Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 04, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HEARTLAND FINANCIAL USA INC | |
Entity Central Index Key | 920,112 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 20,637,321 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 76,954 | $ 64,150 |
Federal funds sold and other short-term investments | 14,151 | 9,721 |
Cash and cash equivalents | 91,105 | 73,871 |
Time deposits in other financial institutions | 2,355 | 2,605 |
Securities: | ||
Available for sale, at fair value (cost of $1,253,607 at September 30, 2015, and $1,396,794 at December 31, 2014) | 1,261,687 | 1,401,868 |
Held to maturity, at cost (fair value of $294,622 at September 30, 2015, and $296,768 at December 31, 2014) | 282,200 | 284,587 |
Other investments, at cost | 19,292 | 20,498 |
Loans held for sale | 102,569 | 70,514 |
Loans and leases receivable: | ||
Held to maturity | 4,642,523 | 3,876,745 |
Loans covered by loss share agreements | 0 | 1,258 |
Allowance for loan and lease losses | (47,105) | (41,449) |
Loans and leases receivable, net | 4,595,418 | 3,836,554 |
Premises, furniture and equipment, net | 144,046 | 130,713 |
Premises, furniture and equipment held for sale | 3,440 | 0 |
Other real estate, net | 17,041 | 19,016 |
Goodwill | 56,828 | 35,583 |
Other intangible assets, net | 48,695 | 33,932 |
Cash surrender value on life insurance | 99,564 | 82,638 |
Other assets | 81,644 | 59,433 |
TOTAL ASSETS | 6,805,884 | 6,051,812 |
Deposits: | ||
Demand | 1,632,005 | 1,295,193 |
Savings | 2,936,611 | 2,687,493 |
Time | 938,621 | 785,336 |
Total deposits | 5,507,237 | 4,768,022 |
Short-term borrowings | 335,845 | 330,264 |
Other borrowings | 302,086 | 395,705 |
Accrued expenses and other liabilities | 69,707 | 61,504 |
TOTAL LIABILITIES | 6,214,875 | 5,555,495 |
STOCKHOLDERS' EQUITY: | ||
Common stock (par value $1 per share; authorized 30,000,000 shares at September 30, 2015, and 25,000,000 shares at December 31, 2014; issued 20,639,886 shares at September 30, 2015, and 18,511,125 shares at December 31, 2014) | 20,640 | 18,511 |
Capital surplus | 149,613 | 95,816 |
Retained earnings | 337,421 | 298,764 |
Accumulated other comprehensive income | 1,731 | 1,528 |
Treasury stock at cost (2,565 shares at September 30, 2015 and 0 at December 31, 2014) | (94) | 0 |
TOTAL STOCKHOLDERS' EQUITY | 591,009 | 496,317 |
TOTAL LIABILITIES AND EQUITY | 6,805,884 | 6,051,812 |
Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Series A Junior Participating Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Series C Fixed Rate Non-Cumulative Perpetual Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | $ 81,698 | $ 81,698 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cost of available for sale securities | $ 1,253,607 | $ 1,396,794 |
Fair value of held to maturity securities | $ 294,622 | $ 296,768 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 30,000,000 | 25,000,000 |
Common stock, shares issued | 20,639,886 | 18,511,125 |
Treasury stock shares | 2,565 | 0 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,604 | 20,604 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series A Junior Participating Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 16,000 | 16,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series C Fixed Rate Non-Cumulative Perpetual Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 81,698 | 81,698 |
Preferred stock, shares issued | 81,698 | 81,698 |
Preferred stock, shares outstanding | 81,698 | 81,698 |
Preferred stock, liquidation value | $ 81,700 | $ 81,700 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 58,328 | $ 49,311 | $ 167,201 | $ 143,796 |
Interest on securities: | ||||
Taxable | 5,858 | 7,547 | 19,729 | 22,755 |
Nontaxable | 3,077 | 3,249 | 8,867 | 10,079 |
Interest on federal funds sold | 1 | 1 | 3 | 1 |
Interest on interest bearing deposits in other financial institutions | 4 | 6 | 11 | 20 |
TOTAL INTEREST INCOME | 67,268 | 60,114 | 195,811 | 176,651 |
INTEREST EXPENSE: | ||||
Interest on deposits | 3,767 | 4,655 | 11,758 | 14,010 |
Interest on short-term borrowings | 228 | 227 | 638 | 655 |
Interest on other borrowings (includes $557 and $577 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the three months ended September 30, 2015 and 2014, respectively, and $1,680 and $1,671 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the nine months ended September 30, 2015 and 2014, respectively) | 3,549 | 3,741 | 12,117 | 11,084 |
TOTAL INTEREST EXPENSE | 7,544 | 8,623 | 24,513 | 25,749 |
NET INTEREST INCOME | 59,724 | 51,491 | 171,298 | 150,902 |
Provision for loan and lease losses | 3,181 | 2,553 | 10,526 | 11,635 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 56,543 | 48,938 | 160,772 | 139,267 |
NONINTEREST INCOME: | ||||
Service charges and fees | 6,350 | 4,857 | 17,654 | 15,007 |
Loan servicing income | 1,368 | 1,319 | 3,572 | 4,223 |
Trust fees | 3,507 | 3,194 | 11,051 | 9,747 |
Brokerage and insurance commissions | 869 | 1,044 | 2,872 | 3,325 |
Securities gains, net (includes $1,807 and $825 of net security gains reclassified from accumulated other comprehensive income for the three months ended September 30, 2015 and 2014, respectively, and $9,270 and $2,460 of net security gains reclassified from accumulated other comprehensive income for nine months ended September 30, 2015 and 2014, respectively) | 1,767 | 825 | 9,230 | 2,460 |
Gain (loss) on trading account securities | 0 | 0 | 0 | (38) |
Net gains on sale of loans held for sale | 9,823 | 8,384 | 38,164 | 23,559 |
Income on bank owned life insurance | 372 | 371 | 1,355 | 1,073 |
Other noninterest income | 924 | 612 | 2,406 | 1,635 |
TOTAL NONINTEREST INCOME | 24,980 | 20,606 | 86,304 | 60,991 |
NONINTEREST EXPENSES: | ||||
Salaries and employee benefits | 37,033 | 33,546 | 110,522 | 98,428 |
Occupancy | 4,307 | 3,807 | 12,594 | 11,841 |
Furniture and equipment | 2,121 | 2,033 | 6,403 | 6,008 |
Professional fees | 5,251 | 4,429 | 16,544 | 13,169 |
FDIC insurance assessments | 1,018 | 888 | 2,873 | 2,848 |
Advertising | 1,327 | 1,383 | 3,841 | 4,082 |
Intangible assets amortization | 734 | 521 | 2,080 | 1,736 |
Other real estate and loan collection expenses | 496 | 215 | 1,714 | 1,785 |
Loss on sales/valuations of assets, net | 721 | 447 | 2,583 | 1,989 |
Other noninterest expenses | 8,988 | 7,386 | 25,938 | 19,966 |
TOTAL NONINTEREST EXPENSES | 61,996 | 54,655 | 185,092 | 161,852 |
INCOME BEFORE INCOME TAXES | 19,527 | 14,889 | 61,984 | 38,406 |
Income taxes (includes $451 and $93 of income tax expense reclassified from accumulated other comprehensive income for the three months ended September 30, 2015 and 2014, respectively, and $2,816 and $296 of income tax expense reclassified from accumulated other comprehensive income for the nine months ended September 30, 2015 and 2014, respectively) | 4,945 | 2,916 | 16,533 | 8,769 |
NET INCOME | 14,582 | 11,973 | 45,451 | 29,637 |
Preferred dividends and discount | (205) | (205) | (613) | (613) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 14,377 | $ 11,768 | $ 44,838 | $ 29,024 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.70 | $ 0.64 | $ 2.19 | $ 1.57 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | 0.69 | 0.63 | 2.16 | 1.55 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest expense related to derivatives reclassified from Accumulated Other Comprehensive Income | $ 3,549 | $ 3,741 | $ 12,117 | $ 11,084 |
Net security gains reclassified from Accumulated Other Comprehensive Income | 1,767 | 825 | 9,230 | 2,460 |
Income tax expense reclassified from Accumulated Other Comprehensive Income | 4,945 | 2,916 | 16,533 | 8,769 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Derivatives | ||||
Interest expense related to derivatives reclassified from Accumulated Other Comprehensive Income | 557 | 577 | 1,680 | 1,671 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | ||||
Net security gains reclassified from Accumulated Other Comprehensive Income | 1,807 | 825 | 9,270 | 2,460 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | ||||
Income tax expense reclassified from Accumulated Other Comprehensive Income | $ 451 | $ 93 | $ 2,816 | $ 296 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 14,582 | $ 11,973 | $ 45,451 | $ 29,637 |
Securities: | ||||
Net change in unrealized gain (loss) on securities | 2,202 | (144) | 10,916 | 30,538 |
Reclassification adjustment for net gains realized in net income | (1,807) | (825) | (9,270) | (2,460) |
Net change in non-credit related other than temporary impairment | 24 | 24 | 72 | 72 |
Income taxes | (169) | 372 | (667) | (11,110) |
Other comprehensive income (loss) on securities | 250 | (573) | 1,051 | 17,040 |
Derivatives used in cash flow hedging relationships: | ||||
Net change in unrealized gain (loss) on derivatives | (3,071) | 317 | (3,016) | (758) |
Reclassification adjustment for net loss on derivatives realized in net income | 557 | 577 | 1,680 | 1,671 |
Income taxes | 936 | (334) | 488 | (341) |
Other comprehensive income (loss) on cash flow hedges | (1,578) | 560 | (848) | 572 |
Other comprehensive income (loss) | (1,328) | (13) | 203 | 17,612 |
TOTAL COMPREHENSIVE INCOME | $ 13,254 | $ 11,960 | $ 45,654 | $ 47,249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 45,451 | $ 29,637 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,325 | 13,041 |
Provision for loan and lease losses | 10,526 | 11,635 |
Net amortization of premium on securities | 21,339 | 18,993 |
Securities gains, net | (9,230) | (2,460) |
Decrease in trading account securities | 0 | 1,801 |
Stock based compensation | 2,635 | 2,683 |
Write downs and losses on repossessed assets, net | 1,686 | 1,365 |
Loans originated for sale | (1,087,510) | (694,622) |
Proceeds on sales of loans held for sale | 1,083,285 | 665,837 |
Net gains on sale of loans held for sale | (27,102) | (17,604) |
(Increase) decrease in accrued interest receivable | 170 | (603) |
Increase in prepaid expenses | (1,021) | (857) |
Decrease in accrued interest payable | (177) | (1,176) |
Capitalization of servicing rights | (11,766) | (5,955) |
Write downs and losses on sales of assets, net | 897 | 624 |
Other, net | 8,137 | 6,772 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 53,645 | 29,111 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from the sale of securities available for sale | 877,077 | 699,830 |
Proceeds from the sale of other investments | 12,917 | 10,178 |
Proceeds from the sale of time deposits in other financial institutions | 2,925 | 0 |
Proceeds from the maturity of and principal paydowns on securities available for sale | 124,084 | 104,089 |
Proceeds from the maturity of and principal paydowns on securities held to maturity | 1,338 | 2,217 |
Proceeds from the maturity of and principal paydowns on time deposits in other financial institutions | 250 | 750 |
Proceeds from the maturity of and principal paydowns on other investments | 619 | 0 |
Purchase of securities available for sale | (774,657) | (543,407) |
Purchase of securities held to maturity | 0 | (20,944) |
Purchase of other investments | (9,833) | (8,849) |
Net increase in loans and leases | (225,356) | (317,604) |
Purchase of bank owned life insurance policies | (1,100) | 0 |
Capital expenditures | (4,982) | (5,738) |
Net cash and cash equivalents received in acquisition | (6,861) | 0 |
Proceeds from the sale of equipment | 1,108 | 175 |
Proceeds on sale of OREO and other repossessed assets | 6,328 | 14,578 |
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | 3,857 | (64,725) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in demand deposits and savings accounts | 118,311 | 100,466 |
Net decrease in time deposit accounts | (26,326) | (40,246) |
Net decrease in short-term borrowings | (25,901) | (31,451) |
Proceeds from short term FHLB advances | 276,100 | 230,000 |
Repayments of short term FHLB advances | (270,000) | (259,000) |
Proceeds from other borrowings | 29,000 | 5,000 |
Repayments of other borrowings | (134,803) | (20,596) |
Purchase of treasury stock | (2,856) | (625) |
Proceeds from issuance of common stock | 2,330 | 662 |
Excess tax benefits on exercised stock options | 671 | 119 |
Dividends paid | (6,794) | (6,149) |
NET CASH USED BY FINANCING ACTIVITIES | (40,268) | (21,820) |
Net increase (decrease) in cash and cash equivalents | 17,234 | (57,434) |
Cash and cash equivalents at beginning of year | 73,871 | 125,270 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 91,105 | |
Supplemental disclosures: | ||
Cash paid for income/franchise taxes | 7,305 | 2,632 |
Cash paid for interest | 24,690 | 26,925 |
Loans transferred to OREO | 5,206 | 6,528 |
Purchases of securities available for sale, accrued, not paid | 3,523 | 2,089 |
Stock consideration granted for acquisition | $ 53,052 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at beginning of period at Dec. 31, 2013 | $ 439,460 | $ 81,698 | $ 18,399 | $ 91,632 | $ 265,067 | $ (17,336) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 47,249 | 29,637 | 17,612 | ||||
Cash dividends declared: | |||||||
Preferred | (613) | (613) | |||||
Common | (5,536) | (5,536) | |||||
Purchase of shares of common stock | (625) | (625) | |||||
Issuance of shares of common stock | 781 | 78 | 78 | 625 | |||
Stock based compensation | 2,683 | 2,683 | |||||
Balance at end of period at Sep. 30, 2014 | 483,399 | 81,698 | 18,477 | 94,393 | 288,555 | 276 | 0 |
Balance at beginning of period at Dec. 31, 2014 | 496,317 | 81,698 | 18,511 | 95,816 | 298,764 | 1,528 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 45,654 | 45,451 | 203 | ||||
Cash dividends declared: | |||||||
Preferred | (613) | (613) | |||||
Common | (6,181) | (6,181) | |||||
Purchase of shares of common stock | (2,856) | (2,856) | |||||
Issuance of shares of common stock | 56,053 | 2,129 | 51,162 | 2,762 | |||
Stock based compensation | 2,635 | 2,635 | |||||
Balance at end of period at Sep. 30, 2015 | $ 591,009 | $ 81,698 | $ 20,640 | $ 149,613 | $ 337,421 | $ 1,731 | $ (94) |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Equity (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share preferred stock (in dollars per share) | $ 7.50 | $ 7.50 |
Cash dividends per share common stock (in dollars per share) | $ 0.30 | $ 0.30 |
Shares of common stock purchased | 54,389 | 24,042 |
Shares of common stock issued | 2,180,585 | 182,392 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2014, included in the Form 10-K of Heartland Financial USA, Inc. ("Heartland") filed with the Securities and Exchange Commission ("SEC") on March 13, 2015 . Accordingly, foot note disclosures which would substantially duplicate the disclosure contained in the audited consolidated financial statements have been omitted. The financial information of Heartland included herein has been prepared in accordance with U.S. generally accepted accounting principles for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments), that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the interim period ended September 30, 2015, are not necessarily indicative of the results expected for the year ending December 31, 2015. Earnings Per Share Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. Amounts used in the determination of basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014, are shown in the table below: Three Months Ended September 30, (Dollars and number of shares in thousands, except per share data) 2015 2014 Net income attributable to Heartland $ 14,582 $ 11,973 Preferred dividends and discount (205 ) (205 ) Net income available to common stockholders $ 14,377 $ 11,768 Weighted average common shares outstanding for basic earnings per share 20,620 18,469 Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units 273 284 Weighted average common shares for diluted earnings per share 20,893 18,753 Earnings per common share — basic $ 0.70 $ 0.64 Earnings per common share — diluted $ 0.69 $ 0.63 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 94 Nine Months Ended September 30, (Dollars and number of shares in thousands, except per share data) 2015 2014 Net income attributable to Heartland $ 45,451 $ 29,637 Preferred dividends and discount (613 ) (613 ) Net income available to common stockholders $ 44,838 $ 29,024 Weighted average common shares outstanding for basic earnings per share 20,483 18,456 Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units 269 287 Weighted average common shares for diluted earnings per share 20,752 18,743 Earnings per common share — basic $ 2.19 $ 1.57 Earnings per common share — diluted $ 2.16 $ 1.55 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 94 Stock-Based Compensation Heartland may grant, through its Nominating and Compensation Committee (the "Compensation Committee"), non-qualified and incentive stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units and cash incentive awards, under its 2012 Long-Term Incentive Plan (the "Plan"). The Plan, which was approved by stockholders in May 2012 and replaced Heartland's 2005 Long-Term Incentive Plan with respect to grants after such approval, reserved 268,390 shares of common stock at September 30, 2015, for issuance under future awards that may be granted under the Plan to employees and directors of, and service providers to, Heartland or its subsidiaries. Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, " Compensation-Stock Compensation " requires the measurement of the cost of employee services received in exchange for an award of equity instruments based upon the fair value of the award on the grant date. The cost of the award is based upon its fair value estimated on the date of grant and recognized in the consolidated statements of income over the vesting period of the award. The fair market value of restricted stock and restricted stock units is based on the fair value of the underlying shares of common stock on the date of grant. The fair value of stock options is estimated on the date of grant using the Black-Scholes model. The amount of tax benefit related to the exercise, vesting, and forfeiture of equity-based awards reflected in additional paid-in-capital, not taxes payable, was $671,000 and $ 119,000 during the nine months ended September 30, 2015 and 2014, respectively. Restricted Stock Units The Plan permits the Compensation Committee to grant restricted stock units ("RSUs"). On January 20, 2015, the Compensation Committee granted time-based RSUs with respect to 78,220 shares of common stock, and on March 11, 2014 , the Compensation Committee granted time-based RSUs with respect to 67,190 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 vest upon a "qualified retirement" (as defined in the RSU agreement), and the retiree is required to sign a non-solicitation and non-compete agreement as a condition to vesting. In addition to the time-based RSUs referenced in the preceding paragraph, the Compensation Committee granted performance-based RSUs with respect to 39,075 shares of common stock on March 10, 2015, and performance-based RSUs with respect to 32,645 shares of common stock on March 11, 2014 , to Heartland executives and subsidiary presidents. These performance-based RSUs vest based first on performance measures tied to Heartland's earnings and loans on December 31, 2015, and December 31, 2014, respectively, and then on time-based vesting conditions. For the grants awarded in 2015, the portion of the RSUs earned based on performance vest on December 31, 2017, and for the grants awarded in 2014 , the portion of the RSUs earned based on performance vest on December 31, 2016 , subject to employment on the respective vesting dates. The Compensation Committee also grants RSUs under the Plan to directors as part of their compensation, to new management level employees at commencement of employment, and to other employees and service providers as incentives. During the nine months ended September 30, 2015, and September 30, 2014, 22,648 and 33,304 RSUs, respectively, were granted to directors and new employees. A summary of the status of the RSUs as of September 30, 2015 and 2014, and changes during the nine months ended September 30, 2015 and 2014, follows: 2015 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at January 1 396,555 $ 21.48 353,070 $ 18.62 Granted 139,943 28.90 133,139 26.65 Vested (151,681 ) 17.98 (74,521 ) 16.95 Forfeited (15,636 ) 25.08 (7,483 ) 20.22 Outstanding at September 30 369,181 $ 25.56 404,205 $ 21.44 Total compensation costs recorded for RSUs were $2.6 million and $2.7 million for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 , there were $3.8 million of total unrecognized compensation costs related to the 2005 and 2012 Long-Term Incentive Plans for RSUs which are expected to be recognized through 2019. Options Although the Plan provides authority to the Compensation Committee to grant stock options, no options were granted during the first nine months of 2015 and 2014. Prior to 2009, options were typically granted annually with an expiration date ten years after the date of grant. Vesting was generally over a five -year service period with portions of a grant becoming exercisable at three years, four years, and five years after the date of grant. A summary of the status of the stock options as of September 30, 2015 and 2014, and changes during the nine months ended September 30, 2015 and 2014, follows: 2015 2014 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at January 1 215,851 $ 23.85 261,936 $ 23.60 Granted — — — — Exercised (81,401 ) 23.34 (9,750 ) 19.67 Forfeited (3,250 ) 23.51 (7,000 ) 26.62 Outstanding at September 30 131,200 $ 24.15 245,186 $ 23.67 Options exercisable at September 30 131,200 $ 24.15 245,186 $ 23.67 At September 30, 2015 , the vested options totale d 131,200 shares with a weighted average exercise price of $ 24.15 per share and a weighted average remaining contractual life of 1.50 years. The intrinsic value (the difference between the market price and the aggregate exercise price) for the vested options as of September 30, 2015 , was $1.6 million . The intrinsic value for the total of all options exercised during the nine months ended September 30, 2015 , was $829,000 . The exercise price of stock options granted is established by the Compensation Committee, but the exercise price for the stock options may not be less than the fair market value of the shares on the date that the option is granted or, if greater, the par value of a share of stock. Each option granted is exercisable in full at any time or from time to time, subject to vesting provisions, as determined by the Compensation Committee and as provided in the option agreement, but such time may not exceed ten years from the grant date. Cash received from options exercised was $ 1.9 million for the nine months ended September 30, 2015 , and $192,000 for the nine months ended September 30, 2014. Total compensation costs recorded for options were $0 for the nine months ended September 30, 2015 and 2014, respectively. There are no unrecorded compensation costs related to options at September 30, 2015. Subsequent Events Heartland has evaluated subsequent events through the filing date of this quarterly report on Form 10-Q with the SEC. On October 22, 2015, Heartland entered into a merger agreement with CIC Bancshares, Inc. parent company of Centennial Bank in Denver, Colorado. See Note 2, "Acquisitions," for further details of this acquisition. On October 7, 2015, Heartland reached a buyout agreement with the FDIC related to the loss share agreements. See Note 4, "Loans and Leases," for further details. Effect of New Financial Accounting Standards 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 benefit 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 31, 2014, and should be applied retrospectively to all periods presented. Heartland elected to use the proportional amortization method for equity investments in qualified affordable housing projects that meet the conditions specified in ASU-2014-01. Heartland adopted this standard on January 1, 2015, 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 2014-04, " 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 adopted this standard on January 1, 2015, and the adoption did not have a material impact on the results of operations, financial position, and liquidity. As of September 30, 2015, Heartland had not received possession of any residential real estate properties that meet the disclosure requirements. 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, 2017 (including interim reporting periods within those periods). Early application is not permitted. Heartland intends to adopt the accounting standard during the first quarter of 2018, 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: (1) the loan has a government guarantee that is not separate from the loan before foreclosure, and (2) 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 (3) 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 adopted this standard on January 1, 2015, and the adoption did not have an 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. In April 2015, the FASB issued ASU 2015-03, " Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. " The amendment intends to simplify the presentation of debt issuance costs and more closely align the presentation of debt issuance costs under U.S. GAAP with the presentation under comparable International Financial Reporting Standards. The cost of issuing debt will no longer be recorded as a separate asset, except when incurred before receipt of the funding from the associated debt liability. Debt issuance costs related to a recognized debt liability are to be presented on the balance sheet as a direct reduction from the debt liability, similar to the presentation of debt premiums or discounts. The costs will continue to be amortized to interest expense using the effective interest method. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. The ASU requires retrospective application to all prior periods presented in the financial statements. Heartland adopted this standard effective March 31, 2015, at which time $550,000 was reclassified from other assets to other borrowings on the consolidated balance sheet for all periods presented. In April 2015, the FASB issued ASU 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software." The amendment intends to provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer's accounting for service contracts. As a result, all software licenses within the scope of this guidance will be accounted for consistently with other licenses of intangible assets. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities can elect to adopt the standard either retrospectively or prospectively to all cloud computing arrangements entered into or materially modified after the adoption date. Early adoption is permitted. Heartland intends to adopt this standard on January 1, 2016 and believes the adoption will not have a material impact on the results of operations, financial position, and liquidity. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." The amendment eliminates the requirement of Topic 805, Business Combinations, to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised. Additional disclosures are required about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted if financial statements have not been issued. Heartland adopted this standard effective September 30, 2015. The adoption of this standard did not have a material impact on the results of operations, financial position, and liquidity. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS CIC Bancshares, Inc. On October 22, 2015, Heartland entered into a merger agreement with CIC Bancshares, Inc., parent company of Centennial Bank, headquartered in Denver, Colorado. Under the agreement, Heartland will acquire CIC Bancshares, Inc., in a transaction valued at approximately $83.5 million , of which approximately 20% would be payable in cash and approximately 80% would be payable by issuance of Heartland common stock. Simultaneous with the closing of the transaction, Centennial Bank will be merged into Heartland's Summit Bank & Trust, with the resulting institution operating under the Centennial Bank name. Centennial Bank had assets of approximately $730.0 million as of September 30, 2015, including loans of approximately $556.0 million , and deposits of approximately $645.0 million . The transaction is subject to approvals by shareholders of CIC Bancshares, Inc., and bank regulatory authorities, and is expected to close during the first quarter of 2016. Premier Valley Bank On May 28, 2015, Heartland entered into a merger agreement with Premier Valley Bank in Fresno, California. Under the terms of the agreement, Premier Valley Bank shareholders will receive approximately $95.0 million or $7.73 per share of common stock in the merger, subject to adjustment if tangible equity is less than $58.8 million , and may elect to receive this payment in shares of Heartland common stock or cash, subject to proration so that 70% of the total payment is in Heartland common stock and 30% in cash. As of September 30, 2015, Premier Valley Bank had assets of approximately $683.0 million , loans of approximately $414.0 million , and deposits of approximately $598.0 million . Upon closing of the transaction, Premier Valley Bank will become a wholly-owned subsidiary of Heartland and will continue to operate under its current name and management team as Heartland's tenth state-chartered bank. First Scottsdale Bank, N.A. On September 11, 2015, Heartland completed the purchase of First Scottsdale Bank, N.A., in Scottsdale, Arizona, in an all cash transaction valued at approximately $17.7 million . Simultaneous with the closing of the transaction, First Scottsdale Bank, N.A., merged into Heartland's Arizona Bank & Trust subsidiary. The transaction included, at fair value, total assets of $83.7 million , loans of $54.7 million , and deposits of $65.9 million on the acquisition date. Community Bancorporation of New Mexico, Inc. On August 21, 2015, Heartland acquired Community Bancorporation of New Mexico, Inc., parent company of Community Bank in Santa Fe, New Mexico, in an all cash transaction valued at approximately $11.1 million . Simultaneous with the closing of the transaction, Community Bank merged into Heartland's New Mexico Bank & Trust subsidiary. The transaction included, at fair value, total assets of $166.5 million , loans of $99.5 million , and deposits of $147.4 million on the acquisition date. Also included in this transaction is one bank building with a fair value of $3.4 million that Heartland intends to sell. The building is classified as premises, furniture and equipment held for sale on the consolidated balance sheet. Community Banc-Corp of Sheboygan, Inc. On January 16, 2015, Heartland completed the acquisition of Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin. Under the terms of the agreement, 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. The transaction included, at fair value, total assets of $506.8 million , including loans of $395.0 million , and deposits of $433.9 million . Simultaneous with the close of the transaction, Community Bank & Trust merged into Heartland’s Wisconsin Bank & Trust subsidiary. The transaction was a tax-free reorganization with respect to the stock consideration received by the stockholders of Community Banc-Corp of Sheboygan, Inc. The assets and liabilities of Community Banc-Corp of Sheboygan, Inc. were recorded on the consolidated balance sheet at the estimated fair value on the acquisition date. The following table represents, in thousands, the amounts recorded on the consolidated balance sheet as of January 16, 2015: As of January 16, 2015 Fair value of consideration paid Common Stock $ 53,052 Cash 6 Total consideration paid 53,058 Fair value of assets acquired Cash and due from banks 7,109 Securities: Securities available for sale 52,976 Other securities 1,284 Loans held for sale 728 Loans held to maturity 395,007 Premises, furniture and equipment, net 13,954 Other real estate, net 346 Other intangible assets, net 10,295 Other assets 25,066 Total assets 506,765 Fair value of liabilities assumed Deposits 433,919 Short term borrowings 24,836 Other borrowings 6,097 Other liabilities 7,434 Total liabilities assumed 472,286 Fair value of net assets acquired 34,479 Goodwill resulting from acquisition $ 18,579 Heartland recognized goodwill of $18.6 million in conjunction with the acquisition of Community Banc-Corp of Sheboygan, 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. See Note 6 for further information on goodwill. Pro Forma Information: The following pro forma information presents the results of operations for the years ended December 31, 2014, and December 31, 2013, as if the Community Banc-Corp of Sheboygan, Inc. acquisition occurred on January 1, 2013: (Dollars in thousands, except per share data) For the Years Ended December 31, 2014 December 31, 2013 Net interest income $ 220,358 $ 179,001 Net income $ 44,710 $ 42,105 Basic earnings per share $ 2.19 $ 2.20 Diluted earnings per share $ 2.16 $ 2.17 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 on January 1, 2013, 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 $1.7 million of pre-tax merger related expenses during 2014 and 2015. The merger expenses are reflected on the consolidated statement of income for the applicable period and are reported primarily in the categories of salaries and employee benefits, professional fees and other noninterest expenses. 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 $5.8 million . |
Securities
Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2015 , and December 31, 2014 , are summarized in the table below, in thousands: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2015 U.S. government corporations and agencies $ 26,584 $ 436 $ — $ 27,020 Mortgage-backed securities 1,001,955 13,210 (8,816 ) 1,006,349 Obligations of states and political subdivisions 211,194 3,946 (589 ) 214,551 Corporate debt securities 740 — (160 ) 580 Total debt securities 1,240,473 17,592 (9,565 ) 1,248,500 Equity securities 13,134 53 — 13,187 Total $ 1,253,607 $ 17,645 $ (9,565 ) $ 1,261,687 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 Corporate debt securities — — — — 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 At both September 30, 2015 , and December 31, 2014 , the amortized cost of the available for sale securities is net of $184,000 of credit related other-than-temporary impairment ("OTTI"). The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2015 , and December 31, 2014 , are summarized in the table below, in thousands: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2015 Mortgage-backed securities $ 5,482 $ 178 $ (945 ) $ 4,715 Obligations of states and political subdivisions 276,718 14,048 (859 ) 289,907 Total $ 282,200 $ 14,226 $ (1,804 ) $ 294,622 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 At September 30, 2015 , the amortized cost of the held to maturity securities is net of $ 797,000 of credit related OTTI and $ 351,000 of non-credit related OTTI. At December 31, 2014 , the amortized cost of the held to maturity securities was net of $ 797,000 of credit related OTTI and $ 422,000 of non-credit related OTTI. Approximately 80% of Heartland's mortgage-backed securities are issuances of government-sponsored enterprises. The amortized cost and estimated fair value of debt securities available for sale at September 30, 2015 , by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. Amortized Cost Estimated Fair Value Due in 1 year or less $ 3,831 $ 3,839 Due in 1 to 5 years 40,492 40,749 Due in 5 to 10 years 63,734 64,596 Due after 10 years 130,461 132,967 Total debt securities 238,518 242,151 Mortgage-backed securities 1,001,955 1,006,349 Equity securities 13,134 13,187 Total investment securities $ 1,253,607 $ 1,261,687 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2015 , by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. Amortized Cost Estimated Fair Value Due in 1 year or less $ 5,290 $ 5,367 Due in 1 to 5 years 13,881 14,620 Due in 5 to 10 years 59,706 62,884 Due after 10 years 197,841 207,036 Total debt securities 276,718 289,907 Mortgage-backed securities 5,482 4,715 Total investment securities $ 282,200 $ 294,622 Gross gains and losses realized related to the sales of securities available for sale for the three- and nine-month periods ended September 30, 2015 and 2014, are summarized as follows, in thousands: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales $ 351,050 $ 189,939 $ 877,077 $ 699,830 Gross security gains 2,416 1,101 10,857 4,547 Gross security losses 609 276 1,587 2,087 The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 2015 , and December 31, 2014 . 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 w as September 30, 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 U.S. government corporations and agencies $ — $ — $ — $ — $ — $ — Mortgage-backed securities 381,863 (7,239 ) 110,908 (1,577 ) 492,771 (8,816 ) Obligations of states and political subdivisions 32,527 (442 ) 9,892 (147 ) 42,419 (589 ) Corporate debt securities 580 (160 ) — — 580 (160 ) Total temporarily impaired securities $ 414,970 $ (7,841 ) $ 120,800 $ (1,724 ) $ 535,770 $ (9,565 ) 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 ) Corporate debt securities — — — — — — Total temporarily impaired securities $ 334,291 $ (7,412 ) $ 326,585 $ (4,899 ) $ 660,876 $ (12,311 ) Securities held to maturity Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 Mortgage-backed securities $ — $ — $ 1,832 $ (945 ) $ 1,832 $ (945 ) Obligations of states and political subdivisions 11,258 (70 ) 18,220 (789 ) 29,478 (859 ) Total temporarily impaired securities $ 11,258 $ (70 ) $ 20,052 $ (1,734 ) $ 31,310 $ (1,804 ) December 31, 2014 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 ) 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. The remaining unrealized losses on Heartland's mortgage-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities and not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, these investments are not considered other-than-temporarily impaired. Unrealized losses on Heartland's obligations of states and political subdivisions are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the credit quality and financial stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or 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 September 30, 2015 , or December 31, 2014 . The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income ("AOCI") for the same securities, in thousands: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Recorded as part of gross realized losses: Credit related OTTI $ — $ — $ — $ — Intent to sell OTTI — — — — Total recorded as part of gross realized losses — — — — Recorded directly to AOCI for non-credit related impairment: Residential mortgage backed securities — — — — Accretion of non-credit related impairment (24 ) (24 ) (72 ) (72 ) Total changes to AOCI for non-credit related impairment (24 ) (24 ) (72 ) (72 ) Total OTTI losses (accretion) recorded on debt securities, net $ (24 ) $ (24 ) $ (72 ) $ (72 ) Heartland has not experienced any OTTI writedowns since the initial impairment charge in 2012. Included in other securities at September 30, 2015, and December 31, 2014, were shares of stock in each Federal Home Loan Bank (the "FHLB") of Des Moines, Chicago, Dallas, San Francisco and Topeka at an amortized cost of $ 13.3 million and $ 14.3 million , respectively. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans and Leases | LOANS AND LEASES Loans and leases as of September 30, 2015 , and December 31, 2014 , were as follows, in thousands: September 30, 2015 December 31, 2014 Loans and leases receivable held to maturity: Commercial $ 1,240,956 $ 1,036,080 Commercial real estate 2,062,142 1,707,060 Agricultural and agricultural real estate 469,381 423,827 Residential real estate 491,667 380,341 Consumer 379,903 330,555 Gross loans and leases receivable held to maturity 4,644,049 3,877,863 Unearned discount (478 ) (90 ) Deferred loan fees (1,048 ) (1,028 ) Total net loans and leases receivable held to maturity 4,642,523 3,876,745 Loans covered under loss share agreements: Commercial and commercial real estate — 54 Agricultural and agricultural real estate — — Residential real estate — 1,204 Consumer — — Total loans covered under loss share agreements — 1,258 Allowance for loan and lease losses (47,105 ) (41,449 ) Loans and leases receivable, net $ 4,595,418 $ 3,836,554 Heartland has certain lending policies and procedures in place that are designed to provide for an acceptable level of credit risk. The board of directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management and the board with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. Diversification in the loan portfolio is also a means of managing risk associated with fluctuations in economic conditions. The commercial and commercial real estate loan portfolio includes a wide range of business loans, including lines of credit for working capital and operational purposes and term loans for the acquisition of equipment and real estate. Although most loans are made on a secured basis, loans may be made on an unsecured basis where warranted by the overall financial condition of the borrower. Terms of commercial business loans generally range from one to five years. Commercial loans and leases are primarily made based on the identified cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The collateral that Heartland requires for most of these loans and leases is based upon the discounted market value of the collateral. The primary repayment risks of commercial loans and leases are that the cash flow of the borrowers may be unpredictable, and the collateral securing these loans may fluctuate in value. Heartland seeks to minimize these risks in a variety of ways. The underwriting analysis includes credit verification, analysis of global cash flows, appraisals and a review of the financial condition of the borrower. Personal guarantees are frequently required as a tertiary form of repayment. In addition, when underwriting loans for commercial real estate, careful consideration is given to the property's operating history, future operating projections, current and projected occupancy, location and physical condition. Heartland also utilizes government guaranteed lending through the U.S. Small Business Administration and the U.S. Department of Agriculture's 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. As of September 30, 2015, Heartland had $950,000 of loans secured by residential real estate property that were in the process of foreclosure. Consumer lending includes motor vehicle, home improvement, home equity and small personal credit lines. Consumer loans typically have shorter terms, lower balances, higher yields and higher risks of default than one-to-four-family residential mortgage loans. Consumer loan collections are dependent on the borrower's continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate. Heartland's consumer finance subsidiaries, Citizens Finance Co. and Citizens Finance of Illinois Co., typically lend to borrowers with past credit problems or limited credit histories and comprises approximately 20% of Heartland's total consumer loan portfolio. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Heartland’s policy is to discontinue the accrual of interest income on any loan or lease when, in the opinion of management, there is a reasonable doubt as to the timely collection of the interest and principal, normally when a loan or lease is 90 days past due. When interest accruals are deemed uncollectible, interest credited to income in the current year is reversed and interest accrued in prior years is charged to the allowance for loan and lease losses. Nonaccrual loans and leases are returned to an accrual status when, in the opinion of management, the financial position of the borrower indicates that there is no longer any reasonable doubt as to the timely payment of interest and principal. Under Heartland’s credit practices, a loan is impaired when, based on current information and events, it is probable that Heartland will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loan impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except where more practical, at the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent. The following table shows the balance in the allowance for loan and lease losses at September 30, 2015 , and December 31, 2014 , and the related loan balances, disaggregated on the basis of impairment methodology, in thousands. Loans evaluated under ASC 310-10-35 include loans on nonaccrual status and troubled debt restructurings, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics. All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no significant changes to the accounting for the allowance for loan and lease losses policy during 2015. Allowance For Loan and Lease Losses Gross Loans and Leases Receivable Held to Maturity Ending Balance Under ASC 310-10-35 Ending Balance Under ASC 450-20 Total Ending Balance Evaluated for Impairment Under ASC 310-10-35 Ending Balance Evaluated for Impairment Under ASC 450-20 Total September 30, 2015 Commercial $ 388 $ 13,522 $ 13,910 $ 8,386 $ 1,232,570 $ 1,240,956 Commercial real estate 645 17,441 18,086 43,682 2,018,460 2,062,142 Agricultural and agricultural real estate 40 3,899 3,939 5,916 463,465 469,381 Residential real estate 372 3,474 3,846 14,024 477,643 491,667 Consumer 1,057 6,267 7,324 4,925 374,978 379,903 Total $ 2,502 $ 44,603 $ 47,105 $ 76,933 $ 4,567,116 $ 4,644,049 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 The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans not covered under loss share agreements at September 30, 2015 , and December 31, 2014 , in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at September 30, 2015 , and December 31, 2014 . September 30, 2015 December 31, 2014 Nonaccrual loans $ 30,965 $ 24,205 Nonaccrual troubled debt restructured loans 1,612 865 Total nonaccrual loans $ 32,577 $ 25,070 Accruing loans past due 90 days or more $ 1,181 $ — Performing troubled debt restructured loans $ 10,154 $ 12,133 The following table provides information on troubled debt restructured loans that were modified during the three and nine months ended September 30, 2015 , and September 30, 2014, dollars in thousands: Three Months Ended 2015 2014 Number Pre- Post- Number Pre- Post- Commercial — $ — $ — — $ — $ — Commercial real estate — — — — — — Total commercial and commercial real estate — — — — — — Agricultural and agricultural real estate — — — 1 60 60 Residential real estate 1 55 55 — — — Consumer — — — — — — Total 1 $ 55 $ 55 1 $ 60 $ 60 Nine Months Ended September 30, 2015 2014 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Commercial 1 $ 830 $ 830 — $ — $ — Commercial real estate 1 3,992 3,992 1 298 298 Total commercial and commercial real estate 2 4,822 4,822 1 298 298 Agricultural and agricultural real estate 1 311 311 3 3,417 3,417 Residential real estate 1 55 55 1 38 38 Consumer — — — — — — Total 4 $ 5,188 $ 5,188 5 $ 3,753 $ 3,753 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. At September 30, 2015, there were no commitments to extend credit to any of the borrowers with an existing troubled debt restructuring. The following tables provide information on troubled debt restructured loans for which there was a payment default during the three months and nine months ended September 30, 2015, and September 30, 2014, in thousands, that had been modified during the twelve-month period prior to default: With Payment Defaults During the Following Periods Three Months Ended 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial — $ — — $ — Commercial real estate 1 814 — — Total commercial and commercial real estate 1 814 — — Agricultural and agricultural real estate — — 1 60 Residential real estate — — — — Consumer — — — — Total 1 $ 814 1 $ 60 With Payment Defaults During the Following Periods Nine Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial — $ — — $ — Commercial real estate 1 814 — — Total commercial and commercial real estate 1 814 — — Agricultural and agricultural real estate — — 1 60 Residential real estate — — — — Consumer — — — — Total 1 $ 814 1 $ 60 Heartland's internal rating system is a series of grades reflecting management's risk assessment, based on its analysis of the borrower's financial condition. The "pass" category consists of all loans that are not in the "nonpass" category, categorized into a range of loan grades that reflect increasing, though still acceptable, risk. Movement of risk through the various grade levels in the pass category is monitored for early identification of credit deterioration. The "nonpass" category consists of special mention, substandard, doubtful and loss loans. The "special mention" rating is attached to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. These credits are closely monitored for improvement or deterioration. The "substandard" rating is assigned to loans that are inadequately protected by the current sound net worth and paying capacity of the borrower and may be further at risk due to deterioration in the value of collateral pledged. Well-defined weaknesses jeopardize liquidation of the debt. These loans are still considered collectible, however, a distinct possibility exists that Heartland will sustain some loss if deficiencies are not corrected. Substandard loans may exhibit some or all of the following weaknesses: deteriorating trends, lack of earnings, inadequate debt service capacity, excessive debt and/or lack of liquidity. The "doubtful" rating is assigned to loans where identified weaknesses make collection or liquidation in full, on the basis of existing facts, conditions and values, highly questionable and improbable. These borrowers are usually in default, lack liquidity and capital, as well as, resources necessary to remain an operating entity. Specific pending events, such as capital injections, liquidations or perfection of liens on additional collateral, may strengthen the credit, thus deferring classification of the loan as loss until exact status can be determined. The "loss" rating is assigned to loans considered uncollectible. As of September 30, 2015 , 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 September 30, 2015 , and December 31, 2014 , in thousands: Pass Nonpass Total September 30, 2015 Commercial $ 1,093,853 $ 147,103 $ 1,240,956 Commercial real estate 1,878,579 183,563 2,062,142 Total commercial and commercial real estate 2,972,432 330,666 3,303,098 Agricultural and agricultural real estate 443,460 25,921 469,381 Residential real estate 470,332 21,335 491,667 Consumer 371,268 8,635 379,903 Total gross loans and leases receivable held to maturity $ 4,257,492 $ 386,557 $ 4,644,049 December 31, 2014 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 The nonpass category in the table above is comprised of approximately 69% special mention and 31% substandard as of September 30, 2015 . The percent of nonpass loans on nonaccrual status as of September 30, 2015 , was 8% . As of December 31, 2014 , the nonpass category in the table above was comprised of approximately 66% special mention and 34% substandard. The percent of nonpass loans on nonaccrual status as of December 31, 2014 , was 9% . Loans delinquent 30 to 89 days as a percent of total loans were 0.40% at September 30, 2015, compared to 0 .21% at December 31, 2014. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. All impaired loans are reviewed at least annually. The following table sets forth information regarding Heartland's accruing and nonaccrual loans and leases not covered by loss share agreements at September 30, 2015 , and December 31, 2014 , in thousands: Accruing Loans and Leases 30-59 Days Past Due 60-89 Days 90 Days or More Past Due Total Past Due Current Nonaccrual Total Loans and Leases September 30, 2015 Commercial $ 1,729 $ 21 $ 291 $ 2,041 $ 1,235,294 $ 3,621 $ 1,240,956 Commercial real estate 6,115 1,475 890 8,480 2,040,177 13,485 2,062,142 Total commercial and commercial real estate 7,844 1,496 1,181 10,521 3,275,471 17,106 3,303,098 Agricultural and agricultural real estate 223 84 — 307 466,607 2,467 469,381 Residential real estate 2,118 535 — 2,653 478,464 10,550 491,667 Consumer 4,710 1,446 — 6,156 371,293 2,454 379,903 Total gross loans and leases receivable held to maturity $ 14,895 $ 3,561 $ 1,181 $ 19,637 $ 4,591,835 $ 32,577 $ 4,644,049 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 The majority of Heartland's impaired loans are those that are nonaccrual or have had their terms restructured in a troubled debt restructuring. The following tables present, for impaired loans not covered by loss share agreements and by category of loan, the unpaid contractual balance at September 30, 2015 , and December 31, 2014 ; the outstanding loan balance recorded on the consolidated balance sheets at September 30, 2015 , and December 31, 2014 ; any related allowance recorded for those loans as of September 30, 2015 , and December 31, 2014 ; the average outstanding loan balance recorded on the consolidated balance sheets during the nine months ended September 30, 2015 , and year ended December 31, 2014 ; and the interest income recognized on the impaired loans during the nine months ended September 30, 2015 , and year ended December 31, 2014 , in thousands: Unpaid Contractual Balance Loan Balance Related Allowance Recorded Quarter-to- Date Avg. Loan Balance Quarter-to- Date Interest Income Recognized Year-to- Date Avg. Loan Balance Year-to- Date Interest Income Recognized September 30, 2015 Impaired loans with a related allowance: Commercial $ 1,200 $ 948 $ 388 $ 394 $ 3 $ 383 $ 9 Commercial real estate 2,384 2,384 645 1,243 10 2,028 20 Total commercial and commercial real estate 3,584 3,332 1,033 1,637 13 2,411 29 Agricultural and agricultural real estate 3,196 3,196 40 3,281 85 3,058 123 Residential real estate 2,637 2,469 372 2,860 7 2,619 16 Consumer 3,036 3,027 1,057 3,136 5 2,845 16 Total impaired loans with a related allowance $ 12,453 $ 12,024 $ 2,502 $ 10,914 $ 110 $ 10,933 $ 184 Impaired loans without a related allowance: Commercial $ 7,518 $ 7,438 $ — $ 9,759 $ 100 $ 7,050 $ 274 Commercial real estate 44,758 41,298 — 42,476 397 36,149 1,055 Total commercial and commercial real estate 52,276 48,736 — 52,235 497 43,199 1,329 Agricultural and agricultural real estate 2,720 2,720 — 2,197 — 2,106 9 Residential real estate 11,593 11,555 — 10,305 15 8,936 85 Consumer 1,898 1,898 — 2,025 4 2,431 27 Total impaired loans without a related allowance $ 68,487 $ 64,909 $ — $ 66,762 $ 516 $ 56,672 $ 1,450 Total impaired loans held to maturity: Commercial $ 8,718 $ 8,386 $ 388 $ 10,153 $ 103 $ 7,433 $ 283 Commercial real estate 47,142 43,682 645 43,719 407 38,177 1,075 Total commercial and commercial real estate 55,860 52,068 1,033 53,872 510 45,610 1,358 Agricultural and agricultural real estate 5,916 5,916 40 5,478 85 5,164 132 Residential real estate 14,230 14,024 372 13,165 22 11,555 101 Consumer 4,934 4,925 1,057 5,161 9 5,276 43 Total impaired loans held to maturity $ 80,940 $ 76,933 $ 2,502 $ 77,676 $ 626 $ 67,605 $ 1,634 Unpaid Contractual Balance Loan Balance Related Allowance Recorded Year-to- Date Avg. Loan Balance Year-to- Date Interest Income 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 impaired loans with a related allowance $ 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 impaired loans without a related allowance $ 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 On January 16, 2015, Heartland acquired Community Banc-Corp of Sheboygan, Inc., parent company of Community Bank & Trust in Sheboygan, Wisconsin. As of January 16, 2015, Community Bank & Trust had loans of $413.4 million , and the estimated fair value of the loans acquired was $395.0 million . On August 21, 2015, Heartland acquired Community Bancorporation of New Mexico, Inc., parent company of Community Bank of Santa Fe, New Mexico. As of August 21, 2015, Community Bank had loans of $103.7 million , and the estimated fair value of the loans acquired was $99.5 million . On September 11, 2015, Heartland acquired First Scottsdale Bank, N.A. in Scottsdale, Arizona. As of September 11, 2015, First Scottsdale Bank, N.A. had loans of $56.5 million , and the estimated fair value of the loans acquired was $54.7 million . The acquisitions of Community Banc-Corp of Sheboygan, Inc., Community Bancorporation of New Mexico, Inc., and First Scottsdale Bank, N.A. were accounted for under the acquisition method of accounting in accordance with ASC 805, “ Business Combinations. ” Purchased loans acquired in a business combination 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 acquired with the acquisitions in 2015 at September 30, 2015 , consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: September 30, 2015 Impaired Non Impaired Total Loans Commercial $ — $ 93,304 $ 93,304 Commercial real estate 6,561 270,229 276,790 Agricultural and agricultural real estate — 2,788 2,788 Residential real estate — 49,816 49,816 Consumer loans — 28,056 28,056 Total Loans $ 6,561 $ 444,193 $ 450,754 On the acquisition dates, the preliminary estimate of the contractually required payments receivable for all loans with evidence of credit deterioration since origination acquired in the acquisitions was $14.7 million and the estimated fair value of the loans was $9.3 million . At September 30, 2015 , 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. At September 30, 2015, there was an allowance for loan and lease losses of $ 116,000 related to these ASC 310-30 loans. On the acquisition dates, the preliminary estimate of the contractually required payments receivable for all nonimpaired loans acquired in the acquisitions was $558.4 million and the estimated fair value of the loans was $539.9 million . On July 2, 2009, Heartland acquired all deposits of The Elizabeth State Bank in Elizabeth, Illinois through its subsidiary Galena State Bank & Trust Co., which merged into Illinois Bank & Trust, 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 with an estimated fair value of $37.8 million . The acquired loans and other real estate owned were covered by a loss share agreement for non-residential loans and a loss share agreement for residential real estate. The loss sharing agreement for non-residential loans expired on October 1, 2014. The remaining residential real estate loans covered under the loss share agreement were not material at September 30, 2015. On October 7, 2015, Heartland reached a buy-out agreement with the FDIC on the residential real estate loan portfolio, and as a result Heartland no longer has any loans covered under loss share agreements. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2015 | |
Allowance for Loan and Lease Losses [Abstract] | |
Allowance for Loan and Lease Losses | ALLOWANCE FOR LOAN AND LEASE LOSSES Changes in the allowance for loan and lease losses for the three and nine months ended September 30, 2015 , and September 30, 2014, were as follows, in thousands: Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at June 30, 2015 $ 13,064 $ 17,608 $ 3,676 $ 4,099 $ 7,167 $ — $ 45,614 Charge-offs (869 ) (376 ) — (13 ) (1,181 ) — (2,439 ) Recoveries 87 357 5 71 229 — 749 Provision 1,628 497 258 (311 ) 1,109 — 3,181 Balance at September 30, 2015 $ 13,910 $ 18,086 $ 3,939 $ 3,846 $ 7,324 $ — $ 47,105 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at December 31, 2014 $ 11,909 $ 15,898 $ 3,295 $ 3,741 $ 6,606 $ — $ 41,449 Charge-offs (1,825 ) (1,080 ) (551 ) (126 ) (3,595 ) — (7,177 ) Recoveries 518 853 29 178 729 — 2,307 Provision 3,308 2,415 1,166 53 3,584 — 10,526 Balance at September 30, 2015 $ 13,910 $ 18,086 $ 3,939 $ 3,846 $ 7,324 $ — $ 47,105 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at June 30, 2014 $ 11,927 $ 14,680 $ 2,788 $ 3,815 $ 7,516 $ 166 $ 40,892 Charge-offs (875 ) (295 ) (338 ) (21 ) (1,120 ) — (2,649 ) Recoveries 145 539 5 29 184 — 902 Provision 158 1,221 661 (200 ) 673 40 2,553 Balance at September 30, 2014 $ 11,355 $ 16,145 $ 3,116 $ 3,623 $ 7,253 $ 206 $ 41,698 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at December 31, 2013 $ 13,099 $ 14,152 $ 2,992 $ 3,720 $ 7,722 $ — $ 41,685 Charge-offs (7,940 ) (1,379 ) (1,974 ) (225 ) (3,189 ) — (14,707 ) Recoveries 552 1,833 9 85 606 — 3,085 Provision 5,644 1,539 2,089 43 2,114 206 11,635 Balance at September 30, 2014 $ 11,355 $ 16,145 $ 3,116 $ 3,623 $ 7,253 $ 206 $ 41,698 Management allocates the allowance for loan and lease losses by pools of risk within each loan portfolio. The allocation of the allowance for loan and lease losses by loan portfolio is made for analytical purposes and is not necessarily indicative of the trend of future loan and lease losses in any particular category. The total allowance for loan and lease losses is available to absorb losses from any segment of the loan portfolio. |
Goodwill, Core Deposit Premium
Goodwill, Core Deposit Premium and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Core Deposit Premium and Other Intangible Assets | GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS Heartland had goodwill of $ 56.8 million at September 30, 2015 , and $35.6 million December 31, 2014 . Heartland conducts its annual internal assessment of the goodwill both collectively and at its subsidiaries as of September 30. Heartland recorded $ 18.6 million of goodwill in connection with the acquisition of Community Banc-Corp of Sheboygan, Inc., the parent company of Community Bank & Trust, based in Sheboygan, Wisconsin on January 16, 2015. The goodwill associated with this transaction is not deductible for tax purposes. As part of this acquisition, Heartland recognized core deposit intangibles of $ 6.0 million that are expected to be amortized over a period of 10 years on an accelerated basis. The core deposit intangibles associated with this transaction are not deductible for tax purposes. In addition, Heartland recognized commercial servicing rights of $ 4.3 million . Heartland recorded $213,000 of goodwill in connection with the acquisition of Community Bancorporation of New Mexico, Inc., parent company of Community Bank in Santa Fe, New Mexico, based in Santa Fe, New Mexico on August 21, 2015. The goodwill associated with this transaction is not deductible for tax purposes. As part of this acquisition, Heartland also recognized core deposit intangibles of $1.7 million that are expected to be amortized over a period of 10 years on an accelerated basis. The core deposit intangibles associated with this transaction are not deductible for tax purposes. Heartland recorded $2.5 million of goodwill in connection with the acquisition of First Scottsdale Bank, N.A., based in Scottsdale, Arizona on September 11, 2015. The goodwill associated with this transaction is not deductible for tax purposes. As part of this acquisition, Heartland also recognized core deposit intangibles of $357,000 that are expected to be amortized over a period of 10 years on an accelerated basis. The core deposit intangibles associated with this transaction are not deductible for tax purposes. Goodwill related to the Community Banc-Corp of Sheboygan, Inc., Community Bancorporation of New Mexico, Inc., and First Scottsdale Bank, N.A., resulted from expected operational synergies, increased market presence, cross-selling opportunities, and expanded business lines. Other intangible assets consist of core deposit intangibles, mortgage servicing rights, customer relationship intangible, and commercial servicing rights. The gross carrying amount of other intangible assets and the associated accumulated amortization at September 30, 2015 , and December 31, 2014 , are presented in the table below, in thousands: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangibles $ 29,138 $ 14,572 $ 14,566 $ 21,069 $ 12,525 $ 8,544 Mortgage servicing rights 44,166 14,566 29,600 37,825 12,841 24,984 Customer relationship intangible 1,177 805 372 1,177 773 404 Commercial servicing rights 4,959 802 4,157 — — — Total $ 79,440 $ 30,745 $ 48,695 $ 60,071 $ 26,139 $ 33,932 The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Deposit Intangibles Mortgage Servicing Rights Customer Relationship Intangible Commercial Servicing Rights Total Three months ending December 31, 2015 $ 755 $ 2,087 $ 11 $ 221 $ 3,074 Year ending December 31, 2016 2,772 6,878 41 866 10,557 2017 2,452 5,896 40 820 9,208 2018 2,169 4,913 39 731 7,852 2019 1,886 3,930 38 563 6,417 2020 1,619 2,948 37 364 4,968 Thereafter 2,913 2,948 166 592 6,619 Total $ 14,566 $ 29,600 $ 372 $ 4,157 $ 48,695 Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of September 30, 2015 . Heartland's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were $3.96 billion and $ 3.50 billion as of September 30, 2015 , and December 31, 2014 , respectively. The fair value of Heartland's mortgage servicing rights was estimated at $40.2 million at September 30, 2015 , and $34.2 million at December 31, 2014 . 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. 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 10.79% and 11.40% for the September 30, 2015, and December 31, 2014, valuations, respectively. The discount rate was 9.23% and 9.20% for the September 30, 2015, and December 31, 2014, valuations, respectively. The average capitalization rate for the first nine months of 2015 ranged from 65 to 138 basis points compared to 75 and 139 basis points for 2014. Fees collected for the servicing of mortgage loans for others were $ 7.8 million and $ 6.4 million for the nine months ended September 30, 2015, and September 30, 2014, respectively. The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the nine months ended September 30, 2015, and September 30, 2014: 2015 2014 Balance at January 1 $ 24,984 $ 21,788 Originations 11,062 5,955 Amortization (6,446 ) (3,778 ) Balance at September 30 $ 29,600 $ 23,965 Fair value of mortgage servicing rights $ 40,166 $ 33,260 Mortgage servicing rights, net to servicing portfolio 0.75 % 0.71 % Heartland's commercial servicing rights portfolio was initially acquired with the Community Banc-Corp of Sheboygan, Inc. transaction that closed on January 16, 2015. The commercial servicing portfolio is comprised of loans serviced for the Small Business Administration and United States Department of Agriculture, which totaled $158.8 million . Fees collected for the servicing of commercial loans for others were $438,000 . The fair value of Heartland's commercial servicing rights was estimated at $4.4 million as of September 30, 2015. The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the nine months ended September 30, 2015, and September 30, 2014: 2015 2014 Balance at January 1 $ — $ — Purchased commercial servicing rights 4,255 — Originations 704 — Amortization (802 ) — Balance at September 30 $ 4,157 $ — Fair value of commercial servicing rights $ 4,412 $ — Commercial servicing rights, net to servicing portfolio 2.33 % — % Mortgage and commercial servicing rights are initially recorded at fair value in net gains on sale of loans held for sale when they are acquired through loan sales. Fair value is based on market prices for comparable servicing contracts, when available, or based on a valuation model that calculates the present value of estimated future net servicing income. Mortgage and commercial servicing rights are subsequently measured using the amortization method, which requires the asset to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the assets as compared to the carrying amount. Impairment is recognized through a valuation allowance for specific tranches to the extent that fair value is less than carrying amount. At September 30, 2015, and December 31, 2014, no valuation allowance was required for any of Heartland's servicing rights. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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, 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. In addition, Heartland is facilitating back-to-back loan swaps to assist customers in managing interest rate risk. Heartland's objectives are to add stability to its net interest margin and to manage its exposure to movements in interest rates. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. Heartland is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. Heartland minimizes this risk by entering into derivative contracts with counterparties that meet Heartland’s credit standards, and the contracts contain collateral provisions protecting the at-risk party. 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 $7.0 million and $5.3 million of cash as collateral at September 30, 2015 , and December 31, 2014 , respectively. Heartland's counterparties were required to pledge $0 at both September 30, 2015 , and December 31, 2014 , respectively. Heartland's derivative and hedging instruments are recorded at fair value on the consolidated balance sheets. See Note 8, “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 (loss) related to derivatives will be reclassified to interest expense as interest payments are received or made on Heartland's variable-rate liabilities. For the nine months ended September 30, 2015 , the change in net unrealized losses on cash flow hedges reflects changes in the fair value of the swaps and reclassification from accumulated other comprehensive income to interest expense totaling $1.7 million . For the next twelve months, Heartland estimates that cash payments and reclassification from accumulated other comprehensive income to interest expense will total $ 2.2 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 to effectively convert Heartland Financial Statutory Trust IV, V, and VII, which total $ 65.0 million , as well as Morrill Statutory Trust I and II, which total $ 20.0 million , from variable rate subordinated debentures to fixed 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. During the first quarter of 2015, Heartland entered into two additional forward starting interest rate swaps. The first forward starting interest rate swap transaction relates to Heartland's $20.0 million Statutory Trust VI, which will convert from a fixed interest rate subordinated debenture to a variable interest rate subordinated debenture. The effective date of the interest rate swap transaction is June 15, 2017, and Heartland Statutory Trust VI will effectively remain at a fixed interest rate. The forward-starting swap transaction expires on June 15, 2024. The second forward starting interest rate swap is effective on March 1, 2017, and will replace the current interest rate swap related to Heartland Statutory Trust VII upon its expiration on March 1, 2017. The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at September 30, 2015 , and December 31, 2014 , in thousands: Notional Amount Fair Value Balance Sheet Category Receive Rate Weighted Average Pay Rate Maturity September 30, 2015 Interest rate swap $ 9,309 $ (111 ) Other Liabilities 2.966 % 5.140 % 04/20/2016 Interest rate swap 25,000 (1,097 ) Other Liabilities 0.334 % 2.255 % 03/17/2021 Interest rate swap 20,000 (799 ) Other Liabilities 0.324 % 3.220 % 03/01/2017 Interest rate swap 20,000 (1,946 ) Other Liabilities 0.284 % 3.355 % 01/07/2020 Interest rate swap 10,000 (208 ) Other Liabilities 0.326 % 1.674 % 03/26/2019 Interest rate swap 10,000 (206 ) Other Liabilities 0.334 % 1.658 % 03/18/2019 Interest rate swap 20,000 (283 ) Other Liabilities 1.190 % 2.390 % 06/15/2024 Interest rate swap 20,000 (332 ) Other Liabilities 1.048 % 2.352 % 03/01/2024 December 31, 2014 Interest rate swap $ 10,369 $ (248 ) Other Liabilities 2.915 % 5.140 % 04/20/2016 Interest rate swap 25,000 (534 ) Other Liabilities 0.243 % 2.255 % 03/17/2021 Interest rate swap 20,000 (1,046 ) Other Liabilities 0.234 % 3.220 % 03/01/2017 Interest rate swap 20,000 (1,748 ) Other Liabilities 0.232 % 3.355 % 01/07/2020 Interest rate swap 10,000 (35 ) Other Liabilities 0.255 % 1.674 % 03/26/2019 Interest rate swap 10,000 (35 ) Other Liabilities 0.243 % 1.658 % 03/18/2019 The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the nine months ended September 30, 2015 , and September 30, 2014, 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) Three Months Ended September 30, 2015 Interest rate swap $ 48 Interest Expense $ (53 ) Other Income $ — Interest rate swap (574 ) Interest Expense (127 ) Other Income — Interest rate swap 78 Interest Expense (150 ) Other Income — Interest rate swap (266 ) Interest Expense (156 ) Other Income — Interest rate swap (122 ) Interest Expense (35 ) Other Income — Interest rate swap (120 ) Interest Expense (36 ) Other Income — Interest rate swap (774 ) Interest Expense — Other Income — Interest rate swap (784 ) Interest Expense — Other Income — Nine Months Ended September 30, 2015 Interest rate swap $ 137 Interest Expense $ (166 ) Other Income $ — Interest rate swap (563 ) Interest Expense (379 ) Other Income — Interest rate swap 247 Interest Expense (451 ) Other Income — Interest rate swap (198 ) Interest Expense (471 ) Other Income — Interest rate swap (173 ) Interest Expense (106 ) Other Income — Interest rate swap (171 ) Interest Expense (107 ) Other Income — Interest rate swap (283 ) Interest Expense — Other Income — Interest rate swap (332 ) Interest Expense — Other Income — Three Months Ended September 30, 2014 Interest rate swap $ 68 Interest Expense $ (63 ) Other Income $ — Interest rate swap 193 Interest Expense (129 ) Other Income — Interest rate swap 208 Interest Expense (153 ) Other Income — Interest rate swap 248 Interest Expense (158 ) Other Income — Interest rate swap 89 Interest Expense (37 ) Other Income — Interest rate swap 88 Interest Expense (37 ) Other Income — Interest rate swap — Interest Expense — Other Income — Nine Months Ended September 30, 2014 Interest rate swap $ 162 Interest Expense $ (192 ) Other Income $ — Interest rate swap (117 ) Interest Expense (258 ) Other Income — Interest rate swap 387 Interest Expense (455 ) Other Income — Interest rate swap 8 Interest Expense (473 ) Other Income — Interest rate swap 48 Interest Expense (74 ) Other Income — Interest rate swap 48 Interest Expense (73 ) Other Income — Interest rate swap 146 Interest Expense (146 ) Other Income — Fair Value Hedge Heartland uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. Heartland uses hedge accounting in accordance with ASC 815, with the unrealized gains and losses, representing the change in fair value of the derivative and the change in fair value of the risk being hedged on the related loan, being recorded in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income. Heartland uses statistical regression to assess hedge effectiveness, both at the inception of the hedge as well as on a continual basis. The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in the fair value of the asset being hedged due to changes in the hedge risk. During the second quarter of 2015, Heartland entered into an interest rate swap, paying a fixed interest rate of 3.40% to the counterparty and receives a variable interest rate from the same counterparty based on one month LIBOR plus .88% calculated on a notional amount of $13.8 million . The swap is designated as a fair value hedge and did not have a material impact on the consolidated balance sheets as of September 30, 2015, or consolidated statements of income for the three- and nine-month periods ended September 30, 2015. Heartland was required to pledge $414,000 of cash as collateral as of September 30, 2015. The swap was recorded in other liabilities with a fair value of $111,500 as of September 30, 2015. Loan Swaps Heartland enters into interest rate swap loan relationships with customers to meet their financing needs. Upon entering into these loan swaps, Heartland enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. As of September 30, 2015, the fair value of the swap asset was $570,000 , and the fair value of the swap liability was $570,000 . The notional amount of the back-to-back loan swaps total $19.5 million as of September 30, 2015. As of September 30, 2015, Heartland did not have any cash posted as collateral related to these back-to-back swaps, and there was no material impact to the consolidated financial statements. 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 net gains on sale of loans held for sale. These derivative contracts are designated as free standing derivative contracts and are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and therefore do not qualify for hedge accounting treatment. The table below identifies the balance sheet category and fair values of Heartland's derivative instruments not designated as hedging instruments at September 30, 2015 , and December 31, 2014 , in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2015 Interest rate lock commitments (mortgage) Other Assets $ 126,619 $ 4,903 Forward commitments Other Assets 117,525 833 Forward commitments Other Liabilities 309,020 (2,841 ) December 31, 2014 Interest rate lock commitments (mortgage) Other Assets $ 74,863 $ 2,496 Forward commitments Other Assets 88,484 275 Forward commitments Other Liabilities 218,337 (1,619 ) 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 three- and nine-month periods ended September 30, 2015 , and September 30, 2014, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended September 30, 2015 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ (361 ) Forward commitments Gains on sale of loans held for sale (4,237 ) Nine Months Ended September 30, 2015 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ 3,471 Forward commitments Gains on sale of loans held for sale (662 ) Three Months Ended September 30, 2014 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ (1,924 ) Forward commitments Gains on sale of loans held for sale 1,505 Nine Months Ended September 30, 2014 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ 3,393 Forward commitments Gains on sale of loans held for sale (1,474 ) |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
