Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 | 42,251,798 | |
Entity Central Index Key | 0000920112 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 192,247 | $ 219,243 |
Interest bearing deposits with other banks and other short-term investments | 135,158 | 118,660 |
Cash and cash equivalents | 327,405 | 337,903 |
Time deposits in other financial institutions | 3,138 | 3,129 |
Securities: | ||
Carried at fair value (cost of $7,416,143 at September 30, 2021, and $6,024,225 at December 31, 2020) | 7,449,936 | 6,127,975 |
Held to maturity, net of allowance for credit losses of $0 at September 30, 2021, and $51 at December 31, 2020 (fair value of $95,010 at September 30, 2021, and $100,041 at December 31, 2020) | 85,354 | 88,839 |
Other investments, at cost | 83,332 | 75,253 |
Loans held for sale | 37,078 | 57,949 |
Loans receivable: | ||
Held to maturity | 9,854,907 | 10,023,051 |
Allowance for credit losses | (117,533) | (131,606) |
Loans receivable, net | 9,737,374 | 9,891,445 |
Premises, furniture and equipment, net | 219,297 | 219,595 |
Premises, furniture and equipment held for sale | 2,699 | 6,499 |
Other real estate, net | 4,744 | 6,624 |
Goodwill | 576,005 | 576,005 |
Core deposit intangibles and customer relationship intangibles, net | 35,157 | 42,383 |
Servicing rights, net | 6,351 | 6,052 |
Cash surrender value on life insurance | 190,576 | 187,664 |
Other assets | 237,779 | 281,024 |
TOTAL ASSETS | 18,996,225 | 17,908,339 |
Deposits: | ||
Demand | 6,537,722 | 5,688,810 |
Savings | 8,416,204 | 8,019,704 |
Time | 1,068,317 | 1,271,391 |
Total deposits | 16,022,243 | 14,979,905 |
Short-term borrowings | 265,620 | 167,872 |
Other borrowings | 371,765 | 457,042 |
Accrued expenses and other liabilities | 164,345 | 224,289 |
TOTAL LIABILITIES | 16,823,973 | 15,829,108 |
STOCKHOLDERS' EQUITY: | ||
Common stock (par value $1 per share; 60,000,000 shares authorized at both September 30, 2021, and December 31, 2020; issued 42,250,092 shares at September 30, 2021, and 42,093,862 shares at December 31, 2020) | 42,250 | 42,094 |
Capital surplus | 1,068,913 | 1,062,083 |
Retained earnings | 926,834 | 791,630 |
Accumulated other comprehensive income | 23,550 | 72,719 |
TOTAL STOCKHOLDERS' EQUITY | 2,172,252 | 2,079,231 |
TOTAL LIABILITIES AND EQUITY | 18,996,225 | 17,908,339 |
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 | $ 110,705 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities carried at fair value, cost | $ 7,416,143 | $ 6,024,225 |
Held to maturity, allowance for credit losses | 0 | 51 |
Estimated Fair Value | $ 95,010 | $ 100,041 |
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) | 42,250,092 | 42,093,862 |
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 | 11,500 |
Preferred stock, shares issued (in shares) | 11,500 | 11,500 |
Preferred stock, shares outstanding (in shares) | 11,500 | 11,500 |
Obligations of states and political subdivisions | ||
Held to maturity, allowance for credit losses | $ 0 | $ 51 |
Estimated Fair Value | $ 95,010 | $ 100,041 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 112,062 | $ 102,657 | $ 336,416 | $ 316,076 |
Interest on securities: | ||||
Taxable | 32,384 | 25,016 | 94,373 | 70,109 |
Nontaxable | 4,609 | 3,222 | 13,673 | 8,749 |
Interest on federal funds sold | 0 | 0 | 1 | 0 |
Interest on interest bearing deposits in other financial institutions | 132 | 72 | 258 | 847 |
TOTAL INTEREST INCOME | 149,187 | 130,967 | 444,721 | 395,781 |
INTEREST EXPENSE: | ||||
Interest on deposits | 3,444 | 4,962 | 11,629 | 25,678 |
Interest on short-term borrowings | 98 | 78 | 348 | 435 |
Interest on other borrowings (includes $543 and $595 of interest benefit related to derivatives reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2021 and 2020, respectively, and $1,601 and $1,195 of interest benefit related to derivatives reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020, respectively) | 3,102 | 3,430 | 9,378 | 10,514 |
TOTAL INTEREST EXPENSE | 6,644 | 8,470 | 21,355 | 36,627 |
NET INTEREST INCOME | 142,543 | 122,497 | 423,366 | 359,154 |
Provision (benefit) for credit losses | (4,534) | 1,678 | (12,262) | 49,994 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 147,077 | 120,819 | 435,628 | 309,160 |
NONINTEREST INCOME: | ||||
Revenue from contract with customers | 22,638 | 17,755 | 64,975 | 52,075 |
Loan servicing income | 784 | 638 | 2,495 | 1,980 |
Securities gains, net (includes $1,535 and $1,099 of net security gains reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2021 and 2020, respectively, and $4,347 and $4,763 of net security gains reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020, respectively) | 1,535 | 1,300 | 4,347 | 4,964 |
Unrealized gain on equity securities, net | 112 | 155 | 85 | 604 |
Net gains on sale of loans held for sale | 5,281 | 8,894 | 16,454 | 21,411 |
Valuation adjustment on servicing rights | 195 | (120) | 586 | (1,676) |
Income on bank owned life insurance | 940 | 868 | 2,706 | 2,533 |
Other noninterest income | 1,239 | 1,726 | 4,557 | 5,779 |
TOTAL NONINTEREST INCOME | 32,724 | 31,216 | 96,205 | 87,670 |
NONINTEREST EXPENSES: | ||||
Salaries and employee benefits | 60,689 | 50,978 | 177,083 | 151,053 |
Occupancy | 7,366 | 6,732 | 22,683 | 19,705 |
Furniture and equipment | 3,365 | 2,500 | 9,959 | 8,601 |
Professional fees | 17,242 | 12,802 | 46,969 | 38,951 |
Advertising | 1,921 | 928 | 5,039 | 4,128 |
Core deposit and customer relationship intangibles amortization | 2,295 | 2,492 | 7,226 | 8,169 |
Other real estate and loan collection expenses | 78 | 335 | 627 | 872 |
(Gain)/loss on sales/valuations of assets, net | (3) | 1,763 | 374 | 2,480 |
Acquisition, integration and restructuring costs | 204 | 1,146 | 3,342 | 3,195 |
Partnership investment in tax credit projects | 2,374 | 927 | 3,754 | 1,902 |
Other noninterest expenses | 15,096 | 9,793 | 39,370 | 32,638 |
TOTAL NONINTEREST EXPENSES | 110,627 | 90,396 | 316,426 | 271,694 |
INCOME BEFORE INCOME TAXES | 69,174 | 61,639 | 215,407 | 125,136 |
Income taxes (includes $524 and $429 of income tax expense reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2021 and 2020, respectively, and $1,501 and $1,509 of income tax expense reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020, respectively) | 13,250 | 13,681 | 45,064 | 27,007 |
NET INCOME | 55,924 | 47,958 | 170,343 | 98,129 |
Preferred dividends | (2,013) | (2,437) | (6,038) | (2,437) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 53,911 | $ 45,521 | $ 164,305 | $ 95,692 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 1.27 | $ 1.23 | $ 3.89 | $ 2.59 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | 1.27 | 1.23 | 3.88 | 2.59 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.25 | $ 0.20 | $ 0.69 | $ 0.60 |
Service charges and fees | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | $ 15,551 | $ 11,749 | $ 44,354 | $ 34,742 |
Trust fees | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | 6,221 | 5,357 | 18,037 | 15,356 |
Brokerage and insurance commissions | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | $ 866 | $ 649 | $ 2,584 | $ 1,977 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest benefit | $ (3,102) | $ (3,430) | $ (9,378) | $ (10,514) |
Gain (loss) on securities | 1,535 | 1,300 | 4,347 | 4,964 |
Income tax expense (benefit) | 13,250 | 13,681 | 45,064 | 27,007 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Interest benefit | 543 | 595 | 1,601 | 1,195 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Net Unrealized Investment Gain (Loss) | ||||
Gain (loss) on securities | 1,535 | 1,099 | 4,347 | 4,763 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) | ||||
Income tax expense (benefit) | $ 524 | $ 429 | $ 1,501 | $ 1,509 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 55,924 | $ 47,958 | $ 170,343 | $ 98,129 |
Securities: | ||||
Net change in unrealized gain/(loss) on securities | (44,968) | 31,340 | (65,613) | 84,564 |
Reclassification adjustment for net gains realized in net income | (1,535) | (1,099) | (4,347) | (4,763) |
Income tax (expense)/benefit | 12,181 | (7,845) | 18,264 | (20,777) |
Other comprehensive gain/(loss) on securities | (34,322) | 22,396 | (51,696) | 59,024 |
Derivatives used in cash flow hedging relationships: | ||||
Net change in unrealized gain/(loss) on derivatives | 2,220 | 1,199 | 4,853 | (2,164) |
Reclassification adjustment for net gains on derivatives realized in net income | (543) | (601) | (1,601) | (1,214) |
Income tax (expense)/benefit | (392) | (126) | (725) | 706 |
Other comprehensive income (loss) on cash flow hedges | 1,285 | 472 | 2,527 | (2,672) |
Other comprehensive income (loss) | (33,037) | 22,868 | (49,169) | 56,352 |
TOTAL COMPREHENSIVE INCOME | $ 22,887 | $ 70,826 | $ 121,174 | $ 154,481 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income | $ 55,924 | $ 47,958 | $ 170,343 | $ 98,129 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 20,342 | 20,726 | |||
Provision (benefit) for credit losses | (12,262) | 49,994 | |||
Net amortization of premium on securities | 30,975 | 9,925 | |||
Securities gains, net | (1,535) | (1,300) | (4,347) | (4,964) | |
Unrealized gain on equity securities, net | (85) | (604) | |||
Stock based compensation | 6,732 | 5,551 | |||
Loans originated for sale | (364,808) | (461,723) | |||
Proceeds on sales of loans held for sale | 401,078 | 443,913 | |||
Net gains on sale of loans held for sale | (15,399) | (21,411) | |||
(Increase) decrease in accrued interest receivable | 353 | (7,955) | |||
Decrease in prepaid expenses | 318 | 408 | |||
Decrease in accrued interest payable | (271) | (1,461) | |||
Capitalization of servicing rights | (1,055) | (2,633) | |||
Valuation adjustment on servicing rights | (195) | 120 | (586) | 1,676 | |
Loss on sales/valuations of assets, net | 1,970 | 2,480 | |||
Net excess tax benefit (expense) from stock based compensation | 304 | (93) | |||
Other, net | (751) | (48,914) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 232,851 | 83,044 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchase of time deposits in other financial institutions | (9) | (8) | |||
Proceeds from the sale of securities available for sale | 169,108 | 306,383 | 799,588 | 818,022 | |
Proceeds from the sale of securities held to maturity | 0 | 1,056 | |||
Proceeds from the maturity of and principal paydowns on securities available for sale | 722,512 | 400,565 | |||
Proceeds from the maturity of and principal paydowns on securities held to maturity | 4,634 | 3,235 | |||
Proceeds from the maturity of time deposits in other financial institutions | 0 | 593 | |||
Proceeds from the sale, maturity of and principal paydowns on other investments | 2,843 | 6,297 | |||
Purchase of securities available for sale | (2,941,662) | (2,777,981) | |||
Purchase of other investments | (10,922) | (10,916) | |||
Net (increase) decrease in loans | 150,876 | ||||
Net (increase) decrease in loans | (746,723) | ||||
Purchase of bank owned life insurance policies | (196) | (208) | |||
Proceeds from bank owned life insurance policies | 0 | 606 | |||
Capital expenditures | (15,705) | (13,178) | |||
Proceeds from the sale of equipment | 7,332 | 3,339 | |||
Net cash expended in divestitures | (15,682) | 0 | |||
Proceeds on sale of OREO and other repossessed assets | 5,032 | 2,559 | |||
NET CASH USED BY INVESTING ACTIVITIES | (1,291,359) | (2,312,742) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Net increase in demand deposits | 855,996 | 1,478,704 | |||
Net increase in savings deposits | 411,864 | 434,726 | |||
Net decrease in time deposit accounts | (198,024) | (190,651) | |||
Net increase in short-term borrowings | 97,748 | 205,277 | |||
Proceeds from short term advances | 51,700 | 541,545 | |||
Repayments of short term advances | (51,700) | (622,742) | |||
Proceeds from other borrowings | 147,614 | 254,833 | |||
Repayments of other borrowings | (233,765) | (7,399) | |||
Net proceeds from the issuance of preferred stock | 0 | 110,705 | |||
Proceeds from issuance of common stock | 1,716 | 2,150 | |||
Dividends paid | (35,139) | (24,529) | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,048,010 | 2,182,619 | |||
Net decrease in cash and cash equivalents | (10,498) | (47,079) | |||
Cash and cash equivalents at beginning of year | 337,903 | 378,734 | $ 378,734 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 327,405 | $ 331,655 | 327,405 | 331,655 | $ 337,903 |
Supplemental disclosures: | |||||
Cash paid for income/franchise taxes | 42,425 | 26,701 | |||
Cash paid for interest | 21,632 | 38,088 | |||
Loans transferred to OREO | 2,713 | 1,706 | |||
Transfer of premises from premises, furniture and equipment, net, to premises, furniture and equipment held for sale | 1,564 | 0 | |||
Transfer of premises from premises, furniture and equipment held for sale to premises, furniture and equipment, net | 396 | 450 | |||
Dividends declared, not paid | 2,013 | 0 | |||
Purchases of securities available for sale, accrued, not settled | 0 | 4,792 | |||
Transfer of available for sale securities to held to maturity securities | 0 | 462 | |||
Purchases of loans held to maturity accrued, not settled | $ 0 | $ 9,600 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Series E Preferred Stock | Impact of ASU 2016-13 adoption | Adjusted balance at January 1, 2020 | Preferred Stock | Preferred StockSeries E Preferred Stock | Preferred StockAdjusted balance at January 1, 2020 | Common Stock | Common StockAdjusted balance at January 1, 2020 | Capital Surplus | Capital SurplusAdjusted balance at January 1, 2020 | Retained Earnings | Retained EarningsImpact of ASU 2016-13 adoption | Retained EarningsAdjusted balance at January 1, 2020 | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Adjusted balance at January 1, 2020 |
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 (loss) | 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 (loss) | 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 | ||||||||||
Balance at beginning of period at Dec. 31, 2020 | 2,079,231 | 110,705 | 42,094 | 1,062,083 | 791,630 | 72,719 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Comprehensive income (loss) | 121,174 | 170,343 | (49,169) | |||||||||||||
Cash dividends declared: | ||||||||||||||||
Preferred | (6,038) | (6,038) | ||||||||||||||
Common | (29,101) | (29,101) | ||||||||||||||
Issuance of shares of common stock | 254 | 156 | 98 | |||||||||||||
Stock based compensation | 6,732 | 6,732 | ||||||||||||||
Balance at end of period at Sep. 30, 2021 | 2,172,252 | 110,705 | 42,250 | 1,068,913 | 926,834 | 23,550 | ||||||||||
Balance at beginning of period at Jun. 30, 2021 | 2,159,786 | 110,705 | 42,245 | 1,066,765 | 883,484 | 56,587 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Comprehensive income (loss) | 22,887 | 55,924 | (33,037) | |||||||||||||
Cash dividends declared: | ||||||||||||||||
Preferred | (2,013) | (2,013) | ||||||||||||||
Common | (10,561) | (10,561) | ||||||||||||||
Issuance of shares of common stock | 197 | 5 | 192 | |||||||||||||
Stock based compensation | 1,956 | 1,956 | ||||||||||||||
Balance at end of period at Sep. 30, 2021 | $ 2,172,252 | $ 110,705 | $ 42,250 | $ 1,068,913 | $ 926,834 | $ 23,550 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends per share preferred stock (in dollars per share) | $ 175 | $ 211.94 | $ 525 | $ 211.94 | |
Cash dividends per share common stock (in dollars per share) | $ 0.25 | $ 0.20 | $ 0.69 | $ 0.60 | |
Shares of preferred stock issued (in shares) | 11,500 | ||||
Shares of common stock issued (in shares) | 4,640 | 40,646 | 156,230 | 181,112 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020, included in the Annual Report on Form 10-K of Heartland Financial USA, Inc. ("HTLF") filed with the Securities and Exchange Commission ("SEC") on February 25, 2021 . 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 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, 2021, are not necessarily indicative of the results expected for the year ending December 31, 2021. Earnings Per Share Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. Amounts used in the determination of basic and diluted earnings per share for the three- and nine-months ended September 30, 2021, and 2020, are shown in the table below, dollars and number of shares in thousands, except per share data: Three Months Ended 2021 2020 Net income $ 55,924 $ 47,958 Preferred dividends (2,013) (2,437) Net income available to common stockholders $ 53,911 $ 45,521 Weighted average common shares outstanding for basic earnings per share 42,303 36,941 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 113 54 Weighted average common shares for diluted earnings per share 42,416 36,995 Earnings per common share — basic $ 1.27 $ 1.23 Earnings per common share — diluted $ 1.27 $ 1.23 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 3 41 Nine Months Ended 2021 2020 Net income $ 170,343 $ 98,129 Preferred dividends (6,038) (2,437) Net income available to stockholders $ 164,305 $ 95,692 Weighted average common shares outstanding for basic earnings per share 42,241 36,882 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 140 74 Weighted average common shares for diluted earnings per share 42,381 36,956 Earnings per common share — basic $ 3.89 $ 2.59 Earnings per common share — diluted $ 3.88 $ 2.59 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 1 — Subsequent Events - HTLF 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 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. HTLF has a formal working group that is responsible for the planning, assessment and execution of the transition from LIBOR as an interest rate benchmark to term SOFR. Currently, HTLF has adjustable rate loans, several debt obligations and securities and derivative instruments in place that reference LIBOR-based rates. HTLF’s transition plan provides for the cessation in new contracts of the use of LIBOR as a reference rate no later than December 31, 2021. Management will continue to assess HTLF preparedness and risk management through oversight and internal reporting on the progress of the transition plan. 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. HTLF adopted this ASU on January 1, 2021, as required, and the adoption did not have a material impact on its 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. HTLF 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, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Johnson Bank branches On December 4, 2020, Arizona Bank & Trust ("AB&T"), a wholly-owned subsidiary headquartered in Phoenix, Arizona, completed its acquisition of certain assets and assumed 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. As of the closing date, AB&T acquired, at fair value, total assets of $419.7 million, which included gross loans of $150.7 million and assumed deposits of $415.5 million and certain other liabilities. AIM Bancshares, Inc. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021, and December 31, 2020, are summarized in the table below, in thousands: Amortized Gross Gross Estimated September 30, 2021 U.S. treasuries $ 997 $ 16 $ — $ 1,013 U.S. agencies 35,453 208 (628) 35,033 Obligations of states and political subdivisions 1,790,972 53,601 (21,108) 1,823,465 Mortgage-backed securities - agency 2,387,792 17,104 (33,632) 2,371,264 Mortgage-backed securities - non-agency 1,619,636 9,760 (1,493) 1,627,903 Commercial mortgage-backed securities - agency 128,609 2,021 (2,769) 127,861 Commercial mortgage-backed securities - non-agency 560,445 1,612 (390) 561,667 Asset-backed securities 868,215 10,570 (1,139) 877,646 Corporate bonds 3,234 63 (3) 3,294 Total debt securities 7,395,353 94,955 (61,162) 7,429,146 Equity securities with a readily determinable fair value 20,790 — — 20,790 Total $ 7,416,143 $ 94,955 $ (61,162) $ 7,449,936 December 31, 2020 U.S. treasuries $ 1,995 $ 31 $ — $ 2,026 U.S. agencies 167,048 657 (926) 166,779 Obligations of states and political subdivisions 1,562,631 75,555 (2,959) 1,635,227 Mortgage-backed securities - agency 1,351,964 16,029 (12,723) 1,355,270 Mortgage-backed securities - non-agency 1,428,068 22,688 (1,640) 1,449,116 Commercial mortgage-backed securities - agency 171,451 3,440 (738) 174,153 Commercial mortgage-backed securities - non-agency 253,421 37 (691) 252,767 Asset-backed securities 1,064,255 9,421 (4,410) 1,069,266 Corporate bonds 3,763 8 (29) 3,742 Total debt securities 6,004,596 127,866 (24,116) 6,108,346 Equity securities with a readily determinable fair value 19,629 — — 19,629 Total $ 6,024,225 $ 127,866 $ (24,116) $ 6,127,975 The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of September 30, 2021, and December 31, 2020, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses September 30, 2021 Obligations of states and political subdivisions $ 85,354 $ 9,656 $ — $ 95,010 $ — Total $ 85,354 $ 9,656 $ — $ 95,010 $ — December 31, 2020 Obligations of states and political subdivisions $ 88,890 $ 11,151 $ — $ 100,041 $ (51) Total $ 88,890 $ 11,151 $ — $ 100,041 $ (51) As of September 30, 2021, and December 31, 2020, HTLF had $25.3 million and $20.8 million, respectively, of accrued interest receivable, which is included in other assets on the consolidated balance sheet. HTLF 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, 2021, 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, 2021 Amortized Cost Estimated Fair Value Due in 1 year or less $ 12,487 $ 12,527 Due in 1 to 5 years 19,354 20,278 Due in 5 to 10 years 238,253 241,971 Due after 10 years 1,560,562 1,588,029 Total debt securities 1,830,656 1,862,805 Mortgage and asset-backed securities 5,564,697 5,566,341 Equity securities with a readily determinable fair value 20,790 20,790 Total investment securities $ 7,416,143 $ 7,449,936 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2021, 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, 2021 Amortized Cost Estimated Fair Value Due in 1 year or less $ 2,547 $ 2,553 Due in 1 to 5 years 42,225 44,163 Due in 5 to 10 years 34,046 39,188 Due after 10 years 6,536 9,106 Total debt securities 85,354 95,010 As of September 30, 2021, and December 31, 2020, securities with a carrying value of $1.88 billion and $2.12 billion, 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 months ended September 30, 2021 and 2020, are summarized as follows, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Proceeds from sales $ 169,108 $ 306,383 $ 799,588 $ 818,022 Gross security gains 1,591 1,825 5,880 8,687 Gross security losses 56 726 1,533 3,924 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 the securities portfolio as of September 30, 2021, and December 31, 2020. 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, 2020, and December 31, 2019 , 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, 2021 U.S. agencies $ 18,861 $ (628) 1 $ — $ — — $ 18,861 $ (628) 1 Obligations of states and political subdivisions 740,885 (18,939) 131 47,453 (2,169) 13 788,338 (21,108) 144 Mortgage-backed securities - agency 1,413,527 (21,898) 58 336,528 (11,734) 15 1,750,055 (33,632) 73 Mortgage-backed securities - non-agency 468,119 (1,241) 12 48,728 (252) 5 516,847 (1,493) 17 Commercial mortgage-backed securities - agency 80,595 (2,769) 14 — — — 80,595 (2,769) 14 Commercial mortgage-backed securities - non-agency 76,559 (218) 1 14,944 (172) 2 91,503 (390) 3 Asset-backed securities 127,455 (943) 10 21,692 (196) 8 149,147 (1,139) 18 Corporate bonds 497 (3) 1 — — — 497 (3) 1 Total temporarily impaired securities $ 2,926,498 $ (46,639) 228 $ 469,345 $ (14,523) 43 $ 3,395,843 $ (61,162) 271 December 31, 2020 U.S. agencies $ 2,981 $ (8) 5 $ 99,922 $ (918) 72 $ 102,903 $ (926) 77 Obligations of states and political subdivisions 346,598 (2,959) 49 — — — 346,598 (2,959) 49 Mortgage-backed securities - agency 653,793 (12,342) 35 31,012 (381) 3 684,805 (12,723) 38 Mortgage-backed securities - non-agency 378,843 (1,639) 17 1,622 (1) 1 380,465 (1,640) 18 Commercial mortgage-backed securities - agency 46,541 (738) 6 — — — 46,541 (738) 6 Commercial mortgage-backed securities - non-agency 100,042 (15) 2 35,428 (676) 3 135,470 (691) 5 Asset-backed securities 141,824 (643) 9 340,452 (3,767) 24 482,276 (4,410) 33 Corporate bonds 1,908 (29) 4 — — — 1,908 (29) 4 Total temporarily impaired securities $ 1,672,530 $ (18,373) 127 $ 508,436 $ (5,743) 103 $ 2,180,966 $ (24,116) 230 HTLF had no securities held to maturity with unrealized losses at September 30, 2021, or December 31, 2020. HTLF 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 HTLF 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, HTLF 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, HTLF 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 HTLF'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 HTLF 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, 2021 and 2020. The unrealized losses on HTLF'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 HTLF 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, 2021 and 2020. The credit loss model under ASC 326-30, applicable to held to maturity debt securities, requires the recognition of lifetime expected credit losses through an allowance account at the time when the security is purchased. The following tables present, in thousands, the activity in the allowance for credit losses for securities held to maturity by obligations of states and political subdivisions securities for the three and nine months ended September 30, 2021 and 2020: Three Months Ended 2021 2020 Beginning balance $ 51 $ 62 Provision (benefit) for credit losses (51) (1) Balance at period end $ — $ 61 Nine Months Ended 2021 2020 Beginning balance $ 51 $ — Impact of ASU 2016-13 adoption on January 1, — 158 Adjusted balance at January 1, 51 158 Provision (benefit) for credit losses (51) (97) Balance at period end $ — $ 61 Based on HTLF's credit loss model applicable to held to maturity debt securities, no allowance for credit losses was required at September 30, 2021 compared to $51,000 at December 31, 2020. The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of September 30, 2021 and December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: September 30, 2021 December 31, 2020 Rating AAA $ 3,236 $ — AA, AA+, AA- 61,793 64,385 A+, A, A- 14,933 18,353 BBB 4,914 4,208 Not Rated 478 1,944 Total $ 85,354 $ 88,890 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 $21.9 million at September 30, 2021 and $19.5 million at December 31, 2020. The HTLF 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. HTLF considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. HTLF evaluates impairment in these investments based on the ultimate recoverability of the par value and, at September 30, 2021, did not consider the investments to be impaired. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
LOANS | LOANS Loans as of September 30, 2021, and December 31, 2020, were as follows, in thousands: September 30, 2021 December 31, 2020 Loans receivable held to maturity: Commercial and industrial $ 2,538,369 $ 2,534,799 Paycheck Protection Program ("PPP") 409,247 957,785 Owner occupied commercial real estate 2,135,227 1,776,406 Non-owner occupied commercial real estate 2,020,487 1,921,481 Real estate construction 814,001 863,220 Agricultural and agricultural real estate 684,670 714,526 Residential real estate 840,356 840,442 Consumer 412,550 414,392 Total loans receivable held to maturity 9,854,907 10,023,051 Allowance for credit losses (117,533) (131,606) Loans receivable, net $ 9,737,374 $ 9,891,445 As of September 30, 2021, and December 31, 2020, HTLF had $37.4 million and $42.4 million, respectively, of accrued interest receivable, which is included in other assets on the consolidated balance sheet. HTLF 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, 2021, and December 31, 2020, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. If a loan no longer shares similar risk characteristics with other loans in the pool, it is evaluated on an individual basis and is not included in the collective evaluation. Lending relationships with $500,000 or more of total exposure and are on nonaccrual are individually assessed using a collateral dependency calculation. All other loans are collectively evaluated for losses. 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, 2021 Commercial and industrial $ 4,710 $ 23,198 $ 27,908 $ 15,524 $ 2,522,845 $ 2,538,369 PPP — — — — 409,247 409,247 Owner occupied commercial real estate 110 19,018 19,128 10,166 2,125,061 2,135,227 Non-owner occupied commercial real estate 2,847 19,268 22,115 19,314 2,001,173 2,020,487 Real estate construction — 23,698 23,698 — 814,001 814,001 Agricultural and agricultural real estate 3,062 3,264 6,326 13,917 670,753 684,670 Residential real estate — 9,238 9,238 — 840,356 840,356 Consumer — 9,120 9,120 — 412,550 412,550 Total $ 10,729 $ 106,804 $ 117,533 $ 58,921 $ 9,795,986 $ 9,854,907 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, 2020 Commercial and industrial $ 4,077 $ 34,741 $ 38,818 $ 16,578 $ 2,518,221 $ 2,534,799 PPP — — — — 957,785 957,785 Owner occupied commercial real estate 111 19,890 20,001 11,174 1,765,232 1,776,406 Non-owner occupied commercial real estate 3,250 17,623 20,873 13,490 1,907,991 1,921,481 Real estate construction — 20,080 20,080 — 863,220 863,220 Agricultural and agricultural real estate 1,988 5,141 7,129 15,453 699,073 714,526 Residential real estate — 11,935 11,935 535 839,907 840,442 Consumer — 12,770 12,770 — 414,392 414,392 Total $ 9,426 $ 122,180 $ 131,606 $ 57,230 $ 9,965,821 $ 10,023,051 HTLF had $13.2 million of troubled debt restructured loans at September 30, 2021, of which $11.4 million were classified as nonaccrual and $1.8 million were accruing according to the restructured terms. HTLF had $6.2 million of troubled debt restructured loans at December 31, 2020, of which $3.8 million were classified as nonaccrual and $2.4 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- months ended September 30, 2021, and September 30, 2020, dollars in thousands: Three Months Ended 2021 2020 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 2021 2020 Number Pre- Post- Number Pre- Post- Commercial and industrial — $ — $ — 1 $ 20 $ 20 PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 2 7,850 7,850 1 9,434 9,434 Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Nine Months Ended 2021 2020 Number Pre- Post- Number Pre- Post- Residential real estate — — — 2 92 98 Consumer — — — — — — Total 2 $ 7,850 $ 7,850 4 $ 9,546 $ 9,552 At September 30, 2021, 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. The following tables show troubled debt restructured loans for which there was a payment default during the three- and nine- months ended September 30, 2021, and September 30, 2020, that had been modified during the twelve-month period prior to default. With Payment Defaults During the Three Months Ended September 30, 2021 2020 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, 2021 2020 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 Consumer — — — — Total — $ — 1 $ 236 HTLF'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 rated 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 HTLF 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. HTLF had no loans classified as "loss" or "doubtful" as of September 30, 2021, and December 31, 2020. The following tables show the risk category of loans by loan category and year of origination as of September 30, 2021, and December 31, 2020, in thousands: As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial and industrial Pass $ 460,258 $ 401,606 $ 239,419 $ 100,840 $ 179,241 $ 343,238 $ 602,155 $ 2,326,757 Watch 13,274 14,096 13,982 11,230 6,363 16,657 30,157 105,759 Substandard 14,511 9,315 14,949 8,858 10,880 16,921 30,419 105,853 Commercial and industrial total $ 488,043 $ 425,017 $ 268,350 $ 120,928 $ 196,484 $ 376,816 $ 662,731 $ 2,538,369 PPP Pass $ 297,218 $ 59,481 $ — $ — $ — $ — $ — $ 356,699 Watch 19,656 11,210 — — — — — 30,866 Substandard 19,434 2,248 — — — — — 21,682 PPP total $ 336,308 $ 72,939 $ — $ — $ — $ — $ — $ 409,247 Owner occupied commercial real estate Pass $ 679,698 $ 378,366 $ 337,572 $ 207,982 $ 128,973 $ 220,013 $ 29,446 $ 1,982,050 Watch 2,517 16,981 13,277 18,264 15,618 9,216 1,853 77,726 Substandard 4,490 17,518 13,338 2,866 13,857 21,632 1,750 75,451 Owner occupied commercial real estate total $ 686,705 $ 412,865 $ 364,187 $ 229,112 $ 158,448 $ 250,861 $ 33,049 $ 2,135,227 Non-owner occupied commercial real estate Pass $ 394,782 $ 316,992 $ 353,092 $ 274,618 $ 166,123 $ 199,072 $ 37,518 $ 1,742,197 Watch 12,832 17,170 48,377 35,098 7,595 35,783 — 156,855 Substandard 18,113 15,291 22,011 2,828 14,848 48,036 308 121,435 Non-owner occupied commercial real estate total $ 425,727 $ 349,453 $ 423,480 $ 312,544 $ 188,566 $ 282,891 $ 37,826 $ 2,020,487 Real estate construction Pass $ 240,048 $ 282,023 $ 177,594 $ 15,228 $ 8,501 $ 9,628 $ 13,269 $ 746,291 Watch 2,191 876 15,006 47,267 — — 112 65,452 Substandard — 50 47 1,992 — 169 — 2,258 Real estate construction total $ 242,239 $ 282,949 $ 192,647 $ 64,487 $ 8,501 $ 9,797 $ 13,381 $ 814,001 Agricultural and agricultural real estate Pass $ 174,014 $ 114,928 $ 66,869 $ 37,763 $ 24,751 $ 39,479 $ 128,684 $ 586,488 As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Watch 5,343 10,435 5,967 3,013 38 3,711 6,840 35,347 Substandard 7,559 6,354 8,570 18,243 3,937 9,826 8,346 62,835 Agricultural and agricultural real estate total $ 186,916 $ 131,717 $ 81,406 $ 59,019 $ 28,726 $ 53,016 $ 143,870 $ 684,670 Residential real estate Pass $ 251,931 $ 103,529 $ 58,179 $ 68,551 $ 50,817 $ 244,641 $ 32,474 $ 810,122 Watch 1,086 4,650 1,205 1,503 807 5,043 — 14,294 Substandard 4,085 537 496 2,555 1,185 7,082 — 15,940 Residential real estate total $ 257,102 $ 108,716 $ 59,880 $ 72,609 $ 52,809 $ 256,766 $ 32,474 $ 840,356 Consumer Pass $ 57,680 $ 22,845 $ 16,732 $ 10,290 $ 11,722 $ 18,442 $ 265,241 $ 402,952 Watch 912 196 281 1,368 190 542 1,387 4,876 Substandard 891 359 511 259 335 1,742 625 4,722 Consumer total $ 59,483 $ 23,400 $ 17,524 $ 11,917 $ 12,247 $ 20,726 $ 267,253 $ 412,550 Total Pass $ 2,555,629 $ 1,679,770 $ 1,249,457 $ 715,272 $ 570,128 $ 1,074,513 $ 1,108,787 $ 8,953,556 Total Watch 57,811 75,614 98,095 117,743 30,611 70,952 40,349 491,175 Total Substandard 69,083 51,672 59,922 37,601 45,042 105,408 41,448 410,176 Total Loans $ 2,682,523 $ 1,807,056 $ 1,407,474 $ 870,616 $ 645,781 $ 1,250,873 $ 1,190,584 $ 9,854,907 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 557,853 $ 340,809 $ 168,873 $ 215,696 $ 101,010 $ 337,834 $ 541,627 $ 2,263,702 Watch 41,574 24,676 19,672 14,262 8,072 2,474 49,432 160,162 Substandard 23,024 16,274 8,897 15,717 9,098 19,537 18,388 110,935 Commercial and industrial total $ 622,451 $ 381,759 $ 197,442 $ 245,675 $ 118,180 $ 359,845 $ 609,447 $ 2,534,799 PPP Pass $ 880,709 $ — $ — $ — $ — $ — $ — $ 880,709 Watch 22,533 — — — — — — 22,533 Substandard 54,543 — — — — — — 54,543 PPP total $ 957,785 $ — $ — $ — $ — $ — $ — $ 957,785 Owner occupied commercial real estate Pass $ 400,662 $ 369,401 $ 300,242 $ 167,470 $ 107,234 $ 213,780 $ 33,759 $ 1,592,548 Watch 15,345 13,764 22,488 20,811 8,717 15,282 4,311 100,718 Substandard 15,914 9,522 12,164 14,147 8,580 21,708 1,105 83,140 Owner occupied commercial real estate total $ 431,921 $ 392,687 $ 334,894 $ 202,428 $ 124,531 $ 250,770 $ 39,175 $ 1,776,406 Non-owner occupied commercial real estate Pass $ 334,722 $ 411,301 $ 305,456 $ 194,101 $ 108,070 $ 233,153 $ 24,466 $ 1,611,269 Watch 22,826 55,225 24,718 18,724 20,954 45,672 5,114 193,233 Substandard 30,899 15,035 23,290 17,046 9,147 21,060 502 116,979 Non-owner occupied commercial real estate total $ 388,447 $ 481,561 $ 353,464 $ 229,871 $ 138,171 $ 299,885 $ 30,082 $ 1,921,481 Real estate construction Pass $ 311,625 $ 309,678 $ 157,171 $ 12,625 $ 6,954 $ 5,110 $ 21,431 $ 824,594 Watch 2,105 26,659 2,403 332 55 388 1,295 33,237 Substandard 196 2,760 2,036 — 39 358 — 5,389 Real estate construction total $ 313,926 $ 339,097 $ 161,610 $ 12,957 $ 7,048 $ 5,856 $ 22,726 $ 863,220 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Agricultural and agricultural real estate Pass $ 171,578 $ 90,944 $ 62,349 $ 39,252 $ 17,626 $ 37,696 $ 148,456 $ 567,901 Watch 20,500 16,202 8,854 2,448 3,515 3,157 12,282 66,958 Substandard 17,403 7,044 23,519 6,758 3,917 9,952 11,074 79,667 Agricultural and agricultural real estate total $ 209,481 $ 114,190 $ 94,722 $ 48,458 $ 25,058 $ 50,805 $ 171,812 $ 714,526 Residential real estate Pass $ 153,017 $ 99,440 $ 118,854 $ 83,534 $ 63,477 $ 244,852 $ 33,467 $ 796,641 Watch 3,986 4,507 2,188 1,896 3,117 8,525 — 24,219 Substandard 980 442 2,507 1,528 884 12,141 1,100 19,582 Residential real estate total $ 157,983 $ 104,389 $ 123,549 $ 86,958 $ 67,478 $ 265,518 $ 34,567 $ 840,442 Consumer Pass $ 37,037 $ 27,646 $ 18,811 $ 15,034 $ 4,009 $ 19,483 $ 280,996 $ 403,016 Watch 168 352 647 340 82 646 1,622 3,857 Substandard 481 959 1,884 500 897 1,976 822 7,519 Consumer total $ 37,686 $ 28,957 $ 21,342 $ 15,874 $ 4,988 $ 22,105 $ 283,440 $ 414,392 Total Pass $ 2,847,203 $ 1,649,219 $ 1,131,756 $ 727,712 $ 408,380 $ 1,091,908 $ 1,084,202 $ 8,940,380 Total Watch 129,037 141,385 80,970 58,813 44,512 76,144 74,056 604,917 Total Substandard 143,440 52,036 74,297 55,696 32,562 86,732 32,991 477,754 Total Loans $ 3,119,680 $ 1,842,640 $ 1,287,023 $ 842,221 $ 485,454 $ 1,254,784 $ 1,191,249 $ 10,023,051 Included in the nonpass loans at September 30, 2021 and December 31, 2020 were $52.5 million and $77.1 million, respectively, of nonpass PPP loans as a result of risk ratings on non-PPP related credits. HTLF's risk rating methodology assigns a risk rating to the whole lending relationship. HTLF has no allowance recorded related to the PPP loans because of the 100% government guarantee. As of September 30, 2021, HTLF had $712,000 of loans secured by residential real estate property that were in the process of foreclosure. The following table sets forth information regarding accruing and nonaccrual loans at September 30, 2021, and December 31, 2020, in thousands: Accruing Loans 30-59 60-89 90 Days or Total Current Nonaccrual Total Loans September 30, 2021 Commercial and industrial $ 3,800 $ 653 $ 727 $ 5,180 $ 2,513,785 $ 19,404 $ 2,538,369 PPP — — — — 409,247 — 409,247 Owner occupied commercial real estate 1,255 952 6 2,213 2,120,755 12,259 2,135,227 Non-owner occupied commercial real estate 41 26 — 67 1,999,904 20,516 2,020,487 Real estate construction 50 101 52 203 813,343 455 814,001 Agricultural and agricultural real estate 625 — — 625 668,065 15,980 684,670 Residential real estate 2,168 903 76 3,147 825,013 12,196 840,356 Consumer 1,112 27 — 1,139 409,846 1,565 412,550 Total gross loans receivable held to maturity $ 9,051 $ 2,662 $ 861 $ 12,574 $ 9,759,958 $ 82,375 $ 9,854,907 December 31, 2020 Commercial and industrial $ 5,825 $ 2,322 $ 720 $ 8,867 $ 2,504,170 $ 21,762 $ 2,534,799 PPP 1 — — 1 957,784 — 957,785 Owner occupied commercial real estate 2,815 167 — 2,982 1,759,649 13,775 1,776,406 Non-owner occupied commercial real estate 2,143 2,674 — 4,817 1,902,003 14,661 1,921,481 Real estate construction 2,446 96 — 2,542 859,784 894 863,220 Agricultural and agricultural real estate 1,688 — — 1,688 694,150 18,688 714,526 Residential real estate 1,675 83 — 1,758 825,047 13,637 840,442 Consumer 807 139 — 946 409,477 3,969 414,392 Total gross loans receivable held to maturity $ 17,400 $ 5,481 $ 720 $ 23,601 $ 9,912,064 $ 87,386 $ 10,023,051 Loans delinquent 30 to 89 days as a percent of total loans were 0.12% at September 30, 2021, compared to 0.23% at December 31, 2020. Changes in credit risk are monitored on a continuous basis as part of relationship management, and changes in risk ratings are made when identified. All individually assessed loans are reviewed at least annually. HTLF recognized $0 of interest income on nonaccrual loans during the three and nine months ended September 30, 2021 and September 30, 2020. As of September 30, 2021, and December 31, 2020, HTLF had $28.6 million and $32.5 million of nonaccrual loans with no related allowance, respectively. On December 4, 2020, HTLF's Arizona Bank & Trust subsidiary completed the acquisition of certain assets and substantially all of the deposits and certain other liabilities of Johnson Bank's Arizona operations, headquartered in Racine, Wisconsin. As of December 4, 2020, the Johnson Bank branches acquired had gross loans with a fair value of $150.7 million. On December 4, 2020, HTLF completed the acquisition of AimBank, headquartered in Levelland, Texas. As of December 4, 2020, AimBank had gross loans with a fair value of $1.09 billion. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
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- months ended September 30, 2021, and September 30, 2020, 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, 2021 $ 31,332 $ — $ 19,990 $ 22,828 $ 19,580 $ 7,160 $ 9,741 $ 10,095 $ 120,726 Charge-offs (106) — (119) — — (195) (22) (725) (1,167) Recoveries 1,553 — 46 20 2 466 2 333 2,422 Provision (benefit) (4,871) — (789) (733) 4,116 (1,105) (483) (583) (4,448) Balance at September 30, 2021 $ 27,908 $ — $ 19,128 $ 22,115 $ 23,698 $ 6,326 $ 9,238 $ 9,120 $ 117,533 Commercial 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, 2020 $ 38,818 $ — $ 20,001 $ 20,873 $ 20,080 $ 7,129 $ 11,935 $ 12,770 $ 131,606 Charge-offs (1,896) — (232) (1,637) (10) (870) (113) (2,032) (6,790) Recoveries 2,111 — 143 33 8 487 7 826 3,615 Provision (benefit) (11,125) — (784) 2,846 3,620 (420) (2,591) (2,444) (10,898) Balance at September 30, 2021 $ 27,908 $ — $ 19,128 $ 22,115 $ 23,698 $ 6,326 $ 9,238 $ 9,120 $ 117,533 Commercial PPP 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, 2020 $ 32,518 $ — $ 23,402 $ 10,161 $ 28,667 $ 5,701 $ 9,304 $ 10,184 $ 119,937 Charge-offs (6,888) — (13,328) (25) — (936) (54) (522) (21,753) Recoveries 283 — 1 10 2 1 2 153 452 Provision (benefit) 8,668 — 1,154 1,981 (7,882) 576 419 (175) 4,741 Balance at September 30, 2020 $ 34,581 $ 32,531 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,342 $ 9,671 $ 9,640 $ 103,377 Commercial 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 $ 34,207 $ — $ 7,921 $ 7,584 $ 8,677 $ 5,680 $ 1,504 $ 4,822 $ 70,395 Impact of ASU 2016-13 adoption (272) — (114) (2,617) 6,335 (387) 4,817 4,309 12,071 Adjusted balance at January 1, 2020 33,935 — 7,807 4,967 15,012 5,293 6,321 9,131 82,466 Charge-offs (14,655) — (13,541) (44) (105) (1,190) (368) (1,715) (31,618) Recoveries 893 — 193 18 217 827 97 671 2,916 Provision (benefit) 14,408 — 16,770 7,186 5,663 412 3,621 1,553 49,613 Balance at September 30, 2020 $ 34,581 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,342 $ 9,671 $ 9,640 $ 103,377 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. Changes in the allowance for credit losses on unfunded commitments for the three and nine months ended September 30, 2021 and September 30, 2020, were as follows: For the Three Months Ended September 30, 2021 2020 Balance at June 30, $ 14,002 $ 17,392 Provision (benefit) (35) (3,062) Balance at September 30, $ 13,967 $ 14,330 For the Nine Months Ended September 30, 2021 2020 Balance at December 31, $ 15,280 $ 248 Impact of ASU 2016-13 adoption on January 1, 2020 — 13,604 Adjusted balance at January 1, 15,280 13,852 Provision (benefit) (1,313) 478 Balance at September 30, $ 13,967 $ 14,330 |
GOODWILL, CORE DEPOSIT PREMIUM
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS | GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS HTLF had goodwill of $576.0 million at both September 30, 2021 and December 31, 2020. HTLF conducts its annual internal assessment of the goodwill both at the consolidated level and at its subsidiaries as of September 30. Due to the COVID-19 pandemic and economic conditions, HTLF performed an interim quantitative assessment of goodwill in the second quarter of 2020, which was the most recent annual assessment, and there was no goodwill impairment. HTLF recorded $91.4 million of goodwill and $3.1 million of core deposit intangible in connection with the acquisition of AimBank, headquartered in Levelland, Texas on December 4, 2020. HTLF recorded $38.4 million of goodwill and $1.3 million of core deposit intangible in connection with the acquisition of certain assets and substantially all of the deposits and certain other liabilities of Johnson Bank's Arizona operations, headquartered in Racine, Wisconsin, on December 4, 2020. The core deposit intangible recorded with the AimBank 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 AimBank 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 intangible and goodwill recorded with the Johnson Bank transaction are deductible for tax purposes, and the core deposit intangible is expected to be amortized over a period of 10 years on an accelerated basis. HTLF'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, 2021, and December 31, 2020, are presented in the table below, in thousands: September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 101,185 $ 66,169 $ 35,016 $ 101,185 $ 58,970 $ 42,215 Customer relationship intangibles 1,177 1,036 141 1,177 1,009 168 Mortgage servicing rights 12,323 6,522 5,801 11,268 6,079 5,189 Commercial servicing rights 7,054 6,504 550 7,054 6,191 863 Total $ 121,739 $ 80,231 $ 41,508 $ 120,684 $ 72,249 $ 48,435 The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Customer Mortgage Commercial Three months ending December 31, 2021 $ 2,160 $ 9 $ 304 $ 51 $ 2,524 Year ending December 31, 2022 7,702 34 1,374 181 9,291 2023 6,739 33 1,178 130 8,080 2024 5,591 33 982 91 6,697 2025 4,700 32 785 97 5,614 2026 3,533 — 589 — 4,122 Thereafter 4,591 — 589 — 5,180 Total $ 35,016 $ 141 $ 5,801 $ 550 $ 41,508 Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of September 30, 2021. HTLF's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were approximately $711.6 million at September 30, 2021, compared to $743.3 million at December 31, 2020. Custodial escrow balances maintained in connection with the mortgage loan servicing portfolio were approximately $16.2 million at September 30, 2021, and $5.7 million at December 31, 2020. At September 30, 2021, the fair value of the mortgage servicing rights was estimated at $5.8 million compared to $5.2 million at December 31, 2020. 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 14.80% for the September 30, 2021, valuation compared to 16.20% for the December 31, 2020 valuation. The discount rate was 9.02% for both September 30, 2021 and December 31, 2020. The average capitalization rate for the first nine months of 2021 ranged from 76 to 120 basis points compared to a range of 76 to 116 basis points for the first nine months of 2020. Fees collected for the servicing of mortgage loans for others were $446,000 and $443,000 for the quarters ended September 30, 2021 and September 30, 2020, respectively. Fees collected for the servicing of mortgage loans for others were $1.4 million and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively. The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the nine months ended September 30, 2021, and September 30, 2020: 2021 2020 Balance at January 1, $ 5,189 $ 5,621 Originations 1,055 2,571 Amortization (1,029) (1,693) Valuation adjustment 586 (1,676) Balance at period end $ 5,801 $ 4,823 Mortgage servicing rights, net to servicing portfolio 0.82 % 0.68 % HTLF's commercial servicing portfolio is comprised of loans guaranteed by the United States Small Business Administration ("SBA") and United States Department of Agriculture that have been sold with servicing retained by HTLF, which totaled $52.8 million at September 30, 2021 and $66.2 million at December 31, 2020. The commercial servicing rights portfolio is separated into two tranches at each respective HTLF 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 $102,000 and $70,000 for the quarters ended September 30, 2021 and September 30, 2020, respectively, and $396,000 and $242,000 for the nine months ended September 30, 2021 and September 30, 2020, respectively. The fair value of each commercial servicing rights portfolio is calculated based upon a discounted cash flow analysis. Cash flow assumptions, including prepayment speeds and servicing costs, are considered in the calculation. The range of average constant prepayment rates for the valuations was 13.45% to 16.85% as of September 30, 2021 compared to 14.95% to 19.25% as of December 31, 2020. The discount rate range was 8.02% to 9.42% for the September 30, 2021, valuations compared to 7.70% to 12.88% for the December 31, 2020 valuations. The capitalization rate for 2020 ranged from 310 to 445 basis points. The total fair value of the commercial servicing rights was estimated at $958,000 as of September 30, 2021, and $1.3 million as of December 31, 2020. The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the nine months ended September 30, 2021, and September 30, 2020: 2021 2020 Balance at January 1, $ 863 $ 1,115 Originations — 62 Amortization (313) (248) Balance at period end $ 550 $ 929 Fair value of commercial servicing rights $ 958 $ 1,497 Commercial servicing rights, net to servicing portfolio 1.04 % 1.31 % Mortgage and commercial servicing rights are initially recorded at fair value in net gains on sale of loans held for sale when they are capitalized 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 HTLF 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 HTLF subsidiary. At September 30, 2021, a $435,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $1.7 million valuation allowance was required on the mortgage servicing rights 30-year tranche. At December 31, 2020, a $422,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $1.4 million valuation allowance was required on the mortgage servicing rights 30-year tranche. At both September 30, 2021 and December 31, 2020, 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 September 30, 2021, and December 31, 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 September 30, 2021 $ 1,622 $ 1,187 $ 435 $ 6,340 $ 4,614 $ 1,726 December 31, 2020 $ 1,522 $ 1,100 $ 422 $ 5,445 $ 4,089 $ 1,356 The following table summarizes, in thousands, the book value and the fair value of each tranche of the commercial servicing rights at September 30, 2021, and December 31, 2020. Book Value Fair Value Book Value Fair Value September 30, 2021 $ 51 $ 211 $ 499 $ 747 December 31, 2020 $ 87 $ 203 $ 776 $ 1,085 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS HTLF uses derivative financial instruments as part of its interest rate risk management strategy. As part of the strategy, HTLF 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. HTLF's current strategy includes the use of interest rate swaps, interest rate lock commitments and forward sales of mortgage securities. In addition, HTLF is facilitating back-to-back loan swaps to assist customers in managing interest rate risk. HTLF'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. HTLF is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. HTLF minimizes this risk by entering into derivative contracts with counterparties that meet HTLF’s credit standards, and the contracts contain collateral provisions protecting the at-risk party. HTLF has not experienced any losses from nonperformance by these counterparties. HTLF 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 the credit ratings of each counterparty. HTLF was required to pledge cash of $2.7 million as collateral at September 30, 2021 compared to $3.8 million at December 31, 2020. At both September 30, 2021 and December 31, 2020, no collateral was required to be pledged by HTLF's counterparties. HTLF'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 HTLF 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, HTLF entered into various interest rate swap agreements. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are received or made on HTLF's variable-rate liabilities. For the nine months ended September 30, 2021, 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 (loss) to interest expense totaling $1.4 million. HTLF entered into forward starting interest rate swap transactions to effectively convert Heartland Financial Statutory Trust VI and VII, which total $40.0 million, from variable rate subordinated debentures to fixed rate debt. For accounting purposes, these swap transactions were designated as cash flow hedges of the changes in LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on $40.0 million of HTLF's subordinated debentures that reset quarterly on a specified reset date. During the third quarter of 2021, the interest rate swap transactions associated with Heartland Financial Statutory VI and VII were terminated, and the debt was converted to variable rate subordinated debentures. In addition, HTLF had two swap transactions associated with an unaffiliated bank, one of which matured in the second quarter, and the other was terminated in the third quarter. The underlying debt with the unaffiliated bank was paid off in the third quarter of 2021. For the next twelve months, HTLF estimates that cash payments and reclassification from accumulated other comprehensive income (loss) to interest expense related to the terminated swaps will total $733,000. At September 30, 2021, HTLF had no derivative instruments designated as cash flow hedges. The table below identifies the balance sheet category and fair values of HTLF's derivative instruments designated as cash flow hedges at December 31, 2020, in thousands: Notional Fair Balance Receive Weighted Maturity December 31, 2020 Interest rate swap $ 25,000 $ (127) Other liabilities 0.229 % 2.255 % 03/17/2021 Interest rate swap 21,667 (91) Other liabilities 2.649 3.674 05/10/2021 Interest rate swap 22,750 (2,220) Other liabilities 2.643 5.425 07/24/2028 Interest rate swap 20,000 (1,482) Other liabilities 0.217 2.390 06/15/2024 Interest rate swap 20,000 (1,385) Other liabilities 0.225 2.352 03/01/2024 Interest rate swap 6,000 (50) Other liabilities 0.217 1.866 06/15/2021 Interest rate swap 3,000 (25) Other liabilities 0.241 1.878 06/30/2021 The table below identifies the gains and losses recognized on HTLF's derivative instruments designated as cash flow hedges for the three- and nine-months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Effective Portion Gain (loss) recognized in other comprehensive income (loss) on interest rate swaps $ 3,792 $ (604) $ 5,380 $ (3,359) Gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) on interest rate swaps 358 595 1,403 1,195 Fair Value Hedges HTLF uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. HTLF 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. HTLF 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. HTLF was required to pledge $3.8 million and $4.2 million of cash as collateral for these fair value hedges at September 30, 2021, and December 31, 2020, respectively. The table below identifies the notional amount, fair value and balance sheet category of HTLF's fair value hedges at September 30, 2021, and December 31, 2020, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2021 Fair value hedges $ 16,829 $ (1,550) Other liabilities December 31, 2020 Fair value hedges $ 20,841 $ (2,480) Other liabilities The table below identifies the gains and losses recognized on HTLF's fair value hedges for the three- and nine-months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Gain (loss) recognized in interest income on fair value hedges $ 35 $ 26 $ 930 $ (1,647) Embedded Derivatives HTLF has fixed rate loans with embedded derivatives. These 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 the embedded derivatives at September 30, 2021, and December 31, 2020, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2021 Embedded derivatives $ 8,857 $ 431 Other assets December 31, 2020 Embedded derivatives $ 9,198 $ 680 Other assets The table below identifies the gains and losses recognized on HTLF's embedded derivatives for the three- and nine- months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Gain (loss) recognized in other noninterest income on embedded derivatives $ (66) $ (69) $ (249) $ 293 Back-to-Back Loan Swaps HTLF has interest rate swap loan relationships with customers to meet their financing needs. Upon entering into these loan swaps, HTLF 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. HTLF was required to post $28.6 million and $46.5 million as of September 30, 2021, and December 31, 2020, respectively, as collateral related to these back-to-back swaps. HTLF's counterparties were required to pledge $0 at both September 30, 2021, and December 31, 2020. 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, 2021 and September 30, 2020, no gain or loss was recognized. The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at September 30, 2021, and December 31, 2020, in thousands: Notional Fair Balance Sheet Weighted Weighted September 30, 2021 Customer interest rate swaps $ 428,782 $ 25,801 Other assets 4.49 % 2.41 % Customer interest rate swaps 428,782 (25,801) Other liabilities 2.41 4.49 December 31, 2020 Customer interest rate swaps $ 440,719 $ 43,422 Other assets 4.46 % 2.46 % Customer interest rate swaps 440,719 (43,422) Other liabilities 2.46 4.46 Other Free Standing Derivatives HTLF 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. HTLF 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. HTLF was required to pledge no collateral at both September 30, 2021, and December 31, 2020. HTLF's counterparties were required to pledge no collateral at both September 30, 2021 and December 31, 2020, as collateral for these forward commitments. HTLF 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 HTLF's other free standing derivative instruments not designated as hedging instruments at September 30, 2021, and December 31, 2020, in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2021 Interest rate lock commitments (mortgage) Other assets $ 37,209 $ 1,204 Forward commitments Other assets 47,500 278 Forward commitments Other liabilities 19,500 (59) Undesignated interest rate swaps Other liabilities 8,857 (431) December 31, 2020 Interest rate lock commitments (mortgage) Other assets $ 42,078 $ 1,827 Forward commitments Other assets — — Forward commitments Other liabilities 86,500 (697) Undesignated interest rate swaps Other liabilities 9,198 (680) HTLF recognizes gains and losses on other free standing derivatives in two separate income statement categories. Interest rate lock commitments and forward commitments are recognized in net gains on sale of loans held for sale and undesignated interest rate swaps are recognized in other noninterest income. The table below identifies the gains and losses recognized in income on HTLF's other free standing derivative instruments not designated as hedging instruments for the three- and nine- months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest rate lock commitments (mortgage) $ (189) $ 249 $ (1,924) $ 3,243 Forward commitments 413 (44) 916 (228) Undesignated interest rate swaps 66 69 249 (293) |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE HTLF 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, HTLF 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. 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 HTLF'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, HTLF classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. Loans Held to Maturity HTLF 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 HTLF values premises, furniture and equipment held for sale based on third-party appraisals less estimated disposal costs. HTLF 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. HTLF 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. HTLF 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 HTLF. HTLF 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. HTLF classifies commercial servicing rights as nonrecurring with Level 3 measurement inputs. Derivative Financial Instruments HTLF'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, HTLF 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, HTLF has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although HTLF 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, 2021, and December 31, 2020, HTLF 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, HTLF has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Interest rate lock commitments HTLF 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 HTLF 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. HTLF 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. HTLF 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 HTLFs assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021, and December 31, 2020, 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, 2021 Assets Securities available for sale U.S. treasuries $ 1,013 $ 1,013 $ — $ — U.S. agencies 35,033 — 35,033 — Obligations of states and political subdivisions 1,823,465 — 1,823,465 — Mortgage-backed securities - agency 2,371,264 — 2,371,264 — Mortgage-backed securities - non-agency 1,627,903 — 1,627,903 — Commercial mortgage-backed securities - agency 127,861 — 127,861 — Commercial mortgage-backed securities - non-agency 561,667 — 561,667 — Asset-backed securities 877,646 — 877,646 — Corporate bonds 3,294 — 3,294 — Equity securities with a readily determinable fair value 20,790 — 20,790 — Derivative financial instruments (1) 26,232 — 26,232 — Interest rate lock commitments 1,204 — — 1,204 Forward commitments 278 — 278 — Total assets at fair value $ 7,477,650 $ 1,013 $ 7,475,433 $ 1,204 Liabilities Derivative financial instruments (2) $ 27,782 $ — $ 27,782 $ — Forward commitments 59 — 59 — Total liabilities at fair value $ 27,841 $ — $ 27,841 $ — December 31, 2020 Assets Securities available for sale U.S. treasuries $ 2,026 $ 2,026 $ — $ — U.S. agencies 166,779 — 166,779 — Obligations of states and political subdivisions 1,635,227 — 1,635,227 — Mortgage-backed securities - agency 1,355,270 — 1,355,270 — Mortgage-backed securities - non-agency 1,449,116 — 1,449,116 — Commercial mortgage-backed securities - agency 174,153 — 174,153 — Commercial mortgage-backed securities - non-agency 252,767 — 252,767 — Asset-backed securities 1,069,266 — 1,069,266 — Corporate bonds 3,742 — 3,742 — Equity securities with a readily determinable fair value 19,629 — 19,629 — Derivative financial instruments (1) 44,102 — 44,102 — Interest rate lock commitments 1,827 — — 1,827 Total assets at fair value $ 6,173,904 $ 2,026 $ 6,170,051 $ 1,827 Liabilities Derivative financial instruments (2) $ 51,962 $ — $ 51,962 $ — Forward commitments 697 — 697 — Total liabilities at fair value $ 52,659 $ — $ 52,659 $ — (1) Includes embedded derivatives, back-to-back loan swaps and fair value 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 HTLF's assets that are measured at fair value on a nonrecurring basis, in thousands: Fair Value Measurements at September 30, 2021 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 10,270 $ — $ — $ 10,270 $ 248 Owner occupied commercial real estate 3,552 — — 3,552 — Non-owner occupied commercial real estate 15,212 — — 15,212 1,637 Agricultural and agricultural real estate 9,145 — — 9,145 — Total collateral dependent individually assessed loans $ 38,179 $ — $ — $ 38,179 $ 1,885 Loans held for sale $ 37,078 $ — $ 37,078 $ — $ (1,335) Other real estate owned 4,744 — — 4,744 (119) Premises, furniture and equipment held for sale 2,699 — — 2,699 (86) Servicing rights 5,801 — — 5,801 (586) Fair Value Measurements at Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 11,256 $ — $ — $ 11,256 $ 451 Owner occupied commercial real estate 5,874 — — 5,874 11,631 Non-owner occupied commercial real estate 4,907 — — 4,907 — Agricultural and agricultural real estate 12,451 — — 12,451 — Total collateral dependent individually assessed loans $ 34,488 $ — $ — $ 34,488 $ 12,082 Loans held for sale $ 57,949 $ — $ 57,949 $ — $ (982) Other real estate owned 6,624 — — 6,624 1,044 Premises, furniture and equipment held for sale 6,499 — — 6,499 3,288 Servicing rights 5,189 — — 5,189 1,778 The following tables present additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which HTLF has utilized Level 3 inputs to determine fair value, in thousands: Fair Value Valuation Unobservable Range Interest rate lock commitments $ 1,204 Discounted cash flows Closing ratio 0-99% (88%) (1) Other real estate owned 4,744 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,801 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,699 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial 10,270 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 3,552 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Non-owner occupied commercial real estate 15,212 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Agricultural and agricultural real estate 9,145 Modified appraised value Third party appraisal (2) Appraisal 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 Valuation Unobservable Range Interest rate lock commitments $ 1,827 Discounted cash flows Closing ratio 0-99% (86%) (1) Other real estate owned 6,624 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,189 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 6,499 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial and industrial 11,256 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Fair Value Valuation Unobservable Range Owner occupied commercial real estate $ 5,874 Modified appraised value Third party appraisal (2) Appraisal discount 0-12% (3) Non-owner occupied commercial real estate 4,907 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Agricultural and agricultural real estate 12,451 Modified appraised value Third party appraisal (2) Appraisal 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, $ 1,827 $ 681 Total net gains included in earnings (1,924) 2,803 Issuances 12,548 17,221 Settlements (11,247) (18,878) Balance at period end $ 1,204 $ 1,827 Gains included in gains (losses) on sale of loans held for sale attributable to interest rate lock commitments held at September 30, 2021, and December 31, 2020, were $1.2 million and $1.8 million, respectively. The table below is a summary of the estimated fair value of HTLF's financial instruments (as defined by ASC 825) as of September 30, 2021, and December 31, 2020, 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. HTLF does not believe that the estimated information presented herein is representative of the earnings power or value of HTLF. 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 HTLF 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, 2021 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 327,405 $ 327,405 $ 327,405 $ — $ — Time deposits in other financial institutions 3,138 3,138 3,138 — — Securities: Carried at fair value 7,449,936 7,449,936 1,013 7,448,923 — Held to maturity 85,354 95,010 — 95,010 — Other investments 83,332 83,332 — 83,332 — Loans held for sale 37,078 37,078 — 37,078 — Loans, net: Commercial and industrial 2,510,461 2,498,314 — 2,488,044 10,270 PPP 409,247 409,247 — 409,247 — Owner occupied commercial real estate 2,116,099 2,119,011 — 2,115,459 3,552 Non-owner occupied commercial real estate 1,998,372 2,008,824 — 1,993,612 15,212 Real estate construction 790,303 803,298 — 803,298 — Agricultural and agricultural real estate 678,344 680,701 — 671,556 9,145 Residential real estate 831,118 831,021 — 831,021 — Consumer 403,430 408,147 — 408,147 — Total Loans, net 9,737,374 9,758,563 — 9,720,384 38,179 Cash surrender value on life insurance 190,576 190,576 — 190,576 — Derivative financial instruments (1) 26,232 26,232 — 26,232 — Interest rate lock commitments 1,204 1,204 — — 1,204 Forward commitments 278 278 — 278 — Financial liabilities: Deposits Demand deposits 6,537,722 6,537,722 — 6,537,722 — Savings deposits 8,416,204 8,416,204 — 8,416,204 — Time deposits 1,068,317 1,070,957 — 1,070,957 — Short term borrowings 265,620 265,620 — 265,620 — Other borrowings 371,765 372,902 — 372,902 — Derivative financial instruments (2) 27,782 27,782 — 27,782 — Forward commitments 59 59 — 59 — (1) Includes embedded derivatives, back-to-back loan swaps and fair value hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps and free standing derivative instruments. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 337,903 $ 337,903 $ 337,903 $ — $ — Time deposits in other financial institutions 3,129 3,129 3,129 — — Securities: Carried at fair value 6,127,975 6,127,975 2,026 6,125,949 — Held to maturity 88,839 100,041 — 100,041 — Other investments 75,253 75,523 — 75,523 — Loans held for sale 57,949 57,949 — 57,949 — Loans, net: Commercial and industrial 2,495,981 2,391,041 — 2,379,785 11,256 PPP 957,785 957,785 — 957,785 — Owner occupied commercial real estate 1,756,405 1,745,397 — 1,739,523 5,874 Non-owner occupied commercial real estate 1,900,608 1,892,213 — 1,887,306 4,907 Real estate construction 843,140 849,224 — 849,224 — Agricultural and agricultural real estate 707,397 697,729 — 685,278 12,451 Residential real estate 828,507 828,366 — 828,366 — Consumer 401,622 407,914 — 407,914 — Total Loans, net 9,891,445 9,769,669 — 9,735,181 34,488 Cash surrender value on life insurance 187,664 187,664 — 187,664 — Derivative financial instruments (1) 44,102 44,102 — 44,102 — Interest rate lock commitments 1,827 1,827 — — 1,827 Financial liabilities: Deposits Demand deposits 5,688,810 5,688,810 — 5,688,810 — Savings deposits 8,019,704 8,019,704 — 8,019,704 — Time deposits 1,271,391 1,273,468 — 1,273,468 — Short term borrowings 167,872 167,872 — 167,872 — Other borrowings 457,042 458,806 — 458,806 — Derivative financial instruments (1) 51,962 51,962 — 51,962 — Forward commitments 697 697 — 697 — (1) Includes embedded derivatives, back-to-back loan swaps and fair value hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps and free standing derivative instruments. 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, HTLF 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, HTLF 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 HTLF 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 HTLF 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, 2021 | |
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 HTLF 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 HTLF'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. HTLF'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 services, cashier’s checks, and other services. HTLF'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 HTLF's banks or a non-bank cardholder uses a HTLF-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. HTLF'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. HTLF does not earn performance-based incentives. HTLF'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 commissions primarily consist of commissions related to broker-dealer contracts. The contracts are between the customer and the broker-dealer, and HTLF 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. HTLF acts as an insurance agent between the customer and the insurance carrier. HTLF'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 table 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, 2021, and 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 4,146 $ 3,710 $ 12,096 $ 10,623 Overdraft fees 3,044 2,184 8,185 6,627 Customer service and other service fees 52 39 152 133 Credit card fee income 5,673 3,894 15,835 11,861 Debit card income 2,636 1,922 8,086 5,498 Total service charges and fees 15,551 11,749 44,354 34,742 Trust fees 6,221 5,357 18,037 15,356 Brokerage and insurance commissions 866 649 2,584 1,977 Total noninterest income in-scope of Topic 606 22,638 17,755 64,975 52,075 Out-of-scope of Topic 606 Loan servicing income $ 784 $ 638 $ 2,495 $ 1,980 Securities gains, net 1,535 1,300 4,347 4,964 Unrealized gain on equity securities, net 112 155 85 604 Net gains on sale of loans held for sale 5,281 8,894 16,454 21,411 Valuation adjustment on servicing rights 195 (120) 586 (1,676) Income on bank owned life insurance 940 868 2,706 2,533 Other noninterest income 1,239 1,726 4,557 5,779 Total noninterest income out-of-scope of Topic 606 10,086 13,461 31,230 35,595 Total noninterest income $ 32,724 $ 31,216 $ 96,205 $ 87,670 Contract Balances |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION HTLF 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 increased the number of shares of common stock authorized for issuance to 1,460,000 and made certain other changes to the Plan. As of September 30, 2021, 1,194,377 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, HTLF 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. HTLF's income tax expense included $304,000 of tax benefit during the nine months ended September 30, 2021 and a tax expense of $93,000 during the nine months ended September 30, 2020, 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"). The time-based RSUs represent the right, without payment, to receive shares of HTLF common stock on a specified date in the future. Generally, the time-based RSUs vest over three years in equal installments in March of each of the three years following the year of the grant. The Compensation Committee has also granted three three 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), and the three All of HTLF's RSUs will be settled in common stock upon vesting and are not entitled to dividends until vested. A summary of the RSUs outstanding as of September 30, 2021, and September 30, 2020, and changes during the nine months ended September 30, 2021 and 2020, follows: 2021 2020 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 348,275 $ 38.22 254,383 $ 46.76 Granted 214,943 51.49 220,688 31.95 Vested (146,864) 40.87 (119,325) 44.49 Forfeited (24,088) 42.98 (15,674) 47.13 Outstanding at September 30, 392,266 $ 44.14 340,072 $ 38.37 Total compensation costs recorded for RSUs were $6.5 million and $5.4 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there were $8.5 million of total unrecognized compensation costs related to the Plan for RSUs that are expected to be recognized through 2024. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020, included in the Annual Report on Form 10-K of Heartland Financial USA, Inc. ("HTLF") filed with the Securities and Exchange Commission ("SEC") on February 25, 2021 . 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 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, 2021, are not necessarily indicative of the results expected for the year ending December 31, 2021. |
