10-Q

____________________________________________________________________________________________________

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________________

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

OR

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             .

Commission file number 1-31234

____________________________________________________________________________________________________

WESTWOOD HOLDINGS GROUP, INC.

(Exact name of registrant as specified in its charter)

____________________________________________________________________________________________________

Delaware		75-2969997
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
200 CRESCENT COURT, SUITE 1200
DALLAS,	Texas	75201
(Address of principal executive office)		(Zip Code)

(214) 756-6900

(Registrant’s telephone number, including area code)

____________________________________________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, par value $0.01 per share	WHG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  ☒

Shares of common stock, par value $0.01 per share, outstanding as of April 20, 2022: 8,578,015.

____________________________________________________________________________________________________

WESTWOOD HOLDINGS GROUP, INC.

INDEX

 

PART I	FINANCIAL INFORMATION	PAGE
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	1
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	2
	Condensed Consolidated Statement of Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	20
PART II	OTHER INFORMATION	21
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 6.	Exhibits	22
Signatures		23

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

(Unaudited)

	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	21,148	$	15,206
Accounts receivable	9,738		11,152
Investments, at fair value	52,343		65,024
Prepaid income taxes	235		233
Other current assets	2,407		2,246
Total current assets	85,871		93,861
Investments	4,455		4,455
Noncurrent investments at fair value	4,549		4,513
Goodwill	16,401		16,401
Deferred income taxes	827		848
Operating lease right-of-use assets	4,683		4,868
Intangible assets, net	11,506		11,911
Property and equipment, net of accumulated depreciation of $8,822 and $8,637	1,967		2,114
Other long-term assets	757		634
Total assets	$	131,016	$	139,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,337	$	2,637
Dividends payable	1,724		1,800
Compensation and benefits payable	2,309		9,530
Operating lease liabilities	1,469		1,409
Income taxes payable	990		466
Total current liabilities	8,829		15,842
Accrued dividends	492		1,133
Noncurrent operating lease liabilities	4,435		4,724
Total long-term liabilities	4,927		5,857
Total liabilities	13,756		21,699
Commitments and contingencies (Note 10)
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 11,030,410 and outstanding 8,575,451 shares at March 31, 2022; issued 10,658,644 and outstanding 8,253,491 shares at December 31, 2021	110		107
Additional paid-in capital	196,564		195,187
Treasury stock, at cost - 2,454,959 shares at March 31, 2022; 2,405,154 shares at December 31, 2021	(82,576)		(81,750)
Retained earnings	3,162		4,362
Total stockholders' equity	117,260		117,906
Total liabilities and stockholders' equity	$	131,016	$	139,605

See Notes to Condensed Consolidated Financial Statements.

1

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data and share amounts)

(Unaudited)

 

	Three Months Ended March 31,
	2022		2021
REVENUES:
Advisory fees:
Asset-based	$	11,790	$	10,450
Performance-based	—		1,959
Trust fees	5,715		6,065
Other, net	(289)		(155)
Total revenues	17,216		18,319
EXPENSES:
Employee compensation and benefits	10,334		11,548
Sales and marketing	482		230
Westwood mutual funds	596		391
Information technology	1,829		1,992
Professional services	1,520		1,317
General and administrative	2,040		2,072
Total expenses	16,801		17,550
Net operating income	415		769
Realized gains on private investments	—		8,325
Net change in unrealized appreciation (depreciation) on private investments	37		(2,326)
Investment income	(16)		196
Other income	158		50
Income before income taxes	594		7,014
Income tax expense	544		2,913
Net income	$	50	$	4,101
Total comprehensive income	$	50	$	4,101
Earnings per share:
Basic	$	0.01	$	0.52
Diluted	$	0.01	$	0.52
Weighted average shares outstanding:
Basic	7,865,174		7,887,044
Diluted	7,931,453		7,917,390

See Notes to Condensed Consolidated Financial Statements.

2

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

For the Three Months Ended March 31, 2022 and 2021

(In thousands, except share amounts)

(Unaudited)

	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings		Total
	Shares	Amount
Balance, December 31, 2021	8,253,491	$	107	$	195,187	$	(81,750)	$	4,362	$	117,906
Net income	—	—		—		—		50		50
Issuance of restricted stock, net of forfeitures	371,765	3		(3)		—		—		—
Dividends declared ($0.15 per share)	—	—		—		—		(1,250)		(1,250)
Stock-based compensation expense	—	—		1,380		—		—		1,380
Purchases of treasury stock	(12,202)	—		—		(200)		—		(200)
Restricted stock returned for payment of taxes	(37,603)	—		—		(626)		—		(626)
Balance, March 31, 2022	8,575,451	$	110	$	196,564	$	(82,576)	$	3,162	$	117,260

	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Total
	Shares	Amount
Balance, December 31, 2020	8,326,948	$	105	$	210,268	$	(77,967)	$	(1,695)	$	130,711
Net income	—	—		—		—		4,101		4,101
Issuance of restricted stock, net of forfeitures	129,905	2		(2)		—		—		—
Dividends declared ($0.10 per share)	—	—		—		—		(801)		(801)
Stock-based compensation expense	—	—		1,722		—		—		1,722
Purchases of treasury stock	(92,491)	—		—		(1,404)		—		(1,404)
Restricted stock returned for payment of taxes	(51,359)	—		—		(884)		—		(884)
Balance, March 31, 2021	8,313,003	$	107	$	211,988	$	(80,255)	$	1,605	$	133,445

See Notes to Condensed Consolidated Financial Statements.

3

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	50	$	4,101
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	177		207
Amortization of intangible assets	405		406
Net change in unrealized depreciation on investments	239		2,432
Realized gains on private investments	—		(8,325)
Stock based compensation expense	1,380		1,722
Deferred income taxes	21		40
Non-cash lease expense	185		307
Gain on asset disposition	—		(148)
Change in operating assets and liabilities:
Net sales (purchases) of trading securities	12,406		(4,444)
Accounts receivable	1,414		(2,295)
Other current assets	(283)		23
Accounts payable and accrued liabilities	(301)		803
Compensation and benefits payable	(7,221)		(5,026)
Income taxes payable	524		3,630
Other liabilities	(226)		(478)
Net cash provided by (used in) operating activities	8,770		(7,045)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investments	—		9,258
Sale of property and equipment	—		501
Purchase of property and equipment	(30)		(9)
Purchase of investments	—		(15)
Net cash (used in) provided by investing activities	(30)		9,735
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(200)		(1,045)
Restricted stock returned for payment of taxes	(626)		(884)
Cash dividends paid	(1,972)		(801)
Net cash used in financing activities	(2,798)		(2,730)
Effect of currency rate changes on cash	—		13
NET CHANGE IN CASH AND CASH EQUIVALENTS	5,942		(27)
Cash and cash equivalents, beginning of period	15,206		13,016
Cash and cash equivalents, end of period	$	21,148	$	12,989
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	—	$	769
Accrued dividends	$	2,216	$	1,339
Accrued purchases of treasury stock	$	—	$	359

See Notes to Condensed Consolidated Financial Statements.

4

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. DESCRIPTION OF THE BUSINESS

Westwood Holdings Group, Inc. (“Westwood”, “the Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001. Westwood manages investment assets and provides services for its clients through its wholly-owned subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (referred to hereinafter together as “Westwood Management”) and Westwood Trust.

Westwood Management provides investment advisory services to institutional clients, a family of mutual funds called the Westwood Funds®, other mutual funds, individual investors and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in self-sponsored common trust funds (“CTFs”) to institutions and high net worth individuals. Revenue is largely dependent on the total value and composition of assets under management ("AUM"). Accordingly, fluctuations in financial markets and in the composition of AUM impact our revenues and results of operations.

Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment advisor ("RIA") under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).  The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC.

The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

3. REVENUE

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and trust fees are calculated based on a percentage of AUM and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

5

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Revenue Disaggregated

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands). In 2021, we recast certain prior year revenues related to performance-based fees.

	Three Months Ended March 31,
	2022		2021
Advisory Fees:
Institutional	$	7,048	$	8,858
Mutual Funds	4,549		3,414
Wealth Management	193		137
Trust Fees	5,715		6,065
Other, net	(289)		(155)
Total revenues	$	17,216	$	18,319

We serve clients primarily in the United States, as well as in certain international locations. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):

Three Months Ended March 31, 2022	Advisory		Trust		Other		Total
Canada	$	291	$	—	$	—	$	291
United States	11,499		5,715		(289)		16,925
Total	$	11,790	$	5,715	$	(289)	$	17,216

6

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Three Months Ended March 31, 2021	Advisory		Trust		Performance-based		Other		Total
Canada	$	276	$	—	$	—	$	—	$	276
Europe	638		—		262		—		900
United States	9,546		6,065		1,687		(155)		17,143
Total	$	10,460	$	6,065	$	1,949	$	(155)	$	18,319

4. SEGMENT REPORTING

We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision-making purposes. The Company’s chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings. Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment.

