Heartland Financial USA (HTLF) 10-Q 5 Nov 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 04, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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
Entity Common Stock, Shares Outstanding		36,885,807
Entity Central Index Key	0000920112
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock, par value $1.00 per share
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	HTLF
Security Exchange Name	NASDAQ
Depositary Shares, each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E
Trading Symbol	HTLFP
Security Exchange Name	NASDAQ

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 175,284	$ 206,607
Interest bearing deposits with other banks and other short-term investments	156,371	172,127
Cash and cash equivalents	331,655	378,734
Time deposits in other financial institutions	3,129	3,564
Securities:
Carried at fair value (cost of $4,869,531 at September 30, 2020, and $3,311,433 at December 31, 2019)	4,950,698	3,312,796
Held to maturity, net of allowance for credit losses of $61 at September 30, 2020 (fair value of $99,619 at September 30, 2020, and $100,484 at December 31, 2019)	88,700	91,324
Other investments, at cost	35,940	31,321
Loans held for sale	65,969	26,748
Loans receivable:
Loans receivable	9,099,646	8,367,917
Allowance for credit losses	(103,377)	(70,395)
Loans receivable, net	8,996,269	8,297,522
Premises, furniture and equipment, net	199,461	197,558
Premises, furniture and equipment held for sale	567	2,967
Other real estate, net	5,050	6,914
Goodwill	446,345	446,345
Core deposit intangibles and customer relationship intangibles, net	40,520	48,688
Servicing rights, net	5,752	6,736
Cash surrender value on life insurance	173,111	171,625
Other assets	269,498	186,755
TOTAL ASSETS	15,612,664	13,209,597
Deposits:
Demand	5,022,567	3,543,863
Savings	6,742,151	6,307,425
Time	1,002,392	1,193,043
Total deposits	12,767,110	11,044,331
Short-term borrowings	306,706	182,626
Other borrowings	524,045	275,773
Accrued expenses and other liabilities	203,199	128,730
TOTAL LIABILITIES	13,801,060	11,631,460
STOCKHOLDERS' EQUITY:
Common stock (par value $1 per share; 60,000,000 shares authorized at both September 30, 2020, and December 31, 2019; issued 36,885,390 shares at September 30, 2020, and 36,704,278 shares at December 31, 2019)	36,885	36,704
Capital surplus	847,377	839,857
Retained earnings	761,211	702,502
Accumulated other comprehensive income/(loss)	55,426	(926)
TOTAL STOCKHOLDERS' EQUITY	1,811,604	1,578,137
TOTAL LIABILITIES AND EQUITY	15,612,664	13,209,597
Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Series A Junior Participating preferred stock
STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Series B Fixed Rate Cumulative Perpetual 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
Series E Fixed-Rate Reset Cumulative Perpetual Preferred Stock
STOCKHOLDERS' EQUITY:
Preferred stock	$ 110,705	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities carried at fair value, cost	$ 4,869,531	$ 3,311,433
Allowance for Credit Losses	61	0
Estimated Fair Value	$ 99,619	$ 100,484
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	36,885,390	36,704,278
Obligations of states and political subdivisions
Allowance for Credit Losses	$ 61	$ 0
Estimated Fair Value	$ 99,619	$ 100,484
Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	6,104	6,104
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 B Fixed Rate 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 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
Series E Fixed-Rate Reset Cumulative Perpetual Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	11,500	0
Preferred stock, shares issued (in shares)	11,500	0
Preferred stock, shares outstanding (in shares)	11,500	0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INTEREST INCOME:
Interest and fees on loans	$ 102,657	$ 110,566	$ 316,076	$ 317,049
Interest on securities:
Taxable	25,016	18,567	70,109	50,566
Nontaxable	3,222	2,119	8,749	7,766
Interest on federal funds sold	0	0	0	4
Interest on interest bearing deposits in other financial institutions	72	2,151	847	5,742
TOTAL INTEREST INCOME	130,967	133,403	395,781	381,127
INTEREST EXPENSE:
Interest on deposits	4,962	17,982	25,678	47,333
Interest on short-term borrowings	78	250	435	1,477
Interest on other borrowings (includes $(595) and $24 of interest expense/(benefit) related to derivatives reclassified from accumulated other comprehensive income for the three months ended September 30, 2020 and 2019, respectively, and $(1,195) and $276 of interest expense/(benefit) related to derivatives reclassified from accumulated other comprehensive income for the nine months ended September 30, 2020 and 2019, respectively)	3,430	3,850	10,514	11,333
TOTAL INTEREST EXPENSE	8,470	22,082	36,627	60,143
NET INTEREST INCOME	122,497	111,321	359,154	320,984
Provision for credit losses	1,678	5,201	49,994	11,754
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	120,819	106,120	309,160	309,230
NONINTEREST INCOME:
Revenue from contract with customers	17,755	18,287	52,075	56,771
Loan servicing income	638	821	1,980	3,888
Securities gains, net (includes $1,099 and $2,013 of net security gains reclassified from accumulated other comprehensive income for the three months ended September 30, 2020 and 2019, respectively and $4,763 and $7,168 of net security gains reclassified from accumulated other comprehensive income for the nine months ended September 30, 2020 and 2019, respectively)	1,300	2,013	4,964	7,168
Unrealized gain on equity securities, net	155	144	604	514
Net gains on sale of loans held for sale	8,894	4,673	21,411	12,192
Valuation allowance on servicing rights	(120)	(626)	(1,676)	(1,579)
Income on bank owned life insurance	868	881	2,533	2,668
Other noninterest income	1,726	3,207	5,779	6,556
TOTAL NONINTEREST INCOME	31,216	29,400	87,670	88,178
NONINTEREST EXPENSES:
Salaries and employee benefits	50,978	49,927	151,053	150,107
Occupancy	6,732	6,594	19,705	19,627
Furniture and equipment	2,500	2,862	8,601	8,690
Professional fees	12,802	11,276	38,951	36,642
Advertising	928	2,622	4,128	7,551
Core deposit intangibles and customer relationship intangibles amortization	2,492	2,899	8,169	9,054
Other real estate and loan collection expenses	335	(89)	872	774
(Gain)/loss on sales/valuations of assets, net	1,763	356	2,480	(20,934)
Acquisition, integration and restructuring costs	1,146	1,500	3,195	6,043
Partnership investment in tax credit projects	927	3,052	1,902	4,992
Other noninterest expenses	9,793	11,968	32,638	33,749
TOTAL NONINTEREST EXPENSES	90,396	92,967	271,694	256,295
INCOME BEFORE INCOME TAXES	61,639	42,553	125,136	141,113
Income taxes (includes $429 and $502 of income tax expense reclassified from accumulated other comprehensive income for the three months ended September 30, 2020 and 2019, respectively and $1,509 and $1,740 of income tax expense reclassified from accumulated other comprehensive income for the nine months ended September 30, 2020 and 2019, respectively)	13,681	7,941	27,007	29,835
NET INCOME	47,958	34,612	98,129	111,278
Preferred dividends	(2,437)	0	(2,437)	0
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 45,521	$ 34,612	$ 95,692	$ 111,278
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 1.23	$ 0.94	$ 2.59	$ 3.12
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	1.23	0.94	2.59	3.11
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.20	$ 0.18	$ 0.60	$ 0.50
Service charges and fees
NONINTEREST INCOME:
Revenue from contract with customers	$ 11,749	$ 12,366	$ 34,742	$ 39,789
Trust fees
NONINTEREST INCOME:
Revenue from contract with customers	5,357	4,959	15,356	14,258
Brokerage and insurance commissions
NONINTEREST INCOME:
Revenue from contract with customers	$ 649	$ 962	$ 1,977	$ 2,724

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest expense	$ 3,430	$ 3,850	$ 10,514	$ 11,333
Gain (loss) on securities	1,300	2,013	4,964	7,168
Income tax expense (benefit)	13,681	7,941	27,007	29,835
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Derivatives
Interest expense	(595)	24	(1,195)	276
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Gain (loss) on securities	1,099	2,013	4,763	7,168
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss)
Income tax expense (benefit)	$ 429	$ 502	$ 1,509	$ 1,740

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 47,958	$ 34,612	$ 98,129	$ 111,278
Securities:
Net change in unrealized gain on securities	31,340	19,851	84,564	78,238
Reclassification adjustment for net gains realized in net income	(1,099)	(2,013)	(4,763)	(7,168)
Income taxes	(7,845)	(4,577)	(20,777)	(18,241)
Other comprehensive income on securities	22,396	13,261	59,024	52,829
Derivatives used in cash flow hedging relationships:
Net change in unrealized gain/(loss) on derivatives	1,199	(800)	(2,164)	(4,568)
Reclassification adjustment for net gains/(losses) on derivatives realized in net income	(601)	27	(1,214)	279
Income taxes	(126)	161	706	897
Other comprehensive income (loss) on cash flow hedges	472	(612)	(2,672)	(3,392)
Other comprehensive income	22,868	12,649	56,352	49,437
TOTAL COMPREHENSIVE INCOME	$ 70,826	$ 47,261	$ 154,481	$ 160,715

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 47,958	$ 34,612	$ 98,129	$ 111,278
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			20,726	23,561
Provision for Loan and Lease Losses			49,994	11,754
Net amortization of premium on securities			9,925	15,959
Securities gains, net	(1,300)	(2,013)	(4,964)	(7,168)
Unrealized gain on equity securities, net			(604)	(514)
Stock based compensation			5,551	4,833
Loans originated for sale			(461,723)	(289,877)
Proceeds on sales of loans held for sale			443,913	289,769
Net gains on sale of loans held for sale			(21,411)	(11,545)
(Increase) decrease in accrued interest receivable			(7,955)	932
(Increase) decrease in prepaid expenses			408	(3,611)
Increase (decrease) in accrued interest payable			(1,461)	1,905
Gain on extinguishment of debt			0	(375)
Capitalization of servicing rights			(2,633)	(756)
Valuation allowance on servicing rights	120	626	1,676	1,579
(Gain) loss on sales/valuations of assets, net			2,480	(10,378)
Net excess tax (expense) benefit from stock based compensation			(93)	270
Other, net			(48,914)	(40,706)
NET CASH PROVIDED BY OPERATING ACTIVITIES			83,044	96,910
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits in other financial institutions			(8)	(254)
Proceeds from the sale of securities available for sale	306,383	290,877	818,022	1,485,773
Proceeds from the sale of securities held to maturity			1,056	0
Proceeds from the maturity of and principal paydowns on securities available for sale			400,565	265,500
Proceeds from the maturity of and principal paydowns on securities held to maturity			3,235	2,938
Proceeds from the maturity of time deposits in other financial institutions			593	1,215
Proceeds from the sale, maturity of and principal paydowns on other investments			6,297	10,297
Purchase of securities available for sale			(2,777,981)	(1,984,228)
Purchase of other investments			(10,916)	(4,957)
Net increase in loans			(746,723)	(47,023)
Purchase of bank owned life insurance policies			(208)	(16)
Proceeds from bank owned life insurance policies			606	421
Proceeds from sale of mortgage servicing rights			0	33,823
Capital expenditures			(13,178)	(8,389)
Net cash and cash equivalents received in acquisitions			0	38,650
Proceeds from the sale of equipment			3,339	1,277
Net cash expended in divestitures			0	(49,264)
Proceeds on sale of OREO and other repossessed assets			2,559	6,907
NET CASH USED BY INVESTING ACTIVITIES			(2,312,742)	(247,330)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand deposits			1,478,704	159,044
Net increase in savings deposits			434,726	347,749
Net decrease in time deposit accounts			(190,651)	(397)
Net increase (decrease) in short-term borrowings			205,277	(43,733)
Proceeds from short term advances			541,545	430,888
Repayments of short term advances			(622,742)	(531,725)
Proceeds from other borrowings			254,833	50
Repayments of other borrowings			(7,399)	(17,769)
Payments for Repurchase of Warrants			0	(2,125)
Net proceeds from the issuance of preferred stock			110,705	0
Proceeds from issuance of common stock			2,150	576
Dividends paid			(24,529)	(18,001)
NET CASH PROVIDED BY FINANCING ACTIVITIES			2,182,619	324,557
Net increase (decrease) in cash and cash equivalents			(47,079)	174,137
Cash and cash equivalents at beginning of year			378,734	273,630	$ 273,630
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 331,655	$ 447,767	331,655	447,767	$ 378,734
Supplemental disclosures:
Cash paid for income/franchise taxes			26,701	30,523
Cash paid for interest			38,088	58,297
Loans transferred to OREO			1,706	7,421
Transfer of premises from premises, furniture and equipment, net, to premises, furniture and equipment held for sale			0	2,568
Transfer of premises from premises, furniture and equipment held for sale to premises, furniture and equipment, net			450	1,564
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			4,792	22,879
Transfer of available for sale securities to held to maturity securities			462	0
Purchases of loans held to maturity accrued, not settled			9,600	0
Stock consideration granted for acquisitions			$ 0	$ 92,258

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Preferred Stock	Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common StockCumulative Effect, Period of Adoption, Adjusted Balance	Capital Surplus	Capital SurplusCumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance
Balance at beginning of period at Dec. 31, 2018	$ 1,325,175	$ (1,713)	$ 1,323,462	$ 0	$ 0	$ 34,477	$ 34,477	$ 743,095	$ 743,095	$ 579,252	$ (1,713)	$ 577,539	$ (31,649)	$ (31,649)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	160,715									111,278			49,437
Cash dividends declared:
Common	(18,001)									(18,001)
Issuance of shares of common stock	92,834					2,219		90,615
Stock based compensation	4,833							4,833
Balance at end of period at Sep. 30, 2019	1,563,843			0		36,696		838,543		670,816			17,788
Balance at beginning of period at Dec. 31, 2018	$ 1,325,175	(1,713)	1,323,462	0	0	34,477	34,477	743,095	743,095	579,252	(1,713)	577,539	(31,649)	(31,649)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Balance at end of period at Dec. 31, 2019	$ 1,578,137	(14,891)	1,563,246	0	0	36,704	36,704	839,857	839,857	702,502	(14,891)	687,611	(926)	(926)
Balance at beginning of period at Jun. 30, 2019	1,521,787			0		36,690		837,150		642,808			5,139
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	47,261									34,612			12,649
Cash dividends declared:
Common	(6,604)									(6,604)
Issuance of shares of common stock	168					6		162
Stock based compensation	1,231							1,231
Balance at end of period at Sep. 30, 2019	1,563,843			0		36,696		838,543		670,816			17,788
Balance at beginning of period at Dec. 31, 2019	1,578,137	$ (14,891)	$ 1,563,246	0	$ 0	36,704	$ 36,704	839,857	$ 839,857	702,502	$ (14,891)	$ 687,611	(926)	$ (926)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	154,481									98,129			56,352
Cash dividends declared:
Preferred	(2,437)									(2,437)
Common	(22,092)									(22,092)
Issuance of shares of Series E preferred stock	110,705			110,705
Issuance of shares of common stock	2,150					181		1,969
Stock based compensation	5,551							5,551
Balance at end of period at Sep. 30, 2020	1,811,604			110,705		36,885		847,377		761,211			55,426
Balance at beginning of period at Jun. 30, 2020	1,747,377			110,705		36,845		844,202		723,067			32,558
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	70,826									47,958			22,868
Cash dividends declared:
Preferred	(2,437)									(2,437)
Common	(7,377)									(7,377)
Issuance of shares of common stock	1,222					40		1,182
Stock based compensation	1,993							1,993
Balance at end of period at Sep. 30, 2020	$ 1,811,604			$ 110,705		$ 36,885		$ 847,377		$ 761,211			$ 55,426

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends per share preferred stock (in dollars per share)	$ 211.94		$ 211.94
Cash dividends per share common stock (in dollars per share)	$ 0.20	$ 0.18	$ 0.60	$ 0.50
Shares of preferred stock issued (in shares)			11,500
Shares of common stock issued (in shares)	40,646	6,129	181,112	2,218,691

