Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FBRC | ||
Entity Registrant Name | FBR & CO. | ||
Entity Central Index Key | 1,371,446 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 7,384,874 | ||
Entity Public Float | $ 161 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 70,067 | $ 108,962 |
Receivables: | ||
Securities borrowed | 685,037 | 594,674 |
Due from brokers, dealers and clearing organizations | 5,513 | 94,489 |
Customers | 1,429 | 3,349 |
Other | 5,895 | 5,227 |
Financial instruments owned, at fair value | 94,923 | 166,047 |
Other investments, at cost | 6,539 | 7,000 |
Goodwill and intangible assets | 6,273 | 4,921 |
Furniture, equipment, software, and leasehold improvements, net of accumulated depreciation and amortization | 15,071 | 15,388 |
Deferred tax assets, net of valuation allowance | 37,497 | 28,648 |
Prepaid expenses and other assets | 5,172 | 6,392 |
Total assets | 933,416 | 1,035,097 |
Liabilities | ||
Securities loaned | 687,443 | 595,717 |
Financial instruments sold, not yet purchased, at fair value | 1,934 | 121,310 |
Accrued compensation and benefits | 13,325 | 34,571 |
Accounts payable, accrued expenses and other liabilities | 19,947 | 23,093 |
Total liabilities | $ 722,649 | $ 774,691 |
Commitments and Contingencies (Note 10) | ||
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, 6,795,342 and 8,388,697 shares issued and outstanding, respectively | 7 | 8 |
Additional paid-in capital | 259,011 | 302,720 |
Restricted stock units | 35,929 | 34,353 |
Accumulated other comprehensive income, net of taxes | 0 | 44 |
Accumulated deficit | (84,180) | (76,719) |
Total shareholders’ equity | 210,767 | 260,406 |
Total liabilities and shareholders’ equity | $ 933,416 | $ 1,035,097 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 6,795,342 | 8,388,697 |
Common stock, shares outstanding | 6,795,342 | 8,388,697 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment banking: | |||
Capital raising | $ 61,508 | $ 103,902 | $ 186,516 |
Advisory | 9,583 | 11,353 | 9,697 |
Institutional brokerage | 45,442 | 56,182 | 53,738 |
Net investment income | 5,433 | 17,774 | 6,920 |
Interest | 31,774 | 13,067 | 1,790 |
Dividends and other | 1,692 | 1,030 | 1,160 |
Total revenues | 155,432 | 203,308 | 259,821 |
Interest expense | 35,037 | 21,183 | 0 |
Revenues, net of interest expense | 120,395 | 182,125 | 259,821 |
Non-interest expenses: | |||
Compensation and benefits | 77,463 | 103,811 | 144,720 |
Professional services | 13,287 | 13,259 | 12,326 |
Occupancy and equipment | 12,680 | 13,480 | 12,271 |
Communications | 10,865 | 11,514 | 11,101 |
Business development | 9,819 | 11,689 | 9,602 |
Clearing and brokerage fees | 5,328 | 4,757 | 4,922 |
Other operating expenses | 6,711 | 6,255 | 7,609 |
Total non-interest expenses | 136,153 | 164,765 | 202,551 |
(Loss) income from continuing operations before income taxes | (15,758) | 17,360 | 57,270 |
Income tax (benefit) expense | (8,297) | 341 | (27,483) |
(Loss) income from continuing operations, net of taxes | (7,461) | 17,019 | 84,753 |
Income from discontinued operations, net of taxes | 0 | 0 | 8,159 |
Net (loss) income | $ (7,461) | $ 17,019 | $ 92,912 |
Basic (loss) income per share: | |||
(Loss) income from continuing operations, net of taxes | $ (0.92) | $ 1.66 | $ 7.09 |
(Loss) income from discontinued operations, net of taxes | 0 | 0 | 0.68 |
Basic (loss) income per share | (0.92) | 1.66 | 7.77 |
Diluted (loss) income per share: | |||
(Loss) income from continuing operations, net of taxes | (0.92) | 1.48 | 6.54 |
(Loss) income from discontinued operations, net of taxes | 0 | 0 | 0.63 |
Diluted (loss) income per share | $ (0.92) | $ 1.48 | $ 7.17 |
Basic weighted average shares outstanding (in thousands) | 8,069 | 10,283 | 11,963 |
Diluted weighted average shares outstanding (in thousands) | 8,069 | 11,465 | 12,960 |
Cash dividends declared per common share | $ 0.40 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (7,461) | $ 17,019 | $ 92,912 |
Other comprehensive income, net of tax: | |||
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes of $28, $7, and $22, respectively | (44) | 10 | 1,128 |
Comprehensive (loss) income | $ (7,505) | $ 17,029 | $ 94,040 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Change in unrealized gain (loss) on available-for-sale investment securities, taxes | $ 28 | $ 7 | $ 22 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Employee Stock Loan Receivable [Member] | Restricted Stock Units [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2012 | $ 239,864 | $ 12 | $ 402,668 | $ (307) | $ 25,235 | $ (1,094) | $ (186,650) |
Balance, Shares at Dec. 31, 2012 | 12,224,000 | ||||||
Net (loss) income | 92,912 | $ 0 | 0 | 0 | 0 | 0 | 92,912 |
Issuance of common stock, net of forfeitures | 5,317 | $ 1 | 18,697 | 307 | (13,688) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 957,000 | ||||||
Repurchase of common stock | $ (55,541) | $ (2) | (55,539) | 0 | 0 | 0 | 0 |
Repurchase of common stock, shares | (2,377,583) | (2,378,000) | |||||
Repurchase of common stock for employee tax withholding | $ (3,817) | $ 0 | (3,817) | 0 | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (258,000) | ||||||
Stock compensation expense for options granted to purchase common stock | 974 | $ 0 | 974 | 0 | 0 | 0 | 0 |
Issuance of restricted stock units | 9,940 | 0 | 0 | 0 | 9,940 | 0 | 0 |
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes | 1,128 | 0 | 0 | 0 | 0 | 1,128 | 0 |
Balance at Dec. 31, 2013 | 290,777 | $ 11 | 362,983 | 0 | 21,487 | 34 | (93,738) |
Balance, Shares at Dec. 31, 2013 | 10,545,000 | ||||||
Net (loss) income | 17,019 | $ 0 | 0 | 0 | 0 | 0 | 17,019 |
Issuance of common stock, net of forfeitures | 2,347 | $ 0 | 5,447 | 0 | (3,100) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 295,000 | ||||||
Repurchase of common stock | $ (64,094) | $ (3) | (64,091) | 0 | 0 | 0 | 0 |
Repurchase of common stock, shares | (2,380,504) | (2,380,000) | |||||
Repurchase of common stock for employee tax withholding | $ (1,823) | $ 0 | (1,823) | 0 | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (71,000) | ||||||
Stock compensation expense for options granted to purchase common stock | 204 | $ 0 | 204 | 0 | 0 | 0 | 0 |
Issuance of restricted stock units | 15,966 | 0 | 0 | 0 | 15,966 | 0 | 0 |
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes | 10 | 0 | 0 | 0 | 0 | 10 | 0 |
Balance at Dec. 31, 2014 | 260,406 | $ 8 | 302,720 | 0 | 34,353 | 44 | (76,719) |
Balance, Shares at Dec. 31, 2014 | 10,545,000 | ||||||
Net (loss) income | (7,461) | $ 0 | 0 | 0 | 0 | 0 | (7,461) |
Common stock dividends | (3,710) | 0 | (3,710) | 0 | 0 | 0 | 0 |
Issuance of common stock, net of forfeitures | 2,468 | $ 1 | 8,147 | 0 | (5,680) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 494,000 | ||||||
Repurchase of common stock | $ (45,219) | $ (2) | (45,217) | 0 | 0 | 0 | 0 |
Repurchase of common stock, shares | (1,949,517) | (1,950,000) | |||||
Repurchase of common stock for employee tax withholding | $ (3,113) | $ 0 | (3,113) | 0 | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (138,000) | ||||||
Stock compensation expense for options granted to purchase common stock | 184 | $ 0 | 184 | 0 | 0 | 0 | 0 |
Issuance of restricted stock units | 7,256 | 0 | 0 | 0 | 7,256 | 0 | 0 |
Change in unrealized gain (loss) on available-for-sale investment securities, net of taxes | (44) | 0 | 0 | 0 | 0 | (44) | 0 |
Balance at Dec. 31, 2015 | $ 210,767 | $ 7 | $ 259,011 | $ 0 | $ 35,929 | $ 0 | $ (84,180) |
Balance, Shares at Dec. 31, 2015 | 6,795,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities | |||
Net (loss) income | $ (7,461) | $ 17,019 | $ 92,912 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 3,312 | 1,990 | 1,290 |
Deferred income taxes | (8,820) | 2,239 | (30,915) |
Net investment income from investments | (5,433) | (17,774) | (6,920) |
Gain on the sale of assets | 0 | 0 | (8,944) |
Stock compensation | 7,192 | 9,397 | 8,457 |
Other | 46 | 192 | 166 |
Receivables: | |||
Securities borrowed | (90,363) | (594,674) | 0 |
Brokers, dealers and clearing organizations | 6,940 | (5,405) | (279) |
Customers | 2,209 | 780 | (2,003) |
Affiliates | (3,341) | (4,022) | (71) |
Interest, dividends and other | 2,810 | (468) | 681 |
Trading securities | 43,662 | 499 | 16,029 |
Prepaid expenses and other assets | 1,505 | (483) | 979 |
Changes in operating liabilities: | |||
Securities loaned | 91,726 | 595,717 | 0 |
Trading account financial instruments sold, not yet purchased | (38,452) | (2,863) | (14,688) |
Accounts payable, accrued expenses and other liabilities | (4,008) | 4,235 | (3,979) |
Accrued compensation and benefits | (21,141) | (16,614) | 41,519 |
Brokers, dealers and clearing organizations | 0 | (8,702) | 5,003 |
Net cash (used in) provided by operating activities | (19,617) | (18,937) | 99,237 |
Cash flows from investing activities | |||
Purchases of investment securities and other investments | (17,563) | (74,382) | (68,864) |
Proceeds from sales of and distributions from investments | 40,950 | 60,681 | 38,190 |
Settlement of financial instruments sold, not yet purchased | (288,860) | (208,848) | 0 |
Financial instruments sold, not yet purchased | 217,940 | 301,230 | 0 |
Due from brokers, dealers and clearing organizations | 84,134 | (84,134) | 0 |
Proceeds from sale of assets | 0 | 0 | 19,294 |
Purchase of broker-dealer, net of cash acquired | (2,275) | 0 | 0 |
Purchase of securities lending business | (2,166) | (1,000) | 0 |
Purchases of furniture, equipment, software, and leasehold improvements | (2,261) | (9,509) | (882) |
Net cash provided by (used in) investing activities | 29,899 | (15,962) | (12,262) |
Cash flows from financing activities | |||
Repurchases of common stock | (48,332) | (65,917) | (59,358) |
Proceeds from sales of common stock and repayments of employee stock purchase plan | 2,089 | 1,805 | 5,431 |
Dividends paid | (2,934) | 0 | 0 |
Net cash used in financing activities | (49,177) | (64,112) | (53,927) |
Cash and cash equivalents | |||
Net (decrease) increase in cash and cash equivalents | (38,895) | (99,011) | 33,048 |
Cash and cash equivalents, beginning of period | 108,962 | 207,973 | 174,925 |
Cash and cash equivalents, end of period | 70,067 | 108,962 | 207,973 |
Supplemental cash flows disclosures | |||
Income tax payments | 19 | 3,339 | 3,372 |
Interest payments | 35,745 | 21,775 | 0 |
Non-cash investing and financing activities | |||
Leasehold improvement incentives | 68 | 4,434 | 0 |
Acquisition of securities lending business - contingent consideration | (637) | 4,070 | 0 |
Dividends payable | $ 776 | $ 0 | $ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1. Organization and Nature of Operations: Organization FBR & Co., (the “Company”), a Virginia corporation, is a holding company of which the principal operating companies are FBR Capital Markets & Co. (“FBRCM”), FBR Capital Markets LT, Inc. (“FBRLT”), MLV & Co. LLC (“MLV”), and FBR Capital Markets PT, Inc. (“FBRPT”). FBRCM is an SEC-registered broker-dealer and member of the Financial Industry Regulatory Authority Inc. (“FINRA”). FBRCM acts as an introducing broker and forwards all transactions to clearing brokers on a fully disclosed basis. FBRCM does not hold funds or securities for, nor owe funds or securities to, customers. In addition, FBRCM provides capital raising and advisory services. The Company conducts its syndicated loan trading activity at FBRLT. On September 1, 2015, the Company completed the purchase of MLV, an investment banking and brokerage firm focused on equity capital markets and a leading provider of at-the-market (“ATM”) offerings. Similar to FBRCM, MLV is an SEC-registered broker-dealer and member of FINRA that acts as an introducing broker and forwards all transactions to a clearing broker on a fully disclosed basis. See Note 5 Acquisitions FBRPT holds and manages the Company’s investment positions which include investments in non-registered investment funds that are managed by third parties, merchant banking, marketable equity securities, non-public equity securities, corporate debt investments and U.S. Treasury securities. In October 2013, the Company received the final payment related to its 2012 agreement to sell the assets related to the management of the FBR Funds, a family of mutual funds. The FBR Funds were managed by a subsidiary of the Company, FBR Fund Advisers, Inc. See Note 16 Discontinued Operations Nature of Operations The Company’s principal business activities, including capital raising, financial advisory, institutional sales and trading, differentiated securities research and securities lending are all linked to the capital markets. The Company’s investment banking and institutional brokerage business activities are primarily focused on small- and mid-cap stocks in the following industry sectors: consumer, energy and natural resources, financial institutions, healthcare, industrials, insurance, real estate, and technology, media and telecommunications. Additionally, beginning in August 2014 the Company provides securities lending services to a broad group of banks and broker-dealers. These services include facilitating the sourcing, borrowing and lending of equity and fixed income securities (see Note 4 Securities Lending The Company’s revenues from investment banking are subject to substantial fluctuations due to a variety of factors that cannot be predicted with great certainty, including the overall condition of the economy and the securities markets as a whole and of the sectors on which the Company focuses. Fluctuations also occur due to the level of market activity, which, among other things, affects the flow of investment dollars and the size, number and timing of transactions. As a result, net income (loss) and revenues may vary significantly from quarter-to-quarter and year-to-year. Concentration of Revenue A substantial portion of the Company’s revenues may be derived from investment banking and these revenues may be concentrated in a small number of transactions. For the years ended December 31, 2015, 2014 and 2013 investment banking revenue accounted for 59%, 63%, and 76%, respectively, of the Company’s revenues, net of interest expense. In addition, 56% of 2015 investment banking revenues were derived from four transactions, 70% of 2014 investment banking revenues were derived from six transactions, and 68% of 2013 investment banking revenues were derived from six transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies: Principles of Consolidated Financial Statements and Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior period amounts in order to conform with the current period presentation. On February 28, 2013, the Company affected a one-for-four reverse stock split of the Company’s issued and outstanding common stock. While this reverse stock split reduced the number of issued and outstanding common shares, it had no effect on the Company’s total shareholders’ equity. Pursuant to the requirements of the FBR & Co. Long Term Incentive Plan and the provisions of the reverse stock split, all outstanding stock awards under the plan have been adjusted. These adjustments reduced the number of outstanding awards and, in addition for options to purchase common stock, the applicable exercise price, but had no effect on the unrecognized compensation expense applicable to these awards. Use of Estimates The preparation of the Company’s financial statements, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), 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 these estimates. Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less at the date of acquisition that are not held for sale in the ordinary course of business. As of December 31, 2015 and 2014, approximately 77% and 92%, respectively, of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities directly or indirectly guaranteed by the U.S. government. The Company holds cash in financial institutions in excess of FDIC insured limits. The Company periodically reviews the financial condition of the financial institutions and assesses the credit risk of such investments. Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. As of December 31, 2015 and 2014, and during the years then ended, all collateral received or paid was in the form of cash. A substantial portion of the Company’s interest revenue and interest expense results from these activities. The Company accounts for securities lending transactions in accordance with Accounting Standards Update (“ASU”) 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” requiring companies to report disclosures of offsetting assets and liabilities. The Company does not net securities borrowed and securities loaned and these items are presented on a gross basis in the consolidated balance sheets. Due from/to Brokers, Dealers, and Clearing Organizations The Company clears all of its proprietary and customer transactions through other broker-dealers on a fully disclosed basis. The amount receivable from or payable to the clearing brokers represents the net of proceeds from unsettled securities sold, the Company’s clearing deposit and amounts receivable for commissions less amounts payable for unsettled securities purchased by the Company and amounts payable for clearing costs and other settlement charges. This amount also includes the cash collateral received for securities loaned less cash collateral for securities borrowed. Any amounts payable would be fully collateralized by all of the securities owned by the Company and held on deposit at the clearing broker. In addition, these balances may include unsettled syndicated loan trades. 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 an 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. 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. As a result of our adoption of Accounting Standards Update 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”) in 2015, these investment funds are no longer categorized within the fair value hierarchy. The estimated fair values of the Company’s financial instrument assets and liabilities which are not measured at fair value on the consolidated balance sheets are as follows: December 31, 2015 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 70,067 $ 70,067 $ — $ — $ 70,067 Due from broker, dealers and clearing organizations 5,513 — 5,513 — 5,513 Non-interest bearing receivables 7,324 — 7,324 — 7,324 Other investments, at cost (1) 5,000 — — 5,000 5,000 Financial Liabilities Accounts payable, accrued expenses and other liabilities (1) 18,680 — 18,680 — 18,680 (1) As of December 31, 2015, there were $1,539 of other investments, at cost and $1,267 of accounts payable, accrued expenses and other liabilities recorded at fair value on a non-recurring basis. December 31, 2014 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 108,962 $ 108,962 $ — $ — $ 108,962 Due from brokers, dealers and clearing organizations 94,489 — 94,489 — 94,489 Non-interest bearing receivables 8,576 — 8,576 — 8,576 Other investments, at cost 7,000 — — 7,395 7,395 Financial Liabilities Accounts payable, accrued expenses and other liabilities 23,093 — 23,093 — 23,093 The carrying amounts noted above for cash and cash equivalents, due from brokers, dealers and clearing organizations, non-interest bearing receivables, and accounts payable, accrued expenses and other liabilities approximate fair value due to the short term nature of these items and/or minimal credit risk. The fair value of other investments, at cost, which primarily include non-public equity securities, was determined based on the Company’s assessment of enterprise values as discussed above. Securities and Principal Investments Trading securities and investments owned by the Company’s broker-dealer subsidiaries and financial instruments sold, not yet purchased are recorded on the trade-date and carried at fair value. Realized and unrealized gains and losses from trading desk securities are reflected in institutional brokerage revenue in the consolidated statements of operations. Realized and unrealized gains and losses from investment positions are reflected in net investment income in the consolidated statements of operations. Marketable equity and debt securities held for investment purposes at non-broker-dealer subsidiaries are recorded on the trade date and designated as either available-for-sale or trading investments pursuant to ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”). These investments are carried at fair value with resulting unrealized gains and losses on available-for-sale securities reflected in accumulated other comprehensive income in the consolidated balance sheets and unrealized gains and losses on trading securities reflected in net investment income in the consolidated statements of operations. Investments in equity securities of non-public companies that are held in non-broker-dealer subsidiaries are carried at cost, unless an election is made pursuant to ASC 825, “Financial Instruments” (“ASC 825”), to account for the security at fair value. Such elections are made at the date of purchase based on the Company’s assessment of the prospective liquidity of the non-public equity security. The Company evaluates available-for-sale securities and investments in securities of non-public companies carried at cost for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The value of the Company’s investments in securities of non-public companies and marketable equity securities designated as available-for-sale can fluctuate significantly. Such values may be based on unobservable inputs, including significant assumptions of the Company and consideration of the liquidity and size of the Company’s position. In evaluating these investments for other-than-temporary impairment, consideration is given to (1) the length of time and the extent to which the fair value has been lower than carrying value, (2) the severity of the decline in fair value, (3) the financial condition and near-term prospects of the issuer, and (4) the Company’s intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. If