10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q
 

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2019 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: 001-36802

JMP Group LLC

(Exact name of registrant as specified in its charter)

Delaware	47-1632931
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

600 Montgomery Street, Suite 1100, San Francisco, California 94111

(Address of principal executive offices)

Registrant’s telephone number: (415) 835-8900

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading symbol	Name of Each Exchange on Which Registered
Shares representing limited liability company interests in JMP Group LLC	JMP	New York Stock Exchange
JMP Group Inc. 8.00% Senior Notes due 2023	JMPB	New York Stock Exchange
JMP Group Inc. 7.25% Senior Notes due 2027	JMPD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

JMP Group LLC shares representing limited liability company interests outstanding as of August 05, 2019: 19,324,427.

Table of Contents

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements - JMP Group LLC	4
	Consolidated Statements of Financial Condition – June 30, 2019 (Unaudited) and December 31, 2018	4
	Consolidated Statements of Operations - For the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	6
	Consolidated Statements of Comprehensive Income - For the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	7
	Consolidated Statements of Changes in Equity - For the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	8
	Consolidated Statements of Cash Flows - For the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)	9
	Notes to Consolidated Financial Statements (Unaudited)	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
PART II.	OTHER INFORMATION	63
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64
SIGNATURES		65
EXHIBIT INDEX		66

2

 AVAILABLE INFORMATION

JMP Group LLC is required to file current, annual and quarterly reports, proxy statements and other information required by the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the Securities and Exchange Commission (the "SEC"). The SEC maintains an internet website at http://www.sec.gov, from which interested persons can electronically access JMP Group LLC’s SEC filings.

JMP Group LLC provides its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, Forms 3, 4 and 5 filed by or on behalf of directors, executive officers and certain large shareholders, and any amendments to those documents filed or furnished pursuant to the Exchange Act free of charge on the Investor Relations section of its website located at http://www.jmpg.com. These filings will become available as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. From time to time JMP Group LLC may use its website as a channel of distribution of material company information.

JMP Group LLC also makes available, in the Investor Relations section of its website and will provide print copies to shareholders upon request, (i) its corporate governance guidelines, (ii) its code of business conduct and ethics, and (iii) the charters of the audit, compensation, and corporate governance and nominating committees of its board of directors. These documents, as well as the information on the website, are not intended to be part of this quarterly report on Form 10-Q (the “Quarterly Report”) and inclusions of the internet address in this Quarterly Report. JMP Group LLC also uses the Investor Relations section of its website as a means of complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor JMP Group LLC’s Investor Relations section of its website in addition to following JMP Group LLC’s press releases, SEC filings, and public conference calls and webcasts.

3

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

JMP Group LLC

Consolidated Statements of Financial Condition

(Unaudited)

(Dollars in thousands, except per share data)

	June 30, 2019			December 31, 2018
Assets
Cash and cash equivalents	$	52,901		$	70,927
Restricted cash		1,221			61,881
Investment banking fees receivable		6,169			6,647
Marketable securities owned (includes $68,151 and $18,874 at fair value at June 30, 2019 and December 31, 2018, respectively)		81,499			18,874
Other investments (includes $14,009 and $9,913 at fair value at June 30, 2019 and December 31, 2018, respectively)		32,112			16,124
Loans held for investment, net of allowance for loan losses		5,292			29,608
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		-			1,161,463
Interest receivable		386			3,004
Fixed assets, net		2,518			2,351
Operating lease right-of-use asset		21,096			-
Other assets		32,779			20,363
Total assets	$	235,973		$	1,391,242
Liabilities and Equity
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	$	2,724		$	4,626
Accrued compensation		13,672			41,609
Asset-backed securities issued (net of debt issuance costs of $8,979 at December 31, 2018)		-			1,112,342
Interest payable		1,153			11,210
Note payable		15,812			829
CLO warehouse credit facilities		-			22,500
Bond payable (net of debt issuance costs of $2,219 and $2,428 at June 30, 2019 and December 31, 2018, respectively)		83,706			83,497
Operating lease liability		26,482			-
Other liabilities		17,252			17,423
Total liabilities		160,801			1,294,036
Commitments and Contingencies (Note 17)
JMP Group LLC Shareholders' Equity
Common shares, $0.001 par value, 100,000,000 shares authorized; 22,780,052 shares issued at both June 30, 2019 and December 31, 2018; 19,302,478 and 21,319,720 shares outstanding at June 30, 2019 and December 31, 2018, respectively		23			23
Additional paid-in capital		134,332			134,129
Treasury shares at cost, 3,477,574 and 1,460,332 shares at June 30, 2019 and December 31, 2018, respectively		(15,876	)		(7,932	)
Accumulated other comprehensive loss		(2,569	)		-
Accumulated deficit		(40,469	)		(42,513	)
Total JMP Group LLC shareholders' equity		75,441			83,707
Nonredeemable Non-controlling Interest		(269	)		13,499
Total equity		75,172			97,206
Total liabilities and equity	$	235,973		$	1,391,242

See accompanying notes to consolidated financial statements.

4

JMP Group LLC

Consolidated Statements of Financial Condition - (Continued)

(Unaudited)

(Dollars in thousands, except per share data)

Assets and liabilities of consolidated variable interest entities (“VIEs”) included in total assets and total liabilities above:

	June 30, 2019		December 31, 2018
Restricted cash	$	-	$	50,456
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		-		1,161,463
Interest receivable		-		2,711
Other investments		-		821
Other assets		-		67
Total assets of consolidated VIEs	$	-	$	1,215,518
Asset-backed securities issued, net of debt issuance costs		-		1,122,187	(1)
Interest payable		-		10,132
Other liabilities		-		1,877
Total liabilities of consolidated VIEs	$	-	$	1,134,196

(1) Includes $9.8 million of debt held by the Company which is eliminated on the Consolidated Statements of Financial Condition.

The asset-backed securities issued (“ABS”) by the VIE are limited recourse obligations payable solely from cash flows of the loans collateralizing them and related collection and payment accounts pledged as security. Accordingly, only the assets of the VIE can be used to settle the obligations of the VIE.

See accompanying notes to consolidated financial statements.

5

JMP Group LLC

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues
Investment banking	$	17,736		$	28,562		$	29,615		$	49,224
Brokerage		4,657			5,447			9,192			10,111
Asset management fees		2,354			5,378			4,057			11,803
Principal transactions		1,423			1,684			6,711			(1,936	)
Loss on sale, payoff and mark-to-market of loans		(21	)		(150	)		(38	)		(332	)
Net dividend income		293			319			589			615
Other income		793			311			758			360
Non-interest revenues		27,235			41,551			50,884			69,845
Interest income		2,772			15,669			17,063			28,379
Interest expense		(1,939	)		(11,634	)		(12,712	)		(21,336	)
Net interest income		833			4,035			4,351			7,043
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(2,668	)
Provision for loan losses		-			(1,280	)		-			(2,745	)
Total net revenues after provision for loan losses		28,068			44,264			55,235			71,475
Non-interest expenses
Compensation and benefits		19,945			29,138			37,167			53,399
Administration		2,748			2,711			4,677			4,944
Brokerage, clearing and exchange fees		733			788			1,434			1,565
Travel and business development		1,347			1,202			2,368			2,156
Managed deal expenses		1,334			2,348			1,867			3,914
Communications and technology		1,127			1,047			2,180			2,109
Occupancy		1,409			1,143			2,832			2,260
Professional fees		821			1,138			2,277			3,043
Depreciation		311			287			608			551
Other		5			776			500			1,163
Total non-interest expenses		29,780			40,578			55,910			75,104
Net income (loss) before income tax expense		(1,712	)		3,686			(675	)		(3,629	)
Income tax expense (benefit)		(517	)		4,895			(4,619	)		(673	)
Net income (loss)		(1,195	)		(1,209	)		3,944			(2,956	)
Less: Net income (loss) attributable to nonredeemable non-controlling interest		(83	)		779			(13	)		(685	)
Net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957		$	(2,271	)
Net income (loss) attributable to JMP Group LLC per common share:
Basic	$	(0.05	)	$	(0.09	)	$	0.19		$	(0.11	)
Diluted	$	(0.05	)	$	(0.09	)	$	0.19		$	(0.11	)
Weighted average common shares outstanding:
Basic		20,772			21,537			21,028			21,601
Diluted		20,772			21,537			21,151			21,601

See accompanying notes to consolidated financial statements.

6

JMP Group LLC

Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net income (loss)	$	(1,195	)	$	(1,209	)	$	3,944		$	(2,956	)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of tax		(1,787	)		-			(2,569	)		-
Comprehensive income (loss) attributable to JMP Group LLC		(2,982	)		(1,209	)		1,375			(2,956	)
Less: Comprehensive income (loss) attributable to non-controlling interest		(83	)		779			(13	)		(685	)
Comprehensive income (loss) attributable to JMP Group LLC	$	(2,899	)	$	(1,988	)	$	1,388		$	(2,271	)

See accompanying notes to consolidated financial statements.

7

JMP Group LLC

Consolidated Statements of Changes in Equity

(Unaudited)

(In thousands)

	JMP Group LLC's Equity
								Additional						Accumulated			Nonredeemable
	Common Shares				Treasury			Paid-In			Accumulated			Other Comprehensive			Non-controlling
	Shares		Amount		Shares			Capital			Deficit			Loss			Interest			Total Equity
Balance, December 31, 2018		22,780	$	23	$	(7,932	)	$	134,129		$	(42,513	)	$	-		$	13,499		$	97,206
Net income (loss)		-		-		-			-			3,957			-			(13	)		3,944
Additional paid-in capital - share-based compensation		-		-		-			321			-			-			-			321
Distributions and distribution equivalents declared on common shares and restricted share units		-		-		-			-			(1,913	)		-			-			(1,913	)
Purchases of shares of common shares for treasury		-		-		(8,797	)		-			-			-			-			(8,797	)
Reissuance of shares of common shares from treasury		-		-		853			(118	)		-			-			-			735
Distributions to non-controlling interest holders		-		-		-			-			-			-			(913	)		(913	)
Derecognition of non-controlling interest due to deconsolidation		-		-		-			-			-			-			(12,842	)		(12,842	)
Unrealized loss on available-for-sale securities, net of tax		-		-		-			-			-			(2,569	)		-			(2,569	)
Balance, June 30, 2019		22,780	$	23	$	(15,876	)	$	134,332		$	(40,469	)	$	(2,569	)	$	(269	)	$	75,172

	JMP Group LLC's Equity
								Additional						Accumulated		Nonredeemable
	Common Shares				Treasury			Paid-In			Accumulated			Other Comprehensive		Non-controlling
	Shares		Amount		Shares			Capital			Deficit			Loss		Interest			Total Equity
Balance, December 31, 2017		22,780	$	23	$	(5,955	)	$	134,719		$	(32,452	)	$	-	$	13,844		$	110,179
Net loss		-		-		-			-			(2,271	)		-		(685	)		(2,956	)
Additional paid-in capital - share-based compensation		-		-		-			484			-			-		-			484
Distributions and distribution equivalents declared on common shares and restricted share units		-		-		-			-			(3,975	)		-		-			(3,975	)
Purchases of shares of common shares for treasury		-		-		(1,556	)		-			-			-		-			(1,556	)
Reissuance of shares of common shares from treasury		-		-		293			-			-			-		-			293
Purchase of subsidiary shares from non-controlling interest holders		-		-		-			(656	)		-			-		656			-
Distributions to non-controlling interest holders		-		-		-			-			-			-		(649	)		(649	)
Capital contributions from non-controlling interest holders		-		-		-			-			-			-		449			449
Balance, June 30, 2018		22,780	$	23	$	(7,218	)	$	134,547		$	(38,698	)	$	-	$	13,615		$	102,269

See accompanying notes to consolidated financial statements.

8

JMP Group LLC

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	3,944		$	(2,956	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Provision for loan losses		-			2,745
Loss on sale and payoff of loans and mark-to-market of loans		38			332
Loss on repurchase, reissuance or early retirement of debt		-			2,668
Change in other investments:
(Income) loss from investments in equity method investees		(621	)		387
Unrealized gain on other equity investments		(297	)		(136	)
Unrealized (gain) loss on other investments		(1,039	)		197
Depreciation and amortization		428			480
Share-based compensation expense		1,057			778
Gain on deconsolidation		(3,520	)		-
Other, net		94			296
Net change in operating assets and liabilities:
Increase in interest receivable		(4,913	)		(312	)
Decrease (increase) in receivables		478			(8,269	)
Decrease (increase) in marketable securities		10,781			(630	)
Decrease (increase) in other assets		(12,518	)		5,551
Decrease in marketable securities sold, but not yet purchased		(1,902	)		(2,289	)
(Decrease) increase in interest payable		(3,430	)		2,342
Decrease in accrued compensation		(27,670	)		(17,842	)
Increase in other liabilities		7,951			2,464
Net cash used in operating activities		(31,139	)		(14,194	)
Cash flows from investing activities:
Purchases of fixed assets		(904	)		(580	)
Purchases of other investments		(9,630	)		(1,219	)
Sales or distributions from other investments		10,364			11,172
Funding of loans collateralizing asset-backed securities issued		(35,153	)		(193,024	)
Funding of loans held for investment		(25,587	)		(225,351	)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued		23,806			172,415
Sale, payoff and principal receipts on loans held for investment		7,020			22,106
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries		(27,771	)		-
Net cash used in investing activities		(57,855	)		(214,481	)

See accompanying notes to consolidated financial statements.