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, commercial servicing rights and other real estate owned. These nonrecurring fair value adjustments typically involve application of lower of cost or fair value accounting or write-downs of individual assets. Fair Value Hierarchy Under ASC 820, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 — Valuation is based upon quoted prices for identical instruments in active markets. Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, or similar instruments in markets that are not active, and model-based valuation techniques for all significant assumptions are observable in the market. Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring or non-recurring basis. Assets Securities Available for Sale and Held to Maturity Securities available for sale are recorded at fair value on a recurring basis. Securities held to maturity are generally recorded at cost and are recorded at fair value only to the extent a decline in fair value is determined to be other-than-temporary. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities. Level 2 securities include U.S. government and agency securities, mortgage-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. Level 3 securities consist primarily of Z-TRANCHE mortgage-backed securities and corporate debt 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. 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 measured at fair value are classified as nonrecurring Level 3 in the fair value hierarchy. Premises, furniture and equipment held for sale Heartland values premises, furniture and equipment held for sale based on third-party appraisals less estimated disposal costs. Heartland considers third party appraisals, as well as independent fair value assessments from realtors or persons involved in selling bank premises, furniture and equipment, in determining the fair value of particular properties. Accordingly, the valuation of premises, furniture and equipment held for sale is subject to significant external and internal judgment. Heartland periodically reviews premises, furniture and equipment held for sale to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. Premises, furniture and equipment held for sale are classified as nonrecurring Level 3 in the fair value hierarchy. Mortgage Servicing Rights Mortgage servicing rights assets represent the value associated with servicing residential real estate loans that have been sold to outside investors with servicing retained. Heartland uses the amortization method (i.e., the lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, to determine the carrying value of its mortgage servicing rights. The fair value for servicing assets is determined through discounted cash flow analysis and utilizes discount rates, prepayment speeds and delinquency rate assumptions as inputs. All of these assumptions require a significant degree of management estimation and judgment. Mortgage servicing rights are subject to impairment testing. The carrying values of these rights are reviewed quarterly for impairment based upon the calculation of fair value as performed by an outside third party. For purposes of measuring impairment, the rights are stratified into certain risk characteristics including note type and note term. If the valuation model reflects a fair 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. Commercial Servicing Rights Commercial servicing rights assets represent the value associated with servicing commercial loans that have been sold to Small Business Administration and United States Department of Agriculture with servicing retained. Heartland uses the amortization method (i.e., the lower of amortized cost or estimated fair value measured on a nonrecurring basis), not fair value measurement accounting, to determine the carrying value of its commercial servicing rights. The fair value for servicing assets is determined through market prices for comparable servicing contracts, when available, or through a valuation model that calculates the present value of estimated future net servicing income. Inputs utilized include discount rates, prepayment speeds and delinquency rate assumptions as inputs. All of these assumptions require a significant degree of management estimation and judgment. Commercial servicing rights are subject to impairment testing, and 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. If the valuation model reflects a fair value less than the carrying value, commercial servicing rights are adjusted to fair value through a valuation allowance. Heartland classifies commercial servicing rights as nonrecurring with Level 3 measurement inputs. Derivative Financial Instruments Heartland's current interest rate risk strategy includes interest rate swaps. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. To comply with the provisions of ASC 820, Heartland incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, Heartland has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although Heartland has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2015 , and December 31, 2014 , 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 of the fair value hierarchy. The table below presents Heartland's assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2015 , and December 31, 2014 , in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: Total Fair Value Level 1 Level 2 Level 3 September 30, 2015 Assets Securities available for sale U.S. government corporations and agencies $ 27,020 $ 529 $ 26,491 $ — Mortgage-backed securities 1,006,349 — 1,000,309 6,040 Obligations of states and political subdivisions 214,551 — 214,551 — Corporate debt securities 580 — — 580 Equity securities 13,187 — 13,187 — Interest rate lock commitments 4,903 — — 4,903 Forward commitments 833 — 833 — Total assets at fair value $ 1,267,423 $ 529 $ 1,255,371 $ 11,523 Liabilities Derivative financial instruments $ 4,982 $ — $ 4,982 $ — Forward commitments 2,841 — 2,841 — Total liabilities at fair value $ 7,823 $ — $ 7,823 $ — December 31, 2014 Assets 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 — Corporate debt securities — — — — 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 $ — The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: Fair Value Measurements at September 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Year-to- Date Losses Collateral dependent impaired loans: Commercial $ 767 $ — $ — $ 767 $ 79 Commercial real estate 4,277 — — 4,277 57 Agricultural and agricultural real estate — — — — — Residential real estate 2,475 — — 2,475 5 Consumer 1,970 — — 1,970 — Total collateral dependent impaired loans $ 9,489 $ — $ — $ 9,489 $ 141 Other real estate owned $ 17,041 $ — $ — $ 17,041 $ 1,685 Premises, furniture and equipment held for sale $ 3,440 $ — $ — $ 3,440 $ — Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Year-to- Date Losses 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 Premises, furniture and equipment held for sale $ — $ — $ — $ — $ — The following tables present additional quantitative information about assets measured at fair value and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at 9/30/15 Valuation Technique Unobservable Input Range (Weighted Average) Z-TRANCHE Securities $ 6,040 Discounted cash flows Pretax discount rate 7.00 - 9.50% Actual defaults 17.28 - 32.60% (26.32%) Actual deferrals 4.91 - 21.20% (16.30%) Corporate debt securities 580 Discounted cash flows Bank analysis (1) Interest rate lock commitments 4,903 Discounted cash flows Closing ratio (2) Premises, furniture and equipment held for sale 3,440 Modified appraised value Third party appraisal (3) Appraisal discount (3) Collateral dependent impaired loans: Commercial 767 Modified appraised value Third party appraisal (3) Appraisal discount (3) Commercial real estate 4,277 Modified appraised value Third party appraisal (3) Appraisal discount (3) Agricultural and agricultural real estate — Modified appraised value Third party appraisal (3) Appraisal discount (3) Residential real estate 2,475 Modified appraised value Third party appraisal (3) Appraisal discount (3) Consumer 1,970 Modified appraised value Third party valuation (3) Valuation discount (3) Other real estate owned 17,041 Modified appraised value Third party appraisal (3) Appraisal discount (3) (1) The unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. (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 which 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 September 30, 2015, was 86%. (3) 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 at 12/31/14 Valuation Technique Unobservable Input Range (Weighted Average) Z-TRANCHE Securities $ 4,947 Discounted cash flows Pretax discount rate 7.00 - 9.00% Actual defaults 15.60 - 30.60% (24.50%) Actual deferrals 7.20 - 17.30% (12.90%) Corporate debt securities — Discounted cash flows Bank analysis (1) Interest rate lock commitments 2,496 Discounted cash flows Closing ratio (2) Premises, furniture and equipment held for sale — Modified appraised value Third party appraisal (3) (3) Collateral dependent impaired loans: Commercial 1,033 Modified appraised value Third party appraisal (3) Appraisal discount (3) Commercial real estate 12,584 Modified appraised value Third party appraisal (3) Appraisal discount (3) Agricultural and agricultural real estate 552 Modified appraised value Third party appraisal (3) Appraisal discount (3) Residential real estate 3,173 Modified appraised value Third party appraisal (3) Appraisal discount (3) Consumer 2,003 Modified appraised value Third party valuation (3) Valuation discount (3) Other real estate owned 19,016 Modified appraised value Third party appraisal (3) Appraisal discount (3) (1) The unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. (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 which 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) 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 on a recurring basis are summarized in the following table, in thousands: For the Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ 4,947 $ 3,298 Total gains (losses): Included in earnings — — Included in other comprehensive income 1,209 1,783 Purchases, sales and settlements: Purchases 6 — Sales — — Settlements (122 ) (134 ) Balance at period end $ 6,040 $ 4,947 The changes in fair value of the corporate debt securities, Level 3 assets, that are measured on a recurring basis is summarized in the following table, in thousands: For the Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ — $ — Total gains (losses): Included in earnings — — Included in other comprehensive income (160 ) — Purchases, acquired, sales and settlements: Purchases — — Acquired 740 — Sales — — Settlements — — Balance at period end $ 580 $ — 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 Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ 2,496 $ 1,809 Total gains (losses) included in earnings 3,471 2,422 Issuances 3,851 2,038 Settlements (4,915 ) (3,773 ) Balance at period end $ 4,903 $ 2,496 Gains included in net gains on sale of loans held for sale attributable to interest rate lock commitments held at September 30, 2015, and December 31, 2014, were $4.9 million and $2.5 million , respectively. The tables below summarize the estimated fair value of Heartland's financial instruments as defined by ASC 825 as of September 30, 2015 , and December 31, 2014 , in thousands. The carrying amounts in the following tables are recorded in the consolidated balance sheets under the indicated captions. In accordance with ASC 825, the assets and liabilities that are not financial instruments are not included in the disclosure, such as the value of the mortgage servicing rights, premises, furniture and equipment, premises, furniture and equipment held for sale, goodwill and other intangibles and other liabilities. Heartland does not believe that the estimated information presented herein is representative of the earnings power or value of Heartland. The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of Heartland to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. Fair Value Measurements at September 30, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 91,105 $ 91,105 $ 91,105 $ — $ — Time deposits in other financial institutions 2,355 2,355 2,355 — — Securities: Available for sale 1,261,687 1,261,687 529 1,254,538 6,620 Held to maturity 282,200 294,622 — 294,622 — Other investments 19,292 19,292 — 19,057 235 Loans held for sale 102,569 102,569 — 102,569 — Loans, net: Commercial 1,226,694 1,223,493 — 1,222,726 767 Commercial real estate 2,043,473 2,058,649 — 2,054,372 4,277 Agricultural and agricultural real estate 465,961 469,329 — 469,329 — Residential real estate 486,782 483,793 — 481,318 2,475 Consumer 372,508 375,497 — 373,527 1,970 Total Loans, net 4,595,418 4,610,761 — 4,601,272 9,489 Interest rate lock commitments 4,903 4,903 — — 4,903 Forward commitments 833 833 — 833 — Financial liabilities: Deposits Demand deposits 1,632,005 1,632,005 — 1,632,005 — Savings deposits 2,936,611 2,936,611 — 2,936,611 — Time deposits 938,621 938,621 — 938,621 — Short term borrowings 335,845 335,845 — 335,845 — Other borrowings 302,086 305,361 — 305,361 — Derivative financial instruments 4,982 4,982 — 4,982 — Forward commitments 2,841 2,841 — 2,841 — Fair Value Measurements at December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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: 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 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 — Cash and Cash Equivalents — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. Time Deposits in Other Financial Institutions — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. Securities — For securities either held to maturity, available for sale or trading, fair value equals quoted market price if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. For Level 3 securities, Heartland utilizes independent pricing provided by third party vendors or brokers. Other Investments — Fair value measurement of other investments, which consists primarily of FHLB stock, are based on their redeemable value, which is at cost due to the restrictions placed on their transferability. 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 present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the underlying collateral. The fair value of loans held for sale is estimated using quoted market prices. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Heartland has identified two operating segments for purposes of financial reporting: community and other banking, and retail mortgage banking. These segments were determined based on the products and services provided or the type of customers served and are consistent with the information used by Heartland's key decision makers to make operating decisions and to assess Heartland's performance. The following tables present financial information from Heartland's operating segments for the three and nine months ended September 30, 2015 , and September 30, 2014, in thousands. Three Months Ended September 30, 2015 2014 Community and Other Banking Retail Mortgage Banking Total Community and Other Banking Retail Mortgage Banking Total Net interest income $ 58,123 $ 1,601 $ 59,724 $ 50,790 $ 701 $ 51,491 Provision for loan losses 3,181 — 3,181 2,553 — 2,553 Total noninterest income 16,015 8,965 24,980 11,568 9,038 20,606 Total noninterest expense 49,168 12,828 61,996 43,228 11,427 54,655 Income (loss) before taxes $ 21,789 $ (2,262 ) $ 19,527 $ 16,577 $ (1,688 ) $ 14,889 Average Loans, for the period $ 4,563,221 $ 90,958 $ 4,654,179 $ 3,736,917 $ 75,301 $ 3,812,218 Segment Assets, at period end $ 6,676,526 $ 129,358 $ 6,805,884 $ 5,817,427 $ 117,382 $ 5,934,809 Nine Months Ended 2015 2014 Community Retail Total Community Retail Total Net interest income $ 167,000 $ 4,298 $ 171,298 $ 148,930 $ 1,972 $ 150,902 Provision for loan losses 10,526 — 10,526 11,635 — 11,635 Total noninterest income 48,679 37,625 86,304 35,085 25,906 60,991 Total noninterest expense 145,614 39,478 185,092 129,108 32,744 161,852 Income (loss) before taxes $ 59,539 $ 2,445 $ 61,984 $ 43,272 $ (4,866 ) $ 38,406 Average Loans, for the period $ 4,365,908 $ 91,807 $ 4,457,715 $ 3,629,822 $ 62,896 $ 3,692,718 Segment Assets, at period end $ 6,676,526 $ 129,358 $ 6,805,884 $ 5,817,427 $ 117,382 $ 5,934,809 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Earnings Per Share | 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. |
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 cash incentive awards, under its 2012 Long-Term Incentive Plan (the "Plan"). The Plan, which was approved by stockholders in May 2012 and replaced Heartland's 2005 Long-Term Incentive Plan with respect to grants after such approval, reserved 268,390 shares of common stock at September 30, 2015, for issuance under future awards that may be granted under the Plan to employees and directors of, and service providers to, Heartland or its subsidiaries. Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, " Compensation-Stock Compensation " requires the measurement of the cost of employee services received in exchange for an award of equity instruments based upon the fair value of the award on the grant date. The cost of the award is based upon its fair value estimated on the date of grant and recognized in the consolidated statements of income over the vesting period of the award. The fair market value of restricted stock and restricted stock units is based on the fair value of the underlying shares of common stock on the date of grant. The fair value of stock options is estimated on the date of grant using the Black-Scholes model. |
Effect of New Financial Accounting Standards | Effect of New Financial Accounting Standards 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 benefit 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 31, 2014, and should be applied retrospectively to all periods presented. Heartland elected to use the proportional amortization method for equity investments in qualified affordable housing projects that meet the conditions specified in ASU-2014-01. Heartland adopted this standard on January 1, 2015, 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 2014-04, " 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 adopted this standard on January 1, 2015, and the adoption did not have a material impact on the results of operations, financial position, and liquidity. As of September 30, 2015, Heartland had not received possession of any residential real estate properties that meet the disclosure requirements. 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, 2017 (including interim reporting periods within those periods). Early application is not permitted. Heartland intends to adopt the accounting standard during the first quarter of 2018, 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: (1) the loan has a government guarantee that is not separate from the loan before foreclosure, and (2) 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 (3) 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 adopted this standard on January 1, 2015, and the adoption did not have an 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. In April 2015, the FASB issued ASU 2015-03, " Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. " The amendment intends to simplify the presentation of debt issuance costs and more closely align the presentation of debt issuance costs under U.S. GAAP with the presentation under comparable International Financial Reporting Standards. The cost of issuing debt will no longer be recorded as a separate asset, except when incurred before receipt of the funding from the associated debt liability. Debt issuance costs related to a recognized debt liability are to be presented on the balance sheet as a direct reduction from the debt liability, similar to the presentation of debt premiums or discounts. The costs will continue to be amortized to interest expense using the effective interest method. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. The ASU requires retrospective application to all prior periods presented in the financial statements. Heartland adopted this standard effective March 31, 2015, at which time $550,000 was reclassified from other assets to other borrowings on the consolidated balance sheet for all periods presented. In April 2015, the FASB issued ASU 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software." The amendment intends to provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer's accounting for service contracts. As a result, all software licenses within the scope of this guidance will be accounted for consistently with other licenses of intangible assets. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities can elect to adopt the standard either retrospectively or prospectively to all cloud computing arrangements entered into or materially modified after the adoption date. Early adoption is permitted. Heartland intends to adopt this standard on January 1, 2016 and believes the adoption will not have a material impact on the results of operations, financial position, and liquidity. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." The amendment eliminates the requirement of Topic 805, Business Combinations, to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised. Additional disclosures are required about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. This amendment is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted if financial statements have not been issued. Heartland adopted this standard effective September 30, 2015. The adoption of this standard did not have a material impact on the results of operations, financial position, and liquidity. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Amounts used in the determination of basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014, are shown in the table below: Three Months Ended September 30, (Dollars and number of shares in thousands, except per share data) 2015 2014 Net income attributable to Heartland $ 14,582 $ 11,973 Preferred dividends and discount (205 ) (205 ) Net income available to common stockholders $ 14,377 $ 11,768 Weighted average common shares outstanding for basic earnings per share 20,620 18,469 Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units 273 284 Weighted average common shares for diluted earnings per share 20,893 18,753 Earnings per common share — basic $ 0.70 $ 0.64 Earnings per common share — diluted $ 0.69 $ 0.63 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 94 Nine Months Ended September 30, (Dollars and number of shares in thousands, except per share data) 2015 2014 Net income attributable to Heartland $ 45,451 $ 29,637 Preferred dividends and discount (613 ) (613 ) Net income available to common stockholders $ 44,838 $ 29,024 Weighted average common shares outstanding for basic earnings per share 20,483 18,456 Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units 269 287 Weighted average common shares for diluted earnings per share 20,752 18,743 Earnings per common share — basic $ 2.19 $ 1.57 Earnings per common share — diluted $ 2.16 $ 1.55 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 94 |
Summary of Status of RSUs | A summary of the status of the RSUs as of September 30, 2015 and 2014, and changes during the nine months ended September 30, 2015 and 2014, follows: 2015 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at January 1 396,555 $ 21.48 353,070 $ 18.62 Granted 139,943 28.90 133,139 26.65 Vested (151,681 ) 17.98 (74,521 ) 16.95 Forfeited (15,636 ) 25.08 (7,483 ) 20.22 Outstanding at September 30 369,181 $ 25.56 404,205 $ 21.44 |
Summary of Status of Stock Options | A summary of the status of the stock options as of September 30, 2015 and 2014, and changes during the nine months ended September 30, 2015 and 2014, follows: 2015 2014 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at January 1 215,851 $ 23.85 261,936 $ 23.60 Granted — — — — Exercised (81,401 ) 23.34 (9,750 ) 19.67 Forfeited (3,250 ) 23.51 (7,000 ) 26.62 Outstanding at September 30 131,200 $ 24.15 245,186 $ 23.67 Options exercisable at September 30 131,200 $ 24.15 245,186 $ 23.67 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table represents, in thousands, the amounts recorded on the consolidated balance sheet as of January 16, 2015: As of January 16, 2015 Fair value of consideration paid Common Stock $ 53,052 Cash 6 Total consideration paid 53,058 Fair value of assets acquired Cash and due from banks 7,109 Securities: Securities available for sale 52,976 Other securities 1,284 Loans held for sale 728 Loans held to maturity 395,007 Premises, furniture and equipment, net 13,954 Other real estate, net 346 Other intangible assets, net 10,295 Other assets 25,066 Total assets 506,765 Fair value of liabilities assumed Deposits 433,919 Short term borrowings 24,836 Other borrowings 6,097 Other liabilities 7,434 Total liabilities assumed 472,286 Fair value of net assets acquired 34,479 Goodwill resulting from acquisition $ 18,579 |
Business Acquisition, Pro Forma Information | The following pro forma information presents the results of operations for the years ended December 31, 2014, and December 31, 2013, as if the Community Banc-Corp of Sheboygan, Inc. acquisition occurred on January 1, 2013: (Dollars in thousands, except per share data) For the Years Ended December 31, 2014 December 31, 2013 Net interest income $ 220,358 $ 179,001 Net income $ 44,710 $ 42,105 Basic earnings per share $ 2.19 $ 2.20 Diluted earnings per share $ 2.16 $ 2.17 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of September 30, 2015 , and December 31, 2014 , are summarized in the table below, in thousands: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2015 U.S. government corporations and agencies $ 26,584 $ 436 $ — $ 27,020 Mortgage-backed securities 1,001,955 13,210 (8,816 ) 1,006,349 Obligations of states and political subdivisions 211,194 3,946 (589 ) 214,551 Corporate debt securities 740 — (160 ) 580 Total debt securities 1,240,473 17,592 (9,565 ) 1,248,500 Equity securities 13,134 53 — 13,187 Total $ 1,253,607 $ 17,645 $ (9,565 ) $ 1,261,687 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 Corporate debt securities — — — — 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 |
Schedule of Held to Maturity Securities | The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2015 , and December 31, 2014 , are summarized in the table below, in thousands: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2015 Mortgage-backed securities $ 5,482 $ 178 $ (945 ) $ 4,715 Obligations of states and political subdivisions 276,718 14,048 (859 ) 289,907 Total $ 282,200 $ 14,226 $ (1,804 ) $ 294,622 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 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities available for sale at September 30, 2015 , by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. Amortized Cost Estimated Fair Value Due in 1 year or less $ 3,831 $ 3,839 Due in 1 to 5 years 40,492 40,749 Due in 5 to 10 years 63,734 64,596 Due after 10 years 130,461 132,967 Total debt securities 238,518 242,151 Mortgage-backed securities 1,001,955 1,006,349 Equity securities 13,134 13,187 Total investment securities $ 1,253,607 $ 1,261,687 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2015 , by contractual maturity are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. Amortized Cost Estimated Fair Value Due in 1 year or less $ 5,290 $ 5,367 Due in 1 to 5 years 13,881 14,620 Due in 5 to 10 years 59,706 62,884 Due after 10 years 197,841 207,036 Total debt securities 276,718 289,907 Mortgage-backed securities 5,482 4,715 Total investment securities $ 282,200 $ 294,622 |
Schedule of Realized Gross Gains (Losses) | Gross gains and losses realized related to the sales of securities available for sale for the three- and nine-month periods ended September 30, 2015 and 2014, are summarized as follows, in thousands: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales $ 351,050 $ 189,939 $ 877,077 $ 699,830 Gross security gains 2,416 1,101 10,857 4,547 Gross security losses 609 276 1,587 2,087 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following tables summarize, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 2015 , and December 31, 2014 . 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 w as September 30, 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 U.S. government corporations and agencies $ — $ — $ — $ — $ — $ — Mortgage-backed securities 381,863 (7,239 ) 110,908 (1,577 ) 492,771 (8,816 ) Obligations of states and political subdivisions 32,527 (442 ) 9,892 (147 ) 42,419 (589 ) Corporate debt securities 580 (160 ) — — 580 (160 ) Total temporarily impaired securities $ 414,970 $ (7,841 ) $ 120,800 $ (1,724 ) $ 535,770 $ (9,565 ) 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 ) Corporate debt securities — — — — — — Total temporarily impaired securities $ 334,291 $ (7,412 ) $ 326,585 $ (4,899 ) $ 660,876 $ (12,311 ) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | Securities held to maturity Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 Mortgage-backed securities $ — $ — $ 1,832 $ (945 ) $ 1,832 $ (945 ) Obligations of states and political subdivisions 11,258 (70 ) 18,220 (789 ) 29,478 (859 ) Total temporarily impaired securities $ 11,258 $ (70 ) $ 20,052 $ (1,734 ) $ 31,310 $ (1,804 ) December 31, 2014 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 ) |
OTTI Write-downs Included in Earnings and AOCI | The following table shows the detail of OTTI write-downs on debt securities included in earnings and the related changes in other accumulated comprehensive income ("AOCI") for the same securities, in thousands: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Recorded as part of gross realized losses: Credit related OTTI $ — $ — $ — $ — Intent to sell OTTI — — — — Total recorded as part of gross realized losses — — — — Recorded directly to AOCI for non-credit related impairment: Residential mortgage backed securities — — — — Accretion of non-credit related impairment (24 ) (24 ) (72 ) (72 ) Total changes to AOCI for non-credit related impairment (24 ) (24 ) (72 ) (72 ) Total OTTI losses (accretion) recorded on debt securities, net $ (24 ) $ (24 ) $ (72 ) $ (72 ) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans and Leases | Loans and leases as of September 30, 2015 , and December 31, 2014 , were as follows, in thousands: September 30, 2015 December 31, 2014 Loans and leases receivable held to maturity: Commercial $ 1,240,956 $ 1,036,080 Commercial real estate 2,062,142 1,707,060 Agricultural and agricultural real estate 469,381 423,827 Residential real estate 491,667 380,341 Consumer 379,903 330,555 Gross loans and leases receivable held to maturity 4,644,049 3,877,863 Unearned discount (478 ) (90 ) Deferred loan fees (1,048 ) (1,028 ) Total net loans and leases receivable held to maturity 4,642,523 3,876,745 Loans covered under loss share agreements: Commercial and commercial real estate — 54 Agricultural and agricultural real estate — — Residential real estate — 1,204 Consumer — — Total loans covered under loss share agreements — 1,258 Allowance for loan and lease losses (47,105 ) (41,449 ) Loans and leases receivable, net $ 4,595,418 $ 3,836,554 |
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 September 30, 2015 , and December 31, 2014 , and the related loan balances, disaggregated on the basis of impairment methodology, in thousands. Loans evaluated under ASC 310-10-35 include loans on nonaccrual status and troubled debt restructurings, which are individually evaluated for impairment, and other impaired loans deemed to have similar risk characteristics. All other loans are collectively evaluated for impairment under ASC 450-20. Heartland has made no significant changes to the accounting for the allowance for loan and lease losses policy during 2015. Allowance For Loan and Lease Losses Gross Loans and Leases Receivable Held to Maturity Ending Balance Under ASC 310-10-35 Ending Balance Under ASC 450-20 Total Ending Balance Evaluated for Impairment Under ASC 310-10-35 Ending Balance Evaluated for Impairment Under ASC 450-20 Total September 30, 2015 Commercial $ 388 $ 13,522 $ 13,910 $ 8,386 $ 1,232,570 $ 1,240,956 Commercial real estate 645 17,441 18,086 43,682 2,018,460 2,062,142 Agricultural and agricultural real estate 40 3,899 3,939 5,916 463,465 469,381 Residential real estate 372 3,474 3,846 14,024 477,643 491,667 Consumer 1,057 6,267 7,324 4,925 374,978 379,903 Total $ 2,502 $ 44,603 $ 47,105 $ 76,933 $ 4,567,116 $ 4,644,049 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 |
Schedule of Financing Receivables, Non Accrual Status | The following table presents nonaccrual loans, accruing loans past due 90 days or more and troubled debt restructured loans not covered under loss share agreements at September 30, 2015 , and December 31, 2014 , in thousands. There were no nonaccrual leases, accruing leases past due 90 days or more or restructured leases at September 30, 2015 , and December 31, 2014 . September 30, 2015 December 31, 2014 Nonaccrual loans $ 30,965 $ 24,205 Nonaccrual troubled debt restructured loans 1,612 865 Total nonaccrual loans $ 32,577 $ 25,070 Accruing loans past due 90 days or more $ 1,181 $ — Performing troubled debt restructured loans $ 10,154 $ 12,133 |
Troubled Debt Restructuring on Loans Modified | The following table provides information on troubled debt restructured loans that were modified during the three and nine months ended September 30, 2015 , and September 30, 2014, dollars in thousands: Three Months Ended 2015 2014 Number Pre- Post- Number Pre- Post- Commercial — $ — $ — — $ — $ — Commercial real estate — — — — — — Total commercial and commercial real estate — — — — — — Agricultural and agricultural real estate — — — 1 60 60 Residential real estate 1 55 55 — — — Consumer — — — — — — Total 1 $ 55 $ 55 1 $ 60 $ 60 Nine Months Ended September 30, 2015 2014 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Commercial 1 $ 830 $ 830 — $ — $ — Commercial real estate 1 3,992 3,992 1 298 298 Total commercial and commercial real estate 2 4,822 4,822 1 298 298 Agricultural and agricultural real estate 1 311 311 3 3,417 3,417 Residential real estate 1 55 55 1 38 38 Consumer — — — — — — Total 4 $ 5,188 $ 5,188 5 $ 3,753 $ 3,753 |
Troubled Debt Restructured Loans with Payment Default | The following tables provide information on troubled debt restructured loans for which there was a payment default during the three months and nine months ended September 30, 2015, and September 30, 2014, in thousands, that had been modified during the twelve-month period prior to default: With Payment Defaults During the Following Periods Three Months Ended 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial — $ — — $ — Commercial real estate 1 814 — — Total commercial and commercial real estate 1 814 — — Agricultural and agricultural real estate — — 1 60 Residential real estate — — — — Consumer — — — — Total 1 $ 814 1 $ 60 With Payment Defaults During the Following Periods Nine Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial — $ — — $ — Commercial real estate 1 814 — — Total commercial and commercial real estate 1 814 — — Agricultural and agricultural real estate — — 1 60 Residential real estate — — — — Consumer — — — — Total 1 $ 814 1 $ 60 |
Financing Receivable Credit Quality Indicators | The following table presents loans and leases not covered by loss share agreements by credit quality indicator at September 30, 2015 , and December 31, 2014 , in thousands: Pass Nonpass Total September 30, 2015 Commercial $ 1,093,853 $ 147,103 $ 1,240,956 Commercial real estate 1,878,579 183,563 2,062,142 Total commercial and commercial real estate 2,972,432 330,666 3,303,098 Agricultural and agricultural real estate 443,460 25,921 469,381 Residential real estate 470,332 21,335 491,667 Consumer 371,268 8,635 379,903 Total gross loans and leases receivable held to maturity $ 4,257,492 $ 386,557 $ 4,644,049 December 31, 2014 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 |
Past Due Financing Receivables | The following table sets forth information regarding Heartland's accruing and nonaccrual loans and leases not covered by loss share agreements at September 30, 2015 , and December 31, 2014 , in thousands: Accruing Loans and Leases 30-59 Days Past Due 60-89 Days 90 Days or More Past Due Total Past Due Current Nonaccrual Total Loans and Leases September 30, 2015 Commercial $ 1,729 $ 21 $ 291 $ 2,041 $ 1,235,294 $ 3,621 $ 1,240,956 Commercial real estate 6,115 1,475 890 8,480 2,040,177 13,485 2,062,142 Total commercial and commercial real estate 7,844 1,496 1,181 10,521 3,275,471 17,106 3,303,098 Agricultural and agricultural real estate 223 84 — 307 466,607 2,467 469,381 Residential real estate 2,118 535 — 2,653 478,464 10,550 491,667 Consumer 4,710 1,446 — 6,156 371,293 2,454 379,903 Total gross loans and leases receivable held to maturity $ 14,895 $ 3,561 $ 1,181 $ 19,637 $ 4,591,835 $ 32,577 $ 4,644,049 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 |
Impaired Loans Not Covered by Loss Share Agreements | The following tables present, for impaired loans not covered by loss share agreements and by category of loan, the unpaid contractual balance at September 30, 2015 , and December 31, 2014 ; the outstanding loan balance recorded on the consolidated balance sheets at September 30, 2015 , and December 31, 2014 ; any related allowance recorded for those loans as of September 30, 2015 , and December 31, 2014 ; the average outstanding loan balance recorded on the consolidated balance sheets during the nine months ended September 30, 2015 , and year ended December 31, 2014 ; and the interest income recognized on the impaired loans during the nine months ended September 30, 2015 , and year ended December 31, 2014 , in thousands: Unpaid Contractual Balance Loan Balance Related Allowance Recorded Quarter-to- Date Avg. Loan Balance Quarter-to- Date Interest Income Recognized Year-to- Date Avg. Loan Balance Year-to- Date Interest Income Recognized September 30, 2015 Impaired loans with a related allowance: Commercial $ 1,200 $ 948 $ 388 $ 394 $ 3 $ 383 $ 9 Commercial real estate 2,384 2,384 645 1,243 10 2,028 20 Total commercial and commercial real estate 3,584 3,332 1,033 1,637 13 2,411 29 Agricultural and agricultural real estate 3,196 3,196 40 3,281 85 3,058 123 Residential real estate 2,637 2,469 372 2,860 7 2,619 16 Consumer 3,036 3,027 1,057 3,136 5 2,845 16 Total impaired loans with a related allowance $ 12,453 $ 12,024 $ 2,502 $ 10,914 $ 110 $ 10,933 $ 184 Impaired loans without a related allowance: Commercial $ 7,518 $ 7,438 $ — $ 9,759 $ 100 $ 7,050 $ 274 Commercial real estate 44,758 41,298 — 42,476 397 36,149 1,055 Total commercial and commercial real estate 52,276 48,736 — 52,235 497 43,199 1,329 Agricultural and agricultural real estate 2,720 2,720 — 2,197 — 2,106 9 Residential real estate 11,593 11,555 — 10,305 15 8,936 85 Consumer 1,898 1,898 — 2,025 4 2,431 27 Total impaired loans without a related allowance $ 68,487 $ 64,909 $ — $ 66,762 $ 516 $ 56,672 $ 1,450 Total impaired loans held to maturity: Commercial $ 8,718 $ 8,386 $ 388 $ 10,153 $ 103 $ 7,433 $ 283 Commercial real estate 47,142 43,682 645 43,719 407 38,177 1,075 Total commercial and commercial real estate 55,860 52,068 1,033 53,872 510 45,610 1,358 Agricultural and agricultural real estate 5,916 5,916 40 5,478 85 5,164 132 Residential real estate 14,230 14,024 372 13,165 22 11,555 101 Consumer 4,934 4,925 1,057 5,161 9 5,276 43 Total impaired loans held to maturity $ 80,940 $ 76,933 $ 2,502 $ 77,676 $ 626 $ 67,605 $ 1,634 Unpaid Contractual Balance Loan Balance Related Allowance Recorded Year-to- Date Avg. Loan Balance Year-to- Date Interest Income 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 impaired loans with a related allowance $ 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 impaired loans without a related allowance $ 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 |
Summary of Purchased Impaired and Nonimpaired Loans | The carrying amount of the loans acquired with the acquisitions in 2015 at September 30, 2015 , consisted of purchased impaired and nonimpaired loans as summarized in the following table, in thousands: September 30, 2015 Impaired Non Impaired Total Loans Commercial $ — $ 93,304 $ 93,304 Commercial real estate 6,561 270,229 276,790 Agricultural and agricultural real estate — 2,788 2,788 Residential real estate — 49,816 49,816 Consumer loans — 28,056 28,056 Total Loans $ 6,561 $ 444,193 $ 450,754 |
Allowance for Loan and Lease 24
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Allowance for Loan and Lease Losses [Abstract] | |
Changes in the Allowance for Loan and Leases Losses | Changes in the allowance for loan and lease losses for the three and nine months ended September 30, 2015 , and September 30, 2014, were as follows, in thousands: Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at June 30, 2015 $ 13,064 $ 17,608 $ 3,676 $ 4,099 $ 7,167 $ — $ 45,614 Charge-offs (869 ) (376 ) — (13 ) (1,181 ) — (2,439 ) Recoveries 87 357 5 71 229 — 749 Provision 1,628 497 258 (311 ) 1,109 — 3,181 Balance at September 30, 2015 $ 13,910 $ 18,086 $ 3,939 $ 3,846 $ 7,324 $ — $ 47,105 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at December 31, 2014 $ 11,909 $ 15,898 $ 3,295 $ 3,741 $ 6,606 $ — $ 41,449 Charge-offs (1,825 ) (1,080 ) (551 ) (126 ) (3,595 ) — (7,177 ) Recoveries 518 853 29 178 729 — 2,307 Provision 3,308 2,415 1,166 53 3,584 — 10,526 Balance at September 30, 2015 $ 13,910 $ 18,086 $ 3,939 $ 3,846 $ 7,324 $ — $ 47,105 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at June 30, 2014 $ 11,927 $ 14,680 $ 2,788 $ 3,815 $ 7,516 $ 166 $ 40,892 Charge-offs (875 ) (295 ) (338 ) (21 ) (1,120 ) — (2,649 ) Recoveries 145 539 5 29 184 — 902 Provision 158 1,221 661 (200 ) 673 40 2,553 Balance at September 30, 2014 $ 11,355 $ 16,145 $ 3,116 $ 3,623 $ 7,253 $ 206 $ 41,698 Commercial Commercial Real Estate Agricultural Residential Real Estate Consumer Unallocated Total Balance at December 31, 2013 $ 13,099 $ 14,152 $ 2,992 $ 3,720 $ 7,722 $ — $ 41,685 Charge-offs (7,940 ) (1,379 ) (1,974 ) (225 ) (3,189 ) — (14,707 ) Recoveries 552 1,833 9 85 606 — 3,085 Provision 5,644 1,539 2,089 43 2,114 206 11,635 Balance at September 30, 2014 $ 11,355 $ 16,145 $ 3,116 $ 3,623 $ 7,253 $ 206 $ 41,698 |
Goodwill, Core Deposit Premiu25
Goodwill, Core Deposit Premium and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets | The gross carrying amount of other intangible assets and the associated accumulated amortization at September 30, 2015 , and December 31, 2014 , are presented in the table below, in thousands: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangibles $ 29,138 $ 14,572 $ 14,566 $ 21,069 $ 12,525 $ 8,544 Mortgage servicing rights 44,166 14,566 29,600 37,825 12,841 24,984 Customer relationship intangible 1,177 805 372 1,177 773 404 Commercial servicing rights 4,959 802 4,157 — — — Total $ 79,440 $ 30,745 $ 48,695 $ 60,071 $ 26,139 $ 33,932 |
Schedule of Estimated Future Amortization Expense of Amortizable Intangible Assets | The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Deposit Intangibles Mortgage Servicing Rights Customer Relationship Intangible Commercial Servicing Rights Total Three months ending December 31, 2015 $ 755 $ 2,087 $ 11 $ 221 $ 3,074 Year ending December 31, 2016 2,772 6,878 41 866 10,557 2017 2,452 5,896 40 820 9,208 2018 2,169 4,913 39 731 7,852 2019 1,886 3,930 38 563 6,417 2020 1,619 2,948 37 364 4,968 Thereafter 2,913 2,948 166 592 6,619 Total $ 14,566 $ 29,600 $ 372 $ 4,157 $ 48,695 |
Summary of Changes in Servicing Rights | The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the nine months ended September 30, 2015, and September 30, 2014: 2015 2014 Balance at January 1 $ — $ — Purchased commercial servicing rights 4,255 — Originations 704 — Amortization (802 ) — Balance at September 30 $ 4,157 $ — Fair value of commercial servicing rights $ 4,412 $ — Commercial servicing rights, net to servicing portfolio 2.33 % — % The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the nine months ended September 30, 2015, and September 30, 2014: 2015 2014 Balance at January 1 $ 24,984 $ 21,788 Originations 11,062 5,955 Amortization (6,446 ) (3,778 ) Balance at September 30 $ 29,600 $ 23,965 Fair value of mortgage servicing rights $ 40,166 $ 33,260 Mortgage servicing rights, net to servicing portfolio 0.75 % 0.71 % |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Category and Fair Values of Derivative Instruments Designated as Cash Flow Hedges | The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at September 30, 2015 , and December 31, 2014 , in thousands: Notional Amount Fair Value Balance Sheet Category Receive Rate Weighted Average Pay Rate Maturity September 30, 2015 Interest rate swap $ 9,309 $ (111 ) Other Liabilities 2.966 % 5.140 % 04/20/2016 Interest rate swap 25,000 (1,097 ) Other Liabilities 0.334 % 2.255 % 03/17/2021 Interest rate swap 20,000 (799 ) Other Liabilities 0.324 % 3.220 % 03/01/2017 Interest rate swap 20,000 (1,946 ) Other Liabilities 0.284 % 3.355 % 01/07/2020 Interest rate swap 10,000 (208 ) Other Liabilities 0.326 % 1.674 % 03/26/2019 Interest rate swap 10,000 (206 ) Other Liabilities 0.334 % 1.658 % 03/18/2019 Interest rate swap 20,000 (283 ) Other Liabilities 1.190 % 2.390 % 06/15/2024 Interest rate swap 20,000 (332 ) Other Liabilities 1.048 % 2.352 % 03/01/2024 December 31, 2014 Interest rate swap $ 10,369 $ (248 ) Other Liabilities 2.915 % 5.140 % 04/20/2016 Interest rate swap 25,000 (534 ) Other Liabilities 0.243 % 2.255 % 03/17/2021 Interest rate swap 20,000 (1,046 ) Other Liabilities 0.234 % 3.220 % 03/01/2017 Interest rate swap 20,000 (1,748 ) Other Liabilities 0.232 % 3.355 % 01/07/2020 Interest rate swap 10,000 (35 ) Other Liabilities 0.255 % 1.674 % 03/26/2019 Interest rate swap 10,000 (35 ) Other Liabilities 0.243 % 1.658 % 03/18/2019 |
Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges | The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the nine months ended September 30, 2015 , and September 30, 2014, 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) Three Months Ended September 30, 2015 Interest rate swap $ 48 Interest Expense $ (53 ) Other Income $ — Interest rate swap (574 ) Interest Expense (127 ) Other Income — Interest rate swap 78 Interest Expense (150 ) Other Income — Interest rate swap (266 ) Interest Expense (156 ) Other Income — Interest rate swap (122 ) Interest Expense (35 ) Other Income — Interest rate swap (120 ) Interest Expense (36 ) Other Income — Interest rate swap (774 ) Interest Expense — Other Income — Interest rate swap (784 ) Interest Expense — Other Income — Nine Months Ended September 30, 2015 Interest rate swap $ 137 Interest Expense $ (166 ) Other Income $ — Interest rate swap (563 ) Interest Expense (379 ) Other Income — Interest rate swap 247 Interest Expense (451 ) Other Income — Interest rate swap (198 ) Interest Expense (471 ) Other Income — Interest rate swap (173 ) Interest Expense (106 ) Other Income — Interest rate swap (171 ) Interest Expense (107 ) Other Income — Interest rate swap (283 ) Interest Expense — Other Income — Interest rate swap (332 ) Interest Expense — Other Income — Three Months Ended September 30, 2014 Interest rate swap $ 68 Interest Expense $ (63 ) Other Income $ — Interest rate swap 193 Interest Expense (129 ) Other Income — Interest rate swap 208 Interest Expense (153 ) Other Income — Interest rate swap 248 Interest Expense (158 ) Other Income — Interest rate swap 89 Interest Expense (37 ) Other Income — Interest rate swap 88 Interest Expense (37 ) Other Income — Interest rate swap — Interest Expense — Other Income — Nine Months Ended September 30, 2014 Interest rate swap $ 162 Interest Expense $ (192 ) Other Income $ — Interest rate swap (117 ) Interest Expense (258 ) Other Income — Interest rate swap 387 Interest Expense (455 ) Other Income — Interest rate swap 8 Interest Expense (473 ) Other Income — Interest rate swap 48 Interest Expense (74 ) Other Income — Interest rate swap 48 Interest Expense (73 ) Other Income — Interest rate swap 146 Interest Expense (146 ) Other Income — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Balance Sheet and Income Category | The table below identifies the balance sheet category and fair values of Heartland's derivative instruments not designated as hedging instruments at September 30, 2015 , and December 31, 2014 , in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2015 Interest rate lock commitments (mortgage) Other Assets $ 126,619 $ 4,903 Forward commitments Other Assets 117,525 833 Forward commitments Other Liabilities 309,020 (2,841 ) December 31, 2014 Interest rate lock commitments (mortgage) Other Assets $ 74,863 $ 2,496 Forward commitments Other Assets 88,484 275 Forward commitments Other Liabilities 218,337 (1,619 ) 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 three- and nine-month periods ended September 30, 2015 , and September 30, 2014, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended September 30, 2015 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ (361 ) Forward commitments Gains on sale of loans held for sale (4,237 ) Nine Months Ended September 30, 2015 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ 3,471 Forward commitments Gains on sale of loans held for sale (662 ) Three Months Ended September 30, 2014 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ (1,924 ) Forward commitments Gains on sale of loans held for sale 1,505 Nine Months Ended September 30, 2014 Interest rate lock commitments (mortgage) Gains on sale of loans held for sale $ 3,393 Forward commitments Gains on sale of loans held for sale (1,474 ) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents Heartland's assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2015 , and December 31, 2014 , in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: Total Fair Value Level 1 Level 2 Level 3 September 30, 2015 Assets Securities available for sale U.S. government corporations and agencies $ 27,020 $ 529 $ 26,491 $ — Mortgage-backed securities 1,006,349 — 1,000,309 6,040 Obligations of states and political subdivisions 214,551 — 214,551 — Corporate debt securities 580 — — 580 Equity securities 13,187 — 13,187 — Interest rate lock commitments 4,903 — — 4,903 Forward commitments 833 — 833 — Total assets at fair value $ 1,267,423 $ 529 $ 1,255,371 $ 11,523 Liabilities Derivative financial instruments $ 4,982 $ — $ 4,982 $ — Forward commitments 2,841 — 2,841 — Total liabilities at fair value $ 7,823 $ — $ 7,823 $ — December 31, 2014 Assets 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 — Corporate debt securities — — — — 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 $ — |
Fair Value Measurements, Nonrecurring | The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: Fair Value Measurements at September 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Year-to- Date Losses Collateral dependent impaired loans: Commercial $ 767 $ — $ — $ 767 $ 79 Commercial real estate 4,277 — — 4,277 57 Agricultural and agricultural real estate — — — — — Residential real estate 2,475 — — 2,475 5 Consumer 1,970 — — 1,970 — Total collateral dependent impaired loans $ 9,489 $ — $ — $ 9,489 $ 141 Other real estate owned $ 17,041 $ — $ — $ 17,041 $ 1,685 Premises, furniture and equipment held for sale $ 3,440 $ — $ — $ 3,440 $ — Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Year-to- Date Losses 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 Premises, furniture and equipment held for sale $ — $ — $ — $ — $ — |
Fair Value Inputs, Assets, Quantitative Information | The following tables present additional quantitative information about assets measured at fair value and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at 9/30/15 Valuation Technique Unobservable Input Range (Weighted Average) Z-TRANCHE Securities $ 6,040 Discounted cash flows Pretax discount rate 7.00 - 9.50% Actual defaults 17.28 - 32.60% (26.32%) Actual deferrals 4.91 - 21.20% (16.30%) Corporate debt securities 580 Discounted cash flows Bank analysis (1) Interest rate lock commitments 4,903 Discounted cash flows Closing ratio (2) Premises, furniture and equipment held for sale 3,440 Modified appraised value Third party appraisal (3) Appraisal discount (3) Collateral dependent impaired loans: Commercial 767 Modified appraised value Third party appraisal (3) Appraisal discount (3) Commercial real estate 4,277 Modified appraised value Third party appraisal (3) Appraisal discount (3) Agricultural and agricultural real estate — Modified appraised value Third party appraisal (3) Appraisal discount (3) Residential real estate 2,475 Modified appraised value Third party appraisal (3) Appraisal discount (3) Consumer 1,970 Modified appraised value Third party valuation (3) Valuation discount (3) Other real estate owned 17,041 Modified appraised value Third party appraisal (3) Appraisal discount (3) (1) The unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. (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 which 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 September 30, 2015, was 86%. (3) 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 at 12/31/14 Valuation Technique Unobservable Input Range (Weighted Average) Z-TRANCHE Securities $ 4,947 Discounted cash flows Pretax discount rate 7.00 - 9.00% Actual defaults 15.60 - 30.60% (24.50%) Actual deferrals 7.20 - 17.30% (12.90%) Corporate debt securities — Discounted cash flows Bank analysis (1) Interest rate lock commitments 2,496 Discounted cash flows Closing ratio (2) Premises, furniture and equipment held for sale — Modified appraised value Third party appraisal (3) (3) Collateral dependent impaired loans: Commercial 1,033 Modified appraised value Third party appraisal (3) Appraisal discount (3) Commercial real estate 12,584 Modified appraised value Third party appraisal (3) Appraisal discount (3) Agricultural and agricultural real estate 552 Modified appraised value Third party appraisal (3) Appraisal discount (3) Residential real estate 3,173 Modified appraised value Third party appraisal (3) Appraisal discount (3) Consumer 2,003 Modified appraised value Third party valuation (3) Valuation discount (3) Other real estate owned 19,016 Modified appraised value Third party appraisal (3) Appraisal discount (3) (1) The unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. (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 which 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) 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 on a recurring basis are summarized in the following table, in thousands: For the Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ 4,947 $ 3,298 Total gains (losses): Included in earnings — — Included in other comprehensive income 1,209 1,783 Purchases, sales and settlements: Purchases 6 — Sales — — Settlements (122 ) (134 ) Balance at period end $ 6,040 $ 4,947 The changes in fair value of the corporate debt securities, Level 3 assets, that are measured on a recurring basis is summarized in the following table, in thousands: For the Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ — $ — Total gains (losses): Included in earnings — — Included in other comprehensive income (160 ) — Purchases, acquired, sales and settlements: Purchases — — Acquired 740 — Sales — — Settlements — — Balance at period end $ 580 $ — 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 Nine Months Ended September 30, 2015 For the Year Ended December 31, 2014 Balance at January 1, $ 2,496 $ 1,809 Total gains (losses) included in earnings 3,471 2,422 Issuances 3,851 2,038 Settlements (4,915 ) (3,773 ) Balance at period end $ 4,903 $ 2,496 |
