Heartland Financial USA (HTLF) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2020	May 05, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-15393
Entity Registrant Name	HEARTLAND FINANCIAL USA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1405748
Entity Address, Address Line One	1398 Central Avenue
Entity Address, City or Town	Dubuque
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52001
City Area Code	563
Local Phone Number	589-2100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	HTLF
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		36,808,249
Entity Central Index Key	0000920112
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 175,587	$ 206,607
Interest bearing deposits with other banks and other short-term investments	64,156	172,127
Cash and cash equivalents	239,743	378,734
Time deposits in other financial institutions	3,568	3,564
Securities:
Carried at fair value (cost of $3,517,232 at March 31, 2020, and $3,311,433 at December 31, 2019)	3,488,621	3,312,796
Held to maturity, net of allowance for credit losses of $197 at March 31, 2020 (fair value of $101,375 at March 31, 2020, and $100,484 at December 31, 2019)	91,875	91,324
Other investments, at cost	35,370	31,321
Loans held for sale	22,957	26,748
Loans receivable:
Held to maturity	8,374,236	8,367,917
Allowance for credit losses	(97,350)	(70,395)
Loans receivable, net	8,276,886	8,297,522
Premises, furniture and equipment, net	197,993	197,558
Premises, furniture and equipment held for sale	2,967	2,967
Other real estate, net	6,074	6,914
Goodwill	446,345	446,345
Core deposit intangibles and customer relationship intangibles, net	45,707	48,688
Servicing rights, net	5,220	6,736
Cash surrender value on life insurance	172,140	171,625
Other assets	259,043	186,755
TOTAL ASSETS	13,294,509	13,209,597
Deposits:
Demand	3,696,974	3,543,863
Savings	6,366,610	6,307,425
Time	1,110,441	1,193,043
Total deposits	11,174,025	11,044,331
Short-term borrowings	121,442	182,626
Other borrowings	276,150	275,773
Accrued expenses and other liabilities	169,178	128,730
TOTAL LIABILITIES	11,740,795	11,631,460
STOCKHOLDERS' EQUITY:
Common stock (par value $1 per share; 60,000,000 shares authorized at both March 31, 2020, and December 31, 2019; issued 36,807,217 shares at March 31, 2020, and 36,704,278 shares at December 31, 2019)	36,807	36,704
Capital surplus	842,780	839,857
Retained earnings	700,298	702,502
Accumulated other comprehensive income/(loss)	(26,171)	(926)
TOTAL STOCKHOLDERS' EQUITY	1,553,714	1,578,137
TOTAL LIABILITIES AND EQUITY	13,294,509	13,209,597
Preferred stock
STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Series A Junior Participating preferred stock
STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Series C Senior Non-Cumulative Perpetual Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Series D Senior Non-Cumulative Perpetual Convertible Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities carried at fair value, cost	$ 3,517,232	$ 3,311,433
Allowance for credit loss	197	0
Securities, held to maturity, fair value	$ 101,375	$ 100,484
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	60,000,000
Common stock, shares issued (in shares)	36,807,217	36,704,278
Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	17,604	17,604
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series A Junior Participating preferred stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	16,000	16,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series C Senior Non-Cumulative Perpetual Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	81,698	81,698
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series D Senior Non-Cumulative Perpetual Convertible Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	3,000	3,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INTEREST INCOME:
Interest and fees on loans	$ 106,414	$ 100,456
Interest on securities:
Taxable	21,731	15,876
Nontaxable	2,183	3,093
Interest on federal funds sold	0	4
Interest on interest bearing deposits in other financial institutions	721	1,292
TOTAL INTEREST INCOME	131,049	120,721
INTEREST EXPENSE:
Interest on deposits	14,582	13,213
Interest on short-term borrowings	296	889
Interest on other borrowings (includes $(183) and $165 of interest expense/(benefit) related to derivatives reclassified from accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019, respectively.	3,660	3,664
TOTAL INTEREST EXPENSE	18,538	17,766
NET INTEREST INCOME	112,511	102,955
Provision for credit losses	21,520	1,635
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	90,991	101,320
NONINTEREST INCOME:
Revenue from contract with customers	17,776	18,002
Loan servicing income	963	1,729
Securities gains, net includes $1,658 and $1,575 of net security gains reclassified from accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019, respectively.	1,658	1,575
Unrealized gain/(loss) on equity securities, net	(231)	258
Net gains on sale of loans held for sale	4,660	3,176
Valuation allowance on servicing rights	(1,565)	(589)
Income on bank owned life insurance	498	899
Other noninterest income	2,058	1,667
TOTAL NONINTEREST INCOME	25,817	26,717
NONINTEREST EXPENSES:
Salaries and employee benefits	49,957	50,285
Occupancy	6,471	6,607
Furniture and equipment	3,108	2,692
Professional fees	12,473	10,995
Advertising	2,205	2,320
Core deposit intangibles and customer relationship intangibles amortization	2,981	2,869
Other real estate and loan collection expenses	334	701
(Gain)/loss on sales/valuations of assets, net	16	(3,004)
Acquisition, integration and restructuring costs	1,376	3,614
Partnership investment in tax credit projects	184	475
Other noninterest expenses	11,754	10,676
TOTAL NONINTEREST EXPENSES	90,859	88,230
INCOME BEFORE INCOME TAXES	25,949	39,807
Income taxes (includes $466 and $358 of income tax expense reclassified from accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019, respectively.)	5,909	8,310
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 20,040	$ 31,497
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 0.54	$ 0.91
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	0.54	0.91
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.20	$ 0.16
Service charges and fees
NONINTEREST INCOME:
Revenue from contract with customers	$ 12,021	$ 12,794
Trust fees
NONINTEREST INCOME:
Revenue from contract with customers	5,022	4,474
Brokerage and insurance commissions
NONINTEREST INCOME:
Revenue from contract with customers	$ 733	$ 734

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest expense	$ 3,660	$ 3,664
Gain (loss) on securities	1,658	1,575
Income tax expense (benefit)	5,909	8,310
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Derivatives
Interest expense	(183)	165
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Gain (loss) on securities	1,658	1,575
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss)
Income tax expense (benefit)	$ 466	$ 358

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 20,040	$ 31,497
Securities:
Net change in unrealized gain/(loss) on securities	(28,328)	29,965
Reclassification adjustment for net gains realized in net income	(1,658)	(1,575)
Income taxes	7,797	(7,281)
Other comprehensive income/(loss) on securities	(22,189)	21,109
Derivatives used in cash flow hedging relationships:
Net change in unrealized loss on derivatives	(3,680)	(1,504)
Reclassification adjustment for net gains/(losses) on derivatives realized in net income	(190)	158
Income taxes	814	282
Other comprehensive loss on cash flow hedges	(3,056)	(1,064)
Other comprehensive income/(loss)	(25,245)	20,045
TOTAL COMPREHENSIVE INCOME/(LOSS)	$ (5,205)	$ 51,542

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 20,040	$ 31,497
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,100	8,155
Provision for credit losses	21,520	1,635
Net amortization of premium on securities	3,685	5,692
Securities gains, net	(1,658)	(1,575)
Unrealized (gain)/loss on equity securities, net	231	(258)
Stock based compensation	2,222	2,375
Loans originated for sale	(91,974)	(61,348)
Proceeds on sales of loans held for sale	100,425	64,941
Net gains on sale of loans held for sale	(4,660)	(2,978)
(Increase) decrease in accrued interest receivable	(667)	682
Increase in prepaid expenses	(157)	(1,708)
Increase in accrued interest payable	316	1,261
Capitalization of servicing rights	(414)	(266)
Valuation allowance on servicing rights	1,565	589
Loss on sales/valuations of assets, net	16	1,512
Net excess tax (expense) benefit from stock based compensation	(25)	336
Other, net	(40,513)	(16,493)
NET CASH PROVIDED BY OPERATING ACTIVITIES	17,052	34,049
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits in other financial institutions	(4)	(248)
Proceeds from the sale of securities available for sale	328,890	434,154
Proceeds from the maturity of and principal paydowns on securities available for sale	92,413	86,727
Proceeds from the maturity of and principal paydowns on securities held to maturity	55	2,156
Proceeds from the maturity of time deposits in other financial institutions	150	245
Proceeds from the sale, maturity of and principal paydowns on other investments	5,613	2,730
Purchase of securities available for sale	(627,246)	(299,105)
Purchase of other investments	(9,662)	(1,779)
Net (increase) decrease in loans	(5,568)	43,925
Purchase of bank owned life insurance policies	(39)	(5)
Capital expenditures	(3,723)	(1,123)
Proceeds from the sale of equipment	0	117
Net cash expended in divestiture	0	28,142
Proceeds on sale of OREO and other repossessed assets	1,019	2,537
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES	(218,102)	298,473
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in demand deposits	153,111	(131,876)
Net increase in savings deposits	59,185	74,016
Net increase (decrease) in time deposit accounts	(82,602)	75,141
Net decrease in short-term borrowings	(34,987)	(43,000)
Proceeds from short term FHLB advances	491,545	430,888
Repayments of short term FHLB advances	(517,742)	(506,725)
Proceeds from other borrowings	1,930	50
Repayments of other borrowings	(1,832)	(6,868)
Proceeds from issuance of common stock	804	253
Dividends paid	(7,353)	(5,530)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES	62,059	(113,651)
Net increase (decrease) in cash and cash equivalents	(138,991)	218,871
Cash and cash equivalents at beginning of year	378,734	273,630	$ 273,630
CASH AND CASH EQUIVALENTS AT END OF PERIOD	239,743	492,501	$ 378,734
Supplemental disclosures:
Cash paid for income/franchise taxes	12	84
Cash paid for interest	18,222	16,537
Loans transferred to OREO	245	1,694
Transfer of premises from premises, furniture and equipment, net, to premises, furniture and equipment held for sale	0	654
Deposits transferred to held for sale	0	76,968
Loans transferred to held for sale	0	32,111
Securities transferred from held to maturity to available for sale	0	148,030
Purchases of securities available for sale, accrued, not settled	14,035	2,019
Maturity of securities available for sale, accrued, not settled	0	1,000
Transfer of available for sale securities to held to maturity securities	$ 462	$ 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity adjustment for new ASU adoption	$ (1,713)				$ (1,713)
Balance at beginning of period at Dec. 31, 2018	1,325,175	$ 0	$ 34,477	$ 743,095	579,252	$ (31,649)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income/(loss)	51,542				31,497	20,045
Cash dividends declared:
Common	(5,530)				(5,530)
Issuance of shares of common stock	253		127	126
Stock based compensation	2,375			2,375
Balance at end of period at Mar. 31, 2019	1,372,102	0	34,604	745,596	603,506	(11,604)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity adjustment for new ASU adoption	(14,891)				(14,891)
Balance at beginning of period at Dec. 31, 2019	1,578,137	0	36,704	839,857	702,502	(926)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income/(loss)	(5,205)				20,040	(25,245)
Cash dividends declared:
Common	(7,353)				(7,353)
Issuance of shares of common stock	804		103	701
Stock based compensation	2,222			2,222
Balance at end of period at Mar. 31, 2020	$ 1,553,714	$ 0	$ 36,807	$ 842,780	$ 700,298	$ (26,171)	$ 0

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends per share common stock (in dollars per share)	$ 0.20	$ 0.16
Shares of common stock issued (in shares)	102,939	126,112

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
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, 2019, included in the Form 10-K of Heartland Financial USA, Inc. ("Heartland") filed with the Securities and Exchange Commission ("SEC") on February 26, 2020 . Foot note disclosures to the interim unaudited consolidated financial statements which would substantially duplicate the disclosure contained in the footnotes to 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 March 31, 2020, are not necessarily indicative of the results expected for the year ending December 31, 2020. Earnings Per Share Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. Amounts used in the determination of basic and diluted earnings per share for the three-month periods ended March 31, 2020, and 2019, are shown in the table below: Three Months Ended (Dollars and number of shares in thousands, except per share data) 2020 2019 Net income available to stockholders $ 20,040 $ 31,497 Weighted average common shares outstanding for basic earnings per share 36,821 34,564 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 75 136 Weighted average common shares for diluted earnings per share 36,896 34,700 Earnings per common share — basic $ 0.54 $ 0.91 Earnings per common share — diluted $ 0.54 $ 0.91 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 2 Subsequent Events - Heartland has evaluated subsequent events that may require recognition or disclosure through the filing date of this Quarterly Report on Form 10-Q with the SEC. Effect of New Financial Accounting Standards ASU 2016-13 On January 1, 2020, Heartland adopted Accounting Standards Update ("ASU") 2016-13, " Financial Instruments - Credit Losses (Topic 326),", which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. Also on January 1, 2020, Heartland adopted ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which amended certain provisions contained in ASU 2016-13, particularly by including accrued interest in the definition of amortized cost, as well as by clarifying that loan extension and renewal options in the original or modified contract that are not unconditionally cancelable by the entity should be considered in the entity's determination of expected credit losses. Also on January 1, 2020, Heartland adopted ASU 2019-11, " Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which amended certain aspects of ASU 2016-13. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, which includes loans held to maturity and held to maturity debt securities. It also applies to available for sale debt securities and off-balance sheet unfunded loan commitments. Heartland adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost basis and off-balance sheet unfunded loan commitments. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Heartland's adoption of ASU 2016-13 resulted in an increase of $12.1 million to the allowance for credit losses related to loans, which included the addition of $6.0 million of purchased credit impaired discount on previously acquired loans and a cumulative-effect adjustment to retained earnings totaling $4.6 million, net of taxes of $1.5 million. Heartland adopted ASU 2016-13 using the prospective transition approach for loans purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI") and accounted for under Accounting Standards Codification ("ASC") 310-30. In accordance with ASC 326, Heartland did not reassess whether PCI loans met the criteria of PCD loans as of the adoption date. The adoption of ASU 2016-13 resulted in an increase of $13.6 million to the allowance for unfunded commitments and a cumulative-effect adjustment to retained earnings totaling $10.2 million, net of taxes of $3.4 million. The adoption of ASU 2016-13 also established an allowance for credit losses for Heartland's held to maturity debt securities of $158,000 and a cumulative-effect adjustment to retained earnings totaling $118,000, net of taxes of $40,000. Heartland did not record an allowance for credit losses for Heartland's available for sale debt securities upon adoption of ASU 2016-13. The total result of the adoption of ASU 2016-13 was a cumulative-effect adjustment to Heartland's retained earnings of $14.9 million, net of taxes of $5.0 million. Heartland elected to not measure an allowance for credit losses on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. Heartland elected to not include accrued interest within the presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the consolidated financial statements and notes contained in this Quarterly Report on Form 10-Q. The adoption of ASU 2019-04 did not have a material impact on Heartland's results of operation or financial condition. Heartland elected not to utilize the regulatory transition relief issued by federal regulatory authorities in the first quarter of 2020, which allowed banking institutions to delay the impact of CECL on regulatory capital because the impact on the capital ratios of Heartland and its subsidiary banks was not significant. Loans Held to Maturity Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, which is the principal amount outstanding, net of cumulative charge-offs, unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Heartland has a loan policy which establishes the credit risk appetite, lending standards and underwriting criteria designed so that Heartland may extend credit in a prudent and sound manner. The Heartland board of directors reviews and approves the loan policy 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. Heartland originates commercial and industrial loans and owner occupied commercial real estate loans for a wide variety of business purposes, including lines of credit for capital and operating purposes and term loans for real estate and equipment purchases. Non-owner occupied commercial real estate loans provide financing for various non-owner occupied or income producing properties. Real estate construction loans are generally short-term or interim loans that provide financing for acquiring or developing commercial income properties, multi-family projects or single-family residential homes. Agricultural and agricultural real estate loans provide financing for capital improvements and farm operations, as well as livestock and machinery purchases. Residential real estate loans are originated for the purchase or refinancing of single family residential properties. Consumer loans include loans for motor vehicles, home improvement, home equity and personal lines of credit. 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 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 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 credit losses. A loan can be restored to accrual status if the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments on the loan, and (1) all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period of time, and (2) there is a sustained period of repayment performance (generally a minimum of six months) by the borrower in accordance with the scheduled contractual terms. Allowance for Credit Losses on Loans The allowance for credit losses is a valuation account that is deducted from the loans held to maturity amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of the amounts previously charged off. Heartland's allowance model is designed to consider the current contractual term of the loan, defined as starting as of the most recent renewal date and ending at maturity date. Prepayments are implicit in the model. Management's estimation of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. Adjustments are made to historical loss experience to reflect differences in asset-specific risk characteristics, such as underwriting standards, portfolio mix or asset terms and differences in economic conditions, both current conditions and reasonable and supportable forecasts. If Heartland is not able to make or obtain reasonable and supportable forecasts for the entire life of the financial asset, it is required to estimate expected credit losses for the remaining life using an approach that reverts to historical credit loss information. The components of the allowance for credit losses are described more specifically below. Quantitative Factors The quantitative component of the allowance for credit losses is measured using historical loss experience using a look-back period, currently over the most recent 12 years, on a pool basis for loans with similar risk characteristics. Heartland utilizes third-party software to calculate the expected credit losses. The risks in the commercial and industrial loan portfolio include the unpredictability of the cash flow of the borrowers and the variability in the value of the collateral securing the loans. Owner occupied commercial real estate loans are dependent upon the cash flow of the borrowers and the collateral value of the real estate. Non-owner occupied commercial real estate loans are typically dependent, in large part, on sufficient income from the properties securing the loans to cover the operating expenses and debt service. Real estate construction loans involve additional risks because funds are advanced based upon estimates of costs and the estimated value of the completed project. Additionally, real estate construction loans have a greater risk of default in a weaker economy because the source of repayment is reliant on the successful and timely sale of the project. Agricultural and agricultural real estate loans are dependent upon the profitable operation or management of the farm property securing the loan. Loans secured by farm equipment, livestock or crops may not provide an adequate source of repayment because of damage or depreciation. Residential real estate loans are dependent upon the borrower's ability to repay the loan and the underlying collateral value. Consumer loans are dependent upon the borrower's personal financial circumstances and continued financial stability. If a loan no longer shares similar risk characteristics with other loans in the pool and does not share similar risk characteristics with another pool, it is evaluated on an individual basis and is not included in the collective evaluation. Heartland will individually assess loans that are collateral dependent. A loan is collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For those loans that are deemed collateral dependent and in foreclosure the impairment will be recognized by creating a specific reserve against the loan with a corresponding charge to provision expense. In most cases, the specific reserve will be charged off in the same quarter as the loss is probable. Individually assessed loans will be considered non-accrual since it is probable that the collection of all principal and interest will not occur. In some cases when foreclosure is not probable, but Heartland believes certain loans do not share the same risk characteristics with the like loans in the pool, the standard allows for these loans to be individually assessed. All individually assessed calculations are completed at least annually. Qualitative Factors Heartland's allowance methodology also has a qualitative component, the purpose of which is to provide management with a means to take into consideration changes in current conditions that could potentially have an effect, up or down, on the level of recognized loan losses, that, for whatever reason, fail to show up in the quantitative analysis performed in determining its base loan loss rates. Heartland utilizes the following qualitative factors: • changes in lending policies and procedures • changes in the nature and volume of loans • experience and ability of management • changes in the credit quality of the loan portfolio • quality of institution’s loan review system • concentrations of credit • other external factors The qualitative adjustments are based on the comparison of the current condition to the average condition over the look back period. The adjustment amount can be either positive or negative depending whether or not the current condition is better or worse than the historical average. Heartland incorporates the adjustments for changes in current conditions using an overlay method. The adjustments are applied as a percentage adjustment in addition to the calculated historical loss rates of each pool. These adjustments reflect the extent to which Heartland expects current conditions to differ from the conditions that existed for the period over which historical information was evaluated. Heartland utilizes anchoring to determine the minimum and maximum amount of qualitative allowance for credit losses, which is determined by comparing the highest and lowest historical rate to the average loss rate to calculate the rate for the adjustment. Economic Forecasting Heartland utilizes an overlay method for its economic forecasting component, similar to the method utilized for the qualitative factors. The length of the reasonable and supportable forecast period is a judgmental determination based on the level to which the entity can support its forecast of economic conditions that drive its estimate of expected loss. Heartland compares forecasted economic indices, such as unemployment and gross domestic product, to the economic conditions that existed over Heartland's look-back period. It is expected that actual economic conditions will, in many circumstances, turn out differently than forecasted because the ultimate outcomes during the forecast period may be affected by events that were unforeseen, such as economic disruption and fiscal or monetary policy actions, which are exacerbated by longer forecasting periods. This uncertainty would be relevant to the entity’s confidence level as to the outcomes being forecasted. That is, an entity is likely less confident in the ultimate outcome of events that will occur at the end of the forecast period as compared to the beginning. As a result, actual future economic conditions may not be an effective indicator of the quality of management’s forecasting process, including the length of the forecast period. Heartland has access to various third-party economic forecast scenarios provided by Moody's, which are updated quarterly in Heartland's methodology. Because Heartland is applying the economic forecast adjustment qualitatively, the concept of "reversion to the historical mean" does not apply. For Heartland's January 1, 2020 calculation, a two-year reasonable and supportable forecast period was used. Because of the economic uncertainty associated with COVID-19, Heartland utilized a one-year reasonable and supportable forecast period for the calculation of the March 31, 2020, allowance for credit losses. Allowance for Credit Losses on Unfunded Loan Commitments Heartland estimates expected credit losses over the contractual term of the loan for the unfunded portion of the loan commitment that is not unconditionally cancellable by Heartland. Management uses an estimated average utilization rate to determine the exposure at default. The allowance for unfunded commitments is recorded in the Accrued Expenses and Other Liabilities section of the consolidated balance sheets. Allowance for Credit Losses on Held to Maturity Debt Securities Heartland measures expected credit losses on held to maturity debt securities on a collective basis based on security type. The estimate of expected credit losses considers historical credit information that is adjusted for current conditions and supportable forecasts. Heartland's held to maturity debt securities consist primarily of investment grade obligations of states and political subdivisions. The forecast and forecast period used in the calculation of allowance for credit losses on loans is used in calculating the allowance for credit losses on held to maturity debt securities, and Heartland utilizes a third-party to calculate the expected credit losses. Allowance for Credit Losses on Available for Sale ("AFS") Debt Securities ASU 2016-13 modifies the impairment model for AFS debt securities. AFS debt securities in unrealized loss positions are evaluated for credit related loss at least quarterly. The decline in fair value of an AFS debt security due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income, net of applicable taxes. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally considered to not be related to credit when the fair value of the security is below the carrying value primarily due to changes in risk-free interest rates, there has not been significant deterioration in the financial condition of the issuer, and Heartland does not intend to sell nor does it believe it will be required to sell the security before the recovery of its cost basis. Heartland did not record an allowance for credit losses on AFS debt securities upon adoption of ASU 2016-13 or at March 31, 2020. ASU 2017-04 In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350)." The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Instead, an entity performs only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing the impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. An entity has the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. This ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and is applied prospectively. Early adoption was permitted, including in an interim period for impairment tests performed after January 1, 2017. Heartland adopted ASU 2017-04 in the first quarter of 2020, and the adoption did not have a material impact on its results of operations, financial position and liquidity. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, " Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption was permitted. Heartland adopted this ASU on January 1, 2020, as required, and because ASU 2018-13 only revised disclosure requirements, the adoption of this ASU did not have a material impact on its results of operations, financial position and liquidity. ASU 2018-16 In October 2018, the FASB issued ASU 2018-16, " Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting." In the United States, eligible benchmark interest rates under Topic 815 are interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate ("LIBOR") swap rate, and the Overnight Index Swap ("OIS") Rate based on the Fed Funds Effective Rate. When the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , in August 2017, it introduced the Securities Industry and Financial Markets Association ("SIFMA") Municipal Swap Rate as the fourth permissible U.S. benchmark rate. ASU 2018-16 adds the OIS rate based on the Secured Overnight Financing Rate ("SOFR") as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. ASU 2018-16 became effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and the financial statement impact immediately upon adoption was immaterial. The future financial statement impact will depend on any new contracts entered into using new benchmark rates, as well as any existing contracts that are migrated from LIBOR to new benchmark interest rates. Heartland is currently evaluating the impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including but not limited to the SOFR. Currently, Heartland has adjustable rate loans, several debt obligations and derivative instruments in place that reference LIBOR-based rates. The transition from LIBOR is expected to take place at the end of 2021, and management will continue to actively assess the related opportunities and risks involved in this transition. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Heartland intends to adopt this ASU on January 1, 2021, as required, and the adoption is not expected to have a material impact on its results of operations, financial position and liquidity. ASU 2020-02 In February 2020, the FASB issued ASU 2020-02, "Financial Instruments - Credit losses (Topic 326) and Leases (Topic 842)," which incorporates SEC Staff Accounting Bulletin ("SAB") 119 (updated from SAB 102) into the ASC by aligning SEC recommended policies and procedures with ASC 326. ASU 2020-02 was effective immediately for Heartland and had no significant impact on its results of operations, financial position and liquidity. ASU 2020-03 In March 2020, the FASB issued ASU 2020-03, " Codification Improvements to Financial Instruments," which revised a wide variety of topics in the ASC with the intent to make the ASC easier to understand and apply by eliminating inconsistencies and providing clarifications. ASU 2020-03 was effective immediately upon its release, and the adoption did not have a material impact on Heartland's results of operations, financial position and liquidity. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform, " which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For loan and lease agreements that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modifications would be considered "minor" with the result that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement, with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the ASC, ASU 2020-04 must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Heartland anticipates that ASU 2020-04 will simplify any modifications executed between the selected start date and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract that would result in writing off unamortized fees/costs. Management will continue to actively assess the impacts of ASU 2020-04 and the related opportunities and risks involved in the LIBOR transition.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Pending Acquisition AIM Bancshares, Inc. On February 11, 2020, Heartland entered into a definitive merger agreement to acquire AIM Bancshares, Inc., and its wholly-owned subsidiary, AimBank, headquartered in Levelland, Texas. Shareholders of AIM Bancshares will receive 207.0 shares of Heartland common stock and $685.00 of cash for each share of AIM Bancshares. The transaction value will change due to fluctuations in the price of Heartland common stock and is subject to certain potential adjustments as set forth in the merger agreement. Simultaneous with the closing of the transaction, AimBank will merge into Heartland's Texas-based subsidiary, First Bank & Trust, and the combined entity will operate as First Bank & Trust. As of March 31, 2020, AimBank had total assets of $1.82 billion, $1.16 billion of gross loans outstanding, and $1.58 billion of deposits. Because the merger agreement was signed on February 11, 2020, and the transaction is expected to close in the third quarter of 2020, the transaction has no impact on Heartland's first quarter 2020 consolidated financial statements. Rockford Bank and Trust Company On November 30, 2019, Heartland's Illinois Bank & Trust subsidiary completed its acquisition of substantially all of the assets and substantially all of the deposits and certain other liabilities of Rockford Bank and Trust Company, headquartered in Rockford, Illinois. Rockford Bank and Trust Company was a wholly-owned subsidiary of Moline, Illinois-based QCR Holdings, Inc. As of the closing date, Rockford Bank and Trust Company had, at fair value, total assets of $495.7 million, which included $354.0 million of gross loans held to maturity, and $430.3 million of deposits. The all-cash payment was approximately $46.6 million. Blue Valley Ban Corp. On May 10, 2019, Heartland completed the acquisition of Blue Valley Ban Corp. ("BVBC") and its wholly-owned subsidiary, Bank of Blue Valley, headquartered in Overland Park, Kansas. Based on Heartland's closing common stock price of $44.78 per share on May 10, 2019, the aggregate consideration paid to BVBC common shareholders was $92.3 million, which was paid by delivery of 2,060,258 shares of Heartland common stock. On the closing date, in addition to this merger consideration,

