XML 24 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investment Securities
12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES

The amortized cost and approximate fair values of investment securities are summarized as follows:
December 31, 2019
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
Available-for-Sale
 
 
 
 
U.S. Treasury notes
$
9.0

$

$

$
9.0

State, county and municipal securities
80.1

0.8


80.9

Obligations of U.S. government agencies
367.5

0.1

(0.8
)
366.8

U.S. agency residential mortgage-backed securities &
   collateralized mortgage obligations
2,303.6

19.6

(6.0
)
2,317.2

Private mortgage-backed securities
47.6


(0.4
)
47.2

Corporate Securities
134.5

1.2


135.7

Other investments
3.2



3.2

Total
$
2,945.5

$
21.7

$
(7.2
)
$
2,960.0

December 31, 2019
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
Held-to Maturity
 
 
 
 
State, county and municipal securities
$
57.3

$
2.1

$

$
59.4

Obligations of U.S. government agencies
19.8



19.8

U.S agency residential mortgage-backed securities &
collateralized mortgage obligations
1.2



1.2

Corporate securities
13.9

0.1


14.0

Other investments
0.1



0.1

Total
$
92.3

$
2.2

$

$
94.5


December 31, 2018
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
Available-for-Sale
 
 
 
 
U.S. Treasury notes
$
2.6

$

$

$
2.6

Obligations of U.S. government agencies
569.3

0.1

(10.2
)
559.2

U.S. agency residential mortgage-backed securities &
collateralized mortgage obligations
1,566.4

2.5

(24.1
)
1,544.8

Private mortgage-backed securities
72.0


(1.8
)
70.2

Corporate Securities
92.9


(1.0
)
91.9

Other investments
2.0



2.0

Total
$
2,305.2

$
2.6

$
(37.1
)
$
2,270.7

December 31, 2018
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair
Value
Held-to Maturity
 
 
 
 
State, county and municipal securities
$
150.9

$
1.8

$
(0.9
)
$
151.8

Obligations of U.S. government agencies
19.8


(0.3
)
19.5

U.S. agency residential mortgage-backed securities &
   collateralized mortgage obligations
189.7

0.3

(6.5
)
183.5

Corporate securities
46.3

0.1

(0.6
)
45.8

Other investments
0.1



0.1

Total
$
406.8

$
2.2

$
(8.3
)
$
400.7



At December 31, 2018, we had $406.8 million of investment securities classified as held to maturity. As a result of the adoption of ASU 2017-12 discussed in “Note 27 – Recent Authoritative Accounting Guidance”, the Company transferred investment securities classified as held-to-maturity to investment securities available-for-sale. At the time of transfer, the amortized cost and fair value of these securities totaled $281.1 million and $275.1 million, respectively. In addition, the unrealized loss of $6.0 million was recorded in the consolidated statement of comprehensive income.

There were no material gross gains and no material gross losses realized on the disposition of available-for-sale securities in 2019 and 2018. There were $1.1 million of gross gains realized and $0.4 million of gross losses realized on the disposition of available-for-sale securities in 2017.

As of December 31, 2019, the Company had general obligation securities with amortized costs of $45.9 million included in state, county and municipal securities, of which $28.0 million were issued by political subdivisions or agencies within the states of Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming.

The following tables show 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, 2019 and 2018. There were no held-to-maturity securities in a continuous unrealized loss position as of December 31, 2019.
 
Less than 12 Months
12 Months or More
Total
December 31, 2019
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Available-for-Sale
 
 
 
 
 
 
Obligations of U.S. government agencies
$
185.3

$
(0.8
)
$

$

$
185.3

$
(0.8
)
U.S. agency residential mortgage-backed
   securities & collateralized mortgage
   obligations
740.1

(4.6
)
155.9

(1.4
)
896.0

(6.0
)
Private mortgage-backed securities


46.6

(0.4
)
46.6

(0.4
)
Total
$
925.4

$
(5.4
)
$
202.5

$
(1.8
)
$
1,127.9

$
(7.2
)
 
 
 
 
 
 
 
 
Less than 12 Months
12 Months or More
Total
December 31, 2018
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Available-for-Sale
 
 
 
 
 
 
Obligations of U.S. government agencies
$
363.1

$
(7.9
)
$
154.5

$
(2.3
)
$
517.6

$
(10.2
)
U.S. agency residential mortgage-backed
   securities & collateralized mortgage
   obligations
735.2

(14.5
)
503.7

(9.6
)
1,238.9

(24.1
)
Private mortgage-backed securities


69.4

(1.8
)
69.4

(1.8
)
Corporate securities
24.9

(0.2
)
51.4

(0.8
)
76.3

(1.0
)
Total
$
1,123.2

$
(22.6
)
$
779.0

$
(14.5
)
$
1,902.2

$
(37.1
)
 
Less than 12 Months
12 Months or More
Total
December 31, 2018
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Held-to-Maturity
 
 
 
 
 
 
State, county and municipal securities
$
25.9

$
(0.3
)
$
57.1

$
(0.6
)
$
83.0

$
(0.9
)
U.S. agency residential mortgage-backed
securities & collateralized mortgage
obligations
45.0

(2.2
)
120.2

(4.3
)
165.2

(6.5
)
Corporate securities


39.6

(0.6
)
39.6

(0.6
)
Obligations of U.S. government agencies
19.5

(0.3
)


19.5

(0.3
)
Total
$
90.4

$
(2.8
)
$
216.9

$
(5.5
)
$
307.3

$
(8.3
)


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. The Company had 338 and 760 individual investment securities that were in an unrealized loss position as of December 31, 2019 and 2018, respectively. Unrealized losses as of December 31, 2019 and 2018 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, 2019, 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 securities before a recovery in cost. No impairment losses were recorded during 2019, 2018 or 2017.

Maturities of investment securities at December 31, 2019 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, 2019
Amortized
Cost
Estimated
Fair Value
 
Amortized
Cost
Estimated
Fair Value
Within one year
$
677.3

$
661.4

 
$
38.6

$
38.6

After one year but within five years
1,486.2

1,470.9

 
29.7

30.1

After five years but within ten years
328.0

428.2

 
21.3

23.1

After ten years
454.0

399.5

 
2.7

2.7

Total
$
2,945.5

$
2,960.0

 
$
92.3

$
94.5



At December 31, 2019, the Company had investment securities callable within one year with amortized costs and estimated fair values of $181.2 million and $181.1 million, respectively. These investment securities are primarily classified as available-for-sale and included in the after five years but within ten years category in the table above. At December 31, 2019, the Company had no callable structured notes.

Maturities of securities do not reflect rate repricing opportunities present in adjustable rate mortgage-backed securities. At December 31, 2019 and 2018, the Company had variable rate mortgage-backed securities with amortized costs of $298.1 million and $219.5 million, respectively, classified as available-for-sale in the table above.

There are no significant concentrations of investments at December 31, 2019, (greater than 10 percent of stockholders’ equity) in any individual security issuer, except for U.S. government or agency-backed securities.

Investment securities with amortized cost of $2,132.0 million and $1,943.1 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. The approximate fair value of securities pledged at December 31, 2019 and 2018 was $2,144.9 million and $1,908.4 million, respectively. All securities sold under repurchase agreements are with clients and mature on the next banking day. The Company retains possession of the underlying securities sold under repurchase agreements.