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Non-marketable Securities

9 Months Ended

Sep. 30, 2024

Note 4 Non-marketable Securities

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


	September 30, 2024		December 31, 2023
Federal Reserve Bank stock	$	24,062	$	24,062
Federal Home Loan Bank stock		567		16,828
Convertible preferred stock		20,508		25,000
Equity method investments		27,216		24,587
Total	$	72,353	$	90,477

Non-marketable securities included FRB stock, FHLB stock, convertible preferred stock and equity method investments. During the nine months ended September 30, 2024, purchases of non-marketable securities totaled $26.2 million, and proceeds from redemptions and sales of non-marketable securities totaled $42.6 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 nine months ended September 30, 2023, purchases of non-marketable securities totaled $93.9 million, and proceeds from non-marketable securities totaled $90.3 million.

FRB and FHLB stock

At September 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 nine months ended September 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 nine months ended September 30, 2023, the Company recorded $4.0 million of impairment on convertible preferred stock related to venture capital investments. During the nine months ended September 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 zero and $0.4 million of convertible preferred stock during the three and nine months ended September 30, 2024, respectively.

Equity method investments

Non-marketable securities also include equity method investments totaling $25.4 million and $24.6 million at September 30, 2024 and December 31, 2023, respectively, and equity method investments without a readily determinable fair value totaling $1.8 million and

zero at September 30, 2024 and December 31, 2023, respectively. During the three and nine months ended September 30, 2024, the Company recorded net unrealized gains on equity method investments totaling $0.4 million and $0.7 million, respectively. 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. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations. Carrying values of equity method investments without a readily determinable fair value are updated periodically and impairments may be taken to reflect a new basis. The Company recorded no impairment related to equity method investments without a readily determinable fair value for the nine months ended September 30, 2024 or the year ended December 31, 2023.