Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'HFF, Inc. | ' |
Entity Central Index Key | '0001380509 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 37,674,127 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $104,810 | $201,262 |
Accounts receivable | 2,672 | 1,093 |
Receivable from affiliate | 1 | 0 |
Mortgage notes receivable | 76,925 | 93,587 |
Prepaid taxes | 3,279 | 1,000 |
Prepaid expenses and other current assets | 3,574 | 2,495 |
Deferred tax asset, net | 1,756 | 8,779 |
Total current assets, net | 193,017 | 308,216 |
Property and equipment, net | 6,571 | 6,586 |
Deferred tax asset, net | 156,883 | 152,320 |
Goodwill | 3,712 | 3,712 |
Intangible assets, net | 16,801 | 16,776 |
Other noncurrent assets | 484 | 566 |
Total Assets | 377,468 | 488,176 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 240 | 258 |
Warehouse line of credit | 76,925 | 93,587 |
Accrued compensation and related taxes | 21,305 | 53,253 |
Accounts payable | 1,055 | 1,378 |
Payable under tax receivable agreement | 10,831 | 10,831 |
Other current liabilities | 3,151 | 12,524 |
Total current liabilities | 113,507 | 171,831 |
Deferred rent credit | 5,724 | 5,801 |
Payable under the tax receivable agreement, less current portion | 134,284 | 134,785 |
Long-term debt, less current portion | 186 | 185 |
Total liabilities | 253,701 | 312,602 |
Stockholders' equity: | ' | ' |
Treasury stock, 447,382 and 250,380 shares at cost, respectively | -9,042 | -2,760 |
Additional paid-in-capital | 96,049 | 76,097 |
Retained earnings | 36,379 | 101,865 |
Total equity | 123,767 | 175,574 |
Total liabilities and stockholders' equity | 377,468 | 488,176 |
Class A Common Stock [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Class A common stock, par value $0.01 per share, 175,000,000 authorized; 38,121,509 and 37,498,796 shares issued, respectively; 37,674,127 and 37,248,416 shares outstanding, respectively | $381 | $372 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Treasury stock, shares | 447,382 | 250,380 |
Class A Common Stock [Member] | ' | ' |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 38,121,509 | 37,498,796 |
Common stock, shares outstanding | 37,674,127 | 37,248,416 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Capital markets services revenue | $75,141 | $52,964 |
Interest on mortgage notes receivable | 425 | 845 |
Other | 465 | 406 |
Total revenues | 76,031 | 54,215 |
Expenses | ' | ' |
Cost of services | 46,074 | 34,842 |
Personnel | 13,941 | 8,732 |
Occupancy | 2,351 | 2,136 |
Travel and entertainment | 2,996 | 2,319 |
Supplies, research, and printing | 1,398 | 1,130 |
Insurance | 504 | 496 |
Professional fees | 1,207 | 1,008 |
Depreciation and amortization | 2,053 | 1,588 |
Interest on warehouse line of credit | 249 | 551 |
Other operating | 1,440 | 1,534 |
Total expenses | 72,213 | 54,336 |
Operating income (loss) | 3,818 | -121 |
Interest and other income, net | 2,910 | 4,187 |
Interest expense | -7 | -9 |
Decrease in payable under the tax receivable agreement | 501 | ' |
Income before income taxes | 7,222 | 4,057 |
Income tax expense | 3,515 | 1,741 |
Net income | $3,707 | $2,316 |
Earnings per share-Basic and Diluted | ' | ' |
Income available to HFF, Inc. common stockholders-Basic | $0.10 | $0.06 |
Income available to HFF, Inc. common stockholders-Diluted | $0.10 | $0.06 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Controlling Interest Common Stock [Member] | Controlling Interest Treasury Stock [Member] | Controlling Interest Additional Paid in Capital [Member] | Controlling Interest Retained Earnings [Member] |
In Thousands, except Share data | |||||
Beginning balance at Dec. 31, 2012 | $121,022 | $371 | ($1,055) | $71,267 | $50,439 |
Beginning balance, shares at Dec. 31, 2012 | ' | 37,063,844 | 157,617 | ' | ' |
Stock compensation and other, net | 3,072 | ' | ' | 3,072 | ' |
Excess tax benefits from share-based award activities | 485 | ' | ' | 485 | ' |
Issuance of Class A common stock, net | 2 | 2 | ' | ' | ' |
Issuance of Class A common stock, net, shares | ' | 275,335 | ' | ' | ' |
Repurchase of Class A common stock | -1,706 | -1 | -1,705 | ' | ' |
Repurchase of Class A common stock, shares | ' | -92,763 | 92,763 | ' | ' |
Net income | 2,316 | ' | ' | ' | 2,316 |
Ending balance at Mar. 31, 2013 | 125,191 | 372 | -2,760 | 74,824 | 52,755 |
Ending balance, shares at Mar. 31, 2013 | ' | 37,246,416 | 250,380 | ' | ' |
Beginning balance at Dec. 31, 2013 | 175,574 | 372 | -2,760 | 76,097 | 101,865 |
Beginning balance, shares at Dec. 31, 2013 | ' | 37,248,416 | 250,380 | ' | ' |
Stock compensation and other, net | 17,979 | ' | ' | 17,979 | ' |
Excess tax benefits from share-based award activities | 955 | ' | ' | 955 | ' |
Issuance of Class A common stock, net | ' | 9 | ' | -9 | ' |
Issuance of Class A common stock, net, shares | ' | 622,713 | ' | ' | ' |
Repurchase of Class A common stock | -6,282 | ' | -6,282 | ' | ' |
Repurchase of Class A common stock, shares | ' | -197,002 | 197,002 | ' | ' |
Dividends paid | -68,166 | ' | ' | 1,027 | -69,193 |
Net income | 3,707 | ' | ' | ' | 3,707 |
Ending balance at Mar. 31, 2014 | $123,767 | $381 | ($9,042) | $96,049 | $36,379 |
Ending balance, shares at Mar. 31, 2014 | ' | 37,674,127 | 447,382 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $3,707 | $2,316 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Stock based compensation | 4,745 | 2,530 |
Excess tax benefits from share-based award activities | -955 | -485 |
Deferred taxes | 3,415 | 1,838 |
Decrease in payable under the tax receivable agreement | -501 | ' |
Depreciation and amortization: | ' | ' |
Property and equipment | 489 | 428 |
Intangibles | 1,564 | 1,160 |
Gain on sale or disposition of assets, net | -1,134 | -1,877 |
Mortgage service rights assumed | -854 | -388 |
Proceeds from sale of mortgage servicing rights | 399 | 1,224 |
Increase (decrease) in cash from changes in: | ' | ' |
Accounts receivable | -1,579 | 745 |
Receivable from affiliates | -1 | -29 |
Mortgage notes receivable | 16,662 | 50,099 |
Net borrowings on warehouse line of credit | -16,662 | -50,099 |
Prepaid taxes, prepaid expenses and other current assets | -3,358 | -2,598 |
Other noncurrent assets | 82 | 56 |
Accrued compensation and related taxes | -18,714 | -13,389 |
Accounts payable | -323 | -469 |
Other accrued liabilities | -9,373 | -7,446 |
Other long-term liabilities | -77 | -252 |
Net cash used in operating activities | -22,468 | -16,636 |
Investing activities | ' | ' |
Purchases of property and equipment | -418 | -195 |
Net cash used in investing activities | -418 | -195 |
Financing activities | ' | ' |
Payments on long-term debt | -73 | -88 |
Excess tax benefits from share-based award activities | 955 | 485 |
Dividends paid | -68,166 | ' |
Treasury stock | -6,282 | -1,705 |
Net cash used in financing activities | -73,566 | -1,308 |
Net decrease in cash | -96,452 | -18,139 |
Cash and cash equivalents, beginning of period | 201,262 | 126,331 |
Cash and cash equivalents, end of period | $104,810 | $108,192 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and Basis of Presentation | |
Organization | |
HFF, Inc., a Delaware corporation (the “Company”), through its Operating Partnerships, Holliday Fenoglio Fowler, L.P., a Texas limited partnership (“HFF LP”), and HFF Securities L.P., a Delaware limited partnership and registered broker-dealer (“HFF Securities” and together with HFF LP, the “Operating Partnerships”), is a commercial real estate financial intermediary providing commercial real estate and capital markets services including debt placement, investment sales, equity placements, investment banking and advisory services, loan sales and loan sale advisory services, and commercial loan servicing and maintain 22 offices in the United States. | |
Initial Public Offering and Reorganization | |
The Company was formed in November 2006 in connection with a proposed initial public offering of its Class A common stock. On November 9, 2006, the Company filed a registration statement on Form S-1 with the United States Securities and Exchange Commission (the “SEC”) relating to a proposed underwritten initial public offering of 14,300,000 shares of Class A common stock of the Company (the “Offering”). On January 30, 2007, the SEC declared the registration statement on Form S-1 effective and the Company priced 14,300,000 shares for the initial public offering at a price of $18.00 per share. On January 31, 2007, the Company’s common stock began trading on the New York Stock Exchange under the symbol “HF.” | |
The proceeds of the Offering were used to purchase from HFF Holdings LLC, a Delaware limited liability company (“HFF Holdings”), all of the shares of Holliday GP Corp. (“Holiday GP”) and partnership units representing approximately 38.9% of each of the Operating Partnerships (including partnership units in the Operating Partnerships held by Holliday GP). | |
On February 21, 2007, the underwriters exercised their option to purchase an additional 2,145,000 shares of Class A common stock (15% of original issuance) at $18.00 per share. These proceeds were used to purchase HFF Holdings partnership units representing approximately 5.8% of each of the Operating Partnerships. The Company did not retain any of the proceeds from the Offering. | |
In addition to cash received for its sale of all of the shares of Holliday GP and approximately 44.7% of partnership units of each of the Operating Partnerships (including partnership units in the Operating Partnerships held by Holliday GP), HFF Holdings also received, through the issuance of one share of the Company’s Class B common stock to HFF Holdings, an exchange right that permitted HFF Holdings to exchange interests in the Operating Partnerships for shares of (i) the Company’s Class A common stock (the “Exchange Right”) and (ii) rights under a tax receivable agreement between the Company and HFF Holdings. Since all of the partnership units had been exchanged as of August 31, 2012 the Class B common stock was transferred to the Company and retired on August 31, 2012 in accordance with the Company’s certificate of incorporation. See Note 12 for further discussion of the tax receivable agreement. | |
As a result of the reorganization, the Company became a holding company through a series of transactions pursuant to a sale and purchase agreement. Pursuant to the Offering and reorganization, the Company’s sole assets are, through its wholly-owned subsidiary HFF Partnership Holdings, LLC, a Delaware limited liability company (“HoldCo LLC”), partnership interests of HFF LP and HFF Securities and all of the shares of Holliday GP. The transactions that occurred in connection with the initial public offering and reorganization are referred to as the “Reorganization Transactions.” | |
Basis of Presentation | |
The accompanying consolidated financial statements of the Company as of March 31, 2014 and December 31, 2013 and for the three month periods ended March 31, 2014 and March 31, 2013, include the accounts of HFF LP, HFF Securities, and the Company’s wholly-owned subsidiaries, Holliday GP and HoldCo LLC. All significant intercompany accounts and transactions have been eliminated. | |
