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Non-marketable Securities

6 Months Ended

Jun. 30, 2024

Note 4 Non-marketable Securities

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


	June 30, 2024		December 31, 2023
Federal Reserve Bank stock	$	24,062	$	24,062
Federal Home Loan Bank stock		3,414		16,828
Convertible preferred stock		20,508		25,000
Equity method investments		25,003		24,587
Total	$	72,987	$	90,477

Non-marketable securities included FRB stock, FHLB stock, convertible preferred stock and equity method investments. During the six months ended June 30, 2024, purchases of non-marketable securities totaled $16.9 million, and proceeds from redemptions and sales of non-marketable securities totaled $30.8 million. Purchases consisted primarily of FHLB stock, and proceeds consisted primarily of redemptions of FHLB stock. Changes in the Company’s FHLB stock holdings were directly correlated to FHLB line of credit advances and paydowns. During the six months ended June 30, 2023, purchases of non-marketable securities totaled $77.1 million, and proceeds from non-marketable securities totaled $73.4 million.

FRB and FHLB stock

At June 30, 2024 and December 31, 2023, 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.

Convertible preferred stock

Non-marketable securities include convertible preferred stock without a readily determinable fair value. During the three and six months ended June 30, 2024, the Company recorded $3.9 million of impairment on convertible preferred stock related to venture capital investments, included in other non-interest income in the Company’s consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded $4.0 million of impairment on convertible preferred stock related to venture capital investments. During the three and six months ended June 30, 2024, the Company sold convertible preferred stock totaling $1.0 million, which generated realized gains of $0.1 million recorded in other non-interest income in the Company’s consolidated statements of operations. The Company purchased $0.0 million and $0.4 million of convertible preferred stock during the three and six months ended June 30, 2024, respectively.

Equity method investments

Non-marketable securities also include equity method investments. During the three and six months ended June 30, 2024, the Company recorded net unrealized gains on equity method investments totaling $0.3 million. During the three and six months ended June 30, 2023, the Company recorded net unrealized losses on equity method investments totaling $0.1 million and $0.4 million, respectively. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations.