Oppenheimer Holdings Inc 10-Q for FY2022 Q3

Oppenheimer Holdings Inc (OPY)

10-Q 2022-10-28 For: 2022-09-30

Added on April 11, 2026

About this 10-Q

Oppenheimer Holdings Inc filed this 10-Q on October 28, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $294.11M; down 6.7% from $315.34M a year earlier
Net income: $4.52M; down 82.8% from net income of $26.25M a year earlier
Diluted EPS: $0.37; down 80.7% from $1.92 a year earlier

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Delaware			98-0080034
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A non-voting common stock	OPY	The New York Stock Exchange



		Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of Septe mber 30, 2022 and December 31, 2021	3
	Condensed Consolidated Income Statements for the three and nine months ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended S eptember 30, 2022 and 2021	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity and Redeem a b le Noncontrolling Interests for the three and nine months ended September 30, 2022 and 2021	6
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	55
Item 4.	Controls and Procedures	56
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	57
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 6.	Exhibits	60
	Signatures	61


(Expressed in thousands, except number of shares and per share amounts)	September 30, 2022		December 31, 2021 (1)
ASSETS
Cash and cash equivalents	$	36,578	$	213,759
Deposits with clearing organizations	95,645		66,968
Restricted cash	128,280		127,765
Receivable from brokers, dealers and clearing organizations	177,206		169,902
Receivable from customers, net of allowance for credit losses of $3,367 ($3,326 in 2021)	1,178,713		1,221,450

Securities purchased under agreements to resell	—		935
Securities owned, including amounts pledged of $385,820 ($266,428 in 2021), at fair value	662,677		634,504
Notes receivable, net	57,205		53,983
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $98,047 ($92,785 in 2021)	33,946		28,036
Right-of-use lease assets, net of accumulated amortization of $77,531 ($76,462 in 2021)	148,479		150,121
Goodwill	137,889		137,889
Intangible assets	32,100		32,100
Other assets	167,307		205,838
Total assets	$	2,856,025	$	3,043,250
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable	$	9,644	$	—
Bank call loans	53,600		69,500
Payable to brokers, dealers and clearing organizations	493,446		422,057
Payable to customers	381,112		456,958
Securities sold under agreements to repurchase	284,032		277,322
Securities sold but not yet purchased, at fair value	94,893		71,958
Accrued compensation	196,948		342,125
Income tax payable	1,788		13,536
Accounts payable and other liabilities	91,119		76,655
Lease liabilities	189,298		192,019
Senior secured notes, net of debt issuance costs of $737 ($926 in 2021)	124,263		124,074
Deferred tax liabilities, net of deferred tax assets of $53,059 ($54,957 in 2021)	35,542		44,016
Total liabilities	1,955,685		2,090,220
Commitments and contingencies (Note 14)
Redeemable noncontrolling interests	127,765		127,765
Stockholders' equity
Common stock ($0.001 par value per share): Class A: shares authorized: 50,000,000; shares issued and outstanding: 10,874,990 and 12,447,036 as of September 30, 2022 and December 31, 2021, respectively Class B: shares authorized, issued and outstanding: 99,665 as of September 30, 2022 and December 31, 2021	11		13
Additional paid-in capital	25,918		78,032
Retained earnings	743,650		740,926
Accumulated other comprehensive income	1,163		4,225
Total Oppenheimer Holdings Inc. stockholders' equity	770,742		823,196
Noncontrolling interest (Note 2)	1,833		2,069
Total Stockholders' equity	772,575		825,265
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity	$	2,856,025	$	3,043,250



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Expressed in thousands, except number of shares and per share amounts)	2022		2021		2022		2021
REVENUE
Commissions	$	89,608	$	90,889	$	282,307	$	300,531
Advisory fees	102,927		116,751		326,098		332,399
Investment banking	38,393		86,901		93,516		316,144
Bank deposit sweep income	35,769		3,909		54,968		11,629
Interest	17,361		9,340		38,667		26,915
Principal transactions, net	6,502		4,494		10,124		21,664
Other	3,551		3,058		(8,319)		19,635
Total revenue	294,111		315,342		797,361		1,028,917
EXPENSES
Compensation and related expenses	179,134		206,312		543,144		693,053
Communications and technology	21,500		19,718		63,981		59,497
Occupancy and equipment costs	15,457		14,964		44,701		45,371
Clearing and exchange fees	6,705		5,237		18,923		16,667
Interest	7,018		2,468		13,158		7,563
Other	57,059		29,249		98,172		74,077
Total expenses	286,873		277,948		782,079		896,228

