Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Class A Stock [Member] | Class B Stock [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Entity Registrant Name | 'OPPENHEIMER HOLDINGS INC | ' | ' |
Entity Central Index Key | '0000791963 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,412,897 | 99,680 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $105,357 | $135,366 |
Cash and securities segregated for regulatory and other purposes | 36,569 | 33,000 |
Deposits with clearing organizations | 25,054 | 25,954 |
Receivable from brokers, dealers and clearing organizations | 395,507 | 479,699 |
Receivable from customers, net of allowance for credit losses of $2,434 ($2,256 in 2012) | 873,433 | 817,941 |
Income tax receivable | 6,152 | 451 |
Securities owned, including amounts pledged of $805,399 ($569,995 in 2012), at fair value | 1,082,469 | 759,742 |
Notes receivable, net | 43,113 | 47,324 |
Office facilities, net | 33,540 | 28,332 |
Deferred tax assets, net | 2,478 | 16,340 |
Intangible assets, net | 31,700 | 31,700 |
Goodwill | 137,889 | 137,889 |
Other assets | 223,387 | 164,282 |
Total assets | 2,996,648 | 2,678,020 |
Liabilities | ' | ' |
Drafts payable | 36,165 | 56,586 |
Bank call loans | 94,800 | 128,300 |
Payable to brokers, dealers and clearing organizations | 265,943 | 204,218 |
Payable to customers | 690,911 | 692,378 |
Securities sold under agreements to repurchase | 630,853 | 392,391 |
Securities sold, but not yet purchased, at fair value | 243,065 | 173,450 |
Accrued compensation | 133,197 | 150,434 |
Accounts payable and other liabilities | 191,441 | 180,262 |
Senior secured notes | 195,000 | 195,000 |
Total liabilities | 2,481,375 | 2,173,019 |
Commitments and contingencies (Note 9) | ' | ' |
Share capital | ' | ' |
Common stock | 61,444 | 62,181 |
Contributed capital | 41,111 | 39,231 |
Retained earnings | 406,375 | 399,121 |
Accumulated other comprehensive income | 1,363 | 207 |
Total Oppenheimer Holdings Inc. stockholders' equity | 510,293 | 500,740 |
Non-controlling interest | 4,980 | 4,261 |
Total stockholders' equity | 515,273 | 505,001 |
Total liabilities and stockholders' equity | 2,996,648 | 2,678,020 |
Class A Stock [Member] | ' | ' |
Share capital | ' | ' |
Common stock | 61,311 | 62,048 |
Class B Stock [Member] | ' | ' |
Share capital | ' | ' |
Common stock | $133 | $133 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Oct. 07, 2011 |
In Thousands, except Share data, unless otherwise specified | |||||||
Allowance for credit losses | 2,434 | ' | 2,256 | ' | ' | ' | ' |
Amounts pledged | 805,399 | ' | 569,995 | ' | ' | ' | ' |
Class A Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 13,442,759 | ' | 13,508,318 | ' | ' | ' | 13,572,265 |
Common stock, shares outstanding | 13,442,759 | 13,496,783 | 13,508,318 | 13,515,012 | 13,489,162 | 13,572,265 | 13,572,265 |
Class B Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 99,680 | ' | 99,680 | ' | ' | ' | ' |
Common stock, shares outstanding | 99,680 | ' | 99,680 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUE | ' | ' | ' | ' |
Commissions | $120,252 | $113,424 | $364,272 | $351,487 |
Principal transactions, net | 10,347 | 14,372 | 33,596 | 40,387 |
Interest | 14,439 | 14,823 | 39,916 | 42,462 |
Investment banking | 21,362 | 21,589 | 62,377 | 66,647 |
Advisory fees | 60,117 | 53,015 | 177,417 | 156,796 |
Other | 16,859 | 14,615 | 48,774 | 45,418 |
Total revenue | 243,376 | 231,838 | 726,352 | 703,197 |
EXPENSES | ' | ' | ' | ' |
Compensation and related expenses | 161,081 | 151,969 | 480,296 | 461,516 |
Clearing and exchange fees | 6,099 | 6,026 | 18,434 | 18,046 |
Communications and technology | 16,999 | 15,880 | 48,881 | 47,346 |
Occupancy and equipment costs | 16,405 | 17,526 | 51,111 | 59,279 |
Interest | 6,164 | 8,842 | 20,169 | 25,864 |
Other | 28,465 | 26,337 | 86,911 | 84,538 |
Total expenses | 235,213 | 226,580 | 705,802 | 696,589 |
Income before income taxes | 8,163 | 5,258 | 20,550 | 6,608 |
Income tax provision | 2,655 | 2,234 | 8,083 | 4,092 |
Net income (loss) for the period | 5,508 | 3,024 | 12,467 | 2,516 |
Less net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 |
Net income attributable to Oppenheimer Holdings Inc. | $5,237 | $2,322 | $11,748 | $87 |
Earnings per share attributable to Oppenheimer Holdings Inc. | ' | ' | ' | ' |
Basic | $0.38 | $0.17 | $0.86 | $0.01 |
Diluted | $0.37 | $0.16 | $0.83 | $0.01 |
Dividends declared per share | $0.11 | $0.11 | $0.33 | $0.33 |
Weighted average shares | ' | ' | ' | ' |
Basic | 13,604,276 | 13,610,991 | 13,606,527 | 13,599,431 |
Diluted | 14,171,802 | 14,161,257 | 14,110,131 | 13,937,016 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net income for the period | $5,508 | $3,024 | $12,467 | $2,516 | ||||
Other comprehensive income (loss) | ' | ' | ' | ' | ||||
Currency translation adjustment | 656 | [1] | 180 | [1] | 1,156 | [1] | -474 | [1] |
Comprehensive income for the period | 6,164 | 3,204 | 13,623 | 2,042 | ||||
Net income attributable to non-controlling interests, net of tax | 271 | 702 | 719 | 2,429 | ||||
Comprehensive income (loss) attributable to Oppenheimer Holdings Inc. | $5,893 | $2,502 | $12,904 | ($387) | ||||
[1] | (1) Other comprehensive income (loss) is attributable to Oppenheimer Holdings Inc. No other comprehensive income (loss) is attributable to non-controlling interests. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income for the period | $12,467 | $2,516 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization of office facilities and leasehold improvements | 7,434 | 8,019 |
Deferred income taxes | 13,862 | -8,317 |
Amortization of notes receivable | 14,086 | 14,679 |
Amortization of debt issuance costs | 479 | 479 |
Amortization of intangible assets | ' | 3,244 |
Provision for (reversal of) credit losses | 178 | -308 |
Share-based compensation | 3,966 | 3,030 |
Decrease (increase) in operating assets: | ' | ' |
Cash and securities segregated for regulatory and other purposes | -3,569 | 944 |
Deposits with clearing organizations | 900 | -33,103 |
Receivable from brokers, dealers and clearing organizations | 84,192 | -73,476 |
Receivable from customers | -55,670 | 52,954 |
Income tax receivable | -5,701 | 646 |
Securities purchased under agreements to resell | ' | 837,513 |
Securities owned | -322,727 | -117,049 |
Notes receivable | -9,875 | -9,967 |
Other assets | -58,428 | 51,965 |
Increase (decrease) in operating liabilities: | ' | ' |
Drafts payable | -20,421 | -14,667 |
Payable to brokers, dealers and clearing organizations | 61,725 | -83,915 |
Payable to customers | -1,467 | 70,690 |
Securities sold under agreements to repurchase | 238,462 | -730,066 |
Securities sold, but not yet purchased | 69,615 | 33,120 |
Accrued compensation | -17,340 | -19,675 |
Accounts payable and other liabilities | 10,780 | -14,719 |
Cash provided by (used in) operating activities | 22,948 | -25,463 |
Cash flows from investing activities | ' | ' |
Purchase of office facilities | -12,642 | -12,390 |
Cash used in investing activities | -12,642 | -12,390 |
Cash flows from financing activities | ' | ' |
Cash dividends paid on Class A non-voting and Class B voting common stock | -4,494 | -4,489 |
Issuance of Class A non-voting common stock | 85 | ' |
Repurchase of Class A non-voting common stock for cancellation | -2,314 | -1,766 |
Tax deficiency from share-based awards | -92 | -137 |
(Decrease) increase in bank call loans, net | -33,500 | 67,100 |
Cash (used in) provided by financing activities | -40,315 | 60,708 |
Net (decrease) increase in cash and cash equivalents | -30,009 | 22,855 |
Cash and cash equivalents, beginning of period | 135,366 | 70,329 |
Cash and cash equivalents, end of period | 105,357 | 93,184 |
Schedule of non-cash financing activities | ' | ' |
Employee share plan issuance | 1,492 | 1,322 |
Acquisition of shares of Oppenheimer Multifamily Housing & Healthcare Finance, Inc. | ' | -3,000 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid during the periods for interest | 14,993 | 24,237 |
Cash paid during the periods for income taxes, net of refunds | $4,446 | $10,492 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Share Capital [Member] | Share Capital [Member] | Contributed Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-Controlling Interest [Member] | |
In Thousands | Class A Stock [Member] | |||||||
Balance at Dec. 31, 2011 | ' | $62,726 | ' | $36,832 | $408,720 | ($208) | $5,333 | |
Stockholders' equity of Oppenheimer Holdings Inc. | 505,095 | ' | ' | ' | ' | ' | ' | |
Tax deficiency from share-based awards | ' | ' | ' | -137 | ' | ' | ' | |
Net income for the period attributable to Oppenheimer Holdings Inc. | 87 | ' | ' | ' | 87 | ' | ' | |
Net income attributable to non-controlling interest, net of tax | 2,429 | ' | ' | ' | ' | ' | 2,429 | |
Currency translation adjustment | -474 | [1] | ' | ' | ' | ' | -474 | ' |
Issuance of Class A non-voting common stock | ' | ' | 1,322 | ' | ' | ' | ' | |
Share-based expense | ' | ' | ' | 2,964 | ' | ' | ' | |
Dividends paid ($0.33 per share in 2013 and 2012) | ' | ' | ' | ' | -4,489 | ' | ' | |
Repurchase of Class A non-voting common stock for cancellation | ' | ' | -1,766 | ' | ' | ' | ' | |
Vested employee share plan awards | ' | ' | ' | -1,316 | ' | ' | ' | |
Acquisition of non-controlling interest | ' | ' | ' | 834 | ' | ' | -3,834 | |
Balance at Sep. 30, 2012 | 509,023 | 62,282 | ' | 39,177 | 404,318 | -682 | 3,928 | |
Balance at Dec. 31, 2012 | 505,001 | 62,181 | ' | 39,231 | 399,121 | 207 | 4,261 | |
Stockholders' equity of Oppenheimer Holdings Inc. | 510,293 | ' | ' | ' | ' | ' | ' | |
Tax deficiency from share-based awards | ' | ' | ' | -92 | ' | ' | ' | |
Net income for the period attributable to Oppenheimer Holdings Inc. | 11,748 | ' | ' | ' | 11,748 | ' | ' | |
Net income attributable to non-controlling interest, net of tax | 719 | ' | ' | ' | ' | ' | 719 | |
Currency translation adjustment | 1,156 | [1] | ' | ' | ' | ' | 1,156 | ' |
Issuance of Class A non-voting common stock | ' | ' | 1,577 | ' | ' | ' | ' | |
Share-based expense | ' | ' | ' | 3,863 | ' | ' | ' | |
Dividends paid ($0.33 per share in 2013 and 2012) | ' | ' | ' | ' | -4,494 | ' | ' | |
Repurchase of Class A non-voting common stock for cancellation | ' | ' | -2,314 | ' | ' | ' | ' | |
Vested employee share plan awards | ' | ' | ' | -1,891 | ' | ' | ' | |
Balance at Sep. 30, 2013 | $515,273 | $61,444 | ' | $41,111 | $406,375 | $1,363 | $4,980 | |
[1] | (1) Other comprehensive income (loss) is attributable to Oppenheimer Holdings Inc. No other comprehensive income (loss) is attributable to non-controlling interests. |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (Retained Earnings [Member], USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Retained Earnings [Member] | ' | ' |
Dividends | $0.33 | $0.33 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
1. Organization and basis of presentation | |
Organization | |
Oppenheimer Holdings Inc. (“OPY”) is incorporated under the laws of the State of Delaware. The condensed consolidated financial statements include the accounts of OPY and its subsidiaries (together, the “Company”). The principal subsidiaries of OPY are Oppenheimer & Co. Inc. (“Oppenheimer”), a registered broker dealer in securities, Oppenheimer Asset Management Inc. (“OAM”) and its wholly owned subsidiary, Oppenheimer Investment Management Inc. (“OIM”), both registered investment advisors under the Investment Advisors Act of 1940, Oppenheimer Trust Company (“Oppenheimer Trust”), a limited purpose trust company chartered by the State of New Jersey to provide fiduciary services such as trust and estate administration and investment management, Oppenheimer Multifamily Housing & Healthcare Finance, Inc. (“OMHHF”), which is engaged in commercial mortgage origination and servicing, OPY Credit Corp., which offers syndication as well as trading of issued corporate loans, Oppenheimer Europe Ltd., based in the United Kingdom, with an office in the Isle of Jersey, which provides institutional equities and fixed income brokerage and corporate financial services and is regulated by the Financial Conduct Authority, and Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides assistance in accessing the U.S. equities markets and limited mergers and acquisitions advisory services to Asia-based companies, as well as offering fixed income brokerage services to institutional investors. | |
Oppenheimer provides its services from 96 offices in 25 states located throughout the United States and in 5 foreign jurisdictions. Oppenheimer owns Freedom Investments, Inc. (“Freedom”), a registered broker dealer in securities, which also operates as the BUYandHOLD division of Freedom, offering on-line discount brokerage and dollar-based investing services, and Oppenheimer Israel (OPCO) Ltd., which is engaged in offering investment services in the State of Israel. Freedom has been approved to operate as a representative office in Beijing, China. Oppenheimer holds a trading permit on the New York Stock Exchange and is a member of several other regional exchanges in the United States. | |
Basis of Presentation | |
The accompanying condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). The accompanying December 31, 2012 condensed consolidated statement of balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Although these estimates are based on management’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for any future interim or annual period. | |
Accounting standards require the Company to present non-controlling interests as a separate component of stockholders’ equity on the Company’s condensed consolidated balance sheet. On September 28, 2012, the Company purchased additional shares of OMHHF for $3 million, representing 16.32% of OMHHF. As of September 30, 2013, the Company owned 83.68% of OMHHF and the non-controlling interest recorded in the condensed consolidated balance sheet was $5.0 million. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
New Accounting Pronouncements | ' |
2. New accounting pronouncements | |
Recently Adopted | |
On July 27, 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which gives entities the option of performing a qualitative assessment before the quantitative analysis. If entities determine the fair value of a reporting unit is more likely than not less than the carrying amount, the impairment needs to be assessed. The ASU is effective for fiscal years beginning after September 15, 2012 and early adoption is permitted. The Company evaluated this ASU and decided to continue to perform quantitative analysis for indefinite-lived intangible assets impairment. | |
On December 31, 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” which requires new disclosures about balance sheet offsetting and related arrangements. For derivatives and financial assets and liabilities, the ASU requires disclosure of gross asset and liability amounts, amounts offset on the balance sheet, and amounts subject to the offsetting requirements but not offset on the balance sheet. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities.” The ASU clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU No. 2011-11. The ASU limits the scope of the new balance sheet offsetting disclosures in ASU No. 2011-11 to derivatives, repurchase agreements, and securities lending transactions. The effective date of the ASU coincides with the effective date of the disclosure requirements in ASU No. 2011-11. The Company adopted this guidance in the period ended March 31, 2013. See Note 5, Financial Instruments, below. | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company adopted this guidance in the period ended March 31, 2013. | |
Recently Issued | |
In June 2013, the FASB issued ASU No. 2013-08 “Financial Services – Investment Companies, Amendments to the Scope, Measurement and Disclosure Requirement.” The ASU clarifies the characteristics of an investment company by amending the measurement criteria for certain interests in other investment companies. Additionally, the ASU introduces new disclosure requirements. The ASU is effective for the annual reporting period in the fiscal year that begins after December 15, 2013. The Company is currently evaluating the impact, if any, that the ASU will have on its financial condition, results of operations and cash flows. | |
In July 2013, the FASB issued ASU No. 2013-11 “Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU provides guidance that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. The ASU is effective for the annual reporting period in the fiscal year that begins after December 15, 2013. The Company is currently evaluating the impact, if any, that the ASU will have on its financial condition, results of operations and cash flows. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
3. Earnings per share | |||||||||||||||||
Basic earnings per share was computed by dividing net income attributable to Oppenheimer Holdings Inc. by the weighted average number of shares of Class A non-voting common stock (“Class A Stock”) and Class B voting common stock (“Class B Stock”) outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and the effects of the warrants, options to purchase the Class A Stock and restricted stock awards of Class A Stock using the treasury stock method. | |||||||||||||||||
Earnings per share has been calculated as follows: | |||||||||||||||||
(Expressed in thousands, except number of shares and per share amounts) | |||||||||||||||||
For the Three months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic weighted average number of shares outstanding | 13,604,276 | 13,610,991 | 13,606,527 | 13,599,431 | |||||||||||||
Net dilutive effect of warrant, treasury method (1) | — | — | — | — | |||||||||||||
Net dilutive effect of share-based awards, treasury method (2) | 567,526 | 550,266 | 503,604 | 337,585 | |||||||||||||
Diluted weighted average number of shares outstanding | 14,171,802 | 14,161,257 | 14,110,131 | 13,937,016 | |||||||||||||
Net income for the period | $ | 5,508 | $ | 3,024 | $ | 12,467 | $ | 2,516 | |||||||||
Net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 | |||||||||||||
Net income attributable to Oppenheimer Holdings Inc. | $ | 5,237 | $ | 2,322 | $ | 11,748 | $ | 87 | |||||||||
Basic earnings per share | $ | 0.38 | $ | 0.17 | $ | 0.86 | $ | 0.01 | |||||||||
Diluted earnings per share | $ | 0.37 | $ | 0.16 | $ | 0.83 | $ | 0.01 | |||||||||
-1 | As part of the consideration for the 2008 acquisition of certain businesses from CIBC World Markets Corp. (“CIBC”), the Company issued a warrant to CIBC to purchase 1 million shares of Class A Stock of the Company at $48.62 per share exercisable five years from the January 14, 2008 acquisition date. The warrants expired on April 13, 2013. For the three and nine months ended September 30, 2012, the effect of the warrants was anti-dilutive. | ||||||||||||||||
-2 | For both the three and nine months ended September 30, 2013, the diluted earnings per share computation does not include the anti-dilutive effect of 57,573 shares of Class A Stock granted under share-based compensation arrangements (1,059,638 shares of Class A Stock granted under share-based compensation arrangements together with the warrant described in (1) for the three and nine months ended September 30, 2012). |
Receivable_from_and_Payable_to
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Brokers And Dealers [Abstract] | ' | ||||||||
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | ' | ||||||||
4. Receivable from and payable to brokers, dealers and clearing organizations | |||||||||
(Expressed in thousands) | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Receivable from brokers, dealers and clearing organizations consist of: | |||||||||
Securities borrowed | $ | 299,037 | $ | 365,642 | |||||
Receivable from brokers | 44,222 | 41,091 | |||||||
Securities failed to deliver | 33,649 | 10,031 | |||||||
Clearing organizations | 100 | 399 | |||||||
Omnibus accounts | 17,524 | 28,212 | |||||||
Other | 975 | 34,324 | |||||||
$ | 395,507 | $ | 479,699 | ||||||
Payable to brokers, dealers and clearing organizations consist of: | |||||||||
Securities loaned | $ | 251,751 | $ | 190,387 | |||||
Securities failed to receive | 12,774 | 11,315 | |||||||
Clearing organizations and other | 1,418 | 2,516 | |||||||
$ | 265,943 | $ | 204,218 | ||||||
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||
5. Financial instruments | |||||||||||||||||||||||||
Securities owned and securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. The Company’s other financial instruments are generally short-term in nature or have variable interest rates and as such their carrying values approximate fair value, with the exception of notes receivable from employees which are carried at cost. | |||||||||||||||||||||||||
Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Owned | Sold | Owned | Sold | ||||||||||||||||||||||
U.S. Government, agency & sovereign obligations | $ | 805,586 | $ | 169,795 | $ | 525,255 | $ | 131,930 | |||||||||||||||||
Corporate debt and other obligations | 29,622 | 12,115 | 14,428 | 1,858 | |||||||||||||||||||||
Mortgage and other asset-backed securities | 3,626 | 4 | 2,920 | 18 | |||||||||||||||||||||
Municipal obligations | 77,421 | 629 | 59,010 | 467 | |||||||||||||||||||||
Convertible bonds | 46,870 | 19,618 | 49,130 | 8,868 | |||||||||||||||||||||
Corporate equities | 50,740 | 40,663 | 43,708 | 29,884 | |||||||||||||||||||||
Other | 68,604 | 241 | 65,291 | 425 | |||||||||||||||||||||
Total | $ | 1,082,469 | $ | 243,065 | $ | 759,742 | $ | 173,450 | |||||||||||||||||
Securities owned and securities sold, but not yet purchased, consist of trading and investment securities at fair values. Included in securities owned at September 30, 2013 are corporate equities with estimated fair values of approximately $14.1 million ($14.0 million at December 31, 2012), which are related to deferred compensation liabilities to certain employees included in accrued compensation on the condensed consolidated balance sheet. As of September 30, 2013, the Company did not have any exposure to European sovereign debt. | |||||||||||||||||||||||||
Valuation Techniques | |||||||||||||||||||||||||
A description of the valuation techniques applied and inputs used in measuring the fair value of the Company’s financial instruments is as follows: | |||||||||||||||||||||||||
U.S. Government Obligations | |||||||||||||||||||||||||
U.S. Treasury securities are valued using quoted market prices obtained from active market makers and inter-dealer brokers and, accordingly, are categorized in Level 1 of the fair value hierarchy. | |||||||||||||||||||||||||
U.S. Agency Obligations | |||||||||||||||||||||||||
U.S. agency securities consist of agency issued debt securities and mortgage pass-through securities. Non-callable agency issued debt securities are generally valued using quoted market prices. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of mortgage pass-through securities are model driven with respect to spreads of the comparable To-be-announced (“TBA”) security. Actively traded non-callable agency issued debt securities are categorized in Level 1 of the fair value hierarchy. Callable agency issued debt securities and mortgage pass-through securities are generally categorized in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Sovereign Obligations | |||||||||||||||||||||||||
The fair value of sovereign obligations is determined based on quoted market prices when available or a valuation model that generally utilizes interest rate yield curves and credit spreads as inputs. Sovereign obligations are categorized in Level 1 or 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Corporate Debt and Other Obligations | |||||||||||||||||||||||||
The fair value of corporate bonds is estimated using recent transactions, broker quotations and bond spread information. Corporate bonds are generally categorized in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Mortgage and Other Asset-Backed Securities | |||||||||||||||||||||||||
The Company holds non-agency securities collateralized by home equity and various other types of collateral which are valued based on external pricing and spread data provided by independent pricing services and are generally categorized in Level 2 of the fair value hierarchy. When specific external pricing is not observable, the valuation is based on yields and spreads for comparable bonds and, consequently, the positions are categorized in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Municipal Obligations | |||||||||||||||||||||||||
The fair value of municipal obligations is estimated using recently executed transactions, broker quotations, and bond spread information. These obligations are generally categorized in Level 2 of the fair value hierarchy; in instances where significant inputs are unobservable, they are categorized in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Convertible Bonds | |||||||||||||||||||||||||
The fair value of convertible bonds is estimated using recently executed transactions and dollar-neutral price quotations, where observable. When observable price quotations are not available, fair value is determined based on cash flow models using yield curves and bond spreads as key inputs. Convertible bonds are generally categorized in Level 2 of the fair value hierarchy; in instances where significant inputs are unobservable, they are categorized in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
Corporate Equities | |||||||||||||||||||||||||
Equity securities and options are generally valued based on quoted prices from the exchange or market where traded and categorized as Level 1 of the fair value hierarchy. To the extent quoted prices are not available, fair values are generally derived using bid/ask spreads, and these securities are generally categorized in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
In February 2010, Oppenheimer finalized settlements with each of the New York Attorney General’s office (“NYAG”) and the Massachusetts Securities Division (“MSD”) concluding investigations and administrative proceedings concerning Oppenheimer’s marketing and sale of Auction Rate Securities (“ARS”). Pursuant to those settlements and legal settlements, as of September 30, 2013, the Company purchased and holds approximately $85.9 million in ARS from its clients pursuant to several purchase offers and legal settlements. The Company’s purchases of ARS from its clients will, subject to the terms and conditions of the settlements, continue on a periodic basis pursuant to the settlements with the Regulators. In addition, the Company is committed to purchase another $36.2 million in ARS from clients through 2016. The ultimate amount of ARS to be repurchased by the Company cannot be predicted with any certainty and will be impacted by redemptions by issuers and legal and other actions by clients during the relevant period, which cannot be predicted. The Company also held $150,000 in ARS in its proprietary trading account as of September 30, 2013 as a result of the failed auctions in February 2008. These ARS positions primarily represent Auction Rate Preferred Securities issued by closed-end funds and, to a lesser extent, Municipal Auction Rate Securities which are municipal bonds wrapped by municipal bond insurance and Student Loan Auction Rate Securities which are asset-backed securities backed by student loans. | |||||||||||||||||||||||||