it is determined that an investment impairment is other-than-temporary then the amount that the fair value is below its current basis is recorded as an impairment charge and recorded through earnings in net investment income in the consolidated statements of operations. For unrealized losses that are determined to be temporary, the Company continues to evaluate these at each reporting date. If the Company determines at a future date that an impairment of a marketable equity security is other-than-temporary, the applicable unrealized loss will be reclassified from accumulated other comprehensive income and recognized as an other-than-temporary impairment loss at the time the determination is made. Realized gains and losses on sales of equity and debt securities are determined using the specific identification method. For restricted shares, including private company shares, these investments by their nature have limited or no price transparency. Adjustments to carrying value may be based on third-party transactions evidencing a change in value and output from the Company’s valuation models and estimates of fair value. In reaching that determination, the Company may consider factors such as, but not limited to, the financial performance of the companies relative to projections, trends within sectors, underlying business models and expected exit timing and strategy. The Company’s investments in proprietary investment funds include non-registered investment companies. As of December 31, 2015 and 2014, these investments are comprised of non-registered investment companies where the underlying fund investments consist primarily of corporate and asset-backed fixed income securities. These funds record their investments in securities at fair value and report NAV to investors representing the fair value of the underlying investments held by the funds. The funds’ determination of these fair values is a matter of judgment. The Company reflects the increase/decrease in NAV (including realized and unrealized gains and losses) in net investment income in the consolidated statements of operations. The Company’s disposition of these investment funds may be subject to contractual restrictions. Goodwill and Intangible Assets The Company’s intangible assets consist of goodwill and intangible assets with finite useful lives. All of these intangible assets were recognized as a result of business combinations. Goodwill is not amortized but is tested annually for impairment (during the third quarter) or more frequently if an adverse event occurs that may indicate impairment. The values of the intangible assets with finite useful lives are amortized in proportion to their expected economic benefit over their estimated useful life or straight-line if the economic benefit cannot be reliably determined. These intangible assets are periodically tested for impairment by comparing expected future gross cash flows to the asset’s carrying amount. If the expected gross cash flows are less than the carrying amount, the asset is impaired and is written-down to its fair value. Furniture, Equipment, Software and Leasehold Improvements Furniture, equipment, software and leasehold improvements are stated at cost less accumulated depreciation and amortization. Furniture and equipment are depreciated using the straight-line method over their estimated useful lives of three to five years. Amortization of purchased software is recorded over the estimated useful lives of three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life or lease term. Leases The Company leases its corporate headquarters and other offices under non-cancelable leases. The terms of the Company’s lease agreements range up to 10 years and may contain renewal options, escalation clauses, rent-free periods and operating cost adjustments. For leases that contain escalation clauses or rent-free periods, the Company recognizes the related rent expense on a straight-line basis from the date the Company takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and amounts payable under the leases as part of accounts payable and accrued expenses and other liabilities. Lease incentives received upon entering into certain leases are recognized on a straight-line basis as a reduction of rent expense from the date the Company takes possession of the property or receives the incentive to the end of the initial lease term. The Company records the unamortized portion of lease incentives as part of accounts payable, accrued expenses and other liabilities. Investment Banking Revenues Capital raising revenues represent fees earned from private placement transactions and from public offerings of securities in which the Company acts as placement agent or underwriter. These revenues consist of placement fees, selling concessions, underwriting fees, management fees and reimbursed expenses. Advisory revenues represent fees earned from mergers and acquisitions, mutual conversions, financial restructuring and other advisory services provided to clients. Capital raising revenues are recorded as revenue at the time the underwriting or private placement is completed under the terms of each engagement. Advisory fees are recorded as revenue when the related service has been rendered and the client is contractually obligated to pay. Certain fees received in advance of services rendered are deferred and recognized as revenue over the service period. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded or cancelled, at which time such expenses are recognized. Institutional Brokerage Revenues Institutional brokerage revenues consist of commissions resulting from securities transactions executed as agent or principal and related net trading gains and losses. Revenues generated from securities transactions and related commission income and expense are recorded on the trade date. Institutional brokerage revenues also include direct payments received by the Company for equity research. Compensation and Benefits Compensation and benefits includes base salaries, incentive compensation, stock-based compensation, employee benefit costs, and employer taxes. Incentive compensation is a significant component of compensation expense and is accrued based on the Company’s performance and the contribution of key business units, and in certain limited cases, using pre-defined formulas. The Company’s compensation accruals are reviewed and evaluated on a quarterly basis. The Company recognizes stock-based compensation expense in the consolidated statements of operations based on the grant-date fair value of awards of equity instruments issued to employees. The grant-date fair value is based on the closing price of FBR & Co.’s common stock on the date of grant. The expense is recognized over the period during which employees are required to provide service. The expense is recorded net of an estimated forfeiture rate for awards on the date of grant. Income Taxes The Company files a consolidated U.S. federal income tax return. The Company is also subject to income tax in various states and municipalities in which it operates. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities represent the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates. The measurement of net deferred tax assets is adjusted by a valuation allowance if, based on our evaluation and our consideration of the criteria in ASC 740, “Income Taxes” (“ASC 740”), it is more likely than not that they will not be realized. Tax liabilities for uncertain tax positions are recorded in accordance with ASC 740. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of other operating expenses in the consolidated statements of operations. Other Comprehensive Income Comprehensive income includes net income as currently reported by the Company on the consolidated statements of operations adjusted for other comprehensive income. Other comprehensive income for the Company represents changes in unrealized gains and losses related to the Company’s investment securities accounted for as available-for-sale with changes in fair value recorded through shareholders’ equity. Income Per Share Basic earnings per common share is calculated by dividing net income (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 common share is calculated by adjusting the weighted average outstanding shares to include the dilutive effect of unvested RSUs and shares of restricted stock that are subject forfeiture and the conversion of all potentially dilutive options to purchase common stock. 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. 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. 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 with early adoption permitted. A retrospective transition approach is required. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented. The Company adopted ASU 2015-07 in the fourth quarter of 2015 with no material impact on its consolidated financial statements or disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The amendments in ASU 2016-01 address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017. Except for the early application guidance outlined in ASU 2016-01, early adoption is not permitted. The Company is evaluating the impact of the new guidance on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | Note 3. Financial Instruments: Fair Value Hierarchy The following tables set forth, by level within the fair value hierarchy, financial instruments, including long-term investments accounted for under ASC 820 as of December 31, 2015 and 2014, respectively. 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 December 31, 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 $ 13,221 $ 5,586 $ — $ 7,635 Convertible and fixed income debt instruments 815 — 815 — 14,036 5,586 815 7,635 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 13,849 5,415 — 8,434 Warrants 436 — — 436 14,285 5,415 — 8,870 Total 28,321 $ 11,001 $ 815 $ 16,505 Investment funds valued at net asset value (1) 66,602 Total financial instruments owned, at fair value $ 94,923 Financial instruments sold, not yet purchased, at fair value: Marketable and non-public equity securities $ 1,933 $ 1,933 $ — $ — Convertible and fixed income debt instruments 1 — 1 — Total $ 1,934 $ 1,933 $ 1 $ — (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. As of December 31, 2015, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $16,505 or 1.8% 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, 2015: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach—assets $ 16,069 Over-the-counter trading activity $0 - $14.10/share $11.13 Black-Scholes—assets $ 436 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 1.9% 1.9% For those non-public equity securities valued using a market approach, adverse industry market conditions or events experienced by the underlying entities could result in lower over-the-counter trading prices for the securities. Such lower trading prices would result in a decline in the estimated fair value of these assets. 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. 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 Total 61,159 $ 15,107 $ 42,864 $ 3,188 Investment funds valued at net asset value (1) 104,888 Total financial instruments owned, at fair value $ 166,047 Financial instruments sold, 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 $ — (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. As of December 31, 2014, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $3,188 or 0.3% 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—assets $ 2,224 Over-the-counter trading activity $ 0 - $34.00/share $11.56 Black-Scholes—assets $ 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. An increase in the trading prices of trading securities sold but not yet purchased would result in an increase in the estimated fair value of these liabilities. For warrants valued using Black-Scholes, adverse industry market conditions or events experienced by the issuer could result in a lower trading price for the underlying equity security and therefore a lower value of these warrants. A reduction in the estimated volatility would also result in a lower value of the warrants. The Company assessed the reasonableness of the fair values of the non-public equity securities noted above based on its consideration of available financial data related to these issuers as well as an assessment of the nature of any over-the-counter trading activity during the period. The Company assessed the reasonableness of the fair value of the non-exchange traded warrants valued using a Black-Scholes valuation based on its consideration of the fair values of comparable exchange-traded options. 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 years ended December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets: Year Ended December 31, Year Ended December 31, 2015 2014 Trading Securities Trading Securities Financial Instruments Beginning balance, January 1, $ 3,188 $ 11,535 $ (1,499 ) Total net losses (realized/unrealized) included in earnings (332 ) (254 ) (122 ) Purchases 75,173 124,223 6,043 Sales/distributions (61,495 ) (126,067 ) (4,422 ) Transfers out of Level 3 (29 ) (6,249 ) — Ending balance, December 31, $ 16,505 $ 3,188 $ — 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 $ (631 ) $ 266 $ — During the year ended December 31, 2015, there was 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. During the year ended 2014, two transfers were made out of Level 3 and into Level 1 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 and liabilities that are measured at fair value on a recurring basis, that are included in earnings for the years ended December 31, 2015, 2014 and 2013, are reported in the following line descriptions on the Company’s consolidated statements of operations: Year Ended December 31, 2015 2014 2013 Total gains and losses included in earnings for the period: Institutional brokerage $ 422 $ 38 $ 1,722 Net investment (loss) income (754 ) (415 ) 2,648 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage 123 (38 ) 438 Net investment (loss) income (754 ) 304 2,551 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 cost method investments, 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. 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 year ended December 31, 2015, except for changes in contingent consideration payable, discussed below, and the recognition of a $461 other-than-temporary impairment loss on a cost method investment, 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, 2015 the Company made payments of $2,166 related to its contingent consideration obligation. Additionally, as a result of changes in forecasted securities lending results, the Company reduced the carrying value of this liability by $637 during 2015 and as of December 31, 2015 the contingent consideration payable was valued at $1,267. This reduction in value is included in dividends and other income in the consolidated statements of operations. 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. During the year ended December 31, 2013, other than the recognition of an other-than-temporary impairment loss of $545 related to a marketable equity security, there were no assets 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 December 31, 2015, and during the years ended December 31, 2015 and 2014, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiaries that were classified as trading securities. In addition, during the years ended December 31, 2015 and 2014, the Company had short positions in U.S. Treasury securities held by other than its broker-dealer subsidiaries that were classified as trading securities. These investments are designated as trading based on the Company’s intent at the time of designation. In accordance with ASC 320, these securities are carried at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the consolidated statements of operations. In addition, pursuant to 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 subsidiaries as part of its trading portfolio at fair value with resulting realized and unrealized gains and losses reflected as net investment income in the consolidated statements of operations. During 2015, the Company elected to account for two non-public equity securities, purchased at a cost of $6,510, at fair value. During 2014, the Company elected to account for two non-public equity securities, purchased at a cost of $6,148, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: Year Ended December 31, 2015 2014 2013 Net (loss) gains recognized on trading securities $ (1,442 ) $ 3,630 $ 1,213 Less: Net loss (gains) recognized on trading securities sold during the period 933 (3,732 ) (261 ) Unrealized (losses) gains recognized on trading securities still held at the reporting date $ (509 ) $ (102 ) $ 952 As part of the Company’s investing activities, during 2015 the Company entered into two short sales, totaling $200,000 face value, of 4.625% U.S. Treasury securities maturing in November 2016. These two short sales were settled in the third quarter of 2015. During 2014, the Company entered into one short-sale of a $75,000 face value 7.25% U.S. Treasury security and two short-sales of $100,000 face value each, 4.50% U.S. Treasury securities with maturity dates of May 2016, November 2015 and February 2016, respectively. The Company closed the two $100,000 face value positions during the fourth quarter of 2014 and closed the $75,000 face value position in the fourth quarter of 2015. The $75,000 face value position was open at December 31, 2014 and is included in financial instruments sold, not yet purchased on the Company’s consolidated balance sheets. During the years ended December 31, 2015 and 2014, the Company recognized realized and unrealized gains of $9,954 and $10,451, respectively, related to these short sales. Proceeds from open short-sales, as well as related margin requirements, were held in a collateral account and were included in due from brokers, dealers and clearing organizations in the Company’s consolidated balance sheets. Such amounts were not available for withdrawal and were subject to closure of the open short positions. During the years ended December 31, 2015 and 2014, the Company incurred $11,160 and $11,678, respectively, of interest expense related to these transactions. Fair Value of the Investments Valued at NAV As of December 31, 2015 and 2014, the Company has $66,602 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 December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 38,972 $ — $ 57,532 $ — Multi-strategy 18,930 — 37,890 — Private equity funds 8,700 212 9,466 2,586 Total $ 66,602 $ 212 $ 104,888 $ 2,586 The investments in non-registered investment funds 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. 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 December 31, 2015, 54% of the fair value of the Company’s fund investments, or $31,452 of the hedge funds, was redeemable on either a monthly or quarterly basis with notice periods of 60 days or less, 46% of the fair value, or $26,450 of the hedge funds, was redeemable on a quarterly basis with notice periods of between 90 days and 180 days. As of December 31, 2015, the Company has initiated redemptions for approximately $28,000 of the fair value of the hedge funds. 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 December 31, 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 As of December 31, 2014, the Company had certain investments in marketable equity securities held by other than the Company’s broker-dealer subsidiary that were classified as available-for-sale securities. These investments were 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 were available to be sold should economic conditions warrant such a transaction. In accordance with ASC 320, these securities were carried at fair value with resulting unrealized gains and losses reflected as other comprehensive income or loss. Gross unrealized gains and losses on these securities as of December 31, 2014 were as follows: December 31, 2014 Unrealized Cost Basis Gains Losses Fair Value Marketable equity securities $ 100 $ 72 $ — $ 172 The following provides detail of the amounts included in accumulated other comprehensive income and reclassified to earnings during the specified periods: Year Ended December 31, 2015 2014 2013 Beginning balance $ 44 $ 34 $ (1,094 ) Net unrealized investment gains (losses) during the period: Unrealized holding gains (losses), net of taxes — 10 619 Reclassification adjustment for recognized losses included in net income, net of taxes (44 ) — 509 Ending balance $ — $ 44 $ 34 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 statements of operations. During the years ended December 31, 2015, 2014 and 2013, the Company recorded other-than-temporary impairment losses of $-0-, $-0- and $545, respectively, in the consolidated statements of operations relating to marketable equity securities. The Company did not hold any marketable equity securities that were in unrealized loss positions as of December 31, 2015 and 2014. During the year ended December 31, 2013, the Company recognized a $545 other-than-temporary impairment loss related to a company in the financial services industry. The Company recognized this impairment loss as a result of a change in its intent to hold this investment for a period of time sufficient for a forecasted recovery of its fair value. In this case the change in intent was a result of changes in market conditions during 2013 specific to this investment. The carrying value of this investment subsequent to the impairment was $4,257. During the year ended December 31, 2015, the Company received $191 from the sale of a marketable equity security designated as available-for-sale resulting in a gross gain of $91. There were no sales of marketable equity securities designated as available-for-sale during the year ended December 31, 2014. During the year ended December 31, 2013, the Company received $25,431 from sales of marketable equity securities designated as available-for-sale resulting in gross gains of $698 and gross losses of $32. Other Comprehensive Income The following tables set forth the changes in the Company’s accumulated other comprehensive income by component for the periods indicated. Year Ended December 31, 2015 2014 Accumulated other comprehensive income, Beginning balance $ 44 $ 34 Other comprehensive income before reclassifications — 10 Amounts reclassified from other comprehensive income (44 ) — Accumulated other comprehensive income, at period end $ — $ 44 Other Investments, at Cost Other investments consist of non-public equity securities of $6,539 and $7,000 as of December 31, 2015 and 2014, respectively. The Company evaluates its investments, carried at cost, for impairment as of each reporting date. This evaluation includes consideration of the operating performance of the respective underlying companies, any over-the-counter trading activity, their financial condition and their near-term and long-term prospects. Based on its evaluations of these investments, the Company recorded a $461 impairment loss during the year ended December 31, 2015. The Company recorded no impairment losses during the years ended December 31, 2014 and 2013. There were no sales of, or distributions from, non-public equity securities during 2015. During the year ended December 31, 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, and the Company received $5,000 reflecting the full repayment at its maturity of a corporate debt investment. In addition, during the year ended December 31, 2014, a non-public equity security carried at cost with a basis of $428 became publicly traded during the period. The Company designated this security as trading at the time it became publicly traded. There were no sales of, or distributions from, non-public equity securities during 2013. The Company received $317 from the maturity of a note receivable that was carried at cost during 2013. In addition, during 2013 a non-public equity security carried at cost with a basis of $2,390 became publicly traded. The Company designated this security as trading at the time it became publicly traded. |