Pre-tax income	7,238		37,394		15,282		132,689
Income taxes provision	2,573		11,144		5,559		36,622
Net income	$	4,665	$	26,250	$	9,723	$	96,067

Net income (loss) attributable to noncontrolling interest, net of tax	145		—		(215)		—
Net income attributable to Oppenheimer Holdings Inc.	$	4,520	$	26,250	$	9,938	$	96,067

Earnings per share attributable to Oppenheimer Holdings Inc.
Basic	$	0.40	$	2.07	$	0.84	$	7.59
Diluted	$	0.37	$	1.92	$	0.78	$	7.10

Weighted average shares outstanding
Basic	11,270,589		12,690,386		11,901,727		12,653,310
Diluted	12,190,425		13,664,214		12,809,000		13,539,373

Period end shares outstanding	10,974,655		12,615,399		10,974,655		12,615,399


☒			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



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Expressed in thousands)	2022		2021		2022		2021
Net income	$	4,665	$	26,250	$	9,723	$	96,067
Other comprehensive income (loss), net of tax
Currency translation adjustment	(410)		235		(3,062)		(64)
Comprehensive income	$	4,255	$	26,485	6,661		96,003
Less net income (loss) attributable to noncontrolling interests	145		—		(215)		—
Comprehensive income attributable to Oppenheimer Holdings Inc.	$	4,110	$	26,485	$	6,876	$	96,003



	For the Three Months Ended September 30 (1),				For the Nine Months Ended September 30 (1),
(Expressed in thousands, except per share amount)	2022		2021		2022		2021
Common stock ($0.001 par value per share)
Beginning Balance	$	11	$	13	$	12	$	13
Issuance of Class A non-voting common stock	—		—		—		—
Repurchase of Class A non-voting common stock for cancellation	—		—		(1)		—
Ending Balance	11		13		11		13
Additional paid-in capital
Balance at beginning of period	35,461		81,152		78,034		80,801
Issuance of Class A non-voting common stock	518		850		2,862		4,846
Repurchase of Class A non-voting common stock for cancellation	(12,206)		(4,715)		(58,581)		(4,715)



Share-based expense	2,631		2,608		8,684		7,827
Vested employee share plan awards	(486)		(875)		(5,081)		(9,739)

Balance at end of period	25,918		79,020		25,918		79,020
Retained earnings
Balance at beginning of period	742,614		668,193		740,926		601,406
Repurchase of Class A non-voting common stock for cancellation	(1,781)		—		(1,781)		—
Net income (2)	4,520		26,250		9,938		96,067
Dividends paid	(1,703)		(1,906)		(5,433)		(4,936)

Balance at end of period	743,650		692,537		743,650		692,537
Accumulated other comprehensive income
Balance at beginning of period	1,573		3,149		4,225		3,448
Currency translation adjustment	(410)		235		(3,062)		(64)
Balance at end of period	1,163		3,384		1,163		3,384
Total Oppenheimer Holdings Inc. stockholders' equity	$	770,742	$	774,954	$	770,742	$	774,954
Noncontrolling interest
Balance at beginning of period	1,709		—		2,069		—
Capital distribution to noncontrolling interest	(21)		—		(21)		—
Net income (loss) attributable to noncontrolling interest	145		—		(215)		—

Balance at end of period	1,833		—		1,833		—
Total stockholders' equity	$	772,575	$	774,954	$	772,575	$	774,954
Redeemable Noncontrolling Interests
Balance at beginning of period	127,765		—		127,765		—
Contributions during the year	—		—		—		—
Balance at end of period	$	127,765	$	—	$	127,765	$	—

Dividends paid per share	$	0.15	$	0.15	$	0.45	$	0.39

(1) Certain prior period reported amounts were reclassified to conform to the current period presentation, See Note 2.
(2) Attributable to Oppenheimer Holdings Inc.


