Oppenheimer(OPY) - 2025 Q1 - Quarterly Report

Financial Performance - The Company reported net income of $30.7 million or $2.93 basic earnings per share for Q1 2025, compared to net income of $26.1 million or $2.50 per share for Q1 2024, representing a 17.7% increase in net income [183]. - Revenue for Q1 2025 was $367.8 million, an increase of 4.2% from $353.1 million in Q1 2024 [183]. - Wealth Management revenue was $242.0 million, a 1.7% increase year-over-year, while pre-tax income decreased by 10.5% to $67.9 million [188]. - Capital Markets revenue increased by 10.0% to $123.3 million, despite challenging market conditions [187]. - Revenue for Q1 2025 was $241.986 million, a 1.7% increase from $237.961 million in Q1 2024 [189]. - Advisory fee revenue increased by 12.2% to $128.792 million, driven by higher assets under management (AUM) during the billing period [191]. - Pre-tax income decreased by 10.5% to $67.864 million, resulting in a pre-tax margin of 28.0%, down from 31.8% [189]. Assets Management - Assets under management (AUM) totaled $48.9 billion as of March 31, 2025, up 4.9% from $46.6 billion a year earlier [184]. - Assets under administration (AUA) reached $129.9 billion, a 4.0% increase from $124.9 billion in the previous year [184]. - Assets under administration increased by 4.0% to $129.9 billion, while assets under management rose by 4.9% to $48.9 billion [189]. Expenses - Total expenses rose by 7.4% to $174.122 million, with compensation expenses increasing by 3.5% and non-compensation expenses rising by 16.9% [189]. - Compensation expenses rose by 2.4% to $227.1 million, driven by inflationary pressures on wages [184]. - Non-compensation expenses increased by 5.7% to $99.4 million, primarily due to higher interest and technology-related costs [184]. Strategic Focus - The Company is focused on expanding its wealth management business through strategic hiring and targeted acquisitions [173]. - The Company aims to improve its technology platform to enhance client service and remain competitive while managing expenses [174]. Financing and Loans - The company had an outstanding bank call loan balance of $439.6 million as of March 31, 2025, compared to $252.1 million at December 31, 2024 [200]. - As of March 31, 2025, the company had $359.5 million in bank call loans, an increase from $252.1 million at December 31, 2024 [207]. - The average daily bank loan outstanding for the three months ended March 31, 2025, was $277.3 million, compared to $57.8 million for the same period in 2024 [207]. - Securities loan balances totaled $360.9 million as of March 31, 2025, up from $235.5 million at December 31, 2024 [208]. - The average daily securities loan balances for the three months ended March 31, 2025, were $359.2 million, compared to $303.4 million for the same period in 2024 [208]. - The gross balances of reverse repurchase agreements and repurchase agreements were $292.9 million and $1,159.3 million, respectively, as of March 31, 2025 [211]. - The average daily balance of reverse repurchase agreements was $370.5 million for the three months ended March 31, 2025, compared to $122.9 million for the same period in 2024 [211]. - Cash provided by financing activities for the three months ended March 31, 2025, was $95,645 thousand, an increase from $78,132 thousand in 2024 [217]. - The company has $171.5 million in operating lease obligations, with an estimated cash requirement of $8.8 million for interest expense for the remainder of 2025 [216]. Regulatory Compliance - As of March 31, 2025, all active regulated subsidiaries had net capital in excess of minimum requirements [231]. - The SEC's new rule amendments will require the company to perform daily computations of net cash owed to customers starting December 31, 2025, potentially increasing staffing levels [232].