Investment Securities

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

NOTE 5. INVESTMENT SECURITIES

During the nine months ended September 30, 2016, the Company completed the disposition of its remaining position in investment securities, including common stock and debt securities of a publicly traded real estate company, with a total basis of approximately $6.8 million, resulting in net proceeds of approximately $6.3 million, or a loss of approximately $576,000. During the nine months ended September 30, 2015, the Company sold preferred stock of a publicly traded real estate company and debt securities of another publicly traded real estate company for aggregate proceeds of approximately $2.9 million.

The Company had no remaining available-for-sale securities as of September 30, 2016.

Available-for-sale securities consisted of the following as of December 31, 2015: 

	As of December 31, 2015
			Gains in		Losses in
			Accumulated		Accumulated		Estimated
			Other		Other		Fair Value
			Comprehensive		Comprehensive		(Level 1 and 2
	Cost (1)		Income		Income		(Inputs)
Debt Securities	$	843,951	$	—	$	(41,451)	$	802,500
Total Debt Securities		843,951		—		(41,451)		802,500
Common Stock		5,981,464		—		(1,080,197)		4,901,267
Total Equity Securities	$	5,981,464		—		(1,080,197)		4,901,267
Total Available-for-Sale Securities	$	6,825,415	$	—	$	(1,121,648)	$	5,703,767

⁽¹⁾ The cost basis in the common stock investment is net of an other-than-temporary impairment charge of approximately $60,000 charged to earnings through investment income in the consolidated statements of operations.

The gross unrealized loss included in accumulated other comprehensive income as of December 31, 2015 was approximately $1.1 million, net of tax of approximately $433,000. During the nine months ended September 30, 2016, but prior to the disposition of the investment securities, gross unrealized gains of approximately $546,000, net of tax of approximately $211,000, were earned and included in other comprehensive income to reduce the accumulated comprehensive loss balance. The remaining unrealized loss of approximately $576,000, was then realized upon disposition during the nine months ended September 30, 2016, and removed from accumulated other comprehensive income, net of tax of approximately $222,000, and charged to earnings as an investment loss.

During the nine months ended September 30, 2015, gross unrealized losses of approximately $78,000, net of tax of approximately $30,000, were recorded through other comprehensive income. The gross unrealized losses of approximately $78,000 include a gross unrealized loss of approximately $246,000, offset by approximately $168,000 in gross unrealized gains on the preferred stock investments prior to their sale in the third quarter of 2015.

Following is a table reflecting the sale of investment securities and the gains or losses recognized during the nine months ended September 30, 2016 and 2015: 

	For the Nine Months Ended September 30,
	2016		2015
Proceeds from the Disposition of Debt Securities	$	827,738	$	2,084,994
Cost Basis of Debt Securities Sold		(843,951)		(1,930,080)
Loss recognized in Statement of Operations on the Disposition of Debt Securities	$	(16,213)	$	154,914
Proceeds from the Disposition of Equity Securities		5,424,624		834,964
Cost Basis of Equity Securities Sold		(5,983,978)		(704,173)
Gain (Loss) recognized in Statement of Operations on the Disposition of Equity Securities	$	(559,354)	$	130,791
Total Gain (Loss) recognized in Statement of Operations on the Disposition of Debt and Equity Securities	$	(575,567)	$	285,705