Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HF | ||
Entity Registrant Name | HFF, Inc. | ||
Entity Central Index Key | 1380509 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Class A Shares Outstanding | 37,677,981 | ||
Entity Public Float | $1.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $232,053 | $201,262 |
Accounts receivable | 1,462 | 1,093 |
Receivable from affiliate | 2 | 0 |
Mortgage notes receivable | 185,128 | 93,587 |
Prepaid taxes | 729 | 1,000 |
Prepaid expenses and other current assets | 3,281 | 2,495 |
Deferred tax asset, net | 5,955 | 8,779 |
Total current assets | 428,610 | 308,216 |
Property and equipment, net | 10,173 | 6,586 |
Deferred tax asset | 140,095 | 152,320 |
Goodwill | 3,712 | 3,712 |
Intangible assets, net | 20,647 | 16,776 |
Other noncurrent assets | 1,015 | 566 |
Total assets | 604,252 | 488,176 |
Current liabilities: | ||
Current portion of long-term debt | 337 | 258 |
Warehouse line of credit | 185,128 | 93,587 |
Accrued compensation and related taxes | 51,335 | 53,253 |
Accounts payable | 2,087 | 1,378 |
Current portion of payable under the tax receivable agreement | 10,789 | 10,831 |
Other current liabilities | 37,031 | 12,524 |
Total current liabilities | 286,707 | 171,831 |
Deferred rent credit | 7,304 | 5,801 |
Payable under the tax receivable agreement | 123,367 | 134,785 |
Long-term debt, less current portion | 429 | 185 |
Total liabilities | 417,807 | 312,602 |
Stockholders' equity: | ||
Treasury stock, 447,382 and 250,380 shares at cost, respectively | -9,042 | -2,760 |
Additional paid-in-capital | 101,148 | 76,097 |
Retained earnings | 93,958 | 101,865 |
Total equity | 186,445 | 175,574 |
Total liabilities and stockholders' equity | 604,252 | 488,176 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Class A common stock, par value $0.01 per share, 175,000,000 shares authorized; 38,125,363 and 37,498,796 shares issued, respectively; and 37,677,981 and 37,248,416 outstanding, respectively | $381 | $372 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Treasury stock, shares | 447,382 | 250,380 |
Class A Common Stock [Member] | ||
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 38,125,363 | 37,498,796 |
Common stock, shares outstanding | 37,677,981 | 37,248,416 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Capital markets services revenue | $418,969 | $351,253 | $276,907 |
Interest on mortgage notes receivable | 4,603 | 2,119 | 5,990 |
Other | 2,346 | 2,233 | 2,077 |
Total revenues | 425,918 | 355,605 | 284,974 |
Expenses | |||
Cost of services | 242,393 | 202,542 | 163,937 |
Personnel | 47,390 | 40,685 | 29,062 |
Occupancy | 9,848 | 8,909 | 8,159 |
Travel and entertainment | 12,304 | 9,497 | 7,825 |
Supplies, research, and printing | 6,310 | 4,922 | 5,089 |
Insurance | 2,036 | 1,973 | 1,849 |
Professional fees | 4,475 | 4,035 | 3,991 |
Depreciation and amortization | 7,830 | 6,800 | 5,767 |
Interest on warehouse line of credit | 2,425 | 1,239 | 4,012 |
Other operating | 6,080 | 5,026 | 5,166 |
Total expenses | 341,091 | 285,628 | 234,857 |
Operating income | 84,827 | 69,977 | 50,117 |
Interest and other income, net | 17,926 | 17,100 | 20,049 |
Interest expense | -41 | -33 | -42 |
Decrease (increase) in payable under the tax receivable agreement | 800 | -1,040 | -17,358 |
Income before taxes | 103,512 | 86,004 | 52,766 |
Income tax expense | 42,226 | 34,578 | 8,661 |
Net income | 61,286 | 51,426 | 44,105 |
Net income attributable to noncontrolling interest | 243 | ||
Net income attributable to controlling interest | $61,286 | $51,426 | $43,862 |
Earnings per share - Basic and Diluted | |||
Income available to HFF, Inc. common stockholders - Basic | $1.62 | $1.38 | $1.19 |
Weighted average shares outstanding - Basic | 37,758,519 | 37,345,918 | 36,917,096 |
Income available to HFF, Inc. common stockholders -Diluted | $1.61 | $1.36 | $1.18 |
Weighted average shares outstanding - Diluted | 37,982,351 | 37,745,685 | 37,151,792 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | |
In Thousands, except Share data | USD ($) | Class A Common Stock [Member] | Class A Common Stock [Member] | USD ($) | USD ($) | USD ($) | USD ($) | |
USD ($) | ||||||||
Beginning balance at Dec. 31, 2011 | $130,400 | $360 | ($490) | $64,049 | $62,914 | $3,567 | ||
Beginning balance, shares at Dec. 31, 2011 | 35,983,965 | 118,357 | ||||||
Issuance of Class A common stock, net | [1] | 11 | 2,670 | -2,681 | ||||
Issuance of Class A common stock, net, shares | [1] | 1,119,139 | ||||||
Repurchase of Class A common stock | -565 | -565 | ||||||
Repurchase of Class A common stock, shares | -39,260 | 39,260 | ||||||
Record the adjustment to give effect of the tax receivable agreement with HFF Holdings | 962 | 962 | ||||||
Stock compensation and other, net | 3,586 | 3,586 | ||||||
Distributions | -1,129 | -1,129 | ||||||
Dividends paid | -56,337 | -56,337 | ||||||
Net income | 44,105 | 43,862 | 243 | |||||
Ending balance at Dec. 31, 2012 | 121,022 | 371 | -1,055 | 71,267 | 50,439 | |||
Ending balance, shares at Dec. 31, 2012 | 37,063,844 | 157,617 | ||||||
Issuance of Class A common stock, net | [1] | 2 | 2 | |||||
Issuance of Class A common stock, net, shares | [1] | 277,335 | ||||||
Repurchase of Class A common stock | -1,706 | -1 | -1,705 | |||||
Repurchase of Class A common stock, shares | -92,763 | 92,763 | ||||||
Record the adjustment to give effect of the tax receivable agreement with HFF Holdings | 494 | 494 | ||||||
Stock compensation and other, net | 4,336 | 4,336 | ||||||
Net income | 51,426 | 51,426 | ||||||
Ending balance at Dec. 31, 2013 | 175,574 | 372 | -2,760 | 76,097 | 101,865 | |||
Ending balance, shares at Dec. 31, 2013 | 37,248,416 | 250,380 | ||||||
Issuance of Class A common stock, net | 9 | -9 | ||||||
Issuance of Class A common stock, net, shares | 626,567 | |||||||
Repurchase of Class A common stock | -6,282 | -6,282 | ||||||
Repurchase of Class A common stock, shares | -197,002 | 197,002 | ||||||
Excess tax benefits from stock-based award activities | 979 | 979 | ||||||
Stock compensation and other, net | 23,054 | 23,054 | ||||||
Dividends paid | -68,166 | 1,027 | -69,193 | |||||
Net income | 61,286 | 61,286 | ||||||
Ending balance at Dec. 31, 2014 | $186,445 | $381 | ($9,042) | $101,148 | $93,958 | |||
Ending balance, shares at Dec. 31, 2014 | 37,677,981 | 447,382 | ||||||
[1] | Includes the effect of the exchange of the Operating Partnerships units by HFF Holdings and the effect of the timing of the tax distribution payments on the ownership of the Operating Partnerships. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $61,286 | $51,426 | $44,105 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock based compensation | 9,820 | 8,302 | 3,442 |
Excess tax benefits from share-based award activities | -979 | -494 | |
Deferred income taxes | 15,049 | 8,830 | -7,659 |
Payable under the tax receivable agreement | -800 | 1,040 | 17,358 |
Depreciation and amortization: | |||
Property and equipment | 2,061 | 1,752 | 1,917 |
Intangibles | 5,769 | 5,048 | 3,850 |
Gain on sale or disposition or impairment of assets | -8,069 | -8,018 | -10,772 |
Mortgage service rights assumed | -4,089 | -2,133 | -2,373 |
Proceeds from sale of mortgage servicing rights | 2,546 | 6,215 | 4,576 |
Increase (decrease) in cash from changes in: | |||
Restricted cash | 80 | ||
Accounts receivable | -369 | 691 | -373 |
Payable to/(receivable from) affiliate | -2 | 124 | 99 |
Payable under the tax receivable agreement | -10,660 | -10,368 | -17,741 |
Mortgage notes receivable | -91,541 | 167,685 | -106,823 |
Net borrowings on warehouse line of credit | 91,541 | -167,685 | 106,823 |
Prepaid taxes, prepaid expenses and other current assets | -515 | -918 | -293 |
Other noncurrent assets | -449 | 205 | 526 |
Accrued compensation and related taxes | 11,316 | 13,691 | 4,913 |
Accounts payable | 709 | 34 | -326 |
Other accrued liabilities | 25,486 | 3,092 | 2,699 |
Other long-term liabilities | 1,503 | 1,285 | 1,043 |
Net cash provided by operating activities | 109,613 | 79,804 | 45,071 |
Investing activities | |||
Purchases of property and equipment | -5,004 | -3,323 | -2,132 |
Net cash used in investing activities | -5,004 | -3,323 | -2,132 |
Financing activities | |||
Payments on long-term debt | -349 | -339 | -340 |
Excess tax benefits from share-based award activities | 979 | 494 | |
Treasury stock | -6,282 | -1,705 | -565 |
Dividends paid | -68,166 | -56,337 | |
Distributions to noncontrolling interest holder | -1,129 | ||
Net cash used in financing activities | -73,818 | -1,550 | -58,371 |
Net increase (decrease) in cash | 30,791 | 74,931 | -15,432 |
Cash and cash equivalents, beginning of period | 201,262 | 126,331 | 141,763 |
Cash and cash equivalents, end of period | 232,053 | 201,262 | 126,331 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | 26,438 | 23,054 | 14,167 |
Cash paid for interest | 2,472 | 1,471 | 3,908 |
Supplemental disclosure of non-cash financing activities | |||
Property acquired under capital leases | 561 | 204 | 353 |
Dividends on unissued restricted stock units | $1,233 | $986 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Organization and Basis of Presentation | 1 | Organization and Basis of Presentation |
Organization | ||
HFF, Inc., a Delaware corporation (the “Company”), through its Operating Partnerships, Holliday Fenoglio Fowler, L.P., a Texas limited partnership (“HFF LP”), and HFF Securities L.P., a Delaware limited partnership and registered broker-dealer (“HFF Securities” and together with HFF LP, the “Operating Partnerships”), is a commercial real estate financial intermediary providing commercial real estate and capital markets services including debt placement, investment sales, equity placements, investment banking and advisory services, loan sales and loan sale advisory services, commercial loan servicing, and capital markets advice and maintains offices in 23 cities in the United States. The Company’s operations are impacted by the availability of equity and/or debt as well as credit and liquidity in the domestic and global capital markets especially in the commercial real estate sector. Significant disruptions or changes in domestic and global capital market flows, as well as credit and liquidity issues in the global and domestic capital markets, regardless of their duration, could adversely affect the supply and/or demand for capital from investors for commercial real estate investments which could have a significant impact on all of the Company’s capital market services revenues. | ||
Initial Public Offering and Reorganization | ||
The Company was formed in November 2006 in connection with a proposed initial public offering of its Class A common stock. On November 9, 2006, the Company filed a registration statement on Form S-1 with the United States Securities and Exchange Commission (the “SEC”) relating to a proposed underwritten initial public offering of 14,300,000 shares of Class A common stock of HFF, Inc. On January 30, 2007, the SEC declared the registration statement on Form S-1 effective and the Company priced 14,300,000 shares for the initial public offering at a price of $18.00 per share. On January 31, 2007, the Company’s common stock began trading on the New York Stock Exchange under the symbol “HF.” | ||
On February 5, 2007, the Company closed its initial public offering of 14,300,000 shares of common stock. Net proceeds from the sale of the stock were $236.4 million, net of $18.0 million of underwriting commissions and $3.0 million of offering expenses. The proceeds of the initial public offering were used to purchase from HFF Holdings LLC, a Delaware limited liability company (“HFF Holdings”), all of the shares of Holliday GP Corp. and purchase from HFF Holdings partnership units representing approximately 39% of each of the Operating Partnerships (including partnership units in the Operating Partnerships held by Holliday GP). HFF Holdings used approximately $56.3 million of its proceeds to repay all outstanding indebtedness under HFF LP’s credit agreement. Accordingly, the Company did not retain any of the proceeds from the initial public offering. | ||
On February 21, 2007, the underwriters exercised their option to purchase an additional 2,145,000 shares of Class A common stock (15% of original issuance) at $18.00 per share. Net proceeds of the overallotment were $35.9 million, net of $2.7 million of underwriting commissions and other expenses. These proceeds were used to purchase HFF Holdings partnership units representing approximately 6.0% of each of the Operating Partnerships. Accordingly the Company did not retain any of the proceeds from this purchase of additional shares. | ||
In addition to cash received for its sale of all of the shares of Holliday GP and approximately 45% of partnership units of each of the Operating Partnerships (including partnership units in the Operating Partnerships held by Holliday GP), HFF Holdings also received, through the issuance of one share of HFF, Inc.’s Class B common stock to HFF Holdings, an exchange right that permitted, subject to certain restrictions, HFF Holdings to exchange interests in the Operating Partnerships for shares of (i) the Company’s Class A common stock (the “Exchange Right”) and (ii) rights under a tax receivable agreement between the Company and HFF Holdings (the “TRA”). See Notes 13 and 14 for further discussion of the tax receivable agreement and the exchange right held by HFF Holdings. | ||
As a result of the reorganization into a holding company structure in connection with the initial public offering, the Company became a holding company through a series of transactions pursuant to a sale and purchase agreement. As a result of the initial public offering and reorganization, the Company’s sole assets are partnership interests in Operating Partnerships (that are held through its wholly-owned subsidiary HFF Partnership Holdings, LLC, a Delaware limited liability company) and all of the shares of Holliday GP, the sole general partner of each of the Operating Partnerships. The transactions that occurred in connection with the initial public offering and reorganization are referred to as the “Reorganization Transactions.” | ||
The Reorganization Transactions were treated, for financial reporting purposes, as a reorganization of entities under common control. As such, these financial statements present the consolidated financial position and results of operations as if HFF, Inc., Holliday GP and the Operating Partnerships (collectively referred to as the Company) were consolidated for all periods presented. Income earned by the Operating Partnerships subsequent to the initial public offering and attributable to the members of HFF Holdings based on their remaining ownership interest (see Note 14) is recorded as noncontrolling interest in the consolidated financial statements. The remaining income attributable to Class A common stockholders is considered in the determination of earnings per share of Class A common stock (see Note 16). | ||
Basis of Presentation | ||
The accompanying consolidated financial statements of the Company as of December 31, 2014 and December 31, 2013 include the accounts of HFF LP, HFF Securities and the Company’s direct wholly-owned subsidiaries, Holliday GP and Partnership Holdings. All significant intercompany accounts and transactions have been eliminated. | ||
The purchase of shares of Holliday GP and partnership units in each of the Operating Partnerships are treated as reorganization under common control for financial reporting purposes. HFF Holdings owned 100% of Holliday GP, HFF LP Acquisition, LLC, a Delaware limited liability company (“Holdings Sub”), and the Operating Partnerships prior to the Reorganization Transactions. The initial purchase of shares of Holliday GP and the initial purchase of units in the Operating Partnerships are accounted for at historical cost, with no change in basis for financial reporting purposes. Accordingly, the net assets of HFF Holdings purchased by the Company are reported in the consolidated financial statements of the Company at HFF Holdings’ historical cost. | ||
As the sole stockholder of Holliday GP (the sole general partner of the Operating Partnerships), HFF, Inc. operates and controls all of the business and affairs of the Operating Partnerships. The Company consolidates the financial results of the Operating Partnerships, and the prior ownership interest of HFF Holdings in the Operating Partnerships is treated as a noncontrolling interest in the Company’s consolidated financial statements. HFF Holdings through its wholly-owned subsidiary (Holdings Sub), and the Company, through its wholly-owned subsidiaries (Partnership Holdings and Holliday GP), were the only partners of the Operating Partnerships following the Reorganization Transactions. As of August 31, 2012, HFF Holdings had exchanged all of its remaining interests in the Operating Partnerships and therefore the Company, through its wholly-owned subsidiaries, became and continues to be the only equity holder of the Operating Partnerships. | ||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies |
Consolidation | ||
HFF, Inc. controls the activities of the Operating Partnerships through its 100% ownership interest of Holliday GP. As such, in accordance with ASC 810 Consolidation, Holliday GP consolidates the Operating Partnerships as Holliday GP is the sole general partner of the Operating Partnerships and the limited partners do not have substantive participating rights or kick out rights. The ownership interest of HFF Holdings in the Operating Partnerships that HFF Holdings held prior to the exchange on August 31, 2012 of its final remaining Operating Partnership units is reflected as a noncontrolling interest in the Company’s consolidated financial statements. | ||
The accompanying consolidated financial statements of the Company include the accounts of HFF LP, HFF Securities and HFF, Inc.’s wholly-owned subsidiaries, Holliday GP and Partnership Holdings. The ownership interest in HFF LP and HFF Securities that HFF Holdings held prior to the exchange on August 31, 2012 of its final Operating Partnership units is treated as a noncontrolling interest in the consolidated financial statements of the Company. All significant intercompany accounts and transactions have been eliminated. | ||
Concentrations of Credit Risk | ||
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions in amounts which at times exceed the FDIC insurance limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any credit risk on cash other than as identified herein. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand and in bank accounts and short-term investments with original maturities of three months or less. At December 31, 2014, our cash and cash equivalents were invested or held in a mix of money market funds and bank demand deposit accounts at two financial institutions. | ||
Revenue Recognition | ||
Capital markets services revenues consist of origination fees, investment sales fees, loan sale fees, placement fees and servicing fees. Origination fees are earned for the placement of debt, equity or structured financing for real estate transactions. Investment sales and loan sales fees are earned for brokering sales of real estate and/or loans. Placement fees are earned by HFF Securities for discretionary and nondiscretionary equity capital raises and other investment banking services. These fees are negotiated between the Company and its clients, generally on a case-by-case basis and are recognized and generally collected at the closing and the funding of the transaction, unless collection of the fee is not reasonably assured, in which case the fee is recognized as collected. The Company’s fee agreements do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the transaction closes. Servicing fees are compensation for providing any or all of the following: collection, remittance, recordkeeping, reporting and other services for either lenders or borrowers on mortgages placed with third-party lenders. Servicing fees are recognized when cash is collected as these fees are contingent upon the borrower making its payments on the loan. | ||
Certain of the Company’s fee agreements provide for reimbursement of transaction-related costs which the Company recognizes as revenue. Certain reimbursements received from clients for out-of-pocket expenses are characterized as revenue in the statement of income rather than as a reduction of expenses incurred. Since the Company is the primary obligor, has supplier discretion, and bears the credit risk for such expenses, the Company records reimbursement revenue for such out-of-pocket expenses. Reimbursement revenue is recognized when billed if collectibility is reasonably assured. Reimbursement revenue is classified as other revenue in the consolidated statements of income. | ||
Mortgage Notes Receivable | ||
The Company is qualified with the Federal Home Loan Mortgage Corporation (Freddie Mac) as a Freddie Mac Multifamily Program Plus® Seller/Servicer. Under this Program, the Company originates mortgages based on commitments from Freddie Mac, and then sells the loans to Freddie Mac approximately one month following the loan origination. The Company recognizes interest income on the accrual basis during this holding period based on the contract interest rate in the loan that will be purchased by Freddie Mac (see Note 8). | ||
