Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FBRC | |
Entity Registrant Name | FBR & CO. | |
Entity Central Index Key | 1,371,446 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,455,687 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 71,170 | $ 108,962 |
Receivables: | ||
Securities borrowed | 683,269 | 594,674 |
Due from brokers, dealers and clearing organizations | 323,949 | 94,489 |
Customers | 2,897 | 3,349 |
Other | 5,945 | 5,227 |
Financial instruments owned, at fair value | 120,949 | 166,047 |
Other investments, at cost | 7,000 | 7,000 |
Goodwill and intangible assets | 4,742 | 4,921 |
Furniture, equipment, software, and leasehold improvements, net of accumulated depreciation and amortization | 15,161 | 15,388 |
Deferred tax assets, net of valuation allowance | 28,497 | 28,648 |
Prepaid expenses and other assets | 5,390 | 6,392 |
Total assets | 1,268,969 | 1,035,097 |
Liabilities | ||
Securities loaned | 685,266 | 595,717 |
Securities sold but not yet purchased, at fair value | 300,571 | 121,310 |
Accrued compensation and benefits | 20,668 | 34,571 |
Accounts payable, accrued expenses and other liabilities | 27,599 | 23,093 |
Total liabilities | $ 1,034,104 | $ 774,691 |
Commitments and Contingencies (Note 7) | ||
Shareholders’ equity | ||
Preferred Stock, $0.001 par value 100,000,000 authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value, 75,000,000 shares authorized, 7,518,603 and 8,388,697 shares issued and outstanding, respectively | 8 | 8 |
Additional paid-in capital | 277,465 | 302,720 |
Restricted stock units | 33,734 | 34,353 |
Accumulated other comprehensive income, net of taxes | 0 | 44 |
Accumulated deficit | (76,342) | (76,719) |
Total shareholders’ equity | 234,865 | 260,406 |
Total liabilities and shareholders’ equity | $ 1,268,969 | $ 1,035,097 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 7,518,603 | 8,388,697 |
Common stock, shares outstanding | 7,518,603 | 8,388,697 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investment banking: | ||||
Capital raising | $ 27,827 | $ 35,312 | $ 37,111 | $ 68,628 |
Advisory | 1,901 | 472 | 5,292 | 3,795 |
Institutional brokerage | 12,441 | 14,643 | 24,684 | 29,734 |
Net investment income | 3,679 | 9,091 | 7,029 | 12,925 |
Interest | 8,008 | 270 | 14,993 | 554 |
Dividends and other | 192 | 393 | 463 | 580 |
Total revenues | 54,048 | 60,181 | 89,572 | 116,216 |
Interest expense | 9,792 | 3,083 | 18,221 | 4,760 |
Revenues, net of interest expense | 44,256 | 57,098 | 71,351 | 111,456 |
Non-interest expenses: | ||||
Compensation and benefits | 24,275 | 32,070 | 42,230 | 63,370 |
Professional services | 4,439 | 4,424 | 6,812 | 7,362 |
Business development | 2,642 | 3,057 | 4,530 | 5,425 |
Clearing and brokerage fees | 1,336 | 1,137 | 2,559 | 2,361 |
Occupancy and equipment | 3,103 | 3,003 | 6,161 | 6,155 |
Communications | 2,576 | 2,856 | 5,587 | 5,748 |
Other operating expenses | 1,487 | 1,576 | 2,917 | 3,045 |
Total non-interest expenses | 39,858 | 48,123 | 70,796 | 93,466 |
Income before income taxes | 4,398 | 8,975 | 555 | 17,990 |
Income tax expense | 1,499 | 1,999 | 178 | 5,404 |
Net income | $ 2,899 | $ 6,976 | $ 377 | $ 12,586 |
Income per share: | ||||
Basic income per share | $ 0.36 | $ 0.65 | $ 0.04 | $ 1.15 |
Diluted income per share | $ 0.32 | $ 0.58 | $ 0.04 | $ 1.04 |
Basic weighted average shares outstanding (in thousands) | 8,084 | 10,795 | 8,453 | 10,927 |
Diluted weighted average shares outstanding (in thousands) | 9,159 | 11,965 | 9,634 | 12,050 |
Cash dividends declared per common share | $ 0.20 | $ 0 | $ 0.20 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 2,899 | $ 6,976 | $ 377 | $ 12,586 |
Other comprehensive income, net of tax: | ||||
Change in unrealized gain on available-for-sale investment securities, net of taxes of $0, $2, $28 and $14, respectively | 0 | 5 | (44) | 24 |
Comprehensive income | $ 2,899 | $ 6,981 | $ 333 | $ 12,610 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in unrealized gain on available-for-sale investment securities, taxes | $ 0 | $ 2 | $ 28 | $ 14 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Restricted Stock Units [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2013 | $ 290,777 | $ 11 | $ 362,983 | $ 21,487 | $ 34 | $ (93,738) |
Balance, Shares at Dec. 31, 2013 | 10,545 | |||||
Net income | 17,019 | $ 0 | 0 | 0 | 0 | 17,019 |
Issuance of common stock, net of forfeitures | 2,347 | $ 0 | 5,447 | (3,100) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 295 | |||||
Repurchase of common stock | (64,094) | $ (3) | (64,091) | 0 | 0 | 0 |
Repurchase of common stock, shares | (2,380) | |||||
Repurchase of common stock for employee tax withholding | (1,823) | $ 0 | (1,823) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (71) | |||||
Stock compensation expense for options granted to purchase common stock | 204 | $ 0 | 204 | 0 | 0 | 0 |
Issuance of restricted stock units | 15,966 | 0 | 0 | 15,966 | 0 | 0 |
Change in unrealized gain on available-for-sale investment securities, net of taxes | 10 | 0 | 0 | 0 | 10 | 0 |
Balance at Dec. 31, 2014 | 260,406 | $ 8 | 302,720 | 34,353 | 44 | (76,719) |
Balance, Shares at Dec. 31, 2014 | 8,389 | |||||
Net income | 377 | $ 0 | 0 | 0 | 0 | 377 |
Cash dividends declared – common stock ($0.20 per share) | (1,934) | 0 | (1,934) | 0 | 0 | 0 |
Issuance of common stock, net of forfeitures | 1,166 | $ 0 | 5,470 | (4,304) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 320 | |||||
Repurchase of common stock | (26,636) | $ 0 | (26,636) | 0 | 0 | 0 |
Repurchase of common stock, shares | (1,091) | |||||
Repurchase of common stock for employee tax withholding | (2,300) | $ 0 | (2,300) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (99) | |||||
Stock compensation expense for options granted to purchase common stock | 145 | $ 0 | 145 | 0 | 0 | 0 |
Issuance of restricted stock units | 3,685 | 0 | 0 | 3,685 | 0 | 0 |
Change in unrealized gain on available-for-sale investment securities, net of taxes | (44) | 0 | 0 | 0 | (44) | 0 |
Balance at Jun. 30, 2015 | $ 234,865 | $ 8 | $ 277,465 | $ 33,734 | $ 0 | $ (76,342) |
Balance, Shares at Jun. 30, 2015 | 7,519 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.20 | $ 0 | $ 0.20 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 377 | $ 12,586 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,580 | 717 |
Deferred income taxes | 178 | 3,522 |
Net investment income from investments | (7,029) | (12,925) |
Stock compensation | 3,353 | 4,546 |
Excess tax benefit from share-based award activity | (934) | 0 |
Other | 28 | (13) |
Receivables: | ||
Securities borrowed | (88,596) | 0 |
Brokers, dealers and clearing organizations | (8,518) | (10,343) |
Customers | 314 | 135 |
Other | (580) | (240) |
Trading securities | 36,741 | (19,744) |
Prepaid expenses and other assets | 976 | (1,357) |
Changes in operating liabilities: | ||
Securities loaned | 89,550 | 0 |
Trading account securities sold but not yet purchased | (29,788) | 21,725 |
Accounts payable, accrued expenses and other liabilities | 51 | 4,898 |
Accrued compensation and benefits | (13,273) | (1,650) |
Brokers, dealers and clearing organizations | 0 | 10,807 |
Net cash (used in) provided by operating activities | (15,570) | 12,664 |
Cash flows from investing activities | ||
Purchases of investment securities and other investments | (818) | (41,507) |
Proceeds from sales of and distributions from investments | 14,107 | 26,610 |
Securities sold but not yet purchased | 215,074 | 302,006 |
Due from brokers, dealers and clearing organizations | (220,942) | (311,816) |
Purchase of securities lending business | (1,101) | 0 |
Purchases of furniture, equipment, software, and leasehold improvements | (1,175) | (3,257) |
Net cash provided by (used in) investing activities | 5,145 | (27,964) |
Cash flows from financing activities | ||
Repurchases of common stock | (28,936) | (17,329) |
Proceeds from sales of common stock | 635 | 1,561 |
Excess tax benefit from share-based award activity | 934 | 0 |
Net cash used in financing activities | (27,367) | (15,768) |
Cash and cash equivalents | ||
Net decrease in cash and cash equivalents | (37,792) | (31,068) |
Cash and cash equivalents, beginning of period | 108,962 | 207,973 |
Cash and cash equivalents, end of period | 71,170 | 176,905 |
Supplemental cash flows disclosures | ||
Income tax payments | 19 | 2,781 |
Interest payments | $ 18,426 | $ 7,219 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
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. Certain reclassifications have been made to prior period amounts in order to conform with the current period presentation. The results of operations for the three and six months ended June 30, 2015 and 2014 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, 2014 (“2014 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. |
Financial Instruments and Long-
Financial Instruments and Long-Term Investments | 6 Months Ended |
Jun. 30, 2015 | |
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 Measurement” (“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 (hedge funds and private equity funds), the Company classifies these investments within Level 2 or Level 3 depending on the redemption attributes of the Company’s investment. 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 the fund administrators are derived from the fair values of the underlying investments as of the reporting date. Fair Value Hierarchy The following tables set forth, by level within the fair value hierarchy, financial instruments and long-term investments accounted for under ASC 820 as of June 30, 2015 and December 31, 2014. 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 June 30, 2015 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiary: Marketable and non-public equity securities $ 4,022 $ 1,985 $ — $ 2,037 Convertible and fixed income debt instruments 16,935 — 16,935 — $ 20,957 $ 1,985 $ 16,935 $ 2,037 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 6,508 — — 6,508 Warrants 703 — — 703 7,211 — — 7,211 Investment funds 92,781 — 41,576 51,205 Total $ 120,949 $ 1,985 $ 58,511 $ 60,453 Securities sold but not yet purchased, at fair value: U.S. Treasury securities $ 290,981 $ 290,981 $ — $ — Marketable and non-public equity securities 7,847 7,847 — — Convertible and fixed income debt instruments 1,743 — 1,743 — Total $ 300,571 $ 298,828 $ 1,743 $ — As of June 30, 2015, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $60,453, or 4.8% 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 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 June 30, 2015: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 8,545 Over-the-counter trading activity $0.41 - $17.50/share $11.46 Black-Scholes $ 703 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 2.2% 2.2% 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 $51,205 of investments in 11 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, 2014 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiary: Marketable and non-public equity securities $ 14,832 $ 14,758 $ — $ 74 Listed options 2 2 — — Convertible and fixed income debt instruments 42,864 — 42,864 — 57,698 14,760 42,864 74 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 2,325 175 — 2,150 Warrants 964 — — 964 Designated as available-for-sale: Marketable equity securities 172 172 — — 3,461 347 — 3,114 Investment funds 104,888 — 58,292 46,596 Total $ 166,047 $ 15,107 $ 101,156 $ 49,784 Securities sold but not yet purchased, at fair value: U.S. Treasury securities $ 84,950 $ 84,950 $ — $ — Marketable and non-public equity securities 34,043 34,043 — — Convertible and fixed income debt instruments 2,317 — 2,317 — Total $ 121,310 $ 118,993 $ 2,317 $ — As of December 31, 2014, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $49,784, or 4.8% 