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Note 10 - Investments in Marketable Securities

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 10 – Investments in Marketable Securities

Our investments in marketable equity securities are carried at fair value with the changes in unrealized gains and losses recognized in our results of operations at each measurement date. Our investments in marketable debt securities are classified as available for sale securities and carried at fair value with the unrealized gains and losses recognized through accumulated other comprehensive income at each measurement date. Any credit-related decline in fair market values below the amortized cost of our available for sale debt securities are recorded in our results of operations through an allowance for credit losses. Realized gains and losses from securities sales are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 11 for a description of the Company's methodology for determining the fair value of marketable securities.

Marketable securities consist of the following (in thousands):

		September 30, 2024								December 31, 2023
		Amortized Cost				Fair Value				Amortized Cost				Fair Value
Investments available for sale:
Marketable equity securities		$	30,176			$	164,754			$	30,176			$	111,117
Corporate debt securities			–				–				2,497				2,441
U.S. Treasury securities			–				–				2,990				2,986
Restricted investments available for sale:
Marketable equity securities			17,702				23,001				24,134				26,779
Corporate debt securities			59,267				58,812				59,586				57,731
Asset-based securities			17,756				16,646				19,388				17,659
U.S. Treasury securities			46,224				44,671				46,771				42,863
State and municipal securities			3,813				3,782				4,106				4,047
		$	174,938			$	311,666			$	189,648				265,623

Included in the marketable equity securities are the following (in thousands, except share amounts):

September 30, 2024

December 31, 2023

Shares

Cost

Fair

Value

Shares

Cost

Fair

Value

NHI Common Stock

1,630,642

$

24,734

$

137,072

1,630,642

$

24,734

$

91,071

The amortized cost and estimated fair value of debt securities classified as available for sale, by contractual maturity, are as follows (in thousands):

		September 30, 2024								December 31, 2023
		Cost				Fair Value				Cost				Fair Value
Maturities:
Within 1 year		$	24,509			$	24,023			$	19,664			$	19,328
1 to 5 years			71,047				69,082				81,517				77,118
6 to 10 years			31,197				30,499				33,515				30,802
Over 10 years			307				307				642				479
		$	127,060			$	123,911			$	135,338			$	127,727

Gross unrealized gains related to marketable equity securities are $140,177,000 and $84,514,000 as of September 30, 2024 and December 31, 2023, respectively. Gross unrealized losses related to marketable equity securities are $300,000 and $928,000 as of September 30, 2024 and December 31, 2023, respectively. For the three months ended September 30, 2024 and 2023, the Company recognized net unrealized gains of $32,767,000 and net unrealized losses of $3,093,000, respectively, for the changes in fair market value of the marketable equity securities in the interim condensed consolidated statements of operations. For the nine months ended September 30, 2024 and 2023, the Company recognized net unrealized gains of $56,290,000 and 2,943,000, respectively, for the changes in fair market value of the marketable equity securities in the interim condensed consolidated statements of operations.

Gross unrealized gains related to available for sale marketable debt securities are $1,104,000 and $326,000 as of September 30, 2024 and December 31, 2023, respectively. Gross unrealized losses related to available for sale marketable debt securities are $4,253,000 and $7,937,000 as of September 30, 2024 and December 31, 2023, respectively.

The Company’s unrealized losses in our available for sale marketable debt securities were determined to be non-credit related. The Company has not recognized any credit related impairments for the nine months ended September 30, 2024 and 2023.

For the marketable debt securities in gross unrealized loss positions, (a) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (b) the Company expects that the contractual principal and interest will be received on the investment securities.

Proceeds from the sale of available for sale marketable securities during the nine months ended September 30, 2024 and 2023 were $39,776,000 and $36,578,000, respectively. Investment gains of $331,000 and investment losses of $603,000 were realized on these sales during the nine months ended September 30, 2024 and 2023, respectively.