflect increasing, though still acceptable, risk. Movement of risk through the various grade levels in the pass category is monitored for early identification of credit deterioration. The "nonpass" category consists of special mention, substandard, doubtful and loss loans. The "special mention" rating is attached to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. These credits are closely monitored for improvement or deterioration. The "substandard" rating is assigned to loans that are inadequately protected by the current sound net worth and paying capacity of the borrower and may be further at risk due to deterioration in the value of collateral pledged. Well-defined weaknesses jeopardize liquidation of the debt. These loans are still considered collectible, however, a distinct possibility exists that Heartland will sustain some loss if deficiencies are not corrected. Substandard loans may exhibit some or all of the following weaknesses: deteriorating trends, lack of earnings, inadequate debt service capacity, excessive debt and/or lack of liquidity. The "doubtful" rating is assigned to loans where identified weaknesses make collection or liquidation in full, on the basis of existing facts, conditions and values, highly questionable and improbable. These borrowers are usually in default, lack liquidity and capital, as well as, resources necessary to remain an operating entity. Specific pending events, such as capital injections, liquidations or perfection of liens on additional collateral, may strengthen the credit, thus deferring classification of the loan as loss until exact status can be determined. The "loss" rating is assigned to loans considered uncollectible. As of September 30, 2013, Heartland had one loan classified as doubtful and no loans classified as loss. Loans are placed on "nonaccrual" when management does not expect to collect payments of principal and interest in full or when principal or interest has been in default for a period of 90 days or more, unless the loan is both well secured and in the process of collection. | ||||||||||||||||||||||||||||
The following table presents loans and leases not covered by loss share agreements by credit quality indicator at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Pass | Nonpass | Total | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 695,073 | $ | 60,585 | $ | 755,658 | ||||||||||||||||||||||
Commercial real estate | 1,159,006 | 128,331 | 1,287,337 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 1,854,079 | 188,916 | 2,042,995 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 280,501 | 43,838 | 324,339 | |||||||||||||||||||||||||
Residential real estate | 253,502 | 15,999 | 269,501 | |||||||||||||||||||||||||
Consumer | 257,682 | 10,430 | 268,112 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 2,645,764 | $ | 259,183 | $ | 2,904,947 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 661,118 | $ | 51,190 | $ | 712,308 | ||||||||||||||||||||||
Commercial real estate | 1,134,784 | 154,400 | 1,289,184 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 1,795,902 | 205,590 | 2,001,492 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 286,264 | 42,047 | 328,311 | |||||||||||||||||||||||||
Residential real estate | 227,925 | 21,764 | 249,689 | |||||||||||||||||||||||||
Consumer | 235,232 | 10,446 | 245,678 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 2,545,323 | $ | 279,847 | $ | 2,825,170 | ||||||||||||||||||||||
The nonpass category in the table above is comprised of approximately 50% special mention, 45% substandard, and 5% doubtful as of September 30, 2013. The percent of nonpass loans on nonaccrual status as of September 30, 2013 was 18%. As of December 31, 2012, the nonpass category in the table above was comprised of approximately 50% special mention and 50% substandard. The percent of nonpass loans on nonaccrual status as of December 31, 2012, was 15%. The doubtful loan at September 30, 2013, is a $13.0 million secured loan to a bank holding company that was placed on nonaccrual at September 30, 2013, and has a specific reserve of $2.2 million. Loans delinquent 30 to 89 days as a percent of total loans were 0.69% at September 30, 2013. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. All impaired loans are reviewed at least annually. | ||||||||||||||||||||||||||||
The following table sets forth information regarding Heartland's accruing and nonaccrual loans and leases not covered by loss share agreements at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Accruing Loans and Leases | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Current | Nonaccrual | Total Loans and Leases | ||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | |||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 3,537 | $ | 76 | $ | — | $ | 3,613 | $ | 733,222 | $ | 18,823 | $ | 755,658 | ||||||||||||||
Commercial real estate | 2,611 | 495 | — | 3,106 | 1,270,831 | 13,400 | 1,287,337 | |||||||||||||||||||||
Total commercial and commercial real estate | 6,148 | 571 | — | 6,719 | 2,004,053 | 32,223 | 2,042,995 | |||||||||||||||||||||
Agricultural and agricultural real estate | 9,021 | 132 | — | 9,153 | 309,128 | 6,058 | 324,339 | |||||||||||||||||||||
Residential real estate | 236 | — | — | 236 | 263,620 | 5,645 | 269,501 | |||||||||||||||||||||
Consumer | 3,282 | 797 | — | 4,079 | 260,871 | 3,162 | 268,112 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 18,687 | $ | 1,500 | $ | — | $ | 20,187 | $ | 2,837,672 | $ | 47,088 | $ | 2,904,947 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 1,143 | $ | 525 | $ | — | $ | 1,668 | $ | 708,459 | $ | 2,181 | $ | 712,308 | ||||||||||||||
Commercial real estate | 1,631 | 494 | — | 2,125 | 1,259,112 | 27,947 | 1,289,184 | |||||||||||||||||||||
Total commercial and commercial real estate | 2,774 | 1,019 | — | 3,793 | 1,967,571 | 30,128 | 2,001,492 | |||||||||||||||||||||
Agricultural and agricultural real estate | 687 | — | — | 687 | 324,545 | 3,079 | 328,311 | |||||||||||||||||||||
Residential real estate | 1,278 | 234 | — | 1,512 | 241,860 | 6,317 | 249,689 | |||||||||||||||||||||
Consumer | 2,434 | 803 | — | 3,237 | 238,809 | 3,632 | 245,678 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 7,173 | $ | 2,056 | $ | — | $ | 9,229 | $ | 2,772,785 | $ | 43,156 | $ | 2,825,170 | ||||||||||||||
The majority of Heartland's impaired loans are those that are nonaccrual, are past due 90 days or more and still accruing or have had their terms restructured in a troubled debt restructuring. The following tables present, for impaired loans not covered by loss share agreements and by category of loan, the unpaid contractual balance at September 30, 2013, and December 31, 2012; the outstanding loan balance recorded on the consolidated balance sheets at September 30, 2013, and December 31, 2012; any related allowance recorded for those loans as of September 30, 2013, and December 31, 2012; the average outstanding loan balance recorded on the consolidated balance sheets during the three months and nine months ended September 30, 2013, and year ended December 31, 2012; and the interest income recognized on the impaired loans during the three months and nine months ended September 30, 2013, and year ended December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Unpaid | Loan | Related | Quarter-to- | Quarter-to- | Year-to- | Year-to- | ||||||||||||||||||||||
Contractual | Balance | Allowance | Date | Date | Date | Date | ||||||||||||||||||||||
Balance | Recorded | Avg. Loan | Interest | Avg. | Interest | |||||||||||||||||||||||
Balance | Income | Loan | Income | |||||||||||||||||||||||||
Recognized | Balance | Recognized | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 15,026 | $ | 15,026 | $ | 3,178 | $ | 5,892 | $ | 21 | $ | 3,560 | $ | 51 | ||||||||||||||
Commercial real estate | 7,223 | 7,027 | 838 | 8,494 | 81 | 7,625 | 250 | |||||||||||||||||||||
Total commercial and commercial real estate | 22,249 | 22,053 | 4,016 | 14,386 | 102 | 11,185 | 301 | |||||||||||||||||||||
Agricultural and agricultural real estate | 7,363 | 7,363 | 619 | 12,965 | 22 | 6,885 | 65 | |||||||||||||||||||||
Residential real estate | 2,746 | 2,736 | 678 | 3,187 | 3 | 3,330 | 13 | |||||||||||||||||||||
Consumer | 3,706 | 3,706 | 1,828 | 3,591 | 32 | 3,483 | 82 | |||||||||||||||||||||
Total loans held to maturity | $ | 36,064 | $ | 35,858 | $ | 7,141 | $ | 34,129 | $ | 159 | $ | 24,883 | $ | 461 | ||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,512 | $ | 6,670 | $ | — | $ | 14,980 | $ | 44 | $ | 10,242 | $ | 56 | ||||||||||||||
Commercial real estate | 26,390 | 20,991 | — | 19,507 | 171 | 26,630 | 284 | |||||||||||||||||||||
Total commercial and commercial real estate | 33,902 | 27,661 | — | 34,487 | 215 | 36,872 | 340 | |||||||||||||||||||||
Agricultural and agricultural real estate | 11,886 | 11,886 | — | 6,691 | 125 | 10,828 | 370 | |||||||||||||||||||||
Residential real estate | 4,782 | 4,250 | — | 4,463 | 23 | 4,102 | 62 | |||||||||||||||||||||
Consumer | 1,494 | 1,479 | — | 1,501 | 9 | 1,505 | 24 | |||||||||||||||||||||
Total loans held to maturity | $ | 52,064 | $ | 45,276 | $ | — | $ | 47,142 | $ | 372 | $ | 53,307 | $ | 796 | ||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 22,538 | $ | 21,696 | $ | 3,178 | $ | 20,872 | $ | 65 | $ | 13,802 | $ | 107 | ||||||||||||||
Commercial real estate | 33,613 | 28,018 | 838 | 28,001 | 252 | 34,255 | 534 | |||||||||||||||||||||
Total commercial and commercial real estate | 56,151 | 49,714 | 4,016 | 48,873 | 317 | 48,057 | 641 | |||||||||||||||||||||
Agricultural and agricultural real estate | 19,249 | 19,249 | 619 | 19,656 | 147 | 17,713 | 435 | |||||||||||||||||||||
Residential real estate | 7,528 | 6,986 | 678 | 7,650 | 26 | 7,432 | 75 | |||||||||||||||||||||
Consumer | 5,200 | 5,185 | 1,828 | 5,092 | 41 | 4,988 | 106 | |||||||||||||||||||||
Total impaired loans held to maturity | $ | 88,128 | $ | 81,134 | $ | 7,141 | $ | 81,271 | $ | 531 | $ | 78,190 | $ | 1,257 | ||||||||||||||
Unpaid | Loan | Related | Year-to- | Year-to- | ||||||||||||||||||||||||
Contractual | Balance | Allowance | Date | Date | ||||||||||||||||||||||||
Balance | Recorded | Avg. | Interest | |||||||||||||||||||||||||
Loan | Income | |||||||||||||||||||||||||||
Balance | Recognized | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 2,904 | $ | 2,904 | $ | 1,350 | $ | 5,082 | $ | 88 | ||||||||||||||||||
Commercial real estate | 6,403 | 6,384 | 1,112 | 12,671 | 813 | |||||||||||||||||||||||
Total commercial and commercial real estate | 9,307 | 9,288 | 2,462 | 17,753 | 901 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 1,493 | 1,493 | 109 | 379 | 83 | |||||||||||||||||||||||
Residential real estate | 3,197 | 3,170 | 783 | 2,737 | 89 | |||||||||||||||||||||||
Consumer | 3,876 | 3,836 | 1,270 | 3,781 | 204 | |||||||||||||||||||||||
Total loans held to maturity | $ | 17,873 | $ | 17,787 | $ | 4,624 | $ | 24,650 | $ | 1,277 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 6,596 | $ | 6,127 | $ | — | $ | 3,813 | $ | 186 | ||||||||||||||||||
Commercial real estate | 48,967 | 39,199 | — | 41,814 | 689 | |||||||||||||||||||||||
Total commercial and commercial real estate | 55,563 | 45,326 | — | 45,627 | 875 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 14,654 | 14,635 | — | 13,728 | 539 | |||||||||||||||||||||||
Residential real estate | 4,741 | 4,273 | — | 3,861 | 65 | |||||||||||||||||||||||
Consumer | 1,708 | 1,555 | — | 1,630 | 18 | |||||||||||||||||||||||
Total loans held to maturity | $ | 76,666 | $ | 65,789 | $ | — | $ | 64,846 | $ | 1,497 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 9,500 | $ | 9,031 | $ | 1,350 | $ | 8,895 | $ | 274 | ||||||||||||||||||
Commercial real estate | 55,370 | 45,583 | 1,112 | 54,485 | 1,502 | |||||||||||||||||||||||
Total commercial and commercial real estate | 64,870 | 54,614 | 2,462 | 63,380 | 1,776 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 16,147 | 16,128 | 109 | 14,107 | 622 | |||||||||||||||||||||||
Residential real estate | 7,938 | 7,443 | 783 | 6,598 | 154 | |||||||||||||||||||||||
Consumer | 5,584 | 5,391 | 1,270 | 5,411 | 222 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 94,539 | $ | 83,576 | $ | 4,624 | $ | 89,496 | $ | 2,774 | ||||||||||||||||||
On July 2, 2009, Heartland acquired all deposits of The Elizabeth State Bank in Elizabeth, Illinois through its subsidiary Galena State Bank & Trust Co. based in Galena, Illinois, in a whole bank loss sharing transaction facilitated by the FDIC. As of July 2, 2009, The Elizabeth State Bank had loans of $42.7 million. The estimated fair value of the loans acquired was $37.8 million. | ||||||||||||||||||||||||||||
The acquired loans and other real estate owned are covered by two loss share agreements between the FDIC and Galena State Bank & Trust Co., which affords Galena State Bank & Trust Co. significant loss protection. Under the loss share agreements, the FDIC covers 80% of the covered loan and other real estate owned losses (referred to as covered assets) up to $10 million and 95% of losses in excess of that amount. The term for loss sharing on non-residential real estate losses is five years with respect to losses and eight years with respect to recoveries, while the term for loss sharing on residential real estate loans is ten years with respect to losses and recoveries. The reimbursable losses from the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction. New loans made after the acquisition are not covered by the loss share agreements. | ||||||||||||||||||||||||||||
The Elizabeth State Bank acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Purchased loans acquired in a business combination, which include loans purchased in The Elizabeth State Bank acquisition, are recorded at estimated fair value on their purchase date, but the purchaser cannot carry over the related allowance for loan and lease losses. Purchased loans are accounted for under ASC 310-30, “Loans and Debt Securities with Deteriorated Credit Quality,” when the loans have evidence of credit deterioration since origination and it is probable at the date of the acquisition that Heartland will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration at the purchase date included statistics such as past due and nonaccrual status. Generally, acquired loans that meet Heartland’s definition for nonaccrual status fall within the scope of ASC 310-30. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference which is included in the carrying value of the loans. Subsequent decreases to the expected cash flows will generally result in a provision for loan and lease losses. Subsequent increases in cash flows result in a reversal of the provision for loan and lease losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on future interest income. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. | ||||||||||||||||||||||||||||
The carrying amount of the loans covered by these loss share agreements at September 30, 2013, and December 31, 2012, consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Impaired | Non | Total | Impaired | Non | Total | |||||||||||||||||||||||
Purchased | Impaired | Covered | Purchased | Impaired | Covered | |||||||||||||||||||||||
Loans | Purchased | Loans | Loans | Purchased | Loans | |||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||||
Commercial and commercial real estate | $ | 530 | $ | 1,872 | $ | 2,402 | $ | 598 | $ | 2,476 | $ | 3,074 | ||||||||||||||||
Agricultural and agricultural real estate | — | 446 | 446 | — | 748 | 748 | ||||||||||||||||||||||
Residential real estate | — | 2,433 | 2,433 | — | 2,645 | 2,645 | ||||||||||||||||||||||
Consumer loans | 500 | 95 | 595 | 89 | 697 | 786 | ||||||||||||||||||||||
Total Covered Loans | $ | 1,030 | $ | 4,846 | $ | 5,876 | $ | 687 | $ | 6,566 | $ | 7,253 | ||||||||||||||||
On the acquisition date, the preliminary estimate of the contractually required payments receivable for all loans with evidence of credit deterioration since origination acquired in the acquisition was $13.8 million and the estimated fair value of the loans was $9.0 million. At September 30, 2013, and December 31, 2012, a majority of these loans were valued based upon the liquidation value of the underlying collateral, because the expected cash flows are primarily based on the liquidation of underlying collateral and the timing and amount of the cash flows could not be reasonably estimated. There was no allowance for loan and lease losses related to these ASC 310-30 loans at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||||
On the acquisition date, the preliminary estimate of the contractually required payments receivable for all nonimpaired loans acquired in the acquisition was $28.9 million and the estimated fair value of the loans was $28.7 million. |
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ' | ||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||
Changes in the allowance for loan and lease losses for the three months and nine months ended September 30, 2013, and September 30, 2012, were as follows, in thousands: | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 9,436 | $ | 13,671 | $ | 3,055 | $ | 3,580 | $ | 7,881 | $ | — | $ | — | $ | 37,623 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
Charge-offs | (163 | ) | (630 | ) | — | (450 | ) | (1,270 | ) | — | — | (2,513 | ) | ||||||||||||||||||||
Recoveries | 78 | 514 | 1 | 76 | 383 | — | — | 1,052 | |||||||||||||||||||||||||
Provision | 3,745 | 488 | (240 | ) | 331 | 825 | — | — | 5,149 | ||||||||||||||||||||||||
Balance at | $ | 13,096 | $ | 14,043 | $ | 2,816 | $ | 3,537 | $ | 7,819 | $ | — | $ | — | $ | 41,311 | |||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 11,388 | $ | 14,473 | $ | 2,138 | $ | 3,543 | $ | 7,173 | $ | — | $ | — | $ | 38,715 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Charge-offs | (1,422 | ) | (2,561 | ) | (23 | ) | (856 | ) | (3,488 | ) | — | — | (8,350 | ) | |||||||||||||||||||
Recoveries | 983 | 1,279 | 100 | 102 | 834 | — | — | 3,298 | |||||||||||||||||||||||||
Provision | 2,147 | 852 | 601 | 748 | 3,300 | — | — | 7,648 | |||||||||||||||||||||||||
Balance at | $ | 13,096 | $ | 14,043 | $ | 2,816 | $ | 3,537 | $ | 7,819 | $ | — | $ | — | $ | 41,311 | |||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 10,287 | $ | 17,057 | $ | 2,002 | $ | 3,899 | $ | 8,193 | $ | 1 | $ | — | $ | 41,439 | |||||||||||||||||
30-Jun-12 | |||||||||||||||||||||||||||||||||
Charge-offs | (107 | ) | (1,668 | ) | (1 | ) | (100 | ) | (1,174 | ) | — | — | (3,050 | ) | |||||||||||||||||||
Recoveries | 1,550 | 717 | 1 | 95 | 151 | — | — | 2,514 | |||||||||||||||||||||||||
Provision | (462 | ) | (806 | ) | 55 | (26 | ) | 738 | (1 | ) | — | (502 | ) | ||||||||||||||||||||
Balance at | $ | 11,268 | $ | 15,300 | $ | 2,057 | $ | 3,868 | $ | 7,908 | $ | — | $ | — | $ | 40,401 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 10,547 | $ | 14,621 | $ | 1,763 | $ | 3,001 | $ | 6,874 | $ | 2 | $ | — | $ | 36,808 | |||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||
Charge-offs | (814 | ) | (2,762 | ) | (1 | ) | (376 | ) | (2,959 | ) | — | — | (6,912 | ) | |||||||||||||||||||
Recoveries | 1,799 | 2,996 | 82 | 161 | 615 | — | — | 5,653 | |||||||||||||||||||||||||
Provision | (264 | ) | 445 | 213 | 1,082 | 3,378 | (2 | ) | — | 4,852 | |||||||||||||||||||||||
Balance at | $ | 11,268 | $ | 15,300 | $ | 2,057 | $ | 3,868 | $ | 7,908 | $ | — | $ | — | $ | 40,401 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
Goodwill_Core_Deposit_Premium_
Goodwill, Core Deposit Premium and Other Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill, Core Deposit Premium and Other Intangible Assets | ' | |||||||||||||||||||||||
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
Heartland had goodwill of $30.6 million at both September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||
Other intangible assets consist of core deposit intangibles, mortgage servicing rights and customer relationship intangible. The gross carrying amount of other intangible assets and the associated accumulated amortization at September 30, 2013, and December 31, 2012, are presented in the table below, in thousands: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||
Core deposit intangibles | $ | 11,668 | $ | 9,887 | $ | 1,781 | $ | 11,668 | $ | 9,327 | $ | 2,341 | ||||||||||||
Mortgage servicing rights | 31,095 | 9,899 | 21,196 | 22,892 | 7,239 | 15,653 | ||||||||||||||||||
Customer relationship intangible | 1,177 | 719 | 458 | 1,177 | 685 | 492 | ||||||||||||||||||
Total | $ | 43,940 | $ | 20,505 | $ | 23,435 | $ | 35,737 | $ | 17,251 | $ | 18,486 | ||||||||||||
The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: | ||||||||||||||||||||||||
Core | Mortgage | Customer | ||||||||||||||||||||||
Deposit | Servicing | Relationship | ||||||||||||||||||||||
Intangibles | Rights | Intangible | Total | |||||||||||||||||||||
Three months ending December 31, 2013 | $ | 181 | $ | 1,575 | $ | 11 | $ | 1,767 | ||||||||||||||||
Year ending December 31, | ||||||||||||||||||||||||
2014 | 468 | 6,540 | 43 | 7,051 | ||||||||||||||||||||
2015 | 267 | 5,232 | 42 | 5,541 | ||||||||||||||||||||
2016 | 238 | 3,924 | 41 | 4,203 | ||||||||||||||||||||
2017 | 212 | 2,616 | 40 | 2,868 | ||||||||||||||||||||
2018 | 187 | 1,309 | 39 | 1,535 | ||||||||||||||||||||
Thereafter | 228 | — | 242 | 470 | ||||||||||||||||||||
Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of September 30, 2013. Heartland's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were $2.89 billion and $2.20 billion as of September 30, 2013, and December 31, 2012, respectively. The fair value of Heartland's mortgage servicing rights was estimated at $31.2 million and $16.0 million at September 30, 2013, and December 31, 2012, respectively. Valuation allowances of $0 and $496,000 were required as of September 30, 2013, and December 31, 2012, respectively. | ||||||||||||||||||||||||
The majority of Heartland's mortgage servicing rights portfolio is comprised of loans serviced for the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation ("FHLMC"), which are separated into 15- and 30-year tranches. At September 30, 2013, the 30-year tranche had a fair value of $23.6 million in comparison with the book value of $16.2 million. At December 31, 2012, the 30-year tranche had a fair value of $12.6 million in comparison with the book value of $12.6 million, which was net of the related valuation allowance of $496,000. At September 30, 2013, the 15-year tranche had a fair value of $4.8 million in comparison with the book value of $3.2 million. At December 31, 2012, the 15-year tranche had a fair value of $3.3 million in comparison with the book value of $3.0 million. | ||||||||||||||||||||||||
In addition to servicing FNMA and FHLMC loans, Heartland became an authorized servicer of Government National Mortgage Association ("GNMA") mortgages in late 2012. At September 30, 2013, the GNMA tranche had a fair value of $2.8 million and a book value of $1.8 million. | ||||||||||||||||||||||||
The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Balance at January 1 | $ | 15,653 | $ | 11,276 | ||||||||||||||||||||
Originations | 10,595 | 7,916 | ||||||||||||||||||||||
Amortization | (5,548 | ) | (4,727 | ) | ||||||||||||||||||||
Valuation adjustment | 496 | (674 | ) | |||||||||||||||||||||
Balance at September 30 | $ | 21,196 | $ | 13,791 | ||||||||||||||||||||
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Borrowings | ' |
BORROWINGS | |
On June 14, 2013, Heartland replaced one of its $5.0 million unsecured revolving lines of credit at an unaffiliated bank with a $20.0 million unsecured revolving line of credit at the same unaffiliated bank, resulting in a total borrowing capacity of up to $25.0 million at any one time. The new agreement matures on June 14, 2014. Heartland had no outstanding balance on its two lines of credit as of September 30, 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
Heartland uses derivative financial instruments as part of its interest rate risk management strategy. As part of the strategy, Heartland considers the use of interest rate swaps, caps, floors and collars and certain interest rate lock commitments and forward sales of securities related to mortgage banking activities. Heartland's current strategy includes the use of interest rate swaps, interest rate lock commitments, and forward sales of mortgage securities. Heartland's objectives are to add stability to its net interest margin and to manage its exposure to movements in interest rates. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. Heartland is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. Heartland minimizes this risk by entering into derivative contracts with large, stable financial institutions. Heartland has not experienced any losses from nonperformance by these counterparties. Heartland monitors counterparty risk in accordance with the provisions of ASC 815. In addition, interest rate-related derivative instruments generally contain language outlining collateral pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain threshold limits which are determined by credit ratings of each counterparty. Heartland was required to pledge $6.2 million and $6.7 million of cash as collateral at September 30, 2013, and December 31, 2012, respectively. Heartland's counterparties were required to pledge $15,000 and $0 at September 30, 2013, and December 31, 2012, respectively. | ||||||||||||||||||
Heartland's derivative and hedging instruments are recorded at fair value on the consolidated balance sheets. See Note 9, “Fair Value,” for additional fair value information and disclosures. | ||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||
Heartland has variable rate funding which creates exposure to variability in interest payments due to changes in interest rates. To manage the interest rate risk related to the variability of interest payments, Heartland has entered into various interest rate swap agreements. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are received or made on Heartland's variable-rate liabilities. For the nine months ended September 30, 2013, the change in net unrealized losses on cash flow hedges reflects changes in the fair value of the swaps and reclassification from accumulated other comprehensive income to interest expense totaling $1.6 million. For the next twelve months, Heartland estimates that cash payments and reclassification from accumulated other comprehensive income to interest expense will total $2.1 million. | ||||||||||||||||||
Heartland executed an interest rate swap transaction on April 5, 2011, with an effective date of April 20, 2011, and an expiration date of April 20, 2016, to effectively convert $15.0 million of its newly issued variable rate amortizing debt to fixed rate debt. For accounting purposes, this swap transaction is designated as a cash flow hedge of the changes in cash flows attributable to changes in one-month LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on an amount of Heartland's debt principal equal to the then-outstanding swap notional amount. At inception, Heartland asserted that the underlying principal balance would remain outstanding throughout the hedge transaction making it probable that sufficient LIBOR-based interest payments would exist through the maturity date of the swap. | ||||||||||||||||||
During the first quarter of 2009, Heartland entered into three forward-starting interest rate swap transactions to effectively convert $65.0 million of its variable interest rate subordinated debentures (issued in connection with the trust preferred securities of Heartland Financial Statutory Trust IV, V and VII) to fixed interest rate debt. For accounting purposes, these three swap transactions are designated as cash flow hedges of the changes in cash flows attributable to changes in LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on $65.0 million of Heartland's subordinated debentures (issued in connection with the trust preferred securities of Heartland Financial Statutory Trust IV, V and VII) that reset quarterly on a specified reset date. At inception, Heartland asserted that the underlying principal balance would remain outstanding throughout the hedge transaction making it probable that sufficient LIBOR-based interest payments would exist through the maturity date of the swaps. | ||||||||||||||||||
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||
Notional | Fair | Balance | Receive | Weighted | Maturity | |||||||||||||
Amount | Value | Sheet | Rate | Average | ||||||||||||||
Category | Pay Rate | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate swap | $ | 12,046 | $ | (509 | ) | Other Liabilities | 2.93 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (289 | ) | Other Liabilities | 0.254 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (1,637 | ) | Other Liabilities | 0.26 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,905 | ) | Other Liabilities | 0.271 | % | 3.355 | % | 1/7/20 | |||||||||
December 31, 2012 | ||||||||||||||||||
Interest rate swap | $ | 13,002 | $ | (711 | ) | Other Liabilities | 2.961 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (708 | ) | Other Liabilities | 0.308 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (2,186 | ) | Other Liabilities | 0.311 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (3,020 | ) | Other Liabilities | 0.351 | % | 3.355 | % | 1/7/20 | |||||||||
The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||
Recognized in OCI | Reclassified from AOCI into Income | Recognized in Income on Derivatives | ||||||||||||||||
Amount of Gain (Loss) | Category | Amount of Gain (Loss) | Category | Amount of Gain (Loss) | ||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate swap | $ | 203 | Interest Expense | $ | (210 | ) | Other Income | $ | — | |||||||||
Interest rate swap | 419 | Interest Expense | (436 | ) | Other Income | — | ||||||||||||
Interest rate swap | 548 | Interest Expense | (446 | ) | Other Income | — | ||||||||||||
Interest rate swap | 1,115 | Interest Expense | (460 | ) | Other Income | — | ||||||||||||
September 30, 2012 | ||||||||||||||||||
Interest rate swap | $ | (58 | ) | Interest Expense | $ | (226 | ) | Other Income | $ | — | ||||||||
Interest rate swap | 189 | Interest Expense | (397 | ) | Other Income | — | ||||||||||||
Interest rate swap | (262 | ) | Interest Expense | (421 | ) | Other Income | — | |||||||||||
Interest rate swap | (606 | ) | Interest Expense | (442 | ) | Other Income | — | |||||||||||
Mortgage Derivatives | ||||||||||||||||||
Heartland also has entered into interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans and mortgage backed securities that are considered derivative instruments. The fair value of these commitments is recorded on the consolidated balance sheets with the changes in fair value recorded in the consolidated statements of income as a component of gains on sale of loans held for sale. These derivative contracts are designated as free standing derivative contracts and are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and therefore do not qualify for hedge accounting treatment. | ||||||||||||||||||
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments not designated as hedging instruments at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||
Balance Sheet Category | Notional | Fair | ||||||||||||||||
Amount | Value | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Other Assets | $ | 104,098 | $ | 4,601 | |||||||||||||
Forward commitments | Other Assets | 69,100 | 1,271 | |||||||||||||||
Forward commitments | Other Liabilities | 185,942 | (3,320 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Other Assets | $ | 267,397 | $ | 9,353 | |||||||||||||
Forward commitments | Other Assets | 168,910 | 462 | |||||||||||||||
Forward commitments | Other Liabilities | 351,996 | (1,221 | ) | ||||||||||||||
The table below identifies the income statement category of the gains and losses recognized in income on Heartland's derivative instruments not designated as hedging instruments for the nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||
Income Statement Category | Year-to-Date | |||||||||||||||||
Gain (Loss) Recognized | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on sale of loans held for sale | $ | (6,047 | ) | ||||||||||||||
Forward commitments | Gains on sale of loans held for sale | (1,289 | ) | |||||||||||||||
September 30, 2012 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on sale of loans held for sale | $ | 12,759 | |||||||||||||||
Forward commitments | Gains on sale of loans held for sale | (3,870 | ) |
Fair_Value
Fair Value | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
FAIR VALUE | ||||||||||||||||||||
Heartland utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale, trading securities and derivatives are recorded in the consolidated balance sheets at fair value on a recurring basis. Additionally, from time to time, Heartland may be required to record at fair value other assets on a nonrecurring basis such as loans held for sale, loans held to maturity and certain other assets including, but not limited to, mortgage servicing rights and other real estate owned. These nonrecurring fair value adjustments typically involve application of lower of cost or fair value accounting or write-downs of individual assets. | ||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||
Under ASC 820, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | ||||||||||||||||||||
Level 1 — Valuation is based upon quoted prices for identical instruments in active markets. | ||||||||||||||||||||
Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, or similar instruments in markets that are not active, and model-based valuation techniques for all significant assumptions are observable in the market. | ||||||||||||||||||||
Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||||||||||||||||||||
The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring or non-recurring basis. | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Securities Available for Sale and Held to Maturity | ||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. Securities held to maturity are generally recorded at cost and are recorded at fair value only to the extent a decline in fair value is determined to be other-than-temporary. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities. Level 2 securities include U.S. government and agency securities, mortgage-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. Level 3 securities consist primarily of z-TRANCHE mortgage-backed securities. On a quarterly basis, a secondary independent pricing service is used for a sample of securities to validate the pricing from Heartland's primary pricing service. | ||||||||||||||||||||
Trading Assets | ||||||||||||||||||||
Trading assets are recorded at fair value and consist of securities held for trading purposes. The valuation method for trading securities is the same as the methodology used for securities classified as available for sale. | ||||||||||||||||||||
Loans Held for Sale | ||||||||||||||||||||
Loans held for sale are carried at the lower of cost or fair value on an aggregate basis. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, Heartland classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. | ||||||||||||||||||||
Loans Held to Maturity | ||||||||||||||||||||
Heartland does not record loans held to maturity at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310. The fair value of impaired loans is measured using one of the following impairment methods: 1) the present value of expected future cash flows discounted at the loan's effective interest rate or 2) the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. In accordance with ASC 820, impaired loans measured at fair value are classified as nonrecurring Level 3 in the fair value hierarchy. | ||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||
Mortgage servicing rights assets represent the value associated with servicing residential real estate loans that have been sold to outside investors with servicing retained. Heartland uses the amortization method (i.e., the lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, to determine the carrying value of its mortgage servicing rights. The fair value for servicing assets is determined through discounted cash flow analysis and utilizes discount rates, prepayment speeds and delinquency rate assumptions as inputs. All of these assumptions require a significant degree of management estimation and judgment. Mortgage servicing rights are subject to impairment testing. The carrying values of these rights are reviewed quarterly for impairment based upon the calculation of fair value as performed by an outside third party. For purposes of measuring impairment, the rights are stratified into certain risk characteristics including note type and note term. If the valuation model reflects a value less than the carrying value, mortgage servicing rights are adjusted to fair value through a valuation allowance. Heartland classifies mortgage servicing rights as nonrecurring with Level 3 measurement inputs. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
Heartland's current interest rate risk strategy includes interest rate swaps, interest rate lock commitments, and forward sales of securities. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. To comply with the provisions of ASC 820, Heartland incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, Heartland has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||||||||||||||||||
Although Heartland has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2013, and December 31, 2012, Heartland has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, Heartland has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Mortgage Derivatives | ||||||||||||||||||||
Mortgage derivatives include interest rate lock commitments to originate held for sale residential mortgage loans for individual customers and forward commitments to sell residential mortgage loans and mortgage backed securities to various investors. The fair value of these derivative instruments is primarily based on quoted prices for similar assets in active markets that Heartland has the ability to access and are classified in Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Other Real Estate Owned | ||||||||||||||||||||
Other real estate owned ("OREO") represents property acquired through foreclosures and settlements of loans. Property acquired is carried at the fair value of the property at the time of acquisition (representing the property's cost basis), plus any acquisition costs, or the estimated fair value of the property, less disposal costs. Heartland considers third party appraisals, as well as independent fair value assessments from realtors or persons involved in selling OREO, in determining the fair value of particular properties. Accordingly, the valuation of OREO is subject to significant external and internal judgment. Heartland periodically reviews OREO to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. OREO is classified as nonrecurring Level 3. | ||||||||||||||||||||
The table below presents Heartland's assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013, and December 31, 2012, in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: | ||||||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Trading securities | $ | 1,219 | $ | 1,219 | $ | — | $ | — | ||||||||||||
Securities available for sale | 1,391,610 | 8,028 | 1,378,625 | 4,957 | ||||||||||||||||
Derivative assets | 5,872 | — | 5,872 | — | ||||||||||||||||
Total assets at fair value | $ | 1,398,701 | $ | 9,247 | $ | 1,384,497 | $ | 4,957 | ||||||||||||
Derivative liabilities | $ | 7,660 | $ | — | $ | 7,660 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 7,660 | $ | — | $ | 7,660 | $ | — | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Trading securities | $ | 380 | $ | 380 | $ | — | $ | — | ||||||||||||
Securities available for sale | 1,506,075 | 12,811 | 1,488,924 | 4,340 | ||||||||||||||||
Derivative assets | 9,815 | — | 9,815 | — | ||||||||||||||||
Total assets at fair value | $ | 1,516,270 | $ | 13,191 | $ | 1,498,739 | $ | 4,340 | ||||||||||||
Derivative liabilities | $ | 7,846 | $ | — | $ | 7,846 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 7,846 | $ | — | $ | 7,846 | $ | — | ||||||||||||
There were no transfers between Levels 1, 2, or 3 during the three month and nine month periods ended September 30, 2013. | ||||||||||||||||||||
As of December 31, 2012, Heartland revised the classification of government sponsored agency securities from previous filings. In previous filings, government sponsored agency securities were classified as Level 1 under ASC 820. Heartland revised the classifications to Level 2 as of December 31, 2012, as the determination of fair value requires model based pricing or pricing based on similar securities. The resulting change in presentation does not have a material impact on the financial statements and did not affect the method by which Heartland estimates fair value, nor the resulting fair values. | ||||||||||||||||||||
The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: | ||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 12,455 | $ | — | $ | — | $ | 12,455 | $ | 472 | ||||||||||
Commercial real estate | 8,004 | — | — | 8,004 | 1,374 | |||||||||||||||
Agricultural and agricultural real estate | 6,749 | — | — | 6,749 | — | |||||||||||||||
Residential real estate | 3,284 | — | — | 3,284 | — | |||||||||||||||
Consumer | 1,936 | — | — | 1,936 | 14 | |||||||||||||||
Total collateral dependent impaired loans | $ | 32,428 | $ | — | $ | — | $ | 32,428 | $ | 1,860 | ||||||||||
Other real estate owned | $ | 33,018 | $ | — | $ | — | $ | 33,018 | $ | 2,440 | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Collateral dependent impaired loans | ||||||||||||||||||||
