Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]


7.			Investment Securities

The Company’s amortized cost and estimated fair value of investment securities as of December 31, 2021 and 2020, are presented below:


(In thousands)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Fair Value(a)
2021
Current:

Debt securities:
U.S. treasury notes	$	308,058	$	250	$	1,113	$	307,195
Corporate debt securities	355,102		30		3,289		351,843
Municipal bonds	31,273		44		149		31,168
Asset-backed securities	120,774		24		587		120,211
Mortgage-backed securities	139,590		11		1,341		138,260

Total(d)	$	954,797	$	359	$	6,479	$	948,677

Non-current:

Debt securities:
Municipal bonds	$	3,107	$	1	$	—	$	3,108
Asset-backed securities	167		1		—		168
Mortgage-backed securities	121		2		—		123
Mutual fund	27,999		—		748		27,251
Pooled investment fund	9,000		—		—		9,000
Total (b)	$	40,394	$	4	$	748	$	39,650
Total investment securities(c)	$	995,191	$	363	$	7,227	$	988,327
2020
Non-current:

Debt securities:
Municipal bonds	$	195	$	2	$	—	$	197
Asset-backed securities	211		—		1		210
Mortgage-backed securities	133		5		—		138
Mutual fund	27,680		48		—		27,728
Pooled investment fund	9,000		—		—		9,000
Total (b)	$	37,219	$	55	$	1	$	37,273
Total investment securities(b)(c)	$	37,219	$	55	$	1	$	37,273

(a) The Company’s methods for measuring the fair value of its investment securities are discussed in Note 18, Fair Value.

(b) These investments are not deemed available for current operations and have been classified as non-current on the consolidated balance sheets.

(c) Excludes $11.3 million and $9.6 million in equity securities as of December 31, 2021 and 2020, respectively, included in prepaid expenses and other current assets and other assets on the consolidated balance sheets. See Note 17, Employee Benefit Plans, for additional information.

(d) These investments are custodial assets managed and invested by WEX Bank through an investment manager. They are classified as current on the consolidated balance sheets, even though the stated maturity date may be one year or more beyond the current balance sheet date, as the Company views these securities as available for use in current operations, if needed.

The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category and length of time such securities have been in a continuous unrealized loss position as of December 31, 2021. There are no expected credit losses that have been recorded against our investment securities as of December 31, 2021. Unrealized losses on the Company’s debt securities as of December 31, 2020 were insignificant.



	Less than one year
(In thousands)	Fair Value		Gross Unrealized Losses


Investment-grade rated debt securities:
U.S. treasury notes	$	268,839	$	1,113
Corporate debt securities	$	336,777	$	3,289
Municipal bonds	$	24,049	$	149
Asset-backed securities	$	101,983	$	587
Mortgage-backed securities	$	132,737	$	1,341

The above table includes 188 securities at December 31, 2021, where the current fair value is less than the related amortized cost. Unrealized losses on the Company’s debt securities included in the above table are not considered to be credit-related based upon an analysis that considered the extent to which the fair value is less than the amortized basis of a security, adverse conditions specifically related to the security, changes to credit rating of the instrument subsequent to Company purchase, and the strength of the underlying collateral, if any. Additionally, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity.

The following table summarizes the contractual maturity dates of the Company’s debt securities.


	December 31,
	2021				2020
(In thousands)	Net Carrying Amount		Fair Value		Net Carrying Amount		Fair Value


Due after 1 year through year 5	$	369,485	$	366,605	$	—	$	—
Due after 5 years through year 10	369,131		367,536		236		236
Due after 10 years	219,576		217,935		303		309
Total	$	958,192	$	952,076	$	539	$	545

During the years ended December 31, 2021, 2020 and 2019, unrealized gains and losses related to equity securities still held at those dates were immaterial.