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
SECURITIES	SECURITIES The amortized cost, gross unrealized gains and losses, and estimated fair values of debt securities available for sale and equity securities with a readily determinable fair value that are carried at fair value as of March 31, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated March 31, 2020 U.S. government corporations and agencies $ 9,796 $ 120 $ — $ 9,916 Mortgage and asset-backed securities 2,574,131 25,835 (79,962) 2,520,004 Obligations of states and political subdivisions 915,045 29,927 (4,531) 940,441 Total debt securities 3,498,972 55,882 (84,493) 3,470,361 Equity securities with a readily determinable fair value 18,260 — — 18,260 Total $ 3,517,232 $ 55,882 $ (84,493) $ 3,488,621 December 31, 2019 U.S. government corporations and agencies $ 9,844 $ 49 $ — $ 9,893 Mortgage and asset-backed securities 2,579,081 17,200 (19,003) 2,577,278 Obligations of states and political subdivisions 704,073 12,516 (9,399) 707,190 Total debt securities 3,292,998 29,765 (28,402) 3,294,361 Equity securities with a readily determinable fair value 18,435 — — 18,435 Total $ 3,311,433 $ 29,765 $ (28,402) $ 3,312,796 The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of March 31, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses March 31, 2020 Obligations of states and political subdivisions $ 92,072 $ 9,303 $ — $ 101,375 $ (197) Total $ 92,072 $ 9,303 $ — $ 101,375 $ (197) December 31, 2019 Obligations of states and political subdivisions $ 91,324 $ 9,160 $ — $ 100,484 $ — Total $ 91,324 $ 9,160 $ — $ 100,484 $ — As of March 31, 2020, Heartland had $13.6 million of accrued interest receivable, which is included in other assets on the consolidated balance sheet. Heartland does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses calculation. The amortized cost and estimated fair value of investment securities carried at fair value at March 31, 2020, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. March 31, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 13,010 $ 13,115 Due in 1 to 5 years 28,459 28,965 Due in 5 to 10 years 77,800 80,445 Due after 10 years 805,572 827,832 Total debt securities 924,841 950,357 Mortgage and asset-backed securities 2,574,131 2,520,004 Equity securities with a readily determinable fair value 18,260 18,260 Total investment securities $ 3,517,232 $ 3,488,621 The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2020, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. March 31, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 3,357 $ 3,398 Due in 1 to 5 years 16,681 17,158 Due in 5 to 10 years 60,368 65,394 Due after 10 years 11,666 15,425 Total debt securities 92,072 101,375 Allowance for credit losses (197) — Total investment securities $ 91,875 $ 101,375 As of March 31, 2020, and December 31, 2019, securities with a carrying value of $1.02 billion and $509.6 million, respectively, were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required or permitted by law. Gross gains and losses realized related to the sales of securities carried at fair value for the three-month periods ended March 31, 2020 and 2019, are summarized as follows, in thousands: Three Months Ended 2020 2019 Proceeds from sales $ 328,890 $ 434,154 Gross security gains 2,904 2,408 Gross security losses 1,246 833 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 March 31, 2020, and December 31, 2019. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. The reference point for determining how long an investment was in an unrealized loss position w as March 31, 2019, and December 31, 2018, respectively. Debt securities available for sale Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count March 31, 2020 U.S. government corporations and agencies $ — $ — — $ — $ — — $ — $ — — Mortgage and asset-backed securities 1,255,628 (65,624) 129 168,360 (14,338) 44 1,423,988 (79,962) 173 Obligations of states and political subdivisions 202,240 (4,531) 29 — — — 202,240 (4,531) 29 Total temporarily impaired securities $ 1,457,868 $ (70,155) 158 $ 168,360 $ (14,338) 44 $ 1,626,228 $ (84,493) 202 December 31, 2019 U.S. government corporations and agencies $ — $ — — $ — $ — — $ — $ — — Mortgage and asset-backed securities 1,231,732 (14,189) 150 241,232 (4,814) 58 1,472,964 (19,003) 208 Obligations of states and political subdivisions 387,534 (9,399) 50 — — — 387,534 (9,399) 50 Total temporarily impaired securities $ 1,619,266 $ (23,588) 200 $ 241,232 $ (4,814) 58 $ 1,860,498 $ (28,402) 258 Securities held to maturity Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count March 31, 2020 Obligations of states and political subdivisions $ — $ — — $ — $ — — $ — $ — — Total temporarily impaired securities $ — $ — — $ — $ — — $ — $ — — December 31, 2019 Obligations of states and political subdivisions $ — $ — — $ — $ — — $ — $ — — Total temporarily impaired securities $ — $ — — $ — $ — — $ — $ — — On January 1, 2020, Heartland adopted the amendments within ASU 2016-13, which replaced the legacy GAAP other-than-temporary impairment ("OTTI") model with a credit loss model. The credit loss model under ASC 326-30, applicable to AFS debt securities, requires the recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. See Note 1, "Basis of Presentation," to the consolidated financial statements included herein for a discussion of the impact of the adoption of ASU 2016-13. Heartland reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors, and the relative significance of any single factor can vary by security. Some factors Heartland may consider include changes in security ratings, financial condition of the issuer, as well as security and industry specific economic conditions. In addition, with regard to debt securities, Heartland may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. For certain debt securities in unrealized loss positions, Heartland prepares cash flow analyses to compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. The remaining unrealized losses on Heartland's mortgage and asset-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. The losses are not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three months ended March 31, 2020. The remaining unrealized losses on Heartland's obligations of states and political subdivisions are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the published credit ratings of these securities and the stability of the underlying municipalities. Because the decline in fair value is attributable to changes in interest rates or widening market spreads due to insurance company downgrades and not underlying credit quality, and because Heartland has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three months ended March 31, 2020. The credit loss model under ASC 326-30, applicable to held to maturity debt securities, requires the recognition of lifetime expected credit losses through an allowance account at the time when the security is purchased. The following table presents, in thousands, the activity in the allowance for credit losses for securities held to maturity by major security type for the quarter ended March 31, 2020: Obligations of states and political subdivisions Balance at December 31, 2019 $ — Impact of ASU 2016-13 adoption 158 Provision for credit losses 39 Balance at March 31, 2020 $ 197 The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of March 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ 3,060 AA, AA+, AA- 22,929 A+, A, A- 11,266 BBB 6,044 Not Rated 48,773 Total $ 92,072 Included in other securities were shares of stock in each Federal Home Loan Bank (the "FHLB") of Des Moines, Chicago, Dallas, San Francisco and Topeka at an amortized cost of $20.9 million at March 31, 2020 and $16.8 million at December 31, 2019. The Heartland banks are required by federal law to maintain FHLB stock as members of the various FHLBs. These equity securities are "restricted" in that they can only be sold back to the respective institutions from which they were acquired or another member institution at par. Therefore, the FHLB stock is less liquid than other marketable equity securities, and the fair value approximates amortized cost. Heartland considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. Heartland evaluates impairment in these investments based on the ultimate recoverability of the par value and, at March 31, 2020, did not consider the investments to be other than temporarily impaired.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
LOANS	LOANS Loans as of March 31, 2020, and December 31, 2019, were as follows, in thousands: March 31, 2020 December 31, 2019 Loans receivable held to maturity: Commercial and industrial $ 2,550,490 $ 2,530,809 Owner occupied commercial real estate 1,431,038 1,472,704 Non-owner occupied commercial real estate 1,551,787 1,495,877 Real estate construction 1,069,700 1,027,081 Agricultural and agricultural real estate 550,107 565,837 Residential real estate 792,540 832,277 Consumer 428,574 443,332 Total loans receivable held to maturity 8,374,236 8,367,917 Allowance for credit losses (97,350) (70,395) Loans receivable, net $ 8,276,886 $ 8,297,522 On January 1, 2020, Heartland adopted ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326)," and results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Additionally, Heartland reclassified its loan categories to align more closely with Federal Deposit Insurance Corporation ("FDIC") reporting requirements and classification codes, and all prior periods have been adjusted. As of March 31, 2020, Heartland had $31.8 million of accrued interest receivable, which is included in other assets on the consolidated balance sheet. Heartland does not consider accrued interest receivable in the allowance for credit losses calculation. The following table shows the balance in the allowance for credit losses at March 31, 2020, and December 31, 2019, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. As of March 31, 2020, loans individually assessed are collateral dependent and in the process of foreclosure or no longer share the same risk characteristics of the other loans in the pool. All other loans are collectively evaluated for losses. Loans individually evaluated were considered impaired at December 31, 2019. Allowance For Credit Losses Gross Loans Receivable Held to Maturity Individually Evaluated for Credit Losses Collectively Evaluated for Credit Losses Total Loans Individually Evaluated for Credit Losses Loans Collectively Evaluated for Credit Losses Total March 31, 2020 Commercial and industrial $ 3,695 $ 28,768 $ 32,463 $ 19,449 $ 2,531,041 $ 2,550,490 Owner occupied commercial real estate 1,054 9,282 10,336 6,943 1,424,095 1,431,038 Non-owner occupied commercial real estate 29 8,292 8,321 1,402 1,550,385 1,551,787 Real estate construction 51 22,900 22,951 200 1,069,500 1,069,700 Agricultural and agricultural real estate 986 3,811 4,797 17,450 532,657 550,107 Residential real estate 413 8,312 8,725 2,910 789,630 792,540 Consumer 114 9,643 9,757 485 428,089 428,574 Total $ 6,342 $ 91,008 $ 97,350 $ 48,839 $ 8,325,397 $ 8,374,236 December 31, 2019 Commercial and industrial $ 6,276 $ 24,511 $ 30,787 $ 31,814 $ 2,498,995 $ 2,530,809 Owner occupied commercial real estate 351 7,863 8,214 9,468 1,463,236 1,472,704 Non-owner occupied commercial real estate 33 7,769 7,802 1,730 1,494,147 1,495,877 Real estate construction — 11,599 11,599 685 1,026,396 1,027,081 Agricultural and agricultural real estate 916 4,757 5,673 18,554 547,283 565,837 Residential real estate 176 1,328 1,504 20,678 811,599 832,277 Consumer 419 4,397 4,816 4,123 439,209 443,332 Total $ 8,171 $ 62,224 $ 70,395 $ 87,052 $ 8,280,865 $ 8,367,917 The following tables present the amortized cost basis for loans on nonaccrual status and accruing loans past due 90 days or more at March 31, 2020, in thousands: Nonaccrual Nonaccrual Loans Total Accruing Loans March 31, 2020 Commercial and industrial $ 15,541 $ 11,466 $ 27,007 $ — Owner occupied commercial real estate 5,675 3,761 9,436 — Non-owner occupied commercial real estate 364 1,264 1,628 — Real estate construction 1,062 17 1,079 — Agricultural and agricultural real estate 7,225 14,485 21,710 — Residential mortgage 11,541 2,061 13,602 — Consumer 4,599 219 4,818 — Total $ 46,007 $ 33,273 $ 79,280 $ — Heartland recognized $0 of interest income on nonaccrual loans during the three months ended March 31, 2020. Heartland had $6.5 million of troubled debt restructured loans at March 31, 2020, of which $3.6 million were classified as nonaccrual and $2.9 million were accruing according to the restructured terms. Heartland had $7.6 million of troubled debt restructured loans at December 31, 2019, of which $3.8 million were classified as nonaccrual and $3.8 million were accruing according to the restructured terms. The following tables provide information on troubled debt restructured loans that were modified during the three-month periods ended March 31, 2020, and March 31, 2019, dollars in thousands: Three Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial and industrial — $ — $ — — $ — $ — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate — — — — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate 1 32 32 1 36 42 Consumer — — — — — — Total 1 $ 32 $ 32 1 $ 36 $ 42 The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification investment and post-modification investment amounts on Heartland's residential real estate troubled debt restructured loans for the three months ended March 31, 2020, is due to principal deferment collected from government guarantees and capitalized interest and escrow. At March 31, 2020, there were no commitments to extend credit to any of the borrowers with an existing troubled debt restructured loan. The table above does not include any loan modification made under COVID-19 modification programs. Refer to the "Overview" section of Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," for further information on these modifications. The following table shows troubled debt restructured loans for which there was a payment default during the three-month periods ended March 31, 2020, and March 31, 2019, that had been modified during the twelve-month period prior to default, in thousands: With Payment Defaults During the 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate 1 241 1 42 Consumer — — — — Total 1 $ 241 1 $ 42 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 and 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 watch, substandard, doubtful and loss loans. The "watch" rating is attached to loans where the borrower exhibits negative trends in financial circumstances due to borrower specific or systemic conditions that, if left uncorrected, threaten the borrower's 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 net worth and repaying capacity of the borrower and that 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 financial 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 in the borrowers' ability to repay the loan 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 as an operating entity. Specific pending events, such as capital injections, liquidations or perfection of liens on additional collateral, may strengthen the credit, thus deferring the rating of the loan as "loss" until the exact status of the loan can be determined. The loss rating is assigned to loans considered uncollectible. Heartland had no loans classified as loss or doubtful as of March 31, 2020 and December 31, 2019. The following table shows the risk category of loans by loan category and year of origination as of March 31, 2020, in thousands: Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 115,467 $ 449,215 $ 248,480 $ 295,304 $ 138,032 $ 395,428 $ 746,177 $ 2,388,103 Watch 5,931 10,902 8,927 11,106 8,438 745 33,670 79,719 Substandard 89 12,855 13,769 16,599 13,411 11,242 14,703 82,668 Commercial and industrial total $ 121,487 $ 472,972 $ 271,176 $ 323,009 $ 159,881 $ 407,415 $ 794,550 $ 2,550,490 Owner occupied commercial real estate Pass $ 75,869 $ 316,692 $ 296,556 $ 192,402 $ 134,910 $ 272,086 $ 40,197 $ 1,328,712 Watch 284 4,426 3,278 24,877 5,323 5,451 60 43,699 Substandard 1,322 11,678 18,301 6,093 4,044 13,828 3,361 58,627 Owner occupied commercial real estate total $ 77,475 $ 332,796 $ 318,135 $ 223,372 $ 144,277 $ 291,365 $ 43,618 $ 1,431,038 Non-owner occupied commercial real estate Pass $ 98,574 $ 413,112 $ 280,142 $ 205,981 $ 130,152 $ 328,567 $ 30,433 $ 1,486,961 Watch 260 2,102 8,873 4,864 3,630 7,290 — 27,019 Substandard 19,435 3,345 1,621 3,831 847 8,728 — 37,807 Non-owner occupied commercial real estate total $ 118,269 $ 418,559 $ 290,636 $ 214,676 $ 134,629 $ 344,585 $ 30,433 $ 1,551,787 Real estate construction Pass $ 52,053 $ 427,330 $ 338,112 $ 113,541 $ 38,848 $ 38,446 $ 13,395 $ 1,021,725 Watch — 9,237 10,215 393 15,040 1,223 824 36,932 Substandard 5,762 1,995 921 1,496 175 694 — 11,043 Real estate construction total $ 57,815 $ 438,562 $ 349,248 $ 115,430 $ 54,063 $ 40,363 $ 14,219 $ 1,069,700 Agricultural and agricultural real estate Pass $ 32,744 $ 109,410 $ 60,433 $ 44,231 $ 21,196 $ 47,884 $ 126,461 $ 442,359 Watch 770 9,672 7,048 1,376 2,451 5,702 10,788 37,807 Substandard 3,399 8,789 21,158 6,509 5,282 15,112 9,692 69,941 Agricultural and agricultural real estate total $ 36,913 $ 127,871 $ 88,639 $ 52,116 $ 28,929 $ 68,698 $ 146,941 $ 550,107 Residential real estate Pass $ 21,366 $ 89,884 $ 136,425 $ 106,682 $ 65,243 $ 299,054 $ 37,805 $ 756,459 Watch — 3,111 885 1,848 357 7,295 — 13,496 Substandard — 313 1,102 398 1,791 17,878 1,103 22,585 Residential real estate total $ 21,366 $ 93,308 $ 138,412 $ 108,928 $ 67,391 $ 324,227 $ 38,908 $ 792,540 Consumer Pass $ 8,972 $ 37,316 $ 25,875 $ 16,919 $ 5,593 $ 25,825 $ 295,687 $ 416,187 Watch — 339 451 198 216 865 1,946 4,015 Substandard 249 646 2,582 786 990 2,472 647 8,372 Consumer Total $ 9,221 $ 38,301 $ 28,908 $ 17,903 $ 6,799 $ 29,162 $ 298,280 $ 428,574 Total Pass $ 405,045 $ 1,842,959 $ 1,386,023 $ 975,060 $ 533,974 $ 1,407,290 $ 1,290,155 $ 7,840,506 Total Watch 7,245 39,789 39,677 44,662 35,455 28,571 47,288 242,687 Total Substandard 30,256 39,621 59,454 35,712 26,540 69,954 29,506 291,043 Total Loans $ 442,546 $ 1,922,369 $ 1,485,154 $ 1,055,434 $ 595,969 $ 1,505,815 $ 1,366,949 $ 8,374,236 The following table shows Heartland's loan portfolio by credit quality indicator as of December 31, 2019, in thousands: Pass Nonpass Total Commercial and industrial $ 2,352,131 $ 178,678 $ 2,530,809 Owner occupied commercial real estate 1,369,290 103,414 1,472,704 Non-owner occupied commercial real estate 1,429,760 66,117 1,495,877 Real estate construction 984,736 42,345 1,027,081 Agricultural and agricultural real estate 454,272 111,565 565,837 Residential real estate 790,226 42,051 832,277 Consumer 430,733 12,599 443,332 Total loans receivable held to maturity $ 7,811,148 $ 556,769 $ 8,367,917 The nonpass category in the table above is comprised of approximately 60% watch loans and 40% substandard loans as of December 31, 2019. The percent of nonpass loans on nonaccrual status as of December 31, 2019, was 14%. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. As of March 31, 2020, Heartland had $2.2 million of loans secured by residential real estate property that were in the process of foreclosure. The following table sets forth information regarding Heartland's accruing and nonaccrual loans at March 31, 2020, and December 31, 2019, in thousands: Accruing Loans 30-59 Days 60-89 Days 90 Days or Total Current Nonaccrual Total Loans March 31, 2020 Commercial and industrial $ 5,346 $ 500 $ — $ 5,846 $ 2,517,637 $ 27,007 $ 2,550,490 Owner occupied commercial real estate 1,462 1,028 — 2,490 1,419,112 9,436 1,431,038 Non-owner occupied commercial real estate 2,736 7,154 — 9,890 1,540,269 1,628 1,551,787 Real estate construction 1,940 587 — 2,527 1,066,094 1,079 1,069,700 Agricultural and agricultural real estate 2,789 280 — 3,069 525,328 21,710 550,107 Residential real estate 5,637 147 — 5,784 773,154 13,602 792,540 Consumer 1,783 259 — 2,042 421,714 4,818 428,574 Total gross loans receivable held to maturity $ 21,693 $ 9,955 $ — $ 31,648 $ 8,263,308 $ 79,280 $ 8,374,236 December 31, 2019 Commercial and industrial $ 5,121 $ 904 $ 3,899 $ 9,924 $ 2,491,110 $ 29,775 $ 2,530,809 Owner occupied commercial real estate 3,487 690 — 4,177 1,461,589 6,938 1,472,704 Non-owner occupied commercial real estate 614 81 — 695 1,493,619 1,563 1,495,877 Real estate construction 5,689 72 — 5,761 1,020,153 1,167 1,027,081 Agricultural and agricultural real estate 3,734 79 26 3,839 541,455 20,543 565,837 Residential real estate 4,166 24 180 4,370 814,840 13,067 832,277 Consumer 2,511 651 — 3,162 436,675 3,495 443,332 Total gross loans receivable held to maturity $ 25,322 $ 2,501 $ 4,105 $ 31,928 $ 8,259,441 $ 76,548 $ 8,367,917 Loans delinquent 30 to 89 days as a percent of total loans were 0.38% at March 31, 2020, compared to 0.33% at December 31, 2019. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. All individually assessed loans are reviewed at least annually. As of December 31, 2019, the majority of Heartland's impaired loans were those that were nonaccrual, were past due 90 days or more and still accruing or have had their terms restructured in a troubled debt restructuring. The following table presents the unpaid principal balance that was contractually due at December 31, 2019, the outstanding loan balance recorded on the consolidated balance sheets at December 31, 2019, any related allowance recorded for those loans as of December 31, 2019, the average outstanding loan balances recorded on the consolidated balance sheets during the year ended December 31, 2019, and the interest income recognized on the impaired loans during the year ended December 31, 2019, in thousands: Unpaid Loan Related Year-to- Year-to- December 31, 2019 Impaired loans with a related allowance: Commercial $ 11,727 $ 11,710 $ 6,276 $ 11,757 $ 6 Owner occupied commercial real estate 712 712 352 1,435 22 Non-owner occupied commercial real estate 138 138 33 — — Real estate construction 17 17 — — — Agricultural and agricultural real estate 2,751 2,237 916 2,739 — Residential real estate 1,378 1,378 176 1,116 — Consumer 998 997 419 1,170 11 Total loans held to maturity $ 17,721 $ 17,189 $ 8,172 $ 18,217 $ 39 Impaired loans without a related allowance: Commercial $ 22,525 $ 20,104 $ — $ 19,141 $ 782 Owner occupied commercial real estate 8,756 8,756 — 8,337 341 Non-owner occupied commercial real estate 1,592 1,592 — 1,515 62 Real estate construction 668 668 — 636 26 Agricultural and agricultural real estate 19,113 16,317 — 16,837 60 Residential real estate 19,382 19,300 — 17,073 280 Consumer 3,135 3,126 — 4,182 45 Total loans held to maturity $ 75,171 $ 69,863 $ — $ 67,721 $ 1,596 Total impaired loans held to maturity: Commercial $ 34,252 $ 31,814 $ 6,276 $ 30,898 $ 788 Owner occupied commercial real estate 9,468 9,468 352 9,772 363 Non-owner occupied commercial real estate 1,730 1,730 33 1,515 62 Real estate construction 685 685 — 636 26 Agricultural and agricultural real estate 21,864 18,554 916 19,576 60 Residential real estate 20,760 20,678 176 18,189 280 Consumer 4,133 4,123 419 5,352 56 Total impaired loans held to maturity $ 92,892 $ 87,052 $ 8,172 $ 85,938 $ 1,635 On November 30, 2019, Heartland's Illinois Bank & Trust subsidiary completed the acquisition of substantially all of the assets and substantially all of the deposits and certain other liabilities of Rockford Bank & Trust Company, headquartered in Rockford, Illinois. As of November 30, 2019, Rockford Bank & Trust had gross loans of $366.6 million, and the estimated fair value of the loans acquired was $354.0 million.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	3 Months Ended
	Mar. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]
ALLOWANCE FOR CREDIT LOSSES	ALLOWANCE FOR CREDIT LOSSES Changes in the allowance for credit losses on loans for the three month periods ended March 31, 2020, and March 31, 2019, were as follows, in thousands: Commercial and Industrial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential Mortgage Consumer Total Balance at December 31, 2019 $ 30,787 $ 8,214 $ 7,802 $ 11,599 $ 5,673 $ 1,504 $ 4,816 $ 70,395 Impact of ASU 2016-13 adoption 3,147 (407) (2,834) 3,413 (380) 4,817 4,315 12,071 Charge-offs (5,596) — (21) (253) (79) (352) (6,301) Recoveries 352 1 — 5 826 3 133 1,320 Provision 3,773 2,528 3,353 7,955 (1,069) 2,480 845 19,865 Balance at March 31, 2020 $ 32,463 $ 10,336 $ 8,321 $ 22,951 $ 4,797 $ 8,725 $ 9,757 $ 97,350 Commercial and Industrial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential Mortgage Consumer Total Balance at December 31, 2018 $ 26,306 $ 6,525 $ 7,430 $ 9,679 $ 4,914 $ 1,813 $ 5,296 $ 61,963 Charge-offs (980) (23) — (54) (379) (140) (374) (1,950) Recoveries 308 89 40 4 328 52 170 991 Provision 1,616 (261) (344) 365 655 (102) (294) 1,635 Balance at March 31, 2019 $ 27,250 $ 6,330 $ 7,126 $ 9,994 $ 5,518 $ 1,623 $ 4,798 $ 62,639 Changes in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2020, were as follows: Balance at December 31, 2019 $ 248 Impact of ASU 2016-13 adoption 13,604 Provision 1,616 Balance at March 31, 2020 $ 15,468 Prior to the adoption of ASU 2016-13, the allowance for credit losses on unfunded commitments was considered immaterial. Management allocates the allowance for credit losses by pools of risk within each loan portfolio. The allocation of the allowance for credit losses by loan portfolio is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular category. The total allowance for credit 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	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS	GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETSHeartland had goodwill of $446.3 million at both March 31, 2020, and December 31, 2019. Heartland conducts its annual internal assessment of the goodwill both at the consolidated level and at its subsidiaries as of September 30. There was no goodwill impairment as of the most recent assessment. Due to the COVID-19 pandemic and economic conditions, an interim qualitative assessment of goodwill was performed during the first quarter of 2020, and no goodwill impairment was identified. Heartland recorded $19.2 million of goodwill and $1.8 million of core deposit intangibles in connection with the acquisition of substantially all of the assets and substantially all of the deposits and certain other liabilities of Rockford Bank and Trust Company, headquartered in Rockford, Illinois on November 30, 2019. Heartland recorded $35.4 million of goodwill and $11.4 million of core deposit intangibles in connection with the acquisition of Blue Valley Ban Corp., parent company of Bank of Blue Valley, headquartered in Overland Park, Kansas on May 10, 2019. The core deposit intangibles recorded with the Blue Valley Ban Corp. acquisition is not deductible for tax purposes and is expected to be amortized over a period of 10 years on an accelerated basis. Goodwill related to the Blue Valley Ban Corp. acquisition resulted from expected operational synergies, increased market presence, cross-selling opportunities, and expanded business lines and is not deductible for tax purposes. The core deposit intangibles and goodwill recorded with the Rockford Bank and Trust Company acquisition of substantially all of the assets and substantially all of the deposits and certain other liabilities, is deductible for tax purposes and the core deposit intangibles are expected to be amortized over a period of 10 years on an accelerated basis. Heartland's intangible assets consist of core deposit intangibles, mortgage servicing rights, customer relationship intangibles, and commercial servicing rights. The gross carrying amount of these intangible assets and the associated accumulated amortization at March 31, 2020, and December 31, 2019, are presented in the table below, in thousands: March 31, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 96,821 $ 51,309 $ 45,512 $ 96,821 $ 48,338 $ 48,483 Customer relationship intangibles 1,177 982 195 1,177 972 205 Mortgage servicing rights 8,262 4,137 4,125 7,886 2,265 5,621 Commercial servicing rights 6,990 5,895 1,095 6,952 5,837 1,115 Total $ 113,250 $ 62,323 $ 50,927 $ 112,836 $ 57,412 $ 55,424 On April 30, 2019, Dubuque Bank and Trust Company closed on the sale of substantially all its servicing rights portfolio, which contained loans with an unpaid principal balance of $3.31 billion to PNC Bank, N.A. The transaction qualified as a sale, and $20.6 million of mortgage servicing rights were de-recognized on the consolidated balance sheet as of June 30, 2019. Cash of approximately $36.6 million was received during 2019, and Heartland recorded a gain on the sale of this portfolio of approximately $14.5 million. In the agreement, which included customary terms and conditions, Dubuque Bank and Trust Company provided interim servicing of the loans until the transfer date, which was August 1, 2019. The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Customer Mortgage Commercial Nine months ending December 31, 2020 $ 7,606 $ 27 $ 920 $ 223 $ 8,776 Year ending December 31, 2021 8,691 35 801 268 9,795 2022 7,102 34 687 239 8,062 2023 6,201 34 572 161 6,968 2024 5,108 33 458 94 5,693 2025 4,265 32 344 110 4,751 Thereafter 6,539 — 343 — 6,882 Total $ 45,512 $ 195 $ 4,125 $ 1,095 $ 50,927 Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of March 31, 2020. Heartland's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were approximately $618.9 million at March 31, 2020 compared to $616.7 million at December 31, 2019. Custodial escrow balances maintained in connection with the mortgage loan servicing portfolio were approximately $8.2 million at March 31, 2020 and $5.0 million at December 31, 2019. At March 31, 2020, the fair value of the mortgage servicing rights was estimated at $4.1 million compared to $5.6 million at December 31, 2019. 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 of the mortgage servicing rights are considered in the calculation. The average constant prepayment rate was 17.50% for the March 31, 2020 valuation compared to 14.20% for the December 31, 2019 valuation. The discount rate was 9.03% for both March 31, 2020 and December 31, 2019 valuations. The average capitalization rate for the first three m onths of 2020 ranged from 95 to 116 b asis points compared to a range of 93 to 117 basis points for the first three months of 2019. Fees collected for the servicing of mortgage loans for others were $409,000 and $427,000 for the quarters ended March 31, 2020 and March 31, 2019, respectively. The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the three months ended March 31, 2020, and March 31, 2019: 2020 2019 Balance at January 1, $ 5,621 $ 29,363 Originations 376 198 Amortization (307) (1,500) Valuation allowance (1,565) (589) Balance at period end $ 4,125 $ 27,472 Mortgage servicing rights, net to servicing portfolio 0.67 % 0.68 % Heartland's commercial servicing portfolio is comprised of loans guaranteed by the Small Business Administration and United States Department of Agriculture that have been sold with servicing retained by Heartland, which totaled $77.6 million at March 31, 2020 and $82.1 million at December 31, 2019. The commercial servicing rights portfolio is separated into two tranches at the respective Heartland subsidiary, loans with a term of less than 20 years and loans with a term of more than 20 years. Fees collected for the servicing of commercial loans for others were $118,000 and $380,000 for the quarter ended March 31, 2020 and March 31, 2019, respectively. The fair value of each commercial servicing rights portfolio is calculated based upon a discounted cash flow analysis. Cash flow assumptions, including prepayment speeds and servicing costs, are considered in the calculation. The range of average constant prepayment rates for the valuations was 15.77% to 19.85% as of March 31, 2020, compared to 14.25% to 18.08% as of December 31, 2019. The discount rate range was 11.02% to 14.37% for the March 31, 2020, valuations compared to 10.65% to 13.94% for the December 31, 2019, valuations. The capitalization rate for both 2020 and 2019 ranged from 310 to 445 basis points. The total fair value of Heartland's commercial servicing rights was estimated at $1.4 million as of March 31, 2020, and $1.6 million as of December 31, 2019. The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the three-months ended March 31, 2020, and March 31, 2019: 2020 2019 Balance at January 1, $ 1,115 $ 1,709 Originations 38 68 Amortization (58) (281) Balance at period end $ 1,095 $ 1,496 Fair value of commercial servicing rights $ 1,407 $ 1,926 Commercial servicing rights, net to servicing portfolio 1.41 % 1.58 % 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 at each Heartland subsidiary 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 each Heartland subsidiary. At March 31, 2020, a $524,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $2.0 million valuation allowance was required on the mortgage servicing rights 30-year tranche. At December 31, 2019, a $114,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $797,000 valuation allowance was required on the mortgage servicing rights 30-year tranche. At both March 31, 2020 and December 31, 2019, no valuation allowance was required on commercial servicing rights with a term less than 20 years and no valuation allowance was required on commercial servicing rights with a term greater than 20 years. The following table summarizes, in thousands, the book value, the fair value of each tranche of the mortgage servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2020, and December 31, 2019: March 31, 2020 Book Value 15-Year Tranche Fair Value 15-Year Tranche Impairment 15-Year Tranche Book Value 30-Year Tranche Fair Value 30-Year Tranche Impairment 30-Year Tranche First Bank & Trust 1,478 954 524 5,181 3,171 2,010 Total $ 1,478 $ 954 $ 524 $ 5,181 $ 3,171 $ 2,010 December 31, 2019 First Bank & Trust 1,482 1,368 114 5,050 4,253 797 Total $ 1,482 $ 1,368 $ 114 $ 5,050 $ 4,253 $ 797 The following table summarizes, in thousands, the book value, the fair value of each tranche of the commercial servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2020, and December 31, 2019: March 31, 2020 Book Value Fair Value Impairment Book Value Fair Value Impairment Premier Valley Bank 1 12 — 125 145 — Wisconsin Bank & Trust 132 237 — 837 1,013 — Total $ 133 $ 249 $ — $ 962 $ 1,158 $ — December 31, 2019 Premier Valley Bank 1 13 — 135 161 — Wisconsin Bank & Trust 128 272 — 851 1,148 — Total $ 129 $ 285 $ — $ 986 $ 1,309 $ —