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 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, 2014: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 2,224 Over-the-counter trading activity $0 - $34.00/share $11.56 Black-Scholes $ 964 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 2.1% 2.1% 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 $46,596 of investments in 10 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 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 and liabilities that are measured at fair value on a recurring basis for the three months ended June 30, 2015 and 2014. As of June 30, 2015 and 2014, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. Trading Securities Investment Funds Total Beginning balance, April 1, 2015 $ 2,856 $ 50,928 $ 53,784 Total net gains (losses) (realized/unrealized) Included in earnings 538 277 815 Included in other comprehensive income — — — Purchases 25,677 — 25,677 Sales/Distributions (19,823 ) — (19,823 ) Ending balance, June 30, 2015 $ 9,248 $ 51,205 $ 60,453 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 $ 673 $ 277 $ 950 Trading Securities Investment Funds Total Beginning balance, April 1, 2014 $ 3,884 $ 77,854 $ 81,738 Total net gains (losses) (realized/unrealized) Included in earnings 168 2,201 2,369 Included in other comprehensive income — — — Purchases 34,937 13,487 48,424 Sales/Distributions (29,470 ) (252 ) (29,722 ) Transfers out of Level 3 (33 ) — (33 ) Ending balance, June 30, 2014 $ 9,486 $ 93,290 $ 102,776 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 $ 102 $ 2,201 $ 2,303 There were no transfers into or out of Level 3 financial assets during the three months ended June 30, 2015. One transfer was made out of Level 3 and into Level 1 during the three months ended June 30, 2014 for an equity security that was previously a non-public equity security and during the applicable period became publicly traded. 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 six months ended June 30, 2015 and 2014. Trading Securities Investment Funds Total Beginning balance, January 1, 2015 $ 3,188 $ 46,596 $ 49,784 Total net gains (losses) (realized/unrealized) Included in earnings 235 661 896 Included in other comprehensive income — — — Purchases 39,097 750 39,847 Sales/Distributions (33,243 ) (47 ) (33,290 ) Transfers (out of) into Level 3 (29 ) 3,245 3,216 Ending balance, June 30, 2015 $ 9,248 $ 51,205 $ 60,453 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 $ 370 $ 661 $ 1,031 Trading Securities Trading Securities Sold not yet Purchased Investment Funds Total Beginning balance, January 1, 2014 $ 11,535 $ (1,499 ) $ 61,197 $ 71,233 Total net gains (losses) (realized/unrealized) Included in earnings 88 (122 ) 3,892 3,858 Included in other comprehensive income — — — — Purchases 48,779 6,043 28,487 83,309 Sales/Distributions (44,667 ) (4,422 ) (286 ) (49,375 ) Transfers out of Level 3 (6,249 ) — — (6,249 ) Ending balance, June 30, 2014 $ 9,486 $ — $ 93,290 $ 102,776 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 $ (275 ) $ — $ 3,810 $ 3,535 There was one transfer into Level 3 financial assets and out of Level 2 during the six months ended June 30, 2015 and one transfer out of Level 3 and into Level 1 for an equity security that was previously a non-public equity security and during the applicable period became publicly traded. Two transfers were made out of Level 3 and into Level 1 during the six months ended June 30, 2014, for equity securities that were previously non-public equity securities and during the applicable period became publicly traded. Gains and losses from Level 3 financial assets that are measured at fair value on a recurring basis, that are included in earnings for the three and six months ended June 30, 2015 and 2014, are reported in the following line descriptions on the Company’s consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total gains and losses included in earnings for the period: Institutional brokerage $ 136 $ 42 $ 137 $ 3 Net investment income 679 2,327 759 3,855 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage $ 271 $ (24 ) $ 272 $ (238 ) Net investment income 679 2,015 759 3,461 Items Measured at Fair Value on a Non-Recurring Basis The Company also measures certain financial assets and liabilities and other assets at fair value on a non-recurring basis including items such as intangibles, fixed assets and estimated contingent consideration payable. Adjustments to the fair value of these assets and liabilities usually result from the application of lower-of-cost-or-market accounting or impairments of individual assets. Adjustments to the fair value of contingent consideration payable would result from differences between the underlying forecasted securities lending results and actual results (see Note 3). Due to the nature of these assets, unobservable inputs are used to value these assets and liabilities. In determining the fair value, the Company analyzes various financial, performance, and market factors to estimate the fair value, including where applicable, market activity. As a result, these assets and liabilities are classified within Level 3 of the fair value hierarchy. During the three and six months ended June 30, 2015, except for the impact of the scheduled partial payment of contingent consideration payable, there were no assets or liabilities measured at fair value on a non-recurring basis for which there was a change in carrying value. During the year ended December 31, 2014, there were no assets or liabilities measured at fair value on a non-recurring basis for which there was a change in carrying value. Financial Instruments Held for Investment—Designated as Trading As of June 30, 2015, and December 31, 2014, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiary that are classified as trading securities. In addition, as of June 30, 2015 and December 31, 2014, the Company had short positions in U.S. Treasury securities held by other than its broker-dealer subsidiary that are 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 (loss) in the consolidated 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 (loss) in the consolidated statements of operations. During the three and six months ended June 30, 2015, the Company elected to account for one non-public equity security, purchased at a cost of $3,999, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net gains recognized on trading securities $ 3,717 $ 5,665 $ 6,408 $ 8,050 Less: Net gains recognized on trading securities sold during the period — (804 ) (24 ) (931 ) Unrealized gains recognized on trading securities still held at the reporting date $ 3,717 $ 4,861 $ 6,384 $ 7,119 As part of the Company’s investing activities, during the six months ended June 30, 2015, the Company entered into two short sales, totaling $200,000 face value, of 4.625% U.S. Treasury securities. These securities mature in November 2016. There were no such investing activities in the three months ended June 30, 2015. During the three months ended June 30, 2014, as part of the Company’s investing activities, the Company entered into one short-sale of a $75,000 face value 7.25% U.S. Treasury security maturing in May 2016. During the six months ended June 30, 2014, the Company also entered into two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities. These two securities which mature in November 2015 and February 2016, respectively, were settled in the fourth quarter of 2014. These positions are included in securities sold but not yet purchased on the Company’s consolidated balance sheets. Proceeds from open 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 consolidated balance sheets. Such amounts are not available for withdrawal and are subject to closure of the open short positions. During the three months ended June 30, 2015 and 2014, the Company incurred $3,712 and $3,083, respectively, of interest expense related to these transactions. During the six months ended June 30, 2015 and 2014, the Company incurred $6,909 and $4,760, 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. Fair Value of the Investments Valued at NAV As of June 30, 2015 and December 31, 2014, the Company had $92,781 and $104,888, respectively, of investments that are valued at NAV. The following table presents information about the Company’s investments in hedge funds and private equity funds measured at fair value based on NAV at June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 49,003 $ — $ 57,532 $ — Multi-strategy 32,835 — 37,890 — Private equity funds 10,943 1,745 9,466 2,586 Total $ 92,781 $ 1,745 $ 104,888 $ 2,586 Investments in hedge funds may be subject to lock-up restrictions or gates. A hedge fund lockup provision is a provision that provides that an investor may not make a withdrawal from the fund or may be subject to withdrawal fees. The purpose of a gate is to restrict the level of redemptions that an investor in a particular hedge fund can demand at any redemption date. All of the Company’s hedge fund investments have the ability to impose redemption gates. As of June 30, 2015, 45% of the fair value of the Company’s fund investments, or $41,576 of the hedge funds, was redeemable on either a monthly or quarterly basis with notice periods of 60 days or less, 34% of the fair value, or $31,536 of the hedge funds, was redeemable on a quarterly basis with notice periods of between 90 days and 180 days. In addition, 9% of the fair value, or $8,726 of the hedge funds, was subject to lockup provisions 30% of which will expire during 2015. The Company’s fixed income and credit-related hedge fund investments include funds that primarily employ long-short or relative value strategies in order to benefit from investments in undervalued or overvalued securities that are primarily debt or credit related. The Company’s multi-strategy fund investments include funds that pursue a variety of fixed income, credit and asset-backed strategies to realize short and long term gains. Management of these hedge funds has the ability to overweight or underweight different strategies to best capitalize on current investment opportunities. The Company’s private equity fund investments include funds that pursue multiple strategies including direct lending, asset securitization and real estate development. These investments by the Company are generally not redeemable with the funds. The nature of these fund investments is that distributions are received through the liquidation of the underlying assets of the fund. At June 30, 2015 it was estimated that these funds will be liquidated in the next three years. Financial Instruments Held for Investment—Designated as Available-for-Sale From time-to-time, the Company may have 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, they 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. As of June 30, 2015, the Company did not have any marketable equity securities classified as available-for-sale. Gross unrealized gains and losses on available-for-sale securities as of December 31, 2014 were as follows: December 31, 2014 Unrealized Cost Basis Gains Losses Fair Value Marketable equity securities $ 100 $ 72 $ — $ 172 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 consolidated statement of operations. The Company did not recognize any other-than-temporary impairment losses during the three and six months ended June 30, 2015 and 2014. As of June 30, 2014, the Company did not hold any marketable equity securities that were in an unrealized loss position. There were no sales of marketable equity securities classified as available-for-sale during the three months ended June 30, 2015. During the six months ended June 30, 2015, the Company sold its remaining marketable equity security classified as available-for-sale and received proceeds of $191 resulting in a gross gain of $91. There were no sales of marketable equity securities during the three and six months ended June 30, 2014. Other Comprehensive Income The following tables set forth the changes in the Company’s accumulated other comprehensive income by component for the period indicated along with detail regarding reclassifications from other comprehensive income. All such reclassifications from other comprehensive income are included in net investment income in the Company’s consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Accumulated other comprehensive income, beginning balance $ — $ 53 $ 44 $ 34 Other comprehensive income before reclassifications — 5 — 24 Amounts reclassified from other comprehensive income — — (44 ) — Accumulated other comprehensive income, at period end $ — $ 58 $ — $ 58 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reclassifications from other comprehensive income: Realized gains on sale of securities $ — $ — $ 44 $ — Other Investments, at Cost Other investments consisted of the following as of the dates indicated: June 30, 2015 December 31, 2014 Non-public equity securities $ 7,000 $ 7,000 The Company evaluates its non-public equity securities, 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 six months ended June 30, 2015 and 2014. During the three and six months ended June 30, 2015, there were no sales of investments carried at cost. During the three and six months ended June 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 six months ended June 30, 2014, the Company received $5,000 reflecting the full repayment at its maturity of a corporate debt investment that was carried at cost. |