Securities Lending
Securities Lending | 12 Months Ended |
Dec. 31, 2015 | |
Securities Lending [Abstract] | |
Securities Lending | Note 4. Securities Lending: Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. The following tables present the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of December 31, 2015 and 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 As of December 31, 2015 Securities borrowed $ 685,037 $ — $ 685,037 $ 685,037 $ — Securities loaned $ 687,443 $ — $ 687,443 $ 687,443 $ — As of December 31, 2014 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. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Note 5. Acquisitions: On September 1, 2015, the Company completed the purchase of MLV, an investment banking and brokerage firm focused on equity capital markets and a leading provider of ATM offerings. In addition, on August 4, 2014, the Company completed its purchase of a securities lending business from Lazard Capital Markets LLC (“LCM”). The Company accounted for these acquisitions in accordance with ASC 805, “Business Combinations” (“ASC 805”), using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. The Company’s estimates of fair value included in the consolidated financial statements, in conformity with ASC 820, represent the Company’s best estimates and valuations. These estimates and underlying assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in its valuations will be realized, and actual results could vary materially. MLV As a result of this acquisition, the Company added approximately 20 client-facing employees, primarily in investment banking and research. Pursuant to the terms of the transaction agreement related to this acquisition, the Company made a cash payment of $3,250 to acquire 100% of the stock of MLV. The Company believes that this acquisition will be accretive to its overall revenue per employee and operating margin. As a result of this purchase, the Company recorded goodwill of $1,259 and finite-lived intangible assets of $506 related to acquired customer relationships. The goodwill and intangible asset balances are expected to be deductible for tax purposes. The Company incurred $691 of transaction costs related to this acquisition that are included in professional services expense in the consolidated statements of operations. The table below summarizes the estimates of the fair value of the assets acquired and liabilities assumed as of the acquisition date: Purchase Price: Cash paid $ 3,250 Fair Value of Assets Acquired: Cash 975 Due from brokers, dealers and clearing organizations 2,098 Investment banking receivables 1,111 Other 606 Total $ 4,790 Fair Value of Liabilities Assumed: Accounts payable, accrued expenses and other liabilities $ 3,305 Fair value of net assets acquired $ 1,485 Purchase price allocated to goodwill 1,259 Purchase price allocated to intangible assets 506 Total purchase price $ 3,250 Securities 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. 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 closing. As of December 31, 2014, the Company estimated these aggregate contingent payments to be $4,070 and included this in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. During the year ended December 31, 2015, the Company made contingent payments of $2,166. During 2015, based on changes in its forecasted results, the Company reduced the estimate of the aggregate remaining contingent payments by $637, which is included in dividends and other on the consolidated statements of operations, and as of December 31, 2015 has estimated its remaining obligation to be $1,267. As a result of this purchase, the Company recorded goodwill of $2,570 and a finite-lived intangible asset related to acquired customer relationships of $2,500. The goodwill and intangible asset balances are expected to be deductible for tax purposes. The Company incurred $379 of transaction costs related to this acquisition that are included in professional services expense in the consolidated statements of operations. The table below summarizes the preliminary estimates of contingent consideration, and the fair value of the assets acquired and liabilities assumed as of the acquisition date: Purchase Price: Cash paid $ 1,000 Estimated contingent consideration 4,070 Total $ 5,070 Fair Value of Assets Acquired: Securities borrowed 675,709 Due from brokers, dealers and clearing organizations 357 Total $ 676,066 Fair Value of Liabilities Assumed: Securities loaned $ 676,066 Purchase price allocated to goodwill $ 2,570 Purchase price allocated to intangible assets 2,500 Total purchase price $ 5,070 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets: Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Balance as of January 1: Goodwill $ 2,570 $ — Accumulated impairment losses — — 2,570 — Goodwill acquired during year 1,259 2,570 Impairment losses — — Balance as of December 31: Goodwill 3,829 2,570 Accumulated impairment losses — — $ 3,829 $ 2,570 Goodwill is included in the Company’s capital markets segment. The Company performed its annual assessment of goodwill impairment during the third quarter of 2015. Based on the Company’s assessments, no impairment charges were recognized during the years ended December 31, 2015 and 2014. Intangible Assets The following table reflects the components of intangible assets as of the dates indicated: December 31, 2015 2014 Customer relationships $ 3,006 $ 2,500 Accumulated amortization (562 ) (149 ) Net $ 2,444 $ 2,351 The intangible asset balances are included in the Company’s capital markets segment. These intangible assets will be amortized over their estimated useful lives, of three to seven years, on a straight-line basis. For the years ended December 31, 2015, 2014 and 2013, amortization expense recognized was $413, $149 and $-0-, respectively. Estimated amortization expense for each of the next five years is as follows: Amount 2016 $ 524 2017 524 2018 468 2019 357 2020 357 |
Furniture, Equipment, Software
Furniture, Equipment, Software and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Furniture, Equipment, Software and Leasehold Improvements | Note 7. Furniture, Equipment, Software and Leasehold Improvements: Furniture, equipment, software and leasehold improvements, summarized by major classification, were: December 31, 2015 2014 Leasehold improvements $ 16,250 $ 17,340 Furniture and equipment 11,206 10,776 Software 6,845 7,303 34,301 35,419 Less: Accumulated depreciation and amortization (19,230 ) (20,031 ) $ 15,071 $ 15,388 For the years ended December 31, 2015, 2014 and 2013, depreciation expense was $2,899, $1,841, and $1,290, respectively. For the years ended December 31, 2015 and 2014, the Company incurred losses of $24 and $26, respectively, related to the write-off of retired fixed assets. For the year ended December 31, 2013, the Company did not incur any losses related to fixed assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes: The provision (benefit) for income taxes consists of the following for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Federal $ 383 $ (2,030 ) $ 3,010 State and local 168 126 317 $ 551 $ (1,904 ) $ 3,327 Current $ 551 $ (1,904 ) $ 3,327 Deferred (8,848 ) 2,245 (30,810 ) $ (8,297 ) $ 341 $ (27,483 ) Deferred tax assets and liabilities consisted of the following as of December 31, 2015 and 2014: 2015 2014 Deferred tax assets Net operating loss, domestic $ 16,986 $ 4,574 Stock-based and other compensation 15,579 23,105 Unrealized losses on investment 1,739 — AMT credit carryforward 1,661 1,666 Deferred rent 1,547 462 Partnership income 1,027 — Capital loss carryforward 344 5,383 Other, net 226 461 Total deferred tax assets 39,109 35,651 Deferred tax liabilities Partnership income — (2,077 ) Deferred expenses (1,268 ) (1,391 ) Net deferred tax assets 37,841 32,183 Valuation allowance (344 ) (3,535 ) Net deferred tax asset $ 37,497 $ 28,648 The Company evaluates the need for a valuation allowance against its deferred tax assets on a quarterly basis, based on the criteria in ASC 740, by assessing the positive and negative evidence to determine if it is more likely than not that some or all of the deferred tax assets will be realized. At December 31, 2014, the Company’s net deferred tax assets totaled $32,183 and were offset by a valuation allowance of $3,535. This valuation allowance related to capital loss carryforwards and was determined based on the Company’s conclusion that it was more likely than not that the benefits of these assets would not be realized in the future. At December 31, 2015, the Company’s net deferred tax assets totaled $37,841 and, based on its application of the guidance in ASC 740, were offset by a valuation allowance of $344. This valuation allowance related to state capital loss carryforwards. The Company will continue to assess the need to maintain a valuation allowance against its net deferred tax assets at each reporting date. Realization of the Company’s deferred tax assets will be dependent on the Company’s ability to generate future taxable income. As of December 31, 2015, the Company has $32,513 of domestic federal net operating loss carryforwards. The Company has state and local net operating loss carryforwards of $8,626 on a tax-effected basis, excluding the federal tax benefit. The net operating losses include no tax benefit related to windfalls from the vesting of equity compensation. The state and local net operating loss carryforwards begin to expire in 2028. As of December 31, 2015, the Company has no pre-tax capital loss carryforwards for federal tax purposes. As of December 31, 2015, the Company has pre-tax capital loss carryforwards for state tax purposes of $8,836 which will expire in 2017. The Company’s effective tax rate for the years ended December 31, 2015, 2014 and 2013 was 52.7%, 2.0% and (48.0%), respectively. The provision for income taxes results in effective tax rates that differ from the federal statutory rates. The reconciliation of the Company’s reported amount of income tax provision (benefit) attributable to continuing operations to the amount of income tax expense that would result from applying domestic federal statutory tax rates to income from continuing operations was: Year Ended December 31, 2015 2014 2013 Federal income tax provision, at statutory rate $ (5,515 ) $ 6,076 $ 20,045 State and local income taxes benefit, net of federal benefit (907 ) 1,322 2,693 Nondeductible expenses 295 281 7 Effect of stock-based compensation 989 87 82 Other, net (363 ) (622 ) 1,047 Uncertain tax positions — — — Valuation allowance (2,796 ) (6,803 ) (51,357 ) Effective income tax (benefit) provision $ (8,297 ) $ 341 $ (27,483 ) The Components of (loss) income before income taxes were as follows: For the Year Ended December 31, 2015 2014 2013 United States $ (15,758 ) $ 17,360 $ 57,368 United Kingdom — — (98 ) $ (15,758 ) $ 17,360 $ 57,270 As of December 31, 2015 and 2014, the Company had no liability for uncertain tax positions. The Company records interest and penalties in other operating expenses and other revenue respectively in the consolidated statements of operations. The Company did not recognize any interest related to tax uncertainties in the statements of operations for the years ended December 31, 2015 and 2014. The Company had no accrued interest related to uncertain tax positions as of December 31, 2015 and 2014. The Internal Revenue Service has completed its examination of the Company’s tax return for 2010 and did not propose any adjustments. The Company is not currently under audit related to its federal tax returns. As of December 31, 2015, tax years subsequent to December 31, 2012 remain open under the federal statute of limitations and for the Company’s significant state jurisdictions. The Company is currently under audit in New York State for tax years 2011 through 2013. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 9. Regulatory Capital Requirements: FBRCM and MLV are registered with the SEC and are members of FINRA. As such, each of FBRCM and MLV is subject to the minimum net capital requirements promulgated by the SEC. As of December 31, 2015 and 2014, FBRCM had net capital of $40,869 and $60,761, respectively, which was $38,793 and $56,994, respectively, in excess of its required net capital of $2,076 and $3,767, respectively. As of December 31, 2015, MLV had net capital of $663 which was $413 in excess of its required net capital of $250. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies: Contractual Obligations The Company has contractual obligations to make future payments in connection with non-cancelable lease agreements and other contractual commitments as well as uncalled capital commitments to investment partnerships that may be called over the next two years. The following table sets forth these contractual obligations by fiscal year: 2016 2017 2018 2019 2020 Thereafter Total Minimum rental commitments $ 5,508 $ 4,767 $ 3,846 $ 3,406 $ 3,488 $ 17,583 $ 38,598 These rental commitments are for operating leases of the Company. The Company currently has no commitments associated with capital leases. Equipment and office rent expense for the years ended December 31, 2015, 2014 and 2013 was $5,228, $5,351 and $5,353, respectively. The Company also has $212 of uncalled capital commitments to investment partnerships that may be called over the next two years. The Company cannot currently determine when, if ever, these capital commitments will be called. Clearing Brokers The Company’s broker-dealer subsidiaries clear all of their securities transactions through clearing brokers on a fully disclosed basis. Pursuant to the terms of the agreements between our broker-dealer subsidiaries and their respective clearing brokers, the clearing brokers have the right to charge our broker-dealer subsidiaries for losses that result from a counterparty’s failure to fulfill its contractual obligations. As the right to charge our broker-dealer subsidiaries has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. At December 31, 2015 and 2014, the Company has recorded no liabilities, and during the years ended December 31, 2015, 2014 and 2013, the Company did not incur any significant costs with regard to this right. Litigation As of December 31, 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 and MLV have been named as a defendant in a small number of securities claims involving their respective investment banking clients as a result of such broker-dealer’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 the underwriters 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 the underwriters are 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. The underwriter defendants have moved to dismiss the Second Amended Complaint and the briefing was completed in July 2015. In November 2015, MLV was named a defendant in two putative class action lawsuits alleging substantially identical claims against the officers and directors and underwriters of Miller Energy Resources, Inc. (“Miller”). The lawsuits, styled Goldberg v. Miller et al., and Gaynor v. Miller et al., are currently pending in the United States District Court for the Eastern District of Tennessee, and allege claims under Sections 11 and 12 of the Securities Act against nine underwriters for alleged material misrepresentations and omissions in the registration statement and prospectuses issued in connection with 6 offerings (February 13, 2013; May 8, 2013; June 28, 2013; September 26; 2013; October 17, 2013 (as to MLV only) and August 21, 2014) with an alleged aggregate offering price of approximately $151,000. The plaintiffs seek unspecified compensatory damages and reimbursement of certain costs and expenses. Although MLV is contractually entitled to be indemnified by Miller in connection with this lawsuit, Miller filed for bankruptcy in October 2015 and this likely will decrease or eliminate the value of the indemnity that MLV receives from Miller. The plaintiffs are currently seeking to remand to Tennessee state court; defendants are vigorously opposing the remand. 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 cases discussed above involving FBRCM and MLV are at a preliminary stage, and based on management’s review with counsel and present information known by management, a loss contingency for these matters was not probable and estimable as of December 31, 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. Other In February 2012, pursuant to a compensation plan, the Company granted certain employees an interest in a pool of assets valued at $3,000. The individual awards are subject to a 4-year cliff vesting requirement based on continued service. The terms of the compensation plan provide that any forfeited awards be reallocated to remaining award recipients and that the total value of the asset pool at the date of vesting be distributed. The specific assets in the pool may change over the vesting period and the Company may settle the awards in cash. The value of the asset pool was $3,849 as of December 31, 2015. During the years ended December 31, 2015, 2014 and 2013 the Company recorded expense of $896, $1,267 and $879, respectively, related to this plan. These amounts are included in compensation and benefits in the consolidated statements of operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Note 11. Shareholders’ Equity: Share Repurchases During the year ended December 31, 2015, the Company repurchased, in open market or privately negotiated transactions, 1,949,517 shares of its common stock at a weighted average share price of $23.20 per share for a total cost of $45,219. As of December 31, 2015, the Company had remaining authority to repurchase 624,123 additional shares. See Note 18 Subsequent Events During the year ended December 31, 2014, the Company repurchased 2,380,504 shares of its common stock at a weighted average share price of $26.92 per share for a total cost of $64,094. Included in these share repurchases were 1,178,607 shares repurchased in open market transactions at a weighted average share price of $25.76 per share for a total cost $30,362 and 1,201,897 shares repurchased pursuant to a modified “Dutch auction” tender offer at a weighted average share price of $28.06 per share and a total cost, including transaction costs, of $33,732. During the year ended December 31, 2013, the Company repurchased 2,377,583 shares of its common stock in privately negotiated or open market transactions at a weighted average share price of $23.36 per share for a total cost of $55,541. 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 years ended December 31, 2015, 2014 and 2013, the Company purchased 138,000 shares, 71,000 shares and 258,000, respectively, at weighted average prices per share of $22.56, $25.68 and $14.79, respectively, for a total cost of $3,113, $1,823 and $3,817, respectively. Dividends For the years ended December 31, 2015 and 2014, our Board of Directors has declared cash dividends on our common stock as summarized in the following table. Date Declared Record Date Payable Date Dividends per Share October 20, 2015 November 2, 2015 November 27, 2015 $ 0.20 June 16, 2015 July 31, 2015 August 28, 2015 $ 0.20 See Note 18 Subsequent Events 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 December 31, 2015, the Company had $779 of dividends payable related to such unvested RSUs and restricted shares. 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. FBR & Co. Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (“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” (“ASC 718”), the Company is required to recognize compensation expense relating to shares offered under the Purchase Plan. For the years ended December 31, 2015, 2014 and 2013, the Company recognized compensation expense of $177, $247 and $220, 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 performance goals. The following table presents compensation expense related to these awards for the periods indicated: Year Ended December 31, 2015 2014 2013 Stock options $ 7 $ (44 ) $ 484 Restricted shares 381 296 146 RSUs 6,627 8,897 7,589 The following table presents the unrecognized compensation related to unvested restricted shares of common stock and RSUs and the weighted average vesting period in which the expense will be recognized: As of December 31, 2015 Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ 244 $ 2,244 $ 431 Unvested awards 22,191 1,060,492 375,000 Weighted average vesting period 0.53 years 0.29 years 0.25 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 and weighted average vesting period are 882,663, $12,525 and 1.0 year, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. Stock Options A summary of option activity under the FBR & Co. Long Term Incentive Plan as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Exercise Prices Weighted-average Remaining Contractual Life Share Balance as of December 31, 2012 1,288,027 $ 21.72 2.12 Granted — — Forfeitures/Expirations (102,802 ) 24.14 Option Exercised (118,422 ) 20.34 Share Balance as of December 31, 2013 1,066,803 $ 21.63 0.13 Granted — — Forfeitures/Expirations (13,334 ) 22.44 Option Exercised (63,368 ) 16.87 Share Balance as of December 31, 2014 990,101 $ 21.92 0.08 Granted — — Forfeitures/Expirations (80,651 ) 26.79 Option Exercised (448,657 ) 21.49 Share Balance as of December 31, 2015 460,793 $ 21.49 1.99 Options Exercisable as of December 31, 2015 460,793 $ 21.49 1.99 The Company did not grant any options during the years ended December 2015, 2014 and 2013. Restricted Stock A summary of unvested restricted stock awards as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 6,252 $ 25.04 0.15 Granted 10,421 24.23 0.43 Vestings (6,252 ) 26.13 Forfeitures — — Share Balance as of December 31, 2013 10,421 $ 24.23 0.43 Granted 12,218 26.19 0.42 Vestings (10,421 ) 24.23 Forfeitures — — Share Balance as of December 31, 2014 12,218 $ 26.19 0.42 Granted 22,191 22.02 0.53 Vestings (12,218 ) 26.19 Forfeitures — — Share Balance as of December 31, 2015 22,191 22.02 0.53 RSUs A summary of unvested restricted stock units as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 1,667,411 $ 15.72 2.10 Granted 827,562 18.94 Vestings (501,307 ) 22.11 Forfeitures (90,332 ) 14.58 Share Balance as of December 31, 2013 1,903,334 $ 15.69 1.88 Granted 374,939 24.71 Vestings (162,993 ) 18.81 Forfeitures (126,368 ) 16.82 Share Balance as of December 31, 2014 1,988,912 $ 17.06 1.17 Granted 372,547 23.44 Vestings (328,415 ) 17.29 Forfeitures (89,889 ) 19.03 Share Balance as of December 31, 2015 1,943,155 $ 18.06 0.62 Included in the RSUs granted during the year ended December 31, 2015 are 230,258 RSU awards that will vest based on both individual service requirements and the achievement of a specified performance goal. In order for the performance goal to be met at a minimum level and for the awards to vest at a 50% rate, the tangible book value of FBR & Co., measured on a per share basis, must increase 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”). The awards will vest at a 100% level if FBR & Co. achieves a 9% annual growth rate over the 2015 performance period and the awards will vest at a proportionate rate at annual growth rates between 6% and 9%. During the year ended December 31, 2015, no compensation was recognized for these awards based on the Company’s assessment that the minimum performance threshold will not be met. There were 277,405 RSUs granted during the year ended December 31, 2014 that will vest based on both individual service requirements and the achievement of a specified performance goal (“2014 performance condition RSUs”). Additionally, there were 375,000 RSUs granted during the year ended December 31, 2013 that will vest based on both individual service requirements and the achievement of a specified performance goal (“2013 performance condition RSUs”). During the year ended December 31, 2015, for the 2014 performance condition RSUs the Company recognized compensation based on its assessment that the minimum performance threshold will not be met, and for the 2013 performance condition RSUs the Company recognized compensation based on its assessment that the performance threshold will be met at a 100% vesting level. Deferred Compensation Awards 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 restricted shares of common stock or RSUs in lieu of cash payments. These shares and RSUs are issued to an irrevocable trust for the benefit of the employees and are not returnable to the Company. For the years ended December 31, 2015, 2014 and 2013, the Company granted such stock-based awards with an aggregate fair value upon grant date of $630, $7,317 and $2,099, respectively. A summary of restricted stock irrevocable trust awards as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 5,901 $ 19.60 0.64 Granted — — Vestings (4,399 ) 16.15 Share Balance as of December 31, 2013 1,502 $ 13.51 0.46 Granted — — Vestings (1,225 ) 14.40 Share Balance as of December 31, 2014 277 $ 9.56 1.10 Granted — — Vestings — — Share Balance as of December 31, 2015 277 $ 9.56 0.11 A summary of restricted stock unit awards held in the irrevocable trust as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 185,340 $ 18.68 1.48 Granted 127,977 16.40 Vestings (77,953 ) 19.45 Share Balance as of December 31, 2013 235,364 $ 18.09 1.92 Granted 294,843 24.82 Vestings (34,737 ) 15.43 Share Balance as of December 31, 2014 495,470 $ 20.79 1.68 Granted 26,549 23.73 Vestings (5,470 ) 9.56 Share Balance as of December 31, 2015 516,549 $ 21.10 0.79 |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 12. Net (Loss) 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 RSUs that are not subject to forfeiture. Diluted earnings per share includes the impact of dilutive securities such as stock options, and unvested shares of restricted stock and RSUs that are subject to forfeiture. The following table presents the computations of basic and diluted earnings per share for the periods indicated: Year Ended Year Ended Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Basi c Dilute d Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,069 8,069 10,283 10,283 11,963 11,963 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,182 — 997 Weighted average common and common equivalent shares outstanding (in thousands) 8,069 8,069 10,283 11,465 11,963 12,960 Net (loss) income applicable to common stock $ (7,461 ) $ (7,461 ) $ 17,019 $ 17,019 $ 92,912 $ 92,912 Net (loss) income per common share $ (0.92 ) $ (0.92 ) $ 1.66 $ 1.48 $ 7.77 $ 7.17 The following table presents the number of antidilutive stock options, unvested restricted stock and RSUs outstanding for the periods indicated (in thousands): Year Ended December 31, 2015 2014 2013 Stock Options—Employees and directors 461 731 840 Stock Options—Non-employee 32 27 32 Restricted Stock, unvested 22 12 8 Restricted Stock Units, unvested 1,943 1,074 1,136 Total 2,458 1,844 2,016 |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk and Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks And Uncertainties [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk and Credit Risk | Note 13. Financial Instruments with Off-Balance-Sheet Risk and Credit Risk: Financial Instruments The Company’s trading and investment activities include equity securities, convertible debt securities, corporate debt securities, bank loans, and listed equity options that are primarily traded in United States markets. The Company also invests in non-registered investment funds that trade and invest in public and non-public debt and equity securities. As of December 31, 2015 and 2014, the Company had not entered into any transactions involving financial instruments that would expose the Company to significant related off-balance-sheet risk. In addition, as part of its market making activities, the Company sells equity and debt securities it does not currently own (financial instruments sold, not yet purchased—see Note 3 Financial Instruments Market Risk The securities industry is subject to numerous risks, including the risk of loss associated with the underwriting, ownership, and trading of securities, and the risk of reduced revenues in periods of reduced demand for security offerings and activity in secondary trading markets. Changing economic and market trends may negatively impact the liquidity and value of the Company’s investments and the level of security offerings underwritten by the Company, which may adversely affect the Company’s revenues and profitability. Market risk is primarily caused by movements in market prices of the Company’s trading and investment securities and changes in value of the underlying securities of the investment funds in which the Company invests. The Company’s trading securities and investments are also subject to interest rate volatility and possible illiquidity in markets in which the Company trades or invests. The Company seeks to manage market risk through monitoring procedures. The Company’s principal transactions are primarily long and short equity and convertible debt transactions. Positions taken and commitments made by the Company, including those made in connection with investment banking activities, may result in substantial amounts of exposure to individual issuers and businesses, including non-investment grade issuers, securities with low trading volumes and those not readily marketable. These issuers and securities may expose the Company to a higher degree of risk than associated with investment grade instruments. Credit Risk The Company’s broker-dealer subsidiaries clear all of their securities transactions through clearing brokers on a fully disclosed basis. Pursuant to the terms of the agreements between the Company’s broker-dealer subsidiaries and their clearing brokers, the clearing brokers have the right to charge the Company for losses that result from a counterparty’s failure to fulfill its contractual obligations. As the right to charge our broker-dealer subsidiaries has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. At December 31, 2015 and 2014, the Company has recorded no liabilities, and during the years ended December 31, 2015, 2014 and 2013, the Company did not incur any significant costs, with regard to this right. In addition, the Company has the right to pursue collection from the counterparties who do not perform under their contractual obligations. The Company monitors the credit standing of the clearing brokers and all counterparties with which it conducts business. The Company attempts to limit its credit spread risk by offsetting long or short positions in various related securities. Through indemnification provisions in agreements with clearing organizations, customer activities may expose the Company to off-balance-sheet credit risk. Financial instruments may have to be purchased or sold at prevailing market prices in the event a customer fails to settle a trade on its original terms or in the event cash and securities in customer margin accounts are not sufficient to fully cover customer obligations. The Company seeks to manage the risks associated with customer activities through customer screening and selection procedures as well as through requirements on customers to maintain margin collateral in compliance with various regulations and clearing organization policies. Credit risk from the Company’s securities lending operations arises if a lender or borrower defaults on an outstanding securities loan or borrow transaction and the cash or securities the Company is holding is insufficient to cover the amount they owe the Company for that receivable. The Company assigns credit limits and collateral posting thresholds for each counterparty and these limits and thresholds are reviewed periodically. The Company’s equity and debt securities held for trading and investment purposes include non-investment grade securities of privately held issuers with no ready markets. The concentration and illiquidity of these investments expose the Company to a higher degree of risk than associated with readily marketable securities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related-Party Transactions: From time to time the Company may provide interest bearing loans to employees, generally in connection with employee recruitment, that are typically short term in nature and repaid from incentive compensation earned by the employee. In connection with the MLV acquisition, during 2015 the Company made full-recourse employee loans that can be forgiven based on continued employment and performance over the next five years. Such employee loans will be forgiven and amortized to compensation and benefits expense based on a combination of continued employment and achievement of performance goals over the five-year term. As of December 31, 2015 and 2014 there was $3,485 and $143, respectively, of outstanding employee loans included in other receivables on the consolidated balance sheets. Professional Services Agreement During the year ended December 31, 2013, under a professional services agreement, as amended, with Crestview Partners, L.P. (“Crestview”), a party that prior to 2014 had designated for election two members of the Company’s Board of Directors, the Company agreed to pay Crestview Advisors, L.L.C. a $1,000 annual strategic advisory fee plus reimbursement of reasonable out-of-pocket expenses as long as Crestview continued to own at least 50% of the shares purchased by certain Crestview affiliates in our 2006 private offering. In June 2010, the Company and Crestview agreed to amend the professional services agreement to allow Crestview the ability to elect to receive a portion of their fee in restricted stock and/or options to purchase shares of the Company’s common stock. If elected, stock options would be issued with a strike price equal to the prevailing market price per share as of the grant date and with an expiration of 4 years. Based on Crestview’s election, in June 2013, the Company issued 32,432, such options to Crestview Advisors, L.L.C. valued at issuance at $270. The remainder of the annual strategic advisory fee was paid in cash. During the year ended December 31, 2013, the Company recognized $905 of expense associated with this agreement. Other During the third quarter of 2013, Crestview exercised options to purchase 54,369 shares of the Company’s common stock at an average price of $15.85 per share at an aggregate cost of $862. The Company subsequently repurchased those 54,369 shares and 670,631 other shares from Crestview at $26.25 per share at a total cost of $19,031. During the fourth quarter of 2013, Crestview exercised options to purchase 87,332 shares of the Company’s common stock at an average price of $12.02 per share at an aggregate cost of $1,050. The Company subsequently repurchased those 87,332 shares and 649,449 other shares from Crestview at $25.75 per share at a total cost of $18,974. Subsequent to these share repurchases, Crestview no longer holds any shares of the Company’s common stock and the Company no longer has any obligations under the Professional Services Agreement with Crestview discussed above. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 15. Employees of the Company are eligible to participate in the FBR & Co 401(k) Plan (the “401(k) Plan”), a defined contribution plan sponsored by FBR & Co. Participants may contribute to the Plan up to the limits set by the United States Internal Revenue Service. The Company may make discretionary contributions to the 401(k) Plan for the benefit of eligible employees contingent upon achieving certain annual Company goals. Employee contributions and discretionary Company matches paid by the Company are 100% vested when made. During the year ended December 31, 2014, the Company contributed $717 to the 401(k) Plan for the benefit of eligible employees. The Company did not make any comparable contributions during each of the years ended December 31, 2015 and 2013. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 16. Discontinued Operations: The Company completed the sale of the FBR Funds, a family of mutual funds, in October 2012. Subsequent to the sale closing, the Company has had no continuing involvement in the management of these funds. As a result of this sale transaction, the Company reports the results of its former asset management operations as discontinued operations. As described below, the Company received the final proceeds from this sale in 2013, and accordingly has no activity related to discontinued operations in 2015 or 2014. The results related to the former asset management operations reflected in the consolidated statements of operations are presented in the following table. Year Ended December 31, 2013 Revenues $ — Gain on sale of assets 8,944 Expenses 170 Income from discontinued operations before income taxes 8,774 Income tax provision 615 Income from discontinued operations, net of taxes $ 8,159 During the years ended December 31, 2015 and 2014, the Company did not generate any income from discontinued operations. For the year ended December 31, 2013, the Company received $19,294, representing its receipt of the final payment due from the sale of the FBR Funds, and generated $8,159 of net income from discontinued operations. The Company’s 2013 net income from discontinued operations reflects the change in value during the year of the contingent payment that was due from this sale and recorded as a receivable at December 31, 2012. The increase in value during 2013 was due primarily to market appreciation of the funds during the period subsequent to the sale. The tax provision recognized in 2013 relates primarily to state taxes on income that could not be offset by either net operating loss or capital loss carryforwards. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17. 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 have been included in the net revenue and pre-tax income of each segment. The decrease in the principal investing segment’s total assets as of December 31, 2015 compared to December 31, 2014 was a result of investing activities during the year ended December 31, 2015, in particular the settlement of a short-sale of a $75,000 face value, 7.25% U.S. Treasury security that was outstanding at December 31, 2014, and net reductions to the Company’s investment fund positions and other securities. The increase in the capital markets segment’s total assets as of December 31, 2014 compared to December 31, 2013 that is specified in the tables below was due primarily to the purchase of a securities lending business resulting in an increase in securities borrowed, an asset, of $594,674 which was offset by securities loaned, a liability, of $595,717 (see Note 4 Securities Lending The following tables illustrate the financial information for the Company’s segments for the periods indicated: Year Ended December 31, 2015 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 71,091 $ — $ 71,091 Institutional brokerage 45,442 — 45,442 Net investment income — 5,433 5,433 Interest 31,745 29 31,774 Dividends and other 1,103 589 1,692 Total revenues 149,381 6,051 155,432 Interest expense 23,877 11,160 35,037 Revenues, net of interest expense 125,504 (5,109 ) 120,395 Operating expenses: Variable 35,651 37 35,688 Fixed 98,331 2,134 100,465 Total 133,982 2,171 136,153 Pre-tax loss $ (8,478 ) $ (7,280 ) $ (15,758 ) Compensation and benefits: Variable $ 18,889 $ — $ 18,889 Fixed 57,165 1,409 58,574 Total $ 76,054 $ 1,409 $ 77,463 Total assets $ 834,205 $ 99,211 $ 933,416 Year Ended December 31, 2014 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 115,255 $ — $ 115,255 Institutional brokerage 56,182 — 56,182 Net investment income — 17,774 17,774 Interest 12,945 122 13,067 Dividends and other 549 481 1,030 Total revenues 184,931 18,377 203,308 Interest expense 9,505 11,678 21,183 Revenues, net of interest expense 175,426 6,699 182,125 Operating expenses: Variable 59,500 316 59,816 Fixed 102,426 2,523 104,949 Total 161,926 2,839 164,765 Pre-tax income $ 13,500 $ 3,860 $ 17,360 Compensation and benefits: Variable $ 42,408 $ 305 $ 42,713 Fixed 59,639 1,459 61,098 Total $ 102,047 $ 1,764 $ 103,811 Total assets $ 830,938 $ 204,159 $ 1,035,097 Year Ended December 31, 2013 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 196,213 $ — $ 196,213 Institutional brokerage 53,738 — 53,738 Net investment income — 6,920 6,920 Interest 1,050 740 1,790 Dividends and other 432 728 1,160 Total revenues 251,433 8,388 259,821 Interest expense — — — Revenues, net of interest expense 251,433 8,388 259,821 Operating expenses: Variable 103,755 1,179 104,934 Fixed 96,121 1,496 97,617 Total 199,876 2,675 202,551 Pre-tax income $ 51,557 $ 5,713 $ 57,270 Compensation and benefits: Variable $ 89,574 $ 1,172 $ 90,746 Fixed 53,013 961 53,974 Total $ 142,587 $ 2,133 $ 144,720 Total assets $ 308,870 $ 101,702 $ 410,572 During the first quarter of 2016, based on changes in the Company’s business profile since its IPO in 2007, including significant changes in capital allocation and revenue mix that have occurred over that time, the Company will revise its segment reporting structure. Beginning with the first quarter of 2016, the Company’s investment activities will be included within its capital markets segment and not as a separate reportable segment. This change is consistent with how the Company’s chief operating decision maker evaluates performance and allocates resources. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events: Share Repurchase Program On February 10, 2016, the Company’s Board of Directors approved an increase in the Company’s repurchase authorization to an aggregate of 1,000,000 shares. Dividend Declaration On February 10, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per common share to be paid on March 4, 2016 to shareholders of record as of the close of business on February 22, 2016. |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | Note 19. Quarterly Data (Unaudited): The following tables set forth selected information for each of the fiscal quarters during the years ended December 31, 2015 and 2014. The selected quarterly data is derived from unaudited financial statements of the Company and has been prepared on the same basis as the annual, audited financial statements to include, in the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for fair statement of the results for such periods: Note: The sum of quarterly earnings per share amounts may not equal full year earnings per share amounts due to differing average outstanding shares amounts for the respective periods. Revenues, net of interest expense Net (loss) income before income taxes Net (loss) income Basic (loss) earnings per share Diluted (loss) earnings per share 2015 First Quarter $ 27,095 $ (3,843 ) $ (2,522 ) $ (0.29 ) $ (0.29 ) Second Quarter 44,256 4,398 2,899 0.36 0.32 Third Quarter 25,580 (6,309 ) (3,428 ) (0.43 ) (0.43 ) Fourth Quarter 23,464 (10,004 ) (4,410 ) (0.59 ) (0.59 ) Total Year $ 120,395 $ (15,758 ) $ (7,461 ) $ (0.92 ) $ (0.92 ) 2014 First Quarter $ 54,358 $ 9,015 $ 5,610 $ 0.51 $ 0.46 Second Quarter 57,098 8,975 6,976 0.65 0.58 Third Quarter 42,097 3,308 3,501 0.34 0.31 Fourth Quarter 28,572 (3,938 ) 932 0.10 0.09 Total Year $ 182,125 $ 17,360 $ 17,019 $ 1.66 $ 1.48 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidated Financial Statements and Basis of Presentation | Principles of Consolidated Financial Statements and Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior period amounts in order to conform with the current period presentation. On February 28, 2013, the Company affected a one-for-four reverse stock split of the Company’s issued and outstanding common stock. While this reverse stock split reduced the number of issued and outstanding common shares, it had no effect on the Company’s total shareholders’ equity. Pursuant to the requirements of the FBR & Co. Long Term Incentive Plan and the provisions of the reverse stock split, all outstanding stock awards under the plan have been adjusted. These adjustments reduced the number of outstanding awards and, in addition for options to purchase common stock, the applicable exercise price, but had no effect on the unrecognized compensation expense applicable to these awards. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), 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 these estimates. |