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTSHeartland 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 $3.9 million of cash as collateral at March 31, 2020 compared to $1.9 million at December 31, 2019. At both March 31, 2020 and December 31, 2019, no collateral was required to be pledged by Heartland's counterparties. 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 related to derivatives will be reclassified to interest expense as interest payments are received or made on Heartland's variable-rate liabilities. For the three months ended March 31, 2020, 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 $183,000. For the next twelve months, Heartland estimates that cash payments and reclassification from accumulated other comprehensive income to interest expense will total $733,000. Heartland entered into six forward starting interest rate swap transactions to effectively convert Heartland Financial Statutory Trust IV, V, VI, and VII, which total $85.0 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 six swap transactions are designated as cash flow hedges of the changes in LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on $105.0 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 2019, the interest rate swap transactions associated with Morrill Statutory Trust I and II, totaling $20.0 million, matured and the fixed rate debt has been converted to variable rate subordinated debentures. During the first quarter of 2020, the interest rate swap transaction associated with Heartland Financial Statutory Trust VI, totaling $20.0 million, matured and the fixed rate debt has been converted to a variable rate subordinated debenture. On May 18, 2018, Heartland acquired cash flow hedges related to OCGI Statutory Trust III and OCGI Capital Trust IV with notional amounts of $3.0 million and $6.0 million, respectively, in the First Bank Lubbock Bancshares, Inc. transaction. The cash flow hedges effectively convert OCGI Statutory Trust III and OGCI Capital Trust IV from variable rate subordinated debentures to fixed rate debt. These swaps are designated as cash flow hedges of the changes in LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on $9.0 million of Heartland's subordinated debentures that reset quarterly on a specified reset date. The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at March 31, 2020, and December 31, 2019, in thousands: Notional Fair Balance Receive Weighted Maturity March 31, 2020 Interest rate swap $ 25,000 $ (435) Other liabilities 0.843 % 2.255 % 03/17/2021 Interest rate swap 24,667 (216) Other liabilities 3.363 3.674 05/10/2021 Interest rate swap 25,000 (2,587) Other liabilities 3.429 5.425 07/24/2028 Interest rate swap 20,000 (1,648) Other liabilities 0.741 2.390 06/15/2024 Interest rate swap 20,000 (1,502) Other liabilities 1.580 2.352 03/01/2024 Interest rate swap 6,000 (106) Other liabilities 0.741 1.866 06/15/2021 Interest rate swap 3,000 (51) Other liabilities 1.219 1.878 06/30/2021 December 31, 2019 Interest rate swap $ 25,000 $ (167) Other liabilities 1.900 % 2.255 % 03/17/2021 Interest rate swap 20,000 (67) Other liabilities 2.043 3.355 01/07/2020 Interest rate swap 25,667 135 Other assets 4.215 3.674 05/10/2021 Interest rate swap 25,750 (1,384) Other liabilities 4.280 5.425 07/24/2028 Interest rate swap 20,000 (614) Other liabilities 1.894 2.390 06/15/2024 Interest rate swap 20,000 (561) Other liabilities 1.907 2.352 03/01/2024 Interest rate swap 6,000 (15) Other liabilities 1.894 1.866 06/15/2021 Interest rate swap 3,000 (9) Other liabilities 1.831 1.878 06/30/2021 The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Effective Portion Ineffective Portion Recognized in OCI Reclassified from AOCI into Income Recognized in Income on Derivatives Amount of Category Amount of Category Amount of Three Months Ended March 31, 2020 Interest rate swaps $ (3,863) Interest expense $ 183 Other income $ — Three Months Ended March 31, 2019 Interest rate swaps $ (1,340) Interest expense $ (165) Other income $ — Fair Value Hedges 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 the 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. Heartland was required to pledge $3.9 million and $3.4 million of cash as collateral for these fair value hedges at March 31, 2020, and December 31, 2019, respectively. The table below identifies the notional amount, fair value and balance sheet category of Heartland's fair value hedges at March 31, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category March 31, 2020 Fair value hedges 21,149 (2,930) Other liabilities December 31, 2019 Fair value hedges 21,250 $ (1,253) Other liabilities The table below identifies the gains and losses recognized on Heartland's fair value hedges for the three month periods ended March 31, 2020, and March 31, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended March 31, 2020 Fair value hedges $ (1,677) Interest income Three Months Ended March 31, 2019 Fair value hedges $ 894 Interest income Embedded Derivatives Heartland has fixed rate loans with embedded derivatives. The loans contain terms that affect the cash flows or value of the loan similar to a derivative instrument, and therefore are considered to contain an embedded derivative. The embedded derivatives are bifurcated from the loans because the terms of the derivative instrument are not clearly and closely related to the loans. The embedded derivatives are recorded at fair value on the consolidated balance sheets as a part of other assets, and changes in the fair value are a component of noninterest income. The table below identifies the notional amount, fair value and balance sheet category of Heartland's embedded derivatives at March 31, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category March 31, 2020 Embedded derivatives $ 9,522 $ 826 Other assets December 31, 2019 Embedded derivatives $ 9,627 $ 465 Other assets The table below identifies the gains and losses recognized on Heartland's embedded derivatives for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended March 31, 2020 Embedded derivatives $ 361 Other noninterest income Three Months Ended March 31, 2019 Embedded derivatives $ 889 Other noninterest income Back-to-Back Loan Swaps Heartland has 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 free standing financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. Heartland was required to post $48.9 million and $20.2 million as of March 31, 2020, and December 31, 2019, respectively, as collateral related to these back-to-back swaps. Heartland's counterparties were required to pledge $0 at March 31, 2020, and $0 at December 31, 2019. Any gains and losses on these back-to-back swaps are recorded in noninterest income on the consolidated statements of income, and for the three months ended March 31, 2020 and March 31, 2019, no gain or loss was recognized. The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at March 31, 2020, and December 31, 2019, in thousands: Notional Fair Balance Sheet Weighted Weighted March 31, 2020 Customer interest rate swaps $ 415,024 $ 47,476 Other assets 4.58 % 3.71 % Customer interest rate swaps 415,024 (47,476) Other liabilities 3.71 4.58 December 31, 2019 Customer interest rate swaps $ 374,191 $ 16,927 Other assets 4.68 % 4.05 % Customer interest rate swaps 374,191 (16,927) Other liabilities 4.05 4.68 Other Free Standing Derivatives Heartland 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. Heartland enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on the commitments to fund the loans as well as on residential mortgage loans available for sale. The fair value of these commitments is recorded on the consolidated balance sheets, with the changes in fair value recorded in the consolidated statements of income as a component of gains on sale of loans held for sale. These derivative contracts are designated as free standing derivative contracts and are not designated against specific assets and liabilities on the consolidated balance sheets or forecasted transactions and therefore do not qualify for hedge accounting treatment. Heartland was required to pledge no collateral at both March 31, 2020, and December 31, 2019. Heartland's counterparties were required to pledge no collateral at both March 31, 2020 and December 31, 2019, as collateral for these forward commitments. Heartland acquired undesignated interest rate swaps in 2015. These swaps were entered into primarily for the benefit of customers seeking to manage their interest rate risk and are not designated against specific assets or liabilities on the consolidated balance sheet or forecasted transactions and therefore do not qualify for hedge accounting in accordance with ASC 815. These swaps are carried at fair value on the consolidated balance sheets as a component of other liabilities, with changes in the fair value recorded as a component of other noninterest income. The table below identifies the balance sheet category and fair values of Heartland's other free standing derivative instruments not designated as hedging instruments at March 31, 2020, and December 31, 2019, in thousands: Balance Sheet Category Notional Amount Fair Value March 31, 2020 Interest rate lock commitments (mortgage) Other assets $ 70,051 $ 2,457 Forward commitments Other assets 5,000 30 Forward commitments Other liabilities 64,500 (1,273) Undesignated interest rate swaps Other liabilities 9,522 (826) December 31, 2019 Interest rate lock commitments (mortgage) Other assets $ 20,356 $ 681 Forward commitments Other assets 16,000 15 Forward commitments Other liabilities 36,500 (113) Undesignated interest rate swaps Other liabilities 9,627 (465) The table below identifies the income statement category of the gains and losses recognized in income on Heartland's other free standing derivative instruments not designated as hedging instruments for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended March 31, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 1,698 Forward commitments Net gains on sale of loans held for sale (1,146) Undesignated interest rate swaps Other noninterest income (361) Three Months Ended March 31, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 264 Forward commitments Net gains on sale of loans held for sale 117 Undesignated interest rate swaps Other noninterest income 889

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2020
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 carried at fair value, which include available for sale, trading securities and equity securities with a readily determinable fair value, 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 the 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 and asset-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. On a quarterly basis, a secondary independent pricing service is used for the securities portfolio to validate the pricing from Heartland's primary pricing service. Equity Securities with a Readily Determinable Fair Value Equity securities with a readily determinable fair value generally include Community Reinvestment Act mutual funds and are classified as Level 2 due to the infrequent trading of these securities. The fair value is based on the price per share. 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, certain loans are considered collateral dependent and an allowance for credit losses is established. The fair value of individually assessed loans is measured using the fair value of the collateral. In accordance with ASC 820, individually assessed 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. 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 the assumptions in the discounted cash flow analysis 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 guaranteed by the Small Business Administration and the United States Department of Agriculture that have been sold with servicing retained by Heartland. 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 March 31, 2020, and December 31, 2019, 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 March 31, 2020, and December 31, 2019, 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 March 31, 2020 Assets Securities available for sale U.S. government corporations and agencies $ 9,916 $ 8,569 $ 1,347 $ — Mortgage and asset-backed securities 2,520,004 — 2,520,004 — Obligations of states and political subdivisions 940,441 — 940,441 — Equity securities with a readily determinable fair value 18,260 — 18,260 — Derivative financial instruments (1) 48,302 — 48,302 — Interest rate lock commitments 2,457 — — 2,457 Forward commitments 30 — 30 — Total assets at fair value $ 3,539,410 $ 8,569 $ 3,528,384 $ 2,457 Liabilities Derivative financial instruments (2) $ 57,777 $ — $ 57,777 $ — Forward commitments 1,273 — 1,273 — Total liabilities at fair value $ 59,050 $ — $ 59,050 $ — December 31, 2019 Assets Securities available for sale U.S. government corporations and agencies $ 9,893 $ 8,503 $ 1,390 $ — Mortgage and asset-backed securities 2,577,278 — 2,577,278 — Obligations of states and political subdivisions 707,190 — 707,190 — Equity securities 18,435 — 18,435 — Derivative financial instruments (1) 17,527 — 17,527 — Interest rate lock commitments 681 — — 681 Total assets at fair value $ 3,331,019 $ 8,503 $ 3,321,835 $ 681 Liabilities Derivative financial instruments (2) $ 21,462 $ — $ 21,462 $ — Forward commitments 113 — 113 — Total liabilities at fair value $ 21,575 $ — $ 21,575 $ — (1) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps, embedded derivatives and free standing derivative instruments. The tables below present Heartland's assets that are measured at fair value on a nonrecurring basis, in thousands: Fair Value Measurements at Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent loans: Commercial and industrial $ 5,494 $ — $ — $ 5,494 $ 153 Owner occupied commercial real estate 2,129 — — 2,129 — Non-owner occupied commercial real estate 109 — — 109 — Real estate construction 132 — — 132 — Agricultural and agricultural real estate 1,980 — — 1,980 — Residential real estate 543 — — 543 52 Consumer 153 — — 153 — Total collateral dependent loans $ 10,540 $ — $ — $ 10,540 $ 205 Loans held for sale $ 22,957 $ — $ 22,957 $ — $ (1,734) Other real estate owned $ 6,074 $ — $ — $ 6,074 $ 66 Premises, furniture and equipment held for sale $ 2,967 $ — $ — $ 2,967 $ — Servicing rights $ 4,125 $ — $ — $ 4,125 $ 1,579 Fair Value Measurements at Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent impaired loans: Commercial and industrial $ 15,173 $ — $ — $ 15,173 $ 1,114 Owner occupied commercial real estate 1,352 — — 1,352 — Non-owner occupied commercial real estate 1,305 — — 1,305 — Real estate construction — — — — — Agricultural and agricultural real estate 12,623 — — 12,623 1,254 Residential real estate 4,978 — — 4,978 82 Consumer 1,033 — — 1,033 — Total collateral dependent impaired loans $ 36,464 $ — $ — $ 36,464 $ 2,450 Loans held for sale $ 26,748 $ — $ 26,748 $ — $ (980) Other real estate owned $ 6,914 $ — $ — $ 6,914 $ 947 Premises, furniture and equipment held for sale $ 2,967 $ — $ — $ 2,967 $ 735 Servicing rights $ 5,621 $ — $ — $ 5,621 $ 911 The following tables present additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at Valuation Unobservable Range Interest rate lock commitments $ 2,457 Discounted cash flows Closing ratio 0-99% (88%) (1) Other real estate owned 6,074 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 4,125 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,967 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent impaired loans: Commercial 5,494 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 2,129 Modified appraised value Third party appraisal (2) Appraisal discount 0-6% (3) Non-owner occupied commercial real estate 109 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Real estate construction 132 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Agricultural and agricultural real estate 1,980 Modified appraised value Third party appraisal (2) Appraisal discount 0-6% (3) Residential real estate 543 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Consumer 153 Modified appraised value Third party valuation (2) Valuation discount 0-7% (3) (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. The weighted average closing ratio for PrimeWest Mortgage Corporation is 88%. (2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. (4) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups. Fair Value at Valuation Unobservable Range Interest rate lock commitments $ 681 Discounted cash flows Closing ratio 0-99% (90%) (1) Other real estate owned 6,914 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,621 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,967 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent impaired loans: Commercial 15,173 Modified appraised value Third party appraisal (2) Appraisal discount 0-25% (3) Owner occupied commercial real estate 1,352 Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Non-owner occupied commercial real estate 1,305 Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Real estate construction — Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Agricultural and agricultural real estate 12,623 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Residential real estate 3,088 Modified appraised value Third party appraisal (2) Appraisal discount 0-25% (3) Consumer 988 Modified appraised value Third party valuation (2) Valuation discount 0-10% (3) (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. (2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. (4) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups. The changes in fair value of the interest rate lock commitments, which are Level 3 financial instruments measured on a recurring basis, are summarized in the following table, in thousands: For the Three Months Ended For the Year Ended Balance at January 1, $ 681 $ 725 Total gains (losses) included in earnings 1,698 18 Issuances 2,478 10,702 Settlements (2,400) (10,764) Balance at period end $ 2,457 $ 681 Gains included in gains (losses) on sale of loans held for sale attributable to interest rate lock commitments held at March 31, 2020, and December 31, 2019, were $2.5 million and $681,000, respectively. The table below is a summary of the estimated fair value of Heartland's financial instruments (as defined by ASC 825) as of March 31, 2020, and December 31, 2019, 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, including the value of the commercial and mortgage servicing rights, premises, furniture and equipment, premises, furniture and equipment held for sale, OREO, 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 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 239,743 $ 239,743 $ 239,743 $ — $ — Time deposits in other financial institutions 3,568 3,568 3,568 — — Securities: Carried at fair value 3,488,621 3,488,621 8,569 3,480,052 — Held to maturity 91,875 101,375 — 101,375 — Other investments 35,370 35,370 — 35,370 — Loans held for sale 22,957 22,957 — 22,957 — Loans, net: Commercial and industrial 2,518,034 2,507,060 — 2,501,566 5,494 Owner occupied commercial real estate 1,420,702 1,456,304 — 1,454,175 2,129 Non-owner occupied commercial real estate 1,543,466 1,567,555 — 1,567,446 109 Real estate construction 1,046,749 1,076,645 — 1,076,513 132 Agricultural and agricultural real estate 545,310 552,823 — 550,843 1,980 Residential real estate 783,815 798,549 — 798,006 543 Consumer 418,817 431,583 — 431,430 153 Total Loans, net 8,276,893 8,390,519 — 8,379,979 10,540 Cash surrender value on life insurance 172,140 172,140 — 172,140 — Derivative financial instruments (1) 48,302 48,302 — 48,302 — Interest rate lock commitments 2,457 2,457 — — 2,457 Forward commitments 30 30 — 30 — Financial liabilities: Deposits Demand deposits 3,696,974 3,696,974 — 3,696,974 — Savings deposits 6,366,610 6,366,610 — 6,366,610 — Time deposits 1,110,441 1,110,441 — 1,110,441 — Deposits held for sale — — — — — Short term borrowings 121,442 121,442 — 121,442 — Other borrowings 276,150 280,447 — 280,447 — Derivative financial instruments (2) 57,777 57,777 — 57,777 — Forward commitments 1,273 1,273 — 1,273 — (1) Includes embedded derivatives and back-to-back loan swaps. (2) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 378,734 $ 378,734 $ 378,734 $ — $ — Time deposits in other financial institutions 3,564 3,564 3,564 — — Securities: Carried at fair value 3,312,796 3,312,796 8,503 3,304,293 — Held to maturity 91,324 100,484 — 100,484 — Other investments 31,321 31,321 — 31,321 — Loans held for sale 26,748 26,748 — 26,748 — Loans, net: Commercial and industrial 2,530,809 2,621,253 — 2,606,080 15,173 Owner occupied commercial real estate 1,472,704 1,409,388 — 1,408,036 1,352 Non-owner occupied commercial real estate 1,495,877 1,397,527 — 1,396,222 1,305 Real estate construction 1,027,081 924,041 — 924,041 — Agricultural and agricultural real estate 565,837 576,821 — 564,198 12,623 Residential real estate 832,277 841,453 — 838,365 3,088 Consumer 443,332 470,927 — 469,939 988 Total Loans, net 8,297,522 8,243,343 — 8,206,879 36,464 Cash surrender value on life insurance 171,625 171,625 — 171,625 — Derivative financial instruments (1) 17,527 17,527 — 17,527 — Interest rate lock commitments 681 681 — — 681 Financial liabilities: Deposits Demand deposits 3,543,863 3,543,863 — 3,543,863 — Savings deposits 6,307,425 6,307,425 — 6,307,425 — Time deposits 1,193,043 1,193,043 — 1,193,043 — Short term borrowings 182,626 182,626 — 182,626 — Other borrowings 275,773 278,169 — 278,169 — Derivative financial instruments (1) 21,462 21,462 — 21,462 — Forward commitments 113 113 — 113 — (1) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges. 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 equity securities with a readily determinable fair value and debt 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 — The fair value of loans is determined using an exit price methodology. The exit price estimation of fair value is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk. The fair value of impaired loans is measured using the fair value of the underlying collateral. The fair value of loans held for sale is estimated using quoted market prices. Cash surrender value on life insurance — Life insurance policies are held on certain officers. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. As such, Heartland classifies the estimated fair value of the cash surrender value on life insurance as Level 2. 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 prices, and, when appropriate, the current creditworthiness of the counter-party. 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. 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.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE On January 1, 2018, Heartland adopted ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606), and all subsequent ASUs that modified Topic 606. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with loan servicing income, bank owned life insurance, derivatives and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as service charges and fees, trust fees, and brokerage and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of Heartland's revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges and Fees Service charges and fees consist of revenue generated from deposit account related service charges and fees, overdraft fees, customer service fees and other service charges, credit card fee income, debit card income and other service charges and fees. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders and other deposit account related fees. Heartland's performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees, including overdraft fees, are largely transactional based, and therefore, the performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Customer service fees and other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. Heartland's performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Credit card fee income and debit card income are comprised of interchange fees, ATM fees, and merchant services income. Credit card fee income and debit card income are earned whenever the banks' debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a bank cardholder uses an ATM that is not owned by one of Heartland's banks or a non-bank cardholder uses Heartland-owned ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Trust Fees Trust fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. Heartland's performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the average daily market value or month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days before or after month end through a direct charge to customers’ accounts. Heartland does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. Heartland's performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Brokerage and Insurance Commissions Brokerage commission primarily consist of commissions related to broker-dealer contracts. The contracts are between the customer and the broker-dealer, and Heartland satisfies its performance obligation and earns commission when the transactions are completed. The recognition of revenue is based on a defined fee schedule and does not require significant judgment. Payment is received shortly after services are rendered. Insurance commissions are related to commissions received directly from the insurance carrier. Heartland acts as an insurance agent between the customer and the insurance carrier. Heartland's performance obligations and associated fee and commission income are defined with each insurance product with the insurance company. When insurance payments are received from customers, a portion of the payment is recognized as commission revenue. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three-months ended March 31, 2020, and 2019, in thousands: Three Months Ended 2020 2019 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 3,438 $ 2,977 Overdraft fees 2,809 2,744 Customer service and other service fees 59 82 Credit card fee income 3,900 3,349 Debit card income 1,815 3,642 Total service charges and fees $ 12,021 $ 12,794 Trust fees 5,022 4,474 Brokerage and insurance commissions 733 734 Total noninterest income in-scope of Topic 606 $ 17,776 $ 18,002 Out-of-scope of Topic 606 Loan servicing income $ 963 $ 1,729 Securities gains/(losses), net 1,658 1,575 Unrealized gain/(loss) on equity securities, net (231) 258 Net gains on sale of loans held for sale 4,660 3,176 Valuation adjustment on servicing rights (1,565) (589) Income on bank owned life insurance 498 899 Other noninterest income 2,058 1,667 Total noninterest income out-of-scope of Topic 606 8,041 8,715 Total noninterest income $ 25,817 $ 26,717 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. Heartland's noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after Heartland satisfies its performance obligation and revenue is recognized. Heartland does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2020, and December 31, 2019, Heartland did not have any significant contract balances. Contract Acquisition Costs

STOCK COMPENSATION

STOCK COMPENSATION	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
STOCK COMPENSATION	STOCK COMPENSATIONHeartland 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 was originally approved by stockholders in May 2012 and was amended effective March 8, 2016, to increase the number of shares of common stock authorized for issuance and make certain other changes to the Plan. As of March 31, 2020, 213,863 shares of common stock were available 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. 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. Forfeitures are accounted for as they occur. Heartland's income tax expense included $25,000 of tax expense during the three months ended March 31, 2020 and a tax benefit of $336,000 during the three months ended March 31, 2019, related to the exercise, vesting and forfeiture of equity-based awards. Restricted Stock Units The Plan permits the Compensation Committee to grant restricted stock units ("RSUs"). In the first quarter of 2020, the Compensation Committee granted time-based RSUs with respect to 114,944 shares of common stock, and in the first quarter of 2019, the Compensation Committee granted time-based RSUs with respect to 90,073 shares of common stock to selected officers and employees. The time-based RSUs represent the right, without payment, to receive shares of Heartland common stock on a specified date in the future. The time-based RSUs granted in 2020 and 2019 vest over three years in equal installments on March 6 of each of the three years following the year of the grant. The time-based RSUs may also vest upon death or disability, upon a change in control or upon a "qualified retirement" (as defined in the RSU agreement). The retiree is required to sign a non-solicitation agreement as a condition to vesting. The Compensation Committee also granted three three The three twenty-four All of Heartland's RSUs will be settled in common stock upon vesting and are not entitled to dividends until vested. The Compensation Committee may grant 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 three months ended March 31, 2020, and March 31, 2019, 0 and 1,045 time-based RSUs, respectively, were granted to directors and new employees. A summary of the RSUs outstanding as of March 31, 2020, and 2019, and changes during the three months ended March 31, 2020 and 2019, follows: 2020 2019 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 254,383 $ 46.76 266,995 $ 43.89 Granted 165,731 32.57 125,966 45.77 Vested (86,441) 45.48 (117,122) 35.84 Forfeited (11,929) 48.38 (13,364) 49.89 Outstanding at March 31, 321,744 $ 40.14 262,475 $ 48.07

