Other Investments

3 Months Ended

Mar. 31, 2014

Note 4. Other Investments

FHLB and FRB Stock

The Company’s investment in stock issued by the FHLB and FRB totaled $57.2 million and $64.4 million at March 31, 2014 and December 31, 2013, respectively. Ownership of government agency securities is restricted to member banks, and the securities do not have readily determinable market values. The Company records investments in FHLB and FRB stock at cost in Other assets of the consolidated balance sheets and evaluates these investments for impairment. The Company expects to recover the full amount invested in FHLB and FRB stock.

Private Equity and Alternative Investments

The Company has ownership interests in a limited number of private equity, venture capital, real estate and hedge funds that are not publicly traded and do not have readily determinable fair values. These investments are carried at cost in the Other assets section of the consolidated balance sheets and are net of impairment write-downs, if applicable. The Company’s investments in these funds totaled $31.6 million at March 31, 2014 and $34.0 million at December 31, 2013. A summary of investments by fund type is provided below:

(in thousands)	March 31,		December 31,
Fund Type	2014		2013
Private equity and venture capital	$	19,649	$	20,298
Real estate	7,635		7,646
Hedge	1,733		2,733
Other	2,572		3,275
Total	$	31,589	$	33,952

Management reviews these investments quarterly for impairment. The impairment assessment includes a review of the most recent financial statements and investment reports for each fund and discussions with fund management. An impairment loss is recognized if it is deemed probable that the Company will not recover the cost of an investment. The impairment loss is recognized in Other noninterest income in the consolidated statements of income. The new cost basis of the investment is not adjusted for subsequent recoveries in value. No impairment losses were recognized on private equity and alternative investments in the quarter ended March 31, 2014. The Company recognized impairment losses totaling $0.4 million on its investments during the three months ended March 31, 2013.