Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HF | |
Entity Registrant Name | HFF, Inc. | |
Entity Central Index Key | 1,380,509 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Class A Shares Outstanding | 39,110,155 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 191,084 | $ 272,801 |
Restricted Cash | 1,744 | 4,001 |
Accounts receivable | 6,839 | 2,272 |
Mortgage notes receivable | 961,720 | 450,821 |
Prepaid taxes | 972 | 978 |
Prepaid expenses and other current assets | 15,667 | 16,575 |
Total current assets | 1,178,026 | 747,448 |
Property and equipment, net | 17,263 | 17,897 |
Deferred tax asset, net | 50,208 | 50,874 |
Goodwill | 8,809 | 8,688 |
Intangible assets, net | 61,675 | 58,837 |
Other noncurrent assets | 7,302 | 8,461 |
Total Assets | 1,323,283 | 892,205 |
Current liabilities: | ||
Current portion of long-term debt | 260 | 269 |
Warehouse line of credit | 958,841 | 450,255 |
Accrued compensation and related taxes | 34,274 | 52,574 |
Accounts payable | 1,787 | 3,527 |
Payable under tax receivable agreement | 11,838 | 11,838 |
Other current liabilities | 21,059 | 25,338 |
Total current liabilities | 1,028,059 | 543,801 |
Deferred rent credit | 12,391 | 12,700 |
Payable under the tax receivable agreement, less current portion | 49,101 | 49,101 |
Long-term debt, less current portion | 83 | 136 |
Total liabilities | 1,089,634 | 605,738 |
Stockholders' equity: | ||
Treasury stock, 38,584 and 163,154 shares at cost, respectively | (1,799) | (4,971) |
Additional paid-in-capital | 140,878 | 144,304 |
Accumulated other comprehensive income | 666 | 171 |
Retained earnings | 93,513 | 146,576 |
Total equity | 233,649 | 286,467 |
Total liabilities and stockholders' equity | 1,323,283 | 892,205 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Class A common stock, par value $0.01 per share, 175,000,000 authorized; 39,141,404 and 38,742,698 shares issued, respectively; 39,102,820 and 38,579,544 shares outstanding, respectively | $ 391 | $ 387 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Treasury Stock, Shares | 38,584 | 163,154 |
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 | 39,141,404 | 38,742,698 |
Common stock, shares outstanding | 39,102,820 | 38,579,544 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Capital markets services revenue | $ 125,458 | $ 132,713 |
Interest on mortgage notes receivable | 5,244 | 4,999 |
Other | 916 | 1,094 |
Total revenues | 131,618 | 138,806 |
Expenses | ||
Cost of services | 78,644 | 80,131 |
Personnel | 22,064 | 14,332 |
Occupancy | 3,813 | 4,215 |
Travel and entertainment | 6,382 | 4,709 |
Supplies, research, and printing | 2,191 | 1,768 |
Insurance | 689 | 604 |
Professional fees | 1,670 | 1,906 |
Depreciation and amortization | 5,481 | 3,667 |
Interest on warehouse line of credit | 4,211 | 3,538 |
Other operating | 3,766 | 3,172 |
Total expenses | 128,911 | 118,042 |
Operating income | 2,707 | 20,764 |
Interest and other income, net | 15,171 | 10,794 |
Interest expense | (5) | (7) |
(Increase) decrease in payable under the tax receivable agreement | 0 | 0 |
Income before income taxes | 17,873 | 31,551 |
Income tax expense | 805 | 11,895 |
Net income | 17,068 | 19,656 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 495 | (2) |
Comprehensive income | $ 17,563 | $ 19,654 |
Earnings per share-Basic and Diluted | ||
Earnings per share available to HFF, Inc. common stockholders-Basic | $ 0.44 | $ 0.51 |
Earnings per share available to HFF, Inc. common stockholders-Diluted | $ 0.42 | $ 0.50 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member]Class A Common Stock [Member] | Treasury Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income/(loss) [Member] | Retained Earnings [Member] |
Beginning balance at Dec. 31, 2016 | $ 236,542 | $ 385 | $ (11,477) | $ 132,513 | $ 115,121 | |
Beginning balance, shares at Dec. 31, 2016 | 38,091,123 | 372,325 | ||||
Stock compensation and other, net | 7,265 | 7,822 | (557) | |||
Issuance of Class A common stock, net | $ 2 | $ 12,239 | (12,241) | |||
Issuance of Class A common stock, net, shares | 675,151 | (398,269) | ||||
Repurchase of Class A common stock | (5,850) | $ (5,850) | ||||
Repurchase of Class A common stock, shares | (193,549) | 193,549 | ||||
Foreign currency translation income | (2) | $ (2) | ||||
Dividends paid | (60,017) | 2,943 | (62,960) | |||
Net income | 19,656 | 19,656 | ||||
Ending balance at Mar. 31, 2017 | 197,594 | $ 387 | $ (5,088) | 131,037 | (2) | 71,260 |
Ending balance, shares at Mar. 31, 2017 | 38,572,725 | 167,605 | ||||
Beginning balance at Dec. 31, 2017 | 286,467 | $ 387 | $ (4,971) | 144,304 | 171 | 146,576 |
Beginning balance, shares at Dec. 31, 2017 | 38,579,544 | 163,154 | ||||
Cumulative effect of adoption of new accounting standard | 1,304 | 1,304 | ||||
Stock compensation and other, net | 10,188 | 10,188 | ||||
Issuance of Class A common stock, net | $ 4 | $ 17,273 | (17,277) | |||
Issuance of Class A common stock, net, shares | 822,207 | (423,501) | ||||
Repurchase of Class A common stock | (14,101) | $ (14,101) | ||||
Repurchase of Class A common stock, shares | (298,931) | 298,931 | ||||
Foreign currency translation income | 495 | 495 | ||||
Dividends paid | (67,772) | 3,663 | (71,435) | |||
Net income | 17,068 | 17,068 | ||||
Ending balance at Mar. 31, 2018 | $ 233,649 | $ 391 | $ (1,799) | $ 140,878 | $ 666 | $ 93,513 |
Ending balance, shares at Mar. 31, 2018 | 39,102,820 | 38,584 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 17,068 | $ 19,656 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Stock based compensation | 5,752 | 3,906 |
Deferred taxes | 666 | 10,169 |
Depreciation | 1,100 | 1,001 |
Amortization | 4,381 | 2,665 |
Gain on sale or disposition of assets, net | (8,573) | (7,774) |
Mortgage service rights assumed | (935) | (1,307) |
Increase (decrease) in cash from changes in: | ||
Accounts receivable | (1,960) | (707) |
Mortgage notes receivable | (508,586) | (550,646) |
Net borrowings on warehouse line of credit | 508,586 | 550,646 |
Prepaid taxes, prepaid expenses and other current assets | 914 | 1,710 |
Other noncurrent assets | 1,159 | (2,166) |
Accrued compensation and related taxes | (15,167) | (12,973) |
Accounts payable | (1,740) | (759) |
Other current liabilities | (4,279) | (196) |
Deferred rent | (309) | (130) |
Net cash (used in) provided by operating activities | (1,923) | 13,095 |
Investing activities | ||
Purchases of property and equipment | (490) | (658) |
Purchase of businesses | (6,230) | |
Net cash used in investing activities | (490) | (6,888) |
Financing activities | ||
Payments on long-term debt | (62) | (137) |
Dividends paid | (67,772) | (60,017) |
Treasury stock | (14,101) | (5,850) |
Net cash used in financing activities | (81,935) | (66,004) |
Effects of exchange rate changes on cash and cash equivalents and restricted cash | 374 | (2) |
Net decrease in cash and cash equivalents and restricted cash | (83,974) | (59,799) |
Cash and cash equivalents and restricted cash, beginning of period | 276,802 | 235,582 |
