Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 12, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | HEARTLAND FINANCIAL USA INC | ||
Entity Central Index Key | 920112 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 20,584,597 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $389,420,515 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Cash and due from banks | $64,150,000 | $118,441,000 |
Federal funds sold and other short-term investments | 9,721,000 | 6,829,000 |
Cash and cash equivalents | 73,871,000 | 125,270,000 |
Time deposits in other financial institutions | 2,605,000 | 3,355,000 |
Securities: | ||
Trading, at fair value | 0 | 1,801,000 |
Available for sale, at fair value (cost of $1,396,794 at December 31, 2014, and $1,659,456 at December 31, 2013) | 1,401,868,000 | 1,633,902,000 |
Held to maturity, at cost (fair value of $296,768 at December 31, 2014, and $237,437 at December 31, 2013) | 284,587,000 | 237,498,000 |
Other investments, at cost | 20,498,000 | 21,843,000 |
Loans held for sale | 70,514,000 | 46,665,000 |
Loans and leases receivable: | ||
Held to maturity | 3,876,745,000 | 3,496,952,000 |
Loans covered by loss share agreements | 1,258,000 | 5,749,000 |
Allowance for loan and lease losses | -41,449,000 | -41,685,000 |
Loans and leases receivable, net | 3,836,554,000 | 3,461,016,000 |
Premises, furniture and equipment, net | 130,713,000 | 135,714,000 |
Other real estate, net | 19,016,000 | 29,852,000 |
Goodwill | 35,583,000 | 35,583,000 |
Other intangible assets, net | 33,932,000 | 32,959,000 |
Cash surrender value on life insurance | 82,638,000 | 81,110,000 |
FDIC indemnification asset | 0 | 249,000 |
Other assets | 59,983,000 | 76,899,000 |
TOTAL ASSETS | 6,052,362,000 | 5,923,716,000 |
Deposits: | ||
Demand | 1,295,193,000 | 1,238,581,000 |
Savings | 2,687,493,000 | 2,535,242,000 |
Time | 785,336,000 | 892,676,000 |
Total deposits | 4,768,022,000 | 4,666,499,000 |
Short-term borrowings | 330,264,000 | 408,756,000 |
Other borrowings | 396,255,000 | 350,109,000 |
Accrued expenses and other liabilities | 61,504,000 | 58,892,000 |
TOTAL LIABILITIES | 5,556,045,000 | 5,484,256,000 |
STOCKHOLDERS' EQUITY: | ||
Common stock (par value $1 per share; authorized 25,000,000 shares; issued 18,511,125 shares at December 31, 2014 and 18,399,156 shares at December 31, 2013) | 18,511,000 | 18,399,000 |
Capital surplus | 95,816,000 | 91,632,000 |
Retained earnings | 298,764,000 | 265,067,000 |
Accumulated other comprehensive income (loss) | 1,528,000 | -17,336,000 |
Treasury stock at cost (0 shares at both December 31, 2014 and December 31, 2013) | 0 | 0 |
TOTAL STOCKHOLDERS' EQUITY | 496,317,000 | 439,460,000 |
Noncontrolling interest | 0 | 0 |
TOTAL EQUITY | 496,317,000 | 439,460,000 |
TOTAL LIABILITIES AND EQUITY | 6,052,362,000 | 5,923,716,000 |
Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Series A Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Series C Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | $81,698,000 | $81,698,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cost of available for sale securities | $1,396,794,000 | $1,659,456,000 |
Fair value of held to maturity securities | 296,768,000 | 237,437,000 |
Common stock, par value (in usd per share) | $1 | $1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 18,511,125 | 18,399,156 |
Treasury stock shares | 0 | 0 |
Preferred Stock | ||
Preferred stock, par value (in usd 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 | ||
Preferred stock, par value (in usd 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 | ||
Preferred stock, par value (in usd 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 (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME: | |||
Interest and fees on loans and leases | $194,022 | $164,702 | $156,499 |
Interest on securities: | |||
Taxable | 29,727 | 21,501 | 22,129 |
Nontaxable | 13,269 | 13,295 | 10,698 |
Interest on federal funds sold | 1 | 1 | 4 |
Interest on interest bearing deposits in other financial institutions | 23 | 12 | 8 |
TOTAL INTEREST INCOME | 237,042 | 199,511 | 189,338 |
INTEREST EXPENSE: | |||
Interest on deposits | 18,154 | 19,968 | 22,230 |
Interest on short-term borrowings | 877 | 808 | 818 |
Interest on other borrowings (includes $2,239 and $2,069 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the years ended December 31, 2014, and 2013, respectively) | 14,938 | 14,907 | 16,134 |
TOTAL INTEREST EXPENSE | 33,969 | 35,683 | 39,182 |
NET INTEREST INCOME | 203,073 | 163,828 | 150,156 |
Provision for loan and lease losses | 14,501 | 9,697 | 8,202 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 188,572 | 154,131 | 141,954 |
NONINTEREST INCOME: | |||
Service charges and fees | 20,085 | 17,660 | 15,242 |
Loan servicing income (loss) | 5,583 | 1,648 | -151 |
Trust fees | 13,097 | 11,708 | 10,478 |
Brokerage and insurance commissions | 4,440 | 4,561 | 3,702 |
Securities gains, net (includes $3,668 and $7,121 of net security gains reclassified from accumulated other comprehensive income for the years ended December 31, 2014, and 2013, respectively) | 3,668 | 7,121 | 13,998 |
Gain (loss) on trading account securities | -38 | 1,421 | 47 |
Impairment loss on securities | 0 | 0 | -981 |
Gains on sale of loans held for sale | 31,337 | 40,195 | 60,649 |
Valuation adjustment on mortgage servicing rights | 0 | 496 | -477 |
Income on bank owned life insurance | 1,472 | 1,555 | 1,442 |
Other noninterest income | 2,580 | 3,253 | 4,713 |
TOTAL NONINTEREST INCOME | 82,224 | 89,618 | 108,662 |
NONINTEREST EXPENSES: | |||
Salaries and employee benefits | 129,843 | 118,224 | 105,727 |
Occupancy | 15,746 | 13,459 | 10,629 |
Furniture and equipment | 8,105 | 8,040 | 6,326 |
Professional fees | 18,241 | 17,532 | 15,338 |
FDIC insurance assessments | 3,808 | 3,544 | 3,292 |
Advertising | 5,524 | 5,294 | 5,294 |
Intangible assets amortization | 2,223 | 1,063 | 562 |
Other real estate and loan collection expenses | 2,309 | 4,445 | 2,890 |
Loss on sales/valuations of assets, net | 2,105 | 3,034 | 7,093 |
Other noninterest expenses | 27,896 | 21,926 | 26,230 |
TOTAL NONINTEREST EXPENSES | 215,800 | 196,561 | 183,381 |
Income (loss) before income taxes | 54,996 | 47,188 | 67,235 |
Income taxes (includes $533 and $1,884 of income tax expense reclassified from accumulated other comprehensive income for the years ended December 31, 2014, and 2013, respectively) | 13,096 | 10,335 | 17,384 |
NET INCOME | 41,900 | 36,853 | 49,851 |
Net (income) loss available to noncontrolling interest, net of tax | 0 | -64 | -59 |
NET INCOME ATTRIBUTABLE TO HEARTLAND | 41,900 | 36,789 | 49,792 |
Preferred dividends and discount | -817 | -1,093 | -3,400 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $41,083 | $35,696 | $46,392 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $2.23 | $2.08 | $2.81 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | $2.19 | $2.04 | $2.77 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.40 | $0.40 | $0.50 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income Consolidated Statements of Income (Parentheticals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest on other borrowings | $14,938 | $14,907 |
Securities gains, net | 3,668 | 7,121 |
Income taxes | 13,096 | 10,335 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Derivatives | ||
Interest on other borrowings | 2,239 | 2,069 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | ||
Securities gains, net | 3,668 | 7,121 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | ||
Income taxes | $533 | $1,884 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
NET INCOME | $41,900 | $36,853 | $49,851 |
Securities: | |||
Net change in unrealized gain (loss) on securities | 34,450 | -50,883 | 20,988 |
Reclassification adjustment for net gains realized in net income | -3,668 | -7,121 | -12,981 |
Net change in non-credit related other than temporary impairment | 95 | 95 | -612 |
Income taxes | -12,193 | 22,119 | -2,750 |
Other comprehensive income (loss) on securities | 18,684 | -35,790 | 4,645 |
Derivatives used in cash flow hedging relationships: | |||
Unrealized gain (loss) on derivatives | -1,957 | 754 | -2,204 |
Reclassification adjustment for net losses on derivatives realized in net income | 2,239 | 2,069 | 1,984 |
Income taxes | -102 | -1,010 | 69 |
Other comprehensive income (loss) on cash flow hedges | 180 | 1,813 | -151 |
Other comprehensive income (loss) | 18,864 | -33,977 | 4,494 |
Comprehensive income | 60,764 | 2,876 | 54,345 |
Less: comprehensive income attributable to noncontrolling interest | 0 | -64 | -59 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HEARTLAND | $60,764 | $2,812 | $54,286 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest |
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 | 54,345 | 49,792 | 4,494 | 59 | ||||
Cash dividends declared: | ||||||||
Preferred | -3,400 | -3,400 | ||||||
Common | -8,295 | -8,295 | ||||||
Purchase of shares of common stock | -2,937 | -2,937 | ||||||
Issuance of shares of common stock | 9,779 | 216 | 4,872 | 4,691 | ||||
Commitments to issue common stock | 2,154 | 2,154 | ||||||
Balance at end 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 | 2,876 | 36,789 | -33,977 | 64 | ||||
Cash dividends declared: | ||||||||
Preferred | -1,093 | -1,093 | ||||||
Common | -6,908 | -6,908 | ||||||
Purchase of shares of common stock | -2,102 | -2,102 | ||||||
Issuance of shares of common stock | 43,118 | 1,571 | 39,445 | 2,102 | ||||
Commitments to issue common stock | 1,828 | 1,828 | ||||||
Purchase of noncontrolling interest | -2,798 | -2,798 | ||||||
Balance at end of period at Dec. 31, 2013 | 439,460 | 81,698 | 18,399 | 91,632 | 265,067 | -17,336 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income | 60,764 | 41,900 | 18,864 | |||||
Cash dividends declared: | ||||||||
Preferred | -817 | -817 | ||||||
Common | -7,386 | -7,386 | ||||||
Purchase of shares of common stock | -899 | -899 | ||||||
Issuance of shares of common stock | 1,797 | 112 | 786 | 899 | ||||
Commitments to issue common stock | 3,398 | 3,398 | ||||||
Balance at end of period at Dec. 31, 2014 | $496,317 | $81,698 | $18,511 | $95,816 | $298,764 | $1,528 | $0 | $0 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share preferred stock (in dollars per share) | $10 | $13.39 | $36.60 |
Cash dividends per share common stock (in dollars per share) | $0.40 | $0.40 | $0.50 |
Shares of common stock purchased | 34,448 | 76,755 | 131,326 |
Shares of common stock issued | 146,417 | 1,648,076 | 474,371 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $41,900 | $36,853 | $49,851 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,751 | 17,240 | 14,141 |
Provision for loan and lease losses | 14,501 | 9,697 | 8,202 |
Net amortization of premium on securities | 26,396 | 29,355 | 22,858 |
Provision for deferred taxes | 3,630 | 2,761 | 505 |
Securities gains, net | -3,668 | -7,121 | -13,998 |
(Increase) decrease in trading account securities | 1,801 | -1,421 | -47 |
Impairment loss on securities | 0 | 0 | 981 |
Stock based compensation | 3,398 | 1,828 | 2,154 |
Write downs and losses on repossessed assets, net | 1,938 | 2,799 | 6,953 |
Loans originated for sale | -964,355 | -1,381,319 | -1,572,117 |
Proceeds on sales of loans held for sale | 963,225 | 1,458,704 | 1,578,678 |
Net gains on sales of loans held for sale | -22,719 | -27,430 | -49,198 |
(Increase) decrease in accrued interest receivable | 229 | 243 | -1,323 |
(Increase) decrease in prepaid expenses | -1,381 | 8,279 | 2,916 |
Decrease in accrued interest payable | -1,342 | -949 | -1,001 |
Capitalization of mortgage servicing rights | -8,618 | -12,769 | -11,451 |
Valuation adjustment on mortgage servicing rights | 0 | -496 | 477 |
Other, net | 7,715 | -666 | 10,117 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 80,401 | 135,588 | 48,698 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of time deposits in other financial institutions | 0 | -3,605 | 0 |
Proceeds from the sale of securities available for sale | 791,767 | 546,532 | 576,083 |
Proceeds from the sale of other investments | 13,201 | 5,588 | 4,694 |
Proceeds from the maturity of and principal paydowns on securities available for sale | 136,552 | 222,881 | 288,736 |
Proceeds from the maturity of and principal paydowns on securities held to maturity | 1,501 | 2,170 | 1,576 |
Proceeds from the maturity of time deposits and other investments | 750 | 250 | 36 |
Purchase of securities available for sale | -715,215 | -861,967 | -1,076,962 |
Purchase of securities held to maturity | -22,983 | 0 | 0 |
Purchase of other investments | -11,856 | -7,288 | -851 |
Net increase in loans and leases | -397,311 | -284,843 | -211,565 |
Purchase of bank owned life insurance policies | 0 | -2,835 | -4,571 |
Capital expenditures | -6,615 | -10,481 | -19,787 |
Net cash acquired in acquisitions | 0 | 49,665 | 61,778 |
Proceeds from sale of equipment | 363 | 137 | 460 |
Proceeds on sale of OREO and other repossessed assets | 16,174 | 19,839 | 30,660 |
NET CASH USED BY INVESTING ACTIVITIES | -193,672 | -323,957 | -349,713 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in demand deposits and savings accounts | 208,863 | 159,946 | 417,988 |
Net decrease in time deposit accounts | -107,340 | -58,548 | -33,339 |
Net increase (decrease) in short-term borrowings | -49,492 | 19,450 | -55,455 |
Proceeds from short term FHLB advances | 305,000 | 204,000 | 47,000 |
Repayments of short term FHLB advances | -334,000 | -109,000 | -37,000 |
Proceeds from other borrowings | 78,950 | 5,160 | 11,700 |
Repayments of other borrowings | -32,804 | -66,885 | -6,806 |
Purchase of noncontrolling interest | 0 | -2,798 | 0 |
Purchase of treasury stock | -899 | -2,102 | -2,937 |
Proceeds from issuance of common stock | 1,673 | 4,265 | 9,557 |
Excess tax benefits on exercised stock options | 124 | 98 | 222 |
Dividends paid | -8,203 | -8,001 | -11,695 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 61,872 | 145,585 | 339,235 |
Net increase (decrease) in cash and cash equivalents | -51,399 | -42,784 | 38,220 |
Cash and cash equivalents at beginning of year | 125,270 | 168,054 | 129,834 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 73,871 | 125,270 | 168,054 |
Supplemental disclosures: | |||
Cash paid for income/franchise taxes | 2,832 | 5,459 | 12,197 |
Cash paid for interest | 35,311 | 36,632 | 40,183 |
Loans transferred to OREO | 7,272 | 14,531 | 28,751 |
Purchases of securities available for sale, accrued, not paid | 16,835 | 18,306 | 61,923 |
Securities transferred from available for sale to held to maturity | 25,162 | 179,528 | 0 |
Stock consideration granted for acquisition | $0 | $38,755 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Nature of Operations - Heartland Financial USA, Inc. ("Heartland") is a multi-bank holding company with locations in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Colorado, Montana, Minnesota, and Kansas. The principal services of Heartland, through its subsidiaries, are FDIC-insured deposit accounts and related services, and loans to businesses and individuals. The loans consist primarily of commercial and commercial real estate, agricultural and agricultural real estate and residential real estate. In addition to the full-service banking offices, Heartland provides residential real estate loans, under the brand National Residential Mortgage, through loan production offices in California, Nevada, Idaho, North Dakota, Oregon, Washington, and Nebraska. | ||||||||||||
Principles of Presentation - The consolidated financial statements include the accounts of Heartland and its subsidiaries: Dubuque Bank and Trust Company; Galena State Bank & Trust Co.; Illinois Bank & Trust; Wisconsin Bank & Trust; New Mexico Bank & Trust; Arizona Bank & Trust; Rocky Mountain Bank; Summit Bank & Trust; Minnesota Bank & Trust; Morrill & Janes Bank and Trust Company; Citizens Finance Parent Co.; DB&T Insurance, Inc.; DB&T Community Development Corp.; Heartland Community Development, Inc.; Citizens Finance Co.; Citizens Finance of Illinois Co.; Heartland Financial Statutory Trust III; Heartland Financial Statutory Trust IV; Heartland Financial Statutory Trust V; Heartland Financial Statutory Trust VI; Heartland Financial Statutory Trust VII; Morrill Statutory Trust I; and Morrill Statutory Trust II. All of Heartland’s subsidiaries are wholly-owned as of December 31, 2014. Prior to April 2013, Heartland had been an 80% owner of Minnesota Bank & Trust. The noncontrolling interest in the majority-owned subsidiaries is noted on the consolidated balance sheets and on the consolidated statements of income. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and prevailing practices within the banking industry. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan and lease losses. | ||||||||||||
Cash and Cash Equivalents - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and other short-term investments. Generally, federal funds are purchased and sold for one-day periods. | ||||||||||||
Trading Securities - Trading securities represent those securities Heartland intends to actively trade and are stated at fair value with changes in fair value reflected in noninterest income. | ||||||||||||
Securities Available for Sale - Available for sale securities consist of those securities not classified as held to maturity or trading, which management intends to hold for indefinite periods of time or that may be sold in response to changes in interest rates, prepayments or other similar factors. Available for sale securities are stated at fair value with any unrealized gain or loss, net of applicable income tax, reported as a separate component of stockholders’ equity. Security premiums and discounts are amortized/accreted using the interest method over the period from the purchase date to the expected maturity or call date of the related security. Declines in the fair value of investment securities available for sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating whether impairment is other-than-temporary, Heartland considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of Heartland to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) Heartland has the intent to sell a security; (2) it is more likely than not that Heartland will be required to sell the security before recovery of its amortized cost basis; or (3) Heartland does not expect to recover the entire amortized cost basis of the security. If Heartland intends to sell a security or if it is more likely than not that Heartland will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If Heartland does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in noninterest income, and an amount related to all other factors, which is recognized in other comprehensive income. Realized securities gains or losses on securities sales (using specific identification method) and declines in value judged to be other-than-temporary are included in impairment loss on securities in the consolidated statements of income. | ||||||||||||
Securities Held to Maturity - Securities which Heartland has the ability and positive intent to hold to maturity are classified as held to maturity. Such securities are stated at amortized cost, adjusted for premiums and discounts that are amortized/accreted using the interest method over the period from the purchase date to the expected maturity or call date of the related security. Unrealized losses determined to be other-than-temporary are charged to noninterest income. | ||||||||||||
Loans and Leases - Interest on loans is accrued and credited to income based primarily on the principal balance outstanding. Income from leases is recorded in decreasing amounts over the term of the contract resulting in a level rate of return on the lease investment. 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 policies, 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 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. | ||||||||||||
Net nonrefundable loan and lease origination fees and certain direct costs associated with the lending process are deferred and recognized as a yield adjustment over the life of the related loan or lease. | ||||||||||||
Troubled Debt Restructured Loans - Loans are considered troubled debt restructured loans ("TDR") if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual TDRs are included and treated consistently with all other nonaccrual loans. In addition, all accruing TDRs are reported and accounted for as impaired loans. Generally, TDRs remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. | ||||||||||||
A loan that is a TDR that has an interest rate consistent with market rates at the time of restructuring and is in compliance with its modified terms in the calendar year after the year in which the restructuring took place is no longer considered a TDR but remains an impaired loan. To be considered in compliance with its modified terms, a loan that is a TDR must be in accrual status and must be current or less than 30 days past due under the modified repayment terms; however, the loan will continue to be considered impaired. A loan that has been modified at a below market rate will remain classified as a TDR and an impaired loan. If the borrower’s financial conditions improve to the extent that the borrower qualifies for a new loan with market terms, the new loan will not be considered a TDR or impaired if Heartland's credit analysis shows the borrower's ability to perform under the new market terms. | ||||||||||||
Loans Held for Sale - Loans held for sale are stated at the lower of cost or fair value on an aggregate basis. Gains or losses on sales are recorded in noninterest income. Direct loan origination costs and fees are deferred at origination of the loan. These deferred costs and fees are recognized in noninterest income as part of the gain or loss on sales of loans upon sale of the loan. | ||||||||||||
Mortgage Servicing and Transfers of Financial Assets - Heartland regularly sells residential mortgage loans to others, primarily GSEs, on a non-recourse basis. Sold loans are not included in the accompanying consolidated balance sheets. Heartland generally retains the right to service the sold loans for a fee. At December 31, 2014 and 2013, Heartland was servicing loans for government sponsored entities with aggregate unpaid principal balances of $3.50 billion and $3.05 billion, respectively. | ||||||||||||
Allowance for Loan and Lease Losses - The allowance for loan and lease losses is maintained at a level estimated by management to provide for known and inherent risks in the loan and lease portfolios. The allowance is based upon a continuing review of past loan and lease loss experience, current economic conditions, volume growth, the underlying collateral value of the loans and leases and other relevant factors. Loans and leases which are deemed uncollectible are charged off and deducted from the allowance. Provisions for loan and lease losses and recoveries on previously charged-off loans and leases are added to the allowance. | ||||||||||||
Reserve for Unfunded Commitments - This reserve is maintained at a level that, in the opinion of management, is appropriate to absorb probable losses associated with Heartland’s commitment to lend funds under existing agreements such as letters or lines of credit. Management determines the appropriateness of the reserve for unfunded commitments based upon reviews of delinquencies, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates, and ultimate losses may vary from the current estimates. These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the allowance. Provisions for unfunded commitment losses are added to the reserve for unfunded commitments, which is included in the Accrued Expenses and Other Liabilities section of the consolidated balance sheets. | ||||||||||||
Premises, Furniture and Equipment - Premises, furniture and equipment are stated at cost less accumulated depreciation. The provision for depreciation of premises, furniture and equipment is determined by straight-line and accelerated methods over the estimated useful lives of 18 to 39 years for buildings, 15 years for land improvements and 3 to 7 years for furniture and equipment. | ||||||||||||
Other Real Estate - Other real estate represents property acquired through foreclosures and settlements of loans. Property acquired is recorded at the estimated fair value of the property less disposal costs. The excess of carrying value over fair value less disposal costs is charged against the allowance for loan and lease losses. Subsequent write downs estimated on the basis of later valuations and gains or losses on sales are charged to loss on sales/valuation of assets, net. Expenses incurred in maintaining such properties are charged to other real estate and loan collection expenses. | ||||||||||||
Goodwill and Intangible Assets - Intangible assets consist of goodwill, core deposit intangibles, customer relationship intangibles and mortgage servicing rights. Goodwill represents the excess of the purchase price of acquired subsidiaries’ net assets over their fair value at the purchase date. Heartland assesses goodwill for impairment annually, and more frequently if events occur which may indicate possible impairment, and assesses goodwill at the reporting unit level, also giving consideration to overall enterprise value as part of that assessment. In evaluating goodwill for impairment, Heartland first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If Heartland concludes that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then no further testing of goodwill assigned to the reporting unit is required. However, if Heartland concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then Heartland performs a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment to recognize, if any. In the first step, the fair value of a reporting unit is compared to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired and it is not necessary to continue to step two of the impairment process. If the fair value of the reporting unit is less than the carrying amount, step two is performed. In step two, the implied fair value of goodwill is compared to the carrying value of the reporting unit's goodwill. The implied fair value of goodwill is computed as a residual value after allocating the fair value of the reporting unit to its assets and liabilities. Heartland estimates the fair value of its reporting units using market multiples of comparable entities, including recent transactions, or a combination of market multiples and discounted cash flow methodology. These methods incorporate assumptions specific to the entity, such as the use of financial forecasts. | ||||||||||||
Core deposit intangibles are amortized over 8 to 18 years on an accelerated basis. Customer relationship intangibles are amortized over 22 years on an accelerated basis. Periodically, Heartland reviews the intangible assets for events or circumstances that may indicate a change in the recoverability of the underlying basis, except mortgage servicing rights which are reviewed quarterly. | ||||||||||||
Mortgage servicing rights associated with loans originated and sold, where servicing is retained, are initially capitalized at fair value and recorded on the consolidated statements of income as a component of gains on sale of loans held for sale. The values of these capitalized servicing rights are amortized as an offset to the servicing revenue earned in relation to the servicing revenue expected to be earned. The carrying values of these rights are reviewed quarterly for impairment based on the calculation of their fair value as performed by an outside third party. For purposes of measuring impairment, the rights are stratified into certain risk characteristics including loan type and loan term. No valuation allowance was required as of December 31, 2014 or 2013. | ||||||||||||
Bank-Owned Life Insurance - Heartland and its subsidiaries have purchased life insurance policies on the lives of certain officers. The one-time premiums paid for the policies, which coincide with the initial cash surrender value, are recorded as an asset. Increases or decreases in the cash surrender value, other than proceeds from death benefits, are recorded as noninterest income (loss). Proceeds from death benefits first reduce the cash surrender value attributable to the individual policy and then any additional proceeds are recorded as noninterest income. | ||||||||||||
Income Taxes - Heartland and its subsidiaries file a consolidated federal income tax return and separate or combined income or franchise tax returns as required by the various states. Heartland recognizes certain income and expenses in different time periods for financial reporting and income tax purposes. The provision for deferred income taxes is based on an asset and liability approach and represents the change in deferred income tax accounts during the year, including the effect of enacted tax rate changes. A valuation allowance is provided to reduce deferred tax assets if their expected realization is deemed not to be more likely than not. | ||||||||||||
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Heartland recognizes interest and penalties related to income tax matters in income tax expense. | ||||||||||||
Derivative Financial Instruments - Heartland uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps and certain interest rate lock commitments and forward sales of securities related to mortgage banking activities. FASB Accounting Standards Codification ("ASC") Topic 815 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by ASC 815, Heartland records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. To qualify for hedge accounting, Heartland must comply with the detailed rules and documentation requirements at the inception of the hedge, and hedge effectiveness is assessed at inception and periodically throughout the life of each hedging relationship. Hedge ineffectiveness, if any, is measured periodically throughout the life of the hedging relationship. | ||||||||||||
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income and subsequently reclassified to interest income or expense when the hedged transaction affects earnings, while the ineffective portion of changes in the fair value of the derivative, if any, is recognized immediately in other noninterest income. Heartland assesses the effectiveness of each hedging relationship by comparing the cumulative changes in cash flows of the derivative hedging instrument with the cumulative changes in cash flows of the designated hedged item or transaction. No component of the change in the fair value of the hedging instrument is excluded from the assessment of hedge effectiveness. | ||||||||||||
Heartland had no fair value hedging relationships at December 31, 2014 or 2013. Derivatives not qualifying for hedge accounting, classified as free-standing derivatives, have all changes in the fair value recorded on the consolidated statements of income through noninterest income. | ||||||||||||
Heartland does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and are used to manage Heartland’s exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements of ASC 815. | ||||||||||||
Mortgage Derivatives - Heartland uses interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans and mortgage backed securities. These commitments 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. | ||||||||||||
Segment Reporting - Public business enterprises are required to report information about operating segments in financial statements and selected information about operating segments in financial reports issued to shareholders. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in determining how to allocate resources and to assess effectiveness of the segments' performance. Generally, financial information is required to be reported on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to segments. Heartland has two reporting segments, one for community banking and one for mortgage banking operations. | ||||||||||||
Fair Value Measurements - Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price concept). Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using discounted cash flow or other valuation techniques. Inputs into the valuation methods are subjective in nature, involve uncertainties, and require significant judgment and therefore cannot be determined with precision. Accordingly, the derived fair value estimates presented herein are not necessarily indicative of the amounts Heartland could realize in a current market exchange. Assets and liabilities are categorized into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Heartland's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Below is a brief description of each fair value level: | ||||||||||||
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 which 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. | ||||||||||||
Treasury Stock - Treasury stock is accounted for by the cost method, whereby shares of common stock reacquired are recorded at their purchase price. When treasury stock is reissued, any difference between the sales proceeds, or fair value when issued for business combinations, and the cost is recognized as a charge or credit to capital surplus. | ||||||||||||
Trust Department Assets - Property held for customers in fiduciary or agency capacities is not included in the accompanying consolidated balance sheets, as such items are not assets of the Heartland banks. | ||||||||||||
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 years ended December 31, 2014, 2013 and 2012, are shown in the table below: | ||||||||||||
(Dollars and number of shares in thousands, except per share data) | 2014 | 2013 | 2012 | |||||||||
Net income attributable to Heartland | $ | 41,900 | $ | 36,789 | $ | 49,792 | ||||||
Preferred dividends and discount | (817 | ) | (1,093 | ) | (3,400 | ) | ||||||
Net income available to common stockholders | $ | 41,083 | $ | 35,696 | $ | 46,392 | ||||||
Weighted average common shares outstanding for basic earnings per share | 18,462 | 17,199 | 16,518 | |||||||||
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 280 | 261 | 251 | |||||||||
Weighted average common shares for diluted earnings per share | 18,742 | 17,460 | 16,769 | |||||||||
Earnings per common share — basic | $ | 2.23 | $ | 2.08 | $ | 2.81 | ||||||
Earnings per common share — diluted | $ | 2.19 | $ | 2.04 | $ | 2.77 | ||||||
Number of antidilutive stock options excluded from diluted earnings per share computation | 88 | 99 | 106 | |||||||||
Subsequent Events - Heartland has evaluated subsequent events that may require recognition or disclosure through the filing date of this annual report on Form 10-K with the SEC. On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin. See Note 2, "Acquisitions." for additional details of this acquisition. | ||||||||||||
Effect of New Financial Accounting Standards - 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. Heartland adopted this standard on January 1, 2014, and the adoption did not have a material impact on the results of operations, financial position, and liquidity. | ||||||||||||
In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." The amendments in ASU 2014-01 to Topic 323, "Equity Investments and Joint Ventures," provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. The amendments permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied retrospectively to all periods presented. Early adoption is permitted. Heartland is in the process of evaluating the impact that adoption of this guidance will have on the results of operations, financial position, and liquidity. | ||||||||||||
In January 2014, the FASB issued ASU 2014-04, "Receivables-Troubled Debt Restructurings by Creditors: Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure." The amendments in ASU 2014-04 clarify that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." The amendment clarifies the principles for recognizing revenue and develops a common revenue standard. The amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The amendment applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The amendment is effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Early application is not permitted. Heartland intends to adopt the accounting standard during the first quarter of 2017, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. | ||||||||||||
In August 2014, the FASB issued ASU 2014-14, "Receivables-Troubled Debt Restructurings by Creditors: Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure." The amendment clarifies how creditors are to classify certain government-guaranteed mortgage loans upon foreclosure. The amendment requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: (i) the loan has a government guarantee that is not separate from the loan before foreclosure, and (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured on the amount of the loan balance (principal and interest) expected to be recovered for the guarantor. This amendment is effective for annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2014, with early adoption permitted. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. | ||||||||||||
In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items." The amendment eliminates from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. | ||||||||||||
Reclassifications - In the first quarter of 2014, Heartland revised the classification of mortgage servicing rights income from loan servicing income to gain on sale of loans held for sale. The reclassification is presented in both the current and prior reporting periods. For the years ended December 31, 2013, and December 31, 2012, $12.8 million and $11.4 million, respectively, were reclassified from loan servicing income to gain on sale of loans held for sale. | ||||||||||||
In the first quarter of 2014, Heartland also made the following income statement reclassifications. Heartland separated the expense category of net loss on repossessed assets into two expense categories, other real estate and loan collection expenses and loss on sales/valuations of assets, net. Additionally, gains and losses on sales of fixed assets were reclassified from other noninterest expenses to the newly created loss on sales/valuations of assets, net. These reclassifications are presented in both the current and prior reporting periods. For the years ended December 31, 2013, and December 31, 2012, losses on sales of fixed assets of $235,000 and $14,000, respectively were reclassified from noninterest expenses to loss on sales/valuations of assets, net. | ||||||||||||
These reclassifications do not have a material impact on Heartland's financial statements and do not affect the financial results. Heartland believes these reclassifications are more consistent with industry reporting practices. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions | ACQUISITIONS | |||||||
Subsequent to December 31, 2014, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin. As of December 31, 2014, Community Bank & Trust reported assets of $530.4 million, including loans of $411.0 million and including deposits of $446.7 million. Community Banc-Corp of Sheboygan, Inc. merged into Heartland, and the shareholders of Community Banc-Corp of Sheboygan, Inc. received Heartland common stock. The aggregate purchase price was based upon 155% of the December 31, 2014 adjusted tangible book value, as defined in the merger agreement, of Community Banc-Corp of Sheboygan, Inc. The purchase price was approximately $53.1 million, which was paid by delivery of 1,970,720 shares of Heartland common stock. Simultaneously with the close of the transaction on January 16, 2015, Community Bank & Trust merged into Heartland’s Wisconsin Bank & Trust subsidiary. The transaction is intended to be a tax-free reorganization with respect to the stock consideration received by the stockholders of Community Banc-Corp of Sheboygan, Inc. | ||||||||
On October 18, 2013, Heartland completed the purchase of Morrill Bancshares, Inc., the holding company of Morrill & Janes Bank and Trust Company, based in Merriam, Kansas. Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the September 30, 2013 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. The transaction included, at fair value, total assets of $810.8 million, loans of $377.7 million, and deposits of $665.3 million. Morrill & Janes Bank and Trust Company continues to operate as a separate state-chartered bank subsidiary of Heartland. | ||||||||
The assets and liabilities of Morrill Bancshares, Inc. were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The following table represents, in thousands, the amounts recorded on the consolidated balance sheet as of October 18, 2013: | ||||||||
As of October 18, 2013 | ||||||||
Fair value of consideration paid | ||||||||
Common Stock (1,402,431 shares) | $ | 38,755 | ||||||
Cash | 16,619 | |||||||
Total consideration paid | 55,374 | |||||||
Fair value of assets acquired | ||||||||
Cash and due from banks | 61,316 | |||||||
Securities: | ||||||||
Securities available for sale | 339,362 | |||||||
Securities held to maturity | 3,086 | |||||||
Other securities | 4,139 | |||||||
Loans held for sale | 97 | |||||||
Loans held to maturity | 377,565 | |||||||
Premises, furniture and equipment, net | 4,867 | |||||||
Other real estate, net | 1,296 | |||||||
Other intangible assets, net | 8,694 | |||||||
Other assets | 5,389 | |||||||
Total assets | 805,811 | |||||||
Fair value of liabilities assumed | ||||||||
Deposits | 665,297 | |||||||
Short term borrowings | 62,450 | |||||||
Other borrowings | 22,809 | |||||||
Other liabilities | 4,837 | |||||||
Total liabilities assumed | 755,393 | |||||||
Fair value of net assets acquired | 50,418 | |||||||
Goodwill resulting from acquisition | $ | 4,956 | ||||||
Heartland recognized goodwill of $5.0 million in conjunction with the acquisition of Morrill Bancshares, Inc., which is calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies, an enhanced market area, cross-selling opportunities, and expanded product lines. See Note 8 for further information on goodwill. | ||||||||
Pro Forma Information: The following pro forma information presents the results of operations for the years ended December 31, 2013 and December 31, 2012, as if the Morrill Bancshares, Inc. acquisition occurred on January 1, 2012. | ||||||||
(Dollars in thousands, except per share data) | For the Years Ended | |||||||
31-Dec-13 | 31-Dec-12 | |||||||
Net interest income | $ | 181,310 | $ | 168,475 | ||||
Net income | $ | 39,043 | $ | 52,052 | ||||
Basic earnings per share | $ | 2.27 | $ | 3.15 | ||||
Diluted earnings per share | $ | 2.24 | $ | 3.1 | ||||
The above pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the merged companies that would have been achieved had the acquisition occurred at January 1, 2012, nor are they intended to represent or be indicative of future results of operations. The pro forma results do not include expected operating cost savings as a result of the acquisition. These pro forma results require significant estimates and judgments particularly as it relates to valuation and accretion of income associated with the acquired loans. | ||||||||
Heartland incurred $466,000 of pre-tax merger related expenses in 2013. The merger expenses are reflected on the consolidated income statement for the applicable period and are reported primarily in the categories of salaries and benefits and professional fees. | ||||||||
Acquired loans were preliminarily recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults, and recovery rates. No allowance for credit losses was carried over from the acquisition. The balance of nonaccrual loans at acquisition date was $688,000. | ||||||||
On November 22, 2013, Heartland acquired Freedom Bank ("Freedom") in Sterling, Illinois, from its parent company, River Valley Bancorp, Inc., a Davenport, Iowa-based bank holding company. The acquisition was arranged through a negotiated transfer of ownership with Dubuque Bank and Trust Company. The transaction included, at fair value, total assets of $67.1 million, loans of $39.3 million, and deposits of $54.1 million at acquisition date. On March 7, 2014, Dubuque Bank and Trust Company transferred the shares of Freedom, with no stock or cash consideration paid, to Heartland, and Freedom was simultaneously merged with Riverside Community Bank subsidiary (now Illinois Bank & Trust) by dividend. | ||||||||
The Freedom acquisition was not deemed to be significant and is therefore excluded from the pro forma information in the table above. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due from Banks | CASH AND DUE FROM BANKS |
The Heartland banks are required to maintain certain average cash reserve balances as a non-member bank of the Federal Reserve System. The reserve balance requirements at December 31, 2014 and 2013, were $172,000 and $28.7 million, respectively. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 24,010 | $ | 98 | $ | (15 | ) | $ | 24,093 | |||||||||||||||
Mortgage-backed securities | 1,219,305 | 11,929 | (11,968 | ) | 1,219,266 | |||||||||||||||||||
Obligations of states and political subdivisions | 148,450 | 5,304 | (328 | ) | 153,426 | |||||||||||||||||||
Total debt securities | 1,391,765 | 17,331 | (12,311 | ) | 1,396,785 | |||||||||||||||||||
Equity securities | 5,029 | 54 | — | 5,083 | ||||||||||||||||||||
Total | $ | 1,396,794 | $ | 17,385 | $ | (12,311 | ) | $ | 1,401,868 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 220,157 | $ | 147 | $ | (2,001 | ) | $ | 218,303 | |||||||||||||||
Mortgage-backed securities | 1,156,983 | 9,538 | (22,574 | ) | 1,143,947 | |||||||||||||||||||
Obligations of states and political subdivisions | 277,320 | 1,706 | (12,402 | ) | 266,624 | |||||||||||||||||||
Total debt securities | 1,654,460 | 11,391 | (36,977 | ) | 1,628,874 | |||||||||||||||||||
Equity securities | 4,996 | 32 | — | 5,028 | ||||||||||||||||||||
Total | $ | 1,659,456 | $ | 11,423 | $ | (36,977 | ) | $ | 1,633,902 | |||||||||||||||
