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Note 24 - Consolidating Financial Statements
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Condensed Financial Statements [Text Block]
24
.
Consolidating Financial Statements
 
 JMP Group Inc., a wholly-owned subsidiary of JMP Group LLC, is the primary obligor of the Company’s Senior Notes (Note
6
). In conjunction with the Reorganization Transaction, on 
January 1, 2015, 
JMP Group LLC and JMP Investment Holdings became guarantors of JMP Group Inc. The guarantee is full and unconditional. One of the non-guarantor subsidiaries, JMP Securities, is subject to certain regulations, which require the maintenance of minimum net capital. This requirement 
may 
limit the issuer’s access to this subsidiary’s assets.
 
The following condensed consolidating financial statements present the condensed consolidated statements of financial condition, condensed
consolidated statements of operations, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows of JMP Group LLC (parent company and guarantor), JMP Group Inc. (issuer), JMP Investment Holdings LLC (guarantor subsidiary), and the elimination of entries necessary to consolidate or combine the issuer with the guarantor and non-guarantor subsidiaries. These statements are presented in accordance with the disclosure requirements under SEC Regulation S-
X
Rule
3
-
10.
 
 
   
As of March 31, 2019
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
 
Assets
                                        
Cash and cash equivalents
   $
2,963
     $
6,103
     $
32,843
     $
-
     $
41,909
 
Restricted cash and deposits
    
-
      
1,221
      
-
      
-
      
1,221
 
Investment banking fees receivable, net of allowance for doubtful accounts
    
-
      
-
      
5,608
      
-
      
5,608
 
Marketable securities owned
    
48,088
      
666
      
43,510
      
(74
 )    
92,190
 
Other investments
    
4,391
      
1,497
      
17,559
      
-
      
23,447
 
Loans held for investment, net of allowance for loan losses
    
1,648
      
885
      
2,429
      
-
      
4,962
 
Interest receivable
    
27
      
7
      
636
      
(359
 )    
311
 
Fixed assets, net
    
-
      
-
      
2,575
      
-
      
2,575
 
Operating lease right-of-use asset
    
-
      
22,104
      
-
      
-
      
22,104
 
Other assets
    
(13,531
 )    
143,239
      
42,306
      
(144,576
 )    
27,438
 
Investment in subsidiaries
    
288,388
      
76,688
      
-
      
(365,076
 )    
-
 
Total assets
   $
331,974
     $
252,410
     $
147,466
     $
(510,085
 )   $
221,765
 
                                         
Liabilities and Equity
                                        
Liabilities:
                                        
Marketable securities sold, but not yet purchased, at fair value
   $
-
     $
-
     $
2,696
     $
-
     $
2,696
 
Accrued compensation
    
407
      
575
      
4,665
      
-
      
5,647
 
Interest payable
    
-
      
1,071
      
323
      
(359
 )    
1,035
 
Notes payable
    
127,603
      
-
      
17,763
      
(144,537
 )    
829
 
Bond payable, net of debt issuance costs
    
-
      
83,675
      
-
      
(75
 )    
83,600
 
Operating lease liability
    
-
      
27,470
      
-
      
-
      
27,470
 
Other liabilities
    
3,348
      
2,233
      
8,393
      
67
      
14,041
 
Total liabilities
   $
131,358
     $
115,024
     $
33,840
     $
(144,904
 )   $
135,318
 
                                         
Total shareholders' equity
    
200,616
      
137,386
      
114,024
      
(365,393
 )    
86,633
 
Nonredeemable Non-controlling Interest
   $
-
     $
-
     $
(398
 )   $
212
     $
(186
)
Total equity
   $
200,616
     $
137,386
     $
113,626
     $
(365,181
 )   $
86,447
 
Total liabilities and equity
   $
331,974
     $
252,410
     $
147,466
     $
(510,085
 )   $
221,765
 
 
 
   
As of December 31, 2018
  
   
Parent Companies
and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor
Subsidiaries
    
