Note 5 - Net Trading

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Trading Activities [Text Block]

5. NET TRADING 

Net trading consisted of the following in the periods presented.

NET TRADING

(Dollars in Thousands)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2021			2020			2021			2020
Net realized gains (losses) - trading inventory	$	2,056		$	6,935		$	17,171		$	25,604
Net unrealized gains (losses) - trading inventory		1,871			(187	)		(2,216	)		1,378
Net gains and losses		3,927			6,748			14,955			26,982
Interest income- trading inventory		1,291			1,577			4,756			6,125
Interest income-receivables under resale agreements		23,580			19,040			71,729			77,168
Interest income		24,871			20,617			76,485			83,293
Interest expense-securities sold under agreements to repurchase		(12,031	)		(10,230	)		(36,698	)		(53,771	)
Interest expense-LegacyTexas Credit Facility		-			-			-			(39	)
Interest expense-margin payable		(168	)		(178	)		(561	)		(941	)
Interest expense		(12,199	)		(10,408	)		(37,259	)		(54,751	)
Net trading	$	16,599		$	16,957		$	54,181		$	55,524

Trading inventory includes investments classified as investments-trading as well as trading securities sold, not yet purchased.  See note 7. Also, see note 10 for discussion of receivables under resale agreements and securities sold under agreements to repurchase.  See note 6 for discussion of margin payable.  See note 17 for discussion of LegacyTexas Credit Facility.