Cash and cash equivalents and restricted cash, end of period | $ 192,828 | $ 175,783 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization HFF, Inc., a Delaware corporation (the “Company”), through its wholly-owned subsidiaries, Holliday Fenoglio Fowler, L.P., a Texas limited partnership (“HFF LP”), HFF Securities L.P., a Delaware limited partnership and registered broker-dealer (“HFF Securities” and together with HFF LP, the “Operating Partnerships”), HFF Real Estate Limited and HFF Securities Limited, in the United Kingdom, is a commercial real estate financial intermediary providing commercial real estate and capital markets services including debt placement, investment advisory, equity placements, investment banking and advisory services, loan sales and loan sale advisory services, commercial loan servicing, and capital markets advice and maintains offices in 25 cities in the United States and effective January 17, 2017, one office in London, United Kingdom. The Company’s operations are impacted by the availability of equity and debt as well as credit and liquidity in the domestic and global capital markets especially in the commercial real estate sector. Significant disruptions or changes in domestic and global capital market flows, as well as credit and liquidity issues in the global and domestic capital markets, regardless of their duration, could adversely affect the supply and demand for capital from investors for commercial real estate investments which could have a significant impact on all of the Company’s capital market services revenues. Initial Public Offering and Reorganization The Company completed its initial public offering (“IPO”) and the Company’s Class A Common Stock began trading on the New York Stock Exchange under the symbol “HF” in the first quarter of 2007. The proceeds of the initial public offering, including the exercise of the underwriter’s option to purchase additional shares, were used to purchase from HFF Holdings LLC, a Delaware limited liability company (“HFF Holdings”), all of the shares of Holliday GP Corp. (“Holliday GP”) and purchase from HFF Holdings partnership units of the Operating Partnerships (including partnership units in the Operating Partnerships held by Holliday GP). HFF Holdings used a portion of its proceeds to repay all outstanding indebtedness under HFF LP’s credit agreement. Accordingly, the Company did not retain any of the proceeds from the initial public offering. In addition to cash received for its sale of all of the shares of Holliday GP and approximately 45% 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 HFF, Inc.’s Class B common stock to HFF Holdings, an exchange right that permitted, subject to certain restrictions, 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 (the “TRA”). See Notes 15 and 16 for further discussion of the tax receivable agreement. As a result of the reorganization in connection with the IPO, the Company became a holding company through a series of transactions pursuant to a sale and purchase agreement. As a result of the IPO and reorganization, the Company’s sole assets were partnership interests in Operating Partnerships (that are held through its wholly-owned subsidiary HFF Partnership Holdings, LLC, a Delaware limited liability company (“Partnership Holdings”)) and all of the shares of Holliday GP, the sole general partner of each of the Operating Partnerships. The transactions that occurred in connection with the IPO and reorganization are referred to as the “Reorganization Transactions.” The Reorganization Transactions were treated, for financial reporting purposes, as a reorganization of entities under common control. As of August 31, 2012, HFF Holdings had utilized its Exchange Right to exchange all of its remaining interests in the Operating Partnerships and therefore the Company, through its wholly-owned subsidiaries, became and continues to be the sole equity holder of the Operating Partnerships. Basis of Presentation The accompanying consolidated financial statements of the Company include the accounts of HFF LP, HFF Securities, HFF Real Estate Limited and HFF Securities Limited, as well as the Company’s additional wholly-owned subsidiaries, Holliday GP and Partnership Holdings. All significant intercompany accounts and transactions have been eliminated. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, The Company adopted the requirements of the new standard on January 1, 2018, using the modified retrospective approach. Under this method, we could elect to apply the cumulative effect method to either all contracts as of the date of initial application or only to contracts that are not complete as of that date. We elected to apply the modified retrospective method to contracts that were not complete as of the date of initial application. Comparative information has not been adjusted and continues to be reported under the prior revenue recognition accounting guidance. The Company recorded a $1.3 million cumulative effect adjustment to retained earnings related to the adoption of the new standard. As a result of the adoption of Topic 606, the Company now estimates the variable consideration associated with equity capital raising fees and recognizes the revenue once the constraint on revenue is lifted, which generally occurs once capital is committed. For additional information regarding the adoption of Topic 606, refer to Note 2 within the notes to the financial statements. In February 2016, the FASB issued new guidance on the accounting for leases. This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for the Company’s 2019 fiscal year with a modified retrospective transition approach required, with early adoption permitted. The Company is currently evaluating the population of its leases to determine the impact of the adoption on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Stock Compensation (Topic 718): Scope of Modification Accounting”. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The adoption of ASU 2017-09 had no impact on the Company’s consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 10-01 S-X 10-K Revenue Recognition. transaction-by-transaction Total Revenues: Capital markets services revenues • Origination fees non-discretionary • Investment advisory fees • Loan sales Our contracts are generally negotiated on a transaction-by-transaction basis with a success-based fee awarded upon the satisfaction of the origination, sale, referral, placement or equity raise. Our agreements generally include such success-based fees for services that are performed over time under one performance obligation. The variable consideration associated with the successful outcome remains constrained until the completion of the transaction, generally at the closing of the applicable financing or funding of the transaction. Once the constraint is lifted, revenue is recognized as the Company’s fee agreements do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the transaction closes. The substantial majority of our transactions are completed within one year and we have utilized the practical expedients within Topic 606 related to financing components and costs of obtaining a contract due to the short-term nature of the contracts. • Loan servicing fees. The revenues associated with loan servicing fees are accounted for in accordance with Topic 860, Transfers and Servicing Interest on mortgage notes receivable. Other out-of-pocket out-of-pocket Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by its multiple platforms, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table provides a reconciliation of the Company’s revenue recognized under Topic 606 to the Company’s consolidated revenues: Revenue Category March 31, 2018 Debt placement origination fees $ 54,871 Equity placement origination fees 14,081 Investment advisory fees 47,523 Loan sales 592 Revenue recognized under Topic 606 117,067 Loan servicing fees 8,391 Capital markets services revenue 125,458 Interest on mortgage notes receivable 5,244 Other (1) 916 Total revenue $ 131,618 (1) - Other revenues are recognized under Topic 606 Firm and Office Profit Participation Plans and Executive Bonus Plan. Compensation—Stock Compensation paid-in-capital |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | 3. Stock Compensation The stock compensation cost that has been charged against income for the three months ended March 31, 2018 and 2017 was $5.8 million and $3.9 million, respectively, which is recorded in personnel expenses in the consolidated statements of comprehensive income. At March 31, 2018, there was approximately $56.9 million of unrecognized compensation cost related to non-vested During the three-month period ended March 31, 2018, no options were granted, vested, exercised or forfeited. During the three-month period ended March 31, 2018, 812,872 new restricted stock units were granted, 830,202 restricted stock units vested of which 822,207 were converted to Class A common stock, and 1,439 restricted stock units were forfeited. The fair value of vested restricted stock units was $10.9 million at March 31, 2018. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following: March 31, 2018 December 31, 2017 (in thousands) Furniture and equipment $ 8,227 $ 8,192 Computer equipment 2,139 2,139 Capitalized software costs 2,745 2,567 Leasehold improvements 19,721 19,536 Subtotal 32,832 32,434 Less accumulated depreciation and amortization (15,569 ) (14,537 ) $ 17,263 $ 17,897 At March 31, 2018 and December 31, 2017, the Company has recorded, within furniture and equipment, office equipment under capital leases of $1.6 million and $1.7 million, respectively, including accumulated amortization of $1.3 million and $1.3 million, respectively, which is included within depreciation and amortization expense in the accompanying consolidated statements of comprehensive income. See Note 7 for discussion of the related capital lease obligations. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 5. Business Combinations, Goodwill and Intangible Assets During the first quarter of 2017, the Company completed two acquisitions for approximately $6.2 million, net of cash acquired. The acquired businesses are based in New York and the United Kingdom and provide capital advisory and investment banking services to the commercial real estate market. The fair value of consideration transferred was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the remaining unallocated amount recognized as goodwill. This goodwill, of which, approximately $1.8 million is deductible for tax purposes, represents the expected synergies and the Company’s ability to control the assembled workforces of the acquired businesses. The Company’s goodwill as of March 31, 2018 and December 31, 2017 are summarized as follows (in thousands): Balance at December 31, 2017 $ 8,688 Additions through acquisitions — Foreign currency translation 121 Balance at March 31, 2018 $ 8,809 The Company performs goodwill impairment tests annually during the fourth quarter, and also performs interim goodwill impairment tests if it is determined that it is more likely than not that the fair value of a reporting unit is less than the carrying amount. No goodwill impairment test was required for the three months ended March 31, 2018. The Company’s intangible assets are summarized as follows: March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets: Mortgage servicing rights $ 97,773 $ (36,366 ) $ 61,407 $ 92,856 $ (34,373 ) $ 58,483 Other 959 (691 ) 268 959 (605 ) 354 Total intangible assets $ 98,732 $ (37,057 ) $ 61,675 $ 93,815 $ (34,978 ) $ 58,837 The Company’s intangible assets consist of mortgage servicing rights, non-competition non-competition one-year As of March 31, 2018 and December 31, 2017, the Company serviced $72.0 billion and $69.8 billion, respectively, of commercial loans. The Company earned $8.4 million and $6.7 million in servicing fees for the three-month periods ended March 31, 2018 and 2017, respectively. These revenues are recorded within capital markets services revenues in the consolidated statements of comprehensive 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 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, 2018 and 2017, were as follows (dollars in thousands): Category 12/31/17 Capitalized Amortized 3/31/18 Freddie Mac $ 40,468 $ 6,284 $ (2,621 ) $ 44,131 CMBS 13,514 297 (903 ) 12,908 Life company 3,833 548 (665 ) 3,716 Life company – limited 668 90 (106 ) 652 Total $ 58,483 $ 7,219 $ (4,295 ) $ 61,407 Category 12/31/16 Capitalized Amortized 3/31/17 Freddie Mac $ 16,234 $ 4,927 $ (967 ) $ 20,194 CMBS 16,247 311 (1,048 ) 15,510 Life company 3,567 889 (563 ) 3,893 Life company – limited 566 107 (87 ) 586 Total $ 36,614 $ 6,234 $ (2,665 ) $ 40,183 Amounts capitalized represent mortgage servicing rights retained upon the sale of originated loans to Federal Home Loan Mortgage Corporation (“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 $6.3 million and $4.9 million on $1.3 billion and $1.4 billion of loans, respectively, during the three-month periods ended March 31, 2018 and 2017, 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 $1.3 million on $2.9 billion and $3.5 billion of loans, respectively, during the three-month periods ended March 31, 2018 and 2017, respectively. The Company also received securitization compensation in relation to the securitization of certain Freddie Mac mortgage servicing rights in the three-month periods ended March 31, 2018 and 2017 of $4.9 million and $1.5 million, respectively. The securitization compensation is recorded within interest and other income, net in the consolidated statements of comprehensive income. Amortization expense related to intangible assets was $4.4 million and $2.7 million during the three-month periods ended March 31, 2018 and 2017, respectively and is recorded in depreciation and amortization in the consolidated statements of comprehensive income. Estimated amortization expense for the remainder of 2018 and the following five years is as follows (dollars in thousands): Remainder of 2018 $ 9,929 2019 11,282 2020 9,267 2021 7,895 2022 7,100 2023 6,163 The weighted-average life of the mortgage servicing rights intangible asset was 6.8 years at March 31, 2018. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 6. Fair Value Measurement ASC Topic 820, Fair Value Measurement In the normal course of business, the Company enters into contractual commitments to originate (purchase) and sell multifamily mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrowers “lock-in” The following tables set forth the Company’s financial assets that were accounted for at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2018 and December 31, 2017 (in thousands): Recurring fair value measurements Fair Value Measurements Using: March 31, 2018 Carrying Quoted Prices in Significant Other Significant Mortgage notes receivable $ 961,720 $ — $ 961,720 $ — Total recurring fair value measurements $ 961,720 $ — $ 961,720 $ — Fair Value Measurements Using: December 31, 2017 Carrying Quoted Prices in Significant Other Significant Mortgage notes receivable $ 450,821 $ — $ 450,821 $ — Total recurring fair value measurements $ 450,821 $ — $ 450,821 $ — The valuation of mortgage notes receivable is calculated based on already locked in interest rates. These assets are classified as Level 2 in the fair value hierarchy as all inputs are reasonably observable. 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, 2018 and December 31, 2017 (in thousands): Nonrecurring fair value measurements: Fair Value Measurements Using: March 31, 2018 Carrying Quoted Prices in Significant Other Significant Mortgage servicing rights $ 61,407 $ — $ — $ 78,271 Total nonrecurring fair value measurements $ 61,407 $ — $ — $ 78,271 Fair Value Measurements Using: December 31, 2017 Carrying Quoted Prices in Significant Other Significant Mortgage servicing rights $ 58,483 $ — $ — $ 75,899 Total nonrecurring fair value measurements $ 58,483 $ — $ — $ 75,899 In accordance with GAAP, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. These assets may include mortgage servicing rights. The mortgage servicing rights are recorded at fair value upon initial recording and were not remeasured at fair value during the first quarter of 2018 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, 2018. 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 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, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Expected life of cash flows 3 years to 10 years 3 years to 10 years Discount rate (1) 10% to 16% 10% to 16% Prepayment rate 0% to 8% 0% to 8% Inflation rate 2% 2% Cost of service per loan $1,920 to $4,849 $1,920 to $4,780 (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. Our financial instruments also include cash and cash equivalents, restricted cash and warehouse lines of credit. The cash and cash equivalents and restricted cash balances include accounts with maturities of less than three months and therefore, the carrying amount approximates fair value due to the short-term maturities of these instruments. The cash and cash equivalents and restricted cash accounts are classified as Level 1 within the fair value hierarchy. The warehouse line of credit is a short-term facility with variable interest rates and therefore, fair value approximates carrying value. The warehouse line of credit is classified as Level 2 within the fair value hierarchy. |