The loans are initially recorded and then subsequently sold to Freddie Mac at the Company’s cost. The Company records mortgage loans held for sale at period end at market value in accordance with the provisions of ASC 948, Financial Services-Mortgage Banking, which states that market value for mortgage loans covered by investor commitments shall be based on commitment prices. In the case of loans originated for Freddie Mac, the commitment price is equal to the Company’s cost due to the short time frame from the Company’s origination to the purchase of the loan by the investor, which is approximately 30 days. As a result, the Company does not deem there to be any potential lower of cost or market issues. | ||
Freddie Mac requires HFF LP to meet minimum net worth and liquid assets requirements and to comply with certain other standards. As of December 31, 2014, HFF LP met Freddie Mac’s minimum net worth and liquid assets requirements. | ||
Advertising | ||
Costs associated with advertising are expensed as incurred. Advertising expense was $0.8 million, $0.6 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are included in other operating expenses in the accompanying consolidated statements of income. | ||
Property and Equipment | ||
Property and equipment are recorded at cost. The Company depreciates furniture, office equipment and computer equipment on the straight-line method over three to seven years. Software costs are depreciated using the straight-line method over three years, while capital leases and leasehold improvements are depreciated using the straight-line method over the shorter of the term of the lease or useful life of the asset. | ||
Depreciation expense was $2.1 million, $1.8 million and $1.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Expenditures for routine maintenance and repairs are charged to expense as incurred. Renewals and betterments which substantially extend the useful life of an asset are capitalized. | ||
Leases | ||
The Company leases all of its facilities under operating lease agreements. These lease agreements typically contain tenant improvement allowances. The Company records tenant improvement allowances as a leasehold improvement asset, included in property and equipment, net in the consolidated balance sheet, and a related deferred rent liability and amortizes them on a straight-line basis over the shorter of the term of the lease or useful life of the asset as additional depreciation expense and a reduction to rent expense, respectively. Lease agreements sometimes contain rent escalation clauses or rent holidays, which are recognized on a straight-line basis over the life of the lease in accordance with ASC 840, Leases (ASC 840). Office lease terms generally range from five to ten years. An analysis is performed on all equipment leases to determine whether they should be classified as a capital or an operating lease according to ASC 840. | ||
Computer Software Costs | ||
Certain costs related to the development or purchases of internal-use software are capitalized. Internal computer software costs that are incurred in the preliminary project stage are expensed as incurred. Direct consulting costs as well as payroll and related costs, which are incurred during the development stage of a project are capitalized and amortized using the straight-line method over estimated useful lives of three years when placed into production. | ||
Goodwill | ||
Goodwill of $3.7 million represents the excess of the purchase price over the estimated fair value of the acquired net assets of HFF LP on June 16, 2003. The Company does not amortize goodwill, but evaluates goodwill on at least an annual basis for potential impairment. | ||
Prepaid Compensation Under Employment Agreements | ||
The Company entered into employment agreements with certain employees whereby sign-up bonuses and incentive compensation payments were made during 2014, 2013 and 2012. In most cases, the sign-up bonuses and the incentive compensation are to be repaid to the Company upon voluntary termination by the employee or termination by cause (as defined) by the Company prior to the termination of the employment agreement. The total cost of the employment agreements is being amortized by the straight-line method over the term of the agreements and is included in cost of services on the accompanying consolidated statements of income. As of December 31, 2014 and 2013, there was a total of approximately $1.2 million and $0.6 million of unamortized costs related to HFF LP agreements, respectively. | ||
Transaction Professional Draws | ||
As part of the Company’s overall compensation program, the Company offers a new transaction professional a draw arrangement which generally lasts until such time as a transaction professional’s pipeline of business is sufficient to allow the transaction professional to earn sustainable commissions. This program is intended to provide the transaction professional with a minimal amount of cash flow to allow adequate time for the transaction professional to develop business relationships. Similar to traditional salaries, the transaction professional draws are paid irrespective of the actual fees generated by the transaction professional. At times these transaction professional draws represent the only form of compensation received by the transaction professional. It is not the Company’s policy to seek collection of unearned transaction professional draws under this arrangement. Transaction professionals are also entitled to earn a commission on closed revenue transactions. Commissions are calculated as the commission that would have been earned by the broker under one of the Company’s commission programs, less any amount previously paid to the transaction professional in the form of a draw. As a result, the Company has concluded that transaction professional draws are economically equivalent to commissions paid and, accordingly, charges them to commissions as incurred. These amounts are included in cost of services on the accompanying consolidated statements of income. | ||
Intangible Assets | ||
Intangible assets include mortgage servicing rights under agreements with third-party lenders and costs associated with obtaining a FINRA license. | ||
Servicing rights are capitalized for servicing assumed on loans originated and sold to Freddie Mac with servicing retained based on an allocation of the carrying amount of the loan and the servicing right in proportion to the relative fair values at the date of sale. Servicing rights are recorded at the lower of cost or market. | ||
Mortgage servicing rights do not trade in an active, open market and therefore, do not have readily available observable prices. Since there is no ready market value for the mortgage servicing rights, such as quoted market prices or prices based on sales or purchases of similar assets, the Company determines the fair value of the mortgage servicing rights by estimating the net present value of future cash flows associated with the servicing of the loans. Management makes certain assumptions and judgments in estimating the fair value of servicing rights. The estimate is based on a number of assumptions, including the benefits of servicing (contractual servicing fees and interest on escrow and float balances), the cost of servicing, prepayment rates (including risk of default), an inflation rate, the expected life of the cash flows and the discount rate. The cost of servicing, prepayment rates and discount rates are the most sensitive factors affecting the estimated fair value of the servicing rights. Management estimates a market participant’s cost of servicing by analyzing the limited market activity and considering the Company’s own internal servicing costs. Management estimates the discount rate by considering the various risks involved in the future cash flows of the underlying loans which include the cancellation of servicing contracts, concentration in the life company portfolio and the incremental risk related to large loans. Management estimates the prepayment levels of the underlying mortgages by analyzing recent historical experience. Many of the commercial loans being serviced have financial penalties for prepayment or early payoff before the stated maturity date. As a result, the Company has consistently experienced a low level of loan runoff. The estimated value of the servicing rights is impacted by changes in these assumptions. | ||
Effective January 1, 2007, the Company adopted the provisions of ASC 860, Transfers and Servicing (ASC 860). ASC 860 requires an entity to recognize a servicing asset or servicing liability at fair value each time it undertakes an obligation to service a financial asset by entering into a servicing contract, regardless of whether explicit consideration is exchanged. The statement also permits a company to choose to either subsequently measure servicing rights at fair value and to report changes in fair value in earnings, or to retain the amortization method whereby servicing rights are recorded at the lower of cost or fair value and are amortized over their expected life. The Company retained the amortization method upon adoption of ASC 860, and began recognizing the fair value of servicing contracts involving no consideration assumed after January 1, 2007. The fair value of servicing rights assumed without consideration and recognized as intangible assets and income in 2014 and 2013 was $4.1 million and $2.1 million, respectively. These amounts are recorded in Interest and other income, net in the consolidated statements of income. | ||
HFF Securities has recognized an intangible asset in the amount of $0.1 million for the costs of obtaining and holding a FINRA license as a broker-dealer. The license is determined to have an indefinite useful economic life and is, therefore, not being amortized. | ||
The Company evaluates amortizable intangible assets on an annual basis, or more frequently if circumstances so indicate, for potential impairment. Indicators of impairment monitored by management include a decline in the level of serviced loans. | ||
Earnings Per Share | ||
The Company computes net income per share in accordance with ASC 260, Earnings Per Share. Basic net income per share is computed by dividing income available to Class A common stockholders by the weighted average of common shares outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities (see Note 16). | ||
Firm and Office Profit Participation Plans | ||
The Company’s firm and office profit participation plans provide for payments in cash and share-based awards if certain performance targets are achieved during the year. The expense recorded for these plans is estimated during the year based on actual results at each interim reporting date and an estimate of future results for the remainder of the year. The plans allow for payments to be made in both cash and share-based awards, the composition of which is determined in the first calendar quarter of the subsequent year. Cash and share-based awards issued under these plans are subject to vesting conditions over the subsequent year, such that the total expense measured for these plans is recorded over the period from the beginning of the performance year through the vesting date. Based on an accounting policy election, the expense associated with the share-based component of the estimated incentive payout is recognized before the grant date of the stock due to the fact that the terms of the profit participation plans have been approved by the Company’s board of directors and the employees of the Company understand the requirements to earn the award. Expense associated with the stock component of estimated incentive payouts under the Company’s firm profit participation bonus plan or office profit participation bonus plans that are anticipated to be paid in respect of the applicable year is recorded as incentive compensation expense within personnel expenses in the Company’s consolidated statements of income during the year to which the expense relates. Following the award, if any, of the related incentive payout, the stock component expense is reclassified as stock compensation costs within personnel expenses. | ||
Stock Based Compensation | ||
ASC 718, Compensation — Stock Compensation (ASC 718), requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors, including employee stock options and other forms of equity compensation based on estimated fair values. The Company estimates the grant-date fair value of stock options using the Black-Scholes option-pricing model. The fair value of the restricted stock awards is calculated as the market value of the Company’s Class A common stock on the date of grant. The Company also has restricted stock awards that are accounted for as liability awards and require remeasurement to fair value at the end of each reporting period. The Company’s awards are subject to graded or cliff vesting. Compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award. Forfeiture assumptions for all stock-based payment awards are evaluated on a quarterly basis and updated as necessary. | ||
Income Taxes | ||
HFF, Inc. and Holliday GP are corporations, and the Operating Partnerships are limited partnerships. The Operating Partnerships are subject to state and local income taxes. Income and expenses of the Operating Partnerships have been passed through and are reported on the individual tax returns of the members of HFF Holdings and on the corporate income tax returns of HFF, Inc. and Holliday GP. Income taxes shown on the Company’s consolidated statements of income reflect federal income taxes of the corporation and business and corporate income taxes in various jurisdictions. These taxes are assessed on the net income of the corporations, including its share of the Operating Partnerships’ net income. | ||
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized in income in the period of the tax rate change. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||
Cost of Services | ||
The Company considers personnel expenses directly attributable to providing services to its clients, such as salaries, commissions and transaction bonuses to transaction professionals and analysts, and certain purchased services to be directly attributable to the generation of capital markets services revenue and has classified these expenses as cost of services in the consolidated statements of income. | ||
Segment Reporting | ||
The Company operates in one reportable segment, the commercial real estate financial intermediary segment and offers debt placement, investment sales, loan sales, loan servicing, equity placement and investment banking services through its 23 offices. The results of each office have been aggregated for segment reporting purposes as they have similar economic characteristics and provide similar services to a similar class of customer. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Treasury Stock | ||
The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. | ||
New Accounting Pronouncements Adopted | ||
In January 2014, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) that require an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement in this manner is available under the tax law. The adoption of these changes had no impact on the consolidated financial statements. | ||
Pending Accounting Pronouncements | ||
In May 2014, the FASB issued changes to revenue recognition with customers. This update provides a five-step analysis of transactions to determine when and how revenue is recognized. An entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for the Company beginning in fiscal year 2017. This update may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. | ||
Stock_Compensation
Stock Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock Compensation | 3 | Stock Compensation | |||||||||||||||
ASC 718 requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors including employee stock options and other forms of equity compensation based on estimated fair values. The Company estimates the grant-date fair value of stock options using the Black-Scholes option-pricing model. For stock options, the Company uses the simplified method to determine the expected term of the option. Expected volatility used to value stock options is based on the Company’s historical volatility. The fair value of the restricted stock awards is calculated as the market value of the Company’s Class A common stock on the date of grant. The Company also had restricted stock awards that were accounted for as liability awards and required remeasurement to fair value at the end of each reporting period. These liability awards fully vested on March 1, 2014. The Company’s awards are subject to graded or cliff vesting. Compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award. Forfeiture assumptions for all stock-based payment awards are evaluated on a quarterly basis and updated as necessary. A summary of the cost of the awards granted during the years ended December 31, 2014 and 2013 is provided below. | |||||||||||||||||
Omnibus Incentive Compensation Plan | |||||||||||||||||
Prior to the effective date of the initial public offering, the stockholder of HFF, Inc. and the Board of Directors adopted the HFF, Inc. 2006 Omnibus Incentive Compensation Plan (the “Plan”). The Plan authorizes the grant of deferred stock, restricted stock, stock options, stock appreciation rights, stock units, stock purchase rights and cash-based awards. Upon the effective date of the registration statement, grants were awarded under the Plan to certain employees and non-employee members of the board of directors. The Plan imposes limits on the awards that may be made to any individual during a calendar year. The number of shares available for awards under the terms of the Plan is 3,500,000 (subject to stock splits, stock dividends and similar transactions). For a full copy of the Plan, see Exhibit 10.9 to the Registration Statement on Form S-1 filed with the SEC on January 8, 2007. | |||||||||||||||||
The stock compensation cost that has been charged against income for the years ended December 31, 2014, 2013 and 2012 was $9.8 million, $8.3 million and $3.4 million, respectively, which is recorded in “Personnel” expenses in the consolidated statements of income. At December 31, 2014, there was approximately $17.7 million of unrecognized compensation cost related to share based awards. | |||||||||||||||||
The fair value of stock options is estimated on the grant date using a Black-Scholes option-pricing model. The following table presents the weighted average assumptions for the year ended December 31, 2014: | |||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 63.9 | % | |||||||||||||||
Risk-free interest rate | 3.2 | % | |||||||||||||||
Expected life (in years) | 6.2 | ||||||||||||||||
The following table presents options outstanding for the years ended December 31, 2012, 2013 and 2014 and their related weighted average exercise price, weighted average remaining contractual term and intrinsic value: | |||||||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (in ‘000’s) | |||||||||||||||
Term | |||||||||||||||||
Balance at January 1, 2012 | 51,586 | $ | 8.92 | 7.0 years | $ | 73 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2012 | 51,586 | $ | 8.92 | 6.0 years | $ | 308 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2013 | 51,586 | $ | 8.92 | 5.0 years | $ | 925 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | 51,586 | $ | 8.92 | 4.0 years | $ | 1,393 | |||||||||||
A summary of option activity and related information during 2012, 2013 and 2014 was as follows: | |||||||||||||||||
Options | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
Nonvested at January 1, 2012 | 15,122 | $ | 6.1 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (11,017 | ) | 5.55 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Nonvested at December 31, 2012 | 4,105 | $ | 7.58 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (4,105 | ) | 7.58 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Nonvested at December 31, 2013 and 2014 | — | $ | 0 | ||||||||||||||
No options were granted or exercised during either of the years ended December 31, 2014 and 2013. The option exercises will be settled through the issuance of new shares of Class A common stock. | |||||||||||||||||
A summary of restricted stock units (“RSU”) activity and related information during the period was as follows: | |||||||||||||||||
RSU’s with no | RSU’s with graded | Total | |||||||||||||||
vesting period | or cliff vesting | ||||||||||||||||
period | |||||||||||||||||
Balance at January 1, 2012 | 90,833 | 481,095 | 571,928 | ||||||||||||||
Granted | 20,161 | 238,955 | 259,116 | ||||||||||||||
Dividend on unissued RSU’s | 11,332 | 57,941 | 69,273 | ||||||||||||||
Converted to common stock | (4,822 | ) | (117,228 | ) | (122,050 | ) | |||||||||||
Forfeited or expired | — | (60,043 | ) | (60,043 | ) | ||||||||||||
Balance at December 31, 2012 | 117,504 | 600,720 | 718,224 | ||||||||||||||
Granted | 14,967 | 221,469 | 236,436 | ||||||||||||||
Converted to common stock | (5,183 | ) | (272,152 | ) | (277,335 | ) | |||||||||||
Forfeited or expired | — | (2,245 | ) | (2,245 | ) | ||||||||||||
Balance at December 31, 2013 | 127,288 | 547,792 | 675,080 | ||||||||||||||