Advisory

Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, (ii) subadvisory relationships where Westwood provides investment management services to the Westwood Funds®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including collective investment trusts. Westwood Management provides investment advisory services to similar clients, and is included in our Advisory segment.

Trust

Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment.

(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended March 31, 2022
Net fee revenues from external sources	$	11,790	$	5,715	$	—	$	—	$	17,505
Net intersegment revenues	577		90		—		(667)		—
Other, net	(289)		—		—		—		(289)
Total revenues	$	12,078	$	5,805	$	—	$	(667)	$	17,216
Segment assets	$	222,545	$	57,913	$	12,876	$	(162,318)	$	131,016
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401
Three Months Ended March 31, 2021
Net fee revenues from external sources	$	12,409	$	6,065	$	—	$	—	$	18,474
Net intersegment revenues	676		81		—		(757)		—
Other, net	(155)		—		—		—		(155)
Total revenues	$	12,930	$	6,146	$	—	$	(757)	$	18,319
Segment assets	$	207,193	$	54,143	$	12,603	$	(124,275)	$	149,664
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

7

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

5. INVESTMENTS

During 2018, we made a $5.4 million strategic investment in InvestCloud, a digital financial services provider ("InvestCloud"), which is included in “Investments” on our Condensed Consolidated Balance Sheets. This investment represents an equity interest in a private company without a readily determinable fair value. The Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Following observable price changes for this investment in the year ended December 31, 2019, we recorded an unrealized gain of $2.8 million. Following InvestCloud's recapitalization in the first quarter of 2021, we recorded a realized gain of approximately $8.3 million when our originally purchased shares were redeemed. Following this redemption we re-invested $4.4 million of our proceeds into newly issued shares of InvestCloud.

Our investment in Charis, the parent company of Westwood Private Bank ("Charis"), is included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets and is measured at fair value on a recurring basis. In the three months ended March 31, 2021, we recorded unrealized gains of approximately $0.4 million following fair value increases from market transactions.

In 2019 we made a $0.3 million investment in Westwood Hospitality Fund I, LLC, a private investment fund. Our investment is included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets and is measured at fair value on a recurring basis using net asset value (“NAV”) as a practical expedient.

All other investments are carried at fair value on a recurring basis and are accounted for as trading securities.

Investments carried at fair value are presented in the table below (in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2022:
U.S. Government and Government agency obligations	$	18,267	$	—	$	(529)	$	17,738
Money market funds	28,272		—		—		28,272
Equity funds	4,760		88		(90)		4,758
Equities	1,309		127		—		1,436
Exchange-traded bond funds	144		—		(5)		139
Total trading securities	52,752		215		(624)		52,343
Private investment fund	265		—		(42)		223
Private equity	3,420		906		—		4,326
Total investments carried at fair value	$	56,437	$	1,121	$	(666)	$	56,892
December 31, 2021:
U.S. Government and Government agency obligations	$	39,926	$	—	$	(491)	$	39,435
Money market funds	19,661		—		—		19,661
Equity funds	4,135		158		(7)		4,286
Equities	1,296		206		—		1,502
Exchange-traded bond funds	140		—		—		140
Total trading securities	65,158		364		(498)		65,024
Private investment fund	265		—		(121)		144
Private equity	3,420		949		—		4,369
Total investments carried at fair value	$	68,843	$	1,313	$	(619)	$	69,537

6. FAIR VALUE MEASUREMENTS

8

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

•Level 1 – quoted market prices in active markets for identical assets

•Level 2 – inputs other than quoted prices that are directly or indirectly observable

•Level 3 – significant unobservable inputs where there is little or no market activity

Our strategic investment in InvestCloud, discussed in Note 5 “Investments,” is excluded from the recurring fair value table shown below because we have elected to apply the measurement alternative for this investment.

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):

	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of March 31, 2022:
Investments in trading securities	$	52,343	$	—	$	—	$	—	$	52,343
Private investment fund	—		—		—		223		223
Private equity	—		—		4,326		—		4,326
Total assets measured at fair value	$	52,343	$	—	$	4,326	$	223	$	56,892
As of December 31, 2021:
Investments in trading securities	$	65,024	$	—	$	—	$	—	$	65,024
Private investment fund	—		—		—		144		144
Private equity	—		—		4,369		—		4,369
Total assets measured at fair value	$	65,024	$	—	$	4,369	$	144	$	69,537
(1) Comprised of certain investments measured at fair value using net asset value ("NAV") as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

Our investment in Charis is included within Level 3 of the fair value hierarchy as we value that investment utilizing inputs not observable in the market. Our investment is measured at fair value on a recurring basis using a market approach based on a price to tangible book value multiple range that is determined to be reasonable in the current environment, or on market transactions. Management believes this valuation methodology is consistent with the banking industry and we will reevaluate our methodology and inputs on a quarterly basis.

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands):

	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31,
	2022		2021
Beginning balance	$	4,369	$	3,431
Unrealized gains (losses) on private investments	(43)		441
Ending balance	$	4,326	$	3,872

The March 31, 2022 private investment fair value of $4.3 million was valued using a market approach based on a price to tangible book value multiple, with unobservable book value multiples ranging from $1.43 to $2.13 per share, with a weighted average of $1.57 per share. Significant increases (decreases) in book value multiples in isolation would have resulted in a significantly higher (lower) fair value measurement.

9

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

7. INCOME TAXES

Our effective income tax rate differed from the 21% statutory rate for the three months ended March 31, 2022 and 2021 due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

8. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. There were approximately 85,000 and 234,000 anti-dilutive restricted shares outstanding for the three months ended March 31, 2022 and March 31, 2021, respectively.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts):

	Three Months Ended March 31,
	2022		2021
Net income	$	50	$	4,101
Weighted average shares outstanding - basic	7,865,174		7,887,044
Dilutive potential shares from unvested restricted shares	66,279		30,346
Weighted average shares outstanding - diluted	7,931,453		7,917,390
Earnings per share:
Basic	$	0.01	$	0.52
Diluted	$	0.01	$	0.52

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested for impairment at least annually. We completed our most recent annual goodwill impairment assessment during the third quarter of 2021, and determined that no goodwill impairment related to the Trust segment was required. There was no goodwill impairment in the Trust segment during the three months ended March 31, 2022 or March 31, 2021.

Other Intangible Assets

Our intangible assets represent the acquisition date fair value of acquired client relationships, trade names, non-compete agreements and internally developed software and are reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review intangible assets for events or circumstances that would indicate impairment. No intangible asset impairments were recorded during the three months ended March 31, 2022 or March 31, 2021.

10. LEASES

As of March 31, 2022 there have been no material changes outside the ordinary course of business to our leases since December 31, 2021. For information regarding our leases, refer to Note 11 “Leases” in Part IV, Item 15. “Exhibits, Financial Statement Schedules” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

11. STOCKHOLDERS' EQUITY

Share Repurchase Program

10

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

In February 2020, our Board of Directors authorized management to repurchase up to an additional $10.0 million of our outstanding common stock on the open market or in privately negotiated transactions. In April 2020, our Board of Directors authorized management to repurchase up to an additional $10.0 million of share repurchases under our share repurchase program.

During the three months ended March 31, 2022, the Company repurchased 12,202 shares of our common stock at an average price of $16.39 per share, including commissions, for an aggregate purchase price of $0.2 million under our share repurchase plan. During the three months ended March 31, 2021, the Company repurchased 92,491 shares of our common stock at an average price of $15.19 per share, including commissions, for an aggregate purchase price of $1.4 million under our share repurchase plan.

12. VARIABLE INTEREST ENTITIES

We evaluated (i) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private equity funds Westwood Hospitality Fund I, LLC and Westwood Technology Opportunities Fund I, LP (collectively the “Private Funds”), (ii) our advisory relationships with the Westwood Funds®, and (iii) our investments in InvestCloud and Charis discussed in Note 5 “Investments” (“Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”).

Based on our analyses, we determined that the CTFs and Private Funds were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entities' economic performance, and the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs.

Based on our analyses, we determined the Westwood Funds® and Private Equity (i) have sufficient equity at risk to finance the entities' activities independently, (ii) have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entities that most significantly impact the entities' economic performance, and (iii) are not structured with disproportionate voting rights.

Based on our analyses of our investments in these entities for the periods ended March 31, 2022 and December 31, 2021, we have not consolidated the CTFs or Private Funds under the VIE method or the Westwood Funds® or Private Equity under the VOE method.

We recognized fee revenue from the Westwood VIEs and Westwood VOEs as follows (in millions):

	Three Months Ended
	March 31, 2022		March 31, 2021
Fee Revenues	$	5.7	$	4.9

The following table displays the AUM and the risk of loss in each vehicle (in millions):

	As of March 31, 2022
	Assets Under Management		Corporate Investment		Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	2,957	$	—	$	—
Common Trust Funds	876		—		—
Private Funds	7		0.2		0.2
Private Equity	—		8.8		8.8
All other assets:
Wealth Management	3,298
Institutional	6,716
Total Assets Under Management	$	13,854

11

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

13. RELATED PARTY TRANSACTIONS

The Company engages in transactions with its affiliates in the ordinary course of business. Westwood Management provides investment advisory services to the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns quarterly fees paid by clients of the fund or by the funds directly. The fees are based on negotiated fee schedules applied to AUM. For the three months ended March 31, 2022 and March 31, 2021, the Company earned insignificant fees from the affiliated funds.