Capital Lease Obligations
Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Capital Lease Obligations | 7. Capital Lease Obligations Capital lease obligations consist of the following: March 31, 2018 December 31, 2017 (in thousands) Capital lease obligations $ 343 $ 405 Less current maturities 260 269 $ 83 $ 136 Capital lease obligations consist primarily of office equipment leases that expire at various dates through March 2023. A summary of future minimum lease payments under capital leases at March 31, 2018 is as follows: Future minimum lease (in thousands) Remainder of 2018 $ 178 2019 97 2020 50 2021 7 2022 8 Thereafter 3 $ 343 |
Warehouse Line of Credit
Warehouse Line of Credit | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [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 Freddie Mac mortgage loans that it originates under the Freddie Mac Program. The Company is a party to an uncommitted $600 million financing arrangement with PNC Bank, N.A. (“PNC”). The PNC arrangement was amended during the third quarter of 2017 to increase the uncommitted amount from $450 million to $600 million and effective March 15, 2018 allows for increases up to $1.0 billion. The Company is also party to an uncommitted $150 million financing arrangement with The Huntington National Bank (“Huntington”). The Huntington arrangement was amended in July 2017 to increase the uncommitted amount from $125 million to $150 million, which can be increased to $175 million three times in a one-year period Each funding is separately approved on a transaction-by-transaction basis the 30-day |
Lease Commitments
Lease Commitments | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | 9. Lease Commitments The Company leases various corporate offices (which leases sometime include parking spaces) and office equipment under noncancelable operating leases. These leases have initial terms of three to eleven years. Several of the leases have termination clauses whereby the term may be reduced by two to eight years upon prior notice and payment of a termination fee by the Company. Total rental expense charged to operations was $3.2 million and $3.6 million during the three-month periods ended March 31, 2018 and 2017, respectively, and is recorded within occupancy expense in the consolidated statements of comprehensive 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: Future minimum (in thousands) Remainder of 2018 $ 7,895 2019 10,418 2020 10,691 2021 9,237 2022 7,027 2023 4,081 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 comprehensive income. The Company also leases certain office equipment under capital leases that expire at various dates through 2020. See Note 4 and Note 7 above for further description of the assets and related obligations recorded under these capital leases at March 31, 2018 and December 31, 2017, respectively. |
Servicing
Servicing | 3 Months Ended |
Mar. 31, 2018 | |
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 $72.0 billion and $69.8 billion at March 31, 2018 and December 31, 2017, 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, 2018 and December 31, 2017, the funds held in escrow totaled $218.0 million and $208.3 million, respectively. These funds, and the offsetting obligations, are not presented in the Company’s 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 other income in the consolidated statements of comprehensive income. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [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, |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018: Federal $ — $ 1,390 $ 1,390 State 139 (380 ) (241 ) International — (344 ) (344 ) $ 139 $ 666 $ 805 Current Deferred Total Three months ended March 31, 2017: Federal $ 1,085 $ 9,250 $ 10,335 State 641 919 1,560 $ 1,726 $ 10,169 $ 11,895 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, 2018 and 2017 (dollars in thousands): March 31, 2018 2017 Income tax expense / (benefit) Rate Rate Taxes computed at federal rate $ 3,753 21.0 % $ 11,043 35.0 % State and local taxes, net of federal tax benefit 870 4.9 % 1,303 4.1 % Rate differential on non-US (1 ) 0.0 % 91 0.3 % Effect of (windfalls) shortfalls related to equity compensation (4,535 ) (25.4 )% (1,124 ) (3.6 )% Meals and entertainment 321 1.8 % 346 1.1 % Other 397 2.2 % 236 0.8 % Income tax expense $ 805 4.5 % $ 11,895 37.7 % The Company continues to account for impacts of the U.S. Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) as estimated amounts, pending further information and analysis, which include the finalization of the tax returns and interpretive Internal Revenues Service guidance. |
Stockholders Equity
Stockholders Equity | 3 Months Ended |
Mar. 31, 2018 | |
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 the stockholders for their vote or approval. The Company had issued 39,141,404 and 38,742,698 shares of Class A common stock as of March 31, 2018 and December 31, 2017, respectively. On January 26, 2018, our board of directors declared a special cash dividend of $1.75 per share of Class A common stock to stockholders of record on February 9, 2018. The aggregate dividend payment was paid on February 21, 2018 and totaled approximately $67.8 million based on the number of shares of Class A common stock then outstanding. Additionally, 79,387 restricted stock units (dividend equivalent units) were granted for those unvested and vested but not issued restricted stock units as of the record date of February 9, 2018. These dividend equivalent units follow the same vesting terms as the underlying restricted stock units. On January 24, 2017, the Company’s board of directors declared a special cash dividend of $1.57 per share of Class A common stock to stockholders of record on February 9, 2017. The aggregate dividend payment was paid on February 21, 2017 and totaled approximately $60.0 million based on the number of shares of Class A common stock then outstanding. Additionally, 95,648 restricted stock units (dividend equivalent units) were granted for those unvested and vested but not issued restricted stock units as of the record date of February 9, 2017. These dividend equivalent units follow the same vesting terms as the underlying restricted stock units. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 consist of the following: Three months ended March 31, 2018 2017 (in thousands, except share data) Net income $ 17,068 $ 19,656 Weighted Average Shares Outstanding: Basic 39,041,492 38,538,641 Diluted 40,201,900 39,166,361 The calculations of basic and diluted earnings per share amounts for the three-month periods ended March 31, 2018 and 2017 are described and presented below. Basic Earnings per Share Numerator Denominator Diluted Earnings per Share Numerator Denominator Three months ended March 31, 2018 2017 (in thousands, except share data) Basic Earnings Per Share of Class A Common Stock Numerator: Net income $ 17,068 $ 19,656 Denominator: Weighted average number of shares of Class A common stock outstanding 39,041,492 38,538,641 Basic earnings per share of Class A common stock $ 0.44 $ 0.51 Diluted Earnings Per Share of Class A Common Stock Numerator: Net income $ 17,068 $ 19,656 Denominator: Basic weighted average number of shares of Class A common stock 39,041,492 38,538,641 Add—dilutive effect of: Unvested restricted stock units 1,143,646 612,779 Stock options 16,762 14,941 Weighted average common shares outstanding — diluted 40,201,900 39,166,361 Diluted earnings per share of Class A common stock $ 0.42 $ 0.50 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions 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, if any, 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 capital markets advisor of the Operating Partnerships, John Fowler, a current director emeritus of the Company’s board of directors and a capital markets advisor of the Operating Partnerships, and Matthew D. Lawton, Gerard T. Sansosti, Michael J. Tepedino and Manuel A. de Zarraga, each an Executive Managing Director and a capital markets advisor 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 will retain the remaining 15% of cash savings, if any, 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 initial public offering and will continue until all such tax benefits have been utilized or have expired. See Note 16 for the amount recorded in relation to this agreement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Tax Receivable Agreement 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. We have estimated that future payments that will be made to HFF Holdings will be $60.9 million, of which approximately $11.8 million is anticipated to be paid in 2018. Employment Agreements In recent years, the Company has entered into arrangements with newly-hired capital markets advisors whereby these capital markets advisors would be paid additional compensation if certain performance targets are met over a defined period. These payments will be made to the capital markets advisors 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 2018 through 2019. 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 capital markets advisors achieving the performance targets and the probability of each of the capital markets advisors signing an employment agreement. As of both March 31, 2018 and December 31, 2017, $0.6 million has been accrued for these arrangements on the consolidated balance sheet. |
Organization and Basis of Pre23
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company include the accounts of HFF LP, HFF Securities, HFF Real Estate Limited and HFF Securities Limited, as well as the Company’s additional wholly-owned subsidiaries, Holliday GP and Partnership Holdings. All significant intercompany accounts and transactions have been eliminated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, The Company adopted the requirements of the new standard on January 1, 2018, using the modified retrospective approach. Under this method, we could elect to apply the cumulative effect method to either all contracts as of the date of initial application or only to contracts that are not complete as of that date. We elected to apply the modified retrospective method to contracts that were not complete as of the date of initial application. Comparative information has not been adjusted and continues to be reported under the prior revenue recognition accounting guidance. The Company recorded a $1.3 million cumulative effect adjustment to retained earnings related to the adoption of the new standard. As a result of the adoption of Topic 606, the Company now estimates the variable consideration associated with equity capital raising fees and recognizes the revenue once the constraint on revenue is lifted, which generally occurs once capital is committed. For additional information regarding the adoption of Topic 606, refer to Note 2 within the notes to the financial statements. In February 2016, the FASB issued new guidance on the accounting for leases. This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for the Company’s 2019 fiscal year with a modified retrospective transition approach required, with early adoption permitted. The Company is currently evaluating the population of its leases to determine the impact of the adoption on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Stock Compensation (Topic 718): Scope of Modification Accounting”. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The adoption of ASU 2017-09 had no impact on the Company’s consolidated financial statements. |
Revenue Recognition | Revenue Recognition. transaction-by-transaction Total Revenues: Capital markets services revenues • Origination fees non-discretionary • Investment advisory fees • Loan sales Our contracts are generally negotiated on a transaction-by-transaction basis with a success-based fee awarded upon the satisfaction of the origination, sale, referral, placement or equity raise. Our agreements generally include such success-based fees for services that are performed over time under one performance obligation. The variable consideration associated with the successful outcome remains constrained until the completion of the transaction, generally at the closing of the applicable financing or funding of the transaction. Once the constraint is lifted, revenue is recognized as the Company’s fee agreements do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the transaction closes. The substantial majority of our transactions are completed within one year and we have utilized the practical expedients within Topic 606 related to financing components and costs of obtaining a contract due to the short-term nature of the contracts. • Loan servicing fees. The revenues associated with loan servicing fees are accounted for in accordance with Topic 860, Transfers and Servicing Interest on mortgage notes receivable. Other out-of-pocket out-of-pocket Disaggregation of Revenue The Company disaggregates its revenue from contracts with customers by its multiple platforms, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table provides a reconciliation of the Company’s revenue recognized under Topic 606 to the Company’s consolidated revenues: Revenue Category March 31, 2018 Debt placement origination fees $ 54,871 Equity placement origination fees 14,081 Investment advisory fees 47,523 Loan sales 592 Revenue recognized under Topic 606 117,067 Loan servicing fees 8,391 Capital markets services revenue 125,458 Interest on mortgage notes receivable 5,244 Other (1) 916 Total revenue $ 131,618 (1) - Other revenues are recognized under Topic 606 |
Firm and Office Profit Participation Plans and Executive Bonus Plan | Firm and Office Profit Participation Plans and Executive Bonus Plan. Compensation—Stock Compensation paid-in-capital |
Fair Value Measurement | ASC Topic 820, Fair Value Measurement |
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, |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Company's Revenue Recognized Under Topic 606 | The following table provides a reconciliation of the Company’s revenue recognized under Topic 606 to the Company’s consolidated revenues: Revenue Category March 31, 2018 Debt placement origination fees $ 54,871 Equity placement origination fees 14,081 Investment advisory fees 47,523 Loan sales 592 Revenue recognized under Topic 606 117,067 Loan servicing fees 8,391 Capital markets services revenue 125,458 Interest on mortgage notes receivable 5,244 Other (1) 916 Total revenue $ 131,618 (1) - Other revenues are recognized under Topic 606 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: March 31, 2018 December 31, 2017 (in thousands) Furniture and equipment $ 8,227 $ 8,192 Computer equipment 2,139 2,139 Capitalized software costs 2,745 2,567 Leasehold improvements 19,721 19,536 Subtotal 32,832 32,434 Less accumulated depreciation and amortization (15,569 ) (14,537 ) $ 17,263 $ 17,897 |
Business Combinations, Goodwi26
