The Company’s business results are categorized into the following ~~four~~4 business segments: Broker-Dealer, Asset Management Fee Income, Investment Income, and Corporate Costs. The Broker-Dealer segment includes a broad range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in M&A, restructuring and other strategic transactions. The Broker-Dealer segment also includes institutional brokerage services and equity research services to our institutional investor clients. The Asset Management Fee Income segment includes the management of a broad range of pooled investment vehicles, including the Company’s hedge funds, private equity funds, hedge funds of funds, and collateralized loan obligations (through March 2019). The Investment Income segment includes income from the Company’s principal investments in public and private securities and investment funds managed by HCS, as well as any other net interest and income from investing activities, and interest expense related to the Company's bond issuance. The Corporate Costs segment also includes expenses related to JMP Group LLC, JMP Holding LLC and JMP Group Inc., and is mainly comprised of corporate overhead expenses.

Management uses operating net income, a Non-GAAP financial measure, as a key metric when evaluating the performance of the Company's core business strategy and ongoing operations. This measure adjusts the Company’s net income as follows: (i) reverses share-based compensation expense recognized during the period, (ii) recognizes 100% of the share-based compensation expense in the period the award was granted, instead of recognizing it over the vesting period as required under GAAP, (iii) reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III prior to March 31, 2019; ~~(iv)~~(iv) unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization; (v) reverses net unrealized gains and losses on strategic equity investments and warrants; (vi) reverses any impairment of CLO debt securities recognized in principal transactions, (vii) reverses ~~one-time~~one-time transaction costs related to the refinancing or repurchase of debt; and (viii) a combined federal, state and local income tax rate of 26% at the consolidated taxable parent company, JMP Group LLC. In management's view of the Company's performance, these charges may obscure the Company’s operating income and complicate an assessment of the Company’s core business activities. The operating pre-tax net income facilitates a meaningful comparison of the Company’s results from period to period.

Discussed below is our Operating Net Income by segment. This information is reflected in a manner utilized by management to assess the financial operations of the Company's various business lines.

20. Nonconsolidated Variable Interest Entities

VIEs for which the Company is not the primary beneficiary consists of private equity funds, CLO investments, and other investments in which the Company has an equity ownership interest. The Company's maximum exposure to loss from its non-consolidated VIEs consists of equity investments and receivables as follows:

(In thousands)	*As of*
	*June 30, 2021*								*December 31, 2020*
	*Financial Statement*				*Maximum*				*Financial Statement*				*Maximum*
	*Carrying Amount*				*Exposure to*				*Carrying Amount*				*Exposure to*
	*Assets*		*Liabilities*		*Loss*		*VIE Assets*		*Assets*		*Liabilities*		*Loss*		*VIE Assets*
CLOs	$	38,849	$	0	$	38,849	$	824,680	$	52,714	$	0	$	52,714	$	1,169,243
Fund investments		13,016		363		15,456		589,145		10,765		311		14,311		465,365
Other investments		756		0		756		1,151,098		4,404		25		4,404		1,172,018
Total	$	52,621	$	363	$	55,061	$	2,564,923	$	67,883	$	336	$	71,429	$	2,806,626

(In thousands)

As of

March 31, 2021

December 31, 2020

Financial Statement

Maximum

Financial Statement

Maximum

Carrying Amount

Exposure to

Carrying Amount

Exposure to

Assets

Liabilities

Loss

VIE Assets

Assets

Liabilities

Loss

VIE Assets

CLOs
$ 52,396 $ - $ 52,396 $ 1,130,360 $ 52,714 $ - $ 52,714 $ 1,169,243
Fund investments 11,831 337 14,988 461,088 10,765 311 14,311 465,365
Other investments 4,479 - 4,479 1,155,724 4,404 25 4,404 1,172,018
Total
$ 68,706 $ 337 $ 71,863 $ 2,747,172 $ 67,883 $ 336 $ 71,429 $ 2,806,626

21. Subsequent Events

On July 30, 2021, the Company received a $23.8 million distribution from Workspace Property Trust LP (“Workspace”) that recently completed a dividend recapitalization. The Company records its equity interest in Workspace using equity method accounting and currently holds its interest at zero.

On July 19, 2021, the Company redeemed $15.0 million par value of its issued and outstanding 2027 Senior Notes.

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the unaudited consolidated financial statements and the related notes included elsewhere in this report. For additional context with which to understand our financial condition and results of operations, see the MD&A for the fiscal year ended December 31, 2020 contained in our Form 10-K for the year ended December 31, 2020,, filed with the Securities and Exchange Commission on March 29, 2021 (the “Annual Report”), as well as the consolidated financial statements and notes contained therein.

Cautionary Statement Regarding Forward-Looking Statements

This MD&A and other sections of this Form 10-Q (the “Quarterly Report”) contain forward looking statements. The Company makes forward-looking statements, as defined by the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and in some cases you can identify these statements by forward-looking words such as “if,” “shall,” “may,” “might,” “will likely result,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “goal,” “objective,” “predict,” “potential” or “continue,” the negative of these terms, and other comparable terminology. These forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events that the Company believes to be reasonable. There are or may be important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the historical or future results, level of activity, performance or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, those discussed under the caption “Risk Factors” in our Annual Report. In preparing this MD&A, the Company presumes that readers have access to and have read the MD&A in our Annual Report, pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K. The Company undertakes no duty to update any of these forward-looking statements after the date of filing of this Quarterly Report to conform such forward-looking statements to actual results or revised expectations, except as otherwise required by law.

Overview

JMP Group LLC, together with its subsidiaries (collectively, the “Company”, “we”, or “us”), is a diversified capital markets firm headquartered in San Francisco, California. We have a diversified business model with a focus on small and middle-market companies and provide:

~~investment banking services, including corporate finance, mergers and acquisitions and other strategic advisory services, to corporate clients;~~

•

investment banking services, including corporate finance, mergers and acquisitions and other strategic advisory services, to corporate clients;

~~sales and trading and related securities brokerage services to institutional investors;~~

•

sales and trading and related securities brokerage services to institutional investors;

~~equity research coverage of three target industries;~~

•

equity research coverage of three target industries;

~~asset management products and services to institutional investors, high net-worth individuals and for our own account; and~~

•

asset management products and services to institutional investors, high net-worth individuals and for our own account; and

~~management of collateralized loan obligations (through March 19, 2019) and a specialty finance company.~~

•

management of collateralized loan obligations (through March 19, 2019) and a specialty finance company.

Operating Results

A summary of the Company’s operating results for the three and six months ended ~~March 31,~~June 30, 2021 and 2020,, is set forth below.

	Three Months Ended March 31,					Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2021		2020			2021		2020		2021		2020

Total net revenues	$	38,493	$	5,267		$	48,492	$	29,993	$	86,985	$	35,260

Net income/(loss) attributable to JMP Group		1,089		(11,748	)		3,628		1,124		4,717		(10,624	)
Net income/(loss) attributable to JMP Group per share		0.05		(0.60	)		0.18		0.06		0.24		(0.54	)

Operating Net Income/(Loss)*		3,784		(537	)		6,129		2,591		9,913		2,054
Operating Net Income/(Loss) per share*		0.18		(0.03	)		0.29		0.13		0.47		0.10

*	Operating Net Income (Loss) is a non-GAAP measure. See the section titled Operating Net Income (Non-GAAP Financial Measure) for more information about this non-GAAP measure, including a reconciliation to net income (loss).

Recent Developments

On January 30, 2020, the spread of novel coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern by the World Health Organization (“WHO”). Subsequently, on March 11, 2020, WHO characterized the COVID-19 outbreak as a pandemic. In March 2020, the U.S. equities market saw sharp declines and extreme volatility in reaction to the COVID-19 pandemic.

In the second quarter of 2020, unprecedented fiscal and monetary stimuli by the U.S. government spurred a sharp recovery in U.S. equity prices. The U.S. equities market continued to recover from the impact of the COVID-19 pandemic during the second half of 2020. The Company's equity capital markets and brokerage revenues directly benefited from the improved capital market condition.

We continue to closely monitor the status of the COVID-19 pandemic and its impact on our business, the economy and capital markets globally. An economic recession could have a material adverse effect on our business, financial condition, results of operations, or cash flows. While we are optimistic that the equity market could remain active through year-end, we cannot reliably estimate the extent to which the COVID-19 pandemic will impact our business in the remainder of 2021 and beyond.

In February 2020, Medalist Partners Corporate Finance LLC ("MPCF") completed the securitization of Medalist Partners Corporate Finance CLO VI Ltd upon which the related CLO VI warehouse was liquidated. The Company does not hold any subordinated notes of Medalist Partners Corporate Finance CLO VI Ltd.

On ~~December 23, 2020,~~June 9, 2021, HCC and Portman Ridge Finance Corporation (“PTMN”) ~~announced that they have entered into~~closed a ~~definitive agreement under~~merger transaction pursuant to which HCC ~~will merge~~merged with and into PTMN, a business development company managed by Sierra Crest Investment Management LLC (“Sierra Crest”), an affiliate of BC Partners Advisors L.P. ~~The parties currently expect~~In connection with the ~~transaction to be completed in~~merger, the ~~second calendar quarter of 2021.~~Company received aggregate consideration totalin g $9.5 million and recorded a realized gain o f $0.1 million. The Company’s ~~partially-owned~~ subsidiary HCAP Advisors ~~provides~~provided investment advisory services to ~~HCC. In addition, the Company had investments~~HCC and in ~~HCC common stock of $8.5 million as of March 31,2021. In~~ connection with the ~~above transaction, HCC stockholders~~merger, Sierra Crest and HCAP Advisors have agreed to a transition services agreement pursuant to which HCAP Advisors will ~~receive aggregate consideration equal~~provide certain consulting services to Sierra Crest relating to HCC’s ~~net asset value at closing. This consideration~~investment portfolio. Under the transition services agreement, HCAP Advisors is expected to earn $3.9 million in total through the three-year period commencing on the merger date.

In June 2021, the Company sold its existing 45.0% ownership interest in Medalist Partners Corporate Finance LLC. The Company received a $1.5 million upfront cash payment, canceled its previous fee-sharing agreement, and entered into a new fee sharing agreement, in which the Company will ~~be funded using PTMN shares (valued at 100% of PTMN’s net asset value per share at the time of closing~~retain an interest to receive 20 basis points of the ~~transaction) and, to the extent the required number~~total 35 basis points in subordinated management fees from JMP Credit Advisors CLO IV Ltd. And JMP Credit Advisors CLO V Ltd. The Company recognized a realized gain of PTMN shares exceeds 19.9% of the issued and outstanding shares of PTMN common stock immediately prior to the transaction closing, cash consideration in the amount of such excess. As described below, HCAP stockholders will have an opportunity, subject to certain limitations, to elect to receive either cash or PTMN shares in consideration for their HCAP shares. Additionally, all HCAP stockholders will receive an additional cash payment from Sierra Crest of $2.15$1.4 million ~~in the aggregate, or approximately $0.36 per share.~~

on this transaction.

Results of Operations

The following table sets forth our results of operations for the three and six months ended ~~March 31,~~June 30, 2021 and 2020, and is not necessarily indicative of the results to be expected for any future period.

(In thousands)	Three Months Ended March 31,						Three Month Change From 2020 to 2021						Three Months Ended June 30,						Six Months Ended June 30,						Three Month Change From 2020 to 2021						Six Month Change From 2020 to 2021
	2021			2020			$			%			2021			2020			2021			2020			$			%			$			%
Revenues
Investment banking	$	32,569		$	14,625		$	17,944			122.7	%	$	32,713		$	21,595		$	65,282		$	36,220		$	11,118			51.5	%	$	29,062			80.2	%
Brokerage		5,905			4,187			1,718			41.0	%		3,391			5,645			9,296			9,832			(2,254	)		-39.9	%		(536	)		-5.5	%
Asset management fees		2,169			1,716			453			26.4	%		11,101			1,712			13,270			3,428			9,389			548.4	%		9,842			287.1	%
Principal transactions		(3,211	)		(17,552	)		14,341			81.7	%		(49	)		(48	)		(3,260	)		(17,600	)		(1	)		2.1	%		14,340			-81.5	%
Net dividend income		-			227			(227	)		-100.0	%		215			10			215			237			205			2050.0	%		(22	)		-9.3	%
Other income		816			935			(119	)		-12.7	%		1,127			912			1,943			1,847			215			23.6	%		96			5.2	%
Non-interest revenues		38,248			4,138			34,110			824.3	%		48,498			29,826			86,746			33,964			18,672			62.6	%		52,782			155.4	%

Interest income		2,101			2,214			(113	)		-5.1	%		1,754			1,890			3,855			4,104			(136	)		-7.2	%		(249	)		-6.1	%
Interest expense		(1,568	)		(1,782	)		214			12.0	%		(1,489	)		(1,723	)		(3,057	)		(3,505	)		234			-13.6	%		448			-12.8	%
Net interest income		533			432			101			23.4	%		265			167			798			599			98			58.7	%		199			33.2	%

(Loss) gain on repurchase, reissuance, or early retirement of debt		(288	)		697			(985	)		-141.3	%		(271	)		-			(559	)		697			(271	)		-100.0	%		(1,256	)		-180.2	%
Total net revenues		38,493			5,267			33,226			630.8	%		48,492			29,993			86,985			35,260			18,499			61.7	%		51,725			146.7	%

Non-interest expenses
Compensation and benefits		29,945			16,213			13,732			84.7	%		35,146			22,386			65,091			38,599			12,760	��		57.0	%		26,492			68.6	%
Administration		1,491			2,222			(731	)		-32.9	%		1,941			1,067			3,432			3,289			874			81.9	%		143			4.3	%
Brokerage, clearing and exchange fees		680			634			46			7.3	%		644			647			1,324			1,281			(3	)		-0.5	%		43			3.4	%
Travel and business development		67			922			(855	)		-92.7	%		215			54			282			976			161			298.1	%		(694	)		-71.1	%
Managed deal expenses		1,398			588			810			137.8	%		1,354			950			2,752			1,538			404			42.5	%		1,214			78.9	%
Communications and technology		1,107			1,129			(22	)		-1.9	%		1,160			1,085			2,267			2,214			75			6.9	%		53			2.4	%
Occupancy		1,198			1,199			(1	)		-0.1	%		1,173			1,194			2,371			2,393			(21	)		-1.8	%		(22	)		-0.9	%
Professional fees		827			890			(63	)		-7.1	%		1,394			731			2,221			1,621			663			90.7	%		600			37.0	%
Depreciation		275			548			(273	)		-49.8	%		265			397			540			945			(132	)		-33.2	%		(405	)		-42.9	%
Other (loss)		(42	)		-			(42	)		-100.0	%		250			208			208			208			42			20.2	%		0			0.0	%
Total non-interest expenses		36,946			24,345			12,601			51.8	%		43,542			28,719			80,488			53,064			14,823			51.6	%		27,424			51.7	%
Net income (loss) before income taxes		1,547			(19,078	)		20,625			-108.1	%		4,950			1,274			6,497			(17,804	)		3,676			288.5	%		24,301			-136.5	%
Income tax expense (benefit)		379			(7,239	)		7,618			-105.2	%		1,307			176			1,686			(7,063	)		1,131			642.6	%		8,749			-123.9	%
Net income (loss)		1,168			(11,839	)		13,007			-109.9	%		3,643			1,098			4,811			(10,741	)		2,545			231.8	%		15,552			-144.8	%
Less: Net income (loss) attributable to non-controlling interest		79			(91	)		170			-186.8	%		15			(26	)		94			(117	)		41			-157.7	%		211			-180.3	%
Net income (loss) attributable to JMP Group LLC	$	1,089		$	(11,748	)	$	12,837			-109.3	%	$	3,628		$	1,124		$	4,717		$	(10,624	)	$	2,504			222.8	%	$	15,341			-144.4	%

Operating Net Income (Non-GAAP Financial Measure)

Management uses Operating Net Income as a key, non-GAAP metric when evaluating the performance of JMP Group LLC’s core business strategy and ongoing operations, as management believes that this metric appropriately illustrates the operating results of JMP Group LLC’s core operations and business activities. Operating Net Income is derived from our segment reported results and is the measure of segment profitability on an after-tax basis used by management to evaluate our performance. This non-GAAP measure is presented to enhance investors’ overall understanding of the Company’s current financial performance. Additionally, management believes that Operating Net Income is a useful measure because it allows for a better evaluation of the performance of JMP Group LLC’s ongoing business and facilitates a meaningful comparison of the Company’s results in a given period to those in prior and future periods.

However, Operating Net Income should not be considered a substitute for results that are presented in a manner consistent with GAAP. A limitation of the non-GAAP financial measures presented is that, unless otherwise indicated, the adjustments concern gains, losses or expenses that JMP Group LLC generally expects to continue to recognize, and the adjustment of these items should not always be construed as an inference that these gains or expenses are unusual, infrequent or non-recurring. Therefore, management believes that both JMP Group LLC’s GAAP measures of its financial performance and the respective non-GAAP measures should be considered together. Operating Net Income may not be comparable to a similarly titled measure presented by other companies.

Operating Net Income is a non-GAAP financial measure that adjusts the Company’s GAAP net income as follows:

	(i)	reverses compensation expense recognized under GAAP related to equity awards;

	(ii)	recognizes 100% of the cost of deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, in order to match compensation expense with the actual period upon which the compensation was based;

	~~(ii)~~(iii)	~~recognizes 100%~~reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the ~~cost~~equity of ~~deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, in order~~CLO III prior to ~~match compensation expense with the actual period upon which the compensation was based;~~March 31, 2019;

	~~(iii)~~(iv)	~~reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III prior to March 31, 2019;~~unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization;

	~~(iv)~~(v)	reverses net unrealized gains orand losses on ~~commercial real estate~~strategic equity investments ~~adjusted for non-cash expenditures, including depreciation~~ and ~~amortization;~~warrant positions;

	~~(v)~~(vi)	reverses impairment of CLO debt securities recognized in principal transaction revenues, as the Company believes that the forecasted reduction in future cash flows will be mitigated by a change in the interest rate environment and that distributions will be larger than currently projected;

	(vii)	reverses ~~net unrealized gains and losses on strategic equity investments and warrant positions;~~the one-time transaction costs related to the refinancing or repurchase of the debt;

	~~(vi)~~	reverses impairment of CLO debt securities recognized in principal transaction revenues, as the Company believes that the forecasted reduction in future cash flows will be mitigated by a change in the interest rate environment and that distributions will be larger than currently projected;

	~~(vii)~~(viii)	~~reverses~~includes a combined federal, state and local income tax rate of 26% at the ~~one-time transaction costs related to the refinancing or repurchase of the debt;~~consolidated taxable parent company, JMP Group LLC;

	~~(viii)~~	~~includes a combined federal, state and local income tax rate of 26% at the consolidated taxable parent company, JMP Group LLC;~~

	(ix)	removes any non-controlling interest in consolidated but less than wholly owned subsidiaries; and

2933

Discussed below is our Operating Net Income by segment. This information is reflected in a manner utilized by management to assess the financial operations of the Company’s various business lines.

	Three Months Ended March 31, 2021																		Three Months Ended June 30, 2021
(In thousands)	Broker-Dealer			Asset Management							Corporate Costs			Eliminations			Total Segments		Broker-Dealer		Asset Management						Corporate Costs			Eliminations			Total Segments
				Asset Management Fee Income			Investment Income		Total Asset Management												Asset Management Fee Income		Investment Income		Total Asset Management
Revenues
Investment banking	$	32,569		$	-		$	-	$	-	$	-		$	-		$	32,569	$	32,713	$	-	$	-	$	-	$	-		$	-		$	32,713
Brokerage		5,905			-			-		-		-			-			5,905		3,391		-		-		-		-			-			3,391
Asset management related fees		21			2,174			352		2,526		-			(25	)		2,522		93		11,628		491		12,119		-			(25	)		12,187
Principal transactions		(444	)		-			1,110		1,110		-			-			666		167		-		3,086		3,086		-			-			3,253
Net interest income		-			-			558		558		-			-			558		-		-		290		290		-			-			290
Net dividend income																				-		-		215		215		-			-			215
Adjusted net revenues		38,051			2,174			2,020		4,194		-			(25	)		42,220		36,364		11,628		4,082		15,710		-			(25	)		52,049

Non-interest expenses		32,308			2,207			297		2,504		2,320			(25	)		37,107		31,970		8,940		352		9,292		2,529			(25	)		43,766

Operating pre-tax net income (loss)		5,743			(33	)		1,723		1,690		(2,320	)		-			5,113		4,394		2,688		3,730		6,418		(2,529	)		-			8,283

Income tax expense (benefit)		1,493			(8	)		447		439		(603	)		-			1,329		1,142		699		971		1,670		(658	)		-			2,154

Operating net income (loss)	$	4,250		$	(25	)	$	1,276	$	1,251	$	(1,717	)	$	-		$	3,784	$	3,252	$	1,989	$	2,759	$	4,748	$	(1,871	)	$	-		$	6,129

	Three Months Ended March 31, 2020																			Three Months Ended June 30, 2020
(In thousands)	Broker-Dealer			Asset Management							Corporate Costs			Eliminations			Total Segments			Broker-Dealer		Asset Management							Corporate Costs			Eliminations			Total Segments
				Asset Management Fee Income			Investment Income		Total Asset Management													Asset Management Fee Income			Investment Income		Total Asset Management
Revenues
Investment banking	$	14,625		$	-		$	-	$	-	$	-		$	-		$	14,625		$	21,595	$	-		$	-	$	-	$	-		$	-		$	21,595
Brokerage		4,187			-			-		-		-			-			4,187			5,645		-			-		-		-			-			5,645
Asset management related fees		152			1,903			333		2,236		-			(45	)		2,343			7		1,941			379		2,320		-			(42	)		2,285
Principal transactions		-			-			81		81		-			-			81			458		-			1,809		1,809		-			-			2,267
Net dividend income		-			-			256		256		-			-			256			-		-			49		49		-			-			49
Net interest income		-			-			458		458		-			-			458			-		-			192		192		-			-			192
Gain on repurchase, reissuance or early retirement of debt		-			-			786		786		-			-			786
Adjusted net revenues		18,964			1,903			1,914		3,817		-			(45	)		22,736			27,705		1,941			2,429		4,370		-			(42	)		32,033

Non-interest expenses		19,201			2,362			151		2,513		1,792			(45	)		23,461			24,045		2,144			303		2,447		2,082			(42	)		28,532

Operating pre-tax net income (loss)		(237	)		(459	)		1,763		1,304		(1,792	)		-			(725	)		3,660		(203	)		2,126		1,923		(2,082	)		-			3,501

Income tax expense (benefit)		(62	)		(120	)		459		339		(465	)		-			(188	)		951		(53	)		553		500		(541	)		-			910

Operating net income (loss)	$	(175	)	$	(339	)	$	1,304	$	965	$	(1,327	)	$	-		$	(537	)	$	2,709	$	(150	)	$	1,573	$	1,423	$	(1,541	)	$	-		$	2,591

	Six Months Ended June 30, 2021
(In thousands)	Broker-Dealer			Asset Management						Corporate Costs			Eliminations			Total Segments
				Asset Management Fee Income		Investment Income		Total Asset Management
Revenues
Investment banking	$	65,282		$	-	$	-	$	-	$	-		$	-		$	65,282
Brokerage		9,296			-		-		-		-			-			9,296
Asset management related fees		114			13,802		843		14,645		-			(50	)		14,709
Principal transactions		(277	)		-		4,196		4,196		-			-			3,919
Net interest income		-			-		848		848		-			-			848
Net dividend income		-			-		215		215		-			-			215
Adjusted net revenues		74,415			13,802		6,102		19,904		-			(50	)		94,269

Non-interest expenses		64,278			11,147		649		11,796		4,849			(50	)		80,873

Operating pre-tax net income (loss)		10,137			2,655		5,453		8,108		(4,849	)		-			13,396

Income tax expense (benefit)		2,635			691		1,418		2,109		(1,261	)		-			3,483

Operating net income (loss)	$	7,502		$	1,964	$	4,035	$	5,999	$	(3,588	)	$	-		$	9,913

	Six Months Ended June 30, 2020
(In thousands)	Broker-Dealer		Asset Management							Corporate Costs			Eliminations			Total Segments
			Asset Management Fee Income			Investment Income		Total Asset Management
Revenues
Investment banking	$	36,220	$	-		$	-	$	-	$	-		$	-		$	36,220
Brokerage		9,832		-			-		-		-			-			9,832
Asset management related fees		159		3,844			712		4,556		-			(87	)		4,628
Principal transactions		487		-			1,861		1,861		-			-			2,348
Net dividend income		-		-			305		305		-			-			305
Net interest income		-		-			650		650		-			-			650
Gain on repurchase, reissuance or early retirement of debt		-		-			786		786		-			-			786
Adjusted net revenues		46,698		3,844			4,314		8,158		-			(87	)		54,769

Non-interest expenses		43,246		4,506			454		4,960		3,874			(87	)		51,993

Operating pre-tax net income (loss)		3,452		(662	)		3,860		3,198		(3,874	)		-			2,776

Income tax expense (benefit)		889		(173	)		1,012		839		(1,007	)		-			721

Operating net income (loss)	$	2,563	$	(489	)	$	2,848	$	2,359	$	(2,867	)	$	-		$	2,055

The following table reconciles consolidated net income (loss) attributable to JMP Group LLC to total Operating Net Income (Loss) for the three and six months ended ~~March 31,~~June 30, 2021 and 2020.

(In thousands)	Three Months Ended March 31,						Three Months Ended June 30,
	2021			2020			2021			2020
Consolidated net income (loss) attributable to JMP Group LLC	$	1,089		$	(11,748	)	$	3,628		$	1,124
Income tax expense (benefit)		379			(7,239	)		1,307			176
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	1,468		$	(18,987	)	$	4,935		$	1,300
Addback (subtract)
Subtract (addback)
Share-based awards and deferred compensation		521			(546	)		225			130
Early retirement/repurchase of debt		(288	)		(89	)		(271	)		-
Impairment – CLO equity		(4,587	)		(13,523	)		(3,711	)		(1,013	)
Unrealized loss – real estate-related depreciation and amortization		(371	)		(338	)		(492	)		(516	)
Unrealized mark-to-market loss -strategic equity investments		1,080			(3,766	)		901			(802	)
Total Consolidation Adjustments and Reconciling Items		(3,645	)		(18,262	)		(3,348	)		(2,201	)
Total segments operating pre-tax net income (loss)	$	5,113		$	(725	)	$	8,283		$	3,501

Subtract (addback) segment income tax expense (benefit)		1,329			(188	)		2,154			910
Operating Net Income (Loss)	$	3,784		$	(537	)	$	6,129		$	2,591

(In thousands)	Six Months Ended June 30,
	2021			2020
Consolidated net income (loss) attributable to JMP Group LLC	$	4,717		$	(10,625	)
Income tax expense (benefit)		1,686			(7,063	)
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	6,403		$	(17,688	)
Subtract (addback)
Share-based awards and deferred compensation		746			(416	)
Early retirement/repurchase of debt		(559	)		(89	)
Impairment – CLO equity		(8,298	)		(14,537	)
Unrealized loss – real estate-related depreciation and amortization		(863	)		(854	)
Unrealized mark-to-market loss -strategic equity investments		1,981			(4,568	)
Total Consolidation Adjustments and Reconciling Items		(6,993	)		(20,464	)
Total segments operating pre-tax net income (loss)	$	13,396		$	2,776

Subtract (addback) segment income tax expense (benefit)		3,483			722
Operating Net Income (Loss)	$	9,913		$	2,055

3136

Three Months Ended ~~March 31,~~June 30, 2021 Compared to Three Months Ended ~~March 31,~~June 30, 2020

Revenues

Investment Banking

Investment banking revenues, earned in our Broker-Dealer segment, increased ~~$17.9~~ $11.1 million, or ~~122.7%~~51.5%, from ~~$14.6~~$21.6 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$32.6~~$32.7 million for the same period in ~~2021~~.2021. As a percentage of total net revenues after provision for loan losses, investment banking revenues decreased from ~~277.7%~~72.0% for the quarter ended ~~March 31,~~June 30, 2020 to ~~84.6%~~67.5% for the quarter ended ~~March 31,~~June 30, 2021. On an operating basis, investment banking revenues were ~~77.1%~~62.9% and ~~64.3%~~67.4% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively, as a percentage of adjusted net revenues.

(Dollars in thousands)	Three Months Ended March 31,								Change from 2021 to 2020							Three Months Ended June 30,								Change from 2021 to 2020
	2021				2020											2021				2020
	Count		Revenues		Count		Revenues		Count		$		%			Count		Revenues		Count		Revenues		Count		$		%
Equity and debt origination		41	$	25,670		17	$	8,556		24	$	17,114		200.0	%		34	$	16,946		22	$	14,569		12	$	2,377		16.3	%
Strategic advisory and private placements		6		6,900		4		6,069		2	$	831		13.7	%		11		15,767		5		7,026		6	$	8,741		124.4	%
Total		47	$	32,570		21	$	14,625		26	$	17,945		122.7	%		45	$	32,713		27	$	21,594.52		18	$	11,118		51.5	%

The increase in revenues was driven by a ~~200%~~124.4% increase in ~~equity and debt origination revenues as JMP executed 41 deals in the three months ended~~ ~~March 31, 2021~~ ~~compared to 17 for the same period in~~ ~~2020, in addition to a 13.7% increase in strategic~~Strategic advisory and private placements revenues~~. The~~ as the number of transactions in which we acted as a bookrunning manager was ~~five~~4 in the three months ended June 30, 2021 compared to zero for the quarter ended June 30, 2020, in addition to a 16.3% increase in Equity and ~~two~~debt origination revenues. JMP executed 34 and 22 deals for the quarters ended ~~March 31,~~June 30, 2021 and 2020,, respectively.

Brokerage Revenues

Brokerage revenues earned in our Broker-Dealer segment ~~increased $1.7~~decreased $2.3 million from ~~$4.2~~$5.6 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$5.9~~$3.4 million for the quarter ended ~~March 31, 2021~~.June 30, 2021. Brokerage revenues decreased as a percentage of total net revenues, from ~~79.5%~~18.8% for the quarter ended ~~March 31,~~June 30, 2020 to ~~15.3%~~7.0% for the quarter ended ~~March 31,~~June 30, 2021. On an operating basis, brokerage revenues were ~~14.0%~~6.5% and ~~18.4%~~17.6% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively, as a percentage of adjusted net revenues.

Asset Management Fees

(In thousands)	Three Months Ended March 31,						Three Months Ended June 30,
	2021			2020			2021			2020
Asset management related fees:
Fees reported as asset management fees	$	2,169		$	1,716		$	11,101		$	1,712
Fees reported as other income		816			935			1,127			912
Less: Non-controlling interests in HCAP Advisors		(463	)		(308	)
Less: Non-controlling interests								(41	)		(339	)
Total segment asset management related fee revenues	$	2,522		$	2,343		$	12,187		$	2,285

Fees reported as asset management fees were ~~$2.2~~$11.1 million and $1.7 million for the quarters ended ~~March 31,~~June 30, 2021 and 2020,, respectively. As a percentage of total net revenues, asset management revenues ~~decreased~~increased from ~~32.6%~~5.7% for the quarter ended ~~March 31,~~June 30, 2020 to ~~5.6%~~22.9% for the quarter ended ~~March 31,~~June 30, 2021,. predominantly due to an increase in incentive fees earned of $9.8 million.

Total segment asset management-related fees include base management fees and incentive fees from our assets under management, as well as other income from fee-sharing arrangements with, and fees earned to raise capital for, third-party or equity-method investment partnerships or funds. Total segment asset management-related fee revenues are reconciled to the GAAP measure, total asset management fee revenues, in the table above. We believe that presenting operating asset management-related fees is useful to investors as a means of assessing the performance of our combined asset management activities, including fundraising and other services for third parties. We also believe that asset management-related fee revenue is a more meaningful measure than standalone asset management fees as reported, because asset management-related fee revenues represent the combined impact of the various asset management activities on the Company’s total net revenues.

Total segment asset management related fee revenue increased ~~$0.2~~$9.9 million from $2.3 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$2.5~~$12.2 million for the quarter ended ~~March 31,~~June 30, 2021. On an operating basis, asset management related fee revenues were ~~6.0%~~23.4% and ~~10.3%~~7.1% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively, as a percentage of total net revenues.

The following table presents a summary of the Company’s client assets under management with respect to the assets managed by HCS, JMP Asset Management LLC (“JMPAM”), HCAP Advisors LLC (“HCAP Advisors”) and assets managed by sponsored funds:

(In thousands)	Client Assets Under Management at				Client Assets Under Management at
	March 31,		December 31,		June 30,		December 31,
	2021		2020		2021		2020
Client Assets Managed by HCS, JMPAM, and HCAP Advisors (1)	$	694,088	$	659,695	$	629,569	$	659,695
Client Assets Under Management by Sponsored Funds (2)		4,825,139		4,933,913		3,403,166		4,933,913

JMP Group LLC total client assets under management	$	5,519,227	$	5,593,608	$	4,032,735	$	5,593,608

(1)	For HCS, JMPAM, and HCAP Advisors, client assets under management represent the net assets of such funds or the commitment amount. As of June 30, 2021, HCAP Advisors LLC no longer has assets under management.
(2)	Sponsored funds are third-party asset managers in which the Company owns an economic interest. As of June 30, 2021, Sponsored Funds no longer include CLOs and CLO warehouse assets managed by Medalist Partners Corporate Finance.

Principal Transactions

Principal transaction revenues ~~increased $14.3 million~~remained consistent from a ~~loss of $17.5 million~~break-even for the quarter ended ~~March 31,~~June 30, 2020 to a ~~loss of $3.2 million~~break-even for the same period in 2021. ~~This increase was primarily driven by a $4.6 million impairment loss on CLO debt securities for the quarter ended~~ ~~March 31, 2021~~ ~~compared to the loss for the quarter ended~~ ~~March 31, 2020~~ ~~of $13.5 million.~~

Total segment principal transaction revenues increased from ~~$0.1~~$2.3 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$0.7~~$3.3 million for the same period in ~~2021~~. 2021. Total segment principal transaction revenues are a non-GAAP financial measure that aggregates our segment reported principal transaction revenues across each segment. The principal transaction revenues for both 2021 and 2020 were included in our Investment Income segment. Total segment principal transaction revenues are reconciled to the GAAP measure, total principal transaction revenues, in the table below. See the Operating Net Income section above for additional information on the adjustments made to arrive at the non-GAAP measure and why management believes that this non-GAAP number is useful and important to the users of these financial statements.

(In thousands)	Three Months Ended March 31,						Three Months Ended June 30,
	2021			2020			2021			2020

Equity and other securities	$	(111	)	$	(824	)	$	957		$	333
Warrants and other investments		264			907			2,296			1,414
Investment partnerships		513			(2	)		-			520
Total segment principal transaction revenues		666			81			3,253			2,267
Operating adjustment addbacks		(3,877	)		(17,633	)		(3,302	)		(2,315	)
Total principal transaction revenues	$	(3,211	)	$	(17,552	)	$	(49	)	$	(48	)

On an operating basis, as a percentage of adjusted net revenues, principal transaction revenues ~~increased~~decreased from ~~0.4%~~7.1% for the quarter ended ~~March 31,~~June 30, 2020 to ~~1.6%~~6.2% for the quarter ended ~~March 31,~~June 30, 2021.

Net Interest Income/Expense

Net interest income increased $0.1 million from ~~$0.4~~$0.2 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$0.5~~$0.3 million for the quarter ended ~~March 31, 2021~~June 30, 2021. As a percentage of total net revenues, net interest income was ~~8.2%~~0.6% for the quarter ended ~~March 31,~~June 30, 2020 and ~~1.4%~~0.5% for the quarter ended ~~March 31, 2021~~.June 30, 2021.

Total segment net interest income increased $0.1 million from ~~$0.5~~$0.2 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$0.6~~$0.3 million for the quarter ended ~~March 31,~~June 30, 2021. Net interest income is earned in our Investment Income segment. Total segment net interest income reflects the effective yield of the Company's ownership of subordinated notes in CLO III, CLO IV, and CLO V, net of bond interest expense. Total segment net interest income is reconciled to the GAAP measure, total net interest income, in the table above. As a percentage of total adjusted net revenues, net interest income was ~~2.0%~~0.6% for the quarter ended ~~March 31,~~June 30, 2020 and ~~1.3%~~0.6% for the quarter ended ~~March 31,~~June 30, 2021.

Expenses

Non-Interest Expenses

Compensation and Benefits

Compensation and benefits, which includes employee payroll, taxes and benefits, performance-based cash bonus and commissions, as well as equity-based compensation to our employees and managing directors, increased ~~$13.7~~$12.8 million, or ~~84.7%~~57.0%, from ~~$16.2~~$22.4 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$29.9~~$35.1 million for the quarter ended ~~March 31, 2021~~.June 30, 2021.

Compensation and benefits as a percentage of revenues decreased from ~~307.8%~~74.6% of total net revenues for the quarter ended ~~March 31,~~June 30, 2020 to ~~77.8%~~72.5% for the quarter ended ~~March 31,~~June 30, 2021.

Administration

Administration expense ~~decreased $0.7~~increased $0.9 million from ~~$2.2~~$1.1 million for the quarter ended ~~March 31,~~June 30, 2020 to ~~$1.5~~$1.9 million for the quarter ended ~~March 31, 2021~~.June 30, 2021. As a percentage of total net revenues, administration expense was ~~3.9%~~4.0% and ~~42.2%~~3.6% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively.

Travel and Business Development

Travel and business development expense was ~~$0.1~~$0.2 million and ~~$0.9~~$0.1 million for the quarters ended ~~March 31,~~June 30, 2021 and 2020,, respectively. As a percentage of total net revenues, travel and business development expense was ~~0.2%~~0.4% and ~~17.5%~~0.2% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively.

Communications and Technology

Communications and technology expense was $1.2 million and $1.1 million for ~~both of~~ the quarters ended ~~March 31,~~June 30, 2021 and 2020. As a percentage of total net revenues, communications and technology expense was ~~2.9%~~2.4% and ~~21.4%~~3.6% for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively.

Occupancy

Occupancy expenses was $1.2 million for both of the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively. As a percentage of total net revenues, occupancy expenses were ~~3.1%~~2.4% and ~~22.8%~~4.0% for the quarters ended ~~March 31,~~June 30, 2021 and 2020,, respectively.

Provision for Income Taxes

Income tax expense was ~~$0.4~~$1.3 million and ~~$7.2~~$0.1 million ~~benefit~~ for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively. The Company's tax ~~benefit de~~expense increased for the quarter ended ~~March 31,~~June 30, 2021 from ~~March 31,~~June 30, 2020 due to an increase from net ~~income from 2020 to 2021.~~income.

~~Beginning~~On January 1, 2019, the Company elected to be treated as a C corporation for tax purposes, rather than a partnership, going forward.

For GAAP reporting purposes, the Company’s effective tax rate used for the interim periods is based on the estimated full-year income tax rate. The effective tax rate differs from the statutory rate primarily due to the net operating loss carryback that was created in prior year which was subsequently carried back to offset years with taxable income that was derived from a different corporate tax rate.

Segment income tax was a ~~$1.3~~$2.2 million expense and ~~$0.2~~$0.9 million ~~benefit~~expense for the quarters ended ~~March 31,~~June 30, 2021 and 2020, respectively.

For segment reporting purposes, an effective tax rate of 26% was assumed for the three months ended ~~March 31,~~June 30, 2021 and 2020 based on our best estimation of the subsidiary’s average rate of taxation over the long term.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in response to market conditions related to the coronavirus (COVID-19) pandemic. The CARES Act includes many measures to help companies, including changes that are temporary and non-income based tax laws, some of which were part of the Tax Cuts and Jobs Act (TCJA). The Company has made reasonable assessments in accounting for certain effects of the CARES Act that was passed. However, the provisional impacts may be refined over the prescribed measurement period.

The Company recognizes deferred tax assets and liabilities in accordance with ASC 740, Income Taxes, and are determined based upon the temporary differences between the financial reporting and tax basis of the Company’s assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse.

3540

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020

Revenues

Investment Banking

Investment banking revenues, earned in our Broker-Dealer segment, increased $29.1 million, or 80.2%, from $36.2 million for the six months ended June 30, 2020 to $65.3 million for the same period in 2021. As a percentage of total net revenues after provision for loan losses, investment banking revenues decreased from 102.7% for the six months ended June 30, 2020 to 75.0% for the six months ended June 30, 2021. On an operating basis, investment banking revenues were 69.3% and 66.1% for the six months ended June 30, 2021 and 2020, respectively, as a percentage of adjusted net revenues.

(Dollars in thousands)	Six Months Ended June 30,								Change from 2021 to 2020
	2021				2020
	Count		Revenues		Count		Revenues		Count		$		%
Equity and debt origination		75	$	42,615		39	$	23,125		36	$	19,490		84.3	%
Strategic advisory and private placements		17		22,667		9		13,095		8	$	9,572		73.1	%
Total		92	$	65,282		48	$	36,220		44	$	29,062		80.2	%

The increase in revenues was driven by an 84.3% increase in equity and debt origination revenues as JMP executed 75 deals in the six months ended June 30, 2021 compared to 39 for the same period in 2020, in addition to a 73.1% increase in strategic advisory and private placements revenues. The number of transactions in which we acted as a bookrunning manager was 9 and 2 for the six months ended June 30, 2021 and 2020, respectively.

Brokerage Revenues

Brokerage revenues earned in our Broker-Dealer segment decreased $0.5 million from $9.8 million for the six months ended June 30, 2020 to $9.3 million for the six months ended June 30, 2021. Brokerage revenues decreased as a percentage of total net revenues, from 18.8% for the six months endedJune 30, 2020 to 7.0% for the six months ended June 30, 2021. On an operating basis, brokerage revenues were 9.9% and 18.0% for the six months ended June 30, 2021 and 2020, respectively, as a percentage of adjusted net revenues.

Asset Management Fees

(In thousands)	Six Months Ended June 30,
	2021		2020
Asset management related fees:
Fees reported as asset management fees	$	13,270	$	3,428
Fees reported as other income		1,943		1,847
Less: Non-controlling interests in asset management related fee revenues		504		647
Total segment asset management related fee revenues	$	15,717	$	5,922

Fees reported as asset management fees were $13.3 million and $3.4 million for the six months ended June 30, 2021 and 2020, respectively. As a percentage of total net revenues, asset management revenues increased from 9.7% for the six months ended June 30, 2020 to 15.3% for the six months ended June 30, 2021 due to an increase of incentive fees earned of $9.8 million.

Total segment asset management related fee revenue increased $9.8 million from $5.9 million for the six months ended June 30, 2020 to $15.7 million for the six months ended June 30, 2021. On an operating basis, asset management related fee revenues were 15.6% and 8.5% for the six months ended June 30, 2021 and 2020, respectively, as a percentage of total net revenues.

Principal Transactions

Principal transaction revenues increased $14.3 million from a loss of $17.6 million for the six months ended June 30, 2020 to a loss of $3.3 million for the same period in 2021. This increase was primarily driven by a $8.3 million impairment loss on CLO debt securities for the six months ended June 30, 2021 compared to the loss for the six months ended June 30, 2020 of $14.5 million.

Total segment principal transaction revenues increased from $2.3 million for the six months ended June 30, 2020 to $3.9 million for the same period in 2021. Total segment principal transaction revenues are a non-GAAP financial measure that aggregates our segment reported principal transaction revenues across each segment. The principal transaction revenues for both 2021 and 2020 were included in our Investment Income segment. Total segment principal transaction revenues are reconciled to the GAAP measure, total principal transaction revenues, in the table below. See the Operating Net Income section above for additional information on the adjustments made to arrive at the non-GAAP measure and why management believes that this non-GAAP number is useful and important to the users of these financial statements.

(In thousands)	Six Months Ended June 30,
	2021			2020

Equity and other securities	$	847		$	(491	)
Warrants and other investments		2,559			2,321
Investment partnerships		513			518
Total segment principal transaction revenues		3,919			2,348
Operating adjustment addbacks		(7,179	)		(19,948	)
Total principal transaction revenues	$	(3,260	)	$	(17,600	)

On an operating basis, as a percentage of adjusted net revenues, principal transaction revenues decreased from 4.3% for the six months ended June 30, 2020 to 4.2% for the six months ended June 30, 2021.

Net Interest Income/Expense

Net interest income increased $0.2 million from $0.6 million for the six months ended June 30, 2020 to $0.8 million for the six months ended June 30, 2021 As a percentage of total net revenues, net interest income was 1.7% for the six months ended June 30, 2020 and 0.9% for the six months ended June 30, 2021.

Total segment net interest income increased $0.2 million from $0.7 million for the six months ended June 30, 2020 to $0.8 million for the six months ended June 30, 2021. Net interest income is earned in our Investment Income segment. Total segment net interest income reflects the effective yield of the Company's ownership of subordinated notes in CLO III, CLO IV, and CLO V, net of bond interest expense. Total segment net interest income is reconciled to the GAAP measure, total net interest income, in the table above. As a percentage of total adjusted net revenues, net interest income was 0.9% for the six months endedJune 30, 2020 and 0.9% for the six months ended June 30, 2021.

Expenses

Non-Interest Expenses

Compensation and Benefits

Compensation and benefits, which includes employee payroll, taxes and benefits, performance-based cash bonus and commissions, as well as equity-based compensation to our employees and managing directors, increased $26.5 million, or 68.6%, from $38.6 million for the six months ended June 30, 2020 to $65.1 million for the six months ended June 30, 2021.

Compensation and benefits as a percentage of revenues decreased from 109.5% of total net revenues for the six months ended June 30, 2020 to 74.8% for the six months ended June 30, 2021.

Administration

Administration expense increased $0.1 million from $3.3 million for the six months ended June 30, 2020 to $3.4 million for the six months ended June 30, 2021. As a percentage of total net revenues, administration expense was 3.9% and 9.3% for the six months ended June 30, 2021 and 2020, respectively.

Travel and Business Development

Travel and business development expense was $1.0 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively. As a percentage of total net revenues, travel and business development expense was 0.3% and 2.8% for the six months ended June 30, 2021 and 2020, respectively.

Communications and Technology

Communications and technology expense was $2.3 million and $2.2 million for thesix months ended June 30, 2021 and 2020, respectively. As a percentage of total net revenues, communications and technology expense was 2.6% and 6.3% for the six months ended June 30, 2021 and 2020, respectively.

Occupancy

Occupancy expenses was $2.4 million for both of the six months ended June 30, 2021 and 2020, respectively. As a percentage of total net revenues, occupancy expenses were 2.7% and 6.8% for the six months ended June 30, 2021 and 2020, respectively.

Provision for Income Taxes

Income tax expense was $1.7 million and $7.1 million benefit for the six months ended June 30, 2021 and 2020, respectively. The Company's tax benefit decreased for the six months ended June 30, 2021 from June 30, 2020 due to an increase from net income.

On January 1, 2019, the Company elected to be treated as a C corporation for tax purposes, rather than a partnership, going forward.

Segment income tax was a $3.5 million expense and $0.7 million expense for the six months ended June 30, 2021 and 2020, respectively.

For segment reporting purposes, an effective tax rate of 26% was assumed for the six months ended June 30, 2021 and 2020 based on our best estimation of the subsidiary’s average rate of taxation over the long term.

Summarized Financial Information

JMP Group Inc., a wholly-owned subsidiary of JMP Group LLC, is the primary obligor of the Company’s 7.25% Senior Notes due 2027 (the “2027 Senior Notes”) (see Note 7, Debt). Pursuant to the indenture of the 2027 Senior Notes, JMP Group LLC and JMP Investment Holdings LLC (the “Guarantors”) are the guarantors of the 2027 Senior Notes. The Guarantors jointly and severally provide a full and unconditional guarantee of the due and punctual payment of the principal and interest on the 2027 Senior Notes and the due and punctual payment or performance of all other obligations of JMP Group Inc. under the indenture governing the 2027 Senior Notes.

The following summarized financial information presents the information of JMP Group LLC, JMP Investment Holdings LLC and JMP Group Inc. on a combined basis and eliminates intercompany balances. It does not include or present investments in subsidiaries that are not an issuer or guarantor. One of the non-guarantor subsidiaries not combined, JMP Securities, is subject to certain regulations, which require the maintenance of minimum net capital. This requirement may limit the issuer’s access to this subsidiary’s assets.

These disclosures are in accordance with the new disclosure requirements under SEC Regulation S-X Rule 3-10 and Rule 13-02 issued in March 2020. The amended financial disclosures will consist of summarized financial information, as defined in Rule 1-02(bb)(1) of Regulation S-X, of the issuers and guarantors, which may be presented on a combined basis, and reduce the number of periods presented. The amended non-financial disclosures, among other matters, will expand the qualitative disclosures about the guarantees and the issuers and guarantors. Consistent with the existing rule, disclosure of additional information about each guarantor will be required if it would be material for investors to evaluate the sufficiency of the guarantee. We have early adopted these disclosure rules.

The tables below present summarized financial information as of ~~March 31,~~June 30, 2021 and December 31, 2020 and for the ~~three~~six months ended ~~March 31, 2021~~.June 30, 2021.

(In thousands)	As of						As of
	March 31,			December 31,			June 30,			December 31,
	2021			2020			2021			2020

Cash and cash equivalents	$	8,800		$	8,761		$	14,141		$	8,761
Marketable securities owned, at fair value		26,036			26,843			17,557			26,843
Due from non-obligated subsidiaries		2,406			1,221			2,224			1,221
Deferred tax asset		15,696			15,911			14,329			15,911
Operating lease right-of-use asset		15,353			16,244			14,449			16,244
Total assets		81,162			82,901			76,311			82,901

Bond payable, net of debt issuance costs		71,289			80,912			61,834			80,912
Due to non-obligated subsidiaries		17,826			19,200			17,639			19,200
Operating lease liability		19,997			21,130			18,849			21,130
Total liabilities		123,643			134,778			112,881			134,778
Total equity		(42,481	)		(51,877	)		(36,571	)		(51,877	)
Total liabilities and equity		81,162			82,901			76,311			82,901

(In thousands)	Three Months Ended			Six Months Ended
	March 31, 2021			June 30, 2021

Total net revenues after provision for loan losses	$	(3,564	)	$	(3,477	)
Total non-interest expenses		2,533			2,727
Net loss		(4,467	)		(5,827	)

3644

Financial Condition, Liquidity and Capital Resources

In the section that follows, we discuss the significant changes in the components of our balance sheet, cash flows and capital resources and liquidity for the ~~three~~six months ended ~~March 31,~~June 30, 2021 to demonstrate where our capital is invested and the financial condition of the Company.

Overview

As a result of the ongoing COVID-19 pandemic, we expected certain costs to decline as the underlying activities were restricted by the COVID-19 pandemic, including travel and related expenses. However, the extent to which the COVID-19 pandemic will impact our liquidity in future periods still remains uncertain.

As of ~~March 31,~~June 30, 2021,, we had ~~$61.2~~ $87.0 million in cash and cash equivalents ~~and~~and $17.9 million in undrawn borrowing capacity on our revolving line of credit (some of which borrowing capacity may be used for working capital – See the section entitled JMP Holding LLC Credit Agreement with CNB, below). Based on our historical results, management's experience and our current business strategy, we believe that our existing cash resources and available credit will be sufficient to meet anticipated working capital and capital expenditure requirements for at least the next twelve months.

As of ~~March 31,~~June 30, 2021, we had net liquid assets of ~~$110.7~~$103.5 million primarily consisting of cash and cash equivalents, receivable from clearing brokers, marketable securities owned, and investment banking receivables, net of marketable securities sold but not yet purchased and accrued compensation. We have satisfied our capital and liquidity requirements primarily through the issuance of the Senior Notes, draws on a line of credit, and internally generated cash from operations. Most of our financial instruments, other than loans held for investment and certain marketable securities, are recorded at fair value or amounts that approximate fair value.

Liquidity Considerations

As of ~~March 31,~~June 30, 2021,, our material indebtedness consisted of our then outstanding Senior Notes and borrowing on our revolving line of credit with City National Bank (“CNB”) under the Credit Agreement described below.

Senior Notes

In November 2017, JMP Group Inc. raised $50.0 million from the issuance of 7.25% Senior Notes (“2027 Senior Notes”). The 2027 Senior Notes will mature on November 15, 2027 and may be redeemed in whole or in part at any time or from time to time at JMP Group Inc.’s option on or after November 28, 2020 at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The 2027 Senior Notes bear interest at a rate of 7.25% per year, payable quarterly on February 15, May 15, August 15 and November 15 of each year. Pursuant to the indenture of the 2027 Senior Notes, JMP Group LLC and JMP Investment Holdings LLC (the “Guarantors”) are the guarantors of the 2027 Senior Notes. The Guarantors jointly and severally provide a full and unconditional guarantee of the due and punctual payment of the principal and interest on the 2027 Senior Notes and the due and punctual payment or performance of all other obligations of JMP Group Inc. under the indenture governing the 2027 Senior Notes.

In September 2019, JMP Group LLC raised $36.0 million from the issuance of 6.875% Senior Notes (“2029 Senior Notes”). The 2029 Senior Notes will mature on September 30, 2029 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after September 30, 2021 at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The 2029 Senior Notes bear interest at a rate of 6.875% per year, payable quarterly on March 30, June 30, September 30, and December 30 of each year.

In March 2020, the Company repurchased $1.4 million and $0.7 million par value of its issued and outstanding 2029 Senior Notes and 2027 Senior Notes, respectively. Since they were repurchased at less than carrying value, a gain of $0.7 million was recognized upon the repurchase of the bonds, which has been included in the Consolidated Statements of Operations, gain on repurchase, reissuance or early retirement of debt.

In February and June of 2021, the Company redeemed $10.0 million par value in each month of its issued and outstanding 2027 Senior Notes.

On July 19, 2021, the Company redeemed $15.0 million par value of its issued and outstanding 2027 Senior Notes. The Company recognized a $0.4 million loss on the redemption.

JMP Holding LLC Credit Agreement with CNB

JMP Holding LLC (the “Borrower”), a wholly owned subsidiary of the Company, entered into a Second Amended and Restated Credit Agreement dated April 30, 2014 among the Borrower, the lenders from time to time party thereto (the “Lenders”) and CNB, as administrative agent for the Lenders (as amended, the “Credit Agreement”).

On December 31, 2020, the Borrower entered into an Amendment Number Eight (the “Eighth Amendment”) to that certain Second Amended and Restated Credit Agreement dated April 30, 2014 among the Borrower, the Lenders and CNB. The Eighth Amendment extended the outside maturity date of the Revolving Loan under the Credit Facility from December 31, 2020 to December 31, 2022 and removed the mechanism whereby the Revolving Loan would convert into a term loan for 12 months after the revolving period ends. The Eighth Amendment amended certain financial covenants and introduced a definition of “Borrowing Base”, which is a sum of certain assets of the Loan Parties, and added a provision that caps the total amount that can be borrowed under the Revolving Loan to the amount of the Borrowing Base if the Borrowing Base is lower than the Maximum Revolver Amount of $25 million. As of ~~March 31,~~June 30, 2021,, the Borrowing Base exceeded $25 million.

The Credit Agreement provides a $25.0 million revolving line of credit (the “Revolver”) through December 31, 2022 that bears interest at a rate of LIBOR plus 225 bps.

The Credit Agreement provides that the Revolver may be used, on a revolving basis, to fund specified permitted investments in collateralized loan obligation vehicles. In addition, up to $5.0 million of the Revolver may be used, on a revolving basis, to fund other types of permitted investments and acquisitions and for working capital.

As of ~~March 31,~~June 30, 2021, the Borrower had drawn $6.0 million against the Revolver and had letters of credit outstanding under this facility to support office lease obligations of approximately $1.1 million in the aggregate.

The Credit Agreement contains financial and other covenants, including, but not limited to, limitations on debt, liens and investments, as well as the maintenance of certain financial covenants. The Credit Agreement also includes an event of default for a “change of control” that tests, in part, the composition of our ownership and an event of default if three or more of the members of the Company’s executive committee fail to be involved actively on an ongoing basis in the management of the Company or any of its subsidiaries. A violation of any one of these covenants could result in a default under the Credit Agreement, which would permit CNB to terminate our Revolver or Converted Term Loan and require the immediate repayment of any outstanding principal and interest. In addition, our subsidiaries are restricted under the Credit Agreement under certain circumstances from making distributions to us if an event of default has occurred under the Credit Agreement.

As of ~~March 31,~~June 30, 2021 and December 31, 2020,, we were in compliance with the loan covenants under the Credit Agreement.

The Borrower’s obligations under the Credit Agreement are guaranteed by all of the Company’s other wholly owned subsidiaries (other than JMP Securities and certain dormant subsidiaries) and are secured by substantially all of its and the guarantors’ assets. In addition, we have entered into a limited recourse pledge agreement with CNB whereby JMP Group LLC granted a lien on the equity interests in JMP Investment Holdings LLC and JMPAM to secure the Borrower’s obligations under the Credit Agreement. In July 2020, the Company entered into a Seventh Amendment to its Credit Facility with CNB, that among other things, requires the Company maintain a minimum of $6.0 million of CLO debt securities, based on their fair value as of June 30, 2020 pledged as collateral supporting the obligations under the Credit Agreement.

With the liquidation of CLO III, on August 4, 2021, the Company entered into a Ninth Amendment to its Credit Facility with CNB that restated the agreement to require the Company to maintain a minimum of $4.0 million of CLO debt securities based on their fair value as of June 30, 2020, pledged as collateral supporting the obligations under the Credit Agreement. See Note 9,7, Debt, for more information on the Seventh and Ninth Amendments. See Note 7, ~~Loans~~Debt, for more information on the Seventh Amendment.

3745

JMP Securities LLC Revolving Note Agreement with CNB

Under a Revolving Note and Cash Subordination Agreement (as amended, the “Revolving Note Agreement”) and related Revolving Note (as amended, the “Revolving Note”), each dated April 8, 2011, JMP Securities holds a $20.0 million revolving line of credit with CNB to be used for regulatory capital purposes in connection with its securities underwriting activities. Advances under the Revolving Note Agreement bear interest at CNB’s announced prime interest ~~rate.~~rate. The unused portion of the line bears interest at the rate of 0.25% per annum, paid monthly.

On June 29, ~~2020,~~2021, JMP Securities entered Amendment Number ~~Eleven~~Twelve to the Revolving Note Agreement. Pursuant to this amendment, the $20.0 million Revolving Note Agreement was extended for one year until June 30, ~~2021.~~2022. On June 30, ~~2021,~~2022, any existing outstanding amount under the Revolving Note will convert to a term loan maturing the following year.

There was no borrowing on the Revolving Note as of ~~March 31,~~June 30, 2021 and December 31, ~~2020~~.2020.

The Revolving Note Agreement contains financial and other covenants. A violation of any one of these covenants could result in a default under the Revolving Note, which would permit CNB to terminate the Revolving Note and require the immediate repayment of any outstanding principal and interest, subject to the terms of the Revolving Note Agreement.

At both ~~March 31,~~June 30, 2021 and December 31, 2020,, JMP Securities was in compliance with the loan covenants under the Revolving Note Agreement.

JMP Securities’ obligations under the Revolving Note Agreement are guaranteed by all of the Company’s wholly owned subsidiaries (other than JMP Securities) and are secured by substantially all the guarantors’ assets.

Other JMP Group LLC considerations

On February 24, 2020 the Company launched a self-tender offer (the “2020 Tender Offer”) to repurchase for cash up to 3,000,000 of shares, at $3.25 a share, representing limited liability company interests of the Company, which was terminated on March 19, 2020 as a result of multiple conditions to the 2020 Tender Offer, including share price and market index conditions, not having been satisfied.

During the three months ended ~~March 31,~~June 30, 2021,, the Company did not repurchase any of the Company's shares.

On February 19, 2020, the Company suspended its quarterly cash distributions program on outstanding shares.

Upon the securitization of Medalist Partners Corporate Finance CLO VI in February 2020, the Company received $13.7 million in cash from the CLO VI warehouse and recognized a gain of $1.0 million.

We had total restricted cash of ~~$0.7~~$0.8 million comprised primarily of restricted cash at JMP Group Inc. related to the Company’s letters of credit on leasing arrangements.

The timing of bonus compensation payments to our employees may significantly affect our cash position and liquidity from period to period. While our employees and managing directors are generally paid semi-monthly during the year, bonus compensation, which makes up a larger portion of total compensation, is generally paid once a year during the first two months of the following year. In the first two months of 2021, we paid out $44.5million of cash bonuses for 2020, including employer payroll tax expense. In the first two months of 2020, we paid out $26.9 million of cash bonuses for 2019, including employer payroll tax expense.

Because of the nature of our investment banking and sales and trading businesses, liquidity is important to us. Accordingly, we regularly monitor our liquidity position, including our cash and net capital positions. We believe that our available liquidity and current level of equity capital, combined with the funds anticipated to be provided by our operating activities, will be adequate to meet our liquidity and regulatory capital requirements for at least the next twelve months. If circumstances required it, we could improve our liquidity position by discontinuing repurchases of the Company’s common shares, halting cash distributions on our common shares and reducing cash bonus compensation paid.

JMP Securities, our wholly-owned subsidiary and a registered securities broker-dealer, is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined under the Exchange Act, shall not exceed 15 to 1. JMP Securities had net capital of ~~$26.4~~$40.3 million and $42.3 million, which were ~~$24.9~~$38.7 million and $40.6 million in excess of the required net capital of ~~$1.5~~$1.6 million and $1.7 million, at ~~March 31,~~June 30, 2021 and December 31, 2020, respectively. JMP Securities’ ratio of aggregate indebtedness to net capital was ~~0.86 to 1 and~~ 0.62 to 1 at ~~March 31,~~June 30, 2021 and December, 31, ~~2020, respectively.~~2020.

A condensed table of cash flows for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020 is presented below.

(Dollars in thousands)	Three Months Ended March 31,						Change from 2020 to 2021						Six Months Ended June 30,						Change from 2020 to 2021
	2021			2020			$			%			2021			2020			$			%
Cash flows used in operating activities	$	(20,331	)	$	(23,243	)		2,912			-12.5	%
Cash flows provided by (used in) operating activities													$	10,041		$	(18,074	)		28,115			-155.6	%
Cash flows provided by investing activities		155		$	13,423			(13,268	)		-98.8	%		5,701		$	13,388			(7,687	)		-57.4	%
Cash flows used in financing activities		(10,058	)	$	(1,375	)		(8,683	)		631.5	%
Cash flows (used in) provided by financing activities														(20,199	)	$	2,275			(22,474	)		-987.9	%
Total cash flows	$	(30,234	)	$	(11,195	)	$	(19,039	)		170.1	%	$	(4,457	)	$	(2,411	)	$	(2,046	)		84.9	%

Cash Flows for the ~~Three~~Six Months Ended ~~March 31,~~June 30, 2021

Cash decreased by ~~$30.2~~$4.5 million during the ~~three~~six months ended ~~March 31,~~June 30, 2021 as a result of cash used in ~~operating activities and~~ financing activities partially offset by cash provided by investing and operating activities.

Our operating activities ~~used $20.3~~provided $10.0 million of cash from net income of ~~$1.2~~$4.8 million, ~~adjusted for cash used by~~change in operating assets and liabilities of ~~$23.0~~$3.7 million and deferred income tax expense of $1.7 million.

Our investing activities provided ~~$0.1~~$5.7 million of cash primary due to ~~$0.9~~$6.8 million of sales and distributions from non-equity method investments, partially offset by ~~$0.8~~$1.5 million of purchases of other investments.

Our financing activities used ~~$10.0~~$20.2 million of cash primarily due to ~~$10~~$20 million ~~in repurchase~~redemption of bonds payable.

Cash Flows for the ~~Three~~Six Months Ended ~~March 31,~~June 30, 2020

Cash decreased by ~~$11.2~~$2.4 million during the ~~three~~six months ended ~~March 31,~~June 30, 2020 as a result of cash used in operating ~~and financing~~ activities, partially offset by cash provided by investing and financing activities.

Our operating activities used ~~$23.2~~$18.1 million of cash from a net loss of ~~$11.8~~$10.7 million, adjusted for the cash used on the gain on other investments, and cash used by operating assets and liabilities of ~~$11.2~~$7.1 million. The cash used by the change in operating assets and liabilities was primarily due to a decrease in accrued compensation of ~~$24.7~~$13.8 million, increase in other assets of ~~$5.9~~$5.3 million, increase of $3.8 million in receivables, decrease of $1.9 million in other liabilities, and $1.4 million increase in marketable securities sold but not yet repurchased, partially offset by an $18.8 million decrease in marketable ~~securities, and a $3.3 million decrease in receivables.~~securities.

Our investing activities provided $13.4 million of cash primarily due to a ~~$13.7~~$13.8 million in sales from ~~other~~non-equity method investments.

Our financing activities ~~used $1.4~~provided $2.3 million of cash primarily due to ~~$1.3~~$3.8 million proceeds from PPP loans, partially offset by $1.4 million in repurchase of bonds payable.

Contractual Obligations

As of ~~March 31,~~June 30, 2021, our aggregate minimum future commitment on our leases ~~was $22.4 million.~~ was$21 million.

As of ~~March 31,~~June 30, 2021, ~~$76.0~~$66.0 million of bonds payable were outstanding, of which $36.0 million carries interest at a rate of 6.875% per annum and is due in 2029 and the remaining ~~$40.00~~$30.00 million carries interest at a rate of 7.25% per annum and is due in 2027. The bonds require quarterly payments of interest. Our remaining contractual obligations have not materially changed from those reported in our Annual Report.

Off-Balance Sheet Arrangements

Unfunded commitments are agreements to lend to a borrower, provided that all conditions have been met. The Company had no material unfunded commitments to lend at both ~~March 31,~~June 30, 2021 and 2020.

We had no material off-balance sheet arrangements as of ~~March 31,~~June 30, 2021. However, through indemnification provisions in our clearing agreements with our clearing brokers, customer activities may expose us to off-balance sheet credit risk, which we seek to mitigate through customer screening and collateral requirements.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and of revenues and expenses during the reporting periods. We base our estimates and assumptions on historical experience and on various other factors that we believe are reasonable under the circumstances. The use of different estimates and assumptions could produce materially different results. For example, if factors such as those described under the caption “Risk Factors” in our Annual Report cause actual events to differ from the assumptions we used in applying the accounting policies, our results of operations, financial condition and liquidity could be adversely affected.

On an ongoing basis, we evaluate our estimates and assumptions, particularly as they relate to accounting policies that we believe are most important to the presentation of our financial condition and results of operations. We regard an accounting estimate or assumption to be most important to the presentation of our financial condition and results of operations where:

•

the nature of the estimates or assumptions is material due to the level of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and

•

the impact of the estimates or assumptions on our financial condition or operating performance is material.

Using the foregoing criteria, we consider the following to be our critical accounting policies:

●

Valuation of Financial Instruments

●

CLO Debt Securities

●

Asset Management Investment Partnerships

●

~~CLO Debt Securities~~Legal and Other Contingent Liabilities

●

~~Asset Management Investment Partnerships~~

●

~~Legal and Other Contingent Liabilities~~

●

Income Taxes

Our significant accounting policies are described further in the “Critical Accounting Policies and Estimates” section and Note 2 - Summary of Significant Accounting Policies in these financial statements and our consolidated financial statements in our Annual Report.

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

ITEM 4.

Controls and Procedures

(a)

Disclosure Controls and Procedures

Our management, with the participation of the Chairman and Chief Executive Officer (the principal executive officer) and the Chief Financial Officer (the principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chairman and Chief Executive Officer and Chief Financial Officer, as principal executive officer and principal financial officer, respectively, have concluded that, as of the end of such period covered by this report, our disclosure controls and procedures are effective.

(b)

Changes in Internal Controls Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1.

Legal Proceedings

We are involved in a number of judicial, regulatory and arbitration matters arising in connection with our business. The outcome of matters we have been and currently are involved in cannot be determined at this time, and the results cannot be predicted with certainty. There can be no assurance that these matters will not have a material adverse effect on our results of operations in any future period and a significant judgment could have a material adverse impact on our financial condition, results of operations and cash flows. We may in the future become involved in additional litigation in the ordinary course of our business, including litigation that could be material to our business. Management, after consultation with legal counsel, believes that, except as described below, the currently known actions or threats against us will not result in any material adverse effect on our financial condition, results of operations or cash flows.

ITEM 1A.

Risk Factors

In addition to the other information set forth in this report, you should carefully review and consider the information regarding certain factors that could materially affect our business, financial condition, or future results set forth under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 29, 2021.

There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K, although we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended ~~March 31,~~June 30, 2021,, no purchases of the Company’s shares was made by or on behalf of JMP Group LLC. As of ~~March 31,~~June 30, 2021,, there were no shares available to be repurchased as part of publicly announced programs or plans.

ITEM 3.

Defaults Upon Senior Securities

None.

ITEM 4.

Mine Safety Disclosures

Not Applicable.

ITEM 5.

Other Information

None.

ITEM 6.

Exhibits

EXHIBIT INDEX

Exhibit Number		Description

10.1*		Amendment Number Twelve to Revolving Note and Cash Subordination Agreement & Revolving Note, dated June 29, 2021, by and between JMP Securities LLC and City National Bank, a national banking association.

10.2*		Amendment Number Nine and Waiver to Second Amended and Restated Credit Agreement, dated as of August 4, 2021, by and between JMP Holding LLC, as Borrower, the lenders party thereto and City National Bank, a national banking association, as the administrative agent for the lenders.

31.1*		Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Document

101.LAB*		Inline XBRL Taxonomy Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

_________

*Filed herewith

** Furnished, not filed

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: ~~May 11,~~August 10, 2021

	JMP Group LLC

	By:		/s/ JOSEPH A. JOLSON
	Name:		Joseph A. Jolson
	Title:		Chairman and Chief Executive Officer

	By:		/s/ ~~JOSEPH A. JOLSON~~ RAYMOND S. JACKSON
	Name:		~~Joseph A. Jolson~~Raymond S. Jackson
	Title:		~~Chairman and Chief Executive Officer~~

	~~By:~~		~~/s/ RAYMOND S. JACKSON~~
	~~Name:~~		~~Raymond S. Jackson~~
	~~Title:~~		Chief Financial Officer

4553

Title of Each Class	Trading symbol(s)	Name of Each Exchange on Which Registered
Shares representing limited liability company interests in JMP Group LLC	JMP	New York Stock Exchange
JMP Group LLC 6.875% Senior Notes due 2029	JMPNZ	The NASDAQ Global Market
JMP Group Inc. 7.25% Senior Notes due 2027	JMPNL	The NASDAQ Global Market

		Page
PART I.	FINANCIAL INFORMATION	4

Item 1.	Financial Statements - JMP Group LLC	4
	Consolidated Statements of Financial Condition as of ~~March 31,~~June 30, 2021 (Unaudited) and December 31, 2020	4
	Consolidated Statements of Operations For The Three and Six Months Ended ~~March 31,~~June 30, 2021 (Unaudited) and 2020 ~~(Unaudited)~~	5
	Consolidated Statements of Comprehensive Income (Loss) For The Three and Six Months Ended ~~March 31,~~June 30, 2021(Unaudited) and 2020 ~~(Unaudited)~~	6
	Consolidated Statements of Changes in Shareholders' Equity For The Three and Six Months Ended ~~March 31,~~June 30, 2021 (Unaudited) and 2020 ~~(Unaudited)~~	7
	Consolidated Statements of Cash Flows For The ~~Three~~Six Months Ended ~~March 31,~~June 30, 2021 (Unaudited) and 2020 ~~(Unaudited)~~	8
	Notes to Consolidated Financial Statements (Unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2731
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4149
Item 4.	Controls and Procedures	4149

PART II.	OTHER INFORMATION	4250

Item 1.	Legal Proceedings	4250
Item 1A.	Risk Factors	4250
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4351
Item 3.	Defaults Upon Senior Securities	4351
Item 4.	Mine Safety Disclosures	4351
Item 5.	Other Information	4351
Item 6.	Exhibits	4351

EXHIBIT INDEX		4452

SIGNATURES		4553

	March 31, 2021			December 31, 2020 (1)			*June 30, 2021*			*December 31, 2020 (1)*
Assets
Cash and cash equivalents	$	61,204		$	91,444		$	86,981		$	91,444
Restricted cash		1,293			1,287			1,293			1,287
Investment banking fees receivable		17,277			13,676			18,163			13,676
Marketable securities owned at fair value (includes $5,660 and $5,696 pledged as collateral at March 31, 2021 and December 31, 2020, respectively)		57,653			55,494
Other investments (includes $15,006 and $17,611 measured at fair value at March 31, 2021 and December 31, 2020, respectively)		25,093			26,821
Marketable securities owned at fair value (includes $3,637 and $5,696 pledged as collateral at June 30, 2021 and December 31, 2020, respectively)								40,000			55,494
Other investments (includes $12,864 and $17,611 measured at fair value at June 30, 2021 and December 31, 2020, respectively)								19,033			26,821
Loans held for investment, net of allowance for loan losses		901			994			520			994
Interest receivable		312			336			302			336
Fixed assets, net		2,855			3,118			2,622			3,118
Operating lease right-of-use asset		15,353			16,244			14,449			16,244
Deferred tax asset		17,926			17,895			16,558			17,895
Other assets		15,396			14,022			26,143			14,022
Total assets	$	215,263		$	241,331		$	226,064		$	241,331

Liabilities and Equity
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	$	446		$	-
Accrued compensation		18,264			46,353		$	40,459		$	46,353
Interest payable		610			706			515			706
Note payable		10,610			10,610			10,610			10,610
Bond payable (net of debt issuance costs of $2,600 and $2,953 at March 31, 2021 and December 31, 2020, respectively)		71,289			80,912
Bond payable (net of debt issuance costs of $2,221 and $2,953 at June 30, 2021 and December 31, 2020, respectively)								61,834			80,912
Operating lease liability		19,997			21,130			18,849			21,130
Deferred tax liability		9,298			8,482			8,363			8,482
Other liabilities		18,269			10,730			14,505			10,730
Total liabilities		148,783			178,923			155,135			178,923

Commitments and Contingencies (Note 14)
JMP Group LLC Shareholders' Equity
Common shares, $0.001 par value, 100,000,000 shares authorized at March 31, 2021 and December 31, 2020; 22,797,092 shares issued at March 31, 2021 and December 31, 2020; 19,835,721 and 19,789,821 shares outstanding at March 31, 2021 and December 31, 2020, respectively		23			23
Common shares, $0.001 par value, 100,000,000 shares authorized at June 30, 2021 and December 31, 2020; 22,797,092 shares issued at June 30, 2021 and December 31, 2020; 19,877,113 and 19,789,821 shares outstanding at June 30, 2021 and December 31, 2020, respectively								23			23
Additional paid-in capital		134,259			134,065			133,884			134,065
Treasury shares at cost, 3,161,548 and 3,007,271 shares at March 31, 2021 and December 31, 2020, respectively		(13,286	)		(13,478	)
Treasury shares at cost, $2,919,979 and $3,007,271 shares at June 30, 2021 and December 31, 2020, respectively								(13,126	)		(13,478	)
Accumulated other comprehensive income (loss)		2,149			(369	)		2,216			(369	)
Accumulated deficit		(56,212	)		(57,301	)		(52,585	)		(57,301	)
Total JMP Group LLC shareholders' equity		66,933			62,940			70,412			62,940
Non-controlling interest		(453	)		(532	)		517			(532	)
Total equity		66,480			62,408			70,929			62,408
Total liabilities and equity	$	215,263		$	241,331		$	226,064		$	241,331

	Three Months Ended March 31,						*Three Months Ended June 30,*						*Six Months Ended June 30,*
	2021			2020			*2021*			*2020*			*2021*			*2020*
Net income (loss)	$	1,168		$	(11,839	)	$	3,643		$	1,098		$	4,811		$	(10,741	)
Other comprehensive income:
Net unrealized losses on available-for-sale securities, during the period, net of income tax benefit of ($308) and ($3,163)		(886	)	$	(8,609	)
Less: Reclassification adjustments for net losses on available-for-sale securities, net of income tax provision of $1,184 and $3,633		3,403			9,890
Net other comprehensive income, net of income tax provision of $876 and $470		2,517			1,281
Net unrealized (losses) gains on available-for-sale securities, during the period, net of income tax (benefit) and provision of ($301), $828, ($609) and ($2,335)								(864	)	$	2,253			(1,750	)	$	(6,354	)
Less: Reclassification adjustments for net losses on available-for-sale securities, net of income tax provision of $233, $272, $1,417 and $3,906								931			742			4,334			10,630
Net other comprehensive income, net of income tax (benefit) and provision of ($68), $1,100, $808 and $1,571								67			2,995			2,584			4,276
Comprehensive income (loss)		3,685			(10,558	)		3,710			4,093			7,395			(6,465	)
Less: Comprehensive income (loss) attributable to non-controlling interest		79			(91	)		15			(26	)		94			(117	)
Comprehensive income (loss) attributable to JMP Group LLC	$	3,606		$	(10,467	)	$	3,695		$	4,119		$	7,301		$	(6,348	)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended ~~March 31,~~June 30, 2021 OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

	JMP Group LLC's Equity																				*JMP Group LLC's Equity*
	Common Shares				Treasury			Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Non-controlling			Total		*Common Shares*				*Treasury*			*Additional Paid-In*			*Accumulated*			*Accumulated Other Comprehensive*			*Non-controlling*			*Total*
	Shares		Amount		Shares			Capital		Deficit			Income (Loss)			Interest			Equity		*Shares*		*Amount*		*Shares*			*Capital*			*Deficit*			*Income (Loss)*			*Interest*			*Equity*
Balance, December 31, 2020		22,797	$	23	$	(13,478	)	$	134,065	$	(57,301	)	$	(369	)	$	(532	)	$	62,409		22,797	$	23	$	(13,479	)	$	134,065		$	(57,301	)	$	(369	)	$	(532	)	$	62,408
Net income		-		-		-			-		1,089			-			79			1,168		-		0		0			0			1,089			0			79			1,168
Additional paid-in capital - share-based compensation		-		-		-			194		-			-			-			194
Additional paid-in capital																						-		0		0			194			0			0			0			194
Purchases of shares of common shares for treasury		-		-		192			-		-			-			-			192		-		0		(58	)		0			0			0			0			(58	)
Reissuance of shares of common shares from treasury																						-		0		250			0			0			0			0			250
Other comprehensive income		-		-		-			-		-			2,518			-			2,518		-		0		0			0			0			2,518			0			2,518
Balance, March 31, 2021		22,797		23		(13,286	)		134,259		(56,212	)		2,149			(453	)		66,481		22,797		23		(13,287	)		134,259			(56,212	)		2,149			(453	)		66,480
Net income																						-		0		0			0			3,628			0			15			3,643
Additional paid-in capital																						-		0		0			(377	)		0			0			975			598
Distributions and distribution equivalents paid to shareholders																						-		0		0			0			0			0			(20	)		(20	)
Purchases of shares of common shares for treasury																						-		0		(123	)		0			0			0			0			(123	)
Reissuance of shares of common shares from treasury																						-		0		284			0			0			0			0			284
Other comprehensive income																						-		0		0			0			0			67			0			67
Balance, June 30, 2021																						22,797		23		(13,126	)		133,882			(52,585	)		2,216			517			70,929

	December 31, 2020										*December 31, 2020*
(In thousands)	Carrying Value		Fair Value								*Carrying Value*		*Fair Value*
			Level 1		Level 2		Level 3		Total				*Level 1*		*Level 2*		*Level 3*		*Total*
Assets:
Cash and cash equivalents	$	91,444	$	91,444	$	-	$	-	$	91,444	$	91,444	$	91,444	$	0	$	0	$	91,444
Restricted cash and deposits		1,287		1,287		-		-		1,287		1,287		1,287		0		0		1,287
Marketable securities owned		55,494		7,491		-		48,003		55,494		55,494		7,491		0		48,003		55,494
Equity investments		6,457		-		2,251		4,206		6,457		6,457		0		2,251		4,206		6,457
Other investments measured at net asset value ⁽¹⁾		11,155		-		-		-		-		11,155		0		0		0		0
Loans held for sale ⁽²⁾		2,412		-		-		2,412		2,412		2,412		0		0		2,412		2,412
Loans held for investment, net of allowance for loan losses		994		-		-		994		994		994		0		0		994		994
Total assets:	$	169,243	$	100,222	$	2,251	$	55,615	$	158,088	$	169,243	$	100,222	$	2,251	$	55,615	$	158,088

Liabilities:
Notes payable	$	10,610	$	-	$	5,983	$	4,627	$	10,610	$	10,610	$	0	$	5,983	$	4,627	$	10,610
Bond payable		80,912		-		79,472		-		79,472		80,912		0		79,472		0		79,472
Total liabilities:	$	91,522	$	-	$	85,455	$	4,627	$	90,082	$	91,522	$	0	$	85,455	$	4,627	$	90,082

	(1)	In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The carrying value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Statements of Financial Condition.
	~~(2)~~(2)	Included in Other Assets on the Consolidated Statements of Financial Condition.

	(1)	In accordance with ASC ~~820-10,~~820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Consolidated Statements of Financial Condition.
	(2)	Included in Other Assets on the Consolidated Statements of Financial Condition.

(In thousands)	CLO Junior Subordinated Notes			Equity Investment			Total			CLO Junior Subordinated Notes			Equity Investment			Long Term Receivable		Total
Balance as of December 31, 2020	$	48,003		$	4,206		$	52,209		$	48,003		$	4,206		$	0	$	52,209
Investment distributions		(1,086	)		(774	)		(1,860	)		(1,086	)		(774	)		0		(1,860	)
Accrued interest		1,960			-			1,960			1,960			0			0		1,960
Realized/Unrealized losses on investments, recognized in earnings		(4,587	)		(19	)		(4,606	)		(4,587	)		(19	)		0		(4,606	)
Unrealized gains on investments, recognized in OCI		3,394			-			3,394			3,394			0			0		3,394
Balance as of March 31, 2021	$	47,684		$	3,413		$	51,097		$	47,684		$	3,412		$	0	$	51,097
Investment distributions											(6,834	)		(4,766	)		0		(11,600	)
Accrued interest											1,620			0			0		1,620
Realized/Unrealized losses on investments, recognized in earnings											(3,711	)		1,353			0		(2,358	)
Unrealized gains on investments, recognized in OCI											90			0			0		90
Addition											0			0			3,266		3,266
Balance as of June 30, 2021										$	38,849		$	(0	)	$	3,266	$	42,115

	~~Three Months Ended~~		~~Year Ended~~
~~(In thousands)~~	~~March 31, 2021~~		~~December 31, 2020~~
~~Balance, at beginning of the period~~	$	-	$	-
~~Provision for loan losses~~		-		~~(112~~	)
~~Charge off~~		-		~~112~~
~~Balance, at end of the period~~	$	-	$	-

	*Six Months Ended*		*Year Ended*
(In thousands)	*June 30, 2021*		*December 31, 2020*
Balance, at beginning of the period	$	0	$	0
Provision for loan losses		0		(112	)
Charge off		0		112
Balance, at end of the period	$	0	$	0

~~(1)~~(1)	In February 2021, the Company redeemed $10.0 million par value of its issued and outstanding 2027 Senior Notes. The Company recognized a $0.3 million loss on redemption, which is included in "(Loss) gain on repurchase, reissuance or early retirement of debt" on the Consolidated Statement of Operations. In June 2021, the Company redeemed another $10.0 million par value of its issued and outstanding 2027 Senior Notes. The Company recognized again another $0.3 million loss on redemption, which is included in "(Loss) gain on repurchase, reissuance or early retirement of debt" on the Consolidated Statement of Operations.
~~(2)~~
(2)	In March 2020, the Company repurchased $1.4 million and $0.7 million par value of its issued and outstanding 2029 Senior Notes and 2027 Senior Notes, respectively. Since they were repurchased at less than carrying value, a gain of $0.7 million was recognized upon the repurchase of the bonds, which is included in “(Loss) gain on repurchase, reissuance or early retirement of debt” on the Consolidated Statements of Operations.

	Three Months Ended				Six Months Ended
	March 31, 2021				June 30, 2021
	Shares Subject to Option		Weighted Average Exercise Price		Shares Subject to Option		Weighted Average Exercise Price

Balance, beginning of year		2,000,000	$	3.04		2,000,000	$	3.04
Granted		-		-		0		0
Forfeited		-		-		0		0
Balance, end of period		2,000,000	$	3.04		2,000,000	$	3.04

Options exercisable at end of period		500,000	$	3.04		500,000	$	3.04

	Three Months Ended					*Six Months Ended*
	March 31, 2021					*June 30, 2021*
	Restricted Share Units			Weighted Average Grant Date Fair Value		*Restricted Share Units*			*Weighted Average Grant Date Fair Value*

Balance, beginning of year		220,209		$	3.32		220,209		$	3.32
Granted		352,797			4.66		497,724			5.31
Vested		(55,755	)		3.17		(118,467	)		4.83
Forfeited							(18,878	)		4.24
Balance, end of period		517,251		$	4.25		580,588		$	4.69

(In thousands)	Outstanding Balance				*Outstanding Balance*
	March 31, 2021		December 31, 2020		*June 30, 2021*		*December 31, 2020*
$25 million, JMP Holding Credit Agreement	$	5,983	$	5,983
$25 million, JMP Holding Credit Agreement					$	5,983	$	5,983
Paycheck Protection Program (the "PPP") loan		3,798		3,798		3,798		3,798
Note payable to an affiliate (Note 16)		829		829		829		829
Total note payable, lines of credit, and credit facilities	$	10,610	$	10,610	$	10,610	$	10,610

(In thousands, except per share data)	Three Months Ended March 31,					*Three Months Ended June 30,*				*Six Months Ended June 30,*
	2021		2020			*2021*		*2020*		*2021*		*2020*
Numerator:
Net income (loss) attributable to JMP Group LLC	$	1,089	$	(11,748	)	$	3,628	$	1,124	$	4,717	$	(10,624	)

Denominator:
Basic weighted average shares outstanding		19,824		19,532			19,861		19,582		19,842		19,557

Effect of potential dilutive securities:
Restricted share units and share options		854		-			1,182		162		1,028		0

Diluted weighted average shares outstanding		20,678		19,532			21,043		19,744		20,870		19,557

Net income (loss) per share
Basic	$	0.05	$	(0.60	)	$	0.18	$	0.06	$	0.24	$	(0.54	)
Diluted	$	0.05	$	(0.60	)	$	0.17	$	0.06	$	0.23	$	(0.54	)

(in thousands)	Three Months Ended March 31, 2021								*Three Months Ended June 30, 2021*
	Broker -Dealer		Asset Management		Eliminations		Total		*Broker -Dealer*		*Asset Management*		*Eliminations*		*Total*
Total revenues from contracts with customers
Equity and debt origination	$	25,670	$	-	$	-	$	25,670	$	16,946	$	0	$	0	$	16,946
Strategic advisory and private placements		6,899		-		-		6,899		15,767		0		0		15,767
Total investment banking revenues		32,569		-		-		32,569		32,713		0		0		32,713
Commissions		4,622		-		-		4,622		2,270		0		0		2,270
Research payments		1,166		-		-		1,166		1,101		0		0		1,101
Net trading gains		117		-		-		117		20		0		0		20
Total brokerage revenues		5,905		-		-		5,905		3,391		0		0		3,391
Base management fees		-		2,095		-		2,095		0		1,298		0		1,298
Incentive management fees		-		74		-		74		0		9,803		0		9,803
Total asset management fees		-		2,169		-		2,169		0		11,101		0		11,101
Total revenues from contracts with customers	$	38,474	$	2,169	$	-	$	40,643	$	36,104	$	11,101	$	0	$	47,205

(in thousands)	Three Months Ended March 31, 2020											*Three Months Ended June 30, 2020*
	Broker -Dealer			Asset Management		Eliminations			Total			*Broker -Dealer*		*Asset Management*		*Eliminations*			*Total*
Total revenues from contracts with customers
Equity and debt origination	$	8,556		$	-	$	-		$	8,556		$	14,569	$	0	$	0		$	14,569
Strategic advisory and private placements		6,069			-		-			6,069			7,026		0		0			7,026
Total investment banking revenues		14,625			-		-			14,625			21,595		0		0			21,595
Commissions		3,718			-		-			3,718			3,996		0		0			3,996
Research payments		1,241			-		-			1,241			1,387		0		0			1,387
Net trading losses		(772	)		-		-			(772	)		262		0		0			262
Total brokerage revenues		4,187			-		-			4,187			5,645		0		0			5,645
Base management fees		-			1,727		(25	)		1,702			0		1,682		(25	)		1,657
Incentive management fees		-			14		-			14			0		56		0			56
Total asset management fees		-			1,741		(25	)		1,716			0		1,737		(25	)		1,712
Total revenues from contracts with customers	$	18,812		$	1,741	$	(25	)	$	20,528		$	27,240	$	1,737	$	(25	)	$	28,952

(in thousands)	*Six Months Ended June 30, 2021*
	*Broker -Dealer*		*Asset Management*		*Eliminations*		*Total*
Total revenues from contracts with customers
Equity and debt origination	$	42,615	$	0	$	0	$	42,615
Strategic advisory and private placements		22,667		0		0		22,667
Total investment banking revenues		65,282		0		0		65,282
Commissions		6,892		0		0		6,892
Research payments		2,267		0		0		2,267
Net trading gains		137		0		0		137
Total brokerage revenues		9,296		0		0		9,296
Base management fees		0		3,392		0		3,392
Incentive management fees		0		9,878		0		9,878
Total asset management fees		0		13,270		0		13,270
Total revenues from contracts with customers	$	74,578	$	13,270	$	0	$	87,848

(in thousands)	*Six Months Ended June 30, 2020*
	*Broker -Dealer*			*Asset Management*		*Eliminations*			*Total*
Total revenues from contracts with customers
Equity and debt origination	$	23,125		$	0	$	0		$	23,125
Strategic advisory and private placements		13,095			0		0			13,095
Total investment banking revenues		36,220			0		0			36,220
Commissions		7,714			0		0			7,714
Research payments		2,628			0		0			2,628
Net trading losses		(511	)		0		0			(511	)
Total brokerage revenues		9,832			0		0			9,832
Base management fees		0			3,409		(50	)		3,359
Incentive management fees		0			69		0			69
Total asset management fees		0			3,478		(50	)		3,428
Total revenues from contracts with customers	$	46,052		$	3,478	$	(50	)	$	49,479

	As of March 31, 2021																			*As of June 30, 2021*
(In thousands)	Broker-Dealer		Asset Management						Corporate Costs		Eliminations			Total Segments		Adjustments		Consolidated GAAP		*Broker-Dealer*		*Asset Management*						*Corporate Costs*		*Eliminations*			*Total Segments*		*Adjustments*		*Consolidated GAAP*
			Asset Management Fee Income		Investment Income		Total Asset Management															*Asset Management Fee Income*		*Investment Income*		*Total Asset Management*
Segment assets	$	72,384	$	11,196	$	65,563	$	76,759	$	128,711	$	(62,591	)	$	215,263	$	-	$	215,263	$	86,752	$	12,909	$	61,139	$	74,048	$	120,121	$	(54,857	)	$	226,064	$	0	$	226,064

(a)	Total segment asset management-related fees include income from fee sharing arrangements with, and fees earned to raise capital for, ~~third-party~~third-party or equity-method investment partnerships or funds, which are reported as other income under GAAP. In addition, total segment asset management-related fees exclude base management fees and incentive fees attributable to non-controlling interest.
(b)	Total segment principal transaction revenues exclude certain unrealized mark-to-market gains or losses, including those related to impairment of CLO debt securities and the Company's investment in Harvest Capital Credit Corporation, as well as unrealized losses derived from depreciation and amortization of real estate investment properties.
(c)	Total segment net dividend income and net interest income exclude those attributable to non-controlling interests.
(d)	Total segment gain/(loss) repurchase/early retirement of debt excludes losses on write offs of debt issuance costs related to early retirement or repurchase of debt.
(e)	Total segments non-interest expenses exclude compensation expense recognized under GAAP related to equity awards and expenses attributable to non-controlling interests.
(f)	Total segment income tax (benefit) assumes a combined federal, state and local income tax rate of 26%.
(g)	Operating net income (loss) is reconciled to GAAP net income (loss) attributable to JMP Group LLC.

	*As of June 30, 2020*
(In thousands)	*Broker-Dealer*		*Asset Management*						*Corporate Costs*		*Eliminations*			*Total Segments*		*Adjustments*		*Consolidated GAAP*
			*Asset Management Fee Income*		*Investment Income*		*Total Asset Management*
Segment assets	$	49,796	$	10,637	$	76,462	$	87,098	$	229,133	$	(159,144	)	$	206,883	$	0	$	206,883

	As of March 31, 2020
(In thousands)	Broker-Dealer		Asset Management						Corporate Costs		Eliminations			Total Segments		Adjustments		Consolidated GAAP
			Asset Management Fee Income		Investment Income		Total Asset Management
Segment assets	$	34,685	$	9,873	$	78,236	$	88,109	$	228,197	$	(161,947	)	$	189,044	$	-	$	189,044

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company