9

JMP Group LLC

Consolidated Statements of Cash Flows - (Continued)

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2019			2018
Cash flows from financing activities:
Proceeds from issuance of repurchase agreement		-			3,878
Repayment of repurchase agreement		-			(3,878	)
Proceeds from drawdowns on line of credit		16,583			18,000
Proceeds from drawdowns on CLO warehouse facilities		7,750			177,250
Proceeds from sale of note payable to affiliate		-			829
Payment of debt issuance costs		-			(1,857	)
Repayment of line of credit		(1,600	)		-
Repayment of asset-backed securities issued		(801	)		(332,100	)
Proceeds of issuance from asset-backed securities issued		-			327,605
Reissuance of asset-back securities		-			4,453
Distributions and distribution equivalents paid on common shares and RSUs		(1,913	)		(3,975	)
Capital contributions of nonredeemable non-controlling interest holders		-			449
Purchase of common shares for treasury		(8,614	)		(1,525	)
Distributions to non-controlling interest shareholders		(913	)		(649	)
Employee taxes paid on shares withheld for tax-withholding purposes		(184	)		(31	)
Net cash provided by financing activities		10,308			188,449
Net decrease in cash, cash equivalents, and restricted cash		(78,686	)		(40,226	)
Cash, cash equivalents and restricted cash, beginning of period		132,808			137,321
Cash, cash equivalents and restricted cash, end of period	$	54,122		$	97,095
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	16,142		$	18,994
Cash paid during the period for taxes	$	2,060		$	1,660
Non-cash investing and financing activities:
Reissuance of common shares from treasury related to vesting of restricted share units	$	854		$	293
Distributions declared but not yet paid	$	-		$	646
Acquisition of equity securities in restructuring of loans	$	259		$	809
Sale of other investments	$	-		$	1,400
Initial recognition of operating lease right-of-use assets	$	23,604		$	-
Initial recognition of operating lease right-of-use liabilities	$	29,278		$	-
Carrying value of noncash assets derecognized on deconsolidation of subsidiaries	$	1,226,848		$	-
Carrying value of noncash liabilities derecognized on deconsolidation of subsidiaries	$	1,161,933		$	-
Carrying value of non-controlling interest derecognized on deconsolidation of subsidiaries	$	12,842		$	-
Fair value of marketable securities recognized on deconsolidation of subsidiaries	$	76,879		$	-
Fair value of other investments recognized on deconsolidation of subsidiaries	$	7,516		$	-

See accompanying notes to consolidated financial statements.

10

JMP Group LLC

Notes to Consolidated Financial Statements

June 30, 2019

(Unaudited)

1. Organization and Description of Business

       JMP Group LLC, together with its subsidiaries (collectively, the “Company”), is a diversified capital markets firm headquartered in San Francisco, California. The Company conducts its investment banking and institutional brokerage business through JMP Securities LLC (“JMP Securities”) and its asset management business through Harvest Capital Strategies LLC (“HCS”), HCAP Advisors LLC (“HCAP Advisors”), JMP Asset Management LLC (“JMPAM”), and JMP Credit Advisors LLC ("JMPCA") (through March 19, 2019). The Company conducts certain principal investment transactions through JMP Investment Holdings LLC (“JMP Investment Holdings”) and other subsidiaries. The above entities, other than HCAP Advisors, are wholly-owned subsidiaries. JMP Securities is a U.S. registered broker-dealer under the Securities Exchange Act of 1934, as amended (the "Exchange Act”), and is a member of the Financial Industry Regulatory Authority (“FINRA”). JMP Securities operates as an introducing broker and does not hold funds or securities for, or owe any money or securities to customers and does not carry accounts for customers. All customer transactions are cleared through another broker-dealer on a fully disclosed basis. HCS is a registered investment advisor under the Investment Advisers Act of 1940, as amended, and provides investment management services for sophisticated investors in investment partnerships and other entities managed by HCS. HCAP Advisors provides investment advisory services to Harvest Capital Credit Corporation (“HCC”). JMPAM currently manages two fund strategies: one that invests in real estate and real estate-related enterprises and another that provides credit to small and midsized private companies. JMPCA is an asset management platform that underwrites and manages investments in senior secured debt. The Company completed a Reorganization Transaction in January 2015 pursuant to which JMP Group Inc. became a wholly-owned subsidiary of JMP Group LLC (the “Reorganization Transaction”). The Company entered into a Contribution Agreement in November 2017 pursuant to which JMP Group Inc. became a wholly-owned subsidiary of JMP Investment Holdings, which is a wholly-owned subsidiary of JMP Group LLC. 

Recent Transactions

On January 17, 2019, the non-call period of JMP Credit Advisors CLO III(R) Ltd. (“CLO III”) expired, which resulted in a change in the entity with the control over the most significant activities of the variable interest entity (“VIE”). During the non-call period the Company concluded that it was the primary beneficiary of CLO III through its combination of control over the manager and its economic interest in CLO III. When the non-call period expired, holders of a majority of the subordinated notes could refinance or liquidate the CLO and the Company determined this to be the most significant activity. The expiration of the non-call period resulted in the Company losing control over the most significant activity of CLO III as it cannot unilaterally direct this activity. The Company deconsolidated CLO III as of January 17, 2019. The Company continues to hold approximately 47% of the outstanding subordinated notes of CLO III and accounts for its ownership of the CLO III subordinated notes as an investment in a debt security. The Company has classified the subordinated notes as held-to-maturity. The Company recognized a gain of $1.6 million as revenue from principal transactions on the deconsolidation of CLO III in March 2019.

On March 19, 2019, the Company sold a 50.1% equity interest in JMPCA to Medalist Partners LP (“Medalist”), an alternative asset management firm specializing in structured credit and asset-backed lending, and a 4.9% interest to management employees of JMPCA. The Company retained 45.0% of the equity interest in JMPCA. The sale of JMPCA was considered a reconsideration event as defined in Accounting Standard Codification (“ASC”) 810, Consolidation, which requires a new consolidation analysis, and the Company determined that JMPCA is a VIE after the transaction date. The Company determined that it was not the primary beneficiary of JMPCA as the Company is not the party with the power to direct the most significant activities of JMPCA. As the Company determined that it is not the primary beneficiary, the Company deconsolidated JMPCA as of the date of sale. As the Company retained 45.0% of the equity interest of JMPCA and has significant influence, the Company has determined that it is required to account for its retained interest as an equity method investment, however the Company has made the election to apply the fair value option to this investment. The Company received a cash payment of $0.3 million in consideration for the limited liability company interest sold and recorded a gain of $3.4 million on deconsolidation as revenue from principal transactions. The Company will receive a portion of the subordinated management fees from the CLOs JMPCA managed as of the date of the sale and from CLO VI, once it securitizes. After the sale, JMPCA was renamed Medalist Partners Corporate Finance LLC.

The sale of JMPCA also required Medalist to provide additional capital to purchase an equity interest in JMP Credit Advisors Long-Term Warehouse Ltd (“CLO VI”) to finance the acquisition of broadly syndicated corporate loans. On March 19, 2019, Medalist related entities purchased 66% of the outstanding equity interest of CLO VI for $7.6 million. There was no gain or loss recognized on the sale of the equity interest.

After the sale of JMPCA, the Company lost the ability to direct the most significant activities of the following VIEs: JMP Credit Advisors CLO IV Ltd (“CLO IV”), JMP Credit Advisors CLO V Ltd (“CLO V”), and CLO VI (collectively with CLO III, the “CLOs”) and as a result, deconsolidated the aforementioned CLOs as of March 19, 2019. Previously the Company concluded that it was the primary beneficiary of CLO IV, CLO V, and CLO VI through its control over JMPCA and its ownership of 100% of the equity interests of these CLOs. The Company continues to hold 100% of the junior subordinated notes of CLO IV and CLO V and approximately 33% of the equity interests of CLO VI as of June 30, 2019. The Company owned 100% and 25% of the senior subordinated notes of CLO IV and CLO V, respectively, as of the date of deconsolidation. The Company sold all of its senior subordinated notes in CLO IV and CLO V in May 2019. The Company accounts for its ownership of the subordinated notes as an investment in a debt security and accounts for its ownership of the CLO VI equity interest as an equity investment. The Company classifies the junior subordinated notes of CLO IV and CLO V as available-for-sale securities and classified the senior subordinated notes as trading securities. Collectively, the Company recognized a loss on the deconsolidation of CLO IV, CLO V, and CLO VI of $1.8 million in March 2019 in revenues from principal transactions. The Company recorded a loss of $0.1 million on the sale of the senior subordinated notes of CLO IV and CLO V in May 2019 in revenues from principal transactions.

The deconsolidation of the CLOs and JMPCA was accounted for based on the guidance in ASC 810, Consolidation. According to that guidance, the gain or loss on deconsolidation is calculated as the difference between (i) the aggregate of the fair value of the retained interest in the former subsidiaries, the fair value of any consideration received, and the carrying value of the non-controlling interest in the former subsidiaries; and (ii) the carrying value of the assets and liabilities of the former subsidiaries. The gain recognized by the Company is primarily the result of the remeasurement of the retained interest in the CLOs and JMPCA. The difference between these was recorded as a gain on deconsolidation in the Consolidated Statements of Operations under principal transactions revenue. The following table represents the consideration received, the fair value of the retained interest, and the resulting gain on deconsolidation of the CLOs and JMPCA:

Cash received:	$	7,942
Retained interest, at fair value (1)		74,989
Non-controlling interest, at carrying value		12,842
Total of consideration received, retained interest, and non-controlling interest	$	95,773
Less:
Net assets of deconsolidated subsidiaries, at carrying value (2)		92,581
Gain on deconsolidation		3,192
Gain on remeasurement of CLO IV and CLO V senior subordinated notes		328
Total gain on deconsolidation	$	3,520

(1)	The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively
(2)	The book value of the net assets of CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $24.5 million, $30.2 million, $25.8 million, $11.6 million, and $0.5 million, respectively

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2. Summary of Significant Accounting Policies

Basis of Presentation

 These consolidated financial statements and related notes are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”). The results of operations for any interim period are not necessarily indicative of the results to be expected for a full year. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

The consolidated accounts of the Company include the wholly-owned subsidiaries and the partially-owned subsidiaries of which we are the majority owner or the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Non-controlling interests on the Consolidated Statements of Financial Condition at June 30, 2019 and December 31, 2018 relate to the interest of third parties in the partially-owned subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation.

   See Note 2 - Summary of Significant Accounting Policies in the Company's Annual Report for the Company's significant accounting policies.

For the six months ended June 30, 2019, there were no significant changes made to the Company’s significant accounting policies other than those described below and the accounting policy changes are attributable to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted this standard on January 1, 2019 using a modified retrospective approach. Accordingly, the new leasing standard was applied prospectively in the Company’s financial statements from January 1, 2019 forward and reported financial information for historical comparable periods was not revised and will continue to be reported under the accounting standards in effect during those historical periods.

   Refer to Note 3 - Recent Accounting Pronouncements, for additional information.

CLO Debt Securities

Investments in CLO debt securities are accounted for according to their purpose and holding period. CLO debt security investments that are classified as trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company had zero CLO debt securities classified as trading securities as of June 30, 2019 and December 31, 2018. The Company previously classified its senior subordinated notes in CLO IV and CLO V as trading securities, but sold these notes in May 2019 and recognized a loss of $0.1 million for the three months ended June 30, 2019. The Company’s investments in debt securities classified as available-for-sale are comprised of junior subordinated notes in CLO IV and CLO V and are those that may be sold before maturity and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income ("OCI"). The Company had $51.9 million and zero CLO debt securities classified as available-for-sale securities as of June 30, 2019 and December 31, 2018, respectively. The Company’s investment in CLO debt securities classified as held-to-maturity are comprised of CLO III junior subordinated notes and are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company had $13.3 million and zero CLO debt securities classified as held-to-maturity securities as of June 30, 2019 and December 31, 2018, respectively. Interest on CLO debt securities are recognized in interest income on an accrual basis using the effective yield method. Realized gains and losses on the sale of debt securities are determined using the specific identification method and recognized in current period earnings in revenues from principal transactions.

The Company evaluates the available-for-sale and held-to-maturity investments in debt securities for other than temporary impairment ("OTTI") quarterly. Impairment would be recorded if the net present value of the cash flows of the investment is below amortized cost and the Company does not expect to recover the amortized cost basis before the security is expected to be sold or the security matures, whichever comes first. Should the Company determine that there is an OTTI, the amount of the impairment is bifurcated between losses related to credit losses, which is recognized in revenues from principal transactions, and all other factors, which is recognized in OCI. The Company recorded no OTTI on CLO debt securities for either of the three or six months ended June 30, 2019 and 2018.

3. Recent Accounting Pronouncements

 Accounting Standards to be adopted in Future Periods

ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), was issued in June 2016, with subsequent amendments, to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This standard will become effective for fiscal years beginning after December 15, 2019. The Company is evaluating the impact of the adoption of this standard.

ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Sub-topic 310-20): Premium Amortization on Purchased Callable Debt Securities, was issued in March 2017 to shorten the amortization period for certain purchased callable debt securities held at a premium. It requires the premium to be amortized over the period until the earliest call date. The amendment does not make any changes for securities held at a discount. The new guidance will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Company is evaluating the impact of the adoption of this standard.

ASU 2018-13, Fair Value Measurement (Topic 820), was issued in August 2018 as part of the disclosure framework project to improve the effectiveness of the disclosures in the notes to the financial statements. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The new guidance will be effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is evaluating the impact of the adoption of this standard.