Table of Contents
OPPENHEIMER HOLDINGS INC. Notes to Condensed Consolidated Financial Statements (unaudited)


(Expressed in thousands)
	As of September 30, 2022

2022	$	859
2021	2,327
2020	542
2019	353
2018	132
2017 and prior	3,449
Total	$	7,662


(Expressed in thousands)
	For the Three Months Ended September 30,				For the Nine Months Ended September 30
	2022		2021		2022		2021
Beginning balance	$	5,106	$	4,701	$	4,923	$	4,234
Additions and other adjustments	97		28		280		495
Ending balance	$	5,203	$	4,729	$	5,203	$	4,729


	As of
	September 30, 2022	December 31, 2021

Weighted average remaining lease term (in years)	6.96	7.38
Weighted average discount rate	6.67%	6.89%


(Expressed in thousands)	For the Three Months Ended September 30, 2022
	Reportable Segments
	Private Client		Asset Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	39,290	$	—	$	42,699	$	12	$	82,001
Mutual fund and insurance income	7,603		—		1		3		7,607
Advisory fees	78,055		24,865		—		7		102,927
Investment banking - capital markets	1,950		—		7,173		—		9,123
Investment banking - advisory	—		—		29,270		—		29,270
Bank deposit sweep income	35,769		—		—		—		35,769
Other	5,126		—		652		39		5,817
Total revenue from contracts with customers	167,793		24,865		79,795		61		272,514
Other sources of revenue:
Interest	14,471		—		2,265		625		17,361
Principal transactions, net	(884)		—		8,637		(1,251)		6,502
Other	(2,766)		5		250		245		(2,266)
Total other sources of revenue	10,821		5		11,152		(381)		21,597
Total revenue	$	178,614	$	24,870	$	90,947	$	(320)	$	294,111


(Expressed in thousands)	For the Nine Months Ended September 30, 2022
	Reportable Segments
	Private Client		Asset Management		Capital Markets		Corporate/Other		Total
Revenue from contracts with customers:
Commissions from sales and trading	$	120,753	$	—	137,760		29		$	258,542
Mutual fund and insurance income	23,733		—		7		25		23,765
Advisory fees	249,667		76,289		117		25		326,098
Investment banking - capital markets	7,615		—		26,407		—		34,022
Investment banking - advisory	35		—		59,459		—		59,494
Bank deposit sweep income	54,968		—		—		—		54,968
Other	12,770		—		1,449		227		14,446
Total revenue from contracts with customers	469,541		76,289		225,199		306		771,335
Other sources of revenue:
Interest	32,987		—		4,950		730		38,667
Principal transactions, net	(5,050)		—		16,717		(1,543)		10,124
Other	(23,546)		13		406		362		(22,765)
Total other sources of revenue	4,391		13		22,073		(451)		26,026
Total revenue	$	473,932	$	76,302	$	247,272	$	(145)	$	797,361


(Expressed in thousands)
	As of
	September 30, 2022		December 31, 2021
2022	$	10,716	$	41,696
2023	41,964		38,477
2024	37,630		33,573
2025	31,542		27,703
2026	29,672		26,342
After 2026	86,261		78,593
Total lease payments	$	237,785	$	246,384
Less interest	(48,487)		(54,365)
Present value of lease liabilities	$	189,298	$	192,019


(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	589	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	8,327		3,161		N/A	N/A
	$	8,916	$	3,161


(Expressed in thousands)
	Fair Value Measurements as of September 30, 2022
	Level 1		Level 2		Level 3		Total
Assets

Deposits with clearing organizations	$	41,389	$	—	$	—	$	41,389
Securities owned:
U.S. Treasury securities	519,569		—		—		519,569
U.S. Agency securities	—		19,063		—		19,063
Sovereign obligations	—		345		—		345
Corporate debt and other obligations	—		12,174		—		12,174
Mortgage and other asset-backed securities	—		2,050		—		2,050
Municipal obligations	—		31,838		—		31,838
Convertible bonds	—		17,139		—		17,139
Corporate equities	27,298		—		—		27,298
Money markets	78		—		—		78
Auction rate securities	—		—		33,123		33,123
Securities owned, at fair value	546,945		82,609		33,123		662,677
Investments (1)	—		8,650		—		8,650






Total	$	588,334	$	91,259	$	33,123	$	712,716
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	72,842	$	—	$	—	$	72,842
U.S. Agency securities	—		6		—		6