Fair Value, by Balance Sheet Grouping | The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of Heartland to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. Fair Value Measurements at September 30, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 91,105 $ 91,105 $ 91,105 $ — $ — Time deposits in other financial institutions 2,355 2,355 2,355 — — Securities: Available for sale 1,261,687 1,261,687 529 1,254,538 6,620 Held to maturity 282,200 294,622 — 294,622 — Other investments 19,292 19,292 — 19,057 235 Loans held for sale 102,569 102,569 — 102,569 — Loans, net: Commercial 1,226,694 1,223,493 — 1,222,726 767 Commercial real estate 2,043,473 2,058,649 — 2,054,372 4,277 Agricultural and agricultural real estate 465,961 469,329 — 469,329 — Residential real estate 486,782 483,793 — 481,318 2,475 Consumer 372,508 375,497 — 373,527 1,970 Total Loans, net 4,595,418 4,610,761 — 4,601,272 9,489 Interest rate lock commitments 4,903 4,903 — — 4,903 Forward commitments 833 833 — 833 — Financial liabilities: Deposits Demand deposits 1,632,005 1,632,005 — 1,632,005 — Savings deposits 2,936,611 2,936,611 — 2,936,611 — Time deposits 938,621 938,621 — 938,621 — Short term borrowings 335,845 335,845 — 335,845 — Other borrowings 302,086 305,361 — 305,361 — Derivative financial instruments 4,982 4,982 — 4,982 — Forward commitments 2,841 2,841 — 2,841 — Fair Value Measurements at December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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: 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 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 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | The following tables present financial information from Heartland's operating segments for the three and nine months ended September 30, 2015 , and September 30, 2014, in thousands. Three Months Ended September 30, 2015 2014 Community and Other Banking Retail Mortgage Banking Total Community and Other Banking Retail Mortgage Banking Total Net interest income $ 58,123 $ 1,601 $ 59,724 $ 50,790 $ 701 $ 51,491 Provision for loan losses 3,181 — 3,181 2,553 — 2,553 Total noninterest income 16,015 8,965 24,980 11,568 9,038 20,606 Total noninterest expense 49,168 12,828 61,996 43,228 11,427 54,655 Income (loss) before taxes $ 21,789 $ (2,262 ) $ 19,527 $ 16,577 $ (1,688 ) $ 14,889 Average Loans, for the period $ 4,563,221 $ 90,958 $ 4,654,179 $ 3,736,917 $ 75,301 $ 3,812,218 Segment Assets, at period end $ 6,676,526 $ 129,358 $ 6,805,884 $ 5,817,427 $ 117,382 $ 5,934,809 Nine Months Ended 2015 2014 Community Retail Total Community Retail Total Net interest income $ 167,000 $ 4,298 $ 171,298 $ 148,930 $ 1,972 $ 150,902 Provision for loan losses 10,526 — 10,526 11,635 — 11,635 Total noninterest income 48,679 37,625 86,304 35,085 25,906 60,991 Total noninterest expense 145,614 39,478 185,092 129,108 32,744 161,852 Income (loss) before taxes $ 59,539 $ 2,445 $ 61,984 $ 43,272 $ (4,866 ) $ 38,406 Average Loans, for the period $ 4,365,908 $ 91,807 $ 4,457,715 $ 3,629,822 $ 62,896 $ 3,692,718 Segment Assets, at period end $ 6,676,526 $ 129,358 $ 6,805,884 $ 5,817,427 $ 117,382 $ 5,934,809 |
Basis of Presentation (Earnings
Basis of Presentation (Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share | ||||
Net income attributable to Heartland | $ 14,582 | $ 11,973 | $ 45,451 | $ 29,637 |
Preferred dividends and discount | (205) | (205) | (613) | (613) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 14,377 | $ 11,768 | $ 44,838 | $ 29,024 |
Weighted average common shares outstanding for basic earnings per share | 20,620 | 18,469 | 20,483 | 18,456 |
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 273 | 284 | 269 | 287 |
Weighted average common shares for diluted earnings per share | 20,893 | 18,753 | 20,752 | 18,743 |
Earnings per common share — basic (in dollars per share) | $ 0.70 | $ 0.64 | $ 2.19 | $ 1.57 |
Earnings per common share — diluted (in dollars per share) | $ 0.69 | $ 0.63 | $ 2.16 | $ 1.55 |
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 0 | 94 | 0 | 94 |
Basis of Presentation (Stock-Ba
Basis of Presentation (Stock-Based Compensation) (Details) | Mar. 10, 2015shares | Jan. 20, 2015shares | Mar. 11, 2014shares | Sep. 30, 2015USD ($)equal_installments$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax benefit from equity based awards | $ 671,000 | $ 119,000 | |||
Options granted (in shares) | shares | 0 | 0 | |||
Vested options (in shares) | shares | 131,200 | 245,186 | |||
Vested options, weighted average exercise price (in dollars per share) | $ / shares | $ 24.15 | $ 23.67 | |||
Vested options, weighted average remaining contractual life | 1 year 6 months | ||||
Intrinsic value for vested options | $ 1,600,000 | ||||
Intrinsic value for the total of all options exercised | $ 829,000 | ||||
Maximum exercise period | 10 years | ||||
Cash received from options exercised | $ 1,900,000 | $ 192,000 | |||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation costs | 2,600,000 | 2,700,000 | |||
Share-based unrecognized compensation costs | 3,800,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation costs | 0 | $ 0 | |||
Share-based unrecognized compensation costs | $ 0 | ||||
Options granted (in shares) | shares | 0 | 0 | |||
Stock Options | Prior to 2009 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, award vesting periods | 5 years | ||||
Typical options expiration period after date of grant | 10 years | ||||
Stock Options | Prior to 2009 | Period One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, award vesting periods | 3 years | ||||
Stock Options | Prior to 2009 | Period Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, award vesting periods | 4 years | ||||
Stock Options | Prior to 2009 | Period Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, award vesting periods | 5 years | ||||
Long-Term Incentive Plan 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares for issuance under future awards | shares | 268,390 | ||||
Long-Term Incentive Plan 2005 | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity instruments other than options, granted (in shares) | shares | 78,220 | 67,190 | 22,648 | 33,304 | |
Share-based compensation, award vesting periods | 5 years | ||||
Award vesting, number of equal installments | equal_installments | 3 | ||||
Long-Term Incentive Plan 2005 | Performance-Based RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity instruments other than options, granted (in shares) | shares | 39,075 | 32,645 |
Basis of Presentation (Summary
Basis of Presentation (Summary of RSUs Activity) (Details) - RSUs - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | ||
Outstanding at beginning of period (in shares) | 396,555 | 353,070 |
Granted (in shares) | 139,943 | 133,139 |
Vested (in shares) | (151,681) | (74,521) |
Forfeited (in shares) | (15,636) | (7,483) |
Outstanding at end of period (in shares) | 369,181 | 404,205 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 21.48 | $ 18.62 |
Granted (in dollars per share) | 28.90 | 26.65 |
Vested (in dollars per share) | 17.98 | 16.95 |
Forfeited (in dollars per share) | 25.08 | 20.22 |
Outstanding at end of period (in dollars per share) | $ 25.56 | $ 21.44 |
Basis of Presentation (Summar32
Basis of Presentation (Summary of Stock Options Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | ||
Outstanding at beginning of period (in shares) | 215,851 | 261,936 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (81,401) | (9,750) |
Forfeited (in shares) | (3,250) | (7,000) |
Outstanding at end of period (in shares) | 131,200 | 245,186 |
Options exercisable at end of period (in shares) | 131,200 | 245,186 |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 23.85 | $ 23.60 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 23.34 | 19.67 |
Forfeited (in dollars per share) | 23.51 | 26.62 |
Outstanding at end of period (in dollars per share) | 24.15 | 23.67 |
Options exercisable at end of period (in dollars per share) | $ 24.15 | $ 23.67 |
Basis of Presentation (Addition
Basis of Presentation (Additional Information) (Details) $ in Thousands | Mar. 31, 2015USD ($) |
Adjustments for New Accounting Principle, Early Adoption | Other Borrowings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance cost reclassified from other assets | $ 550 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 22, 2015 | Sep. 11, 2015 | Aug. 21, 2015 | May. 28, 2015 | Jan. 16, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ||||||||
Assets | $ 6,805,884 | $ 6,051,812 | $ 5,934,809 | |||||
Deposits | 5,507,237 | 4,768,022 | ||||||
Loans outstanding | 4,595,418 | 3,836,554 | ||||||
Premises, furniture and equipment held for sale | 3,440 | 0 | ||||||
Nonaccrual loans | 30,965 | 24,205 | ||||||
CIC Bancshares, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets | 730,000 | |||||||
Loans | 556,000 | |||||||
Deposits | 645,000 | |||||||
CIC Bancshares, Inc. | Subsequent Event | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price in cash | $ 83,500 | |||||||
Payment in cash, percentage | 20.00% | |||||||
Payment in common stock, percentage | 80.00% | |||||||
Premier Valley Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price in cash | $ 95,000 | |||||||
Payment in cash, percentage | 30.00% | |||||||
Payment in common stock, percentage | 70.00% | |||||||
Assets | 683,000 | |||||||
Loans | 414,000 | |||||||
Deposits | 598,000 | |||||||
Purchase price (in dollars per share) | $ 7.73 | |||||||
Business combination, minimum tangible equity required | $ 58,800 | |||||||
First Scottsdale Bank, N.A. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price in cash | $ 17,700 | |||||||
Assets | 83,700 | |||||||
Loans | 56,500 | |||||||
Deposits | 65,900 | |||||||
Loans outstanding | $ 54,700 | |||||||
Community Bancorporation of New Mexico, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price in cash | $ 11,100 | |||||||
Assets | 166,500 | |||||||
Loans | 103,700 | |||||||
Deposits | 147,400 | |||||||
Loans outstanding | $ 99,500 | |||||||
Community Banc-Corp of Sheboygan, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price in cash | $ 6 | |||||||
Assets | 506,800 | |||||||
Loans | 413,400 | |||||||
Deposits | 433,900 | |||||||
Loans outstanding | $ 395,000 | |||||||
Purchase price, percentage of adjusted tangible book value | 155.00% | |||||||
Total purchase price | $ 53,058 | |||||||
Purchase price paid by delivery of shares of common stock | 1,970,720 | |||||||
Pre-tax merger related expenses | $ 1,700 | $ 1,700 | ||||||
Nonaccrual loans | $ 5,800 |
Acquisitions (Acquisition, Fair
Acquisitions (Acquisition, Fair Values) (Details) - USD ($) $ in Thousands | Jan. 16, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value of liabilities assumed | |||
Goodwill resulting from acquisition | $ 56,828 | $ 35,583 | |
Community Banc-Corp of Sheboygan, Inc. | |||
Fair value of consideration paid | |||
Common Stock | $ 53,052 | ||
Cash | 6 | ||
Total consideration paid | 53,058 | ||
Fair value of assets acquired | |||
Cash and due from banks | 7,109 | ||
Securities: | |||
Securities available for sale | 52,976 | ||
Other securities | 1,284 | ||
Loans held for sale | 728 | ||
Loans held to maturity | 395,007 | ||
Premises, furniture and equipment, net | 13,954 | ||
Other real estate, net | 346 | ||
Other intangible assets, net | 10,295 | ||
Other assets | 25,066 | ||
Total assets | 506,765 | ||
Fair value of liabilities assumed | |||
Deposits | 433,919 | ||
Short term borrowings | 24,836 | ||
Other borrowings | 6,097 | ||
Other liabilities | 7,434 | ||
Total liabilities assumed | 472,286 | ||
Fair value of net assets acquired | 34,479 | ||
Goodwill resulting from acquisition | $ 18,579 |
Acquisitions (Pro Forma) (Detai
Acquisitions (Pro Forma) (Details) - Community Banc-Corp of Sheboygan, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 220,358 | $ 179,001 |
Net income | $ 44,710 | $ 42,105 |
Basic earnings per share (in dollars per share) | $ 2.19 | $ 2.20 |
Diluted earnings per share (in dollars per share) | $ 2.16 | $ 2.17 |
Securities (Securities Availabl
Securities (Securities Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,253,607 | $ 1,396,794 |
Gross Unrealized Gains | 17,645 | 17,385 |
Gross Unrealized Losses | (9,565) | (12,311) |
Estimated Fair Value | 1,261,687 | 1,401,868 |
Total debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,240,473 | 1,391,765 |
Gross Unrealized Gains | 17,592 | 17,331 |
Gross Unrealized Losses | (9,565) | (12,311) |
Estimated Fair Value | 1,248,500 | 1,396,785 |
U.S. government corporations and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,584 | 24,010 |
Gross Unrealized Gains | 436 | 98 |
Gross Unrealized Losses | 0 | (15) |
Estimated Fair Value | 27,020 | 24,093 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,001,955 | 1,219,305 |
Gross Unrealized Gains | 13,210 | 11,929 |
Gross Unrealized Losses | (8,816) | (11,968) |
Estimated Fair Value | 1,006,349 | 1,219,266 |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 211,194 | 148,450 |
Gross Unrealized Gains | 3,946 | 5,304 |
Gross Unrealized Losses | (589) | (328) |
Estimated Fair Value | 214,551 | 153,426 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 740 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (160) | 0 |
Estimated Fair Value | 580 | 0 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,134 | 5,029 |
Gross Unrealized Gains | 53 | 54 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 13,187 | $ 5,083 |
Securities (Held to Maturity Se
Securities (Held to Maturity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 282,200 | $ 284,587 |
Gross Unrealized Gains | 14,226 | 13,793 |
Gross Unrealized Losses | (1,804) | (1,612) |
Estimated Fair Value | 294,622 | 296,768 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,482 | 5,734 |
Gross Unrealized Gains | 178 | 217 |
Gross Unrealized Losses | (945) | (667) |
Estimated Fair Value | 4,715 | 5,284 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 276,718 | 278,853 |
Gross Unrealized Gains | 14,048 | 13,576 |
Gross Unrealized Losses | (859) | (945) |
Estimated Fair Value | $ 289,907 | $ 291,484 |
Securities (Securities Availa39
Securities (Securities Available for Sale (Debt Maturities)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due in 1 year or less | $ 3,831 | |
Due in 1 to 5 years | 40,492 | |
Due in 5 to 10 years | 63,734 | |
Due after 10 years | 130,461 | |
Total debt securities | 238,518 | |
Mortgage-backed securities | 1,001,955 | |
Equity securities | 13,134 | |
Amortized Cost | 1,253,607 | $ 1,396,794 |
Estimated Fair Value | ||
Due in 1 year or less | 3,839 | |
Due in 1 to 5 years | 40,749 | |
Due in 5 to 10 years | 64,596 | |
Due after 10 years | 132,967 | |
Total debt securities | 242,151 | |
Mortgage-backed securities | 1,006,349 | |
Equity securities | 13,187 | |
Estimated Fair Value | $ 1,261,687 | $ 1,401,868 |
Securities (Securities Held to
Securities (Securities Held to Maturity (Debt Maturities)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due in 1 year or less | $ 5,290 | |
Due in 1 to 5 years | 13,881 | |
Due in 5 to 10 years | 59,706 | |
Due after 10 years | 197,841 | |
Total debt securities | 276,718 | |
Mortgage-backed securities | 5,482 | |
Amortized Cost | 282,200 | $ 284,587 |
Estimated Fair Value | ||
Due in 1 year or less | 5,367 | |
Due in 1 to 5 years | 14,620 | |
Due in 5 to 10 years | 62,884 | |
Due after 10 years | 207,036 | |
Total debt securities | 289,907 | |
Mortgage-backed securities | 4,715 | |
Estimated Fair Value | $ 294,622 | $ 296,768 |
Securities (Realized Gain (Loss
Securities (Realized Gain (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 351,050 | $ 189,939 | $ 877,077 | $ 699,830 |
Gross security gains | 2,416 | 1,101 | 10,857 | 4,547 |
Gross security losses | $ 609 | $ 276 | $ 1,587 | $ 2,087 |
Securities (Available for Sale
Securities (Available for Sale Securities Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than 12 months | $ 414,970 | $ 334,291 |
12 months or longer | 120,800 | 326,585 |
Total | 535,770 | 660,876 |
Unrealized Losses | ||
Less than 12 months | (7,841) | (7,412) |
12 months or longer | (1,724) | (4,899) |
Total | (9,565) | (12,311) |
U.S. government corporations and agencies | ||
Fair Value | ||
Less than 12 months | 0 | 6,042 |
12 months or longer | 0 | 0 |
Total | 0 | 6,042 |
Unrealized Losses | ||
Less than 12 months | 0 | (15) |
12 months or longer | 0 | 0 |
Total | 0 | (15) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 381,863 | 327,363 |
12 months or longer | 110,908 | 306,078 |
Total | 492,771 | 633,441 |
Unrealized Losses | ||
Less than 12 months | (7,239) | (7,391) |
12 months or longer | (1,577) | (4,577) |
Total | (8,816) | (11,968) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 32,527 | 886 |
12 months or longer | 9,892 | 20,507 |
Total | 42,419 | 21,393 |
Unrealized Losses | ||
Less than 12 months | (442) | (6) |
12 months or longer | (147) | (322) |
Total | (589) | (328) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 580 | 0 |
12 months or longer | 0 | 0 |
Total | 580 | 0 |
Unrealized Losses | ||
Less than 12 months | (160) | 0 |
12 months or longer | 0 | 0 |
Total | $ (160) | $ 0 |
Securities (Held to Maturity 43
Securities (Held to Maturity Securities Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than 12 months | $ 11,258 | $ 3,172 |
12 months or longer | 20,052 | 32,163 |
Total | 31,310 | 35,335 |
Unrealized Losses | ||
Less than 12 months | (70) | (422) |
12 months or longer | (1,734) | (1,190) |
Total | (1,804) | (1,612) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or longer | 1,832 | 2,761 |
Total | 1,832 | 2,761 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (945) | (667) |
Total | (945) | (667) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 11,258 | 3,172 |
12 months or longer | 18,220 | 29,402 |
Total | 29,478 | 32,574 |
Unrealized Losses | ||
Less than 12 months | (70) | (422) |
12 months or longer | (789) | (523) |
Total | $ (859) | $ (945) |
Securities (Other-Than-Temporar
Securities (Other-Than-Temporary Impairments) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2012USD ($)security | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||||
OTTI write-downs included in earnings, available for sale debt securities | $ 184,000 | $ 184,000 | $ 184,000 | |||
Number of investments with OTTI | security | 3 | |||||
OTTI write-downs included in earnings, held to maturity debt securities | $ 797,000 | |||||
Gross realized gains (losses) on sale of available for sale securities with OTTI write-downs | 0 | 0 | ||||
Recorded as part of gross realized losses: | ||||||
Credit related OTTI | $ 0 | $ 0 | 0 | $ 0 | ||
Intent to sell OTTI | 0 | 0 | 0 | 0 | ||
Total recorded as part of gross realized losses | $ 981,000 | 0 | 0 | 0 | 0 | |
Recorded directly to AOCI for non-credit related impairment: | ||||||
Residential mortgage backed securities | 0 | 0 | 0 | 0 | ||
Accretion of non-credit related impairment | (24,000) | (24,000) | (72,000) | (72,000) | ||
Total changes to AOCI for non-credit related impairment | (24,000) | (24,000) | (72,000) | (72,000) | ||
Total OTTI losses (accretion) recorded on debt securities, net | (24,000) | $ (24,000) | (72,000) | $ (72,000) | ||
Held-to-maturity Securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Credit related OTTI | 797,000 | 797,000 | 797,000 | |||
Non-credit related OTTI | $ 351,000 | $ 351,000 | $ 422,000 |
Securities (Other Securities) (
Securities (Other Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
FHLB | $ 13.3 | $ 14.3 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Investment [Line Items] | ||
Percentage of mortgage-backed securities issued by government-sponsored enterprises | 80.00% |
Loans and Leases (Loans and lea
Loans and Leases (Loans and leases receivable) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | $ 4,644,049 | $ 3,877,863 |
Unearned discount | (478) | (90) |
Deferred loan fees | (1,048) | (1,028) |
Total net loans and leases receivable held to maturity | 4,642,523 | 3,876,745 |
Total loans covered under loss share agreements | 0 | 1,258 |
Allowance for loan and lease losses | (47,105) | (41,449) |
Loans and leases receivable, net | 4,595,418 | 3,836,554 |
Loans secured by residential real estate property in process of foreclosure | 950 | |
Commercial | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | 1,240,956 | 1,036,080 |
Commercial real estate | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | 2,062,142 | 1,707,060 |
Agricultural and agricultural real estate | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | 469,381 | 423,827 |
Total loans covered under loss share agreements | 0 | 0 |
Residential real estate | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | 491,667 | 380,341 |
Total loans covered under loss share agreements | $ 0 | 1,204 |
Residential real estate | Minimum | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 10 years | |
Residential real estate | Maximum | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 30 years | |
Consumer | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | $ 379,903 | 330,555 |
Total loans covered under loss share agreements | $ 0 | 0 |
Consumer | Citizens Finance Co | Loans and Finance Receivables | ||
Loans and Leases [Line Items] | ||
Concentration risk, percentage | 20.00% | |
Gross loans and leases receivable held to maturity | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | $ 4,644,049 | 3,877,863 |
Commercial and commercial real estate | ||
Loans and Leases [Line Items] | ||
Gross loans and leases receivable held to maturity | 3,303,098 | 2,743,140 |
Total loans covered under loss share agreements | $ 0 | $ 54 |
Commercial and commercial real estate | Minimum | ||
Loans and Leases [Line Items] | ||
Length of loan agreements | 1 year | |
Commercial and commercial real estate | Maximum | ||
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 receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | $ 2,502 | $ 2,697 | ||||
Ending Balance Under ASC 450-20 | 44,603 | 38,752 | ||||
Total | 47,105 | $ 45,614 | 41,449 | $ 41,698 | $ 40,892 | $ 41,685 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 76,933 | 61,724 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 4,567,116 | 3,816,139 | ||||
Total | 4,644,049 | 3,877,863 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | 388 | 754 | ||||
Ending Balance Under ASC 450-20 | 13,522 | 11,155 | ||||
Total | 13,910 | 13,064 | 11,909 | 11,355 | 11,927 | 13,099 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 8,386 | 4,526 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 1,232,570 | 1,031,554 | ||||
Total | 1,240,956 | 1,036,080 | ||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | 645 | 636 | ||||
Ending Balance Under ASC 450-20 | 17,441 | 15,262 | ||||
Total | 18,086 | 17,608 | 15,898 | 16,145 | 14,680 | 14,152 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 43,682 | 35,771 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 2,018,460 | 1,671,289 | ||||
Total | 2,062,142 | 1,707,060 | ||||
Agricultural and agricultural real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | 40 | 52 | ||||
Ending Balance Under ASC 450-20 | 3,899 | 3,243 | ||||
Total | 3,939 | 3,676 | 3,295 | 3,116 | 2,788 | 2,992 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 5,916 | 5,049 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 463,465 | 418,778 | ||||
Total | 469,381 | 423,827 | ||||
Residential real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | 372 | 442 | ||||
Ending Balance Under ASC 450-20 | 3,474 | 3,299 | ||||
Total | 3,846 | 4,099 | 3,741 | 3,623 | 3,815 | 3,720 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 14,024 | 10,235 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 477,643 | 370,106 | ||||
Total | 491,667 | 380,341 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Ending Balance Under ASC 310-10-35 | 1,057 | 813 | ||||
Ending Balance Under ASC 450-20 | 6,267 | 5,793 | ||||
Total | 7,324 | $ 7,167 | 6,606 | $ 7,253 | $ 7,516 | $ 7,722 |
Ending Balance Evaluated for Impairment Under ASC 310-10-35 | 4,925 | 6,143 | ||||
Ending Balance Evaluated for Impairment Under ASC 450-20 | 374,978 | 324,412 | ||||
Total | $ 379,903 | $ 330,555 |
Loans and Leases (Financing rec
Loans and Leases (Financing receivables, non accrual status) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Nonaccrual loans | $ 30,965 | $ 24,205 |
Nonaccrual troubled debt restructured loans | 1,612 | 865 |
Total nonaccrual loans | 32,577 | 25,070 |
Accruing loans past due 90 days or more | 1,181 | 0 |
Performing troubled debt restructured loans | $ 10,154 | $ 12,133 |
Loans and Leases (Troubled debt
Loans and Leases (Troubled debt restructuring on loans modified) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 1 | 4 | 5 |
Pre- Modification Recorded Investment | $ 55 | $ 60 | $ 5,188 | $ 3,753 |
Post- Modification Recorded Investment | $ 55 | $ 60 | $ 5,188 | $ 3,753 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 0 |
Pre- Modification Recorded Investment | $ 0 | $ 0 | $ 830 | $ 0 |
Post- Modification Recorded Investment | $ 0 | $ 0 | $ 830 | $ 0 |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 1 |
Pre- Modification Recorded Investment | $ 0 | $ 0 | $ 3,992 | $ 298 |
Post- Modification Recorded Investment | $ 0 | $ 0 | $ 3,992 | $ 298 |
Commercial and commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 2 | 1 |
Pre- Modification Recorded Investment | $ 0 | $ 0 | $ 4,822 | $ 298 |
Post- Modification Recorded Investment | $ 0 | $ 0 | $ 4,822 | $ 298 |
Agricultural and agricultural real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 1 | 3 |
Pre- Modification Recorded Investment | $ 0 | $ 60 | $ 311 | $ 3,417 |
Post- Modification Recorded Investment | $ 0 | $ 60 | $ 311 | $ 3,417 |
Residential real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 1 | 1 |
Pre- Modification Recorded Investment | $ 55 | $ 0 | $ 55 | $ 38 |
Post- Modification Recorded Investment | $ 55 | $ 0 | $ 55 | $ 38 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre- Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post- Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Leases (Troubled de50
Loans and Leases (Troubled debt restructuring with payment default) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 1 | 1 | 1 | 1 |
Recorded Investment | $ | $ 814 | $ 60 | $ 814 | $ 60 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 1 | 0 | 1 | 0 |
Recorded Investment | $ | $ 814 | $ 0 | $ 814 | $ 0 |
Commercial and commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 1 | 0 | 1 | 0 |
Recorded Investment | $ | $ 814 | $ 0 | $ 814 | $ 0 |
Agricultural and agricultural real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 1 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 60 | $ 0 | $ 60 |
Residential real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Leases (Troubled de51
Loans and Leases (Troubled debt in text) (Details) | Sep. 30, 2015loan |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans classified as doubtful or loss | 0 |