Interest rates on ARS typically reset through periodic auctions. Due to the auction mechanism and generally liquid markets, ARS have historically been categorized as Level 1 of the fair value hierarchy. Beginning in February 2008, uncertainties in the credit markets resulted in substantially all of the ARS market experiencing failed auctions. Once the auctions failed, the ARS could no longer be valued using observable prices set in the auctions. The Company has used less observable determinants of the fair value of ARS, including the strength in the underlying credits, announced issuer redemptions, completed issuer redemptions, and announcements from issuers regarding their intentions with respect to their outstanding ARS. The Company has also developed an internal methodology to discount for the lack of liquidity and non-performance risk of the failed auctions. Key inputs include spreads on comparable Treasury yields to derive a discount rate, an estimate of the ARS duration, and yields based on current auctions in comparable securities that have not failed. Additional information regarding the valuation technique and inputs used is as follows: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at September 30, 2013 | |||||||||||||||||||||||||
Product | Principal | Valuation | Fair Value | Valuation Technique | Unobservable Input | Range | Weighted | ||||||||||||||||||
Adjustment | Average | ||||||||||||||||||||||||
Auction Rate Securities(1) | $ | 122,132 | $ | 7,917 | $ | 114,215 | Discounted Cash Flow | Discount Rate | 1.10% to 3.21% | 1.59 | % | ||||||||||||||
Duration | 4 to 7 Years | 4.4 Years | |||||||||||||||||||||||
Current Yield(2) | 0.12% to 1.29% | 0.27 | % | ||||||||||||||||||||||
-1 | Includes ARS owned by the Company of $85.9 million included in the condensed consolidated balance sheet at September 30, 2013 as well as additional commitments to purchase ARS from clients of $36.2 million which is disclosed in these notes to the condensed consolidated financial statements. | ||||||||||||||||||||||||
-2 | Based on current auctions in comparable securities that have not failed. | ||||||||||||||||||||||||
The fair value of ARS is particularly sensitive to movements in interest rates. Increases in short-term interest rates would increase the discount rate input used in the ARS valuation and thus reduce the fair value of the ARS (increase the valuation adjustment). Conversely, decreases in short-term interest rates would decrease the discount rate and thus increase the fair value of ARS (decrease the valuation adjustment). However, an increase (decrease) in the discount rate input would be partially mitigated by an increase (decrease) in the current yield earned on the underlying ARS asset increasing the cash flows and thus the fair value. Furthermore, movements in short term interest rates would likely impact the ARS duration (i.e., sensitivity of the price to a change in interest rates), which would also have a mitigating effect on interest rate movements. For example, as interest rates increase, issuers of ARS have an incentive to redeem outstanding securities as servicing the interest payments gets prohibitively expensive which would lower the duration assumption thereby increasing the ARS fair value. Alternatively, ARS issuers are less likely to redeem ARS in a lower interest rate environment as it is a relatively inexpensive source of financing which would increase the duration assumption thereby decreasing the ARS fair value. | |||||||||||||||||||||||||
Due to the less observable nature of these inputs, the Company categorizes ARS in Level 3 of the fair value hierarchy. As of September 30, 2013, the Company had a valuation adjustment (unrealized loss) of $7.9 million for ARS which is included in principal transactions on the condensed consolidated statements of operations. | |||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||
In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment. Due to the illiquid nature of these investments and difficulties in obtaining observable inputs, these investments are included in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||
The following table provides information about the Company’s investments in Company-sponsored funds at September 30, 2013: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value | Unfunded | Redemption | Redemption | ||||||||||||||||||||||
Commitments | Frequency | Notice Period | |||||||||||||||||||||||
Hedge funds (1) | $ | 1,777 | $ | — | Quarterly - Annually | 30 - 120 Days | |||||||||||||||||||
Private equity funds (2) | 3,662 | 802 | N/A | N/A | |||||||||||||||||||||
$ | 5,439 | $ | 802 | ||||||||||||||||||||||
-1 | Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. | ||||||||||||||||||||||||
-2 | Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature these funds, investors are not permitted to make withdrawals without consent of the general partner. | ||||||||||||||||||||||||
Derivative Contracts | |||||||||||||||||||||||||
From time to time, the Company transacts in exchange-traded and over-the-counter derivative transactions to manage its interest rate risk. Exchange-traded derivatives, namely U.S. Treasury futures, Federal funds futures and Eurodollar futures, are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Over-the-counter derivatives, namely interest rate swap and interest rate cap contracts, are valued using a discounted cash flow model and the Black-Scholes model, respectively, using observable interest rate inputs and are categorized in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
As described below in “Credit Concentrations”, the Company participates in loan syndications and operates as an underwriting agent in leveraged financing transactions where it utilizes a warehouse facility provided by a commercial bank to extend financing commitments to third-party borrowers identified by the Company. The Company uses broker quotations on loans trading in the secondary market as a proxy to determine the fair value of the underlying loan commitment which is categorized in Level 3 of the fair value hierarchy. The Company also purchases and sells loans in its proprietary trading book. The Company uses broker quotations to determine the fair value of loan positions held which are categorized in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
The Company from time to time enters into securities financing transactions that mature on the same date as the underlying collateral (referred to as “repo-to-maturity” transactions). Such transactions are treated as a sale of financial assets and a forward repurchase commitment, or conversely as a purchase of financial assets and a forward reverse repurchase commitment. The forward repurchase and reverse repurchase commitments are valued based on the spread between the market value of the government security and the underlying collateral and are categorized in Level 2 of the fair value hierarchy. As of September 30, 2013, the Company did not have any repo-to-maturity transactions. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
The Company’s assets and liabilities, recorded at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, have been categorized based upon the above fair value hierarchy as follows: | |||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 48,476 | $ | — | $ | — | $ | 48,476 | |||||||||||||||||
Securities segregated for regulatory and other purposes | 11,500 | — | — | 11,500 | |||||||||||||||||||||
Deposits with clearing organizations | 9,094 | — | — | 9,094 | |||||||||||||||||||||
Securities owned | |||||||||||||||||||||||||
U.S Treasury securities | 774,540 | — | — | 774,540 | |||||||||||||||||||||
U.S. Agency securities | 11,675 | 17,558 | — | 29,233 | |||||||||||||||||||||
Sovereign obligations | — | 1,813 | — | 1,813 | |||||||||||||||||||||
Corporate debt and other obligations | — | 29,622 | — | 29,622 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 3,626 | — | 3,626 | |||||||||||||||||||||
Municipal obligations | — | 63,919 | 13,502 | 77,421 | |||||||||||||||||||||
Convertible bonds | — | 46,870 | — | 46,870 | |||||||||||||||||||||
Corporate equities | 50,740 | — | — | 50,740 | |||||||||||||||||||||
Other | 1,439 | — | 67,165 | 68,604 | |||||||||||||||||||||
Securities owned, at fair value | 838,394 | 163,408 | 80,667 | 1,082,469 | |||||||||||||||||||||
Investments (1) | 10,636 | 44,732 | 6,126 | 61,494 | |||||||||||||||||||||
TBAs | — | 3,403 | — | 3,403 | |||||||||||||||||||||
Total | $ | 918,100 | $ | 211,543 | $ | 86,793 | $ | 1,216,436 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities sold, but not yet purchased | |||||||||||||||||||||||||
U.S Treasury securities | $ | 164,770 | $ | — | $ | — | $ | 164,770 | |||||||||||||||||
U.S. Agency securities | 4,999 | 26 | — | 5,025 | |||||||||||||||||||||
Sovereign obligations | — | — | — | — | |||||||||||||||||||||
Corporate debt and other obligations | — | 12,115 | — | 12,115 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 4 | — | 4 | |||||||||||||||||||||
Municipal obligations | — | 629 | — | 629 | |||||||||||||||||||||
Convertible bonds | — | 19,618 | — | 19,618 | |||||||||||||||||||||
Corporate equities | 40,663 | — | — | 40,663 | |||||||||||||||||||||
Other | 241 | — | — | 241 | |||||||||||||||||||||
Securities sold, but not yet purchased at fair value | 210,673 | 32,392 | — | 243,065 | |||||||||||||||||||||
Investments | 408 | — | — | 408 | |||||||||||||||||||||
Derivative contracts | 771 | 204 | 2,412 | 3,387 | |||||||||||||||||||||
TBAs | — | 536 | — | 536 | |||||||||||||||||||||
Total | $ | 211,852 | $ | 33,132 | $ | 2,412 | $ | 247,396 | |||||||||||||||||
-1 | Included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 58,945 | $ | — | $ | — | $ | 58,945 | |||||||||||||||||
Securities segregated for regulatory and other purposes | 11,499 | — | — | 11,499 | |||||||||||||||||||||
Deposits with clearing organizations | 9,095 | — | — | 9,095 | |||||||||||||||||||||
Securities owned | |||||||||||||||||||||||||
U.S Treasury securities | 497,546 | — | — | 497,546 | |||||||||||||||||||||
U.S. Agency securities | — | 27,690 | — | 27,690 | |||||||||||||||||||||
Sovereign obligations | — | 19 | — | 19 | |||||||||||||||||||||
Corporate debt and other obligations | 2,459 | 11,969 | — | 14,428 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 2,880 | 40 | 2,920 | |||||||||||||||||||||
Municipal obligations | — | 49,616 | 9,394 | 59,010 | |||||||||||||||||||||
Convertible bonds | — | 49,130 | — | 49,130 | |||||||||||||||||||||
Corporate equities | 31,958 | 11,750 | — | 43,708 | |||||||||||||||||||||
Other | 2,328 | — | 62,963 | 65,291 | |||||||||||||||||||||
Securities owned, at fair value | 534,291 | 153,054 | 72,397 | 759,742 | |||||||||||||||||||||
Investments (1) | 10,477 | 37,088 | 12,954 | 60,519 | |||||||||||||||||||||
TBAs | — | 3,188 | — | 3,188 | |||||||||||||||||||||
$ | 624,307 | $ | 193,330 | $ | 85,351 | $ | 902,988 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities sold, but not yet purchased | |||||||||||||||||||||||||
U.S Treasury securities | $ | 131,899 | $ | — | $ | — | $ | 131,899 | |||||||||||||||||
U.S. Agency securities | — | 31 | — | 31 | |||||||||||||||||||||
Corporate debt and other obligations | — | 1,858 | — | 1,858 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 18 | — | 18 | |||||||||||||||||||||
Municipal obligations | — | 467 | — | 467 | |||||||||||||||||||||
Convertible bonds | — | 8,868 | — | 8,868 | |||||||||||||||||||||
Corporate equities | 20,946 | 8,938 | — | 29,884 | |||||||||||||||||||||
Other | 325 | — | 100 | 425 | |||||||||||||||||||||
Securities sold, but not yet purchased at fair value | 153,170 | 20,180 | 100 | 173,450 | |||||||||||||||||||||
Investments | 258 | — | — | 258 | |||||||||||||||||||||
Derivative contracts | 286 | 124 | 2,647 | 3,057 | |||||||||||||||||||||
TBAs | — | 175 | — | 175 | |||||||||||||||||||||
$ | 153,714 | $ | 20,479 | $ | 2,747 | $ | 176,940 | ||||||||||||||||||
-1 | Included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 assets and liabilities in the three and nine months ended September 30, 2013. | |||||||||||||||||||||||||
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 67 | $ | — | $ | — | $ | (8 | ) | $ | (59 | ) | $ | — | |||||||||||
Municipals (2) | 11,569 | (192 | ) | 2,275 | (150 | ) | — | 13,502 | |||||||||||||||||
Other (3) | 66,743 | (53 | ) | 475 | — | — | 67,165 | ||||||||||||||||||
Investments (4) | 12,974 | (413 | ) | 1,000 | (7,435 | ) | — | 6,126 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | — | — | — | — | — | — | |||||||||||||||||||
Derivative contracts | 2,329 | (83 | ) | — | — | — | 2,412 | ||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 12 | $ | 3 | $ | 11 | $ | — | $ | — | $ | 26 | |||||||||||||
Municipals (2) | 10,120 | (13 | ) | 655 | (90 | ) | — | 10,672 | |||||||||||||||||
Other (3) | 64,644 | 410 | 5,950 | (4,625 | ) | — | 66,379 | ||||||||||||||||||
Investments (4) | 12,760 | (41 | ) | 231 | (145 | ) | — | 12,805 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivative contracts | 2,334 | 81 | — | — | — | 2,253 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 40 | $ | — | $ | — | $ | (8 | ) | $ | (32 | ) | $ | — | |||||||||||
Municipals (2) | 9,394 | 733 | 3,725 | (350 | ) | — | 13,502 | ||||||||||||||||||
Other (3) | 62,963 | (1,173 | ) | 9,450 | (4,075 | ) | — | 67,165 | |||||||||||||||||
Investments (4) | 12,954 | 210 | 1,000 | (8,038 | ) | — | 6,126 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | 100 | — | 100 | — | — | — | |||||||||||||||||||
Derivative contracts | 2,647 | 235 | — | — | — | 2,412 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 16 | $ | (3 | ) | $ | 95 | $ | (80 | ) | $ | (2 | ) | $ | 26 | ||||||||||
Municipals (2) | 3,562 | (510 | ) | 9,960 | (2,340 | ) | — | 10,672 | |||||||||||||||||
Other (3) | 65,001 | (351 | ) | 20,675 | (18,946 | ) | — | 66,379 | |||||||||||||||||
Investments (4) | 12,482 | 396 | 358 | (442 | ) | 11 | 12,805 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | 50 | — | 50 | — | — | — | |||||||||||||||||||
Derivative contracts | 2,347 | 94 | — | — | — | 2,253 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value | |||||||||||||||||||||||||
The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value in the condensed consolidated balance sheet. The table below excludes non-financial assets and liabilities (e.g., office facilities and accrued compensation). | |||||||||||||||||||||||||
The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short period of time between their origination and expected maturity. The fair value of the Company’s 8.75% Senior Secured Notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the Notes trade. | |||||||||||||||||||||||||
The fair value of Mortgage Servicing Rights (“MSRs”) is based on observable and unobservable inputs and thus categorized as Level 3 in the fair value hierarchy. The fair value of MSRs is based on a discounted cash flow valuation methodology on a loan level basis that determines the present value of future cash flows expected to be realized. The fair value considers estimated future servicing fees and ancillary revenue, offset by the estimated costs to service the loans. The discounted cash flow model considers portfolio characteristics, contractually specified servicing fees, prepayment speed assumptions, delinquency rates, costs to service, late charges, and other ancillary revenue, and other economic factors such as interest rates. The fair value of MSRs is sensitive to changes in interest rates, including the effect on prepayment speeds. MSRs typically decrease in value when interest rates decline as declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that make up the MSR asset. | |||||||||||||||||||||||||
Assets and liabilities not measured at fair value on a recurring basis as of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurement: Assets | |||||||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash | $ | 56,881 | $ | 56,881 | $ | 56,881 | $ | — | $ | — | $ | 56,881 | |||||||||||||
Cash segregated for regulatory and other purposes | 25,069 | 25,069 | 25,069 | — | — | 25,069 | |||||||||||||||||||
Deposits with clearing organization | 15,960 | 15,960 | 15,960 | — | — | 15,960 | |||||||||||||||||||
Receivable from brokers and clearing organizations | |||||||||||||||||||||||||
Deposits paid for securities borrowed | 299,037 | 299,037 | — | 299,037 | — | 299,037 | |||||||||||||||||||
Receivables from brokers | 44,222 | 44,222 | — | 44,222 | — | 44,222 | |||||||||||||||||||
Securities failed to deliver | 33,649 | 33,649 | — | 33,649 | — | 33,649 | |||||||||||||||||||
Clearing organizations | 100 | 100 | — | 100 | — | 100 | |||||||||||||||||||
Omnibus accounts | 17,524 | 17,524 | — | 17,524 | — | 17,524 | |||||||||||||||||||
Other | 975 | 975 | — | 975 | — | 975 | |||||||||||||||||||
395,507 | 395,507 | — | 395,507 | — | 395,507 | ||||||||||||||||||||
Receivable from customers | 873,433 | 873,433 | — | 873,433 | — | 873,433 | |||||||||||||||||||
Notes receivable | 43,113 | 43,113 | — | — | 43,113 | 43,113 | |||||||||||||||||||
Other assets | |||||||||||||||||||||||||
Mortgage servicing rights (MSRs) | 28,121 | 38,453 | — | — | 38,453 | 38,453 | |||||||||||||||||||
Mortgage receivable (1) | 65,757 | 65,757 | — | 65,757 | — | 65,757 | |||||||||||||||||||
Escrow deposit (2) | 25,000 | 25,000 | 25,000 | — | — | 25,000 | |||||||||||||||||||
-1 | Mortgage receivable balance represents loan amounts outstanding after funding but prior to Government National Mortgage Association (“GNMA”) securitization. Amount funded by warehouse facility (warehouse payable) is included in accounts payable and other liabilities on condensed consolidated balance sheet (see note 4 below). Residual amount between asset and liability is funded with internally generated funds. | ||||||||||||||||||||||||
-2 | Represent escrow monies deposited with commercial bank. Corresponds with payable to third party in accounts payable and other liabilities on condensed consolidated balance sheet (see note 4 below). | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurement: Liabilities | |||||||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Drafts payable | $ | 36,165 | $ | 36,165 | $ | 36,165 | $ | — | $ | — | $ | 36,165 | |||||||||||||
Bank call loans | 94,800 | 94,800 | 94,800 | — | — | 94,800 | |||||||||||||||||||
Payables to brokers and clearing organizations | |||||||||||||||||||||||||
Deposits received for securities loaned | 251,751 | 251,751 | — | 251,751 | — | 251,751 | |||||||||||||||||||
Securities failed to receive | 12,774 | 12,774 | — | 12,774 | — | 12,774 | |||||||||||||||||||
Clearing organizations and other | 1,418 | 1,418 | — | 1,418 | — | 1,418 | |||||||||||||||||||
265,943 | 265,943 | — | 265,943 | — | 265,943 | ||||||||||||||||||||
Payables to customers | 690,911 | 690,911 | — | 690,911 | — | 690,911 | |||||||||||||||||||
Securities sold under agreements to repurchase | 630,853 | 630,853 | — | 630,853 | — | 630,853 | |||||||||||||||||||
Accounts payable and other liabilities | |||||||||||||||||||||||||
Warehouse payable (3) | 49,137 | 49,137 | — | 49,137 | — | 49,137 | |||||||||||||||||||
Payable to third party (4) | 25,000 | 25,000 | 25,000 | — | — | 25,000 | |||||||||||||||||||
Senior secured notes | 195,000 | 208,529 | — | 208,529 | — | 208,529 | |||||||||||||||||||
-3 | Warehouse payable represents loans outstanding under warehouse facility provided by commercial bank but prior to GNMA securitization. Used to fund mortgage receivable in other assets on condensed consolidated balance sheet (see note 1 above). | ||||||||||||||||||||||||
-4 | Corresponds with escrow deposit in other assets on condensed consolidated balance sheet (see note 2 above). | ||||||||||||||||||||||||
Fair Value Option | |||||||||||||||||||||||||
The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company may make a fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Company has elected to apply the fair value option to its loan trading portfolio which resides in OPY Credit Corp. and is included in other assets on the condensed consolidated balance sheet. Management has elected this treatment as it is consistent with the manner in which the business is managed as well as the way that financial instruments in other parts of the business are recorded. There were no loan positions held in the secondary loan trading portfolio at September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||
The Company also elected the fair value option for those securities sold under agreements to repurchase (“repurchase agreements”) and securities purchased under agreements to resell (“reverse repurchase agreements”) that do not settle overnight or have an open settlement date or that are not accounted for as purchase and sale agreements (such as repo-to-maturity transactions). The Company has elected the fair value option for these instruments to more accurately reflect market and economic events in its earnings and to mitigate a potential imbalance in earnings caused by using different measurement attributes (i.e. fair value versus carrying value) for certain assets and liabilities. At September 30, 2013, the fair value of the reverse repurchase agreements and repurchase agreements were $nil and $nil, respectively. | |||||||||||||||||||||||||
Fair Value of Derivative Instruments | |||||||||||||||||||||||||
The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. Interest rate swaps and interest rate caps are entered into to manage the Company’s interest rate risk associated with floating-rate borrowings. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the condensed consolidated balance sheet. The Company designates interest rate swaps and interest rate caps as cash flow hedges of floating-rate borrowings. | |||||||||||||||||||||||||
Cash flow hedges used for asset and liability management | |||||||||||||||||||||||||
For derivative instruments that were designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative was reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | |||||||||||||||||||||||||
On January 20, 2009, the Company entered into an interest rate cap contract, incorporating a series of purchased caplets with fixed maturity dates ending December 31, 2012, to hedge the interest payments associated with its floating rate Subordinated Note, which was subject to change due to changes in 3-Month LIBOR. With the repayment of the Subordinated Note in the second quarter of 2011, this cap was no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012. The Company recorded $nil in interest expense with respect to the interest rate cap for both the three and nine months ended September 30, 2012. At September 30, 2013, there was no cash flow hedges used for asset and liability management. | |||||||||||||||||||||||||
Foreign exchange hedges | |||||||||||||||||||||||||
From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekels. Such hedges have not been designated as accounting hedges. At September 30, 2013, there were no forward or option contracts outstanding. | |||||||||||||||||||||||||
Derivatives used for trading and investment purposes | |||||||||||||||||||||||||
Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The futures contracts the Company used include U.S. Treasury notes, Federal Funds and Eurodollar contracts. At September 30, 2013, the Company had 468 open short contracts for 10-year U.S. Treasury notes with a fair value of $771,000 used primarily as an economic hedge of interest rate risk associated with a portfolio of fixed income investments. At September 30, 2013, the Company had 1,184 open contracts for Federal Funds futures with a fair value of approximately $180,000 used primarily as an economic hedge of interest rate risk associated with government trading activities. | |||||||||||||||||||||||||
The notional amounts and fair values of the Company’s derivatives at September 30, 2013 and December 31, 2012 by product were as follows: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value of Derivative Instruments at September 30, 2013 | |||||||||||||||||||||||||
Description | Notional | Fair Value | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures (2) | $ | 73,600 | $ | 771 | ||||||||||||||||||||
Federal Funds Futures (2) | 5,920,000 | 180 | |||||||||||||||||||||||
Euro Dollars Futures (2) | 105,000 | 24 | |||||||||||||||||||||||
Other contracts | ARS purchase commitments (3) | 36,197 | 2,412 | ||||||||||||||||||||||
$ | 6,134,797 | $ | 3,387 | ||||||||||||||||||||||
-1 | See “Fair Value of Derivative Instruments” above for description of derivative financial instruments. | ||||||||||||||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
-3 | Included in other liabilities on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value of Derivative Instruments at December 31, 2012 | |||||||||||||||||||||||||
Description | Notional | Fair Value | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures (2) | $ | 56,000 | $ | 286 | ||||||||||||||||||||
Federal Funds Futures (2) | 6,070,000 | 120 | |||||||||||||||||||||||
Euro Dollars Futures (2) | 15,000 | 4 | |||||||||||||||||||||||
Other contracts | ARS purchase commitments (3) | 38,343 | 2,647 | ||||||||||||||||||||||
$ | 6,179,343 | $ | 3,057 | ||||||||||||||||||||||
-1 | See “Fair Value of Derivative Instruments” above for description of derivative financial instruments. | ||||||||||||||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
-3 | Included in other liabilities on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
The following table presents the location and fair value amounts of the Company’s derivative instruments and their effect on the condensed consolidated statement of operations for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | $ | (356 | ) | ||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (235 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | (36 | ) | ||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 83 | ||||||||||||||||||||||
$ | (544 | ) | |||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Interest rate contracts | Caps (1) | N/A | $ | — | |||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | (395 | ) | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (334 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | 18 | |||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 81 | ||||||||||||||||||||||
$ | (630 | ) | |||||||||||||||||||||||
-1 | As noted above in “Cash flow hedges used for asset and liability management”, interest rate caps are used to hedge interest rate risk associated with the Subordinated Note due 2014 ($100.0 million). With the repayment of the Subordinated Note in the second quarter of 2011, this cap is no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012. | ||||||||||||||||||||||||
The following table presents the location and fair value amounts of the Company’s derivative instruments and their effect on the condensed consolidated statement of operations for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | $ | 446 | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (287 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | 35 | |||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | (235 | ) | |||||||||||||||||||||
$ | (41 | ) | |||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Interest rate contracts | Caps (1) | N/A | $ | (12 | ) | ||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | (1,032 | ) | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (74 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | (9 | ) | ||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 94 | ||||||||||||||||||||||
$ | (1,033 | ) | |||||||||||||||||||||||
-1 | As noted above in “Cash flow hedges used for asset and liability management”, interest rate caps are used to hedge interest rate risk associated with the Subordinated Note due 2014 ($100.0 million). With the repayment of the Subordinated Note in the second quarter of 2011, this cap is no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012. | ||||||||||||||||||||||||
“To-Be-Announced” Securities | |||||||||||||||||||||||||
The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the “To-Be-Announced” or TBA market. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Unrealized gains and losses on TBAs are recorded in the condensed consolidated balance sheets in receivable from brokers and clearing organizations and payable to brokers and clearing organizations, respectively, and in the condensed consolidated statement of operations as principal transactions revenue. | |||||||||||||||||||||||||
The following table summarizes the notional and fair values of the TBAs as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Sale of TBAs (1) | $ | 381,124 | $ | 3,403 | $ | 449,065 | $ | 3,188 | |||||||||||||||||
Purchase of TBAs | $ | 42,709 | $ | 536 | $ | 117,573 | $ | 175 | |||||||||||||||||
Funding Commitments | 266,273 | 304,390 | |||||||||||||||||||||||
$ | 308,982 | $ | 421,963 | ||||||||||||||||||||||
-1 | TBAs are used to offset exposures related to commitments to provide funding for Federal Housing Administration (“FHA”) loans at OMHHF. At September 30, 2013, the loan commitments balance was $266.3 million ($304.4 million at December 31, 2012). In addition, at September 30, 2013, OMHHF had a loan receivable balance (included in other assets in the condensed consolidated balance sheet) of $65.8 million ($22.9 million at December 31, 2012) which relates to prior loan commitments that have been funded but have not yet been securitized. The “when issued” securitizations of these loans have been sold to market counterparties. | ||||||||||||||||||||||||
Collateralized Transactions | |||||||||||||||||||||||||
The Company enters into collateralized borrowing and lending transactions in order to meet customers’ needs and earn residual interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. government and agency, asset-backed, corporate debt, equity, and non-U.S. government and agency securities. | |||||||||||||||||||||||||
The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates but not exceeding the broker call rate. At September 30, 2013, bank call loans were $94.8 million ($128.3 million at December 31, 2012). | |||||||||||||||||||||||||
At September 30, 2013, the Company had collateralized loans, collateralized by firm and customer securities with market values of approximately $132.5 million and $225.1 million, respectively, with commercial banks. At September 30, 2013, the Company had approximately $1.3 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $206.0 million under securities loan agreements. | |||||||||||||||||||||||||
At September 30, 2013, the Company had deposited $335.2 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers. | |||||||||||||||||||||||||
At September 30, 2013, the Company had no outstanding letters of credit. | |||||||||||||||||||||||||
The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance the Company’s inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving government and agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest. Repurchase and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase and reverse repurchase agreements exist in “book entry” form and certain other requirements are met. | |||||||||||||||||||||||||
The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Assets | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Received | ||||||||||||||||||||||
Assets | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Reverse repurchase agreements | $ | 2,568,939 | $ | 2,568,939 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Securities borrowed (1) | 299,037 | — | 299,037 | (299,037 | ) | — | — | ||||||||||||||||||
Total | $ | 2,867,976 | $ | 2,568,939 | $ | 299,037 | $ | (299,037 | ) | $ | — | $ | — | ||||||||||||
-1 | Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Liabilities | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Pledged | ||||||||||||||||||||||
Liabilities | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Repurchase agreements | $ | 3,199,792 | $ | 2,568,939 | $ | 630,853 | $ | (630,853 | ) | $ | — | $ | — | ||||||||||||
Securities loaned (2) | 251,751 | — | 251,751 | (251,751 | ) | — | — | ||||||||||||||||||
Total | $ | 3,451,543 | $ | 2,568,939 | $ | 882,604 | $ | (882,604 | ) | $ | — | $ | — | ||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Assets | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Received | ||||||||||||||||||||||
Assets | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Reverse repurchase agreements | $ | 1,160,239 | $ | 1,160,239 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Securities borrowed (1) | 365,642 | — | 365,642 | (365,642 | ) | — | — | ||||||||||||||||||
Total | $ | 1,525,881 | $ | 1,160,239 | $ | 365,642 | $ | (365,642 | ) | $ | — | $ | — | ||||||||||||
-1 | Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Liabilities | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Pledged | ||||||||||||||||||||||
Liabilities | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Repurchase agreements | $ | 1,552,630 | $ | 1,160,239 | $ | 392,391 | $ | (392,391 | ) | $ | — | $ | — | ||||||||||||
Securities loaned (2) | 190,387 | — | 190,387 | (190,387 | ) | — | — | ||||||||||||||||||
Total | $ | 1,743,017 | $ | 1,160,239 | $ | 582,778 | $ | (582,778 | ) | $ | — | $ | — | ||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Certain of the Company’s repurchase agreements and reverse repurchase agreements are carried at fair value as a result of the Company’s fair value option election. The Company elected the fair value option for those repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date or that are not accounted for as purchase and sale agreements (such as repo-to-maturity transactions described above). The Company has elected the fair value option for these instruments to more accurately reflect market and economic events in its earnings and to mitigate a potential imbalance in earnings caused by using different measurement attributes (i.e. fair value versus carrying value) for certain assets and liabilities. At September 30, 2013, the fair value of the reverse repurchase agreements and repurchase agreements was $nil and $nil, respectively. | |||||||||||||||||||||||||
The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). At September 30, 2013, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $289.7 million ($354.0 million at December 31, 2012) and $2.6 billion ($1.2 billion at December 31, 2012), respectively, of which the Company has sold and re-pledged approximately $34.8 million ($14.3 million at December 31, 2012) under securities loaned transactions and $2.6 billion under repurchase agreements ($1.2 billion at December 31, 2012). | |||||||||||||||||||||||||
The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $805.4 million, as presented on the face of the condensed consolidated balance sheet at September 30, 2013 ($570.0 million at December 31, 2012). The carrying value of securities owned by the Company that have been loaned or pledged to counterparties where those counterparties do not have the right to sell or re-pledge the collateral was $133.9 million at September 30, 2013 ($159.4 million at December 31, 2012). | |||||||||||||||||||||||||
The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate and the right to offset a counterparty’s rights and obligations. The Company also monitors the market value of collateral held and the market value of securities receivable from others. It is the Company’s policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices. | |||||||||||||||||||||||||
As of December 31, 2011, the interest in securities formerly held by one of the Company’s funds which utilized Lehman Brothers International (Europe) as a prime broker was transferred to an investment trust. On September 26, 2013, the first interim distribution in the amount of $9.5 million was received by the trust and distributed to its members. As of September 30, 2013, the fair value of the Company’s investment in the trust based on reserves not paid in the first distribution is $274,000. The remaining investment is being carried in other assets on the condensed consolidated balance sheet. | |||||||||||||||||||||||||
Credit Concentrations | |||||||||||||||||||||||||
Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers and clearing organizations as of September 30, 2013 are receivables from four major U.S. broker-dealers totaling approximately $204.9 million. | |||||||||||||||||||||||||
Warehouse Facilities | |||||||||||||||||||||||||
Through OPY Credit Corp., the Company utilized a warehouse facility provided by Canadian Imperial Bank of Commerce (“CIBC”) to extend financing commitments to third party borrowers identified by the Company. This warehouse arrangement terminated on July 15, 2012. However, the Company will remain contingently liable for some minimal expenses in relation to this facility related to commitments made by CIBC to borrowers introduced by the Company until such borrowings are repaid by the borrower or until 2016, whichever is the sooner to occur. All such owed amounts will continue to be reflected in the Company’s consolidated statement of operations as incurred. | |||||||||||||||||||||||||
The Company reached an agreement with RBS Citizens, NA (“Citizens”) that was announced in July 2012, whereby the Company, through OPY Credit Corp., will introduce lending opportunities to Citizens, which Citizens can elect to accept and in which the Company will participate in the fees earned from any related commitment by Citizens. The Company can also in certain circumstances assume a portion of Citizen’s syndication and lending risk under such loans, and if it does so it shall be obligated to secure such obligations via a cash deposit determined through risk-based formulas. Neither the Company nor Citizens is obligated to make any specific loan or to commit any minimum amount of lending capacity to the relationship. The agreement also calls for Citizens and the Company at their option to jointly participate in the arrangement of various loan syndications. At September 30, 2013, there were no loans in place. | |||||||||||||||||||||||||
The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on settlement date, generally one to three business days after trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has clearing/participating arrangements with the National Securities Clearing Corporation (“NSCC”), the Fixed Income Clearing Corporation (“FICC”), R.J. O’Brien & Associates (commodities transactions) and others. With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts at September 30, 2013 are with the FICC. In addition, the Company began clearing its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited through BNP Paribas Securities Services and Oppenheimer through BNP Securities Corp. The clearing corporations have the right to charge the Company for losses that result from a client’s failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. At September 30, 2013, the Company had recorded no liabilities with regard to this right. The Company’s policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business. | |||||||||||||||||||||||||
OMHHF, which is engaged in commercial mortgage origination and servicing, has obtained an uncommitted warehouse facility line through PNC Bank (“PNC”) under which OMHHF pledges Federal Housing Administration (“FHA”)—guaranteed mortgages for a period averaging 15 business days and PNC table funds the principal payment to the mortgagee. OMHHF repays PNC upon the securitization of the mortgage by the Government National Mortgage Association (“GNMA”) and the delivery of the security to the counter- party for payment pursuant to a contemporaneous sale on the date the mortgage is funded. At September 30, 2013, OMHHF had $49.1 million outstanding under the warehouse facility line at a variable interest rate of 1 month LIBOR plus a spread. Interest expense for the three and nine months ended September 30, 2013 was $183,000 and $616,000, respectively ($305,000 and $705,000, respectively, for the three and nine months ended September 30, 2012). | |||||||||||||||||||||||||
As discussed above, the Company enters into TBA transactions to offset exposures related to commitments to provide funding for FHA loans at OMHHF. In the normal course of business, the Company may be exposed to the risk that counterparties to these TBAs are unable to fulfill their contractual obligations. | |||||||||||||||||||||||||
Variable Interest Entities (“VIEs”) | |||||||||||||||||||||||||
The Company’s policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company reviews factors, including the rights of the equity holders and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the investee is a VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The consolidation analysis is generally performed qualitatively. This analysis, which requires judgment, is performed at each reporting date. Accounting Standards Update (“ASU”) No. 2010-10, “Amendments for Certain Investment Funds,” defers the application of the revised consolidation rules for a reporting entity’s interest in an entity if certain conditions are met. An entity that qualifies for the deferral will continue to be assessed for consolidation under the overall guidance on VIEs, before its amendment, and other applicable consolidation guidance. Generally, the Company would consolidate those entities when it absorbs a majority of the expected losses or a majority of the expected residual returns, or both, of the entities. | |||||||||||||||||||||||||
For entities that the Company has concluded are not VIEs, the Company then evaluates whether the fund is a partnership or similar entity. If the fund is a partnership or similar entity, the Company evaluates the fund under the partnership consolidation guidance. Pursuant to that guidance, the Company consolidates funds in which it is the general partner and/or manages through a contract, unless presumption of control by the Company can be overcome. This presumption is overcome only when unrelated investors in the fund have the substantive ability to liquidate the fund or otherwise remove the Company as the general partner without cause, based on a simple majority vote of unaffiliated investors, or have other substantive participating rights. If the presumption of control can be overcome, the Company accounts for its interest in the fund pursuant to the equity method of accounting. | |||||||||||||||||||||||||
A subsidiary of the Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing investment alternatives to both its institutional and qualified retail clients. The Company holds variable interests in these funds as a result of its right to receive management and incentive fees. The Company’s investment in and additional capital commitments to these hedge funds and private equity funds are also considered variable interests. The Company’s additional capital commitments are subject to call at a later date and are limited in amount. | |||||||||||||||||||||||||
The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of the total general and limited partner interests held in these funds by all parties. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries’ general partnership interests, additional capital commitments, and management fees receivable represent its maximum exposure to loss. The subsidiaries’ general partnership interests and management fees receivable are included in other assets on the condensed consolidated balance sheet. | |||||||||||||||||||||||||
The following tables set forth the total VIE assets, the carrying value of the subsidiaries’ variable interests, and the Company’s maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Exposure | |||||||||||||||||||||||||
Carrying Value of the | to Loss in | ||||||||||||||||||||||||
Total | Company’s Variable Interest | Capital | Non-consolidated | ||||||||||||||||||||||
VIE Assets (1) | Assets (2) | Liabilities | Commitments | VIEs | |||||||||||||||||||||
Hedge funds | $ | 2,064,368 | $ | 284 | $ | — | $ | — | $ | 284 | |||||||||||||||
Private equity funds | 108,463 | 32 | — | 7 | 39 | ||||||||||||||||||||
Total | $ | 2,172,831 | $ | 316 | $ | — | $ | 7 | $ | 323 | |||||||||||||||
-1 | Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs. | ||||||||||||||||||||||||
-2 | Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Exposure | |||||||||||||||||||||||||
Carrying Value of the | to Loss in | ||||||||||||||||||||||||
Total | Company’s Variable Interest | Capital | Non-consolidated | ||||||||||||||||||||||
VIE Assets (1) | Assets (2) | Liabilities | Commitments | VIEs | |||||||||||||||||||||
Hedge funds | $ | 1,868,178 | $ | 372 | $ | — | $ | — | $ | 372 | |||||||||||||||
Private equity funds | 171,169 | 32 | — | 8 | 40 | ||||||||||||||||||||
Total | $ | 2,039,347 | $ | 404 | $ | — | $ | 8 | $ | 412 | |||||||||||||||
-1 | Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs. | ||||||||||||||||||||||||
-2 | Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Commercial_Mortgage_Banking
Commercial Mortgage Banking | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Commercial Mortgage Banking | ' | ||||||||||||||||
6. Commercial mortgage banking | |||||||||||||||||
OMHHF is engaged in the business of originating and servicing Federal Housing Administration (“FHA”) insured multifamily and healthcare facility loans and securitizing these loans into Ginnie Mae (“GNMA”) mortgage backed securities. OMHHF also offers mortgage services to developers of commercial properties including apartments, elderly housing and nursing homes that satisfy FHA criteria. OMHHF maintains a mortgage servicing portfolio for which it provides a full array of services, including the collection of mortgage payments from mortgagors which are passed on to the mortgage holders, construction loan management and asset management. | |||||||||||||||||
The Company owns an 83.68% controlling interest in OMHHF. The 16.32% non-controlling interest belongs to one related third party who is the President and Chief Executive Officer of OMHHF. | |||||||||||||||||
Loan Origination Fees | |||||||||||||||||
OMHHF receives origination fees and incurs other direct origination costs when it originates mortgage loans. Due to the nature of its business and pre-selling loans to third parties, OMHHF recognizes origination fees and other direct origination costs at the time of the origination. | |||||||||||||||||
In accordance with U.S. Department of Housing and Urban Development (“HUD”) guidelines, OMHHF will, with approval and for certain loan programs, apply the GNMA trade premium toward the payment of prepayment costs that customers will incur on their prior mortgage. These costs are netted with revenues from GNMA trade premiums that are otherwise earned from these loan refinancings or modifications. Prepayment costs recorded as contra-revenue against GNMA premium were $2.8 million and $13.5 million for the three and nine months ended September 30, 2013, respectively ($4.3 million and $5.9 million for the three and nine months ended September 30, 2012, respectively). | |||||||||||||||||
Funding Commitments | |||||||||||||||||
OMHHF provides its clients with commitments to fund FHA-insured permanent or constructions loans. Upon providing these commitments to fund, OMHHF enters into TBA transactions directly or indirectly through its affiliate, Oppenheimer, with counterparties to offset its exposures related to these funding commitments. See Note 5, Financial Instruments, for more information. | |||||||||||||||||
Mortgage Receivables | |||||||||||||||||
OMHHF advances funds from its own cash reserves in addition to obtaining financing through warehouse facilities in order to fund initial loan closing and subsequent construction loan draws. Prior to the GNMA securitization of a loan, a loan receivable is recorded in other assets. To the extent funds were advanced from its own cash reserves, the cash balance is reduced in an equal amount. To the extent funds were financed through the warehouse facility, an equal and offsetting liability for the warehouse facility payable is recorded in other liabilities on the condensed consolidated balance sheet. | |||||||||||||||||
Escrows Held in Trust | |||||||||||||||||
Custodial escrow accounts relating to loans serviced by OMHHF totaled $272.4 million at September 30, 2013 ($242.7 million at December 31, 2012). These amounts are not included on the condensed consolidated statements of financial condition as such amounts are not OMHHF’s assets. Certain cash deposits at financial institutions exceeded the FDIC insured limits. The combined uninsured balance with relation to escrow accounts at September 30, 2013 was approximately $176.8 million. OMHHF places these deposits with major financial institutions where they believe the risk is minimal and that meet or exceed GNMA required credit ratings. | |||||||||||||||||
Mortgage Servicing Rights (“MSRs”) | |||||||||||||||||
OMHHF purchases commitments or originates mortgage loans that are sold and securitized into GNMA mortgage backed securities. OMHHF retains the servicing responsibilities for the loans securitized and recognizes either a MSR asset or a MSR liability for that servicing contract. OMHHF receives monthly servicing fees equal to a percentage of the outstanding principal balance of the loans being serviced. | |||||||||||||||||
OMHHF estimates the initial fair value of the servicing rights based on the present value of future net servicing income, adjusted for factors such as discount rate and prepayment. OMHHF uses the amortization method for subsequent measurement, subject to annual impairment. The fair value of the servicing rights on the loan portfolio was $38.5 million and $33.0 million at September 30, 2013 and December 31, 2012, respectively (carrying value of $28.1 million and $27.0 million at September 30, 2013 and December 31, 2012, respectively). The following tables summarize the changes in carrying value of MSRs for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Balance, as of December 31, 2012 | $ | 26,983 | |||||||||||||||
Originations (1) | 5,668 | ||||||||||||||||
Purchases | 1,108 | ||||||||||||||||
Disposals (1) | (4,518 | ) | |||||||||||||||
Amortization expense | (1,120 | ) | |||||||||||||||
Balance, as of September 30, 2013 | $ | 28,121 | |||||||||||||||
-1 | Includes refinancing. | ||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Balance, as of December 31, 2011 | $ | 22,795 | |||||||||||||||
Originations (1) | 4,337 | ||||||||||||||||
Purchases | 2,582 | ||||||||||||||||
Disposals (1) | (450 | ) | |||||||||||||||
Amortization expense | (2,337 | ) | |||||||||||||||
Balance, as of September 30, 2012 | $ | 26,927 | |||||||||||||||
-1 | Includes refinancing. | ||||||||||||||||
Servicing rights are amortized using the straight-line method over 10 years. Amortization expense for the next five years is as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
2013 | $ | 3,538 | |||||||||||||||
2014 | 3,531 | ||||||||||||||||
2015 | 3,531 | ||||||||||||||||
2016 | 3,498 | ||||||||||||||||
2017 | 3,435 | ||||||||||||||||
Thereafter | 10,588 | ||||||||||||||||
$ | 28,121 | ||||||||||||||||
The Company receives fees during the course of servicing the mortgage loans. The amount of these fees for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Servicing fees | $ | 1,287 | $ | 1,080 | $ | 3,739 | $ | 3,016 | |||||||||
Late fees | 19 | 25 | 94 | 25 | |||||||||||||
Ancillary fees | 170 | 128 | 291 | 320 | |||||||||||||
Total MSR fees | $ | 1,476 | $ | 1,233 | $ | 4,124 | $ | 3,361 | |||||||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Long-Term Debt | ' | ||||||||||||
7. Long-term debt | |||||||||||||
(Expressed in thousands) | |||||||||||||
Issued | Maturity | September 30, | December 31, | ||||||||||
Date | 2013 | 2012 | |||||||||||
Senior Secured Notes | 4/15/18 | $ | 195,000 | $ | 195,000 | ||||||||
On April 12, 2011, the Company completed the private placement of $200.0 million in aggregate principal amount of 8.75% Senior Secured Notes due April 15, 2018 (the “Notes”) at par. The interest on the Notes is payable semi-annually on April 15th and October 15th. Proceeds from the private placement were used to retire the Senior Secured Credit Note due 2013 ($22.4 million) and the Subordinated Note due 2014 ($100.0 million) and for other general corporate purposes. The private placement resulted in the fixing of the interest rate over the term of the Notes compared to the variable rate debt that was retired and an extension of the debt maturity dates as described above. The cost to issue the Notes was approximately $4.6 million which was capitalized in the second quarter of 2011 and is amortized over the period of the Notes. | |||||||||||||
The indenture for the Notes contains covenants which place restrictions on the incurrence of indebtedness, the payment of dividends, sale of assets, mergers and acquisitions and the granting of liens. The Notes provide for events of default including nonpayment, misrepresentation, breach of covenants and bankruptcy. The Company’s obligations under the Notes are guaranteed, subject to certain limitations, by the same subsidiaries that guaranteed the obligations under the Senior Secured Credit Note and the Subordinated Note which were retired. These guarantees may be shared, on a senior basis, under certain circumstances, with newly incurred debt outstanding in the future. At September 30, 2013, the Company was in compliance with all of its covenants. | |||||||||||||
On July 12, 2011, the Company’s Registration Statement on Form S-4 filed to register the exchange of the Notes for fully registered Notes was declared effective by the SEC. The Exchange Offer was completed in its entirety on August 9, 2011. | |||||||||||||
In November 2011, the Company repurchased $5.0 million of its Notes at a cost of $4.7 million resulting in the recording of a gain of $300,000 during the fourth quarter of 2011. The Company continued to hold these Notes at September 30, 2013. | |||||||||||||
On April 4, 2012, the Company’s Registration Statement on Form S-3 filed to enable the Company to act as a market maker in connection with the Notes was declared effective by the SEC. | |||||||||||||
Interest expense for the three and nine months ended September 30, 2013 on the Notes was $4.3 million and $12.8 million, respectively ($4.3 million and $12.8 million, respectively, for the three and nine months ended September 30, 2012). | |||||||||||||
At September 30, 2013, the Notes were trading at $106.94 per $100. |
Share_Capital
Share Capital | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Share Capital | ' | ||||||||||||||||
8. Share capital | |||||||||||||||||
The Company’s authorized share capital consists of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A non-voting common stock, par value $0.001 per share; and (c) 99,680 shares of Class B voting common stock, par value $0.001 per share. No Preferred Stock has been issued. 99,680 shares of Class B Stock have been issued and are outstanding. | |||||||||||||||||
The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting. | |||||||||||||||||
The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Class A Stock outstanding, beginning of period | 13,496,783 | 13,489,162 | 13,508,318 | 13,572,265 | |||||||||||||
Issued pursuant to shared-based compensation plans | 65,227 | 40,850 | 65,227 | 57,647 | |||||||||||||
Repurchased and cancelled pursuant to the stock buy-back | (119,251 | ) | (15,000 | ) | (130,786 | ) | (114,900 | ) | |||||||||
Class A Stock outstanding, end of period | 13,442,759 | 13,515,012 | 13,442,759 | 13,515,012 | |||||||||||||
Stock buy-back | |||||||||||||||||
On October 7, 2011, the Company announced its intention to purchase up to 675,000 shares of its Class A Stock in compliance with the rules and regulations of the New York Stock Exchange and the SEC and the terms of its senior secured debt. The 675,000 shares represented approximately 5% of its then 13,572,265 issued and outstanding shares of Class A Stock. Any such purchases will be made by the Company in the open market at the prevailing open market price using cash on hand. All shares purchased will be cancelled. The repurchase program is expected to continue indefinitely. The repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A Stock. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. | |||||||||||||||||
In the nine months ended September 30, 2013, the Company purchased and cancelled 130,786 shares of Class A Stock for total consideration of $2.3 million ($17.69 per share). |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
9. Contingencies | |
Many aspects of the Company’s business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions, and other litigation, creating substantial exposure. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company’s business which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. The investigations include, among other things, inquiries from the SEC, the Financial Industry Regulatory Authority (“FINRA”) and various state regulators. The Company is named as a respondent in a number of arbitrations by its current or former clients as well as lawsuits related to its sale of ARS. | |
The Company accrues for estimated loss contingencies related to legal and regulatory matters when available information indicates that it is probable a liability had been incurred at the date of the condensed consolidated financial statements and the Company can reasonably estimate the amount of that loss. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss or possible additional losses or range of additional losses. | |
For certain legal and regulatory proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial, indeterminate or special damages. Numerous issues may need to be reviewed, analyzed or resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before a loss or range of loss or additional loss can be reasonably estimated for any proceeding. Even after lengthy review and analysis, the Company, in many legal and regulatory proceedings, may not be able to reasonably estimate possible losses or range of loss. | |
For certain other legal and regulatory proceedings, the Company can estimate possible losses, or, range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually or in the aggregate, will have a material adverse effect on the Company’s condensed consolidated financial statements as a whole. | |
For legal proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of $0 to approximately $24 million. This estimated aggregate range is based upon currently available information for those legal proceedings in which the Company is involved, where an estimate for such losses can be made. For certain cases, the Company does not believe that an estimate can currently be made. The foregoing estimate is based on various factors, including the varying stages of the proceedings (including the fact that many are currently in preliminary stages), the numerous yet-unresolved issues in many of the proceedings and the attendant uncertainty of the various potential outcomes of such proceedings. Accordingly, the Company’s estimate will change from time to time, and actual losses may be more than the current estimate. | |
On October 25, 2013, the Company executed a settlement agreement with the receiver appointed by a state district court in Oklahoma to oversee a liquidation proceeding of Providence Property and Casualty Insurance Company in an action that was filed in March 2010. The Company agreed to a settlement amount of $10.0 million. The Company recovered insurance proceeds of $4.9 million reducing its net amount due under the settlement agreement to $5.1 million. In addition, the Company agreed to pay $500,000 in full and final settlement of any claims the receiver may have had in an action filed by the receiver in connection with an affiliated insurance company. Both of these settlement agreements are subject to court approval and are fully independent of each other. The Company was fully reserved for both of these contingencies as of September 30, 2013. The impact of these matters on litigation expenses during the third quarter of 2013 was $2.3 million which is included in other expenses on the condensed consolidated statement of operations. | |
Regulatory_Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Regulatory Requirements | ' |
10. Regulatory requirements | |
The Company’s U.S. broker dealer subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the “Rule”) promulgated under Securities Exchange Act of 1934, as amended (the “Exchange Act”). Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. At September 30, 2013, the net capital of Oppenheimer as calculated under the Rule was $159.0 million or 12.2% of Oppenheimer’s aggregate debit items. This was $132.8 million in excess of the minimum required net capital at that date. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $250,000 or 6-2/3% of aggregate indebtedness, as defined. At September 30, 2013, Freedom had net capital of $4.5 million, which was $4.2 million in excess of the $250,000 required to be maintained at that date. | |
At September 30, 2013, Oppenheimer and Freedom had $17.4 million and $18.3 million, respectively, in cash and U.S. Treasury securities segregated under Federal and other regulations. | |
At September 30, 2013, the regulatory capital of Oppenheimer Europe Ltd. was $5.3 million which was $1.9 million in excess of the $3.4 million required to be maintained at that date. Oppenheimer Europe Ltd. computes its regulatory capital pursuant to the Fixed Overhead Method prescribed by the Financial Conduct Authority of the United Kingdom. | |
At September 30, 2013, the regulatory capital of Oppenheimer Investments Asia Limited was $1.3 million, which was $905,000 in excess of the $387,000 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission in Hong Kong. | |
In accordance with the SEC’s No-Action Letter dated November 3, 1998, Oppenheimer has computed a reserve requirement for the proprietary accounts of introducing firms as of September 30, 2013. Oppenheimer had no deposit requirements as of September 30, 2013. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
11. Related party transactions | |
The Company does not make loans to its officers and directors except under normal commercial terms pursuant to client margin account agreements. These loans are fully collateralized by employee-owned securities. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
12. Segment information | |||||||||||||||||
The Company has determined its reportable segments based on the Company’s method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. | |||||||||||||||||
Due to the recent growth in the Company’s commercial loan origination and servicing business operated out of OMHHF, the Company has presented separately the results of this business in a reportable segment titled “Commercial Mortgage Banking.” This reportable segment engages in business activities in which it earns revenues and incurs expenses that are distinct from the Company’s other reportable segments, its operating results are reviewed by the Company’s Chief Executive Officer who makes decisions about resources to be allocated to this business, and separate financial information is available for the legal entity from which it operates. The Commercial Mortgage Banking reportable segment not only meets these qualitative criteria but, as a result of its recent growth, also meets one of the quantitative thresholds for segment reporting. Previously reported segment information has been revised to reflect this new reportable segment. | |||||||||||||||||
The Company’s reportable segments are: | |||||||||||||||||
Private Client—includes commission and a proportionate amount of fee income earned on client transactions, net interest earnings on client margin loans and cash balances, fees from money market funds, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment; | |||||||||||||||||
Asset Management—includes fees from investment management services of Oppenheimer Asset Management Inc. and Oppenheimer’s asset management divisions employing various programs to professionally manage client assets either in individual accounts or in funds, and direct expenses associated with this segment; | |||||||||||||||||
Capital Markets—includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company’s operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment; and | |||||||||||||||||
Commercial Mortgage Banking—includes loan origination and servicing fees from the Company’s subsidiary, OMHHF. The Company has added this business segment due to the significant growth and profitability of this line of business over the last several quarters. In prior periods, this business had been part of the Capital Markets business segment. | |||||||||||||||||
The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and include, for example, compensation and benefits, rent expense, information technology, legal and professional. | |||||||||||||||||
The table below presents information about the reported revenue and net income before taxes of the Company for the three and nine months ended September 30, 2013 and 2012. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue | |||||||||||||||||
Private client division * | $ | 144,316 | $ | 133,798 | $ | 430,963 | $ | 406,530 | |||||||||
Asset management * | 21,488 | 19,812 | 64,450 | 58,848 | |||||||||||||
Capital markets | 68,460 | 68,587 | 201,495 | 209,477 | |||||||||||||
Commercial mortgage banking | 9,314 | 8,738 | 26,857 | 27,726 | |||||||||||||
Corporate/Other | (202 | ) | 903 | 2,587 | 616 | ||||||||||||
Total | $ | 243,376 | $ | 231,838 | $ | 726,352 | $ | 703,197 | |||||||||
Income (loss) before income taxes | |||||||||||||||||
Private client division * | $ | 15,088 | $ | 11,825 | $ | 48,113 | $ | 39,557 | |||||||||
Asset management * | 6,387 | 4,129 | 20,332 | 13,225 | |||||||||||||
Capital markets | 4,301 | 3,474 | 8,806 | 4,479 | |||||||||||||
Commercial mortgage banking | 2,823 | 3,155 | 7,977 | 11,985 | |||||||||||||
Corporate/Other | (20,436 | ) | (17,325 | ) | (64,678 | ) | (62,638 | ) | |||||||||
Total | $ | 8,163 | $ | 5,258 | $ | 20,550 | $ | 6,608 | |||||||||
* | Asset management fees are allocated 22.5% to the Asset Management and 77.5% to the Private Client Divisions. | ||||||||||||||||
Revenue, classified by the major geographic areas in which it was earned for the three and nine months ended September 30, 2013 and 2012, was as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 231,777 | $ | 222,226 | $ | 693,251 | $ | 670,339 | |||||||||
Europe/Middle East | 9,210 | 7,475 | 26,930 | 26,155 | |||||||||||||
Asia | 1,309 | 332 | 2,843 | 633 | |||||||||||||
South America | 1,080 | 1,805 | 3,328 | 6,070 | |||||||||||||
Total | $ | 243,376 | $ | 231,838 | $ | 726,352 | $ | 703,197 | |||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
13. Subsequent events | |
On October 25, 2013, the Company announced a quarterly dividend in the amount of $0.11 per share, payable on November 22, 2013 to holders of Class A Stock and Class B Stock of record on November 8, 2013. |
Supplemental_Guarantor_Condens
Supplemental Guarantor Condensed Consolidated Financial Statements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Supplemental Guarantor Condensed Consolidated Financial Statements | ' | ||||||||||||||||||||
14. Supplemental guarantor condensed consolidated financial statements | |||||||||||||||||||||
The Company’s Notes (see Note 7 above) are jointly and severally and fully and unconditionally guaranteed on a senior basis by E.A. Viner International Co. and Viner Finance Inc. (together, the “Guarantors”), unless released as described below. Each of the Guarantors is 100% owned by the Company. The following condensed consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for purposes of this note only), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and elimination entries necessary to consolidate the Company. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidated presentation. | |||||||||||||||||||||
Each Guarantor will be automatically and unconditionally released and discharged upon: the sale, exchange or transfer of the capital stock of a Guarantor and the Guarantor ceases to be a direct or indirect subsidiary of the Company if such sale does not constitute an asset sale under the indenture for the Notes or does not constitute an asset sale effected in compliance with the asset sale and merger covenants of the debenture for the Notes; a Guarantor being dissolved or liquidated; a Guarantor being designated unrestricted in compliance with the applicable provisions of the Notes; or the exercise by the Company of its legal defeasance option or covenant defeasance option or the discharge of the Company’s obligations under the indenture for the Notes in accordance with the terms of such indenture. | |||||||||||||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 232 | $ | 32,441 | $ | 72,684 | $ | — | $ | 105,357 | |||||||||||
Cash and securities segregated for regulatory and other purposes | — | — | 36,569 | — | 36,569 | ||||||||||||||||
Deposits with clearing organizations | — | — | 25,054 | — | 25,054 | ||||||||||||||||
Receivable from brokers and clearing organizations | — | — | 395,507 | — | 395,507 | ||||||||||||||||
Receivable from customers, net of allowance for credit losses of $2,434 | — | — | 873,433 | — | 873,433 | ||||||||||||||||
Income tax receivable | 18,315 | 26,657 | (816 | ) | (38,004 | ) | 6,152 | ||||||||||||||
Securities owned, including amounts pledged of $805,399, at fair value | — | 2,137 | 1,080,332 | — | 1,082,469 | ||||||||||||||||
Subordinated loan receivable | — | 112,558 | — | (112,558 | ) | — | |||||||||||||||
Notes receivable, net | — | — | 43,113 | — | 43,113 | ||||||||||||||||
Office facilities, net | — | 21,504 | 12,036 | — | 33,540 | ||||||||||||||||
Deferred tax assets, net | 470 | 309 | 36,412 | (34,713 | ) | 2,478 | |||||||||||||||
Intangible assets, net | — | — | 31,700 | — | 31,700 | ||||||||||||||||
Goodwill | — | — | 137,889 | — | 137,889 | ||||||||||||||||
Other | 3,010 | 26,833 | 193,544 | — | 223,387 | ||||||||||||||||
Investment in subsidiaries | 529,585 | 892,592 | (185,179 | ) | (1,236,998 | ) | — | ||||||||||||||
Intercompany receivables | 164,214 | (73,818 | ) | (24,522 | ) | (65,874 | ) | — | |||||||||||||
$ | 715,826 | $ | 1,041,213 | $ | 2,727,756 | $ | (1,488,147 | ) | $ | 2,996,648 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Drafts payable | $ | — | $ | — | $ | 36,165 | $ | — | $ | 36,165 | |||||||||||
Bank call loans | — | — | 94,800 | — | 94,800 | ||||||||||||||||
Payable to brokers and clearing organizations | — | — | 265,943 | — | 265,943 | ||||||||||||||||
Payable to customers | — | — | 690,911 | — | 690,911 | ||||||||||||||||
Securities sold under agreements to repurchase | — | — | 630,853 | — | 630,853 | ||||||||||||||||
Securities sold, but not yet purchased, at fair value | — | — | 243,065 | — | 243,065 | ||||||||||||||||
Accrued compensation | — | — | 133,197 | — | 133,197 | ||||||||||||||||
Accounts payable and other liabilities | 8,093 | 57,926 | 125,512 | (90 | ) | 191,441 | |||||||||||||||
Income tax payable | 2,440 | 22,189 | 13,376 | (38,005 | ) | — | |||||||||||||||
Senior secured notes | 195,000 | — | — | — | 195,000 | ||||||||||||||||
Subordinated indebtedness | — | — | 112,558 | (112,558 | ) | — | |||||||||||||||
Deferred tax liabilities, net | — | — | 34,713 | (34,713 | ) | — | |||||||||||||||
Intercompany payables | — | 65,875 | — | (65,875 | ) | — | |||||||||||||||
205,533 | 145,990 | 2,381,093 | (251,241 | ) | 2,481,375 | ||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||
Stockholders’ equity attributable to | 510,293 | 895,223 | 341,683 | (1,236,906 | ) | 510,293 | |||||||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Noncontrolling interest | — | — | 4,980 | — | 4,980 | ||||||||||||||||
510,293 | 895,223 | 346,663 | (1,236,906 | ) | 515,273 | ||||||||||||||||
$ | 715,826 | $ | 1,041,213 | $ | 2,727,756 | $ | (1,488,147 | ) | $ | 2,996,648 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF DECEMBER 31, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 40,658 | $ | 94,673 | $ | — | $ | 135,366 | |||||||||||
Cash and securities segregated for regulatory and other purposes | — | — | 33,000 | — | 33,000 | ||||||||||||||||
Deposits with clearing organizations | — | — | 25,954 | — | 25,954 | ||||||||||||||||
Receivable from brokers and clearing organizations | — | — | 479,699 | — | 479,699 | ||||||||||||||||
Receivable from customers, net of allowance for credit losses of $2,256 | — | — | 817,941 | — | 817,941 | ||||||||||||||||
Income tax receivable | 13,207 | 30,568 | (450 | ) | (42,874 | ) | 451 | ||||||||||||||
Securities owned, including amounts pledged of $569,995, at fair value | — | 2,459 | 757,283 | — | 759,742 | ||||||||||||||||
Subordinated loan receivable | — | 112,558 | — | (112,558 | ) | — | |||||||||||||||
Notes receivable, net | — | — | 47,324 | — | 47,324 | ||||||||||||||||
Office facilities, net | — | 15,547 | 12,785 | — | 28,332 | ||||||||||||||||
Deferred tax assets, net | (143 | ) | 309 | 52,350 | (36,176 | ) | 16,340 | ||||||||||||||
Intangible assets, net | — | — | 31,700 | — | 31,700 | ||||||||||||||||
Goodwill | — | — | 137,889 | — | 137,889 | ||||||||||||||||
Other | 3,418 | 1,437 | 159,427 | — | 164,282 | ||||||||||||||||
Investment in subsidiaries | 506,679 | 880,609 | (195,045 | ) | (1,192,243 | ) | — | ||||||||||||||
Intercompany receivables | 178,743 | (114,449 | ) | (27,686 | ) | (36,608 | ) | — | |||||||||||||
$ | 701,939 | $ | 969,696 | $ | 2,426,844 | $ | (1,420,459 | ) | $ | 2,678,020 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Drafts payable | $ | — | $ | — | $ | 56,586 | $ | — | $ | 56,586 | |||||||||||
Bank call loans | — | — | 128,300 | — | 128,300 | ||||||||||||||||
Payable to brokers and clearing organizations | — | — | 204,218 | — | 204,218 | ||||||||||||||||
Payable to customers | — | — | 692,378 | — | 692,378 | ||||||||||||||||
Securities sold under agreements to repurchase | — | — | 392,391 | — | 392,391 | ||||||||||||||||
Securities sold, but not yet purchased, at fair value | — | — | 173,450 | — | 173,450 | ||||||||||||||||
Accrued compensation | — | — | 150,434 | — | 150,434 | ||||||||||||||||
Accounts payable and other liabilities | 3,759 | 43,350 | 133,646 | (493 | ) | 180,262 | |||||||||||||||
Income tax payable | 2,440 | 22,189 | 18,687 | (43,316 | ) | — | |||||||||||||||
Senior secured notes | 195,000 | — | — | — | 195,000 | ||||||||||||||||
Subordinated indebtedness | — | — | 112,558 | (112,558 | ) | — | |||||||||||||||
Deferred tax liabilities, net | — | (943 | ) | 36,677 | (35,734 | ) | — | ||||||||||||||
Intercompany payables | — | 36,605 | — | (36,605 | ) | — | |||||||||||||||
201,199 | 101,201 | 2,099,325 | (228,706 | ) | 2,173,019 | ||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||
Stockholders’ equity attributable to | 500,740 | 868,495 | 323,258 | (1,191,753 | ) | 500,740 | |||||||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Noncontrolling interest | — | — | 4,261 | — | 4,261 | ||||||||||||||||
500,740 | 868,495 | 327,519 | (1,191,753 | ) | 505,001 | ||||||||||||||||
$ | 701,939 | $ | 969,696 | $ | 2,426,844 | $ | (1,420,459 | ) | $ | 2,678,020 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 120,252 | $ | — | $ | 120,252 | |||||||||||
Principal transactions, net | — | 26 | 10,321 | — | 10,347 | ||||||||||||||||
Interest | — | 2,777 | 14,805 | (3,143 | ) | 14,439 | |||||||||||||||
Investment banking | — | — | 21,362 | — | 21,362 | ||||||||||||||||
Advisory fees | — | — | 60,650 | (533 | ) | 60,117 | |||||||||||||||
Other | — | 42 | 16,859 | (42 | ) | 16,859 | |||||||||||||||
— | 2,845 | 244,249 | (3,718 | ) | 243,376 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 207 | — | 160,874 | — | 161,081 | ||||||||||||||||
Clearing and exchange fees | — | — | 6,099 | — | 6,099 | ||||||||||||||||
Communications and technology | 23 | — | 16,976 | — | 16,999 | ||||||||||||||||
Occupancy and equipment costs | — | — | 16,447 | (42 | ) | 16,405 | |||||||||||||||
Interest | 4,375 | — | 4,932 | (3,143 | ) | 6,164 | |||||||||||||||
Other | 285 | 4 | 28,709 | (533 | ) | 28,465 | |||||||||||||||
4,890 | 4 | 234,037 | (3,718 | ) | 235,213 | ||||||||||||||||
Income (loss) before income taxes | (4,890 | ) | 2,841 | 10,212 | — | 8,163 | |||||||||||||||
Income tax provision (benefit) | (1,792 | ) | 1,808 | 2,639 | — | 2,655 | |||||||||||||||
Net income (loss) for the period | (3,098 | ) | 1,033 | 7,573 | — | 5,508 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 271 | — | 271 | ||||||||||||||||
Equity in subsidiaries | 8,335 | — | — | (8,335 | ) | — | |||||||||||||||
Net income attributable to | $ | 5,237 | $ | 1,033 | $ | 7,302 | $ | (8,335 | ) | $ | 5,237 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income | $ | — | $ | — | $ | 656 | $ | — | $ | 656 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 364,272 | $ | — | $ | 364,272 | |||||||||||
Principal transactions, net | — | 38 | 33,558 | — | 33,596 | ||||||||||||||||
Interest | 5 | 8,370 | 40,119 | (8,578 | ) | 39,916 | |||||||||||||||
Investment banking | — | — | 62,377 | — | 62,377 | ||||||||||||||||
Advisory fees | — | — | 179,137 | (1,720 | ) | 177,417 | |||||||||||||||
Other | — | 126 | 48,774 | (126 | ) | 48,774 | |||||||||||||||
5 | 8,534 | 728,237 | (10,424 | ) | 726,352 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 902 | — | 479,394 | — | 480,296 | ||||||||||||||||
Clearing and exchange fees | — | — | 18,434 | — | 18,434 | ||||||||||||||||
Communications and technology | 81 | — | 48,800 | — | 48,881 | ||||||||||||||||
Occupancy and equipment costs | — | — | 51,237 | (126 | ) | 51,111 | |||||||||||||||
Interest | 13,125 | — | 15,622 | (8,578 | ) | 20,169 | |||||||||||||||
Other | 1,045 | 23 | 87,563 | (1,720 | ) | 86,911 | |||||||||||||||
15,153 | 23 | 701,050 | (10,424 | ) | 705,802 | ||||||||||||||||
Income (loss) before income taxes | (15,148 | ) | 8,511 | 27,187 | — | 20,550 | |||||||||||||||
Income tax provision (benefit) | (5,723 | ) | 3,702 | 10,104 | — | 8,083 | |||||||||||||||
Net income (loss) for the period | (9,425 | ) | 4,809 | 17,083 | — | 12,467 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 719 | — | 719 | ||||||||||||||||
Equity in subsidiaries | 21,173 | — | — | (21,173 | ) | — | |||||||||||||||
Net income attributable to | $ | 11,748 | $ | 4,809 | $ | 16,364 | $ | (21,173 | ) | $ | 11,748 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income (loss) | $ | (3 | ) | $ | — | $ | 1,159 | $ | — | $ | 1,156 | ||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 113,424 | $ | — | $ | 113,424 | |||||||||||
Principal transactions, net | — | 438 | 13,934 | — | 14,372 | ||||||||||||||||
Interest | — | 3,049 | 14,554 | (2,780 | ) | 14,823 | |||||||||||||||
Investment banking | — | — | 21,589 | — | 21,589 | ||||||||||||||||
Advisory fees | — | — | 53,645 | (630 | ) | 53,015 | |||||||||||||||
Other | — | 42 | 14,617 | (44 | ) | 14,615 | |||||||||||||||
— | 3,529 | 231,763 | (3,454 | ) | 231,838 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 123 | — | 151,846 | — | 151,969 | ||||||||||||||||
Clearing and exchange fees | — | — | 6,026 | — | 6,026 | ||||||||||||||||
Communications and technology | 13 | — | 15,867 | — | 15,880 | ||||||||||||||||
Occupancy and equipment costs | — | — | 17,568 | (42 | ) | 17,526 | |||||||||||||||
Interest | 4,375 | (20 | ) | 7,268 | (2,781 | ) | 8,842 | ||||||||||||||
Other | 367 | 18 | 26,583 | (631 | ) | 26,337 | |||||||||||||||
4,878 | (2 | ) | 225,158 | (3,454 | ) | 226,580 | |||||||||||||||
Income (loss) before income taxes | (4,878 | ) | 3,531 | 6,605 | — | 5,258 | |||||||||||||||
Income tax provision (benefit) | (1,720 | ) | 1,277 | 2,677 | — | 2,234 | |||||||||||||||
Net income (loss) for the period | (3,158 | ) | 2,254 | 3,928 | — | 3,024 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 702 | — | 702 | ||||||||||||||||
Equity in subsidiaries | 5,480 | — | — | (5,480 | ) | — | |||||||||||||||
Net income attributable to | $ | 2,322 | $ | 2,254 | $ | 3,226 | $ | (5,480 | ) | $ | 2,322 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income | $ | — | $ | — | $ | 180 | $ | — | $ | 180 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 351,487 | $ | — | $ | 351,487 | |||||||||||
Principal transactions, net | — | 728 | 39,659 | — | 40,387 | ||||||||||||||||
Interest | — | 9,203 | 42,370 | (9,111 | ) | 42,462 | |||||||||||||||
Investment banking | — | — | 66,647 | — | 66,647 | ||||||||||||||||
Advisory fees | — | — | 158,683 | (1,887 | ) | 156,796 | |||||||||||||||
Other | — | 126 | 45,420 | (128 | ) | 45,418 | |||||||||||||||
— | 10,057 | 704,266 | (11,126 | ) | 703,197 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 335 | — | 461,181 | — | 461,516 | ||||||||||||||||
Clearing and exchange fees | — | — | 18,046 | — | 18,046 | ||||||||||||||||
Communications and technology | 57 | — | 47,289 | — | 47,346 | ||||||||||||||||
Occupancy and equipment costs | — | — | 59,405 | (126 | ) | 59,279 | |||||||||||||||
Interest | 13,125 | — | 21,851 | (9,112 | ) | 25,864 | |||||||||||||||
Other | 1,139 | 55 | 85,232 | (1,888 | ) | 84,538 | |||||||||||||||
14,656 | 55 | 693,004 | (11,126 | ) | 696,589 | ||||||||||||||||
Income (loss) before income taxes | (14,656 | ) | 10,002 | 11,262 | — | 6,608 | |||||||||||||||
Income tax provision (benefit) | (5,630 | ) | 5,563 | 4,159 | — | 4,092 | |||||||||||||||
Net income (loss) for the period | (9,026 | ) | 4,439 | 7,103 | — | 2,516 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 2,429 | — | 2,429 | ||||||||||||||||
Equity in subsidiaries | 9,113 | — | — | (9,113 | ) | — | |||||||||||||||
Net income attributable to | $ | 87 | $ | 4,439 | $ | 4,674 | $ | (9,113 | ) | $ | 87 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income (loss) | $ | 1 | $ | — | $ | (475 | ) | $ | — | $ | (474 | ) | |||||||||
OPPNEHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows from operations: | |||||||||||||||||||||
Net income (loss) for the period | $ | (9,425 | ) | $ | 4,809 | $ | 17,083 | $ | — | $ | 12,467 | ||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||||||
Depreciation and amortization | — | — | 7,434 | — | 7,434 | ||||||||||||||||
Deferred income tax | — | — | 13,862 | — | 13,862 | ||||||||||||||||
Amortization of notes receivable | — | — | 14,086 | — | 14,086 | ||||||||||||||||
Amortization of debt issuance costs | 479 | — | — | — | 479 | ||||||||||||||||
Provision for credit losses | — | — | 178 | — | 178 | ||||||||||||||||
Share-based compensation expense | — | — | 3,966 | — | 3,966 | ||||||||||||||||
Changes in operating assets and liabilities | 15,958 | (13,026 | ) | (32,456 | ) | — | (29,524 | ) | |||||||||||||
Cash provided by (used in) continuing operations | 7,012 | (8,217 | ) | 24,153 | — | 22,948 | |||||||||||||||
Cash flows from Investment activities | |||||||||||||||||||||
Purchase of office facilities | — | — | (12,642 | ) | — | (12,642 | ) | ||||||||||||||
Cash used in investing activities | — | — | (12,642 | ) | — | (12,642 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,494 | ) | — | — | — | (4,494 | ) | ||||||||||||||
Issuance of Class A non-voting common stock | 85 | — | — | — | 85 | ||||||||||||||||
Repurchase of Class A non-voting common stock | (2,314 | ) | — | — | — | (2,314 | ) | ||||||||||||||
Tax deficiency from share-based awards | (92 | ) | — | — | — | (92 | ) | ||||||||||||||
Other financing activities | — | — | (33,500 | ) | — | (33,500 | ) | ||||||||||||||
Cash flow used in financing activities | (6,815 | ) | — | (33,500 | ) | — | (40,315 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 197 | (8,217 | ) | (21,989 | ) | — | (30,009 | ) | |||||||||||||
Cash and cash equivalents, beginning of the period | 35 | 40,658 | 94,673 | — | 135,366 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 232 | $ | 32,441 | $ | 72,684 | $ | — | $ | 105,357 | |||||||||||
OPPNEHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows from operations: | |||||||||||||||||||||
Net income (loss) for the period | $ | (9,026 | ) | $ | 4,439 | $ | 7,103 | $ | — | $ | 2,516 | ||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||||||
Depreciation and amortization | — | — | 8,019 | — | 8,019 | ||||||||||||||||
Deferred income tax | — | — | (8,317 | ) | — | (8,317 | ) | ||||||||||||||
Amortization of notes receivable | — | — | 14,679 | — | 14,679 | ||||||||||||||||
Amortization of debt issuance costs | 479 | — | — | — | 479 | ||||||||||||||||
Amortization of intangible assets | — | — | 3,244 | — | 3,244 | ||||||||||||||||
Provision for credit losses | — | — | (308 | ) | — | (308 | ) | ||||||||||||||
Share-based compensation expense | — | — | 3,030 | — | 3,030 | ||||||||||||||||
Changes in operating assets and liabilities | 12,991 | 6,119 | (67,915 | ) | — | (48,805 | ) | ||||||||||||||
Cash provided by (used in) continuing operations | 4,444 | 10,558 | (40,465 | ) | — | (25,463 | ) | ||||||||||||||
Cash flows from Investment activities | |||||||||||||||||||||
Purchase of office facilities | — | — | -12,390 | — | -12,390 | ||||||||||||||||
Cash used in investing activities | — | — | (12,390 | ) | — | (12,390 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,489 | ) | — | — | — | (4,489 | ) | ||||||||||||||
Repurchase of Class A non-voting common stock | (1,766 | ) | — | — | — | (1,766 | ) | ||||||||||||||
Tax benefit from share-based compensation | (137 | ) | — | — | — | (137 | ) | ||||||||||||||
Other financing activities | — | — | 67,100 | — | 67,100 | ||||||||||||||||
Cash flow provided by (used in) financing activities | (6,392 | ) | — | 67,100 | — | 60,708 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (1,948 | ) | 10,558 | 14,245 | — | 22,855 | |||||||||||||||
Cash and cash equivalents, beginning of the period | 2,555 | 11,882 | 55,892 | — | 70,329 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 607 | $ | 22,440 | $ | 70,137 | $ | — | $ | 93,184 | |||||||||||
New_Accounting_Pronouncements_
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Testing Indefinite-Lived Intangible Assets for Impairment | ' |
On July 27, 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which gives entities the option of performing a qualitative assessment before the quantitative analysis. If entities determine the fair value of a reporting unit is more likely than not less than the carrying amount, the impairment needs to be assessed. The ASU is effective for fiscal years beginning after September 15, 2012 and early adoption is permitted. The Company evaluated this ASU and decided to continue to perform quantitative analysis for indefinite-lived intangible assets impairment. | |
Disclosures about Offsetting Assets and Liabilities | ' |
On December 31, 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” which requires new disclosures about balance sheet offsetting and related arrangements. For derivatives and financial assets and liabilities, the ASU requires disclosure of gross asset and liability amounts, amounts offset on the balance sheet, and amounts subject to the offsetting requirements but not offset on the balance sheet. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities.” The ASU clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU No. 2011-11. The ASU limits the scope of the new balance sheet offsetting disclosures in ASU No. 2011-11 to derivatives, repurchase agreements, and securities lending transactions. The effective date of the ASU coincides with the effective date of the disclosure requirements in ASU No. 2011-11. The Company adopted this guidance in the period ended March 31, 2013. See Note 5, Financial Instruments, below. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company adopted this guidance in the period ended March 31, 2013. | |
Financial Services-Investment Companies | ' |
In June 2013, the FASB issued ASU No. 2013-08 “Financial Services – Investment Companies, Amendments to the Scope, Measurement and Disclosure Requirement.” The ASU clarifies the characteristics of an investment company by amending the measurement criteria for certain interests in other investment companies. Additionally, the ASU introduces new disclosure requirements. The ASU is effective for the annual reporting period in the fiscal year that begins after December 15, 2013. The Company is currently evaluating the impact, if any, that the ASU will have on its financial condition, results of operations and cash flows. | |
Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ' |
In July 2013, the FASB issued ASU No. 2013-11 “Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU provides guidance that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. The ASU is effective for the annual reporting period in the fiscal year that begins after December 15, 2013. The Company is currently evaluating the impact, if any, that the ASU will have on its financial condition, results of operations and cash flows. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Earnings Per Share | ' | ||||||||||||||||
Earnings per share has been calculated as follows: | |||||||||||||||||
(Expressed in thousands, except number of shares and per share amounts) | |||||||||||||||||
For the Three months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic weighted average number of shares outstanding | 13,604,276 | 13,610,991 | 13,606,527 | 13,599,431 | |||||||||||||
Net dilutive effect of warrant, treasury method (1) | — | — | — | — | |||||||||||||
Net dilutive effect of share-based awards, treasury method (2) | 567,526 | 550,266 | 503,604 | 337,585 | |||||||||||||
Diluted weighted average number of shares outstanding | 14,171,802 | 14,161,257 | 14,110,131 | 13,937,016 | |||||||||||||
Net income for the period | $ | 5,508 | $ | 3,024 | $ | 12,467 | $ | 2,516 | |||||||||
Net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 | |||||||||||||
Net income attributable to Oppenheimer Holdings Inc. | $ | 5,237 | $ | 2,322 | $ | 11,748 | $ | 87 | |||||||||
Basic earnings per share | $ | 0.38 | $ | 0.17 | $ | 0.86 | $ | 0.01 | |||||||||
Diluted earnings per share | $ | 0.37 | $ | 0.16 | $ | 0.83 | $ | 0.01 | |||||||||
-1 | As part of the consideration for the 2008 acquisition of certain businesses from CIBC World Markets Corp. (“CIBC”), the Company issued a warrant to CIBC to purchase 1 million shares of Class A Stock of the Company at $48.62 per share exercisable five years from the January 14, 2008 acquisition date. The warrants expired on April 13, 2013. For the three and nine months ended September 30, 2012, the effect of the warrants was anti-dilutive. | ||||||||||||||||
-2 | For both the three and nine months ended September 30, 2013, the diluted earnings per share computation does not include the anti-dilutive effect of 57,573 shares of Class A Stock granted under share-based compensation arrangements (1,059,638 shares of Class A Stock granted under share-based compensation arrangements together with the warrant described in (1) for the three and nine months ended September 30, 2012). |
Receivable_from_and_Payable_to1
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Brokers And Dealers [Abstract] | ' | ||||||||
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | ' | ||||||||
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | |||||||||
(Expressed in thousands) | |||||||||
September 30, 2013 | December 31, 2012 | ||||||||
Receivable from brokers, dealers and clearing organizations consist of: | |||||||||
Securities borrowed | $ | 299,037 | $ | 365,642 | |||||
Receivable from brokers | 44,222 | 41,091 | |||||||
Securities failed to deliver | 33,649 | 10,031 | |||||||
Clearing organizations | 100 | 399 | |||||||
Omnibus accounts | 17,524 | 28,212 | |||||||
Other | 975 | 34,324 | |||||||
$ | 395,507 | $ | 479,699 | ||||||
Payable to brokers, dealers and clearing organizations consist of: | |||||||||
Securities loaned | $ | 251,751 | $ | 190,387 | |||||
Securities failed to receive | 12,774 | 11,315 | |||||||
Clearing organizations and other | 1,418 | 2,516 | |||||||
$ | 265,943 | $ | 204,218 | ||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value | ' | ||||||||||||||||||||||||
Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Owned | Sold | Owned | Sold | ||||||||||||||||||||||
U.S. Government, agency & sovereign obligations | $ | 805,586 | $ | 169,795 | $ | 525,255 | $ | 131,930 | |||||||||||||||||
Corporate debt and other obligations | 29,622 | 12,115 | 14,428 | 1,858 | |||||||||||||||||||||
Mortgage and other asset-backed securities | 3,626 | 4 | 2,920 | 18 | |||||||||||||||||||||
Municipal obligations | 77,421 | 629 | 59,010 | 467 | |||||||||||||||||||||
Convertible bonds | 46,870 | 19,618 | 49,130 | 8,868 | |||||||||||||||||||||
Corporate equities | 50,740 | 40,663 | 43,708 | 29,884 | |||||||||||||||||||||
Other | 68,604 | 241 | 65,291 | 425 | |||||||||||||||||||||
Total | $ | 1,082,469 | $ | 243,065 | $ | 759,742 | $ | 173,450 | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ' | ||||||||||||||||||||||||
Additional information regarding the valuation technique and inputs used is as follows: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements at September 30, 2013 | |||||||||||||||||||||||||
Product | Principal | Valuation | Fair Value | Valuation Technique | Unobservable Input | Range | Weighted | ||||||||||||||||||
Adjustment | Average | ||||||||||||||||||||||||
Auction Rate Securities(1) | $ | 122,132 | $ | 7,917 | $ | 114,215 | Discounted Cash Flow | Discount Rate | 1.10% to 3.21% | 1.59 | % | ||||||||||||||
Duration | 4 to 7 Years | 4.4 Years | |||||||||||||||||||||||
Current Yield(2) | 0.12% to 1.29% | 0.27 | % | ||||||||||||||||||||||
-1 | Includes ARS owned by the Company of $85.9 million included in the condensed consolidated balance sheet at September 30, 2013 as well as additional commitments to purchase ARS from clients of $36.2 million which is disclosed in these notes to the condensed consolidated financial statements. | ||||||||||||||||||||||||
-2 | Based on current auctions in comparable securities that have not failed. | ||||||||||||||||||||||||
Investments in Company-Sponsored Funds | ' | ||||||||||||||||||||||||
The following table provides information about the Company’s investments in Company-sponsored funds at September 30, 2013: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value | Unfunded | Redemption | Redemption | ||||||||||||||||||||||
Commitments | Frequency | Notice Period | |||||||||||||||||||||||
Hedge funds (1) | $ | 1,777 | $ | — | Quarterly - Annually | 30 - 120 Days | |||||||||||||||||||
Private equity funds (2) | 3,662 | 802 | N/A | N/A | |||||||||||||||||||||
$ | 5,439 | $ | 802 | ||||||||||||||||||||||
-1 | Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. | ||||||||||||||||||||||||
-2 | Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature these funds, investors are not permitted to make withdrawals without consent of the general partner. | ||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The Company’s assets and liabilities, recorded at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, have been categorized based upon the above fair value hierarchy as follows: | |||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 48,476 | $ | — | $ | — | $ | 48,476 | |||||||||||||||||
Securities segregated for regulatory and other purposes | 11,500 | — | — | 11,500 | |||||||||||||||||||||
Deposits with clearing organizations | 9,094 | — | — | 9,094 | |||||||||||||||||||||
Securities owned | |||||||||||||||||||||||||
U.S Treasury securities | 774,540 | — | — | 774,540 | |||||||||||||||||||||
U.S. Agency securities | 11,675 | 17,558 | — | 29,233 | |||||||||||||||||||||
Sovereign obligations | — | 1,813 | — | 1,813 | |||||||||||||||||||||
Corporate debt and other obligations | — | 29,622 | — | 29,622 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 3,626 | — | 3,626 | |||||||||||||||||||||
Municipal obligations | — | 63,919 | 13,502 | 77,421 | |||||||||||||||||||||
Convertible bonds | — | 46,870 | — | 46,870 | |||||||||||||||||||||
Corporate equities | 50,740 | — | — | 50,740 | |||||||||||||||||||||
Other | 1,439 | — | 67,165 | 68,604 | |||||||||||||||||||||
Securities owned, at fair value | 838,394 | 163,408 | 80,667 | 1,082,469 | |||||||||||||||||||||
Investments (1) | 10,636 | 44,732 | 6,126 | 61,494 | |||||||||||||||||||||
TBAs | — | 3,403 | — | 3,403 | |||||||||||||||||||||
Total | $ | 918,100 | $ | 211,543 | $ | 86,793 | $ | 1,216,436 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities sold, but not yet purchased | |||||||||||||||||||||||||
U.S Treasury securities | $ | 164,770 | $ | — | $ | — | $ | 164,770 | |||||||||||||||||
U.S. Agency securities | 4,999 | 26 | — | 5,025 | |||||||||||||||||||||
Sovereign obligations | — | — | — | — | |||||||||||||||||||||
Corporate debt and other obligations | — | 12,115 | — | 12,115 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 4 | — | 4 | |||||||||||||||||||||
Municipal obligations | — | 629 | — | 629 | |||||||||||||||||||||
Convertible bonds | — | 19,618 | — | 19,618 | |||||||||||||||||||||
Corporate equities | 40,663 | — | — | 40,663 | |||||||||||||||||||||
Other | 241 | — | — | 241 | |||||||||||||||||||||
Securities sold, but not yet purchased at fair value | 210,673 | 32,392 | — | 243,065 | |||||||||||||||||||||
Investments | 408 | — | — | 408 | |||||||||||||||||||||
Derivative contracts | 771 | 204 | 2,412 | 3,387 | |||||||||||||||||||||
TBAs | — | 536 | — | 536 | |||||||||||||||||||||
Total | $ | 211,852 | $ | 33,132 | $ | 2,412 | $ | 247,396 | |||||||||||||||||
-1 | Included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 58,945 | $ | — | $ | — | $ | 58,945 | |||||||||||||||||
Securities segregated for regulatory and other purposes | 11,499 | — | — | 11,499 | |||||||||||||||||||||
Deposits with clearing organizations | 9,095 | — | — | 9,095 | |||||||||||||||||||||
Securities owned | |||||||||||||||||||||||||
U.S Treasury securities | 497,546 | — | — | 497,546 | |||||||||||||||||||||
U.S. Agency securities | — | 27,690 | — | 27,690 | |||||||||||||||||||||
Sovereign obligations | — | 19 | — | 19 | |||||||||||||||||||||
Corporate debt and other obligations | 2,459 | 11,969 | — | 14,428 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 2,880 | 40 | 2,920 | |||||||||||||||||||||
Municipal obligations | — | 49,616 | 9,394 | 59,010 | |||||||||||||||||||||
Convertible bonds | — | 49,130 | — | 49,130 | |||||||||||||||||||||
Corporate equities | 31,958 | 11,750 | — | 43,708 | |||||||||||||||||||||
Other | 2,328 | — | 62,963 | 65,291 | |||||||||||||||||||||
Securities owned, at fair value | 534,291 | 153,054 | 72,397 | 759,742 | |||||||||||||||||||||
Investments (1) | 10,477 | 37,088 | 12,954 | 60,519 | |||||||||||||||||||||
TBAs | — | 3,188 | — | 3,188 | |||||||||||||||||||||
$ | 624,307 | $ | 193,330 | $ | 85,351 | $ | 902,988 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities sold, but not yet purchased | |||||||||||||||||||||||||
U.S Treasury securities | $ | 131,899 | $ | — | $ | — | $ | 131,899 | |||||||||||||||||
U.S. Agency securities | — | 31 | — | 31 | |||||||||||||||||||||
Corporate debt and other obligations | — | 1,858 | — | 1,858 | |||||||||||||||||||||
Mortgage and other asset-backed securities | — | 18 | — | 18 | |||||||||||||||||||||
Municipal obligations | — | 467 | — | 467 | |||||||||||||||||||||
Convertible bonds | — | 8,868 | — | 8,868 | |||||||||||||||||||||
Corporate equities | 20,946 | 8,938 | — | 29,884 | |||||||||||||||||||||
Other | 325 | — | 100 | 425 | |||||||||||||||||||||
Securities sold, but not yet purchased at fair value | 153,170 | 20,180 | 100 | 173,450 | |||||||||||||||||||||
Investments | 258 | — | — | 258 | |||||||||||||||||||||
Derivative contracts | 286 | 124 | 2,647 | 3,057 | |||||||||||||||||||||
TBAs | — | 175 | — | 175 | |||||||||||||||||||||
$ | 153,714 | $ | 20,479 | $ | 2,747 | $ | 176,940 | ||||||||||||||||||
-1 | Included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 67 | $ | — | $ | — | $ | (8 | ) | $ | (59 | ) | $ | — | |||||||||||
Municipals (2) | 11,569 | (192 | ) | 2,275 | (150 | ) | — | 13,502 | |||||||||||||||||
Other (3) | 66,743 | (53 | ) | 475 | — | — | 67,165 | ||||||||||||||||||
Investments (4) | 12,974 | (413 | ) | 1,000 | (7,435 | ) | — | 6,126 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | — | — | — | — | — | — | |||||||||||||||||||
Derivative contracts | 2,329 | (83 | ) | — | — | — | 2,412 | ||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 12 | $ | 3 | $ | 11 | $ | — | $ | — | $ | 26 | |||||||||||||
Municipals (2) | 10,120 | (13 | ) | 655 | (90 | ) | — | 10,672 | |||||||||||||||||
Other (3) | 64,644 | 410 | 5,950 | (4,625 | ) | — | 66,379 | ||||||||||||||||||
Investments (4) | 12,760 | (41 | ) | 231 | (145 | ) | — | 12,805 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivative contracts | 2,334 | 81 | — | — | — | 2,253 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 40 | $ | — | $ | — | $ | (8 | ) | $ | (32 | ) | $ | — | |||||||||||
Municipals (2) | 9,394 | 733 | 3,725 | (350 | ) | — | 13,502 | ||||||||||||||||||
Other (3) | 62,963 | (1,173 | ) | 9,450 | (4,075 | ) | — | 67,165 | |||||||||||||||||
Investments (4) | 12,954 | 210 | 1,000 | (8,038 | ) | — | 6,126 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | 100 | — | 100 | — | — | — | |||||||||||||||||||
Derivative contracts | 2,647 | 235 | — | — | — | 2,412 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Level 3 Assets and Liabilities | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Beginning | Total Realized | Purchases | Sales and | Transfers | Ending | ||||||||||||||||||||
Balance | and Unrealized | and Issuances | Settlements | In (Out) | Balance | ||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(Losses)(5)(6) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Mortgage and other asset-backed securities (1) | $ | 16 | $ | (3 | ) | $ | 95 | $ | (80 | ) | $ | (2 | ) | $ | 26 | ||||||||||
Municipals (2) | 3,562 | (510 | ) | 9,960 | (2,340 | ) | — | 10,672 | |||||||||||||||||
Other (3) | 65,001 | (351 | ) | 20,675 | (18,946 | ) | — | 66,379 | |||||||||||||||||
Investments (4) | 12,482 | 396 | 358 | (442 | ) | 11 | 12,805 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other (3) | 50 | — | 50 | — | — | — | |||||||||||||||||||
Derivative contracts | 2,347 | 94 | — | — | — | 2,253 | |||||||||||||||||||
-1 | Represents private placements of non-agency collateralized mortgage obligations. | ||||||||||||||||||||||||
-2 | Includes municipal auction rate securities. | ||||||||||||||||||||||||
-3 | Represents auction rate preferred securities and student loan auction rate securities that failed in the auction rate market. | ||||||||||||||||||||||||
-4 | Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company. | ||||||||||||||||||||||||
-5 | Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations. | ||||||||||||||||||||||||
-6 | Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. | ||||||||||||||||||||||||
Assets and Liabilities Not Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
Assets and liabilities not measured at fair value on a recurring basis as of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurement: Assets | |||||||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash | $ | 56,881 | $ | 56,881 | $ | 56,881 | $ | — | $ | — | $ | 56,881 | |||||||||||||
Cash segregated for regulatory and other purposes | 25,069 | 25,069 | 25,069 | — | — | 25,069 | |||||||||||||||||||
Deposits with clearing organization | 15,960 | 15,960 | 15,960 | — | — | 15,960 | |||||||||||||||||||
Receivable from brokers and clearing organizations | |||||||||||||||||||||||||
Deposits paid for securities borrowed | 299,037 | 299,037 | — | 299,037 | — | 299,037 | |||||||||||||||||||
Receivables from brokers | 44,222 | 44,222 | — | 44,222 | — | 44,222 | |||||||||||||||||||
Securities failed to deliver | 33,649 | 33,649 | — | 33,649 | — | 33,649 | |||||||||||||||||||
Clearing organizations | 100 | 100 | — | 100 | — | 100 | |||||||||||||||||||
Omnibus accounts | 17,524 | 17,524 | — | 17,524 | — | 17,524 | |||||||||||||||||||
Other | 975 | 975 | — | 975 | — | 975 | |||||||||||||||||||
395,507 | 395,507 | — | 395,507 | — | 395,507 | ||||||||||||||||||||
Receivable from customers | 873,433 | 873,433 | — | 873,433 | — | 873,433 | |||||||||||||||||||
Notes receivable | 43,113 | 43,113 | — | — | 43,113 | 43,113 | |||||||||||||||||||
Other assets | |||||||||||||||||||||||||
Mortgage servicing rights (MSRs) | 28,121 | 38,453 | — | — | 38,453 | 38,453 | |||||||||||||||||||
Mortgage receivable (1) | 65,757 | 65,757 | — | 65,757 | — | 65,757 | |||||||||||||||||||
Escrow deposit (2) | 25,000 | 25,000 | 25,000 | — | — | 25,000 | |||||||||||||||||||
-1 | Mortgage receivable balance represents loan amounts outstanding after funding but prior to Government National Mortgage Association (“GNMA”) securitization. Amount funded by warehouse facility (warehouse payable) is included in accounts payable and other liabilities on condensed consolidated balance sheet (see note 4 below). Residual amount between asset and liability is funded with internally generated funds. | ||||||||||||||||||||||||
-2 | Represent escrow monies deposited with commercial bank. Corresponds with payable to third party in accounts payable and other liabilities on condensed consolidated balance sheet (see note 4 below). | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value Measurement: Liabilities | |||||||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Drafts payable | $ | 36,165 | $ | 36,165 | $ | 36,165 | $ | — | $ | — | $ | 36,165 | |||||||||||||
Bank call loans | 94,800 | 94,800 | 94,800 | — | — | 94,800 | |||||||||||||||||||
Payables to brokers and clearing organizations | |||||||||||||||||||||||||
Deposits received for securities loaned | 251,751 | 251,751 | — | 251,751 | — | 251,751 | |||||||||||||||||||
Securities failed to receive | 12,774 | 12,774 | — | 12,774 | — | 12,774 | |||||||||||||||||||
Clearing organizations and other | 1,418 | 1,418 | — | 1,418 | — | 1,418 | |||||||||||||||||||
265,943 | 265,943 | — | 265,943 | — | 265,943 | ||||||||||||||||||||
Payables to customers | 690,911 | 690,911 | — | 690,911 | — | 690,911 | |||||||||||||||||||
Securities sold under agreements to repurchase | 630,853 | 630,853 | — | 630,853 | — | 630,853 | |||||||||||||||||||
Accounts payable and other liabilities | |||||||||||||||||||||||||
Warehouse payable (3) | 49,137 | 49,137 | — | 49,137 | — | 49,137 | |||||||||||||||||||
Payable to third party (4) | 25,000 | 25,000 | 25,000 | — | — | 25,000 | |||||||||||||||||||
Senior secured notes | 195,000 | 208,529 | — | 208,529 | — | 208,529 | |||||||||||||||||||
-3 | Warehouse payable represents loans outstanding under warehouse facility provided by commercial bank but prior to GNMA securitization. Used to fund mortgage receivable in other assets on condensed consolidated balance sheet (see note 1 above). | ||||||||||||||||||||||||
-4 | Corresponds with escrow deposit in other assets on condensed consolidated balance sheet (see note 2 above). | ||||||||||||||||||||||||
Notional Amounts and Fair Values of Derivatives by Product | ' | ||||||||||||||||||||||||
The notional amounts and fair values of the Company’s derivatives at September 30, 2013 and December 31, 2012 by product were as follows: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value of Derivative Instruments at September 30, 2013 | |||||||||||||||||||||||||
Description | Notional | Fair Value | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures (2) | $ | 73,600 | $ | 771 | ||||||||||||||||||||
Federal Funds Futures (2) | 5,920,000 | 180 | |||||||||||||||||||||||
Euro Dollars Futures (2) | 105,000 | 24 | |||||||||||||||||||||||
Other contracts | ARS purchase commitments (3) | 36,197 | 2,412 | ||||||||||||||||||||||
$ | 6,134,797 | $ | 3,387 | ||||||||||||||||||||||
-1 | See “Fair Value of Derivative Instruments” above for description of derivative financial instruments. | ||||||||||||||||||||||||
-2 | Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
-3 | Included in other liabilities on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Fair Value of Derivative Instruments at December 31, 2012 | |||||||||||||||||||||||||
Description | Notional | Fair Value | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures (2) | $ | 56,000 | $ | 286 | ||||||||||||||||||||
Federal Funds Futures (2) | 6,070,000 | 120 | |||||||||||||||||||||||
Euro Dollars Futures (2) | 15,000 | 4 | |||||||||||||||||||||||
Other contracts | ARS purchase commitments (3) | 38,343 | 2,647 | ||||||||||||||||||||||
$ | 6,179,343 | $ | 3,057 | ||||||||||||||||||||||
-1 | See “Fair Value of Derivative Instruments” above for description of derivative financial instruments. | ||||||||||||||||||||||||
-2 | Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
-3 | Included in other liabilities on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations | ' | ||||||||||||||||||||||||
The following table presents the location and fair value amounts of the Company’s derivative instruments and their effect on the condensed consolidated statement of operations for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | $ | (356 | ) | ||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (235 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | (36 | ) | ||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 83 | ||||||||||||||||||||||
$ | (544 | ) | |||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Interest rate contracts | Caps (1) | N/A | $ | — | |||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | (395 | ) | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (334 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | 18 | |||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 81 | ||||||||||||||||||||||
$ | (630 | ) | |||||||||||||||||||||||
-1 | As noted above in “Cash flow hedges used for asset and liability management”, interest rate caps are used to hedge interest rate risk associated with the Subordinated Note due 2014 ($100.0 million). With the repayment of the Subordinated Note in the second quarter of 2011, this cap is no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012. | ||||||||||||||||||||||||
The following table presents the location and fair value amounts of the Company’s derivative instruments and their effect on the condensed consolidated statement of operations for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | $ | 446 | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (287 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | 35 | |||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | (235 | ) | |||||||||||||||||||||
$ | (41 | ) | |||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Recognized in Income on Derivatives | |||||||||||||||||||||||||
(pre-tax) | |||||||||||||||||||||||||
Types | Description | Location | Gain (Loss) | ||||||||||||||||||||||
Interest rate contracts | Caps (1) | N/A | $ | (12 | ) | ||||||||||||||||||||
Commodity contracts | U.S. Treasury Futures | Principal transaction revenue | (1,032 | ) | |||||||||||||||||||||
Federal Funds Futures | Principal transaction revenue | (74 | ) | ||||||||||||||||||||||
Euro Dollars Futures | Principal transaction revenue | (9 | ) | ||||||||||||||||||||||
Other contracts | ARS purchase commitment | Principal transaction revenue | 94 | ||||||||||||||||||||||
$ | (1,033 | ) | |||||||||||||||||||||||
-1 | As noted above in “Cash flow hedges used for asset and liability management”, interest rate caps are used to hedge interest rate risk associated with the Subordinated Note due 2014 ($100.0 million). With the repayment of the Subordinated Note in the second quarter of 2011, this cap is no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012. | ||||||||||||||||||||||||
Notional and Fair Values of TBAs | ' | ||||||||||||||||||||||||
The following table summarizes the notional and fair values of the TBAs as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Sale of TBAs (1) | $ | 381,124 | $ | 3,403 | $ | 449,065 | $ | 3,188 | |||||||||||||||||
Purchase of TBAs | $ | 42,709 | $ | 536 | $ | 117,573 | $ | 175 | |||||||||||||||||
Funding Commitments | 266,273 | 304,390 | |||||||||||||||||||||||
$ | 308,982 | $ | 421,963 | ||||||||||||||||||||||