At both December 31, 2014, and December 31, 2013, 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 December 31, 2014, and December 31, 2013, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 5,734 | $ | 217 | $ | (667 | ) | $ | 5,284 | |||||||||||||||
Obligations of states and political subdivisions | 278,853 | 13,576 | (945 | ) | 291,484 | |||||||||||||||||||
Total | $ | 284,587 | $ | 13,793 | $ | (1,612 | ) | $ | 296,768 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 5,973 | $ | 199 | $ | (321 | ) | $ | 5,851 | |||||||||||||||
Obligations of states and political subdivisions | 231,525 | 5,801 | (5,740 | ) | 231,586 | |||||||||||||||||||
Total | $ | 237,498 | $ | 6,000 | $ | (6,061 | ) | $ | 237,437 | |||||||||||||||
Heartland transferred $26.8 million of bank qualified municipal bonds from available for sale to held to maturity during the fourth quarter of 2014, and $180.9 million of bank qualified municipal bonds from available for sale to held to maturity during the fourth quarter of 2013. The bonds were transferred at fair value at the date of transfer. | ||||||||||||||||||||||||
At December 31, 2014, the amortized cost of the held to maturity securities is net of $797,000 of credit related OTTI and $422,000 of non-credit related OTTI. At December 31, 2013, the amortized cost of the held to maturity securities is net of $797,000 of credit related OTTI and $517,000 of non credit related OTTI. | ||||||||||||||||||||||||
Approximately 97% of Heartland's mortgage-backed securities are issuances of government-sponsored enterprises. | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available for sale at December 31, 2014 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. | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 7,335 | $ | 7,403 | ||||||||||||||||||||
Due in 1 to 5 years | 28,470 | 28,570 | ||||||||||||||||||||||
Due in 5 to 10 years | 12,664 | 12,959 | ||||||||||||||||||||||
Due after 10 years | 123,991 | 128,587 | ||||||||||||||||||||||
Total debt securities | 172,460 | 177,519 | ||||||||||||||||||||||
Mortgage-backed securities | 1,219,305 | 1,219,266 | ||||||||||||||||||||||
Equity securities | 5,029 | 5,083 | ||||||||||||||||||||||
Total investment securities | $ | 1,396,794 | $ | 1,401,868 | ||||||||||||||||||||
The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2014 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. | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 1,049 | $ | 1,098 | ||||||||||||||||||||
Due in 1 to 5 years | 13,388 | 14,038 | ||||||||||||||||||||||
Due in 5 to 10 years | 57,242 | 59,904 | ||||||||||||||||||||||
Due after 10 years | 207,174 | 216,444 | ||||||||||||||||||||||
Total debt securities | 278,853 | 291,484 | ||||||||||||||||||||||
Mortgage-backed securities | 5,734 | 5,284 | ||||||||||||||||||||||
Total investment securities | $ | 284,587 | $ | 296,768 | ||||||||||||||||||||
As of December 31, 2014, securities with a fair value of $870.7 million were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required by law. | ||||||||||||||||||||||||
Gross gains and losses realized related to sales of securities available for sale for the years ended December 31, 2014, 2013, and 2012 are summarized as follows, in thousands: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Available for Sale Securities sold: | ||||||||||||||||||||||||
Proceeds from sales | $ | 791,767 | $ | 546,532 | $ | 576,083 | ||||||||||||||||||
Gross security gains | 5,871 | 8,895 | 15,387 | |||||||||||||||||||||
Gross security losses | 2,203 | 1,774 | 1,389 | |||||||||||||||||||||
The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of December 31, 2014 and December 31, 2013. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2014, and December 31, 2013, 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 | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 6,042 | $ | (15 | ) | $ | — | $ | — | $ | 6,042 | $ | (15 | ) | ||||||||||
Mortgage-backed securities | 327,363 | (7,391 | ) | 306,078 | (4,577 | ) | 633,441 | (11,968 | ) | |||||||||||||||
Obligations of states and political subdivisions | 886 | (6 | ) | 20,507 | (322 | ) | 21,393 | (328 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 334,291 | $ | (7,412 | ) | $ | 326,585 | $ | (4,899 | ) | $ | 660,876 | $ | (12,311 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 196,345 | $ | (2,001 | ) | $ | — | $ | — | $ | 196,345 | $ | (2,001 | ) | ||||||||||
Mortgage-backed securities | 640,684 | (17,064 | ) | 118,229 | (5,510 | ) | 758,913 | (22,574 | ) | |||||||||||||||
Obligations of states and political subdivisions | 196,987 | (11,452 | ) | 10,714 | (950 | ) | 207,701 | (12,402 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 1,034,016 | $ | (30,517 | ) | $ | 128,943 | $ | (6,460 | ) | $ | 1,162,959 | $ | (36,977 | ) | |||||||||
Securities held to maturity | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 2,761 | $ | (667 | ) | $ | 2,761 | $ | (667 | ) | ||||||||||
Obligations of states and political subdivisions | 3,172 | (422 | ) | 29,402 | (523 | ) | 32,574 | (945 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 3,172 | $ | (422 | ) | $ | 32,163 | $ | (1,190 | ) | $ | 35,335 | $ | (1,612 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 2,170 | $ | (319 | ) | $ | 834 | $ | (2 | ) | $ | 3,004 | $ | (321 | ) | |||||||||
Obligations of states and political subdivisions | 47,175 | (3,508 | ) | 21,505 | (2,232 | ) | 68,680 | (5,740 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 49,345 | $ | (3,827 | ) | $ | 22,339 | $ | (2,234 | ) | $ | 71,684 | $ | (6,061 | ) | |||||||||
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 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. Heartland had not previously recorded an OTTI loss on debt securities. | ||||||||||||||||||||||||
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 published credit ratings of these securities and the stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or widening market spreads due to insurance company downgrades and not underlying credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, 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 December 31, 2014 or December 31, 2013. | ||||||||||||||||||||||||
The following table shows the detail of total OTTI write-downs included in earnings, in thousands: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
OTTI write-downs included in earnings: | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
OTTI on debt securities | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Mortgage-backed securities | — | — | 683 | |||||||||||||||||||||
Accretion of non-credit related impairment | (95 | ) | (95 | ) | (71 | ) | ||||||||||||||||||
Total changes to AOCI for non-credit related impairment | (95 | ) | (95 | ) | 612 | |||||||||||||||||||
Total OTTI losses (accretion) recorded on debt securities | $ | (95 | ) | $ | (95 | ) | $ | 1,593 | ||||||||||||||||
Included in other securities at December 31, 2014 and 2013, were shares of stock in each Federal Home Loan Bank (the "FHLB") of Des Moines, Chicago, Dallas, San Francisco, Seattle and Topeka at an amortized cost of $14.3 million and $15.6 million, respectively. | ||||||||||||||||||||||||
The Heartland banks are required to maintain FHLB stock as members of the various FHLBs as required by these institutions. These equity securities are "restricted" in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value approximates amortized cost. Heartland considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. Heartland evaluates impairment in these investments based on the ultimate recoverability of the par value and at December 31, 2014, did not consider the investments to be other than temporarily impaired. | ||||||||||||||||||||||||
Loans_and_Leases
Loans and Leases | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Loans and Leases | LOANS AND LEASES | |||||||||||||||||||||||||||
Loans and leases as of December 31, 2014, and December 31, 2013, were as follows, in thousands: | ||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Loans and leases receivable held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 1,036,080 | $ | 950,197 | ||||||||||||||||||||||||
Commercial real estate | 1,707,060 | 1,529,683 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 423,827 | 376,735 | ||||||||||||||||||||||||||
Residential real estate | 380,341 | 349,349 | ||||||||||||||||||||||||||
Consumer | 330,555 | 294,145 | ||||||||||||||||||||||||||
Gross loans and leases receivable held to maturity | 3,877,863 | 3,500,109 | ||||||||||||||||||||||||||
Unearned discount | (90 | ) | (168 | ) | ||||||||||||||||||||||||
Deferred loan fees | (1,028 | ) | (2,989 | ) | ||||||||||||||||||||||||
Total net loans and leases receivable held to maturity | 3,876,745 | 3,496,952 | ||||||||||||||||||||||||||
Loans covered under loss share agreements: | ||||||||||||||||||||||||||||
Commercial and commercial real estate | 54 | 2,314 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | — | 543 | ||||||||||||||||||||||||||
Residential real estate | 1,204 | 2,280 | ||||||||||||||||||||||||||
Consumer | — | 612 | ||||||||||||||||||||||||||
Total loans covered under loss share agreements | 1,258 | 5,749 | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (41,449 | ) | (41,685 | ) | ||||||||||||||||||||||||
Loans and leases receivable, net | $ | 3,836,554 | $ | 3,461,016 | ||||||||||||||||||||||||
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 for most of these loans and leases is based upon a discount from its market value. 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 first-lien 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 Parent Co., typically lends to borrowers with past credit problems or limited credit histories, which comprises approximately 21% 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 December 31, 2014 and December 31, 2013, 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 changes to the accounting for the allowance for loan and lease losses policy during 2014 or 2013. | ||||||||||||||||||||||||||||
Allowance For Loan | Gross Loans and Leases Receivable | |||||||||||||||||||||||||||
and Lease Losses | Held to Maturity | |||||||||||||||||||||||||||
Ending Balance | Ending Balance | Total | Ending Balance | Ending Balance | Total | |||||||||||||||||||||||
Under ASC | Under ASC | Evaluated for Impairment | Evaluated for Impairment | |||||||||||||||||||||||||
310-10-35 | 450-20 | Under ASC | Under ASC | |||||||||||||||||||||||||
310-10-35 | 450-20 | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Commercial | $ | 754 | $ | 11,155 | $ | 11,909 | $ | 4,526 | $ | 1,031,554 | $ | 1,036,080 | ||||||||||||||||
Commercial real estate | 636 | 15,262 | 15,898 | 35,771 | 1,671,289 | 1,707,060 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 52 | 3,243 | 3,295 | 5,049 | 418,778 | 423,827 | ||||||||||||||||||||||
Residential real estate | 442 | 3,299 | 3,741 | 10,235 | 370,106 | 380,341 | ||||||||||||||||||||||
Consumer | 813 | 5,793 | 6,606 | 6,143 | 324,412 | 330,555 | ||||||||||||||||||||||
Total | $ | 2,697 | $ | 38,752 | $ | 41,449 | $ | 61,724 | $ | 3,816,139 | $ | 3,877,863 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 2,817 | $ | 10,282 | $ | 13,099 | $ | 14,644 | $ | 935,553 | $ | 950,197 | ||||||||||||||||
Commercial real estate | 818 | 13,334 | 14,152 | 28,299 | 1,501,384 | 1,529,683 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 756 | 2,236 | 2,992 | 16,667 | 360,068 | 376,735 | ||||||||||||||||||||||
Residential real estate | 605 | 3,115 | 3,720 | 7,214 | 342,135 | 349,349 | ||||||||||||||||||||||
Consumer | 1,721 | 6,001 | 7,722 | 5,137 | 289,008 | 294,145 | ||||||||||||||||||||||
Total | $ | 6,717 | $ | 34,968 | $ | 41,685 | $ | 71,961 | $ | 3,428,148 | $ | 3,500,109 | ||||||||||||||||
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 December 31, 2014, and December 31, 2013, in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at December 31, 2014, and December 31, 2013. | ||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 24,205 | $ | 29,313 | ||||||||||||||||||||||||
Nonaccrual troubled debt restructured loans | 865 | 13,081 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 25,070 | $ | 42,394 | ||||||||||||||||||||||||
Accruing loans past due 90 days or more | — | 24 | ||||||||||||||||||||||||||
Performing troubled debt restructured loans | $ | 12,133 | $ | 19,353 | ||||||||||||||||||||||||
Heartland had $13.0 million of troubled debt restructured loans at December 31, 2014, of which $865,000 were classified as nonaccrual and $12.1 million were accruing according to the restructured terms. Heartland had $32.5 million of troubled debt restructured loans at December 31, 2013, of which $13.1 million were classified as nonaccrual and $19.4 million were accruing according to the restructured terms. | ||||||||||||||||||||||||||||
The following table provides information on troubled debt restructured loans that were modified during the years ended December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial | — | $ | — | $ | — | 4 | $ | 17,934 | $ | 17,934 | ||||||||||||||||||
Commercial real estate | 2 | 357 | 357 | 5 | 1,797 | 1,797 | ||||||||||||||||||||||
Total commercial and commercial real estate | 2 | 357 | 357 | 9 | 19,731 | 19,731 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 2 | 3,357 | 3,357 | 8 | 4,349 | 4,349 | ||||||||||||||||||||||
Residential real estate | 5 | 757 | 757 | 4 | 762 | 762 | ||||||||||||||||||||||
Consumer | — | — | — | 1 | 166 | 166 | ||||||||||||||||||||||
Total | 9 | $ | 4,471 | $ | 4,471 | 22 | $ | 25,008 | $ | 25,008 | ||||||||||||||||||
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. Included in the troubled debt restructured loans for the year ended December 31, 2013 are four commercial real estate loans totaling $1.6 million which were acquired with the acquisitions in the fourth quarter of 2013. At December 31, 2014, there were no commitments to extend credit to any of the borrowers with an existing TDR. | ||||||||||||||||||||||||||||
The following table provides information on troubled debt restructured loans for which there was a payment default during the years ended December 31, 2014 and December 31, 2013, in thousands, that had been modified during the 12-month period prior to the default: | ||||||||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||
Commercial | — | $ | — | 3 | $ | 11,598 | ||||||||||||||||||||||
Commercial real estate | 1 | 55 | 1 | 480 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 1 | 55 | 4 | 12,078 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | — | — | 2 | 165 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 55 | 6 | $ | 12,243 | ||||||||||||||||||||||
For the year ended December 31, 2013, acquired commercial loans totaling $61,000 and acquired commercial real estate loans totaling $480,000 are included in the table above. These loans were acquired in the fourth quarter of 2013. | ||||||||||||||||||||||||||||
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 December 31, 2014, Heartland had no loans 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 December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||||||||||||
Pass | Nonpass | Total | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Commercial | $ | 939,717 | $ | 96,363 | $ | 1,036,080 | ||||||||||||||||||||||
Commercial real estate | 1,567,711 | 139,349 | 1,707,060 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 2,507,428 | 235,712 | 2,743,140 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 402,883 | 20,944 | 423,827 | |||||||||||||||||||||||||
Residential real estate | 361,325 | 19,016 | 380,341 | |||||||||||||||||||||||||
Consumer | 321,114 | 9,441 | 330,555 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 3,592,750 | $ | 285,113 | $ | 3,877,863 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | $ | 871,825 | $ | 78,372 | $ | 950,197 | ||||||||||||||||||||||
Commercial real estate | 1,390,820 | 138,863 | 1,529,683 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 2,262,645 | 217,235 | 2,479,880 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 335,821 | 40,914 | 376,735 | |||||||||||||||||||||||||
Residential real estate | 333,161 | 16,188 | 349,349 | |||||||||||||||||||||||||
Consumer | 284,148 | 9,997 | 294,145 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 3,215,775 | $ | 284,334 | $ | 3,500,109 | ||||||||||||||||||||||
The nonpass category in the table above is comprised of approximately 66% special mention and 34% substandard as of December 31, 2014. The percent of nonpass loans on nonaccrual status as of December 31, 2014, was 9%. As of December 31, 2013, the nonpass category in the table above was comprised of approximately 59% special mention, 38% substandard, and 3% doubtful. The percent of nonpass loans on nonaccrual status as of December 31, 2013, was 15%. The doubtful loan category at December 31, 2013 consisted of one loan, which was on nonaccrual, and had a specific reserve of $2.2 million. Loans delinquent 30-89 days as a percentage of total loans were .21% at December 31, 2014, and .30% at December 31, 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 December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||||||||||||
Accruing Loans and Leases | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Current | Nonaccrual | Total Loans | ||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | and Leases | ||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Commercial | $ | 980 | $ | 48 | $ | — | $ | 1,028 | $ | 1,032,707 | $ | 2,345 | $ | 1,036,080 | ||||||||||||||
Commercial real estate | 1,788 | 111 | — | 1,899 | 1,693,554 | 11,607 | 1,707,060 | |||||||||||||||||||||
Total commercial and commercial real estate | 2,768 | 159 | — | 2,927 | 2,726,261 | 13,952 | 2,743,140 | |||||||||||||||||||||
Agricultural and agricultural real estate | 119 | 50 | — | 169 | 422,219 | 1,439 | 423,827 | |||||||||||||||||||||
Residential real estate | 1,037 | 445 | — | 1,482 | 371,982 | 6,877 | 380,341 | |||||||||||||||||||||
Consumer | 2,382 | 1,366 | — | 3,748 | 324,005 | 2,802 | 330,555 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 6,306 | $ | 2,020 | $ | — | $ | 8,326 | $ | 3,844,467 | $ | 25,070 | $ | 3,877,863 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 697 | $ | 741 | $ | — | $ | 1,438 | $ | 935,508 | $ | 13,251 | $ | 950,197 | ||||||||||||||
Commercial real estate | 3,042 | 199 | 24 | 3,265 | 1,511,618 | 14,800 | 1,529,683 | |||||||||||||||||||||
Total commercial and commercial real estate | 3,739 | 940 | 24 | 4,703 | 2,447,126 | 28,051 | 2,479,880 | |||||||||||||||||||||
Agricultural and agricultural real estate | 818 | — | — | 818 | 369,907 | 6,010 | 376,735 | |||||||||||||||||||||
Residential real estate | 1,199 | 56 | — | 1,255 | 342,735 | 5,359 | 349,349 | |||||||||||||||||||||
Consumer | 2,624 | 1,089 | — | 3,713 | 287,458 | 2,974 | 294,145 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 8,380 | $ | 2,085 | $ | 24 | $ | 10,489 | $ | 3,447,226 | $ | 42,394 | $ | 3,500,109 | ||||||||||||||
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 principal balance that was contractually due at December 31, 2014, and December 31, 2013, the outstanding loan balance recorded on the consolidated balance sheets at December 31, 2014, and December 31, 2013, any related allowance recorded for those loans as of December 31, 2014, and December 31, 2013, the average outstanding loan balance recorded on the consolidated balance sheets during the years ended December 31, 2014 and December 31, 2013, and the interest income recognized on the impaired loans during the year ended December 31, 2014, and year ended December 31, 2013, in thousands: | ||||||||||||||||||||||||||||
Unpaid | Loan | Related | Year-to-Date | Year-to-Date | ||||||||||||||||||||||||
Principal | Balance | Allowance | Avg. Loan | Interest Income | ||||||||||||||||||||||||
Balance | Recorded | Balance | Recognized | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 780 | $ | 780 | $ | 754 | $ | 5,594 | $ | 19 | ||||||||||||||||||
Commercial real estate | 7,356 | 7,322 | 636 | 5,931 | 303 | |||||||||||||||||||||||
Total commercial and commercial real estate | 8,136 | 8,102 | 1,390 | 11,525 | 322 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 3,317 | 3,317 | 52 | 3,966 | 104 | |||||||||||||||||||||||
Residential real estate | 2,412 | 2,244 | 442 | 3,398 | 12 | |||||||||||||||||||||||
Consumer | 2,799 | 2,799 | 813 | 4,053 | 19 | |||||||||||||||||||||||
Total loans held to maturity | $ | 16,664 | $ | 16,462 | $ | 2,697 | $ | 22,942 | $ | 457 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 4,913 | $ | 3,746 | $ | — | $ | 3,499 | $ | 101 | ||||||||||||||||||
Commercial real estate | 32,708 | 28,449 | — | 24,522 | 1,172 | |||||||||||||||||||||||
Total commercial and commercial real estate | 37,621 | 32,195 | — | 28,021 | 1,273 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 3,961 | 1,732 | — | 3,308 | 13 | |||||||||||||||||||||||
Residential real estate | 8,200 | 7,991 | — | 6,267 | 110 | |||||||||||||||||||||||
Consumer | 3,350 | 3,344 | — | 1,870 | 127 | |||||||||||||||||||||||
Total loans held to maturity | $ | 53,132 | $ | 45,262 | $ | — | $ | 39,466 | $ | 1,523 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 5,693 | $ | 4,526 | $ | 754 | $ | 9,093 | $ | 120 | ||||||||||||||||||
Commercial real estate | 40,064 | 35,771 | 636 | 30,453 | 1,475 | |||||||||||||||||||||||
Total commercial and commercial real estate | 45,757 | 40,297 | 1,390 | 39,546 | 1,595 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 7,278 | 5,049 | 52 | 7,274 | 117 | |||||||||||||||||||||||
Residential real estate | 10,612 | 10,235 | 442 | 9,665 | 122 | |||||||||||||||||||||||
Consumer | 6,149 | 6,143 | 813 | 5,923 | 146 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 69,796 | $ | 61,724 | $ | 2,697 | $ | 62,408 | $ | 1,980 | ||||||||||||||||||
Unpaid | Loan | Related | Year-to-Date | Year-to-Date | ||||||||||||||||||||||||
Principal | Balance | Allowance | Avg. Loan | Interest Income | ||||||||||||||||||||||||
Balance | Recorded | Balance | Recognized | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,901 | $ | 7,901 | $ | 2,817 | $ | 5,343 | $ | 38 | ||||||||||||||||||
Commercial real estate | 9,164 | 8,909 | 818 | 7,686 | 282 | |||||||||||||||||||||||
Total commercial and commercial real estate | 17,065 | 16,810 | 3,635 | 13,029 | 320 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 13,818 | 13,818 | 756 | 7,537 | 354 | |||||||||||||||||||||||
Residential real estate | 2,460 | 2,460 | 605 | 3,179 | 13 | |||||||||||||||||||||||
Consumer | 3,485 | 3,485 | 1,721 | 3,490 | 100 | |||||||||||||||||||||||
Total loans held to maturity | $ | 36,828 | $ | 36,573 | $ | 6,717 | $ | 27,235 | $ | 787 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,724 | $ | 6,743 | $ | — | $ | 9,394 | $ | 89 | ||||||||||||||||||
Commercial real estate | 24,830 | 19,390 | — | 25,676 | 538 | |||||||||||||||||||||||
Total commercial and commercial real estate | 32,554 | 26,133 | — | 35,070 | 627 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 2,849 | 2,849 | — | 9,985 | 189 | |||||||||||||||||||||||
Residential real estate | 5,345 | 4,754 | — | 4,198 | 80 | |||||||||||||||||||||||
Consumer | 1,652 | 1,652 | — | 1,515 | 37 | |||||||||||||||||||||||
Total loans held to maturity | $ | 42,400 | $ | 35,388 | $ | — | $ | 50,768 | $ | 933 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 15,625 | $ | 14,644 | $ | 2,817 | $ | 14,737 | $ | 127 | ||||||||||||||||||
Commercial real estate | 33,994 | 28,299 | 818 | 33,362 | 820 | |||||||||||||||||||||||
Total commercial and commercial real estate | 49,619 | 42,943 | 3,635 | 48,099 | 947 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 16,667 | 16,667 | 756 | 17,522 | 543 | |||||||||||||||||||||||
Residential real estate | 7,805 | 7,214 | 605 | 7,377 | 93 | |||||||||||||||||||||||
Consumer | 5,137 | 5,137 | 1,721 | 5,005 | 137 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 79,228 | $ | 71,961 | $ | 6,717 | $ | 78,003 | $ | 1,720 | ||||||||||||||||||
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. Effective October 1, 2014, loans subject to the commercial loss sharing agreement with the FDIC were no longer covered by loss sharing. 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 FDIC approved the transfer of the loss share agreements to Illinois Bank & Trust as part of the merger of Galena State Bank & Trust Co. into Illinois Bank & Trust. | ||||||||||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: | ||||||||||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||
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 | $ | — | $ | 54 | $ | 54 | $ | 549 | $ | 1,765 | $ | 2,314 | ||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | 543 | 543 | ||||||||||||||||||||||
Residential real estate | 305 | 899 | 1,204 | — | 2,280 | 2,280 | ||||||||||||||||||||||
Consumer loans | — | — | — | 538 | 74 | 612 | ||||||||||||||||||||||
Total Covered Loans | $ | 305 | $ | 953 | $ | 1,258 | $ | 1,087 | $ | 4,662 | $ | 5,749 | ||||||||||||||||
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 December 31, 2014, and December 31, 2013, 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 December 31, 2014, and December 31, 2013. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Loans are made in the normal course of business to directors, officers and principal holders of equity securities of Heartland. The terms of these loans, including interest rates and collateral, are similar to those prevailing for comparable transactions and do not involve more than a normal risk of collectability. Changes in such loans during the years ended December 31, 2014 and 2013, were as follows, in thousands: | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 113,604 | $ | 97,611 | ||||||||||||||||||||||||
Advances | 84,348 | 85,058 | ||||||||||||||||||||||||||
Repayments | (62,353 | ) | (69,065 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 135,599 | $ | 113,604 | ||||||||||||||||||||||||
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||
Changes in the allowance for loan and lease losses for the years ended December 31, 2014, 2013, and 2012 were as follows, in thousands: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of year | $ | 41,685 | $ | 38,715 | $ | 36,808 | ||||||||||||||||||
Provision for loan and lease losses | 14,501 | 9,697 | 8,202 | |||||||||||||||||||||
Recoveries on loans and leases previously charged-off | 3,990 | 4,820 | 8,209 | |||||||||||||||||||||
Loans and leases charged-off | (18,727 | ) | (11,547 | ) | (14,504 | ) | ||||||||||||||||||
Balance at end of year | $ | 41,449 | $ | 41,685 | $ | 38,715 | ||||||||||||||||||
Changes in the allowance for loan and lease losses by loan category for the years ended December 31, 2014 and December 31, 2013, were as follows, in thousands: | ||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Total | |||||||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13,099 | $ | 14,152 | $ | 2,992 | $ | 3,720 | $ | 7,722 | $ | 41,685 | ||||||||||||
Charge-offs | (8,749 | ) | (2,889 | ) | (2,251 | ) | (342 | ) | (4,496 | ) | (18,727 | ) | ||||||||||||
Recoveries | 753 | 2,290 | 11 | 148 | 788 | 3,990 | ||||||||||||||||||
Provision | 6,806 | 2,345 | 2,543 | 215 | 2,592 | 14,501 | ||||||||||||||||||
Balance at December 31, 2014 | $ | 11,909 | $ | 15,898 | $ | 3,295 | $ | 3,741 | $ | 6,606 | $ | 41,449 | ||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Total | |||||||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 11,388 | $ | 14,473 | $ | 2,138 | $ | 3,543 | $ | 7,173 | $ | 38,715 | ||||||||||||
Charge-offs | (2,460 | ) | (3,251 | ) | (23 | ) | (1,036 | ) | (4,777 | ) | (11,547 | ) | ||||||||||||
Recoveries | 1,019 | 2,378 | 110 | 158 | 1,155 | 4,820 | ||||||||||||||||||
Provision | 3,152 | 552 | 767 | 1,055 | 4,171 | 9,697 | ||||||||||||||||||
Balance at December 31, 2013 | $ | 13,099 | $ | 14,152 | $ | 2,992 | $ | 3,720 | $ | 7,722 | $ | 41,685 | ||||||||||||
Premises_Furniture_and_Equipme
Premises, Furniture and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Premises, Furniture and Equipment | PREMISES, FURNITURE AND EQUIPMENT | |||||||
Premises, furniture and equipment as of December 31, 2014, and December 31, 2013, were as follows, in thousands: | ||||||||
2014 | 2013 | |||||||
Land and land improvements | $ | 36,186 | $ | 36,679 | ||||
Buildings and building improvements | 114,824 | 115,052 | ||||||
Furniture and equipment | 56,247 | 54,393 | ||||||
Total | 207,257 | 206,124 | ||||||
Less accumulated depreciation | (76,544 | ) | (70,410 | ) | ||||
Premises, furniture and equipment, net | $ | 130,713 | $ | 135,714 | ||||
Depreciation expense on premises, furniture and equipment was $8.4 million, $7.7 million and $6.4 million for 2014, 2013, and 2012, respectively. |
Goodwill_Core_Deposit_Intangib
Goodwill, Core Deposit Intangibles and Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill, Core Deposit Intangibles and Other Intangible Assets | GOODWILL, CORE DEPOSIT INTANGIBLES AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
Heartland had goodwill of $35.6 million at both December 31, 2014, and December 31, 2013. | ||||||||||||||||||||||||
Heartland recorded $5.0 million of goodwill in connection with the acquisition of Morrill Bancshares, Inc., the holding company for Morrill & Janes Bank and Trust Company, based in Merriam, Kansas on October 18, 2013. The goodwill associated with this transaction is not deductible for tax purposes. As part of this acquisition, Heartland recognized core deposit intangibles of $8.5 million that are expected to be amortized over a period of 8 years. The core deposit intangibles associated with this transaction are not deductible for tax purposes. | ||||||||||||||||||||||||
Heartland recorded no goodwill in conjunction with the Freedom Bank acquisition. In conjunction with the Freedom Bank acquisition, Heartland recognized core deposit intangibles of $890,000 that are expected to be amortized over a period of 8 years. The core deposit intangibles associated with this transaction are not deductible for tax purposes. | ||||||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, are presented in the table below, in thousands: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||
Core deposit intangibles | $ | 21,069 | $ | 12,525 | $ | 8,544 | $ | 21,069 | $ | 10,345 | $ | 10,724 | ||||||||||||
Mortgage servicing rights | 37,825 | 12,841 | 24,984 | 32,160 | 10,372 | 21,788 | ||||||||||||||||||
Customer relationship intangible | 1,177 | 773 | 404 | 1,177 | 730 | 447 | ||||||||||||||||||
Total | $ | 60,071 | $ | 26,139 | $ | 33,932 | $ | 54,406 | $ | 21,447 | $ | 32,959 | ||||||||||||
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 | |||||||||||||||||||||
Year ending December 31, | ||||||||||||||||||||||||
2015 | $ | 1,780 | $ | 6,246 | $ | 42 | $ | 8,068 | ||||||||||||||||
2016 | 1,575 | 5,354 | 41 | 6,970 | ||||||||||||||||||||
2017 | 1,393 | 4,462 | 40 | 5,895 | ||||||||||||||||||||
2018 | 1,232 | 3,569 | 39 | 4,840 | ||||||||||||||||||||
2019 | 1,056 | 2,678 | 38 | 3,772 | ||||||||||||||||||||
Thereafter | 1,508 | 2,675 | 204 | 4,387 | ||||||||||||||||||||
Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of December 31, 2014. Heartland's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were $3.50 billion and $3.05 billion as of December 31, 2014, and December 31, 2013, respectively. Custodial escrow balances maintained in connection with the mortgage loan servicing portfolio were approximately $15.2 million and $12.8 million as of December 31, 2014 and December 31, 2013, respectively. The fair value of Heartland's mortgage servicing rights was estimated at $34.2 million and $32.0 million at December 31, 2014, and December 31, 2013, respectively. | ||||||||||||||||||||||||
Heartland's mortgage servicing rights portfolio is comprised of loans serviced for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association. The servicing rights portfolio is separated into 15- and 30-year tranches. At both December 31, 2014, and December 31, 2013, no valuation allowance was required for any of the tranches. | ||||||||||||||||||||||||
The fair value of mortgage servicing rights is calculated based upon a discounted cash flow analysis. Cash flow assumptions, including prepayment speeds, servicing costs and escrow earnings are considered in the calculation. The average constant prepayment rate was 11.40% and 9.65% for the valuations for December 31, 2014, and December 31, 2013, respectively. The discount rate was 9.20% and 10.15% for the valuations for December 31, 2014, and December 31, 2013, respectively. The capitalization rate for 2014 ranged from .75 to 1.39 basis points and for 2013 from .79 to 1.39 basis points. Fees collected for the servicing of mortgage loans for others were $8.8 million, $6.9 million and $4.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Balance at January 1 | $ | 21,788 | $ | 15,653 | ||||||||||||||||||||
Originations | 8,618 | 12,769 | ||||||||||||||||||||||
Amortization | (5,422 | ) | (7,314 | ) | ||||||||||||||||||||
Purchased MSR | — | 184 | ||||||||||||||||||||||
Valuation adjustment | — | 496 | ||||||||||||||||||||||
Balance at December 31 | $ | 24,984 | $ | 21,788 | ||||||||||||||||||||
Fair value of mortgage servicing rights | $ | 34,219 | $ | 31,965 | ||||||||||||||||||||
Mortgage servicing rights, net to servicing portfolio | 0.71 | % | 0.72 | % |
Deposits
Deposits | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Banking and Thrift [Abstract] | ||||||||||||
Deposits | DEPOSITS | |||||||||||
At December 31, 2014, the scheduled maturities of time certificates of deposit were as follows, in thousands: | ||||||||||||
2015 | $ | 425,049 | ||||||||||
2016 | 178,921 | |||||||||||
2017 | 84,628 | |||||||||||
2018 | 32,732 | |||||||||||
2019 | 48,747 | |||||||||||
Thereafter | 15,259 | |||||||||||
$ | 785,336 | |||||||||||
The aggregate amount of time certificates of deposit in denominations of $100,000 or more as of December 31, 2014 and December 31, 2013, were $327.1 million and $354.2 million, respectively. | ||||||||||||
Interest expense on deposits for the years ended December 31, 2014, 2013, and 2012, was as follows, in thousands: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Savings and money market accounts | $ | 8,042 | $ | 6,674 | $ | 6,736 | ||||||
Time certificates of deposit in denominations of $100,000 or more | 3,474 | 4,403 | 4,776 | |||||||||
Other time deposits | 6,638 | 8,891 | 10,718 | |||||||||
Interest expense on deposits | $ | 18,154 | $ | 19,968 | $ | 22,230 | ||||||
Shortterm_Borrowings
Short-term Borrowings | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Short-term Borrowings | SHORT-TERM BORROWINGS | |||||||||||
Short-term borrowings, which Heartland defines as borrowings with an original maturity of one year or less, as of December 31, 2014 and 2013, were as follows, in thousands: | ||||||||||||
2014 | 2013 | |||||||||||
Securities sold under agreement to repurchase | $ | 240,214 | $ | 234,659 | ||||||||
Federal funds purchased | 14,050 | 69,097 | ||||||||||
Advances from the FHLB | 76,000 | 105,000 | ||||||||||
Total | $ | 330,264 | $ | 408,756 | ||||||||
At both December 31, 2014 and December 31, 2013, Heartland had one credit line with an unaffiliated bank with revolving borrowing capacity of $20.0 million. No balance was outstanding at December 31, 2014 and 2013. | ||||||||||||
The agreement with the lender of the revolving credit line of $20.0 million and the term loan (as indicated in Note 11) contains specific financial covenants, all of which Heartland was in compliance with at December 31, 2014 and 2013: | ||||||||||||
• | Heartland will maintain regulatory capital at well capitalized levels on a consolidated basis. | |||||||||||
• | Heartland will maintain on a consolidated basis a minimum return on average assets of at least .50% tested quarterly on a rolling four-quarter basis. | |||||||||||
• | On a consolidated basis, Heartland's nonperforming assets to Tier 1 capital and allowance for loan and lease losses will not exceed 30%, measured continuously. | |||||||||||
• | Heartland will maintain on a consolidated basis a minimum allowance for loan and lease losses to gross loans and leases ratio of 1.00%. Credit valuations for acquired loans are included in this covenant calculation. | |||||||||||
• | Heartland will inform the lender of any material regulatory non-compliance or written agreement concerning Heartland or any of its subsidiaries. | |||||||||||
• | A senior officer of Heartland will submit a written quarterly statement of compliance with the financial covenants established under the credit agreement. | |||||||||||
All retail repurchase agreements as of December 31, 2014 and 2013 were due within twelve months. | ||||||||||||
Average and maximum balances and rates on aggregate short-term borrowings outstanding during the years ended December 31, 2014, December 31, 2013, and December 31, 2012 were as follows, in thousands: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Maximum month-end balance | $ | 420,494 | $ | 408,756 | $ | 298,662 | ||||||
Average month-end balance | 307,470 | 274,352 | 248,048 | |||||||||
Weighted average interest rate for the year | 0.28 | % | 0.31 | % | 0.32 | % | ||||||
Weighted average interest rate at year-end | 0.19 | % | 0.19 | % | 0.31 | % | ||||||
Dubuque Bank and Trust Company is a participant in the Borrower-In-Custody of Collateral Program at the Federal Reserve Bank of Chicago, which provides the capability to borrow short-term funds under the Discount Window Program. Advances under this program were collateralized by a portion of the commercial loan portfolio of Dubuque Bank and Trust Company in the amount of $73.0 million at December 31, 2014, and $100.8 million at December 31, 2013. There were no borrowings under the Discount Window Program outstanding at year-end 2014 and 2013. |
Other_Borrowings
Other Borrowings | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Other Borrowings | OTHER BORROWINGS | |||||||||||||
Other borrowings, which Heartland defines as borrowings with an original maturity date of more than one year, outstanding at December 31, 2014 and 2013 were as follows, in thousands: | ||||||||||||||
2014 | 2013 | |||||||||||||
Advances from the FHLB; weighted average call dates at December 31, 2014 and 2013 were July 2015 and October 2014, respectively; and weighted average interest rates were 2.35% and 3.06%, respectively | $ | 109,830 | $ | 113,453 | ||||||||||
Wholesale repurchase agreements; weighted average call dates at December 31, 2014 and 2013 were May 2015 and April 2014, respectively; and weighted average interest rates were 3.62% and 3.38%, respectively | 45,000 | 60,000 | ||||||||||||
Trust preferred securities | 125,065 | 124,860 | ||||||||||||
Senior notes | 29,500 | 37,500 | ||||||||||||
Note payable to unaffiliated bank | 10,369 | 11,719 | ||||||||||||
Contracts payable for purchase of real estate and other assets | 2,541 | 2,577 | ||||||||||||
Subordinated notes | 73,950 | — | ||||||||||||
Total | $ | 396,255 | $ | 350,109 | ||||||||||
The Heartland banks are members of the FHLB of Des Moines, Chicago, Dallas, San Francisco, Seattle and Topeka. The advances from the FHLB are collateralized by the Heartland banks' investments in FHLB stock of $12.0 million and $14.2 million at December 31, 2014 and 2013, respectively. In addition, the FHLB advances are collateralized with pledges of one- to four-family residential mortgages, commercial and agricultural mortgages and securities totaling $1.48 billion at December 31, 2014, and $1.32 billion at December 31, 2013. At December 31, 2014, Heartland had $426.6 million of remaining FHLB borrowing capacity. | ||||||||||||||
Heartland has entered into various wholesale repurchase agreements which had balances totaling $45.0 million and $60.0 million at December 31, 2014 and 2013, respectively. A schedule of Heartland's wholesale repurchase agreements outstanding as of December 31, 2014, were as follows, in thousands: | ||||||||||||||
Amount | Interest Rate as | Issue | Maturity | Callable | ||||||||||
of 12/31/14(1) | Date | Date | Date | |||||||||||
Counterparty: | ||||||||||||||
Citigroup Global Markets | $ | 15,000 | 3.32 | % | 4/17/08 | 4/17/15 | 4/17/15 | |||||||
Citigroup Global Markets | 20,000 | 3.61 | % | (2) | 4/17/08 | 4/17/18 | 4/17/15 | |||||||
Barclays Capital | 10,000 | 4.07 | % | 7/1/08 | 7/1/18 | 7/1/15 | ||||||||
$ | 45,000 | |||||||||||||
(1) Interest rates are fixed with the exception of the interest rate on the $20.0 million transaction with Citigroup Global Markets. | ||||||||||||||
(2) Interest rate resets quarterly on the 17th of January, April, July and October of each year until maturity. Embedded within the contract is a cap interest rate of 3.61%. | ||||||||||||||
At December 31, 2014, Heartland had seven wholly-owned trust subsidiaries that were formed to issue trust preferred securities, which includes two wholly-owned trust subsidiaries acquired with the Morrill Bancshares, Inc. acquisition in 2013. The proceeds from the offerings were used to purchase junior subordinated debentures from Heartland and were in turn used by Heartland for general corporate purposes. Heartland has the option to shorten the maturity date to a date not earlier than the callable date. Heartland may not shorten the maturity date without prior approval of the Board of Governors of the Federal Reserve System, if required. Prior redemption is permitted under certain circumstances, such as changes in tax or regulatory capital rules. In connection with these offerings, the balance of deferred issuance costs included in other assets was $197,000 as of December 31, 2014. These deferred costs are amortized on a straight-line basis over the life of the debentures. The majority of the interest payments are due quarterly. A schedule of Heartland’s trust preferred offerings outstanding as of December 31, 2014, were as follows, in thousands: | ||||||||||||||
Amount | Interest | Interest Rate as | Maturity | Callable | ||||||||||
Issued | Rate | of 12/31/14(1) | Date | Date | ||||||||||
Heartland Financial Statutory Trust III | $ | 20,619 | 8.25% | 8.25 | % | 10/10/33 | 3/31/15 | |||||||
Heartland Financial Statutory Trust IV | 25,774 | 2.75% over LIBOR | 2.99 | % | (2) | 3/17/34 | 3/17/15 | |||||||
Heartland Financial Statutory Trust V | 20,619 | 1.33% over LIBOR | 1.56 | % | (3) | 4/7/36 | 4/7/15 | |||||||
Heartland Financial Statutory Trust VI | 20,619 | 6.75% | 6.75 | % | (4) | 9/15/37 | 3/15/15 | |||||||
Heartland Financial Statutory Trust VII | 20,619 | 1.48% over LIBOR | 1.72 | % | (5) | 9/1/37 | 6/1/15 | |||||||
Morrill Statutory Trust I | 8,618 | 3.25% over LIBOR | 3.5 | % | (6) | 12/26/32 | 3/26/15 | |||||||
Morrill Statutory Trust II | 8,197 | 2.85% over LIBOR | 3.09 | % | (7) | 12/17/33 | 12/17/15 | |||||||
$ | 125,065 | |||||||||||||
(1) Effective weighted average interest rate as of December 31, 2014, was 6.00% due to interest rate swap transactions on the variable rate securities as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(2) Effective interest rate as of December 31, 2014, was 5.00% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(3) Effective interest rate as of December 31, 2014, was 4.69% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(4) Interest rate is fixed at 6.75% through June 15, 2017 then resets to 1.48% over LIBOR for the remainder of the term. | ||||||||||||||
(5) Effective interest rate as of December 31, 2014, was 4.70% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(6) Effective interest rate as of December 31, 2014, was 4.92% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(7) Effective interest rate as of December 31, 2014, was 4.51% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
For regulatory purposes, $125.1 million and $124.9 million of the trust preferred securities qualified as Tier 1 capital as of December 31, 2014 and 2013, respectively. | ||||||||||||||
Subsequent to December 31, 2014, Heartland elected to redeem Statutory Trust III. Notice was given to the trustee on February 2, 2015, and the redemption is expected to occur on March 31, 2015. No early redemption fees will be incurred. | ||||||||||||||
Between 2010 and 2012, Heartland completed private debt offerings of its senior notes. The notes were sold in a private placement to various accredited investors. The senior notes are unsecured and bear interest at 5% per annum payable quarterly. During 2014, Heartland offered senior note investors the options for prepayment, resulting in the prepayment of $8.0 million of these senior notes. | ||||||||||||||
The maturity schedule of the senior notes is such that $14.5 million mature on December 1, 2015; and $5.0 million will mature on each of February 1, 2017, February 1, 2018; and on February 1, 2019. Total senior notes outstanding were $29.5 million as of December 31, 2014, and $37.5 million as of December 31, 2013. | ||||||||||||||
On April 20, 2011, Heartland entered into a $15.0 million amortizing term loan with an unaffiliated bank with a maturity date of April 20, 2016. At the time of origination, Heartland entered into an interest rate swap transaction designated as a cash flow hedge, with the bank to fix the term loan at 5.14% for the full five-year term. | ||||||||||||||
On December 17, 2014, Heartland issued $75.0 million of subordinated notes with a maturity date of December 30, 2024. The notes were issued at par with an underwriting discount of $1.1 million. The interest rate on the notes is fixed at 5.75% per annum payable semi-annually. The notes were sold to qualified institutional buyers, and the proceeds are being used for general corporate purposes. For regulatory purposes, $74.0 million of the subordinated notes qualified as Tier 2 capital as of December 31, 2014. In connection with this offering, the balance of deferred issuance costs included in other assets was $353,000 at December 31, 2014. These deferred costs are amortized on a straight-line basis over the life of the notes. | ||||||||||||||
Future payments at December 31, 2014, for other borrowings follow in the table below, in thousands. Callable FHLB advances and wholesale repurchase agreements are included in the table at their call date. | ||||||||||||||
2015 | $ | 152,782 | ||||||||||||
2016 | 19,548 | |||||||||||||
2017 | 10,197 | |||||||||||||
2018 | 5,147 | |||||||||||||
2019 | 5,694 | |||||||||||||
Thereafter | 202,887 | |||||||||||||
Total | $ | 396,255 | ||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
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 movement 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 $5.3 million and $5.4 million of cash as collateral at December 31, 2014, and December 31, 2013, respectively. Heartland's counterparties were required to pledge $0 at December 31, 2014 and $540,000 at December 31, 2013, respectively. | ||||||||||||||||||
Heartland's derivative and hedging instruments are recorded at fair value on the consolidated balance sheets. See Note 20, “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 twelve months ended December 31, 2014, 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 $2.2 million. For the next twelve months, Heartland estimates that cash payments and reclassification from accumulated other comprehensive income to interest expense will total $2.3 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. | ||||||||||||||||||
Heartland entered into three forward-starting interest rate swap transactions during 2009 to effectively convert Heartland Financial Statutory Trust IV, V and VII, which are variable interest rate subordinated debentures, to fixed interest rate debt. During the first quarter of 2014, the interest rate swap transaction on Heartland Financial Statutory Trust IV expired. Prior to the expiration of the swap, Heartland entered into a new forward-starting interest rate swap to replace the expiring swap. In addition, Heartland added two new forward starting interest rate swap transactions to effectively convert the debt of Morrill Statutory Trust I and Morrill Statutory Trust II, which total $16.8 million, from variable interest rate subordinated debentures to fixed interest rate debt. For accounting purposes, these five 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 $85.0 million of Heartland's subordinated debentures 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 December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||
Notional | Fair | Balance Sheet | Receive | Weighted Average | Maturity | |||||||||||||
Amount | Value | Category | Rate | Pay Rate | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate swap | $ | 10,369 | $ | (248 | ) | Other Liabilities | 2.915 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (534 | ) | Other Liabilities | 0.243 | % | 2.255 | % | 3/17/21 | |||||||||
Interest rate swap | 20,000 | (1,046 | ) | Other Liabilities | 0.234 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,748 | ) | Other Liabilities | 0.232 | % | 3.355 | % | 1/7/20 | |||||||||
Interest rate swap | 10,000 | (35 | ) | Other Liabilities | 0.255 | % | 1.674 | % | 3/26/19 | |||||||||
Interest rate swap | 10,000 | (35 | ) | Other Liabilities | 0.243 | % | 1.658 | % | 3/18/19 | |||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate swap | $ | 11,719 | $ | (457 | ) | Other Liabilities | 2.917 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (146 | ) | Other Liabilities | 0.244 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (1,507 | ) | Other Liabilities | 0.239 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,587 | ) | Other Liabilities | 0.243 | % | 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 year ended December 31, 2014, and December 31, 2013, 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) | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate swap | $ | 209 | Interest Expense | $ | (252 | ) | Other Income | $ | — | |||||||||
Interest rate swap | (534 | ) | Interest Expense | (386 | ) | Other Income | — | |||||||||||
Interest rate swap | 461 | Interest Expense | (604 | ) | Other Income | — | ||||||||||||
Interest rate swap | (161 | ) | Interest Expense | (632 | ) | Other Income | — | |||||||||||
Interest rate swap | (35 | ) | Interest Expense | (110 | ) | Other Income | — | |||||||||||
Interest rate swap | (35 | ) | Interest Expense | (109 | ) | Other Income | — | |||||||||||
Interest rate swap | 146 | Interest Expense | (146 | ) | Other Income | — | ||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate swap | $ | 254 | Interest Expense | $ | (276 | ) | Other Income | $ | — | |||||||||
Interest rate swap | 562 | Interest Expense | (583 | ) | Other Income | — | ||||||||||||
Interest rate swap | 679 | Interest Expense | (594 | ) | Other Income | — | ||||||||||||
Interest rate swap | 1,433 | Interest Expense | (616 | ) | 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 December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||
Notional | Fair | Balance Sheet | ||||||||||||||||
Amount | Value | Category | ||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | $ | 74,863 | $ | 2,496 | Other Assets | |||||||||||||
Forward commitments | 88,484 | 275 | Other Assets | |||||||||||||||
Forward commitments | 218,337 | (1,619 | ) | Other Liabilities | ||||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | $ | 63,370 | $ | 1,809 | Other Assets | |||||||||||||
Forward commitments | 117,637 | 1,206 | Other Assets | |||||||||||||||
Forward commitments | 53,277 | (133 | ) | Other Liabilities | ||||||||||||||
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 year ended December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||
Income Statement Category | Year-to-Date | |||||||||||||||||
Gain(Loss) | ||||||||||||||||||
Recognized | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on Sale of Loans Held for Sale | $ | 2,422 | |||||||||||||||
Forward commitments | Gains on Sale of Loans Held for Sale | (2,417 | ) | |||||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on Sale of Loans Held for Sale | $ | (10,518 | ) | ||||||||||||||
Forward commitments | Gains on Sale of Loans Held for Sale | 1,832 | ||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income taxes for the years ended December 31, 2014, 2013, and 2012 were as follows, in thousands: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 5,833 | $ | 5,025 | $ | 11,513 | ||||||
State | 3,633 | 2,549 | 5,366 | |||||||||
Total current | $ | 9,466 | $ | 7,574 | $ | 16,879 | ||||||
Deferred: | ||||||||||||
Federal | $ | 2,703 | $ | 2,447 | $ | 404 | ||||||
State | 927 | 314 | 101 | |||||||||
Total deferred | $ | 3,630 | $ | 2,761 | $ | 505 | ||||||
Total income tax expense | $ | 13,096 | $ | 10,335 | $ | 17,384 | ||||||
The income tax provisions above do not include the effects of income tax deductions resulting from exercises of stock options and the vesting of stock awards in the amounts of $124,000, $98,000, and $222,000 in 2014, 2013, and 2012 respectively, which were recorded as increases to stockholders’ equity. | ||||||||||||
Temporary differences between the amounts reported in the financial statements and the tax basis of assets and liabilities result in deferred taxes. Deferred tax assets and liabilities at December 31, 2014 and 2013, were as follows, in thousands: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Tax effect of net unrealized loss on securities available for sale reflected in stockholders’ equity | $ | — | $ | 9,766 | ||||||||
Tax effect of net unrealized loss on derivatives reflected in stockholders’ equity | 1,162 | 1,270 | ||||||||||
Securities | 35 | 1,257 | ||||||||||
Allowance for loan and lease losses | 15,346 | 15,766 | ||||||||||
Deferred compensation | 6,384 | 4,674 | ||||||||||
Organization and acquisitions costs | 366 | 393 | ||||||||||
Net operating loss carryforwards | 5,149 | 4,463 | ||||||||||
Non-accrual loan interest | 691 | 830 | ||||||||||
OREO writedowns | 1,106 | 1,781 | ||||||||||
Rehab tax credit projects | 3,547 | 2,438 | ||||||||||
Mortgage repurchase obligation | 330 | 882 | ||||||||||
Self-funded health plan | 578 | — | ||||||||||
Other | 183 | 778 | ||||||||||
Gross deferred tax assets | 34,877 | 44,298 | ||||||||||
Valuation allowance | (6,333 | ) | (4,615 | ) | ||||||||
Total deferred tax assets | $ | 28,544 | $ | 39,683 | ||||||||
Deferred tax liabilities: | ||||||||||||
Tax effect of net unrealized gain on securities available for sale reflected in stockholders’ equity | $ | (2,427 | ) | $ | — | |||||||
Premises, furniture and equipment | (8,569 | ) | (8,660 | ) | ||||||||
Tax bad debt reserves | (21 | ) | (523 | ) | ||||||||
Purchase accounting | (5,787 | ) | (5,323 | ) | ||||||||
Prepaid expenses | (514 | ) | (621 | ) | ||||||||
Mortgage servicing rights | (10,355 | ) | (8,996 | ) | ||||||||
Deferred loan fees | (1,267 | ) | (75 | ) | ||||||||
Other | (375 | ) | (324 | ) | ||||||||
Gross deferred tax liabilities | $ | (29,315 | ) | $ | (24,522 | ) | ||||||
Net deferred tax asset (liability) | $ | (771 | ) | $ | 15,161 | |||||||
The deferred tax assets (liabilities) related to net unrealized gains (losses) on securities available for sale and the deferred tax assets and liabilities related to net unrealized gains (losses) on derivatives had no effect on income tax expense as these gains and losses, net of taxes, were recorded in other comprehensive income. In 2013, Heartland had a federal low-income housing tax credit carryforward of $212,000 that expires in 2033, and an alternative minimum tax (“AMT”) credit carryforward of $467,000, which are both expected to be utilized on Heartland's federal income tax return for 2014. As a result of acquisitions, Heartland had net operating loss carryforwards for federal income tax purposes of approximately $5.4 million at December 31, 2014, and $6.0 million at December 31, 2013. The associated deferred tax asset was $1.8 million at December 31, 2014, and $2.0 million at December 31, 2013. These net carryforwards expire beginning December 31, 2026, through December 31, 2033, and are subject to an annual limitation of approximately $516,000. Net operating loss carryforwards for state income tax purposes were approximately $59.9 million at December 31, 2014, and $41.6 million at December 31, 2013. The associated deferred tax asset, net of federal tax, was $3.3 million at December 31, 2014, and $2.4 million at December 31, 2013. These carryforwards expire beginning December 31, 2021, through December 31, 2033. A valuation allowance against the deferred tax asset due to the uncertainty surrounding the utilization of these state net operating loss carryforwards was $3.1 million at December 31, 2014, and $2.2 million at December 31, 2013. During both 2014 and 2013, Heartland had book writedowns on investments that, for tax purposes, would generate capital losses upon disposal. Due to the uncertainty of Heartland's ability to utilize the potential capital losses, a valuation allowance for these potential losses totaled $3.4 million at December 31, 2014, and $2.4 million at December 31, 2013. Realization of the deferred tax asset over time is dependent upon the existence of taxable income in carryback periods or the ability to generate sufficient taxable income in future periods. In determining that realization of the deferred tax asset was more likely than not, Heartland gave consideration to a number of factors including its taxable income during carryback periods, its recent earnings history, its expectations for earnings in the future and, where applicable, the expiration dates associated with its tax carryforwards. | ||||||||||||
The actual income tax expense from continuing operations differs from the expected amounts (computed by applying the U.S. federal corporate tax rate of 35% to income before income taxes) as follows, in thousands: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed “expected” tax on net income | $ | 19,249 | $ | 16,493 | $ | 23,511 | ||||||
Increase (decrease) resulting from: | ||||||||||||
Nontaxable interest income | (6,246 | ) | (5,622 | ) | (4,539 | ) | ||||||
State income taxes, net of federal tax benefit | 2,964 | 1,861 | 3,099 | |||||||||
Tax credits | (3,819 | ) | (1,696 | ) | (6,669 | ) | ||||||
Valuation allowance | 853 | 209 | 1,851 | |||||||||
Other | 95 | (910 | ) | 131 | ||||||||
Income taxes | $ | 13,096 | $ | 10,335 | $ | 17,384 | ||||||
Effective tax rates | 23.8 | % | 21.9 | % | 25.9 | % | ||||||
Heartland's income taxes included federal historic rehabilitation tax credits totaling $3.1 million during 2014 and $898,000 during 2013. Additionally, investments in certain low-income housing partnerships at Dubuque Bank and Trust Company totaled $4.0 million at December 31, 2014, $4.3 million at December 31, 2013, and $4.5 million at December 31, 2012. These investments generated federal low-income housing tax credits of $755,000 for the year ended December 31, 2014, and $798,000 for the years ended December 31, 2013 and 2012. These investments are expected to generate federal low-income housing tax credits of approximately $581,000 for 2016 through 2019 and $241,000 for 2020. | ||||||||||||
On December 31, 2014, the amount of unrecognized tax benefits was $706,000, including $101,000 of accrued interest and penalties. On December 31, 2013, the amount of unrecognized tax benefits was $779,000, including $96,000 of accrued interest and penalties. If recognized, the entire amount of the unrecognized tax benefits would affect the effective tax rate. A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended December 31, 2014 and 2013, follows, in thousands: | ||||||||||||
2014 | 2013 | |||||||||||
Balance at January 1 | $ | 779 | $ | 773 | ||||||||
Additions for tax positions related to the current year | 71 | 65 | ||||||||||
Additions for tax positions related to prior years | 37 | 188 | ||||||||||
Reductions for tax positions related to prior years | (181 | ) | (247 | ) | ||||||||
Balance at December 31 | $ | 706 | $ | 779 | ||||||||
The tax years ended December 31, 2011, and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended December 31, 2010, and later remain open for examination. An income tax review is currently underway with the Illinois Department of Revenue for the years 2010 and 2011. During 2014, an income tax review was completed with the Colorado Department of Revenue for the years 2008 through 2011, which resulted in a net tax payment of $104,000. Heartland does not anticipate any significant increase or decrease in unrecognized tax benefits during the next twelve months. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS |
Heartland sponsors a defined contribution retirement plan covering substantially all employees. Contributions to this plan are subject to approval by the Heartland Board of Directors. The Heartland subsidiaries fund and record as an expense all approved contributions. Costs of these contributions, charged to operating expenses, were $2.9 million, $2.6 million, and $2.6 million for 2014, 2013, and 2012, respectively. This plan includes an employee savings program, under which the Heartland subsidiaries make matching contributions of up to 3% of the participants’ wages in 2014, 2013, and 2012. Costs charged to operating expenses with respect to the matching contributions were $2.1 million, $1.9 million, and $1.6 million for 2014, 2013, and 2012, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES | |||
Heartland leases certain land and facilities under operating leases. Minimum future rental commitments at December 31, 2014 for all non-cancelable leases were as follows, in thousands: | ||||
2015 | $ | 4,194 | ||
2016 | 4,060 | |||
2017 | 2,971 | |||
2018 | 2,354 | |||
2019 | 1,920 | |||
Thereafter | 12,220 | |||
$ | 27,719 | |||
Rental expense for premises and equipment leased under operating leases was $5.5 million, $4.4 million, and $2.8 million for 2014, 2013, and 2012, respectively. Some of the Heartland banks lease or sublease portions of the office space they own to third parties. Occupancy expense is presented net of rental income of $503,000, $505,000, and $496,000 for 2014, 2013, and 2012, respectively. | ||||
Heartland utilizes a variety of financial instruments in the normal course of business to meet the financial needs of customers and to manage its exposure to fluctuations in interest rates. These financial instruments include lending related and other commitments as indicated below as well as derivative instruments shown in Note 12. The Heartland banks make various commitments and incur certain contingent liabilities that are not presented in the accompanying consolidated financial statements. The commitments and contingent liabilities include various guarantees, commitments to extend credit and standby letters of credit. | ||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Heartland banks evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Heartland banks upon extension of credit, is based upon management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit and financial guarantees written are conditional commitments issued by the Heartland banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. At December 31, 2014, and December 31, 2013, commitments to extend credit aggregated $1.42 billion and $1.14 billion, respectively, and standby letters of credit aggregated $38.9 million and $39.7 million, respectively. | ||||
Heartland enters into commitments to sell mortgage loans to reduce interest rate risk on certain mortgage loans held for sale and loan commitments which were recorded in the consolidated balance sheets at their fair values. Heartland does not anticipate any material loss as a result of the commitments and contingent liabilities. Residential mortgage loans sold to others are predominantly conventional residential first lien mortgages originated under Heartland's usual underwriting procedures, and are most often sold on a nonrecourse basis. Heartland's agreements to sell residential mortgage loans in the normal course of business, primarily to GSE's, which usually require certain representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently are untrue or breached, could require Heartland to repurchase certain loans affected. Heartland had a recorded repurchase obligation of $850,000 and $2.3 million at December 31, 2014, and December 31, 2013, respectively. | ||||
Heartland has a loss reserve for unfunded commitments, including loan commitments and letters of credit. At December 31, 2014 and December 31, 2013, the reserve for unfunded commitments, which is included in other liabilities on the consolidated balance sheets, was approximately $44,000 and $78,000, respectively. The appropriateness of the reserve for unfunded commitments is reviewed on a quarterly basis, based upon changes in the amounts of commitments, delinquencies and economic conditions. | ||||
There are certain legal proceedings pending against Heartland and its subsidiaries at December 31, 2014, that are ordinary routine litigation incidental to business. While the ultimate outcome of current legal proceedings cannot be predicted with certainty, it is the opinion of management that the resolution of these legal actions should not have a material effect on Heartland's consolidated financial position or results of operations. |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock-based Compensation | 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 other equity-based incentive awards, under its 2012 Long-Term Incentive Plan (the "Plan"). The Plan, which was approved by stockholders in May 2012 and replaces Heartland's 2005 Long-Term Incentive Plan with respect to grants after such approval, reserved 388,874 shares of common stock at December 31, 2014 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. | |||||||||||||||||||||
The cost of employee services received in exchange for an award of equity instruments is measured based upon the fair value of the award on the grant date and is recognized in the income statement over the vesting period of the award. The fair value of stock options is estimated on the date of the grant using the Black-Scholes model. The fair 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 the grant. | |||||||||||||||||||||
Options | |||||||||||||||||||||
Although the Plan provides authority to the Compensation Committee to grant stock options, no options were granted during the years ended December 31, 2014, 2013 and 2012. Prior to 2009, options were typically granted annually with an expiration date 10 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. 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 options are granted or, if greater, the par value of a share of stock. A summary of the status of the stock options as of December 31, 2014, 2013, and 2012, and changes during the years ended December 31, 2014 2013, and 2012, follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | ||||||||||||||||
Outstanding at January 1 | 261,936 | $ | 23.6 | 377,907 | $ | 22.62 | 570,762 | $ | 21.06 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Exercised | (24,334 | ) | 20.2 | (96,921 | ) | 19.73 | (172,521 | ) | 17.39 | ||||||||||||
Forfeited | (21,751 | ) | 24.97 | (19,050 | ) | 23.79 | (20,334 | ) | 23.42 | ||||||||||||
Outstanding at December 31 | 215,851 | $ | 23.85 | 261,936 | $ | 23.6 | 377,907 | $ | 22.62 | ||||||||||||
Options exercisable at December 31 | 215,851 | $ | 23.85 | 261,936 | $ | 23.6 | 333,024 | $ | 23.16 | ||||||||||||
At December 31, 2014, the vested options have a weighted average remaining contractual life of 2.06 years. The intrinsic value for the vested options as of December 31, 2014, was $926,000. The intrinsic value for the total of all options exercised during year ended December 31, 2014, was $168,000. The total fair value of shares under stock options that vested during the year ended December 31, 2014, was $0. Total compensation costs recorded for stock options were $0, $10,000, and $157,000 for 2014, 2013, and 2012, respectively. | |||||||||||||||||||||
Cash received from options exercised for the year ended December 31, 2014, was $491,000, with a related tax benefit of $124,000. Cash received from options exercised for the year ended December 31, 2013, was $1.9 million, with a related tax benefit of $98,000. | |||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
The Plan also permits the Compensation Committee to grant other stock-based benefits, including restricted stock units (“RSUs”). Since 2011 the Compensation Committee has granted both time-based and performance-based RSUs under the Plan. On March 11, 2014, the Compensation Committee granted time-based RSUs with respect to 67,190 shares of common stock and on January 22, 2013, granted time-based RSUs with respect to 72,595 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 granted in 2014 vest upon a "qualified retirement" (as defined in the RSU agreement) while the RSUs granted in 2013 allow the Compensation Committee to exercise its discretion to provide for vesting upon retirement. In both cases, the retiree is required to sign a non-solicitation and non-compete agreement as a condition of vesting. | |||||||||||||||||||||
In addition to the RSUs referenced in the preceding paragraph, the Compensation Committee granted performance-based RSUs with respect to 32,645 shares of common stock on March 11, 2014, and performance-based RSUs with respect to 40,990 shares of common stock on January 22, 2013, to Heartland executives and subsidiary presidents. These RSUs vest based first on performance measures tied to Heartland's earnings and loan growth on December 31, 2014 for the 2014 RSUs, and earnings and assets on December 31, 2013, for the 2013 RSUs, and then on time-based vesting conditions. For the grants in 2014, vesting occurs on December 31, 2016, if the executive remains employed on that date, and for the grants in 2013, vesting occurs on December 31, 2015, subject to employment on that date. | |||||||||||||||||||||
The Compensation Committee also has the authority to issue shares in conjunction with employment agreements for executive level employees and may also elect to compensate members of the Board of Directors by awarding RSUs. During the year ended December 31, 2014, 31,725 RSUs were granted under this authority. During the years ended December 31, 2013, and 2012, 13,100 and 5,200 RSUs, respectively, were granted in relation to employment agreement or board members. The related compensation expense recorded for board members was $442,000, $127,000, and $90,000 for the respective years. | |||||||||||||||||||||
A summary of the status of RSUs as of December 31, 2014, 2013, and 2012, and changes during the years ended December 31, 2014, 2013, and 2012, follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding at January 1 | 353,070 | $ | 18.48 | 348,897 | $ | 15.75 | 211,279 | $ | 15.79 | ||||||||||||
Granted | 131,560 | 26.71 | 126,685 | 26.92 | 149,002 | 16.36 | |||||||||||||||
Vested | (73,554 | ) | 16.65 | (43,388 | ) | 17 | — | — | |||||||||||||
Forfeited | (14,521 | ) | 20.48 | (79,124 | ) | 20.79 | (11,384 | ) | 16.03 | ||||||||||||
Outstanding at December 31 | 396,555 | $ | 21.48 | 353,070 | $ | 18.48 | 348,897 | $ | 15.75 | ||||||||||||
The total fair value of shares under RSUs that vested during the year ended December 31, 2014, was $1.5 million. Total compensation costs recorded for RSUs were $2.9 million, $1.7 million and $1.8 million, for 2014, 2013, and 2012, respectively. As of December 31, 2014, there were $2.5 million of total unrecognized compensation costs related to the 2012 Long-Term Incentive Plan for RSUs which are expected to be recognized through 2016. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
Heartland also maintains an employee stock purchase plan (the “ESPP”), adopted in 2006, that permits all eligible employees to purchase shares of Heartland common stock at a price of not less than 95% of the fair market value (as determined by the Compensation Committee) on the determination date. A maximum of 500,000 shares is available for purchase under the ESPP. For the year ended December 31, 2014, 21,679 shares were purchased under the 2006 ESPP. For the year ended December 31, 2013, 23,239 shares were purchased under the 2006 ESPP. For the year ended December 31, 2012, 42,879 shares were purchased under the 2006 ESPP. Under ASC Topic 718, compensation expense related to the ESPP of $32,000 was recorded in 2014, $194,000 was recorded in 2013, and $151,000 was recorded in 2012 because the price of the shares purchased was set at the beginning of the year for the purchases at the end of the year. |
Stockholder_Rights_Plan
Stockholder Rights Plan | 12 Months Ended |
Dec. 31, 2014 | |
Temporary Equity Disclosure [Abstract] | |
Stockholder Rights Plan | STOCKHOLDER RIGHTS PLAN |
Heartland adopted an Amended and Restated Rights Agreement (the "Extended Rights Plan"), dated as of January 17, 2012, which became effective upon approval by the stockholders on May 16, 2012. The primary purpose of the Extended Rights Plan was to extend the term of the Rights Agreement dated as of June 7, 2002, for an additional ten years and to expand the definition of beneficial owners to include certain forms of indirect ownership. Under the terms of the Extended Rights Plan, a preferred share purchase right (a "Right") is automatically issued with each outstanding share of Heartland common stock and, unless redeemed or unless there is a "Distribution Date," the Rights trade with the shares of common stock until expiration of the Plan on January 17, 2022. Each Right entitles the holder to purchase from Heartland one-thousandth of a share of Series A Junior Participating Preferred Stock, $1.00 value (the "Preferred Stock"), at a price of $70.00 per one one-thousandth of a share of Preferred Stock, subject to adjustment (the "Purchase Price"). The Rights are not currently exercisable, and will not become exercisable until a Distribution Date. | |
The Preferred Stock has a preferential quarterly dividend rate equal to the greater of $1.00 per share or 1,000 times the dividend declared on one share of the Common Stock, a preference over common stock in liquidation equal to the greater of $1,000 per share or 1,000 times the payment made on one share of common stock, 1,000 votes per share voting together with the common stock, customary anti-dilution provisions and other rights that approximate the rights of one share of common stock. | |
The Rights separate from the common stock and become exercisable only on the tenth day (the "Distribution Date") following the earlier of (i) a public announcement that a person or group of affiliated or associated persons (subject to certain exclusions, “Acquiring Persons”) has commenced an offer to acquire “beneficial ownership” of 15% or more of our outstanding common stock, or (ii) actual acquisition of this level of beneficial ownership. | |
If any person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right, other than Rights that were or are beneficially owned by the Acquiring Person (which will thereafter be void), will have the right to receive upon exercise that number of shares of Common Stock having a market value of two times the Purchase Price. | |
In 2002, when the Rights Plan was originally created, Heartland designated 16,000 shares, par value $1.00 per share, of Series A Junior Participating preferred stock. There are no shares issued and outstanding and Heartland does not anticipate issuing any shares of Series A Junior Participating preferred stock except as may be required under the Extended Rights Plan. |
Capital_Issuance_and_Redemptio
Capital Issuance and Redemption | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Capital Issuance and Redemption | CAPITAL ISSUANCE AND REDEMPTION |
Preferred Stock | |
On September 15, 2011, Heartland entered into a Securities Purchase Agreement ("Purchase Agreement") with the Secretary of the Treasury ("Treasury"), pursuant to which Heartland issued and sold to Treasury 81,698 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series C ("Series C Preferred Stock"), having a liquidation preference of $1,000 per share ("Liquidation Amount"), for aggregate proceeds of $81.7 million. The issuance was made pursuant to the Small Business Lending Fund ("SBLF"), a $30 billion fund established under the Small Business Jobs Act of 2010 that encourages lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion. | |
The Series C Preferred Stock qualifies as Tier 1 capital for Heartland. Non-cumulative dividends are payable quarterly on the Series C Preferred Stock, beginning October 1, 2011. The dividend rate is calculated as a percentage of the aggregate Liquidation Amount of the outstanding Series C Preferred Stock and is based on changes in the level of Qualified Small Business Lending (“QSBL”). Based upon Heartland's level of QSBL compared to the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period, which is from the date of issuance through September 30, 2011, was set at 5.00%. Because of increases in the QSBL, the dividend rate on Heartland's $81.7 million preferred stock issued to the U.S. Treasury declined from 5.00% to 2.00% for the first quarter of 2013 and was reduced to 1.00% through March 15, 2016. If the Series C Preferred Stock is not redeemed before that date, the dividend rate on the Series C Preferred Stock will increase to 9% on March 16, 2016 and remain at that rate until redeemed. | |
The Series C Preferred Stock is non-voting, except in limited circumstances. In the event that Heartland misses five dividend payments, whether or not consecutive, the holder of the Series C Preferred Stock will have the right, but not the obligation, to appoint a representative as an observer on Heartland's Board of Directors. In the event that Heartland misses six dividend payments, whether or not consecutive, and if the then outstanding aggregate Liquidation Amount of the Series C Preferred Stock is at least $25.0 million, then the holder of the Series C Preferred Stock will have the right to designate two directors to the Board of Directors of Heartland. Heartland may redeem the shares of Series C Preferred Stock, in whole or in part, at any time at a redemption price equal to the sum of the Liquidation Amount per share and the per share amount of any unpaid dividends for the then-current period, subject to any required prior approval by Heartland's primary federal banking regulator. | |
The terms of the Series C Preferred Stock impose limits on Heartland's ability to pay dividends on and repurchase shares of its common stock and other securities. In general, Heartland may declare and pay dividends on its common stock or any other stock junior to the Series C Preferred Stock, or repurchase shares of any such stock, only if after payment of such dividends or repurchase of such shares, Heartland's Tier 1 Capital would be at least $247.7 million. If, however Heartland fails to declare and pay dividends on the Series C Preferred Stock in a given quarter, then during such quarter and for the next three quarters following such missed dividend payment Heartland may not pay dividends on or repurchase any common stock or any other securities that are junior to (or in parity with) the Series C Preferred Stock, except in very limited circumstances. If any Series C Preferred Stock remains outstanding on the 10th anniversary of issuance, Heartland may not pay any further dividends on its common stock or any other junior stock until the Series C Preferred Stock is redeemed in full. | |
Shelf Registration | |
Heartland filed a shelf registration statement with the SEC on August 28, 2013, which became effective on September 9, 2013, to register up to $75 million in equity securities. The shelf registration statement provides Heartland with the ability to raise capital, subject to SEC rules and limitations, if Heartland’s board of directors decides to do so. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements and Restrictions on Subsidiary Dividends | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||
Regulatory Capital Requirements and Restrictions on Subsidiary Dividends | REGULATORY CAPITAL REQUIREMENTS AND RESTRICTIONS ON SUBSIDIARY DIVIDENDS | |||||||||||||||||||
The Heartland banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Heartland banks’ financial statements. The regulations prescribe specific capital adequacy guidelines that involve quantitative measures of a bank’s assets, liabilities and certain off balance sheet items as calculated under regulatory accounting practices. Capital classification is also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | ||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Heartland banks to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2014 and 2013, that the Heartland banks met all capital adequacy requirements to which they were subject. | ||||||||||||||||||||
As of December 31, 2014 and 2013, the FDIC categorized each of the Heartland banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Heartland banks must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed each institution’s category. | ||||||||||||||||||||
The Heartland banks’ actual capital amounts and ratios are also presented in the tables below, in thousands: | ||||||||||||||||||||
Actual | For Capital | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Adequacy Purposes | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 703,032 | 15.73 | % | $ | 357,513 | 8 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 145,587 | 11.92 | 97,676 | 8 | 122,094 | 10 | % | |||||||||||||
Galena State Bank & Trust Co. | 27,644 | 13.39 | 16,517 | 8 | 20,646 | 10 | ||||||||||||||
Illinois Bank & Trust | 42,937 | 13.8 | 24,891 | 8 | 31,113 | 10 | ||||||||||||||
Wisconsin Bank & Trust | 62,780 | 12.71 | 39,522 | 8 | 49,403 | 10 | ||||||||||||||
New Mexico Bank & Trust | 97,742 | 13.04 | 59,953 | 8 | 74,941 | 10 | ||||||||||||||
Arizona Bank & Trust | 51,287 | 14.57 | 28,151 | 8 | 35,189 | 10 | ||||||||||||||
Rocky Mountain Bank | 47,848 | 12.78 | 29,958 | 8 | 37,447 | 10 | ||||||||||||||
Summit Bank & Trust | 12,544 | 11.8 | 8,503 | 8 | 10,628 | 10 | ||||||||||||||
Minnesota Bank & Trust | 15,267 | 12.43 | 9,823 | 8 | 12,279 | 10 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 65,224 | 12.02 | 43,417 | 8 | 54,271 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 578,564 | 12.95 | % | $ | 178,757 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 136,178 | 11.15 | 48,838 | 4 | 73,257 | 6 | % | |||||||||||||
Galena State Bank & Trust Co. | 26,111 | 12.65 | 8,258 | 4 | 12,387 | 6 | ||||||||||||||
Illinois Bank & Trust | 39,721 | 12.77 | 12,445 | 4 | 18,668 | 6 | ||||||||||||||
Wisconsin Bank & Trust | 57,551 | 11.65 | 19,761 | 4 | 29,642 | 6 | ||||||||||||||
New Mexico Bank & Trust | 90,870 | 12.13 | 29,977 | 4 | 44,965 | 6 | ||||||||||||||
Arizona Bank & Trust | 48,009 | 13.64 | 14,076 | 4 | 21,114 | 6 | ||||||||||||||
Rocky Mountain Bank | 44,394 | 11.86 | 14,979 | 4 | 22,468 | 6 | ||||||||||||||
Summit Bank & Trust | 11,213 | 10.55 | 4,251 | 4 | 6,377 | 6 | ||||||||||||||
Minnesota Bank & Trust | 14,151 | 11.53 | 4,911 | 4 | 7,367 | 6 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 62,918 | 11.59 | 21,709 | 4 | 32,563 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||
Consolidated | $ | 578,564 | 9.75 | % | $ | 237,316 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 136,178 | 9.5 | 57,359 | 4 | 71,699 | 5 | % | |||||||||||||
Galena State Bank & Trust Co. | 26,111 | 8.97 | 11,648 | 4 | 14,560 | 5 | ||||||||||||||
Illinois Bank & Trust | 39,721 | 8.02 | 19,820 | 4 | 24,775 | 5 | ||||||||||||||
Wisconsin Bank & Trust | 57,551 | 8.85 | 26,018 | 4 | 32,523 | 5 | ||||||||||||||
New Mexico Bank & Trust | 90,870 | 8.22 | 44,232 | 4 | 55,290 | 5 | ||||||||||||||
Arizona Bank & Trust | 48,009 | 10.25 | 18,737 | 4 | 23,421 | 5 | ||||||||||||||
Rocky Mountain Bank | 44,394 | 9.53 | 18,625 | 4 | 23,281 | 5 | ||||||||||||||
Summit Bank & Trust | 11,213 | 8.44 | 5,317 | 4 | 6,647 | 5 | ||||||||||||||
Minnesota Bank & Trust | 14,151 | 8.9 | 6,360 | 4 | 7,950 | 5 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 62,918 | 7.34 | 34,269 | 4 | 42,836 | 5 | ||||||||||||||
Actual | For Capital | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Adequacy Purposes | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 599,038 | 14.69 | % | $ | 326,252 | 8 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 141,184 | 12.3 | 91,854 | 8 | 114,818 | 10 | % | |||||||||||||
Galena State Bank & Trust Co. | 27,398 | 13.42 | 16,328 | 8 | 20,410 | 10 | ||||||||||||||
Illinois Bank & Trust | 36,324 | 14.79 | 19,654 | 8 | 24,568 | 10 | ||||||||||||||
Wisconsin Bank & Trust | 59,747 | 13.08 | 36,556 | 8 | 45,696 | 10 | ||||||||||||||
New Mexico Bank & Trust | 96,816 | 14.82 | 52,254 | 8 | 65,317 | 10 | ||||||||||||||
Arizona Bank & Trust | 47,335 | 14.59 | 25,960 | 8 | 32,451 | 10 | ||||||||||||||
Rocky Mountain Bank | 50,314 | 14.24 | 28,257 | 8 | 35,321 | 10 | ||||||||||||||
Summit Bank & Trust | 11,600 | 12.79 | 7,253 | 8 | 9,067 | 10 | ||||||||||||||
Minnesota Bank & Trust | 14,475 | 12.13 | 9,547 | 8 | 11,933 | 10 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,559 | 13 | 37,267 | 8 | 46,583 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 537,964 | 13.19 | % | $ | 163,126 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 130,859 | 11.4 | 45,927 | 4 | 68,891 | 6 | % | |||||||||||||
Galena State Bank & Trust Co. | 25,478 | 12.48 | 8,164 | 4 | 12,246 | 6 | ||||||||||||||
Illinois Bank & Trust | 33,252 | 13.53 | 9,827 | 4 | 14,741 | 6 | ||||||||||||||
Wisconsin Bank & Trust | 54,885 | 12.01 | 18,278 | 4 | 27,417 | 6 | ||||||||||||||
New Mexico Bank & Trust | 89,601 | 13.72 | 26,127 | 4 | 39,190 | 6 | ||||||||||||||
Arizona Bank & Trust | 43,269 | 13.33 | 12,980 | 4 | 19,470 | 6 | ||||||||||||||
Rocky Mountain Bank | 46,160 | 13.07 | 14,128 | 4 | 21,193 | 6 | ||||||||||||||
Summit Bank & Trust | 10,464 | 11.54 | 3,627 | 4 | 5,440 | 6 | ||||||||||||||
Minnesota Bank & Trust | 13,384 | 11.22 | 4,773 | 4 | 7,160 | 6 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,153 | 12.91 | 18,633 | 4 | 27,950 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||
Consolidated | $ | 537,964 | 9.67 | % | $ | 222,432 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 130,859 | 8.77 | 59,717 | 4 | 74,646 | 5 | % | |||||||||||||
Galena State Bank & Trust Co. | 25,478 | 8.65 | 11,787 | 4 | 14,734 | 5 | ||||||||||||||
Illinois Bank & Trust | 33,252 | 7.42 | 17,926 | 4 | 22,407 | 5 | ||||||||||||||
Wisconsin Bank & Trust | 54,885 | 8.76 | 25,070 | 4 | 31,337 | 5 | ||||||||||||||
New Mexico Bank & Trust | 89,601 | 8.84 | 40,530 | 4 | 50,663 | 5 | ||||||||||||||
Arizona Bank & Trust | 43,269 | 10.33 | 16,757 | 4 | 20,947 | 5 | ||||||||||||||
Rocky Mountain Bank | 46,160 | 10.01 | 18,439 | 4 | 23,049 | 5 | ||||||||||||||
Summit Bank & Trust | 10,464 | 9.16 | 4,567 | 4 | 5,709 | 5 | ||||||||||||||
Minnesota Bank & Trust | 13,384 | 8.14 | 6,575 | 4 | 8,218 | 5 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,153 | 7.38 | 32,624 | 4 | 40,780 | 5 | ||||||||||||||
The ability of Heartland to pay dividends to its stockholders is dependent upon dividends paid by its subsidiaries. The Heartland banks are subject to certain statutory and regulatory restrictions on the amount they may pay in dividends. To maintain acceptable capital ratios in the Heartland banks, certain portions of their retained earnings are not available for the payment of dividends. Retained earnings that could be available for the payment of dividends to Heartland totaled approximately $205.0 million as of December 31, 2014, under the most restrictive minimum capital requirements. Retained earnings that could be available for the payment of dividends to Heartland totaled approximately $117.9 million as of December 31, 2014, under the capital requirements to remain well capitalized. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 which 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 only recorded at fair value 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. The 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 3) the fair value of the collateral if the loan is collateral dependent. In accordance with ASC 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Heartland classifies impaired loans as nonrecurring Level 3. | ||||||||||||||||||||
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. 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 December 31, 2014, and December 31, 2013, 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. | ||||||||||||||||||||
Interest rate lock commitments | ||||||||||||||||||||
Heartland uses an internal valuation model that relies on internally developed inputs to estimate the fair value of its interest rate lock commitments which is based on unobservable inputs that reflect management's assumptions and specific information about each borrower. Interest rate lock commitments are classified in Level 3 of the fair value hierarchy. | ||||||||||||||||||||
Forward commitments | ||||||||||||||||||||
The fair value of forward commitments are estimated using an internal valuation model, which includes current trade pricing for similar financial instruments 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 December 31, 2014, and December 31, 2013, 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 | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Trading securities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. government corporations and agencies | 24,093 | 2,529 | 21,564 | — | ||||||||||||||||
Mortgage-backed securities | 1,219,266 | — | 1,214,319 | 4,947 | ||||||||||||||||
Obligations of states and political subdivisions | 153,426 | — | 153,426 | — | ||||||||||||||||
Equity securities | 5,083 | — | 5,083 | — | ||||||||||||||||
Interest rate lock commitments | 2,496 | — | — | 2,496 | ||||||||||||||||
Forward commitments | 275 | — | 275 | — | ||||||||||||||||
Total assets at fair value | $ | 1,404,639 | $ | 2,529 | $ | 1,394,667 | $ | 7,443 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative financial instruments | $ | 3,646 | $ | — | $ | 3,646 | $ | — | ||||||||||||
Forward commitments | 1,619 | — | 1,619 | — | ||||||||||||||||
Total liabilities at fair value | $ | 5,265 | $ | — | $ | 5,265 | $ | — | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Trading securities | $ | 1,801 | $ | 1,801 | $ | — | $ | — | ||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. government corporations and agencies | 218,303 | 4,084 | 214,219 | — | ||||||||||||||||
Mortgage-backed securities | 1,143,947 | — | 1,140,649 | 3,298 | ||||||||||||||||
Obligations of states and political subdivisions | 266,624 | — | 266,624 | — | ||||||||||||||||
Equity securities | 5,028 | — | 5,028 | — | ||||||||||||||||
Interest rate lock commitments | 1,809 | — | — | 1,809 | ||||||||||||||||
Forward commitments | 1,206 | — | 1,206 | — | ||||||||||||||||
Total assets at fair value | $ | 1,638,718 | $ | 5,885 | $ | 1,627,726 | $ | 5,107 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative financial instruments | $ | 3,697 | $ | — | $ | 3,697 | $ | — | ||||||||||||
Forward commitments | 133 | — | 133 | — | ||||||||||||||||
Total liabilities at fair value | $ | 3,830 | $ | — | $ | 3,830 | $ | — | ||||||||||||
The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: | ||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 1,033 | $ | — | $ | — | $ | 1,033 | $ | 659 | ||||||||||
Commercial real estate | 12,584 | — | — | 12,584 | 492 | |||||||||||||||
Agricultural and agricultural real estate | 552 | — | — | 552 | 2,229 | |||||||||||||||
Residential real estate | 3,173 | — | — | 3,173 | — | |||||||||||||||
Consumer | 2,003 | — | — | 2,003 | 22 | |||||||||||||||
Total collateral dependent impaired loans | $ | 19,345 | $ | — | $ | — | $ | 19,345 | $ | 3,402 | ||||||||||
Other real estate owned | $ | 19,016 | $ | — | $ | — | $ | 19,016 | $ | 1,938 | ||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 7,229 | $ | — | $ | — | $ | 7,229 | $ | 919 | ||||||||||
Commercial real estate | 7,749 | — | — | 7,749 | 1,881 | |||||||||||||||
Agricultural and agricultural real estate | 13,062 | — | — | 13,062 | — | |||||||||||||||
Residential real estate | 3,396 | — | — | 3,396 | — | |||||||||||||||
Consumer | 1,763 | — | — | 1,763 | — | |||||||||||||||
Total collateral dependent impaired loans | $ | 33,199 | $ | — | $ | — | $ | 33,199 | $ | 2,800 | ||||||||||
Other real estate owned | $ | 29,852 | $ | — | $ | — | $ | 29,852 | $ | 2,799 | ||||||||||
The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: | ||||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/14 | Technique | Input | (Weighted Average) | |||||||||||||||||
Z-TRANCHE Securities | $ | 4,947 | Discounted cash flows | Pretax discount rate | 7 - 9% | |||||||||||||||
Actual defaults | 15.60 - 30.60% (24.50%) | |||||||||||||||||||
Actual deferrals | 7.20 - 17.30% (12.90%) | |||||||||||||||||||
Interest rate lock commitments | 2,496 | Fair Value of | Closing ratio | -1 | ||||||||||||||||
Underlying Loan to | ||||||||||||||||||||
Secondary Market | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 1,033 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Commercial real estate | 12,584 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Agricultural and agricultural real estate | 552 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Residential real estate | 3,173 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Consumer | 2,003 | Modified appraised value | Third party valuation | -2 | ||||||||||||||||
Valuation discount | -2 | |||||||||||||||||||
Other real estate owned | 19,016 | Modified appraised value | Disposal costs | -2 | ||||||||||||||||
Third party appraisal | -2 | |||||||||||||||||||
Appraisal discounts | -2 | |||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2014 was 84%. | ||||||||||||||||||||
(2) 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 | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/13 | Technique | Input | (Weighted Average) | |||||||||||||||||
Z-TRANCHE Securities | $ | 3,298 | Discounted cash flows | Pretax discount rate | 7 - 9% | |||||||||||||||
Actual defaults | 12.50 - 28.20% (20.80%) | |||||||||||||||||||
Actual deferrals | 5.10 - 16.00% (11.10%) | |||||||||||||||||||
Interest rate lock commitments | 1,809 | Fair Value of | Closing ratio | -1 | ||||||||||||||||
Underlying Loan to | ||||||||||||||||||||
Secondary Market | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 7,229 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Commercial real estate | 7,749 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Agricultural and agricultural real estate | 13,062 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Residential real estate | 3,396 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Consumer | 1,763 | Modified appraised value | Third party valuation | -2 | ||||||||||||||||
Valuation discount | -2 | |||||||||||||||||||
Other real estate owned | 29,852 | Modified appraised value | Disposal costs | -2 | ||||||||||||||||
Third party appraisal | -2 | |||||||||||||||||||
Appraisal discounts | -2 | |||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2013 was 87%. | ||||||||||||||||||||
(2) 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 the Z-TRANCHE, a Level 3 asset, that is measured at fair value on a recurring basis is summarized in the following table, in thousands: | ||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Balance at January 1, | $ | 3,298 | $ | 4,089 | ||||||||||||||||
Total gains (losses), net: | ||||||||||||||||||||
Included in earnings | — | (1,587 | ) | |||||||||||||||||
Included in other comprehensive income | 1,783 | 826 | ||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||
Purchases | — | — | ||||||||||||||||||
Sales | — | — | ||||||||||||||||||
Settlements | (134 | ) | (30 | ) | ||||||||||||||||
Balance at period end, | $ | 4,947 | $ | 3,298 | ||||||||||||||||
The changes in fair value of the interest rate lock commitments, which are Level 3 financial instruments and are measured on a recurring basis, are summarized in the following table, in thousands: | ||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Balance at January 1, | $ | 1,809 | $ | 9,353 | ||||||||||||||||
Total gains (losses), net, included in earnings | 2,422 | (10,518 | ) | |||||||||||||||||
Issuances | 2,038 | 9,821 | ||||||||||||||||||
Settlements | (3,773 | ) | (6,847 | ) | ||||||||||||||||
Balance at period end, | $ | 2,496 | $ | 1,809 | ||||||||||||||||
Gains included in gains (losses) on sales of loans held for sale attributable to interest rate lock commitments held at December 31, 2014, and December 31, 2013, were $2.5 million and $1.8 million, respectively. | ||||||||||||||||||||
The table below is a summary of the estimated fair value of Heartland's financial instruments as defined by ASC 825 as of December 31, 2014, and December 31, 2013, in thousands. The carrying amounts in the following table 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 below 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 below 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 | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
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 | $ | 73,871 | $ | 73,871 | $ | 73,871 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | 2,605 | 2,605 | 2,605 | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | — | — | — | — | — | |||||||||||||||
Available for sale | 1,401,868 | 1,401,868 | 2,529 | 1,394,392 | 4,947 | |||||||||||||||
Held to maturity | 284,587 | 296,768 | — | 296,768 | — | |||||||||||||||
Other investments | 20,498 | 20,498 | — | 20,263 | 235 | |||||||||||||||
Loans held for sale | 70,514 | 70,514 | — | 70,514 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 1,024,065 | 1,009,802 | — | 1,008,769 | 1,033 | |||||||||||||||
Commercial real estate | 1,690,899 | 1,699,722 | — | 1,687,138 | 12,584 | |||||||||||||||
Agricultural and agricultural real estate | 420,623 | 423,968 | — | 423,416 | 552 | |||||||||||||||
Residential real estate | 377,094 | 370,178 | — | 367,005 | 3,173 | |||||||||||||||
Consumer | 323,873 | 330,211 | — | 328,208 | 2,003 | |||||||||||||||
Total Loans, net | 3,836,554 | 3,833,881 | — | 3,814,536 | 19,345 | |||||||||||||||
Derivative financial instruments | — | — | — | — | — | |||||||||||||||
Interest rate lock commitments | 2,496 | 2,496 | — | — | 2,496 | |||||||||||||||
Forward commitments | 275 | 275 | — | 275 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,295,193 | 1,295,193 | — | 1,295,193 | — | |||||||||||||||
Savings deposits | 2,687,493 | 2,687,493 | — | 2,687,493 | — | |||||||||||||||
Time deposits | 785,336 | 785,336 | — | 785,336 | — | |||||||||||||||
Short term borrowings | 330,264 | 330,264 | — | 330,264 | — | |||||||||||||||
Other borrowings | 396,255 | 401,978 | — | 401,978 | — | |||||||||||||||
Derivative financial instruments | 3,646 | 3,646 | — | 3,646 | — | |||||||||||||||
Forward commitments | 1,619 | 1,619 | — | 1,619 | — | |||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
31-Dec-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 | $ | 125,270 | $ | 125,270 | $ | 125,270 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | — | — | — | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | 1,801 | 1,801 | 1,801 | — | — | |||||||||||||||
Available for sale | 1,633,902 | 1,633,902 | 4,084 | 1,626,520 | 3,298 | |||||||||||||||
Held to maturity | 237,498 | 237,437 | — | 237,437 | — | |||||||||||||||
Other investments | 21,843 | 21,843 | — | 21,608 | 235 | |||||||||||||||
Loans held for sale | 46,665 | 46,665 | — | 46,665 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 936,305 | 930,501 | — | 923,272 | 7,229 | |||||||||||||||
Commercial real estate | 1,516,352 | 1,512,773 | — | 1,505,024 | 7,749 | |||||||||||||||
Agricultural and agricultural real estate | 374,203 | 378,086 | — | 365,024 | 13,062 | |||||||||||||||
Residential real estate | 347,266 | 335,362 | — | 331,966 | 3,396 | |||||||||||||||
Consumer | 286,890 | 273,139 | — | 271,376 | 1,763 | |||||||||||||||
Total Loans, net | 3,461,016 | 3,429,861 | — | 3,396,662 | 33,199 | |||||||||||||||
Derivative financial instruments | — | — | — | — | — | |||||||||||||||
Interest rate lock commitments | 1,809 | 1,809 | — | — | 1,809 | |||||||||||||||
Forward commitments | 1,206 | 1,206 | — | 1,206 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,238,581 | 1,238,581 | — | 1,238,581 | — | |||||||||||||||
Savings deposits | 2,535,242 | 2,535,242 | — | 2,535,242 | — | |||||||||||||||
Time deposits | 892,676 | 892,676 | — | 892,676 | — | |||||||||||||||
Short term borrowings | 408,756 | 408,756 | — | 408,756 | — | |||||||||||||||
Other borrowings | 350,109 | 355,923 | — | 355,923 | — | |||||||||||||||
Derivative financial instruments | 3,697 | 3,697 | — | 3,697 | — | |||||||||||||||
Forward commitments | 133 | 133 | — | 133 | — | |||||||||||||||
Cash and Cash Equivalents — 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. | ||||||||||||||||||||
Other Investments — Fair value measurement of other investments, which consists primarily of FHLB stock, are based on their redeemable value, which is at cost. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. | ||||||||||||||||||||
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 fair value of the underlying collateral. The fair value of loans held for sale is estimated using quoted market prices. | ||||||||||||||||||||
Interest Rate Lock Commitments — The fair value of interest rate lock commitments is estimated using an internal valuation model, which includes grouping the interest rate lock commitments by interest rate and terms, applying an estimated closing ratio based on historical experience, and then multiplying by quoted investor prices determined to be reasonably applicable to the loan commitment groups based on interest rate, terms, and rate lock expiration dates of the loan commitment group. | ||||||||||||||||||||
Forward Commitments — The fair value of these instruments is estimated using an internal valuation model, which includes current trade pricing for similar financial instruments. | ||||||||||||||||||||
Derivative Financial Instruments — 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 | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | SEGMENT REPORTING | |||||||||||
Reportable segments include community banking and retail mortgage banking services. These segments were determined based on the products and services provided or the type of customers served and is consistent with the information that is used by Heartland's key decision makers to make operating decisions and to assess Heartland's performance. Community banking involves making loans to and generating deposits from individuals and businesses in the markets where Heartland has banks. Retail mortgage banking involves the origination of residential loans and subsequent sale of those loans to investors. The mortgage banking segment is a strategic business unit that offers different products and services. It is managed separately because the segment appeals to different markets and, accordingly, requires different technology and marketing strategies. The segment's most significant revenue and expense is non-interest income and non-interest expense, respectively. Heartland does not have other reportable operating segments. The accounting policies of the mortgage banking segment are the same as those described in the summary of significant accounting policies. All intersegment sales prices are market based. All of Heartland's goodwill is associated with the community banking segment. | ||||||||||||
The following table presents the financial information from Heartland's operating segments for the years ending December 31, 2014, December 31, 2013, and December 31, 2012, in thousands. | ||||||||||||
Community and Other Banking | Mortgage Banking | Total | ||||||||||
31-Dec-14 | ||||||||||||
Net Interest Income | $ | 200,394 | $ | 2,679 | $ | 203,073 | ||||||
Provision for loan losses | 14,501 | — | 14,501 | |||||||||
Total noninterest income | 48,330 | 33,894 | 82,224 | |||||||||
Total noninterest expense | 172,392 | 43,408 | 215,800 | |||||||||
Income (loss) before income taxes | $ | 61,831 | $ | (6,835 | ) | $ | 54,996 | |||||
December 31, 2013 | ||||||||||||
Net Interest Income | $ | 161,452 | $ | 2,376 | $ | 163,828 | ||||||
Provision for loan losses | 9,697 | — | 9,697 | |||||||||
Total noninterest income | 49,810 | 39,808 | 89,618 | |||||||||
Total noninterest expense | 150,767 | 45,794 | 196,561 | |||||||||
Income (loss) before income taxes | $ | 50,798 | $ | (3,610 | ) | $ | 47,188 | |||||
December 31, 2012 | ||||||||||||
Net Interest Income | $ | 147,903 | $ | 2,253 | $ | 150,156 | ||||||
Provision for loan losses | 8,202 | — | 8,202 | |||||||||
Total noninterest income | 50,947 | 57,715 | 108,662 | |||||||||
Total noninterest expense | 142,646 | 40,735 | 183,381 | |||||||||
Income before income taxes | $ | 48,002 | $ | 19,233 | $ | 67,235 | ||||||
Segment Assets | ||||||||||||
31-Dec-14 | $ | 5,951,875 | $ | 100,487 | $ | 6,052,362 | ||||||
31-Dec-13 | 5,850,976 | 72,740 | 5,923,716 | |||||||||
December 31, 2012 | 4,868,618 | 121,935 | 4,990,553 | |||||||||
Average Loans | ||||||||||||
31-Dec-14 | $ | 3,679,908 | $ | 64,922 | $ | 3,744,830 | ||||||
31-Dec-13 | 2,939,856 | 76,577 | 3,016,433 | |||||||||
31-Dec-12 | 2,605,151 | 91,301 | 2,696,452 | |||||||||
Parent_Company_Only_Financial_
Parent Company Only Financial Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Parent Company Only Financial Information | PARENT COMPANY ONLY FINANCIAL INFORMATION | |||||||||||
Condensed financial information for Heartland Financial USA, Inc. is as follows: | ||||||||||||
BALANCE SHEETS | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash and interest bearing deposits | $ | 124,387 | $ | 17,912 | ||||||||
Trading securities | — | 1,801 | ||||||||||
Securities available for sale | 5,684 | 3,952 | ||||||||||
Other investments, at cost | 235 | 235 | ||||||||||
Investment in subsidiaries | 592,324 | 561,272 | ||||||||||
Other assets | 19,272 | 33,407 | ||||||||||
Due from subsidiaries | 6,000 | 6,000 | ||||||||||
Total assets | $ | 747,902 | $ | 624,579 | ||||||||
Liabilities and stockholders’ equity: | ||||||||||||
Other borrowings | $ | 238,941 | $ | 174,153 | ||||||||
Accrued expenses and other liabilities | 12,644 | 10,966 | ||||||||||
Total liabilities | 251,585 | 185,119 | ||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock | 81,698 | 81,698 | ||||||||||
Common stock | 18,511 | 18,399 | ||||||||||
Capital surplus | 95,816 | 91,632 | ||||||||||
Retained earnings | 298,764 | 265,067 | ||||||||||
Accumulated other comprehensive income (loss) | 1,528 | (17,336 | ) | |||||||||
Treasury stock | — | — | ||||||||||
Total stockholders’ equity | 496,317 | 439,460 | ||||||||||
Total liabilities and stockholders’ equity | $ | 747,902 | $ | 624,579 | ||||||||
INCOME STATEMENTS | ||||||||||||
(Dollars in thousands) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating revenues: | ||||||||||||
Dividends from subsidiaries | $ | 47,485 | $ | 47,750 | $ | 42,800 | ||||||
Securities gains, net | — | 2,316 | — | |||||||||
Gain on trading account securities | (38 | ) | 1,421 | 47 | ||||||||
Other | 640 | 726 | 664 | |||||||||
Total operating revenues | 48,087 | 52,213 | 43,511 | |||||||||
Operating expenses: | ||||||||||||
Interest | 10,052 | 9,206 | 9,133 | |||||||||
Salaries and benefits | 5,584 | 5,104 | 6,191 | |||||||||
Professional fees | 3,406 | 3,671 | 3,100 | |||||||||
Other operating expenses | 2,173 | 1,577 | 2,417 | |||||||||
Total operating expenses | 21,215 | 19,558 | 20,841 | |||||||||
Equity in undistributed earnings (losses) | 6,749 | (1,275 | ) | 19,739 | ||||||||
Income before income tax benefit | 33,621 | 31,380 | 42,409 | |||||||||
Income tax benefit | 8,279 | 5,409 | 7,383 | |||||||||
Net income | 41,900 | 36,789 | 49,792 | |||||||||
Preferred dividends and discount | (817 | ) | (1,093 | ) | (3,400 | ) | ||||||
Net income available to common stockholders | $ | 41,083 | $ | 35,696 | $ | 46,392 | ||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
(Dollars in thousands) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 41,900 | $ | 36,789 | $ | 49,792 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Undistributed (earnings) losses of subsidiaries | (6,749 | ) | 1,275 | (19,739 | ) | |||||||
Security gains, net | — | (2,316 | ) | — | ||||||||
(Increase) decrease in due from subsidiaries | — | 1,000 | (4,250 | ) | ||||||||
Increase (decrease) in accrued expenses and other liabilities | 1,678 | (6,125 | ) | 4,448 | ||||||||
(Increase) decrease in other assets | 14,135 | (4,104 | ) | (7,163 | ) | |||||||
(Increase) decrease in trading account securities | 1,801 | (1,421 | ) | (47 | ) | |||||||
Other, net | 3,086 | 4,089 | 1,776 | |||||||||
Net cash provided by operating activities | 55,851 | 29,187 | 24,817 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital contributions to subsidiaries | (6,735 | ) | (69,429 | ) | (32,841 | ) | ||||||
Purchases of other securities | — | — | (195 | ) | ||||||||
Proceeds from sales of available for sale securities | — | 2,925 | — | |||||||||
Proceeds from sale of other investments | — | — | 155 | |||||||||
Net assets acquired | — | 44,697 | — | |||||||||
Net cash used by investing activities | (6,735 | ) | (21,807 | ) | (32,881 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from other borrowings | 73,950 | 80 | 10,000 | |||||||||
Repayments of other borrowings | (9,162 | ) | (1,255 | ) | (6,374 | ) | ||||||
Cash dividends paid | (8,203 | ) | (8,001 | ) | (11,695 | ) | ||||||
Purchase of treasury stock | (899 | ) | (2,004 | ) | (2,937 | ) | ||||||
Proceeds from issuance of common stock | 1,673 | 4,265 | 9,557 | |||||||||
Net cash provided (used) by financing activities | 57,359 | (6,915 | ) | (1,449 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 106,475 | 465 | (9,513 | ) | ||||||||
Cash and cash equivalents at beginning of year | 17,912 | 17,447 | 26,960 | |||||||||
Cash and cash equivalents at end of year | $ | 124,387 | $ | 17,912 | $ | 17,447 | ||||||
Supplemental disclosure: | ||||||||||||
Stock consideration granted for acquisition | $ | — | $ | 38,755 | $ | — | ||||||
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of Quarterly Financial Information (Unaudited) | SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
2014 | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||
Net interest income | $ | 52,171 | $ | 51,491 | $ | 50,799 | $ | 48,612 | ||||||||
Provision for loan and lease losses | 2,866 | 2,553 | 2,751 | 6,331 | ||||||||||||
Net interest income after provision for loan and lease losses | 49,305 | 48,938 | 48,048 | 42,281 | ||||||||||||
Noninterest income | 21,233 | 20,606 | 21,535 | 18,850 | ||||||||||||
Noninterest expense | 53,948 | 54,655 | 54,659 | 52,538 | ||||||||||||
Income taxes | 4,327 | 2,916 | 4,150 | 1,703 | ||||||||||||
Net income | 12,263 | 11,973 | 10,774 | 6,890 | ||||||||||||
Net income available to noncontrolling interest, net of tax | — | — | — | — | ||||||||||||
Net income attributable to Heartland | 12,263 | 11,973 | 10,774 | 6,890 | ||||||||||||
Preferred stock dividends and discount | (204 | ) | (205 | ) | (204 | ) | (204 | ) | ||||||||
Net income available to common stockholders | 12,059 | 11,768 | 10,570 | 6,686 | ||||||||||||
Per share: | ||||||||||||||||
Earnings per share-basic | $ | 0.65 | $ | 0.64 | $ | 0.57 | $ | 0.36 | ||||||||
Earnings per share-diluted | 0.64 | 0.63 | 0.56 | 0.36 | ||||||||||||
Cash dividends declared on common stock | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Book value per common share | 22.4 | 21.74 | 21.16 | 20.36 | ||||||||||||
Weighted average common shares outstanding | 18,482,059 | 18,468,762 | 18,458,113 | 18,437,253 | ||||||||||||
Weighted average diluted common shares outstanding | 18,762,272 | 18,752,748 | 18,746,735 | 18,724,936 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
2013 | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||
Net interest income | $ | 46,357 | $ | 39,880 | $ | 38,924 | $ | 38,667 | ||||||||
Provision for loan and lease losses | 2,049 | 5,149 | 1,862 | 637 | ||||||||||||
Net interest income after provision for loan and lease losses | 44,308 | 34,731 | 37,062 | 38,030 | ||||||||||||
Noninterest income | 17,574 | 20,718 | 24,858 | 26,468 | ||||||||||||
Noninterest expense | 53,901 | 47,147 | 48,766 | 46,747 | ||||||||||||
Income taxes | 46 | 1,492 | 3,598 | 5,199 | ||||||||||||
Net income | 7,935 | 6,810 | 9,556 | 12,552 | ||||||||||||
Net income available to noncontrolling interest, net of tax | — | — | — | (64 | ) | |||||||||||
Net income attributable to Heartland | 7,935 | 6,810 | 9,556 | 12,488 | ||||||||||||
Preferred stock dividends and discount | (204 | ) | (276 | ) | (205 | ) | (408 | ) | ||||||||
Net income available to common stockholders | 7,731 | 6,534 | 9,351 | 12,080 | ||||||||||||
Per share: | ||||||||||||||||
Earnings per share-basic | $ | 0.43 | $ | 0.39 | $ | 0.55 | $ | 0.72 | ||||||||
Earnings per share-diluted | 0.42 | 0.38 | 0.54 | 0.7 | ||||||||||||
Cash dividends declared on common stock | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Book value per common share | 19.44 | 18.58 | 18.51 | 19.54 | ||||||||||||
Weighted average common shares outstanding | 18,096,345 | 16,935,581 | 16,907,405 | 16,851,672 | ||||||||||||
Weighted average diluted common shares outstanding | 18,360,470 | 17,221,154 | 17,203,924 | 17,187,180 | ||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Presentation | The consolidated financial statements include the accounts of Heartland and its subsidiaries: Dubuque Bank and Trust Company; Galena State Bank & Trust Co.; Illinois Bank & Trust; Wisconsin Bank & Trust; New Mexico Bank & Trust; Arizona Bank & Trust; Rocky Mountain Bank; Summit Bank & Trust; Minnesota Bank & Trust; Morrill & Janes Bank and Trust Company; Citizens Finance Parent Co.; DB&T Insurance, Inc.; DB&T Community Development Corp.; Heartland Community Development, Inc.; Citizens Finance Co.; Citizens Finance of Illinois Co.; Heartland Financial Statutory Trust III; Heartland Financial Statutory Trust IV; Heartland Financial Statutory Trust V; Heartland Financial Statutory Trust VI; Heartland Financial Statutory Trust VII; Morrill Statutory Trust I; and Morrill Statutory Trust II. All of Heartland’s subsidiaries are wholly-owned as of December 31, 2014. Prior to April 2013, Heartland had been an 80% owner of Minnesota Bank & Trust. The noncontrolling interest in the majority-owned subsidiaries is noted on the consolidated balance sheets and on the consolidated statements of income. All significant intercompany balances and transactions have been eliminated in consolidation. |
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and prevailing practices within the banking industry. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan and lease losses. | |
Cash and Cash Equivalents | For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and other short-term investments. Generally, federal funds are purchased and sold for one-day periods. |
Trading Securities | Trading securities represent those securities Heartland intends to actively trade and are stated at fair value with changes in fair value reflected in noninterest income. |
Securities Available for Sale | Available for sale securities consist of those securities not classified as held to maturity or trading, which management intends to hold for indefinite periods of time or that may be sold in response to changes in interest rates, prepayments or other similar factors. Available for sale securities are stated at fair value with any unrealized gain or loss, net of applicable income tax, reported as a separate component of stockholders’ equity. Security premiums and discounts are amortized/accreted using the interest method over the period from the purchase date to the expected maturity or call date of the related security. Declines in the fair value of investment securities available for sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating whether impairment is other-than-temporary, Heartland considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of Heartland to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) Heartland has the intent to sell a security; (2) it is more likely than not that Heartland will be required to sell the security before recovery of its amortized cost basis; or (3) Heartland does not expect to recover the entire amortized cost basis of the security. If Heartland intends to sell a security or if it is more likely than not that Heartland will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If Heartland does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in noninterest income, and an amount related to all other factors, which is recognized in other comprehensive income. Realized securities gains or losses on securities sales (using specific identification method) and declines in value judged to be other-than-temporary are included in impairment loss on securities in the consolidated statements of income. |
Securities Held to Maturity | Securities which Heartland has the ability and positive intent to hold to maturity are classified as held to maturity. Such securities are stated at amortized cost, adjusted for premiums and discounts that are amortized/accreted using the interest method over the period from the purchase date to the expected maturity or call date of the related security. Unrealized losses determined to be other-than-temporary are charged to noninterest income. |
Loans and Leases, Loans Held for Sale and Allowance for Loan and Lease Losses | The allowance for loan and lease losses is maintained at a level estimated by management to provide for known and inherent risks in the loan and lease portfolios. The allowance is based upon a continuing review of past loan and lease loss experience, current economic conditions, volume growth, the underlying collateral value of the loans and leases and other relevant factors. Loans and leases which are deemed uncollectible are charged off and deducted from the allowance. Provisions for loan and lease losses and recoveries on previously charged-off loans and leases are added to the allowance. |
Loans held for sale are stated at the lower of cost or fair value on an aggregate basis. Gains or losses on sales are recorded in noninterest income. Direct loan origination costs and fees are deferred at origination of the loan. These deferred costs and fees are recognized in noninterest income as part of the gain or loss on sales of loans upon sale of the loan. | |
Other real estate represents property acquired through foreclosures and settlements of loans. Property acquired is recorded at the estimated fair value of the property less disposal costs. The excess of carrying value over fair value less disposal costs is charged against the allowance for loan and lease losses. Subsequent write downs estimated on the basis of later valuations and gains or losses on sales are charged to loss on sales/valuation of assets, net. Expenses incurred in maintaining such properties are charged to other real estate and loan collection expenses. | |
Interest on loans is accrued and credited to income based primarily on the principal balance outstanding. Income from leases is recorded in decreasing amounts over the term of the contract resulting in a level rate of return on the lease investment. 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 policies, 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 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. | |
Net nonrefundable loan and lease origination fees and certain direct costs associated with the lending process are deferred and recognized as a yield adjustment over the life of the related loan or lease. | |
Troubled Debt Restructured Loans | Loans are considered troubled debt restructured loans ("TDR") if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual TDRs are included and treated consistently with all other nonaccrual loans. In addition, all accruing TDRs are reported and accounted for as impaired loans. Generally, TDRs remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. |
A loan that is a TDR that has an interest rate consistent with market rates at the time of restructuring and is in compliance with its modified terms in the calendar year after the year in which the restructuring took place is no longer considered a TDR but remains an impaired loan. To be considered in compliance with its modified terms, a loan that is a TDR must be in accrual status and must be current or less than 30 days past due under the modified repayment terms; however, the loan will continue to be considered impaired. A loan that has been modified at a below market rate will remain classified as a TDR and an impaired loan. If the borrower’s financial conditions improve to the extent that the borrower qualifies for a new loan with market terms, the new loan will not be considered a TDR or impaired if Heartland's credit analysis shows the borrower's ability to perform under the new market terms. | |
Morgage Servicing and Transfers of Financial Assets | Heartland regularly sells residential mortgage loans to others, primarily GSEs, on a non-recourse basis. Sold loans are not included in the accompanying consolidated balance sheets. Heartland generally retains the right to service the sold loans for a fee. |
Reserve for Unfunded Commitments | This reserve is maintained at a level that, in the opinion of management, is appropriate to absorb probable losses associated with Heartland’s commitment to lend funds under existing agreements such as letters or lines of credit. Management determines the appropriateness of the reserve for unfunded commitments based upon reviews of delinquencies, current economic conditions, the risk characteristics of the various categories of commitments and other relevant factors. The reserve is based on estimates, and ultimate losses may vary from the current estimates. These estimates are evaluated on a regular basis and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Draws on unfunded commitments that are considered uncollectible at the time funds are advanced are charged to the allowance. Provisions for unfunded commitment losses are added to the reserve for unfunded commitments, which is included in the Accrued Expenses and Other Liabilities section of the consolidated balance sheets. |
Premises, Furniture and Equipment | Premises, furniture and equipment are stated at cost less accumulated depreciation. The provision for depreciation of premises, furniture and equipment is determined by straight-line and accelerated methods over the estimated useful lives of 18 to 39 years for buildings, 15 years for land improvements and 3 to 7 years for furniture and equipment. |
Goodwill and Intangible Assets | Intangible assets consist of goodwill, core deposit intangibles, customer relationship intangibles and mortgage servicing rights. Goodwill represents the excess of the purchase price of acquired subsidiaries’ net assets over their fair value at the purchase date. Heartland assesses goodwill for impairment annually, and more frequently if events occur which may indicate possible impairment, and assesses goodwill at the reporting unit level, also giving consideration to overall enterprise value as part of that assessment. In evaluating goodwill for impairment, Heartland first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If Heartland concludes that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then no further testing of goodwill assigned to the reporting unit is required. However, if Heartland concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then Heartland performs a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment to recognize, if any. In the first step, the fair value of a reporting unit is compared to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired and it is not necessary to continue to step two of the impairment process. If the fair value of the reporting unit is less than the carrying amount, step two is performed. In step two, the implied fair value of goodwill is compared to the carrying value of the reporting unit's goodwill. The implied fair value of goodwill is computed as a residual value after allocating the fair value of the reporting unit to its assets and liabilities. Heartland estimates the fair value of its reporting units using market multiples of comparable entities, including recent transactions, or a combination of market multiples and discounted cash flow methodology. These methods incorporate assumptions specific to the entity, such as the use of financial forecasts. |
Core deposit intangibles are amortized over 8 to 18 years on an accelerated basis. Customer relationship intangibles are amortized over 22 years on an accelerated basis. Periodically, Heartland reviews the intangible assets for events or circumstances that may indicate a change in the recoverability of the underlying basis, except mortgage servicing rights which are reviewed quarterly. | |
Mortgage servicing rights associated with loans originated and sold, where servicing is retained, are initially capitalized at fair value and recorded on the consolidated statements of income as a component of gains on sale of loans held for sale. The values of these capitalized servicing rights are amortized as an offset to the servicing revenue earned in relation to the servicing revenue expected to be earned. The carrying values of these rights are reviewed quarterly for impairment based on the calculation of their fair value as performed by an outside third party. For purposes of measuring impairment, the rights are stratified into certain risk characteristics including loan type and loan term. | |
Bank-Owned Life Insurance | Heartland and its subsidiaries have purchased life insurance policies on the lives of certain officers. The one-time premiums paid for the policies, which coincide with the initial cash surrender value, are recorded as an asset. Increases or decreases in the cash surrender value, other than proceeds from death benefits, are recorded as noninterest income (loss). Proceeds from death benefits first reduce the cash surrender value attributable to the individual policy and then any additional proceeds are recorded as noninterest income. |
Income Taxes | Heartland and its subsidiaries file a consolidated federal income tax return and separate or combined income or franchise tax returns as required by the various states. Heartland recognizes certain income and expenses in different time periods for financial reporting and income tax purposes. The provision for deferred income taxes is based on an asset and liability approach and represents the change in deferred income tax accounts during the year, including the effect of enacted tax rate changes. A valuation allowance is provided to reduce deferred tax assets if their expected realization is deemed not to be more likely than not. |
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Heartland recognizes interest and penalties related to income tax matters in income tax expense. | |
Derivative Financial Instruments and Mortgage Derivatives | Heartland uses interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans and mortgage backed securities. These commitments 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. |
Heartland uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps and certain interest rate lock commitments and forward sales of securities related to mortgage banking activities. FASB Accounting Standards Codification ("ASC") Topic 815 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by ASC 815, Heartland records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. To qualify for hedge accounting, Heartland must comply with the detailed rules and documentation requirements at the inception of the hedge, and hedge effectiveness is assessed at inception and periodically throughout the life of each hedging relationship. Hedge ineffectiveness, if any, is measured periodically throughout the life of the hedging relationship. | |
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income and subsequently reclassified to interest income or expense when the hedged transaction affects earnings, while the ineffective portion of changes in the fair value of the derivative, if any, is recognized immediately in other noninterest income. Heartland assesses the effectiveness of each hedging relationship by comparing the cumulative changes in cash flows of the derivative hedging instrument with the cumulative changes in cash flows of the designated hedged item or transaction. No component of the change in the fair value of the hedging instrument is excluded from the assessment of hedge effectiveness. | |
Heartland had no fair value hedging relationships at December 31, 2014 or 2013. Derivatives not qualifying for hedge accounting, classified as free-standing derivatives, have all changes in the fair value recorded on the consolidated statements of income through noninterest income. | |
Heartland does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and are used to manage Heartland’s exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements of ASC 815. | |
Segment Reporting | Public business enterprises are required to report information about operating segments in financial statements and selected information about operating segments in financial reports issued to shareholders. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in determining how to allocate resources and to assess effectiveness of the segments' performance. Generally, financial information is required to be reported on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to segments. Heartland has two reporting segments, one for community banking and one for mortgage banking operations. |
Fair Value Measurements | Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price concept). Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using discounted cash flow or other valuation techniques. Inputs into the valuation methods are subjective in nature, involve uncertainties, and require significant judgment and therefore cannot be determined with precision. Accordingly, the derived fair value estimates presented herein are not necessarily indicative of the amounts Heartland could realize in a current market exchange. Assets and liabilities are categorized into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Heartland's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Below is a brief description of each fair value level: |
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 which 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. | |
Treasury Stock | Treasury stock is accounted for by the cost method, whereby shares of common stock reacquired are recorded at their purchase price. When treasury stock is reissued, any difference between the sales proceeds, or fair value when issued for business combinations, and the cost is recognized as a charge or credit to capital surplus. |
Trust Department Assets | Property held for customers in fiduciary or agency capacities is not included in the accompanying consolidated balance sheets, as such items are not assets of the Heartland banks. |
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. |
Subsequent Events | Heartland has evaluated subsequent events that may require recognition or disclosure through the filing date of this annual report on Form 10-K with the SEC. On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin. |
Effect of New Financial Accounting Standards | 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. Heartland adopted this standard on January 1, 2014, and the adoption did not have a material impact on the results of operations, financial position, and liquidity. |
In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects." The amendments in ASU 2014-01 to Topic 323, "Equity Investments and Joint Ventures," provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. The amendments permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied retrospectively to all periods presented. Early adoption is permitted. Heartland is in the process of evaluating the impact that adoption of this guidance will have on the results of operations, financial position, and liquidity. | |
In January 2014, the FASB issued ASU 2014-04, "Receivables-Troubled Debt Restructurings by Creditors: Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure." The amendments in ASU 2014-04 clarify that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." The amendment clarifies the principles for recognizing revenue and develops a common revenue standard. The amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The amendment applies to all contracts with customers except those that are within the scope of other topics in the FASB Codification. The standard also requires significantly expanded disclosures about revenue recognition. The amendment is effective for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Early application is not permitted. Heartland intends to adopt the accounting standard during the first quarter of 2017, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. | |
In August 2014, the FASB issued ASU 2014-14, "Receivables-Troubled Debt Restructurings by Creditors: Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure." The amendment clarifies how creditors are to classify certain government-guaranteed mortgage loans upon foreclosure. The amendment requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: (i) the loan has a government guarantee that is not separate from the loan before foreclosure, and (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim, and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured on the amount of the loan balance (principal and interest) expected to be recovered for the guarantor. This amendment is effective for annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2014, with early adoption permitted. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. | |
In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items." The amendment eliminates from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Heartland does not expect the adoption of this standard to have a material impact on the results of operations, financial position, and liquidity. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 years ended December 31, 2014, 2013 and 2012, are shown in the table below: | |||||||||||
(Dollars and number of shares in thousands, except per share data) | 2014 | 2013 | 2012 | |||||||||
Net income attributable to Heartland | $ | 41,900 | $ | 36,789 | $ | 49,792 | ||||||
Preferred dividends and discount | (817 | ) | (1,093 | ) | (3,400 | ) | ||||||
Net income available to common stockholders | $ | 41,083 | $ | 35,696 | $ | 46,392 | ||||||
Weighted average common shares outstanding for basic earnings per share | 18,462 | 17,199 | 16,518 | |||||||||
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 280 | 261 | 251 | |||||||||
Weighted average common shares for diluted earnings per share | 18,742 | 17,460 | 16,769 | |||||||||
Earnings per common share — basic | $ | 2.23 | $ | 2.08 | $ | 2.81 | ||||||
Earnings per common share — diluted | $ | 2.19 | $ | 2.04 | $ | 2.77 | ||||||
Number of antidilutive stock options excluded from diluted earnings per share computation | 88 | 99 | 106 | |||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The assets and liabilities of Morrill Bancshares, Inc. were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The following table represents, in thousands, the amounts recorded on the consolidated balance sheet as of October 18, 2013: | |||||||
As of October 18, 2013 | ||||||||
Fair value of consideration paid | ||||||||
Common Stock (1,402,431 shares) | $ | 38,755 | ||||||
Cash | 16,619 | |||||||
Total consideration paid | 55,374 | |||||||
Fair value of assets acquired | ||||||||
Cash and due from banks | 61,316 | |||||||
Securities: | ||||||||
Securities available for sale | 339,362 | |||||||
Securities held to maturity | 3,086 | |||||||
Other securities | 4,139 | |||||||
Loans held for sale | 97 | |||||||
Loans held to maturity | 377,565 | |||||||
Premises, furniture and equipment, net | 4,867 | |||||||
Other real estate, net | 1,296 | |||||||
Other intangible assets, net | 8,694 | |||||||
Other assets | 5,389 | |||||||
Total assets | 805,811 | |||||||
Fair value of liabilities assumed | ||||||||
Deposits | 665,297 | |||||||
Short term borrowings | 62,450 | |||||||
Other borrowings | 22,809 | |||||||
Other liabilities | 4,837 | |||||||
Total liabilities assumed | 755,393 | |||||||
Fair value of net assets acquired | 50,418 | |||||||
Goodwill resulting from acquisition | $ | 4,956 | ||||||
Business Acquisition, Pro Forma Information | The following pro forma information presents the results of operations for the years ended December 31, 2013 and December 31, 2012, as if the Morrill Bancshares, Inc. acquisition occurred on January 1, 2012. | |||||||
(Dollars in thousands, except per share data) | For the Years Ended | |||||||
31-Dec-13 | 31-Dec-12 | |||||||
Net interest income | $ | 181,310 | $ | 168,475 | ||||
Net income | $ | 39,043 | $ | 52,052 | ||||
Basic earnings per share | $ | 2.27 | $ | 3.15 | ||||
Diluted earnings per share | $ | 2.24 | $ | 3.1 | ||||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Available-for-sale Securities | The amortized cost and estimated fair value of securities available for sale at December 31, 2014 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. | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 7,335 | $ | 7,403 | ||||||||||||||||||||
Due in 1 to 5 years | 28,470 | 28,570 | ||||||||||||||||||||||
Due in 5 to 10 years | 12,664 | 12,959 | ||||||||||||||||||||||
Due after 10 years | 123,991 | 128,587 | ||||||||||||||||||||||
Total debt securities | 172,460 | 177,519 | ||||||||||||||||||||||
Mortgage-backed securities | 1,219,305 | 1,219,266 | ||||||||||||||||||||||
Equity securities | 5,029 | 5,083 | ||||||||||||||||||||||
Total investment securities | $ | 1,396,794 | $ | 1,401,868 | ||||||||||||||||||||