Doubtful | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of loans classified as doubtful or loss | 0 |
Loans and Leases (Loans and l52
Loans and Leases (Loans and leases not covered by share agreements (credit quality indicator)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | $ 4,644,049 | $ 3,877,863 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 1,240,956 | 1,036,080 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 2,062,142 | 1,707,060 |
Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 3,303,098 | 2,743,140 |
Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 469,381 | 423,827 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 491,667 | 380,341 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 379,903 | 330,555 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 4,257,492 | 3,592,750 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 1,093,853 | 939,717 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 1,878,579 | 1,567,711 |
Pass | Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 2,972,432 | 2,507,428 |
Pass | Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 443,460 | 402,883 |
Pass | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 470,332 | 361,325 |
Pass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 371,268 | 321,114 |
Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 386,557 | 285,113 |
Nonpass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 147,103 | 96,363 |
Nonpass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 183,563 | 139,349 |
Nonpass | Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 330,666 | 235,712 |
Nonpass | Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 25,921 | 20,944 |
Nonpass | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | 21,335 | 19,016 |
Nonpass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases receivable held to maturity | $ 8,635 | $ 9,441 |
Loans and Leases (Loans and l53
Loans and Leases (Loans and leases not covered by share agreements (in text)) (Details) | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans delinquent 30 to 89 days, percentage | 0.40% | 0.21% |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans | 69.00% | 66.00% |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans | 31.00% | 34.00% |
Nonpass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of nonaccrual loans | 8.00% | 9.00% |
Loans and Leases (Loans and l54
Loans and Leases (Loans and leases not covered by share agreements (past due financing receivables)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | $ 19,637 | $ 8,326 |
Accruing Loans and Leases, Current | 4,591,835 | 3,844,467 |
Nonaccrual | 32,577 | 25,070 |
Total | 4,644,049 | 3,877,863 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 2,041 | 1,028 |
Accruing Loans and Leases, Current | 1,235,294 | 1,032,707 |
Nonaccrual | 3,621 | 2,345 |
Total | 1,240,956 | 1,036,080 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 8,480 | 1,899 |
Accruing Loans and Leases, Current | 2,040,177 | 1,693,554 |
Nonaccrual | 13,485 | 11,607 |
Total | 2,062,142 | 1,707,060 |
Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 10,521 | 2,927 |
Accruing Loans and Leases, Current | 3,275,471 | 2,726,261 |
Nonaccrual | 17,106 | 13,952 |
Total | 3,303,098 | 2,743,140 |
Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 307 | 169 |
Accruing Loans and Leases, Current | 466,607 | 422,219 |
Nonaccrual | 2,467 | 1,439 |
Total | 469,381 | 423,827 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 2,653 | 1,482 |
Accruing Loans and Leases, Current | 478,464 | 371,982 |
Nonaccrual | 10,550 | 6,877 |
Total | 491,667 | 380,341 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 6,156 | 3,748 |
Accruing Loans and Leases, Current | 371,293 | 324,005 |
Nonaccrual | 2,454 | 2,802 |
Total | 379,903 | 330,555 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 14,895 | 6,306 |
30-59 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,729 | 980 |
30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 6,115 | 1,788 |
30-59 Days Past Due | Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 7,844 | 2,768 |
30-59 Days Past Due | Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 223 | 119 |
30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 2,118 | 1,037 |
30-59 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 4,710 | 2,382 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 3,561 | 2,020 |
60-89 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 21 | 48 |
60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,475 | 111 |
60-89 Days Past Due | Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,496 | 159 |
60-89 Days Past Due | Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 84 | 50 |
60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 535 | 445 |
60-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,446 | 1,366 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,181 | 0 |
90 Days or More Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 291 | 0 |
90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 890 | 0 |
90 Days or More Past Due | Commercial and commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 1,181 | 0 |
90 Days or More Past Due | Agricultural and agricultural real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 0 | 0 |
90 Days or More Past Due | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | 0 | 0 |
90 Days or More Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans and Leases, Past Due | $ 0 | $ 0 |
Loans and Leases (Impaired loan
Loans and Leases (Impaired loans not covered by loss share agreements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | $ 12,453 | $ 12,453 | $ 16,664 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 68,487 | 68,487 | 53,132 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 80,940 | 80,940 | 69,796 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 12,024 | 12,024 | 16,462 |
Impaired loans without a related allowance, Loan Balance | 64,909 | 64,909 | 45,262 |
Total impaired loans held to maturity, Loan Balance | 76,933 | 76,933 | 61,724 |
Impaired loans, Related Allowance Recorded | 2,502 | 2,502 | 2,697 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 10,914 | 10,933 | 22,942 |
Impaired loans without a related allowance, Avg. Loan Balance | 66,762 | 56,672 | 39,466 |
Total impaired loans held to maturity, Avg. Loan Balance | 77,676 | 67,605 | 62,408 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 110 | 184 | 457 |
Impaired loans without a related allowance, Interest Income Recognized | 516 | 1,450 | 1,523 |
Total impaired loans held to maturity, Interest Income Recognized | 626 | 1,634 | 1,980 |
Commercial | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 1,200 | 1,200 | 780 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 7,518 | 7,518 | 4,913 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 8,718 | 8,718 | 5,693 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 948 | 948 | 780 |
Impaired loans without a related allowance, Loan Balance | 7,438 | 7,438 | 3,746 |
Total impaired loans held to maturity, Loan Balance | 8,386 | 8,386 | 4,526 |
Impaired loans, Related Allowance Recorded | 388 | 388 | 754 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 394 | 383 | 5,594 |
Impaired loans without a related allowance, Avg. Loan Balance | 9,759 | 7,050 | 3,499 |
Total impaired loans held to maturity, Avg. Loan Balance | 10,153 | 7,433 | 9,093 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 3 | 9 | 19 |
Impaired loans without a related allowance, Interest Income Recognized | 100 | 274 | 101 |
Total impaired loans held to maturity, Interest Income Recognized | 103 | 283 | 120 |
Commercial real estate | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 2,384 | 2,384 | 7,356 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 44,758 | 44,758 | 32,708 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 47,142 | 47,142 | 40,064 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 2,384 | 2,384 | 7,322 |
Impaired loans without a related allowance, Loan Balance | 41,298 | 41,298 | 28,449 |
Total impaired loans held to maturity, Loan Balance | 43,682 | 43,682 | 35,771 |
Impaired loans, Related Allowance Recorded | 645 | 645 | 636 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 1,243 | 2,028 | 5,931 |
Impaired loans without a related allowance, Avg. Loan Balance | 42,476 | 36,149 | 24,522 |
Total impaired loans held to maturity, Avg. Loan Balance | 43,719 | 38,177 | 30,453 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 10 | 20 | 303 |
Impaired loans without a related allowance, Interest Income Recognized | 397 | 1,055 | 1,172 |
Total impaired loans held to maturity, Interest Income Recognized | 407 | 1,075 | 1,475 |
Commercial and commercial real estate | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 3,584 | 3,584 | 8,136 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 52,276 | 52,276 | 37,621 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 55,860 | 55,860 | 45,757 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 3,332 | 3,332 | 8,102 |
Impaired loans without a related allowance, Loan Balance | 48,736 | 48,736 | 32,195 |
Total impaired loans held to maturity, Loan Balance | 52,068 | 52,068 | 40,297 |
Impaired loans, Related Allowance Recorded | 1,033 | 1,033 | 1,390 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 1,637 | 2,411 | 11,525 |
Impaired loans without a related allowance, Avg. Loan Balance | 52,235 | 43,199 | 28,021 |
Total impaired loans held to maturity, Avg. Loan Balance | 53,872 | 45,610 | 39,546 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 13 | 29 | 322 |
Impaired loans without a related allowance, Interest Income Recognized | 497 | 1,329 | 1,273 |
Total impaired loans held to maturity, Interest Income Recognized | 510 | 1,358 | 1,595 |
Agricultural and agricultural real estate | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 3,196 | 3,196 | 3,317 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 2,720 | 2,720 | 3,961 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 5,916 | 5,916 | 7,278 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 3,196 | 3,196 | 3,317 |
Impaired loans without a related allowance, Loan Balance | 2,720 | 2,720 | 1,732 |
Total impaired loans held to maturity, Loan Balance | 5,916 | 5,916 | 5,049 |
Impaired loans, Related Allowance Recorded | 40 | 40 | 52 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 3,281 | 3,058 | 3,966 |
Impaired loans without a related allowance, Avg. Loan Balance | 2,197 | 2,106 | 3,308 |
Total impaired loans held to maturity, Avg. Loan Balance | 5,478 | 5,164 | 7,274 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 85 | 123 | 104 |
Impaired loans without a related allowance, Interest Income Recognized | 0 | 9 | 13 |
Total impaired loans held to maturity, Interest Income Recognized | 85 | 132 | 117 |
Residential real estate | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 2,637 | 2,637 | 2,412 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 11,593 | 11,593 | 8,200 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 14,230 | 14,230 | 10,612 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 2,469 | 2,469 | 2,244 |
Impaired loans without a related allowance, Loan Balance | 11,555 | 11,555 | 7,991 |
Total impaired loans held to maturity, Loan Balance | 14,024 | 14,024 | 10,235 |
Impaired loans, Related Allowance Recorded | 372 | 372 | 442 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 2,860 | 2,619 | 3,398 |
Impaired loans without a related allowance, Avg. Loan Balance | 10,305 | 8,936 | 6,267 |
Total impaired loans held to maturity, Avg. Loan Balance | 13,165 | 11,555 | 9,665 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 7 | 16 | 12 |
Impaired loans without a related allowance, Interest Income Recognized | 15 | 85 | 110 |
Total impaired loans held to maturity, Interest Income Recognized | 22 | 101 | 122 |
Consumer | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a related allowance, Unpaid Contractual Balance | 3,036 | 3,036 | 2,799 |
Impaired loans without a related allowance, Unpaid Contractual Balance | 1,898 | 1,898 | 3,350 |
Total impaired loans held to maturity, Unpaid Contractual Balance | 4,934 | 4,934 | 6,149 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Loan Balance | 3,027 | 3,027 | 2,799 |
Impaired loans without a related allowance, Loan Balance | 1,898 | 1,898 | 3,344 |
Total impaired loans held to maturity, Loan Balance | 4,925 | 4,925 | 6,143 |
Impaired loans, Related Allowance Recorded | 1,057 | 1,057 | 813 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a related allowance, Avg. Loan Balance | 3,136 | 2,845 | 4,053 |
Impaired loans without a related allowance, Avg. Loan Balance | 2,025 | 2,431 | 1,870 |
Total impaired loans held to maturity, Avg. Loan Balance | 5,161 | 5,276 | 5,923 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a related allowance, Interest Income Recognized | 5 | 16 | 19 |
Impaired loans without a related allowance, Interest Income Recognized | 4 | 27 | 127 |
Total impaired loans held to maturity, Interest Income Recognized | $ 9 | $ 43 | $ 146 |
Loans and Leases (Purchased imp
Loans and Leases (Purchased impaired loans (in text)) (Details) - USD ($) $ in Millions | Sep. 11, 2015 | Aug. 21, 2015 | Jan. 16, 2015 |
Community Banc-Corp of Sheboygan, Inc. | |||
Financing Receivable, Impaired [Line Items] | |||
Loans | $ 413.4 | ||
Estimated fair value of loans acquired | $ 395 | ||
Community Bancorporation of New Mexico, Inc. | |||
Financing Receivable, Impaired [Line Items] | |||
Loans | $ 103.7 | ||
Estimated fair value of loans acquired | $ 99.5 | ||
First Scottsdale Bank, N.A. | |||
Financing Receivable, Impaired [Line Items] | |||
Loans | $ 56.5 | ||
Estimated fair value of loans acquired | $ 54.7 |
Loans and Leases (Carrying amou
Loans and Leases (Carrying amount loans not covered by loss share agreements) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | $ 6,561 |
Non Impaired Purchased Loans | 444,193 |
Total Purchased Loans | 450,754 |
Commercial | |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | 0 |
Non Impaired Purchased Loans | 93,304 |
Total Purchased Loans | 93,304 |
Commercial real estate | |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | 6,561 |
Non Impaired Purchased Loans | 270,229 |
Total Purchased Loans | 276,790 |
Agricultural and agricultural real estate | |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | 0 |
Non Impaired Purchased Loans | 2,788 |
Total Purchased Loans | 2,788 |
Residential real estate | |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | 0 |
Non Impaired Purchased Loans | 49,816 |
Total Purchased Loans | 49,816 |
Consumer | |
Loans covered by loss share agreement (carrying amount) [Line Items] | |
Impaired Purchased Loans | 0 |
Non Impaired Purchased Loans | 28,056 |
Total Purchased Loans | $ 28,056 |
Loans and Leases (Carrying am58
Loans and Leases (Carrying amount loans not covered by loss share agreements (in text)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jan. 16, 2015 | Dec. 31, 2014 | Jul. 02, 2009 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 47,105 | $ 41,449 | ||
Elizabeth State Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contractually required payments of loans acquired | $ 42,700 | |||
Estimated fair value of loans acquired | $ 37,800 | |||
Community Banc-Corp of Sheboygan, Inc. | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contractually required payments of loans acquired | $ 14,700 | |||
Estimated fair value of loans acquired | 9,300 | |||
Allowance for loan and lease losses | $ 116 | |||
Contractually required payments receivable of nonimpaired loans | 558,400 | |||
Estimated fair value of nonimpaired loans acquired | $ 539,900 |
Allowance for Loan and Lease 59
Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | $ 45,614 | $ 40,892 | $ 41,449 | $ 41,685 |
Charge-offs | (2,439) | (2,649) | (7,177) | (14,707) |
Recoveries | 749 | 902 | 2,307 | 3,085 |
Provision | 3,181 | 2,553 | 10,526 | 11,635 |
Ending Balance | 47,105 | 41,698 | 47,105 | 41,698 |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 13,064 | 11,927 | 11,909 | 13,099 |
Charge-offs | (869) | (875) | (1,825) | (7,940) |
Recoveries | 87 | 145 | 518 | 552 |
Provision | 1,628 | 158 | 3,308 | 5,644 |
Ending Balance | 13,910 | 11,355 | 13,910 | 11,355 |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 17,608 | 14,680 | 15,898 | 14,152 |
Charge-offs | (376) | (295) | (1,080) | (1,379) |
Recoveries | 357 | 539 | 853 | 1,833 |
Provision | 497 | 1,221 | 2,415 | 1,539 |
Ending Balance | 18,086 | 16,145 | 18,086 | 16,145 |
Agricultural | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 3,676 | 2,788 | 3,295 | 2,992 |
Charge-offs | 0 | (338) | (551) | (1,974) |
Recoveries | 5 | 5 | 29 | 9 |
Provision | 258 | 661 | 1,166 | 2,089 |
Ending Balance | 3,939 | 3,116 | 3,939 | 3,116 |
Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 4,099 | 3,815 | 3,741 | 3,720 |
Charge-offs | (13) | (21) | (126) | (225) |
Recoveries | 71 | 29 | 178 | 85 |
Provision | (311) | (200) | 53 | 43 |
Ending Balance | 3,846 | 3,623 | 3,846 | 3,623 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 7,167 | 7,516 | 6,606 | 7,722 |
Charge-offs | (1,181) | (1,120) | (3,595) | (3,189) |
Recoveries | 229 | 184 | 729 | 606 |
Provision | 1,109 | 673 | 3,584 | 2,114 |
Ending Balance | 7,324 | 7,253 | 7,324 | 7,253 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 0 | 166 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 0 | 40 | 0 | 206 |
Ending Balance | $ 0 | $ 206 | $ 0 | $ 206 |
Goodwill, Core Deposit Premiu60
Goodwill, Core Deposit Premium and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | Sep. 11, 2015 | Aug. 21, 2015 | Jan. 16, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||||
Goodwill | $ 56,828 | $ 35,583 | |||
Community Banc-Corp of Sheboygan, Inc. | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 18,579 | ||||
Community Banc-Corp of Sheboygan, Inc. | Core Deposits | |||||
Goodwill [Line Items] | |||||
Intangibles recognized | $ 6,000 | ||||
Intangibles, amortization period | 10 years | ||||
Community Banc-Corp of Sheboygan, Inc. | Commercial Servicing Rights | |||||
Goodwill [Line Items] | |||||
Intangibles recognized | $ 4,300 | ||||
Community Bancorporation of New Mexico, Inc. | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 213 | ||||
Community Bancorporation of New Mexico, Inc. | Core Deposits | |||||
Goodwill [Line Items] | |||||
Intangibles recognized | $ 1,700 | ||||
Intangibles, amortization period | 10 years | ||||
First Scottsdale Bank, N.A. | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 2,500 | ||||
First Scottsdale Bank, N.A. | Core Deposits | |||||
Goodwill [Line Items] | |||||
Intangibles recognized | $ 357 | ||||
Intangibles, amortization period | 10 years |
Goodwill, Core Deposit Premiu61
Goodwill, Core Deposit Premium and Other Intangible Assets (Carrying amount of intangible assets (incl accumulated amortization) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 79,440 | $ 60,071 |
Accumulated Amortization | 30,745 | 26,139 |
Net Carrying Amount | 48,695 | 33,932 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 29,138 | 21,069 |
Accumulated Amortization | 14,572 | 12,525 |
Net Carrying Amount | 14,566 | 8,544 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44,166 | 37,825 |
Accumulated Amortization | 14,566 | 12,841 |
Net Carrying Amount | 29,600 | 24,984 |
Customer relationship intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,177 | 1,177 |
Accumulated Amortization | 805 | 773 |
Net Carrying Amount | 372 | 404 |
Commercial servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,959 | 0 |
Accumulated Amortization | 802 | 0 |
Net Carrying Amount | $ 4,157 | $ 0 |
Goodwill, Core Deposit Premiu62
Goodwill, Core Deposit Premium and Other Intangible Assets (Estimated future amortization expense for amortizable intangible assets) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2015 | $ 3,074 |
Year ending December 31, | |
2,016 | 10,557 |
2,017 | 9,208 |
2,018 | 7,852 |
2,019 | 6,417 |
2,020 | 4,968 |
Thereafter | 6,619 |
Total | 48,695 |
Core deposit intangibles | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2015 | 755 |
Year ending December 31, | |
2,016 | 2,772 |
2,017 | 2,452 |
2,018 | 2,169 |
2,019 | 1,886 |
2,020 | 1,619 |
Thereafter | 2,913 |
Total | 14,566 |
Mortgage servicing rights | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2015 | 2,087 |
Year ending December 31, | |
2,016 | 6,878 |
2,017 | 5,896 |
2,018 | 4,913 |
2,019 | 3,930 |
2,020 | 2,948 |
Thereafter | 2,948 |
Total | 29,600 |
Customer relationship intangible | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2015 | 11 |
Year ending December 31, | |
2,016 | 41 |
2,017 | 40 |
2,018 | 39 |
2,019 | 38 |
2,020 | 37 |
Thereafter | 166 |
Total | 372 |
Commercial servicing rights | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2015 | 221 |
Year ending December 31, | |
2,016 | 866 |
2,017 | 820 |
2,018 | 731 |
2,019 | 563 |
2,020 | 364 |
Thereafter | 592 |
Total | $ 4,157 |
Goodwill, Core Deposit Premiu63
Goodwill, Core Deposit Premium and Other Intangible Assets (Mortgage loans servicing) (Details) - USD ($) | Jan. 16, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Valuation servicing rights in tranches [Line Items] | ||||
Mortgage loans serviced for others | $ 3,960,000,000 | $ 3,500,000,000 | ||
Valuation allowance | 0 | 0 | ||
Mortgage Servicing Rights | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Servicing asset at amortized value | $ 40,166,000 | $ 33,260,000 | $ 34,200,000 | |
Prepayment rate | 10.79% | 11.40% | ||
Discount rate | 9.23% | 9.20% | ||
Fees collected for servicing of mortgage loans | $ 7,800,000 | 6,400,000 | ||
Mortgage Servicing Rights | Minimum | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Average cap rate | 0.65% | 0.75% | ||
Mortgage Servicing Rights | Maximum | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Average cap rate | 1.38% | 1.39% | ||
Mortgage Servicing Rights 15-year Tranche | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Servicing asset, agreement term | 15 years | |||
Mortgage Servicing Rights 30-year Tranche | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Servicing asset, agreement term | 30 years | |||
Commercial Servicing Rights | ||||
Valuation servicing rights in tranches [Line Items] | ||||
Servicing asset at amortized value | $ 4,412,000 | $ 0 | ||
Fees collected for servicing of mortgage loans | $ 438,000 | |||
Loans serviced for Small Business Administration and US Department of Agriculture | $ 158,800,000 |
Goodwill, Core Deposit Premiu64
Goodwill, Core Deposit Premium and Other Intangible Assets (Changes in capitalized mortgage and commercial servicing rights) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at January 1 | $ 24,984 | $ 21,788 | |
Originations | 11,062 | 5,955 | |
Amortization | (6,446) | (3,778) | |
Balance at September 30 | 29,600 | 23,965 | |
Fair value of servicing rights | $ 40,166 | $ 33,260 | $ 34,200 |
Servicing rights, net to servicing portfolio (as a percent) | 0.75% | 0.71% | |
Commercial servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at January 1 | $ 0 | $ 0 | |
Purchased commercial servicing rights | 4,255 | 0 | |
Originations | 704 | 0 | |
Amortization | (802) | 0 | |
Balance at September 30 | 4,157 | 0 | |
Fair value of servicing rights | $ 4,412 | $ 0 | |
Servicing rights, net to servicing portfolio (as a percent) | 2.33% | 0.00% |
Derivative Financial Instrume65
Derivative Financial Instruments (Cash collateral on derivative financial instruments) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Cash pledged as collateral | $ 7,000,000 | $ 5,300,000 |
Counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $ 0 | $ 0 |
Derivative Financial Instrume66
Derivative Financial Instruments (Estimated cash payments and reclassification to interest expense) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Change in net unrealized losses on cash flow hedges | $ 1.7 |
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense within the next twelve months | $ 2.2 |
Derivative Financial Instrume67
Derivative Financial Instruments (Executed interest rate swap) (Details) - Derivative Financial Instruments $ in Millions | Sep. 30, 2015USD ($)transaction | Mar. 31, 2015USD ($)transaction | Apr. 20, 2011USD ($) |
Derivative [Line Items] | |||
Derivative, notional amount | $ 15 | ||
Heartland Financial Statutory Trust VI | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 20 | ||
Number of swap transactions | transaction | 2 | ||
Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 85 | ||
Number of swap transactions | transaction | 3 | ||
Cash Flow Hedges | Heartland Financial Statutory Trust IV, V and VII | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 65 | ||
Cash Flow Hedges | Morrill Statutory Trust I and II | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 20 |
Derivative Financial Instrume68
Derivative Financial Instruments (Balance sheet category and fair values of derivative instruments (cash flow hedges)) (Details) - Other Liabilities - Interest Rate Swap - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 9,309 | $ 10,369 |
Fair Value | $ (111) | $ (248) |
Receive Rate | 2.966% | 2.915% |
Weighted Average Pay Rate | 5.14% | 5.14% |
Notional Amount | $ 25,000 | $ 25,000 |
Fair Value | $ (1,097) | $ (534) |
Receive Rate | 0.334% | 0.243% |
Weighted Average Pay Rate | 2.255% | 2.255% |
Notional Amount | $ 20,000 | $ 20,000 |
Fair Value | $ (799) | $ (1,046) |
Receive Rate | 0.324% | 0.234% |
Weighted Average Pay Rate | 3.22% | 3.22% |
Notional Amount | $ 20,000 | $ 20,000 |
Fair Value | $ (1,946) | $ (1,748) |
Receive Rate | 0.284% | 0.232% |
Weighted Average Pay Rate | 3.355% | 3.355% |
Notional Amount | $ 10,000 | $ 10,000 |
Fair Value | $ (208) | $ (35) |
Receive Rate | 0.326% | 0.255% |
Weighted Average Pay Rate | 1.674% | 1.674% |
Notional Amount | $ 10,000 | $ 10,000 |
Fair Value | $ (206) | $ (35) |
Receive Rate | 0.334% | 0.243% |
Weighted Average Pay Rate | 1.658% | 1.658% |
Notional Amount | $ 20,000 | |
Fair Value | $ (283) | |
Receive Rate | 1.19% | |
Weighted Average Pay Rate | 2.39% | |
Notional Amount | $ 20,000 | |
Fair Value | $ (332) | |
Receive Rate | 1.048% | |
Weighted Average Pay Rate | 2.352% |
Derivative Financial Instrume69