Business Combinations, Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The Company’s goodwill as of March 31, 2018 and December 31, 2017 are summarized as follows (in thousands): Balance at December 31, 2017 $ 8,688 Additions through acquisitions — Foreign currency translation 121 Balance at March 31, 2018 $ 8,809 |
Summary of Intangible Assets | The Company’s intangible assets are summarized as follows: March 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Intangible assets: Mortgage servicing rights $ 97,773 $ (36,366 ) $ 61,407 $ 92,856 $ (34,373 ) $ 58,483 Other 959 (691 ) 268 959 (605 ) 354 Total intangible assets $ 98,732 $ (37,057 ) $ 61,675 $ 93,815 $ (34,978 ) $ 58,837 |
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, 2018 and 2017, were as follows (dollars in thousands): Category 12/31/17 Capitalized Amortized 3/31/18 Freddie Mac $ 40,468 $ 6,284 $ (2,621 ) $ 44,131 CMBS 13,514 297 (903 ) 12,908 Life company 3,833 548 (665 ) 3,716 Life company – limited 668 90 (106 ) 652 Total $ 58,483 $ 7,219 $ (4,295 ) $ 61,407 Category 12/31/16 Capitalized Amortized 3/31/17 Freddie Mac $ 16,234 $ 4,927 $ (967 ) $ 20,194 CMBS 16,247 311 (1,048 ) 15,510 Life company 3,567 889 (563 ) 3,893 Life company – limited 566 107 (87 ) 586 Total $ 36,614 $ 6,234 $ (2,665 ) $ 40,183 |
Summary of Estimated Amortization Expense | Estimated amortization expense for the remainder of 2018 and the following five years is as follows (dollars in thousands): Remainder of 2018 $ 9,929 2019 11,282 2020 9,267 2021 7,895 2022 7,100 2023 6,163 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Accounted at Fair Value on Recurring Basis | The following tables set forth the Company’s financial assets that were accounted for at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2018 and December 31, 2017 (in thousands): Recurring fair value measurements Fair Value Measurements Using: March 31, 2018 Carrying Quoted Prices in Significant Other Significant Mortgage notes receivable $ 961,720 $ — $ 961,720 $ — Total recurring fair value measurements $ 961,720 $ — $ 961,720 $ — Fair Value Measurements Using: December 31, 2017 Carrying Quoted Prices in Significant Other Significant Mortgage notes receivable $ 450,821 $ — $ 450,821 $ — Total recurring fair value measurements $ 450,821 $ — $ 450,821 $ — |
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, 2018 and December 31, 2017 (in thousands): Nonrecurring fair value measurements: Fair Value Measurements Using: March 31, 2018 Carrying Quoted Prices in Significant Other Significant Mortgage servicing rights $ 61,407 $ — $ — $ 78,271 Total nonrecurring fair value measurements $ 61,407 $ — $ — $ 78,271 Fair Value Measurements Using: December 31, 2017 Carrying Quoted Prices in Significant Other Significant Mortgage servicing rights $ 58,483 $ — $ — $ 75,899 Total nonrecurring fair value measurements $ 58,483 $ — $ — $ 75,899 |
Significant Assumptions Utilized to Value Servicing Rights | The significant assumptions utilized to value servicing rights as of March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Expected life of cash flows 3 years to 10 years 3 years to 10 years Discount rate (1) 10% to 16% 10% to 16% Prepayment rate 0% to 8% 0% to 8% Inflation rate 2% 2% Cost of service per loan $1,920 to $4,849 $1,920 to $4,780 (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, 2018 | |
Leases [Abstract] | |
Summary of Capital Lease Obligations | Capital lease obligations consist of the following: March 31, 2018 December 31, 2017 (in thousands) Capital lease obligations $ 343 $ 405 Less current maturities 260 269 $ 83 $ 136 |
Summary of Future Minimum Lease Payments Under Capital Leases | A summary of future minimum lease payments under capital leases at March 31, 2018 is as follows: Future minimum lease (in thousands) Remainder of 2018 $ 178 2019 97 2020 50 2021 7 2022 8 Thereafter 3 $ 343 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [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: Future minimum (in thousands) Remainder of 2018 $ 7,895 2019 10,418 2020 10,691 2021 9,237 2022 7,027 2023 4,081 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018: Federal $ — $ 1,390 $ 1,390 State 139 (380 ) (241 ) International — (344 ) (344 ) $ 139 $ 666 $ 805 Current Deferred Total Three months ended March 31, 2017: Federal $ 1,085 $ 9,250 $ 10,335 State 641 919 1,560 $ 1,726 $ 10,169 $ 11,895 |
Summary of Income Tax Expense Allocation | 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, 2018 and 2017 (dollars in thousands): March 31, 2018 2017 Income tax expense / (benefit) Rate Rate Taxes computed at federal rate $ 3,753 21.0 % $ 11,043 35.0 % State and local taxes, net of federal tax benefit 870 4.9 % 1,303 4.1 % Rate differential on non-US (1 ) 0.0 % 91 0.3 % Effect of (windfalls) shortfalls related to equity compensation (4,535 ) (25.4 )% (1,124 ) (3.6 )% Meals and entertainment 321 1.8 % 346 1.1 % Other 397 2.2 % 236 0.8 % Income tax expense $ 805 4.5 % $ 11,895 37.7 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and 2017 consist of the following: Three months ended March 31, 2018 2017 (in thousands, except share data) Net income $ 17,068 $ 19,656 Weighted Average Shares Outstanding: Basic 39,041,492 38,538,641 Diluted 40,201,900 39,166,361 |
Summary of Calculations of Basic and Diluted Net Income per Share | Three months ended March 31, 2018 2017 (in thousands, except share data) Basic Earnings Per Share of Class A Common Stock Numerator: Net income $ 17,068 $ 19,656 Denominator: Weighted average number of shares of Class A common stock outstanding 39,041,492 38,538,641 Basic earnings per share of Class A common stock $ 0.44 $ 0.51 Diluted Earnings Per Share of Class A Common Stock Numerator: Net income $ 17,068 $ 19,656 Denominator: Basic weighted average number of shares of Class A common stock 39,041,492 38,538,641 Add—dilutive effect of: Unvested restricted stock units 1,143,646 612,779 Stock options 16,762 14,941 Weighted average common shares outstanding — diluted 40,201,900 39,166,361 Diluted earnings per share of Class A common stock $ 0.42 $ 0.50 |
Organization and Basis of Pre32
Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)Officeshares | |
Class of Stock [Line Items] | |
Cumulative effect adjustment to retained earnings related to the adoption of the new standard | $ | $ 1,304 |
UNITED STATES | |
Class of Stock [Line Items] | |
Number of offices | 25 |
London, United Kingdom [Member] | |
Class of Stock [Line Items] | |
Number of offices | 1 |
IPO [Member] | HFF Holdings [Member] | |
Class of Stock [Line Items] | |
Percentage of shares purchase from Partners | 45.00% |
Sale of common stock, shares | shares | 1 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Summary of Reconciliation of Company's Revenue Recognized Under Topic 606 (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Loan servicing fees | $ 8,391 | |
Capital markets services revenue | 125,458 | $ 132,713 |
Interest on mortgage notes receivable | 5,244 | 4,999 |
Other (1) | 916 | 1,094 |
Total revenue | 131,618 | $ 138,806 |
Debt Placement Origination Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 54,871 | |
Equity Placement Origination Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 14,081 | |
Investment Advisory Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 47,523 | |
Loan Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 592 | |
Revenue Recognized under Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 117,067 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Office and Firm Profit Participation Plans [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Vesting period | 50 months |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation cost | $ 5,752 | $ 3,906 |
Options, Granted | 0 | |
Options, Vested | 0 | |
Options, Forfeited | 0 | |
Options, Exercised | 0 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to non-vested restricted stock units | $ 56,900 | |
Weighted average contractual term | 2 years 6 months | |
Restricted stock units outstanding | 2,378,774 | |