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 | HTLF 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 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. HTLF has a formal working group that is responsible for the planning, assessment and execution of the transition from LIBOR as an interest rate benchmark to term SOFR. Currently, HTLF has adjustable rate loans, several debt obligations and securities and derivative instruments in place that reference LIBOR-based rates. HTLF’s transition plan provides for the cessation in new contracts of the use of LIBOR as a reference rate no later than December 31, 2021. Management will continue to assess HTLF preparedness and risk management through oversight and internal reporting on the progress of the transition plan. 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. HTLF adopted this ASU on January 1, 2021, as required, and the adoption did not have a material impact on its 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. HTLF 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. 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 HTLF'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, HTLF classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. Loans Held to Maturity HTLF 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 HTLF values premises, furniture and equipment held for sale based on third-party appraisals less estimated disposal costs. HTLF 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. HTLF 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. HTLF 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 HTLF. HTLF 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. HTLF classifies commercial servicing rights as nonrecurring with Level 3 measurement inputs. Derivative Financial Instruments HTLF'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, HTLF 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, HTLF has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although HTLF 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, 2021, and December 31, 2020, HTLF 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, HTLF has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Interest rate lock commitments HTLF 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 HTLF 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. HTLF 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. HTLF 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 | Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, requires revenue to be recognized at an amount that reflects the consideration to which HTLF 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 HTLF'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. HTLF'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 services, cashier’s checks, and other services. HTLF'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 HTLF's banks or a non-bank cardholder uses a HTLF-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. HTLF'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. HTLF does not earn performance-based incentives. HTLF'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 commissions primarily consist of commissions related to broker-dealer contracts. The contracts are between the customer and the broker-dealer, and HTLF 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. HTLF acts as an insurance agent between the customer and the insurance carrier. HTLF'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. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Amounts used in the determination of basic and diluted earnings per share for the three- and nine-months ended September 30, 2021, and 2020, are shown in the table below, dollars and number of shares in thousands, except per share data: Three Months Ended 2021 2020 Net income $ 55,924 $ 47,958 Preferred dividends (2,013) (2,437) Net income available to common stockholders $ 53,911 $ 45,521 Weighted average common shares outstanding for basic earnings per share 42,303 36,941 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 113 54 Weighted average common shares for diluted earnings per share 42,416 36,995 Earnings per common share — basic $ 1.27 $ 1.23 Earnings per common share — diluted $ 1.27 $ 1.23 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 3 41 Nine Months Ended 2021 2020 Net income $ 170,343 $ 98,129 Preferred dividends (6,038) (2,437) Net income available to stockholders $ 164,305 $ 95,692 Weighted average common shares outstanding for basic earnings per share 42,241 36,882 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 140 74 Weighted average common shares for diluted earnings per share 42,381 36,956 Earnings per common share — basic $ 3.89 $ 2.59 Earnings per common share — diluted $ 3.88 $ 2.59 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 1 — |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021, and December 31, 2020, are summarized in the table below, in thousands: Amortized Gross Gross Estimated September 30, 2021 U.S. treasuries $ 997 $ 16 $ — $ 1,013 U.S. agencies 35,453 208 (628) 35,033 Obligations of states and political subdivisions 1,790,972 53,601 (21,108) 1,823,465 Mortgage-backed securities - agency 2,387,792 17,104 (33,632) 2,371,264 Mortgage-backed securities - non-agency 1,619,636 9,760 (1,493) 1,627,903 Commercial mortgage-backed securities - agency 128,609 2,021 (2,769) 127,861 Commercial mortgage-backed securities - non-agency 560,445 1,612 (390) 561,667 Asset-backed securities 868,215 10,570 (1,139) 877,646 Corporate bonds 3,234 63 (3) 3,294 Total debt securities 7,395,353 94,955 (61,162) 7,429,146 Equity securities with a readily determinable fair value 20,790 — — 20,790 Total $ 7,416,143 $ 94,955 $ (61,162) $ 7,449,936 December 31, 2020 U.S. treasuries $ 1,995 $ 31 $ — $ 2,026 U.S. agencies 167,048 657 (926) 166,779 Obligations of states and political subdivisions 1,562,631 75,555 (2,959) 1,635,227 Mortgage-backed securities - agency 1,351,964 16,029 (12,723) 1,355,270 Mortgage-backed securities - non-agency 1,428,068 22,688 (1,640) 1,449,116 Commercial mortgage-backed securities - agency 171,451 3,440 (738) 174,153 Commercial mortgage-backed securities - non-agency 253,421 37 (691) 252,767 Asset-backed securities 1,064,255 9,421 (4,410) 1,069,266 Corporate bonds 3,763 8 (29) 3,742 Total debt securities 6,004,596 127,866 (24,116) 6,108,346 Equity securities with a readily determinable fair value 19,629 — — 19,629 Total $ 6,024,225 $ 127,866 $ (24,116) $ 6,127,975 |
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, 2021, and December 31, 2020, are summarized in the table below, in thousands: Amortized Gross Gross Estimated Allowance for Credit Losses September 30, 2021 Obligations of states and political subdivisions $ 85,354 $ 9,656 $ — $ 95,010 $ — Total $ 85,354 $ 9,656 $ — $ 95,010 $ — December 31, 2020 Obligations of states and political subdivisions $ 88,890 $ 11,151 $ — $ 100,041 $ (51) Total $ 88,890 $ 11,151 $ — $ 100,041 $ (51) |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of investment securities carried at fair value at September 30, 2021, 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, 2021 Amortized Cost Estimated Fair Value Due in 1 year or less $ 12,487 $ 12,527 Due in 1 to 5 years 19,354 20,278 Due in 5 to 10 years 238,253 241,971 Due after 10 years 1,560,562 1,588,029 Total debt securities 1,830,656 1,862,805 Mortgage and asset-backed securities 5,564,697 5,566,341 Equity securities with a readily determinable fair value 20,790 20,790 Total investment securities $ 7,416,143 $ 7,449,936 The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2021, 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, 2021 Amortized Cost Estimated Fair Value Due in 1 year or less $ 2,547 $ 2,553 Due in 1 to 5 years 42,225 44,163 Due in 5 to 10 years 34,046 39,188 Due after 10 years 6,536 9,106 Total debt securities 85,354 95,010 |
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 months ended September 30, 2021 and 2020, are summarized as follows, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Proceeds from sales $ 169,108 $ 306,383 $ 799,588 $ 818,022 Gross security gains 1,591 1,825 5,880 8,687 Gross security losses 56 726 1,533 3,924 |
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 the securities portfolio as of September 30, 2021, and December 31, 2020. 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, 2020, and December 31, 2019 , 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, 2021 U.S. agencies $ 18,861 $ (628) 1 $ — $ — — $ 18,861 $ (628) 1 Obligations of states and political subdivisions 740,885 (18,939) 131 47,453 (2,169) 13 788,338 (21,108) 144 Mortgage-backed securities - agency 1,413,527 (21,898) 58 336,528 (11,734) 15 1,750,055 (33,632) 73 Mortgage-backed securities - non-agency 468,119 (1,241) 12 48,728 (252) 5 516,847 (1,493) 17 Commercial mortgage-backed securities - agency 80,595 (2,769) 14 — — — 80,595 (2,769) 14 Commercial mortgage-backed securities - non-agency 76,559 (218) 1 14,944 (172) 2 91,503 (390) 3 Asset-backed securities 127,455 (943) 10 21,692 (196) 8 149,147 (1,139) 18 Corporate bonds 497 (3) 1 — — — 497 (3) 1 Total temporarily impaired securities $ 2,926,498 $ (46,639) 228 $ 469,345 $ (14,523) 43 $ 3,395,843 $ (61,162) 271 December 31, 2020 U.S. agencies $ 2,981 $ (8) 5 $ 99,922 $ (918) 72 $ 102,903 $ (926) 77 Obligations of states and political subdivisions 346,598 (2,959) 49 — — — 346,598 (2,959) 49 Mortgage-backed securities - agency 653,793 (12,342) 35 31,012 (381) 3 684,805 (12,723) 38 Mortgage-backed securities - non-agency 378,843 (1,639) 17 1,622 (1) 1 380,465 (1,640) 18 Commercial mortgage-backed securities - agency 46,541 (738) 6 — — — 46,541 (738) 6 Commercial mortgage-backed securities - non-agency 100,042 (15) 2 35,428 (676) 3 135,470 (691) 5 Asset-backed securities 141,824 (643) 9 340,452 (3,767) 24 482,276 (4,410) 33 Corporate bonds 1,908 (29) 4 — — — 1,908 (29) 4 Total temporarily impaired securities $ 1,672,530 $ (18,373) 127 $ 508,436 $ (5,743) 103 $ 2,180,966 $ (24,116) 230 |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following tables present, in thousands, the activity in the allowance for credit losses for securities held to maturity by obligations of states and political subdivisions securities for the three and nine months ended September 30, 2021 and 2020: Three Months Ended 2021 2020 Beginning balance $ 51 $ 62 Provision (benefit) for credit losses (51) (1) Balance at period end $ — $ 61 Nine Months Ended 2021 2020 Beginning balance $ 51 $ — Impact of ASU 2016-13 adoption on January 1, — 158 Adjusted balance at January 1, 51 158 Provision (benefit) for credit losses (51) (97) Balance at period end $ — $ 61 |
Schedule of Financing Receivable Credit Quality Indicators | The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of September 30, 2021 and December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: September 30, 2021 December 31, 2020 Rating AAA $ 3,236 $ — AA, AA+, AA- 61,793 64,385 A+, A, A- 14,933 18,353 BBB 4,914 4,208 Not Rated 478 1,944 Total $ 85,354 $ 88,890 The following tables show the risk category of loans by loan category and year of origination as of September 30, 2021, and December 31, 2020, in thousands: As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial and industrial Pass $ 460,258 $ 401,606 $ 239,419 $ 100,840 $ 179,241 $ 343,238 $ 602,155 $ 2,326,757 Watch 13,274 14,096 13,982 11,230 6,363 16,657 30,157 105,759 Substandard 14,511 9,315 14,949 8,858 10,880 16,921 30,419 105,853 Commercial and industrial total $ 488,043 $ 425,017 $ 268,350 $ 120,928 $ 196,484 $ 376,816 $ 662,731 $ 2,538,369 PPP Pass $ 297,218 $ 59,481 $ — $ — $ — $ — $ — $ 356,699 Watch 19,656 11,210 — — — — — 30,866 Substandard 19,434 2,248 — — — — — 21,682 PPP total $ 336,308 $ 72,939 $ — $ — $ — $ — $ — $ 409,247 Owner occupied commercial real estate Pass $ 679,698 $ 378,366 $ 337,572 $ 207,982 $ 128,973 $ 220,013 $ 29,446 $ 1,982,050 Watch 2,517 16,981 13,277 18,264 15,618 9,216 1,853 77,726 Substandard 4,490 17,518 13,338 2,866 13,857 21,632 1,750 75,451 Owner occupied commercial real estate total $ 686,705 $ 412,865 $ 364,187 $ 229,112 $ 158,448 $ 250,861 $ 33,049 $ 2,135,227 Non-owner occupied commercial real estate Pass $ 394,782 $ 316,992 $ 353,092 $ 274,618 $ 166,123 $ 199,072 $ 37,518 $ 1,742,197 Watch 12,832 17,170 48,377 35,098 7,595 35,783 — 156,855 Substandard 18,113 15,291 22,011 2,828 14,848 48,036 308 121,435 Non-owner occupied commercial real estate total $ 425,727 $ 349,453 $ 423,480 $ 312,544 $ 188,566 $ 282,891 $ 37,826 $ 2,020,487 Real estate construction Pass $ 240,048 $ 282,023 $ 177,594 $ 15,228 $ 8,501 $ 9,628 $ 13,269 $ 746,291 Watch 2,191 876 15,006 47,267 — — 112 65,452 Substandard — 50 47 1,992 — 169 — 2,258 Real estate construction total $ 242,239 $ 282,949 $ 192,647 $ 64,487 $ 8,501 $ 9,797 $ 13,381 $ 814,001 Agricultural and agricultural real estate Pass $ 174,014 $ 114,928 $ 66,869 $ 37,763 $ 24,751 $ 39,479 $ 128,684 $ 586,488 As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Watch 5,343 10,435 5,967 3,013 38 3,711 6,840 35,347 Substandard 7,559 6,354 8,570 18,243 3,937 9,826 8,346 62,835 Agricultural and agricultural real estate total $ 186,916 $ 131,717 $ 81,406 $ 59,019 $ 28,726 $ 53,016 $ 143,870 $ 684,670 Residential real estate Pass $ 251,931 $ 103,529 $ 58,179 $ 68,551 $ 50,817 $ 244,641 $ 32,474 $ 810,122 Watch 1,086 4,650 1,205 1,503 807 5,043 — 14,294 Substandard 4,085 537 496 2,555 1,185 7,082 — 15,940 Residential real estate total $ 257,102 $ 108,716 $ 59,880 $ 72,609 $ 52,809 $ 256,766 $ 32,474 $ 840,356 Consumer Pass $ 57,680 $ 22,845 $ 16,732 $ 10,290 $ 11,722 $ 18,442 $ 265,241 $ 402,952 Watch 912 196 281 1,368 190 542 1,387 4,876 Substandard 891 359 511 259 335 1,742 625 4,722 Consumer total $ 59,483 $ 23,400 $ 17,524 $ 11,917 $ 12,247 $ 20,726 $ 267,253 $ 412,550 Total Pass $ 2,555,629 $ 1,679,770 $ 1,249,457 $ 715,272 $ 570,128 $ 1,074,513 $ 1,108,787 $ 8,953,556 Total Watch 57,811 75,614 98,095 117,743 30,611 70,952 40,349 491,175 Total Substandard 69,083 51,672 59,922 37,601 45,042 105,408 41,448 410,176 Total Loans $ 2,682,523 $ 1,807,056 $ 1,407,474 $ 870,616 $ 645,781 $ 1,250,873 $ 1,190,584 $ 9,854,907 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 557,853 $ 340,809 $ 168,873 $ 215,696 $ 101,010 $ 337,834 $ 541,627 $ 2,263,702 Watch 41,574 24,676 19,672 14,262 8,072 2,474 49,432 160,162 Substandard 23,024 16,274 8,897 15,717 9,098 19,537 18,388 110,935 Commercial and industrial total $ 622,451 $ 381,759 $ 197,442 $ 245,675 $ 118,180 $ 359,845 $ 609,447 $ 2,534,799 PPP Pass $ 880,709 $ — $ — $ — $ — $ — $ — $ 880,709 Watch 22,533 — — — — — — 22,533 Substandard 54,543 — — — — — — 54,543 PPP total $ 957,785 $ — $ — $ — $ — $ — $ — $ 957,785 Owner occupied commercial real estate Pass $ 400,662 $ 369,401 $ 300,242 $ 167,470 $ 107,234 $ 213,780 $ 33,759 $ 1,592,548 Watch 15,345 13,764 22,488 20,811 8,717 15,282 4,311 100,718 Substandard 15,914 9,522 12,164 14,147 8,580 21,708 1,105 83,140 Owner occupied commercial real estate total $ 431,921 $ 392,687 $ 334,894 $ 202,428 $ 124,531 $ 250,770 $ 39,175 $ 1,776,406 Non-owner occupied commercial real estate Pass $ 334,722 $ 411,301 $ 305,456 $ 194,101 $ 108,070 $ 233,153 $ 24,466 $ 1,611,269 Watch 22,826 55,225 24,718 18,724 20,954 45,672 5,114 193,233 Substandard 30,899 15,035 23,290 17,046 9,147 21,060 502 116,979 Non-owner occupied commercial real estate total $ 388,447 $ 481,561 $ 353,464 $ 229,871 $ 138,171 $ 299,885 $ 30,082 $ 1,921,481 Real estate construction Pass $ 311,625 $ 309,678 $ 157,171 $ 12,625 $ 6,954 $ 5,110 $ 21,431 $ 824,594 Watch 2,105 26,659 2,403 332 55 388 1,295 33,237 Substandard 196 2,760 2,036 — 39 358 — 5,389 Real estate construction total $ 313,926 $ 339,097 $ 161,610 $ 12,957 $ 7,048 $ 5,856 $ 22,726 $ 863,220 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Agricultural and agricultural real estate Pass $ 171,578 $ 90,944 $ 62,349 $ 39,252 $ 17,626 $ 37,696 $ 148,456 $ 567,901 Watch 20,500 16,202 8,854 2,448 3,515 3,157 12,282 66,958 Substandard 17,403 7,044 23,519 6,758 3,917 9,952 11,074 79,667 Agricultural and agricultural real estate total $ 209,481 $ 114,190 $ 94,722 $ 48,458 $ 25,058 $ 50,805 $ 171,812 $ 714,526 Residential real estate Pass $ 153,017 $ 99,440 $ 118,854 $ 83,534 $ 63,477 $ 244,852 $ 33,467 $ 796,641 Watch 3,986 4,507 2,188 1,896 3,117 8,525 — 24,219 Substandard 980 442 2,507 1,528 884 12,141 1,100 19,582 Residential real estate total $ 157,983 $ 104,389 $ 123,549 $ 86,958 $ 67,478 $ 265,518 $ 34,567 $ 840,442 Consumer Pass $ 37,037 $ 27,646 $ 18,811 $ 15,034 $ 4,009 $ 19,483 $ 280,996 $ 403,016 Watch 168 352 647 340 82 646 1,622 3,857 Substandard 481 959 1,884 500 897 1,976 822 7,519 Consumer total $ 37,686 $ 28,957 $ 21,342 $ 15,874 $ 4,988 $ 22,105 $ 283,440 $ 414,392 Total Pass $ 2,847,203 $ 1,649,219 $ 1,131,756 $ 727,712 $ 408,380 $ 1,091,908 $ 1,084,202 $ 8,940,380 Total Watch 129,037 141,385 80,970 58,813 44,512 76,144 74,056 604,917 Total Substandard 143,440 52,036 74,297 55,696 32,562 86,732 32,991 477,754 Total Loans $ 3,119,680 $ 1,842,640 $ 1,287,023 $ 842,221 $ 485,454 $ 1,254,784 $ 1,191,249 $ 10,023,051 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans | Loans as of September 30, 2021, and December 31, 2020, were as follows, in thousands: September 30, 2021 December 31, 2020 Loans receivable held to maturity: Commercial and industrial $ 2,538,369 $ 2,534,799 Paycheck Protection Program ("PPP") 409,247 957,785 Owner occupied commercial real estate 2,135,227 1,776,406 Non-owner occupied commercial real estate 2,020,487 1,921,481 Real estate construction 814,001 863,220 Agricultural and agricultural real estate 684,670 714,526 Residential real estate 840,356 840,442 Consumer 412,550 414,392 Total loans receivable held to maturity 9,854,907 10,023,051 Allowance for credit losses (117,533) (131,606) Loans receivable, net $ 9,737,374 $ 9,891,445 |
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, 2021, and December 31, 2020, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. If a loan no longer shares similar risk characteristics with other loans in the pool, it is evaluated on an individual basis and is not included in the collective evaluation. Lending relationships with $500,000 or more of total exposure and are on nonaccrual are individually assessed using a collateral dependency calculation. All other loans are collectively evaluated for losses. 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, 2021 Commercial and industrial $ 4,710 $ 23,198 $ 27,908 $ 15,524 $ 2,522,845 $ 2,538,369 PPP — — — — 409,247 409,247 Owner occupied commercial real estate 110 19,018 19,128 10,166 2,125,061 2,135,227 Non-owner occupied commercial real estate 2,847 19,268 22,115 19,314 2,001,173 2,020,487 Real estate construction — 23,698 23,698 — 814,001 814,001 Agricultural and agricultural real estate 3,062 3,264 6,326 13,917 670,753 684,670 Residential real estate — 9,238 9,238 — 840,356 840,356 Consumer — 9,120 9,120 — 412,550 412,550 Total $ 10,729 $ 106,804 $ 117,533 $ 58,921 $ 9,795,986 $ 9,854,907 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, 2020 Commercial and industrial $ 4,077 $ 34,741 $ 38,818 $ 16,578 $ 2,518,221 $ 2,534,799 PPP — — — — 957,785 957,785 Owner occupied commercial real estate 111 19,890 20,001 11,174 1,765,232 1,776,406 Non-owner occupied commercial real estate 3,250 17,623 20,873 13,490 1,907,991 1,921,481 Real estate construction — 20,080 20,080 — 863,220 863,220 Agricultural and agricultural real estate 1,988 5,141 7,129 15,453 699,073 714,526 Residential real estate — 11,935 11,935 535 839,907 840,442 Consumer — 12,770 12,770 — 414,392 414,392 Total $ 9,426 $ 122,180 $ 131,606 $ 57,230 $ 9,965,821 $ 10,023,051 |
Troubled Debt Restructuring on Loans Modified | The following tables provide information on troubled debt restructured loans that were modified during the three- and nine- months ended September 30, 2021, and September 30, 2020, dollars in thousands: Three Months Ended 2021 2020 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 2021 2020 Number Pre- Post- Number Pre- Post- Commercial and industrial — $ — $ — 1 $ 20 $ 20 PPP — — — — — — Owner occupied commercial real estate — — — — — — Non-owner occupied commercial real estate 2 7,850 7,850 1 9,434 9,434 Real estate construction — — — — — — Agricultural and agricultural real estate — — — — — — Nine Months Ended 2021 2020 Number Pre- Post- Number Pre- Post- Residential real estate — — — 2 92 98 Consumer — — — — — — Total 2 $ 7,850 $ 7,850 4 $ 9,546 $ 9,552 |
Troubled Debt Restructuring on Loans With Payment Defaults | The following tables show troubled debt restructured loans for which there was a payment default during the three- and nine- months ended September 30, 2021, and September 30, 2020, that had been modified during the twelve-month period prior to default. With Payment Defaults During the Three Months Ended September 30, 2021 2020 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, 2021 2020 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 Consumer — — — — Total — $ — 1 $ 236 |
Schedule of Financing Receivable Credit Quality Indicators | The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of September 30, 2021 and December 31, 2020, which are updated quarterly and used to monitor the credit quality of the securities: September 30, 2021 December 31, 2020 Rating AAA $ 3,236 $ — AA, AA+, AA- 61,793 64,385 A+, A, A- 14,933 18,353 BBB 4,914 4,208 Not Rated 478 1,944 Total $ 85,354 $ 88,890 The following tables show the risk category of loans by loan category and year of origination as of September 30, 2021, and December 31, 2020, in thousands: As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial and industrial Pass $ 460,258 $ 401,606 $ 239,419 $ 100,840 $ 179,241 $ 343,238 $ 602,155 $ 2,326,757 Watch 13,274 14,096 13,982 11,230 6,363 16,657 30,157 105,759 Substandard 14,511 9,315 14,949 8,858 10,880 16,921 30,419 105,853 Commercial and industrial total $ 488,043 $ 425,017 $ 268,350 $ 120,928 $ 196,484 $ 376,816 $ 662,731 $ 2,538,369 PPP Pass $ 297,218 $ 59,481 $ — $ — $ — $ — $ — $ 356,699 Watch 19,656 11,210 — — — — — 30,866 Substandard 19,434 2,248 — — — — — 21,682 PPP total $ 336,308 $ 72,939 $ — $ — $ — $ — $ — $ 409,247 Owner occupied commercial real estate Pass $ 679,698 $ 378,366 $ 337,572 $ 207,982 $ 128,973 $ 220,013 $ 29,446 $ 1,982,050 Watch 2,517 16,981 13,277 18,264 15,618 9,216 1,853 77,726 Substandard 4,490 17,518 13,338 2,866 13,857 21,632 1,750 75,451 Owner occupied commercial real estate total $ 686,705 $ 412,865 $ 364,187 $ 229,112 $ 158,448 $ 250,861 $ 33,049 $ 2,135,227 Non-owner occupied commercial real estate Pass $ 394,782 $ 316,992 $ 353,092 $ 274,618 $ 166,123 $ 199,072 $ 37,518 $ 1,742,197 Watch 12,832 17,170 48,377 35,098 7,595 35,783 — 156,855 Substandard 18,113 15,291 22,011 2,828 14,848 48,036 308 121,435 Non-owner occupied commercial real estate total $ 425,727 $ 349,453 $ 423,480 $ 312,544 $ 188,566 $ 282,891 $ 37,826 $ 2,020,487 Real estate construction Pass $ 240,048 $ 282,023 $ 177,594 $ 15,228 $ 8,501 $ 9,628 $ 13,269 $ 746,291 Watch 2,191 876 15,006 47,267 — — 112 65,452 Substandard — 50 47 1,992 — 169 — 2,258 Real estate construction total $ 242,239 $ 282,949 $ 192,647 $ 64,487 $ 8,501 $ 9,797 $ 13,381 $ 814,001 Agricultural and agricultural real estate Pass $ 174,014 $ 114,928 $ 66,869 $ 37,763 $ 24,751 $ 39,479 $ 128,684 $ 586,488 As of September 30, 2021 Amortized Cost Basis of Term Loans by Year of Origination 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Watch 5,343 10,435 5,967 3,013 38 3,711 6,840 35,347 Substandard 7,559 6,354 8,570 18,243 3,937 9,826 8,346 62,835 Agricultural and agricultural real estate total $ 186,916 $ 131,717 $ 81,406 $ 59,019 $ 28,726 $ 53,016 $ 143,870 $ 684,670 Residential real estate Pass $ 251,931 $ 103,529 $ 58,179 $ 68,551 $ 50,817 $ 244,641 $ 32,474 $ 810,122 Watch 1,086 4,650 1,205 1,503 807 5,043 — 14,294 Substandard 4,085 537 496 2,555 1,185 7,082 — 15,940 Residential real estate total $ 257,102 $ 108,716 $ 59,880 $ 72,609 $ 52,809 $ 256,766 $ 32,474 $ 840,356 Consumer Pass $ 57,680 $ 22,845 $ 16,732 $ 10,290 $ 11,722 $ 18,442 $ 265,241 $ 402,952 Watch 912 196 281 1,368 190 542 1,387 4,876 Substandard 891 359 511 259 335 1,742 625 4,722 Consumer total $ 59,483 $ 23,400 $ 17,524 $ 11,917 $ 12,247 $ 20,726 $ 267,253 $ 412,550 Total Pass $ 2,555,629 $ 1,679,770 $ 1,249,457 $ 715,272 $ 570,128 $ 1,074,513 $ 1,108,787 $ 8,953,556 Total Watch 57,811 75,614 98,095 117,743 30,611 70,952 40,349 491,175 Total Substandard 69,083 51,672 59,922 37,601 45,042 105,408 41,448 410,176 Total Loans $ 2,682,523 $ 1,807,056 $ 1,407,474 $ 870,616 $ 645,781 $ 1,250,873 $ 1,190,584 $ 9,854,907 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Commercial and industrial Pass $ 557,853 $ 340,809 $ 168,873 $ 215,696 $ 101,010 $ 337,834 $ 541,627 $ 2,263,702 Watch 41,574 24,676 19,672 14,262 8,072 2,474 49,432 160,162 Substandard 23,024 16,274 8,897 15,717 9,098 19,537 18,388 110,935 Commercial and industrial total $ 622,451 $ 381,759 $ 197,442 $ 245,675 $ 118,180 $ 359,845 $ 609,447 $ 2,534,799 PPP Pass $ 880,709 $ — $ — $ — $ — $ — $ — $ 880,709 Watch 22,533 — — — — — — 22,533 Substandard 54,543 — — — — — — 54,543 PPP total $ 957,785 $ — $ — $ — $ — $ — $ — $ 957,785 Owner occupied commercial real estate Pass $ 400,662 $ 369,401 $ 300,242 $ 167,470 $ 107,234 $ 213,780 $ 33,759 $ 1,592,548 Watch 15,345 13,764 22,488 20,811 8,717 15,282 4,311 100,718 Substandard 15,914 9,522 12,164 14,147 8,580 21,708 1,105 83,140 Owner occupied commercial real estate total $ 431,921 $ 392,687 $ 334,894 $ 202,428 $ 124,531 $ 250,770 $ 39,175 $ 1,776,406 Non-owner occupied commercial real estate Pass $ 334,722 $ 411,301 $ 305,456 $ 194,101 $ 108,070 $ 233,153 $ 24,466 $ 1,611,269 Watch 22,826 55,225 24,718 18,724 20,954 45,672 5,114 193,233 Substandard 30,899 15,035 23,290 17,046 9,147 21,060 502 116,979 Non-owner occupied commercial real estate total $ 388,447 $ 481,561 $ 353,464 $ 229,871 $ 138,171 $ 299,885 $ 30,082 $ 1,921,481 Real estate construction Pass $ 311,625 $ 309,678 $ 157,171 $ 12,625 $ 6,954 $ 5,110 $ 21,431 $ 824,594 Watch 2,105 26,659 2,403 332 55 388 1,295 33,237 Substandard 196 2,760 2,036 — 39 358 — 5,389 Real estate construction total $ 313,926 $ 339,097 $ 161,610 $ 12,957 $ 7,048 $ 5,856 $ 22,726 $ 863,220 As of December 31, 2020 Amortized Cost Basis of Term Loans by Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Revolving Total Agricultural and agricultural real estate Pass $ 171,578 $ 90,944 $ 62,349 $ 39,252 $ 17,626 $ 37,696 $ 148,456 $ 567,901 Watch 20,500 16,202 8,854 2,448 3,515 3,157 12,282 66,958 Substandard 17,403 7,044 23,519 6,758 3,917 9,952 11,074 79,667 Agricultural and agricultural real estate total $ 209,481 $ 114,190 $ 94,722 $ 48,458 $ 25,058 $ 50,805 $ 171,812 $ 714,526 Residential real estate Pass $ 153,017 $ 99,440 $ 118,854 $ 83,534 $ 63,477 $ 244,852 $ 33,467 $ 796,641 Watch 3,986 4,507 2,188 1,896 3,117 8,525 — 24,219 Substandard 980 442 2,507 1,528 884 12,141 1,100 19,582 Residential real estate total $ 157,983 $ 104,389 $ 123,549 $ 86,958 $ 67,478 $ 265,518 $ 34,567 $ 840,442 Consumer Pass $ 37,037 $ 27,646 $ 18,811 $ 15,034 $ 4,009 $ 19,483 $ 280,996 $ 403,016 Watch 168 352 647 340 82 646 1,622 3,857 Substandard 481 959 1,884 500 897 1,976 822 7,519 Consumer total $ 37,686 $ 28,957 $ 21,342 $ 15,874 $ 4,988 $ 22,105 $ 283,440 $ 414,392 Total Pass $ 2,847,203 $ 1,649,219 $ 1,131,756 $ 727,712 $ 408,380 $ 1,091,908 $ 1,084,202 $ 8,940,380 Total Watch 129,037 141,385 80,970 58,813 44,512 76,144 74,056 604,917 Total Substandard 143,440 52,036 74,297 55,696 32,562 86,732 32,991 477,754 Total Loans $ 3,119,680 $ 1,842,640 $ 1,287,023 $ 842,221 $ 485,454 $ 1,254,784 $ 1,191,249 $ 10,023,051 |