Recently Adopted Accounting Guidance

ASU 2016-02, Leases (Topic 842), was issued in February 2016, with subsequent amendments, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing information about leasing arrangements. The standard requires lessees to recognize the assets and liabilities arising from operational leases on the balance sheet. The Company adopted this standard on January 1, 2019 using a modified retrospective approach and recognized its lease agreements as a right-of-use asset with a corresponding lease liability to reflect the present value of the future lease payments. Accordingly, the new leasing standard was applied prospectively in the Company’s financial statements from January 1, 2019 forward and reported financial information for historical comparable periods was not revised and will continue to be reported under the accounting standards in effect during those historical periods. Additionally upon adoption the Company elected the package of practical expedients for leases that commenced before the date of adoption in which the Company was not required to reassess (i) whether any existing or expired contracts contain leases, (ii) the lease classification of existing or expired leases, and (iii) initial direct costs of existing or expired leases. On January 1, 2019, the Company recognized $23.6 million as an operating lease right-of-use asset and $29.3 million as an operating lease liability on the Consolidated Statements of Financial Condition related to its leasing obligations. As of June 30, 2019, the Company carried a $21.1 million operating lease right-of-use asset and a $26.5 million operating lease liability on the Consolidated Statements of Financial Condition related to its leasing obligations.

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4. Fair Value Measurements

The following tables provide fair value information related to the Company’s financial instruments at June 30, 2019 and December 31, 2018:

	June 30, 2019
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	52,901	$	52,901	$	-	$	-	$	52,901
Restricted cash and deposits		1,221		1,221		-		-		1,221
Marketable securities owned		81,499		16,252		-		64,157		80,409
Other investments		4,307		-		203		4,104		4,307
Other investments, measured at net asset value (1)		9,702		-		-		-		-
Loans held for investment, net of allowance for loan losses		5,292		-		884		4,423		5,307
Total assets:	$	154,922	$	70,374	$	1,087	$	72,684	$	144,145
Liabilities:
Marketable securities sold, but not yet purchased	$	2,724	$	2,724	$	-	$	-	$	2,724
Notes payable		15,812		-		14,983		829		15,812
Bond payable		83,706		-		87,223		-		87,223
Total liabilities:	$	102,242	$	2,724	$	102,206	$	829	$	105,759

	December 31, 2018
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	70,927	$	70,927	$	-	$	-	$	70,927
Restricted cash and deposits		61,881		61,881		-		-		61,881
Marketable securities owned		18,874		18,874		-		-		18,874
Other investments		490		-		490		-		490
Other investments, measured at net asset value (1)		9,423		-		-		-		-
Loans held for investment, net of allowance for loan losses		29,608		-		26,188		2,576		28,764
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		1,161,463		-		1,125,310		1,173		1,126,483
Total assets:	$	1,352,666	$	151,682	$	1,151,988	$	3,749	$	1,307,419
Liabilities:
Marketable securities sold, but not yet purchased	$	4,626	$	4,626	$	-	$	-	$	4,626
Notes payable		829		-		-		829		829
Asset-backed securities issued, net of debt issuance costs		1,112,342		-		1,091,677		-		1,091,677
Bond payable		83,497		-		78,642		-		78,642
CLO VI warehouse credit facility		22,500		-		22,500		-		22,500
Total liabilities:	$	1,223,794	$	4,626	$	1,192,819	$	829	$	1,198,274

(1) In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The carrying value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Statements of Financial Condition.

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Recurring Fair Value Measurement

The following tables provide information related to the Company’s assets and liabilities carried at fair value on a recurring basis at June 30, 2019 and December 31, 2018: 

(In thousands)			June 30, 2019
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	68,151	$	16,252	$	-	$	51,899	$	68,151
Other investments:
Equity investments		4,104		-		-		4,104		4,104
Investments in hedge funds managed by the Company		203		-		203		-		203
Investments in other funds managed by the Company (1)		5,245		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		4,457		-		-		-		-
Total other investments		14,009		-		203		4,104		4,307
Total assets:	$	82,160	$	16,252	$	203	$	56,003	$	72,458
Marketable securities sold, but not yet purchased		2,724		2,724		-		-		2,724
Total liabilities:	$	2,724	$	2,724	$	-	$	-	$	2,724

(In thousands)			December 31, 2018
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	18,874	$	18,874	$	-	$	-	$	18,874
Other investments:
Investments in hedge funds managed by the Company		490		-		490		-		490
Investments in other funds managed by the Company (1)		5,503		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		3,920		-		-		-		-
Total other investments		9,913		-		490		-		490
Total assets:	$	28,787	$	18,874	$	490	$	-	$	19,364
Marketable securities sold, but not yet purchased		4,626		4,626		-		-		4,626
Total liabilities:	$	4,626	$	4,626	$	-	$	-	$	4,626

(1) In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Consolidated Statements of Financial Condition.

As of June 30, 2019, marketable securities sold but not yet purchased were primarily comprised of U.S. listed securities. As of June 30, 2019, marketable securities was comprised of U.S. listed equity securities and CLO debt securities. As of December 31, 2018, both marketable securities owned and marketable securities sold, but not yet purchased, were primarily comprised of U.S. listed equity securities.

Transfers between levels of the fair value hierarchy result from changes in the observability of fair value inputs used in determining fair values for different types of financial assets and are recognized at the beginning of the reporting period in which the event or change in circumstances that caused the transfer occurs. The Company’s policy is to recognize the fair value of transfers among Levels 1, 2 and 3 as of the end of the reporting period. For recurring fair value measurements, there were no transfers between Levels 1, 2 and 3 for the six months ended June 30, 2019 and the year ended December 31, 2018.

The Company’s Level 2 assets held in other investments consist of investments in hedge funds managed by HCS. The carrying value of investments in hedge funds are calculated using the equity method and approximates fair value. Earnings or losses attributable to these investments are recorded in principal transactions. These assets are considered Level 2 as the underlying hedge funds are mainly invested in publicly traded stocks whose value is based on quoted market prices. The Company’s proportionate share of those investments is included in the tables above.

The investments in private equity funds managed by HCS and JMPAM are recognized using the fair value option. The Company uses the reported net asset value per share as a practical expedient to estimate the fair value of the funds. The risks associated with these investments are limited to the amounts of invested capital, remaining capital commitment and any management and incentive fees receivable.

The Company determined the fair value of short-term debt, which includes notes payable and CLO credit facilities, to approximate their carrying values. This was determined as the debt has either (1) a variable interest rate tied to LIBOR and therefore reflects market conditions, or (2) a term less than one year and there have been no observable changes in the credit quality of the Company since the issuance of the debt. Based on the fair value methodology, the Company has identified short-term debt as Level 2 liabilities.

The Company's Level 3 assets in other investments is comprised of investments in equity securities of private companies. The Company determines the fair value of the investments either through (1) using the net present value of discounted cash flows of the estimated value of the put option of the investment or (2) using a market multiples approach. For the investment whose fair value determined using the discounted cash flows approach, the Company has a put option on this investment that is exercisable at three times the management fee revenue of the entity for the prior twelve months as of the effective date of the put option. The put option may be elected beginning March 31, 2022. The significant unobservable inputs under this approach are the estimated twelve months of revenues, the credit factor and the discount rate. For this investment, the Company elected the fair value option as the Company determined that the fair value of its option to put the equity securities was the best representation of the fair value of the investment. While the Company has made other equity investments, it has not elected the fair value option for those investments as it is impractical to determine the fair value of those investments. For the investment whose fair value is determined using the market multiples approach, the Company determines the enterprise value of the investment using the investments estimated EBITDA and an EBITDA multiple from comparable companies. 

The Company’s Level 3 assets held in marketable securities consist of investments in CLO debt securities. The fair value of the CLO debt securities is determined using the net present value of discounted cash flows. The significant unobservable inputs used in the fair value measurement under this approach are the risk adjusted discount factors. The Company also uses performance and covenant compliance information provided by the CLO manager along with other risk factors including default risk, prepayment rates, interest rate risk, and credit spread risk when valuing this investment. During the three and six months ended June 30, 2019, the fair value of the Company's investment in CLO debt securities declined due a change that was deemed temporary. This conclusion was reached as the reduction in fair value was not due to credit factors and the Company believes that any reduction in fair value can be recovered before the security is sold or matures, whichever comes first.

For the three and six months ended June 30, 2019, the changes in Level 3 assets measured at fair value on a recurring basis were as follows:

(In thousands)	CLO junior subordinated notes			CLO senior subordinated notes			Equity Investment		Total
Balance as of December 31, 2018	$	-		$	-		$	57	$	57
Fair value at recognition date		54,279			9,289			3,568		67,136
Purchases		-			-			11		11
Accrued interest		294			34			-		328
Unrealized losses on investments, recognized in OCI		(1,055	)		-			-		(1,055	)
Balance as of March 31, 2019	$	53,518		$	9,323		$	3,636	$	66,477
Accrued interest		1,969			69			-		2,038
Purchases		-			-			171		171
Investment distributions		(1,170	)		(883	)		-		(2,053	)
Unrealized losses on investments, recognized in OCI		(2,418	)		-					(2,418	)
Unrealized gains on investments, recognized in earnings		-			-			297		297
Realized losses on sales, recognized in earnings		-			(112	)		-		(112	)
Sales		-			(8,397	)		-		(8,397	)
Balance as of June 30, 2019	$	51,899		$	-		$	4,104	$	56,003

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For assets classified in the Level 3 hierarchy, any changes to any of the inputs to the fair value measurement could result in a significant increase or decrease in the fair value measurement. For CLO debt securities, a significant increase (decrease) in the discount rate, default rate, and severity rate would result in a significant decrease (increase) in the fair value of the instruments. For the equity investments, a significant increase (decrease) in the credit factor or the discount rate would result in a significantly lower (higher) fair value measurement or a significant increase (decrease) in the EBITDA multiple would result in a significant higher (lower) fair value measurement. For Level 3 assets measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, the significant unobservable inputs used in the fair value measurements were as follows:

(In thousands)		Significant Unobservable Inputs Range (Weighted-average)						Fair value
	Valuation Technique	Description	June 30, 2019			December 31, 2018		June 30, 2019		December 31, 2018
CLO debt security	Discounted cash flows	Risk adjusted discounting factor		15.0	%		N/A	$	64,157	$	-
		Default rate		0.0 - 2.0% (1.9	%)		N/A
		Severity rate		25.0	%		N/A
		Prepay rate		25 CPR			N/A
		Collateral liquidation price		99.0	%		N/A
Equity investments	Discounted cash flows	Credit factor		20.0	%		N/A	$	3,755	$	-
		Risk adjusted discounting factor		17.6	%		N/A
	Market	EBITDA Multiple	7.0x				N/A	$	349	$	57

The Company determined the fair value of loans collateralizing ABS issued and loans held for investment identified as Level 2 assets primarily using the average market bid and ask quotation obtained from a loan pricing service. The valuations are received from a pricing service to which the Company subscribes. The pricing service's analysis incorporates comparable loans traded in the marketplace, the obligors industry, future business prospects, capital structure, and expected credit losses. Significant declines in the performance of the obligor would result in decrease to the fair value measurement. The fair value of loans held for investment identified as Level 3 assets are determined using the discounted cash flow model using the treasury rate, loan interest rate, and an internally generated risk rate.

The Company determined the fair value of ABS issued based upon pricing from published market research for equivalent-rated CLO notes. Based on the fair value methodology, the Company has identified the asset-backed securities issued as Level 2 liabilities.

As of June 30, 2019 and December 31, 2018, $9.7 million and $9.4 million of assets were measured using the net asset value as a practical expedient. Investments for which fair value was estimated using net asset value as a practical expedient were as follows:

				Fair Value at				Unfunded Commitments
Dollars in thousands	Redemption Frequency	Redemption Notice Period		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Limited partner investments in private equity/ real estate funds	Nonredeemable		N/A	$	4,457	$	3,920	$	4,833	$	68
Investment in other funds managed by the Company	Nonredeemable		N/A	$	5,245	$	5,503	$	1,776	$	1,945

Non-recurring Fair Value Measurements

The Company's assets that are measured at fair value on a non-recurring basis result from the application of lower of cost or market accounting or write-downs of individual assets. The Company held loans measured at fair value on a non-recurring basis of zero and $1.3 million as of June 30, 2019 and December 31, 2018, respectively.

The Company had marketable securities that were measured at fair value on a non-recurring basis as the Company has the intent and ability to hold these securities until maturity. The Company held marketable securities measured at fair-value on a non-recurring basis of $13.3 million as of June 30, 2019.

5. Investment Securities

  The following table summarizes available-for-sale securities in an unrealized position as of June 30, 2019:

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Total OTTI in OCI		Number of positions
CLO IV junior subordinated notes	$	28,280	$	-	$	(2,711	)	$	25,569	$	-		1
CLO V junior subordinated notes		27,092		-		(762	)		26,330		-		1
Total	$	55,372	$	-	$	(3,473	)	$	51,899	$	-

          The following table summarizes the held-to-maturity securities in an unrealized position as of June 30, 2019:

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Number of positions
CLO III subordinated notes	$	13,348	$	-	$	(1,090	)	$	12,258		1
Total	$	13,348	$	-	$	(1,090	)	$	12,258

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   The following table summarizes the fair value and amortized cost of the available-for-sale and held-to-maturity securities by contractual maturity as of June 30, 2019:

(In thousands)	Available-for-sale				Held-to-maturity
	Amortized cost		Fair value		Amortized cost		Fair value
5-10 years	$	28,280		25,569		13,348		12,258
10+ years		27,092		26,330		-		-
Total	$	55,372	$	51,899	$	13,348	$	12,258

   The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2019:

(In thousands)	Less than 12 months					Greater than 12 months				Total
	Fair value		Gross unrealized loss			Fair value		Gross unrealized loss		Fair value		Gross unrealized loss
CLO III subordinated notes	$	12,258	$	(1,090	)	$	-	$	-	$	12,258	$	(1,090	)
CLO IV junior subordinated notes		25,569		(2,711	)		-		-		25,569		(2,711	)
CLO V junior subordinated notes		26,330		(762	)		-		-		26,330		(762	)
Total	$	64,157	$	(4,563	)	$	-	$	-	$	64,157	$	(4,563	)

During the three months ended June 30, 2019 and 2018, the Company recognized unrealized losses on CLO debt securities of $2.4 million and zero, respectively. During the six months ended June 30, 2019 and 2018, the Company recognized unrealized losses on CLO debt securities of $3.5 million and zero, respectively.