Cash Equivalents | Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less at the date of acquisition that are not held for sale in the ordinary course of business. As of December 31, 2015 and 2014, approximately 77% and 92%, respectively, of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities directly or indirectly guaranteed by the U.S. government. The Company holds cash in financial institutions in excess of FDIC insured limits. The Company periodically reviews the financial condition of the financial institutions and assesses the credit risk of such investments. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are recorded based upon the amount of cash advanced or received. Securities borrowed transactions facilitate the settlement process and require the Company to deposit cash or other collateral with the lender. With respect to securities loaned, the Company receives collateral in the form of cash. The amount of collateral required to be deposited for securities borrowed, or received for securities loaned, is an amount generally in excess of the market value of the applicable securities borrowed or loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained, or excess collateral recalled, when deemed appropriate. As of December 31, 2015 and 2014, and during the years then ended, all collateral received or paid was in the form of cash. A substantial portion of the Company’s interest revenue and interest expense results from these activities. The Company accounts for securities lending transactions in accordance with Accounting Standards Update (“ASU”) 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” requiring companies to report disclosures of offsetting assets and liabilities. The Company does not net securities borrowed and securities loaned and these items are presented on a gross basis in the consolidated balance sheets. |
Due from/to Brokers, Dealers, and Clearing Organizations | Due from/to Brokers, Dealers, and Clearing Organizations The Company clears all of its proprietary and customer transactions through other broker-dealers on a fully disclosed basis. The amount receivable from or payable to the clearing brokers represents the net of proceeds from unsettled securities sold, the Company’s clearing deposit and amounts receivable for commissions less amounts payable for unsettled securities purchased by the Company and amounts payable for clearing costs and other settlement charges. This amount also includes the cash collateral received for securities loaned less cash collateral for securities borrowed. Any amounts payable would be fully collateralized by all of the securities owned by the Company and held on deposit at the clearing broker. In addition, these balances may include unsettled syndicated loan trades. |
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. 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 an 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. 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. As a result of our adoption of Accounting Standards Update 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”) in 2015, these investment funds are no longer categorized within the fair value hierarchy. The estimated fair values of the Company’s financial instrument assets and liabilities which are not measured at fair value on the consolidated balance sheets are as follows: December 31, 2015 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 70,067 $ 70,067 $ — $ — $ 70,067 Due from broker, dealers and clearing organizations 5,513 — 5,513 — 5,513 Non-interest bearing receivables 7,324 — 7,324 — 7,324 Other investments, at cost (1) 5,000 — — 5,000 5,000 Financial Liabilities Accounts payable, accrued expenses and other liabilities (1) 18,680 — 18,680 — 18,680 (1) As of December 31, 2015, there were $1,539 of other investments, at cost and $1,267 of accounts payable, accrued expenses and other liabilities recorded at fair value on a non-recurring basis. December 31, 2014 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 108,962 $ 108,962 $ — $ — $ 108,962 Due from brokers, dealers and clearing organizations 94,489 — 94,489 — 94,489 Non-interest bearing receivables 8,576 — 8,576 — 8,576 Other investments, at cost 7,000 — — 7,395 7,395 Financial Liabilities Accounts payable, accrued expenses and other liabilities 23,093 — 23,093 — 23,093 The carrying amounts noted above for cash and cash equivalents, due from brokers, dealers and clearing organizations, non-interest bearing receivables, and accounts payable, accrued expenses and other liabilities approximate fair value due to the short term nature of these items and/or minimal credit risk. The fair value of other investments, at cost, which primarily include non-public equity securities, was determined based on the Company’s assessment of enterprise values as discussed above. |
Securities and Principal Investments | Securities and Principal Investments Trading securities and investments owned by the Company’s broker-dealer subsidiaries and financial instruments sold, not yet purchased are recorded on the trade-date and carried at fair value. Realized and unrealized gains and losses from trading desk securities are reflected in institutional brokerage revenue in the consolidated statements of operations. Realized and unrealized gains and losses from investment positions are reflected in net investment income in the consolidated statements of operations. Marketable equity and debt securities held for investment purposes at non-broker-dealer subsidiaries are recorded on the trade date and designated as either available-for-sale or trading investments pursuant to ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”). These investments are carried at fair value with resulting unrealized gains and losses on available-for-sale securities reflected in accumulated other comprehensive income in the consolidated balance sheets and unrealized gains and losses on trading securities reflected in net investment income in the consolidated statements of operations. Investments in equity securities of non-public companies that are held in non-broker-dealer subsidiaries are carried at cost, unless an election is made pursuant to ASC 825, “Financial Instruments” (“ASC 825”), to account for the security at fair value. Such elections are made at the date of purchase based on the Company’s assessment of the prospective liquidity of the non-public equity security. The Company evaluates available-for-sale securities and investments in securities of non-public companies carried at cost for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The value of the Company’s investments in securities of non-public companies and marketable equity securities designated as available-for-sale can fluctuate significantly. Such values may be based on unobservable inputs, including significant assumptions of the Company and consideration of the liquidity and size of the Company’s position. In evaluating these investments for other-than-temporary impairment, consideration is given to (1) the length of time and the extent to which the fair value has been lower than carrying value, (2) the severity of the decline in fair value, (3) the financial condition and near-term prospects of the issuer, and (4) the Company’s intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. If it is determined that an investment impairment is other-than-temporary then the amount that the fair value is below its current basis is recorded as an impairment charge and recorded through earnings in net investment income in the consolidated statements of operations. For unrealized losses that are determined to be temporary, the Company continues to evaluate these at each reporting date. If the Company determines at a future date that an impairment of a marketable equity security is other-than-temporary, the applicable unrealized loss will be reclassified from accumulated other comprehensive income and recognized as an other-than-temporary impairment loss at the time the determination is made. Realized gains and losses on sales of equity and debt securities are determined using the specific identification method. For restricted shares, including private company shares, these investments by their nature have limited or no price transparency. Adjustments to carrying value may be based on third-party transactions evidencing a change in value and output from the Company’s valuation models and estimates of fair value. In reaching that determination, the Company may consider factors such as, but not limited to, the financial performance of the companies relative to projections, trends within sectors, underlying business models and expected exit timing and strategy. The Company’s investments in proprietary investment funds include non-registered investment companies. As of December 31, 2015 and 2014, these investments are comprised of non-registered investment companies where the underlying fund investments consist primarily of corporate and asset-backed fixed income securities. These funds record their investments in securities at fair value and report NAV to investors representing the fair value of the underlying investments held by the funds. The funds’ determination of these fair values is a matter of judgment. The Company reflects the increase/decrease in NAV (including realized and unrealized gains and losses) in net investment income in the consolidated statements of operations. The Company’s disposition of these investment funds may be subject to contractual restrictions. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s intangible assets consist of goodwill and intangible assets with finite useful lives. All of these intangible assets were recognized as a result of business combinations. Goodwill is not amortized but is tested annually for impairment (during the third quarter) or more frequently if an adverse event occurs that may indicate impairment. The values of the intangible assets with finite useful lives are amortized in proportion to their expected economic benefit over their estimated useful life or straight-line if the economic benefit cannot be reliably determined. These intangible assets are periodically tested for impairment by comparing expected future gross cash flows to the asset’s carrying amount. If the expected gross cash flows are less than the carrying amount, the asset is impaired and is written-down to its fair value. |
Furniture, Equipment, Software and Leasehold Improvements | Furniture, Equipment, Software and Leasehold Improvements Furniture, equipment, software and leasehold improvements are stated at cost less accumulated depreciation and amortization. Furniture and equipment are depreciated using the straight-line method over their estimated useful lives of three to five years. Amortization of purchased software is recorded over the estimated useful lives of three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of the useful life or lease term. |
Leases | Leases The Company leases its corporate headquarters and other offices under non-cancelable leases. The terms of the Company’s lease agreements range up to 10 years and may contain renewal options, escalation clauses, rent-free periods and operating cost adjustments. For leases that contain escalation clauses or rent-free periods, the Company recognizes the related rent expense on a straight-line basis from the date the Company takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and amounts payable under the leases as part of accounts payable and accrued expenses and other liabilities. Lease incentives received upon entering into certain leases are recognized on a straight-line basis as a reduction of rent expense from the date the Company takes possession of the property or receives the incentive to the end of the initial lease term. The Company records the unamortized portion of lease incentives as part of accounts payable, accrued expenses and other liabilities. |
Investment Banking Revenues | Investment Banking Revenues Capital raising revenues represent fees earned from private placement transactions and from public offerings of securities in which the Company acts as placement agent or underwriter. These revenues consist of placement fees, selling concessions, underwriting fees, management fees and reimbursed expenses. Advisory revenues represent fees earned from mergers and acquisitions, mutual conversions, financial restructuring and other advisory services provided to clients. Capital raising revenues are recorded as revenue at the time the underwriting or private placement is completed under the terms of each engagement. Advisory fees are recorded as revenue when the related service has been rendered and the client is contractually obligated to pay. Certain fees received in advance of services rendered are deferred and recognized as revenue over the service period. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded or cancelled, at which time such expenses are recognized. |
Institutional Brokerage Revenues | Institutional Brokerage Revenues Institutional brokerage revenues consist of commissions resulting from securities transactions executed as agent or principal and related net trading gains and losses. Revenues generated from securities transactions and related commission income and expense are recorded on the trade date. Institutional brokerage revenues also include direct payments received by the Company for equity research. |
Compensation and Benefits | Compensation and Benefits Compensation and benefits includes base salaries, incentive compensation, stock-based compensation, employee benefit costs, and employer taxes. Incentive compensation is a significant component of compensation expense and is accrued based on the Company’s performance and the contribution of key business units, and in certain limited cases, using pre-defined formulas. The Company’s compensation accruals are reviewed and evaluated on a quarterly basis. The Company recognizes stock-based compensation expense in the consolidated statements of operations based on the grant-date fair value of awards of equity instruments issued to employees. The grant-date fair value is based on the closing price of FBR & Co.’s common stock on the date of grant. The expense is recognized over the period during which employees are required to provide service. The expense is recorded net of an estimated forfeiture rate for awards on the date of grant. |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return. The Company is also subject to income tax in various states and municipalities in which it operates. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities represent the differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates. The measurement of net deferred tax assets is adjusted by a valuation allowance if, based on our evaluation and our consideration of the criteria in ASC 740, “Income Taxes” (“ASC 740”), it is more likely than not that they will not be realized. Tax liabilities for uncertain tax positions are recorded in accordance with ASC 740. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of other operating expenses in the consolidated statements of operations. |
Other Comprehensive Income | Other Comprehensive Income Comprehensive income includes net income as currently reported by the Company on the consolidated statements of operations adjusted for other comprehensive income. Other comprehensive income for the Company represents changes in unrealized gains and losses related to the Company’s investment securities accounted for as available-for-sale with changes in fair value recorded through shareholders’ equity. |
Income Per Share | Income Per Share Basic earnings per common share is calculated by dividing net income (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 common share is calculated by adjusting the weighted average outstanding shares to include the dilutive effect of unvested RSUs and shares of restricted stock that are subject forfeiture and the conversion of all potentially dilutive options to purchase common stock. |
Recent Accounting Pronouncements | 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. 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. 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 with early adoption permitted. A retrospective transition approach is required. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented. The Company adopted ASU 2015-07 in the fourth quarter of 2015 with no material impact on its consolidated financial statements or disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The amendments in ASU 2016-01 address certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017. Except for the early application guidance outlined in ASU 2016-01, early adoption is not permitted. The Company is evaluating the impact of the new guidance on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Fair Values of Financial Instrument Assets and Liabilities Which are Not Measured at Fair Value on the Consolidated Balance Sheets | The estimated fair values of the Company’s financial instrument assets and liabilities which are not measured at fair value on the consolidated balance sheets are as follows: December 31, 2015 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 70,067 $ 70,067 $ — $ — $ 70,067 Due from broker, dealers and clearing organizations 5,513 — 5,513 — 5,513 Non-interest bearing receivables 7,324 — 7,324 — 7,324 Other investments, at cost (1) 5,000 — — 5,000 5,000 Financial Liabilities Accounts payable, accrued expenses and other liabilities (1) 18,680 — 18,680 — 18,680 (1) As of December 31, 2015, there were $1,539 of other investments, at cost and $1,267 of accounts payable, accrued expenses and other liabilities recorded at fair value on a non-recurring basis. December 31, 2014 Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 108,962 $ 108,962 $ — $ — $ 108,962 Due from brokers, dealers and clearing organizations 94,489 — 94,489 — 94,489 Non-interest bearing receivables 8,576 — 8,576 — 8,576 Other investments, at cost 7,000 — — 7,395 7,395 Financial Liabilities Accounts payable, accrued expenses and other liabilities 23,093 — 23,093 — 23,093 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Items Measured at Fair Value On a Recurring Basis | The following tables set forth, by level within the fair value hierarchy, financial instruments, including long-term investments accounted for under ASC 820 as of December 31, 2015 and 2014, respectively. 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 December 31, 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 $ 13,221 $ 5,586 $ — $ 7,635 Convertible and fixed income debt instruments 815 — 815 — 14,036 5,586 815 7,635 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 13,849 5,415 — 8,434 Warrants 436 — — 436 14,285 5,415 — 8,870 Total 28,321 $ 11,001 $ 815 $ 16,505 Investment funds valued at net asset value (1) 66,602 Total financial instruments owned, at fair value $ 94,923 Financial instruments sold, not yet purchased, at fair value: Marketable and non-public equity securities $ 1,933 $ 1,933 $ — $ — Convertible and fixed income debt instruments 1 — 1 — Total $ 1,934 $ 1,933 $ 1 $ — (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. 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 Total 61,159 $ 15,107 $ 42,864 $ 3,188 Investment funds valued at net asset value (1) 104,888 Total financial instruments owned, at fair value $ 166,047 Financial instruments sold, 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 $ — (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. |
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 December 31, 2015: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach—assets $ 16,069 Over-the-counter trading activity $0 - $14.10/share $11.13 Black-Scholes—assets $ 436 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 1.9% 1.9% 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—assets $ 2,224 Over-the-counter trading activity $ 0 - $34.00/share $11.56 Black-Scholes—assets $ 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 years ended December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets: Year Ended December 31, Year Ended December 31, 2015 2014 Trading Securities Trading Securities Financial Instruments Beginning balance, January 1, $ 3,188 $ 11,535 $ (1,499 ) Total net losses (realized/unrealized) included in earnings (332 ) (254 ) (122 ) Purchases 75,173 124,223 6,043 Sales/distributions (61,495 ) (126,067 ) (4,422 ) Transfers out of Level 3 (29 ) (6,249 ) — Ending balance, December 31, $ 16,505 $ 3,188 $ — 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 $ (631 ) $ 266 $ — |
Gains (Losses) from Level 3 Financial Assets and Liabilities Measured on Recurring Basis | Gains and losses from Level 3 financial assets and liabilities that are measured at fair value on a recurring basis, that are included in earnings for the years ended December 31, 2015, 2014 and 2013, are reported in the following line descriptions on the Company’s consolidated statements of operations: Year Ended December 31, 2015 2014 2013 Total gains and losses included in earnings for the period: Institutional brokerage $ 422 $ 38 $ 1,722 Net investment (loss) income (754 ) (415 ) 2,648 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage 123 (38 ) 438 Net investment (loss) income (754 ) 304 2,551 |
Financial Instruments Held for Investment - Designated as Trading | Net gains and losses on such trading securities as of the dates indicated were as follows: Year Ended December 31, 2015 2014 2013 Net (loss) gains recognized on trading securities $ (1,442 ) $ 3,630 $ 1,213 Less: Net loss (gains) recognized on trading securities sold during the period 933 (3,732 ) (261 ) Unrealized (losses) gains recognized on trading securities still held at the reporting date $ (509 ) $ (102 ) $ 952 |
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 December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 38,972 $ — $ 57,532 $ — Multi-strategy 18,930 — 37,890 — Private equity funds 8,700 212 9,466 2,586 Total $ 66,602 $ 212 $ 104,888 $ 2,586 |
Financial Instruments Held for Investment - Designated as Available-for-Sale | Gross unrealized gains and losses on these 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 periods indicated. Year Ended December 31, 2015 2014 Accumulated other comprehensive income, Beginning balance $ 44 $ 34 Other comprehensive income before reclassifications — 10 Amounts reclassified from other comprehensive income (44 ) — Accumulated other comprehensive income, at period end $ — $ 44 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Detail of the Amounts Included in Accumulated Other Comprehensive Income and Reclassified to Earnings | The following provides detail of the amounts included in accumulated other comprehensive income and reclassified to earnings during the specified periods: Year Ended December 31, 2015 2014 2013 Beginning balance $ 44 $ 34 $ (1,094 ) Net unrealized investment gains (losses) during the period: Unrealized holding gains (losses), net of taxes — 10 619 Reclassification adjustment for recognized losses included in net income, net of taxes (44 ) — 509 Ending balance $ — $ 44 $ 34 |
Securities Lending (Tables)
Securities Lending (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Securities Lending [Abstract] | |
Gross and Net Securities Borrowing and Lending Balances | The following tables present the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of December 31, 2015 and 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 As of December 31, 2015 Securities borrowed $ 685,037 $ — $ 685,037 $ 685,037 $ — Securities loaned $ 687,443 $ — $ 687,443 $ 687,443 $ — As of December 31, 2014 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. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
MLV [Member] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date | The table below summarizes the estimates of the fair value of the assets acquired and liabilities assumed as of the acquisition date: Purchase Price: Cash paid $ 3,250 Fair Value of Assets Acquired: Cash 975 Due from brokers, dealers and clearing organizations 2,098 Investment banking receivables 1,111 Other 606 Total $ 4,790 Fair Value of Liabilities Assumed: Accounts payable, accrued expenses and other liabilities $ 3,305 Fair value of net assets acquired $ 1,485 Purchase price allocated to goodwill 1,259 Purchase price allocated to intangible assets 506 Total purchase price $ 3,250 |
Lazard Capital Markets LLC [Member] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date | The table below summarizes the preliminary estimates of contingent consideration, and the fair value of the assets acquired and liabilities assumed as of the acquisition date: Purchase Price: Cash paid $ 1,000 Estimated contingent consideration 4,070 Total $ 5,070 Fair Value of Assets Acquired: Securities borrowed 675,709 Due from brokers, dealers and clearing organizations 357 Total $ 676,066 Fair Value of Liabilities Assumed: Securities loaned $ 676,066 Purchase price allocated to goodwill $ 2,570 Purchase price allocated to intangible assets 2,500 Total purchase price $ 5,070 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Balance as of January 1: Goodwill $ 2,570 $ — Accumulated impairment losses — — 2,570 — Goodwill acquired during year 1,259 2,570 Impairment losses — — Balance as of December 31: Goodwill 3,829 2,570 Accumulated impairment losses — — $ 3,829 $ 2,570 |
Components of Intangible Assets | The following table reflects the components of intangible assets as of the dates indicated: December 31, 2015 2014 Customer relationships $ 3,006 $ 2,500 Accumulated amortization (562 ) (149 ) Net $ 2,444 $ 2,351 |
Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows: Amount 2016 $ 524 2017 524 2018 468 2019 357 2020 357 |
Furniture, Equipment, Softwar34
Furniture, Equipment, Software and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Furniture, Equipment, Software and Leasehold Improvements Summarized by Major Classification | Furniture, equipment, software and leasehold improvements, summarized by major classification, were: December 31, 2015 2014 Leasehold improvements $ 16,250 $ 17,340 Furniture and equipment 11,206 10,776 Software 6,845 7,303 34,301 35,419 Less: Accumulated depreciation and amortization (19,230 ) (20,031 ) $ 15,071 $ 15,388 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
The (Benefit) Provision for Income Taxes | The provision (benefit) for income taxes consists of the following for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Federal $ 383 $ (2,030 ) $ 3,010 State and local 168 126 317 $ 551 $ (1,904 ) $ 3,327 Current $ 551 $ (1,904 ) $ 3,327 Deferred (8,848 ) 2,245 (30,810 ) $ (8,297 ) $ 341 $ (27,483 ) |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following as of December 31, 2015 and 2014: 2015 2014 Deferred tax assets Net operating loss, domestic $ 16,986 $ 4,574 Stock-based and other compensation 15,579 23,105 Unrealized losses on investment 1,739 — AMT credit carryforward 1,661 1,666 Deferred rent 1,547 462 Partnership income 1,027 — Capital loss carryforward 344 5,383 Other, net 226 461 Total deferred tax assets 39,109 35,651 Deferred tax liabilities Partnership income — (2,077 ) Deferred expenses (1,268 ) (1,391 ) Net deferred tax assets 37,841 32,183 Valuation allowance (344 ) (3,535 ) Net deferred tax asset $ 37,497 $ 28,648 |
Provision Attributable to Continuing Operations to the Amount of Income Tax Expense | The reconciliation of the Company’s reported amount of income tax provision (benefit) attributable to continuing operations to the amount of income tax expense that would result from applying domestic federal statutory tax rates to income from continuing operations was: Year Ended December 31, 2015 2014 2013 Federal income tax provision, at statutory rate $ (5,515 ) $ 6,076 $ 20,045 State and local income taxes benefit, net of federal benefit (907 ) 1,322 2,693 Nondeductible expenses 295 281 7 Effect of stock-based compensation 989 87 82 Other, net (363 ) (622 ) 1,047 Uncertain tax positions — — — Valuation allowance (2,796 ) (6,803 ) (51,357 ) Effective income tax (benefit) provision $ (8,297 ) $ 341 $ (27,483 ) |
Components of (Loss) Income Before Income Taxes | The Components of (loss) income before income taxes were as follows: For the Year Ended December 31, 2015 2014 2013 United States $ (15,758 ) $ 17,360 $ 57,368 United Kingdom — — (98 ) $ (15,758 ) $ 17,360 $ 57,270 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contractual Obligations by Fiscal Year | The following table sets forth these contractual obligations by fiscal year: 2016 2017 2018 2019 2020 Thereafter Total Minimum rental commitments $ 5,508 $ 4,767 $ 3,846 $ 3,406 $ 3,488 $ 17,583 $ 38,598 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Cash Dividends Declared on Common Stock | For the years ended December 31, 2015 and 2014, our Board of Directors has declared cash dividends on our common stock as summarized in the following table. Date Declared Record Date Payable Date Dividends per Share October 20, 2015 November 2, 2015 November 27, 2015 $ 0.20 June 16, 2015 July 31, 2015 August 28, 2015 $ 0.20 |
Compensation Expense Related to Awards | The following table presents compensation expense related to these awards for the periods indicated: Year Ended December 31, 2015 2014 2013 Stock options $ 7 $ (44 ) $ 484 Restricted shares 381 296 146 RSUs 6,627 8,897 7,589 |
Unrecognized Compensation Related to Awards | The following table presents the unrecognized compensation related to unvested restricted shares of common stock and RSUs and the weighted average vesting period in which the expense will be recognized: As of December 31, 2015 Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ 244 $ 2,244 $ 431 Unvested awards 22,191 1,060,492 375,000 Weighted average vesting period 0.53 years 0.29 years 0.25 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 and weighted average vesting period are 882,663, $12,525 and 1.0 year, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. |
Summary of Option Activity under the FBR & Co. Long Term Incentive Plan | A summary of option activity under the FBR & Co. Long Term Incentive Plan as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Exercise Prices Weighted-average Remaining Contractual Life Share Balance as of December 31, 2012 1,288,027 $ 21.72 2.12 Granted — — Forfeitures/Expirations (102,802 ) 24.14 Option Exercised (118,422 ) 20.34 Share Balance as of December 31, 2013 1,066,803 $ 21.63 0.13 Granted — — Forfeitures/Expirations (13,334 ) 22.44 Option Exercised (63,368 ) 16.87 Share Balance as of December 31, 2014 990,101 $ 21.92 0.08 Granted — — Forfeitures/Expirations (80,651 ) 26.79 Option Exercised (448,657 ) 21.49 Share Balance as of December 31, 2015 460,793 $ 21.49 1.99 Options Exercisable as of December 31, 2015 460,793 $ 21.49 1.99 |
Summary of Unvested Restricted Stock Awards | A summary of unvested restricted stock awards as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 6,252 $ 25.04 0.15 Granted 10,421 24.23 0.43 Vestings (6,252 ) 26.13 Forfeitures — — Share Balance as of December 31, 2013 10,421 $ 24.23 0.43 Granted 12,218 26.19 0.42 Vestings (10,421 ) 24.23 Forfeitures — — Share Balance as of December 31, 2014 12,218 $ 26.19 0.42 Granted 22,191 22.02 0.53 Vestings (12,218 ) 26.19 Forfeitures — — Share Balance as of December 31, 2015 22,191 22.02 0.53 |
Summary of Unvested Restricted Stock Units | A summary of unvested restricted stock units as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 1,667,411 $ 15.72 2.10 Granted 827,562 18.94 Vestings (501,307 ) 22.11 Forfeitures (90,332 ) 14.58 Share Balance as of December 31, 2013 1,903,334 $ 15.69 1.88 Granted 374,939 24.71 Vestings (162,993 ) 18.81 Forfeitures (126,368 ) 16.82 Share Balance as of December 31, 2014 1,988,912 $ 17.06 1.17 Granted 372,547 23.44 Vestings (328,415 ) 17.29 Forfeitures (89,889 ) 19.03 Share Balance as of December 31, 2015 1,943,155 $ 18.06 0.62 |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock and Restricted Stock Unit Awards Held in the Irrevocable Trust | A summary of restricted stock irrevocable trust awards as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 5,901 $ 19.60 0.64 Granted — — Vestings (4,399 ) 16.15 Share Balance as of December 31, 2013 1,502 $ 13.51 0.46 Granted — — Vestings (1,225 ) 14.40 Share Balance as of December 31, 2014 277 $ 9.56 1.10 Granted — — Vestings — — Share Balance as of December 31, 2015 277 $ 9.56 0.11 |
RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Restricted Stock and Restricted Stock Unit Awards Held in the Irrevocable Trust | A summary of restricted stock unit awards held in the irrevocable trust as of December 31, 2015, and changes during the years ended December 31, 2015, 2014 and 2013 are presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted-average Remaining Vested Period Share Balance as of December 31, 2012 185,340 $ 18.68 1.48 Granted 127,977 16.40 Vestings (77,953 ) 19.45 Share Balance as of December 31, 2013 235,364 $ 18.09 1.92 Granted 294,843 24.82 Vestings (34,737 ) 15.43 Share Balance as of December 31, 2014 495,470 $ 20.79 1.68 Granted 26,549 23.73 Vestings (5,470 ) 9.56 Share Balance as of December 31, 2015 516,549 $ 21.10 0.79 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Earnings Per Share | The following table presents the computations of basic and diluted earnings per share for the periods indicated: Year Ended Year Ended Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Basi c Dilute d Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 8,069 8,069 10,283 10,283 11,963 11,963 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,182 — 997 Weighted average common and common equivalent shares outstanding (in thousands) 8,069 8,069 10,283 11,465 11,963 12,960 Net (loss) income applicable to common stock $ (7,461 ) $ (7,461 ) $ 17,019 $ 17,019 $ 92,912 $ 92,912 Net (loss) income per common share $ (0.92 ) $ (0.92 ) $ 1.66 $ 1.48 $ 7.77 $ 7.17 |
Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding | The following table presents the number of antidilutive stock options, unvested restricted stock and RSUs outstanding for the periods indicated (in thousands): Year Ended December 31, 2015 2014 2013 Stock Options—Employees and directors 461 731 840 Stock Options—Non-employee 32 27 32 Restricted Stock, unvested 22 12 8 Restricted Stock Units, unvested 1,943 1,074 1,136 Total 2,458 1,844 2,016 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Asset Management Operations Reflected in Consolidated Statements of Operations | The results related to the former asset management operations reflected in the consolidated statements of operations are presented in the following table. Year Ended December 31, 2013 Revenues $ — Gain on sale of assets 8,944 Expenses 170 Income from discontinued operations before income taxes 8,774 Income tax provision 615 Income from discontinued operations, net of taxes $ 8,159 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2015 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 71,091 $ — $ 71,091 Institutional brokerage 45,442 — 45,442 Net investment income — 5,433 5,433 Interest 31,745 29 31,774 Dividends and other 1,103 589 1,692 Total revenues 149,381 6,051 155,432 Interest expense 23,877 11,160 35,037 Revenues, net of interest expense 125,504 (5,109 ) 120,395 Operating expenses: Variable 35,651 37 35,688 Fixed 98,331 2,134 100,465 Total 133,982 2,171 136,153 Pre-tax loss $ (8,478 ) $ (7,280 ) $ (15,758 ) Compensation and benefits: Variable $ 18,889 $ — $ 18,889 Fixed 57,165 1,409 58,574 Total $ 76,054 $ 1,409 $ 77,463 Total assets $ 834,205 $ 99,211 $ 933,416 Year Ended December 31, 2014 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 115,255 $ — $ 115,255 Institutional brokerage 56,182 — 56,182 Net investment income — 17,774 17,774 Interest 12,945 122 13,067 Dividends and other 549 481 1,030 Total revenues 184,931 18,377 203,308 Interest expense 9,505 11,678 21,183 Revenues, net of interest expense 175,426 6,699 182,125 Operating expenses: Variable 59,500 316 59,816 Fixed 102,426 2,523 104,949 Total 161,926 2,839 164,765 Pre-tax income $ 13,500 $ 3,860 $ 17,360 Compensation and benefits: Variable $ 42,408 $ 305 $ 42,713 Fixed 59,639 1,459 61,098 Total $ 102,047 $ 1,764 $ 103,811 Total assets $ 830,938 $ 204,159 $ 1,035,097 Year Ended December 31, 2013 Capital Markets Principal Investing Total Revenues, net of interest expense: Investment banking $ 196,213 $ — $ 196,213 Institutional brokerage 53,738 — 53,738 Net investment income — 6,920 6,920 Interest 1,050 740 1,790 Dividends and other 432 728 1,160 Total revenues 251,433 8,388 259,821 Interest expense — — — Revenues, net of interest expense 251,433 8,388 259,821 Operating expenses: Variable 103,755 1,179 104,934 Fixed 96,121 1,496 97,617 Total 199,876 2,675 202,551 Pre-tax income $ 51,557 $ 5,713 $ 57,270 Compensation and benefits: Variable $ 89,574 $ 1,172 $ 90,746 Fixed 53,013 961 53,974 Total $ 142,587 $ 2,133 $ 144,720 Total assets $ 308,870 $ 101,702 $ 410,572 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Details of Quarterly Financial Information | The following tables set forth selected information for each of the fiscal quarters during the years ended December 31, 2015 and 2014. Note: The sum of quarterly earnings per share amounts may not equal full year earnings per share amounts due to differing average outstanding shares amounts for the respective periods. Revenues, net of interest expense Net (loss) income before income taxes Net (loss) income Basic (loss) earnings per share Diluted (loss) earnings per share 2015 First Quarter $ 27,095 $ (3,843 ) $ (2,522 ) $ (0.29 ) $ (0.29 ) Second Quarter 44,256 4,398 2,899 0.36 0.32 Third Quarter 25,580 (6,309 ) (3,428 ) (0.43 ) (0.43 ) Fourth Quarter 23,464 (10,004 ) (4,410 ) (0.59 ) (0.59 ) Total Year $ 120,395 $ (15,758 ) $ (7,461 ) $ (0.92 ) $ (0.92 ) 2014 First Quarter $ 54,358 $ 9,015 $ 5,610 $ 0.51 $ 0.46 Second Quarter 57,098 8,975 6,976 0.65 0.58 Third Quarter 42,097 3,308 3,501 0.34 0.31 Fourth Quarter 28,572 (3,938 ) 932 0.10 0.09 Total Year $ 182,125 $ 17,360 $ 17,019 $ 1.66 $ 1.48 |
Organization and Nature of Op42
Organization and Nature of Operations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Collaboration Arrangement Disclosure [Abstract] | |||
Investment banking revenue | 59.00% | 63.00% | 76.00% |
Percentage of investment banking revenues derived from major transactions | 56.00% | 70.00% | 68.00% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Additional Information (Detail) | Feb. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Reverse stock split | One-for-four reverse stock split | ||
Reverse stock split conversion ratio | 0.25 | ||
Cash equivalents, invested in money market funds | 77.00% | 92.00% | |
Maximum [Member] | |||
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Terms of lease agreements for corporate headquarters and other offices | 10 years | ||
Software [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Estimated useful life | 3 years | ||
Software [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture and Equipment [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Estimated useful life | 3 years | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies And Estimates [Line Items] | |||
Estimated useful life | 5 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Estimated Fair Values of Financial Instrument Assets and Liabilities Which are Not Measured at Fair Value on the Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Financial Assets | ||
Cash and cash equivalents | $ 70,067 | $ 108,962 |
Due from broker, dealers and clearing organizations | 5,513 | 94,489 |
Non-interest bearing receivables | 7,324 | 8,576 |
Other investments, at cost | 5,000 | 7,000 |
Financial Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 18,680 | 23,093 |
Estimated Fair Value [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 70,067 | 108,962 |
Due from broker, dealers and clearing organizations | 5,513 | 94,489 |
Non-interest bearing receivables | 7,324 | 8,576 |
Other investments, at cost | 5,000 | 7,395 |
Financial Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 18,680 | 23,093 |
Estimated Fair Value [Member] | Estimated Fair Value, Level 1 [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 70,067 | 108,962 |
Due from broker, dealers and clearing organizations | 0 | 0 |
Non-interest bearing receivables | 0 | 0 |
Other investments, at cost | 0 | 0 |
Financial Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 0 | 0 |
Estimated Fair Value [Member] | Estimated Fair Value, Level 2 [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Due from broker, dealers and clearing organizations | 5,513 | 94,489 |
Non-interest bearing receivables | 7,324 | 8,576 |
Other investments, at cost | 0 | 0 |
Financial Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 18,680 | 23,093 |
Estimated Fair Value [Member] | Estimated Fair Value, Level 3 [Member] | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Due from broker, dealers and clearing organizations | 0 | 0 |
Non-interest bearing receivables | 0 | 0 |
Other investments, at cost | 5,000 | 7,395 |
Financial Liabilities | ||
Accounts payable, accrued expenses and other liabilities | $ 0 | $ 0 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Estimated Fair Values of Financial Instrument Assets and Liabilities Which are Not Measured at Fair Value on the Consolidated Balance Sheets (Parenthetical) (Detail) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Other investments, at cost | $ 1,539 |
Accounts payable, accrued expenses and other liabilities | $ 1,267 |