Past Due Financing Receivables | The following table sets forth information regarding accruing and nonaccrual loans at September 30, 2021, and December 31, 2020, in thousands: Accruing Loans 30-59 60-89 90 Days or Total Current Nonaccrual Total Loans September 30, 2021 Commercial and industrial $ 3,800 $ 653 $ 727 $ 5,180 $ 2,513,785 $ 19,404 $ 2,538,369 PPP — — — — 409,247 — 409,247 Owner occupied commercial real estate 1,255 952 6 2,213 2,120,755 12,259 2,135,227 Non-owner occupied commercial real estate 41 26 — 67 1,999,904 20,516 2,020,487 Real estate construction 50 101 52 203 813,343 455 814,001 Agricultural and agricultural real estate 625 — — 625 668,065 15,980 684,670 Residential real estate 2,168 903 76 3,147 825,013 12,196 840,356 Consumer 1,112 27 — 1,139 409,846 1,565 412,550 Total gross loans receivable held to maturity $ 9,051 $ 2,662 $ 861 $ 12,574 $ 9,759,958 $ 82,375 $ 9,854,907 December 31, 2020 Commercial and industrial $ 5,825 $ 2,322 $ 720 $ 8,867 $ 2,504,170 $ 21,762 $ 2,534,799 PPP 1 — — 1 957,784 — 957,785 Owner occupied commercial real estate 2,815 167 — 2,982 1,759,649 13,775 1,776,406 Non-owner occupied commercial real estate 2,143 2,674 — 4,817 1,902,003 14,661 1,921,481 Real estate construction 2,446 96 — 2,542 859,784 894 863,220 Agricultural and agricultural real estate 1,688 — — 1,688 694,150 18,688 714,526 Residential real estate 1,675 83 — 1,758 825,047 13,637 840,442 Consumer 807 139 — 946 409,477 3,969 414,392 Total gross loans receivable held to maturity $ 17,400 $ 5,481 $ 720 $ 23,601 $ 9,912,064 $ 87,386 $ 10,023,051 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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- months ended September 30, 2021, and September 30, 2020, 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, 2021 $ 31,332 $ — $ 19,990 $ 22,828 $ 19,580 $ 7,160 $ 9,741 $ 10,095 $ 120,726 Charge-offs (106) — (119) — — (195) (22) (725) (1,167) Recoveries 1,553 — 46 20 2 466 2 333 2,422 Provision (benefit) (4,871) — (789) (733) 4,116 (1,105) (483) (583) (4,448) Balance at September 30, 2021 $ 27,908 $ — $ 19,128 $ 22,115 $ 23,698 $ 6,326 $ 9,238 $ 9,120 $ 117,533 Commercial 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, 2020 $ 38,818 $ — $ 20,001 $ 20,873 $ 20,080 $ 7,129 $ 11,935 $ 12,770 $ 131,606 Charge-offs (1,896) — (232) (1,637) (10) (870) (113) (2,032) (6,790) Recoveries 2,111 — 143 33 8 487 7 826 3,615 Provision (benefit) (11,125) — (784) 2,846 3,620 (420) (2,591) (2,444) (10,898) Balance at September 30, 2021 $ 27,908 $ — $ 19,128 $ 22,115 $ 23,698 $ 6,326 $ 9,238 $ 9,120 $ 117,533 Commercial PPP 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, 2020 $ 32,518 $ — $ 23,402 $ 10,161 $ 28,667 $ 5,701 $ 9,304 $ 10,184 $ 119,937 Charge-offs (6,888) — (13,328) (25) — (936) (54) (522) (21,753) Recoveries 283 — 1 10 2 1 2 153 452 Provision (benefit) 8,668 — 1,154 1,981 (7,882) 576 419 (175) 4,741 Balance at September 30, 2020 $ 34,581 $ 32,531 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,342 $ 9,671 $ 9,640 $ 103,377 Commercial 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 $ 34,207 $ — $ 7,921 $ 7,584 $ 8,677 $ 5,680 $ 1,504 $ 4,822 $ 70,395 Impact of ASU 2016-13 adoption (272) — (114) (2,617) 6,335 (387) 4,817 4,309 12,071 Adjusted balance at January 1, 2020 33,935 — 7,807 4,967 15,012 5,293 6,321 9,131 82,466 Charge-offs (14,655) — (13,541) (44) (105) (1,190) (368) (1,715) (31,618) Recoveries 893 — 193 18 217 827 97 671 2,916 Provision (benefit) 14,408 — 16,770 7,186 5,663 412 3,621 1,553 49,613 Balance at September 30, 2020 $ 34,581 $ — $ 11,229 $ 12,127 $ 20,787 $ 5,342 $ 9,671 $ 9,640 $ 103,377 |
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, 2021 and September 30, 2020, were as follows: For the Three Months Ended September 30, 2021 2020 Balance at June 30, $ 14,002 $ 17,392 Provision (benefit) (35) (3,062) Balance at September 30, $ 13,967 $ 14,330 For the Nine Months Ended September 30, 2021 2020 Balance at December 31, $ 15,280 $ 248 Impact of ASU 2016-13 adoption on January 1, 2020 — 13,604 Adjusted balance at January 1, 15,280 13,852 Provision (benefit) (1,313) 478 Balance at September 30, $ 13,967 $ 14,330 |
GOODWILL, CORE DEPOSIT PREMIU_2
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021, and December 31, 2020, are presented in the table below, in thousands: September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 101,185 $ 66,169 $ 35,016 $ 101,185 $ 58,970 $ 42,215 Customer relationship intangibles 1,177 1,036 141 1,177 1,009 168 Mortgage servicing rights 12,323 6,522 5,801 11,268 6,079 5,189 Commercial servicing rights 7,054 6,504 550 7,054 6,191 863 Total $ 121,739 $ 80,231 $ 41,508 $ 120,684 $ 72,249 $ 48,435 |
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, 2021 $ 2,160 $ 9 $ 304 $ 51 $ 2,524 Year ending December 31, 2022 7,702 34 1,374 181 9,291 2023 6,739 33 1,178 130 8,080 2024 5,591 33 982 91 6,697 2025 4,700 32 785 97 5,614 2026 3,533 — 589 — 4,122 Thereafter 4,591 — 589 — 5,180 Total $ 35,016 $ 141 $ 5,801 $ 550 $ 41,508 |
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 September 30, 2021, and December 31, 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 September 30, 2021 $ 1,622 $ 1,187 $ 435 $ 6,340 $ 4,614 $ 1,726 December 31, 2020 $ 1,522 $ 1,100 $ 422 $ 5,445 $ 4,089 $ 1,356 The following table summarizes, in thousands, the book value and the fair value of each tranche of the commercial servicing rights at September 30, 2021, and December 31, 2020. Book Value Fair Value Book Value Fair Value September 30, 2021 $ 51 $ 211 $ 499 $ 747 December 31, 2020 $ 87 $ 203 $ 776 $ 1,085 |
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, 2021, and September 30, 2020: 2021 2020 Balance at January 1, $ 5,189 $ 5,621 Originations 1,055 2,571 Amortization (1,029) (1,693) Valuation adjustment 586 (1,676) Balance at period end $ 5,801 $ 4,823 Mortgage servicing rights, net to servicing portfolio 0.82 % 0.68 % |
Commercial servicing rights | |
Finite-Lived Intangible Assets [Line Items] | |
Summary of Changes in Servicing Rights | The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the nine months ended September 30, 2021, and September 30, 2020: 2021 2020 Balance at January 1, $ 863 $ 1,115 Originations — 62 Amortization (313) (248) Balance at period end $ 550 $ 929 Fair value of commercial servicing rights $ 958 $ 1,497 Commercial servicing rights, net to servicing portfolio 1.04 % 1.31 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 the embedded derivatives at September 30, 2021, and December 31, 2020, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2021 Embedded derivatives $ 8,857 $ 431 Other assets December 31, 2020 Embedded derivatives $ 9,198 $ 680 Other assets The table below identifies the gains and losses recognized on HTLF's embedded derivatives for the three- and nine- months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Gain (loss) recognized in other noninterest income on embedded derivatives $ (66) $ (69) $ (249) $ 293 |
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 HTLF's other free standing derivative instruments not designated as hedging instruments at September 30, 2021, and December 31, 2020, in thousands: Balance Sheet Category Notional Amount Fair Value September 30, 2021 Interest rate lock commitments (mortgage) Other assets $ 37,209 $ 1,204 Forward commitments Other assets 47,500 278 Forward commitments Other liabilities 19,500 (59) Undesignated interest rate swaps Other liabilities 8,857 (431) December 31, 2020 Interest rate lock commitments (mortgage) Other assets $ 42,078 $ 1,827 Forward commitments Other assets — — Forward commitments Other liabilities 86,500 (697) Undesignated interest rate swaps Other liabilities 9,198 (680) HTLF recognizes gains and losses on other free standing derivatives in two separate income statement categories. Interest rate lock commitments and forward commitments are recognized in net gains on sale of loans held for sale and undesignated interest rate swaps are recognized in other noninterest income. The table below identifies the gains and losses recognized in income on HTLF's other free standing derivative instruments not designated as hedging instruments for the three- and nine- months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest rate lock commitments (mortgage) $ (189) $ 249 $ (1,924) $ 3,243 Forward commitments 413 (44) 916 (228) Undesignated interest rate swaps 66 69 249 (293) |
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 HTLF's derivative instruments designated as cash flow hedges at December 31, 2020, in thousands: Notional Fair Balance Receive Weighted Maturity December 31, 2020 Interest rate swap $ 25,000 $ (127) Other liabilities 0.229 % 2.255 % 03/17/2021 Interest rate swap 21,667 (91) Other liabilities 2.649 3.674 05/10/2021 Interest rate swap 22,750 (2,220) Other liabilities 2.643 5.425 07/24/2028 Interest rate swap 20,000 (1,482) Other liabilities 0.217 2.390 06/15/2024 Interest rate swap 20,000 (1,385) Other liabilities 0.225 2.352 03/01/2024 Interest rate swap 6,000 (50) Other liabilities 0.217 1.866 06/15/2021 Interest rate swap 3,000 (25) Other liabilities 0.241 1.878 06/30/2021 |
Gains (Losses) on Derivative Instruments | The table below identifies the gains and losses recognized on HTLF's derivative instruments designated as cash flow hedges for the three- and nine-months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Effective Portion Gain (loss) recognized in other comprehensive income (loss) on interest rate swaps $ 3,792 $ (604) $ 5,380 $ (3,359) Gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) on interest rate swaps 358 595 1,403 1,195 |
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 HTLF's fair value hedges at September 30, 2021, and December 31, 2020, in thousands: Notional Amount Fair Value Balance Sheet Category September 30, 2021 Fair value hedges $ 16,829 $ (1,550) Other liabilities December 31, 2020 Fair value hedges $ 20,841 $ (2,480) Other liabilities |
Gains (Losses) on Derivative Instruments | The table below identifies the gains and losses recognized on HTLF's fair value hedges for the three- and nine-months ended September 30, 2021, and September 30, 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Gain (loss) recognized in interest income on fair value hedges $ 35 $ 26 $ 930 $ (1,647) |
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 the derivative instruments designated as loan swaps at September 30, 2021, and December 31, 2020, in thousands: Notional Fair Balance Sheet Weighted Weighted September 30, 2021 Customer interest rate swaps $ 428,782 $ 25,801 Other assets 4.49 % 2.41 % Customer interest rate swaps 428,782 (25,801) Other liabilities 2.41 4.49 December 31, 2020 Customer interest rate swaps $ 440,719 $ 43,422 Other assets 4.46 % 2.46 % Customer interest rate swaps 440,719 (43,422) Other liabilities 2.46 4.46 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents HTLFs assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021, and December 31, 2020, 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, 2021 Assets Securities available for sale U.S. treasuries $ 1,013 $ 1,013 $ — $ — U.S. agencies 35,033 — 35,033 — Obligations of states and political subdivisions 1,823,465 — 1,823,465 — Mortgage-backed securities - agency 2,371,264 — 2,371,264 — Mortgage-backed securities - non-agency 1,627,903 — 1,627,903 — Commercial mortgage-backed securities - agency 127,861 — 127,861 — Commercial mortgage-backed securities - non-agency 561,667 — 561,667 — Asset-backed securities 877,646 — 877,646 — Corporate bonds 3,294 — 3,294 — Equity securities with a readily determinable fair value 20,790 — 20,790 — Derivative financial instruments (1) 26,232 — 26,232 — Interest rate lock commitments 1,204 — — 1,204 Forward commitments 278 — 278 — Total assets at fair value $ 7,477,650 $ 1,013 $ 7,475,433 $ 1,204 Liabilities Derivative financial instruments (2) $ 27,782 $ — $ 27,782 $ — Forward commitments 59 — 59 — Total liabilities at fair value $ 27,841 $ — $ 27,841 $ — December 31, 2020 Assets Securities available for sale U.S. treasuries $ 2,026 $ 2,026 $ — $ — U.S. agencies 166,779 — 166,779 — Obligations of states and political subdivisions 1,635,227 — 1,635,227 — Mortgage-backed securities - agency 1,355,270 — 1,355,270 — Mortgage-backed securities - non-agency 1,449,116 — 1,449,116 — Commercial mortgage-backed securities - agency 174,153 — 174,153 — Commercial mortgage-backed securities - non-agency 252,767 — 252,767 — Asset-backed securities 1,069,266 — 1,069,266 — Corporate bonds 3,742 — 3,742 — Equity securities with a readily determinable fair value 19,629 — 19,629 — Derivative financial instruments (1) 44,102 — 44,102 — Interest rate lock commitments 1,827 — — 1,827 Total assets at fair value $ 6,173,904 $ 2,026 $ 6,170,051 $ 1,827 Liabilities Derivative financial instruments (2) $ 51,962 $ — $ 51,962 $ — Forward commitments 697 — 697 — Total liabilities at fair value $ 52,659 $ — $ 52,659 $ — (1) Includes embedded derivatives, back-to-back loan swaps and fair value 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 HTLF's assets that are measured at fair value on a nonrecurring basis, in thousands: Fair Value Measurements at September 30, 2021 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 10,270 $ — $ — $ 10,270 $ 248 Owner occupied commercial real estate 3,552 — — 3,552 — Non-owner occupied commercial real estate 15,212 — — 15,212 1,637 Agricultural and agricultural real estate 9,145 — — 9,145 — Total collateral dependent individually assessed loans $ 38,179 $ — $ — $ 38,179 $ 1,885 Loans held for sale $ 37,078 $ — $ 37,078 $ — $ (1,335) Other real estate owned 4,744 — — 4,744 (119) Premises, furniture and equipment held for sale 2,699 — — 2,699 (86) Servicing rights 5,801 — — 5,801 (586) Fair Value Measurements at Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 11,256 $ — $ — $ 11,256 $ 451 Owner occupied commercial real estate 5,874 — — 5,874 11,631 Non-owner occupied commercial real estate 4,907 — — 4,907 — Agricultural and agricultural real estate 12,451 — — 12,451 — Total collateral dependent individually assessed loans $ 34,488 $ — $ — $ 34,488 $ 12,082 Loans held for sale $ 57,949 $ — $ 57,949 $ — $ (982) Other real estate owned 6,624 — — 6,624 1,044 Premises, furniture and equipment held for sale 6,499 — — 6,499 3,288 Servicing rights 5,189 — — 5,189 1,778 |
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 HTLF has utilized Level 3 inputs to determine fair value, in thousands: Fair Value Valuation Unobservable Range Interest rate lock commitments $ 1,204 Discounted cash flows Closing ratio 0-99% (88%) (1) Other real estate owned 4,744 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,801 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 2,699 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial 10,270 Modified appraised value Third party appraisal (2) Appraisal discount 0-15% (3) Owner occupied commercial real estate 3,552 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Non-owner occupied commercial real estate 15,212 Modified appraised value Third party appraisal (2) Appraisal discount 0-11% (3) Agricultural and agricultural real estate 9,145 Modified appraised value Third party appraisal (2) Appraisal 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 Valuation Unobservable Range Interest rate lock commitments $ 1,827 Discounted cash flows Closing ratio 0-99% (86%) (1) Other real estate owned 6,624 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Servicing rights 5,189 Discounted cash flows Third party valuation (4) Premises, furniture and equipment held for sale 6,499 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Collateral dependent individually assessed loans: Commercial and industrial 11,256 Modified appraised value Third party appraisal (2) Appraisal discount 0-8% (3) Fair Value Valuation Unobservable Range Owner occupied commercial real estate $ 5,874 Modified appraised value Third party appraisal (2) Appraisal discount 0-12% (3) Non-owner occupied commercial real estate 4,907 Modified appraised value Third party appraisal (2) Appraisal discount 0-10% (3) Agricultural and agricultural real estate 12,451 Modified appraised value Third party appraisal (2) Appraisal 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, $ 1,827 $ 681 Total net gains included in earnings (1,924) 2,803 Issuances 12,548 17,221 Settlements (11,247) (18,878) Balance at period end $ 1,204 $ 1,827 |
Fair Value, by Balance Sheet Grouping | HTLF does not believe that the estimated information presented herein is representative of the earnings power or value of HTLF. 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 HTLF 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, 2021 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 327,405 $ 327,405 $ 327,405 $ — $ — Time deposits in other financial institutions 3,138 3,138 3,138 — — Securities: Carried at fair value 7,449,936 7,449,936 1,013 7,448,923 — Held to maturity 85,354 95,010 — 95,010 — Other investments 83,332 83,332 — 83,332 — Loans held for sale 37,078 37,078 — 37,078 — Loans, net: Commercial and industrial 2,510,461 2,498,314 — 2,488,044 10,270 PPP 409,247 409,247 — 409,247 — Owner occupied commercial real estate 2,116,099 2,119,011 — 2,115,459 3,552 Non-owner occupied commercial real estate 1,998,372 2,008,824 — 1,993,612 15,212 Real estate construction 790,303 803,298 — 803,298 — Agricultural and agricultural real estate 678,344 680,701 — 671,556 9,145 Residential real estate 831,118 831,021 — 831,021 — Consumer 403,430 408,147 — 408,147 — Total Loans, net 9,737,374 9,758,563 — 9,720,384 38,179 Cash surrender value on life insurance 190,576 190,576 — 190,576 — Derivative financial instruments (1) 26,232 26,232 — 26,232 — Interest rate lock commitments 1,204 1,204 — — 1,204 Forward commitments 278 278 — 278 — Financial liabilities: Deposits Demand deposits 6,537,722 6,537,722 — 6,537,722 — Savings deposits 8,416,204 8,416,204 — 8,416,204 — Time deposits 1,068,317 1,070,957 — 1,070,957 — Short term borrowings 265,620 265,620 — 265,620 — Other borrowings 371,765 372,902 — 372,902 — Derivative financial instruments (2) 27,782 27,782 — 27,782 — Forward commitments 59 59 — 59 — (1) Includes embedded derivatives, back-to-back loan swaps and fair value hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps and free standing derivative instruments. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 337,903 $ 337,903 $ 337,903 $ — $ — Time deposits in other financial institutions 3,129 3,129 3,129 — — Securities: Carried at fair value 6,127,975 6,127,975 2,026 6,125,949 — Held to maturity 88,839 100,041 — 100,041 — Other investments 75,253 75,523 — 75,523 — Loans held for sale 57,949 57,949 — 57,949 — Loans, net: Commercial and industrial 2,495,981 2,391,041 — 2,379,785 11,256 PPP 957,785 957,785 — 957,785 — Owner occupied commercial real estate 1,756,405 1,745,397 — 1,739,523 5,874 Non-owner occupied commercial real estate 1,900,608 1,892,213 — 1,887,306 4,907 Real estate construction 843,140 849,224 — 849,224 — Agricultural and agricultural real estate 707,397 697,729 — 685,278 12,451 Residential real estate 828,507 828,366 — 828,366 — Consumer 401,622 407,914 — 407,914 — Total Loans, net 9,891,445 9,769,669 — 9,735,181 34,488 Cash surrender value on life insurance 187,664 187,664 — 187,664 — Derivative financial instruments (1) 44,102 44,102 — 44,102 — Interest rate lock commitments 1,827 1,827 — — 1,827 Financial liabilities: Deposits Demand deposits 5,688,810 5,688,810 — 5,688,810 — Savings deposits 8,019,704 8,019,704 — 8,019,704 — Time deposits 1,271,391 1,273,468 — 1,273,468 — Short term borrowings 167,872 167,872 — 167,872 — Other borrowings 457,042 458,806 — 458,806 — Derivative financial instruments (1) 51,962 51,962 — 51,962 — Forward commitments 697 697 — 697 — (1) Includes embedded derivatives, back-to-back loan swaps and fair value hedges. (2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps and free standing derivative instruments. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of noninterest income in-scope and out-of-scope of Topic 606 | The following table 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, 2021, and 2020, in thousands: Three Months Ended Nine Months Ended 2021 2020 2021 2020 In-scope of Topic 606 Service charges and fees Service charges and fees on deposit accounts $ 4,146 $ 3,710 $ 12,096 $ 10,623 Overdraft fees 3,044 2,184 8,185 6,627 Customer service and other service fees 52 39 152 133 Credit card fee income 5,673 3,894 15,835 11,861 Debit card income 2,636 1,922 8,086 5,498 Total service charges and fees 15,551 11,749 44,354 34,742 Trust fees 6,221 5,357 18,037 15,356 Brokerage and insurance commissions 866 649 2,584 1,977 Total noninterest income in-scope of Topic 606 22,638 17,755 64,975 52,075 Out-of-scope of Topic 606 Loan servicing income $ 784 $ 638 $ 2,495 $ 1,980 Securities gains, net 1,535 1,300 4,347 4,964 Unrealized gain on equity securities, net 112 155 85 604 Net gains on sale of loans held for sale 5,281 8,894 16,454 21,411 Valuation adjustment on servicing rights 195 (120) 586 (1,676) Income on bank owned life insurance 940 868 2,706 2,533 Other noninterest income 1,239 1,726 4,557 5,779 Total noninterest income out-of-scope of Topic 606 10,086 13,461 31,230 35,595 Total noninterest income $ 32,724 $ 31,216 $ 96,205 $ 87,670 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Status of RSUs | A summary of the RSUs outstanding as of September 30, 2021, and September 30, 2020, and changes during the nine months ended September 30, 2021 and 2020, follows: 2021 2020 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 348,275 $ 38.22 254,383 $ 46.76 Granted 214,943 51.49 220,688 31.95 Vested (146,864) 40.87 (119,325) 44.49 Forfeited (24,088) 42.98 (15,674) 47.13 Outstanding at September 30, 392,266 $ 44.14 340,072 $ 38.37 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share | ||||
Net income | $ 55,924 | $ 47,958 | $ 170,343 | $ 98,129 |
Preferred dividends | (2,013) | (2,437) | (6,038) | (2,437) |
Net income available to common stockholders | $ 53,911 | $ 45,521 | $ 164,305 | $ 95,692 |
Weighted average common shares outstanding for basic earnings per share (in shares) | 42,303 | 36,941 | 42,241 | 36,882 |
Assumed incremental common shares issued upon vesting of outstanding restricted stock units (in shares) | 113 | 54 | 140 | 74 |
Weighted average common shares for diluted earnings per share (in shares) | 42,416 | 36,995 | 42,381 | 36,956 |
Earnings per common share — basic (in dollars per share) | $ 1.27 | $ 1.23 | $ 3.89 | $ 2.59 |
Earnings per common share — diluted (in dollars per share) | $ 1.27 | $ 1.23 | $ 3.88 | $ 2.59 |
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation (in shares) | 3 | 41 | 1 | 0 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 04, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Assets acquired | $ 18,996,225 | $ 17,908,339 | |
Gross loans held to maturity | 9,854,907 | 10,023,051 | |
Deposits acquired | $ 16,022,243 | $ 14,979,905 | |
Share price (USD per share) | $ 41.89 | ||
Johnson Bank Branches | Arizona Bank & Trust | |||
Business Acquisition [Line Items] | |||
Assets acquired | $ 419,700 | ||
Gross loans held to maturity | 150,700 | ||
Deposits acquired | 415,500 | ||
AIM Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Assets acquired | 1,970,000 | ||
Gross loans held to maturity | 1,090,000 | ||
Deposits acquired | $ 1,670,000 | ||
Number of shares issued In exchange per share (in shares) | $ 207 | ||
Share price (USD per share) | $ 1,887.16 | ||
Business combination, consideration transferred | $ 264,500 | ||
Consideration received, common stock | 217,200 | ||
Payments to acquire businesses, gross | 47,300 | ||
AIM Bancshares, Inc. | Holders Of In-The-Money Options | |||
Business Acquisition [Line Items] | |||
Consideration received, common stock | $ 4,900 |
SECURITIES (Securities availabl
SECURITIES (Securities available for sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | $ 94,955 | $ 127,866 |
Gross Unrealized Losses | (61,162) | (24,116) |
Equity securities with a readily determinable fair value | 20,790 | 19,629 |
Amortized Cost, Total | 7,416,143 | 6,024,225 |
Estimated Fair Value, Total | 7,449,936 | 6,127,975 |
Total debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,395,353 | 6,004,596 |
Gross Unrealized Gains | 94,955 | 127,866 |
Gross Unrealized Losses | (61,162) | (24,116) |
Estimated Fair Value | 7,429,146 | 6,108,346 |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 997 | 1,995 |
Gross Unrealized Gains | 16 | 31 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,013 | 2,026 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,453 | 167,048 |
Gross Unrealized Gains | 208 | 657 |
Gross Unrealized Losses | (628) | (926) |
Estimated Fair Value | 35,033 | 166,779 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,790,972 | 1,562,631 |
Gross Unrealized Gains | 53,601 | 75,555 |
Gross Unrealized Losses | (21,108) | (2,959) |
Estimated Fair Value | 1,823,465 | 1,635,227 |
Mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,387,792 | 1,351,964 |
Gross Unrealized Gains | 17,104 | 16,029 |
