Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FBRC | |
Entity Registrant Name | FBR & CO. | |
Entity Central Index Key | 1,371,446 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,926,024 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 51,347 | $ 70,067 |
Receivables: | ||
Securities borrowed | 969,006 | 685,037 |
Due from brokers, dealers and clearing organizations | 5,922 | 5,513 |
Customers | 4,422 | 1,429 |
Other | 3,188 | 5,895 |
Financial instruments owned, at fair value | 47,571 | 94,923 |
Other investments, at cost | 6,539 | 6,539 |
Goodwill and intangible assets | 6,011 | 6,273 |
Furniture, equipment, software, and leasehold improvements, net of accumulated depreciation and amortization | 13,865 | 15,071 |
Deferred tax assets, net of valuation allowance | 45,642 | 37,497 |
Prepaid expenses and other assets | 6,027 | 5,172 |
Total assets | 1,159,540 | 933,416 |
Liabilities | ||
Securities loaned | 968,681 | 687,443 |
Financial instruments sold, not yet purchased, at fair value | 0 | 1,934 |
Accrued compensation and benefits | 2,838 | 13,325 |
Accounts payable, accrued expenses and other liabilities | 15,304 | 19,947 |
Total liabilities | 986,823 | 722,649 |
Commitments and Contingencies (Note 8) | ||
Shareholders’ equity | ||
Preferred Stock, $0.001 par value 100,000,000 authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 300,000,000 shares authorized, 6,926,024 and 6,795,342 shares issued and outstanding, respectively | 7 | 7 |
Additional paid-in capital | 254,963 | 259,011 |
Restricted stock units | 15,076 | 35,929 |
Accumulated deficit | (97,329) | (84,180) |
Total shareholders’ equity | 172,717 | 210,767 |
Total liabilities and shareholders’ equity | $ 1,159,540 | $ 933,416 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 6,926,024 | 6,795,342 |
Common stock, shares outstanding | 6,926,024 | 6,795,342 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investment banking: | ||||
Capital raising | $ 6,796 | $ 27,827 | $ 9,326 | $ 37,111 |
Advisory | 1,838 | 1,901 | 3,458 | 5,292 |
Institutional brokerage | 9,550 | 12,441 | 21,734 | 24,684 |
Net investment income (loss) | 479 | 3,679 | (439) | 7,029 |
Interest | 7,382 | 8,008 | 15,746 | 14,993 |
Dividends and other | 189 | 192 | 312 | 463 |
Total revenues | 26,234 | 54,048 | 50,137 | 89,572 |
Interest expense | 5,347 | 9,792 | 11,350 | 18,221 |
Revenues, net of interest expense | 20,887 | 44,256 | 38,787 | 71,351 |
Non-interest expenses: | ||||
Compensation and benefits | 16,692 | 24,275 | 34,687 | 42,230 |
Occupancy and equipment | 3,178 | 3,103 | 6,511 | 6,161 |
Communications | 2,214 | 2,576 | 4,768 | 5,587 |
Professional services | 2,678 | 4,439 | 4,298 | 6,812 |
Business development | 2,326 | 2,642 | 3,940 | 4,530 |
Clearing and brokerage fees | 1,271 | 1,336 | 2,555 | 2,559 |
Other operating expenses | 1,718 | 1,487 | 3,303 | 2,917 |
Total non-interest expenses | 30,077 | 39,858 | 60,062 | 70,796 |
(Loss) income before income taxes | (9,190) | 4,398 | (21,275) | 555 |
Income tax (benefit) provision | (982) | 1,499 | (7,613) | 178 |
Net (loss) income | $ (8,208) | $ 2,899 | $ (13,662) | $ 377 |
Loss per share: | ||||
Basic (loss) income per share | $ (1.08) | $ 0.36 | $ (1.80) | $ 0.04 |
Diluted (loss) income per share | $ (1.08) | $ 0.32 | $ (1.80) | $ 0.04 |
Basic weighted average shares outstanding (in thousands) | 7,600 | 8,084 | 7,584 | 8,453 |
Diluted weighted average shares outstanding (in thousands) | 7,600 | 9,159 | 7,584 | 9,634 |
Cash dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (8,208) | $ 2,899 | $ (13,662) | $ 377 |
Other comprehensive income, net of tax: | ||||
Change in unrealized gain on available-for-sale investment securities, net of taxes of $0, $0, $0 and $28, respectively | 0 | 0 | 0 | (44) |
Comprehensive (loss) income | $ (8,208) | $ 2,899 | $ (13,662) | $ 333 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in unrealized gain on available-for-sale investment securities, taxes | $ 0 | $ 0 | $ 0 | $ 28 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Restricted Stock Units [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2014 | $ 260,406 | $ 8 | $ 302,720 | $ 34,353 | $ 44 | $ (76,719) |
Balance, Shares at Dec. 31, 2014 | 8,389 | |||||
Net loss | (7,461) | $ 0 | 0 | 0 | 0 | (7,461) |
Common stock dividends | (3,710) | 0 | (3,710) | 0 | 0 | 0 |
Issuance of common stock, net of forfeitures | 2,468 | $ 1 | 8,147 | (5,680) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 494 | |||||
Repurchase of common stock | (45,219) | $ (2) | (45,217) | 0 | 0 | 0 |
Repurchase of common stock, shares | (1,950) | |||||
Repurchase of common stock for employee tax withholding | (3,113) | $ 0 | (3,113) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (138) | |||||
Stock compensation expense for options granted to purchase common stock | 184 | $ 0 | 184 | 0 | 0 | 0 |
Issuance of restricted stock units | 7,256 | 0 | 0 | 7,256 | 0 | 0 |
Change in unrealized gain on available-for-sale investment securities, net of taxes | (44) | 0 | 0 | 0 | (44) | 0 |
Balance at Dec. 31, 2015 | 210,767 | $ 7 | 259,011 | 35,929 | 0 | (84,180) |
Balance, Shares at Dec. 31, 2015 | 6,795 | |||||
Net loss | (13,662) | $ 0 | 0 | 0 | 0 | (13,662) |
Common stock dividends | (3,229) | 0 | (3,229) | 0 | 0 | 0 |
Issuance of common stock, net of forfeitures | 643 | $ 0 | 20,989 | (20,346) | 0 | 0 |
Issuance of common stock, net of forfeitures, shares | 1,397 | |||||
Repurchase of common stock | (12,719) | $ 0 | (12,719) | 0 | 0 | 0 |
Repurchase of common stock, shares | (728) | |||||
Repurchase of common stock for employee tax withholding | (9,158) | $ 0 | (9,158) | 0 | 0 | 0 |
Repurchase of common stock for employee tax withholding, shares | (538) | |||||
Stock compensation expense for options granted to purchase common stock | 69 | $ 0 | 69 | 0 | 0 | 0 |
Issuance of restricted stock units | (507) | 0 | 0 | (507) | 0 | 0 |
Cumulative adjustment for change in accounting principle | 513 | 0 | 0 | 0 | 0 | 513 |
Balance at Jun. 30, 2016 | $ 172,717 | $ 7 | $ 254,963 | $ 15,076 | $ 0 | $ (97,329) |
Balance, Shares at Jun. 30, 2016 | 6,926 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net (loss) income | $ (13,662) | $ 377 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 1,836 | 1,580 |
Deferred income taxes | (7,632) | 178 |
Net investment loss (income) | 439 | (7,029) |
Stock compensation | (139) | 3,353 |
Other | 294 | 28 |
Receivables: | ||
Securities borrowed | (283,969) | (88,596) |
Brokers, dealers and clearing organizations | (409) | (8,518) |
Customers | (3,118) | 314 |
Affiliates | (351) | 138 |
Interest, dividends and other | 1,712 | (718) |
Trading securities | 6,783 | 36,741 |
Prepaid expenses and other assets | (855) | 976 |
Changes in operating liabilities: | ||
Securities loaned | 281,238 | 89,550 |
Trading account financial instruments sold, not yet purchased | (921) | (29,788) |
Accounts payable, accrued expenses and other liabilities | (3,108) | 51 |
Accrued compensation and benefits | (8,967) | (13,273) |
Net cash used in operating activities | (30,829) | (14,636) |
Cash flows from investing activities | ||
Proceeds from sales of and distributions from investments | 40,124 | 14,107 |
Settlement of financial instruments sold, not yet purchased | (1,134) | 0 |
Purchase of securities lending business | (1,332) | (1,101) |
Purchases of furniture, equipment, software, and leasehold improvements | (471) | (1,175) |
Due from brokers, dealers and clearing organizations | 0 | (220,942) |
Financial instruments sold, not yet purchased | 0 | 215,074 |
Purchases of investment securities and other investments | 0 | (818) |
Net cash provided by investing activities | 37,187 | 5,145 |
Cash flows from financing activities | ||
Repurchases of common stock | (21,877) | (28,936) |
Proceeds from sales of common stock | 210 | 635 |
Dividends paid | (3,411) | 0 |
Net cash used in financing activities | (25,078) | (28,301) |
Cash and cash equivalents | ||
Net decrease in cash and cash equivalents | (18,720) | (37,792) |
Cash and cash equivalents, beginning of period | 70,067 | 108,962 |
Cash and cash equivalents, end of period | 51,347 | 71,170 |
Supplemental cash flows disclosures | ||
Interest payments | 11,350 | 18,426 |
Income tax payments | 155 | 19 |
Non-cash investing and financing activities | ||
Dividends payable | $ 461 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation: The consolidated financial statements of FBR & Co. and subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. Therefore, they do not include all information required by accounting principles generally accepted in the United States of America for complete annual financial statements. The interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts in order to conform with the current period presentation. The results of operations for the three and six months ended June 30, 2016 and 2015 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (“2015 Form 10-K”). 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 revised its segment reporting structure. Beginning with the first quarter of 2016, the Company’s investment activities are included together with its other capital markets activities and not as a separate reportable segment. In making this change the Company considered the diminished level of its investment balances, the relative insignificance of its investment-related revenues compared to total revenues and the nature of the financial information used by the Company’s Chief Operating Decision Maker (“CODM”). In this case, as a result of changes in capital allocation, the Company’s investment assets have decreased to represent less than 5% of total assets in 2016. Investment-related revenues are not a significant element of the Company’s total revenues ranging from 3% to 4% of the Company’s total revenues net of interest expense over the past three years. In addition to the above, while the Company’s CODM reviews investment-related returns, there are no specific resource or overhead allocations made to investment activities separate from the Company as a whole. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although the Company bases its estimates and assumptions on historical experience and market information (when available) and on various other factors that it believes to be reasonable under the circumstances, management exercises significant judgment in the final determination of its estimates. Actual results may differ from those estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. Generally Accepted Accounting Principles (“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 adopted ASU 2015-05 in the first quarter of 2016 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 the Company is still evaluating the impact of its pending adoption of the new standard on its consolidated financial statements, it expects that upon adoption it will recognize ROU assets and lease liabilities and that the amounts could be material. In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” (“ASU 2016-09”). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. All tax benefits deficiencies related to share-based payments will be recognized and recorded through the statement of operations for all awards settled or expiring after the adoption of ASU 2016-09. Currently, tax benefits in excess of compensation costs ("windfalls") are recorded in equity, and tax deficiencies ("shortfalls") are recorded in equity to the extent of previous windfalls and then to the statement of operations. ASU 2016-09 will also require, either prospectively or retrospectively, that all tax-related cash flows resulting from share-based payments be reported as operating activities on the statement of cash flows, a change from the current requirement to present windfall tax benefits as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Additionally, ASU 2016-09 will allow entities to make an accounting policy election for the impact of most types of forfeitures on the recognition of expense for share-based payment awards by allowing the forfeitures to be either estimated, as is currently required, or recognized when they actually occur. ASU 2016-09 will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. The Company adopted ASU 2016-09 in the first quarter of 2016 resulting in the recording of a cumulative adjustment to accumulated In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This guidance will be effective for reporting periods beginning after December 15, 2019 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements. |
Financial Instruments and Long-
Financial Instruments and Long-Term Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Financial Instruments and Long-Term Investments | 2. Financial Instruments and Long-Term Investments: Fair Value of Financial Instruments The FASB’s ASC 820 “Fair Value Measurement” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) as described below: Level 1 Inputs — Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company; Level 2 Inputs — Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; Level 3 Inputs — Unobservable inputs for the asset or liability, including significant assumptions of the Company and other market participants. The Company determines fair values for the following assets and liabilities: Equity securities, listed options and warrants —The Company classifies marketable equity securities and listed options within Level 1 of the fair value hierarchy because quoted market prices from an exchange are used to value these securities. Non-public equity securities, which primarily include securities where the Company acted as a placement agent in an offering of equity securities and where the Company facilitates over-the-counter trading activity for the securities, are classified within Level 3 of the fair value hierarchy. In determining the fair value of these securities, the Company considers enterprise value and analyzes various financial, performance and market factors to estimate the value, including where applicable, over-the-counter market trading activity. Non-exchange traded warrants to purchase equity securities are classified as Level 3 as a Black-Scholes valuation model is used to value these securities. U.S. government securities, convertible and fixed income debt instruments —The Company classifies U.S. government securities, including highly liquid U.S. Treasury securities within Level 1 as quoted prices are used to value these securities. Convertible and fixed income debt instruments are classified within Level 2 of the fair value hierarchy as they are valued using quoted market prices provided by a broker or dealer, or alternative pricing services that provide reasonable levels of price transparency. The Company primarily uses price quotes from one independent broker-dealer who makes markets in or is a specialist with expertise in the valuation of these financial instruments. The Company reviews broker or pricing service quotes it receives to assess the reasonableness of the values provided; such reviews include comparison to internal pricing models and, when available, prices observed for recently executed market transactions of comparable size. Based on this assessment, at each reporting date the Company will adjust price quotes it receives if such an adjustment is determined to be appropriate. Investment Funds —The Company invests in proprietary investment funds that are valued at net asset value (“NAV”) determined by the fund administrator. 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 ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” (“ASU 2015-07”) in 2015, these investment funds are no longer categorized within the fair value hierarchy. Fair Value Hierarchy The following tables set forth, by level within the fair value hierarchy, financial instruments and long-term investments accounted for under ASC 820 as of June 30, 2016 and December 31, 2015. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Items Measured at Fair Value on a Recurring Basis June 30, 2016 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiaries: Marketable and non-public equity securities $ 7,252 $ 250 $ — $ 7,002 Convertible and fixed income debt instruments — — — — 7,252 250 — 7,002 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 8,341 — — 8,341 Warrants 164 — — 164 8,505 — — 8,505 Total 15,757 $ 250 $ — $ 15,507 Investment funds valued at net asset value (1) 31,814 Total financial instruments owned, at fair value $ 47,571 (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 June 30, 2016, financial assets measured and reported at fair value on a recurring basis and classified within Level 3 were $15,507, or 1.3% 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 June 30, 2016: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 15,343 Over-the-counter trading activity $0.45 - $14.10/share $11.11 Black-Scholes $ 164 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 1.1% 1.1% For those non-public equity securities valued using a market approach, adverse industry market conditions or events experienced by the underlying entities could result in lower over-the-counter trading prices for the securities. Such lower trading prices would result in a decline in the estimated fair value of these assets. For warrants valued using Black-Scholes, adverse industry market conditions or events experienced by the issuer could result in a lower trading price for the underlying equity security and therefore a lower value of these warrants. A reduction in the estimated volatility would also result in a lower value of the warrants. The Company assessed the reasonableness of the fair values of the non-public equity securities noted above based on its consideration of available financial data related to these issuers as well as an assessment of the nature of any over-the-counter trading activity during the period. The Company assessed the reasonableness of the fair value of the non-exchange traded warrants valued using a Black-Scholes valuation based on its consideration of the fair values of comparable exchange-traded options. December 31, 2015 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiaries: 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 $ 16,069 Over-the-counter trading activity $0.44 - $14.10/share $11.13 Black-Scholes $ 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. Level 3 Gains and Losses The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the three months ended June 30, 2016 and 2015. As of June 30, 2016 and 2015, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. Three Months Ended June 30, 2016 2015 Trading Securities Trading Securities Beginning balance, April 1, $ 15,100 $ 2,856 Total net losses (realized/unrealized) included in earnings (62 ) 538 Purchases 13,922 25,677 Sales/distributions (13,453 ) (19,823 ) Ending balance, June 30, $ 15,507 $ 9,248 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 $ (115 ) $ 673 There were no transfers into or out of Level 1, 2, and 3 during the three months ended June 30, 2016 or 2015. The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the six months ended June 30, 2016 and 2015. Six Months Ended June 30, 2016 2015 Trading Securities Trading Securities Beginning balance, January 1, $ 16,505 $ 3,188 Total net losses (realized/unrealized) included in earnings (322 ) 235 Purchases 25,062 39,097 Sales/Distributions (25,738 ) (33,243 ) Transfers out of Level 3 — (29 ) Ending balance, June 30, $ 15,507 $ 9,248 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 $ (116 ) $ 370 There were