INVESTMENT SECURITIES

The amortized cost and approximate fair values of investment securities are summarized as follows:



December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-Sale
Obligations of U.S. government agencies	$	774,055	$	1,432	$	(12,249	)	$	763,238
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations	1,197,295		11,905		(25,147		)	1,184,053
Private mortgage-backed securities	407		9		(1		)	415
Total	$	1,971,757	$	13,346	$	(37,397	)	$	1,947,706



December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Held-to Maturity
State, county and municipal securities	$	185,818	$	4,043	$	(2,049	)	$	187,812
Corporate securities	18,019		103		(8		)	18,114
Total	$	203,837	$	4,146	$	(2,057	)	$	205,926

Gross gains of $49 and gross losses of $48 were realized on the disposition of available-for-sale securities in 2013.



December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-Sale
Obligations of U.S. government agencies	$	751,501	$	3,518	$	(163	)	$	754,856
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations	1,214,377		27,000		(1,526		)	1,239,851
Private mortgage-backed securities	539		13		(1		)	551
Total	$	1,966,417	$	30,531	$	(1,690	)	$	1,995,258



December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Held-to Maturity
State, county and municipal securities	$	192,875	$	10,835	$	(176	)	$	203,534
Corporate securities	14,975		64		(13		)	$	15,026
Other securities	373		—		—			373
Total	$	208,223	$	10,899	$	(189	)	$	218,933

Gross gains of $351 and $1,544 were realized on the disposition of available-for-sale securities in 2012 and 2011, respectively. Gross losses of $3 were realized on the disposition of available-for-sale securities in 2012. No gross losses were realized on the disposition of available -for-sale securities in 2011.

As of December 31, 2013, the Company had general obligation securities with amortized costs of $147,443 included in state, county and municipal securities, of which $75,337 were issued by political subdivisions or agencies within the states of Montana, Wyoming and South Dakota.

The following table shows the gross unrealized losses and fair values of investment securities, aggregated by investment category, and the length of time individual investment securities have been in a continuous unrealized loss position, as of December 31, 2013 and 2012.



	Less than 12 Months					12 Months or More					Total
December 31, 2013	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Available-for-Sale
Obligations of U.S. government agencies	$	458,385	$	(10,355	)	$	59,362	$	(1,894	)	$	517,747	$	(12,249	)
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations	634,199		(17,273		)	166,930		(7,874		)	801,129		(25,147		)
Private mortgage-backed securities	—		—			104		(1		)	104		(1		)
Total	$	1,092,584	$	(27,628	)	$	226,396	$	(9,769	)	$	1,318,980	$	(37,397	)



	Less than 12 Months					12 Months or More					Total
December 31, 2013	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Held-to-Maturity
State, county and municipal securities	$	37,550	$	(1,319	)	$	14,296	$	(730	)	$	51,846	$	(2,049	)
Corporate securities	7,294		(8		)	—		—			7,294		(8		)
Total	$	44,844	(1,327		)	14,296		(730		)	59,140		(2,057		)



	Less than 12 Months					12 Months or More					Total
December 31, 2012	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Available-for-Sale
Obligations of U.S. government agencies	$	93,982	$	(163	)	$	—	$	—		$	93,982	$	(163	)
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations	250,198		(1,526		)	—		—			250,198		(1,526		)
Private mortgage-backed securities	—		—			137		(1		)	137		(1		)
Total	$	344,180	$	(1,689	)	$	137	$	(1	)	$	344,317	$	(1,690	)



	Less than 12 Months					12 Months or More					Total
December 31, 2012	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Held-to-Maturity
State, county and municipal securities	$	19,389	$	(168	)	$	557	$	(8	)	$	19,946	$	(176	)
Corporate securities	$	9,312	$	(13	)	$	—	$	—		$	9,312	$	(13	)
Total	$	28,701	(181		)	557		(8		)	29,258		(189		)

The investment portfolio is evaluated quarterly for other-than-temporary declines in the market value of each individual investment security. Consideration is given to the length of time and the extent to which the fair value has been less than cost; the financial condition and near term prospects of the issuer; and, the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2013, the Company had 229 individual investment securities that were in an unrealized loss position. As of December 31, 2012, the Company had 69 individual investment securities that were in an unrealized loss position. Unrealized losses as of December 31, 2013 and 2012 related primarily to fluctuations in the current interest rates. The fair value of these investment securities is expected to recover as the securities approach their maturity or repricing date or if market yields for such investments decline. As of December 31, 2013, the Company had the intent and ability to hold these investment securities for a period of time sufficient to allow for an anticipated recovery. Furthermore, the Company does not have the intent to sell any of the available-for-sale securities in the above table and it is more likely than not that the Company will not have to sell any such securities before a recovery in cost. No impairment losses were recorded during 2013, 2012 or 2011.

Maturities of investment securities at December 31, 2013 are shown below. Maturities of mortgage-backed securities have been adjusted to reflect shorter maturities based upon estimated prepayments of principal. All other investment securities maturities are shown at contractual maturity dates.



	Available-for-Sale				Held-to-Maturity
December 31, 2013	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	263,280	$	261,054	$	4,190	$	4,244
After one year but within five years	1,223,138		1,211,243		57,860		58,494
After five years but within ten years	401,500		392,496		87,703		89,168
After ten years	83,839		82,913		54,084		54,020
Total	$	1,971,757	$	1,947,706	$	203,837	$	205,926

At December 31, 2013, the Company had investment securities callable within one year with amortized costs and estimated fair values of $307,946 and $303,193, respectively. These investment securities are primarily classified as available-for-sale and included in the after one year but within five years category in the table above.

At December 31, 2013, the Company had callable structured notes with amortized costs and estimated fair values of $79,658 and $78,665, respectively. These callable structured notes, which are classified as available-for-sale and included in the after one year but within five years category in the table above, have fixed interest rates that increase at various intervals as market rates increase.

Maturities of securities do not reflect rate repricing opportunities present in adjustable rate mortgage-backed securities. At December 31, 2013 and 2012, the Company had variable rate mortgage-backed securities with amortized costs of $46,315 and $29,105, respectively, classified as available-for-sale in the table above.

There are no significant concentrations of investments at December 31, 2013, (greater than 10 percent of stockholders’ equity) in any individual security issuer, except for U.S. government or agency-backed securities. As of December 31, 2013 and 2012, all mortgage-backed securities were residential in nature.

Investment securities with amortized cost of $1,288,750 and $1,318,807 at December 31, 2013 and 2012, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. The approximate fair value of securities pledged at December 31, 2013 and 2012 was $1,278,663 and $1,344,220, respectively. All securities sold under repurchase agreements are with customers and mature on the next banking day. The Company retains possession of the underlying securities sold under repurchase agreements.