Gross Unrealized Losses | (33,632) | (12,723) |
Estimated Fair Value | 2,371,264 | 1,355,270 |
Mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,619,636 | 1,428,068 |
Gross Unrealized Gains | 9,760 | 22,688 |
Gross Unrealized Losses | (1,493) | (1,640) |
Estimated Fair Value | 1,627,903 | 1,449,116 |
Commercial mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 128,609 | 171,451 |
Gross Unrealized Gains | 2,021 | 3,440 |
Gross Unrealized Losses | (2,769) | (738) |
Estimated Fair Value | 127,861 | 174,153 |
Commercial mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 560,445 | 253,421 |
Gross Unrealized Gains | 1,612 | 37 |
Gross Unrealized Losses | (390) | (691) |
Estimated Fair Value | 561,667 | 252,767 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 868,215 | 1,064,255 |
Gross Unrealized Gains | 10,570 | 9,421 |
Gross Unrealized Losses | (1,139) | (4,410) |
Estimated Fair Value | 877,646 | 1,069,266 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,234 | 3,763 |
Gross Unrealized Gains | 63 | 8 |
Gross Unrealized Losses | (3) | (29) |
Estimated Fair Value | $ 3,294 | $ 3,742 |
SECURITIES (Held to maturity se
SECURITIES (Held to maturity securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||||||
Amortized Cost | $ 85,354 | $ 88,890 | ||||
Gross Unrealized Gains | 9,656 | 11,151 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Estimated Fair Value | 95,010 | 100,041 | ||||
Allowance for Credit Losses | 0 | (51) | ||||
Obligations of states and political subdivisions | ||||||
Schedule of Held-to-maturity Securities [Line Items] | ||||||
Amortized Cost | 85,354 | 88,890 | ||||
Gross Unrealized Gains | 9,656 | 11,151 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Estimated Fair Value | 95,010 | 100,041 | ||||
Allowance for Credit Losses | $ 0 | $ (51) | $ (51) | $ (61) | $ (62) | $ 0 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest receivable | $ 25,300,000 | $ 20,800,000 |
Fair value of securities pledged | 1,880,000,000 | 2,120,000,000 |
Securities held to maturity with unrealized losses | 0 | 0 |
Amortized cost of FHLBs | $ 21,900,000 | $ 19,500,000 |
SECURITIES (Securities availa_2
SECURITIES (Securities available for sale debt maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in 1 year or less | $ 12,487 | |
Due in 1 to 5 years | 19,354 | |
Due in 5 to 10 years | 238,253 | |
Due after 10 years | 1,560,562 | |
Total debt securities | 1,830,656 | |
Mortgage and asset-backed securities | 5,564,697 | |
Equity securities with a readily determinable fair value | 20,790 | $ 19,629 |
Total investment securities | 7,416,143 | |
Estimated Fair Value | ||
Due in 1 year or less | 12,527 | |
Due in 1 to 5 years | 20,278 | |
Due in 5 to 10 years | 241,971 | |
Due after 10 years | 1,588,029 | |
Total debt securities | 1,862,805 | |
Mortgage and asset-backed securities | 5,566,341 | |
Equity securities with a readily determinable fair value | 20,790 | |
Total investment securities | $ 7,449,936 |
SECURITIES (Securities held to
SECURITIES (Securities held to maturity debt maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in 1 year or less | $ 2,547 | |
Due in 1 to 5 years | 42,225 | |
Due in 5 to 10 years | 34,046 | |
Due after 10 years | 6,536 | |
Amortized Cost | 85,354 | $ 88,890 |
Estimated Fair Value | ||
Due in 1 year or less | 2,553 | |
Due in 1 to 5 years | 44,163 | |
Due in 5 to 10 years | 39,188 | |
Due after 10 years | 9,106 | |
Estimated Fair Value | $ 95,010 | $ 100,041 |
SECURITIES (Gross realized gain
SECURITIES (Gross realized gain (loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 169,108 | $ 306,383 | $ 799,588 | $ 818,022 |
Gross security gains | 1,591 | 1,825 | 5,880 | 8,687 |
Gross security losses | $ 56 | $ 726 | $ 1,533 | $ 3,924 |
SECURITIES (Debt securities ava
SECURITIES (Debt securities available for sale) (Details) $ in Thousands | Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 2,926,498 | $ 1,672,530 |
Unrealized Losses, Less than 12 months | $ (46,639) | $ (18,373) |
Count, Less than 12 months | security | 228 | 127 |
Fair Value, 12 months or longer | $ 469,345 | $ 508,436 |
Unrealized Losses, 12 months or longer | $ (14,523) | $ (5,743) |
Count, 12 months or longer | security | 43 | 103 |
Fair Value, Total | $ 3,395,843 | $ 2,180,966 |
Unrealized Losses, Total | $ (61,162) | $ (24,116) |
Count, Total | security | 271 | 230 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 18,861 | $ 2,981 |
Unrealized Losses, Less than 12 months | $ (628) | $ (8) |
Count, Less than 12 months | security | 1 | 5 |
Fair Value, 12 months or longer | $ 0 | $ 99,922 |
Unrealized Losses, 12 months or longer | $ 0 | $ (918) |
Count, 12 months or longer | security | 0 | 72 |
Fair Value, Total | $ 18,861 | $ 102,903 |
Unrealized Losses, Total | $ (628) | $ (926) |
Count, Total | security | 1 | 77 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 740,885 | $ 346,598 |
Unrealized Losses, Less than 12 months | $ (18,939) | $ (2,959) |
Count, Less than 12 months | security | 131 | 49 |
Fair Value, 12 months or longer | $ 47,453 | $ 0 |
Unrealized Losses, 12 months or longer | $ (2,169) | $ 0 |
Count, 12 months or longer | security | 13 | 0 |
Fair Value, Total | $ 788,338 | $ 346,598 |
Unrealized Losses, Total | $ (21,108) | $ (2,959) |
Count, Total | security | 144 | 49 |
Mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 1,413,527 | $ 653,793 |
Unrealized Losses, Less than 12 months | $ (21,898) | $ (12,342) |
Count, Less than 12 months | security | 58 | 35 |
Fair Value, 12 months or longer | $ 336,528 | $ 31,012 |
Unrealized Losses, 12 months or longer | $ (11,734) | $ (381) |
Count, 12 months or longer | security | 15 | 3 |
Fair Value, Total | $ 1,750,055 | $ 684,805 |
Unrealized Losses, Total | $ (33,632) | $ (12,723) |
Count, Total | security | 73 | 38 |
Mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 468,119 | $ 378,843 |
Unrealized Losses, Less than 12 months | $ (1,241) | $ (1,639) |
Count, Less than 12 months | security | 12 | 17 |
Fair Value, 12 months or longer | $ 48,728 | $ 1,622 |
Unrealized Losses, 12 months or longer | $ (252) | $ (1) |
Count, 12 months or longer | security | 5 | 1 |
Fair Value, Total | $ 516,847 | $ 380,465 |
Unrealized Losses, Total | $ (1,493) | $ (1,640) |
Count, Total | security | 17 | 18 |
Commercial mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 80,595 | $ 46,541 |
Unrealized Losses, Less than 12 months | $ (2,769) | $ (738) |
Count, Less than 12 months | security | 14 | 6 |
Fair Value, 12 months or longer | $ 0 | $ 0 |
Unrealized Losses, 12 months or longer | $ 0 | $ 0 |
Count, 12 months or longer | security | 0 | 0 |
Fair Value, Total | $ 80,595 | $ 46,541 |
Unrealized Losses, Total | $ (2,769) | $ (738) |
Count, Total | security | 14 | 6 |
Commercial mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 76,559 | $ 100,042 |
Unrealized Losses, Less than 12 months | $ (218) | $ (15) |
Count, Less than 12 months | security | 1 | 2 |
Fair Value, 12 months or longer | $ 14,944 | $ 35,428 |
Unrealized Losses, 12 months or longer | $ (172) | $ (676) |
Count, 12 months or longer | security | 2 | 3 |
Fair Value, Total | $ 91,503 | $ 135,470 |
Unrealized Losses, Total | $ (390) | $ (691) |
Count, Total | security | 3 | 5 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 127,455 | $ 141,824 |
Unrealized Losses, Less than 12 months | $ (943) | $ (643) |
Count, Less than 12 months | security | 10 | 9 |
Fair Value, 12 months or longer | $ 21,692 | $ 340,452 |
Unrealized Losses, 12 months or longer | $ (196) | $ (3,767) |
Count, 12 months or longer | security | 8 | 24 |
Fair Value, Total | $ 149,147 | $ 482,276 |
Unrealized Losses, Total | $ (1,139) | $ (4,410) |
Count, Total | security | 18 | 33 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 497 | $ 1,908 |
Unrealized Losses, Less than 12 months | $ (3) | $ (29) |
Count, Less than 12 months | security | 1 | 4 |
Fair Value, 12 months or longer | $ 0 | $ 0 |
Unrealized Losses, 12 months or longer | $ 0 | $ 0 |
Count, 12 months or longer | security | 0 | 0 |
Fair Value, Total | $ 497 | $ 1,908 |
Unrealized Losses, Total | $ (3) | $ (29) |
Count, Total | security | 1 | 4 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 51 | |||
Ending balance | $ 0 | 0 | ||
Obligations of states and political subdivisions | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 51 | $ 62 | 51 | $ 0 |
Provision (benefit) for credit losses | (51) | (1) | (51) | (97) |
Ending balance | $ 0 | $ 61 | 0 | 61 |
Obligations of states and political subdivisions | Impact of ASU 2016-13 adoption | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 158 | ||
Obligations of states and political subdivisions | Adjusted balance at January 1, 2020 | ||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 51 | $ 158 |
SECURITIES (Schedule of financi
SECURITIES (Schedule of financing receivable credit quality indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 85,354 | $ 88,890 |
Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 85,354 | 88,890 |
AAA | Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,236 | 0 |
AA, AA+, AA- | Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 61,793 | 64,385 |
A+, A, A- | Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 14,933 | 18,353 |
BBB | Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,914 | 4,208 |
Not Rated | Obligations of states and political subdivisions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 478 | $ 1,944 |
LOANS (Loans receivable) (Detai
LOANS (Loans receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans and Leases [Line Items] | ||||||
Held to maturity | $ 9,854,907 | $ 10,023,051 | ||||
Allowance for credit losses | (117,533) | $ (120,726) | (131,606) | $ (103,377) | $ (119,937) | $ (70,395) |
Loans receivable, net | 9,737,374 | 9,891,445 | ||||
Accrued interest receivable | 37,400 | 42,400 | ||||
Commercial and industrial | Commercial and industrial | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 2,538,369 | 2,534,799 | ||||
Allowance for credit losses | (27,908) | (31,332) | (38,818) | (34,581) | (32,518) | (34,207) |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 409,247 | 957,785 | ||||
Allowance for credit losses | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial and industrial | Owner occupied commercial real estate | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 2,135,227 | 1,776,406 | ||||
Allowance for credit losses | (19,128) | (19,990) | (20,001) | (11,229) | (23,402) | (7,921) |
Commercial and industrial | Non-owner occupied commercial real estate | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 2,020,487 | 1,921,481 | ||||
Allowance for credit losses | (22,115) | (22,828) | (20,873) | (12,127) | (10,161) | (7,584) |
Commercial and industrial | Real estate construction | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 814,001 | 863,220 | ||||
Allowance for credit losses | (23,698) | (19,580) | (20,080) | (20,787) | (28,667) | (8,677) |
Agricultural and agricultural real estate | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 684,670 | 714,526 | ||||
Allowance for credit losses | (6,326) | (7,160) | (7,129) | (5,342) | (5,701) | (5,680) |
Residential real estate | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 840,356 | 840,442 | ||||
Allowance for credit losses | (9,238) | (9,741) | (11,935) | (9,671) | (9,304) | (1,504) |
Consumer | ||||||
Loans and Leases [Line Items] | ||||||
Held to maturity | 412,550 | 414,392 | ||||
Allowance for credit losses | $ (9,120) | $ (10,095) | $ (12,770) | $ (9,640) | $ (10,184) | $ (4,822) |
LOANS (Financing receivables, n
LOANS (Financing receivables, non accrual status narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total exposure on lending relationships (or more) | $ 0.5 | |
Troubled debt restructured loans | 13.2 | $ 6.2 |
Nonperforming | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Troubled debt restructured loans | 11.4 | 3.8 |
Performing | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Troubled debt restructured loans | $ 1.8 | $ 2.4 |
LOANS (Allowance for credit los
LOANS (Allowance for credit losses on financing receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | $ 10,729 | $ 9,426 | ||||
Collectively Evaluated for Credit Losses | 106,804 | 122,180 | ||||
Total | 117,533 | $ 120,726 | 131,606 | $ 103,377 | $ 119,937 | $ 70,395 |
Loans Individually Evaluated for Credit Losses | 58,921 | 57,230 | ||||
Loans Collectively Evaluated for Credit Losses | 9,795,986 | 9,965,821 | ||||
Total | 9,854,907 | 10,023,051 | ||||
Commercial and industrial | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 4,710 | 4,077 | ||||
Collectively Evaluated for Credit Losses | 23,198 | 34,741 | ||||
Total | 27,908 | 31,332 | 38,818 | 34,581 | 32,518 | 34,207 |
Loans Individually Evaluated for Credit Losses | 15,524 | 16,578 | ||||
Loans Collectively Evaluated for Credit Losses | 2,522,845 | 2,518,221 | ||||
Total | 2,538,369 | 2,534,799 | ||||
Commercial and industrial | Paycheck Protection Program ("PPP") | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 0 | 0 | ||||
Total | 0 | 0 | 0 | 0 | 0 | 0 |
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 409,247 | 957,785 | ||||
Total | 409,247 | 957,785 | ||||
Commercial and industrial | Owner occupied commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 110 | 111 | ||||
Collectively Evaluated for Credit Losses | 19,018 | 19,890 | ||||
Total | 19,128 | 19,990 | 20,001 | 11,229 | 23,402 | 7,921 |
Loans Individually Evaluated for Credit Losses | 10,166 | 11,174 | ||||
Loans Collectively Evaluated for Credit Losses | 2,125,061 | 1,765,232 | ||||
Total | 2,135,227 | 1,776,406 | ||||
Commercial and industrial | Non-owner occupied commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 2,847 | 3,250 | ||||
Collectively Evaluated for Credit Losses | 19,268 | 17,623 | ||||
Total | 22,115 | 22,828 | 20,873 | 12,127 | 10,161 | 7,584 |
Loans Individually Evaluated for Credit Losses | 19,314 | 13,490 | ||||
Loans Collectively Evaluated for Credit Losses | 2,001,173 | 1,907,991 | ||||
Total | 2,020,487 | 1,921,481 | ||||
Commercial and industrial | Real estate construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 23,698 | 20,080 | ||||
Total | 23,698 | 19,580 | 20,080 | 20,787 | 28,667 | 8,677 |
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 814,001 | 863,220 | ||||
Total | 814,001 | 863,220 | ||||
Agricultural and agricultural real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 3,062 | 1,988 | ||||
Collectively Evaluated for Credit Losses | 3,264 | 5,141 | ||||
Total | 6,326 | 7,160 | 7,129 | 5,342 | 5,701 | 5,680 |
Loans Individually Evaluated for Credit Losses | 13,917 | 15,453 | ||||
Loans Collectively Evaluated for Credit Losses | 670,753 | 699,073 | ||||
Total | 684,670 | 714,526 | ||||
Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 9,238 | 11,935 | ||||
Total | 9,238 | 9,741 | 11,935 | 9,671 | 9,304 | 1,504 |
Loans Individually Evaluated for Credit Losses | 0 | 535 | ||||
Loans Collectively Evaluated for Credit Losses | 840,356 | 839,907 | ||||
Total | 840,356 | 840,442 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 9,120 | 12,770 | ||||
Total | 9,120 | $ 10,095 | 12,770 | $ 9,640 | $ 10,184 | $ 4,822 |
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 412,550 | 414,392 | ||||
Total | $ 412,550 | $ 414,392 |
LOANS (Troubled debt restructur
LOANS (Troubled debt restructuring) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 2 | 2 | 4 |
Pre- Modification Recorded Investment | $ 0 | $ 9,454 | $ 7,850 | $ 9,546 |
Post- Modification Recorded Investment | $ 0 | $ 9,454 | $ 7,850 | $ 9,552 |
Commercial and industrial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 0 | 1 |
Pre- Modification Recorded Investment | $ 0 | $ 20 | $ 0 | $ 20 |
Post- Modification Recorded Investment | $ 0 | $ 20 | $ 0 | $ 20 |
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 |
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 |
Commercial and industrial | Non-owner occupied commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 1 |
Pre- Modification Recorded Investment | $ 0 | $ 9,434 | $ 7,850 | $ 9,434 |
Post- Modification Recorded Investment | $ 0 | $ 9,434 | $ 7,850 | $ 9,434 |
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 |
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 |
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 2 |
Pre- Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 92 |
Post- Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 98 |
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 |
Loans (Troubled debt restruct_2
Loans (Troubled debt restructuring, payment defaults) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 236 |
Commercial and industrial | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 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 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | Non-owner occupied commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | Real Estate Construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Agricultural and agricultural real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 236 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS (Troubled debt narrative)
LOANS (Troubled debt narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Dec. 31, 2020loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Troubled debt restructured loans modified during the twelve-month period prior to default | $ | $ 0 | $ 0 | $ 0 | $ 236 | |
Doubtful | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Number of loan relationships | loan | 0 | 0 | 0 |
LOANS (Loans by credit quality
LOANS (Loans by credit quality indicator) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | $ 2,682,523 | $ 3,119,680 |
Year Two | 1,807,056 | 1,842,640 |
Year Three | 1,407,474 | 1,287,023 |
Year Four | 870,616 | 842,221 |
Year Five | 645,781 | 485,454 |
Year Six and Prior | 1,250,873 | 1,254,784 |
Revolving | 1,190,584 | 1,191,249 |
Total | 9,854,907 | 10,023,051 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 2,555,629 | 2,847,203 |
Year Two | 1,679,770 | 1,649,219 |
Year Three | 1,249,457 | 1,131,756 |
Year Four | 715,272 | 727,712 |
Year Five | 570,128 | 408,380 |
Year Six and Prior | 1,074,513 | 1,091,908 |
Revolving | 1,108,787 | 1,084,202 |
Total | 8,953,556 | 8,940,380 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 57,811 | 129,037 |
Year Two | 75,614 | 141,385 |
Year Three | 98,095 | 80,970 |
Year Four | 117,743 | 58,813 |
Year Five | 30,611 | 44,512 |
Year Six and Prior | 70,952 | 76,144 |
Revolving | 40,349 | 74,056 |
Total | 491,175 | 604,917 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 69,083 | 143,440 |
Year Two | 51,672 | 52,036 |
Year Three | 59,922 | 74,297 |
Year Four | 37,601 | 55,696 |
Year Five | 45,042 | 32,562 |
Year Six and Prior | 105,408 | 86,732 |
Revolving | 41,448 | 32,991 |
Total | 410,176 | 477,754 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 488,043 | 622,451 |
Year Two | 425,017 | 381,759 |
Year Three | 268,350 | 197,442 |
Year Four | 120,928 | 245,675 |
Year Five | 196,484 | 118,180 |
Year Six and Prior | 376,816 | 359,845 |
Revolving | 662,731 | 609,447 |
Total | 2,538,369 | 2,534,799 |
Commercial and industrial | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 460,258 | 557,853 |
Year Two | 401,606 | 340,809 |
Year Three | 239,419 | 168,873 |
Year Four | 100,840 | 215,696 |
Year Five | 179,241 | 101,010 |
Year Six and Prior | 343,238 | 337,834 |
Revolving | 602,155 | 541,627 |
Total | 2,326,757 | 2,263,702 |
Commercial and industrial | Commercial and industrial | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 13,274 | 41,574 |
Year Two | 14,096 | 24,676 |
Year Three | 13,982 | 19,672 |
Year Four | 11,230 | 14,262 |
Year Five | 6,363 | 8,072 |
Year Six and Prior | 16,657 | 2,474 |
Revolving | 30,157 | 49,432 |
Total | 105,759 | 160,162 |
Commercial and industrial | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 14,511 | 23,024 |
Year Two | 9,315 | 16,274 |
Year Three | 14,949 | 8,897 |
Year Four | 8,858 | 15,717 |
Year Five | 10,880 | 9,098 |
Year Six and Prior | 16,921 | 19,537 |
Revolving | 30,419 | 18,388 |
Total | 105,853 | 110,935 |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 336,308 | 957,785 |
Year Two | 72,939 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Year Six and Prior | 0 | 0 |
Revolving | 0 | 0 |
Total | 409,247 | 957,785 |
Commercial and industrial | Paycheck Protection Program ("PPP") | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 297,218 | 880,709 |
Year Two | 59,481 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Year Six and Prior | 0 | 0 |
Revolving | 0 | 0 |
Total | 356,699 | 880,709 |
Commercial and industrial | Paycheck Protection Program ("PPP") | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 19,656 | 22,533 |
Year Two | 11,210 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Year Six and Prior | 0 | 0 |
Revolving | 0 | 0 |
Total | 30,866 | 22,533 |
Commercial and industrial | Paycheck Protection Program ("PPP") | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 19,434 | 54,543 |
Year Two | 2,248 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Year Six and Prior | 0 | 0 |
Revolving | 0 | 0 |
Total | 21,682 | 54,543 |
Commercial and industrial | Owner occupied commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 686,705 | 431,921 |
Year Two | 412,865 | 392,687 |
Year Three | 364,187 | 334,894 |
Year Four | 229,112 | 202,428 |
Year Five | 158,448 | 124,531 |
Year Six and Prior | 250,861 | 250,770 |
Revolving | 33,049 | 39,175 |
Total | 2,135,227 | 1,776,406 |
Commercial and industrial | Owner occupied commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 679,698 | 400,662 |
Year Two | 378,366 | 369,401 |
Year Three | 337,572 | 300,242 |
Year Four | 207,982 | 167,470 |
Year Five | 128,973 | 107,234 |
Year Six and Prior | 220,013 | 213,780 |
Revolving | 29,446 | 33,759 |
Total | 1,982,050 | 1,592,548 |
Commercial and industrial | Owner occupied commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 2,517 | 15,345 |
Year Two | 16,981 | 13,764 |
Year Three | 13,277 | 22,488 |
Year Four | 18,264 | 20,811 |
Year Five | 15,618 | 8,717 |
Year Six and Prior | 9,216 | 15,282 |
Revolving | 1,853 | 4,311 |
Total | 77,726 | 100,718 |
Commercial and industrial | Owner occupied commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 4,490 | 15,914 |
Year Two | 17,518 | 9,522 |
Year Three | 13,338 | 12,164 |
Year Four | 2,866 | 14,147 |
Year Five | 13,857 | 8,580 |
Year Six and Prior | 21,632 | 21,708 |
Revolving | 1,750 | 1,105 |
Total | 75,451 | 83,140 |
Commercial and industrial | Non-owner occupied commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 425,727 | 388,447 |
Year Two | 349,453 | 481,561 |
Year Three | 423,480 | 353,464 |
Year Four | 312,544 | 229,871 |
Year Five | 188,566 | 138,171 |
Year Six and Prior | 282,891 | 299,885 |
Revolving | 37,826 | 30,082 |
Total | 2,020,487 | 1,921,481 |
Commercial and industrial | Non-owner occupied commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 394,782 | 334,722 |
Year Two | 316,992 | 411,301 |
Year Three | 353,092 | 305,456 |
Year Four | 274,618 | 194,101 |
Year Five | 166,123 | 108,070 |
Year Six and Prior | 199,072 | 233,153 |
Revolving | 37,518 | 24,466 |
Total | 1,742,197 | 1,611,269 |
Commercial and industrial | Non-owner occupied commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 12,832 | 22,826 |
Year Two | 17,170 | 55,225 |
Year Three | 48,377 | 24,718 |
Year Four | 35,098 | 18,724 |
Year Five | 7,595 | 20,954 |
Year Six and Prior | 35,783 | 45,672 |
Revolving | 0 | 5,114 |
Total | 156,855 | 193,233 |
Commercial and industrial | Non-owner occupied commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 18,113 | 30,899 |
Year Two | 15,291 | 15,035 |
Year Three | 22,011 | 23,290 |
Year Four | 2,828 | 17,046 |
Year Five | 14,848 | 9,147 |
Year Six and Prior | 48,036 | 21,060 |
Revolving | 308 | 502 |
Total | 121,435 | 116,979 |
Commercial and industrial | Real estate construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 242,239 | 313,926 |
Year Two | 282,949 | 339,097 |
Year Three | 192,647 | 161,610 |
Year Four | 64,487 | 12,957 |
Year Five | 8,501 | 7,048 |
Year Six and Prior | 9,797 | 5,856 |
Revolving | 13,381 | 22,726 |
Total | 814,001 | 863,220 |
Commercial and industrial | Real estate construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 240,048 | 311,625 |
Year Two | 282,023 | 309,678 |
Year Three | 177,594 | 157,171 |
Year Four | 15,228 | 12,625 |
Year Five | 8,501 | 6,954 |
Year Six and Prior | 9,628 | 5,110 |
Revolving | 13,269 | 21,431 |
Total | 746,291 | 824,594 |
Commercial and industrial | Real estate construction | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 2,191 | 2,105 |
Year Two | 876 | 26,659 |
Year Three | 15,006 | 2,403 |
Year Four | 47,267 | 332 |
Year Five | 0 | 55 |
Year Six and Prior | 0 | 388 |
Revolving | 112 | 1,295 |
Total | 65,452 | 33,237 |
Commercial and industrial | Real estate construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 196 |
Year Two | 50 | 2,760 |
Year Three | 47 | 2,036 |
Year Four | 1,992 | 0 |
Year Five | 0 | 39 |
Year Six and Prior | 169 | 358 |
Revolving | 0 | 0 |
Total | 2,258 | 5,389 |
Agricultural and agricultural real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 186,916 | 209,481 |
Year Two | 131,717 | 114,190 |
Year Three | 81,406 | 94,722 |
Year Four | 59,019 | 48,458 |
Year Five | 28,726 | 25,058 |
Year Six and Prior | 53,016 | 50,805 |
Revolving | 143,870 | 171,812 |