Financial Instruments - Items M
Financial Instruments - Items Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 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 | $ 14,036 | $ 57,698 |
Financial instruments held for investment activities | 14,285 | 3,461 |
Total | 28,321 | 61,159 |
Investment funds valued at net asset value | 66,602 | 104,888 |
Total financial instruments owned, at fair value | 94,923 | 166,047 |
Financial instruments sold, not yet purchased, at fair value | 1,934 | 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 | 13,221 | 14,832 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | 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 | 815 | 42,864 |
Financial instruments sold, not yet purchased, at fair value | 1 | 2,317 |
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 | |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments sold, not yet purchased, at fair value | 84,950 | |
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 | 5,586 | 14,760 |
Financial instruments held for investment activities | 5,415 | 347 |
Total | 11,001 | 15,107 |
Investment funds valued at net asset value | 0 | 0 |
Total financial instruments owned, at fair value | 0 | 0 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | 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 | 5,586 | 14,758 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | 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 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
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 1 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments sold, not yet purchased, at fair value | 84,950 | |
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 | 815 | 42,864 |
Financial instruments held for investment activities | 0 | 0 |
Total | 815 | 42,864 |
Investment funds valued at net asset value | 0 | 0 |
Total financial instruments owned, at fair value | 0 | 0 |
Financial instruments sold, not yet purchased, at fair value | 1 | 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 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | 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 | 815 | 42,864 |
Financial instruments sold, not yet purchased, at fair value | 1 | 2,317 |
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 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments sold, not yet purchased, at fair value | 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 | 7,635 | 74 |
Financial instruments held for investment activities | 8,870 | 3,114 |
Total | 16,505 | 3,188 |
Investment funds valued at net asset value | 0 | 0 |
Total financial instruments owned, at fair value | 0 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | 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 | 7,635 | 74 |
Financial instruments sold, not yet purchased, at fair value | 0 | 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 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | 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 | |
Estimated Fair Value, Level 3 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments sold, not yet purchased, at fair value | 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 | 13,849 | 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 | 436 | 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 | 5,415 | 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 | 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 | 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 | 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 | 8,434 | 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 | $ 436 | $ 964 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | Aug. 04, 2014USD ($) | Dec. 31, 2015USD ($)SecurityShort_Sale | Dec. 31, 2014USD ($)SecurityShort_Sale | Dec. 31, 2013USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | $ 28,321,000 | $ 61,159,000 | ||
Number of Transfer made out of Level 3 and into Level 2 | Security | 1 | |||
Number of Transfer made out of Level 3 and into Level 1 | Security | 1 | 2 | ||
Payments of contingent consideration obligation | $ 2,166,000 | $ 1,000,000 | $ 0 | |
Contingent consideration payable | 1,267,000 | |||
Other-than-temporary impairment losses | 0 | 0 | 545,000 | |
Other-than-temporary impairment losses, cost method investment | 461,000 | |||
Financial instruments held for investment activities | $ 14,285,000 | 3,461,000 | ||
Number of short-sales | Short_Sale | 2 | |||
Face value amount | $ 75,000,000 | 75,000,000 | ||
Interest expense | 35,037,000 | 21,183,000 | 0 | |
Realized and unrealized gains | 9,954,000 | 10,451,000 | ||
Investment funds valued at net asset value | 66,602,000 | 104,888,000 | ||
Marketable securities with unrealized loss position | 0 | 0 | ||
Carrying value of investment | 4,257,000 | |||
Other investments, at cost | 6,539,000 | 7,000,000 | ||
Impairment losses | 461,000 | 0 | 0 | |
Other Investments [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments, at cost | 5,000,000 | |||
Proceeds from sale of corporate debt investment | 0 | 1,428,000 | 0 | |
Non-public equity security with a cost basis | 428,000 | 2,390,000 | ||
Proceeds maturity of note receivable carried at cost | 317,000 | |||
Gross Gain from sale of marketable securities | 1,176,000 | |||
Non Public Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments, at cost | 6,539,000 | 7,000,000 | ||
Available-for-Sale Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from sale of marketable securities | 191,000 | $ 0 | 25,431,000 | |
Gross Gain from sale of marketable securities | $ 91,000 | 698,000 | ||
Gross loss from sale of marketable securities | $ 32,000 | |||
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 | |||
Coupon rate of treasury securities | 4.625% | 7.25% | ||
Securities maturity date | 2016-11 | 2016-05 | ||
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 | |||
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 | |||
Short Sales One Matures On November 2015 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Face value amount | $ 100,000,000 | |||
Coupon rate of treasury securities | 4.50% | |||
Securities maturity date | 2015-11 | |||
Short Sales Two Matures On February 2016 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Face value amount | $ 100,000,000 | |||
Coupon rate of treasury securities | 4.50% | |||
Securities maturity date | 2016-02 | |||
Two Non Public Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial instruments held for investment activities | 6,510,000 | $ 6,148,000 | ||
U.S. Treasury Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest expense | $ 11,160,000 | 11,678,000 | ||
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 | 54.00% | |||
Amount of fair value redeemable on 60 days or less | $ 31,452,000 | |||
Percentage of fair value redeemable between 90 and 180 days | 46.00% | |||
Amount of fair value redeemable between 90 and 180 days | $ 26,450,000 | |||
Amount of redemption for fair value hedging funds | $ 28,000,000 | |||
Hedge Funds [Member] | Minimum [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Redeemable notice period on quarterly basis | 90 days | |||
Hedge Funds [Member] | Maximum [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Redeemable notice period | 60 days | |||
Redeemable notice period on quarterly basis | 180 days | |||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets measured at fair value on a non-recurring basis | $ 0 | 0 | ||
Liabilities measured at fair value on a non-recurring basis | 0 | 0 | ||
Lazard Capital Markets LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments of contingent consideration obligation | $ 1,000,000 | 2,166,000 | ||
Decrease in carrying value of liability due to securities lending | 637,000 | |||
Contingent consideration payable | $ 4,070,000 | |||
Estimated Fair Value, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | $ 16,505,000 | $ 3,188,000 | ||
Percentage of assets measured on recurring basis to assets | 1.80% | 0.30% | ||
Financial instruments held for investment activities | $ 8,870,000 | $ 3,114,000 | ||
Investment funds valued at net asset value | $ 0 | $ 0 |
Financial Instruments - Valuati
Financial Instruments - Valuation Technique and Unobservable Inputs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 16,069 | $ 2,224 |
Assets Approach [Member] | Minimum [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 0 | $ 0 |
Assets Approach [Member] | Maximum [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | 14.10 | 34 |
Assets Approach [Member] | Weighted Average [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 11.13 | $ 11.56 |
Black-Scholes - Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 436 | $ 964 |
Volatility | 30.00% | 30.00% |
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 1.90% | 2.10% |
Volatility, Weighted Average | 30.00% | 30.00% |
Black-Scholes - Assets [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 1.90% | 2.10% |
Financial Instruments - Changes
Financial Instruments - Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Trading Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 3,188 | $ 11,535 |
Total net losses (realized/unrealized) included in earnings | (332) | (254) |
Purchases | 75,173 | 124,223 |
Sales/distributions | (61,495) | (126,067) |
Transfers out of Level 3 | (29) | (6,249) |
Ending balance | 16,505 | 3,188 |
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 | (631) | 266 |
Financial Instruments Sold, not yet Purchased [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 0 | (1,499) |
Total net losses (realized/unrealized) included in earnings | (122) | |
Purchases | 6,043 | |
Sales/distributions | (4,422) | |
Transfers out of Level 3 | 0 | |
Ending balance | 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 |
Financial Instruments - Gains (
Financial Instruments - Gains (Losses) from Level 3 Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Institutional Brokerage [Member] | |||
Total gains and losses included in earnings for the period: | |||
Included in earnings | $ 422 | $ 38 | $ 1,722 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | 123 | (38) | 438 |
Net Investment (Loss) Income [Member] | |||
Total gains and losses included in earnings for the period: | |||
Included in earnings | (754) | (415) | 2,648 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | $ (754) | $ 304 | $ 2,551 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments Held for Investment - Designated as Trading (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract] | |||
Net (loss) gains recognized on trading securities | $ (1,442) | $ 3,630 | $ 1,213 |
Less: Net loss (gains) recognized on trading securities sold during the period | 933 | (3,732) | (261) |
Unrealized (losses) gains recognized on trading securities still held at the reporting date | $ (509) | $ (102) | $ 952 |
Financial Instruments - Company
Financial Instruments - Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 66,602 | $ 104,888 |
Unfunded Commitment | 212 | 2,586 |
Hedge Funds, Fixed Income/Credit-Related [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 38,972 | 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 | 18,930 | 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 | 8,700 | 9,466 |
Unfunded Commitment | $ 212 | $ 2,586 |
Financial Instruments - Finan53
Financial Instruments - 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 - Detail
Financial Instruments - Detail of the Amounts Included in Accumulated Other Comprehensive Income and Reclassified to Earnings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Accumulated other Comprehensive Income (Loss), Beginning balance | $ 44 | $ 34 | $ (1,094) |
Net unrealized investment gains (losses) during the period: | |||
Unrealized holding gains (losses), net of taxes | 0 | 10 | 619 |
Reclassification adjustment for recognized losses included in net income, net of taxes | (44) | 0 | 509 |
Accumulated other Comprehensive Income, Ending balance | $ 0 | $ 44 | $ 34 |
Financial Instruments - Chang55
Financial Instruments - Changes in the Company's Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized Cost And Fair Value Debt Securities [Abstract] | ||
Accumulated other comprehensive income, Beginning balance | $ 44 | $ 34 |
Other comprehensive income before reclassifications | 0 | 10 |
Amounts reclassified from other comprehensive income | (44) | 0 |
Accumulated other comprehensive income, at period end | $ 0 | $ 44 |
Securities Lending - Gross and
Securities Lending - Gross and Net Securities Borrowing and Lending Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Brokers And Dealers [Abstract] | ||
Gross amounts recognized | $ 685,037 | $ 594,674 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 685,037 | 594,674 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 685,037 | 594,674 |
Net amounts | 0 | 0 |
Gross amounts recognized | 687,443 | 595,717 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 687,443 | 595,717 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 687,443 | 595,717 |
Net amounts | $ 0 | $ 0 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 01, 2015 | Aug. 04, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Payments of contingent consideration obligation | $ 2,166 | $ 1,000 | $ 0 | ||
Purchase price allocated to goodwill | 3,829 | $ 2,570 | $ 0 | ||
Contingent consideration payable | $ 1,267 | ||||
Lazard Capital Markets LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Completed date of purchase of LCM's securities lending business | Aug. 4, 2014 | ||||
Payments of contingent consideration obligation | $ 1,000 | $ 2,166 | |||
Purchase price allocated to goodwill | 2,570 | ||||
Purchase price allocated to intangible assets | 2,500 | ||||
Transaction costs related to acquisition | 379 | ||||
Contingent consideration payable | $ 4,070 | ||||
Contingent on performance of business | 18 years | ||||
Decrease in aggregate remaining contingent payment | 637 | ||||
Business combination contingent consideration liability, remaining amount | $ 1,267 | ||||
Lazard Capital Markets LLC [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocated to intangible assets | $ 2,500 | ||||
MLV [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments of contingent consideration obligation | $ 3,250 | ||||
Percentage of voting interest acquired | 100.00% | ||||
Purchase price allocated to goodwill | $ 1,259 | ||||
Purchase price allocated to intangible assets | 506 | ||||
Transaction costs related to acquisition | $ 691 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 01, 2015 | Aug. 04, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchase Price: | |||||
Cash paid | $ 2,166 | $ 1,000 | $ 0 | ||
Fair Value of Liabilities Assumed: | |||||
Purchase price allocated to goodwill | 3,829 | $ 2,570 | $ 0 | ||
MLV [Member] | |||||
Purchase Price: | |||||
Cash paid | $ 3,250 | ||||
Total purchase price | 3,250 | ||||
Fair Value of Assets Acquired: | |||||
Cash | 975 | ||||
Due from brokers, dealers and clearing organizations | 2,098 | ||||
Investment banking receivables and Securities borrowed | 1,111 | ||||
Other | 606 | ||||
Total | 4,790 | ||||
Fair Value of Liabilities Assumed: | |||||
Accounts payable, accrued expenses and other liabilities | 3,305 | ||||
Fair value of net assets acquired | 1,485 | ||||
Purchase price allocated to goodwill | 1,259 | ||||
Purchase price allocated to intangible assets | 506 | ||||
Total purchase price | $ 3,250 | ||||
Lazard Capital Markets LLC [Member] | |||||
Purchase Price: | |||||
Cash paid | $ 1,000 | $ 2,166 | |||
Total purchase price | 4,070 | ||||
Total | 5,070 | ||||
Fair Value of Assets Acquired: | |||||
Due from brokers, dealers and clearing organizations | 357 | ||||
Investment banking receivables and Securities borrowed | 675,709 | ||||
Total | 676,066 | ||||
Fair Value of Liabilities Assumed: | |||||
Securities loaned | 676,066 | ||||
Fair value of net assets acquired | 5,070 | ||||
Purchase price allocated to goodwill | 2,570 | ||||
Purchase price allocated to intangible assets | 2,500 | ||||
Total purchase price | $ 4,070 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill, Beginning balance | $ 2,570 | $ 0 | |
Accumulated impairment losses, Beginning balance | 0 | 0 | $ 0 |
Goodwill, impairment losses, Beginning balance | 2,570 | 0 | |
Goodwill acquired during year | 1,259 | 2,570 | |
Impairment losses | 0 | 0 | |
Goodwill, Ending balance | 3,829 | 2,570 | |
Goodwill, impairment losses, Ending balance | $ 3,829 | $ 2,570 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Impairment losses | $ 0 | $ 0 | |
Intangible assets, amortization method | straight-line basis | ||
Amortization expense recognized | $ 413 | $ 149 | $ 0 |
Minimum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 3 years | ||
Maximum [Member] | |||
Goodwill [Line Items] | |||
Intangible assets, estimated useful life | 7 years |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets - Schedule of Components of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Customer relationships | $ 3,006 | $ 2,500 |
Accumulated amortization | (562) | (149) |
Net | $ 2,444 | $ 2,351 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2,016 | $ 524 |
2,017 | 524 |
2,018 | 468 |
2,019 | 357 |
2,020 | $ 357 |
Furniture, Equipment, Softwar63
Furniture, Equipment, Software and Leasehold Improvements - Furniture, Equipment, Software and Leasehold Improvements Summarized by Major Classification (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, software and leasehold improvements | $ 34,301 | $ 35,419 |
Less: Accumulated depreciation and amortization | (19,230) | (20,031) |
Furniture, equipment, software, and leasehold improvements, net of accumulated depreciation and amortization | 15,071 | 15,388 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, software and leasehold improvements | 16,250 | 17,340 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, software and leasehold improvements | 11,206 | 10,776 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, software and leasehold improvements | $ 6,845 | $ 7,303 |
Furniture, Equipment, Softwar64
Furniture, Equipment, Software and Leasehold Improvements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 2,899 | $ 1,841 | $ 1,290 |
Retired Fixed Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Losses related to write-off | $ 24 | $ 26 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Losses related to write-off | $ 0 |
Income Taxes - The Provision (B
Income Taxes - The Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 383 | $ (2,030) | $ 3,010 |
State and local | 168 | 126 | 317 |
Current | 551 | (1,904) | 3,327 |
Deferred | (8,848) | 2,245 | (30,810) |
Effective income tax provision (benefit) | $ (8,297) | $ 341 | $ (27,483) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss, domestic | $ 16,986 | $ 4,574 |
Stock-based and other compensation | 15,579 | 23,105 |
Unrealized losses on investment | 1,739 | 0 |
AMT credit carryforward | 1,661 | 1,666 |
Deferred rent | 1,547 | 462 |
Partnership income | 1,027 | 0 |
Capital loss carryforward | 344 | 5,383 |
Other, net | 226 | 461 |
Total deferred tax assets | 39,109 | 35,651 |
Deferred tax liabilities | ||
Partnership income | 0 | (2,077) |
Deferred expenses | (1,268) | (1,391) |
Net deferred tax assets | 37,841 | 32,183 |
Valuation allowance | (344) | (3,535) |
Net deferred tax asset | $ 37,497 | $ 28,648 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Net deferred tax assets | $ 37,841,000 | $ 32,183,000 | |
Valuation allowance | $ 344,000 | $ 3,535,000 | |
Effective tax rate | 52.70% | 2.00% | (48.00%) |
Liability for uncertain tax positions | $ 0 | $ 0 | |
Interest related to tax uncertainties | 0 | 0 | |
Accrued interest related to uncertain tax | $ 0 | $ 0 | |
Audit tax years | 2011 through 2013 | ||
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 32,513,000 | ||
Pre-tax capital loss carryforwards | 0 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 8,626,000 | ||
Tax benefit related to windfalls | $ 0 | ||
State net operating losses carryovers, Beginning year | 2,028 | ||
Pre-tax capital loss carryforwards | $ 8,836,000 | ||
Capital loss carryforwards expiration dates | 2,017 |
Income Taxes - Provision Attrib
Income Taxes - Provision Attributable to Continuing Operations to the Amount of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision, at statutory rate | $ (5,515) | $ 6,076 | $ 20,045 |
State and local income taxes benefit, net of federal benefit | (907) | 1,322 | 2,693 |
Nondeductible expenses | 295 | 281 | 7 |
Effect of stock-based compensation | 989 | 87 | 82 |
Other, net | (363) | (622) | 1,047 |
Uncertain tax positions | 0 | 0 | 0 |
Valuation allowance | (2,796) | (6,803) | (51,357) |
Effective income tax provision (benefit) | $ (8,297) | $ 341 | $ (27,483) |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (15,758) | $ 17,360 | $ 57,368 | ||||||||
United Kingdom | 0 | 0 | (98) | ||||||||
(Loss) income from continuing operations before income taxes | $ (10,004) | $ (6,309) | $ 4,398 | $ (3,843) | $ (3,938) | $ 3,308 | $ 8,975 | $ 9,015 | $ (15,758) | $ 17,360 | $ 57,270 |
Regulatory Capital Requiremen70
Regulatory Capital Requirements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FBRCM [Member] | ||
Securities Financing Transaction [Line Items] | ||
Net capital | $ 40,869 | $ 60,761 |
Net capital, excess of minimum required capital | 38,793 | 56,994 |
Minimum net capital required | 2,076 | $ 3,767 |
MLV [Member] | ||
Securities Financing Transaction [Line Items] | ||
Net capital | 663 | |
Net capital, excess of minimum required capital | 413 | |
Minimum net capital required | $ 250 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations by Fiscal Year (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum rental commitments, 2016 | $ 5,508 |
Minimum rental commitments, 2017 | 4,767 |
Minimum rental commitments, 2018 | 3,846 |
Minimum rental commitments, 2019 | 3,406 |
Minimum rental commitments, 2020 | 3,488 |
Minimum rental commitments, Thereafter | 17,583 |
