Note 11 - Investments in Marketable Securities

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 11 – 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 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 12 for a description of the Company's methodology for determining the fair value of marketable securities.

Marketable securities consist of the following (in thousands):

	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investments available for sale:
Marketable equity securities	$	30,176	$	105,893	$	30,176	$	128,590
Corporate debt securities		20,005		19,905		25,812		25,778
Asset-backed securities		2,467		2,456		2,485		2,480
U.S. Treasury securities		14,251		14,229		19,519		19,504
Restricted investments available for sale:
Marketable equity securities		25,153		24,520		4,783		4,680
Corporate debt securities		64,796		67,786		61,709		66,247
Asset-based securities		33,804		34,512		40,655		41,769
U.S. Treasury securities		26,067		25,736		20,760		21,159
State and municipal securities		9,239		9,497		12,497		12,898
	$	225,958	$	304,534	$	218,396		323,105

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

	September 30, 2021						December 31, 2020
	Shares		Cost		Fair Value		Shares		Cost		Fair Value
NHI Common Stock		1,630,642	$	24,734	$	87,239		1,630,642	$	24,734	$	112,792

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

	September 30, 2021				December 31, 2020
	Cost		Fair Value		Cost		Fair Value
Maturities:
Within 1 year	$	34,690	$	34,792	$	49,694	$	49,863
1 to 5 years		97,382		99,947		99,143		103,002
6 to 10 years		38,060		38,901		34,326		36,685
Over 10 years		497		481		274		285
	$	170,629	$	174,121	$	183,437	$	189,835

Gross unrealized gains related to marketable equity securities are $76,151,000 and $98,445,000 as of September 30, 2021 and December 31, 2020, respectively. Gross unrealized losses related to marketable equity securities are $1,067,000 and $134,000 as of September 30, 2021 and December 31, 2020, respectively. For the three months and nine months ended September 30, 2021, the Company recognized net unrealized losses of $23,797,000 and $23,227,000, respectively, for the changes in fair market value of the marketable equity securities in the interim condensed consolidated statements of operations. For the three months and nine months ended September 30, 2020, the Company recognized net unrealized losses of $241,000 and $40,580,000, 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 $4,288,000 and $6,759,000 as of September 30, 2021 and December 31, 2020, respectively. Gross unrealized losses related to available for sale marketable debt securities are $796,000 and $361,000 as of September 30, 2021 and December 31, 2020, 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 three months or nine months ending September 30, 2021 and 2020.

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 marketable securities during the nine months ended September 30, 2021 and 2020 were $89,129,000 and $28,004,000, respectively. Investment gains of $941,000 and $135,000 were realized on these sales during the nine months ended September 30, 2021 and 2020, respectively.