no transfers into or out of Level 1, 2, and 3 during the six months ended June 30, 2016. During the six months ended June 30, 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. Gains and losses from Level 3 financial assets that are measured at fair value on a recurring basis, that are included in earnings for the three and six months ended June 30, 2016 and 2015, are reported in the following line descriptions on the Company’s consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Total gains and losses included in earnings for the period: Institutional brokerage $ (37 ) $ 136 $ 18 $ 137 Net investment (loss) gain (25 ) 402 (340 ) 98 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage $ (90 ) $ 271 $ 81 $ 272 Net investment (loss) gain (25 ) 402 (197 ) 98 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 three and six months ended June 30, 2016 and 2015, except for the impact of the scheduled payment of contingent consideration payable, there were no assets or liabilities measured at fair value on a non-recurring basis for which there was a change in carrying value. During the six months ended June 30, 2016, the Company made a final contingent consideration payment of $1,332 related to its 2014 acquisition of a securities lending business. As of June 30, 2016, the Company has no contingent consideration obligations payable. Financial Instruments Held for Investment—Designated as Trading As of June 30, 2016, and December 31, 2015, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiaries that are classified as trading securities. These investments are designated as trading based on the Company’s intent at the time of designation. In accordance with ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”), these securities are carried at fair value with resulting realized and unrealized gains and losses reflected as net investment income (loss) in the consolidated statements of operations. In addition, pursuant to ASC 825, “Financial Instruments” (“ASC 825”), from time-to-time the Company may elect to account for non-public equity securities acquired by other than the Company’s broker-dealer subsidiaries as part of its trading portfolio at fair value with resulting realized and unrealized gains and losses reflected as net investment income (loss) in the consolidated statements of operations. During the three and six months ended June 30, 2016, the Company did not make any such elections. During the three and six months ended June 30, 2015, the Company elected to account for one non-public equity security, purchased at a cost of $3,999, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net (loss) gain recognized on trading securities $ (25 ) $ 3,717 $ (537 ) $ 6,408 Less: Net loss (gain) recognized on trading securities sold during the period — — 197 (24 ) Unrealized (loss) gain recognized on trading securities still held at the reporting date $ (25 ) $ 3,717 $ (340 ) $ 6,384 As part of the Company’s investing activities, during the six months ended June 30, 2015, the Company entered into two short sales, totaling $200,000 face value, of 4.625% U.S. Treasury securities 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 maturing in May 2016, which was settled in the fourth quarter of 2015. During the three and six months ended June 30, 2015, the Company incurred $3,712 and $6,909, respectively, of interest expense related to these transactions. Fair Value of the Investments Valued at NAV As of June 30, 2016 and December 31, 2015, the Company had $31,814 and $66,602, respectively, of investments that are valued at NAV. The following table presents information about the Company’s investments in hedge funds and private equity funds measured at fair value based on NAV at June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 10,872 $ — $ 38,972 $ — Multi-strategy 12,495 — 18,930 — Private equity funds 8,447 212 8,700 212 Total $ 31,814 $ 212 $ 66,602 $ 212 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 June 30, 2016, 33% of the fair value of the Company’s fund investments, or $7,598 of the hedge funds, was redeemable on either a monthly or quarterly basis with notice periods of 60 days or less, and 67% of the fair value, or $15,769 of the hedge funds, was redeemable on a quarterly basis with notice periods of between 90 days and 180 days. During the six months ended June 30, 2016, the Company received $34,886 of proceeds from hedge fund redemptions. The Company has initiated redemptions for approximately $13,000 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 June 30, 2016 it was estimated that these funds will be liquidated in the next three years. Other Comprehensive Income The following tables set forth the changes in the Company’s accumulated other comprehensive income by component for the six months ended June 30, 2015 along with detail regarding reclassifications from other comprehensive income. All such reclassifications from other comprehensive income are included in net investment income in the Company’s consolidated statements of operations. As of June 30, 2016, and during the three and six months then ended, there was no accumulated other comprehensive income or reclassifications from other comprehensive income. Six Months Ended June 30, 2015 Accumulated other comprehensive income, beginning balance $ 44 Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income (44 ) Accumulated other comprehensive income, at period end $ — Six Months Ended June 30, 2015 Reclassifications from other comprehensive income: Realized gains on sale of securities $ 44 Other Investments, at Cost Other investments consist of non-public equity securities of $6,539 as of each of June 30, 2016 and December 31, 2015. The Company evaluates its non-public equity securities, carried at cost, for impairment as of each reporting date. This evaluation includes consideration of the operating performance of the respective companies, their financial condition and their near-term and long-term prospects. Based on its evaluations of these investments, the Company recorded no impairment losses during the three and six months ended June 30, 2016 and 2015. During the three and six months ended June 30, 2016 and 2015, there were no sales of investments carried at cost. |
Securities Lending
Securities Lending | 6 Months Ended |
Jun. 30, 2016 | |
Securities Lending [Abstract] | |
Securities Lending | 3. 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. As of June 30, 2016 and December 31, 2015, and during the six months and year then ended, respectively, all collateral received or paid was in the form of cash. The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of June 30, 2016 and December 31, 2015: Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s As of June 30, 2016 Securities borrowed $ 969,006 $ — $ 969,006 $ 969,006 $ — Securities loaned $ 968,681 $ — $ 968,681 $ 968,681 $ — As of December 31, 2015 Securities borrowed $ 685,037 $ — $ 685,037 $ 685,037 $ — Securities loaned $ 687,443 $ — $ 687,443 $ 687,443 $ — _________________ (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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets: Goodwill As of both June 30, 2016 and December 31, 2015, goodwill totaled $3,829 with no accumulated impairment loss. The Company performs its annual assessments of goodwill impairment during the third quarter. Based on the Company’s assessments, no impairment charges were recognized during the three and six months ended June 30, 2016 or 2015. Intangible Assets The following table reflects the components of intangible assets as of the dates indicated: June 30, December 31, 2016 2015 Customer relationships $ 3,006 $ 3,006 Accumulated amortization (824 ) (562 ) Net $ 2,182 $ 2,444 These intangible assets will be amortized over their estimated useful lives, of three to seven years, on a straight-line basis. For the three and six months ended June 30, 2016, amortization expense recognized was $131 and $262, respectively. For the three and six months ended June 30, 2015, amortization expense recognized was $89 and $179, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes: During the three and six months ended June 30, 2016, the Company recorded tax benefits of $982 and $7,613, respectively. The Company’s quarterly tax provision is determined pursuant to ASC 740, “Income Taxes” (“ASC 740”), which requires using an estimated annual effective rate based on forecasted taxable income for the full year. The Company’s effective tax rates for the three and six months ended June 30, 2016 were 10.7% and 35.8%, respectively. The effective tax rate for the three months ended June 30, 2016 differed from statutory tax rates primarily due to the effects of a decrease in the Company’s forecasted annual results as of June 30, 2016 and the resulting change in the Company’s forecasted full year effective tax rate. The effective tax rate for the six months ended June 30, 2016 differed from statutory rates primarily due to the impact of permanent differences on the Company’s forecasted full year results, and the effects of adopting the guidance in ASU 2016-09 which requires the tax effects of share-based awards to be treated as discrete items in the interim period in which the windfalls or shortfalls occur. During the three and six months ended June 30, 2016, windfalls of $121 and $1,091 were included in the Company’s income tax benefit. For the three and six months ended June 30, 2015, the Company recorded tax provisions of $1,499 and $178, respectively. The Company’s effective tax rates for the three and six months ended June 30, 2015 were 34.1% and 32.1%, respectively. These effective tax rates differed from statutory tax rates primarily due to the effects of capital loss carryforwards subject to a valuation allowance that were