Securities Lending
Securities Lending | 6 Months Ended |
Jun. 30, 2015 | |
Securities Lending [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”) agreed to purchase LCM’s securities lending business (the “Transaction Agreement”) and on August 4, 2014, the Company completed its purchase of this business. 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 Company believes that this acquisition will be accretive to its overall revenue per employee and operating margin. 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 18 month period subsequent to the closing. During the six months ended June 30, 2015, the Company made such an additional payment of $1,101 and as of June 30, 2015, the Company has estimated its aggregate remaining contingent payments to be $2,969. This estimated contingent obligation is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. 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 purchase, the Company recorded goodwill of $2,570 and a finite-lived intangible asset related to acquired customer relationships initially valued at $2,500. The goodwill and intangible asset balances are included in the Company’s capital markets segment and these balances are expected to be deductible for tax purposes. The customer relationship intangible assets will be amortized over their estimated useful life of seven years on a straight-line basis. During the three and six months ended June 30, 2015, the Company recorded $89 and $179, respectively, of amortization expense related to this intangible asset that is included in other operating expenses in the Company’s consolidated statements of operations. The following tables presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 683,269 $ — $ 683,269 $ 683,269 $ — Securities loaned $ 685,266 $ — $ 685,266 $ 685,266 $ — As of December 31, 2014 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 594,674 $ — $ 594,674 $ 594,674 $ — Securities loaned $ 595,717 $ — $ 595,717 $ 595,717 $ — (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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes: During the three and six months ended June 30, 2015, the Company recorded tax provisions of $1,499 and $178, 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 six months ended June 30, 2015 were 34.1% and 32.1%, respectively. These tax rates differed from statutory tax rates primarily due to the effects of capital loss carryforwards subject to a valuation allowance that were projected to be utilized during the year. During the three and six months ended June 30, 2014, the Company recorded tax provisions of $1,999 and $5,404, respectively. The Company’s effective tax rates for the three and six months ended June 30, 2014 were 22.3% and 30.0%, respectively. These tax rates differed from statutory tax rates primarily due to the effects of capital loss carryforwards subject to a valuation allowance that were projected to be utilized during the year. At December 31, 2014, the Company’s net deferred tax assets totaled $32,183 and were partially offset by a valuation allowance of $3,535. This valuation allowance related to capital loss carryforwards 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 June 30, 2015, the Company determined that it was more likely than not that the capital loss carryforwards subject to the valuation allowance would be utilized in 2015. The Company’s projected utilization of the capital loss carryforward deferred tax asset and corresponding release of the remaining valuation allowance is reflected in the calculation of the Company’s estimated annual effective tax rate. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | 5. Regulatory Capital Requirements: FBRCM, the Company’s broker-dealer subsidiary, 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 June 30, 2015, FBRCM had net capital of $52,504, which was $49,826 in excess of its required net capital of $2,678. |
Income Per Share
Income Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Income Per Share | 6. Income 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, including restricted stock units (“RSUs”) that are not subject to forfeiture. Diluted earnings per share includes the impact of dilutive securities such as stock options, unvested shares of restricted stock and RSUs, that are subject to forfeiture. The following tables present the computations of basic and diluted income per share for the periods indicated: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,084 8,084 10,795 10,795 Stock options, unvested restricted stock and RSUs (in thousands) — 1,075 — 1,170 Weighted average common and common equivalent shares outstanding (in thousands) 8,084 9,159 10,795 11,965 Net income applicable to common stock $ 2,899 $ 2,899 $ 6,976 $ 6,976 Net income per common share $ 0.36 $ 0.32 $ 0.65 $ 0.58 Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,453 8,453 10,927 10,927 Stock options, unvested restricted stock and RSUs (in thousands) — 1,181 — 1,123 Weighted average common and common equivalent shares outstanding (in thousands) 8,453 9,634 10,927 12,050 Net income applicable to common stock $ 377 $ 377 $ 12,586 $ 12,586 Net income per common share $ 0.04 $ 0.04 $ 1.15 $ 1.04 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock Options—Employees and directors 680 728 620 730 Stock Options—Non-employee 32 27 32 27 Restricted Stock, unvested 11 6 11 6 Restricted Stock Units, unvested 1,070 1,056 1,024 1,100 Total 1,793 1,817 1,687 1,863 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies: Litigation As of June 30, 2015, except as described below, 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. FBRCM has been named a defendant in the putative class action lawsuit Waterford Township Police & Fire, Retirement System, vs. Regional Management Corp. et al., pending in the United States District Court for the Southern District of New York. The amended complaint, filed on November 24, 2014 (the “Amended Complaint”), names FBRCM as a co-managing underwriter of offerings in September 2013 and December 2013. Plaintiffs allege that the Registration Statement and Prospectus used in connection with these offerings were negligently prepared and, as a result, contained untrue statements of material fact and omitted to state other facts necessary to make the statements made not misleading. The Amended Complaint asserts claims against all the underwriters under Sections 11 and 12 of the Securities Act. Regional Management has agreed to indemnify all the underwriters, including FBRCM, pursuant to the operative underwriting agreement. In response to the defendants’ motions to dismiss, filed on January 23, 2015, the putative class plaintiffs filed a second amended complaint (the “Second Amended Complaint”), which shall serve as the operative complaint. On April 28, 2015 the underwriter defendants filed a motion to dismiss the Second Amended Complaint. On June 12, 2015 the plaintiffs filed a motion in opposition to the motion to dismiss, and on July 14, 2015 the underwriter defendants filed their reply brief. 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. The pending case discussed above involving FBRCM is at a preliminary stage, and based on management’s review with counsel and present information known by management, a loss contingency for this matter was not probable and estimable as of June 30, 2015. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity: Share Repurchases During the three and six months ended June 30, 2015, the Company repurchased 134,868 shares and 1,090,664 shares, respectively, of its common stock in open market or privately negotiated transactions at weighted average share prices of $21.40 per share and $24.42 per share, respectively, for a total cost of $2,887 and $26,636, respectively. During the three and six months ended June 30, 2014, the Company repurchased 400,195 shares and 662,012 shares, respectively, of its common stock in open market or privately negotiated transactions at weighted average share prices of $26.19 per share and $26.18 per share, respectively, for a total cost of $10,480 and $17,329, respectively. On April 21, 2015, the Company’s Board of Directors approved an increase in the Company’s repurchase authorization to 750,000 shares. As of June 30, 2015, the Company had remaining authority to repurchase 615,132 additional shares. The Company also purchases shares of its common stock from recipients of stock-based compensation awards upon the vesting of RSU and restricted stock awards, and the exercise of options to purchase stock, as recipients sell shares to meet their tax obligations. During the three and six months ended June 30, 2015, the Company purchased 9,000 shares and 99,000 shares, respectively, of common stock at weighted average share prices of $22.22 per share and $23.23 per share, respectively, for a total cost of $200 and $2,300, respectively, for this purpose. During the year ended December 31, 2014, the Company purchased 71,000 shares of common stock at a weighted average share price of $25.68 per share for a total cost of $1,823 for this purpose. Dividends On June 16, 2015, the Company announced that its Board of Directors approved the declaration of a quarterly cash dividend of $0.20 per common share to be paid on August 28, 2015 to shareholders of record as of the close of business on July 31, 2015. Unvested RSUs and restricted shares carry dividend rights in which dividends are payable as the RSUs and restricted shares vest in accordance with the respective underlying grants. As of June 30, 2015, the Company had $430 of cash dividends payable related to such unvested RSUs and restricted shares. Note that with respect to RSUs that vest based on both individual service requirements and the Company’s achievement of specific performance goals, the Company’s dividend payable is consistent with the Company’s assessment of the rate at which these awards would vest. 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 six months ended June 30, 2015, the Company recognized compensation expense of $55 and $139, respectively, related to the Purchase Plan. For the three and six months ended June 30, 2014, the Company recognized compensation expense of $39 and $188, respectively, related to the Purchase Plan. 