Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-12043 | ||
Entity Registrant Name | OPPENHEIMER HOLDINGS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0080034 | ||
Entity Address, Address Line One | 85 Broad Street, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10004 | ||
City Area Code | 212 | ||
Local Phone Number | 668-8000 | ||
Title of 12(b) Security | Class A non-voting common stock | ||
Trading Symbol | OPY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 437.3 | ||
Documents Incorporated by Reference | The Company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders to be filed by the Company pursuant to Regulation 14A is incorporated into Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K. | ||
Entity Central Index Key | 0000791963 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,357,376 | ||
Class B Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 99,665 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | New York, New York |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 28,835,000 | $ 112,433,000 |
Deposits with clearing organizations | 78,706,000 | 77,691,000 |
Restricted cash | 0 | 25,534,000 |
Receivable from brokers, dealers and clearing organizations | 284,696,000 | 206,077,000 |
Receivable from customers, net of allowance for credit losses of $345 ($350 in 2022) | 1,059,892,000 | 1,202,764,000 |
Income tax receivable | 7,199,000 | 0 |
Securities purchased under agreements to resell | 5,842,000 | 0 |
Securities owned, including amounts pledged of $689,381 ($175,724 in 2022), at fair value | 795,312,000 | 498,594,000 |
Notes receivable, net | 62,640,000 | 57,495,000 |
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,732 ($97,751 in 2022) | 43,874,000 | 36,742,000 |
Right-of-use lease assets, net of accumulated amortization of $99,716 ($82,449 in 2022) | 140,554,000 | 142,630,000 |
Intangible assets | 34,340,000 | 32,100,000 |
Goodwill | 142,162,000 | 137,889,000 |
Other assets | 190,764,000 | 184,443,000 |
Total assets | 2,874,816,000 | 2,714,392,000 |
Liabilities | ||
Drafts payable | 9,002,000 | 0 |
Payable to brokers, dealers and clearing organizations | 361,890,000 | 550,006,000 |
Payable to customers | 369,287,000 | 456,475,000 |
Securities sold under agreements to repurchase | 640,382,000 | 161,009,000 |
Securities sold but not yet purchased, at fair value | 31,676,000 | 52,768,000 |
Accrued compensation | 256,244,000 | 239,136,000 |
Accounts payable and other liabilities | 82,810,000 | 102,202,000 |
Income tax payable | 0 | 4,130,000 |
Lease liabilities | 183,273,000 | 182,570,000 |
Senior secured notes, net of debt issuance costs of $392 ($616 in 2022) | 112,658,000 | 113,434,000 |
Deferred tax liabilities, net of deferred tax assets of $45,961 ($55,628 in 2022) | 38,355,000 | 32,241,000 |
Total liabilities | 2,085,577,000 | 1,893,971,000 |
Commitments and contingencies (Note 18) | ||
Redeemable non-controlling interests | 0 | 25,466,000 |
Stockholders' equity | ||
Common stock | 10,000 | 11,000 |
Additional paid-in capital | 31,774,000 | 28,628,000 |
Retained earnings | 756,468,000 | 764,178,000 |
Accumulated other comprehensive income | 914,000 | 1,416,000 |
Total Oppenheimer Holdings Inc. stockholders' equity | 789,166,000 | 794,233,000 |
Non-controlling interests (Note 2) | 73,000 | 722,000 |
Total Stockholders' Equity | 789,239,000 | 794,955,000 |
Total Liabilities, Redeemable Non-controlling Interests and Stockholders' Equity | $ 2,874,816,000 | $ 2,714,392,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for credit losses | $ 345 | $ 350 |
Securities owned, amounts pledged | 689,381 | 175,724 |
Net accumulated depreciation | 82,732 | 97,751 |
Right-of-use lease assets, accumulated amortization | 99,716 | 82,449 |
Unamortized debt issuance expense | 392 | 616 |
Deferred tax assets | $ 45,961 | $ 55,628 |
Common stock, par value (in dollars per share) | $ 0.001 | |
Class A Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 10,186,783 | 10,868,556 |
Common stock, outstanding (in shares) | 10,186,783 | 10,868,556 |
Class B Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 99,665 | 99,665 |
Common stock, issued (in shares) | 99,665 | 99,665 |
Common stock, outstanding (in shares) | 99,665 | 99,665 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE | |||
Commissions | $ 349,248 | $ 370,382 | $ 401,607 |
Advisory fees | 415,679 | 425,615 | 451,197 |
Investment banking | 117,665 | 127,529 | 435,870 |
Bank deposit sweep income | 172,807 | 104,558 | 15,557 |
Interest | 104,550 | 60,713 | 36,482 |
Principal transactions, net | 65,347 | 21,031 | 23,984 |
Other | 23,529 | 1,113 | 29,338 |
Total revenue | 1,248,825 | 1,110,941 | 1,394,035 |
EXPENSES | |||
Compensation and related expenses | 782,396 | 740,827 | 886,840 |
Communications and technology | 91,321 | 85,474 | 80,520 |
Occupancy and equipment costs | 66,002 | 59,897 | 60,069 |
Clearing and exchange fees | 24,928 | 25,566 | 22,306 |
Interest | 68,599 | 23,846 | 9,855 |
Other | 168,809 | 129,777 | 109,804 |
Total expenses | 1,202,055 | 1,065,387 | 1,169,394 |
Pre-tax income | 46,770 | 45,554 | 224,641 |
Income tax provision | 16,498 | 13,444 | 65,677 |
Net income | 30,272 | 32,110 | 158,964 |
Net income (loss) attributable to non-controlling interests, net of tax | 93 | (241) | 0 |
Net income attributable to Oppenheimer Holdings Inc. | $ 30,179 | $ 32,351 | $ 158,964 |
Earnings per share attributable to Oppenheimer Holdings Inc. | |||
Basic (in dollars per share) | $ 2.81 | $ 2.77 | $ 12.57 |
Diluted (in dollars per share) | $ 2.59 | $ 2.57 | $ 11.70 |
Weighted average shares outstanding | |||
Basic (in shares) | 10,736,166 | 11,666,194 | 12,642,306 |
Diluted (in shares) | 11,645,708 | 12,607,752 | 13,582,828 |
Period end shares outstanding (in shares) | 10,286,448 | 10,968,221 | 12,546,701 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) attributable to non-controlling interests | $ 30,272 | $ 32,110 | $ 158,964 |
Other comprehensive income (loss), net of tax | |||
Currency translation adjustment | (502) | (2,809) | 777 |
Comprehensive income | 29,770 | 29,301 | 159,741 |
Less net income (loss) attributable to non-controlling interests | 93 | (241) | 0 |
Comprehensive income attributable to Oppenheimer Holdings Inc. | $ 29,677 | $ 29,542 | $ 159,741 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS - USD ($) $ in Thousands | Total | Parent | Common stock ($0.001 par value per share) | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Non-controlling interests | ||||
Balance at beginning of year at Dec. 31, 2020 | [1] | $ 12 | $ 80,802 | $ 601,406 | $ 3,448 | $ 11,946 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of Class A non-voting common stock | [1] | 1 | 4,846 | ||||||||
Repurchase of Class A non-voting common stock for cancellation | [1] | (7,738) | |||||||||
Share-based expense | [1] | 10,514 | |||||||||
Vested employee share plan awards | [1] | (9,739) | |||||||||
Change in redemption value of redeemable non-controlling interests | [1] | $ 10,519 | (653) | (9,866) | |||||||
Net income (loss) attributable to non-controlling interests | 158,964 | 158,964 | [1],[2] | (11) | [1] | ||||||
Dividends paid | [1] | (19,444) | |||||||||
Currency translation adjustment | 777 | 777 | [1] | ||||||||
Balance at end of year at Dec. 31, 2021 | [1] | 825,265 | $ 823,196 | 13 | 78,032 | 740,926 | 4,225 | 2,069 | |||
Balance at beginning of year at Dec. 31, 2020 | [1] | 117,246 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Redemption of redeemable non-controlling interests | [1] | 0 | |||||||||
Change in redemption value of redeemable non-controlling interests | [1] | 10,519 | (653) | (9,866) | |||||||
Balance at end of year at Dec. 31, 2021 | [1] | $ 127,765 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Dividends paid per share (in dollars per share) | [1] | $ 1.54 | |||||||||
Issuance of Class A non-voting common stock | 2,924 | ||||||||||
Repurchase of Class A non-voting common stock for cancellation | (2) | (58,581) | (2,055) | ||||||||
Share-based expense | 11,555 | ||||||||||
Vested employee share plan awards | (5,081) | ||||||||||
Change in redemption value of redeemable non-controlling interests | $ 1,237 | (221) | (1,016) | ||||||||
Net income (loss) attributable to non-controlling interests | 32,110 | 32,351 | [2] | (241) | |||||||
Dividends paid | (7,044) | ||||||||||
Currency translation adjustment | (2,809) | (2,809) | |||||||||
Capital distribution to non-controlling interests | (90) | ||||||||||
Balance at end of year at Dec. 31, 2022 | 794,955 | 794,233 | 11 | 28,628 | 764,178 | 1,416 | 722 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Redemption of redeemable non-controlling interests | (103,536) | ||||||||||
Change in redemption value of redeemable non-controlling interests | 1,237 | (221) | (1,016) | ||||||||
Balance at end of year at Dec. 31, 2022 | $ 25,466 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Dividends paid per share (in dollars per share) | $ 0.60 | ||||||||||
Issuance of Class A non-voting common stock | 6,061 | ||||||||||
Repurchase of Class A non-voting common stock for cancellation | (1) | (3,936) | (31,437) | ||||||||
Share-based expense | 13,058 | ||||||||||
Vested employee share plan awards | (11,892) | ||||||||||
Change in redemption value of redeemable non-controlling interests | $ 689 | (145) | (544) | ||||||||
Net income (loss) attributable to non-controlling interests | 30,272 | 30,179 | [2] | 93 | |||||||
Dividends paid | (6,452) | ||||||||||
Currency translation adjustment | (502) | (502) | |||||||||
Capital distribution to non-controlling interests | (198) | ||||||||||
Balance at end of year at Dec. 31, 2023 | 789,239 | $ 789,166 | $ 10 | 31,774 | $ 756,468 | $ 914 | 73 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Redemption of redeemable non-controlling interests | (26,155) | ||||||||||
Change in redemption value of redeemable non-controlling interests | 689 | $ (145) | $ (544) | ||||||||
Balance at end of year at Dec. 31, 2023 | $ 0 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Dividends paid per share (in dollars per share) | $ 0.60 | ||||||||||
[1] (1) Certain prior period reported amounts were reclassified to conform to the current period presentation, See Note 2. (2) Attributable to Oppenheimer Holdings Inc. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS (Parenthetical) | Dec. 31, 2023 $ / shares |
Statement of Stockholders' Equity [Abstract] | |
Common stock, par value (in dollars per share) | $ 0.001 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) attributable to non-controlling interests | $ 30,272,000 | $ 32,110,000 | $ 158,964,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Depreciation and amortization of furniture, equipment and leasehold improvements | 9,924,000 | 7,605,000 | 7,994,000 |
Deferred income taxes | 6,457,000 | (14,616,000) | (792,000) |
Amortization of notes receivable | 15,966,000 | 13,741,000 | 13,427,000 |
Amortization of debt issuance costs | 219,000 | 248,000 | 250,000 |
Write-off of debt issuance costs | 5,000 | 61,000 | 0 |
Provision for (reversal of) credit losses | (5,000) | (2,955,000) | 2,896,000 |
Share-based compensation | 16,940,000 | 15,914,000 | 31,138,000 |
Amortization of right-of-use lease assets | 27,281,000 | 26,804,000 | 26,125,000 |
Gain on repurchase of senior secured notes | (51,000) | (235,000) | 0 |
Decrease (increase) in operating assets: | |||
Deposits with clearing organizations | (1,015,000) | (10,723,000) | 16,375,000 |
Receivable from brokers, dealers and clearing organizations | (78,619,000) | (36,175,000) | 33,592,000 |
Receivable from customers | 142,877,000 | 21,641,000 | (113,511,000) |
Income tax receivable | (7,199,000) | 0 | 0 |
Securities purchased under agreements to resell | (5,842,000) | 935,000 | (935,000) |
Securities owned | (296,718,000) | 135,910,000 | (23,987,000) |
Notes receivable | (21,111,000) | (17,253,000) | (21,249,000) |
Other assets | (11,246,000) | 16,412,000 | 65,814,000 |
Increase (decrease) in operating liabilities: | |||
Drafts payable | 9,002,000 | 0 | 0 |
Payable to brokers, dealers and clearing organizations | (188,116,000) | 127,949,000 | 162,146,000 |
Payable to customers | (87,188,000) | (483,000) | (45,849,000) |
Securities sold under agreements to repurchase | 479,373,000 | (116,313,000) | (65,116,000) |
Securities sold but not yet purchased | (21,092,000) | (19,190,000) | (54,213,000) |
Accrued compensation | 13,227,000 | (107,350,000) | 23,238,000 |
Income tax payable | (4,130,000) | (9,406,000) | 3,810,000 |
Accounts payable and other liabilities | (48,021,000) | (139,000) | 7,669,000 |
Cash provided by/(used in) operating activities | (18,810,000) | 64,492,000 | 227,786,000 |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | (17,056,000) | (16,311,000) | (8,268,000) |
Acquisition of BondWave LLC, net of cash consideration | (2,929,000) | 0 | 0 |
Proceeds from the settlement of Company-owned life insurance | 4,424,000 | 2,174,000 | 2,001,000 |
Cash used in investing activities | (15,561,000) | (14,137,000) | (6,267,000) |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | (6,452,000) | (7,044,000) | (19,444,000) |
Issuance of Class A non-voting common stock | 75,000 | 127,000 | 58,000 |
Repurchase of Class A non-voting common stock for cancellation | (35,124,000) | (60,636,000) | (7,737,000) |
Payments for employee taxes withheld related to vested share-based awards | (5,907,000) | (2,283,000) | (4,967,000) |
Payment of Company sponsored Initial Public Offering costs | 0 | 0 | (454,000) |
Contributions from non-controlling interests | 0 | 0 | 3,147,000 |
Proceeds from Company sponsored Initial Public Offering | 0 | 0 | 126,500,000 |
Distribution to non-controlling interests | (198,000) | (90,000) | 0 |
Redemption on redeemable non-controlling interests | (26,155,000) | (103,536,000) | 0 |
Repurchase of senior secured notes | (1,000,000) | (10,950,000) | 0 |
Debt issuance costs | 0 | 0 | (22,000) |
Decrease in bank call loans, net | 0 | (69,500,000) | (12,500,000) |
Cash provided by/(used in) financing activities | (74,761,000) | (253,912,000) | 84,581,000 |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (109,132,000) | (203,557,000) | 306,100,000 |
Cash and cash equivalents and restricted cash, beginning of year | 137,967,000 | 341,524,000 | 35,424,000 |
Cash and cash equivalents and restricted cash, end of year | 28,835,000 | 137,967,000 | 341,524,000 |
Reconciliation of cash and cash equivalents and restricted cash within the consolidated balance sheet: | |||
Cash and cash equivalents | 28,835,000 | 112,433,000 | 213,759,000 |
Restricted cash | 0 | 25,534,000 | 127,765,000 |
Total cash and cash equivalents and restricted cash | 28,835,000 | 137,967,000 | 341,524,000 |
Schedule of non-cash financing activities | |||
Employee share plan issuance | 9,376,000 | 4,288,000 | 7,361,000 |
Fair value of non-cash assets acquired | 6,658,000 | 0 | 0 |
Fair value of liabilities assumed in acquisition | 1,544,000 | 0 | 0 |
Contingent consideration for BondWave LLC | (1,395,000) | 0 | 0 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 68,399,000 | 22,810,000 | 10,089,000 |
Cash paid during the year for income taxes, net | $ 20,576,000 | $ 37,512,000 | $ 62,378,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The consolidated financial statements include the accounts of OPY and its consolidated subsidiaries (together, the "Company"). Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. The Company is headquartered in New York and has 90 retail branch offices in 25 states located throughout the United States and offices in Puerto Rico, Tel Aviv, Israel, Hong Kong, China, London, England, St. Helier, Isle of Jersey, Portugal and Geneva, Switzerland. The principal subsidiaries of OPY are Oppenheimer & Co. Inc. ("Oppenheimer"), a registered broker-dealer in securities and investment adviser under the Investment Advisers Act of 1940; Oppenheimer Asset Management Inc. ("OAM") and its wholly-owned subsidiary, Oppenheimer Investment Management LLC, both registered investment advisers under the Investment Advisers Act of 1940; Oppenheimer Trust Company of Delaware ("Oppenheimer Trust"), a limited purpose trust company that provides fiduciary services such as trust and estate administration and investment management; OPY Credit Corp., which conducts secondary trading activities related to the purchase and sale of loans, primarily on a riskless principal basis; Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey, Portugal, and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; and Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission. Oppenheimer owns Freedom Investments, Inc. ("Freedom"), a registered broker dealer in securities, which provides discount brokerage services, and Oppenheimer Israel (OPCO) Ltd., based in Tel Aviv, Israel, which provides investment services in the State of Israel and operates subject to the authority of the Israel Securities Authority. |
Summary of significant accounti
Summary of significant accounting policies and estimates | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies and estimates | Summary of significant accounting policies and estimates Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). Intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements. Change in Presentation Effective June 30, 2022, the Company reclassified certain stockholders' equity amounts on the consolidated balance sheet and consolidated statements of changes in stockholders' equity and redeemable non-controlling interests. The reclassification included separately presenting the par value of common stock, and combining previously disclosed share capital and contributed capital amounts in the currently reported additional paid-in capital amount. The reclassification had no impact on previously reported total stockholders’ equity amounts. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. In presenting the consolidated financial statements, management makes estimates regarding valuations of financial instruments, loans and allowances for credit losses, the outcome of legal and regulatory matters, goodwill and other intangible assets, share-based compensation plans and income taxes. Estimates, by their nature, are based on judgment and available information. Therefore, actual results could be materially different from these estimates. Financial Instruments and F ai r Value Financial Instruments Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. Fair Value Measurements Accounting guidance for the fair value measurement of financial assets defines fair value, establishes a framework for measuring fair value, establishes a fair value measurement hierarchy, and requires certain fair value measurement disclosures. Fair value, as defined by the accounting guidance, is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy established by this accounting guidance prioritizes the inputs used in valuation techniques into the following three categories (highest to lowest priority): Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs that are significant to the overall fair value measurement. The Company's financial instruments that are recorded at fair value generally are classified within Level 1 or Level 2 within the fair value hierarchy using quoted market prices or quotes from market makers or broker-dealers. Financial instruments classified within Level 1 are valued based on quoted market prices in active markets and consist of U.S. Treasury and corporate equities. Level 2 financial instruments primarily consist of investment grade and high-yield corporate debt, convertible bonds, U.S. Agency securities, mortgage and asset-backed securities, and municipal obligations. Financial instruments classified as Level 2 are valued based on quoted prices for similar assets and liabilities in active markets and quoted prices for identical or similar assets and liabilities in markets that are not active. Some financial instruments are classified within Level 3 within the fair value hierarchy as observable pricing inputs are not available due to limited market activity for the asset or liability. As of December 31, 2023 and December 31, 2022, the Company had $2.7 million and $31.8 million respectively, of auction rate securities ("ARS") in Level 3 assets. See note 8 for further details. Consolidation The Company consolidates all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("VIEs") where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company reviews factors, including the rights of the equity holders at risk and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the entity is a VIE. Under US GAAP, a general partner will not consolidate a partnership or similar entity under the voting interest model. See note 10 for further details. Financing Receivables The Company's financing receivables include customer margin loans, securities purchased under agreements to resell ("reverse repurchase agreements"), and securities borrowed transactions. The Company uses financing receivables to extend margin loans to customers, meet trade settlement requirements, and facilitate its matched-book arrangements and inventory requirements. The Company's financing receivables are secured by collateral received from clients and counterparties. In many cases, the Company is permitted to sell or re-pledge securities held as collateral. These securities may be used to collateralize repurchase agreements, to enter into securities lending agreements, to cover short positions or to fulfill the obligation of securities fails to deliver. The Company monitors the fair value of the collateral received on a daily basis and may require clients and counterparties to deposit additional collateral or return collateral pledged, when appropriate. Customer receivables, primarily consisting of customer margin loans collateralized by customer-owned securities, are stated net of allowance for credit losses. The Company reviews large customer accounts that do not comply with the Company's margin requirements on a case-by-case basis to determine the likelihood of collection and records an allowance for credit loss following that process. For small customer accounts that do not comply with the Company's margin requirements, the allowance for credit loss is generally recorded as the amount of unsecured or partially secured receivables. The Company also periodically makes loans to financial advisors and other revenue producers as part of its hiring process. These loans are recorded as notes receivable on its consolidated balance sheet. Allowances are established on these loans if the employee is no longer associated with the Company and the loan has not been promptly repaid. Legal and Regulatory Reserves The Company records reserves related to legal and regulatory proceedings in accounts payable and other liabilities. The determination of the amounts of these reserves requires significant judgment on the part of management. In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters where available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. When loss contingencies are not probable or cannot be reasonably estimated, the Company does not establish reserves. When determining whether to record a reserve, management considers many factors including, but not limited to, the amount of the claim; the stage and forum of the proceeding, the sophistication of the claimant, the amount of the loss, if any, in the client's account and the possibility of wrongdoing, if any, on the part of an employee of the Company; the basis and validity of the claim; previous results in similar cases; and applicable legal precedents and case law. Each legal and regulatory proceeding is reviewed with counsel in each accounting period and the reserve is adjusted as deemed appropriate by management. Any change in the reserve amount is recorded in the results of that period. The assumptions of management in determining the estimates of reserves may be incorrect and the actual disposition of a legal or regulatory proceeding could be greater or less than the reserve amount. Leases Right-of-use ("ROU") assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term, excluding non-base rent components such as fixed common area maintenance costs and other fixed costs such as real estate taxes and insurance. The discount rates used in determining the present value of leases are the Company’s incremental borrowing rates, developed based upon each lease’s term. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For operating leases, the ROU assets also include any prepaid lease payments and initial direct costs incurred and are reduced by lease incentives. For these leases, lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. Goodwill The Company's goodwill resides in its Private Client Division ("PCD") and Corporate/Other operating segment. Goodwill of a reporting unit is subject to at least an annual test for impairment to determine if the estimated fair value of a reporting unit is less than its carrying amount. Goodwill of a reporting unit is required to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Due to the volatility in the financial services sector and equity markets in general, determining whether an impairment of goodwill has occurred is increasingly difficult and requires management to exercise significant judgment. Goodwill within the Corporate/Other operating segment relates to the Company’s acquisition of BondWave LLC, which closed on December 29, 2023. Because the valuation of goodwill associated with this transaction was determined on the last business day of 2023, no impairment testing was deemed necessary. The Company's annual goodwill impairment analysis performed over the goodwill within the PCD reporting unit as of December 31, 2023 applied the same valuation methodologies with consistent inputs as that performed as of December 31, 2022. In estimating the fair value of the PCD reporting unit, the Company uses traditional standard valuation methods, including the market comparable approach and income approach. The market comparable approach is based on comparisons of the subject company to public companies whose stocks are actively traded ("Price Multiples") or to similar companies engaged in an actual merger or acquisition ("Precedent Transactions"). As part of this process, multiples of value relative to financial variables, such as earnings or stockholders' equity, are developed and applied to the appropriate financial variables of the subject company to indicate its value. The income approach involves estimating the present value of the subject company's future cash flows by using projections of the cash flows that the business is expected to generate, and discounting these cash flows at a given rate of return ("Discounted Cash Flow" or "DCF"). Each of these standard valuation methodologies requires the use of management estimates and assumptions. In its Price Multiples valuation analysis, the Company uses various operating metrics of comparable companies, including revenues, after-tax earnings, and EBITDA as well as price-to-book value ratios at a point in time. The Company analyzes prices paid in Precedent Transactions that are comparable to the business conducted in the PCD. The DCF analysis includes the Company's assumptions regarding discount rate, growth rates of the PCD's revenues, expenses, EBITDA, and capital expenditures, adjusted for current economic conditions and expectations. The Company weighs each of the three valuation methods equally in its overall valuation. Given the subjectivity involved in selecting which valuation method to use, the corresponding weightings, and the input variables for use in the analyses, it is possible that a different valuation model and the selection of different input variables could produce a materially different estimate of the fair value of the PCD reporting unit. Intangible Assets Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets carried at $32.7 million, which are not amortized, are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. The fair value of the trademarks and trade names was substantially in excess of their carrying value as of December 31, 2023. Defined-lived intangible assets are comprised of developed technology and customer relationships. These intangible assets carried at $1.6 million are amortized over their estimated lives and are periodically evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable from future undiscounted cash flows. Share-Based Compensation Plans As part of the compensation to employees and directors, the Company uses stock-based compensation, consisting of restricted stock, stock options and stock appreciation rights. In accordance with ASC Topic 718, "Compensation - Stock Compensation," the Company classifies the stock options and restricted stock awards as equity awards, which requires the compensation cost to be recognized in the consolidated income statements over the requisite service period of the award at grant date fair value and adjusted for actual forfeitures. The fair value of restricted stock awards is determined based on the grant date closing price of the Company's Class A non-voting common stock ("Class A Stock") adjusted for the present value of the dividend to be received upon vesting. The fair value of stock options is determined using the Black-Scholes model. Key assumptions used to estimate the fair value include the expected term and the expected volatility of the Company's Class A Stock over the term of the award, the risk-free interest rate over the expected term, and the Company's expected annual dividend yield. The Company classifies stock appreciation rights ("OARs") as liability awards, which requires the fair value to be remeasured at each reporting period until the award vests. The fair value of OARs is also determined using the Black-Scholes model at the end of each reporting period. The compensation cost is adjusted each reporting period for changes in fair value prorated for the portion of the requisite service period rendered. Revenue Recognition Brokerage Customers' securities and commodities transactions are reported on a settlement date basis, which is generally two Principal Transactions Transactions in proprietary securities and related revenue and expenses are recorded on a trade date basis. Securities owned and securities sold but not yet purchased are reported at fair value generally based upon quoted prices. Realized and unrealized changes in fair value are recognized in principal transactions, net in the period in which the change occurs. Investment Banking Fees Advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Retainer fees and engagement fees are recognized ratably over the service period. Underwriting fees are recorded when the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and the related expenses are presented gross on the consolidated income statements. Interest Interest revenue represents interest earned on margin debit balances, securities borrowed transactions, reverse repurchase agreements, fixed income securities, firm investments, and cash and cash equivalents. Interest revenue is recognized in the period earned based upon average or daily asset balances, contractual cash flows, and interest rates. Asset Management Asset management fees are generally recognized over the period the related service is provided based on the account value at the valuation date per the respective asset management agreements. In certain circumstances, OAM is entitled to receive performance (or incentive) fees when the return on assets under management ("AUM") exceeds certain benchmark returns or other performance targets. Performance fees are generally based on investment performance over a 12-month period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Asset management fees and performance fees are included in advisory fees in the consolidated income statements. Assets under management are not included as assets of the Company. Bank Deposit Sweep Income Bank deposit sweep income consists of revenues earned from the Advantage Bank Deposit Program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. The Company earns the fee paid on these deposits after administrative fees are paid to the administrator of the program. The fee earned in the period is recorded in bank deposit sweep income and the portion of interest credited to clients is recorded in interest expense in the consolidated income statements. Balance Sheet Cash and Cash Equivalents The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. Receivables from / Payables to Brokers, Dealers and Clearing Organizations Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. The Company receives cash or collateral in an amount generally in excess of the market value of securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis and may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Securities failed to deliver and receive represent the contract value of securities which have not been delivered or received, respectively, by settlement date. Receivables from / Payables to Customers Receivables from and payables to customers include balances arising from customer securities and margin transactions. Receivables from customers are recorded when margin loans are extended to customers and are recorded on a settlement date basis. Payables to customers are recorded when customers deposit cash into their accounts and are recorded on a settlement date basis. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Reverse repurchase agreements and securities sold under agreements to repurchase ("repurchase agreements") are treated as collateralized financing transactions and are recorded at their contractual amounts plus accrued interest. The resulting interest income and expense for these arrangements are included in interest income and interest expense in the consolidated income statements. Additionally, the Company elected the fair value option for repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company presents the reverse repurchase and repurchase transactions on a net-by-counterparty basis when the specific offsetting requirements are satisfied. Notes Receivable Notes receivable primarily represent recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 10 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. Amortization of notes receivable is included in the consolidated income statements in compensation and related expenses. Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation of furniture, fixtures, and equipment is provided on a straight-line basis generally over 3 to 7 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. Drafts Payable Drafts payable represent amounts drawn by the Company against a bank. Bank Call Loans Bank call loans are generally payable on demand and bear interest at various rates, and such loans are collateralized by firm and/or customer's margin securities. Foreign Currency Translations Foreign currency balances have been translated into U.S. dollars as follows: monetary assets and liabilities at exchange rates prevailing at period end; revenue and expenses at average rates for the period; gains or losses resulting from translating foreign currency financial statements, net of related tax effects, are reflected in accumulated other comprehensive income in the consolidated balance sheets. The functional currency of the overseas operations is the local currency in each location except for Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited which have the U.S. dollar as their functional currency. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest and penalties accruing on unrecognized tax benefits in pre-tax income as interest expense and other expense, respectively, in its consolidated income statements. The Company permanently reinvests eligible earnings of its foreign subsidiaries and, accordingly, does not accrue any U.S. income taxes that would arise if such earnings were repatriated. OPY Acquisition Corp. I On October 26, 2021, OPY Acquisition Corp. I (“OHAA”) consummated its $126.5 million initial public offering (the “OHAA IPO”). OHAA is a special purpose acquisition company, incorporated in Delaware for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (a “Business Combination”). OPY Acquisition LLC I (the “Sponsor”), a Delaware series limited liability company and the Company’s subsidiary, is the sponsor of OHAA. The Company and its employees control OHAA through the Sponsor’s ownership of Class A founder shares of OHAA. As a result, both OHAA and the Sponsor are recorded in the Company's consolidated financial statements. Upon IPO completion, funds totaling $127.8 million, including proceeds from the OHAA IPO of $126.5 million and $1.3 million investment from the Sponsor, were held in a trust account until the earlier of (i) the completion of a Business Combination or (ii) ten On October 26, 2023, OHAA’s stockholders approved an amendment to its certificate of incorporation to extend the deadline by which it must complete its initial business combination from October 30, 2023 to June 30, 2024 on a month-to-month basis. However, a fter careful consideration of the current SPAC market and after having completed an extensive search, OHAA determined it would be unable to deliver and fund a high quality value enhancing transaction to stockholders despite the extension. Therefore, on December 18, 2023, OHAA determined not to further extend the term it has to complete an initial business combination and instead announced its intention to dissolve and liquidate. On December 28, 2023, all OHAA Class A ordinary shares were cancelled with shareholders receiving their respective share redemption amounts. Accordingly, there were no “Redeemable non-controlling interests” or restricted cash balances associated with the publicly held OHAA Class A ordinary shares recorded on the Company’s consolidated balance sheet as of December 31, 2023. The remaining steps of OHAA’s dissolution are expected to be completed in the first quarter of 2024. Oppenheimer Principal Investments LLC Oppenheimer Principal Investments LLC ("OPI") is a Delaware special purpose "Series" limited liability company formed in December 2020 and designed to retain and reward talented employees of the Company, primarily in connection with the deployment of Company capital into successful private market investments, and also in connection with the Company's receipt of non-cash compensation from investment banking assignments. OPI is designed to promote alignment of Company, client and employee interests as they relate to profitable investment opportunities. This program acts as an incentive for senior employees to identify attractive private investments for the Company and its clients, and as a retention tool for key employees of the Company. OPI treats its members as partners for tax purposes generally and with respect to the separate Series formed to participate in (i) the incentive fees generated by successful client investments in the Company's Private Market Opportunities program, or (ii) principal investments made by the Company or a portion of the gains thereon, either through the outright purchase of an investment or consideration earned in lieu of an investment banking fee or other transaction fee. Employees who become members of a Series receive a "profit interest", as that term is used in IRS regulations, and receive an allocation of capital appreciation of the investment held by the particular Series that exceeds a threshold amount established for each Series. Participating employees are also subject to vesting and forfeiture requirements for each Series investment. Vested profit interests are accounted for as compensation expense under FASB Topic ASC 710. Additionally, the Company’s policy is to consolidate those entities where it owns the majority voting interests. The Company owns the majority voting interest of OPI through Oppenheimer Alternative Investment Management (“OAIM”), the managing member of OPI and a subsidiary of OAM. Pursuant to the Company’s policy for consolidation, the Company consolidates OPI. Non-controlling Interests Non-controlling interests represents ownership interests in the Sponsor of OHAA. For the year ended December 31, 2023, the net gain (net of taxes) attributed to non-controlling interests was $93,000. For the year ended December 31, 2022, the net loss (net of taxes) attributed to non-controlling interests was$241,000. Restricted Cash |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On December 29, 2023, the Company acquired 100% of the membership interests of BondWave LLC, a cloud-based financial markets software as a service provider that offers institutions active in fixed income markets with an integrated suite of portfolio analytics, transaction analytics and proprietary data solutions. Under the terms of the agreement, the Company paid approximately $3.6 million on closing, with the potential for additional contingent payments to be made within 18 months after the closing date. The Company accounted for the acquisition under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” The Company allocated $4.3 million of the purchase price to goodwill, $2.2 million to definite-lived intangible assets, $625 thousand to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill, which has been allocated to the “Corporate/Other” segment, primarily reflects the |
Financial Instruments - Credit
Financial Instruments - Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Financial Instruments - Credit Losses | Financial Instruments - Credit Losses Under ASC 326 "Financial Instruments - Credit Losses", the Company can elect to use an approach to measure the allowance for credit losses using the fair value of collateral where the borrower is required to, and reasonably expected to, continually adjust and replenish the amount of collateral securing the instrument to reflect changes in the fair value of such collateral. The Company has elected to use this approach for securities borrowed, margin loans, and reverse repurchase agreements. No material historical losses have been reported on these assets. See note 9 for details. As of December 31, 2023, the Company has $62.6 million of notes receivable. Notes receivable primarily represents recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 10 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. At this point any uncollected portion of the notes gets reclassified into a defaulted notes category. The allowance for uncollectibles is a valuation account that is deducted from the amortized cost basis of the defaulted notes balance to present the net amount expected to be collected. Balances are charged-off against the allowance when management deems the amount to be uncollectible. The Company reserves 100% of the uncollected balance of defaulted notes which are five years and older and applies an expected loss rate to the remaining balance. The expected loss rate is based on historical collection rates of defaulted notes. The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and other relevant factors. For the year ended December 31, 2023, no adjustments were made to the expected loss rates. The Company will continuously monitor the effect of these factors on the expected loss rate and adjust it as necessary. The allowance is measured on a pool basis as the Company has determined that the entire defaulted portion of notes receivable has similar risk characteristics. As of December 31, 2023, the uncollected balance of defaulted notes was $7.1 million and the allowance for uncollectibles was $3.9 million. The allowance for uncollectibles consisted of $1.7 million related to defaulted notes balances (five years and older) and $2.2 million (under five years). The following table presents the disaggregation of defaulted notes by year of default as of December 31, 2023: (Expressed in thousands) As of December 31, 2023 2023 $ 2,497 2022 285 2021 1,837 2020 423 2019 314 2018 and prior 1,709 Total $ 7,065 The following table presents activity in the allowance for uncollectibles of defaulted notes for the years ended December 31, 2023 and 2022: (Expressed in thousands) For the Year Ended December 31, 2023 2022 Beginning balance $ 4,327 $ 4,923 Additions and other adjustments (458) (596) Ending balance $ 3,869 $ 4,327 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for office space and equipment expiring at various dates through 2034. The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the firm as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 90 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Munich, Germany, Tel Aviv, Israel and Hong Kong, China. The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year. Substantially all of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a consolidated subsidiary and 100% owned by the Company. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at the Company's sole discretion. The Company did not include the renewal options as part of the right of use assets and liabilities. The depreciable life of assets and leasehold improvements is limited by the expected lease term. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2023, the Company had right-of-use operating lease assets of $140.6 million (net of accumulated amortization of $99.7 million) which are comprised of real estate leases of $137.9 million (net of accumulated amortization of $97.1 million) and equipment leases of $2.7 million (net of accumulated amortization of $2.6 million). As of December 31, 2023, the Company had operating lease liabilities of $183.3 million which are comprised of real estate lease liabilities of $180.6 million and equipment lease liabilities of $2.7 million. The Company had no finance leases as of December 31, 2023. As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. The Company used the incremental borrowing rate as of the lease commencement date for the operating leases that commenced subsequent to January 1, 2019. The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of December 31, 2023 and December 31, 2022, respectively: As of December 31, 2023 December 31, 2022 Weighted average remaining lease term (in years) 6.35 6.82 Weighted average discount rate 7.72% 6.66% The following table presents operating lease costs recognized for the years ended December 31, 2023 and December 31, 2022, respectively, which are included in occupancy and equipment costs on the consolidated income statements: (Expressed in thousands) For the Year Ended For the Year Ended Operating lease costs: Real estate leases - Right-of-use lease asset amortization $ 25,568 $ 25,128 Real estate leases - Interest expense 13,413 12,996 Equipment leases - Right-of-use lease asset amortization 1,717 1,672 Equipment leases - Interest expense 184 152 The maturities of lease liabilities as of December 31, 2023 are as follows: (Expressed in thousands) As of 2024 $ 43,885 2025 38,759 2026 36,757 2027 34,823 2028 21,660 After 2028 58,081 Total lease payments $ 233,965 Less interest (50,692) Present value of lease liabilities $ 183,273 As of December 31, 2023, the Company had $5.8 million of additional operating leases that have not yet commenced. ($40.2 million as of December 31, 2022). |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenues from contracts with customers Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of its past experiences, the time period during which uncertainties are expected to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Commissions Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares, which consists of a fixed fee amount and a variable amount. The Company recognizes mutual fund income at a point in time on trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. The ongoing distribution fees for distributing investment products from mutual fund companies are generally considered variable consideration because they are based on the value of AUM and are uncertain on trade date. The Company recognizes distribution fees over the investment period as the amounts become known and the portion recognized in the current period may relate to distribution services performed in prior periods. Mutual fund income is generally received within 90 days. Advisory Fees The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds, asset-based programs and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client AUM exceeds a specified benchmark return or other performance targets over a 12-month measurement period are met. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days. Investment Banking The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that time. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and related expenses are presented gross on the consolidated income statements. Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions. Such revenue and fees are primarily recorded at a point in time when services for the performance obligations have been completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon a completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts. Bank Deposit Sweep Income Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days. Disaggregation of Revenue The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the years ended December 31, 2023 and 2022: For the Year Ended December 31, 2023 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 155,039 $ — $ 162,706 $ 23 $ 317,768 Mutual fund income 31,457 — 7 16 31,480 Advisory fees 319,191 96,259 — 229 415,679 Investment banking - capital markets 7,543 — 40,499 — 48,042 Investment banking - advisory — — 69,623 — 69,623 Bank deposit sweep income 172,807 — — — 172,807 Other 15,500 (1) 1,436 166 17,101 Total revenues from contracts with customers 701,537 96,258 274,271 434 1,072,500 Other sources of revenue: Interest 85,105 — 15,196 4,249 104,550 Principal transactions, net 3,400 — 55,572 6,375 65,347 Other 11,712 (7,825) 858 1,683 6,428 Total other sources of revenue 100,217 (7,825) 71,626 12,307 176,325 Total revenue $ 801,754 $ 88,433 $ 345,897 $ 12,741 $ 1,248,825 (Expressed in thousands) For the Year Ended December 31, 2022 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 159,441 $ — $ 179,694 $ 40 $ 339,175 Mutual fund income 31,173 — 8 26 31,207 Advisory fees 326,240 99,224 117 34 425,615 Investment banking - capital markets 9,352 — 33,481 — 42,833 Investment banking - advisory 127 — 84,569 — 84,696 Bank deposit sweep income 104,558 — — — 104,558 Other 16,451 — 2,113 510 19,074 Total revenues from contracts with customers 647,342 99,224 299,982 610 1,047,158 Other sources of revenue: Interest 51,866 — 7,453 1,394 60,713 Principal transactions, net (4,013) — 29,610 (4,566) 21,031 Other (19,515) 18 776 760 (17,961) Total other sources of revenue 28,338 18 37,839 (2,412) 63,783 Total revenue $ 675,680 $ 99,242 $ 337,821 $ (1,802) $ 1,110,941 Contract Assets and Liabilities The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records contract assets when payment is due from a client conditioned on future performance or the occurrence of other events. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had receivables related to revenue from contracts with customers of $39.9 million and $32.8 million at December 31, 2023 and December 31, 2022, respectively. The Company had no significant impairments related to these receivables during the years ended December 31, 2023 and 2022. As of December 31, 2023 and December 31, 2022, the Company had no contract assets. Deferred revenue relates to IRA fees received annually in advance on customers' IRA accounts managed by the Company and retainer fees and other fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. Total deferred revenue was $1,118,000 and $900,000 for years ended December 31, 2023 and 2022, respectively. The following presents the Company's receivables and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the consolidated balance sheet: (Expressed in thousands) As of December 31, 2023 December 31, 2022 Receivables: Commission (1) $ 4,554 $ 3,533 Mutual fund income (2) 5,365 4,993 Advisory fees (3) 5,746 5,368 Bank deposit sweep income (4) 5,223 9,057 Investment banking fees (5) 12,847 5,136 Other 6,126 4,686 Total receivables $ 39,861 $ 32,773 Deferred revenue (payables): Investment banking fees (6) $ 1,118 $ 900 Total deferred revenue $ 1,118 $ 900 (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fees earned but not yet received. (6) Retainer fees and fees received from certain advisory transactions where the performance obligations have not yet been satisfied. Contract Costs The Company incurs incremental transaction-related costs to obtain and/or fulfill contracts associated with investment banking and advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. As of December 31, 2023, these contract costs were $1.9 million ($1.4 million as of December 31, 2022). There were no significant charges recognized in relation to these costs for year ended December 31, 2023. |
Receivable from and payable to