6. Loans 

Loans collateralizing ABS issued

During the period ending June 30, 2019, the Company deconsolidated its investments in the CLOs and as a result, no longer has loans collateralizing ABS on its Consolidated Statements of Financial Condition as of June 30, 2019. See Note 1 for additional information on deconsolidation. A summary of the activity in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018 is as follows:

(In thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-Impaired		Impaired			Non-Impaired			Impaired			Non-Impaired			Impaired			Non-Impaired
Balance, at beginning of period	$	-	$	-	$	(1,209	)	$	(6,492	)	$	(836	)	$	(9,751	)	$	(391	)	$	(6,533	)
Provision for loan losses:
Specific reserve		-		-		-			-			-			-			(953	)		-
General reserve		-		-		-			(369	)		-			-			-			(328	)
Charge off		-		-		1,099			-			181			-			1,234			-
Derecognition due to deconsolidation		-		-		-			-			655			9,751			-			-
Balance, at end of period	$	-	$	-	$	(110	)	$	(6,861	)	$	-		$	-		$	(110	)	$	(6,861	)

16

A loan is considered to be impaired when, based on current information, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the original loan agreement, including scheduled principal and interest payments. As of December 31, 2018, $1.8 million of the recorded investment amount in loans collateralizing asset-backed securities issued were individually evaluated for impairment. The remaining $1,170.2 million of recorded investment amount of loans collateralizing asset-backed securities issued were collectively evaluated for impairment as of December 31, 2018.

As of December 31, 2018 the Company classified all its loans as Cash Flow loans, as their funding decisions were all primarily driven by the cash flows of the borrower. The table below presents certain information pertaining to the loans on non-accrual status at December 31, 2018:

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	1,813	$	1,951	$	838	$	1,817	$	119
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	1,813	$	1,951	$	838	$	1,817	$	119

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. No loans were past due at June 30, 2019 or December 31, 2018. The Company had one troubled debt restructuring during the six months ended June 30, 2019. The loan, with a principal balance and a carrying balance of $0.5 million and $0.2 million in total, respectively, was converted to equity. The Company valued the equity at $0.2 million in total upon conversion and recorded no material gain or loss upon the execution of the restructuring.

 During the year ended December 31, 2018, the Company had two loans, which were modified in a troubled debt restructuring. The loans, with a principal balance and a carrying balance of $1.9 million and $1.0 million in total, respectively, were converted to equity. The Company valued the equity at $0.8 million in total upon conversion and incurred a loss of $0.1 million in relation to the restructuring as of December 31, 2018. 

The Company’s management, at least on a quarterly basis, reviews each loan and evaluates the credit quality of the loan. The review primarily includes the following credit quality indicators with regard to each loan: 1) Moody’s rating, 2) current internal rating, 3) the trading price of the loan and 4) performance of the obligor. The tables below present, by credit quality indicator, the Company’s recorded investment in loans collateralizing asset-backed securities issued at December 31, 2018. These loans were deconsolidated as of June 30, 2019 as part of the deconsolidation of the CLOs. See Note 1 for additional information. 

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	7,300
Ba1 - Ba3		-		247,686
B1 - B3		-		856,204
Caa1 - Caa3		-		59,046
Ca		-		1,813
Total:	$	-	$	1,172,049
Internal rating: (1)
2	$	-	$	1,018,261
3		-		132,169
4		-		19,806
5		-		1,813
Total:	$	-	$	1,172,049
Performance:
Performing	$	-	$	1,170,236
Non-Performing		-		1,813
Total:	$	-	$	1,172,049

(1) Loans with an internal rating of 3 or below are reviewed individually to identify loans to be designated for non-accrual status.

17

Loans Held for Investment

At June 30, 2019 and December 31, 2018, the number of loans held for investment outside of the CLO warehouse portfolio was seven and five, respectively. The Company reviews the credit quality of these loans within this portfolio segment on a loan by loan basis mainly focusing on the borrower’s financial position and results of operations as well as the current and expected future cash flows on the loans. As of December 31, 2018, the Company held $26.0 million of loans held for investment in the CLO VI warehouse portfolio. The credit quality of the CLO VI warehouse loans are evaluated in the same manner as the credit quality of loans collateralizing ABS issued. On March 19, 2019, the Company deconsolidated its investments in the CLO VI warehouse and a result, no longer has loans held for investment related to CLO VI on its Consolidated Statements of Financial Condition as of June 30, 2019. See Note 1 for additional information on the deconsolidation.

There were no loans past due as of June 30, 2019 and 2018. A summary of activity in loan losses for the three and six months ended June 30, 2019 and 2018 is as follows:

(in thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-impaired		Impaired			Non-impaired			Impaired			Non-impaired			Impaired			Non-impaired
Balance, at beginning of the period	$	-	$	-	$	(205	)	$	(858	)	$	(218	)	$	(181	)	$	(2,279	)	$	(494	)
Provision for loan losses
Specific		-		-		-			-			-			-			(205	)		-
General		-		-		-			(914	)		-			-			-			(1,278	)
Charge off		-		-		205			26			218			-			2,484			26
Derecognition due to deconsolidation		-		-		-			-			-			181			-			-
Balance, at end of the period	$	-	$	-	$	-		$	(1,746	)	$	-		$	-		$	-		$	(1,746	)

   A loan is considered to be impaired when, based on current information, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the original loan agreement, including scheduled principal and interest payments. As of June 30, 2019 and December 31, 2018, zero and $0.5 million of recorded investment amount of loans issued were individually evaluated for impairment, respectively. 

The Company had one troubled debt restructuring during the six months ended June 30, 2019. The loan, with a principal balance and a carrying balance of $0.5 million and $0.2 million in total, respectively, was converted to equity. The Company valued the equity at $0.2 million in total upon conversion and recoded no material gain or loss upon the execution of the restructuring.

During the three and six months ended June 30, 2018, the Company had two loans, which were modified in a troubled debt restructuring. The  two  loans were held under the same borrower. The loans, with a principal balance and a carrying balance of $  1.9  million and  $1.0  million in total, respectively, were converted to equity. The Company valued the equity at $0.8  million in total upon conversion and incurred a loss of  $0.1  million in relation to the restructuring as of June 30, 2018.

   As of December 31, 2018, the Company classified all its loans held for investment as Cash Flow loans, as their funding decisions were all primarily driven by the cash flows of the borrower. There were no impaired loans on non-accrual status as of June 30, 2019. The table below presents certain information pertaining to the loans on non-accrual status as of December 31, 2018:

	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	462	$	484	$	219	$	462	$	34
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	462	$	484	$	219	$	462	$	34

The Company's management, at least on a quarterly basis, reviews each loan and evaluates the credit quality of the loan. The review primarily includes the following credit quality indicators with regard to each loan: 1) Moody's rating, 2) current internal rating (through March 19, 2019) 3) trading price of the loan, and 4) performance of the obligor. The table below presents, by credit quality indicator, the Company's recorded investment in loans held for investment at June 30, 2019 and December 31, 2018:

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	-
Ba1 - Ba3		-		7,459
B1 - B3		906		18,342
Caa1 - Caa3		-		419
Ca		-		463
Not Rated		4,386		3,326
Total:	$	5,292	$	30,009
Internal rating: (1)
2	$	-	$	26,208
3		-		909
4		-		-
5		-		462
Not rated		5,292		2,430
Total:	$	5,292	$	30,009
Performance:
Performing	$	5,292	$	29,547
Non-performing		-		462
Total:	$	5,292	$	30,009

(1) Loans with an internal rating of 4 or below are reviewed individually to identify loans to be designated for non-accrual status.

18

7. Debt

Bond Payable

(In thousands)	June 30, 2019			December 31, 2018
8.00% Senior Notes due 2023	$	36,000		$	36,000
7.25% Senior Notes due 2027		50,000			50,000
Total outstanding principal	$	86,000		$	86,000
Less: Debt issuance costs		(2,219	)		(2,428	)
Less: Consolidation elimination		(75	)		(75	)
Total bond payable, net	$	83,706		$	83,497

The 8.00% Senior Notes due 2023 and the 7.25% Senior Notes due 2027 (collectively, the “Senior Notes”) were issued by JMP Group Inc. pursuant to indentures with U.S. Bank National Association, as trustee. The 8.00% Senior Notes indentures contain a minimum liquidity covenant that obligates JMP Group Inc. to maintain liquidity of at least an amount equal to the lesser of (i) the aggregate amount due on the next eight scheduled quarterly interest payments on the 8.00% Senior Notes, or (ii) the aggregate amount due on all remaining scheduled quarterly interest payments on the $36 million 8.00% Senior Notes until the maturity of the 8.00% Senior Notes. The Senior Notes indenture also contains customary event of default and cure provisions. If an uncured default occurs and is continuing, the trustee or the holders of at least 25% in principal amount of the Senior Notes may declare the Senior Notes immediately due and payable. The Senior Notes are JMP Group Inc.’s general unsecured senior obligations, and rank equally with all existing and future senior unsecured indebtedness and are senior to any other indebtedness expressly made subordinate to the notes. At both June 30, 2019 and December 31, 2018, the Company was in compliance with the debt covenants in the indentures. 

The future scheduled principal payments of the debt obligations as of June 30, 2019 were as follows:

(In thousands)
2019	$	-
2020		-
2021		-
2022		-
2023		36,000
Thereafter		50,000
Total	$	86,000

Note Payable, Lines of Credit and Credit Facilities

(In thousands)	Outstanding Balance
	June 30, 2019		December 31, 2018
$100 million, CLO VI warehouse credit facility through October 11, 2021	$	-	$	22,500
$25 million, JMP Holding credit agreement through December 31, 2020		14,983		-
$20 million, JMP Securities revolving line of credit through June 6, 2020		-		-
Note payable		829		829
Total note payable, lines of credit, and credit facilities	$	15,812	$	23,329

The Company's Credit Agreement (the "Credit Agreement") dated as of April 30, 2014, was entered by and between JMP Holding and City National Bank ("CNB"). The Credit Agreement contains financial and other covenants, including, but not limited to, limitations on debt, liens and investments, as well as the maintenance of certain financial covenants. A violation of any one of these covenants could result in a default under the Credit Agreement, which would permit CNB to terminate the Company’s note and require the immediate repayment of any outstanding principal and interest. At both June 30, 2019 and December 31, 2018, the Company was in compliance with the loan covenants. As of June 30, 2019 and December 31, 2018, the outstanding balance on the Credit Agreement was $15.0 million and zero, respectively. The $25 million line of credit has a LIBOR plus 225 bps interest rate, which will convert to a term loan after December 31, 2020, and will be repaid in quarterly installments of 3.75% of funded debt for the first two years, 5.00% of funded debt for the next two years, and the remainder due at maturity. 

JMP Securities holds a $20 million revolving line of credit with CNB to be used for regulatory capital purposes during its securities underwriting activities. The line of credit bears interest at a rate to be agreed upon at the time of advance between the Company and CNB.

 The net loans collateralizing the CLO VI warehouse facility were zero and $26.0 million as of June 30, 2019 and December 31, 2018, respectively. As of December 31, 2018, the CLO VI warehouse facility has a market standard advance rate and the outstanding balances bear interest at LIBOR plus 1.250% until October 11, 2021, which marks the end of the revolving period on the facility. The facility has a 12 months amortization period after the revolving period in which the outstanding balances bear standard market interest rate based on LIBOR. During the six months ended June 30, 2019, the Company deconsolidated its investments in the CLO VI warehouse and as a result, no longer has the CLO VI warehouse credit facility on its Consolidated Statements of Financial Condition as of June 30, 2019. See Note 1 for additional information on deconsolidation.

 On January 9, 2018, an affiliate purchased a $0.8 million note from the Company. The note bears interest at a rate of 12.5% per annum and matures November 20, 2022. As of June 30, 2019, the carrying value of the note payable was $0.8 million.

19

8. Asset-backed Securities Issued

 The table below sets forth the outstanding debt obligations of CLO III, CLO IV, and CLO V as of December 31, 2018:

(In thousands)	As of December 31, 2018
	Outstanding Principal Balance			Interest Rate Spread to LIBOR			Weighted Average Remaining Maturity (years)
Class A Senior Secured Floating Rate Notes	$	769,750			0.85%-1.37	%		10.04
Class B Senior Secured Floating Rate Notes		143,700			1.30%-1.90	%		10.04
Class C Senior Secured Deferrable Floating Rate Notes		71,500			1.80%-2.65	%		9.99
Class D Senior Secured Deferrable Floating Rate Notes		68,350			2.60%-4.15	%		10.01
Class E Senior Secured Deferrable Floating Rate Notes		60,800			5.70%-6.80	%		10.03
Total secured notes sold to investors	$	1,114,100
Senior Subordinated Notes		7,221			6.90	%		11.00
Less: Debt issuance costs		(8,979	)
Total asset-backed securities issued	$	1,112,342

The secured notes and subordinated notes are limited recourse obligations payable solely from cash flows of the CLOs loan portfolios and related collection and payment accounts pledged as security. Payment on Class A notes rank senior in right of payment to the other secured notes and the subordinated notes. Payment on the Class B, Class C, Class D and Class E notes generally rank subordinate in right of payment to any other class of notes which has an earlier alphabetical designation. Payment of interest on the Class C, Class D, Class E, and senior subordinated notes is payable only to the extent proceeds are available under the applicable payment priority provisions. To the extent proceeds are not available, interest on the Class C, Class D, Class E, and senior subordinated notes will be deferred. The secured notes are secured by the CLOs loan portfolio and the funds on deposit in various related collection and payment accounts. The terms of the debt securitization subject the loans included in the CLOs loan portfolio to a number of collateral quality, portfolio profile, interest coverage and overcollateralization tests. The subordinated notes are subordinated in right of payment to all other classes of notes and are unsecured.