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock Options $ — $ 27 $ 7 $ (85 ) Restricted shares 72 72 152 135 RSUs 916 2,235 3,056 4,308 The following table presents issuance activity related to grants of these awards for the period indicated: Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Stock Options Restricted Shares RSUs Stock Options Restricted Shares RSUs Stock-based award issuances — 17,184 48,625 — 17,184 359,342 Grant date fair value per share $ — $ 22.55 $ 22.01 $ — $ 22.55 $ 23.47 For all RSU awards that vest based on individual service requirements and the Company’s achievement of specified performance goals, the Company assesses the probability of achieving these goals at each reporting date. Included in the RSUs granted during the six months ended June 30, 2015 were 230,258 RSU awards that will vest based on both individual service requirements and the Company’s achievement of a specified performance goal. For awards granted in 2015, the performance goal will be met at (1) a 50% rate 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, 2015 (the “2015 performance period”); (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 2015 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 2015 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 2015 performance period, no performance share units will be earned and the award will be forfeited. During the three and six months ended June 30, 2015, compensation expense was recognized based on the Company’s assessment that the awards would vest at a 50% rate. Regarding 277,405 RSU awards granted in 2014 that include performance goals, the performance goal will be met at (1) a 50% rate 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 (the “2014 performance period”); (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 2014 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 2014 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 2014 performance period, no performance share units will be earned and the award will be forfeited. During the three and six months ended June 30, 2015, compensation expense was recognized based on the Company’s assessment that the minimum performance threshold will not be met. As a result of this assessment, $1,042 of stock compensation expense recognized during the year ended December 31, 2014 was reversed during the three months ended June 30, 2015. Regarding 375,000 RSU awards granted in 2013 that include performance goals, the performance goal will be met at (1) a 100% rate if the combined net worth of the Company, measured on a per share basis has increased by an amount equal to a 7% compound annual growth rate over the three-year period beginning on April 1, 2013 (the “2013 performance period”); (2) a 50% rate if the combined net worth of the Company, measured on a per share basis, has increased by an amount equal to a 4% compound annual growth rate over the 2013 performance period; and (3) a proportional rate between 50% and 100% in the event the net worth of the Company, measured on a per share basis has increased by an amount between a 4% and 7% compound annual growth over the 2013 performance period. During the three and six months ended June 30, 2015, compensation expense was recognized based on the Company’s assessment that the awards would vest at a 100% 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 June 30, 2015 Stock Options Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ — $ 372 $ 5,441 $ 3,907 Unvested awards — 17,184 1,145,331 490,129 Weighted average vesting period — 0.96 years 0.78 years 1.44 years (1) The unvested Performance Condition RSUs and unrecognized compensation amounts specified are based on the Company’s assessment of the rate at which the performance conditions will be met and the related percentage of awards that will vest. The total unvested awards that include a performance condition and related unrecognized compensation are 882,663 and $13,269, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. 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 six months ended June 30, 2015, the Company granted 26,549 such RSUs with an aggregate fair value upon grant date of $630. For the six months ended June 30, 2014, the Company granted 294,843 comparable RSUs with an aggregate fair value upon grant date of $7,317. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 9. 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 sales, trading and research 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 of each segment. The following tables illustrate the financial information for the Company’s segments for the periods indicated: Three Months Ended June 30, 2015 June 30, 2014 Capital Markets Principal Investing Total Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 29,728 $ — $ 29,728 $ 35,784 $ — $ 35,784 Institutional brokerage 12,441 — 12,441 14,643 — 14,643 Net investment income — 3,679 3,679 — 9,091 9,091 Interest 8,008 — 8,008 245 25 270 Dividends and other 64 128 192 240 153 393 Total revenues 50,241 3,807 54,048 50,912 9,269 60,181 Interest expense 6,080 3,712 9,792 — 3,083 3,083 Revenues, net of interest expense 44,161 95 44,256 50,912 6,186 57,098 Operating expenses: Variable 17,112 (18 ) 17,094 21,140 1,139 22,279 Fixed 22,277 487 22,764 25,193 651 25,844 Total 39,389 469 39,858 46,333 1,790 48,123 Pre-tax income (loss) $ 4,772 $ (374 ) $ 4,398 $ 4,579 $ 4,396 $ 8,975 Compensation and benefits: Variable $ 11,120 $ (20 ) $ 11,100 $ 16,018 $ 1,135 $ 17,153 Fixed 12,835 340 13,175 14,552 365 14,917 Total $ 23,955 $ 320 $ 24,275 $ 30,570 $ 1,500 $ 32,070 Total assets $ 860,722 $ 408,247 $ 1,268,969 $ 349,082 $ 397,039 $ 746,121 Total net assets $ 168,299 $ 66,566 $ 234,865 $ 193,877 $ 104,060 $ 297,937 Six Months Ended June 30, 2015 June 30, 2014 Capital Markets Principal Investing Total Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 42,403 $ — $ 42,403 $ 72,423 $ — $ 72,423 Institutional brokerage 24,684 — 24,684 29,734 — 29,734 Net investment income — 7,029 7,029 — 12,925 12,925 Interest 14,991 2 14,993 432 122 554 Dividends and other 211 252 463 301 279 580 Total revenues 82,289 7,283 89,572 102,890 13,326 116,216 Interest expense 11,312 6,909 18,221 — 4,760 4,760 Revenues, net of interest expense 70,977 374 71,351 102,890 8,566 111,456 Operating expenses: Variable 22,503 5 22,508 40,684 1,358 42,042 Fixed 47,068 1,220 48,288 50,001 1,423 51,424 Total 69,571 1,225 70,796 90,685 2,781 93,466 Pre-tax income (loss) $ 1,406 $ (851 ) $ 555 $ 12,205 $ 5,785 $ 17,990 Compensation and benefits: Variable $ 13,609 $ — $ 13,609 $ 32,121 $ 1,352 $ 33,473 Fixed 27,893 728 28,621 29,188 709 29,897 Total $ 41,502 $ 728 $ 42,230 $ 61,309 $ 2,061 $ 63,370 Total assets $ 860,722 $ 408,247 $ 1,268,969 $ 349,082 $ 397,039 $ 746,121 Total net assets $ 168,299 $ 66,566 $ 234,865 $ 193,877 $ 104,060 $ 297,937 The total assets of the Company’s principal investing segment increased to $408,247 as of June 30, 2015 from $204,159 as of December 31, 2014. The increase in these total assets was a result of investing activities during the six months ended June 30, 2015, in particular two short-sales totaling $200,000, face value, of 4.625% U.S. Treasury securities that were outstanding as of June 30, 2015. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 10. Recent Accounting Pronouncements: 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, 2017, 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 2018. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. The Company does not anticipate that the adoption of ASU 2014-15 will have a material impact on its consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” (“ASU 2015-01”). The main objective of ASU 2015-01 is to eliminate from U.S. GAAP the concept of extraordinary items; however, the requirement to disclose unusual and infrequent items still exists. Under this guidance, an entity will no longer segregate extraordinary items from the results of ordinary operations; separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or disclose income taxes and earnings-per-share data applicable to an extraordinary item. The ASU affects the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. ASU 2015-01 is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2015. Early adoption is permitted if guidance is applied as of the beginning of the annual period of adoption. The Company does not anticipate that the adoption of ASU 2015-01 will have a material impact on its consolidated financial statements or disclosures. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” (“ASU 2015-05”). This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not anticipate that the adoption of ASU 2015-05 will have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” (“ASU 2015-07”). This ASU provides guidance for eliminating the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient for fair value. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. Although classification within the fair value hierarchy is no longer required, an entity must disclose the amount of investments measured using the NAV in order to permit reconciliation of the fair value of investments in the hierarchy to the corresponding line items in the balance sheet. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not anticipate that the adoption of ASU 2015-07 will have a material impact on its consolidated financial statements or disclosures. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events: On July 23, 2015, the Company announced that it had entered into an agreement to acquire MLV & Co. LLC, an investment banking and brokerage firm focused on equity capital markets and a leading provider of At-the-Market (“ATM”) offerings. The transaction has been approved by the board of directors of both companies and is expected to close in the third quarter of 2015 subject to customary closing conditions and regulatory approval. |
Financial Instruments and Lon21
Financial Instruments and Long-Term Investments (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 Measurement” (“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. |
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. |
Investments in Marketable Securities | As of June 30, 2015, and December 31, 2014, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiary that are classified as trading securities. In addition, as of June 30, 2015 and December 31, 2014, the Company had short positions in U.S. Treasury securities held by other than its broker-dealer subsidiary that are 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 (loss) in the consolidated 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 (loss) in the consolidated statements of operations. During the three and six months ended June 30, 2015, the Company elected to account for one non-public equity security, purchased at a cost of $3,999, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net gains recognized on trading securities $ 3,717 $ 5,665 $ 6,408 $ 8,050 Less: Net gains recognized on trading securities sold during the period — (804 ) (24 ) (931 ) Unrealized gains recognized on trading securities still held at the reporting date $ 3,717 $ 4,861 $ 6,384 $ 7,119 As part of the Company’s investing activities, during the six months ended June 30, 2015, the Company entered into two short sales, totaling $200,000 face value, of 4.625% U.S. Treasury securities. These securities mature in November 2016. There were no such investing activities in the three months ended June 30, 2015. During the three months ended June 30, 2014, as part of the Company’s investing activities, the Company entered into one short-sale of a $75,000 face value 7.25% U.S. Treasury security maturing in May 2016. During the six months ended June 30, 2014, the Company also entered into two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities. These two securities which mature in November 2015 and February 2016, respectively, were settled in the fourth quarter of 2014. These positions are included in securities sold but not yet purchased on the Company’s consolidated balance sheets. Proceeds from open 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 consolidated balance sheets. Such amounts are not available for withdrawal and are subject to closure of the open short positions. During the three months ended June 30, 2015 and 2014, the Company incurred $3,712 and $3,083, respectively, of interest expense related to these transactions. During the six months ended June 30, 2015 and 2014, the Company incurred $6,909 and $4,760, 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 From time-to-time, the Company may have 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, they 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. As of June 30, 2015, the Company did not have any marketable equity securities classified as available-for-sale. Gross unrealized gains and losses on available-for-sale securities as of December 31, 2014 were as follows: |