Eliminations
    
Consolidated JMP
Group LLC
 
Assets
                                        
Cash and cash equivalents
   $
4,863
     $
8,755
     $
57,309
     $
-
     $
70,927
  
Restricted cash and deposits
    
-
      
1,221
      
60,660
      
-
      
61,881
  
Investment banking fees receivable, net of allowance for doubtful accounts
    
-
      
-
      
6,647
      
-
      
6,647
  
Marketable securities owned, at fair value
    
10,027
      
-
      
8,921
      
(74
 )    
18,874
  
Other investments
    
10,922
      
1,785
      
13,262
      
(9,845
 )    
16,124
  
Loans held for investment, net of allowance for loan losses
    
1,139
      
-
      
28,469
      
-
      
29,608
  
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
    
-
      
-
      
1,161,463
      
-
      
1,161,463
  
Interest receivable
    
137
      
1
      
3,345
      
(479
 )    
3,004
  
Fixed assets, net
    
-
      
-
      
2,351
      
-
      
2,351
  
Other assets
    
(18,812
 )    
121,932
      
63,386
      
(146,143
 )    
20,363
  
Investment in subsidiaries
    
317,113
      
77,427
      
-
      
(394,540
 )    
-
  
Total assets
   $
325,389
     $
211,121
     $
1,405,813
     $
(551,081
 )   $
1,391,242
  
                                         
Liabilities and Equity
                                        
Liabilities:
                                        
Marketable securities sold, but not yet purchased, at fair value
   $
-
     $
-
     $
4,626
     $
-
     $
4,626
  
Accrued compensation
    
-
      
150
      
41,459
      
-
      
41,609
  
Asset-backed securities issued, net of debt issuance costs
    
-
      
-
      
1,122,187
      
(9,845
 )    
1,112,342
  
Interest payable
    
-
      
1,071
      
10,614
      
(475
 )    
11,210
  
Notes payable
    
127,603
      
-
      
17,763
      
(144,537
 )    
829
  
CLO warehouse credit facilities
    
-
      
-
      
22,500
      
-
      
22,500
  
Bond payable, net of debt issuance costs
    
-
      
83,572
      
-
      
(75
 )    
83,497
  
Other liabilities
    
2,700
      
7,603
      
8,620
      
(1,500
 )    
17,423
  
Total liabilities
   $
130,303
     $
92,396
     $
1,227,769
     $
(156,432
 )   $
1,294,036
  
                                         
Total shareholders' (deficit) equity
    
181,497
      
118,725
      
178,346
      
(394,861
 )    
83,707
  
Nonredeemable Non-controlling Interest
   $
13,589
     $
-
     $
(302
 )   $
212
     $
13,499
  
Total equity
   $
195,086
     $
118,725
     $
178,044
     $
(394,649
 )   $
97,206
  
Total liabilities and equity
   $
325,389
     $
211,121
     $
1,405,813
     $
(551,081
 )   $
1,391,242
  
 
 
   
For the Three Months Ended March 31, 2019
  
   
Parent
Companies and
Guarantors
    
Subsidiary
Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated
JMP Group LLC
 
Revenues
                                        
Investment banking
   $
-
     $
-
     $
11,879
     $
-
     $
11,879
  
Brokerage
    
-
      
-
      
4,535
      
-
      
4,535
  
Asset management fees
    
-
      
-
      
1,742
      
(39
 )    
1,703
  
Principal transactions
    
418
      
62
      
4,808
      
-
      
5,288
  
Loss on sale, payoff and mark-to-market of loans
    
-
      
-
      
(17
 )    
-
      
(17
 )
Net dividend income
    
102
      
13
      
181
      
-
      
296
  
Other income (loss)
    
29
      
-
      
(64
 )    
-
      
(35
 )
Equity earnings (losses) of subsidiaries
    
10,889
      
(735
 )    
-
      
(10,154
 )    
-
  
Non-interest revenues
    
11,438
      
(660
 )    
23,064
      
(10,193
 )    
23,649
  
                                         
Interest income
    
950
      
1,089
      
14,428
      
(2,176
 )    
14,291
  
Interest expense
    
(1,056
 )    
(2,066
 )    
(9,827
 )    
2,176
      
(10,773
 )
Net interest income (expense)
    