Total | 684,670 | 714,526 |
Agricultural and agricultural real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 174,014 | 171,578 |
Year Two | 114,928 | 90,944 |
Year Three | 66,869 | 62,349 |
Year Four | 37,763 | 39,252 |
Year Five | 24,751 | 17,626 |
Year Six and Prior | 39,479 | 37,696 |
Revolving | 128,684 | 148,456 |
Total | 586,488 | 567,901 |
Agricultural and agricultural real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 5,343 | 20,500 |
Year Two | 10,435 | 16,202 |
Year Three | 5,967 | 8,854 |
Year Four | 3,013 | 2,448 |
Year Five | 38 | 3,515 |
Year Six and Prior | 3,711 | 3,157 |
Revolving | 6,840 | 12,282 |
Total | 35,347 | 66,958 |
Agricultural and agricultural real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 7,559 | 17,403 |
Year Two | 6,354 | 7,044 |
Year Three | 8,570 | 23,519 |
Year Four | 18,243 | 6,758 |
Year Five | 3,937 | 3,917 |
Year Six and Prior | 9,826 | 9,952 |
Revolving | 8,346 | 11,074 |
Total | 62,835 | 79,667 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 257,102 | 157,983 |
Year Two | 108,716 | 104,389 |
Year Three | 59,880 | 123,549 |
Year Four | 72,609 | 86,958 |
Year Five | 52,809 | 67,478 |
Year Six and Prior | 256,766 | 265,518 |
Revolving | 32,474 | 34,567 |
Total | 840,356 | 840,442 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 251,931 | 153,017 |
Year Two | 103,529 | 99,440 |
Year Three | 58,179 | 118,854 |
Year Four | 68,551 | 83,534 |
Year Five | 50,817 | 63,477 |
Year Six and Prior | 244,641 | 244,852 |
Revolving | 32,474 | 33,467 |
Total | 810,122 | 796,641 |
Residential real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 1,086 | 3,986 |
Year Two | 4,650 | 4,507 |
Year Three | 1,205 | 2,188 |
Year Four | 1,503 | 1,896 |
Year Five | 807 | 3,117 |
Year Six and Prior | 5,043 | 8,525 |
Revolving | 0 | 0 |
Total | 14,294 | 24,219 |
Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 4,085 | 980 |
Year Two | 537 | 442 |
Year Three | 496 | 2,507 |
Year Four | 2,555 | 1,528 |
Year Five | 1,185 | 884 |
Year Six and Prior | 7,082 | 12,141 |
Revolving | 0 | 1,100 |
Total | 15,940 | 19,582 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 59,483 | 37,686 |
Year Two | 23,400 | 28,957 |
Year Three | 17,524 | 21,342 |
Year Four | 11,917 | 15,874 |
Year Five | 12,247 | 4,988 |
Year Six and Prior | 20,726 | 22,105 |
Revolving | 267,253 | 283,440 |
Total | 412,550 | 414,392 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 57,680 | 37,037 |
Year Two | 22,845 | 27,646 |
Year Three | 16,732 | 18,811 |
Year Four | 10,290 | 15,034 |
Year Five | 11,722 | 4,009 |
Year Six and Prior | 18,442 | 19,483 |
Revolving | 265,241 | 280,996 |
Total | 402,952 | 403,016 |
Consumer | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 912 | 168 |
Year Two | 196 | 352 |
Year Three | 281 | 647 |
Year Four | 1,368 | 340 |
Year Five | 190 | 82 |
Year Six and Prior | 542 | 646 |
Revolving | 1,387 | 1,622 |
Total | 4,876 | 3,857 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 891 | 481 |
Year Two | 359 | 959 |
Year Three | 511 | 1,884 |
Year Four | 259 | 500 |
Year Five | 335 | 897 |
Year Six and Prior | 1,742 | 1,976 |
Revolving | 625 | 822 |
Total | $ 4,722 | $ 7,519 |
LOANS (Loans by credit qualit_2
LOANS (Loans by credit quality indicator narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Held to maturity | $ 9,854,907,000 | $ 9,854,907,000 | $ 10,023,051,000 | |||||
Allowance for credit loss | 117,533,000 | $ 103,377,000 | 117,533,000 | $ 103,377,000 | $ 120,726,000 | $ 131,606,000 | $ 119,937,000 | $ 70,395,000 |
Loans secured by residential real estate property in process of foreclosure | $ 712,000 | $ 712,000 | ||||||
Loans delinquent 30 to 89 days, percentage | 0.12% | 0.12% | 0.23% | |||||
Interest income on nonaccrual loans | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Nonaccrual loans with no related allowance | 28,600,000 | 28,600,000 | $ 32,500,000 | |||||
Nonpass | Paycheck Protection Program ("PPP") | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Held to maturity | 52,500,000 | 52,500,000 | $ 77,100,000 | |||||
Allowance for credit loss | $ 0 | $ 0 |
LOANS (Past due financing recei
LOANS (Past due financing receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 12,574 | $ 23,601 |
Current | 9,759,958 | 9,912,064 |
Nonaccrual | 82,375 | 87,386 |
Total | 9,854,907 | 10,023,051 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,051 | 17,400 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,662 | 5,481 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 861 | 720 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,180 | 8,867 |
Current | 2,513,785 | 2,504,170 |
Nonaccrual | 19,404 | 21,762 |
Total | 2,538,369 | 2,534,799 |
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,800 | 5,825 |
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 653 | 2,322 |
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 727 | 720 |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Current | 409,247 | 957,784 |
Nonaccrual | 0 | 0 |
Total | 409,247 | 957,785 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | Owner occupied commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,213 | 2,982 |
Current | 2,120,755 | 1,759,649 |
Nonaccrual | 12,259 | 13,775 |
Total | 2,135,227 | 1,776,406 |
Commercial and industrial | Owner occupied commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,255 | 2,815 |
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 952 | 167 |
Commercial and industrial | Owner occupied commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6 | 0 |
Commercial and industrial | Non-owner occupied commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 67 | 4,817 |
Current | 1,999,904 | 1,902,003 |
Nonaccrual | 20,516 | 14,661 |
Total | 2,020,487 | 1,921,481 |
Commercial and industrial | Non-owner occupied commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 41 | 2,143 |
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 26 | 2,674 |
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 | 203 | 2,542 |
Current | 813,343 | 859,784 |
Nonaccrual | 455 | 894 |
Total | 814,001 | 863,220 |
Commercial and industrial | Real estate construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 50 | 2,446 |
Commercial and industrial | Real estate construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 101 | 96 |
Commercial and industrial | Real estate construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 52 | 0 |
Agricultural and agricultural real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 625 | 1,688 |
Current | 668,065 | 694,150 |
Nonaccrual | 15,980 | 18,688 |
Total | 684,670 | 714,526 |
Agricultural and agricultural real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 625 | 1,688 |
Agricultural and agricultural real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural and agricultural real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,147 | 1,758 |
Current | 825,013 | 825,047 |
Nonaccrual | 12,196 | 13,637 |
Total | 840,356 | 840,442 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,168 | 1,675 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 903 | 83 |
Residential real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 76 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,139 | 946 |
Current | 409,846 | 409,477 |
Nonaccrual | 1,565 | 3,969 |
Total | 412,550 | 414,392 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,112 | 807 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 27 | 139 |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
LOANS (Carrying amount of loans
LOANS (Carrying amount of loans acquired narrative) (Details) $ in Millions | Dec. 04, 2020USD ($) |
Johnson Bank Branches | |
Business Acquisition [Line Items] | |
Estimated fair value of loans acquired | $ 150.7 |
AIM Bancshares, Inc. | |
Business Acquisition [Line Items] | |
Estimated fair value of loans acquired | $ 1,090 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 120,726 | $ 119,937 | $ 131,606 | $ 70,395 |
Charge-offs | (1,167) | (21,753) | (6,790) | (31,618) |
Recoveries | 2,422 | 452 | 3,615 | 2,916 |
Provision (benefit) | (4,448) | 4,741 | (10,898) | 49,613 |
Ending Balance | 117,533 | 103,377 | 117,533 | 103,377 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Beginning balance | 14,002 | 17,392 | 15,280 | 248 |
Provision (benefit) | (35) | (3,062) | (1,313) | 478 |
Ending balance | 13,967 | 14,330 | 13,967 | 14,330 |
Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 12,071 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Beginning balance | 0 | 13,604 | ||
Adjusted balance at January 1, 2020 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 82,466 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Beginning balance | 15,280 | 13,852 | ||
Agricultural and Agricultural Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 7,160 | 5,701 | 7,129 | 5,680 |
Charge-offs | (195) | (936) | (870) | (1,190) |
Recoveries | 466 | 1 | 487 | 827 |
Provision (benefit) | (1,105) | 576 | (420) | 412 |
Ending Balance | 6,326 | 5,342 | 6,326 | 5,342 |
Agricultural and Agricultural Real Estate | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (387) | |||
Agricultural and Agricultural Real Estate | Adjusted balance at January 1, 2020 | ||||
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 | 9,741 | 9,304 | 11,935 | 1,504 |
Charge-offs | (22) | (54) | (113) | (368) |
Recoveries | 2 | 2 | 7 | 97 |
Provision (benefit) | (483) | 419 | (2,591) | 3,621 |
Ending Balance | 9,238 | 9,671 | 9,238 | 9,671 |
Residential Real Estate | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 4,817 | |||
Residential Real Estate | Adjusted balance at January 1, 2020 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6,321 | |||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 10,095 | 10,184 | 12,770 | 4,822 |
Charge-offs | (725) | (522) | (2,032) | (1,715) |
Recoveries | 333 | 153 | 826 | 671 |
Provision (benefit) | (583) | (175) | (2,444) | 1,553 |
Ending Balance | 9,120 | 9,640 | 9,120 | 9,640 |
Consumer | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 4,309 | |||
Consumer | Adjusted balance at January 1, 2020 | ||||
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 | 31,332 | 32,518 | 38,818 | 34,207 |
Charge-offs | (106) | (6,888) | (1,896) | (14,655) |
Recoveries | 1,553 | 283 | 2,111 | 893 |
Provision (benefit) | (4,871) | 8,668 | (11,125) | 14,408 |
Ending Balance | 27,908 | 34,581 | 27,908 | 34,581 |
Commercial and Industrial | Commercial and industrial | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (272) | |||
Commercial and Industrial | Commercial and industrial | Adjusted balance at January 1, 2020 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 33,935 | |||
Paycheck Protection Program ("PPP") | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (benefit) | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Paycheck Protection Program ("PPP") | Commercial and industrial | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 0 | |||
Paycheck Protection Program ("PPP") | Commercial and industrial | Adjusted balance at January 1, 2020 | ||||
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 | 19,990 | 23,402 | 20,001 | 7,921 |
Charge-offs | (119) | (13,328) | (232) | (13,541) |
Recoveries | 46 | 1 | 143 | 193 |
Provision (benefit) | (789) | 1,154 | (784) | 16,770 |
Ending Balance | 19,128 | 11,229 | 19,128 | 11,229 |
Owner occupied commercial real estate | Commercial and industrial | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (114) | |||
Owner occupied commercial real estate | Commercial and industrial | Adjusted balance at January 1, 2020 | ||||
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 | 22,828 | 10,161 | 20,873 | 7,584 |
Charge-offs | 0 | (25) | (1,637) | (44) |
Recoveries | 20 | 10 | 33 | 18 |
Provision (benefit) | (733) | 1,981 | 2,846 | 7,186 |
Ending Balance | 22,115 | 12,127 | 22,115 | 12,127 |
Non-owner occupied commercial real estate | Commercial and industrial | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (2,617) | |||
Non-owner occupied commercial real estate | Commercial and industrial | Adjusted balance at January 1, 2020 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 4,967 | |||
Real Estate Construction | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 19,580 | 28,667 | 20,080 | 8,677 |
Charge-offs | 0 | 0 | (10) | (105) |
Recoveries | 2 | 2 | 8 | 217 |
Provision (benefit) | 4,116 | (7,882) | 3,620 | 5,663 |
Ending Balance | $ 23,698 | $ 20,787 | $ 23,698 | 20,787 |
Real Estate Construction | Commercial and industrial | Impact of ASU 2016-13 adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6,335 | |||
Real Estate Construction | Commercial and industrial | Adjusted balance at January 1, 2020 | ||||
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 ($) | Dec. 04, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||||
Goodwill | $ 576,005,000 | $ 576,005,000 | ||
Goodwill impairment | $ 0 | |||
AIM Bancshares, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 91,400,000 | |||
AIM Bancshares, Inc. | Core Deposits | ||||
Goodwill [Line Items] | ||||
Intangibles recognized | $ 3,100,000 | |||
Intangibles, amortization period | 10 years | |||
Johnson Bank Branches | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 38,400,000 | |||
Johnson Bank Branches | Core Deposits | ||||
Goodwill [Line Items] | ||||
Intangibles recognized | $ 1,300,000 | |||
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, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 121,739 | $ 120,684 |
Accumulated Amortization | 80,231 | 72,249 |
Net Carrying Amount | 41,508 | 48,435 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 101,185 | 101,185 |
Accumulated Amortization | 66,169 | 58,970 |
Net Carrying Amount | 35,016 | 42,215 |
Customer relationship intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,177 | 1,177 |
Accumulated Amortization | 1,036 | 1,009 |
Net Carrying Amount | 141 | 168 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,323 | 11,268 |
Accumulated Amortization | 6,522 | 6,079 |
Net Carrying Amount | 5,801 | 5,189 |
Commercial servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,054 | 7,054 |
Accumulated Amortization | 6,504 | 6,191 |
Net Carrying Amount | $ 550 | $ 863 |
GOODWILL, CORE DEPOSIT PREMIU_5
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Estimated future amortization expense for amortizable intangible assets) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2021 | $ 2,524 |
Year ending December 31, | |
2022 | 9,291 |
2023 | 8,080 |
2024 | 6,697 |
2025 | 5,614 |
2026 | 4,122 |
Thereafter | 5,180 |
Total | 41,508 |
Core Deposit Intangibles | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2021 | 2,160 |
Year ending December 31, | |
2022 | 7,702 |
2023 | 6,739 |
2024 | 5,591 |
2025 | 4,700 |
2026 | 3,533 |
Thereafter | 4,591 |
Total | 35,016 |
Customer Relationship Intangibles | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2021 | 9 |
Year ending December 31, | |
2022 | 34 |
2023 | 33 |
2024 | 33 |
2025 | 32 |
2026 | 0 |
Thereafter | 0 |
Total | 141 |
Mortgage Servicing Rights | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2021 | 304 |
Year ending December 31, | |
2022 | 1,374 |
2023 | 1,178 |
2024 | 982 |
2025 | 785 |
2026 | 589 |
Thereafter | 589 |
Total | 5,801 |
Commercial Servicing Rights | |
Future amortization expense for amortizable intangible assets [Line Items] | |
Three months ending December 31, 2021 | 51 |
Year ending December 31, | |
2022 | 181 |
2023 | 130 |
2024 | 91 |
2025 | 97 |
2026 | 0 |
Thereafter | 0 |
Total | $ 550 |
GOODWILL, CORE DEPOSIT PREMIU_6
GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Mortgage and commercial loans servicing narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Valuation servicing rights in tranches [Line Items] | |||||
Mortgage loans serviced for others | $ 711,600,000 | $ 711,600,000 | $ 743,300,000 | ||
Custodial escrow balances maintained | 16,200,000 | 16,200,000 | 5,700,000 | ||
Loans guaranteed and sold with servicing retained | 6,351,000 | 6,351,000 | 6,052,000 | ||
Valuation allowance | 1,700,000 | ||||
Mortgage servicing rights | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Fair value of mortgage servicing rights | 5,800,000 | $ 5,800,000 | $ 5,200,000 | ||
Average constant prepayment rate (as a percent) | 14.80% | 16.20% | |||
Servicing assets, discount rate (as a percent) | 9.02% | 9.02% | |||
Fees collected for servicing of mortgage loans | $ 446,000 | $ 443,000 | $ 1,400,000 | $ 1,300,000 | |
Mortgage servicing rights | Measurement Input, Cap Rate | Minimum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average capitalization rate (percent) | 0.0076 | 0.0076 | 0.0076 | 0.0076 | |
Mortgage servicing rights | Measurement Input, Cap Rate | Maximum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average capitalization rate (percent) | 0.0120 | 0.0116 | 0.0120 | 0.0116 | |
Commercial servicing rights | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Fair value of mortgage servicing rights | $ 958,000 | $ 1,497,000 | $ 958,000 | $ 1,497,000 | $ 1,300,000 |
Fees collected for servicing of mortgage loans | 102,000 | $ 70,000 | 396,000 | $ 242,000 | |
Loans guaranteed and sold with servicing retained | 52,800,000 | $ 52,800,000 | $ 66,200,000 | ||
Commercial servicing rights | Minimum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average constant prepayment rate (as a percent) | 13.45% | 14.95% | |||
Servicing assets, discount rate (as a percent) | 8.02% | 7.70% | |||
Commercial servicing rights | Maximum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average constant prepayment rate (as a percent) | 16.85% | 19.25% | |||
Servicing assets, discount rate (as a percent) | 9.42% | 12.88% | |||
Commercial servicing rights | Measurement Input, Cap Rate | Minimum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average capitalization rate (percent) | 0.0310 | ||||
Commercial servicing rights | Measurement Input, Cap Rate | Maximum | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Average capitalization rate (percent) | 0.0445 | ||||
Mortgage Servicing Rights 15-year Tranche | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Valuation allowance | $ 435,000 | $ 422,000 | |||
Amortization period (in years) | 15 years | ||||
Mortgage Servicing Rights 30-year Tranche | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Valuation allowance | 1,400,000 | ||||
Amortization period (in years) | 30 years | ||||
Less Than 20 Years | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Fair value of mortgage servicing rights | 211,000 | $ 211,000 | 203,000 | ||
Period of tranche (in years) | 20 years | ||||
Valuation allowance | $ 0 | $ 0 | |||
Amortization period (in years) | 20 years | 20 years | |||
More Than 20 Years | |||||
Valuation servicing rights in tranches [Line Items] | |||||
Fair value of mortgage servicing rights | $ 747,000 | $ 747,000 | $ 1,085,000 | ||
Period of tranche (in years) | 20 years | ||||
Valuation allowance | $ 0 | $ 0 | |||
Amortization period (in years) | 20 years | 20 years |
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, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 5,189 | $ 5,621 | |
Originations | 1,055 | 2,571 | |
Amortization | (1,029) | (1,693) | |
Valuation adjustment | 586 | (1,676) | |
Balance at end of period | 5,801 | $ 4,823 | |
Fair value of mortgage servicing rights | $ 5,800 | $ 5,200 | |
Servicing rights, net to servicing portfolio (as a percent) | 0.82% | 0.68% | |
Commercial servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 863 | $ 1,115 | |
Originations | 0 | 62 | |
Amortization | (313) | (248) | |
Balance at end of period | 550 | 929 | |
Fair value of mortgage servicing rights | $ 958 | $ 1,497 | $ 1,300 |
Servicing rights, net to servicing portfolio (as a percent) | 1.04% | 1.31% |
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 ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Valuation Allowance | $ 1,700,000 | |
15 Years | ||
Finite-Lived Intangible Assets [Line Items] | ||
Book Value | 1,622,000 | $ 1,522,000 |
Fair Value | 1,187,000 | 1,100,000 |
Valuation Allowance | 435,000 | 422,000 |
30 Years | ||
Finite-Lived Intangible Assets [Line Items] | ||
Book Value | 6,340,000 | 5,445,000 |
Fair Value | 4,614,000 | 4,089,000 |
Valuation Allowance | 1,726,000 | 1,356,000 |
Less Than 20 Years | ||
Finite-Lived Intangible Assets [Line Items] | ||
Book Value | 51,000 | 87,000 |
Fair Value | 211,000 | 203,000 |
Valuation Allowance | 0 | 0 |
More Than 20 Years | ||
Finite-Lived Intangible Assets [Line Items] | ||
Book Value | 499,000 | 776,000 |
Fair Value | 747,000 | 1,085,000 |
Valuation Allowance | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Cash collateral on derivative financial instruments narrative) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash pledged as collateral | $ 2,700,000 | $ 3,800,000 |
Counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($) | Mar. 31, 2021swap | |
Derivative [Line Items] | ||
Change in net unrealized losses and reclassification from AOCI to interest expense on cash flow hedges | $ 1,400 | |
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense | 733 | |
Unaffiliated Bank | ||
Derivative [Line Items] | ||
Derivative, number of swaps | swap | 2 | |
Interest Rate Swaps | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Derivative, notional amount | 40,000 | |
Interest Rate Swaps | Cash Flow Hedges | Heartland Financial Statutory Trust VI and VII | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 40,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges balance sheet category and fair values) (Details) - Other liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Interest Rate Swap due March 17, 2021 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 25,000 |
Fair Value | $ (127) |
Receive Rate (as a percent) | 0.229% |
Weighted Average Pay Rate (as a percent) | 2.255% |
Interest Rate Swap due May 10, 2021 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 21,667 |
Fair Value | $ (91) |
Receive Rate (as a percent) | 2.649% |
Weighted Average Pay Rate (as a percent) | 3.674% |
Interest Rate Swap Due July 24, 2028 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 22,750 |
Fair Value | $ (2,220) |
Receive Rate (as a percent) | 2.643% |
Weighted Average Pay Rate (as a percent) | 5.425% |
Interest Rate Swap due June 15, 2024 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 20,000 |
Fair Value | $ (1,482) |
Receive Rate (as a percent) | 0.217% |
Weighted Average Pay Rate (as a percent) | 2.39% |
Interest Rate Swap due March 1, 2024 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 20,000 |
Fair Value | $ (1,385) |
Receive Rate (as a percent) | 0.225% |
Weighted Average Pay Rate (as a percent) | 2.352% |
Interest Rate Swap Due June 15, 2021 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 6,000 |
Fair Value | $ (50) |
Receive Rate (as a percent) | 0.217% |
Weighted Average Pay Rate (as a percent) | 1.866% |
Interest Rate Swap Due June 30, 2021 | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 3,000 |
Fair Value | $ (25) |
Receive Rate (as a percent) | 0.241% |
Weighted Average Pay Rate (as a percent) | 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | $ 2,220 | $ 1,199 | $ 4,853 | $ (2,164) |
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | 543 | 601 | 1,601 | 1,214 |
Interest Rate Swaps | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Recognized in OCI, Amount of Gain (Loss) | 3,792 | (604) | 5,380 | (3,359) |
Interest Rate Swaps | Interest Expense | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Effective Portion, Reclassified from AOCI into Income, Amount of Gain (Loss) | $ 358 | $ 595 | $ 1,403 | $ 1,195 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash pledged as collateral | $ 2.7 | $ 3.8 |
Fair Value Hedging | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $ 3.8 | $ 4.2 |
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, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional Amount | $ 16,829 | $ 20,841 |
Fair Value | $ (1,550) | $ (2,480) |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value hedges | Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on fair value hedges | $ 35 | $ 26 | $ 930 | $ (1,647) |
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, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional Amount | $ 8,857 | $ 9,198 |
Fair Value | $ 431 | $ 680 |
DERIVATIVE FINANCIAL INSTRUM_11
DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives gain (losses) recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Gain (loss) recognized in other noninterest income on embedded derivatives | Other noninterest income | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in other noninterest income on embedded derivatives | $ (66) | $ (69) | $ (249) | $ 293 |
DERIVATIVE FINANCIAL INSTRUM_12
DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Cash pledged as collateral | $ 2,700,000 | $ 2,700,000 | $ 3,800,000 | ||
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 | 28,600,000 | 28,600,000 | 46,500,000 | ||
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, 2021 | Dec. 31, 2020 |
Other assets | ||
Derivative [Line Items] | ||
Notional Amount | $ 428,782 | $ 440,719 |
Fair Value | 25,801 | 43,422 |
Other liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 428,782 | 440,719 |
Fair Value | $ (25,801) | $ (43,422) |
Weighted Average Receive Rate | Other assets | ||
Derivative [Line Items] | ||
Weighted Average Receive and Pay Rate (as a percent) | 4.49% | 4.46% |
