QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
TABLE OF CONTENTS | Page | ||||
ii | |||||
ii | |||||
Note 1 - Organization and Description of the Company | |||||
Note 2 - Summary of Significant Accounting Policies | |||||
Note 3 - Revenue | |||||
Note 4 - Acquisitions | |||||
Note 5 - Fair Value Measurements | |||||
Note 6 - Investment Securities | |||||
Note 7 - Goodwill and Other Intangibles, Net | |||||
Note 9 - Corporate Debt and Other Borrowings, Net | |||||
Note 10 - Commitments and Contingencies | |||||
Note 11 - Stockholders’ Equity | |||||
Note 12 - Share-based Compensation | |||||
Note 13 - Earnings per Share | |||||
Note 14 - Net Capital and Regulatory Requirements | |||||
Note 15 - Financial Instruments with Off-Balance Sheet Credit Risk and Concentrations of Credit Risk | |||||
• Alternative Investments | • Retirement Plan Products | |||||||
• Annuities | • Separately Managed Accounts | |||||||
• Exchange Traded Products | • Structured Products | |||||||
• Insurance Based Products | • Unit Investment Trusts | |||||||
• Mutual Funds |
As of and for the Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
Operating Metrics (dollars in billions)(1) | 2024 | 2023 | 2023 | ||||||||
Advisory and Brokerage Assets(2) | |||||||||||
Advisory assets | $ | 793.0 | $ | 735.8 | $ | 620.9 | |||||
Brokerage assets | 647.9 | 618.2 | 554.3 | ||||||||
Total Advisory and Brokerage Assets | $ | 1,440.9 | $ | 1,354.1 | $ | 1,175.2 | |||||
Advisory as a % of total Advisory and Brokerage Assets | 55.0% | 54.3% | 52.8% | ||||||||
Net New Assets(3) | |||||||||||
Net new advisory assets | $ | 16.2 | $ | 20.5 | $ | 14.6 | |||||
Net new brokerage assets | 0.5 | 4.2 | 9.9 | ||||||||
Total Net New Assets | $ | 16.7 | $ | 24.7 | $ | 24.5 | |||||
Organic Net New Assets | |||||||||||
Organic net new advisory assets | $ | 16.2 | $ | 20.5 | $ | 13.7 | |||||
Organic net new brokerage assets | 0.5 | 4.2 | 7.1 | ||||||||
Total Organic Net New Assets | $ | 16.7 | $ | 24.7 | $ | 20.8 | |||||
Organic advisory net new assets annualized growth(4) | 8.8% | 12.4% | 9.4% | ||||||||
Total organic net new assets annualized growth(4) | 4.9% | 8.0% | 7.5% | ||||||||
Client Cash Balances | |||||||||||
Insured cash account sweep | $ | 32.6 | $ | 34.5 | $ | 39.7 | |||||
Deposit cash account sweep | 9.2 | 9.3 | 10.2 | ||||||||
Total Bank Sweep | 41.8 | 43.8 | 49.9 | ||||||||
Money market sweep | 2.4 | 2.4 | 2.6 | ||||||||
Total Client Cash Sweep Held by Third Parties | 44.2 | 46.2 | 52.5 | ||||||||
Client cash account(5) | 2.1 | 2.0 | 1.6 | ||||||||
Total Client Cash Balances | $ | 46.3 | $ | 48.2 | $ | 54.0 | |||||
Client Cash Balances as a % of Total Assets | 3.2% | 3.6% | 4.6% | ||||||||
Net buy (sell) activity(6) | $ | 37.8 | $ | 32.8 | $ | 36.9 |
As of and for the Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
Business and Financial Metrics (dollars in millions) | 2024 | 2023 | 2023 | ||||||||
Advisors | 22,884 | 22,660 | 21,521 | ||||||||
Average total assets per advisor(7) | $ | 63.0 | $ | 59.8 | $ | 54.6 | |||||
Share repurchases | $ | 70.0 | $ | 225.0 | $ | 275.0 | |||||
Dividends | $ | 22.4 | $ | 22.7 | $ | 23.6 | |||||
Leverage ratio(8) | 1.65 | 1.63 | 1.34 | ||||||||
Three Months Ended March 31, | ||||||||
Financial Metrics (dollars in millions, except per share data) | 2024 | 2023 | ||||||
Total revenue | $ | 2,832.6 | $ | 2,417.8 | ||||
Net income | $ | 288.8 | $ | 338.9 | ||||
Earnings per share (“EPS”), diluted | $ | 3.83 | $ | 4.24 | ||||
Non-GAAP Financial Metrics (dollars in millions, except per share data) | ||||||||
Adjusted EPS(9) | $ | 4.21 | $ | 4.49 | ||||
Gross profit(10) | $ | 1,066.4 | $ | 1,020.0 | ||||
Adjusted EBITDA(11) | $ | 540.5 | $ | 566.9 | ||||
Core G&A(12) | $ | 363.5 | $ | 326.2 |
March 31, | December 31, | March 31, | |||||||||
Credit Agreement Net Debt Reconciliation | 2024 | 2023 | 2023 | ||||||||
Corporate debt and other borrowings | $ | 3,875.5 | $ | 3,757.2 | $ | 2,870.2 | |||||
Corporate Cash(13) | (311.1) | (183.7) | (234.2) | ||||||||
Credit Agreement Net Debt(†) | $ | 3,564.5 | $ | 3,573.5 | $ | 2,636.0 | |||||
March 31, | December 31, | March 31, | |||||||||
EBITDA and Credit Agreement EBITDA Reconciliation | 2024 | 2023 | 2023 | ||||||||
Net income | $ | 1,016.1 | $ | 1,066.3 | $ | 1,050.8 | |||||
Interest expense on borrowings | 207.7 | 186.8 | 138.2 | ||||||||
Provision for income taxes | 358.3 | 378.5 | 331.9 | ||||||||
Depreciation and amortization | 258.1 | 247.0 | 210.4 | ||||||||
Amortization of other intangibles | 112.7 | 107.2 | 90.5 | ||||||||
EBITDA(†) | $ | 1,952.9 | $ | 1,985.8 | $ | 1,821.9 | |||||
Credit Agreement Adjustments: | |||||||||||
Acquisition costs and other(14)(15) | $ | 117.2 | $ | 110.2 | $ | 42.0 | |||||
Employee share-based compensation | 70.7 | 66.0 | 55.3 | ||||||||
M&A accretion(16) | 17.0 | 30.3 | 42.0 | ||||||||
Advisor share-based compensation | 2.6 | 2.6 | 2.6 | ||||||||
Credit Agreement EBITDA(†) | $ | 2,160.5 | $ | 2,194.8 | $ | 1,963.7 | |||||
March 31, | December 31, | March 31, | |||||||||
2024 | 2023 | 2023 | |||||||||
Leverage Ratio | 1.65 | 1.63 | 1.34 |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Adjusted Net Income / Adjusted EPS Reconciliation | Amount | Per Share | Amount | Per Share | ||||||||||
Net income / earnings per diluted share | $ | 288.8 | $ | 3.83 | $ | 338.9 | $ | 4.24 | ||||||
Amortization of other intangibles | 29.6 | 0.39 | 24.1 | 0.30 | ||||||||||
Acquisition costs(14) | 9.5 | 0.13 | 3.1 | 0.04 | ||||||||||
Tax benefit | (10.3) | (0.14) | (7.2) | (0.09) | ||||||||||
Adjusted Net Income / Adjusted EPS(†) | $ | 317.5 | $ | 4.21 | $ | 358.9 | $ | 4.49 | ||||||
Weighted-average shares outstanding, diluted | 75.5 | 80.0 |
Three Months Ended March 31, | ||||||||
Gross Profit | 2024 | 2023 | ||||||
Total revenue | $ | 2,832.6 | $ | 2,417.8 | ||||
Advisory and commission expense | 1,733.5 | 1,370.6 | ||||||
Brokerage, clearing and exchange expense | 30.5 | 26.1 | ||||||
Employee deferred compensation | 2.1 | 1.1 | ||||||
Gross Profit(†) | $ | 1,066.4 | $ | 1,020.0 |
Three Months Ended March 31, | ||||||||
EBITDA Reconciliation | 2024 | 2023 | ||||||
Net income | $ | 288.8 | $ | 338.9 | ||||
Interest expense on borrowings | 60.1 | 39.2 | ||||||
Provision for income taxes | 85.4 | 105.6 | ||||||
Depreciation and amortization | 67.2 | 56.1 | ||||||
Amortization of other intangibles | 29.6 | 24.1 | ||||||
EBITDA | $ | 531.0 | $ | 563.8 | ||||
Acquisition costs(14) | 9.5 | 3.1 | ||||||
Adjusted EBITDA(†) | $ | 540.5 | $ | 566.9 |
Three Months Ended March 31, | ||||||||
Core G&A Reconciliation | 2024 | 2023 | ||||||
Total expense | $ | 2,458.4 | $ | 1,973.3 | ||||
Advisory and commission | (1,733.5 | ) | (1,370.6 | ) | ||||
Depreciation and amortization | (67.2 | ) | (56.1 | ) | ||||
Interest expense on borrowings | (60.1 | ) | (39.2 | ) | ||||
Brokerage, clearing and exchange | (30.5 | ) | (26.1 | ) | ||||
Amortization of other intangibles | (29.6 | ) | (24.1 | ) | ||||
Employee deferred compensation | (2.1) | (1.1 | ) | |||||
Total G&A(†) | 535.4 | 456.1 | ||||||
Promotional (ongoing)(14)(17) | (132.3 | ) | (101.2 | ) | ||||
Employee share-based compensation | (22.6 | ) | (18.0 | ) | ||||
Acquisition costs(14) | (9.5 | ) | (3.1 | ) | ||||
Regulatory charges | (7.5 | ) | (7.7 | ) | ||||
Core G&A(†) | $ | 363.5 | $ | 326.2 |
Three Months Ended March 31, | ||||||||
Acquisition costs | 2024 | 2023 | ||||||
Compensation and benefits | $ | 3.9 | $ | 0.9 | ||||
Professional services | 3.2 | 1.6 | ||||||
Promotional(17) | 2.3 | 0.2 | ||||||
Other | 0.2 | 0.4 | ||||||
Acquisition costs(†) | $ | 9.5 | $ | 3.1 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | % Change | |||||||||
REVENUE | |||||||||||
Advisory | $ | 1,199,811 | $ | 954,057 | 26 | % | |||||
Commission: | |||||||||||
Sales-based | 385,235 | 286,072 | 35 | % | |||||||
Trailing | 361,211 | 317,653 | 14 | % | |||||||
Total commission | 746,446 | 603,725 | 24 | % | |||||||
Asset-based: | |||||||||||
Client cash | 352,382 | 418,275 | (16 | %) | |||||||
Other asset-based | 248,339 | 203,473 | 22 | % | |||||||
Total asset-based | 600,721 | 621,748 | (3 | %) | |||||||
Service and fee | 132,172 | 118,987 | 11 | % | |||||||
Transaction | 57,258 | 48,935 | 17 | % | |||||||
Interest income, net | 43,525 | 37,358 | 17 | % | |||||||
Other | 52,660 | 33,022 | 59 | % | |||||||
Total revenue | 2,832,593 | 2,417,832 | 17 | % | |||||||
EXPENSE | |||||||||||
Advisory and commission | 1,733,487 | 1,370,634 | 26 | % | |||||||
Compensation and benefits | 274,369 | 233,533 | 17 | % | |||||||
Promotional | 126,619 | 98,223 | 29 | % | |||||||
Depreciation and amortization | 67,158 | 56,054 | 20 | % | |||||||
Occupancy and equipment | 66,264 | 60,173 | 10 | % | |||||||