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
LEASES	LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Lessee Accounting Substantially all of the leases in which Heartland is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2031. All of Heartland's leases are classified as operating leases, and therefore, were previously not recognized on the consolidated balance sheet. With the adoption of ASU 2016-02 "Leases" (Topic 842), operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use ("ROU") asset and a corresponding lease liability. Heartland elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet. The table below presents Heartland's ROU assets and lease liabilities as of March 31, 2020 and December 31, 2019, in thousands: Classification March 31, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $ 21,868 $ 23,200 Operating lease liabilities Accrued expenses and other liabilities $ 23,182 $ 24,617 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. Heartland’s lease agreements often include one or more options to renew at Heartland’s discretion. If at lease inception, Heartland considers the exercising of a renewal option to be reasonably certain, Heartland will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, Heartland utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The variable lease cost primarily represents variable payments such as common area maintenance and utilities. The table below presents the lease costs and supplemental information as of March 31, 2020 and 2019, in thousands: Three Months Ended Income Statement Category 2020 2019 Lease Cost Operating lease cost Occupancy expense $ 1,382 $ 1,405 Variable lease cost Occupancy expense 16 35 Total lease cost $ 1,398 $ 1,440 Supplemental Information Noncash reduction of ROU assets arising from lease modifications and terminations Occupancy expense $ 358 $ 1,209 Noncash reduction of lease liabilities arising from lease modifications and terminations Occupancy expense 386 — Supplemental balance sheet information As of March 31, 2020 Weighted-average remaining operating lease term (in years) 6.5 Weighted-average discount rate for operating leases 3.00 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of March 31, 2020 are as follows, in thousands: Nine months ending December 31, 2020 $ 4,167 Year ending December 31, 2021 5,289 2022 4,065 2023 2,728 2024 2,015 Thereafter 7,300 Total lease payments $ 25,564 Less interest (2,382) Present value of lease liabilities $ 23,182

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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, 2019, included in the Form 10-K of Heartland Financial USA, Inc. ("Heartland") filed with the Securities and Exchange Commission ("SEC") on February 26, 2020 . Foot note disclosures to the interim unaudited consolidated financial statements which would substantially duplicate the disclosure contained in the footnotes to 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 March 31, 2020, are not necessarily indicative of the results expected for the year ending December 31, 2020.
Earnings Per Share	Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued.
Subsequent Events	Heartland has evaluated subsequent events that may require recognition or disclosure through the filing date of this Quarterly Report on Form 10-Q with the SEC.
Effect of New Financial Accounting Standards	On January 1, 2020, Heartland adopted Accounting Standards Update ("ASU") 2016-13, " Financial Instruments - Credit Losses (Topic 326),", which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. Also on January 1, 2020, Heartland adopted ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which amended certain provisions contained in ASU 2016-13, particularly by including accrued interest in the definition of amortized cost, as well as by clarifying that loan extension and renewal options in the original or modified contract that are not unconditionally cancelable by the entity should be considered in the entity's determination of expected credit losses. Also on January 1, 2020, Heartland adopted ASU 2019-11, " Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which amended certain aspects of ASU 2016-13. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, which includes loans held to maturity and held to maturity debt securities. It also applies to available for sale debt securities and off-balance sheet unfunded loan commitments. Heartland adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost basis and off-balance sheet unfunded loan commitments. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Heartland's adoption of ASU 2016-13 resulted in an increase of $12.1 million to the allowance for credit losses related to loans, which included the addition of $6.0 million of purchased credit impaired discount on previously acquired loans and a cumulative-effect adjustment to retained earnings totaling $4.6 million, net of taxes of $1.5 million. Heartland adopted ASU 2016-13 using the prospective transition approach for loans purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI") and accounted for under Accounting Standards Codification ("ASC") 310-30. In accordance with ASC 326, Heartland did not reassess whether PCI loans met the criteria of PCD loans as of the adoption date. The adoption of ASU 2016-13 resulted in an increase of $13.6 million to the allowance for unfunded commitments and a cumulative-effect adjustment to retained earnings totaling $10.2 million, net of taxes of $3.4 million. The adoption of ASU 2016-13 also established an allowance for credit losses for Heartland's held to maturity debt securities of $158,000 and a cumulative-effect adjustment to retained earnings totaling $118,000, net of taxes of $40,000. Heartland did not record an allowance for credit losses for Heartland's available for sale debt securities upon adoption of ASU 2016-13. The total result of the adoption of ASU 2016-13 was a cumulative-effect adjustment to Heartland's retained earnings of $14.9 million, net of taxes of $5.0 million. Heartland elected to not measure an allowance for credit losses on accrued interest as such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. Heartland elected to not include accrued interest within the presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the consolidated financial statements and notes contained in this Quarterly Report on Form 10-Q. The adoption of ASU 2019-04 did not have a material impact on Heartland's results of operation or financial condition. Heartland elected not to utilize the regulatory transition relief issued by federal regulatory authorities in the first quarter of 2020, which allowed banking institutions to delay the impact of CECL on regulatory capital because the impact on the capital ratios of Heartland and its subsidiary banks was not significant. Loans Held to Maturity Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, which is the principal amount outstanding, net of cumulative charge-offs, unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Heartland has a loan policy which establishes the credit risk appetite, lending standards and underwriting criteria designed so that Heartland may extend credit in a prudent and sound manner. The Heartland board of directors reviews and approves the loan policy 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. Heartland originates commercial and industrial loans and owner occupied commercial real estate loans for a wide variety of business purposes, including lines of credit for capital and operating purposes and term loans for real estate and equipment purchases. Non-owner occupied commercial real estate loans provide financing for various non-owner occupied or income producing properties. Real estate construction loans are generally short-term or interim loans that provide financing for acquiring or developing commercial income properties, multi-family projects or single-family residential homes. Agricultural and agricultural real estate loans provide financing for capital improvements and farm operations, as well as livestock and machinery purchases. Residential real estate loans are originated for the purchase or refinancing of single family residential properties. Consumer loans include loans for motor vehicles, home improvement, home equity and personal lines of credit. 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 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 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 credit losses. A loan can be restored to accrual status if the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments on the loan, and (1) all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period of time, and (2) there is a sustained period of repayment performance (generally a minimum of six months) by the borrower in accordance with the scheduled contractual terms. Allowance for Credit Losses on Loans The allowance for credit losses is a valuation account that is deducted from the loans held to maturity amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of the amounts previously charged off. Heartland's allowance model is designed to consider the current contractual term of the loan, defined as starting as of the most recent renewal date and ending at maturity date. Prepayments are implicit in the model. Management's estimation of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. Adjustments are made to historical loss experience to reflect differences in asset-specific risk characteristics, such as underwriting standards, portfolio mix or asset terms and differences in economic conditions, both current conditions and reasonable and supportable forecasts. If Heartland is not able to make or obtain reasonable and supportable forecasts for the entire life of the financial asset, it is required to estimate expected credit losses for the remaining life using an approach that reverts to historical credit loss information. The components of the allowance for credit losses are described more specifically below. Quantitative Factors The quantitative component of the allowance for credit losses is measured using historical loss experience using a look-back period, currently over the most recent 12 years, on a pool basis for loans with similar risk characteristics. Heartland utilizes third-party software to calculate the expected credit losses. The risks in the commercial and industrial loan portfolio include the unpredictability of the cash flow of the borrowers and the variability in the value of the collateral securing the loans. Owner occupied commercial real estate loans are dependent upon the cash flow of the borrowers and the collateral value of the real estate. Non-owner occupied commercial real estate loans are typically dependent, in large part, on sufficient income from the properties securing the loans to cover the operating expenses and debt service. Real estate construction loans involve additional risks because funds are advanced based upon estimates of costs and the estimated value of the completed project. Additionally, real estate construction loans have a greater risk of default in a weaker economy because the source of repayment is reliant on the successful and timely sale of the project. Agricultural and agricultural real estate loans are dependent upon the profitable operation or management of the farm property securing the loan. Loans secured by farm equipment, livestock or crops may not provide an adequate source of repayment because of damage or depreciation. Residential real estate loans are dependent upon the borrower's ability to repay the loan and the underlying collateral value. Consumer loans are dependent upon the borrower's personal financial circumstances and continued financial stability. If a loan no longer shares similar risk characteristics with other loans in the pool and does not share similar risk characteristics with another pool, it is evaluated on an individual basis and is not included in the collective evaluation. Heartland will individually assess loans that are collateral dependent. A loan is collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For those loans that are deemed collateral dependent and in foreclosure the impairment will be recognized by creating a specific reserve against the loan with a corresponding charge to provision expense. In most cases, the specific reserve will be charged off in the same quarter as the loss is probable. Individually assessed loans will be considered non-accrual since it is probable that the collection of all principal and interest will not occur. In some cases when foreclosure is not probable, but Heartland believes certain loans do not share the same risk characteristics with the like loans in the pool, the standard allows for these loans to be individually assessed. All individually assessed calculations are completed at least annually. Qualitative Factors Heartland's allowance methodology also has a qualitative component, the purpose of which is to provide management with a means to take into consideration changes in current conditions that could potentially have an effect, up or down, on the level of recognized loan losses, that, for whatever reason, fail to show up in the quantitative analysis performed in determining its base loan loss rates. Heartland utilizes the following qualitative factors: • changes in lending policies and procedures • changes in the nature and volume of loans • experience and ability of management • changes in the credit quality of the loan portfolio • quality of institution’s loan review system • concentrations of credit • other external factors The qualitative adjustments are based on the comparison of the current condition to the average condition over the look back period. The adjustment amount can be either positive or negative depending whether or not the current condition is better or worse than the historical average. Heartland incorporates the adjustments for changes in current conditions using an overlay method. The adjustments are applied as a percentage adjustment in addition to the calculated historical loss rates of each pool. These adjustments reflect the extent to which Heartland expects current conditions to differ from the conditions that existed for the period over which historical information was evaluated. Heartland utilizes anchoring to determine the minimum and maximum amount of qualitative allowance for credit losses, which is determined by comparing the highest and lowest historical rate to the average loss rate to calculate the rate for the adjustment. Economic Forecasting Heartland utilizes an overlay method for its economic forecasting component, similar to the method utilized for the qualitative factors. The length of the reasonable and supportable forecast period is a judgmental determination based on the level to which the entity can support its forecast of economic conditions that drive its estimate of expected loss. Heartland compares forecasted economic indices, such as unemployment and gross domestic product, to the economic conditions that existed over Heartland's look-back period. It is expected that actual economic conditions will, in many circumstances, turn out differently than forecasted because the ultimate outcomes during the forecast period may be affected by events that were unforeseen, such as economic disruption and fiscal or monetary policy actions, which are exacerbated by longer forecasting periods. This uncertainty would be relevant to the entity’s confidence level as to the outcomes being forecasted. That is, an entity is likely less confident in the ultimate outcome of events that will occur at the end of the forecast period as compared to the beginning. As a result, actual future economic conditions may not be an effective indicator of the quality of management’s forecasting process, including the length of the forecast period. Heartland has access to various third-party economic forecast scenarios provided by Moody's, which are updated quarterly in Heartland's methodology. Because Heartland is applying the economic forecast adjustment qualitatively, the concept of "reversion to the historical mean" does not apply. For Heartland's January 1, 2020 calculation, a two-year reasonable and supportable forecast period was used. Because of the economic uncertainty associated with COVID-19, Heartland utilized a one-year reasonable and supportable forecast period for the calculation of the March 31, 2020, allowance for credit losses. Allowance for Credit Losses on Unfunded Loan Commitments Heartland estimates expected credit losses over the contractual term of the loan for the unfunded portion of the loan commitment that is not unconditionally cancellable by Heartland. Management uses an estimated average utilization rate to determine the exposure at default. The allowance for unfunded commitments is recorded in the Accrued Expenses and Other Liabilities section of the consolidated balance sheets. Allowance for Credit Losses on Held to Maturity Debt Securities Heartland measures expected credit losses on held to maturity debt securities on a collective basis based on security type. The estimate of expected credit losses considers historical credit information that is adjusted for current conditions and supportable forecasts. Heartland's held to maturity debt securities consist primarily of investment grade obligations of states and political subdivisions. The forecast and forecast period used in the calculation of allowance for credit losses on loans is used in calculating the allowance for credit losses on held to maturity debt securities, and Heartland utilizes a third-party to calculate the expected credit losses. Allowance for Credit Losses on Available for Sale ("AFS") Debt Securities ASU 2016-13 modifies the impairment model for AFS debt securities. AFS debt securities in unrealized loss positions are evaluated for credit related loss at least quarterly. The decline in fair value of an AFS debt security due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income, net of applicable taxes. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally considered to not be related to credit when the fair value of the security is below the carrying value primarily due to changes in risk-free interest rates, there has not been significant deterioration in the financial condition of the issuer, and Heartland does not intend to sell nor does it believe it will be required to sell the security before the recovery of its cost basis. Heartland did not record an allowance for credit losses on AFS debt securities upon adoption of ASU 2016-13 or at March 31, 2020. ASU 2017-04 In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350)." The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Instead, an entity performs only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing the impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. An entity has the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. This ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and is applied prospectively. Early adoption was permitted, including in an interim period for impairment tests performed after January 1, 2017. Heartland adopted ASU 2017-04 in the first quarter of 2020, and the adoption did not have a material impact on its results of operations, financial position and liquidity. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, " Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption was permitted. Heartland adopted this ASU on January 1, 2020, as required, and because ASU 2018-13 only revised disclosure requirements, the adoption of this ASU did not have a material impact on its results of operations, financial position and liquidity. ASU 2018-16 In October 2018, the FASB issued ASU 2018-16, " Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting." In the United States, eligible benchmark interest rates under Topic 815 are interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate ("LIBOR") swap rate, and the Overnight Index Swap ("OIS") Rate based on the Fed Funds Effective Rate. When the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , in August 2017, it introduced the Securities Industry and Financial Markets Association ("SIFMA") Municipal Swap Rate as the fourth permissible U.S. benchmark rate. ASU 2018-16 adds the OIS rate based on the Secured Overnight Financing Rate ("SOFR") as a U.S. benchmark interest rate to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. ASU 2018-16 became effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and the financial statement impact immediately upon adoption was immaterial. The future financial statement impact will depend on any new contracts entered into using new benchmark rates, as well as any existing contracts that are migrated from LIBOR to new benchmark interest rates. Heartland is currently evaluating the impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including but not limited to the SOFR. Currently, Heartland has adjustable rate loans, several debt obligations and derivative instruments in place that reference LIBOR-based rates. The transition from LIBOR is expected to take place at the end of 2021, and management will continue to actively assess the related opportunities and risks involved in this transition. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Heartland intends to adopt this ASU on January 1, 2021, as required, and the adoption is not expected to have a material impact on its results of operations, financial position and liquidity. ASU 2020-02 In February 2020, the FASB issued ASU 2020-02, "Financial Instruments - Credit losses (Topic 326) and Leases (Topic 842)," which incorporates SEC Staff Accounting Bulletin ("SAB") 119 (updated from SAB 102) into the ASC by aligning SEC recommended policies and procedures with ASC 326. ASU 2020-02 was effective immediately for Heartland and had no significant impact on its results of operations, financial position and liquidity. ASU 2020-03 In March 2020, the FASB issued ASU 2020-03, " Codification Improvements to Financial Instruments," which revised a wide variety of topics in the ASC with the intent to make the ASC easier to understand and apply by eliminating inconsistencies and providing clarifications. ASU 2020-03 was effective immediately upon its release, and the adoption did not have a material impact on Heartland's results of operations, financial position and liquidity. ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform, " which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For loan and lease agreements that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate, and the modifications would be considered "minor" with the result that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement, with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the ASC, ASU 2020-04 must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Heartland anticipates that ASU 2020-04 will simplify any modifications executed between the selected start date and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract that would result in writing off unamortized fees/costs. Management will continue to actively assess the impacts of ASU 2020-04 and the related opportunities and risks involved in the LIBOR transition.
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 and asset-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. On a quarterly basis, a secondary independent pricing service is used for the securities portfolio to validate the pricing from Heartland's primary pricing service. Equity Securities with a Readily Determinable Fair Value Equity securities with a readily determinable fair value generally include Community Reinvestment Act mutual funds and are classified as Level 2 due to the infrequent trading of these securities. The fair value is based on the price per share. 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, certain loans are considered collateral dependent and an allowance for credit losses is established. The fair value of individually assessed loans is measured using the fair value of the collateral. In accordance with ASC 820, individually assessed 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. 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 the assumptions in the discounted cash flow analysis 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 guaranteed by the Small Business Administration and the United States Department of Agriculture that have been sold with servicing retained by Heartland. 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 March 31, 2020, and December 31, 2019, 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.
Revenue Recognition	Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. Heartland's noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after Heartland satisfies its performance obligation and revenue is recognized. Heartland does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2020, and December 31, 2019, Heartland did not have any significant contract balances. Contract Acquisition Costs

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Amounts used in the determination of basic and diluted earnings per share for the three-month periods ended March 31, 2020, and 2019, are shown in the table below: Three Months Ended (Dollars and number of shares in thousands, except per share data) 2020 2019 Net income available to stockholders $ 20,040 $ 31,497 Weighted average common shares outstanding for basic earnings per share 36,821 34,564 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 75 136 Weighted average common shares for diluted earnings per share 36,896 34,700 Earnings per common share — basic $ 0.54 $ 0.91 Earnings per common share — diluted $ 0.54 $ 0.91 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 2

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
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 debt securities available for sale and equity securities with a readily determinable fair value that are carried at fair value as of March 31, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated March 31, 2020 U.S. government corporations and agencies $ 9,796 $ 120 $ — $ 9,916 Mortgage and asset-backed securities 2,574,131 25,835 (79,962) 2,520,004 Obligations of states and political subdivisions 915,045 29,927 (4,531) 940,441 Total debt securities 3,498,972 55,882 (84,493) 3,470,361 Equity securities with a readily determinable fair value 18,260 — — 18,260 Total $ 3,517,232 $ 55,882 $ (84,493) $ 3,488,621 December 31, 2019 U.S. government corporations and agencies $ 9,844 $ 49 $ — $ 9,893 Mortgage and asset-backed securities 2,579,081 17,200 (19,003) 2,577,278 Obligations of states and political subdivisions 704,073 12,516 (9,399) 707,190 Total debt securities 3,292,998 29,765 (28,402) 3,294,361 Equity securities with a readily determinable fair value 18,435 — — 18,435 Total $ 3,311,433 $ 29,765 $ (28,402) $ 3,312,796
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 March 31, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses March 31, 2020 Obligations of states and political subdivisions $ 92,072 $ 9,303 $ — $ 101,375 $ (197) Total $ 92,072 $ 9,303 $ — $ 101,375 $ (197) December 31, 2019 Obligations of states and political subdivisions $ 91,324 $ 9,160 $ — $ 100,484 $ — Total $ 91,324 $ 9,160 $ — $ 100,484 $ —
Investments Classified by Contractual Maturity Date	The amortized cost and estimated fair value of investment securities carried at fair value at March 31, 2020, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. March 31, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 13,010 $ 13,115 Due in 1 to 5 years 28,459 28,965 Due in 5 to 10 years 77,800 80,445 Due after 10 years 805,572 827,832 Total debt securities 924,841 950,357 Mortgage and asset-backed securities 2,574,131 2,520,004 Equity securities with a readily determinable fair value 18,260 18,260 Total investment securities $ 3,517,232 $ 3,488,621 The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2020, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. March 31, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 3,357 $ 3,398 Due in 1 to 5 years 16,681 17,158 Due in 5 to 10 years 60,368 65,394 Due after 10 years 11,666 15,425 Total debt securities 92,072 101,375 Allowance for credit losses (197) — Total investment securities $ 91,875 $ 101,375
Schedule of Realized Gross Gains (Losses)	Gross gains and losses realized related to the sales of securities carried at fair value for the three-month periods ended March 31, 2020 and 2019, are summarized as follows, in thousands: Three Months Ended 2020 2019 Proceeds from sales $ 328,890 $ 434,154 Gross security gains 2,904 2,408 Gross security losses 1,246 833
Schedule of Debt Securities Available-for-sale	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 March 31, 2020, and December 31, 2019. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. The reference point for determining how long an investment was in an unrealized loss position w as March 31, 2019, and December 31, 2018, respectively. Debt securities available for sale Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count March 31, 2020 U.S. government corporations and agencies $ — $ — — $ — $ — — $ — $ — — Mortgage and asset-backed securities 1,255,628 (65,624) 129 168,360 (14,338) 44 1,423,988 (79,962) 173 Obligations of states and political subdivisions 202,240 (4,531) 29 — — — 202,240 (4,531) 29 Total temporarily impaired securities $ 1,457,868 $ (70,155) 158 $ 168,360 $ (14,338) 44 $ 1,626,228 $ (84,493) 202 December 31, 2019 U.S. government corporations and agencies $ — $ — — $ — $ — — $ — $ — — Mortgage and asset-backed securities 1,231,732 (14,189) 150 241,232 (4,814) 58 1,472,964 (19,003) 208 Obligations of states and political subdivisions 387,534 (9,399) 50 — — — 387,534 (9,399) 50 Total temporarily impaired securities $ 1,619,266 $ (23,588) 200 $ 241,232 $ (4,814) 58 $ 1,860,498 $ (28,402) 258
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	Securities held to maturity Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count March 31, 2020 Obligations of states and political subdivisions $ — $ — — $ — $ — — $ — $ — — Total temporarily impaired securities $ — $ — — $ — $ — — $ — $ — — December 31, 2019 Obligations of states and political subdivisions $ — $ — — $ — $ — — $ — $ — — Total temporarily impaired securities $ — $ — — $ — $ — — $ — $ — —
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss	The following table presents, in thousands, the activity in the allowance for credit losses for securities held to maturity by major security type for the quarter ended March 31, 2020: Obligations of states and political subdivisions Balance at December 31, 2019 $ — Impact of ASU 2016-13 adoption 158 Provision for credit losses 39 Balance at March 31, 2020 $ 197
Schedule of Financing Receivable Credit Quality Indicators	The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of March 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ 3,060 AA, AA+, AA- 22,929 A+, A, A- 11,266 BBB 6,044 Not Rated 48,773 Total $ 92,072 The following table shows the risk category of loans by loan category and year of origination as of March 31, 2020, in thousands: Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 115,467 $ 449,215 $ 248,480 $ 295,304 $ 138,032 $ 395,428 $ 746,177 $ 2,388,103 Watch 5,931 10,902 8,927 11,106 8,438 745 33,670 79,719 Substandard 89 12,855 13,769 16,599 13,411 11,242 14,703 82,668 Commercial and industrial total $ 121,487 $ 472,972 $ 271,176 $ 323,009 $ 159,881 $ 407,415 $ 794,550 $ 2,550,490 Owner occupied commercial real estate Pass $ 75,869 $ 316,692 $ 296,556 $ 192,402 $ 134,910 $ 272,086 $ 40,197 $ 1,328,712 Watch 284 4,426 3,278 24,877 5,323 5,451 60 43,699 Substandard 1,322 11,678 18,301 6,093 4,044 13,828 3,361 58,627 Owner occupied commercial real estate total $ 77,475 $ 332,796 $ 318,135 $ 223,372 $ 144,277 $ 291,365 $ 43,618 $ 1,431,038 Non-owner occupied commercial real estate Pass $ 98,574 $ 413,112 $ 280,142 $ 205,981 $ 130,152 $ 328,567 $ 30,433 $ 1,486,961 Watch 260 2,102 8,873 4,864 3,630 7,290 — 27,019 Substandard 19,435 3,345 1,621 3,831 847 8,728 — 37,807 Non-owner occupied commercial real estate total $ 118,269 $ 418,559 $ 290,636 $ 214,676 $ 134,629 $ 344,585 $ 30,433 $ 1,551,787 Real estate construction Pass $ 52,053 $ 427,330 $ 338,112 $ 113,541 $ 38,848 $ 38,446 $ 13,395 $ 1,021,725 Watch — 9,237 10,215 393 15,040 1,223 824 36,932 Substandard 5,762 1,995 921 1,496 175 694 — 11,043 Real estate construction total $ 57,815 $ 438,562 $ 349,248 $ 115,430 $ 54,063 $ 40,363 $ 14,219 $ 1,069,700 Agricultural and agricultural real estate Pass $ 32,744 $ 109,410 $ 60,433 $ 44,231 $ 21,196 $ 47,884 $ 126,461 $ 442,359 Watch 770 9,672 7,048 1,376 2,451 5,702 10,788 37,807 Substandard 3,399 8,789 21,158 6,509 5,282 15,112 9,692 69,941 Agricultural and agricultural real estate total $ 36,913 $ 127,871 $ 88,639 $ 52,116 $ 28,929 $ 68,698 $ 146,941 $ 550,107 Residential real estate Pass $ 21,366 $ 89,884 $ 136,425 $ 106,682 $ 65,243 $ 299,054 $ 37,805 $ 756,459 Watch — 3,111 885 1,848 357 7,295 — 13,496 Substandard — 313 1,102 398 1,791 17,878 1,103 22,585 Residential real estate total $ 21,366 $ 93,308 $ 138,412 $ 108,928 $ 67,391 $ 324,227 $ 38,908 $ 792,540 Consumer Pass $ 8,972 $ 37,316 $ 25,875 $ 16,919 $ 5,593 $ 25,825 $ 295,687 $ 416,187 Watch — 339 451 198 216 865 1,946 4,015 Substandard 249 646 2,582 786 990 2,472 647 8,372 Consumer Total $ 9,221 $ 38,301 $ 28,908 $ 17,903 $ 6,799 $ 29,162 $ 298,280 $ 428,574 Total Pass $ 405,045 $ 1,842,959 $ 1,386,023 $ 975,060 $ 533,974 $ 1,407,290 $ 1,290,155 $ 7,840,506 Total Watch 7,245 39,789 39,677 44,662 35,455 28,571 47,288 242,687 Total Substandard 30,256 39,621 59,454 35,712 26,540 69,954 29,506 291,043 Total Loans $ 442,546 $ 1,922,369 $ 1,485,154 $ 1,055,434 $ 595,969 $ 1,505,815 $ 1,366,949 $ 8,374,236 The following table shows Heartland's loan portfolio by credit quality indicator as of December 31, 2019, in thousands: Pass Nonpass Total Commercial and industrial $ 2,352,131 $ 178,678 $ 2,530,809 Owner occupied commercial real estate 1,369,290 103,414 1,472,704 Non-owner occupied commercial real estate 1,429,760 66,117 1,495,877 Real estate construction 984,736 42,345 1,027,081 Agricultural and agricultural real estate 454,272 111,565 565,837 Residential real estate 790,226 42,051 832,277 Consumer 430,733 12,599 443,332 Total loans receivable held to maturity $ 7,811,148 $ 556,769 $ 8,367,917