Granted | 12,877 | 940,007 | 952,884 | ||||||||||||||
Dividend on unissued RSU’s | 7,900 | 34,208 | 42,108 | ||||||||||||||
Converted to common stock | (4,878 | ) | (621,689 | ) | (626,567 | ) | |||||||||||
Forfeited or expired | — | — | — | ||||||||||||||
Balance at December 31, 2014 | 143,187 | 900,318 | 1,043,505 | ||||||||||||||
As of December 31, 2014, there were 1,043,505 RSU’s outstanding. The fair value of vested RSU’s was $5.4 million and $3.5 million at December 31, 2014 and December 31, 2013, respectively. The RSU exercises will be settled through the issuance of new shares of Class A common stock. On December 14, 2010 and March 1, 2013, the Company granted RSU’s that were treated as liability awards, which requires the remeasurement of fair value at the end of each reporting period until settlement. These Liability awards cliff vested on March 1, 2014 with a fair value of $12.7 million for which 398,084 shares of Class A common stock were issued. | |||||||||||||||||
The weighted average remaining contractual term of the nonvested restricted stock units is 3.5 years as of December 31, 2014. | |||||||||||||||||
On February 18, 2015, the board of directors for the Company granted 250,000 restricted stock units with a fair value of $9.3 million which vest over a five year period with 25% vesting increments starting on the second anniversary of the grant. Additionally, on February 18, 2015, the board of directors for the Company granted 211,597 restricted stock units with a fair value of $7.9 million in connection with the 2014 office and firm profit participation plans. 68,194 of these restricted stock units will vest in 2015. | |||||||||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 4 | Property and Equipment | |||||||
Property and equipment consist of the following (in thousands): | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 8,035 | $ | 5,066 | |||||
Computer equipment | 1,072 | 970 | |||||||
Capitalized software costs | 497 | 530 | |||||||
Leasehold improvements | 9,523 | 7,786 | |||||||
Subtotal | 19,127 | 14,352 | |||||||
Less accumulated depreciation and amortization | (8,954 | ) | (7,766 | ) | |||||
$ | 10,173 | $ | 6,586 | ||||||
At December 31, 2014 and 2013, the Company has recorded capital leased office equipment within furniture and equipment of $1.4 million and $1.1 million, respectively, including accumulated amortization of $0.6 million and $0.7 million, respectively, which is included within depreciation and amortization expense on the accompanying consolidated statements of income. See Note 7 for discussion of the related capital lease obligations. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets | 5 | Intangible Assets | |||||||||||||||||||||||
The Company’s intangible assets are summarized as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Mortgage servicing rights | $ | 41,041 | $ | (20,494 | ) | $ | 20,547 | $ | 34,100 | $ | (17,424 | ) | $ | 16,676 | |||||||||||
Unamortizable intangible assets: | |||||||||||||||||||||||||
FINRA license | 100 | — | 100 | 100 | — | 100 | |||||||||||||||||||
Total intangible assets | $ | 41,141 | $ | (20,494 | ) | $ | 20,647 | $ | 34,200 | $ | (17,424 | ) | $ | 16,776 | |||||||||||
As of December 31, 2014, 2013 and 2012, the Company serviced $39.3 billion, $33.1 billion and $31.3 billion, respectively, of commercial loans. The Company earned $17.0 million, $15.8 million and $14.0 million in servicing fees and interest on float and escrow balances for the years ended December 31, 2014, 2013 and 2012, respectively. These revenues are recorded as capital markets services revenues in the consolidated statements of income. | |||||||||||||||||||||||||
The total commercial loan servicing portfolio includes loans for which there is no corresponding mortgage servicing right recorded on the balance sheet, as these servicing rights were assumed prior to January 1, 2007 and involved no initial consideration paid by the Company. The Company has recorded mortgage servicing rights of $20.5 million and $16.7 million on $34.5 billion and $27.0 billion, respectively, of the total loans serviced as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
The Company stratifies its servicing portfolio based on the type of loan, including life company loans, commercial mortgage backed securities (CMBS), Freddie Mac and limited-service life company loans. | |||||||||||||||||||||||||
Changes in the carrying value of mortgage servicing rights for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||
Category | 12/31/13 | Capitalized | Amortized | Sold / Transferred | 12/31/14 | ||||||||||||||||||||
Freddie Mac | $ | 3,730 | $ | 6,205 | $ | (1,571 | ) | $ | (3,165 | ) | $ | 5,199 | |||||||||||||
CMBS | 10,978 | 2,208 | (2,676 | ) | 2,511 | 13,021 | |||||||||||||||||||
Life company | 1,537 | 1,638 | (1,262 | ) | — | 1,913 | |||||||||||||||||||
Life company — limited | 431 | 243 | (260 | ) | — | 414 | |||||||||||||||||||
Total | $ | 16,676 | $ | 10,294 | $ | (5,769 | ) | $ | (654 | ) | $ | 20,547 | |||||||||||||
Category | 12/31/12 | Capitalized | Amortized | Sold / Transferred | 12/31/13 | ||||||||||||||||||||
Freddie Mac | $ | 7,641 | $ | 3,098 | $ | (1,310 | ) | $ | (5,699 | ) | $ | 3,730 | |||||||||||||
CMBS | 7,838 | 792 | (2,036 | ) | 4,384 | 10,978 | |||||||||||||||||||
Life company | 2,021 | 1,013 | (1,497 | ) | — | 1,537 | |||||||||||||||||||
Life company — limited | 299 | 328 | (196 | ) | — | 431 | |||||||||||||||||||
Total | $ | 17,799 | $ | 5,231 | $ | (5,039 | ) | $ | (1,315 | ) | $ | 16,676 | |||||||||||||
Amounts capitalized represent mortgage servicing rights retained upon the sale of originated loans to Freddie Mac and mortgage servicing rights acquired without the exchange of initial consideration. The Company recorded mortgage servicing rights retained upon the sale of originated loans to Freddie Mac of $6.2 million and $3.1 million on $2.0 billion and $1.1 billion of loans, respectively, during the years ended December 31, 2014 and 2013, respectively. The Company recorded mortgage servicing rights acquired without the exchange of initial consideration on the CMBS and Life company tranches of $4.1 million and $2.1 million on $8.0 billion and $4.9 billion of loans, respectively, during the years ended December 31, 2014 and 2013. These amounts are recorded in interest and other income, net in the consolidated statements of income. During each of 2014 and 2013, certain Freddie Mac loans were securitized and the Company sold the cashiering portion of these Freddie Mac mortgage servicing rights. While the Company transferred the risks and rewards of ownership of the cashiering portion of the relevant mortgage servicing rights, the Company continues to perform limited servicing activities on these securitized loans. Therefore, the remaining servicing rights were transferred to the CMBS servicing tranche. The net result of these transactions was the Company recording a gain in each of the years ended December 31, 2014 and 2013 of $1.9 million and $4.9 million, respectively, within interest and other income, net in the consolidated income statements. The Company also received securitization compensation in relation to the sale of the cashiering portion of certain Freddie Mac mortgage servicing rights in the years ended December 31, 2014 and 2013 of $2.6 million and $4.8 million, respectively. The securitization compensation is recorded within interest and other income, net in the consolidated statements of income. | |||||||||||||||||||||||||
Amortization expense related to intangible assets was $5.8 million, $5.0 million, and $3.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is reported in depreciation and amortization in the consolidated statements of income. | |||||||||||||||||||||||||
Estimated amortization expense for the next five years is as follows (in thousands): | |||||||||||||||||||||||||
2015 | $ | 5,111 | |||||||||||||||||||||||
2016 | 4,226 | ||||||||||||||||||||||||
2017 | 3,175 | ||||||||||||||||||||||||
2018 | 2,367 | ||||||||||||||||||||||||
2019 | 1,826 | ||||||||||||||||||||||||
The weighted-average remaining life of the mortgage servicing rights intangible asset was 6.3 and 5.8 years at December 31, 2014 and 2013, respectively. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurement | 6 | Fair Value Measurement | |||||||||||||||
ASC Topic 820, Fair Value Measurement (ASC 820) establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: Level 1 inputs which are quoted market prices in active markets for identical assets or liabilities; Level 2 inputs which are observable market-based inputs or unobservable inputs corroborated by market data for the asset or liability; and Level 3 inputs which are unobservable inputs based on our own assumptions that are not corroborated by market data. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
In May 2011, the Financial Accounting Standards Board issued an accounting pronouncement which amends the fair value measurement and disclosure requirements to achieve common disclosure requirements between GAAP and International Financial Reporting Standards. The accounting pronouncement requires certain disclosures about transfers between Level 1 and Level 2 of the fair value hierarchy, sensitivity of fair value measurements categorized within Level 3 of the fair value hierarchy, and categorization by level of items that are reported at cost but are required to be disclosed at fair value. The adoption of this pronouncement had no impact on the Company’s consolidated financial statements. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company did not have any assets or liabilities recognized at fair value on a recurring basis. | |||||||||||||||||
In accordance with generally accepted accounting principles, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. These assets may include mortgage servicing rights and mortgage notes receivable. The mortgage servicing rights were not remeasured at fair value during 2014 as the Company continues to utilize the amortization method under ASC 860 and the fair value of the mortgage servicing rights exceeds the carrying value at December 31, 2014. See Note 5 for further discussion on the assumptions used in valuing the mortgage servicing rights and impact on earnings during the period. The fair value of the mortgage notes receivable was based on prices observable in the market for similar loans and equaled carrying value at December 31, 2014 and 2013. Therefore, no lower of cost or fair value adjustment was required. | |||||||||||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2014 (in thousands): | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 185,128 | $ | — | $ | 185,128 | $ | — | |||||||||
Mortgage servicing rights | 20,547 | — | — | 25,972 | |||||||||||||
Total nonrecurring fair value measurements | $ | 205,675 | $ | — | $ | 185,128 | $ | 25,972 | |||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 93,587 | $ | — | $ | 93,587 | $ | — | |||||||||
Mortgage servicing rights | 16,676 | — | — | 20,258 | |||||||||||||
Total nonrecurring fair value measurements | $ | 110,263 | $ | — | $ | 93,587 | $ | 20,258 | |||||||||
Mortgage servicing rights do not trade in an active, open market with readily available observable prices. Since there is no ready market value for the mortgage servicing rights, such as quoted market prices or prices based on sales or purchases of similar assets, the Company determines the fair value of the mortgage servicing rights by estimating the present value of future cash flows associated with servicing the loans. Management makes certain assumptions and judgments in estimating the fair value of servicing rights. The estimate is based on a number of assumptions, including the benefits of servicing (contractual servicing fees and interest on escrow and float balances), the cost of servicing, prepayment rates (including risk of default), an inflation rate, the expected life of the cash flows and the discount rate. The significant assumptions utilized to value servicing rights as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life of cash flows | 3 years to 11 years | 3 years to 10 years | |||||||||||||||
Discount rate(1) | 14% to 20% | 15% to 20% | |||||||||||||||
Prepayment rate | 0% to 8% | 0% to 8% | |||||||||||||||
Inflation rate | 2% | 2% | |||||||||||||||
Cost of service per loan | $1,600 to $4,189 | $1,600 to $4,421 | |||||||||||||||
-1 | Reflects the time value of money and the risk of future cash flows related to the possible cancellation of servicing contracts, transferability restrictions on certain servicing contracts, concentration in the life company portfolio and large loan risk. | ||||||||||||||||
The above assumptions are subject to change based on management’s judgments and estimates of future changes in the risks related to future cash flows and interest rates. Changes in these factors would cause a corresponding increase or decrease in the prepayment rates and discount rates used in our valuation model. | |||||||||||||||||
FASB ASC Topic 825, Financial Instruments also requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments, excluding those included in the preceding fair value tables above, are as follows: | |||||||||||||||||
Cash and Cash Equivalents: These balances include cash and cash equivalents with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments; these are considered Level 1 fair values. | |||||||||||||||||
Warehouse line of credit: Due to the short-term nature and variable interest rates of this instrument, fair value approximates carrying value; these are considered Level 2 fair values. | |||||||||||||||||
Capital_Lease_Obligations
Capital Lease Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Capital Lease Obligations | 7 | Capital Lease Obligations | |||||||
Capital lease obligations consist of the following at December 31, 2014 and 2013 (in thousands): | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
Capital lease obligations | $ | 766 | $ | 443 | |||||
Less current maturities | 337 | 258 | |||||||
$ | 429 | $ | 185 | ||||||
Capital lease obligations consist primarily of office equipment leases that expire at various dates through April 2017. A summary of future minimum lease payments under capital leases at December 31, 2014 is as follows (in thousands): | |||||||||
2015 | $ | 337 | |||||||
2016 | 286 | ||||||||
2017 | 143 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
$ | 766 | ||||||||
Warehouse_Line_of_Credit
Warehouse Line of Credit | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Warehouse Line of Credit | 8 | Warehouse Line of Credit |
HFF LP maintains two uncommitted warehouse revolving lines of credit for the purpose of funding the Freddie Mac mortgage loans that it originates in connection with its services as a Freddie Mac Multifamily Program Plus® Seller/Servicer. The Company is a party to an uncommitted $350 million financing arrangement with PNC Bank, N.A. (PNC) and an uncommitted $125 million financing arrangement with The Huntington National Bank (Huntington). In January 2015, the $350 million financing arrangement with PNC was increased by $500 million for a period of 15 days, at which time the arrangement reverts back to $350 million. Additionally, on January 27, 2015, HFF LP entered into an agreement with Huntington to increase the uncommitted financing agreement by $100 million for a period of the lesser of 60 days after the first advance or May 1, 2015. | ||
Each funding is separately approved on a transaction-by-transaction basis and is collateralized by a loan and mortgage on a multifamily property that is ultimately purchased by Freddie Mac. The PNC and Huntington National Bank financing arrangements are only for the purpose of supporting the Company’s participation in Freddie Mac’s Program Plus Seller Servicer program and cannot be used for any other purpose. As of December 31, 2014 and December 31, 2013, HFF LP had $185.1 million and $93.6 million, respectively, outstanding on the warehouse lines of credit and a corresponding amount of mortgage notes receivable. Interest on the warehouse lines of credit is at the 30-day LIBOR rate (0.15% and 0.17% at December 31, 2014 and December 31, 2013, respectively) plus a spread. HFF LP is also paid interest on its loans secured by multifamily loans at the rate in the Freddie Mac note. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Lease Commitments | 9 | Lease Commitments | |||
The Company leases various corporate offices (which leases sometimes include parking spaces) and office equipment under noncancelable operating leases. These leases have initial terms of one to ten years. Several of the leases have termination clauses whereby the term may be reduced by two to seven years upon prior notice and payment of a termination fee by the Company. Total rental expense charged to operations was $7.8 million, $7.1 million, and $6.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is recorded within occupancy expense in the consolidated statements of income. | |||||
Future minimum rental payments for the next five years under operating leases with noncancelable terms in excess of one year and without regard to early termination provisions are as follows (in thousands): | |||||
2015 | $ | 7,477 | |||
2016 | 6,460 | ||||
2017 | 6,323 | ||||
2018 | 5,911 | ||||
2019 | 5,238 | ||||
Thereafter | 10,040 | ||||
$ | 41,449 | ||||
The Company subleases certain office space to subtenants, some of which may be canceled at any time. The rental income received from these subleases is included as a reduction of occupancy expenses in the accompanying consolidated statements of income. | |||||
The Company also leases certain office equipment under capital leases that expire at various dates through 2017. See Note 4 and Note 7 for further description of the assets and related obligations recorded under these capital leases at December 31, 2014 and 2013, respectively. | |||||
HFF Holdings is not an obligor under, nor does it guarantee, any of the Company’s leases. | |||||
Retirement_Plan
Retirement Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation and Retirement Disclosure [Abstract] | ||
Retirement Plan | 10 | Retirement Plan |
The Company maintains a retirement savings plan for all eligible employees, in which employees may make deferred salary contributions up to the maximum amount allowable by the IRS. After-tax contributions may also be made up to 50% of compensation. The Company makes matching contributions equal to 50% of the first 6% of both deferred and after-tax salary contributions, up to a maximum of $5,000. The Company’s contributions charged to expense for the plan were $2.1 million, $1.9 million, and $1.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Servicing
Servicing | 12 Months Ended | |
Dec. 31, 2014 | ||
Transfers and Servicing [Abstract] | ||
Servicing | 11 | Servicing |
The Company services commercial real estate loans for investors. The servicing portfolio totaled $39.3 billion, $33.1 billion, and $31.3 billion at December 31, 2014, 2013 and 2012, respectively. | ||
In connection with its servicing activities, the Company holds funds in escrow for the benefit of mortgagors for hazard insurance, real estate taxes and other financing arrangements. At December 31, 2014, 2013 and 2012, the funds held in escrow totaled $240.3 million, $211.1 million and $172.9 million, respectively. These funds, and the offsetting obligations, are not presented in the Company’s financial statements as they do not represent assets and liabilities of the Company. Pursuant to the requirements of the various investors for which the Company services loans, the Company maintains bank accounts, holding escrow funds, which have balances in excess of the FDIC insurance limit. The fees earned on these escrow funds are reported in capital markets services revenue in the consolidated statements of income. |
Legal_Proceedings
Legal Proceedings | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Legal Proceedings | 12 | Legal Proceedings |
The Company is party to various litigation matters, in most cases involving ordinary course and routine claims incidental to its business. The Company cannot estimate with certainty its ultimate legal and financial liability with respect to any pending matters. In accordance with ASC 450, Contingencies, a reserve for estimated losses is recorded when the amount is probable and can be reasonably estimated. However, the Company does not believe, based on examination of such pending matters, that a material loss related to these matters is reasonably possible. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | 13 | Income Taxes | |||||||||||||||
Income tax expense includes current and deferred taxes as follows (in thousands): | |||||||||||||||||
Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||
Federal | $ | 22,439 | $ | 13,102 | $ | 35,541 | |||||||||||
State | 4,738 | 1,947 | 6,685 | ||||||||||||||
$ | 27,177 | $ | 15,049 | $ | 42,226 | ||||||||||||
Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Federal | $ | 21,745 | $ | 8,146 | $ | 29,891 | |||||||||||
State | 4,003 | 684 | 4,687 | ||||||||||||||
$ | 25,748 | $ | 8,830 | $ | 34,578 | ||||||||||||
The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the effective tax rate on net income is as follows for the year ended December 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Pre-tax book income | $ | 103,512 | $ | 86,004 | |||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income Tax expense | Rate | Rate | |||||||||||||||
Taxes computed at federal rate | $ | 36,229 | 35 | % | $ | 30,101 | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 4,512 | 4.4 | % | 3,967 | 4.6 | % | |||||||||||
Effect of deferred tax rate change | 776 | 0.7 | % | (822 | ) | (0.9 | )% | ||||||||||
Change in income tax benefit / payable to stockholder | (280 | ) | (0.3 | )% | 364 | 0.4 | % | ||||||||||
Return to provision adjustment | (49 | ) | (0.0 | )% | (285 | ) | (0.3 | )% | |||||||||
Compensation limitation | — | 0 | % | 525 | 0.6 | % | |||||||||||
Meals and entertainment | 1,017 | 1 | % | 719 | 0.8 | % | |||||||||||
Other | 21 | 0 | % | 9 | 0 | % | |||||||||||
$ | 42,226 | 40.8 | % | $ | 34,578 | 40.2 | % | ||||||||||
Deferred income tax assets and liabilities consist of the following at December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Section 754 election tax basis step-up | $ | 145,151 | $ | 158,229 | |||||||||||||
Tenant improvements | 2,800 | 2,522 | |||||||||||||||
Net operating loss carryforward | 36 | 379 | |||||||||||||||
Restricted stock units | 3,762 | 5,271 | |||||||||||||||
Compensation | 5,054 | 3,805 | |||||||||||||||
Intangible asset | 470 | 510 | |||||||||||||||
Tax credits | — | 123 | |||||||||||||||
Other | 398 | 348 | |||||||||||||||
Deferred income tax asset | 157,671 | 171,187 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Goodwill | (1,276 | ) | (1,277 | ) | |||||||||||||
Servicing rights | (7,815 | ) | (6,332 | ) | |||||||||||||
Deferred rent | (1,944 | ) | (1,892 | ) | |||||||||||||
Investment in partnership | (586 | ) | (587 | ) | |||||||||||||
Deferred income tax liability | (11,621 | ) | (10,088 | ) | |||||||||||||
Net deferred income tax asset | $ | 146,050 | $ | 161,099 | |||||||||||||
The primary deferred tax asset represents a tax basis step-up election under Section 754 of the Internal Revenue Code, as amended (“Section 754”), made by HFF, Inc. relating to the initial purchase of units of the Operating Partnerships in connection with the Reorganization Transactions and a tax basis step-up on subsequent exchanges of Operating Partnership units for the Company’s Class A common stock since the date of the Reorganization Transactions. As a result of the step-up in basis from these transactions, the Company is entitled to annual future tax benefits in the form of amortization for income tax purposes. The annual pre-tax benefit on the Section 754 basis step up and past payments under the tax receivable agreement was approximately $32.6 million at December 31, 2014. To the extent that the Company does not have sufficient taxable income in a year to fully utilize this annual deduction, the unused benefit is recharacterized as a net operating loss and can then be carried back two years or carried forward for twenty years. The Company measured the deferred tax asset based on the estimated income tax effects of the increase in the tax basis of the assets owned by the Operating Partnerships utilizing the enacted tax rates at the date of the transaction. In accordance with ASC 740, the tax effects of transactions with shareholders that result in changes in the tax basis of a company’s assets and liabilities are recognized in equity. The Company initially recorded a valuation allowance on a portion of the recognized deferred tax assets recorded in connection with the Reorganization Transactions and the subsequent exercise of exchange rights due to the uncertainty in the timing and level of tax benefits that would be realized when payments are made to HFF Holdings under the Tax Receivable Agreement (see further discussion below). Prior to the fourth quarter of 2012, a valuation allowance was established on a portion of the deferred tax assets from the Section 754 step up. In the fourth quarter of 2012, the Company determined based on its analysis that the valuation allowance on the deferred tax assets was no longer required and therefore reversed this allowance. Changes in the measurement of the deferred tax assets or the valuation allowance due to changes in the enacted tax rates upon the finalization of the income tax returns for the year of the exchange transaction are recorded in equity. All subsequent changes in the measurement of the deferred tax assets due to changes in the enacted tax rates or changes in the valuation allowance are recorded as a component of income tax expense. | |||||||||||||||||
In evaluating the realizability of the deferred tax assets, management makes estimates and judgments regarding the level and timing of future taxable income, including projecting future revenue growth and changes to the cost structure. In order to realize the anticipated 2015 pre-tax benefit associated with the Section 754 basis step up and payments under the tax receivable agreement of approximately $32.6 million, the Company needs to generate approximately $287 million in revenue each year, assuming a constant cost structure. In the event that the Company cannot realize the anticipated 2015 pre-tax benefit of $32.6, the shortfall becomes a net operating loss that can be carried back two years to offset prior years’ taxable income or carried forward 20 years to offset future taxable income. Based on this analysis and other quantitative and qualitative factors, management believes that it is currently more likely than not that the Company will be able to generate sufficient taxable income to realize the net deferred tax assets resulting from the basis step up transactions (initial sale of units in the Operating Partnerships and subsequent exchanges of Operating Partnership units since the date of the Reorganization Transactions). The Company has no federal net operating losses at December 31, 2014. The state tax effected net operating loss carryforwards of $36,000 at December 31, 2014 represent the cumulative excess of the Section 754 annual tax deductions over taxable income for 2014 and prior years. The state net operating loss carryforwards expire in 2028. | |||||||||||||||||
The Company has analyzed the need for a reserve for unrecognized tax benefits under ASC 740-10 and has determined that any such tax benefits do not have a material impact on the financial statements. It is not expected that there will be a significant increase or decrease in the amount of unrecognized tax benefits within the next 12 months. With few exceptions, the Company is no longer subject to US federal or state and local tax examinations by tax authorities before 2011. | |||||||||||||||||
The Company will recognize interest and penalties related to unrecognized tax benefits in interest and other income, net in the consolidated statements of income. There were no interest or penalties recorded in the twelve months ended December 31, 2014 or December 31, 2013. | |||||||||||||||||
Tax Receivable Agreement | |||||||||||||||||
In connection with the Reorganization Transactions, HFF LP and HFF Securities made an election under Section 754 for 2007 and intend to keep that election in effect for each taxable year in which an exchange of Operating Partnership partnership units for shares of the Company’s Class A common stock occurred. The initial sale as a result of the offering and the subsequent exchanges of partnership units increased the tax basis of the assets owned by HFF LP and HFF Securities to their fair market value. This increase in tax basis allows the Company to reduce the amount of future tax payments to the extent that the Company has future taxable income. As a result of the increase in tax basis, the Company is entitled to future tax benefits of $145.2 million and has recorded this amount as a deferred tax asset on its consolidated balance sheet. The Company has updated its estimate of these future tax benefits based on the changes to the estimated annual effective tax rate for 2014 and 2013. The Company is obligated, however, pursuant to its Tax Receivable Agreement with HFF Holdings, to pay to HFF Holdings, 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of these increases in tax basis and as a result of certain other tax benefits arising from the Company entering into the tax receivable agreement and making payments under that agreement. For purposes of the tax receivable agreement, actual cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of HFF LP and HFF Securities as a result of the initial sale and later exchanges and had the Company not entered into the tax receivable agreement. | |||||||||||||||||
The Company accounts for the income tax effects and corresponding tax receivable agreement effects as a result of the initial purchase and the sale of units of the Operating Partnerships in connection with the Reorganization Transactions and exchanges of Operating Partnership units for the Company’s Class A shares by recognizing a deferred tax asset for the estimated income tax effects of the increase in the tax basis of the assets owned by the Operating Partnerships, based on enacted tax rates at the date of the transaction, less any tax valuation allowance the Company believes is required. In accordance with ASC 740, the tax effects of transactions with shareholders that result in changes in the tax basis of a company’s assets and liabilities will be recognized in equity. If transactions with shareholders result in the recognition of deferred tax assets from changes in the company’s tax basis of assets and liabilities, the valuation allowance initially required upon recognition of these deferred assets will be recorded in equity. Subsequent changes in enacted tax rates or any valuation allowance are recorded as a component of income tax expense. | |||||||||||||||||
The Company believes it is more likely than not that it will realize the benefit represented by the deferred tax asset, and, therefore, the Company recorded 85% of this estimated amount of the increase in deferred tax assets, as a liability to HFF Holdings under the tax receivable agreement and the remaining 15% of the increase in deferred tax assets directly in additional paid-in capital in stockholders’ equity. | |||||||||||||||||
While the actual amount and timing of payments under the tax receivable agreement will depend upon a number of factors, including the amount and timing of taxable income generated in the future, changes in future tax rates, the value of individual assets, the portion of the Company’s payments under the tax receivable agreement constituting imputed interest and increases in the tax basis of the Company’s assets resulting in payments to HFF Holdings, the Company has estimated that the payments that will be made to HFF Holdings will be $134.2 million and has recorded this obligation to HFF Holdings as a liability on the consolidated balance sheet. During the year ended December 31, 2014, the tax rates used to measure the deferred tax assets were updated which resulted in a decrease of deferred tax assets of $0.8 million which resulted in a decrease in the payable under the tax receivable agreement of $0.7 million. The tax rates used to measure the deferred tax assets were also updated during the year ended December 31, 2013, which resulted in an increase of deferred tax assets of $0.8 million which resulted in a decrease in the payable under the tax receivable agreement of $0.7 million. To the extent the Company does not realize all of the tax benefits in future years, this liability to HFF Holdings may be reduced. | |||||||||||||||||
In conjunction with filing of the Company’s 2013 federal and state tax returns, the benefit for 2013 relating to the Section 754 basis step-up was finalized resulting in $12.5 million of tax benefits being realized by the Company. As discussed above, the Company is obligated to remit to HFF Holdings 85% of any such cash savings in federal and state tax. As such during 2014, the Company paid $10.7 million to HFF Holdings under the tax receivable agreement. In conjunction with the filing of the Company’s 2012 federal and state tax returns, the benefit for 2012 relating to the Section 754 basis step-up was finalized resulting in $12.2 million in tax benefits realized by the Company for 2012. During August 2013, the Company paid $10.4 million to HFF Holdings under this tax receivable agreement. As of December 31, 2014, the Company has made payments to HFF Holdings pursuant to the terms of the tax receivable agreement in an aggregate amount of approximately $52.6 million and the Company anticipates to make a payment of approximately $10.8 million to HFF Holdings in 2015. |
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||
Noncontrolling Interest | 14 | Noncontrolling Interest | |||||||||||||||||||
Noncontrolling interest recorded in the consolidated financial statements of HFF, Inc. relates to the ownership interest of HFF Holdings in the Operating Partnerships that HFF Holdings held prior to August 31, 2012. As a result of the Reorganization Transactions discussed in Note 1, partners’ capital was eliminated from equity and a noncontrolling interest of $6.4 million was recorded representing HFF Holdings remaining interest in the Operating Partnerships following the initial public offering and the underwriters’ exercise of the overallotment option on February 21, 2007, along with HFF Holdings’ proportional share of net income earned by the Operating Partnerships subsequent to the change in ownership. As discussed in Note 1, HFF, Inc. is a holding company and, as such, does not generate income other than through its proportional share of net income earned by the Operating Partnerships. However, HFF, Inc. does incur certain costs which are not allocated or shared with the Operating Partnerships or their direct or indirect partners (including, prior to August 31, 2012, HFF Holdings) and, therefore, the net income as shown on the consolidated statements of income is not proportionately shared between the noncontrolling interest holder and the controlling interest holder. | |||||||||||||||||||||
As a result of the Reorganization Transactions, HFF Holdings beneficially owned 20,355,000 partnership units in each of the Operating Partnerships. Pursuant to the terms of HFF, Inc.’s amended and restated certificate of incorporation, HFF Holdings was entitled from time to time to exchange, subject to certain restrictions, its partnership units in the Operating Partnerships for shares of the Company’s Class A common stock on the basis of two partnership units, one for each Operating Partnership, for one share of Class A common stock, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. | |||||||||||||||||||||
All of the partnership units were exchanged as of August 31, 2012 by members of HFF Holdings for an equal amount of shares of Class A common stock. During the year ending December 31, 2012, 997,089 partnership units were exchanged. The table below sets forth the noncontrolling interest amount recorded during the year ending December 31, 2012, which includes the exchange of 845,947 partnership units for 845,947 shares of Class A common stock during the three months ended March 31, 2012, 18,000 partnership units for 18,000 shares of Class A common stock during the three months ended June 30, 2012 and 133,142 partnership units for 133,142 shares of Class A common stock during the three months ended September 30, 2012 (dollars in thousands). | |||||||||||||||||||||
Three | Three | Three | Three | Year | |||||||||||||||||
Months | Months | Months | Months | Ended | |||||||||||||||||
Ended | Ended | Ended | Ended | 12/31/12 | |||||||||||||||||
3/31/12 | 6/30/12 | 9/30/12 | 12/31/12 | ||||||||||||||||||
Net income from operating partnerships | $ | 6,124 | $ | 19,039 | $ | 17,083 | $ | 29,402 | $ | 71,648 | |||||||||||
Noncontrolling interest ownership percentage | (A | ) | (B | ) | (C | ) | 0 | % | |||||||||||||
Noncontrolling interest | $ | 121 | $ | 75 | $ | 47 | $ | — | $ | 243 | |||||||||||
(A) | During the three months ending March 31, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 2.71% during January and February 2012 and 0.43% during March 2012. | ||||||||||||||||||||
(B) | During the three months ending June 30, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 0.41% during April 2012, 0.39% during May 2012 and 0.38% during June 2012. | ||||||||||||||||||||
(C) | During the three months ending September 30, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 0.36% during July and August 2012 and 0.00% during September 2012. | ||||||||||||||||||||
On September 30, 2009, a Registration Statement on Form S-3 relating to the offering and sale from time to time by the members of HFF Holdings of the 20,355,000 shares of Class A common stock exchangeable for the 20,355,000 partnership units in each of the Operating Partnerships beneficially owned by members of HFF Holdings immediately following the Reorganization Transactions became effective. At December 31, 2012, all such 20,355,000 partnership units had been exchanged for an equal amount of shares of the Company’s Class A common stock pursuant to the Exchange Right. After giving effect to these changes, HFF Holdings owned 0% of the Operating Partnerships and the Company, through its wholly-owned subsidiaries, became on August 31, 2012, and continues to be, the only equity holder of the Operating Partnerships. | |||||||||||||||||||||
As a result of the Reorganization Transactions, HFF Holdings was issued one share of the Company’s Class B common stock. Class B common stock had no economic rights but entitled the holder to a number of votes that is equal to the total number of shares of Class A common stock for which the partnership units that HFF Holdings held in the Operating Partnerships, as of the relevant record date for the HFF, Inc. stockholder action, were exchangeable. Since all of the partnership units had been exchanged as of August 31, 2012, the Class B common stock was transferred to the Company and retired on August 31, 2012 in accordance with the Company’s certificate of incorporation. |
Stockholders_Equity
Stockholders Equity | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity [Abstract] | ||
Stockholders Equity | 15 | Stockholders Equity |
The Company is authorized to issue 175,000,000 shares of Class A common stock, par value $0.01 per share, and one share of Class B common stock, par value $0.01 per share. Each share of Class A common stock entitles its holder to one vote on all matters to be voted on by stockholders generally. As part of the Reorganization Transactions, HFF Holdings was issued one share of Class B common stock. Class B common stock had no economic rights but entitled the holder to a number of votes equal to the total number of shares of Class A common stock for which the partnership units that HFF Holdings held in the Operating Partnerships, as of the relevant record date for the HFF, Inc. stockholder action, were exchangeable. Holders of Class A and Class B common stock voted together as a single class on all matters presented to the stockholders for their vote or approval. Since all of the partnership units have been exchanged as of August 31, 2012, the Class B common stock was transferred to the Company and retired on August 31, 2012 in accordance with the Company’s certificate of incorporation. The Company had issued 38,125,363 and 37,498,796 shares of Class A common stock as of December 31, 2014 and December 31, 2013, respectively. | ||
On January 20, 2015, our board of directors declared a special cash dividend of $1.80 per share of Class A common stock to stockholders of record on February 2, 2015. The aggregate dividend payment was paid on February 13, 2015 and totaled approximately $67.8 million based on the number of shares of Class A common stock then outstanding. Additionally, 49,383 restricted stock units (dividend units) were granted for those unvested and vested but not issued restricted stock units as of the record date of February 2, 2015. These dividend units follow the same vesting terms as the underlying restricted stock units. Additionally, on January 15, 2014, the Company’s board of directors declared a special cash dividend of $1.83 per share of Class A common stock to stockholders of record on January 27, 2014. The aggregate dividend payment was paid on February 6, 2014 and totaled approximately $68.2 million based on the number of shares of Class A common stock then outstanding. Additionally, 42,108 restricted stock units (dividend units) were granted for those unvested and vested but not issued restricted stock units as of the record date of January 27, 2014. These dividend units follow the same vesting terms as the underlying restricted stock units. | ||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | 16 | Earnings Per Share | |||||||||||||||
The Company’s net income and weighted average shares outstanding for the years ended December 31, 2014 and 2013, consists of the following (dollars in thousands): | |||||||||||||||||
Year | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net income | $ | 61,286 | $ | 51,426 | |||||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||
Basic | 37,758,519 | 37,345,918 | |||||||||||||||
Diluted | 37,982,351 | 37,745,685 | |||||||||||||||
The calculations of basic and diluted net income per share amounts for the years ended December 31, 2014 and 2013 are described and presented below. | |||||||||||||||||
Basic Net Income per Share | |||||||||||||||||
Numerator — net income for the three and twelve months ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
Denominator — the weighted average shares of Class A common stock for the three and twelve months ended December 31, 2014 and 2013, including 149,229 and 130,418 restricted stock units that have vested and whose issuance is no longer contingent as of December 31, 2014 and 2013, respectively. | |||||||||||||||||
Diluted Net Income per Share | |||||||||||||||||
Numerator — net income for the three and twelve month periods ended December 31, 2014 and 2013 as in the basic net income per share calculation described above. | |||||||||||||||||
Denominator — the weighted average shares of Class A common stock for the three and twelve months ended December 31, 2014 and 2013, including 149,229 and 130,418 restricted stock units that have vested and whose issuance is no longer contingent as of December 31, 2014 and 2013, respectively, plus the dilutive effect of the unrestricted stock units and stock options. There were no anti-dilutive unrestricted stock units and stock options in 2014 and 2013. | |||||||||||||||||
Three Months | Year | Three Months | Year | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||
Basic Earnings Per Share of Class A Common Stock | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 26,945 | $ | 61,286 | $ | 22,665 | $ | 51,426 | |||||||||
Denominator: | |||||||||||||||||
Weighted average number of shares of Class A common stock outstanding | 37,826,940 | 37,758,519 | 37,378,661 | 37,345,918 | |||||||||||||
Basic net income per share of Class A common stock | $ | 0.71 | $ | 1.62 | $ | 0.61 | $ | 1.38 | |||||||||
Diluted Earnings Per Share of Class A Common Stock | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 26,945 | $ | 61,286 | $ | 22,665 | $ | 51,426 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average number of shares of Class A common stock | 37,826,940 | 37,758,519 | 37,378,661 | 37,345,918 | |||||||||||||
Add — dilutive effect of: | |||||||||||||||||
Unvested restricted stock units | 357,713 | 198,619 | 537,215 | 378,594 | |||||||||||||
Stock options | 25,250 | 25,213 | 23,912 | 21,173 | |||||||||||||
Weighted average common shares outstanding — diluted | 38,209,903 | 37,982,351 | 37,939,788 | 37,745,685 | |||||||||||||
Diluted earnings per share of Class A common stock | $ | 0.71 | $ | 1.61 | $ | 0.6 | $ | 1.36 | |||||||||
Concentrations
Concentrations | 12 Months Ended | |
Dec. 31, 2014 | ||
Risks and Uncertainties [Abstract] | ||
Concentrations | 17 | Concentrations |
A significant portion of the Company’s capital markets services revenues is derived from transactions involving commercial real estate located in specific geographic areas. During 2014, approximately 25.0%, 12.7%, 7.8%, 6.1%, 5.0% and 5.9% of the Company’s capital markets services revenues were derived from transactions involving commercial real estate located in Texas, California, Florida, Illinois, New York and the region consisting of the District of Columbia, Maryland and Virginia, respectively. During 2013, approximately 25.2%, 12.9%, 6.3%, 5.5%, 5.0% and 6.1% of the Company’s capital markets services revenues were derived from transactions involving commercial real estate located in Texas, California, Florida, Illinois, Massachusetts and the region consisting of the District of Columbia, Maryland and Virginia, respectively. As a result, a significant portion of the Company’s business is dependent on the economic conditions in general and the markets for commercial real estate in these areas. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 18 | Related Party Transactions |
The Company made payments on behalf of two affiliates, HFF Holdings and Holdings Sub (the “Holdings Affiliates”), of $0 and $1,617, respectively during the year ended December 31, 2014. The Holdings Affiliates paid $0 and $172,834 of the intercompany balance to the Company during the year ended December 31, 2014 and 2013, respectively. The Company made payments on behalf of the Holdings Affiliates of $488 and $48,481 during the year ended December 31, 2013. These payments by the Company are primarily for professional services fees and other miscellaneous operating expenses on behalf of the Holdings Affiliates. The Company had a net receivable from the Holdings Affiliates of $2,000 and zero as of December 31, 2014 and 2013, respectively. | ||
As a result of the Company’s initial public offering, the Company entered into a tax receivable agreement with HFF Holdings that provides for the payment by the Company to HFF Holdings of 85% of the amount of the cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of the increase in tax basis of the assets owned by HFF LP and HFF Securities and as a result of certain other tax benefits arising from entering into the tax receivable agreement and making payments under that agreement. As members of HFF Holdings, each of Mark Gibson, the Company’s chief executive officer, Jody Thornton, the Company’s president and member of the Company’s board of directors and a transaction professional of the Operating Partnerships, and John Fowler, a current director emeritus of the Company’s board of directors and a transaction professional of the Operating Partnerships, and H. Scott Galloway, Matthew D. Lawton, Gerard T. Sansosti and Manuel A. de Zarraga, each an Executive Managing Director and a transaction professional of the Operating Partnerships, is entitled to participate in such payments, in each case on a pro rata basis based upon such person’s ownership of interests in each series of tax receivable payments created by the initial public offering or subsequent exchange of Operating Partnership units. During the third quarter of 2014, Messrs. Gibson, Thornton, Fowler, Galloway, Lawton, Sansosti and de Zarraga received payments of $0.9 million, $0.9 million, $0.7 million, $0.4 million, $0.3 million, $0.4 million and $0.3 million in connection with the Company’s payment of $10.7 million to HFF Holdings under the tax receivable agreement. During the third quarter of 2013, Messrs. Gibson, Thornton, Fowler, Galloway, Lawton, Sansosti and de Zarraga received payments of $0.9 million, $0.9 million, $0.7 million, $0.4 million, $0.2 million, $0.4 million and $0.2 million in connection with the Company’s payment of $10.4 million to HFF Holdings under the tax receivable agreement. The Company will retain the remaining 15% of cash savings, if any, in income tax that it realizes. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of HFF LP and HFF Securities allocable to the Company as a result of the initial sale and later exchanges and had the Company not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the offering and will continue until all such tax benefits have been utilized or have expired. See Note 13 for further information regarding the tax receivable agreement and Note 19 for the amount recorded in relation to this agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 19 | Commitments and Contingencies |
The Company is obligated, pursuant to its tax receivable agreement with HFF Holdings, to pay to HFF Holdings 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of the increases in tax basis under Section 754 and as a result of certain other tax benefits arising from the Company entering into the tax receivable agreement and making payments under that agreement. During the year ended December 31, 2014, the Company paid HFF Holdings $10.7 million, which represents 85% of the actual cash savings realized by the Company in 2013. During the year ended December 31, 2013, the Company paid HFF Holdings $10.4 million, which represents 85% of the actual cash savings realized by the Company in 2012. The Company has recorded $134.2 million and $145.6 million for this obligation to HFF Holdings as a liability on the consolidated balance sheets as of December 31, 2014 and 2013, respectively. The Company anticipates making a payment to HFF Holdings of approximately $10.8 million in 2015. | ||
In recent years, the Company has entered into arrangements with newly-hired transaction professionals whereby these transaction professionals would be paid additional compensation if certain performance targets are met over a defined period. These payments will be made to the transaction professionals only if they enter into an employment agreement at the end of the performance period. Payments under these arrangements, if earned, would be paid in fiscal years 2016 through 2018. Currently, the Company cannot reasonably estimate the amounts that would be payable under all of these arrangements. The Company begins to accrue for these payments when it is deemed probable that payments will be made; therefore, on a quarterly basis, the Company evaluates the probability of each of the transaction professionals achieving the performance targets and the probability of each of the transaction professionals signing an employment agreement. As of December 31, 2014 and 2013, $3.3 million and $2.6 million, respectively, have been accrued for these arrangements on the consolidated balance sheet. | ||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data | 20 | Selected Quarterly Financial Data (unaudited, in thousands except for per share data) | |||||||||||||||
Quarter Ended | |||||||||||||||||
2014 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net revenue | $ | 76,031 | $ | 94,787 | $ | 112,611 | $ | 142,489 | |||||||||
Operating income | 3,818 | 18,006 | 25,783 | 37,220 | |||||||||||||
Interest and other income, net | 2,910 | 3,241 | 4,144 | 7,631 | |||||||||||||
Decrease in payable under the tax receivable agreement | 501 | — | 299 | — | |||||||||||||
Net income | 3,707 | 12,608 | 18,026 | 26,945 | |||||||||||||
Per share data (1) | |||||||||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.33 | $ | 0.48 | $ | 0.71 | |||||||||
Diluted earnings per share | $ | 0.1 | $ | 0.33 | $ | 0.47 | $ | 0.71 | |||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net revenue | $ | 54,215 | $ | 81,008 | $ | 89,414 | $ | 130,968 | |||||||||
Operating (loss) income | (121 | ) | 15,410 | 18,645 | 36,043 | ||||||||||||
Interest and other income, net | 4,187 | 6,424 | 3,546 | 2,943 | |||||||||||||
Increase in payable under the tax receivable agreement | — | (339 | ) | (701 | ) | — | |||||||||||
Net income | 2,316 | 13,100 | 13,345 | 22,665 | |||||||||||||
Per share data (1) | |||||||||||||||||
Basic earnings per share | $ | 0.06 | $ | 0.35 | $ | 0.36 | $ | 0.61 | |||||||||
Diluted earnings per share | $ | 0.06 | $ | 0.35 | $ | 0.35 | $ | 0.6 | |||||||||
-1 | Earnings per share were computed independently for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the year. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements of the Company as of December 31, 2014 and December 31, 2013 include the accounts of HFF LP, HFF Securities and the Company’s direct wholly-owned subsidiaries, Holliday GP and Partnership Holdings. All significant intercompany accounts and transactions have been eliminated. | |
The purchase of shares of Holliday GP and partnership units in each of the Operating Partnerships are treated as reorganization under common control for financial reporting purposes. HFF Holdings owned 100% of Holliday GP, HFF LP Acquisition, LLC, a Delaware limited liability company (“Holdings Sub”), and the Operating Partnerships prior to the Reorganization Transactions. The initial purchase of shares of Holliday GP and the initial purchase of units in the Operating Partnerships are accounted for at historical cost, with no change in basis for financial reporting purposes. Accordingly, the net assets of HFF Holdings purchased by the Company are reported in the consolidated financial statements of the Company at HFF Holdings’ historical cost. | |
As the sole stockholder of Holliday GP (the sole general partner of the Operating Partnerships), HFF, Inc. operates and controls all of the business and affairs of the Operating Partnerships. The Company consolidates the financial results of the Operating Partnerships, and the prior ownership interest of HFF Holdings in the Operating Partnerships is treated as a noncontrolling interest in the Company’s consolidated financial statements. HFF Holdings through its wholly-owned subsidiary (Holdings Sub), and the Company, through its wholly-owned subsidiaries (Partnership Holdings and Holliday GP), were the only partners of the Operating Partnerships following the Reorganization Transactions. As of August 31, 2012, HFF Holdings had exchanged all of its remaining interests in the Operating Partnerships and therefore the Company, through its wholly-owned subsidiaries, became and continues to be the only equity holder of the Operating Partnerships. | |
Consolidation | Consolidation |
HFF, Inc. controls the activities of the Operating Partnerships through its 100% ownership interest of Holliday GP. As such, in accordance with ASC 810 Consolidation, Holliday GP consolidates the Operating Partnerships as Holliday GP is the sole general partner of the Operating Partnerships and the limited partners do not have substantive participating rights or kick out rights. The ownership interest of HFF Holdings in the Operating Partnerships that HFF Holdings held prior to the exchange on August 31, 2012 of its final remaining Operating Partnership units is reflected as a noncontrolling interest in the Company’s consolidated financial statements. | |
The accompanying consolidated financial statements of the Company include the accounts of HFF LP, HFF Securities and HFF, Inc.’s wholly-owned subsidiaries, Holliday GP and Partnership Holdings. The ownership interest in HFF LP and HFF Securities that HFF Holdings held prior to the exchange on August 31, 2012 of its final Operating Partnership units is treated as a noncontrolling interest in the consolidated financial statements of the Company. All significant intercompany accounts and transactions have been eliminated. | |
Concentrations of Credit Risk | Concentrations of Credit Risk |
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions in amounts which at times exceed the FDIC insurance limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any credit risk on cash other than as identified herein. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include cash on hand and in bank accounts and short-term investments with original maturities of three months or less. At December 31, 2014, our cash and cash equivalents were invested or held in a mix of money market funds and bank demand deposit accounts at two financial institutions. | |
Revenue Recognition | Revenue Recognition |
Capital markets services revenues consist of origination fees, investment sales fees, loan sale fees, placement fees and servicing fees. Origination fees are earned for the placement of debt, equity or structured financing for real estate transactions. Investment sales and loan sales fees are earned for brokering sales of real estate and/or loans. Placement fees are earned by HFF Securities for discretionary and nondiscretionary equity capital raises and other investment banking services. These fees are negotiated between the Company and its clients, generally on a case-by-case basis and are recognized and generally collected at the closing and the funding of the transaction, unless collection of the fee is not reasonably assured, in which case the fee is recognized as collected. The Company’s fee agreements do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the transaction closes. Servicing fees are compensation for providing any or all of the following: collection, remittance, recordkeeping, reporting and other services for either lenders or borrowers on mortgages placed with third-party lenders. Servicing fees are recognized when cash is collected as these fees are contingent upon the borrower making its payments on the loan. | |
Certain of the Company’s fee agreements provide for reimbursement of transaction-related costs which the Company recognizes as revenue. Certain reimbursements received from clients for out-of-pocket expenses are characterized as revenue in the statement of income rather than as a reduction of expenses incurred. Since the Company is the primary obligor, has supplier discretion, and bears the credit risk for such expenses, the Company records reimbursement revenue for such out-of-pocket expenses. Reimbursement revenue is recognized when billed if collectibility is reasonably assured. Reimbursement revenue is classified as other revenue in the consolidated statements of income. | |
Mortgage Notes Receivable | Mortgage Notes Receivable |
The Company is qualified with the Federal Home Loan Mortgage Corporation (Freddie Mac) as a Freddie Mac Multifamily Program Plus® Seller/Servicer. Under this Program, the Company originates mortgages based on commitments from Freddie Mac, and then sells the loans to Freddie Mac approximately one month following the loan origination. The Company recognizes interest income on the accrual basis during this holding period based on the contract interest rate in the loan that will be purchased by Freddie Mac (see Note 8). | |
The loans are initially recorded and then subsequently sold to Freddie Mac at the Company’s cost. The Company records mortgage loans held for sale at period end at market value in accordance with the provisions of ASC 948, Financial Services-Mortgage Banking, which states that market value for mortgage loans covered by investor commitments shall be based on commitment prices. In the case of loans originated for Freddie Mac, the commitment price is equal to the Company’s cost due to the short time frame from the Company’s origination to the purchase of the loan by the investor, which is approximately 30 days. As a result, the Company does not deem there to be any potential lower of cost or market issues. | |
Freddie Mac requires HFF LP to meet minimum net worth and liquid assets requirements and to comply with certain other standards. As of December 31, 2014, HFF LP met Freddie Mac’s minimum net worth and liquid assets requirements. | |
Advertising | Advertising |
Costs associated with advertising are expensed as incurred. Advertising expense was $0.8 million, $0.6 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are included in other operating expenses in the accompanying consolidated statements of income. | |
Property and Equipment | Property and Equipment |
Property and equipment are recorded at cost. The Company depreciates furniture, office equipment and computer equipment on the straight-line method over three to seven years. Software costs are depreciated using the straight-line method over three years, while capital leases and leasehold improvements are depreciated using the straight-line method over the shorter of the term of the lease or useful life of the asset. | |
Depreciation expense was $2.1 million, $1.8 million and $1.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Expenditures for routine maintenance and repairs are charged to expense as incurred. Renewals and betterments which substantially extend the useful life of an asset are capitalized. | |
Leases | Leases |
The Company leases all of its facilities under operating lease agreements. These lease agreements typically contain tenant improvement allowances. The Company records tenant improvement allowances as a leasehold improvement asset, included in property and equipment, net in the consolidated balance sheet, and a related deferred rent liability and amortizes them on a straight-line basis over the shorter of the term of the lease or useful life of the asset as additional depreciation expense and a reduction to rent expense, respectively. Lease agreements sometimes contain rent escalation clauses or rent holidays, which are recognized on a straight-line basis over the life of the lease in accordance with ASC 840, Leases (ASC 840). Office lease terms generally range from five to ten years. An analysis is performed on all equipment leases to determine whether they should be classified as a capital or an operating lease according to ASC 840. | |
Computer Software Costs | Computer Software Costs |
Certain costs related to the development or purchases of internal-use software are capitalized. Internal computer software costs that are incurred in the preliminary project stage are expensed as incurred. Direct consulting costs as well as payroll and related costs, which are incurred during the development stage of a project are capitalized and amortized using the straight-line method over estimated useful lives of three years when placed into production. | |
Goodwill | Goodwill |
Goodwill of $3.7 million represents the excess of the purchase price over the estimated fair value of the acquired net assets of HFF LP on June 16, 2003. The Company does not amortize goodwill, but evaluates goodwill on at least an annual basis for potential impairment. | |
Prepaid Compensation Under Employment Agreements | Prepaid Compensation Under Employment Agreements |
The Company entered into employment agreements with certain employees whereby sign-up bonuses and incentive compensation payments were made during 2014, 2013 and 2012. In most cases, the sign-up bonuses and the incentive compensation are to be repaid to the Company upon voluntary termination by the employee or termination by cause (as defined) by the Company prior to the termination of the employment agreement. The total cost of the employment agreements is being amortized by the straight-line method over the term of the agreements and is included in cost of services on the accompanying consolidated statements of income. As of December 31, 2014 and 2013, there was a total of approximately $1.2 million and $0.6 million of unamortized costs related to HFF LP agreements, respectively. | |
Transaction Professional Draws | Transaction Professional Draws |
As part of the Company’s overall compensation program, the Company offers a new transaction professional a draw arrangement which generally lasts until such time as a transaction professional’s pipeline of business is sufficient to allow the transaction professional to earn sustainable commissions. This program is intended to provide the transaction professional with a minimal amount of cash flow to allow adequate time for the transaction professional to develop business relationships. Similar to traditional salaries, the transaction professional draws are paid irrespective of the actual fees generated by the transaction professional. At times these transaction professional draws represent the only form of compensation received by the transaction professional. It is not the Company’s policy to seek collection of unearned transaction professional draws under this arrangement. Transaction professionals are also entitled to earn a commission on closed revenue transactions. Commissions are calculated as the commission that would have been earned by the broker under one of the Company’s commission programs, less any amount previously paid to the transaction professional in the form of a draw. As a result, the Company has concluded that transaction professional draws are economically equivalent to commissions paid and, accordingly, charges them to commissions as incurred. These amounts are included in cost of services on the accompanying consolidated statements of income. | |
Intangible Assets | Intangible Assets |
Intangible assets include mortgage servicing rights under agreements with third-party lenders and costs associated with obtaining a FINRA license. | |
Servicing rights are capitalized for servicing assumed on loans originated and sold to Freddie Mac with servicing retained based on an allocation of the carrying amount of the loan and the servicing right in proportion to the relative fair values at the date of sale. Servicing rights are recorded at the lower of cost or market. | |
Mortgage servicing rights do not trade in an active, open market and therefore, do not have readily available observable prices. Since there is no ready market value for the mortgage servicing rights, such as quoted market prices or prices based on sales or purchases of similar assets, the Company determines the fair value of the mortgage servicing rights by estimating the net present value of future cash flows associated with the servicing of the loans. Management makes certain assumptions and judgments in estimating the fair value of servicing rights. The estimate is based on a number of assumptions, including the benefits of servicing (contractual servicing fees and interest on escrow and float balances), the cost of servicing, prepayment rates (including risk of default), an inflation rate, the expected life of the cash flows and the discount rate. The cost of servicing, prepayment rates and discount rates are the most sensitive factors affecting the estimated fair value of the servicing rights. Management estimates a market participant’s cost of servicing by analyzing the limited market activity and considering the Company’s own internal servicing costs. Management estimates the discount rate by considering the various risks involved in the future cash flows of the underlying loans which include the cancellation of servicing contracts, concentration in the life company portfolio and the incremental risk related to large loans. Management estimates the prepayment levels of the underlying mortgages by analyzing recent historical experience. Many of the commercial loans being serviced have financial penalties for prepayment or early payoff before the stated maturity date. As a result, the Company has consistently experienced a low level of loan runoff. The estimated value of the servicing rights is impacted by changes in these assumptions. | |
Transfers and Servicing | Effective January 1, 2007, the Company adopted the provisions of ASC 860, Transfers and Servicing (ASC 860). ASC 860 requires an entity to recognize a servicing asset or servicing liability at fair value each time it undertakes an obligation to service a financial asset by entering into a servicing contract, regardless of whether explicit consideration is exchanged. The statement also permits a company to choose to either subsequently measure servicing rights at fair value and to report changes in fair value in earnings, or to retain the amortization method whereby servicing rights are recorded at the lower of cost or fair value and are amortized over their expected life. The Company retained the amortization method upon adoption of ASC 860, and began recognizing the fair value of servicing contracts involving no consideration assumed after January 1, 2007. The fair value of servicing rights assumed without consideration and recognized as intangible assets and income in 2014 and 2013 was $4.1 million and $2.1 million, respectively. These amounts are recorded in Interest and other income, net in the consolidated statements of income. |
HFF Securities has recognized an intangible asset in the amount of $0.1 million for the costs of obtaining and holding a FINRA license as a broker-dealer. The license is determined to have an indefinite useful economic life and is, therefore, not being amortized. | |
The Company evaluates amortizable intangible assets on an annual basis, or more frequently if circumstances so indicate, for potential impairment. Indicators of impairment monitored by management include a decline in the level of serviced loans. | |
Earnings Per Share | Earnings Per Share |
The Company computes net income per share in accordance with ASC 260, Earnings Per Share. Basic net income per share is computed by dividing income available to Class A common stockholders by the weighted average of common shares outstanding for the period. Diluted net income per share reflects the assumed conversion of all dilutive securities (see Note 16). | |
Firm and Office Profit Participation Plans | Firm and Office Profit Participation Plans |
The Company’s firm and office profit participation plans provide for payments in cash and share-based awards if certain performance targets are achieved during the year. The expense recorded for these plans is estimated during the year based on actual results at each interim reporting date and an estimate of future results for the remainder of the year. The plans allow for payments to be made in both cash and share-based awards, the composition of which is determined in the first calendar quarter of the subsequent year. Cash and share-based awards issued under these plans are subject to vesting conditions over the subsequent year, such that the total expense measured for these plans is recorded over the period from the beginning of the performance year through the vesting date. Based on an accounting policy election, the expense associated with the share-based component of the estimated incentive payout is recognized before the grant date of the stock due to the fact that the terms of the profit participation plans have been approved by the Company’s board of directors and the employees of the Company understand the requirements to earn the award. Expense associated with the stock component of estimated incentive payouts under the Company’s firm profit participation bonus plan or office profit participation bonus plans that are anticipated to be paid in respect of the applicable year is recorded as incentive compensation expense within personnel expenses in the Company’s consolidated statements of income during the year to which the expense relates. Following the award, if any, of the related incentive payout, the stock component expense is reclassified as stock compensation costs within personnel expenses. | |
Stock Based Compensation | Stock Based Compensation |
ASC 718, Compensation — Stock Compensation (ASC 718), requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors, including employee stock options and other forms of equity compensation based on estimated fair values. The Company estimates the grant-date fair value of stock options using the Black-Scholes option-pricing model. The fair value of the restricted stock awards is calculated as the market value of the Company’s Class A common stock on the date of grant. The Company also has restricted stock awards that are accounted for as liability awards and require remeasurement to fair value at the end of each reporting period. The Company’s awards are subject to graded or cliff vesting. Compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award. Forfeiture assumptions for all stock-based payment awards are evaluated on a quarterly basis and updated as necessary. | |
Income Taxes | Income Taxes |
HFF, Inc. and Holliday GP are corporations, and the Operating Partnerships are limited partnerships. The Operating Partnerships are subject to state and local income taxes. Income and expenses of the Operating Partnerships have been passed through and are reported on the individual tax returns of the members of HFF Holdings and on the corporate income tax returns of HFF, Inc. and Holliday GP. Income taxes shown on the Company’s consolidated statements of income reflect federal income taxes of the corporation and business and corporate income taxes in various jurisdictions. These taxes are assessed on the net income of the corporations, including its share of the Operating Partnerships’ net income. | |
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized in income in the period of the tax rate change. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Cost of Services | Cost of Services |
The Company considers personnel expenses directly attributable to providing services to its clients, such as salaries, commissions and transaction bonuses to transaction professionals and analysts, and certain purchased services to be directly attributable to the generation of capital markets services revenue and has classified these expenses as cost of services in the consolidated statements of income. | |
Segment Reporting | Segment Reporting |
The Company operates in one reportable segment, the commercial real estate financial intermediary segment and offers debt placement, investment sales, loan sales, loan servicing, equity placement and investment banking services through its 23 offices. The results of each office have been aggregated for segment reporting purposes as they have similar economic characteristics and provide similar services to a similar class of customer. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Treasury Stock | Treasury Stock |
The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted |
In January 2014, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) that require an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when settlement in this manner is available under the tax law. The adoption of these changes had no impact on the consolidated financial statements. | |
Pending Accounting Pronouncements | |
In May 2014, the FASB issued changes to revenue recognition with customers. This update provides a five-step analysis of transactions to determine when and how revenue is recognized. An entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for the Company beginning in fiscal year 2017. This update may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. | |
Fair Value Measurement | ASC Topic 820, Fair Value Measurement (ASC 820) establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: Level 1 inputs which are quoted market prices in active markets for identical assets or liabilities; Level 2 inputs which are observable market-based inputs or unobservable inputs corroborated by market data for the asset or liability; and Level 3 inputs which are unobservable inputs based on our own assumptions that are not corroborated by market data. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. |
Financial Instruments | FASB ASC Topic 825, Financial Instruments also requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments, excluding those included in the preceding fair value tables above, are as follows: |
Cash and Cash Equivalents: These balances include cash and cash equivalents with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments; these are considered Level 1 fair values. | |
Warehouse line of credit: Due to the short-term nature and variable interest rates of this instrument, fair value approximates carrying value; these are considered Level 2 fair values. | |
Contingencies | The Company is party to various litigation matters, in most cases involving ordinary course and routine claims incidental to its business. The Company cannot estimate with certainty its ultimate legal and financial liability with respect to any pending matters. In accordance with ASC 450, Contingencies, a reserve for estimated losses is recorded when the amount is probable and can be reasonably estimated. However, the Company does not believe, based on examination of such pending matters, that a material loss related to these matters is reasonably possible. |
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Weighted Average Fair Value of Outstanding Stock Options | The following table presents the weighted average assumptions for the year ended December 31, 2014: | ||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected volatility | 63.9 | % | |||||||||||||||
Risk-free interest rate | 3.2 | % | |||||||||||||||
Expected life (in years) | 6.2 | ||||||||||||||||
Nonvested Share Activity | The following table presents options outstanding for the years ended December 31, 2012, 2013 and 2014 and their related weighted average exercise price, weighted average remaining contractual term and intrinsic value: | ||||||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | (in ‘000’s) | |||||||||||||||
Term | |||||||||||||||||
Balance at January 1, 2012 | 51,586 | $ | 8.92 | 7.0 years | $ | 73 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2012 | 51,586 | $ | 8.92 | 6.0 years | $ | 308 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2013 | 51,586 | $ | 8.92 | 5.0 years | $ | 925 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||
Balance at December 31, 2014 | 51,586 | $ | 8.92 | 4.0 years | $ | 1,393 | |||||||||||
Restricted Stock Units Award Activity | A summary of restricted stock units (“RSU”) activity and related information during the period was as follows: | ||||||||||||||||
RSU’s with no | RSU’s with graded | Total | |||||||||||||||
vesting period | or cliff vesting | ||||||||||||||||
period | |||||||||||||||||
Balance at January 1, 2012 | 90,833 | 481,095 | 571,928 | ||||||||||||||
Granted | 20,161 | 238,955 | 259,116 | ||||||||||||||
Dividend on unissued RSU’s | 11,332 | 57,941 | 69,273 | ||||||||||||||
Converted to common stock | (4,822 | ) | (117,228 | ) | (122,050 | ) | |||||||||||
Forfeited or expired | — | (60,043 | ) | (60,043 | ) | ||||||||||||
Balance at December 31, 2012 | 117,504 | 600,720 | 718,224 | ||||||||||||||
Granted | 14,967 | 221,469 | 236,436 | ||||||||||||||
Converted to common stock | (5,183 | ) | (272,152 | ) | (277,335 | ) | |||||||||||
Forfeited or expired | — | (2,245 | ) | (2,245 | ) | ||||||||||||
Balance at December 31, 2013 | 127,288 | 547,792 | 675,080 | ||||||||||||||
Granted | 12,877 | 940,007 | 952,884 | ||||||||||||||
Dividend on unissued RSU’s | 7,900 | 34,208 | 42,108 | ||||||||||||||
Converted to common stock | (4,878 | ) | (621,689 | ) | (626,567 | ) | |||||||||||
Forfeited or expired | — | — | — | ||||||||||||||
Balance at December 31, 2014 | 143,187 | 900,318 | 1,043,505 | ||||||||||||||
Non Vested Options [Member] | |||||||||||||||||
Nonvested Share Activity | A summary of option activity and related information during 2012, 2013 and 2014 was as follows: | ||||||||||||||||
Options | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Exercise | |||||||||||||||||
Price | |||||||||||||||||
Nonvested at January 1, 2012 | 15,122 | $ | 6.1 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (11,017 | ) | 5.55 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Nonvested at December 31, 2012 | 4,105 | $ | 7.58 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (4,105 | ) | 7.58 | ||||||||||||||
Forfeited or expired | — | — | |||||||||||||||
Nonvested at December 31, 2013 and 2014 | — | $ | 0 | ||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): | ||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
Furniture and equipment | $ | 8,035 | $ | 5,066 | |||||
Computer equipment | 1,072 | 970 | |||||||
Capitalized software costs | 497 | 530 | |||||||
Leasehold improvements | 9,523 | 7,786 | |||||||
Subtotal | 19,127 | 14,352 | |||||||
Less accumulated depreciation and amortization | (8,954 | ) | (7,766 | ) | |||||
$ | 10,173 | $ | 6,586 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of Intangible Assets | The Company’s intangible assets are summarized as follows (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Mortgage servicing rights | $ | 41,041 | $ | (20,494 | ) | $ | 20,547 | $ | 34,100 | $ | (17,424 | ) | $ | 16,676 | |||||||||||
Unamortizable intangible assets: | |||||||||||||||||||||||||
FINRA license | 100 | — | 100 | 100 | — | 100 | |||||||||||||||||||
Total intangible assets | $ | 41,141 | $ | (20,494 | ) | $ | 20,647 | $ | 34,200 | $ | (17,424 | ) | $ | 16,776 | |||||||||||
Summary of Carrying Value of Mortgage Servicing Rights | Changes in the carrying value of mortgage servicing rights for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Category | 12/31/13 | Capitalized | Amortized | Sold / Transferred | 12/31/14 | ||||||||||||||||||||
Freddie Mac | $ | 3,730 | $ | 6,205 | $ | (1,571 | ) | $ | (3,165 | ) | $ | 5,199 | |||||||||||||
CMBS | 10,978 | 2,208 | (2,676 | ) | 2,511 | 13,021 | |||||||||||||||||||
Life company | 1,537 | 1,638 | (1,262 | ) | — | 1,913 | |||||||||||||||||||
Life company — limited | 431 | 243 | (260 | ) | — | 414 | |||||||||||||||||||
Total | $ | 16,676 | $ | 10,294 | $ | (5,769 | ) | $ | (654 | ) | $ | 20,547 | |||||||||||||
Category | 12/31/12 | Capitalized | Amortized | Sold / Transferred | 12/31/13 | ||||||||||||||||||||
Freddie Mac | $ | 7,641 | $ | 3,098 | $ | (1,310 | ) | $ | (5,699 | ) | $ | 3,730 | |||||||||||||
CMBS | 7,838 | 792 | (2,036 | ) | 4,384 | 10,978 | |||||||||||||||||||
Life company | 2,021 | 1,013 | (1,497 | ) | — | 1,537 | |||||||||||||||||||
Life company — limited | 299 | 328 | (196 | ) | — | 431 | |||||||||||||||||||
Total | $ | 17,799 | $ | 5,231 | $ | (5,039 | ) | $ | (1,315 | ) | $ | 16,676 | |||||||||||||
Summary of Estimated Amortization Expense | Estimated amortization expense for the next five years is as follows (in thousands): | ||||||||||||||||||||||||
2015 | $ | 5,111 | |||||||||||||||||||||||
2016 | 4,226 | ||||||||||||||||||||||||
2017 | 3,175 | ||||||||||||||||||||||||
2018 | 2,367 | ||||||||||||||||||||||||
2019 | 1,826 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Financial Assets Accounted at Fair Value on Nonrecurring Basis | The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2014 (in thousands): | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 185,128 | $ | — | $ | 185,128 | $ | — | |||||||||
Mortgage servicing rights | 20,547 | — | — | 25,972 | |||||||||||||
Total nonrecurring fair value measurements | $ | 205,675 | $ | — | $ | 185,128 | $ | 25,972 | |||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||
Mortgage notes receivable | $ | 93,587 | $ | — | $ | 93,587 | $ | — | |||||||||
Mortgage servicing rights | 16,676 | — | — | 20,258 | |||||||||||||
Total nonrecurring fair value measurements | $ | 110,263 | $ | — | $ | 93,587 | $ | 20,258 | |||||||||
Significant Assumptions Utilized to Value Servicing Rights | The significant assumptions utilized to value servicing rights as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life of cash flows | 3 years to 11 years | 3 years to 10 years | |||||||||||||||
Discount rate(1) | 14% to 20% | 15% to 20% | |||||||||||||||
Prepayment rate | 0% to 8% | 0% to 8% | |||||||||||||||
Inflation rate | 2% | 2% | |||||||||||||||
Cost of service per loan | $1,600 to $4,189 | $1,600 to $4,421 | |||||||||||||||
-1 | Reflects the time value of money and the risk of future cash flows related to the possible cancellation of servicing contracts, transferability restrictions on certain servicing contracts, concentration in the life company portfolio and large loan risk. |
Capital_Lease_Obligations_Tabl
Capital Lease Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Summary of Capital Lease Obligations | Capital lease obligations consist of the following at December 31, 2014 and 2013 (in thousands): | ||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
Capital lease obligations | $ | 766 | $ | 443 | |||||
Less current maturities | 337 | 258 | |||||||
$ | 429 | $ | 185 | ||||||
Summary of Future Minimum Lease Payments Under Capital Leases | A summary of future minimum lease payments under capital leases at December 31, 2014 is as follows (in thousands): | ||||||||
2015 | $ | 337 | |||||||
2016 | 286 | ||||||||
2017 | 143 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
$ | 766 | ||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Summary of Future Minimum Rental Payments | Future minimum rental payments for the next five years under operating leases with noncancelable terms in excess of one year and without regard to early termination provisions are as follows (in thousands): | ||||
2015 | $ | 7,477 | |||
2016 | 6,460 | ||||
2017 | 6,323 | ||||
2018 | 5,911 | ||||
2019 | 5,238 | ||||
Thereafter | 10,040 | ||||
$ | 41,449 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Summary of Income Tax Expense Includes Current and Deferred Taxes | Income tax expense includes current and deferred taxes as follows (in thousands): | ||||||||||||||||
Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||
Federal | $ | 22,439 | $ | 13,102 | $ | 35,541 | |||||||||||
State | 4,738 | 1,947 | 6,685 | ||||||||||||||
$ | 27,177 | $ | 15,049 | $ | 42,226 | ||||||||||||
Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Federal | $ | 21,745 | $ | 8,146 | $ | 29,891 | |||||||||||
State | 4,003 | 684 | 4,687 | ||||||||||||||
$ | 25,748 | $ | 8,830 | $ | 34,578 | ||||||||||||
Summary of Reconciliation Between Income Taxes | The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the effective tax rate on net income is as follows for the year ended December 31, 2014 and 2013 (dollars in thousands): | ||||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Pre-tax book income | $ | 103,512 | $ | 86,004 | |||||||||||||
Summary of Income Tax Expense Allocation | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income Tax expense | Rate | Rate | |||||||||||||||
Taxes computed at federal rate | $ | 36,229 | 35 | % | $ | 30,101 | 35 | % | |||||||||
State and local taxes, net of federal tax benefit | 4,512 | 4.4 | % | 3,967 | 4.6 | % | |||||||||||
Effect of deferred tax rate change | 776 | 0.7 | % | (822 | ) | (0.9 | )% | ||||||||||
Change in income tax benefit / payable to stockholder | (280 | ) | (0.3 | )% | 364 | 0.4 | % | ||||||||||
Return to provision adjustment | (49 | ) | (0.0 | )% | (285 | ) | (0.3 | )% | |||||||||
Compensation limitation | — | 0 | % | 525 | 0.6 | % | |||||||||||
Meals and entertainment | 1,017 | 1 | % | 719 | 0.8 | % | |||||||||||
Other | 21 | 0 | % | 9 | 0 | % | |||||||||||
$ | 42,226 | 40.8 | % | $ | 34,578 | 40.2 | % | ||||||||||
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following at December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Section 754 election tax basis step-up | $ | 145,151 | $ | 158,229 | |||||||||||||
Tenant improvements | 2,800 | 2,522 | |||||||||||||||
Net operating loss carryforward | 36 | 379 | |||||||||||||||
Restricted stock units | 3,762 | 5,271 | |||||||||||||||
Compensation | 5,054 | 3,805 | |||||||||||||||
Intangible asset | 470 | 510 | |||||||||||||||
Tax credits | — | 123 | |||||||||||||||
Other | 398 | 348 | |||||||||||||||
Deferred income tax asset | 157,671 | 171,187 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Goodwill | (1,276 | ) | (1,277 | ) | |||||||||||||
Servicing rights | (7,815 | ) | (6,332 | ) | |||||||||||||
Deferred rent | (1,944 | ) | (1,892 | ) | |||||||||||||
Investment in partnership | (586 | ) | (587 | ) | |||||||||||||
Deferred income tax liability | (11,621 | ) | (10,088 | ) | |||||||||||||
Net deferred income tax asset | $ | 146,050 | $ | 161,099 | |||||||||||||
Noncontrolling_Interest_Tables
Noncontrolling Interest (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||
Summary of Noncontrolling Interest | The table below sets forth the noncontrolling interest amount recorded during the year ending December 31, 2012 | ||||||||||||||||||||
Three | Three | Three | Three | Year | |||||||||||||||||
Months | Months | Months | Months | Ended | |||||||||||||||||
Ended | Ended | Ended | Ended | 12/31/12 | |||||||||||||||||
3/31/12 | 6/30/12 | 9/30/12 | 12/31/12 | ||||||||||||||||||
Net income from operating partnerships | $ | 6,124 | $ | 19,039 | $ | 17,083 | $ | 29,402 | $ | 71,648 | |||||||||||
Noncontrolling interest ownership percentage | (A | ) | (B | ) | (C | ) | 0 | % | |||||||||||||
Noncontrolling interest | $ | 121 | $ | 75 | $ | 47 | $ | — | $ | 243 | |||||||||||
(A) | During the three months ending March 31, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 2.71% during January and February 2012 and 0.43% during March 2012. | ||||||||||||||||||||
(B) | During the three months ending June 30, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 0.41% during April 2012, 0.39% during May 2012 and 0.38% during June 2012. | ||||||||||||||||||||
(C) | During the three months ending September 30, 2012, the ownership of the Operating Partnerships changed due to the exercise of exchange rights of HFF Holdings. HFF Holdings’ ownership percentage in the Operating Partnerships was 0.36% during July and August 2012 and 0.00% during September 2012. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Summary of Net Income and Weighted Average Shares Outstanding | The Company’s net income and weighted average shares outstanding for the years ended December 31, 2014 and 2013, consists of the following (dollars in thousands): | ||||||||||||||||
Year | Year | ||||||||||||||||
Ended | Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net income | $ | 61,286 | $ | 51,426 | |||||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||
Basic | 37,758,519 | 37,345,918 | |||||||||||||||
Diluted | 37,982,351 | 37,745,685 | |||||||||||||||
Summary of Calculations of Basic and Diluted Net Income per Share | |||||||||||||||||
Three Months | Year | Three Months | Year | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||
Basic Earnings Per Share of Class A Common Stock | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 26,945 | $ | 61,286 | $ | 22,665 | $ | 51,426 | |||||||||
Denominator: | |||||||||||||||||
Weighted average number of shares of Class A common stock outstanding | 37,826,940 | 37,758,519 | 37,378,661 | 37,345,918 | |||||||||||||
Basic net income per share of Class A common stock | $ | 0.71 | $ | 1.62 | $ | 0.61 | $ | 1.38 | |||||||||
Diluted Earnings Per Share of Class A Common Stock | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 26,945 | $ | 61,286 | $ | 22,665 | $ | 51,426 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average number of shares of Class A common stock | 37,826,940 | 37,758,519 | 37,378,661 | 37,345,918 | |||||||||||||
Add — dilutive effect of: | |||||||||||||||||
Unvested restricted stock units | 357,713 | 198,619 | 537,215 | 378,594 | |||||||||||||
Stock options | 25,250 | 25,213 | 23,912 | 21,173 | |||||||||||||
Weighted average common shares outstanding — diluted | 38,209,903 | 37,982,351 | 37,939,788 | 37,745,685 | |||||||||||||
Diluted earnings per share of Class A common stock | $ | 0.71 | $ | 1.61 | $ | 0.6 | $ | 1.36 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
2014 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net revenue | $ | 76,031 | $ | 94,787 | $ | 112,611 | $ | 142,489 | |||||||||
Operating income | 3,818 | 18,006 | 25,783 | 37,220 | |||||||||||||
Interest and other income, net | 2,910 | 3,241 | 4,144 | 7,631 | |||||||||||||
Decrease in payable under the tax receivable agreement | 501 | — | 299 | — | |||||||||||||
Net income | 3,707 | 12,608 | 18,026 | 26,945 | |||||||||||||
Per share data (1) | |||||||||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.33 | $ | 0.48 | $ | 0.71 | |||||||||
Diluted earnings per share | $ | 0.1 | $ | 0.33 | $ | 0.47 | $ | 0.71 | |||||||||
Quarter Ended | |||||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Net revenue | $ | 54,215 | $ | 81,008 | $ | 89,414 | $ | 130,968 | |||||||||
Operating (loss) income | (121 | ) | 15,410 | 18,645 | 36,043 | ||||||||||||
Interest and other income, net | 4,187 | 6,424 | 3,546 | 2,943 | |||||||||||||
Increase in payable under the tax receivable agreement | — | (339 | ) | (701 | ) | — | |||||||||||
Net income | 2,316 | 13,100 | 13,345 | 22,665 | |||||||||||||
Per share data (1) | |||||||||||||||||
Basic earnings per share | $ | 0.06 | $ | 0.35 | $ | 0.36 | $ | 0.61 | |||||||||
Diluted earnings per share | $ | 0.06 | $ | 0.35 | $ | 0.35 | $ | 0.6 | |||||||||
-1 | Earnings per share were computed independently for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the year. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 05, 2007 | Feb. 21, 2007 | Dec. 31, 2013 | Jan. 30, 2007 | Nov. 09, 2006 |
Office | ||||||
Class of Stock [Line Items] | ||||||
Number of offices in the United States | 23 | |||||
Holliday GP [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of shares held by the Company | 100.00% | |||||
HFF LP Acquisition, LLC [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of shares held by the Company | 100.00% | |||||
IPO [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of shares purchase from Partners | 45.00% | 39.00% | 6.00% | |||
Underwriting commission | $18 | |||||
Offering expenses | 3 | |||||
Net proceeds from overallotment | 35.9 | |||||
Underwriting commissions and other expenses | 2.7 | |||||
Repayment of outstanding indebtedness | 56.3 | |||||
Number of share option exercised | 2,145,000 | |||||
Percentage of shares option exercised | 15.00% | |||||
Per share price, exercised | $18 | |||||
Class A Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 175,000,000 | 175,000,000 | ||||
Sale of common stock, shares | 38,125,363 | 37,498,796 | ||||
Class A Common Stock [Member] | IPO [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common share proposed for public offering | 14,300,000 | |||||
Common stock, shares authorized | 14,300,000 | |||||
Initial public offering price, per share | $18 | |||||
Sale of common stock, value | $236.40 | |||||
Sale of common stock, shares | 14,300,000 | |||||
Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 1 | |||||
Sale of common stock, shares | 1 | |||||
Common Class B [Member] | IPO [Member] | HFF Holdings [Member] | ||||||
Class of Stock [Line Items] | ||||||
Sale of common stock, shares | 1 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 16, 2003 | |
Office | ||||
Segment | ||||
Institution | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership interest of Holliday GP | 100.00% | |||
Cash and cash equivalents invested into institution | 2 | |||
Short period originated to purchase of loan by investor | 30 days | |||
Advertising expenses | $800,000 | $600,000 | $600,000 | |
Depreciation expense | 2,100,000 | 1,800,000 | 1,900,000 | |
Estimated useful lives | 3 years | |||
Excess of the purchase price over the estimated fair value | 3,712,000 | 3,712,000 | 3,700,000 | |
Unamortized costs of agreements | 1,200,000 | 600,000 | ||
License costs | 100,000 | |||
Fair value of servicing rights | $4,100,000 | $2,100,000 | ||
Number of reportable segment | 1 | |||
Number of offices in the United States | 23 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Depreciation on Property and equipment | 3 years | |||
Range of office lease terms | 5 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Depreciation on Property and equipment | 7 years | |||
Range of office lease terms | 10 years | |||
Capitalized Software Costs [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Depreciation on Property and equipment | 3 years |
Stock_Compensation_Additional_
Stock Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2014 | Feb. 18, 2015 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock available under term plan | 3,500,000 | |||||
Stock compensation cost | $9,820,000 | $8,302,000 | $3,442,000 | |||
Unrecognized compensation cost related to share based awards | 17,700,000 | |||||
Options, Granted | 0 | 0 | 0 | |||
Options, Exercised | 0 | 0 | 0 | |||
Restricted stock units outstanding | 1,043,505 | 675,080 | 718,224 | 571,928 | ||
Liability awards were granted with a cliff vesting date | 1-Mar-14 | |||||
Restricted stock units vested period | 3 years 6 months | |||||
Restricted stock units, Granted | 952,884 | 236,436 | 259,116 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of restricted stock units | 5,400,000 | 3,500,000 | 12,700,000 | |||
Restricted Stock [Member] | Class A Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vested | 398,084 | |||||
Subsequent Event [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of restricted stock units | 9,300,000 | |||||
Restricted stock units vested period | 5 years | |||||
Restricted stock units, Granted | 250,000 | |||||
Restricted stock units vested percentage | 25.00% | |||||
Subsequent Event [Member] | Office and Profit Participation Plans [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of restricted stock units | $7,900,000 | |||||
Restricted stock units vested | 68,194 | |||||
Restricted stock units, Granted | 211,597 |
Stock_Compensation_Weighted_Av
Stock Compensation - Weighted Average Fair Value of Outstanding Stock Options (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Dividend yield | 0.00% |
Expected volatility | 63.90% |
Risk-free interest rate | 3.20% |
Expected life (in years) | 6 years 2 months 12 days |
Stock_Compensation_Schedule_of
Stock Compensation - Schedule of Options Outstanding and Related Weighted Average Exercise Price, Weighted Average Remaining Contractual Term and Intrinsic Value (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Options, Beginning balance | 51,586 | 51,586 | 51,586 | |
Options, Granted | 0 | 0 | 0 | |
Options, Exercised | 0 | 0 | 0 | |
Options, Forfeitures or expired | 0 | 0 | 0 | |
Options, Ending balance | 51,586 | 51,586 | 51,586 | 51,586 |
Weighted Average Exercise Price, Beginning balance | $8.92 | $8.92 | $8.92 | |
Weighted Average Exercise Price, Granted | $0 | $0 | $0 | |
Weighted Average Exercise Price, Exercised | $0 | $0 | $0 | |
Weighted Average Exercise Price, Forfeited or expired | $0 | $0 | $0 | |
Weighted Average Exercise Price, Ending balance | $8.92 | $8.92 | $8.92 | $8.92 |
Weighted Average Remaining Contractual Term, Beginning balance | 4 years | 5 years | 6 years | 7 years |
Average Intrinsic Value, Beginning balance | $925 | $308 | $73 | |
Weighted Average Remaining Contractual Term, Ending balance | 4 years | 5 years | 6 years | 7 years |
Average Intrinsic Value, Granted | 0 | 0 | 0 | |
Average Intrinsic Value, Exercised | 0 | 0 | 0 | |
Average Intrinsic Value, Forfeited or expired | 0 | 0 | 0 | |
Average Intrinsic Value, Ending balance | $1,393 | $925 | $308 | $73 |
Stock_Compensation_Nonvested_S
Stock Compensation - Nonvested Share Activity (Non Vested Options) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Based Compensation Activity [Line Items] | |||
Options, Granted | 0 | 0 | 0 |
Options, Granted, Weighted Average Exercise Price | $0 | $0 | $0 |
Options, Forfeited or expired, Weighted Average Exercise Price | $0 | $0 | $0 |
Nonvested [Member] | |||
Stock Based Compensation Activity [Line Items] | |||
Nonvested Options, Beginning Balance | 4,105 | 15,122 | |
Options, Granted | 0 | 0 | |
Options, Vested | -4,105 | -11,017 | |
Option, Forfeited or expired | 0 | ||
Option, Forfeited or expired | 0 | ||
Nonvested Options, Ending Balance | 4,105 | ||
Weighted Average Exercise Price, Beginning Balance | $7.58 | $6.10 | |
Options, Granted, Weighted Average Exercise Price | $0 | $0 | |
Options, Vested, Weighted Average Exercise Price | $7.58 | $5.55 | |
Options, Forfeited or expired, Weighted Average Exercise Price | $0 | $0 | |
Weighted Average Exercise Price, Ending Balance | $0 | $0 | $7.58 |
Stock_Compensation_Restricted_
Stock Compensation - Restricted Stock Units Award Activity (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |||
Restricted stock units outstanding, Beginning | 675,080 | 718,224 | 571,928 |
Restricted stock units, Granted | 952,884 | 236,436 | 259,116 |
Dividend on unissued RSU's | 42,108 | 69,273 | |
Restricted stock units outstanding, Converted to common stock | -626,567 | -277,335 | -122,050 |
Restricted Stock units, Forfeited or expired | -2,245 | -60,043 | |
Restricted stock units outstanding, Ending | 1,043,505 | 675,080 | 718,224 |
RSU's with No Vesting Period [Member] | |||
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |||
Restricted stock units outstanding, Beginning | 127,288 | 117,504 | 90,833 |
Restricted stock units, Granted | 12,877 | 14,967 | 20,161 |
Dividend on unissued RSU's | 7,900 | 11,332 | |
Restricted stock units outstanding, Converted to common stock | -4,878 | -5,183 | -4,822 |
Restricted stock units outstanding, Ending | 143,187 | 127,288 | 117,504 |
RSU's with Graded or Cliff Vesting Period [Member] | |||
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |||
Restricted stock units outstanding, Beginning | 547,792 | 600,720 | 481,095 |
Restricted stock units, Granted | 940,007 | 221,469 | 238,955 |
Dividend on unissued RSU's | 34,208 | 57,941 | |
Restricted stock units outstanding, Converted to common stock | -621,689 | -272,152 | -117,228 |
Restricted Stock units, Forfeited or expired | -2,245 | -60,043 | |
Restricted stock units outstanding, Ending | 900,318 | 547,792 | 600,720 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $19,127 | $14,352 |
Less accumulated depreciation and amortization | -8,954 | -7,766 |
Property, plant and equipment, net | 10,173 | 6,586 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 8,035 | 5,066 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,072 | 970 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 497 | 530 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $9,523 | $7,786 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Capital leased office equipment recorded in furniture and equipment | $19,127 | $14,352 |
Accumulated depreciation and amortization of capital leased office equipment included in consolidated statements | 8,954 | 7,766 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capital leased office equipment recorded in furniture and equipment | 1,400 | 1,100 |
Accumulated depreciation and amortization of capital leased office equipment included in consolidated statements | $600 | $700 |
Intangible_Assets_Summary_of_I
Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets Gross Carrying Amount | $41,141 | $34,200 |
Accumulated Amortization | -20,494 | -17,424 |
Total intangible assets Net Book Value | 20,500 | 16,700 |
Total intangible assets Net Book Value | 20,647 | 16,776 |
FINRA License [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 100 | 100 |
Accumulated Amortization | 0 | 0 |
Total intangible assets Net Book Value | 100 | 100 |
Mortgage Servicing Rights [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 41,041 | 34,100 |
Accumulated Amortization | -20,494 | -17,424 |
Total intangible assets Net Book Value | $20,547 | $16,676 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Commercial loans serviced by the Company | $39,300,000,000 | $33,100,000,000 | $31,300,000,000 |
Servicing fees and interest earned | 17,000,000 | 15,800,000 | 14,000,000 |
Mortgage servicing rights | 20,500,000 | 16,700,000 | |
Loan served for mortgage servicing rights | 34,500,000,000 | 27,000,000,000 | |
Gain on sale of cashiering portion | 1,900,000 | 4,900,000 | |
Amortization expenses | 5,769,000 | 5,048,000 | 3,850,000 |
Weighted-average life of mortgage servicing rights | 6 years 3 months 18 days | 5 years 9 months 18 days | |
Freddie Mac [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights retained upon sale | 6,200,000 | 3,100,000 | |
Originated loans, net | 2,000,000,000 | 1,100,000,000 | |
Amortization expenses | 5,800,000 | 5,000,000 | 3,900,000 |
Freddie Mac [Member] | Interest And Other Income [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Securitization compensation received | 2,600,000 | 4,800,000 | |
CMBS [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights acquired without exchange of initial consideration | 4,100,000 | 4,100,000 | |
Initial consideration, net | 8,000,000,000 | 8,000,000,000 | |
Life Company Tranches [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage servicing rights acquired without exchange of initial consideration | 2,100,000 | 2,100,000 | |
Initial consideration, net | $4,900,000,000 | $4,900,000,000 |
Intangible_Assets_Summary_of_C
Intangible Assets - Summary of Carrying Value of Mortgage Servicing Rights (Detail) (Mortgage Servicing Rights [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | $16,676 | $17,799 |
Capitalized | 10,294 | 5,231 |
Amortized | -5,769 | -5,039 |
Sold/Transferred | -654 | -1,315 |
Closing Balance | 20,547 | 16,676 |
Freddie Mac [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 3,730 | 7,641 |
Capitalized | 6,205 | 3,098 |
Amortized | -1,571 | -1,310 |
Sold/Transferred | -3,165 | -5,699 |
Closing Balance | 5,199 | 3,730 |
CMBS [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 10,978 | 7,838 |
Capitalized | 2,208 | 792 |
Amortized | -2,676 | -2,036 |
Sold/Transferred | 2,511 | 4,384 |
Closing Balance | 13,021 | 10,978 |
Life Company [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 1,537 | 2,021 |
Capitalized | 1,638 | 1,013 |
Amortized | -1,262 | -1,497 |
Closing Balance | 1,913 | 1,537 |
Life Company - Limited [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Opening Balance | 431 | 299 |
Capitalized | 243 | 328 |
Amortized | -260 | -196 |
Closing Balance | $414 | $431 |
Intangible_Assets_Summary_of_E
