Asset Management - As of September 30, 2024, the company had approximately $2.37 billion in assets under management (AUM), with 41% in collateralized debt obligations (CDOs) [338] - A significant portion of the company's asset management revenue is derived from CDO management, which has been adversely affected by the decline in CDO assets [349] - The total assets under management (AUM) reached $2,365,525 as of September 30, 2024, compared to $2,013,372 as of September 30, 2023, reflecting an increase of $352,153 [373] - The mortgage group's revenue is highly dependent on U.S. mortgage origination volumes, which are influenced by interest rates and the overall health of the U.S. economy [357] Revenue and Income - Revenues increased by $12,540, or 26%, to $61,057 for the nine months ended September 30, 2024, compared to $48,517 for the same period in 2023 [364] - Net trading revenue rose by $4,345, or 19%, to $27,462 for the nine months ended September 30, 2024, compared to $23,117 for the same period in 2023 [368] - Asset management fees increased by $1,524, or 28%, to $6,942 for the nine months ended September 30, 2024, compared to $5,418 for the same period in 2023 [374] - New issue and advisory revenues surged by $43,805, or 459%, to $53,347 for the nine months ended September 30, 2024, compared to $9,542 for the same period in 2023 [364] - Net income attributable to Cohen & Company Inc. was $1,824 for the nine months ended September 30, 2024, compared to a net loss of $9,661 for the same period in 2023, representing a change of $11,485 [366] - Income from equity method affiliates increased significantly to $22,366 for the nine months ended September 30, 2024, compared to a loss of $1,608 for the same period in 2023, a change of $23,974 [366] Operating Expenses - Operating expenses totaled $63,577 for the nine months ended September 30, 2024, an increase of $10,472, or 20%, from $53,105 for the same period in 2023 [366] - Compensation and benefits increased by $7,696, or 22%, to $43,453 for the nine months ended September 30, 2024, compared to $35,757 for the same period in 2023 [392] - Business development, occupancy, and equipment expenses increased by $712, or 18%, to $4,599 for the nine months ended September 30, 2024, compared to $3,887 for the same period in 2023 [394] - Professional fee and other operating expenses increased by $1,987, or 32%, to $8,138 for the nine months ended September 30, 2024, compared to $6,151 for the same period in 2023 [395] Market Conditions - The company has not completed a new securitization since 2008, leading to a decline in asset management revenue from historical highs due to asset maturities and defaults [349] - Margin pressures in the fixed income brokerage business have increased due to heightened competition and declining market activity, leading to expectations of continued margin compression [355] - Rising interest rates have created instability in equity markets, negatively impacting equity financing and business combination volumes [358] Trading Activities - The company’s trading activities are sensitive to market movements, with revenue generated from proprietary trading and riskless trades [346] - The principal investing segment has been significantly impacted by declines in equity prices of SPACs, resulting in substantial principal transaction losses during 2023 and the first nine months of 2024 [353] - The SPAC market activities have become a significant part of the principal investing segment, with the company sponsoring multiple SPACs since 2018 [351] Cash Flow and Capital Management - Cash flow from operating activities for the nine months ended September 30, 2024, was $5,042, a significant recovery from $(36,177) in the same period of 2023 [476] - Cash and cash equivalents increased to $14,290 as of September 30, 2024, up from $10,650 at the end of 2023, reflecting an increase of $3,640 [479] - The company has seven primary uses for capital, including funding operations, expansion, investments, mergers, dividends, stock repurchases, and debt repayment [477] Risk Management - The company is subject to counterparty risk primarily in collateralized securities transactions and TBA activities [530] - The company faces general settlement risk in its fixed income and equity trading activities, which may lead to losses if a counterparty fails to settle a trade [532] - The company emphasizes the importance of liquidity management in its trading operations to safeguard against settlement risks [532] - Ongoing evaluations of counterparty creditworthiness are crucial for maintaining trading integrity and minimizing losses [532]

Financial Performance - Net income attributable to Cohen & Company Inc. was $2.2 million, or $1.31 per diluted share, for Q3 2024, compared to a net loss of $2.3 million, or $1.47 per diluted share, for Q2 2024[4]. - Total revenues for Q3 2024 were $31.7 million, up from $10.8 million in the prior quarter and $17.1 million in the prior year quarter[5]. - New issue and advisory revenue was $22.5 million for Q3 2024, an increase of $16.0 million from the prior quarter and $15.2 million from the prior year quarter[6]. - Adjusted pre-tax income was $7.7 million for Q3 2024, compared to an adjusted pre-tax loss of $8.6 million for Q2 2024[4]. - Total revenues for the three months ended September 30, 2024, were $31.695 million, a significant increase from $17.121 million for the same period in 2023, representing an 84.9% year-over-year growth[19]. - Net income attributable to Cohen & Company Inc. for the three months ended September 30, 2024, was $2.150 million, compared to a net loss of $2.349 million for the same period in 2023[20]. - Adjusted pre-tax income for the three months ended September 30, 2024, was $7.738 million, a recovery from an adjusted loss of $8.582 million in the same quarter of the previous year[21]. - The company reported a basic earnings per share of $1.32 for the three months ended September 30, 2024, compared to a loss per share of $1.45 for the same period in 2023[20]. Operating Expenses - Compensation and benefits expense increased by $7.2 million from the prior quarter to $17.9 million in Q3 2024[8]. - Total operating expenses for the three months ended September 30, 2024, were $24.473 million, up from $21.225 million in the same quarter of 2023, reflecting a 10.6% increase[19]. Assets and Equity - As of September 30, 2024, total equity was $100.6 million, up from $91.8 million as of December 31, 2023[13]. - Total assets increased to $818,011,000 as of September 30, 2024, up from $772,761,000 on December 31, 2023, representing a growth of approximately 5.9%[24]. - Total stockholders' equity rose to $100,625,000, compared to $91,797,000, indicating an increase of about 9.9%[24]. Cash and Liabilities - Cash and cash equivalents rose to $14,290,000, compared to $10,650,000, marking an increase of about 34.5%[24]. - Total liabilities increased to $717,386,000, up from $680,964,000, reflecting a rise of approximately 5.3%[24]. - Payables to brokers, dealers, and clearing agencies decreased significantly to $53,674,000 from $111,085,000, a reduction of about 51.7%[24]. - Securities sold under agreements to repurchase increased to $545,993,000 from $408,203,000, an increase of approximately 33.8%[24]. Revenue Streams - Net trading revenue was $8.8 million for Q3 2024, comparable to the prior quarter and up $1.3 million from the prior year quarter[5]. - The company experienced a net trading revenue of $8.816 million for the three months ended September 30, 2024, slightly up from $7.491 million in the same period last year[19]. - Asset management revenue increased to $2.147 million for the three months ended September 30, 2024, compared to $1.788 million for the same period in 2023, marking a 20.1% increase[19]. - The company’s principal transactions and other revenue showed a loss of $1.727 million for the three months ended September 30, 2024, an improvement from a loss of $6.578 million in the same quarter of 2023[19]. Dividends and Future Outlook - The Company declared a quarterly dividend of $0.25 per share, payable on December 5, 2024[14]. - The company anticipates continued fluctuations in revenue and operating results due to the nature of its business, suggesting that annual results may be the most meaningful gauge for investors[18]. Other Financial Metrics - Loss from equity method affiliates was $0.7 million for Q3 2024, compared to a loss of $6.0 million in the prior quarter[10]. - The Company managed approximately $2.4 billion in primarily fixed income assets as of September 30, 2024[16]. - The investment in equity method affiliates increased to $26,153,000 from $14,241,000, a growth of approximately 83.9%[24]. - Adjusted pre-tax income (loss) is presented as a useful measure of performance, excluding certain GAAP calculations[27]. - The company reported an increase in accumulated other comprehensive loss to $(948,000) from $(944,000)[24]. - The company continues to evaluate performance using adjusted pre-tax income (loss) and related per diluted share amounts[28].

Core Viewpoint - Cohen & Company Inc. reported strong financial results for Q3 2024, showing significant revenue growth and a return to profitability compared to previous quarters and the same period last year [1][3][4]. Financial Performance - Total revenues for Q3 2024 were $31.7 million, a substantial increase from $10.8 million in Q2 2024 and $17.1 million in Q3 2023 [2][4]. - Net income attributable to Cohen & Company Inc. was $2.2 million, or $1.31 per diluted share, compared to a net loss of $2.3 million, or $1.47 per diluted share, in Q2 2024 and a net loss of $0.4 million, or $0.28 per diluted share, in Q3 2023 [4][15]. - Adjusted pre-tax income for Q3 2024 was $7.7 million, or $1.34 per diluted share, compared to an adjusted pre-tax loss of $8.6 million in Q2 2024 and a loss of $8.4 million in Q3 2023 [4][18]. Revenue Breakdown - Net trading revenue was $8.8 million, consistent with the prior quarter and up from $7.5 million in the prior year [2][4]. - Asset management revenue reached $2.1 million, stable compared to the previous quarter and up from $1.8 million year-over-year [2][4]. - New issue and advisory revenue surged to $22.5 million, up from $6.5 million in Q2 2024 and $7.2 million in Q3 2023 [2][4]. Operating Expenses - Compensation and benefits expenses increased to $17.9 million in Q3 2024, up from $10.7 million in Q2 2024 and $15.2 million in Q3 2023 [2][4]. - Total operating expenses for Q3 2024 were $24.5 million, compared to $17.2 million in Q2 2024 and $21.2 million in Q3 2023 [12]. Equity and Dividends - Total equity as of September 30, 2024, was $100.6 million, an increase from $91.8 million at the end of 2023 [5][21]. - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on December 5, 2024 [5][6]. Future Outlook - The CEO expressed confidence in the company's future earnings potential and highlighted a robust pipeline for the Capital Markets segment, expecting consistent production through the end of the year [3][4].