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Schedule of Loans	Loans as of March 31, 2020, and December 31, 2019, were as follows, in thousands: March 31, 2020 December 31, 2019 Loans receivable held to maturity: Commercial and industrial $ 2,550,490 $ 2,530,809 Owner occupied commercial real estate 1,431,038 1,472,704 Non-owner occupied commercial real estate 1,551,787 1,495,877 Real estate construction 1,069,700 1,027,081 Agricultural and agricultural real estate 550,107 565,837 Residential real estate 792,540 832,277 Consumer 428,574 443,332 Total loans receivable held to maturity 8,374,236 8,367,917 Allowance for credit losses (97,350) (70,395) Loans receivable, net $ 8,276,886 $ 8,297,522
Allowance for Loan and Lease Losses, Based on Impairment Methodology	The following table shows the balance in the allowance for credit losses at March 31, 2020, and December 31, 2019, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. As of March 31, 2020, loans individually assessed are collateral dependent and in the process of foreclosure or no longer share the same risk characteristics of the other loans in the pool. All other loans are collectively evaluated for losses. Loans individually evaluated were considered impaired at December 31, 2019. Allowance For Credit Losses Gross Loans Receivable Held to Maturity Individually Evaluated for Credit Losses Collectively Evaluated for Credit Losses Total Loans Individually Evaluated for Credit Losses Loans Collectively Evaluated for Credit Losses Total March 31, 2020 Commercial and industrial $ 3,695 $ 28,768 $ 32,463 $ 19,449 $ 2,531,041 $ 2,550,490 Owner occupied commercial real estate 1,054 9,282 10,336 6,943 1,424,095 1,431,038 Non-owner occupied commercial real estate 29 8,292 8,321 1,402 1,550,385 1,551,787 Real estate construction 51 22,900 22,951 200 1,069,500 1,069,700 Agricultural and agricultural real estate 986 3,811 4,797 17,450 532,657 550,107 Residential real estate 413 8,312 8,725 2,910 789,630 792,540 Consumer 114 9,643 9,757 485 428,089 428,574 Total $ 6,342 $ 91,008 $ 97,350 $ 48,839 $ 8,325,397 $ 8,374,236 December 31, 2019 Commercial and industrial $ 6,276 $ 24,511 $ 30,787 $ 31,814 $ 2,498,995 $ 2,530,809 Owner occupied commercial real estate 351 7,863 8,214 9,468 1,463,236 1,472,704 Non-owner occupied commercial real estate 33 7,769 7,802 1,730 1,494,147 1,495,877 Real estate construction — 11,599 11,599 685 1,026,396 1,027,081 Agricultural and agricultural real estate 916 4,757 5,673 18,554 547,283 565,837 Residential real estate 176 1,328 1,504 20,678 811,599 832,277 Consumer 419 4,397 4,816 4,123 439,209 443,332 Total $ 8,171 $ 62,224 $ 70,395 $ 87,052 $ 8,280,865 $ 8,367,917
Schedule of Financing Receivables, Non Accrual Status	The following tables present the amortized cost basis for loans on nonaccrual status and accruing loans past due 90 days or more at March 31, 2020, in thousands: Nonaccrual Nonaccrual Loans Total Accruing Loans March 31, 2020 Commercial and industrial $ 15,541 $ 11,466 $ 27,007 $ — Owner occupied commercial real estate 5,675 3,761 9,436 — Non-owner occupied commercial real estate 364 1,264 1,628 — Real estate construction 1,062 17 1,079 — Agricultural and agricultural real estate 7,225 14,485 21,710 — Residential mortgage 11,541 2,061 13,602 — Consumer 4,599 219 4,818 — Total $ 46,007 $ 33,273 $ 79,280 $ — Heartland recognized $0 of interest income on nonaccrual loans during the three months ended March 31, 2020.
Troubled Debt Restructuring on Loans Modified	The following tables provide information on troubled debt restructured loans that were modified during the three-month periods ended March 31, 2020, and March 31, 2019, dollars in thousands: Three Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial and industrial — $ — $ — — $ — $ — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate — — — — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate 1 32 32 1 36 42 Consumer — — — — — — Total 1 $ 32 $ 32 1 $ 36 $ 42
Troubled Debt Restructuring on Loans With Payment Defaults	The following table shows troubled debt restructured loans for which there was a payment default during the three-month periods ended March 31, 2020, and March 31, 2019, that had been modified during the twelve-month period prior to default, in thousands: With Payment Defaults During the 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate 1 241 1 42 Consumer — — — — Total 1 $ 241 1 $ 42
Schedule of Financing Receivable Credit Quality Indicators	The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of March 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ 3,060 AA, AA+, AA- 22,929 A+, A, A- 11,266 BBB 6,044 Not Rated 48,773 Total $ 92,072 The following table shows the risk category of loans by loan category and year of origination as of March 31, 2020, in thousands: Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 115,467 $ 449,215 $ 248,480 $ 295,304 $ 138,032 $ 395,428 $ 746,177 $ 2,388,103 Watch 5,931 10,902 8,927 11,106 8,438 745 33,670 79,719 Substandard 89 12,855 13,769 16,599 13,411 11,242 14,703 82,668 Commercial and industrial total $ 121,487 $ 472,972 $ 271,176 $ 323,009 $ 159,881 $ 407,415 $ 794,550 $ 2,550,490 Owner occupied commercial real estate Pass $ 75,869 $ 316,692 $ 296,556 $ 192,402 $ 134,910 $ 272,086 $ 40,197 $ 1,328,712 Watch 284 4,426 3,278 24,877 5,323 5,451 60 43,699 Substandard 1,322 11,678 18,301 6,093 4,044 13,828 3,361 58,627 Owner occupied commercial real estate total $ 77,475 $ 332,796 $ 318,135 $ 223,372 $ 144,277 $ 291,365 $ 43,618 $ 1,431,038 Non-owner occupied commercial real estate Pass $ 98,574 $ 413,112 $ 280,142 $ 205,981 $ 130,152 $ 328,567 $ 30,433 $ 1,486,961 Watch 260 2,102 8,873 4,864 3,630 7,290 — 27,019 Substandard 19,435 3,345 1,621 3,831 847 8,728 — 37,807 Non-owner occupied commercial real estate total $ 118,269 $ 418,559 $ 290,636 $ 214,676 $ 134,629 $ 344,585 $ 30,433 $ 1,551,787 Real estate construction Pass $ 52,053 $ 427,330 $ 338,112 $ 113,541 $ 38,848 $ 38,446 $ 13,395 $ 1,021,725 Watch — 9,237 10,215 393 15,040 1,223 824 36,932 Substandard 5,762 1,995 921 1,496 175 694 — 11,043 Real estate construction total $ 57,815 $ 438,562 $ 349,248 $ 115,430 $ 54,063 $ 40,363 $ 14,219 $ 1,069,700 Agricultural and agricultural real estate Pass $ 32,744 $ 109,410 $ 60,433 $ 44,231 $ 21,196 $ 47,884 $ 126,461 $ 442,359 Watch 770 9,672 7,048 1,376 2,451 5,702 10,788 37,807 Substandard 3,399 8,789 21,158 6,509 5,282 15,112 9,692 69,941 Agricultural and agricultural real estate total $ 36,913 $ 127,871 $ 88,639 $ 52,116 $ 28,929 $ 68,698 $ 146,941 $ 550,107 Residential real estate Pass $ 21,366 $ 89,884 $ 136,425 $ 106,682 $ 65,243 $ 299,054 $ 37,805 $ 756,459 Watch — 3,111 885 1,848 357 7,295 — 13,496 Substandard — 313 1,102 398 1,791 17,878 1,103 22,585 Residential real estate total $ 21,366 $ 93,308 $ 138,412 $ 108,928 $ 67,391 $ 324,227 $ 38,908 $ 792,540 Consumer Pass $ 8,972 $ 37,316 $ 25,875 $ 16,919 $ 5,593 $ 25,825 $ 295,687 $ 416,187 Watch — 339 451 198 216 865 1,946 4,015 Substandard 249 646 2,582 786 990 2,472 647 8,372 Consumer Total $ 9,221 $ 38,301 $ 28,908 $ 17,903 $ 6,799 $ 29,162 $ 298,280 $ 428,574 Total Pass $ 405,045 $ 1,842,959 $ 1,386,023 $ 975,060 $ 533,974 $ 1,407,290 $ 1,290,155 $ 7,840,506 Total Watch 7,245 39,789 39,677 44,662 35,455 28,571 47,288 242,687 Total Substandard 30,256 39,621 59,454 35,712 26,540 69,954 29,506 291,043 Total Loans $ 442,546 $ 1,922,369 $ 1,485,154 $ 1,055,434 $ 595,969 $ 1,505,815 $ 1,366,949 $ 8,374,236 The following table shows Heartland's loan portfolio by credit quality indicator as of December 31, 2019, in thousands: Pass Nonpass Total Commercial and industrial $ 2,352,131 $ 178,678 $ 2,530,809 Owner occupied commercial real estate 1,369,290 103,414 1,472,704 Non-owner occupied commercial real estate 1,429,760 66,117 1,495,877 Real estate construction 984,736 42,345 1,027,081 Agricultural and agricultural real estate 454,272 111,565 565,837 Residential real estate 790,226 42,051 832,277 Consumer 430,733 12,599 443,332 Total loans receivable held to maturity $ 7,811,148 $ 556,769 $ 8,367,917
Past Due Financing Receivables	The following table sets forth information regarding Heartland's accruing and nonaccrual loans at March 31, 2020, and December 31, 2019, in thousands: Accruing Loans 30-59 Days 60-89 Days 90 Days or Total Current Nonaccrual Total Loans March 31, 2020 Commercial and industrial $ 5,346 $ 500 $ — $ 5,846 $ 2,517,637 $ 27,007 $ 2,550,490 Owner occupied commercial real estate 1,462 1,028 — 2,490 1,419,112 9,436 1,431,038 Non-owner occupied commercial real estate 2,736 7,154 — 9,890 1,540,269 1,628 1,551,787 Real estate construction 1,940 587 — 2,527 1,066,094 1,079 1,069,700 Agricultural and agricultural real estate 2,789 280 — 3,069 525,328 21,710 550,107 Residential real estate 5,637 147 — 5,784 773,154 13,602 792,540 Consumer 1,783 259 — 2,042 421,714 4,818 428,574 Total gross loans receivable held to maturity $ 21,693 $ 9,955 $ — $ 31,648 $ 8,263,308 $ 79,280 $ 8,374,236 December 31, 2019 Commercial and industrial $ 5,121 $ 904 $ 3,899 $ 9,924 $ 2,491,110 $ 29,775 $ 2,530,809 Owner occupied commercial real estate 3,487 690 — 4,177 1,461,589 6,938 1,472,704 Non-owner occupied commercial real estate 614 81 — 695 1,493,619 1,563 1,495,877 Real estate construction 5,689 72 — 5,761 1,020,153 1,167 1,027,081 Agricultural and agricultural real estate 3,734 79 26 3,839 541,455 20,543 565,837 Residential real estate 4,166 24 180 4,370 814,840 13,067 832,277 Consumer 2,511 651 — 3,162 436,675 3,495 443,332 Total gross loans receivable held to maturity $ 25,322 $ 2,501 $ 4,105 $ 31,928 $ 8,259,441 $ 76,548 $ 8,367,917
Summary of Impaired Loans	The following table presents the unpaid principal balance that was contractually due at December 31, 2019, the outstanding loan balance recorded on the consolidated balance sheets at December 31, 2019, any related allowance recorded for those loans as of December 31, 2019, the average outstanding loan balances recorded on the consolidated balance sheets during the year ended December 31, 2019, and the interest income recognized on the impaired loans during the year ended December 31, 2019, in thousands: Unpaid Loan Related Year-to- Year-to- December 31, 2019 Impaired loans with a related allowance: Commercial $ 11,727 $ 11,710 $ 6,276 $ 11,757 $ 6 Owner occupied commercial real estate 712 712 352 1,435 22 Non-owner occupied commercial real estate 138 138 33 — — Real estate construction 17 17 — — — Agricultural and agricultural real estate 2,751 2,237 916 2,739 — Residential real estate 1,378 1,378 176 1,116 — Consumer 998 997 419 1,170 11 Total loans held to maturity $ 17,721 $ 17,189 $ 8,172 $ 18,217 $ 39 Impaired loans without a related allowance: Commercial $ 22,525 $ 20,104 $ — $ 19,141 $ 782 Owner occupied commercial real estate 8,756 8,756 — 8,337 341 Non-owner occupied commercial real estate 1,592 1,592 — 1,515 62 Real estate construction 668 668 — 636 26 Agricultural and agricultural real estate 19,113 16,317 — 16,837 60 Residential real estate 19,382 19,300 — 17,073 280 Consumer 3,135 3,126 — 4,182 45 Total loans held to maturity $ 75,171 $ 69,863 $ — $ 67,721 $ 1,596 Total impaired loans held to maturity: Commercial $ 34,252 $ 31,814 $ 6,276 $ 30,898 $ 788 Owner occupied commercial real estate 9,468 9,468 352 9,772 363 Non-owner occupied commercial real estate 1,730 1,730 33 1,515 62 Real estate construction 685 685 — 636 26 Agricultural and agricultural real estate 21,864 18,554 916 19,576 60 Residential real estate 20,760 20,678 176 18,189 280 Consumer 4,133 4,123 419 5,352 56 Total impaired loans held to maturity $ 92,892 $ 87,052 $ 8,172 $ 85,938 $ 1,635

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	3 Months Ended
	Mar. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]
Changes in the Allowance for Loan and Leases Losses	Changes in the allowance for credit losses on loans for the three month periods ended March 31, 2020, and March 31, 2019, were as follows, in thousands: Commercial and Industrial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential Mortgage Consumer Total Balance at December 31, 2019 $ 30,787 $ 8,214 $ 7,802 $ 11,599 $ 5,673 $ 1,504 $ 4,816 $ 70,395 Impact of ASU 2016-13 adoption 3,147 (407) (2,834) 3,413 (380) 4,817 4,315 12,071 Charge-offs (5,596) — (21) (253) (79) (352) (6,301) Recoveries 352 1 — 5 826 3 133 1,320 Provision 3,773 2,528 3,353 7,955 (1,069) 2,480 845 19,865 Balance at March 31, 2020 $ 32,463 $ 10,336 $ 8,321 $ 22,951 $ 4,797 $ 8,725 $ 9,757 $ 97,350 Commercial and Industrial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential Mortgage Consumer Total Balance at December 31, 2018 $ 26,306 $ 6,525 $ 7,430 $ 9,679 $ 4,914 $ 1,813 $ 5,296 $ 61,963 Charge-offs (980) (23) — (54) (379) (140) (374) (1,950) Recoveries 308 89 40 4 328 52 170 991 Provision 1,616 (261) (344) 365 655 (102) (294) 1,635 Balance at March 31, 2019 $ 27,250 $ 6,330 $ 7,126 $ 9,994 $ 5,518 $ 1,623 $ 4,798 $ 62,639
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Changes in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2020, were as follows: Balance at December 31, 2019 $ 248 Impact of ASU 2016-13 adoption 13,604 Provision 1,616 Balance at March 31, 2020 $ 15,468

GOODWILL, CORE DEPOSIT PREMIU_2

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Schedule of Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets	The gross carrying amount of these intangible assets and the associated accumulated amortization at March 31, 2020, and December 31, 2019, are presented in the table below, in thousands: March 31, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 96,821 $ 51,309 $ 45,512 $ 96,821 $ 48,338 $ 48,483 Customer relationship intangibles 1,177 982 195 1,177 972 205 Mortgage servicing rights 8,262 4,137 4,125 7,886 2,265 5,621 Commercial servicing rights 6,990 5,895 1,095 6,952 5,837 1,115 Total $ 113,250 $ 62,323 $ 50,927 $ 112,836 $ 57,412 $ 55,424
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 Customer Mortgage Commercial Nine months ending December 31, 2020 $ 7,606 $ 27 $ 920 $ 223 $ 8,776 Year ending December 31, 2021 8,691 35 801 268 9,795 2022 7,102 34 687 239 8,062 2023 6,201 34 572 161 6,968 2024 5,108 33 458 94 5,693 2025 4,265 32 344 110 4,751 Thereafter 6,539 — 343 — 6,882 Total $ 45,512 $ 195 $ 4,125 $ 1,095 $ 50,927
Schedule of Servicing Asset at Fair Value and Amortized Cost	The following table summarizes, in thousands, the book value, the fair value of each tranche of the mortgage servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2020, and December 31, 2019: March 31, 2020 Book Value 15-Year Tranche Fair Value 15-Year Tranche Impairment 15-Year Tranche Book Value 30-Year Tranche Fair Value 30-Year Tranche Impairment 30-Year Tranche First Bank & Trust 1,478 954 524 5,181 3,171 2,010 Total $ 1,478 $ 954 $ 524 $ 5,181 $ 3,171 $ 2,010 December 31, 2019 First Bank & Trust 1,482 1,368 114 5,050 4,253 797 Total $ 1,482 $ 1,368 $ 114 $ 5,050 $ 4,253 $ 797 The following table summarizes, in thousands, the book value, the fair value of each tranche of the commercial servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2020, and December 31, 2019: March 31, 2020 Book Value Fair Value Impairment Book Value Fair Value Impairment Premier Valley Bank 1 12 — 125 145 — Wisconsin Bank & Trust 132 237 — 837 1,013 — Total $ 133 $ 249 $ — $ 962 $ 1,158 $ — December 31, 2019 Premier Valley Bank 1 13 — 135 161 — Wisconsin Bank & Trust 128 272 — 851 1,148 — Total $ 129 $ 285 $ — $ 986 $ 1,309 $ —
Mortgage servicing rights
Finite-Lived Intangible Assets [Line Items]
Summary of Changes in Servicing Rights	The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the three months ended March 31, 2020, and March 31, 2019: 2020 2019 Balance at January 1, $ 5,621 $ 29,363 Originations 376 198 Amortization (307) (1,500) Valuation allowance (1,565) (589) Balance at period end $ 4,125 $ 27,472 Mortgage servicing rights, net to servicing portfolio 0.67 % 0.68 %
Commercial servicing rights
Finite-Lived Intangible Assets [Line Items]
Summary of Changes in Servicing Rights	The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the three-months ended March 31, 2020, and March 31, 2019: 2020 2019 Balance at January 1, $ 1,115 $ 1,709 Originations 38 68 Amortization (58) (281) Balance at period end $ 1,095 $ 1,496 Fair value of commercial servicing rights $ 1,407 $ 1,926 Commercial servicing rights, net to servicing portfolio 1.41 % 1.58 %

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance Sheet Category and Fair Values of Embedded Derivatives	The table below identifies the notional amount, fair value and balance sheet category of Heartland's embedded derivatives at March 31, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category March 31, 2020 Embedded derivatives $ 9,522 $ 826 Other assets December 31, 2019 Embedded derivatives $ 9,627 $ 465 Other assets The table below identifies the gains and losses recognized on Heartland's embedded derivatives for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended March 31, 2020 Embedded derivatives $ 361 Other noninterest income Three Months Ended March 31, 2019 Embedded derivatives $ 889 Other noninterest 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 other free standing derivative instruments not designated as hedging instruments at March 31, 2020, and December 31, 2019, in thousands: Balance Sheet Category Notional Amount Fair Value March 31, 2020 Interest rate lock commitments (mortgage) Other assets $ 70,051 $ 2,457 Forward commitments Other assets 5,000 30 Forward commitments Other liabilities 64,500 (1,273) Undesignated interest rate swaps Other liabilities 9,522 (826) December 31, 2019 Interest rate lock commitments (mortgage) Other assets $ 20,356 $ 681 Forward commitments Other assets 16,000 15 Forward commitments Other liabilities 36,500 (113) Undesignated interest rate swaps Other liabilities 9,627 (465) The table below identifies the income statement category of the gains and losses recognized in income on Heartland's other free standing derivative instruments not designated as hedging instruments for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended March 31, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 1,698 Forward commitments Net gains on sale of loans held for sale (1,146) Undesignated interest rate swaps Other noninterest income (361) Three Months Ended March 31, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 264 Forward commitments Net gains on sale of loans held for sale 117 Undesignated interest rate swaps Other noninterest income 889
Cash Flow Hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance Sheet Category and Fair Values of Derivative Instruments	The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as cash flow hedges at March 31, 2020, and December 31, 2019, in thousands: Notional Fair Balance Receive Weighted Maturity March 31, 2020 Interest rate swap $ 25,000 $ (435) Other liabilities 0.843 % 2.255 % 03/17/2021 Interest rate swap 24,667 (216) Other liabilities 3.363 3.674 05/10/2021 Interest rate swap 25,000 (2,587) Other liabilities 3.429 5.425 07/24/2028 Interest rate swap 20,000 (1,648) Other liabilities 0.741 2.390 06/15/2024 Interest rate swap 20,000 (1,502) Other liabilities 1.580 2.352 03/01/2024 Interest rate swap 6,000 (106) Other liabilities 0.741 1.866 06/15/2021 Interest rate swap 3,000 (51) Other liabilities 1.219 1.878 06/30/2021 December 31, 2019 Interest rate swap $ 25,000 $ (167) Other liabilities 1.900 % 2.255 % 03/17/2021 Interest rate swap 20,000 (67) Other liabilities 2.043 3.355 01/07/2020 Interest rate swap 25,667 135 Other assets 4.215 3.674 05/10/2021 Interest rate swap 25,750 (1,384) Other liabilities 4.280 5.425 07/24/2028 Interest rate swap 20,000 (614) Other liabilities 1.894 2.390 06/15/2024 Interest rate swap 20,000 (561) Other liabilities 1.907 2.352 03/01/2024 Interest rate swap 6,000 (15) Other liabilities 1.894 1.866 06/15/2021 Interest rate swap 3,000 (9) Other liabilities 1.831 1.878 06/30/2021
Gains (Losses) on Derivative Instruments	The table below identifies the gains and losses recognized on Heartland's derivative instruments designated as cash flow hedges for the three-month periods ended March 31, 2020, and March 31, 2019, in thousands: Effective Portion Ineffective Portion Recognized in OCI Reclassified from AOCI into Income Recognized in Income on Derivatives Amount of Category Amount of Category Amount of Three Months Ended March 31, 2020 Interest rate swaps $ (3,863) Interest expense $ 183 Other income $ — Three Months Ended March 31, 2019 Interest rate swaps $ (1,340) Interest expense $ (165) Other income $ —
Fair value hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance Sheet Category and Fair Values of Derivative Instruments	The table below identifies the notional amount, fair value and balance sheet category of Heartland's fair value hedges at March 31, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category March 31, 2020 Fair value hedges 21,149 (2,930) Other liabilities December 31, 2019 Fair value hedges 21,250 $ (1,253) Other liabilities
Gains (Losses) on Derivative Instruments	The table below identifies the gains and losses recognized on Heartland's fair value hedges for the three month periods ended March 31, 2020, and March 31, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended March 31, 2020 Fair value hedges $ (1,677) Interest income Three Months Ended March 31, 2019 Fair value hedges $ 894 Interest income
Loan Swap Hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Balance Sheet Category and Fair Values of Derivative Instruments	The table below identifies the balance sheet category and fair values of Heartland's derivative instruments designated as loan swaps at March 31, 2020, and December 31, 2019, in thousands: Notional Fair Balance Sheet Weighted Weighted March 31, 2020 Customer interest rate swaps $ 415,024 $ 47,476 Other assets 4.58 % 3.71 % Customer interest rate swaps 415,024 (47,476) Other liabilities 3.71 4.58 December 31, 2019 Customer interest rate swaps $ 374,191 $ 16,927 Other assets 4.68 % 4.05 % Customer interest rate swaps 374,191 (16,927) Other liabilities 4.05 4.68

