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Note 10 - Investments in Marketable Securities
6 Months Ended
Jun. 30, 2023
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):

 

  

June 30, 2023

  

December 31, 2022

 
  

Amortized

Cost

  

Fair

Value

  

Amortized

Cost

  

Fair

Value

 

Investments available for sale:

                

Marketable equity securities

 $30,176  $103,812  $30,176  $100,786 

Corporate debt securities

  7,386   7,192   14,317   13,885 

Asset-backed securities

  -   -   500   494 

U.S. Treasury securities

  4,037   3,948   9,009   8,757 

Restricted investments available for sale:

                

Marketable equity securities

  24,085   25,127   24,326   22,358 

Corporate debt securities

  53,671   50,398   54,412   51,009 

Asset-based securities

  22,053   19,909   24,605   22,437 

U.S. Treasury securities

  47,786   43,144   45,989   41,294 

State and municipal securities

  4,812   4,692   4,877   4,771 
  $194,006  $258,222  $208,211   265,791 

 

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

 

  

June 30, 2023

  

December 31, 2022

 
  

Shares

  

Cost

  

Fair

Value

  

Shares

  

Cost

  

Fair

Value

 

NHI Common Stock

  1,630,642  $24,734  $85,478   1,630,642  $24,734  $85,152 

 

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

 

  

June 30, 2023

  

December 31, 2022

 
  

Cost

  

Fair

Value

  

Cost

  

Fair

Value

 

Maturities:

                

Within 1 year

 $22,071  $21,587  $33,662  $33,037 

1 to 5 years

  77,493   72,553   81,500   76,394 

6 to 10 years

  39,581   34,554   38,547   33,216 

Over 10 years

  600   589   -   - 
  $139,745  $129,283  $153,709  $142,647 

 

Gross unrealized gains related to marketable equity securities are $76,349,000 and $71,869,000 as of June 30, 2023 and December 31, 2022, respectively. Gross unrealized losses related to marketable equity securities are $1,671,000 and $3,227,000 as of June 30, 2023 and December 31, 2022, respectively. For the three months ended June 30, 2023 and 2022, the Company recognized net unrealized gains of $4,650,000 and net unrealized losses of $3,549,000, respectively, for the changes in fair market value of the marketable equity securities in the interim condensed consolidated statements of operations. For the six months ended June 30, 2023 and 2022, the Company recognized net unrealized gains of $6,036,000 and net unrealized losses of $423,000, 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 $24,000 and $9,000 as of June 30, 2023 and December 31, 2022, respectively. Gross unrealized losses related to available for sale marketable debt securities are $10,486,000 and $11,071,000 as of June 30, 2023 and December 31, 2022, 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 six months ended  June 30, 2023 and 2022.

 

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 six months ended June 30, 2023 and 2022 were $28,051,000 and $30,814,000, respectively. Investment losses of $561,000 and $364,000 were realized on these sales during the six months ended June 30, 2023 and 2022, respectively.