Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Cohen & Co Inc. | |
Entity Central Index Key | 0001270436 | |
Trading Symbol | cohn | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 1,246,710 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | $ 235,018 | $ 8,304 | |
Receivables from brokers, dealers, and clearing agencies | 69,996 | 96,132 | |
Due from related parties | 773 | 466 | |
Other receivables | 4,723 | 46,625 | |
Investments-trading | 237,541 | 307,852 | |
Other Investments, at fair value | 9,693 | 14,864 | |
Receivables under resale agreements | 5,504,667 | 7,500,002 | |
Investments in equity method affiliates | 4,556 | 3,799 | |
Goodwill | [1] | 109 | 7,992 |
Right-of-use asset - operating leases | 6,583 | 7,155 | |
Other assets | 3,023 | 8,433 | |
Total assets | 6,076,682 | 8,001,624 | |
Liabilities | |||
Payables to brokers, dealers, and clearing agencies | 121,458 | 241,261 | |
Accounts payable and other liabilities | 227,022 | 20,295 | |
Accrued compensation | 7,402 | 4,046 | |
Trading securities sold, not yet purchased | 66,156 | 77,947 | |
Securities sold under agreements to repurchase | 5,524,758 | 7,534,443 | |
Deferred income taxes | 1,329 | 1,339 | |
Lease liability - operating leases | 7,091 | 7,693 | |
Redeemable financial instruments | 16,878 | 16,983 | |
Debt | 64,209 | 48,861 | |
Total liabilities | 6,036,303 | 7,952,868 | |
Commitments and contingencies (See note 21) | |||
Stockholders' Equity: | |||
Voting Non-Convertible Preferred Stock, $0.001 par value per share, 60,000,000 shares authorized, 27,413,098 shares issued and outstanding, respectively | 27 | 27 | |
Common Stock, $0.01 par value per share, 100,000,000 shares authorized, 1,246,710 and 1,193,624 shares issued and outstanding, respectively, including 86,566 and 73,715 unvested or restricted share awards, respectively | 12 | 12 | |
Additional paid-in capital | 68,669 | 68,714 | |
Accumulated other comprehensive loss | (925) | (915) | |
Accumulated deficit | (36,782) | (34,519) | |
Total stockholders' equity | 31,001 | 33,319 | |
Non-controlling interest | 9,378 | 15,437 | |
Total equity | 40,379 | 48,756 | |
Total liabilities and equity | $ 6,076,682 | $ 8,001,624 | |
[1] | Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table above. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Preferred stock, shares issued (in shares) | 27,413,098 | 27,413,098 |
Preferred stock, shares outstanding (in shares) | 27,413,098 | 27,413,098 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 1,246,710 | 1,193,624 |
Common stock, shares outstanding (in shares) | 1,246,710 | 1,193,624 |
Common stock, unvested or restricted share awards (in shares) | 86,566 | 73,715 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Revenues | |||||
Net trading | $ 20,006 | $ 8,670 | $ 38,567 | $ 17,394 | |
Asset management | 1,692 | 1,745 | 3,307 | 3,747 | |
Principal transactions and other income | 2,421 | 754 | 15 | 1,168 | |
Total revenues | 24,119 | 11,169 | 41,889 | 22,309 | |
Operating expenses | |||||
Compensation and benefits | 11,324 | 6,432 | 25,458 | 12,796 | |
Business development, occupancy, equipment | 640 | 895 | 1,396 | 1,706 | |
Subscriptions, clearing, and execution | 2,548 | 2,056 | 5,128 | 4,329 | |
Professional fee and other operating | 1,597 | 1,190 | 3,379 | 2,869 | |
Depreciation and amortization | 84 | 78 | 164 | 159 | |
Impairment of goodwill | 7,883 | ||||
Total operating expenses | 16,193 | 10,651 | 43,408 | 21,859 | |
Operating income (loss) | 7,926 | 518 | (1,519) | 450 | |
Non-operating income (expense) | |||||
Interest expense, net | (3,081) | (1,939) | (5,686) | (3,793) | |
Income (loss) from equity method affiliates | (1,233) | (248) | (1,340) | (256) | |
Income (loss) before income tax expense (benefit) | 3,612 | (1,669) | (8,545) | (3,599) | |
Income tax expense (benefit) | 343 | (641) | (29) | (747) | |
Net income (loss) | 3,269 | (1,028) | (8,516) | (2,852) | |
Less: Net income (loss) attributable to the non-controlling interest | 2,368 | (618) | (6,315) | (1,240) | |
Net income (loss) attributable to Cohen & Company Inc. | $ 901 | $ (410) | $ (2,201) | $ (1,612) | |
Income (loss) per common share-basic: | |||||
Basic income (loss) per common share (in dollars per share) | $ 0.78 | $ (0.36) | $ (1.91) | $ (1.42) | |
Weighted average shares outstanding-basic (in shares) | 1,160,144 | 1,143,909 | 1,153,512 | 1,138,538 | |
Income (loss) per common share-diluted: | |||||
Diluted income (loss) per common share (in dollars per share) | $ 0.69 | $ (0.36) | $ (1.92) | $ (1.42) | |
Weighted average shares outstanding-diluted (in shares) | [1] | 5,020,453 | 1,676,318 | 3,951,843 | 1,670,947 |
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.40 | |||
Comprehensive income (loss) | |||||
Net income (loss) | $ 3,269 | $ (1,028) | $ (8,516) | $ (2,852) | |
Other comprehensive income (loss) item: | |||||
Foreign currency translation adjustments, net of tax of $0 | 37 | 16 | (63) | 25 | |
Other comprehensive income (loss), net of tax of $0 | 37 | 16 | (63) | 25 | |
Comprehensive income (loss) | 3,306 | (1,012) | (8,579) | (2,827) | |
Less: comprehensive income (loss) attributable to the non-controlling interest | 2,394 | (614) | (6,360) | (1,233) | |
Comprehensive income (loss) attributable to Cohen & Company Inc. | $ 912 | $ (398) | $ (2,219) | $ (1,594) | |
[1] | Potentially diluted securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 2019 2020 2019 2017 Convertible Note - 1,034,483 1,034,483 1,034,483 2013 Convertible Notes - 565,469 - 565,469 Restricted Common Stock - - 21,810 22,008 Restricted Operating LLC units - - 12,616 7,503 - 1,599,952 1,068,909 1,629,463 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss), tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Preferred Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ (20) | $ (20) | $ (20) | $ 5 | $ 12 | $ 68,591 | $ (31,926) | $ (908) | $ 35,774 | $ 6,664 | $ 42,438 | |||||
Net income / (loss) attributable to Cohen & Company Inc. | (1,202) | (1,202) | ||||||||||||||
Net income (loss) | (1,824) | |||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | (622) | |||||||||||||||
Other comprehensive income / (loss) | 6 | 6 | 3 | 9 | ||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 133 | (14) | 119 | (119) | ||||||||||||
Equity-based compensation and vesting of shares | 117 | 117 | 172 | |||||||||||||
Equity-based compensation and vesting of shares, non-controlling interest | 55 | |||||||||||||||
Shares withheld for employee taxes | (87) | (87) | (41) | (128) | ||||||||||||
Dividends/Distributions | (290) | (290) | (396) | |||||||||||||
Dividends/Distributions, NCI | (106) | |||||||||||||||
Purchase and retirement of Common Stock | (65) | (65) | (65) | |||||||||||||
Investment in non-controlling interest | 2,550 | 2,550 | ||||||||||||||
Balance at Mar. 31, 2019 | 5 | 12 | 68,689 | (33,438) | (916) | 34,352 | 8,384 | 42,736 | ||||||||
Balance at Dec. 31, 2018 | $ (20) | $ (20) | $ (20) | 5 | 12 | 68,591 | (31,926) | (908) | 35,774 | 6,664 | 42,438 | |||||
Net income / (loss) attributable to Cohen & Company Inc. | (1,612) | |||||||||||||||
Net income (loss) | (2,852) | |||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | (1,240) | |||||||||||||||
Other comprehensive income / (loss) | 25 | |||||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 133 | (14) | 119 | |||||||||||||
Balance at Jun. 30, 2019 | 5 | 12 | 68,819 | (34,077) | (904) | 33,855 | 7,724 | 41,579 | ||||||||
Balance at Mar. 31, 2019 | 5 | 12 | 68,689 | (33,438) | (916) | 34,352 | 8,384 | 42,736 | ||||||||
Net income / (loss) attributable to Cohen & Company Inc. | (410) | (410) | (410) | |||||||||||||
Net income (loss) | (1,028) | |||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | (618) | (618) | ||||||||||||||
Other comprehensive income / (loss) | 12 | 12 | 4 | 16 | ||||||||||||
Equity-based compensation and vesting of shares | 130 | 130 | 192 | |||||||||||||
Equity-based compensation and vesting of shares, non-controlling interest | 62 | |||||||||||||||
Dividends/Distributions | (229) | (229) | (337) | |||||||||||||
Dividends/Distributions, NCI | (108) | |||||||||||||||
Balance at Jun. 30, 2019 | 5 | 12 | 68,819 | (34,077) | (904) | 33,855 | 7,724 | 41,579 | ||||||||
Balance at Dec. 31, 2019 | 27 | 12 | 68,714 | (34,519) | (915) | 33,319 | 15,437 | 48,756 | ||||||||
Net income / (loss) attributable to Cohen & Company Inc. | (3,102) | |||||||||||||||
Net income (loss) | (3,102) | (11,785) | ||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | (8,683) | |||||||||||||||
Other comprehensive income / (loss) | (29) | (29) | (71) | (100) | ||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | (123) | 8 | (115) | 115 | ||||||||||||
Equity-based compensation and vesting of shares | 46 | 46 | 158 | |||||||||||||
Equity-based compensation and vesting of shares, non-controlling interest | 112 | |||||||||||||||
Shares withheld for employee taxes | (15) | (15) | (39) | (54) | ||||||||||||
Dividends/Distributions | (62) | (62) | (62) | |||||||||||||
Dividends/Distributions, NCI | ||||||||||||||||
Balance at Mar. 31, 2020 | 27 | 12 | 68,622 | (37,683) | (936) | 30,042 | 6,871 | 36,913 | ||||||||
Balance at Dec. 31, 2019 | 27 | 12 | 68,714 | (34,519) | (915) | 33,319 | 15,437 | 48,756 | ||||||||
Net income / (loss) attributable to Cohen & Company Inc. | (2,201) | |||||||||||||||
Net income (loss) | (8,516) | |||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | (6,315) | |||||||||||||||
Other comprehensive income / (loss) | (63) | |||||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | (123) | 8 | 115 | 115 | ||||||||||||
Balance at Jun. 30, 2020 | 27 | 12 | 68,669 | (36,782) | (925) | 31,001 | 9,378 | 40,379 | ||||||||
Balance at Mar. 31, 2020 | 27 | 12 | 68,622 | (37,683) | (936) | 30,042 | 6,871 | 36,913 | ||||||||
Net income / (loss) attributable to Cohen & Company Inc. | 901 | 901 | 901 | |||||||||||||
Net income (loss) | 3,269 | |||||||||||||||
Less: Net income (loss) attributable to the non-controlling interest | 2,368 | 2,368 | ||||||||||||||
Other comprehensive income / (loss) | 11 | 11 | 26 | 37 | ||||||||||||
Equity-based compensation and vesting of shares | 47 | 47 | 160 | |||||||||||||
Equity-based compensation and vesting of shares, non-controlling interest | 113 | |||||||||||||||
Balance at Jun. 30, 2020 | $ 27 | $ 12 | $ 68,669 | $ (36,782) | $ (925) | $ 31,001 | $ 9,378 | $ 40,379 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (8,516) | $ (2,852) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Equity-based compensation | 318 | 363 |
Accretion of income on other investments, at fair value | (124) | (198) |
Realized loss (gain) on other investments, at fair value | 697 | (567) |
Change in unrealized (gain) loss on other investments, at fair value | (242) | (172) |
(Income) / loss from equity method affiliates | 1,340 | 256 |
Depreciation and amortization | 164 | 159 |
Impairment of goodwill | 7,883 | |
Amortization of discount on debt | 345 | 256 |
Deferred tax provision (benefit) | (10) | (747) |
Change in operating assets and liabilities, net: | ||
Change in receivables from / payables to brokers, dealers, and clearing agencies | (93,667) | (69,218) |
Change in receivables from / payables to related parties, net | (307) | 298 |
(Increase) decrease in other receivables | 41,902 | 4,819 |
(Increase) decrease in investments-trading | 70,311 | 63,285 |
(Increase) decrease in receivables under resale agreement | 1,995,335 | 1,577,409 |
(Increase) decrease in other assets | 5,934 | (783) |
Increase (decrease) in accounts payable and other liabilities | 205,982 | 1,061 |
Increase (decrease) in accrued compensation | 3,356 | (2,499) |
Increase (decrease) in trading securities sold, not yet purchased | (11,791) | (12,486) |
(Increase) decrease in securities sold under agreement to repurchase | (2,009,685) | (1,566,997) |
Net cash provided by (used in) operating activities | 209,225 | (8,613) |
Investing activities | ||
Purchase of other investments, at fair value | (119) | (705) |
Sales and returns of principal-other investments, at fair value | 4,959 | 8,008 |
Investment in equity method affiliate | (2,097) | (3,775) |
Purchase of furniture, equipment, and leasehold improvements | (116) | (28) |
Net cash provided by (used in) investing activities | 2,627 | 3,500 |
Financing activities | ||
Proceeds from draws on revolving credit facility | 17,500 | 1,210 |
Proceeds from PPP loan | 2,166 | |
Proceeds from non-convertible debt | 4,500 | |
Repayment of debt | (9,163) | |
Proceeds from redeemable financial instruments | 1,268 | |
Cash used to net share settle equity awards | (54) | (128) |
Purchase and retirement of Common Stock | (65) | |
Proceeds from non-controlling interest investment | 2,550 | |
Non-controlling interest distributions | (213) | |
Cohen & Company Inc. dividends | (62) | (519) |
Net cash provided by (used in) financing activities | 14,887 | 4,103 |
Effect of exchange rate on cash | (25) | (19) |
Net increase (decrease) in cash and cash equivalents | 226,714 | (1,029) |
Cash and cash equivalents, beginning of period | 8,304 | 14,106 |
Cash and cash equivalents, end of period | $ 235,018 | $ 13,077 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Organizational History Cohen Brothers, LLC (“Cohen Brothers”) was formed on October 7, 2004 March 4, 2005 May 31, 2005. From its formation until December 16, 2009, December 16, 2009, As a result of the AFN Merger, AFN contributed substantially all of its assets into Cohen Brothers in exchange for newly issued units of membership interests directly from Cohen Brothers. In addition, AFN received additional Cohen Brothers membership interests directly from its members in exchange for AFN common stock. In accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the AFN Merger was accounted for as a reverse acquisition, and Cohen Brothers was deemed to be the accounting acquirer. As a result, all of AFN's assets and liabilities were required to be revalued at fair value as of the acquisition date. The remaining units of membership interests of Cohen Brothers that were not Subsequent to the AFN Merger, AFN was renamed Cohen & Company Inc. In January 2011, September 1, 2017 January 1, 2010, The Company The Company is a financial services company specializing in fixed income markets. As of June 30, 2020 $2.63 78.2% $2.06 In these financial statements, the “Company” refers to Cohen & Company Inc. and its subsidiaries on a consolidated basis. Cohen & Company, LLC or the “Operating LLC” refers to the main operating subsidiary of the Company. “Cohen Brothers” refers to the pre-Merger Cohen Brothers, LLC and its subsidiaries. “AFN” refers to the pre-merger Alesco Financial Inc. and its subsidiaries. When the term “Cohen & Company Inc.” is used, it is referring to the parent company itself. “JVB Holdings” refers to J.V.B. Financial Holdings, LLC; “JVB” refers to J.V.B. Financial Group LLC, a broker-dealer subsidiary; “CCFL” refers to Cohen & Company Financial Limited (formerly known as EuroDekania Management LTD), a subsidiary regulated by the Financial Conduct Authority (formerly known as Financial Services Authority) in the United Kingdom; “CCFEL” refers to Cohen & Company Financial (Europe) Limited, a subsidiary regulated by the Central Bank of Ireland in Ireland; and “EuroDekania” refers to EuroDekania (Cayman) Ltd., a Cayman Islands exempted company that is externally managed by CCFL. The Company's business is organized into the following three Capital Markets not Asset Management Principal Investing The Company generates its revenue by business segment primarily through the following activities. Capital Markets ● Trading activities of the Company, which include execution and brokerage services, riskless trading activities as well as gains and losses (unrealized and realized) and income and expense earned on securities and derivatives classified as trading; ● Net interest income on the Company's matched book repo financing activities; and ● New issue and advisory revenue comprised primarily of (i) new issue revenue associated with originating, arranging, or placing newly created financial instruments and (ii) revenue from advisory services. Asset Management ● Asset management fees for the Company's on-going asset management services provided to certain Investment Vehicles, which may Principal Investing ● Gains and losses (unrealized and realized) and income and expense earned on securities classified as other investments, at fair value. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. The financial statements of the Company included herein were prepared in conformity with U.S. GAAP for interim financial information and with the instructions to Form 10 10 X. not six June 30, 2020 2019 not 10 December 31, 2019 Capitalized terms used herein without definition have the meanings ascribed to them in the Annual Report on Form 10 December 31, 2019 Effective June 1, 2019, 10. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 3. A. Adoption of New Accounting Standards In February 2016, 2016 02, Leases (Topic 842 2018 01, 2018 10, 2018 11, 2018 20, 2019 01 January 1, 2019. $8,416, $8,860, $20, $18, $406. 13. In June 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326 2018 19, 2019 05, 2019 11 2020 02 2016 13, January 1, 2020 not In January 2017, 2017 04, Intangibles Goodwill and Other (Topic 350 Impairment 2 not 2017 04, January 1, 2020. six June 30, 2020 12. not 2017 04. In March 2017, 2017 08, Receivables – Nonrefundable Fees and Other Costs, Premium Amortization on Purchased Callable Debt Securities (Sub-Topic 310 20 not 2017 08, January 1, 2019 not In August 2017, 2017 12, Derivative and Hedging – Targeted Improvements to Accounting for Hedging Activities (Topic 815 2017 12, January 1, 2019 not In February 2018, 2018 02, Income Statement – Reporting Comprehensive Income (Topic 220 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018 02, January 1, 2019 not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 Nonemployee Share-Based Payment Accounting 718, 2018 07, January 1, 2019 not In August 2018, 2018 13, Fair Value Measurement (Topic 820 820, 3 3 December 15, 2019. 2018 13, January 1, 2020 not In October 2018, 2018 17, Consolidation (Topic 810 for Variable Interest Entities December 15, 2019 2018 17, January 1, 2020 not In November 2018, 2018 18, Collaborative Arrangements (Topic 808 Between Topic 808 606 not 2018 18, January 1, 2020 not In November 2019, 2019 08, Compensation – Stock Compensation (Topic ( 718 606 718, Compensation—Stock Compensation 2019 08, January 1, 2020 not In March 2020, 2020 04 , Reference Rate Reform (Topic 848 December 31, 2022. 2020 04, March 12, 2020 not B. Recent Accounting Developments In December 2019, 2019 12, Income Taxes (Topic 740 740 December 15, 2020 may In January 2020, 2020 01, Investments—Equity Securities (Topic 321 323 815 321, 323, 815 321 December 15, 2020. may C. Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments. These determinations were based on available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates and, therefore, these estimates may not may 8 Cash equivalents 1 Investments-trading third not Other investments, at fair value not Receivables under resale agreements 2 Trading securities sold, not third not Securities sold under agreements to repurchase 2 Redeemable financial instruments 3 Debt June 30, 2020 December 31, 2019 $67,571 $58,635 3 Derivatives may not third |
Note 4 - Other Recent Business
Note 4 - Other Recent Business Transactions or Events | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Other Events [Text Block] | 4. Insurance Acquisition Corporation ("Insurance SPAC") The Company is the sponsor of Insurance Acquisition Corporation (Nasdaq: INSU) (“Insurance SPAC”), a blank check company that is seeking to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one On March 22, 2019, 15,065,000 one $0.0001 one one one $11.50 $10.00 $150.7 45 1,965,000 March 22, 2019, 20,653,333 If Insurance SPAC fails to consummate a Business Combination within the first 18 The Operating LLC is the manager and a member of each of two 375,000 $3,750, $10.00 one one one not may not five not 30 Of the $3,750 $2,550 $2,550 The proceeds from the placement units were added to the net proceeds from the IPO to be held in a trust account. If Insurance SPAC does not first 18 Upon the IPO closing the Sponsor Entities initially collectively held 5,103,333 not 30 not 20% 20% $12.00, $13.50, $15.00, $17.00, 20 30 On June 29, 2020, Consummation of the transactions contemplated by the Merger Agreement is subject to customary conditions of the respective parties, including, among others, that (i) the Merger be approved by the Insurance SPAC's stockholders and the Shift Stockholders; (ii) there has been no 1976, $5,000 Concurrently with the execution and delivery of the Merger Agreement, certain institutional accredited investors (the “PIPE Investors”), including a subsidiary of the Company, entered into subscription agreements (the “PIPE Subscription Agreements”) pursuant to which the PIPE Investors have committed to subscribe for and purchase up to 18,500,000 $10.00. June 29, 2020 ( 200,000 may 1,300,000 15 Upon closing of the Merger, the Company currently expects the Sponsor Entities to collectively retain 375,000 4,000,000 4,500,000 253,000 2,200,000 2,500,000 All of the Sponsor Shares and the shares purchased pursuant to the Subsidiary Subscription Agreement will be subject to restrictions on resale under applicable securities laws until the resale of such shares is either registered under the Securities Act of 1933 not There can be no not, no 11, 24, 25. no not The transaction is expected to close in 2020 ViaNova Capital Group LLC In 2018, first On November 20, 2018, November 16, 2018. May 4, 2019 September 25, 2019 October 28, 2019. On March 19, 2020, March 19, 2020, March 19, 2020 not June 30, 2020 two $2,363 $2,322, 7 January 1, 2021. COVID 19 In March 2020, 19 19 19, 19 ● The unprecedented volatility of the financial markets experienced since March 2020, ● The financial market volatility, as well as the reduction in volumes in the GCF repo and TBA businesses, that resulted from COVID- 19 350. $7,883 six June 30, 2020 12. ● The Company expects that its asset management segment may may July 2020, €375,000. may may ● JVB's mortgage group's operations are centered on serving the financial needs of mortgage originators and institutions that invest in mortgage backed securities. Prolonged high unemployment will most likely impact mortgage originations and demand for and supply of mortgage backed securities, which may The Company will likely be impacted by the pandemic in other ways which the Company cannot yet determine. The Company will continue to monitor market conditions and respond accordingly. The Company applied for and received a $2,166 500 not not 17. The 2020 On January 31, 2020, Pursuant to the note purchase agreement, JKD Investor and RNCS each purchased a senior promissory note in the principal amount of $2,250 $4,500 12% January 31, 2022. February 3, 2020, September 25, 2019, $4,386 2019 December 31, 2019 February 3, 2020. $2,400 2019 17. |
Note 5 - Net Trading
Note 5 - Net Trading | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Trading Activities [Text Block] | 5. Net trading consisted of the following in the periods presented. NET TRADING (Dollars in Thousands) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Net realized gains (losses) - trading inventory $ 8,226 $ 3,540 $ 18,669 $ 9,926 Net unrealized gains (losses) - trading inventory 2,005 1,967 1,565 2,371 Net gains and losses 10,231 5,507 20,234 12,297 Interest income- trading inventory 2,071 2,060 4,548 3,674 Interest income - residential transition loans - 33 - 47 Interest income-receivables under resale agreements 16,643 46,335 58,128 83,819 Interest income 18,714 48,428 62,676 87,540 Interest expense-securities sold under agreements to repurchase (8,775 ) (44,120 ) (43,541 ) (80,502 ) Interest expense-LegacyTexas Credit Facility - (26 ) (39 ) (29 ) Interest expense-margin payable (164 ) (1,119 ) (763 ) (1,912 ) Interest expense (8,939 ) (45,265 ) (44,343 ) (82,443 ) Net trading $ 20,006 $ 8,670 $ 38,567 $ 17,394 Trading inventory includes investments classified as investments-trading as well as trading securities sold, not 7. During 2019, January 1, 2020, 326, January 1, 2020, Also, see note 10 6 17 |
Note 6 - Receivables from and P
Note 6 - Receivables from and Payables to Brokers, Dealers, and Clearing Agencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Due to and from Broker-Dealers and Clearing Organizations Disclosure [Text Block] | 6. Amounts receivable from brokers, dealers, and clearing agencies consisted of the following. RECEIVABLES FROM BROKERS, DEALERS, AND CLEARING AGENCIES (Dollars in Thousands) June 30, 2020 December 31, 2019 Deposits with clearing agencies $ 250 $ 250 Unsettled regular way trades, net 8,653 12,170 Receivables from clearing agencies 61,093 83,712 Receivables from brokers, dealers, and clearing agencies $ 69,996 $ 96,132 Amounts payable to brokers, dealers, and clearing agencies consisted of the following. PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES (Dollars in Thousands) June 30, 2020 December 31, 2019 Margin payable $ 121,458 $ 208,441 Due to clearing agent - 32,820 Payables to brokers, dealers, and clearing agencies $ 121,458 $ 241,261 Deposits with clearing agencies represent contractual amounts the Company is required to deposit with its clearing agents. Securities transactions that settle in the regular way are recorded on the trade date, as if they had settled. The related amounts receivable and payable for unsettled securities transactions are recorded net in receivables from or payables to brokers, dealers, and clearing agencies on the Company's consolidated balance sheets. Receivables from clearing agencies are primarily comprised of (i) cash received by the Company upon execution of short trades that is restricted from withdrawal by the clearing agent and (ii) cash deposited with the FICC to support the Company's General Collateral Funding (“GCF”) matched book repo business. Margin payable represents amounts borrowed from Pershing, LLC to finance the Company's trading portfolio. Substantially all of the Company's investments-trading and deposits with clearing agencies serve as collateral for the margin payable. See note 5 Due to clearing agent represents amounts due to Bank of New York under the Company's intra-day and overnight lending facility supporting the GCF matched repo business. See note 10. |
Note 7 - Financial Instruments
Note 7 - Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | 7. Investments—Trading Investments-trading consisted of the following. INVESTMENTS - TRADING (Dollars in Thousands) June 30, 2020 December 31, 2019 U.S. government agency MBS and CMOs $ 154,592 $ 196,146 U.S. government agency debt securities 6,938 14,680 RMBS 16 15 U.S. Treasury securities 6,425 11,105 ABS 1 100 SBA loans 15,574 27,634 Corporate bonds and redeemable preferred stock 36,044 38,503 Foreign government bonds 732 844 Municipal bonds 3,488 13,737 Certificates of deposit 36 841 Derivatives 11,305 3,686 Equity securities 68 561 Residential transition loans 2,322 - Investments-trading $ 237,541 $ 307,852 Trading Securities Sold, Not Trading securities sold, not TRADING SECURITIES SOLD, NOT (Dollars in Thousands) June 30, 2020 December 31, 2019 U.S. Treasury securities $ 6,657 $ 16,827 Corporate bonds and redeemable preferred stock 49,261 58,083 Municipal bonds 20 20 Derivatives 10,218 3,017 Trading securities sold, not yet purchased $ 66,156 $ 77,947 The Company manages its exposure to changes in interest rates for the interest rate sensitive securities it holds by entering into offsetting short positions for similar fixed rate securities. See note 5 Other Investments, at fair value Other investments, at fair value consisted of the following. OTHER INVESTMENTS, AT FAIR VALUE (Dollars in Thousands) June 30, 2020 Amortized Carrying Unrealized Cost Value Gain / (Loss) Equity securities $ 6,905 $ 7,528 $ 623 U.S. Insurance JV 1,225 1,370 145 SPAC Fund 646 696 50 Residential loans 126 99 (27 ) Other investments, at fair value $ 8,902 $ 9,693 $ 791 December 31, 2019 Amortized Carrying Unrealized Cost Value Gain / (Loss) Equity securities $ 8,598 $ 9,352 $ 754 CLOs 2,894 2,522 (372 ) U.S. Insurance JV 2,048 2,223 175 SPAC Fund 646 668 22 Residential loans 129 99 (30 ) Other investments, at fair value $ 14,315 $ 14,864 $ 549 |
Note 8 - Fair Value Disclosures
Note 8 - Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 8. Fair Value Option The Company has elected to account for certain of its other financial assets at fair value under the fair value option provisions of FASB ASC 825. Such financial assets accounted for at fair value include: ● securities that would otherwise qualify for available for sale treatment; ● investments in equity method affiliates that have the attributes in FASB ASC 946 10 15 2 ● investments in residential loans. The changes in fair value (realized and unrealized gains and losses) of these instruments for which the Company has elected the fair value option are recorded in principal transactions and other income in the consolidated statements of operations. All of the investments for which the Company has elected the fair value option are included as a component of other investments, at fair value in the consolidated balance sheets. The Company recognized net gains (losses) related to changes in fair value of investments that are included as a component of other investments, at fair value during the three June 30, 2020 2019 2,240 490 six June 30, 2020 2019 ( 455 739 Fair Value Measurements In accordance with FASB ASC 820, three 1 3 three 820 Level 1 Level 2 one 1. Quoted prices for similar assets or liabilities in active markets; 2. Quoted prices for identical or similar assets or liabilities in non-active markets; 3. Pricing models whose inputs are derived, other than quoted prices, are observable for substantially the full term of the asset or liability; or 4. Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3 In certain cases, the inputs used to measure fair value may Both observable and unobservable inputs may 3 3 may The following tables present information about the Company's assets and liabilities measured at fair value as of June 30, 2020 December 31, 2019 FAIR VALUE MEASUREMENTS ON A RECURRING BASIS June 30, 2020 (Dollars in Thousands) Significant Significant Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Assets Fair Value (Level 1) (Level 2) (Level 3) Investments-trading: U.S. government agency MBS and CMOs $ 154,592 $ - $ 154,592 $ - U.S. government agency debt securities 6,938 - 6,938 - RMBS 16 - 16 - U.S. Treasury securities 6,425 6,425 - - ABS 1 - 1 - SBA loans 15,574 - 15,574 - Corporate bonds and redeemable preferred stock 36,044 - 36,044 - Foreign government bonds 732 - 732 - Municipal bonds 3,488 - 3,488 - Certificates of deposit 36 - 36 - Derivatives 11,305 - 11,305 - Equity securities 68 - 68 - Residential transition loans 2,322 - - 2,322 Total investments - trading $ 237,541 $ 6,425 $ 228,794 $ 2,322 Other investments, at fair value: Equity securities $ 7,528 $ - $ 7,528 $ - Residential loans 99 - 99 - 7,627 $ - $ 7,627 $ - Investments measured at NAV (1) 2,066 Total other investments, at fair value 9,693 Liabilities Trading securities sold, not yet purchased: U.S. Treasury securities $ 6,657 $ 6,657 $ - $ - Corporate bonds and redeemable preferred stock 49,261 - 49,261 - Municipal bonds 20 - 20 - Derivatives 10,218 - 10,218 - Total trading securities sold, not yet purchased $ 66,156 $ 6,657 $ 59,499 $ - ( 1 As a practical expedient, the Company uses NAV per share (or its equivalent) to measure the fair value of its investments in the U.S. Insurance JV and the SPAC Fund. The U.S. Insurance JV invests in USD denominated debt issued by small insurance and reinsurance companies. The SPAC Fund invests in equity securities of SPACs. According to ASC 820, not FAIR VALUE MEASUREMENTS ON A RECURRING BASIS December 31, 2019 (Dollars in Thousands) Significant Significant Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Assets Fair Value (Level 1) (Level 2) (Level 3) Investments-trading: U.S. government agency MBS and CMOs $ 196,146 $ - $ 196,146 $ - U.S. government agency debt securities 14,680 - 14,680 - RMBS 15 - 15 - U.S. Treasury securities 11,105 11,105 - - ABS 100 - 100 - SBA loans 27,634 - 27,634 - Corporate bonds and redeemable preferred stock 38,503 - 38,503 - Foreign government bonds 844 - 844 - Municipal bonds 13,737 - 13,737 - Certificates of deposit 841 - 841 - Derivatives 3,686 - 3,686 - Equity securities 561 - 561 - Total investments - trading $ 307,852 $ 11,105 $ 296,747 $ - Other investments, at fair value: Equity Securities $ 9,352 $ 2,009 $ 7,343 $ - CLOs 2,522 - - 2,522 Residential loans 99 - 99 - 11,973 $ 2,009 $ 7,442 $ 2,522 Investments measured at NAV (1) 2,891 Total other investments, at fair value $ 14,864 Liabilities Trading securities sold, not yet purchased: U.S. Treasury securities $ 16,827 $ 16,827 $ - $ - Corporate bonds and redeemable preferred stock 58,083 - 58,083 - Municipal bonds 20 - 20 - Derivatives 3,017 - 3,017 - Total trading securities sold, not yet purchased $ 77,947 $ 16,827 $ 61,120 $ - ( 1 820, not The following provides a brief description of the types of financial instruments the Company holds, the methodology for estimating fair value, and the level within the valuation hierarchy of the estimate. The discussion that follows applies regardless of whether the instrument is included in investments-trading; other investments, at fair value; or trading securities sold, not U.S. Government Agency MBS and CMOs third third 2 U.S. Government Agency Debt Securities third 1 2 RMBS third third third 2 U.S. Treasury Securities not 1 CLOs, CDOs, and ABS may not two two third 2 two 2 two may 3 If quotations are unavailable, prices observed by the Company for recently executed market transactions or valuation models prepared by the Company's management may 3 Establishing fair value is inherently subjective (given the volatile and sometimes illiquid markets for certain interests in securitizations) and requires management to make a number of assumptions, including assumptions about the future of interest rates, discount rates, and the timing of cash flows. The assumptions the Company applies are specific to each security. Although the Company may third SBA Loans third third 2 not 2 3 not. Corporate Bonds and Redeemable Preferred Stock third 2 1 Foreign Government Bonds third 2 Municipal Bonds third third 2 third 3 third Certificates of Deposit third 2 Residential Loans 2 Residential transition loans: 3 Equity Securities 1 The Company may not. may 2 The Company may may 2 3 The Company may may may 2 3 Derivatives Foreign Currency Forward Contracts Foreign currency forward contracts are exchange-traded derivatives, which transact on an exchange that is deemed to be active. The fair value of the foreign currency forward contracts is based on current quoted market prices. Valuation adjustments are not 1 9. TBAs and Other Forward Agency MBS Contracts The Company generally values these securities using third third 2 3 not 9. Other Extended Settlement Trades When the Company buys or sells a financial instrument that will not Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis The following table presents additional information about assets measured at fair value on a recurring basis and for which the Company has utilized level 3 LEVEL 3 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Beginning of period $ 4,833 $ 2,779 $ 2,522 $ 2,756 Net trading 37 - (41 ) - Gains & losses (1) (58 ) 6 (661 ) (27 ) Accretion of income (1) 46 91 124 197 Purchases 29 - 638 - Sales and returns of capital (2,565 ) (90 ) (5,538 ) (140 ) Reclassification of RTLs - - 5,278 - End of period $ 2,322 $ 2,786 $ 2,322 $ 2,786 Change in unrealized gains / (losses) (2) $ - $ 6 $ - $ (27 ) ( 1 Gains and losses and accretion of income on other investments, at fair value are recorded as a component of principal transactions and other income in the consolidated statements of operations. ( 2 Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. The following tables provide the quantitative information about level 3 June 30, 2020 December 31, 2019 QUANTITATIVE INFORMATION ABOUT LEVEL 3 (Dollars in Thousands) Significant Range of Fair Value Valuation Unobservable Weighted Significant June 30, 2020 Technique Inputs Average Inputs Assets Investments - trading Residential Transition Loans $ 2,322 Discounted Cash Flow Model Yield 15.00% 15.00% QUANTITATIVE INFORMATION ABOUT LEVEL 3 (Dollars in Thousands) Significant Range of Fair Value Valuation Unobservable Weighted Significant December 31, 2019 Technique Inputs Average Inputs Assets Other investments, at fair value CLOs $ 2,522 Discounted Cash Flow Model Yield 17.9% 16.9% 19.2% Duration-years 5.8 5.3 6.5 Default rate 2.0% 2.0% 2.0% Sensitivity of Fair Value to Changes in Significant Unobservable Inputs For recurring fair value measurements categorized within level 3 ● RTLs: The Company uses a discounted cash flow model to determine the fair value of its investments in RTLs. These loans are short term in nature (generally less than 18 ● CLOs: The Company uses a discounted cash flow model to determine the fair value of its investments in CLOs. Changes in the yield, duration, and default rate assumptions would impact the fair value determined. The longer the duration, the lower the fair value of the investment. The higher the yield, the lower the fair value of the investment. The higher the default rate, the lower the fair value of the investment. Investments in Certain Entities that Calculate NAV Per Share (or its Equivalent) The following table presents additional information about investments in certain entities that calculate NAV per share (regardless of whether the “practical expedient” provisions of FASB ASC 820 June 30, 2020 December 31, 2019 FAIR VALUE MEASUREMENTS OF INVESTMENTS IN CERTAIN ENTITIES THAT CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT) (Dollars in Thousands) Fair Value Unfunded Redemption Redemption June 30, 2020 Commitments Frequency Notice Period Other investments, at fair value U.S. Insurance JV (a) $ 1,370 $ 817 N/A N/A SPAC Fund (b) 696 N/A Quarterly after 1 year lock up 90 days $ 2,066 Fair Value Unfunded Redemption Redemption December 31, 2019 Commitments Frequency Notice Period Other investments, at fair value U.S. Insurance JV (a) $ 2,223 $ 817 N/A N/A SPAC Fund (b) 668 N/A Quarterly after 1 year lock up 90 days $ 2,891 (a) The U.S. Insurance JV invests in USD denominated debt issued by small and medium size insurance and reinsurance companies. (b) The SPAC Fund invests in equity interests of SPACs. |
Note 9 - Derivative Financial I
Note 9 - Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9. FASB ASC 815, Derivatives and Hedging 815” not 815. All of the derivatives that the Company enters into contain master netting arrangements. If certain requirements are met, the offsetting provisions included in FASB ASC 210, Balance Sheet 210” not 210 not no Derivative financial instruments are recorded at fair value. If the derivative was entered into as part of the Company's broker-dealer operations, it will be included as a component of investments-trading or trading securities sold, not The Company may, may TBAs are forward contracts to purchase or sell MBS whose collateral remain “to be announced” until just prior to the trade settlement date. In addition to TBAs, the Company sometimes enters into forward purchases or sales of agency MBS where the underlying collateral has been identified. These transactions are referred to as other forward agency MBS contracts. TBAs and other forward agency MBS contracts are accounted for as derivatives by the Company under ASC 815. not In addition to TBAs and other forward agency MBS contracts as part of the Company's broker-dealer operations, the Company may not not Derivatives involve varying degrees of off-balance sheet risk, whereby changes in the level or volatility of interest rates or market values of the underlying financial instruments may The Company may, Foreign Currency Forward Contracts The Company invests in foreign currency denominated investments that expose it to fluctuations in foreign currency rates, and, therefore, the Company may, June 30, 2020 December 31, 2019 no TBAs and Other Forward Agency MBS Contracts The Company enters into TBAs and other forward agency MBS transactions for three (i) The Company trades U.S. government agency obligations. In connection with these activities, the Company may may (ii) The Company also enters into TBAs and other forward agency MBS contracts in order to assist clients (generally small to mid-size mortgage loan originators) in hedging the interest rate risk associated with the mortgages owned by these clients. (iii) Finally, the Company may The Company carries the TBAs and other forward agency MBS contracts at fair value and includes them as a component of investments-trading or trading securities sold, not June 30, 2020 $1,487,750 $1,572,100 December 31, 2019 $1,773,000 $1,874,194. Other Extended Settlement Trades When the Company buys or sells a financial instrument that will not June 30, 2020 $1,697 $9,000 December 31, 2019 $1,526 $0. The following table presents the Company's derivative financial instruments and the amount and location of the fair value (unrealized gain / (loss)) recognized in the consolidated balance sheets as of June 30, 2020 December 31, 2019 DERIVATIVE FINANCIAL INSTRUMENTS-BALANCE SHEET INFORMATION (Dollars in Thousands) Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Balance Sheet Classification June 30, 2020 December 31, 2019 TBAs and other forward agency MBS Investments-trading $ 11,298 $ 3,686 Other extended settlement trades Investments-trading 7 - Foreign currency forward contracts Other investments, at fair value - - TBAs and other forward agency MBS Trading securities sold, not yet purchased (10,198 ) (3,017 ) Other extended settlement trades Trading securities sold, not yet purchased (20 ) - $ 1,087 $ 669 The following tables present the Company's derivative financial instruments and the amount and location of the net gain (loss) recognized in the consolidated statements of operations. DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION (Dollars in Thousands) Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Income Statement Classification Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Foreign currency forward contracts Revenue-principal transactions and other income $ - $ 43 Other extended settlement trades Revenue-net trading (13 ) (72 ) TBAs and other forward agency MBS Revenue-net trading 1,175 1,948 $ 1,162 $ 1,919 Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Income Statement Classification Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Foreign currency forward contracts Revenue-principal transactions and other income $ - $ 3 Other extended settlement trades Revenue-net trading (14 ) (48 ) TBAs and other forward agency MBS Revenue-net trading 1,388 1,187 $ 1,374 $ 1,142 |
Note 10 - Collateralized Securi
Note 10 - Collateralized Securities Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | 10. Matched Book Repo Business The Company enters into repos and reverse repos as part of its matched book repo business. In general, the Company will lend money to a counterparty after obtaining collateral securities from that counterparty pursuant to a reverse repo. The Company will borrow money from another counterparty using the same collateral securities pursuant to a repo. The Company seeks to earn net interest income on these transactions. Currently, the Company categorizes its matched book repo business into two Gestation Repo Gestation repo involves entering into repo and reverse repo where the underlying collateral security represents a pool of newly issued mortgage loans. The borrowers (the reverse repo counterparties) are generally mortgage originators. The lenders (the repo counterparties) are a diverse group of the counterparties comprised of banks, insurance companies, and other financial institutions. The Company self-clears its gestation repo transactions. GCF Repo In October 2017, November 2017. $25,000, April 25, 2018. 17. Other Repo Transactions In addition to the Company's matched book repo business, the Company may may no not Repo Information At June 30, 2020 December 31, 2019 $5,504,667 $7,500,002, $5,668,109 $7,769,693, June 30, 2020 December 31, 2019 37 41 At June 30, 2020 December 31, 2019 $5,524,758 $7,534,443, $5,355,394 $7,561,978, Intraday and Overnight Lending Facility In conjunction with the Company's GCF repo business, on October 19, 2018, June 30, 2020 $75,000. October 16, 2020. 364 . The BONY lending facility is structured so that advances are generally repaid before the end of each business day. However, if an advance is not 0.12%. 3% 0.50% six June 30, 2020 no December 31, 2019 $32,818 $2, $32,820, December 31, 2019 January 2020. Concentration In the matched book repo business, the demand for borrowed funds is generated by the reverse repo counterparty and the supply of funds is provided by the repo counterparty. On the demand side, the Company does not may not may The gestation repo business has been and continues to be concentrated as to reverse repurchase counterparties. The Company conducts this business with a limited number of reverse repo counterparties. As of June 30, 2020 December 31, 2019 nine seven The total net revenue earned by the Company on its matched book repo business (both gestation repo and GCF repo) was $7,927 $14,795 three six June 30, 2020 $2,343 $3,636 three six June 30, 2019 Detail Effective June 1, 2019, 210 June 1, 2019, June 1, 2019) As of June 30, 2020 $5,504,667 $5,524,758 $1,118,530 $3,357,445, As of December 31, 2019 $7,500,002 $7,534,443. $371,025 $5,138,712, The following tables summarize the remaining contractual maturity of the gross obligations under repos accounted for as secured borrowings segregated by the underlying collateral pledged as of each date shown. All amounts as well as counterparty cash collateral (see note 14 SECURED BORROWINGS (Dollars in Thousands) June 30, 2020 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 2,956,935 $ 440,170 $ 400,758 $ - $ 3,797,863 MBS (gestation repo) 93,588 1,618,980 - - 1,712,568 SBA loans 14,327 - - - 14,327 $ 3,064,850 $ 2,059,150 $ 400,758 $ - $ 5,524,758 Reverse Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 431,749 $ 2,248,375 $ 384,832 $ 726,564 $ 3,791,520 MBS (gestation repo) 93,776 1,619,371 - - 1,713,147 $ 525,525 $ 3,867,746 $ 384,832 $ 726,564 $ 5,504,667 SECURED BORROWINGS (Dollars in Thousands) December 31, 2019 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 5,117,811 $ 1,546,510 $ - $ - $ 6,664,321 MBS (gestation repo) - 742,035 100,403 - 842,438 SBA loans 27,684 - - - 27,684 $ 5,145,495 $ 2,288,545 $ 100,403 $ - $ 7,534,443 Reverse Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 1,231,027 $ 2,525,188 $ 2,319,079 $ 575,058 $ 6,650,352 MBS (gestation repo) - 747,692 101,958 - 849,650 $ 1,231,027 $ 3,272,880 $ 2,421,037 $ 575,058 $ 7,500,002 |
Note 11 - Investments in Equity
Note 11 - Investments in Equity Method Affiliates | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 11. Equity method accounting requires that the Company record its investments in equity method affiliates on the consolidated balance sheets and recognize its share of the equity method affiliates' net income as earnings each reporting period. The Company has certain equity method affiliates for which it has elected the fair value option. Those investees are excluded from the table below. Those investees are included as a component of other investments, at fair value in the consolidated balance sheets. All gains and losses (unrealized and realized) from securities classified as other investments, at fair value in the consolidated balance sheets are recorded as a component of principal transactions and other income in the consolidated statement of operations. See note 24. The following table summarizes the activity and earnings in the Company's investment that is accounted for under the equity method. INVESTMENTS IN EQUITY METHOD AFFILIATES (Dollars in Thousands) Insurance SPAC AOI CK Capital Total January 1, 2020 $ 3,222 $ 559 $ 18 $ 3,799 Investments / advances - 2,097 - 2,097 Distributions / repayments - - - - Earnings / (loss) realized (1,640 ) 58 242 (1,340 ) June 30, 2020 $ 1,582 $ 2,714 $ 260 $ 4,556 |
Note 12 - Goodwill
Note 12 - Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 12. Goodwill consisted of the following. GOODWILL (Dollars in Thousands) June 30, 2020 December 31, 2019 AFN $ 109 $ 109 JVB - 7,883 Goodwill $ 109 $ 7,992 The Company measures its goodwill impairment on an annual basis or when events indicate that goodwill may October 1 January 1 In the first 2020, 19 4. no The Company performed a valuation of JVB as of June 30, 2020 350, $7,883 six June 30, 2020 |
Note 13 - Leases
Note 13 - Leases | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 13. The Company leases office space and certain computer and related equipment under noncancelable operating leases. The Company determines if an arrangement is a lease at the inception date of the contract. The Company measures operating lease liabilities using an estimated incremental borrowing rate as there is no The Company adopted the provisions of ASC 842 January 1, 2019. not January 1, 2019. $8,416, $8,860, $20, $18, $406. Rent expense is recognized on a straight-line basis over the lease term and is in included business development, occupancy, and equipment expense. As of June 30, 2020 8.1 5.38% Maturities of operating lease liability payments consisted of the following. FUTURE MATURITY OF LEASE LIABILITIES (Dollars in Thousands) As of June 30, 2020 2020 - remaining $ 764 2021 1,108 2022 933 2023 950 2024 983 Thereafter 4,094 Total 8,832 Less imputed interest (1,741 ) Lease obligation $ 7,091 During the six June 30, 2020 2019 $800 $709, No three six June 30, 2020 $77 $156, $385 $763, three six June 30, 2019 $65 $130, $397 $787, |
Note 14 - Other Receivables, Ot
Note 14 - Other Receivables, Other Assets, Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Other Receivables, Other Assets, Accounts Payable and Other Liabilities [Table Text Block] | 14. Other receivables consisted of the following. OTHER RECEIVABLES (Dollars in Thousands) June 30, 2020 December 31, 2019 Cash collateral due from counterparties $ 664 $ 41,172 Asset management fees receivable 1,049 1,159 Accrued interest receivable and dividend receivable 2,316 3,549 Revenue share receivable 70 150 Other receivables 624 595 Other receivables $ 4,723 $ 46,625 When the Company enters into a reverse repo, it obtains collateral in excess of the principal amount of the reverse repo. The Company accepts collateral in the form of liquid securities or cash. If the value of the securities the Company receives as collateral increases, the Company's reverse repo counterparties may When the Company enters into repo transactions, the Company provides collateral to the Company's repo counterparties in excess of the principal balance of the repo. The Company's counterparties accept collateral in the form of liquid securities or cash. To the extent the Company provides the collateral in cash, the Company includes it as a component of other receivables (see above). Asset management fees receivable are of a routine and short-term nature. These amounts are generally accrued monthly and paid on a monthly or quarterly basis. Accrued interest and dividends receivable represent interest and dividends accrued on the Company's investment securities included as a component of investments-trading or other investments, at fair value. Interest payable on securities sold, not Other assets consisted of the following. OTHER ASSETS (Dollars in Thousands) June 30, 2020 December 31, 2019 Deferred costs $ 183 $ 301 Prepaid expenses 1,072 796 Prepaid income taxes 58 Deposits 401 656 Miscellaneous other assets 275 275 Residential transition loans - 5,323 Furniture, equipment, and leasehold improvements, net 868 916 Intangible assets 166 166 Other assets $ 3,023 $ 8,433 Deferred costs and prepaid expenses represent amounts paid for services that are being amortized over their expected period of use and benefit. They are all routine and short-term in nature. Deposits are amounts held by landlords or other parties which will be returned or offset upon satisfaction of a lease or other contractual arrangement. During 2019, January 1, 2020, 326, 16 10 December 31, 2019 Accounts payable and other liabilities consisted of the following. ACCOUNTS PAYABLE AND OTHER LIABILITIES (Dollars in Thousands) June 30, 2020 December 31, 2019 Accounts payable $ 340 $ 362 Redeemable financial instruments accrued interest 1,011 403 Accrued interest payable 742 711 Accrued interest on securities sold, not yet purchased 632 914 Payroll taxes payable 706 729 Counterparty cash collateral 218,731 9,524 Accrued expense and other liabilities 4,860 7,652 Accounts payable and other liabilities $ 227,022 $ 20,295 The redeemable financial instrument accrued interest represents accrued interest on the JKD Capital Partners I LTD and the DGC Trust/CBF redeemable financial instruments. See note 16. When the Company enters into a reverse repo, the Company obtains collateral in excess of the principal of the reverse repo. The Company accepts collateral in the form of liquid securities or cash. To the extent the Company receives cash collateral, the Company includes it as a component of other liabilities (counterparty cash collateral) in the table above. When the Company enters into repo transactions, the Company provides collateral to the Company's repo counterparty in excess of the principal balance of the repo. If the value of the securities the Company provides as collateral increases, the Company may 10. |
Note 15 - Variable Interest Ent
Note 15 - Variable Interest Entities | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Variable Interest Entity Disclosure [Text Block] | 15. As a general matter, a reporting entity must consolidate a variable interest entity (“VIE”) when it is deemed to be the primary beneficiary. The primary beneficiary is the entity that has both (a) the power to direct the matters that most significantly impact the VIE's financial performance and (b) a significant variable interest in the VIE. The Company's Principal Investing Portfolio Included in other investments, at fair value in the consolidated balance sheets are investments in several VIEs. In each case, the Company determined it was not June 30, 2020 $817 not three six June 30, 2020 2019 no June 30, 2020 December 31, 2019 For each investment management contract entered into by the Company, the Company assesses whether the entity being managed is a VIE and if the Company is the primary beneficiary. Certain of the Investment Vehicles managed by the Company are VIEs. Under the current guidance of ASU 2015 12, not no not The Company's Trading Portfolio From time to time, the Company may not not not two not The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets related to the Company's variable interests in identified VIEs with the exception of (i) the two 17 not June 30, 2020 December 31, 2019 CARRYING VALUE OF VARIABLE INTERESTS IN NON-CONSOLIDATED VARIABLE INTEREST ENTITIES (Dollars in Thousands) As of June 30, 2020 As of December 31, 2019 Other Investments, at fair value $ 2,066 $ 5,413 Maximum exposure $ 2,066 $ 5,413 |
Note 16 - Redeemable Financial
Note 16 - Redeemable Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 16. Redeemable financial instruments consisted of the following. REDEEMABLE FINANCIAL INSTRUMENTS (Dollars in Thousands) As of June 30, 2020 As of December 31, 2019 JKD Capital Partners I LTD $ 7,957 $ 7,957 DGC Trust / CBF 8,500 8,500 ViaNova Capital Group, LLC 421 526 $ 16,878 $ 16,983 JKD Capital Partners I LTD Amendment On October 3, 2016, $12,000 $6,000 $1,000 January 2017, $1,268 January 9, 2019. In exchange for the JKD Investment, the Operating LLC agreed to pay to JKD Investor during the term of the JKD Investment Agreement an amount (“JKD Investment Return”) equal to 50% October 3, 2016 On March 6, 2019, (a) during the fourth 2018, 42% (b) commencing on January 1, 2019 The JKD Investor may 90 60 may 60 Upon a termination of the JKD Investment Agreement, as amended, the Operating LLC will pay to the JKD Investor an amount equal to the “Investment Balance” (as such term is defined in the JKD Investment Agreement, as amended) as of the day prior to such termination. At any time following October 3, 2019, may, two If the Operating LLC or JVB sells JVB's Institutional Corporate Trading Business to any unaffiliated third not 25% DGC Trust/ CBF Amendments Prior to September 30, 2019, two one $8,000 one $2,000 The CBF Investment Agreement and the DGC Trust Investment Agreement were both amended on September 25, 2019, December 4, 2019, October 1, 2019. (a) The term “Investment Amount” under the CBF Investment Agreement was reduced from $8,000 $6,500 one $1,500 (b) The term “Investment Return” under the CBF Investment Agreement was amended to mean an annual return equal to: ● for the Annual Period ending on September 29, 2020, 3.75% x 11.47% zero $11,777 7.65% $11,777. second twelve September 29, 2020 3.75% x 11.47% zero $5,333, $612 $5,333 $8,000, 7.65% $8,000, ● for any Annual Period following September 29, 2020, ( x 20% 15.29% zero 3.75% (c) The term “Investment Return” under the DGC Trust Investment Agreement was amended to mean an annual return equal to: ● for the twelve September 29, 2020, 3.75% x 3.53% zero $11,177 2.35% $11,177. second 3.75% x 3.53% zero $5,333 $188 $5,333, $8,000, 2.35% $8,000 ● for any Annual Period following September 29, 2020, ( x 20% 4.71% zero 3.75% Except as set forth above, the other material terms and conditions of the CBF Investment Agreement and the DGC Trust Investment Agreement remained substantially unchanged by the amendment. The payment of $1,500 October 2019, $2,000 September 30, 2020. ViaNova Capital Group LLC On November 16, 2018, November 19, 2018, $500, $250, $500, $2,750, February 2019, $220 $250 $30 Pursuant to the ViaNova Investment Agreement, in consideration of the ViaNova Investment, once the Operating LLC is repaid $693 During the first 2020, 4. |
Note 17 - Debt
Note 17 - Debt | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 17. The Company had the following debt outstanding. DETAIL OF DEBT (Dollars in Thousands) As of As of Interest Description June 30, 2020 December 31, 2019 Rate Terms Interest (4) Maturity Non-convertible debt: 12.00% senior note (the "2020 Senior Note") $ 4,500 $ - Fixed 12.00 % January 2022 12.00% senior note (the "2019 Senior Note") 2,400 6,786 Fixed 12.00 % September 2020 (1) PPP Loan 2,166 - Fixed 1.00 % May 2022 Contingent convertible debt: 8.00% convertible senior note (the "2017 Convertible Note") 15,000 15,000 Fixed 8.00 % March 2022 (2) Less unamortized debt issuance costs (557 ) (703 ) 14,443 14,297 Junior subordinated notes (3): Alesco Capital Trust I 28,125 28,125 Variable 4.76 % July 2037 Sunset Financial Statutory Trust I 20,000 20,000 Variable 5.52 % March 2035 Less unamortized discount (24,925 ) (25,124 ) 23,200 23,001 FT Financial Bank, N.A. Credit Facility 17,500 - Variable N/A April 2021 LegacyTexas Credit Facility - 4,777 Variable N/A NA Total $ 64,209 $ 48,861 ( 1 On September 25, 2019, 2013 September 25, 2019. 2013 September 25, 2019 September 25, 2020; 2013 8% 9% 12% 13% “2019 “2013 ( 2 The holder of the 2017 may $1.45 not may, $0.01 ten one 2017 $14.50. 20 10 December 31, 2019 ( 3 The junior subordinated notes listed represent debt the Company owes to the two $49,614. $1,489. $49,614 not $0. June 30, 2020 14.31% ( 4 Represents the interest rate in effect as of the last day of the reporting period. The 2020 On January 31, 2020, Pursuant to the note purchase agreement, JKD Investor and RNCS each purchased a senior promissory note in the principal amount of $2,250 $4,500 12% January 31, 2022. February 3, 2020, September 25, 2019, $4,386 2019 December 31, 2019 February 3, 2020. $2,400 2019 The 2019 On September 25, 2019, 2013 September 25, 2019. 2013 September 25, 2019 September 25, 2020; 2013 8% 9% 12% 13% “2019 “2013 PPP Loan On May 1, 2020 1.0% first six two may Under the terms of the CARES Act, PPP Loan recipients can apply for and be granted forgiveness for all or a portion of the PPP Loan, with such forgiveness to be determined, subject to limitations, based on the use of the PPP Loan proceeds for payment of payroll costs and payments of mortgage interest, rent, and utilities. The terms of any forgiveness may may In order to obtain forgiveness of the PPP Loan, the Company must submit a request and provide satisfactory documentation regarding its compliance with applicable requirements. While the Company currently believes that its use of the PPP Loan proceeds will meet the conditions for forgiveness under the PPP, no The PPP Loan contains customary events of default relating to, among other things, payment defaults and breaches of representations, warranties or covenants. The occurrence of an event of default may LegacyTexas Bank On November 20, 2018, November 16, 2018, May 4, 2019 September 25, 2019. On March 19, 2020, March 19, 2020, March 19, 2020 not 4. See note 20 10 December 31, 2019 FT Bank Credit Facility The credit facility with FT Bank has a total borrowing capacity of $25,000. “2019 $17,500 “2018 $7,500. April 10, 2021. 2019 not April 10, 2020. March 2020, $17,500 2019 $17,500 not 2019 20 2019 10 2019 2018 Interest Expense, net INTEREST EXPENSE (Dollars in Thousands) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Junior subordinated notes $ 751 $ 885 $ 1,572 $ 1,764 2020 Senior Notes 134 - 223 - 2017 Convertible Note 374 366 745 726 2013 Convertible Notes / 2019 Senior Notes 72 135 191 269 2018 FT LOC/2019 FT Revolver 362 90 514 182 Redeemable Financial Instrument - DGC Trust / CBF 457 261 1,147 409 Redeemable Financial Instrument - JKD Capital Partners I LTD 960 243 1,400 521 Redeemable Financial Instrument - ViaNova Capital Group, LLC (29 ) (41 ) (106 ) (78 ) $ 3,081 $ 1,939 $ 5,686 $ 3,793 Because the LegacyTexas Credit Facility was used to directly finance the purchase of securities and loans, the interest expense incurred on the Legacy Texas Credit Facility is included as a component of net trading revenue. See note 5. |
Note 18 - Equity
Note 18 - Equity | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 18. Stockholders' Equity Common Equity six June 30, 2020 Common Stock Shares December 31, 2019 1,119,909 Vesting of shares 55,278 Shares withheld for employee taxes and retired (15,043 ) June 30, 2020 1,160,144 Series E Voting Non-Convertible Preferred Stock no ten one 4,983,557 June 30, 2020 21 10 December 31, 2019 Series F Voting Non-Convertible Preferred Stock December 23, 2019, 25,000,000 $0.001 December 30, 2019, 12,549,273 9,880,268 not one ten December 31, 2019 22,429,541 . See Non-Controlling Interest/ - Securities Purchase Agreement – Purchase of IMXI shares below. 21 10 December 31, 2019 Stockholder Rights Plan On August 3, 2016, 382 “2016 2016 2016 December 31, 2019 On March 10, 2020, 382 one March 20, 2020 ( one ten $0.001 $100.00 Initially, the Rights will be attached to all Common Stock certificates representing shares then outstanding or, in the case of uncertificated shares of Common Stock registered in book entry form (“Book Entry Shares”) by notation in book entry (which certificates for Common Stock and Book Entry Shares shall be deemed also to be certificates for Rights), and no Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and a “Distribution Date” will occur upon the earlier of (i) 10 10 4.95% not Pursuant to the Rights Agreement, an “Exempted Person” is any person or entity who, together with all affiliates and associates of such person or entity, was or could become, as of March 10, 2020, 4.95% March 10, 2020. no 4.95% x March 10, 2020, 4.95% no 4.95% x became the beneficial owner of 4.95% In addition, the Rights Agreement defines the term “Exempted Person” to also include any person or entity who, together with all affiliates and associates of such person or entity, is the beneficial owner of Common Stock and/or other securities exercisable for shares of Common Stock representing 4.95% not, x 4.95% Pursuant to the Rights Agreement, a purchaser, assignee or transferee of the shares of Common Stock (or options or warrants exercisable for Common Stock) from an Exempted Person will not 4.95% The Rights are not December 31, 2023, ( 382 no may not no Except as otherwise determined by the Company's board of directors, only shares of Common Stock issued prior to the Distribution Date will be issued with Rights. Pursuant to the Rights Agreement, in the event that a person or entity becomes an Acquiring Person, each other holder of a Right will thereafter have the right to receive, upon exercise, Common Stock (or, in certain circumstances, cash, property or other securities of the Company), having a value equal to two one $100.00 not $200.00 $100.00. $20.00, ten 10 $100.00. Notwithstanding any of the foregoing, following the occurrence of a person or entity becoming an Acquiring Person (the “Flip-In Event”), all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by such Acquiring Person will be null and void. In the event that, at any time following the Stock Acquisition Date, (i) the Company engages in a merger or other business combination transaction in which the Company is not 50% two However, Rights are not no The Purchase Price payable, and the number of Units of Series C Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Series C Preferred Stock, (ii) if holders of the Series C Preferred Stock are granted certain rights or warrants to subscribe for Series C Preferred Stock or convertible securities at less than the current market price of the Series C Preferred Stock, or (iii) upon the distribution to holders of the Series C Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those referred to above). With certain exceptions, no 1% No At any time after the Stock Acquisition Date, the Company may may 50% one At any time until ten may not $0.001 $0.001 Until a Right is exercised, the holder thereof, as such, will have no not may, Acquisition and Surrender of Additional Units of the Operating LLC, net January 1, 2011, 1:10 During the six June 30, 2020 Operating LLC Membership Units Units related to UIS Agreement 402,350 Total 402,350 The Company recognized a net decrease in additional paid in capital of $123 $8 $115 six June 30, 2020 2019 Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Net income / (loss) attributable to Cohen & Company Inc. $ (2,201 ) $ (1,612 ) Transfers (to) from the non-controlling interest: Increase / (decrease) in Cohen & Company, Inc. paid in capital for the acquisition / (surrender) of additional units in consolidated subsidiary, net (123 ) 133 Changes from net income / (loss) attributable to Cohen & Company Inc. and transfers (to) from the non-controlling interest $ (2,324 ) $ (1,479 ) Repurchases of Shares and Retirement of Treasury Stock On March 19, 2018, “10b 5 10b 5 March 19, 2018 March 19, 2019 not 10b5 1 $2,000 10b5 1 may 10b 18 10b5 1 10b5 1 During the six June 30, 2019 7,890 10b5 1 $65. All of the repurchases noted above were completed using cash on hand. The Company currently has no 10b5 1 Non-Controlling Interest Securities Purchase Agreement – Purchase of IMXI shares On December 30, 2019 ( 22,429,541 22,429,541 In consideration for the issuance of the LLC Units and Series F Preferred Stock, Daniel G. Cohen transferred to the Operating LLC 370,881 $0.00001 291,480 662,361, 264,021 $15.00 20 30 January 19, 2017 ( 264,023 $17.00 20 30 The Company engaged a third 662,361 $4,351 $3,428. $7,779 The IMXI Common Stock is listed on The Nasdaq Capital Market (“Nasdaq”) under the trading symbol “IMXI.” Prior to the merger of IMXI with and into a special purpose acquisition company in a transaction that resulted in the listing of IMXI on Nasdaq, Mr. Cohen served as the chief executive officer and member of the board of directors of the special purpose acquisition company. The SPA contains customary representations and warranties on the part of each of the Operating LLC, the Company, Daniel G. Cohen, and the DGC Trust. The Operating LLC, the Company, Daniel G. Cohen, and the DGC Trust provide customary indemnifications thereunder. Pursuant to the Amended and Restated Limited Liability Company Agreement of the Operating LLC, dated as of December 16, 2009, may one ten However, pursuant to the SPA, Daniel G. Cohen and the DGC Trust agreed that, until the Company's stockholders approve the Stockholder Proposal (as defined below), they will not 19.99% Pursuant to the SPA, Daniel G. Cohen and the DGC Trust also agreed to not 382 1986, Pursuant to the SPA, at the 2020 713 may not 2020 In addition, effective as of the SPA Effective Date, if the Company owns a number of units of membership interests in the Operating LLC representing less than a majority of the votes entitled to be cast at any meeting or any other circumstances upon which a vote, agreement, consent (including unanimous written consents) or other approval is sought from the holders of units of membership interests in the Operating LLC (each, a “Meeting”), then for so long as the Company owns a number of units of membership interests in the Operating LLC representing less than a majority of the votes entitled to be cast at any Meeting, Daniel G. Cohen and the DGC Trust have agreed to grant a voting proxy to the Company pursuant to which the Company may 24. |
Note 19 - Net Capital Requireme
Note 19 - Net Capital Requirements | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Net Capital Under Securities and Exchange Commission Regulation Disclosure [Text Block] | 19 . NET CAPITAL REQUIREMENTS JVB is subject to the net capital provision of Rule 15c3 1 As of June 30, 2020 $67,830 $67,222 CCFEL, a subsidiary of the Company regulated by the Central Bank of Ireland (“CBI”), is subject to certain regulatory capital requirements in accordance with the Capital Requirements Regulation 575/2013 June 30, 2020 $ 647 $ 1,419 $ 772 CCFL, a subsidiary of the Company and an entity regulated by the FCA, is subject to the net liquid capital provision of the Financial Services and Markets Act 2000, 2.140R 2.1.57R, June 30, 2020 $ 170 $ 625 $ 455 |
Note 20 - Earnings (Loss) Per C
Note 20 - Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 20 . EARNINGS / (LOSS) PER COMMON SHARE The following table presents a reconciliation of basic and diluted earnings / (loss) per common share for the periods indicated. EARNINGS / (LOSS) PER COMMON SHARE (Dollars in Thousands, except share or per share information) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income / (loss) attributable to Cohen & Company Inc. $ 901 $ (410 ) $ (2,201 ) $ (1,612 ) Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership (1) 3,107 (491 ) (5,416 ) (1,109 ) Add: Interest expense incurred on dilutive convertible notes 373 - - Add / (deduct): Adjustment (2) (930 ) 298 29 351 Net income / (loss) on a fully converted basis $ 3,451 $ (603 ) $ (7,588 ) $ (2,370 ) Weighted average common shares outstanding - Basic 1,160,144 1,143,909 1,153,512 1,138,538 Unrestricted Operating LLC membership units exchangeable into Cohen & Company, Inc. shares (1) 2,802,864 532,409 2,798,331 532,409 Restricted units or shares 22,962 - - - Shares issuable upon conversion of dilutive convertible notes 1,034,483 - - - Weighted average common shares outstanding - Diluted (3) 5,020,453 1,676,318 3,951,843 1,670,947 Net income / (loss) per common share - Basic $ 0.78 $ (0.36 ) $ (1.91 ) $ (1.42 ) Net income / (loss) per common share - Diluted $ 0.69 $ (0.36 ) $ (1.92 ) $ (1.42 ) ( 1 The Operating LLC units of membership interest not may ten one not ten one tenth not not ( 2 An adjustment is included because the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable, if the Operating LLC units of membership interests had been converted at the beginning of the period. ( 3 Potentially diluted securities that were not Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 2019 2020 2019 2017 Convertible Note - 1,034,483 1,034,483 1,034,483 2013 Convertible Notes - 565,469 - 565,469 Restricted Common Stock - - 21,810 22,008 Restricted Operating LLC units - - 12,616 7,503 - 1,599,952 1,068,909 1,629,463 |
Note 21 - Commitments and Conti
Note 21 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 21. Legal and Regulatory Proceedings The Company's U.S. broker-dealer subsidiary, J.V.B. Financial Group, LLC is a party to litigation commenced on August 7, 2019, VA Management, LP v. Odeon Capital Group LLC; Janney Montgomery Scott LLC; C&Co/PrinceRidge LLC; and JVB Financial Group LLC third $1 October 16, 2019. November 15, 2019 November 26, 2019. April 29, 2020, one July 14, 2020. May 20, 2020, not July 10, 2020. In addition to the matter set forth above, the Company is a party to various routine legal proceedings and regulatory inquiries arising out of the ordinary course of the Company's business. Management believes that the results of these routine legal proceedings and regulatory matters will not |
Note 22 - Segment and Geographi
Note 22 - Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 22. Segment Information The Company operates within three 1. (a) Revenues and expenses directly associated with each business segment are included in determining net income / (loss) by segment, and (b) Indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not not Accordingly, the Company presents segment information consistent with internal management reporting. See note ( 1 SEGMENT INFORMATION Statement of Operations Information Six Months Ended June 30, 2020 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Net trading $ 38,567 $ - $ - $ 38,567 $ - $ 38,567 Asset management - 3,307 - 3,307 - 3,307 Principal transactions and other income 6 215 (206 ) 15 - 15 Total revenues 38,573 3,522 (206 ) 41,889 - 41,889 Salaries/Wages 20,960 2,211 - 23,171 2,287 25,458 Other Operating Expense 6,235 1,071 102 7,408 2,659 10,067 Impairment of goodwill 7,883 - - 7,883 - 7,883 Total operating expenses 35,078 3,282 102 38,462 4,946 43,408 Operating income (loss) 3,495 240 (308 ) 3,427 (4,946 ) (1,519 ) Interest income (expense) (409 ) - - (409 ) (5,277 ) (5,686 ) Income (loss) from equity method affiliates - 300 (1,640 ) (1,340 ) - (1,340 ) Income (loss) before income taxes 3,086 540 (1,948 ) 1,678 (10,223 ) (8,545 ) Income tax expense (benefit) - - - - (29 ) (29 ) Net income (loss) 3,086 540 (1,948 ) 1,678 (10,194 ) (8,516 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (6,315 ) (6,315 ) Net income (loss) attributable to Cohen & Company Inc. $ 3,086 $ 540 $ (1,948 ) $ 1,678 $ (3,879 ) $ (2,201 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 9 $ 1 $ - $ 10 $ 154 $ 164 SEGMENT INFORMATION Statement of Operations Information Six Months Ended June 30, 2019 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Net trading $ 17,394 $ - $ - $ 17,394 $ - $ 17,394 Asset management - 3,747 - 3,747 - 3,747 Principal transactions and other income 2 222 944 1,168 - 1,168 Total revenues 17,396 3,969 944 22,309 - 22,309 Salaries/Wages 9,174 2,054 - 11,228 1,568 12,796 Other Operating Expense 5,502 1,228 200 6,930 2,133 9,063 Impairment of goodwill - - - - - - Total operating expenses 14,676 3,282 200 18,158 3,701 21,859 Operating income (loss) 2,720 687 744 4,151 (3,701 ) 450 Interest (expense) income (105 ) - - (105 ) (3,688 ) (3,793 ) Income (loss) from equity method affiliates - - (256 ) (256 ) - (256 ) Income (loss) before income taxes 2,615 687 488 3,790 (7,389 ) (3,599 ) Income tax expense (benefit) - - - - (747 ) (747 ) Net income (loss) 2,615 687 488 3,790 (6,642 ) (2,852 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (1,240 ) (1,240 ) Net income (loss) attributable to Cohen & Company Inc. $ 2,615 $ 687 $ 488 $ 3,790 $ (5,402 ) $ (1,612 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 9 $ 1 $ - $ 10 $ 149 $ 159 ( 1 Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not 1 2 3 not SEGMENT INFORMATION Statement of Operations Information Three Months Ended June 30, 2020 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1 ) Total Net trading $ 20,006 $ - $ - $ 20,006 $ - $ 20,006 Asset management - 1,692 - 1,692 - 1,692 Principal transactions and other income (2 ) 98 2,325 2,421 - 2,421 Total revenues 20,004 1,790 2,325 24,119 - 24,119 Salaries/Wages 9,050 1,094 - 10,144 1,180 11,324 Other Operating Expense 2,959 594 52 3,605 1,264 4,869 Impairment of goodwill - - - - - - Total operating expenses 12,009 1,688 52 13,749 2,444 16,193 Operating income (loss) 7,995 102 2,273 10,370 (2,444 ) 7,926 Interest income (expense) (333 ) - - (333 ) (2,748 ) (3,081 ) Income (loss) from equity method affiliates - 101 (1,334 ) (1,233 ) - (1,233 ) Income (loss) before income taxes 7,662 203 939 8,804 (5,192 ) 3,612 Income tax expense (benefit) - - - - 343 343 Net income (loss) 7,662 203 939 8,804 (5,535 ) 3,269 Less: Net income (loss) attributable to the non-controlling interest - - - - 2,368 2,368 Net income (loss) attributable to Cohen & Company Inc. $ 7,662 $ 203 $ 939 $ 8,804 $ (7,903 ) $ 901 Other statement of operations data Depreciation and amortization (included in total operating expense) $ 5 $ 1 $ - $ 6 $ 78 $ 84 SEGMENT INFORMATION Statement of Operations Information Three Months Ended June 30, 2019 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1 ) Total Net trading $ 8,670 $ - $ - $ 8,670 $ - $ 8,670 Asset management - 1,745 - 1,745 - 1,745 Principal transactions and other income 1 125 628 754 - 754 Total revenues 8,671 1,870 628 11,169 - 11,169 Salaries/Wages 4,626 932 - 5,558 874 6,432 Other Operating Expense 2,590 537 100 3,227 992 4,219 Impairment of goodwill - - - - - - Total operating expenses 7,216 1,469 100 8,785 1,866 10,651 Operating income (loss) 1,455 401 528 2,384 (1,866 ) 518 Interest (expense) income (49 ) - - (49 ) (1,890 ) (1,939 ) Income (loss) from equity method affiliates - - (248 ) (248 ) - (248 ) Income (loss) before income taxes 1,406 401 280 2,087 (3,756 ) (1,669 ) Income tax expense (benefit) - - - - (641 ) (641 ) Net income (loss) 1,406 401 280 2,087 (3,115 ) (1,028 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (618 ) (618 ) Net income (loss) attributable to Cohen & Company Inc. $ 1,406 $ 401 $ 280 $ 2,087 $ (2,497 ) $ (410 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 4 $ - $ - $ 4 $ 74 $ 78 BALANCE SHEET DATA As of June 30, 2020 (Dollars in Thousands) Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Total Assets $ 6,048,602 $ 1,470 $ 14,275 $ 6,064,347 $ 12,335 $ 6,076,682 Included within total assets: Investments in equity method affiliates $ - $ - $ 4,556 $ 4,556 $ - $ 4,556 Goodwill (2) $ 54 $ 55 $ - $ 109 $ - $ 109 Intangible assets (2) $ 166 $ - $ - $ 166 $ - $ 166 BALANCE SHEET DATA December 31, 2019 (Dollars in Thousands) Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Total Assets $ 7,968,491 $ 1,616 $ 18,689 $ 7,988,796 $ 12,828 $ 8,001,624 Included within total assets: Investments in equity method affiliates $ - $ - $ 3,799 $ 3,799 $ - $ 3,799 Goodwill (2) $ 7,937 $ 55 $ - $ 7,992 $ - $ 7,992 Intangible assets (2) $ 166 $ - $ - $ 166 $ - $ 166 ( 1 Unallocated assets primarily include: ( 1 2 3 not ( 2 Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table above. Geographic Information The Company conducts its business activities through offices in the following locations: ( 1 2 GEOGRAPHIC DATA (Dollars in Thousands) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Revenues: United States $ 23,372 $ 10,309 $ 40,357 $ 20,393 Europe & Other 747 860 1,532 1,916 Total $ 24,119 $ 11,169 $ 41,889 $ 22,309 Long-lived assets attributable to an individual country, other than the United States, are not |
Note 23 - Supplemental Cash Flo
Note 23 - Supplemental Cash Flow Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 23 . SUPPLEMENTAL CASH FLOW DISCLOSURE Interest paid by the Company on its debt and redeemable financial instruments was $ 4,753 $3,525 six June 30, 2020 2019 The Company paid income taxes of $ 114 $24 six June 30, 2020 2019 $ 12 $48 six June 30, 2020 2019 For the six June 30, 2020 not ● The Company net surrendered units of membership interests the Operating LLC. The Company recognized a net decrease $ 123 increase $ 8 increase $ 115 18. ● The investment return related to certain of the Company's redeemable financial instruments was negative within certain quarterly periods. According to the terms of those agreements, the redemption value of the instrument is reduced in those cases. Accordingly, the Company recorded interest income and reduced the balance of redeemable financial instruments by $105. 16. For the six June 30, 2019 not ● The Company net surrendered units of membership interests in the Operating LLC. The Company recognized a net increase in additional paid-in capital of $133, $14 $119 17. ● The investment return related to certain of the Company's redeemable financial instruments was negative within certain quarterly periods. According to the terms of those agreements, the redemption value of the instrument is reduced in those cases. Accordingly, the Company recorded interest income and reduced the balance of redeemable financial instruments by $78. ● On January 1, 2019, $8,416 $8,860, $20, $18, $406, 2016 02. 2. As part of the Company's matched book repo operations, the Company enters into reverse repos with counterparties whereby it lends money and receive securities as collateral. In accordance with ASC 860, not two may may not may not 14. As of June 30, 2020 December 31, 2019 $218,731 $9,524, provided by $ 209,225 six June 30, 2020 $209,207 no not |
Note 24 - Related Party Transac
Note 24 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 24 . RELATED PARTY TRANSACTIONS The Company has identified the following related party transactions for the six June 30, 2020 2019 A. The Bancorp, Inc. (“TBBK”) TBBK is identified as a related party because Daniel G. Cohen is chairman of TBBK. As part of the Company's broker-dealer operations, the Company from time to time purchases securities from third may third June 30, 2020 December 31, 2019 no three six June 30, 2020 2019 no B. Daniel G. Cohen/Cohen Bros. Financial, LLC (“CBF”)/ EBC 2013 On December 30, 2019, 370,881 12,549,273 12,549,273 11. In December 2019, 45% $18 $17 10% $1 11. CBF has been identified as a related party because (i) CBF is a non-controlling interest holder of the Company and (ii) CBF is wholly owned by Daniel G. Cohen. On September 29, 2017, $8,000 $10,000 October 2019, $1,500 16 17. EBC has been identified as a related party because Daniel G. Cohen is a trustee of EBC and has sole voting power with respect to all shares of the Company held by EBC. In September 2013, $4,000 $2,400 2013 $1,600 20 10 December 31, 2019 September 25, 2019, 2013 2019 17. C. The Edward E. Cohen IRA On August 28, 2015, $4,386 2013 September 2013 September 25, 2019, 2013 2019 17 2019 2013 2019 February 3, 2020. 17 20 10 December 31, 2019 D. JKD Investor The JKD Investor is an entity owned by Jack J. DiMaio, the vice chairman of the board of directors and vice chairman of the Operating LLC's board of managers, and his spouse. On October 3, 2016, $6,000 January 2017 January 2019 $1,000 $1,268 16. On January 31, 2020, $2,250 2020 17. E. DGC Trust DGC Trust was established by Daniel G. Cohen, chairman of the Company's board of directors and chairman of the Operating LLC board of managers. Daniel G. Cohen does not On December 30, 2019, 291,480 $3,428 9,880,268 9,880,268 18. In March 2017, 2017 2017 On September 29, 2017, $2,000 $10,000 19 10 December 31, 2019 16 F. FinTech Acquisition Corp. III In December 2018, G. FinTech Investor Holdings II, LLC FinTech Investor Holdings II, LLC is considered a related party because Daniel G. Cohen is the manager of the entity. In July 2018, third $2,513. not not H. Duane Morris, LLP (“Duane Morris”) Duane Morris is an international law firm and serves as legal counsel to the Company. Duane Morris is considered a related party because a partner at Duane Morris is a member of the same household as a director of the Company. Expense incurred by the Company for services provided by Duane Morris are included within professional fees and operating expense in the consolidated statements of operations and comprehensive income and are disclosed in the table below. I. FinTech Masala, LLC FinTech Masala, LLC is a related party because Betsy Cohen is the mother of Daniel G. Cohen and is a member of FinTech Masala, LLC. Daniel G. Cohen is also a member of FinTech Masala, LLC. The Company has engaged Betsy Cohen on behalf of FinTech Masala, LLC as a consultant to provide certain services related to the Insurance SPAC. The Company agreed to pay a consultant fee of $1 July 1, 2019 thirty $2 March 2019, August 1, 2018. not 90 J. Investment Vehicle and Other EuroDekania EuroDekania is considered a related party because it is an equity method investment of the Company. The Company had an investment in and a management contract with EuroDekania. Income earned or loss incurred on the investment is included as part of principal transactions and other income in the tables below. Revenue earned on the management contract is included as part of asset management in the tables below. EuroDekania liquidated in 2019. SPAC Fund The SPAC Fund is considered a related party because it is an equity method investment of the Company. The Company has an investment in and a management contract with the SPAC Fund. Income earned or loss incurred on the investment is included as part of principal transactions and other income in the tables below. Revenue earned on the management contract is included as part of asset management in the tables below. As of June 30, 2020 1.79% U.S. Insurance JV U.S. Insurance JV is considered a related party because it is an equity method investment of the Company. The Company has an investment in and a management contract with the U.S. Insurance JV. Income earned or loss incurred on the investment is included as part of principal transactions and other income in the tables below. Revenue earned on the management contract is included as part of asset management and are shown in the tables below. As of June 30, 2020 4.66% Insurance SPAC The Insurance SPAC is a related party as it is an equity method investment of the Sponsor Entities, which are consolidated by the Company. As of June 30, 2020 26.5% March 19, 2019, first $10 $750 June 30, 2020 $350 4, 11, 25. CK Capital and AOI CK Capital and AOI are related parties as they are equity method investments of the Company. In December 2019, 45% $18 $17 10% $1 11. The following tables display the routine transactions recognized in the statements of operations from the identified related parties that are described above. Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net trading TBBK $ - $ 2 $ - $ 4 Asset management EuroDekania - 150 - 236 SPAC Fund 97 32 50 63 U.S. Insurance JV 91 71 181 150 $ 188 $ 253 $ 231 $ 449 Principal transactions and other income EuroDekania - (10 ) - 281 FinTech Acquisition Corp. 3 2 5 5 Insurance SPAC 30 31 60 35 SPAC Fund 87 25 28 49 U.S. Insurance JV 137 44 (30 ) 83 $ 257 $ 92 $ 63 $ 453 Income (loss) from equity method affiliates AOI 89 - 58 - CK Capital 12 - 242 - Insurance SPAC (1,334 ) (248 ) (1,640 ) (256 ) $ (1,233 ) $ (248 ) $ (1,340 ) $ (256 ) Operating expense (income) Duane Morris 331 63 650 165 FinTech Masala, LLC (11 ) (6 ) (22 ) (12 ) $ 320 $ 57 $ 628 $ 153 Interest expense (income) CBF 349 208 877 327 DGC Trust 482 418 1,015 808 EBC 72 48 144 95 Edward E. Cohen IRA - 87 48 174 JKD Investor 1,028 243 1,512 521 $ 1,931 $ 1,004 $ 3,596 $ 1,925 The following related party transactions are non-routine and are not K. Directors and Employees The Company has entered into employment agreements with Daniel G. Cohen and Joseph W. Pooler, Jr., its chief financial officer. The Company has entered into its standard indemnification agreement with each of its directors and executive officers. The Company maintains a 401 50% not 3% $ 84 $ 182 three six June 30, 2020 $78 $169 three six June 30, 2019 The Company leases office space from Zucker and Moore, LLC. Zucker and Moore, LLC is partially owned by Jack DiMaio, Jr., the vice chairman of the Company's board of directors. The lease agreement expired in June 2020 one June 2021. $24 three June 30, 2020 2019 $48 six June 30, 2020 2019 |
Note 25 - Due From Due To Relat
Note 25 - Due From Due To Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Due From Due To Related Parties Disclosure [Text Block] | 25 . DUE FROM / DUE TO RELATED PARTIES Amounts due to related parties related to redeemable financial instruments and outstanding debt are included as components of those balances in the consolidated balance sheets. Also, interest or investment return owed on those balances are included as a component of accounts payable and other in the consolidated balance sheets. Any investment made in an equity method affiliate for which the Company does not The following table summarizes amounts due from / to related parties as of each date shown. These amounts may 24 DUE FROM/DUE TO RELATED PARTIES (Dollars in Thousands) June 30, 2020 December 31, 2019 Employees & other $ 423 $ 466 Insurance SPAC 350 - Due from related parties $ 773 $ 466 |
Note 26 - Subsequent Events
Note 26 - Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 26 . SUBSEQUENT EVENTS In addition to Insurance Acquisition Corporation (Nasdaq: INSU), the Company is the sponsor of a second one not not July 2020, $175 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | A. Adoption of New Accounting Standards In February 2016, 2016 02, Leases (Topic 842 2018 01, 2018 10, 2018 11, 2018 20, 2019 01 January 1, 2019. $8,416, $8,860, $20, $18, $406. 13. In June 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326 2018 19, 2019 05, 2019 11 2020 02 2016 13, January 1, 2020 not In January 2017, 2017 04, Intangibles Goodwill and Other (Topic 350 Impairment 2 not 2017 04, January 1, 2020. six June 30, 2020 12. not 2017 04. In March 2017, 2017 08, Receivables – Nonrefundable Fees and Other Costs, Premium Amortization on Purchased Callable Debt Securities (Sub-Topic 310 20 not 2017 08, January 1, 2019 not In August 2017, 2017 12, Derivative and Hedging – Targeted Improvements to Accounting for Hedging Activities (Topic 815 2017 12, January 1, 2019 not In February 2018, 2018 02, Income Statement – Reporting Comprehensive Income (Topic 220 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018 02, January 1, 2019 not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 Nonemployee Share-Based Payment Accounting 718, 2018 07, January 1, 2019 not In August 2018, 2018 13, Fair Value Measurement (Topic 820 820, 3 3 December 15, 2019. 2018 13, January 1, 2020 not In October 2018, 2018 17, Consolidation (Topic 810 for Variable Interest Entities December 15, 2019 2018 17, January 1, 2020 not In November 2018, 2018 18, Collaborative Arrangements (Topic 808 Between Topic 808 606 not 2018 18, January 1, 2020 not In November 2019, 2019 08, Compensation – Stock Compensation (Topic ( 718 606 718, Compensation—Stock Compensation 2019 08, January 1, 2020 not In March 2020, 2020 04 , Reference Rate Reform (Topic 848 December 31, 2022. 2020 04, March 12, 2020 not B. Recent Accounting Developments In December 2019, 2019 12, Income Taxes (Topic 740 740 December 15, 2020 may In January 2020, 2020 01, Investments—Equity Securities (Topic 321 323 815 321, 323, 815 321 December 15, 2020. may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | C. Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments. These determinations were based on available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates and, therefore, these estimates may not may 8 Cash equivalents 1 Investments-trading third not Other investments, at fair value not Receivables under resale agreements 2 Trading securities sold, not third not Securities sold under agreements to repurchase 2 Redeemable financial instruments 3 Debt June 30, 2020 December 31, 2019 $67,571 $58,635 3 Derivatives may not third |
Note 5 - Net Trading (Tables)
Note 5 - Net Trading (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Net Trading [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 Net realized gains (losses) - trading inventory $ 8,226 $ 3,540 $ 18,669 $ 9,926 Net unrealized gains (losses) - trading inventory 2,005 1,967 1,565 2,371 Net gains and losses 10,231 5,507 20,234 12,297 Interest income- trading inventory 2,071 2,060 4,548 3,674 Interest income - residential transition loans - 33 - 47 Interest income-receivables under resale agreements 16,643 46,335 58,128 83,819 Interest income 18,714 48,428 62,676 87,540 Interest expense-securities sold under agreements to repurchase (8,775 ) (44,120 ) (43,541 ) (80,502 ) Interest expense-LegacyTexas Credit Facility - (26 ) (39 ) (29 ) Interest expense-margin payable (164 ) (1,119 ) (763 ) (1,912 ) Interest expense (8,939 ) (45,265 ) (44,343 ) (82,443 ) Net trading $ 20,006 $ 8,670 $ 38,567 $ 17,394 |
Note 6 - Receivables from and_2
Note 6 - Receivables from and Payables to Brokers, Dealers, and Clearing Agencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations [Table Text Block] | June 30, 2020 December 31, 2019 Deposits with clearing agencies $ 250 $ 250 Unsettled regular way trades, net 8,653 12,170 Receivables from clearing agencies 61,093 83,712 Receivables from brokers, dealers, and clearing agencies $ 69,996 $ 96,132 June 30, 2020 December 31, 2019 Margin payable $ 121,458 $ 208,441 Due to clearing agent - 32,820 Payables to brokers, dealers, and clearing agencies $ 121,458 $ 241,261 |
Note 7 - Financial Instruments
Note 7 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | June 30, 2020 December 31, 2019 U.S. government agency MBS and CMOs $ 154,592 $ 196,146 U.S. government agency debt securities 6,938 14,680 RMBS 16 15 U.S. Treasury securities 6,425 11,105 ABS 1 100 SBA loans 15,574 27,634 Corporate bonds and redeemable preferred stock 36,044 38,503 Foreign government bonds 732 844 Municipal bonds 3,488 13,737 Certificates of deposit 36 841 Derivatives 11,305 3,686 Equity securities 68 561 Residential transition loans 2,322 - Investments-trading $ 237,541 $ 307,852 |
Investments Sold, Not yet Purchased [Table Text Block] | June 30, 2020 December 31, 2019 U.S. Treasury securities $ 6,657 $ 16,827 Corporate bonds and redeemable preferred stock 49,261 58,083 Municipal bonds 20 20 Derivatives 10,218 3,017 Trading securities sold, not yet purchased $ 66,156 $ 77,947 |
Schedule of Other Investments at Fair Value [Table Text Block] | June 30, 2020 Amortized Carrying Unrealized Cost Value Gain / (Loss) Equity securities $ 6,905 $ 7,528 $ 623 U.S. Insurance JV 1,225 1,370 145 SPAC Fund 646 696 50 Residential loans 126 99 (27 ) Other investments, at fair value $ 8,902 $ 9,693 $ 791 December 31, 2019 Amortized Carrying Unrealized Cost Value Gain / (Loss) Equity securities $ 8,598 $ 9,352 $ 754 CLOs 2,894 2,522 (372 ) U.S. Insurance JV 2,048 2,223 175 SPAC Fund 646 668 22 Residential loans 129 99 (30 ) Other investments, at fair value $ 14,315 $ 14,864 $ 549 |
Note 8 - Fair Value Disclosur_2
Note 8 - Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Significant Significant Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Assets Fair Value (Level 1) (Level 2) (Level 3) Investments-trading: U.S. government agency MBS and CMOs $ 154,592 $ - $ 154,592 $ - U.S. government agency debt securities 6,938 - 6,938 - RMBS 16 - 16 - U.S. Treasury securities 6,425 6,425 - - ABS 1 - 1 - SBA loans 15,574 - 15,574 - Corporate bonds and redeemable preferred stock 36,044 - 36,044 - Foreign government bonds 732 - 732 - Municipal bonds 3,488 - 3,488 - Certificates of deposit 36 - 36 - Derivatives 11,305 - 11,305 - Equity securities 68 - 68 - Residential transition loans 2,322 - - 2,322 Total investments - trading $ 237,541 $ 6,425 $ 228,794 $ 2,322 Other investments, at fair value: Equity securities $ 7,528 $ - $ 7,528 $ - Residential loans 99 - 99 - 7,627 $ - $ 7,627 $ - Investments measured at NAV (1) 2,066 Total other investments, at fair value 9,693 Liabilities Trading securities sold, not yet purchased: U.S. Treasury securities $ 6,657 $ 6,657 $ - $ - Corporate bonds and redeemable preferred stock 49,261 - 49,261 - Municipal bonds 20 - 20 - Derivatives 10,218 - 10,218 - Total trading securities sold, not yet purchased $ 66,156 $ 6,657 $ 59,499 $ - Significant Significant Quoted Prices in Other Observable Unobservable Active Markets Inputs Inputs Assets Fair Value (Level 1) (Level 2) (Level 3) Investments-trading: U.S. government agency MBS and CMOs $ 196,146 $ - $ 196,146 $ - U.S. government agency debt securities 14,680 - 14,680 - RMBS 15 - 15 - U.S. Treasury securities 11,105 11,105 - - ABS 100 - 100 - SBA loans 27,634 - 27,634 - Corporate bonds and redeemable preferred stock 38,503 - 38,503 - Foreign government bonds 844 - 844 - Municipal bonds 13,737 - 13,737 - Certificates of deposit 841 - 841 - Derivatives 3,686 - 3,686 - Equity securities 561 - 561 - Total investments - trading $ 307,852 $ 11,105 $ 296,747 $ - Other investments, at fair value: Equity Securities $ 9,352 $ 2,009 $ 7,343 $ - CLOs 2,522 - - 2,522 Residential loans 99 - 99 - 11,973 $ 2,009 $ 7,442 $ 2,522 Investments measured at NAV (1) 2,891 Total other investments, at fair value $ 14,864 Liabilities Trading securities sold, not yet purchased: U.S. Treasury securities $ 16,827 $ 16,827 $ - $ - Corporate bonds and redeemable preferred stock 58,083 - 58,083 - Municipal bonds 20 - 20 - Derivatives 3,017 - 3,017 - Total trading securities sold, not yet purchased $ 77,947 $ 16,827 $ 61,120 $ - |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Beginning of period $ 4,833 $ 2,779 $ 2,522 $ 2,756 Net trading 37 - (41 ) - Gains & losses (1) (58 ) 6 (661 ) (27 ) Accretion of income (1) 46 91 124 197 Purchases 29 - 638 - Sales and returns of capital (2,565 ) (90 ) (5,538 ) (140 ) Reclassification of RTLs - - 5,278 - End of period $ 2,322 $ 2,786 $ 2,322 $ 2,786 Change in unrealized gains / (losses) (2) $ - $ 6 $ - $ (27 ) |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Significant Range of Fair Value Valuation Unobservable Weighted Significant June 30, 2020 Technique Inputs Average Inputs Assets Investments - trading Residential Transition Loans $ 2,322 Discounted Cash Flow Model Yield 15.00% 15.00% Significant Range of Fair Value Valuation Unobservable Weighted Significant December 31, 2019 Technique Inputs Average Inputs Assets Other investments, at fair value CLOs $ 2,522 Discounted Cash Flow Model Yield 17.9% 16.9% 19.2% Duration-years 5.8 5.3 6.5 Default rate 2.0% 2.0% 2.0% |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | Fair Value Unfunded Redemption Redemption June 30, 2020 Commitments Frequency Notice Period Other investments, at fair value U.S. Insurance JV (a) $ 1,370 $ 817 N/A N/A SPAC Fund (b) 696 N/A Quarterly after 1 year lock up 90 days $ 2,066 Fair Value Unfunded Redemption Redemption December 31, 2019 Commitments Frequency Notice Period Other investments, at fair value U.S. Insurance JV (a) $ 2,223 $ 817 N/A N/A SPAC Fund (b) 668 N/A Quarterly after 1 year lock up 90 days $ 2,891 |
