Segment Reporting

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Basis for Presentation

The Company structures its segments primarily based upon the nature of the financial products and services provided to customers and the Company’s management organization. The Company evaluates performance and allocates resources based on segment pre-tax operating income or loss and segment pre-tax operating margin. Revenues and expenses directly associated with each respective segment are included in determining their operating results. Other revenues and expenses that are not directly attributable to a particular segment are allocated based upon the Company’s allocation methodologies, including each segment’s respective net revenues, use of shared resources, headcount or other relevant measures. Segment assets are based on those directly associated with each segment, and include an allocation of certain assets based on the most relevant measures applicable, including headcount and other factors. The substantial majority of the Company's net revenues and long-lived assets are located in the U.S.

Reportable segment financial results are as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2017			2016			2017			2016
Capital Markets
Investment banking
Financing
Equities	$	24,730		$	16,786		$	48,112		$	23,352
Debt	21,971			33,325			38,379			49,297
Advisory services	92,507			48,112			185,389			129,741
Total investment banking	139,208			98,223			271,880			202,390
Institutional sales and trading
Equities	20,569			22,612			40,675			42,281
Fixed income	19,221			28,952			42,461			46,006
Total institutional sales and trading	39,790			51,564			83,136			88,287
Management and performance fees	1,497			1,794			3,494			2,759
Investment income	5,307			7,451			15,815			9,537
Long-term financing expenses	(2,029		)	(2,293		)	(4,267		)	(4,585		)
Net revenues	183,773			156,739			370,058			298,388
Operating expenses (1)	164,233			152,028			328,293			290,883
Segment pre-tax operating income	$	19,540		$	4,711		$	41,765		$	7,505
Segment pre-tax operating margin	10.6		%	3.0		%	11.3		%	2.5		%
Continued on next page

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2017			2016			2017			2016
Asset Management
Management and performance fees
Management fees	$	13,689		$	12,801		$	27,699		$	25,684
Performance fees	—			—			—			—
Total management and performance fees	13,689			12,801			27,699			25,684
Investment income/(loss)	283			943			517			(33		)
Net revenues	13,972			13,744			28,216			25,651
Operating expenses (1)	13,645			11,946			27,305			23,205
Segment pre-tax operating income	$	327		$	1,798		$	911		$	2,446
Segment pre-tax operating margin	2.3		%	13.1		%	3.2		%	9.5		%
Total
Net revenues	$	197,745		$	170,483		$	398,274		$	324,039
Operating expenses (1)	177,878			163,974			355,598			314,088
Pre-tax operating income	$	19,867		$	6,509		$	42,676		$	9,951
Pre-tax operating margin	10.0		%	3.8		%	10.7		%	3.1		%

(1)Operating expenses include intangible asset amortization expense as set forth in the table below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2017		2016		2017		2016
Capital Markets	$	2,545	$	2,707	$	5,089	$	4,616
Asset Management	1,277		1,387		2,555		2,774
Total intangible asset amortization expense	$	3,822	$	4,094	$	7,644	$	7,390

Reportable segment assets are as follows:

	June 30,		December 31,
(Dollars in thousands)	2017		2016
Capital Markets	$	1,750,374	$	1,934,528
Asset Management	180,959		190,975
Total assets	$	1,931,333	$	2,125,503