The amortized cost, gross unrealized gains and losses and estimated fair values of securities available for sale as of December 31, 2014, and December 31, 2013, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 24,010 | $ | 98 | $ | (15 | ) | $ | 24,093 | |||||||||||||||
Mortgage-backed securities | 1,219,305 | 11,929 | (11,968 | ) | 1,219,266 | |||||||||||||||||||
Obligations of states and political subdivisions | 148,450 | 5,304 | (328 | ) | 153,426 | |||||||||||||||||||
Total debt securities | 1,391,765 | 17,331 | (12,311 | ) | 1,396,785 | |||||||||||||||||||
Equity securities | 5,029 | 54 | — | 5,083 | ||||||||||||||||||||
Total | $ | 1,396,794 | $ | 17,385 | $ | (12,311 | ) | $ | 1,401,868 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 220,157 | $ | 147 | $ | (2,001 | ) | $ | 218,303 | |||||||||||||||
Mortgage-backed securities | 1,156,983 | 9,538 | (22,574 | ) | 1,143,947 | |||||||||||||||||||
Obligations of states and political subdivisions | 277,320 | 1,706 | (12,402 | ) | 266,624 | |||||||||||||||||||
Total debt securities | 1,654,460 | 11,391 | (36,977 | ) | 1,628,874 | |||||||||||||||||||
Equity securities | 4,996 | 32 | — | 5,028 | ||||||||||||||||||||
Total | $ | 1,659,456 | $ | 11,423 | $ | (36,977 | ) | $ | 1,633,902 | |||||||||||||||
Held-to-maturity Securities | The amortized cost and estimated fair value of debt securities held to maturity at December 31, 2014 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. | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 1,049 | $ | 1,098 | ||||||||||||||||||||
Due in 1 to 5 years | 13,388 | 14,038 | ||||||||||||||||||||||
Due in 5 to 10 years | 57,242 | 59,904 | ||||||||||||||||||||||
Due after 10 years | 207,174 | 216,444 | ||||||||||||||||||||||
Total debt securities | 278,853 | 291,484 | ||||||||||||||||||||||
Mortgage-backed securities | 5,734 | 5,284 | ||||||||||||||||||||||
Total investment securities | $ | 284,587 | $ | 296,768 | ||||||||||||||||||||
The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of December 31, 2014, and December 31, 2013, are summarized in the table below, in thousands: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 5,734 | $ | 217 | $ | (667 | ) | $ | 5,284 | |||||||||||||||
Obligations of states and political subdivisions | 278,853 | 13,576 | (945 | ) | 291,484 | |||||||||||||||||||
Total | $ | 284,587 | $ | 13,793 | $ | (1,612 | ) | $ | 296,768 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 5,973 | $ | 199 | $ | (321 | ) | $ | 5,851 | |||||||||||||||
Obligations of states and political subdivisions | 231,525 | 5,801 | (5,740 | ) | 231,586 | |||||||||||||||||||
Total | $ | 237,498 | $ | 6,000 | $ | (6,061 | ) | $ | 237,437 | |||||||||||||||
Schedule of Realized Gain (Loss) | Gross gains and losses realized related to sales of securities available for sale for the years ended December 31, 2014, 2013, and 2012 are summarized as follows, in thousands: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Available for Sale Securities sold: | ||||||||||||||||||||||||
Proceeds from sales | $ | 791,767 | $ | 546,532 | $ | 576,083 | ||||||||||||||||||
Gross security gains | 5,871 | 8,895 | 15,387 | |||||||||||||||||||||
Gross security losses | 2,203 | 1,774 | 1,389 | |||||||||||||||||||||
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 December 31, 2014 and December 31, 2013. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2014, and December 31, 2013, 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 | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 6,042 | $ | (15 | ) | $ | — | $ | — | $ | 6,042 | $ | (15 | ) | ||||||||||
Mortgage-backed securities | 327,363 | (7,391 | ) | 306,078 | (4,577 | ) | 633,441 | (11,968 | ) | |||||||||||||||
Obligations of states and political subdivisions | 886 | (6 | ) | 20,507 | (322 | ) | 21,393 | (328 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 334,291 | $ | (7,412 | ) | $ | 326,585 | $ | (4,899 | ) | $ | 660,876 | $ | (12,311 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
U.S. government corporations and agencies | $ | 196,345 | $ | (2,001 | ) | $ | — | $ | — | $ | 196,345 | $ | (2,001 | ) | ||||||||||
Mortgage-backed securities | 640,684 | (17,064 | ) | 118,229 | (5,510 | ) | 758,913 | (22,574 | ) | |||||||||||||||
Obligations of states and political subdivisions | 196,987 | (11,452 | ) | 10,714 | (950 | ) | 207,701 | (12,402 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 1,034,016 | $ | (30,517 | ) | $ | 128,943 | $ | (6,460 | ) | $ | 1,162,959 | $ | (36,977 | ) | |||||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ||||||||||||||||||||||||
Securities held to maturity | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | — | $ | 2,761 | $ | (667 | ) | $ | 2,761 | $ | (667 | ) | ||||||||||
Obligations of states and political subdivisions | 3,172 | (422 | ) | 29,402 | (523 | ) | 32,574 | (945 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 3,172 | $ | (422 | ) | $ | 32,163 | $ | (1,190 | ) | $ | 35,335 | $ | (1,612 | ) | |||||||||
December 31, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 2,170 | $ | (319 | ) | $ | 834 | $ | (2 | ) | $ | 3,004 | $ | (321 | ) | |||||||||
Obligations of states and political subdivisions | 47,175 | (3,508 | ) | 21,505 | (2,232 | ) | 68,680 | (5,740 | ) | |||||||||||||||
Total temporarily impaired securities | $ | 49,345 | $ | (3,827 | ) | $ | 22,339 | $ | (2,234 | ) | $ | 71,684 | $ | (6,061 | ) | |||||||||
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: | |||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
OTTI write-downs included in earnings: | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
OTTI on debt securities | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Mortgage-backed securities | — | — | 683 | |||||||||||||||||||||
Accretion of non-credit related impairment | (95 | ) | (95 | ) | (71 | ) | ||||||||||||||||||
Total changes to AOCI for non-credit related impairment | (95 | ) | (95 | ) | 612 | |||||||||||||||||||
Total OTTI losses (accretion) recorded on debt securities | $ | (95 | ) | $ | (95 | ) | $ | 1,593 | ||||||||||||||||
Loans_and_Leases_Tables
Loans and Leases (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Loans and Leases | Loans and leases as of December 31, 2014, and December 31, 2013, were as follows, in thousands: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Loans and leases receivable held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 1,036,080 | $ | 950,197 | ||||||||||||||||||||||||
Commercial real estate | 1,707,060 | 1,529,683 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | 423,827 | 376,735 | ||||||||||||||||||||||||||
Residential real estate | 380,341 | 349,349 | ||||||||||||||||||||||||||
Consumer | 330,555 | 294,145 | ||||||||||||||||||||||||||
Gross loans and leases receivable held to maturity | 3,877,863 | 3,500,109 | ||||||||||||||||||||||||||
Unearned discount | (90 | ) | (168 | ) | ||||||||||||||||||||||||
Deferred loan fees | (1,028 | ) | (2,989 | ) | ||||||||||||||||||||||||
Total net loans and leases receivable held to maturity | 3,876,745 | 3,496,952 | ||||||||||||||||||||||||||
Loans covered under loss share agreements: | ||||||||||||||||||||||||||||
Commercial and commercial real estate | 54 | 2,314 | ||||||||||||||||||||||||||
Agricultural and agricultural real estate | — | 543 | ||||||||||||||||||||||||||
Residential real estate | 1,204 | 2,280 | ||||||||||||||||||||||||||
Consumer | — | 612 | ||||||||||||||||||||||||||
Total loans covered under loss share agreements | 1,258 | 5,749 | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (41,449 | ) | (41,685 | ) | ||||||||||||||||||||||||
Loans and leases receivable, net | $ | 3,836,554 | $ | 3,461,016 | ||||||||||||||||||||||||
Allowance for Loan and Lease Losses, Based on Impairment Methodology | The following table shows the balance in the allowance for loan and lease losses at December 31, 2014 and December 31, 2013, 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 changes to the accounting for the allowance for loan and lease losses policy during 2014 or 2013. | |||||||||||||||||||||||||||
Allowance For Loan | Gross Loans and Leases Receivable | |||||||||||||||||||||||||||
and Lease Losses | Held to Maturity | |||||||||||||||||||||||||||
Ending Balance | Ending Balance | Total | Ending Balance | Ending Balance | Total | |||||||||||||||||||||||
Under ASC | Under ASC | Evaluated for Impairment | Evaluated for Impairment | |||||||||||||||||||||||||
310-10-35 | 450-20 | Under ASC | Under ASC | |||||||||||||||||||||||||
310-10-35 | 450-20 | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Commercial | $ | 754 | $ | 11,155 | $ | 11,909 | $ | 4,526 | $ | 1,031,554 | $ | 1,036,080 | ||||||||||||||||
Commercial real estate | 636 | 15,262 | 15,898 | 35,771 | 1,671,289 | 1,707,060 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 52 | 3,243 | 3,295 | 5,049 | 418,778 | 423,827 | ||||||||||||||||||||||
Residential real estate | 442 | 3,299 | 3,741 | 10,235 | 370,106 | 380,341 | ||||||||||||||||||||||
Consumer | 813 | 5,793 | 6,606 | 6,143 | 324,412 | 330,555 | ||||||||||||||||||||||
Total | $ | 2,697 | $ | 38,752 | $ | 41,449 | $ | 61,724 | $ | 3,816,139 | $ | 3,877,863 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 2,817 | $ | 10,282 | $ | 13,099 | $ | 14,644 | $ | 935,553 | $ | 950,197 | ||||||||||||||||
Commercial real estate | 818 | 13,334 | 14,152 | 28,299 | 1,501,384 | 1,529,683 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 756 | 2,236 | 2,992 | 16,667 | 360,068 | 376,735 | ||||||||||||||||||||||
Residential real estate | 605 | 3,115 | 3,720 | 7,214 | 342,135 | 349,349 | ||||||||||||||||||||||
Consumer | 1,721 | 6,001 | 7,722 | 5,137 | 289,008 | 294,145 | ||||||||||||||||||||||
Total | $ | 6,717 | $ | 34,968 | $ | 41,685 | $ | 71,961 | $ | 3,428,148 | $ | 3,500,109 | ||||||||||||||||
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 December 31, 2014, and December 31, 2013, in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at December 31, 2014, and December 31, 2013. | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Nonaccrual loans | $ | 24,205 | $ | 29,313 | ||||||||||||||||||||||||
Nonaccrual troubled debt restructured loans | 865 | 13,081 | ||||||||||||||||||||||||||
Total nonaccrual loans | $ | 25,070 | $ | 42,394 | ||||||||||||||||||||||||
Accruing loans past due 90 days or more | — | 24 | ||||||||||||||||||||||||||
Performing troubled debt restructured loans | $ | 12,133 | $ | 19,353 | ||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | The following table provides information on troubled debt restructured loans that were modified during the years ended December 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial | — | $ | — | $ | — | 4 | $ | 17,934 | $ | 17,934 | ||||||||||||||||||
Commercial real estate | 2 | 357 | 357 | 5 | 1,797 | 1,797 | ||||||||||||||||||||||
Total commercial and commercial real estate | 2 | 357 | 357 | 9 | 19,731 | 19,731 | ||||||||||||||||||||||
Agricultural and agricultural real estate | 2 | 3,357 | 3,357 | 8 | 4,349 | 4,349 | ||||||||||||||||||||||
Residential real estate | 5 | 757 | 757 | 4 | 762 | 762 | ||||||||||||||||||||||
Consumer | — | — | — | 1 | 166 | 166 | ||||||||||||||||||||||
Total | 9 | $ | 4,471 | $ | 4,471 | 22 | $ | 25,008 | $ | 25,008 | ||||||||||||||||||
Troubled Debt Restructured Loans with Payment Default | The following table provides information on troubled debt restructured loans for which there was a payment default during the years ended December 31, 2014 and December 31, 2013, in thousands, that had been modified during the 12-month period prior to the default: | |||||||||||||||||||||||||||
With Payment Defaults During the Following Periods | ||||||||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||||||||
Commercial | — | $ | — | 3 | $ | 11,598 | ||||||||||||||||||||||
Commercial real estate | 1 | 55 | 1 | 480 | ||||||||||||||||||||||||
Total commercial and commercial real estate | 1 | 55 | 4 | 12,078 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | — | — | 2 | 165 | ||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 55 | 6 | $ | 12,243 | ||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following table presents loans and leases not covered by loss share agreements by credit quality indicator at December 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||||||||||||
Pass | Nonpass | Total | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Commercial | $ | 939,717 | $ | 96,363 | $ | 1,036,080 | ||||||||||||||||||||||
Commercial real estate | 1,567,711 | 139,349 | 1,707,060 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 2,507,428 | 235,712 | 2,743,140 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 402,883 | 20,944 | 423,827 | |||||||||||||||||||||||||
Residential real estate | 361,325 | 19,016 | 380,341 | |||||||||||||||||||||||||
Consumer | 321,114 | 9,441 | 330,555 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 3,592,750 | $ | 285,113 | $ | 3,877,863 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | $ | 871,825 | $ | 78,372 | $ | 950,197 | ||||||||||||||||||||||
Commercial real estate | 1,390,820 | 138,863 | 1,529,683 | |||||||||||||||||||||||||
Total commercial and commercial real estate | 2,262,645 | 217,235 | 2,479,880 | |||||||||||||||||||||||||
Agricultural and agricultural real estate | 335,821 | 40,914 | 376,735 | |||||||||||||||||||||||||
Residential real estate | 333,161 | 16,188 | 349,349 | |||||||||||||||||||||||||
Consumer | 284,148 | 9,997 | 294,145 | |||||||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 3,215,775 | $ | 284,334 | $ | 3,500,109 | ||||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||||||||||||
Accruing Loans and Leases | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Current | Nonaccrual | Total Loans | ||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | and Leases | ||||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Commercial | $ | 980 | $ | 48 | $ | — | $ | 1,028 | $ | 1,032,707 | $ | 2,345 | $ | 1,036,080 | ||||||||||||||
Commercial real estate | 1,788 | 111 | — | 1,899 | 1,693,554 | 11,607 | 1,707,060 | |||||||||||||||||||||
Total commercial and commercial real estate | 2,768 | 159 | — | 2,927 | 2,726,261 | 13,952 | 2,743,140 | |||||||||||||||||||||
Agricultural and agricultural real estate | 119 | 50 | — | 169 | 422,219 | 1,439 | 423,827 | |||||||||||||||||||||
Residential real estate | 1,037 | 445 | — | 1,482 | 371,982 | 6,877 | 380,341 | |||||||||||||||||||||
Consumer | 2,382 | 1,366 | — | 3,748 | 324,005 | 2,802 | 330,555 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 6,306 | $ | 2,020 | $ | — | $ | 8,326 | $ | 3,844,467 | $ | 25,070 | $ | 3,877,863 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Commercial | $ | 697 | $ | 741 | $ | — | $ | 1,438 | $ | 935,508 | $ | 13,251 | $ | 950,197 | ||||||||||||||
Commercial real estate | 3,042 | 199 | 24 | 3,265 | 1,511,618 | 14,800 | 1,529,683 | |||||||||||||||||||||
Total commercial and commercial real estate | 3,739 | 940 | 24 | 4,703 | 2,447,126 | 28,051 | 2,479,880 | |||||||||||||||||||||
Agricultural and agricultural real estate | 818 | — | — | 818 | 369,907 | 6,010 | 376,735 | |||||||||||||||||||||
Residential real estate | 1,199 | 56 | — | 1,255 | 342,735 | 5,359 | 349,349 | |||||||||||||||||||||
Consumer | 2,624 | 1,089 | — | 3,713 | 287,458 | 2,974 | 294,145 | |||||||||||||||||||||
Total gross loans and leases receivable held to maturity | $ | 8,380 | $ | 2,085 | $ | 24 | $ | 10,489 | $ | 3,447,226 | $ | 42,394 | $ | 3,500,109 | ||||||||||||||
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 principal balance that was contractually due at December 31, 2014, and December 31, 2013, the outstanding loan balance recorded on the consolidated balance sheets at December 31, 2014, and December 31, 2013, any related allowance recorded for those loans as of December 31, 2014, and December 31, 2013, the average outstanding loan balance recorded on the consolidated balance sheets during the years ended December 31, 2014 and December 31, 2013, and the interest income recognized on the impaired loans during the year ended December 31, 2014, and year ended December 31, 2013, in thousands: | |||||||||||||||||||||||||||
Unpaid | Loan | Related | Year-to-Date | Year-to-Date | ||||||||||||||||||||||||
Principal | Balance | Allowance | Avg. Loan | Interest Income | ||||||||||||||||||||||||
Balance | Recorded | Balance | Recognized | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 780 | $ | 780 | $ | 754 | $ | 5,594 | $ | 19 | ||||||||||||||||||
Commercial real estate | 7,356 | 7,322 | 636 | 5,931 | 303 | |||||||||||||||||||||||
Total commercial and commercial real estate | 8,136 | 8,102 | 1,390 | 11,525 | 322 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 3,317 | 3,317 | 52 | 3,966 | 104 | |||||||||||||||||||||||
Residential real estate | 2,412 | 2,244 | 442 | 3,398 | 12 | |||||||||||||||||||||||
Consumer | 2,799 | 2,799 | 813 | 4,053 | 19 | |||||||||||||||||||||||
Total loans held to maturity | $ | 16,664 | $ | 16,462 | $ | 2,697 | $ | 22,942 | $ | 457 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 4,913 | $ | 3,746 | $ | — | $ | 3,499 | $ | 101 | ||||||||||||||||||
Commercial real estate | 32,708 | 28,449 | — | 24,522 | 1,172 | |||||||||||||||||||||||
Total commercial and commercial real estate | 37,621 | 32,195 | — | 28,021 | 1,273 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 3,961 | 1,732 | — | 3,308 | 13 | |||||||||||||||||||||||
Residential real estate | 8,200 | 7,991 | — | 6,267 | 110 | |||||||||||||||||||||||
Consumer | 3,350 | 3,344 | — | 1,870 | 127 | |||||||||||||||||||||||
Total loans held to maturity | $ | 53,132 | $ | 45,262 | $ | — | $ | 39,466 | $ | 1,523 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 5,693 | $ | 4,526 | $ | 754 | $ | 9,093 | $ | 120 | ||||||||||||||||||
Commercial real estate | 40,064 | 35,771 | 636 | 30,453 | 1,475 | |||||||||||||||||||||||
Total commercial and commercial real estate | 45,757 | 40,297 | 1,390 | 39,546 | 1,595 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 7,278 | 5,049 | 52 | 7,274 | 117 | |||||||||||||||||||||||
Residential real estate | 10,612 | 10,235 | 442 | 9,665 | 122 | |||||||||||||||||||||||
Consumer | 6,149 | 6,143 | 813 | 5,923 | 146 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 69,796 | $ | 61,724 | $ | 2,697 | $ | 62,408 | $ | 1,980 | ||||||||||||||||||
Unpaid | Loan | Related | Year-to-Date | Year-to-Date | ||||||||||||||||||||||||
Principal | Balance | Allowance | Avg. Loan | Interest Income | ||||||||||||||||||||||||
Balance | Recorded | Balance | Recognized | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Impaired loans with a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,901 | $ | 7,901 | $ | 2,817 | $ | 5,343 | $ | 38 | ||||||||||||||||||
Commercial real estate | 9,164 | 8,909 | 818 | 7,686 | 282 | |||||||||||||||||||||||
Total commercial and commercial real estate | 17,065 | 16,810 | 3,635 | 13,029 | 320 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 13,818 | 13,818 | 756 | 7,537 | 354 | |||||||||||||||||||||||
Residential real estate | 2,460 | 2,460 | 605 | 3,179 | 13 | |||||||||||||||||||||||
Consumer | 3,485 | 3,485 | 1,721 | 3,490 | 100 | |||||||||||||||||||||||
Total loans held to maturity | $ | 36,828 | $ | 36,573 | $ | 6,717 | $ | 27,235 | $ | 787 | ||||||||||||||||||
Impaired loans without a related allowance: | ||||||||||||||||||||||||||||
Commercial | $ | 7,724 | $ | 6,743 | $ | — | $ | 9,394 | $ | 89 | ||||||||||||||||||
Commercial real estate | 24,830 | 19,390 | — | 25,676 | 538 | |||||||||||||||||||||||
Total commercial and commercial real estate | 32,554 | 26,133 | — | 35,070 | 627 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 2,849 | 2,849 | — | 9,985 | 189 | |||||||||||||||||||||||
Residential real estate | 5,345 | 4,754 | — | 4,198 | 80 | |||||||||||||||||||||||
Consumer | 1,652 | 1,652 | — | 1,515 | 37 | |||||||||||||||||||||||
Total loans held to maturity | $ | 42,400 | $ | 35,388 | $ | — | $ | 50,768 | $ | 933 | ||||||||||||||||||
Total impaired loans held to maturity: | ||||||||||||||||||||||||||||
Commercial | $ | 15,625 | $ | 14,644 | $ | 2,817 | $ | 14,737 | $ | 127 | ||||||||||||||||||
Commercial real estate | 33,994 | 28,299 | 818 | 33,362 | 820 | |||||||||||||||||||||||
Total commercial and commercial real estate | 49,619 | 42,943 | 3,635 | 48,099 | 947 | |||||||||||||||||||||||
Agricultural and agricultural real estate | 16,667 | 16,667 | 756 | 17,522 | 543 | |||||||||||||||||||||||
Residential real estate | 7,805 | 7,214 | 605 | 7,377 | 93 | |||||||||||||||||||||||
Consumer | 5,137 | 5,137 | 1,721 | 5,005 | 137 | |||||||||||||||||||||||
Total impaired loans held to maturity | $ | 79,228 | $ | 71,961 | $ | 6,717 | $ | 78,003 | $ | 1,720 | ||||||||||||||||||
Impaired Financing Receivables | The carrying amount of the loans covered by these loss share agreements at December 31, 2014, and December 31, 2013, consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: | |||||||||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||
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 | $ | — | $ | 54 | $ | 54 | $ | 549 | $ | 1,765 | $ | 2,314 | ||||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | 543 | 543 | ||||||||||||||||||||||
Residential real estate | 305 | 899 | 1,204 | — | 2,280 | 2,280 | ||||||||||||||||||||||
Consumer loans | — | — | — | 538 | 74 | 612 | ||||||||||||||||||||||
Total Covered Loans | $ | 305 | $ | 953 | $ | 1,258 | $ | 1,087 | $ | 4,662 | $ | 5,749 | ||||||||||||||||
Loans and Leases Receivable, Related Parties Roll Forward | Loans are made in the normal course of business to directors, officers and principal holders of equity securities of Heartland. The terms of these loans, including interest rates and collateral, are similar to those prevailing for comparable transactions and do not involve more than a normal risk of collectability. Changes in such loans during the years ended December 31, 2014 and 2013, were as follows, in thousands: | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 113,604 | $ | 97,611 | ||||||||||||||||||||||||
Advances | 84,348 | 85,058 | ||||||||||||||||||||||||||
Repayments | (62,353 | ) | (69,065 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 135,599 | $ | 113,604 | ||||||||||||||||||||||||
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for loan and lease losses for the years ended December 31, 2014, 2013, and 2012 were as follows, in thousands: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of year | $ | 41,685 | $ | 38,715 | $ | 36,808 | ||||||||||||||||||
Provision for loan and lease losses | 14,501 | 9,697 | 8,202 | |||||||||||||||||||||
Recoveries on loans and leases previously charged-off | 3,990 | 4,820 | 8,209 | |||||||||||||||||||||
Loans and leases charged-off | (18,727 | ) | (11,547 | ) | (14,504 | ) | ||||||||||||||||||
Balance at end of year | $ | 41,449 | $ | 41,685 | $ | 38,715 | ||||||||||||||||||
Changes in the allowance for loan and lease losses by loan category for the years ended December 31, 2014 and December 31, 2013, were as follows, in thousands: | ||||||||||||||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Total | |||||||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13,099 | $ | 14,152 | $ | 2,992 | $ | 3,720 | $ | 7,722 | $ | 41,685 | ||||||||||||
Charge-offs | (8,749 | ) | (2,889 | ) | (2,251 | ) | (342 | ) | (4,496 | ) | (18,727 | ) | ||||||||||||
Recoveries | 753 | 2,290 | 11 | 148 | 788 | 3,990 | ||||||||||||||||||
Provision | 6,806 | 2,345 | 2,543 | 215 | 2,592 | 14,501 | ||||||||||||||||||
Balance at December 31, 2014 | $ | 11,909 | $ | 15,898 | $ | 3,295 | $ | 3,741 | $ | 6,606 | $ | 41,449 | ||||||||||||
Commercial | Commercial | Agricultural | Residential | Consumer | Total | |||||||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 11,388 | $ | 14,473 | $ | 2,138 | $ | 3,543 | $ | 7,173 | $ | 38,715 | ||||||||||||
Charge-offs | (2,460 | ) | (3,251 | ) | (23 | ) | (1,036 | ) | (4,777 | ) | (11,547 | ) | ||||||||||||
Recoveries | 1,019 | 2,378 | 110 | 158 | 1,155 | 4,820 | ||||||||||||||||||
Provision | 3,152 | 552 | 767 | 1,055 | 4,171 | 9,697 | ||||||||||||||||||
Balance at December 31, 2013 | $ | 13,099 | $ | 14,152 | $ | 2,992 | $ | 3,720 | $ | 7,722 | $ | 41,685 | ||||||||||||
Premises_Furniture_and_Equipme1
Premises, Furniture and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Premises, Furniture and Equipment | Premises, furniture and equipment as of December 31, 2014, and December 31, 2013, were as follows, in thousands: | |||||||
2014 | 2013 | |||||||
Land and land improvements | $ | 36,186 | $ | 36,679 | ||||
Buildings and building improvements | 114,824 | 115,052 | ||||||
Furniture and equipment | 56,247 | 54,393 | ||||||
Total | 207,257 | 206,124 | ||||||
Less accumulated depreciation | (76,544 | ) | (70,410 | ) | ||||
Premises, furniture and equipment, net | $ | 130,713 | $ | 135,714 | ||||
Goodwill_Core_Deposit_Intangib1
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, are presented in the table below, in thousands: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||||||
Amortizing intangible assets: | ||||||||||||||||||||||||
Core deposit intangibles | $ | 21,069 | $ | 12,525 | $ | 8,544 | $ | 21,069 | $ | 10,345 | $ | 10,724 | ||||||||||||
Mortgage servicing rights | 37,825 | 12,841 | 24,984 | 32,160 | 10,372 | 21,788 | ||||||||||||||||||
Customer relationship intangible | 1,177 | 773 | 404 | 1,177 | 730 | 447 | ||||||||||||||||||
Total | $ | 60,071 | $ | 26,139 | $ | 33,932 | $ | 54,406 | $ | 21,447 | $ | 32,959 | ||||||||||||
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 | |||||||||||||||||||||
Year ending December 31, | ||||||||||||||||||||||||
2015 | $ | 1,780 | $ | 6,246 | $ | 42 | $ | 8,068 | ||||||||||||||||
2016 | 1,575 | 5,354 | 41 | 6,970 | ||||||||||||||||||||
2017 | 1,393 | 4,462 | 40 | 5,895 | ||||||||||||||||||||
2018 | 1,232 | 3,569 | 39 | 4,840 | ||||||||||||||||||||
2019 | 1,056 | 2,678 | 38 | 3,772 | ||||||||||||||||||||
Thereafter | 1,508 | 2,675 | 204 | 4,387 | ||||||||||||||||||||
Schedule of Servicing Assets at Fair Value | The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Balance at January 1 | $ | 21,788 | $ | 15,653 | ||||||||||||||||||||
Originations | 8,618 | 12,769 | ||||||||||||||||||||||
Amortization | (5,422 | ) | (7,314 | ) | ||||||||||||||||||||
Purchased MSR | — | 184 | ||||||||||||||||||||||
Valuation adjustment | — | 496 | ||||||||||||||||||||||
Balance at December 31 | $ | 24,984 | $ | 21,788 | ||||||||||||||||||||
Fair value of mortgage servicing rights | $ | 34,219 | $ | 31,965 | ||||||||||||||||||||
Mortgage servicing rights, net to servicing portfolio | 0.71 | % | 0.72 | % |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Banking and Thrift [Abstract] | ||||||||||||
Schedule of Maturities of Time Certificates | At December 31, 2014, the scheduled maturities of time certificates of deposit were as follows, in thousands: | |||||||||||
2015 | $ | 425,049 | ||||||||||
2016 | 178,921 | |||||||||||
2017 | 84,628 | |||||||||||
2018 | 32,732 | |||||||||||
2019 | 48,747 | |||||||||||
Thereafter | 15,259 | |||||||||||
$ | 785,336 | |||||||||||
Schedule of Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2014, 2013, and 2012, was as follows, in thousands: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Savings and money market accounts | $ | 8,042 | $ | 6,674 | $ | 6,736 | ||||||
Time certificates of deposit in denominations of $100,000 or more | 3,474 | 4,403 | 4,776 | |||||||||
Other time deposits | 6,638 | 8,891 | 10,718 | |||||||||
Interest expense on deposits | $ | 18,154 | $ | 19,968 | $ | 22,230 | ||||||
Shortterm_Borrowings_Tables
Short-term Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Short-term Borrowings | Average and maximum balances and rates on aggregate short-term borrowings outstanding during the years ended December 31, 2014, December 31, 2013, and December 31, 2012 were as follows, in thousands: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Maximum month-end balance | $ | 420,494 | $ | 408,756 | $ | 298,662 | ||||||
Average month-end balance | 307,470 | 274,352 | 248,048 | |||||||||
Weighted average interest rate for the year | 0.28 | % | 0.31 | % | 0.32 | % | ||||||
Weighted average interest rate at year-end | 0.19 | % | 0.19 | % | 0.31 | % | ||||||
Short-term borrowings, which Heartland defines as borrowings with an original maturity of one year or less, as of December 31, 2014 and 2013, were as follows, in thousands: | ||||||||||||
2014 | 2013 | |||||||||||
Securities sold under agreement to repurchase | $ | 240,214 | $ | 234,659 | ||||||||
Federal funds purchased | 14,050 | 69,097 | ||||||||||
Advances from the FHLB | 76,000 | 105,000 | ||||||||||
Total | $ | 330,264 | $ | 408,756 | ||||||||
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Schedule of Other Borrowings | Other borrowings, which Heartland defines as borrowings with an original maturity date of more than one year, outstanding at December 31, 2014 and 2013 were as follows, in thousands: | |||||||||||||
2014 | 2013 | |||||||||||||
Advances from the FHLB; weighted average call dates at December 31, 2014 and 2013 were July 2015 and October 2014, respectively; and weighted average interest rates were 2.35% and 3.06%, respectively | $ | 109,830 | $ | 113,453 | ||||||||||
Wholesale repurchase agreements; weighted average call dates at December 31, 2014 and 2013 were May 2015 and April 2014, respectively; and weighted average interest rates were 3.62% and 3.38%, respectively | 45,000 | 60,000 | ||||||||||||
Trust preferred securities | 125,065 | 124,860 | ||||||||||||
Senior notes | 29,500 | 37,500 | ||||||||||||
Note payable to unaffiliated bank | 10,369 | 11,719 | ||||||||||||
Contracts payable for purchase of real estate and other assets | 2,541 | 2,577 | ||||||||||||
Subordinated notes | 73,950 | — | ||||||||||||
Total | $ | 396,255 | $ | 350,109 | ||||||||||
Schedule of Repurchase Agreements | A schedule of Heartland's wholesale repurchase agreements outstanding as of December 31, 2014, were as follows, in thousands: | |||||||||||||
Amount | Interest Rate as | Issue | Maturity | Callable | ||||||||||
of 12/31/14(1) | Date | Date | Date | |||||||||||
Counterparty: | ||||||||||||||
Citigroup Global Markets | $ | 15,000 | 3.32 | % | 4/17/08 | 4/17/15 | 4/17/15 | |||||||
Citigroup Global Markets | 20,000 | 3.61 | % | (2) | 4/17/08 | 4/17/18 | 4/17/15 | |||||||
Barclays Capital | 10,000 | 4.07 | % | 7/1/08 | 7/1/18 | 7/1/15 | ||||||||
$ | 45,000 | |||||||||||||
(1) Interest rates are fixed with the exception of the interest rate on the $20.0 million transaction with Citigroup Global Markets. | ||||||||||||||
(2) Interest rate resets quarterly on the 17th of January, April, July and October of each year until maturity. Embedded within the contract is a cap interest rate of 3.61%. | ||||||||||||||
Schedule of Preferred Offerings Outstanding | A schedule of Heartland’s trust preferred offerings outstanding as of December 31, 2014, were as follows, in thousands: | |||||||||||||
Amount | Interest | Interest Rate as | Maturity | Callable | ||||||||||
Issued | Rate | of 12/31/14(1) | Date | Date | ||||||||||
Heartland Financial Statutory Trust III | $ | 20,619 | 8.25% | 8.25 | % | 10/10/33 | 3/31/15 | |||||||
Heartland Financial Statutory Trust IV | 25,774 | 2.75% over LIBOR | 2.99 | % | (2) | 3/17/34 | 3/17/15 | |||||||
Heartland Financial Statutory Trust V | 20,619 | 1.33% over LIBOR | 1.56 | % | (3) | 4/7/36 | 4/7/15 | |||||||
Heartland Financial Statutory Trust VI | 20,619 | 6.75% | 6.75 | % | (4) | 9/15/37 | 3/15/15 | |||||||
Heartland Financial Statutory Trust VII | 20,619 | 1.48% over LIBOR | 1.72 | % | (5) | 9/1/37 | 6/1/15 | |||||||
Morrill Statutory Trust I | 8,618 | 3.25% over LIBOR | 3.5 | % | (6) | 12/26/32 | 3/26/15 | |||||||
Morrill Statutory Trust II | 8,197 | 2.85% over LIBOR | 3.09 | % | (7) | 12/17/33 | 12/17/15 | |||||||
$ | 125,065 | |||||||||||||
(1) Effective weighted average interest rate as of December 31, 2014, was 6.00% due to interest rate swap transactions on the variable rate securities as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(2) Effective interest rate as of December 31, 2014, was 5.00% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(3) Effective interest rate as of December 31, 2014, was 4.69% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(4) Interest rate is fixed at 6.75% through June 15, 2017 then resets to 1.48% over LIBOR for the remainder of the term. | ||||||||||||||
(5) Effective interest rate as of December 31, 2014, was 4.70% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(6) Effective interest rate as of December 31, 2014, was 4.92% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
(7) Effective interest rate as of December 31, 2014, was 4.51% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||||||||||||||
Schedule of Maturities of Other Borrowings | Future payments at December 31, 2014, for other borrowings follow in the table below, in thousands. Callable FHLB advances and wholesale repurchase agreements are included in the table at their call date. | |||||||||||||
2015 | $ | 152,782 | ||||||||||||
2016 | 19,548 | |||||||||||||
2017 | 10,197 | |||||||||||||
2018 | 5,147 | |||||||||||||
2019 | 5,694 | |||||||||||||
Thereafter | 202,887 | |||||||||||||
Total | $ | 396,255 | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
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 December 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||
Notional | Fair | Balance Sheet | Receive | Weighted Average | Maturity | |||||||||||||
Amount | Value | Category | Rate | Pay Rate | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate swap | $ | 10,369 | $ | (248 | ) | Other Liabilities | 2.915 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (534 | ) | Other Liabilities | 0.243 | % | 2.255 | % | 3/17/21 | |||||||||
Interest rate swap | 20,000 | (1,046 | ) | Other Liabilities | 0.234 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,748 | ) | Other Liabilities | 0.232 | % | 3.355 | % | 1/7/20 | |||||||||
Interest rate swap | 10,000 | (35 | ) | Other Liabilities | 0.255 | % | 1.674 | % | 3/26/19 | |||||||||
Interest rate swap | 10,000 | (35 | ) | Other Liabilities | 0.243 | % | 1.658 | % | 3/18/19 | |||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate swap | $ | 11,719 | $ | (457 | ) | Other Liabilities | 2.917 | % | 5.14 | % | 4/20/16 | |||||||
Interest rate swap | 25,000 | (146 | ) | Other Liabilities | 0.244 | % | 2.58 | % | 3/17/14 | |||||||||
Interest rate swap | 20,000 | (1,507 | ) | Other Liabilities | 0.239 | % | 3.22 | % | 3/1/17 | |||||||||
Interest rate swap | 20,000 | (1,587 | ) | Other Liabilities | 0.243 | % | 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 year ended December 31, 2014, and December 31, 2013, 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) | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate swap | $ | 209 | Interest Expense | $ | (252 | ) | Other Income | $ | — | |||||||||
Interest rate swap | (534 | ) | Interest Expense | (386 | ) | Other Income | — | |||||||||||
Interest rate swap | 461 | Interest Expense | (604 | ) | Other Income | — | ||||||||||||
Interest rate swap | (161 | ) | Interest Expense | (632 | ) | Other Income | — | |||||||||||
Interest rate swap | (35 | ) | Interest Expense | (110 | ) | Other Income | — | |||||||||||
Interest rate swap | (35 | ) | Interest Expense | (109 | ) | Other Income | — | |||||||||||
Interest rate swap | 146 | Interest Expense | (146 | ) | Other Income | — | ||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate swap | $ | 254 | Interest Expense | $ | (276 | ) | Other Income | $ | — | |||||||||
Interest rate swap | 562 | Interest Expense | (583 | ) | Other Income | — | ||||||||||||
Interest rate swap | 679 | Interest Expense | (594 | ) | Other Income | — | ||||||||||||
Interest rate swap | 1,433 | Interest Expense | (616 | ) | 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 December 31, 2014, and December 31, 2013, in thousands: | |||||||||||||||||
Notional | Fair | Balance Sheet | ||||||||||||||||
Amount | Value | Category | ||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | $ | 74,863 | $ | 2,496 | Other Assets | |||||||||||||
Forward commitments | 88,484 | 275 | Other Assets | |||||||||||||||
Forward commitments | 218,337 | (1,619 | ) | Other Liabilities | ||||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | $ | 63,370 | $ | 1,809 | Other Assets | |||||||||||||
Forward commitments | 117,637 | 1,206 | Other Assets | |||||||||||||||
Forward commitments | 53,277 | (133 | ) | Other Liabilities | ||||||||||||||
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 year ended December 31, 2014, and December 31, 2013, in thousands: | ||||||||||||||||||
Income Statement Category | Year-to-Date | |||||||||||||||||
Gain(Loss) | ||||||||||||||||||
Recognized | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on Sale of Loans Held for Sale | $ | 2,422 | |||||||||||||||
Forward commitments | Gains on Sale of Loans Held for Sale | (2,417 | ) | |||||||||||||||
December 31, 2013 | ||||||||||||||||||
Interest rate lock commitments (mortgage) | Gains on Sale of Loans Held for Sale | $ | (10,518 | ) | ||||||||||||||
Forward commitments | Gains on Sale of Loans Held for Sale | 1,832 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income taxes for the years ended December 31, 2014, 2013, and 2012 were as follows, in thousands: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 5,833 | $ | 5,025 | $ | 11,513 | ||||||
State | 3,633 | 2,549 | 5,366 | |||||||||
Total current | $ | 9,466 | $ | 7,574 | $ | 16,879 | ||||||
Deferred: | ||||||||||||
Federal | $ | 2,703 | $ | 2,447 | $ | 404 | ||||||
State | 927 | 314 | 101 | |||||||||
Total deferred | $ | 3,630 | $ | 2,761 | $ | 505 | ||||||
Total income tax expense | $ | 13,096 | $ | 10,335 | $ | 17,384 | ||||||
Schedule of Deferred Tax Assets and Liabilities | Temporary differences between the amounts reported in the financial statements and the tax basis of assets and liabilities result in deferred taxes. Deferred tax assets and liabilities at December 31, 2014 and 2013, were as follows, in thousands: | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Tax effect of net unrealized loss on securities available for sale reflected in stockholders’ equity | $ | — | $ | 9,766 | ||||||||
Tax effect of net unrealized loss on derivatives reflected in stockholders’ equity | 1,162 | 1,270 | ||||||||||
Securities | 35 | 1,257 | ||||||||||
Allowance for loan and lease losses | 15,346 | 15,766 | ||||||||||
Deferred compensation | 6,384 | 4,674 | ||||||||||
Organization and acquisitions costs | 366 | 393 | ||||||||||
Net operating loss carryforwards | 5,149 | 4,463 | ||||||||||
Non-accrual loan interest | 691 | 830 | ||||||||||
OREO writedowns | 1,106 | 1,781 | ||||||||||
Rehab tax credit projects | 3,547 | 2,438 | ||||||||||
Mortgage repurchase obligation | 330 | 882 | ||||||||||
Self-funded health plan | 578 | — | ||||||||||
Other | 183 | 778 | ||||||||||
Gross deferred tax assets | 34,877 | 44,298 | ||||||||||
Valuation allowance | (6,333 | ) | (4,615 | ) | ||||||||
Total deferred tax assets | $ | 28,544 | $ | 39,683 | ||||||||
Deferred tax liabilities: | ||||||||||||
Tax effect of net unrealized gain on securities available for sale reflected in stockholders’ equity | $ | (2,427 | ) | $ | — | |||||||
Premises, furniture and equipment | (8,569 | ) | (8,660 | ) | ||||||||
Tax bad debt reserves | (21 | ) | (523 | ) | ||||||||
Purchase accounting | (5,787 | ) | (5,323 | ) | ||||||||
Prepaid expenses | (514 | ) | (621 | ) | ||||||||
Mortgage servicing rights | (10,355 | ) | (8,996 | ) | ||||||||
Deferred loan fees | (1,267 | ) | (75 | ) | ||||||||
Other | (375 | ) | (324 | ) | ||||||||
Gross deferred tax liabilities | $ | (29,315 | ) | $ | (24,522 | ) | ||||||
Net deferred tax asset (liability) | $ | (771 | ) | $ | 15,161 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | The actual income tax expense from continuing operations differs from the expected amounts (computed by applying the U.S. federal corporate tax rate of 35% to income before income taxes) as follows, in thousands: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed “expected” tax on net income | $ | 19,249 | $ | 16,493 | $ | 23,511 | ||||||
Increase (decrease) resulting from: | ||||||||||||
Nontaxable interest income | (6,246 | ) | (5,622 | ) | (4,539 | ) | ||||||
State income taxes, net of federal tax benefit | 2,964 | 1,861 | 3,099 | |||||||||
Tax credits | (3,819 | ) | (1,696 | ) | (6,669 | ) | ||||||
Valuation allowance | 853 | 209 | 1,851 | |||||||||
Other | 95 | (910 | ) | 131 | ||||||||
Income taxes | $ | 13,096 | $ | 10,335 | $ | 17,384 | ||||||
Effective tax rates | 23.8 | % | 21.9 | % | 25.9 | % | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended December 31, 2014 and 2013, follows, in thousands: | |||||||||||
2014 | 2013 | |||||||||||
Balance at January 1 | $ | 779 | $ | 773 | ||||||||
Additions for tax positions related to the current year | 71 | 65 | ||||||||||
Additions for tax positions related to prior years | 37 | 188 | ||||||||||
Reductions for tax positions related to prior years | (181 | ) | (247 | ) | ||||||||
Balance at December 31 | $ | 706 | $ | 779 | ||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Heartland leases certain land and facilities under operating leases. Minimum future rental commitments at December 31, 2014 for all non-cancelable leases were as follows, in thousands: | |||
2015 | $ | 4,194 | ||
2016 | 4,060 | |||
2017 | 2,971 | |||
2018 | 2,354 | |||
2019 | 1,920 | |||
Thereafter | 12,220 | |||
$ | 27,719 | |||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Stock Options, Activity | A summary of the status of the stock options as of December 31, 2014, 2013, and 2012, and changes during the years ended December 31, 2014 2013, and 2012, follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | ||||||||||||||||
Outstanding at January 1 | 261,936 | $ | 23.6 | 377,907 | $ | 22.62 | 570,762 | $ | 21.06 | ||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||
Exercised | (24,334 | ) | 20.2 | (96,921 | ) | 19.73 | (172,521 | ) | 17.39 | ||||||||||||
Forfeited | (21,751 | ) | 24.97 | (19,050 | ) | 23.79 | (20,334 | ) | 23.42 | ||||||||||||
Outstanding at December 31 | 215,851 | $ | 23.85 | 261,936 | $ | 23.6 | 377,907 | $ | 22.62 | ||||||||||||
Options exercisable at December 31 | 215,851 | $ | 23.85 | 261,936 | $ | 23.6 | 333,024 | $ | 23.16 | ||||||||||||
Schedule of Restricted Stock Units, Activity | A summary of the status of RSUs as of December 31, 2014, 2013, and 2012, and changes during the years ended December 31, 2014, 2013, and 2012, follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding at January 1 | 353,070 | $ | 18.48 | 348,897 | $ | 15.75 | 211,279 | $ | 15.79 | ||||||||||||
Granted | 131,560 | 26.71 | 126,685 | 26.92 | 149,002 | 16.36 | |||||||||||||||
Vested | (73,554 | ) | 16.65 | (43,388 | ) | 17 | — | — | |||||||||||||
Forfeited | (14,521 | ) | 20.48 | (79,124 | ) | 20.79 | (11,384 | ) | 16.03 | ||||||||||||
Outstanding at December 31 | 396,555 | $ | 21.48 | 353,070 | $ | 18.48 | 348,897 | $ | 15.75 | ||||||||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements and Restrictions on Subsidiary Dividends (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Heartland banks’ actual capital amounts and ratios are also presented in the tables below, in thousands: | |||||||||||||||||||
Actual | For Capital | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Adequacy Purposes | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 703,032 | 15.73 | % | $ | 357,513 | 8 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 145,587 | 11.92 | 97,676 | 8 | 122,094 | 10 | % | |||||||||||||
Galena State Bank & Trust Co. | 27,644 | 13.39 | 16,517 | 8 | 20,646 | 10 | ||||||||||||||
Illinois Bank & Trust | 42,937 | 13.8 | 24,891 | 8 | 31,113 | 10 | ||||||||||||||
Wisconsin Bank & Trust | 62,780 | 12.71 | 39,522 | 8 | 49,403 | 10 | ||||||||||||||
New Mexico Bank & Trust | 97,742 | 13.04 | 59,953 | 8 | 74,941 | 10 | ||||||||||||||
Arizona Bank & Trust | 51,287 | 14.57 | 28,151 | 8 | 35,189 | 10 | ||||||||||||||
Rocky Mountain Bank | 47,848 | 12.78 | 29,958 | 8 | 37,447 | 10 | ||||||||||||||
Summit Bank & Trust | 12,544 | 11.8 | 8,503 | 8 | 10,628 | 10 | ||||||||||||||
Minnesota Bank & Trust | 15,267 | 12.43 | 9,823 | 8 | 12,279 | 10 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 65,224 | 12.02 | 43,417 | 8 | 54,271 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 578,564 | 12.95 | % | $ | 178,757 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 136,178 | 11.15 | 48,838 | 4 | 73,257 | 6 | % | |||||||||||||
Galena State Bank & Trust Co. | 26,111 | 12.65 | 8,258 | 4 | 12,387 | 6 | ||||||||||||||
Illinois Bank & Trust | 39,721 | 12.77 | 12,445 | 4 | 18,668 | 6 | ||||||||||||||
Wisconsin Bank & Trust | 57,551 | 11.65 | 19,761 | 4 | 29,642 | 6 | ||||||||||||||
New Mexico Bank & Trust | 90,870 | 12.13 | 29,977 | 4 | 44,965 | 6 | ||||||||||||||
Arizona Bank & Trust | 48,009 | 13.64 | 14,076 | 4 | 21,114 | 6 | ||||||||||||||
Rocky Mountain Bank | 44,394 | 11.86 | 14,979 | 4 | 22,468 | 6 | ||||||||||||||
Summit Bank & Trust | 11,213 | 10.55 | 4,251 | 4 | 6,377 | 6 | ||||||||||||||
Minnesota Bank & Trust | 14,151 | 11.53 | 4,911 | 4 | 7,367 | 6 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 62,918 | 11.59 | 21,709 | 4 | 32,563 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||
Consolidated | $ | 578,564 | 9.75 | % | $ | 237,316 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 136,178 | 9.5 | 57,359 | 4 | 71,699 | 5 | % | |||||||||||||
Galena State Bank & Trust Co. | 26,111 | 8.97 | 11,648 | 4 | 14,560 | 5 | ||||||||||||||
Illinois Bank & Trust | 39,721 | 8.02 | 19,820 | 4 | 24,775 | 5 | ||||||||||||||
Wisconsin Bank & Trust | 57,551 | 8.85 | 26,018 | 4 | 32,523 | 5 | ||||||||||||||
New Mexico Bank & Trust | 90,870 | 8.22 | 44,232 | 4 | 55,290 | 5 | ||||||||||||||
Arizona Bank & Trust | 48,009 | 10.25 | 18,737 | 4 | 23,421 | 5 | ||||||||||||||
Rocky Mountain Bank | 44,394 | 9.53 | 18,625 | 4 | 23,281 | 5 | ||||||||||||||
Summit Bank & Trust | 11,213 | 8.44 | 5,317 | 4 | 6,647 | 5 | ||||||||||||||