The purchase of shares of Holliday GP and partnership units in each of the Operating Partnerships are treated as a reorganization under common control for financial reporting purposes. HFF Holdings owned 100% of Holliday GP, HFF LP Acquisition, LLC, a Delaware limited liability company (“Holdings Sub”), and the Operating Partnerships prior to the Reorganization Transactions. The initial purchase of shares of Holliday GP and the initial purchase of units in the Operating Partnerships were accounted for at historical cost, with no change in basis for financial reporting purposes. Accordingly, the net assets of HFF Holdings purchased by the Company are reported in the consolidated financial statements of the Company at HFF Holdings’ historical cost. | |
As the sole stockholder of Holliday GP (the sole general partner of the Operating Partnerships), the Company now operates and controls all of the business and affairs of the Operating Partnerships. The Company consolidates the financial results of the Operating Partnerships, and the prior ownership interest of HFF Holdings in the Operating Partnerships was treated as a noncontrolling interest in the Company’s consolidated financial statements. HFF Holdings, through its wholly-owned subsidiary (Holdings Sub), and the Company through its wholly-owned subsidiaries (HoldCo LLC and Holliday GP), were the only partners of the Operating Partnerships following the Reorganization Transactions. As of August 31, 2012, HFF Holdings had exchanged all of its remaining interests in the Operating Partnerships and, therefore, the Company, through its wholly-owned subsidiaries, became and continues to be the only equity holder of the Operating Partnerships. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
These interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Accordingly, significant accounting policies and disclosures normally provided have been omitted as such items are disclosed therein. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited consolidated financial statements. Therefore, actual results could differ from those estimates. Furthermore, operating results for the three months ended March 31, 2014 are not necessarily indicative of the results expected for the year ending December 31, 2014. | |
The Company has a firm profit participation plan and office profit participation plans (the “Plans”) that allow for incentive payments to be made, based on achieving various performance metrics, either in the form of cash or stock at the election of the Company’s board of directors. The expense associated with the Plans is included within personnel expenses in the consolidated statements of income. The expense recorded for these Plans is estimated during the year based on actual results at each interim reporting date and an estimate of future results for the remainder of the year. The Plans allow for payments to be made in both cash and share-based awards, the composition of which is determined in the first calendar quarter of the subsequent year. Cash and share-based awards issued under these Plans are subject to vesting conditions over the subsequent year, such that the total expense measured for these Plans is recorded over the period from the beginning of the performance year through the vesting date. Based on an accounting policy election, the expense associated with the share-based component of the estimated incentive payout is recognized before the grant date of the share-based awards due to the fact that the terms of the Plans have been approved by the Company’s board of directors and the employees of the Company understand the requirements to earn the award. Prior to the grant date, the share-based component expense is recorded as incentive compensation expense within personnel expenses in the Company’s consolidated statements of income. Following the award, if any, of the related incentive payout, the share-based component expense is reclassified as stock compensation costs within personnel expenses and the share-based component of the accrued incentive compensation is reclassified as additional paid-in-capital upon the granting of the awards on the Company’s consolidated balance sheets. |
Stock_Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Stock Compensation | ' |
3. Stock Compensation | |
The stock compensation cost that has been charged against income for the three months ended March 31, 2014 and 2013 was $4.7 million and $2.5 million, respectively, which is recorded in personnel expenses in the consolidated statements of income. At March 31, 2014, there was approximately $23.3 million of unrecognized compensation cost related to non-vested restricted stock units with a weighted average remaining contractual term of 4.2 years. As of March 31, 2014, there were 898,645 restricted stock units outstanding. Stock compensation expense related to the liability awards that has been included within income for the three months ended March 31, 2014 and 2013 was $3.3 million and $1.9 million, respectively. | |
During the three months ended March 31, 2014, no options were granted, vested, exercised or forfeited. | |
During the three month period ending March 31, 2014, 983,809 new restricted stock units were granted, 629,826 restricted stock units vested of which 622,713 were converted to Class A common stock and no restricted stock units were forfeited. Of the 983,809 new restricted stock units granted during the three month period ending March, 31, 2014, $3.8 million of costs associated with 190,007 of these restricted stock units were recognized in income during 2013 pursuant to the Company’s accounting policy election regarding the firm and office profit participation plans as further discussed in Note 2. Additionally, $3.8 million of the share-based component of the accrued incentive compensation that was paid in the form of restricted shares was reclassified to additional paid-in-capital on the Company’s consolidated balance sheets. During the three month period ending March, 31, 2013, there were 213,158 restricted stock units granted for which $2.4 million of costs were recognized in income during 2012 pursuant to the Company’s accounting policy election regarding the firm and office profit participation plans. Additionally, $2.4 million of the share-based component of the accrued incentive compensation that was paid in the form of restricted shares was reclassified to additional paid-in-capital on the Company’s consolidated balance sheets. | |
The fair value of vested restricted stock units was $4.6 million at March 31, 2014. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
4. Property and Equipment | |||||||||
Property and equipment consist of the following (dollars in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 5,225 | $ | 5,066 | |||||
Computer equipment | 1,058 | 970 | |||||||
Capitalized software costs | 535 | 530 | |||||||
Leasehold improvements | 7,962 | 7,786 | |||||||
Subtotal | 14,780 | 14,352 | |||||||
Less accumulated depreciation and amortization | (8,209 | ) | (7,766 | ) | |||||
$ | 6,571 | $ | 6,586 | ||||||
At March 31, 2014 and December 31, 2013, the Company has recorded, within furniture and equipment, office equipment under capital leases of $1.0 million and $1.1 million, respectively, including accumulated amortization of $0.6 million and $0.7 million, respectively, which is included within depreciation and amortization expense in the accompanying consolidated statements of income. See Note 7 for discussion of the related capital lease obligations. |
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
5. Intangible Assets | |||||||||||||||||||||||||
The Company’s intangible assets are summarized as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Book | Carrying | Amortization | Book | ||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Mortgage servicing rights | $ | 34,892 | $ | (18,191 | ) | $ | 16,701 | $ | 34,100 | $ | (17,424 | ) | $ | 16,676 | |||||||||||
Unamortizable intangible assets: | |||||||||||||||||||||||||
FINRA license | 100 | — | 100 | 100 | — | 100 | |||||||||||||||||||
Total intangible assets | $ | 34,992 | $ | (18,191 | ) | $ | 16,801 | $ | 34,200 | $ | (17,424 | ) | $ | 16,776 | |||||||||||
As of March 31, 2014 and December 31, 2013, the Company serviced $34.9 billion and $33.1 billion, respectively, of commercial loans. The Company earned $4.0 million and $3.9 million in servicing fees and interest on float and escrow balances for the three month periods ending March 31, 2014 and 2013, respectively. These revenues are recorded as capital markets services revenues in the consolidated statements of income. | |||||||||||||||||||||||||
The total commercial loan servicing portfolio includes loans for which there are no corresponding mortgage servicing rights recorded on the balance sheet, as these servicing rights were assumed prior to the Company’s adoption of ASC 860, Transfers and Servicing (ASC 860) on January 1, 2007 and involved no initial consideration paid by the Company. The Company recorded mortgage servicing rights of $16.7 million and $16.7 million on $29.2 billion and $27.0 billion, respectively, of the total loans serviced as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||
The Company stratifies its servicing portfolio based on the type of loan, including life company loans, commercial mortgage backed securities (CMBS), Freddie Mac and limited-service life company loans. | |||||||||||||||||||||||||
Changes in the carrying value of mortgage servicing rights for the three month periods ended March 31, 2014 and 2013, and the fair value at the end of each period were as follows (dollars in thousands): | |||||||||||||||||||||||||
Category | 12/31/13 | Capitalized | Amortized | Sold / | 3/31/14 | ||||||||||||||||||||
Transferred | |||||||||||||||||||||||||
Freddie Mac | $ | 3,730 | $ | 823 | $ | (588 | ) | $ | (408 | ) | $ | 3,557 | |||||||||||||
CMBS | 10,978 | 219 | (627 | ) | 326 | 10,896 | |||||||||||||||||||
Life company | 1,537 | 610 | (287 | ) | (6 | ) | 1,854 | ||||||||||||||||||
Life company – limited | 431 | 25 | (62 | ) | — | 394 | |||||||||||||||||||
Total | $ | 16,676 | $ | 1,677 | $ | (1,564 | ) | $ | (88 | ) | $ | 16,701 | |||||||||||||
Category | 12/31/12 | Capitalized | Amortized | Sold / | 3/31/13 | ||||||||||||||||||||
Transferred | |||||||||||||||||||||||||
Freddie Mac | $ | 7,641 | $ | 935 | $ | (387 | ) | $ | (1,288 | ) | $ | 6,901 | |||||||||||||
CMBS | 7,838 | 170 | (427 | ) | 1,005 | 8,586 | |||||||||||||||||||
Life company | 2,021 | 165 | (305 | ) | — | 1,881 | |||||||||||||||||||
Life company – limited | 299 | 54 | (41 | ) | — | 312 | |||||||||||||||||||
Total | $ | 17,799 | $ | 1,324 | $ | (1,160 | ) | $ | (283 | ) | $ | 17,680 | |||||||||||||
Amounts capitalized represent mortgage servicing rights retained upon the sale of originated loans to Freddie Mac and mortgage servicing rights acquired without the exchange of initial consideration. The Company recorded mortgage servicing rights retained upon the sale of originated loans to Freddie Mac of $0.8 million and $0.9 million on $307.4 million and $359.2 million of loans, respectively, during the three month periods ending March 31, 2014 and 2013, respectively. The Company recorded mortgage servicing rights acquired without the exchange of initial consideration on the CMBS and Life company tranches of $0.9 million and $0.4 million on $2.1 billion and $1.1 billion of loans, respectively, during the three month periods ending March 31, 2014 and 2013, respectively. During the three months ending March 31, 2014 and 2013, the Company sold the cashiering portion of certain Freddie Mac mortgage servicing rights. While the Company transferred the risks and rewards of ownership of the cashiering portion of the mortgage servicing rights, the Company continues to perform limited servicing activities on these loans for a reduced market-based fee. Therefore, the remaining servicing rights were transferred to the CMBS servicing tranche. The net result of these transactions was the Company recording a gain in the three months ending March 31, 2014 and 2013 of $0.3 million and $0.9 million, respectively, within interest and other income, net in the consolidated statements of income. The Company also received securitization compensation in relation to the sale of the cashiering portion of certain Freddie Mac mortgage servicing rights in the three months ending March 31, 2014 and 2013 of $0.3 million and $1.2 million, respectively. The securitization compensation is recorded within interest and other income, net in the consolidated statements of income. | |||||||||||||||||||||||||
Amortization expense related to intangible assets was $1.6 million and $1.2 million during the three month periods ended March 31, 2014 and 2013, respectively, and is recorded in depreciation and amortization in the consolidated statements of income. | |||||||||||||||||||||||||
Estimated amortization expense for the next five years is as follows (dollars in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 3,435 | |||||||||||||||||||||||
2015 | 3,800 | ||||||||||||||||||||||||
2016 | 2,970 | ||||||||||||||||||||||||
2017 | 2,100 | ||||||||||||||||||||||||
2018 | 1,585 | ||||||||||||||||||||||||
2019 | 1,124 | ||||||||||||||||||||||||
The weighted-average life of the mortgage servicing rights intangible asset was 5.7 years at March 31, 2014. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||
6. Fair Value Measurement | |||||||||||||||||
ASC Topic 820, Fair Value Measurement (ASC 820) establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: Level 1 inputs which are quoted market prices in active markets for identical assets or liabilities; Level 2 inputs which are observable market-based inputs or unobservable inputs corroborated by market data for the asset or liability; and Level 3 inputs which are unobservable inputs based on our own assumptions that are not corroborated by market data. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
In May 2011, the Financial Accounting Standards Board issued an accounting pronouncement which amends the fair value measurement and disclosure requirements to achieve common disclosure requirements between GAAP and International Financial Reporting Standards. The accounting pronouncement requires certain disclosures about transfers between Level 1 and Level 2 of the fair value hierarchy, sensitivity of fair value measurements categorized within Level 3 of the fair value hierarchy, and categorization by level of items that are reported at cost but are required to be disclosed at fair value. The adoption of this pronouncement had no impact on the Company’s consolidated financial statements. | |||||||||||||||||
As of March 31, 2014, the Company did not have any financial assets or liabilities recognized at fair value on a recurring basis. | |||||||||||||||||
In accordance with generally accepted accounting principles, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. These assets may include mortgage servicing rights and mortgage notes receivable. The mortgage servicing rights are recorded at fair value upon initial recording and were not re-measured at fair value during the first quarter of 2014 because the Company continues to utilize the amortization method under ASC 860 and the fair value of the mortgage servicing rights exceeds the carrying value at March 31, 2014. The fair value of the mortgage notes receivable was based on prices observable in the market for similar loans and equaled carrying value at March 31, 2014. Therefore, no lower of cost or fair value adjustment was required. | |||||||||||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2014 (in thousands): | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 76,925 | $ | — | $ | 76,925 | $ | — | |||||||||
Mortgage servicing rights | 16,701 | — | — | 20,651 | |||||||||||||
Total nonrecurring fair value measurements | $ | 93,626 | $ | — | $ | 76,925 | $ | 20,651 | |||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 93,587 | $ | — | $ | 93,587 | $ | — | |||||||||
Mortgage servicing rights | 16,676 | — | — | 20,258 | |||||||||||||
Total nonrecurring fair value measurements | $ | 110,263 | — | $ | 93,587 | $ | 20,258 | ||||||||||
Mortgage servicing rights do not trade in an active, open market with readily-available observable prices. Since there is no ready market value for the mortgage servicing rights, such as quoted market prices or prices based on sales or purchases of similar assets, the Company determines the fair value of the mortgage servicing rights by estimating the present value of future cash flows associated with the servicing of the loans. Management makes certain assumptions and judgments in estimating the fair value of servicing rights, including the benefits of servicing (contractual servicing fees and interest on escrow and float balances), the cost of servicing, prepayment rates (including risk of default), an inflation rate, the expected life of the cash flows and the discount rate. The significant assumptions utilized to value servicing rights as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Expected life of cash flows | 3 years to 10 years | 3 years to 10 years | |||||||||||||||
Discount rate (1) | 15% to 20% | 15% to 20% | |||||||||||||||
Prepayment rate | 0% to 8% | 0% to 8% | |||||||||||||||
Inflation rate | 2% | 2% | |||||||||||||||
Cost of service per loan | $ | 1,600 to $3,983 | $ | 1,600 to $4,421 | |||||||||||||
-1 | Reflects the time value of money and the risk of future cash flows related to the possible cancellation of servicing contracts, transferability restrictions on certain servicing contracts, concentration in the life company portfolio and large loan risk. | ||||||||||||||||
The above assumptions are subject to change based on management’s judgments and estimates of future changes in the risks related to future cash flows and interest rates. Changes in these factors would cause a corresponding increase or decrease in the prepayment rates and discount rates used in the Company’s valuation model. | |||||||||||||||||
FASB ASC Topic 825, Financial Instruments also requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments, excluding those included in the preceding fair value tables above, are as follows: | |||||||||||||||||
Cash and Cash Equivalents: These balances include cash and cash equivalents with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments; these are considered Level 1 fair values. | |||||||||||||||||
Warehouse line of credit: Due to the short-term nature and variable interest rates of this instrument, fair value approximates carrying value; these are considered Level 2 fair values. |
Capital_Lease_Obligations
Capital Lease Obligations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Capital Lease Obligations | ' | ||||||||
7. Capital Lease Obligations | |||||||||
Capital lease obligations consist of the following at March 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Capital lease obligations | $ | 426 | $ | 443 | |||||
Less current maturities | 240 | 258 | |||||||
$ | 186 | $ | 185 | ||||||
Capital lease obligations consist primarily of office equipment leases that expire at various dates through April 2017. A summary of future minimum lease payments under capital leases at March 31, 2014 is as follows (dollars in thousands): | |||||||||
Remainder of 2014 | $ | 200 | |||||||
2015 | 139 | ||||||||
2016 | 78 | ||||||||
2017 | 9 | ||||||||
2018 | — | ||||||||
$ | 426 | ||||||||
Warehouse_Line_of_Credit
Warehouse Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Warehouse Line of Credit | ' |
8. Warehouse Line of Credit | |
HFF LP maintains two uncommitted warehouse revolving lines of credit for the purpose of funding the Freddie Mac mortgage loans that it originates in connection with its services as a Freddie Mac Multifamily Program Plus® Seller/Servicer. The Company is party to an uncommitted $350 million financing arrangement with PNC Bank, N.A. (“PNC”) and an uncommitted $125 million financing arrangement with The Huntington Bank (“Huntington”). In May 2013, availability under the Huntington line increased to $125 million from $75 million. | |
Each funding is separately approved on a transaction-by-transaction basis and is collateralized by a loan and mortgage on a multifamily property that is ultimately purchased by Freddie Mac. The PNC and Huntington financing arrangements are only for the purpose of supporting the Company’s participation in Freddie Mac’s Program Plus Seller/Servicer program and cannot be used for any other purpose. As of March 31, 2014 and December 31, 2013, HFF LP had $76.9 million and $93.6 million, respectively, outstanding on the warehouse lines of credit and a corresponding amount of mortgage notes receivable. Interest on the warehouse lines of credit is at the 30-day LIBOR rate (0.15% and 0.17% at March 31, 2014 and December 31, 2013, respectively) plus a spread. HFF LP is also paid interest on its loan secured by a multifamily loan at the rate in the Freddie Mac note. |
Lease_Commitments
Lease Commitments | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Text Block [Abstract] | ' | ||||
Lease Commitments | ' | ||||
9. Lease Commitments | |||||
The Company leases various corporate offices and office equipment under noncancelable operating leases. These leases have initial terms of one to ten years. Several of the leases have termination clauses whereby the term may be reduced by two to seven years upon prior notice and payment of a termination fee by the Company. Total rental expense charged to operations was $1.9 million and $1.7 million during the three month periods ended March 31, 2014 and 2013, respectively, and is recorded within occupancy expense in the consolidated statements of income. | |||||
Future minimum rental payments for the next five years under operating leases with noncancelable terms in excess of one year and without regard to early termination provisions are as follows (dollars in thousands): | |||||
Remainder of 2014 | $ | 4,808 | |||
2015 | 5,942 | ||||