 During the six months ended June 30, 2019, the Company deconsolidated CLO III, CLO IV, and CLO V, and as a result, no longer carried the ABS issued on its Consolidated Statements of Financial Condition as of June 30, 2019. See Note 1 for additional information on deconsolidation.

The net loans collateralizing asset-backed securities for CLO III, CLO IV, and CLO V was $1,161.5 million as of December 31, 2018.  

9. Leases

Substantially all of the leases in which the Company is the lessee are office space leases with various terms with the maximum duration through 2026. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s Consolidated Statements of Financial Condition. With the adoption of ASU 2016-02, Leases (Topic 842), operating lease agreements are required to be recognized on the Consolidated Statements of Financial Condition as a "right-of-use" (“ROU”) asset and a corresponding lease liability. 

The calculated amount of the ROU asset and lease liability are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used.

	June 30, 2019
Weighted-average remaining lease term
Operating leases		5.79
Weighted-average discount rate
Operating leases		6.12	%

The Company leases office space in California, Illinois, Georgia (through March 19, 2019), Massachusetts, Minnesota, Florida, and New York under various operating leases. Occupancy expense was $1.4 million and $1.1 million for quarters ended June 30, 2019 and 2018, respectively. Occupancy expense was $2.8 million and $2.3 million for six months ended June 30, 2019 and 2018, respectively.

20

The California, Illinois, Minnesota and New York leases included a period of free rent at the start of the lease. Rent expense is recognized over the entire lease period. The aggregate minimum future lease payments of these leases are:

(In thousands)	Minimum Future Lease Payments
Year Ending December 31,
2019	$	2,153
2020		5,629
2021		5,693
2022		5,649
2023		5,643
Thereafter		6,562
Total minimum future lease payments		31,329
Amounts representing interest		(4,847	)
Present value of net future minimum lease payments	$	26,482

	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities	$	2,946
Operating leases	$	2,946

10. Shareholders’ Equity

Share Repurchase Program

On February 17, 2017, our board of directors authorized the repurchase of up to 1,000,000 shares through December 31, 2018. On December 3, 2018, with the previous authorization expired, our board of directors approved the extension of the term of the Company's share repurchase program through April 30, 2019. On April 22, 2019 the Company's board of directors approved the extension of the term of the Company's share repurchase program through June 30, 2019. During the three months ended June 30, 2019, the Company repurchased 161,571 of the Company’s shares, at an average price of $3.96 per share, for an aggregate purchase price of $0.6 million on the open market. During the six months ended June 30, 2019, the Company repurchased 318,826 of the Company’s shares, at an average price of $4.09 per share, for an aggregate purchase price of $1.3 million on the open market. The Company terminated its repurchase program effective May 8, 2019, prior to the launch of a self-tender offer.

Self-Tender Offer

On May 13, 2019, the Company launched a self-tendered offer (the "Tender Offer") to repurchase for cash up to 3,000,000 of shares representing limited liability interests of the Company, or approximately 14.2% of the Company's outstanding common shares. The Tender Offer expired on June 13, 2019. The Tender Offer resulted in the Company's repurchase of 1,816,732 shares at a purchase price of $3.95 per share for a total purchase price of $7.2 million, excluding fees and expenses related to the Tender Offer.

11. Accumulated Other Comprehensive Income

The following table summarizes the unrealized gains and losses on securities of accumulated other comprehensive losses, before tax, tax effect, and net of tax, for the three and six months ended June 30, 2019:

(In thousands)	Before Tax			Tax Effect		Net of Tax
Beginning, January 1, 2019	$	-		$	-	$	-
Net unrealized losses during the period		(1,055	)		273		(782	)
Balance as of March 31, 2019	$	(1,055	)	$	273	$	(782	)
Net unrealized losses during the period		(2,418	)		631		(1,787	)
Balance as of June 30, 2019	$	(3,473	)	$	904	$	(2,569	)

12. Share-Based Compensation

On January 27, 2015, the board of directors adopted the JMP Group LLC Amended and Restated Equity Incentive Plan (“JMP Group Plan”). The plan maintains authorization of the issuance of 4,000,000 shares, as originally approved by shareholders on April 12, 2007 and subsequently approved by shareholders on June 6, 2011. This amount is increased by any shares the Company purchases on the open market, or through any share repurchase or share exchange program, initiated by the Company unless the board of directors or its appointee determines otherwise. The Company will issue shares upon exercises or vesting from authorized but unissued shares or from treasury shares.

Share Options

The following table summarizes the share option activity for the six months ended June 30, 2019:

	Six Months Ended
	June 30, 2019
	Shares Subject		Weighted Average
	to Option		Exercise Price
Balance, beginning of year		1,300,000	$	6.85
Balance, end of period		1,300,000	$	6.85
Options exercisable at end of period		1,300,000	$	6.85

21

The following table summarizes the share options outstanding as well as share options vested and exercisable as of June 30, 2019:

June 30, 2019

Options Outstanding

Options Vested and Exercisable

Weighted

Weighted

Average

Weighted

Average

Weighted

Range of

Remaining

Average

Aggregate

Remaining

Average

Aggregate

Exercise

Number

Contractual

Exercise

Intrinsic

Number

Contractual

Exercise

Intrinsic

Prices

Outstanding

Life in Years

Price

Value

Exercisable

Life in Years

Price

Value

$6.79 - $7.33

1,300,000

0.50

$

6.85

$

-

1,300,000

0.50

$

6.85

$

-

     The Company recognizes share-based compensation expense for share options over the vesting period using the accelerated attribution method when they are subject to graded vesting and on a straight-line basis when they are subject to cliff vesting. The Company recognized compensation expense related to share options of zero for both the three and six months ended June 30, 2019 and 2018, respectively. 

    As of June 30, 2019, there was no unrecognized compensation expense related to share options.

   There were no share options exercised during both the three and six months ended June 30, 2019 and June 30, 2018. As a result, the Company did not recognize any current income tax benefits from the exercise of share options.

   The Company uses the Black-Scholes option-pricing model or other quantitative models to calculate the fair value of option awards.

Restricted Share Units

On February 6, 2019 the Company granted approximately 280,000 RSUs to certain employees of the Company as part of the 2018 deferred compensation program. 50% of these units will vest on December 1, 2019 and the remaining 50% will vest on December 1, 2020, subject to the grantees’ continued employment through such dates. The Company also granted RSUs for new hires throughout the year which have various vesting schedules.

  The following table summarizes RSU activity for the six months ended June 30, 2019:

	Six Months Ended
	June 30, 2019
	Restricted			Weighted Average
	Share Units			Grant Date Fair Value
Balance, beginning of year		297,639		$	4.79
Granted		465,519			4.23
Vested		(162,048	)		4.55
Balance, end of period		601,110		$	4.42

The aggregate fair value of RSUs vested during both the three months ended June 30, 2019 and 2018 were $376 thousand and $191 thousand, respectively. The aggregate fair value of RSUs vested during both the six months ended June 30, 2019 and 2018 were $737 thousand and $312 thousand, respectively. The income tax benefits realized from the vested RSUs were $98 thousand and $28 thousand for the three months ended June 30, 2019 and 2018, respectively. The income tax benefits realized from the vested RSUs were $179 thousand and $28 thousand for the six months ended June 30, 2019 and 2018, respectively.

The Company recognizes compensation expense for RSUs over the vesting period using the accelerated attribution method when they are subject to graded vesting and on a straight-line basis when they are subject to cliff vesting. For the three months ended June 30, 2019 and 2018, the Company recorded compensation expenses related to RSU's of $0.6 million and $0.3 million, respectively. For the six months ended June 30, 2019 and 2018, the Company recorded compensation expenses related to RSU's of $1.1 million and $0.8 million, respectively. 

  For the three months ended June 30, 2019 and 2018, the Company recognized income tax benefits of $155 thousand and $55 thousand, respectively, related to the compensation expense recognized for RSUs. For the six months ended June 30, 2019 and 2018, the Company recognized income tax benefits of $275 thousand and $113 thousand, respectively, related to the compensation expense recognized for RSUs. As of June 30, 2019, there was $1.5 million of unrecognized compensation expense related to RSUs expected to be recognized over a weighted average period of 1.33 years

The Company pays cash distribution equivalents on certain RSUs upon vesting. Distribution equivalents paid on RSUs are generally charged to retained earnings. The Company accounts for the tax benefit related to distribution equivalents paid on RSUs as an increase in additional paid-in capital.

22

Share Appreciation Rights

  In February 2015, the Company granted an aggregate of 2,865,000 share appreciation rights (“SARs”) to certain employees and the Company’s independent directors. These SARs have a base price of $7.33 per share, an exercise period of five years and have vested and became exercisable on December 31, 2017 subject to the terms and conditions of the applicable grant agreements. The fair value of the SARs was determined using a quantitative model, using the following assumptions: expected life of 2.0 years, risk-free interest rate of2.18%, distribution yield of 17.44%, and volatility of 20.00%. The risk-free rate was interpolated from the U.S. constant maturity treasuries for a term corresponding to the maturity of the SAR. The volatility was calculated from the historical weekly share prices of the Company as of the grant date for a term corresponding to the maturity of the SAR. The distribution yield was calculated as the sum of the last twelve-month distributions over the share price as of the grant date.

The following table summarizes the SARs activity for the six months ended June 30, 2019

	Six Months Ended
	June 30, 2019
	Share Appreciation		Weighted Average
	Rights		Exercise Price
Balance, beginning of year		2,485,000	$	7.33
Balance, end of period		2,485,000	$	7.33

The following table summarizes the share options outstanding as well as share options vested and exercisable as of June 30, 2019:

		June 30, 2019
		SARs Outstanding
				Weighted
				Average		Weighted
				Remaining		Average		Aggregate
Exercise		Number		Contractual		Exercise		Intrinsic
Price		Outstanding		Life in Years		Price		Value
$	7.33		2,485,000		0.50	$	7.33	$	-

The Company recognizes compensation expense for SARs over the vesting period, through monthly mark to market of adjustments to the liability award. For the three months ended June 30, 2019 and 2018, the Company recorded compensation benefit of zero and compensation expense of $25 thousand, respectively. For the six months ended June 30, 2019 and 2018, the Company recorded compensation benefit of zero and $99 thousand, respectively.

For the three months ended June 30, 2019 and 2018, the Company recognized income tax benefit of zero and income tax expense of $6 thousand related to the compensation expense recognized for SARs. For the six months ended June 30, 2019 and 2018, the Company recognized income tax benefit of zero and $26 thousand related to the compensation expense recognized for SARs. As of June 30, 2019, there was no unrecognized compensation expense related to SARs.

13. Net Income per Common Share

Basic net income (loss) per share for the Company is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted net income (loss) per share is calculated by adjusting the weighted average number of outstanding shares to reflect the potential dilutive impact as if all potentially dilutive share options or RSUs were exercised or converted under the treasury share method. However, for periods that the Company has a net loss, the effect of outstanding share options or RSUs is anti-dilutive and, accordingly, is excluded from the calculation of diluted loss per share.

The computations of basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 are shown in the tables below: 

(In thousands, except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019		2018
Numerator:
Net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957	$	(2,271	)
Denominator:
Basic weighted average shares outstanding		20,772			21,537			21,028		21,601
Effect of potential dilutive securities:
Restricted share units		-			-			123		-
Diluted weighted average shares outstanding		20,772			21,537			21,151		21,601
Net income (loss) per share
Basic	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)
Diluted	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)

Due to the net loss for three and six months ended June 30, 2018 and three months ended June 30, 2019, all of the share options and restricted share units outstanding, were anti-dilutive and, therefore, were not included in the computation of diluted weighted-average common shares outstanding. 

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14. ASC 606 Revenue from contracts with customers

The following tables represent the Company's total revenues from contracts with customers, disaggregated by major business activity, for the three and six months ended June 30, 2019 and June 30, 2018, respectively.