Minnesota Bank & Trust | 14,151 | 8.9 | 6,360 | 4 | 7,950 | 5 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 62,918 | 7.34 | 34,269 | 4 | 42,836 | 5 | ||||||||||||||
Actual | For Capital | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
Adequacy Purposes | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 599,038 | 14.69 | % | $ | 326,252 | 8 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 141,184 | 12.3 | 91,854 | 8 | 114,818 | 10 | % | |||||||||||||
Galena State Bank & Trust Co. | 27,398 | 13.42 | 16,328 | 8 | 20,410 | 10 | ||||||||||||||
Illinois Bank & Trust | 36,324 | 14.79 | 19,654 | 8 | 24,568 | 10 | ||||||||||||||
Wisconsin Bank & Trust | 59,747 | 13.08 | 36,556 | 8 | 45,696 | 10 | ||||||||||||||
New Mexico Bank & Trust | 96,816 | 14.82 | 52,254 | 8 | 65,317 | 10 | ||||||||||||||
Arizona Bank & Trust | 47,335 | 14.59 | 25,960 | 8 | 32,451 | 10 | ||||||||||||||
Rocky Mountain Bank | 50,314 | 14.24 | 28,257 | 8 | 35,321 | 10 | ||||||||||||||
Summit Bank & Trust | 11,600 | 12.79 | 7,253 | 8 | 9,067 | 10 | ||||||||||||||
Minnesota Bank & Trust | 14,475 | 12.13 | 9,547 | 8 | 11,933 | 10 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,559 | 13 | 37,267 | 8 | 46,583 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||
Consolidated | $ | 537,964 | 13.19 | % | $ | 163,126 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 130,859 | 11.4 | 45,927 | 4 | 68,891 | 6 | % | |||||||||||||
Galena State Bank & Trust Co. | 25,478 | 12.48 | 8,164 | 4 | 12,246 | 6 | ||||||||||||||
Illinois Bank & Trust | 33,252 | 13.53 | 9,827 | 4 | 14,741 | 6 | ||||||||||||||
Wisconsin Bank & Trust | 54,885 | 12.01 | 18,278 | 4 | 27,417 | 6 | ||||||||||||||
New Mexico Bank & Trust | 89,601 | 13.72 | 26,127 | 4 | 39,190 | 6 | ||||||||||||||
Arizona Bank & Trust | 43,269 | 13.33 | 12,980 | 4 | 19,470 | 6 | ||||||||||||||
Rocky Mountain Bank | 46,160 | 13.07 | 14,128 | 4 | 21,193 | 6 | ||||||||||||||
Summit Bank & Trust | 10,464 | 11.54 | 3,627 | 4 | 5,440 | 6 | ||||||||||||||
Minnesota Bank & Trust | 13,384 | 11.22 | 4,773 | 4 | 7,160 | 6 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,153 | 12.91 | 18,633 | 4 | 27,950 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||
Consolidated | $ | 537,964 | 9.67 | % | $ | 222,432 | 4 | % | N/A | |||||||||||
Dubuque Bank and Trust Company | 130,859 | 8.77 | 59,717 | 4 | 74,646 | 5 | % | |||||||||||||
Galena State Bank & Trust Co. | 25,478 | 8.65 | 11,787 | 4 | 14,734 | 5 | ||||||||||||||
Illinois Bank & Trust | 33,252 | 7.42 | 17,926 | 4 | 22,407 | 5 | ||||||||||||||
Wisconsin Bank & Trust | 54,885 | 8.76 | 25,070 | 4 | 31,337 | 5 | ||||||||||||||
New Mexico Bank & Trust | 89,601 | 8.84 | 40,530 | 4 | 50,663 | 5 | ||||||||||||||
Arizona Bank & Trust | 43,269 | 10.33 | 16,757 | 4 | 20,947 | 5 | ||||||||||||||
Rocky Mountain Bank | 46,160 | 10.01 | 18,439 | 4 | 23,049 | 5 | ||||||||||||||
Summit Bank & Trust | 10,464 | 9.16 | 4,567 | 4 | 5,709 | 5 | ||||||||||||||
Minnesota Bank & Trust | 13,384 | 8.14 | 6,575 | 4 | 8,218 | 5 | ||||||||||||||
Morrill & Janes Bank and Trust Company | 60,153 | 7.38 | 32,624 | 4 | 40,780 | 5 | ||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 December 31, 2014, and December 31, 2013, 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 | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Trading securities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. government corporations and agencies | 24,093 | 2,529 | 21,564 | — | ||||||||||||||||
Mortgage-backed securities | 1,219,266 | — | 1,214,319 | 4,947 | ||||||||||||||||
Obligations of states and political subdivisions | 153,426 | — | 153,426 | — | ||||||||||||||||
Equity securities | 5,083 | — | 5,083 | — | ||||||||||||||||
Interest rate lock commitments | 2,496 | — | — | 2,496 | ||||||||||||||||
Forward commitments | 275 | — | 275 | — | ||||||||||||||||
Total assets at fair value | $ | 1,404,639 | $ | 2,529 | $ | 1,394,667 | $ | 7,443 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative financial instruments | $ | 3,646 | $ | — | $ | 3,646 | $ | — | ||||||||||||
Forward commitments | 1,619 | — | 1,619 | — | ||||||||||||||||
Total liabilities at fair value | $ | 5,265 | $ | — | $ | 5,265 | $ | — | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Trading securities | $ | 1,801 | $ | 1,801 | $ | — | $ | — | ||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. government corporations and agencies | 218,303 | 4,084 | 214,219 | — | ||||||||||||||||
Mortgage-backed securities | 1,143,947 | — | 1,140,649 | 3,298 | ||||||||||||||||
Obligations of states and political subdivisions | 266,624 | — | 266,624 | — | ||||||||||||||||
Equity securities | 5,028 | — | 5,028 | — | ||||||||||||||||
Interest rate lock commitments | 1,809 | — | — | 1,809 | ||||||||||||||||
Forward commitments | 1,206 | — | 1,206 | — | ||||||||||||||||
Total assets at fair value | $ | 1,638,718 | $ | 5,885 | $ | 1,627,726 | $ | 5,107 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivative financial instruments | $ | 3,697 | $ | — | $ | 3,697 | $ | — | ||||||||||||
Forward commitments | 133 | — | 133 | — | ||||||||||||||||
Total liabilities at fair value | $ | 3,830 | $ | — | $ | 3,830 | $ | — | ||||||||||||
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 December 31, 2014 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 1,033 | $ | — | $ | — | $ | 1,033 | $ | 659 | ||||||||||
Commercial real estate | 12,584 | — | — | 12,584 | 492 | |||||||||||||||
Agricultural and agricultural real estate | 552 | — | — | 552 | 2,229 | |||||||||||||||
Residential real estate | 3,173 | — | — | 3,173 | — | |||||||||||||||
Consumer | 2,003 | — | — | 2,003 | 22 | |||||||||||||||
Total collateral dependent impaired loans | $ | 19,345 | $ | — | $ | — | $ | 19,345 | $ | 3,402 | ||||||||||
Other real estate owned | $ | 19,016 | $ | — | $ | — | $ | 19,016 | $ | 1,938 | ||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | Losses | ||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 7,229 | $ | — | $ | — | $ | 7,229 | $ | 919 | ||||||||||
Commercial real estate | 7,749 | — | — | 7,749 | 1,881 | |||||||||||||||
Agricultural and agricultural real estate | 13,062 | — | — | 13,062 | — | |||||||||||||||
Residential real estate | 3,396 | — | — | 3,396 | — | |||||||||||||||
Consumer | 1,763 | — | — | 1,763 | — | |||||||||||||||
Total collateral dependent impaired loans | $ | 33,199 | $ | — | $ | — | $ | 33,199 | $ | 2,800 | ||||||||||
Other real estate owned | $ | 29,852 | $ | — | $ | — | $ | 29,852 | $ | 2,799 | ||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: | |||||||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/14 | Technique | Input | (Weighted Average) | |||||||||||||||||
Z-TRANCHE Securities | $ | 4,947 | Discounted cash flows | Pretax discount rate | 7 - 9% | |||||||||||||||
Actual defaults | 15.60 - 30.60% (24.50%) | |||||||||||||||||||
Actual deferrals | 7.20 - 17.30% (12.90%) | |||||||||||||||||||
Interest rate lock commitments | 2,496 | Fair Value of | Closing ratio | -1 | ||||||||||||||||
Underlying Loan to | ||||||||||||||||||||
Secondary Market | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 1,033 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Commercial real estate | 12,584 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Agricultural and agricultural real estate | 552 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Residential real estate | 3,173 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Consumer | 2,003 | Modified appraised value | Third party valuation | -2 | ||||||||||||||||
Valuation discount | -2 | |||||||||||||||||||
Other real estate owned | 19,016 | Modified appraised value | Disposal costs | -2 | ||||||||||||||||
Third party appraisal | -2 | |||||||||||||||||||
Appraisal discounts | -2 | |||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2014 was 84%. | ||||||||||||||||||||
(2) 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 | Valuation | Unobservable | Range | |||||||||||||||||
at 12/31/13 | Technique | Input | (Weighted Average) | |||||||||||||||||
Z-TRANCHE Securities | $ | 3,298 | Discounted cash flows | Pretax discount rate | 7 - 9% | |||||||||||||||
Actual defaults | 12.50 - 28.20% (20.80%) | |||||||||||||||||||
Actual deferrals | 5.10 - 16.00% (11.10%) | |||||||||||||||||||
Interest rate lock commitments | 1,809 | Fair Value of | Closing ratio | -1 | ||||||||||||||||
Underlying Loan to | ||||||||||||||||||||
Secondary Market | ||||||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | 7,229 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Commercial real estate | 7,749 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Agricultural and agricultural real estate | 13,062 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Residential real estate | 3,396 | Modified appraised value | Third party appraisal | -2 | ||||||||||||||||
Appraisal discount | -2 | |||||||||||||||||||
Consumer | 1,763 | Modified appraised value | Third party valuation | -2 | ||||||||||||||||
Valuation discount | -2 | |||||||||||||||||||
Other real estate owned | 29,852 | Modified appraised value | Disposal costs | -2 | ||||||||||||||||
Third party appraisal | -2 | |||||||||||||||||||
Appraisal discounts | -2 | |||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2013 was 87%. | ||||||||||||||||||||
(2) 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 the Z-TRANCHE, a Level 3 asset, that is measured at fair value on a recurring basis is summarized in the following table, in thousands: | |||||||||||||||||||
For the Years Ended | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Balance at January 1, | $ | 3,298 | $ | 4,089 | ||||||||||||||||
Total gains (losses), net: | ||||||||||||||||||||
Included in earnings | — | (1,587 | ) | |||||||||||||||||
Included in other comprehensive income | 1,783 | 826 | ||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||
Purchases | — | — | ||||||||||||||||||
Sales | — | — | ||||||||||||||||||
Settlements | (134 | ) | (30 | ) | ||||||||||||||||
Balance at period end, | $ | 4,947 | $ | 3,298 | ||||||||||||||||
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 below 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 | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
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 | $ | 73,871 | $ | 73,871 | $ | 73,871 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | 2,605 | 2,605 | 2,605 | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | — | — | — | — | — | |||||||||||||||
Available for sale | 1,401,868 | 1,401,868 | 2,529 | 1,394,392 | 4,947 | |||||||||||||||
Held to maturity | 284,587 | 296,768 | — | 296,768 | — | |||||||||||||||
Other investments | 20,498 | 20,498 | — | 20,263 | 235 | |||||||||||||||
Loans held for sale | 70,514 | 70,514 | — | 70,514 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 1,024,065 | 1,009,802 | — | 1,008,769 | 1,033 | |||||||||||||||
Commercial real estate | 1,690,899 | 1,699,722 | — | 1,687,138 | 12,584 | |||||||||||||||
Agricultural and agricultural real estate | 420,623 | 423,968 | — | 423,416 | 552 | |||||||||||||||
Residential real estate | 377,094 | 370,178 | — | 367,005 | 3,173 | |||||||||||||||
Consumer | 323,873 | 330,211 | — | 328,208 | 2,003 | |||||||||||||||
Total Loans, net | 3,836,554 | 3,833,881 | — | 3,814,536 | 19,345 | |||||||||||||||
Derivative financial instruments | — | — | — | — | — | |||||||||||||||
Interest rate lock commitments | 2,496 | 2,496 | — | — | 2,496 | |||||||||||||||
Forward commitments | 275 | 275 | — | 275 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,295,193 | 1,295,193 | — | 1,295,193 | — | |||||||||||||||
Savings deposits | 2,687,493 | 2,687,493 | — | 2,687,493 | — | |||||||||||||||
Time deposits | 785,336 | 785,336 | — | 785,336 | — | |||||||||||||||
Short term borrowings | 330,264 | 330,264 | — | 330,264 | — | |||||||||||||||
Other borrowings | 396,255 | 401,978 | — | 401,978 | — | |||||||||||||||
Derivative financial instruments | 3,646 | 3,646 | — | 3,646 | — | |||||||||||||||
Forward commitments | 1,619 | 1,619 | — | 1,619 | — | |||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
31-Dec-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 | $ | 125,270 | $ | 125,270 | $ | 125,270 | $ | — | $ | — | ||||||||||
Time deposits in other financial institutions | — | — | — | — | — | |||||||||||||||
Securities: | ||||||||||||||||||||
Trading | 1,801 | 1,801 | 1,801 | — | — | |||||||||||||||
Available for sale | 1,633,902 | 1,633,902 | 4,084 | 1,626,520 | 3,298 | |||||||||||||||
Held to maturity | 237,498 | 237,437 | — | 237,437 | — | |||||||||||||||
Other investments | 21,843 | 21,843 | — | 21,608 | 235 | |||||||||||||||
Loans held for sale | 46,665 | 46,665 | — | 46,665 | — | |||||||||||||||
Loans, net: | ||||||||||||||||||||
Commercial | 936,305 | 930,501 | — | 923,272 | 7,229 | |||||||||||||||
Commercial real estate | 1,516,352 | 1,512,773 | — | 1,505,024 | 7,749 | |||||||||||||||
Agricultural and agricultural real estate | 374,203 | 378,086 | — | 365,024 | 13,062 | |||||||||||||||
Residential real estate | 347,266 | 335,362 | — | 331,966 | 3,396 | |||||||||||||||
Consumer | 286,890 | 273,139 | — | 271,376 | 1,763 | |||||||||||||||
Total Loans, net | 3,461,016 | 3,429,861 | — | 3,396,662 | 33,199 | |||||||||||||||
Derivative financial instruments | — | — | — | — | — | |||||||||||||||
Interest rate lock commitments | 1,809 | 1,809 | — | — | 1,809 | |||||||||||||||
Forward commitments | 1,206 | 1,206 | — | 1,206 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Demand deposits | 1,238,581 | 1,238,581 | — | 1,238,581 | — | |||||||||||||||
Savings deposits | 2,535,242 | 2,535,242 | — | 2,535,242 | — | |||||||||||||||
Time deposits | 892,676 | 892,676 | — | 892,676 | — | |||||||||||||||
Short term borrowings | 408,756 | 408,756 | — | 408,756 | — | |||||||||||||||
Other borrowings | 350,109 | 355,923 | — | 355,923 | — | |||||||||||||||
Derivative financial instruments | 3,697 | 3,697 | — | 3,697 | — | |||||||||||||||
Forward commitments | 133 | 133 | — | 133 | — | |||||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Segment Reporting | The following table presents the financial information from Heartland's operating segments for the years ending December 31, 2014, December 31, 2013, and December 31, 2012, in thousands. | |||||||||||
Community and Other Banking | Mortgage Banking | Total | ||||||||||
31-Dec-14 | ||||||||||||
Net Interest Income | $ | 200,394 | $ | 2,679 | $ | 203,073 | ||||||
Provision for loan losses | 14,501 | — | 14,501 | |||||||||
Total noninterest income | 48,330 | 33,894 | 82,224 | |||||||||
Total noninterest expense | 172,392 | 43,408 | 215,800 | |||||||||
Income (loss) before income taxes | $ | 61,831 | $ | (6,835 | ) | $ | 54,996 | |||||
December 31, 2013 | ||||||||||||
Net Interest Income | $ | 161,452 | $ | 2,376 | $ | 163,828 | ||||||
Provision for loan losses | 9,697 | — | 9,697 | |||||||||
Total noninterest income | 49,810 | 39,808 | 89,618 | |||||||||
Total noninterest expense | 150,767 | 45,794 | 196,561 | |||||||||
Income (loss) before income taxes | $ | 50,798 | $ | (3,610 | ) | $ | 47,188 | |||||
December 31, 2012 | ||||||||||||
Net Interest Income | $ | 147,903 | $ | 2,253 | $ | 150,156 | ||||||
Provision for loan losses | 8,202 | — | 8,202 | |||||||||
Total noninterest income | 50,947 | 57,715 | 108,662 | |||||||||
Total noninterest expense | 142,646 | 40,735 | 183,381 | |||||||||
Income before income taxes | $ | 48,002 | $ | 19,233 | $ | 67,235 | ||||||
Segment Assets | ||||||||||||
31-Dec-14 | $ | 5,951,875 | $ | 100,487 | $ | 6,052,362 | ||||||
31-Dec-13 | 5,850,976 | 72,740 | 5,923,716 | |||||||||
December 31, 2012 | 4,868,618 | 121,935 | 4,990,553 | |||||||||
Average Loans | ||||||||||||
31-Dec-14 | $ | 3,679,908 | $ | 64,922 | $ | 3,744,830 | ||||||
31-Dec-13 | 2,939,856 | 76,577 | 3,016,433 | |||||||||
31-Dec-12 | 2,605,151 | 91,301 | 2,696,452 | |||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Schedule of Condensed Balance Sheet | Condensed financial information for Heartland Financial USA, Inc. is as follows: | |||||||||||
BALANCE SHEETS | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash and interest bearing deposits | $ | 124,387 | $ | 17,912 | ||||||||
Trading securities | — | 1,801 | ||||||||||
Securities available for sale | 5,684 | 3,952 | ||||||||||
Other investments, at cost | 235 | 235 | ||||||||||
Investment in subsidiaries | 592,324 | 561,272 | ||||||||||
Other assets | 19,272 | 33,407 | ||||||||||
Due from subsidiaries | 6,000 | 6,000 | ||||||||||
Total assets | $ | 747,902 | $ | 624,579 | ||||||||
Liabilities and stockholders’ equity: | ||||||||||||
Other borrowings | $ | 238,941 | $ | 174,153 | ||||||||
Accrued expenses and other liabilities | 12,644 | 10,966 | ||||||||||
Total liabilities | 251,585 | 185,119 | ||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock | 81,698 | 81,698 | ||||||||||
Common stock | 18,511 | 18,399 | ||||||||||
Capital surplus | 95,816 | 91,632 | ||||||||||
Retained earnings | 298,764 | 265,067 | ||||||||||
Accumulated other comprehensive income (loss) | 1,528 | (17,336 | ) | |||||||||
Treasury stock | — | — | ||||||||||
Total stockholders’ equity | 496,317 | 439,460 | ||||||||||
Total liabilities and stockholders’ equity | $ | 747,902 | $ | 624,579 | ||||||||
Schedule of Condensed Income Statement | ||||||||||||
INCOME STATEMENTS | ||||||||||||
(Dollars in thousands) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating revenues: | ||||||||||||
Dividends from subsidiaries | $ | 47,485 | $ | 47,750 | $ | 42,800 | ||||||
Securities gains, net | — | 2,316 | — | |||||||||
Gain on trading account securities | (38 | ) | 1,421 | 47 | ||||||||
Other | 640 | 726 | 664 | |||||||||
Total operating revenues | 48,087 | 52,213 | 43,511 | |||||||||
Operating expenses: | ||||||||||||
Interest | 10,052 | 9,206 | 9,133 | |||||||||
Salaries and benefits | 5,584 | 5,104 | 6,191 | |||||||||
Professional fees | 3,406 | 3,671 | 3,100 | |||||||||
Other operating expenses | 2,173 | 1,577 | 2,417 | |||||||||
Total operating expenses | 21,215 | 19,558 | 20,841 | |||||||||
Equity in undistributed earnings (losses) | 6,749 | (1,275 | ) | 19,739 | ||||||||
Income before income tax benefit | 33,621 | 31,380 | 42,409 | |||||||||
Income tax benefit | 8,279 | 5,409 | 7,383 | |||||||||
Net income | 41,900 | 36,789 | 49,792 | |||||||||
Preferred dividends and discount | (817 | ) | (1,093 | ) | (3,400 | ) | ||||||
Net income available to common stockholders | $ | 41,083 | $ | 35,696 | $ | 46,392 | ||||||
Schedule of Condensed Cash Flow Statement | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
(Dollars in thousands) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 41,900 | $ | 36,789 | $ | 49,792 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Undistributed (earnings) losses of subsidiaries | (6,749 | ) | 1,275 | (19,739 | ) | |||||||
Security gains, net | — | (2,316 | ) | — | ||||||||
(Increase) decrease in due from subsidiaries | — | 1,000 | (4,250 | ) | ||||||||
Increase (decrease) in accrued expenses and other liabilities | 1,678 | (6,125 | ) | 4,448 | ||||||||
(Increase) decrease in other assets | 14,135 | (4,104 | ) | (7,163 | ) | |||||||
(Increase) decrease in trading account securities | 1,801 | (1,421 | ) | (47 | ) | |||||||
Other, net | 3,086 | 4,089 | 1,776 | |||||||||
Net cash provided by operating activities | 55,851 | 29,187 | 24,817 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital contributions to subsidiaries | (6,735 | ) | (69,429 | ) | (32,841 | ) | ||||||
Purchases of other securities | — | — | (195 | ) | ||||||||
Proceeds from sales of available for sale securities | — | 2,925 | — | |||||||||
Proceeds from sale of other investments | — | — | 155 | |||||||||
Net assets acquired | — | 44,697 | — | |||||||||
Net cash used by investing activities | (6,735 | ) | (21,807 | ) | (32,881 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from other borrowings | 73,950 | 80 | 10,000 | |||||||||
Repayments of other borrowings | (9,162 | ) | (1,255 | ) | (6,374 | ) | ||||||
Cash dividends paid | (8,203 | ) | (8,001 | ) | (11,695 | ) | ||||||
Purchase of treasury stock | (899 | ) | (2,004 | ) | (2,937 | ) | ||||||
Proceeds from issuance of common stock | 1,673 | 4,265 | 9,557 | |||||||||
Net cash provided (used) by financing activities | 57,359 | (6,915 | ) | (1,449 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 106,475 | 465 | (9,513 | ) | ||||||||
Cash and cash equivalents at beginning of year | 17,912 | 17,447 | 26,960 | |||||||||
Cash and cash equivalents at end of year | $ | 124,387 | $ | 17,912 | $ | 17,447 | ||||||
Supplemental disclosure: | ||||||||||||
Stock consideration granted for acquisition | $ | — | $ | 38,755 | $ | — | ||||||
Summary_of_Quarterly_Financial1
Summary of Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of Quarterly Financial Information (Unaudited) | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
2014 | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||
Net interest income | $ | 52,171 | $ | 51,491 | $ | 50,799 | $ | 48,612 | ||||||||
Provision for loan and lease losses | 2,866 | 2,553 | 2,751 | 6,331 | ||||||||||||
Net interest income after provision for loan and lease losses | 49,305 | 48,938 | 48,048 | 42,281 | ||||||||||||
Noninterest income | 21,233 | 20,606 | 21,535 | 18,850 | ||||||||||||
Noninterest expense | 53,948 | 54,655 | 54,659 | 52,538 | ||||||||||||
Income taxes | 4,327 | 2,916 | 4,150 | 1,703 | ||||||||||||
Net income | 12,263 | 11,973 | 10,774 | 6,890 | ||||||||||||
Net income available to noncontrolling interest, net of tax | — | — | — | — | ||||||||||||
Net income attributable to Heartland | 12,263 | 11,973 | 10,774 | 6,890 | ||||||||||||
Preferred stock dividends and discount | (204 | ) | (205 | ) | (204 | ) | (204 | ) | ||||||||
Net income available to common stockholders | 12,059 | 11,768 | 10,570 | 6,686 | ||||||||||||
Per share: | ||||||||||||||||
Earnings per share-basic | $ | 0.65 | $ | 0.64 | $ | 0.57 | $ | 0.36 | ||||||||
Earnings per share-diluted | 0.64 | 0.63 | 0.56 | 0.36 | ||||||||||||
Cash dividends declared on common stock | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Book value per common share | 22.4 | 21.74 | 21.16 | 20.36 | ||||||||||||
Weighted average common shares outstanding | 18,482,059 | 18,468,762 | 18,458,113 | 18,437,253 | ||||||||||||
Weighted average diluted common shares outstanding | 18,762,272 | 18,752,748 | 18,746,735 | 18,724,936 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
2013 | 31-Dec | 30-Sep | 30-Jun | 31-Mar | ||||||||||||
Net interest income | $ | 46,357 | $ | 39,880 | $ | 38,924 | $ | 38,667 | ||||||||
Provision for loan and lease losses | 2,049 | 5,149 | 1,862 | 637 | ||||||||||||
Net interest income after provision for loan and lease losses | 44,308 | 34,731 | 37,062 | 38,030 | ||||||||||||
Noninterest income | 17,574 | 20,718 | 24,858 | 26,468 | ||||||||||||
Noninterest expense | 53,901 | 47,147 | 48,766 | 46,747 | ||||||||||||
Income taxes | 46 | 1,492 | 3,598 | 5,199 | ||||||||||||
Net income | 7,935 | 6,810 | 9,556 | 12,552 | ||||||||||||
Net income available to noncontrolling interest, net of tax | — | — | — | (64 | ) | |||||||||||
Net income attributable to Heartland | 7,935 | 6,810 | 9,556 | 12,488 | ||||||||||||
Preferred stock dividends and discount | (204 | ) | (276 | ) | (205 | ) | (408 | ) | ||||||||
Net income available to common stockholders | 7,731 | 6,534 | 9,351 | 12,080 | ||||||||||||
Per share: | ||||||||||||||||
Earnings per share-basic | $ | 0.43 | $ | 0.39 | $ | 0.55 | $ | 0.72 | ||||||||
Earnings per share-diluted | 0.42 | 0.38 | 0.54 | 0.7 | ||||||||||||
Cash dividends declared on common stock | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Book value per common share | 19.44 | 18.58 | 18.51 | 19.54 | ||||||||||||
Weighted average common shares outstanding | 18,096,345 | 16,935,581 | 16,907,405 | 16,851,672 | ||||||||||||
Weighted average diluted common shares outstanding | 18,360,470 | 17,221,154 | 17,203,924 | 17,187,180 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Principles of Presentation) (Details) (Minnesota Bank & Trust) | Mar. 31, 2013 |
Minnesota Bank & Trust | |
Business Acquisition [Line Items] | |
Ownership percentage | 80.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Troubled Debt Restructured Loans) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Threshold period of consecutive payments to remove from nonaccrual status | 6 months |
Threshold period after modification holding current status to be considered in compliance with modified terms | 30 days |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Loans and Leases) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Threshold period past due, nonperforming status of loans and leases | 90 days |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Mortgage Servicing and Transfers of Financial Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Aggregate unpaid principal balance | $3.50 | $3.05 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Premises, Furniture and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 18 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Land Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Furniture and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Goodwill and Intangible Assets) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||
Mortgage servicing rights, valuation allowance | $0 | $0 |
Core Deposits | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 8 years | |
Core Deposits | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 18 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 22 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies (Segment Reporting) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | 2 |
Community Banking | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | 1 |
Mortgage Banking Operations | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | 1 |
Recovered_Sheet1
Summary of Significant Accounting Policies (Earnings per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income attributable to Heartland | $12,263 | $11,973 | $10,774 | $6,890 | $7,935 | $6,810 | $9,556 | $12,488 | $41,900 | $36,789 | $49,792 |
Preferred dividends and discount | -204 | -205 | -204 | -204 | -204 | -276 | -205 | -408 | -817 | -1,093 | -3,400 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $12,059 | $11,768 | $10,570 | $6,686 | $7,731 | $6,534 | $9,351 | $12,080 | $41,083 | $35,696 | $46,392 |
Weighted average common shares outstanding for basic earnings per share | 18,482,059 | 18,468,762 | 18,458,113 | 18,437,253 | 18,096,345 | 16,935,581 | 16,907,405 | 16,851,672 | 18,462,000 | 17,199,000 | 16,518,000 |
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 280,000 | 261,000 | 251,000 | ||||||||
Weighted average common shares for diluted earnings per share | 18,762,272 | 18,752,748 | 18,746,735 | 18,724,936 | 18,360,470 | 17,221,154 | 17,203,924 | 17,187,180 | 18,742,000 | 17,460,000 | 16,769,000 |
Earnings per common share b basic (in dollars per share) | $0.65 | $0.64 | $0.57 | $0.36 | $0.43 | $0.39 | $0.55 | $0.72 | $2.23 | $2.08 | $2.81 |
Earnings per common share b diluted (in dollars per share) | $0.64 | $0.63 | $0.56 | $0.36 | $0.42 | $0.38 | $0.54 | $0.70 | $2.19 | $2.04 | $2.77 |
Number of antidilutive stock options excluded from diluted earnings per share computation (in shares) | 88,000 | 99,000 | 106,000 |
Recovered_Sheet2
Summary of Significant Accounting Policies (Reclassifications) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Loan servicing income reclassified to gain on sale of loans held for sale | $12,800,000 | $11,400,000 |
Losses on sale of fixed assets reclassified from noninterest expenses to loss on sales/valuations of assets, net | $235,000 | $14,000 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Oct. 18, 2013 | Dec. 31, 2013 | Jan. 16, 2015 | Dec. 31, 2012 | Nov. 22, 2013 | |
Business Acquisition [Line Items] | ||||||
Assets | 6,052,362,000 | $5,923,716,000 | $4,990,553,000 | |||
Loans | 3,836,554,000 | 3,461,016,000 | ||||
Deposits | 4,768,022,000 | 4,666,499,000 | ||||
Goodwill | 35,583,000 | 35,583,000 | ||||
Nonaccrual loans | 24,205,000 | 29,313,000 | ||||
Community Bank-Corp of Sheboygan, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Basis of aggregate purchase price as a percentage of adjusted tangible book value | 155.00% | |||||
Morrill | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 810,800,000 | |||||
Loans | 377,700,000 | |||||
Deposits | 665,300,000 | |||||
Total consideration paid | 55,374,000 | |||||
Cash | 16,619,000 | |||||
Purchase price paid in cash, percentage | 30.00% | |||||
Purchase price paid by delivery of shares of common stock | 38,755,000 | |||||
Purchase price paid by delivery of shares of common stock, percentage | 70.00% | |||||
Business acquisition, number of shares issued | 1,402,431 | |||||
Goodwill | 4,956,000 | |||||
Merger related expenses | 466,000 | |||||
Nonaccrual loans | 688,000 | |||||
Freedom | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 67,100,000 | |||||
Loans | 39,300,000 | |||||
Deposits | 54,100,000 | |||||
Goodwill | 0 | |||||
Community Bank & Trust | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 530,400,000 | |||||
Loans | 411,000,000 | |||||
Deposits | 446,700,000 | |||||
Subsequent Event | Community Bank-Corp of Sheboygan, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration paid | $53,100,000 | |||||
Business acquisition, number of shares issued | 1,970,720 |
Acquisitions_Acquisitions_Fair
Acquisitions (Acquisitions Fair Values) (Details) (USD $) | 0 Months Ended | ||
Oct. 18, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value of liabilities assumed | |||
Goodwill resulting from acquisition | $35,583,000 | $35,583,000 | |
Morrill | |||
Fair value of consideration paid | |||
Common stock, number of shares | 1,402,431 | ||
Common Stock (1,402,431 shares) | 38,755,000 | ||
Cash | 16,619,000 | ||
Total consideration paid | 55,374,000 | ||
Fair value of assets acquired | |||
Cash and due from banks | 61,316,000 | ||
Securities: | |||
Securities available for sale | 339,362,000 | ||
Securities held to maturity | 3,086,000 | ||
Other securities | 4,139,000 | ||
Loans held for sale | 97,000 | ||
Loans held to maturity | 377,565,000 | ||
Premises, furniture and equipment, net | 4,867,000 | ||
Other real estate, net | 1,296,000 | ||
Other intangible assets, net | 8,694,000 | ||
Other assets | 5,389,000 | ||
Total assets | 805,811,000 | ||
Fair value of liabilities assumed | |||
Deposits | 665,297,000 | ||
Short term borrowings | 62,450,000 | ||
Other borrowings | 22,809,000 | ||
Other liabilities | 4,837,000 | ||
Total liabilities assumed | 755,393,000 | ||
Fair value of net assets acquired | 50,418,000 | ||
Goodwill resulting from acquisition | $4,956,000 |
Acquisitions_Pro_Forma_Details
Acquisitions (Pro Forma) (Details) (Morrill, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Morrill | ||
Business Acquisition [Line Items] | ||
Net interest income | $181,310 | $168,475 |
Net income | $39,043 | $52,052 |
Basic earnings per share (in usd per share) | $2.27 | $3.15 |
Diluted earnings per share (in usd per share) | $2.24 | $3.10 |
Cash_and_Due_from_Banks_Detail
Cash and Due from Banks (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Reserve balance requirement | $172 | $28,700 |
Securities_Availableforsale_Se
Securities (Available-for-sale Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | $1,396,794 | $1,659,456 |
Gross unrealized gains | 17,385 | 11,423 |
Gross unrealized losses | -12,311 | -36,977 |
Securities available for sale | 1,401,868 | 1,633,902 |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | 1,391,765 | 1,654,460 |
Gross unrealized gains | 17,331 | 11,391 |
Gross unrealized losses | -12,311 | -36,977 |
Securities available for sale | 1,396,785 | 1,628,874 |
U.S. Government Corporations and Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | 24,010 | 220,157 |
Gross unrealized gains | 98 | 147 |
Gross unrealized losses | -15 | -2,001 |
Securities available for sale | 24,093 | 218,303 |
Mortgage-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | 1,219,305 | 1,156,983 |
Gross unrealized gains | 11,929 | 9,538 |
Gross unrealized losses | -11,968 | -22,574 |
Securities available for sale | 1,219,266 | 1,143,947 |
Obligations of States and Political Subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | 148,450 | 277,320 |
Gross unrealized gains | 5,304 | 1,706 |
Gross unrealized losses | -328 | -12,402 |
Securities available for sale | 153,426 | 266,624 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total investment securities | 5,029 | 4,996 |
Gross unrealized gains | 54 | 32 |
Gross unrealized losses | 0 | 0 |
Securities available for sale | $5,083 | $5,028 |
Securities_Heldtomaturity_Secu
Securities (Held-to-maturity Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total investment securities | $284,587 | $237,498 |
Gross unrealized gains | 13,793 | 6,000 |
Gross unrealized losses | -1,612 | -6,061 |
Estimated fair value | 296,768 | 237,437 |
Mortgage-Backed Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total investment securities | 5,734 | 5,973 |
Gross unrealized gains | 217 | 199 |
Gross unrealized losses | -667 | -321 |
Estimated fair value | 5,284 | 5,851 |
Obligations of States and Political Subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total investment securities | 278,853 | 231,525 |
Gross unrealized gains | 13,576 | 5,801 |
Gross unrealized losses | -945 | -5,740 |
Estimated fair value | $291,484 | $231,586 |
Securities_Availableforsale_Se1
Securities (Available-for-sale Securities, Debt Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ||
Due in 1 year or less | $7,335 | |
Due in 1 to 5 years | 28,470 | |
Due in 5 to 10 years | 12,664 | |
Due after 10 years | 123,991 | |
Total debt securities | 172,460 | |
Mortgage-backed securities | 1,219,305 | |
Equity securities | 5,029 | |
Total investment securities | 1,396,794 | 1,659,456 |
Estimated Fair Value | ||
Due in 1 year or less | 7,403 | |
Due in 1 to 5 years | 28,570 | |
Due in 5 to 10 years | 12,959 | |
Due after 10 years | 128,587 | |
Total debt securities | 177,519 | |
Mortgage-backed securities | 1,219,266 | |
Equity securities | 5,083 | |
Estimated fair value | $1,401,868 | $1,633,902 |
Securities_Heldtomaturity_Secu1
Securities (Held-to-maturity Securities, Debt Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ||
Due in 1 year or less | $1,049 | |
Due in 1 to 5 years | 13,388 | |
Due in 5 to 10 years | 57,242 | |
Due after 10 years | 207,174 | |
Total debt securities | 278,853 | |
Mortgage-backed securities | 5,734 | |
Total investment securities | 284,587 | 237,498 |
Estimated Fair Value | ||
Due in 1 year or less | 1,098 | |
Due in 1 to 5 years | 14,038 | |
Due in 5 to 10 years | 59,904 | |
Due after 10 years | 216,444 | |
Total debt securities | 291,484 | |
Mortgage-backed securities | 5,284 | |
Estimated fair value | $296,768 | $237,437 |
Securities_Realized_Gain_Loss_
Securities (Realized Gain (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $791,767 | $546,532 | $576,083 |
Gross security gains | 5,871 | 8,895 | 15,387 |
Gross security losses | $2,203 | $1,774 | $1,389 |
Securities_Available_for_Sale_
Securities (Available for Sale Securities Losses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value | ||
Less than 12 months | $334,291 | $1,034,016 |
12 months or longer | 326,585 | 128,943 |
Total | 660,876 | 1,162,959 |
Unrealized Losses | ||
Less than 12 months | -7,412 | -30,517 |
12 months or longer | -4,899 | -6,460 |
Total | -12,311 | -36,977 |
U.S. Government Corporations and Agencies | ||
Fair Value | ||
Less than 12 months | 6,042 | 196,345 |
12 months or longer | 0 | 0 |
Total | 6,042 | 196,345 |
Unrealized Losses | ||
Less than 12 months | -15 | -2,001 |
12 months or longer | 0 | 0 |
Total | -15 | -2,001 |
Mortgage-Backed Securities | ||
Fair Value | ||
Less than 12 months | 327,363 | 640,684 |
12 months or longer | 306,078 | 118,229 |
Total | 633,441 | 758,913 |
Unrealized Losses | ||
Less than 12 months | -7,391 | -17,064 |
12 months or longer | -4,577 | -5,510 |
Total | -11,968 | -22,574 |
Obligations of States and Political Subdivisions | ||
Fair Value | ||
Less than 12 months | 886 | 196,987 |
12 months or longer | 20,507 | 10,714 |
Total | 21,393 | 207,701 |
Unrealized Losses | ||
Less than 12 months | -6 | -11,452 |
12 months or longer | -322 | -950 |
Total | ($328) | ($12,402) |
Securities_Held_to_Maturity_Se
Securities (Held to Maturity Securities Losses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value | ||
Less than 12 months | $3,172 | $49,345 |
12 months or longer | 32,163 | 22,339 |
Total | 35,335 | 71,684 |
Unrealized Losses | ||
Less than 12 months | -422 | -3,827 |
12 months or longer | -1,190 | -2,234 |
Total | -1,612 | -6,061 |
Mortgage-Backed Securities | ||
Fair Value | ||
Less than 12 months | 0 | 2,170 |
12 months or longer | 2,761 | 834 |
Total | 2,761 | 3,004 |
Unrealized Losses | ||
Less than 12 months | 0 | -319 |
12 months or longer | -667 | -2 |
Total | -667 | -321 |
Obligations of States and Political Subdivisions | ||
Fair Value | ||
Less than 12 months | 3,172 | 47,175 |
12 months or longer | 29,402 | 21,505 |
Total | 32,574 | 68,680 |
Unrealized Losses | ||
Less than 12 months | -422 | -3,508 |
12 months or longer | -523 | -2,232 |
Total | ($945) | ($5,740) |
Securities_Otherthantemporary_
Securities (Other-than-temporary Impairments) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Securitied pledged as collateral | $870,700,000 | |||
Gross realized gains or losses on sale of available for sale securities with OTTI write-downs | 0 | 0 | ||
OTTI write-downs included in earnings/on debt securities: | ||||
OTTI write-downs included in earnings, available for sale debt securities | 184,000 | 184,000 | 184,000 | |
OTTI write-downs included in earnings, held to maturity debt securities | 797,000 | |||
Credit related OTTI | 0 | 0 | 981,000 | |
Intent to sell OTTI | 0 | 0 | 0 | |
Total debt security OTTI write-downs included in earnings/recorded as part of gross realized losses | 981,000 | 0 | 0 | 981,000 |
Mortgage-backed securities recorded directly to AOCI for non-credit related impairment | 0 | 0 | 683,000 | |
Accretion of non-credit related impairment recorded directly to AOCI for non-credit related impairment | -95,000 | -95,000 | -71,000 | |
Total recorded directly to AOCI for non-credit related impairment | -95,000 | -95,000 | 612,000 | |
Total OTTI losses recorded on debt securities | -95,000 | -95,000 | 1,593,000 | |
Mortgage-Backed Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Number of investments with OTTI | 3 | |||
OTTI write-downs included in earnings/on debt securities: | ||||
OTTI write-downs included in earnings, available for sale debt securities | 0 | 0 | 184,000 | |
OTTI write-downs included in earnings, held to maturity debt securities | 0 | 0 | 797,000 | |
Held-to-maturity Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Credit related to OTTI | 797,000 | 797,000 | ||
Non-credit related OTTI | $422,000 | $517,000 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Percentage of Heartland's Mortgage-backed Securities, Issued by US Governmant Sponsored Enterprises | 97.00% |
Securities_Other_Securities_De
Securities (Other Securities) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments, All Other Investments [Abstract] | |||||
Securities transferred from available for sale to held to maturity, at fair value | $26,800,000 | $180,900,000 | $25,162,000 | $179,528,000 | $0 |
FHLB stock | $14,300,000 | $15,600,000 | $14,300,000 | $15,600,000 |
Loans_and_Leases_Loans_and_Lea
Loans and Leases (Loans and Leases Receivable) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | $3,877,863 | $3,500,109 |
Gross loans and leases receivable held to maturity | 3,877,863 | 3,500,109 |
Unearned discount | -90 | -168 |
Deferred loan fees | -1,028 | -2,989 |
Total net loans and leases receivable held to maturity | 3,876,745 | 3,496,952 |
Loans covered under loss share agreement | 1,258 | 5,749 |
Allowance for loan and lease losses | -41,449 | -41,685 |
Loans and leases receivable, net | 3,836,554 | 3,461,016 |
Threshold period past due, nonperforming status of loans and leases | 90 days | |
Commercial | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 1,036,080 | 950,197 |
Commercial Real Estate | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 1,707,060 | 1,529,683 |
Agricultural and Agricultural Real Estate | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 423,827 | 376,735 |
Loans covered under loss share agreement | 0 | 543 |
Residential Real Estate | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 380,341 | 349,349 |
Loans covered under loss share agreement | 1,204 | 2,280 |
Consumer | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 330,555 | 294,145 |
Loans covered under loss share agreement | 0 | 612 |
Commercial and Commercial Real Estate | ||
Loans and Leases [Line Items] | ||
Loans and leases receivable held to maturity | 2,743,140 | 2,479,880 |
Loans covered under loss share agreement | $54 | $2,314 |
Citizens Finance Co | Loans and Finance Receivables | Consumer | ||
Loans and Leases [Line Items] | ||
Concentration risk, percentage | 21.00% | |
Minimum | Residential Real Estate | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 10 years | |
Minimum | Commercial and Commercial Real Estate | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 1 year | |
Maximum | Residential Real Estate | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 30 years | |
Maximum | Commercial and Commercial Real Estate | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 5 years |
Loans_and_Leases_Allowance_for
Loans and Leases (Allowance for Credit Losses on Financing Reveivables) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | $2,697 | $6,717 | ||
Ending Balance Under ASC 450-20 | 38,752 | 34,968 | ||
Total | 41,449 | 41,685 | 38,715 | 36,808 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 61,724 | 71,961 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 3,816,139 | 3,428,148 | ||
Total | 3,877,863 | 3,500,109 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | 754 | 2,817 | ||
Ending Balance Under ASC 450-20 | 11,155 | 10,282 | ||
Total | 11,909 | 13,099 | 11,388 | |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 4,526 | 14,644 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 1,031,554 | 935,553 | ||
Total | 1,036,080 | 950,197 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | 636 | 818 | ||
Ending Balance Under ASC 450-20 | 15,262 | 13,334 | ||
Total | 15,898 | 14,152 | 14,473 | |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 35,771 | 28,299 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 1,671,289 | 1,501,384 | ||
Total | 1,707,060 | 1,529,683 | ||
Agricultural and Agricultural Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | 52 | 756 | ||
Ending Balance Under ASC 450-20 | 3,243 | 2,236 | ||
Total | 3,295 | 2,992 | 2,138 | |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 5,049 | 16,667 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 418,778 | 360,068 | ||
Total | 423,827 | 376,735 | ||
Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | 442 | 605 | ||
Ending Balance Under ASC 450-20 | 3,299 | 3,115 | ||
Total | 3,741 | 3,720 | 3,543 | |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 10,235 | 7,214 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 370,106 | 342,135 | ||
Total | 380,341 | 349,349 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance Under ASC 310-10-35 | 813 | 1,721 | ||
Ending Balance Under ASC 450-20 | 5,793 | 6,001 | ||
Total | 6,606 | 7,722 | 7,173 | |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 6,143 | 5,137 | ||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 324,412 | 289,008 | ||
Total | $330,555 | $294,145 |
Loans_and_Leases_Financing_Rec
Loans and Leases (Financing Receivables, Non accrual Status) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Nonaccrual loans | $24,205 | $29,313 |
Nonaccrual troubled debt restructured loans | 865 | 13,081 |
Total nonaccrual loans | 25,070 | 42,394 |
Accruing loans past due 90 days or more | 0 | 24 |
Performing troubled debt restructured loans | $12,133 | $19,353 |
Loans_and_Leases_Troubled_Debt
Loans and Leases (Troubled Debt Restructured Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||
Troubled debt restructured loans | $13,000,000 | $32,500,000 |
Nonaccrual troubled debt restructured loans | 865,000 | 13,081,000 |
Performing troubled debt restructured loans | $12,133,000 | $19,353,000 |
Loans_and_Leases_Troubled_Debt1
Loans and Leases (Troubled Debt Restructurings on Financing Receivables) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
loans | loans | loans | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 9 | 22 | |
Pre-Modification Recorded Investment | $4,471 | $25,008 | |
Post-Modification Recorded Investment | 4,471 | 25,008 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 0 | 4 | |
Pre-Modification Recorded Investment | 0 | 17,934 | |
Post-Modification Recorded Investment | 0 | 17,934 | |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 4 | 2 | 5 |
Pre-Modification Recorded Investment | 1,600 | 357 | 1,797 |
Post-Modification Recorded Investment | 357 | 1,797 | |
Commercial and Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 2 | 9 | |
Pre-Modification Recorded Investment | 357 | 19,731 | |
Post-Modification Recorded Investment | 357 | 19,731 | |
Agricultural and Agricultural Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 2 | 8 | |
Pre-Modification Recorded Investment | 3,357 | 4,349 | |
Post-Modification Recorded Investment | 3,357 | 4,349 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 5 | 4 | |
Pre-Modification Recorded Investment | 757 | 762 | |
Post-Modification Recorded Investment | 757 | 762 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | 0 | 1 | |
Pre-Modification Recorded Investment | 0 | 166 | |
Post-Modification Recorded Investment | $0 | $166 |
Loans_and_Leases_Troubled_Debt2
Loans and Leases (Troubled Debt Restructured Loans with Payment Default) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
