| Trading Activities [Text Block] |
5. INVESTMENT BANKING AND NEW ISSUE AND NET TRADING
INVESTMENT BANKING AND NEW ISSUE
(Dollars in Thousands)
| | | Three Months Ended June 30, 2026 | |
| | | Cash | | | Non-Cash | | | Total | |
| CCM - Underwriting | | $ | 9,844 | | | $ | 5,007 | | | $ | 14,851 | |
| CCM - Advisory and other new issue | | | 4,231 | | | | 8,781 | | | | 13,012 | |
| Other - Origination | | | 193 | | | | - | | | | 193 | |
| Total | | $ | 14,268 | | | $ | 13,788 | | | | 28,056 | |
| Gains / (losses) on CCM financial instruments received as non-cash consideration | | | | | | | | | | | 26,003 | |
| Investment banking and new issue | | | | | | | | | | $ | 54,059 | |
| | | | | | | | | | | | | |
| | | Six Months Ended June 30, 2026 | |
| | | Cash | | | Non-Cash | | | Total | |
| CCM - Underwriting | | $ | 27,240 | | | $ | 10,724 | | | $ | 37,964 | |
| CCM - Advisory and other new issue | | | 15,887 | | | | 14,486 | | | | 30,373 | |
| Other - Origination | | | 193 | | | | - | | | | 193 | |
| Total | | $ | 43,320 | | | $ | 25,210 | | | | 68,530 | |
| Gains / (losses) on CCM financial instruments received as non-cash consideration | | | | | | | | | | | 31,240 | |
| Investment banking and new issue | | | | | | | | | | $ | 99,770 | |
| | | Three Months Ended June 30, 2025 | |
| | | Cash | | | Non-Cash | | | Total | |
| CCM - Underwriting | | $ | 11,106 | | | $ | 4,444 | | | $ | 15,550 | |
| CCM - Advisory and other new issue | | | 13,627 | | | | 8,234 | | | | 21,861 | |
| Total | | $ | 24,733 | | | $ | 12,678 | | | | 37,411 | |
| Gains / (losses) on CCM financial instruments received as non-cash consideration | | | | | | | | | | | 6,722 | |
| Investment banking and new issue | | | | | | | | | | $ | 44,133 | |
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| | | Six Months Ended June 30, 2025 | |
| | | Cash | | | Non-Cash | | | Total | |
| CCM - Underwriting | | $ | 13,331 | | | $ | 6,078 | | | $ | 19,409 | |
| CCM - Advisory and other new issue | | | 25,993 | | | | 25,248 | | | | 51,241 | |
| Total | | $ | 39,324 | | | $ | 31,326 | | | | 70,650 | |
| Gains / (losses) on CCM financial instruments received as non-cash consideration | | | | | | | | | | | (6,353 | ) |
| Investment banking and new issue | | | | | | | | | | $ | 64,297 | |
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As of June 30, 2026, the Company had $63,162 included as a component of other investments, at fair value, representing the remaining carrying amount of the financial instruments received as non-cash investment banking and new issue revenue. In terms of the remaining exposure to the Company from monetization of these amounts, this would represent the gross potential loss the Company could incur if these assets were liquidated for $0. As of June 30, 2026, the Company has also accrued $37,858 in compensation to employees related to these amounts. The amount finally due to the employees is based on the final monetized amount (see note 13). The amount of compensation accrued presumes these investments are monetized for their carrying amount. Accordingly, if the $63,162 of other investments, at fair value were liquidated for $0, the net loss to the Company would be $25,304.
Net trading consisted of the following in the periods presented.
NET TRADING
(Dollars in Thousands)
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Net realized gains (losses) - trading inventory | | $ | 8,679 | | | $ | 4,237 | | | $ | 16,150 | | | $ | 8,465 | |
| Net unrealized gains (losses) - trading inventory | | | (1,450 | ) | | | 1,682 | | | | (2,281 | ) | | | 2,307 | |
| Net gains and losses | | | 7,229 | | | | 5,919 | | | | 13,869 | | | | 10,772 | |
| | | | | | | | | | | | | | | | | |
| Interest income- trading inventory | | | 741 | | | | 1,259 | | | | 1,533 | | | | 2,089 | |
| Interest income-reverse repos | | | 4,928 | | | | 10,704 | | | | 9,010 | | | | 20,245 | |
| Interest income | | | 5,669 | | | | 11,963 | | | | 10,543 | | | | 22,334 | |
| | | | | | | | | | | | | | | | | |
| Interest expense-repos | | | (4,534 | ) | | | (9,534 | ) | | | (8,262 | ) | | | (18,036 | ) |
| Interest expense-margin payable | | | (219 | ) | | | (879 | ) | | | (336 | ) | | | (1,530 | ) |
| Interest expense | | | (4,753 | ) | | | (10,413 | ) | | | (8,598 | ) | | | (19,566 | ) |
| | | | | | | | | | | | | | | | | |
| Other trading revenue | | | 5,743 | | | | 3,288 | | | | 11,274 | | | | 6,428 | |
| | | | | | | | | | | | | | | | | |
| Net trading | | $ | 13,888 | | | $ | 10,757 | | | $ | 27,088 | | | $ | 19,968 | |
Trading inventory includes investments classified as investments-trading as well as trading securities sold, not yet purchased. See note 7. For discussion of margin payable, see note 6. Other trading revenue includes revenue earned from the Company's agency repo business (see note 10).
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