Interest expense on borrowings | 60,082 | 39,184 | 53 | % | |||||||
Brokerage, clearing and exchange | 30,532 | 26,126 | 17 | % | |||||||
Amortization of other intangibles | 29,552 | 24,092 | 23 | % | |||||||
Communications and data processing | 19,744 | 17,675 | 12 | % | |||||||
Professional services | 13,279 | 14,220 | (7 | %) | |||||||
Other | 37,315 | 33,421 | 12 | % | |||||||
Total expense | 2,458,401 | 1,973,335 | 25 | % | |||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 374,192 | 444,497 | (16 | %) | |||||||
PROVISION FOR INCOME TAXES | 85,428 | 105,613 | (19 | %) | |||||||
NET INCOME | $ | 288,764 | $ | 338,884 | (15 | %) |
March 31, | ||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Corporate advisory assets | $ | 537.6 | $ | 415.3 | $ | 122.3 | 29 | % | ||||||
Independent RIA advisory assets | 255.4 | 205.6 | 49.8 | 24 | % | |||||||||
Total advisory assets | $ | 793.0 | $ | 620.9 | $ | 172.1 | 28 | % |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Balance - Beginning of period | $ | 735.8 | $ | 583.1 | ||||
Net new advisory assets(1) | 16.2 | 14.6 | ||||||
Market impact(2) | 41.0 | 23.2 | ||||||
Balance - End of period | $ | 793.0 | $ | 620.9 |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Sales-based | $ | 385,235 | $ | 286,072 | $ | 99,163 | 35 | % | ||||||
Trailing | 361,211 | 317,653 | 43,558 | 14 | % | |||||||||
Total commission revenue | $ | 746,446 | $ | 603,725 | $ | 142,721 | 24 | % |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Balance - Beginning of period | $ | 618.2 | $ | 527.7 | ||||
Net new brokerage assets(1) | 0.5 | 9.9 | ||||||
Market impact(2) | 29.2 | 16.7 | ||||||
Balance - End of period | $ | 647.9 | $ | 554.3 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | Change | |||||||||
Payout rate | 86.64% | 86.19% | 45 bps |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | Change | |||||||||
Average number of employees | 8,724 | 7,124 | 22% |
March 31, 2024 | December 31, 2023 | |||||||
Cash and equivalents | $ | 1,102,270 | $ | 465,671 | ||||
Cash at regulated subsidiaries | (1,038,241) | (410,313) | ||||||
Excess cash at regulated subsidiaries per the Credit Agreement | 247,033 | 128,327 | ||||||
Corporate Cash | $ | 311,062 | $ | 183,685 | ||||
Corporate Cash | ||||||||
Cash at the Parent | $ | 30,781 | $ | 26,587 | ||||
Excess cash at regulated subsidiaries per the Credit Agreement | 247,033 | 128,327 | ||||||
Cash at non-regulated subsidiaries | 33,248 | 28,771 | ||||||
Corporate Cash | $ | 311,062 | $ | 183,685 |
Description | Borrower | Maturity Date | Outstanding | Available | ||||||||||
Senior secured, revolving credit facility | LPL Holdings, Inc. | March 2026 | $ | 401 | $ | 1,599 | ||||||||
Broker-dealer revolving credit facility | LPL Financial LLC | July 2024 | $ | — | $ | 1,000 | ||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | $ | 75 | ||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2024 | $ | — | $ | 50 | ||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | March 2025 | $ | — | $ | 75 | ||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | unspecified | |||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | unspecified |
March 31, 2024 | |||||
LPL Financial LLC | |||||
Net capital | $ | 328,479 | |||
Less: required net capital | 18,070 | ||||
Excess net capital | $ | 310,409 |
LPL Holdings, Inc. & LPL Financial Holdings Inc. | |||||
Three Months Ended March 31, | |||||
Combined Summarized Statements of Income | 2024 | ||||
Revenues(1) | $ | 49,734 | |||
Revenues from non-guarantor subsidiaries | 5,335 | ||||
Advisory and commission expense(1) | 49,140 | ||||
Interest expense on borrowings | 59,158 | ||||
Expenses from non-guarantor subsidiaries | 3,509 | ||||
Loss before provision for income taxes | (68,692) | ||||
Net loss | (53,128) |
LPL Holdings, Inc. & LPL Financial Holdings Inc. | ||||||||
Combined Summarized Statements of Financial Condition | March 31, 2024 | December 31, 2023 | ||||||
Cash and equivalents | $ | 30,781 | $ | 26,587 | ||||
Other receivables, net | 3,330 | 2,793 | ||||||
Property and equipment, net | 155,133 | 154,920 | ||||||
Goodwill | 1,251,908 | 1,251,908 | ||||||
Other intangibles, net | 88,467 | 95,461 | ||||||
Receivables from non-guarantor subsidiaries | 152,179 | 153,377 | ||||||
Other assets | 1,050,215 | 1,017,289 | ||||||
Corporate debt and other borrowings, net | 3,853,794 | 3,734,111 | ||||||
Accounts payable and accrued liabilities | 64,793 | 53,817 | ||||||
Payables to non-guarantor subsidiaries | 77,292 | 76,683 | ||||||
Other liabilities | 1,091,363 | 986,274 |
March 31, 2024 | ||||||||
Financial Ratio | Covenant Requirement | Actual Ratio | ||||||
Leverage Ratio (Maximum) | 4.0 | 1.65 | ||||||
Interest Coverage (Minimum) | 3.0 | 11.02 |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
REVENUE | ||||||||
Advisory | $ | $ | ||||||
Commission: | ||||||||
Sales-based | ||||||||
Trailing | ||||||||
Total commission | ||||||||
Asset-based: | ||||||||
Client cash | ||||||||
Other asset-based | ||||||||
Total asset-based | ||||||||
Service and fee | ||||||||
Transaction | ||||||||
Interest income, net | ||||||||
Other | ||||||||
Total revenue | ||||||||
EXPENSE | ||||||||
Advisory and commission | ||||||||
Compensation and benefits | ||||||||
Promotional | ||||||||
Depreciation and amortization | ||||||||
Occupancy and equipment | ||||||||
Interest expense on borrowings | ||||||||
Brokerage, clearing and exchange | ||||||||
Amortization of other intangibles | ||||||||
Communications and data processing | ||||||||
Professional services | ||||||||
Other | ||||||||
Total expense | ||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | ||||||||
PROVISION FOR INCOME TAXES | ||||||||
NET INCOME | $ | $ | ||||||
EARNINGS PER SHARE | ||||||||
Earnings per share, basic | $ | $ | ||||||
Earnings per share, diluted | $ | $ | ||||||
Weighted-average shares outstanding, basic | ||||||||
Weighted-average shares outstanding, diluted |
ASSETS | March 31, 2024 | December 31, 2023 | ||||||
Cash and equivalents | $ | $ | ||||||
Cash and equivalents segregated under federal or other regulations | ||||||||
Restricted cash | ||||||||
Receivables from clients, net | ||||||||
Receivables from brokers, dealers and clearing organizations | ||||||||
Advisor loans, net | ||||||||
Other receivables, net | ||||||||
Investment securities | ||||||||
Property and equipment, net | ||||||||
Goodwill | ||||||||
Other intangibles, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
LIABILITIES: | ||||||||
Client payables | $ | $ | ||||||
Payables to brokers, dealers and clearing organizations | ||||||||
Accrued advisory and commission expenses payable | ||||||||
Corporate debt and other borrowings, net | ||||||||
Accounts payable and accrued liabilities | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Note 10) | ||||||||
Common stock, $ | ||||||||
Additional paid-in capital | ||||||||
Treasury stock, at cost — | ( | ( | ||||||
Retained earnings | ||||||||
Total stockholders’ equity | ||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — December 31, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | — | ( | — | ( | |||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | ( | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — March 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — December 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | — | ( | — | ( | |||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | ( | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — March 31, 2024 | $ | $ | $ | ( | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | ||||||||
Amortization of other intangibles | ||||||||
Amortization of debt issuance costs | ||||||||
Share-based compensation | ||||||||
Provision for credit losses | ||||||||
Deferred benefit for income taxes | ( | |||||||
Loan forgiveness | ||||||||
Other | ||||||||
Changes in operating assets and liabilities: | ||||||||
Receivables from clients, net | ( | ( | ||||||
Receivables from brokers, dealers and clearing organizations | ( | |||||||
Advisor loans, net | ( | ( | ||||||
Other receivables, net | ( | ( | ||||||
Investment securities - trading | ||||||||
Other assets | ( | ( | ||||||
Client payables | ( | |||||||
Payables to brokers, dealers and clearing organizations | ( | |||||||
Accrued advisory and commission expenses payable | ( | |||||||
Accounts payable and accrued liabilities | ( | ( | ||||||
Other liabilities | ||||||||
Operating lease assets | ( | ( | ||||||
Net cash provided by (used in) operating activities | ( | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | ( | ( | ||||||
Acquisitions, net of cash acquired | ( | ( | ||||||
Proceeds from maturities of securities classified as held-to-maturity | ||||||||
Net cash used in investing activities | ( | ( | ||||||
Continued on following page |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from revolving credit facilities | ||||||||
Repayments of revolving credit facilities | ( | |||||||
Repayment of senior secured term loans | ( | ( | ||||||
Payment of contingent consideration | ( | |||||||
Tax payments related to settlement of restricted stock units | ( | ( | ||||||
Repurchase of common stock | ( | ( | ||||||
Dividends on common stock | ( | ( | ||||||
Proceeds from stock option exercises and other | ||||||||
Principal payment of finance leases and obligations | ( | ( | ||||||
Net cash used in financing activities | ( | ( | ||||||
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH | ( | |||||||
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — Beginning of period | ||||||||
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — End of period | $ | $ | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Interest paid | $ | $ | ||||||
Income taxes paid | $ | $ | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | ||||||
Cash paid for amounts included in the measurement of finance lease liabilities | $ | $ | ||||||
NONCASH DISCLOSURES: | ||||||||
Capital expenditures included in accounts payable and accrued liabilities | $ | $ | ||||||
Lease assets obtained in exchange for operating lease liabilities | $ | $ | ||||||
Contingent consideration liabilities recognized at acquisition date | $ | $ | ||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Cash and equivalents | $ | $ | ||||||
Cash and equivalents segregated under federal or other regulations | ||||||||
Restricted cash | ||||||||
Total cash and equivalents, cash and equivalents segregated under federal or other regulations and restricted cash shown in the statements of cash flows | $ | $ | ||||||
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Commission revenue | ||||||||
Annuities | $ | $ | ||||||
Mutual funds | ||||||||
Fixed income | ||||||||
Equities | ||||||||
Other | ||||||||
Total commission revenue | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Commission revenue | ||||||||
Sales-based | ||||||||
Annuities | $ | $ | ||||||
Fixed income | ||||||||
Mutual funds | ||||||||
Equities | ||||||||
Other | ||||||||
Total sales-based revenue | $ | $ | ||||||
Trailing | ||||||||
Annuities | $ | $ | ||||||
Mutual funds | ||||||||
Other | ||||||||
Total trailing revenue | $ | $ | ||||||
Total commission revenue | $ | $ |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Asset-based revenue | ||||||||
Client cash | $ | $ | ||||||
Sponsorship programs | ||||||||
Recordkeeping | ||||||||
Total asset-based revenue | $ | $ |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Service and fee revenue | ||||||||
Over time(1) | $ | $ | ||||||
Point-in-time(2) | ||||||||
Total service and fee revenue | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||
March 31, 2024 | December 31, 2023 | Type | Valuation Techniques | Unobservable Inputs | Range | ||||||||||||
$ | $ | Contingent Consideration | Monte-Carlo Simulation Model | Forecasted Growth Rates | |||||||||||||
Discount Rate | |||||||||||||||||
Contingent Consideration | Discounted Cash Flow Model | Discount Rate | |||||||||||||||
$ | $ |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Balance - Beginning of period | $ | $ | ||||||
Additions | ||||||||
Payments | ( | |||||||
Fair value adjustments | ||||||||
Balance - End of period | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets | ||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Cash equivalents segregated under federal or other regulations | ||||||||||||||
Restricted cash | ||||||||||||||
Investment securities — trading: | ||||||||||||||
U.S. treasury obligations | ||||||||||||||
Mutual funds | ||||||||||||||
Equity securities | ||||||||||||||
Money market funds | ||||||||||||||
Debt securities | ||||||||||||||
Total investment securities — trading | ||||||||||||||
Other assets: | ||||||||||||||
Deferred compensation plan | ||||||||||||||
Fractional shares — investment(1) | ||||||||||||||
Other investments | ||||||||||||||
Total other assets: | ||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Other liabilities: | ||||||||||||||
Securities sold, but not yet purchased: | ||||||||||||||
Equity securities | $ | $ | $ | $ | ||||||||||
U.S. treasury obligations | ||||||||||||||
Total securities sold, but not yet purchased | ||||||||||||||
Fractional shares — repurchase obligation(1) | ||||||||||||||
Contingent consideration | ||||||||||||||
Total other liabilities | ||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
December 31, 2023 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets | ||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Cash equivalents segregated under federal or other regulations | ||||||||||||||
Restricted cash | ||||||||||||||
Investment securities — trading: | ||||||||||||||
Mutual funds | ||||||||||||||
U.S. treasury obligations | ||||||||||||||
Money market funds | ||||||||||||||
Equity securities | ||||||||||||||
Debt securities | ||||||||||||||
Total investment securities — trading | ||||||||||||||
Other assets: | ||||||||||||||
Deferred compensation plan | ||||||||||||||
Fractional shares — investment(1) | ||||||||||||||
Other investments | ||||||||||||||
Total other assets | ||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Other liabilities: | ||||||||||||||
Securities sold, but not yet purchased: | ||||||||||||||
Equity securities | $ | $ | $ | $ | ||||||||||
Mutual funds | ||||||||||||||
Total securities sold, but not yet purchased | ||||||||||||||
Fractional shares — repurchase obligation(1) | ||||||||||||||
Contingent consideration | ||||||||||||||
Total other liabilities | ||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash | $ | $ | $ | $ | $ | ||||||||||||
Cash segregated under federal or other regulations | |||||||||||||||||
Restricted cash | |||||||||||||||||
Receivables from clients, net | |||||||||||||||||
Receivables from brokers, dealers and clearing organizations | |||||||||||||||||
Advisor repayable loans, net(1) | |||||||||||||||||
Other receivables, net | |||||||||||||||||
Investment securities — held-to-maturity securities | |||||||||||||||||
Other assets: | |||||||||||||||||
Securities borrowed | |||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||
Other investments(3) | |||||||||||||||||
Total other assets | |||||||||||||||||
Liabilities | |||||||||||||||||
Client payables | $ | $ | $ | $ | $ | ||||||||||||
Payables to brokers, dealers and clearing organizations | |||||||||||||||||
Corporate debt and other borrowings, net |
December 31, 2023 | Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash | $ | $ | $ | $ | $ | ||||||||||||
Cash segregated under federal or other regulations | |||||||||||||||||
Restricted cash | |||||||||||||||||
Receivables from clients, net | |||||||||||||||||
Receivables from brokers, dealers and clearing organizations | |||||||||||||||||
Advisor repayable loans, net(1) | |||||||||||||||||
Other receivables, net | |||||||||||||||||
Investment securities - held-to-maturity securities | |||||||||||||||||
Other assets: | |||||||||||||||||
Securities borrowed | |||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||
Other investments(3) | |||||||||||||||||
Total other assets | |||||||||||||||||
Liabilities | |||||||||||||||||
Client payables | $ | $ | $ | $ | $ | ||||||||||||
Payables to brokers, dealers and clearing organizations | |||||||||||||||||
Corporate debt and other borrowings, net |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | December 31, 2023 | |||||||
Trading securities — at fair value: | ||||||||
U.S. treasury obligations | $ | $ | ||||||
Mutual funds | ||||||||
Equity securities | ||||||||
Money market funds | ||||||||
Debt securities | ||||||||
Total trading securities | $ | $ | ||||||
Held-to-maturity securities — at amortized cost: | ||||||||
U.S. government notes | $ | $ | ||||||
Total held-to-maturity securities | $ | $ | ||||||
Total investment securities | $ | $ |
Within one year | After one but within five years | After five but within ten years | After ten years | Total | |||||||||||||
U.S. government notes — at amortized cost | $ | $ | $ | $ | $ | ||||||||||||
U.S. government notes — at fair value | $ | $ | $ | $ | $ |
Balance at December 31, 2022 | $ | ||||
Goodwill acquired | |||||
Balance at December 31, 2023 | |||||
Purchase accounting adjustments | ( | ||||
Goodwill acquired | |||||
Balance at March 31, 2024 | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Weighted-Average Life Remaining (in years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||
Definite-lived intangibles, net(1): | ||||||||||||||