Corporate debt and other obligations	—		6,931		—		6,931


Convertible bonds	—		3,799		—		3,799
Corporate equities	11,315		—		—		11,315

Securities sold but not yet purchased, at fair value	84,157		10,736		—		94,893

Derivative contracts:
Futures	149		—		—		149




Derivative contracts, total	149		—		—		149
Total	$	84,306	$	10,736	$	—	$	95,042


(Expressed in thousands)
	Fair Value Measurements as of December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets


Deposits with clearing organizations	$	29,083	$	—	$	—	$	29,083
Securities owned:
U.S. Treasury securities	505,875		—		—		505,875
U.S. Agency securities	—		5,622		—		5,622
Sovereign obligations	—		1,494		—		1,494
Corporate debt and other obligations	—		8,111		—		8,111
Mortgage and other asset-backed securities	—		3,889		—		3,889
Municipal obligations	—		18,520		—		18,520
Convertible bonds	—		13,778		—		13,778
Corporate equities	45,380		—		—		45,380
Money markets	31		—		—		31
Auction rate securities	—		—		31,804		31,804
Securities owned, at fair value	551,286		51,414		31,804		634,504
Investments (1)	—		12,970		—		12,970

Derivative contracts:
TBAs	—		92		—		92


Total	$	580,369	$	64,476	$	31,804	$	676,649
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	42,298	$	—	$	—	$	42,298
U.S. Agency securities	—		4		—		4

Corporate debt and other obligations	—		2,515		—		2,515


Convertible bonds	—		8,462		—		8,462
Corporate equities	18,679		—		—		18,679

Securities sold but not yet purchased, at fair value	60,977		10,981		—		71,958

Derivative contracts:
Futures	287		—		—		287

TBAs	—		81		—		81

Derivative contracts, total	287		81		—		368
Total	$	61,264	$	11,062	$	—	$	72,326


(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended September 30, 2022
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Losses (3) (4)		and Issuances		Settlements		In (Out)		Balance
Assets
Auction rate securities (1)	$	31,977	$	(29)	$	1,175	$	—	$	—	$	33,123


(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash	$	36,578	$	36,578	$	—	$	—	$	36,578
Restricted cash	128,280		128,280		—		—		128,280
Deposits with clearing organization	54,256		54,256		—		—		54,256
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	72,267		—		72,267		—		72,267
Receivables from brokers	69,653		—		69,653		—		69,653
Securities failed to deliver	9,801		—		9,801		—		9,801
Clearing organizations	22,287		—		22,287		—		22,287
Other	3,198		—		3,198		—		3,198
	177,206		—		177,206		—		177,206
Receivable from customers	1,178,713		—		1,178,713		—		1,178,713

Notes receivable, net	57,205		—		57,205		—		57,205
Investments (1)	75,437		—		75,437		—		75,437


(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	9,644	$	9,644	$	—	$	—	$	9,644
Bank call loans	$	53,600	$	—	$	53,600	$	—	$	53,600
Payables to brokers, dealers and clearing organizations:
Securities loaned	307,383		—		307,383		—		307,383
Payable to brokers	199		—		199		—		199
Securities failed to receive	22,359		—		22,359		—		22,359
Other	163,356		—		163,356		—		163,356
	493,297		—		493,297		—		493,297
Payables to customers	381,112		—		381,112		—		381,112
Securities sold under agreements to repurchase	284,032		—		284,032		—		284,032
Senior secured notes	125,000		—		124,423		—		124,423


(Expressed in thousands)
	Fair Value of Derivative Instruments as of September 30, 2022
	Description	Notional		Fair Value






Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	5,000,000	$	149





		$	5,000,000	$	149


(Expressed in thousands)
	Overnight and Open
Repurchase agreements:
U.S. Government and Agency securities	$	479,159
Securities loaned:
Equity securities	307,383
Gross amount of recognized liabilities for repurchase agreements and securities loaned	$	786,542


As of September 30, 2022
(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	195,127	$	(195,127)	$	—	$	—	$	—	$	—
Securities borrowed (1)	72,267		—		72,267		(72,056)		—		211
Total	$	267,394	$	(195,127)	$	72,267	$	(72,056)	$	—	$	211