Note 9 - Derivative Financial_2
Note 9 - Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Balance Sheet Classification June 30, 2020 December 31, 2019 TBAs and other forward agency MBS Investments-trading $ 11,298 $ 3,686 Other extended settlement trades Investments-trading 7 - Foreign currency forward contracts Other investments, at fair value - - TBAs and other forward agency MBS Trading securities sold, not yet purchased (10,198 ) (3,017 ) Other extended settlement trades Trading securities sold, not yet purchased (20 ) - $ 1,087 $ 669 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Income Statement Classification Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Foreign currency forward contracts Revenue-principal transactions and other income $ - $ 43 Other extended settlement trades Revenue-net trading (13 ) (72 ) TBAs and other forward agency MBS Revenue-net trading 1,175 1,948 $ 1,162 $ 1,919 Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 Income Statement Classification Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Foreign currency forward contracts Revenue-principal transactions and other income $ - $ 3 Other extended settlement trades Revenue-net trading (14 ) (48 ) TBAs and other forward agency MBS Revenue-net trading 1,388 1,187 $ 1,374 $ 1,142 |
Note 10 - Collateralized Secu_2
Note 10 - Collateralized Securities Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Table Text Block] | Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 2,956,935 $ 440,170 $ 400,758 $ - $ 3,797,863 MBS (gestation repo) 93,588 1,618,980 - - 1,712,568 SBA loans 14,327 - - - 14,327 $ 3,064,850 $ 2,059,150 $ 400,758 $ - $ 5,524,758 Reverse Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 431,749 $ 2,248,375 $ 384,832 $ 726,564 $ 3,791,520 MBS (gestation repo) 93,776 1,619,371 - - 1,713,147 $ 525,525 $ 3,867,746 $ 384,832 $ 726,564 $ 5,504,667 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 5,117,811 $ 1,546,510 $ - $ - $ 6,664,321 MBS (gestation repo) - 742,035 100,403 - 842,438 SBA loans 27,684 - - - 27,684 $ 5,145,495 $ 2,288,545 $ 100,403 $ - $ 7,534,443 Reverse Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Collateral Type: Continuous 30 days days 90 days Total U.S. government agency MBS (GCF repo) $ 1,231,027 $ 2,525,188 $ 2,319,079 $ 575,058 $ 6,650,352 MBS (gestation repo) - 747,692 101,958 - 849,650 $ 1,231,027 $ 3,272,880 $ 2,421,037 $ 575,058 $ 7,500,002 |
Note 11 - Investments in Equi_2
Note 11 - Investments in Equity Method Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | Insurance SPAC AOI CK Capital Total January 1, 2020 $ 3,222 $ 559 $ 18 $ 3,799 Investments / advances - 2,097 - 2,097 Distributions / repayments - - - - Earnings / (loss) realized (1,640 ) 58 242 (1,340 ) June 30, 2020 $ 1,582 $ 2,714 $ 260 $ 4,556 |
Note 12 - Goodwill (Tables)
Note 12 - Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | June 30, 2020 December 31, 2019 AFN $ 109 $ 109 JVB - 7,883 Goodwill $ 109 $ 7,992 |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of June 30, 2020 2020 - remaining $ 764 2021 1,108 2022 933 2023 950 2024 983 Thereafter 4,094 Total 8,832 Less imputed interest (1,741 ) Lease obligation $ 7,091 |
Note 14 - Other Receivables, _2
Note 14 - Other Receivables, Other Assets, Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2020 December 31, 2019 Cash collateral due from counterparties $ 664 $ 41,172 Asset management fees receivable 1,049 1,159 Accrued interest receivable and dividend receivable 2,316 3,549 Revenue share receivable 70 150 Other receivables 624 595 Other receivables $ 4,723 $ 46,625 |
Schedule of Other Assets [Table Text Block] | June 30, 2020 December 31, 2019 Deferred costs $ 183 $ 301 Prepaid expenses 1,072 796 Prepaid income taxes 58 Deposits 401 656 Miscellaneous other assets 275 275 Residential transition loans - 5,323 Furniture, equipment, and leasehold improvements, net 868 916 Intangible assets 166 166 Other assets $ 3,023 $ 8,433 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2020 December 31, 2019 Accounts payable $ 340 $ 362 Redeemable financial instruments accrued interest 1,011 403 Accrued interest payable 742 711 Accrued interest on securities sold, not yet purchased 632 914 Payroll taxes payable 706 729 Counterparty cash collateral 218,731 9,524 Accrued expense and other liabilities 4,860 7,652 Accounts payable and other liabilities $ 227,022 $ 20,295 |
Note 15 - Variable Interest E_2
Note 15 - Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Variable Interest Entities [Table Text Block] | As of June 30, 2020 As of December 31, 2019 Other Investments, at fair value $ 2,066 $ 5,413 Maximum exposure $ 2,066 $ 5,413 |
Note 16 - Redeemable Financia_2
Note 16 - Redeemable Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Redeemable Financial Instruments [Table Text Block] | As of June 30, 2020 As of December 31, 2019 JKD Capital Partners I LTD $ 7,957 $ 7,957 DGC Trust / CBF 8,500 8,500 ViaNova Capital Group, LLC 421 526 $ 16,878 $ 16,983 |
Note 17 - Debt (Tables)
Note 17 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | As of As of Interest Description June 30, 2020 December 31, 2019 Rate Terms Interest (4) Maturity Non-convertible debt: 12.00% senior note (the "2020 Senior Note") $ 4,500 $ - Fixed 12.00 % January 2022 12.00% senior note (the "2019 Senior Note") 2,400 6,786 Fixed 12.00 % September 2020 (1) PPP Loan 2,166 - Fixed 1.00 % May 2022 Contingent convertible debt: 8.00% convertible senior note (the "2017 Convertible Note") 15,000 15,000 Fixed 8.00 % March 2022 (2) Less unamortized debt issuance costs (557 ) (703 ) 14,443 14,297 Junior subordinated notes (3): Alesco Capital Trust I 28,125 28,125 Variable 4.76 % July 2037 Sunset Financial Statutory Trust I 20,000 20,000 Variable 5.52 % March 2035 Less unamortized discount (24,925 ) (25,124 ) 23,200 23,001 FT Financial Bank, N.A. Credit Facility 17,500 - Variable N/A April 2021 LegacyTexas Credit Facility - 4,777 Variable N/A NA Total $ 64,209 $ 48,861 |
Schedule Of Interest Expense By Debt Instrument [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Junior subordinated notes $ 751 $ 885 $ 1,572 $ 1,764 2020 Senior Notes 134 - 223 - 2017 Convertible Note 374 366 745 726 2013 Convertible Notes / 2019 Senior Notes 72 135 191 269 2018 FT LOC/2019 FT Revolver 362 90 514 182 Redeemable Financial Instrument - DGC Trust / CBF 457 261 1,147 409 Redeemable Financial Instrument - JKD Capital Partners I LTD 960 243 1,400 521 Redeemable Financial Instrument - ViaNova Capital Group, LLC (29 ) (41 ) (106 ) (78 ) $ 3,081 $ 1,939 $ 5,686 $ 3,793 |
Note 18 - Equity (Tables)
Note 18 - Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule Of Unrestricted Common Stock And Restricted Common Stock Activity [Table Text Block] | Common Stock Shares December 31, 2019 1,119,909 Vesting of shares 55,278 Shares withheld for employee taxes and retired (15,043 ) June 30, 2020 1,160,144 |
Units Received Pursuant To Agreement Table [Table Text Block] | Operating LLC Membership Units Units related to UIS Agreement 402,350 Total 402,350 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | Six Months Ended Six Months Ended June 30, 2020 June 30, 2019 Net income / (loss) attributable to Cohen & Company Inc. $ (2,201 ) $ (1,612 ) Transfers (to) from the non-controlling interest: Increase / (decrease) in Cohen & Company, Inc. paid in capital for the acquisition / (surrender) of additional units in consolidated subsidiary, net (123 ) 133 Changes from net income / (loss) attributable to Cohen & Company Inc. and transfers (to) from the non-controlling interest $ (2,324 ) $ (1,479 ) |
Note 20 - Earnings (Loss) Per_2
Note 20 - Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income / (loss) attributable to Cohen & Company Inc. $ 901 $ (410 ) $ (2,201 ) $ (1,612 ) Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership (1) 3,107 (491 ) (5,416 ) (1,109 ) Add: Interest expense incurred on dilutive convertible notes 373 - - Add / (deduct): Adjustment (2) (930 ) 298 29 351 Net income / (loss) on a fully converted basis $ 3,451 $ (603 ) $ (7,588 ) $ (2,370 ) Weighted average common shares outstanding - Basic 1,160,144 1,143,909 1,153,512 1,138,538 Unrestricted Operating LLC membership units exchangeable into Cohen & Company, Inc. shares (1) 2,802,864 532,409 2,798,331 532,409 Restricted units or shares 22,962 - - - Shares issuable upon conversion of dilutive convertible notes 1,034,483 - - - Weighted average common shares outstanding - Diluted (3) 5,020,453 1,676,318 3,951,843 1,670,947 Net income / (loss) per common share - Basic $ 0.78 $ (0.36 ) $ (1.91 ) $ (1.42 ) Net income / (loss) per common share - Diluted $ 0.69 $ (0.36 ) $ (1.92 ) $ (1.42 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 2019 2020 2019 2017 Convertible Note - 1,034,483 1,034,483 1,034,483 2013 Convertible Notes - 565,469 - 565,469 Restricted Common Stock - - 21,810 22,008 Restricted Operating LLC units - - 12,616 7,503 - 1,599,952 1,068,909 1,629,463 |
Note 22 - Segment and Geograp_2
Note 22 - Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Net trading $ 38,567 $ - $ - $ 38,567 $ - $ 38,567 Asset management - 3,307 - 3,307 - 3,307 Principal transactions and other income 6 215 (206 ) 15 - 15 Total revenues 38,573 3,522 (206 ) 41,889 - 41,889 Salaries/Wages 20,960 2,211 - 23,171 2,287 25,458 Other Operating Expense 6,235 1,071 102 7,408 2,659 10,067 Impairment of goodwill 7,883 - - 7,883 - 7,883 Total operating expenses 35,078 3,282 102 38,462 4,946 43,408 Operating income (loss) 3,495 240 (308 ) 3,427 (4,946 ) (1,519 ) Interest income (expense) (409 ) - - (409 ) (5,277 ) (5,686 ) Income (loss) from equity method affiliates - 300 (1,640 ) (1,340 ) - (1,340 ) Income (loss) before income taxes 3,086 540 (1,948 ) 1,678 (10,223 ) (8,545 ) Income tax expense (benefit) - - - - (29 ) (29 ) Net income (loss) 3,086 540 (1,948 ) 1,678 (10,194 ) (8,516 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (6,315 ) (6,315 ) Net income (loss) attributable to Cohen & Company Inc. $ 3,086 $ 540 $ (1,948 ) $ 1,678 $ (3,879 ) $ (2,201 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 9 $ 1 $ - $ 10 $ 154 $ 164 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Net trading $ 17,394 $ - $ - $ 17,394 $ - $ 17,394 Asset management - 3,747 - 3,747 - 3,747 Principal transactions and other income 2 222 944 1,168 - 1,168 Total revenues 17,396 3,969 944 22,309 - 22,309 Salaries/Wages 9,174 2,054 - 11,228 1,568 12,796 Other Operating Expense 5,502 1,228 200 6,930 2,133 9,063 Impairment of goodwill - - - - - - Total operating expenses 14,676 3,282 200 18,158 3,701 21,859 Operating income (loss) 2,720 687 744 4,151 (3,701 ) 450 Interest (expense) income (105 ) - - (105 ) (3,688 ) (3,793 ) Income (loss) from equity method affiliates - - (256 ) (256 ) - (256 ) Income (loss) before income taxes 2,615 687 488 3,790 (7,389 ) (3,599 ) Income tax expense (benefit) - - - - (747 ) (747 ) Net income (loss) 2,615 687 488 3,790 (6,642 ) (2,852 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (1,240 ) (1,240 ) Net income (loss) attributable to Cohen & Company Inc. $ 2,615 $ 687 $ 488 $ 3,790 $ (5,402 ) $ (1,612 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 9 $ 1 $ - $ 10 $ 149 $ 159 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1 ) Total Net trading $ 20,006 $ - $ - $ 20,006 $ - $ 20,006 Asset management - 1,692 - 1,692 - 1,692 Principal transactions and other income (2 ) 98 2,325 2,421 - 2,421 Total revenues 20,004 1,790 2,325 24,119 - 24,119 Salaries/Wages 9,050 1,094 - 10,144 1,180 11,324 Other Operating Expense 2,959 594 52 3,605 1,264 4,869 Impairment of goodwill - - - - - - Total operating expenses 12,009 1,688 52 13,749 2,444 16,193 Operating income (loss) 7,995 102 2,273 10,370 (2,444 ) 7,926 Interest income (expense) (333 ) - - (333 ) (2,748 ) (3,081 ) Income (loss) from equity method affiliates - 101 (1,334 ) (1,233 ) - (1,233 ) Income (loss) before income taxes 7,662 203 939 8,804 (5,192 ) 3,612 Income tax expense (benefit) - - - - 343 343 Net income (loss) 7,662 203 939 8,804 (5,535 ) 3,269 Less: Net income (loss) attributable to the non-controlling interest - - - - 2,368 2,368 Net income (loss) attributable to Cohen & Company Inc. $ 7,662 $ 203 $ 939 $ 8,804 $ (7,903 ) $ 901 Other statement of operations data Depreciation and amortization (included in total operating expense) $ 5 $ 1 $ - $ 6 $ 78 $ 84 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1 ) Total Net trading $ 8,670 $ - $ - $ 8,670 $ - $ 8,670 Asset management - 1,745 - 1,745 - 1,745 Principal transactions and other income 1 125 628 754 - 754 Total revenues 8,671 1,870 628 11,169 - 11,169 Salaries/Wages 4,626 932 - 5,558 874 6,432 Other Operating Expense 2,590 537 100 3,227 992 4,219 Impairment of goodwill - - - - - - Total operating expenses 7,216 1,469 100 8,785 1,866 10,651 Operating income (loss) 1,455 401 528 2,384 (1,866 ) 518 Interest (expense) income (49 ) - - (49 ) (1,890 ) (1,939 ) Income (loss) from equity method affiliates - - (248 ) (248 ) - (248 ) Income (loss) before income taxes 1,406 401 280 2,087 (3,756 ) (1,669 ) Income tax expense (benefit) - - - - (641 ) (641 ) Net income (loss) 1,406 401 280 2,087 (3,115 ) (1,028 ) Less: Net income (loss) attributable to the non-controlling interest - - - - (618 ) (618 ) Net income (loss) attributable to Cohen & Company Inc. $ 1,406 $ 401 $ 280 $ 2,087 $ (2,497 ) $ (410 ) Other statement of operations data Depreciation and amortization (included in total operating expense) $ 4 $ - $ - $ 4 $ 74 $ 78 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Total Assets $ 6,048,602 $ 1,470 $ 14,275 $ 6,064,347 $ 12,335 $ 6,076,682 Included within total assets: Investments in equity method affiliates $ - $ - $ 4,556 $ 4,556 $ - $ 4,556 Goodwill (2) $ 54 $ 55 $ - $ 109 $ - $ 109 Intangible assets (2) $ 166 $ - $ - $ 166 $ - $ 166 Capital Asset Principal Segment Unallocated Markets Management Investing Total (1) Total Total Assets $ 7,968,491 $ 1,616 $ 18,689 $ 7,988,796 $ 12,828 $ 8,001,624 Included within total assets: Investments in equity method affiliates $ - $ - $ 3,799 $ 3,799 $ - $ 3,799 Goodwill (2) $ 7,937 $ 55 $ - $ 7,992 $ - $ 7,992 Intangible assets (2) $ 166 $ - $ - $ 166 $ - $ 166 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total Revenues: United States $ 23,372 $ 10,309 $ 40,357 $ 20,393 Europe & Other 747 860 1,532 1,916 Total $ 24,119 $ 11,169 $ 41,889 $ 22,309 |
Note 24 - Related Party Trans_2
Note 24 - Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net trading TBBK $ - $ 2 $ - $ 4 Asset management EuroDekania - 150 - 236 SPAC Fund 97 32 50 63 U.S. Insurance JV 91 71 181 150 $ 188 $ 253 $ 231 $ 449 Principal transactions and other income EuroDekania - (10 ) - 281 FinTech Acquisition Corp. 3 2 5 5 Insurance SPAC 30 31 60 35 SPAC Fund 87 25 28 49 U.S. Insurance JV 137 44 (30 ) 83 $ 257 $ 92 $ 63 $ 453 Income (loss) from equity method affiliates AOI 89 - 58 - CK Capital 12 - 242 - Insurance SPAC (1,334 ) (248 ) (1,640 ) (256 ) $ (1,233 ) $ (248 ) $ (1,340 ) $ (256 ) Operating expense (income) Duane Morris 331 63 650 165 FinTech Masala, LLC (11 ) (6 ) (22 ) (12 ) $ 320 $ 57 $ 628 $ 153 Interest expense (income) CBF 349 208 877 327 DGC Trust 482 418 1,015 808 EBC 72 48 144 95 Edward E. Cohen IRA - 87 48 174 JKD Investor 1,028 243 1,512 521 $ 1,931 $ 1,004 $ 3,596 $ 1,925 |
Note 25 - Due From Due To Rel_2
Note 25 - Due From Due To Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule Of Due From Or Due To Related Parties [Table Text Block] | June 30, 2020 December 31, 2019 Employees & other $ 423 $ 466 Insurance SPAC 350 - Due from related parties $ 773 $ 466 |
Note 1 - Organization and Nat_2
Note 1 - Organization and Nature of Operations (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Assets under Management, Carrying Amount | $ 2,630 |
Number of Operating Segments | 3 |
Collateralized Debt Obligations [Member] | |
Assets under Management, Carrying Amount | $ 2,060 |
Assets Under Management, Percentage of Total | 78.20% |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Lease, Right-of-Use Asset | $ 6,583 | $ 7,155 | |
Operating Lease, Liability, Total | 7,091 | 7,693 | |
Retained Earnings (Accumulated Deficit), Ending Balance | (36,782) | (34,519) | |
Other Receivables | 4,723 | 46,625 | |
Debt Instrument, Fair Value Disclosure, Total | $ 67,571 | $ 58,635 | |
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | $ 8,416 | ||
Operating Lease, Liability, Total | 8,860 | ||
Other Receivables | 18 | ||
Other Liabilities, Total | (406) | ||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (20) |
Note 4 - Other Recent Busines_2
Note 4 - Other Recent Business Transactions or Events (Details Textual) $ / shares in Units, $ in Thousands | Feb. 03, 2020USD ($) | Mar. 22, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jul. 31, 2020EUR (€) | Jun. 29, 2020USD ($)$ / sharesshares | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common Stock, Shares, Issued, Total (in shares) | 1,246,710 | 1,246,710 | 1,193,624 | |||||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 1,246,710 | 1,246,710 | 1,193,624 | |||||||||
Goodwill, Impairment Loss | $ | $ 7,883 | |||||||||||
Proceeds from Issuance of Long-term Debt, Total | $ | 2,166 | |||||||||||
Repayments of Debt | $ | 9,163 | |||||||||||
Long-term Debt, Total | $ | 64,209 | $ 64,209 | $ 48,861 | |||||||||
Paycheck Protection Program CARES Act [Member] | ||||||||||||
Proceeds from Issuance of Long-term Debt, Total | $ | $ 2,166 | |||||||||||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | ||||||||||||
Debt Instrument, Face Amount | $ | $ 4,500 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | [1] | 12.00% | [1] | 12.00% | |||||||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | JKD Capital Partners I, LTD [Member] | Non-convertible Senior Notes [Member] | ||||||||||||
Debt Instrument, Face Amount | $ | $ 2,250 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||||||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | JKD Capital Partners I LTD and RN Capital Solutions LLC [Member] | Non-convertible Senior Notes [Member] | ||||||||||||
Debt Instrument, Face Amount | $ | $ 4,500 | |||||||||||
The 2019 Senior Notes [Member] | ||||||||||||
Repayments of Debt | $ | $ 4,386 | |||||||||||
Long-term Debt, Total | $ | $ 2,400 | |||||||||||
COVID-19 Pandemic [Member] | JVB Holdings [Member] | ||||||||||||
Goodwill, Impairment Loss | $ | $ 7,883 | |||||||||||
LegacyTexas Bank [Member] | ||||||||||||
Other Investment Not Readily Marketable, Quoted Value | $ | $ 2,363 | 2,363 | ||||||||||
Other Investment Not Readily Marketable, Fair Value | $ | $ 2,322 | $ 2,322 | ||||||||||
Insurance SPAC [Member] | ||||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ | $ 2,550 | |||||||||||
Insurance SPAC [Member] | AC Merger Sub [Member] | Merger Agreement [Member] | ||||||||||||
Merger Agreement, Customary Conditions, Tangible Assets after Closing | $ | $ 5,000 | |||||||||||
Sponsor Entities [Member] | ||||||||||||
Number of Placement Shares Retained (in shares) | 375,000 | |||||||||||
Number of Placement Shares to Be Distributed to Non-controlling Internets (in shares) | 253,000 | |||||||||||
Sponsor Entities [Member] | Minimum [Member] | ||||||||||||
Number of Founder Shares Retained (in shares) | 4,000,000 | |||||||||||
Number of Founder Shares to Be Distributed to Non-controlling Interests (in shares) | 2,200,000 | |||||||||||
Sponsor Entities [Member] | Maximum [Member] | ||||||||||||
Number of Founder Shares Retained (in shares) | 4,500,000 | |||||||||||
Number of Founder Shares to Be Distributed to Non-controlling Interests (in shares) | 2,500,000 | |||||||||||
Sponsor Entities [Member] | Insurance SPAC [Member] | ||||||||||||
Number of Founder Shares Collectively Held (in shares) | 5,103,333 | |||||||||||
Founder Shares, Percent of Shares to Become Transferable or Salable Upon Consummation of Business Combination | 20.00% | |||||||||||
Closing Share Price for Founder Shares to Become Transferable or Salable, Tranche One (in dollars per share) | $ / shares | $ 12 | |||||||||||
Closing Share Price for Founder Shares to Become Transferable or Salable, Tranche Two (in dollars per share) | $ / shares | 13.50 | |||||||||||
Closing Share Price for Founder Shares to Become Transferable or Salable, Tranche Three (in dollars per share) | $ / shares | 15 | |||||||||||
Closing Share Price for Founder Shares to Become Transferable or Salable, Tranche Four (in dollars per share) | $ / shares | $ 17 | |||||||||||
PIPE Investor [Member] | Insurance SPAC [Member] | ||||||||||||
Purchase Agreement, Maximum Number of Class A Common Stock (in shares) | 18,500,000 | |||||||||||
Share Price (in dollars per share) | $ / shares | $ 10 | |||||||||||
IPO [Member] | Insurance SPAC [Member] | ||||||||||||
Number of Units Sold (in shares) | 15,065,000 | |||||||||||
Number of Class A Common Stock in Each Unit (in shares) | 1 | |||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | |||||||||||
Number of Watrrants in Each Unit (in shares) | 0.5 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares) | 1 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 11.50 | |||||||||||
Unit Offering Price (in dollars per share) | $ / shares | $ 10 | |||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ | $ 150,700 | |||||||||||
Underwriters, Additional Units Authorized to Purchase (in shares) | 1,965,000 | |||||||||||
Common Stock, Shares, Issued, Total (in shares) | 20,653,333 | |||||||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 20,653,333 | |||||||||||
Private Placement [Member] | Insurance Acquisition Sponsor [Member] | Insurance SPAC [Member] | ||||||||||||
Number of Class A Common Stock in Each Unit (in shares) | 1 | |||||||||||
Number of Watrrants in Each Unit (in shares) | 0.5 | |||||||||||
Number of Placement Units Purchased (in shares) | 375,000 | |||||||||||
Aggregate Purchase Price of Placement Units | $ | $ 3,750 | |||||||||||
Aggregate Purchase Price per Placement Unit (in dollars per share) | $ / shares | $ 10 | |||||||||||
Subsidiary Subscription Agreement [Member] | Insurance SPAC [Member] | ||||||||||||
Purchase Agreement, Maximum Number of Class A Common Stock (in shares) | 200,000 | |||||||||||
Purchase Agreement, Additional Common Stock (in shares) | 1,300,000 | |||||||||||
PriDe III Fund [Member] | Subsequent Event [Member] | ||||||||||||
Capital Units, Value | € | € 375,000 | |||||||||||
[1] | Represents the interest rate in effect as of the last day of the reporting period. |
Note 5 - Net Trading - Net Trad
Note 5 - Net Trading - Net Trading (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net realized gains (losses) - trading inventory | $ 8,226 | $ 3,540 | $ 18,669 | $ 9,926 |
Net unrealized gains (losses) - trading inventory | 2,005 | 1,967 | 1,565 | 2,371 |
Net gains and losses | 10,231 | 5,507 | 20,234 | 12,297 |
Interest income- trading inventory | 2,071 | 2,060 | 4,548 | 3,674 |
Interest income - residential transition loans | 33 | 47 | ||
Interest income-receivables under resale agreements | 16,643 | 46,335 | 58,128 | 83,819 |
Interest income | 18,714 | 48,428 | 62,676 | 87,540 |
Interest expense-securities sold under agreements to repurchase | (8,775) | (44,120) | (43,541) | (80,502) |
Interest expense-LegacyTexas Credit Facility | (26) | (39) | (29) | |
Interest expense-margin payable | (164) | (1,119) | (763) | (1,912) |