Number of stock units with continued vesting requirements | 2,160,072 | |
Restricted stock units, Granted | 812,872 | |
Restricted stock units vested | 830,202 | |
Restricted stock units, forfeited | 1,439 | |
Fair value of restricted stock units | $ 10,900 | |
Restricted Stock Units [Member] | Class A Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units outstanding, Converted to common stock | 822,207 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 32,832 | $ 32,434 |
Less accumulated depreciation and amortization | (15,569) | (14,537) |
Property, plant and equipment, net | 17,263 | 17,897 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 8,227 | 8,192 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,139 | 2,139 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 2,745 | 2,567 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 19,721 | $ 19,536 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Capital leased office equipment recorded in furniture and equipment | $ 32,832 | $ 32,434 |
Accumulated depreciation and amortization of capital leased office equipment included in consolidated statements | 15,569 | 14,537 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capital leased office equipment recorded in furniture and equipment | 1,600 | 1,700 |
Accumulated depreciation and amortization of capital leased office equipment included in consolidated statements | $ 1,300 | $ 1,300 |
Business Combinations, Goodwi38
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($)Business | Dec. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Business acquisition consideration | $ 6,230 | ||
Commercial loans serviced by the Company | $ 72,000,000 | $ 69,800,000 | |
Servicing fees and interest earned | 8,400 | 6,700 | |
Loan served for mortgage servicing rights | 71,100,000 | 68,800,000 | |
Amortization expenses | $ 4,381 | $ 2,665 | |
Weighted-average life of mortgage servicing rights | 6 years 9 months 18 days | ||
Hentschel & Company LLC and Lotenno Limited [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of businesses acquired | Business | 2 | ||
Business acquisition consideration | $ 6,200 | ||
Goodwill deductible for tax purposes | 1,800 | ||
Mortgage Servicing Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights | $ 61,407 | $ 58,483 | |
Freddie Mac [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights retained upon sale | 6,300 | 4,900 | |
Originated loans, net | 1,300,000 | 1,400,000 | |
Freddie Mac [Member] | Interest and Other Income, Net [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Securitization compensation received | 4,900 | 1,500 | |
CMBS [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights acquired without exchange of initial consideration | 900 | 1,300 | |
Life Company Tranches [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights acquired without exchange of initial consideration | $ 2,900,000 | $ 3,500,000 |
Business Combinations, Goodwi39
Business Combinations, Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Intangible Liability Disclosure [Abstract] | |
Beginning Balance | $ 8,688 |
Additions through acquisitions | 0 |
Foreign currency translation | 121 |
Ending Balance | $ 8,809 |
Business Combinations, Goodwi40
Business Combinations, Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets Gross Carrying Amount | $ 98,732 | $ 93,815 |
Accumulated Amortization | (37,057) | (34,978) |
Total intangible assets Net Book Value | 61,675 | 58,837 |
Mortgage Servicing Rights [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97,773 | 92,856 |
Accumulated Amortization | (36,366) | (34,373) |
Total intangible assets Net Book Value | 61,407 | 58,483 |
Other [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 959 | 959 |
Accumulated Amortization | (691) | (605) |
Total intangible assets Net Book Value | $ 268 | $ 354 |
Business Combinations, Goodwi41
Business Combinations, Goodwill and Intangible Assets - Summary of Carrying and Fair Value of Mortgage Servicing Rights (Detail) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | $ 58,483 | $ 36,614 |
Capitalized | 7,219 | 6,234 |
Amortized | (4,295) | (2,665) |
Closing Balance | 61,407 | 40,183 |
Freddie Mac [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 40,468 | 16,234 |
Capitalized | 6,284 | 4,927 |
Amortized | (2,621) | (967) |
Closing Balance | 44,131 | 20,194 |
CMBS [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 13,514 | 16,247 |
Capitalized | 297 | 311 |
Amortized | (903) | (1,048) |
Closing Balance | 12,908 | 15,510 |
Life Company [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 3,833 | 3,567 |
Capitalized | 548 | 889 |
Amortized | (665) | (563) |
Closing Balance | 3,716 | 3,893 |
Life Company - Limited [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 668 | 566 |
Capitalized | 90 | 107 |
Amortized | (106) | (87) |
Closing Balance | $ 652 | $ 586 |
Business Combinations, Goodwi42
Business Combinations, Goodwill and Intangible Assets - Summary of Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Remainder of 2018 | $ 9,929 |
2,019 | 11,282 |
2,020 | 9,267 |
2,021 | 7,895 |
2,022 | 7,100 |
2,023 | $ 6,163 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets Accounted at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes receivable | $ 961,720 | $ 450,821 |
Total recurring fair value measurements | 961,720 | 450,821 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes receivable | 961,720 | 450,821 |
Total recurring fair value measurements | $ 961,720 | $ 450,821 |
Fair Value Measurement - Fina44
Fair Value Measurement - Financial Assets Accounted at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | $ 61,407 | $ 58,483 |
Total nonrecurring fair value measurements | 61,407 | 58,483 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 78,271 | 75,899 |
Total nonrecurring fair value measurements | $ 78,271 | $ 75,899 |
Fair Value Measurement - Signif
Fair Value Measurement - Significant Assumptions Utilized to Value Servicing Rights (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Inflation rate | 2.00% | 2.00% |
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 | 10.00% | 10.00% |
Prepayment rate | 0.00% | 0.00% |
Cost of service per loan | $ 1,920 | $ 1,920 |
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 | 16.00% | 16.00% |
Prepayment rate | 8.00% | 8.00% |
Cost of service per loan | $ 4,849 | $ 4,780 |
Capital Lease Obligations - Sum
Capital Lease Obligations - Summary of Capital Lease Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Capital Lease Obligations [Abstract] | ||
Capital lease obligations | $ 343 | $ 405 |
Less current maturities | 260 | 269 |
Capital lease obligations, non current maturities | $ 83 | $ 136 |
Capital Lease Obligation - Addi
Capital Lease Obligation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Lease Expiration Date | Mar. 31, 2023 |
Capital Lease Obligation - Summ
Capital Lease Obligation - Summary of Future Minimum Lease Payments Under Capital Leases (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | $ 178 |
2,019 | 97 |
2,020 | 50 |
2,021 | 7 |
2,022 | 8 |
Thereafter | 3 |
Total | $ 343 |
Warehouse Line of Credit - Addi
Warehouse Line of Credit - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 31, 2018USD ($)Warehouse_Line_of_Credit | Mar. 15, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | |||||
Number of warehouse line of credit facilities | Warehouse_Line_of_Credit | 2 | ||||
Warehouse line of credit outstanding amount | $ 958,800,000 | $ 450,300,000 | |||
Line of credit interest rate at the end of the period | 1.88% | 1.37% | |||
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 (1.88% and 1.37% at March 31, 2018 and December 31, 2017, respectively) plus a spread. HFF LP is also paid interest on the mortgage note receivable secured by a multifamily loan at the rate in the Freddie Mac note. | ||||
