8-K - IBKR - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 16, 2024

Interactive Brokers Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-33440	30-0390693
(State or Other Jurisdiction<br><br> <br>of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

One Pickwick Plaza, Greenwich, Connecticut 06830

(Address of Principal Executive Offices) (Zip Code)

(203) 618-5800

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each class	Trading Symbol	Name of the exchange on which registered
---	---	---
Class A common stock, par value $.01<br> per share	IBKR	The Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this<br> chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
---
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any<br> new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July16, 2024, Interactive Brokers Group, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. All of the information furnished in this report (including Exhibit 99.1 hereto) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and unless expressly set forth by specific reference in such filings, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits
99.1	Press Release dated July<br> 16, 2024.
---	---
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within<br> the Inline XBRL Document).
---	---

***

SIGNATURE

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

Dated: July 16, 2024

INTERACTIVE BROKERS GROUP, INC.
By:	/s/ Paul J. Brody
Name:	Paul J. Brody
Title:	Chief Financial Officer, Treasurer<br><br> <br>and Secretary

INTERACTIVE BROKERS GROUP ANNOUNCES 2Q2024 RESULTS

— — —

GAAP DILUTED EPS OF $1.65, ADJUSTED^1^ EPS OF $1.76

GAAP NET REVENUES OF $1,230 MILLION, ADJUSTED NET REVENUES OF $1,290 MILLION

GREENWICH, CT, July 16, 2024 — Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended June 30, 2024.

Reported diluted earnings per share were $1.65 for the current quarter and $1.76 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.20 and $1.32 as adjusted.

Reported net revenues were $1,230 million for the current quarter and $1,290 million as adjusted. For the year-ago quarter, reported net revenues were $1,000 million and $1,064 million as adjusted.

Reported income before income taxes was $880 million for the current quarter and $940 million as adjusted. For the year-ago quarter, reported income before income taxes was $652 million and $716 million as adjusted.

Financial Highlights

(All comparisons are to the year-ago quarter.)

•	Commission revenue increased 26% to $406 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 35%, 26% and 10%, respectively.
•	Net interest income increased 14% to $792 million on higher benchmark interest rates, customer margin loans and customer credit balances.
---	---
•	Other fees and services increased $21 million, or 45%, to $68 million, driven primarily by increases of $14 million in risk exposure fees and $3 million each in payments for order flow from exchange-mandated<br> programs and FDIC sweep program fees.
---	---
•	Execution, clearing and distribution fees expenses increased 24% to $115 million, driven by higher customer trading volumes and an increase in the SEC fee rate during the current quarter.
---	---
•	Pretax profit margin for the current quarter was 72% as reported and 73% as adjusted. For the year-ago quarter, reported pretax margin was 65% and 67% as adjusted.
---	---
•	Total equity of $15.2 billion.
---	---

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.25 per share. This dividend is payable on September 13, 2024, to shareholders of record as of August 30, 2024.

Business Highlights

(All comparisons are to the year-ago quarter.)

•	Customer accounts increased 28% to 2.92 million.
•	Customer equity increased 36% to $497.2 billion.
---	---
•	Total DARTs^2^ increased 28% to 2.39 million.
---	---
•	Customer credits increased 8% to $107.1 billion.
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•	Customer margin loans increased 32% to $55.1 billion.
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^1^ See the reconciliation of non-GAAP financial measures starting on page 9.

^2^ Daily average revenue trades (DARTs) are based on customer orders.

Other Items

As previously disclosed, during the current quarter, we recognized a loss of approximately $48 million on positions taken over as customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $30 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.22%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $20 million) and (2) Other Comprehensive Income (loss of $10 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, July 16, 2024, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register.vevent.com/register/BI9f2adf478d354c83b495036e581df05b to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies, from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron’s, Investopedia, Stockbrokers.com, and many others.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2024		2023		2024		2023
			(in millions, except share and per share data)
Revenues:
	Commissions		$	406	$	322	$	785	$	679
	Other fees and services			68		47		127		90
	Other income (loss)			(36)		(63)		(18)		(44)
		Total non-interest income		438		306		894		725
	Interest income			1,828		1,545		3,588		2,892
	Interest expense			(1,036)		(851)		(2,049)		(1,561)
		Total net interest income		792		694		1,539		1,331
		Total net revenues		1,230		1,000		2,433		2,056
Non-interest expenses:
	Execution, clearing and distribution fees			115		93		216		188
	Employee compensation and benefits			146		136		291		264
	Occupancy, depreciation and amortization			25		25		51		49
	Communications			10		10		20		19
	General and administrative			52		85		102		121
	Customer bad debt			2		(1)		7		2
		Total non-interest expenses		350		348		687		643
Income before income taxes				880		652		1,746		1,413
Income tax expense				71		51		142		112
Net income				809		601		1,604		1,301
Net income attributable to noncontrolling interests				630		476		1,250		1,028
Net income available for common stockholders			$	179	$	125	$	354	$	273
Earnings per share:
	Basic		$	1.67	$	1.21	$	3.30	$	2.65
	Diluted		$	1.65	$	1.20	$	3.27	$	2.62
Weighted average common shares outstanding:
	Basic			107,719,020		103,587,557		107,394,925		103,274,846
	Diluted			108,626,836		104,463,729		108,388,138		104,254,888

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2024		2023		2024		2023
			(in millions, except share and per share data)
Comprehensive income:
	Net income available for common stockholders		$	179	$	125	$	354	$	273
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes		(2)		7		(28)		12
		Income taxes related to items of other comprehensive income		-		-		-		-
	Other comprehensive income (loss), net of tax			(2)		7		(28)		12
Comprehensive income available for common stockholders			$	177	$	132	$	326	$	285
Comprehensive earnings per share:
	Basic		$	1.64	$	1.28	$	3.03	$	2.76
	Diluted		$	1.63	$	1.27	$	3.00	$	2.74
Weighted average common shares outstanding:
	Basic			107,719,020		103,587,557		107,394,925		103,274,846
	Diluted			108,626,836		104,463,729		108,388,138		104,254,888
Comprehensive income attributable to noncontrolling interests:
	Net income attributable to noncontrolling interests		$	630	$	476	$	1,250	$	1,028
	Other comprehensive income - cumulative translation adjustment			(8)		24		(84)		38
Comprehensive income attributable to noncontrolling interests			$	622	$	500	$	1,166	$	1,066

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

				June 30,<br><br> <br>2024		December 31,<br><br> <br>2023
				(in millions)
Assets
Cash and cash equivalents				$	3,918	$	3,753
Cash - segregated for regulatory purposes					31,370		28,840
Securities - segregated for regulatory purposes					28,318		35,386
Securities borrowed					6,218		5,835
Securities purchased under agreements to resell					6,211		5,504
Financial instruments owned, at fair value					1,766		1,488
Receivables from customers, net of allowance for credit losses					55,252		44,472
Receivables from brokers, dealers and clearing organizations					1,810		1,643
Other assets					1,785		1,502
	Total assets			$	136,648	$	128,423
Liabilities and equity
Liabilities
Short-term borrowings				$	11	$	17
Securities loaned					15,682		11,347
Financial instruments sold but not yet purchased, at fair value					473		193
Other payables:
	Customers				103,373		101,012
	Brokers, dealers and clearing organizations				570		590
	Other payables				1,355		1,197
					105,298		102,799
	Total liabilities				121,464		114,356
Equity
Stockholders' equity					3,927		3,584
Noncontrolling interests					11,257		10,483
	Total equity				15,184		14,067
	Total liabilities and equity			$	136,648	$	128,423
		June 30, 2024			December 31, 2023
Ownership of IBG LLC Membership Interests		Interests	%		Interests		%
IBG, Inc.		108,496,779	25.7%		107,049,483		25.4%
Noncontrolling interests (IBG Holdings LLC)		313,976,354	74.3%		313,976,354		74.6%
Total IBG LLC membership interests		422,473,133	100.0%		421,025,837		100.0%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

EXECUTED ORDER VOLUMES:

(in 000's, except %)

	Customer	%	Principal	%	Total	%
Period	Orders	Change	Orders	Change	Orders	Change
2021	646,440		27,334		673,774
2022	532,064	(18%)	26,966	(1%)	559,030	(17%)
2023	483,015	(9%)	29,712	10%	512,727	(8%)
2Q2023	115,611		6,836		122,447
2Q2024	150,292	30%	13,215	93%	163,507	34%
1Q2024	143,320		9,190		152,510
2Q2024	150,292	5%	13,215	44%	163,507	7%

CONTRACT AND SHARE VOLUMES:

(in 000's, except %)

TOTAL

	Options	%	Futures^1^	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2021	887,849		154,866		771,273,709
2022	908,415	2%	207,138	34%	330,035,586	(57%)
2023	1,020,736	12%	209,034	1%	252,742,847	(23%)
2Q2023	236,803		49,644		58,720,684
2Q2024	321,141	36%	55,171	11%	73,734,105	26%
1Q2024	307,593		54,046		64,027,092
2Q2024	321,141	4%	55,171	2%	73,734,105	15%

          CUSTOMER

	Options	%	Futures^1^	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2021	852,169		152,787		766,211,726
2022	873,914	3%	203,933	33%	325,368,714	(58%)
2023	981,172	12%	206,073	1%	248,588,960	(24%)
2Q2023	227,884		49,040		57,711,637
2Q2024	308,298	35%	54,106	10%	72,480,534	26%
1Q2024	296,146		53,018		62,898,480
2Q2024	308,298	4%	54,106	2%	72,480,534	15%

PRINCIPAL TRANSACTIONS

	Options	%	Futures^1^	%	Stocks	%
Period	(contracts)	Change	(contracts)	Change	(shares)	Change
2021	35,680		2,079		5,061,983
2022	34,501	(3%)	3,205	54%	4,666,872	(8%)
2023	39,564	15%	2,961	(8%)	4,153,887	(11%)
2Q2023	8,919		604		1,009,047
2Q2024	12,843	44%	1,065	76%	1,253,571	24%
1Q2024	11,447		1,028		1,128,612
2Q2024	12,843	12%	1,065	4%	1,253,571	11%

^1^	Includes options on futures.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

CUSTOMER STATISTICS

Year over Year		2Q2024		2Q2023	% Change
Total Accounts (in thousands)		2,924		2,290	28%
Customer Equity (in billions)^1^	$	497.2	$	365.0	36%
Total Customer DARTs (in thousands)		2,386		1,865	28%
Cleared Customers
Commission per Cleared Commissionable Order^2^	$	3.01	$	3.11	(3%)
Cleared Avg. DARTs per Account (Annualized)		187		186	1%
Consecutive Quarters		2Q2024		1Q2024	% Change
Total Accounts (in thousands)		2,924		2,746	6%
Customer Equity (in billions)^1^	$	497.2	$	465.9	7%
Total Customer DARTs (in thousands)		2,386		2,350	2%
Cleared Customers
Commission per Cleared Commissionable Order^2^	$	3.01	$	2.93	3%
Cleared Avg. DARTs per Account (Annualized)		187		197	(5%)

^1^	Excludes non-customers.
^2^	Commissionable Order - a customer order that generates commissions.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

(UNAUDITED)

			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2024		2023		2024		2023
			(in millions)
Average interest-earning assets
	Segregated cash and securities		$	60,057	$	61,038	$	60,595	$	60,359
	Customer margin loans			52,422		39,989		49,538		39,646
	Securities borrowed			5,898		5,649		5,633		5,259
	Other interest-earning assets			11,218		10,090		10,585		9,934
	FDIC sweeps^1^			4,023		2,719		3,942		2,574
			$	133,618	$	119,485	$	130,292	$	117,770
Average interest-bearing liabilities
	Customer credit balances		$	102,709	$	96,416	$	101,110	$	96,109
	Securities loaned			13,688		9,729		12,711		9,150
	Other interest-bearing liabilities			1		-		1		1
			$	116,398	$	106,145	$	113,821	$	105,260
Net interest income
	Segregated cash and securities, net		$	740	$	700	$	1,504	$	1,303
	Customer margin loans^2^			755		547		1,433		1,024
	Securities borrowed and loaned, net			25		79		51		167
	Customer credit balances, net^2^			(894)		(774)		(1,775)		(1,427)
	Other net interest income^1/3^			179		145		354		270
		Net interest income^3^	$	805	$	697	$	1,567	$	1,337
Net interest margin ("NIM")				2.42%		2.34%		2.42%		2.29%
Annualized yields
	Segregated cash and securities			4.96%		4.60%		4.99%		4.35%
	Customer margin loans			5.79%		5.49%		5.82%		5.21%
	Customer credit balances			3.50%		3.22%		3.53%		2.99%

^1^	Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep<br> Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
^2^	Interest income and interest expense on customer margin loans and customer credit<br> balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities<br> segments).
^3^	Includes income from financial instruments that has the same characteristics as<br> interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and six months ended June 30, 2024 and 2023, $7 million, $13 million, $5<br> million, and $8 million were reported in other fees and services, respectively. For the three and six months ended June 30, 2024 and 2023, $6 million, $15 million, -$2 million, and -$2 million were reported in other income,<br> respectively.

^1^

Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.

^2^

Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).

^3^

Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and six months ended June 30, 2024 and 2023, $7 million, $13 million, $5 million, and $8 million were reported in other fees and services, respectively. For the three and six months ended June 30, 2024 and 2023, $6 million, $15 million, -$2 million, and -$2 million were reported in other income, respectively.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2024		2023		2024		2023
		(in millions)
Adjusted net revenues^1^
Net revenues - GAAP		$	1,230	$	1,000	$	2,433	$	2,056
Non-GAAP adjustments
	Currency diversification strategy, net		20		55		22		54
	Mark-to-market on investments^2^		40		9		51		(31)
Total non-GAAP adjustments			60		64		73		23
Adjusted net revenues		$	1,290	$	1,064	$	2,506	$	2,079
Adjusted income before income taxes^1^
Income before income taxes - GAAP		$	880	$	652	$	1,746	$	1,413
Non-GAAP adjustments
	Currency diversification strategy, net		20		55		22		54
	Mark-to-market on investments^2^		40		9		51		(31)
Total non-GAAP adjustments			60		64		73		23
Adjusted income before income taxes		$	940	$	716	$	1,819	$	1,436
Adjusted pre-tax profit margin			73%		67%		73%		69%

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2024		2023		2024		2023
		(in millions)
Adjusted net income available for common stockholders^1^
Net income available for common stockholders - GAAP		$	179	$	125	$	354	$	273
Non-GAAP adjustments
	Currency diversification strategy, net		5		14		5		14
	Mark-to-market on investments^2^		10		2		13		(8)
	Income tax effect of above adjustments^3^		(3)		(3)		(4)		(1)
Total non-GAAP adjustments			12		13		14		5
Adjusted net income available for common stockholders		$	191	$	138	$	368	$	278
Note: Amounts may not add due to rounding.
		Three Months				Six Months
---	---	---	---	---	---	---	---	---	---
		Ended June 30,				Ended June 30,
		2024		2023		2024		2023
		(in dollars)
Adjusted diluted EPS^1^
Diluted EPS - GAAP		$	1.65	$	1.20	$	3.27	$	2.62
Non-GAAP adjustments
	Currency diversification strategy, net		0.05		0.13		0.05		0.13
	Mark-to-market on investments^2^		0.09		0.02		0.12		(0.07)
	Income tax effect of above adjustments^3^		(0.03)		(0.03)		(0.04)		(0.01)
Total non-GAAP adjustments			0.11		0.12		0.13		0.04
Adjusted diluted EPS		$	1.76	$	1.32	$	3.40	$	2.67
Diluted weighted average common shares outstanding			108,626,836		104,463,729		108,388,138		104,254,888
Note: Amounts may not add due to rounding.

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.

^1^Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.

•	We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments^2^.
•	We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on<br> investments.
---	---
•	We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our<br> currency diversification strategy and our net mark-to-market gains (losses) on investments.
---	---
•	We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.
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Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

^2^ Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments, including equity securities taken over by the Company as a customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.

^3^The income tax effect is estimated using the statutory income tax rates applicable to the Company.