(106
 )    
(977
 )    
4,601
      
-
      
3,518
  
Total net revenues (losses) after provision for loan losses
    
11,332
      
(1,637
 )    
27,665
      
(10,193
 )    
27,167
  
                                         
Non-interest expenses
                                        
Compensation and benefits
    
581
      
1,044
      
15,597
      
-
      
17,222
  
Administration
    
146
      
109
      
1,713
      
(39
 )    
1,929
  
Brokerage, clearing and exchange fees
    
-
      
-
      
701
      
-
      
701
  
Travel and business development
    
38
      
8
      
975
      
-
      
1,021
  
Managed deal expense
    
-
      
-
      
533
      
-
      
533
  
Communications and technology
    
1
      
-
      
1,052
      
-
      
1,053
  
Occupancy
    
-
      
-
      
1,423
      
-
      
1,423
  
Professional fees
    
570
      
64
      
822
      
-
      
1,456
  
Depreciation
    
-
      
-
      
297
      
-
      
297
  
Other
    
278
      
-
      
217
      
-
      
495
  
Total non-interest expenses
    
1,614
      
1,225
      
23,330
      
(39
 )    
26,130
  
Net income (loss) before income tax expense
    
9,718
      
(2,862
 )    
4,335
      
(10,154
 )    
1,037
  
Income tax expense (benefit)
    
313
      
(4,899
 )    
484
      
-
      
(4,102
 )
Net income
    
9,405
      
2,037
      
3,851
      
(10,154
 )    
5,139
  
Less: Net income (loss) attributable to nonredeemable non-controlling interest
    
167
      
-
      
(97
 )    
-
      
70
  
Net income attributable to JMP Group LLC
   $
9,238
     $
2,037
     $
3,948
     $
(10,154
 )   $
5,069
  
 
 
   
For the Three Months Ended March 31, 2018
  
   
Parent Companies
and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor
Subsidiaries
    
Eliminations
    
Consolidated JMP
Group LLC
 
Revenues
                                        
Investment banking
  
$
-
    
$
-
    
$
20,662
    
$
-
    
$
20,662
  
Brokerage
    
-
      
-
      
4,664
      
-
      
4,664
  
Asset management fees
    
-
      
-
      
6,604
      
(179
)
    
6,425
  
Principal transactions
    
(3,176
)
    
(18
)
    
(426
)
    
-
      
(3,620
)
Loss on sale, payoff and mark-to-market of loans
    
-
      
-
      
(182
)
    
-
      
(182
)
Net dividend income
    
271
      
3
      
22
      
-
      
296
  
Other income
    
-
      
-
      
49
      
-
      
49
  
Equity earnings of subsidiaries
    
3,519
      
71
      
-
      
(3,590
)
    
-
  
Non-interest revenues
    
614
      
56
      
31,393
      
(3,769
)
    
28,294
  
                                         
Interest income (expense)
    
664
      
1,141
      
12,974
      
(2,069
)
    
12,710
  
Interest expense
    
(1,144
)
    
(2,292
)
    
(8,335
)
    
2,069
      
(9,702
)
Net interest income
    
(480
)
    
(1,151
)
    
4,639
      
-
      
3,008
  
                                         
Loss on repurchase, reissuance or early retirement of debt
    
-
      
-
      
(2,626
)
    
-
      
(2,626
)
Reversal (provision) for loan losses
    
15
      
-
      
(1,480
)
    
-
      
(1,465
)
                                         
Total net revenues after provision for loan losses
    
149
      
(1,095
)
    
31,926
      
(3,769
)
    
27,211
  
                                         
Non-interest expenses
                                        
Compensation and benefits
    
460
      
841
      
22,960
      
-
      
24,261
  
Administration
    
153
      
137
      
2,122
      
(179
)
    