projected to be utilized during the year. At June 30, 2016, the Company’s net deferred tax assets totaled $45,642. Based on its application of the guidance in ASC 740, except for a valuation allowance of $344 against state capital loss carryforwards, the Company has not established a valuation allowance against its remaining deferred tax assets. The Company’s assessment of the positive and negative evidence related to the realization of these deferred tax assets and the potential need for a valuation allowance is a matter of significant judgment. In reaching this conclusion as of June 30, 2016, the Company weighed various factors related to its performance and financial position, as well as market conditions and prospective opportunities. Although the Company’s most recent results have been negative, it also generated consistent taxable income during consecutive periods within the prior twelve quarters. Additionally, the Company’s expense discipline, as evidenced by its diminishing level of fixed costs over the past three years, as well as its strong balance sheet, position the Company favorably to generate taxable income when market conditions improve. The Company believes that based on these factors, its forecasted operating results and ability to generate significant capital raising revenue from a small number of transactions, it is more likely than not that the Company will generate sufficient future taxable income to realize the remaining deferred tax assets as of June 30, 2016. Realization of the Company’s deferred tax assets will be dependent on the Company’s ability to generate future taxable income. However, because future events may adversely affect the Company’s performance and its realization of forecasted results, based on the guidance in ASC 740, a full valuation allowance against the deferred tax assets may need to be established if the Company does not report improved operating results in subsequent quarters. Recognition of such a valuation allowance would have a material effect on the Company’s after-tax results and reported financial condition. The Company will continue to assess the need for such a valuation allowance at each reporting date. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | 6. Regulatory Capital Requirements: FBR Capital Markets & Co. (“FBRCM”) and MLV & Co. LLC (“MLV”), the Company’s broker-dealer subsidiaries, are registered with the Securities and Exchange Commission (“SEC”) and are members of the Financial Industry Regulatory Authority, Inc. (“FINRA”). As such, they are subject to the minimum net capital requirements promulgated by the SEC. As of June 30, 2016, FBRCM had net capital of $39,593, which was $38,501 in excess of its required net capital of $1,092. In addition, MLV had net capital of $834, which was $734 in excess of its required net capital of $100. |
Income Per Share
Income Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Income Per Share | 7. Income Per Share: Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period, including restricted stock units (“RSUs”) that are not subject to forfeiture. Diluted earnings per share includes the impact of dilutive securities such as stock options, unvested shares of restricted stock and RSUs that are subject to forfeiture. Due to the Company’s reported net losses for the three and six months ended June 30, 2016, all stock options, unvested shares of restricted stock and unvested RSUs were considered anti-dilutive for these periods. The following tables present the computations of basic and diluted income per share for the periods indicated: Three Months Ended Three Months Ended June 30, 2016 June 30, 2015 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 7,600 7,600 8,084 8,084 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,075 Weighted average common and common equivalent shares outstanding (in thousands) 7,600 7,600 8,084 9,159 Net (loss) income applicable to common stock $ (8,208 ) $ (8,208 ) $ 2,899 $ 2,899 Net (loss) income per common share $ (1.08 ) $ (1.08 ) $ 0.36 $ 0.32 Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 7,584 7,584 8,453 8,453 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,181 Weighted average common and common equivalent shares outstanding (in thousands) 7,584 7,584 8,453 9,634 Net (loss) income applicable to common stock $ (13,662 ) $ (13,662 ) $ 377 $ 377 Net (loss) income per common share $ (1.80 ) $ (1.80 ) $ 0.04 $ 0.04 The following table presents Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock Options—Employees and directors 334 680 334 620 Stock Options—Non-employee 32 32 32 32 Restricted Stock, unvested 30 11 30 11 Restricted Stock Units, unvested (1) 833 1,070 833 1,024 Total 1,229 1,793 1,229 1,687 (1) Restricted stock units include 507,663 units that vest based on both individual service requirements and the achievement of specified performance goals. These contingently issuable units will only be included in diluted earnings per share based on the number of shares, if any, that would be issuable based on the performance goals if the end of the reporting period was the end of the performance period. Based on the Company’s assessment of these awards, as of June 30, 2016, the Company does not believe that the minimum performance thresholds will be met during the performance periods. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies: Litigation As of June 30, 2016, 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. On March 30, 2016, the previously disclosed putative class action lawsuit of 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, was dismissed in its entirety. The Court ruled that the operative amended complaint, filed on January 23, 2015, failed to allege any material misstatements. As previously disclosed, the Second Amended Complaint asserted claims against all the underwriters, including FBRCM, under Sections 11 and 12 of the Securities Act in connection with offerings in September and December 2013. Plaintiffs have requested that the court grant them permission to amend their complaint a third time. Briefing on that motion is complete as of June 23, 2016 and a ruling is pending. Regional Management continues to indemnify all of the underwriters, including FBRCM, pursuant to the operative underwriting agreement. 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. A subsequent complaint was filed in the United States District Court for the Eastern District of Tennessee on May 12, 2016. The lawsuit, styled Hull v. Miller et al., alleges identical claims to the previously filed complaints under Sections 11 and 12 of the Securities Act against eight of the same underwriters, including MLV, and the officers and directors of Miller. 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 June 30, 2016. In certain circumstances, broker-dealers and asset managers may also be held liable by customers and clients for losses sustained on investments. In recent years, there has been an increasing incidence of litigation and actions by government agencies and self-regulatory organizations involving the securities industry, including class actions that seek substantial damages. The Company is also subject to the risk of litigation, including litigation that may be without merit. As the Company intends to actively defend any such litigation, significant legal expenses could be incurred. An adverse resolution of any future litigation against the Company could materially affect its financial condition, operating results and liquidity. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity: Share Repurchases During the three and six months ended June 30, 2016, the Company repurchased 575,389 shares and 727,705 shares, respectively, of its common stock in open market or privately negotiated transactions at weighted average share prices of $17.49 per share and $17.48 per share, respectively, for a total cost of $10,062 and $12,719, respectively. During the three and six months ended June 30, 2015, the Company repurchased 134,868 shares and 1,090,664 shares, respectively, of its common stock in open market or privately negotiated transactions at weighted average share prices of $21.40 per share and $24.42 per share, respectively, for a total cost of $2,887 and $26,636, respectively. As of June 30, 2016, the Company had remaining authority to repurchase 272,295 additional shares. See note 10. Subsequent Events The Company also purchases shares of its common stock from recipients of stock-based compensation awards upon the vesting of RSU and restricted stock awards, and the exercise of options to purchase stock, as recipients sell shares to meet their tax obligations. During the three and six months ended June 30, 2016, the Company purchased 145,113 shares and 538,475 shares, respectively, of common stock at weighted average share prices of $18.57 and $17.01 per share, respectively, for a total cost of $2,695 and $9,158, respectively, for this purpose. During the three and six months ended June 30, 2015, the Company purchased 9,000 shares and 99,000 shares, respectively, of common stock at a weighted average share price of $22.22 per share and $23.23, respectively, for a total cost of $200 and $2,300, respectively, for this purpose. Dividends Since January 1, 2015, 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 April 26, 2016 May 9, 2016 May 27, 2016 $ 0.20 February 10, 2016 February 22, 2016 March 4, 2016 $ 0.20 October 20, 2015 November 2, 2015 November 27, 2015 $ 0.20 June 16, 2015 July 31, 2015 August 28, 2015 $ 0.20 See note 10. 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 June 30, 2016, the Company had $461 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 Company’s Employee Stock Purchase Plan (the “Purchase Plan”), eligible employees may purchase common stock through payroll deductions at a price that is 85% of the lower of the market value of the common stock on the first day of the offering period or the last day of the offering period. In accordance with the provisions of ASC 718, “Compensation—Stock Compensation,” the Company is required to recognize compensation expense relating to shares offered under the Purchase Plan. For the six months ended June 30, 2016 and 2015, the Company recognized compensation expense of $59 and $139, respectively, related to the Purchase Plan. Stock Compensation Plans FBR & Co. Amended 2006 Long-Term Incentive Plan (“FBR & Co. Long-Term Incentive Plan”) Under the FBR & Co. Long-Term Incentive Plan, as amended, the Company may grant options to purchase stock, stock appreciation rights, performance awards, restricted and unrestricted stock and RSUs for up to an aggregate of 7,217,496 shares of common stock, subject to increase under certain provisions of the plan, to eligible participants. Participants include employees, officers and directors of the Company and its subsidiaries. The plan’s termination date is October 22, 2023 unless it is terminated sooner by the Company’s Board of Directors. The FBR & Co. Long-Term Incentive Plan has a term of 10 years and options granted may have an exercise period of up to 10 years. Options may be incentive stock options, as defined by Section 422 of the Internal Revenue Code, or nonqualified stock options. The Company grants options to purchase stock, restricted shares of common stock and RSUs to employees that vest based on meeting specified service conditions of three to five years and in certain cases achievement of specified market conditions or performance goals. The following table presents compensation expense related to these awards for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock Options $ 7 $ — $ 11 $ 7 Restricted shares 149 72 298 152 RSUs 299 916 (507 ) 3,056 The following table presents issuance activity related to grants of these awards for the period indicated: Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Stock Options Restricted Shares RSUs Stock Options Restricted Shares RSUs Stock-based award issuances — 22,599 17,479 9,800 25,099 190,041 Grant date fair value per share $ — $ 16.04 $ 16.85 $ 2.87 $ 16.09 $ 16.63 For all RSU awards that vest based on individual service requirements and the Company’s achievement of specified performance goals, the Company assesses the probability of achieving these goals at each reporting date. There were 230,258 RSU awards granted during the year ended December 31, 2015 and 277,405 RSU awards granted during the year ended December 31, 2014, that will vest based on both individual service requirements and the Company’s achievement of specified performance goals (the “2014 and 2015 performance condition RSUs”). During the three and six months ended June 30, 2016 and for the year ended December 31, 2015, no compensation was recognized for the 2014 and 2015 performance condition RSUs based on the Company’s assessment that the minimum performance thresholds will not be met. There were 375,000 RSUs granted during the year ended December 31, 2013 that vested based on both individual service requirements and the achievement of a specified performance goal (“2013 performance condition RSUs”). 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 have increased by an amount equal to a 4% compound annual growth rate over the three-year period beginning on April 1, 2013 (the “2013 performance period”). The awards vest at a 100% level if FBR & Co. achieved a 7% compound annual growth rate over the 2013 performance period and at a proportionate rate at annual growth rates between a 4% and a 7%. During the three months ended June 30, 2016, based on the Company’s tangible book value growth during the 2013 performance period, 258,681 shares of the 2013 performance condition RSUs vested. As a result of activity during the three months ended March 31, 2016, this award vested at a lower rate than previously forecasted, as such $1,642 of stock compensation expense recognized in prior years was reversed during the three months ended March 31, 2016. The following table presents the unrecognized compensation related to unvested options to purchase stock, restricted shares of common stock, and RSUs and the weighted average vesting period in which the expense will be recognized: As of June 30, 2016 Stock Options Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ 18 $ 351 $ 4,004 $ — Unvested awards 9,800 30,106 325,616 — Weighted average vesting period 0.62 years 0.96 years 2.23 years 0.0 years (1) The unvested Performance Condition RSUs and unrecognized compensation amounts specified are based on the Company’s assessment of the rate at which the performance conditions will be met and the related percentage of awards that will vest. The total unvested awards that include a performance condition and related unrecognized compensation are 507,663 and $12,094, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. In addition, as part of the Company’s satisfaction of incentive compensation earned for past service under the Company’s variable compensation programs, employees may receive RSUs in lieu of cash payments. These RSUs are issued to an irrevocable trust for the benefit of the employees and are not returnable to the Company. In settlement of such accrued incentive compensation, for the six months ended June 30, 2015, the Company granted 26,549 such RSUs with an aggregate fair value upon grant date of $630. There were no comparable grants during the six months ended June 30, 2016. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events: Share Repurchase Program On July 14, 2016, the Company’s Board of Directors approved an increase in the Company’s repurchase authorization to an aggregate of 750,000 shares. Dividend Declaration On July 14, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per common share to be paid on August 26, 2016 to shareholders of record as of the close of business on July 29, 2016. |
Financial Instruments and Lon19
Financial Instruments and Long-Term Investments (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The FASB’s 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. |
Investments in Marketable Securities | As of June 30, 2016, and December 31, 2015, the Company had certain investments in marketable equity securities held by other than its broker-dealer subsidiaries that are classified as trading securities. These investments are designated as trading based on the Company’s intent at the time of designation. In accordance with ASC 320, “Investments—Debt and Equity Securities” (“ASC 320”), these securities are carried at fair value with resulting realized and unrealized gains and losses reflected as net investment income (loss) in the consolidated statements of operations. In addition, pursuant to ASC 825, “Financial Instruments” (“ASC 825”), from time-to-time the Company may elect to account for non-public equity securities acquired by other than the Company’s broker-dealer subsidiaries as part of its trading portfolio at fair value with resulting realized and unrealized gains and losses reflected as net investment income (loss) in the consolidated statements of operations. During the three and six months ended June 30, 2016, the Company did not make any such elections. During the three and six months ended June 30, 2015, the Company elected to account for one non-public equity security, purchased at a cost of $3,999, at fair value. Net gains and losses on such trading securities as of the dates indicated were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net (loss) gain recognized on trading securities $ (25 ) $ 3,717 $ (537 ) $ 6,408 Less: Net loss (gain) recognized on trading securities sold during the period — — 197 (24 ) Unrealized (loss) gain recognized on trading securities still held at the reporting date $ (25 ) $ 3,717 $ (340 ) $ 6,384 As part of the Company’s investing activities, during the six months ended June 30, 2015, the Company entered into two short sales, totaling $200,000 face value, of 4.625% U.S. Treasury securities 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 maturing in May 2016, which was settled in the fourth quarter of 2015. During the three and six months ended June 30, 2015, the Company incurred $3,712 and $6,909, respectively, of interest expense related to these transactions. |
Financial Instruments and Lon20
Financial Instruments and Long-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Items Measured at Fair Value On a Recurring Basis | The following tables set forth, by level within the fair value hierarchy, financial instruments and long-term investments accounted for under ASC 820 as of June 30, 2016 and December 31, 2015. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Items Measured at Fair Value on a Recurring Basis June 30, 2016 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiaries: Marketable and non-public equity securities $ 7,252 $ 250 $ — $ 7,002 Convertible and fixed income debt instruments — — — — 7,252 250 — 7,002 Financial instruments held for investment activities: Designated as trading: Marketable and non-public equity securities 8,341 — — 8,341 Warrants 164 — — 164 8,505 — — 8,505 Total 15,757 $ 250 $ — $ 15,507 Investment funds valued at net asset value (1) 31,814 Total financial instruments owned, at fair value $ 47,571 December 31, 2015 Level 1 Level 2 Level 3 Financial instruments owned, at fair value: Financial instruments held for trading activities at broker-dealer subsidiaries: 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 $ — |
Valuation Technique and Unobservable Inputs | The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of June 30, 2016: Valuation Technique Fair Value Unobservable Input Range Weighted Average Market approach $ 15,343 Over-the-counter trading activity $0.45 - $14.10/share $11.11 Black-Scholes $ 164 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 1.1% 1.1% 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 $ 16,069 Over-the-counter trading activity $0.44 - $14.10/share $11.13 Black-Scholes $ 436 Volatility 30% 30% Dividend Yield 0% 0% Interest Rate 1.9% 1.9% |
Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis | The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the three months ended June 30, 2016 and 2015. As of June 30, 2016 and 2015, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets. Three Months Ended June 30, 2016 2015 Trading Securities Trading Securities Beginning balance, April 1, $ 15,100 $ 2,856 Total net losses (realized/unrealized) included in earnings (62 ) 538 Purchases 13,922 25,677 Sales/distributions (13,453 ) (19,823 ) Ending balance, June 30, $ 15,507 $ 9,248 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 $ (115 ) $ 673 The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the six months ended June 30, 2016 and 2015. Six Months Ended June 30, 2016 2015 Trading Securities Trading Securities Beginning balance, January 1, $ 16,505 $ 3,188 Total net losses (realized/unrealized) included in earnings (322 ) 235 Purchases 25,062 39,097 Sales/Distributions (25,738 ) (33,243 ) Transfers out of Level 3 — (29 ) Ending balance, June 30, $ 15,507 $ 9,248 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 $ (116 ) $ 370 |
Gains (Losses) from Level 3 Financial Assets Measured on Recurring Basis | Gains and losses from Level 3 financial assets that are measured at fair value on a recurring basis, that are included in earnings for the three and six months ended June 30, 2016 and 2015, are reported in the following line descriptions on the Company’s consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Total gains and losses included in earnings for the period: Institutional brokerage $ (37 ) $ 136 $ 18 $ 137 Net investment (loss) gain (25 ) 402 (340 ) 98 Change in unrealized gains or losses relating to assets still held at the end of the respective period: Institutional brokerage $ (90 ) $ 271 $ 81 $ 272 Net investment (loss) gain (25 ) 402 (197 ) 98 |
Financial Instruments Held for Investment - Designated as Trading | Net gains and losses on such trading securities as of the dates indicated were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net (loss) gain recognized on trading securities $ (25 ) $ 3,717 $ (537 ) $ 6,408 Less: Net loss (gain) recognized on trading securities sold during the period — — 197 (24 ) Unrealized (loss) gain recognized on trading securities still held at the reporting date $ (25 ) $ 3,717 $ (340 ) $ 6,384 |
Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value | The following table presents information about the Company’s investments in hedge funds and private equity funds measured at fair value based on NAV at June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Fair Value Unfunded Commitment Fair Value Unfunded Commitment Hedge funds: Fixed income/credit-related $ 10,872 $ — $ 38,972 $ — Multi-strategy 12,495 — 18,930 — Private equity funds 8,447 212 8,700 212 Total $ 31,814 $ 212 $ 66,602 $ 212 |
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 six months ended June 30, 2015 along with detail regarding reclassifications from other comprehensive income. All such reclassifications from other comprehensive income are included in net investment income in the Company’s consolidated statements of operations. As of June 30, 2016, and during the three and six months then ended, there was no accumulated other comprehensive income or reclassifications from other comprehensive income. Six Months Ended June 30, 2015 Accumulated other comprehensive income, beginning balance $ 44 Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income (44 ) Accumulated other comprehensive income, at period end $ — Six Months Ended June 30, 2015 Reclassifications from other comprehensive income: Realized gains on sale of securities $ 44 |
Securities Lending (Tables)
Securities Lending (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Securities Lending [Abstract] | |
Gross and Net Securities Borrowing and Lending Balances | The following table presents the contractual gross and net securities borrowing and lending balances and the related offsetting amount as of June 30, 2016 and December 31, 2015: Gross amounts recognized Gross amounts offset in the consolidated balance sheets (1) Net amounts included in the consolidated balance sheets Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default (2) Net amount s As of June 30, 2016 Securities borrowed $ 969,006 $ — $ 969,006 $ 969,006 $ — Securities loaned $ 968,681 $ — $ 968,681 $ 968,681 $ — As of December 31, 2015 Securities borrowed $ 685,037 $ — $ 685,037 $ 685,037 $ — Securities loaned $ 687,443 $ — $ 687,443 $ 687,443 $ — _________________ (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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table reflects the components of intangible assets as of the dates indicated: June 30, December 31, 2016 2015 Customer relationships $ 3,006 $ 3,006 Accumulated amortization (824 ) (562 ) Net $ 2,182 $ 2,444 |
Income Per Share (Tables)
Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Income Per Share | The following tables present the computations of basic and diluted income per share for the periods indicated: Three Months Ended Three Months Ended June 30, 2016 June 30, 2015 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 7,600 7,600 8,084 8,084 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,075 Weighted average common and common equivalent shares outstanding (in thousands) 7,600 7,600 8,084 9,159 Net (loss) income applicable to common stock $ (8,208 ) $ (8,208 ) $ 2,899 $ 2,899 Net (loss) income per common share $ (1.08 ) $ (1.08 ) $ 0.36 $ 0.32 Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 Basi c Dilute d Basi c Dilute d Weighted average shares outstanding: Common stock (in thousands) 7,584 7,584 8,453 8,453 Stock options, unvested restricted stock and RSUs (in thousands) — — — 1,181 Weighted average common and common equivalent shares outstanding (in thousands) 7,584 7,584 8,453 9,634 Net (loss) income applicable to common stock $ (13,662 ) $ (13,662 ) $ 377 $ 377 Net (loss) income per common share $ (1.80 ) $ (1.80 ) $ 0.04 $ 0.04 |
Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding | The following table presents Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock Options—Employees and directors 334 680 334 620 Stock Options—Non-employee 32 32 32 32 Restricted Stock, unvested 30 11 30 11 Restricted Stock Units, unvested (1) 833 1,070 833 1,024 Total 1,229 1,793 1,229 1,687 (1) Restricted stock units include 507,663 units that vest based on both individual service requirements and the achievement of specified performance goals. These contingently issuable units will only be included in diluted earnings per share based on the number of shares, if any, that would be issuable based on the performance goals if the end of the reporting period was the end of the performance period. Based on the Company’s assessment of these awards, as of June 30, 2016, the Company does not believe that the minimum performance thresholds will be met during the performance periods. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared on Common Stock | Since January 1, 2015, 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 April 26, 2016 May 9, 2016 May 27, 2016 $ 0.20 February 10, 2016 February 22, 2016 March 4, 2016 $ 0.20 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: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock Options $ 7 $ — $ 11 $ 7 Restricted shares 149 72 298 152 RSUs 299 916 (507 ) 3,056 |
Issuance Activity Related to Grants of Awards | The following table presents issuance activity related to grants of these awards for the period indicated: Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Stock Options Restricted Shares RSUs Stock Options Restricted Shares RSUs Stock-based award issuances — 22,599 17,479 9,800 25,099 190,041 Grant date fair value per share $ — $ 16.04 $ 16.85 $ 2.87 $ 16.09 $ 16.63 |
Unrecognized Compensation Related to Awards | The following table presents the unrecognized compensation related to unvested options to purchase stock, restricted shares of common stock, and RSUs and the weighted average vesting period in which the expense will be recognized: As of June 30, 2016 Stock Options Restricted Shares RSUs Performance Condition RSUs (1) Unrecognized compensation $ 18 $ 351 $ 4,004 $ — Unvested awards 9,800 30,106 325,616 — Weighted average vesting period 0.62 years 0.96 years 2.23 years 0.0 years (1) The unvested Performance Condition RSUs and unrecognized compensation amounts specified are based on the Company’s assessment of the rate at which the performance conditions will be met and the related percentage of awards that will vest. The total unvested awards that include a performance condition and related unrecognized compensation are 507,663 and $12,094, respectively. This total compensation would only be recognized if all of the applicable awards with performance conditions vested at a 100% rate. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | |
Basis Of Presentation [Line Items] | |||
Cumulative adjustment to accumulated deficit | $ 513 | $ 513 | |
Excess tax benefits related to the vesting of stock compensation awards | $ 121 | $ 1,091 | |
Minimum [Member] | |||
Basis Of Presentation [Line Items] | |||
Percentage of investment revenues on total revenue net | 3.00% | ||
Maximum [Member] | |||
Basis Of Presentation [Line Items] | |||