2016 | 5,176 | ||||
2017 | 4,563 | ||||
2018 | 3,651 | ||||
2019 | 2,971 | ||||
Thereafter | 4,660 | ||||
$ | 31,771 | ||||
The Company subleases certain office space to subtenants, which subleases may be canceled at any time. The rental income received from these subleases is included as a reduction of occupancy expenses in the accompanying consolidated statements of income. | |||||
The Company also leases certain office equipment under capital leases that expire at various dates through 2017. See Note 4 and Note 7 above for further description of the assets and related obligations recorded under these capital leases at March 31, 2014 and December 31, 2013, respectively. |
Servicing
Servicing | 3 Months Ended |
Mar. 31, 2014 | |
Transfers And Servicing [Abstract] | ' |
Servicing | ' |
10. Servicing | |
The Company services commercial real estate loans for lenders. The unpaid principal balance of the servicing portfolio totaled $34.9 billion and $33.1 billion at March 31, 2014 and December 31, 2013, respectively. | |
In connection with its servicing activities, the Company holds funds in escrow for the benefit of mortgagors for hazard insurance, real estate taxes and other financing arrangements. At March 31, 2014 and December 31, 2013, the funds held in escrow totaled $141.5 million and $211.1 million, respectively. These funds, and the offsetting liabilities of the borrowers to external parties, are not presented in the Company’s consolidated financial statements as they do not represent the assets and liabilities of the Company. Pursuant to the requirements of the various investors for which the Company services loans, the Company maintains bank accounts, holding escrow funds, which have balances in excess of the FDIC insurance limit. The fees earned on these escrow funds are reported in capital markets services revenue in the consolidated statements of income. |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2014 | |
Text Block [Abstract] | ' |
Legal Proceedings | ' |
11. Legal Proceedings | |
The Company is party to various litigation matters, in most cases involving ordinary course and routine claims incidental to its business. The Company cannot estimate with certainty its ultimate legal and financial liability with respect to any pending matters. In accordance with ASC 450, Contingencies, a reserve for estimated losses is recorded when the amount is probable and can be reasonably estimated. However, the Company does not believe, based on examination of such pending matters, that a material loss related to these matters is reasonably possible. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
12. Income Taxes | |||||||||||||||||
Income tax expense includes current and deferred taxes as follows (dollars in thousands): | |||||||||||||||||
Current | Deferred | Total | |||||||||||||||
Three Months Ended March 31, 2014: | |||||||||||||||||
Federal | $ | — | $ | 2,544 | $ | 2,544 | |||||||||||
State | 100 | 871 | 971 | ||||||||||||||
$ | 100 | $ | 3,415 | $ | 3,515 | ||||||||||||
Current | Deferred | Total | |||||||||||||||
Three Months Ended March 31, 2013: | |||||||||||||||||
Federal | $ | — | $ | 1,672 | $ | 1,672 | |||||||||||
State | (97 | ) | 166 | 69 | |||||||||||||
$ | (97 | ) | $ | 1,838 | $ | 1,741 | |||||||||||
The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the effective tax rate on net income is as follows for the three months ended March 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income tax expense / (benefit) | Rate | Rate | |||||||||||||||
Taxes computed at federal rate | $ | 2,528 | 35 | % | $ | 1,420 | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 336 | 4.7 | % | 249 | 6.1 | % | |||||||||||
Effect of deferred tax rate change | 590 | 8.2 | % | — | 0 | % | |||||||||||
Change in income tax benefit payable to stockholder | (15 | ) | (0.2 | )% | — | 0 | % | ||||||||||
Compensation limitation | 7 | 0.1 | % | 34 | 0.8 | % | |||||||||||
Meals and entertainment | 72 | 1 | % | 37 | 0.9 | % | |||||||||||
Other | (3 | ) | (0.1 | )% | 1 | 0 | % | ||||||||||
Income tax expense | $ | 3,515 | 48.7 | % | $ | 1,741 | 42.9 | % | |||||||||
Deferred income tax assets and liabilities consist of the following at March 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Section 754 election tax basis step-up | $ | 154,860 | $ | 158,229 | |||||||||||||
Tenant improvements | 2,596 | 2,522 | |||||||||||||||
Net operating loss carryforward | 7,367 | 379 | |||||||||||||||
Restricted stock units | 1,818 | 5,271 | |||||||||||||||
Compensation | 1,103 | 3,805 | |||||||||||||||
Intangible asset | 500 | 510 | |||||||||||||||
Tax credits | 123 | 123 | |||||||||||||||
Other | 400 | 348 | |||||||||||||||
Deferred income tax asset | 168,767 | 171,187 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Goodwill | (1,277 | ) | (1,277 | ) | |||||||||||||
Servicing rights | (6,342 | ) | (6,332 | ) | |||||||||||||
Deferred rent | (1,922 | ) | (1,892 | ) | |||||||||||||
Investment in partnership | (587 | ) | (587 | ) | |||||||||||||
Deferred income tax liability | (10,128 | ) | (10,088 | ) | |||||||||||||
Net deferred income tax asset | $ | 158,639 | $ | 161,099 | |||||||||||||
The primary deferred tax asset represents a tax basis step-up election under Section 754 of the Internal Revenue Code (“Section 754”) made by the Company relating to the initial purchase of units of the Operating Partnerships in connection with the Reorganization Transactions and a tax basis step-up on subsequent exchanges of Operating Partnership units for shares of the Company’s Class A common stock since the date of the Reorganization Transactions. As a result of the step-up in basis from these transactions, the Company is entitled to annual future tax benefits in the form of amortization for income tax purposes. The annual pre-tax benefit on the Section 754 step-up and past payments under the tax receivable agreement was approximately $32.8 million at March 31, 2014. To the extent that the Company does not have sufficient taxable income in a year to fully utilize this annual deduction, the unused benefit is recharacterized as a net operating loss and can then be carried back two years or carried forward for twenty years. The Company measured the deferred tax asset based on the estimated income tax effects of the increase in the tax basis of the assets owned by the Operating Partnerships utilizing the enacted tax rates at the date of the transaction. All subsequent changes in the measurement of the deferred tax assets due to changes in the enacted tax rates or changes in the valuation allowance, if any, are recorded as a component of income tax expense. | |||||||||||||||||
In evaluating the realizability of the deferred tax assets, management makes estimates and judgments regarding the level and timing of future taxable income, including projecting future revenue growth and changes to the cost structure. In order to realize the anticipated 2014 pre-tax benefit of approximately $32.8 million, the Company needs to generate approximately $268 million in revenue during 2014, assuming a constant cost structure. In the event that the Company cannot realize the anticipated 2014 pre-tax benefit of $32.8 million, the shortfall becomes a net operating loss that can be carried back two years to offset prior years’ taxable income or carried forward twenty years to offset future taxable income. Based on this analysis and other quantitative and qualitative factors, management believes that it is currently more likely than not that the Company will be able to generate sufficient taxable income to realize the net deferred tax assets resulting from the basis step up transactions (initial sale of units in the Operating Partnerships and subsequent exchanges of Operating Partnership units since the date of the Reorganization Transactions). The combined federal and state tax effected net operating loss carryforwards of $7.4 million at March 31, 2014 represent the cumulative excess of the Section 754 annual tax deductions over taxable income for the three month period ending March 31, 2014 and prior years. The federal net operating loss carryforwards expire from 2028 through 2031, while the state net operating loss carryforwards expire from 2020 through 2031. | |||||||||||||||||
The Company will recognize interest and penalties related to unrecognized tax benefits in interest and other income, net in the consolidated statements of income. There were no interest or penalties recorded in the three month periods ending March 31, 2014 and 2013. | |||||||||||||||||
Tax Receivable Agreement | |||||||||||||||||
In connection with the Reorganization Transactions, HFF LP and HFF Securities made an election under Section 754 for 2007 and intend to keep that election in effect for each taxable year in which an exchange of Operating Partnership partnership units for shares of the Company’s Class A common stock occurred. The initial sale as a result of the Offering and subsequent exchanges of Operating Partnership units for shares of Class A common stock produced increases in the tax basis of the assets owned by HFF LP and HFF Securities to their fair market value. This increase in tax basis allows the Company to reduce the amount of tax payments to the extent that the Company has taxable income. As a result of the increase in tax basis, the Company is entitled to future tax benefits of $154.9 million and has recorded this amount as a deferred tax asset on its consolidated balance sheet. The Company has updated its estimate of these future tax benefits based on the changes to the estimated annual effective tax rate for 2014. The Company is obligated, however, pursuant to its tax receivable agreement with HFF Holdings, to pay to HFF Holdings 85% of the amount of cash savings in U.S. federal, state and local income tax that the Company actually realizes as a result of these increases in tax basis and as a result of certain other tax benefits arising from the Company entering into the tax receivable agreement and making payments under that agreement. For purposes of the tax receivable agreement, actual cash savings in income tax is computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of HFF LP and HFF Securities as a result of the initial sale and later exchanges had the Company not entered into the tax receivable agreement. | |||||||||||||||||
The Company accounts for the income tax effects and corresponding tax receivable agreement effects as a result of the initial purchase and the sale of units of the Operating Partnerships in connection with the Reorganization Transactions and subsequent exchanges of Operating Partnership units for the Company’s Class A shares by recognizing a deferred tax asset for the estimated income tax effects of the increase in the tax basis of the assets owned by the Operating Partnerships, based on enacted tax rates at the date of the transaction, less any tax valuation allowance the Company believes is required. In accordance with ASC 740, the tax effects of transactions with stockholders that result in changes in the tax basis of a company’s assets and liabilities will be recognized in equity. If transactions with stockholders result in the recognition of deferred tax assets from changes in the Company’s tax basis of assets and liabilities, the valuation allowance initially required upon recognition of these deferred assets will be recorded in equity. Subsequent changes in enacted tax rates or any valuation allowance are recorded as a component of income tax expense. | |||||||||||||||||
