Investment Securities

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]


12.			Investment Securities

The Company’s amortized cost and estimated fair value of investment securities as of June 30, 2024 and December 31, 2023 are presented below. Accrued interest on investment securities of $28.4 million and $24.7 million, respectively, as of June 30, 2024 and December 31, 2023, is excluded from total investment securities and recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.


(in millions)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Fair Value(1)
As of June 30, 2024
Current:

Debt securities(2):
U.S. treasury notes	$	429.9	$	0.1	$	35.0	$	395.1
Corporate and sovereign debt securities	1,227.5		5.5		35.3		1,197.6
Municipal bonds	70.9		0.2		5.8		65.4
Asset-backed securities	668.0		5.9		2.7		671.2
Mortgage-backed securities	1,040.3		2.9		50.0		993.2

Total	$	3,436.6	$	14.7	$	128.8	$	3,322.5

Non-current:

Debt securities(3)	$	28.5	$	0.2	$	1.3	$	27.4


Mutual fund	29.4		—		3.9		25.4
Pooled investment fund	12.9		—		—		12.9
Total	$	70.8	$	0.2	$	5.2	$	65.7
Total investment securities(4)	$	3,507.4	$	14.9	$	134.0	$	3,388.2


(in millions)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Fair Value(1)
As of December 31, 2023
Current:
Debt securities:
U.S. treasury notes	$	410.1	$	0.8	$	32.3	$	378.6
Corporate and sovereign debt securities	1,086.8		13.6		31.6		1,068.8
Municipal bonds	70.8		0.3		5.4		65.7
Asset-backed securities	582.6		3.2		4.2		581.6
Mortgage-backed securities	951.5		5.9		30.0		927.4
Total	$	3,101.8	$	23.8	$	103.5	$	3,022.1

Non-current:


Debt securities(3)	$	28.6	$	0.6	$	0.8	$	28.4


Mutual fund	29.1		—		3.6		25.5
Pooled investment fund	12.9		—		—		12.9
Total	$	70.6	$	0.6	$	4.4	$	66.8
Total investment securities(4)	$	3,172.4	$	24.4	$	107.9	$	3,088.9

(1)The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk.

(2)As of June 30, 2024, the Company has pledged debt securities with a fair value of $82.5 million as collateral against recurring settlement obligations owed in conjunction with its transactions processed through licensed card networks, $360.4 million as collateral for FHLB advances and $699.2 million as collateral against borrowings under the BTFP, as further discussed in Note 10, Financing and Other Debt.

(3)Substantially comprised of municipal bonds.

(4)Excludes $15.6 million and $13.7 million in equity securities as of June 30, 2024 and December 31, 2023, respectively, included in prepaid expenses and other current assets and other assets on the condensed consolidated balance sheets.

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. There are no expected credit losses that have been recorded against our investment securities as of June 30, 2024 and December 31, 2023.


	As of June 30, 2024
	Less than one year				One year or longer				Total
(in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses


Investment-grade rated debt securities:
U.S. treasury notes	$	23.1	$	0.2	$	356.3	$	34.8	$	379.4	$	35.0
Corporate debt securities	342.5		3.7		526.6		31.6		869.1		35.3
Municipal bonds	24.9		0.5		41.8		6.6		66.7		7.1
Asset-backed securities	51.3		0.4		78.9		2.4		130.2		2.8
Mortgage-backed securities	289.3		5.3		552.0		44.6		841.3		49.9
Total debt securities	$	731.1	$	10.1	$	1,555.6	$	120.0	$	2,286.7	$	130.1

	As of December 31, 2023
	Less than one year				One year or longer				Total
Investment-grade rated debt securities:
U.S. treasury notes	$	—	$	—	$	358.6	$	32.3	$	358.6	$	32.3
Corporate debt securities	132.7		2.3		482.9		29.3		615.6		31.6
Municipal bonds	25.3		0.2		42.5		6.0		67.8		6.2
Asset-backed securities	55.0		0.2		131.1		4.0		186.1		4.2
Mortgage-backed securities	374.5		4.7		262.4		25.3		636.9		30.0
Total debt securities	$	587.5	$	7.4	$	1,277.5	$	96.9	$	1,865.0	$	104.3

The above table includes 637 investment positions at June 30, 2024, 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 primarily driven by the elevated interest rate environment and 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.

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



	June 30, 2024
(in millions)	Amortized Cost		Fair Value
Due within one year	$	117.9	$	115.9
Due after 1 year through year 5	739.9		696.8
Due after 5 years through year 10	973.5		948.3
Due after 10 years	1,633.8		1,588.9
Total	$	3,465.1	$	3,349.9

Equity Securities

During the three and six months ended June 30, 2024 and 2023, unrealized gains and losses recognized on equity securities still held as of those dates were immaterial.

Other Investments

The Company’s other investments at June 30, 2024 and December 31, 2023, which include Federal Home Loan Bank stock and certain investments for which there is no readily determinable fair value, were $26.2 million and $11.7 million, respectively.