(in thousands)	Three Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	12,328		$	-	$	-	$	-	$	-	$	-		$	12,328
Strategic advisory and private placements		5,408			-		-		-		-		-			5,408
Total investment banking revenues		17,736			-		-		-		-		-			17,736
Commissions		3,063			-		-		-		-		-			3,063
Research payments		1,655			-		-		-		-		-			1,655
Net trading losses		(61	)		-		-		-		-		-			(61	)
Total brokerage revenues		4,657			-		-		-		-		-			4,657
Base management fees		-			1,533		-		1,533		-		(25	)		1,508
Incentive management fees		-			846		-		846		-		-			846
Total asset management fees		-			2,379		-		2,379		-		(25	)		2,354
Total revenues from contracts with customers	$	22,393		$	2,379	$	-	$	2,379	$	-	$	(25	)	$	24,747

(in thousands)	Three Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	24,050		$	-	$	-	$	-	$	-	$	-		$	24,050
Strategic advisory and private placements		4,512			-		-		-		-		-			4,512
Total investment banking revenues		28,562			-		-		-		-		-			28,562
Commissions		4,095			-		-		-		-		-			4,095
Research payments		1,650			-		-		-		-		-			1,650
Net trading losses		(298	)		-		-		-		-		-			(298	)
Total brokerage revenues		5,447			-		-		-		-		-			5,447
Base management fees		-			4,314		-		4,314		-		(1,051	)		3,263
Incentive management fees		-			344		2,017		2,361		-		(246	)		2,115
Total asset management fees		-			4,658		2,017		6,675		-		(1,297	)		5,378
Total revenues from contracts with customers	$	34,009		$	4,658	$	2,017	$	6,675	$	-	$	(1,297	)	$	39,387

(in thousands)	Six Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	19,117		$	-	$	-	$	-	$	-	$	-		$	19,117
Strategic advisory and private placements		10,498			-		-		-		-		-			10,498
Total investment banking revenues		29,615			-		-		-		-		-			29,615
Commissions		6,362			-		-		-		-		-			6,362
Research payments		2,864			-		-		-		-		-			2,864
Net trading losses		(34	)		-		-		-		-		-			(34	)
Total brokerage revenues		9,192			-		-		-		-		-			9,192
Base management fees		-			4,237		-		4,237		-		(1,032	)		3,205
Incentive management fees		-			588		264		852		-		-			852
Total asset management fees		-			4,825		264		5,089		-		(1,032	)		4,057
Total revenues from contracts with customers	$	38,807		$	4,825	$	264	$	5,089	$	-	$	(1,032	)	$	42,864

(in thousands)	Six Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	35,912		$	-	$	-	$	-	$	-	$	-		$	35,912
Strategic advisory and private placements		13,312			-		-		-		-		-			13,312
Total investment banking revenues		49,224			-		-		-		-		-			49,224
Commissions		7,986			-		-		-		-		-			7,986
Research payments		2,635			-		-		-		-		-			2,635
Net trading losses		(510	)		-		-		-		-		-			(510	)
Total brokerage revenues		10,111			-		-		-		-		-			10,111
Base management fees		-			8,321		-		8,321		-		(1,998	)		6,323
Incentive management fees		-			423		5,303		5,726		-		(246	)		5,480
Total asset management fees		-			8,744		5,303		14,047		-		(2,244	)		11,803
Total revenues from contracts with customers	$	59,335		$	8,744	$	5,303	$	14,047	$	-	$	(2,244	)	$	71,138

15. Employee Benefits

All salaried employees of the Company are eligible to participate in the JMP Group 401(k) Plan after three months of employment. Participants may contribute up to the limits set by the U.S. Internal Revenue Service. Effective January 1, 2015, the Company contributes a match of 100% of each participant’s contributions to the JMP Group 401(k) Plan up to a maximum of 3% of the participant’s compensation plus 50% of the participant’s elective deferrals between 3% and 5%. All participants are immediately vested 100% on matched contributions. The Company recorded JMP Group 401(k) Plan matching expense of $0.2 million and $0.3 million for the three months ended June 30, 2019 and 2018, respectively. The Company recorded JMP Group 401(k) Plan matching expense of $1.1 million and $1.2 million for the six months ended June 30, 2019 and 2018, respectively. 

16. Income Taxes

JMP Group LLC’s election to be taxed as a corporation for United States federal income tax purposes was approved by the Internal Revenue Service with an effective date of January 1, 2019. Taxable income derived from the investment activities of its previously untaxed pass-through entities will now be taxed at a U.S. federal and state corporate rate, along with the Company’s corporate subsidiaries.

For the three months ended June 30, 2019 and 2018, the Company recorded income tax benefit of $0.5 million and expense of $4.9 million, respectively. The effective tax rate is 30.20% and 132.80% for the three months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019 and 2018, the Company recorded income tax benefit of $4.6 million and $0.7 million, respectively. The effective tax rate is 684.30% and 18.55% for the six months ended June 30, 2019 and 2018, respectively.

For financial reporting purposes, the Company’s effective tax rate used for the interim periods is based on the estimated full-year income tax rate. The effective tax rate differs from the statutory rate primarily due to the change in tax status from non-taxable to taxable which resulted in recognizing the initial temporary differences between book bases and tax bases of assets and liabilities.

The Company recognizes deferred tax assets and liabilities in accordance with ASC 740, Income Taxes, and are determined based upon the temporary differences between the financial reporting and tax basis of the Company’s assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse.

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17. Commitments and Contingencies

      In connection with its underwriting activities, JMP Securities  may, from time to time, enter into firm commitments for the purchase of securities in return for a fee. These commitments require JMP Securities to purchase securities at a specified price. Securities underwriting exposes JMP Securities to market and credit risk, primarily in the event that, for any reason, securities purchased by JMP Securities cannot be distributed at anticipated price levels. Settlement of transactions relating to such underwriting commitments, which were open at June 30, 2019, had no material effect on the Company's consolidated financial statements. JMP Securities had no open underwriting commitments as of December 31, 2018.

The marketable securities owned and the restricted cash, as well as the cash held by the clearing broker  may be used to maintain margin requirements. The Company had $0.3 million of cash on deposit with JMP Securities’ clearing broker at both June 30, 2019 and December 31, 2018. Furthermore, the marketable securities owned may be hypothecated or borrowed by the clearing broker.

Unfunded commitments are agreements to lend to a borrower, provided that all conditions have been met. The Company had unfunded commitments to lend of $0.8 million and $28.7 million as of June 30, 2019 and December 31, 2018. Using the average market bid and ask quotation obtained from a loan pricing service, the Company determined the fair value of the unfunded commitments to be $0.6 million and $27.0 million as of June 30, 2019 and December 31, 2018.

18. Regulatory Requirements

JMP Securities is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. JMP Securities had net capital of $23.0 million and $29.8 million, which were $21.9 million and $28.7 million in excess of the required net capital of $1.1 million and $1.1 million at June 30, 2019 and December 31, 2018, respectively. JMP Securities’ ratio of aggregate indebtedness to net capital was0.72 to 1 and 0.57to 1 at June 30, 2019 and December 31, 2018, respectively.

Since all customer transactions are cleared through another broker-dealer on a fully disclosed basis, JMP Securities is not required to maintain a separate bank account for the exclusive benefit of customers in accordance with Rule 15c3-3 under the Exchange Act.

19. Related Party Transactions

The Company earns base management fees and incentive fees from serving as investment advisor for various entities, including corporations, partnerships limited liability companies, and offshore investment companies. The Company also owns an investment in some of such affiliated entities. As of June 30, 2019 and December 31, 2018, the aggregate fair value of the Company’s investments in the affiliated entities for which the Company serves as the investment advisor was $22.9million and $18.6 million, respectively, which consisted of investments in hedge and other private funds of $12.4million and $8.6 million, respectively, and an investment in HCC common stock of $10.5 million and $10.0 million, respectively. Base management fees earnedfrom these affiliated entities were $1.5 million and $3.3 million for the three months ended June 30, 2019 and 2018. Base management fees earned from these affiliated entities were $3.2 million and $6.3 million for the six months ended June 30, 2019 and 2018. Also, the Company earned incentive fees of $0.8 million and $2.1 million, from these affiliated entities for the three months ended June 30, 2019 and 2018. The Company earned incentive fees of $0.9 million and $5.5 million, from these affiliated entities for the six months ended June 30, 2019 and 2018. 

On September 19, 2017, the Company made a loan to a registered investment adviser of $3.4 million, at an interest rate of 15% per year. In October 2017, the Company sold 30% of the loan, or $1.0 million, to an affiliate. As of June 30,2019 and December 31, 2018, the Company’s portion of the outstanding loan balance to this entity was both $2.4 million. The Company determined the fair value of loans held for investment to be $2.5 million as of June 30, 2019 and $2.3 million as of December 31, 2018, using anticipated cash flows, discounted at an appropriate market credit adjusted interest rate.

On January 9, 2018, an affiliate purchased a $0.8 million note from the Company. As of June 30, 2019, the carrying value of note payable was $0.8 million.

On January 9, 2018, the Company sold a 30% subscription into an investment series held by a subsidiary to an affiliate. The transaction resulted in the admission of the affiliate into the limited liability company subsidiary as a non-controlling member. The Company recorded $0.5 million as capital attributable to non-controlling interest upon execution as of December 31, 2018. The Company has allocated income on the investment based on the affiliates' pro-rata share of ownership of the investment series of $16 and $31 thousand for the three and six months ended June 30, 2019. The Company has allocated income on the investment based on the affiliates' pro-rata share of ownership of the investment series of $15 and $28 thousand for the three and six months ended June 30, 2018.

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20. Guarantees

JMP Securities has agreed to indemnify its clearing broker for losses that the clearing broker may sustain from the accounts of customers introduced by JMP Securities. Should a customer not fulfill its obligation on a transaction, JMP Securities may be required to buy or sell securities at prevailing market prices in the future on behalf of its customer. JMP Securities’ obligation under the indemnification has no maximum amount. All unsettled trades at June 30, 2019 and December 31, 2018 have subsequently settled with no resulting material liability to the Company. For the three and six months ended June 30, 2019 and 2018, the Company had no material loss due to counterparty failure, and has no obligations outstanding under the indemnification arrangement as of June 30, 2019 or December 31, 2018.

The Company is engaged in various investment banking and brokerage activities whose counterparties primarily include broker-dealers, banks and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company’s policy to review, as necessary, the credit standing of each counterparty with which it conducts business.

21. Litigation

The Company may be involved from to time in a number of judicial, regulatory, litigation and arbitration matters arising in connection with the business. The outcome of such matters the Company has been and/or currently is involved in cannot be determined at this time, and the results cannot be predicted with certainty. There can be no assurance that these matters will not have a material adverse effect on the results of operations in any future period and a significant outcome could have a material adverse impact on the Company’s financial condition, results of operations and cash flows.

The Company reviews the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability and the amount of loss, if any, can be reasonably estimated. Generally, given the inherent difficulty of predicting the outcome of matters the Company is involved in, particularly cases in which claimants seek substantial or indeterminate damages, it is not possible to determine whether a liability has been incurred or to reasonably estimate the ultimate or minimum amount of that liability until the case is close to resolution. For these matters, no reserve is established until such time, other than for reasonably estimable legal fees and expenses. Management, after consultation with legal counsel, believes that the currently known actions or threats will not result in any material adverse effect on the Company’s financial condition, results of operations or cash flows.

22. Financial Instruments with Off-Balance Sheet Risk, Credit Risk or Market Risk

The majority of the Company’s transactions, and consequently the concentration of its credit exposure, is with its clearing broker. The clearing broker is also a significant source of short-term financing for the Company, which is collateralized by cash and securities owned by the Company and held by the clearing broker. The Company’s securities owned may be pledged by the clearing broker. The receivable from the clearing broker represents amounts receivable in connection with the trading of proprietary positions.

The Company is also exposed to credit risk from other brokers, dealers and other financial institutions with which it transacts business. In the event that counterparties do not fulfill their obligations, the Company may be exposed to credit risk.

The Company’s trading activities include providing securities brokerage services to institutional clients. To facilitate these customer transactions, the Company purchases proprietary securities positions (“long positions”) in equity securities. The Company also enters into transactions to sell securities not yet purchased (“short positions”), which are recorded as liabilities on the Consolidated Statements of Financial Condition. The Company is exposed to market risk on these long and short securities positions as a result of decreases in market value of long positions and increases in market value of short positions. Short positions create a liability to purchase the security in the market at prevailing prices. Such transactions result in off-balance sheet market risk as the Company’s ultimate obligation to satisfy the sale of securities sold, but not yet purchased, may exceed the amount recorded in the Consolidated Statements of Financial Condition. To mitigate the risk of losses, these securities positions are marked to market daily and are monitored by management to assure compliance with limits established by the Company.

Unfunded commitments are agreements to lend to a borrower, provided that all conditions have been met. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each borrower’s creditworthiness on a case by case basis.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a borrower to a third party. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to borrowers. In connection with the CLOs, the Company had standby letters of credit of zero and $1.4 million as of June 30, 2019 and December 31, 2018, respectively. In addition, the Company had unfunded commitments to lend to a borrower. See Note 18 for description of the Company's unfunded commitments to lend as of June 30, 2019 and December 31, 2018.

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23. Business Segments

 The Company’s business results are categorized into the following four business segments: Broker-Dealer, Asset Management Fee Income, Investment Income, and Corporate costs. The Broker-Dealer segment includes a broad range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in M&A, restructuring and other strategic transactions. The Broker-Dealer segment also includes institutional brokerage services and equity research services to our institutional investor clients. The Asset Management Fee Income segment includes the management of a broad range of pooled investment vehicles, including the Company’s hedge funds, private equity funds, hedge funds of funds, and collateralized loan obligations. The Investment income segment includes income from the Company’s principal investments in public and private securities and investment funds managed by HCS, as well as any other net interest and income from investing activities, and interest expense related to the Company's bond issuance. The Corporate Costs segment also includes expenses related to JMP Group LLC, JMP Holding LLC and JMP Group Inc., and is mainly comprised of corporate overhead expenses.

 During the year ended 2018, the Company changed its internal reporting which resulted in changes to the Company's segment information. The Company has restated the prior period presented herein to conform to the new presentation.

 Management uses operating net income as a key metric when evaluating the performance of JMP Group’s core business strategy and ongoing operations. This measure adjusts the Company’s net income as follows: (i) reverses share-based compensation expense related to historical equity awards granted in prior periods, (ii) recognizes 100% of the cost of deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, (iii) reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III; (iv) unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization; (v) reverses net unrealized gains and losses on strategic equity investments and warrants, (vi) excludes general loan loss provisions related to the CLOs, (vii) reverses one-time transaction costs related to the refinancing of the debt; (viii) one time expense associated with redemption of debt underlying the CLOs, the redemption of other debt, and the resulting acceleration of amortization of remaining capitalized issuance costs for each; and (ix) presents revenues and expenses on a basis that deconsolidates the CLOs and removes any non-controlling interest in consolidated but less than wholly owned subsidiaries. These charges may otherwise obscure the Company’s operating income and complicate an assessment of the Company’s core business activities. The operating pre-tax net income facilitates a meaningful comparison of the Company’s results in a given period to those in prior and future periods.

The Company’s segment information for the three and six months ended June 30, 2019 and 2018 was prepared using the following methodology:

• Revenues and expenses directly associated with each segment are included in determining segment operating income.

• Revenues and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors.

• Each segment’s operating expenses include: a) compensation and benefits expenses that are incurred directly in support of the segments and b) other operating expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services.

• Assets directly associated with each segment are allocated to the respective segment. One exception is depreciable assets, which are held at the Corporate segment. The associated depreciation is allocated to the related segment.

• Investment Income segment assets are presented net of an intercompany loan.

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Segment Operating Results

Management believes that the following information provides a reasonable representation of each segment’s contribution to revenues, income and assets:

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Broker-Dealer
Non-interest revenues	$	22,399		$	34,015		$	38,819		$	59,344
Total net revenues after provision for loan losses	$	22,399		$	34,015		$	38,819		$	59,344
Non-interest expenses		23,458			30,410			41,358			53,326
Segment operating pre-tax net income (loss)	$	(1,059	)	$	3,605		$	(2,539	)	$	6,018
Segment assets	$	53,622		$	70,349		$	53,622		$	70,349
Asset Management Fee Income
Non-interest revenues	$	2,536		$	4,572		$	4,897		$	8,561
Total net revenues after provision for loan losses	$	2,536		$	4,572		$	4,897		$	8,561
Non-interest expenses		2,883			4,756			5,973			9,776
Segment operating pre-tax net loss	$	(347	)	$	(184	)	$	(1,076	)	$	(1,215	)
Segment assets	$	11,424		$	20,529		$	11,424		$	20,529
Investment Income
Non-interest revenues	$	2,125		$	3,556		$	7,875		$	5,724
Net interest income		816			2,927			4,139			5,054
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(42	)
Provision for loan losses		-			(37	)		-			(930	)
Total net revenues after provision for loan losses	$	2,941		$	6,404		$	12,014		$	9,806
Non-interest expenses		495			3,372			3,044			7,561
Segment operating pre-tax net income	$	2,446		$	3,032		$	8,970		$	2,245
Segment assets	$	121,145			1,152,160		$	121,145			1,152,160
Corporate Costs
Non-interest expenses	$	1,982		$	2,573		$	4,042		$	4,831
Segment operating pre-tax net loss	$	(1,982	)	$	(2,573	)	$	(4,042	)	$	(4,831	)
Segment assets	$	276,693		$	282,699		$	276,693		$	282,699
Eliminations
Non-interest revenues	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Total net revenues after provision for loan losses	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Non-interest expenses		(34	)		(1,168	)		(1,048	)		(2,149	)
Segment operating pre-tax net income	$	-		$	-		$	-		$	2
Segment assets	$	(226,911	)	$	(274,705	)	$	(226,911	)	$	(274,705	)
Consolidating adjustments and reconciling items
Non-interest revenues	$	209	(a)	$	576	(a)	$	341	(a)	$	(1,637	)(a)
Net interest income		17	(b)		1,108	(b)		212	(b)		1,989	(b)
Loss on repurchase or early retirement of debt		-			-			-			(2,626	)
Provision for loan losses		-			(1,243	)		-			(1,815	)
Total net revenues after provision for loan losses	$	226		$	441		$	553		$	(4,089	)
Non-interest expenses		996	(c)		635	(c)		2,541	(c)		1,759	(c)
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Segment operating pre-tax net loss	$	(687	)	$	(973	)	$	(1,975	)	$	(5,163	)
Total Segments
Non-interest revenues		27,235			41,551			50,884			69,845
Net interest income		833			4,035			4,351			7,043
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(2,668	)
Provision for loan losses		-			(1,280	)		-			(2,745	)
Total net revenues after provision for loan losses	$	28,068		$	44,264		$	55,235		$	71,475
Non-interest expenses		29,780			40,578			55,910			75,104
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Total assets	$	235,973		$	1,251,031		$	235,973		$	1,251,031

(a)	Non-interest revenue adjustments are comprised of mark-to-market gains/losses on strategic equity investments and warrants, deferred compensation invested in funds, and unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, included depreciation and amortization.
(b)	The net interest income adjustment is comprised of costs related to refinancing and early retirement of debt.
(c)	Non-interest expense adjustments relate to reversals of share-based and deferred compensation and the amortization expense related to an intangible asset.

28

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Operating net income (loss)	$	(697	)	$	3,384		$	972		$	1,753
Addback (subtract) of segment income tax expense (benefit)		(245	)		496			341			466
Total segments adjusted operating pre-tax net income (loss)	$	(942	)	$	3,880		$	1,313		$	2,219
Subtract (addback)
Share-based awards and deferred compensation		587			69			1,431			213
General loan loss provision – CLOs, CLO warehouse		-			1,164			-			1,493
Early debt retirement/reissuance		-			-			-			1,318
CLO refinancing costs		-			(10	)		-			54
Amortization of intangible asset – CLO III		-			69			277			138
Unrealized (gain) loss on real estate fund investment – depreciation and amortization		221			(24	)		778			1,604
Unrealized mark-to-market (gain) loss on strategic equity investments		(121	)		(295	)		(511	)		343
Total consolidation adjustments and reconciling items		687			973			1,975			5,163
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Income tax expense (benefit)		(517	)		4,895			(4,619	)		(673	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957		$	(2,271	)

29

24. Nonconsolidated Variable Interest Entities

        VIEs for which the Company is not the primary beneficiary consists of private equity funds, CLO investments, and other investments in which the Company has an equity ownership interest. In the first quarter of 2019, the Company deconsolidated its CLOs from its Consolidated Statements of Financial Condition but retained an ownership investment in the CLOs. As the CLOs are VIEs, the CLOs are presented in the nonconsolidated VIE table as of June 30, 2019. See Note 1 for additional information on deconsolidation of the CLOs. The Company's maximum exposure to loss from its non-consolidated VIEs consists of equity investments and receivables as follows:

(In thousands)	As of
	June 30, 2019								December 31, 2018
	Financial Statement								Financial Statement
	Carrying Amount				Maximum				Carrying Amount				Maximum
	Assets		Liabilities		Exposure to Loss		VIE Assets		Assets		Liabilities		Exposure to Loss		VIE Assets
CLOs	$	78,348	$	-	$	78,348	$	1,363,427	$	-	$	-	$	-	$	-
Fund investments		5,215		-		6,645		192,378		5,083		-		7,028		204,646
Other investments		4,194		-		4,194		1,206,934		933		-		933		1,235,146
Total	$	87,757	$	-	$	89,187	$	2,762,739	$	6,016	$	-	$	7,961	$	1,439,792

25. 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.'s obligations under the Senior Notes 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 financial statements present the financial condition, results of operations, and cash flows of JMP Group LLC and JMP Investment Holdings LLC ("Parent Companies and Guarantors"), JMP Group Inc. ("Subsidiary Issuer"), all other consolidated subsidiaries (collectively "Non-Guarantor Subsidiaries"), and the elimination of entries necessary to consolidate or combine the Subsidiary Issuer with the Parent Companies and Guarantors and Non-Guarantor Subsidiaries. These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X Rule 3-10.

	As of June 30, 2019
	Parent Companies and Guarantors		Subsidiary Issuer		Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Assets
Cash and cash equivalents	$	8,808	$	7,095	$	36,998		$	-		$	52,901
Restricted cash and deposits		-		1,221		-			-			1,221
Investment banking fees receivable, net of allowance for doubtful accounts		-		-		6,169			-			6,169
Marketable securities owned, at fair value		38,991		694		41,888			(74	)		81,499
Other investments		3,870		2,255		25,987			-			32,112
Loans held for investment, net of allowance for loan losses		1,958		906		2,428			-			5,292
Interest receivable		40		16		749			(419	)		386
Fixed assets, net		-		-		2,518			-			2,518
Operating lease right-of-use asset		-		21,096		-			-			21,096
Other assets		119		131,030		46,206			(144,576	)		32,779
Investment in subsidiaries		264,858		76,166		-			(341,024	)		-
Total assets	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973
Liabilities and Equity
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	$	-	$	-	$	2,724		$	-		$	2,724
Accrued compensation		685		1,001		11,986			-			13,672
Interest payable		-		1,071		501			(419	)		1,153
Notes payable		127,603		-		32,746			(144,537	)		15,812
Bond payable, net of debt issuance costs		-		83,780		-			(74	)		83,706
Operating lease right-of-use liability		-		26,482		-			-			26,482
Other liabilities		5,799		236		11,150			67			17,252
Total liabilities	$	134,087	$	112,570	$	59,107		$	(144,963	)	$	160,801
Total shareholders' equity		184,557		127,909		104,317			(341,342	)		75,441
Nonredeemable Non-controlling Interest	$	-	$	-	$	(481	)	$	212		$	(269	)
Total equity	$	184,557	$	127,909	$	103,836		$	(341,130	)	$	75,172
Total liabilities and equity	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973

30

	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

31

	For the Three Months Ended June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	17,736		$	-		$	17,736
Brokerage		-			-			4,657			-			4,657
Asset management fees		-			-			2,388			(34	)		2,354
Principal transactions		(26	)		421			1,028			-			1,423
Loss on sale, payoff and mark-to-market of loans		(21	)		-			-			-			(21	)
Net dividend income		16			28			249			-			293
Other income		206			-			587			-			793
Equity earnings (losses) of subsidiaries		865			(522	)		-			(343	)		-
Non-interest revenues (losses)		1,040			(73	)		26,645			(377	)		27,235
Interest income		1,880			1,113			1,717			(1,938	)		2,772
Interest expense		(1,056	)		(2,068	)		(752	)		1,937			(1,939	)
Net interest income (expense)		824			(955	)		965			(1	)		833
Total net revenues (losses) after provision for loan losses		1,864			(1,028	)		27,610			(378	)		28,068
Non-interest expenses
Compensation and benefits		445			1,048			18,452			-			19,945
Administration		155			109			2,518			(34	)		2,748
Brokerage, clearing and exchange fees		-			-			733			-			733
Travel and business development		37			12			1,298			-			1,347
Managed deal expense		-			-			1,334			-			1,334
Communications and technology		-			2			1,125			-			1,127
Occupancy		-			-			1,409			-			1,409
Professional fees		515			60			246			-			821
Depreciation		-			-			311			-			311
Other		-			-			5			-			5
Total non-interest expenses		1,152			1,231			27,431			(34	)		29,780
Net income (loss) before income tax expense		712			(2,259	)		179			(344	)		(1,712	)
Income tax benefit		(58	)		(344	)		(115	)		-			(517	)
Net income (loss)		770			(1,915	)		294			(344	)		(1,195	)
Less: Net loss attributable to nonredeemable non-controlling interest		-			-			(83	)		-			(83	)
Net income (loss) attributable to JMP Group LLC	$	770		$	(1,915	)	$	377		$	(344	)	$	(1,112	)

32

	For the Three Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	28,562		$	-		$	28,562
Brokerage		-			-			5,447			-			5,447
Asset management fees		-			-			5,420			(42	)		5,378
Principal transactions		533			(126	)		1,277			-			1,684
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(135	)		-			(150	)
Net dividend income		280			11			28			-			319
Other income		-			-			311			-			311
Equity earnings of subsidiaries		3,577			2,719			-			(6,296	)		-
Non-interest revenues		4,375			2,604			40,910			(6,338	)		41,551
Interest income		667			1,141			15,921			(2,060	)		15,669
Interest expense		(1,158	)		(2,299	)		(10,237	)		2,060			(11,634	)
Net interest income (expense)		(491	)		(1,158	)		5,684			-			4,035
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			-			-			(42	)
Provision for loan losses		-			-			(1,280	)		-			(1,280	)
Total net revenues after provision for loan losses		3,842			1,446			45,314			(6,338	)		44,264
Non-interest expenses
Compensation and benefits		621			1,235			27,282			-			29,138
Administration		171			101			2,481			(42	)		2,711
Brokerage, clearing and exchange fees		-			-			788			-			788
Travel and business development		(31	)		4			1,229			-			1,202
Managed deal expense		-			-			2,348			-			2,348
Communications and technology		1			2			1,044			-			1,047
Occupancy		-			-			1,143			-			1,143
Professional fees		590			67			481			-			1,138
Depreciation		-			-			287			-			287
Other		69			-			707			-			776
Total non-interest expenses		1,421			1,409			37,790			(42	)		40,578
Net income (loss) before income tax expense		2,421			37			7,524			(6,296	)		3,686
Income tax expense		-			3,734			1,161			-			4,895
Net income (loss)		2,421			(3,697	)		6,363			(6,296	)		(1,209	)
Less: Net income (loss) attributable to nonredeemable non-controlling interest		815			-			(36	)		-			779
Net income (loss) attributable to JMP Group LLC	$	1,606		$	(3,697	)	$	6,399		$	(6,296	)	$	(1,988	)

32

	For the Six Months Ended June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	29,615		$	-		$	29,615
Brokerage		-			-			9,192			-			9,192
Asset management fees		-			-			4,105			(48	)		4,057
Principal transactions		391			483			5,837			-			6,711
Loss on sale, payoff and mark-to-market of loans		(21	)		-			(17	)		-			(38	)
Net dividend income		118			40			431			-			589
Other income		235			-			523			-			758
Equity earnings (losses) of subsidiaries		11,757			(1,258	)		-			(10,499	)		-
Non-interest revenues		12,480			(735	)		49,686			(10,547	)		50,884
Interest income		2,830			2,203			16,143			(4,113	)		17,063
Interest expense		(2,112	)		(4,134	)		(10,578	)		4,112			(12,712	)
Net interest income (expense)		718			(1,931	)		5,565			(1	)		4,351
Total net revenues (losses) after provision for loan losses		13,198			(2,666	)		55,251			(10,548	)		55,235
Non-interest expenses
Compensation and benefits		1,026			2,092			34,049			-			37,167
Administration		302			219			4,204			(48	)		4,677
Brokerage, clearing and exchange fees		-			-			1,434			-			1,434
Travel and business development		73			20			2,275			-			2,368
Managed deal expense		-			-			1,867			-			1,867
Communications and technology		2			1			2,177			-			2,180
Occupancy		-			-			2,832			-			2,832
Professional fees		1,085			124			1,068			-			2,277
Depreciation		-			-			608			-			608
Other		277			-			223			-			500
Total non-interest expenses		2,765			2,456			50,737			(48	)		55,910
Net income (loss) before income tax expense		10,433			(5,122	)		4,514			(10,500	)		(675	)
Income tax expense (benefit)		255			(5,243	)		369			-			(4,619	)
Net income (loss)		10,178			121			4,145			(10,500	)		3,944
Less: Net income (loss) attributable to nonredeemable non-controlling interest		167			-			(180	)		-			(13	)
Net income (loss) attributable to JMP Group LLC	$	10,011		$	121		$	4,325		$	(10,500	)	$	3,957