Interest expense | (8,939) | (45,265) | (44,343) | (82,443) |
Net trading | $ 20,006 | $ 8,670 | $ 38,567 | $ 17,394 |
Note 6 - Receivables from and_3
Note 6 - Receivables from and Payables to Brokers, Dealers, and Clearing Agencies - Receivables from and Payables to from Brokers, Dealers and Clearing Agencies (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deposits with clearing agencies | $ 250 | $ 250 |
Unsettled regular way trades, net | 8,653 | 12,170 |
Receivables from clearing agencies | 61,093 | 83,712 |
Receivables from brokers, dealers, and clearing agencies | 69,996 | 96,132 |
Margin payable | 121,458 | 208,441 |
Due to clearing agent | 32,820 | |
Payables to brokers, dealers, and clearing agencies | $ 121,458 | $ 241,261 |
Note 7 - Financial Instrument_2
Note 7 - Financial Instruments - Investments - Trading (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments-trading | $ 237,541 | $ 307,852 |
Corporate Bonds and Redeemable Preferred Stock [Member] | ||
Investments-trading | 36,044 | 38,503 |
Foreign Government Bonds [Member] | ||
Investments-trading | 732 | 844 |
Municipal Bonds [Member] | ||
Investments-trading | 3,488 | 13,737 |
Certificates of Deposit [Member] | ||
Investments-trading | 36 | 841 |
Derivative [Member] | ||
Investments-trading | 11,305 | 3,686 |
Equity Securities [Member] | ||
Investments-trading | 68 | 561 |
Residential Transition Loans [Member] | ||
Investments-trading | 2,322 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Debt securities | 154,592 | 196,146 |
US Government Agencies Debt Securities [Member] | ||
Debt securities | 6,938 | 14,680 |
Residential Mortgage Backed Securities [Member] | ||
Debt securities | 16 | 15 |
US Treasury Securities [Member] | ||
Debt securities | 6,425 | 11,105 |
Asset-backed Securities [Member] | ||
Debt securities | 1 | 100 |
Small Business Administration Loans [Member] | ||
Debt securities | $ 15,574 | $ 27,634 |
Note 7 - Financial Instrument_3
Note 7 - Financial Instruments - Trading Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Trading securities sold, not yet purchased | $ 66,156 | $ 77,947 |
Corporate Bonds and Redeemable Preferred Stock [Member] | ||
Trading securities sold, not yet purchased | 49,261 | 58,083 |
Municipal Bonds [Member] | ||
Trading securities sold, not yet purchased | 20 | 20 |
Derivative [Member] | ||
Trading securities sold, not yet purchased | 10,218 | 3,017 |
US Treasury Securities [Member] | ||
Trading securities sold, not yet purchased | $ 6,657 | $ 16,827 |
Note 7 - Financial Instrument_4
Note 7 - Financial Instruments - Other Investments, at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other investments, amortized cost | $ 8,902 | $ 14,315 |
Other investments, carrying value | 9,693 | 14,864 |
Other investments, unrealized gain (loss) | 791 | 549 |
Collateralized Loan Obligations [Member] | ||
Other investments, amortized cost | 2,894 | |
Other investments, carrying value | 2,522 | |
Other investments, unrealized gain (loss) | (372) | |
U.S. Insurance JV [Member] | ||
Other investments, amortized cost | 1,225 | 2,048 |
Other investments, carrying value | 1,370 | 2,223 |
Other investments, unrealized gain (loss) | 145 | 175 |
SPAC Fund [Member] | ||
Other investments, amortized cost | 646 | 646 |
Other investments, carrying value | 696 | 668 |
Other investments, unrealized gain (loss) | 50 | 22 |
Residential Mortgage [Member] | ||
Other investments, amortized cost | 126 | 129 |
Other investments, carrying value | 99 | 99 |
Other investments, unrealized gain (loss) | (27) | (30) |
Equity Securities [Member] | ||
Other investments, amortized cost | 6,905 | 8,598 |
Other investments, carrying value | 7,528 | 9,352 |
Other investments, unrealized gain (loss) | $ 623 | $ 754 |
Note 8 - Fair Value Disclosur_3
Note 8 - Fair Value Disclosures (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Investments [Member] | ||||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 2,240 | $ 490 | $ (455) | $ 739 |
Note 8 - Fair Value Disclosur_4
Note 8 - Fair Value Disclosures - Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | ||
Investments-trading | $ 237,541 | $ 307,852 | ||
Other Investments, at fair value | 9,693 | 14,864 | ||
Trading securities sold, not yet purchased | 66,156 | 77,947 | ||
Corporate Bonds and Redeemable Preferred Stock [Member] | ||||
Investments-trading | 36,044 | 38,503 | ||
Trading securities sold, not yet purchased | 49,261 | 58,083 | ||
Foreign Government Bonds [Member] | ||||
Investments-trading | 732 | 844 | ||
Municipal Bonds [Member] | ||||
Investments-trading | 3,488 | 13,737 | ||
Trading securities sold, not yet purchased | 20 | 20 | ||
Certificates of Deposit [Member] | ||||
Investments-trading | 36 | 841 | ||
Derivative [Member] | ||||
Investments-trading | 11,305 | 3,686 | ||
Trading securities sold, not yet purchased | 10,218 | 3,017 | ||
Equity Securities [Member] | ||||
Investments-trading | 68 | 561 | ||
Other Investments, at fair value | 7,528 | 9,352 | ||
Residential Transition Loans [Member] | ||||
Investments-trading | 2,322 | |||
Fair Value, Recurring [Member] | ||||
Investments-trading | 237,541 | 307,852 | ||
Other Investments, at fair value | 9,693 | 14,864 | ||
Trading securities sold, not yet purchased | 66,156 | 77,947 | ||
Fair Value, Recurring [Member] | Corporate Bonds and Redeemable Preferred Stock [Member] | ||||
Investments-trading | 36,044 | 38,503 | ||
Trading securities sold, not yet purchased | 49,261 | 58,083 | ||
Fair Value, Recurring [Member] | Foreign Government Bonds [Member] | ||||
Investments-trading | 732 | 844 | ||
Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||||
Investments-trading | 3,488 | 13,737 | ||
Trading securities sold, not yet purchased | 20 | 20 | ||
Fair Value, Recurring [Member] | Certificates of Deposit [Member] | ||||
Investments-trading | 36 | 841 | ||
Fair Value, Recurring [Member] | Derivative [Member] | ||||
Investments-trading | 11,305 | 3,686 | ||
Trading securities sold, not yet purchased | 10,218 | 3,017 | ||
Fair Value, Recurring [Member] | Equity Securities [Member] | ||||
Investments-trading | 68 | 561 | ||
Other Investments, at fair value | 7,528 | 9,352 | ||
Fair Value, Recurring [Member] | Residential Transition Loans [Member] | ||||
Investments-trading | 2,322 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | 6,425 | 11,105 | ||
Trading securities sold, not yet purchased | 6,657 | 16,827 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Bonds and Redeemable Preferred Stock [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Government Bonds [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Derivative [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||||
Investments-trading | ||||
Other Investments, at fair value | 2,009 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Residential Transition Loans [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 228,794 | 296,747 | ||
Trading securities sold, not yet purchased | 59,499 | 61,120 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds and Redeemable Preferred Stock [Member] | ||||
Investments-trading | 36,044 | 38,503 | ||
Trading securities sold, not yet purchased | 49,261 | 58,083 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Government Bonds [Member] | ||||
Investments-trading | 732 | 844 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||||
Investments-trading | 3,488 | 13,737 | ||
Trading securities sold, not yet purchased | 20 | 20 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||||
Investments-trading | 36 | 841 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative [Member] | ||||
Investments-trading | 11,305 | 3,686 | ||
Trading securities sold, not yet purchased | 10,218 | 3,017 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||||
Investments-trading | 68 | 561 | ||
Other Investments, at fair value | 7,528 | 7,343 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Transition Loans [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | 2,322 | |||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Bonds and Redeemable Preferred Stock [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Government Bonds [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||||
Investments-trading | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||||
Investments-trading | ||||
Other Investments, at fair value | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Transition Loans [Member] | ||||
Investments-trading | 2,322 | |||
Fair Value, Recurring [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Other Investments, at fair value | 2,066 | [1] | 2,891 | [2] |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 154,592 | 196,146 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | ||||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 154,592 | 196,146 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 6,938 | 14,680 | ||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | ||||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 6,938 | 14,680 | ||
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 16 | 15 | ||
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | ||||
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 16 | 15 | ||
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
US Treasury Securities [Member] | ||||
Trading securities sold, not yet purchased | 6,657 | 16,827 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 6,425 | 11,105 | ||
Trading securities sold, not yet purchased | 6,657 | 16,827 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | 6,425 | 11,105 | ||
Trading securities sold, not yet purchased | 6,657 | 16,827 | ||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
Trading securities sold, not yet purchased | ||||
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 1 | 100 | ||
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | ||||
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 1 | 100 | ||
Asset-backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
Small Business Administration Loans [Member] | Fair Value, Recurring [Member] | ||||
Investments-trading | 15,574 | 27,634 | ||
Small Business Administration Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Investments-trading | ||||
Small Business Administration Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Investments-trading | 15,574 | 27,634 | ||
Small Business Administration Loans [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Investments-trading | ||||
Collateralized Loan Obligations [Member] | ||||
Other Investments, at fair value | 2,522 | |||
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | ||||
Other Investments, at fair value | 2,522 | |||
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Other Investments, at fair value | ||||
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Other Investments, at fair value | ||||
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Other Investments, at fair value | 2,522 | |||
Residential Mortgage [Member] | ||||
Other Investments, at fair value | 99 | 99 | ||
Residential Mortgage [Member] | Fair Value, Recurring [Member] | ||||
Other Investments, at fair value | 99 | 99 | ||
Residential Mortgage [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Other Investments, at fair value | ||||
Residential Mortgage [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Other Investments, at fair value | 99 | 99 | ||
Residential Mortgage [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Other Investments, at fair value | ||||
Total Investments not Measured at NAV [Member] | Fair Value, Recurring [Member] | ||||
Other Investments, at fair value | 7,627 | 11,973 | ||
Total Investments not Measured at NAV [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Other Investments, at fair value | 2,009 | |||
Total Investments not Measured at NAV [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Other Investments, at fair value | 7,627 | 7,442 | ||
Total Investments not Measured at NAV [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Other Investments, at fair value | $ 2,522 | |||
[1] | As a practical expedient, the Company uses NAV per share (or its equivalent) to measure the fair value of its investments in the U.S. Insurance JV and the SPAC Fund. The U.S. Insurance JV invests in USD denominated debt issued by small insurance and reinsurance companies. The SPAC Fund invests in equity securities of SPACs. According to ASC 820, these investments are not categorized within the valuation hierarchy. | |||
[2] | As a practical expedient, the Company uses NAV per share (or its equivalent) to measure the fair value of its investments in the U.S. Insurance JV and the SPAC Fund. The U.S. Insurance JV invests in USD denominated debt issued by small and medium size insurance and reinsurance companies. The SPAC Fund invests in equity securities of SPACs. According to ASC 820, these investments are not categorized within the valuation hierarchy. |
Note 8 - Fair Value Disclosur_5
Note 8 - Fair Value Disclosures - Level 3 Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Beginning of period | $ 4,833 | $ 2,779 | $ 2,522 | $ 2,756 | |
Net trading | 37 | (41) | |||
Gains & losses (1) | [1] | (58) | 6 | (661) | (27) |
Accretion of income (1) | [1] | 46 | 91 | 124 | 197 |
Purchases | 29 | 638 | |||
Sales and returns of capital | (2,565) | (90) | (5,538) | (140) | |
Reclassification of RTLs | 5,278 | ||||
End of period | 2,322 | 2,786 | 2,322 | 2,786 | |
Change in unrealized gains / (losses) (2) | [2] | $ 6 | $ (27) | ||
[1] | Gains and losses and accretion of income on other investments, at fair value are recorded as a component of principal transactions and other income in the consolidated statements of operations. | ||||
[2] | Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. |
Note 8 - Fair Value Disclosur_6
Note 8 - Fair Value Disclosures - Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Investments-trading | $ 237,541 | $ 307,852 |
Other Investments, at fair value | 9,693 | 14,864 |
Residential Transition Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | ||
Investments-trading | $ 2,322 | |
Residential Transition Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | Weighted Average [Member] | ||
Investments - trading | 0.15 | |
Collateralized Loan Obligations [Member] | ||
Other Investments, at fair value | 2,522 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | ||
Other Investments, at fair value | $ 2,522 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | Weighted Average [Member] | ||
Other investments, at fair value | 0.179 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | Minimum [Member] | ||
Other investments, at fair value | 0.169 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Yield Rate [Member] | Maximum [Member] | ||
Other investments, at fair value | 0.192 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Weighted Average [Member] | ||
Other investments, at fair value | 5.8 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Other investments, at fair value | 5.3 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Other investments, at fair value | 6.5 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Weighted Average [Member] | ||
Other investments, at fair value | 0.02 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Minimum [Member] | ||
Other investments, at fair value | 0.02 | |
Collateralized Loan Obligations [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Maximum [Member] | ||
Other investments, at fair value | 0.02 |
Note 8 - Fair Value Disclosur_7
Note 8 - Fair Value Disclosures - Fair Value Measurements of Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Other investments, at fair value | $ 2,066 | $ 2,891 | |
U.S. Insurance JV [Member] | |||
Other investments, at fair value | [1] | 1,370 | 2,223 |
Unfunded commitments | [1] | 817 | 817 |
SPAC Fund [Member] | |||
Other investments, at fair value | [2] | $ 696 | $ 668 |
Redemption notice period (Day) | [2] | 90 days | 90 days |
[1] | The U.S. Insurance JV invests in USD denominated debt issued by small and medium size insurance and reinsurance companies. | ||
[2] | The SPAC Fund invests in equity interests of SPACs. |
Note 9 - Derivative Financial_3
Note 9 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Foreign Exchange Forward [Member] | ||
Derivative, Notional Amount | $ 0 | $ 0 |
TBA and Other Forward MBS [Member] | Long [Member] | ||
Derivative, Notional Amount | 1,487,750 | 1,773,000 |
TBA and Other Forward MBS [Member] | Short [Member] | ||
Derivative, Notional Amount | 1,572,100 | 1,874,194 |
Other Extended Settlement Trade [Member] | Long [Member] | ||
Derivative, Notional Amount | 1,697 | 1,526 |
Other Extended Settlement Trade [Member] | Short [Member] | ||
Derivative, Notional Amount | $ 9,000 | $ 0 |
Note 9 - Derivative Financial_4
Note 9 - Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative financial instruments | $ 1,087 | $ 669 |
TBA and Other Forward MBS [Member] | Long [Member] | Investments -Trading [Member] | ||
Derivative financial instruments | 11,298 | 3,686 |
TBA and Other Forward MBS [Member] | Short [Member] | Trading Securities Sold, Not Yet Purchased [Member] | ||
Derivative financial instruments | (10,198) | (3,017) |
Other Extended Settlement Trade [Member] | Long [Member] | Investments -Trading [Member] | ||
Derivative financial instruments | 7 | |
Other Extended Settlement Trade [Member] | Short [Member] | Trading Securities Sold, Not Yet Purchased [Member] | ||
Derivative financial instruments | (20) | |
Foreign Exchange Forward [Member] | Other Investments [Member] | ||
Derivative financial instruments |
Note 9 - Derivative Financial_5
Note 9 - Derivative Financial Instruments - Statement of Operations Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative net gain (loss) | $ 1,374 | $ 1,142 | $ 1,162 | $ 1,919 |
Foreign Exchange Forward [Member] | Principal Transactions and Other Income [Member] | ||||
Derivative net gain (loss) | 3 | 43 | ||
Other Extended Settlement Trade [Member] | Net Trading [Member] | ||||
Derivative net gain (loss) | (14) | (48) | (13) | (72) |
TBA and Other Forward MBS [Member] | Net Trading [Member] | ||||
Derivative net gain (loss) | $ 1,388 | $ 1,187 | $ 1,175 | $ 1,948 |
Note 10 - Collateralized Secu_3
Note 10 - Collateralized Securities Transactions (Details Textual) $ in Thousands | Oct. 19, 2018 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Apr. 25, 2018USD ($) |
Securities Purchased under Agreements to Resell, Total | $ 5,504,667 | $ 5,504,667 | $ 7,500,002 | ||||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | $ 5,668,109 | $ 5,668,109 | $ 7,769,693 | ||||
Number of Counterparties Related to Reverse Repurchase Agreements | 37 | 37 | 41 | ||||
Securities Sold under Agreements to Repurchase, Total | $ 5,524,758 | $ 5,524,758 | $ 7,534,443 | ||||
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | 5,355,394 | 5,355,394 | 7,561,978 | ||||
Revenues, Total | 24,119 | $ 11,169 | 41,889 | $ 22,309 | |||
Fixed Income Clearing Corporation the (FICC) [Member] | |||||||
Securities Purchased under Agreements to Resell, Total | 1,118,530 | 1,118,530 | 371,025 | ||||
Securities Sold under Agreements to Repurchase, Total | $ 3,357,445 | $ 3,357,445 | $ 5,138,712 | ||||
Gestational Repo Business [Member] | |||||||
Number of Counterparties Related to Reverse Repurchase Agreements | 9 | 9 | 7 | ||||
Revenues, Total | $ 7,927 | $ 2,343 | $ 14,795 | $ 3,636 | |||
Intraday and Overnight Lending Facility [Member] | |||||||
Debt Instrument, Commitment Amount | 75,000 | 75,000 | |||||
Debt Instrument, Renewal Term (Day) | 364 days | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.12% | ||||||
Short-term Debt, Total | $ 0 | $ 0 | $ 32,818 | ||||
Interest Payable, Current | 2 | ||||||
Intraday and Overnight Lending Facility [Member] | Payable to Brokers, Dealers, and Clearing Agencies [Member] | |||||||
Short Term Debt, Including Accrued Interest | $ 32,820 | ||||||
Intraday and Overnight Lending Facility [Member] | Base Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||
Intraday and Overnight Lending Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
Fifth Third Financial Bank [Member] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 25,000 |
Note 10 - Collateralized Secu_4
Note 10 - Collateralized Securities Transactions - Secured Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | $ 5,524,758 | $ 7,534,443 |
Receivables under resale agreements | 5,504,667 | 7,500,002 |
Overnight and Continuous [Member] | ||
Securities sold under agreements to repurchase | 3,064,850 | 5,145,495 |
Receivables under resale agreements | 525,525 | 1,231,027 |
Maturity Less than 30 Days [Member] | ||
Securities sold under agreements to repurchase | 2,059,150 | 2,288,545 |
Receivables under resale agreements | 3,867,746 | 3,272,880 |
Maturity 30 to 90 Days [Member] | ||
Securities sold under agreements to repurchase | 400,758 | 100,403 |
Receivables under resale agreements | 384,832 | 2,421,037 |
Maturity Greater than 90 Days [Member] | ||
Securities sold under agreements to repurchase | ||
Receivables under resale agreements | 726,564 | 575,058 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities sold under agreements to repurchase | 3,797,863 | 6,664,321 |
Receivables under resale agreements | 3,791,520 | 6,650,352 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Overnight and Continuous [Member] | ||
Securities sold under agreements to repurchase | 2,956,935 | 5,117,811 |
Receivables under resale agreements | 431,749 | 1,231,027 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity Less than 30 Days [Member] | ||
Securities sold under agreements to repurchase | 440,170 | 1,546,510 |
Receivables under resale agreements | 2,248,375 | 2,525,188 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity 30 to 90 Days [Member] | ||
Securities sold under agreements to repurchase | 400,758 | |
Receivables under resale agreements | 384,832 | 2,319,079 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity Greater than 90 Days [Member] | ||
Securities sold under agreements to repurchase | ||
Receivables under resale agreements | 726,564 | 575,058 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities sold under agreements to repurchase | 1,712,568 | 842,438 |
Receivables under resale agreements | 1,713,147 | 849,650 |
Collateralized Mortgage Backed Securities [Member] | Overnight and Continuous [Member] | ||
Securities sold under agreements to repurchase | 93,588 | |
Receivables under resale agreements | 93,776 | |
Collateralized Mortgage Backed Securities [Member] | Maturity Less than 30 Days [Member] | ||
Securities sold under agreements to repurchase | 1,618,980 | 742,035 |
Receivables under resale agreements | 1,619,371 | 747,692 |
Collateralized Mortgage Backed Securities [Member] | Maturity 30 to 90 Days [Member] | ||
Securities sold under agreements to repurchase | 100,403 | |
Receivables under resale agreements | 101,958 | |
Collateralized Mortgage Backed Securities [Member] | Maturity Greater than 90 Days [Member] | ||
Securities sold under agreements to repurchase | ||
Receivables under resale agreements | ||
Small Business Administration Loans [Member] | ||
Securities sold under agreements to repurchase | 14,327 | 27,684 |
Small Business Administration Loans [Member] | Overnight and Continuous [Member] | ||
Securities sold under agreements to repurchase | 14,327 | 27,684 |
Small Business Administration Loans [Member] | Maturity Less than 30 Days [Member] | ||
Securities sold under agreements to repurchase | ||
Small Business Administration Loans [Member] | Maturity 30 to 90 Days [Member] | ||
Securities sold under agreements to repurchase | ||
Small Business Administration Loans [Member] | Maturity Greater than 90 Days [Member] | ||
Securities sold under agreements to repurchase |
Note 11 - Investments in Equi_3
Note 11 - Investments in Equity Method Affiliates - Investments in Equity Method Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
January 1, 2020 | $ 3,799 | |||
Investments / advances | 2,097 | $ 3,775 | ||
Distributions / repayments | ||||
Earnings / (loss) realized | $ (1,233) | $ (248) | (1,340) | $ (256) |
June 30, 2020 | 4,556 | 4,556 | ||
Insurance SPAC [Member] | ||||
January 1, 2020 | 3,222 | |||
Investments / advances | ||||
Distributions / repayments | ||||
Earnings / (loss) realized | (1,640) | |||
June 30, 2020 | 1,582 | 1,582 | ||
AOI [Member] | ||||
January 1, 2020 | 559 | |||
Investments / advances | 2,097 | |||
Distributions / repayments | ||||
Earnings / (loss) realized | 58 | |||
June 30, 2020 | 2,714 | 2,714 | ||