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 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 September 30, 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- and nine-month periods ended September 30, 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 $ 47,958 $ 34,612 Preferred dividends (2,437) — Net income available to common stockholders $ 45,521 $ 34,612 Weighted average common shares outstanding for basic earnings per share 36,941 36,692 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 54 143 Weighted average common shares for diluted earnings per share 36,995 36,835 Earnings per common share — basic $ 1.23 $ 0.94 Earnings per common share — diluted $ 1.23 $ 0.94 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 41 8 Nine Months Ended (Dollars and number of shares in thousands, except per share data) 2020 2019 Net income $ 98,129 $ 111,278 Preferred dividends (2,437) — Net income available to stockholders $ 95,692 $ 111,278 Weighted average common shares outstanding for basic earnings per share 36,882 35,675 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 74 143 Weighted average common shares for diluted earnings per share 36,956 35,818 Earnings per common share — basic $ 2.59 $ 3.12 Earnings per common share — diluted $ 2.59 $ 3.11 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 8 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 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 • risk in acquired portfolios • 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 on 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, June 30, 2020, and September 30, 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 September 30, 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 was effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and was 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. Heartland used this approach to evaluate its goodwill during the second quarter of 2020, as an unprecedented deterioration in economic conditions triggered by the COVID-19 pandemic caused a significant decline in stock market valuations, including Heartland's common stock price. Based on this goodwill impairment assessment, Heartland concluded that its goodwill was not impaired. 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 was 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	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Pending Acquisition Johnson Bank branches On June 9, 2020, Arizona Bank & Trust ("AB&T"), which is a wholly-owned subsidiary of Heartland headquartered in Phoenix, Arizona, entered into a purchase and assumption agreement, pursuant to which AB&T will acquire certain assets and will assume substantially all of the deposits and certain other liabilities of Johnson Bank's Arizona operations, which includes four banking centers. Johnson Bank is a wholly-owned subsidiary of Johnson Financial Group, Inc., headquartered in Racine, Wisconsin. Johnson Insurance Services is not a part of this transaction. Under the terms of the purchase and assumption agreement, AB&T will acquire Johnson Bank's Arizona banking centers, which had deposits of approximately $392.2 million and loans of approximately $183.8 million as of September 30, 2020. The actual amount of deposits assumed and loans acquired will be determined at closing. Heartland has received all regulatory approvals for this transaction. Because the purchase and assumption agreement was signed on June 9, 2020, and the transaction is expected to close in the fourth quarter of 2020, the transaction had no impact on Heartland's consolidated financial statements for the nine months ended September 30, 2020. Pending Acquisition AIM Bancshares, Inc. On October 19, 2020, Heartland entered into an Amended and Restated Agreement and Plan of Merger (the "amended and restated merger agreement") relating to the acquisition of AIM Bancshares, Inc. ("AIM") and its wholly-owned subsidiary, AimBank, headquartered in Levelland, Texas. The amended and restated merger agreement amends and restates the Agreement and Plan of Merger dated February 11, 2020 between Heartland and AIM (the "original merger agreement"). The original merger agreement was amended and restated to address certain regulatory concerns raised by the Federal Reserve Board during its review of the transaction contemplated by the original merger agreement. In response to discussions with the Federal Reserve Board, AIM and Heartland agreed that they could better serve the goals of the transaction and more easily address regulatory concerns if they effected the transaction by completing the two sequential mergers described in the next paragraph. AIM and Heartland also agreed to adjust the cash component of the merger consideration based on increases in AIM’s adjusted tangible common equity as a result of gains in AIM’s "available-for-sale" securities portfolio, an increase in AIM’s retained earnings and gains in AIM’s "held-to-maturity" securities portfolio since the date of the original merger agreement. A holdback provision was added to the amended and restated merger agreement as a result of certain litigation proceedings against AimBank. Certain other provisions of the original merger agreement were revised to reflect other changes in economic terms and the significantly delayed closing date of the transaction. In the first merger, AIM will merge with and into AimBank, and holders of shares of AIM common stock will receive one share of AimBank common stock for each share of AIM common stock owned by such holders. In the second merger, which will occur immediately following the consummation of the AIM/AimBank merger, AimBank will merge with and into Heartland’s wholly owned subsidiary, First Bank & Trust. In the second merger transaction, all issued and outstanding shares of AimBank common stock will be exchanged for shares of Heartland common stock and cash. As a result, each share of AimBank common stock received by shareholders of AIM in the first merger will be exchanged for 207.0 shares of Heartland common stock and $685.00 of cash. 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 amended and restated merger agreement. The transaction is structured as a tax-free reorganization with respect to the stock consideration received by shareholders of AIM. The combined entity, resulting from the merger of AimBank into First Bank & Trust, will operate as First Bank & Trust. As of September 30, 2020, AimBank had total assets of $1.85 billion, $1.14 billion of gross loans outstanding, and $1.60 billion of deposits. Because the amended and restated merger agreement was signed on October 19, 2020 and the transaction is expected to close in the fourth quarter of 2020, the transaction had no impact on Heartland's consolidated financial statements for the nine months ended September 30, 2020. 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, Heartland provided BVBC the funds necessary to repay outstanding debt of $6.9 million, and Heartland assumed $16.1 million of trust preferred securities at fair value. Immediately following the closing of the transaction, Bank of Blue Valley was merged with and into Heartland's wholly-owned Kansas subsidiary, Morrill & Janes Bank and Trust Company, and the combined entity operates under the Bank of Blue Valley brand. As of the closing date, BVBC had, at fair value, total assets of $766.2 million, total loans held to maturity of $542.0 million, and total deposits of $617.1 million. The transaction was a tax-free reorganization with respect to the stock consideration received by the stockholders of BVBC.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated September 30, 2020 U.S. government corporations and agencies $ 3,185 $ 87 $ — $ 3,272 Mortgage and asset-backed securities 3,719,747 46,959 (24,198) 3,742,508 Obligations of states and political subdivisions 1,127,030 60,974 (2,655) 1,185,349 Total debt securities 4,849,962 108,020 (26,853) 4,931,129 Equity securities with a readily determinable fair value 19,569 — — 19,569 Total $ 4,869,531 $ 108,020 $ (26,853) $ 4,950,698 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 September 30, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses September 30, 2020 Obligations of states and political subdivisions $ 88,761 $ 10,858 $ — $ 99,619 $ (61) Total $ 88,761 $ 10,858 $ — $ 99,619 $ (61) December 31, 2019 Obligations of states and political subdivisions $ 91,324 $ 9,160 $ — $ 100,484 $ — Total $ 91,324 $ 9,160 $ — $ 100,484 $ — As of September 30, 2020, Heartland had $14.7 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 September 30, 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. September 30, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 6,756 $ 6,784 Due in 1 to 5 years 25,556 26,229 Due in 5 to 10 years 68,084 72,131 Due after 10 years 1,029,819 1,083,477 Total debt securities 1,130,215 1,188,621 Mortgage and asset-backed securities 3,719,747 3,742,508 Equity securities with a readily determinable fair value 19,569 19,569 Total investment securities $ 4,869,531 $ 4,950,698 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 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. September 30, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 930 $ 944 Due in 1 to 5 years 18,694 19,855 Due in 5 to 10 years 59,367 65,371 Due after 10 years 9,770 13,449 Total debt securities 88,761 99,619 Allowance for credit losses (61) — Total investment securities $ 88,700 $ 99,619 As of September 30, 2020, and December 31, 2019, securities with a carrying value of $1.91 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- and nine-month periods ended September 30, 2020 and 2019, are summarized as follows, in thousands: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Proceeds from sales $ 306,383 $ 290,877 $ 818,022 $ 1,485,773 Gross security gains 1,825 2,371 8,687 10,301 Gross security losses 726 358 3,924 3,133 The following table summarizes, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 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 September 30, 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 September 30, 2020 Mortgage and asset-backed securities $ 1,277,625 $ (14,276) 69 $ 544,573 $ (9,922) 108 $ 1,822,198 $ (24,198) 177 Obligations of states and political subdivisions 155,689 (2,655) 29 — — — 155,689 (2,655) 29 Total temporarily impaired securities $ 1,433,314 $ (16,931) 98 $ 544,573 $ (9,922) 108 $ 1,977,887 $ (26,853) 206 December 31, 2019 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 Heartland had no securities held to maturity with unrealized losses at September 30, 2020, or December 31, 2019. 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 and nine months ended September 30, 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 and nine months ended September 30, 2020. In the third quarter of 2020, Heartland sold two obligations of states and political subdivisions securities from the held to maturity portfolio. Because the underlying credit quality of the individual securities showed significant deterioration, it was unlikely Heartland would recover the remaining basis of the securities prior to maturity and therefore inconsistent with Heartland's original intent upon purchase and classification of these held to maturity securities. The carrying value of these securities was $855,000, and the associated gross gains were $201,000. 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 three- and nine months ended September 30, 2020: Obligations of states and political subdivisions Balance at June 30, 2020 $ 62 Provision for credit losses (1) Balance at September 30, 2020 $ 61 Obligations of states and political subdivisions Balance at December 31, 2019 $ — Impact of ASU 2016-13 adoption on January 1, 2020 158 Adjusted balance at January 1, 2020 158 Provision for credit losses (97) Balance at September 30, 2020 $ 61 The following table summarizes, in thousands, the carrying amount of Heartland's held to maturity debt securities by investment rating as of September 30, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ — AA, AA+, AA- 27,465 A+, A, A- 10,451 BBB — Not Rated 50,845 Total $ 88,761 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 September 30, 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 September 30, 2020, did not consider the investments to be impaired.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
LOANS	LOANS Loans as of September 30, 2020, and December 31, 2019, were as follows, in thousands: September 30, 2020 December 31, 2019 Loans receivable held to maturity: Commercial and industrial $ 2,303,646 $ 2,530,809 Paycheck Protection Program ("PPP") 1,128,035 — Owner occupied commercial real estate 1,494,902 1,472,704 Non-owner occupied commercial real estate 1,659,683 1,495,877 Real estate construction 917,765 1,027,081 Agricultural and agricultural real estate 508,058 565,837 Residential real estate 701,899 832,277 Consumer 385,658 443,332 Total loans receivable held to maturity 9,099,646 8,367,917 Allowance for credit losses (103,377) (70,395) Loans receivable, net $ 8,996,269 $ 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 September 30, 2020, Heartland had $38.0 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 September 30, 2020, and December 31, 2019, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. As of September 30, 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 September 30, 2020 Commercial and industrial $ 5,745 $ 28,853 $ 34,598 $ 19,420 $ 2,284,226 $ 2,303,646 PPP — — — — 1,128,035 1,128,035 Owner occupied commercial real estate 263 10,966 11,229 11,833 1,483,069 1,494,902 Non-owner occupied commercial real estate — 12,127 12,127 3,644 1,656,039 1,659,683 Real estate construction 74 20,713 20,787 1,284 916,481 917,765 Agricultural and agricultural real estate 1,847 3,494 5,341 17,906 490,152 508,058 Residential real estate 135 9,536 9,671 4,661 697,238 701,899 Consumer 383 9,241 9,624 1,168 384,490 385,658 Total $ 8,447 $ 94,930 $ 103,377 $ 59,916 $ 9,039,730 $ 9,099,646 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 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 September 30, 2020, in thousands: Nonaccrual Nonaccrual Loans Total Accruing Loans September 30, 2020 Commercial and industrial $ 10,654 $ 10,732 $ 21,386 $ 431 Owner occupied commercial real estate 1,651 11,413 13,064 — Non-owner occupied commercial real estate — 3,644 3,644 — Real estate construction 751 902 1,653 — Agricultural and agricultural real estate 10,714 7,861 18,575 — Residential mortgage 8,237 8,289 16,526 1,250 Consumer 3,569 623 4,192 — Total $ 35,576 $ 43,464 $ 79,040 $ 1,681 Heartland recognized $0 of interest income on nonaccrual loans during the three- and nine months ended September 30, 2020. Heartland had $15.9 million of troubled debt restructured loans at September 30, 2020, of which $4.1 million were classified as nonaccrual and $11.8 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- and nine-month periods ended September 30, 2020, and September 30, 2019, dollars in thousands: Three Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial 1 $ 20 $ 20 — $ — $ — PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 1 9,434 9,434 — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate — — — — — — Consumer — — — — — — Total 2 $ 9,454 $ 9,454 — $ — $ — Nine Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial and industrial 1 $ 20 $ 20 — $ — $ — PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 1 9,434 9,434 — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate 2 92 98 4 276 288 Consumer — — — — — — Total 4 $ 9,546 $ 9,552 4 $ 276 $ 288 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- and nine months ended September 30, 2020, is due to principal deferment collected from government guarantees and capitalized interest and escrow. At September 30, 2020, there were no commitments to extend credit to any of the borrowers with an existing troubled debt restructured loan. The tables above do not include any loan modifications 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- and nine--month periods ended September 30, 2020, and September 30, 2019, that had been modified during the twelve-month period prior to default, in thousands: With Payment Defaults During the Three Months Ended September 30, 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — PPP — — — — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate — — — — Consumer — — — — Total — $ — — $ — With Payment Defaults During the Nine Months Ended September 30, 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — PPP — — — — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate 1 236 3 253 Consumer — — — — Total 1 $ 236 3 $ 253 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 September 30, 2020 and December 31, 2019. The following table shows the risk category of loans by loan category and year of origination as of September 30, 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 $ 363,812 $ 355,625 $ 181,366 $ 229,869 $ 118,285 $ 348,709 $ 480,474 $ 2,078,140 Watch 32,475 21,178 17,393 17,268 6,597 2,381 35,073 132,365 Substandard 3,996 8,303 21,543 17,789 10,748 14,478 16,284 93,141 Commercial and industrial total $ 400,283 $ 385,106 $ 220,302 $ 264,926 $ 135,630 $ 365,568 $ 531,831 $ 2,303,646 PPP Pass $ 1,063,169 $ — $ — $ — $ — $ — $ — $ 1,063,169 Watch 34,691 — — — — — — 34,691 Substandard 30,175 — — — — — — 30,175 PPP total $ 1,128,035 $ — $ — $ — $ — $ — $ — $ 1,128,035 Owner occupied commercial real estate Pass $ 226,358 $ 313,472 $ 286,767 $ 165,497 $ 111,839 $ 227,090 $ 32,287 $ 1,363,310 Watch 8,449 7,692 10,430 19,836 6,255 9,276 2,245 64,183 Substandard 8,923 6,506 14,875 12,576 9,318 14,949 262 67,409 Owner occupied commercial real estate total $ 243,730 $ 327,670 $ 312,072 $ 197,909 $ 127,412 $ 251,315 $ 34,794 $ 1,494,902 Non-owner occupied commercial real estate Pass $ 256,678 $ 411,467 $ 252,071 $ 193,575 $ 105,474 $ 253,755 $ 26,598 $ 1,499,618 Watch 14,535 9,949 14,788 20,394 7,648 18,171 475 85,960 Substandard 25,671 4,280 19,889 15,737 3,636 4,892 — 74,105 Non-owner occupied commercial real estate total $ 296,884 $ 425,696 $ 286,748 $ 229,706 $ 116,758 $ 276,818 $ 27,073 $ 1,659,683 Real estate construction Pass $ 188,216 $ 351,522 $ 235,386 $ 34,641 $ 14,609 $ 23,189 $ 16,716 $ 864,279 Watch 2,874 24,153 5,931 280 14,744 791 637 49,410 Substandard 199 2,018 353 686 394 426 — 4,076 Real estate construction total $ 191,289 $ 377,693 $ 241,670 $ 35,607 $ 29,747 $ 24,406 $ 17,353 $ 917,765 Agricultural and agricultural real estate Pass $ 86,754 $ 76,196 $ 45,596 $ 29,713 $ 15,357 $ 33,322 $ 114,403 $ 401,341 Watch 4,527 9,475 5,127 826 1,772 3,651 9,175 34,553 Substandard 14,563 4,914 18,457 6,419 3,799 12,762 11,250 72,164 Agricultural and agricultural real estate total $ 105,844 $ 90,585 $ 69,180 $ 36,958 $ 20,928 $ 49,735 $ 134,828 $ 508,058 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Residential real estate Pass $ 81,558 $ 72,198 $ 101,789 $ 78,394 $ 51,293 $ 250,936 $ 30,370 $ 666,538 Watch 81 3,462 825 1,402 338 5,844 346 12,298 Substandard 848 312 1,152 860 1,500 17,291 1,100 23,063 Residential real estate total $ 82,487 $ 75,972 $ 103,766 $ 80,656 $ 53,131 $ 274,071 $ 31,816 $ 701,899 Consumer Pass $ 24,864 $ 26,236 $ 18,451 $ 14,001 $ 3,955 $ 20,208 $ 265,699 $ 373,414 Watch 8 370 599 235 236 754 2,218 4,420 Substandard 487 696 2,234 652 762 2,152 841 7,824 Consumer total $ 25,359 $ 27,302 $ 21,284 $ 14,888 $ 4,953 $ 23,114 $ 268,758 $ 385,658 Total Pass $ 2,291,409 $ 1,606,716 $ 1,121,426 $ 745,690 $ 420,812 $ 1,157,209 $ 966,547 $ 8,309,809 Total Watch 97,640 76,279 55,093 60,241 37,590 40,868 50,169 417,880 Total Substandard 84,862 27,029 78,503 54,719 30,157 66,950 29,737 371,957 Total Loans $ 2,473,911 $ 1,710,024 $ 1,255,022 $ 860,650 $ 488,559 $ 1,265,027 $ 1,046,453 $ 9,099,646 Included in Heartland's nonpass loans at September 30, 2020 were $64.9 million of nonpass PPP loans as a result of risk ratings on related credits. Heartland's risk rating methodology assigns a risk rating to the whole lending relationship. Heartland has no allowance recorded related to the PPP loans because of the 100% SBA guarantee. 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 September 30, 2020, Heartland had $1.6 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 September 30, 2020, and December 31, 2019, in thousands: Accruing Loans 30-59 Days 60-89 Days 90 Days or Total Current Nonaccrual Total Loans September 30, 2020 Commercial and industrial $ 3,200 $ 2,293 $ 431 $ 5,924 $ 2,276,336 $ 21,386 $ 2,303,646 PPP — — — — 1,128,035 — 1,128,035 Owner occupied commercial real estate 1,052 896 — 1,948 1,479,890 13,064 1,494,902 Non-owner occupied commercial real estate 863 1,685 — 2,548 1,653,491 3,644 1,659,683 Real estate construction 310 597 — 907 915,205 1,653 917,765 Agricultural and agricultural real estate 1,308 — — 1,308 488,175 18,575 508,058 Residential real estate 1,820 86 1,250 3,156 682,217 16,526 701,899 Consumer 980 46 — 1,026 380,440 4,192 385,658 Total gross loans receivable held to maturity $ 9,533 $ 5,603 $ 1,681 $ 16,817 $ 9,003,789 $ 79,040 $ 9,099,646 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 0.17% at September 30, 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 sheet 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 sheet 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	9 Months Ended
	Sep. 30, 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- and nine- month periods ended September 30, 2020, and September 30, 2019, were as follows, in thousands: Commercial PPP Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Real Estate Residential Consumer Total Balance at June 30, 2020 $ 32,531 $ — $ 23,402 $ 10,162 $ 28,667 $ 5,701 $ 9,304 $ 10,170 $ 119,937 Charge-offs (7,077) — (13,328) (26) — (936) (54) (332) (21,753) Recoveries 369 — — 10 2 — 2 69 452 Provision 8,775 — 1,155 1,981 (7,882) 576 419 (283) 4,741 Balance at September 30, 2020 $ 34,598 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,341 $ 9,671 $ 9,624 $ 103,377 Commercial and Industrial PPP Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential 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 3,147 — (407) (2,834) 3,413 (380) 4,817 4,315 12,071 Adjusted balance at January 1, 2020 33,934 — 7,807 4,968 15,012 5,293 6,321 9,131 82,466 Charge-offs (15,440) — (13,541) (45) (105) (1,190) (368) (929) (31,618) Recoveries 1,153 — 192 18 217 826 97 413 2,916 Provision 14,951 — 16,771 7,186 5,663 412 3,621 1,009 49,613 Balance at September 30, 2020 $ 34,598 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,341 $ 9,671 $ 9,624 $ 103,377 Commercial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Real Estate Residential Consumer Total Balance at June 30, 2019 $ 27,680 6,182 7,482 10,010 $ 5,986 $ 1,592 $ 4,918 $ 63,850 Charge-offs (2,656) (43) (21) — (1,673) (3) (446) (4,842) Recoveries 1,526 3 100 38 199 52 95 2,013 Provision 1,874 1,108 186 640 858 164 371 5,201 Balance at September 30, 2019 $ 28,424 $ 7,250 $ 7,747 $ 10,688 $ 5,370 $ 1,805 $ 4,938 $ 66,222 Commercial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential 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 (7,607) (79) (21) (155) (2,100) (344) (1,266) (11,572) Recoveries 2,110 96 200 166 528 138 839 4,077 Provision 7,615 708 138 998 2,028 198 69 11,754 Balance at September 30, 2019 $ 28,424 $ 7,250 $ 7,747 $ 10,688 $ 5,370 $ 1,805 $ 4,938 $ 66,222 Changes in the allowance for credit losses on unfunded commitments for the three- and nine months ended September 30, 2020, were as follows: Balance at June 30, 2020 $ 17,392 Provision (3,062) Balance at September 30, 2020 $ 14,330 Balance at December 31, 2019 $ 248 Impact of ASU 2016-13 adoption on January 1, 2020 13,604 Adjusted balance at January 1, 2020 13,852 Provision 478 Balance at September 30, 2020 $ 14,330 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	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS	GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS Heartland had goodwill of $446.3 million at both September 30, 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 annual assessment. Due to the COVID-19 pandemic and economic conditions, an interim quantitative assessment of goodwill was performed during the second 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 September 30, 2020, and December 31, 2019, are presented in the table below, in thousands: September 30, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 96,821 $ 56,478 $ 40,343 $ 96,821 $ 48,338 $ 48,483 Customer relationship intangibles 1,177 1,000 177 1,177 972 205 Mortgage servicing rights 10,458 5,635 4,823 7,886 2,265 5,621 Commercial servicing rights 7,013 6,084 929 6,952 5,837 1,115 Total $ 115,469 $ 69,197 $ 46,272 $ 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 Three months ending December 31, 2020 $ 2,436 $ 9 $ 624 $ 69 $ 3,138 Year ending December 31, 2021 8,691 35 1,050 261 10,037 2022 7,102 34 900 232 8,268 2023 6,202 34 750 161 7,147 2024 5,108 33 600 103 5,844 2025 4,265 32 450 103 4,850 Thereafter 6,539 — 449 — 6,988 Total $ 40,343 $ 177 $ 4,823 $ 929 $ 46,272 Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of September 30, 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 $709.9 million at September 30, 2020 compared to $616.7 million at December 31, 2019. Custodial escrow balances maintained in connection with the mortgage loan servicing portfolio were approximately $16.9 million at September 30, 2020 and $5.0 million at December 31, 2019. At September 30, 2020, the fair value of the mortgage servicing rights was estimated at $4.8 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 16.90% for the September 30, 2020 valuation compared to 14.20% for the December 31, 2019 valuation. The discount rate was 9.02% for September 30, 2020 compared to 9.03% for December 31, 2019. The average capitalization rate for the first nine months of 2020 ranged from 76 to 116 basis points compared to a range of 80 to 98 basis points for the first nine months of 2019. Fees collected for the servicing of mortgage loans for others were $443,000 and $422,000 for the quarter ended September 30, 2020 and September 30, 2019, respectively, and $1.3 million for both the nine-month periods ended September 30, 2020 and September 30, 2019. The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the nine months ended September 30, 2020, and September 30, 2019: 2020 2019 Balance at January 1, $ 5,621 $ 29,363 Originations 2,571 654 Amortization (1,693) (2,867) Sale of mortgage servicing rights — (20,556) Valuation allowance (1,676) (1,572) Balance at period end $ 4,823 $ 5,022 Mortgage servicing rights, net to servicing portfolio 0.68 % 0.81 % 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 $71.2 million at September 30, 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 $70,000 and $216,000 for the quarter ended September 30, 2020 and September 30, 2019, respectively, and $242,000 and $826,000 for the nine-months ended September 30, 2020 and September 30, 2019. 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 15.12% to 18.37% as of September 30, 2020 compared to 14.25% to 18.08% as of December 31, 2019. The discount rate range was 6.93% to 10.43% for the September 30, 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 $1.5 million as of September 30, 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 nine-months ended September 30, 2020, and September 30, 2019: 2020 2019 Balance at January 1, $ 1,115 $ 1,709 Originations 62 102 Amortization (248) (555) Valuation allowance on commercial servicing rights — (7) Balance at period end $ 929 $ 1,249 Fair value of commercial servicing rights $ 1,497 $ 1,827 Commercial servicing rights, net to servicing portfolio 1.31 % 1.44 % 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 the carrying amount at each Heartland subsidiary. At September 30, 2020, a $534,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $2.1 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 September 30, 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 September 30, 2020, and December 31, 2019: September 30, 2020 Book Value 15-Year Tranche Fair Value 15-Year Tranche Valuation Allowance Book Value 30-Year Tranche Fair Value 30-Year Tranche Valuation Allowance First Bank & Trust 1,618 1,084 534 5,850 3,739 2,111 Total $ 1,618 $ 1,084 $ 534 $ 5,850 $ 3,739 $ 2,111 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 September 30, 2020, and December 31, 2019: September 30, 2020 Book Value Fair Value Valuation Allowance Book Value Fair Value Valuation Allowance Premier Valley Bank 1 9 — 94 156 — Wisconsin Bank & Trust 117 285 — 717 1,047 — Total $ 118 $ 294 $ — $ 811 $ 1,203 $ — 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	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS Heartland uses derivative financial instruments as part of its interest rate risk management strategy. As part of the strategy, Heartland considers the use of interest rate swaps, caps, floors, collars, and certain interest rate lock commitments and forward sales of securities related to mortgage banking activities. Heartland's current strategy includes the use of interest rate swaps, interest rate lock commitments and forward sales of mortgage securities. In addition, Heartland is facilitating back-to-back loan swaps to assist customers in managing interest rate risk. Heartland's objectives are to add stability to its net interest margin and to manage its exposure to movements in interest rates. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. Heartland is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. Heartland minimizes this risk by entering into derivative contracts with counterparties that meet Heartland’s credit standards, and the contracts contain collateral provisions protecting the at-risk party. Heartland has not experienced any losses from nonperformance by these counterparties. Heartland monitors counterparty risk in accordance with the provisions of ASC 815. In addition, interest rate-related derivative instruments generally contain language outlining collateral pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain threshold limits which are determined by credit ratings of each counterparty. Heartland was required to pledge $4.2 million of cash as collateral at September 30, 2020 compared to $1.9 million at December 31, 2019. At both September 30, 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 nine months ended September 30, 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 $1.2 million. For the next twelve months, Heartland estimates that cash payments and reclassification from accumulated other comprehensive income to interest expense will total $2.4 million. Heartland entered into four forward starting interest rate swap transactions to effectively convert Heartland Financial Statutory Trust IV, V, VI, and VII, which total $85.0 million, from variable rate subordinated debentures to fixed rate debt. For accounting purposes, these four 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 $85.0 million of Heartland's subordinated debentures that reset quarterly on a specified reset date. At inception, Heartland asserted that the underlying principal balance would remain outstanding throughout the hedge transaction, making it probable that sufficient LIBOR-based interest payments would exist through the maturity date of the swaps. During the first quarter of 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 September 30, 2020, and December 31, 2019, in thousands: Notional Fair Balance Receive Weighted Maturity September 30, 2020 Interest rate swap $ 25,000 $ (253) Other liabilities 0.246 % 2.255 % 03/17/2021 Interest rate swap 22,667 (147) Other liabilities 2.656 3.674 05/10/2021 Interest rate swap 23,500 (2,449) Other liabilities 2.651 5.425 07/24/2028 Interest rate swap 20,000 (1,592) Other liabilities 0.250 2.390 06/15/2024 Interest rate swap 20,000 (1,488) Other liabilities 0.246 2.352 03/01/2024 Interest rate swap 6,000 (74) Other liabilities 0.250 1.866 06/15/2021 Interest rate swap 3,000 (38) Other liabilities 0.275 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- and nine-month periods ended September 30, 2020, and September 30, 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 September 30, 2020 Interest rate swaps $ (604) Interest expense $ 595 Other income $ — Nine Months Ended September 30, 2020 Interest rate swaps $ (3,359) Interest expense $ 1,195 Other income $ — Three Months Ended September 30, 2019 Interest rate swaps $ (766) Interest expense $ (31) Other income $ — Nine Months Ended September 30, 2019 Interest rate swaps $ (4,269) Interest expense $ (296) 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 $4.2 million and $3.4 million of cash as collateral for these fair value hedges at September 30, 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 September 30, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2020 Fair value hedges $ 20,946 $ (2,900) 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- and nine- month periods ended September 30, 2020, and September 30, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended September 30, 2020 Fair value hedges $ 26 Interest income Nine Months Ended September 30, 2020 Fair value hedges $ (1,647) Interest income Three Months Ended September 30, 2019 Fair value hedges $ (263) Interest income Nine Months Ended September 30, 2019 Fair value hedges $ (1,553) 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 September 30, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2020 Embedded derivatives $ 9,308 $ 758 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- and nine--month periods ended September 30, 2020, and September 30, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended September 30, 2020 Embedded derivatives $ (69) Other noninterest income Nine Months Ended September 30, 2020 Embedded derivatives $ 293 Other noninterest income Three Months Ended September 30, 2019 Embedded derivatives $ 1,389 Other noninterest income Nine Months Ended September 30, 2019 Embedded derivatives $ 318 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 $53.2 million and $20.2 million as of September 30, 2020, and December 31, 2019, respectively, as collateral related to these back-to-back swaps. Heartland's counterparties were required to pledge $0 at September 30, 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- and nine months ended September 30, 2020 and September 30, 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 September 30, 2020, and December 31, 2019, in thousands: Notional Fair Balance Sheet Weighted Weighted September 30, 2020 Customer interest rate swaps $ 443,856 $ 49,629 Other assets 4.46 % 2.45 % Customer interest rate swaps 443,856 (49,629) Other liabilities 2.45 4.46 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 September 30, 2020, and December 31, 2019. Heartland's counterparties were required to pledge no collateral at both September 30, 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 September 30, 2020, and December 31, 2019, in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2020 Interest rate lock commitments (mortgage) Other assets $ 51,579 $ 2,255 Forward commitments Other assets 24,500 27 Forward commitments Other liabilities 72,500 (352) Undesignated interest rate swaps Other liabilities 9,308 (758) 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- and nine-month periods ended September 30, 2020, and September 30, 2019, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended September 30, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 249 Forward commitments Net gains on sale of loans held for sale (44) Undesignated interest rate swaps Other noninterest income 69 Nine Months Ended September 30, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 3,243 Forward commitments Net gains on sale of loans held for sale (228) Undesignated interest rate swaps Other noninterest income (293) Three Months Ended September 30, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ (255) Forward commitments Net gains on sale of loans held for sale 283 Undesignated interest rate swaps Other noninterest income (1,389) Nine Months Ended September 30, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 561 Forward commitments Net gains on sale of loans held for sale 255 Undesignated interest rate swaps Other noninterest income (318)

