XML 149 R12.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Investments | 12 Months Ended
--- | ---
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments The amortized cost and fair value of securities available for sale are as follows:
|  | December 31, 2019
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 215,888 |  |  | $ | 1,895 |  |  | $ | (658 | ) |  | $ | 217,125 |
Utah Housing Corporation bonds |  | 19,474 |  |  | 145 |  |  | (83 | ) |  | 19,536 |
U.S. government-sponsored enterprises |  | 250,394 |  |  | 635 |  |  | (21 | ) |  | 251,008 |
Total |  | $ | 485,756 |  |  | $ | 2,675 |  |  | $ | (762 | ) |  | $ | 487,669 |
|  | December 31, 2018
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 159,937 |  |  | $ | 155 |  |  | $ | (5,517 | ) |  | $ | 154,575 |
Utah Housing Corporation bonds |  | 22,388 |  |  | 23 |  |  | (741 | ) |  | 21,670 |
Total |  | $ | 182,325 |  |  | $ | 178 |  |  | $ | (6,258 | ) |  | $ | 176,245 |
The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position:
|  | Less than 12 months |  | 12 months or more |  | Total
|  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
As of December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (218 | ) |  | $ | 25,624 |  |  | $ | (440 | ) |  | $ | 42,448 |  |  | $ | (658 | ) |  | $ | 68,072 |
Utah Housing Corporation bonds |  | — |  |  | — |  |  | (83 | ) |  | 11,097 |  |  | (83 | ) |  | 11,097 |
U.S. government-sponsored enterprises |  | (21 | ) |  | 14,977 |  |  | — |  |  | — |  |  | (21 | ) |  | 14,977 |
Total |  | $ | (239 | ) |  | $ | 40,601 |  |  | $ | (523 | ) |  | $ | 53,545 |  |  | $ | (762 | ) |  | $ | 94,146 |
As of December 31, 2018: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (228 | ) |  | $ | 16,948 |  |  | $ | (5,289 | ) |  | $ | 125,537 |  |  | $ | (5,517 | ) |  | $ | 142,485 |
Utah Housing Corporation bonds |  | — |  |  | — |  |  | (741 | ) |  | 16,647 |  |  | (741 | ) |  | 16,647 |
Total |  | $ | (228 | ) |  | $ | 16,948 |  |  | $ | (6,030 | ) |  | $ | 142,184 |  |  | $ | (6,258 | ) |  | $ | 159,132 |
Our investment portfolio is comprised primarily of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, with amortized costs of $54 million, $106 million, and $56 million, respectively, at December 31, 2019. We own these securities to meet our requirements under the Community Reinvestment Act. In the second quarter of 2018, we elected to sell nine securities totaling $41 million to better align the portfolio with the Community Reinvestment Act requirements, and we recognized a $2 million loss upon the sale of those securities. As of December 31, 2019, 33 of the 107 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 18 of the 33 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2018, 74 of the 86 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 34 of the 74 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remainder carried a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We also invest in Utah Housing Corporation bonds for the purpose of complying with the Community Reinvestment Act. These bonds are Aa3 rated by Moody’s Investors Service. The amortized cost of the investment on the consolidated balance sheet at December 31, 2019 and December 31, 2018 was $19 million and $22 million, respectively. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. Beginning in the second quarter of 2019, we began investing in U.S. government-sponsored enterprise securities issued by the Federal Home Loan Bank (“FHLB”), Freddie Mac and the Federal Farm Credit Bank (“FFCB”). These bonds are rated AA+ by Moody’s Investors Services. As of December 31, 2019, 1 of the 14 securities had unrealized losses. As of December 31, 2019, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments.
Year of Maturity |  | Amortized Cost |  | Estimated Fair Value
2020 |  | $ | 77,240 |  |  | $ | 77,385 |
2021 |  | 138,157 |  |  | 138,640 |
2022 |  | 34,997 |  |  | 34,983 |
2038 |  | 176 |  |  | 191 |
2039 |  | 2,597 |  |  | 2,778 |
2042 |  | 7,196 |  |  | 7,050 |
2043 |  | 11,661 |  |  | 11,813 |
2044 |  | 17,300 |  |  | 17,487 |
2045 |  | 18,280 |  |  | 18,332 |
2046 |  | 28,892 |  |  | 28,822 |
2047 |  | 45,411 |  |  | 45,353 |
2048 |  | 12,154 |  |  | 12,478 |
2049 |  | 91,695 |  |  | 92,357 |
Total |  | $ | 485,756 |  |  | $ | 487,669 |
The mortgage-backed securities have been pledged to the FRB as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $252 million and $147 million par value of securities pledged to this borrowing facility at December 31, 2019 and 2018, respectively, as discussed further in Note 9, “Borrowings.” Other Investments Investments in Non-Marketable Securities We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. In the third quarter of 2019, we funded an additional investment, as part of a larger equity raise, in an issuer whose equity securities we purchased in the past. We used the valuation associated with the more recent securities investment to adjust the valuation of our previous investments and, as a result, recorded a gain of $8 million on our earlier equity securities investments. This gain was recorded in “other income” in the consolidated statements of income. As of December 31, 2019 and December 31, 2018, our total investment in the securities of this issuer was $26 million and $8 million, respectively. Low Income Housing Tax Credit Investments We invest in affordable housing projects that qualify for the LIHTC, which is designed to promote private development of low income housing. We recognized $6 million, $4 million and $1 million of tax credits and other tax benefits associated with investments in affordable housing projects within income tax expense for the years ended December 31, 2019, 2018 and 2017, respectively. The amount of amortization of such investments reported in income tax expense was $4 million, $4 million and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Total carrying value of the LIHTC investments was $58 million at December 31, 2019 and $48 million at December 31, 2018. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $29 million at December 31, 2019 and $37 million at December 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration