Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FBRC | ' |
Entity Registrant Name | 'FBR & CO. | ' |
Entity Central Index Key | '0001371446 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 8,880,246 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $122,586 | $207,973 |
Receivables: | ' | ' |
Securities borrowed | 578,399 | ' |
Due from brokers, dealers and clearing organizations | 320,080 | 4,949 |
Customers | 3,256 | 4,485 |
Other | 3,374 | 658 |
Financial instruments owned, at fair value | 176,862 | 144,743 |
Other investments, at cost | 7,000 | 7,681 |
Goodwill and intangibles assets | 5,070 | ' |
Furniture, equipment, software and leasehold improvements, net of accumulated depreciation and amortization | 8,932 | 3,286 |
Deferred tax assets, net of valuation allowance | 25,268 | 30,893 |
Prepaid expenses and other assets | 5,579 | 5,904 |
Total assets | 1,256,406 | 410,572 |
Liabilities | ' | ' |
Securities loaned | 581,003 | ' |
Securities sold but not yet purchased, at fair value | 335,281 | 42,241 |
Accrued compensation and benefits | 52,560 | 58,502 |
Accounts payable, accrued expenses and other liabilities | 17,511 | 10,351 |
Due to brokers, dealers and clearing organizations | ' | 8,701 |
Total liabilities | 986,355 | 119,795 |
Commitments and Contingencies (Note 7) | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, $0.001 par value, 100,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.001 par value, 75,000,000 shares authorized, 8,894,950 and 10,545,509 shares issued and outstanding, respectively | 9 | 11 |
Additional paid-in capital | 315,600 | 362,983 |
Restricted stock units | 32,055 | 21,487 |
Accumulated other comprehensive income, net of taxes | 38 | 34 |
Accumulated deficit | -77,651 | -93,738 |
Total shareholders' equity | 270,051 | 290,777 |
Total liabilities and shareholders' equity | $1,256,406 | $410,572 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 8,894,950 | 10,545,509 |
Common stock, shares outstanding | 8,894,950 | 10,545,509 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investment banking: | ' | ' | ' | ' |
Capital raising | $27,137 | $15,998 | $95,765 | $164,849 |
Advisory | 2,152 | 3,616 | 5,947 | 8,092 |
Institutional brokerage | 11,946 | 13,194 | 41,680 | 40,021 |
Net investment income | 3,075 | 650 | 16,000 | 3,957 |
Interest | 4,861 | 334 | 5,415 | 1,490 |
Dividends and other | 226 | 264 | 806 | 815 |
Total revenues | 49,397 | 34,056 | 165,613 | 219,224 |
Interest expense | 7,300 | ' | 12,060 | ' |
Revenues, net of interest expense | 42,097 | 34,056 | 153,553 | 219,224 |
Non-Interest Expenses: | ' | ' | ' | ' |
Compensation and benefits | 23,771 | 17,992 | 87,141 | 122,325 |
Professional services | 3,663 | 2,393 | 11,025 | 9,228 |
Business development | 2,764 | 1,995 | 8,189 | 6,738 |
Clearing and brokerage fees | 1,155 | 940 | 3,516 | 3,852 |
Occupancy and equipment | 3,067 | 2,835 | 9,222 | 9,185 |
Communications | 2,873 | 2,567 | 8,621 | 8,313 |
Other operating expenses | 1,496 | 2,184 | 4,541 | 5,894 |
Total non-interest expenses | 38,789 | 30,906 | 132,255 | 165,535 |
Income from continuing operations before income taxes | 3,308 | 3,150 | 21,298 | 53,689 |
Income tax (benefit) provision | -193 | 361 | 5,211 | -23,880 |
Income from continuing operations, net of taxes | 3,501 | 2,789 | 16,087 | 77,569 |
Income from discontinued operations, net of taxes | ' | 3,622 | ' | 6,744 |
Net income | $3,501 | $6,411 | $16,087 | $84,313 |
Basic income per share: | ' | ' | ' | ' |
Income from continuing operations, net of taxes | $0.34 | $0.23 | $1.51 | $6.37 |
Income from discontinued operations, net of taxes | ' | $0.30 | ' | $0.55 |
Basic income per share | $0.34 | $0.53 | $1.51 | $6.92 |
Diluted income per share: | ' | ' | ' | ' |
Income from continuing operations, net of taxes | $0.31 | $0.21 | $1.36 | $5.90 |
Income from discontinued operations, net of taxes | ' | $0.27 | ' | $0.51 |
Diluted income per share | $0.31 | $0.48 | $1.36 | $6.41 |
Basic weighted average shares outstanding (in thousands) | 10,171 | 12,137 | 10,642 | 12,180 |
Diluted weighted average shares outstanding (in thousands) | 11,419 | 13,335 | 11,798 | 13,157 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $3,501 | $6,411 | $16,087 | $84,313 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Change in unrealized (loss) gain on available-for-sale investment securities, net of taxes of $(13), $475, $3, and $1,144, respectively | -20 | 883 | 4 | 2,124 |
Comprehensive income | $3,481 | $7,294 | $16,091 | $86,437 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Change in unrealized (loss) gain on available-for-sale investment securities, taxes | ($13) | $475 | $3 | $1,144 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Employee Stock Loan Receivable [Member] | Restricted Stock Units [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2012 | $239,864 | $12 | $402,668 | ($307) | $25,235 | ($1,094) | ($186,650) |
Beginning Balance, Shares at Dec. 31, 2012 | ' | 12,224,000 | ' | ' | ' | ' | ' |
Net income | 92,912 | ' | ' | ' | ' | ' | 92,912 |
Issuance of common stock, net of forfeitures | 1,500 | 1 | 14,880 | 307 | -13,688 | ' | ' |
Issuance of common stock, net of forfeitures, shares | ' | 699,000 | ' | ' | ' | ' | ' |
Repurchase of common stock | -55,541 | -2 | -55,539 | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | -2,378,000 | ' | ' | ' | ' | ' |
Stock compensation expense for options granted to purchase common stock | 974 | ' | 974 | ' | ' | ' | ' |
Issuance of restricted stock units | 9,940 | ' | ' | ' | 9,940 | ' | ' |
Other comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes | 1,128 | ' | ' | ' | ' | 1,128 | ' |
Ending Balance at Dec. 31, 2013 | 290,777 | 11 | 362,983 | 0 | 21,487 | 34 | -93,738 |
Ending Balance, Shares at Dec. 31, 2013 | ' | 10,545,000 | ' | ' | ' | ' | ' |
Net income | 16,087 | ' | ' | ' | ' | ' | 16,087 |
Issuance of common stock, net of forfeitures | 377 | ' | 3,518 | ' | -3,141 | ' | ' |
Issuance of common stock, net of forfeitures, shares | ' | 213,000 | ' | ' | ' | ' | ' |
Repurchase of common stock | -51,059 | -2 | -51,057 | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | -1,863,000 | ' | ' | ' | ' | ' |
Stock compensation expense for options granted to purchase common stock | 156 | ' | 156 | ' | ' | ' | ' |
Issuance of restricted stock units | 13,709 | ' | ' | ' | 13,709 | ' | ' |
Other comprehensive income: | ' | ' | ' | ' | ' | ' | ' |
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes | 4 | ' | ' | ' | ' | 4 | ' |
Ending Balance at Sep. 30, 2014 | $270,051 | $9 | $315,600 | $0 | $32,055 | $38 | ($77,651) |
Ending Balance, Shares at Sep. 30, 2014 | ' | 8,895,000 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $16,087 | $84,313 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Deferred income taxes | 5,625 | -26,186 |
Depreciation and amortization | 1,102 | 956 |
Stock compensation | 6,952 | 6,258 |
Net investment income from investments | -16,000 | -3,957 |
Gain on sale of assets | ' | -7,229 |
Other | 29 | 72 |
Receivables: | ' | ' |
Securities borrowed | -578,399 | ' |
Brokers, dealers and clearing organizations | -6,583 | -15,130 |
Customers | 1,059 | -8,702 |
Other | -2,288 | 1,299 |
Trading securities | -5,312 | 29,946 |
Prepaid expenses and other assets | 325 | 1,727 |
Changes in operating liabilities: | ' | ' |
Securities loaned | 581,003 | ' |
Trading securities sold but not yet purchased | -833 | -23,909 |
Accrued compensation and benefits | 1,375 | 46,015 |
Accounts payable, accrued expenses and other liabilities | 1,092 | -4,315 |
Brokers, dealers and clearing organizations | -8,701 | 14,598 |
Net cash (used in) provided by operating activities | -3,467 | 95,756 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -70,230 | -55,907 |
Proceeds from sales of and distributions from investments | 52,834 | 15,638 |
Securities sold but not yet purchased | 301,230 | ' |
Due from brokers, dealers and clearing organizations | -308,548 | ' |
Purchase of securities lending business | -1,000 | ' |
Purchases of furniture, equipment, software, and leasehold improvements | -6,748 | -373 |
Net cash used in investing activities | -32,462 | -40,642 |
Cash flows from financing activities: | ' | ' |
Repurchases of common stock | -51,059 | -32,700 |
Proceeds from sales of common stock and repayment of employee stock purchase plan | 1,601 | 4,383 |
Net cash used in financing activities | -49,458 | -28,317 |
Net (decrease) increase in cash and cash equivalents | -85,387 | 26,797 |
Cash and cash equivalents, beginning of period | 207,973 | 174,925 |
Cash and cash equivalents, end of period | 122,586 | 201,722 |
Supplemental Cash Flow Information: | ' | ' |
Income tax payments | 3,269 | 2,726 |
Interest payments | $12,588 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation: | |
The consolidated financial statements of FBR & Co. and subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. Therefore, they do not include all information required by accounting principles generally accepted in the United States of America for complete annual financial statements. The interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (“2013 Form 10-K”). | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although the Company bases its estimates and assumptions on historical experience and market information (when available) and on various other factors that it believes to be reasonable under the circumstances, management exercises significant judgment in the final determination of its estimates. Actual results may differ from those estimates. | |
Revision to Previously Reported Financial Statements | |
As previously disclosed by the Company and as presented in its 2013 Form 10-K, the Company has revised its financial statements for nine months ended September 30, 2013 in this quarterly report on Form 10-Q. The revision reduced the previously reported nine months ended September 30, 2013 tax benefit by $3,891, net income by $3,891, basic earnings per share by $0.32 and diluted earnings per share by $0.29. |
Financial_Instruments_and_Long
Financial Instruments and Long-Term Investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Financial Instruments and Long-Term Investments | ' | ||||||||||||||||
2. Financial Instruments and Long-Term Investments: | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) as described below: | |||||||||||||||||
Level 1 Inputs | — | Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company; | |||||||||||||||
Level 2 Inputs | — | Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; | |||||||||||||||
Level 3 Inputs | — | Unobservable inputs for the asset or liability, including significant assumptions of the Company and other market participants. | |||||||||||||||
The Company determines fair values for the following assets and liabilities: | |||||||||||||||||
Equity securities, listed options and warrants—The Company classifies marketable equity securities and listed options within Level 1 of the fair value hierarchy because quoted market prices from an exchange are used to value these securities. Non-public equity securities, which primarily include securities where the Company acted as a placement agent in an offering of equity securities and where the Company facilitates over-the-counter trading activity for the securities, are classified within Level 3 of the fair value hierarchy. In determining the fair value of these securities, the Company considers enterprise value and analyzes various financial, performance and market factors to estimate the value, including where applicable over-the-counter market trading activity. Non-exchange traded warrants to purchase equity securities are classified as Level 3 as a Black-Scholes valuation model is used to value these securities. | |||||||||||||||||
U.S. government securities, convertible and fixed income debt instruments—The Company classifies U.S government securities, including highly liquid U.S. Treasury securities within Level 1 as quoted prices are used to value these securities. Convertible and fixed income debt instruments are classified within Level 2 of the fair value hierarchy as they are valued using quoted market prices provided by a broker or dealer, or alternative pricing services that provide reasonable levels of price transparency. The Company primarily uses price quotes from one independent broker dealer who makes markets in or is a specialist with expertise in the valuation of these financial instruments. The Company reviews broker or pricing service quotes it receives to assess the reasonableness of the values provided, such reviews include comparison to internal pricing models and, when available, prices observed for recently executed market transactions of comparable size. Based on this assessment, at each reporting date the Company will adjust price quotes it receives if such an adjustment is determined to be appropriate. | |||||||||||||||||
Investment Funds—The Company invests in proprietary investment funds that are valued at net asset value (“NAV”) determined by the fund administrator. For investments in non-registered investment companies (private equity, debt funds and fund of funds), the Company classifies these investments within Level 3 as the underlying securities held by these investment companies are primarily corporate and asset-backed fixed income securities and restrictions exist on the redemption of amounts invested by the Company. As a practical expedient, the Company relies on the NAV of these investments as their fair value. The NAVs that have been provided by investees are derived from the fair values of the underlying investments as of the reporting date. As of September 30, 2014, the Company’s $104,804 of investments in non-registered investment funds were subject to various redemption provisions. Approximately 78% of the fair value amount of the funds was redeemable on at least a three month period basis primarily with a notice period of 90 days or less. At September 30, 2014, 25% of the fair value amount of these funds was subject to early withdrawal fees of 5% or less, all of which expire during 2014. Additionally, approximately 81% of the fair value amount of these funds was subject to redemption holdbacks of 10% or less. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, financial instruments accounted for under ASC 820 as of September 30, 2014 and December 31, 2013. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||
September 30, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2014 | |||||||||||||||||
Financial instruments owned, at fair value: | |||||||||||||||||
Financial instruments held for trading activities at broker-dealer subsidiary: | |||||||||||||||||
Marketable and non-public equity securities | $ | 16,259 | $ | 16,190 | $ | — | $ | 69 | |||||||||
Listed options | 10 | 10 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 47,239 | — | 47,239 | — | |||||||||||||
63,508 | 16,200 | 47,239 | 69 | ||||||||||||||
Financial instruments held for investment activities: | |||||||||||||||||
Designated as trading: | |||||||||||||||||
Marketable and non-public equity securities | 7,483 | 5,247 | — | 2,236 | |||||||||||||
Warrants | 904 | — | — | 904 | |||||||||||||
Designated as available-for-sale: | |||||||||||||||||
Marketable equity securities | 163 | 163 | — | — | |||||||||||||
8,550 | 5,410 | — | 3,140 | ||||||||||||||
Investment Funds | 104,804 | — | — | 104,804 | |||||||||||||
Total | $ | 176,862 | $ | 21,610 | $ | 47,239 | $ | 108,013 | |||||||||
Securities sold but not yet purchased, at fair value: | |||||||||||||||||
U.S. Treasury securities | $ | 293,873 | $ | 293,873 | $ | — | $ | — | |||||||||
Marketable equity securities | 36,932 | 36,932 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 4,476 | — | 4,476 | — | |||||||||||||
Total | $ | 335,281 | $ | 330,805 | $ | 4,476 | $ | — | |||||||||
As of September 30, 2014, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $108,013, or 8.6% of the Company’s total assets at that date. Regarding these Level 3 financial assets, in determining fair value, the Company analyzes various financial, performance and market factors to estimate the value, including for non-public equity securities, over-the-counter market trading activity. The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of September 30, 2014: | |||||||||||||||||
Valuation Technique | Fair Value | Unobservable Input | Range | Weighted | |||||||||||||
Average | |||||||||||||||||
Market approach—assets | $ | 2,305 | Over-the counter trading activity | $0.36 – $25.00/share | $ | 12.02 | |||||||||||
Black-Scholes—assets | $ | 904 | Volatility | 30 | % | 30 | % | ||||||||||
Dividend Yield | 0 | % | 0 | % | |||||||||||||
Interest Rate | 2.4 | % | 2.4 | % | |||||||||||||
For those non-public equity securities valued using a market approach, adverse industry market conditions or events experienced by the underlying entities could result in lower over-the-counter trading prices for the securities. Such lower trading prices would result in a decline in the estimated fair value of these assets. For warrants valued using Black-Scholes, adverse industry market conditions or events experienced by the issuer could result in a lower trading price for the underlying equity security and therefore a lower value of these warrants. A reduction in the estimated volatility would also result in a lower value of the warrants. The Company assessed the reasonableness of the fair values of the non-public equity securities noted above based on its consideration of available financial data related to these issuers as well as an assessment of the nature of any over-the-counter trading activity during the period. The Company assessed the reasonableness of the fair value of the non-exchange traded warrants valued using a Black-Scholes valuation based on its consideration of the fair values of comparable exchange-traded options. | |||||||||||||||||
The table above excludes $104,804 of investments in 20 non-registered investment funds that are valued at NAV as determined by the fund administrators. The underlying fund investments consist primarily of corporate and asset-backed fixed income securities. Considering the general lack of transparency necessary to conduct an independent assessment of the fair value of the securities underlying each of the NAVs provided by the fund administrators, our quarterly reporting process includes a number of assessment processes to assist the Company in the evaluation of the information provided by fund managers and fund administrators. These assessment processes include, but are not limited to, regular review and discussion of each fund’s performance with its manager and regular evaluation of performance against applicable benchmarks. | |||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Financial instruments owned, at fair value: | |||||||||||||||||
Financial instruments held for trading activities at broker-dealer subsidiary: | |||||||||||||||||
Marketable and non-public equity securities | $ | 25,402 | $ | 22,054 | $ | — | $ | 3,348 | |||||||||
Listed options | 771 | 771 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 32,024 | — | 32,024 | — | |||||||||||||
58,197 | 22,825 | 32,024 | 3,348 | ||||||||||||||
Financial instruments held for investment activities: | |||||||||||||||||
Designated as trading: | |||||||||||||||||
Marketable and non-public equity securities | 21,142 | 14,951 | — | 6,191 | |||||||||||||
Warrants | 1,996 | — | — | 1,996 | |||||||||||||
Fixed income debt instruments | 2,055 | — | 2,055 | — | |||||||||||||
Designated as available-for-sale: | |||||||||||||||||
Marketable equity securities | 156 | 156 | — | — | |||||||||||||
25,349 | 15,107 | 2,055 | 8,187 | ||||||||||||||
Investment Funds | 61,197 | — | — | 61,197 | |||||||||||||
Total | $ | 144,743 | $ | 37,932 | $ | 34,079 | $ | 72,732 | |||||||||
Securities sold but not yet purchased, at fair value: | |||||||||||||||||
Marketable and non-public equity securities | $ | 35,720 | $ | 34,221 | $ | — | $ | 1,499 | |||||||||
Listed options | 354 | 354 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 6,167 | — | 6,167 | — | |||||||||||||
Total | $ | 42,241 | $ | 34,575 | $ | 6,167 | $ | 1,499 | |||||||||
As of December 31, 2013, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $72,732, or 17.7% of the Company’s total assets at that date. As of December 31, 2013, financial liabilities measured and reported at fair value on a recurring basis and classified within Level 3 were $1,499, or 1.3% of the Company’s total liabilities at the date. Regarding these Level 3 financial assets and financial liabilities, in determining fair value, the Company analyzes various financial, performance and market factors to estimate the value, including where applicable over-the-counter market trading activity. The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of December 31, 2013: | |||||||||||||||||
Valuation Technique | Fair Value | Unobservable Input | Range | Weighted | |||||||||||||
Average | |||||||||||||||||
Market approach—assets | $ | 9,539 | Over-the-counter trading activity | $ | 0.77 – $19.00/share | $ | 13.44 | ||||||||||
Market approach—liabilities | $ | 1,499 | Over-the-counter trading activity | $ | 65.15/share | $ | 65.15 | ||||||||||
Black-Scholes—assets | $ | 1,996 | Volatility | 30 | % | 30 | % | ||||||||||
Dividend Yield | 0 | % | 0 | % | |||||||||||||
Interest Rate | 2.9 | % | 2.9 | % | |||||||||||||
For those non-public equity securities valued using a market approach, adverse industry market conditions or events experienced by the underlying entities could result in lower over-the-counter trading prices for the securities. Such lower trading prices would result in a decline in the estimated fair value of these assets. An increase in the trading prices of trading securities sold but not yet purchased would result in an increase in the estimated fair value of these liabilities. For warrants valued using Black-Scholes, adverse industry market conditions or events experienced by the issuer could result in a lower trading price for the underlying equity security and therefore a lower value of these warrants. A reduction in the estimated volatility would also result in a lower value of the warrants. The Company assessed the reasonableness of the fair values of the non-public equity securities noted above based on its consideration of available financial data related to these issuers as well as an assessment of the nature of any over-the-counter trading activity during the period. The Company assessed the reasonableness of the fair value of the non-exchange traded warrants valued using a Black-Scholes valuation based on its consideration of the fair values of comparable exchange-traded options. | |||||||||||||||||
The table above excludes $61,197 of investments in 14 non-registered investment funds that are valued at NAV as determined by the fund administrators. The underlying fund investments consist primarily of corporate and asset-backed fixed income securities. Considering the general lack of transparency necessary to conduct an independent assessment of the fair value of the securities underlying each of the NAVs provided by the fund administrators, our quarterly reporting process includes a number of assessment processes to assist the Company in the evaluation of the information provided by fund managers and fund administrators. These assessment processes include, but are not limited to, regular review and discussion of each fund’s performance with its manager and regular evaluation of performance against applicable benchmarks. | |||||||||||||||||
Level 3 Gains and Losses | |||||||||||||||||
The tables below set forth a summary of changes in the fair value of the Company’s Level 3 financial assets that are measured at fair value on a recurring basis for the three months ended September 30, 2014 and 2013. As of September 30, 2014 and 2013, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. | |||||||||||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, July 1, 2014 | $ | 9,486 | $ | 93,290 | $ | 102,776 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | (356 | ) | (137 | ) | (493 | ) | |||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 46,241 | 19,057 | 65,298 | ||||||||||||||
Sales/Distributions | (52,162 | ) | (7,406 | ) | (59,568 | ) | |||||||||||
Transfers out of level 3 | — | — | — | ||||||||||||||
Ending balance, September 30, 2014 | $ | 3,209 | $ | 104,804 | $ | 108,013 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | (408 | ) | $ | (66 | ) | $ | (474 | ) | ||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, July 1, 2013 | $ | 10,201 | $ | 28,733 | $ | 38,934 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | 814 | 399 | 1,213 | ||||||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 154,921 | 22,500 | 177,421 | ||||||||||||||
Sales/Distributions | (155,830 | ) | (118 | ) | (155,948 | ) | |||||||||||
Transfers out of level 3 | — | — | — | ||||||||||||||
Ending balance, September 30, 2013 | $ | 10,106 | $ | 51,514 | $ | 61,620 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 343 | $ | 399 | $ | 742 | |||||||||||
There were no transfers into, or out of Level 1, 2 and 3 financial assets during the three months ended September 30, 2014 and 2013. | |||||||||||||||||
The tables below set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Trading | Trading Securities | Investment | Total | ||||||||||||||
Securities | Sold not yet | Funds | |||||||||||||||
Purchased | |||||||||||||||||
Beginning balance, January 1, 2014 | $ | 11,535 | $ | (1,499 | ) | $ | 61,197 | $ | 71,233 | ||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | (268 | ) | (122 | ) | 3,755 | 3,365 | |||||||||||
Included in other comprehensive income | — | — | — | — | |||||||||||||
Purchases | 95,020 | 6,043 | 47,544 | 148,607 | |||||||||||||
Sales/Distributions | (96,829 | ) | (4,422 | ) | (7,692 | ) | (108,943 | ) | |||||||||
Transfers out of level 3 | (6,249 | ) | — | — | (6,249 | ) | |||||||||||
Ending balance, September 30, 2014 | $ | 3,209 | $ | — | $ | 104,804 | $ | 108,013 | |||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 311 | $ | — | $ | 4,190 | $ | 4,501 | |||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, January 1, 2013 | $ | 2,615 | $ | 17,600 | $ | 20,215 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | 3,050 | 2,556 | 5,606 | ||||||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 391,131 | 31,500 | 422,631 | ||||||||||||||
Sales/Distributions | (385,524 | ) | (142 | ) | (385,666 | ) | |||||||||||
Transfers out of level 3 | (1,166 | ) | — | (1,166 | ) | ||||||||||||
Ending balance, September 30, 2013 | $ | 10,106 | $ | 51,514 | $ | 61,620 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 2,191 | $ | 2,556 | $ | 4,747 | |||||||||||
There were no transfers of securities into, or out of, Level 2 financial assets during the nine months ended September 30, 2014. Two transfers were made out of Level 3 and into Level 1 during the nine months ended September 30, 2014 for two equity securities that were each previously a non-public equity security and during the period became publicly traded. | |||||||||||||||||
There were no transfers of securities into, or out of, Level 2 financial assets during the nine months ended September 30, 2013. One transfer was made out of Level 3 and into Level 1 during the nine months ended September 30, 2013 for an equity security that was previously a non-public equity security and during the period became publicly traded. | |||||||||||||||||
Gains and losses from Level 3 financial assets that are measured at fair value on a recurring basis, included in earnings for the three and nine months ended September 30, 2014 and 2013, are reported in the following line descriptions on the Company’s statements of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total gains and losses included in earnings for the period: | |||||||||||||||||
Institutional brokerage | $ | (4 | ) | $ | 496 | $ | (1 | ) | $ | 983 | |||||||
Net investment income | (489 | ) | 717 | 3,366 | 4,623 | ||||||||||||
Change in unrealized gains or losses relating to assets still held at the end of the respective period: | |||||||||||||||||
Institutional brokerage | $ | 9 | $ | 25 | $ | (20 | ) | $ | 153 | ||||||||
Net investment income | (483 | ) | 717 | 4,521 | 4,594 | ||||||||||||
Financial Instruments Held for Investment—Designated as Trading | |||||||||||||||||
As of September 30, 2014, and during the year ended December 31, 2013, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiary that were classified as trading securities. In addition, as of September 30, 2014, the Company had short positions in U.S. Treasury securities held by other than its broker-dealer subsidiary that were classified as trading securities. These investments are designated as trading based on the Company’s intent at the time of designation. In accordance with ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”), these securities are carried at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the statements of operations. In addition, pursuant to ASC 825, “Financial Instruments” (“ASC 825”), from time-to-time the Company may elect to account for non-public equity securities acquired by other than the Company’s broker-dealer subsidiary as part of its trading portfolio at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the statements of operations. The Company did not make any such fair value elections during the three months ended September 30, 2014, however, during the nine months ended September 30, 2014, the Company elected to account for two non-public equity securities, purchased at a cost of $6,148, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net gains recognized on trading securities | $ | 3,578 | $ | 155 | $ | 11,628 | $ | 1,171 | |||||||||
Less: Net (gains) losses recognized on trading securities sold during the period | 169 | 361 | (872 | ) | (262 | ) | |||||||||||
Unrealized gains recognized on trading securities still held at the reporting date | $ | 3,747 | $ | 516 | $ | 10,756 | $ | 909 | |||||||||
As part of the Company’s investing activities, during the three months ended June 30, 2014 the Company entered into one short-sale of a $75,000 face value 7.25% U.S. Treasury security, and during the three months ended March 31, 2014 the Company entered into two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities. These securities mature in May 2016, November 2015 and February 2016, respectively. These positions are included in securities sold but not yet purchased on the Company’s balance sheet as of September 30, 2014. Proceeds from these short-sales, as well as related margin requirements, are held in a collateral account and are included in due from brokers, dealers and clearing organizations in the Company’s balance sheet. Such amounts are not available for withdrawal and are subject to closure of the open short positions. During the three and nine months ended September 30, 2014, the Company incurred $3,668 and $8,428, respectively, of interest expense related to these transactions. The Company is obligated to fund the fixed-rate coupon interest on these securities while the short-positions are outstanding. | |||||||||||||||||
Financial Instruments Held for Investment—Designated as Available-for-Sale | |||||||||||||||||
As of September 30, 2014 and December 31, 2013, the Company had certain investments in marketable equity securities held by other than the Company’s broker-dealer subsidiary that are classified as available-for-sale securities. These investments are designated as available-for-sale due to the Company’s intent at the time of designation to hold these securities for investment purposes over an extended period. However, these investments are available to be sold should economic conditions warrant such a transaction. In accordance with ASC 320, these securities are carried at fair value with resulting unrealized gains and losses reflected as other comprehensive income or loss. Gross unrealized gains and losses on these securities as of the dates indicated were as follows: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Cost | Unrealized | Fair Value | |||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 108 | $ | 55 | $ | 0 | $ | 163 | |||||||||
December 31, 2013 | |||||||||||||||||
Cost | Unrealized | Fair Value | |||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 108 | $ | 48 | $ | 0 | $ | 156 | |||||||||
The Company evaluates its portfolio of marketable equity securities for impairment as of each reporting date. For the securities with unrealized losses, the Company will review the underlying cause for the impairments, as well as the severity and duration of the impairments. If the impairment is determined to be other-than-temporary, the Company will recognize an other-than-temporary impairment loss in its statement of operations. The Company did not recognize any other-than-temporary impairment losses during the three and nine months ended September 30, 2014, and as of September 30, 2014, the Company did not hold any marketable securities that were in an unrealized loss position. During the three months ended September 30, 2013, the Company did not recognize any other-than-temporary impairment losses, however during the nine months ended September 30, 2013, the Company recorded an other-than-temporary impairment charge of $545 related to an investment in a company in the financial services industry. The Company recognized this impairment charge as a result of a change in its intent to hold this investment for a period of time sufficient for a forecasted recovery of its fair value. In this case the change in intent was a result of changes in market conditions during the first quarter of 2013 specific to this investment. The carrying value of this investment subsequent to the impairment was $4,257. | |||||||||||||||||
There were no sales of marketable securities during the three and nine months ended September 30, 2014, or during the three months ended September 30, 2013. During the nine months ended September 30, 2013, the Company received proceeds of $4,225 from sales of marketable equity securities resulting in gross losses of $(32). | |||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
The following tables set forth the changes in the Company’s accumulated other comprehensive income (loss) by component for the period indicated along with detail regarding reclassifications from other comprehensive income (loss). All such reclassifications from other comprehensive income (loss) are included in net investment income in the Company’s consolidated statements of operations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Accumulated other comprehensive income (loss), beginning balance | $ | 58 | $ | 147 | $ | 34 | $ | (1,094 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (20 | ) | 883 | 4 | 1,615 | ||||||||||||
Amounts reclassified from other comprehensive income | — | — | — | 509 | |||||||||||||
Accumulated other comprehensive income, at period end | $ | 38 | $ | 1,030 | $ | 38 | $ | 1,030 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reclassifications from other comprehensive income (loss) | |||||||||||||||||
Other-than-temporary impairment loss | $ | — | $ | — | $ | — | $ | 545 | |||||||||
Realized gains on sale of securities | — | — | — | (36 | ) | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | 509 | |||||||||
Other Investments, at Cost | |||||||||||||||||
Other investments consisted of the following as of the dates indicated: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Non-public equity securities | $ | 7,000 | $ | 2,681 | |||||||||||||
Corporate debt investments | — | 5,000 | |||||||||||||||
$ | 7,000 | $ | 7,681 | ||||||||||||||
The Company evaluates its non-public equity securities and corporate debt investments, carried at cost, for impairment as of each reporting date. This evaluation includes consideration of the operating performance of the respective companies, their financial condition and their near-term and long-term prospects. Based on its evaluations of these investments, the Company recorded no impairment losses during the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
During the three months ended September 30, 2014 and the three and nine months ended September 30, 2013, there were no sales of non-public equity securities or corporate debt investments carried at cost. During the nine months ended September 30, 2014, the Company received proceeds of $1,428 from the sale of a non-public equity security resulting in a gross gain of $1,176. During the nine months ended September 30, 2014, the Company received $5,000 reflecting the full repayment at its maturity of a corporate debt investment. In addition, during the three and nine months ended September 30, 2014, a non-public equity security carried at cost with a basis of $428 became publicly traded during the period. The Company designated this security as trading at the time it became publicly traded. During the nine months ended September 30, 2013, the Company received $317 from the maturity of a note receivable that was carried at cost. In addition, during the nine months ended September 30, 2013, a non-public equity security carried at cost with a basis of $2,390 became publicly traded during the period. The Company designated this security as trading at the time it became publicly traded. |
Securities_Lending
Securities Lending | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Securities Lending | ' | ||||||||||||||||||||
3. Securities Lending: | |||||||||||||||||||||
On March 27, 2014, the Company entered into a Transaction Agreement with Lazard Capital Markets LLC (“LCM”) pursuant to which FBR Capital Markets & Co. (“FBRCM”), the Company’s broker-dealer subsidiary, agreed to purchase LCM’s securities lending business (the “Transaction Agreement”) and on August 4, 2014, the Company completed its purchase of this securities lending business. Pursuant to the terms of the Transaction Agreement, the Company made an initial cash payment of $1,000 at closing and is obligated to make additional payments that are contingent on the performance of the business over the next 18 months. As described below, as of September 30, 2014, the Company has estimated these aggregate contingent payments to be $4,070. The Company will continue to assess the value of this contingent consideration at each reporting date until its obligations are satisfied. | |||||||||||||||||||||
As a result of this acquisition, the Company has an active securities borrowed and loaned business in which it borrows securities from one party and lends them to another. The securities lending business is included within the Company’s institutional sales, trading and research operations in the Company’s capital markets segment. Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. A substantial portion of the Company’s interest revenue and interest expense results from these activities. | |||||||||||||||||||||
The Company accounts for securities lending transactions in accordance with ASU 2013-01, Balance Sheet (Topic 210): “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” requiring companies to report disclosures of offsetting assets and liabilities. The Company does not net securities borrowed and securities loaned and these items are presented on a gross basis in the balance sheets. The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of September 30, 2014. | |||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts | Amounts not | Net amounts | |||||||||||||||||
Recognized | offset in the | included in the | offset in the | ||||||||||||||||||
Consolidated | Consolidated | Balance Sheet | |||||||||||||||||||
Balance Sheets(1) | Balance Sheets | but eligible for | |||||||||||||||||||
offsetting upon | |||||||||||||||||||||
counterparty | |||||||||||||||||||||
default(2) | |||||||||||||||||||||
Securities borrowed | $ | 578,399 | $ | — | $ | 578,399 | $ | 578,399 | $ | — | |||||||||||
Securities loaned | $ | 581,003 | $ | — | $ | 581,003 | $ | 581,003 | $ | — | |||||||||||
-1 | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||||||||||||||||||||
-2 | Includes the amount of cash collateral held/posted. | ||||||||||||||||||||
The Company accounted for its acquisition of LCM’s securities lending business in accordance with ASC 805, “Business Combinations” (“ASC 805”), using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. The Company’s estimate of contingent consideration and estimates of fair value included in the financial statements, in conformity with ASC 820, represent the Company’s best estimates and valuations. These estimates and underlying assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in its valuations will be realized, and actual results could vary materially. The table below summarizes the preliminary estimates of contingent consideration, and the fair value of the assets acquired and liabilities assumed as of the acquisition date. | |||||||||||||||||||||
Purchase Price: | |||||||||||||||||||||
Cash paid | $ | 1,000 | |||||||||||||||||||
Estimated contingent consideration | 4,070 | ||||||||||||||||||||
Total | $ | 5,070 | |||||||||||||||||||
Fair Value of Assets Acquired: | |||||||||||||||||||||
Securities borrowed | $ | 583,923 | |||||||||||||||||||
Due from brokers, dealers and clearing organizations | 185 | ||||||||||||||||||||
Total | $ | 584,108 | |||||||||||||||||||
Fair Value of Liabilities Assumed: | |||||||||||||||||||||
Securities loaned | $ | 584,108 | |||||||||||||||||||
Purchase price to be allocated to goodwill and intangible assets | $ | 5,070 | |||||||||||||||||||
The goodwill and intangible asset balances are included in the Company’s capital markets segment and this entire balance is expected to be deductible for tax purposes. The Company is in the process of completing its intangible asset appraisals related to this acquisition. In accordance with ASC 805, if additional information is obtained about these assets within the measurement period (not to exceed one year from the date of acquisition), including finalization of asset appraisals, the Company will refine its estimates of fair value to allocate the purchase price more accurately. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
4. Income Taxes: | |
During the three and nine months ended September 30, 2014, the Company recorded a tax benefit of $193 and a tax provision of $5,211, respectively. The Company’s quarterly tax provision is determined pursuant to ASC 740, “Income Taxes” (“ASC 740”), which requires using an estimated annual effective rate based on forecasted taxable income for the full year. The Company’s effective tax rates for the three and nine months ended September 30, 2014 were (5.8)% and 24.5%, respectively. The Company’s 2014 tax rate differed from statutory tax rates primarily due to capital loss carryforwards subject to a valuation allowance that are projected to be utilized during the year. As a result of the valuation allowance release discussed in more detail below, during the three and nine months ended September 30, 2013, the Company recorded an income tax provision of $361 and an income tax benefit of $23,880, respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2013 were 11.5% and (44.5)%, respectively. These tax rates differed from statutory tax rates primarily due to the effects of the valuation allowance reversal. | |
During the three months ended June 30, 2013, the Company released a significant component of its valuation allowance against its net deferred tax assets since, based on the application of the criteria in ASC 740, it concluded that it was more likely than not that the benefits of these assets would be realized in the future. Following the criteria in ASC 740, the Company reviews this valuation allowance on a quarterly basis assessing the positive and negative evidence to determine if it is more likely than not that some or all of the deferred tax assets will be realized. The Company’s operating results since June 30, 2013 have provided additional positive evidence in support of the valuation allowance release. As of June 30, 2013 and subsequently, as described below, the Company’s valuation allowance for its deferred tax assets relates to capital loss carryforwards and net unrealized losses on investments. Realization of the Company’s deferred tax assets not subject to a valuation allowance is dependent on the Company’s prospective operating performance and its ability to generate positive operating results. | |
At December 31, 2013, the Company’s net deferred tax assets totaled $49,165 and were partially offset by a valuation allowance of $18,272. This valuation allowance related to capital loss carryforwards and net unrealized losses on investments and was determined based on the Company’s application of the guidance in ASC 740 and its conclusion that it was more likely than not that the benefits of these assets would not be realized in the future. Based on its assessment as of September 30, 2014, the Company determined that a valuation allowance related to its capital loss carryforwards and net unrealized losses on investments continued to be appropriate. As of September 30, 2014, these deferred tax assets and related valuation allowance totaled approximately $14,100. Recognition of these deferred tax assets will be dependent on the Company’s ability to generate capital gains. |
Net_Capital_Requirements
Net Capital Requirements | 9 Months Ended |
Sep. 30, 2014 | |
Text Block [Abstract] | ' |
Net Capital Requirements | ' |
5. Net Capital Requirements: | |
FBRCM is registered with the Securities and Exchange Commission (“SEC”) and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). As such, it is subject to the minimum net capital requirements promulgated by the SEC. As of September 30, 2014, FBRCM had net capital of $63,096 which was $58,440 in excess of its required net capital of $4,656. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
6. Earnings Per Share: | |||||||||||||||||
Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share includes the impact of dilutive securities such as stock options, unvested shares of restricted stock and restricted stock units (“RSUs”), all of which are subject to forfeiture. The following table presents the computations of basic and diluted earnings per share for the periods indicated: | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Common stock (in thousands) | 10,171 | 10,171 | 12,137 | 12,137 | |||||||||||||
Stock options, unvested restricted stock and unvested RSUs (in thousands) | — | 1,248 | — | 1,198 | |||||||||||||
Weighted average common and common equivalent shares outstanding (in thousands) | 10,171 | 11,419 | 12,137 | 13,335 | |||||||||||||
Net income applicable to common stock | $ | 3,501 | $ | 3,501 | $ | 6,411 | $ | 6,411 | |||||||||
Net income per common share | $ | 0.34 | $ | 0.31 | $ | 0.53 | $ | 0.48 | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Common stock (in thousands) | 10,642 | 10,642 | 12,180 | 12,180 | |||||||||||||
Stock options, unvested restricted stock and unvested RSUs (in thousands) | — | 1,156 | — | 977 | |||||||||||||
Weighted average common and common equivalent shares outstanding (in thousands) | 10,642 | 11,798 | 12,180 | 13,157 | |||||||||||||
Net income applicable to common stock | $ | 16,087 | $ | 16,087 | $ | 84,313 | $ | 84,313 | |||||||||
Net income per common share | $ | 1.51 | $ | 1.36 | $ | 6.92 | $ | 6.41 | |||||||||
The following table presents the number of anti-dilutive stock options, unvested restricted stock and unvested RSUs for the periods indicated (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options—employees and directors | 694 | 776 | 720 | 855 | |||||||||||||
Stock options—non-employee | 26 | 196 | 27 | 216 | |||||||||||||
Restricted stock, unvested | 9 | 8 | 10 | 9 | |||||||||||||
RSUs, unvested | 1,048 | 977 | 1,113 | 1,097 | |||||||||||||
1,777 | 1,957 | 1,870 | 2,177 | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
7. Commitments and Contingencies: | |
Litigation | |
As of September 30, 2014, the Company was neither a defendant nor plaintiff in any lawsuits or arbitrations nor involved in any governmental or self-regulatory organization matters that are expected to have a material adverse effect on its financial condition, results of operations or liquidity. The Company has been named as a defendant in a small number of civil lawsuits relating to its various businesses. In addition, the Company is subject to various reviews, examinations, investigations and other inquiries by governmental agencies and self regulatory organizations. There can be no assurance that these matters individually or in aggregate will not have a material adverse effect on the Company’s financial condition, results of operations, or liquidity in a future period. However, based on management’s review with counsel, resolution of these matters is not expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. | |
Many aspects of the Company’s business involve substantial risks of liability and litigation. Underwriters, broker-dealers and investment advisers are exposed to liability under Federal and state securities laws, other Federal and state laws and court decisions, including decisions with respect to underwriters’ liability and limitations on indemnification, as well as with respect to the handling of customer accounts. For example, underwriters may be held liable for material misstatements or omissions of fact in a prospectus used in connection with the securities being offered and broker-dealers may be held liable for statements made by their securities analysts or other personnel. In the past, FBRCM has been named as a defendant in a small number of securities claims involving investment banking clients of FBRCM as a result of FBRCM’s role as an underwriter. In these cases, the underwriting agreement provides, subject to certain conditions, that the investment banking client is required to indemnify FBRCM against certain claims or liabilities, including claims or liabilities under the Securities Act of 1933, as amended (the “Securities Act”), or contribute to payments which FBRCM is required to make as a result of the litigation. There can be no assurance that such indemnification or contribution will ultimately be available to the Company or that an investment banking client will be able to satisfy its indemnity or contribution obligations when due. | |
In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, management, in conjunction with counsel, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. | |
In certain circumstances, broker-dealers and asset managers may also be held liable by customers and clients for losses sustained on investments. In recent years, there has been an increasing incidence of litigation and actions by government agencies and self regulatory organizations involving the securities industry, including class actions that seek substantial damages. The Company is also subject to the risk of litigation, including litigation that may be without merit. As the Company intends to actively defend any such litigation, significant legal expenses could be incurred. An adverse resolution of any future litigation against the Company could materially affect its financial condition, operating results and liquidity. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||
8. Shareholders’ Equity: | |||||||||||||||||||||||||
Share Repurchases | |||||||||||||||||||||||||
In August 2014, the Company completed a tender offer to repurchase shares of its common stock. Pursuant to the modified “Dutch auction” tender offer, the Company repurchased 1,201,897 shares of its common stock at a weighted average share price of $28.06 per share for a total cost, including transaction costs, of $33,730. There were no other share repurchases during the three months ended September 30, 2014. | |||||||||||||||||||||||||
In addition to the shares repurchased pursuant to the tender offer that was completed in August 2014, during the nine months ended September 30, 2014, the Company repurchased 662,012 shares of its common stock in open market or privately negotiated transactions at weighted average share prices of $26.18 per share for a total cost, including transaction costs, of $17,329. As of September 30, 2014, the Company had remaining authority to repurchase 953,654 additional shares. | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2013, the Company repurchased 776,728 shares and 1,492,265 shares, respectively, of its common stock primarily in privately negotiated or open market transactions at weighted average share prices of $26.28 per share and $21.91 per share, respectively, for a total cost, including transaction costs, of $20,416 and $32,700, respectively. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
Under the Company’s Employee Stock Purchase Plan (the “Purchase Plan”), eligible employees may purchase common stock through payroll deductions at a price that is 85% of the lower of the market value of the common stock on the first day of the offering period or the last day of the offering period. In accordance with the provisions of ASC 718, “Compensation—Stock Compensation,” the Company is required to recognize compensation expense relating to shares offered under the Purchase Plan. For the three and nine months ended September 30, 2014, the Company recognized compensation expense of $32 and $220, respectively. For the three and nine months ended September 30, 2013, the Company recognized compensation expense of $29 and $192, respectively. | |||||||||||||||||||||||||
Stock Compensation Plans | |||||||||||||||||||||||||
FBR & Co. Amended 2006 Long-Term Incentive Plan (“FBR & Co. Long-Term Incentive Plan”) | |||||||||||||||||||||||||
Under the FBR & Co. Long-Term Incentive Plan, as amended, the Company may grant options to purchase stock, stock appreciation rights, performance awards, restricted and unrestricted stock and RSUs for up to an aggregate of 7,217,496 shares of common stock, subject to increase under certain provisions of the plan, to eligible participants. Participants include employees, officers and directors of the Company and its subsidiaries. The plan’s termination date is October 22, 2023 unless it is terminated sooner by the Company’s Board of Directors. The FBR & Co. Long-Term Incentive Plan has a term of 10 years and options granted may have an exercise period of up to 10 years. Options may be incentive stock options, as defined by Section 422 of the Internal Revenue Code, or nonqualified stock options. | |||||||||||||||||||||||||
The Company grants options to purchase stock, restricted shares of common stock and RSUs to employees that vest based on meeting specified service conditions of three to five years and in certain cases achievement of specified market conditions or performance goals. The following table presents compensation expense related to these awards for the periods indicated: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Stock options | $ | 21 | $ | 96 | $ | (64 | ) | $ | 429 | ||||||||||||||||
Restricted shares | $ | 80 | $ | 63 | $ | 216 | $ | 83 | |||||||||||||||||
RSUs | $ | 2,373 | $ | 2,025 | $ | 6,581 | $ | 5,536 | |||||||||||||||||
The following table presents issuance activity related to grants of these awards for the period indicated: | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Stock | Restricted | RSUs | Stock | Restricted | RSUs | ||||||||||||||||||||
Options | Shares | Options | Shares | ||||||||||||||||||||||
Stock-based award issuances | — | — | 8,000 | — | 12,218 | 314,676 | |||||||||||||||||||
Grant date fair value per share | $ | — | $ | — | $ | 27.52 | $ | — | $ | 26.19 | $ | 24.22 | |||||||||||||
Included in the RSUs granted during the nine months ended September 30, 2014 are 277,405 RSU awards that will vest based on both individual service requirements and the Company’s achievement of specified performance goals. These awards will vest at the following rates based on acheivement of the following performance goals: (1) a 50% rate on December 31, 2016 if the tangible book value of the Company, measured on a per share basis, has increased by an amount equal to a 6% compound annual growth rate over the three-year period beginning on January 1, 2014; (2) a 100% rate if the tangible book value of the Company, measured on a per share basis, has increased by an amount equal to a 9% compound annual growth rate over the performance period; and (3) a proportional rate between 50% and 100% in the event the tangible book value of the Company, measured on a per share basis, has increased by an amount between a 6% and a 9% compound annual growth rate over the performance period. In the event the tangible book value of the Company, measured on a per share basis, has not increased by an amount equal to a 6% compound annual growth rate over the performance period, no performance share units will be earned and the award will be forfeited. During the three and nine months ended September 30, 2014, compensation was recognized based on the Company’s assessment that the awards would vest at a 50% rate. | |||||||||||||||||||||||||
The following table presents the unrecognized compensation related to unvested options to purchase stock, restricted shares of common stock, and RSUs and the weighted average vesting period in which the expense will be recognized: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Stock | Restricted | RSUs | |||||||||||||||||||||||
Options | Shares | ||||||||||||||||||||||||
Unrecognized compensation | $ | 27 | $ | 216 | $ | 13,874 | |||||||||||||||||||
Unvested awards | 36,418 | 12,218 | 1,991,406 | ||||||||||||||||||||||
Weighted average vesting period | 0.33 years | 0.67 years | 1.36 years | ||||||||||||||||||||||
In addition, as part of the Company’s satisfaction of incentive compensation earned for past service under the Company’s variable compensation programs, employees may receive RSUs in lieu of cash payments. These RSUs are issued to an irrevocable trust for the benefit of the employees and are not returnable to the Company. In settlement of such accrued incentive compensation, for the nine months ended September 30, 2014, the Company granted 294,843 of such RSUs with an aggregate fair value upon grant date of $7,317. For the nine months ended September 30, 2013, the Company granted 127,978 comparable RSUs with an aggregate fair value upon grant date of $2,099. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
9. Related Party Transactions: | |
Professional Services Agreement | |
Under a professional services agreement with Crestview Partners, L.P., the Company agreed to pay Crestview Advisors, L.L.C. a $1,000 annual strategic advisory fee plus reimbursement of reasonable out-of-pocket expenses as long as Crestview continued to own at least 50% of the shares purchased by certain Crestview affiliates in the Company’s 2006 private offering. During the fourth quarter of 2013, the Company repurchased 736,781 shares from Crestview, representing its remaining shares of the Company’s common stock. Accordingly, subsequent to these share repurchases the Company no longer has any obligations under the professional services agreement with Crestview. In June 2013, Crestview elected to receive a portion of the management fee in options to purchase shares of the Company’s common stock as allowed for under the agreement. Based on Crestview’s election, the Company issued 32,432 options to Crestview Advisors, L.L.C. valued at $270. During the three and nine months ended September 30, 2013, the Company recognized $250 and $750, respectively, of expense associated with this agreement. | |
Other | |
During the three months ended September 30, 2013, Crestview exercised options to purchase 54,369 shares of the Company’s common stock at an average exercise price of $15.85 per share and an aggregate cost of $862. Subsequently, in September 2013, the Company repurchased those 54,369 shares and 670,631 other shares from Crestview at $26.25 per share and a total cost of $19,031. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
10. Discontinued Operations: | |||||||||
The Company completed the sale of the FBR Funds, a family of mutual funds, in October 2012. Subsequent to the sale closing, the Company has had no continuing involvement in the management of these funds. As a result of this sale transaction, the Company has reported the results of its asset management operations as discontinued operations. | |||||||||
In accordance with the asset sale agreement, the Company received an initial payment upon closing in October 2012 and a subsequent payment upon the first anniversary of closing in October 2013, in each case based on a percentage of assets under management for the applicable funds. Additionally, the gain recorded on the asset sale in 2012 included an estimate of the contingent payment to be received in 2013. The Company valued this contingent payment at each reporting date during 2013, through the first anniversary of the closing in October 2013. These valuations were based on the Company’s consideration of various factors outside of its control that could have had a significant effect on the value of prospective assets under management. For example, uncertainties related to fund performance, market conditions as well as investor demand for equity mutual funds. Other considerations included the Company’s historical asset levels and potential asset attrition as a result of the sale transaction. | |||||||||
The Company’s net income from discontinued operations during the three and nine months ended September 30, 2013 reflects the estimated change in value during the periods of the contingent payment that was due from this sale and recorded as a receivable at December 31, 2012. The increase in value during 2013 was due primarily to market appreciation of the funds during the period subsequent to the sale. The tax provision recognized in 2013 related primarily to state taxes on income that could not be offset by either net operating loss or capital loss carryforwards. Based on the Company’s receipt of the applicable contingent sale proceeds during the fourth quarter of 2013, there are no comparable discontinued operation results in 2014. | |||||||||
The results related to our asset management operations reflected in the consolidated statement of operations for the three and nine months ended September 30, 2013, are presented in the following table. | |||||||||
Three Months | Nine Months | ||||||||
Ended | Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Revenues | $ | — | $ | — | |||||
Gain on sale of assets, net | 3,800 | 7,229 | |||||||
Expenses | (20 | ) | 201 | ||||||
Income from discontinued operations before income taxes | 3,820 | 7,028 | |||||||
Income tax provision | 198 | 284 | |||||||
Income from discontinued operations, net of taxes | $ | 3,622 | $ | 6,744 | |||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
11. Segment Information: | |||||||||||||||||||||||||
The Company considers its capital markets and principal investing operations to be separate reportable segments. The capital markets segment includes the Company’s investment banking and institutional brokerage operations. These businesses operate as a single integrated unit to deliver capital raising, advisory and sales and trading services to corporate and institutional clients. Principal investing includes investments in investment funds, merchant banking and other equity investments, and corporate debt investments. | |||||||||||||||||||||||||
The Company has developed systems and methodologies to allocate overhead costs to its business units and, accordingly, presents segment information consistent with internal management reporting. Revenue generating transactions between the individual segments are included in the net revenue and pre-tax income (loss) of each segment. The following tables illustrate the financial information for the Company’s segments for the periods indicated: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Capital | Principal | Total | Capital | Principal | Total | ||||||||||||||||||||
Markets | Investing | Markets | Investing | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Investment banking | $ | 29,289 | $ | — | $ | 29,289 | $ | 19,614 | $ | — | $ | 19,614 | |||||||||||||
Institutional brokerage | 11,946 | — | 11,946 | 13,194 | — | 13,194 | |||||||||||||||||||
Net investment income | — | 3,075 | 3,075 | — | 650 | 650 | |||||||||||||||||||
Interest | 4,857 | 4 | 4,861 | 148 | 186 | 334 | |||||||||||||||||||
Dividends and other | 131 | 95 | 226 | 88 | 176 | 264 | |||||||||||||||||||
Total revenues | 46,223 | 3,174 | 49,397 | 33,044 | 1,012 | 34,056 | |||||||||||||||||||
Interest expense | 3,632 | 3,668 | 7,300 | — | — | — | |||||||||||||||||||
Revenues, net of interest | 42,591 | (494 | ) | 42,097 | 33,044 | 1,012 | 34,056 | ||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Variable | 13,627 | (413 | ) | 13,214 | 6,633 | (46 | ) | 6,587 | |||||||||||||||||
Fixed | 25,043 | 532 | 25,575 | 23,902 | 417 | 24,319 | |||||||||||||||||||
Total | 38,670 | 119 | 38,789 | 30,535 | 371 | 30,906 | |||||||||||||||||||
Pre-tax income (loss) | $ | 3,921 | $ | (613 | ) | $ | 3,308 | $ | 2,509 | $ | 641 | $ | 3,150 | ||||||||||||
Compensation and benefits: | |||||||||||||||||||||||||
Variable | $ | 8,617 | $ | (416 | ) | $ | 8,201 | $ | 4,717 | $ | (48 | ) | $ | 4,669 | |||||||||||
Fixed | 15,192 | 378 | 15,570 | 13,074 | 249 | 13,323 | |||||||||||||||||||
Total | $ | 23,809 | $ | (38 | ) | $ | 23,771 | $ | 17,791 | $ | 201 | $ | 17,992 | ||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Capital | Principal | Total | Capital | Principal | Total | ||||||||||||||||||||
Markets | Investing | Markets | Investing | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Investment banking | $ | 101,712 | $ | — | $ | 101,712 | $ | 172,941 | $ | — | $ | 172,941 | |||||||||||||
Institutional brokerage | 41,680 | — | 41,680 | 40,021 | — | 40,021 | |||||||||||||||||||
Net investment income | — | 16,000 | 16,000 | — | 3,957 | 3,957 | |||||||||||||||||||
Interest | 5,293 | 122 | 5,415 | 917 | 573 | 1,490 | |||||||||||||||||||
Dividends and other | 428 | 378 | 806 | 287 | 528 | 815 | |||||||||||||||||||
Total revenues | 149,113 | 16,500 | 165,613 | 214,166 | 5,058 | 219,224 | |||||||||||||||||||
Interest expense | 3,632 | 8,428 | 12,060 | — | — | — | |||||||||||||||||||
Revenues, net of interest | 145,481 | 8,072 | 153,553 | 214,166 | 5,058 | 219,224 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Variable | 54,311 | 945 | 55,256 | 93,412 | 713 | 94,125 | |||||||||||||||||||
Fixed | 75,044 | 1,955 | 76,999 | 70,279 | 1,131 | 71,410 | |||||||||||||||||||
Total | 129,355 | 2,900 | 132,255 | 163,691 | 1,844 | 165,535 | |||||||||||||||||||
Pre-tax income | $ | 16,126 | $ | 5,172 | $ | 21,298 | $ | 50,475 | $ | 3,214 | $ | 53,689 | |||||||||||||
Compensation and benefits: | |||||||||||||||||||||||||
Variable | $ | 40,738 | $ | 936 | $ | 41,674 | $ | 82,504 | $ | 708 | $ | 83,212 | |||||||||||||
Fixed | 44,380 | 1,087 | 45,467 | 38,376 | 737 | 39,113 | |||||||||||||||||||
Total | $ | 85,118 | $ | 2,023 | $ | 87,141 | $ | 120,880 | $ | 1,445 | $ | 122,325 | |||||||||||||
The total assets of the Company’s capital markets segment increased to $830,096 as of September 30, 2014 from $349,082 as of June 30, 2014 and from $308,870 as of December 31, 2013. The increase in these total assets during the three and nine months ended September 30, 2014 was due primarily to the purchase of a securities lending business resulting in an increase in securities borrowed, an asset, of $578,399 which was offset by securities loaned, a liability, of $581,003 (see Note 3, “Securities Lending”). | |||||||||||||||||||||||||
The total assets of the Company’s principal investing segment increased to $426,310 as of September 30, 2014 from $397,039 as of June 30, 2014 and $101,702 as of December 31, 2013. The increase in these total assets was a result of investing activities during the three and nine months ended September 30, 2014, in particular, the Company completed one short-sale of $75,000 face value, 7.25% U.S. Treasury security during the three months ended June 30, 2014, and two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities during the three months ended March 31, 2014. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
12. Recent Accounting Pronouncements: | |
In July 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists.” This standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carry-forward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same- jurisdiction loss or other tax carry-forward that would be utilized, rather than only against carry-forwards that are created by the unrecognized tax benefits. This standard is effective for the Company beginning on January 1, 2014. The Company’s adoption of this guidance did not have a significant effect on its disclosures, financial condition, results of operations or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
13. Subsequent Events: | |
The Company has evaluated and determined that no events or transactions occurred after September 30, 2014 that would require recognition or disclosure in these financial statements. |
Financial_Instruments_and_Long1
Financial Instruments and Long-Term Investments (Policies) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) as described below: | |||||||||||||||||||||
Level 1 Inputs | — | Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company; | |||||||||||||||||||
Level 2 Inputs | — | Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; | |||||||||||||||||||
Level 3 Inputs | — | Unobservable inputs for the asset or liability, including significant assumptions of the Company and other market participants. | |||||||||||||||||||
Investments in Marketable Securities | ' | ||||||||||||||||||||
In accordance with ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”), these securities are carried at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the statements of operations. In addition, pursuant to ASC 825, “Financial Instruments” (“ASC 825”), from time-to-time the Company may elect to account for non-public equity securities acquired by other than the Company’s broker-dealer subsidiary as part of its trading portfolio at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the statements of operations. The Company did not make any such fair value elections during the three months ended September 30, 2014, however, during the nine months ended September 30, 2014, the Company elected to account for two non-public equity securities, purchased at a cost of $6,148, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net gains recognized on trading securities | $ | 3,578 | $ | 155 | $ | 11,628 | $ | 1,171 | |||||||||||||
Less: Net (gains) losses recognized on trading securities sold during the period | 169 | 361 | (872 | ) | (262 | ) | |||||||||||||||
Unrealized gains recognized on trading securities still held at the reporting date | $ | 3,747 | $ | 516 | $ | 10,756 | $ | 909 | |||||||||||||
As part of the Company’s investing activities, during the three months ended June 30, 2014 the Company entered into one short-sale of a $75,000 face value 7.25% U.S. Treasury security, and during the three months ended March 31, 2014 the Company entered into two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities. These securities mature in May 2016, November 2015 and February 2016, respectively. These positions are included in securities sold but not yet purchased on the Company’s balance sheet as of September 30, 2014. Proceeds from these short-sales, as well as related margin requirements, are held in a collateral account and are included in due from brokers, dealers and clearing organizations in the Company’s balance sheet. Such amounts are not available for withdrawal and are subject to closure of the open short positions. During the three and nine months ended September 30, 2014, the Company incurred $3,668 and $8,428, respectively, of interest expense related to these transactions. The Company is obligated to fund the fixed-rate coupon interest on these securities while the short-positions are outstanding. | |||||||||||||||||||||
Financial Instruments Held for Investment—Designated as Available-for-Sale | |||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, the Company had certain investments in marketable equity securities held by other than the Company’s broker-dealer subsidiary that are classified as available-for-sale securities. These investments are designated as available-for-sale due to the Company’s intent at the time of designation to hold these securities for investment purposes over an extended period. However, these investments are available to be sold should economic conditions warrant such a transaction. In accordance with ASC 320, these securities are carried at fair value with resulting unrealized gains and losses reflected as other comprehensive income or loss. | |||||||||||||||||||||
Securities Lending | ' | ||||||||||||||||||||
Securities Lending: | |||||||||||||||||||||
On March 27, 2014, the Company entered into a Transaction Agreement with Lazard Capital Markets LLC (“LCM”) pursuant to which FBR Capital Markets & Co. (“FBRCM”), the Company’s broker-dealer subsidiary, agreed to purchase LCM’s securities lending business (the “Transaction Agreement”) and on August 4, 2014, the Company completed its purchase of this securities lending business. Pursuant to the terms of the Transaction Agreement, the Company made an initial cash payment of $1,000 at closing and is obligated to make additional payments that are contingent on the performance of the business over the next 18 months. As described below, as of September 30, 2014, the Company has estimated these aggregate contingent payments to be $4,070. The Company will continue to assess the value of this contingent consideration at each reporting date until its obligations are satisfied. | |||||||||||||||||||||
As a result of this acquisition, the Company has an active securities borrowed and loaned business in which it borrows securities from one party and lends them to another. The securities lending business is included within the Company’s institutional sales, trading and research operations in the Company’s capital markets segment. Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. A substantial portion of the Company’s interest revenue and interest expense results from these activities. | |||||||||||||||||||||
The Company accounts for securities lending transactions in accordance with ASU 2013-01, Balance Sheet (Topic 210): “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” requiring companies to report disclosures of offsetting assets and liabilities. The Company does not net securities borrowed and securities loaned and these items are presented on a gross basis in the balance sheets. The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of September 30, 2014. | |||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts | Amounts not | Net amounts | |||||||||||||||||
Recognized | offset in the | included in the | offset in the | ||||||||||||||||||
Consolidated | Consolidated | Balance Sheet | |||||||||||||||||||
Balance Sheets(1) | Balance Sheets | but eligible for | |||||||||||||||||||
offsetting upon | |||||||||||||||||||||
counterparty | |||||||||||||||||||||
default(2) | |||||||||||||||||||||
Securities borrowed | $ | 578,399 | $ | — | $ | 578,399 | $ | 578,399 | $ | — | |||||||||||
Securities loaned | $ | 581,003 | $ | — | $ | 581,003 | $ | 581,003 | $ | — | |||||||||||
-1 | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||||||||||||||||||||
-2 | Includes the amount of cash collateral held/posted. | ||||||||||||||||||||
The Company accounted for its acquisition of LCM’s securities lending business in accordance with ASC 805, “Business Combinations” (“ASC 805”), using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. The Company’s estimate of contingent consideration and estimates of fair value included in the financial statements, in conformity with ASC 820, represent the Company’s best estimates and valuations. These estimates and underlying assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in its valuations will be realized, and actual results could vary materially. The table below summarizes the preliminary estimates of contingent consideration, and the fair value of the assets acquired and liabilities assumed as of the acquisition date. | |||||||||||||||||||||
Purchase Price: | |||||||||||||||||||||
Cash paid | $ | 1,000 | |||||||||||||||||||
Estimated contingent consideration | 4,070 | ||||||||||||||||||||
Total | $ | 5,070 | |||||||||||||||||||
Fair Value of Assets Acquired: | |||||||||||||||||||||
Securities borrowed | $ | 583,923 | |||||||||||||||||||
Due from brokers, dealers and clearing organizations | 185 | ||||||||||||||||||||
Total | $ | 584,108 | |||||||||||||||||||
Fair Value of Liabilities Assumed: | |||||||||||||||||||||
Securities loaned | $ | 584,108 | |||||||||||||||||||
Purchase price to be allocated to goodwill and intangible assets | $ | 5,070 | |||||||||||||||||||
The goodwill and intangible asset balances are included in the Company’s capital markets segment and this entire balance is expected to be deductible for tax purposes. The Company is in the process of completing its intangible asset appraisals related to this acquisition. In accordance with ASC 805, if additional information is obtained about these assets within the measurement period (not to exceed one year from the date of acquisition), including finalization of asset appraisals, the Company will refine its estimates of fair value to allocate the purchase price more accurately. | |||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
The Company’s quarterly tax provision is determined pursuant to ASC 740, “Income Taxes” (“ASC 740”), which requires using an estimated annual effective rate based on forecasted taxable income for the full year. | |||||||||||||||||||||
Compensation-Stock Compensation | ' | ||||||||||||||||||||
In accordance with the provisions of ASC 718, “Compensation—Stock Compensation,” the Company is required to recognize compensation expense relating to shares offered under the Purchase Plan. For the three and nine months ended September 30, 2014, the Company recognized compensation expense of $32 and $220, respectively. For the three and nine months ended September 30, 2013, the Company recognized compensation expense of $29 and $192, respectively. | |||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists.” This standard requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carry-forward that would apply in settlement of the uncertain tax positions. Under the new standard, unrecognized tax benefits will be netted against all available same- jurisdiction loss or other tax carry-forward that would be utilized, rather than only against carry-forwards that are created by the unrecognized tax benefits. This standard is effective for the Company beginning on January 1, 2014. The Company’s adoption of this guidance did not have a significant effect on its disclosures, financial condition, results of operations or cash flows. |
Financial_Instruments_and_Long2
Financial Instruments and Long-Term Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Items Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, financial instruments accounted for under ASC 820 as of September 30, 2014 and December 31, 2013. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||
September 30, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2014 | |||||||||||||||||
Financial instruments owned, at fair value: | |||||||||||||||||
Financial instruments held for trading activities at broker-dealer subsidiary: | |||||||||||||||||
Marketable and non-public equity securities | $ | 16,259 | $ | 16,190 | $ | — | $ | 69 | |||||||||
Listed options | 10 | 10 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 47,239 | — | 47,239 | — | |||||||||||||
63,508 | 16,200 | 47,239 | 69 | ||||||||||||||
Financial instruments held for investment activities: | |||||||||||||||||
Designated as trading: | |||||||||||||||||
Marketable and non-public equity securities | 7,483 | 5,247 | — | 2,236 | |||||||||||||
Warrants | 904 | — | — | 904 | |||||||||||||
Designated as available-for-sale: | |||||||||||||||||
Marketable equity securities | 163 | 163 | — | — | |||||||||||||
8,550 | 5,410 | — | 3,140 | ||||||||||||||
Investment Funds | 104,804 | — | — | 104,804 | |||||||||||||
Total | $ | 176,862 | $ | 21,610 | $ | 47,239 | $ | 108,013 | |||||||||
Securities sold but not yet purchased, at fair value: | |||||||||||||||||
U.S. Treasury securities | $ | 293,873 | $ | 293,873 | $ | — | $ | — | |||||||||
Marketable equity securities | 36,932 | 36,932 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 4,476 | — | 4,476 | — | |||||||||||||
Total | $ | 335,281 | $ | 330,805 | $ | 4,476 | $ | — | |||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Financial instruments owned, at fair value: | |||||||||||||||||
Financial instruments held for trading activities at broker-dealer subsidiary: | |||||||||||||||||
Marketable and non-public equity securities | $ | 25,402 | $ | 22,054 | $ | — | $ | 3,348 | |||||||||
Listed options | 771 | 771 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 32,024 | — | 32,024 | — | |||||||||||||
58,197 | 22,825 | 32,024 | 3,348 | ||||||||||||||
Financial instruments held for investment activities: | |||||||||||||||||
Designated as trading: | |||||||||||||||||
Marketable and non-public equity securities | 21,142 | 14,951 | — | 6,191 | |||||||||||||
Warrants | 1,996 | — | — | 1,996 | |||||||||||||
Fixed income debt instruments | 2,055 | — | 2,055 | — | |||||||||||||
Designated as available-for-sale: | |||||||||||||||||
Marketable equity securities | 156 | 156 | — | — | |||||||||||||
25,349 | 15,107 | 2,055 | 8,187 | ||||||||||||||
Investment Funds | 61,197 | — | — | 61,197 | |||||||||||||
Total | $ | 144,743 | $ | 37,932 | $ | 34,079 | $ | 72,732 | |||||||||
Securities sold but not yet purchased, at fair value: | |||||||||||||||||
Marketable and non-public equity securities | $ | 35,720 | $ | 34,221 | $ | — | $ | 1,499 | |||||||||
Listed options | 354 | 354 | — | — | |||||||||||||
Convertible and fixed income debt instruments | 6,167 | — | 6,167 | — | |||||||||||||
Total | $ | 42,241 | $ | 34,575 | $ | 6,167 | $ | 1,499 | |||||||||
Valuation Technique and Unobservable Inputs | ' | ||||||||||||||||
The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of September 30, 2014: | |||||||||||||||||
Valuation Technique | Fair Value | Unobservable Input | Range | Weighted | |||||||||||||
Average | |||||||||||||||||
Market approach—assets | $ | 2,305 | Over-the counter trading activity | $0.36 – $25.00/share | $ | 12.02 | |||||||||||
Black-Scholes—assets | $ | 904 | Volatility | 30 | % | 30 | % | ||||||||||
Dividend Yield | 0 | % | 0 | % | |||||||||||||
Interest Rate | 2.4 | % | 2.4 | % | |||||||||||||
The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of December 31, 2013: | |||||||||||||||||
Valuation Technique | Fair Value | Unobservable Input | Range | Weighted | |||||||||||||
Average | |||||||||||||||||
Market approach—assets | $ | 9,539 | Over-the-counter trading activity | $ | 0.77 – $19.00/share | $ | 13.44 | ||||||||||
Market approach—liabilities | $ | 1,499 | Over-the-counter trading activity | $ | 65.15/share | $ | 65.15 | ||||||||||
Black-Scholes—assets | $ | 1,996 | Volatility | 30 | % | 30 | % | ||||||||||
Dividend Yield | 0 | % | 0 | % | |||||||||||||
Interest Rate | 2.9 | % | 2.9 | % | |||||||||||||
Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The tables below set forth a summary of changes in the fair value of the Company’s Level 3 financial assets that are measured at fair value on a recurring basis for the three months ended September 30, 2014 and 2013. As of September 30, 2014 and 2013, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. | |||||||||||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, July 1, 2014 | $ | 9,486 | $ | 93,290 | $ | 102,776 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | (356 | ) | (137 | ) | (493 | ) | |||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 46,241 | 19,057 | 65,298 | ||||||||||||||
Sales/Distributions | (52,162 | ) | (7,406 | ) | (59,568 | ) | |||||||||||
Transfers out of level 3 | — | — | — | ||||||||||||||
Ending balance, September 30, 2014 | $ | 3,209 | $ | 104,804 | $ | 108,013 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | (408 | ) | $ | (66 | ) | $ | (474 | ) | ||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, July 1, 2013 | $ | 10,201 | $ | 28,733 | $ | 38,934 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | 814 | 399 | 1,213 | ||||||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 154,921 | 22,500 | 177,421 | ||||||||||||||
Sales/Distributions | (155,830 | ) | (118 | ) | (155,948 | ) | |||||||||||
Transfers out of level 3 | — | — | — | ||||||||||||||
Ending balance, September 30, 2013 | $ | 10,106 | $ | 51,514 | $ | 61,620 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 343 | $ | 399 | $ | 742 | |||||||||||
The tables below set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Trading | Trading Securities | Investment | Total | ||||||||||||||
Securities | Sold not yet | Funds | |||||||||||||||
Purchased | |||||||||||||||||
Beginning balance, January 1, 2014 | $ | 11,535 | $ | (1,499 | ) | $ | 61,197 | $ | 71,233 | ||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | (268 | ) | (122 | ) | 3,755 | 3,365 | |||||||||||
Included in other comprehensive income | — | — | — | — | |||||||||||||
Purchases | 95,020 | 6,043 | 47,544 | 148,607 | |||||||||||||
Sales/Distributions | (96,829 | ) | (4,422 | ) | (7,692 | ) | (108,943 | ) | |||||||||
Transfers out of level 3 | (6,249 | ) | — | — | (6,249 | ) | |||||||||||
Ending balance, September 30, 2014 | $ | 3,209 | $ | — | $ | 104,804 | $ | 108,013 | |||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 311 | $ | — | $ | 4,190 | $ | 4,501 | |||||||||
Trading | Investment | Total | |||||||||||||||
Securities | Funds | ||||||||||||||||
Beginning balance, January 1, 2013 | $ | 2,615 | $ | 17,600 | $ | 20,215 | |||||||||||
Total net gains (losses) (realized/unrealized) | |||||||||||||||||
Included in earnings | 3,050 | 2,556 | 5,606 | ||||||||||||||
Included in other comprehensive income | — | — | — | ||||||||||||||
Purchases | 391,131 | 31,500 | 422,631 | ||||||||||||||
Sales/Distributions | (385,524 | ) | (142 | ) | (385,666 | ) | |||||||||||
Transfers out of level 3 | (1,166 | ) | — | (1,166 | ) | ||||||||||||
Ending balance, September 30, 2013 | $ | 10,106 | $ | 51,514 | $ | 61,620 | |||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 2,191 | $ | 2,556 | $ | 4,747 | |||||||||||
Gains (Losses) from Level 3 Financial Assets Measured on Recurring Basis | ' | ||||||||||||||||
Gains and losses from Level 3 financial assets that are measured at fair value on a recurring basis, included in earnings for the three and nine months ended September 30, 2014 and 2013, are reported in the following line descriptions on the Company’s statements of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total gains and losses included in earnings for the period: | |||||||||||||||||
Institutional brokerage | $ | (4 | ) | $ | 496 | $ | (1 | ) | $ | 983 | |||||||
Net investment income | (489 | ) | 717 | 3,366 | 4,623 | ||||||||||||
Change in unrealized gains or losses relating to assets still held at the end of the respective period: | |||||||||||||||||
Institutional brokerage | $ | 9 | $ | 25 | $ | (20 | ) | $ | 153 | ||||||||
Net investment income | (483 | ) | 717 | 4,521 | 4,594 | ||||||||||||
Financial Instruments Held for Investment - Designated as Trading | ' | ||||||||||||||||
Net gains and losses on such trading securities as of the dates indicated were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net gains recognized on trading securities | $ | 3,578 | $ | 155 | $ | 11,628 | $ | 1,171 | |||||||||
Less: Net (gains) losses recognized on trading securities sold during the period | 169 | 361 | (872 | ) | (262 | ) | |||||||||||
Unrealized gains recognized on trading securities still held at the reporting date | $ | 3,747 | $ | 516 | $ | 10,756 | $ | 909 | |||||||||
Financial Instruments Held for Investment - Designated as Available-for-Sale | ' | ||||||||||||||||
Gross unrealized gains and losses on these securities as of the dates indicated were as follows: | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Cost | Unrealized | Fair Value | |||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 108 | $ | 55 | $ | 0 | $ | 163 | |||||||||
December 31, 2013 | |||||||||||||||||
Cost | Unrealized | Fair Value | |||||||||||||||
Basis | Gains | Losses | |||||||||||||||
Marketable equity securities | $ | 108 | $ | 48 | $ | 0 | $ | 156 | |||||||||
Changes in the Company's Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
The following tables set forth the changes in the Company’s accumulated other comprehensive income (loss) by component for the period indicated along with detail regarding reclassifications from other comprehensive income (loss). All such reclassifications from other comprehensive income (loss) are included in net investment income in the Company’s consolidated statements of operations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Accumulated other comprehensive income (loss), beginning balance | $ | 58 | $ | 147 | $ | 34 | $ | (1,094 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (20 | ) | 883 | 4 | 1,615 | ||||||||||||
Amounts reclassified from other comprehensive income | — | — | — | 509 | |||||||||||||
Accumulated other comprehensive income, at period end | $ | 38 | $ | 1,030 | $ | 38 | $ | 1,030 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reclassifications from other comprehensive income (loss) | |||||||||||||||||
Other-than-temporary impairment loss | $ | — | $ | — | $ | — | $ | 545 | |||||||||
Realized gains on sale of securities | — | — | — | (36 | ) | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | 509 | |||||||||
Other Investments, at Cost | ' | ||||||||||||||||
Other Investments, at Cost | |||||||||||||||||
Other investments consisted of the following as of the dates indicated: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Non-public equity securities | $ | 7,000 | $ | 2,681 | |||||||||||||
Corporate debt investments | — | 5,000 | |||||||||||||||
$ | 7,000 | $ | 7,681 | ||||||||||||||
Securities_Lending_Tables
Securities Lending (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Gross and Net Securities Borrowing and Lending Balances | ' | ||||||||||||||||||||
The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of September 30, 2014. | |||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts | Amounts not | Net amounts | |||||||||||||||||
Recognized | offset in the | included in the | offset in the | ||||||||||||||||||
Consolidated | Consolidated | Balance Sheet | |||||||||||||||||||
Balance Sheets(1) | Balance Sheets | but eligible for | |||||||||||||||||||
offsetting upon | |||||||||||||||||||||
counterparty | |||||||||||||||||||||
default(2) | |||||||||||||||||||||
Securities borrowed | $ | 578,399 | $ | — | $ | 578,399 | $ | 578,399 | $ | — | |||||||||||
Securities loaned | $ | 581,003 | $ | — | $ | 581,003 | $ | 581,003 | $ | — | |||||||||||
-1 | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||||||||||||||||||||
-2 | Includes the amount of cash collateral held/posted. | ||||||||||||||||||||
Summary of Preliminary Estimates of Contingent Consideration, and Fair Value of Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||||||
The table below summarizes the preliminary estimates of contingent consideration, and the fair value of the assets acquired and liabilities assumed as of the acquisition date. | |||||||||||||||||||||
Purchase Price: | |||||||||||||||||||||
Cash paid | $ | 1,000 | |||||||||||||||||||
Estimated contingent consideration | 4,070 | ||||||||||||||||||||
Total | $ | 5,070 | |||||||||||||||||||
Fair Value of Assets Acquired: | |||||||||||||||||||||
Securities borrowed | $ | 583,923 | |||||||||||||||||||
Due from brokers, dealers and clearing organizations | 185 | ||||||||||||||||||||
Total | $ | 584,108 | |||||||||||||||||||
Fair Value of Liabilities Assumed: | |||||||||||||||||||||
Securities loaned | $ | 584,108 | |||||||||||||||||||
Purchase price to be allocated to goodwill and intangible assets | $ | 5,070 | |||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computations of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table presents the computations of basic and diluted earnings per share for the periods indicated: | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Common stock (in thousands) | 10,171 | 10,171 | 12,137 | 12,137 | |||||||||||||
Stock options, unvested restricted stock and unvested RSUs (in thousands) | — | 1,248 | — | 1,198 | |||||||||||||
Weighted average common and common equivalent shares outstanding (in thousands) | 10,171 | 11,419 | 12,137 | 13,335 | |||||||||||||
Net income applicable to common stock | $ | 3,501 | $ | 3,501 | $ | 6,411 | $ | 6,411 | |||||||||
Net income per common share | $ | 0.34 | $ | 0.31 | $ | 0.53 | $ | 0.48 | |||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Common stock (in thousands) | 10,642 | 10,642 | 12,180 | 12,180 | |||||||||||||
Stock options, unvested restricted stock and unvested RSUs (in thousands) | — | 1,156 | — | 977 | |||||||||||||
Weighted average common and common equivalent shares outstanding (in thousands) | 10,642 | 11,798 | 12,180 | 13,157 | |||||||||||||
Net income applicable to common stock | $ | 16,087 | $ | 16,087 | $ | 84,313 | $ | 84,313 | |||||||||
Net income per common share | $ | 1.51 | $ | 1.36 | $ | 6.92 | $ | 6.41 | |||||||||
Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding | ' | ||||||||||||||||
The following table presents the number of anti-dilutive stock options, unvested restricted stock and unvested RSUs for the periods indicated (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options—employees and directors | 694 | 776 | 720 | 855 | |||||||||||||
Stock options—non-employee | 26 | 196 | 27 | 216 | |||||||||||||
Restricted stock, unvested | 9 | 8 | 10 | 9 | |||||||||||||
RSUs, unvested | 1,048 | 977 | 1,113 | 1,097 | |||||||||||||
1,777 | 1,957 | 1,870 | 2,177 | ||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Compensation Expense Related to Awards | ' | ||||||||||||||||||||||||
The following table presents compensation expense related to these awards for the periods indicated: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Stock options | $ | 21 | $ | 96 | $ | (64 | ) | $ | 429 | ||||||||||||||||
Restricted shares | $ | 80 | $ | 63 | $ | 216 | $ | 83 | |||||||||||||||||
RSUs | $ | 2,373 | $ | 2,025 | $ | 6,581 | $ | 5,536 | |||||||||||||||||
Issuance Activity Related to Grants of Awards | ' | ||||||||||||||||||||||||
The following table presents issuance activity related to grants of these awards for the period indicated: | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
Stock | Restricted | RSUs | Stock | Restricted | RSUs | ||||||||||||||||||||
Options | Shares | Options | Shares | ||||||||||||||||||||||
Stock-based award issuances | — | — | 8,000 | — | 12,218 | 314,676 | |||||||||||||||||||
Grant date fair value per share | $ | — | $ | — | $ | 27.52 | $ | — | $ | 26.19 | $ | 24.22 | |||||||||||||
Unrecognized Compensation Related to Awards | ' | ||||||||||||||||||||||||
The following table presents the unrecognized compensation related to unvested options to purchase stock, restricted shares of common stock, and RSUs and the weighted average vesting period in which the expense will be recognized: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Stock | Restricted | RSUs | |||||||||||||||||||||||
Options | Shares | ||||||||||||||||||||||||
Unrecognized compensation | $ | 27 | $ | 216 | $ | 13,874 | |||||||||||||||||||
Unvested awards | 36,418 | 12,218 | 1,991,406 | ||||||||||||||||||||||
Weighted average vesting period | 0.33 years | 0.67 years | 1.36 years |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Summary of Asset Management Operations Reflected in Consolidated Statements of Operations | ' | ||||||||
The results related to our asset management operations reflected in the consolidated statement of operations for the three and nine months ended September 30, 2013, are presented in the following table. | |||||||||
Three Months | Nine Months | ||||||||
Ended | Ended | ||||||||
September 30, 2013 | September 30, 2013 | ||||||||
Revenues | $ | — | $ | — | |||||
Gain on sale of assets, net | 3,800 | 7,229 | |||||||
Expenses | (20 | ) | 201 | ||||||
Income from discontinued operations before income taxes | 3,820 | 7,028 | |||||||
Income tax provision | 198 | 284 | |||||||
Income from discontinued operations, net of taxes | $ | 3,622 | $ | 6,744 | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Summary of Financial Information of Company's Segments | ' | ||||||||||||||||||||||||
The following tables illustrate the financial information for the Company’s segments for the periods indicated: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Capital | Principal | Total | Capital | Principal | Total | ||||||||||||||||||||
Markets | Investing | Markets | Investing | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Investment banking | $ | 29,289 | $ | — | $ | 29,289 | $ | 19,614 | $ | — | $ | 19,614 | |||||||||||||
Institutional brokerage | 11,946 | — | 11,946 | 13,194 | — | 13,194 | |||||||||||||||||||
Net investment income | — | 3,075 | 3,075 | — | 650 | 650 | |||||||||||||||||||
Interest | 4,857 | 4 | 4,861 | 148 | 186 | 334 | |||||||||||||||||||
Dividends and other | 131 | 95 | 226 | 88 | 176 | 264 | |||||||||||||||||||
Total revenues | 46,223 | 3,174 | 49,397 | 33,044 | 1,012 | 34,056 | |||||||||||||||||||
Interest expense | 3,632 | 3,668 | 7,300 | — | — | — | |||||||||||||||||||
Revenues, net of interest | 42,591 | (494 | ) | 42,097 | 33,044 | 1,012 | 34,056 | ||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Variable | 13,627 | (413 | ) | 13,214 | 6,633 | (46 | ) | 6,587 | |||||||||||||||||
Fixed | 25,043 | 532 | 25,575 | 23,902 | 417 | 24,319 | |||||||||||||||||||
Total | 38,670 | 119 | 38,789 | 30,535 | 371 | 30,906 | |||||||||||||||||||
Pre-tax income (loss) | $ | 3,921 | $ | (613 | ) | $ | 3,308 | $ | 2,509 | $ | 641 | $ | 3,150 | ||||||||||||
Compensation and benefits: | |||||||||||||||||||||||||
Variable | $ | 8,617 | $ | (416 | ) | $ | 8,201 | $ | 4,717 | $ | (48 | ) | $ | 4,669 | |||||||||||
Fixed | 15,192 | 378 | 15,570 | 13,074 | 249 | 13,323 | |||||||||||||||||||
Total | $ | 23,809 | $ | (38 | ) | $ | 23,771 | $ | 17,791 | $ | 201 | $ | 17,992 | ||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||
Capital | Principal | Total | Capital | Principal | Total | ||||||||||||||||||||
Markets | Investing | Markets | Investing | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Investment banking | $ | 101,712 | $ | — | $ | 101,712 | $ | 172,941 | $ | — | $ | 172,941 | |||||||||||||
Institutional brokerage | 41,680 | — | 41,680 | 40,021 | — | 40,021 | |||||||||||||||||||
Net investment income | — | 16,000 | 16,000 | — | 3,957 | 3,957 | |||||||||||||||||||
Interest | 5,293 | 122 | 5,415 | 917 | 573 | 1,490 | |||||||||||||||||||
Dividends and other | 428 | 378 | 806 | 287 | 528 | 815 | |||||||||||||||||||
Total revenues | 149,113 | 16,500 | 165,613 | 214,166 | 5,058 | 219,224 | |||||||||||||||||||
Interest expense | 3,632 | 8,428 | 12,060 | — | — | — | |||||||||||||||||||
Revenues, net of interest | 145,481 | 8,072 | 153,553 | 214,166 | 5,058 | 219,224 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Variable | 54,311 | 945 | 55,256 | 93,412 | 713 | 94,125 | |||||||||||||||||||
Fixed | 75,044 | 1,955 | 76,999 | 70,279 | 1,131 | 71,410 | |||||||||||||||||||
Total | 129,355 | 2,900 | 132,255 | 163,691 | 1,844 | 165,535 | |||||||||||||||||||
Pre-tax income | $ | 16,126 | $ | 5,172 | $ | 21,298 | $ | 50,475 | $ | 3,214 | $ | 53,689 | |||||||||||||
Compensation and benefits: | |||||||||||||||||||||||||
Variable | $ | 40,738 | $ | 936 | $ | 41,674 | $ | 82,504 | $ | 708 | $ | 83,212 | |||||||||||||
Fixed | 44,380 | 1,087 | 45,467 | 38,376 | 737 | 39,113 | |||||||||||||||||||
Total | $ | 85,118 | $ | 2,023 | $ | 87,141 | $ | 120,880 | $ | 1,445 | $ | 122,325 | |||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Regulatory Assets [Abstract] | ' |
Tax benefit | $3,891 |
Net Income | $3,891 |
Earnings per share, basic | $0.32 |
Earnings per share, diluted | $0.29 |
Financial_Instruments_and_Long3
Financial Instruments and Long-Term Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Short_Sale | Short_Sale | Security | Security | Investment | ||||
Investment | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fair value amount of the funds, redeemable | 78.00% | ' | ' | ' | ' | 78.00% | ' | ' |
Investment fund, notice period | ' | ' | ' | ' | ' | '90 days | ' | ' |
Percentage of fair value amount of the funds, subject to early withdrawal fees | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Early withdrawal fee percent | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Percentage of fair value amount of the funds, subject to redemption holdbacks | 81.00% | ' | ' | ' | ' | 81.00% | ' | ' |
Percentage of holdback | 10.00% | ' | ' | ' | ' | 10.00% | ' | ' |
Fair value of assets measured on recurring basis | $176,862,000 | ' | ' | $144,743,000 | ' | $176,862,000 | ' | $144,743,000 |
Investment in non-registered investment funds | 104,804,000 | ' | ' | 61,197,000 | ' | 104,804,000 | ' | 61,197,000 |
Non-registered investment | ' | ' | ' | ' | ' | 20 | ' | 14 |
Percentage of liabilities measured on recurring basis to total liabilities | ' | ' | ' | 1.30% | ' | ' | ' | ' |
Transfers in and out of level 1, 2 and 3 | 0 | ' | ' | ' | 0 | ' | ' | ' |
Number of Transfer made out of Level 3 and into Level 1 | ' | ' | ' | ' | ' | 2 | 1 | ' |
Transfer made Out of Level 2 | 0 | ' | ' | ' | 0 | 0 | 0 | ' |
Transfer made into Level 2 | 0 | ' | ' | ' | 0 | 0 | 0 | ' |
Non-public equity security purchased at a cost | ' | ' | ' | ' | ' | 6,148,000 | ' | ' |
Number of short-sales | ' | 1 | 2 | ' | ' | ' | ' | ' |
Face value amount | ' | 75,000,000 | 100,000,000 | ' | ' | ' | ' | ' |
Coupon rate of treasury securities | ' | 7.25% | 4.50% | ' | ' | ' | ' | ' |
Securities Maturity date | ' | ' | '2015-11 | ' | ' | ' | ' | ' |
Securities Maturity date | ' | ' | '2016-02 | ' | ' | ' | ' | ' |
Securities Maturity date | ' | ' | '2016-05 | ' | ' | ' | ' | ' |
Interest expense incurred | 3,668,000 | ' | ' | ' | ' | 8,428,000 | ' | ' |
Other-than-temporary impairment losses | 0 | ' | ' | ' | 0 | 0 | 545,000 | ' |
Marketable securities with unrealized loss position | 0 | ' | ' | ' | ' | 0 | ' | ' |
Carrying value of investment | 4,257,000 | ' | ' | ' | ' | 4,257,000 | ' | ' |
Impairment losses | 0 | ' | ' | ' | 0 | 0 | 0 | ' |
Other investments, at cost | 7,000,000 | ' | ' | 7,681,000 | ' | 7,000,000 | ' | 7,681,000 |
Non-Public Equity Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Other investments, at cost | 7,000,000 | ' | ' | 2,681,000 | ' | 7,000,000 | ' | 2,681,000 |
Available-for-Sale Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of marketable securities | 0 | ' | ' | ' | 0 | 0 | 4,225,000 | ' |
Gross losses from sale of marketable securities | 0 | ' | ' | ' | 0 | 0 | -32,000 | ' |
Other Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds maturity of note receivable carried at cost | ' | ' | ' | ' | ' | 317,000 | ' | ' |
Other Investments [Member] | Non-Public Equity Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross losses from sale of marketable securities | ' | ' | ' | ' | ' | 1,176,000 | ' | ' |
Proceeds from sale of corporate debt investment | 0 | ' | ' | ' | 0 | 1,428,000 | 0 | ' |
Non-public equity security with a cost basis | 428,000 | ' | ' | ' | 2,390,000 | 428,000 | 2,390,000 | ' |
Other investments, at cost | 5,000,000 | ' | ' | ' | ' | 5,000,000 | ' | ' |
Estimated Fair Value, Level 3 [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets measured on recurring basis | 108,013,000 | ' | ' | 72,732,000 | ' | 108,013,000 | ' | 72,732,000 |
Percentage of assets measured on recurring basis to assets | 8.60% | ' | ' | 17.70% | ' | 8.60% | ' | 17.70% |
Fair value of Liabilities measured on recurring basis | ' | ' | ' | $1,499,000 | ' | ' | ' | $1,499,000 |
Financial_Instruments_and_Long4
Financial Instruments and Long-Term Investments - Items Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | $63,508 | $58,197 |
Financial instruments held for investment activities | 8,550 | 25,349 |
Securities sold but not yet purchased, at fair value | 335,281 | 42,241 |
Investment Funds | 104,804 | 61,197 |
Total | 176,862 | 144,743 |
Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 16,259 | 25,402 |
Listed Options [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 10 | 771 |
Securities sold but not yet purchased, at fair value | ' | 354 |
Convertible and Fixed Income Debt Instruments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 47,239 | 32,024 |
Securities sold but not yet purchased, at fair value | 4,476 | 6,167 |
Marketable Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities sold but not yet purchased, at fair value | 36,932 | 35,720 |
U.S. Treasury Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities sold but not yet purchased, at fair value | 293,873 | ' |
Trading Securities [Member] | Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 7,483 | 21,142 |
Trading Securities [Member] | Warrants [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 904 | 1,996 |
Trading Securities [Member] | Fixed Income Debt Instruments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | ' | 2,055 |
Available-for-Sale Securities [Member] | Marketable Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 163 | 156 |
Estimated Fair Value, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 16,200 | 22,825 |
Financial instruments held for investment activities | 5,410 | 15,107 |
Securities sold but not yet purchased, at fair value | 330,805 | 34,575 |
Total | 21,610 | 37,932 |
Estimated Fair Value, Level 1 [Member] | Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 16,190 | 22,054 |
Estimated Fair Value, Level 1 [Member] | Listed Options [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 10 | 771 |
Securities sold but not yet purchased, at fair value | ' | 354 |
Estimated Fair Value, Level 1 [Member] | Marketable Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities sold but not yet purchased, at fair value | 36,932 | 34,221 |
Estimated Fair Value, Level 1 [Member] | U.S. Treasury Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities sold but not yet purchased, at fair value | 293,873 | ' |
Estimated Fair Value, Level 1 [Member] | Trading Securities [Member] | Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 5,247 | 14,951 |
Estimated Fair Value, Level 1 [Member] | Available-for-Sale Securities [Member] | Marketable Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 163 | 156 |
Estimated Fair Value, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 47,239 | 32,024 |
Financial instruments held for investment activities | ' | 2,055 |
Securities sold but not yet purchased, at fair value | 4,476 | 6,167 |
Total | 47,239 | 34,079 |
Estimated Fair Value, Level 2 [Member] | Convertible and Fixed Income Debt Instruments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 47,239 | 32,024 |
Securities sold but not yet purchased, at fair value | 4,476 | 6,167 |
Estimated Fair Value, Level 2 [Member] | Trading Securities [Member] | Fixed Income Debt Instruments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | ' | 2,055 |
Estimated Fair Value, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 69 | 3,348 |
Financial instruments held for investment activities | 3,140 | 8,187 |
Securities sold but not yet purchased, at fair value | ' | 1,499 |
Investment Funds | 104,804 | 61,197 |
Total | 108,013 | 72,732 |
Estimated Fair Value, Level 3 [Member] | Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for trading activities at broker-dealer subsidiary | 69 | 3,348 |
Estimated Fair Value, Level 3 [Member] | Marketable Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities sold but not yet purchased, at fair value | ' | 1,499 |
Estimated Fair Value, Level 3 [Member] | Trading Securities [Member] | Marketable and Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | 2,236 | 6,191 |
Estimated Fair Value, Level 3 [Member] | Trading Securities [Member] | Warrants [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instruments held for investment activities | $904 | $1,996 |
Financial_Instruments_and_Long5
Financial Instruments and Long-Term Investments - Valuation Technique and Unobservable Inputs (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Black-Scholes [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 2.40% | 2.90% |
Liability [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value | ' | 1,499 |
Over-the counter trading activity | ' | 65.15 |
Weighted Average [Member] | Black-Scholes [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 2.40% | 2.90% |
Weighted Average [Member] | Liability [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Over-the counter trading activity | ' | 65.15 |
Assets [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value | 2,305 | 9,539 |
Assets [Member] | Black-Scholes [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value | 904 | 1,996 |
Volatility | 30.00% | 30.00% |
Assets [Member] | Minimum [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Over-the counter trading activity | 0.36 | 0.77 |
Assets [Member] | Maximum [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Over-the counter trading activity | 25 | 19 |
Assets [Member] | Weighted Average [Member] | Market Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Over-the counter trading activity | 12.02 | 13.44 |
Assets [Member] | Weighted Average [Member] | Black-Scholes [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Volatility, weighted average | 30.00% | 30.00% |
Financial_Instruments_and_Long6
Financial Instruments and Long-Term Investments - Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Beginning balance | $102,776 | $38,934 | $71,233 | $20,215 |
Total net gains (losses) (realized/unrealized) | ' | ' | ' | ' |
Included in earnings | -493 | 1,213 | 3,365 | 5,606 |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases | 65,298 | 177,421 | 148,607 | 422,631 |
Sales/Distributions | -59,568 | -155,948 | -108,943 | -385,666 |
Transfers out of level 3 | ' | ' | -6,249 | -1,166 |
Ending balance | 108,013 | 61,620 | 108,013 | 61,620 |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date | -474 | 742 | 4,501 | 4,747 |
Trading Securities [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Beginning balance | 9,486 | 10,201 | 11,535 | 2,615 |
Total net gains (losses) (realized/unrealized) | ' | ' | ' | ' |
Included in earnings | -356 | 814 | -268 | 3,050 |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases | 46,241 | 154,921 | 95,020 | 391,131 |
Sales/Distributions | -52,162 | -155,830 | -96,829 | -385,524 |
Transfers out of level 3 | ' | ' | -6,249 | -1,166 |
Ending balance | 3,209 | 10,106 | 3,209 | 10,106 |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date | -408 | 343 | 311 | 2,191 |
Investment Funds [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Beginning balance | 93,290 | 28,733 | 61,197 | 17,600 |
Total net gains (losses) (realized/unrealized) | ' | ' | ' | ' |
Included in earnings | -137 | 399 | 3,755 | 2,556 |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases | 19,057 | 22,500 | 47,544 | 31,500 |
Sales/Distributions | -7,406 | -118 | -7,692 | -142 |
Transfers out of level 3 | ' | ' | ' | ' |
Ending balance | 104,804 | 51,514 | 104,804 | 51,514 |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date | -66 | 399 | 4,190 | 2,556 |
Trading Securities Sold not yet Purchased [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | -1,499 | ' |
Total net gains (losses) (realized/unrealized) | ' | ' | ' | ' |
Included in earnings | ' | ' | -122 | ' |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases | ' | ' | 6,043 | ' |
Sales/Distributions | ' | ' | ($4,422) | ' |
Financial_Instruments_and_Long7
Financial Instruments and Long-Term Investments - Gains (Losses) from Level 3 Financial Assets Measured on Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Total gains and losses included in earnings for the period: | ' | ' | ' | ' |
Included in earnings | $493 | ($1,213) | ($3,365) | ($5,606) |
Change in unrealized gains or losses relating to assets held at the end of respective period | -474 | 742 | 4,501 | 4,747 |
Institutional Brokerage [Member] | ' | ' | ' | ' |
Total gains and losses included in earnings for the period: | ' | ' | ' | ' |
Included in earnings | -4 | 496 | -1 | 983 |
Change in unrealized gains or losses relating to assets held at the end of respective period | 9 | 25 | -20 | 153 |
Net Investment Income [Member] | ' | ' | ' | ' |
Total gains and losses included in earnings for the period: | ' | ' | ' | ' |
Included in earnings | -489 | 717 | 3,366 | 4,623 |
Change in unrealized gains or losses relating to assets held at the end of respective period | ($483) | $717 | $4,521 | $4,594 |
Financial_Instruments_and_Long8
Financial Instruments and Long-Term Investments - Financial Instruments Held for Investment - Designated as Trading (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Realized and Unrealized Gain (Loss) on Trading Securities [Abstract] | ' | ' | ' | ' |
Net gains recognized on trading securities | $3,578 | $155 | $11,628 | $1,171 |
Less: Net (gains) losses recognized on trading securities sold during the period | 169 | 361 | -872 | -262 |
Unrealized gains recognized on trading securities still held at the reporting date | $3,747 | $516 | $10,756 | $909 |
Financial_Instruments_and_Long9
Financial Instruments and Long-Term Investments - Financial Instruments Held for Investment - Designated as Available-for-Sale (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Financial Instruments Held For Investment Designated As Available For Sale [Abstract] | ' | ' |
Marketable equity securities, Cost Basis | $108 | $108 |
Marketable equity securities, Unrealized Gains | 55 | 48 |
Marketable equity securities, Unrealized Losses | 0 | 0 |
Marketable equity securities, Fair Value | $163 | $156 |
Recovered_Sheet1
Financial Instruments and Long-Term Investments - Changes in the Company's Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amortized Cost and Fair Value Debt Securities [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | $58,000 | $147,000 | $34,000 | ($1,094,000) |
Other comprehensive (loss) income before reclassifications | -20,000 | 883,000 | 4,000 | 1,615,000 |
Amounts reclassified from other comprehensive income (loss) | ' | ' | ' | 509,000 |
Accumulated other comprehensive income, at period end | 38,000 | 1,030,000 | 38,000 | 1,030,000 |
Reclassifications from other comprehensive income (loss) | ' | ' | ' | ' |
Other-than-temporary impairment loss | 0 | 0 | 0 | 545,000 |
Realized gains on sale of securities | ' | ' | ' | -36,000 |
Total | ' | ' | ' | $509,000 |
Recovered_Sheet2
Financial Instruments and Long-Term Investments - Other Investments, at Cost (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments, at cost | $7,000 | $7,681 |
Non-Public Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments, at cost | 7,000 | 2,681 |
Corporate Debt Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other investments, at cost | ' | $5,000 |
Securities_Lending_Additional_
Securities Lending - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 27, 2014 | Sep. 30, 2014 |
Securities Financing Transaction [Line Items] | ' | ' |
Initial cash payment on securities lending business | ' | $1,000 |
Lazard Capital Markets LLC [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Initial cash payment on securities lending business | 1,000 | ' |
Completed date of purchase of LCM's securities lending business | ' | 4-Aug-14 |
Estimated additional payment on securities lending business | ' | $4,070 |
Contingent on performance of business | '18 months | ' |
Securities_Lending_Gross_and_N
Securities Lending - Gross and Net Securities Borrowing and Lending Balances (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Brokers and Dealers [Abstract] | ' |
Gross Amounts Recognized | $581,003 |
Gross Amounts offset in the Consolidated Balance Sheets | ' |
Net Amounts included in the Consolidated Balance Sheets | 581,003 |
Amounts not offset in the Balance Sheet but eligible for offsetting upon counterparty default | 581,003 |
Net amounts | ' |
Gross Amounts Recognized | 578,399 |
Gross Amounts offset in the Consolidated Balance Sheets | ' |
Net Amounts included in the Consolidated Balance Sheets | 578,399 |
Amounts not offset in the Balance Sheet but eligible for offsetting upon counterparty default | 578,399 |
Net amounts | ' |
Securities_Lending_Summary_of_
Securities Lending - Summary of Preliminary Estimates of Contingent Consideration, and Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 9 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 27, 2014 | Mar. 27, 2014 |
Lazard Capital Markets LLC [Member] | Lazard Capital Markets LLC [Member] | ||
Purchase Price: | ' | ' | ' |
Cash paid | $1,000 | $1,000 | ' |
Estimated contingent consideration | ' | 4,070 | ' |
Total | ' | 5,070 | ' |
Fair Value of Assets Acquired: | ' | ' | ' |
Securities borrowed | ' | ' | 583,923 |
Due from brokers, dealers and clearing organizations | ' | ' | 185 |
Total | ' | ' | 584,108 |
Fair Value of Liabilities Assumed: | ' | ' | ' |
Securities loaned | ' | ' | 584,108 |
Purchase price to be allocated to goodwill and intangible assets | ' | ' | $5,070 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax (benefit) provision | ($193) | $361 | $5,211 | ($23,880) | ' |
Effective tax rates | -5.80% | 11.50% | 24.50% | -44.50% | ' |
Valuation allowance | 14,100 | ' | 14,100 | ' | ' |
Deferred tax assets | ' | ' | ' | ' | 49,165 |
Net deferred tax assets | ' | ' | ' | ' | $18,272 |
Net_Capital_Requirements_Addit
Net Capital Requirements - Additional Information (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Brokers and Dealers [Abstract] | ' |
Net capital | $63,096 |
Net capital, excess of minimum required capital | 58,440 |
Minimum net capital required | $4,656 |
Earnings_Per_Share_Computation
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Weighted average shares outstanding, Basic: | ' | ' | ' | ' |
Common stock, Basic (in thousands) | 10,171 | 12,137 | 10,642 | 12,180 |
Weighted average common and common equivalent shares outstanding, Basic (in thousands) | 10,171 | 12,137 | 10,642 | 12,180 |
Net income (loss) applicable to common stock, Basic | $3,501 | $6,411 | $16,087 | $84,313 |
Net Income (loss) per common share, Basic | $0.34 | $0.53 | $1.51 | $6.92 |
Weighted average shares outstanding, Diluted: | ' | ' | ' | ' |
Common stock, Diluted (in thousands) | 10,171 | 12,137 | 10,642 | 12,180 |
Stock options, unvested restricted stock and RSUs, Diluted (in thousands) | 1,248 | 1,198 | 1,156 | 977 |
Weighted average common and common equivalent shares outstanding, Diluted (in thousands) | 11,419 | 13,335 | 11,798 | 13,157 |
Net income (loss) applicable to common stock, Diluted | $3,501 | $6,411 | $16,087 | $84,313 |
Net Income (loss) per common share, Diluted | $0.31 | $0.48 | $1.36 | $6.41 |
Earnings_Per_Share_Number_of_A
Earnings Per Share - Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock-based awards | 1,777 | 1,957 | 1,870 | 2,177 |
Stock Options-Employees and Directors [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock-based awards | 694 | 776 | 720 | 855 |
Stock Options-Non-Employee [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock-based awards | 26 | 196 | 27 | 216 |
Restricted Stock [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock-based awards | 9 | 8 | 10 | 9 |
RSUs [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive stock-based awards | 1,048 | 977 | 1,113 | 1,097 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
RSUs [Member] | RSUs [Member] | Dutch Auction Tender Offer [Member] | Privately Negotiated or Open Market Transactions [Member] | Privately Negotiated or Open Market Transactions [Member] | Privately Negotiated or Open Market Transactions [Member] | Maximum [Member] | Minimum [Member] | Stock Compensation Plans [Member] | Stock Compensation Plans [Member] | Stock Compensation Plans [Member] | |||||
Maximum [Member] | Minimum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock repurchased | 0 | ' | ' | ' | ' | ' | 1,201,897 | 776,728 | 662,012 | 1,492,265 | ' | ' | ' | ' | ' |
Weighted average price | ' | ' | ' | ' | ' | ' | $28.06 | $26.28 | $26.18 | $21.91 | ' | ' | ' | ' | ' |
Repurchases of common stock | ' | ' | $51,059 | $32,700 | ' | ' | $33,730 | $20,416 | $17,329 | $32,700 | ' | ' | ' | ' | ' |
Number of shares authorized to repurchase | 953,654 | ' | 953,654 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discounted purchase price of market value for Employee Stock Purchase Plan | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | 32 | 29 | 220 | 192 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock-based awards available for grant under the long-term incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,217,496 | ' | ' |
Period for Long-Term Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Exercise period of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Termination date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22-Oct-23 | ' | ' |
Cliff vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '3 years |
RSU awards that will vest based on both individual service requirements and the Company's achievement of a specified performance goal | ' | ' | ' | ' | 277,405 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rate used under condition one of performance goal | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rate used under condition two of performance goal | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period under performance goal | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of compound annual growth rate in performance period used under condition one of performance goal | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of compound annual growth rate in performance period used under condition two of performance goal | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of rate used under condition three of performance goal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 50.00% | ' | ' | ' |
Percentage of compound annual growth rate in performance period used under condition three of performance goal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 6.00% | ' | ' | ' |
Percentage of compensation expense | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RSUs granted | ' | ' | 294,843 | ' | ' | 127,978 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value upon grant date | $7,317 | ' | $7,317 | ' | ' | $2,099 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Compensati
Shareholders' Equity - Compensation Expense Related to Awards (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense | ' | ' | $6,952 | $6,258 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense | 21 | 96 | -64 | 429 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense | 80 | 63 | 216 | 83 |
RSUs [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense | $2,373 | $2,025 | $6,581 | $5,536 |
Shareholders_Equity_Issuance_A
Shareholders' Equity - Issuance Activity Related to Grants of Awards (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based award issuances | ' | ' |
Grant date fair value per share | ' | ' |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based award issuances | ' | 12,218 |
Grant date fair value per share | ' | $26.19 |
RSUs [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based award issuances | 8,000 | 314,676 |
Grant date fair value per share | $27.52 | $24.22 |
Shareholders_Equity_Unrecogniz
Shareholders' Equity - Unrecognized Compensation Related to Awards (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation | $27 |
Unvested awards | 36,418 |
Weighted average vesting period | '3 months 29 days |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation | 216 |
Unvested awards | 12,218 |
Weighted average vesting period | '8 months 1 day |
RSUs [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation | $13,874 |
Unvested awards | 1,991,406 |
Weighted average vesting period | '1 year 4 months 10 days |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 |
Professional Services Agreement [Member] | Professional Services Agreement [Member] | Crestview Company [Member] | Crestview Company [Member] | Crestview Company [Member] | |||
Third Party [Member] | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Professional fees | $1,000 | ' | ' | ' | ' | ' | ' |
Minimum percentage of voting right in subsidiary to get advisory fee | 50.00% | ' | ' | ' | ' | ' | ' |
Expense associated with professional services agreement | ' | ' | 250 | 750 | ' | ' | ' |
Shares repurchase | ' | ' | ' | ' | 736,781 | 54,369 | ' |
Common stock issued | ' | ' | ' | ' | ' | ' | 32,432 |
Common stock value | ' | ' | ' | ' | ' | ' | 270 |
Shares issued, option exercised | ' | ' | ' | ' | ' | 54,369 | ' |
Average exercise price of shares | ' | ' | ' | ' | ' | $15.85 | ' |
Aggregate cost of shares | ' | ' | ' | ' | ' | 862 | ' |
Shares repurchase, other | ' | ' | ' | ' | ' | 670,631 | ' |
Price per common shares repurchased | ' | ' | ' | ' | ' | $26.25 | ' |
Repurchases of common stock | $51,059 | $55,541 | ' | ' | ' | $19,031 | ' |
Discontinued_Operations_Summar
Discontinued Operations - Summary of Asset Management Operations Reflected in Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Revenues | ' | ' |
Gain on sale of assets, net | 3,800 | 7,229 |
Expenses | -20 | 201 |
Income from discontinued operations before income taxes | 3,820 | 7,028 |
Income tax provision | 198 | 284 |
Income from discontinued operations, net of taxes | $3,622 | $6,744 |
Segment_Information_Summary_of
Segment Information - Summary of Financial Information of Company's Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Investment banking | $29,289 | $19,614 | $101,712 | $172,941 |
Institutional brokerage | 11,946 | 13,194 | 41,680 | 40,021 |
Net investment income | 3,075 | 650 | 16,000 | 3,957 |
Interest | 4,861 | 334 | 5,415 | 1,490 |
Dividends and other | 226 | 264 | 806 | 815 |
Total revenues | 49,397 | 34,056 | 165,613 | 219,224 |
Interest expense | 7,300 | ' | 12,060 | ' |
Revenues, net of interest | 42,097 | 34,056 | 153,553 | 219,224 |
Operating Expenses: | ' | ' | ' | ' |
Variable | 13,214 | 6,587 | 55,256 | 94,125 |
Fixed | 25,575 | 24,319 | 76,999 | 71,410 |
Total non-interest expenses | 38,789 | 30,906 | 132,255 | 165,535 |
Income from continuing operations before income taxes | 3,308 | 3,150 | 21,298 | 53,689 |
Compensation and benefits: | ' | ' | ' | ' |
Variable | 8,201 | 4,669 | 41,674 | 83,212 |
Fixed | 15,570 | 13,323 | 45,467 | 39,113 |
Total | 23,771 | 17,992 | 87,141 | 122,325 |
Capital Markets [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Investment banking | 29,289 | 19,614 | 101,712 | 172,941 |
Institutional brokerage | 11,946 | 13,194 | 41,680 | 40,021 |
Net investment income | ' | ' | ' | ' |
Interest | 4,857 | 148 | 5,293 | 917 |
Dividends and other | 131 | 88 | 428 | 287 |
Total revenues | 46,223 | 33,044 | 149,113 | 214,166 |
Interest expense | 3,632 | ' | 3,632 | ' |
Revenues, net of interest | 42,591 | 33,044 | 145,481 | 214,166 |
Operating Expenses: | ' | ' | ' | ' |
Variable | 13,627 | 6,633 | 54,311 | 93,412 |
Fixed | 25,043 | 23,902 | 75,044 | 70,279 |
Total non-interest expenses | 38,670 | 30,535 | 129,355 | 163,691 |
Income from continuing operations before income taxes | 3,921 | 2,509 | 16,126 | 50,475 |
Compensation and benefits: | ' | ' | ' | ' |
Variable | 8,617 | 4,717 | 40,738 | 82,504 |
Fixed | 15,192 | 13,074 | 44,380 | 38,376 |
Total | 23,809 | 17,791 | 85,118 | 120,880 |
Principal Investing [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Investment banking | ' | ' | ' | ' |
Institutional brokerage | ' | ' | ' | ' |
Net investment income | 3,075 | 650 | 16,000 | 3,957 |
Interest | 4 | 186 | 122 | 573 |
Dividends and other | 95 | 176 | 378 | 528 |
Total revenues | 3,174 | 1,012 | 16,500 | 5,058 |
Interest expense | 3,668 | ' | 8,428 | ' |
Revenues, net of interest | -494 | 1,012 | 8,072 | 5,058 |
Operating Expenses: | ' | ' | ' | ' |
Variable | -413 | -46 | 945 | 713 |
Fixed | 532 | 417 | 1,955 | 1,131 |
Total non-interest expenses | 119 | 371 | 2,900 | 1,844 |
Income from continuing operations before income taxes | -613 | 641 | 5,172 | 3,214 |
Compensation and benefits: | ' | ' | ' | ' |
Variable | -416 | -48 | 936 | 708 |
Fixed | 378 | 249 | 1,087 | 737 |
Total | ($38) | $201 | $2,023 | $1,445 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Short_Sale | Short_Sale | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Increase/Decrease in total assets of segment | ' | ' | $1,256,406 | $410,572 |
Securities borrowed | ' | ' | 578,399 | ' |
Securities loaned | ' | ' | 581,003 | ' |
Face value amount | 75,000 | 100,000 | ' | ' |
Number of short-sales | 1 | 2 | ' | ' |
Coupon rate of treasury securities | 7.25% | 4.50% | ' | ' |
Capital Markets [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Increase/Decrease in total assets of segment | 349,082 | ' | 830,096 | 308,870 |
Securities borrowed | ' | ' | 578,399 | ' |
Securities loaned | ' | ' | 581,003 | ' |
Principal Investing [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Increase/Decrease in total assets of segment | $397,039 | ' | $426,310 | $101,702 |