The Company believes it is more likely than not that it will realize the benefit represented by the deferred tax asset, and, therefore, the Company recorded 85% of this estimated amount of the increase in deferred tax assets as a liability to HFF Holdings under the tax receivable agreement and the remaining 15% of the increase in deferred tax assets directly in additional paid-in capital in stockholders’ equity. | |||||||||||||||||
While the actual amount and timing of payments under the tax receivable agreement depend upon a number of factors, including the amount and timing of taxable income generated in the future, changes in future tax rates, the value of individual assets, the portion of the Company’s payments under the tax receivable agreement constituting imputed interest and increases in the tax basis of the Company’s assets resulting in payments to HFF Holdings, the Company has estimated that the future payments that will be made to HFF Holdings will be $145.1 million, and has recorded this obligation to HFF Holdings as a liability on the consolidated balance sheet. To the extent the Company does not realize all of the tax benefits in future years, this liability to HFF Holdings may be reduced. | |||||||||||||||||
As of March 31, 2014, the Company has made payments to HFF Holdings pursuant to the terms of the tax receivable agreement in an aggregate amount of approximately $41.9 million and the Company anticipates to make a payment of $10.8 million to HFF Holdings in 2014. |
Stockholders_Equity
Stockholders Equity | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Stockholders Equity | ' |
13. Stockholders Equity | |
The Company is authorized to issue 175,000,000 shares of Class A common stock, par value $0.01 per share. Each share of Class A common stock entitles its holder to one vote on all matters to be voted on by stockholders generally. Holders of Class A common stock vote together as a single class on all matters presented to our stockholders for their vote or approval. The Company had issued 38,121,509 and 37,498,796 shares of Class A common stock as of March 31, 2014 and December 31, 2013, respectively. | |
On January 15, 2014, the Company’s board of directors declared a special cash dividend of $1.83 per share of Class A common stock to stockholders of record on January 27, 2014. The aggregate dividend payment was paid on February 6, 2014 and totaled approximately $68.2 million based on the number of shares of Class A common stock then outstanding. Additionally, 42,108 restricted stock units (dividend units) were granted for those unvested and vested but not issued restricted stock units as of the record date of January 27, 2014. These dividend units follow the same vesting terms as the underlying restricted stock units. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
14. Earnings Per Share | |||||||||
The Company’s net income and weighted average shares outstanding for the three month periods ended March 31, 2014 and 2013 consist of the following (dollars in thousands): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2013 | 2012 | ||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Weighted Average Shares Outstanding: | |||||||||
Basic | 37,559,212 | 37,255,604 | |||||||
Diluted | 37,595,392 | 37,481,156 | |||||||
The calculations of basic and diluted net income per share amounts for the three month periods ended March 31, 2014 and 2013 are described and presented below. | |||||||||
Basic Net Income per Share | |||||||||
Numerator — net income for the three month periods ended March 31, 2014 and 2013, respectively. | |||||||||
Denominator — the weighted average shares of Class A common stock for the three month periods ended March 31, 2014 and 2013, including 137,531 and 117,504 restricted stock units that have vested and whose issuance is no longer contingent as of March 31, 2014 and March 31, 2013, respectively. | |||||||||
Diluted Net Income per Share | |||||||||
Numerator — net income for the three month periods ended March 31, 2014 and 2013 as in the basic net income per share calculation described above. | |||||||||
Denominator — the weighted average shares of Class A common stock for the three month periods ended March 31, 2014 and 2013, including 137,531 and 117,504 restricted stock units that have vested and whose issuance is no longer contingent as of March 31, 2014 and March 31, 2013, respectively, plus the dilutive effect of the unvested restricted stock units and stock options. | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic Earnings Per Share of Class A Common Stock | |||||||||
Numerator: | |||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Denominator: | |||||||||
Weighted average number of shares of Class A common stock outstanding | 37,559,212 | 37,255,604 | |||||||
Basic net income per share of Class A common stock | $ | 0.1 | $ | 0.06 | |||||
Diluted Earnings Per Share of Class A Common Stock | |||||||||
Numerator: | |||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Denominator: | |||||||||
Basic weighted average number of shares of Class A common stock | 37,559,212 | 37,255,604 | |||||||
Add—dilutive effect of: | |||||||||
Unvested restricted stock units | 11,219 | 207,228 | |||||||
Stock options | 24,961 | 18,324 | |||||||
Weighted average common shares outstanding — diluted | 37,595,392 | 37,481,156 | |||||||
Diluted earnings per share of Class A common stock | $ | 0.1 | $ | 0.06 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
15. Related Party Transactions | |
The Company made payments on behalf of two affiliates of $213 and $852, respectively, during the three month period ended March 31, 2014. The Company made payments on behalf of two affiliates of $29,003 and $238, respectively, during the three month period ended March 31, 2013. These payments by the Company are primarily for professional services fees and other miscellaneous operating expenses on behalf of the affiliates. The Company had a net receivable from affiliates of $1,000 and zero at March 31, 2014 and December 31, 2013, respectively. | |
As a result of the Company’s initial public offering, the Company entered into a tax receivable agreement with HFF Holdings that provides for the payment by the Company to HFF Holdings of 85% of the amount of the cash savings in U.S. federal, state and local income tax that the Company actually realizes as a result of the increase in tax basis of the assets owned by HFF LP and HFF Securities and as a result of certain other tax benefits arising from entering into the tax receivable agreement and making payments under that agreement. As members of HFF Holdings, each of Mark Gibson, the Company’s chief executive officer, Jody Thornton, the Company’s president and member of the Company’s board of directors and a transaction professional of the Operating Partnerships, John Fowler, a current director emeritus of the Company’s board of directors and a transaction professional of the Operating Partnerships and H. Scott Galloway, Matthew D. Lawton, Gerard T. Sansosti and Manuel A. de Zarraga, each an Executive Managing Director and a transaction professional of the Operating Partnerships, is entitled to participate in such payments, in each case on a pro rata basis based upon such person’s ownership of interests in each series of tax receivable payments created by the initial public offering or subsequent exchange of Operating Partnership units. The Company retains the remaining 15% of cash savings in income tax that it realizes. For purposes of the tax receivable agreement, cash savings in income tax is computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of HFF LP and HFF Securities allocable to the Company as a result of the initial sale and later exchanges and had the Company not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the offering and will continue until all such tax benefits have been utilized or have expired. See Note 12 for further information regarding the tax receivable agreement and Note 16 for the amount recorded in relation to this agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
16. Commitments and Contingencies | |
The Company is obligated, pursuant to its tax receivable agreement with HFF Holdings, to pay to HFF Holdings 85% of the amount of cash savings in U.S. federal, state and local income tax that the Company actually realizes as a result of the increases in tax basis under Section 754 and as a result of certain other tax benefits arising from the Company entering into the tax receivable agreement and making payments under that agreement. The Company has recorded $145.1 million for this obligation to HFF Holdings as a liability on the consolidated balance sheet as of March 31, 2014. | |
In recent years, the Company has entered into arrangements with newly-hired producers whereby these producers would be paid additional compensation if certain performance targets are met over a defined period. These payments will be made to the producers only if they enter into an employment agreement at the end of the performance period. Payments under these arrangements, if earned, would be paid in fiscal years 2014 through 2018. Currently, the Company cannot reasonably estimate the amounts that would be payable under all of these arrangements. The Company begins to accrue for these payments when it is deemed probable that payments will be made; therefore, on a quarterly basis, the Company evaluates the probability of each of the producers achieving the performance targets and the probability of each of the producers signing an employment agreement. As of March 31, 2014, there is no accrual for these arrangements on the consolidated balance sheet. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements of the Company as of March 31, 2014 and December 31, 2013 and for the three month periods ended March 31, 2014 and March 31, 2013, include the accounts of HFF LP, HFF Securities, and the Company’s wholly-owned subsidiaries, Holliday GP and HoldCo LLC. All significant intercompany accounts and transactions have been eliminated. | |
The purchase of shares of Holliday GP and partnership units in each of the Operating Partnerships are treated as a reorganization under common control for financial reporting purposes. HFF Holdings owned 100% of Holliday GP, HFF LP Acquisition, LLC, a Delaware limited liability company (“Holdings Sub”), and the Operating Partnerships prior to the Reorganization Transactions. The initial purchase of shares of Holliday GP and the initial purchase of units in the Operating Partnerships were accounted for at historical cost, with no change in basis for financial reporting purposes. Accordingly, the net assets of HFF Holdings purchased by the Company are reported in the consolidated financial statements of the Company at HFF Holdings’ historical cost. | |
As the sole stockholder of Holliday GP (the sole general partner of the Operating Partnerships), the Company now operates and controls all of the business and affairs of the Operating Partnerships. The Company consolidates the financial results of the Operating Partnerships, and the prior ownership interest of HFF Holdings in the Operating Partnerships was treated as a noncontrolling interest in the Company’s consolidated financial statements. HFF Holdings, through its wholly-owned subsidiary (Holdings Sub), and the Company through its wholly-owned subsidiaries (HoldCo LLC and Holliday GP), were the only partners of the Operating Partnerships following the Reorganization Transactions. As of August 31, 2012, HFF Holdings had exchanged all of its remaining interests in the Operating Partnerships and, therefore, the Company, through its wholly-owned subsidiaries, became and continues to be the only equity holder of the Operating Partnerships. | |
Fair Value Measurement | ' |
ASC Topic 820, Fair Value Measurement (ASC 820) establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: Level 1 inputs which are quoted market prices in active markets for identical assets or liabilities; Level 2 inputs which are observable market-based inputs or unobservable inputs corroborated by market data for the asset or liability; and Level 3 inputs which are unobservable inputs based on our own assumptions that are not corroborated by market data. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |
Financial Instruments | ' |
FASB ASC Topic 825, Financial Instruments also requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments, excluding those included in the preceding fair value tables above, are as follows: | |
Cash and Cash Equivalents: These balances include cash and cash equivalents with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments; these are considered Level 1 fair values. | |
Warehouse line of credit: Due to the short-term nature and variable interest rates of this instrument, fair value approximates carrying value; these are considered Level 2 fair values. | |
Contingencies | ' |
The Company is party to various litigation matters, in most cases involving ordinary course and routine claims incidental to its business. The Company cannot estimate with certainty its ultimate legal and financial liability with respect to any pending matters. In accordance with ASC 450, Contingencies, a reserve for estimated losses is recorded when the amount is probable and can be reasonably estimated. However, the Company does not believe, based on examination of such pending matters, that a material loss related to these matters is reasonably possible. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property and Equipment | ' | ||||||||
Property and equipment consist of the following (dollars in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 5,225 | $ | 5,066 | |||||
Computer equipment | 1,058 | 970 | |||||||
Capitalized software costs | 535 | 530 | |||||||
Leasehold improvements | 7,962 | 7,786 | |||||||
Subtotal | 14,780 | 14,352 | |||||||
Less accumulated depreciation and amortization | (8,209 | ) | (7,766 | ) | |||||
$ | 6,571 | $ | 6,586 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Intangible Assets | ' | ||||||||||||||||||||||||
The Company’s intangible assets are summarized as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Book | Carrying | Amortization | Book | ||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Mortgage servicing rights | $ | 34,892 | $ | (18,191 | ) | $ | 16,701 | $ | 34,100 | $ | (17,424 | ) | $ | 16,676 | |||||||||||
Unamortizable intangible assets: | |||||||||||||||||||||||||
FINRA license | 100 | — | 100 | 100 | — | 100 | |||||||||||||||||||
Total intangible assets | $ | 34,992 | $ | (18,191 | ) | $ | 16,801 | $ | 34,200 | $ | (17,424 | ) | $ | 16,776 | |||||||||||
Summary of Carrying and Fair Value of Mortgage Servicing Rights | ' | ||||||||||||||||||||||||
Changes in the carrying value of mortgage servicing rights for the three month periods ended March 31, 2014 and 2013, and the fair value at the end of each period were as follows (dollars in thousands): | |||||||||||||||||||||||||
Category | 12/31/13 | Capitalized | Amortized | Sold / | 3/31/14 | ||||||||||||||||||||
Transferred | |||||||||||||||||||||||||
Freddie Mac | $ | 3,730 | $ | 823 | $ | (588 | ) | $ | (408 | ) | $ | 3,557 | |||||||||||||
CMBS | 10,978 | 219 | (627 | ) | 326 | 10,896 | |||||||||||||||||||
Life company | 1,537 | 610 | (287 | ) | (6 | ) | 1,854 | ||||||||||||||||||
Life company – limited | 431 | 25 | (62 | ) | — | 394 | |||||||||||||||||||
Total | $ | 16,676 | $ | 1,677 | $ | (1,564 | ) | $ | (88 | ) | $ | 16,701 | |||||||||||||
Category | 12/31/12 | Capitalized | Amortized | Sold / | 3/31/13 | ||||||||||||||||||||
Transferred | |||||||||||||||||||||||||
Freddie Mac | $ | 7,641 | $ | 935 | $ | (387 | ) | $ | (1,288 | ) | $ | 6,901 | |||||||||||||
CMBS | 7,838 | 170 | (427 | ) | 1,005 | 8,586 | |||||||||||||||||||
Life company | 2,021 | 165 | (305 | ) | — | 1,881 | |||||||||||||||||||
Life company – limited | 299 | 54 | (41 | ) | — | 312 | |||||||||||||||||||
Total | $ | 17,799 | $ | 1,324 | $ | (1,160 | ) | $ | (283 | ) | $ | 17,680 | |||||||||||||
Summary of Estimated Amortization Expense | ' | ||||||||||||||||||||||||
Estimated amortization expense for the next five years is as follows (dollars in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 3,435 | |||||||||||||||||||||||
2015 | 3,800 | ||||||||||||||||||||||||
2016 | 2,970 | ||||||||||||||||||||||||
2017 | 2,100 | ||||||||||||||||||||||||
2018 | 1,585 | ||||||||||||||||||||||||
2019 | 1,124 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Assets Accounted at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2014 (in thousands): | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 76,925 | $ | — | $ | 76,925 | $ | — | |||||||||
Mortgage servicing rights | 16,701 | — | — | 20,651 | |||||||||||||
Total nonrecurring fair value measurements | $ | 93,626 | $ | — | $ | 76,925 | $ | 20,651 | |||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 93,587 | $ | — | $ | 93,587 | $ | — | |||||||||
Mortgage servicing rights | 16,676 | — | — | 20,258 | |||||||||||||
Total nonrecurring fair value measurements | $ | 110,263 | — | $ | 93,587 | $ | 20,258 | ||||||||||
Significant Assumptions Utilized to Value Servicing Rights | ' | ||||||||||||||||
The significant assumptions utilized to value servicing rights as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Expected life of cash flows | 3 years to 10 years | 3 years to 10 years | |||||||||||||||
Discount rate (1) | 15% to 20% | 15% to 20% | |||||||||||||||
Prepayment rate | 0% to 8% | 0% to 8% | |||||||||||||||
Inflation rate | 2% | 2% | |||||||||||||||
Cost of service per loan | $ | 1,600 to $3,983 | $ | 1,600 to $4,421 | |||||||||||||
-1 | Reflects the time value of money and the risk of future cash flows related to the possible cancellation of servicing contracts, transferability restrictions on certain servicing contracts, concentration in the life company portfolio and large loan risk. |
Capital_Lease_Obligations_Tabl
Capital Lease Obligations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Summary of Capital Lease Obligations | ' | ||||||||
Capital lease obligations consist of the following at March 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Capital lease obligations | $ | 426 | $ | 443 | |||||
Less current maturities | 240 | 258 | |||||||
$ | 186 | $ | 185 | ||||||
Summary of Future Minimum Lease Payments Under Capital Leases | ' | ||||||||
A summary of future minimum lease payments under capital leases at March 31, 2014 is as follows (dollars in thousands): | |||||||||
Remainder of 2014 | $ | 200 | |||||||
2015 | 139 | ||||||||
2016 | 78 | ||||||||
2017 | 9 | ||||||||
2018 | — | ||||||||
$ | 426 | ||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Text Block [Abstract] | ' | ||||
Summary of Future Minimum Rental Payments | ' | ||||
Future minimum rental payments for the next five years under operating leases with noncancelable terms in excess of one year and without regard to early termination provisions are as follows (dollars in thousands): | |||||
Remainder of 2014 | $ | 4,808 | |||
2015 | 5,942 | ||||
2016 | 5,176 | ||||
2017 | 4,563 | ||||
2018 | 3,651 | ||||
2019 | 2,971 | ||||
Thereafter | 4,660 | ||||
$ | 31,771 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Income Tax Expense Includes Current and Deferred Taxes | ' | ||||||||||||||||
Income tax expense includes current and deferred taxes as follows (dollars in thousands): | |||||||||||||||||
Current | Deferred | Total | |||||||||||||||
Three Months Ended March 31, 2014: | |||||||||||||||||
Federal | $ | — | $ | 2,544 | $ | 2,544 | |||||||||||
State | 100 | 871 | 971 | ||||||||||||||
$ | 100 | $ | 3,415 | $ | 3,515 | ||||||||||||
Current | Deferred | Total | |||||||||||||||
Three Months Ended March 31, 2013: | |||||||||||||||||
Federal | $ | — | $ | 1,672 | $ | 1,672 | |||||||||||
State | (97 | ) | 166 | 69 | |||||||||||||
$ | (97 | ) | $ | 1,838 | $ | 1,741 | |||||||||||
Summary of Reconciliation Between Income Taxes | ' | ||||||||||||||||
The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the effective tax rate on net income is as follows for the three months ended March 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income tax expense / (benefit) | Rate | Rate | |||||||||||||||
Taxes computed at federal rate | $ | 2,528 | 35 | % | $ | 1,420 | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 336 | 4.7 | % | 249 | 6.1 | % | |||||||||||
Effect of deferred tax rate change | 590 | 8.2 | % | — | 0 | % | |||||||||||
Change in income tax benefit payable to stockholder | (15 | ) | (0.2 | )% | — | 0 | % | ||||||||||
Compensation limitation | 7 | 0.1 | % | 34 | 0.8 | % | |||||||||||
Meals and entertainment | 72 | 1 | % | 37 | 0.9 | % | |||||||||||
Other | (3 | ) | (0.1 | )% | 1 | 0 | % | ||||||||||
Income tax expense | $ | 3,515 | 48.7 | % | $ | 1,741 | 42.9 | % | |||||||||
Summary of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||||||
Deferred income tax assets and liabilities consist of the following at March 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Section 754 election tax basis step-up | $ | 154,860 | $ | 158,229 | |||||||||||||
Tenant improvements | 2,596 | 2,522 | |||||||||||||||
Net operating loss carryforward | 7,367 | 379 | |||||||||||||||
Restricted stock units | 1,818 | 5,271 | |||||||||||||||
Compensation | 1,103 | 3,805 | |||||||||||||||
Intangible asset | 500 | 510 | |||||||||||||||
Tax credits | 123 | 123 | |||||||||||||||
Other | 400 | 348 | |||||||||||||||
Deferred income tax asset | 168,767 | 171,187 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Goodwill | (1,277 | ) | (1,277 | ) | |||||||||||||
Servicing rights | (6,342 | ) | (6,332 | ) | |||||||||||||