							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities Presented on the Balance Sheet		Financial Instruments		Cash Collateral Pledged		Net Amount
Repurchase agreements	$	479,159	$	(195,127)	$	284,032	$	(283,850)	$	—	$	182
Securities loaned (2)	307,383		—		307,383		(292,623)		—		14,760
Total	$	786,542	$	(195,127)	$	591,415	$	(576,473)	$	—	$	14,942


As of December 31, 2021
(Expressed in thousands)							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Balance Sheet		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	30,406	$	(29,471)	$	935	$	—	$	—	$	935
Securities borrowed (1)	99,752		—		99,752		(96,929)		—		2,823
Total	$	130,158	$	(29,471)	$	100,687	$	(96,929)	$	—	$	3,758


(Expressed in thousands)
	As of September 30,
	2022		2021
Asset
Cash and cash equivalents	$	1,369	$	—
Restricted Cash	128,280		—
Other Assets	456		—
Total Assets	$	130,105	$	—
Liabilities
Other Liabilities	189		—
Total Liabilities	$	189	$	—


(Expressed in thousands)
Issued	Maturity Date	September 30, 2022		December 31, 2021
5.50% Senior Secured Notes	10/1/2025	$	125,000	$	125,000
Unamortized Debt Issuance Cost		(737)		(926)
		$	124,263	$	124,074


(Expressed in thousands, except Per Share Amounts or otherwise indicated)
	3Q-2022		3Q-2021		Change		% Change
Revenue	$	294,111	$	315,342	$	(21,231)	(6.7)
Compensation expense	$	179,134	$	206,312	$	(27,178)	(13.2)
Non-compensation expense	$	107,739	$	71,636	$	36,103	50.4
Pre-Tax Income	$	7,238	$	37,394	$	(30,156)	(80.6)
Income Taxes Provision	$	2,573	$	11,144	$	(8,571)	(76.9)
Net Income (1)	$	4,520	$	26,250	$	(21,730)	(82.8)

Earnings per share (basic) (1)	$	0.40	$	2.07	$	(1.67)	(80.7)
Earnings per share (diluted) (1)	$	0.37	$	1.92	$	(1.55)	(80.7)

Book Value Per Share	$	70.23	$	61.43	$	8.80	14.3
Tangible Book Value Per Share (2)	$	54.74	$	47.95	$	6.79	14.2
Class A Shares Outstanding	10,874,990		12,515,734		(1,640,744)		(13.1)

AUA ($ billions)	$	100.3	$	117.8	$	(17.5)	(14.9)
AUM ($ billions)	$	35.3	$	43.6	$	(8.3)	(19.0)
(1) Attributable to Oppenheimer Holdings Inc.
(2) Represents book value less goodwill and intangible assets divided by number of shares outstanding.


(Expressed in thousands)
	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2022		2021		% Change	2022		2021		% Change
Revenue
Private Client	$	178,614	$	160,864	11.0	$	473,932	$	491,750	(3.6)
Asset Management	24,870		26,894		(7.5)	76,302		76,668		(0.5)
Capital Markets	90,947		128,585		(29.3)	247,272		460,129		(46.3)
Corporate/Other	(320)		(1,001)		(68.0)	(145)		370		*
Total	$	294,111	$	315,342	(6.7)	$	797,361	$	1,028,917	(22.5)

Pre-Tax Income (Loss)
Private Client	$	29,973	$	37,426	(19.9)	$	92,919	$	83,362	11.5
Asset Management	8,322		9,412		(11.6)	25,916		25,603		1.2
Capital Markets	2,401		17,888		(86.6)	(14,368)		107,252		*
Corporate/Other	(33,458)		(27,332)		22.4	(89,185)		(83,528)		6.8
Total	$	7,238	$	37,394	(80.6)	$	15,282	$	132,689	(88.5)


('000s, except Financial advisor headcount or otherwise indicated)
	3Q-2022			3Q-2021			Change			% Change
Revenue	$	178,614		$	160,864		$	17,750		11.0
Retail commissions	$	46,893		$	51,348		$	(4,455)		(8.7)
Advisory fee revenue	$	78,055		$	89,849		$	(11,794)		(13.1)
Bank deposit sweep income	$	35,769		$	3,909		$	31,860		815
Interest	$	14,471		$	7,624		$	6,847		89.8
Other	$	3,426		$	8,134		$	(4,708)		(57.9)

