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Investment Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
Investment securities consisted of the following:
September 30,
2020		December 31, 2019
Debt securities available for sale$89,239 $83,445 
Equity securities at fair value:
Marketable equity securities11,897 23,819 
Mutual funds invested in debt securities22,956 22,377 
Long-term investment securities at fair value (1)
31,619 45,781 
          Total equity securities at fair value66,472 91,977 
Total investment securities at fair value155,711 175,422 
Less:
Long-term investment securities at fair value
31,619 45,781 
Current investment securities at fair value124,092 129,641 
Equity-method investments$16,240 $15,942 
(1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820.

Net gains (losses) recognized on investment securities were as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Net gains (losses) recognized on equity securities$2,516 $(1,506)$(4,510)$5,545 
Net gains (losses) recognized on debt securities available for sale22 25 (25)67 
Impairment expense(22)(6)(408)(11)
Net gains (losses) recognized on investment securities$2,516 $(1,487)$(4,943)$5,601 
(a) Debt Securities Available for Sale:
The components of debt securities available for sale at September 30, 2020 were as follows:
CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Marketable debt securities$88,336 $903 $— $89,239 
The table below summarizes the maturity dates of debt securities available for sale at September 30, 2020.
Investment Type:Fair ValueUnder 1 Year1 Year up to 5 YearsMore than 5 Years
U.S. Government securities$11,412 $9,068 $2,344 $— 
Corporate securities58,481 28,863 29,618 — 
U.S. mortgage-backed securities5,759 114 5,645 — 
Commercial paper13,587 13,587 — — 
Total debt securities available for sale by maturity dates
$89,239 $51,632 $37,607 $— 

The components of debt securities available for sale at December 31, 2019 were as follows:
CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Marketable debt securities$82,714 $731 $— $83,445 

There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at September 30, 2020 and December 31, 2019, respectively.

Gross realized gains and losses on debt securities available for sale were as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Gross realized gains on sales$23 $27 $193 $74 
Gross realized losses on sales(1)(2)(218)(7)
Net gains (losses) recognized on debt securities available for sale$22 $25 $(25)$67 
Impairment expense$(22)$(6)$(408)$(11)

Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company’s investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements.

(b) Equity Securities at Fair Value:

The following is a summary of unrealized and realized net gains and losses recognized in net income on equity securities at fair value during the three and nine months ended September 30, 2020 and 2019, respectively:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Net gains (losses) recognized on equity securities$2,516 $(1,506)$(4,510)$5,545 
Less: Net (losses) gains recognized on equity securities sold(2)58 (19)468 
Net unrealized gains (losses) recognized on equity securities still held at the reporting date$2,518 $(1,564)$(4,491)$5,077 
The Company’s marketable equity securities and mutual funds invested in debt securities are classified as Level 1 under the fair value hierarchy disclosed in Note 12. Their fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.

The Company received cash distributions of $30,358 and recognized a receivable of $2,438 of in-transit redemptions as of September 30, 2020 related to its long-term investment securities at fair value. The Company classified $30,255 of these distributions as investing cash inflows for the nine months ended September 30, 2020. The remaining distributions were classified as operating cash inflows.

(c) Equity-Method Investments:

Equity-method investments consisted of the following:
 September 30,
2020		December 31, 2019
Mutual fund and hedge funds$16,240 $15,509 
Ladenburg Thalmann Financial Services Inc. (“LTS”)— 433 
$16,240 $15,942 

At September 30, 2020, the Company’s ownership percentages in the mutual fund and hedge funds accounted for under the equity method ranged from 6.24% to 36.70%. The Company’s ownership percentage in these investments meets the threshold for equity-method accounting.
In November 2019, LTS entered into an Agreement and Plan of Merger with Advisor Group whereby each LTS common share would be converted into the right to receive $3.50 per common share. On February 14, 2020, the merger was completed and the Company received proceeds of $53,169 in exchange for the Company’s 15,191,205 common shares of LTS. The Company also tendered 240,000 shares of LTS 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) for redemption and received an additional $6,009 in March 2020. At the closing of the transaction, the Company’s Executive Vice President resigned as Chairman, President and Chief Executive Officer of LTS, and the Company’s management agreement with LTS was terminated.
Equity in earnings (losses) from investments were:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Mutual fund and hedge funds$1,468 $(632)$775 $(20)
LTS372 139 53,424 (846)
Other— 25 — 75 
Equity in earnings (losses) from investments$1,840 $(468)$54,199 $(791)

The Company received cash distributions of $53,528 (including the $53,169 received by the Company in exchange for the Company’s 15,191,205 common shares of LTS) and $1,495 from the Company’s equity-method investments for the nine months ended September 30, 2020 and 2019, respectively. The Company classified these cash distributions as operating activities on the condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and September 30, 2019, respectively.
(d) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical ExpedientEquity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of investments in various limited liability companies at September 30, 2020 and December 31, 2019, respectively. The total carrying value of these investments was $5,200 as of September 30, 2020 and $6,200 as of December 31, 2019, and was included in “Other assets” on the condensed consolidated balance sheets. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three and nine months ended September 30, 2020 and 2019, respectively.