Note 5 - Investment Banking and New Issue and Net Trading

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Trading Activities [Text Block]

5. INVESTMENT BANKING AND NEW ISSUE AND NET TRADING

INVESTMENT BANKING AND NEW ISSUE

(Dollars in Thousands)

	Three Months Ended March 31, 2026
	Cash		Non-Cash		Total
CCM - Underwriting	$	17,395	$	5,717	$	23,112
CCM - Advisory and other new issue		12,105		5,255		17,360
Other - Origination		-		-		-
Total	$	29,500	$	10,972	$	40,472
Gains / (losses) on CCM financial instruments received as non-cash consideration						5,239
Investment banking and new issue					$	45,711
	Three Months Ended March 31, 2025
	Cash		Non-Cash		Net
CCM - Underwriting	$	2,225	$	1,634	$	3,859
CCM - Advisory and other new issue		12,366		17,014		29,380
Other - Origination		-		-		-
Total	$	14,591	$	18,648	$	33,239
Gains / (losses) on CCM financial instruments received as non-cash consideration						(13,075	)
Investment banking and new issue					$	20,164

As of March 31, 2026, the Company had $41,995 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 March 31, 2026, the Company has also accrued $24,592 in compensation to employees related to these amounts. The amount finally due to the employees is based on the final monetized amount (see note 11). The amount of compensation accrued presumes these investments are monetized for their carrying amount.  Accordingly, if the $41,995 of other investments, at fair value were liquidated for $0, the net loss to the Company would be $17,403.

Net trading consisted of the following in the periods presented.

NET TRADING

(Dollars in Thousands)

	Three Months Ended March 31,
	2026			2025
Net realized gains (losses) - trading inventory	$	7,471		$	4,228
Net unrealized gains (losses) - trading inventory		(831	)		625
Net gains and losses		6,640			4,853
Interest income- trading inventory		792			830
Interest income-reverse repos		4,062			9,541
Interest income		4,854			10,371
Interest expense-repos		(3,708	)		(8,502	)
Interest expense-margin payable		(117	)		(651	)
Interest expense		(3,825	)		(9,153	)
Other trading revenue		5,531			3,140
Net trading	$	13,200		$	9,211

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).