Total Expenses	$	148,641		$	123,438		$	25,203		20.4
Compensation	$	87,555		$	97,522		$	(9,967)		(10.2)
Non-compensation	$	61,086		$	25,916		$	35,170		135.7

Pre-tax Income	$	29,973		$	37,426		$	(7,453)		(19.9)

Compensation Ratio	49.0		%	60.6		%	(1,160)			(19.1)
Non-compensation Ratio	34.2		%	16.1		%	1,810			112.4
Pre-tax Margin	16.8		%	23.3		%	(6.5)		%	(27.9)

Asset Under Administration (billions)	$	100.3		$	117.8		$	(17.5)		(14.9)
Cash Sweep Balances (billions)	$	6.5		$	7.7		$	(1.2)		26.0


('000s unless otherwise indicated)	3Q-2022			3Q-2021			Change			% Change
Revenue	$	24,870		$	26,894		$	(2,024)		(7.5)
Advisory fee revenue	$	24,865		$	26,890		$	(2,025)		(7.5)
Other	$	5		$	4		$	1		25.0

Total Expenses	$	16,548		$	17,482		$	(934)		(5.3)
Compensation	$	6,702		$	6,120		$	582		9.5
Non-compensation	$	9,846		$	11,362		$	(1,516)		(13.3)

Pre-tax Income	$	8,322		$	9,412		$	(1,090)		(11.6)

Compensation Ratio	26.9		%	22.8		%	410			18.0
Non-compensation Ratio	39.6		%	42.2		%	(260)			(6.2)
Pre-tax Margin	33.5		%	35.0		%	(1.5)		%	(4.3)

AUM (billions)	$	35.3		$	43.6		$	(8.3)		(19.0)


(Expressed in millions)
	For the Three Months Ended September 30, 2022
	Beginning Balance						Appreciation (Depreciation)		Ending Balance
Fund Type			Contributions		Redemptions/Profit Distribution
Traditional (1)	$	31,219	$	1,458	$	(1,477)	$	(1,287)	$	29,913
Institutional Fixed Income (2)	795		13		(20)		(18)		770
Alternative Investments:
Hedge funds (3)	3,249		25		(131)		(111)		3,032
Private Equity Funds (4)	1,441		22		(33)		(237)		1,193
Portfolio Enhancement Program (5)	366		1		(8)		—		359
	$	37,070	$	1,519	$	(1,669)	$	(1,653)	$	35,267


('000s)	3Q-2022			3Q-2021			Change			% Change
Revenues	$	90,947		$	128,585		$	(37,638)		(29.3)

Investment Banking	$	36,951		$	82,012		$	(45,061)		(54.9)
Advisory fees	$	29,270		$	51,815		$	(22,545)		(43.5)
Equities underwriting	$	5,061		$	26,348		$	(21,287)		(80.8)
Fixed income underwriting	$	2,111		$	3,140		$	(1,029)		(32.8)
Other	$	509		$	709		$	(200)		(28.2)

Sales and Trading	$	53,093		$	46,262		$	6,831		14.8
Equities	$	34,877		$	30,861		$	4,016		13.0
Fixed Income	$	18,216		$	15,401		$	2,815		18.3

Other	$	903		$	311		$	592		190.4

Total Expenses	$	88,546		$	110,697		$	(22,151)		(20.0)
Compensation	$	60,415		$	81,690		$	(21,275)		(26.0)
Non-compensation	$	28,131		$	29,007		$	(876)		(3.0)

Pre-tax Income	$	2,401		$	17,888		$	(15,487)		(86.6)

Compensation Ratio	66.4		%	63.5		%	290			4.6
Non-compensation Ratio	30.9		%	22.6		%	830			36.7
Pre-tax Margin	2.6		%	13.9		%	(11.3)		%	(81.3)


	(a)	(b)	(c)	(d)
Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs (2)

July 1 - 31, 2022 (1)	25,000	$35.00	25,000	540,778
August 1 - 31, 2022	109,693	$36.80	109,693	431,085
September 1 - 30, 2022	278,359	$32.61	278,359	152,726
Q3 2022 Total	413,052	$33.86	413,052	152,726

(1) On July 29, 2022, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 536,500 shares of the Company's Class A Stock.
(2) None of the foregoing authorizations is subject to expiration.