Weighted Average Receive Rate | Other liabilities | ||
Derivative [Line Items] | ||
Weighted Average Receive and Pay Rate (as a percent) | 2.41% | 2.46% |
Weighted Average Pay Rate | Other assets | ||
Derivative [Line Items] | ||
Weighted Average Receive and Pay Rate (as a percent) | 2.41% | 2.46% |
Weighted Average Pay Rate | Other liabilities | ||
Derivative [Line Items] | ||
Weighted Average Receive and Pay Rate (as a percent) | 4.49% | 4.46% |
DERIVATIVE FINANCIAL INSTRUM_14
DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives narrative) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Cash pledged as collateral | $ 2,700,000 | $ 3,800,000 |
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, 2021 | Dec. 31, 2020 |
Other assets | Interest rate lock commitments (mortgage) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | $ 37,209 | $ 42,078 |
Fair Value | 1,204 | 1,827 |
Other assets | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Notional Amount | 47,500 | 0 |
Fair Value | 278 | 0 |
Other liabilities | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 19,500 | 86,500 |
Fair Value | (59) | (697) |
Other liabilities | Undesignated interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,857 | 9,198 |
Fair Value | $ (431) | $ (680) |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest rate lock commitments (mortgage) | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | $ (189) | $ 249 | $ (1,924) | $ 3,243 |
Forward commitments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | 413 | (44) | 916 | (228) |
Undesignated interest rate swaps | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | $ 66 | $ 69 | $ 249 | $ (293) |
FAIR VALUE (Fair value measurem
FAIR VALUE (Fair value measurement recurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Equity securities with a readily determinable fair value | $ 20,790 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 1,013 | $ 2,026 |
Derivative instruments | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 7,448,923 | 6,125,949 |
Derivative instruments | 26,232 | 44,102 |
Liabilities | ||
Derivative liabilities | 27,782 | 51,962 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Derivative instruments | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
U.S. treasuries | ||
Assets | ||
Securities available for sale | 1,013 | 2,026 |
U.S. agencies | ||
Assets | ||
Securities available for sale | 35,033 | 166,779 |
Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 1,823,465 | 1,635,227 |
Commercial mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 127,861 | 174,153 |
Commercial mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 561,667 | 252,767 |
Asset-backed securities | ||
Assets | ||
Securities available for sale | 877,646 | 1,069,266 |
Corporate bonds | ||
Assets | ||
Securities available for sale | 3,294 | 3,742 |
Recurring Basis | ||
Assets | ||
Equity securities with a readily determinable fair value | 20,790 | 19,629 |
Total assets at fair value | 7,477,650 | 6,173,904 |
Liabilities | ||
Total liabilities at fair value | 27,841 | 52,659 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Equity securities with a readily determinable fair value | 0 | 0 |
Total assets at fair value | 1,013 | 2,026 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Equity securities with a readily determinable fair value | 20,790 | 19,629 |
Total assets at fair value | 7,475,433 | 6,170,051 |
Liabilities | ||
Total liabilities at fair value | 27,841 | 52,659 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Equity securities with a readily determinable fair value | 0 | 0 |
Total assets at fair value | 1,204 | 1,827 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Derivative financial instruments | ||
Assets | ||
Derivative instruments | 26,232 | 44,102 |
Liabilities | ||
Derivative liabilities | 27,782 | 51,962 |
Recurring Basis | Derivative financial instruments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring Basis | Derivative financial instruments | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative instruments | 26,232 | 44,102 |
Liabilities | ||
Derivative liabilities | 27,782 | 51,962 |
Recurring Basis | Derivative financial instruments | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring Basis | Interest rate lock commitments | ||
Assets | ||
Derivative instruments | 1,204 | 1,827 |
Recurring Basis | Interest rate lock commitments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Recurring Basis | Interest rate lock commitments | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Recurring Basis | Interest rate lock commitments | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative instruments | 1,204 | 1,827 |
Recurring Basis | Forward commitments | ||
Assets | ||
Derivative instruments | 278 | |
Liabilities | ||
Derivative liabilities | 59 | 697 |
Recurring Basis | Forward commitments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Derivative instruments | 0 | |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring Basis | Forward commitments | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative instruments | 278 | |
Liabilities | ||
Derivative liabilities | 59 | 697 |
Recurring Basis | Forward commitments | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative instruments | 0 | |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring Basis | U.S. treasuries | ||
Assets | ||
Securities available for sale | 1,013 | 2,026 |
Recurring Basis | U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 1,013 | 2,026 |
Recurring Basis | U.S. treasuries | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. treasuries | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. agencies | ||
Assets | ||
Securities available for sale | 35,033 | 166,779 |
Recurring Basis | U.S. agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. agencies | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 35,033 | 166,779 |
Recurring Basis | U.S. agencies | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 1,823,465 | 1,635,227 |
Recurring Basis | Obligations of states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Obligations of states and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 1,823,465 | 1,635,227 |
Recurring Basis | Obligations of states and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 2,371,264 | 1,355,270 |
Recurring Basis | Mortgage-backed securities - agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 2,371,264 | 1,355,270 |
Recurring Basis | Mortgage-backed securities - agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 1,627,903 | 1,449,116 |
Recurring Basis | Mortgage-backed securities - non-agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - non-agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 1,627,903 | 1,449,116 |
Recurring Basis | Mortgage-backed securities - non-agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 127,861 | 174,153 |
Recurring Basis | Commercial mortgage-backed securities - agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 127,861 | 174,153 |
Recurring Basis | Commercial mortgage-backed securities - agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 561,667 | 252,767 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 561,667 | 252,767 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Asset-backed securities | ||
Assets | ||
Securities available for sale | 877,646 | 1,069,266 |
Recurring Basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 877,646 | 1,069,266 |
Recurring Basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Corporate bonds | ||
Assets | ||
Securities available for sale | 3,294 | 3,742 |
Recurring Basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 3,294 | 3,742 |
Recurring Basis | Corporate bonds | Significant Unobservable Inputs (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, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 4,744 | $ 6,624 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 37,078 | 57,949 |
Significant Unobservable Inputs (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 | 38,179 | 34,488 |
Loans held for sale | 37,078 | 57,949 |
Other real estate owned | 4,744 | 6,624 |
Fair Value, Measurements, Nonrecurring | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights | 5,801 | 5,189 |
Fair Value, Measurements, Nonrecurring | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 2,699 | 6,499 |
Fair Value, Measurements, Nonrecurring | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 1,885 | 12,082 |
Loans held for sale | (1,335) | (982) |
Other real estate owned | (119) | 1,044 |
Fair Value, Measurements, Nonrecurring | Year-to- Date (Gains) Losses | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights | (586) | 1,778 |
Fair Value, Measurements, Nonrecurring | Year-to- Date (Gains) Losses | 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 | (86) | 3,288 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (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 | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Loans held for sale | 37,078 | 57,949 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (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 | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 38,179 | 34,488 |
Loans held for sale | 0 | 0 |
Other real estate owned | 4,744 | 6,624 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights | 5,801 | 5,189 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 2,699 | 6,499 |
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 | 9,145 | 12,451 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Year-to- Date (Gains) Losses | ||
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 9,145 | 12,451 |
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 | 10,270 | 11,256 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 248 | 451 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 10,270 | 11,256 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 3,552 | 5,874 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 11,631 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 3,552 | 5,874 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 15,212 | 4,907 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 1,637 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | $ 15,212 | $ 4,907 |
FAIR VALUE (Quantitative Inform
FAIR VALUE (Quantitative Information about Level 3 fair value measurements) (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instruments | $ 0 | $ 0 |
Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instruments | 1,204 | 1,827 |
Discounted cash flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 5,801 | 5,189 |
Modified appraised value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 4,744 | 6,624 |
Modified appraised value | Agricultural and agricultural real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent impaired loans | 9,145 | 12,451 |
Modified appraised value | Premises, furniture and equipment held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Premises, furniture and equipment held for sale | 2,699 | 6,499 |
Interest rate lock commitments | Discounted cash flows | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instruments | $ 1,204 | $ 1,827 |
Closing ratio | Discounted cash flows | Weighted Average | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.88 | 0.86 |
Closing ratio | 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 | 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 | Modified appraised value | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Appraisal discount | Modified appraised value | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 10.00% | 10.00% |
Appraisal discount | Modified appraised value | Premises, furniture and equipment held for sale | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Appraisal discount | Modified appraised value | Premises, furniture and equipment held for sale | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 10.00% | 10.00% |
Commercial and industrial | Modified appraised value | Commercial and industrial | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent impaired loans | $ 10,270 | $ 11,256 |
Commercial and industrial | Modified appraised value | Owner occupied commercial real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent impaired loans | 3,552 | 5,874 |
Commercial and industrial | Modified appraised value | Non-owner occupied commercial real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent impaired loans | $ 15,212 | $ 4,907 |
Commercial and industrial | Appraisal discount | Modified appraised value | Commercial and industrial | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Commercial and industrial | Appraisal discount | Modified appraised value | Commercial and industrial | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 15.00% | 8.00% |
Commercial and industrial | Appraisal discount | Modified appraised value | Owner occupied commercial real estate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Commercial and industrial | Appraisal discount | Modified appraised value | Owner occupied commercial real estate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 11.00% | 12.00% |
Commercial and industrial | Appraisal discount | Modified appraised value | Non-owner occupied commercial real estate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Commercial and industrial | Appraisal discount | Modified appraised value | Non-owner occupied commercial real estate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 11.00% | 10.00% |
Agricultural and agricultural real estate | Appraisal discount | Modified appraised value | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 0.00% | 0.00% |
Agricultural and agricultural real estate | Appraisal discount | Modified appraised value | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing assets, discount rate (as a percent) | 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, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,827 | $ 681 |
Total net gains included in earnings | (1,924) | 2,803 |
Issuances | 12,548 | 17,221 |
Settlements | (11,247) | (18,878) |
Balance at period end | $ 1,204 | $ 1,827 |
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, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
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 | $ 15,399 | $ 21,411 | |
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 | $ 1,200 | $ 1,800 |
FAIR VALUE (Estimated fair valu
FAIR VALUE (Estimated fair value financial instruments incl. carrying amounts) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities: | ||
Held to maturity | $ 95,010 | $ 100,041 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 327,405 | 337,903 |
Time deposits in other financial institutions | 3,138 | 3,129 |
Securities: | ||
Carried at fair value | 1,013 | 2,026 |
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 instruments | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | ||
Securities: | ||
Derivative instruments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward commitments | ||
Securities: | ||
Derivative instruments | 0 | |
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 | 7,448,923 | 6,125,949 |
Held to maturity | 95,010 | 100,041 |
Other investments | 83,332 | 75,523 |
Loans held for sale | 37,078 | 57,949 |
Loans, net | 9,720,384 | 9,735,181 |
Cash surrender value on life insurance | 190,576 | 187,664 |
Derivative instruments | 26,232 | 44,102 |
Financial liabilities: | ||
Short term borrowings | 265,620 | 167,872 |
Other borrowings | 372,902 | 458,806 |
Derivative liabilities | 27,782 | 51,962 |
Level 2 | Interest rate lock commitments | ||
Securities: | ||
Derivative instruments | 0 | 0 |
Level 2 | Demand deposits | ||
Financial liabilities: | ||
Deposits | 6,537,722 | 5,688,810 |
Level 2 | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,416,204 | 8,019,704 |
Level 2 | Time deposits | ||
Financial liabilities: | ||
Deposits | 1,070,957 | 1,273,468 |
Level 2 | Forward commitments | ||
Securities: | ||
Derivative instruments | 278 | |
Financial liabilities: | ||
Derivative liabilities | 59 | 697 |
Significant Unobservable Inputs (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 | 38,179 | 34,488 |
Cash surrender value on life insurance | 0 | 0 |
Derivative instruments | 0 | 0 |
Financial liabilities: | ||
Short term borrowings | 0 | 0 |
Other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | ||
Securities: | ||
Derivative instruments | 1,204 | 1,827 |
Significant Unobservable Inputs (Level 3) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Forward commitments | ||
Securities: | ||
Derivative instruments | 0 | |
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate construction | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Level 2 | Commercial and industrial | ||
Securities: | ||
Loans, net | 2,488,044 | 2,379,785 |
Commercial and industrial | Level 2 | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 409,247 | 957,785 |
Commercial and industrial | Level 2 | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,115,459 | 1,739,523 |
Commercial and industrial | Level 2 | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 1,993,612 | 1,887,306 |
Commercial and industrial | Level 2 | Real estate construction | ||
Securities: | ||
Loans, net | 803,298 | 849,224 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Commercial and industrial | ||
Securities: | ||
Loans, net | 10,270 | 11,256 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 3,552 | 5,874 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 15,212 | 4,907 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Real estate construction | ||
Securities: | ||
Loans, net | 0 | 0 |
Agricultural and agricultural real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Agricultural and agricultural real estate | Level 2 | ||
Securities: | ||
Loans, net | 671,556 | 685,278 |
Agricultural and agricultural real estate | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 9,145 | 12,451 |
Residential real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Residential real estate | Level 2 | ||
Securities: | ||
Loans, net | 831,021 | 828,366 |
Residential real estate | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 0 | 0 |
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Consumer | Level 2 | ||
Securities: | ||
Loans, net | 408,147 | 407,914 |
Consumer | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 327,405 | 337,903 |
Time deposits in other financial institutions | 3,138 | 3,129 |
Securities: | ||
Carried at fair value | 7,449,936 | 6,127,975 |
Held to maturity | 85,354 | 88,839 |
Other investments | 83,332 | 75,253 |
Loans held for sale | 37,078 | 57,949 |
Loans, net | 9,737,374 | 9,891,445 |
Cash surrender value on life insurance | 190,576 | 187,664 |
Derivative instruments | 26,232 | 44,102 |
Financial liabilities: | ||
Short term borrowings | 265,620 | 167,872 |
Other borrowings | 371,765 | 457,042 |
Derivative liabilities | 27,782 | 51,962 |
Carrying Amount | Interest rate lock commitments | ||
Securities: | ||
Derivative instruments | 1,204 | 1,827 |
Carrying Amount | Demand deposits | ||
Financial liabilities: | ||
Deposits | 6,537,722 | 5,688,810 |
Carrying Amount | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,416,204 | 8,019,704 |
Carrying Amount | Time deposits | ||
Financial liabilities: | ||
Deposits | 1,068,317 | 1,271,391 |
Carrying Amount | Forward commitments | ||
Securities: | ||
Derivative instruments | 278 | |
Financial liabilities: | ||
Derivative liabilities | 59 | 697 |
Carrying Amount | Commercial and industrial | Commercial and industrial | ||
Securities: | ||
Loans, net | 2,510,461 | 2,495,981 |
Carrying Amount | Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 409,247 | 957,785 |
Carrying Amount | Commercial and industrial | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,116,099 | 1,756,405 |
Carrying Amount | Commercial and industrial | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 1,998,372 | 1,900,608 |
Carrying Amount | Commercial and industrial | Real estate construction | ||
Securities: | ||
Loans, net | 790,303 | 843,140 |
Carrying Amount | Agricultural and agricultural real estate | ||
Securities: | ||
Loans, net | 678,344 | 707,397 |
Carrying Amount | Residential real estate | ||
Securities: | ||
Loans, net | 831,118 | 828,507 |
Carrying Amount | Consumer | ||
Securities: | ||
Loans, net | 403,430 | 401,622 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 327,405 | 337,903 |
Time deposits in other financial institutions | 3,138 | 3,129 |
Securities: | ||
Carried at fair value | 7,449,936 | 6,127,975 |
Held to maturity | 95,010 | 100,041 |
Other investments | 83,332 | 75,523 |
Loans held for sale | 37,078 | 57,949 |
Loans, net | 9,758,563 | 9,769,669 |
Cash surrender value on life insurance | 190,576 | 187,664 |
Derivative instruments | 26,232 | 44,102 |
Financial liabilities: | ||
Short term borrowings | 265,620 | 167,872 |
Other borrowings | 372,902 | 458,806 |
Derivative liabilities | 27,782 | 51,962 |
Estimated Fair Value | Interest rate lock commitments | ||
Securities: | ||
Derivative instruments | 1,204 | 1,827 |
Estimated Fair Value | Demand deposits | ||
Financial liabilities: | ||
Deposits | 6,537,722 | 5,688,810 |
Estimated Fair Value | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,416,204 | 8,019,704 |
Estimated Fair Value | Time deposits | ||
Financial liabilities: | ||
Deposits | 1,070,957 | 1,273,468 |
Estimated Fair Value | Forward commitments | ||
Securities: | ||
Derivative instruments | 278 | |
Financial liabilities: | ||
Derivative liabilities | 59 | 697 |
Estimated Fair Value | Commercial and industrial | Commercial and industrial | ||
Securities: | ||
Loans, net | 2,498,314 | 2,391,041 |
Estimated Fair Value | Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 409,247 | 957,785 |
Estimated Fair Value | Commercial and industrial | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,119,011 | 1,745,397 |
Estimated Fair Value | Commercial and industrial | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,008,824 | 1,892,213 |
Estimated Fair Value | Commercial and industrial | Real estate construction | ||
Securities: | ||
Loans, net | 803,298 | 849,224 |
Estimated Fair Value | Agricultural and agricultural real estate | ||
Securities: | ||
Loans, net | 680,701 | 697,729 |
Estimated Fair Value | Residential real estate | ||
Securities: | ||
Loans, net | 831,021 | 828,366 |
Estimated Fair Value | Consumer | ||
Securities: | ||
Loans, net | $ 408,147 | $ 407,914 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | $ 22,638 | $ 17,755 | $ 64,975 | $ 52,075 |
Loan servicing income | 784 | 638 | 2,495 | 1,980 |
Securities gains, net | 1,535 | 1,300 | 4,347 | 4,964 |
Unrealized gain on equity securities, net | 112 | 155 | 85 | 604 |
Net gains on sale of loans held for sale | 5,281 | 8,894 | 16,454 | 21,411 |
Valuation adjustment on servicing rights | 195 | (120) | 586 | (1,676) |
Income on bank owned life insurance | 940 | 868 | 2,706 | 2,533 |
Other noninterest income | 1,239 | 1,726 | 4,557 | 5,779 |
Total noninterest income out-of-scope of Topic 606 | 10,086 | 13,461 | 31,230 | 35,595 |
TOTAL NONINTEREST INCOME | 32,724 | 31,216 | 96,205 | 87,670 |
Total service charges and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 15,551 | 11,749 | 44,354 | 34,742 |
Service charges and fees on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 4,146 | 3,710 | 12,096 | 10,623 |
Overdraft fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 3,044 | 2,184 | 8,185 | 6,627 |
Customer service and other service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 52 | 39 | 152 | 133 |
Credit card fee income | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 5,673 | 3,894 | 15,835 | 11,861 |
Debit card income | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 2,636 | 1,922 | 8,086 | 5,498 |
Trust fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | 6,221 | 5,357 | 18,037 | 15,356 |
Brokerage and insurance commissions | ||||
Disaggregation of Revenue [Line Items] | ||||
Service charges and fees on deposit accounts | $ 866 | $ 649 | $ 2,584 | $ 1,977 |
STOCK COMPENSATION (Narrative)
STOCK COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | May 31, 2020 | |
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) | 1,194,377 | ||
Excess tax benefit related to share-based payment awards | $ 304 | $ 93 | |
Time-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting periods (in years) | 3 years | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting periods (in years) | 3 years | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation costs | $ 6,500 | $ 5,400 | |
Share-based unrecognized compensation costs | $ 8,500 |
STOCK COMPENSATION (Summary of
STOCK COMPENSATION (Summary of RSUs Activity) (Details) - RSUs - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Shares | ||
Outstanding at beginning of period (in shares) | 348,275 | 254,383 |
Granted (in shares) | 214,943 | 220,688 |
Vested (in shares) | (146,864) | (119,325) |
Forfeited (in shares) | (24,088) | (15,674) |
Outstanding at end of period (in shares) | 392,266 | 340,072 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 38.22 | $ 46.76 |
Granted (in dollars per share) | 51.49 | 31.95 |
Vested (in dollars per share) | 40.87 | 44.49 |
Forfeited (in dollars per share) | 42.98 | 47.13 |
Outstanding at end of period (in dollars per share) | $ 44.14 | $ 38.37 |