loans | loans | ||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 1 | 6 | |
Recorded Investment With Payment Defaults | $55 | $12,243 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 0 | 3 | |
Recorded Investment With Payment Defaults | 61 | 0 | 11,598 |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 1 | 1 | |
Recorded Investment With Payment Defaults | 480 | 55 | 480 |
Commercial and Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 1 | 4 | |
Recorded Investment With Payment Defaults | 55 | 12,078 | |
Agricultural and Agricultural Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 0 | 0 | |
Recorded Investment With Payment Defaults | 0 | 0 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 0 | 2 | |
Recorded Investment With Payment Defaults | 0 | 165 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans With Payment Defaults | 0 | 0 | |
Recorded Investment With Payment Defaults | $0 | $0 |
Loans_and_Leases_Loans_and_Lea1
Loans and Leases (Loans and Leases Not Covered by Share Agreements (Credit Quality Indicator)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
loans | loans | |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans classified as doubtful | 0 | |
Number of loans classified as loss | 0 | |
Loans and leases receivable | $3,877,863,000 | $3,500,109,000 |
Number of loans classified as doubtful on nonaccrual status | 1 | |
Loans delinquent 30-89 days as a percentage of total loans | 0.21% | 0.30% |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 3,592,750,000 | 3,215,775,000 |
Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 285,113,000 | 284,334,000 |
Nonimpaired Purchased Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Doubtful loan, specific reserve | 2,200,000 | |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 1,036,080,000 | 950,197,000 |
Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 939,717,000 | 871,825,000 |
Commercial | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 96,363,000 | 78,372,000 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 1,707,060,000 | 1,529,683,000 |
Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 1,567,711,000 | 1,390,820,000 |
Commercial Real Estate | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 139,349,000 | 138,863,000 |
Commercial and Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 2,743,140,000 | 2,479,880,000 |
Commercial and Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 2,507,428,000 | 2,262,645,000 |
Commercial and Commercial Real Estate | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 235,712,000 | 217,235,000 |
Agricultural and Agricultural Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 423,827,000 | 376,735,000 |
Agricultural and Agricultural Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 402,883,000 | 335,821,000 |
Agricultural and Agricultural Real Estate | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 20,944,000 | 40,914,000 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 380,341,000 | 349,349,000 |
Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 361,325,000 | 333,161,000 |
Residential Real Estate | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 19,016,000 | 16,188,000 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 330,555,000 | 294,145,000 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | 321,114,000 | 284,148,000 |
Consumer | Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable | $9,441,000 | $9,997,000 |
Loans_and_Leases_Loans_and_Lea2
Loans and Leases (Loans and Leases Not Covered by Share Agreements (Percentage)) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of nonaccrual loans | 9.00% | 15.00% |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans | 66.00% | 59.00% |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans | 34.00% | 38.00% |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans | 3.00% |
Loans_and_Leases_Loans_and_Lea3
Loans and Leases (Loans and Leases Not Covered by Share Agreements (Past Due Financing Receivables)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $6,306 | $8,380 |
60-89 Days Past Due | 2,020 | 2,085 |
90 Days or More Past Due | 0 | 24 |
Total Past Due | 8,326 | 10,489 |
Current | 3,844,467 | 3,447,226 |
Nonaccrual | 25,070 | 42,394 |
Total | 3,877,863 | 3,500,109 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 980 | 697 |
60-89 Days Past Due | 48 | 741 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 1,028 | 1,438 |
Current | 1,032,707 | 935,508 |
Nonaccrual | 2,345 | 13,251 |
Total | 1,036,080 | 950,197 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,788 | 3,042 |
60-89 Days Past Due | 111 | 199 |
90 Days or More Past Due | 0 | 24 |
Total Past Due | 1,899 | 3,265 |
Current | 1,693,554 | 1,511,618 |
Nonaccrual | 11,607 | 14,800 |
Total | 1,707,060 | 1,529,683 |
Commercial and Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 2,768 | 3,739 |
60-89 Days Past Due | 159 | 940 |
90 Days or More Past Due | 0 | 24 |
Total Past Due | 2,927 | 4,703 |
Current | 2,726,261 | 2,447,126 |
Nonaccrual | 13,952 | 28,051 |
Total | 2,743,140 | 2,479,880 |
Agricultural and Agricultural Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 119 | 818 |
60-89 Days Past Due | 50 | 0 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 169 | 818 |
Current | 422,219 | 369,907 |
Nonaccrual | 1,439 | 6,010 |
Total | 423,827 | 376,735 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,037 | 1,199 |
60-89 Days Past Due | 445 | 56 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 1,482 | 1,255 |
Current | 371,982 | 342,735 |
Nonaccrual | 6,877 | 5,359 |
Total | 380,341 | 349,349 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 2,382 | 2,624 |
60-89 Days Past Due | 1,366 | 1,089 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 3,748 | 3,713 |
Current | 324,005 | 287,458 |
Nonaccrual | 2,802 | 2,974 |
Total | $330,555 | $294,145 |
Loans_and_Leases_Impaired_Loan
Loans and Leases (Impaired Loans Not Covered by Loss Share Agreements) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | $16,664 | $36,828 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 53,132 | 42,400 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 69,796 | 79,228 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 16,462 | 36,573 |
Impaired Loans Without a Related Allowance, Loan Balance | 45,262 | 35,388 |
Totals Impaired Loans Held to Maturity, Loan Balance | 61,724 | 71,961 |
Related Allowance Recorded | 2,697 | 6,717 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 22,942 | 27,235 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 39,466 | 50,768 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 62,408 | 78,003 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 457 | 787 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 1,523 | 933 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 1,980 | 1,720 |
Commercial | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 780 | 7,901 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 4,913 | 7,724 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 5,693 | 15,625 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 780 | 7,901 |
Impaired Loans Without a Related Allowance, Loan Balance | 3,746 | 6,743 |
Totals Impaired Loans Held to Maturity, Loan Balance | 4,526 | 14,644 |
Related Allowance Recorded | 754 | 2,817 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 5,594 | 5,343 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 3,499 | 9,394 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 9,093 | 14,737 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 19 | 38 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 101 | 89 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 120 | 127 |
Commercial Real Estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 7,356 | 9,164 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 32,708 | 24,830 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 40,064 | 33,994 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 7,322 | 8,909 |
Impaired Loans Without a Related Allowance, Loan Balance | 28,449 | 19,390 |
Totals Impaired Loans Held to Maturity, Loan Balance | 35,771 | 28,299 |
Related Allowance Recorded | 636 | 818 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 5,931 | 7,686 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 24,522 | 25,676 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 30,453 | 33,362 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 303 | 282 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 1,172 | 538 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 1,475 | 820 |
Commercial and Commercial Real Estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 8,136 | 17,065 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 37,621 | 32,554 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 45,757 | 49,619 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 8,102 | 16,810 |
Impaired Loans Without a Related Allowance, Loan Balance | 32,195 | 26,133 |
Totals Impaired Loans Held to Maturity, Loan Balance | 40,297 | 42,943 |
Related Allowance Recorded | 1,390 | 3,635 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 11,525 | 13,029 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 28,021 | 35,070 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 39,546 | 48,099 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 322 | 320 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 1,273 | 627 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 1,595 | 947 |
Agricultural and Agricultural Real Estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 3,317 | 13,818 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 3,961 | 2,849 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 7,278 | 16,667 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 3,317 | 13,818 |
Impaired Loans Without a Related Allowance, Loan Balance | 1,732 | 2,849 |
Totals Impaired Loans Held to Maturity, Loan Balance | 5,049 | 16,667 |
Related Allowance Recorded | 52 | 756 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 3,966 | 7,537 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 3,308 | 9,985 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 7,274 | 17,522 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 104 | 354 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 13 | 189 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 117 | 543 |
Residential Real Estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 2,412 | 2,460 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 8,200 | 5,345 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 10,612 | 7,805 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 2,244 | 2,460 |
Impaired Loans Without a Related Allowance, Loan Balance | 7,991 | 4,754 |
Totals Impaired Loans Held to Maturity, Loan Balance | 10,235 | 7,214 |
Related Allowance Recorded | 442 | 605 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 3,398 | 3,179 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 6,267 | 4,198 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 9,665 | 7,377 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 12 | 13 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 110 | 80 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | 122 | 93 |
Consumer | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Loans with a Related Allowance, Unpaid Contractual Balance | 2,799 | 3,485 |
Impaired Loans Without a Related Allowance, Unpaid Contractual Balance | 3,350 | 1,652 |
Impaired Loans Held to Maturity, Unpaid Contractual Balance | 6,149 | 5,137 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Loan Balance | 2,799 | 3,485 |
Impaired Loans Without a Related Allowance, Loan Balance | 3,344 | 1,652 |
Totals Impaired Loans Held to Maturity, Loan Balance | 6,143 | 5,137 |
Related Allowance Recorded | 813 | 1,721 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Avg. Loan Balance | 4,053 | 3,490 |
Impaired Loans Without a Related Allowance, Year-to-Date Avg. Loan Balance | 1,870 | 1,515 |
Totals Impaired Loans Held to Maturity, Year-to-Date Avg. Loan Balance | 5,923 | 5,005 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired Loans With a Related Allowance, Year-to-Date Interest Income Recognized | 19 | 100 |
Impaired Loans Without a Related Allowance, Year-to-Date Interest Income Recognized | 127 | 37 |
Totals Impaired Loans Held to Maturity, Year-to-Date Interest Income Recognized | $146 | $137 |
Loans_and_Leases_Troubled_Debt3
Loans and Leases (Troubled Debt in Text) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 02, 2009 | Dec. 31, 2013 | |
agreements | |||
Galena State Bank & Trust Co. | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loss share agreements | 2 | ||
Shared loss arrangement, maximum covered assets | $10,000,000 | ||
Galena State Bank & Trust Co. | Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Loss sharing agreement, term | 10 years | ||
Galena State Bank & Trust Co. | Losses | Non-residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Loss sharing agreement, term | 5 years | ||
Galena State Bank & Trust Co. | Recoveries | Non-residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Loss sharing agreement, term | 8 years | ||
Elizabeth State Bank | |||
Financing Receivable, Modifications [Line Items] | |||
Contractually required payments of loans acquired | 42,700,000 | ||
Estimated fair value of loans acquired | 37,800,000 | ||
Elizabeth State Bank | Impaired Purchased Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Contractually required payments of loans acquired | 13,800,000 | ||
Estimated fair value of loans acquired | 9,000,000 | ||
Allowance for loan and lease losses related to ASC 310-30 loans | 0 | 0 | |
Elizabeth State Bank | Nonimpaired Purchased Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Contractually required payments of loans acquired | 28,900,000 | ||
Estimated fair value of loans acquired | $28,700,000 |
Loans_and_Leases_Carrying_Amou
Loans and Leases (Carrying Amount Loans Covered by Loss Share Agreements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ||
Impaired Purchased Loans | $305 | $1,087 |
Non Impaired Purchased Loans | 953 | 4,662 |
Total Covered Loans | 1,258 | 5,749 |
Commercial and Commercial Real Estate | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ||
Impaired Purchased Loans | 0 | 549 |
Non Impaired Purchased Loans | 54 | 1,765 |
Total Covered Loans | 54 | 2,314 |
Agricultural and Agricultural Real Estate | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ||
Impaired Purchased Loans | 0 | 0 |
Non Impaired Purchased Loans | 0 | 543 |
Total Covered Loans | 0 | 543 |
Residential Real Estate | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ||
Impaired Purchased Loans | 305 | 0 |
Non Impaired Purchased Loans | 899 | 2,280 |
Total Covered Loans | 1,204 | 2,280 |
Consumer Loans | ||
Loans covered by loss share agreement (carrying amount) [Line Items] | ||
Impaired Purchased Loans | 0 | 538 |
Non Impaired Purchased Loans | 0 | 74 |
Total Covered Loans | $0 | $612 |
Loans_and_Leases_Loans_and_Lea4
Loans and Leases (Loans and Leases Receivable, Related Parties Roll Forward) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at beginning of year | $113,604 | $97,611 |
Advances | 84,348 | 85,058 |
Repayments | -62,353 | -69,065 |
Balance at end of year | $135,599 | $113,604 |
Allowance_for_Loan_and_Lease_L2
Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | $41,685 | $38,715 | $41,685 | $38,715 | $36,808 | ||||||
Provision for loan and lease losses | 2,866 | 2,553 | 2,751 | 6,331 | 2,049 | 5,149 | 1,862 | 637 | 14,501 | 9,697 | 8,202 |
Recoveries on loans and leases previously charged-off | 3,990 | 4,820 | 8,209 | ||||||||
Loans and leases charged-off | -18,727 | -11,547 | -14,504 | ||||||||
Balance at end of year | 41,449 | 41,685 | 41,449 | 41,685 | 38,715 | ||||||
Commercial | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | 13,099 | 11,388 | 13,099 | 11,388 | |||||||
Provision for loan and lease losses | 6,806 | 3,152 | |||||||||
Recoveries on loans and leases previously charged-off | 753 | 1,019 | |||||||||
Loans and leases charged-off | -8,749 | -2,460 | |||||||||
Balance at end of year | 11,909 | 13,099 | 11,909 | 13,099 | |||||||
Commercial Real Estate | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | 14,152 | 14,473 | 14,152 | 14,473 | |||||||
Provision for loan and lease losses | 2,345 | 552 | |||||||||
Recoveries on loans and leases previously charged-off | 2,290 | 2,378 | |||||||||
Loans and leases charged-off | -2,889 | -3,251 | |||||||||
Balance at end of year | 15,898 | 14,152 | 15,898 | 14,152 | |||||||
Agricultural | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | 2,992 | 2,138 | 2,992 | 2,138 | |||||||
Provision for loan and lease losses | 2,543 | 767 | |||||||||
Recoveries on loans and leases previously charged-off | 11 | 110 | |||||||||
Loans and leases charged-off | -2,251 | -23 | |||||||||
Balance at end of year | 3,295 | 2,992 | 3,295 | 2,992 | |||||||
Residential Real Estate | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | 3,720 | 3,543 | 3,720 | 3,543 | |||||||
Provision for loan and lease losses | 215 | 1,055 | |||||||||
Recoveries on loans and leases previously charged-off | 148 | 158 | |||||||||
Loans and leases charged-off | -342 | -1,036 | |||||||||
Balance at end of year | 3,741 | 3,720 | 3,741 | 3,720 | |||||||
Consumer | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Balance at beginning of year | 7,722 | 7,173 | 7,722 | 7,173 | |||||||
Provision for loan and lease losses | 2,592 | 4,171 | |||||||||
Recoveries on loans and leases previously charged-off | 788 | 1,155 | |||||||||
Loans and leases charged-off | -4,496 | -4,777 | |||||||||
Balance at end of year | $6,606 | $7,722 | $6,606 | $7,722 |
Premises_Furniture_and_Equipme2
Premises, Furniture and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Premises, furniture and equipment, gross | $207,257,000 | $206,124,000 | |
Less accumulated depreciation | -76,544,000 | -70,410,000 | |
Premises, furniture and equipment, net | 130,713,000 | 135,714,000 | |
Depreciation expense | 8,400,000 | 7,700,000 | 6,400,000 |
Land and Land Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture and equipment, gross | 36,186,000 | 36,679,000 | |
Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture and equipment, gross | 114,824,000 | 115,052,000 | |
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture and equipment, gross | $56,247,000 | $54,393,000 |
Goodwill_Core_Deposit_Intangib2
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Goodwill) (Details) (USD $) | 0 Months Ended | |||
Oct. 18, 2013 | Nov. 22, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | ||||
Goodwill resulting from acquisition | $35,583,000 | $35,583,000 | ||
Morrill | ||||
Goodwill [Line Items] | ||||
Goodwill resulting from acquisition | 4,956,000 | |||
Morrill | Core Deposits | ||||
Goodwill [Line Items] | ||||
Recognized intangibles | 8,500,000 | |||
Intangibles amortization period | 8 years | |||
Freedom | ||||
Goodwill [Line Items] | ||||
Goodwill resulting from acquisition | 0 | |||
Freedom | Core Deposits | ||||
Goodwill [Line Items] | ||||
Recognized intangibles | $890,000 | |||
Intangibles amortization period | 8 years |
Goodwill_Core_Deposit_Intangib3
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Carrying Amount of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $60,071 | $54,406 |
Accumulated Amortization | 26,139 | 21,447 |
Net Carrying Amount | 33,932 | 32,959 |
Core Deposit Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,069 | 21,069 |
Accumulated Amortization | 12,525 | 10,345 |
Net Carrying Amount | 8,544 | 10,724 |
Mortgage Servicing Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37,825 | 32,160 |
Accumulated Amortization | 12,841 | 10,372 |
Net Carrying Amount | 24,984 | 21,788 |
Customer Relationship Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,177 | 1,177 |
Accumulated Amortization | 773 | 730 |
Net Carrying Amount | $404 | $447 |
Goodwill_Core_Deposit_Intangib4
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Estimated Future Amortization Expense for Amortizable Intangible Assets) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $8,068 |
2016 | 6,970 |
2017 | 5,895 |
2018 | 4,840 |
2019 | 3,772 |
Thereafter | 4,387 |
Core Deposit Intangibles | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | 1,780 |
2016 | 1,575 |
2017 | 1,393 |
2018 | 1,232 |
2019 | 1,056 |
Thereafter | 1,508 |
Mortgage Servicing Rights | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | 6,246 |
2016 | 5,354 |
2017 | 4,462 |
2018 | 3,569 |
2019 | 2,678 |
Thereafter | 2,675 |
Customer Relationship Intangible | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | 42 |
2016 | 41 |
2017 | 40 |
2018 | 39 |
2019 | 38 |
Thereafter | $204 |
Goodwill_Core_Deposit_Intangib5
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Mortgage Loans Servicing) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation servicing rights in tranches [Line Items] | |||
Mortgage loans serviced for others | $3,500,000,000 | $3,050,000,000 | |
Custodial escrow balances maintained | 15,200,000 | 12,800,000 | |
Fair value of mortgage servicing rights | 34,219,000 | 31,965,000 | |
Mortgage servicing rights, valuation allowance | 0 | 0 | |
Mortgage Servicing Rights 15-year Tranche | |||
Valuation servicing rights in tranches [Line Items] | |||
Servicing rights, term | 15 years | ||
Mortgage Servicing Rights 30-year Tranche | |||
Valuation servicing rights in tranches [Line Items] | |||
Servicing rights, term | 30 years | ||
Mortgage Servicing Rights | |||
Valuation servicing rights in tranches [Line Items] | |||
Prepayment rate | 11.40% | 9.65% | |
Discount rate | 9.20% | 10.15% | |
Fees collected for servicing of mortgage loans | $8,800,000 | $6,900,000 | $4,400,000 |
Minimum | Mortgage Servicing Rights | |||
Valuation servicing rights in tranches [Line Items] | |||
Capitalization rate | 0.75% | 0.79% | |
Maximum | Mortgage Servicing Rights | |||
Valuation servicing rights in tranches [Line Items] | |||
Capitalization rate | 1.39% | 1.39% |
Goodwill_Core_Deposit_Intangib6
Goodwill, Core Deposit Intangibles and Other Intangible Assets (Changes in Capitalized Mortgage Servicing Rights) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-lived Intangible Assets [Roll Forward] | |||
Balance at beginning of period | $21,788 | $15,653 | |
Originations | 8,618 | 12,769 | |
Amortization | -5,422 | -7,314 | |
Purchased MSR | 0 | 184 | |
Valuation adjustment on mortgage servicing rights | 0 | 496 | -477 |
Balance at end of period | 24,984 | 21,788 | 15,653 |
Fair value of mortgage servicing rights | $34,219 | $31,965 | |
Mortgage servicing rights, net to servicing portfolio | 0.71% | 0.72% |
Deposits_Details
Deposits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Time Deposits, Fiscal Year Maturity [Abstract] | |||
2015 | $425,049,000 | ||
2016 | 178,921,000 | ||
2017 | 84,628,000 | ||
2018 | 32,732,000 | ||
2019 | 48,747,000 | ||
Thereafter | 15,259,000 | ||
Total | 785,336,000 | 892,676,000 | |
Time deposits, $100,000 or more | 327,100,000 | 354,200,000 | |
Interest Expense, Deposits [Abstract] | |||
Savings and money market accounts | 8,042,000 | 6,674,000 | 6,736,000 |
Time certificates of deposit in denominations of $100,000 or more | 3,474,000 | 4,403,000 | 4,776,000 |
Other time deposits | 6,638,000 | 8,891,000 | 10,718,000 |
Interest expense on deposits | $18,154,000 | $19,968,000 | $22,230,000 |
Shortterm_Borrowings_Shortterm
Short-term Borrowings (Short-term Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $330,264 | $408,756 |
Securities Sold Under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 240,214 | 234,659 |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 14,050 | 69,097 |
FHLB Advance | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $76,000 | $105,000 |
Shortterm_Borrowings_Balances_
Short-term Borrowings (Balances and Rates) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Maximum month-end balance | $420,494 | $408,756 | $298,662 |
Average month-end balance | $307,470 | $274,352 | $248,048 |
Weighted average interest rate for the year | 0.28% | 0.31% | 0.32% |
Weighted average interest rate at year-end | 0.19% | 0.19% | 0.31% |
Shortterm_Borrowings_Narrative
Short-term Borrowings (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
credit_line | credit_line | |
Short-term Debt [Line Items] | ||
Number of credit lines | 1 | 1 |
Borrowing capacity | $20,000,000 | $20,000,000 |
Line of credit outstanding | 0 | 0 |
Collateralized short-term borrowing under Discount Window Program | $73,000,000 | $100,800,000 |
Retail Repurchase Agreements | ||
Short-term Debt [Line Items] | ||
Debt term | 12 months | 12 months |
Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Restrictive covenants, return on average assets, minimum | 0.50% | |
Restrictive covenants, nonperforming assets to tier 1 capital and allowance for loan and lease losses | 30.00% | |
Restrictive covenants, allowance for loan and lease losses to gross loans and leases, minimum | 1.00% | |
Term Loan | ||
Short-term Debt [Line Items] | ||
Restrictive covenants, return on average assets, minimum | 0.50% | |
Restrictive covenants, nonperforming assets to tier 1 capital and allowance for loan and lease losses | 30.00% | |
Restrictive covenants, allowance for loan and lease losses to gross loans and leases, minimum | 1.00% |
Other_Borrowings_Schedule_of_O
Other Borrowings (Schedule of Other Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long-term debt | $396,255,000 | $350,109,000 |
FHLB stock, required collateral | 12,000,000 | 14,200,000 |
Additional collateral, aggregate fair value | 1,480,000,000 | 1,320,000,000 |
FHLB borrowing capacity | 426,600,000 | |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Long-term debt | 109,830,000 | 113,453,000 |
Weighted average interest rate | 2.35% | 3.06% |
Wholesale Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 45,000,000 | 60,000,000 |
Weighted average interest rate | 3.62% | 3.38% |
Trust Preferred Securities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 125,065,000 | 124,860,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29,500,000 | 37,500,000 |
Notes Payable to Unaffiliated Bank | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,369,000 | 11,719,000 |
Contracts Payable for Purchase of Real Estate and Other Assets | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,541,000 | 2,577,000 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $73,950,000 | $0 |
Other_Borrowings_Repurchase_Ag
Other Borrowings (Repurchase Agreements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Long-term debt | $396,255,000 | $350,109,000 | |
Wholesale Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Long-term debt | 45,000,000 | 60,000,000 | |
Wholesale Repurchase Agreements | Citigroup Global Markets | Repurchase agreement, maturity date April 17, 2015 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 15,000,000 | ||
Interest rate | 3.32% | [1] | |
Wholesale Repurchase Agreements | Citigroup Global Markets | Repurchase agreement, maturity date April 17, 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 20,000,000 | ||
Interest rate | 3.61% | [1],[2] | |
Interest rate cap | 3.61% | ||
Wholesale Repurchase Agreements | Barclays Capital | |||
Debt Instrument [Line Items] | |||
Long-term debt | $10,000,000 | ||
Interest rate | 4.07% | [1] | |
[1] | Interest rates are fixed with the exception of the interest rate on the $20.0 million transaction with Citigroup Global Markets. | ||
[2] | Interest rate resets quarterly on the 17th of January, April, July and October of each year until maturity. Embedded within the contract is a cap interest rate of |
Other_Borrowings_Trust_Preferr
Other Borrowings (Trust Preferred Offerings) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
subsidiary | |||
Debt Instrument [Line Items] | |||
Number of wholly-owned trust subsidiaries that issue preferred securities | 7 | ||
Long-term debt | $396,255,000 | $350,109,000 | |
Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Deferred issuance costs | 197,000 | ||
Long-term debt | 125,065,000 | 124,860,000 | |
Trust Preferred Securities | Tier 1 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 125,100,000 | 124,900,000 | |
Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 6.00% | ||
Heartland Financial Statutory Trust III | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 20,619,000 | ||
Stated interest rate, percent | 8.25% | ||
Interest rate | 8.25% | [1] | |
Heartland Financial Statutory Trust IV | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 25,774,000 | ||
Basis spread on variable rate | 2.75% | ||
Description of variable rate basis | LIBOR | ||
Interest rate | 2.99% | [1],[2] | |
Heartland Financial Statutory Trust IV | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 5.00% | ||
Heartland Financial Statutory Trust V | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 20,619,000 | ||
Basis spread on variable rate | 1.33% | ||
Description of variable rate basis | LIBOR | ||
Interest rate | 1.56% | [1],[3] | |
Heartland Financial Statutory Trust V | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 4.69% | ||
Heartland Financial Statutory Trust VI | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 20,619,000 | ||
Stated interest rate, percent | 6.75% | ||
Interest rate | 6.75% | [1],[4] | |
Heartland Financial Statutory Trust VI | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 1.48% | ||
Heartland Financial Statutory Trust VII | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 20,619,000 | ||
Basis spread on variable rate | 1.48% | ||
Description of variable rate basis | LIBOR | ||
Interest rate | 1.72% | [1],[5] | |
Heartland Financial Statutory Trust VII | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 4.70% | ||
Morrill Statutory Trust I | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 8,618,000 | ||
Basis spread on variable rate | 3.25% | ||
Description of variable rate basis | LIBOR | ||
Interest rate | 3.50% | [1],[6] | |
Morrill Statutory Trust I | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 4.92% | ||
Morrill Statutory Trust II | Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Long-term debt | $8,197,000 | ||
Basis spread on variable rate | 2.85% | ||
Description of variable rate basis | LIBOR | ||
Interest rate | 3.09% | [1],[7] | |
Morrill Statutory Trust II | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on derivative | 4.51% | ||
Morrill | |||
Debt Instrument [Line Items] | |||
Number of wholly-owned trust subsidiaries that issue preferred securities | 2 | ||
[1] | Effective weighted average interest rate as of December 31, 2014, was 6.00% due to interest rate swap transactionson the variable rate securities as discussed in Note 12 to Heartland's consolidated financial statements. | ||
[2] | Effective interest rate as of December 31, 2014, was 5.00% due to an interest rate swap transaction as discussed inNote 12 to Heartland's consolidated financial statements. | ||
[3] | Effective interest rate as of December 31, 2014, was 4.69% due to an interest rate swap transaction as discussed inNote 12 to Heartland's consolidated financial statements. | ||
[4] | Interest rate is fixed at 6.75% through June 15, 2017 then resets to 1.48% over LIBOR for the remainder of the term. | ||
[5] | Effective interest rate as of December 31, 2014, was 4.70% due to an interest rate swap transaction as discussed inNote 12 to Heartland's consolidated financial statements. | ||
[6] | Effective interest rate as of December 31, 2014, was 4.92% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. | ||
[7] | Effective interest rate as of December 31, 2014, was 4.51% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements. |
Other_Borrowings_Narrative_Det
Other Borrowings (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Apr. 20, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2015 | Dec. 17, 2014 | |
Debt Instrument [Line Items] | |||||
Senior notes | $29,500,000 | $37,500,000 | |||
Long-term debt | 396,255,000 | 350,109,000 | |||
Tier 1 | |||||
Debt Instrument [Line Items] | |||||
Subordinated notes qualified as Tier 2 capital | 74,000,000 | ||||
Bank One | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate on derivative | 5.14% | ||||
Derivative maturity | 5 years | ||||
Trust Preferred Securities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 125,065,000 | 124,860,000 | |||
Trust Preferred Securities | Tier 1 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 125,100,000 | 124,900,000 | |||
Trust Preferred Securities | Subsequent Event | Tier 1 | |||||
Debt Instrument [Line Items] | |||||
Early redemption fees | 0 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate, percent | 5.00% | ||||
Prepayment of senior notes | 8,000,000 | ||||
Long-term debt | 29,500,000 | 37,500,000 | |||
Senior Notes | December 1, 2015 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity amount | 14,500,000 | ||||
Senior Notes | February 1, 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity amount | 5,000,000 | ||||
Senior Notes | February 1, 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity amount | 5,000,000 | ||||
Senior Notes | February 1, 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity amount | 5,000,000 | ||||
Loans Payable | Bank One | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 15,000,000 | ||||
Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate, percent | 5.75% | ||||
Long-term debt | 73,950,000 | 0 | |||
Debt issued | 75,000,000 | ||||
Debt discount | 1,100,000 | ||||
Subordinated Notes | Other Assets | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance expense | $353,000 |
Other_Borrowings_Schedule_of_M
Other Borrowings (Schedule of Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2015 | $152,782 | |
2016 | 19,548 | |
2017 | 10,197 | |
2018 | 5,147 | |
2019 | 5,694 | |
Thereafter | 202,887 | |
Total | $396,255 | $350,109 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Cash Collateral on Derivative Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $5,300 | $5,400 |
Counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $0 | $540 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Estimated Cash Payments and Reclassification to Interest Expense) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Change in net unrealized losses on cash flow hedges | $2.20 |
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense within the next twelve months | $2.30 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Executed Interest Rate Swap) (Details) (USD $) | Apr. 20, 2011 | Dec. 31, 2014 | Dec. 31, 2009 | Mar. 31, 2014 |
In Millions, unless otherwise specified | transaction | transaction | transaction | |
Interest Rate Swap 1 | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $15 | |||
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 85 | |||
Number of interest rate swap transactions | 5 | 3 | ||
Interest Rate Swap | Cash Flow Hedging | New Forward Contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $16.80 | |||
Number of interest rate swap transactions | 2 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Balance Sheet Category and Fair Values of Derivative Insturments (Cash Flow Hedges)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap 1 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $10,369 | $11,719 |
Receive Rate | 2.92% | 2.92% |
Weighted Average Pay Rate | 5.14% | 5.14% |
Interest Rate Swap 7 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,000 | |
Receive Rate | 0.24% | |
Weighted Average Pay Rate | 2.26% | |
Interest Rate Swap 3 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,000 | 20,000 |
Receive Rate | 0.23% | 0.24% |
Weighted Average Pay Rate | 3.22% | 3.22% |
Interest Rate Swap 4 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,000 | 20,000 |
Receive Rate | 0.23% | 0.24% |
Weighted Average Pay Rate | 3.36% | 3.36% |
Interest Rate Swap 5 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,000 | |
Receive Rate | 0.26% | |
Weighted Average Pay Rate | 1.67% | |
Interest Rate Swap 6 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,000 | |
Receive Rate | 0.24% | |
Weighted Average Pay Rate | 1.66% | |
Interest Rate Swap 2 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,000 | |
Receive Rate | 0.24% | |
Weighted Average Pay Rate | 2.58% | |
Other Liabilities | Interest Rate Swap 1 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -248 | -457 |
Other Liabilities | Interest Rate Swap 7 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -534 | |
Other Liabilities | Interest Rate Swap 3 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -1,046 | -1,507 |
Other Liabilities | Interest Rate Swap 4 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -1,748 | -1,587 |
Other Liabilities | Interest Rate Swap 5 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -35 | |
Other Liabilities | Interest Rate Swap 6 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | -35 | |
Other Liabilities | Interest Rate Swap 2 | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | ($146) |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Gains (Losses) Recognized on Derivatives (Cash Flow Hedges)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Rate Swap 1 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | $209 | $254 |
Interest Rate Swap 7 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | -534 | |
Interest Rate Swap 3 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 461 | 679 |
Interest Rate Swap 4 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | -161 | 1,433 |
Interest Rate Swap 5 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | -35 | |
Interest Rate Swap 6 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | -35 | |
Interest Rate Swap 8 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 146 | |
Interest Rate Swap 2 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 562 | |
Interest Expense | Interest Rate Swap 1 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -252 | -276 |
Interest Expense | Interest Rate Swap 7 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -386 | |
Interest Expense | Interest Rate Swap 3 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -604 | -594 |
Interest Expense | Interest Rate Swap 4 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -632 | -616 |
Interest Expense | Interest Rate Swap 5 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -110 | |
Interest Expense | Interest Rate Swap 6 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -109 | |
Interest Expense | Interest Rate Swap 8 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -146 | |
Interest Expense | Interest Rate Swap 2 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | -583 | |
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 7 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 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 |
Other Income | Interest Rate Swap 5 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | |
Other Income | Interest Rate Swap 6 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | |
Other Income | Interest Rate Swap 8 | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 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 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $74,863 | $63,370 |
Interest Rate Lock Commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | 2,496 | 1,809 |
Forward Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 88,484 | 117,637 |
Notional Amount | 218,337 | 53,277 |
Forward Commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | 275 | 1,206 |
Forward Commitments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | ($1,619) | ($133) |
Derivative_Financial_Instrumen8
Derivative Financial Instruments (Derivative Instruments Gains and Losses Recognized (Not Designated as Hedging Instruments)) (Details) (Gain on Sale of Loans Held for Sale, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Rate Lock Commitments | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Year-to-Date Gain (Loss) Recognized | $2,422 | ($10,518) |
Forward Commitments | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Year-to-Date Gain (Loss) Recognized | ($2,417) | $1,832 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||||||||||
Federal | $5,833 | $5,025 | $11,513 | ||||||||
State | 3,633 | 2,549 | 5,366 | ||||||||
Total current | 9,466 | 7,574 | 16,879 | ||||||||
Deferred: | |||||||||||
Federal | 2,703 | 2,447 | 404 | ||||||||
State | 927 | 314 | 101 | ||||||||
Total deferred | 3,630 | 2,761 | 505 | ||||||||
Income tax expense | $4,327 | $2,916 | $4,150 | $1,703 | $46 | $1,492 | $3,598 | $5,199 | $13,096 | $10,335 | $17,384 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Tax effect of net unrealized loss on securities available for sale reflected in stockholdersb equity | $0 | $9,766 |
Tax effect of net unrealized loss on derivatives reflected in stockholdersb equity | 1,162 | 1,270 |
Securities | 35 | 1,257 |
Allowance for loan and lease losses | 15,346 | 15,766 |
Deferred compensation | 6,384 | 4,674 |
Organization and acquisitions costs | 366 | 393 |
Net operating loss carryforwards | 5,149 | 4,463 |
Non-accrual loan interest | 691 | 830 |
OREO writedowns | 1,106 | 1,781 |
Rehab tax credit projects | 3,547 | 2,438 |
Mortgage repurchase obligation | 330 | 882 |
Self-funded health plan | 578 | 0 |
Other | 183 | 778 |
Gross deferred tax assets | 34,877 | 44,298 |
Valuation allowance | -6,333 | -4,615 |
Total deferred tax assets | 28,544 | 39,683 |
Deferred tax liabilities: | ||
Tax effect of net unrealized gain on securities available for sale reflected in stockholdersb equity | -2,427 | 0 |
Premises, furniture and equipment | -8,569 | -8,660 |
Tax bad debt reserves | -21 | -523 |
Purchase accounting | -5,787 | -5,323 |
Prepaid expenses | -514 | -621 |
Mortgage servicing rights | -10,355 | -8,996 |
Deferred loan fees | -1,267 | -75 |
Other | -375 | -324 |
Gross deferred tax liabilities | -29,315 | -24,522 |
Net deferred tax asset (liability) | ($771) | $15,161 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Federal corporate tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Computed bexpectedb tax on net income | $19,249 | $16,493 | $23,511 | ||||||||
Increase (decrease) resulting from: | |||||||||||
Nontaxable interest income | -6,246 | -5,622 | -4,539 | ||||||||
State income taxes, net of federal tax benefit | 2,964 | 1,861 | 3,099 | ||||||||
Tax credits | -3,819 | -1,696 | -6,669 | ||||||||
Valuation allowance | 853 | 209 | 1,851 | ||||||||
Other | 95 | -910 | 131 | ||||||||
Income tax expense | $4,327 | $2,916 | $4,150 | $1,703 | $46 | $1,492 | $3,598 | $5,199 | $13,096 | $10,335 | $17,384 |
Effective tax rates | 23.80% | 21.90% | 25.90% |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits Roll Forward) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $779 | $773 |
Additions for tax positions related to the current year | 71 | 65 |
Additions for tax positions related to prior years | 37 | 188 |
Reductions for tax positions related to prior years | -181 | -247 |
Balance at end of period | $706 | $779 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||
Exercise of stock options and vesting of stock awards, amount | $124,000 | $98,000 | $222,000 |
AMT credit carryforward | 467,000 | ||
Annual limitation on deferred tax asset | 516,000 | ||
Deferred tax assets, state operating loss carryforwards | 3,300,000 | 2,400,000 | |
Valuation allowance | 6,333,000 | 4,615,000 | |
Tax credits | 3,819,000 | 1,696,000 | 6,669,000 |
Investment in low-income housing | 4,000,000 | 4,300,000 | 4,500,000 |
Unrecognized tax benefits | 706,000 | 779,000 | 773,000 |
Unrecognized tax benefits, accrued interest and penalties | 101,000 | 96,000 | |
Capital Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | 3,400,000 | 2,400,000 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 59,900,000 | 41,600,000 | |
State and Local Jurisdiction | Colorado | 2008 through 2011 | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax payment (refund) | 104,000 | ||
State and Local Jurisdiction | Operating Loss Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | 3,100,000 | 2,200,000 | |
FSI | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, federal operating loss carryforwards | 1,800,000 | 2,000,000 | |
FSI | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 5,400,000 | 6,000,000 | |
Low-income Housing | |||
Operating Loss Carryforwards [Line Items] | |||
Low income housing credit carryforward | 212,000 | ||
Tax credits | 755,000 | 798,000 | 798,000 |
Tax credits, expected utilization, 2016 | 581,000 | ||
Tax credits, expected utilization, 2017 | 581,000 | ||
Tax credits, expected utilization, 2018 | 581,000 | ||
Tax credits, expected utilization, 2019 | 581,000 | ||
Tax credits, expected utilization, 2020 | 241,000 | ||
Historic Rehabilitation Credit | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credits | $3,100,000 | $898,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cost recognized | $2.90 | $2.60 | $2.60 |
Employer matching contribution, percent | 3.00% | 3.00% | 3.00% |
Contributions by employer | $2.10 | $1.90 | $1.60 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Operating Leases) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | $4,194,000 | ||
2016 | 4,060,000 | ||
2017 | 2,971,000 | ||
2018 | 2,354,000 | ||
2019 | 1,920,000 | ||
Thereafter | 12,220,000 | ||
Total | 27,719,000 | ||
Rent expense | 5,500,000 | 4,400,000 | 2,800,000 |
Lease revenue | $503,000 | $505,000 | $496,000 |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Commitments to Extend Credit) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Long-term Credit Commitments [Line Items] | ||
Residential mortgage loans, repurchase obligation amount | $850,000 | $2,300,000 |
Reserve for Off-balance Sheet Activities | ||
Long-term Credit Commitments [Line Items] | ||
Reserve for unfunded commitments | 44,000 | 78,000 |
Commitments to Extend Credit | ||
Long-term Credit Commitments [Line Items] | ||
Commitments to extend credit, amount | 1,420,000,000 | 1,140,000,000 |
