Investment Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

Investment securities consisted of the following:

	June 30, 2023		December 31, 2022
Debt securities available for sale	$	80,865	$	81,643
Equity securities at fair value:
Marketable equity securities	12,785		12,724
Mutual funds invested in debt securities	22,481		22,069
Long-term investment securities at fair value (1)	27,911		28,919
Total equity securities at fair value	63,177		63,712
Total investment securities at fair value	144,042		145,355
Less:
Long-term investment securities at fair value (1)	27,911		28,919
Current investment securities at fair value	$	116,131	$	116,436
Long-term investment securities at fair value (1)	$	27,911	$	28,919
Equity-method investments	16,841		16,040
Total long-term investments	$	44,752	$	44,959
Equity securities and other long-term investments at cost (2)	$	7,755	$	2,755

(1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820.

(2) These assets are without readily determinable fair values that do not qualify for the NAV practical expedient and are included in Other assets on the condensed consolidated balance sheets.

Net gains (losses) recognized on investment securities were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net gains (losses) recognized on equity securities	$	424	$	(3,465)	$	642	$	(5,339)
Net gains (losses) recognized on debt securities available for sale	1		6		(179)		6
Impairment expense	(212)		(671)		(256)		(1,836)
Net gains (losses) recognized on investment securities	$	213	$	(4,130)	$	207	$	(7,169)

(a) Debt Securities Available for Sale:

The components of debt securities available for sale at June 30, 2023 were as follows:    

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	80,846	$	19	$	—	$	80,865

The table below summarizes the maturity dates of debt securities available for sale at June 30, 2023.

Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. government securities	$	797	$	797	$	—	$	—
Corporate securities	24,595		16,833		7,762		—
U.S. mortgage-backed securities	25,439		18,470		6,915		54
Commercial paper	7,479		7,479		—		—
U.S. treasury bills	22,555		22,555		—		—
Total debt securities available for sale by maturity dates	$	80,865	$	66,134	$	14,677	$	54

The components of debt securities available for sale at December 31, 2022 were as follows:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	81,629	$	14	$	—	$	81,643

There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at June 30, 2023 and December 31, 2022, respectively.

Gross realized gains and losses on debt securities available for sale were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Gross realized gains on sales	$	1	$	6	$	5	$	7
Gross realized losses on sales	—		(1)		(184)		(1)
Net gains (losses) recognized on debt securities available for sale	$	1	$	5	$	(179)	$	6
Impairment expense	$	(212)	$	(671)	$	(256)	$	(1,836)

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 six months ended June 30, 2023 and 2022, respectively:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net gains (losses) recognized on equity securities	$	424	$	(3,465)	$	642	$	(5,339)
Less: Net gains recognized on equity securities sold	155		13		271		306
Net unrealized gains (losses) recognized on equity securities still held at the reporting date	$	269	$	(3,478)	$	371	$	(5,645)

The Company’s investments in mutual funds that invest in debt securities are classified as Level 1 under the fair value hierarchy disclosed in Note 9. 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 has unfunded commitments of $426 related to long-term investment securities at fair value as of June 30, 2023.

The Company received no cash distributions for the six months ended June 30, 2023 and $1,349 of cash distributions for the six months ended June 30, 2022. The company recorded $1,900 of in-transit redemptions as of June 30, 2023. The Company classified all cash distributions as investing cash inflows.

(c) Equity-Method Investments:

Equity-method investments consisted of the following:

	June 30, 2023		December 31, 2022
Mutual fund and hedge funds	$	16,841	$	16,040

At June 30, 2023, the Company’s ownership percentages in the mutual fund and hedge funds accounted for under the equity method ranged from 7.02% to 38.51%. The Company’s ownership percentage in these investments meets the threshold for equity-method accounting.

Equity in earnings (losses) from investments were:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Mutual fund and hedge funds	$	959	$	(2,311)	$	800	$	(4,553)

(d) Equity Securities and Other Long-Term Investments Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient

Equity securities and other long-term investments without readily determinable fair values that do not qualify for the NAV practical expedient consisted of profit participation agreements and investments in various limited liability companies. During the six months ended June 30, 2023, the Company invested $5,000 into two additional investments, which do not qualify for the NAV practical expedient. The total carrying value of these investments that do not qualify for the NAV practical expedient was $7,755 as of June 30, 2023 and $2,755 as of December 31, 2022, 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 six months ended June 30, 2023 and 2022, respectively.