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Non-marketable Securities

9 Months Ended

Sep. 30, 2023

Note 4 Non-marketable Securities

The carrying balance of non-marketable securities are summarized as follows as of the dates indicated:


	September 30, 2023		December 31, 2022
Federal Reserve Bank stock	$	24,062	$	18,096
Federal Home Loan Bank stock		14,787		20,294
Equity method investments		23,968		21,659
Convertible preferred stock		25,000		29,000
Total	$	87,817	$	89,049

Non-marketable securities included FRB stock, FHLB stock and other non-marketable securities. During the nine months ended September 30, 2023 and 2022, purchases of non-marketable securities, consisting primarily of FHLB stock, totaled $93.9 million and proceeds of non-marketable securities, consisting of redemptions of FHLB stock, totaled $90.3 million. The changes in the Company’s FHLB stock holdings are directly correlated to FHLB line of credit advances and paydowns. During the nine months ended September 30, 2022, purchases totaling $11.5 million were comprised of other non-marketable securities, and proceeds from other non-marketable securities totaled $0.1 million.

FRB and FHLB stock

At September 30, 2023 and December 31, 2022, the Company held FRB stock and FHLB stock for regulatory or debt facility purposes. These are restricted securities which, lacking a market, are carried at cost. There have been no identified events or changes in circumstances that may have an adverse effect on the FRB and FHLB stock carried at cost.

Other non-marketable securities

Other non-marketable securities consist of equity method investments and convertible preferred stock without a readily determinable fair value. During the nine months ended September 30, 2023, the Company recorded $4.0 million in impairments on convertible preferred stock related to venture capital investments, included in other non-interest income in the Company’s consolidated statements of operations. No impairments were recorded during 2022. During the three and nine months ended September 30, 2023, the Company recorded net unrealized losses on equity method investments totaling zero and $0.4 million, respectively. During the three and nine months ended September 30, 2022, the Company recorded net unrealized gains on equity method investments totaling $1.3 million and $1.4 million, respectively. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations.