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Note 9 - Investments in Marketable Securities

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

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

Note 9 – 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 10 for a description of the Company's methodology for determining the fair value of marketable securities.

Marketable securities consist of the following (in thousands):

		March 31, 2025								December 31, 2024
		Book Value				Fair Value				Book Value				Fair Value
Investments available for sale:
Marketable equity securities		$	30,176			$	152,785			$	30,176			$	140,064
Restricted investments available for sale:
Marketable equity securities			18,779				21,697				18,534				23,190
Corporate debt securities			58,006				57,223				58,927				57,471
Asset-based securities			15,306				14,263				15,593				14,410
U.S. Treasury securities			46,814				44,952				46,811				44,186
State and municipal securities			3,762				3,729				3,787				3,737
		$	172,843			$	294,649			$	173,828				283,058

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

March 31, 2025

December 31, 2024

Shares

Cost

Fair

Value

Shares

Cost

Fair

Value

NHI Common Stock

1,630,642

$

24,734

$

120,439

1,630,642

$

24,734

$

113,003

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

		March 31, 2025								December 31, 2024
		Cost				Fair Value				Cost				Fair Value
Maturities:
Within 1 year		$	24,655			$	24,424			$	25,707			$	25,317
1 to 5 years			66,455				64,280				66,117				63,379
6 to 10 years			32,208				31,019				32,648				30,606
Over 10 years			570				444				646				502
		$	123,888			$	120,167			$	125,118			$	119,804

Gross unrealized gains related to marketable equity securities are $126,575,000 and $115,259,000 as of March 31, 2025 and December 31, 2024, respectively. Gross unrealized losses related to marketable equity securities are $1,049,000 and $715,000 as of March 31, 2025 and December 31, 2024, respectively. For the three months ended March 31, 2025 and 2024, the Company recognized net unrealized gains of $10,982,000 and $14,399,000, 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 $494,000 and $135,000 as of March 31, 2025 and December 31, 2024, respectively. Gross unrealized losses related to available for sale marketable debt securities are $4,215,000 and $5,449,000 as of March 31, 2025 and December 31, 2024, 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 three months ended March 31, 2025 and 2024.

For the marketable 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 three months ended March 31, 2025 and 2024 were $12,288,000 and $11,615,000, respectively. Investment gains of $241,000 and $344,000 were realized on these sales during the three months ended March 31, 2025 and 2024, respectively.