Percentage of investment revenues on total revenue net | 4.00% | ||
Expected percentage of investment assets to total assets due to change in reporting structure | 5.00% |
Financial Instruments and Lon26
Financial Instruments and Long-Term Investments - Items Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held for trading activities at broker-dealer subsidiaries | $ 7,252 | $ 14,036 |
Financial instruments held for investment activities | 8,505 | 14,285 |
Total | 15,757 | 28,321 |
Investment funds valued at net asset value | 31,814 | 66,602 |
Total financial instruments owned, at fair value | 47,571 | 94,923 |
Financial instruments sold, not yet purchased, at fair value | 0 | 1,934 |
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 subsidiaries | 7,252 | 13,221 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | |
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 subsidiaries | 0 | 815 |
Financial instruments sold, not yet purchased, at fair value | 1 | |
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 subsidiaries | 250 | 5,586 |
Financial instruments held for investment activities | 0 | 5,415 |
Total | 250 | 11,001 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | |
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 subsidiaries | 250 | 5,586 |
Financial instruments sold, not yet purchased, at fair value | 1,933 | |
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 subsidiaries | 0 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | |
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 subsidiaries | 0 | 815 |
Financial instruments held for investment activities | 0 | 0 |
Total | 0 | 815 |
Financial instruments sold, not yet purchased, at fair value | 1 | |
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 subsidiaries | 0 | 0 |
Financial instruments sold, not yet purchased, at fair value | 0 | |
Estimated Fair Value, Level 2 [Member] | Convertible and Fixed Income Debt Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held for trading activities at broker-dealer subsidiaries | 0 | 815 |
Financial instruments sold, not yet purchased, at fair value | 1 | |
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 subsidiaries | 7,002 | 7,635 |
Financial instruments held for investment activities | 8,505 | 8,870 |
Total | 15,507 | 16,505 |
Financial instruments sold, not yet purchased, at fair value | 0 | |
Estimated Fair Value, Level 3 [Member] | Marketable and Non-Public Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held for trading activities at broker-dealer subsidiaries | 7,002 | 7,635 |
Financial instruments sold, not yet purchased, at fair value | 0 | |
Estimated Fair Value, Level 3 [Member] | Convertible and Fixed Income Debt Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held for trading activities at broker-dealer subsidiaries | 0 | 0 |
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 | 8,341 | 13,849 |
Trading Securities [Member] | Warrants [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held for investment activities | 164 | 436 |
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 | 0 | 5,415 |
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 | 8,341 | 8,434 |
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 | $ 164 | $ 436 |
Financial Instruments and Lon27
Financial Instruments and Long-Term Investments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)Security | Jun. 30, 2016USD ($)Security | Jun. 30, 2015USD ($)SecurityShort_Sale | Dec. 31, 2014USD ($)Short_Sale | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of assets measured on recurring basis | $ 15,757,000 | $ 15,757,000 | $ 28,321,000 | |||
Transfer made out of Level 1, 2 and 3 | Security | 0 | 0 | 0 | |||
Number of Transfer made out of Level 3 and into Level 1 | Security | 1 | |||||
Final payment related to the contingent consideration obligation | $ 1,332,000 | |||||
Contingent consideration payable | $ 0 | 0 | ||||
Financial instruments held for investment activities | 8,505,000 | 8,505,000 | 14,285,000 | |||
Number of short-sales | Short_Sale | 2 | |||||
Interest expense | 5,347,000 | $ 9,792,000 | 11,350,000 | $ 18,221,000 | ||
Investment funds valued at net asset value | 31,814,000 | $ 31,814,000 | 66,602,000 | |||
Liquidation of investment funds | 3 years | |||||
Accumulated other comprehensive income | 0 | 0 | $ 0 | 0 | $ 44,000 | |
Amount reclassifications from other comprehensive income | 0 | 0 | 44,000 | |||
Other investments, at cost | 6,539,000 | 6,539,000 | 6,539,000 | |||
Impairment losses | 0 | 0 | 0 | $ 0 | ||
Other Investments [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other investments, at cost | 6,539,000 | $ 6,539,000 | 6,539,000 | |||
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] | ||||||
Face value amount | 200,000,000 | $ 200,000,000 | ||||
One Non Public Equity Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financial instruments held for investment activities | 3,999,000 | 3,999,000 | ||||
U.S. Treasury Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest expense | $ 3,712,000 | $ 6,909,000 | ||||
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 | 33.00% | |||||
Amount of fair value redeemable on 60 days or less | $ 7,598,000 | |||||
Percentage of fair value redeemable between 90 and 180 days | 67.00% | |||||
Amount of fair value redeemable between 90 and 180 days | $ 15,769,000 | |||||
Proceeds from hedge fund redemptions | 34,886,000 | |||||
Amount of redemption for fair value hedging funds | 13,000,000 | $ 13,000,000 | ||||
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 on quarterly basis | 180 days | |||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Liabilities measured at fair value on a non-recurring basis | 0 | $ 0 | 0 | |||
Assets measured at fair value on a non-recurring basis | 0 | 0 | 0 | |||
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 | $ 15,507,000 | $ 15,507,000 | $ 16,505,000 | |||
Percentage of assets measured on recurring basis to assets | 1.30% | 1.30% | 1.80% | |||
Financial instruments held for investment activities | $ 8,505,000 | $ 8,505,000 | $ 8,870,000 |
Financial Instruments and Lon28
Financial Instruments and Long-Term Investments - Valuation Technique and Unobservable Inputs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Assets Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 15,343 | $ 16,069 |
Assets Approach [Member] | Minimum [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 0.45 | $ 0.44 |
Assets Approach [Member] | Maximum [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | 14.10 | 14.10 |
Assets Approach [Member] | Weighted Average [Member] | Over the Counter [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Over-the-counter trading activity | $ 11.11 | $ 11.13 |
Black-Scholes [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 164 | $ 436 |
Volatility | 30.00% | 30.00% |
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 1.10% | 1.90% |
Volatility, Weighted Average | 30.00% | 30.00% |
Black-Scholes [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Dividend Yield | 0.00% | 0.00% |
Interest Rate | 1.10% | 1.90% |
Financial Instruments and Lon29
Financial Instruments and Long-Term Investments - Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis (Detail) - Trading Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 15,100 | $ 2,856 | $ 16,505 | $ 3,188 |
Total net losses (realized/unrealized) included in earnings | (62) | 538 | (322) | 235 |
Purchases | 13,922 | 25,677 | 25,062 | 39,097 |
Sales/distributions | (13,453) | (19,823) | (25,738) | (33,243) |
Transfers out of Level 3 | (29) | |||
Ending balance | 15,507 | 9,248 | 15,507 | 9,248 |
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 | $ (115) | $ 673 | $ (116) | $ 370 |
Financial Instruments and Lon30
Financial Instruments and Long-Term Investments - Gains (Losses) from Level 3 Financial Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Institutional Brokerage [Member] | ||||
Total gains and losses included in earnings for the period: | ||||
Included in earnings | $ (37) | $ 136 | $ 18 | $ 137 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | (90) | 271 | 81 | 272 |
Net Investment (Loss) Gain [Member] | ||||
Total gains and losses included in earnings for the period: | ||||
Included in earnings | (25) | 402 | (340) | 98 |
Change in unrealized gains or losses relating to assets still held at the end of the respective period | $ (25) | $ 402 | $ (197) | $ 98 |
Financial Instruments and Lon31
Financial Instruments and Long-Term Investments - Designated as Trading (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract] | ||||
Net (loss) gain recognized on trading securities | $ (25) | $ 3,717 | $ (537) | $ 6,408 |
Less: Net loss (gain) recognized on trading securities sold during the period | 0 | 0 | 197 | (24) |
Unrealized (loss) gain recognized on trading securities still held at the reporting date | $ (25) | $ 3,717 | $ (340) | $ 6,384 |
Financial Instruments and Lon32
Financial Instruments and Long-Term Investments - Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 31,814 | $ 66,602 |
Unfunded Commitment | 212 | 212 |
Hedge Funds, Fixed Income/Credit-Related [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 10,872 | 38,972 |
Unfunded Commitment | 0 | 0 |
Hedge Funds, Multi-Strategy [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 12,495 | 18,930 |
Unfunded Commitment | 0 | 0 |
Private Equity Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 8,447 | 8,700 |
Unfunded Commitment | $ 212 | $ 212 |
Financial Instruments and Lon33
Financial Instruments and Long-Term Investments - Changes in the Company's Accumulated Other Comprehensive Income (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amortized Cost And Fair Value Debt Securities [Abstract] | |||
Accumulated other comprehensive income, beginning balance | $ 44,000 | ||
Other comprehensive income before reclassifications | 0 | ||
Amounts reclassified from other comprehensive income | $ 0 | $ 0 | (44,000) |
Accumulated other comprehensive income, at period end | 0 | 0 | 0 |
Reclassifications from other comprehensive income: | |||
Realized gains on sale of securities | $ 0 | $ 0 | $ 44,000 |
Securities Lending - Gross and
Securities Lending - Gross and Net Securities Borrowing and Lending Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Brokers And Dealers [Abstract] | ||
Gross amounts recognized | $ 969,006 | $ 685,037 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 969,006 | 685,037 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 969,006 | 685,037 |
Net amounts | 0 | 0 |
Gross amounts recognized | 968,681 | 687,443 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts included in the consolidated balance sheets | 968,681 | 687,443 |
Amounts not offset in the balance sheet but eligible for offsetting upon counterparty default | 968,681 | 687,443 |
Net amounts | $ 0 | $ 0 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | $ 0 | $ 0 | $ 0 | ||
Goodwill | 3,829,000 | 3,829,000 | $ 3,829,000 | ||
Goodwill impairment charges | 0 | $ 0 | $ 0 | $ 0 | |
Intangible assets, amortization method | straight-line basis | ||||
Amortization expense recognized | $ 131,000 | $ 89,000 | $ 262,000 | $ 179,000 | |
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 Asset36
Goodwill and Intangible Assets - Schedule of Components of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Customer relationships | $ 3,006 | $ 3,006 |
Accumulated amortization | (824) | (562) |
Net | $ 2,182 | $ 2,444 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (982) | $ 1,499 | $ (7,613) | $ 178 |
Effective tax rates | 10.70% | 34.10% | 35.80% | 32.10% |
Tax benefit related to windfalls | $ 121 | $ 1,091 | ||
Net deferred tax assets | 45,642 | 45,642 | ||
Valuation allowance | $ 344 | $ 344 |
Regulatory Capital Requiremen38
Regulatory Capital Requirements - Additional Information (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
FBRCM [Member] | |
Securities Financing Transaction [Line Items] | |
Net capital | $ 39,593 |
Net capital, excess of minimum required capital | 38,501 |
Minimum net capital required | 1,092 |
MLV [Member] | |
Securities Financing Transaction [Line Items] | |
Net capital | 834 |
Net capital, excess of minimum required capital | 734 |
Minimum net capital required | $ 100 |
Income Per Share - Computations
Income Per Share - Computations of Basic and Diluted (Loss) Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in thousands) | 7,600 | 8,084 | 7,584 | 8,453 |
Stock options, unvested restricted stock and RSUs, Diluted | 0 | 1,075 | 0 | 1,181 |
Weighted average common and common equivalent shares outstanding | 7,600 | 9,159 | 7,584 | 9,634 |
Net (loss) income applicable to common stock, Basic | $ (8,208) | $ 2,899 | $ (13,662) | $ 377 |
Net (loss) income per common share, Basic | $ (1.08) | $ 0.36 | $ (1.80) | $ 0.04 |
Net (loss) income applicable to common stock, Diluted | $ (8,208) | $ 2,899 | $ (13,662) | $ 377 |
Net (loss) income per common share, Diluted | $ (1.08) | $ 0.32 | $ (1.80) | $ 0.04 |
Income Per Share - Number of An
Income Per Share - Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 1,229 | 1,793 | 1,229 | 1,687 |
Stock Options-Employees and Directors [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 334 | 680 | 334 | 620 |
Stock Options-Non-Employee [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 32 | 32 | 32 | 32 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 30 | 11 | 30 | 11 |
RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards | 833 | 1,070 | 833 | 1,024 |
Income Per Share - Number of 41
Income Per Share - Number of Anti-Dilutive Stock Options, Unvested Restricted Stock and Unvested RSUs Outstanding (Parenthetical) (Detail) | Jun. 30, 2016shares |
RSUs [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Number of shares, expected to vest | 507,663 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended |
Nov. 30, 2015USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Alleged aggregate offering price | $ 151,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Repurchases of common stock | $ 12,719,000 | $ 45,219,000 | ||||||
Number of shares authorized to repurchase | 272,295 | 272,295 | ||||||
Dividends payable | $ 461,000 | $ 461,000 | ||||||
Discounted purchase price of market value for Employee Stock Purchase Plan | 85.00% | |||||||
Compensation expense | $ 59,000 | $ 139,000 | ||||||
Stock based compensation expense | $ 1,642,000 | $ 0 | $ 0 | |||||
Performance Period Commencing April 1, 2013 [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of rate used under condition one of performance goal | 50.00% | |||||||
Percentage of compound annual growth rate in performance period used under condition one of performance goal | 4.00% | |||||||
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 | 7.00% | |||||||
Maximum [Member] | Performance Period Commencing April 1, 2013 [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 | 7.00% | |||||||
Minimum [Member] | Performance Period Commencing April 1, 2013 [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 | 4.00% | |||||||
Stock Compensation Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock-based awards available for grant under the long-term incentive plan | 7,217,496 | 7,217,496 | ||||||
Period for long-term incentive plan | 10 years | |||||||
Termination date | Oct. 22, 2023 | |||||||
Stock Compensation Plan [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exercise period of stock options | 10 years | |||||||
RSUs [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares, Granted | 0 | 26,549 | ||||||
Aggregate fair value upon grant date | $ 630,000 | $ 630,000 | ||||||
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 | |||||
Number of shares, expected to vest | 258,681 | 258,681 | ||||||
Open Market Transaction [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of common stock repurchased | 575,389 | 134,868 | 727,705 | 1,090,664 | ||||
Weighted average prices | $ 17.49 | $ 21.40 | $ 17.48 | $ 24.42 | ||||
Repurchases of common stock | $ 10,062,000 | $ 2,887,000 | $ 12,719,000 | $ 26,636,000 | ||||
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 | 145,113 | 9,000 | 538,475 | 99,000 | ||||
Weighted average prices | $ 18.57 | $ 22.22 | $ 17.01 | $ 23.23 | ||||
Repurchases of common stock | $ 2,695,000 | $ 200,000 | $ 9,158,000 | $ 2,300,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Cash Dividends Declared on Common Stock (Detail) - $ / shares | Apr. 26, 2016 | Feb. 10, 2016 | Oct. 20, 2015 | Jun. 16, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Dividends Payable [Line Items] | ||||||||
Date declared | Jul. 14, 2016 | |||||||
Record date | Jul. 29, 2016 | |||||||
Payable date | Aug. 26, 2016 | |||||||
Cash dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.20 | ||||
Installment 2-FY 2016 [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Date declared | Apr. 26, 2016 | |||||||
Record date | May 9, 2016 | |||||||
Payable date | May 27, 2016 | |||||||
Cash dividends declared per common share | $ 0.20 | |||||||
Installment 1-FY 2016 [Member] | ||||||||
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 | $ 0.20 | |||||||
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 7 | $ 0 | $ 11 | $ 7 |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | 149 | 72 | 298 | 152 |
RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 299 | $ 916 | $ (507) | $ 3,056 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuance Activity Related to Grants of Awards (Detail) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based award issuances | 0 | 9,800 |
Grant date fair value per share | $ 0 | $ 2.87 |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based award issuances | 22,599 | 25,099 |
Grant date fair value per share | $ 16.04 | $ 16.09 |
RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based award issuances | 17,479 | 190,041 |
Grant date fair value per share | $ 16.85 | $ 16.63 |
Shareholders' Equity - Unrecogn
Shareholders' Equity - Unrecognized Compensation Related to Awards (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 12,094 |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 18 |
Unvested awards | shares | 9,800 |
Weighted average vesting period | 7 months 13 days |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 351 |
Unvested awards | shares | 30,106 |
Weighted average vesting period | 11 months 16 days |
RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 4,004 |
Unvested awards | shares | 325,616 |
Weighted average vesting period | 2 years 2 months 23 days |
Performance Condition RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation | $ 0 |
Unvested awards | shares | 0 |
Weighted average vesting period | 0 years |
Shareholders' Equity - Unreco48
Shareholders' Equity - Unrecognized Compensation Related to Awards (Parenthetical) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total unvested awards include performance conditions | shares | 507,663 |
Unrecognized compensation | $ | $ 12,094 |
Percentage of compensation expense | 100.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jul. 14, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Line Items] | |||||
Dividends payable, date declared | Jul. 14, 2016 | ||||
Cash dividends declared per common share | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.20 | |
Dividends payment date | Aug. 26, 2016 | ||||
Dividends payable, date of record | Jul. 29, 2016 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares authorized to be repurchased | 750,000 | ||||
Cash dividends declared per common share | $ 0.20 |