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”) agreed to purchase LCM’s securities lending business (the “Transaction Agreement”) and on August 4, 2014, the Company completed its purchase of this business. 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 Company believes that this acquisition will be accretive to its overall revenue per employee and operating margin. 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 18 month period subsequent to the closing. During the six months ended June 30, 2015, the Company made such an additional payment of $1,101 and as of June 30, 2015, the Company has estimated its aggregate remaining contingent payments to be $2,969. This estimated contingent obligation is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. 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 purchase, the Company recorded goodwill of $2,570 and a finite-lived intangible asset related to acquired customer relationships initially valued at $2,500. The goodwill and intangible asset balances are included in the Company’s capital markets segment and these balances are expected to be deductible for tax purposes. The customer relationship intangible assets will be amortized over their estimated useful life of seven years on a straight-line basis. During the three and six months ended June 30, 2015, the Company recorded $89 and $179, respectively, of amortization expense related to this intangible asset that is included in other operating expenses in the Company’s consolidated statements of operations. The following tables presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 683,269 $ — $ 683,269 $ 683,269 $ — Securities loaned $ 685,266 $ — $ 685,266 $ 685,266 $ — As of December 31, 2014 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 594,674 $ — $ 594,674 $ 594,674 $ — Securities loaned $ 595,717 $ — $ 595,717 $ 595,717 $ — (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. |
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 six months ended June 30, 2015, the Company recognized compensation expense of $55 and $139, respectively, related to the Purchase Plan. For the three and six months ended June 30, 2014, the Company recognized compensation expense of $39 and $188, respectively, related to the Purchase Plan. |
Recent Accounting Pronouncements | 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, 2017, 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 2018. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. The Company does not anticipate that the adoption of ASU 2014-15 will have a material impact on its consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items,” (“ASU 2015-01”). The main objective of ASU 2015-01 is to eliminate from U.S. GAAP the concept of extraordinary items; however, the requirement to disclose unusual and infrequent items still exists. Under this guidance, an entity will no longer segregate extraordinary items from the results of ordinary operations; separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or disclose income taxes and earnings-per-share data applicable to an extraordinary item. The ASU affects the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. ASU 2015-01 is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2015. Early adoption is permitted if guidance is applied as of the beginning of the annual period of adoption. The Company does not anticipate that the adoption of ASU 2015-01 will have a material impact on its consolidated financial statements or disclosures. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” (“ASU 2015-05”). This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not anticipate that the adoption of ASU 2015-05 will have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” (“ASU 2015-07”). This ASU provides guidance for eliminating the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient for fair value. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. Although classification within the fair value hierarchy is no longer required, an entity must disclose the amount of investments measured using the NAV in order to permit reconciliation of the fair value of investments in the hierarchy to the corresponding line items in the balance sheet. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not anticipate that the adoption of ASU 2015-07 will have a material impact on its consolidated financial statements or disclosures. |
Financial Instruments and Lon22
Financial Instruments and Long-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Items Measured at Fair Value On a Recurring Basis | The following tables set forth, by level within the fair value hierarchy, financial instruments and long-term investments accounted for under ASC 820 as of June 30, 2015 and December 31, 2014. 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 June 30, 2015 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiary: Marketable and non-public equity securities $ 4,022 $ 1,985 $ — $ 2,037 Convertible and fixed income debt instruments 16,935 — 16,935 — $ 20,957 $ 1,985 $ 16,935 $ 2,037 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 6,508 — — 6,508 Warrants 703 — — 703 7,211 — — 7,211 Investment funds 92,781 — 41,576 51,205 Total $ 120,949 $ 1,985 $ 58,511 $ 60,453 Securities sold but not yet purchased, at fair value: U.S. Treasury securities $ 290,981 $ 290,981 $ — $ — Marketable and non-public equity securities 7,847 7,847 — — Convertible and fixed income debt instruments 1,743 — 1,743 — Total $ 300,571 $ 298,828 $ 1,743 $ — December 31, 2014 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiary: Marketable and non-public equity securities $ 14,832 $ 14,758 $ — $ 74 Listed options 2 2 — — Convertible and fixed income debt instruments 42,864 — 42,864 — 57,698 14,760 42,864 74 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 2,325 175 — 2,150 Warrants 964 — — 964 Designated as available-for-sale: Marketable equity securities 172 172 — — 3,461 347 — 3,114 Investment funds 104,888 — 58,292 46,596 Total $ 166,047 $ 15,107 $ 101,156 $ 49,784 Securities sold but not yet purchased, at fair value: U.S. Treasury securities $ 84,950 $ 84,950 $ — $ — Marketable and non-public equity securities 34,043 34,043 — — Convertible and fixed income debt instruments 2,317 — 2,317 — Total $ 121,310 $ 118,993 $ 2,317 $ — |
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 June 30, 2015: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 8,545 Over-the-counter trading activity $0.41 - $17.50/share $11.46 Black-Scholes $ 703 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 2.2% 2.2% The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of December 31, 2014: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 2,224 Over-the-counter trading activity $0 - $34.00/share $11.56 Black-Scholes $ 964 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 2.1% 2.1% |
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 and liabilities that are measured at fair value on a recurring basis for the three months ended June 30, 2015 and 2014. As of June 30, 2015 and 2014, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. Trading Securities Investment Funds Total Beginning balance, April 1, 2015 $ 2,856 $ 50,928 $ 53,784 Total net gains (losses) (realized/unrealized) Included in earnings 538 277 815 Included in other comprehensive income — — — Purchases 25,677 — 25,677 Sales/Distributions (19,823 ) — (19,823 ) Ending balance, June 30, 2015 $ 9,248 $ 51,205 $ 60,453 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 $ 673 $ 277 $ 950 Trading Securities Investment Funds Total Beginning balance, April 1, 2014 $ 3,884 $ 77,854 $ 81,738 Total net gains (losses) (realized/unrealized) Included in earnings 168 2,201 2,369 Included in other comprehensive income — — — Purchases 34,937 13,487 48,424 Sales/Distributions (29,470 ) (252 ) (29,722 ) Transfers out of Level 3 (33 ) — (33 ) Ending balance, June 30, 2014 $ 9,486 $ 93,290 $ 102,776 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 $ 102 $ 2,201 $ 2,303 Trading Securities Investment Funds Total Beginning balance, January 1, 2015 $ 3,188 $ 46,596 $ 49,784 Total net gains (losses) (realized/unrealized) Included in earnings 235 661 896 Included in other comprehensive income — — — Purchases 39,097 750 39,847 Sales/Distributions (33,243 ) (47 ) (33,290 ) Transfers (out of) into Level 3 (29 ) 3,245 3,216 Ending balance, June 30, 2015 $ 9,248 $ 51,205 $ 60,453 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 $ 370 $ 661 $ 1,031 Trading Securities Trading Securities Sold not yet Purchased Investment Funds Total Beginning balance, January 1, 2014 $ 11,535 $ (1,499 ) $ 61,197 $ 71,233 Total net gains (losses) (realized/unrealized) Included in earnings 88 (122 ) 3,892 3,858 Included in other comprehensive income — — — — Purchases 48,779 6,043 28,487 83,309 Sales/Distributions (44,667 ) (4,422 ) (286 ) (49,375 ) Transfers out of Level 3 (6,249 ) — — (6,249 ) Ending balance, June 30, 2014 $ 9,486 $ — $ 93,290 $ 102,776 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 $ (275 ) $ — $ 3,810 $ 3,535 |
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, that are included in earnings for the three and six months ended June 30, 2015 and 2014, are reported in the following line descriptions on the Company’s consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total gains and losses included in earnings for the period: Institutional brokerage $ 136 $ 42 $ 137 $ 3 Net investment income 679 2,327 759 3,855 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage $ 271 $ (24 ) $ 272 $ (238 ) Net investment income 679 2,015 759 3,461 |
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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net gains recognized on trading securities $ 3,717 $ 5,665 $ 6,408 $ 8,050 Less: Net gains recognized on trading securities sold during the period — (804 ) (24 ) (931 ) Unrealized gains recognized on trading securities still held at the reporting date $ 3,717 $ 4,861 $ 6,384 $ 7,119 |
Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value | The following table presents information about the Company’s investments in hedge funds and private equity funds measured at fair value based on NAV at June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 49,003 $ — $ 57,532 $ — Multi-strategy 32,835 — 37,890 — Private equity funds 10,943 1,745 9,466 2,586 Total $ 92,781 $ 1,745 $ 104,888 $ 2,586 |