2,233
  
Brokerage, clearing and exchange fees
    
-
      
-
      
777
      
-
      
777
  
Travel and business development
    
67
      
15
      
872
      
-
      
954
  
Managed deal expense
    
-
      
-
      
1,566
      
-
      
1,566
  
Communications and technology
    
-
      
2
      
1,060
      
-
      
1,062
  
Occupancy
    
-
      
-
      
1,117
      
-
      
1,117
  
Professional fees
    
672
      
84
      
1,149
      
-
      
1,905
  
Depreciation
    
-
      
-
      
264
      
-
      
264
  
Other
    
69
      
-
      
318
      
-
      
387
  
Total non-interest expenses
    
1,421
      
1,079
      
32,205
      
(179
)
    
34,526
  
Net loss before income tax expense
    
(1,272
)
    
(2,174
)
    
(279
)
    
(3,590
)
    
(7,315
)
Income tax expense (benefit)
    
-
      
(5,989
)
    
421
      
-
      
(5,568
)
Net income (loss)
    
(1,272
)
    
3,815
      
(700
)
    
(3,590
)
    
(1,747
)
Less: Net loss attributable to nonredeemable non-controlling interest
  
$
(1,045
)
    
-
      
(419
)
    
-
      
(1,464
)
Net income (loss) attributable to JMP Group LLC
    
(227
)
  
$
3,815
    
$
(281
)
  
$
(3,590
)
  
$
(283
)
 
 
   
For the Three Months Ended March 31, 2019
  
   
Parent Companies
and Guarantors
    
Subsidiary

Issuer
    
Non-Guarantor

Subsidiaries
   
Eliminations
   
Consolidated

JMP Group

LLC
 
Cash flows from operating activities:
                                        
Net cash provided by (used in) operating activities
  
$
15,198
    
$
(19,139
)
  
$
(29,283
)
  
$
(10,154
)
  
$
(43,378
)
                                         
Cash flows from investing activities:
                                        
Purchases of fixed assets
    
-
      
-
      
(637
)
    
-
      
(637
)
Purchases of other investments
    
(11
)
    
-
      
(833
)
    
-
      
(844
)
Sales or distributions from other investments
    
625
      
-
      
8,565
      
(878
)
    
8,312
  
Funding of loans collateralizing asset-backed securities issued
    
-
      
-
      
(35,153
)
    
-
      
(35,153
)
Funding of loans held for investment
    
(646
)
    
(876
)
    
(23,580
)
    
-
      
(25,102
)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued
    
-
      
-
      
23,806
      
-
      
23,806
  
Sale, payoff and principal receipts on loans held for investment
    
4
      
-
      
6,872
      
-
      
6,876
  
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries
    
-
      
-
      
(27,771
 )    
-
      
(27,771
 )
Investment in subsidiary
    
(13,228
)
    
739
      
-
      
12,489
      
-
  
Net cash provided by (used in) investing activities
  
$
(13,256
)
  
$
(137
)
  
$
(48,731
)
  
$
11,611
    
$
(50,513
)
                                         
Cash flows from financing activities:
                                        
Proceeds from drawdowns on CLO warehouse facilities
    
-
      
-
      
7,750
      
-
      
7,750
  
Repayment of asset-backed securities issued
    
-
      
-
      
(1,679
)
    
878
      
(801
)
Distributions and distribution equivalents paid on common shares and RSUs
    
(1,070
)
    
-
      
-
      
-
      
(1,070
)
Purchases of common shares for treasury
    
(669
)
    
-
      
-
      
-
      
(669
)
Distributions to non-controlling interest shareholders
    
(913
)
    
-
      
-
      
-
      
(913
)
Employee taxes paid on shares withheld for tax-withholding purposes
    
(84
)
    
-
      
-
      
-
      
(84
)
Capital contributions of parent
    
(1,111
)
    
16,624
      
(13,182
)
    
(2,331
)
    
-
  
Net cash provided by (used in) financing activities
  
$
(3,847
)
  
$
16,624
    
$
(7,111
)
  