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 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 September 30, 2020 Assets Securities available for sale U.S. government corporations and agencies $ 3,272 $ 2,035 $ 1,237 $ — Mortgage and asset-backed securities 3,742,508 — 3,742,508 — Obligations of states and political subdivisions 1,185,349 — 1,185,349 — Equity securities with a readily determinable fair value 19,569 — 19,569 — Derivative financial instruments (1) 50,387 — 50,387 — Interest rate lock commitments 2,255 — — 2,255 Forward commitments 27 — 27 — Total assets at fair value $ 5,003,367 $ 2,035 $ 4,999,077 $ 2,255 Liabilities Derivative financial instruments (2) $ 59,328 $ — $ 59,328 $ — Forward commitments 352 — 352 — Total liabilities at fair value $ 59,680 $ — $ 59,680 $ — 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 September 30, 2020 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 9,602 $ — $ — $ 9,602 $ 445 Owner occupied commercial real estate 5,949 — — 5,949 9,456 Non-owner occupied commercial real estate 1,035 — — 1,035 — Real estate construction 449 — — 449 — Agricultural and agricultural real estate 13,923 — — 13,923 781 Residential real estate 376 — — 376 36 Consumer 250 — — 250 — Total collateral dependent individually assessed loans $ 31,584 $ — $ — $ 31,584 $ 10,718 Loans held for sale $ 65,969 $ — $ 65,969 $ — $ (2,648) Other real estate owned 5,050 — — 5,050 1,047 Premises, furniture and equipment held for sale 567 — — 567 — Servicing rights 4,823 — — 4,823 1,676 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 $ 2,255 Discounted cash flows Closing ratio 0-99% (86%) (1) Other real estate owned 5,050 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 4,823 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 567 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial 9,602 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 5,949 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Non-owner occupied commercial real estate 1,035 Modified appraised value Third party appraisal (2) Appraisal discount 0-7% (3) Real estate construction 449 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Agricultural and agricultural real estate 13,923 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Residential real estate 376 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Consumer 250 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 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 Nine Months Ended For the Year Ended Balance at January 1, $ 681 $ 725 Total net gains included in earnings 3,243 18 Issuances 11,387 10,702 Settlements (13,056) (10,764) Balance at period end $ 2,255 $ 681 Gains included in gains (losses) on sale of loans held for sale attributable to interest rate lock commitments held at September 30, 2020, and December 31, 2019, were $2.3 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 September 30, 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 September 30, 2020 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 331,655 $ 331,665 $ 331,665 $ — $ — Time deposits in other financial institutions 3,129 3,129 3,129 — — Securities: Carried at fair value 4,950,698 4,950,698 2,035 4,948,663 — Held to maturity 88,700 99,619 — 99,619 — Other investments 35,940 35,940 — 35,940 — Loans held for sale 65,969 65,969 — 65,969 — Loans, net: Commercial and industrial 2,269,048 2,229,482 — 2,219,880 9,602 PPP 1,128,035 1,128,035 — 1,128,035 — Owner occupied commercial real estate 1,483,673 1,470,592 — 1,464,643 5,949 Non-owner occupied commercial real estate 1,647,556 1,634,341 — 1,633,306 1,035 Real estate construction 896,978 907,919 — 907,470 449 Agricultural and agricultural real estate 502,717 484,657 — 470,734 13,923 Residential real estate 692,228 690,745 — 690,369 376 Consumer 376,034 374,832 — 374,582 250 Total Loans, net 8,996,269 8,920,603 — 8,889,019 31,584 Cash surrender value on life insurance 173,111 173,111 — 173,111 — Derivative financial instruments (1) 50,387 50,387 — 50,387 — Interest rate lock commitments 2,255 2,255 — — 2,255 Forward commitments 27 27 — 27 — Financial liabilities: Deposits Demand deposits 5,022,567 5,022,567 — 5,022,567 — Savings deposits 6,742,151 6,742,151 — 6,742,151 — Time deposits 1,002,392 1,002,392 — 1,002,392 — Short term borrowings 306,706 306,706 — 306,706 — Other borrowings 524,045 525,388 — 525,388 — Derivative financial instruments (2) 59,328 59,328 — 59,328 — Forward commitments 352 352 — 352 — (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 individually assessed or 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	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, requires revenue to be recognized at an amount that reflects the consideration to which Heartland expects to be entitled in exchange for transferring goods or services to a customer. ASC 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. The majority of Heartland's revenue streams including interest income, loan servicing income, net securities gain, net unrealized gains and losses on equity securities, net gains on sale of loans held for sale, valuation adjustment on servicing rights, income from bank owned life insurance and other noninterest income are outside the scope of ASC 606. Revenue streams including service charges and fees, interchange fees on credit and debit cards, trust fees and brokerage and insurance commissions are within the scope of ASC 606. 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 transaction 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 a 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 and nine months ended September 30, 2020, and 2019, in thousands: Three Months Ended Nine Months Ended 2020 2019 2020 2019 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 3,710 $ 3,221 $ 10,623 $ 9,383 Overdraft fees 2,184 2,917 6,627 8,537 Customer service and other service fees 39 104 133 270 Credit card fee income 3,894 3,936 11,861 11,555 Debit card income 1,922 2,188 5,498 10,044 Total service charges and fees 11,749 12,366 34,742 39,789 Trust fees 5,357 4,959 15,356 14,258 Brokerage and insurance commissions 649 962 1,977 2,724 Total noninterest income in-scope of Topic 606 17,755 18,287 52,075 56,771 Out-of-scope of Topic 606 Loan servicing income $ 638 $ 821 $ 1,980 $ 3,888 Securities gains, net 1,300 2,013 4,964 7,168 Unrealized gain on equity securities, net 155 144 604 514 Net gains on sale of loans held for sale 8,894 4,673 21,411 12,192 Valuation adjustment on servicing rights (120) (626) (1,676) (1,579) Income on bank owned life insurance 868 881 2,533 2,668 Other noninterest income 1,726 3,207 5,779 6,556 Total noninterest income out-of-scope of Topic 606 13,461 11,113 35,595 31,407 Total noninterest income $ 31,216 $ 29,400 $ 87,670 $ 88,178 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 September 30, 2020, and December 31, 2019, Heartland did not have any significant contract balances. Contract Acquisition Costs

STOCK COMPENSATION

STOCK COMPENSATION	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
STOCK COMPENSATION	STOCK COMPENSATIONHeartland may grant, through its Nominating, Compensation and Corporate Governance 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 2020 Long-Term Incentive Plan (the "Plan"). The Plan was approved by stockholders in May 2020 and replaces the 2012 Long-Term Incentive Plan. The Plan increases the number of shares of common stock authorized for issuance to 1,460,000 and makes certain other changes to the Plan. As of September 30, 2020, 1,421,218 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 $93,000 of tax expense during the nine months ended September 30, 2020 and a tax benefit of $270,000 during the nine months ended September 30, 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 nine months ended September 30, 2020, and September 30, 2019, 54,957 and 32,662 time-based RSUs, respectively, were granted to directors and new employees. A summary of the RSUs outstanding as of September 30, 2020, and 2019, and changes during the nine months ended September 30, 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 220,688 31.95 157,583 45.00 Vested (119,325) 44.49 (142,023) 38.93 Forfeited (15,674) 47.13 (26,136) 48.95 Outstanding at September 30, 340,072 $ 38.37 256,419 $ 46.96

LEASES

LEASES	9 Months Ended
	Sep. 30, 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 September 30, 2020 and December 31, 2019, in thousands: Classification September 30, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $ 19,963 $ 23,200 Operating lease liabilities Accrued expenses and other liabilities $ 21,949 $ 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 September 30, 2020 and 2019, in thousands: Three Months Ended Nine Months Ended Income Statement Category 2020 2019 2020 2019 Lease Cost Operating lease cost Occupancy expense $ 1,359 $ 1,681 $ 3,998 $ 4,548 Variable lease cost Occupancy expense 14 42 46 109 Total lease cost $ 1,373 $ 1,723 $ 4,044 $ 4,657 Supplemental Information Noncash reduction of ROU assets arising from lease modifications and terminations Occupancy expense $ 692 $ 495 $ 1,067 $ 2,959 Noncash reduction of lease liabilities arising from lease modifications and terminations Occupancy expense 3 284 389 2,771 Supplemental balance sheet information As of September 30, 2020 Weighted-average remaining operating lease term (in years) 6.50 Weighted-average discount rate for operating leases 2.97 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of September 30, 2020 are as follows, in thousands: Three months ending December 31, 2020 $ 1,422 Year ending December 31, 2021 5,406 2022 4,183 2023 2,850 2024 2,140 Thereafter 8,160 Total lease payments 24,161 Less interest (2,212) Present value of lease liabilities $ 21,949

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 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 September 30, 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 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 • risk in acquired portfolios • 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 on 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, June 30, 2020, and September 30, 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 September 30, 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 was effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and was 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. Heartland used this approach to evaluate its goodwill during the second quarter of 2020, as an unprecedented deterioration in economic conditions triggered by the COVID-19 pandemic caused a significant decline in stock market valuations, including Heartland's common stock price. Based on this goodwill impairment assessment, Heartland concluded that its goodwill was not impaired. 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 was 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 September 30, 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 September 30, 2020, and December 31, 2019, Heartland did not have any significant contract balances. Contract Acquisition Costs

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	9 Months Ended
	Sep. 30, 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- and nine-month periods ended September 30, 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 $ 47,958 $ 34,612 Preferred dividends (2,437) — Net income available to common stockholders $ 45,521 $ 34,612 Weighted average common shares outstanding for basic earnings per share 36,941 36,692 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 54 143 Weighted average common shares for diluted earnings per share 36,995 36,835 Earnings per common share — basic $ 1.23 $ 0.94 Earnings per common share — diluted $ 1.23 $ 0.94 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 41 8 Nine Months Ended (Dollars and number of shares in thousands, except per share data) 2020 2019 Net income $ 98,129 $ 111,278 Preferred dividends (2,437) — Net income available to stockholders $ 95,692 $ 111,278 Weighted average common shares outstanding for basic earnings per share 36,882 35,675 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 74 143 Weighted average common shares for diluted earnings per share 36,956 35,818 Earnings per common share — basic $ 2.59 $ 3.12 Earnings per common share — diluted $ 2.59 $ 3.11 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation — 8