Commercial | $ | 7,681 | $ | — | $ | — | $ | 7,681 | $ | 1,799 | ||||||||||
Commercial real estate | 44,471 | — | — | 44,471 | 6,898 | |||||||||||||||
Agricultural and agricultural real estate | 16,019 | — | — | 16,019 | 1 | |||||||||||||||
Residential real estate | 6,660 | — | — | 6,660 | 988 | |||||||||||||||
Consumer | 4,121 | — | — | 4,121 | 4,818 | |||||||||||||||
Total collateral dependent impaired loans | $ | 78,952 | $ | — | $ | — | $ | 78,952 | $ | 14,504 | ||||||||||
Other real estate owned | $ | 35,822 | $ | — | $ | — | $ | 35,822 | $ | 6,953 | ||||||||||
Mortgage servicing rights | $ | 15,956 | $ | — | $ | — | $ | 15,956 | $ | 477 | ||||||||||
The following tables present additional quantitative information about assets measured at fair value and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: | ||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 9/30/13 | Technique | Input | (Weighted Average) | |||||||||||||||||
z-TRANCHE Securities | $ | 4,957 | Discounted cash flows | Pretax discount rate | 7.00 - 9.00% | |||||||||||||||
Actual defaults | 12.71-20.14% (15.52%) | |||||||||||||||||||
Actual deferrals | 6.25-22.35% (11.32%) | |||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 12,455 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Commercial real estate | 8,004 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Agricultural and agricultural real estate | 6,749 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Residential real estate | 3,284 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Consumer | 1,936 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Other real estate owned | 33,018 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | ||||||||||||||||||||
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. | ||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/12 | Technique | Input | (Weighted Average) | |||||||||||||||||
z-TRANCHE Securities | $ | 4,340 | Discounted cash flows | Pretax discount rate | 8.00 - 10.00% | |||||||||||||||
Actual defaults | 13.94-20.94% (15.52%) | |||||||||||||||||||
Actual deferrals | 6.30-23.71% (11.32%) | |||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 7,681 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Commercial real estate | 44,471 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Agricultural and agricultural real estate | 16,019 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Residential real estate | 6,660 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Consumer | 4,121 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Other real estate owned | 35,822 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | ||||||||||||||||||||
Mortgage servicing rights | 15,956 | Discounted cash flows | Prepayment speeds, servicing costs and escrow analysis | Average CPR Life | ||||||||||||||||
12.99 - 18.71% | ||||||||||||||||||||
-18.05% | ||||||||||||||||||||
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. | ||||||||||||||||||||
The changes in fair value of Level 3 assets that are measured on a recurring basis are summarized in the following table, in thousands: | ||||||||||||||||||||
For the Nine Months Ended | For the Year Ended | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Balance at January 1, | $ | 4,340 | $ | 3,243 | ||||||||||||||||
Total gains (losses): | ||||||||||||||||||||
Included in earnings | 642 | — | ||||||||||||||||||
Included in other comprehensive income | 794 | 938 | ||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||
Purchases | — | 195 | ||||||||||||||||||
Sales | (651 | ) | — | |||||||||||||||||
Settlements | (168 | ) | (36 | ) | ||||||||||||||||
Balance at period end | $ | 4,957 | $ | 4,340 | ||||||||||||||||
The tables below summarize the estimated fair value of Heartland's financial instruments as defined by ASC 825 as of September 30, 2013, and December 31, 2012, in thousands. The carrying amounts in the following tables are recorded in the consolidated balance sheets under the indicated captions. In accordance with ASC 825, the assets and liabilities that are not financial instruments are not included in the disclosure, such as the value of the mortgage servicing rights, premises, furniture and equipment, goodwill and other intangibles and other liabilities. | ||||||||||||||||||||
Heartland does not believe that the estimated information presented herein is representative of the earnings power or value of Heartland. The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of Heartland to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Carrying | Estimated | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Amount | Fair | Active Markets for | Observable | Unobservable | ||||||||||||||||
Value | Identical Assets | Inputs | Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 165,008 | $ | 165,008 | $ | 165,008 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | 3,605 | 3,605 | 3,605 | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | 1,219 | 1,219 | 1,219 | — | — | |||||||||||||||
Available for sale | 1,391,610 | 1,391,610 | 8,028 | 1,378,625 | 4,957 | |||||||||||||||
Held to maturity | 53,841 | 53,893 | — | 53,893 | — | |||||||||||||||
Total securities | 1,446,670 | 1,446,722 | 9,247 | 1,432,518 | 4,957 | |||||||||||||||
Loans held for sale | 61,326 | 61,640 | — | 61,640 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 741,728 | 735,522 | — | 723,067 | 12,455 | |||||||||||||||
Commercial real estate | 1,274,043 | 1,276,194 | — | 1,268,190 | 8,004 | |||||||||||||||
Agricultural and agricultural real estate | 322,502 | 323,236 | — | 316,487 | 6,749 | |||||||||||||||
Residential real estate | 267,341 | 259,334 | — | 256,050 | 3,284 | |||||||||||||||
Consumer | 260,657 | 263,888 | — | 261,952 | 1,936 | |||||||||||||||
Total Loans, net | 2,866,271 | 2,858,174 | — | 2,825,746 | 32,428 | |||||||||||||||
Derivatives | 5,872 | 5,872 | — | 5,872 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,073,688 | 1,073,688 | — | 1,073,688 | — | |||||||||||||||
Savings deposits | 2,043,397 | 2,043,397 | — | 2,043,397 | — | |||||||||||||||
Time deposits | 807,913 | 807,913 | — | 807,913 | — | |||||||||||||||
Short term borrowings | 224,048 | 224,048 | — | 224,048 | — | |||||||||||||||
Other borrowings | 322,538 | 321,074 | — | 321,074 | — | |||||||||||||||
Derivatives | 7,660 | 7,660 | — | 7,660 | — | |||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Carrying | Estimated | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Amount | Fair | Active Markets for | Observable | Unobservable | ||||||||||||||||
Value | Identical Assets | Inputs | Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 168,054 | $ | 168,054 | $ | 168,054 | $ | — | $ | — | ||||||||||
Securities: | ||||||||||||||||||||
Trading | 380 | 380 | 380 | — | — | |||||||||||||||
Available for sale | 1,506,075 | 1,506,075 | 12,811 | 1,488,924 | 4,340 | |||||||||||||||
Held to maturity | 55,502 | 55,982 | — | 55,982 | — | |||||||||||||||
Total securities | 1,561,957 | 1,562,437 | 13,191 | 1,544,906 | 4,340 | |||||||||||||||
Loans held for sale | 96,165 | 96,165 | — | 96,165 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 700,225 | 691,605 | — | 683,924 | 7,681 | |||||||||||||||
Commercial real estate | 1,275,770 | 1,281,031 | — | 1,236,560 | 44,471 | |||||||||||||||
Agricultural and agricultural real estate | 326,867 | 329,443 | — | 313,424 | 16,019 | |||||||||||||||
Residential real estate | 248,608 | 237,050 | — | 230,390 | 6,660 | |||||||||||||||
Consumer | 238,617 | 241,978 | — | 237,857 | 4,121 | |||||||||||||||
Total Loans, net | 2,790,087 | 2,781,107 | — | 2,702,155 | 78,952 | |||||||||||||||
Mortgage derivatives | 9,815 | 9,815 | — | 9,815 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 974,232 | 974,232 | — | 974,232 | — | |||||||||||||||
Savings deposits | 2,004,438 | 2,004,438 | — | 2,004,438 | — | |||||||||||||||
Time deposits | 866,990 | 866,990 | — | 866,990 | — | |||||||||||||||
Short term borrowings | 224,626 | 224,626 | — | 224,626 | — | |||||||||||||||
Other borrowings | 389,025 | 376,422 | — | 376,422 | — | |||||||||||||||
Derivatives | 7,846 | 7,846 | — | 7,846 | — | |||||||||||||||
Cash and Cash Equivalents — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. | ||||||||||||||||||||
Time Deposits in Other Financial Institutions — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. | ||||||||||||||||||||
Securities — For securities either held to maturity, available for sale or trading, fair value equals quoted market price if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. For Level 3 securities, Heartland utilizes independent pricing provided by third party vendors or brokers. | ||||||||||||||||||||
Loans and Leases — The fair value of loans is estimated using an entrance price concept 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 the same remaining maturities. The fair value of impaired loans is measured using the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the underlying collateral. The fair value of loans held for sale is estimated using quoted market prices. | ||||||||||||||||||||
Mortgage Derivatives — The fair value of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis of the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. | ||||||||||||||||||||
Derivatives — The fair value of all derivatives is estimated based on the amount that Heartland would pay or would be paid to terminate the contract or agreement, using current rates and, when appropriate, the current creditworthiness of the counter-party. | ||||||||||||||||||||
Deposits — The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. If the fair value of the fixed maturity certificates of deposit is calculated at less than the carrying amount, the carrying value of these deposits is reported as the fair value. | ||||||||||||||||||||
Short-term and Other Borrowings — Rates currently available to Heartland for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. | ||||||||||||||||||||
Commitments to Extend Credit, Unused Lines of Credit and Standby Letters of Credit — Based upon management's analysis of the off balance sheet financial instruments, there are no significant unrealized gains or losses associated with these financial instruments based upon review of the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Mortgage Banking [Abstract] | ' | |||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||||||||||
Heartland has identified two operating segments for purposes of financial reporting: community and other banking and retail mortgage banking. These segments were determined based on the products and services provided or the type of customers served and is consistent with the information used by Heartland's key decision makers to make operating decisions and to assess Heartland's performance. The following tables present financial information from Heartland's operating segments for the three-month and nine-month periods ended September 30, 2013, and 2012, in thousands. | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Community | Retail | Total | Community | Retail | Total | |||||||||||||||||||
and Other | Mortgage | and Other | Mortgage | |||||||||||||||||||||
Banking | Banking | Banking | Banking | |||||||||||||||||||||
Net interest income | $ | 39,291 | $ | 589 | $ | 39,880 | $ | 36,412 | $ | 400 | $ | 36,812 | ||||||||||||
Provision for loan losses | 5,149 | — | 5,149 | (502 | ) | — | (502 | ) | ||||||||||||||||
Total noninterest income | 12,309 | 8,409 | 20,718 | 13,988 | 15,778 | 29,766 | ||||||||||||||||||
Total noninterest expense | 36,813 | 10,334 | 47,147 | 35,597 | 11,562 | 47,159 | ||||||||||||||||||
Income (loss) before taxes | $ | 9,638 | $ | (1,336 | ) | $ | 8,302 | $ | 15,305 | $ | 4,616 | $ | 19,921 | |||||||||||
Segment Assets | $ | 4,825,781 | $ | 86,949 | $ | 4,912,730 | $ | 4,467,574 | $ | 125,623 | $ | 4,593,197 | ||||||||||||
Average Loans | $ | 2,867,933 | $ | 69,575 | $ | 2,937,508 | $ | 2,628,811 | $ | 98,995 | $ | 2,727,806 | ||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Community | Retail | Total | Community | Retail | Total | |||||||||||||||||||
and Other | Mortgage | and Other | Mortgage | |||||||||||||||||||||
Banking | Banking | Banking | Banking | |||||||||||||||||||||
Net interest income | $ | 115,968 | $ | 1,503 | $ | 117,471 | $ | 110,332 | $ | 1,850 | $ | 112,182 | ||||||||||||
Provision for loan losses | 7,648 | — | 7,648 | 4,852 | — | 4,852 | ||||||||||||||||||
Total noninterest income | 37,630 | 34,414 | 72,044 | 40,902 | 40,530 | 81,432 | ||||||||||||||||||
Total noninterest expense | 108,877 | 33,783 | 142,660 | 99,902 | 28,856 | 128,758 | ||||||||||||||||||
Income (loss) before taxes | $ | 37,073 | $ | 2,134 | $ | 39,207 | $ | 46,480 | $ | 13,524 | $ | 60,004 | ||||||||||||
Segment Assets | $ | 4,825,781 | $ | 86,949 | $ | 4,912,730 | $ | 4,467,574 | $ | 125,623 | $ | 4,593,197 | ||||||||||||
Average Loans | $ | 2,820,418 | $ | 86,552 | $ | 2,906,970 | $ | 2,570,493 | $ | 90,063 | $ | 2,660,556 | ||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Effect of New Financial Accounting Standards | ' |
Effect of New Financial Accounting Standards | |
In July 2012, the FASB issued ASU No. 2012-02, "Testing Indefinite-Lived Intangible Assets for Impairment," which permits an entity to make a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. Prior to this ASU, entities were required to quantitatively test indefinite-lived intangible assets for impairment at least annually and more frequently if indicators of impairment exist. Under the new standard, if an entity concludes, based on an evaluation of all relevant qualitative factors, that it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, it is not required to perform the quantitative impairment test for that asset. Heartland adopted this standard on January 1, 2013, and the adoption did not have an impact on the results of operations, financial position and liquidity. | |
In September 2012, the FASB issued ASU No. 2012-06, "Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution," to address diversity in practice about how to subsequently measure an indemnification asset for a government-assisted acquisition that includes a loss-sharing agreement. This guidance requires a reporting entity to account for a change in the subsequent measurement of the indemnification asset on the same basis as the changes in the asset subject to indemnification. Heartland adopted this standard on January 1, 2013, and the adoption did not have a material impact on the accounting for its loss share receivable from the FDIC under its various loss share agreements. | |
In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," to address further disclosure of reclassification amounts out of other comprehensive income. The guidance requires that a reporting entity present, either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and income statement line items affected by the reclassification. Heartland adopted this standard on January 1, 2013, and the adoption did not have an impact on the results of operations, financial position and liquidity. | |
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," to eliminate the diversity in practice and to increase the comparability of financial statements among companies. The guidance requires that a reporting entity generally must show an unrecognized tax benefit, or a portion of an unrecognized tax benefit, for a net operating loss, or NOL, carryforward, similar tax loss or tax credit carryforward as a reduction of a deferred tax asset. However, the entity should present the unrecognized tax benefit as a liability and not as a reduction of a deferred tax asset if the carryforward or tax loss is not available on the financial statement date to settle any additional income tax liability that would result from the disallowance of the tax position under the applicable tax law, or the applicable tax law does not require the company to use, and the company does not intend to use, the carryforward or tax loss to settle additional income taxes resulting from the disallowance of the tax position. The guidance does not require any new recurring disclosures because it does not affect the recognition or measurement of uncertain tax positions. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Early adoption and retrospective application are both permitted. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||
Amounts used in the determination of basic and diluted earnings per share for the three month and nine month periods ended September 30, 2013 and 2012, are shown in the tables below: | ||||||||||||||
Three Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(Dollars and number of shares in thousands, except per share data) | 2013 | 2012 | ||||||||||||
Net income attributable to Heartland | $ | 6,810 | $ | 13,587 | ||||||||||
Preferred dividends and discount | (276 | ) | (949 | ) | ||||||||||
Net income available to common stockholders | $ | 6,534 | $ | 12,638 | ||||||||||
Weighted average common shares outstanding for basic earnings per share | 16,936 | 16,474 | ||||||||||||
Assumed incremental common shares issued for common stock equivalents | 285 | 272 | ||||||||||||
Weighted average common shares for diluted earnings per share | 17,221 | 16,746 | ||||||||||||
Earnings per common share — basic | $ | 0.39 | $ | 0.77 | ||||||||||
Earnings per common share — diluted | $ | 0.38 | $ | 0.75 | ||||||||||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 105 | 446 | ||||||||||||
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
(Dollars and number of shares in thousands, except per share data) | 2013 | 2012 | ||||||||||||
Net income attributable to Heartland | $ | 28,854 | $ | 40,385 | ||||||||||
Preferred dividends and discount | (889 | ) | (2,991 | ) | ||||||||||
Net income available to common stockholders | $ | 27,965 | $ | 37,394 | ||||||||||
Weighted average common shares outstanding for basic earnings per share | 16,904 | 16,484 | ||||||||||||
Assumed incremental common shares issued for common stock equivalents | 279 | 246 | ||||||||||||
Weighted average common shares for diluted earnings per share | 17,183 | 16,730 | ||||||||||||
Earnings per common share — basic | $ | 1.65 | $ | 2.27 | ||||||||||
Earnings per common share — diluted | $ | 1.63 | $ | 2.24 | ||||||||||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 105 | 446 | ||||||||||||
Schedule of Status of Stock Options | ' | |||||||||||||
A summary of the status of the stock options as of September 30, 2013 and 2012, and changes during the nine months ended September 30, 2013 and 2012, follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | |||||||||||
Outstanding at January 1 | 377,907 | $ | 22.62 | 570,762 | $ | 21.06 | ||||||||
Granted | — | — | — | — | ||||||||||
Exercised | (68,586 | ) | 19.54 | (112,699 | ) | 17.07 | ||||||||
Forfeited | (1,800 | ) | 26.68 | (12,334 | ) | 23.68 | ||||||||
Outstanding at September 30 | 307,521 | $ | 23.28 | 445,729 | $ | 22 | ||||||||
Options exercisable at September 30 | 307,521 | $ | 23.28 | 399,846 | $ | 22.39 | ||||||||
Securities_Tables
Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2013, and December 31, 2012, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 7,836 | $ | 192 | $ | — | $ | 8,028 | ||||||||||||||||
Mortgage-backed securities | 942,819 | 9,778 | (19,450 | ) | 933,147 | |||||||||||||||||||
Obligations of states and political subdivisions | 436,914 | 8,583 | (16,662 | ) | 428,835 | |||||||||||||||||||
Total debt securities | 1,387,569 | 18,553 | (36,112 | ) | 1,370,010 | |||||||||||||||||||
Equity securities | 21,537 | 63 | — | 21,600 | ||||||||||||||||||||
Total | $ | 1,409,106 | $ | 18,616 | $ | (36,112 | ) | $ | 1,391,610 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 21,002 | $ | 443 | $ | (1 | ) | $ | 21,444 | |||||||||||||||
Mortgage-backed securities | 1,027,234 | 19,002 | (10,035 | ) | 1,036,201 | |||||||||||||||||||
Obligations of states and political subdivisions | 403,077 | 23,560 | (192 | ) | 426,445 | |||||||||||||||||||
Total debt securities | 1,451,313 | 43,005 | (10,228 | ) | 1,484,090 | |||||||||||||||||||
Equity securities | 21,252 | 733 | — | 21,985 | ||||||||||||||||||||
Total | $ | 1,472,565 | $ | 43,738 | $ | (10,228 | ) | $ | 1,506,075 | |||||||||||||||
Held-to-maturity Securities | ' | |||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2013, and December 31, 2012, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 6,045 | $ | 290 | $ | (238 | ) | $ | 6,097 | |||||||||||||||
Obligations of states and political subdivisions | 47,796 | — | — | 47,796 | ||||||||||||||||||||
Total | $ | 53,841 | $ | 290 | $ | (238 | ) | $ | 53,893 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 7,040 | $ | 492 | $ | (12 | ) | $ | 7,520 | |||||||||||||||
Obligations of states and political subdivisions | 48,462 | — | — | 48,462 | ||||||||||||||||||||
Total | $ | 55,502 | $ | 492 | $ | (12 | ) | $ | 55,982 | |||||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||