Financial Instruments Held for Investment - Designated as Available-for-Sale | Gross unrealized gains and losses on available-for-sale securities as of December 31, 2014 were as follows: December 31, 2014 Unrealized Cost Basis Gains Losses Fair Value Marketable equity securities $ 100 $ 72 $ — $ 172 |
Detail of the Amounts Included in Accumulated Other Comprehensive Income and Reclassified to Earnings | The following tables set forth the changes in the Company’s accumulated other comprehensive income by component for the period indicated along with detail regarding reclassifications from other comprehensive income. All such reclassifications from other comprehensive income are included in net investment income in the Company’s consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Accumulated other comprehensive income, beginning balance $ — $ 53 $ 44 $ 34 Other comprehensive income before reclassifications — 5 — 24 Amounts reclassified from other comprehensive income — — (44 ) — Accumulated other comprehensive income, at period end $ — $ 58 $ — $ 58 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reclassifications from other comprehensive income: Realized gains on sale of securities $ — $ — $ 44 $ — |
Other Investments, at Cost | Other investments consisted of the following as of the dates indicated: June 30, 2015 December 31, 2014 Non-public equity securities $ 7,000 $ 7,000 |
Securities Lending (Tables)
Securities Lending (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Securities Lending [Abstract] | |
Gross and Net Securities Borrowing and Lending Balances | The following tables presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of June 30, 2015 and December 31, 2014: As of June 30, 2015 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 683,269 $ — $ 683,269 $ 683,269 $ — Securities loaned $ 685,266 $ — $ 685,266 $ 685,266 $ — As of December 31, 2014 Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s Securities borrowed $ 594,674 $ — $ 594,674 $ 594,674 $ — Securities loaned $ 595,717 $ — $ 595,717 $ 595,717 $ — (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. |
Income Per Share (Tables)
Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Income Per Share | The following tables present the computations of basic and diluted income per share for the periods indicated: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,084 8,084 10,795 10,795 Stock options, unvested restricted stock and RSUs (in thousands) — 1,075 — 1,170 Weighted average common and common equivalent shares outstanding (in thousands) 8,084 9,159 10,795 11,965 Net income applicable to common stock $ 2,899 $ 2,899 $ 6,976 $ 6,976 Net income per common share $ 0.36 $ 0.32 $ 0.65 $ 0.58 Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,453 8,453 10,927 10,927 Stock options, unvested restricted stock and RSUs (in thousands) — 1,181 — 1,123 Weighted average common and common equivalent shares outstanding (in thousands) 8,453 9,634 10,927 12,050 Net income applicable to common stock $ 377 $ 377 $ 12,586 $ 12,586 Net income per common share $ 0.04 $ 0.04 $ 1.15 $ 1.04 |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock Options—Employees and directors 680 728 620 730 Stock Options—Non-employee 32 27 32 27 Restricted Stock, unvested 11 6 11 6 Restricted Stock Units, unvested 1,070 1,056 1,024 1,100 Total 1,793 1,817 1,687 1,863 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Compensation Expense Related to Awards | The following table presents compensation expense related to these awards for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock Options $ — $ 27 $ 7 $ (85 ) Restricted shares 72 72 152 135 RSUs 916 2,235 3,056 4,308 |
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 Six Months Ended June 30, 2015 June 30, 2015 Stock Options Restricted Shares RSUs Stock Options Restricted Shares RSUs Stock-based award issuances — 17,184 48,625 — 17,184 359,342 Grant date fair value per share $ — $ 22.55 $ 22.01 $ — $ 22.55 $ 23.47 |
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 June 30, 2015 Stock Options Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ — $ 372 $ 5,441 $ 3,907 Unvested awards — 17,184 1,145,331 490,129 Weighted average vesting period — 0.96 years 0.78 years 1.44 years (1) The unvested Performance Condition RSUs and unrecognized compensation amounts specified are based on the Company’s assessment of the rate at which the performance conditions will be met and the related percentage of awards that will vest. The total unvested awards that include a performance condition and related unrecognized compensation are 882,663 and $13,269, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 June 30, 2014 Capital Markets Principal Investing Total Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 29,728 $ — $ 29,728 $ 35,784 $ — $ 35,784 Institutional brokerage 12,441 — 12,441 14,643 — 14,643 Net investment income — 3,679 3,679 — 9,091 9,091 Interest 8,008 — 8,008 245 25 270 Dividends and other 64 128 192 240 153 393 Total revenues 50,241 3,807 54,048 50,912 9,269 60,181 Interest expense 6,080 3,712 9,792 — 3,083 3,083 Revenues, net of interest expense 44,161 95 44,256 50,912 6,186 57,098 Operating expenses: Variable 17,112 (18 ) 17,094 21,140 1,139 22,279 Fixed 22,277 487 22,764 25,193 651 25,844 Total 39,389 469 39,858 46,333 1,790 48,123 Pre-tax income (loss) $ 4,772 $ (374 ) $ 4,398 $ 4,579 $ 4,396 $ 8,975 Compensation and benefits: Variable $ 11,120 $ (20 ) $ 11,100 $ 16,018 $ 1,135 $ 17,153 Fixed 12,835 340 13,175 14,552 365 14,917 Total $ 23,955 $ 320 $ 24,275 $ 30,570 $ 1,500 $ 32,070 Total assets $ 860,722 $ 408,247 $ 1,268,969 $ 349,082 $ 397,039 $ 746,121 Total net assets $ 168,299 $ 66,566 $ 234,865 $ 193,877 $ 104,060 $ 297,937 Six Months Ended June 30, 2015 June 30, 2014 Capital Markets Principal Investing Total Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 42,403 $ — $ 42,403 $ 72,423 $ — $ 72,423 Institutional brokerage 24,684 — 24,684 29,734 — 29,734 Net investment income — 7,029 7,029 — 12,925 12,925 Interest 14,991 2 14,993 432 122 554 Dividends and other 211 252 463 301 279 580 Total revenues 82,289 7,283 89,572 102,890 13,326 116,216 Interest expense 11,312 6,909 18,221 — 4,760 4,760 Revenues, net of interest expense 70,977 374 71,351 102,890 8,566 111,456 Operating expenses: Variable 22,503 5 22,508 40,684 1,358 42,042 Fixed 47,068 1,220 48,288 50,001 1,423 51,424 Total 69,571 1,225 70,796 90,685 2,781 93,466 Pre-tax income (loss) $ 1,406 $ (851 ) $ 555 $ 12,205 $ 5,785 $ 17,990 Compensation and benefits: Variable $ 13,609 $ — $ 13,609 $ 32,121 $ 1,352 $ 33,473 Fixed 27,893 728 28,621 29,188 709 29,897 Total $ 41,502 $ 728 $ 42,230 $ 61,309 $ 2,061 $ 63,370 Total assets $ 860,722 $ 408,247 $ 1,268,969 $ 349,082 $ 397,039 $ 746,121 Total net assets $ 168,299 $ 66,566 $ 234,865 $ 193,877 $ 104,060 $ 297,937 |
Financial Instruments and Lon27
Financial Instruments and Long-Term Investments - Items Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for trading activities at broker-dealer subsidiary | $ 20,957 | $ 57,698 |
Financial instruments held for investment activities | 7,211 | 3,461 |
Investment funds | 92,781 | 104,888 |
Total | 120,949 | 166,047 |
Securities sold but not yet purchased, at fair value | 300,571 | 121,310 |
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 | 4,022 | 14,832 |
Securities sold but not yet purchased, at fair value | 7,847 | 34,043 |
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 | 16,935 | 42,864 |
Securities sold but not yet purchased, at fair value | 1,743 | 2,317 |
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 | 290,981 | 84,950 |
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 | 2 | |
Marketable Equity Securities [Member] | Available-for-Sale Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 172 | |
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 | 1,985 | 14,760 |
Financial instruments held for investment activities | 347 | |
Investment funds | 0 | |
Total | 1,985 | 15,107 |
Securities sold but not yet purchased, at fair value | 298,828 | 118,993 |
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 | 1,985 | 14,758 |
Securities sold but not yet purchased, at fair value | 7,847 | 34,043 |
Estimated Fair Value, Level 1 [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 | 0 | |
Securities sold but not yet purchased, at fair value | 0 | |
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 | 290,981 | 84,950 |
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 | 2 | |
Estimated Fair Value, Level 1 [Member] | Marketable Equity Securities [Member] | Available-for-Sale Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 172 | |
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 | 16,935 | 42,864 |
Financial instruments held for investment activities | 0 | |
Investment funds | 41,576 | 58,292 |
Total | 58,511 | 101,156 |
Securities sold but not yet purchased, at fair value | 1,743 | 2,317 |
Estimated Fair Value, Level 2 [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 | 0 | |
Securities sold but not yet purchased, at fair value | 0 | |
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 | 16,935 | 42,864 |
Securities sold but not yet purchased, at fair value | 1,743 | 2,317 |
Estimated Fair Value, Level 2 [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 | 0 | |
Estimated Fair Value, Level 2 [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 | 0 | |
Estimated Fair Value, Level 2 [Member] | Marketable Equity Securities [Member] | Available-for-Sale Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 0 | |
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 | 2,037 | 74 |
Financial instruments held for investment activities | 7,211 | 3,114 |
Investment funds | 51,205 | 46,596 |
Total | 60,453 | 49,784 |
Securities sold but not yet purchased, at fair value | 0 | |
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 | 2,037 | 74 |
Securities sold but not yet purchased, at fair value | 0 | |
Estimated Fair Value, Level 3 [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 | 0 | |
Securities sold but not yet purchased, at fair value | 0 | |
Estimated Fair Value, Level 3 [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 | 0 | |
Estimated Fair Value, Level 3 [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 | 0 | |
Estimated Fair Value, Level 3 [Member] | Marketable Equity Securities [Member] | Available-for-Sale Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 0 | |
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 | 6,508 | 2,325 |
Trading Securities [Member] | Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 703 | 964 |
Trading Securities [Member] | 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 investment activities | 175 | |
Trading Securities [Member] | Estimated Fair Value, Level 1 [Member] | Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 0 | |
Trading Securities [Member] | Estimated Fair Value, Level 2 [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 | 0 | |
Trading Securities [Member] | Estimated Fair Value, Level 2 [Member] | Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 0 | |
Trading Securities [Member] | 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 investment activities | 6,508 | 2,150 |
Trading Securities [Member] | Estimated Fair Value, Level 3 [Member] | Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | $ 703 | $ 964 |
Financial Instruments and Lon28
Financial Instruments and Long-Term Investments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)SecurityShort_Sale | Jun. 30, 2015USD ($)InvestmentSecurityShort_Sale | Jun. 30, 2014USD ($)SecurityShort_Sale | Dec. 31, 2014USD ($)Investment | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of assets measured on recurring basis | $ 120,949,000 | $ 120,949,000 | $ 166,047,000 | ||
Investment funds | $ 92,781,000 | $ 92,781,000 | 104,888,000 | ||
Transfers made into or out of Level 3 | Security | 0 | ||||
Number of Transfer made out of Level 3 and into Level 1 | Security | 1 | 1 | 2 | ||
Number of Transfer made into Level 3 and out of Level 2 | Security | 1 | ||||
Financial instruments held for investment activities | $ 7,211,000 | $ 7,211,000 | 3,461,000 | ||
Number of short-sales | Short_Sale | 2 | ||||
Interest expense | 9,792,000 | $ 3,083,000 | $ 18,221,000 | $ 4,760,000 | |
Liquidation of investment funds | 3 years | ||||
Other-than-temporary impairment loss | 0 | 0 | $ 0 | 0 | |
Marketable securities with unrealized loss position | 0 | 0 | |||
Gain realized on marketable securities | 91,000 | ||||
Reclassified unrealized gain on sale of investment | 191,000 | ||||
Impairment losses | 0 | 0 | 0 | 0 | |
Other investments, at cost | 7,000,000 | 7,000,000 | 7,000,000 | ||
Other Investments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Other investments, at cost | 0 | 5,000,000 | $ 0 | 5,000,000 | |
Proceeds from sale of corporate debt investment | 1,428,000 | 1,428,000 | |||
Gross losses from sale of marketable securities | 1,176,000 | 1,176,000 | |||
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 | ||
Short Sales One [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of short-sales | Short_Sale | 1 | ||||
Face value amount | $ 75,000,000 | $ 75,000,000 | |||
Coupon rate of treasury securities | 7.25% | 4.625% | |||
Securities maturity date | 2016-05 | 2016-11 | 2015-11 | ||
Short Sales Two [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Coupon rate of treasury securities | 4.625% | ||||
Securities maturity date | 2016-11 | 2016-02 | |||
Short Sales [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Number of short-sales | Short_Sale | 2 | ||||
Face value amount | 200,000,000 | $ 100,000,000 | $ 200,000,000 | $ 100,000,000 | |
Coupon rate of treasury securities | 4.50% | ||||
Non Public Equity Securities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Financial instruments held for investment activities | 3,999,000 | 3,999,000 | |||
U.S. Treasury Securities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Interest expense | 3,712,000 | $ 3,083,000 | $ 6,909,000 | $ 4,760,000 | |
Hedge Funds [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Percentage of fair value redeemable on 60 days or less | 45.00% | ||||
Amount of fair value redeemable on 60 days or less | $ 41,576,000 | ||||
Percentage of fair value redeemable between 90 and 180 days | 34.00% | ||||
Amount of fair value redeemable between 90 and 180 days | $ 31,536,000 | ||||
Percentage of fair market value subject to lockup provisions | 9.00% | ||||
Amount of fair market value subject to lockup provisions | $ 8,726,000 | ||||
Percentage of fair market value expired during twenty fifteen | 30.00% | ||||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liabilities measured at fair value on a non-recurring basis | 0 | $ 0 | 0 | ||
Assets measured at fair value on a non-recurring basis | 0 | 0 | 0 | ||
Non Registered Investment [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Investment funds | 51,205,000 | $ 51,205,000 | $ 46,596,000 | ||
Number of non-registered investment | Investment | 11 | 10 | |||
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 | $ 60,453,000 | $ 60,453,000 | $ 49,784,000 | ||
Percentage of assets measured on recurring basis to assets | 4.80% | 4.80% | 4.80% | ||
Investment funds | $ 51,205,000 | $ 51,205,000 | $ 46,596,000 | ||
Financial instruments held for investment activities | $ 7,211,000 | $ 7,211,000 | $ 3,114,000 |
Financial Instruments and Lon29
Financial Instruments and Long-Term Investments - Valuation Technique and Unobservable Inputs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Assets Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 8,545 | $ 2,224 |
Assets Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 0.41 | $ 0 |
Assets Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | 17.50 | 34 |
Assets Approach [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 11.46 | $ 11.56 |
Black-Scholes [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 703 | $ 964 |
Volatility | 30.00% | 30.00% |
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 2.20% | 2.10% |
Volatility, Weighted Average | 30.00% | 30.00% |
Black-Scholes [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 2.20% | 2.10% |
Financial Instruments and Lon30
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 53,784 | $ 81,738 | $ 49,784 | $ 71,233 |
Total net gains (losses) (realized/unrealized) | ||||
Included in earnings | 815 | 2,369 | 896 | 3,858 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 25,677 | 48,424 | 39,847 | 83,309 |
Sales/Distributions | (19,823) | (29,722) | (33,290) | (49,375) |
Transfers out of Level 3 | (33) | 3,216 | (6,249) | |
Ending balance | 60,453 | 102,776 | 60,453 | 102,776 |
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 | 950 | 2,303 | 1,031 | 3,535 |
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 | 0 | |||
Purchases | 6,043 | |||
Sales/Distributions | (4,422) | |||
Transfers out of Level 3 | 0 | |||
Ending balance | 0 | 0 | ||
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 | 0 | |||
Trading Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 2,856 | 3,884 | 3,188 | 11,535 |
Total net gains (losses) (realized/unrealized) | ||||
Included in earnings | 538 | 168 | 235 | 88 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 25,677 | 34,937 | 39,097 | 48,779 |
Sales/Distributions | (19,823) | (29,470) | (33,243) | (44,667) |
Transfers out of Level 3 | (33) | (29) | (6,249) | |
Ending balance | 9,248 | 9,486 | 9,248 | 9,486 |
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 | 673 | 102 | 370 | (275) |
Investment Funds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 50,928 | 77,854 | 46,596 | 61,197 |
Total net gains (losses) (realized/unrealized) | ||||
Included in earnings | 277 | 2,201 | 661 | 3,892 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 13,487 | 750 | 28,487 |
Sales/Distributions | 0 | (252) | (47) | (286) |
Transfers out of Level 3 | 0 | 3,245 | 0 | |
Ending balance | 51,205 | 93,290 | 51,205 | 93,290 |
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 | $ 277 | $ 2,201 | $ 661 | $ 3,810 |
Financial Instruments and Lon31
Financial Instruments and Long-Term Investments - Gains (Losses) from Level 3 Financial Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Institutional Brokerage [Member] | ||||
Total gains and losses included in earnings for the period: | ||||
Included in earnings | $ 136 | $ 42 | $ 137 | $ 3 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | 271 | (24) | 272 | (238) |
Net Investment Income [Member] | ||||
Total gains and losses included in earnings for the period: | ||||
Included in earnings | 679 | 2,327 | 759 | 3,855 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | $ 679 | $ 2,015 | $ 759 | $ 3,461 |
Financial Instruments and Lon32
Financial Instruments and Long-Term Investments - Designated as Trading (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract] | ||||
Net gains recognized on trading securities | $ 3,717 | $ 5,665 | $ 6,408 | $ 8,050 |
Less: Net gains recognized on trading securities sold during the period | 0 | (804) | (24) | (931) |
Unrealized gains recognized on trading securities still held at the reporting date | $ 3,717 | $ 4,861 | $ 6,384 | $ 7,119 |
Financial Instruments and Lon33
Financial Instruments and Long-Term Investments - Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 92,781 | $ 104,888 |
Unfunded Commitment | 1,745 | 2,586 |
Hedge Funds, Fixed Income/Credit-Related [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 49,003 | 57,532 |
Unfunded Commitment | 0 | 0 |
Hedge Funds, Multi-Strategy [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 32,835 | 37,890 |
Unfunded Commitment | 0 | 0 |
Private Equity Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 10,943 | 9,466 |
Unfunded Commitment | $ 1,745 | $ 2,586 |
Financial Instruments and Lon34
Financial Instruments and Long-Term Investments - Financial Instruments Held for Investment - Designated as Available-for-Sale (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Financial Instruments Held For Investment Designated As Available For Sale [Abstract] | |
Marketable equity securities, Cost Basis | $ 100 |
Marketable equity securities, Unrealized Gains | 72 |
Marketable equity securities, Unrealized Losses | 0 |
Marketable equity securities, Fair Value | $ 172 |
Financial Instruments and Lon35
Financial Instruments and Long-Term Investments - Changes in the Company's Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amortized Cost And Fair Value Debt Securities [Abstract] | ||||
Accumulated other comprehensive income, beginning balance | $ 0 | $ 53 | $ 44 | $ 34 |
Other comprehensive income before reclassifications | 0 | 5 | 0 | 24 |
Amounts reclassified from other comprehensive income | 0 | 0 | (44) | 0 |
Accumulated other comprehensive income, at period end | 0 | 58 | 0 | 58 |
Reclassifications from other comprehensive income: | ||||
Realized gains on sale of securities | $ 0 | $ 0 | $ 44 | $ 0 |
Financial Instruments and Lon36
Financial Instruments and Long-Term Investments - Other Investments, at Cost (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule Of Cost Method Investments [Line Items] | ||
Other investments, at cost | $ 7,000 | $ 7,000 |
Non Public Equity Securities [Member] | ||
Schedule Of Cost Method Investments [Line Items] | ||
Other investments, at cost | $ 7,000 | $ 7,000 |
Securities Lending - Additional
Securities Lending - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 27, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Securities Financing Transaction [Line Items] | ||||
Initial cash payment on securities lending business | $ 1,101 | $ 0 | ||
Amortization of intangible assets | $ 89 | $ 179 | ||
Customer Relationships [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Estimated useful life of intangible assets | 7 years | |||
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 | Aug. 4, 2014 | |||
Estimated additional payment on securities lending business | $ 2,969 | $ 2,969 | ||
Purchase price allocated to goodwill | 2,570 | |||
Lazard Capital Markets LLC [Member] | Customer Relationships [Member] | ||||
Securities Financing Transaction [Line Items] | ||||
Purchase price allocated to intangible assets | $ 2,500 |
Securities Lending - Gross and
Securities Lending - Gross and Net Securities Borrowing and Lending Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Brokers And Dealers [Abstract] | ||
Gross amounts recognized | $ 683,269 | $ 594,674 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 683,269 | 594,674 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 683,269 | 594,674 |
Net amounts | 0 | 0 |
Gross amounts recognized | 685,266 | 595,717 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 685,266 | 595,717 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 685,266 | 595,717 |
Net amounts | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (benefit) expense | $ 1,499 | $ 1,999 | $ 178 | $ 5,404 | |
Effective tax rates | 34.10% | 22.30% | 32.10% | 30.00% | |
Deferred tax assets | $ 32,183 | ||||
Valuation allowance | $ 3,535 |
Regulatory Capital Requiremen40
Regulatory Capital Requirements - Additional Information (Detail) | Jun. 30, 2015USD ($) |
Brokers And Dealers [Abstract] | |
Net capital | $ 52,504,000 |
Net capital, excess of minimum required capital | 49,826,000 |
Minimum net capital required | $ 2,678,000 |
Income Per Share - Computations
Income Per Share - Computations of Basic and Diluted (Loss) Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted average shares outstanding, Basic: | ||||
Common stock, Basic | 8,084 | 10,795 | 8,453 | 10,927 |
Stock options, unvested restricted stock and RSUs, Basic | 0 | 0 | 0 | 0 |
Weighted average common and common equivalent shares outstanding, Basic | 8,084 | 10,795 | 8,453 | 10,927 |
Net income applicable to common stock, Basic | $ 2,899 | $ 6,976 | $ 377 | $ 12,586 |
Net income per common share, Basic | $ 0.36 | $ 0.65 | $ 0.04 | $ 1.15 |
Weighted average shares outstanding, Diluted: | ||||
Common stock, Diluted | 8,084 | 10,795 | 8,453 | 10,927 |
Stock options, unvested restricted stock and RSUs, Diluted | 1,075 | 1,170 | 1,181 | 1,123 |
Weighted average common and common equivalent shares outstanding, Diluted | 9,159 | 11,965 | 9,634 | 12,050 |
Net income applicable to common stock, Diluted | $ 2,899 | $ 6,976 | $ 377 | $ 12,586 |
Net income per common share, Diluted | $ 0.32 | $ 0.58 | $ 0.04 | $ 1.04 |
Income Per Share - Number of An
Income Per Share - Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 1,793 | 1,817 | 1,687 | 1,863 |
Stock Options-Employees and Directors [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 680 | 728 | 620 | 730 |
Stock Options-Non-Employee [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 32 | 27 | 32 | 27 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 11 | 6 | 11 | 6 |
RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 1,070 | 1,056 | 1,024 | 1,100 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Repurchases of common stock | $ 28,936 | $ 17,329 | ||||||
Number of shares authorized to repurchase | 615,132 | 615,132 | ||||||
Number of shares authorized to be repurchased | 750,000 | |||||||
Dividends payable, date declared | Jun. 16, 2015 | |||||||
Cash dividends declared per common share | $ 0.20 | $ 0 | $ 0.20 | $ 0 | ||||
Dividends payment date | Aug. 28, 2015 | |||||||
Cash dividends payable | $ 430 | $ 430 | ||||||
Discounted purchase price of market value for Employee Stock Purchase Plan | 85.00% | |||||||
Compensation expense | 55 | $ 39 | $ 139 | $ 188 | ||||
Exercised | 0 | 0 | ||||||
Forfeited | 0 | 0 | ||||||
Percentage of compensation expense | 100.00% | |||||||
Stock compensation | $ 3,353 | $ 4,546 | ||||||
Aggregate fair value upon grant date | $ 630 | $ 7,317 | $ 630 | |||||
Performance Period Commencing January 1, 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition one of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition one of performance goal | 6.00% | |||||||
Performance period under performance goal | 3 years | |||||||
Percentage of rate used under condition two of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition two of performance goal | 9.00% | |||||||
Percentage of compensation expense | 50.00% | 50.00% | ||||||
Performance Period Commencing January 1, 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition one of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition one of performance goal | 6.00% | |||||||
Performance period under performance goal | 3 years | |||||||
Percentage of rate used under condition two of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition two of performance goal | 9.00% | |||||||
Stock compensation | $ 1,042 | $ 1,042 | ||||||
Performance Period Commencing April 1, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition one of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition one of performance goal | 7.00% | |||||||
Performance period under performance goal | 3 years | |||||||
Percentage of rate used under condition two of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition two of performance goal | 4.00% | |||||||
Percentage of compensation expense | 100.00% | |||||||
Stock Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock-based awards available for grant under the long-term incentive plan | 7,217,496 | 7,217,496 | ||||||
Period for long-term incentive plan | 10 years | |||||||
Termination date | Oct. 22, 2023 | |||||||
Stock Compensation Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Period for long-term incentive plan | 10 years | |||||||
RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares, Granted | 26,549 | 294,843 | ||||||
Stock compensation | $ 916 | $ 2,235 | $ 3,056 | $ 4,308 | ||||
RSUs [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares, Granted | 230,258 | 277,405 | 375,000 | |||||
RSUs [Member] | Maximum [Member] | Performance Period Commencing January 1, 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 9.00% | |||||||
RSUs [Member] | Maximum [Member] | Performance Period Commencing January 1, 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 9.00% | |||||||
RSUs [Member] | Maximum [Member] | Performance Period Commencing April 1, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 100.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 7.00% | |||||||
RSUs [Member] | Minimum [Member] | Performance Period Commencing January 1, 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 6.00% | |||||||
RSUs [Member] | Minimum [Member] | Performance Period Commencing January 1, 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 6.00% | |||||||
RSUs [Member] | Minimum [Member] | Performance Period Commencing April 1, 2013 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition three of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 4.00% | |||||||
Open Market Transaction [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock repurchased | 134,868 | 400,195 | 1,090,664 | 662,012 | ||||
Weighted average prices | $ 21.40 | $ 26.19 | $ 24.42 | $ 26.18 | ||||
Repurchases of common stock | $ 2,887 | $ 10,480 | $ 26,636 | $ 17,329 | ||||
Repurchases From Recipients Of Stock Based Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock repurchased | 9,000 | 99,000 | 71,000 | |||||
Weighted average prices | $ 22.22 | $ 23.23 | $ 25.68 | |||||
Repurchases of common stock | $ 200 | $ 2,300 | $ 1,823 |
Shareholders' Equity - Compensa
Shareholders' Equity - Compensation Expense Related to Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 3,353 | $ 4,546 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0 | $ 27 | 7 | (85) |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 72 | 72 | 152 | 135 |
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 916 | $ 2,235 | $ 3,056 | $ 4,308 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuance Activity Related to Grants of Awards (Detail) - Jun. 30, 2015 - $ / shares | Total | Total |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based award issuances | 0 | 0 |
Grant date fair value per share | $ 0 | $ 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based award issuances | 17,184 | 17,184 |
Grant date fair value per share | $ 22.55 | $ 22.55 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based award issuances | 48,625 | 359,342 |
Grant date fair value per share | $ 22.01 | $ 23.47 |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Compensation Related to Awards (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation | $ 13,269 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation | $ 0 |
Unvested awards | 0 |
Weighted average vesting period | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation | $ 372 |
Unvested awards | 17,184 |
Weighted average vesting period | 11 months 16 days |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation | $ 5,441 |
Unvested awards | 1,145,331 |
Weighted average vesting period | 9 months 11 days |
Performance Condition RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation | $ 3,907 |
Unvested awards | 490,129 |
Weighted average vesting period | 1 year 5 months 9 days |
Shareholders' Equity - Unreco47
Shareholders' Equity - Unrecognized Compensation Related to Awards (Parenthetical) (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total unvested awards include performance conditions | 882,663 |
Unrecognized compensation | $ 13,269 |
Percentage of compensation expense | 100.00% |
Segment Information - Summary o
Segment Information - Summary of Financial Information of Company's Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Revenues, net of interest expense: | |||||
Investment banking | $ 29,728 | $ 35,784 | $ 42,403 | $ 72,423 | |
Institutional brokerage | 12,441 | 14,643 | 24,684 | 29,734 | |
Net investment income | 3,679 | 9,091 | 7,029 | 12,925 | |
Interest | 8,008 | 270 | 14,993 | 554 | |
Dividends and other | 192 | 393 | 463 | 580 | |
Total revenues | 54,048 | 60,181 | 89,572 | 116,216 | |
Interest expense | 9,792 | 3,083 | 18,221 | 4,760 | |
Revenues, net of interest expense | 44,256 | 57,098 | 71,351 | 111,456 | |
Operating expenses: | |||||
Variable | 17,094 | 22,279 | 22,508 | 42,042 | |
Fixed | 22,764 | 25,844 | 48,288 | 51,424 | |
Total non-interest expenses | 39,858 | 48,123 | 70,796 | 93,466 | |
Income before income taxes | 4,398 | 8,975 | 555 | 17,990 | |
Compensation and benefits: | |||||
Variable | 11,100 | 17,153 | 13,609 | 33,473 | |
Fixed | 13,175 | 14,917 | 28,621 | 29,897 | |
Total | 24,275 | 32,070 | 42,230 | 63,370 | |
Total assets | 1,268,969 | 746,121 | 1,268,969 | 746,121 | $ 1,035,097 |
Total net assets | 234,865 | 297,937 | 234,865 | 297,937 | |
Capital Markets [Member] | |||||
Revenues, net of interest expense: | |||||
Investment banking | 29,728 | 35,784 | 42,403 | 72,423 | |
Institutional brokerage | 12,441 | 14,643 | 24,684 | 29,734 | |
Net investment income | 0 | 0 | 0 | 0 | |
Interest | 8,008 | 245 | 14,991 | 432 | |
Dividends and other | 64 | 240 | 211 | 301 | |
Total revenues | 50,241 | 50,912 | 82,289 | 102,890 | |
Interest expense | 6,080 | 0 | 11,312 | 0 | |
Revenues, net of interest expense | 44,161 | 50,912 | 70,977 | 102,890 | |
Operating expenses: | |||||
Variable | 17,112 | 21,140 | 22,503 | 40,684 | |
Fixed | 22,277 | 25,193 | 47,068 | 50,001 | |
Total non-interest expenses | 39,389 | 46,333 | 69,571 | 90,685 | |
Income before income taxes | 4,772 | 4,579 | 1,406 | 12,205 | |
Compensation and benefits: | |||||
Variable | 11,120 | 16,018 | 13,609 | 32,121 | |
Fixed | 12,835 | 14,552 | 27,893 | 29,188 | |
Total | 23,955 | 30,570 | 41,502 | 61,309 | |
Total assets | 860,722 | 349,082 | 860,722 | 349,082 | |
Total net assets | 168,299 | 193,877 | 168,299 | 193,877 | |
Principal Investing [Member] | |||||
Revenues, net of interest expense: | |||||
Investment banking | 0 | 0 | 0 | 0 | |
Institutional brokerage | 0 | 0 | 0 | 0 | |
Net investment income | 3,679 | 9,091 | 7,029 | 12,925 | |
Interest | 0 | 25 | 2 | 122 | |
Dividends and other | 128 | 153 | 252 | 279 | |
Total revenues | 3,807 | 9,269 | 7,283 | 13,326 | |
Interest expense | 3,712 | 3,083 | 6,909 | 4,760 | |
Revenues, net of interest expense | 95 | 6,186 | 374 | 8,566 | |
Operating expenses: | |||||
Variable | (18) | 1,139 | 5 | 1,358 | |
Fixed | 487 | 651 | 1,220 | 1,423 | |
Total non-interest expenses | 469 | 1,790 | 1,225 | 2,781 | |
Income before income taxes | (374) | 4,396 | (851) | 5,785 | |
Compensation and benefits: | |||||
Variable | (20) | 1,135 | 0 | 1,352 | |
Fixed | 340 | 365 | 728 | 709 | |
Total | 320 | 1,500 | 728 | 2,061 | |
Total assets | 408,247 | 397,039 | 408,247 | 397,039 | $ 204,159 |
Total net assets | $ 66,566 | $ 104,060 | $ 66,566 | $ 104,060 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2015USD ($)Short_Sale | Jun. 30, 2014USD ($)Short_Sale | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Increase/Decrease in total assets of segment | $ 1,268,969,000 | $ 746,121,000 | $ 1,035,097,000 |
Number of short-sales | Short_Sale | 2 | ||
Short Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Face value amount | $ 200,000,000 | $ 100,000,000 | |
Number of short-sales | Short_Sale | 2 | ||
Coupon rate of treasury securities | 4.50% | ||
Principal Investing [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase/Decrease in total assets of segment | $ 408,247,000 | $ 397,039,000 | $ 204,159,000 |
Number of short-sales | Short_Sale | 2 | ||
Coupon rate of treasury securities | 4.625% | ||
Principal Investing [Member] | Short Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Face value amount | $ 200,000,000 |