Derivative Financial Instruments (Gains (losses) recognized on derivatives (cash flow hedges)) (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | $ 48 | $ 68 | $ 137 | $ 162 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (53) | (63) | (166) | (192) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (574) | 193 | (117) | |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (127) | (129) | (258) | |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 78 | 208 | (563) | 387 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (150) | (153) | (379) | (455) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (266) | 248 | 247 | 8 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (156) | (158) | (451) | (473) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (122) | 89 | (198) | 48 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (35) | (37) | (471) | (74) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (120) | 88 | (173) | 48 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | (36) | (37) | (106) | (73) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (774) | 0 | (171) | 146 |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | 0 | 0 | (107) | (146) |
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (784) | (332) | ||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | 0 | 0 | ||
Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | (283) | |||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | 0 | |||
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | 0 | 0 | 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | 0 | $ 0 | 0 | $ 0 |
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | $ 0 | 0 | ||
Other Income | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss) | $ 0 |
Derivative Financial Instrume70
Derivative Financial Instruments (Narrative) (Details) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | |||
Cash pledged as collateral | $ 7,000,000 | $ 5,300,000 | |
Back-to-back Loan Swaps | |||
Derivative [Line Items] | |||
Derivative, notional amount | 19,500,000 | ||
Back-to-back Loan Swaps | Other Assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 570,000 | ||
Back-to-back Loan Swaps | Other Liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 570,000 | ||
Fair Value Hedge | Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, fixed interest rate | 3.40% | ||
Derivative, basis spread on LIBOR (as a percent) | 0.88% | ||
Derivative, notional amount | $ 13,800,000 | ||
Cash pledged as collateral | 414,000 | ||
Derivative liabilities, fair value | $ 111,500 |
Derivative Financial Instrume71
Derivative Financial Instruments (Balance sheet category and fair values of derivative instruments (not designated as hedging instruments)) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Assets | Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount. Other Assets | $ 126,619 | $ 74,863 |
Fair Value, Other Assets | 4,903 | 2,496 |
Other Assets | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount. Other Assets | 117,525 | 88,484 |
Fair Value, Other Assets | 833 | 275 |
Other Liabilities | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Other Liabilities | 309,020 | 218,337 |
Fair Value, Other Liabilities | $ (2,841) | $ (1,619) |
Derivative Financial Instrume72
Derivative Financial Instruments (Derivative instruments gains and losses recognized (not designated as hedging instruments)) (Details) - Gains on sale of loans held for sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest rate lock commitments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gain (Loss) Recognized | $ (361) | $ (1,924) | $ 3,471 | $ 3,393 |
Forward commitments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gain (Loss) Recognized | $ (4,237) | $ 1,505 | $ (662) | $ (1,474) |
Fair Value (Fair value measurem
Fair Value (Fair value measurement recurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |||
Assets | |||||
Securities available for sale | $ 1,261,687 | $ 1,401,868 | |||
U.S. government corporations and agencies | |||||
Assets | |||||
Securities available for sale | 27,020 | 24,093 | |||
Mortgage-backed securities | |||||
Assets | |||||
Securities available for sale | 1,006,349 | 1,219,266 | |||
Obligations of states and political subdivisions | |||||
Assets | |||||
Securities available for sale | 214,551 | 153,426 | |||
Corporate debt securities | |||||
Assets | |||||
Securities available for sale | 580 | 0 | |||
Equity securities | |||||
Assets | |||||
Securities available for sale | 13,187 | 5,083 | |||
Level 1 | |||||
Assets | |||||
Securities available for sale | 529 | 2,529 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Level 1 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 1 | Forward commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Level 2 | |||||
Assets | |||||
Securities available for sale | 1,254,538 | 1,394,392 | |||
Liabilities | |||||
Derivative liabilities | 4,982 | 3,646 | |||
Level 2 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 2 | Forward commitments | |||||
Assets | |||||
Derivative assets | 833 | 275 | |||
Liabilities | |||||
Derivative liabilities | 2,841 | 1,619 | |||
Level 3 | |||||
Assets | |||||
Securities available for sale | 6,620 | 4,947 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Level 3 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 4,903 | 2,496 | |||
Level 3 | Forward commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Recurring Basis | |||||
Assets | |||||
Total assets at fair value | 1,267,423 | 1,404,639 | |||
Liabilities | |||||
Total liabilities at fair value | 7,823 | 5,265 | |||
Recurring Basis | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 4,903 | 2,496 | |||
Recurring Basis | Derivative financial instruments | |||||
Liabilities | |||||
Derivative liabilities | 4,982 | 3,646 | |||
Recurring Basis | Forward commitments | |||||
Assets | |||||
Derivative assets | 833 | 275 | |||
Liabilities | |||||
Derivative liabilities | 2,841 | 1,619 | |||
Recurring Basis | U.S. government corporations and agencies | |||||
Assets | |||||
Securities available for sale | 27,020 | 24,093 | |||
Recurring Basis | Mortgage-backed securities | |||||
Assets | |||||
Securities available for sale | 1,006,349 | 1,219,266 | |||
Recurring Basis | Obligations of states and political subdivisions | |||||
Assets | |||||
Securities available for sale | 214,551 | 153,426 | |||
Recurring Basis | Corporate debt securities | |||||
Assets | |||||
Securities available for sale | 580 | 0 | |||
Recurring Basis | Equity securities | |||||
Assets | |||||
Securities available for sale | 13,187 | 5,083 | |||
Recurring Basis | Level 1 | |||||
Assets | |||||
Total assets at fair value | 529 | 2,529 | |||
Liabilities | |||||
Total liabilities at fair value | 0 | 0 | |||
Recurring Basis | Level 1 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Recurring Basis | Level 1 | Derivative financial instruments | |||||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Recurring Basis | Level 1 | Forward commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Recurring Basis | Level 1 | U.S. government corporations and agencies | |||||
Assets | |||||
Securities available for sale | 529 | 2,529 | |||
Recurring Basis | Level 1 | Mortgage-backed securities | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 1 | Obligations of states and political subdivisions | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 1 | Corporate debt securities | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 1 | Equity securities | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 2 | |||||
Assets | |||||
Total assets at fair value | 1,255,371 | 1,394,667 | |||
Liabilities | |||||
Total liabilities at fair value | 7,823 | 5,265 | |||
Recurring Basis | Level 2 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Recurring Basis | Level 2 | Derivative financial instruments | |||||
Liabilities | |||||
Derivative liabilities | 4,982 | 3,646 | |||
Recurring Basis | Level 2 | Forward commitments | |||||
Assets | |||||
Derivative assets | 833 | 275 | |||
Liabilities | |||||
Derivative liabilities | 2,841 | 1,619 | |||
Recurring Basis | Level 2 | U.S. government corporations and agencies | |||||
Assets | |||||
Securities available for sale | 26,491 | 21,564 | |||
Recurring Basis | Level 2 | Mortgage-backed securities | |||||
Assets | |||||
Securities available for sale | 1,000,309 | 1,214,319 | |||
Recurring Basis | Level 2 | Obligations of states and political subdivisions | |||||
Assets | |||||
Securities available for sale | 214,551 | 153,426 | |||
Recurring Basis | Level 2 | Corporate debt securities | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 2 | Equity securities | |||||
Assets | |||||
Securities available for sale | 13,187 | 5,083 | |||
Recurring Basis | Level 3 | |||||
Assets | |||||
Total assets at fair value | 11,523 | 7,443 | |||
Liabilities | |||||
Total liabilities at fair value | 0 | 0 | |||
Recurring Basis | Level 3 | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 4,903 | [1] | 2,496 | [2] | |
Recurring Basis | Level 3 | Derivative financial instruments | |||||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Recurring Basis | Level 3 | Forward commitments | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Recurring Basis | Level 3 | U.S. government corporations and agencies | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 3 | Mortgage-backed securities | |||||
Assets | |||||
Securities available for sale | 6,040 | 4,947 | |||
Recurring Basis | Level 3 | Obligations of states and political subdivisions | |||||
Assets | |||||
Securities available for sale | 0 | 0 | |||
Recurring Basis | Level 3 | Corporate debt securities | |||||
Assets | |||||
Securities available for sale | [3] | 580 | 0 | ||
Recurring Basis | Level 3 | Equity securities | |||||
Assets | |||||
Securities available for sale | $ 0 | $ 0 | |||
[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 which 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 September 30, 2015, was 86%. | ||||
[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 which 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 unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. |
Fair Value (Fair value measur74
Fair Value (Fair value measurement non-recurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | $ 3,440 | $ 0 | |
Nonrecurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 9,489 | 19,345 | |
Other real estate owned | 17,041 | 19,016 | |
Nonrecurring Basis | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 141 | 3,402 | |
Other real estate owned | 1,685 | 1,938 | |
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 | 9,489 | 19,345 | |
Other real estate owned | [1] | 17,041 | 19,016 |
Nonrecurring Basis | Premises, furniture and equipment held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | 3,440 | 0 | |
Nonrecurring Basis | Premises, furniture and equipment held for sale | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | 0 | 0 | |
Nonrecurring Basis | Premises, furniture and equipment held for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | 0 | 0 | |
Nonrecurring Basis | Premises, furniture and equipment held for sale | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | 0 | 0 | |
Nonrecurring Basis | Premises, furniture and equipment held for sale | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Premises, furniture and equipment held for sale | 3,440 | 0 | |
Nonrecurring Basis | Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 767 | 1,033 | |
Nonrecurring Basis | Commercial | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 79 | 659 | |
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] | 767 | 1,033 |
Nonrecurring Basis | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 4,277 | 12,584 | |
Nonrecurring Basis | Commercial real estate | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 57 | 492 | |
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 | [1] | 4,277 | 12,584 |
Nonrecurring Basis | Agricultural and agricultural real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 552 | |
Nonrecurring Basis | Agricultural and agricultural real estate | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 2,229 | |
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 | [1] | 0 | 552 |
Nonrecurring Basis | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 2,475 | 3,173 | |
Nonrecurring Basis | Residential real estate | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 5 | 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 | [1] | 2,475 | 3,173 |
Nonrecurring Basis | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 1,970 | 2,003 | |
Nonrecurring Basis | Consumer | Year-to- Date Losses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 22 | |
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 | [1] | $ 1,970 | $ 2,003 |
[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 ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | $ 1,261,687 | $ 1,401,868 | |||
Premises, furniture and equipment held for sale | 3,440 | 0 | |||
Corporate debt securities | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | 580 | 0 | |||
Recurring Basis | Interest rate lock commitments | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Derivative assets | 4,903 | 2,496 | |||
Recurring Basis | Corporate debt securities | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | 580 | 0 | |||
Nonrecurring Basis | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 9,489 | 19,345 | |||
Other real estate owned | 17,041 | 19,016 | |||
Nonrecurring Basis | Commercial | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 767 | 1,033 | |||
Nonrecurring Basis | Commercial real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 4,277 | 12,584 | |||
Nonrecurring Basis | Agricultural and agricultural real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 0 | 552 | |||
Nonrecurring Basis | Residential real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 2,475 | 3,173 | |||
Nonrecurring Basis | Consumer | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 1,970 | 2,003 | |||
Nonrecurring Basis | Premises, furniture and equipment held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Premises, furniture and equipment held for sale | 3,440 | 0 | |||
Level 3 | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | 6,620 | 4,947 | |||
Level 3 | Interest rate lock commitments | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Derivative assets | 4,903 | 2,496 | |||
Level 3 | Recurring Basis | Premises, furniture and equipment held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Premises, furniture and equipment held for sale | [1] | 3,440 | 0 | ||
Level 3 | Recurring Basis | Interest rate lock commitments | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Derivative assets | $ 4,903 | [1] | $ 2,496 | [2] | |
Closing ratio | 86.00% | 84.00% | |||
Level 3 | Recurring Basis | Z-TRANCHE Securities | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | $ 6,040 | $ 4,947 | |||
Level 3 | Recurring Basis | Z-TRANCHE Securities | Minimum | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Pretax discount rate | 7.00% | 7.00% | |||
Actual defaults (as a percent) | 17.28% | 15.60% | |||
Actual deferrals (as a percent) | 4.91% | 7.20% | |||
Level 3 | Recurring Basis | Z-TRANCHE Securities | Maximum | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Pretax discount rate | 9.50% | 9.00% | |||
Actual defaults (as a percent) | 32.60% | 30.60% | |||
Actual deferrals (as a percent) | 21.20% | 17.30% | |||
Level 3 | Recurring Basis | Z-TRANCHE Securities | Weighted Average | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Actual defaults (as a percent) | 26.32% | 24.50% | |||
Actual deferrals (as a percent) | 16.30% | 12.90% | |||
Level 3 | Recurring Basis | Corporate debt securities | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Securities available for sale | [3] | $ 580 | $ 0 | ||
Level 3 | Nonrecurring Basis | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | 9,489 | 19,345 | |||
Other real estate owned | [4] | 17,041 | 19,016 | ||
Level 3 | Nonrecurring Basis | Commercial | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | [4] | 767 | 1,033 | ||
Level 3 | Nonrecurring Basis | Commercial real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | [4] | 4,277 | 12,584 | ||
Level 3 | Nonrecurring Basis | Agricultural and agricultural real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | [4] | 0 | 552 | ||
Level 3 | Nonrecurring Basis | Residential real estate | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | [4] | 2,475 | 3,173 | ||
Level 3 | Nonrecurring Basis | Consumer | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Collateral dependent impaired loans | [4] | 1,970 | 2,003 | ||
Level 3 | Nonrecurring Basis | Premises, furniture and equipment held for sale | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Premises, furniture and equipment held for sale | $ 3,440 | $ 0 | |||
[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 which 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 September 30, 2015, was 86%. | ||||
[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 which 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 unobservable input is the bank analysis market using Moody's Global Bank Rating Methodology. The analysis takes into consideration various performance metrics as well as yield on the debt securities and credit risk analysis. | ||||
[4] | Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered included age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing range would not be meaningful. |
Fair Value (Changes Level 3 ass
Fair Value (Changes Level 3 assets (fair value, recurring)) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gains included in net gains on sale of loans held for sale | $ 27,102 | $ 17,604 | |
Interest rate lock commitments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Gains included in net gains on sale of loans held for sale | 4,900 | $ 2,500 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1 | 2,496 | 1,809 | 1,809 |
Total gains (losses): | |||
Included in earnings | 3,471 | 2,422 | |
Purchases, acquired, sales and settlements: | |||
Issuances | 3,851 | 2,038 | |
Settlements | (4,915) | (3,773) | |
Balance at period end | 4,903 | 2,496 | |
Z-TRANCHE Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1 | 4,947 | 3,298 | 3,298 |
Total gains (losses): | |||
Included in earnings | 0 | 0 | |
Included in other comprehensive income | 1,209 | 1,783 | |
Purchases, acquired, sales and settlements: | |||
Purchases | 6 | 0 | |
Sales | 0 | 0 | |
Settlements | (122) | (134) | |
Balance at period end | 6,040 | 4,947 | |
Corporate debt securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1 | 0 | $ 0 | 0 |
Total gains (losses): | |||
Included in earnings | 0 | 0 | |
Included in other comprehensive income | (160) | 0 | |
Purchases, acquired, sales and settlements: | |||
Purchases | 0 | 0 | |
Acquired | 740 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Balance at period end | $ 580 | $ 0 |
Fair Value (Estimated fair valu
Fair Value (Estimated fair value financial instruments (incl. carrying amounts)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Securities available for sale | $ 1,261,687 | $ 1,401,868 |
Held to maturity | 294,622 | 296,768 |
Financial liabilities: | ||
Other borrowings | 302,086 | 396,255 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 91,105 | 73,871 |
Time deposits in other financial institutions | 2,355 | 2,605 |
Securities available for sale | 529 | 2,529 |
Held to maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivative liabilities | 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) | Interest rate lock commitments | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward commitments | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities | 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 |
Securities available for sale | 1,254,538 | 1,394,392 |
Held to maturity | 294,622 | 296,768 |
Other investments | 19,057 | 20,263 |
Loans held for sale | 102,569 | 70,514 |
Loans, net | 4,601,272 | 3,814,536 |
Financial liabilities: | ||
Short term borrowings | 335,845 | 330,264 |
Other borrowings | 305,361 | 401,978 |
Derivative liabilities | 4,982 | 3,646 |
Significant Other Observable Inputs (Level 2) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 1,632,005 | 1,295,193 |
Significant Other Observable Inputs (Level 2) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 2,936,611 | 2,687,493 |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Financial liabilities: | ||
Deposits | 938,621 | 785,336 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Forward commitments | ||
Financial assets: | ||
Derivative assets | 833 | 275 |
Financial liabilities: | ||
Derivative liabilities | 2,841 | 1,619 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Financial assets: | ||
Loans, net | 1,222,726 | 1,008,769 |
Significant Other Observable Inputs (Level 2) | Commercial real estate | ||
Financial assets: | ||
Loans, net | 2,054,372 | 1,687,138 |
Significant Other Observable Inputs (Level 2) | Agricultural and agricultural real estate | ||
Financial assets: | ||
Loans, net | 469,329 | 423,416 |
Significant Other Observable Inputs (Level 2) | Residential real estate | ||
Financial assets: | ||
Loans, net | 481,318 | 367,005 |
Significant Other Observable Inputs (Level 2) | Consumer | ||
Financial assets: | ||
Loans, net | 373,527 | 328,208 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | 0 |
Securities available for sale | 6,620 | 4,947 |
Held to maturity | 0 | 0 |
Other investments | 235 | 235 |
Loans held for sale | 0 | 0 |
Loans, net | 9,489 | 19,345 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
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) | Interest rate lock commitments | ||
Financial assets: | ||
Derivative assets | 4,903 | 2,496 |
Significant Unobservable Inputs (Level 3) | Forward commitments | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Financial assets: | ||
Loans, net | 767 | 1,033 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | ||
Financial assets: | ||
Loans, net | 4,277 | 12,584 |
Significant Unobservable Inputs (Level 3) | Agricultural and agricultural real estate | ||
Financial assets: | ||
Loans, net | 0 | 552 |
Significant Unobservable Inputs (Level 3) | Residential real estate | ||
Financial assets: | ||
Loans, net | 2,475 | 3,173 |
Significant Unobservable Inputs (Level 3) | Consumer | ||
Financial assets: | ||
Loans, net | 1,970 | 2,003 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 91,105 | 73,871 |
Time deposits in other financial institutions | 2,355 | 2,605 |
Securities available for sale | 1,261,687 | 1,401,868 |
Held to maturity | 282,200 | 284,587 |
Other investments | 19,292 | 20,498 |
Loans held for sale | 102,569 | 70,514 |
Loans, net | 4,595,418 | 3,836,554 |
Financial liabilities: | ||
Short term borrowings | 335,845 | 330,264 |
Derivative liabilities | 4,982 | 3,646 |
Carrying Amount | Demand deposits | ||
Financial liabilities: | ||
Deposits | 1,632,005 | 1,295,193 |
Carrying Amount | Savings deposits | ||
Financial liabilities: | ||
Deposits | 2,936,611 | 2,687,493 |
Carrying Amount | Time deposits | ||
Financial liabilities: | ||
Deposits | 938,621 | 785,336 |
Carrying Amount | Interest rate lock commitments | ||
Financial assets: | ||
Derivative assets | 4,903 | 2,496 |
Carrying Amount | Forward commitments | ||
Financial assets: | ||
Derivative assets | 833 | 275 |
Financial liabilities: | ||
Derivative liabilities | 2,841 | 1,619 |
Carrying Amount | Commercial | ||
Financial assets: | ||
Loans, net | 1,226,694 | 1,024,065 |
Carrying Amount | Commercial real estate | ||
Financial assets: | ||
Loans, net | 2,043,473 | 1,690,899 |
Carrying Amount | Agricultural and agricultural real estate | ||
Financial assets: | ||
Loans, net | 465,961 | 420,623 |
Carrying Amount | Residential real estate | ||
Financial assets: | ||
Loans, net | 486,782 | 377,094 |
Carrying Amount | Consumer | ||
Financial assets: | ||
Loans, net | 372,508 | 323,873 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 91,105 | 73,871 |
Time deposits in other financial institutions | 2,355 | 2,605 |
Securities available for sale | 1,261,687 | 1,401,868 |
Held to maturity | 294,622 | 296,768 |
Other investments | 19,292 | 20,498 |
Loans held for sale | 102,569 | 70,514 |
Loans, net | 4,610,761 | 3,833,881 |
Financial liabilities: | ||
Short term borrowings | 335,845 | 330,264 |
Other borrowings | 305,361 | 401,978 |
Derivative liabilities | 4,982 | 3,646 |
Estimated Fair Value | Demand deposits | ||
Financial liabilities: | ||
Deposits | 1,632,005 | 1,295,193 |
Estimated Fair Value | Savings deposits | ||
Financial liabilities: | ||
Deposits | 2,936,611 | 2,687,493 |
Estimated Fair Value | Time deposits | ||
Financial liabilities: | ||
Deposits | 938,621 | 785,336 |
Estimated Fair Value | Interest rate lock commitments | ||
Financial assets: | ||
Derivative assets | 4,903 | 2,496 |
Estimated Fair Value | Forward commitments | ||
Financial assets: | ||
Derivative assets | 833 | 275 |
Financial liabilities: | ||
Derivative liabilities | 2,841 | 1,619 |
Estimated Fair Value | Commercial | ||
Financial assets: | ||
Loans, net | 1,223,493 | 1,009,802 |
Estimated Fair Value | Commercial real estate | ||
Financial assets: | ||
Loans, net | 2,058,649 | 1,699,722 |
Estimated Fair Value | Agricultural and agricultural real estate | ||
Financial assets: | ||
Loans, net | 469,329 | 423,968 |
Estimated Fair Value | Residential real estate | ||
Financial assets: | ||
Loans, net | 483,793 | 370,178 |
Estimated Fair Value | Consumer | ||
Financial assets: | ||
Loans, net | $ 375,497 | $ 330,211 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 59,724 | $ 51,491 | $ 171,298 | $ 150,902 | |
Provision for loan losses | 3,181 | 2,553 | 10,526 | 11,635 | |
Total noninterest income | 24,980 | 20,606 | 86,304 | 60,991 | |
Total noninterest expense | 61,996 | 54,655 | 185,092 | 161,852 | |
INCOME BEFORE INCOME TAXES | 19,527 | 14,889 | 61,984 | 38,406 | |
Average Loans, for the period | 4,654,179 | 3,812,218 | 4,457,715 | 3,692,718 | |
Segment Assets, at period end | 6,805,884 | 5,934,809 | 6,805,884 | 5,934,809 | $ 6,051,812 |
Operating Segments | Community and Other Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 58,123 | 50,790 | 167,000 | 148,930 | |
Provision for loan losses | 3,181 | 2,553 | 10,526 | 11,635 | |
Total noninterest income | 16,015 | 11,568 | 48,679 | 35,085 | |
Total noninterest expense | 49,168 | 43,228 | 145,614 | 129,108 | |
INCOME BEFORE INCOME TAXES | 21,789 | 16,577 | 59,539 | 43,272 | |
Average Loans, for the period | 4,563,221 | 3,736,917 | 4,365,908 | 3,629,822 | |
Segment Assets, at period end | 6,676,526 | 5,817,427 | 6,676,526 | 5,817,427 | |
Operating Segments | Retail Mortgage Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 1,601 | 701 | 4,298 | 1,972 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Total noninterest income | 8,965 | 9,038 | 37,625 | 25,906 | |
Total noninterest expense | 12,828 | 11,427 | 39,478 | 32,744 | |
INCOME BEFORE INCOME TAXES | (2,262) | (1,688) | 2,445 | (4,866) | |
Average Loans, for the period | 90,958 | 75,301 | 91,807 | 62,896 | |
Segment Assets, at period end | $ 129,358 | $ 117,382 | $ 129,358 | $ 117,382 |