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated September 30, 2020 U.S. government corporations and agencies $ 3,185 $ 87 $ — $ 3,272 Mortgage and asset-backed securities 3,719,747 46,959 (24,198) 3,742,508 Obligations of states and political subdivisions 1,127,030 60,974 (2,655) 1,185,349 Total debt securities 4,849,962 108,020 (26,853) 4,931,129 Equity securities with a readily determinable fair value 19,569 — — 19,569 Total $ 4,869,531 $ 108,020 $ (26,853) $ 4,950,698 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 September 30, 2020, and December 31, 2019, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses September 30, 2020 Obligations of states and political subdivisions $ 88,761 $ 10,858 $ — $ 99,619 $ (61) Total $ 88,761 $ 10,858 $ — $ 99,619 $ (61) 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 September 30, 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. September 30, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 6,756 $ 6,784 Due in 1 to 5 years 25,556 26,229 Due in 5 to 10 years 68,084 72,131 Due after 10 years 1,029,819 1,083,477 Total debt securities 1,130,215 1,188,621 Mortgage and asset-backed securities 3,719,747 3,742,508 Equity securities with a readily determinable fair value 19,569 19,569 Total investment securities $ 4,869,531 $ 4,950,698 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 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. September 30, 2020 Amortized Cost Estimated Fair Value Due in 1 year or less $ 930 $ 944 Due in 1 to 5 years 18,694 19,855 Due in 5 to 10 years 59,367 65,371 Due after 10 years 9,770 13,449 Total debt securities 88,761 99,619 Allowance for credit losses (61) — Total investment securities $ 88,700 $ 99,619
Schedule of Realized Gross Gains (Losses)	Gross gains and losses realized related to the sales of securities carried at fair value for the three- and nine-month periods ended September 30, 2020 and 2019, are summarized as follows, in thousands: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Proceeds from sales $ 306,383 $ 290,877 $ 818,022 $ 1,485,773 Gross security gains 1,825 2,371 8,687 10,301 Gross security losses 726 358 3,924 3,133
Schedule of Debt Securities Available-for-sale	The following table summarizes, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in Heartland's securities portfolio as of September 30, 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 September 30, 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 September 30, 2020 Mortgage and asset-backed securities $ 1,277,625 $ (14,276) 69 $ 544,573 $ (9,922) 108 $ 1,822,198 $ (24,198) 177 Obligations of states and political subdivisions 155,689 (2,655) 29 — — — 155,689 (2,655) 29 Total temporarily impaired securities $ 1,433,314 $ (16,931) 98 $ 544,573 $ (9,922) 108 $ 1,977,887 $ (26,853) 206 December 31, 2019 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
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 three- and nine months ended September 30, 2020: Obligations of states and political subdivisions Balance at June 30, 2020 $ 62 Provision for credit losses (1) Balance at September 30, 2020 $ 61 Obligations of states and political subdivisions Balance at December 31, 2019 $ — Impact of ASU 2016-13 adoption on January 1, 2020 158 Adjusted balance at January 1, 2020 158 Provision for credit losses (97) Balance at September 30, 2020 $ 61
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 September 30, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ — AA, AA+, AA- 27,465 A+, A, A- 10,451 BBB — Not Rated 50,845 Total $ 88,761 The following table shows the risk category of loans by loan category and year of origination as of September 30, 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 $ 363,812 $ 355,625 $ 181,366 $ 229,869 $ 118,285 $ 348,709 $ 480,474 $ 2,078,140 Watch 32,475 21,178 17,393 17,268 6,597 2,381 35,073 132,365 Substandard 3,996 8,303 21,543 17,789 10,748 14,478 16,284 93,141 Commercial and industrial total $ 400,283 $ 385,106 $ 220,302 $ 264,926 $ 135,630 $ 365,568 $ 531,831 $ 2,303,646 PPP Pass $ 1,063,169 $ — $ — $ — $ — $ — $ — $ 1,063,169 Watch 34,691 — — — — — — 34,691 Substandard 30,175 — — — — — — 30,175 PPP total $ 1,128,035 $ — $ — $ — $ — $ — $ — $ 1,128,035 Owner occupied commercial real estate Pass $ 226,358 $ 313,472 $ 286,767 $ 165,497 $ 111,839 $ 227,090 $ 32,287 $ 1,363,310 Watch 8,449 7,692 10,430 19,836 6,255 9,276 2,245 64,183 Substandard 8,923 6,506 14,875 12,576 9,318 14,949 262 67,409 Owner occupied commercial real estate total $ 243,730 $ 327,670 $ 312,072 $ 197,909 $ 127,412 $ 251,315 $ 34,794 $ 1,494,902 Non-owner occupied commercial real estate Pass $ 256,678 $ 411,467 $ 252,071 $ 193,575 $ 105,474 $ 253,755 $ 26,598 $ 1,499,618 Watch 14,535 9,949 14,788 20,394 7,648 18,171 475 85,960 Substandard 25,671 4,280 19,889 15,737 3,636 4,892 — 74,105 Non-owner occupied commercial real estate total $ 296,884 $ 425,696 $ 286,748 $ 229,706 $ 116,758 $ 276,818 $ 27,073 $ 1,659,683 Real estate construction Pass $ 188,216 $ 351,522 $ 235,386 $ 34,641 $ 14,609 $ 23,189 $ 16,716 $ 864,279 Watch 2,874 24,153 5,931 280 14,744 791 637 49,410 Substandard 199 2,018 353 686 394 426 — 4,076 Real estate construction total $ 191,289 $ 377,693 $ 241,670 $ 35,607 $ 29,747 $ 24,406 $ 17,353 $ 917,765 Agricultural and agricultural real estate Pass $ 86,754 $ 76,196 $ 45,596 $ 29,713 $ 15,357 $ 33,322 $ 114,403 $ 401,341 Watch 4,527 9,475 5,127 826 1,772 3,651 9,175 34,553 Substandard 14,563 4,914 18,457 6,419 3,799 12,762 11,250 72,164 Agricultural and agricultural real estate total $ 105,844 $ 90,585 $ 69,180 $ 36,958 $ 20,928 $ 49,735 $ 134,828 $ 508,058 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Residential real estate Pass $ 81,558 $ 72,198 $ 101,789 $ 78,394 $ 51,293 $ 250,936 $ 30,370 $ 666,538 Watch 81 3,462 825 1,402 338 5,844 346 12,298 Substandard 848 312 1,152 860 1,500 17,291 1,100 23,063 Residential real estate total $ 82,487 $ 75,972 $ 103,766 $ 80,656 $ 53,131 $ 274,071 $ 31,816 $ 701,899 Consumer Pass $ 24,864 $ 26,236 $ 18,451 $ 14,001 $ 3,955 $ 20,208 $ 265,699 $ 373,414 Watch 8 370 599 235 236 754 2,218 4,420 Substandard 487 696 2,234 652 762 2,152 841 7,824 Consumer total $ 25,359 $ 27,302 $ 21,284 $ 14,888 $ 4,953 $ 23,114 $ 268,758 $ 385,658 Total Pass $ 2,291,409 $ 1,606,716 $ 1,121,426 $ 745,690 $ 420,812 $ 1,157,209 $ 966,547 $ 8,309,809 Total Watch 97,640 76,279 55,093 60,241 37,590 40,868 50,169 417,880 Total Substandard 84,862 27,029 78,503 54,719 30,157 66,950 29,737 371,957 Total Loans $ 2,473,911 $ 1,710,024 $ 1,255,022 $ 860,650 $ 488,559 $ 1,265,027 $ 1,046,453 $ 9,099,646 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)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Schedule of Loans	Loans as of September 30, 2020, and December 31, 2019, were as follows, in thousands: September 30, 2020 December 31, 2019 Loans receivable held to maturity: Commercial and industrial $ 2,303,646 $ 2,530,809 Paycheck Protection Program ("PPP") 1,128,035 — Owner occupied commercial real estate 1,494,902 1,472,704 Non-owner occupied commercial real estate 1,659,683 1,495,877 Real estate construction 917,765 1,027,081 Agricultural and agricultural real estate 508,058 565,837 Residential real estate 701,899 832,277 Consumer 385,658 443,332 Total loans receivable held to maturity 9,099,646 8,367,917 Allowance for credit losses (103,377) (70,395) Loans receivable, net $ 8,996,269 $ 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 September 30, 2020, and December 31, 2019, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. As of September 30, 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 September 30, 2020 Commercial and industrial $ 5,745 $ 28,853 $ 34,598 $ 19,420 $ 2,284,226 $ 2,303,646 PPP — — — — 1,128,035 1,128,035 Owner occupied commercial real estate 263 10,966 11,229 11,833 1,483,069 1,494,902 Non-owner occupied commercial real estate — 12,127 12,127 3,644 1,656,039 1,659,683 Real estate construction 74 20,713 20,787 1,284 916,481 917,765 Agricultural and agricultural real estate 1,847 3,494 5,341 17,906 490,152 508,058 Residential real estate 135 9,536 9,671 4,661 697,238 701,899 Consumer 383 9,241 9,624 1,168 384,490 385,658 Total $ 8,447 $ 94,930 $ 103,377 $ 59,916 $ 9,039,730 $ 9,099,646 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 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 September 30, 2020, in thousands: Nonaccrual Nonaccrual Loans Total Accruing Loans September 30, 2020 Commercial and industrial $ 10,654 $ 10,732 $ 21,386 $ 431 Owner occupied commercial real estate 1,651 11,413 13,064 — Non-owner occupied commercial real estate — 3,644 3,644 — Real estate construction 751 902 1,653 — Agricultural and agricultural real estate 10,714 7,861 18,575 — Residential mortgage 8,237 8,289 16,526 1,250 Consumer 3,569 623 4,192 — Total $ 35,576 $ 43,464 $ 79,040 $ 1,681 Heartland recognized $0 of interest income on nonaccrual loans during the three- and nine months ended September 30, 2020. Heartland had $15.9 million of troubled debt restructured loans at September 30, 2020, of which $4.1 million were classified as nonaccrual and $11.8 million were accruing according to the restructured terms. Heartland had $7.6 million of troubled debt
Troubled Debt Restructuring on Loans Modified	The following tables provide information on troubled debt restructured loans that were modified during the three- and nine-month periods ended September 30, 2020, and September 30, 2019, dollars in thousands: Three Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial 1 $ 20 $ 20 — $ — $ — PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 1 9,434 9,434 — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate — — — — — — Consumer — — — — — — Total 2 $ 9,454 $ 9,454 — $ — $ — Nine Months Ended 2020 2019 Number Pre- Post- Number Pre- Post- Commercial and industrial 1 $ 20 $ 20 — $ — $ — PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 1 9,434 9,434 — — — Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Residential real estate 2 92 98 4 276 288 Consumer — — — — — — Total 4 $ 9,546 $ 9,552 4 $ 276 $ 288
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- and nine--month periods ended September 30, 2020, and September 30, 2019, that had been modified during the twelve-month period prior to default, in thousands: With Payment Defaults During the Three Months Ended September 30, 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — PPP — — — — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate — — — — Consumer — — — — Total — $ — — $ — With Payment Defaults During the Nine Months Ended September 30, 2020 2019 Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial — $ — — $ — PPP — — — — Owner occupied commercial real estate — — — — Non-owner occupied commercial real estate — — — — Real estate construction — — — — Agricultural and agricultural real estate — — — — Residential real estate 1 236 3 253 Consumer — — — — Total 1 $ 236 3 $ 253
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 September 30, 2020, which are updated quarterly and used to monitor the credit quality of the securities: Rating Obligations of states and political subdivisions AAA $ — AA, AA+, AA- 27,465 A+, A, A- 10,451 BBB — Not Rated 50,845 Total $ 88,761 The following table shows the risk category of loans by loan category and year of origination as of September 30, 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 $ 363,812 $ 355,625 $ 181,366 $ 229,869 $ 118,285 $ 348,709 $ 480,474 $ 2,078,140 Watch 32,475 21,178 17,393 17,268 6,597 2,381 35,073 132,365 Substandard 3,996 8,303 21,543 17,789 10,748 14,478 16,284 93,141 Commercial and industrial total $ 400,283 $ 385,106 $ 220,302 $ 264,926 $ 135,630 $ 365,568 $ 531,831 $ 2,303,646 PPP Pass $ 1,063,169 $ — $ — $ — $ — $ — $ — $ 1,063,169 Watch 34,691 — — — — — — 34,691 Substandard 30,175 — — — — — — 30,175 PPP total $ 1,128,035 $ — $ — $ — $ — $ — $ — $ 1,128,035 Owner occupied commercial real estate Pass $ 226,358 $ 313,472 $ 286,767 $ 165,497 $ 111,839 $ 227,090 $ 32,287 $ 1,363,310 Watch 8,449 7,692 10,430 19,836 6,255 9,276 2,245 64,183 Substandard 8,923 6,506 14,875 12,576 9,318 14,949 262 67,409 Owner occupied commercial real estate total $ 243,730 $ 327,670 $ 312,072 $ 197,909 $ 127,412 $ 251,315 $ 34,794 $ 1,494,902 Non-owner occupied commercial real estate Pass $ 256,678 $ 411,467 $ 252,071 $ 193,575 $ 105,474 $ 253,755 $ 26,598 $ 1,499,618 Watch 14,535 9,949 14,788 20,394 7,648 18,171 475 85,960 Substandard 25,671 4,280 19,889 15,737 3,636 4,892 — 74,105 Non-owner occupied commercial real estate total $ 296,884 $ 425,696 $ 286,748 $ 229,706 $ 116,758 $ 276,818 $ 27,073 $ 1,659,683 Real estate construction Pass $ 188,216 $ 351,522 $ 235,386 $ 34,641 $ 14,609 $ 23,189 $ 16,716 $ 864,279 Watch 2,874 24,153 5,931 280 14,744 791 637 49,410 Substandard 199 2,018 353 686 394 426 — 4,076 Real estate construction total $ 191,289 $ 377,693 $ 241,670 $ 35,607 $ 29,747 $ 24,406 $ 17,353 $ 917,765 Agricultural and agricultural real estate Pass $ 86,754 $ 76,196 $ 45,596 $ 29,713 $ 15,357 $ 33,322 $ 114,403 $ 401,341 Watch 4,527 9,475 5,127 826 1,772 3,651 9,175 34,553 Substandard 14,563 4,914 18,457 6,419 3,799 12,762 11,250 72,164 Agricultural and agricultural real estate total $ 105,844 $ 90,585 $ 69,180 $ 36,958 $ 20,928 $ 49,735 $ 134,828 $ 508,058 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Residential real estate Pass $ 81,558 $ 72,198 $ 101,789 $ 78,394 $ 51,293 $ 250,936 $ 30,370 $ 666,538 Watch 81 3,462 825 1,402 338 5,844 346 12,298 Substandard 848 312 1,152 860 1,500 17,291 1,100 23,063 Residential real estate total $ 82,487 $ 75,972 $ 103,766 $ 80,656 $ 53,131 $ 274,071 $ 31,816 $ 701,899 Consumer Pass $ 24,864 $ 26,236 $ 18,451 $ 14,001 $ 3,955 $ 20,208 $ 265,699 $ 373,414 Watch 8 370 599 235 236 754 2,218 4,420 Substandard 487 696 2,234 652 762 2,152 841 7,824 Consumer total $ 25,359 $ 27,302 $ 21,284 $ 14,888 $ 4,953 $ 23,114 $ 268,758 $ 385,658 Total Pass $ 2,291,409 $ 1,606,716 $ 1,121,426 $ 745,690 $ 420,812 $ 1,157,209 $ 966,547 $ 8,309,809 Total Watch 97,640 76,279 55,093 60,241 37,590 40,868 50,169 417,880 Total Substandard 84,862 27,029 78,503 54,719 30,157 66,950 29,737 371,957 Total Loans $ 2,473,911 $ 1,710,024 $ 1,255,022 $ 860,650 $ 488,559 $ 1,265,027 $ 1,046,453 $ 9,099,646 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 September 30, 2020, and December 31, 2019, in thousands: Accruing Loans 30-59 Days 60-89 Days 90 Days or Total Current Nonaccrual Total Loans September 30, 2020 Commercial and industrial $ 3,200 $ 2,293 $ 431 $ 5,924 $ 2,276,336 $ 21,386 $ 2,303,646 PPP — — — — 1,128,035 — 1,128,035 Owner occupied commercial real estate 1,052 896 — 1,948 1,479,890 13,064 1,494,902 Non-owner occupied commercial real estate 863 1,685 — 2,548 1,653,491 3,644 1,659,683 Real estate construction 310 597 — 907 915,205 1,653 917,765 Agricultural and agricultural real estate 1,308 — — 1,308 488,175 18,575 508,058 Residential real estate 1,820 86 1,250 3,156 682,217 16,526 701,899 Consumer 980 46 — 1,026 380,440 4,192 385,658 Total gross loans receivable held to maturity $ 9,533 $ 5,603 $ 1,681 $ 16,817 $ 9,003,789 $ 79,040 $ 9,099,646 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 sheet 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 sheet 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)	9 Months Ended
	Sep. 30, 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- and nine- month periods ended September 30, 2020, and September 30, 2019, were as follows, in thousands: Commercial PPP Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Real Estate Residential Consumer Total Balance at June 30, 2020 $ 32,531 $ — $ 23,402 $ 10,162 $ 28,667 $ 5,701 $ 9,304 $ 10,170 $ 119,937 Charge-offs (7,077) — (13,328) (26) — (936) (54) (332) (21,753) Recoveries 369 — — 10 2 — 2 69 452 Provision 8,775 — 1,155 1,981 (7,882) 576 419 (283) 4,741 Balance at September 30, 2020 $ 34,598 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,341 $ 9,671 $ 9,624 $ 103,377 Commercial and Industrial PPP Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential 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 3,147 — (407) (2,834) 3,413 (380) 4,817 4,315 12,071 Adjusted balance at January 1, 2020 33,934 — 7,807 4,968 15,012 5,293 6,321 9,131 82,466 Charge-offs (15,440) — (13,541) (45) (105) (1,190) (368) (929) (31,618) Recoveries 1,153 — 192 18 217 826 97 413 2,916 Provision 14,951 — 16,771 7,186 5,663 412 3,621 1,009 49,613 Balance at September 30, 2020 $ 34,598 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,341 $ 9,671 $ 9,624 $ 103,377 Commercial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Real Estate Residential Consumer Total Balance at June 30, 2019 $ 27,680 6,182 7,482 10,010 $ 5,986 $ 1,592 $ 4,918 $ 63,850 Charge-offs (2,656) (43) (21) — (1,673) (3) (446) (4,842) Recoveries 1,526 3 100 38 199 52 95 2,013 Provision 1,874 1,108 186 640 858 164 371 5,201 Balance at September 30, 2019 $ 28,424 $ 7,250 $ 7,747 $ 10,688 $ 5,370 $ 1,805 $ 4,938 $ 66,222 Commercial Owner Occupied Commercial Real Estate Non-Owner Occupied Commercial Real Estate Real Estate Construction Agricultural and Agricultural Residential 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 (7,607) (79) (21) (155) (2,100) (344) (1,266) (11,572) Recoveries 2,110 96 200 166 528 138 839 4,077 Provision 7,615 708 138 998 2,028 198 69 11,754 Balance at September 30, 2019 $ 28,424 $ 7,250 $ 7,747 $ 10,688 $ 5,370 $ 1,805 $ 4,938 $ 66,222
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Changes in the allowance for credit losses on unfunded commitments for the three- and nine months ended September 30, 2020, were as follows: Balance at June 30, 2020 $ 17,392 Provision (3,062) Balance at September 30, 2020 $ 14,330 Balance at December 31, 2019 $ 248 Impact of ASU 2016-13 adoption on January 1, 2020 13,604 Adjusted balance at January 1, 2020 13,852 Provision 478 Balance at September 30, 2020 $ 14,330

GOODWILL, CORE DEPOSIT PREMIU_2

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019, are presented in the table below, in thousands: September 30, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 96,821 $ 56,478 $ 40,343 $ 96,821 $ 48,338 $ 48,483 Customer relationship intangibles 1,177 1,000 177 1,177 972 205 Mortgage servicing rights 10,458 5,635 4,823 7,886 2,265 5,621 Commercial servicing rights 7,013 6,084 929 6,952 5,837 1,115 Total $ 115,469 $ 69,197 $ 46,272 $ 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 Three months ending December 31, 2020 $ 2,436 $ 9 $ 624 $ 69 $ 3,138 Year ending December 31, 2021 8,691 35 1,050 261 10,037 2022 7,102 34 900 232 8,268 2023 6,202 34 750 161 7,147 2024 5,108 33 600 103 5,844 2025 4,265 32 450 103 4,850 Thereafter 6,539 — 449 — 6,988 Total $ 40,343 $ 177 $ 4,823 $ 929 $ 46,272
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 September 30, 2020, and December 31, 2019: September 30, 2020 Book Value 15-Year Tranche Fair Value 15-Year Tranche Valuation Allowance Book Value 30-Year Tranche Fair Value 30-Year Tranche Valuation Allowance First Bank & Trust 1,618 1,084 534 5,850 3,739 2,111 Total $ 1,618 $ 1,084 $ 534 $ 5,850 $ 3,739 $ 2,111 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 September 30, 2020, and December 31, 2019: September 30, 2020 Book Value Fair Value Valuation Allowance Book Value Fair Value Valuation Allowance Premier Valley Bank 1 9 — 94 156 — Wisconsin Bank & Trust 117 285 — 717 1,047 — Total $ 118 $ 294 $ — $ 811 $ 1,203 $ — 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 nine months ended September 30, 2020, and September 30, 2019: 2020 2019 Balance at January 1, $ 5,621 $ 29,363 Originations 2,571 654 Amortization (1,693) (2,867) Sale of mortgage servicing rights — (20,556) Valuation allowance (1,676) (1,572) Balance at period end $ 4,823 $ 5,022 Mortgage servicing rights, net to servicing portfolio 0.68 % 0.81 %
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 nine-months ended September 30, 2020, and September 30, 2019: 2020 2019 Balance at January 1, $ 1,115 $ 1,709 Originations 62 102 Amortization (248) (555) Valuation allowance on commercial servicing rights — (7) Balance at period end $ 929 $ 1,249 Fair value of commercial servicing rights $ 1,497 $ 1,827 Commercial servicing rights, net to servicing portfolio 1.31 % 1.44 %