One of our directors serves as a consultant to the Company under a consulting agreement. We recorded insignificant expenses related to this agreement for both the three months ended March 31, 2022 and March 31, 2021.

14. SUBSEQUENT EVENTS

Dividends Declared

On April 27, 2022, the Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock payable on July 1, 2022 to stockholders of record on June 3, 2022.

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Statements in this report and the Annual Report to Stockholders that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including, without limitation, words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “could,” “goal,” “potentially,” “may,” “designed” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 and those risks set forth below:

•the composition and market value of our AUM;

•our ability to maintain our fee structure in light of competitive fee pressures;

•our stockholder rights agreement may make it more difficult for others to obtain control over us, even if it would be beneficial to our stockholders;

•risks associated with actions of activist stockholders;

•distributions to our common stockholders have included and may in the future include a return of capital;

•inclusion of foreign company investments in our AUM;

•regulations adversely affecting the financial services industry;

•our ability to maintain effective cyber security;

•litigation risks;

•our ability to develop and market new investment strategies successfully;

•our reputation and our relationships with current and potential customers;

•our ability to attract and retain qualified personnel;

•our ability to perform operational tasks;

•our ability to select and oversee third-party vendors;

•our dependence on the operations and funds of our subsidiaries;

•our ability to maintain effective information systems;

•our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us;

•our stock is thinly traded and may be subject to volatility;

•in addition to our stockholder rights agreement, our organizational documents contain provisions that may prevent or deter another group from paying a premium over the market price to our stockholders to acquire our stock;

•competition in the investment management industry;

•our ability to avoid termination of client agreements and the related investment redemptions;

•the significant concentration of our revenues in a small number of customers;

•our relationships with investment consulting firms;

•the impact of the recent COVID-19 pandemic;

•our ability to identify and execute on our strategic initiatives;

•our ability to declare and pay dividends;

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•our ability to fund future capital requirements on favorable terms;

•our ability to properly address conflicts of interest;

•our ability to maintain adequate insurance coverage; and

•our ability to maintain an effective system of internal controls.

You should not unduly rely on these forward-looking statements, which speak only as of the date of this report. We are not obligated and do not undertake an obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances occurring after the date of this report or to reflect the occurrence of unanticipated events or otherwise.

Overview

We manage investment assets and provide services for our clients through our subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (each of which is an SEC-registered investment advisor and referred to hereinafter together as “Westwood Management”) and Westwood Trust. Westwood Management provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds®, other mutual funds, individuals and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in common trust funds to institutions and high net worth individuals. Our revenues are generally derived from fees based on a percentage of AUM.

We continue to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, particularly its impact on global stock markets. Beginning in 2020, we have taken a number of precautionary measures designed to help minimize the risk of spreading the virus to our employees, including enabling our employees to work remotely. The investments we have made in technology over the past several years, particularly our significant investments in cloud-based systems and business continuity planning, have allowed our team to serve our clients seamlessly from their homes or our offices. While our ability to meet with clients declined at the beginning of the pandemic, subsequently we were able to restore our communications to pre-pandemic levels as our clients embraced digital interactions.

Revenues

We derive our revenues from investment advisory fees, trust fees and other revenues. Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and subadvisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Certain of our clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. We record revenue for performance-based fees at the end of the measurement period. Since our advance paying clients’ billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter, and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. Trust fees are primarily calculated quarterly in arrears based on a daily average of AUM for the quarter. Since billing periods for most of Westwood Trust's clients coincide with the calendar quarter, revenue is fully recognized within the quarter, and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Our other revenues primarily consist of investment income from our seed money investments into new investment strategies.

Employee Compensation and Benefits

Employee compensation and benefits expenses generally consist of salaries, incentive compensation, equity-based compensation and benefits.

Sales and Marketing

Sales and marketing expenses relate to our marketing efforts, including travel and entertainment, direct marketing and advertising costs.

Westwood Mutual Funds

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Westwood Mutual Funds expenses relate to our marketing, distribution and administration of the Westwood Funds®.

Information Technology

Information technology expenses are generally costs associated with proprietary investment research tools, maintenance and support, computing hardware, software licenses, telecommunications and other related costs.

Professional Services

Professional services expenses generally consist of costs associated with subadvisory fees, audit, tax, legal and other professional services.

General and Administrative

General and administrative expenses generally consist of costs associated with the lease of office space, amortization, depreciation, insurance, custody expense, Board of Directors' fees, investor relations, licenses and fees, office supplies and other miscellaneous expenses.

Realized Gains on Private Investments

Realized gains on private investments includes amounts by which the net proceeds from the sale or redemption of our private investments exceeded costs.

Net change in unrealized appreciation (depreciation) on Private Investments

Net change in unrealized appreciation (depreciation) on private investments includes changes in the value of our private equity investments.

Investment Income

Investment income primarily includes interest and dividend income on fixed income securities and money market funds.

Other Income

Other income primarily consists of income from the sublease of a portion of our corporate offices.

Assets Under Management

AUM decreased $0.6 billion to $13.9 billion at March 31, 2022 compared with $14.5 billion at March 31, 2021. The average of beginning and ending AUM for the first quarter of 2022 was $14.2 billion compared to $13.8 billion for the first quarter of 2021.

The following table displays AUM as of March 31, 2022 and 2021 (in millions):

	As of March 31,
	2022		2021		Change
Institutional(1)	$	6,716	$	7,569	(11)	%
Wealth Management(2)	4,181		4,360		(4)
Mutual Funds(3)	2,957		2,564		15
Total AUM(4)	$	13,854	$	14,493	(4)	%

(1)Institutional includes (i) separate accounts of corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

(2)Wealth Management includes assets for which Westwood Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals pursuant to trust or agency agreements and assets for which Westwood Advisors, L.L.C. provides advisory services to high net worth individuals. Investment subadvisory services are provided for the common trust funds by Westwood Management and external unaffiliated subadvisors. For certain assets in this category Westwood Trust currently provides limited custodial services for a minimal or no fee, viewing these assets as potentially converting to fee-generating managed assets in the future.

(3)Mutual Funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, institutional investors and wealth management accounts.

(4)AUM excludes $314 million and $272 million of assets under advisement (“AUA”) as of March 31, 2022 and 2021, respectively, related to our model portfolios for which we provided consulting advice but for which we did not have direct discretionary investment authority.

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Roll-Forward of Assets Under Management

 

	Three Months Ended March 31,
(in millions)	2022		2021
Institutional
Beginning of period assets	$	7,037	$	6,567
Inflows	79		732
Outflows	(155)		(219)
Net client flows	(76)		513
Market appreciation (depreciation)	(245)		489
Net change	(321)		1,002
End of period assets	$	6,716	$	7,569
Wealth Management
Beginning of period assets	$	4,420	$	4,335
Inflows	109		60
Outflows	(146)		(207)
Net client flows	(37)		(147)
Market appreciation (depreciation)	(202)		172
Net change	(239)		25
End of period assets	$	4,181	$	4,360
Mutual Funds
Beginning of period assets	$	3,046	$	2,143
Inflows	268		438
Outflows	(218)		(209)
Net client flows	50		229
Market appreciation (depreciation)	(139)		192
Net change	(89)		421
End of period assets	$	2,957	$	2,564
Total AUM
Beginning of period assets	$	14,503	$	13,045
Inflows	456		1,230
Outflows	(519)		(635)
Net client flows	(63)		595
Market appreciation (depreciation)	(586)		853
Net change	(649)		1,448
End of period assets	$	13,854	$	14,493

Three months ended March 31, 2022 compared to the three months ended March 31, 2021

The $0.6 billion decrease in AUM for the three months ended March 31, 2022 was due to market depreciation of $0.6 billion and net outflows of $0.1 billion. Net outflows were primarily related to our Enhanced Balance strategy.

The $1.4 billion increase in AUM for the three months ended March 31, 2021 was due to market appreciation of $0.9 billion and net inflows of $0.6 billion. Net inflows were primarily related to our SmallCap strategy.

Results of Operations

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The following table (dollars in thousands) and discussion of our results of operations are based upon data derived from the Condensed Consolidated Statements of Comprehensive Income contained in our Condensed Consolidated Financial Statements and should be read in conjunction with those statements included elsewhere in this report.