Core Points - Cohen & Company Inc. will release its financial results for Q3 2024 on November 4, 2024, and will host a conference call at 10:00 a.m. ET to discuss these results [1] - The conference call will be accessible via webcast and can also be listened to with operator assistance through specific phone numbers [2] Company Overview - Cohen & Company is a financial services firm that offers a range of capital markets and asset management services, operating through segments such as Capital Markets, Asset Management, and Principal Investing [3] - The Capital Markets segment includes fixed income sales, trading, repo financing, new issue placements, and advisory services, primarily through subsidiaries in the U.S. and Europe [3] - As of September 30, 2024, the company managed approximately $2.4 billion in fixed income assets across various asset classes, including U.S. and European trust preferred securities, subordinated debt, and corporate loans [3] - The Principal Investing segment focuses on investments related to its SPAC franchise and other investments aimed at earning returns rather than supporting trading or capital markets activities [3]

Financial Data and Key Metrics Changes - The net loss attributable to Cohen & Company Inc. was $2.3 million for Q2 2024, or $1.47 per fully diluted share, compared to a net income of $2 million for the prior quarter and a net loss of $6.6 million for the same quarter last year [6] - Adjusted pretax loss was $8.6 million for the quarter, compared to adjusted pretax income of $7.7 million for the prior quarter and an adjusted pretax loss of $1.6 million for the same quarter last year [6] - Total equity at the end of the quarter was $95.6 million, up from $91.8 million at the end of 2023 [11] Business Line Data and Key Metrics Changes - Advisory revenues from Cohen & Company Capital Markets (CCM) were $6.4 million, with a focus on two SPAC IPOs [4] - New issue and advisory revenue was $6.5 million, a decrease of $17.9 million from the first quarter but an increase of $5.1 million from the year-ago quarter [7] - Net trading revenue was $8.8 million, down $1.1 million from the first quarter but up $1.4 million from the second quarter of 2023 [7] - Asset management revenue totaled $2.1 million, down $600,000 from the prior quarter but up $500,000 from the prior year quarter [7] - Principal transactions and other revenue was negative $6.6 million, primarily due to unfavorable mark-to-market adjustments on principal investments [8] Market Data and Key Metrics Changes - The company experienced volatility in revenue due to a limited number of engagements, which can lead to significant fluctuations in revenue recognized [7] - The decline in equity value of post-business combination SPACs negatively impacted the company's principal transactions revenue [8] Company Strategy and Development Direction - The company intends to continue adding investment banking talent to its CCM team and is optimistic about its pipeline [4] - The focus remains on enhancing long-term sustained value for stockholders, including the continued payment of quarterly dividends [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of ongoing unfavorable mark-to-market adjustments but expressed confidence in future earnings potential [5] - The company plans to evaluate its dividend policy each quarter, with future decisions potentially influenced by operating results and capital needs [11] Other Important Information - Compensation and benefits expense for the quarter was $10.7 million, down from the prior quarter but up from the prior year quarter [9] - The number of employees increased to 121 as of the end of the quarter, compared to 116 at the end of March [9] Q&A Session Summary - The call concluded without any specific questions or answers being recorded, as the operator indicated the end of the conference [12]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32026 COHEN & COMPANY INC. (Exact name of registrant as specified in its charter) Maryland 16-1685692 (State or other jur ...

Exhibit 99.1 COHEN & COMPANY REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Board Declares Quarterly Dividend of $0.25 per Share Philadelphia and New York, August 5, 2024 – Cohen & Company Inc. (NYSE American: COHN), a financial services firm specializing in an expanding range of capital markets and asset management services, today reported financial results for its second quarter ended June 30, 2024. Summary Operating Results | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------- ...

PHILADELPHIA and NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Cohen & Company Inc. (NYSE American: COHN), a financial services firm specializing in an expanding range of capital markets and asset management services, today reported financial results for its second quarter ended June 30, 2024. Summary Operating Results | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------|------------|-------|-------|--------------- ...

PHILADELPHIA and NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Cohen & Company Inc. (NYSE American: COHN) will release its financial results for the second quarter 2024 on Monday, August 5, 2024. The Company will host a conference call at 11:00 a.m. Eastern Time (ET) that day to discuss these results. The conference call will be available via webcast. Interested parties can access the webcast by clicking the webcast link on the Company's homepage at www.cohenandcompany.com. Those wishing to listen to the conf ...

Table of Contents 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 on our agency repo business (see note 10). Margin payable represents amounts borrowed from Pershing, LLC to finance the Company's trading portfolio. See note 5 for interest expense incurred on margin payable. All of the Company's securities included in investmen ...