-1 | TBAs are used to offset exposures related to commitments to provide funding for Federal Housing Administration (“FHA”) loans at OMHHF. At September 30, 2013, the loan commitments balance was $266.3 million ($304.4 million at December 31, 2012). In addition, at September 30, 2013, OMHHF had a loan receivable balance (included in other assets in the condensed consolidated balance sheet) of $65.8 million ($22.9 million at December 31, 2012) which relates to prior loan commitments that have been funded but have not yet been securitized. The “when issued” securitizations of these loans have been sold to market counterparties. | ||||||||||||||||||||||||
Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions | ' | ||||||||||||||||||||||||
The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Assets | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Received | ||||||||||||||||||||||
Assets | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Reverse repurchase agreements | $ | 2,568,939 | $ | 2,568,939 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Securities borrowed (1) | 299,037 | — | 299,037 | (299,037 | ) | — | — | ||||||||||||||||||
Total | $ | 2,867,976 | $ | 2,568,939 | $ | 299,037 | $ | (299,037 | ) | $ | — | $ | — | ||||||||||||
-1 | Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Liabilities | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Pledged | ||||||||||||||||||||||
Liabilities | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Repurchase agreements | $ | 3,199,792 | $ | 2,568,939 | $ | 630,853 | $ | (630,853 | ) | $ | — | $ | — | ||||||||||||
Securities loaned (2) | 251,751 | — | 251,751 | (251,751 | ) | — | — | ||||||||||||||||||
Total | $ | 3,451,543 | $ | 2,568,939 | $ | 882,604 | $ | (882,604 | ) | $ | — | $ | — | ||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Assets | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Received | ||||||||||||||||||||||
Assets | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Reverse repurchase agreements | $ | 1,160,239 | $ | 1,160,239 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Securities borrowed (1) | 365,642 | — | 365,642 | (365,642 | ) | — | — | ||||||||||||||||||
Total | $ | 1,525,881 | $ | 1,160,239 | $ | 365,642 | $ | (365,642 | ) | $ | — | $ | — | ||||||||||||
-1 | Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Gross Amounts Not Offset on | |||||||||||||||||||||||||
the Balance Sheet | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Financial | Cash | Net Amount | ||||||||||||||||||||
Amounts of | Amounts | of Liabilities | Instruments | Collateral | |||||||||||||||||||||
Recognized | Offset in the | Presented on | Pledged | ||||||||||||||||||||||
Liabilities | Statement of | the Balance | |||||||||||||||||||||||
Financial | Sheet | ||||||||||||||||||||||||
Position | |||||||||||||||||||||||||
Repurchase agreements | $ | 1,552,630 | $ | 1,160,239 | $ | 392,391 | $ | (392,391 | ) | $ | — | $ | — | ||||||||||||
Securities loaned (2) | 190,387 | — | 190,387 | (190,387 | ) | — | — | ||||||||||||||||||
Total | $ | 1,743,017 | $ | 1,160,239 | $ | 582,778 | $ | (582,778 | ) | $ | — | $ | — | ||||||||||||
-2 | Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
Variable Interest Entities | ' | ||||||||||||||||||||||||
The following tables set forth the total VIE assets, the carrying value of the subsidiaries’ variable interests, and the Company’s maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Exposure | |||||||||||||||||||||||||
Carrying Value of the | to Loss in | ||||||||||||||||||||||||
Total | Company’s Variable Interest | Capital | Non-consolidated | ||||||||||||||||||||||
VIE Assets (1) | Assets (2) | Liabilities | Commitments | VIEs | |||||||||||||||||||||
Hedge funds | $ | 2,064,368 | $ | 284 | $ | — | $ | — | $ | 284 | |||||||||||||||
Private equity funds | 108,463 | 32 | — | 7 | 39 | ||||||||||||||||||||
Total | $ | 2,172,831 | $ | 316 | $ | — | $ | 7 | $ | 323 | |||||||||||||||
-1 | Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs. | ||||||||||||||||||||||||
-2 | Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. | ||||||||||||||||||||||||
(Expressed in thousands) | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Exposure | |||||||||||||||||||||||||
Carrying Value of the | to Loss in | ||||||||||||||||||||||||
Total | Company’s Variable Interest | Capital | Non-consolidated | ||||||||||||||||||||||
VIE Assets (1) | Assets (2) | Liabilities | Commitments | VIEs | |||||||||||||||||||||
Hedge funds | $ | 1,868,178 | $ | 372 | $ | — | $ | — | $ | 372 | |||||||||||||||
Private equity funds | 171,169 | 32 | — | 8 | 40 | ||||||||||||||||||||
Total | $ | 2,039,347 | $ | 404 | $ | — | $ | 8 | $ | 412 | |||||||||||||||
-1 | Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs. | ||||||||||||||||||||||||
-2 | Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Commercial_Mortgage_Banking_Ta
Commercial Mortgage Banking (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Summary of Changes in Carrying Value of Mortgage Servicing Rights | ' | ||||||||||||||||
The following tables summarize the changes in carrying value of MSRs for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Balance, as of December 31, 2012 | $ | 26,983 | |||||||||||||||
Originations (1) | 5,668 | ||||||||||||||||
Purchases | 1,108 | ||||||||||||||||
Disposals (1) | (4,518 | ) | |||||||||||||||
Amortization expense | (1,120 | ) | |||||||||||||||
Balance, as of September 30, 2013 | $ | 28,121 | |||||||||||||||
-1 | Includes refinancing. | ||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Balance, as of December 31, 2011 | $ | 22,795 | |||||||||||||||
Originations (1) | 4,337 | ||||||||||||||||
Purchases | 2,582 | ||||||||||||||||
Disposals (1) | (450 | ) | |||||||||||||||
Amortization expense | (2,337 | ) | |||||||||||||||
Balance, as of September 30, 2012 | $ | 26,927 | |||||||||||||||
-1 | Includes refinancing. | ||||||||||||||||
Schedule of Amortization Expense | ' | ||||||||||||||||
Servicing rights are amortized using the straight-line method over 10 years. Amortization expense for the next five years is as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
2013 | $ | 3,538 | |||||||||||||||
2014 | 3,531 | ||||||||||||||||
2015 | 3,531 | ||||||||||||||||
2016 | 3,498 | ||||||||||||||||
2017 | 3,435 | ||||||||||||||||
Thereafter | 10,588 | ||||||||||||||||
$ | 28,121 | ||||||||||||||||
Components of Mortgage Servicing Rights Fees | ' | ||||||||||||||||
The Company receives fees during the course of servicing the mortgage loans. The amount of these fees for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Servicing fees | $ | 1,287 | $ | 1,080 | $ | 3,739 | $ | 3,016 | |||||||||
Late fees | 19 | 25 | 94 | 25 | |||||||||||||
Ancillary fees | 170 | 128 | 291 | 320 | |||||||||||||
Total MSR fees | $ | 1,476 | $ | 1,233 | $ | 4,124 | $ | 3,361 | |||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Schedule of Long-Term Debt | ' | ||||||||||||
(Expressed in thousands) | |||||||||||||
Issued | Maturity | September 30, | December 31, | ||||||||||
Date | 2013 | 2012 | |||||||||||
Senior Secured Notes | 4/15/18 | $ | 195,000 | $ | 195,000 |
Share_Capital_Tables
Share Capital (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Number of Shares of Class A Stock Outstanding | ' | ||||||||||||||||
The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Class A Stock outstanding, beginning of period | 13,496,783 | 13,489,162 | 13,508,318 | 13,572,265 | |||||||||||||
Issued pursuant to shared-based compensation plans | 65,227 | 40,850 | 65,227 | 57,647 | |||||||||||||
Repurchased and cancelled pursuant to the stock buy-back | (119,251 | ) | (15,000 | ) | (130,786 | ) | (114,900 | ) | |||||||||
Class A Stock outstanding, end of period | 13,442,759 | 13,515,012 | 13,442,759 | 13,515,012 | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reported Revenue and Profit Before Income Taxes | ' | ||||||||||||||||
The table below presents information about the reported revenue and net income before taxes of the Company for the three and nine months ended September 30, 2013 and 2012. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue | |||||||||||||||||
Private client division * | $ | 144,316 | $ | 133,798 | $ | 430,963 | $ | 406,530 | |||||||||
Asset management * | 21,488 | 19,812 | 64,450 | 58,848 | |||||||||||||
Capital markets | 68,460 | 68,587 | 201,495 | 209,477 | |||||||||||||
Commercial mortgage banking | 9,314 | 8,738 | 26,857 | 27,726 | |||||||||||||
Corporate/Other | (202 | ) | 903 | 2,587 | 616 | ||||||||||||
Total | $ | 243,376 | $ | 231,838 | $ | 726,352 | $ | 703,197 | |||||||||
Income (loss) before income taxes | |||||||||||||||||
Private client division * | $ | 15,088 | $ | 11,825 | $ | 48,113 | $ | 39,557 | |||||||||
Asset management * | 6,387 | 4,129 | 20,332 | 13,225 | |||||||||||||
Capital markets | 4,301 | 3,474 | 8,806 | 4,479 | |||||||||||||
Commercial mortgage banking | 2,823 | 3,155 | 7,977 | 11,985 | |||||||||||||
Corporate/Other | (20,436 | ) | (17,325 | ) | (64,678 | ) | (62,638 | ) | |||||||||
Total | $ | 8,163 | $ | 5,258 | $ | 20,550 | $ | 6,608 | |||||||||
* | Asset management fees are allocated 22.5% to the Asset Management and 77.5% to the Private Client Divisions. | ||||||||||||||||
Revenue Classified by Major Geographic Areas | ' | ||||||||||||||||
Revenue, classified by the major geographic areas in which it was earned for the three and nine months ended September 30, 2013 and 2012, was as follows: | |||||||||||||||||
(Expressed in thousands) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 231,777 | $ | 222,226 | $ | 693,251 | $ | 670,339 | |||||||||
Europe/Middle East | 9,210 | 7,475 | 26,930 | 26,155 | |||||||||||||
Asia | 1,309 | 332 | 2,843 | 633 | |||||||||||||
South America | 1,080 | 1,805 | 3,328 | 6,070 | |||||||||||||
Total | $ | 243,376 | $ | 231,838 | $ | 726,352 | $ | 703,197 | |||||||||
Supplemental_Guarantor_Condens1
Supplemental Guarantor Condensed Consolidated Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 232 | $ | 32,441 | $ | 72,684 | $ | — | $ | 105,357 | |||||||||||
Cash and securities segregated for regulatory and other purposes | — | — | 36,569 | — | 36,569 | ||||||||||||||||
Deposits with clearing organizations | — | — | 25,054 | — | 25,054 | ||||||||||||||||
Receivable from brokers and clearing organizations | — | — | 395,507 | — | 395,507 | ||||||||||||||||
Receivable from customers, net of allowance for credit losses of $2,434 | — | — | 873,433 | — | 873,433 | ||||||||||||||||
Income tax receivable | 18,315 | 26,657 | (816 | ) | (38,004 | ) | 6,152 | ||||||||||||||
Securities owned, including amounts pledged of $805,399, at fair value | — | 2,137 | 1,080,332 | — | 1,082,469 | ||||||||||||||||
Subordinated loan receivable | — | 112,558 | — | (112,558 | ) | — | |||||||||||||||
Notes receivable, net | — | — | 43,113 | — | 43,113 | ||||||||||||||||
Office facilities, net | — | 21,504 | 12,036 | — | 33,540 | ||||||||||||||||
Deferred tax assets, net | 470 | 309 | 36,412 | (34,713 | ) | 2,478 | |||||||||||||||
Intangible assets, net | — | — | 31,700 | — | 31,700 | ||||||||||||||||
Goodwill | — | — | 137,889 | — | 137,889 | ||||||||||||||||
Other | 3,010 | 26,833 | 193,544 | — | 223,387 | ||||||||||||||||
Investment in subsidiaries | 529,585 | 892,592 | (185,179 | ) | (1,236,998 | ) | — | ||||||||||||||
Intercompany receivables | 164,214 | (73,818 | ) | (24,522 | ) | (65,874 | ) | — | |||||||||||||
$ | 715,826 | $ | 1,041,213 | $ | 2,727,756 | $ | (1,488,147 | ) | $ | 2,996,648 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Drafts payable | $ | — | $ | — | $ | 36,165 | $ | — | $ | 36,165 | |||||||||||
Bank call loans | — | — | 94,800 | — | 94,800 | ||||||||||||||||
Payable to brokers and clearing organizations | — | — | 265,943 | — | 265,943 | ||||||||||||||||
Payable to customers | — | — | 690,911 | — | 690,911 | ||||||||||||||||
Securities sold under agreements to repurchase | — | — | 630,853 | — | 630,853 | ||||||||||||||||
Securities sold, but not yet purchased, at fair value | — | — | 243,065 | — | 243,065 | ||||||||||||||||
Accrued compensation | — | — | 133,197 | — | 133,197 | ||||||||||||||||
Accounts payable and other liabilities | 8,093 | 57,926 | 125,512 | (90 | ) | 191,441 | |||||||||||||||
Income tax payable | 2,440 | 22,189 | 13,376 | (38,005 | ) | — | |||||||||||||||
Senior secured notes | 195,000 | — | — | — | 195,000 | ||||||||||||||||
Subordinated indebtedness | — | — | 112,558 | (112,558 | ) | — | |||||||||||||||
Deferred tax liabilities, net | — | — | 34,713 | (34,713 | ) | — | |||||||||||||||
Intercompany payables | — | 65,875 | — | (65,875 | ) | — | |||||||||||||||
205,533 | 145,990 | 2,381,093 | (251,241 | ) | 2,481,375 | ||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||
Stockholders’ equity attributable to | 510,293 | 895,223 | 341,683 | (1,236,906 | ) | 510,293 | |||||||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Noncontrolling interest | — | — | 4,980 | — | 4,980 | ||||||||||||||||
510,293 | 895,223 | 346,663 | (1,236,906 | ) | 515,273 | ||||||||||||||||
$ | 715,826 | $ | 1,041,213 | $ | 2,727,756 | $ | (1,488,147 | ) | $ | 2,996,648 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF DECEMBER 31, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 40,658 | $ | 94,673 | $ | — | $ | 135,366 | |||||||||||
Cash and securities segregated for regulatory and other purposes | — | — | 33,000 | — | 33,000 | ||||||||||||||||
Deposits with clearing organizations | — | — | 25,954 | — | 25,954 | ||||||||||||||||
Receivable from brokers and clearing organizations | — | — | 479,699 | — | 479,699 | ||||||||||||||||
Receivable from customers, net of allowance for credit losses of $2,256 | — | — | 817,941 | — | 817,941 | ||||||||||||||||
Income tax receivable | 13,207 | 30,568 | (450 | ) | (42,874 | ) | 451 | ||||||||||||||
Securities owned, including amounts pledged of $569,995, at fair value | — | 2,459 | 757,283 | — | 759,742 | ||||||||||||||||
Subordinated loan receivable | — | 112,558 | — | (112,558 | ) | — | |||||||||||||||
Notes receivable, net | — | — | 47,324 | — | 47,324 | ||||||||||||||||
Office facilities, net | — | 15,547 | 12,785 | — | 28,332 | ||||||||||||||||
Deferred tax assets, net | (143 | ) | 309 | 52,350 | (36,176 | ) | 16,340 | ||||||||||||||
Intangible assets, net | — | — | 31,700 | — | 31,700 | ||||||||||||||||
Goodwill | — | — | 137,889 | — | 137,889 | ||||||||||||||||
Other | 3,418 | 1,437 | 159,427 | — | 164,282 | ||||||||||||||||
Investment in subsidiaries | 506,679 | 880,609 | (195,045 | ) | (1,192,243 | ) | — | ||||||||||||||
Intercompany receivables | 178,743 | (114,449 | ) | (27,686 | ) | (36,608 | ) | — | |||||||||||||
$ | 701,939 | $ | 969,696 | $ | 2,426,844 | $ | (1,420,459 | ) | $ | 2,678,020 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||
Drafts payable | $ | — | $ | — | $ | 56,586 | $ | — | $ | 56,586 | |||||||||||
Bank call loans | — | — | 128,300 | — | 128,300 | ||||||||||||||||
Payable to brokers and clearing organizations | — | — | 204,218 | — | 204,218 | ||||||||||||||||
Payable to customers | — | — | 692,378 | — | 692,378 | ||||||||||||||||
Securities sold under agreements to repurchase | — | — | 392,391 | — | 392,391 | ||||||||||||||||
Securities sold, but not yet purchased, at fair value | — | — | 173,450 | — | 173,450 | ||||||||||||||||
Accrued compensation | — | — | 150,434 | — | 150,434 | ||||||||||||||||
Accounts payable and other liabilities | 3,759 | 43,350 | 133,646 | (493 | ) | 180,262 | |||||||||||||||
Income tax payable | 2,440 | 22,189 | 18,687 | (43,316 | ) | — | |||||||||||||||
Senior secured notes | 195,000 | — | — | — | 195,000 | ||||||||||||||||
Subordinated indebtedness | — | — | 112,558 | (112,558 | ) | — | |||||||||||||||
Deferred tax liabilities, net | — | (943 | ) | 36,677 | (35,734 | ) | — | ||||||||||||||
Intercompany payables | — | 36,605 | — | (36,605 | ) | — | |||||||||||||||
201,199 | 101,201 | 2,099,325 | (228,706 | ) | 2,173,019 | ||||||||||||||||
Stockholders’ equity | |||||||||||||||||||||
Stockholders’ equity attributable to | 500,740 | 868,495 | 323,258 | (1,191,753 | ) | 500,740 | |||||||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Noncontrolling interest | — | — | 4,261 | — | 4,261 | ||||||||||||||||
500,740 | 868,495 | 327,519 | (1,191,753 | ) | 505,001 | ||||||||||||||||
$ | 701,939 | $ | 969,696 | $ | 2,426,844 | $ | (1,420,459 | ) | $ | 2,678,020 | |||||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 120,252 | $ | — | $ | 120,252 | |||||||||||
Principal transactions, net | — | 26 | 10,321 | — | 10,347 | ||||||||||||||||
Interest | — | 2,777 | 14,805 | (3,143 | ) | 14,439 | |||||||||||||||
Investment banking | — | — | 21,362 | — | 21,362 | ||||||||||||||||
Advisory fees | — | — | 60,650 | (533 | ) | 60,117 | |||||||||||||||
Other | — | 42 | 16,859 | (42 | ) | 16,859 | |||||||||||||||
— | 2,845 | 244,249 | (3,718 | ) | 243,376 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 207 | — | 160,874 | — | 161,081 | ||||||||||||||||
Clearing and exchange fees | — | — | 6,099 | — | 6,099 | ||||||||||||||||
Communications and technology | 23 | — | 16,976 | — | 16,999 | ||||||||||||||||
Occupancy and equipment costs | — | — | 16,447 | (42 | ) | 16,405 | |||||||||||||||
Interest | 4,375 | — | 4,932 | (3,143 | ) | 6,164 | |||||||||||||||
Other | 285 | 4 | 28,709 | (533 | ) | 28,465 | |||||||||||||||
4,890 | 4 | 234,037 | (3,718 | ) | 235,213 | ||||||||||||||||
Income (loss) before income taxes | (4,890 | ) | 2,841 | 10,212 | — | 8,163 | |||||||||||||||
Income tax provision (benefit) | (1,792 | ) | 1,808 | 2,639 | — | 2,655 | |||||||||||||||
Net income (loss) for the period | (3,098 | ) | 1,033 | 7,573 | — | 5,508 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 271 | — | 271 | ||||||||||||||||
Equity in subsidiaries | 8,335 | — | — | (8,335 | ) | — | |||||||||||||||
Net income attributable to | $ | 5,237 | $ | 1,033 | $ | 7,302 | $ | (8,335 | ) | $ | 5,237 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income | $ | — | $ | — | $ | 656 | $ | — | $ | 656 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 364,272 | $ | — | $ | 364,272 | |||||||||||
Principal transactions, net | — | 38 | 33,558 | — | 33,596 | ||||||||||||||||
Interest | 5 | 8,370 | 40,119 | (8,578 | ) | 39,916 | |||||||||||||||
Investment banking | — | — | 62,377 | — | 62,377 | ||||||||||||||||
Advisory fees | — | — | 179,137 | (1,720 | ) | 177,417 | |||||||||||||||
Other | — | 126 | 48,774 | (126 | ) | 48,774 | |||||||||||||||
5 | 8,534 | 728,237 | (10,424 | ) | 726,352 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 902 | — | 479,394 | — | 480,296 | ||||||||||||||||
Clearing and exchange fees | — | — | 18,434 | — | 18,434 | ||||||||||||||||
Communications and technology | 81 | — | 48,800 | — | 48,881 | ||||||||||||||||
Occupancy and equipment costs | — | — | 51,237 | (126 | ) | 51,111 | |||||||||||||||
Interest | 13,125 | — | 15,622 | (8,578 | ) | 20,169 | |||||||||||||||
Other | 1,045 | 23 | 87,563 | (1,720 | ) | 86,911 | |||||||||||||||
15,153 | 23 | 701,050 | (10,424 | ) | 705,802 | ||||||||||||||||
Income (loss) before income taxes | (15,148 | ) | 8,511 | 27,187 | — | 20,550 | |||||||||||||||
Income tax provision (benefit) | (5,723 | ) | 3,702 | 10,104 | — | 8,083 | |||||||||||||||
Net income (loss) for the period | (9,425 | ) | 4,809 | 17,083 | — | 12,467 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 719 | — | 719 | ||||||||||||||||
Equity in subsidiaries | 21,173 | — | — | (21,173 | ) | — | |||||||||||||||
Net income attributable to | $ | 11,748 | $ | 4,809 | $ | 16,364 | $ | (21,173 | ) | $ | 11,748 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income (loss) | $ | (3 | ) | $ | — | $ | 1,159 | $ | — | $ | 1,156 | ||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 113,424 | $ | — | $ | 113,424 | |||||||||||
Principal transactions, net | — | 438 | 13,934 | — | 14,372 | ||||||||||||||||
Interest | — | 3,049 | 14,554 | (2,780 | ) | 14,823 | |||||||||||||||
Investment banking | — | — | 21,589 | — | 21,589 | ||||||||||||||||
Advisory fees | — | — | 53,645 | (630 | ) | 53,015 | |||||||||||||||
Other | — | 42 | 14,617 | (44 | ) | 14,615 | |||||||||||||||
— | 3,529 | 231,763 | (3,454 | ) | 231,838 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 123 | — | 151,846 | — | 151,969 | ||||||||||||||||
Clearing and exchange fees | — | — | 6,026 | — | 6,026 | ||||||||||||||||
Communications and technology | 13 | — | 15,867 | — | 15,880 | ||||||||||||||||
Occupancy and equipment costs | — | — | 17,568 | (42 | ) | 17,526 | |||||||||||||||
Interest | 4,375 | (20 | ) | 7,268 | (2,781 | ) | 8,842 | ||||||||||||||
Other | 367 | 18 | 26,583 | (631 | ) | 26,337 | |||||||||||||||
4,878 | (2 | ) | 225,158 | (3,454 | ) | 226,580 | |||||||||||||||
Income (loss) before income taxes | (4,878 | ) | 3,531 | 6,605 | — | 5,258 | |||||||||||||||
Income tax provision (benefit) | (1,720 | ) | 1,277 | 2,677 | — | 2,234 | |||||||||||||||
Net income (loss) for the period | (3,158 | ) | 2,254 | 3,928 | — | 3,024 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 702 | — | 702 | ||||||||||||||||
Equity in subsidiaries | 5,480 | — | — | (5,480 | ) | — | |||||||||||||||
Net income attributable to | $ | 2,322 | $ | 2,254 | $ | 3,226 | $ | (5,480 | ) | $ | 2,322 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income | $ | — | $ | — | $ | 180 | $ | — | $ | 180 | |||||||||||
OPPENHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
REVENUES | |||||||||||||||||||||
Commissions | $ | — | $ | — | $ | 351,487 | $ | — | $ | 351,487 | |||||||||||
Principal transactions, net | — | 728 | 39,659 | — | 40,387 | ||||||||||||||||
Interest | — | 9,203 | 42,370 | (9,111 | ) | 42,462 | |||||||||||||||
Investment banking | — | — | 66,647 | — | 66,647 | ||||||||||||||||
Advisory fees | — | — | 158,683 | (1,887 | ) | 156,796 | |||||||||||||||
Other | — | 126 | 45,420 | (128 | ) | 45,418 | |||||||||||||||
— | 10,057 | 704,266 | (11,126 | ) | 703,197 | ||||||||||||||||
EXPENSES | |||||||||||||||||||||
Compensation and related expenses | 335 | — | 461,181 | — | 461,516 | ||||||||||||||||
Clearing and exchange fees | — | — | 18,046 | — | 18,046 | ||||||||||||||||
Communications and technology | 57 | — | 47,289 | — | 47,346 | ||||||||||||||||
Occupancy and equipment costs | — | — | 59,405 | (126 | ) | 59,279 | |||||||||||||||
Interest | 13,125 | — | 21,851 | (9,112 | ) | 25,864 | |||||||||||||||
Other | 1,139 | 55 | 85,232 | (1,888 | ) | 84,538 | |||||||||||||||
14,656 | 55 | 693,004 | (11,126 | ) | 696,589 | ||||||||||||||||
Income (loss) before income taxes | (14,656 | ) | 10,002 | 11,262 | — | 6,608 | |||||||||||||||
Income tax provision (benefit) | (5,630 | ) | 5,563 | 4,159 | — | 4,092 | |||||||||||||||
Net income (loss) for the period | (9,026 | ) | 4,439 | 7,103 | — | 2,516 | |||||||||||||||
Less net income attributable to non-controlling interest, net of tax | — | — | 2,429 | — | 2,429 | ||||||||||||||||
Equity in subsidiaries | 9,113 | — | — | (9,113 | ) | — | |||||||||||||||
Net income attributable to | $ | 87 | $ | 4,439 | $ | 4,674 | $ | (9,113 | ) | $ | 87 | ||||||||||
Oppenheimer Holdings Inc. | |||||||||||||||||||||
Comprehensive income (loss) | $ | 1 | $ | — | $ | (475 | ) | $ | — | $ | (474 | ) | |||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
OPPNEHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows from operations: | |||||||||||||||||||||
Net income (loss) for the period | $ | (9,425 | ) | $ | 4,809 | $ | 17,083 | $ | — | $ | 12,467 | ||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||||||
Depreciation and amortization | — | — | 7,434 | — | 7,434 | ||||||||||||||||
Deferred income tax | — | — | 13,862 | — | 13,862 | ||||||||||||||||
Amortization of notes receivable | — | — | 14,086 | — | 14,086 | ||||||||||||||||
Amortization of debt issuance costs | 479 | — | — | — | 479 | ||||||||||||||||
Provision for credit losses | — | — | 178 | — | 178 | ||||||||||||||||
Share-based compensation expense | — | — | 3,966 | — | 3,966 | ||||||||||||||||
Changes in operating assets and liabilities | 15,958 | (13,026 | ) | (32,456 | ) | — | (29,524 | ) | |||||||||||||
Cash provided by (used in) continuing operations | 7,012 | (8,217 | ) | 24,153 | — | 22,948 | |||||||||||||||
Cash flows from Investment activities | |||||||||||||||||||||
Purchase of office facilities | — | — | (12,642 | ) | — | (12,642 | ) | ||||||||||||||
Cash used in investing activities | — | — | (12,642 | ) | — | (12,642 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,494 | ) | — | — | — | (4,494 | ) | ||||||||||||||
Issuance of Class A non-voting common stock | 85 | — | — | — | 85 | ||||||||||||||||
Repurchase of Class A non-voting common stock | (2,314 | ) | — | — | — | (2,314 | ) | ||||||||||||||
Tax deficiency from share-based awards | (92 | ) | — | — | — | (92 | ) | ||||||||||||||
Other financing activities | — | — | (33,500 | ) | — | (33,500 | ) | ||||||||||||||
Cash flow used in financing activities | (6,815 | ) | — | (33,500 | ) | — | (40,315 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 197 | (8,217 | ) | (21,989 | ) | — | (30,009 | ) | |||||||||||||
Cash and cash equivalents, beginning of the period | 35 | 40,658 | 94,673 | — | 135,366 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 232 | $ | 32,441 | $ | 72,684 | $ | — | $ | 105,357 | |||||||||||
OPPNEHEIMER HOLDINGS INC. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 | |||||||||||||||||||||
(Expressed in thousands) | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows from operations: | |||||||||||||||||||||
Net income (loss) for the period | $ | (9,026 | ) | $ | 4,439 | $ | 7,103 | $ | — | $ | 2,516 | ||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||||||
Depreciation and amortization | — | — | 8,019 | — | 8,019 | ||||||||||||||||
Deferred income tax | — | — | (8,317 | ) | — | (8,317 | ) | ||||||||||||||
Amortization of notes receivable | — | — | 14,679 | — | 14,679 | ||||||||||||||||
Amortization of debt issuance costs | 479 | — | — | — | 479 | ||||||||||||||||
Amortization of intangible assets | — | — | 3,244 | — | 3,244 | ||||||||||||||||
Provision for credit losses | — | — | (308 | ) | — | (308 | ) | ||||||||||||||
Share-based compensation expense | — | — | 3,030 | — | 3,030 | ||||||||||||||||
Changes in operating assets and liabilities | 12,991 | 6,119 | (67,915 | ) | — | (48,805 | ) | ||||||||||||||
Cash provided by (used in) continuing operations | 4,444 | 10,558 | (40,465 | ) | — | (25,463 | ) | ||||||||||||||
Cash flows from Investment activities | |||||||||||||||||||||
Purchase of office facilities | — | — | -12,390 | — | -12,390 | ||||||||||||||||
Cash used in investing activities | — | — | (12,390 | ) | — | (12,390 | ) | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,489 | ) | — | — | — | (4,489 | ) | ||||||||||||||
Repurchase of Class A non-voting common stock | (1,766 | ) | — | — | — | (1,766 | ) | ||||||||||||||
Tax benefit from share-based compensation | (137 | ) | — | — | — | (137 | ) | ||||||||||||||
Other financing activities | — | — | 67,100 | — | 67,100 | ||||||||||||||||
Cash flow provided by (used in) financing activities | (6,392 | ) | — | 67,100 | — | 60,708 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (1,948 | ) | 10,558 | 14,245 | — | 22,855 | |||||||||||||||
Cash and cash equivalents, beginning of the period | 2,555 | 11,882 | 55,892 | — | 70,329 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 607 | $ | 22,440 | $ | 70,137 | $ | — | $ | 93,184 | |||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | ||
Sep. 28, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Jurisdictions | |||
State | |||
Organization And Basis Of Presentation [Line Items] | ' | ' | ' |
Number of states which operates | ' | 25 | ' |
Number of foreign jurisdiction | ' | 5 | ' |
Company owned OMHHF | ' | 83.68% | ' |
Non-controlling interest | ' | $4,980,000 | $4,261,000 |
Purchase percentage of additional shares of OMHHF | 16.32% | ' | ' |
Purchase of additional shares of OMHHF | $3,000,000 | ' | ' |
United States [Member] | ' | ' | ' |
Organization And Basis Of Presentation [Line Items] | ' | ' | ' |
Number of offices providing services | ' | 96 | ' |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic weighted average number of shares outstanding | 13,604,276 | 13,610,991 | 13,606,527 | 13,599,431 |
Net dilutive effect of warrant, treasury method | ' | ' | ' | ' |
Net dilutive effect of share-based awards, treasury method | 567,526 | 550,266 | 503,604 | 337,585 |
Diluted weighted average number of shares outstanding | 14,171,802 | 14,161,257 | 14,110,131 | 13,937,016 |
Net income for the period | $5,508 | $3,024 | $12,467 | $2,516 |
Net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 |
Net income attributable to Oppenheimer Holdings Inc. | $5,237 | $2,322 | $11,748 | $87 |
Basic earnings per share | $0.38 | $0.17 | $0.86 | $0.01 |
Diluted earnings per share | $0.37 | $0.16 | $0.83 | $0.01 |
Earnings_Per_Share_Summary_of_1
Earnings Per Share - Summary of Earnings Per Share (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Class A Stock [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Number of anti-dilutive warrants, options and restricted shares, for the year | 57,573 | 1,059,638 | 57,573 | 1,059,638 |
CIBC World Markets Corp. [Member] | January 2008 Acquisition [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Period for exercise of warrant | ' | ' | '5 years | ' |
Acquisition date of CIBC World Markets Corp. | ' | ' | 14-Jan-08 | ' |
Warrants expire date | ' | ' | '2013-04-13 | ' |
CIBC World Markets Corp. [Member] | January 2008 Acquisition [Member] | Class A Stock [Member] | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Company issued a warrant to purchase share of Class A Stock | 1,000,000 | ' | 1,000,000 | ' |
Class A Stock exercisable | 48.62 | ' | 48.62 | ' |
Receivable_from_and_Payable_to2
Receivable from and Payable to Brokers, Dealers and Clearing Organizations - Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivable from brokers, dealers and clearing organizations consist of: | ' | ' |
Securities borrowed | $299,037 | $365,642 |
Receivable from brokers | 44,222 | 41,091 |
Securities failed to deliver | 33,649 | 10,031 |
Clearing organizations | 100 | 399 |
Omnibus accounts | 17,524 | 28,212 |
Other | 975 | 34,324 |
Receivables from broker, dealers and clearing organizations | 395,507 | 479,699 |
Payable to brokers, dealers and clearing organizations consist of: | ' | ' |
Securities loaned | 251,751 | 190,387 |
Securities failed to receive | 12,774 | 11,315 |
Clearing organizations and other | 1,418 | 2,516 |
Payable to brokers, dealers and clearing organizations | $265,943 | $204,218 |
Financial_Instruments_Securiti
Financial Instruments - Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | $1,082,469 | $759,742 |
Securities Sold | 243,065 | 173,450 |
U.S. Government, Agency & Sovereign Obligations [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 805,586 | 525,255 |
Securities Sold | 169,795 | 131,930 |
Corporate Debt and Other Obligations [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 29,622 | 14,428 |
Securities Sold | 12,115 | 1,858 |
Mortgage and Other Asset-Backed Securities [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 3,626 | 2,920 |
Securities Sold | 4 | 18 |
Municipal Obligations [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 77,421 | 59,010 |
Securities Sold | 629 | 467 |
Convertible Bonds [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 46,870 | 49,130 |
Securities Sold | 19,618 | 8,868 |
Corporate Equities [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 50,740 | 43,708 |
Securities Sold | 40,663 | 29,884 |
Other [Member] | ' | ' |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' |
Securities Owned | 68,604 | 65,291 |
Securities Sold | $241 | $425 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 26, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Dealer | Deferred Compensation Share Based Payments [Member] | Deferred Compensation Share Based Payments [Member] | Senior Secured Credit Note [Member] | Senior Secured Notes [Member] | Corporate [Member] | Other Than Corporate Customer [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | Reverse Repurchase Agreements [Member] | Reverse Repurchase Agreements [Member] | Securities Borrowed Transactions [Member] | Securities Borrowed Transactions [Member] | Warehouse Facility [Member] | Caps [Member] | Caps [Member] | Caps [Member] | Caps [Member] | Four Major U.S. Broker [Member] | U.S. Treasury Notes Securities [Member] | U.S. Treasury Notes Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | |||
ForwardContracts | Corporate Equities Liabilities [Member] | Corporate Equities Liabilities [Member] | Credit Concentration Risk [Member] | Contract | Fixed Income Investments [Member] | Maximum [Member] | ||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the corporate equities that are included in securities owned | ' | ' | ' | $14,100,000 | $14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company purchased and holds auction rate securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,900,000 | 85,900,000 | ' |
Commitment to purchase ARS from clients through 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,200,000 | 36,200,000 | ' |
Commitment to purchase ARS period maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2016 |
ARS held in proprietary trading account result of the failed auctions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | 150,000 | ' |
Valuation adjustment (unrealized loss) for ARS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,900,000 | 7,900,000 | ' |
Assets and liabilities transferred from level one and level two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Interest rate | ' | ' | ' | ' | ' | ' | 8.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan position held in secondary loan trading portfolio | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the reverse repurchase agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the repurchase agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of interest rate cap contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-12 | ' | 31-Dec-12 | 31-Dec-12 | ' | ' | ' | ' | ' | ' |
Senior Secured Credit Note reference rate description | ' | ' | ' | ' | ' | '3-Month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedges used for asset and liability management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of foreign exchange option outstanding | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of open short contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 468 | ' | ' | ' | ' |
Open short contract, period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Open contracts for Federal Funds futures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,184 | ' | ' | ' | ' |
Open contracts for Federal Funds futures with a fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180,000 | 771,000 | ' | ' | ' |
Forward or delayed delivery of the underlying instrument with settlement | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank call loans | ' | 94,800,000 | 128,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized loans, collateralized by firm | ' | ' | ' | ' | ' | ' | ' | 132,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized loans, collateralized by customer securities | ' | ' | ' | ' | ' | ' | ' | ' | 225,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer securities under customer margin loans available to be pledged | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer securities under customer margin loans agreement available to be repledged | ' | 206,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000,000 | 1,200,000,000 | 34,800,000 | 14,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer securities deposited to secure obligations and margin requirements under option contracts | ' | 335,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities received as collateral under securities borrowed transaction with market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000,000 | 1,200,000,000 | 289,700,000 | 354,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of pledged securities owned that can be sold or re-pledged by the counterparty | ' | 805,400,000 | 570,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of securities owned by the Company loaned or pledged | ' | 133,900,000 | 159,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of first interim distribution | 9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the company's investment on reserves not paid in first distribution | ' | 274,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable from brokers and clearing organizations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 204,900,000 | ' | ' | ' | ' | ' |
Number of broker-dealers | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans to Citizens | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed mortgages for a period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding under the warehouse facility line | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate under warehouse facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $183,000 | $305,000 | $616,000 | $705,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Quantita
Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Detail) (Level 3 [Member], Auction Rate Securities [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Principal | $122,132 |
Valuation Adjustment | 7,917 |
Fair Value | $114,215 |
Valuation Technique | 'Discounted Cash Flow |
Minimum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Discount Rate | 1.10% |
Duration | '4 years |
Current Yield | 0.12% |
Maximum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Discount Rate | 3.21% |
Duration | '7 years |
Current Yield | 1.29% |
Weighted Average [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Discount Rate | 1.59% |
Duration | '4 years 4 months 24 days |
Current Yield | 0.27% |
Financial_Instruments_Quantita1
Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Securities purchases against purchase offers and legal settlement and proprietary position | $85.90 |
Auction Rate Securities [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Commitment to purchase ARS from clients through 2016 | $36.20 |
Financial_Instruments_Investme
Financial Instruments - Investments in Company-Sponsored Funds (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Investment Holdings [Line Items] | ' |
Fair Value | $5,439 |
Unfunded Commitments | 802 |
Hedge Funds [Member] | ' |
Investment Holdings [Line Items] | ' |
Fair Value | 1,777 |
Redemption Frequency | 'Quarterly - Annually |
Redemption Notice Period, Minimum | '30 days |
Redemption Notice Period, Maximum | '120 days |
Private Equity Funds [Member] | ' |
Investment Holdings [Line Items] | ' |
Fair Value | 3,662 |
Unfunded Commitments | $802 |
Financial_Instruments_Assets_a
Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash equivalents | $48,476 | $58,945 |
Securities segregated for regulatory and other purposes | 11,500 | 11,499 |
Deposits with clearing organizations | 9,094 | 9,095 |
Securities owned | ' | ' |
Securities owned, at fair value | 1,082,469 | 759,742 |
Investments | 5,439 | ' |
TBAs | 3,403 | 3,188 |
Total | 1,216,436 | 902,988 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 243,065 | 173,450 |
Investments | 408 | 258 |
Derivative contracts | 3,387 | 3,057 |
TBAs | 536 | 175 |
Total | 247,396 | 176,940 |
Corporate Equities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 50,740 | 43,708 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 40,663 | 29,884 |
Other [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 68,604 | 65,291 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 241 | 425 |
U.S. Treasury Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 774,540 | 497,546 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 164,770 | 131,899 |
U.S. Agency Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 29,233 | 27,690 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 5,025 | 31 |
Sovereign Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 1,813 | 19 |
Corporate Debt and Other Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 29,622 | 14,428 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 12,115 | 1,858 |
Mortgage and Other Asset-Backed Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 3,626 | 2,920 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 4 | 18 |
Municipal Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 77,421 | 59,010 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 629 | 467 |
Convertible Bonds [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 46,870 | 49,130 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 19,618 | 8,868 |
Other [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 68,604 | 65,291 |
Investments Included in Other Assets [Member] | ' | ' |
Securities owned | ' | ' |
Investments | 61,494 | 60,519 |
Level 1 [Member] | ' | ' |
ASSETS | ' | ' |
Cash equivalents | 48,476 | 58,945 |
Securities segregated for regulatory and other purposes | 11,500 | 11,499 |
Deposits with clearing organizations | 9,094 | 9,095 |
Securities owned | ' | ' |
Securities owned, at fair value | 838,394 | 534,291 |
Total | 918,100 | 624,307 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 210,673 | 153,170 |
Investments | 408 | 258 |
Derivative contracts | 771 | 286 |
Total | 211,852 | 153,714 |
Level 1 [Member] | Corporate Equities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 50,740 | 31,958 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 40,663 | 20,946 |
Level 1 [Member] | Other [Member] | ' | ' |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 241 | 325 |
Level 1 [Member] | U.S. Treasury Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 774,540 | 497,546 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 164,770 | 131,899 |
Level 1 [Member] | U.S. Agency Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 11,675 | ' |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 4,999 | ' |
Level 1 [Member] | Corporate Debt and Other Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | ' | 2,459 |
Level 1 [Member] | Other [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 1,439 | 2,328 |
Level 1 [Member] | Investments Included in Other Assets [Member] | ' | ' |
Securities owned | ' | ' |
Investments | 10,636 | 10,477 |
Level 2 [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 163,408 | 153,054 |
TBAs | 3,403 | 3,188 |
Total | 211,543 | 193,330 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 32,392 | 20,180 |
Derivative contracts | 204 | 124 |
TBAs | 536 | 175 |
Total | 33,132 | 20,479 |
Level 2 [Member] | Corporate Equities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | ' | 11,750 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | ' | 8,938 |
Level 2 [Member] | U.S. Agency Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 17,558 | 27,690 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 26 | 31 |
Level 2 [Member] | Sovereign Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 1,813 | 19 |
Level 2 [Member] | Corporate Debt and Other Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 29,622 | 11,969 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 12,115 | 1,858 |
Level 2 [Member] | Mortgage and Other Asset-Backed Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 3,626 | 2,880 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 4 | 18 |
Level 2 [Member] | Municipal Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 63,919 | 49,616 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 629 | 467 |
Level 2 [Member] | Convertible Bonds [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 46,870 | 49,130 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | 19,618 | 8,868 |
Level 2 [Member] | Investments Included in Other Assets [Member] | ' | ' |
Securities owned | ' | ' |
Investments | 44,732 | 37,088 |
Level 3 [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 80,667 | 72,397 |
Total | 86,793 | 85,351 |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | ' | 100 |
Derivative contracts | 2,412 | 2,647 |
Total | 2,412 | 2,747 |
Level 3 [Member] | Other [Member] | ' | ' |
Securities sold, but not yet purchased | ' | ' |
Securities sold, but not yet purchased at fair value | ' | 100 |
Level 3 [Member] | Mortgage and Other Asset-Backed Securities [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | ' | 40 |
Level 3 [Member] | Municipal Obligations [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 13,502 | 9,394 |
Level 3 [Member] | Other [Member] | ' | ' |
Securities owned | ' | ' |
Securities owned, at fair value | 67,165 | 62,963 |
Level 3 [Member] | Investments Included in Other Assets [Member] | ' | ' |
Securities owned | ' | ' |
Investments | $6,126 | $12,954 |
Financial_Instruments_Changes_
Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | $12,974 | $12,760 | $12,954 | $12,482 |
Total Realized and Unrealized Gains (Losses) | -413 | -41 | 210 | 396 |
Purchases and Issuances | 1,000 | 231 | 1,000 | 358 |
Sales and Settlements | -7,435 | -145 | -8,038 | -442 |
Transfers In (Out) | ' | ' | ' | 11 |
Ending Balance | 6,126 | 12,805 | 6,126 | 12,805 |
Other [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 100 | 50 |
Total Realized and Unrealized Gains (Losses) | ' | ' | ' | ' |
Purchases and Issuances | ' | ' | 100 | 50 |
Sales and Settlements | ' | ' | ' | ' |
Transfers In (Out) | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' |
Derivative Contracts [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | 2,329 | 2,334 | 2,647 | 2,347 |
Total Realized and Unrealized Gains (Losses) | -83 | 81 | 235 | 94 |
Ending Balance | 2,412 | 2,253 | 2,412 | 2,253 |
Mortgage and Other Asset-Backed Securities [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | 67 | 12 | 40 | 16 |
Total Realized and Unrealized Gains (Losses) | ' | 3 | ' | -3 |
Purchases and Issuances | ' | 11 | ' | 95 |
Sales and Settlements | -8 | ' | -8 | -80 |
Transfers In (Out) | -59 | ' | -32 | -2 |
Ending Balance | ' | 26 | ' | 26 |
Municipal Obligations [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | 11,569 | 10,120 | 9,394 | 3,562 |
Total Realized and Unrealized Gains (Losses) | -192 | -13 | 733 | -510 |
Purchases and Issuances | 2,275 | 655 | 3,725 | 9,960 |
Sales and Settlements | -150 | -90 | -350 | -2,340 |
Ending Balance | 13,502 | 10,672 | 13,502 | 10,672 |
Other [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Beginning Balance | 66,743 | 64,644 | 62,963 | 65,001 |
Total Realized and Unrealized Gains (Losses) | -53 | 410 | -1,173 | -351 |
Purchases and Issuances | 475 | 5,950 | 9,450 | 20,675 |
Sales and Settlements | ' | -4,625 | -4,075 | -18,946 |
Ending Balance | $67,165 | $66,379 | $67,165 | $66,379 |
Financial_Instruments_Assets_a1
Financial Instruments - Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Cash | $56,881 |
Cash segregated for regulatory and other purposes | 25,069 |
Deposits with clearing organization | 15,960 |
Deposits paid for securities borrowed | 299,037 |
Receivables from brokers | 44,222 |
Securities failed to deliver | 33,649 |
Clearing organizations | 100 |
Omnibus accounts | 17,524 |
Other | 975 |
Total Receivable from brokers and clearing organizations | 395,507 |
Receivable from customers | 873,433 |
Notes receivable | 43,113 |
Mortgage servicing rights (MSRs) | 38,453 |
Mortgage receivable | 65,757 |
Escrow deposit | 25,000 |
Fair Value Measurement Liabilities [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Drafts payable | 36,165 |
Bank call loans | 94,800 |
Deposits received for securities loaned | 251,751 |
Securities failed to receive | 12,774 |
Clearing organizations and other | 1,418 |
Total Payables to brokers and clearing organizations | 265,943 |
Payables to customers | 690,911 |
Securities sold under agreements to repurchase | 630,853 |
Warehouse payable | 49,137 |
Payable to third party | 25,000 |
Senior secured notes | 208,529 |
Carrying Value [Member] | Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Cash | 56,881 |
Cash segregated for regulatory and other purposes | 25,069 |
Deposits with clearing organization | 15,960 |
Deposits paid for securities borrowed | 299,037 |
Receivables from brokers | 44,222 |
Securities failed to deliver | 33,649 |
Clearing organizations | 100 |
Omnibus accounts | 17,524 |
Other | 975 |
Total Receivable from brokers and clearing organizations | 395,507 |
Receivable from customers | 873,433 |
Notes receivable | 43,113 |
Mortgage servicing rights (MSRs) | 28,121 |
Mortgage receivable | 65,757 |
Escrow deposit | 25,000 |
Carrying Value [Member] | Fair Value Measurement Liabilities [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Drafts payable | 36,165 |
Bank call loans | 94,800 |
Deposits received for securities loaned | 251,751 |
Securities failed to receive | 12,774 |
Clearing organizations and other | 1,418 |
Total Payables to brokers and clearing organizations | 265,943 |
Payables to customers | 690,911 |
Securities sold under agreements to repurchase | 630,853 |
Warehouse payable | 49,137 |
Payable to third party | 25,000 |
Senior secured notes | 195,000 |
Fair Value [Member] | Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Cash | 56,881 |
Cash segregated for regulatory and other purposes | 25,069 |
Deposits with clearing organization | 15,960 |
Deposits paid for securities borrowed | 299,037 |
Receivables from brokers | 44,222 |
Securities failed to deliver | 33,649 |
Clearing organizations | 100 |
Omnibus accounts | 17,524 |
Other | 975 |
Total Receivable from brokers and clearing organizations | 395,507 |
Receivable from customers | 873,433 |
Notes receivable | 43,113 |
Mortgage servicing rights (MSRs) | 38,453 |
Mortgage receivable | 65,757 |
Escrow deposit | 25,000 |
Fair Value [Member] | Fair Value Measurement Liabilities [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Drafts payable | 36,165 |
Bank call loans | 94,800 |
Deposits received for securities loaned | 251,751 |
Securities failed to receive | 12,774 |
Clearing organizations and other | 1,418 |
Total Payables to brokers and clearing organizations | 265,943 |
Payables to customers | 690,911 |
Securities sold under agreements to repurchase | 630,853 |
Warehouse payable | 49,137 |
Payable to third party | 25,000 |
Senior secured notes | 208,529 |
Level 1 [Member] | Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Cash | 56,881 |
Cash segregated for regulatory and other purposes | 25,069 |
Deposits with clearing organization | 15,960 |
Escrow deposit | 25,000 |
Level 1 [Member] | Fair Value Measurement Liabilities [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Drafts payable | 36,165 |
Bank call loans | 94,800 |
Payable to third party | 25,000 |
Level 2 [Member] | Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Deposits paid for securities borrowed | 299,037 |
Receivables from brokers | 44,222 |
Securities failed to deliver | 33,649 |
Clearing organizations | 100 |
Omnibus accounts | 17,524 |
Other | 975 |
Total Receivable from brokers and clearing organizations | 395,507 |
Receivable from customers | 873,433 |
Mortgage receivable | 65,757 |
Level 2 [Member] | Fair Value Measurement Liabilities [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Deposits received for securities loaned | 251,751 |
Securities failed to receive | 12,774 |
Clearing organizations and other | 1,418 |
Total Payables to brokers and clearing organizations | 265,943 |
Payables to customers | 690,911 |
Securities sold under agreements to repurchase | 630,853 |
Warehouse payable | 49,137 |
Senior secured notes | 208,529 |
Level 3 [Member] | Fair Value Measurement Assets [Member] | ' |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ' |
Notes receivable | 43,113 |
Mortgage servicing rights (MSRs) | $38,453 |
Financial_Instruments_Notional
Financial Instruments - Notional Amounts and Fair Values of Derivatives by Product (Detail) (Not Designated as Hedging Instrument [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, notional | $6,134,797 | $6,179,343 |
Derivative liability, Fair Value | 3,387 | 3,057 |
Commodity Contracts [Member] | U.S. Treasury Futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, notional | 73,600 | 56,000 |
Derivative liability, Fair Value | 771 | 286 |
Commodity Contracts [Member] | Federal Funds Futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, notional | 5,920,000 | 6,070,000 |
Derivative liability, Fair Value | 180 | 120 |
Commodity Contracts [Member] | Euro Dollars Futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, notional | 105,000 | 15,000 |
Derivative liability, Fair Value | 24 | 4 |
Other Contracts [Member] | ARS Purchase Commitment [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability, notional | 36,197 | 38,343 |
Derivative liability, Fair Value | $2,412 | $2,647 |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | ($544) | ($630) | ($41) | ($1,033) |
Commodity Contracts [Member] | U.S. Treasury Futures [Member] | Principal Transaction Revenue [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | -356 | -395 | 446 | -1,032 |
Commodity Contracts [Member] | Federal Funds Futures [Member] | Principal Transaction Revenue [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | -235 | -334 | -287 | -74 |
Commodity Contracts [Member] | Euro Dollars Futures [Member] | Principal Transaction Revenue [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | -36 | 18 | 35 | -9 |
Other Contracts [Member] | ARS Purchase Commitment [Member] | Principal Transaction Revenue [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 83 | 81 | -235 | 94 |
Interest Rate Contracts [Member] | Caps [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | ' | ' | ' | ($12) |
Financial_Instruments_Fair_Val1
Financial Instruments - Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 |
Subordinated Note [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Subordinated Note due 2014 | 100,000 | 100,000 | ' |
Caps [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Maturity date of interest rate cap contract | 31-Dec-12 | 31-Dec-12 | 31-Dec-12 |
Financial_Instruments_Notional1
Financial Instruments - Notional and Fair Values of TBAs (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Of To Be Announced Securities [Abstract] | ' | ' |
Notional Amount, Sale of TBAs | $381,124 | $449,065 |
Notional Amount, Purchase of TBAs | 42,709 | 117,573 |
Notional Amount, Funding Commitments | 266,273 | 304,390 |
Notional Amount, Total | 308,982 | 421,963 |
Fair Value, Sale of TBAs | 3,403 | 3,188 |
Fair Value, Purchase of TBAs | 536 | 175 |
Fair Value, Funding Commitments | ' | ' |
Fair Value, Total | ' | ' |
Financial_Instruments_Notional2
Financial Instruments - Notional and Fair Values of TBAs (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Of To Be Announced Securities [Abstract] | ' | ' |
FHA loan commitments balance | $266.30 | $304.40 |
Loan receivable balance of OMHHF, included in other assets in balance sheet | $65.80 | $22.90 |
Financial_Instruments_Schedule
Financial Instruments - Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities Financing Transaction [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | $2,867,976 | $1,525,881 |
Gross Amounts Offset in the Statement of Financial Position | 2,568,939 | 1,160,239 |
Net Amounts of Assets Presented on the Balance Sheet | 299,037 | 365,642 |
Financial Instruments | -299,037 | -365,642 |
Cash Collateral Received | ' | ' |
Net Amount | ' | ' |
Gross Amounts of Recognized Liabilities | 3,451,543 | 1,743,017 |
Gross Amounts Offset in the Statement of Financial Position | 2,568,939 | 1,160,239 |
Net Amounts of Liabilities Presented on the Balance Sheet | 882,604 | 582,778 |
Financial Instruments | -882,604 | -582,778 |
Cash Collateral Pledged | ' | ' |
Net Amount | ' | ' |
Repurchase Agreements [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Gross Amounts of Recognized Liabilities | 3,199,792 | 1,552,630 |
Gross Amounts Offset in the Statement of Financial Position | 2,568,939 | 1,160,239 |
Net Amounts of Liabilities Presented on the Balance Sheet | 630,853 | 392,391 |
Financial Instruments | -630,853 | -392,391 |
Cash Collateral Pledged | ' | ' |
Net Amount | ' | ' |
Securities Loaned [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Gross Amounts of Recognized Liabilities | 251,751 | 190,387 |
Net Amounts of Liabilities Presented on the Balance Sheet | 251,751 | 190,387 |
Financial Instruments | -251,751 | -190,387 |
Cash Collateral Pledged | ' | ' |
Net Amount | ' | ' |
Reverse Repurchase Agreements [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 2,568,939 | 1,160,239 |
Gross Amounts Offset in the Statement of Financial Position | 2,568,939 | 1,160,239 |
Cash Collateral Received | ' | ' |
Net Amount | ' | ' |
Securities Borrowed [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 299,037 | 365,642 |
Net Amounts of Assets Presented on the Balance Sheet | 299,037 | 365,642 |
Financial Instruments | -299,037 | -365,642 |
Cash Collateral Received | ' | ' |
Net Amount | ' | ' |
Financial_Instruments_Variable
Financial Instruments - Variable Interest Entities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Total VIE Assets | $2,172,831 | $2,039,347 |
Carrying Value of Variable Interest Assets | 316 | 404 |
Carrying Value of Variable Interest Liabilities | ' | ' |
Capital Commitments | 7 | 8 |
Maximum Exposure to Loss in Non- consolidated VIEs | 323 | 412 |
Hedge Funds [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total VIE Assets | 2,064,368 | 1,868,178 |
Carrying Value of Variable Interest Assets | 284 | 372 |
Carrying Value of Variable Interest Liabilities | ' | ' |
Maximum Exposure to Loss in Non- consolidated VIEs | 284 | 372 |
Private Equity Funds [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total VIE Assets | 108,463 | 171,169 |
Carrying Value of Variable Interest Assets | 32 | 32 |
Carrying Value of Variable Interest Liabilities | ' | ' |
Capital Commitments | 7 | 8 |
Maximum Exposure to Loss in Non- consolidated VIEs | $39 | $40 |
Commercial_Mortgage_Banking_Ad
Commercial Mortgage Banking - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Servicing Liability at Amortized Cost [Line Items] | ' | ' | ' | ' | ' |
Company owned OMHHF | 83.68% | ' | 83.68% | ' | ' |
Prepayment costs | $2.80 | $4.30 | $13.50 | $5.90 | ' |
Custodial escrow accounts | 272.4 | ' | 272.4 | ' | 242.7 |
Uninsured balance relation to escrow accounts | 176.8 | ' | 176.8 | ' | ' |
Servicing rights are amortized using straight-line method | ' | ' | '10 years | ' | ' |
Mortgage Servicing Rights [Member] | ' | ' | ' | ' | ' |
Servicing Liability at Amortized Cost [Line Items] | ' | ' | ' | ' | ' |
Fair value of servicing rights | 38.5 | ' | 38.5 | ' | 33 |
Carrying value of loan servicing rights | $28.10 | ' | $28.10 | ' | $27 |
OMHHF [Member] | ' | ' | ' | ' | ' |
Servicing Liability at Amortized Cost [Line Items] | ' | ' | ' | ' | ' |
Company owned OMHHF | 83.68% | ' | 83.68% | ' | ' |
Non-controlling interest | 16.32% | ' | 16.32% | ' | ' |
Number of related party | ' | ' | 1 | ' | ' |
Commercial_Mortgage_Banking_Su
Commercial Mortgage Banking - Summary of Changes in Carrying Value of Mortgage Servicing Rights (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Transfers And Servicing [Abstract] | ' | ' |
Balance, beginning | $26,983 | $22,795 |
Originations | 5,668 | 4,337 |
Purchases | 1,108 | 2,582 |
Disposals | -4,518 | -450 |
Amortization expense | -1,120 | -2,337 |
Balance, ending | $28,121 | $26,927 |
Commercial_Mortgage_Banking_Sc
Commercial Mortgage Banking - Schedule of Amortization Expense (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Transfers And Servicing [Abstract] | ' |
2013 | $3,538 |
2014 | 3,531 |
2015 | 3,531 |
2016 | 3,498 |
2017 | 3,435 |
Thereafter | 10,588 |
Amortization expense | $28,121 |
Commercial_Mortgage_Banking_Co
Commercial Mortgage Banking - Components of Mortgage Servicing Rights Fees (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Transfers And Servicing [Abstract] | ' | ' | ' | ' |
Servicing fees | $1,287 | $1,080 | $3,739 | $3,016 |
Late fees | 19 | 25 | 94 | 25 |
Ancillary fees | 170 | 128 | 291 | 320 |
Total MSR fees | $1,476 | $1,233 | $4,124 | $3,361 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Senior secured notes | $195,000 | $195,000 |
Senior Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity Date | 15-Apr-18 | ' |
Senior secured notes | $195,000 | $195,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 30, 2011 | Sep. 30, 2013 | Apr. 12, 2011 | Apr. 12, 2011 | Apr. 12, 2011 |
Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Notes [Member] | Senior Secured Credit Note [Member] | Subordinated Note [Member] | Private Placement [Member] | ||
Senior Secured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of private placement, principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 8.75% | ' | ' | 8.75% |
Retirement of notes, principal amount | ' | ' | ' | ' | ' | ' | ' | ' | 22,400,000 | 100,000,000 | ' |
Cost to issue the notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,600,000 |
Term of payments of interest on notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Semi-annually |
Private placement date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Apr-11 |
Repurchase of notes | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' |
Repurchase of notes at cost | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' |
Gain on repurchase notes | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Interest expense on note | ' | 4,300,000 | 4,300,000 | ' | 12,800,000 | 12,800,000 | ' | ' | ' | ' | ' |
Senior notes trading value | ' | ' | ' | ' | ' | ' | ' | 106.94 | ' | ' | ' |
Senior notes base value | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share_Capital_Additional_Infor
Share Capital - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Oct. 07, 2011 |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized | 50,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Preferred stock, issued | 0 | ' | 0 | ' | ' | ' | ' | ' | ' |
Class A Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, authorized | 50,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Common stock, issued | 13,442,759 | ' | 13,442,759 | ' | ' | 13,508,318 | ' | ' | 13,572,265 |
Common stock, outstanding | 13,442,759 | 13,515,012 | 13,442,759 | 13,515,012 | 13,496,783 | 13,508,318 | 13,489,162 | 13,572,265 | 13,572,265 |
Repurchase of class A common stock | ' | ' | ' | ' | ' | ' | ' | ' | 675,000 |
Percentage of repurchase of class A common stock | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Repurchase and cancelled stock | 119,251 | 15,000 | 130,786 | 114,900 | ' | ' | ' | ' | ' |
Total consideration of repurchase and cancelled stock | ' | ' | $2.30 | ' | ' | ' | ' | ' | ' |
Repurchase and cancelled stock per share | ' | ' | $17.69 | ' | ' | ' | ' | ' | ' |
Class B Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, authorized | 99,680 | ' | 99,680 | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Common stock, issued | 99,680 | ' | 99,680 | ' | ' | 99,680 | ' | ' | ' |
Common stock, outstanding | 99,680 | ' | 99,680 | ' | ' | 99,680 | ' | ' | ' |
Share_Capital_Changes_in_Numbe
Share Capital - Changes in Number of Shares of Class A Stock Outstanding (Detail) (Class A Stock [Member]) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 07, 2011 | |
Class A Stock [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Class A Stock outstanding, beginning of period | 13,496,783 | 13,489,162 | 13,508,318 | 13,572,265 | 13,572,265 |
Issued pursuant to shared-based compensation plans | 65,227 | 40,850 | 65,227 | 57,647 | ' |
Repurchased and cancelled pursuant to the stock buy-back | -119,251 | -15,000 | -130,786 | -114,900 | ' |
Class A Stock outstanding, end of period | 13,442,759 | 13,515,012 | 13,442,759 | 13,515,012 | 13,572,265 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended |
Sep. 30, 2013 | Oct. 25, 2013 | |
Subsequent Events [Member] | ||
Loss Contingencies [Line Items] | ' | ' |
Minimum estimated range of aggregate loss for legal proceedings | $0 | ' |
Maximum estimated range of aggregate loss for legal proceedings | 24,000,000 | ' |
Agreed settlement amount | ' | 10,000,000 |
Amount of recovered insurance proceeds | ' | 4,900,000 |
Net amount due under the settlement agreement | ' | 5,100,000 |
Agreed full and final settlement amount | ' | 500,000 |
Litigation expenses | $2,300,000 | ' |
Regulatory_Requirements_Additi
Regulatory Requirements - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Oppenheimer [Member] | Freedom [Member] | Oppenheimer Europe Ltd [Member] | Oppenheimer Investments Asia Ltd. [Member] | |||
Regulatory Capital Requirements [Line Items] | ' | ' | ' | ' | ' | ' |
Required percentage of net capital to aggregate customer-related debit items | ' | ' | 2.00% | ' | ' | ' |
Net capital | ' | ' | $159,000,000 | $4,500,000 | $5,300,000 | $1,300,000 |
Actual percentage of net capital to aggregate customer-related debit items | ' | ' | 12.20% | ' | ' | ' |
Excess capital | ' | ' | 132,800,000 | ' | ' | ' |
Freedom maintain net capital equal to the greater | ' | ' | ' | 250,000 | ' | ' |
Aggregate indebtedness | ' | ' | ' | 6.67% | ' | ' |
Net capital in excess of minimum required | ' | ' | ' | 4,200,000 | 1,900,000 | 905,000 |
Cash and securities segregated for regulatory and other purposes | 36,569,000 | 33,000,000 | 17,400,000 | 18,300,000 | ' | ' |
Regulatory capital required to be maintained | ' | ' | ' | ' | $3,400,000 | $387,000 |
Segment_Information_Reported_R
Segment Information - Reported Revenue and Profit Before Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | ' | ' | ' | ' |
Total revenue | $243,376 | $231,838 | $726,352 | $703,197 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | 8,163 | 5,258 | 20,550 | 6,608 |
Private Client Division [Member] | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Total revenue | 144,316 | 133,798 | 430,963 | 406,530 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | 15,088 | 11,825 | 48,113 | 39,557 |
Asset Management [Member] | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Total revenue | 21,488 | 19,812 | 64,450 | 58,848 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | 6,387 | 4,129 | 20,332 | 13,225 |
Capital Markets [Member] | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Total revenue | 68,460 | 68,587 | 201,495 | 209,477 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | 4,301 | 3,474 | 8,806 | 4,479 |
Commercial Mortgage Banking [Member] | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Total revenue | 9,314 | 8,738 | 26,857 | 27,726 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | 2,823 | 3,155 | 7,977 | 11,985 |
Corporate/Other [Member] | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Total revenue | -202 | 903 | 2,587 | 616 |
Income (loss) before income taxes | ' | ' | ' | ' |
Total income (loss) before income taxes | ($20,436) | ($17,325) | ($64,678) | ($62,638) |
Segment_Information_Reported_R1
Segment Information - Reported Revenue and Profit Before Income Taxes (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Private Client Division [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Asset management fees | 77.50% | 77.50% | 77.50% | 77.50% |
Asset Management [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Asset management fees | 22.50% | 22.50% | 22.50% | 22.50% |
Segment_Information_Revenue_Cl
Segment Information - Revenue Classified by Major Geographic Areas (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | $243,376 | $231,838 | $726,352 | $703,197 |
United States [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 231,777 | 222,226 | 693,251 | 670,339 |
Europe/Middle East [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 9,210 | 7,475 | 26,930 | 26,155 |
Asia [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 1,309 | 332 | 2,843 | 633 |
South America [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | $1,080 | $1,805 | $3,328 | $6,070 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 25, 2013 | |
Subsequent Events [Member] | |||||
Subsequent Events [Line Items] | ' | ' | ' | ' | ' |
Quarterly dividend payable amount per share | $0.11 | $0.11 | $0.33 | $0.33 | $0.11 |
Date of payment of dividend | ' | ' | ' | ' | 22-Nov-13 |
Date of record of dividend | ' | ' | ' | ' | 8-Nov-13 |
Date of announcement of dividend | ' | ' | ' | ' | 25-Oct-13 |
Supplemental_Guarantor_Condens2
Supplemental Guarantor Condensed Consolidated Financial Statements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' |
Interest owned by the holding company | 100.00% |
Supplemental_Guarantor_Condens3
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $105,357 | $135,366 | $93,184 | $70,329 |
Cash and securities segregated for regulatory and other purposes | 36,569 | 33,000 | ' | ' |
Deposits with clearing organizations | 25,054 | 25,954 | ' | ' |
Receivable from brokers and clearing organizations | 395,507 | 479,699 | ' | ' |
Receivable from customers, net of allowance for credit losses | 873,433 | 817,941 | ' | ' |
Income tax receivable | 6,152 | 451 | ' | ' |
Securities owned, including amounts pledged, at fair value | 1,082,469 | 759,742 | ' | ' |
Notes receivable, net | 43,113 | 47,324 | ' | ' |
Office facilities, net | 33,540 | 28,332 | ' | ' |
Deferred tax assets, net | 2,478 | 16,340 | ' | ' |
Intangible assets, net | 31,700 | 31,700 | ' | ' |
Goodwill | 137,889 | 137,889 | ' | ' |
Other | 223,387 | 164,282 | ' | ' |
Total assets | 2,996,648 | 2,678,020 | ' | ' |
Liabilities | ' | ' | ' | ' |
Drafts payable | 36,165 | 56,586 | ' | ' |
Bank call loans | 94,800 | 128,300 | ' | ' |
Payable to brokers and clearing organizations | 265,943 | 204,218 | ' | ' |
Payable to customers | 690,911 | 692,378 | ' | ' |
Securities sold under agreements to repurchase | 630,853 | 392,391 | ' | ' |
Securities sold, but not yet purchased, at fair value | 243,065 | 173,450 | ' | ' |
Accrued compensation | 133,197 | 150,434 | ' | ' |
Accounts payable and other liabilities | 191,441 | 180,262 | ' | ' |
Senior secured notes | 195,000 | 195,000 | ' | ' |
Total liabilities | 2,481,375 | 2,173,019 | ' | ' |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 510,293 | 500,740 | 505,095 | ' |
Noncontrolling interest | 4,980 | 4,261 | ' | ' |
Total equity | 515,273 | 505,001 | 509,023 | ' |
Total liabilities and stockholders' equity | 2,996,648 | 2,678,020 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 232 | 35 | 607 | 2,555 |
Income tax receivable | 18,315 | 13,207 | ' | ' |
Deferred tax assets, net | 470 | -143 | ' | ' |
Other | 3,010 | 3,418 | ' | ' |
Investment in subsidiaries | 529,585 | 506,679 | ' | ' |
Intercompany receivables | 164,214 | 178,743 | ' | ' |
Total assets | 715,826 | 701,939 | ' | ' |
Liabilities | ' | ' | ' | ' |
Accounts payable and other liabilities | 8,093 | 3,759 | ' | ' |
Income tax payable | 2,440 | 2,440 | ' | ' |
Senior secured notes | 195,000 | 195,000 | ' | ' |
Total liabilities | 205,533 | 201,199 | ' | ' |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 510,293 | 500,740 | ' | ' |
Total equity | 510,293 | 500,740 | ' | ' |
Total liabilities and stockholders' equity | 715,826 | 701,939 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 32,441 | 40,658 | 22,440 | 11,882 |
Income tax receivable | 26,657 | 30,568 | ' | ' |
Securities owned, including amounts pledged, at fair value | 2,137 | 2,459 | ' | ' |
Subordinated loan receivable | 112,558 | 112,558 | ' | ' |
Office facilities, net | 21,504 | 15,547 | ' | ' |
Deferred tax assets, net | 309 | 309 | ' | ' |
Other | 26,833 | 1,437 | ' | ' |
Investment in subsidiaries | 892,592 | 880,609 | ' | ' |
Intercompany receivables | -73,818 | -114,449 | ' | ' |
Total assets | 1,041,213 | 969,696 | ' | ' |
Liabilities | ' | ' | ' | ' |
Accounts payable and other liabilities | 57,926 | 43,350 | ' | ' |
Income tax payable | 22,189 | 22,189 | ' | ' |
Deferred tax liabilities, net | ' | -943 | ' | ' |
Intercompany payables | 65,875 | 36,605 | ' | ' |
Total liabilities | 145,990 | 101,201 | ' | ' |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 895,223 | 868,495 | ' | ' |
Total equity | 895,223 | 868,495 | ' | ' |
Total liabilities and stockholders' equity | 1,041,213 | 969,696 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 72,684 | 94,673 | 70,137 | 55,892 |
Cash and securities segregated for regulatory and other purposes | 36,569 | 33,000 | ' | ' |
Deposits with clearing organizations | 25,054 | 25,954 | ' | ' |
Receivable from brokers and clearing organizations | 395,507 | 479,699 | ' | ' |
Receivable from customers, net of allowance for credit losses | 873,433 | 817,941 | ' | ' |
Income tax receivable | -816 | -450 | ' | ' |
Securities owned, including amounts pledged, at fair value | 1,080,332 | 757,283 | ' | ' |
Notes receivable, net | 43,113 | 47,324 | ' | ' |
Office facilities, net | 12,036 | 12,785 | ' | ' |
Deferred tax assets, net | 36,412 | 52,350 | ' | ' |
Intangible assets, net | 31,700 | 31,700 | ' | ' |
Goodwill | 137,889 | 137,889 | ' | ' |
Other | 193,544 | 159,427 | ' | ' |
Investment in subsidiaries | -185,179 | -195,045 | ' | ' |
Intercompany receivables | -24,522 | -27,686 | ' | ' |
Total assets | 2,727,756 | 2,426,844 | ' | ' |
Liabilities | ' | ' | ' | ' |
Drafts payable | 36,165 | 56,586 | ' | ' |
Bank call loans | 94,800 | 128,300 | ' | ' |
Payable to brokers and clearing organizations | 265,943 | 204,218 | ' | ' |
Payable to customers | 690,911 | 692,378 | ' | ' |
Securities sold under agreements to repurchase | 630,853 | 392,391 | ' | ' |
Securities sold, but not yet purchased, at fair value | 243,065 | 173,450 | ' | ' |
Accrued compensation | 133,197 | 150,434 | ' | ' |
Accounts payable and other liabilities | 125,512 | 133,646 | ' | ' |
Income tax payable | 13,376 | 18,687 | ' | ' |
Subordinated indebtedness | 112,558 | 112,558 | ' | ' |
Deferred tax liabilities, net | 34,713 | 36,677 | ' | ' |
Total liabilities | 2,381,093 | 2,099,325 | ' | ' |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 341,683 | 323,258 | ' | ' |
Noncontrolling interest | 4,980 | 4,261 | ' | ' |
Total equity | 346,663 | 327,519 | ' | ' |
Total liabilities and stockholders' equity | 2,727,756 | 2,426,844 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Income tax receivable | -38,004 | -42,874 | ' | ' |
Subordinated loan receivable | -112,558 | -112,558 | ' | ' |
Deferred tax assets, net | -34,713 | -36,176 | ' | ' |
Investment in subsidiaries | -1,236,998 | -1,192,243 | ' | ' |
Intercompany receivables | -65,874 | -36,608 | ' | ' |
Total assets | -1,488,147 | -1,420,459 | ' | ' |
Liabilities | ' | ' | ' | ' |
Accounts payable and other liabilities | -90 | -493 | ' | ' |
Income tax payable | -38,005 | -43,316 | ' | ' |
Subordinated indebtedness | -112,558 | -112,558 | ' | ' |
Deferred tax liabilities, net | -34,713 | -35,734 | ' | ' |
Intercompany payables | -65,875 | -36,605 | ' | ' |
Total liabilities | -251,241 | -228,706 | ' | ' |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | -1,236,906 | -1,191,753 | ' | ' |
Total equity | -1,236,906 | -1,191,753 | ' | ' |
Total liabilities and stockholders' equity | ($1,488,147) | ($1,420,459) | ' | ' |
Supplemental_Guarantor_Condens4
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for credit losses | $2,434 | $2,256 |
Amounts pledged | $805,399 | $569,995 |
Supplemental_Guarantor_Condens5
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES | ' | ' | ' | ' |
Commissions | $120,252 | $113,424 | $364,272 | $351,487 |
Principal transactions, net | 10,347 | 14,372 | 33,596 | 40,387 |
Interest | 14,439 | 14,823 | 39,916 | 42,462 |
Investment banking | 21,362 | 21,589 | 62,377 | 66,647 |
Advisory fees | 60,117 | 53,015 | 177,417 | 156,796 |
Other | 16,859 | 14,615 | 48,774 | 45,418 |
Total revenue | 243,376 | 231,838 | 726,352 | 703,197 |
EXPENSES | ' | ' | ' | ' |
Compensation and related expenses | 161,081 | 151,969 | 480,296 | 461,516 |
Clearing and exchange fees | 6,099 | 6,026 | 18,434 | 18,046 |
Communications and technology | 16,999 | 15,880 | 48,881 | 47,346 |
Occupancy and equipment costs | 16,405 | 17,526 | 51,111 | 59,279 |
Interest | 6,164 | 8,842 | 20,169 | 25,864 |
Other | 28,465 | 26,337 | 86,911 | 84,538 |
Total expenses | 235,213 | 226,580 | 705,802 | 696,589 |
Income (loss) before income taxes | 8,163 | 5,258 | 20,550 | 6,608 |
Income tax provision (benefit) | 2,655 | 2,234 | 8,083 | 4,092 |
Net income (loss) for the period | 5,508 | 3,024 | 12,467 | 2,516 |
Less net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 |
Net income attributable to Oppenheimer Holdings Inc. | 5,237 | 2,322 | 11,748 | 87 |
Comprehensive income (loss) | 656 | 180 | 1,156 | -474 |
Parent [Member] | ' | ' | ' | ' |
REVENUES | ' | ' | ' | ' |
Interest | ' | ' | 5 | ' |
Total revenue | ' | ' | 5 | ' |
EXPENSES | ' | ' | ' | ' |
Compensation and related expenses | 207 | 123 | 902 | 335 |
Communications and technology | 23 | 13 | 81 | 57 |
Interest | 4,375 | 4,375 | 13,125 | 13,125 |
Other | 285 | 367 | 1,045 | 1,139 |
Total expenses | 4,890 | 4,878 | 15,153 | 14,656 |
Income (loss) before income taxes | -4,890 | -4,878 | -15,148 | -14,656 |
Income tax provision (benefit) | -1,792 | -1,720 | -5,723 | -5,630 |
Net income (loss) for the period | -3,098 | -3,158 | -9,425 | -9,026 |
Equity in subsidiaries | 8,335 | 5,480 | 21,173 | 9,113 |
Net income attributable to Oppenheimer Holdings Inc. | 5,237 | 2,322 | 11,748 | 87 |
Comprehensive income (loss) | ' | ' | -3 | 1 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
REVENUES | ' | ' | ' | ' |
Principal transactions, net | 26 | 438 | 38 | 728 |
Interest | 2,777 | 3,049 | 8,370 | 9,203 |
Other | 42 | 42 | 126 | 126 |
Total revenue | 2,845 | 3,529 | 8,534 | 10,057 |
EXPENSES | ' | ' | ' | ' |
Interest | ' | -20 | ' | ' |
Other | 4 | 18 | 23 | 55 |
Total expenses | 4 | -2 | 23 | 55 |
Income (loss) before income taxes | 2,841 | 3,531 | 8,511 | 10,002 |
Income tax provision (benefit) | 1,808 | 1,277 | 3,702 | 5,563 |
Net income (loss) for the period | 1,033 | 2,254 | 4,809 | 4,439 |
Net income attributable to Oppenheimer Holdings Inc. | 1,033 | 2,254 | 4,809 | 4,439 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
REVENUES | ' | ' | ' | ' |
Commissions | 120,252 | 113,424 | 364,272 | 351,487 |
Principal transactions, net | 10,321 | 13,934 | 33,558 | 39,659 |
Interest | 14,805 | 14,554 | 40,119 | 42,370 |
Investment banking | 21,362 | 21,589 | 62,377 | 66,647 |
Advisory fees | 60,650 | 53,645 | 179,137 | 158,683 |
Other | 16,859 | 14,617 | 48,774 | 45,420 |
Total revenue | 244,249 | 231,763 | 728,237 | 704,266 |
EXPENSES | ' | ' | ' | ' |
Compensation and related expenses | 160,874 | 151,846 | 479,394 | 461,181 |
Clearing and exchange fees | 6,099 | 6,026 | 18,434 | 18,046 |
Communications and technology | 16,976 | 15,867 | 48,800 | 47,289 |
Occupancy and equipment costs | 16,447 | 17,568 | 51,237 | 59,405 |
Interest | 4,932 | 7,268 | 15,622 | 21,851 |
Other | 28,709 | 26,583 | 87,563 | 85,232 |
Total expenses | 234,037 | 225,158 | 701,050 | 693,004 |
Income (loss) before income taxes | 10,212 | 6,605 | 27,187 | 11,262 |
Income tax provision (benefit) | 2,639 | 2,677 | 10,104 | 4,159 |
Net income (loss) for the period | 7,573 | 3,928 | 17,083 | 7,103 |
Less net income attributable to non-controlling interest, net of tax | 271 | 702 | 719 | 2,429 |
Net income attributable to Oppenheimer Holdings Inc. | 7,302 | 3,226 | 16,364 | 4,674 |
Comprehensive income (loss) | 656 | 180 | 1,159 | -475 |
Eliminations [Member] | ' | ' | ' | ' |
REVENUES | ' | ' | ' | ' |
Interest | -3,143 | -2,780 | -8,578 | -9,111 |
Advisory fees | -533 | -630 | -1,720 | -1,887 |
Other | -42 | -44 | -126 | -128 |
Total revenue | -3,718 | -3,454 | -10,424 | -11,126 |
EXPENSES | ' | ' | ' | ' |
Occupancy and equipment costs | -42 | -42 | -126 | -126 |
Interest | -3,143 | -2,781 | -8,578 | -9,112 |
Other | -533 | -631 | -1,720 | -1,888 |
Total expenses | -3,718 | -3,454 | -10,424 | -11,126 |
Equity in subsidiaries | -8,335 | -5,480 | -21,173 | -9,113 |
Net income attributable to Oppenheimer Holdings Inc. | ($8,335) | ($5,480) | ($21,173) | ($9,113) |
Supplemental_Guarantor_Condens6
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operations: | ' | ' |
Net income (loss) for the period | $12,467 | $2,516 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 7,434 | 8,019 |
Deferred income tax | 13,862 | -8,317 |
Amortization of notes receivable | 14,086 | 14,679 |
Amortization of debt issuance costs | 479 | 479 |
Amortization of intangible assets | ' | 3,244 |
Provision for credit losses | 178 | -308 |
Share-based compensation expense | 3,966 | 3,030 |
Changes in operating assets and liabilities | -29,524 | -48,805 |
Cash provided by (used in) operating activities | 22,948 | -25,463 |
Cash flows from Investment activities | ' | ' |
Purchase of office facilities | -12,642 | -12,390 |
Cash used in investing activities | -12,642 | -12,390 |
Cash flows from financing activities | ' | ' |
Cash dividends paid on Class A non-voting and Class B voting common stock | -4,494 | -4,489 |
Issuance of Class A non-voting common stock | 85 | ' |
Repurchase of Class A non-voting common stock | -2,314 | -1,766 |
Tax deficiency from share-based awards | -92 | -137 |
Other financing activities | -33,500 | 67,100 |
Cash (used in) provided by financing activities | -40,315 | 60,708 |
Net increase (decrease) in cash and cash equivalents | -30,009 | 22,855 |
Cash and cash equivalents, beginning of period | 135,366 | 70,329 |
Cash and cash equivalents, end of period | 105,357 | 93,184 |
Parent [Member] | ' | ' |
Cash flows from operations: | ' | ' |
Net income (loss) for the period | -9,425 | -9,026 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Amortization of debt issuance costs | 479 | 479 |
Changes in operating assets and liabilities | 15,958 | 12,991 |
Cash provided by (used in) operating activities | 7,012 | 4,444 |
Cash flows from financing activities | ' | ' |
Cash dividends paid on Class A non-voting and Class B voting common stock | -4,494 | -4,489 |
Issuance of Class A non-voting common stock | 85 | ' |
Repurchase of Class A non-voting common stock | -2,314 | -1,766 |
Tax deficiency from share-based awards | -92 | -137 |
Cash (used in) provided by financing activities | -6,815 | -6,392 |
Net increase (decrease) in cash and cash equivalents | 197 | -1,948 |
Cash and cash equivalents, beginning of period | 35 | 2,555 |
Cash and cash equivalents, end of period | 232 | 607 |
Guarantor Subsidiaries [Member] | ' | ' |
Cash flows from operations: | ' | ' |
Net income (loss) for the period | 4,809 | 4,439 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Changes in operating assets and liabilities | -13,026 | 6,119 |
Cash provided by (used in) operating activities | -8,217 | 10,558 |
Cash flows from financing activities | ' | ' |
Net increase (decrease) in cash and cash equivalents | -8,217 | 10,558 |
Cash and cash equivalents, beginning of period | 40,658 | 11,882 |
Cash and cash equivalents, end of period | 32,441 | 22,440 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Cash flows from operations: | ' | ' |
Net income (loss) for the period | 17,083 | 7,103 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 7,434 | 8,019 |
Deferred income tax | 13,862 | -8,317 |
Amortization of notes receivable | 14,086 | 14,679 |
Amortization of intangible assets | ' | 3,244 |
Provision for credit losses | 178 | -308 |
Share-based compensation expense | 3,966 | 3,030 |
Changes in operating assets and liabilities | -32,456 | -67,915 |
Cash provided by (used in) operating activities | 24,153 | -40,465 |
Cash flows from Investment activities | ' | ' |
Purchase of office facilities | -12,642 | -12,390 |
Cash used in investing activities | -12,642 | -12,390 |
Cash flows from financing activities | ' | ' |
Other financing activities | -33,500 | 67,100 |
Cash (used in) provided by financing activities | -33,500 | 67,100 |
Net increase (decrease) in cash and cash equivalents | -21,989 | 14,245 |
Cash and cash equivalents, beginning of period | 94,673 | 55,892 |
Cash and cash equivalents, end of period | $72,684 | $70,137 |