The amortized cost and estimated fair value of debt securities available for sale at September 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 7,737 | $ | 7,808 | ||||||||||||||||||||
Due in 1 to 5 years | 38,189 | 39,952 | ||||||||||||||||||||||
Due in 5 to 10 years | 47,239 | 48,207 | ||||||||||||||||||||||
Due after 10 years | 351,585 | 340,896 | ||||||||||||||||||||||
Total debt securities | 444,750 | 436,863 | ||||||||||||||||||||||
Mortgage-backed securities | 942,819 | 933,147 | ||||||||||||||||||||||
Equity securities | 21,537 | 21,600 | ||||||||||||||||||||||
Total investment securities | $ | 1,409,106 | $ | 1,391,610 | ||||||||||||||||||||
The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2013, by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | — | $ | — | ||||||||||||||||||||
Due in 1 to 5 years | 1,281 | 1,281 | ||||||||||||||||||||||
Due in 5 to 10 years | 10,200 | 10,200 | ||||||||||||||||||||||
Due after 10 years | 36,315 | 36,315 | ||||||||||||||||||||||
Total debt securities | 47,796 | 47,796 | ||||||||||||||||||||||
Mortgage-backed securities | 6,045 | 6,097 | ||||||||||||||||||||||
Total investment securities | $ | 53,841 | $ | 53,893 | ||||||||||||||||||||
Schedule of Realized Gain (Loss) | ' | |||||||||||||||||||||||
Gross gains and losses realized related to the sales of securities for the three and nine month periods ended September 30, are summarized as follows, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Proceeds from sales | $ | 130,031 | $ | 147,199 | 347,170 | $ | 488,350 | |||||||||||||||||
Gross security gains | 1,420 | 5,212 | 7,703 | 14,592 | ||||||||||||||||||||
Gross security losses | 302 | — | 1,091 | 486 | ||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | |||||||||||||||||||||||
The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 2013, and December 31, 2012. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was September 30, 2012, and December 31, 2011, respectively. Securities for which Heartland has taken credit-related OTTI write-downs are categorized as being "less than 12 months" or "12 months or longer" in a continuous loss position based on the point in time that the fair value declined to below the cost basis and not the period of time since the credit-related OTTI write-down. | ||||||||||||||||||||||||
Securities available for sale | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Mortgage-backed securities | 679,247 | (18,529 | ) | 30,886 | (921 | ) | 710,133 | (19,450 | ) | |||||||||||||||
Obligations of states and political subdivisions | 255,451 | (16,662 | ) | — | — | 255,451 | (16,662 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 934,698 | $ | (35,191 | ) | $ | 30,886 | $ | (921 | ) | $ | 965,584 | $ | (36,112 | ) | |||||||||
December 31, 2012 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 1,517 | $ | (1 | ) | $ | — | $ | — | $ | 1,517 | $ | (1 | ) | ||||||||||
Mortgage-backed securities | 332,842 | (9,121 | ) | 24,489 | (914 | ) | 357,331 | (10,035 | ) | |||||||||||||||
Obligations of states and political subdivisions | 22,503 | (192 | ) | — | — | 22,503 | (192 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 356,862 | $ | (9,314 | ) | $ | 24,489 | $ | (914 | ) | $ | 381,351 | $ | (10,228 | ) | |||||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ' | |||||||||||||||||||||||
Securities held to maturity | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 3,082 | $ | (238 | ) | $ | 3,082 | $ | (238 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | — | $ | — | $ | 3,082 | $ | (238 | ) | $ | 3,082 | $ | (238 | ) | ||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 3,296 | $ | (12 | ) | $ | 3,296 | $ | (12 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Total temporarily impaired securities | $ | — | $ | — | $ | 3,296 | $ | (12 | ) | $ | 3,296 | $ | (12 | ) | ||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||||||||||||||
The following table shows the detail of total OTTI write-downs included in earnings, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Available for sale debt securities: | ||||||||||||||||||||||||
Mortgage backed securities | $ | — | $ | — | $ | — | $ | 184 | ||||||||||||||||
Held to maturity debt securities: | ||||||||||||||||||||||||
Mortgage backed securities | — | — | — | 797 | ||||||||||||||||||||
Total debt security OTTI write-downs included in earnings | $ | — | $ | — | $ | — | $ | 981 | ||||||||||||||||
The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income ("AOCI") for the same securities, in thousands: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Recorded as part of gross realized losses: | ||||||||||||||||||||||||
Credit related OTTI | $ | — | $ | — | $ | — | $ | 981 | ||||||||||||||||
Intent to sell OTTI | — | — | — | — | ||||||||||||||||||||
Total recorded as part of gross realized losses | — | — | — | 981 | ||||||||||||||||||||
Recorded directly to AOCI for non-credit related impairment: | ||||||||||||||||||||||||
Residential mortgage backed securities | — | — | — | 683 | ||||||||||||||||||||
Accretion of non-credit related impairment | (24 | ) | (24 | ) | (72 | ) | (47 | ) | ||||||||||||||||
Total changes to AOCI for non-credit related impairment | (24 | ) | (24 | ) | (72 | ) | 636 | |||||||||||||||||
Total OTTI losses (accretion) recorded on debt securities, net | $ | (24 | ) | $ | (24 | ) | $ | (72 | ) | $ | 1,617 | |||||||||||||
Loans_and_Leases_Tables
Loans and Leases (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Loans and Leases | ' | |||||||||||||||||||||||||||
Loans and leases as of September 30, 2013, and December 31, 2012, were as follows, in thousands: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Loans and leases receivable held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 755,658 | $ | 712,308 | ||||||||||||||||||||||||
Commercial real estate | 1,287,337 | 1,289,184 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 324,339 | 328,311 | ||||||||||||||||||||||||||
Residential real estate | 269,501 | 249,689 | ||||||||||||||||||||||||||
Consumer | 268,112 | 245,678 | ||||||||||||||||||||||||||
Gross loans and leases receivable held to maturity | 2,904,947 | 2,825,170 | ||||||||||||||||||||||||||
Unearned discount | (232 | ) | (676 | ) | ||||||||||||||||||||||||
Deferred loan fees | (3,009 | ) | (2,945 | ) | ||||||||||||||||||||||||
Total net loans and leases receivable held to maturity | 2,901,706 | 2,821,549 | ||||||||||||||||||||||||||
Loans covered under loss share agreements: | ||||||||||||||||||||||||||||
Commercial and commercial real estate | 2,402 | 3,074 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 446 | 748 | ||||||||||||||||||||||||||
Residential real estate | 2,433 | 2,645 | ||||||||||||||||||||||||||
Consumer | 595 | 786 | ||||||||||||||||||||||||||
Total loans covered under loss share agreements | 5,876 | 7,253 | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (41,311 | ) | (38,715 | ) | ||||||||||||||||||||||||
Loans and leases receivable, net | $ | 2,866,271 | $ | 2,790,087 | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses, Based on Impairment Methodology | ' | |||||||||||||||||||||||||||
All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no significant changes to the accounting for the allowance for loan and lease losses policy during 2013. | ||||||||||||||||||||||||||||
Allowance For Loan and Lease Losses | Gross Loans and Leases Receivable Held to Maturity | |||||||||||||||||||||||||||
Ending Balance | Ending Balance Under ASC | Total | Ending Balance Evaluated for Impairment Under ASC | Ending Balance Evaluated for Impairment Under ASC | Total | |||||||||||||||||||||||
Under ASC | 450-20 | 310-10-35 | 450-20 | |||||||||||||||||||||||||
310-10-35 | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 3,178 | $ | 9,918 | $ | 13,096 | $ | 21,696 | $ | 733,962 | $ | 755,658 | ||||||||||||||||
Commercial real estate | 838 | 13,205 | 14,043 | 28,018 | 1,259,319 | 1,287,337 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 619 | 2,197 | 2,816 | 19,249 | 305,090 | 324,339 | ||||||||||||||||||||||
Residential real estate | 678 | 2,859 | 3,537 | 6,986 | 262,515 | 269,501 | ||||||||||||||||||||||
Consumer | 1,828 | 5,991 | 7,819 | 5,185 | 262,927 | 268,112 | ||||||||||||||||||||||
Total | $ | 7,141 | $ | 34,170 | $ | 41,311 | $ | 81,134 | $ | 2,823,813 | $ | 2,904,947 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 1,350 | $ | 10,038 | $ | 11,388 | $ | 9,031 | $ | 703,277 | $ | 712,308 | ||||||||||||||||
Commercial real estate | 1,112 | 13,361 | 14,473 | 45,583 | 1,243,601 | 1,289,184 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 109 | 2,029 | 2,138 | 16,128 | 312,183 | 328,311 | ||||||||||||||||||||||
Residential real estate | 783 | 2,760 | 3,543 | 7,443 | 242,246 | 249,689 | ||||||||||||||||||||||
Consumer | 1,270 | 5,903 | 7,173 | 5,391 | 240,287 | 245,678 | ||||||||||||||||||||||
Total | $ | 4,624 | $ | 34,091 | $ | 38,715 | $ | 83,576 | $ | 2,741,594 | $ | 2,825,170 | ||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | ' | |||||||||||||||||||||||||||
The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans not covered under loss share agreements at September 30, 2013, and December 31, 2012, in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 28,339 | $ | 38,675 | ||||||||||||||||||||||||
Nonaccrual troubled debt restructured loans | 18,749 | 4,481 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 47,088 | $ | 43,156 | ||||||||||||||||||||||||
Accruing loans past due 90 days or more | — | — | ||||||||||||||||||||||||||
Performing troubled debt restructured loans | $ | 19,371 | $ | 21,121 | ||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | |||||||||||||||||||||||||||
The following tables provide information on troubled debt restructured loans that were modified during the three months and nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | |||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Commercial | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial and commercial real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | — | — | ||||||||||||||||||||||
Residential real estate | 1 | 65 | 65 | 1 | 87 | 87 | ||||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 1 | $ | 65 | $ | 65 | 1 | $ | 87 | $ | 87 | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | |||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | |||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||
Commercial | 3 | $ | 17,873 | $ | 17,873 | — | $ | — | $ | — | ||||||||||||||||||
Commercial real estate | — | — | — | 2 | 1,396 | 1,396 | ||||||||||||||||||||||
Total commercial and commercial real estate | 3 | 17,873 | 17,873 | 2 | 1,396 | 1,396 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 3 | 2,576 | 2,576 | 2 | 276 | 276 | ||||||||||||||||||||||
Residential real estate | 4 | 762 | 762 | 1 | 87 | 87 | ||||||||||||||||||||||
Consumer | 1 | 166 | 166 | 1 | 1,152 | 1,152 | ||||||||||||||||||||||
Total | 11 | $ | 21,377 | $ | 21,377 | 6 | $ | 2,911 | $ | 2,911 | ||||||||||||||||||
Troubled Debt Restructed Loans with Payment Default | ' | |||||||||||||||||||||||||||
The following tables provide information on troubled debt restructured loans for which there was a payment default during the three months and nine months ended September 30, 2013, and September 30, 2012, in thousands, that had been modified during the twelve-month period prior to the default: | ||||||||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||
Loans | Investment | Loans | Investment | |||||||||||||||||||||||||
Commercial | 1 | $ | 13,000 | — | $ | — | ||||||||||||||||||||||
Commercial real estate | — | — | 1 | 1,380 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 1 | 13,000 | 1 | 1,380 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | — | — | 2 | 59 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 13,000 | 3 | $ | 1,439 | ||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||
Loans | Investment | Loans | Investment | |||||||||||||||||||||||||
Commercial | 2 | $ | 17,670 | — | $ | — | ||||||||||||||||||||||
Commercial real estate | — | — | 1 | 1,380 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 2 | 17,670 | 1 | 1,380 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | 2 | 167 | 2 | 59 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 4 | $ | 17,837 | 3 | $ | 1,439 | ||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||||||||||||||||||
The following table presents loans and leases not covered by loss share agreements by credit quality indicator at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Pass | Nonpass | Total | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 695,073 | $ | 60,585 | $ | 755,658 | ||||||||||||||||||||||
Commercial real estate | 1,159,006 | 128,331 | 1,287,337 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 1,854,079 | 188,916 | 2,042,995 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 280,501 | 43,838 | 324,339 | |||||||||||||||||||||||||
Residential real estate | 253,502 | 15,999 | 269,501 | |||||||||||||||||||||||||
Consumer | 257,682 | 10,430 | 268,112 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 2,645,764 | $ | 259,183 | $ | 2,904,947 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 661,118 | $ | 51,190 | $ | 712,308 | ||||||||||||||||||||||
Commercial real estate | 1,134,784 | 154,400 | 1,289,184 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 1,795,902 | 205,590 | 2,001,492 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 286,264 | 42,047 | 328,311 | |||||||||||||||||||||||||
Residential real estate | 227,925 | 21,764 | 249,689 | |||||||||||||||||||||||||
Consumer | 235,232 | 10,446 | 245,678 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 2,545,323 | $ | 279,847 | $ | 2,825,170 | ||||||||||||||||||||||
Past Due Financing Receivables | ' | |||||||||||||||||||||||||||
The following table sets forth information regarding Heartland's accruing and nonaccrual loans and leases not covered by loss share agreements at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Accruing Loans and Leases | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Current | Nonaccrual | Total Loans and Leases | ||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | |||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 3,537 | $ | 76 | $ | — | $ | 3,613 | $ | 733,222 | $ | 18,823 | $ | 755,658 | ||||||||||||||
Commercial real estate | 2,611 | 495 | — | 3,106 | 1,270,831 | 13,400 | 1,287,337 | |||||||||||||||||||||
Total commercial and commercial real estate | 6,148 | 571 | — | 6,719 | 2,004,053 | 32,223 | 2,042,995 | |||||||||||||||||||||
Agricultural and agricultural real estate | 9,021 | 132 | — | 9,153 | 309,128 | 6,058 | 324,339 | |||||||||||||||||||||
Residential real estate | 236 | — | — | 236 | 263,620 | 5,645 | 269,501 | |||||||||||||||||||||
Consumer | 3,282 | 797 | — | 4,079 | 260,871 | 3,162 | 268,112 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 18,687 | $ | 1,500 | $ | — | $ | 20,187 | $ | 2,837,672 | $ | 47,088 | $ | 2,904,947 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Commercial | $ | 1,143 | $ | 525 | $ | — | $ | 1,668 | $ | 708,459 | $ | 2,181 | $ | 712,308 | ||||||||||||||
Commercial real estate | 1,631 | 494 | — | 2,125 | 1,259,112 | 27,947 | 1,289,184 | |||||||||||||||||||||
Total commercial and commercial real estate | 2,774 | 1,019 | — | 3,793 | 1,967,571 | 30,128 | 2,001,492 | |||||||||||||||||||||
Agricultural and agricultural real estate | 687 | — | — | 687 | 324,545 | 3,079 | 328,311 | |||||||||||||||||||||
Residential real estate | 1,278 | 234 | — | 1,512 | 241,860 | 6,317 | 249,689 | |||||||||||||||||||||
Consumer | 2,434 | 803 | — | 3,237 | 238,809 | 3,632 | 245,678 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 7,173 | $ | 2,056 | $ | — | $ | 9,229 | $ | 2,772,785 | $ | 43,156 | $ | 2,825,170 | ||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||||||||||||
The following tables present, for impaired loans not covered by loss share agreements and by category of loan, the unpaid contractual balance at September 30, 2013, and December 31, 2012; the outstanding loan balance recorded on the consolidated balance sheets at September 30, 2013, and December 31, 2012; any related allowance recorded for those loans as of September 30, 2013, and December 31, 2012; the average outstanding loan balance recorded on the consolidated balance sheets during the three months and nine months ended September 30, 2013, and year ended December 31, 2012; and the interest income recognized on the impaired loans during the three months and nine months ended September 30, 2013, and year ended December 31, 2012, in thousands: | ||||||||||||||||||||||||||||
Unpaid | Loan | Related | Quarter-to- | Quarter-to- | Year-to- | Year-to- | ||||||||||||||||||||||
Contractual | Balance | Allowance | Date | Date | Date | Date | ||||||||||||||||||||||
Balance | Recorded | Avg. Loan | Interest | Avg. | Interest | |||||||||||||||||||||||
Balance | Income | Loan | Income | |||||||||||||||||||||||||
Recognized | Balance | Recognized | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 15,026 | $ | 15,026 | $ | 3,178 | $ | 5,892 | $ | 21 | $ | 3,560 | $ | 51 | ||||||||||||||
Commercial real estate | 7,223 | 7,027 | 838 | 8,494 | 81 | 7,625 | 250 | |||||||||||||||||||||
Total commercial and commercial real estate | 22,249 | 22,053 | 4,016 | 14,386 | 102 | 11,185 | 301 | |||||||||||||||||||||
Agricultural and agricultural real estate | 7,363 | 7,363 | 619 | 12,965 | 22 | 6,885 | 65 | |||||||||||||||||||||
Residential real estate | 2,746 | 2,736 | 678 | 3,187 | 3 | 3,330 | 13 | |||||||||||||||||||||
Consumer | 3,706 | 3,706 | 1,828 | 3,591 | 32 | 3,483 | 82 | |||||||||||||||||||||
Total loans held to maturity | $ | 36,064 | $ | 35,858 | $ | 7,141 | $ | 34,129 | $ | 159 | $ | 24,883 | $ | 461 | ||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,512 | $ | 6,670 | $ | — | $ | 14,980 | $ | 44 | $ | 10,242 | $ | 56 | ||||||||||||||
Commercial real estate | 26,390 | 20,991 | — | 19,507 | 171 | 26,630 | 284 | |||||||||||||||||||||
Total commercial and commercial real estate | 33,902 | 27,661 | — | 34,487 | 215 | 36,872 | 340 | |||||||||||||||||||||
Agricultural and agricultural real estate | 11,886 | 11,886 | — | 6,691 | 125 | 10,828 | 370 | |||||||||||||||||||||
Residential real estate | 4,782 | 4,250 | — | 4,463 | 23 | 4,102 | 62 | |||||||||||||||||||||
Consumer | 1,494 | 1,479 | — | 1,501 | 9 | 1,505 | 24 | |||||||||||||||||||||
Total loans held to maturity | $ | 52,064 | $ | 45,276 | $ | — | $ | 47,142 | $ | 372 | $ | 53,307 | $ | 796 | ||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 22,538 | $ | 21,696 | $ | 3,178 | $ | 20,872 | $ | 65 | $ | 13,802 | $ | 107 | ||||||||||||||
Commercial real estate | 33,613 | 28,018 | 838 | 28,001 | 252 | 34,255 | 534 | |||||||||||||||||||||
Total commercial and commercial real estate | 56,151 | 49,714 | 4,016 | 48,873 | 317 | 48,057 | 641 | |||||||||||||||||||||
Agricultural and agricultural real estate | 19,249 | 19,249 | 619 | 19,656 | 147 | 17,713 | 435 | |||||||||||||||||||||
Residential real estate | 7,528 | 6,986 | 678 | 7,650 | 26 | 7,432 | 75 | |||||||||||||||||||||
Consumer | 5,200 | 5,185 | 1,828 | 5,092 | 41 | 4,988 | 106 | |||||||||||||||||||||
Total impaired loans held to maturity | $ | 88,128 | $ | 81,134 | $ | 7,141 | $ | 81,271 | $ | 531 | $ | 78,190 | $ | 1,257 | ||||||||||||||
Unpaid | Loan | Related | Year-to- | Year-to- | ||||||||||||||||||||||||
Contractual | Balance | Allowance | Date | Date | ||||||||||||||||||||||||
Balance | Recorded | Avg. | Interest | |||||||||||||||||||||||||
Loan | Income | |||||||||||||||||||||||||||
Balance | Recognized | |||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 2,904 | $ | 2,904 | $ | 1,350 | $ | 5,082 | $ | 88 | ||||||||||||||||||
Commercial real estate | 6,403 | 6,384 | 1,112 | 12,671 | 813 | |||||||||||||||||||||||
Total commercial and commercial real estate | 9,307 | 9,288 | 2,462 | 17,753 | 901 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 1,493 | 1,493 | 109 | 379 | 83 | |||||||||||||||||||||||
Residential real estate | 3,197 | 3,170 | 783 | 2,737 | 89 | |||||||||||||||||||||||
Consumer | 3,876 | 3,836 | 1,270 | 3,781 | 204 | |||||||||||||||||||||||
Total loans held to maturity | $ | 17,873 | $ | 17,787 | $ | 4,624 | $ | 24,650 | $ | 1,277 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 6,596 | $ | 6,127 | $ | — | $ | 3,813 | $ | 186 | ||||||||||||||||||
Commercial real estate | 48,967 | 39,199 | — | 41,814 | 689 | |||||||||||||||||||||||
Total commercial and commercial real estate | 55,563 | 45,326 | — | 45,627 | 875 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 14,654 | 14,635 | — | 13,728 | 539 | |||||||||||||||||||||||
Residential real estate | 4,741 | 4,273 | — | 3,861 | 65 | |||||||||||||||||||||||
Consumer | 1,708 | 1,555 | — | 1,630 | 18 | |||||||||||||||||||||||
Total loans held to maturity | $ | 76,666 | $ | 65,789 | $ | — | $ | 64,846 | $ | 1,497 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 9,500 | $ | 9,031 | $ | 1,350 | $ | 8,895 | $ | 274 | ||||||||||||||||||
Commercial real estate | 55,370 | 45,583 | 1,112 | 54,485 | 1,502 | |||||||||||||||||||||||
Total commercial and commercial real estate | 64,870 | 54,614 | 2,462 | 63,380 | 1,776 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 16,147 | 16,128 | 109 | 14,107 | 622 | |||||||||||||||||||||||
Residential real estate | 7,938 | 7,443 | 783 | 6,598 | 154 | |||||||||||||||||||||||
Consumer | 5,584 | 5,391 | 1,270 | 5,411 | 222 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 94,539 | $ | 83,576 | $ | 4,624 | $ | 89,496 | $ | 2,774 | ||||||||||||||||||
Impaired Financing Receivables | ' | |||||||||||||||||||||||||||
The carrying amount of the loans covered by these loss share agreements at September 30, 2013, and December 31, 2012, consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Impaired | Non | Total | Impaired | Non | Total | |||||||||||||||||||||||
Purchased | Impaired | Covered | Purchased | Impaired | Covered | |||||||||||||||||||||||
Loans | Purchased | Loans | Loans | Purchased | Loans | |||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||||||
Commercial and commercial real estate | $ | 530 | $ | 1,872 | $ | 2,402 | $ | 598 | $ | 2,476 | $ | 3,074 | ||||||||||||||||
Agricultural and agricultural real estate | — | 446 | 446 | — | 748 | 748 | ||||||||||||||||||||||
Residential real estate | — | 2,433 | 2,433 | — | 2,645 | 2,645 | ||||||||||||||||||||||
Consumer loans | 500 | 95 | 595 | 89 | 697 | 786 | ||||||||||||||||||||||
Total Covered Loans | $ | 1,030 | $ | 4,846 | $ | 5,876 | $ | 687 | $ | 6,566 | $ | 7,253 | ||||||||||||||||
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||||||
Changes in the allowance for loan and lease losses for the three months and nine months ended September 30, 2013, and September 30, 2012, were as follows, in thousands: | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 9,436 | $ | 13,671 | $ | 3,055 | $ | 3,580 | $ | 7,881 | $ | — | $ | — | $ | 37,623 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||||||
Charge-offs | (163 | ) | (630 | ) | — | (450 | ) | (1,270 | ) | — | — | (2,513 | ) | ||||||||||||||||||||
Recoveries | 78 | 514 | 1 | 76 | 383 | — | — | 1,052 | |||||||||||||||||||||||||
Provision | 3,745 | 488 | (240 | ) | 331 | 825 | — | — | 5,149 | ||||||||||||||||||||||||
Balance at | $ | 13,096 | $ | 14,043 | $ | 2,816 | $ | 3,537 | $ | 7,819 | $ | — | $ | — | $ | 41,311 | |||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 11,388 | $ | 14,473 | $ | 2,138 | $ | 3,543 | $ | 7,173 | $ | — | $ | — | $ | 38,715 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Charge-offs | (1,422 | ) | (2,561 | ) | (23 | ) | (856 | ) | (3,488 | ) | — | — | (8,350 | ) | |||||||||||||||||||
Recoveries | 983 | 1,279 | 100 | 102 | 834 | — | — | 3,298 | |||||||||||||||||||||||||
Provision | 2,147 | 852 | 601 | 748 | 3,300 | — | — | 7,648 | |||||||||||||||||||||||||
Balance at | $ | 13,096 | $ | 14,043 | $ | 2,816 | $ | 3,537 | $ | 7,819 | $ | — | $ | — | $ | 41,311 | |||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 10,287 | $ | 17,057 | $ | 2,002 | $ | 3,899 | $ | 8,193 | $ | 1 | $ | — | $ | 41,439 | |||||||||||||||||
30-Jun-12 | |||||||||||||||||||||||||||||||||
Charge-offs | (107 | ) | (1,668 | ) | (1 | ) | (100 | ) | (1,174 | ) | — | — | (3,050 | ) | |||||||||||||||||||
Recoveries | 1,550 | 717 | 1 | 95 | 151 | — | — | 2,514 | |||||||||||||||||||||||||
Provision | (462 | ) | (806 | ) | 55 | (26 | ) | 738 | (1 | ) | — | (502 | ) | ||||||||||||||||||||
Balance at | $ | 11,268 | $ | 15,300 | $ | 2,057 | $ | 3,868 | $ | 7,908 | $ | — | $ | — | $ | 40,401 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Balance at | $ | 10,547 | $ | 14,621 | $ | 1,763 | $ | 3,001 | $ | 6,874 | $ | 2 | $ | — | $ | 36,808 | |||||||||||||||||
31-Dec-11 | |||||||||||||||||||||||||||||||||
Charge-offs | (814 | ) | (2,762 | ) | (1 | ) | (376 | ) | (2,959 | ) | — | — | (6,912 | ) | |||||||||||||||||||
Recoveries | 1,799 | 2,996 | 82 | 161 | 615 | — | — | 5,653 | |||||||||||||||||||||||||
Provision | (264 | ) | 445 | 213 | 1,082 | 3,378 | (2 | ) | — | 4,852 | |||||||||||||||||||||||
Balance at | $ | 11,268 | $ | 15,300 | $ | 2,057 | $ | 3,868 | $ | 7,908 | $ | — | $ | — | $ | 40,401 | |||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||||||
Goodwill_Core_Deposit_Premium_1
Goodwill, Core Deposit Premium and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||||||||||
The gross carrying amount of other intangible assets and the associated accumulated amortization at September 30, 2013, and December 31, 2012, are presented in the table below, in thousands: | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||
Core deposit intangibles | $ | 11,668 | $ | 9,887 | $ | 1,781 | $ | 11,668 | $ | 9,327 | $ | 2,341 | ||||||||||||
Mortgage servicing rights | 31,095 | 9,899 | 21,196 | 22,892 | 7,239 | 15,653 | ||||||||||||||||||
Customer relationship intangible | 1,177 | 719 | 458 | 1,177 | 685 | 492 | ||||||||||||||||||
Total | $ | 43,940 | $ | 20,505 | $ | 23,435 | $ | 35,737 | $ | 17,251 | $ | 18,486 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||||||
The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: | ||||||||||||||||||||||||
Core | Mortgage | Customer | ||||||||||||||||||||||
Deposit | Servicing | Relationship | ||||||||||||||||||||||
Intangibles | Rights | Intangible | Total | |||||||||||||||||||||
Three months ending December 31, 2013 | $ | 181 | $ | 1,575 | $ | 11 | $ | 1,767 | ||||||||||||||||
Year ending December 31, | ||||||||||||||||||||||||
2014 | 468 | 6,540 | 43 | 7,051 | ||||||||||||||||||||
2015 | 267 | 5,232 | 42 | 5,541 | ||||||||||||||||||||
2016 | 238 | 3,924 | 41 | 4,203 | ||||||||||||||||||||
2017 | 212 | 2,616 | 40 | 2,868 | ||||||||||||||||||||
2018 | 187 | 1,309 | 39 | 1,535 | ||||||||||||||||||||
Thereafter | 228 | — | 242 | 470 | ||||||||||||||||||||
Schedule of Servicing Assets at Fair Value | ' | |||||||||||||||||||||||
The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Balance at January 1 | $ | 15,653 | $ | 11,276 | ||||||||||||||||||||
Originations | 10,595 | 7,916 | ||||||||||||||||||||||
Amortization | (5,548 | ) | (4,727 | ) | ||||||||||||||||||||
Valuation adjustment | 496 | (674 | ) | |||||||||||||||||||||
Balance at September 30 | $ | 21,196 | $ | 13,791 | ||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||||||
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||
Notional | Fair | Balance | Receive | Weighted | Maturity | |||||||||||||
Amount | Value | Sheet | Rate | Average | ||||||||||||||
Category | Pay Rate | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate swap | $ | 12,046 | $ | (509 | ) | Other Liabilities | 2.93 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (289 | ) | Other Liabilities | 0.254 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (1,637 | ) | Other Liabilities | 0.26 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,905 | ) | Other Liabilities | 0.271 | % | 3.355 | % | 1/7/20 | |||||||||
December 31, 2012 | ||||||||||||||||||
Interest rate swap | $ | 13,002 | $ | (711 | ) | Other Liabilities | 2.961 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (708 | ) | Other Liabilities | 0.308 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (2,186 | ) | Other Liabilities | 0.311 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (3,020 | ) | Other Liabilities | 0.351 | % | 3.355 | % | 1/7/20 | |||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||
The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||
Recognized in OCI | Reclassified from AOCI into Income | Recognized in Income on Derivatives | ||||||||||||||||
Amount of Gain (Loss) | Category | Amount of Gain (Loss) | Category | Amount of Gain (Loss) | ||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate swap | $ | 203 | Interest Expense | $ | (210 | ) | Other Income | $ | — | |||||||||
Interest rate swap | 419 | Interest Expense | (436 | ) | Other Income | — | ||||||||||||
Interest rate swap | 548 | Interest Expense | (446 | ) | Other Income | — | ||||||||||||
Interest rate swap | 1,115 | Interest Expense | (460 | ) | Other Income | — | ||||||||||||
September 30, 2012 | ||||||||||||||||||
Interest rate swap | $ | (58 | ) | Interest Expense | $ | (226 | ) | Other Income | $ | — | ||||||||
Interest rate swap | 189 | Interest Expense | (397 | ) | Other Income | — | ||||||||||||
Interest rate swap | (262 | ) | Interest Expense | (421 | ) | Other Income | — | |||||||||||
Interest rate swap | (606 | ) | Interest Expense | (442 | ) | Other Income | — | |||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | |||||||||||||||||
The table below identifies the balance sheet category and fair values of Heartland's derivative instruments not designated as hedging instruments at September 30, 2013, and December 31, 2012, in thousands: | ||||||||||||||||||
Balance Sheet Category | Notional | Fair | ||||||||||||||||
Amount | Value | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Other Assets | $ | 104,098 | $ | 4,601 | |||||||||||||
Forward commitments | Other Assets | 69,100 | 1,271 | |||||||||||||||
Forward commitments | Other Liabilities | 185,942 | (3,320 | ) | ||||||||||||||
December 31, 2012 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Other Assets | $ | 267,397 | $ | 9,353 | |||||||||||||
Forward commitments | Other Assets | 168,910 | 462 | |||||||||||||||
Forward commitments | Other Liabilities | 351,996 | (1,221 | ) | ||||||||||||||
The table below identifies the income statement category of the gains and losses recognized in income on Heartland's derivative instruments not designated as hedging instruments for the nine months ended September 30, 2013, and September 30, 2012, in thousands: | ||||||||||||||||||
Income Statement Category | Year-to-Date | |||||||||||||||||
Gain (Loss) Recognized | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on sale of loans held for sale | $ | (6,047 | ) | ||||||||||||||
Forward commitments | Gains on sale of loans held for sale | (1,289 | ) | |||||||||||||||
September 30, 2012 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on sale of loans held for sale | $ | 12,759 | |||||||||||||||
Forward commitments | Gains on sale of loans held for sale | (3,870 | ) |
Fair_Value_Assets_and_liabilit
Fair Value (Assets and liabilities, fair value, recurring basis) (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||
The table below presents Heartland's assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013, and December 31, 2012, in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: | ||||||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Trading securities | $ | 1,219 | $ | 1,219 | $ | — | $ | — | ||||||||||||
Securities available for sale | 1,391,610 | 8,028 | 1,378,625 | 4,957 | ||||||||||||||||
Derivative assets | 5,872 | — | 5,872 | — | ||||||||||||||||
Total assets at fair value | $ | 1,398,701 | $ | 9,247 | $ | 1,384,497 | $ | 4,957 | ||||||||||||
Derivative liabilities | $ | 7,660 | $ | — | $ | 7,660 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 7,660 | $ | — | $ | 7,660 | $ | — | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Trading securities | $ | 380 | $ | 380 | $ | — | $ | — | ||||||||||||
Securities available for sale | 1,506,075 | 12,811 | 1,488,924 | 4,340 | ||||||||||||||||
Derivative assets | 9,815 | — | 9,815 | — | ||||||||||||||||
Total assets at fair value | $ | 1,516,270 | $ | 13,191 | $ | 1,498,739 | $ | 4,340 | ||||||||||||
Derivative liabilities | $ | 7,846 | $ | — | $ | 7,846 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 7,846 | $ | — | $ | 7,846 | $ | — | ||||||||||||
Fair Value Measurements, Nonrecurring | ' | |||||||||||||||||||
The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: | ||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 12,455 | $ | — | $ | — | $ | 12,455 | $ | 472 | ||||||||||
Commercial real estate | 8,004 | — | — | 8,004 | 1,374 | |||||||||||||||
Agricultural and agricultural real estate | 6,749 | — | — | 6,749 | — | |||||||||||||||
Residential real estate | 3,284 | — | — | 3,284 | — | |||||||||||||||
Consumer | 1,936 | — | — | 1,936 | 14 | |||||||||||||||
Total collateral dependent impaired loans | $ | 32,428 | $ | — | $ | — | $ | 32,428 | $ | 1,860 | ||||||||||
Other real estate owned | $ | 33,018 | $ | — | $ | — | $ | 33,018 | $ | 2,440 | ||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Collateral dependent impaired loans | ||||||||||||||||||||
Commercial | $ | 7,681 | $ | — | $ | — | $ | 7,681 | $ | 1,799 | ||||||||||
Commercial real estate | 44,471 | — | — | 44,471 | 6,898 | |||||||||||||||
Agricultural and agricultural real estate | 16,019 | — | — | 16,019 | 1 | |||||||||||||||
Residential real estate | 6,660 | — | — | 6,660 | 988 | |||||||||||||||
Consumer | 4,121 | — | — | 4,121 | 4,818 | |||||||||||||||
Total collateral dependent impaired loans | $ | 78,952 | $ | — | $ | — | $ | 78,952 | $ | 14,504 | ||||||||||
Other real estate owned | $ | 35,822 | $ | — | $ | — | $ | 35,822 | $ | 6,953 | ||||||||||
Mortgage servicing rights | $ | 15,956 | $ | — | $ | — | $ | 15,956 | $ | 477 | ||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ' | |||||||||||||||||||
The following tables present additional quantitative information about assets measured at fair value and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: | ||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 9/30/13 | Technique | Input | (Weighted Average) | |||||||||||||||||
z-TRANCHE Securities | $ | 4,957 | Discounted cash flows | Pretax discount rate | 7.00 - 9.00% | |||||||||||||||
Actual defaults | 12.71-20.14% (15.52%) | |||||||||||||||||||
Actual deferrals | 6.25-22.35% (11.32%) | |||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 12,455 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Commercial real estate | 8,004 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Agricultural and agricultural real estate | 6,749 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Residential real estate | 3,284 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Consumer | 1,936 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Other real estate owned | 33,018 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | ||||||||||||||||||||
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. | ||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/12 | Technique | Input | (Weighted Average) | |||||||||||||||||
z-TRANCHE Securities | $ | 4,340 | Discounted cash flows | Pretax discount rate | 8.00 - 10.00% | |||||||||||||||
Actual defaults | 13.94-20.94% (15.52%) | |||||||||||||||||||
Actual deferrals | 6.30-23.71% (11.32%) | |||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 7,681 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Commercial real estate | 44,471 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Agricultural and agricultural real estate | 16,019 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Residential real estate | 6,660 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Consumer | 4,121 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | NM* | |||||||||||||||||||
Other real estate owned | 35,822 | Modified appraised value | Third party appraisal | NM* | ||||||||||||||||
Appraisal discount | ||||||||||||||||||||
Mortgage servicing rights | 15,956 | Discounted cash flows | Prepayment speeds, servicing costs and escrow analysis | Average CPR Life | ||||||||||||||||
12.99 - 18.71% | ||||||||||||||||||||
-18.05% | ||||||||||||||||||||
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | |||||||||||||||||||
The changes in fair value of Level 3 assets that are measured on a recurring basis are summarized in the following table, in thousands: | ||||||||||||||||||||
For the Nine Months Ended | For the Year Ended | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Balance at January 1, | $ | 4,340 | $ | 3,243 | ||||||||||||||||
Total gains (losses): | ||||||||||||||||||||
Included in earnings | 642 | — | ||||||||||||||||||
Included in other comprehensive income | 794 | 938 | ||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||
Purchases | — | 195 | ||||||||||||||||||
Sales | (651 | ) | — | |||||||||||||||||
Settlements | (168 | ) | (36 | ) | ||||||||||||||||
Balance at period end | $ | 4,957 | $ | 4,340 | ||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||||||
The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of Heartland to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Carrying | Estimated | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Amount | Fair | Active Markets for | Observable | Unobservable | ||||||||||||||||
Value | Identical Assets | Inputs | Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 165,008 | $ | 165,008 | $ | 165,008 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | 3,605 | 3,605 | 3,605 | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | 1,219 | 1,219 | 1,219 | — | — | |||||||||||||||
Available for sale | 1,391,610 | 1,391,610 | 8,028 | 1,378,625 | 4,957 | |||||||||||||||
Held to maturity | 53,841 | 53,893 | — | 53,893 | — | |||||||||||||||
Total securities | 1,446,670 | 1,446,722 | 9,247 | 1,432,518 | 4,957 | |||||||||||||||
Loans held for sale | 61,326 | 61,640 | — | 61,640 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 741,728 | 735,522 | — | 723,067 | 12,455 | |||||||||||||||
Commercial real estate | 1,274,043 | 1,276,194 | — | 1,268,190 | 8,004 | |||||||||||||||
Agricultural and agricultural real estate | 322,502 | 323,236 | — | 316,487 | 6,749 | |||||||||||||||
Residential real estate | 267,341 | 259,334 | — | 256,050 | 3,284 | |||||||||||||||
Consumer | 260,657 | 263,888 | — | 261,952 | 1,936 | |||||||||||||||
Total Loans, net | 2,866,271 | 2,858,174 | — | 2,825,746 | 32,428 | |||||||||||||||
Derivatives | 5,872 | 5,872 | — | 5,872 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,073,688 | 1,073,688 | — | 1,073,688 | — | |||||||||||||||
Savings deposits | 2,043,397 | 2,043,397 | — | 2,043,397 | — | |||||||||||||||
Time deposits | 807,913 | 807,913 | — | 807,913 | — | |||||||||||||||
Short term borrowings | 224,048 | 224,048 | — | 224,048 | — | |||||||||||||||
Other borrowings | 322,538 | 321,074 | — | 321,074 | — | |||||||||||||||
Derivatives | 7,660 | 7,660 | — | 7,660 | — | |||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Carrying | Estimated | Quoted Prices in | Significant Other | Significant | ||||||||||||||||
Amount | Fair | Active Markets for | Observable | Unobservable | ||||||||||||||||
Value | Identical Assets | Inputs | Inputs | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 168,054 | $ | 168,054 | $ | 168,054 | $ | — | $ | — | ||||||||||
Securities: | ||||||||||||||||||||
Trading | 380 | 380 | 380 | — | — | |||||||||||||||
Available for sale | 1,506,075 | 1,506,075 | 12,811 | 1,488,924 | 4,340 | |||||||||||||||
Held to maturity | 55,502 | 55,982 | — | 55,982 | — | |||||||||||||||
Total securities | 1,561,957 | 1,562,437 | 13,191 | 1,544,906 | 4,340 | |||||||||||||||
Loans held for sale | 96,165 | 96,165 | — | 96,165 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 700,225 | 691,605 | — | 683,924 | 7,681 | |||||||||||||||
Commercial real estate | 1,275,770 | 1,281,031 | — | 1,236,560 | 44,471 | |||||||||||||||
Agricultural and agricultural real estate | 326,867 | 329,443 | — | 313,424 | 16,019 | |||||||||||||||
Residential real estate | 248,608 | 237,050 | — | 230,390 | 6,660 | |||||||||||||||
Consumer | 238,617 | 241,978 | — | 237,857 | 4,121 | |||||||||||||||
Total Loans, net | 2,790,087 | 2,781,107 | — | 2,702,155 | 78,952 | |||||||||||||||
Mortgage derivatives | 9,815 | 9,815 | — | 9,815 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 974,232 | 974,232 | — | 974,232 | — | |||||||||||||||
Savings deposits | 2,004,438 | 2,004,438 | — | 2,004,438 | — | |||||||||||||||
Time deposits | 866,990 | 866,990 | — | 866,990 | — | |||||||||||||||
Short term borrowings | 224,626 | 224,626 | — | 224,626 | — | |||||||||||||||
Other borrowings | 389,025 | 376,422 | — | 376,422 | — | |||||||||||||||
Derivatives | 7,846 | 7,846 | — | 7,846 | — | |||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Mortgage Banking [Abstract] | ' | |||||||||||||||||||||||
Schedule of Segment Reporting | ' | |||||||||||||||||||||||
The following tables present financial information from Heartland's operating segments for the three-month and nine-month periods ended September 30, 2013, and 2012, in thousands. | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Community | Retail | Total | Community | Retail | Total | |||||||||||||||||||
and Other | Mortgage | and Other | Mortgage | |||||||||||||||||||||
Banking | Banking | Banking | Banking | |||||||||||||||||||||
Net interest income | $ | 39,291 | $ | 589 | $ | 39,880 | $ | 36,412 | $ | 400 | $ | 36,812 | ||||||||||||
Provision for loan losses | 5,149 | — | 5,149 | (502 | ) | — | (502 | ) | ||||||||||||||||
Total noninterest income | 12,309 | 8,409 | 20,718 | 13,988 | 15,778 | 29,766 | ||||||||||||||||||
Total noninterest expense | 36,813 | 10,334 | 47,147 | 35,597 | 11,562 | 47,159 | ||||||||||||||||||
Income (loss) before taxes | $ | 9,638 | $ | (1,336 | ) | $ | 8,302 | $ | 15,305 | $ | 4,616 | $ | 19,921 | |||||||||||
Segment Assets | $ | 4,825,781 | $ | 86,949 | $ | 4,912,730 | $ | 4,467,574 | $ | 125,623 | $ | 4,593,197 | ||||||||||||
Average Loans | $ | 2,867,933 | $ | 69,575 | $ | 2,937,508 | $ | 2,628,811 | $ | 98,995 | $ | 2,727,806 | ||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Community | Retail | Total | Community | Retail | Total | |||||||||||||||||||
and Other | Mortgage | and Other | Mortgage | |||||||||||||||||||||
Banking | Banking | Banking | Banking | |||||||||||||||||||||
Net interest income | $ | 115,968 | $ | 1,503 | $ | 117,471 | $ | 110,332 | $ | 1,850 | $ | 112,182 | ||||||||||||
Provision for loan losses | 7,648 | — | 7,648 | 4,852 | — | 4,852 | ||||||||||||||||||
Total noninterest income | 37,630 | 34,414 | 72,044 | 40,902 | 40,530 | 81,432 | ||||||||||||||||||
Total noninterest expense | 108,877 | 33,783 | 142,660 | 99,902 | 28,856 | 128,758 | ||||||||||||||||||
Income (loss) before taxes | $ | 37,073 | $ | 2,134 | $ | 39,207 | $ | 46,480 | $ | 13,524 | $ | 60,004 | ||||||||||||
Segment Assets | $ | 4,825,781 | $ | 86,949 | $ | 4,912,730 | $ | 4,467,574 | $ | 125,623 | $ | 4,593,197 | ||||||||||||
Average Loans | $ | 2,820,418 | $ | 86,552 | $ | 2,906,970 | $ | 2,570,493 | $ | 90,063 | $ | 2,660,556 | ||||||||||||
Basis_of_Presentation_Earnings
Basis of Presentation (Earnings per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share | ' | ' | ' | ' |
Net income attributable to Heartland | $6,810 | $13,587 | $28,854 | $40,385 |
Preferred dividends and discount | -276 | -949 | -889 | -2,991 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $6,534 | $12,638 | $27,965 | $37,394 |
Weighted average common shares outstanding for basic earnings per share | 16,936 | 16,474 | 16,904 | 16,484 |
Assumed incremental common shares issued for common stock equivalents | 285 | 272 | 279 | 246 |
Weighted average common shares for diluted earnings per share | 17,221 | 16,746 | 17,183 | 16,730 |
Earnings per common share b basic (in dollars per share) | $0.39 | $0.77 | $1.65 | $2.27 |
Earnings per common share b diluted (in dollars per share) | $0.38 | $0.75 | $1.63 | $2.24 |
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 105 | 446 | 105 | 446 |
Basis_of_Presentation_StockBas
Basis of Presentation (Stock-Based Compensation) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jan. 22, 2013 | Jan. 17, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 22, 2013 | Jan. 17, 2012 | Dec. 31, 2008 | Dec. 31, 2008 | Dec. 31, 2008 | Dec. 31, 2008 | |
Long-Term Incentive Plan 2012 | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Performance-Based Restricted Stock Units | Performance-Based Restricted Stock Units | Stock Option | Period One | Period Two | Period Three | |||
Long-Term Incentive Plan 2005 | Long-Term Incentive Plan 2005 | Long-Term Incentive Plan 2005 | Long-Term Incentive Plan 2005 | Long-Term Incentive Plan 2005 | Long-Term Incentive Plan 2005 | Stock Option | Stock Option | Stock Option | |||||
equal_installments | Grants Made in 2012 | ||||||||||||
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares for issuance under future awards | ' | ' | 450,796 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options, granted (in shares) | ' | ' | ' | 72,595 | 94,001 | ' | ' | 40,990 | 49,801 | ' | ' | ' | ' |
Share-based compensation, award vesting periods | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | '4 years | '5 years |
Award vesting, number of equal installments | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Award, employee age threshold | ' | ' | ' | ' | ' | '62 years | ' | ' | ' | ' | ' | ' | ' |
Years of service required to vest after retirement | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Typical options expiration period after date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Share-based compensation, award service periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at January 1 (in shares) | 377,907 | 570,762 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Granted (in shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Exercised (in shares) | -68,586 | -112,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Forfeited (in shares) | -1,800 | -12,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at September 30 (in shares) | 307,521 | 445,729 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at September 30 (in shares) | 307,521 | 399,846 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding at January 1 (in dollars per share) | $22.62 | $21.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Granted (in dollars per share) | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Exercised (in dollars per share) | $19.54 | $17.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Forfeited (in dollars per share) | $26.68 | $23.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding at September 30 (in dollars per share) | $23.28 | $22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Options exercisable at September 30 (in dollars per share) | $23.28 | $22.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested options, weighted average remaining contractual life | '2 years 11 months 26 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value for vested options | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value for the total of all options exercised | 571,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum exercise period | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from options exercised | 1,300,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from options exercised | 68,000 | 174,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation costs | 1,500,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based unrecognized compensation costs | $3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Oct. 18, 2013 |
Morrill & Janes Bank and Trust Company | Subsequent Event [Member] | ||||
Morrill & Janes Bank and Trust Company | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Assets | $4,912,730,000 | $4,990,553,000 | $4,593,197,000 | $790,000,000 | ' |
Loans and leases receivable, net | 2,866,271,000 | 2,790,087,000 | ' | 385,000,000 | ' |
Consideration transferred | ' | ' | ' | ' | 55,400,000 |
Purchase price paid in cash | ' | ' | ' | ' | 16,600,000 |
Purchase price paid in cash, percentage | ' | ' | ' | ' | 30.00% |
Purchase price paid by delivery of shares of common stock | ' | ' | ' | ' | $38,800,000 |
Purchase price paid by delivery of shares of common stock, percentage | ' | ' | ' | ' | 70.00% |
Business acquisition, number of shares issued | ' | ' | ' | ' | 1,402,431 |
Securities_Securities_availabl
Securities (Securities available for sale) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $1,409,106 | $1,472,565 |
Gross Unrealized Gains | 18,616 | 43,738 |
Gross Unrealized Losses | -36,112 | -10,228 |
Estimated Fair Value | 1,391,610 | 1,506,075 |
Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,387,569 | 1,451,313 |
Gross Unrealized Gains | 18,553 | 43,005 |
Gross Unrealized Losses | -36,112 | -10,228 |
Estimated Fair Value | 1,370,010 | 1,484,090 |
U.S. Government Corporations and Agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 7,836 | 21,002 |
Gross Unrealized Gains | 192 | 443 |
Gross Unrealized Losses | 0 | -1 |
Estimated Fair Value | 8,028 | 21,444 |
Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 942,819 | 1,027,234 |
Gross Unrealized Gains | 9,778 | 19,002 |
Gross Unrealized Losses | -19,450 | -10,035 |
Estimated Fair Value | 933,147 | 1,036,201 |
Obligations of States and Political Subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 436,914 | 403,077 |
Gross Unrealized Gains | 8,583 | 23,560 |
Gross Unrealized Losses | -16,662 | -192 |
Estimated Fair Value | 428,835 | 426,445 |
Equity Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 21,537 | 21,252 |
Gross Unrealized Gains | 63 | 733 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $21,600 | $21,985 |
Securities_Held_to_maturity_se
Securities (Held to maturity securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | $53,841 | $55,502 |
Gross Unrealized Gains | 290 | 492 |
Gross Unrealized Losses | -238 | -12 |
Estimated Fair Value | 53,893 | 55,982 |
Mortgage-Backed Securities | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 6,045 | 7,040 |
Gross Unrealized Gains | 290 | 492 |
Gross Unrealized Losses | -238 | -12 |
Estimated Fair Value | 6,097 | 7,520 |
Obligations of States and Political Subdivisions | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 47,796 | 48,462 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $47,796 | $48,462 |
Securities_Securities_availabl1
Securities (Securities available for sale (debt maturities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in 1 year or less | $7,737 | ' |
Due in 1 to 5 years | 38,189 | ' |
Due in 5 to 10 years | 47,239 | ' |
Due after 10 years | 351,585 | ' |
Total debt securities | 444,750 | ' |
Mortgage-backed securities | 942,819 | ' |
Equity securities | 21,537 | ' |
Total investment securities | 1,409,106 | 1,472,565 |
Estimated Fair Value | ' | ' |
Due in 1 year or less | 7,808 | ' |
Due in 1 to 5 years | 39,952 | ' |
Due in 5 to 10 years | 48,207 | ' |
Due after 10 years | 340,896 | ' |
Total debt securities | 436,863 | ' |
Mortgage-backed securities | 933,147 | ' |
Equity securities | 21,600 | ' |
Estimated Fair Value | $1,391,610 | $1,506,075 |
Securities_Securities_held_to_
Securities (Securities held to maturity (debt maturities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in 1 year or less | $0 | ' |
Due in 1 to 5 years | 1,281 | ' |
Due in 5 to 10 years | 10,200 | ' |
Due after 10 years | 36,315 | ' |
Total debt securities | 47,796 | ' |
Mortgage-backed securities | 6,045 | ' |
Total investment securities | 53,841 | 55,502 |
Estimated Fair Value | ' | ' |
Due in 1 year or less | 0 | ' |
Due in 1 to 5 years | 1,281 | ' |
Due in 5 to 10 years | 10,200 | ' |
Due after 10 years | 36,315 | ' |
Total debt securities | 47,796 | ' |
Mortgage-backed securities | 6,097 | ' |
Estimated Fair Value | $53,893 | $55,982 |
Securities_Realized_gain_loss_
Securities (Realized gain (loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales | $130,031 | $147,199 | $347,170 | $488,350 |
Gross security gains | 1,420 | 5,212 | 7,703 | 14,592 |
Gross security losses | $302 | $0 | $1,091 | $486 |
Securities_Available_for_sale_
Securities (Available for sale securities losses) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | $934,698 | $356,862 |
Less than 12 months, Unrealized Losses | -35,191 | -9,314 |
12 months or longer, Fair Value | 30,886 | 24,489 |
12 months or longer, Unrealized Losses | -921 | -914 |
Total, Fair Value | 965,584 | 381,351 |
Total, Unrealized Losses | -36,112 | -10,228 |
U.S. Government Corporations and Agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 0 | 1,517 |
Less than 12 months, Unrealized Losses | 0 | -1 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 1,517 |
Total, Unrealized Losses | 0 | -1 |
Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 679,247 | 332,842 |
Less than 12 months, Unrealized Losses | -18,529 | -9,121 |
12 months or longer, Fair Value | 30,886 | 24,489 |
12 months or longer, Unrealized Losses | -921 | -914 |
Total, Fair Value | 710,133 | 357,331 |
Total, Unrealized Losses | -19,450 | -10,035 |
Obligations of States and Political Subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 255,451 | 22,503 |
Less than 12 months, Unrealized Losses | -16,662 | -192 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 255,451 | 22,503 |
Total, Unrealized Losses | ($16,662) | ($192) |
Securities_Held_to_maturity_se1
Securities (Held to maturity securities losses) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | $0 | $0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or longer, Fair Value | 3,082 | 3,296 |
12 months or longer, Unrealized Losses | -238 | -12 |
Total, Fair Value | 3,082 | 3,296 |
Total, Unrealized Losses | -238 | -12 |
Mortgage-Backed Securities | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or longer, Fair Value | 3,082 | 3,296 |
12 months or longer, Unrealized Losses | -238 | -12 |
Total, Fair Value | 3,082 | 3,296 |
Total, Unrealized Losses | -238 | -12 |
Obligations of States and Political Subdivisions | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Unrealized Losses | $0 | $0 |
Securities_Otherthantemporary_
Securities (Other-than-temporary impairments) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
securities | Available-for-sale Securities | Available-for-sale Securities | Held-to-maturity Securities | Held-to-maturity Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-credit related OTTI | ' | ' | ' | ' | ' | ' | ' | $540 | $612 | ' |
OTTI write-downs included in earnings, available for sale debt securities | 184 | 0 | 0 | 0 | 184 | ' | ' | ' | ' | ' |
OTTI write-downs included in earnings, held to maturity debt securities | 797 | 0 | 0 | 0 | 797 | ' | ' | ' | ' | ' |
Credit related OTTI | ' | 0 | 0 | 0 | 981 | ' | ' | ' | ' | ' |
Intent to sell OTTI | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Total debt security OTTI write-downs included in earnings | 981 | 0 | 0 | 0 | 981 | ' | ' | ' | ' | ' |
Non-credit related impairment recorded directly to AOCI | ' | 0 | 0 | 0 | 683 | ' | ' | ' | ' | ' |
Accretion of non-credit related impairment | ' | -24 | -24 | -72 | -47 | ' | ' | ' | ' | ' |
Total recorded directly to AOCI for increase in non-credit related impairment | ' | -24 | -24 | -72 | 636 | ' | ' | ' | ' | ' |
Total OTTI losses recorded on debt securities | ' | -24 | -24 | -72 | 1,617 | ' | ' | ' | ' | ' |
Credit losses related OTTI | ' | ' | ' | ' | ' | $184 | $184 | $797 | $797 | ' |
Percentage of Heartland's mortgage-backed securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84.00% |
Number of mortgage-backed securities with recorded OTTI | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_and_Leases_Loans_and_lea
Loans and Leases (Loans and leases receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Commercial | Commercial | Commercial Real Estate | Commercial Real Estate | Agricultural and Agricultural Real Estate | Agricultural and Agricultural Real Estate | Commercial and Commercial Real Estate | Commercial and Commercial Real Estate | Residential Real Estate | Residential Real Estate | Consumer | Consumer | Gross Loans and Leases Receivable Held to Maturity | Gross Loans and Leases Receivable Held to Maturity | Citizens Finance Co | Minimum | Minimum | Maximum | Maximum | ||
Loans and Finance Receivables | Commercial and Commercial Real Estate | Residential Real Estate | Commercial and Commercial Real Estate | Residential Real Estate | |||||||||||||||||
Consumer | |||||||||||||||||||||
Loans and Leases [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases receivable held to maturity | $2,904,947 | $2,825,170 | $755,658 | $712,308 | $1,287,337 | $1,289,184 | $324,339 | $328,311 | $2,042,995 | $2,001,492 | $269,501 | $249,689 | $268,112 | $245,678 | $2,904,947 | $2,825,170 | ' | ' | ' | ' | ' |
Unearned discount | -232 | -676 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred loan fees | -3,009 | -2,945 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net loans and leases receivable held to maturity | 2,901,706 | 2,821,549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans covered under loss share agreements | 5,876 | 7,253 | ' | ' | ' | ' | 446 | 748 | 2,402 | 3,074 | 2,433 | 2,645 | 595 | 786 | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses | -41,311 | -38,715 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases receivable, net | $2,866,271 | $2,790,087 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of loan agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '10 years | '5 years | '30 years |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Loans_and_Leases_Allowance_for
Loans and Leases (Allowance for credit losses on financing receivables) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | $7,141 | ' | $4,624 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 34,170 | ' | 34,091 | ' | ' | ' |
Total | 41,311 | 37,623 | 38,715 | 40,401 | 41,439 | 36,808 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 81,134 | ' | 83,576 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 2,823,813 | ' | 2,741,594 | ' | ' | ' |
Total | 2,904,947 | ' | 2,825,170 | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | 3,178 | ' | 1,350 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 9,918 | ' | 10,038 | ' | ' | ' |
Total | 13,096 | 9,436 | 11,388 | 11,268 | 10,287 | 10,547 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 21,696 | ' | 9,031 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 733,962 | ' | 703,277 | ' | ' | ' |
Total | 755,658 | ' | 712,308 | ' | ' | ' |
Commercial Real Estate | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | 838 | ' | 1,112 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 13,205 | ' | 13,361 | ' | ' | ' |
Total | 14,043 | 13,671 | 14,473 | 15,300 | 17,057 | 14,621 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 28,018 | ' | 45,583 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 1,259,319 | ' | 1,243,601 | ' | ' | ' |
Total | 1,287,337 | ' | 1,289,184 | ' | ' | ' |
Agricultural and Agricultural Real Estate | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | 619 | ' | 109 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 2,197 | ' | 2,029 | ' | ' | ' |
Total | 2,816 | 3,055 | 2,138 | 2,057 | 2,002 | 1,763 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 19,249 | ' | 16,128 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 305,090 | ' | 312,183 | ' | ' | ' |
Total | 324,339 | ' | 328,311 | ' | ' | ' |
Residential Real Estate | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | 678 | ' | 783 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 2,859 | ' | 2,760 | ' | ' | ' |
Total | 3,537 | 3,580 | 3,543 | 3,868 | 3,899 | 3,001 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 6,986 | ' | 7,443 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 262,515 | ' | 242,246 | ' | ' | ' |
Total | 269,501 | ' | 249,689 | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Ending Balance Under ASC 310-10-35 | 1,828 | ' | 1,270 | ' | ' | ' |
Ending Balance Under ASC 450-20 | 5,991 | ' | 5,903 | ' | ' | ' |
Total | 7,819 | 7,881 | 7,173 | 7,908 | 8,193 | 6,874 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 5,185 | ' | 5,391 | ' | ' | ' |
Ending Balance Evaluated for Impairment Under ASC 450-20 | 262,927 | ' | 240,287 | ' | ' | ' |
Total | $268,112 | ' | $245,678 | ' | ' | ' |
Loans_and_Leases_Financing_rec
Loans and Leases (Financing receivables, non accrual status) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Nonaccrual loans | $28,339 | $38,675 |
Nonaccrual troubled debt restructured loans | 18,749 | 4,481 |
Total nonaccrual loans | 47,088 | 43,156 |
Accruing loans past due 90 days or more | 0 | 0 |
Performing troubled debt restructured loans | $19,371 | $21,121 |
Loans_and_Leases_Troubled_debt
Loans and Leases (Troubled debt restructurings on financing receivables) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
loans | loans | loans | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 1 | 1 | 11 | 6 |
Pre-modification recorded investment | $65 | $87 | $21,377 | $2,911 |
Post-modification recorded investment | 65 | 87 | 21,377 | 2,911 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 3 | 0 |
Pre-modification recorded investment | 0 | 0 | 17,873 | 0 |
Post-modification recorded investment | 0 | 0 | 17,873 | 0 |
Commercial Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 2 |
Pre-modification recorded investment | 0 | 0 | 0 | 1,396 |
Post-modification recorded investment | 0 | 0 | 0 | 1,396 |
Commercial and Commercial Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 3 | 2 |
Pre-modification recorded investment | 0 | 0 | 17,873 | 1,396 |
Post-modification recorded investment | 0 | 0 | 17,873 | 1,396 |
Agricultural and Agricultural Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 3 | 2 |
Pre-modification recorded investment | 0 | 0 | 2,576 | 276 |
Post-modification recorded investment | 0 | 0 | 2,576 | 276 |
Residential Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 1 | 1 | 4 | 1 |
Pre-modification recorded investment | 65 | 87 | 762 | 87 |
Post-modification recorded investment | 65 | 87 | 762 | 87 |
Consumer | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 1 | 1 |
Pre-modification recorded investment | 0 | 0 | 166 | 1,152 |
Post-modification recorded investment | $0 | $0 | $166 | $1,152 |
Loans_and_Leases_Troubled_debt1
Loans and Leases (Troubled debt restructured loans with payment default) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
loans | loans | loans | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 1 | 3 | 4 | 3 |
Recorded investment for loans with payment defaults | $13,000 | $1,439 | $17,837 | $1,439 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 1 | 0 | 2 | 0 |
Recorded investment for loans with payment defaults | 13,000 | 0 | 17,670 | 0 |
Commercial Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 0 | 1 | 0 | 1 |
Recorded investment for loans with payment defaults | 0 | 1,380 | 0 | 1,380 |
Commercial and Commercial Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 1 | 1 | 2 | 1 |
Recorded investment for loans with payment defaults | 13,000 | 1,380 | 17,670 | 1,380 |
Agricultural and Agricultural Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 0 | 0 | 0 | 0 |
Recorded investment for loans with payment defaults | 0 | 0 | 0 | 0 |
Residential Real Estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 0 | 2 | 2 | 2 |
Recorded investment for loans with payment defaults | 0 | 59 | 167 | 59 |
Consumer | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans with payment defaults | 0 | 0 | 0 | 0 |
Recorded investment for loans with payment defaults | $0 | $0 | $0 | $0 |
Loans_and_Leases_Loans_and_lea1
Loans and Leases (Loans and leases not covered by share agreements (credit quality indicator)) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | loans | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | $2,904,947 | $2,825,170 |
Number of loans classified as doubtful | 1 | ' |
Number of loans classified as loss | 0 | ' |
Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 755,658 | 712,308 |
Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 1,287,337 | 1,289,184 |
Commercial and Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 2,042,995 | 2,001,492 |
Agricultural and Agricultural Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 324,339 | 328,311 |
Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 269,501 | 249,689 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 268,112 | 245,678 |
Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 2,645,764 | 2,545,323 |
Pass | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 695,073 | 661,118 |
Pass | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 1,159,006 | 1,134,784 |
Pass | Commercial and Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 1,854,079 | 1,795,902 |
Pass | Agricultural and Agricultural Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 280,501 | 286,264 |
Pass | Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 253,502 | 227,925 |
Pass | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 257,682 | 235,232 |
Nonpass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 259,183 | 279,847 |
Nonpass | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 60,585 | 51,190 |
Nonpass | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 128,331 | 154,400 |
Nonpass | Commercial and Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 188,916 | 205,590 |
Nonpass | Agricultural and Agricultural Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 43,838 | 42,047 |
Nonpass | Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 15,999 | 21,764 |
Nonpass | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | $10,430 | $10,446 |
Loans_and_Leases_Loans_and_lea2
Loans and Leases (Loans and leases not covered by share agreements (in text)) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | $2,904,947 | $2,825,170 |
Impaired loans, related allowance | 7,141 | 4,624 |
Loans delinquent 30 to 89 days, percentage | 0.69% | ' |
Nonpass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Percent of nonaccrual loans | 18.00% | 15.00% |
Loans and leases receivable | 259,183 | 279,847 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Percent of loans | 50.00% | 50.00% |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Percent of loans | 45.00% | 50.00% |
Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Percent of loans | 5.00% | ' |
Performing Troubled Debt Restructured Loan | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans and leases receivable | 13,000 | ' |
Impaired loans, related allowance | $2,200 | ' |
Loans_and_Leases_Loans_and_lea3
Loans and Leases (Loans and leases not covered by share agreements (past due financing receivables)) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | $18,687 | $7,173 |
60-89 Days Past Due | 1,500 | 2,056 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 20,187 | 9,229 |
Current | 2,837,672 | 2,772,785 |
Nonaccrual | 47,088 | 43,156 |
Total | 2,904,947 | 2,825,170 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 3,537 | 1,143 |
60-89 Days Past Due | 76 | 525 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 3,613 | 1,668 |
Current | 733,222 | 708,459 |
Nonaccrual | 18,823 | 2,181 |
Total | 755,658 | 712,308 |
Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 2,611 | 1,631 |
60-89 Days Past Due | 495 | 494 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 3,106 | 2,125 |
Current | 1,270,831 | 1,259,112 |
Nonaccrual | 13,400 | 27,947 |
Total | 1,287,337 | 1,289,184 |
Commercial and Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 6,148 | 2,774 |
60-89 Days Past Due | 571 | 1,019 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 6,719 | 3,793 |
Current | 2,004,053 | 1,967,571 |
Nonaccrual | 32,223 | 30,128 |
Total | 2,042,995 | 2,001,492 |
Agricultural and Agricultural Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 9,021 | 687 |
60-89 Days Past Due | 132 | 0 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 9,153 | 687 |
Current | 309,128 | 324,545 |
Nonaccrual | 6,058 | 3,079 |
Total | 324,339 | 328,311 |
Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 236 | 1,278 |
60-89 Days Past Due | 0 | 234 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 236 | 1,512 |
Current | 263,620 | 241,860 |
Nonaccrual | 5,645 | 6,317 |
Total | 269,501 | 249,689 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 3,282 | 2,434 |
60-89 Days Past Due | 797 | 803 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 4,079 | 3,237 |
Current | 260,871 | 238,809 |
Nonaccrual | 3,162 | 3,632 |
Total | $268,112 | $245,678 |
Loans_and_Leases_Impaired_loan
Loans and Leases (Impaired loans not covered by loss share agreements) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | $36,064 | $36,064 | $17,873 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 52,064 | 52,064 | 76,666 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 88,128 | 88,128 | 94,539 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 35,858 | 35,858 | 17,787 |
Impaired loans without a related allowance, Loan Balance | 45,276 | 45,276 | 65,789 |
Total impaired loans held to maturity, Loan Balance | 81,134 | 81,134 | 83,576 |
Impaired loans, Related Allowance Recorded | 7,141 | 7,141 | 4,624 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 34,129 | 24,883 | 24,650 |
Impaired loans without a related allowance, Avg. Loan Balance | 47,142 | 53,307 | 64,846 |
Total impaired loans held to maturity, Avg. Loan Balance | 81,271 | 78,190 | 89,496 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 159 | 461 | 1,277 |
Impaired loans without a related allowance, Interest Income Recognized | 372 | 796 | 1,497 |
Total impaired loans held to maturity, Interest Income Recognized | 531 | 1,257 | 2,774 |
Commercial | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 15,026 | 15,026 | 2,904 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 7,512 | 7,512 | 6,596 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 22,538 | 22,538 | 9,500 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 15,026 | 15,026 | 2,904 |
Impaired loans without a related allowance, Loan Balance | 6,670 | 6,670 | 6,127 |
Total impaired loans held to maturity, Loan Balance | 21,696 | 21,696 | 9,031 |
Impaired loans, Related Allowance Recorded | 3,178 | 3,178 | 1,350 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 5,892 | 3,560 | 5,082 |
Impaired loans without a related allowance, Avg. Loan Balance | 14,980 | 10,242 | 3,813 |
Total impaired loans held to maturity, Avg. Loan Balance | 20,872 | 13,802 | 8,895 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 21 | 51 | 88 |
Impaired loans without a related allowance, Interest Income Recognized | 44 | 56 | 186 |
Total impaired loans held to maturity, Interest Income Recognized | 65 | 107 | 274 |
Commercial Real Estate | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 7,223 | 7,223 | 6,403 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 26,390 | 26,390 | 48,967 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 33,613 | 33,613 | 55,370 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 7,027 | 7,027 | 6,384 |
Impaired loans without a related allowance, Loan Balance | 20,991 | 20,991 | 39,199 |
Total impaired loans held to maturity, Loan Balance | 28,018 | 28,018 | 45,583 |
Impaired loans, Related Allowance Recorded | 838 | 838 | 1,112 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 8,494 | 7,625 | 12,671 |
Impaired loans without a related allowance, Avg. Loan Balance | 19,507 | 26,630 | 41,814 |
Total impaired loans held to maturity, Avg. Loan Balance | 28,001 | 34,255 | 54,485 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 81 | 250 | 813 |
Impaired loans without a related allowance, Interest Income Recognized | 171 | 284 | 689 |
Total impaired loans held to maturity, Interest Income Recognized | 252 | 534 | 1,502 |
Commercial and Commercial Real Estate | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 22,249 | 22,249 | 9,307 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 33,902 | 33,902 | 55,563 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 56,151 | 56,151 | 64,870 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 22,053 | 22,053 | 9,288 |
Impaired loans without a related allowance, Loan Balance | 27,661 | 27,661 | 45,326 |
Total impaired loans held to maturity, Loan Balance | 49,714 | 49,714 | 54,614 |
Impaired loans, Related Allowance Recorded | 4,016 | 4,016 | 2,462 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 14,386 | 11,185 | 17,753 |
Impaired loans without a related allowance, Avg. Loan Balance | 34,487 | 36,872 | 45,627 |
Total impaired loans held to maturity, Avg. Loan Balance | 48,873 | 48,057 | 63,380 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 102 | 301 | 901 |
Impaired loans without a related allowance, Interest Income Recognized | 215 | 340 | 875 |
Total impaired loans held to maturity, Interest Income Recognized | 317 | 641 | 1,776 |
Agricultural and Agricultural Real Estate | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 7,363 | 7,363 | 1,493 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 11,886 | 11,886 | 14,654 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 19,249 | 19,249 | 16,147 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 7,363 | 7,363 | 1,493 |
Impaired loans without a related allowance, Loan Balance | 11,886 | 11,886 | 14,635 |
Total impaired loans held to maturity, Loan Balance | 19,249 | 19,249 | 16,128 |
Impaired loans, Related Allowance Recorded | 619 | 619 | 109 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 12,965 | 6,885 | 379 |
Impaired loans without a related allowance, Avg. Loan Balance | 6,691 | 10,828 | 13,728 |
Total impaired loans held to maturity, Avg. Loan Balance | 19,656 | 17,713 | 14,107 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 22 | 65 | 83 |
Impaired loans without a related allowance, Interest Income Recognized | 125 | 370 | 539 |
Total impaired loans held to maturity, Interest Income Recognized | 147 | 435 | 622 |
Residential Real Estate | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 2,746 | 2,746 | 3,197 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 4,782 | 4,782 | 4,741 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 7,528 | 7,528 | 7,938 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 2,736 | 2,736 | 3,170 |
Impaired loans without a related allowance, Loan Balance | 4,250 | 4,250 | 4,273 |
Total impaired loans held to maturity, Loan Balance | 6,986 | 6,986 | 7,443 |
Impaired loans, Related Allowance Recorded | 678 | 678 | 783 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 3,187 | 3,330 | 2,737 |
Impaired loans without a related allowance, Avg. Loan Balance | 4,463 | 4,102 | 3,861 |
Total impaired loans held to maturity, Avg. Loan Balance | 7,650 | 7,432 | 6,598 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 3 | 13 | 89 |
Impaired loans without a related allowance, Interest Income Recognized | 23 | 62 | 65 |
Total impaired loans held to maturity, Interest Income Recognized | 26 | 75 | 154 |
Consumer | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Unpaid Contractual Balance | 3,706 | 3,706 | 3,876 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 1,494 | 1,494 | 1,708 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 5,200 | 5,200 | 5,584 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Loan Balance | 3,706 | 3,706 | 3,836 |
Impaired loans without a related allowance, Loan Balance | 1,479 | 1,479 | 1,555 |
Total impaired loans held to maturity, Loan Balance | 5,185 | 5,185 | 5,391 |
Impaired loans, Related Allowance Recorded | 1,828 | 1,828 | 1,270 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Avg. Loan Balance | 3,591 | 3,483 | 3,781 |
Impaired loans without a related allowance, Avg. Loan Balance | 1,501 | 1,505 | 1,630 |
Total impaired loans held to maturity, Avg. Loan Balance | 5,092 | 4,988 | 5,411 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired loans with a related allowance, Interest Income Recognized | 32 | 82 | 204 |
Impaired loans without a related allowance, Interest Income Recognized | 9 | 24 | 18 |
Total impaired loans held to maturity, Interest Income Recognized | $41 | $106 | $222 |
Loans_and_Leases_Carrying_amou
Loans and Leases (Carrying amount loans covered by loss share agreements) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ' | ' |
Impaired purchased loans | $1,030 | $687 |
Non impaired purchased loans | 4,846 | 6,566 |
Total covered loans | 5,876 | 7,253 |
Commercial and Commercial Real Estate | ' | ' |
Loans covered by loss share agreement (carrying amount) [Line Items] | ' | ' |
Impaired purchased loans | 530 | 598 |
Non impaired purchased loans | 1,872 | 2,476 |
Total covered loans | 2,402 | 3,074 |
Agricultural and Agricultural Real Estate | ' | ' |
Loans covered by loss share agreement (carrying amount) [Line Items] | ' | ' |
Impaired purchased loans | 0 | 0 |
Non impaired purchased loans | 446 | 748 |
Total covered loans | 446 | 748 |
Residential Real Estate | ' | ' |
Loans covered by loss share agreement (carrying amount) [Line Items] | ' | ' |
Impaired purchased loans | 0 | 0 |
Non impaired purchased loans | 2,433 | 2,645 |
Total covered loans | 2,433 | 2,645 |
Consumer | ' | ' |
Loans covered by loss share agreement (carrying amount) [Line Items] | ' | ' |
Impaired purchased loans | 500 | 89 |
Non impaired purchased loans | 95 | 697 |
Total covered loans | $595 | $786 |
Loans_and_Leases_Troubled_debt2
Loans and Leases (Troubled debt in text) (Details) (USD $) | Jul. 02, 2009 | Jul. 02, 2009 | Jul. 02, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Elizabeth State Bank | Impaired Purchased Loans | Nonimpaired Purchased Loans | Galena State Bank & Trust Co. | Non-residential Real Estate | Non-residential Real Estate | Residential Real Estate |
Elizabeth State Bank | Elizabeth State Bank | agreements | Losses | Recoveries | Galena State Bank & Trust Co. | ||
Galena State Bank & Trust Co. | Galena State Bank & Trust Co. | ||||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Contractually required payments of loans acquired | $42.70 | $13.80 | $28.90 | ' | ' | ' | ' |
Estimated fair value of loans acquired | 37.8 | 9 | 28.7 | ' | ' | ' | ' |
Number of loss share agreements | ' | ' | ' | 2 | ' | ' | ' |
Shared loss arrangement, maximum covered assets | ' | ' | ' | $10 | ' | ' | ' |
Loss sharing agreement, term | ' | ' | ' | ' | '5 years | '8 years | '10 years |
Allowance_for_Loan_and_Lease_L2
Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $37,623 | $41,439 | $38,715 | $36,808 |
Charge-offs | -2,513 | -3,050 | -8,350 | -6,912 |
Recoveries | 1,052 | 2,514 | 3,298 | 5,653 |
Provision | 5,149 | -502 | 7,648 | 4,852 |
Ending Balance | 41,311 | 40,401 | 41,311 | 40,401 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 9,436 | 10,287 | 11,388 | 10,547 |
Charge-offs | -163 | -107 | -1,422 | -814 |
Recoveries | 78 | 1,550 | 983 | 1,799 |
Provision | 3,745 | -462 | 2,147 | -264 |
Ending Balance | 13,096 | 11,268 | 13,096 | 11,268 |
Commercial Real Estate | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 13,671 | 17,057 | 14,473 | 14,621 |
Charge-offs | -630 | -1,668 | -2,561 | -2,762 |
Recoveries | 514 | 717 | 1,279 | 2,996 |
Provision | 488 | -806 | 852 | 445 |
Ending Balance | 14,043 | 15,300 | 14,043 | 15,300 |
Agricultural | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 3,055 | 2,002 | 2,138 | 1,763 |
Charge-offs | 0 | -1 | -23 | -1 |
Recoveries | 1 | 1 | 100 | 82 |
Provision | -240 | 55 | 601 | 213 |
Ending Balance | 2,816 | 2,057 | 2,816 | 2,057 |
Residential Real Estate | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 3,580 | 3,899 | 3,543 | 3,001 |
Charge-offs | -450 | -100 | -856 | -376 |
Recoveries | 76 | 95 | 102 | 161 |
Provision | 331 | -26 | 748 | 1,082 |
Ending Balance | 3,537 | 3,868 | 3,537 | 3,868 |
Consumer | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 7,881 | 8,193 | 7,173 | 6,874 |
Charge-offs | -1,270 | -1,174 | -3,488 | -2,959 |
Recoveries | 383 | 151 | 834 | 615 |
Provision | 825 | 738 | 3,300 | 3,378 |
Ending Balance | 7,819 | 7,908 | 7,819 | 7,908 |
Leases | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 0 | 1 | 0 | 2 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 0 | -1 | 0 | -2 |
Ending Balance | 0 | 0 | 0 | 0 |
Unallocated | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 0 | 0 | 0 | 0 |
Ending Balance | $0 | $0 | $0 | $0 |
Goodwill_Core_Deposit_Premium_2
Goodwill, Core Deposit Premium and Other Intangible Assets (Goodwill) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill | $30,627 | $30,627 |
Goodwill_Core_Deposit_Premium_3
Goodwill, Core Deposit Premium and Other Intangible Assets (Carrying amount of intangible assets (incl accumulated amortization) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $43,940 | $35,737 |
Accumulated Amortization | 20,505 | 17,251 |
Net Carrying Amount | 23,435 | 18,486 |
Core Deposits [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 11,668 | 11,668 |
Accumulated Amortization | 9,887 | 9,327 |
Net Carrying Amount | 1,781 | 2,341 |
Mortgage Servicing Rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 31,095 | 22,892 |
Accumulated Amortization | 9,899 | 7,239 |
Net Carrying Amount | 21,196 | 15,653 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,177 | 1,177 |
Accumulated Amortization | 719 | 685 |
Net Carrying Amount | $458 | $492 |
Goodwill_Core_Deposit_Premium_4
Goodwill, Core Deposit Premium and Other Intangible Assets (Estimated future amortization expense for amortizable intangible assets) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Future amortization expense for amortizable intangible assets [Line Items] | ' |
Three months ending December 31, 2013 | $1,767 |
Year ending December 31, 2014 | 7,051 |
Year ending December 31, 2015 | 5,541 |
Year ending December 31, 2016 | 4,203 |
Year ending December 31, 2017 | 2,868 |
Year ending December 31, 2018 | 1,535 |
Thereafter | 470 |
Core Deposits [Member] | ' |
Future amortization expense for amortizable intangible assets [Line Items] | ' |
Three months ending December 31, 2013 | 181 |
Year ending December 31, 2014 | 468 |
Year ending December 31, 2015 | 267 |
Year ending December 31, 2016 | 238 |
Year ending December 31, 2017 | 212 |
Year ending December 31, 2018 | 187 |
Thereafter | 228 |
Mortgage Servicing Rights [Member] | ' |
Future amortization expense for amortizable intangible assets [Line Items] | ' |
Three months ending December 31, 2013 | 1,575 |
Year ending December 31, 2014 | 6,540 |
Year ending December 31, 2015 | 5,232 |
Year ending December 31, 2016 | 3,924 |
Year ending December 31, 2017 | 2,616 |
Year ending December 31, 2018 | 1,309 |
Thereafter | 0 |
Customer Relationships [Member] | ' |
Future amortization expense for amortizable intangible assets [Line Items] | ' |
Three months ending December 31, 2013 | 11 |
Year ending December 31, 2014 | 43 |
Year ending December 31, 2015 | 42 |
Year ending December 31, 2016 | 41 |
Year ending December 31, 2017 | 40 |
Year ending December 31, 2018 | 39 |
Thereafter | $242 |
Goodwill_Core_Deposit_Premium_5
Goodwill, Core Deposit Premium and Other Intangible Assets (Mortgage loans servicing) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Mortgage Servicing Rights 15-year Tranche [Member] | Mortgage Servicing Rights 15-year Tranche [Member] | Mortgage Servicing Rights 30-year Tranche [Member] | Mortgage Servicing Rights 30-year Tranche [Member] | GNMA [Member] | |||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans serviced for others | $2,890,000,000 | $2,200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | 0 | 496,000 | ' | ' | ' | ' | ' | ' | ' |