Standby Letters of Credit | ||
Long-term Credit Commitments [Line Items] | ||
Commitments to extend credit, amount | $38,900,000 | $39,700,000 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 11, 2014 | Jan. 22, 2013 | Dec. 31, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Typical options expiration period after date of grant | 10 years | |||||
Vested options, weighted average remaining contractual life | 2 years 0 months 21 days | |||||
Intrinsic value for vested options | $926,000 | |||||
Intrinsic value for the total of all options exercised | 168,000 | |||||
Fair value of shares under vested stock options and awards | 0 | |||||
Cash received from options exercised | 491,000 | 1,900,000 | ||||
Tax benefit from options exercised | 124,000 | 98,000 | ||||
Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation costs | 442,000 | 127,000 | 90,000 | |||
Number of shares of stock awarded for services performed | 31,725 | 13,100 | 5,200 | |||
Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, award vesting periods | 3 years | |||||
Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, award vesting periods | 4 years | |||||
Period Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, award vesting periods | 5 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, award service periods | 5 years | |||||
Share-based compensation costs | 0 | 10,000 | 157,000 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, award vesting periods | 5 years | |||||
Share-based compensation costs | 2,900,000 | 1,700,000 | 1,800,000 | |||
Equity instruments other than options, granted (in shares) | 67,190 | 72,595 | ||||
Award vesting, number of equal installments | 3 | |||||
Number of shares of stock awarded for services performed | 131,560 | 126,685 | 149,002 | |||
Total fair value of shares vested during period | 1,500,000 | |||||
Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments other than options, granted (in shares) | 32,645 | 40,990 | ||||
Long-Term Incentive Plan 2012 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 388,874 | |||||
Long-Term Incentive Plan 2012 | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based unrecognized compensation costs | 2,500,000 | |||||
2006 ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation costs | $32,000 | $194,000 | $151,000 | |||
Maximum number of shares issuable (in shares) | 500,000 | |||||
Stocks purchased under the plan (in shares) | 21,679 | 23,239 | 42,879 | |||
2006 ESPP | Fair Market Value at Investment Date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price of common stock, percent | 95.00% |
Stockbased_Compensation_Summar
Stock-based Compensation (Summary of Stock Options Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Outstanding at beginning of period (in shares) | 261,936 | 377,907 | 570,762 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | -24,334 | -96,921 | -172,521 |
Forfeited (in shares) | -21,751 | -19,050 | -20,334 |
Outstanding at end of period (in shares) | 215,851 | 261,936 | 377,907 |
Options exercisable at end of period (in shares) | 215,851 | 261,936 | 333,024 |
Weighted-Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $23.60 | $22.62 | $21.06 |
Granted (in dollars per share) | $0 | $0 | $0 |
Exercised (in dollars per share) | $20.20 | $19.73 | $17.39 |
Forfeited (in dollars per share) | $24.97 | $23.79 | $23.42 |
Outstanding at end of period (in dollars per share) | $23.85 | $23.60 | $22.62 |
Options exercisable at end of period (in dollars per share) | $23.85 | $23.60 | $23.16 |
Stockbased_Compensation_Summar1
Stock-based Compensation (Summary of RSUs Activity) (Details) (RSUs, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
RSUs | |||
Shares | |||
Outstanding at beginning of period (in shares) | 353,070 | 348,897 | 211,279 |
Granted (in shares) | 131,560 | 126,685 | 149,002 |
Vested (in shares) | -73,554 | -43,388 | 0 |
Forfeited (in shares) | -14,521 | -79,124 | -11,384 |
Outstanding at end of period (in shares) | 396,555 | 353,070 | 348,897 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of period (in usd per share) | $18.48 | $15.75 | $15.79 |
Granted (in usd per share) | $26.71 | $26.92 | $16.36 |
Vested (in usd per share) | $16.65 | $17 | $0 |
Forfeited (in usd per share) | $20.48 | $20.79 | $16.03 |
Outstanding at end of period (in usd per share) | $21.48 | $18.48 | $15.75 |
Stockholder_Rights_Plan_Detail
Stockholder Rights Plan (Details) (USD $) | 0 Months Ended | |||
Jan. 17, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2002 | |
votes | ||||
Temporary Equity [Line Items] | ||||
Original Rights Agreement, extended term | 10 years | |||
Number of preferred stock that can be purchased per right | 0.001 | |||
Preferred stock, dividend rate (in usd per share) | $1 | |||
Dividends, preferred stock, common share equivalents per share | 1,000 | |||
Liquidation value per share (in usd per share) | $1,000 | |||
Preferred stock, liquidation preference per share of common stock | 1,000 | |||
Preferred stock, number of voting rights | 1,000 | |||
Distribution date | 10 days | |||
Common stock shares, market value as a percentage of purchase price | 2 | |||
Minimum | ||||
Temporary Equity [Line Items] | ||||
Beneficial ownership, percentage | 15.00% | |||
Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Preferred stock, par value (in usd per share) | $1 | $1 | $1 | $1 |
Preferred stock, redemption price (in usd per share) | $70,000 | |||
Preferred stock, shares authorized | 16,000 | 16,000 | 16,000 | |
Preferred stock, shares issued | 0 | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Capital_Issuance_and_Redemptio1
Capital Issuance and Redemption (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 15, 2011 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 09, 2013 | Jan. 17, 2012 | |
director | ||||||
Class of Stock [Line Items] | ||||||
Liquidation value per share (in usd per share) | $1,000 | |||||
Tier 1 Capital | 578,564,000 | $537,964,000 | ||||
Shelf registration, maximum offering | 75,000,000 | |||||
Minimum | ||||||
Class of Stock [Line Items] | ||||||
Tier 1 Capital | 247,700,000 | |||||
Series C Preferred Stock | Minimum Outstanding Aggregate Liquidation Amount Has Been Met | ||||||
Class of Stock [Line Items] | ||||||
Number of directors that can be designated to the Board | 2 | |||||
Series C Preferred Stock | Right to Appoint a Representative as an Observer on the Board | ||||||
Class of Stock [Line Items] | ||||||
Number of dividend payments missed | 5 | |||||
Series C Preferred Stock | Right to Designate Two Directors to the Board | Minimum Outstanding Aggregate Liquidation Amount Has Been Met | ||||||
Class of Stock [Line Items] | ||||||
Number of dividend payments missed | 6 | |||||
Series C Preferred Stock | Minimum | Minimum Outstanding Aggregate Liquidation Amount Has Been Met | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, liquidation preference, value | 25,000,000 | |||||
Series C Preferred Stock | Issuance Date through September 30, 2011 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, dividend rate | 5.00% | |||||
Series C Preferred Stock | First Quarter of 2013 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, dividend rate | 2.00% | |||||
Series C Preferred Stock | Through March 15, 2016 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, dividend rate | 1.00% | |||||
Series C Preferred Stock | March 16, 2016 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, dividend rate | 9.00% | |||||
Series C Preferred Stock | Secretary of the Treasury | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued | 81,698 | |||||
Liquidation value per share (in usd per share) | 1,000 | |||||
Proceeds from issuance of preferred stock | 81,700,000 | 81,700,000 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements and Restrictions on Subsidiary Dividends (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | $703,032,000 | $599,038,000 |
Actual - Ratio | 15.73% | 14.69% |
For Capital Adequacy Purposes - Amount | 357,513,000 | 326,252,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 578,564,000 | 537,964,000 |
Actual - Ratio | 12.95% | 13.19% |
For Capital Adequacy Purposes - Amount | 178,757,000 | 163,126,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 578,564,000 | 537,964,000 |
Actual - Ratio | 9.75% | 9.67% |
For Capital Adequacy Purposes - Amount | 237,316,000 | 222,432,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
Minimum Capital Requirement | ||
Tier 1 Capital (to Average Assets) | ||
Retained earnings available for dividend payments | 205,000,000 | |
Capital Requirement to Remain Well Capitalized | ||
Tier 1 Capital (to Average Assets) | ||
Retained earnings available for dividend payments | 117,900,000 | |
Dubuque Bank and Trust Company | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 145,587,000 | 141,184,000 |
Actual - Ratio | 11.92% | 12.30% |
For Capital Adequacy Purposes - Amount | 97,676,000 | 91,854,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 122,094,000 | 114,818,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 136,178,000 | 130,859,000 |
Actual - Ratio | 11.15% | 11.40% |
For Capital Adequacy Purposes - Amount | 48,838,000 | 45,927,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 73,257,000 | 68,891,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 136,178,000 | 130,859,000 |
Actual - Ratio | 9.50% | 8.77% |
For Capital Adequacy Purposes - Amount | 57,359,000 | 59,717,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 71,699,000 | 74,646,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Galena State Bank & Trust Co. | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 27,644,000 | 27,398,000 |
Actual - Ratio | 13.39% | 13.42% |
For Capital Adequacy Purposes - Amount | 16,517,000 | 16,328,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 20,646,000 | 20,410,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 26,111,000 | 25,478,000 |
Actual - Ratio | 12.65% | 12.48% |
For Capital Adequacy Purposes - Amount | 8,258,000 | 8,164,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 12,387,000 | 12,246,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 26,111,000 | 25,478,000 |
Actual - Ratio | 8.97% | 8.65% |
For Capital Adequacy Purposes - Amount | 11,648,000 | 11,787,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 14,560,000 | 14,734,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Illinois Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 42,937,000 | 36,324,000 |
Actual - Ratio | 13.80% | 14.79% |
For Capital Adequacy Purposes - Amount | 24,891,000 | 19,654,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 31,113,000 | 24,568,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 39,721,000 | 33,252,000 |
Actual - Ratio | 12.77% | 13.53% |
For Capital Adequacy Purposes - Amount | 12,445,000 | 9,827,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 18,668,000 | 14,741,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 39,721,000 | 33,252,000 |
Actual - Ratio | 8.02% | 7.42% |
For Capital Adequacy Purposes - Amount | 19,820,000 | 17,926,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 24,775,000 | 22,407,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Wisconsin Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 62,780,000 | 59,747,000 |
Actual - Ratio | 12.71% | 13.08% |
For Capital Adequacy Purposes - Amount | 39,522,000 | 36,556,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 49,403,000 | 45,696,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 57,551,000 | 54,885,000 |
Actual - Ratio | 11.65% | 12.01% |
For Capital Adequacy Purposes - Amount | 19,761,000 | 18,278,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 29,642,000 | 27,417,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 57,551,000 | 54,885,000 |
Actual - Ratio | 8.85% | 8.76% |
For Capital Adequacy Purposes - Amount | 26,018,000 | 25,070,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 32,523,000 | 31,337,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
New Mexico Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 97,742,000 | 96,816,000 |
Actual - Ratio | 13.04% | 14.82% |
For Capital Adequacy Purposes - Amount | 59,953,000 | 52,254,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 74,941,000 | 65,317,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 90,870,000 | 89,601,000 |
Actual - Ratio | 12.13% | 13.72% |
For Capital Adequacy Purposes - Amount | 29,977,000 | 26,127,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 44,965,000 | 39,190,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 90,870,000 | 89,601,000 |
Actual - Ratio | 8.22% | 8.84% |
For Capital Adequacy Purposes - Amount | 44,232,000 | 40,530,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 55,290,000 | 50,663,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Arizona Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 51,287,000 | 47,335,000 |
Actual - Ratio | 14.57% | 14.59% |
For Capital Adequacy Purposes - Amount | 28,151,000 | 25,960,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 35,189,000 | 32,451,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 48,009,000 | 43,269,000 |
Actual - Ratio | 13.64% | 13.33% |
For Capital Adequacy Purposes - Amount | 14,076,000 | 12,980,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 21,114,000 | 19,470,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 48,009,000 | 43,269,000 |
Actual - Ratio | 10.25% | 10.33% |
For Capital Adequacy Purposes - Amount | 18,737,000 | 16,757,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 23,421,000 | 20,947,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Rocky Mountain Bank | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 47,848,000 | 50,314,000 |
Actual - Ratio | 12.78% | 14.24% |
For Capital Adequacy Purposes - Amount | 29,958,000 | 28,257,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 37,447,000 | 35,321,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 44,394,000 | 46,160,000 |
Actual - Ratio | 11.86% | 13.07% |
For Capital Adequacy Purposes - Amount | 14,979,000 | 14,128,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 22,468,000 | 21,193,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 44,394,000 | 46,160,000 |
Actual - Ratio | 9.53% | 10.01% |
For Capital Adequacy Purposes - Amount | 18,625,000 | 18,439,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 23,281,000 | 23,049,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Summit Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 12,544,000 | 11,600,000 |
Actual - Ratio | 11.80% | 12.79% |
For Capital Adequacy Purposes - Amount | 8,503,000 | 7,253,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 10,628,000 | 9,067,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 11,213,000 | 10,464,000 |
Actual - Ratio | 10.55% | 11.54% |
For Capital Adequacy Purposes - Amount | 4,251,000 | 3,627,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 6,377,000 | 5,440,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 11,213,000 | 10,464,000 |
Actual - Ratio | 8.44% | 9.16% |
For Capital Adequacy Purposes - Amount | 5,317,000 | 4,567,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 6,647,000 | 5,709,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Minnesota Bank & Trust | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 15,267,000 | 14,475,000 |
Actual - Ratio | 12.43% | 12.13% |
For Capital Adequacy Purposes - Amount | 9,823,000 | 9,547,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 12,279,000 | 11,933,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 14,151,000 | 13,384,000 |
Actual - Ratio | 11.53% | 11.22% |
For Capital Adequacy Purposes - Amount | 4,911,000 | 4,773,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 7,367,000 | 7,160,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 14,151,000 | 13,384,000 |
Actual - Ratio | 8.90% | 8.14% |
For Capital Adequacy Purposes - Amount | 6,360,000 | 6,575,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 7,950,000 | 8,218,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Morrill & Janes Bank and Trust Company | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 65,224,000 | 60,559,000 |
Actual - Ratio | 12.02% | 13.00% |
For Capital Adequacy Purposes - Amount | 43,417,000 | 37,267,000 |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action - Amount | 54,271,000 | 46,583,000 |
To Be Well Capitalized Under Prompt Corrective Action - Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual - Amount | 62,918,000 | 60,153,000 |
Actual - Ratio | 11.59% | 12.91% |
For Capital Adequacy Purposes - Amount | 21,709,000 | 18,633,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | 32,563,000 | 27,950,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual - Amount | 62,918,000 | 60,153,000 |
Actual - Ratio | 7.34% | 7.38% |
For Capital Adequacy Purposes - Amount | 34,269,000 | 32,624,000 |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount | $42,836,000 | $40,780,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% |
Fair_Value_Fair_Value_Measurem
Fair Value (Fair Value Measurement Recurring) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $0 | $1,801 |
Securities available for sale | 1,401,868 | 1,633,902 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 1,801 |
Securities available for sale | 2,529 | 4,084 |
Derivative financial instruments | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Level 1 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
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 | 1,394,392 | 1,626,520 |
Derivative financial instruments | 0 | 0 |
Derivative liabilities | 3,646 | 3,697 |
Level 2 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Level 2 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 275 | 1,206 |
Derivative liabilities | 1,619 | 133 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Securities available for sale | 4,947 | 3,298 |
Derivative financial instruments | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 3 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 2,496 | 1,809 |
Level 3 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 1,801 |
Total assets at fair value | 1,404,639 | 1,638,718 |
Derivative liabilities | 3,646 | 3,697 |
Total liabilities at fair value | 5,265 | 3,830 |
Recurring Basis | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 2,496 | 1,809 |
Recurring Basis | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 275 | 1,206 |
Derivative liabilities | 1,619 | 133 |
Recurring Basis | U.S. Government Corporations and Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 24,093 | 218,303 |
Recurring Basis | Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,219,266 | 1,143,947 |
Recurring Basis | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 153,426 | 266,624 |
Recurring Basis | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,083 | 5,028 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 1,801 |
Total assets at fair value | 2,529 | 5,885 |
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Level 1 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Recurring Basis | Level 1 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | |
Derivative liabilities | 0 | 0 |
Recurring Basis | Level 1 | U.S. Government Corporations and Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,529 | 4,084 |
Recurring Basis | Level 1 | Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Level 1 | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Level 1 | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Total assets at fair value | 1,394,667 | 1,627,726 |
Derivative liabilities | 3,646 | 3,697 |
Total liabilities at fair value | 5,265 | 3,830 |
Recurring Basis | Level 2 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Recurring Basis | Level 2 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 275 | 1,206 |
Derivative liabilities | 1,619 | 133 |
Recurring Basis | Level 2 | U.S. Government Corporations and Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,564 | 214,219 |
Recurring Basis | Level 2 | Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,214,319 | 1,140,649 |
Recurring Basis | Level 2 | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 153,426 | 266,624 |
Recurring Basis | Level 2 | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,083 | 5,028 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Total assets at fair value | 7,443 | 5,107 |
Derivative liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Level 3 | Interest Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 2,496 | 1,809 |
Recurring Basis | Level 3 | Forward Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring Basis | Level 3 | U.S. Government Corporations and Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Level 3 | Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,947 | 3,298 |
Recurring Basis | Level 3 | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Level 3 | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $0 |
Fair_Value_Fair_Value_Measurem1
Fair Value (Fair Value Measurement Non-recurring) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned | $19,016 | [1] | $29,852 | [1] |
Commercial | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 1,033 | [1] | 7,229 | [1] |
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 | 12,584 | [1] | 7,749 | [1] |
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 | 552 | [1] | 13,062 | [1] |
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 | 3,173 | [1] | 3,396 | [1] |
Consumer | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 2,003 | [1] | 1,763 | [1] |
Nonrecurring Basis | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 19,345 | 33,199 | ||
Other real estate owned | 19,016 | 29,852 | ||
Nonrecurring Basis | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 3,402 | 2,800 | ||
Other real estate owned | 1,938 | 2,799 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 19,345 | 33,199 | ||
Other real estate owned | 19,016 | 29,852 | ||
Nonrecurring Basis | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 1,033 | 7,229 | ||
Nonrecurring Basis | Commercial | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 659 | 919 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | Commercial | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 1,033 | 7,229 | ||
Nonrecurring Basis | Commercial Real Estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 12,584 | 7,749 | ||
Nonrecurring Basis | Commercial Real Estate | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 492 | 1,881 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | 12,584 | 7,749 | ||
Nonrecurring Basis | Agricultural and Agricultural Real Estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 552 | 13,062 | ||
Nonrecurring Basis | Agricultural and Agricultural Real Estate | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 2,229 | 0 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | 552 | 13,062 | ||
Nonrecurring Basis | Residential Real Estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 3,173 | 3,396 | ||
Nonrecurring Basis | Residential Real Estate | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 0 | 0 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | 3,173 | 3,396 | ||
Nonrecurring Basis | Consumer | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 2,003 | 1,763 | ||
Nonrecurring Basis | Consumer | Losses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | 22 | 0 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | 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 | ||
Nonrecurring Basis | Consumer | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Collateral dependent impaired loans | $2,003 | $1,763 | ||
[1] | 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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Securities available for sale | $1,401,868 | $1,633,902 | ||
Level 3 | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Securities available for sale | 4,947 | 3,298 | ||
Derivative financial instruments | 0 | 0 | ||
Other real estate owned | 19,016 | [1] | 29,852 | [1] |
Level 3 | Commercial | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Collateral dependent impaired loans | 1,033 | [1] | 7,229 | [1] |
Level 3 | Commercial Real Estate | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Collateral dependent impaired loans | 12,584 | [1] | 7,749 | [1] |
Level 3 | Agricultural and Agricultural Real Estate | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Collateral dependent impaired loans | 552 | [1] | 13,062 | [1] |
Level 3 | Residential Real Estate | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Collateral dependent impaired loans | 3,173 | [1] | 3,396 | [1] |
Level 3 | Consumer | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Collateral dependent impaired loans | 2,003 | [1] | 1,763 | [1] |
Level 3 | Interest Rate Lock Commitments | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Derivative financial instruments | 2,496 | [2] | 1,809 | [3] |
Closing ratio | 84.00% | 87.00% | ||
Level 3 | Z-Tranche Securities | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Securities available for sale | $4,947 | $3,298 | ||
Level 3 | Z-Tranche Securities | Weighted Average | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Actual defaults | 24.50% | 20.80% | ||
Actual deferrals | 12.90% | 11.10% | ||
Level 3 | Z-Tranche Securities | Minimum | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Pretax discount rate | 7.00% | 7.00% | ||
Actual defaults | 15.60% | 12.50% | ||
Actual deferrals | 7.20% | 5.10% | ||
Level 3 | Z-Tranche Securities | Maximum | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Pretax discount rate | 9.00% | 9.00% | ||
Actual defaults | 30.60% | 28.20% | ||
Actual deferrals | 17.30% | 16.00% | ||
[1] | 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. | |||
[2] | The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2014 was 84%. | |||
[3] | The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position that management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data; therefore, providing a range would not be meaningful. The weighted average closing ratio at December 31, 2013 was 87%. |
Fair_Value_Changes_Level_3_Ass
Fair Value (Changes Level 3 Assets (Fair Value, Recurring)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Rate Lock Commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $1,809 | $9,353 |
Total gains (losses), net: | ||
Included in earnings | 2,422 | -10,518 |
Purchases, issuances, sales and settlements: | ||
Issuances | 2,038 | 9,821 |
Settlements | -3,773 | -6,847 |
Balance at end of period | 2,496 | 1,809 |
Z-Tranche Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 3,298 | 4,089 |
Total gains (losses), net: | ||
Included in earnings | 0 | -1,587 |
Included in other comprehensive income | 1,783 | 826 |
Purchases, issuances, sales and settlements: | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | -134 | -30 |
Balance at end of period | $4,947 | $3,298 |
Fair_Value_Estimated_Fair_Valu
Fair Value (Estimated Fair Value Financial Instruments (Including Carrying Amounts)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Trading | $0 | $1,801 |
Available for sale | 1,401,868 | 1,633,902 |
Held to maturity | 296,768 | 237,437 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 73,871 | 125,270 |
Time deposits in other financial institutions | 2,605 | 0 |
Trading | 0 | 1,801 |
Available for sale | 2,529 | 4,084 |
Held to maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward Commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Lock Commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Demand Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Savings Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Real Estate | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agricultural and Agricultural Real Estate | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential Real Estate | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | 0 |
Trading | 0 | 0 |
Available for sale | 1,394,392 | 1,626,520 |
Held to maturity | 296,768 | 237,437 |
Other investments | 20,263 | 21,608 |
Loans held for sale | 70,514 | 46,665 |
Loans, net | 3,814,536 | 3,396,662 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 330,264 | 408,756 |
Other borrowings | 401,978 | 355,923 |
Derivatives | 3,646 | 3,697 |
Significant Other Observable Inputs (Level 2) | Forward Commitments | ||
Financial assets: | ||
Derivatives | 275 | 1,206 |
Financial liabilities: | ||
Derivatives | 1,619 | 133 |
Significant Other Observable Inputs (Level 2) | Interest Rate Lock Commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Demand Deposits | ||
Financial liabilities: | ||
Deposits | 1,295,193 | 1,238,581 |
Significant Other Observable Inputs (Level 2) | Savings Deposits | ||
Financial liabilities: | ||
Deposits | 2,687,493 | 2,535,242 |
Significant Other Observable Inputs (Level 2) | Time Deposits | ||
Financial liabilities: | ||
Deposits | 785,336 | 892,676 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Financial assets: | ||
Loans, net | 1,008,769 | 923,272 |
Significant Other Observable Inputs (Level 2) | Commercial Real Estate | ||
Financial assets: | ||
Loans, net | 1,687,138 | 1,505,024 |
Significant Other Observable Inputs (Level 2) | Agricultural and Agricultural Real Estate | ||
Financial assets: | ||
Loans, net | 423,416 | 365,024 |
Significant Other Observable Inputs (Level 2) | Residential Real Estate | ||
Financial assets: | ||
Loans, net | 367,005 | 331,966 |
Significant Other Observable Inputs (Level 2) | Consumer | ||
Financial assets: | ||
Loans, net | 328,208 | 271,376 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | 0 |
Trading | 0 | 0 |
Available for sale | 4,947 | 3,298 |
Held to maturity | 0 | 0 |
Other investments | 235 | 235 |
Loans held for sale | 0 | 0 |
Loans, net | 19,345 | 33,199 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Forward Commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest Rate Lock Commitments | ||
Financial assets: | ||
Derivatives | 2,496 | 1,809 |
Significant Unobservable Inputs (Level 3) | Demand Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Savings Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time Deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Financial assets: | ||
Loans, net | 1,033 | 7,229 |
Significant Unobservable Inputs (Level 3) | Commercial Real Estate | ||
Financial assets: | ||
Loans, net | 12,584 | 7,749 |
Significant Unobservable Inputs (Level 3) | Agricultural and Agricultural Real Estate | ||
Financial assets: | ||
Loans, net | 552 | 13,062 |
Significant Unobservable Inputs (Level 3) | Residential Real Estate | ||
Financial assets: | ||
Loans, net | 3,173 | 3,396 |
Significant Unobservable Inputs (Level 3) | Consumer | ||
Financial assets: | ||
Loans, net | 2,003 | 1,763 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 73,871 | 125,270 |
Time deposits in other financial institutions | 2,605 | 0 |
Trading | 0 | 1,801 |
Available for sale | 1,401,868 | 1,633,902 |
Held to maturity | 284,587 | 237,498 |
Other investments | 20,498 | 21,843 |
Loans held for sale | 70,514 | 46,665 |
Loans, net | 3,836,554 | 3,461,016 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 330,264 | 408,756 |
Other borrowings | 396,255 | 350,109 |
Derivatives | 3,646 | 3,697 |
Carrying Amount | Forward Commitments | ||
Financial assets: | ||
Derivatives | 275 | 1,206 |
Financial liabilities: | ||
Derivatives | 1,619 | 133 |
Carrying Amount | Interest Rate Lock Commitments | ||
Financial assets: | ||
Derivatives | 2,496 | 1,809 |
Carrying Amount | Demand Deposits | ||
Financial liabilities: | ||
Deposits | 1,295,193 | 1,238,581 |
Carrying Amount | Savings Deposits | ||
Financial liabilities: | ||
Deposits | 2,687,493 | 2,535,242 |
Carrying Amount | Time Deposits | ||
Financial liabilities: | ||
Deposits | 785,336 | 892,676 |
Carrying Amount | Commercial | ||
Financial assets: | ||
Loans, net | 1,024,065 | 936,305 |
Carrying Amount | Commercial Real Estate | ||
Financial assets: | ||
Loans, net | 1,690,899 | 1,516,352 |
Carrying Amount | Agricultural and Agricultural Real Estate | ||
Financial assets: | ||
Loans, net | 420,623 | 374,203 |
Carrying Amount | Residential Real Estate | ||
Financial assets: | ||
Loans, net | 377,094 | 347,266 |
Carrying Amount | Consumer | ||
Financial assets: | ||
Loans, net | 323,873 | 286,890 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 73,871 | 125,270 |
Time deposits in other financial institutions | 2,605 | 0 |
Trading | 0 | 1,801 |
Available for sale | 1,401,868 | 1,633,902 |
Held to maturity | 296,768 | 237,437 |
Other investments | 20,498 | 21,843 |
Loans held for sale | 70,514 | 46,665 |
Loans, net | 3,833,881 | 3,429,861 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 330,264 | 408,756 |
Other borrowings | 401,978 | 355,923 |
Derivatives | 3,646 | 3,697 |
Estimated Fair Value | Forward Commitments | ||
Financial assets: | ||
Derivatives | 275 | 1,206 |
Financial liabilities: | ||
Derivatives | 1,619 | 133 |
Estimated Fair Value | Interest Rate Lock Commitments | ||
Financial assets: | ||
Derivatives | 2,496 | 1,809 |
Estimated Fair Value | Demand Deposits | ||
Financial liabilities: | ||
Deposits | 1,295,193 | 1,238,581 |
Estimated Fair Value | Savings Deposits | ||
Financial liabilities: | ||
Deposits | 2,687,493 | 2,535,242 |
Estimated Fair Value | Time Deposits | ||
Financial liabilities: | ||
Deposits | 785,336 | 892,676 |
Estimated Fair Value | Commercial | ||
Financial assets: | ||
Loans, net | 1,009,802 | 930,501 |
Estimated Fair Value | Commercial Real Estate | ||
Financial assets: | ||
Loans, net | 1,699,722 | 1,512,773 |
Estimated Fair Value | Agricultural and Agricultural Real Estate | ||
Financial assets: | ||
Loans, net | 423,968 | 378,086 |
Estimated Fair Value | Residential Real Estate | ||
Financial assets: | ||
Loans, net | 370,178 | 335,362 |
Estimated Fair Value | Consumer | ||
Financial assets: | ||
Loans, net | $330,211 | $273,139 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | $52,171 | $51,491 | $50,799 | $48,612 | $46,357 | $39,880 | $38,924 | $38,667 | $203,073 | $163,828 | $150,156 |
Provision for loan losses | 2,866 | 2,553 | 2,751 | 6,331 | 2,049 | 5,149 | 1,862 | 637 | 14,501 | 9,697 | 8,202 |
Total noninterest income | 21,233 | 20,606 | 21,535 | 18,850 | 17,574 | 20,718 | 24,858 | 26,468 | 82,224 | 89,618 | 108,662 |
Total noninterest expense | 53,948 | 54,655 | 54,659 | 52,538 | 53,901 | 47,147 | 48,766 | 46,747 | 215,800 | 196,561 | 183,381 |
Income (loss) before income taxes | 54,996 | 47,188 | 67,235 | ||||||||
Segment Assets | 6,052,362 | 5,923,716 | 6,052,362 | 5,923,716 | 4,990,553 | ||||||
Average Loans | 3,744,830 | 3,016,433 | 2,696,452 | ||||||||
Community and Other Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | 200,394 | 161,452 | 147,903 | ||||||||
Provision for loan losses | 14,501 | 9,697 | 8,202 | ||||||||
Total noninterest income | 48,330 | 49,810 | 50,947 | ||||||||
Total noninterest expense | 172,392 | 150,767 | 142,646 | ||||||||
Income (loss) before income taxes | 61,831 | 50,798 | 48,002 | ||||||||
Segment Assets | 5,951,875 | 5,850,976 | 5,951,875 | 5,850,976 | 4,868,618 | ||||||
Average Loans | 3,679,908 | 2,939,856 | 2,605,151 | ||||||||
Mortgage Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | 2,679 | 2,376 | 2,253 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Total noninterest income | 33,894 | 39,808 | 57,715 | ||||||||
Total noninterest expense | 43,408 | 45,794 | 40,735 | ||||||||
Income (loss) before income taxes | -6,835 | -3,610 | 19,233 | ||||||||
Segment Assets | 100,487 | 72,740 | 100,487 | 72,740 | 121,935 | ||||||
Average Loans | $64,922 | $76,577 | $91,301 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Information (Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and interest bearing deposits | $73,871 | $125,270 | $168,054 | $129,834 |
Trading securities | 0 | 1,801 | ||
Securities available for sale | 1,401,868 | 1,633,902 | ||
Other investments, at cost | 20,498 | 21,843 | ||
Other assets | 59,983 | 76,899 | ||
TOTAL ASSETS | 6,052,362 | 5,923,716 | 4,990,553 | |
Liabilities and stockholdersb equity: | ||||
Other borrowings | 396,255 | 350,109 | ||
Accrued expenses and other liabilities | 61,504 | 58,892 | ||
TOTAL LIABILITIES | 5,556,045 | 5,484,256 | ||
Stockholdersb equity: | ||||
Common stock | 18,511 | 18,399 | ||
Capital surplus | 95,816 | 91,632 | ||
Retained earnings | 298,764 | 265,067 | ||
Accumulated other comprehensive income (loss) | 1,528 | -17,336 | ||
Treasury stock | 0 | 0 | ||
TOTAL EQUITY | 496,317 | 439,460 | 404,539 | 352,893 |
TOTAL LIABILITIES AND EQUITY | 6,052,362 | 5,923,716 | ||
Parent | ||||
Assets: | ||||
Cash and interest bearing deposits | 124,387 | 17,912 | 17,447 | 26,960 |
Trading securities | 0 | 1,801 | ||
Securities available for sale | 5,684 | 3,952 | ||
Other investments, at cost | 235 | 235 | ||
Investment in subsidiaries | 592,324 | 561,272 | ||
Other assets | 19,272 | 33,407 | ||
Due from subsidiaries | 6,000 | 6,000 | ||
TOTAL ASSETS | 747,902 | 624,579 | ||
Liabilities and stockholdersb equity: | ||||
Other borrowings | 238,941 | 174,153 | ||
Accrued expenses and other liabilities | 12,644 | 10,966 | ||
TOTAL LIABILITIES | 251,585 | 185,119 | ||
Stockholdersb equity: | ||||
Preferred stock | 81,698 | 81,698 | ||
Common stock | 18,511 | 18,399 | ||
Capital surplus | 95,816 | 91,632 | ||
Retained earnings | 298,764 | 265,067 | ||
Accumulated other comprehensive income (loss) | 1,528 | -17,336 | ||
Treasury stock | 0 | 0 | ||
TOTAL EQUITY | 496,317 | 439,460 | ||
TOTAL LIABILITIES AND EQUITY | $747,902 | $624,579 |
Parent_Company_Only_Financial_3
Parent Company Only Financial Information (Income Statements) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues: | |||||||||||
Securities gains, net | $3,668 | $7,121 | $13,998 | ||||||||
Operating expenses: | |||||||||||
Interest | 33,969 | 35,683 | 39,182 | ||||||||
Salaries and benefits | 129,843 | 118,224 | 105,727 | ||||||||
Professional fees | 18,241 | 17,532 | 15,338 | ||||||||
Income (loss) before income taxes | 54,996 | 47,188 | 67,235 | ||||||||
Income tax benefit | -4,327 | -2,916 | -4,150 | -1,703 | -46 | -1,492 | -3,598 | -5,199 | -13,096 | -10,335 | -17,384 |
NET INCOME ATTRIBUTABLE TO HEARTLAND | 12,263 | 11,973 | 10,774 | 6,890 | 7,935 | 6,810 | 9,556 | 12,488 | 41,900 | 36,789 | 49,792 |
Preferred dividends and discount | -204 | -205 | -204 | -204 | -204 | -276 | -205 | -408 | -817 | -1,093 | -3,400 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | 12,059 | 11,768 | 10,570 | 6,686 | 7,731 | 6,534 | 9,351 | 12,080 | 41,083 | 35,696 | 46,392 |
Parent | |||||||||||
Operating revenues: | |||||||||||
Dividends from subsidiaries | 47,485 | 47,750 | 42,800 | ||||||||
Securities gains, net | 0 | 2,316 | 0 | ||||||||
Gain (loss) on trading account securities | -38 | 1,421 | 47 | ||||||||
Other | 640 | 726 | 664 | ||||||||
Total operating revenues | 48,087 | 52,213 | 43,511 | ||||||||
Operating expenses: | |||||||||||
Interest | 10,052 | 9,206 | 9,133 | ||||||||
Salaries and benefits | 5,584 | 5,104 | 6,191 | ||||||||
Professional fees | 3,406 | 3,671 | 3,100 | ||||||||
Other operating expenses | 2,173 | 1,577 | 2,417 | ||||||||
Total operating expenses | 21,215 | 19,558 | 20,841 | ||||||||
Equity in undistributed earnings (losses) | 6,749 | -1,275 | 19,739 | ||||||||
Income (loss) before income taxes | 33,621 | 31,380 | 42,409 | ||||||||
Income tax benefit | 8,279 | 5,409 | 7,383 | ||||||||
NET INCOME ATTRIBUTABLE TO HEARTLAND | 41,900 | 36,789 | 49,792 | ||||||||
Preferred dividends and discount | -817 | -1,093 | -3,400 | ||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $41,083 | $35,696 | $46,392 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Information (Cash Flows) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||||||||||
Net income | $12,263 | $11,973 | $10,774 | $6,890 | $7,935 | $6,810 | $9,556 | $12,488 | $41,900 | $36,789 | $49,792 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Securities gains, net | -3,668 | -7,121 | -13,998 | ||||||||
(Increase) decrease in trading account securities | 1,801 | -1,421 | -47 | ||||||||
Other, net | 7,715 | -666 | 10,117 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 80,401 | 135,588 | 48,698 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of other securities | -11,856 | -7,288 | -851 | ||||||||
Proceeds from sales of available for sale securities | 791,767 | 546,532 | 576,083 | ||||||||
Proceeds from the sale of other investments | 13,201 | 5,588 | 4,694 | ||||||||
Net cash acquired in acquisitions | 0 | 49,665 | 61,778 | ||||||||
NET CASH USED BY INVESTING ACTIVITIES | -193,672 | -323,957 | -349,713 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from other borrowings | 78,950 | 5,160 | 11,700 | ||||||||
Repayments of other borrowings | -32,804 | -66,885 | -6,806 | ||||||||
Cash dividends paid | -8,203 | -8,001 | -11,695 | ||||||||
Purchase of treasury stock | -899 | -2,102 | -2,937 | ||||||||
Proceeds from issuance of common stock | 1,673 | 4,265 | 9,557 | ||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 61,872 | 145,585 | 339,235 | ||||||||
Net increase (decrease) in cash and cash equivalents | -51,399 | -42,784 | 38,220 | ||||||||
Cash and cash equivalents at beginning of year | 125,270 | 168,054 | 125,270 | 168,054 | 129,834 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 73,871 | 125,270 | 73,871 | 125,270 | 168,054 | ||||||
Supplemental disclosure: | |||||||||||
Stock consideration granted for acquisition | 0 | 38,755 | 0 | ||||||||
Parent | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 41,900 | 36,789 | 49,792 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed (earnings) losses of subsidiaries | -6,749 | 1,275 | -19,739 | ||||||||
Securities gains, net | 0 | -2,316 | 0 | ||||||||
(Increase) decrease in due from subsidiaries | 0 | 1,000 | -4,250 | ||||||||
Increase in accrued expenses and other liabilities | 1,678 | -6,125 | 4,448 | ||||||||
(Increase) decrease in other assets | 14,135 | -4,104 | -7,163 | ||||||||
(Increase) decrease in trading account securities | 1,801 | -1,421 | -47 | ||||||||
Other, net | 3,086 | 4,089 | 1,776 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 55,851 | 29,187 | 24,817 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital contributions to subsidiaries | -6,735 | -69,429 | -32,841 | ||||||||
Purchases of other securities | 0 | 0 | -195 | ||||||||
Proceeds from sales of available for sale securities | 0 | 2,925 | 0 | ||||||||
Proceeds from the sale of other investments | 0 | 0 | 155 | ||||||||
Net cash acquired in acquisitions | 0 | 44,697 | 0 | ||||||||
NET CASH USED BY INVESTING ACTIVITIES | -6,735 | -21,807 | -32,881 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from other borrowings | 73,950 | 80 | 10,000 | ||||||||
Repayments of other borrowings | -9,162 | -1,255 | -6,374 | ||||||||
Cash dividends paid | -8,203 | -8,001 | -11,695 | ||||||||
Purchase of treasury stock | -899 | -2,004 | -2,937 | ||||||||
Proceeds from issuance of common stock | 1,673 | 4,265 | 9,557 | ||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 57,359 | -6,915 | -1,449 | ||||||||
Net increase (decrease) in cash and cash equivalents | 106,475 | 465 | -9,513 | ||||||||
Cash and cash equivalents at beginning of year | 17,912 | 17,447 | 17,912 | 17,447 | 26,960 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 124,387 | 17,912 | 124,387 | 17,912 | 17,447 | ||||||
Supplemental disclosure: | |||||||||||
Stock consideration granted for acquisition | $0 | $38,755 | $0 |
Summary_of_Quarterly_Financial2
Summary of Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net interest income | $52,171 | $51,491 | $50,799 | $48,612 | $46,357 | $39,880 | $38,924 | $38,667 | $203,073 | $163,828 | $150,156 |
Provision for loan and lease losses | 2,866 | 2,553 | 2,751 | 6,331 | 2,049 | 5,149 | 1,862 | 637 | 14,501 | 9,697 | 8,202 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 49,305 | 48,938 | 48,048 | 42,281 | 44,308 | 34,731 | 37,062 | 38,030 | 188,572 | 154,131 | 141,954 |
Noninterest income | 21,233 | 20,606 | 21,535 | 18,850 | 17,574 | 20,718 | 24,858 | 26,468 | 82,224 | 89,618 | 108,662 |
Noninterest expense | 53,948 | 54,655 | 54,659 | 52,538 | 53,901 | 47,147 | 48,766 | 46,747 | 215,800 | 196,561 | 183,381 |
Income taxes (includes $533 and $1,884 of income tax expense reclassified from accumulated other comprehensive income for the years ended December 31, 2014, and 2013, respectively) | 4,327 | 2,916 | 4,150 | 1,703 | 46 | 1,492 | 3,598 | 5,199 | 13,096 | 10,335 | 17,384 |
NET INCOME | 12,263 | 11,973 | 10,774 | 6,890 | 7,935 | 6,810 | 9,556 | 12,552 | 41,900 | 36,853 | 49,851 |
Net income available to noncontrolling interest, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -64 | 0 | -64 | -59 |
NET INCOME ATTRIBUTABLE TO HEARTLAND | 12,263 | 11,973 | 10,774 | 6,890 | 7,935 | 6,810 | 9,556 | 12,488 | 41,900 | 36,789 | 49,792 |
Preferred stock dividends and discount | -204 | -205 | -204 | -204 | -204 | -276 | -205 | -408 | -817 | -1,093 | -3,400 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $12,059 | $11,768 | $10,570 | $6,686 | $7,731 | $6,534 | $9,351 | $12,080 | $41,083 | $35,696 | $46,392 |
Earnings per common share b basic (in dollars per share) | $0.65 | $0.64 | $0.57 | $0.36 | $0.43 | $0.39 | $0.55 | $0.72 | $2.23 | $2.08 | $2.81 |
Earnings per common share b diluted (in dollars per share) | $0.64 | $0.63 | $0.56 | $0.36 | $0.42 | $0.38 | $0.54 | $0.70 | $2.19 | $2.04 | $2.77 |
Cash dividends per share common stock (in dollars per share) | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.40 | $0.40 | $0.50 |
Book value per common share (in dollars per share) | $22.40 | $21.74 | $21.16 | $20.36 | $19.44 | $18.58 | $18.51 | $19.54 | |||
Weighted average common shares outstanding | 18,482,059 | 18,468,762 | 18,458,113 | 18,437,253 | 18,096,345 | 16,935,581 | 16,907,405 | 16,851,672 | 18,462,000 | 17,199,000 | 16,518,000 |
Weighted average diluted common shares outstanding | 18,762,272 | 18,752,748 | 18,746,735 | 18,724,936 | 18,360,470 | 17,221,154 | 17,203,924 | 17,187,180 | 18,742,000 | 17,460,000 | 16,769,000 |