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, and December 31, 2019, 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 March 31, 2020 Assets Securities available for sale U.S. government corporations and agencies $ 9,916 $ 8,569 $ 1,347 $ — Mortgage and asset-backed securities 2,520,004 — 2,520,004 — Obligations of states and political subdivisions 940,441 — 940,441 — Equity securities with a readily determinable fair value 18,260 — 18,260 — Derivative financial instruments (1) 48,302 — 48,302 — Interest rate lock commitments 2,457 — — 2,457 Forward commitments 30 — 30 — Total assets at fair value $ 3,539,410 $ 8,569 $ 3,528,384 $ 2,457 Liabilities Derivative financial instruments (2) $ 57,777 $ — $ 57,777 $ — Forward commitments 1,273 — 1,273 — Total liabilities at fair value $ 59,050 $ — $ 59,050 $ — December 31, 2019 Assets Securities available for sale U.S. government corporations and agencies $ 9,893 $ 8,503 $ 1,390 $ — Mortgage and asset-backed securities 2,577,278 — 2,577,278 — Obligations of states and political subdivisions 707,190 — 707,190 — Equity securities 18,435 — 18,435 — Derivative financial instruments (1) 17,527 — 17,527 — Interest rate lock commitments 681 — — 681 Total assets at fair value $ 3,331,019 $ 8,503 $ 3,321,835 $ 681 Liabilities Derivative financial instruments (2) $ 21,462 $ — $ 21,462 $ — Forward commitments 113 — 113 — Total liabilities at fair value $ 21,575 $ — $ 21,575 $ — (1) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps, embedded derivatives and free standing derivative instruments.
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 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent loans: Commercial and industrial $ 5,494 $ — $ — $ 5,494 $ 153 Owner occupied commercial real estate 2,129 — — 2,129 — Non-owner occupied commercial real estate 109 — — 109 — Real estate construction 132 — — 132 — Agricultural and agricultural real estate 1,980 — — 1,980 — Residential real estate 543 — — 543 52 Consumer 153 — — 153 — Total collateral dependent loans $ 10,540 $ — $ — $ 10,540 $ 205 Loans held for sale $ 22,957 $ — $ 22,957 $ — $ (1,734) Other real estate owned $ 6,074 $ — $ — $ 6,074 $ 66 Premises, furniture and equipment held for sale $ 2,967 $ — $ — $ 2,967 $ — Servicing rights $ 4,125 $ — $ — $ 4,125 $ 1,579 Fair Value Measurements at Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent impaired loans: Commercial and industrial $ 15,173 $ — $ — $ 15,173 $ 1,114 Owner occupied commercial real estate 1,352 — — 1,352 — Non-owner occupied commercial real estate 1,305 — — 1,305 — Real estate construction — — — — — Agricultural and agricultural real estate 12,623 — — 12,623 1,254 Residential real estate 4,978 — — 4,978 82 Consumer 1,033 — — 1,033 — Total collateral dependent impaired loans $ 36,464 $ — $ — $ 36,464 $ 2,450 Loans held for sale $ 26,748 $ — $ 26,748 $ — $ (980) Other real estate owned $ 6,914 $ — $ — $ 6,914 $ 947 Premises, furniture and equipment held for sale $ 2,967 $ — $ — $ 2,967 $ 735 Servicing rights $ 5,621 $ — $ — $ 5,621 $ 911
Fair Value Inputs, Assets, Quantitative Information	The following tables present additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which Heartland has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at Valuation Unobservable Range Interest rate lock commitments $ 2,457 Discounted cash flows Closing ratio 0-99% (88%) (1) Other real estate owned 6,074 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 4,125 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,967 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent impaired loans: Commercial 5,494 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 2,129 Modified appraised value Third party appraisal (2) Appraisal discount 0-6% (3) Non-owner occupied commercial real estate 109 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Real estate construction 132 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Agricultural and agricultural real estate 1,980 Modified appraised value Third party appraisal (2) Appraisal discount 0-6% (3) Residential real estate 543 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Consumer 153 Modified appraised value Third party valuation (2) Valuation discount 0-7% (3) (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. The weighted average closing ratio for PrimeWest Mortgage Corporation is 88%. (2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. (4) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups. Fair Value at Valuation Unobservable Range Interest rate lock commitments $ 681 Discounted cash flows Closing ratio 0-99% (90%) (1) Other real estate owned 6,914 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,621 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,967 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent impaired loans: Commercial 15,173 Modified appraised value Third party appraisal (2) Appraisal discount 0-25% (3) Owner occupied commercial real estate 1,352 Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Non-owner occupied commercial real estate 1,305 Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Real estate construction — Modified appraised value Third party appraisal (2) Appraisal discount 0-14% (3) Agricultural and agricultural real estate 12,623 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Residential real estate 3,088 Modified appraised value Third party appraisal (2) Appraisal discount 0-25% (3) Consumer 988 Modified appraised value Third party valuation (2) Valuation discount 0-10% (3) (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. (2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. (4) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	The changes in fair value of the interest rate lock commitments, which are Level 3 financial instruments measured on a recurring basis, are summarized in the following table, in thousands: For the Three Months Ended For the Year Ended Balance at January 1, $ 681 $ 725 Total gains (losses) included in earnings 1,698 18 Issuances 2,478 10,702 Settlements (2,400) (10,764) Balance at period end $ 2,457 $ 681
Fair Value, by Balance Sheet Grouping	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 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 239,743 $ 239,743 $ 239,743 $ — $ — Time deposits in other financial institutions 3,568 3,568 3,568 — — Securities: Carried at fair value 3,488,621 3,488,621 8,569 3,480,052 — Held to maturity 91,875 101,375 — 101,375 — Other investments 35,370 35,370 — 35,370 — Loans held for sale 22,957 22,957 — 22,957 — Loans, net: Commercial and industrial 2,518,034 2,507,060 — 2,501,566 5,494 Owner occupied commercial real estate 1,420,702 1,456,304 — 1,454,175 2,129 Non-owner occupied commercial real estate 1,543,466 1,567,555 — 1,567,446 109 Real estate construction 1,046,749 1,076,645 — 1,076,513 132 Agricultural and agricultural real estate 545,310 552,823 — 550,843 1,980 Residential real estate 783,815 798,549 — 798,006 543 Consumer 418,817 431,583 — 431,430 153 Total Loans, net 8,276,893 8,390,519 — 8,379,979 10,540 Cash surrender value on life insurance 172,140 172,140 — 172,140 — Derivative financial instruments (1) 48,302 48,302 — 48,302 — Interest rate lock commitments 2,457 2,457 — — 2,457 Forward commitments 30 30 — 30 — Financial liabilities: Deposits Demand deposits 3,696,974 3,696,974 — 3,696,974 — Savings deposits 6,366,610 6,366,610 — 6,366,610 — Time deposits 1,110,441 1,110,441 — 1,110,441 — Deposits held for sale — — — — — Short term borrowings 121,442 121,442 — 121,442 — Other borrowings 276,150 280,447 — 280,447 — Derivative financial instruments (2) 57,777 57,777 — 57,777 — Forward commitments 1,273 1,273 — 1,273 — (1) Includes embedded derivatives and back-to-back loan swaps. (2) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 378,734 $ 378,734 $ 378,734 $ — $ — Time deposits in other financial institutions 3,564 3,564 3,564 — — Securities: Carried at fair value 3,312,796 3,312,796 8,503 3,304,293 — Held to maturity 91,324 100,484 — 100,484 — Other investments 31,321 31,321 — 31,321 — Loans held for sale 26,748 26,748 — 26,748 — Loans, net: Commercial and industrial 2,530,809 2,621,253 — 2,606,080 15,173 Owner occupied commercial real estate 1,472,704 1,409,388 — 1,408,036 1,352 Non-owner occupied commercial real estate 1,495,877 1,397,527 — 1,396,222 1,305 Real estate construction 1,027,081 924,041 — 924,041 — Agricultural and agricultural real estate 565,837 576,821 — 564,198 12,623 Residential real estate 832,277 841,453 — 838,365 3,088 Consumer 443,332 470,927 — 469,939 988 Total Loans, net 8,297,522 8,243,343 — 8,206,879 36,464 Cash surrender value on life insurance 171,625 171,625 — 171,625 — Derivative financial instruments (1) 17,527 17,527 — 17,527 — Interest rate lock commitments 681 681 — — 681 Financial liabilities: Deposits Demand deposits 3,543,863 3,543,863 — 3,543,863 — Savings deposits 6,307,425 6,307,425 — 6,307,425 — Time deposits 1,193,043 1,193,043 — 1,193,043 — Short term borrowings 182,626 182,626 — 182,626 — Other borrowings 275,773 278,169 — 278,169 — Derivative financial instruments (1) 21,462 21,462 — 21,462 — Forward commitments 113 113 — 113 — (1) Includes embedded derivatives, back-to-back loan swaps, fair value hedges, free standing derivative instruments and cash flow hedges.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of noninterest income in-scope and out-of-scope of Topic 606	The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three-months ended March 31, 2020, and 2019, in thousands: Three Months Ended 2020 2019 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 3,438 $ 2,977 Overdraft fees 2,809 2,744 Customer service and other service fees 59 82 Credit card fee income 3,900 3,349 Debit card income 1,815 3,642 Total service charges and fees $ 12,021 $ 12,794 Trust fees 5,022 4,474 Brokerage and insurance commissions 733 734 Total noninterest income in-scope of Topic 606 $ 17,776 $ 18,002 Out-of-scope of Topic 606 Loan servicing income $ 963 $ 1,729 Securities gains/(losses), net 1,658 1,575 Unrealized gain/(loss) on equity securities, net (231) 258 Net gains on sale of loans held for sale 4,660 3,176 Valuation adjustment on servicing rights (1,565) (589) Income on bank owned life insurance 498 899 Other noninterest income 2,058 1,667 Total noninterest income out-of-scope of Topic 606 8,041 8,715 Total noninterest income $ 25,817 $ 26,717

STOCK COMPENSATION (Tables)

STOCK COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of Status of RSUs	A summary of the RSUs outstanding as of March 31, 2020, and 2019, and changes during the three months ended March 31, 2020 and 2019, follows: 2020 2019 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 254,383 $ 46.76 266,995 $ 43.89 Granted 165,731 32.57 125,966 45.77 Vested (86,441) 45.48 (117,122) 35.84 Forfeited (11,929) 48.38 (13,364) 49.89 Outstanding at March 31, 321,744 $ 40.14 262,475 $ 48.07

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of ROU Assets and Lease Liabilities	The table below presents Heartland's ROU assets and lease liabilities as of March 31, 2020 and December 31, 2019, in thousands: Classification March 31, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $ 21,868 $ 23,200 Operating lease liabilities Accrued expenses and other liabilities $ 23,182 $ 24,617
Schedule of Lease Costs and Supplemental Information	The table below presents the lease costs and supplemental information as of March 31, 2020 and 2019, in thousands: Three Months Ended Income Statement Category 2020 2019 Lease Cost Operating lease cost Occupancy expense $ 1,382 $ 1,405 Variable lease cost Occupancy expense 16 35 Total lease cost $ 1,398 $ 1,440 Supplemental Information Noncash reduction of ROU assets arising from lease modifications and terminations Occupancy expense $ 358 $ 1,209 Noncash reduction of lease liabilities arising from lease modifications and terminations Occupancy expense 386 — Supplemental balance sheet information As of March 31, 2020 Weighted-average remaining operating lease term (in years) 6.5 Weighted-average discount rate for operating leases 3.00 %
Schedule of Minimum Payments for Operating Leases	A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of March 31, 2020 are as follows, in thousands: Nine months ending December 31, 2020 $ 4,167 Year ending December 31, 2021 5,289 2022 4,065 2023 2,728 2024 2,015 Thereafter 7,300 Total lease payments $ 25,564 Less interest (2,382) Present value of lease liabilities $ 23,182
Schedule of Future Minimum Rental Payments for Operating Leases

BASIS OF PRESENTATION (Earnings

BASIS OF PRESENTATION (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share
Net income available to stockholders	$ 20,040	$ 31,497
Weighted average common shares outstanding for basic earnings per share (in shares)	36,821	34,564
Assumed incremental common shares issued upon vesting of outstanding restricted stock units (in shares)	75	136
Weighted average common shares for diluted earnings per share (in shares)	36,896	34,700
Earnings per common share — basic (in dollars per share)	$ 0.54	$ 0.91
Earnings per common share — diluted (in dollars per share)	$ 0.54	$ 0.91
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation (in shares)	0	2

BASIS OF PRESENTATION (Narrativ

BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss		$ 97,350	$ 62,639	$ 70,395	$ 61,963
Retained earnings		700,298		702,502
Income tax expense (benefit)		5,909	$ 8,310
Off-balance, credit loss liability		15,468		248
Allowance for credit loss		$ 197		0
Threshold period past due, nonperforming status of loans and leases		90 days
Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss				12,071
Retained earnings	$ 14,900
Income tax expense (benefit)	5,000
Off-balance, credit loss liability				$ 13,604
Allowance for credit loss	158
Impact of ASU 2016-13 adoption | Held-to-maturity Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	118
Income tax expense (benefit)	40
Impact of ASU 2016-13 adoption | Loans
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	12,100
Retained earnings	4,600
Income tax expense (benefit)	1,500
Impact of ASU 2016-13 adoption | Loans | Financial Asset Acquired with Credit Deterioration
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	6,000
Impact of ASU 2016-13 adoption | Unfunded Loan Commitment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	10,200
Income tax expense (benefit)	3,400
Off-balance, credit loss liability	$ 13,600

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 30, 2019	May 10, 2019	Mar. 31, 2020	Feb. 11, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Number of shares issued In exchange per share (in shares)				$ 207
Assets acquired			$ 13,294,509		$ 13,209,597
Gross loans held to maturity			8,374,236		8,367,917
Deposits acquired			11,174,025		$ 11,044,331
AIM Bancshares, Inc.
Business Acquisition [Line Items]
Share price (USD per share)				$ 685
Blue Valley Ban Corp.
Business Acquisition [Line Items]
Share price (USD per share)		$ 44.78
Consideration paid		$ 92,300
Purchase price paid by delivery of shares of common stock (in shares)		2,060,258
Outstanding debt repaid		$ 6,900
AIM Bancshares, Inc.
Business Acquisition [Line Items]
Assets acquired			1,820,000
Gross loans held to maturity			1,160,000
Deposits acquired			$ 1,580,000
Rockford Bank And Trust Company
Business Acquisition [Line Items]
Assets acquired	$ 495,700
Gross loans held to maturity	354,000
Deposits acquired	430,300
Purchase price in cash	$ 46,600
Blue Valley Ban Corp.
Business Acquisition [Line Items]
Assets acquired		766,200
Gross loans held to maturity		542,000
Deposits acquired		617,100
Trust Preferred Securities Subject to Mandatory Redemption | Blue Valley Ban Corp.
Business Acquisition [Line Items]
Trust preferred securities assumed		$ 16,100

SECURITIES (Securities availabl

SECURITIES (Securities available for sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 3,498,972
Gross Unrealized Gains	55,882	$ 29,765
Gross Unrealized Losses	(84,493)	(28,402)
Securities available for sale	3,470,361
Equity securities with a readily determinable fair value	18,260	18,435
Amortized, Total	3,517,232	3,311,433
Estimated Fair Value, Total	3,488,621	3,312,796
Total debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		3,292,998
Gross Unrealized Gains		29,765
Gross Unrealized Losses		(28,402)
Securities available for sale		3,294,361
U.S. government corporations and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,796	9,844
Gross Unrealized Gains	120	49
Gross Unrealized Losses	0	0
Securities available for sale	9,916	9,893
Mortgage and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,574,131	2,579,081
Gross Unrealized Gains	25,835	17,200
Gross Unrealized Losses	(79,962)	(19,003)
Securities available for sale	2,520,004	2,577,278
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	915,045	704,073
Gross Unrealized Gains	29,927	12,516
Gross Unrealized Losses	(4,531)	(9,399)
Securities available for sale	$ 940,441	$ 707,190

SECURITIES (Held to maturity se

SECURITIES (Held to maturity securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 92,072	$ 91,324
Gross Unrealized Gains	9,303	9,160
Gross Unrealized Losses	0	0
Securities, held to maturity, fair value	101,375	100,484
Allowance for credit loss	197	0
Obligations of states and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	92,072	91,324
Gross Unrealized Gains	9,303	9,160
Gross Unrealized Losses	0	0
Securities, held to maturity, fair value	101,375	100,484
Allowance for credit loss	$ 197	$ 0

SECURITIES (Securities availa_2

SECURITIES (Securities available for sale debt maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Due in 1 year or less	$ 13,010
Due in 1 to 5 years	28,459
Due in 5 to 10 years	77,800
Due after 10 years	805,572
Total debt securities	924,841
Mortgage and asset-backed securities	2,574,131
Equity securities with a readily determinable fair value	18,260	$ 18,435
Total investment securities	3,517,232
Estimated Fair Value
Due in 1 year or less	13,115
Due in 1 to 5 years	28,965
Due in 5 to 10 years	80,445
Due after 10 years	827,832
Total debt securities	950,357
Mortgage and asset-backed securities	2,520,004
Equity securities with a readily determinable fair value	18,260
Total investment securities	$ 3,488,621

SECURITIES (Securities held to

SECURITIES (Securities held to maturity debt maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost
Due in 1 year or less	$ 3,357
Due in 1 to 5 years	16,681
Due in 5 to 10 years	60,368
Due after 10 years	11,666
Amortized Cost	92,072	$ 91,324
Allowance for credit losses	(197)
Total investment securities	91,875	91,324
Estimated Fair Value
Due in 1 year or less	3,398
Due in 1 to 5 years	17,158
Due in 5 to 10 years	65,394
Due after 10 years	15,425
Estimated Fair Value	101,375	$ 100,484
Allowance for credit losses	0
Total investment securities	$ 101,375

SECURITIES (Narrative) (Details

SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Accrued interest receivable	$ 13,600
Fair value of securities pledged	1,020,000	$ 509,600
Amortized cost of FHLBs	$ 20,900	$ 16,800

SECURITIES (Gross realized gain

SECURITIES (Gross realized gain (loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 328,890	$ 434,154
Gross security gains	2,904	2,408
Gross security losses	$ 1,246	$ 833

SECURITIES (Debt securities ava

SECURITIES (Debt securities available for sale) (Details) $ in Thousands	Mar. 31, 2020USD ($)numberOfBankLocations	Dec. 31, 2019USD ($)numberOfBankLocations
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 1,457,868	$ 1,619,266
Fair Value, 12 months or longer	168,360	241,232
Fair Value, Total	1,626,228	1,860,498
Unrealized Losses, Less than 12 months	(70,155)	(23,588)
Unrealized Losses, 12 months or longer	(14,338)	(4,814)
Unrealized Losses, Total	$ (84,493)	$ (28,402)
Count, Less than 12 months | numberOfBankLocations	158	200
Count, 12 months or longer | numberOfBankLocations	44	58
Count, Total | numberOfBankLocations	202	258
U.S. government corporations and agencies
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 0	$ 0
Fair Value, 12 months or longer	0	0
Fair Value, Total	0	0
Unrealized Losses, Less than 12 months	0	0
Unrealized Losses, 12 months or longer	0	0
Unrealized Losses, Total	$ 0	$ 0
Count, Less than 12 months | numberOfBankLocations	0	0
Count, 12 months or longer | numberOfBankLocations	0	0
Count, Total | numberOfBankLocations	0	0
Mortgage and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 1,255,628	$ 1,231,732
Fair Value, 12 months or longer	168,360	241,232
Fair Value, Total	1,423,988	1,472,964
Unrealized Losses, Less than 12 months	(65,624)	(14,189)
Unrealized Losses, 12 months or longer	(14,338)	(4,814)
Unrealized Losses, Total	$ (79,962)	$ (19,003)
Count, Less than 12 months | numberOfBankLocations	129	150
Count, 12 months or longer | numberOfBankLocations	44	58
Count, Total | numberOfBankLocations	173	208
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 202,240	$ 387,534
Fair Value, 12 months or longer	0	0
Fair Value, Total	202,240	387,534
Unrealized Losses, Less than 12 months	(4,531)	(9,399)
Unrealized Losses, 12 months or longer	0	0
Unrealized Losses, Total	$ (4,531)	$ (9,399)
Count, Less than 12 months | numberOfBankLocations	29	50
Count, 12 months or longer | numberOfBankLocations	0	0
Count, Total | numberOfBankLocations	29	50

SECURITIES (Securities held t_2

SECURITIES (Securities held to maturity) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019
Fair Value
Less than 12 months	$ 0		$ 0
12 months or longer	0	$ 0
Total	0	0
Unrealized Losses
Less than 12 months	0	0
12 months or longer	0	0
Total	$ 0	0
Count, Less than 12 months	0
Count, 12 months or longer	0
Count, Total	0
Obligations of states and political subdivisions
Fair Value
Less than 12 months	$ 0		$ 0
12 months or longer	0	0
Total	0	0
Unrealized Losses
Less than 12 months	0	0
12 months or longer	0	0
Total	$ 0	$ 0
Count, Less than 12 months	0
Count, 12 months or longer	0
Count, Total	0

SECURITIES (Schedule of allowan

SECURITIES (Schedule of allowance for credit loss for securities held to maturity) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Jan. 01, 2020
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Balance at December 31, 2019	$ 0
Impact of ASU 2016-13 adoption	0
Balance at March 31, 2020	197
Impact of ASU 2016-13 adoption
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Impact of ASU 2016-13 adoption		$ 158
Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Balance at December 31, 2019	0
Impact of ASU 2016-13 adoption	0
Provision for credit losses	39
Balance at March 31, 2020	197
Obligations of states and political subdivisions | Impact of ASU 2016-13 adoption
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Balance at December 31, 2019	158
Impact of ASU 2016-13 adoption	$ 158

SECURITIES (Schedule of financi

SECURITIES (Schedule of financing receivable credit quality indicators) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 92,072	$ 91,324
Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	92,072	$ 91,324
Standard & Poor's, AAA Rating [Member] | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	3,060
Standard & Poor's, AA, AA+, AA- [Member] | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	22,929
Standard & Poor's, A+, A, A- Rating [Member] | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	11,266
Standard & Poor's, BBB Rating [Member] | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	6,044
Standard & Poor's, Not Rated [Member] | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 48,773

LOANS (Loans receivable) (Detai

LOANS (Loans receivable) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans and Leases [Line Items]
Loans receivable	$ 8,374,236	$ 8,367,917
Total loans receivable held to maturity	8,374,236	8,367,917
Allowance for credit losses	(97,350)	(70,395)	$ (62,639)	$ (61,963)
Loans receivable, net	8,276,886	8,297,522
Accrued interest receivable	31,800
Commercial and industrial | Commercial and industrial
Loans and Leases [Line Items]
Loans receivable	2,550,490	2,530,809
Allowance for credit losses	(32,463)	(30,787)	(27,250)	(26,306)
Commercial and industrial | Owner occupied commercial real estate
Loans and Leases [Line Items]
Loans receivable	1,431,038	1,472,704
Allowance for credit losses	(10,336)	(8,214)	(6,330)	(6,525)
Commercial and industrial | Non-owner occupied commercial real estate
Loans and Leases [Line Items]
Loans receivable	1,551,787	1,495,877
Allowance for credit losses	(8,321)	(7,802)	(7,126)	(7,430)
Commercial and industrial | Real estate construction
Loans and Leases [Line Items]
Loans receivable	1,069,700	1,027,081
Allowance for credit losses	(22,951)	(11,599)	(9,994)	(9,679)
Agricultural and agricultural real estate
Loans and Leases [Line Items]
Loans receivable	550,107	565,837
Allowance for credit losses	(4,797)	(5,673)	(5,518)	(4,914)
Residential real estate
Loans and Leases [Line Items]
Loans receivable	792,540	832,277
Allowance for credit losses	(8,725)	(1,504)	(1,623)	(1,813)
Consumer
Loans and Leases [Line Items]
Loans receivable	428,574	443,332
Allowance for credit losses	$ (9,757)	$ (4,816)	$ (4,798)	$ (5,296)

LOANS (Allowance for credit los

LOANS (Allowance for credit losses on financing receivables) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	$ 6,342	$ 8,171
Collectively Evaluated for Credit Losses	91,008	62,224
Total	97,350	70,395	$ 62,639	$ 61,963
Loans Individually Evaluated for Credit Losses	48,839	87,052
Loans Collectively Evaluated for Credit Losses	8,325,397	8,280,865
Total	8,374,236	8,367,917
Commercial and industrial | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	3,695	6,276
Collectively Evaluated for Credit Losses	28,768	24,511
Total	32,463	30,787	27,250	26,306
Loans Individually Evaluated for Credit Losses	19,449	31,814
Loans Collectively Evaluated for Credit Losses	2,531,041	2,498,995
Total	2,550,490	2,530,809
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	1,054	351
Collectively Evaluated for Credit Losses	9,282	7,863
Total	10,336	8,214	6,330	6,525
Loans Individually Evaluated for Credit Losses	6,943	9,468
Loans Collectively Evaluated for Credit Losses	1,424,095	1,463,236
Total	1,431,038	1,472,704
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	29	33
Collectively Evaluated for Credit Losses	8,292	7,769
Total	8,321	7,802	7,126	7,430
Loans Individually Evaluated for Credit Losses	1,402	1,730
Loans Collectively Evaluated for Credit Losses	1,550,385	1,494,147
Total	1,551,787	1,495,877
Commercial and industrial | Real estate construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	51	0
Collectively Evaluated for Credit Losses	22,900	11,599
Total	22,951	11,599	9,994	9,679
Loans Individually Evaluated for Credit Losses	200	685
Loans Collectively Evaluated for Credit Losses	1,069,500	1,026,396
Total	1,069,700	1,027,081
Agricultural and agricultural real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	986	916
Collectively Evaluated for Credit Losses	3,811	4,757
Total	4,797	5,673	5,518	4,914
Loans Individually Evaluated for Credit Losses	17,450	18,554
Loans Collectively Evaluated for Credit Losses	532,657	547,283
Total	550,107	565,837
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	413	176
Collectively Evaluated for Credit Losses	8,312	1,328
Total	8,725	1,504	1,623	1,813
Loans Individually Evaluated for Credit Losses	2,910	20,678
Loans Collectively Evaluated for Credit Losses	789,630	811,599
Total	792,540	832,277
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	114	419
Collectively Evaluated for Credit Losses	9,643	4,397
Total	9,757	4,816	$ 4,798	$ 5,296
Loans Individually Evaluated for Credit Losses	485	4,123
Loans Collectively Evaluated for Credit Losses	428,089	439,209
Total	$ 428,574	$ 443,332

LOANS (Financing receivables, n

LOANS (Financing receivables, non accrual status) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	$ 46,007
Nonaccrual Loans with No Allowance for Credit Losses	33,273
Total Nonaccrual Loans	79,280	$ 76,548
Accruing Loans Past Due 90+ Days	0
Commercial and industrial | Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	15,541
Nonaccrual Loans with No Allowance for Credit Losses	11,466
Total Nonaccrual Loans	27,007	29,775
Accruing Loans Past Due 90+ Days	0
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	5,675
Nonaccrual Loans with No Allowance for Credit Losses	3,761
Total Nonaccrual Loans	9,436	6,938
Accruing Loans Past Due 90+ Days	0
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	364
Nonaccrual Loans with No Allowance for Credit Losses	1,264
Total Nonaccrual Loans	1,628	1,563
Accruing Loans Past Due 90+ Days	0
Commercial and industrial | Commercial Real Estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	1,062
Nonaccrual Loans with No Allowance for Credit Losses	17
Total Nonaccrual Loans	1,079	1,167
Accruing Loans Past Due 90+ Days	0
Agricultural and agricultural real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	7,225
Nonaccrual Loans with No Allowance for Credit Losses	14,485
Total Nonaccrual Loans	21,710	20,543
Accruing Loans Past Due 90+ Days	0
Residential real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	11,541
Nonaccrual Loans with No Allowance for Credit Losses	2,061
Total Nonaccrual Loans	13,602	13,067
Accruing Loans Past Due 90+ Days	0
Consumer
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	4,599
Nonaccrual Loans with No Allowance for Credit Losses	219
Total Nonaccrual Loans	4,818	$ 3,495
Accruing Loans Past Due 90+ Days	$ 0

LOANS (Financing receivables,_2

LOANS (Financing receivables, non accrual status narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Nonaccrual [Line Items]
Interest income on nonaccrual loans	$ 0
Troubled debt restructured loans	6.5	$ 7.6
Nonperforming Financial Instruments [Member]
Financing Receivable, Nonaccrual [Line Items]
Troubled debt restructured loans	3.6	3.8
Performing Financial Instruments [Member]
Financing Receivable, Nonaccrual [Line Items]
Troubled debt restructured loans	$ 2.9	$ 3.8

LOANS (Troubled debt restructur

LOANS (Troubled debt restructuring) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)loan	Mar. 31, 2019USD ($)loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	1	1
Pre- Modification Recorded Investment	$ 32	$ 36
Post- Modification Recorded Investment	$ 32	$ 42
With Payment Defaults
Number of Loans | loan	1	1
Recorded Investment	$ 241	$ 42
Commercial and industrial | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0
Commercial and industrial | Real estate construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0
Agricultural and agricultural real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	1	1
Pre- Modification Recorded Investment	$ 32	$ 36
Post- Modification Recorded Investment	$ 32	$ 42
With Payment Defaults
Number of Loans | loan	1	1
Recorded Investment	$ 241	$ 42
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0
Pre- Modification Recorded Investment	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0
Recorded Investment	$ 0	$ 0

LOANS (Troubled debt narrative)

LOANS (Troubled debt narrative) (Details) - loan	Mar. 31, 2020	Dec. 31, 2019
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loan relationships	0	0