CK Capital Partners B.V. [Member] | ||||
January 1, 2020 | 18 | |||
Investments / advances | ||||
Distributions / repayments | ||||
Earnings / (loss) realized | 242 | |||
June 30, 2020 | $ 260 | $ 260 |
Note 12 - Goodwill (Details Tex
Note 12 - Goodwill (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill, Impairment Loss | $ 7,883 | |||
JVB Holdings [Member] | COVID-19 Pandemic [Member] | ||||
Goodwill, Impairment Loss | $ 7,883 |
Note 12 - Goodwill - Goodwill (
Note 12 - Goodwill - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill | [1] | $ 109 | $ 7,992 |
Alesco Financial Inc (AFN) [Member] | |||
Goodwill | 109 | 109 | |
JVB Holdings [Member] | |||
Goodwill | $ 7,883 | ||
[1] | Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table above. |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Operating Lease, Right-of-Use Asset | $ 6,583 | $ 6,583 | $ 7,155 | |||
Operating Lease, Liability, Total | 7,091 | 7,091 | 7,693 | |||
Retained Earnings (Accumulated Deficit), Ending Balance | (36,782) | (36,782) | (34,519) | |||
Other Receivables | $ 4,723 | $ 4,723 | $ 46,625 | |||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 8 years 36 days | 8 years 36 days | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.38% | 5.38% | ||||
Operating Lease, Payments | $ 800 | $ 709 | ||||
Sublease Income | $ 77 | $ 65 | 156 | 130 | ||
Operating Lease, Expense | $ 385 | $ 397 | $ 763 | $ 787 | ||
Accounting Standards Update 2016-02 [Member] | ||||||
Operating Lease, Right-of-Use Asset | $ 8,416 | |||||
Operating Lease, Liability, Total | 8,860 | |||||
Other Receivables | 18 | |||||
Other Liabilities, Total | (406) | |||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Retained Earnings (Accumulated Deficit), Ending Balance | $ (20) |
Note 13 - Leases - Future Matur
Note 13 - Leases - Future Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
2020 - remaining | $ 764 | |
2021 | 1,108 | |
2022 | 933 | |
2023 | 950 | |
2024 | 983 | |
Thereafter | 4,094 | |
Total | 8,832 | |
Less imputed interest | (1,741) | |
Operating Lease, Liability, Total | $ 7,091 | $ 7,693 |
Note 14 - Other Receivables, _3
Note 14 - Other Receivables, Other Assets, Accounts Payable and Other Liabilities - Other Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash collateral due from counterparties | $ 664 | $ 41,172 |
Asset management fees receivable | 1,049 | 1,159 |
Accrued interest receivable and dividend receivable | 2,316 | 3,549 |
Revenue share receivable | 70 | 150 |
Other receivables | 624 | 595 |
Other receivables | $ 4,723 | $ 46,625 |
Note 14 - Other Receivables, _4
Note 14 - Other Receivables, Other Assets, Accounts Payable and Other Liabilities - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred costs | $ 183 | $ 301 |
Prepaid expenses | 1,072 | 796 |
Prepaid income taxes | 58 | |
Deposits | 401 | 656 |
Miscellaneous other assets | 275 | 275 |
Residential transition loans | 5,323 | |
Furniture, equipment, and leasehold improvements, net | 868 | 916 |
Intangible assets | 166 | 166 |
Other assets | $ 3,023 | $ 8,433 |
Note 14 - Other Receivables, _5
Note 14 - Other Receivables, Other Assets, Accounts Payable and Other Liabilities - Accounts Payable and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts payable | $ 340 | $ 362 |
Redeemable financial instruments accrued interest | 1,011 | 403 |
Accrued interest payable | 742 | 711 |
Accrued interest on securities sold, not yet purchased | 632 | 914 |
Payroll taxes payable | 706 | 729 |
Counterparty cash collateral | 218,731 | 9,524 |
Accrued expense and other liabilities | 4,860 | 7,652 |
Accounts payable and other liabilities | $ 227,022 | $ 20,295 |
Note 15 - Variable Interest E_3
Note 15 - Variable Interest Entities (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Liabilities, Total | $ 6,036,303 | $ 6,036,303 | $ 7,952,868 | ||
Variable Interest Entity, Unavailability of Information, Number of Entities | 2 | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 817 | $ 817 | |||
Variable Interest Entity, Financial or Other Support, Amount | 0 | $ 0 | 0 | $ 0 | |
Liabilities, Total | $ 0 | $ 0 | $ 0 |
Note 15 - Variable Interest E_4
Note 15 - Variable Interest Entities - Carrying Value of Variable Interests in Non-consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Investments, at fair value | $ 9,693 | $ 14,864 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Other Investments, at fair value | 2,066 | 5,413 |
Maximum exposure | $ 2,066 | $ 5,413 |
Note 16 - Redeemable Financia_3
Note 16 - Redeemable Financial Instruments (Details Textual) - USD ($) $ in Thousands | Mar. 06, 2019 | Jan. 09, 2019 | Nov. 19, 2018 | Oct. 03, 2016 | Oct. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | Sep. 25, 2019 | Dec. 31, 2018 |
Redeemable Financial Instruments | $ 16,878 | $ 16,983 | |||||||||||||
Proceeds from Redeemable Financial Instruments | $ 1,268 | ||||||||||||||
Due from Related Parties, Total | 773 | 466 | |||||||||||||
Investment Agreement [Member] | |||||||||||||||
Investment Agreement, Repayment of Funded Operating Costs Before Quarterly Payments | $ 693 | ||||||||||||||
Investment Agreement [Member] | ViaNova Capital Group, LLC [Member] | |||||||||||||||
Payments to Subsidiary, Investment | 500 | ||||||||||||||
JKD Capital Partners I, LTD [Member] | |||||||||||||||
Redeemable Financial Instruments | $ 7,957 | $ 7,957 | |||||||||||||
JKD Capital Partners I, LTD [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | $ 12,000 | ||||||||||||||
Proceeds from Redeemable Financial Instruments | $ 1,268 | $ 6,000 | $ 1,000 | ||||||||||||
Due to Related Parties, Annual Return on Investment | 50.00% | ||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 42.00% | ||||||||||||||
Investment Agreement, Written Notice Period for Termination (Day) | 90 days | ||||||||||||||
Investment Agreement, Alternative Period of Required Prior Written Notice Contingency (Day) | 60 days | ||||||||||||||
Investment Agreement, Potential Consideration to Investor, Percentage on Qualified Sale | 25.00% | ||||||||||||||
CBF [Member] | |||||||||||||||
Repayments of Redeemable Financial Instruments | $ 1,500 | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | 6,500 | $ 8,000 | |||||||||||||
Due to Related Parties, Annual Return on Investment | 3.75% | 3.75% | |||||||||||||
Repayments of Redeemable Financial Instruments | $ 1,500 | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Revenue Between Zero and $11,777 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 11.47% | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Revenue in Excess of $11,777 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 7.65% | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Revenue Between Zero and $5,333 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 11.47% | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Revenue Between $5,333 Thousand and $8,000 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Return on Revenue of Business, Amount | $ 612 | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Revenue in Excess of $8,000 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 7.65% | ||||||||||||||
CBF [Member] | Investment Agreement [Member] | Forecast [Member] | |||||||||||||||
Due to Related Parties, Annual Return on Investment | 20.00% | ||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 15.29% | ||||||||||||||
Due to Related Parties, Annual Return on Investment if Revenue is Zero or Less | 3.75% | ||||||||||||||
DGC Trust [Member] | Forecast [Member] | |||||||||||||||
Redeemable Financial Instruments | $ 2,000 | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | $ 2,000 | ||||||||||||||
Due to Related Parties, Annual Return on Investment | 3.75% | 3.75% | |||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Revenue Between Zero and $11,777 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 3.53% | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Revenue in Excess of $11,777 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 2.35% | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Revenue Between Zero and $5,333 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 3.53% | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Revenue Between $5,333 Thousand and $8,000 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Return on Revenue of Business, Amount | $ 188 | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Revenue in Excess of $8,000 Thousand [Member] | |||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 2.35% | ||||||||||||||
DGC Trust [Member] | Investment Agreement [Member] | Forecast [Member] | |||||||||||||||
Due to Related Parties, Annual Return on Investment | 20.00% | ||||||||||||||
Due to Related Parties, Annual Revenue of the Business Return | 4.71% | ||||||||||||||
Due to Related Parties, Annual Return on Investment if Revenue is Zero or Less | 3.75% | ||||||||||||||
Hancock Funding, LLC [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | 500 | ||||||||||||||
New Avenue Investments LLC [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | 250 | ||||||||||||||
Proceeds from Redeemable Financial Instruments | $ 220 | ||||||||||||||
Due from Related Parties, Total | $ 30 | ||||||||||||||
JVB Holdings [Member] | Investment Agreement [Member] | |||||||||||||||
Redeemable Financial Instruments | $ 2,750 |
Note 16 - Redeemable Financia_4
Note 16 - Redeemable Financial Instruments - Redeemable Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Redeemable financial instruments | $ 16,878 | $ 16,983 |
JKD Capital Partners I, LTD [Member] | ||
Redeemable financial instruments | 7,957 | 7,957 |
DGC Trust/CBF [Member] | ||
Redeemable financial instruments | 8,500 | 8,500 |
ViaNova Capital Group, LLC [Member] | ||
Redeemable financial instruments | $ 421 | $ 526 |
Note 17 - Debt (Details Textual
Note 17 - Debt (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Feb. 03, 2020 | Sep. 24, 2019 | Jun. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Redeemable Non-controlling Interest Membership Units Not Held Share Ratio | 10 | ||||||
Junior Subordinated Debenture Owed To Unconsolidated Subsidiary Trust Net Of Ownership Interest In Trust | $ 49,614 | ||||||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Amount | 1,489 | ||||||
Edward E. Cohen IRA [Member] | |||||||
Repayments of Long-term Debt, Total | $ 4,386 | ||||||
Junior Subordinated Debt [Member] | |||||||
Junior Subordinated Debenture Owed To Unconsolidated Subsidiary Trust Net Of Ownership Interest In Trust | $ 49,614 | ||||||
Yield To Maturities | 14.31% | ||||||
Non-convertible Senior Notes 12.00% (2019 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 12.00% | [1],[2] | ||||
Debt Instrument, Interest Rate In Event of Default | 9.00% | 13.00% | |||||
Long-term Debt, Gross | [1] | $ 2,400 | $ 6,786 | ||||
Convertible Note 2017 [Member] | |||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.45 | $ 14.50 | |||||
Sunset Financial Statutory Trust I [Member] | Junior Subordinated Debt [Member] | Alesco Capital Trust I [Member] | |||||||
Fair Value of Common Securities Variable Interest Entities Trusts | $ 0 | ||||||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | [2] | 12.00% | ||||
Debt Instrument, Face Amount | $ 4,500 | ||||||
Long-term Debt, Gross | $ 4,500 | ||||||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | JKD Capital Partners I, LTD [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||
Debt Instrument, Face Amount | $ 2,250 | ||||||
The 2019 FT Revolver [Member] | Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000 | ||||||
FT LOC 2018 [Member] | Credit Facility [Member] | |||||||
Long-term Debt, Gross | 17,500 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 7,500 | ||||||
FT Financial Bank, N.A. [Member] | Credit Facility [Member] | |||||||
Long-term Debt, Gross | $ 17,500 | ||||||
[1] | On September 25, 2019, the Company amended the previously outstanding 2013 Convertible Notes, which were scheduled to mature on September 25, 2019. The material terms and conditions of the 2013 Convertible Notes remained substantially the same, except that (i) the maturity date changed from September 25, 2019 to September 25, 2020; (ii) the conversion feature in the 2013 Convertible Notes was removed; (iii) the interest rate changed from 8% per annum (9% in the event of certain events of default) to 12% per annum (13% in the event of certain events of default); and (iv) the restrictions regarding the prepayment were removed. The post amendment notes are referred to herein as the "2019 Senior Notes" and the pre-amendment notes are referred to herein as the "2013 Convertible Notes." | ||||||
[2] | Represents the interest rate in effect as of the last day of the reporting period. |
Note 17 - Debt - Detail of Debt
Note 17 - Debt - Detail of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Sep. 24, 2019 | ||
Debt | $ 64,209 | $ 48,861 | ||||
Contingent Convertible Senior Notes [Member] | ||||||
Less unamortized debt issuance costs | (557) | (703) | ||||
Debt | 14,443 | 14,297 | ||||
Junior subordinated notes [Member] | ||||||
Debt | [1] | 23,200 | 23,001 | |||
Less unamortized discount | [1] | (24,925) | (25,124) | |||
Non-convertible Senior Notes 12.00% (2020 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | ||||||
Long-term Debt, Gross | $ 4,500 | |||||
Interest Rate | 12.00% | [2] | 12.00% | |||
Non-convertible Senior Notes 12.00% (2019 Senior Notes) [Member] | Non-convertible Senior Notes [Member] | ||||||
Long-term Debt, Gross | [3] | $ 2,400 | 6,786 | |||
Interest Rate | 12.00% | [2],[3] | 8.00% | |||
PPP Loan [Member] | Non-convertible Senior Notes [Member] | ||||||
Long-term Debt, Gross | $ 2,166 | |||||
Interest Rate | [2] | 1.00% | ||||
Contingent Convertible Senior Notes 8.00% (2017 Convertible Note) [Member] | Contingent Convertible Senior Notes [Member] | ||||||
Long-term Debt, Gross | [4] | $ 15,000 | 15,000 | |||
Interest Rate | [2],[4] | 8.00% | ||||
Alesco Capital Trust I [Member] | Junior subordinated notes [Member] | ||||||
Long-term Debt, Gross | [1] | $ 28,125 | 28,125 | |||
Interest Rate | [1],[2] | 4.76% | ||||
Sunset Financial Statutory Trust I [Member] | Junior subordinated notes [Member] | ||||||
Long-term Debt, Gross | [1] | $ 20,000 | 20,000 | |||
Interest Rate | [1],[2] | 5.52% | ||||
FT Financial Bank, N.A. [Member] | Credit Facility [Member] | ||||||
Long-term Debt, Gross | $ 17,500 | |||||
Legacy Texas [Member] | Credit Facility [Member] | ||||||
Long-term Debt, Gross | $ 4,777 | |||||
[1] | The junior subordinated notes listed represent debt the Company owes to the two trusts noted above. The total par amount owed by the Company to the trusts is $49,614. However, the Company owns the common stock of the trusts in a total par amount of $1,489. The Company pays interest (and at maturity, principal) to the trusts on the entire $49,614 junior notes outstanding. However, the Company receives back from the trusts the pro rata share of interest and principal on the common stock held by the Company. These trusts are VIEs and the Company does not consolidate them even though the Company holds the common stock. The Company carries the common stock on its balance sheet at a value of $0. The junior subordinated notes are recorded at a discount to par. When factoring in the discount, the yield to maturity of the junior subordinated notes as of June 30, 2020 on a combined basis was 14.31% assuming the variable rate in effect on the last day of the reporting period remains in effect until maturity. | |||||
[2] | Represents the interest rate in effect as of the last day of the reporting period. | |||||
[3] | On September 25, 2019, the Company amended the previously outstanding 2013 Convertible Notes, which were scheduled to mature on September 25, 2019. The material terms and conditions of the 2013 Convertible Notes remained substantially the same, except that (i) the maturity date changed from September 25, 2019 to September 25, 2020; (ii) the conversion feature in the 2013 Convertible Notes was removed; (iii) the interest rate changed from 8% per annum (9% in the event of certain events of default) to 12% per annum (13% in the event of certain events of default); and (iv) the restrictions regarding the prepayment were removed. The post amendment notes are referred to herein as the "2019 Senior Notes" and the pre-amendment notes are referred to herein as the "2013 Convertible Notes." | |||||
[4] | The holder of the 2017 Convertible Note may convert all or any part of the outstanding principal amount at any time prior to maturity into units of membership interests of the Operating LLC at a conversion price of $1.45 per unit, subject to customary anti-dilution adjustments. Units of membership interests in the Operating LLC not held by Cohen & Company Inc. may, with certain restrictions, be redeemed and exchanged into shares of the Cohen & Company Inc. common stock, par value $0.01 per share ("Common Stock") on a ten-for-one basis. Therefore, the 2017 Convertible Note can be converted into Operating LLC units of membership interests and then redeemed and exchanged into Common Stock at an effective conversion price of $14.50. See note 20 to our Annual Report on Form 10-K for the year ended December 31, 2019. |
Note 17 - Debt - Interest Expen
Note 17 - Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest expense, net | $ 3,081 | $ 1,939 | $ 5,686 | $ 3,793 |
Interest income, net | 3,081 | 1,939 | 5,686 | 3,793 |
Junior subordinated notes [Member] | ||||
Interest expense, net | 751 | 885 | 1,572 | 1,764 |
Senior Notes 2020 [Member] | ||||
Interest expense, net | 134 | 223 | ||
Convertible Note 2017 [Member] | ||||
Interest expense, net | 374 | 366 | 745 | 726 |
Convertible 2013 Notes/ 2019 Senior Notes [Member] | ||||
Interest expense, net | 72 | 135 | 191 | 269 |
FT 2018/ 2019 FT Revolver [Member] | ||||
Interest expense, net | 362 | 90 | 514 | 182 |
Redeemable Financial Instrument - DGC Family Fintech Trust / CBF [Member] | ||||
Interest expense, net | 457 | 261 | 1,147 | 409 |
Redeemable Financial Instrument - JKD Capital Partners I LTD [Member] | ||||
Interest expense, net | 960 | 243 | 1,400 | 521 |
Redeemable Financial Instrument - ViaNova Capital Group, LLC [Member] | ||||
Interest income, net | $ (29) | $ (41) | $ (106) | $ (78) |
Note 18 - Equity (Details Textu
Note 18 - Equity (Details Textual) $ / shares in Units, $ in Thousands | Mar. 20, 2020$ / shares | Mar. 10, 2020 | Dec. 30, 2019USD ($)$ / sharesshares | Dec. 23, 2019$ / sharesshares | Jan. 01, 2011 | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares | Dec. 31, 2019$ / sharesshares | Mar. 19, 2018USD ($) | Jan. 19, 2017$ / shares |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | shares | 27,413,098 | 27,413,098 | ||||||||||
Preferred Stock, Shares Authorized (in shares) | shares | 60,000,000 | 60,000,000 | ||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
Ratio of Common Stock To Membership Units | 0.1 | |||||||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | $ | $ 115 | $ 119 | ||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Increase (decrease) other investments | $ | $ 7,779 | |||||||||||
Plan 10b5-1 [Member] | ||||||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 2,000 | |||||||||||
Treasury Stock, Shares, Acquired (in shares) | shares | 7,890 | |||||||||||
Treasury Stock, Value, Acquired, Par Value Method | $ | $ 65 | |||||||||||
The 2020 Rights Agreement [Member] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | 100 | |||||||||||
Repurchase of Warrants, Price per Share (in dollars per share) | $ / shares | 200 | |||||||||||
Share Price (in dollars per share) | $ / shares | $ 20 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares) | shares | 10 | |||||||||||
Voting Power, Percentage | 50.00% | |||||||||||
Percentage of Purchase Price Required for Adjustments | 1.00% | |||||||||||
Number of Fractal Units Issued (in shares) | shares | 0 | |||||||||||
Preferred Stock, Redemption Price Per Share (in dollars per share) | $ / shares | $ 0.001 | |||||||||||
Noncontrolling Interest [Member] | ||||||||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | $ | 115 | (119) | $ 115 | |||||||||
Noncontrolling Interest [Member] | IMXI [Member] | Tranche One [Member] | ||||||||||||
Share Price (in dollars per share) | $ / shares | $ 15 | |||||||||||
Noncontrolling Interest [Member] | IMXI [Member] | Tranche Two [Member] | ||||||||||||
Share Price (in dollars per share) | $ / shares | $ 17 | |||||||||||
Additional Paid-in Capital [Member] | ||||||||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | $ | (123) | 133 | (123) | 133 | ||||||||
AOCI Attributable to Parent [Member] | ||||||||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | $ | $ 8 | $ (14) | $ 8 | $ (14) | ||||||||
SPA, Daniel G. Cohen And DGC Trust [Member] | ||||||||||||
Class of Warrant or Right, Exercise Trigger, Percentage of Common Stock Owned by Individual or Affiliates | 19.99% | |||||||||||
Daniel G. Cohen [Member] | ||||||||||||
Stock Issued During Period, Value, New Issues | $ | 4,351 | |||||||||||
Daniel G. Cohen [Member] | DGC Trust [Member] | ||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 3,428 | |||||||||||
COHN, LLC [Member] | Noncontrolling Interest [Member] | IMXI [Member] | ||||||||||||
Minority Interest, Shares Issued (in shares) | shares | 662,361 | |||||||||||
COHN, LLC [Member] | Noncontrolling Interest [Member] | IMXI [Member] | Tranche One [Member] | ||||||||||||
Shares Subject To Certain Restrictions On Transfer (in shares) | shares | 264,021 | |||||||||||
COHN, LLC [Member] | Noncontrolling Interest [Member] | IMXI [Member] | Tranche Two [Member] | ||||||||||||
Shares Subject To Certain Restrictions On Transfer (in shares) | shares | 264,023 | |||||||||||
Series E Preferred Stock [Member] | ||||||||||||
Ratio of Shares To Vote | 10 | |||||||||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | shares | 4,983,557 | |||||||||||
Series F Preferred Stock [Member] | ||||||||||||
Ratio of Shares To Vote | 10 | |||||||||||
Preferred Stock, Shares Authorized (in shares) | shares | 25,000,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | |||||||||||
Series F Preferred Stock [Member] | Mr. Cohen [Member] | ||||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | 12,549,273 | |||||||||||
Series F Preferred Stock [Member] | DGC Trust [Member] | ||||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 9,880,268 | |||||||||||
Series F Preferred Stock [Member] | SPA, Daniel G. Cohen And DGC Trust [Member] | Noncontrolling Interest [Member] | ||||||||||||
Minority Interest, Shares Issued (in shares) | shares | 22,429,541 | 22,429,541 | ||||||||||
Series F Preferred Stock [Member] | Daniel G. Cohen [Member] | COHN, LLC [Member] | ||||||||||||
Minority Interest, Shares Issued (in shares) | shares | 370,881 | |||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.00001 | |||||||||||
Series F Preferred Stock [Member] | IMXI and COHN, LLC [Member] | COHN, LLC [Member] | ||||||||||||
Minority Interest, Shares Issued (in shares) | shares | 662,361 | |||||||||||
Series F Preferred Stock [Member] | IMXI and COHN, LLC [Member] | DGC Trust [Member] | ||||||||||||
Minority Interest, Shares Issued (in shares) | shares | 291,480 | |||||||||||
Series C Junior Participating Preferred Stock [Member] | ||||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 100 | |||||||||||
Class of Warrant or Right, Exercise Trigger, Percentage of Common Stock Owned by Individual or Affiliates | 4.95% | 4.95% |
Note 18 - Equity - Schedule of
Note 18 - Equity - Schedule of Unrestricted Common Stock Activity (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Common stock shares (in shares) | 1,119,909 |
Vesting of shares (in shares) | 55,278 |
Shares withheld for employee taxes and retired (in shares) | (15,043) |
Common stock shares (in shares) | 1,160,144 |
Note 18 - Equity - Operating LL
Note 18 - Equity - Operating LLC Membership Units (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Units related to UIS Agreement (in shares) | 402,350 |
Unit Issuance and Surrender Agreement [Member] | |
Units related to UIS Agreement (in shares) | 402,350 |
Note 18 - Equity - Schedule o_2
Note 18 - Equity - Schedule of Effects of Changes in Ownership Interest Subsidiary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income (loss) attributable to Cohen & Company Inc. | $ 901 | $ (410) | $ (2,201) | $ (1,612) |
Increase / (decrease) in Cohen & Company, Inc. paid in capital for the acquisition / (surrender) of additional units in consolidated subsidiary, net | (123) | 133 | ||