	Three Months Ended
	March 31,
	2022		2021		Change
Revenues:
Advisory fees: asset-based	$	11,790	$	10,450	13	%
Advisory fees: performance-based	—		1,959		(100)
Trust fees: asset-based	5,715		6,065		(6)
Other, net	(289)		(155)		86
Total revenues	17,216		18,319		(6)
Expenses:
Employee compensation and benefits	10,334		11,548		(11)
Sales and marketing	482		230		110
Westwood mutual funds	596		391		52
Information technology	1,829		1,992		(8)
Professional services	1,520		1,317		15
General and administrative	2,040		2,072		(2)
Total expenses	16,801		17,550		(4)
Net operating income	415		769
Realized gains on private investments	—		8,325		(100)
Net change in unrealized appreciation (depreciation) on private investments	37		(2,326)		(102)
Investment income	(16)		196		(108)
Other income	158		50		216
Income before income taxes	594		7,014
Income tax expense	544		2,913		(81)
Net income	$	50	$	4,101	(99)	%

_________________________

NM    Not meaningful

Three months ended March 31, 2022 compared to three months ended March 31, 2021

Total revenues. Total revenues decreased $1.1 million, or 6%, to $17.2 million for the three months ended March 31, 2022 compared with $18.3 million for the three months ended March 31, 2021. Asset-based advisory fees increased $1.3 million, or 13%, and Trust fees decreased $0.4 million, or 6%. Performance-based advisory fees decreased $2.0 million due to reflecting lower performance fees in the three months ended March 31, 2022.

Employee compensation and benefits. Employee compensation and benefits decreased $1.2 million to $10.3 million compared with $11.5 million for 2021 due to lower commissions and incentive compensation.

Sales and marketing. Sales and marketing expenses increased $0.3 million, or 110%, to $0.5 million compared with $0.2 million for 2021 as in-person sales activities returned to pre-COVID-19 levels.

Realized gains on private investments. We recorded a realized gain of approximately $8.3 million in connection with InvestCloud's recapitalization in the first quarter of 2021.

Net change in unrealized appreciation (depreciation) on private investments. We recorded a $2.8 million net change in unrealized depreciation to reflect the recognition of previously recorded unrealized gains in connection with InvestCloud's recapitalization in the first quarter of 2021, partially offset by $0.4 million of fair value increases from market transactions related to our investment in Charis.

Income tax expense. Our effective tax rate of 91.6% differed from the 21% statutory rate for the first quarter of 2022 primarily due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

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Supplemental Financial Information

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings and Economic EPS. We provide these measures in addition to, not as a substitute for, net income and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic Earnings and Economic EPS to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP net income or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP.

We define Economic Earnings as net income plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings divided by diluted weighted average shares outstanding.

The following tables provide a reconciliation of net income to Economic Earnings and Economic Earnings by segment (in thousands, except share and per share amounts):

	Three Months Ended March 31,				Change
	2022		2021
Net income	$	50	$	4,101	(99)	%
Stock-based compensation expense	1,380		1,722		(20)
Intangible amortization	405		406		—
Tax benefit from goodwill amortization	59		59		—
Economic Earnings	$	1,894	$	6,288	(70)	%
Earnings per share	$	0.01	$	0.52	(98)	%
Stock-based compensation expense	0.17		0.21		(19)
Intangible amortization	0.05		0.05		—
Tax benefit from goodwill amortization	0.01		0.01		0
Economic Earnings per share	$	0.24	$	0.79	(70)	%
Diluted weighted average shares outstanding	7,931,453		7,917,390
Economic Earnings by Segment:
Advisory	$	4,344	$	6,550	(34)	%
Trust	788		2,984		(74)
Westwood Holdings	(3,238)		(3,246)		—
Consolidated	$	1,894	$	6,288	(70)	%

Liquidity and Capital Resources

We fund our operations and cash requirements with cash generated from operating activities. We may also use cash from operations to pay dividends to our stockholders. We reinstated a dividend in the first quarter of 2021, following a suspension in the second quarter of 2020 as we preserved capital and additional financial flexibility amid the uncertainties created by the COVID-19 pandemic.

As of March 31, 2022 and December 31, 2021, we had no debt. The changes in net cash provided by operating activities generally reflect changes in earnings plus the effects of non-cash items and changes in working capital, including liquidation of investments used to cover current liabilities. Changes in working capital, especially accounts receivable and

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accounts payable, are generally the result of timing differences between collection of fees billed and payment of operating expenses.

During the three months ended March 31, 2022, cash flow provided by operating activities was $8.8 million, which included net sales of $12.4 million of current investments partially offset by a reduction in compensation and benefits payable of $7.2 million. During the three months ended March 31, 2021, cash flow used in operating activities was $7.0 million, which included net purchases of $4.4 million of current investments, a reduction in compensation and benefits payable of $5.0 million, and a $2.3 million change in accounts receivable, partially offset by income taxes payable and positive adjustments to net income.

Cash flow used in investing activities during the three months ended March 31, 2022 was related to purchases of property and equipment. Cash flow provided by investing activities during the three months ended March 31, 2021 was related to realized gains on private investments and the sale of property and equipment following the sublease of a portion of our Dallas, Texas corporate office space.

Cash flows used in financing activities of $2.8 million for the three months ended March 31, 2022 reflected the payment of dividends, restricted stock returned for the payment of taxes and treasury stock repurchases. Cash flows used in financing activities of $2.7 million for the three months ended March 31, 2021 reflected treasury stock repurchases, the payment of dividends and restricted stock returned for the payment of taxes.

We had cash and short-term investments of $73.5 million as of March 31, 2022 and $80.2 million as of December 31, 2021. At March 31, 2022 and December 31, 2021, working capital aggregated $77.0 million and $78.0 million, respectively.

Westwood Trust is required to maintain cash and investments in an amount equal to the minimum restricted capital of $4.0 million, as required by the Texas Finance Code. Restricted capital is included in Investments in the accompanying Condensed Consolidated Balance Sheets. At March 31, 2022, Westwood Trust had approximately $19.5 million in excess of its minimum capital requirement.

Our future liquidity and capital requirements will depend upon numerous factors, including our results of operations, the timing and magnitude of capital expenditures or strategic initiatives, our dividend policy and other business and risk factors described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021. We believe that current cash and short-term investment balances plus cash generated from operations will be sufficient to meet both the operating and capital requirements of our ordinary business operations through at least the next twelve months, however there can be no assurance that we will not require additional financing within this time frame. Failure to raise needed capital on attractive terms, if at all, could have a material adverse effect on our business, financial condition and results of operations.

Contractual Obligations

As of March 31, 2022, there have been no material changes outside of the ordinary course of business to our contractual obligations since December 31, 2021. For information regarding our contractual obligations, refer to “Contractual Obligations” in Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Critical and Significant Accounting Policies and Estimates

There have been no significant changes in our critical or significant accounting policies and estimates since December 31, 2021. Information with respect to our critical accounting policies and estimates that we believe could have the most significant effect on our reported consolidated results and require difficult, subjective or complex judgment by management is described under “Critical Accounting Policies and Estimates” in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Accounting Developments

Refer to Note 2 “Summary of Significant Accounting Policies” in our Condensed Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q for a description of recently issued accounting guidance.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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There have been no significant changes in our Quantitative and Qualitative Disclosures about Market Risk from those previously reported in our Annual Report on Form 10-K for the year ended December 31, 2021.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, to allow timely decisions regarding required disclosure. An evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, our management, including our Chief Executive Officer and our Chief Financial Officer, concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Controls over Financial Reporting

During the quarter ended March 31, 2022, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Due to our significant investments in cloud-based systems, the impact of our employees working remotely did not hinder the execution of our internal control processes and procedures.

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PART II. OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

None.

ITEM 1A.    RISK FACTORS

Our business and future results may be affected by a number of risks and uncertainties that should be considered carefully. In addition, this report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including the risks described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and the risks set forth below.

There have been no material changes to the risk factors previously disclosed in the Form 10-K. You should carefully consider the following risks and the risks included in the Company’s Annual Report on Form 10-K, together with all of the other information in this Quarterly Report on Form 10-Q, including our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. The occurrence of any single risk or any combination of risks could materially and adversely affect our business, financial condition, results of operations, cash flows and the trading price of our common stock.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On July 20, 2012, our Board of Directors authorized management to repurchase up to $10.0 million of our outstanding common stock on the open market or in privately negotiated transactions. Our Board of Directors authorized an additional $5.0 million of repurchases under the share repurchase program in July 2016, an additional $10.0 million in February 2020, and an additional $10.0 million in April 2020. The share repurchase program has no expiration date and may be discontinued at any time by the Board of Directors.

Between January 1, 2022 and March 31, 2022, under the share repurchase program, the Company repurchased 12,202 shares of our common stock at an average price of $16.39 per share, including commissions, for an aggregate purchase price of $0.2 million. The following table displays information with respect to the treasury shares we purchased during the three months ended March 31, 2022:

	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1)
Repurchase program (1)					$	6,900,000
February 2022	12,202	$	16.39	12,202

(1)These purchases relate to the share repurchase program and were authorized in April 2020.

21

ITEM 6.    EXHIBITS

31.1*	Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)
31.2*	Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)
32.1**	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following financial information from Westwood Holdings Group, Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2022, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021; (ii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 2021; (iii) Condensed Consolidated Statements of Stockholders' Equity; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021; and (v) Notes to the Condensed Consolidated Financial Statements.
104*	Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)

*    Filed herewith.