Minimum rental commitments, Total | $ 38,598 |
Commitments and Contingencies72
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 29, 2012 | |
Commitments And Contingencies [Line Items] | |||||
Commitments associated with capital leases | $ 0 | ||||
Equipment and office rent expense | 5,228,000 | $ 5,351,000 | $ 5,353,000 | ||
Uncalled capital commitments to be called over next two year | 212,000 | ||||
Brokerage liability | 0 | 0 | |||
Amount of cost related to broker right | 0 | 0 | 0 | ||
Alleged aggregate offering price | $ 151,000,000 | ||||
Value of pool of assets | 3,849,000 | $ 3,000,000 | |||
Compensation and benefits | 77,463,000 | 103,811,000 | 144,720,000 | ||
Stock Compensation Plan [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Compensation and benefits | $ 896,000 | $ 1,267,000 | $ 879,000 | ||
Cliff vesting period | 4 years |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock repurchased | 1,949,517 | 2,380,504 | 2,377,583 |
Weighted average prices | $ 23.20 | $ 26.92 | $ 23.36 |
Repurchases of common stock | $ 45,219,000 | $ 64,094,000 | $ 55,541,000 |
Number of shares authorized to repurchase | 624,123 | ||
Dividends payable | $ 779,000 | ||
Discounted purchase price of market value for Employee Stock Purchase Plan | 85.00% | ||
Compensation expense | $ 177,000 | $ 247,000 | $ 220,000 |
Number of options to purchase stock | 0 | 0 | 0 |
Percentage of compensation expense | 100.00% | ||
Aggregate fair value upon grant date | $ 630,000 | $ 7,317,000 | $ 2,099,000 |
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% | ||
Performance Period Commencing April 1, 2013 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
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 | ||
Period for long-term incentive plan | 10 years | ||
Termination date | Oct. 22, 2023 | ||
Cliff vesting period | 4 years | ||
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 | ||
Cliff vesting period | 5 years | ||
Stock Compensation Plan [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cliff vesting period | 3 years | ||
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, Granted | 372,547 | 374,939 | 827,562 |
Compensation expense | $ 0 | ||
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 compound annual growth rate in performance period used under condition three of performance goal | 9.00% | ||
RSUs [Member] | Minimum [Member] | Performance Period Commencing January 1, 2015 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of compound annual growth rate in performance period used under condition three of performance goal | 6.00% | ||
Open Market Transaction [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock repurchased | 1,178,607 | ||
Weighted average prices | $ 25.76 | ||
Repurchases of common stock | $ 30,362,000 | ||
Dutch Auction Tender Offer [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock repurchased | 1,201,897 | ||
Weighted average prices | $ 28.06 | ||
Repurchases of common stock | $ 33,732,000 | ||
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 | 138,000 | 71,000 | 258,000 |
Weighted average prices | $ 22.56 | $ 25.68 | $ 14.79 |
Repurchases of common stock | $ 3,113,000 | $ 1,823,000 | $ 3,817,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Cash Dividends Declared on Common Stock (Detail) - $ / shares | Oct. 20, 2015 | Jun. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends Payable [Line Items] | |||||
Date declared | Feb. 10, 2016 | ||||
Record date | Feb. 22, 2016 | ||||
Payable date | Mar. 4, 2016 | ||||
Cash dividends declared per common share | $ 0.40 | $ 0 | $ 0 | ||
Installment 1-FY 2015 [Member] | |||||
Dividends Payable [Line Items] | |||||
Date declared | Oct. 20, 2015 | ||||
Record date | Nov. 2, 2015 | ||||
Payable date | Nov. 27, 2015 | ||||
Cash dividends declared per common share | $ 0.20 | ||||
Installment 2-FY 2015 [Member] | |||||
Dividends Payable [Line Items] | |||||
Date declared | Jun. 16, 2015 | ||||
Record date | Jul. 31, 2015 | ||||
Payable date | Aug. 28, 2015 | ||||
Cash dividends declared per common share | $ 0.20 |
Shareholders' Equity - Compensa
Shareholders' Equity - Compensation Expense Related to Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 7 | $ (44) | $ 484 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 381 | 296 | 146 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 6,627 | $ 8,897 | $ 7,589 |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Compensation Related to Awards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 12,525 |
Weighted average vesting period | 1 year |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 244 |
Unvested awards | shares | 22,191 |
Weighted average vesting period | 6 months 11 days |
RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 2,244 |
Unvested awards | shares | 1,060,492 |
Weighted average vesting period | 3 months 15 days |
Performance Condition RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 431 |
Unvested awards | shares | 375,000 |
Weighted average vesting period | 3 months |
Shareholders' Equity - Unreco77
Shareholders' Equity - Unrecognized Compensation Related to Awards (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total unvested awards include performance conditions | shares | 882,663 |
Unrecognized compensation | $ | $ 12,525 |
Weighted average vesting period | 1 year |
Percentage of compensation expense | 100.00% |
Shareholders' Equity - Summar78
Shareholders' Equity - Summary of Option Activity under the FBR & Co. Long Term Incentive Plan (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of Shares, Beginning Balance | 990,101 | 1,066,803 | 1,288,027 | |
Number of Shares, Granted | 0 | 0 | 0 | |
Number of Shares, Forfeitures/Expirations | (80,651) | (13,334) | (102,802) | |
Number of Shares, Option Exercised | (448,657) | (63,368) | (118,422) | |
Number of Shares, Ending Balance | 460,793 | 990,101 | 1,066,803 | 1,288,027 |
Options Exercisable, Number of Shares | 460,793 | |||
Weighted-average Exercise Prices, Beginning Balance | $ 21.92 | $ 21.63 | $ 21.72 | |
Weighted-average Exercise Prices, Granted | 0 | 0 | 0 | |
Weighted-average Exercise Prices, Forfeitures/Expirations | 26.79 | 22.44 | 24.14 | |
Weighted-average Exercise Prices, Option Exercised | 21.49 | 16.87 | 20.34 | |
Weighted-average Exercise Prices, Ending Balance | 21.49 | $ 21.92 | $ 21.63 | $ 21.72 |
Options Exercisable, Weighted-average Exercise Prices | $ 21.49 | |||
Weighted Average Remaining Contractual Life | 1 year 11 months 27 days | 29 days | 1 month 17 days | 2 years 1 month 13 days |
Options Exercisable, Weighted-average Remaining Contractual Life | 1 year 11 months 27 days |
Shareholders' Equity - Summar79
Shareholders' Equity - Summary of Unvested Restricted Stock Awards and Restricted Stock Units (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares, Ending Balance | 882,663 | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares, Beginning Balance | 12,218 | 10,421 | 6,252 | |
Number of Shares, Granted | 22,191 | 12,218 | 10,421 | |
Number of Shares, Vestings | (12,218) | (10,421) | (6,252) | |
Number of Shares, Forfeitures | 0 | 0 | 0 | |
Number of Shares, Ending Balance | 22,191 | 12,218 | 10,421 | 6,252 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 26.19 | $ 24.23 | $ 25.04 | |
Weighted-average Grant-date Fair Value, Granted | 22.02 | 26.19 | 24.23 | |
Weighted-average Grant-date Fair Value, Vestings | 26.19 | 24.23 | 26.13 | |
Weighted-average Grant-date Fair Value, Forfeitures | 0 | 0 | 0 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 22.02 | $ 26.19 | $ 24.23 | $ 25.04 |
Weighted-average Remaining Vested Period | 6 months 11 days | 5 months 1 day | 5 months 5 days | 1 month 24 days |
Weighted-average Remaining Vested Period, Granted | 6 months 11 days | 5 months 1 day | 5 months 5 days | |
RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares, Beginning Balance | 1,988,912 | 1,903,334 | 1,667,411 | |
Number of Shares, Granted | 372,547 | 374,939 | 827,562 | |
Number of Shares, Vestings | (328,415) | (162,993) | (501,307) | |
Number of Shares, Forfeitures | (89,889) | (126,368) | (90,332) | |
Number of Shares, Ending Balance | 1,943,155 | 1,988,912 | 1,903,334 | 1,667,411 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 17.06 | $ 15.69 | $ 15.72 | |
Weighted-average Grant-date Fair Value, Granted | 23.44 | 24.71 | 18.94 | |
Weighted-average Grant-date Fair Value, Vestings | 17.29 | 18.81 | 22.11 | |
Weighted-average Grant-date Fair Value, Forfeitures | 19.03 | 16.82 | 14.58 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 18.06 | $ 17.06 | $ 15.69 | $ 15.72 |
Weighted-average Remaining Vested Period | 7 months 13 days | 1 year 2 months 1 day | 1 year 10 months 17 days | 2 years 1 month 6 days |
Shareholders' Equity - Summar80
Shareholders' Equity - Summary of Restricted Stock and Restricted Stock Unit Awards Held in the Irrevocable Trust (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of Shares, Ending Balance | 882,663 | |||
Restricted Stock [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of Shares, Beginning Balance | 12,218 | 10,421 | 6,252 | |
Number of Shares, Granted | 22,191 | 12,218 | 10,421 | |
Number of Shares, Vestings | (12,218) | (10,421) | (6,252) | |
Number of Shares, Ending Balance | 22,191 | 12,218 | 10,421 | 6,252 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 26.19 | $ 24.23 | $ 25.04 | |
Weighted-average Grant-date Fair Value, Granted | 22.02 | 26.19 | 24.23 | |
Weighted-average Grant-date Fair Value, Vestings | 26.19 | 24.23 | 26.13 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 22.02 | $ 26.19 | $ 24.23 | $ 25.04 |
Weighted-average Remaining Vested Period | 6 months 11 days | 5 months 1 day | 5 months 5 days | 1 month 24 days |
Restricted Stock [Member] | Deferred Compensation Awards [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of Shares, Beginning Balance | 277 | 1,502 | 5,901 | |
Number of Shares, Granted | 0 | 0 | 0 | |
Number of Shares, Vestings | 0 | (1,225) | (4,399) | |
Number of Shares, Ending Balance | 277 | 277 | 1,502 | 5,901 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 9.56 | $ 13.51 | $ 19.60 | |
Weighted-average Grant-date Fair Value, Granted | 0 | 0 | 0 | |
Weighted-average Grant-date Fair Value, Vestings | 0 | 14.40 | 16.15 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 9.56 | $ 9.56 | $ 13.51 | $ 19.60 |
Weighted-average Remaining Vested Period | 1 month 10 days | 1 year 1 month 6 days | 5 months 16 days | 7 months 21 days |
RSUs [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of Shares, Beginning Balance | 1,988,912 | 1,903,334 | 1,667,411 | |
Number of Shares, Granted | 372,547 | 374,939 | 827,562 | |
Number of Shares, Vestings | (328,415) | (162,993) | (501,307) | |
Number of Shares, Ending Balance | 1,943,155 | 1,988,912 | 1,903,334 | 1,667,411 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 17.06 | $ 15.69 | $ 15.72 | |
Weighted-average Grant-date Fair Value, Granted | 23.44 | 24.71 | 18.94 | |
Weighted-average Grant-date Fair Value, Vestings | 17.29 | 18.81 | 22.11 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 18.06 | $ 17.06 | $ 15.69 | $ 15.72 |
Weighted-average Remaining Vested Period | 7 months 13 days | 1 year 2 months 1 day | 1 year 10 months 17 days | 2 years 1 month 6 days |
RSUs [Member] | Deferred Compensation Awards [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of Shares, Beginning Balance | 495,470 | 235,364 | 185,340 | |
Number of Shares, Granted | 26,549 | 294,843 | 127,977 | |
Number of Shares, Vestings | (5,470) | (34,737) | (77,953) | |
Number of Shares, Ending Balance | 516,549 | 495,470 | 235,364 | 185,340 |
Weighted-average Grant-date Fair Value, Beginning Balance | $ 20.79 | $ 18.09 | $ 18.68 | |
Weighted-average Grant-date Fair Value, Granted | 23.73 | 24.82 | 16.40 | |
Weighted-average Grant-date Fair Value, Vestings | 9.56 | 15.43 | 19.45 | |
Weighted-average Grant-date Fair Value, Ending Balance | $ 21.10 | $ 20.79 | $ 18.09 | $ 18.68 |
Weighted-average Remaining Vested Period | 9 months 15 days | 1 year 8 months 5 days | 1 year 11 months 1 day | 1 year 5 months 23 days |
Net (Loss)Income Per Share - Co
Net (Loss)Income Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average shares outstanding, Basic: | |||||||||||
Common stock, Basic | 8,069 | 10,283 | 11,963 | ||||||||
Stock options, unvested restricted stock and RSUs, Basic | 0 | 0 | 0 | ||||||||
Weighted average common and common equivalent shares outstanding, Basic | 8,069 | 10,283 | 11,963 | ||||||||
Net (loss) income applicable to common stock, Basic | $ (7,461) | $ 17,019 | $ 92,912 | ||||||||
Net (loss) income per common share, Basic | $ (0.59) | $ (0.43) | $ 0.36 | $ (0.29) | $ 0.10 | $ 0.34 | $ 0.65 | $ 0.51 | $ (0.92) | $ 1.66 | $ 7.77 |
Weighted average shares outstanding, Diluted: | |||||||||||
Common stock, Diluted | 8,069 | 10,283 | 11,963 | ||||||||
Stock options, unvested restricted stock and RSUs, Diluted | 0 | 1,182 | 997 | ||||||||
Weighted average common and common equivalent shares outstanding, Diluted | 8,069 | 11,465 | 12,960 | ||||||||
Net (loss) income applicable to common stock, Diluted | $ (7,461) | $ 17,019 | $ 92,912 | ||||||||
Net (loss) income per common share, Diluted | $ (0.59) | $ (0.43) | $ 0.32 | $ (0.29) | $ 0.09 | $ 0.31 | $ 0.58 | $ 0.46 | $ (0.92) | $ 1.48 | $ 7.17 |
Net (Loss) Income Per Share - N
Net (Loss) Income Per Share - Number of Antidilutive Stock Options, Unvested Restricted Stock and RSUs Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards | 2,458 | 1,844 | 2,016 |
Stock Options-Employees and Directors [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards | 461 | 731 | 840 |
Stock Options-Non-Employee [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards | 32 | 27 | 32 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards | 22 | 12 | 8 |
RSUs [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock-based awards | 1,943 | 1,074 | 1,136 |
Financial Instruments with Of83
Financial Instruments with Off-Balance-Sheet Risk and Credit Risk - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Risks And Uncertainties [Abstract] | |||
Liabilities related to right | $ 0 | $ 0 | |
Significant cost related to right | $ 0 | $ 0 | $ 0 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||||
Professional fees | $ 1,000 | |||||
Minimum percentage of voting right in subsidiary to get advisory fee | 50.00% | |||||
Establishing terms for professional fees | In June 2010, the Company and Crestview agreed to amend the professional services agreement to allow Crestview the ability to elect to receive a portion of their fee in restricted stock and/or options to purchase shares of the Company’s common stock. If elected, stock options would be issued with a strike price equal to the prevailing market price per share as of the grant date and with an expiration of 4 years. | |||||
Shares issued, option exercised | 448,657 | 63,368 | 118,422 | |||
Shares repurchase | 1,949,517 | 2,380,504 | 2,377,583 | |||
Repurchases of common stock | $ 45,219 | $ 64,094 | $ 55,541 | |||
Crestview Company [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued, option exercised | 87,332 | 54,369 | ||||
Shares repurchase | 87,332 | 54,369 | ||||
Shares repurchase, other | 649,449 | 670,631 | ||||
Average exercise price of shares | $ 12.02 | $ 15.85 | $ 12.02 | |||
Aggregate cost of shares | $ 1,050 | $ 862 | ||||
Price per common shares repurchased | $ 25.75 | $ 26.25 | ||||
Repurchases of common stock | $ 18,974 | $ 19,031 | ||||
Crestview Company [Member] | Third Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock issued | 32,432 | |||||
Common stock value | $ 270 | |||||
Professional Services Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expense associated with professional services agreement | $ 905 | |||||
Employee Stock Option [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options expiration period | 4 years | |||||
MLV [Member] | Other Receivables [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Employee loans outstanding | $ 3,485 | $ 143 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employee contribution plan, employers matching contribution, vesting percentage | 100.00% | ||
Employee benefit plan, contributions by employer | $ 0 | $ 717 | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Asset Management Operations Reflected in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Revenues | $ 0 | ||
Gain on sale of assets | $ 0 | $ 0 | 8,944 |
Expenses | 170 | ||
Income from discontinued operations before income taxes | 8,774 | ||
Income tax provision | 615 | ||
Income from discontinued operations, net of taxes | $ 0 | $ 0 | $ 8,159 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Net income from discontinued operations | $ 0 | $ 0 | $ 8,159 |
Proceeds from sale of assets under asset management operation | $ 0 | $ 0 | $ 19,294 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Face value amount | $ 75,000,000 | $ 75,000,000 |
Securities borrowed | 685,037,000 | 594,674,000 |
Securities loaned | $ 687,443,000 | 595,717,000 |
Short-Sale [Member] | ||
Segment Reporting Information [Line Items] | ||
Face value amount | $ 75,000,000 | |
Coupon rate of treasury securities | 4.625% | 7.25% |
Short-Sale [Member] | Principal Investing [Member] | ||
Segment Reporting Information [Line Items] | ||
Face value amount | $ 75,000,000 | $ 75,000,000 |
Coupon rate of treasury securities | 7.25% | 7.25% |
Segment Information - Summary o
Segment Information - Summary of Financial Information of Company's Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues, net of interest expense: | |||||||||||
Investment banking | $ 71,091 | $ 115,255 | $ 196,213 | ||||||||
Institutional brokerage | 45,442 | 56,182 | 53,738 | ||||||||
Net investment income | 5,433 | 17,774 | 6,920 | ||||||||
Interest | 31,774 | 13,067 | 1,790 | ||||||||
Dividends and other | 1,692 | 1,030 | 1,160 | ||||||||
Total revenues | 155,432 | 203,308 | 259,821 | ||||||||
Interest expense | 35,037 | 21,183 | 0 | ||||||||
Revenues, net of interest expense | $ 23,464 | $ 25,580 | $ 44,256 | $ 27,095 | $ 28,572 | $ 42,097 | $ 57,098 | $ 54,358 | 120,395 | 182,125 | 259,821 |
Operating expenses: | |||||||||||
Variable | 35,688 | 59,816 | 104,934 | ||||||||
Fixed | 100,465 | 104,949 | 97,617 | ||||||||
Total non-interest expenses | 136,153 | 164,765 | 202,551 | ||||||||
(Loss) income from continuing operations before income taxes | (15,758) | 17,360 | 57,270 | ||||||||
Compensation and benefits: | |||||||||||
Variable | 18,889 | 42,713 | 90,746 | ||||||||
Fixed | 58,574 | 61,098 | 53,974 | ||||||||
Total | 77,463 | 103,811 | 144,720 | ||||||||
Total assets | 933,416 | 1,035,097 | 933,416 | 1,035,097 | 410,572 | ||||||
Capital Markets [Member] | |||||||||||
Revenues, net of interest expense: | |||||||||||
Investment banking | 71,091 | 115,255 | 196,213 | ||||||||
Institutional brokerage | 45,442 | 56,182 | 53,738 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Interest | 31,745 | 12,945 | 1,050 | ||||||||
Dividends and other | 1,103 | 549 | 432 | ||||||||
Total revenues | 149,381 | 184,931 | 251,433 | ||||||||
Interest expense | 23,877 | 9,505 | 0 | ||||||||
Revenues, net of interest expense | 125,504 | 175,426 | 251,433 | ||||||||
Operating expenses: | |||||||||||
Variable | 35,651 | 59,500 | 103,755 | ||||||||
Fixed | 98,331 | 102,426 | 96,121 | ||||||||
Total non-interest expenses | 133,982 | 161,926 | 199,876 | ||||||||
(Loss) income from continuing operations before income taxes | (8,478) | 13,500 | 51,557 | ||||||||
Compensation and benefits: | |||||||||||
Variable | 18,889 | 42,408 | 89,574 | ||||||||
Fixed | 57,165 | 59,639 | 53,013 | ||||||||
Total | 76,054 | 102,047 | 142,587 | ||||||||
Total assets | 834,205 | 830,938 | 834,205 | 830,938 | 308,870 | ||||||
Principal Investing [Member] | |||||||||||
Revenues, net of interest expense: | |||||||||||
Investment banking | 0 | 0 | 0 | ||||||||
Institutional brokerage | 0 | 0 | 0 | ||||||||
Net investment income | 5,433 | 17,774 | 6,920 | ||||||||
Interest | 29 | 122 | 740 | ||||||||
Dividends and other | 589 | 481 | 728 | ||||||||
Total revenues | 6,051 | 18,377 | 8,388 | ||||||||
Interest expense | 11,160 | 11,678 | 0 | ||||||||
Revenues, net of interest expense | (5,109) | 6,699 | 8,388 | ||||||||
Operating expenses: | |||||||||||
Variable | 37 | 316 | 1,179 | ||||||||
Fixed | 2,134 | 2,523 | 1,496 | ||||||||
Total non-interest expenses | 2,171 | 2,839 | 2,675 | ||||||||
(Loss) income from continuing operations before income taxes | (7,280) | 3,860 | 5,713 | ||||||||
Compensation and benefits: | |||||||||||
Variable | 0 | 305 | 1,172 | ||||||||
Fixed | 1,409 | 1,459 | 961 | ||||||||
Total | 1,409 | 1,764 | 2,133 | ||||||||
Total assets | $ 99,211 | $ 204,159 | $ 99,211 | $ 204,159 | $ 101,702 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 10, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Dividends payable, date declared | Feb. 10, 2016 | |||
Cash dividends declared per common share | $ 0.40 | $ 0 | $ 0 | |
Dividends payment date | Mar. 4, 2016 | |||
Dividends payable, date of record | Feb. 22, 2016 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares authorized to be repurchased | 1,000,000 | |||
Cash dividends declared per common share | $ 0.20 |
Quarterly Data - Details of Qua
Quarterly Data - Details of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues, net of interest expense | $ 23,464 | $ 25,580 | $ 44,256 | $ 27,095 | $ 28,572 | $ 42,097 | $ 57,098 | $ 54,358 | $ 120,395 | $ 182,125 | $ 259,821 |
Net (loss) income before income taxes | (10,004) | (6,309) | 4,398 | (3,843) | (3,938) | 3,308 | 8,975 | 9,015 | (15,758) | 17,360 | 57,270 |
Net (loss) income | $ (4,410) | $ (3,428) | $ 2,899 | $ (2,522) | $ 932 | $ 3,501 | $ 6,976 | $ 5,610 | $ (7,461) | $ 17,019 | $ 92,912 |
Basic (loss) earnings per share | $ (0.59) | $ (0.43) | $ 0.36 | $ (0.29) | $ 0.10 | $ 0.34 | $ 0.65 | $ 0.51 | $ (0.92) | $ 1.66 | $ 7.77 |
Diluted (loss) earnings per share | $ (0.59) | $ (0.43) | $ 0.32 | $ (0.29) | $ 0.09 | $ 0.31 | $ 0.58 | $ 0.46 | $ (0.92) | $ 1.48 | $ 7.17 |