LOANS (Loans by credit quality

LOANS (Loans by credit quality indicator) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 442,546
2019	1,922,369
2018	1,485,154
2017	1,055,434
2016	595,969
2015 and Prior	1,505,815
Revolving	1,366,949
Total	8,374,236	$ 8,367,917
Total gross loans receivable held to maturity	8,374,236	8,367,917
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	405,045
2019	1,842,959
2018	1,386,023
2017	975,060
2016	533,974
2015 and Prior	1,407,290
Revolving	1,290,155
Total	7,840,506	7,811,148
Total gross loans receivable held to maturity	7,840,506	7,811,148
Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		556,769
Total gross loans receivable held to maturity		556,769
Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	7,245
2019	39,789
2018	39,677
2017	44,662
2016	35,455
2015 and Prior	28,571
Revolving	47,288
Total	242,687
Total gross loans receivable held to maturity	242,687
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	30,256
2019	39,621
2018	59,454
2017	35,712
2016	26,540
2015 and Prior	69,954
Revolving	29,506
Total	291,043
Total gross loans receivable held to maturity	291,043
Commercial and industrial | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2020	121,487
2019	472,972
2018	271,176
2017	323,009
2016	159,881
2015 and Prior	407,415
Revolving	794,550
Total	2,550,490	2,530,809
Total gross loans receivable held to maturity	2,550,490	2,530,809
Commercial and industrial | Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	115,467
2019	449,215
2018	248,480
2017	295,304
2016	138,032
2015 and Prior	395,428
Revolving	746,177
Total	2,388,103	2,352,131
Total gross loans receivable held to maturity	2,388,103	2,352,131
Commercial and industrial | Commercial and industrial | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		178,678
Total gross loans receivable held to maturity		178,678
Commercial and industrial | Commercial and industrial | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,931
2019	10,902
2018	8,927
2017	11,106
2016	8,438
2015 and Prior	745
Revolving	33,670
Total	79,719
Total gross loans receivable held to maturity	79,719
Commercial and industrial | Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	89
2019	12,855
2018	13,769
2017	16,599
2016	13,411
2015 and Prior	11,242
Revolving	14,703
Total	82,668
Total gross loans receivable held to maturity	82,668
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	77,475
2019	332,796
2018	318,135
2017	223,372
2016	144,277
2015 and Prior	291,365
Revolving	43,618
Total	1,431,038	1,472,704
Total gross loans receivable held to maturity	1,431,038	1,472,704
Commercial and industrial | Owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	75,869
2019	316,692
2018	296,556
2017	192,402
2016	134,910
2015 and Prior	272,086
Revolving	40,197
Total	1,328,712	1,369,290
Total gross loans receivable held to maturity	1,328,712	1,369,290
Commercial and industrial | Owner occupied commercial real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		103,414
Total gross loans receivable held to maturity		103,414
Commercial and industrial | Owner occupied commercial real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	284
2019	4,426
2018	3,278
2017	24,877
2016	5,323
2015 and Prior	5,451
Revolving	60
Total	43,699
Total gross loans receivable held to maturity	43,699
Commercial and industrial | Owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,322
2019	11,678
2018	18,301
2017	6,093
2016	4,044
2015 and Prior	13,828
Revolving	3,361
Total	58,627
Total gross loans receivable held to maturity	58,627
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	118,269
2019	418,559
2018	290,636
2017	214,676
2016	134,629
2015 and Prior	344,585
Revolving	30,433
Total	1,551,787	1,495,877
Total gross loans receivable held to maturity	1,551,787	1,495,877
Commercial and industrial | Non-owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	98,574
2019	413,112
2018	280,142
2017	205,981
2016	130,152
2015 and Prior	328,567
Revolving	30,433
Total	1,486,961	1,429,760
Total gross loans receivable held to maturity	1,486,961	1,429,760
Commercial and industrial | Non-owner occupied commercial real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		66,117
Total gross loans receivable held to maturity		66,117
Commercial and industrial | Non-owner occupied commercial real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	260
2019	2,102
2018	8,873
2017	4,864
2016	3,630
2015 and Prior	7,290
Revolving	0
Total	27,019
Total gross loans receivable held to maturity	27,019
Commercial and industrial | Non-owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	19,435
2019	3,345
2018	1,621
2017	3,831
2016	847
2015 and Prior	8,728
Revolving	0
Total	37,807
Total gross loans receivable held to maturity	37,807
Commercial and industrial | Real estate construction
Financing Receivable, Credit Quality Indicator [Line Items]
2020	57,815
2019	438,562
2018	349,248
2017	115,430
2016	54,063
2015 and Prior	40,363
Revolving	14,219
Total	1,069,700	1,027,081
Total gross loans receivable held to maturity	1,069,700	1,027,081
Commercial and industrial | Real estate construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	52,053
2019	427,330
2018	338,112
2017	113,541
2016	38,848
2015 and Prior	38,446
Revolving	13,395
Total	1,021,725	984,736
Total gross loans receivable held to maturity	1,021,725	984,736
Commercial and industrial | Real estate construction | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		42,345
Total gross loans receivable held to maturity		42,345
Commercial and industrial | Real estate construction | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	9,237
2018	10,215
2017	393
2016	15,040
2015 and Prior	1,223
Revolving	824
Total	36,932
Total gross loans receivable held to maturity	36,932
Commercial and industrial | Real estate construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	5,762
2019	1,995
2018	921
2017	1,496
2016	175
2015 and Prior	694
Revolving	0
Total	11,043
Total gross loans receivable held to maturity	11,043
Agricultural and agricultural real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	36,913
2019	127,871
2018	88,639
2017	52,116
2016	28,929
2015 and Prior	68,698
Revolving	146,941
Total	550,107	565,837
Total gross loans receivable held to maturity	550,107	565,837
Agricultural and agricultural real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	32,744
2019	109,410
2018	60,433
2017	44,231
2016	21,196
2015 and Prior	47,884
Revolving	126,461
Total	442,359	454,272
Total gross loans receivable held to maturity	442,359	454,272
Agricultural and agricultural real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		111,565
Total gross loans receivable held to maturity		111,565
Agricultural and agricultural real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	770
2019	9,672
2018	7,048
2017	1,376
2016	2,451
2015 and Prior	5,702
Revolving	10,788
Total	37,807
Total gross loans receivable held to maturity	37,807
Agricultural and agricultural real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	3,399
2019	8,789
2018	21,158
2017	6,509
2016	5,282
2015 and Prior	15,112
Revolving	9,692
Total	69,941
Total gross loans receivable held to maturity	69,941
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	21,366
2019	93,308
2018	138,412
2017	108,928
2016	67,391
2015 and Prior	324,227
Revolving	38,908
Total	792,540	832,277
Total gross loans receivable held to maturity	792,540	832,277
Residential real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	21,366
2019	89,884
2018	136,425
2017	106,682
2016	65,243
2015 and Prior	299,054
Revolving	37,805
Total	756,459	790,226
Total gross loans receivable held to maturity	756,459	790,226
Residential real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		42,051
Total gross loans receivable held to maturity		42,051
Residential real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	3,111
2018	885
2017	1,848
2016	357
2015 and Prior	7,295
Revolving	0
Total	13,496
Total gross loans receivable held to maturity	13,496
Residential real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	313
2018	1,102
2017	398
2016	1,791
2015 and Prior	17,878
Revolving	1,103
Total	22,585
Total gross loans receivable held to maturity	22,585
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2020	9,221
2019	38,301
2018	28,908
2017	17,903
2016	6,799
2015 and Prior	29,162
Revolving	298,280
Total	428,574	443,332
Total gross loans receivable held to maturity	428,574	443,332
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8,972
2019	37,316
2018	25,875
2017	16,919
2016	5,593
2015 and Prior	25,825
Revolving	295,687
Total	416,187	430,733
Total gross loans receivable held to maturity	416,187	430,733
Consumer | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		12,599
Total gross loans receivable held to maturity		$ 12,599
Consumer | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	339
2018	451
2017	198
2016	216
2015 and Prior	865
Revolving	1,946
Total	4,015
Total gross loans receivable held to maturity	4,015
Consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	249
2019	646
2018	2,582
2017	786
2016	990
2015 and Prior	2,472
Revolving	647
Total	8,372
Total gross loans receivable held to maturity	$ 8,372

LOANS (Loans by credit qualit_2

LOANS (Loans by credit quality indicator narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Loans secured by residential real estate property in process of foreclosure	$ 2.2
Loans delinquent 30 to 89 days, percentage	0.38%	0.33%
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Percent of loans	60.00%
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Percent of loans	40.00%
Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Percent of nonaccrual loans	14.00%

LOANS (Past due financing recei

LOANS (Past due financing receivables) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 31,648	$ 31,928
Current	8,263,308	8,259,441
Nonaccrual	79,280	76,548
Total	8,374,236	8,367,917
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	21,693	25,322
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	9,955	2,501
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	4,105
Commercial and industrial | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total Past Due	5,846	9,924
Current	2,517,637	2,491,110
Nonaccrual	27,007	29,775
Total	2,550,490	2,530,809
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	5,346	5,121
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	500	904
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	3,899
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	2,490	4,177
Current	1,419,112	1,461,589
Nonaccrual	9,436	6,938
Total	1,431,038	1,472,704
Commercial and industrial | Owner occupied commercial real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,462	3,487
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,028	690
Commercial and industrial | Owner occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	9,890	695
Current	1,540,269	1,493,619
Nonaccrual	1,628	1,563
Total	1,551,787	1,495,877
Commercial and industrial | Non-owner occupied commercial real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,736	614
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	7,154	81
Commercial and industrial | Non-owner occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Commercial and industrial | Real estate construction
Financing Receivable, Past Due [Line Items]
Total Past Due	2,527	5,761
Current	1,066,094	1,020,153
Nonaccrual	1,079	1,167
Total	1,069,700	1,027,081
Commercial and industrial | Real estate construction | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,940	5,689
Commercial and industrial | Real estate construction | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	587	72
Commercial and industrial | Real estate construction | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Agricultural and agricultural real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	3,069	3,839
Current	525,328	541,455
Nonaccrual	21,710	20,543
Total	550,107	565,837
Agricultural and agricultural real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,789	3,734
Agricultural and agricultural real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	280	79
Agricultural and agricultural real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	26
Residential real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	5,784	4,370
Current	773,154	814,840
Nonaccrual	13,602	13,067
Total	792,540	832,277
Residential real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	5,637	4,166
Residential real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	147	24
Residential real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	180
Consumer
Financing Receivable, Past Due [Line Items]
Total Past Due	2,042	3,162
Current	421,714	436,675
Nonaccrual	4,818	3,495
Total	428,574	443,332
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,783	2,511
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	259	651
Consumer | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 0	$ 0

LOANS (Impaired loans) (Details

LOANS (Impaired loans) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Threshold period past due, nonperforming status of loans and leases	90 days
Unpaid Principal Balance
Impaired loans with a related allowance		$ 17,721
Impaired loans without a related allowance		75,171
Total impaired loans held to maturity		92,892
Loan Balance
Impaired loans with a related allowance		17,189
Impaired loans without a related allowance		69,863
Total impaired loans held to maturity		87,052
Related Allowance Recorded		8,172
Avg. Loan Balance
Impaired loans with a related allowance		18,217
Impaired loans without a related allowance		67,721
Total impaired loans held to maturity		85,938
Interest Income Recognized
Impaired loans with a related allowance		39
Impaired loans without a related allowance		1,596
Total impaired loans held to maturity		1,635
Commercial and industrial
Unpaid Principal Balance
Impaired loans with a related allowance		17
Impaired loans without a related allowance		668
Total impaired loans held to maturity		685
Loan Balance
Impaired loans with a related allowance		17
Impaired loans without a related allowance		668
Total impaired loans held to maturity		685
Related Allowance Recorded		0
Avg. Loan Balance
Impaired loans with a related allowance		0
Impaired loans without a related allowance		636
Total impaired loans held to maturity		636
Interest Income Recognized
Impaired loans with a related allowance		0
Impaired loans without a related allowance		26
Total impaired loans held to maturity		26
Commercial and industrial | Commercial and industrial
Unpaid Principal Balance
Impaired loans with a related allowance		11,727
Impaired loans without a related allowance		22,525
Total impaired loans held to maturity		34,252
Loan Balance
Impaired loans with a related allowance		11,710
Impaired loans without a related allowance		20,104
Total impaired loans held to maturity		31,814
Related Allowance Recorded		6,276
Avg. Loan Balance
Impaired loans with a related allowance		11,757
Impaired loans without a related allowance		19,141
Total impaired loans held to maturity		30,898
Interest Income Recognized
Impaired loans with a related allowance		6
Impaired loans without a related allowance		782
Total impaired loans held to maturity		788
Commercial and industrial | Owner occupied commercial real estate
Unpaid Principal Balance
Impaired loans with a related allowance		712
Impaired loans without a related allowance		8,756
Total impaired loans held to maturity		9,468
Loan Balance
Impaired loans with a related allowance		712
Impaired loans without a related allowance		8,756
Total impaired loans held to maturity		9,468
Related Allowance Recorded		352
Avg. Loan Balance
Impaired loans with a related allowance		1,435
Impaired loans without a related allowance		8,337
Total impaired loans held to maturity		9,772
Interest Income Recognized
Impaired loans with a related allowance		22
Impaired loans without a related allowance		341
Total impaired loans held to maturity		363
Commercial and industrial | Non-owner occupied commercial real estate
Unpaid Principal Balance
Impaired loans with a related allowance		138
Impaired loans without a related allowance		1,592
Total impaired loans held to maturity		1,730
Loan Balance
Impaired loans with a related allowance		138
Impaired loans without a related allowance		1,592
Total impaired loans held to maturity		1,730
Related Allowance Recorded		33
Avg. Loan Balance
Impaired loans with a related allowance		0
Impaired loans without a related allowance		1,515
Total impaired loans held to maturity		1,515
Interest Income Recognized
Impaired loans with a related allowance		0
Impaired loans without a related allowance		62
Total impaired loans held to maturity		62
Agricultural and agricultural real estate
Unpaid Principal Balance
Impaired loans with a related allowance		2,751
Impaired loans without a related allowance		19,113
Total impaired loans held to maturity		21,864
Loan Balance
Impaired loans with a related allowance		2,237
Impaired loans without a related allowance		16,317
Total impaired loans held to maturity		18,554
Related Allowance Recorded		916
Avg. Loan Balance
Impaired loans with a related allowance		2,739
Impaired loans without a related allowance		16,837
Total impaired loans held to maturity		19,576
Interest Income Recognized
Impaired loans with a related allowance		0
Impaired loans without a related allowance		60
Total impaired loans held to maturity		60
Residential real estate
Unpaid Principal Balance
Impaired loans with a related allowance		1,378
Impaired loans without a related allowance		19,382
Total impaired loans held to maturity		20,760
Loan Balance
Impaired loans with a related allowance		1,378
Impaired loans without a related allowance		19,300
Total impaired loans held to maturity		20,678
Related Allowance Recorded		176
Avg. Loan Balance
Impaired loans with a related allowance		1,116
Impaired loans without a related allowance		17,073
Total impaired loans held to maturity		18,189
Interest Income Recognized
Impaired loans with a related allowance		0
Impaired loans without a related allowance		280
Total impaired loans held to maturity		280
Consumer
Unpaid Principal Balance
Impaired loans with a related allowance		998
Impaired loans without a related allowance		3,135
Total impaired loans held to maturity		4,133
Loan Balance
Impaired loans with a related allowance		997
Impaired loans without a related allowance		3,126
Total impaired loans held to maturity		4,123
Related Allowance Recorded		419
Avg. Loan Balance
Impaired loans with a related allowance		1,170
Impaired loans without a related allowance		4,182
Total impaired loans held to maturity		5,352
Interest Income Recognized
Impaired loans with a related allowance		11
Impaired loans without a related allowance		45
Total impaired loans held to maturity		$ 56

LOANS (Carrying amount of loans

LOANS (Carrying amount of loans acquired narrative) (Details) - USD ($) $ in Millions	Nov. 30, 2019	May 10, 2019
Rockford Bank And Trust Company
Business Acquisition [Line Items]
Estimated fair value of loans acquired	$ 366.6
Loans held to maturity	$ 354
Blue Valley Ban Corp.
Business Acquisition [Line Items]
Estimated fair value of loans acquired		$ 558.2
Loans held to maturity		$ 542

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 70,395	$ 61,963
Charge-offs	(6,301)	(1,950)
Recoveries	1,320	991
Provision	19,865	1,635
Ending Balance	97,350	62,639
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at December 31, 2019	248
Impact of ASU 2016-13 adoption	15,468
Provision	1,616
Balance at March 31, 2020	15,468
Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	12,071
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at December 31, 2019	13,604
Impact of ASU 2016-13 adoption	13,604
Agricultural and Agricultural Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	5,673	4,914
Charge-offs	(253)	(379)
Recoveries	826	328
Provision	(1,069)	655
Ending Balance	4,797	5,518
Agricultural and Agricultural Real Estate | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	(380)
Residential Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,504	1,813
Charge-offs	(79)	(140)
Recoveries	3	52
Provision	2,480	(102)
Ending Balance	8,725	1,623
Residential Real Estate | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	4,817
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	4,816	5,296
Charge-offs	(352)	(374)
Recoveries	133	170
Provision	845	(294)
Ending Balance	9,757	4,798
Consumer | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	4,315
Commercial | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	30,787	26,306
Charge-offs	(5,596)	(980)
Recoveries	352	308
Provision	3,773	1,616
Ending Balance	32,463	27,250
Commercial | Commercial and industrial | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	3,147
Owner occupied commercial real estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	8,214	6,525
Charge-offs		(23)
Recoveries	1	89
Provision	2,528	(261)
Ending Balance	10,336	6,330
Owner occupied commercial real estate | Commercial and industrial | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	(407)
Non-owner occupied commercial real estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	7,802	7,430
Charge-offs	0	0
Recoveries	0	40
Provision	3,353	(344)
Ending Balance	8,321	7,126
Non-owner occupied commercial real estate | Commercial and industrial | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	(2,834)
Commercial Real Estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	11,599	9,679
Charge-offs	(21)	(54)
Recoveries	5	4
Provision	7,955	365
Ending Balance	22,951	$ 9,994
Commercial Real Estate | Commercial and industrial | Impact of ASU 2016-13 adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 3,413

GOODWILL, CORE DEPOSIT PREMIU_3

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Goodwill narrative) (Details) - USD ($)	May 18, 2018	Mar. 31, 2020	Dec. 31, 2019	Nov. 30, 2019	May 10, 2019
Goodwill [Line Items]
Goodwill		$ 446,345,000	$ 446,345,000
Goodwill impairment		$ 0
Rockford Bank And Trust Company
Goodwill [Line Items]
Goodwill				$ 19,200,000
Rockford Bank And Trust Company | Core Deposits
Goodwill [Line Items]
Intangibles recognized				$ 1,800,000
Intangibles, amortization period	10 years
Blue Valley Ban Corp.
Goodwill [Line Items]
Goodwill					$ 35,400,000
Blue Valley Ban Corp. | Core Deposits
Goodwill [Line Items]
Intangibles recognized					$ 11,400,000
Intangibles, amortization period	10 years

GOODWILL, CORE DEPOSIT PREMIU_4

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Carrying amount of intangible assets (incl accumulated amortization) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 113,250	$ 112,836
Accumulated Amortization	62,323	57,412
Net Carrying Amount	50,927	55,424
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	96,821	96,821
Accumulated Amortization	51,309	48,338
Net Carrying Amount	45,512	48,483
Customer relationship intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,177	1,177
Accumulated Amortization	982	972
Net Carrying Amount	195	205
Mortgage servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,262	7,886
Accumulated Amortization	4,137	2,265
Net Carrying Amount	4,125	5,621
Commercial servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,990	6,952
Accumulated Amortization	5,895	5,837
Net Carrying Amount	$ 1,095	$ 1,115

GOODWILL, CORE DEPOSIT PREMIU_5

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Mortgage and commercial loans servicing narrative) (Details)	Apr. 30, 2019USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Sep. 30, 2019
Valuation servicing rights in tranches [Line Items]
Loans guaranteed and sold with servicing retained		$ 5,220,000			$ 6,736,000
Valuation allowance		2,000,000
First Bank & Trust
Valuation servicing rights in tranches [Line Items]
Mortgage loans serviced for others		618,900,000			616,700,000
Custodial escrow balances maintained		$ 8,200,000			5,000,000
Mortgage servicing rights
Valuation servicing rights in tranches [Line Items]
Average constant prepayment rate		17.50%		14.20%
Servicing assets, discount rate		9.03%		9.03%
Fees collected for servicing of mortgage loans		$ 409,000	$ 427,000
Mortgage servicing rights | Measurement Input, Cap Rate | Minimum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0095				0.0093
Mortgage servicing rights | Measurement Input, Cap Rate | Maximum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0116				0.0117
Mortgage servicing rights | First Bank & Trust
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		$ 4,100,000			5,600,000
Commercial servicing rights
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		1,407,000	1,926,000		1,600,000
Loans guaranteed and sold with servicing retained		$ 77,600,000			$ 82,100,000
Commercial servicing rights | Minimum
Valuation servicing rights in tranches [Line Items]
Average constant prepayment rate		15.77%		14.25%
Servicing assets, discount rate		11.02%		10.65%
Commercial servicing rights | Maximum
Valuation servicing rights in tranches [Line Items]
Average constant prepayment rate		19.85%		18.08%
Servicing assets, discount rate		14.37%		13.94%
Commercial servicing rights | Measurement Input, Cap Rate | Minimum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0310			0.0310
Commercial servicing rights | Measurement Input, Cap Rate | Maximum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0445			0.0445
Mortgage Servicing Rights 15-year Tranche
Valuation servicing rights in tranches [Line Items]
Valuation allowance		$ 524,000		$ 114,000
Amortization period					15 years
Mortgage Servicing Rights 30-year Tranche
Valuation servicing rights in tranches [Line Items]
Valuation allowance		797,000
Amortization period					30 years
Less Than 20 Years
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		249,000			$ 285,000
Fees collected for servicing of mortgage loans		$ 118,000	$ 380,000
Period of tranche		20 years
Valuation allowance		$ 0		$ 0	0
Amortization period				20 years
More Than 20 Years
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		$ 1,158,000			1,309,000
Period of tranche		20 years
Valuation allowance		$ 0		$ 0	$ 0
Amortization period				20 years
Dubuque Bank and Trust Company | Mortgage servicing rights
Valuation servicing rights in tranches [Line Items]
Unpaid principal balance	$ 3,310,000,000
Sale of mortgage servicing rights	$ 20,600,000
Cash received from sale of Mortgage servicing rights		36,600,000
Gain on sale of mortgage servicing rights		$ 14,500,000

GOODWILL, CORE DEPOSIT PREMIU_6

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Estimated future amortization expense for amortizable intangible assets) (Details) $ in Thousands	Mar. 31, 2020USD ($)
Future amortization expense for amortizable intangible assets [Line Items]
Nine months ending December 31, 2020	$ 8,776
Year ending December 31,
2021	9,795
2022	8,062
2023	6,968
2024	5,693
2025	4,751
Thereafter	6,882
Total	50,927
Core Deposit Intangibles
Future amortization expense for amortizable intangible assets [Line Items]
Nine months ending December 31, 2020	7,606
Year ending December 31,
2021	8,691
2022	7,102
2023	6,201
2024	5,108
2025	4,265
Thereafter	6,539
Total	45,512
Customer Relationship Intangibles
Future amortization expense for amortizable intangible assets [Line Items]
Nine months ending December 31, 2020	27
Year ending December 31,
2021	35
2022	34
2023	34
2024	33
2025	32
Thereafter	0
Total	195
Mortgage Servicing Rights
Future amortization expense for amortizable intangible assets [Line Items]
Nine months ending December 31, 2020	920
Year ending December 31,
2021	801
2022	687
2023	572
2024	458
2025	344
Thereafter	343
Total	4,125
Commercial Servicing Rights
Future amortization expense for amortizable intangible assets [Line Items]
Nine months ending December 31, 2020	223
Year ending December 31,
2021	268
2022	239
2023	161
2024	94
2025	110
Thereafter	0
Total	$ 1,095

GOODWILL, CORE DEPOSIT PREMIU_7

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Changes in capitalized mortgage and commercial servicing rights) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Mortgage servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 5,621	$ 29,363
Originations	376	198
Amortization	(307)	(1,500)
Valuation allowance	(1,565)	(589)
Balance at end of period	$ 4,125	$ 27,472
Servicing rights, net to servicing portfolio	0.67%	0.68%
Commercial servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 1,115	$ 1,709
Originations	38	68
Amortization	(58)	(281)
Balance at end of period	1,095	1,496
Fair value of servicing rights	$ 1,407	$ 1,926	$ 1,600
Servicing rights, net to servicing portfolio	1.41%	1.58%

GOODWILL, CORE DEPOSIT PREMIU_8

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Book value, fair value of commercial serving rights and impairment) (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Impairment	$ 2,000,000
15 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	1,478,000		$ 1,482,000
Fair Value	954,000		1,368,000
Impairment	524,000		114,000
30 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	5,181,000		5,050,000
Fair Value	3,171,000		4,253,000
Impairment	2,010,000		797,000
Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	133,000		129,000
Fair Value	249,000		285,000
Impairment	0	$ 0	0
More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	962,000		986,000
Fair Value	1,158,000		1,309,000
Impairment	0	$ 0	0
First Bank & Trust | 15 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	1,478,000		1,482,000
Fair Value	954,000		1,368,000
Impairment	524,000		114,000
First Bank & Trust | 30 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	5,181,000		5,050,000
Fair Value	3,171,000		4,253,000
Impairment	2,010,000		797,000
Premier Valley Bank | Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	1,000		1,000
Fair Value	12,000		13,000
Impairment	0		0
Premier Valley Bank | More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	125,000		135,000
Fair Value	145,000		161,000
Impairment	0		0
Wisconsin Bank & Trust | Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	132,000		128,000
Fair Value	237,000		272,000
Impairment	0		0
Wisconsin Bank & Trust | More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value	837,000		851,000
Fair Value	1,013,000		1,148,000
Impairment	$ 0		$ 0

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Cash collateral on derivative financial instruments narrative) (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 3,900,000	$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	$ 0

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)transaction	May 18, 2018USD ($)
Derivative [Line Items]
Change in net unrealized losses and reclassification from AOCI to interest expense on cash flow hedges	$ 183
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense	$ 733
Interest Rate Swaps | Cash Flow Hedges
Derivative [Line Items]
Number of swap transactions | transaction	6
Derivative, notional amount	$ 105,000	$ 9,000
Interest Rate Swaps | Cash Flow Hedges | Heartland Financial Statutory Trust IV, V and VII
Derivative [Line Items]
Derivative, notional amount	85,000
Interest Rate Swaps | Cash Flow Hedges | Morrill Statutory Trust I and II
Derivative [Line Items]
Derivative, notional amount	20,000
Interest Rate Swaps | Cash Flow Hedges | Heartland Financial Statutory Trust VI
Derivative [Line Items]
Derivative, notional amount	$ 20,000
Interest Rate Swaps | Cash Flow Hedges | OCGI Statutory Trust III
Derivative [Line Items]
Derivative, notional amount		3,000
Interest Rate Swaps | Cash Flow Hedges | OCGI Capital Trust IV
Derivative [Line Items]
Derivative, notional amount		$ 6,000

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges balance sheet category and fair values) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other assets | Interest Rate Swap due May 10, 2021
Derivatives, Fair Value [Line Items]
Notional Amount		$ 25,667
Fair Value		$ 135
Receive Rate		4.215%
Weighted Average Pay Rate		3.674%
Other liabilities | Interest Rate Swap due March 17, 2021
Derivatives, Fair Value [Line Items]
Notional Amount	$ 25,000	$ 25,000
Fair Value	$ (435)	$ (167)
Receive Rate	0.843%	1.90%
Weighted Average Pay Rate	2.255%	2.255%
Other liabilities | Interest Rate Swap due January 7, 2020
Derivatives, Fair Value [Line Items]
Notional Amount		$ 20,000
Fair Value		$ (67)
Receive Rate		2.043%
Weighted Average Pay Rate		3.355%
Other liabilities | Interest Rate Swap due May 10, 2021
Derivatives, Fair Value [Line Items]
Notional Amount	$ 24,667
Fair Value	$ (216)
Receive Rate	3.363%
Weighted Average Pay Rate	3.674%
Other liabilities | Interest Rate Swap Due July 24, 2028
Derivatives, Fair Value [Line Items]
Notional Amount	$ 25,000	$ 25,750
Fair Value	$ (2,587)	$ (1,384)
Receive Rate	3.429%	4.28%
Weighted Average Pay Rate	5.425%	5.425%
Other liabilities | Interest Rate Swap due June 15, 2024
Derivatives, Fair Value [Line Items]
Notional Amount	$ 20,000	$ 20,000
Fair Value	$ (1,648)	$ (614)
Receive Rate	0.741%	1.894%
Weighted Average Pay Rate	2.39%	2.39%
Other liabilities | Interest Rate Swap due March 1, 2024
Derivatives, Fair Value [Line Items]
Notional Amount	$ 20,000	$ 20,000
Fair Value	$ (1,502)	$ (561)
Receive Rate	1.58%	1.907%
Weighted Average Pay Rate	2.352%	2.352%
Other liabilities | Interest Rate Swap Due June 15, 2021
Derivatives, Fair Value [Line Items]
Notional Amount	$ 6,000	$ 6,000
Fair Value	$ (106)	$ (15)
Receive Rate	0.741%	1.894%
Weighted Average Pay Rate	1.866%	1.866%
Other liabilities | Interest Rate Swap Due June 30, 2021
Derivatives, Fair Value [Line Items]
Notional Amount	$ 3,000	$ 3,000
Fair Value	$ (51)	$ (9)
Receive Rate	1.219%	1.831%
Weighted Average Pay Rate	1.878%	1.878%