Changes from net income / (loss) attributable to Cohen & Company Inc. and transfers (to) from the non-controlling interest | $ (2,324) | $ (1,479) |
Note 19 - Net Capital Require_2
Note 19 - Net Capital Requirements (Details Textual) $ in Thousands | Jun. 30, 2020USD ($) |
JVB's [Member] | |
Broker-Dealer, Net Capital, Total | $ 67,830 |
Broker-Dealer, Excess Net Capital, 1500 Percent, Aggregate Indebtedness Standard, Total | 67,222 |
CCFEL [Member] | |
Broker-Dealer, Net Capital, Total | 1,419 |
Broker-Dealer, Excess Net Capital, 1500 Percent, Aggregate Indebtedness Standard, Total | 772 |
Broker-Dealer, Minimum Net Capital Required, Aggregate Indebtedness Standard, Total | 647 |
Cohen and Company Financial Limited [Member] | |
Broker-Dealer, Net Capital, Total | 625 |
Broker-Dealer, Excess Net Capital, 1500 Percent, Aggregate Indebtedness Standard, Total | 455 |
Broker-Dealer, Minimum Net Capital Required, Aggregate Indebtedness Standard, Total | $ 170 |
Note 20 - Earnings (Loss) Per_3
Note 20 - Earnings (Loss) Per Common Share (Details Textual) | 6 Months Ended |
Jun. 30, 2020 | |
Redeemable Non-controlling Interest Membership Units Not Held Share Ratio | 10 |
Note 20 - Earnings (Loss) Per_4
Note 20 - Earnings (Loss) Per Common Share- Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Net income / (loss) attributable to Cohen & Company Inc. | $ 901 | $ (410) | $ (2,201) | $ (1,612) | |
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership (1) | [1] | 3,107 | (491) | (5,416) | (1,109) |
Add: Interest expense incurred on dilutive convertible notes | 373 | ||||
Add / (deduct): Adjustment (2) | [2] | (930) | 298 | 29 | 351 |
Net income / (loss) on a fully converted basis | $ 3,451 | $ (603) | $ (7,588) | $ (2,370) | |
Weighted average shares outstanding-basic (in shares) | 1,160,144 | 1,143,909 | 1,153,512 | 1,138,538 | |
Unrestricted Operating LLC membership units exchangeable into Cohen & Company, Inc. shares (1) (in shares) | [1] | 2,802,864 | 532,409 | 2,798,331 | 532,409 |
Restricted units or shares (in shares) | 22,962 | ||||
Shares issuable upon conversion of dilutive convertible notes (in shares) | 1,034,483 | ||||
Weighted average shares outstanding-diluted (in shares) | [3] | 5,020,453 | 1,676,318 | 3,951,843 | 1,670,947 |
Basic income (loss) per common share (in dollars per share) | $ 0.78 | $ (0.36) | $ (1.91) | $ (1.42) | |
Diluted income (loss) per common share (in dollars per share) | $ 0.69 | $ (0.36) | $ (1.92) | $ (1.42) | |
[1] | The Operating LLC units of membership interest not held by Cohen & Company Inc. (that is, those held by the noncontrolling interest) may be redeemed and exchanged into shares of the Company on a ten-for-one basis. The Operating LLC units of membership interests not held by Cohen & Company Inc. are redeemable, at the member's option at any time, for (i) cash in an amount equal to the average of the per share closing prices of the Common Stock for the ten consecutive trading days immediately preceding the date the Company receives the member's redemption notice, or (ii) at the Company's option, one tenth of a share of the Common Stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Common Stock as a dividend or other distribution on the outstanding Common Stock, or a further subdivision or combination of the outstanding shares of the Common Stock. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income (loss) per common share when the effect is not anti-dilutive using the if-converted method. | ||||
[2] | An adjustment is included because the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable, if the Operating LLC units of membership interests had been converted at the beginning of the period. | ||||
[3] | Potentially diluted securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 2019 2020 2019 2017 Convertible Note - 1,034,483 1,034,483 1,034,483 2013 Convertible Notes - 565,469 - 565,469 Restricted Common Stock - - 21,810 22,008 Restricted Operating LLC units - - 12,616 7,503 - 1,599,952 1,068,909 1,629,463 |
Note 20 - Earnings (Loss) Per_5
Note 20 - Earnings (Loss) Per Common Share - Schedule of Anti-Dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,599,952 | 1,068,909 | 1,629,463 | |
Contingent Convertible Senior Notes 8.00% (2017 Convertible Note) [Member] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,034,483 | 1,034,483 | 1,034,483 | |
Contingent Convertible Senior Notes 8% (2013 Convertible Notes) [Member | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 565,469 | 565,469 | ||
Restricted Stock [Member] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 21,810 | 22,008 | ||
Restricted Operating LLC Units [Member] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,616 | 7,503 |
Note 21 - Commitments and Con_2
Note 21 - Commitments and Contingencies (Details Textual) $ in Billions | Jun. 30, 2020USD ($) |
JVB Holdings [Member] | |
Loss Contingency, Estimate of Possible Loss | $ 1 |
Note 22 - Segment and Geograp_3
Note 22 - Segment and Geographic Information - Statements of Operations Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Net trading | $ 20,006 | $ 8,670 | $ 38,567 | $ 17,394 | |||
Asset management | 1,692 | 1,745 | 3,307 | 3,747 | |||
Principal transactions and other income | 2,421 | 754 | 15 | 1,168 | |||
Total revenues | 24,119 | 11,169 | 41,889 | 22,309 | |||
Salaries/Wages | 11,324 | 6,432 | 25,458 | 12,796 | |||
Other Operating Expense | 4,869 | 4,219 | 10,067 | 9,063 | |||
Goodwill, Impairment Loss | 7,883 | ||||||
Total operating expenses | 16,193 | 10,651 | 43,408 | 21,859 | |||
Operating income (loss) | 7,926 | 518 | (1,519) | 450 | |||
Interest income (expense) | (3,081) | (1,939) | (5,686) | (3,793) | |||
Earnings / (loss) realized | (1,233) | (248) | (1,340) | (256) | |||
Income (loss) before income taxes | 3,612 | (1,669) | (8,545) | (3,599) | |||
Income tax expense (benefit) | 343 | (641) | (29) | (747) | |||
Net income (loss) | 3,269 | $ (11,785) | (1,028) | $ (1,824) | (8,516) | (2,852) | |
Less: Net income (loss) attributable to the non-controlling interest | 2,368 | (618) | (6,315) | (1,240) | |||
Net income (loss) attributable to Cohen & Company Inc. | 901 | (410) | (2,201) | (1,612) | |||
Depreciation and amortization (included in total operating expense) | 84 | 78 | 164 | 159 | |||
Revenues, Total | 24,119 | 11,169 | 41,889 | 22,309 | |||
Net Trading [Member] | |||||||
Net trading | 38,567 | 17,394 | |||||
Asset management | 20,006 | 8,670 | |||||
Asset Management [Member] | |||||||
Asset management | 1,692 | 1,745 | 3,307 | 3,747 | |||
Principal Transactions and Other Income [Member] | |||||||
Asset management | 2,421 | 754 | |||||
Principal transactions and other income | 15 | 1,168 | |||||
Operating Segments [Member] | |||||||
Total revenues | 24,119 | 11,169 | 41,889 | 22,309 | |||
Salaries/Wages | 10,144 | 5,558 | 23,171 | 11,228 | |||
Other Operating Expense | 3,605 | 3,227 | 7,408 | 6,930 | |||
Goodwill, Impairment Loss | 7,883 | ||||||
Total operating expenses | 13,749 | 8,785 | 38,462 | 18,158 | |||
Operating income (loss) | 10,370 | 2,384 | 3,427 | 4,151 | |||
Interest income (expense) | (333) | (49) | (409) | (105) | |||
Earnings / (loss) realized | (1,233) | (248) | (1,340) | (256) | |||
Income (loss) before income taxes | 8,804 | 2,087 | 1,678 | 3,790 | |||
Income tax expense (benefit) | |||||||
Net income (loss) | 8,804 | 2,087 | 1,678 | 3,790 | |||
Less: Net income (loss) attributable to the non-controlling interest | |||||||
Net income (loss) attributable to Cohen & Company Inc. | 8,804 | 2,087 | 1,678 | 3,790 | |||
Depreciation and amortization (included in total operating expense) | 6 | 4 | 10 | 10 | |||
Revenues, Total | 24,119 | 11,169 | 41,889 | 22,309 | |||
Operating Segments [Member] | Net Trading [Member] | |||||||
Net trading | 38,567 | 17,394 | |||||
Asset management | 20,006 | 8,670 | |||||
Operating Segments [Member] | Asset Management [Member] | |||||||
Asset management | 1,692 | 1,745 | 3,307 | 3,747 | |||
Operating Segments [Member] | Principal Transactions and Other Income [Member] | |||||||
Asset management | 2,421 | 754 | |||||
Principal transactions and other income | 15 | 1,168 | |||||
Operating Segments [Member] | Capital Markets [Member] | |||||||
Total revenues | 20,004 | 8,671 | 38,573 | 17,396 | |||
Salaries/Wages | 9,050 | 4,626 | 20,960 | 9,174 | |||
Other Operating Expense | 2,959 | 2,590 | 6,235 | 5,502 | |||
Goodwill, Impairment Loss | 7,883 | ||||||
Total operating expenses | 12,009 | 7,216 | 35,078 | 14,676 | |||
Operating income (loss) | 7,995 | 1,455 | 3,495 | 2,720 | |||
Interest income (expense) | (333) | (49) | (409) | (105) | |||
Earnings / (loss) realized | |||||||
Income (loss) before income taxes | 7,662 | 1,406 | 3,086 | 2,615 | |||
Income tax expense (benefit) | |||||||
Net income (loss) | 7,662 | 1,406 | 3,086 | 2,615 | |||
Less: Net income (loss) attributable to the non-controlling interest | |||||||
Net income (loss) attributable to Cohen & Company Inc. | 7,662 | 1,406 | 3,086 | 2,615 | |||
Depreciation and amortization (included in total operating expense) | 5 | 4 | 9 | 9 | |||
Revenues, Total | 20,004 | 8,671 | 38,573 | 17,396 | |||
Operating Segments [Member] | Capital Markets [Member] | Net Trading [Member] | |||||||
Net trading | 38,567 | 17,394 | |||||
Asset management | 20,006 | 8,670 | |||||
Operating Segments [Member] | Capital Markets [Member] | Asset Management [Member] | |||||||
Asset management | |||||||
Operating Segments [Member] | Capital Markets [Member] | Principal Transactions and Other Income [Member] | |||||||
Asset management | (2) | 1 | |||||
Principal transactions and other income | 6 | 2 | |||||
Operating Segments [Member] | Asset Management Segment [Member] | |||||||
Total revenues | 1,790 | 1,870 | 3,522 | 3,969 | |||
Salaries/Wages | 1,094 | 932 | 2,211 | 2,054 | |||
Other Operating Expense | 594 | 537 | 1,071 | 1,228 | |||
Goodwill, Impairment Loss | |||||||
Total operating expenses | 1,688 | 1,469 | 3,282 | 3,282 | |||
Operating income (loss) | 102 | 401 | 240 | 687 | |||
Interest income (expense) | |||||||
Earnings / (loss) realized | 101 | 300 | |||||
Income (loss) before income taxes | 203 | 401 | 540 | 687 | |||
Income tax expense (benefit) | |||||||
Net income (loss) | 203 | 401 | 540 | 687 | |||
Less: Net income (loss) attributable to the non-controlling interest | |||||||
Net income (loss) attributable to Cohen & Company Inc. | 203 | 401 | 540 | 687 | |||
Depreciation and amortization (included in total operating expense) | 1 | 1 | 1 | ||||
Revenues, Total | 1,790 | 1,870 | 3,522 | 3,969 | |||
Operating Segments [Member] | Asset Management Segment [Member] | Net Trading [Member] | |||||||
Net trading | |||||||
Asset management | |||||||
Operating Segments [Member] | Asset Management Segment [Member] | Asset Management [Member] | |||||||
Asset management | 1,692 | 1,745 | 3,307 | 3,747 | |||
Operating Segments [Member] | Asset Management Segment [Member] | Principal Transactions and Other Income [Member] | |||||||
Asset management | 98 | 125 | |||||
Principal transactions and other income | 215 | 222 | |||||
Operating Segments [Member] | Principal Investing [Member] | |||||||
Total revenues | 2,325 | 628 | (206) | 944 | |||
Salaries/Wages | |||||||
Other Operating Expense | 52 | 100 | 102 | 200 | |||
Goodwill, Impairment Loss | |||||||
Total operating expenses | 52 | 100 | 102 | 200 | |||
Operating income (loss) | 2,273 | 528 | (308) | 744 | |||
Interest income (expense) | |||||||
Earnings / (loss) realized | (1,334) | (248) | (1,640) | (256) | |||
Income (loss) before income taxes | 939 | 280 | (1,948) | 488 | |||
Income tax expense (benefit) | |||||||
Net income (loss) | 939 | 280 | (1,948) | 488 | |||
Less: Net income (loss) attributable to the non-controlling interest | |||||||
Net income (loss) attributable to Cohen & Company Inc. | 939 | 280 | (1,948) | 488 | |||
Depreciation and amortization (included in total operating expense) | |||||||
Revenues, Total | 2,325 | 628 | (206) | 944 | |||
Operating Segments [Member] | Principal Investing [Member] | Net Trading [Member] | |||||||
Net trading | |||||||
Asset management | |||||||
Operating Segments [Member] | Principal Investing [Member] | Asset Management [Member] | |||||||
Asset management | |||||||
Operating Segments [Member] | Principal Investing [Member] | Principal Transactions and Other Income [Member] | |||||||
Asset management | 2,325 | 628 | |||||
Principal transactions and other income | (206) | 944 | |||||
Segment Reconciling Items [Member] | |||||||
Total revenues | [1] | ||||||
Salaries/Wages | [1] | 1,180 | 874 | 2,287 | 1,568 | ||
Other Operating Expense | [1] | 1,264 | 992 | 2,659 | 2,133 | ||
Goodwill, Impairment Loss | [1] | ||||||
Total operating expenses | [1] | 2,444 | 1,866 | 4,946 | 3,701 | ||
Operating income (loss) | [1] | (2,444) | (1,866) | (4,946) | (3,701) | ||
Interest income (expense) | [1] | (2,748) | (1,890) | (5,277) | (3,688) | ||
Earnings / (loss) realized | [1] | ||||||
Income (loss) before income taxes | [1] | (5,192) | (3,756) | (10,223) | (7,389) | ||
Income tax expense (benefit) | [1] | 343 | (641) | (29) | (747) | ||
Net income (loss) | [1] | (5,535) | (3,115) | (10,194) | (6,642) | ||
Less: Net income (loss) attributable to the non-controlling interest | [1] | 2,368 | (618) | (6,315) | (1,240) | ||
Net income (loss) attributable to Cohen & Company Inc. | [1] | (7,903) | (2,497) | (3,879) | (5,402) | ||
Depreciation and amortization (included in total operating expense) | [1] | 78 | 74 | 154 | 149 | ||
Revenues, Total | [1] | ||||||
Segment Reconciling Items [Member] | Net Trading [Member] | |||||||
Net trading | [1] | ||||||
Asset management | [1] | ||||||
Segment Reconciling Items [Member] | Asset Management [Member] | |||||||
Asset management | [1] | ||||||
Segment Reconciling Items [Member] | Principal Transactions and Other Income [Member] | |||||||
Asset management | [1] | ||||||
Principal transactions and other income | [1] | ||||||
[1] | Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the chief operating decision maker. |
Note 22 - Segment and Geograp_4
Note 22 - Segment and Geographic Information - Balance Sheet Date (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Total Assets | $ 6,076,682 | $ 8,001,624 | |
Investments in equity method affiliates | 4,556 | 3,799 | |
Goodwill | [1] | 109 | 7,992 |
Intangible assets (2) | [1] | 166 | 166 |
Operating Segments [Member] | |||
Total Assets | 6,064,347 | 7,988,796 | |
Investments in equity method affiliates | 4,556 | 3,799 | |
Goodwill | [1] | 109 | 7,992 |
Intangible assets (2) | [1] | 166 | 166 |
Segment Reconciling Items [Member] | |||
Total Assets | [2] | 12,335 | 12,828 |
Investments in equity method affiliates | [2] | ||
Goodwill | [1],[2] | ||
Intangible assets (2) | [1],[2] | ||
Capital Markets [Member] | Operating Segments [Member] | |||
Total Assets | 6,048,602 | 7,968,491 | |
Investments in equity method affiliates | |||
Goodwill | [1] | 54 | 7,937 |
Intangible assets (2) | [1] | 166 | 166 |
Asset Management Segment [Member] | Operating Segments [Member] | |||
Total Assets | 1,470 | 1,616 | |
Investments in equity method affiliates | |||
Goodwill | [1] | 55 | 55 |
Intangible assets (2) | [1] | ||
Principal Investing [Member] | Operating Segments [Member] | |||
Total Assets | 14,275 | 18,689 | |
Investments in equity method affiliates | 4,556 | 3,799 | |
Goodwill | [1] | ||
Intangible assets (2) | [1] | ||
[1] | Goodwill and intangible assets are allocated to the Capital Markets and Asset Management business segments as indicated in the table above. | ||
[2] | Unallocated assets primarily include: (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets. Such amounts are excluded in business segment reporting to the chief operating decision maker. |
Note 22 - Segment and Geograp_5
Note 22 - Segment and Geographic Information - Geographic Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total revenues | $ 24,119 | $ 11,169 | $ 41,889 | $ 22,309 |
UNITED STATES | ||||
Total revenues | 23,372 | 10,309 | 40,357 | 20,393 |
United Kingdom & Other [Member] | ||||
Total revenues | $ 747 | $ 860 | $ 1,532 | $ 1,916 |
Note 23 - Supplemental Cash F_2
Note 23 - Supplemental Cash Flow Disclosure (Details Textual) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 4,753 | $ 3,525 | |||||
Income Taxes Paid | 114 | 24 | |||||
Proceeds from Income Tax Refunds | 12 | 48 | |||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | 115 | 119 | |||||
Increase (Decrease) Due To Recorded Interest Income In Redeemable Financial Instruments | (105) | (78) | |||||
Operating Lease, Right-of-Use Asset | 6,583 | $ 7,155 | |||||
Operating Lease, Liability, Total | 7,091 | 7,693 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 36,913 | 42,736 | 40,379 | 41,579 | 48,756 | $ 42,438 | |
Increase (Decrease) in Other Receivables | (41,902) | (4,819) | |||||
Collateralized Financings, Total | 218,731 | 9,524 | |||||
Net Cash Provided by (Used in) Operating Activities, Total | 209,225 | (8,613) | |||||
Inflow Included in Cash Provided by Operating Activities Due to Increase in Cash Collateral Held | 209,207 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (20) | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Operating Lease, Right-of-Use Asset | $ 8,416 | ||||||
Operating Lease, Liability, Total | 8,860 | ||||||
Increase (Decrease) in Other Receivables | 18 | ||||||
Increase (Decrease) in Other Operating Liabilities, Total | (406) | ||||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 20 | ||||||
Additional Paid-in Capital [Member] | |||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | (123) | 133 | (123) | 133 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 68,622 | 68,689 | 68,669 | 68,819 | 68,714 | 68,591 | |
Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | |||||||
AOCI Attributable to Parent [Member] | |||||||
Minority Interest, Increase (Decrease) Related to Units of Consolidated Subsidiary | 8 | (14) | 8 | (14) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ (936) | $ (916) | $ (925) | $ (904) | $ (915) | (908) | |
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance |
Note 24 - Related Party Trans_3
Note 24 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2020 | Dec. 30, 2019 | Sep. 29, 2017 | Oct. 03, 2016 | Aug. 28, 2015 | Oct. 31, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2017 | Sep. 30, 2013 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Preferred Stock, Shares Issued, Total (in shares) | 27,413,098 | 27,413,098 | 27,413,098 | |||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |||||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | |||||||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 84 | $ 78 | $ 182 | $ 169 | ||||||||||||
SPAC Fund [Member] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 1.79% | 1.79% | ||||||||||||||
U.S. Insurance JV [Member] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 4.66% | 4.66% | ||||||||||||||
CK Capital Partners B.V. [Member] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 45.00% | |||||||||||||||
Equity Method Investment, Quoted Market Value | $ 18 | |||||||||||||||
AOI [Member] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | |||||||||||||||
Equity Method Investment, Quoted Market Value | $ 1 | |||||||||||||||
Insurance SPAC [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 350 | |||||||||||||||
Service Fees, Per Month | 10 | |||||||||||||||
Related Party Transactions, Agreed Amount To Lend | $ 750 | $ 750 | ||||||||||||||
COHN, LLC [Member] | FinTech Acquisition Corp II [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 2,513 | |||||||||||||||
Sponsor Entities [Member] | Insurance SPAC [Member] | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 26.50% | 26.50% | ||||||||||||||
TBBK [Member] | ||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | 0 | ||||||||||||||
Interest Expense, Related Party | $ 0 | 0 | 0 | 0 | ||||||||||||
Daniel G. Cohen [Member] | ||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 4,351 | |||||||||||||||
Daniel G. Cohen [Member] | CK Capital Partners B.V. [Member] | ||||||||||||||||
Equity Method Investment, Quoted Market Value | $ 17 | |||||||||||||||
Daniel G. Cohen [Member] | Series F Preferred Stock [Member] | COHN, LLC [Member] | ||||||||||||||||
Minority Interest, Shares Issued (in shares) | 370,881 | |||||||||||||||
Preferred Stock, Shares Issued, Total (in shares) | 12,549,273 | 12,549,273 | ||||||||||||||
CBF Cohen Bros. Financial [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 8,000 | |||||||||||||||
DGC Trust/CBF [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | 10,000 | |||||||||||||||
Related Party Transaction, Purchases from Related Party | $ 1,500 | |||||||||||||||
EBC Family Trust [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 4,000 | |||||||||||||||
Notes Payable, Related Parties | 2,400 | |||||||||||||||
Stock Issued During Period, Value, New Issues | $ 1,600 | |||||||||||||||
Edward E. Cohen IRA [Member] | Contingent Convertible Senior Notes [Member] | ||||||||||||||||
Related Party Transaction, Convertible Notes Purchased Between Related Parties | $ 4,386 | |||||||||||||||
JKD Capital Partners I, LTD [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 2,250 | |||||||||||||||
Investments In and Advance To Affiliates Amount Of Equity | $ 6,000 | $ 1,268 | $ 1,000 | |||||||||||||
DGC Trust [Member] | ||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ 2,000 | |||||||||||||||
DGC Trust [Member] | IMXI [Member] | Common Stock [Member] | ||||||||||||||||
Investment Owned, Balance, Shares (in shares) | 291,480 | |||||||||||||||
Investment Owned, at Fair Value | $ 3,428 | |||||||||||||||
DGC Trust [Member] | Series F Preferred Stock [Member] | ||||||||||||||||
Preferred Stock, Shares Issued, Total (in shares) | 9,880,268 | |||||||||||||||
FinTech Masala [Member] | ||||||||||||||||
Consulting Fees Per Month | $ (1) | |||||||||||||||
Betsy Cohen [Member] | Sponsor Entities [Member] | ||||||||||||||||
Investments In and Advance To Affiliates Amount Of Equity | $ 2 | |||||||||||||||
Zucker and Moore, LLC [Member] | ||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 24 | $ 24 | $ 48 | $ 48 |
Note 24 - Related Party Trans_4
Note 24 - Related Party Transactions - Routine Transactions Recognized in the Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Asset management | $ 188 | $ 253 | $ 231 | $ 449 |
Principal transactions and other income | 257 | 92 | 63 | 453 |
Income (loss) from equity method affiliates | (1,233) | (248) | (1,340) | (256) |
Operating expense (income) | 320 | 57 | 628 | 153 |
Interest expense (income) | 1,931 | 1,004 | 3,596 | 1,925 |
TBBK [Member] | ||||
Net trading | 2 | 4 | ||
EuroDekania Management Limited [Member] | ||||
Asset management | 150 | 236 | ||
Principal transactions and other income | (10) | 281 | ||
SPAC Fund [Member] | ||||
Asset management | 97 | 32 | 50 | 63 |
Principal transactions and other income | 87 | 25 | 28 | 49 |
U.S. Insurance JV [Member] | ||||
Asset management | 91 | 71 | 181 | 150 |
Principal transactions and other income | 137 | 44 | (30) | 83 |
FinTech Acquisition Corp II [Member] | ||||
Principal transactions and other income | 3 | 2 | 5 | 5 |
Operating expense (income) | (11) | (6) | (22) | (12) |
Insurance SPAC [Member] | ||||
Principal transactions and other income | 30 | 31 | 60 | 35 |
Income (loss) from equity method affiliates | (1,334) | (248) | (1,640) | (256) |
AOI [Member] | ||||
Income (loss) from equity method affiliates | 89 | 58 | ||
CK Capital Partners B.V. [Member] | ||||
Income (loss) from equity method affiliates | 12 | 242 | ||
Duane Morris [Member] | ||||
Operating expense (income) | 331 | 63 | 650 | 165 |
CBF [Member] | ||||
Interest expense (income) | 349 | 208 | 877 | 327 |
DGC Trust [Member] | ||||
Interest expense (income) | 482 | 418 | 1,015 | 808 |
EBC [Member] | ||||
Interest expense (income) | 72 | 48 | 144 | 95 |
Edward E. Cohen IRA [Member] | ||||
Interest expense (income) | 87 | 48 | 174 | |
JKD Capital Partners I, LTD [Member] | ||||
Interest expense (income) | $ 1,028 | $ 243 | $ 1,512 | $ 521 |
Note 25 - Due From Due To Rel_3
Note 25 - Due From Due To Related Parties (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Due from related parties | $ 773 | $ 466 |
Employees & Other [Member] | ||
Due from related parties | 423 | 466 |
Insurance SPAC [Member] | ||
Due from related parties | $ 350 |
Note 26 - Subsequent Events (De
Note 26 - Subsequent Events (Details Textual) $ in Millions | Aug. 06, 2020USD ($) |
Subsequent Event [Member] | IPO [Member] | SPAC II [Member] | |
Units to Be Sold, Value | $ 175 |