PNC Bank, N.A. [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Uncommitted financing arrangement | $ 600,000,000 | $ 1,000,000,000 | $ 450,000,000 | ||
Description of uncommitted amount | Drawings in excess of the uncommitted amount of $600 million are charged a 20-basis point fee prorated on the amount in excess of $600 million. | ||||
Percentage of fee in excess of uncommitted amount | 20.00% | ||||
Maximum capacity | $ 1,500,000,000 | ||||
Huntington Bank [Member] | Temporary Increase To Line Of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Uncommitted financing arrangement | 150,000,000 | $ 125,000,000 | |||
Maximum uncommitted financing arrangement | $ 175,000,000 | ||||
Maximum uncommitted financing arrangement expiration period | 45 days | ||||
Frequency of temporary increases | Warehouse_Line_of_Credit | 3 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leased Assets [Line Items] | ||
Total rental expense | $ 3.2 | $ 3.6 |
Lease expiration year | 2,020 | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease terms | 11 years | |
Reduced operating lease terms | 8 years | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease terms | 3 years | |
Reduced operating lease terms | 2 years |
Lease Commitments - Summary of
Lease Commitments - Summary of Future Minimum Rental Payments (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | $ 7,895 |
2,019 | 10,418 |
2,020 | 10,691 |
2,021 | 9,237 |
2,022 | 7,027 |
2,023 | $ 4,081 |
Servicing - Additional Informat
Servicing - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Transfers and Servicing [Abstract] | ||
Unpaid principal balance of servicing portfolio of commercial real estate loan | $ 72,000 | $ 69,800 |
Funds held in escrow | $ 218 | $ 208.3 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense Includes Current and Deferred Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Current Federal Tax | $ 1,085 | |
State Current Tax | $ 139 | 641 |
International Current Tax | 0 | |
Federal and State Current Total | 139 | 1,726 |
Federal Deferred Tax | 1,390 | 9,250 |
State Deferred Tax | (380) | 919 |
International Deferred Tax | (344) | |
Federal and State Deferred Total | 666 | 10,169 |
Federal Current and Deferred Total | 1,390 | 10,335 |
State Current and Deferred Total | (241) | 1,560 |
International Current and Deferred Total | (344) | |
Income tax expense | $ 805 | $ 11,895 |
Income Taxes - Summary of Inc54
Income Taxes - Summary of Income Tax Expense Allocation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Taxes computed at federal rate | $ 3,753 | $ 11,043 |
State and local taxes, net of federal tax benefit | 870 | 1,303 |
Rate differential on non-US income | (1) | 91 |
Effect of (windfalls) shortfalls related to equity compensation | (4,535) | (1,124) |
Meals and entertainment | 321 | 346 |
Other | 397 | 236 |
Income tax expense | $ 805 | $ 11,895 |
Taxes computed at federal rate, Percentage | 21.00% | 35.00% |
State and local taxes, net of federal tax benefit, Percentage | 4.90% | 4.10% |
Rate differential on non-US income, Percentage | 0.00% | 0.30% |
Effect of (windfalls) shortfalls related to equity compensation, Percentage | (25.40%) | (3.60%) |
Meals and entertainment, Percentage | 1.80% | 1.10% |
Other, Percentage | 2.20% | 0.80% |
Income tax expense, Total Percentage | 4.50% | 37.70% |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 21, 2018 | Feb. 09, 2018 | Jan. 26, 2018 | Feb. 21, 2017 | Feb. 09, 2017 | Jan. 24, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||
Aggregate dividend paid | $ 67,772 | $ 60,017 | |||||||
Class A Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 175,000,000 | 175,000,000 | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||||
Voting rights per common stock | 1 | ||||||||
Common stock, shares issued | 39,141,404 | 38,742,698 | |||||||
Class A Common Stock [Member] | Restricted Stock Units [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Restricted stock granted for unvested and vested but not issued | 79,387 | 95,648 | |||||||
Class A Common Stock [Member] | HFF Holdings [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares issued | 39,141,404 | 38,742,698 | |||||||
Special cash dividend | $ 1.75 | $ 1.57 | |||||||
Dividends payable, date of record | Feb. 9, 2018 | Feb. 9, 2017 | |||||||
Dividends payable, declaration date | Jan. 26, 2018 | Jan. 24, 2017 | |||||||
Dividends payable, payment date | Feb. 21, 2018 | Feb. 21, 2017 | |||||||
Aggregate dividend paid | $ 67,800 | $ 60,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Net Income and Weighted Average Shares Outstanding (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 17,068 | $ 19,656 |
Weighted Average Shares Outstanding: | ||
Basic | 39,041,492 | 38,538,641 |
Diluted | 40,201,900 | 39,166,361 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Stock Units [Member] | ||
Earnings Per Share [Line Items] | ||
Stock units and stock options included in weighted average shares | 218,702 | 199,036 |
Stock Options [Member] | ||
Earnings Per Share [Line Items] | ||
Stock units and stock options included in weighted average shares | 0 | 0 |
Earnings Per Share - Summary 58
Earnings Per Share - Summary of Calculations of Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income | $ 17,068 | $ 19,656 |
Denominator: | ||
Basic weighted average number of shares of Class A common stock | 39,041,492 | 38,538,641 |
Basic earnings per share of Class A common stock | $ 0.44 | $ 0.51 |
Add-dilutive effect of: | ||
Weighted average common shares outstanding - diluted | 40,201,900 | 39,166,361 |
Diluted earnings per share of Class A common stock | $ 0.42 | $ 0.50 |
Restricted Stock Units [Member] | ||
Add-dilutive effect of: | ||
Stock options | 218,702 | 199,036 |
Basic Earnings Per Share of Class A Common Stock [Member] | Class A Common Stock [Member] | ||
Numerator: | ||
Net income | $ 17,068 | $ 19,656 |
Denominator: | ||
Basic weighted average number of shares of Class A common stock | 39,041,492 | 38,538,641 |
Basic earnings per share of Class A common stock | $ 0.44 | $ 0.51 |
Diluted Earnings Per Share of Class A Common Stock [Member] | Class A Common Stock [Member] | ||
Numerator: | ||
Net income | $ 17,068 | $ 19,656 |
Denominator: | ||
Basic weighted average number of shares of Class A common stock | 39,041,492 | 38,538,641 |
Add-dilutive effect of: | ||
Weighted average common shares outstanding - diluted | 40,201,900 | 39,166,361 |
Diluted earnings per share of Class A common stock | $ 0.42 | $ 0.50 |
Diluted Earnings Per Share of Class A Common Stock [Member] | Class A Common Stock [Member] | Restricted Stock Units [Member] | ||
Add-dilutive effect of: | ||
Stock options | 1,143,646 | 612,779 |
Diluted Earnings Per Share of Class A Common Stock [Member] | Class A Common Stock [Member] | Stock Options [Member] | ||
Add-dilutive effect of: | ||
Stock options | 16,762 | 14,941 |
Earnings Per Share - Summary 59
Earnings Per Share - Summary of Calculations of Basic and Diluted Net Income per Share (Parenthetical) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Stock Units [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Stock units and stock options included in weighted average shares | 218,702 | 199,036 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |
Percentage of retained cash savings in income tax | 15.00% |
HFF Holdings [Member] | |
Related Party Transaction [Line Items] | |
Percentage of tax receivable agreement | 85.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Commitments And Contingent Liabilities [Line Items] | ||
Anticipated payment to HFF holding | $ 11.8 | |
Accrued additional compensation to newly hired capital markets advisors | $ 0.6 | $ 0.6 |
Federal [Member] | ||
Summary Of Commitments And Contingent Liabilities [Line Items] | ||
Amount of cash savings to HFF holdings | 85.00% | |
HFF Holdings [Member] | ||
Summary Of Commitments And Contingent Liabilities [Line Items] | ||
Estimated future payments to HFF holding | $ 60.9 |