Receivable from and payable to brokers, dealers and clearing organizations | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Receivable from and payable to brokers, dealers and clearing organizations | Receivable from and payable to brokers, dealers and clearing organizations (Expressed in thousands) As of December 31, 2023 2022 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 158,612 $ 127,817 Receivable from brokers 65,639 49,125 Securities failed to deliver 29,656 9,099 Clearing organizations and other 30,789 20,036 Total $ 284,696 $ 206,077 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 284,987 $ 320,843 Payable to brokers 447 123 Securities failed to receive 23,809 62,646 Clearing organizations and other (1) 52,647 166,394 Total $ 361,890 $ 550,006 (1) The balances are primarily related to a trade/settlement date adjustment for positions in inventory. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. Valuation Techniques A description of the valuation techniques applied and inputs used in measuring the fair value of the Company's financial instruments is as follows: U.S. Government Obligations U.S. Treasury securities are valued using quoted market prices obtained from active market makers and inter-dealer brokers. U.S. Agency Obligations U.S. agency securities consist of agency issued debt securities and mortgage pass-through securities. Non-callable agency issued debt securities are generally valued using quoted market prices, quoted market prices for comparable securities or discounted cash flow models. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of mortgage pass-through securities are model driven with respect to spreads of the comparable to-be-announced ("TBA") security. Sovereign Obligations The fair value of sovereign obligations is determined based on quoted market prices when available or a valuation model that generally utilizes interest rate yield curves and credit spreads as inputs. Corporate Debt and Other Obligations The fair value of corporate bonds is estimated using recent transactions, broker quotations and bond spread information. Mortgage and Other Asset-Backed Securities The Company values non-agency securities collateralized by home equity and various other types of collateral based on external pricing and spread data provided by independent pricing services. When specific external pricing is not observable, the valuation is based on yields and spreads for comparable bonds. Municipal Obligations The fair value of municipal obligations is estimated using recently executed transactions, broker quotations, and bond spread information. Convertible Bonds The fair value of convertible bonds is estimated using recently executed transactions and dollar-neutral price quotations, where observable. When observable price quotations are not available, fair value is determined based on cash flow models using yield curves and bond spreads as key inputs. Corporate Equities Equity securities and options are generally valued based on quoted prices from the exchange or market where traded. To the extent quoted prices are not available, fair values are generally derived using bid/ask spreads. Auction Rate Securities ("ARS") As of December 31, 2023, the Company owned $2.7 million of ARS. This represents the amount that the Company holds as a result of ARS buybacks in previous years. The Company has valued the ARS securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. The fair value of ARS is particularly sensitive to movements in interest rates. However, an increase or decrease in short-term interest rates may or may not result in a higher or lower tender offer in the future or the tender offer price may not provide a reasonable estimate of the fair value of the securities. In such cases, other valuation techniques might be necessary. As of December 31, 2023, the Company had a valuation allowance totaling $0.2 million relating to ARS owned (which is included as a reduction to securities owned on the consolidated balance sheet). Investments In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company records these investments within other assets and uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment unless another method provides a better indicator of fair value. Changes in the fair value of these investments are reflected within other income in the consolidated financial statements. The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2023: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 446 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 5,072 2,367 N/A N/A $ 5,518 $ 2,367 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with diversified portfolios focusing on but not limited to technology companies, venture capital and global natural resources. The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2022: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 574 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 8,221 3,018 N/A N/A $ 8,795 $ 3,018 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with diversified portfolios, focusing on but not limited to technology companies, venture capital and global natural resources. The Company owns an investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of December 31, 2023, the fair value of the investment was $7.1 million and was categorized in Level 2 of the fair value hierarchy. Assets and Liabilities Measured at Fair Value The Company's assets and liabilities, recorded at fair value on a recurring basis, as of December 31, 2023 and 2022, have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 (Expressed in thousands) Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 34,789 $ — $ — $ 34,789 Securities owned: U.S. Treasury securities 695,346 — — 695,346 U.S. Agency securities — 2 — 2 Corporate debt and other obligations — 5,769 — 5,769 Mortgage and other asset-backed securities — 6,627 — 6,627 Municipal obligations — 35,333 — 35,333 Convertible bonds — 16,735 — 16,735 Corporate equities 27,170 — — 27,170 Money markets 5,400 217 — 5,617 Auction rate securities — — 2,713 2,713 Securities owned, at fair value 727,916 64,683 2,713 795,312 Investments (1) 1,872 16,913 — 18,785 Securities purchased under agreements to resell — 5,842 — 5,842 Derivative contracts: Futures 2 — — 2 TBAs — 11 — 11 Derivative contracts, total $ 2 $ 11 $ — $ 13 Total $ 764,579 $ 87,449 $ 2,713 $ 854,741 Liabilities U.S. Treasury securities $ 14,603 $ — $ — $ 14,603 Corporate debt and other obligations — 1,508 — 1,508 Mortgage and other asset-backed securities — 2 — 2 Convertible bonds — 2,136 — 2,136 Corporate equities 13,427 — — 13,427 Securities sold but not yet purchased, at fair value 28,030 3,646 — 31,676 Derivative contracts: Futures 735 — — 735 TBAs — 2 — 2 Derivative contracts, total 735 2 — 737 Total $ 28,765 $ 3,648 $ — $ 32,413 (1) Included in other assets on the consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 (Expressed in thousands) Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 24,937 $ — $ — $ 24,937 Securities owned: U.S. Treasury securities 362,815 — — 362,815 U.S. Agency securities — 6,012 — 6,012 Sovereign obligations — 9,502 — 9,502 Corporate debt and other obligations — 9,844 — 9,844 Mortgage and other asset-backed securities — 1,882 — 1,882 Municipal obligations — 30,126 — 30,126 Convertible bonds — 21,800 — 21,800 Corporate equities 24,837 — — 24,837 Auction rate securities — — 31,776 31,776 Securities owned, at fair value 387,652 79,166 31,776 498,594 Investments (1) — 7,068 — 7,068 Derivative contracts: TBAs — 1,762 — 1,762 Total $ 412,589 $ 87,996 $ 31,776 $ 532,361 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 25,006 $ — $ — $ 25,006 U.S. Agency securities — 3 — 3 Sovereign obligations — 9,048 — 9,048 Corporate debt and other obligations — 2,905 — 2,905 Convertible bonds — 4,428 — 4,428 Corporate equities 11,378 — — 11,378 Securities sold but not yet purchased, at fair value 36,384 16,384 — 52,768 Derivative contracts: Futures 44 — — 44 TBAs — 1,761 — 1,761 Derivative contracts, total 44 1,761 — 1,805 Total $ 36,428 $ 18,145 $ — $ 54,573 (1) Included in other assets on the consolidated balance sheet. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2023 and 2022: (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 2023 Beginning Total Realized and Unrealized Gains (2) Purchases Sales and Settlements Transfers Ending Assets Auction rate securities (1) $ 31,776 $ 3,159 $ — $ (32,222) $ — $ 2,713 (1) Represents auction rate securities that failed in the auction rate market. (2) Included in principal transactions in the consolidated income statement. (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 2022 Beginning Total Realized and Unrealized Losses (2) Purchases Sales and Settlements Transfers Ending Assets Auction rate securities (1) $ 31,804 $ (28) $ 1,375 $ (1,375) $ — $ 31,776 (1) Represents auction rate securities that failed in the auction rate market. (2) Included in principal transactions in the consolidated income statement. Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation). The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets. The fair value of the Company's senior secured notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the notes trade. Assets and liabilities not measured at fair value as of December 31, 2023 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 28,835 $ 28,835 $ — $ — $ 28,835 Deposits with clearing organization 43,917 43,917 — — 43,917 Receivable from brokers, dealers and clearing organizations: Securities borrowed 158,612 — 158,612 — 158,612 Receivables from brokers 65,639 — 65,639 — 65,639 Securities failed to deliver 29,656 — 29,656 — 29,656 Clearing organizations and Other 30,780 — 30,780 — 30,780 $ 284,687 — $ 284,687 — $ 284,687 Receivable from customers 1,059,892 — 1,059,892 — 1,059,892 Notes receivable, net 62,640 — 62,640 — 62,640 Investments (1) 90,999 — 90,999 — 90,999 (1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $89 million of this balance. This balance is included within other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 9,002 $ 9,002 $ — $ — $ 9,002 Payables to brokers, dealers and clearing organizations: Securities loaned $ 284,987 — $ 284,987 — $ 284,987 Payable to brokers 447 — 447 — 447 Securities failed to receive 23,809 — 23,809 — 23,809 Clearing Organizations and Other 51,912 — 51,912 — 51,912 $ 361,155 — $ 361,155 — $ 361,155 Payables to customers 369,287 — 369,287 — 369,287 Securities sold under agreements to repurchase 640,382 — 640,382 — 640,382 Senior secured notes 113,050 — 109,838 — 109,838 Assets and liabilities not measured at fair value as of December 31, 2022 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 112,433 $ 112,433 $ — $ — $ 112,433 Restricted cash 25,534 25,534 — — 25,534 Deposits with clearing organization 52,754 52,754 — — 52,754 Receivable from brokers, dealers and clearing organizations: Securities borrowed 127,817 — 127,817 — 127,817 Receivables from brokers 49,125 — 49,125 — 49,125 Securities failed to deliver 9,099 — 9,099 — 9,099 Clearing organizations 20,035 — 20,035 — 20,035 206,076 — 206,076 — 206,076 Receivable from customers 1,202,764 — 1,202,764 — 1,202,764 Notes receivable, net 57,495 — 57,495 — 57,495 Investments (1) 79,322 — 79,322 — 79,322 (1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $77 million of this balance. This balance is included within other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Payables to brokers, dealers and clearing organizations: Securities loaned $ 320,843 $ — $ 320,843 $ — $ 320,843 Payable to brokers 123 — 123 — 123 Securities failed to receive 62,646 — 62,646 — 62,646 Other 166,350 — 166,350 — 166,350 549,962 — 549,962 — 549,962 Payables to customers 456,475 — 456,475 — 456,475 Securities sold under agreements to repurchase 161,009 — 161,009 — 161,009 Senior secured notes 114,050 — 113,233 — 113,233 Derivative Instruments and Hedging Activities The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the consolidated balance sheet. Foreign exchange hedges From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets other liabilities Derivatives used for trading and investment purposes Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury notes, Federal Funds, General Collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net. To-be-announced securities The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net. The notional amounts and fair values of the Company's derivatives as of December 31, 2023 and 2022 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2023 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 3,700 $ 11 Commodity contracts Futures 5,000 2 $ 8,700 $ 13 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 6,875,000 $ 735 Other contracts TBAs 3,700 2 $ 6,878,700 $ 737 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2022 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 1,775 $ 1,762 Forward reverse repurchase agreements 15,000 — Other 275 — $ 17,050 $ 1,762 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 1,912,500 $ 44 Other contracts TBAs 1,775 1,761 $ 1,914,275 $ 1,805 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the years ended December 31, 2023 and 2022: (Expressed in thousands) The Effect of Derivative Instruments in the Consolidated Income Statement For the Year Ended December 31, 2023 Types Description Location Net Gain Commodity contracts Futures Principal transactions revenue $ 2,842 Other contracts Foreign exchange forward contracts Other revenue 65 TBAs Principal transactions revenue 26 $ 2,933 (Expressed in thousands) The Effect of Derivative Instruments in the Consolidated Income Statement For the Year Ended December 31, 2022 Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 4,652 Other contracts Foreign exchange forward contracts Other revenue (28) TBAs Principal transactions revenue 60 $ 4,684 |
Collateralized transactions
Collateralized transactions | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Collateralized transactions | Collateralized transactions The Company enters into collateralized borrowing and lending transactions in order to meet customers' needs and earn interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. Government and Agency, asset-backed, corporate debt, equity, and non-U.S. Government and Agency securities. The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates. As of December 31, 2023 and 2022, the outstanding balance of bank call loans was zero. As of December 31, 2023, the Company had approximately $1.6 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $211.3 million under securities loan agreements. As of December 31, 2023, the Company had pledged $129.2 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers. As of December 31, 2023, the Company had no outstanding letters of credit. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving U.S. Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest. Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met. The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of December 31, 2023: (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 643,410 Securities loaned: Equity securities 284,987 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 928,397 The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of December 31, 2023 and 2022: As of December 31, 2023 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 8,870 $ (3,028) $ 5,842 $ — $ — $ 5,842 Securities borrowed (1) 158,612 — 158,612 (149,946) — 8,666 Total $ 167,482 $ (3,028) $ 164,454 $ (149,946) $ — $ 14,508 (1) Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 643,410 $ (3,028) $ 640,382 $ (632,521) $ — $ 7,861 Securities loaned (2) 284,987 — 284,987 (276,688) — 8,299 Total $ 928,397 $ (3,028) $ 925,369 $ (909,209) $ — $ 16,160 (2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. As of December 31, 2022 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 28,012 $ (28,012) $ — $ — $ — $ — Securities borrowed (1) 127,817 — 127,817 (127,365) — 452 Total $ 155,829 $ (28,012) $ 127,817 $ (127,365) $ — $ 452 (1) Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 189,021 $ (28,012) $ 161,009 $ (157,981) $ — $ 3,028 Securities loaned (2) 320,843 — 320,843 (308,535) — 12,308 Total $ 509,864 $ (28,012) $ 481,852 $ (466,516) $ — $ 15,336 (2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). As of December 31, 2023, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $151.9 million ($124.1 million as of December 31, 2022) and $8.8 million ($28.0 million as of December 31, 2022), respectively, of which the Company has sold and re-pledged approximately $61.5 million ($39.4 million as of December 31, 2022) under securities loaned transactions and $8.8 million under repurchase agreements ($28.0 million as of December 31, 2022). The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $689.4 million, as presented on the face of the consolidated balance sheet as of December 31, 2023 ($175.7 million as of December 31, 2022). The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations. The Company manages market risk of repurchase agreements and securities loaned by monitoring the market value of collateral held and the market value of securities receivable from others. It is the Company's policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices. Credit Concentrations Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to credit risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers, dealers and clearing organizations as of December 31, 2023 are receivables f ro m three major U.S. broker-dealers totaling approximately $107.6 million. The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on the settlement date, generally one two . In addition, the Company clears its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. through Global Prime Partners, Ltd, a global clearing financial institution located in the United Kingdom. The clearing organizations have the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. As of December 31, 2023, the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business. |
Variable interest entities ("VI
Variable interest entities ("VIEs") | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity [Abstract] | |
Variable interest entities ("VIEs") | Variable interest entities ("VIEs") The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing alternative investments to both its institutional and qualified retail clients. The Company's investment in and additional capital commitments to these hedge funds and private equity funds are considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed. The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of general and limited partner interests. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests and additional capital commitments represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests is included in other assets on the consolidated balance sheet. In addition, the Company serves as general partner of Oppenheimer Acquisition LLC I and Oppenheimer Acquisition LLC II (the "Sponsors"). They are sponsors of two special purpose acquisition companies, OHAA and Oppenheimer Acquisition Corp. II (the "SPACs”). Both the Sponsors and the SPACs are in the process of liquidating and dissolving, as indicated above. Until the liquidation and dissolutions are complete, the Sponsors and the SPACs will remain consolidated VIE's as the Company is the primary beneficiary. See note 2 for further details. The following table sets forth the total assets and liabilities of VIE's consolidated on our consolidated balance sheet: (Expressed in thousands) For the Years Ended December 31, 2023 2022 Asset Cash and cash equivalents $ 94 $ 1,694 Restricted Cash — 25,535 Other Assets 387 318 Total Assets $ 481 $ 27,547 Liabilities Other Liabilities 171 828 Total Liabilities $ 171 $ 828 |
Furniture, equipment and leaseh
Furniture, equipment and leasehold improvements | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Furniture, equipment and leasehold improvements | Furniture, equipment and leasehold improvements (Expressed in thousands) For the Years Ended December 31, 2023 2022 Furniture, fixtures and equipment $ 63,473 $ 76,070 Leasehold improvements 63,133 58,423 Total 126,606 134,493 Less accumulated depreciation (82,732) (97,751) Total $ 43,874 $ 36,742 Depreciation and amortization expense, included in occupancy and equipment costs in the consolidated income statements was $9.9 million, $7.6 million and $8.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Bank call loans
Bank call loans | 12 Months Ended |
Dec. 31, 2023 | |
Bank Call Loans [Abstract] | |
Bank call loans | Bank call loans Bank call loans, primarily payable on demand, bear interest at various rates. Details of the bank call loans are as follows: (Expressed in thousands, except percentages) 2023 2022 Year-end balance $ — $ — Weighted interest rate (at end of year) — % — % Maximum balance (at any month-end) 131,900 179,200 Average amount outstanding (during the year) 49,387 79,366 Average interest rate (during the year) 4.20 % 2.18 % Interest expense for the year ended December 31, 2023 on bank call loans was $2.9 million ($1.8 million in 2022 and $0.7 million in 2021). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt (Expressed in thousands) Issued Maturity Date December 31, 2023 December 31, 2022 5.50% Senior Secured Notes 10/1/2025 $ 113,050 $ 114,050 Unamortized Debt Issuance Cost (392) (616) $ 112,658 $ 113,434 5.50% Senior Secured Notes due 2025 (the "Notes") On September 22, 2020, in a private offering, the Company issued $125.0 million aggregate principal amount of 5.50% Senior Secured Notes due 2025 (the "Unregistered Notes") under an Indenture at an issue price of 100% of the principal amount. Interest on the Unregistered Notes is payable semi-annually on April 1st and October 1st. The Company used the net proceeds from the offering of the Unregistered Notes, along with cash on hand, to redeem in full our 6.75% Senior Secured Notes due July 1, 2022 (the "Old Notes") in the principal amount of $150.0 million (the Company held $1.4 million in treasury for a net outstanding amount of $148.6 million), and pay all related fees and expenses in relation thereto. On November 23, 2020, we completed an exchange offer in which we exchanged 99.8% of the Unregistered Notes for a like principal amount of Notes with identical terms, except that such new notes have been registered under the Securities Act. We did not receive any proceeds in the exchange offer. The Notes will mature on October 1, 2025 and bear interest at a rate of 5.50% per annum, payable semiannually on April 1st and October 1st, respectively, of each year. The Parent used the net proceeds from the offering of the Notes, along with cash on hand, to redeem in full its Old Notes, in the principal amount of $150.0 million (the Parent held $1.4 million in treasury for a net outstanding amount of $148.6 million), and pay all related fees and expenses in relation thereto. The cost to issue the Notes was $3.1 million, of which $1.9 million was paid to its subsidiary, (Oppenheimer & Co Inc., who served as the initial purchaser of the offering), and was eliminated in consolidation. The remaining $1.2 million was capitalized and is amortized over the term of the Notes. The Company has repurchased and may continue to seek to repurchase its Notes from time to time through, as applicable, tender offers, open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on a number of factors, including, but not limited to, the Company’s priorities for the use of cash, price, market and economic conditions, its liquidity requirements, and legal and contractual restrictions. During the year-ended December 31, 2022, the Company repurchased and cancelled $10.95 million aggregate principal amount of its Notes in the open market. During the first quarter of 2023, the Company repurchased and cancelled an additional $1.0 million aggregate principal amount of its Notes in the open market. As of December 31, 2023, $113.05 million aggregate principal amount of the Notes remain outstanding. The Indenture governing the Notes contains covenants which place restrictions on the incurrence of indebtedness, the payment of dividends, the repurchase of equity, the sale of assets, the issuance of guarantees, mergers and acquisitions and the granting of liens. These covenants are subject to a number of important exceptions and qualifications. These exceptions and qualifications include, among other things, a variety of provisions that are intended to allow the Company to continue to conduct its brokerage operations in the ordinary course of business. In addition, certain of the covenants will be suspended upon the Parent attaining an investment grade debt rating for the Notes from both S&P Global Ratings and Moody’s Investors Service, Inc. Pursuant to the Indenture, the following covenants apply to the Parent and its restricted subsidiaries, but generally do not apply, or apply only in part, to its Regulated Subsidiaries (as defined): • limitation on indebtedness and issuances of preferred stock, which restricts the Parent’s ability to incur additional indebtedness or to issue preferred stock; • limitation on restricted payments, which generally restricts the Parent’s ability to declare certain dividends or distributions, repurchase its capital stock or to make certain investments; • limitation on dividends and other payment restrictions affecting restricted subsidiaries or Regulated Subsidiaries, which generally limits the ability of certain of the Parent’s subsidiaries to pay dividends or make other transfers; • limitation on future Subsidiary Guarantors (as hereinafter defined), which prohibits certain of the Parent’s subsidiaries from guaranteeing its indebtedness or indebtedness of any restricted subsidiary unless the Notes are comparably guaranteed; • limitation on transactions with shareholders and affiliates, which generally requires transactions among the Parent’s affiliated entities to be conducted on an arm’s-length basis; • limitation on liens, which generally prohibits the Parent and its restricted subsidiaries from granting liens unless the Notes are comparably secured; and • limitation on asset sales, which generally prohibits the Parent and certain of its subsidiaries from selling assets or certain securities or property of significant subsidiaries. The Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable. As of December 31, 2023, we believe that the Parent was in compliance with all of its covenants. The Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by the Subsidiary Guarantors and future subsidiaries are required to guarantee the Notes pursuant to the indenture. The Notes are secured by a first-priority security interest in substantially all of the Parent’s and the Subsidiary Guarantors’ existing and future tangible and intangible assets, subject to certain exceptions and permitted liens. Interest expense on the Notes for the year ended December 31, 2023 was $6.2 million ($6.8 million for the year ended December 31, 2022). Interest paid on the Notes for the year ended December 31, 2023 was $6.2 million ($6.7 million for the year ended December 31, 2022). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company's authorized shares consists of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A Stock, par value $0.001 per share; and (c) 99,665 shares of Class B Stock, par value $0.001 per share. No Preferred Stock has been issued. 99,665 shares of Class B Stock have been issued and are outstanding. The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting. The following table reflects changes in the number of shares of Class A Stock outstanding for the years indicated: 2023 2022 Class A Stock outstanding, beginning of year 10,868,556 12,447,036 Issued pursuant to share-based compensation plans (note 17) 218,745 105,807 Repurchased and canceled (900,518) (1,684,287) Class A Stock outstanding, end of year 10,186,783 10,868,556 Stock buy-back On February 28, 2022, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 518,000 shares of the Company's Class A Stock, representing approximately 4.2% of its 12,322,073 then issued and outstanding shares of Class A Stock. This authorization supplemented the 12,407 shares that remained authorized and available under the Company's previous share repurchase program for a total of 530,407 shares authorized and available for repurchase at February 28, 2022. On May 24, 2022, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 550,000 shares of the Company's Class A Stock, representing approximately 4.6% of its 11,863,559 then issued and outstanding shares of Class A Stock. This authorization supplemented the 71,893 shares that remained authorized and available under the Company's previous share repurchase program for a total of 621,893 shares authorized and available for repurchase at May 24, 2022. On July 29, 2022, the Company's Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 536,500 shares of the Company's Class A Stock, representing approximately 4.8% of its 11,251,930 then issued and outstanding shares of Class A Stock. This authorization supplemented the 4,278 shares that remained authorized and available under the Company's previous share repurchase program for a total of 540,778 shares authorized. On December 13, 2022, the Company's Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 543,000 shares of the Company's Class A Stock, representing approximately 5.0% of its 10,867,660 then issued and outstanding shares of Class A Stock. This authorization supplemented the 144,034 shares that remained authorized and available under the Company's previous share repurchase program for a total of 687,034 shares authorized. On May 31, 2023, the Company announced the commencement of a modified “Dutch Auction” tender offer to purchase up to $30.0 million of its Class A Stock at a price not less than $34.00 per share or more than $40.00 per share. The Company completed its repurchases pursuant to the tender offer on July 6, 2023, when it successfully repurchased and cancelled 437,183 shares of Class A Stock at $40.00 per share for an aggregate purchase price of $17.49 million. As a result, the Company had 10,447,392 shares outstanding on July 6, 2023 after the purchase. During the year ended December 31, 2023, the Company purchased and canceled an aggregate of 463,335 shares of Class A Stock for a total consideration of $17.6 million ($38.07 per share) under its share repurchase program. As of December 31, 2023, 223,699 shares remained available to be purchased under its share repurchase program. During the year ended December 31, 2022, the Company purchased and canceled an aggregate of 1,684,287 shares of Class A Stock for a total consideration of $60.6 million ($36.00 per share) under its share repurchase program. As of December 31, 2022, 687,034 shares remained available to be purchased under the share repurchase program. On March 1, 2024, the Company's Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 442,711 shares of the Company's Class A Stock, representing approximately 5.0% of its 10,357,376 then issued and outstanding shares of Class A Stock. This authorization supplemented the 223,699 shares that remained authorized and available under the Company's previous share repurchase program for a total of 666,410 shares authorized. Share purchases will be made by the Company from time to time in the open market at the prevailing open market price using cash on hand, in compliance with the applicable rules and regulations of the New York Stock Exchange and federal and state securities laws and the terms of the Company's Notes. All shares purchased will be canceled. The share repurchase program is expected to continue indefinitely. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A Stock. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. Dividends |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net income over the weighted average number of shares of Class A Stock and Class B Stock outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method. Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Years Ended December 31, 2023 2022 2021 Basic weighted average number of shares outstanding 10,736,166 11,666,194 12,642,306 Net dilutive effect of share-based awards, treasury stock method (1) 909,542 941,558 940,522 Diluted weighted average number of shares outstanding 11,645,708 12,607,752 13,582,828 Net income attributable to Oppenheimer Holdings Inc. $ 30,179 $ 32,351 $ 158,964 Earnings per share attributable to Oppenheimer Holdings Inc. Basic $ 2.81 $ 2.77 $ 12.57 Diluted $ 2.59 $ 2.57 $ 11.70 (1) For the year ended December 31, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 115,950 shares of Class A Stock granted under share-based compensation arrangements. For the year ended December 31, 2022, the diluted net income per share computation did not include the anti-dilutive |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income tax expenses shown in the consolidated income statements are reconciled to amounts of tax that would have been payable from the application of the federal tax rate to pre-tax profit, as follows: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage U.S. federal statutory income tax $ 9,806 21.0 % $ 9,497 21.0 % $ 47,176 21.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 4,150 8.9 % 3,110 6.8 % 13,585 6.0 % Unrecognized tax benefit 45 0.1 % 180 0.4 % 59 — % Valuation allowance 964 2.1 % 1,054 2.3 % 1,121 0.5 % Non-taxable income (964) (2.1) % (1,083) (2.4) % (430) (0.2) % Provision to return adjustments (812) (1.7) % (316) (0.7) % 281 0.1 % Change in state and foreign tax rates (514) (1.1) % (660) (1.4) % 1,384 0.6 % Foreign tax rate differentials (146) (0.3) % (285) (0.6) % (223) (0.1) % Excess tax benefits from share-based awards (1,378) (2.9) % (471) (1.0) % (1,542) (0.7) % Non-deductible executive compensation 1,514 3.2 % 1,605 3.5 % 3,956 1.8 % Other non-deductible expenses 3,833 8.1 % 813 1.6 % 310 0.2 % Total income taxes $ 16,498 35.3 % $ 13,444 29.5 % $ 65,677 29.2 % Income tax expenses included in the consolidated income statements represent the following: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Current: U.S. federal tax $ 6,967 $ 18,862 $ 47,880 State and local tax 2,137 8,068 18,331 Non-U.S. operations 937 1,129 258 Total Current 10,041 28,059 66,469 Deferred: U.S. federal tax 5,207 (10,420) (1,745) State and local tax 919 (4,538) 790 Non-U.S. operations 331 343 163 Total Deferred 6,457 (14,615) (792) Total $ 16,498 $ 13,444 $ 65,677 Pre-tax income with respect to non-U.S. operations was $4.8 million for the year ended December 31, 2023. Pre-tax income with respect to non-U.S. operation was $7.7 million for the year ended December 31, 2022. Pre-tax loss with respect to non-U.S. operations was $1.2 million for the year ended December 31, 2021. The effective income tax rate for the year ended December 31, 2023 was 35.3% compared with 29.5% for the year ended December 31, 2022. The higher tax rate in the 2023 year was primarily due to the im pact of unfavorable permanent items. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: (Expressed in thousands) As of December 31, 2023 2022 Deferred tax assets: Deferred compensation $ 27,780 $ 27,161 Deferred rent and lease incentives 8,772 9,877 Net operating losses and credits 12,124 9,593 Receivable reserves 1,259 1,294 Accrued expenses 4,762 13,121 Auction rate securities reserves 62 1,394 Involuntary conversion 1,671 1,704 Other 981 958 Total deferred tax assets 57,411 65,102 Valuation allowance (9,581) (7,036) Deferred tax assets after valuation allowance 47,830 58,066 Deferred tax liabilities: Goodwill 40,984 41,775 Partnership investments 27,181 32,679 Company-owned life insurance 14,180 11,527 Depreciation 1,517 1,617 Other 303 272 Total deferred tax liabilities 84,165 87,870 Deferred tax liabilities, net $ (36,335) $ (29,804) The Company recognized deferred tax assets of $2 million at December 31, 2023 within other assets arising from net operating losses incurred by Oppenheimer Israel (OPCO) Ltd. The Company believes that realization of the deferred tax assets is more likely than not based on expectations of future taxable income in Israel. These net operating losses carry forward indefinitely and are not subject to expiration, provided that these subsidiaries and their underlying businesses continue operating normally (as is anticipated). As of December 31, 2023, the Company had deferred tax assets of $8.6 million arising from net operating losses incurred by Oppenheimer Europe Ltd and had recorded full valuation allowances, although the net operating losses carry forward indefinitely, the Company believes it is more likely than not that the Company will not be able to realize its deferred tax assets in the future. The net change during the year in the total valuation allowance is $3.4 million. The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. The Company has closed tax years through 2017 in the U.S. federal jurisdiction. The Company has unrecognized tax benefits of $1.2 million, $1.1 million and $0.3 million as of December 31, 2023, 2022 and 2021, respectively (as shown on the table below). Included in the balance of unrecognized tax benefits as of December 31, 2023 and 2022 were $977,000 and $847,000, respectively, of tax benefits for either year that, if recognized, would affect the effective tax rate. During the year ended December 31, 2023, the Company adde d $0.2 million and released $0.1 million related to state and local tax matters. The Company does not believe any unrecognized tax benefit will significantly increase or decrease within twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: (Expressed in thousands) 2023 2022 2021 Balance at beginning of year $ 1,072 $ 343 $ 212 Additions for tax positions of prior years 224 729 343 Settlements with taxing authorities (60) — (212) Balance at end of year $ 1,236 $ 1,072 $ 343 In its consolidated income statements, the Company records interest and penalties accruing on unrecognized tax benefits in pre-tax income as interest expense and other expense, respectively. For the year ended December 31, 2023, the Company added tax-related interest expense of $107,000, and for the years ended December 2022 and 2021, the Company released tax-related interest expense of $173,000 and $164,000, respectively, in its consolidated income statement. As of December 31, 2023 and 2022, the Company had an income tax-related interest payable of $322,000 and $214,000, respectively, on its consolidated balance sheets. |
Employee compensation plans
Employee compensation plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee compensation plans | Employee compensation plans The Company maintains various employee compensation plans for the benefit of its employees. Two types of employee compensation are granted under share-based compensation and cash-based compensation plans. Share-based Compensation Plans Oppenheimer Holdings Inc. 2014 Incentive Plan On February 26, 2014, the Company adopted the Oppenheimer Holdings Inc. 2014 Incentive Plan (the "OIP"). Pursuant to the OIP, the Compensation Committee of the Board of Directors of the Company (the "Committee") is permitted to grant options to purchase Class A Stock ("stock options"), Class A Stock awards and restricted Class A Stock (collectively "restricted stock awards") to or for the benefit of employees and non-employee directors of the Company and its subsidiaries as part of their compensation. Stock o ptions are generally granted for a five-year term and generally vest at the rate of 25% of the amount granted on the second anniversary of the grant, 25% on the third anniversary of the grant, 25% on the fourth anniversary of the grant and 25% on the six months before expiration. Restricted stock awards are generally awarded for a three Restricted stock - The Company has granted restricted stock awards pursuant to the OIP. The following table summarizes the status of the Company's non-vested restricted Class A Stock awards under the OIP for the year ended December 31, 2023: Number of Class Weighted Weighted Average Remaining Nonvested at beginning of year 1,690,006 $ 29.42 1.9 years Granted 293,222 45.66 2.6 years Vested (341,579) 25.79 — Forfeited (52,235) 37.98 — Nonvested at end of year 1,589,414 $ 32.92 1.6 years As of December 31, 2023, all outstanding restricted Class A Stock awards were non-vested. The aggregate intrinsic value of restricted Class A Stock awards outstanding as of December 31, 2023 was $65.7 million. During the year ended December 31, 2023, the Company included $13.1 million ($11.5 million in 2022 and $10.5 million in 2021) of compensation expense in its consolidated income statements relating to restricted Class A Stock awards. As of December 31, 2023, there was $21.4 million of total unrecognized compensation cost related to unvested restricted Class A Stock awards. The cost is expected to be recognized over a weighted average period of 1.6 years. As of December 31, 2023, the number of shares of Class A Stock available under the share-based compensation plans, but not yet awarded, was 145,303. On May 8, 2023, holders of the Class B voting common stock of the Company voted to approve increasing the number of shares of Class A Stock available to the 2014 Plan by 1,250,000 shares of Class A Stock. On January 24, 2024, the Company registered these additional shares of Class A Stock to be available under the 2014 Plan. As of January 24, 2024, the number of shares of Class A Stock available under the share-based compensation plans, but not yet awarded, was 1,395,303. On January 25, 2024, the Company awarded a total of 311,140 restricted shares of Class A Stock to current employees pursuant to the OIP. Of these restricted shares, 184,790 shares will cliff vest in three years and 126,350 shares will cliff vest in five years. These awards will be expensed over the applicable three Stock options - The Company has granted stock options pursuant to the OIP. There were 2,447 and 5,233 options outstanding as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, the Company included $8,195 ($15,702 in 2022 and $21,669 in 2021) of compensation expense in its consolidated income statements relating to the expensing of stock options. On February 26, 2024 the OIP expired by its terms. Awards issued prior to the expiration of the OIP survive the termination of the OIP. Authorized but unissued shares under the OIP not subject to awards were cancelled. On March 1, 2024 the Board of Directors of the Company approved the Company’s 2024 Incentive Plan (“2024 Plan”) subject to approval of the 2024 Plan at the Annual Meeting of Stockholders on May 6, 2024. Oppenheimer Holdings Inc. Stock Appreciation Right Plan Under the Oppenheimer Holdings Inc. Stock Appreciation Right Plan, the Company awards stock appreciation rights ("OARs") to certain employees as part of their compensation package based on a formula reflecting gross production and length of service. These awards are granted once per year in January with respect to the prior year's production. The OARs vest five years from grant date and settle in cash at vesting. OARs - The Company has awarded OARs pursuant to the Oppenheimer Holdings Inc. Stock Appreciation Right Plan. The following table summarizes the status of the Company's outstanding OARs awards as of December 31, 2023: Grant Date Number of Strike Price Remaining Fair Value as of December 31, 2023 January 11, 2019 473,956 $ 26.45 12 days $ 14.88 January 10, 2020 484,790 27.54 1 year 14.98 January 11, 2021 583,389 32.16 2 years 13.30 January 7, 2022 617,707 49.57 3 years 7.52 January 6, 2023 514,670 45.33 4 years 12.38 Total OARs Outstanding 2,674,512 Total weighted average values $ 36.87 2.9 years $ 12.37 The fair value as of December 31, 2023 for each of the OARs was estimated using the Black-Scholes model with the following assumptions: Grant Date January 11, 2019 January 10, 2020 January 11, 2021 January 7, 2022 January 6, 2023 Expected term (1) 12 days 1 year 2 years 3 years 4 years Expected volatility factor (2) 17.096 % 33.244 % 34.355 % 33.422 % 40.315 % Risk-free interest rate (3) 1.741 % 4.750 % 4.244 % 4.008 % 3.927 % Quarterly dividends (4) $ 0.6 $ 0.6 $ 0.6 $ 0.6 $ 0.6 (1) The expected term was determined based on the remaining life of the actual awards. (2) The volatility factor was measured using the weighted average of historical daily price changes of the Company's Class A Stock over a historical period commensurate to the expected term of the awards. (3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at December 31, 2023. (4) Quarterly dividends were used to compute the expected annual dividend yield. As of December 31, 2023, 2,674,512 of outstanding OARs were unvested. As of December 31, 2023, the aggregate intrinsic value of OARs outstanding was $19.1 million. In the year ended December 31, 2023, the Company included $3.9 million ($4.4 million in 2022 and $20.6 million in 2021) in compensation expense in its consolidated income statements relating to OARs awards. The liability related to the OARs was $20.6 million as of December 31, 2023. As of December 31, 2023, there was $12.6 million of total unrecognized compensation cost related to unvested OARs. The cost is expected to be recognized over a weighted average period of 2.9 years. On January 5, 2024, 488,700 OARs were awarded to Oppenheimer employees related to fiscal 2023 performance. These OARs will be expensed over 5 years (the vesting period). Cash-based Compensation Plans Defined Contribution Plan The Company, through its subsidiaries, maintains a defined contribution plan covering substantially all full-time U.S. employees. The Oppenheimer & Co. Inc. 401(k) Plan provides that Oppenheimer may make discretionary contributions. Eligible Oppenheimer employees could make voluntary contributions which could not exceed $22,500, $20,500 and $19,500 per annum in 2023, 2022 and 2021, respectively. The Company made contributions to the 401(k) Plan of $4.4 million, $4.3 million and $4.3 million in 2023, 2022 and 2021, respectively. Deferred Compensation Plans The Company maintains an Executive Deferred Compensation Plan ("EDCP") and a Deferred Incentive Plan ("DIP") in order to offer certain qualified high-performing financial advisors a bonus based upon a formula reflecting years of service, production, net commissions and a valuation of their clients' assets. The bonus amounts resulted in deferrals for fiscal 2023 of $10.1 million ($11.1 million in 2022 and $12.8 million in 2021). These deferrals normally vest after five years. The liability is being recognized over the vesting period. The EDCP also includes voluntary deferrals by senior executives that are not subject to vesting. The Company maintains a Company-owned life insurance policy, which is designed to hedge a portion of the EDCP obligation. The EDCP liability is being tracked against the value of a benchmark investment portfolio held for this purpose. Additionally, the Company maintains the Oppenheimer & Co. Inc. Investment Banking and Capital Markets Deferred Compensation Plan ("CMDP") for eligible employees in the Capital Markets business segment. As of December 31, 2023, the Company's liability with respect to the EDCP, DIP and CMDP described below totaled $69.7 million and is included in accrued compensation on the consolidated balance sheet as of December 31, 2023. On October 26, 2023 the Company terminated the DIP. All deferrals made prior to October 26, 2023 survive the termination of the DIP. The Company also maintains a deferred compensation plan on behalf of certain employees who were formerly employed by CIBC World Markets. The Company hedges this deferred compensation obligation with a portfolio of mutual fund investments. As of December 31, 2023, the Company's liability with respect to this plan totaled $19.8 million. An employee is eligible to participate in the CMDP if the employee (i) is an Investment Banking Division employee of Oppenheimer with a title of Associate or above whose previous year’s salary and bonus exceeded $200,000, or (ii) is a professional working in the Oppenheimer Capital Markets Division (but not the Investment Banking Division) who is designated by the Plan Administrator (in its sole discretion) as eligible to participate in the Plan. The CMDP has both mandatory and elective contributions. The amount of compensation subject to mandatory deferral (“Bonus Deferral Credit”) is based on a schedule maintained by the Plan Administrator from time to time. The Bonus Deferral Credit vests ratably over a period of three years and is distributed upon vesting. For the elective portion, a participant is eligible if his or her base salary and bonus exceed $500,000 and he or she may elect to defer up to 50% of the total of his or her base salary and bonus amounts (“Elective Deferral Credit”) for a 5-year or 10-year period. The Elective Deferral Credit is 100% vested at all times. The Company provides a Matching Credit of 10% of the Elective Deferral Credit which vests on last day of the Performance Year (as defined in the CMDP) attributable to the Matching Credit. The Elective Deferral Credit and the Matching Credit are distributed in lump sums in the year following the fifth or tenth anniversary of the last day of the Performance Year (as defined in the CMDP), depending on the participant’s election. For fiscal 2023, the Company’s deferral related to the CMDP totaled $9.9 million which is comprised of Bonus Deferral Credits. Eligibility for Elective Deferral Credits began in 2023 for elections made by December 31, 2021. The total amount expensed in 2023 for the Company's deferred compensation plans was $33.6 million ($5.3 million in 2022 and $18.4 million in 2021). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Commitments The Company had capital commitments of $2.4 million with respect to unfunded obligation in private equity funds sponsored by the Company and $5.8 million of commitments related to additional operating leases that have not yet commenced. As of December 31, 2023, the Company had no collateralized or uncollateralized letters of credit outstanding. Contingencies Many aspects of the Company's business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions and other litigation, creating substantial exposure and periodic expenses. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adverse judgments, settlements, fines, penalties, injunctions or other relief. The investigations include inquiries from the SEC, the Financial Industry Regulatory Authority ("FINRA") and other regulators. The Company accrues for estimated loss contingencies related to legal and regulatory matters within Other Expenses in the consolidated income statement when available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss or possible additional losses or range of additional losses. For certain legal and regulatory proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial, indeterminate or special damages. Counsel may be required to review, analyze and resolve numerous issues, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before the Company can reasonably estimate a loss or range of loss or additional loss for the proceeding. Even after lengthy review and analysis, the Company, in many legal and regulatory proceedings, may not be able to reasonably estimate possible losses or range of losses. For certain other legal and regulatory proceedings, the Company can estimate possible losses, or range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually, or in the aggregate, will have a material adverse effect on the Company's consolidated financial statements as a whole. For legal and regulatory proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of up to $23 million. This estimated aggregate range is based upon currently available information for those legal proceedings in which the Company is involved, where the Company can make an estimate for such losses. For certain cases, the Company does not believe that it can make an estimate. The foregoing aggregate estimate is based on various factors, including the varying stages of the proceedings (including the fact that some are currently in preliminary stages), the numerous yet-unresolved issues in many of the proceedings and the attendant uncertainty of the various potential outcomes of such proceedings. Accordingly, the Company's estimate will change from time to time, and actual losses may be more than the current estimate. On November 18, 2022, Oppenheimer received an information request from the SEC requesting information related to the use of text messaging and similar forms of electronic communications by employees of Oppenheimer and whether those communications were properly retained by Oppenheimer as part of its records preservation requirements relating to the broker-dealer business activities of Oppenheimer. Subsequently, Oppenheimer received a similar information request from the Commodity Futures Trading Commission (“CFTC”). On January 4, 2024, Oppenheimer submitted an Offer of Settlement to the SEC. On February 9, 2024, the SEC issued an order (the “Order”) pursuant to which Oppenheimer will pay a fine in the amount of $12 million and agree to certain undertakings. In addition to the Order Oppenheimer received a waiver of certain statutory disqualifications from the SEC. On February 7, 2024, Oppenheimer submitted an Offer of Settlement to the CFTC pursuant to which Oppenheimer offered to pay a fine of $1 million and agree to certain undertakings. Beginning on or about August 31, 2021, Oppenheimer was named as a respondent in forty-eight arbitrations, many containing multiple claimants, each filed before FINRA, relating to those claimants’ purported investment in Horizon Private Equity, III, LLC (“Horizon”). Horizon is alleged to be a fraudulent scheme involving, among others, a former Oppenheimer employee John Woods. John Woods left Oppenheimer’s employ in 2016 and Oppenheimer never received a complaint or question from any of the investors prior to the SEC bringing a complaint against Woods and his co-conspirators in 2021. Each investor who was an Oppenheimer client, signed a document acknowledging that Horizon was not an approved Oppenheimer product. Over a protracted period of time, Woods made multiple false statements to Oppenheimer, to regulators and to a state court. The claimants are seeking damages based on a number of legal theories, including, without limitation, violations of various state and federal statutes, breach of fiduciary duty, procurement of breach of fiduciary duty, negligent misrepresentation, aiding and abetting fraud, and unjust enrichment. Claimants do not allege Oppenheimer received any of the funds invested in Horizon, but rather that Oppenheimer’s purported failure to properly supervise its employees allowed the alleged scheme to occur and continue. Oppenheimer has settled, or settled in principle or an award has been rendered in forty-one of the Horizon-related arbitrations, with approximately one hundred thirty-eight individual complainants. The aggregate payments for those forty-one arbitrations total approximately $87.7 million. The seven arbitrations still pending claim specific monetary damages and allege losses of approximately $7.9 million in the aggregate. On June 16, 2023, Oppenheimer was served with a complaint in an action entitled John and Cynthia Kearney, John & Tera Sargent, Mike Hall, Individually and as Assignee of 6694 Dawson Blvd, LLC, Thomas and Beverly Crampton, Roy and Shirley Hill, Billy and Debra Lanter, Larry Lawson, Eugene Lyle, Scott Spence, and Dolores Willoughby v. Oppenheimer & Co. Inc., Anne Greene and Gordon Morse, filed in Georgia State Court, Fulton County. Plaintiffs allege that they were all investors in Horizon. However, all of the plaintiffs allege that they invested in Horizon after John Woods left Oppenheimer’s employ in 2016 and virtually all of the plaintiffs were not Oppenheimer customers. Plaintiffs further allege that Oppenheimer, through its inaction and/or misconduct, is responsible for their alleged losses and are seeking unspecified damages sounding in violations of the Georgia RICO statute and negligence per se. On September 5, 2023, Oppenheimer filed a motion to dismiss the complaint, which is pending before the court. That same day, Oppenheimer also filed a motion to transfer the case to the Metro Atlanta Business Case Division, which motion was granted. Oppenheimer believes these claims to be without merit and intends to defend itself vigorously against these claims. Also, on July 17, 2023, Oppenheimer was served with a complaint in an action entitled Mark Del Pico, Elizabeth Del Pico and Surrey Lane Partners GP LLC, as general Partner of Surrey Lane Partners, Ltd. v. Oppenheimer & Co. Inc., and Michael Mooney , filed in Florida State Court, Sarasota County. Plaintiffs allege that they were all investors in Horizon; however, none of the plaintiffs were Oppenheimer customers. All of the plaintiffs allege that they invested in Horizon years after John Woods left Oppenheimer’s employ in 2016. Plaintiffs further allege that Oppenheimer, through its inaction and/or misconduct, is responsible for their alleged losses and are seeking unspecified damages from Oppenheimer sounding in negligence per se, Oppenheimer filed a motion to dismiss the complaint. Rather than respond to Oppenheimer’s motion to dismiss, on January 12, 2024, plaintiffs filed an amended complaint that includes an additional claim of fraud against Oppenheimer. On February 2, 2024 Oppenheimer filed a motion to dismiss the amended complaint which is pending before the Court. Oppenheimer believes these claims to be without merit and intends to defend itself vigorously against these claims. Finally, on August 25, 2023, Oppenheimer was served with a complaint in an action entitled Lisa Wright, Billy Ray Boaz, Sylvia Boyles, Donald and Gina Bryant, Alton Graviette, Gilbert and Felicia Hawks, Michael and Brenda Craig, Barbara and Russell Danley, Carolyn and Ronald Edwards, Pamela Goins, Amy Gordon, Susan Gregory, Timothy Hall, Ronald Jones, Douglas Lineberry, Marcia Martin, Bobby and Jo Simpson, Karen Stephens, Caroline Moser, Rebecca Tapp, Paul Vaughan, Brenda and Varner Vogler, and Peggie Thomas v. Oppenheimer & Co. Inc., Ann Greene and Gordon Morse , filed in Georgia State Court, Fulton County. Plaintiffs allege that they were all investors in Horizon. However, all of the plaintiffs allege that they invested in Horizon after John Woods left Oppenheimer’s employ in 2016 and virtually all of the plaintiffs were not Oppenheimer customers. Plaintiffs further allege that Oppenheimer, through its inaction and/or misconduct, is responsible for their alleged losses and are seeking unspecified damages sounding in violations of the Georgia RICO statute and negligence per se. On September 15, 2023, Oppenheimer filed a motion to transfer the case to the Metro Atlanta Business Case Division, which motion was granted. On October 31, 2023, Oppenheimer filed a motion to dismiss the complaint, which is pending before the court. Oppenheimer believes these claims to be without merit and intends to defend itself vigorously against these claims. On June 30, 2022, the Oppenheimer received a "Wells Notice" from the SEC requesting that Oppenheimer make a written submission to the SEC to explain why Oppenheimer should not be charged with violations of Section 15c2-12 of the Exchange Act, and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 in relation to its sales of municipal notes pursuant to an exemption from continuing disclosure contained in Rule 15c2-12. On September 13, 2022, the SEC filed a complaint against Oppenheimer in the United States District Court for the Southern District of New York (the “Court") alleging that Oppenheimer violated Section 15B(c)(1) of the Exchange Act and Rule 15c2-12 thereunder as well as Municipal Securities Rulemaking Board Rules G-17 and G-27 for not having fully complied with the exemption from the continuing disclosure obligations under Rule 15c2-12. The SEC asked the Court to enter an order enjoining Oppenheimer from violating the above-referenced rules and requiring it to disgorge approximately $1.9 million plus interest and pay a civil penalty. On January 30, 2024, Oppenheimer and the SEC reached an agreement in principle to settle the litigation pursuant to which Oppenheimer would pay a civil penalty of $1.2 million. The settlement is subject to Oppenheimer obtaining a waiver of certain statutory disqualifications. |
Regulatory requirements
Regulatory requirements | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory requirements | Regulatory requirements The Company's U.S. broker dealer subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the "Rule") promulgated under the Exchange Act. Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. As of December 31, 2023, the net capital of Oppenheimer as calculated under the Rule was $453.6 million or 48.86% of Oppenheimer's aggregate debit items. This was $435.0 million in excess of the minimum required net capital at that date. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $100,000 or 6-2/3% of aggregate indebtedness, as defined. As of December 31, 2023, Freedom had net capital of $4.1 million, which was $4.0 million in excess of the $100,000 required to be maintained at that date. As of December 31, 2023, the capital required and held under the FCA's Investment Firms' Prudential Regime ("IFPR") for Oppenheimer Europe Ltd. was as follows: • Common Equity Tier 1 ratio 134.0% (required 56.0%); • Tier 1 Capital ratio 134.0% (required 75.0%); and • Total Capital ratio 182.0% (required 100.0%). Effective January 2022, IFPR changed its minimum capital requirement, which is now sterling 750,000 (previously it was Euro 730,000). Capital ratios are now expressed differently, but are effectively unchanged when comparing performance to required regulatory minimums. As of December 31, 2023, Oppenheimer Europe Ltd. was in compliance with its regulatory requirements. As of December 31, 2023, the regulatory capital of Oppenheimer Investments Asia Limited was $4.0 million, which was $3.6 million in excess of the $384,120 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong. As of December 31, 2023, Oppenheimer Investments Asia Limited was in compliance with its regulatory requirements. |
Goodwill and intangibles
Goodwill and intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangibles | Goodwill and intangibles Goodwill The Company's goodwill of $142.2 million resides in its PCD reporting unit ($137.9 million) and Corporate/Other reporting unit ($4.3 million). The Company performed its annual test for goodwill impairment for the PCD reporting unit as of December 31, 2023 and 2022, which did not result in any impairment charges for either period. At each annual goodwill impairment testing date, the PCD reporting unit had a fair value that was substantially in excess of its carrying value. Goodwill within the Corporate/Other reporting unit relates to the Company’s acquisition of BondWave LLC, which closed on December 29, 2023. Because the valuation of goodwill associated with this transaction was determined on the last business day of 2023, no impairment testing was deemed necessary. Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets are carried at $32.7 million, are not amortized, and are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. Trademarks and trade names recorded as of December 31, 2023 and 2022 have been tested for impairment and it has been determined that no impairment has occurred. At each annual intangible assets impairment testing date, the trademarks and trade names had a fair value that was substantially in excess of their carrying value. Defined-lived intangible assets are comprised of developed technology and customer relationships. These intangible assets carried at $1.6 million are amortized over their estimated lives and are periodically evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable from future undiscounted cash flows. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment information | Segment information The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. The Company's reportable segments are: Private Client — includes commissions and a proportionate amount of fee income earned on assets under management ("AUM"), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment; Asset Management — includes a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer's asset management divisions employ various programs to manage client assets either in individual accounts or in funds, and includes direct expenses associated with this segment; and Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment. The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and primarily include compensation and benefits. The Company also includes activities associated with BondWave, LLC in Corporate/Other. The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the years ended December 31, 2023, 2022 and 2021. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Revenue Private client (1) $ 801,754 $ 675,680 $ 665,060 Asset management (1) 88,433 99,242 104,598 Capital markets 345,897 337,821 625,704 Corporate/Other 12,741 (1,802) (1,327) Total $ 1,248,825 $ 1,110,941 $ 1,394,035 Pre-Tax Income (Loss) Private client (1) $ 194,444 $ 142,250 $ 101,146 Asset management (1) 24,091 35,753 35,874 Capital markets (62,961) (25,696) 204,090 Corporate/Other (108,804) (106,753) (116,469) Total $ 46,770 $ 45,554 $ 224,641 (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees were allocated 10.0% to the Asset Management and 90.0% to the Private Client segments. Revenue, classified by the major geographic areas in which it was earned for the years ended December 31, 2023, 2022 and 2021 was as follows: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Americas $ 1,199,558 $ 1,058,188 $ 1,336,628 Europe/Middle East 46,490 47,080 51,698 Asia 2,777 5,673 5,709 Total $ 1,248,825 $ 1,110,941 $ 1,394,035 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On January 26, 2024, the Company announced a quarterly dividend in the amount of $0.15 per share, payable on February 23, 2024 to holders of Class A Stock and Class B Stock of record on February 9, 2024. |
Summary of significant accoun_2
Summary of significant accounting policies and estimates (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). Intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements. |
Change in Presentation | Effective June 30, 2022, the Company reclassified certain stockholders' equity amounts on the consolidated balance sheet and consolidated statements of changes in stockholders' equity and redeemable non-controlling interests. The reclassification included separately presenting the par value of common stock, and combining previously disclosed share capital and contributed capital amounts in the currently reported additional paid-in capital amount. The reclassification had no impact on previously reported total stockholders’ equity amounts. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. |
Financial Instruments and Fair Value | Financial Instruments Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. Fair Value Measurements Accounting guidance for the fair value measurement of financial assets defines fair value, establishes a framework for measuring fair value, establishes a fair value measurement hierarchy, and requires certain fair value measurement disclosures. Fair value, as defined by the accounting guidance, is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy established by this accounting guidance prioritizes the inputs used in valuation techniques into the following three categories (highest to lowest priority): Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs that are significant to the overall fair value measurement. The Company's financial instruments that are recorded at fair value generally are classified within Level 1 or Level 2 within the fair value hierarchy using quoted market prices or quotes from market makers or broker-dealers. Financial instruments classified within Level 1 are valued based on quoted market prices in active markets and consist of U.S. Treasury and corporate equities. Level 2 financial instruments primarily consist of investment grade and high-yield corporate debt, convertible bonds, U.S. Agency securities, mortgage and asset-backed securities, and municipal obligations. Financial instruments classified as Level 2 are valued based on quoted prices for similar assets and liabilities in active markets and quoted prices for identical or similar assets and liabilities in markets that are not active. Some financial instruments are classified within Level 3 within the fair value hierarchy as observable pricing inputs are not available due to limited market activity for the asset or liability. As of December 31, 2023 and December 31, 2022, the Company had $2.7 million and $31.8 million respectively, of auction rate securities ("ARS") in Level 3 assets. See note 8 for further details. |
Consolidation | The Company consolidates all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("VIEs") where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company reviews factors, including the rights of the equity holders at risk and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the entity is a VIE. Under US GAAP, a general partner will not consolidate a partnership or similar entity under the voting interest model. See note 10 for further details. |
Financing Receivables | The Company's financing receivables include customer margin loans, securities purchased under agreements to resell ("reverse repurchase agreements"), and securities borrowed transactions. The Company uses financing receivables to extend margin loans to customers, meet trade settlement requirements, and facilitate its matched-book arrangements and inventory requirements. The Company's financing receivables are secured by collateral received from clients and counterparties. In many cases, the Company is permitted to sell or re-pledge securities held as collateral. These securities may be used to collateralize repurchase agreements, to enter into securities lending agreements, to cover short positions or to fulfill the obligation of securities fails to deliver. The Company monitors the fair value of the collateral received on a daily basis and may require clients and counterparties to deposit additional collateral or return collateral pledged, when appropriate. Customer receivables, primarily consisting of customer margin loans collateralized by customer-owned securities, are stated net of allowance for credit losses. The Company reviews large customer accounts that do not comply with the Company's margin requirements on a case-by-case basis to determine the likelihood of collection and records an allowance for credit loss following that process. For small customer accounts that do not comply with the Company's margin requirements, the allowance for credit loss is generally recorded as the amount of unsecured or partially secured receivables. The Company also periodically makes loans to financial advisors and other revenue producers as part of its hiring process. These loans are recorded as notes receivable on its consolidated balance sheet. Allowances are established on these loans if the employee is no longer associated with the Company and the loan has not been promptly repaid. |
Legal and Regulatory Reserves | The Company records reserves related to legal and regulatory proceedings in accounts payable and other liabilities. The determination of the amounts of these reserves requires significant judgment on the part of management. In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters where available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. When loss contingencies are not probable or cannot be reasonably estimated, the Company does not establish reserves. When determining whether to record a reserve, management considers many factors including, but not limited to, the amount of the claim; the stage and forum of the proceeding, the sophistication of the claimant, the amount of the loss, if any, in the client's account and the possibility of wrongdoing, if any, on the part of an employee of the Company; the basis and validity of the claim; previous results in similar cases; and applicable legal precedents and case law. Each legal and regulatory proceeding is reviewed with counsel in each accounting period and the reserve is adjusted as deemed appropriate by management. Any change in the reserve amount is recorded in the results of that period. The assumptions of management in determining the estimates of reserves may be incorrect and the actual disposition of a legal or regulatory proceeding could be greater or less than the reserve amount. |
Leases | Right-of-use ("ROU") assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term, excluding non-base rent components such as fixed common area maintenance costs and other fixed costs such as real estate taxes and insurance. The discount rates used in determining the present value of leases are the Company’s incremental borrowing rates, developed based upon each lease’s term. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For operating leases, the ROU assets also include any prepaid lease payments and initial direct costs incurred and are reduced by lease incentives. For these leases, lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned. |
Goodwill | The Company's goodwill resides in its Private Client Division ("PCD") and Corporate/Other operating segment. Goodwill of a reporting unit is subject to at least an annual test for impairment to determine if the estimated fair value of a reporting unit is less than its carrying amount. Goodwill of a reporting unit is required to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Due to the volatility in the financial services sector and equity markets in general, determining whether an impairment of goodwill has occurred is increasingly difficult and requires management to exercise significant judgment. Goodwill within the Corporate/Other operating segment relates to the Company’s acquisition of BondWave LLC, which closed on December 29, 2023. Because the valuation of goodwill associated with this transaction was determined on the last business day of 2023, no impairment testing was deemed necessary. The Company's annual goodwill impairment analysis performed over the goodwill within the PCD reporting unit as of December 31, 2023 applied the same valuation methodologies with consistent inputs as that performed as of December 31, 2022. In estimating the fair value of the PCD reporting unit, the Company uses traditional standard valuation methods, including the market comparable approach and income approach. The market comparable approach is based on comparisons of the subject company to public companies whose stocks are actively traded ("Price Multiples") or to similar companies engaged in an actual merger or acquisition ("Precedent Transactions"). As part of this process, multiples of value relative to financial variables, such as earnings or stockholders' equity, are developed and applied to the appropriate financial variables of the subject company to indicate its value. The income approach involves estimating the present value of the subject company's future cash flows by using projections of the cash flows that the business is expected to generate, and discounting these cash flows at a given rate of return ("Discounted Cash Flow" or "DCF"). Each of these standard valuation methodologies requires the use of management estimates and assumptions. In its Price Multiples valuation analysis, the Company uses various operating metrics of comparable companies, including revenues, after-tax earnings, and EBITDA as well as price-to-book value ratios at a point in time. The Company analyzes prices paid in Precedent Transactions that are comparable to the business conducted in the PCD. The DCF analysis includes the Company's assumptions regarding discount rate, growth rates of the PCD's revenues, expenses, EBITDA, and capital expenditures, adjusted for current economic conditions and expectations. The Company weighs each of the three valuation methods equally in its overall valuation. Given the subjectivity involved in selecting which valuation method to use, the corresponding weightings, and the input variables for use in the analyses, it is possible that a different valuation model and the selection of different input variables could produce a materially different estimate of the fair value of the PCD reporting unit. |
Intangible Assets | Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets carried at $32.7 million, which are not amortized, are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. The fair value of the trademarks and trade names was substantially in excess of their carrying value as of December 31, 2023. Defined-lived intangible assets are comprised of developed technology and customer relationships. These intangible assets carried at $1.6 million are amortized over their estimated lives and are periodically evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable from future undiscounted cash flows. |
Share-Based Compensation Plans | As part of the compensation to employees and directors, the Company uses stock-based compensation, consisting of restricted stock, stock options and stock appreciation rights. In accordance with ASC Topic 718, "Compensation - Stock Compensation," the Company classifies the stock options and restricted stock awards as equity awards, which requires the compensation cost to be recognized in the consolidated income statements over the requisite service period of the award at grant date fair value and adjusted for actual forfeitures. The fair value of restricted stock awards is determined based on the grant date closing price of the Company's Class A non-voting common stock ("Class A Stock") adjusted for the present value of the dividend to be received upon vesting. The fair value of stock options is determined using the Black-Scholes model. Key assumptions used to estimate the fair value include the expected term and the expected volatility of the Company's Class A Stock over the term of the award, the risk-free interest rate over the expected term, and the Company's expected annual dividend yield. The Company classifies stock appreciation rights ("OARs") as liability awards, which requires the fair value to be remeasured at each reporting period until the award vests. The fair value of OARs is also determined using the Black-Scholes model at the end of each reporting period. The compensation cost is adjusted each reporting period for changes in fair value prorated for the portion of the requisite service period rendered. |
Revenue Recognition | Brokerage Customers' securities and commodities transactions are reported on a settlement date basis, which is generally two Principal Transactions Transactions in proprietary securities and related revenue and expenses are recorded on a trade date basis. Securities owned and securities sold but not yet purchased are reported at fair value generally based upon quoted prices. Realized and unrealized changes in fair value are recognized in principal transactions, net in the period in which the change occurs. Investment Banking Fees Advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Retainer fees and engagement fees are recognized ratably over the service period. Underwriting fees are recorded when the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and the related expenses are presented gross on the consolidated income statements. Interest Interest revenue represents interest earned on margin debit balances, securities borrowed transactions, reverse repurchase agreements, fixed income securities, firm investments, and cash and cash equivalents. Interest revenue is recognized in the period earned based upon average or daily asset balances, contractual cash flows, and interest rates. Asset Management Asset management fees are generally recognized over the period the related service is provided based on the account value at the valuation date per the respective asset management agreements. In certain circumstances, OAM is entitled to receive performance (or incentive) fees when the return on assets under management ("AUM") exceeds certain benchmark returns or other performance targets. Performance fees are generally based on investment performance over a 12-month period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Asset management fees and performance fees are included in advisory fees in the consolidated income statements. Assets under management are not included as assets of the Company. Bank Deposit Sweep Income |
Balance Sheet | Cash and Cash Equivalents The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. Receivables from / Payables to Brokers, Dealers and Clearing Organizations Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. The Company receives cash or collateral in an amount generally in excess of the market value of securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis and may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Securities failed to deliver and receive represent the contract value of securities which have not been delivered or received, respectively, by settlement date. Receivables from / Payables to Customers Receivables from and payables to customers include balances arising from customer securities and margin transactions. Receivables from customers are recorded when margin loans are extended to customers and are recorded on a settlement date basis. Payables to customers are recorded when customers deposit cash into their accounts and are recorded on a settlement date basis. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Reverse repurchase agreements and securities sold under agreements to repurchase ("repurchase agreements") are treated as collateralized financing transactions and are recorded at their contractual amounts plus accrued interest. The resulting interest income and expense for these arrangements are included in interest income and interest expense in the consolidated income statements. Additionally, the Company elected the fair value option for repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company presents the reverse repurchase and repurchase transactions on a net-by-counterparty basis when the specific offsetting requirements are satisfied. Notes Receivable Notes receivable primarily represent recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 10 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. Amortization of notes receivable is included in the consolidated income statements in compensation and related expenses. Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation of furniture, fixtures, and equipment is provided on a straight-line basis generally over 3 to 7 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. Drafts Payable Drafts payable represent amounts drawn by the Company against a bank. Bank Call Loans Bank call loans are generally payable on demand and bear interest at various rates, and such loans are collateralized by firm and/or customer's margin securities. Foreign Currency Translations Foreign currency balances have been translated into U.S. dollars as follows: monetary assets and liabilities at exchange rates prevailing at period end; revenue and expenses at average rates for the period; gains or losses resulting from translating foreign currency financial statements, net of related tax effects, are reflected in accumulated other comprehensive income in the consolidated balance sheets. The functional currency of the overseas operations is the local currency in each location except for Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited which have the U.S. dollar as their functional currency. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest and penalties accruing on unrecognized tax benefits in pre-tax income as interest expense and other expense, respectively, in its consolidated income statements. The Company permanently reinvests eligible earnings of its foreign subsidiaries and, accordingly, does not accrue any U.S. income taxes that would arise if such earnings were repatriated. |
Restricted Cash | Restricted cash represents OHAA deposits held in trust. Since these deposits were returned to OHAA’s Class A shareholders as indicated above, there was no restricted cash as of December 31, 2023. |
Financial Instruments - Credi_2
Financial Instruments - Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Financing Receivable Credit Quality Indicators | The following table presents the disaggregation of defaulted notes by year of default as of December 31, 2023: (Expressed in thousands) As of December 31, 2023 2023 $ 2,497 2022 285 2021 1,837 2020 423 2019 314 2018 and prior 1,709 Total $ 7,065 |
Schedule of Financing Receivable, Allowance for Credit Loss | The following table presents activity in the allowance for uncollectibles of defaulted notes for the years ended December 31, 2023 and 2022: (Expressed in thousands) For the Year Ended December 31, 2023 2022 Beginning balance $ 4,327 $ 4,923 Additions and other adjustments (458) (596) Ending balance $ 3,869 $ 4,327 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table presents the weighted average lease term and weighted average discount rate for the Company's operating leases as of December 31, 2023 and December 31, 2022, respectively: As of December 31, 2023 December 31, 2022 Weighted average remaining lease term (in years) 6.35 6.82 Weighted average discount rate 7.72% 6.66% The following table presents operating lease costs recognized for the years ended December 31, 2023 and December 31, 2022, respectively, which are included in occupancy and equipment costs on the consolidated income statements: (Expressed in thousands) For the Year Ended For the Year Ended Operating lease costs: Real estate leases - Right-of-use lease asset amortization $ 25,568 $ 25,128 Real estate leases - Interest expense 13,413 12,996 Equipment leases - Right-of-use lease asset amortization 1,717 1,672 Equipment leases - Interest expense 184 152 |
Schedule of Maturities of Lease Liabilities | The maturities of lease liabilities as of December 31, 2023 are as follows: (Expressed in thousands) As of 2024 $ 43,885 2025 38,759 2026 36,757 2027 34,823 2028 21,660 After 2028 58,081 Total lease payments $ 233,965 Less interest (50,692) Present value of lease liabilities $ 183,273 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the years ended December 31, 2023 and 2022: For the Year Ended December 31, 2023 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 155,039 $ — $ 162,706 $ 23 $ 317,768 Mutual fund income 31,457 — 7 16 31,480 Advisory fees 319,191 96,259 — 229 415,679 Investment banking - capital markets 7,543 — 40,499 — 48,042 Investment banking - advisory — — 69,623 — 69,623 Bank deposit sweep income 172,807 — — — 172,807 Other 15,500 (1) 1,436 166 17,101 Total revenues from contracts with customers 701,537 96,258 274,271 434 1,072,500 Other sources of revenue: Interest 85,105 — 15,196 4,249 104,550 Principal transactions, net 3,400 — 55,572 6,375 65,347 Other 11,712 (7,825) 858 1,683 6,428 Total other sources of revenue 100,217 (7,825) 71,626 12,307 176,325 Total revenue $ 801,754 $ 88,433 $ 345,897 $ 12,741 $ 1,248,825 (Expressed in thousands) For the Year Ended December 31, 2022 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 159,441 $ — $ 179,694 $ 40 $ 339,175 Mutual fund income 31,173 — 8 26 31,207 Advisory fees 326,240 99,224 117 34 425,615 Investment banking - capital markets 9,352 — 33,481 — 42,833 Investment banking - advisory 127 — 84,569 — 84,696 Bank deposit sweep income 104,558 — — — 104,558 Other 16,451 — 2,113 510 19,074 Total revenues from contracts with customers 647,342 99,224 299,982 610 1,047,158 Other sources of revenue: Interest 51,866 — 7,453 1,394 60,713 Principal transactions, net (4,013) — 29,610 (4,566) 21,031 Other (19,515) 18 776 760 (17,961) Total other sources of revenue 28,338 18 37,839 (2,412) 63,783 Total revenue $ 675,680 $ 99,242 $ 337,821 $ (1,802) $ 1,110,941 |
Schedule of Contract with Customer, Asset and Liability | The following presents the Company's receivables and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the consolidated balance sheet: (Expressed in thousands) As of December 31, 2023 December 31, 2022 Receivables: Commission (1) $ 4,554 $ 3,533 Mutual fund income (2) 5,365 4,993 Advisory fees (3) 5,746 5,368 Bank deposit sweep income (4) 5,223 9,057 Investment banking fees (5) 12,847 5,136 Other 6,126 4,686 Total receivables $ 39,861 $ 32,773 Deferred revenue (payables): Investment banking fees (6) $ 1,118 $ 900 Total deferred revenue $ 1,118 $ 900 (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fees earned but not yet received. (6) Retainer fees and fees received from certain advisory transactions where the performance obligations have not |
Receivable from and payable t_2
Receivable from and payable to brokers, dealers and clearing organizations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Schedule of Receivable from and Payable to Brokers, Dealers and Clearing Organizations | (Expressed in thousands) As of December 31, 2023 2022 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 158,612 $ 127,817 Receivable from brokers 65,639 49,125 Securities failed to deliver 29,656 9,099 Clearing organizations and other 30,789 20,036 Total $ 284,696 $ 206,077 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 284,987 $ 320,843 Payable to brokers 447 123 Securities failed to receive 23,809 62,646 Clearing organizations and other (1) 52,647 166,394 Total $ 361,890 $ 550,006 (1) The balances are primarily related to a trade/settlement date adjustment for positions in inventory. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments in Company-Sponsored Funds | The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2023: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 446 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 5,072 2,367 N/A N/A $ 5,518 $ 2,367 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with diversified portfolios focusing on but not limited to technology companies, venture capital and global natural resources. The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2022: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 574 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 8,221 3,018 N/A N/A $ 8,795 $ 3,018 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with diversified portfolios, focusing on but not limited to technology companies, venture capital and global natural resources. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company's assets and liabilities, recorded at fair value on a recurring basis, as of December 31, 2023 and 2022, have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 (Expressed in thousands) Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 34,789 $ — $ — $ 34,789 Securities owned: U.S. Treasury securities 695,346 — — 695,346 U.S. Agency securities — 2 — 2 Corporate debt and other obligations — 5,769 — 5,769 Mortgage and other asset-backed securities — 6,627 — 6,627 Municipal obligations — 35,333 — 35,333 Convertible bonds — 16,735 — 16,735 Corporate equities 27,170 — — 27,170 Money markets 5,400 217 — 5,617 Auction rate securities — — 2,713 2,713 Securities owned, at fair value 727,916 64,683 2,713 795,312 Investments (1) 1,872 16,913 — 18,785 Securities purchased under agreements to resell — 5,842 — 5,842 Derivative contracts: Futures 2 — — 2 TBAs — 11 — 11 Derivative contracts, total $ 2 $ 11 $ — $ 13 Total $ 764,579 $ 87,449 $ 2,713 $ 854,741 Liabilities U.S. Treasury securities $ 14,603 $ — $ — $ 14,603 Corporate debt and other obligations — 1,508 — 1,508 Mortgage and other asset-backed securities — 2 — 2 Convertible bonds — 2,136 — 2,136 Corporate equities 13,427 — — 13,427 Securities sold but not yet purchased, at fair value 28,030 3,646 — 31,676 Derivative contracts: Futures 735 — — 735 TBAs — 2 — 2 Derivative contracts, total 735 2 — 737 Total $ 28,765 $ 3,648 $ — $ 32,413 (1) Included in other assets on the consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 (Expressed in thousands) Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 24,937 $ — $ — $ 24,937 Securities owned: U.S. Treasury securities 362,815 — — 362,815 U.S. Agency securities — 6,012 — 6,012 Sovereign obligations — 9,502 — 9,502 Corporate debt and other obligations — 9,844 — 9,844 Mortgage and other asset-backed securities — 1,882 — 1,882 Municipal obligations — 30,126 — 30,126 Convertible bonds — 21,800 — 21,800 Corporate equities 24,837 — — 24,837 Auction rate securities — — 31,776 31,776 Securities owned, at fair value 387,652 79,166 31,776 498,594 Investments (1) — 7,068 — 7,068 Derivative contracts: TBAs — 1,762 — 1,762 Total $ 412,589 $ 87,996 $ 31,776 $ 532,361 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 25,006 $ — $ — $ 25,006 U.S. Agency securities — 3 — 3 Sovereign obligations — 9,048 — 9,048 Corporate debt and other obligations — 2,905 — 2,905 Convertible bonds — 4,428 — 4,428 Corporate equities 11,378 — — 11,378 Securities sold but not yet purchased, at fair value 36,384 16,384 — 52,768 Derivative contracts: Futures 44 — — 44 TBAs — 1,761 — 1,761 Derivative contracts, total 44 1,761 — 1,805 Total $ 36,428 $ 18,145 $ — $ 54,573 The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2023 and 2022: (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 2023 Beginning Total Realized and Unrealized Gains (2) Purchases Sales and Settlements Transfers Ending Assets Auction rate securities (1) $ 31,776 $ 3,159 $ — $ (32,222) $ — $ 2,713 (1) Represents auction rate securities that failed in the auction rate market. (2) Included in principal transactions in the consolidated income statement. (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 2022 Beginning Total Realized and Unrealized Losses (2) Purchases Sales and Settlements Transfers Ending Assets Auction rate securities (1) $ 31,804 $ (28) $ 1,375 $ (1,375) $ — $ 31,776 (1) Represents auction rate securities that failed in the auction rate market. (2) Included in principal transactions in the consolidated income statement. |
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | Assets and liabilities not measured at fair value as of December 31, 2023 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 28,835 $ 28,835 $ — $ — $ 28,835 Deposits with clearing organization 43,917 43,917 — — 43,917 Receivable from brokers, dealers and clearing organizations: Securities borrowed 158,612 — 158,612 — 158,612 Receivables from brokers 65,639 — 65,639 — 65,639 Securities failed to deliver 29,656 — 29,656 — 29,656 Clearing organizations and Other 30,780 — 30,780 — 30,780 $ 284,687 — $ 284,687 — $ 284,687 Receivable from customers 1,059,892 — 1,059,892 — 1,059,892 Notes receivable, net 62,640 — 62,640 — 62,640 Investments (1) 90,999 — 90,999 — 90,999 (1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $89 million of this balance. This balance is included within other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 9,002 $ 9,002 $ — $ — $ 9,002 Payables to brokers, dealers and clearing organizations: Securities loaned $ 284,987 — $ 284,987 — $ 284,987 Payable to brokers 447 — 447 — 447 Securities failed to receive 23,809 — 23,809 — 23,809 Clearing Organizations and Other 51,912 — 51,912 — 51,912 $ 361,155 — $ 361,155 — $ 361,155 Payables to customers 369,287 — 369,287 — 369,287 Securities sold under agreements to repurchase 640,382 — 640,382 — 640,382 Senior secured notes 113,050 — 109,838 — 109,838 Assets and liabilities not measured at fair value as of December 31, 2022 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 112,433 $ 112,433 $ — $ — $ 112,433 Restricted cash 25,534 25,534 — — 25,534 Deposits with clearing organization 52,754 52,754 — — 52,754 Receivable from brokers, dealers and clearing organizations: Securities borrowed 127,817 — 127,817 — 127,817 Receivables from brokers 49,125 — 49,125 — 49,125 Securities failed to deliver 9,099 — 9,099 — 9,099 Clearing organizations 20,035 — 20,035 — 20,035 206,076 — 206,076 — 206,076 Receivable from customers 1,202,764 — 1,202,764 — 1,202,764 Notes receivable, net 57,495 — 57,495 — 57,495 Investments (1) 79,322 — 79,322 — 79,322 (1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $77 million of this balance. This balance is included within other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Payables to brokers, dealers and clearing organizations: Securities loaned $ 320,843 $ — $ 320,843 $ — $ 320,843 Payable to brokers 123 — 123 — 123 Securities failed to receive 62,646 — 62,646 — 62,646 Other 166,350 — 166,350 — 166,350 549,962 — 549,962 — 549,962 Payables to customers 456,475 — 456,475 — 456,475 Securities sold under agreements to repurchase 161,009 — 161,009 — 161,009 Senior secured notes 114,050 — 113,233 — 113,233 |
Schedule of Notional Amounts and Fair Values of Derivatives by Product | The notional amounts and fair values of the Company's derivatives as of December 31, 2023 and 2022 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2023 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 3,700 $ 11 Commodity contracts Futures 5,000 2 $ 8,700 $ 13 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 6,875,000 $ 735 Other contracts TBAs 3,700 2 $ 6,878,700 $ 737 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2022 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 1,775 $ 1,762 Forward reverse repurchase agreements 15,000 — Other 275 — $ 17,050 $ 1,762 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 1,912,500 $ 44 Other contracts TBAs 1,775 1,761 $ 1,914,275 $ 1,805 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. |
Schedule of Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations | The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the years ended December 31, 2023 and 2022: (Expressed in thousands) The Effect of Derivative Instruments in the Consolidated Income Statement For the Year Ended December 31, 2023 Types Description Location Net Gain Commodity contracts Futures Principal transactions revenue $ 2,842 Other contracts Foreign exchange forward contracts Other revenue 65 TBAs Principal transactions revenue 26 $ 2,933 (Expressed in thousands) The Effect of Derivative Instruments in the Consolidated Income Statement For the Year Ended December 31, 2022 Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 4,652 Other contracts Foreign exchange forward contracts Other revenue (28) TBAs Principal transactions revenue 60 $ 4,684 |
Collateralized transactions (Ta
Collateralized transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Schedule of Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of December 31, 2023: (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 643,410 Securities loaned: Equity securities 284,987 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 928,397 |
Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions | The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of December 31, 2023 and 2022: As of December 31, 2023 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 8,870 $ (3,028) $ 5,842 $ — $ — $ 5,842 Securities borrowed (1) 158,612 — 158,612 (149,946) — 8,666 Total $ 167,482 $ (3,028) $ 164,454 $ (149,946) $ — $ 14,508 (1) Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 643,410 $ (3,028) $ 640,382 $ (632,521) $ — $ 7,861 Securities loaned (2) 284,987 — 284,987 (276,688) — 8,299 Total $ 928,397 $ (3,028) $ 925,369 $ (909,209) $ — $ 16,160 (2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. As of December 31, 2022 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 28,012 $ (28,012) $ — $ — $ — $ — Securities borrowed (1) 127,817 — 127,817 (127,365) — 452 Total $ 155,829 $ (28,012) $ 127,817 $ (127,365) $ — $ 452 (1) Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 189,021 $ (28,012) $ 161,009 $ (157,981) $ — $ 3,028 Securities loaned (2) 320,843 — 320,843 (308,535) — 12,308 Total $ 509,864 $ (28,012) $ 481,852 $ (466,516) $ — $ 15,336 (2) Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. |
Variable interest entities ("_2
Variable interest entities ("VIEs") (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity [Abstract] | |
Schedule of Variable Interest Entities | The following table sets forth the total assets and liabilities of VIE's consolidated on our consolidated balance sheet: (Expressed in thousands) For the Years Ended December 31, 2023 2022 Asset Cash and cash equivalents $ 94 $ 1,694 Restricted Cash — 25,535 Other Assets 387 318 Total Assets $ 481 $ 27,547 Liabilities Other Liabilities 171 828 Total Liabilities $ 171 $ 828 |
Furniture, equipment and leas_2
Furniture, equipment and leasehold improvements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Office Facilities | (Expressed in thousands) For the Years Ended December 31, 2023 2022 Furniture, fixtures and equipment $ 63,473 $ 76,070 Leasehold improvements 63,133 58,423 Total 126,606 134,493 Less accumulated depreciation (82,732) (97,751) Total $ 43,874 $ 36,742 |
Bank call loans (Tables)
Bank call loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank Call Loans [Abstract] | |
Schedule of Bank Call Loans | Details of the bank call loans are as follows: (Expressed in thousands, except percentages) 2023 2022 Year-end balance $ — $ — Weighted interest rate (at end of year) — % — % Maximum balance (at any month-end) 131,900 179,200 Average amount outstanding (during the year) 49,387 79,366 Average interest rate (during the year) 4.20 % 2.18 % |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (Expressed in thousands) Issued Maturity Date December 31, 2023 December 31, 2022 5.50% Senior Secured Notes 10/1/2025 $ 113,050 $ 114,050 Unamortized Debt Issuance Cost (392) (616) $ 112,658 $ 113,434 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Changes in Number of Shares of Class A Stock Outstanding | The following table reflects changes in the number of shares of Class A Stock outstanding for the years indicated: 2023 2022 Class A Stock outstanding, beginning of year 10,868,556 12,447,036 Issued pursuant to share-based compensation plans (note 17) 218,745 105,807 Repurchased and canceled (900,518) (1,684,287) Class A Stock outstanding, end of year 10,186,783 10,868,556 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Years Ended December 31, 2023 2022 2021 Basic weighted average number of shares outstanding 10,736,166 11,666,194 12,642,306 Net dilutive effect of share-based awards, treasury stock method (1) 909,542 941,558 940,522 Diluted weighted average number of shares outstanding 11,645,708 12,607,752 13,582,828 Net income attributable to Oppenheimer Holdings Inc. $ 30,179 $ 32,351 $ 158,964 Earnings per share attributable to Oppenheimer Holdings Inc. Basic $ 2.81 $ 2.77 $ 12.57 Diluted $ 2.59 $ 2.57 $ 11.70 (1) For the year ended December 31, 2023, the diluted net income per share computation did not include the anti-dilutive effect of 115,950 shares of Class A Stock granted under share-based compensation arrangements. For the year ended December 31, 2022, the diluted net income per share computation did not include the anti-dilutive |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Effective Income Tax Rate | Income tax expenses shown in the consolidated income statements are reconciled to amounts of tax that would have been payable from the application of the federal tax rate to pre-tax profit, as follows: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage U.S. federal statutory income tax $ 9,806 21.0 % $ 9,497 21.0 % $ 47,176 21.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 4,150 8.9 % 3,110 6.8 % 13,585 6.0 % Unrecognized tax benefit 45 0.1 % 180 0.4 % 59 — % Valuation allowance 964 2.1 % 1,054 2.3 % 1,121 0.5 % Non-taxable income (964) (2.1) % (1,083) (2.4) % (430) (0.2) % Provision to return adjustments (812) (1.7) % (316) (0.7) % 281 0.1 % Change in state and foreign tax rates (514) (1.1) % (660) (1.4) % 1,384 0.6 % Foreign tax rate differentials (146) (0.3) % (285) (0.6) % (223) (0.1) % Excess tax benefits from share-based awards (1,378) (2.9) % (471) (1.0) % (1,542) (0.7) % Non-deductible executive compensation 1,514 3.2 % 1,605 3.5 % 3,956 1.8 % Other non-deductible expenses 3,833 8.1 % 813 1.6 % 310 0.2 % Total income taxes $ 16,498 35.3 % $ 13,444 29.5 % $ 65,677 29.2 % |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expenses included in the consolidated income statements represent the following: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Current: U.S. federal tax $ 6,967 $ 18,862 $ 47,880 State and local tax 2,137 8,068 18,331 Non-U.S. operations 937 1,129 258 Total Current 10,041 28,059 66,469 Deferred: U.S. federal tax 5,207 (10,420) (1,745) State and local tax 919 (4,538) 790 Non-U.S. operations 331 343 163 Total Deferred 6,457 (14,615) (792) Total $ 16,498 $ 13,444 $ 65,677 |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: (Expressed in thousands) As of December 31, 2023 2022 Deferred tax assets: Deferred compensation $ 27,780 $ 27,161 Deferred rent and lease incentives 8,772 9,877 Net operating losses and credits 12,124 9,593 Receivable reserves 1,259 1,294 Accrued expenses 4,762 13,121 Auction rate securities reserves 62 1,394 Involuntary conversion 1,671 1,704 Other 981 958 Total deferred tax assets 57,411 65,102 Valuation allowance (9,581) (7,036) Deferred tax assets after valuation allowance 47,830 58,066 Deferred tax liabilities: Goodwill 40,984 41,775 Partnership investments 27,181 32,679 Company-owned life insurance 14,180 11,527 Depreciation 1,517 1,617 Other 303 272 Total deferred tax liabilities 84,165 87,870 Deferred tax liabilities, net $ (36,335) $ (29,804) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: (Expressed in thousands) 2023 2022 2021 Balance at beginning of year $ 1,072 $ 343 $ 212 Additions for tax positions of prior years 224 729 343 Settlements with taxing authorities (60) — (212) Balance at end of year $ 1,236 $ 1,072 $ 343 |
Employee compensation plans (Ta
Employee compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock Activity | The following table summarizes the status of the Company's non-vested restricted Class A Stock awards under the OIP for the year ended December 31, 2023: Number of Class Weighted Weighted Average Remaining Nonvested at beginning of year 1,690,006 $ 29.42 1.9 years Granted 293,222 45.66 2.6 years Vested (341,579) 25.79 — Forfeited (52,235) 37.98 — Nonvested at end of year 1,589,414 $ 32.92 1.6 years |
Share-Based Payment Arrangement, Stock Appreciation Right | The following table summarizes the status of the Company's outstanding OARs awards as of December 31, 2023: Grant Date Number of Strike Price Remaining Fair Value as of December 31, 2023 January 11, 2019 473,956 $ 26.45 12 days $ 14.88 January 10, 2020 484,790 27.54 1 year 14.98 January 11, 2021 583,389 32.16 2 years 13.30 January 7, 2022 617,707 49.57 3 years 7.52 January 6, 2023 514,670 45.33 4 years 12.38 Total OARs Outstanding 2,674,512 Total weighted average values $ 36.87 2.9 years $ 12.37 |
Schedule of Share-Based Payment Award, Non-Options Equity Instrument, Valuation Assumptions | The fair value as of December 31, 2023 for each of the OARs was estimated using the Black-Scholes model with the following assumptions: Grant Date January 11, 2019 January 10, 2020 January 11, 2021 January 7, 2022 January 6, 2023 Expected term (1) 12 days 1 year 2 years 3 years 4 years Expected volatility factor (2) 17.096 % 33.244 % 34.355 % 33.422 % 40.315 % Risk-free interest rate (3) 1.741 % 4.750 % 4.244 % 4.008 % 3.927 % Quarterly dividends (4) $ 0.6 $ 0.6 $ 0.6 $ 0.6 $ 0.6 (1) The expected term was determined based on the remaining life of the actual awards. (2) The volatility factor was measured using the weighted average of historical daily price changes of the Company's Class A Stock over a historical period commensurate to the expected term of the awards. (3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at December 31, 2023. (4) Quarterly dividends were used to compute the expected annual dividend yield. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reported Revenue and Profit Before Income Taxes | The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the years ended December 31, 2023, 2022 and 2021. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Revenue Private client (1) $ 801,754 $ 675,680 $ 665,060 Asset management (1) 88,433 99,242 104,598 Capital markets 345,897 337,821 625,704 Corporate/Other 12,741 (1,802) (1,327) Total $ 1,248,825 $ 1,110,941 $ 1,394,035 Pre-Tax Income (Loss) Private client (1) $ 194,444 $ 142,250 $ 101,146 Asset management (1) 24,091 35,753 35,874 Capital markets (62,961) (25,696) 204,090 Corporate/Other (108,804) (106,753) (116,469) Total $ 46,770 $ 45,554 $ 224,641 (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees |
Schedule of Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which it was earned for the years ended December 31, 2023, 2022 and 2021 was as follows: (Expressed in thousands) For the Years Ended December 31, 2023 2022 2021 Americas $ 1,199,558 $ 1,058,188 $ 1,336,628 Europe/Middle East 46,490 47,080 51,698 Asia 2,777 5,673 5,709 Total $ 1,248,825 $ 1,110,941 $ 1,394,035 |
Organization (Details)
Organization (Details) | Dec. 31, 2023 state office |
Organization And Basis Of Presentation [Line Items] | |
Number of states | state | 25 |
Americas | |
Organization And Basis Of Presentation [Line Items] | |
Number of branch offices | office | 90 |
Summary of significant accoun_3
Summary of significant accounting policies and estimates (Details) - USD ($) | 12 Months Ended | |||
Oct. 26, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Securities owned, at fair value | $ 795,312,000 | $ 498,594,000 | ||
Indefinite intangible assets | 32,700,000 | |||
Defined-lived intangible assets | $ 1,600,000 | |||
Cash equivalents maximum maturity period of highly liquid investments | 90 days | |||
Proceeds from Company sponsored Initial Public Offering | $ 0 | 0 | $ 126,500,000 | |
Period after April 29, 2023 | 10 days | |||
Combination period | 18 months | |||
Net income (loss) attributable to non-controlling interests | 93,000 | (241,000) | 0 | |
Restricted cash | 0 | 25,534,000 | $ 127,765,000 | |
Auction rate securities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Securities owned, at fair value | $ 2,713,000 | 31,776,000 | ||
IPO | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Proceeds from Company sponsored Initial Public Offering | $ 126,500,000 | |||
Total funds | 127,800,000 | |||
Investment from sponsor | $ 1,300,000 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of business days for related transactions (in days) | 1 day | |||
Minimum | Furniture, fixtures and equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Furniture, fixtures, and equipment, useful life | 3 years | |||
Minimum | Notes Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Service period | 3 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of business days for related transactions (in days) | 2 days | |||
Maximum | Furniture, fixtures and equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Furniture, fixtures, and equipment, useful life | 7 years | |||
Maximum | Notes Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Service period | 10 years | |||
Securities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of business days for related transactions (in days) | 2 days | |||
Commodities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of business days for related transactions (in days) | 1 day | |||
Level 3 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Securities owned, at fair value | $ 2,713,000 | 31,776,000 | ||
Level 3 | Auction rate securities | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Securities owned, at fair value | $ 2,713,000 | $ 31,776,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 142,162 | $ 137,889 | |
BondWave LLC | |||
Business Acquisition [Line Items] | |||
Percentage of business acquired | 100% | ||
Additional, contingent payments | $ 3,600 | ||
Additional contingent payment period | 18 months | ||
Goodwill | $ 4,300 | ||
Intangibles assets | 2,200 | ||
Cash acquired | $ 625 |
Financial Instruments - Credi_3
Financial Instruments - Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Notes receivable, net | $ 62,640 | $ 57,495 | |
Uncollectible balance reserved (as a percent) | 100% | ||
Uncollectible balance period | 5 years | ||
Uncollected balance of defaulted notes | $ 7,065 | ||
Allowance for credit losses | 3,869 | $ 4,327 | $ 4,923 |
Notes Receivable, Five Years and Older | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Allowance for credit losses | 1,700 | ||
Notes Receivable, Under Five Years | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Allowance for credit losses | $ 2,200 | ||
Minimum | Notes Receivable | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Service period | 3 years | ||
Maximum | Notes Receivable | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Service period | 10 years |
Financial Instruments - Credi_4
Financial Instruments - Credit Losses - Schedule of Disaggregation of Defaulted Notes By Year Of Default (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Credit Loss [Abstract] | |
2023 | $ 2,497 |
2022 | 285 |
2021 | 1,837 |
2020 | 423 |
2019 | 314 |
2018 and prior | 1,709 |
Total | $ 7,065 |
Financial Instruments - Credi_5
Financial Instruments - Credit Losses - Schedule of Activity in Allowance For Uncollectible Defaulted Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 4,327 | $ 4,923 |
Additions and other adjustments | (458) | (596) |
Ending balance | $ 3,869 | $ 4,327 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Dec. 31, 2023 USD ($) office | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 140,554 | $ 142,630 |
Right-of-use lease assets, accumulated amortization | 99,716 | 82,449 |
Lease liabilities | 183,273 | 182,570 |
Lease not yet commenced, amount | 5,800 | $ 40,200 |
Real Estate Leases | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 137,900 | |
Right-of-use lease assets, accumulated amortization | 97,100 | |
Lease liabilities | 180,600 | |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 2,700 | |
Right-of-use lease assets, accumulated amortization | 2,600 | |
Lease liabilities | $ 2,700 | |
Viner Finance Inc. | ||
Lessee, Lease, Description [Line Items] | ||
Ownership percentage | 100% | |
Americas | ||
Lessee, Lease, Description [Line Items] | ||
Number of branch offices | office | 90 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 6 years 4 months 6 days | 6 years 9 months 25 days |
Weighted average discount rate (as a percent) | 7.72% | 6.66% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Real estate leases - Right-of-use lease asset amortization | $ 27,281 | $ 26,804 | $ 26,125 |
Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Real estate leases - Right-of-use lease asset amortization | 25,568 | 25,128 | |
Real estate leases - Interest expense | 13,413 | 12,996 | |
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Real estate leases - Right-of-use lease asset amortization | 1,717 | 1,672 | |
Real estate leases - Interest expense | $ 184 | $ 152 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 43,885 | |
2025 | 38,759 | |
2026 | 36,757 | |
2027 | 34,823 | |
2028 | 21,660 | |
After 2028 | 58,081 | |
Total lease payments | 233,965 | |
Less interest | (50,692) | |
Present value of lease liabilities | $ 183,273 | $ 182,570 |
Revenue from contracts with c_3
Revenue from contracts with customers - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, receivables | $ 39,861,000 | $ 32,773,000 |
Contract assets | 0 | 0 |
Total deferred revenue | 1,118,000 | 900,000 |
Capitalized contract costs | $ 1,900,000 | $ 1,400,000 |
Commission From Equity Securities Transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 2 days | |
Commissions From Corporate Bond Transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 1 day | |
Mutual fund income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 90 days | |
Advisory fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 90 days | |
Investment banking - capital markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 90 days | |
Bank Deposit Sweep Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue settlement period (in days) | 30 days |
Revenue from contracts with c_4
Revenue from contracts with customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | $ 1,072,500 | $ 1,047,158 | |
Interest | 104,550 | 60,713 | $ 36,482 |
Principal transactions, net | 65,347 | 21,031 | 23,984 |
Other | 6,428 | (17,961) | |
Total other sources of revenue | 176,325 | 63,783 | |
Total revenue | 1,248,825 | 1,110,941 | 1,394,035 |
Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 434 | 610 | |
Interest | 4,249 | 1,394 | |
Principal transactions, net | 6,375 | (4,566) | |
Other | 1,683 | 760 | |
Total other sources of revenue | 12,307 | (2,412) | |
Total revenue | 12,741 | (1,802) | (1,327) |
Commissions from sales and trading | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 317,768 | 339,175 | |
Commissions from sales and trading | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 23 | 40 | |
Mutual fund income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 31,480 | 31,207 | |
Mutual fund income | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 16 | 26 | |
Advisory fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 415,679 | 425,615 | |
Advisory fees | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 229 | 34 | |
Investment banking - capital markets | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 48,042 | 42,833 | |
Investment banking - capital markets | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Investment banking - advisory | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 69,623 | 84,696 | |
Investment banking - advisory | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Bank deposit sweep income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 172,807 | 104,558 | |
Bank deposit sweep income | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 17,101 | 19,074 | |
Other | Corporate/Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 166 | 510 | |
Private Client | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 701,537 | 647,342 | |
Interest | 85,105 | 51,866 | |
Principal transactions, net | 3,400 | (4,013) | |
Other | 11,712 | (19,515) | |
Total other sources of revenue | 100,217 | 28,338 | |
Total revenue | 801,754 | 675,680 | 665,060 |
Private Client | Commissions from sales and trading | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 155,039 | 159,441 | |
Private Client | Mutual fund income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 31,457 | 31,173 | |
Private Client | Advisory fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 319,191 | 326,240 | |
Private Client | Investment banking - capital markets | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 7,543 | 9,352 | |
Private Client | Investment banking - advisory | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 127 | |
Private Client | Bank deposit sweep income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 172,807 | 104,558 | |
Private Client | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 15,500 | 16,451 | |
Asset Management | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 96,258 | 99,224 | |
Interest | 0 | 0 | |
Principal transactions, net | 0 | 0 | |
Other | (7,825) | 18 | |
Total other sources of revenue | (7,825) | 18 | |
Total revenue | 88,433 | 99,242 | 104,598 |
Asset Management | Commissions from sales and trading | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Asset Management | Mutual fund income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Asset Management | Advisory fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 96,259 | 99,224 | |
Asset Management | Investment banking - capital markets | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Asset Management | Investment banking - advisory | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Asset Management | Bank deposit sweep income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Asset Management | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | (1) | 0 | |
Capital markets | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 274,271 | 299,982 | |
Interest | 15,196 | 7,453 | |
Principal transactions, net | 55,572 | 29,610 | |
Other | 858 | 776 | |
Total other sources of revenue | 71,626 | 37,839 | |
Total revenue | 345,897 | 337,821 | $ 625,704 |
Capital markets | Commissions from sales and trading | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 162,706 | 179,694 | |
Capital markets | Mutual fund income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 7 | 8 | |
Capital markets | Advisory fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 117 | |
Capital markets | Investment banking - capital markets | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 40,499 | 33,481 | |
Capital markets | Investment banking - advisory | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 69,623 | 84,569 | |
Capital markets | Bank deposit sweep income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | 0 | 0 | |
Capital markets | Other | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues from contracts with customers | $ 1,436 | $ 2,113 |
Revenue from contracts with c_5
Revenue from contracts with customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | $ 39,861 | $ 32,773 |
Total deferred revenue | 1,118 | 900 |
Investment banking fees | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total deferred revenue | 1,118 | 900 |
Commission | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | 4,554 | 3,533 |
Mutual fund income | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | 5,365 | 4,993 |
Advisory fees | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | 5,746 | 5,368 |
Bank deposit sweep income | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | 5,223 | 9,057 |
Investment banking fees | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | 12,847 | 5,136 |
Other | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Total receivables | $ 6,126 | $ 4,686 |
Receivable from and payable t_3
Receivable from and payable to brokers, dealers and clearing organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivable from brokers, dealers and clearing organizations consists of: | ||
Securities borrowed | $ 158,612 | $ 127,817 |
Receivable from brokers | 65,639 | 49,125 |
Securities failed to deliver | 29,656 | 9,099 |
Clearing organizations and other | 30,789 | 20,036 |
Total | 284,696 | 206,077 |
Payable to brokers, dealers and clearing organizations consists of: | ||
Securities loaned | 284,987 | 320,843 |
Payable to brokers | 447 | 123 |
Securities failed to receive | 23,809 | 62,646 |
Clearing organizations and other | 52,647 | 166,394 |
Total | $ 361,890 | $ 550,006 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 795,312 | $ 498,594 |
Auction rate securities valuation adjustment | 200 | |
Investments | $ 18,785 | 7,068 |
Forward or delayed delivery of the underlying instrument with settlement | 180 days | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 64,683 | 79,166 |
Investments | 16,913 | $ 7,068 |
Level 2 | Other Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 7,100 |
Fair value measurements - Inves
Fair value measurements - Investments in Company-Sponsored Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Investment Holdings [Line Items] | ||
Fair Value | $ 5,518 | $ 8,795 |
Unfunded Commitments | 2,367 | 3,018 |
Hedge Funds | ||
Summary of Investment Holdings [Line Items] | ||
Fair Value | 446 | 574 |
Unfunded Commitments | $ 0 | $ 0 |
Hedge Funds | Minimum | ||
Summary of Investment Holdings [Line Items] | ||
Redemption notice period | 30 days | 30 days |
Hedge Funds | Maximum | ||
Summary of Investment Holdings [Line Items] | ||
Redemption notice period | 120 days | 120 days |
Private Equity Funds | ||
Summary of Investment Holdings [Line Items] | ||
Fair Value | $ 5,072 | $ 8,221 |
Unfunded Commitments | $ 2,367 | $ 3,018 |
Fair value measurements - Asset
Fair value measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Deposits with clearing organizations | $ 34,789 | $ 24,937 |
Securities owned | ||
Securities owned, at fair value | 795,312 | 498,594 |
Investments | 18,785 | 7,068 |
Securities purchased under agreements to resell | 5,842 | 0 |
Derivative contracts: | ||
Derivative contracts, total | 13 | |
Total | 854,741 | 532,361 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 31,676 | 52,768 |
Derivative contracts: | ||
Derivative contracts | 737 | 1,805 |
Total | 32,413 | 54,573 |
U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 695,346 | 362,815 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 14,603 | 25,006 |
U.S. Agency securities | ||
Securities owned | ||
Securities owned, at fair value | 2 | 6,012 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 3 | |
Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 9,502 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 9,048 | |
Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 5,769 | 9,844 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 1,508 | 2,905 |
Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 6,627 | 1,882 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2 | |
Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 35,333 | 30,126 |
Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 16,735 | 21,800 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2,136 | 4,428 |
Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 27,170 | 24,837 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 13,427 | 11,378 |
Money markets | ||
Securities owned | ||
Securities owned, at fair value | 5,617 | |
Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 2,713 | 31,776 |
Futures | ||
Derivative contracts: | ||
Derivative contracts, total | 2 | |
Derivative contracts: | ||
Derivative contracts | 735 | 44 |
TBAs | ||
Derivative contracts: | ||
Derivative contracts, total | 11 | 1,762 |
Derivative contracts: | ||
Derivative contracts | 2 | 1,761 |
Level 1 | ||
ASSETS | ||
Deposits with clearing organizations | 34,789 | 24,937 |
Securities owned | ||
Securities owned, at fair value | 727,916 | 387,652 |
Investments | 1,872 | 0 |
Securities purchased under agreements to resell | 0 | |
Derivative contracts: | ||
Derivative contracts, total | 2 | |
Total | 764,579 | 412,589 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 28,030 | 36,384 |
Derivative contracts: | ||
Derivative contracts | 735 | 44 |
Total | 28,765 | 36,428 |
Level 1 | U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 695,346 | 362,815 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 14,603 | 25,006 |
Level 1 | U.S. Agency securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 1 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 1 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 1 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 1 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Level 1 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 1 | Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 27,170 | 24,837 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 13,427 | 11,378 |
Level 1 | Money markets | ||
Securities owned | ||
Securities owned, at fair value | 5,400 | |
Level 1 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Level 1 | Futures | ||
Derivative contracts: | ||
Derivative contracts, total | 2 | |
Derivative contracts: | ||
Derivative contracts | 735 | 44 |
Level 1 | TBAs | ||
Derivative contracts: | ||
Derivative contracts, total | 0 | 0 |
Derivative contracts: | ||
Derivative contracts | 0 | 0 |
Level 2 | ||
ASSETS | ||
Deposits with clearing organizations | 0 | 0 |
Securities owned | ||
Securities owned, at fair value | 64,683 | 79,166 |
Investments | 16,913 | 7,068 |
Securities purchased under agreements to resell | 5,842 | |
Derivative contracts: | ||
Derivative contracts, total | 11 | |
Total | 87,449 | 87,996 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 3,646 | 16,384 |
Derivative contracts: | ||
Derivative contracts | 2 | 1,761 |
Total | 3,648 | 18,145 |
Level 2 | U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 2 | U.S. Agency securities | ||
Securities owned | ||
Securities owned, at fair value | 2 | 6,012 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 3 | |
Level 2 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 9,502 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 9,048 | |
Level 2 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 5,769 | 9,844 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 1,508 | 2,905 |
Level 2 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 6,627 | 1,882 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2 | |
Level 2 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 35,333 | 30,126 |
Level 2 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 16,735 | 21,800 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2,136 | 4,428 |
Level 2 | Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 2 | Money markets | ||
Securities owned | ||
Securities owned, at fair value | 217 | |
Level 2 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Level 2 | Futures | ||
Derivative contracts: | ||
Derivative contracts, total | 0 | |
Derivative contracts: | ||
Derivative contracts | 0 | 0 |
Level 2 | TBAs | ||
Derivative contracts: | ||
Derivative contracts, total | 11 | 1,762 |
Derivative contracts: | ||
Derivative contracts | 2 | 1,761 |
Level 3 | ||
ASSETS | ||
Deposits with clearing organizations | 0 | 0 |
Securities owned | ||
Securities owned, at fair value | 2,713 | 31,776 |
Investments | 0 | 0 |
Securities purchased under agreements to resell | 0 | |
Derivative contracts: | ||
Derivative contracts, total | 0 | |
Total | 2,713 | 31,776 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Derivative contracts: | ||
Derivative contracts | 0 | 0 |
Total | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 3 | U.S. Agency securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 3 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 3 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 3 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 3 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Level 3 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 3 | Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 0 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | 0 |
Level 3 | Money markets | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Level 3 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 2,713 | 31,776 |
Level 3 | Futures | ||
Derivative contracts: | ||
Derivative contracts, total | 0 | |
Derivative contracts: | ||
Derivative contracts | 0 | 0 |
Level 3 | TBAs | ||
Derivative contracts: | ||
Derivative contracts, total | 0 | 0 |
Derivative contracts: | ||
Derivative contracts | $ 0 | $ 0 |
Fair value measurements - Chang
Fair value measurements - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Principal transactions, net | |
Auction rate securities | ||
Assets | ||
Beginning Balance | $ 31,776 | $ 31,804 |
Total Realized and Unrealized Losses | 3,159 | (28) |
Purchases and Issuances | 0 | 1,375 |
Sales and Settlements | (32,222) | (1,375) |
Transfers In / (Out) | 0 | 0 |
Ending Balance | $ 2,713 | $ 31,776 |
Fair value measurements - Ass_2
Fair value measurements - Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 28,835 | $ 112,433 |
Restricted cash | 25,534 | |
Deposits with clearing organization | 43,917 | 52,754 |
Securities borrowed | 158,612 | 127,817 |
Receivables from brokers | 65,639 | 49,125 |
Securities failed to deliver | 29,656 | 9,099 |
Clearing organizations and Other | 30,780 | 20,035 |
Total Receivable from brokers, dealers and clearing organizations | 284,687 | 206,076 |
Receivable from customers | 1,059,892 | 1,202,764 |
Notes receivable, net | 62,640 | 57,495 |
Investments | 90,999 | 79,322 |
Drafts payable | 9,002 | |
Securities loaned | 284,987 | 320,843 |
Payable to brokers | 447 | 123 |
Securities failed to receive | 23,809 | 62,646 |
Clearing Organizations and Other | 51,912 | 166,350 |
Total payables to brokers, dealers and clearing organizations | 361,155 | 549,962 |
Payables to customers | 369,287 | 456,475 |
Securities sold under agreements to repurchase | 640,382 | 161,009 |
Senior secured notes | 109,838 | 113,233 |
Underlying investment | 89,000 | 77,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 28,835 | 112,433 |
Restricted cash | 25,534 | |
Deposits with clearing organization | 43,917 | 52,754 |
Securities borrowed | 0 | 0 |
Receivables from brokers | 0 | 0 |
Securities failed to deliver | 0 | 0 |
Clearing organizations and Other | 0 | 0 |
Total Receivable from brokers, dealers and clearing organizations | 0 | 0 |
Receivable from customers | 0 | 0 |
Notes receivable, net | 0 | 0 |
Investments | 0 | 0 |
Drafts payable | 9,002 | |
Securities loaned | 0 | 0 |
Payable to brokers | 0 | 0 |
Securities failed to receive | 0 | 0 |
Clearing Organizations and Other | 0 | 0 |
Total payables to brokers, dealers and clearing organizations | 0 | 0 |
Payables to customers | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Senior secured notes | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Deposits with clearing organization | 0 | 0 |
Securities borrowed | 158,612 | 127,817 |
Receivables from brokers | 65,639 | 49,125 |
Securities failed to deliver | 29,656 | 9,099 |
Clearing organizations and Other | 30,780 | 20,035 |
Total Receivable from brokers, dealers and clearing organizations | 284,687 | 206,076 |
Receivable from customers | 1,059,892 | 1,202,764 |
Notes receivable, net | 62,640 | 57,495 |
Investments | 90,999 | 79,322 |
Drafts payable | 0 | |
Securities loaned | 284,987 | 320,843 |
Payable to brokers | 447 | 123 |
Securities failed to receive | 23,809 | 62,646 |
Clearing Organizations and Other | 51,912 | 166,350 |
Total payables to brokers, dealers and clearing organizations | 361,155 | 549,962 |
Payables to customers | 369,287 | 456,475 |
Securities sold under agreements to repurchase | 640,382 | 161,009 |
Senior secured notes | 109,838 | 113,233 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Deposits with clearing organization | 0 | 0 |
Securities borrowed | 0 | 0 |
Receivables from brokers | 0 | 0 |
Securities failed to deliver | 0 | 0 |
Clearing organizations and Other | 0 | 0 |
Total Receivable from brokers, dealers and clearing organizations | 0 | 0 |
Receivable from customers | 0 | 0 |
Notes receivable, net | 0 | 0 |
Investments | 0 | 0 |
Drafts payable | 0 | |
Securities loaned | 0 | 0 |
Payable to brokers | 0 | 0 |
Securities failed to receive | 0 | 0 |
Clearing Organizations and Other | 0 | 0 |
Total payables to brokers, dealers and clearing organizations | 0 | 0 |
Payables to customers | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Senior secured notes | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 28,835 | 112,433 |
Restricted cash | 25,534 | |
Deposits with clearing organization | 43,917 | 52,754 |
Securities borrowed | 158,612 | 127,817 |
Receivables from brokers | 65,639 | 49,125 |
Securities failed to deliver | 29,656 | 9,099 |
Clearing organizations and Other | 30,780 | 20,035 |
Total Receivable from brokers, dealers and clearing organizations | 284,687 | 206,076 |
Receivable from customers | 1,059,892 | 1,202,764 |
Notes receivable, net | 62,640 | 57,495 |
Investments | 90,999 | 79,322 |
Drafts payable | 9,002 | |
Securities loaned | 284,987 | 320,843 |
Payable to brokers | 447 | 123 |
Securities failed to receive | 23,809 | 62,646 |
Clearing Organizations and Other | 51,912 | 166,350 |
Total payables to brokers, dealers and clearing organizations | 361,155 | 549,962 |
Payables to customers | 369,287 | 456,475 |
Securities sold under agreements to repurchase | 640,382 | 161,009 |
Senior secured notes | $ 113,050 | $ 114,050 |
Fair value measurements - Notio
Fair value measurements - Notional Amounts and Fair Values of Derivatives by Product (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 13 | |
Derivative liabilities, fair value | $ 737 | $ 1,805 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other liabilities | Accounts payable and other liabilities |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
TBAs | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 11 | $ 1,762 |
Derivative liabilities, fair value | 2 | 1,761 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 2 | |
Derivative liabilities, fair value | 735 | 44 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional | 8,700 | 17,050 |
Derivative asset, fair value | 13 | 1,762 |
Derivative liabilities, fair value | 737 | 1,805 |
Derivative liability, notional | 6,878,700 | 1,914,275 |
Not Designated as Hedging Instrument | Other contracts | TBAs | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional | 3,700 | 1,775 |
Derivative asset, fair value | 11 | 1,762 |
Derivative liabilities, fair value | 2 | 1,761 |
Derivative liability, notional | 3,700 | 1,775 |
Not Designated as Hedging Instrument | Other contracts | Forward reverse repurchase agreements | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional | 15,000 | |
Derivative asset, fair value | 0 | |
Not Designated as Hedging Instrument | Other contracts | Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional | 275 | |
Derivative asset, fair value | 0 | |
Not Designated as Hedging Instrument | Commodity contracts | Futures | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional | 5,000 | |
Derivative asset, fair value | 2 | |
Derivative liabilities, fair value | 735 | 44 |
Derivative liability, notional | $ 6,875,000 | $ 1,912,500 |
Fair value measurements - Fair
Fair value measurements - Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income (pre-tax) Gain (Loss) | $ 2,933 | $ 4,684 |
Commodity contracts | Principal transactions revenue | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income (pre-tax) Gain (Loss) | 2,842 | 4,652 |
Other contracts | Principal transactions revenue | TBAs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income (pre-tax) Gain (Loss) | 26 | 60 |
Other contracts | Other revenue | Foreign exchange forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income (pre-tax) Gain (Loss) | $ 65 | $ (28) |
Collateralized transactions - N
Collateralized transactions - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) dealer | Dec. 31, 2022 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Bank call loans | $ 0 | $ 0 |
Customer securities under customer margin loans that are available to be pledged | 1,600,000,000 | |
Re-pledged amounts under securities loans agreements | 211,300,000 | |
Customer securities pledged directly with the Options Clearing Corporation to secure obligations | 129,200,000 | |
Letters of credit outstanding, | 0 | |
Amount pledged | $ 689,381,000 | 175,724,000 |
Number of broker-dealers | dealer | 3 | |
Receivable from brokers and clearing organizations | $ 107,600,000 | |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions (in days) | 1 day | |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions (in days) | 2 days | |
Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of securities received as collateral | $ 151,900,000 | 124,100,000 |
Equity Securities | Reverse Repurchase Agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of collateral | 8,800,000 | 28,000,000 |
Equity Securities | Securities Borrowed Transactions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of securities received as collateral, sold and re-pledged under securities loaned | $ 61,500,000 | 39,400,000 |
Equity Securities | Repurchase Agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of collateral | $ 28,000,000 |
Collateralized transactions - S
Collateralized transactions - Schedule of Disaggregation of Gross Obligations by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
U.S. Government and Agency securities | $ 189,021 | |
Equity securities | $ 320,843 | |
Overnight and Open | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
U.S. Government and Agency securities | $ 643,410 | |
Equity securities | 284,987 | |
Gross amount of recognized liabilities for repurchase agreements and securities loaned | $ 928,397 |
Collateralized transactions -_2
Collateralized transactions - Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reverse repurchase agreements | ||
Gross Amounts of Recognized Assets | $ 8,870 | $ 28,012 |
Gross Amounts Offset on the Balance Sheet | (3,028) | (28,012) |
Net Amounts of Assets Presented on the Balance Sheet | 5,842 | 0 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 5,842 | 0 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | 158,612 | 127,817 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Balance Sheet | 158,612 | 127,817 |
Financial Instruments | (149,946) | (127,365) |
Cash Collateral Received | 0 | 0 |
Net Amount | 8,666 | 452 |
Total | ||
Gross Amounts of Recognized Assets | 167,482 | 155,829 |
Gross Amounts Offset on the Balance Sheet | (3,028) | (28,012) |
Net Amounts of Assets Presented on the Balance Sheet | 164,454 | 127,817 |
Financial Instruments | (149,946) | (127,365) |
Cash Collateral Received | 0 | 0 |
Net Amount | 14,508 | 452 |
Repurchase agreements | ||
U.S. Government and Agency securities | 189,021 | |
Gross Amounts Offset on the Balance Sheet | (3,028) | (28,012) |
Net Amounts of Liabilities Presented on the Balance Sheet | 640,382 | 161,009 |
Financial Instruments | (632,521) | (157,981) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 7,861 | 3,028 |
Securities loaned | ||
Equity securities | 320,843 | |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Balance Sheet | 284,987 | 320,843 |
Financial Instruments | (276,688) | (308,535) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 8,299 | 12,308 |
Total | ||
Gross Amounts of Recognized Liabilities | 928,397 | 509,864 |
Gross Amounts Offset on the Balance Sheet | (3,028) | (28,012) |
Net Amounts of Liabilities Presented on the Balance Sheet | 925,369 | 481,852 |
Financial Instruments | (909,209) | (466,516) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 16,160 | $ 15,336 |
Variable interest entities ("_3
Variable interest entities ("VIEs") (Details) | Dec. 31, 2023 USD ($) company | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Variable Interest Entity [Line Items] | |||
Number of special purpose acquisition companies | company | 2 | ||
Cash and cash equivalents | $ 28,835,000 | $ 112,433,000 | $ 213,759,000 |
Restricted cash | 0 | 25,534,000 | $ 127,765,000 |
Other assets | 190,764,000 | 184,443,000 | |
Total assets | 2,874,816,000 | 2,714,392,000 | |
Total liabilities | 2,085,577,000 | 1,893,971,000 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 94,000 | 1,694,000 | |
Restricted cash | 0 | 25,535,000 | |
Other assets | 387,000 | 318,000 | |
Total assets | 481,000 | 27,547,000 | |
Other Liabilities | 171,000 | 828,000 | |
Total liabilities | $ 171,000 | $ 828,000 |
Furniture, equipment and leas_3
Furniture, equipment and leasehold improvements - Summary of Office Facilities Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Office facilities, gross | $ 126,606 | $ 134,493 |
Less accumulated depreciation | (82,732) | (97,751) |
Total | 43,874 | 36,742 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Office facilities, gross | 63,473 | 76,070 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Office facilities, gross | $ 63,133 | $ 58,423 |
Furniture, equipment and leas_4
Furniture, equipment and leasehold improvements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 9,924 | $ 7,605 | $ 7,994 |
Bank call loans - Schedule of B
Bank call loans - Schedule of Bank Call Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Bank Call Loans [Abstract] | ||
Year-end balance | $ 0 | $ 0 |
Weighted interest rate (at end of year) (as a percent) | 0% | 0% |
Maximum balance (at any month-end) | $ 131,900,000 | $ 179,200,000 |
Average amount outstanding (during the year) | $ 49,387,000 | $ 79,366,000 |
Average interest rate (during the year) (as a percent) | 4.20% | 2.18% |
Bank call loans - Narrative (De
Bank call loans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Bank Call Loans [Abstract] | |||
Interest expense on bank call loans | $ 2.9 | $ 1.8 | $ 0.7 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 22, 2020 |
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Cost | $ (392) | $ (616) | |
Total long-term debt, net | 112,658 | 113,434 | |
5.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | $ 113,050 | $ 114,050 | |
5.50% Senior Secured Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.50% |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Nov. 23, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Sep. 28, 2020 | Sep. 22, 2020 | |
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 3,100,000 | ||||||
Debt issuance cost, amount paid to subsidiary | 1,900,000 | ||||||
Debt issuance costs capitalized | 1,200,000 | ||||||
Cash paid during the year for interest | 68,399,000 | $ 22,810,000 | $ 10,089,000 | ||||
5.50% Senior Secured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt gross | 113,050,000 | 114,050,000 | |||||
Debt instrument, repurchase amount | 10,950,000 | ||||||
Interest expense, debt | 6,200,000 | 6,800,000 | |||||
Cash paid during the year for interest | 6,200,000 | $ 6,700,000 | |||||
5.50% Senior Secured Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 5.50% | ||||||
Aggregate principal amount of debt issued | $ 125,000,000 | ||||||
Issue price (as a percent) | 100% | ||||||
Redemption price (as a percent) | 99.80% | ||||||
Debt instrument, repurchase amount | $ 1,000,000 | ||||||
Notes outstanding | $ 113,050,000 | ||||||
6.75% Senior Secured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt gross | $ 150,000,000 | ||||||
Long term debt held in treasury | 1,400,000 | ||||||
Long term debt outstanding, net of amount held in treasury | 148,600,000 | ||||||
6.75% Senior Secured Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 6.75% | ||||||
Long-term debt gross | $ 150,000,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||
Jul. 06, 2023 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 01, 2024 | May 31, 2023 | Dec. 13, 2022 | Jul. 29, 2022 | May 24, 2022 | Feb. 28, 2022 | ||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, authorized (in shares) | 50,000,000 | |||||||||||
Preferred stock, par value (in USD per share) | $ 0.001 | |||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||||||||
Preferred stock, issued (in shares) | 0 | |||||||||||
Payments for repurchase of common stock | $ 35,124 | $ 60,636 | $ 7,737 | |||||||||
Dividends paid per share (in dollars per share) | $ 1 | $ 0.60 | $ 0.60 | $ 1.54 | [1] | |||||||
Cash dividends paid | $ 19,400 | $ 6,500 | $ 7,000 | |||||||||
Class A Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||
Common stock, outstanding (in shares) | 12,447,036 | 10,186,783 | 10,868,556 | 12,447,036 | 10,867,660 | 11,251,930 | 11,863,559 | 12,322,073 | ||||
Common stock, issued (in shares) | 10,186,783 | 10,868,556 | ||||||||||
Entity Common Stock, Shares Outstanding | 10,357,376 | |||||||||||
Class A Stock | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, issued (in shares) | 10,357,376 | |||||||||||
Class A Stock | New Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase of class A common stock (in shares) | 543,000 | 536,500 | 550,000 | 518,000 | ||||||||
Stock repurchased (as a percent) | 5% | 4.80% | 4.60% | 4.20% | ||||||||
Shares remaining available to be purchased (in shares) | 223,699 | 687,034 | 687,034 | 540,778 | 621,893 | 530,407 | ||||||
Stock repurchased and canceled (in shares) | 463,335 | 1,684,287 | ||||||||||
Stock repurchased and canceled | $ 17,600 | $ 60,600 | ||||||||||
Stock repurchased and canceled during period (in dollars per share) | $ 38.07 | $ 36 | ||||||||||
Class A Stock | New Program | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase of class A common stock (in shares) | 442,711 | |||||||||||
Stock repurchased (as a percent) | 5% | |||||||||||
Shares remaining available to be purchased (in shares) | 666,410 | |||||||||||
Class A Stock | Previous Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares remaining available to be purchased (in shares) | 144,034 | 4,278 | 71,893 | 12,407 | ||||||||
Class A Stock | Previous Program | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares remaining available to be purchased (in shares) | 223,699 | |||||||||||
Class A Stock | Modified Dutch Auction Tender Offer | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, outstanding (in shares) | 10,447,392 | |||||||||||
Stock repurchased and canceled (in shares) | 437,183 | |||||||||||
Authorized amount | $ 30,000 | |||||||||||
Stock repurchase program, price (in dollars per share) | $ 40 | |||||||||||
Payments for repurchase of common stock | $ 17,490 | |||||||||||
Class A Stock | Modified Dutch Auction Tender Offer | Minimum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, price (in dollars per share) | $ 34 | |||||||||||
Class A Stock | Modified Dutch Auction Tender Offer | Maximum | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, price (in dollars per share) | $ 40 | |||||||||||
Class B Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 99,665 | 99,665 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||
Common stock, outstanding (in shares) | 99,665 | 99,665 | ||||||||||
Common stock, issued (in shares) | 99,665 | 99,665 | ||||||||||
Entity Common Stock, Shares Outstanding | 99,665 | |||||||||||
[1] (1) Certain prior period reported amounts were reclassified to conform to the current period presentation, See Note 2. |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Number of Shares of Class A Stock Outstanding (Details) - Class A Stock - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes In Number Of Common Stock [Abstract] | ||
Class A Stock outstanding, beginning of year | 10,868,556 | 12,447,036 |
Issued pursuant to shared-based compensation plans | 218,745 | 105,807 |
Repurchased and canceled | (900,518) | (1,684,287) |
Class A Stock outstanding, end of year | 10,186,783 | 10,868,556 |
Earnings per share - Schedule o
Earnings per share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||
Basic weighted average number of shares outstanding | 10,736,166 | 11,666,194 | 12,642,306 |
Net dilutive effect of share-based awards, treasury stock method (in shares) | 909,542 | 941,558 | 940,522 |
Diluted weighted average number of shares outstanding | 11,645,708 | 12,607,752 | 13,582,828 |
Net income attributable to Oppenheimer Holdings Inc. | $ 30,179 | $ 32,351 | $ 158,964 |
Basic (in dollars per share) | $ 2.81 | $ 2.77 | $ 12.57 |
Diluted (in dollars per share) | $ 2.59 | $ 2.57 | $ 11.70 |
Class A Stock | |||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||
Number of anti-dilutive stock options granted | 115,950 | 4,100 |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amount | |||
U.S. federal statutory income tax | $ 9,806 | $ 9,497 | $ 47,176 |
U.S. state and local income taxes, net of U.S. federal income tax benefits | 4,150 | 3,110 | 13,585 |
Unrecognized tax benefit | 45 | 180 | 59 |
Valuation allowance | 964 | 1,054 | 1,121 |
Non-taxable income | (964) | (1,083) | (430) |
Provision to return adjustments | (812) | (316) | 281 |
Change in state and foreign tax rates | (514) | (660) | 1,384 |
Foreign tax rate differentials | (146) | (285) | (223) |
Excess tax benefits from share-based awards | (1,378) | (471) | (1,542) |
Non-deductible executive compensation | 1,514 | 1,605 | 3,956 |
Other non-deductible expenses | 3,833 | 813 | 310 |
Total income taxes | $ 16,498 | $ 13,444 | $ 65,677 |
Percentage | |||
U.S. federal statutory income tax rate (as a percent) | 21% | 21% | 21% |
U.S. state and local income taxes, net of U.S. federal income tax benefits (as a percent) | 8.90% | 6.80% | 6% |
Unrecognized tax benefits (as a percent) | 0.10% | 0.40% | 0% |
Valuation allowance (as a percent) | 2.10% | 2.30% | 0.50% |
Non-taxable income (as a percent) | (2.10%) | (2.40%) | (0.20%) |
Provision to return adjustments (as a percent) | (1.70%) | (0.70%) | 0.10% |
Change in state and foreign tax rates (as a percent) | (1.10%) | (1.40%) | 0.60% |
Foreign tax rate differentials (as a percent) | (0.30%) | (0.60%) | (0.10%) |
Excess tax benefits from share-based awards (as a percent) | (2.90%) | (1.00%) | (0.70%) |
Non-Deductible Executive Compensation (as a percent) | 3.20% | 3.50% | 1.80% |
Other non-deductible expenses (as a percent) | 8.10% | 1.60% | 0.20% |
Total income tax expense (as a percent) | 35.30% | 29.50% | 29.20% |
Income taxes - Schedule of Curr
Income taxes - Schedule of Current and Deferred Income Tax (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
U.S. federal tax | $ 6,967 | $ 18,862 | $ 47,880 |
State and local tax | 2,137 | 8,068 | 18,331 |
Non-U.S. operations | 937 | 1,129 | 258 |
Total Current | 10,041 | 28,059 | 66,469 |
Deferred: | |||
U.S. federal tax | 5,207 | (10,420) | (1,745) |
State and local tax | 919 | (4,538) | 790 |
Non-U.S. operations | 331 | 343 | 163 |
Total Deferred | 6,457 | (14,615) | (792) |
Total income taxes | $ 16,498 | $ 13,444 | $ 65,677 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Taxes [Line Items] | ||||
Income (loss) before income taxes for foreign operations | $ 4,800 | $ 7,700 | $ 1,200 | |
Effective income tax (as a percent) | 35.30% | 29.50% | 29.20% | |
Net change in total valuation allowance | $ 3,400 | |||
Unrecognized tax benefits | 1,236 | $ 1,072 | $ 343 | $ 212 |
Additions for tax positions of prior years | 224 | 729 | 343 | |
Settlements with taxing authorities | (60) | 0 | (212) | |
Unrecognized tax benefit that would impact tax rate | 977 | 847 | ||
Unrecognized tax benefits, penalties and interest tax expense | 107 | 173 | $ 164 | |
Income tax-related interest payable | 322 | $ 214 | ||
Oppenheimer Israel (OPCO) Ltd. | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | 2,000 | |||
Oppenheimer Europe Ltd | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 8,600 |
Income taxes - Schedule of Sign
Income taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Deferred compensation | $ 27,780 | $ 27,161 |
Deferred rent and lease incentives | 8,772 | 9,877 |
Net operating losses and credits | 12,124 | 9,593 |
Receivable reserves | 1,259 | 1,294 |
Accrued expenses | 4,762 | 13,121 |
Auction rate securities reserves | 62 | 1,394 |
Involuntary conversion | 1,671 | 1,704 |
Other | 981 | 958 |
Total deferred tax assets | 57,411 | 65,102 |
Valuation allowance | (9,581) | (7,036) |
Deferred tax assets after valuation allowance | 47,830 | 58,066 |
Deferred tax liabilities: | ||
Goodwill | 40,984 | 41,775 |
Partnership investments | 27,181 | 32,679 |
Company-owned life insurance | 14,180 | 11,527 |
Depreciation | 1,517 | 1,617 |
Other | 303 | 272 |
Total deferred tax liabilities | 84,165 | 87,870 |
Total deferred tax liabilities | $ (36,335) | $ (29,804) |
Income taxes - Schedule of Unre
Income taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 1,072 | $ 343 | $ 212 |
Additions for tax positions of prior years | 224 | 729 | 343 |
Settlements with taxing authorities | (60) | 0 | (212) |
Ending Balance | $ 1,236 | $ 1,072 | $ 343 |
Employee compensation plans - N
Employee compensation plans - Narrative (Details) | 12 Months Ended | |||||||
Jan. 25, 2024 shares | Jan. 05, 2024 shares | Dec. 15, 2021 USD ($) | Dec. 31, 2023 USD ($) plan shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Jan. 24, 2024 shares | May 08, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of employee compensation plans | plan | 2 | |||||||
Stock options outstanding (in shares) | shares | 2,447 | 5,233 | ||||||
Maximum annual contribution under Defined Contribution Plan | $ 22,500 | $ 20,500 | $ 19,500 | |||||
Employer contribution to Defined Contribution Plan | 4,400,000 | 4,300,000 | 4,300,000 | |||||
Deferred bonus amounts | $ 9,900,000 | |||||||
Minimum bonus and salary amount | $ 200,000 | |||||||
Vesting period | 3 years | |||||||
Bonus deferral credit, minimum salary and bonus amount | $ 500,000 | |||||||
Deferral of salary and bonus (as a percent) | 50% | |||||||
Elective deferral credit period one | 5 years | |||||||
Elective deferral credit period two | 10 years | |||||||
Elective deferral credit, amount vested (as a percent) | 100% | |||||||
Matching credit (as a percent) | 10% | |||||||
Deferred compensation plans cost | $ 33,600,000 | 5,300,000 | 18,400,000 | |||||
Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available under the share-based compensation plans (in shares) | shares | 145,303 | |||||||
Number of shares authorized (in shares) | shares | 1,250,000 | |||||||
Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available under the share-based compensation plans (in shares) | shares | 1,395,303 | |||||||
Restricted Stock | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of non-option awards | $ 65,700,000 | |||||||
Compensation expense relating to the share-based awards | 13,100,000 | $ 11,500,000 | 10,500,000 | |||||
Unrecognized compensation cost related to unvested share-based compensation | $ 21,400,000 | |||||||
Weighted Average Remaining Contractual Life | 1 year 7 months 6 days | 1 year 10 months 24 days | ||||||
Non-option awards granted (in shares) | shares | 293,222 | |||||||
Vested (in shares) | shares | 341,579 | |||||||
Non-option equity instruments, unvested (in shares) | shares | 1,589,414 | 1,690,006 | ||||||
Restricted Stock | Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Non-option awards granted (in shares) | shares | 311,140 | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense relating to the share-based awards | $ 8,195,000 | $ 15,702,000 | 21,669,000 | |||||
Stock Appreciation Rights (SARs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Aggregate intrinsic value of non-option awards | $ 19,100,000 | |||||||
Compensation expense relating to the share-based awards | $ 3,900,000 | 4,400,000 | 20,600,000 | |||||
Weighted Average Remaining Contractual Life | 2 years 10 months 24 days | |||||||
Non-option equity instruments, unvested (in shares) | shares | 2,674,512 | |||||||
Liability related to the non-option equity awards | $ 20,600,000 | |||||||
Total unrecognized compensation cost | $ 12,600,000 | |||||||
Stock Appreciation Rights (SARs) | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Non-option awards granted (in shares) | shares | 488,700 | |||||||
Minimum | Restricted Stock | Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Maximum | Restricted Stock | Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Third Anniversary | Restricted Stock | Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-option awards granted (in shares) | shares | 184,790 | |||||||
Fifth Anniversary | Restricted Stock | Class A Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested (in shares) | shares | 126,350 | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected term | 5 years | |||||||
Expiration period | 6 months | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Minimum | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Maximum | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Second Anniversary | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage under share based payment | 25% | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Third Anniversary | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage under share based payment | 25% | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Fourth Anniversary | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage under share based payment | 25% | |||||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) | Six Months Before Expiration | Class A Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage under share based payment | 25% | |||||||
Executive Deferred Compensation Plan and Deferred Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred bonus amounts | $ 10,100,000 | $ 11,100,000 | $ 12,800,000 | |||||
Vesting period of deferred bonus | 5 years | |||||||
Executive Deferred Compensation Plan, Deferred Incentive Plan And Capital Markets Deferred Compensation Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Company's deferred compensation liability | $ 69,700,000 | |||||||
CIBC Deferred Compensation Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Company's deferred compensation liability | $ 19,800,000 |
Employee compensation plans - S
Employee compensation plans - Schedule of Restricted Stock Activity (Details) - Class A Stock - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Class A Shares Subject to Restricted Stock Awards | ||
Non-vested beginning of year (in shares) | 1,690,006 | |
Granted (in shares) | 293,222 | |
Vested (in shares) | (341,579) | |
Forfeited (in shares) | (52,235) | |
Non-vested end of year (in shares) | 1,589,414 | 1,690,006 |
Weighted Average Fair Value Per Share | ||
Non-vested beginning of year (in dollars per share) | $ 29.42 | |
Granted (in dollars per share) | 45.66 | |
Vested (in dollars per share) | 25.79 | |
Forfeited (in dollars per share) | 37.98 | |
Non-vested end of year (in dollars per share) | $ 32.92 | $ 29.42 |
Weighted Average Remaining Contractual Life | 1 year 7 months 6 days | 1 year 10 months 24 days |
Granted, Weighted Average Remaining Contractual Life | 2 years 7 months 6 days |
Employee compensation plans -_2
Employee compensation plans - Schedule of Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 2,674,512 |
Strike price (in dollars per share) | $ 36.87 |
Weighted Average Remaining Contractual Life | 2 years 10 months 24 days |
Fair value (in dollars per share) | $ 12.37 |
January 11, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 473,956 |
Strike price (in dollars per share) | $ 26.45 |
Weighted Average Remaining Contractual Life | 12 days |
Fair value (in dollars per share) | $ 14.88 |
January 10, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 484,790 |
Strike price (in dollars per share) | $ 27.54 |
Weighted Average Remaining Contractual Life | 1 year |
Fair value (in dollars per share) | $ 14.98 |
January 11, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 583,389 |
Strike price (in dollars per share) | $ 32.16 |
Weighted Average Remaining Contractual Life | 2 years |
Fair value (in dollars per share) | $ 13.30 |
January 7, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 617,707 |
Strike price (in dollars per share) | $ 49.57 |
Weighted Average Remaining Contractual Life | 3 years |
Fair value (in dollars per share) | $ 7.52 |
January 6, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of OARs Outstanding (in shares) | shares | 514,670 |
Strike price (in dollars per share) | $ 45.33 |
Weighted Average Remaining Contractual Life | 4 years |
Fair value (in dollars per share) | $ 12.38 |
Employee compensation plans -_3
Employee compensation plans - Schedule of Stock Compensation Assumptions Used (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
January 11, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 12 days |
Expected volatility factor (as a percent) | 17.096% |
Risk-free interest rate (as a percent) | 1.741% |
Quarterly dividends (in dollars per share) | $ 0.6 |
January 10, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 1 year |
Expected volatility factor (as a percent) | 33.244% |
Risk-free interest rate (as a percent) | 4.75% |
Quarterly dividends (in dollars per share) | $ 0.6 |
January 11, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 2 years |
Expected volatility factor (as a percent) | 34.355% |
Risk-free interest rate (as a percent) | 4.244% |
Quarterly dividends (in dollars per share) | $ 0.6 |
January 7, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 3 years |
Expected volatility factor (as a percent) | 33.422% |
Risk-free interest rate (as a percent) | 4.008% |
Quarterly dividends (in dollars per share) | $ 0.6 |
January 6, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 4 years |
Expected volatility factor (as a percent) | 40.315% |
Risk-free interest rate (as a percent) | 3.927% |
Quarterly dividends (in dollars per share) | $ 0.6 |
Commitments and contingencies (
Commitments and contingencies (Details) | 28 Months Ended | ||||||
Feb. 09, 2024 USD ($) | Feb. 07, 2024 USD ($) | Jan. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) arbitration complaintant | Dec. 31, 2022 USD ($) | Sep. 13, 2022 USD ($) | Aug. 31, 2021 arbitration | |
Loss Contingencies [Line Items] | |||||||
Contractual obligation | $ 2,400,000 | ||||||
Lease not yet commenced, amount | 5,800,000 | $ 40,200,000 | |||||
Letters of credit outstanding, | 0 | ||||||
Estimated range of loss in excess of amounts accrued | $ 23,000,000 | ||||||
Number of arbitrations | arbitration | 48 | ||||||
Number of complainants | complaintant | 138 | ||||||
Litigation settlement expense | $ 87,700,000 | ||||||
Estimate of possible loss amount | $ 1,900,000 | ||||||
Subsequent Event | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation damages sought | $ 12,000,000 | ||||||
Litigation settlement amount | $ 1,000,000 | $ 1,200,000 | |||||
Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of arbitrations | arbitration | 7 | ||||||
Estimate of possible loss amount | $ 7,900,000 | ||||||
Settled Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of settled arbitrations | arbitration | 41 |
Regulatory requirements (Detail
Regulatory requirements (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Jan. 31, 2022 GBP (£) | Jan. 31, 2022 EUR (€) | |
Regulatory Capital Requirements [Line Items] | |||
Minimum capital required | $ 4,150,000 | ||
Oppenheimer | |||
Regulatory Capital Requirements [Line Items] | |||
Required percentage of net capital to aggregate customer-related debit items (as a percent) | 2% | ||
Net capital | $ 453,600,000 | ||
Aggregate indebtedness (as a percent) | 48.86% | ||
Excess capital | $ 435,000,000 | ||
Freedom | |||
Regulatory Capital Requirements [Line Items] | |||
Net capital | $ 4,100,000 | ||
Aggregate indebtedness (as a percent) | 6.67% | ||
Freedom maintain net capital equal to the greater | $ 100,000 | ||
Net capital in excess of minimum required | $ 4,000,000 | ||
Oppenheimer Europe Ltd | |||
Regulatory Capital Requirements [Line Items] | |||
Regulatory capital required to be maintained | £ 750,000 | € 730,000 | |
Oppenheimer Europe Ltd | Basel Three New Requirements | |||
Regulatory Capital Requirements [Line Items] | |||
Common Equity Tier 1 ratio (as a percent) | 134% | ||
Common Equity Tier 1 ratio required (as a percent) | 56% | ||
Tier 1 Capital ratio (as a percent) | 134% | ||
Tier 1 Capital ratio required (as a percent) | 75% | ||
Total Capital ratio (as a percent) | 182% | ||
Total Capital ratio required (as a percent) | 100% | ||
Oppenheimer Investments Asia Ltd. | |||
Regulatory Capital Requirements [Line Items] | |||
Regulatory capital required to be maintained | $ 384,120 | ||
Regulatory capital | 4,000,000 | ||
Excess Liquid Capital under Hong Kong SFC rules | $ 3,600,000 |
Goodwill and intangibles (Detai
Goodwill and intangibles (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill | $ 142,162,000 | $ 137,889,000 |
Indefinite intangible assets | 32,700,000 | |
Impairment of indefinite intangible assets | 0 | |
Defined-lived intangible assets | 1,600,000 | |
PCD reporting | ||
Goodwill [Line Items] | ||
Goodwill | 137,900,000 | |
Corporate And Other Reporting Unit | ||
Goodwill [Line Items] | ||
Goodwill | $ 4,300,000 |
Segment information - Reported
Segment information - Reported Revenue and Profit Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Total revenue | $ 1,248,825 | $ 1,110,941 | $ 1,394,035 |
Pre-Tax Income (Loss) | |||
Total pre-tax income (loss) | 46,770 | 45,554 | 224,641 |
Corporate/Other | |||
Revenue | |||
Total revenue | 12,741 | (1,802) | (1,327) |
Pre-Tax Income (Loss) | |||
Total pre-tax income (loss) | $ (108,804) | $ (106,753) | $ (116,469) |
Private Client | |||
Pre-Tax Income (Loss) | |||
Asset management fees | 90% | 90% | 90% |
Private Client | Operating Segments | |||
Revenue | |||
Total revenue | $ 801,754 | $ 675,680 | $ 665,060 |
Pre-Tax Income (Loss) | |||
Total pre-tax income (loss) | $ 194,444 | $ 142,250 | $ 101,146 |
Asset Management | |||
Pre-Tax Income (Loss) | |||
Asset management fees | 10% | 10% | 10% |
Asset Management | Operating Segments | |||
Revenue | |||
Total revenue | $ 88,433 | $ 99,242 | $ 104,598 |
Pre-Tax Income (Loss) | |||
Total pre-tax income (loss) | 24,091 | 35,753 | 35,874 |
Capital markets | Operating Segments | |||
Revenue | |||
Total revenue | 345,897 | 337,821 | 625,704 |
Pre-Tax Income (Loss) | |||
Total pre-tax income (loss) | $ (62,961) | $ (25,696) | $ 204,090 |
Segment information - Revenue C
Segment information - Revenue Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 1,248,825 | $ 1,110,941 | $ 1,394,035 |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 1,199,558 | 1,058,188 | 1,336,628 |
Europe/Middle East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 46,490 | 47,080 | 51,698 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 2,777 | $ 5,673 | $ 5,709 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jan. 26, 2024 $ / shares |
Class A Stock | |
Subsequent Events [Line Items] | |
Quarterly dividend payable (in dollars per share) | $ 0.15 |
Class B Stock | |
Subsequent Events [Line Items] | |
Quarterly dividend payable (in dollars per share) | $ 0.15 |