Advisor and institution relationships | $ | $ | ( | $ | ||||||||||
Product sponsor relationships | ( | |||||||||||||
Client relationships | ( | |||||||||||||
Technology | ( | |||||||||||||
Total definite-lived intangible assets, net | $ | $ | ( | $ | ||||||||||
Other indefinite-lived intangibles: | ||||||||||||||
Trademark and trade name | ||||||||||||||
Total other intangibles, net | $ |
Weighted-Average Life Remaining (in years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||
Definite-lived intangibles, net(1): | ||||||||||||||
Advisor and institution relationships | $ | $ | ( | $ | ||||||||||
Product sponsor relationships | ( | |||||||||||||
Client relationships | ( | |||||||||||||
Technology | ( | |||||||||||||
Total definite-lived intangibles, net | $ | $ | ( | $ | ||||||||||
Other indefinite-lived intangibles: | ||||||||||||||
Trademark and trade name | ||||||||||||||
Total other intangibles, net | $ |
2024 - remainder | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | December 31, 2023 | |||||||
Other assets: | ||||||||
Deferred compensation | $ | $ | ||||||
Prepaid assets | ||||||||
Fractional shares — investment(1) | ||||||||
Deferred tax assets, net | ||||||||
Debt issuance costs, net | ||||||||
Other | ||||||||
Total other assets | $ | $ | ||||||
Other liabilities: | ||||||||
Deferred compensation | $ | $ | ||||||
Unearned revenue(2) | ||||||||
Fractional shares — repurchase obligation(1) | ||||||||
Taxes payable | ||||||||
Contingent consideration | ||||||||
Other | ||||||||
Total other liabilities | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Corporate Debt | Balance | Applicable Margin | Interest Rate | Balance | Applicable Margin | Interest rate | Maturity | ||||||||||||||||
Term Loan B(1) | $ | SOFR+ | % | $ | SOFR+ | % | 11/12/2026 | ||||||||||||||||
2027 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 11/15/2027 | ||||||||||||||||||
2028 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 11/17/2028 | ||||||||||||||||||
2029 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 3/15/2029 | ||||||||||||||||||
2031 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 5/15/2031 | ||||||||||||||||||
Total Corporate Debt | |||||||||||||||||||||||
Less: Unamortized Debt Issuance Cost | ( | ( | |||||||||||||||||||||
Corporate debt, net | $ | $ | |||||||||||||||||||||
Other Borrowings | |||||||||||||||||||||||
Revolving Credit Facility(2) | ABR+ | % | ABR+ | % | 3/15/2026 | ||||||||||||||||||
Total other borrowings | $ | $ | |||||||||||||||||||||
Corporate Debt and Other Borrowings, Net | $ | $ |
Description | Borrower | Maturity Date | Outstanding | Available | ||||||||||
Senior secured, revolving credit facility | LPL Holdings, Inc. | March 2026 | $ | $ | ||||||||||
Broker-dealer revolving credit facility | LPL Financial LLC | July 2024 | $ | $ | ||||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | None | $ | $ | ||||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2024 | $ | $ | ||||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | March 2025 | $ | $ | ||||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | unspecified | ||||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | unspecified |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Beginning balance — January 1 | $ | $ | ||||||
Losses incurred | ||||||||
Losses paid | ( | ( | ||||||
Ending balance — March 31 | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
2024 | 2023 | |||||||||||||
Dividend per Share | Total Cash Dividend | Dividend per Share | Total Cash Dividend | |||||||||||
First quarter | $ | $ | $ | $ | ||||||||||
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Number of Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In thousands) | |||||||||||
Outstanding — December 31, 2023 | $ | |||||||||||||
Granted | $ | |||||||||||||
Exercised | ( | $ | ||||||||||||
Forfeited and Expired | $ | |||||||||||||
Outstanding — March 31, 2024 | $ | $ | ||||||||||||
Exercisable — March 31, 2024 | $ | $ | ||||||||||||
Exercisable and expected to vest — March 31, 2024 | $ | $ |
Outstanding | Exercisable | ||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Life (Years) | Number of Shares | Weighted- Average Exercise Price | ||||||||||||
$19.85 - $25.00 | $ | $ | |||||||||||||||
$25.01 - $35.00 | $ | $ | |||||||||||||||
$35.01 - $45.00 | $ | $ | |||||||||||||||
$45.01 - $65.00 | $ | $ | |||||||||||||||
$65.01 - $75.00 | $ | $ | |||||||||||||||
$75.01 - $80.00 | $ | $ | |||||||||||||||
$ | $ |
Restricted Stock Awards | Stock Units | ||||||||||||||||
Number of Shares | Weighted-Average Grant-Date Fair Value | Number of Units | Weighted-Average Grant-Date Fair Value | ||||||||||||||
Outstanding — December 31, 2023 | $ | $ | |||||||||||||||
Granted | $ | $ | |||||||||||||||
Vested | $ | ( | $ | ||||||||||||||
Forfeited | $ | ( | $ | ||||||||||||||
Outstanding — March 31, 2024 | $ | (1) | $ | ||||||||||||||
Expected to vest — March 31, 2024 | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Net income | $ | $ | ||||||
Basic weighted-average number of shares outstanding | ||||||||
Dilutive common share equivalents | ||||||||
Diluted weighted-average number of shares outstanding | ||||||||
Basic earnings per share | $ | $ | ||||||
Diluted earnings per share | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
March 31, 2024 | |||||
LPL Financial LLC | |||||
Net capital | $ | ||||
Less: required net capital | |||||
Excess net capital | $ |
Outstanding Balance at March 31, 2024 | Annual Impact of an Interest Rate(†) Increase of | ||||||||||||||||
10 Basis | 25 Basis | 50 Basis | 100 Basis | ||||||||||||||
Corporate Debt and Other Borrowings | Points | Points | Points | Points | |||||||||||||
Term Loan B | $ | 1,024,525 | $ | 1,021 | $ | 2,551 | $ | 5,103 | $ | 10,205 | |||||||
Revolving Credit Facility | 401,000 | 401 | 1,003 | 2,005 | 4,010 | ||||||||||||
Variable Rate Debt Outstanding | $ | 1,425,525 | $ | 1,422 | $ | 3,554 | $ | 7,108 | $ | 14,215 |
Period | Total Number of Shares Purchased | Weighted-Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (millions)(1) | ||||||||||
January 1, 2024 through January 31, 2024 | 296,145 | $ | 236.39 | 296,145 | $ | 830.0 | ||||||||
February 1, 2024 through February 29, 2024 | — | $ | — | — | $ | 830.0 | ||||||||
March 1, 2024 through March 31, 2024 | — | $ | — | — | $ | 830.0 | ||||||||
Total | 296,145 | 296,145 |
Officer | Date of Plan Adoption | Commencement of Trading Period | Termination of Trading Period(1) | Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule 10b5-1 Trading Arrangements | Purchase or Sale | ||||||||||||
June 14, 2024 | September 12, 2024 | Sale | |||||||||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
22.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition* | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. | |||||||
** | Furnished herewith. |
LPL Financial Holdings Inc. | |||||||||||
Date: | May 2, 2024 | By: | /s/ DAN H. ARNOLD | ||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer | |||||||||||
Date: | May 2, 2024 | By: | /s/ MATTHEW J. AUDETTE | ||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer and Head of Business Operations | |||||||||||
/s/ Dan H. Arnold | |||||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer (principal executive officer) |
/s/ Matthew J. Audette | |||||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer and Head of Business Operations (principal financial officer) |
/s/ Dan H. Arnold | |||||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer |
/s/ Matthew J. Audette | |||||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer and Head of Business Operations |
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 130,704,541 | 130,233,328 |
Treasury stock, shares | 55,998,999 | 55,576,970 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.30 | $ 0.30 |
Condensed Consolidated Statements of Cash Flows (Unaudited) cash, cash equivalent and restricted cash reconciliation - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 1,102,270 | $ 465,671 | $ 469,785 | |
Cash segregated under federal and other regulations | 1,610,996 | 2,007,312 | 1,807,283 | |
Restricted cash | 114,006 | 108,180 | 105,587 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 2,827,272 | $ 2,581,163 | $ 2,382,655 | $ 3,137,270 |
Organization and Description of the Company |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Company | ORGANIZATION AND DESCRIPTION OF THE COMPANY LPL Financial Holdings Inc. (“LPLFH”), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “Company”), provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions (collectively, “advisors”) in the United States. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer personalized financial advice and brokerage services to retail investors (their “clients”). The Company’s most significant, wholly owned subsidiaries are described below: •LPL Holdings, Inc. (“LPLH” or “Parent”) is an intermediate holding company and directly or indirectly owns 100% of the issued and outstanding common equity interests of all of LPLFH’s indirect subsidiaries, including a captive insurance subsidiary that underwrites insurance for various legal and regulatory risks of the Company. •LPL Financial LLC (“LPL Financial”), with primary offices in San Diego, California; Fort Mill, South Carolina; Boston, Massachusetts; and Austin, Texas is a clearing broker-dealer and an investment advisor that principally transacts business for its advisors and institutions on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands. •LPL Insurance Associates, Inc. operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors. •AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC (“Blaze”). AdvisoryWorld offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. Blaze provides an advisor-facing trading and portfolio rebalancing platform. •PTC Holdings, Inc. (“PTCH”) is a holding company for The Private Trust Company, N.A. (“PTC”). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight and custodial services for estates and families. PTC, together with its affiliate Fiduciary Trust Company of New Hampshire, also provides Individual Retirement Account (“IRA”) custodial services for LPL Financial. •LPL Employee Services, LLC and its subsidiary, Allen & Company of Florida, LLC, along with their affiliate Financial Resources Group Investment Services, LLC (“FRGIS”), provide primary support for the Company’s employee advisor affiliation model.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, acquisitions, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”). Recently Issued or Adopted Accounting Pronouncements There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the three months ended March 31, 2024 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
|
Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | REVENUE Commission The following table presents total commission revenue disaggregated by product category (in thousands):
The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
Asset-Based The following table sets forth asset-based revenue disaggregated by product category (in thousands):
Service and Fee The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
_______________________________ (1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and technology fees. (2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, account fees, and confirmation fees. Unearned Revenue The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. Unearned revenue increased from $156.2 million as of December 31, 2023 to $206.7 million as of March 31, 2024. The increase in unearned revenue for the three months ended March 31, 2024 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, partially offset by $154.2 million of revenue recognized during the three months ended March 31, 2024 that was included in the unearned revenue balance as of December 31, 2023. The Company receives cash in advance for advisory services to be performed and conferences to be held in future periods. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held.
|
Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisitions in the Current Period Entered into a definitive purchase agreement to acquire Atria Wealth Solutions, Inc (“Atria”) On February 13, 2024, the Company announced that it had entered into a definitive purchase agreement to acquire Atria, a wealth management solutions holding company headquartered in New York. As part of the agreement, Atria will transition its brokerage and advisory assets to the Company’s platform. The Company expects to close the transaction in the second half of 2024 for an initial purchase price of approximately $805 million and potential contingent consideration of up to $230 million based on future retention. The closing and the conversion, which is expected to be completed in mid-2025, are both subject to receipt of regulatory approval and other closing conditions. Other Acquisitions During the three months ended March 31, 2024, the Company completed two acquisitions under the Liquidity & Succession solution, in which the Company buys advisor practices. Total consideration for these transactions, which were accounted for under the acquisition method of accounting for business combinations, was $22.0 million, which included $9.5 million of cash, and liabilities of $12.5 million for contingent consideration, which represents the acquisition date fair value of the additional cash consideration that may be transferred to the sellers if certain asset growth is achieved in the to seven years following the closing. This contingent consideration may be settled for amounts up to $84.3 million in the years following the closing. At March 31, 2024, the Company provisionally allocated $3.9 million of the purchase price to goodwill and $18.1 million to client relationships acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. The client relationships were valued using the income approach and assigned useful lives of 14 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information. Acquisitions Completed in Prior Periods Acquisition of Financial Resources Group Investment Services, LLC On January 31, 2023, the Company acquired Financial Resources Group Investment Services, LLC, a broker-dealer and independent branch office, in order to expand its addressable markets and complement organic growth. The Company accounted for the acquisition under the acquisition method of accounting for business combinations, and total consideration for the transaction was $189.2 million, which included an initial cash payment of $143.8 million and a liability of $45.4 million for contingent consideration. The Company allocated $129.7 million of the purchase price to goodwill, $53.5 million to definite-lived intangible assets, $9.0 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. See Note 7 – Goodwill and Other Intangibles, Net, for additional information. Other Acquisitions During the year ended December 31, 2023, the Company completed a total of 19 acquisitions under the Liquidity & Succession solution. The Company also completed the acquisition of Boenning & Scattergood’s Private Client Group on January 31, 2023. Certain of these acquisitions have been accounted for as business combinations and certain have been accounted for as asset acquisitions. Business Combinations The Company accounted for five Liquidity & Succession transactions under the acquisition method of accounting for business combinations during the year ended December 31, 2023. Total consideration for these transactions was $190.2 million, which included initial consideration of $147.4 million, including $140.3 million of cash and a liability of $42.7 million for contingent consideration. At December 31, 2023, the Company allocated $84.5 million of the purchase price to goodwill and $105.7 million to the definite-lived intangible assets acquired as part of these acquisitions. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. The Company recorded purchase accounting adjustments during the three months ended March 31, 2024 related to acquisitions which were completed during the fourth quarter of 2023 and for which the Company’s purchase accounting analysis is ongoing. These adjustments resulted in a $39.6 million increase in customer relationships, a $7.4 million increase in liabilities for contingent consideration, a $12.6 million decrease in technology, and a $19.6 million decrease in goodwill. At March 31, 2024, the Company has provisionally allocated $42.7 million of the purchase price to goodwill and $64.5 million to definite-lived intangible assets acquired. The intangible assets are comprised primarily of client relationships which were assigned useful lives of 15 years. See Note 7 – Goodwill and Other Intangibles, Net, for additional information. Asset Acquisitions The Company accounted for fifteen other acquisitions as asset acquisitions during the year ended December 31, 2023. These transactions included initial consideration of $180.4 million, including $142.3 million of which was allocated to client relationships and $38.1 million of which was allocated to advisor relationships. These transactions include potential contingent payments of up to $73.1 million in the three years following the closing if certain asset growth is achieved. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 - Goodwill and Other Intangibles, Net, for additional information.
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There have been no transfers of assets or liabilities between these fair value measurement classifications during the three months ended March 31, 2024 or 2023. The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of inputs used to determine the fair value at the measurement date. At March 31, 2024 and December 31, 2023, the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis: Cash Equivalents — The Company’s cash equivalents include money market funds and U.S. government obligations, which are short term in nature with readily determinable values derived from active markets. Cash Equivalents Segregated Under Federal or Other Regulations — The Company’s cash equivalents segregated under federal or other regulations include U.S. treasury bills, which are short term in nature with readily determinable values derived from active markets. Trading Securities and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated when security prices move beyond a certain deviation threshold using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For negotiable certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At March 31, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services. Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in life insurance, money market and other mutual funds, which are actively traded and valued based on quoted market prices; and (2) certain non-traded real estate investment trusts, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data. Fractional Shares — The Company’s investment in fractional shares held by customers is reflected in other assets while the related purchase obligation for such shares is reflected in other liabilities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its investment in fractional shares held by customers and the related repurchase obligation. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. At March 31, 2024 and December 31, 2023, the Company did not adjust prices received from the independent third-party pricing services. Contingent Consideration — The Company measures contingent consideration liabilities at fair value at the acquisition date, as applicable, and thereafter on a recurring basis using unobservable (Level 3) inputs. These contingent consideration liabilities are reflected in other liabilities. See Note 4 - Acquisitions for additional information. Level 3 Recurring Fair Value Measurements The Company determines the fair value for its contingent consideration obligations using Monte Carlo simulation and discounted cash flows models. Contingent payments are estimated by applying significant unobservable inputs, including forecasted growth rates applied to project future revenue or asset growth and discount rates which are based on the cost of debt and equity. These projections are measured against the performance targets specified in each respective acquisition agreement, which may include growth in assets under management, net new assets, asset conversion or retention, or revenue growth. Significant increases or decreases in the Company’s forecasted growth rates over the measurement period or discount rates would result in a higher or lower fair value measurement. The following table summarizes inputs used in the measurement of contingent consideration (dollars in thousands):
The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):
Recurring Fair Value Measurements The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”). The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. Fair Value of Financial Instruments Not Measured at Fair Value The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2)Includes cash balances awaiting investment or distribution to plan participants. (3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
|
Investment Securities |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The Company’s investment securities include debt and equity securities that the Company has classified as trading securities, which are carried at fair value, as well as investments in U.S. government notes, which are held by The Private Trust Company, N.A. to satisfy minimum capital requirements of the OCC. These securities are recorded at amortized cost and classified as held-to-maturity as the Company has both the intent and ability to hold these investments to maturity. The following table summarizes investment securities (in thousands):
At March 31, 2024, the held-to-maturity securities were scheduled to mature as follows (in thousands):
|
Goodwill and Other Intangible Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLES, NET A summary of the activity impacting goodwill is presented below (in thousands):
The Company completed various acquisitions, which were accounted for under the acquisition method of accounting for business combinations and as asset acquisitions, and recorded purchase accounting adjustments during the periods presented. See Note 4 - Acquisitions, for additional information. The components of other intangibles, net were as follows at March 31, 2024 (in thousands):
_______________________________ (1)During the three months ended March 31, 2024, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information. The components of other intangibles, net were as follows at December 31, 2023 (in thousands):
_______________________________ (1) During the year ended December 31, 2023, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information. Total amortization of other intangibles was $29.6 million and $24.1 million for the three months ended March 31, 2024 and 2023, respectively. Future amortization is estimated as follows (in thousands):
|
Other Assert and Other Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets And Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Other Liabilities | OTHER ASSETS AND OTHER LIABILITIES The components of other assets and other liabilities were as follows (dollars in thousands):
_______________________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program. (2)See Note 3 - Revenue for further information.
|
Corporate Debt and Other Borrowings, Net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt and Other Borrowings, Net | CORPORATE DEBT AND OTHER BORROWINGS, NET The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
_______________________________ (1)No leverage or interest coverage maintenance covenants. (2)The Parent’s outstanding balance at March 31, 2024 was comprised of an alternate base rate (“ABR”)-based balance of $10.0 million with the applicable margin of ABR + 37.5 bps (8.875%) and a SOFR-based balance of $391.0 million with the applicable margin of SOFR + 147.5 bps (6.800%). The following table presents amounts outstanding and available under the Company’s external lines of credit at March 31, 2024 (in millions):
Issuance of 2028 Senior Notes LPLH issued $750.0 million in aggregate principal amount of 6.750% senior notes on November 17, 2023 at 99.929% (“2028 Senior Notes”). The 2028 Senior Notes are unsecured obligations that will mature on November 17, 2028, and are fully and unconditionally guaranteed on a senior unsecured basis by LPLFH. The Company used the proceeds from the issuance to repay borrowings made under its senior secured revolving credit facility and for general corporate purposes. In connection with the issuance of the 2028 Senior Notes, the Company incurred $6.3 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. Credit Agreement On March 13, 2023, LPLFH and LPLH entered into a sixth amendment agreement to the Company’s amended and restated credit agreement (the “Credit Agreement”), which, among other things, replaced LIBOR with SOFR. The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of March 31, 2024, the Company was in compliance with such covenants. Parent Revolving Credit Facility On July 18, 2023, LPLH amended its revolving credit facility to, among other things, increase the maximum borrowing from $1.0 billion to $2.0 billion. Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 112.5 to 187.5 basis points over SOFR plus 10 basis points or 12.5 to 87.5 basis points over the alternate base rate (the greatest of (i) the NYFRB Rate plus 1/2 of 1%, (ii) the Prime Rate and (iii) the Adjusted Term SOFR Rate for a one month Interest Period plus 1%, each as defined in the Credit Agreement) depending on the Debt Ratings (as defined in the Credit Agreement). In connection with the amendment of the credit facility, LPLH incurred $5.5 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. Broker-Dealer Revolving Credit Facility On July 18, 2023, LPL Financial, the Company’s broker-dealer subsidiary, renewed its committed senior unsecured revolving credit facility that matures on July 16, 2024 and allows for a maximum borrowing of up to $1.0 billion. Borrowings under the credit facility bear interest at a rate per annum equal to 1.25% per annum plus the greatest of (i) SOFR plus 0.10%, (ii) the effective federal funds rate and (iii) the overnight bank funding rate, in each case, as such rate is administered or determined by the Federal Reserve Bank of New York from time to time. In connection with the renewal of the credit facility, LPL Financial incurred $1.7 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. The broker-dealer credit agreement subjects LPL Financial to certain financial and non-financial covenants. LPL Financial was in compliance with such covenants as of March 31, 2024. Other External Lines of Credit LPL Financial maintained five uncommitted lines of credit as of March 31, 2024. Two of the lines have unspecified limits, which are primarily dependent on LPL Financial’s ability to provide sufficient collateral. The other three lines have a total limit of $200.0 million, which allow for uncollateralized borrowings. There were no balances outstanding under these lines at March 31, 2024 or December 31, 2023.
|
Commitments and Contingencies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Service and Development Contracts The Company is party to certain long-term contracts for systems and services that enable back-office trade processing and clearing for its product and service offerings. Guarantees The Company occasionally enters into contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts. LPL Financial provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions. Loan Commitments From time to time, LPL Financial makes loans to advisors and institutions, primarily to newly recruited advisors and institutions to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor or institution joining LPL Financial. LPL Financial had no significant unfunded loan commitments at March 31, 2024 or December 31, 2023. Legal and Regulatory Matters The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its condensed consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company’s assessment process considers a variety of factors and assumptions, which may include: the procedural status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; or the potential opportunities for settlement and the status of any settlement discussions. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated. In October 2022, the Company received a request for information from the SEC in connection with an investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices or messaging platforms that have not been approved by the Company. In 2023, the SEC proposed a potential settlement, under which the Company would pay a $50.0 million civil monetary penalty. As a result, the Company recorded $40.0 million in other expense in the consolidated statements of income for the year ended December 31, 2023 to reflect the amount of the penalty that is not covered by the Company’s captive insurance subsidiary. On March 22, 2024, the Company reached a settlement in principle with the staff of the SEC to resolve its civil investigation. The Company expects to pay the civil monetary penalty of $50.0 million during the second quarter of 2024. The settlement in principle remains subject to the negotiation of definitive documentation and approval by the SEC. Third-Party Insurance The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies. Self-Insurance The Company has self-insurance for certain potential liabilities through its captive insurance subsidiary. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and actuarial assumptions and estimates. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. Self-insurance liabilities are included in accounts payable and accrued liabilities in the condensed consolidated statements of financial condition. Self-insurance related charges are included in other expense in the condensed consolidated statements of income. The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
Other Commitments As of March 31, 2024, the Company had approximately $484.9 million of client margin loans that were collateralized with securities having a fair value of approximately $678.9 million that LPL Financial can repledge, loan or sell. Of these securities, approximately $357.2 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of March 31, 2024, there were no restrictions that materially limited the Company’s ability to repledge, loan or sell the remaining $321.7 million of client collateral. Investment securities on the condensed consolidated statements of financial condition include $8.4 million and $5.5 million of trading securities pledged to the Options Clearing Corporation at March 31, 2024 and December 31, 2023, respectively, and $19.7 million and $19.9 million of trading securities pledged to the National Securities Clearing Corporation at March 31, 2024 and December 31, 2023, respectively.
|
Stockholders' Equity |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY Dividends The payment, timing and amount of any dividends are subject to approval by the Company’s Board of Directors (the “Board”) as well as certain limits under the Credit Agreement. Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
Share Repurchases The Company engages in a share repurchase program that was approved by the Board, pursuant to which LPLFH may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the condensed consolidated statements of financial condition. During the three months ended March 31, 2024 LPLFH repurchased 296,145 shares of common stock at a weighted-average price of $236.39 for a total of $70.0 million. As of March 31, 2024, the Company had $830.0 million remaining under the existing share repurchase program. As a result of our planned acquisition of Atria, the Company paused share repurchases during the quarter. Future share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Credit Agreement and the Company’s general working capital needs.
|
Share-Based Compensation |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | SHARE-BASED COMPENSATION In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable. There were 17,754,197 shares authorized for grant under the 2021 Plan and 11,656,366 shares remaining available for future issuance at March 31, 2024. Stock Options and Warrants The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the three months ended March 31, 2024:
The following table summarizes information about outstanding stock options and warrants as of March 31, 2024:
The Company recognized no share-based compensation expense related to the vesting of stock options awarded to employees and officers during the three months ended March 31, 2024 and 2023. As of March 31, 2024, there was no unrecognized compensation cost related to non-vested stock options. Restricted Stock and Stock Units The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the three months ended March 31, 2024:
_______________________________ (1) Includes 90,412 vested and undistributed deferred stock units. The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $20.3 million and $16.2 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, total unrecognized compensation cost for restricted stock awards and stock units was $138.4 million, which is expected to be recognized over a weighted-average remaining period of 2.23 years. The Company also grants restricted stock units to its advisors and to institutions. The Company recognized share-based compensation expense of $0.7 million related to the vesting of these awards during both the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, total unrecognized compensation cost for restricted stock units granted to advisors and institutions was $4.5 million, which is expected to be recognized over a weighted-average remaining period of 1.98 years.
|
Earnings per Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
The computation of diluted earnings per share excludes stock options, warrants and stock units that are anti-dilutive. For the three months ended March 31, 2024 and 2023, stock options, warrants and stock units representing common share equivalents of 162,078 shares and 75,416 shares, respectively, were anti-dilutive.
|
Net Capital and Regulatory Requirements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Broker-Dealer [Abstract] | |||||||||||||||||||||||||||||||||||||
Net Capital and Regulatory Requirements | NET CAPITAL AND REGULATORY REQUIREMENTS The Company’s broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act of 1934, as amended), which requires the maintenance of minimum net capital. The net capital rules also provide that a broker-dealer’s capital may not be withdrawn if the resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and the Financial Industry Regulatory Authority (“FINRA”) to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis. The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
The Company’s subsidiary, PTC, also operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations. As of March 31, 2024, LPL Financial and PTC met all capital adequacy requirements to which they were subject.
|
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK AND CONCENTRATIONS OF CREDIT RISK LPL Financial may offer loans to new and existing advisors and institutions to facilitate their relationship with LPL Financial, transition to LPL Financial’s platform or fund business development activities. LPL Financial may incur losses if advisors or institutions do not fulfill their obligations with respect to these loans. To mitigate this risk, LPL Financial evaluates the performance and creditworthiness of the advisor or institution prior to offering repayable loans. LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor’s client, subject to various regulatory and internal margin requirements, which is collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary. LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors’ clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when-issued securities. When-issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order. LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the condensed consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial.
|
Subsequent Events |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Board declared a cash dividend of $0.30 per share on LPLFH’s outstanding common stock to be paid on June 4, 2024 to all stockholders of record on May 21, 2024.
|
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Pay vs Performance Disclosure | ||
Net income | $ 288,764 | $ 338,884 |
Insider Trading Arrangements |
3 Months Ended |
---|---|
Mar. 31, 2024
shares
| |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Dan Arnold [Member] | |
Trading Arrangements, by Individual | |
Arrangement Duration | 90 days |
Officer Trading Arrangement [Member] | |
Trading Arrangements, by Individual | |
Title | Dan Arnold, President and Chief Executive Officer |
Officer Trading Arrangement [Member] | Dan Arnold [Member] | |
Trading Arrangements, by Individual | |
Name | Dan Arnold, President and Chief Executive Officer |
Adoption Date | March 13, 2024 |
Aggregate Available | 20,000 |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, acquisitions, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2023, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”).
|
Recently Issued & Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the three months ended March 31, 2024 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
|
Revenue (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Reporting Category [Table Text Block] | The following table presents total commission revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Reporting Category & Timing of Transfer of Good or Service [Table Text Block] | The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Product and Service [Table Text Block] | The following table sets forth asset-based revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Timing of Transfer of Good or Service [Table Text Block] | The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
_______________________________ (1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and technology fees. (2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, account fees, and confirmation fees.
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure, Measurement of Contingent Consideration Using Monte-Carlo Simulation Model | The following table summarizes inputs used in the measurement of contingent consideration (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in fair value for the Company’s Level 3 liabilities during the periods presented (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”). The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2)Includes cash balances awaiting investment or distribution to plan participants. (3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
|
Investment Securities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Trading, and Equity Securities, FV-NI | The following table summarizes investment securities (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of securities held-to-maturity | At March 31, 2024, the held-to-maturity securities were scheduled to mature as follows (in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in goodwill | A summary of the activity impacting goodwill is presented below (in thousands):
The Company completed various acquisitions, which were accounted for under the acquisition method of accounting for business combinations and as asset acquisitions, and recorded purchase accounting adjustments during the periods presented. See Note 4 - Acquisitions, for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of intangible assets | The components of other intangibles, net were as follows at March 31, 2024 (in thousands):
_______________________________ (1)During the three months ended March 31, 2024, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information. The components of other intangibles, net were as follows at December 31, 2023 (in thousands):
_______________________________ (1) During the year ended December 31, 2023, the Company completed various acquisitions. See Note 4 - Acquisitions, for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense | Future amortization is estimated as follows (in thousands):
|
Other Assert and Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets And Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other assets and other liabilities | The components of other assets and other liabilities were as follows (dollars in thousands):
_______________________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program. (2)See Note 3 - Revenue for further information.
|
Corporate Debt and Other Borrowings, Net (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term and Other Borrowings | The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
_______________________________ (1)No leverage or interest coverage maintenance covenants. (2)The Parent’s outstanding balance at March 31, 2024 was comprised of an alternate base rate (“ABR”)-based balance of $10.0 million with the applicable margin of ABR + 37.5 bps (8.875%) and a SOFR-based balance of $391.0 million with the applicable margin of SOFR + 147.5 bps (6.800%). The following table presents amounts outstanding and available under the Company’s external lines of credit at March 31, 2024 (in millions):
|
Commitment and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Guarantee Insurance Contracts, Claim Liability | The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
|
Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock option and warrant activity | The following table summarizes the Company’s stock option and warrant activity as of and for the three months ended March 31, 2024:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding stock options and warrant information | The following table summarizes information about outstanding stock options and warrants as of March 31, 2024:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock awards and restricted stock units activity | The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the three months ended March 31, 2024:
_______________________________ (1) Includes 90,412 vested and undistributed deferred stock units.
|
Earnings per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share computations | The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
|
Net Capital and Regulatory Requirements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Broker-Dealer [Abstract] | |||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation | The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
|
Organization and Description of the Company Consolidation, Parent Ownership Interest (Details) - LPL Financial LLC |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership Interest Percentage In Subsidiary | 100.00% |
Number of States in which Entity Operates | 50 |
Revenue - Asset-based Revenue disaggregated by Product and Service (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Asset Based Fees | $ 600,721 | $ 621,748 |
Client cash | ||
Disaggregation of Revenue [Line Items] | ||
Asset Based Fees | 352,382 | 418,275 |
Sponsorship Programs [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Asset Based Fees | 134,101 | 102,470 |
Recordkeeping Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Asset Based Fees | $ 114,238 | $ 101,003 |
Revenue - Commission Revenue Disaggregated by Product Category (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Commission | $ 746,446 | $ 603,725 |
Annuities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Commission | 436,473 | 344,061 |
Mutual Funds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Commission | 186,540 | 165,038 |
Fixed Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Commission | 48,641 | 35,267 |
Equities [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Commission | 35,451 | 25,890 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Commission | $ 39,341 | $ 33,469 |
Revenue - Transaction and Fee Revenue Disaggregated by Timing of Transfer of Good or Service (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Service and fee | $ 132,172 | $ 118,987 |
Point-in-time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service and fee | 29,636 | 25,958 |
Over time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service and fee | $ 102,536 | $ 93,029 |
Revenue - Unearned Revenue Recognized (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Unearned Revenue [Abstract] | ||
Contract with Customer, Liability | $ 206.7 | $ 156.2 |
Deferred Revenue, Revenue Recognized | $ 154.2 |
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - Beginning of period | $ 118,844 | $ 3,860 |
Additions | 19,918 | 41,334 |
Payments | (51,500) | 0 |
Fair value adjustments | 0 | 86 |
Balance - End of period | $ 87,262 | $ 45,280 |
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,856,648 | $ 1,642,468 |
Goodwill acquired | 3,951 | 214,180 |
Purchase accounting adjustments | (19,627) | |
Goodwill, ending balance | $ 1,840,972 | $ 1,856,648 |
Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Future amortization expense | ||
Remainder of Fiscal Year | $ 85,475 | |
Due Year One | 104,686 | |
Due Year Two | 66,429 | |
Due Year Three | 61,280 | |
Due Year Four | 55,488 | |
Due after Year Four | 277,590 | |
Net Carrying Value | $ 650,948 | $ 631,766 |
Commitments and Contingencies (Legal) (Details) - SEC Civil Penalty - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Mar. 22, 2024 |
|
Settlement In Principle Is Reached | ||
Loss Contingencies [Line Items] | ||
Loss contingency, accrual, current | $ 50.0 | |
Settlement In Principle Is Not Reached | ||
Loss Contingencies [Line Items] | ||
Civil penalty | $ 50.0 | |
Litigation expense | $ 40.0 |
Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Broker-Dealer [Abstract] | ||
Collateral securities | $ 484.9 | |
Collateral security (Fair value) | 678.9 | |
Amount pledged with client-owned securities | 357.2 | |
Remaining collateral securities that can be re-pledged, loaned, or sold | 321.7 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Remaining collateral securities that can be re-pledged, loaned, or sold | 321.7 | |
Options Clearing Corporation [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Marketable Securities | 8.4 | $ 5.5 |
National Securities Clearing Corporation [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Marketable Securities | $ 19.7 | $ 19.9 |
Commitments and Contingencies - Self insurance Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Self-Insurance Liability [Roll Forward] | ||
Self-insurance liability, beginning balance | $ 79,984 | $ 77,393 |
Losses incurred | 9,306 | 9,047 |
Losses paid | (12,205) | (5,725) |
Self-insurance liability, ending balance | $ 82,883 | $ 74,071 |
Stockholders' Equity (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 |
Dividends, Common Stock [Abstract] | ||
Cash dividends on common stock | $ 22,411 | $ 23,584 |
Stockholdes' Equity (Share Repurchases) (Details) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
$ / shares
shares
| |
Stockholders' Equity Note [Abstract] | |
Shares Purchased | shares | 296,145 |
Weighted-Average Price Paid Per Share | $ / shares | $ 236.39 |
Treasury Stock, Valued, Acquired, Excluding Excise Tax | $ 70.0 |
Stock Repurchase Program, Authorized Amount | $ 830.0 |
Share-Based Compensation (Texuals) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based compensation: | ||
Authorized shares | 17,754,197 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 11,656,366 | |
Employees, officers and directors [Member] | Restricted Stock [Member] | ||
Share-based compensation: | ||
Share-based compensation expense | $ 20,300,000 | $ 16,200,000 |
Share-based compensation cost unrecognized | $ 138,400,000 | |
Non-vested compensation cost weighted-average period | 2 years 2 months 23 days | |
Employees, officers and directors [Member] | Stock options and warrants [Member] | ||
Share-based compensation: | ||
Share-based compensation expense | $ 0 | $ 0 |
Advisors and Financial Institutions [Member] | Restricted stock units (RSUs) [Member] | ||
Share-based compensation: | ||
Share-based compensation expense | 700,000 | |
Share-based compensation cost unrecognized | $ 4,500,000 | |
Non-vested compensation cost weighted-average period | 1 year 11 months 23 days |
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 288,764 | $ 338,884 |
Basic weighted-average number of shares outstanding | 74,562 | 78,750 |
Dilutive common share equivalents | 901 | 1,224 |
Diluted weighted-average number of shares outstanding | 75,463 | 79,974 |
Basic earnings per share | $ 3.87 | $ 4.30 |
Diluted earnings per share | $ 3.83 | $ 4.24 |
Earnings per Share (Textuals) (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 162,078 | 75,416 |
Net Capital and Regulatory Requirements (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Broker-Dealer [Abstract] | |
Net capital | $ 328,479 |
Less: required net capital | 18,070 |
Excess net capital | $ 310,409 |
Subsequent Events - Dividend Declared (Details) - Subsequent Event |
May 21, 2024
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Dividend payable, amount per share (in USD per share) | $ 0.30 |
Forecast | |
Subsequent Event [Line Items] | |
Dividends payable, date to be paid | Jun. 04, 2024 |
Dividends payable, date of record | May 21, 2024 |
KWN1S;H!L4SN&
M.AW_(,;9U$.I=E*HV8V8Q_$ IGG#D0]D_.CR6-,0VVO5: H950'VW:2A>"*_
M"7 \H=,>M-
MM5B*-4_+1ZC.)A0$#G9[T\GH<>ATL@D6AYH]H.8)$DM..XQ$>T:B'V+$-%.,
MB$-GBDVPN4VP.-+L6QUUUYI8 &PO=V]R:W-H965T ]AW0S1@+@J Q.X F=M"$=7+ZBW]#G-6+O XAAF9+;9P+I- _+.+VO\U% GOI7 G#>Y4
M\5HA.C;UY;"\QS1($-I4AQD*,L@BFV (=?M4M;UW2WX0WFG]V*OT0YXQ1:L)H%=G"RW
M':NKU3;OI-C<[-6/EWO$'[D=+S6)Q0)"O>,!)#Q5;KN6)T9FQ<[E@S1&)L7A
M2O!0*/L W%](:;8G]@75YO?X/U!+ P04 " P@:)8>[.:8T,' "J(@
M& 'AL+W=OM%IEN1T_0HX0TS \B&'R!-TM&>?&;_#L^.I)/U-<\"7W: KR_N
MP=K^NEQ89^B)_]Y7O99]M)_=M_V%K5F!DXCZVJ)98Y2_>S,\2[[LD_Z?R%X4
M8M078G2,/9\Q6P(7:T%/D%LX$0JXEI(9"S6:]OV<[JM 2WL>:/V<6N?)@&YF
MO2OL>$R;;[S3.!6:59@G%@K=*-<^K][;CZS+T*FO_%,:9>WD^4O3SD%Z/"NA
M+$A<$F4R.*=!8-K9TAI.UZ$]%]I1LX=M2>,8C0^@_TNMW=;P!_0#/O\#4$L#
M!!0 ( #"!HEA6KC\&B H /0M 8 >&PO=V]R:W-H965TGU1YJ7:_4Z&^3^-ZL5QE6
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MR:>H^I)1?4K+#G<"C_JD4S[C@9;MD-K=-PD#W@@#;A<& X-
>%G].2C/S'@_!P;.;#8U__MK
M].@-'=AK2Y+SZ#
+, @H"$508<(F&ZW8.C-GO+TRXYQ_%&[E;PIT 9E/2WZ3]6ZDGJA)>6
MZ.,%"UYO!.HK>RX1U%XL:1'Y]-YT/-%]90BQ_86R4:%S'M!\4D%$3<$7%(+;
MAD)GM3(5;U@5H77'+YPEXRDY-E&KL4$0HQ)X$B
3 4O%DE>YN94/'T5M3XSR
M%C+7])\]6-HH'+!%I8TL:F;0H,A*^\L?:S^T&";> 8:@9@A(;WL1:?F!&WYQ
MIN0#4T@-TG!!IA(W*)>5&)0[H^ T SYS<;?F2IQ<@ETI>R\+B+7FZ*ZSD0'I
M2#-:U)(NK:3@@*20?9:E66MV5:8B[?*/0*N=:D&CVF5P5.!GKEP6^@X+O" Z
M(B_