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2020 Embedded derivatives $ 9,308 $ 758 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- and nine--month periods ended September 30, 2020, and September 30, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended September 30, 2020 Embedded derivatives $ (69) Other noninterest income Nine Months Ended September 30, 2020 Embedded derivatives $ 293 Other noninterest income Three Months Ended September 30, 2019 Embedded derivatives $ 1,389 Other noninterest income Nine Months Ended September 30, 2019 Embedded derivatives $ 318 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 September 30, 2020, and December 31, 2019, in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2020 Interest rate lock commitments (mortgage) Other assets $ 51,579 $ 2,255 Forward commitments Other assets 24,500 27 Forward commitments Other liabilities 72,500 (352) Undesignated interest rate swaps Other liabilities 9,308 (758) 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- and nine-month periods ended September 30, 2020, and September 30, 2019, in thousands: Income Statement Category Gain (Loss) Recognized Three Months Ended September 30, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 249 Forward commitments Net gains on sale of loans held for sale (44) Undesignated interest rate swaps Other noninterest income 69 Nine Months Ended September 30, 2020 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 3,243 Forward commitments Net gains on sale of loans held for sale (228) Undesignated interest rate swaps Other noninterest income (293) Three Months Ended September 30, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ (255) Forward commitments Net gains on sale of loans held for sale 283 Undesignated interest rate swaps Other noninterest income (1,389) Nine Months Ended September 30, 2019 Interest rate lock commitments (mortgage) Net gains on sale of loans held for sale $ 561 Forward commitments Net gains on sale of loans held for sale 255 Undesignated interest rate swaps Other noninterest income (318)
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 September 30, 2020, and December 31, 2019, in thousands: Notional Fair Balance Receive Weighted Maturity September 30, 2020 Interest rate swap $ 25,000 $ (253) Other liabilities 0.246 % 2.255 % 03/17/2021 Interest rate swap 22,667 (147) Other liabilities 2.656 3.674 05/10/2021 Interest rate swap 23,500 (2,449) Other liabilities 2.651 5.425 07/24/2028 Interest rate swap 20,000 (1,592) Other liabilities 0.250 2.390 06/15/2024 Interest rate swap 20,000 (1,488) Other liabilities 0.246 2.352 03/01/2024 Interest rate swap 6,000 (74) Other liabilities 0.250 1.866 06/15/2021 Interest rate swap 3,000 (38) Other liabilities 0.275 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- and nine-month periods ended September 30, 2020, and September 30, 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 September 30, 2020 Interest rate swaps $ (604) Interest expense $ 595 Other income $ — Nine Months Ended September 30, 2020 Interest rate swaps $ (3,359) Interest expense $ 1,195 Other income $ — Three Months Ended September 30, 2019 Interest rate swaps $ (766) Interest expense $ (31) Other income $ — Nine Months Ended September 30, 2019 Interest rate swaps $ (4,269) Interest expense $ (296) 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 September 30, 2020, and December 31, 2019, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2020 Fair value hedges $ 20,946 $ (2,900) 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- and nine- month periods ended September 30, 2020, and September 30, 2019, in thousands: Amount of Gain (Loss) Income Statement Category Three Months Ended September 30, 2020 Fair value hedges $ 26 Interest income Nine Months Ended September 30, 2020 Fair value hedges $ (1,647) Interest income Three Months Ended September 30, 2019 Fair value hedges $ (263) Interest income Nine Months Ended September 30, 2019 Fair value hedges $ (1,553) 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 September 30, 2020, and December 31, 2019, in thousands: Notional Fair Balance Sheet Weighted Weighted September 30, 2020 Customer interest rate swaps $ 443,856 $ 49,629 Other assets 4.46 % 2.45 % Customer interest rate swaps 443,856 (49,629) Other liabilities 2.45 4.46 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)	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2020 Assets Securities available for sale U.S. government corporations and agencies $ 3,272 $ 2,035 $ 1,237 $ — Mortgage and asset-backed securities 3,742,508 — 3,742,508 — Obligations of states and political subdivisions 1,185,349 — 1,185,349 — Equity securities with a readily determinable fair value 19,569 — 19,569 — Derivative financial instruments (1) 50,387 — 50,387 — Interest rate lock commitments 2,255 — — 2,255 Forward commitments 27 — 27 — Total assets at fair value $ 5,003,367 $ 2,035 $ 4,999,077 $ 2,255 Liabilities Derivative financial instruments (2) $ 59,328 $ — $ 59,328 $ — Forward commitments 352 — 352 — Total liabilities at fair value $ 59,680 $ — $ 59,680 $ — 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 September 30, 2020 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 9,602 $ — $ — $ 9,602 $ 445 Owner occupied commercial real estate 5,949 — — 5,949 9,456 Non-owner occupied commercial real estate 1,035 — — 1,035 — Real estate construction 449 — — 449 — Agricultural and agricultural real estate 13,923 — — 13,923 781 Residential real estate 376 — — 376 36 Consumer 250 — — 250 — Total collateral dependent individually assessed loans $ 31,584 $ — $ — $ 31,584 $ 10,718 Loans held for sale $ 65,969 $ — $ 65,969 $ — $ (2,648) Other real estate owned 5,050 — — 5,050 1,047 Premises, furniture and equipment held for sale 567 — — 567 — Servicing rights 4,823 — — 4,823 1,676 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 $ 2,255 Discounted cash flows Closing ratio 0-99% (86%) (1) Other real estate owned 5,050 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 4,823 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 567 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial 9,602 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 5,949 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Non-owner occupied commercial real estate 1,035 Modified appraised value Third party appraisal (2) Appraisal discount 0-7% (3) Real estate construction 449 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Agricultural and agricultural real estate 13,923 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Residential real estate 376 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Consumer 250 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 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 Nine Months Ended For the Year Ended Balance at January 1, $ 681 $ 725 Total net gains included in earnings 3,243 18 Issuances 11,387 10,702 Settlements (13,056) (10,764) Balance at period end $ 2,255 $ 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 September 30, 2020 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 331,655 $ 331,665 $ 331,665 $ — $ — Time deposits in other financial institutions 3,129 3,129 3,129 — — Securities: Carried at fair value 4,950,698 4,950,698 2,035 4,948,663 — Held to maturity 88,700 99,619 — 99,619 — Other investments 35,940 35,940 — 35,940 — Loans held for sale 65,969 65,969 — 65,969 — Loans, net: Commercial and industrial 2,269,048 2,229,482 — 2,219,880 9,602 PPP 1,128,035 1,128,035 — 1,128,035 — Owner occupied commercial real estate 1,483,673 1,470,592 — 1,464,643 5,949 Non-owner occupied commercial real estate 1,647,556 1,634,341 — 1,633,306 1,035 Real estate construction 896,978 907,919 — 907,470 449 Agricultural and agricultural real estate 502,717 484,657 — 470,734 13,923 Residential real estate 692,228 690,745 — 690,369 376 Consumer 376,034 374,832 — 374,582 250 Total Loans, net 8,996,269 8,920,603 — 8,889,019 31,584 Cash surrender value on life insurance 173,111 173,111 — 173,111 — Derivative financial instruments (1) 50,387 50,387 — 50,387 — Interest rate lock commitments 2,255 2,255 — — 2,255 Forward commitments 27 27 — 27 — Financial liabilities: Deposits Demand deposits 5,022,567 5,022,567 — 5,022,567 — Savings deposits 6,742,151 6,742,151 — 6,742,151 — Time deposits 1,002,392 1,002,392 — 1,002,392 — Short term borrowings 306,706 306,706 — 306,706 — Other borrowings 524,045 525,388 — 525,388 — Derivative financial instruments (2) 59,328 59,328 — 59,328 — Forward commitments 352 352 — 352 — (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)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2020, and 2019, in thousands: Three Months Ended Nine Months Ended 2020 2019 2020 2019 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 3,710 $ 3,221 $ 10,623 $ 9,383 Overdraft fees 2,184 2,917 6,627 8,537 Customer service and other service fees 39 104 133 270 Credit card fee income 3,894 3,936 11,861 11,555 Debit card income 1,922 2,188 5,498 10,044 Total service charges and fees 11,749 12,366 34,742 39,789 Trust fees 5,357 4,959 15,356 14,258 Brokerage and insurance commissions 649 962 1,977 2,724 Total noninterest income in-scope of Topic 606 17,755 18,287 52,075 56,771 Out-of-scope of Topic 606 Loan servicing income $ 638 $ 821 $ 1,980 $ 3,888 Securities gains, net 1,300 2,013 4,964 7,168 Unrealized gain on equity securities, net 155 144 604 514 Net gains on sale of loans held for sale 8,894 4,673 21,411 12,192 Valuation adjustment on servicing rights (120) (626) (1,676) (1,579) Income on bank owned life insurance 868 881 2,533 2,668 Other noninterest income 1,726 3,207 5,779 6,556 Total noninterest income out-of-scope of Topic 606 13,461 11,113 35,595 31,407 Total noninterest income $ 31,216 $ 29,400 $ 87,670 $ 88,178

STOCK COMPENSATION (Tables)

STOCK COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Status of RSUs	A summary of the RSUs outstanding as of September 30, 2020, and 2019, and changes during the nine months ended September 30, 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 220,688 31.95 157,583 45.00 Vested (119,325) 44.49 (142,023) 38.93 Forfeited (15,674) 47.13 (26,136) 48.95 Outstanding at September 30, 340,072 $ 38.37 256,419 $ 46.96

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of ROU Assets and Lease Liabilities	The table below presents Heartland's ROU assets and lease liabilities as of September 30, 2020 and December 31, 2019, in thousands: Classification September 30, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $ 19,963 $ 23,200 Operating lease liabilities Accrued expenses and other liabilities $ 21,949 $ 24,617
Schedule of Lease Costs and Supplemental Information	The table below presents the lease costs and supplemental information as of September 30, 2020 and 2019, in thousands: Three Months Ended Nine Months Ended Income Statement Category 2020 2019 2020 2019 Lease Cost Operating lease cost Occupancy expense $ 1,359 $ 1,681 $ 3,998 $ 4,548 Variable lease cost Occupancy expense 14 42 46 109 Total lease cost $ 1,373 $ 1,723 $ 4,044 $ 4,657 Supplemental Information Noncash reduction of ROU assets arising from lease modifications and terminations Occupancy expense $ 692 $ 495 $ 1,067 $ 2,959 Noncash reduction of lease liabilities arising from lease modifications and terminations Occupancy expense 3 284 389 2,771 Supplemental balance sheet information As of September 30, 2020 Weighted-average remaining operating lease term (in years) 6.50 Weighted-average discount rate for operating leases 2.97 %
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 September 30, 2020 are as follows, in thousands: Three months ending December 31, 2020 $ 1,422 Year ending December 31, 2021 5,406 2022 4,183 2023 2,850 2024 2,140 Thereafter 8,160 Total lease payments 24,161 Less interest (2,212) Present value of lease liabilities $ 21,949

BASIS OF PRESENTATION (Earnings

BASIS OF PRESENTATION (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share
Net income	$ 47,958	$ 34,612	$ 98,129	$ 111,278
Preferred dividends	2,437	0	2,437	0
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 45,521	$ 34,612	$ 95,692	$ 111,278
Weighted average common shares outstanding for basic earnings per share (in shares)	36,941	36,692	36,882	35,675
Assumed incremental common shares issued upon vesting of outstanding restricted stock units (in shares)	54	143	74	143
Weighted average common shares for diluted earnings per share (in shares)	36,995	36,835	36,956	35,818
Earnings per common share — basic (in dollars per share)	$ 1.23	$ 0.94	$ 2.59	$ 3.12
Earnings per common share — diluted (in dollars per share)	$ 1.23	$ 0.94	$ 2.59	$ 3.11
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation (in shares)	41	8	0	8

BASIS OF PRESENTATION (Narrativ

BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	$ 103,377	$ 66,222	$ 103,377	$ 66,222	$ 70,395	$ 119,937	$ 63,850	$ 61,963
Retained earnings	761,211		761,211		702,502
Income tax expense (benefit)	13,681	$ 7,941	27,007	$ 29,835
Off-balance, credit loss liability	14,330		14,330		248	$ 17,392
Impact of ASU 2016-13 adoption on January 1, 2020	$ 61		$ 61		$ 0
Threshold period past due, nonperforming status of loans and leases			90 days		90 days
Cumulative Effect, Period of Adoption, Adjustment
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
Impact of ASU 2016-13 adoption on January 1, 2020					158
Cumulative Effect, Period of Adoption, Adjustment | Held-to-maturity Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					118
Income tax expense (benefit)					40
Cumulative Effect, Period of Adoption, Adjustment | 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
Cumulative Effect, Period of Adoption, Adjustment | Loans | Financial Asset Acquired with Credit Deterioration
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss					6,000
Cumulative Effect, Period of Adoption, Adjustment | 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	Sep. 30, 2020	Jun. 09, 2020	Feb. 11, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Deposits acquired			$ 12,767,110			$ 11,044,331
Number of shares issued In exchange per share (in shares)					$ 207
Assets acquired			15,612,664			$ 13,209,597
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
Blue Valley Ban Corp. | Trust Preferred Securities Subject to Mandatory Redemption
Business Acquisition [Line Items]
Trust preferred securities assumed		16,100
Johnson Bank Branches
Business Acquisition [Line Items]
Deposits acquired				$ 392,200
Gross loans held to maturity				$ 183,800
AIM Bancshares, Inc.
Business Acquisition [Line Items]
Deposits acquired			1,600,000
Gross loans held to maturity			1,140,000
Assets acquired			$ 1,850,000
Rockford Bank And Trust Company
Business Acquisition [Line Items]
Deposits acquired	$ 430,300
Gross loans held to maturity	354,000
Assets acquired	495,700
Purchase price in cash	$ 46,600
Blue Valley Ban Corp.
Business Acquisition [Line Items]
Deposits acquired		617,100
Gross loans held to maturity		542,000
Assets acquired		$ 766,200

SECURITIES (Securities availabl

SECURITIES (Securities available for sale) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gains	$ 108,020	$ 29,765
Gross Unrealized Losses	(26,853)	(28,402)
Equity securities with a readily determinable fair value	19,569	18,435
Amortized, Total	4,869,531	3,311,433
Estimated Fair Value, Total	4,950,698	3,312,796
Total debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,849,962	3,292,998
Gross Unrealized Gains	108,020	29,765
Gross Unrealized Losses	(26,853)	(28,402)
Securities available for sale	4,931,129	3,294,361
U.S. government corporations and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,185	9,844
Gross Unrealized Gains	87	49
Gross Unrealized Losses	0	0
Securities available for sale	3,272	9,893
Mortgage and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,719,747	2,579,081
Gross Unrealized Gains	46,959	17,200
Gross Unrealized Losses	(24,198)	(19,003)
Securities available for sale	3,742,508	2,577,278
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,127,030	704,073
Gross Unrealized Gains	60,974	12,516
Gross Unrealized Losses	(2,655)	(9,399)
Securities available for sale	$ 1,185,349	$ 707,190

SECURITIES (Held to maturity se

SECURITIES (Held to maturity securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 88,761		$ 91,324
Gross Unrealized Gains	10,858		9,160
Gross Unrealized Losses	0		0
Estimated Fair Value	99,619		100,484
Allowance for Credit Losses	(61)		0
Obligations of states and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	88,761		91,324
Gross Unrealized Gains	10,858		9,160
Gross Unrealized Losses	0		0
Estimated Fair Value	99,619		100,484
Allowance for Credit Losses	$ (61)	$ (62)	$ 0

SECURITIES (Securities availa_2

SECURITIES (Securities available for sale debt maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due in 1 year or less	$ 6,756
Due in 1 to 5 years	25,556
Due in 5 to 10 years	68,084
Due after 10 years	1,029,819
Total debt securities	1,130,215
Mortgage and asset-backed securities	3,719,747
Equity securities with a readily determinable fair value	19,569	$ 18,435
Total investment securities	4,869,531
Estimated Fair Value
Due in 1 year or less	6,784
Due in 1 to 5 years	26,229
Due in 5 to 10 years	72,131
Due after 10 years	1,083,477
Total debt securities	1,188,621
Mortgage and asset-backed securities	3,742,508
Equity securities with a readily determinable fair value	19,569
Total investment securities	$ 4,950,698

SECURITIES (Securities held to

SECURITIES (Securities held to maturity debt maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due in 1 year or less	$ 930
Due in 1 to 5 years	18,694
Due in 5 to 10 years	59,367
Due after 10 years	9,770
Amortized Cost	88,761	$ 91,324
Allowance for credit losses	(61)
Total investment securities	88,700	91,324
Estimated Fair Value
Due in 1 year or less	944
Due in 1 to 5 years	19,855
Due in 5 to 10 years	65,371
Due after 10 years	13,449
Estimated Fair Value	99,619	$ 100,484
Allowance for credit losses	0
Total investment securities	$ 99,619

SECURITIES (Narrative) (Details

SECURITIES (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Accrued interest receivable	$ 14,700,000
Fair value of securities pledged	1,910,000,000	$ 509,600,000
Securities held to maturity with unrealized losses	0	0
Amortized cost of FHLBs	20,900,000	16,800,000
Securities held to maturity	88,761,000	$ 91,324,000
Carrying value of held to maturity securities	855,000
Gross gain on held to maturity securities	$ 201,000

SECURITIES (Gross realized gain

SECURITIES (Gross realized gain (loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 306,383	$ 290,877	$ 818,022	$ 1,485,773
Gross security gains	1,825	2,371	8,687	10,301
Gross security losses	$ 726	$ 358	$ 3,924	$ 3,133

SECURITIES (Debt securities ava

SECURITIES (Debt securities available for sale) (Details) $ in Thousands	Sep. 30, 2020USD ($)numberOfBankLocations	Dec. 31, 2019USD ($)numberOfBankLocations
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 1,433,314	$ 1,619,266
Unrealized Losses, Less than 12 months	$ (16,931)	$ (23,588)
Count, Less than 12 months | numberOfBankLocations	98	200
Fair Value, 12 months or longer	$ 544,573	$ 241,232
Unrealized Losses, 12 months or longer	$ (9,922)	$ (4,814)
Count, 12 months or longer | numberOfBankLocations	108	58
Fair Value, Total	$ 1,977,887	$ 1,860,498
Unrealized Losses, Total	$ (26,853)	$ (28,402)
Count, Total | numberOfBankLocations	206	258
Mortgage and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 1,277,625	$ 1,231,732
Unrealized Losses, Less than 12 months	$ (14,276)	$ (14,189)
Count, Less than 12 months | numberOfBankLocations	69	150
Fair Value, 12 months or longer	$ 544,573	$ 241,232
Unrealized Losses, 12 months or longer	$ (9,922)	$ (4,814)
Count, 12 months or longer | numberOfBankLocations	108	58
Fair Value, Total	$ 1,822,198	$ 1,472,964
Unrealized Losses, Total	$ (24,198)	$ (19,003)
Count, Total | numberOfBankLocations	177	208
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 months	$ 155,689	$ 387,534
Unrealized Losses, Less than 12 months	$ (2,655)	$ (9,399)
Count, Less than 12 months | numberOfBankLocations	29	50
Fair Value, 12 months or longer	$ 0	$ 0
Unrealized Losses, 12 months or longer	$ 0	$ 0
Count, 12 months or longer | numberOfBankLocations	0	0
Fair Value, Total	$ 155,689	$ 387,534
Unrealized Losses, Total	$ (2,655)	$ (9,399)
Count, Total | numberOfBankLocations	29	50

SECURITIES (Schedule of allowan

SECURITIES (Schedule of allowance for credit loss for securities held to maturity) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ 0
Impact of ASU 2016-13 adoption on January 1, 2020	$ 61	0
Ending balance	61	61
Cumulative Effect, Period of Adoption, Adjustment
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance		158
Impact of ASU 2016-13 adoption on January 1, 2020		158
Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	62	0
Impact of ASU 2016-13 adoption on January 1, 2020	62	0
Provision for credit losses	(1)	(97)
Ending balance	$ 61	61
Obligations of states and political subdivisions | Cumulative Effect, Period of Adoption, Adjustment
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance		158
Impact of ASU 2016-13 adoption on January 1, 2020		158
Obligations of states and political subdivisions | Cumulative Effect, Period of Adoption, Adjusted Balance
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance		158
Impact of ASU 2016-13 adoption on January 1, 2020		$ 158

SECURITIES (Schedule of financi

SECURITIES (Schedule of financing receivable credit quality indicators) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 88,761	$ 91,324
Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	88,761	$ 91,324
Standard & Poor's, AAA Rating | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0
Standard & Poor's, AA, AA+, AA- | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	27,465
Standard & Poor's, A+, A, A- Rating | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	10,451
Standard & Poor's, BBB Rating | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0
Standard & Poor's, Not Rated | Obligations of states and political subdivisions
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 50,845

LOANS (Loans receivable) (Detai

LOANS (Loans receivable) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans and Leases [Line Items]
Loans receivable	$ 9,099,646		$ 8,367,917
Allowance for credit losses	(103,377)	$ (119,937)	(70,395)	$ (66,222)	$ (63,850)	$ (61,963)
Loans receivable, net	8,996,269		8,297,522
Accrued interest receivable	38,000
Commercial and industrial | Commercial and industrial
Loans and Leases [Line Items]
Loans receivable	2,303,646		2,530,809
Allowance for credit losses	(34,598)	(32,531)	(30,787)	(28,424)	(27,680)	(26,306)
Commercial and industrial | Paycheck Protection Program ("PPP")
Loans and Leases [Line Items]
Loans receivable	1,128,035		0
Allowance for credit losses	0	0	0
Commercial and industrial | Owner occupied commercial real estate
Loans and Leases [Line Items]
Loans receivable	1,494,902		1,472,704
Allowance for credit losses	(11,229)	(23,402)	(8,214)	(7,250)	(6,182)	(6,525)
Commercial and industrial | Non-owner occupied commercial real estate
Loans and Leases [Line Items]
Loans receivable	1,659,683		1,495,877
Allowance for credit losses	(12,127)	(10,162)	(7,802)	(7,747)	(7,482)	(7,430)
Commercial and industrial | Real estate construction
Loans and Leases [Line Items]
Loans receivable	917,765		1,027,081
Allowance for credit losses	(20,787)	(28,667)	(11,599)	(10,688)	(10,010)	(9,679)
Agricultural and agricultural real estate
Loans and Leases [Line Items]
Loans receivable	508,058		565,837
Allowance for credit losses	(5,341)	(5,701)	(5,673)	(5,370)	(5,986)	(4,914)
Residential real estate
Loans and Leases [Line Items]
Loans receivable	701,899		832,277
Allowance for credit losses	(9,671)	(9,304)	(1,504)	(1,805)	(1,592)	(1,813)
Consumer
Loans and Leases [Line Items]
Loans receivable	385,658		443,332
Allowance for credit losses	$ (9,624)	$ (10,170)	$ (4,816)	$ (4,938)	$ (4,918)	$ (5,296)

LOANS (Allowance for credit los

LOANS (Allowance for credit losses on financing receivables) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	$ 8,447		$ 8,171
Collectively Evaluated for Credit Losses	94,930		62,224
Total	103,377	$ 119,937	70,395	$ 66,222	$ 63,850	$ 61,963
Loans Individually Evaluated for Credit Losses	59,916		87,052
Loans Collectively Evaluated for Credit Losses	9,039,730		8,280,865
Total	9,099,646		8,367,917
Commercial and industrial | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	5,745		6,276
Collectively Evaluated for Credit Losses	28,853		24,511
Total	34,598	32,531	30,787	28,424	27,680	26,306
Loans Individually Evaluated for Credit Losses	19,420		31,814
Loans Collectively Evaluated for Credit Losses	2,284,226		2,498,995
Total	2,303,646		2,530,809
Commercial and industrial | Paycheck Protection Program ("PPP")
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	0
Collectively Evaluated for Credit Losses	0
Total	0	0	0
Loans Individually Evaluated for Credit Losses	0
Loans Collectively Evaluated for Credit Losses	1,128,035
Total	1,128,035		0
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	263		351
Collectively Evaluated for Credit Losses	10,966		7,863
Total	11,229	23,402	8,214	7,250	6,182	6,525
Loans Individually Evaluated for Credit Losses	11,833		9,468
Loans Collectively Evaluated for Credit Losses	1,483,069		1,463,236
Total	1,494,902		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	0		33
Collectively Evaluated for Credit Losses	12,127		7,769
Total	12,127	10,162	7,802	7,747	7,482	7,430
Loans Individually Evaluated for Credit Losses	3,644		1,730
Loans Collectively Evaluated for Credit Losses	1,656,039		1,494,147
Total	1,659,683		1,495,877
Commercial and industrial | Real estate construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	74		0
Collectively Evaluated for Credit Losses	20,713		11,599
Total	20,787	28,667	11,599	10,688	10,010	9,679
Loans Individually Evaluated for Credit Losses	1,284		685
Loans Collectively Evaluated for Credit Losses	916,481		1,026,396
Total	917,765		1,027,081
Agricultural and agricultural real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	1,847		916
Collectively Evaluated for Credit Losses	3,494		4,757
Total	5,341	5,701	5,673	5,370	5,986	4,914
Loans Individually Evaluated for Credit Losses	17,906		18,554
Loans Collectively Evaluated for Credit Losses	490,152		547,283
Total	508,058		565,837
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	135		176
Collectively Evaluated for Credit Losses	9,536		1,328
Total	9,671	9,304	1,504	1,805	1,592	1,813
Loans Individually Evaluated for Credit Losses	4,661		20,678
Loans Collectively Evaluated for Credit Losses	697,238		811,599
Total	701,899		832,277
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Credit Losses	383		419
Collectively Evaluated for Credit Losses	9,241		4,397
Total	9,624	$ 10,170	4,816	$ 4,938	$ 4,918	$ 5,296
Loans Individually Evaluated for Credit Losses	1,168		4,123
Loans Collectively Evaluated for Credit Losses	384,490		439,209
Total	$ 385,658		$ 443,332

LOANS (Financing receivables, n

LOANS (Financing receivables, non accrual status) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	$ 35,576
Nonaccrual Loans with No Allowance for Credit Losses	43,464
Total Nonaccrual Loans	79,040	$ 76,548
Accruing Loans Past Due 90+ Days	1,681
Commercial and industrial | Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	10,654
Nonaccrual Loans with No Allowance for Credit Losses	10,732
Total Nonaccrual Loans	21,386	29,775
Accruing Loans Past Due 90+ Days	431
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	1,651
Nonaccrual Loans with No Allowance for Credit Losses	11,413
Total Nonaccrual Loans	13,064	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	0
Nonaccrual Loans with No Allowance for Credit Losses	3,644
Total Nonaccrual Loans	3,644	1,563
Accruing Loans Past Due 90+ Days	0
Commercial and industrial | Real Estate Construction
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	751
Nonaccrual Loans with No Allowance for Credit Losses	902
Total Nonaccrual Loans	1,653	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	10,714
Nonaccrual Loans with No Allowance for Credit Losses	7,861
Total Nonaccrual Loans	18,575	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	8,237
Nonaccrual Loans with No Allowance for Credit Losses	8,289
Total Nonaccrual Loans	16,526	13,067
Accruing Loans Past Due 90+ Days	1,250
Consumer
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Loans with an Allowance for Credit Losses	3,569
Nonaccrual Loans with No Allowance for Credit Losses	623
Total Nonaccrual Loans	4,192	$ 3,495
Accruing Loans Past Due 90+ Days	$ 0

LOANS (Financing receivables,_2

LOANS (Financing receivables, non accrual status narrative) (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Nonaccrual [Line Items]
Interest income on nonaccrual loans	$ 0	$ 0
Troubled debt restructured loans	15,900,000	15,900,000	$ 7,600,000
Nonperforming Financial Instruments [Member]
Financing Receivable, Nonaccrual [Line Items]
Troubled debt restructured loans	4,100,000	4,100,000	3,800,000
Performing Financial Instruments [Member]
Financing Receivable, Nonaccrual [Line Items]
Troubled debt restructured loans	$ 11,800,000	$ 11,800,000	$ 3,800,000

LOANS (Troubled debt restructur

LOANS (Troubled debt restructuring) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	2	0	4	4
Pre- Modification Recorded Investment	$ 9,454	$ 0	$ 9,546	$ 276
Post- Modification Recorded Investment	$ 9,454	$ 0	$ 9,552	$ 288
With Payment Defaults
Number of Loans | loan	0	0	1	3
Recorded Investment	$ 0	$ 0	$ 236	$ 253
Total Past Due	16,817		16,817			$ 31,928
Current	9,003,789		9,003,789			8,259,441
Nonaccrual	79,040		79,040			76,548
Loans receivable	9,099,646		9,099,646			8,367,917
Allowance for credit loss	103,377	66,222	103,377	66,222	$ 119,937	70,395	$ 63,850	$ 61,963
Charge-offs	(21,753)	(4,842)	(31,618)	(11,572)
Recoveries	452	2,013	2,916	4,077
Provision for Loan and Lease Losses			49,994	11,754
Provision	4,741	$ 5,201	49,613	$ 11,754
Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						12,071
30-59 Days Past Due
With Payment Defaults
Total Past Due	9,533		9,533			25,322
60-89 Days Past Due
With Payment Defaults
Total Past Due	5,603		5,603			2,501
90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 1,681		$ 1,681			4,105
Commercial and industrial | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	1	0	1	0
Pre- Modification Recorded Investment	$ 20	$ 0	$ 20	$ 0
Post- Modification Recorded Investment	$ 20	$ 0	$ 20	$ 0
With Payment Defaults
Number of Loans | loan	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0
Total Past Due	5,924		5,924			9,924
Current	2,276,336		2,276,336			2,491,110
Nonaccrual	21,386		21,386			29,775
Loans receivable	2,303,646		2,303,646			2,530,809
Allowance for credit loss	34,598	28,424	34,598	28,424	32,531	30,787	27,680	26,306
Charge-offs	(7,077)	(2,656)	(15,440)	(7,607)
Recoveries	369	1,526	1,153	2,110
Provision	8,775	$ 1,874	14,951	$ 7,615
Commercial and industrial | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						3,147
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due
With Payment Defaults
Total Past Due	3,200		3,200			5,121
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due
With Payment Defaults
Total Past Due	2,293		2,293			904
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 431		$ 431			3,899
Commercial and industrial | Paycheck Protection Program ("PPP")
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	0	0
Pre- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0
Total Past Due	0		0
Current	1,128,035		1,128,035
Nonaccrual	0		0
Loans receivable	1,128,035		1,128,035			0
Allowance for credit loss	0		0		0	0
Charge-offs	0		0
Recoveries	0		0
Provision	0		0
Commercial and industrial | Paycheck Protection Program ("PPP") | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						0
Commercial and industrial | Paycheck Protection Program ("PPP") | 30-59 Days Past Due
With Payment Defaults
Total Past Due	0		0
Commercial and industrial | Paycheck Protection Program ("PPP") | 60-89 Days Past Due
With Payment Defaults
Total Past Due	0		0
Commercial and industrial | Paycheck Protection Program ("PPP") | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	0	0
Pre- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post- Modification Recorded Investment	0	0	$ 0	$ 0
With Payment Defaults
Number of Loans | loan			0	0
Recorded Investment			$ 0	$ 0
Total Past Due	1,948		1,948			4,177
Current	1,479,890		1,479,890			1,461,589
Nonaccrual	13,064		13,064			6,938
Loans receivable	1,494,902		1,494,902			1,472,704
Allowance for credit loss	11,229	7,250	11,229	7,250	23,402	8,214	6,182	6,525
Charge-offs	(13,328)	(43)	(13,541)	(79)
Recoveries	0	3	192	96
Provision	1,155	$ 1,108	16,771	$ 708
Commercial and industrial | Owner occupied commercial real estate | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						(407)
Commercial and industrial | Owner occupied commercial real estate | 30-59 Days Past Due
With Payment Defaults
Total Past Due	1,052		1,052			3,487
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due
With Payment Defaults
Total Past Due	896		896			690
Commercial and industrial | Owner occupied commercial real estate | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0			0
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	1	0	1	0
Pre- Modification Recorded Investment	$ 9,434	$ 0	$ 9,434	$ 0
Post- Modification Recorded Investment	9,434	0	$ 9,434	$ 0
With Payment Defaults
Number of Loans | loan			0	0
Recorded Investment			$ 0	$ 0
Total Past Due	2,548		2,548			695
Current	1,653,491		1,653,491			1,493,619
Nonaccrual	3,644		3,644			1,563
Loans receivable	1,659,683		1,659,683			1,495,877
Allowance for credit loss	12,127	7,747	12,127	7,747	10,162	7,802	7,482	7,430
Charge-offs	(26)	(21)	(45)	(21)
Recoveries	10	100	18	200
Provision	1,981	$ 186	7,186	$ 138
Commercial and industrial | Non-owner occupied commercial real estate | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						(2,834)
Commercial and industrial | Non-owner occupied commercial real estate | 30-59 Days Past Due
With Payment Defaults
Total Past Due	863		863			614
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due
With Payment Defaults
Total Past Due	1,685		1,685			81
Commercial and industrial | Non-owner occupied commercial real estate | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0			0
Commercial and industrial | Real estate construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	0	0
Pre- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0
Total Past Due	907		907			5,761
Current	915,205		915,205			1,020,153
Nonaccrual	1,653		1,653			1,167
Loans receivable	917,765		917,765			1,027,081
Allowance for credit loss	20,787	10,688	20,787	10,688	28,667	11,599	10,010	9,679
Charge-offs	0	0	(105)	(155)
Recoveries	2	38	217	166
Provision	(7,882)	$ 640	5,663	$ 998
Commercial and industrial | Real estate construction | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						3,413
Commercial and industrial | Real estate construction | 30-59 Days Past Due
With Payment Defaults
Total Past Due	310		310			5,689
Commercial and industrial | Real estate construction | 60-89 Days Past Due
With Payment Defaults
Total Past Due	597		597			72
Commercial and industrial | Real estate construction | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0			0
Agricultural and agricultural real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	0	0
Pre- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0
Total Past Due	1,308		1,308			3,839
Current	488,175		488,175			541,455
Nonaccrual	18,575		18,575			20,543
Loans receivable	508,058		508,058			565,837
Allowance for credit loss	5,341	5,370	5,341	5,370	5,701	5,673	5,986	4,914
Charge-offs	(936)	(1,673)	(1,190)	(2,100)
Recoveries	0	199	826	528
Provision	576	$ 858	412	$ 2,028
Agricultural and agricultural real estate | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						(380)
Agricultural and agricultural real estate | 30-59 Days Past Due
With Payment Defaults
Total Past Due	1,308		1,308			3,734
Agricultural and agricultural real estate | 60-89 Days Past Due
With Payment Defaults
Total Past Due	0		0			79
Agricultural and agricultural real estate | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0			26
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	2	4
Pre- Modification Recorded Investment	$ 0	$ 0	$ 92	$ 276
Post- Modification Recorded Investment	$ 0	$ 0	$ 98	$ 288
With Payment Defaults
Number of Loans | loan	0	0	1	3
Recorded Investment	$ 0	$ 0	$ 236	$ 253
Total Past Due	3,156		3,156			4,370
Current	682,217		682,217			814,840
Nonaccrual	16,526		16,526			13,067
Loans receivable	701,899		701,899			832,277
Allowance for credit loss	9,671	1,805	9,671	1,805	9,304	1,504	1,592	1,813
Charge-offs	(54)	(3)	(368)	(344)
Recoveries	2	52	97	138
Provision	419	$ 164	3,621	$ 198
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						4,817
Residential real estate | 30-59 Days Past Due
With Payment Defaults
Total Past Due	1,820		1,820			4,166
Residential real estate | 60-89 Days Past Due
With Payment Defaults
Total Past Due	86		86			24
Residential real estate | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 1,250		$ 1,250			180
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan	0	0	0	0
Pre- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post- Modification Recorded Investment	$ 0	$ 0	$ 0	$ 0
With Payment Defaults
Number of Loans | loan	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0
Total Past Due	1,026		1,026			3,162
Current	380,440		380,440			436,675
Nonaccrual	4,192		4,192			3,495
Loans receivable	385,658		385,658			443,332
Allowance for credit loss	9,624	4,938	9,624	4,938	$ 10,170	4,816	$ 4,918	$ 5,296
Charge-offs	(332)	(446)	(929)	(1,266)
Recoveries	69	95	413	839
Provision	(283)	$ 371	1,009	$ 69
Consumer | Cumulative Effect, Period of Adoption, Adjustment
With Payment Defaults
Allowance for credit loss						4,315
Consumer | 30-59 Days Past Due
With Payment Defaults
Total Past Due	980		980			2,511
Consumer | 60-89 Days Past Due
With Payment Defaults
Total Past Due	46		46			651
Consumer | 90 Days or More Past Due
With Payment Defaults
Total Past Due	$ 0		$ 0			$ 0

LOANS (Troubled debt narrative)

LOANS (Troubled debt narrative) (Details) - loan	Sep. 30, 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	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 2,473,911
2019	1,710,024
2018	1,255,022
2017	860,650
2016	488,559
2015 and Prior	1,265,027
Revolving	1,046,453
Total	9,099,646	$ 8,367,917
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2,291,409
2019	1,606,716
2018	1,121,426
2017	745,690
2016	420,812
2015 and Prior	1,157,209
Revolving	966,547
Total	8,309,809	7,811,148
Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		556,769
Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	97,640
2019	76,279
2018	55,093
2017	60,241
2016	37,590
2015 and Prior	40,868
Revolving	50,169
Total	417,880
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	84,862
2019	27,029
2018	78,503
2017	54,719
2016	30,157
2015 and Prior	66,950
Revolving	29,737
Total	371,957
Paycheck Protection Program ("PPP") | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total	64,900
Commercial and industrial | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2020	400,283
2019	385,106
2018	220,302
2017	264,926
2016	135,630
2015 and Prior	365,568
Revolving	531,831
Total	2,303,646	2,530,809
Commercial and industrial | Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	363,812
2019	355,625
2018	181,366
2017	229,869
2016	118,285
2015 and Prior	348,709
Revolving	480,474
Total	2,078,140	2,352,131
Commercial and industrial | Commercial and industrial | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		178,678
Commercial and industrial | Commercial and industrial | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	32,475
2019	21,178
2018	17,393
2017	17,268
2016	6,597
2015 and Prior	2,381
Revolving	35,073
Total	132,365
Commercial and industrial | Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	3,996
2019	8,303
2018	21,543
2017	17,789
2016	10,748
2015 and Prior	14,478
Revolving	16,284
Total	93,141
Commercial and industrial | Paycheck Protection Program ("PPP")
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,128,035
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving	0
Total	1,128,035	0
Commercial and industrial | Paycheck Protection Program ("PPP") | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	1,063,169
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving	0
Total	1,063,169
Commercial and industrial | Paycheck Protection Program ("PPP") | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	34,691
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving	0
Total	34,691
Commercial and industrial | Paycheck Protection Program ("PPP") | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	30,175
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving	0
Total	30,175
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	243,730
2019	327,670
2018	312,072
2017	197,909
2016	127,412
2015 and Prior	251,315
Revolving	34,794
Total	1,494,902	1,472,704
Commercial and industrial | Owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	226,358
2019	313,472
2018	286,767
2017	165,497
2016	111,839
2015 and Prior	227,090
Revolving	32,287
Total	1,363,310	1,369,290
Commercial and industrial | Owner occupied commercial real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		103,414
Commercial and industrial | Owner occupied commercial real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8,449
2019	7,692
2018	10,430
2017	19,836
2016	6,255
2015 and Prior	9,276
Revolving	2,245
Total	64,183
Commercial and industrial | Owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8,923
2019	6,506
2018	14,875
2017	12,576
2016	9,318
2015 and Prior	14,949
Revolving	262
Total	67,409
Commercial and industrial | Non-owner occupied commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	296,884
2019	425,696
2018	286,748
2017	229,706
2016	116,758
2015 and Prior	276,818
Revolving	27,073
Total	1,659,683	1,495,877
Commercial and industrial | Non-owner occupied commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	256,678
2019	411,467
2018	252,071
2017	193,575
2016	105,474
2015 and Prior	253,755
Revolving	26,598
Total	1,499,618	1,429,760
Commercial and industrial | Non-owner occupied commercial real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		66,117
Commercial and industrial | Non-owner occupied commercial real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	14,535
2019	9,949
2018	14,788
2017	20,394
2016	7,648
2015 and Prior	18,171
Revolving	475
Total	85,960
Commercial and industrial | Non-owner occupied commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	25,671
2019	4,280
2018	19,889
2017	15,737
2016	3,636
2015 and Prior	4,892
Revolving	0
Total	74,105
Commercial and industrial | Real estate construction
Financing Receivable, Credit Quality Indicator [Line Items]
2020	191,289
2019	377,693
2018	241,670
2017	35,607
2016	29,747
2015 and Prior	24,406
Revolving	17,353
Total	917,765	1,027,081
Commercial and industrial | Real estate construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	188,216
2019	351,522
2018	235,386
2017	34,641
2016	14,609
2015 and Prior	23,189
Revolving	16,716
Total	864,279	984,736
Commercial and industrial | Real estate construction | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		42,345
Commercial and industrial | Real estate construction | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	2,874
2019	24,153
2018	5,931
2017	280
2016	14,744
2015 and Prior	791
Revolving	637
Total	49,410
Commercial and industrial | Real estate construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	199
2019	2,018
2018	353
2017	686
2016	394
2015 and Prior	426
Revolving	0
Total	4,076
Agricultural and agricultural real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	105,844
2019	90,585
2018	69,180
2017	36,958
2016	20,928
2015 and Prior	49,735
Revolving	134,828
Total	508,058	565,837
Agricultural and agricultural real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	86,754
2019	76,196
2018	45,596
2017	29,713
2016	15,357
2015 and Prior	33,322
Revolving	114,403
Total	401,341	454,272
Agricultural and agricultural real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		111,565
Agricultural and agricultural real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	4,527
2019	9,475
2018	5,127
2017	826
2016	1,772
2015 and Prior	3,651
Revolving	9,175
Total	34,553
Agricultural and agricultural real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	14,563
2019	4,914
2018	18,457
2017	6,419
2016	3,799
2015 and Prior	12,762
Revolving	11,250
Total	72,164
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2020	82,487
2019	75,972
2018	103,766
2017	80,656
2016	53,131
2015 and Prior	274,071
Revolving	31,816
Total	701,899	832,277
Residential real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	81,558
2019	72,198
2018	101,789
2017	78,394
2016	51,293
2015 and Prior	250,936
Revolving	30,370
Total	666,538	790,226
Residential real estate | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		42,051
Residential real estate | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	81
2019	3,462
2018	825
2017	1,402
2016	338
2015 and Prior	5,844
Revolving	346
Total	12,298
Residential real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	848
2019	312
2018	1,152
2017	860
2016	1,500
2015 and Prior	17,291
Revolving	1,100
Total	23,063
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2020	25,359
2019	27,302
2018	21,284
2017	14,888
2016	4,953
2015 and Prior	23,114
Revolving	268,758
Total	385,658	443,332
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2020	24,864
2019	26,236
2018	18,451
2017	14,001
2016	3,955
2015 and Prior	20,208
Revolving	265,699
Total	373,414	430,733
Consumer | Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		$ 12,599
Consumer | Watch
Financing Receivable, Credit Quality Indicator [Line Items]
2020	8
2019	370
2018	599
2017	235
2016	236
2015 and Prior	754
Revolving	2,218
Total	4,420
Consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2020	487
2019	696
2018	2,234
2017	652
2016	762
2015 and Prior	2,152
Revolving	841
Total	$ 7,824

LOANS (Loans by credit qualit_2

LOANS (Loans by credit quality indicator narrative) (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable	$ 9,099,646,000		$ 8,367,917,000
Allowance for credit loss	103,377,000	$ 119,937,000	$ 70,395,000	$ 66,222,000	$ 63,850,000	$ 61,963,000
Loans secured by residential real estate property in process of foreclosure	$ 1,600,000
Loans delinquent 30 to 89 days, percentage	0.17%		0.33%
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Percent of loans			60.00%
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable	$ 371,957,000
Percent of loans			40.00%
Nonpass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable			$ 556,769,000
Percent of nonaccrual loans			14.00%
Nonpass | Paycheck Protection Program ("PPP")
Financing Receivable, Credit Quality Indicator [Line Items]
Loans receivable	64,900,000
Allowance for credit loss	$ 0

LOANS (Past due financing recei

LOANS (Past due financing receivables) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 16,817	$ 31,928
Current	9,003,789	8,259,441
Nonaccrual	79,040	76,548
Total	9,099,646	8,367,917
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	9,533	25,322
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	5,603	2,501
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,681	4,105
Commercial and industrial | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total Past Due	5,924	9,924
Current	2,276,336	2,491,110
Nonaccrual	21,386	29,775
Total	2,303,646	2,530,809
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	3,200	5,121
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,293	904
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	431	3,899
Commercial and industrial | Paycheck Protection Program ("PPP")
Financing Receivable, Past Due [Line Items]
Total Past Due	0
Current	1,128,035
Nonaccrual	0
Total	1,128,035	0
Commercial and industrial | Paycheck Protection Program ("PPP") | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0
Commercial and industrial | Paycheck Protection Program ("PPP") | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0
Commercial and industrial | Paycheck Protection Program ("PPP") | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0
Commercial and industrial | Owner occupied commercial real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	1,948	4,177
Current	1,479,890	1,461,589
Nonaccrual	13,064	6,938
Total	1,494,902	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	1,052	3,487
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	896	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	2,548	695
Current	1,653,491	1,493,619
Nonaccrual	3,644	1,563
Total	1,659,683	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	863	614
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,685	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	907	5,761
Current	915,205	1,020,153
Nonaccrual	1,653	1,167
Total	917,765	1,027,081
Commercial and industrial | Real estate construction | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	310	5,689
Commercial and industrial | Real estate construction | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	597	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	1,308	3,839
Current	488,175	541,455
Nonaccrual	18,575	20,543
Total	508,058	565,837
Agricultural and agricultural real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,308	3,734
Agricultural and agricultural real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	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	3,156	4,370
Current	682,217	814,840
Nonaccrual	16,526	13,067
Total	701,899	832,277
Residential real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,820	4,166
Residential real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	86	24
Residential real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	1,250	180
Consumer
Financing Receivable, Past Due [Line Items]
Total Past Due	1,026	3,162
Current	380,440	436,675
Nonaccrual	4,192	3,495
Total	385,658	443,332
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	980	2,511
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	46	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	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Threshold period past due, nonperforming status of loans and leases	90 days	90 days
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		$ 17,721
Impaired loans without a related allowance		75,171
Total impaired loans held to maturity		92,892
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		17,189
Impaired loans without a related allowance		69,863
Total impaired loans held to maturity		87,052
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		17
Impaired loans without a related allowance		668
Total impaired loans held to maturity		685
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		17
Impaired loans without a related allowance		668
Total impaired loans held to maturity		685
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		11,727
Impaired loans without a related allowance		22,525
Total impaired loans held to maturity		34,252
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		11,710
Impaired loans without a related allowance		20,104
Total impaired loans held to maturity		31,814
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		712
Impaired loans without a related allowance		8,756
Total impaired loans held to maturity		9,468
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		712
Impaired loans without a related allowance		8,756
Total impaired loans held to maturity		9,468
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		138
Impaired loans without a related allowance		1,592
Total impaired loans held to maturity		1,730
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		138
Impaired loans without a related allowance		1,592
Total impaired loans held to maturity		1,730
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		2,751
Impaired loans without a related allowance		19,113
Total impaired loans held to maturity		21,864
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		2,237
Impaired loans without a related allowance		16,317
Total impaired loans held to maturity		18,554
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		1,378
Impaired loans without a related allowance		19,382
Total impaired loans held to maturity		20,760
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		1,378
Impaired loans without a related allowance		19,300
Total impaired loans held to maturity		20,678
Impaired Financing Receivable, Related Allowance		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
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired loans with a related allowance		998
Impaired loans without a related allowance		3,135
Total impaired loans held to maturity		4,133
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired loans with a related allowance		997
Impaired loans without a related allowance		3,126
Total impaired loans held to maturity		4,123
Impaired Financing Receivable, Related Allowance		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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 119,937	$ 63,850	$ 70,395	$ 61,963
Charge-offs	(21,753)	(4,842)	(31,618)	(11,572)
Recoveries	452	2,013	2,916	4,077
Provision	4,741	5,201	49,613	11,754
Ending Balance	103,377	66,222	103,377	66,222
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance	17,392		248
Impact of ASU 2016-13 adoption on January 1, 2020	14,330		14,330
Provision	(3,062)		478
Ending balance	14,330		14,330
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			12,071
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance			13,604
Impact of ASU 2016-13 adoption on January 1, 2020			13,604
Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			82,466
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance			13,852
Impact of ASU 2016-13 adoption on January 1, 2020			13,852
Agricultural and Agricultural Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	5,701	5,986	5,673	4,914
Charge-offs	(936)	(1,673)	(1,190)	(2,100)
Recoveries	0	199	826	528
Provision	576	858	412	2,028
Ending Balance	5,341	5,370	5,341	5,370
Agricultural and Agricultural Real Estate | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(380)
Agricultural and Agricultural Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			5,293
Residential Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	9,304	1,592	1,504	1,813
Charge-offs	(54)	(3)	(368)	(344)
Recoveries	2	52	97	138
Provision	419	164	3,621	198
Ending Balance	9,671	1,805	9,671	1,805
Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			4,817
Residential Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			6,321
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	10,170	4,918	4,816	5,296
Charge-offs	(332)	(446)	(929)	(1,266)
Recoveries	69	95	413	839
Provision	(283)	371	1,009	69
Ending Balance	9,624	4,938	9,624	4,938
Consumer | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			4,315
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			9,131
Commercial and Industrial | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	32,531	27,680	30,787	26,306
Charge-offs	(7,077)	(2,656)	(15,440)	(7,607)
Recoveries	369	1,526	1,153	2,110
Provision	8,775	1,874	14,951	7,615
Ending Balance	34,598	28,424	34,598	28,424
Commercial and Industrial | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			3,147
Commercial and Industrial | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			33,934
Paycheck Protection Program ("PPP") | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0		0
Charge-offs	0		0
Recoveries	0		0
Provision	0		0
Ending Balance	0		0
Paycheck Protection Program ("PPP") | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			0
Paycheck Protection Program ("PPP") | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			0
Owner occupied commercial real estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	23,402	6,182	8,214	6,525
Charge-offs	(13,328)	(43)	(13,541)	(79)
Recoveries	0	3	192	96
Provision	1,155	1,108	16,771	708
Ending Balance	11,229	7,250	11,229	7,250
Owner occupied commercial real estate | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(407)
Owner occupied commercial real estate | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			7,807
Non-owner occupied commercial real estate | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	10,162	7,482	7,802	7,430
Charge-offs	(26)	(21)	(45)	(21)
Recoveries	10	100	18	200
Provision	1,981	186	7,186	138
Ending Balance	12,127	7,747	12,127	7,747
Non-owner occupied commercial real estate | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(2,834)
Non-owner occupied commercial real estate | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			4,968
Real Estate Construction | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	28,667	10,010	11,599	9,679
Charge-offs	0	0	(105)	(155)
Recoveries	2	38	217	166
Provision	(7,882)	640	5,663	998
Ending Balance	$ 20,787	$ 10,688	20,787	$ 10,688
Real Estate Construction | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			3,413
Real Estate Construction | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ 15,012

GOODWILL, CORE DEPOSIT PREMIU_3

GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Goodwill narrative) (Details) - USD ($)	Nov. 30, 2019	May 10, 2019	Sep. 30, 2020	Dec. 31, 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	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 115,469	$ 112,836
Accumulated Amortization	69,197	57,412
Net Carrying Amount	46,272	55,424
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	96,821	96,821
Accumulated Amortization	56,478	48,338
Net Carrying Amount	40,343	48,483
Customer relationship intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,177	1,177
Accumulated Amortization	1,000	972
Net Carrying Amount	177	205
Mortgage servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,458	7,886
Accumulated Amortization	5,635	2,265
Net Carrying Amount	4,823	5,621
Commercial servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,013	6,952
Accumulated Amortization	6,084	5,837
Net Carrying Amount	$ 929	$ 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 ($)	Sep. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Valuation servicing rights in tranches [Line Items]
Loans guaranteed and sold with servicing retained		$ 5,752,000					$ 5,752,000		$ 6,736,000
Valuation allowance							2,100,000
First Bank & Trust
Valuation servicing rights in tranches [Line Items]
Mortgage loans serviced for others		709,900,000					709,900,000		616,700,000
Custodial escrow balances maintained		16,900,000					16,900,000		$ 5,000,000
Mortgage servicing rights
Valuation servicing rights in tranches [Line Items]
Sale of mortgage servicing rights							$ 0	$ 20,556,000
Average constant prepayment rate							16.90%		14.20%
Servicing assets, discount rate							9.02%		9.03%
Fees collected for servicing of mortgage loans		$ 443,000		$ 422,000				$ 1,300,000
Mortgage servicing rights | Measurement Input, Cap Rate | Minimum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0076		0.0080			0.0076	0.0080
Mortgage servicing rights | Measurement Input, Cap Rate | Maximum
Valuation servicing rights in tranches [Line Items]
Average capitalization rate (percent)		0.0116		0.0098			0.0116	0.0098
Mortgage servicing rights | First Bank & Trust
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		$ 4,800,000					$ 4,800,000		$ 5,600,000
Commercial servicing rights
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		1,497,000		$ 1,827,000			1,497,000	$ 1,827,000	1,600,000
Loans guaranteed and sold with servicing retained		$ 71,200,000					$ 71,200,000		$ 82,100,000
Commercial servicing rights | Minimum
Valuation servicing rights in tranches [Line Items]
Average constant prepayment rate							15.12%		14.25%
Servicing assets, discount rate							6.93%		10.65%
Commercial servicing rights | Maximum
Valuation servicing rights in tranches [Line Items]
Average constant prepayment rate							18.37%		18.08%
Servicing assets, discount rate							10.43%		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		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		0.0445
Mortgage Servicing Rights 15-year Tranche
Valuation servicing rights in tranches [Line Items]
Valuation allowance							$ 534,000		$ 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		$ 294,000					294,000		285,000
Fees collected for servicing of mortgage loans		70,000		$ 216,000			$ 242,000	$ 826,000
Period of tranche							20 years
Valuation allowance					$ 0		$ 0		$ 0
Amortization period							20 years		20 years
More Than 20 Years
Valuation servicing rights in tranches [Line Items]
Fair value of mortgage servicing rights		$ 1,203,000					$ 1,203,000		$ 1,309,000
Period of tranche							20 years
Valuation allowance					$ 0		$ 0		$ 0
Amortization period							20 years		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	Sep. 30, 2020USD ($)
Future amortization expense for amortizable intangible assets [Line Items]
Three months ending December 31, 2020	$ 3,138
Year ending December 31,
2021	10,037
2022	8,268
2023	7,147
2024	5,844
2025	4,850
Thereafter	6,988
Total	46,272
Core Deposit Intangibles
Future amortization expense for amortizable intangible assets [Line Items]
Three months ending December 31, 2020	2,436
Year ending December 31,
2021	8,691
2022	7,102
2023	6,202
2024	5,108
2025	4,265
Thereafter	6,539
Total	40,343
Customer Relationship Intangibles
Future amortization expense for amortizable intangible assets [Line Items]
Three months ending December 31, 2020	9
Year ending December 31,
2021	35
2022	34
2023	34
2024	33
2025	32
Thereafter	0
Total	177
Mortgage Servicing Rights
Future amortization expense for amortizable intangible assets [Line Items]
Three months ending December 31, 2020	624
Year ending December 31,
2021	1,050
2022	900
2023	750
2024	600
2025	450
Thereafter	449
Total	4,823
Commercial Servicing Rights
Future amortization expense for amortizable intangible assets [Line Items]
Three months ending December 31, 2020	69
Year ending December 31,
2021	261
2022	232
2023	161
2024	103
2025	103
Thereafter	0
Total	$ 929

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	9 Months Ended
	Sep. 30, 2020	Sep. 30, 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	2,571	654
Amortization	(1,693)	(2,867)
Sale of mortgage servicing rights	0	(20,556)
Valuation allowance	(1,676)	(1,572)
Balance at end of period	$ 4,823	$ 5,022
Servicing rights, net to servicing portfolio	0.68%	0.81%
Commercial servicing rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 1,115	$ 1,709
Originations	62	102
Amortization	(248)	(555)
Valuation allowance	0	(7)
Balance at end of period	929	1,249
Fair value of mortgage servicing rights	$ 1,497	$ 1,827	$ 1,600
Servicing rights, net to servicing portfolio	1.31%	1.44%

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 ($)	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Valuation Allowance		$ 2,100,000
15 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		1,618,000	$ 1,482,000
Fair Value		1,084,000	1,368,000
Valuation Allowance	$ 114,000	534,000
30 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		5,850,000	5,050,000
Fair Value		3,739,000	4,253,000
Valuation Allowance	797,000	2,111,000
Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		118,000	129,000
Fair Value		294,000	285,000
Valuation Allowance	0	0	0
More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		811,000	986,000
Fair Value		1,203,000	1,309,000
Valuation Allowance	0	0	0
First Bank & Trust | 15 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		1,618,000	1,482,000
Fair Value		1,084,000	1,368,000
Valuation Allowance	114,000	534,000
First Bank & Trust | 30 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		5,850,000	5,050,000
Fair Value		3,739,000	4,253,000
Valuation Allowance	797,000	2,111,000
Premier Valley Bank | Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		1,000	1,000
Fair Value		9,000	13,000
Valuation Allowance	0	0
Premier Valley Bank | More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		94,000	135,000
Fair Value		156,000	161,000
Valuation Allowance	0	0
Wisconsin Bank & Trust | Less Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		117,000	128,000
Fair Value		285,000	272,000
Valuation Allowance	0	0
Wisconsin Bank & Trust | More Than 20 Years
Finite-Lived Intangible Assets [Line Items]
Book Value		717,000	851,000
Fair Value		1,047,000	$ 1,148,000
Valuation Allowance	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Cash collateral on derivative financial instruments narrative) (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 4,200,000	$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)transaction	May 18, 2018USD ($)
Derivative [Line Items]
Change in net unrealized losses and reclassification from AOCI to interest expense on cash flow hedges	$ 1.2
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense	$ 2.4
Interest Rate Swaps | Cash Flow Hedges
Derivative [Line Items]
Number of swap transactions | transaction	4
Derivative, notional amount	$ 85	$ 9
Interest Rate Swaps | Cash Flow Hedges | Heartland Financial Statutory Trust IV, V, VI, And VII
Derivative [Line Items]
Derivative, notional amount	85
Interest Rate Swaps | Cash Flow Hedges | Heartland Financial Statutory Trust VI
Derivative [Line Items]
Derivative, notional amount	$ 20
Interest Rate Swaps | Cash Flow Hedges | OCGI Statutory Trust III
Derivative [Line Items]
Derivative, notional amount		3
Interest Rate Swaps | Cash Flow Hedges | OCGI Capital Trust IV
Derivative [Line Items]
Derivative, notional amount		$ 6

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges balance sheet category and fair values) (Details) - USD ($) $ in Thousands	Sep. 30, 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	$ (253)	$ (167)
Receive Rate	0.246%	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	$ 22,667
Fair Value	$ (147)
Receive Rate	2.656%
Weighted Average Pay Rate	3.674%
Other liabilities | Interest Rate Swap Due July 24, 2028
Derivatives, Fair Value [Line Items]
Notional Amount	$ 23,500	$ 25,750
Fair Value	$ (2,449)	$ (1,384)
Receive Rate	2.651%	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	$ (1,592)	$ (614)
Receive Rate	0.25%	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	$ (1,488)	$ (561)
Receive Rate	0.246%	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	$ (74)	$ (15)
Receive Rate	0.25%	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	$ (38)	$ (9)
Receive Rate	0.275%	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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Recognized in OCI, Amount of Gain (Loss)	$ 1,199	$ (800)	$ (2,164)	$ (4,568)
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss)	601	(27)	1,214	(279)
Interest rate swaps
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Recognized in OCI, Amount of Gain (Loss)	(604)	(766)	(3,359)	(4,269)
Interest rate swaps | Interest expense
Trading Activity, Gains and Losses, Net [Line Items]
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss)	595	(31)	1,195	(296)
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	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUME_7

DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 4.2	$ 1.9
Fair Value Hedging | Interest Rate Swaps
Derivative [Line Items]
Cash pledged as collateral	$ 4.2	$ 3.4

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	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional Amount	$ 20,946	$ 21,250
Fair Value	$ (2,900)	$ (1,253)

DERIVATIVE FINANCIAL INSTRUME_9

DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges gans (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair value hedges | Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss)	$ 26	$ (263)	$ (1,647)	$ (1,553)

DERIVATIVE FINANCIAL INSTRUM_10

DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives blance sheet category and fair values) (Details) - Embedded derivatives - Other assets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional Amount	$ 9,308	$ 9,627
Fair Value	$ 758	$ 465

DERIVATIVE FINANCIAL INSTRUM_11

DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives gain (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other noninterest income | Embedded derivatives
Derivative [Line Items]
Amount of Gain (Loss)	$ (69)	$ 1,389	$ 293	$ 318

DERIVATIVE FINANCIAL INSTRUM_12

DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 4,200,000		$ 4,200,000		$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	0		0		0
Back-to-Back Loan Swaps | Interest Rate Swaps
Derivative [Line Items]
Cash pledged as collateral	53,200,000		53,200,000		20,200,000
Back-to-Back Loan Swaps | Interest Rate Swaps | Interest income
Derivative [Line Items]
Gain (loss) recognized	0	$ 0	0	$ 0
Back-to-Back Loan Swaps | Interest Rate Swaps | Counterparties
Derivative [Line Items]
Cash pledged as collateral	$ 0		$ 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	Sep. 30, 2020	Dec. 31, 2019
Other assets
Derivative [Line Items]
Notional Amount	$ 443,856	$ 374,191
Fair Value	49,629	16,927
Other liabilities
Derivative [Line Items]
Notional Amount	443,856	374,191
Fair Value	$ (49,629)	$ (16,927)
Weighted Average Receive Rate | Other assets
Derivative [Line Items]
Weighted Average Rate	4.46%	4.68%
Weighted Average Receive Rate | Other liabilities
Derivative [Line Items]
Weighted Average Rate	2.45%	4.05%
Weighted Average Pay Rate | Other assets
Derivative [Line Items]
Weighted Average Rate	2.45%	4.05%
Weighted Average Pay Rate | Other liabilities
Derivative [Line Items]
Weighted Average Rate	4.46%	4.68%

DERIVATIVE FINANCIAL INSTRUM_14

DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives narrative) (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Cash pledged as collateral	$ 4,200,000	$ 1,900,000
Counterparties
Derivative [Line Items]
Cash pledged as collateral	0	0
Not Designated as Hedging Instrument
Derivative [Line Items]
Cash pledged as collateral	0	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	Sep. 30, 2020	Dec. 31, 2019
Other assets | Interest rate lock commitments (mortgage)
Derivatives, Fair Value [Line Items]
Notional Amount	$ 51,579	$ 20,356
Fair Value	2,255	681
Other assets | Forward commitments
Derivatives, Fair Value [Line Items]
Notional Amount	24,500	16,000
Fair Value	27	15
Other liabilities | Forward commitments
Derivatives, Fair Value [Line Items]
Notional Amount	72,500	36,500
Fair Value	(352)	(113)
Other liabilities | Undesignated interest rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount	9,308	9,627
Fair Value	$ (758)	$ (465)

DERIVATIVE FINANCIAL INSTRUM_16

DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives gains (losses) recognized) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 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	$ 249	$ (255)	$ 3,243	$ 561
Net gains on sale of loans held for sale | Forward commitments
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Recognized	(44)	283	(228)	255
Other noninterest income | Undesignated interest rate swaps
Trading Activity, Gains and Losses, Net [Line Items]
Gain (Loss) Recognized	$ 69	$ (1,389)	$ (293)	$ (318)

FAIR VALUE (Fair value measurem

FAIR VALUE (Fair value measurement recurring) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Equity securities with a readily determinable fair value	$ 19,569
Level 1
Assets
Securities available for sale	2,035	$ 8,503
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Level 2
Assets
Securities available for sale	4,948,663	3,304,293
Derivative assets	50,387	17,527
Liabilities
Derivative liabilities	59,328	21,462
Level 3
Assets
Securities available for sale	0	0
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Forward commitments | Level 1
Assets
Derivative assets	0
Forward commitments | Level 2
Assets
Derivative assets	27
Forward commitments | Level 3
Assets
Derivative assets	0
U.S. government corporations and agencies
Assets
Securities available for sale	3,272	9,893
Mortgage and asset-backed securities
Assets
Securities available for sale	3,742,508	2,577,278
Obligations of states and political subdivisions
Assets
Securities available for sale	1,185,349	707,190
Recurring Basis
Assets
Equity securities with a readily determinable fair value	19,569	18,435
Total assets at fair value	5,003,367	3,331,019
Liabilities
Total liabilities at fair value	59,680	21,575
Recurring Basis | Level 1
Assets
Equity securities with a readily determinable fair value	0	0
Total assets at fair value	2,035	8,503
Liabilities
Total liabilities at fair value	0	0
Recurring Basis | Level 2
Assets
Equity securities with a readily determinable fair value	19,569	18,435
Total assets at fair value	4,999,077	3,321,835
Liabilities
Total liabilities at fair value	59,680	21,575
Recurring Basis | Level 3
Assets
Equity securities with a readily determinable fair value	0	0
Total assets at fair value	2,255	681
Liabilities
Total liabilities at fair value	0	0
Recurring Basis | Derivative financial instruments
Assets
Derivative assets	50,387	17,527
Liabilities
Derivative liabilities	59,328	21,462
Recurring Basis | Derivative financial instruments | Level 1
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Recurring Basis | Derivative financial instruments | Level 2
Assets
Derivative assets	50,387	17,527
Liabilities
Derivative liabilities	59,328	21,462
Recurring Basis | Derivative financial instruments | Level 3
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Recurring Basis | Interest rate lock commitments
Assets
Derivative assets	2,255	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	2,255	681
Recurring Basis | Forward commitments
Assets
Derivative assets	27
Liabilities
Derivative liabilities	352	113
Recurring Basis | Forward commitments | Level 1
Assets
Derivative assets	0
Liabilities
Derivative liabilities	0	0
Recurring Basis | Forward commitments | Level 2
Assets
Derivative assets	27
Liabilities
Derivative liabilities	352	113
Recurring Basis | Forward commitments | Level 3
Assets
Derivative assets	0
Liabilities
Derivative liabilities	0	0
Recurring Basis | U.S. government corporations and agencies
Assets
Securities available for sale	3,272	9,893
Recurring Basis | U.S. government corporations and agencies | Level 1
Assets
Securities available for sale	2,035	8,503
Recurring Basis | U.S. government corporations and agencies | Level 2
Assets
Securities available for sale	1,237	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	3,742,508	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	3,742,508	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	1,185,349	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	1,185,349	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	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 5,050	$ 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	65,969	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	31,584	36,464
Loans held for sale	65,969	26,748
Other real estate owned	5,050	6,914
Fair Value, Measurements, Nonrecurring | Mortgage servicing rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing rights	4,823	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	567	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	10,718	2,450
Loans held for sale	(2,648)	(980)
Other real estate owned	1,047	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	1,676	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	65,969	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	31,584	36,464
Loans held for sale	0	0
Other real estate owned	5,050	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	4,823	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	567	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	13,923	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	781	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	13,923	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	376	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	36	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	376	4,978
Fair Value, Measurements, Nonrecurring | Consumer
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	250	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	250	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	9,602	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	445	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	9,602	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	5,949	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	9,456	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	5,949	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	1,035	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	1,035	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	449	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	$ 449	$ 0

FAIR VALUE (Quantitative Inform

FAIR VALUE (Quantitative Information about Level 3 fair value measurements) (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Interest rate lock commitments | Recurring Basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	$ 2,255	$ 681
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	0	0
Level 3 | Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	2,255	681
Level 3 | Discounted cash flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing rights	4,823	5,621
Level 3 | Modified appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	5,050	6,914
Level 3 | Modified appraised value | Commercial and industrial
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	9,602	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	5,949	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	1,035	1,305
Level 3 | Modified appraised value | Real estate construction
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	449	0
Level 3 | Modified appraised value | Agricultural and agricultural real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	13,923	12,623
Level 3 | Modified appraised value | Residential real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	376	3,088
Level 3 | Modified appraised value | Consumer
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent impaired loans	250	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	567	2,967
Level 3 | Interest rate lock commitments | Recurring Basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	2,255	681
Level 3 | Interest rate lock commitments | Discounted cash flows
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets	$ 2,255	$ 681
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	0.86	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 | Owner occupied commercial real estate | 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 | Owner occupied commercial real estate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	8.00%	14.00%
Appraisal discount | Level 3 | Modified appraised value | Non-owner occupied commercial real estate | 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 | Non-owner occupied commercial real estate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing assets, discount rate	7.00%	14.00%
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	15.00%	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	8.00%	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	10.00%	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	9 Months Ended	12 Months Ended
	Sep. 30, 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 net gains included in earnings	3,243	18
Issuances	11,387	10,702
Settlements	(13,056)	(10,764)
Balance at period end	$ 2,255	$ 681

FAIR VALUE (Estimated fair valu

FAIR VALUE (Estimated fair value financial instruments incl. carrying amounts) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities:
Held to maturity	$ 99,619	$ 100,484
Level 1
Financial assets:
Cash and cash equivalents	331,665	378,734
Time deposits in other financial institutions	3,129	3,564
Securities:
Carried at fair value	2,035	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:
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	4,948,663	3,304,293
Held to maturity	99,619	100,484
Other investments	35,940	31,321
Loans held for sale	65,969	26,748
Loans, net	8,889,019	8,206,879
Cash surrender value on life insurance	173,111	171,625
Derivative assets	50,387	17,527
Financial liabilities:
Short term borrowings	306,706	182,626
Other borrowings	525,388	278,169
Derivative liabilities	59,328	21,462
Level 2 | Interest rate lock commitments
Securities:
Derivative assets	0	0
Level 2 | Demand deposits
Financial liabilities:
Deposits	5,022,567	3,543,863
Level 2 | Savings deposits
Financial liabilities:
Deposits	6,742,151	6,307,425
Level 2 | Time deposits
Financial liabilities:
Deposits	1,002,392	1,193,043
Level 2 | Forward commitments
Financial liabilities:
Derivative liabilities	352	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	31,584	36,464
Cash surrender value on life insurance	0	0
Derivative assets	0	0
Financial liabilities:
Short term borrowings	0	0
Other borrowings	0	0
Derivative liabilities	0	0
Level 3 | Interest rate lock commitments
Securities:
Derivative assets	2,255	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	2,219,880	2,606,080
Commercial and industrial | Level 2 | Real estate construction
Securities:
Loans, net	907,470	924,041
Commercial and industrial | Level 3 | Commercial and industrial
Securities:
Loans, net	9,602	15,173
Commercial and industrial | Level 3 | Real estate construction
Securities:
Loans, net	449	0
Paycheck Protection Program ("PPP") | Level 1 | Commercial and industrial
Securities:
Loans, net	0
Paycheck Protection Program ("PPP") | Level 2 | Commercial and industrial
Securities:
Loans, net	1,128,035
Paycheck Protection Program ("PPP") | Level 3 | Commercial and industrial
Securities:
Loans, net	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	1,464,643	1,408,036
Owner occupied commercial real estate | Level 3 | Commercial and industrial
Securities:
Loans, net	5,949	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	1,633,306	1,396,222
Non-owner occupied commercial real estate | Level 3 | Commercial and industrial
Securities:
Loans, net	1,035	1,305
Agricultural and agricultural real estate | Level 1
Securities:
Loans, net	0	0
Agricultural and agricultural real estate | Level 2
Securities:
Loans, net	470,734	564,198
Agricultural and agricultural real estate | Level 3
Securities:
Loans, net	13,923	12,623
Residential real estate | Level 1
Securities:
Loans, net	0	0
Residential real estate | Level 2
Securities:
Loans, net	690,369	838,365
Residential real estate | Level 3
Securities:
Loans, net	376	3,088
Consumer | Level 1
Securities:
Loans, net	0	0
Consumer | Level 2
Securities:
Loans, net	374,582	469,939
Consumer | Level 3
Securities:
Loans, net	250	988
Carrying Amount
Financial assets:
Cash and cash equivalents	331,655	378,734
Time deposits in other financial institutions	3,129	3,564
Securities:
Carried at fair value	4,950,698	3,312,796
Held to maturity	88,700	91,324
Other investments	35,940	31,321
Loans held for sale	65,969	26,748
Loans, net	8,996,269	8,297,522
Cash surrender value on life insurance	173,111	171,625
Derivative assets	50,387	17,527
Financial liabilities:
Short term borrowings	306,706	182,626
Other borrowings	524,045	275,773
Derivative liabilities	59,328	21,462
Carrying Amount | Interest rate lock commitments
Securities:
Derivative assets	2,255	681
Carrying Amount | Demand deposits
Financial liabilities:
Deposits	5,022,567	3,543,863
Carrying Amount | Savings deposits
Financial liabilities:
Deposits	6,742,151	6,307,425
Carrying Amount | Time deposits
Financial liabilities:
Deposits	1,002,392	1,193,043
Carrying Amount | Forward commitments
Financial liabilities:
Derivative liabilities	352	113
Carrying Amount | Commercial and industrial | Commercial and industrial
Securities:
Loans, net	2,269,048	2,530,809
Carrying Amount | Commercial and industrial | Real estate construction
Securities:
Loans, net	896,978	1,027,081
Carrying Amount | Paycheck Protection Program ("PPP") | Commercial and industrial
Securities:
Loans, net	1,128,035
Carrying Amount | Owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,483,673	1,472,704
Carrying Amount | Non-owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,647,556	1,495,877
Carrying Amount | Agricultural and agricultural real estate
Securities:
Loans, net	502,717	565,837
Carrying Amount | Residential real estate
Securities:
Loans, net	692,228	832,277
Carrying Amount | Consumer
Securities:
Loans, net	376,034	443,332
Estimated Fair Value
Financial assets:
Cash and cash equivalents	331,665	378,734
Time deposits in other financial institutions	3,129	3,564
Securities:
Carried at fair value	4,950,698	3,312,796
Held to maturity	99,619	100,484
Other investments	35,940	31,321
Loans held for sale	65,969	26,748
Loans, net	8,920,603	8,243,343
Cash surrender value on life insurance	173,111	171,625
Derivative assets	50,387	17,527
Financial liabilities:
Short term borrowings	306,706	182,626
Other borrowings	525,388	278,169
Derivative liabilities	59,328	21,462
Estimated Fair Value | Interest rate lock commitments
Securities:
Derivative assets	2,255	681
Estimated Fair Value | Demand deposits
Financial liabilities:
Deposits	5,022,567	3,543,863
Estimated Fair Value | Savings deposits
Financial liabilities:
Deposits	6,742,151	6,307,425
Estimated Fair Value | Time deposits
Financial liabilities:
Deposits	1,002,392	1,193,043
Estimated Fair Value | Forward commitments
Financial liabilities:
Derivative liabilities	352	113
Estimated Fair Value | Commercial and industrial | Commercial and industrial
Securities:
Loans, net	2,229,482	2,621,253
Estimated Fair Value | Commercial and industrial | Real estate construction
Securities:
Loans, net	907,919	924,041
Estimated Fair Value | Paycheck Protection Program ("PPP") | Commercial and industrial
Securities:
Loans, net	1,128,035
Estimated Fair Value | Owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,470,592	1,409,388
Estimated Fair Value | Non-owner occupied commercial real estate | Commercial and industrial
Securities:
Loans, net	1,634,341	1,397,527
Estimated Fair Value | Agricultural and agricultural real estate
Securities:
Loans, net	484,657	576,821
Estimated Fair Value | Residential real estate
Securities:
Loans, net	690,745	841,453
Estimated Fair Value | Consumer
Securities:
Loans, net	374,832	$ 470,927
Forward commitments | Level 1
Securities:
Derivative assets	0
Forward commitments | Level 2
Securities:
Derivative assets	27
Forward commitments | Level 3
Securities:
Derivative assets	0
Forward commitments | Carrying Amount
Securities:
Derivative assets	27
Forward commitments | Estimated Fair Value
Securities:
Derivative assets	$ 27

FAIR VALUE (Deposits held for s

FAIR VALUE (Deposits held for sale narrative) (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 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	$ 21,411	$ 11,545
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	$ 2,300		$ 681

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	$ 17,755	$ 18,287	$ 52,075	$ 56,771
Loan servicing income	638	821	1,980	3,888
Securities gains, net	1,300	2,013	4,964	7,168
Unrealized gain on equity securities, net	155	144	604	514
Net gains on sale of loans held for sale	8,894	4,673	21,411	12,192
Valuation adjustment on servicing rights	(120)	(626)	(1,676)	(1,579)
Income on bank owned life insurance	868	881	2,533	2,668
Other noninterest income	1,726	3,207	5,779	6,556
Total noninterest income out-of-scope of Topic 606	13,461	11,113	35,595	31,407
TOTAL NONINTEREST INCOME	31,216	29,400	87,670	88,178
Service charges and fees on deposit accounts
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	3,710	3,221	10,623	9,383
Overdraft fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	2,184	2,917	6,627	8,537
Customer service and other service fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	39	104	133	270
Credit card fee income
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	3,894	3,936	11,861	11,555
Debit card income
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	1,922	2,188	5,498	10,044
Total service charges and fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	11,749	12,366	34,742	39,789
Trust fees
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	5,357	4,959	15,356	14,258
Brokerage and insurance commissions
Disaggregation of Revenue [Line Items]
Service charges and fees on deposit accounts	$ 649	$ 962	$ 1,977	$ 2,724

STOCK COMPENSATION (Narrative)

STOCK COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	May 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit related to share-based payment awards			$ 93	$ 270
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	3 years	3 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs			$ 5,400	$ 4,800
Share-based unrecognized compensation costs			$ 6,800
Long-Term Incentive Plan 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (in shares)						1,460,000
Shares available for issuance (in shares)			1,421,218
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)			54,957	32,662

STOCK COMPENSATION (Summary of

STOCK COMPENSATION (Summary of RSUs Activity) (Details) - RSUs - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Shares
Outstanding at beginning of period (in shares)	254,383	266,995
Granted (in shares)	220,688	157,583
Vested (in shares)	(119,325)	(142,023)
Forfeited (in shares)	(15,674)	(26,136)
Outstanding at end of period (in shares)	340,072	256,419
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 46.76	$ 43.89
Granted (in dollars per share)	31.95	45
Vested (in dollars per share)	44.49	38.93
Forfeited (in dollars per share)	47.13	48.95
Outstanding at end of period (in dollars per share)	$ 38.37	$ 46.96

LEASES (Schedule of ROU Assets

LEASES (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets	$ 19,963	$ 23,200
Operating lease liabilities	$ 21,949	$ 24,617

LEASES (Schedule of Lease Costs

LEASES (Schedule of Lease Costs and Supplemental Information) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 1,359	$ 1,681	$ 3,998	$ 4,548
Variable lease cost	14	42	46	109
Total lease cost	1,373	1,723	4,044	4,657
Noncash reduction of ROU assets arising from lease modifications and terminations	692	495	1,067	2,959
Noncash reduction of lease liabilities arising from lease modifications and terminations	$ 3	$ 284	$ 389	$ 2,771
Weighted-average remaining operating lease term (in years)	6 years 6 months		6 years 6 months
Weighted-average discount rate for operating leases	2.97%		2.97%

LEASES (Schedule of Minimum Pay

LEASES (Schedule of Minimum Payments for Operating Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Three months ending December 31, 2020	$ 1,422
2021	5,406
2022	4,183
2023	2,850
2024	2,140
Thereafter	8,160
Total lease payments	24,161
Less interest	(2,212)
Present value of lease liabilities	$ 21,949	$ 24,617

Uncategorized Items - htlf-2020

Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201602Member