DERIVATIVE FINANCIAL INSTRUME_6

DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges gains (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Recognized in OCI, Amount of Gain (Loss)	$ (3,680)	$ (1,504)
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss)	190	(158)
Interest rate swaps
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Recognized in OCI, Amount of Gain (Loss)	(3,863)	(1,340)
Interest rate swaps | Interest expense
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss)	183	(165)
Interest rate swaps | Other income
Trading Activity, Gains and Losses, Net [Line Items]
Ineffective Portion, Recognized in Income on Derivatives, Amount of Gain (Loss)	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUME_7

DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges narrative) (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 3,900,000	$ 1,900,000
Fair Value Hedging | Interest Rate Swaps
Derivative [Line Items]
Cash pledged as collateral	$ 3,900,000	$ 3,400,000

DERIVATIVE FINANCIAL INSTRUME_8

DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges balance sheet category and fair values) (Details) - Fair value hedges - Other liabilities - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional Amount	$ 21,149	$ 21,250
Fair Value, Other liabilities	$ (2,930)	$ (1,253)

DERIVATIVE FINANCIAL INSTRUME_9

DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges gans (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Fair value hedges | Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss)	$ (1,677)	$ 894

DERIVATIVE FINANCIAL INSTRUM_10

DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives blance sheet category and fair values) (Details) - Embedded derivatives - Other assets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional Amount	$ 9,522	$ 9,627
Fair Value	$ 826	$ 465

DERIVATIVE FINANCIAL INSTRUM_11

DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives gain (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other noninterest income | Embedded derivatives
Derivative [Line Items]
Amount of Gain (Loss)	$ 361	$ 889

DERIVATIVE FINANCIAL INSTRUM_12

DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 3,900,000		$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	0
Back-to-Back Loan Swaps | Interest Rate Swaps
Derivative [Line Items]
Cash pledged as collateral	48,900,000		20,200,000
Back-to-Back Loan Swaps | Interest Rate Swaps | Interest income
Derivative [Line Items]
Gain (loss) recognized	0	$ 0
Back-to-Back Loan Swaps | Interest Rate Swaps | Counterparties
Derivative [Line Items]
Cash pledged as collateral	$ 0		$ 0

DERIVATIVE FINANCIAL INSTRUM_13

DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps balance sheet category and fair values) (Details) - Back-to-Back Loan Swaps - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other assets
Derivative [Line Items]
Notional Amount	$ 415,024	$ 374,191
Fair Value	47,476	16,927
Other liabilities
Derivative [Line Items]
Notional Amount	415,024	374,191
Fair Value	$ (47,476)	$ (16,927)
Weighted Average Receive Rate | Other assets
Derivative [Line Items]
Weighted Average Rate	4.58%	4.68%
Weighted Average Receive Rate | Other liabilities
Derivative [Line Items]
Weighted Average Rate	3.71%	4.05%
Weighted Average Pay Rate | Other assets
Derivative [Line Items]
Weighted Average Rate	3.71%	4.05%
Weighted Average Pay Rate | Other liabilities
Derivative [Line Items]
Weighted Average Rate	4.58%	4.68%

DERIVATIVE FINANCIAL INSTRUM_14

DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives narrative) (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 3,900,000	$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	0
Not Designated as Hedging Instrument
Derivative [Line Items]
Cash pledged as collateral	0
Not Designated as Hedging Instrument | Counterparties
Derivative [Line Items]
Cash pledged as collateral	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUM_15

DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives balance sheet category and fair values) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other assets | Interest rate lock commitments (mortgage)
Derivatives, Fair Value [Line Items]
Notional Amount	$ 70,051	$ 20,356
Fair Value	2,457	681
Other assets | Forward commitments
Derivatives, Fair Value [Line Items]
Notional Amount	5,000	16,000
Fair Value	30	15
Other liabilities | Forward commitments
Derivatives, Fair Value [Line Items]
Notional Amount	64,500	36,500
Fair Value	(1,273)	(113)
Other liabilities | Undesignated interest rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount	9,522	9,627
Fair Value	$ (826)	$ (465)

DERIVATIVE FINANCIAL INSTRUM_16

DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives gains (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net gains on sale of loans held for sale | Interest rate lock commitments (mortgage)
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Recognized	$ 1,698	$ 264
Net gains on sale of loans held for sale | Forward commitments
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Recognized	(1,146)	117
Other noninterest income | Undesignated interest rate swaps
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Recognized	$ (361)	$ 889

FAIR VALUE (Fair value measurem

FAIR VALUE (Fair value measurement recurring) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Securities available for sale	$ 3,470,361
Equity securities with a readily determinable fair value	18,260
Level 1
Assets
Securities available for sale	8,569	$ 8,503
Derivative assets	0	0
Liabilities
Derivative Liability	0	0
Level 2
Assets
Securities available for sale	3,480,052	3,304,293
Derivative assets	48,302	17,527
Liabilities
Derivative Liability	57,777	21,462
Level 3
Assets
Securities available for sale	0	0
Derivative assets	0	0
Liabilities
Derivative Liability	0	0
Forward commitments | Level 1
Assets
Derivative assets	0
Forward commitments | Level 2
Assets
Derivative assets	30
Forward commitments | Level 3
Assets
Derivative assets	0
U.S. government corporations and agencies
Assets
Securities available for sale	9,916	9,893
Mortgage and asset-backed securities
Assets
Securities available for sale	2,520,004	2,577,278
Obligations of states and political subdivisions
Assets
Securities available for sale	940,441	707,190
Recurring Basis
Assets
Equity securities with a readily determinable fair value	18,260	18,435
Total assets at fair value	3,539,410	3,331,019
Liabilities
Total liabilities at fair value	59,050	21,575
Recurring Basis | Level 1
Assets
Equity securities with a readily determinable fair value	0	0
Total assets at fair value	8,569	8,503
Liabilities
Total liabilities at fair value	0	0
Recurring Basis | Level 2
Assets
Equity securities with a readily determinable fair value	18,260	18,435
Total assets at fair value	3,528,384	3,321,835
Liabilities
Total liabilities at fair value	59,050	21,575
Recurring Basis | Level 3
Assets
Equity securities with a readily determinable fair value	0	0
Total assets at fair value	2,457	681
Liabilities
Total liabilities at fair value	0	0
Recurring Basis | Derivative financial instruments
Assets
Derivative assets	48,302	17,527
Liabilities
Derivative Liability	57,777	21,462
Recurring Basis | Derivative financial instruments | Level 1
Assets
Derivative assets	0	0
Liabilities
Derivative Liability	0	0
Recurring Basis | Derivative financial instruments | Level 2
Assets
Derivative assets	48,302	17,527
Liabilities
Derivative Liability	57,777	21,462
Recurring Basis | Derivative financial instruments | Level 3
Assets
Derivative assets	0	0
Liabilities
Derivative Liability	0	0
Recurring Basis | Interest rate lock commitments
Assets
Derivative assets	2,457	681
Recurring Basis | Interest rate lock commitments | Level 1
Assets
Derivative assets	0	0
Recurring Basis | Interest rate lock commitments | Level 2
Assets
Derivative assets	0	0
Recurring Basis | Interest rate lock commitments | Level 3
Assets
Derivative assets	2,457	681
Recurring Basis | Forward commitments
Assets
Derivative assets	30
Liabilities
Derivative Liability	1,273	113
Recurring Basis | Forward commitments | Level 1
Assets
Derivative assets	0
Liabilities
Derivative Liability	0	0
Recurring Basis | Forward commitments | Level 2
Assets
Derivative assets	30
Liabilities
Derivative Liability	1,273	113
Recurring Basis | Forward commitments | Level 3
Assets
Derivative assets	0
Liabilities
Derivative Liability	0	0
Recurring Basis | U.S. government corporations and agencies
Assets
Securities available for sale	9,916	9,893
Recurring Basis | U.S. government corporations and agencies | Level 1
Assets
Securities available for sale	8,569	8,503
Recurring Basis | U.S. government corporations and agencies | Level 2
Assets
Securities available for sale	1,347	1,390
Recurring Basis | U.S. government corporations and agencies | Level 3
Assets
Securities available for sale	0	0
Recurring Basis | Mortgage and asset-backed securities
Assets
Securities available for sale	2,520,004	2,577,278
Recurring Basis | Mortgage and asset-backed securities | Level 1
Assets
Securities available for sale	0	0
Recurring Basis | Mortgage and asset-backed securities | Level 2
Assets
Securities available for sale	2,520,004	2,577,278
Recurring Basis | Mortgage and asset-backed securities | Level 3
Assets
Securities available for sale	0	0
Recurring Basis | Obligations of states and political subdivisions
Assets
Securities available for sale	940,441	707,190
Recurring Basis | Obligations of states and political subdivisions | Level 1
Assets
Securities available for sale	0	0
Recurring Basis | Obligations of states and political subdivisions | Level 2
Assets
Securities available for sale	940,441	707,190
Recurring Basis | Obligations of states and political subdivisions | Level 3
Assets
Securities available for sale	$ 0	$ 0

FAIR VALUE (Fair value measur_2

FAIR VALUE (Fair value measurement non-recurring) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 6,074	$ 6,914
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	22,957	26,748
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	10,540	36,464
Loans held for sale	22,957	26,748
Other real estate owned	6,074	6,914
Fair Value, Measurements, Nonrecurring | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	4,125	5,621
Fair Value, Measurements, Nonrecurring | 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	2,967	2,967
Fair Value, Measurements, Nonrecurring | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	205	2,450
Loans held for sale	(1,734)	(980)
Other real estate owned	66	947
Fair Value, Measurements, Nonrecurring | Changes Measurement | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	1,579	911
Fair Value, Measurements, Nonrecurring | Changes Measurement | 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	0	735
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Loans held for sale	0	0
Other real estate owned	0	0
Fair Value, Measurements, Nonrecurring | Level 1 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	0	0
Fair Value, Measurements, Nonrecurring | Level 1 | 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	0	0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Loans held for sale	22,957	26,748
Other real estate owned	0	0
Fair Value, Measurements, Nonrecurring | Level 2 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	0	0
Fair Value, Measurements, Nonrecurring | Level 2 | 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	0	0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	10,540	36,464
Loans held for sale	0	0
Other real estate owned	6,074	6,914
Fair Value, Measurements, Nonrecurring | Level 3 | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	4,125	5,621
Fair Value, Measurements, Nonrecurring | Level 3 | 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	2,967	2,967
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	1,980	12,623
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	1,254
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	1,980	12,623
Fair Value, Measurements, Nonrecurring | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	543	4,978
Fair Value, Measurements, Nonrecurring | Residential real estate | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	52	82
Fair Value, Measurements, Nonrecurring | Residential real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Residential real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Residential real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	543	4,978
Fair Value, Measurements, Nonrecurring | Consumer
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	153	1,033
Fair Value, Measurements, Nonrecurring | Consumer | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Consumer | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Consumer | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Fair Value, Measurements, Nonrecurring | Consumer | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	153	1,033
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	5,494	15,173
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	153	1,114
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	5,494	15,173
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Owner occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	2,129	1,352
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Owner occupied commercial real estate | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Owner occupied commercial real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Owner occupied commercial real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Owner occupied commercial real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	2,129	1,352
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Non-owner occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	109	1,305
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Non-owner occupied commercial real estate | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Non-owner occupied commercial real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Non-owner occupied commercial real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Non-owner occupied commercial real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	109	1,305
Real estate construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	132	0
Real estate construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Real estate construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Real estate construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Real estate construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	$ 132	$ 0

FAIR VALUE (Quantitative Inform

FAIR VALUE (Quantitative Information about Level 3 fair value measurements) (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Interest rate lock commitments | Recurring Basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	$ 2,457	$ 681
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held for sale	0	0
Derivative assets	0	0
Level 3 | Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	2,457	681
Level 3 | Discounted cash flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights	4,125	5,621
Level 3 | Modified appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	6,074	6,914
Level 3 | Modified appraised value | Commercial and industrial
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	5,494	15,173
Level 3 | Modified appraised value | Owner occupied commercial real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	2,129	1,352
Level 3 | Modified appraised value | Non-owner occupied commercial real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	109	1,305
Level 3 | Modified appraised value | Real estate construction
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	132	0
Level 3 | Modified appraised value | Agricultural and agricultural real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	1,980	12,623
Level 3 | Modified appraised value | Residential real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	543	3,088
Level 3 | Modified appraised value | Consumer
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	153	988
Level 3 | Modified appraised value | Recurring Basis | Premises, furniture and equipment held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Premises, furniture and equipment held for sale	2,967	2,967
Level 3 | Interest rate lock commitments | Recurring Basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	2,457	681
Level 3 | Interest rate lock commitments | Discounted cash flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	$ 2,457	$ 681
Closing ratio | Level 3 | Weighted Average | Interest rate lock commitments | PrimeWest Mortgage Corporation
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0.88
Closing ratio | Level 3 | Discounted cash flows | Weighted Average | Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0.88	0.90
Closing ratio | Level 3 | Discounted cash flows | Minimum | Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0	0
Closing ratio | Level 3 | Discounted cash flows | Maximum | Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0.99	0.99
Appraisal discount | Level 3 | Modified appraised value | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Appraisal discount | Level 3 | Modified appraised value | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	10.00%	10.00%
Appraisal discount | Level 3 | Modified appraised value | Premises, furniture and equipment held for sale | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Appraisal discount | Level 3 | Modified appraised value | Premises, furniture and equipment held for sale | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	10.00%	10.00%
Commercial and industrial | Appraisal discount | Level 3 | Modified appraised value | Commercial and industrial | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Commercial and industrial | Appraisal discount | Level 3 | Modified appraised value | Commercial and industrial | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	15.00%	25.00%
Commercial and industrial | Appraisal discount | Level 3 | Modified appraised value | Real estate construction | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Commercial and industrial | Appraisal discount | Level 3 | Modified appraised value | Real estate construction | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	8.00%	14.00%
Agricultural and agricultural real estate | Appraisal discount | Level 3 | Modified appraised value | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Agricultural and agricultural real estate | Appraisal discount | Level 3 | Modified appraised value | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	6.00%	15.00%
Residential real estate | Appraisal discount | Level 3 | Modified appraised value | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Residential real estate | Appraisal discount | Level 3 | Modified appraised value | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	11.00%	25.00%
Consumer | Valuation discount | Level 3 | Modified appraised value | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	0.00%	0.00%
Consumer | Valuation discount | Level 3 | Modified appraised value | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	7.00%	10.00%

FAIR VALUE (Changes Level 3 ass

FAIR VALUE (Changes Level 3 assets fair value, recurring) (Details) - Interest rate lock commitments - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 681	$ 725
Total gains (losses) included in earnings	1,698	18
Issuances	2,478	10,702
Settlements	(2,400)	(10,764)
Balance at period end	$ 2,457	$ 681

FAIR VALUE (Estimated fair valu

FAIR VALUE (Estimated fair value financial instruments incl. carrying amounts) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities:
Carried at fair value	$ 3,470,361
Held to maturity	101,375	$ 100,484
Level 1
Financial assets:
Cash and cash equivalents	239,743	378,734
Time deposits in other financial institutions	3,568	3,564
Securities:
Carried at fair value	8,569	8,503
Held to maturity	0	0
Other investments	0	0
Loans held for sale	0	0
Loans, net	0	0
Cash surrender value on life insurance	0	0
Derivative assets	0	0
Financial liabilities:
Deposits held for sale	0
Short term borrowings	0	0
Other borrowings	0	0
Derivative liabilities	0	0
Level 1 | Interest rate lock commitments
Securities:
Derivative assets	0	0
Level 1 | Demand deposits
Financial liabilities:
Deposits	0	0
Level 1 | Savings deposits
Financial liabilities:
Deposits	0	0
Level 1 | Time deposits
Financial liabilities:
Deposits	0	0
Level 1 | Forward commitments
Financial liabilities:
Derivative liabilities	0	0
Level 2
Financial assets:
Cash and cash equivalents	0	0
Time deposits in other financial institutions	0	0
Securities:
Carried at fair value	3,480,052	3,304,293
Held to maturity	101,375	100,484
Other investments	35,370	31,321
Loans held for sale	22,957	26,748
Loans, net	8,379,979	8,206,879
Cash surrender value on life insurance	172,140	171,625
Derivative assets	48,302	17,527
Financial liabilities:
Deposits held for sale	0
Short term borrowings	121,442	182,626
Other borrowings	280,447	278,169
Derivative liabilities	57,777	21,462
Level 2 | Interest rate lock commitments
Securities:
Derivative assets	0	0
Level 2 | Demand deposits
Financial liabilities:
Deposits	3,696,974	3,543,863
Level 2 | Savings deposits
Financial liabilities:
Deposits	6,366,610	6,307,425
Level 2 | Time deposits
Financial liabilities:
Deposits	1,110,441	1,193,043
Level 2 | Forward commitments
Financial liabilities:
Derivative liabilities	1,273	113
Level 3
Financial assets:
Cash and cash equivalents	0	0
Time deposits in other financial institutions	0	0
Securities:
Carried at fair value	0	0
Held to maturity	0	0
Other investments	0	0
Loans held for sale	0	0
Loans, net	10,540	36,464
Cash surrender value on life insurance	0	0
Derivative assets	0	0
Financial liabilities:
Deposits held for sale	0
Short term borrowings	0	0
Other borrowings	0	0
Derivative liabilities	0	0
Level 3 | Interest rate lock commitments
Securities:
Derivative assets	2,457	681
Level 3 | Demand deposits
Financial liabilities:
Deposits	0	0
Level 3 | Savings deposits
Financial liabilities:
Deposits	0	0
Level 3 | Time deposits
Financial liabilities:
Deposits	0	0
Level 3 | Forward commitments
Financial liabilities:
Derivative liabilities	0	0
Commercial and industrial | Level 1 | Commercial and industrial
Securities:
Loans, net	0	0
Commercial and industrial | Level 1 | Real estate construction
Securities:
Loans, net	0	0
Commercial and industrial | Level 2 | Commercial and industrial
Securities:
Loans, net	2,501,566	2,606,080
Commercial and industrial | Level 2 | Real estate construction
Securities:
Loans, net	1,076,513	924,041
Commercial and industrial | Level 3 | Commercial and industrial
Securities:
Loans, net	5,494	15,173
Commercial and industrial | Level 3 | Real estate construction
Securities:
Loans, net	132	0
Owner occupied commercial real estate | Level 1 | Commercial and industrial
Securities:
Loans, net	0	0
Owner occupied commercial real estate | Level 2 | Commercial and industrial
Securities:
Loans, net	1,454,175	1,408,036
Owner occupied commercial real estate | Level 3 | Commercial and industrial
Securities:
Loans, net	2,129	1,352
Non-owner occupied commercial real estate | Level 1 | Commercial and industrial
Securities:
Loans, net	0	0
Non-owner occupied commercial real estate | Level 2 | Commercial and industrial
Securities:
Loans, net	1,567,446	1,396,222
Non-owner occupied commercial real estate | Level 3 | Commercial and industrial
Securities:
Loans, net	109	1,305
Agricultural and agricultural real estate | Level 1
Securities:
Loans, net	0	0
Agricultural and agricultural real estate | Level 2
Securities:
Loans, net	550,843	564,198
Agricultural and agricultural real estate | Level 3
Securities:
Loans, net	1,980	12,623
Residential real estate | Level 1
Securities:
Loans, net	0	0
Residential real estate | Level 2
Securities:
Loans, net	798,006	838,365
Residential real estate | Level 3
Securities:
Loans, net	543	3,088
Consumer | Level 1
Securities:
Loans, net	0	0
Consumer | Level 2
Securities:
Loans, net	431,430	469,939
Consumer | Level 3
Securities:
Loans, net	153	988
Carrying Amount
Financial assets:
Cash and cash equivalents	239,743	378,734
Time deposits in other financial institutions	3,568	3,564
Securities:
Carried at fair value	3,488,621	3,312,796
Held to maturity	91,875	91,324
Other investments	35,370	31,321
Loans held for sale	22,957	26,748
Loans, net	8,276,893	8,297,522
Cash surrender value on life insurance	172,140	171,625
Derivative assets	48,302	17,527
Financial liabilities:
Deposits held for sale	0
Short term borrowings	121,442	182,626
Other borrowings	276,150	275,773
Derivative liabilities	57,777	21,462
Carrying Amount | Interest rate lock commitments
Securities:
Derivative assets	2,457	681
Carrying Amount | Demand deposits
Financial liabilities:
Deposits	3,696,974	3,543,863
Carrying Amount | Savings deposits
Financial liabilities:
Deposits	6,366,610	6,307,425
Carrying Amount | Time deposits
Financial liabilities:
Deposits	1,110,441	1,193,043
Carrying Amount | Forward commitments
Financial liabilities:
Derivative liabilities	1,273	113
Carrying Amount | Commercial and industrial | Commercial and industrial
Securities:
Loans, net	2,518,034	2,530,809
Carrying Amount | Commercial and industrial | Real estate construction
Securities:
Loans, net	1,046,749	1,027,081
Carrying Amount | Owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,420,702	1,472,704
Carrying Amount | Non-owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,543,466	1,495,877
Carrying Amount | Agricultural and agricultural real estate
Securities:
Loans, net	545,310	565,837
Carrying Amount | Residential real estate
Securities:
Loans, net	783,815	832,277
Carrying Amount | Consumer
Securities:
Loans, net	418,817	443,332
Estimated Fair Value
Financial assets:
Cash and cash equivalents	239,743	378,734
Time deposits in other financial institutions	3,568	3,564
Securities:
Carried at fair value	3,488,621	3,312,796
Held to maturity	101,375	100,484
Other investments	35,370	31,321
Loans held for sale	22,957	26,748
Loans, net	8,390,519	8,243,343
Cash surrender value on life insurance	172,140	171,625
Derivative assets	48,302	17,527
Financial liabilities:
Deposits held for sale	0
Short term borrowings	121,442	182,626
Other borrowings	280,447	278,169
Derivative liabilities	57,777	21,462
Estimated Fair Value | Interest rate lock commitments
Securities:
Derivative assets	2,457	681
Estimated Fair Value | Demand deposits
Financial liabilities:
Deposits	3,696,974	3,543,863
Estimated Fair Value | Savings deposits
Financial liabilities:
Deposits	6,366,610	6,307,425
Estimated Fair Value | Time deposits
Financial liabilities:
Deposits	1,110,441	1,193,043
Estimated Fair Value | Forward commitments
Financial liabilities:
Derivative liabilities	1,273	113
Estimated Fair Value | Commercial and industrial | Commercial and industrial
Securities:
Loans, net	2,507,060	2,621,253
Estimated Fair Value | Commercial and industrial | Real estate construction
Securities:
Loans, net	1,076,645	924,041
Estimated Fair Value | Owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,456,304	1,409,388
Estimated Fair Value | Non-owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,567,555	1,397,527
Estimated Fair Value | Agricultural and agricultural real estate
Securities:
Loans, net	552,823	576,821
Estimated Fair Value | Residential real estate
Securities:
Loans, net	798,549	841,453
Estimated Fair Value | Consumer
Securities:
Loans, net	431,583	$ 470,927
Forward commitments | Level 1
Securities:
Derivative assets	0
Forward commitments | Level 2
Securities:
Derivative assets	30
Forward commitments | Level 3
Securities:
Derivative assets	0
Forward commitments | Carrying Amount
Securities:
Derivative assets	30
Forward commitments | Estimated Fair Value
Securities:
Derivative assets	$ 30

FAIR VALUE (Deposits held for s

FAIR VALUE (Deposits held for sale narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gains included in gains (losses) on sale of loans held for sale attributable to interest rate lock commitments	$ 4,660	$ 2,978
Interest rate lock commitments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gains included in gains (losses) on sale of loans held for sale attributable to interest rate lock commitments	$ 2,500		$ 681

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	$ 17,776	$ 18,002
Loan servicing income	963	1,729
Securities gains/(losses), net	1,658	1,575
Unrealized gain/(loss) on equity securities, net	(231)	258
Net gains on sale of loans held for sale	4,660	3,176
Valuation adjustment on servicing rights	(1,565)	(589)
Income on bank owned life insurance	498	899
Other noninterest income	2,058	1,667
Total noninterest income out-of-scope of Topic 606	8,041	8,715
TOTAL NONINTEREST INCOME	25,817	26,717
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	3,438	2,977
Overdraft fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	2,809	2,744
Customer service and other service fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	59	82
Credit card fee income
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	3,900	3,349
Debit card income
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	1,815	3,642
Total service charges and fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	12,021	12,794
Trust fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	5,022	4,474
Brokerage and insurance commissions
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	$ 733	$ 734

STOCK COMPENSATION (Narrative)

STOCK COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit related to share-based payment awards	$ 25		$ 336
Share-based compensation, period before change in control				6 months
Time-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, award vesting periods		3 years			3 years
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, award vesting periods	3 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs	$ 2,200		$ 2,400
Share-based unrecognized compensation costs	$ 8,100
Long-Term Incentive Plan 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	213,863
Long-Term Incentive Plan 2012 | Time-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)		114,944			90,073
Long-Term Incentive Plan 2012 | Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)		50,787			34,848
Share-based compensation, vesting percentage after change in control	100.00%
Share-based compensation, vesting period after change in control	24 months
Long-Term Incentive Plan 2012 | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, granted (in shares)	0		1,045

STOCK COMPENSATION (Summary of

STOCK COMPENSATION (Summary of RSUs Activity) (Details) - RSUs - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Shares
Outstanding at beginning of period (in shares)	254,383	266,995
Granted (in shares)	165,731	125,966
Vested (in shares)	(86,441)	(117,122)
Forfeited (in shares)	(11,929)	(13,364)
Outstanding at end of period (in shares)	321,744	262,475
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 46.76	$ 43.89
Granted (in dollars per share)	32.57	45.77
Vested (in dollars per share)	45.48	35.84
Forfeited (in dollars per share)	48.38	49.89
Outstanding at end of period (in dollars per share)	$ 40.14	$ 48.07

LEASES (Schedule of ROU Assets

LEASES (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets	$ 21,868	$ 23,200
Operating lease liabilities	$ 23,182	$ 24,617

LEASES (Schedule of Lease Costs

LEASES (Schedule of Lease Costs and Supplemental Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 1,382	$ 1,405
Variable lease cost	16	35
Total lease cost	1,398	1,440
Noncash reduction of ROU assets arising from lease modifications and terminations	358	1,209
Noncash reduction of lease liabilities arising from lease modifications and terminations	$ 386	$ 0
Weighted-average remaining operating lease term (in years)	6 years 6 months
Weighted-average discount rate for operating leases	3.00%

LEASES (Schedule of Minimum Pay

LEASES (Schedule of Minimum Payments for Operating Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Nine months ending December 31, 2020	$ 4,167
2021	5,289
2022	4,065
2023	2,728
2024	2,015
Thereafter	7,300
Total lease payments	25,564
Less interest	(2,382)
Present value of lease liabilities	$ 23,182	$ 24,617