Intangible Assets - Summary of Estimated Amortization Expense (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2015 | $5,111 |
2016 | 4,226 |
2017 | 3,175 |
2018 | 2,367 |
2019 | $1,826 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (Fair Value Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Recurring [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Assets at fair value | $0 | $0 |
Liabilities at fair value | $0 | $0 |
Fair_Value_Measurement_Financi
Fair Value Measurement - Financial Assets Accounted at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | $20,500 | $16,700 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes receivable | 185,128 | 93,587 |
Mortgage servicing rights | 20,547 | 16,676 |
Total nonrecurring fair value measurements | 205,675 | 110,263 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes receivable | 185,128 | 93,587 |
Total nonrecurring fair value measurements | 185,128 | 93,587 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 25,972 | 20,258 |
Total nonrecurring fair value measurements | $25,972 | $20,258 |
Fair_Value_Measurement_Signifi
Fair Value Measurement - Significant Assumptions Utilized to Value Servicing Rights (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected life of cash flows | 3 years | 3 years |
Discount rate | 14.00% | 15.00% |
Prepayment rate | 0.00% | 0.00% |
Cost of service per loan | $1,600 | $1,600 |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected life of cash flows | 11 years | 10 years |
Discount rate | 20.00% | 20.00% |
Prepayment rate | 8.00% | 8.00% |
Inflation rate | 2.00% | 2.00% |
Cost of service per loan | $4,189 | $4,421 |
Capital_Lease_Obligations_Summ
Capital Lease Obligations - Summary of Capital Lease Obligations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Lease Obligations [Abstract] | ||
Capital lease obligations | $766 | $443 |
Less current maturities | 337 | 258 |
Capital lease obligations, non current maturities | $429 | $185 |
Capital_Lease_Obligation_Addit
Capital Lease Obligation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Leases [Abstract] | |
Lease Expiration Date | 30-Apr-17 |
Capital_Lease_Obligation_Summa
Capital Lease Obligation - Summary of Future Minimum Lease Payments Under Capital Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $337 |
2016 | 286 |
2017 | 143 |
2018 | 0 |
2019 | 0 |
Total | $766 |
Warehouse_Line_of_Credit_Addit
Warehouse Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jan. 27, 2015 | Dec. 31, 2013 |
Warehouse_Line_of_Credit | ||||
Line of Credit Facility [Line Items] | ||||
Number of warehouse line of credit facilities | 2 | |||
Warehouse line of credit outstanding amount | $185.10 | $93.60 | ||
Line of credit interest rate at the end of the period | 0.15% | 0.17% | ||
LIBOR rate duration period | 30 days | |||
Line of credit interest rate description | Interest on the warehouse lines of credit is at the 30-day LIBOR rate (0.15% and 0.17% at December 31, 2014 and December 31, 2013, respectively) plus a spread. HFF LP is also paid interest on its loans secured by multifamily loans at the rate in the Freddie Mac note. | |||
PNC Bank, N.A. [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Uncommitted financing arrangement | 350 | |||
PNC Bank, N.A. [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Uncommitted financing agreement increase period | 15 days | |||
PNC Bank, N.A. [Member] | Maximum [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Net increase in amount | 500 | |||
Huntington Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Uncommitted financing arrangement | 125 | |||
Huntington Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Uncommitted financing agreement increase | The lesser of 60 days after the first advance or May 1, 2015. | |||
Huntington Bank [Member] | Maximum [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Net increase in amount | 100 | |||
Uncommitted financing agreement increase period | 60 days |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leased Assets [Line Items] | |||
Total rental expense | $7.80 | $7.10 | $6.40 |
Lease expiration date | 2017 | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease terms | 10 years | ||
Reduced operating lease terms | 7 years | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease terms | 1 year | ||
Reduced operating lease terms | 2 years |
Lease_Commitments_Summary_of_F
Lease Commitments - Summary of Future Minimum Rental Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $7,477 |
2016 | 6,460 |
2017 | 6,323 |
2018 | 5,911 |
2019 | 5,238 |
Thereafter | 10,040 |
Total rental payment due, net | $41,449 |
Retirement_Plan_Additional_Inf
Retirement Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Sale Of Subsidiary [Abstract] | |||
Compensation after tax contribution | 50.00% | ||
Employer matching contributions percentage | 50.00% | ||
Percentage of deferred and salary contribution | 6.00% | ||
Maximum contribution of salary after tax | $5,000 | ||
Expense for plan | $2,100,000 | $1,900,000 | $1,600,000 |
Servicing_Additional_Informati
Servicing - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Transfers and Servicing [Abstract] | |||
Unpaid principal balance of servicing portfolio of commercial real estate loan | $39,300,000,000 | $33,100,000,000 | $31,300,000,000 |
Funds held in escrow | $240,300,000 | $211,100,000 | $172,900,000 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense Includes Current and Deferred Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax | $22,439 | $21,745 | |
State Current Tax | 4,738 | 4,003 | |
Federal and State Current Total | 27,177 | 25,748 | |
Federal Deferred Tax | 13,102 | 8,146 | |
State Deferred Tax | 1,947 | 684 | |
Federal and State Deferred Total | 15,049 | 8,830 | -7,659 |
Federal Current and Deferred Total | 35,541 | 29,891 | |
State Current and Deferred Total | 6,685 | 4,687 | |
Income tax expense | $42,226 | $34,578 | $8,661 |
Income_Taxes_Summary_of_Reconc
Income Taxes - Summary of Reconciliation Between Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Pre-tax book income | $103,512 | $86,004 | $52,766 |
Income_Taxes_Summary_of_Income1
Income Taxes - Summary of Income Tax Expense Allocation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Taxes computed at federal rate | $36,229 | $30,101 | |
State and local taxes, net of federal tax benefit | 4,512 | 3,967 | |
Effect of deferred tax rate change | 776 | -822 | |
Change in income tax benefit / payable to stockholder | 280 | 364 | |
Return to provision adjustment | -49 | -285 | |
Compensation limitation | 525 | ||
Meals and entertainment | 1,017 | 719 | |
Other | 21 | 9 | |
Income tax expense | $42,226 | $34,578 | $8,661 |
Taxes computed at federal rate, Percentage | 35.00% | 35.00% | |
State and local taxes, net of federal tax benefit, Percentage | 4.40% | 4.60% | |
Effect of deferred tax rate change, Percentage | 0.70% | -0.90% | |
Change in income tax benefit / payable to stockholder, Percentage | 0.30% | 0.40% | |
Return to provision adjustment, Percentage | 0.00% | -0.30% | |
Compensation limitation, Percentage | 0.00% | 0.60% | |
Meals and entertainment, Percentage | 1.00% | 0.80% | |
Other, Percentage | 0.00% | 0.00% | |
Income tax expense, Total Percentage | 40.80% | 40.20% |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Section 754 election tax basis step-up | $145,151 | $158,229 |
Tenant improvements | 2,800 | 2,522 |
Net operating loss carryforward | 36 | 379 |
Restricted stock units | 3,762 | 5,271 |
Compensation | 5,054 | 3,805 |
Intangible asset | 470 | 510 |
Tax credits | 123 | |
Other | 398 | 348 |
Deferred income tax asset | 157,671 | 171,187 |
Deferred income tax liabilities: | ||
Goodwill | -1,276 | -1,277 |
Servicing rights | -7,815 | -6,332 |
Deferred rent | -1,944 | -1,892 |
Investment in partnership | -586 | -587 |
Deferred income tax liability | -11,621 | -10,088 |
Net deferred income tax asset | $146,050 | $161,099 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Income Taxes [Line Items] | ||||||
Deferred annual pre-tax benefit | $32,600,000 | |||||
Operating loss carried back date | 2 years | |||||
Operating loss carried forward date | 20 years | |||||
Assumed revenue generated in each year | 287,000,000 | |||||
Net operating loss carry forwards | 36,000 | 379,000 | ||||
Interest or penalties | 0 | 0 | ||||
Future tax benefits | 145,200,000 | |||||
Increase in deferred tax assets, percentage | 85.00% | |||||
Increase in deferred tax assets additional paid-in capital in stockholders equity , percentage | 15.00% | |||||
Company estimated payments made to HFF Holdings | 134,200,000 | |||||
Increase (Decrease) in deferred tax assets | -800,000 | -800,000 | ||||
Deferred tax assets decreased due to valuation allowances | -700,000 | -700,000 | ||||
Tax benefit relating to the Section 754 basis step-up | 42,226,000 | 34,578,000 | 8,661,000 | |||
Payable under the tax receivable agreement | 10,660,000 | 10,368,000 | 17,741,000 | |||
HFF Holding [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Amount of cash savings to HFF holdings | 85.00% | 85.00% | ||||
Tax benefit relating to the Section 754 basis step-up | 12,500,000 | 12,200,000 | ||||
Payable under the tax receivable agreement | 10,400,000 | 10,700,000 | 10,400,000 | 10,700,000 | ||
Term of tax receivable agreement in aggregate amount paid | 52,600,000 | |||||
Anticipated amount to be paid under tax receivable agreement to HFF Holdings 2015 | 10,800,000 | |||||
Federal [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Net operating loss carry forwards | 0 | |||||
Amount of cash savings to HFF holdings | 85.00% | |||||
State and Local Income Tax [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ||||||
Net operating loss carry forwards | $36,000 | |||||
Net operating loss carry forwards expiration date | 2028 | |||||
Amount of cash savings to HFF holdings | 85.00% |
Noncontrolling_Interest_Additi
Noncontrolling Interest - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2009 |
PartnershipUnit | ||||||
Class of Stock [Line Items] | ||||||
Partnership units | 2 | |||||
Number of partnership units in each operating partnership to be converted | 1 | |||||
Number of common stock to be issued upon conversion | 1 | |||||
HFF Holdings [Member] | ||||||
Class of Stock [Line Items] | ||||||
Partners' capital eliminated from equity and non controlling interest | 6.4 | |||||
Partnership units owned by HFF Holdings | 20,355,000 | |||||
Percentage of operating partnership owned | 0.00% | |||||
HFF Holdings [Member] | Class A Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Partnership units owned by HFF Holdings | 20,355,000 | |||||
Partnership units exchanged for equal amount of shares of Class A common stock | 133,142 | 18,000 | 845,947 | 997,089 | ||
Shares effective by registering statement for offering and sale by partnership of Class A shares | 20,355,000 | |||||
HFF Holdings [Member] | Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of Class B common stock, net, shares | 1 | |||||
Economic rights per stock | 0 |
Noncontrolling_Interest_Summar
Noncontrolling Interest - Summary of Noncontrolling Interest (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2012 |
Noncontrolling Interest [Abstract] | |||||
Net income from operating partnerships | $29,402 | $17,083 | $19,039 | $6,124 | $71,648 |
Noncontrolling interest ownership percentage | 0.00% | 0.00% | |||
Noncontrolling interest | $47 | $75 | $121 | $243 |
Noncontrolling_Interest_Summar1
Noncontrolling Interest - Summary of Noncontrolling Interest (Parenthetical) (Detail) (HFF Holdings [Member]) | Sep. 30, 2012 | Aug. 31, 2012 | Jul. 31, 2012 | Jun. 30, 2012 | 31-May-12 | Apr. 30, 2012 | Mar. 31, 2012 | Feb. 29, 2012 | Jan. 31, 2012 |
HFF Holdings [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership percentage in partnership | 0.00% | 0.36% | 0.36% | 0.38% | 0.39% | 0.41% | 0.43% | 2.71% | 2.71% |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Feb. 06, 2014 | Feb. 13, 2015 | Jan. 15, 2014 | Jan. 20, 2015 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||||
Aggregate dividend paid | $68,166 | $56,337 | |||||
Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 175,000,000 | 175,000,000 | |||||
Common stock, par value | $0.01 | $0.01 | |||||
Common stock, shares issued | 38,125,363 | 37,498,796 | |||||
Class A Common Stock [Member] | Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted stock granted for unvested and vested | 42,108 | ||||||
Class A Common Stock [Member] | Subsequent Event [Member] | Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted stock granted for unvested and vested | 49,383 | ||||||
Class A Common Stock [Member] | HFF Holding [Member] | |||||||
Class of Stock [Line Items] | |||||||
Special cash dividend | $1.83 | ||||||
Aggregate dividend paid | 68,200 | ||||||
Dividends payable, declaration date | 20-Jan-15 | ||||||
Dividends payable, date of record | 2-Feb-15 | ||||||
Dividends payable, payment date | 13-Feb-15 | ||||||
Class A Common Stock [Member] | HFF Holding [Member] | Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Special cash dividend | $1.80 | ||||||
Aggregate dividend paid | 67,800 | ||||||
Class A Common Stock [Member] | HFF Holdings [Member] | |||||||
Class of Stock [Line Items] | |||||||
Voting rights per common stock | 1 | ||||||
Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 1 | ||||||
Common stock, par value | $0.01 | ||||||
Common stock, shares issued | 1 | ||||||
Common Class B [Member] | HFF Holdings [Member] | |||||||
Class of Stock [Line Items] | |||||||
Economic rights per stock | 0 |
Earning_Per_Share_Summary_of_N
Earning Per Share - Summary of Net Income and Weighted Average Shares Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $26,945 | $18,026 | $12,608 | $3,707 | $22,665 | $13,345 | $13,100 | $2,316 | $61,286 | $51,426 | $44,105 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 37,758,519 | 37,345,918 | 36,917,096 | ||||||||
Diluted | 37,982,351 | 37,745,685 | 37,151,792 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Stock units and stock options included in weighted average shares | 149,229 | 130,418 | 149,229 | 130,418 |
Stock Options [Member] | ||||
Earnings Per Share [Line Items] | ||||
Stock units and stock options included in weighted average shares | 0 | 0 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Calculations of Basic and Diluted Net Income per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Numerator: | |||||||||||||||||||
Net income | $26,945 | $18,026 | $12,608 | $3,707 | $22,665 | $13,345 | $13,100 | $2,316 | $61,286 | $51,426 | $44,105 | ||||||||
Denominator: | |||||||||||||||||||
Basic weighted average number of shares of Class A common stock | 37,758,519 | 37,345,918 | 36,917,096 | ||||||||||||||||
Add - dilutive effect of: | |||||||||||||||||||
Weighted average common shares outstanding - diluted | 37,982,351 | 37,745,685 | 37,151,792 | ||||||||||||||||
Basic net income per share of Class A common stock | $0.71 | [1] | $0.48 | [1] | $0.33 | [1] | $0.10 | [1] | $0.61 | [1] | $0.36 | [1] | $0.35 | [1] | $0.06 | [1] | $1.62 | $1.38 | $1.19 |
Diluted earnings per share of Class A common stock | $0.71 | [1] | $0.47 | [1] | $0.33 | [1] | $0.10 | [1] | $0.60 | [1] | $0.35 | [1] | $0.35 | [1] | $0.06 | [1] | $1.61 | $1.36 | $1.18 |
Basic Earnings Per Share of Class A Common Stock | Class A Common Stock [Member] | |||||||||||||||||||
Numerator: | |||||||||||||||||||
Net income | 26,945 | 22,665 | 61,286 | 51,426 | |||||||||||||||
Denominator: | |||||||||||||||||||
Basic weighted average number of shares of Class A common stock | 37,826,940 | 37,378,661 | 37,758,519 | 37,345,918 | |||||||||||||||
Add - dilutive effect of: | |||||||||||||||||||
Basic net income per share of Class A common stock | $0.71 | $0.61 | $1.62 | $1.38 | |||||||||||||||
Diluted Earnings Per Share of Class A Common Stock | Class A Common Stock [Member] | |||||||||||||||||||
Numerator: | |||||||||||||||||||
Net income | $26,945 | $22,665 | $61,286 | $51,426 | |||||||||||||||
Denominator: | |||||||||||||||||||
Basic weighted average number of shares of Class A common stock | 37,826,940 | 37,378,661 | 37,758,519 | 37,345,918 | |||||||||||||||
Add - dilutive effect of: | |||||||||||||||||||
Unvested restricted stock units | 357,713 | 537,215 | 198,619 | 378,594 | |||||||||||||||
Stock options | 25,250 | 23,912 | 25,213 | 21,173 | |||||||||||||||
Weighted average common shares outstanding - diluted | 38,209,903 | 37,939,788 | 37,982,351 | 37,745,685 | |||||||||||||||
Diluted earnings per share of Class A common stock | $0.71 | $0.60 | $1.61 | $1.36 | |||||||||||||||
[1] | Earnings per share were computed independently for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the year. |
Concentrations_Additional_Info
Concentrations - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
TEXAS | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 25.00% | 25.20% |
CALIFORNIA | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 12.70% | 12.90% |
FLORIDA | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 7.80% | 6.30% |
ILLINOIS | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 6.10% | 5.50% |
NEW YORK | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 5.00% | |
MASSACHUSETTS | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 5.00% | |
Other Region [Member] | ||
Principal Transaction Revenue [Line Items] | ||
Capital Market Service Revenue | 5.90% | 6.10% |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 9 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Affiliates | ||||||
Related Party Transaction [Line Items] | ||||||
Number of affiliates on behalf payment made | 2 | |||||
Net receivable from affiliates | $2,000 | $0 | ||||
Payments under the tax receivable agreement | 10,660,000 | 10,368,000 | 17,741,000 | |||
Percentage of retained cash savings in income tax | 15.00% | |||||
HFF Holding [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of tax receivable agreement | 85.00% | |||||
Payments under the tax receivable agreement | 10,700,000 | 10,400,000 | 10,700,000 | 10,400,000 | ||
Chief Executive Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 900,000 | 900,000 | ||||
Gibson [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 900,000 | 900,000 | ||||
Thornton [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 700,000 | 700,000 | ||||
Fowler [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 400,000 | 400,000 | ||||
Galloway [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 300,000 | 200,000 | ||||
Lawton [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 400,000 | 400,000 | ||||
Sansosti and de Zarraga [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under the tax receivable agreement | 300,000 | 200,000 | ||||
Affiliate 1 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments on behalf of affiliates | 0 | 488 | ||||
Received payments from affiliates | 0 | 172,834 | ||||
Affiliate 2 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments on behalf of affiliates | $1,617 | $48,481 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Payment to HFF holding | $10,700,000 | $10,400,000 | |
Actual cash savings realized by company | 85.00% | 85.00% | |
Liability to HFF Holdings | 11,621,000 | 10,088,000 | |
Anticipated payment to HFF holding | 10,800,000 | ||
Accrued additional compensation to newly hired transaction professionals | 3,300,000 | 2,600,000 | |
Federal [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Amount of cash savings to HFF holdings | 85.00% | ||
State and Local Income Tax [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Amount of cash savings to HFF holdings | 85.00% | ||
Minimum [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Payments under compensation arrangement, Period | 2016 | ||
Maximum [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Payments under compensation arrangement, Period | 2018 | ||
HFF Holding [Member] | |||
Summary Of Commitments And Contingent Liabilities [Line Items] | |||
Amount of cash savings to HFF holdings | 85.00% | 85.00% | |
Liability to HFF Holdings | $134,200,000 | $145,600,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Selected Quarterly Financial Data (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net revenue | $142,489 | $112,611 | $94,787 | $76,031 | $130,968 | $89,414 | $81,008 | $54,215 | $425,918 | $355,605 | $284,974 | ||||||||
Operating (loss) income | 37,220 | 25,783 | 18,006 | 3,818 | 36,043 | 18,645 | 15,410 | -121 | 84,827 | 69,977 | 50,117 | ||||||||
Interest and other income, net | 7,631 | 4,144 | 3,241 | 2,910 | 2,943 | 3,546 | 6,424 | 4,187 | 17,926 | 17,100 | 20,049 | ||||||||
Increase decrease in payable under the tax receivable agreement | 299 | 501 | -701 | -339 | |||||||||||||||
Net income | $26,945 | $18,026 | $12,608 | $3,707 | $22,665 | $13,345 | $13,100 | $2,316 | $61,286 | $51,426 | $44,105 | ||||||||
Per share data | |||||||||||||||||||
Income available to HFF, Inc. common stockholders - Basic | $0.71 | [1] | $0.48 | [1] | $0.33 | [1] | $0.10 | [1] | $0.61 | [1] | $0.36 | [1] | $0.35 | [1] | $0.06 | [1] | $1.62 | $1.38 | $1.19 |
Income available to HFF, Inc. common stockholders - Diluted | $0.71 | [1] | $0.47 | [1] | $0.33 | [1] | $0.10 | [1] | $0.60 | [1] | $0.35 | [1] | $0.35 | [1] | $0.06 | [1] | $1.61 | $1.36 | $1.18 |
[1] | Earnings per share were computed independently for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the year. |