Valuation servicing rights in tranches [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing asset at amortized value | 31,200,000 | 16,000,000 | ' | ' | 4,800,000 | 3,300,000 | 23,600,000 | 12,600,000 | 2,800,000 |
Servicing asset, agreement term | ' | ' | ' | ' | '15 years | '15 years | '30 years | ' | ' |
Servicing asset at amortized cost | $21,196,000 | $15,653,000 | $13,791,000 | $11,276,000 | $3,200,000 | $3,000,000 | $16,200,000 | $12,600,000 | $1,800,000 |
Goodwill_Core_Deposit_Premium_6
Goodwill, Core Deposit Premium and Other Intangible Assets (Changes in capitalized mortgage servicing rights) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | $15,653 | $11,276 |
Originations | ' | ' | 10,595 | 7,916 |
Amortization | ' | ' | -5,548 | -4,727 |
Valuation adjustment | 0 | -493 | 496 | -674 |
Balance at end of period | $21,196 | $13,791 | $21,196 | $13,791 |
Borrowings_Details
Borrowings (Details) (USD $) | Sep. 30, 2013 | Jun. 14, 2013 | Jun. 14, 2013 | Jun. 13, 2013 |
credit_line | Line of Credit 1 | Line of Credit 1 | ||
credit_line | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Number of credit lines | 2 | ' | 1 | ' |
Maximum borrowing capacity | ' | $25,000,000 | $20,000,000 | $5,000,000 |
Amount outstanding | $0 | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Cash collateral on derivative financial instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Cash pledged as collateral | $6,200 | $6,700 |
Counterparties | ' | ' |
Derivative [Line Items] | ' | ' |
Cash pledged as collateral | $15 | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Estimated cash payments and reclassification to interest expense) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Change in net unrealized losses on cash flow hedges | $1.60 |
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense within the next twelve months | $2.10 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Executed interest rate swap) (Details) (USD $) | Apr. 20, 2011 | Mar. 31, 2009 |
In Millions, unless otherwise specified | Interest Rate Swap 1 | Interest Rate Swap |
transaction | ||
Derivative [Line Items] | ' | ' |
Derivative, notional amount | $15 | $65 |
Number of instruments held | ' | 3 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Balance sheet category and fair values of derivative instruments (cash flow hedges)) (Details) (Other Liabilities, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap 1 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | $12,046 | $13,002 |
Fair Value | -509 | -711 |
Receive Rate | 2.93% | 2.96% |
Weighted Average Pay Rate | 5.14% | 5.14% |
Interest Rate Swap 2 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 25,000 | 25,000 |
Fair Value | -289 | -708 |
Receive Rate | 0.25% | 0.31% |
Weighted Average Pay Rate | 2.58% | 2.58% |
Interest Rate Swap 3 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 20,000 | 20,000 |
Fair Value | -1,637 | -2,186 |
Receive Rate | 0.26% | 0.31% |
Weighted Average Pay Rate | 3.22% | 3.22% |
Interest Rate Swap 4 | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 20,000 | 20,000 |
Fair Value | ($1,905) | ($3,020) |
Receive Rate | 0.27% | 0.35% |
Weighted Average Pay Rate | 3.36% | 3.36% |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Gains (losses) recognized on derivatives (cash flow hedges)) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Expense | Interest Rate Swap 1 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | $203 | ($58) |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -210 | -226 |
Interest Expense | Interest Rate Swap 2 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 419 | 189 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -436 | -397 |
Interest Expense | Interest Rate Swap 3 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 548 | -262 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -446 | -421 |
Interest Expense | Interest Rate Swap 4 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 1,115 | -606 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -460 | -442 |
Other Income | Interest Rate Swap 1 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 |
Other Income | Interest Rate Swap 2 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 |
Other Income | Interest Rate Swap 3 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 |
Other Income | Interest Rate Swap 4 | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | $0 | $0 |
Derivative_Financial_Instrumen7
Derivative Financial Instruments (Balance sheet category and fair values of derivative instruments (not designated as hedging instruments)) (Details) (Not Designated as Hedging Instrument, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets | Interest Rate Lock Commitments | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | $104,098 | $267,397 |
Fair Value | 4,601 | 9,353 |
Other Assets | Forward Contracts | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 69,100 | 168,910 |
Fair Value | 1,271 | 462 |
Other Liabilities | Forward Contracts | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 185,942 | 351,996 |
Fair Value | ($3,320) | ($1,221) |
Derivative_Financial_Instrumen8
Derivative Financial Instruments (Derivative instruments gains an dlosses recognized (not designated as hedging instruments)) (Details) (Gain on Sale of Loans Held for Sale, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Rate Lock Commitments | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Year-to-Date Gain(Loss) Recognized | ($6,047) | $12,759 |
Forward Contracts | ' | ' |
Trading Activity, Gains and Losses, Net [Line Items] | ' | ' |
Year-to-Date Gain(Loss) Recognized | ($1,289) | ($3,870) |
Fair_Value_Fair_value_measurem
Fair Value (Fair value measurement recurring) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | $1,219 | $380 |
Securities available for sale | 1,391,610 | 1,506,075 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 8,028 | 12,811 |
Derivative liabilities | 0 | 0 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 0 | 0 |
Securities available for sale | 1,378,625 | 1,488,924 |
Derivative liabilities | 7,660 | 7,846 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 0 | 0 |
Securities available for sale | 4,957 | 4,340 |
Derivative liabilities | 0 | 0 |
Recurring Basis | Total Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 1,391,610 | 1,506,075 |
Derivative assets | 5,872 | 9,815 |
Total assets at fair value | 1,398,701 | 1,516,270 |
Derivative liabilities | 7,660 | 7,846 |
Total liabilities at fair value | 7,660 | 7,846 |
Recurring Basis | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 8,028 | 12,811 |
Derivative assets | 0 | 0 |
Total assets at fair value | 9,247 | 13,191 |
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 0 | 0 |
Securities available for sale | 1,378,625 | 1,488,924 |
Derivative assets | 5,872 | 9,815 |
Total assets at fair value | 1,384,497 | 1,498,739 |
Derivative liabilities | 7,660 | 7,846 |
Total liabilities at fair value | 7,660 | 7,846 |
Recurring Basis | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities | 0 | 0 |
Securities available for sale | 4,957 | 4,340 |
Derivative assets | 0 | 0 |
Total assets at fair value | 4,957 | 4,340 |
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | $0 | $0 |
Fair_Value_Fair_value_measurem1
Fair Value (Fair value measurement non-recurring) (Details) (Nonrecurring Basis, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | $32,428 | $78,952 | ||
Other real estate owned | 33,018 | 35,822 | ||
Mortgage servicing rights | ' | 15,956 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Other real estate owned | 0 | 0 | ||
Mortgage servicing rights | ' | 0 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Other real estate owned | 0 | 0 | ||
Mortgage servicing rights | ' | 0 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 32,428 | 78,952 | ||
Other real estate owned | 33,018 | [1] | 35,822 | [1] |
Mortgage servicing rights | ' | 15,956 | ||
Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 1,860 | 14,504 | ||
Other real estate owned | 2,440 | 6,953 | ||
Mortgage servicing rights | ' | 477 | ||
Commercial | Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 12,455 | 7,681 | ||
Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Commercial | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Commercial | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 12,455 | [1] | 7,681 | [1] |
Commercial | Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 472 | 1,799 | ||
Commercial Real Estate | Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 8,004 | 44,471 | ||
Commercial Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Commercial Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Commercial Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 8,004 | [1] | 44,471 | [1] |
Commercial Real Estate | Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 1,374 | 6,898 | ||
Agricultural and Agricultural Real Estate | Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 6,749 | 16,019 | ||
Agricultural and Agricultural Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Agricultural and Agricultural Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Agricultural and Agricultural Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 6,749 | [1] | 16,019 | [1] |
Agricultural and Agricultural Real Estate | Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 1 | ||
Residential Real Estate | Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 3,284 | 6,660 | ||
Residential Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Residential Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Residential Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 3,284 | [1] | 6,660 | [1] |
Residential Real Estate | Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 988 | ||
Consumer | Total Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 1,936 | 4,121 | ||
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Consumer | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 0 | 0 | ||
Consumer | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 1,936 | [1] | 4,121 | [1] |
Consumer | Losses | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Collateral dependent impaired loans | $14 | $4,818 | ||
[1] | Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. |
Fair_Value_Quantitative_Inform
Fair Value (Quantitative Information about Level 3 fair value measurements) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Securities available for sale | 1,391,610 | 1,506,075 | ||
Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Securities available for sale | 4,957 | 4,340 | ||
Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Securities available for sale | 4,957 | 4,340 | ||
Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 32,428 | 78,952 | ||
Other real estate owned | 33,018 | [1] | 35,822 | [1] |
Mortgage servicing rights | ' | 15,956 | ||
Commercial | Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 12,455 | [1] | 7,681 | [1] |
Commercial Real Estate | Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 8,004 | [1] | 44,471 | [1] |
Agricultural and Agricultural Real Estate | Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 6,749 | [1] | 16,019 | [1] |
Residential Real Estate | Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 3,284 | [1] | 6,660 | [1] |
Consumer | Nonrecurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 1,936 | [1] | 4,121 | [1] |
Z-Tranche Securities | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Securities available for sale | 4,957 | 4,340 | ||
Z-Tranche Securities | Minimum | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Pretax discount rate | 7.00% | 8.00% | ||
Actual defaults | 12.71% | 13.94% | ||
Actual deferrals | 6.25% | 6.30% | ||
Z-Tranche Securities | Maximum | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Pretax discount rate | 9.00% | 10.00% | ||
Actual defaults | 20.14% | 20.94% | ||
Actual deferrals | 22.35% | 23.71% | ||
Z-Tranche Securities | Weighted Average | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Actual defaults | 15.52% | 15.52% | ||
Actual deferrals | 11.32% | 11.32% | ||
Mortgage Servicing Rights [Member] | Minimum | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Pretax discount rate | ' | 12.99% | ||
Mortgage Servicing Rights [Member] | Maximum | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Pretax discount rate | ' | 18.71% | ||
Mortgage Servicing Rights [Member] | Weighted Average | Recurring Basis | Level 3 | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ||
Pretax discount rate | ' | 18.05% | ||
[1] | Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. |
Fair_Value_Changes_Level_3_ass
Fair Value (Changes Level 3 assets (fair value, recurring)) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance at January 1 | $4,340 | $3,243 |
Total gains (losses): | ' | ' |
Included in earnings | 642 | 0 |
Included in other comprehensive income | 794 | 938 |
Purchases, issuances, sales and settlements: | ' | ' |
Purchases | 0 | 195 |
Sales | -651 | 0 |
Settlements | -168 | -36 |
Balance at period end | $4,957 | $4,340 |
Fair_Value_Estimated_fair_valu
Fair Value (Estimated fair value financial instruments (incl. carrying amounts)) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Trading securities | $1,219 | $380 |
Securities available for sale | 1,391,610 | 1,506,075 |
Held to maturity securities | 53,893 | 55,982 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 165,008 | 168,054 |
Time deposits in other financial institutions | 3,605 | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 8,028 | 12,811 |
Held to maturity securities | 0 | 0 |
Total securities | 9,247 | 13,191 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Derivatives | 0 | 0 |
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Demand Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Savings Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | ' |
Trading securities | 0 | 0 |
Securities available for sale | 1,378,625 | 1,488,924 |
Held to maturity securities | 53,893 | 55,982 |
Total securities | 1,432,518 | 1,544,906 |
Loans held for sale | 61,640 | 96,165 |
Loans, net | 2,825,746 | 2,702,155 |
Derivatives | 5,872 | 9,815 |
Short term borrowings | 224,048 | 224,626 |
Other borrowings | 321,074 | 376,422 |
Derivatives | 7,660 | 7,846 |
Significant Other Observable Inputs (Level 2) | Demand Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 1,073,688 | 974,232 |
Significant Other Observable Inputs (Level 2) | Savings Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 2,043,397 | 2,004,438 |
Significant Other Observable Inputs (Level 2) | Time Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 807,913 | 866,990 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | ' |
Trading securities | 0 | 0 |
Securities available for sale | 4,957 | 4,340 |
Held to maturity securities | 0 | 0 |
Total securities | 4,957 | 4,340 |
Loans held for sale | 0 | 0 |
Loans, net | 32,428 | 78,952 |
Derivatives | 0 | 0 |
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Demand Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Savings Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 0 | 0 |
Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Commercial | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 723,067 | 683,924 |
Commercial | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 12,455 | 7,681 |
Commercial Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Commercial Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 1,268,190 | 1,236,560 |
Commercial Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 8,004 | 44,471 |
Agricultural and Agricultural Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Agricultural and Agricultural Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 316,487 | 313,424 |
Agricultural and Agricultural Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 6,749 | 16,019 |
Residential Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Residential Real Estate | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 256,050 | 230,390 |
Residential Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 3,284 | 6,660 |
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 0 | 0 |
Consumer | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 261,952 | 237,857 |
Consumer | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 1,936 | 4,121 |
Carrying Amount | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 165,008 | 168,054 |
Time deposits in other financial institutions | 3,605 | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 1,391,610 | 1,506,075 |
Held to maturity securities | 53,841 | 55,502 |
Total securities | 1,446,670 | 1,561,957 |
Loans held for sale | 61,326 | 96,165 |
Loans, net | 2,866,271 | 2,790,087 |
Derivatives | 5,872 | 9,815 |
Short term borrowings | 224,048 | 224,626 |
Other borrowings | 322,538 | 389,025 |
Derivatives | 7,660 | 7,846 |
Carrying Amount | Demand Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 1,073,688 | 974,232 |
Carrying Amount | Savings Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 2,043,397 | 2,004,438 |
Carrying Amount | Time Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 807,913 | 866,990 |
Carrying Amount | Commercial | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 741,728 | 700,225 |
Carrying Amount | Commercial Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 1,274,043 | 1,275,770 |
Carrying Amount | Agricultural and Agricultural Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 322,502 | 326,867 |
Carrying Amount | Residential Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 267,341 | 248,608 |
Carrying Amount | Consumer | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 260,657 | 238,617 |
Estimated Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 165,008 | 168,054 |
Time deposits in other financial institutions | 3,605 | ' |
Trading securities | 1,219 | 380 |
Securities available for sale | 1,391,610 | 1,506,075 |
Held to maturity securities | 53,893 | 55,982 |
Total securities | 1,446,722 | 1,562,437 |
Loans held for sale | 61,640 | 96,165 |
Loans, net | 2,858,174 | 2,781,107 |
Derivatives | 5,872 | 9,815 |
Short term borrowings | 224,048 | 224,626 |
Other borrowings | 321,074 | 376,422 |
Derivatives | 7,660 | 7,846 |
Estimated Fair Value | Demand Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 1,073,688 | 974,232 |
Estimated Fair Value | Savings Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 2,043,397 | 2,004,438 |
Estimated Fair Value | Time Deposits | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Deposits | 807,913 | 866,990 |
Estimated Fair Value | Commercial | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 735,522 | 691,605 |
Estimated Fair Value | Commercial Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 1,276,194 | 1,281,031 |
Estimated Fair Value | Agricultural and Agricultural Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 323,236 | 329,443 |
Estimated Fair Value | Residential Real Estate | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | 259,334 | 237,050 |
Estimated Fair Value | Consumer | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans, net | $263,888 | $241,978 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | $39,880 | $36,812 | $117,471 | $112,182 | ' |
Provision for loan and lease losses | 5,149 | -502 | 7,648 | 4,852 | ' |
Total noninterest income | 20,718 | 29,766 | 72,044 | 81,432 | ' |
Total noninterest expense | 47,147 | 47,159 | 142,660 | 128,758 | ' |
INCOME BEFORE INCOME TAXES | 8,302 | 19,921 | 39,207 | 60,004 | ' |
Segment Assets | 4,912,730 | 4,593,197 | 4,912,730 | 4,593,197 | 4,990,553 |
Average Loans | 2,937,508 | 2,727,806 | 2,906,970 | 2,660,556 | ' |
Community and Other Banking | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | 39,291 | 36,412 | 115,968 | 110,332 | ' |
Provision for loan and lease losses | 5,149 | -502 | 7,648 | 4,852 | ' |
Total noninterest income | 12,309 | 13,988 | 37,630 | 40,902 | ' |
Total noninterest expense | 36,813 | 35,597 | 108,877 | 99,902 | ' |
INCOME BEFORE INCOME TAXES | 9,638 | 15,305 | 37,073 | 46,480 | ' |
Segment Assets | 4,825,781 | 4,467,574 | 4,825,781 | 4,467,574 | ' |
Average Loans | 2,867,933 | 2,628,811 | 2,820,418 | 2,570,493 | ' |
Retail Mortgage Banking | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | 589 | 400 | 1,503 | 1,850 | ' |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | ' |
Total noninterest income | 8,409 | 15,778 | 34,414 | 40,530 | ' |
Total noninterest expense | 10,334 | 11,562 | 33,783 | 28,856 | ' |
INCOME BEFORE INCOME TAXES | -1,336 | 4,616 | 2,134 | 13,524 | ' |
Segment Assets | 86,949 | 125,623 | 86,949 | 125,623 | ' |
Average Loans | $69,575 | $98,995 | $86,552 | $90,063 | ' |