**    Furnished herewith.

22

SIGNATURES

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

 

Dated:	April 27, 2022	WESTWOOD HOLDINGS GROUP, INC.
		By:	/s/ Brian O. Casey
			Brian O. Casey
			President and Chief Executive Officer
		By:	/s/ Murray Forbes III
			Murray Forbes III
			Chief Financial Officer and Treasurer

23

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a)

I, Brian O. Casey, certify that:

1.I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 27, 2022

/s/ Brian O. Casey

Brian O. Casey

President & Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a)

I, Murray Forbes III, certify that:

1.I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 27, 2022

/s/ Murray Forbes III

Murray Forbes III

Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westwood Holdings Group, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian O. Casey, President & Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 27, 2022

/s/ Brian O. Casey

Brian O. Casey

President & Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Westwood Holdings Group, Inc. and will be retained by Westwood Holdings Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westwood Holdings Group, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Murray Forbes III, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 27, 2022

/s/ Murray Forbes III

Murray Forbes III

Chief Financial Officer and Treasurer

A signed original of this written statement required by Section 906 has been provided to Westwood Holdings Group, Inc. and will be retained by Westwood Holdings Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Oct. 20, 2021
Document And Entity Information [Abstract]
Document Transition Report	false
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2969997
Entity Address, Address Line One	200 CRESCENT COURT, SUITE 1200
Title of 12(b) Security	Common stock, par value $0.01 per share
Entity Registrant Name	WESTWOOD HOLDINGS GROUP, INC.
City Area Code	214
Local Phone Number	756-6900
Entity Central Index Key	0001165002
Document Type	10-Q
Document Period End Date	Mar. 31, 2022
Entity File Number	1-31234
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		8,578,015
Entity Emerging Growth Company	false
Trading Symbol	WHG
Security Exchange Name	NYSE
Entity Address, City or Town	DALLAS,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
Entity Small Business	true
Entity Filer Category	Non-accelerated Filer

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Operating Lease, Liability, Current		$ 1,469,000	$ 1,409,000
Current Assets:
Cash and cash equivalents		21,148,000	15,206,000
Accounts receivable		9,738,000	11,152,000
Investments, at fair value		52,343,000	65,024,000
Income Taxes Receivable, Current		235,000	233,000
Other current assets		2,407,000	2,246,000
Total current assets		85,871,000	93,861,000
Long-term Investments		4,455,000	4,455,000
Long-term Investments Carried at Fair Value		4,549,000	4,513,000
Goodwill		16,401,000	16,401,000
Deferred income taxes		827,000	848,000
Operating lease right-of-use assets		4,683,000	4,868,000
Intangible assets, net		11,506,000	11,911,000
Property and equipment, net of accumulated depreciation of $8,822 and $8,637		1,967,000	2,114,000
Other long-term assets		757,000	634,000
Total assets		131,016,000	139,605,000
Current liabilities:
Accounts payable and accrued liabilities		2,337,000	2,637,000
Dividends payable		1,724,000	1,800,000
Compensation and benefits payable		2,309,000	9,530,000
Income taxes payable		990,000	466,000
Total current liabilities		8,829,000	15,842,000
Accrued dividends		492,000	1,133,000
Operating Lease, Liability, Noncurrent		4,435,000	4,724,000
Liabilities, Noncurrent	$ 4,927,000		5,857,000
Total liabilities		13,756,000	21,699,000
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 11,030,410 and outstanding 8,575,451 shares at March 31, 2022; issued 10,658,644 and outstanding 8,253,491 shares at December 31, 2021		110,000	107,000
Additional paid-in capital		196,564,000	195,187,000
Treasury stock, at cost - 2,454,959 shares at March 31, 2022; 2,405,154 shares at December 31, 2021		(82,576,000)	(81,750,000)
Retained earnings		3,162,000	4,362,000
Total stockholders' equity		117,260,000	117,906,000
Total liabilities and stockholders' equity		$ 131,016,000	$ 139,605,000

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 7,144	$ 6,462
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	10,314,305	10,182,583
Common stock, shares outstanding	8,906,152	8,904,902
Treasury stock, shares	1,408,152	1,277,681
Long-term Investments Carried at Fair Value	$ 4,549	$ 4,513

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Realized Investment Gains (Losses)	$ 0	$ (8,325)
Gain (Loss) on Investments	0
REVENUES:
Other Revenue, Net	(289)	(155)
Total revenues	17,216	18,319
EXPENSES:
Employee compensation and benefits	10,334	11,548
Sales and marketing	482	230
Westwood mutual funds	596	391
Information technology	1,829	1,992
Professional services	1,520	1,317
General and administrative	2,040	2,072
Total expenses	16,801	17,550
Operating Income (Loss)	415	769
Net change in unrealized appreciation (depreciation) on private investments	37	(2,326)
Other Income	158	50
Income before income taxes	594	7,014
Income tax expense	544	2,913
Net income	50	4,101
Other comprehensive income (loss):
Total comprehensive income	$ 50	$ 4,101
Earnings per share:
Basic (dollars per share)	$ 0.01	$ 0.52
Diluted (dollars per share)	$ 0.01	$ 0.52
Weighted average shares outstanding:
Basic (shares)	7,865,174	7,887,044
Diluted (shares)	7,931,453	7,917,390
Investment Income, Investment Expense	$ (16)	$ 196
Asset Management [Member]
Revenue from Contract with Customer, Including Assessed Tax	11,790	10,450
Investment Performance [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	1,959
Fiduciary and Trust [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,715	$ 6,065

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
BALANCE at Dec. 31, 2020		$ 105	$ 210,268	$ (77,967)	$ (1,695)
BALANCE, shares at Dec. 31, 2020		8,326,948
Net Income (Loss) Attributable to Parent	$ 4,101,000
Issuance of restricted stock, net of forfeitures, shares		129,905
Dividends declared	(801)				(801)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,722		1,722
Purchases of treasury stock, shares		(92,491)
Restricted stock returned for payment of taxes, shares		(51,359)
BALANCE at Mar. 31, 2021	133,445	$ 107	211,988	(80,255)	1,605
BALANCE, shares at Mar. 31, 2021		8,313,003
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	884			884
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 2	(2)
Treasury Stock, Value, Acquired, Cost Method	1,404			1,404
BALANCE at Dec. 31, 2021	$ 117,906,000	$ 107,000	195,187,000	(81,750,000)	4,362,000
BALANCE, shares at Dec. 31, 2021	8,904,902	8,253,491
Net Income (Loss) Attributable to Parent	$ 50,000
Issuance of restricted stock, net of forfeitures, shares		371,765
Dividends declared	(1,250,000)				(1,250,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,380,000		1,380,000
Purchases of treasury stock, shares		(12,202)
Restricted stock returned for payment of taxes, shares		(37,603)
BALANCE at Mar. 31, 2022	$ 117,260,000	$ 110,000	196,564,000	(82,576,000)	$ 3,162,000
BALANCE, shares at Mar. 31, 2022	8,906,152	8,575,451
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	$ 626,000			626,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 3,000	$ (3,000)
Treasury Stock, Value, Acquired, Cost Method	$ 200,000			$ 200,000

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (dollars per share)	$ 0.15	$ 0.1

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) Attributable to Parent	$ 50	$ 4,101
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	177	207
Amortization of intangible assets	405	406
Net change in unrealized depreciation on investments	239	2,432
Realized Investment Gains (Losses)	0	(8,325)	$ 8,300
Stock based compensation expense	1,380	1,722
Deferred income taxes	21	40
Non-cash lease expense	185	307
Gain (Loss) on Disposition of Assets	0	(148)
Change in operating assets and liabilities:
Net sales (purchases) of trading securities	12,406	(4,444)
Accounts receivable	1,414	(2,295)
Other current assets	(283)	23
Accounts payable and accrued liabilities	(301)	803
Compensation and benefits payable	(7,221)	(5,026)
Income taxes payable	524	3,630
Other liabilities	(226)	(478)
Net Cash Provided by (Used in) Operating Activities	8,770	(7,045)
Proceeds from Sale of Debt and Equity Securities, FV-NI, Held-for-investment	0	9,258
Proceeds from Sale of Productive Assets	0	501
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(30)	(9)
Payments to Acquire Intangible Assets	0	(15)
Net Cash Provided by (Used in) Investing Activities	(30)	9,735
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(200)	(1,045)
Restricted stock returned for payment of taxes	(626)	(884)
Cash dividends paid	(1,972)	(801)
Net Cash Provided by (Used in) Financing Activities	(2,798)	(2,730)
Effect of currency rate changes on cash	0	13
NET CHANGE IN CASH AND CASH EQUIVALENTS	5,942	(27)
Cash and cash equivalents, beginning of period	15,206	13,016	13,016
Cash and cash equivalents, end of period	21,148	12,989	15,206
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	0	769
Accrued dividends	2,216	1,339
0	0	$ 359
Long-term Investments	$ 4,455		$ 4,455

XML

DESCRIPTION OF THE BUSINESS

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS

Westwood Holdings Group, Inc. (“Westwood”, “the Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001. Westwood manages investment assets and provides services for its clients through its wholly-owned subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (referred to hereinafter together as “Westwood Management”) and Westwood Trust.

Westwood Management provides investment advisory services to institutional clients, a family of mutual funds called the Westwood Funds®, other mutual funds, individual investors and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in self-sponsored common trust funds (“CTFs”) to institutions and high net worth individuals. Revenue is largely dependent on the total value and composition of assets under management ("AUM"). Accordingly, fluctuations in financial markets and in the composition of AUM impact our revenues and results of operations.

Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment advisor ("RIA") under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).  The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC.

The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

XML

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

•Level 1 – quoted market prices in active markets for identical assets

•Level 2 – inputs other than quoted prices that are directly or indirectly observable

•Level 3 – significant unobservable inputs where there is little or no market activity

Our strategic investment in InvestCloud, discussed in Note 5 “Investments,” is excluded from the recurring fair value table shown below because we have elected to apply the measurement alternative for this investment.

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):

	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of March 31, 2022:
Investments in trading securities	$	52,343	$	—	$	—	$	—	$	52,343
Private investment fund	—		—		—		223		223
Private equity	—		—		4,326		—		4,326
Total assets measured at fair value	$	52,343	$	—	$	4,326	$	223	$	56,892
As of December 31, 2021:
Investments in trading securities	$	65,024	$	—	$	—	$	—	$	65,024
Private investment fund	—		—		—		144		144
Private equity	—		—		4,369		—		4,369
Total assets measured at fair value	$	65,024	$	—	$	4,369	$	144	$	69,537
(1) Comprised of certain investments measured at fair value using net asset value ("NAV") as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

Our investment in Charis is included within Level 3 of the fair value hierarchy as we value that investment utilizing inputs not observable in the market. Our investment is measured at fair value on a recurring basis using a market approach based on a price to tangible book value multiple range that is determined to be reasonable in the current environment, or on market transactions. Management believes this valuation methodology is consistent with the banking industry and we will reevaluate our methodology and inputs on a quarterly basis.

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands):

	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31,
	2022		2021
Beginning balance	$	4,369	$	3,431
Unrealized gains (losses) on private investments	(43)		441
Ending balance	$	4,326	$	3,872

XML

GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested for impairment at least annually. We completed our most recent annual goodwill impairment assessment during the third quarter of 2021, and determined that no goodwill impairment related to the Trust segment was required. There was no goodwill impairment in the Trust segment during the three months ended March 31, 2022 or March 31, 2021.

Other Intangible Assets

Our intangible assets represent the acquisition date fair value of acquired client relationships, trade names, non-compete agreements and internally developed software and are reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review intangible assets for events or circumstances that would indicate impairment. No intangible asset impairments were recorded during the three months ended March 31, 2022 or March 31, 2021.

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REVENUE (Notes)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer, Excluding Assessed Tax

REVENUE

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and trust fees are calculated based on a percentage of AUM and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Revenue Disaggregated

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands). In 2021, we recast certain prior year revenues related to performance-based fees.

	Three Months Ended March 31,
	2022		2021
Advisory Fees:
Institutional	$	7,048	$	8,858
Mutual Funds	4,549		3,414
Wealth Management	193		137
Trust Fees	5,715		6,065
Other, net	(289)		(155)
Total revenues	$	17,216	$	18,319

We serve clients primarily in the United States, as well as in certain international locations. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):

Three Months Ended March 31, 2022	Advisory		Trust		Other		Total
Canada	$	291	$	—	$	—	$	291
United States	11,499		5,715		(289)		16,925
Total	$	11,790	$	5,715	$	(289)	$	17,216

Three Months Ended March 31, 2021	Advisory		Trust		Performance-based		Other		Total
Canada	$	276	$	—	$	—	$	—	$	276
Europe	638		—		262		—		900
United States	9,546		6,065		1,687		(155)		17,143
Total	$	10,460	$	6,065	$	1,949	$	(155)	$	18,319

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INCOME TAXES (Notes)	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXESOur effective income tax rate differed from the 21% statutory rate for the three months ended March 31, 2022 and 2021 due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

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RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSThe Company engages in transactions with its affiliates in the ordinary course of business. Westwood Management provides investment advisory services to the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns quarterly fees paid by clients of the fund or by the funds directly. The fees are based on negotiated fee schedules applied to AUM. For the three months ended March 31, 2022 and March 31, 2021, the Company earned insignificant fees from the affiliated funds.

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SEGMENT REPORTING

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision-making purposes. The Company’s chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings. Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment.

Advisory

Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, (ii) subadvisory relationships where Westwood provides investment management services to the Westwood Funds®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including collective investment trusts. Westwood Management provides investment advisory services to similar clients, and is included in our Advisory segment.

Trust

Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment.

(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended March 31, 2022
Net fee revenues from external sources	$	11,790	$	5,715	$	—	$	—	$	17,505
Net intersegment revenues	577		90		—		(667)		—
Other, net	(289)		—		—		—		(289)
Total revenues	$	12,078	$	5,805	$	—	$	(667)	$	17,216
Segment assets	$	222,545	$	57,913	$	12,876	$	(162,318)	$	131,016
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401
Three Months Ended March 31, 2021
Net fee revenues from external sources	$	12,409	$	6,065	$	—	$	—	$	18,474
Net intersegment revenues	676		81		—		(757)		—
Other, net	(155)		—		—		—		(155)
Total revenues	$	12,930	$	6,146	$	—	$	(757)	$	18,319
Segment assets	$	207,193	$	54,143	$	12,603	$	(124,275)	$	149,664
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

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SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2022
Subsequent Event [Line Items]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Restricted Stock Subject Only To A Service Condition Policy [Text Block]

Restricted Stock Subject Only to a Service Condition

We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur.

Restricted Stock Subject To Service And Performance Conditions Policy [Text Block]

Restricted Stock Subject to Service and Performance Conditions

Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed.

Revenue [Policy Text Block]

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and trust fees are calculated based on a percentage of AUM and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Basis of Presentation

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).  The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC.

The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

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EARNINGS PER SHARE Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share, Policy [Policy Text Block]	Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors.

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VARIABLE INTEREST ENTITIES Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Variable Interest Entities [Abstract]
Consolidation, Variable Interest Entity, Policy [Policy Text Block]	Based on our analyses of our investments in these entities for the periods ended March 31, 2022 and December 31, 2021, we have not consolidated the CTFs or Private Funds under the VIE method or the Westwood Funds® or Private Equity under the VOE method.

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REVENUE Policies (Policies)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue [Policy Text Block]

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and trust fees are calculated based on a percentage of AUM and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts):

	Three Months Ended March 31,
	2022		2021
Net income	$	50	$	4,101
Weighted average shares outstanding - basic	7,865,174		7,887,044
Dilutive potential shares from unvested restricted shares	66,279		30,346
Weighted average shares outstanding - diluted	7,931,453		7,917,390
Earnings per share:
Basic	$	0.01	$	0.52
Diluted	$	0.01	$	0.52

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Balances

Investments carried at fair value are presented in the table below (in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2022:
U.S. Government and Government agency obligations	$	18,267	$	—	$	(529)	$	17,738
Money market funds	28,272		—		—		28,272
Equity funds	4,760		88		(90)		4,758
Equities	1,309		127		—		1,436
Exchange-traded bond funds	144		—		(5)		139
Total trading securities	52,752		215		(624)		52,343
Private investment fund	265		—		(42)		223
Private equity	3,420		906		—		4,326
Total investments carried at fair value	$	56,437	$	1,121	$	(666)	$	56,892
December 31, 2021:
U.S. Government and Government agency obligations	$	39,926	$	—	$	(491)	$	39,435
Money market funds	19,661		—		—		19,661
Equity funds	4,135		158		(7)		4,286
Equities	1,296		206		—		1,502
Exchange-traded bond funds	140		—		—		140
Total trading securities	65,158		364		(498)		65,024
Private investment fund	265		—		(121)		144
Private equity	3,420		949		—		4,369
Total investments carried at fair value	$	68,843	$	1,313	$	(619)	$	69,537

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):

	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of March 31, 2022:
Investments in trading securities	$	52,343	$	—	$	—	$	—	$	52,343
Private investment fund	—		—		—		223		223
Private equity	—		—		4,326		—		4,326
Total assets measured at fair value	$	52,343	$	—	$	4,326	$	223	$	56,892
As of December 31, 2021:
Investments in trading securities	$	65,024	$	—	$	—	$	—	$	65,024
Private investment fund	—		—		—		144		144
Private equity	—		—		4,369		—		4,369
Total assets measured at fair value	$	65,024	$	—	$	4,369	$	144	$	69,537
(1) Comprised of certain investments measured at fair value using net asset value ("NAV") as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands):

	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended March 31,
	2022		2021
Beginning balance	$	4,369	$	3,431
Unrealized gains (losses) on private investments	(43)		441
Ending balance	$	4,326	$	3,872

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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2022

Variable Interest Entities [Abstract]

Variable Interest Entities

The following table displays the AUM and the risk of loss in each vehicle (in millions):

	As of March 31, 2022
	Assets Under Management		Corporate Investment		Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	2,957	$	—	$	—
Common Trust Funds	876		—		—
Private Funds	7		0.2		0.2
Private Equity	—		8.8		8.8
All other assets:
Wealth Management	3,298
Institutional	6,716
Total Assets Under Management	$	13,854

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REVENUE Table (Tables)

3 Months Ended

Mar. 31, 2022

Disaggregation of Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue disaggregated by account type (in thousands). In 2021, we recast certain prior year revenues related to performance-based fees.

	Three Months Ended March 31,
	2022		2021
Advisory Fees:
Institutional	$	7,048	$	8,858
Mutual Funds	4,549		3,414
Wealth Management	193		137
Trust Fees	5,715		6,065
Other, net	(289)		(155)
Total revenues	$	17,216	$	18,319

Revenue Disaggregation by Geographic Location [Table Text Block]

The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):

Three Months Ended March 31, 2022	Advisory		Trust		Other		Total
Canada	$	291	$	—	$	—	$	291
United States	11,499		5,715		(289)		16,925
Total	$	11,790	$	5,715	$	(289)	$	17,216

Three Months Ended March 31, 2021	Advisory		Trust		Performance-based		Other		Total
Canada	$	276	$	—	$	—	$	—	$	276
Europe	638		—		262		—		900
United States	9,546		6,065		1,687		(155)		17,143
Total	$	10,460	$	6,065	$	1,949	$	(155)	$	18,319

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LONG-TERM INCENTIVE COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Restricted Stock Subject Only To A Service Condition Policy [Text Block]

Restricted Stock Subject Only to a Service Condition

We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur.

Total Expense Recorded for Stock Based Compensation

The following table presents the total stock-based compensation expense recorded for stock-based compensation arrangements for the periods indicated (in thousands):

	Three Months Ended March 31,
	2022		2021
Service condition stock-based compensation expense	$	1,283	$	1,491
Performance condition stock-based compensation expense	97		231
Stock-based compensation expense under the Plan	1,380		1,722
Canadian Plan stock-based compensation expense	—		—
Total stock-based compensation expense	$	1,380	$	1,722

Restricted Stock Subject To Service And Performance Conditions Policy [Text Block]

Restricted Stock Subject to Service and Performance Conditions

Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed.

Restricted Stock Subject Only to a Service Condition

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Status and Changes in Restricted Stock Grants that Subject to Service Condition

The following table details the status and changes in our restricted stock grants subject only to a service condition for the three months ended March 31, 2022:

	Shares	Weighted Average Grant Date Fair Value
Non-vested, January 1, 2020	396,598	$	48.31
Granted	262,373	$	27.39
Vested	(140,974)	$	53.06
Forfeited	(26,372)	$	39.72
Non-vested, March 31, 2022	491,625	$	36.25

Restricted Shares Subject to Service and Performance Conditions

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Status and Changes in Restricted Stock Grants that Subject to Service Condition

The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the three months ended March 31, 2022:

	Shares	Weighted Average Grant Date Fair Value
Non-vested, January 1, 2020	80,975	$	49.73
Vested	(35,275)	$	55.11
Non-vested, March 31, 2022	45,700	$	45.58

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SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended March 31, 2022
Net fee revenues from external sources	$	11,790	$	5,715	$	—	$	—	$	17,505
Net intersegment revenues	577		90		—		(667)		—
Other, net	(289)		—		—		—		(289)
Total revenues	$	12,078	$	5,805	$	—	$	(667)	$	17,216
Segment assets	$	222,545	$	57,913	$	12,876	$	(162,318)	$	131,016
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401
Three Months Ended March 31, 2021
Net fee revenues from external sources	$	12,409	$	6,065	$	—	$	—	$	18,474
Net intersegment revenues	676		81		—		(757)		—
Other, net	(155)		—		—		—		(155)
Total revenues	$	12,930	$	6,146	$	—	$	(757)	$	18,319
Segment assets	$	207,193	$	54,143	$	12,603	$	(124,275)	$	149,664
Segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

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DESCRIPTION OF THE BUSINESS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain (Loss) on Disposition of Assets	$ 0	$ (148)

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EARNINGS PER SHARE (Details Textual) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive restricted shares	85	234

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Computation of Basic and Diluted Shares
Net Income (Loss) Attributable to Parent	$ 50	$ 4,101
Weighted average shares outstanding - basic (shares)	7,865,174	7,887,044
Dilutive potential shares from unvested restricted shares (shares)	66,279	30,346
Weighted average shares outstanding - diluted (shares)	7,931,453	7,917,390
Earnings per share:
Basic (dollars per share)	$ 0.01	$ 0.52
Diluted (dollars per share)	$ 0.01	$ 0.52

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INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2021
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	$ 52,752			$ 65,158
Gross Unrealized Gains	215			364
Gross Unrealized Losses	(624)			(498)
Debt Securities, Trading	52,343			65,024
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	56,437			68,843
Gross Unrealized Gains	1,121			1,313
Gross Unrealized Losses	(666)			(619)
Estimated Fair Value	56,892			69,537
Net change in unrealized appreciation (depreciation) on private investments	37	$ (2,326)		2,800
Unrealized Gain on Securities		400
Realized Investment Gains (Losses)	0	$ (8,325)	$ 8,325	8,300
U.S. Government and Government agency obligations
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	18,267			39,926
Gross Unrealized Gains	0			0
Gross Unrealized Losses	(529)			(491)
Debt Securities, Trading	17,738			39,435
Money market funds
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	28,272			19,661
Gross Unrealized Gains	0			0
Gross Unrealized Losses	0			0
Debt Securities, Trading	28,272			19,661
Equity funds
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	4,760			4,135
Gross Unrealized Gains	88			158
Gross Unrealized Losses	(90)			(7)
Debt Securities, Trading	4,758			4,286
Private investment fund
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	265			265
Gross Unrealized Gains	0			0
Gross Unrealized Losses	(42)			(121)
Estimated Fair Value	223			144
Private equity
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	3,420			3,420
Gross Unrealized Gains	906			949
Gross Unrealized Losses	0			0
Estimated Fair Value	4,326			4,369
Equity Securities
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	1,309			1,296
Gross Unrealized Gains	127			206
Gross Unrealized Losses	0			0
Debt Securities, Trading	1,436			1,502
us-gaap_EquitySecuritiesMember [Member]
Debt Securities, Trading, Gain (Loss) [Abstract]
Cost	144			140
Gross Unrealized Gains	0			0
Gross Unrealized Losses	(5)			0
Debt Securities, Trading	$ 139			$ 140

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INVESTMENTS (Details Textual) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2021	Feb. 28, 2019	May 31, 2018
Schedule of Investments [Line Items]
Long-term Investments	$ 4,455			$ 4,455	$ 300	$ 5,400
Estimated Fair Value	56,892			69,537
Unrealized Gain on Securities		$ 400
Gain (Loss) on Investments	0
Cost	52,752			65,158
Realized Investment Gains (Losses)	0	(8,325)	$ 8,325	8,300
Net change in unrealized appreciation (depreciation) on private investments	37	$ (2,326)		2,800
us-gaap_EquitySecuritiesMember [Member]
Schedule of Investments [Line Items]
Cost	$ 144			$ 140

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FAIR VALUE MEASUREMENTS (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Feb. 28, 2019 USD ($)	May 31, 2018 USD ($)
Investments in securities:
Investments in trading securities	$ 52,343,000		$ 65,024,000
Total assets measured at fair value	56,892,000		69,537,000
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	4,369,000	$ 3,431,000
Unrealized gains (losses) on private investments	(43,000)	441,000
Ending balance	$ 4,326,000	$ 3,872,000
Fair Value Inputs [Abstract] (Deprecated 2018-01-31)
Unobservable input -book value multiple - minimum | $ / shares	1.43
Unobservable input -book value multiple - maximum	2.13
Unobservable input -book value multiple - weighted average	1.57
Long-term Investments	$ 4,455,000		4,455,000	$ 300,000	$ 5,400,000
Level 1
Investments in securities:
Investments in trading securities	52,343,000		65,024,000
Total assets measured at fair value	52,343,000		65,024,000
Level 2
Investments in securities:
Investments in trading securities	0		0
Total assets measured at fair value	0		0
Level 3
Investments in securities:
Investments in trading securities	0		0
Total assets measured at fair value	4,326,000		4,369,000
Investments Measured at NAV
Investments in securities:
Investments in trading securities	0		0
Total assets measured at fair value	223,000		144,000
Private investment fund
Investments in securities:
Private	223,000		144,000
Private investment fund | Level 1
Investments in securities:
Private	0		0
Private investment fund | Level 2
Investments in securities:
Private	0		0
Private investment fund | Level 3
Investments in securities:
Private	0		0
Private investment fund | Investments Measured at NAV
Investments in securities:
Private	223,000		144,000
Private equity
Investments in securities:
Private	4,326,000		4,369,000
Private equity | Level 1
Investments in securities:
Private	0		0
Private equity | Level 2
Investments in securities:
Private	0		0
Private equity | Level 3
Investments in securities:
Private	4,326,000		4,369,000
Private equity | Investments Measured at NAV
Investments in securities:
Private	$ 0		$ 0

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GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of Intangible Assets (Excluding Goodwill)	$ 0	$ 0

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STOCKHOLDERS' EQUITY Share Repurchase Program (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Apr. 27, 2020	Dec. 31, 2018
Equity [Abstract]
Stock Repurchase Program, Authorized Amount			$ 10	$ 10,000,000
Treasury Stock Acquired, Average Cost Per Share	$ 16.39	$ 15.19
Stock Repurchased and Retired During Period, Shares	12,202	92,491
Treasury Stock, Value, Acquired, Par Value Method	$ 200,000	$ 1,400,000

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VARIABLE INTEREST ENTITIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Variable Interest Entity [Line Items]
Estimated Fair Value	$ 56,892		$ 69,537
Fee revenues from Westwood VIEs	5,700	$ 4,900
Common Trust Funds
Variable Interest Entity [Line Items]
Estimated Fair Value	$ 0

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VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entities
Assets Under Management	$ 13,854,000
Estimated Fair Value	56,892	$ 69,537
Westwood Funds®
Variable Interest Entities
Assets Under Management	2,957,000
Estimated Fair Value	0
Amount at Risk	0
Common Trust Funds
Variable Interest Entities
Assets Under Management	876,000
Estimated Fair Value	0
Amount at Risk	0
Westwood Hospitality Fund I LLC [Member]
Variable Interest Entities
Assets Under Management	7,000
Estimated Fair Value	200
Amount at Risk	200
Private equity
Variable Interest Entities
Assets Under Management	0
Estimated Fair Value	8,800
Amount at Risk	8,800
Wealth Management
Variable Interest Entities
Assets Under Management	3,298,000
Institutional
Variable Interest Entities
Assets Under Management	$ 6,716,000

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REVENUE Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer, Excluding Assessed Tax

REVENUE

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and trust fees are calculated based on a percentage of AUM and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues.

Revenue Disaggregated

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands). In 2021, we recast certain prior year revenues related to performance-based fees.

	Three Months Ended March 31,
	2022		2021
Advisory Fees:
Institutional	$	7,048	$	8,858
Mutual Funds	4,549		3,414
Wealth Management	193		137
Trust Fees	5,715		6,065
Other, net	(289)		(155)
Total revenues	$	17,216	$	18,319

We serve clients primarily in the United States, as well as in certain international locations. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):

Three Months Ended March 31, 2022	Advisory		Trust		Other		Total
Canada	$	291	$	—	$	—	$	291
United States	11,499		5,715		(289)		16,925
Total	$	11,790	$	5,715	$	(289)	$	17,216

Three Months Ended March 31, 2021	Advisory		Trust		Performance-based		Other		Total
Canada	$	276	$	—	$	—	$	—	$	276
Europe	638		—		262		—		900
United States	9,546		6,065		1,687		(155)		17,143
Total	$	10,460	$	6,065	$	1,949	$	(155)	$	18,319

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ 17,216

$ 18,319

Europe [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

900

Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

291

276

United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

16,925

17,143

Investment Advisory Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

11,790

10,460

Investment Advisory Services [Member] | Europe [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

638

Investment Advisory Services [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

291

276

Investment Advisory Services [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

11,499

9,546

Investment Advisory Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

7,048

8,858

Mutual Fund Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

4,549

3,414

Private Wealth Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

193

137

Performance-based fees [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

1,949

Performance-based fees [Member] | Europe [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

262

Performance-based fees [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

0

Performance-based fees [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

1,687

Trust Fees [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,715

6,065

Trust Fees [Member] | Europe [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

0

Trust Fees [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

0

0

Trust Fees [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,715

6,065

Trust Fees [Member] | Trust

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,715

6,065

Other Revenue Misc Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

(289)

(155)

Other Revenue Misc Services [Member] | Europe [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

0

Other Revenue Misc Services [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

0

0

Other Revenue Misc Services [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

(289)

(155)

Other Revenue Misc Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ (289)

$ (155)

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LONG-TERM INCENTIVE COMPENSATION (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount of shares purchased in the open market	$ 200,000	$ 1,045,000
Remaining unrecognized compensation cost recognized over a remaining weighted average period	2 years 6 months
Accrued liability	$ 50,000		$ 79,000
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited	56,625
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures	$ 1,300,000
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Anti-dilutive restricted shares	85,000	234,000
Mutual Fund [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expense related to mutual fund share incentive awards	$ 27,000	$ (100,000)
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total number of shares that may be issued under the stock based compensation Plan (including predecessor plans to the Plan)	5,398,100
Shares remain available for issuance	642,000
Remaining unrecognized compensation cost	$ 13,200,000
Nonvested restricted shares	491,625		396,598
Expense related to mutual fund share incentive awards	$ 1,380,000	1,722,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	350,000
Canadian Plan | Westwood International Advisors Inc
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount of shares purchased in the open market	$ 700,000
Purchases of treasury stock, shares	27,474
Mutual Fund Share Incentive Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Service period of mutual fund share incentive award	3 years
Expense related to mutual fund share incentive awards	$ 9,000	$ 12,000

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LONG-TERM INCENTIVE COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
DomesticEmployeeServiceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 1,283	$ 1,491
Performance Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	97	231
DomesticServiceAndPerformanceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	1,380	1,722
CanadianEmployeeServiceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	0	0
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 1,380	$ 1,722

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LONG-TERM INCENTIVE COMPENSATION (Details 1) - Restricted Shares Subject Only to a Service Condition	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Restricted shares subject only to a service condition:
Non-vested, beginning balance, shares | shares	396,598
Granted (shares) | shares	262,373
Vested (shares) | shares	(140,974)
Forfeited (shares) | shares	(26,372)
Non-vested, ending balance, shares | shares	491,625
Non-vested, beginning balance, (dollars per share) | $ / shares	$ 48.31
Granted (dollars per share) | $ / shares	27.39
Vested (dollars per share) | $ / shares	53.06
Forfeited (dollars per share) | $ / shares	39.72
Non-vested, ending balance, (dollars per share) | $ / shares	$ 36.25

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LONG-TERM INCENTIVE COMPENSATION (Details 2) - Restricted Shares Subject to Service and Performance Conditions	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Restricted shares subject only to a service condition:
Non-vested, beginning balance, shares | shares	80,975
Vested (shares) | shares	(35,275)
Non-vested, ending balance, shares | shares	45,700
Non-vested, beginning balance, (dollars per share) | $ / shares	$ 49.73
Vested (dollars per share) | $ / shares	55.11
Non-vested, ending balance, (dollars per share) | $ / shares	$ 45.58

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SEGMENT REPORTING (Details Textual)	3 Months Ended
	Mar. 31, 2022 Segment
Segment Reporting [Abstract]
Number of operating segments	2

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SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net fee revenues from external sources	$ 17,505	$ 18,474
Net intersegment revenues	0	0
Other, net	(289)	(155)
Total revenues	17,216	18,319
Segment assets	131,016	149,664	$ 139,605
Goodwill	16,401	16,401	$ 16,401
Operating Segments | Advisory
Segment Reporting Information [Line Items]
Net fee revenues from external sources	11,790	12,409
Net intersegment revenues	577	676
Other, net	(289)	(155)
Total revenues	12,078	12,930
Segment assets	222,545	207,193
Goodwill	0	0
Operating Segments | Trust
Segment Reporting Information [Line Items]
Net fee revenues from external sources	5,715	6,065
Net intersegment revenues	90	81
Other, net	0	0
Total revenues	5,805	6,146
Segment assets	57,913	54,143
Goodwill	16,401	16,401
Westwood Holdings
Segment Reporting Information [Line Items]
Net fee revenues from external sources	0	0
Net intersegment revenues	0	0
Other, net	0	0
Total revenues	0	0
Segment assets	12,876	12,603
Goodwill	0	0
Eliminations
Segment Reporting Information [Line Items]
Net fee revenues from external sources	0	0
Net intersegment revenues	(667)	(757)
Other, net	0	0
Total revenues	(667)	(757)
Segment assets	(162,318)	(124,275)
Goodwill	$ 0	$ 0

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SUBSEQUENT EVENTS (Details Textual) - USD ($)			1 Months Ended	3 Months Ended
	Jan. 03, 2022	Dec. 03, 2021	Apr. 30, 2020	Mar. 31, 2022	Mar. 31, 2021	Apr. 27, 2020	Dec. 31, 2018
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)				$ 0.15	$ 0.1
Stock Repurchase Program, Authorized Amount						$ 10	$ 10,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)			$ 0.15
Dividends payable, date to be paid	Jul. 01, 2022
Dividends payable, date of record		Jun. 03, 2022