$
(1,453
)
  
$
4,213
  
Net increase (decrease) in cash and cash equivalents
    
(1,905
)
    
(2,652
)
    
(85,125
)
    
4
      
(89,678
)
Cash, cash equivalents and restricted cash, beginning of period
    
4,863
      
9,976
      
117,969
      
-
      
132,808
  
Cash, cash equivalents and restricted cash, end of period
  
$
2,958
    
$
7,324
    
$
32,844
    
$
4
    
$
43,130
  
 
 
   
For the Three Months Ended March 31, 2018
  
   
Parent Companies
and Guarantors
    
Subsidiary

Issuer
    
Non-Guarantor

Subsidiaries
    
Eliminations
    
Consolidated

JMP Group

LLC
 
Cash flows from operating activities:
                                        
Net cash provided by (used in) operating activities
  
$
11,760
    
$
(566
)
  
$
(29,990
)
  
$
(3,586
)
  
$
(22,382
)
                                         
Cash flows from investing activities:
                                        
Purchases of fixed assets
    
-
      
-
      
(111
)
    
-
      
(111
)
Purchases of other investments
    
(5,021
)
    
(426
)
    
-
      
4,453
      
(994
)
Sales or distributions from other investments
    
228
      
-
      
540
      
-
      
768
  
Funding of loans collateralizing asset-backed securities issued
    
-
      
-
      
(72,642
)
    
-
      
(72,642
)
Funding of loans held for investment
    
-
      
-
      
(63,245
)
    
-
      
(63,245
)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued
    
-
      
-
      
82,909
      
-
      
82,909
  
Sale, payoff and principal receipts on loans held for investment
    
1,166
      
-
      
265
      
-
      
1,431
  
Investment in subsidiary
    
4,865
      
(1,194
)
    
-
      
(3,671
)
    
-
  
Net cash provided by (used in) investing activities
    
1,238
    
$
(1,620
)
  
$
(52,284
)
  
$
782
    
$
(51,884
)
                                         
Cash flows from financing activities:
                                        
Proceeds from issuance of repurchase agreement
  
$
3,878
      
-
      
-
      
-
      
3,878
  
Proceeds from drawdowns on line of credit
    
-
      
-
      
8,000
      
-
      
8,000
  
Proceeds from drawdowns of CLO warehouse facility
    
-
      
-
      
51,550
      
-
      
51,550
  
Proceeds from sale of note payable to affiliate
    
-
      
-
      
829
      
-
      
829
  
Payment of debt issuance costs
    
-
      
(122
)
    
(1,715
)
    
-
      
(1,837
)
Repayment of asset-backed securities issued
    
-
      
-
      
(332,100
)
    
-
      
(332,100
)
Proceeds of issuance from asset-backed securities issued
    
-
      
-
      
332,100
      
(4,453
)
    
327,647
  
Distributions and distribution equivalents paid on common shares and RSUs
    
(2,038
)
    
-
      
-
      
-
      
(2,038
)
Capital contributions of nonredeemable non-controlling interest holders
    
-
      
-
      
445
      
-
      
445
  
Purchases of common shares for treasury
    
(1,044
)
    
-
      
-
      
-
      
(1,044
)
Distributions to non-controlling interest shareholders
    
-
      
-
      
(108
)
    
-
      
(108
)
Capital contributions of parent
    
(23,322
)
    
2,149.00
      
13,916
      
7,257
      
-
  
Net cash provided by (used in) financing activities
  
$
(22,526
)
  
$
2,027
    
$
72,917
    
$
2,804
    
$
55,222
  
Net decrease in cash and cash equivalents
    
(9,528
)
    
(159
)
    
(9,357
)
    
-
      
(19,044
)
Cash, cash equivalents and restricted cash, beginning of period
    
13,632
      
6,290
      
117,399
      
-
      
137,321
  
Cash, cash equivalents and restricted cash, end of period
  
$
4,104
    
$
6,131
    
$
108,042
    
$
-
    
$
118,277