Deferred rent | (1,922 | ) | (1,892 | ) | |||||||||||||
Investment in partnership | (587 | ) | (587 | ) | |||||||||||||
Deferred income tax liability | (10,128 | ) | (10,088 | ) | |||||||||||||
Net deferred income tax asset | $ | 158,639 | $ | 161,099 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Summary of Net Income and Weighted Average Shares Outstanding | ' | ||||||||
The Company’s net income and weighted average shares outstanding for the three month periods ended March 31, 2014 and 2013 consist of the following (dollars in thousands): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2013 | 2012 | ||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Weighted Average Shares Outstanding: | |||||||||
Basic | 37,559,212 | 37,255,604 | |||||||
Diluted | 37,595,392 | 37,481,156 | |||||||
Summary of Calculations of Basic and Diluted Net Income per Share | ' | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic Earnings Per Share of Class A Common Stock | |||||||||
Numerator: | |||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Denominator: | |||||||||
Weighted average number of shares of Class A common stock outstanding | 37,559,212 | 37,255,604 | |||||||
Basic net income per share of Class A common stock | $ | 0.1 | $ | 0.06 | |||||
Diluted Earnings Per Share of Class A Common Stock | |||||||||
Numerator: | |||||||||
Net income | $ | 3,707 | $ | 2,316 | |||||
Denominator: | |||||||||
Basic weighted average number of shares of Class A common stock | 37,559,212 | 37,255,604 | |||||||
Add—dilutive effect of: | |||||||||
Unvested restricted stock units | 11,219 | 207,228 | |||||||
Stock options | 24,961 | 18,324 | |||||||
Weighted average common shares outstanding — diluted | 37,595,392 | 37,481,156 | |||||||
Diluted earnings per share of Class A common stock | $ | 0.1 | $ | 0.06 |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Feb. 21, 2007 | Feb. 05, 2007 | Jan. 30, 2007 | Nov. 09, 2006 | Mar. 31, 2014 | |
Office | Holliday GP [Member] | HFF LP Acquisition, LLC [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | |
Class A Common Stock [Member] | Class A Common Stock [Member] | Common Class B [Member] | |||||||||
HFF Holdings [Member] | |||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offices in the United States | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common share proposed for public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,300,000 | ' |
Common stock, shares authorized | ' | ' | ' | 175,000,000 | 175,000,000 | ' | ' | ' | 14,300,000 | ' | ' |
Initial public offering price, per share | ' | ' | ' | ' | ' | ' | ' | ' | $18 | ' | ' |
Percentage of shares purchase from Partners | ' | ' | ' | ' | ' | 44.70% | 5.80% | 38.90% | ' | ' | ' |
Number of share option exercised | ' | ' | ' | ' | ' | ' | 2,145,000 | ' | ' | ' | ' |
Percentage of shares option exercised | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Per share price, exercised | ' | ' | ' | ' | ' | ' | $18 | ' | ' | ' | ' |
Sale of common stock, Shares | ' | ' | ' | 38,121,509 | 37,498,796 | ' | ' | ' | ' | ' | 1 |
Percentage of shares held by the Company | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Compensation_Additional_
Stock Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock compensation cost | $4,745,000 | $2,530,000 |
Unrecognized compensation cost related to non-vested restricted stock units | 23,300,000 | ' |
Weighted average contractual term | '4 years 2 months 12 days | ' |
Restricted stock units outstanding | 898,645 | ' |
Costs recognized in income associated with restricted stock units | 3,300,000 | 1,900,000 |
Options, granted | 0 | ' |
Options, vested | 0 | ' |
Options, exercised | 0 | ' |
Options, forfeited | 0 | ' |
Class A Common Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Restricted stock units converted to Class A common stock | 622,713 | ' |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Costs recognized in income associated with restricted stock units | 3,800,000 | 2,400,000 |
Restricted stock units, granted | 983,809 | 213,158 |
Restricted stock units, forfeited | 0 | ' |
Restricted stock units, vested, aggregate fair value | 4,600,000 | ' |
Number of restricted stock units to which costs recognized in income associated with | 190,007 | ' |
Accrued incentive compensation reclassified to additional paid-in-capital | $2,400,000 | $3,800,000 |
Restricted Stock [Member] | Class A Common Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Restricted stock units, vested | 629,826 | ' |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Plant Equipment Gross | $14,780 | $14,352 |
Less accumulated depreciation and amortization | -8,209 | -7,766 |
Property, plan, and equipment, net | 6,571 | 6,586 |
Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Plant Equipment Gross | 5,225 | 5,066 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Plant Equipment Gross | 1,058 | 970 |
Capitalized Software Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Plant Equipment Gross | 535 | 530 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Plant Equipment Gross | $7,962 | $7,786 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Office Equipment [Member] | Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Capital leased office equipment recorded in furniture and equipment | $14,780 | $14,352 | $1,000 | $1,100 |
Accumulated depreciation and amortization of capital leased office equipment included in consolidated statements | $8,209 | $7,766 | $600 | $700 |
Intangible_Assets_Summary_of_I
Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total Intangible Assets Gross carrying Amount | $34,992 | $34,200 |
Accumulated Amortization | -18,191 | -17,424 |
Total intangible assets Net Book Value | 16,801 | 16,776 |
Mortgage Servicing Rights [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 34,892 | 34,100 |
Accumulated Amortization | -18,191 | -17,424 |
Net Book Value | 16,701 | 16,676 |
FINRA License [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 100 | 100 |
Accumulated Amortization | ' | ' |
Net Book Value | $100 | $100 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Commercial loans serviced by the Company | $34,900,000,000 | ' | $33,100,000,000 | ' |
Servicing fees and interest earned | 4,000,000 | 3,900,000 | ' | ' |
Mortgage servicing rights | 16,701,000 | 17,680,000 | 16,676,000 | 17,799,000 |
Loan served for mortgage servicing rights | 29,200,000,000 | ' | 27,000,000,000 | ' |
Gain on sale of cashiering portion | 300,000 | 900,000 | ' | ' |
Amortization expenses | 1,564,000 | 1,160,000 | ' | ' |
Weighted-average life of mortgage servicing rights | '5 years 8 months 12 days | ' | ' | ' |
Freddie Mac [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Mortgage servicing rights | 3,557,000 | 6,901,000 | 3,730,000 | 7,641,000 |
Mortgage servicing rights retained upon sale | 800,000 | 900,000 | ' | ' |
Originated loans, net | 307,400,000 | 359,200,000 | ' | ' |
Securitization compensation received | 300,000 | 1,200,000 | ' | ' |
Amortization expenses | 1,600,000 | 1,200,000 | ' | ' |
CMBS [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Mortgage servicing rights | 10,896,000 | 8,586,000 | 10,978,000 | 7,838,000 |
Mortgage servicing rights acquired without exchange of initial consideration | 900,000 | ' | ' | ' |
Initial consideration, net | 2,100,000,000 | ' | ' | ' |
Life Company Tranches [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Mortgage servicing rights acquired without exchange of initial consideration | 400,000 | ' | ' | ' |
Initial consideration, net | $1,100,000,000 | ' | ' | ' |
Intangible_Assets_Summary_of_C
Intangible Assets - Summary of Carrying and Fair Value of Mortgage Servicing Rights (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Opening Balance | $16,676 | $17,799 |
Capitalized | 1,677 | 1,324 |
Amortized | -1,564 | -1,160 |
Sold/Transferred | -88 | -283 |
Closing Balance | 16,701 | 17,680 |
Freddie Mac [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Opening Balance | 3,730 | 7,641 |
Capitalized | 823 | 935 |
Amortized | -588 | -387 |
Sold/Transferred | -408 | -1,288 |
Closing Balance | 3,557 | 6,901 |
CMBS [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Opening Balance | 10,978 | 7,838 |
Capitalized | 219 | 170 |
Amortized | -627 | -427 |
Sold/Transferred | 326 | 1,005 |
Closing Balance | 10,896 | 8,586 |
Life Company [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Opening Balance | 1,537 | 2,021 |
Capitalized | 610 | 165 |
Amortized | -287 | -305 |
Sold/Transferred | -6 | ' |
Closing Balance | 1,854 | 1,881 |
Life Company - Limited [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Opening Balance | 431 | 299 |
Capitalized | 25 | 54 |
Amortized | -62 | -41 |
Sold/Transferred | ' | ' |
Closing Balance | $394 | $312 |
Intangible_Assets_Summary_of_E
Intangible Assets - Summary of Estimated Amortization Expense (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ' |
Remainder of 2014 | $3,435 |
2015 | 3,800 |
2016 | 2,970 |
2017 | 2,100 |
2018 | 1,585 |
2019 | $1,124 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (Fair Value Recurring [Member], USD $) | Mar. 31, 2014 |
Fair Value Recurring [Member] | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' |
Assets at fair value | $0 |
Liabilities at fair value | $0 |
Fair_Value_Measurement_Financi
Fair Value Measurement - Financial Assets Accounted at Fair Value on Nonrecurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Mortgage servicing rights | $16,701 | $16,676 | $17,680 | $17,799 |
Carrying Value [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Mortgage notes receivable | 76,925 | 93,587 | ' | ' |
Mortgage servicing rights | 16,701 | 16,676 | ' | ' |
Total nonrecurring fair value measurements | 93,626 | 110,263 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Mortgage notes receivable | ' | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' | ' |
Total nonrecurring fair value measurements | ' | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Mortgage notes receivable | 76,925 | 93,587 | ' | ' |
Mortgage servicing rights | ' | ' | ' | ' |
Total nonrecurring fair value measurements | 76,925 | 93,587 | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Mortgage notes receivable | ' | ' | ' | ' |
Mortgage servicing rights | 20,651 | 20,258 | ' | ' |
Total nonrecurring fair value measurements | $20,651 | $20,258 | ' | ' |
Fair_Value_Measurement_Signifi
Fair Value Measurement - Significant Assumptions Utilized to Value Servicing Rights (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | |||
Minimum [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Expected life of cash flows | '3 years | '3 years | ||
Discount rate | 15.00% | [1] | 15.00% | [1] |
Prepayment rate | 0.00% | 0.00% | ||
Cost of service per loan | $1,600 | $1,600 | ||
Maximum [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Expected life of cash flows | '10 years | '10 years | ||
Discount rate | 20.00% | [1] | 20.00% | [1] |
Prepayment rate | 8.00% | 8.00% | ||
Inflation rate | 2.00% | 2.00% | ||
Cost of service per loan | $3,983 | $4,421 | ||
[1] | Reflects the time value of money and the risk of future cash flows related to the possible cancellation of servicing contracts, transferability restrictions on certain servicing contracts, concentration in the life company portfolio and large loan risk. |
Capital_Lease_Obligations_Summ
Capital Lease Obligations - Summary of Capital Lease Obligations (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Lease Obligations [Abstract] | ' | ' |
Capital lease obligations | $426 | $443 |
Less current maturities | 240 | 258 |
Capital lease obligations, non current maturities | $186 | $185 |
Capital_Lease_Obligation_Addit
Capital Lease Obligation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Leases [Abstract] | ' |
Lease Expiration Date | 30-Apr-17 |
Capital_Lease_Obligation_Summa
Capital Lease Obligation - Summary of Future Minimum Lease Payments Under Capital Leases (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Leases Future Minimum Payments Due [Abstract] | ' |
Remainder of 2014 | $200 |
2015 | 139 |
2016 | 78 |
2017 | 9 |
2018 | ' |
Total | $426 |
Warehouse_Line_of_Credit_Addit
Warehouse Line of Credit - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | 31-May-13 | 31-May-13 |
Warehouse_Line_of_Credit | PNC Bank, N.A. [Member] | Huntington Bank [Member] | Maximum [Member] | Minimum [Member] | ||
Huntington Bank [Member] | Huntington Bank [Member] | |||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Number of warehouse line of credit facilities | 2 | ' | ' | ' | ' | ' |
Uncommitted financing arrangement | ' | ' | $350 | $125 | ' | ' |
Net increase in amount | ' | ' | ' | ' | 125 | 75 |
Warehouse line of credit outstanding amount | $76.90 | $93.60 | ' | ' | ' | ' |
Line of credit interest rate at the end of the period | 0.15% | 0.17% | ' | ' | ' | ' |
LIBOR rate duration period | '30 days | ' | ' | ' | ' | ' |
Line of credit interest rate description | 'Interest on the warehouse lines of credit is at the 30-day LIBOR rate (0.15% and 0.17% at March 31, 2014 and December 31, 2013, respectively) plus a spread. HFF LP is also paid interest on its loan secured by a multifamily loan at the rate in the Freddie Mac note. | ' | ' | ' | ' | ' |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Leased Assets [Line Items] | ' | ' |
Total rental expense | $1.90 | $1.70 |
Lease expiration date | '2017 | ' |
Maximum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease terms | '10 years | ' |
Reduced operating lease terms | '7 years | ' |
Minimum [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating lease terms | '1 year | ' |
Reduced operating lease terms | '2 years | ' |
Lease_Commitments_Summary_of_F
Lease Commitments - Summary of Future Minimum Rental Payments (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
Remainder of 2014 | $4,808 |
2015 | 5,942 |
2016 | 5,176 |
2017 | 4,563 |
2018 | 3,651 |
2019 | 2,971 |
Thereafter | 4,660 |
Total rental payment due, net | $31,771 |
Servicing_Additional_Informati
Servicing - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Transfers And Servicing [Abstract] | ' | ' |
Unpaid principal balance of servicing portfolio of commercial real estate loan | $34,900,000,000 | $33,100,000,000 |
Funds held in escrow | $141,500,000 | $211,100,000 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense Includes Current and Deferred Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Current Federal Tax | ' | ' |
State Current Tax | 100 | -97 |
Federal and State Current Total | 100 | -97 |
Federal Deferred Tax | 2,544 | 1,672 |
State Deferred Tax | 871 | 166 |
Federal and State Deferred Total | 3,415 | 1,838 |
Federal Current and Deferred Total | 2,544 | 1,672 |
State Current and Deferred Total | 971 | 69 |
Income tax expense | $3,515 | $1,741 |
Income_Taxes_Summary_of_Income1
Income Taxes - Summary of Income Tax Expense Allocation (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Taxes computed at federal rate | $2,528 | $1,420 |
State and local taxes, net of federal tax benefit | 336 | 249 |
Effect of deferred tax rate change | 590 | ' |
Change in income tax benefit payable to stockholder | -15 | ' |
Compensation limitation | 7 | 34 |
Meals and entertainment | 72 | 37 |
Other | -3 | 1 |
Income tax expense | $3,515 | $1,741 |
Taxes computed at federal rate, Percentage | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit, Percentage | 4.70% | 6.10% |
Effect of deferred tax rate change, Percentage | 8.20% | 0.00% |
Change in income tax benefit payable to stockholder, Percentage | -0.20% | 0.00% |
Compensation limitation, Percentage | 0.10% | 0.80% |
Meals and entertainment, Percentage | 1.00% | 0.90% |
Other, Percentage | -0.10% | 0.00% |
Income tax expense, Total Percentage | 48.70% | 42.90% |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Section 754 election tax basis step-up | $154,860 | $158,229 |
Tenant improvements | 2,596 | 2,522 |
Net operating loss carryforward | 7,367 | 379 |
Restricted stock units | 1,818 | 5,271 |
Compensation | 1,103 | 3,805 |
Intangible asset | 500 | 510 |
Tax credits | 123 | 123 |
Other | 400 | 348 |
Deferred income tax asset | 168,767 | 171,187 |
Deferred income tax liabilities: | ' | ' |
Goodwill | -1,277 | -1,277 |
Servicing rights | -6,342 | -6,332 |
Deferred rent | -1,922 | -1,892 |
Investment in partnership | -587 | -587 |
Deferred income tax liability | -10,128 | -10,088 |
Net deferred income tax asset | $158,639 | $161,099 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule Of Income Taxes [Line Items] | ' | ' |
Deferred annual pre-tax benefit | $32,800,000 | ' |
Operating loss carried back date | '2 years | ' |
Operating loss carried forward date | '20 years | ' |
Assumed revenue generated in each year | 268,000,000 | ' |
Federal and state tax effected net operating loss carryforwards | 7,400,000 | ' |
Interest or penalties | 0 | 0 |
Future tax benefits | 154,900,000 | ' |
Increase in deferred tax assets, percentage | 85.00% | ' |
Increase in deferred tax assets additional paid-in capital in stockholders equity , percentage | 15.00% | ' |
Company estimated payments made to HFF Holdings | 145,100,000 | ' |
HFF Holdings [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Amount of cash savings to HFF holdings | 85.00% | ' |
Term of tax receivable agreement in aggregate amount paid | 41,900,000 | ' |
Anticipated amount to be paid under tax receivable agreement to HFF Holdings 2014 | $10,800,000 | ' |
Federal [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Amount of cash savings to HFF holdings | 85.00% | ' |
State and Local Income Tax [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Amount of cash savings to HFF holdings | 85.00% | ' |
Minimum [Member] | Federal [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Net operating loss carry forwards expiration dates | '2028 | ' |
Minimum [Member] | State and Local Income Tax [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Net operating loss carry forwards expiration dates | '2020 | ' |
Maximum [Member] | Federal [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Net operating loss carry forwards expiration dates | '2031 | ' |
Maximum [Member] | State and Local Income Tax [Member] | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' |
Net operating loss carry forwards expiration dates | '2031 | ' |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (Class A Common Stock [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 06, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 06, 2014 | Jan. 15, 2014 |
In Millions, except Share data, unless otherwise specified | Restricted Stock [Member] | HFF Inc [Member] | HFF Inc [Member] | HFF Holdings [Member] | HFF Holdings [Member] | ||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 175,000,000 | 175,000,000 | ' | 175,000,000 | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' |
Common stock, shares issued | 38,121,509 | 37,498,796 | ' | 38,121,509 | 37,498,796 | ' | ' |
Special cash dividend | ' | ' | ' | ' | ' | ' | $1.83 |
Aggregate dividend paid | ' | ' | ' | ' | ' | $68.20 | ' |
Restricted stock granted for unvested and vested | ' | ' | 42,108 | ' | ' | ' | ' |
Earning_Per_Share_Summary_of_N
Earning Per Share - Summary of Net Income and Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $3,707 | $2,316 |
Weighted Average Shares Outstanding: | ' | ' |
Basic | 37,559,212 | 37,255,604 |
Diluted | 37,595,392 | 37,481,156 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Restricted Stock [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Restricted Stock [Member] | ' | ' |
Earnings Per Share [Line Items] | ' | ' |
Restricted stock units Included in weighted average shares | 137,531 | 117,504 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Calculations of Basic and Diluted Net Income per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income | $3,707 | $2,316 |
Denominator: | ' | ' |
Basic weighted average number of shares of Class A common stock | 37,559,212 | 37,255,604 |
Add-dilutive effect of: | ' | ' |
Weighted average common shares outstanding - diluted | 37,595,392 | 37,481,156 |
Basic net income per share of Class A common stock | $0.10 | $0.06 |
Diluted earnings per share of Class A common stock | $0.10 | $0.06 |
Basic Earning Per Share [Member] | Class A Common Stock [Member] | ' | ' |
Numerator: | ' | ' |
Net income | 3,707 | 2,316 |
Denominator: | ' | ' |
Basic weighted average number of shares of Class A common stock | 37,559,212 | 37,255,604 |
Add-dilutive effect of: | ' | ' |
Basic net income per share of Class A common stock | $0.10 | $0.06 |
Diluted Earnings Per Share [Member] | Class A Common Stock [Member] | ' | ' |
Numerator: | ' | ' |
Net income | $3,707 | $2,316 |
Denominator: | ' | ' |
Basic weighted average number of shares of Class A common stock | 37,559,212 | 37,255,604 |
Add-dilutive effect of: | ' | ' |
Unvested restricted stock units | 11,219 | 207,228 |
Stock options | 24,961 | 18,324 |
Weighted average common shares outstanding - diluted | 37,595,392 | 37,481,156 |
Diluted earnings per share of Class A common stock | $0.10 | $0.06 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
Affiliates | Affiliate 1 [Member] | Affiliate 1 [Member] | Affiliate 2 [Member] | Affiliate 2 [Member] | HFF Holdings [Member] | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of affiliates on behalf payment made | 2 | ' | ' | ' | ' | ' | ' |
Payments on behalf of affiliates | ' | ' | $213 | $29,003 | $852 | $238 | ' |
Net receivable from affiliates | $1,000 | $0 | ' | ' | ' | ' | ' |
Percentage of tax receivable agreement | ' | ' | ' | ' | ' | ' | 85.00% |
Percentage of retained cash savings in income tax | 15.00% | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Minimum [Member] | Maximum [Member] | HFF Holdings [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | ' | ' | ' | ' | ' |
Amount of cash savings to HFF holdings | ' | ' | ' | ' | 85.00% |
Liability to HFF Holdings | $10,128,000 | $10,088,000 | ' | ' | $145,100,000 |
Payments under compensation arrangement, Period | ' | ' | '2014 | '2018 | ' |
Accrued additional compensation to newly hired producers | $0 | ' | ' | ' | ' |