33

	For the Six Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	49,224		$	-		$	49,224
Brokerage		-			-			10,111			-			10,111
Asset management fees		-			-			12,025			(222	)		11,803
Principal transactions		(2,646	)		(144	)		854			-			(1,936	)
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(317	)		-			(332	)
Net dividend income		551			14			50			-			615
Other income		-			-			360			-			360
Equity earnings of subsidiaries		7,100			2,791			-			(9,891	)		-
Non-interest revenues		4,990			2,661			72,307			(10,113	)		69,845
Interest income		1,331			2,283			28,895			(4,130	)		28,379
Interest expense		(2,302	)		(4,592	)		(18,571	)		4,129			(21,336	)
Net interest income (expense)		(971	)		(2,309	)		10,324			(1	)		7,043
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			(2,626	)		-			(2,668	)
Reversal (provision) for loan losses		15			-			(2,760	)		-			(2,745	)
Total net revenues after provision for loan losses		3,992			352			77,245			(10,114	)		71,475
Non-interest expenses
Compensation and benefits		1,081			2,076			50,242			-			53,399
Administration		326			238			4,602			(222	)		4,944
Brokerage, clearing and exchange fees		-			-			1,565			-			1,565
Travel and business development		35			18			2,103			-			2,156
Managed deal expense		-			-			3,914			-			3,914
Communications and technology		1			5			2,103			-			2,109
Occupancy		-			-			2,260			-			2,260
Professional fees		1,261			152			1,630			-			3,043
Depreciation		-			-			551			-			551
Other		138			-			1,025			-			1,163
Total non-interest expenses		2,842			2,489			69,995			(222	)		75,104
Net income (loss) before income tax expense		1,150			(2,137	)		7,250			(9,892	)		(3,629	)
Income tax expense (benefit)		-			(2,255	)		1,582			-			(673	)
Net income (loss)		1,150			118			5,668			(9,892	)		(2,956	)
Less: Net loss attributable to nonredeemable non-controlling interest		(231	)		-			(454	)		-			(685	)
Net income (loss) attributable to JMP Group LLC	$	1,381		$	118		$	6,122		$	(9,892	)	$	(2,271	)

34

	For the Six Months Ended June 30, 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	$	12,953		$	(11,085	)	$	(22,507	)	$	(10,500	)	$	(31,139	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(904	)		-			(904	)
Purchases of other investments		(401	)		(363	)		(8,866	)		-			(9,630	)
Sales or distributions from other investments		1,840			329			9,073			(878	)		10,364
Funding of loans collateralizing asset-backed securities issued		-			-			(35,153	)		-			(35,153	)
Funding of loans held for investment		(1,131	)		(876	)		(23,580	)		-			(25,587	)
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		139			7			6,874			-			7,020
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries		-			-			(27,771	)		-			(27,771	)
Investment in subsidiary		10,301			1,261			-			(11,562	)		-
Net cash provided by (used in) investing activities	$	10,748		$	358		$	(56,521	)	$	(12,440	)	$	(57,855	)
Cash flows from financing activities:
Proceeds from drawdowns on line of credit		-			-			16,583			-			16,583
Proceeds from drawdowns on CLO warehouse facilities		-			-			7,750			-			7,750
Repayment of line of credit		-			-			(1,600	)		-			(1,600	)
Repayment of asset-backed securities issued		-			-			(1,679	)		878			(801	)
Distributions and distribution equivalents paid on common shares and RSUs		(1,913	)		-			-			-			(1,913	)
Purchases of common shares for treasury		(8,614	)		-			-			-			(8,614	)
Distributions to non-controlling interest shareholders		(913	)		-			-			-			(913	)
Employee taxes paid on shares withheld for tax-withholding purposes		(184	)		-			-			-			(184	)
Capital contributions of parent		(8,133	)		9,067			(22,996	)		22,062			-
Net cash provided by (used in) financing activities	$	(19,757	)	$	9,067		$	(1,942	)	$	22,940		$	10,308
Net increase (decrease) in cash and cash equivalents		3,944			(1,660	)		(80,970	)		-			(78,686	)
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	$	8,807		$	8,316		$	36,999		$	-		$	54,122

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	For the Six Months Ended June 30, 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	$	23,243		$	(1,130	)	$	(26,374	)	$	(9,933	)	$	(14,194	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(580	)		-			(580	)
Purchases of other investments		(5,187	)		(430	)		(55	)		4,453			(1,219	)
Sales or distributions from other investments		13,161			116			2,306			(4,411	)		11,172
Funding of loans collateralizing asset-backed securities issued		-			-			(193,024	)		-			(193,024	)
Funding of loans held for investment		14			-			(225,365	)		-			(225,351	)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued		(15	)		-			172,430			-			172,415
Sale, payoff and principal receipts on loans held for investment		1,560			-			20,546			-			22,106
Investment in subsidiary		9,466			(3,914	)		-			(5,552	)		-
Net cash provided by (used in) investing activities		18,999		$	(4,228	)	$	(223,742	)	$	(5,510	)	$	(214,481	)
Cash flows from financing activities:
Proceeds from issuance of repurchase agreement		3,878			-			-			-			3,878
Repayment of repurchase agreement		(3,878	)		-			-			-			(3,878	)
Proceeds from drawdowns on line of credit		-			-			18,000			-			18,000
Proceeds from drawdowns of CLO warehouse facility		-			-			177,250			-			177,250
Proceeds from sale of note payable to affiliate		-			-			829			-			829
Payment of debt issuance costs		-			(142	)		(1,715	)		-			(1,857	)
Repayment of asset-backed securities issued		(4,453	)		-			(327,647	)		-			(332,100	)
Proceeds of issuance from asset-backed securities issued		-			-			327,605			-			327,605
Reissuance of asset-backed securities		4,411			-			42			-			4,453
Distributions and distribution equivalents paid on common shares and RSUs		(3,975	)		-			-			-			(3,975	)
Purchase of subsidiary shares from non-controlling interest holders		(656	)		-			656			-			-
Capital contributions of nonredeemable non-controlling interest holders		-			-			449			-			449
Purchases of common shares for treasury		(1,525	)		-			-			-			(1,525	)
Distributions to non-controlling interest shareholders		(540	)		-			(109	)		-			(649	)
Employee taxes paid on shares withheld for tax-withholding purposes		(31	)		-			-			-			(31	)
Capital contributions of parent		(46,348	)		5,587.00			25,318			15,443			-
Net cash provided by (used in) financing activities	$	(53,117	)	$	5,445		$	220,678		$	15,443		$	188,449
Net increase (decrease) in cash and cash equivalents		(10,875	)		87			(29,438	)		-			(40,226	)
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	$	2,757		$	6,377		$	87,961		$	-		$	97,095

26. Subsequent Events

On August 1, 2019, the Company’s board of directors declared cash distributions of $0.04 per share for the second quarter of 2019. The distribution is payable on August 30, 2019, to shareholders of record as of August 16, 2019. 

On July 1, 2019, JMP Holding LLC, a wholly-owned subsidiary of the Company, entered into an Amendment Number Five (the "Fifth Amendment") to the Second Amended and Restated Credit Agreement. The Fifth Amendment made various updates, clarifications and conforming changes to the Credit Agreement relating to changes in the business and corporate structure of the Company since the Credit Agreement was originally entered into by the Borrower. The Amendment also extends the maturity date of the line of credit to December 31, 2020.

On July 18, 2019, JMP Group Inc., a wholly-owned subsidiary of the Company, redeemed $11.0 million principal amount (440,000 units) of its issued and outstanding 8.00% Senior Notes due 2023. The redemption price was $25 per unit plus accrued and unpaid interest up to, but excluding, the redemption date of July 18, 2019.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the unaudited consolidated financial statements and the related notes included elsewhere in this report. For additional context with which to understand our financial condition and results of operations, see the MD&A for the fiscal year ended December 31, 2018 contained in our Form 10-K (the “Annual Report”), as well as the consolidated financial statements and notes contained therein.

Cautionary Statement Regarding Forward-Looking Statements

This MD&A and other sections of this Form 10-Q (the “Quarterly Report”) contain forward looking statements. We make forward-looking statements, as defined by the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, and in some cases you can identify these statements by forward-looking words such as “if,” “shall,” “may,” “might,” “will likely result,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “goal,” “objective,” “predict,” “potential” or “continue,” the negative of these terms, and other comparable terminology. These forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events that we believe to be reasonable. There are or may be important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the historical or future results, level of activity, performance or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, those discussed under the caption “Risk Factors” in our Annual Report. In preparing this MD&A, we presume that readers have access to and have read the MD&A in our Annual Report, pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K. We undertake no duty to update any of these forward-looking statements after the date of filing of this Quarterly Report to conform such forward-looking statements to actual results or revised expectations, except as otherwise required by law.

Deconsolidation of the CLOs and JMPCA

On January 17, 2019, the non-call period of JMP Credit Advisors CLO III(R) Ltd. (“CLO III”) expired, which resulted in a change in the entity with the control over the most significant activities of the variable interest entity (“VIE”). The expiration of the non-call period resulted in the Company losing control over the most significant activities of CLO III. The Company deconsolidated CLO III as of January 17, 2019. The Company continues to hold approximately 47% of the outstanding junior subordinated notes of CLO III and the Company accounts for its ownership of the CLO III subordinated notes as an investment in a CLO debt security and will recognize interest income based on the effective yield method. The Company recognized a gain of $1.6 million as revenue from principal transactions on the deconsolidation of CLO III for the six months ended June 30, 2019.

On March 19, 2019, the Company sold a 50.1% equity interest in JMP Credit Advisors LLC ("JMPCA") JMPCA to Medalist Partners LP (“Medalist”), an alternative asset management firm specializing in structured credit and asset-backed lending, and a 4.9% interest to management employees of JMPCA. JMP Holding LLC, a wholly-owned subsidiary of the Company, retained 45.0% of the equity interest in JMPCA. Due to the transaction JMPCA went through a reconsideration event as defined in Accounting Standard Codification (“ASC”) 810, Consolidation, and the Company determined that JMPCA is a VIE after the transaction date. The Company determined that we are not the primary beneficiary of JMPCA as we are not the party with the power to direct the most significant activities of JMPCA. As the Company was determined to not be the primary beneficiary, the Company deconsolidated JMPCA as of the date of sale. As the Company still retains 45.0% of the equity interest of JMPCA and has significant influence, the Company has determined that it will account for its retained interest as an equity method investment after the date of deconsolidation, however; the Company has made the election to use the fair value option to account for the investment. The Company received a cash payment of $0.3 million in consideration for the limited liability company interest and recorded a gain of $3.4 million on deconsolidation as revenue from principal transactions. As a result of the transaction, JMPCA has been renamed Medalist Partners Corporate Finance LLC. The transaction agreement also requires Medalist to provide additional capital to purchase an equity interest in CLO VI to finance the acquisition of broadly syndicated corporate loans, which resulted in Medalist related entities purchasing approximately 66% of the outstanding equity  interests of JMP Credit Advisors CLO VI Ltd ("CLO VI"). The Company will receive a portion of the subordinated management fees from the CLOs JMPCA manages.

After the sale of JMPCA, the Company concluded that it has lost the ability to direct the most significant activities of the VIEs: JMP Credit Advisors CLO IV Ltd. (“CLO IV”), JMP Credit Advisors CLO V Ltd. (“CLO V”), and JMP Credit Advisors CLO VI Ltd. ("CLO VI") (collectively with CLO III the “CLOs”) and also deconsolidated those CLOs as of March 19, 2019. The Company continues to hold 100% of the junior subordinated notes of CLO IV and CLO V and approximately 33% of the equity interests of CLO VI. The Company owned 100% and 25% of the senior subordinated notes in CLO IV and CLO V, respectively, at the date of deconsolidation. The Company sold all of its senior subordinated notes in CLO IV and CLO V in May 2019. The Company accounts for its ownership of the subordinated notes as a beneficial interest in a debt security and accounts for its equity interests of CLO VI as an equity investment. The Company classifies the junior subordinated notes as available-for-sale securities and classified the senior subordinated notes as trading securities up until their sale. Collectively, the Company recognized a loss on the deconsolidation of CLO IV, CLO V, and CLO VI of $1.8 million and a loss of $0.1 million on the sale of the senior subordinated notes of CLO IV and CLO V for the six months ended June 30, 2019 in revenues from principal transactions.

The Election for JMP Group LLC to be Taxed as a C Corporation

Since January 2015, JMP Group LLC had been a publicly traded partnership and, as such, was taxed as a partnership, and not as a corporation, for U.S. federal income tax purposes, so long as 90% or more of its gross income for each taxable year constitutes “qualifying income.” On January 31, 2019, the Company filed an election with the U.S. Internal Revenue Service to be treated as a C corporation for tax purposes, rather than as a partnership, going forward. The election was approved and became retroactively effective as of January 1, 2019. As a partnership, the Company has only paid taxes on a few taxable corporate holding subsidiaries.

An entity taxed as a partnership generally does not incur any U.S. federal income tax liability, and any income, gains, losses or deductions are taken in by the owners of the partnership in computing their U.S. federal income tax liability, regardless of any distributions from the partnership. In contrast, an entity treated as a corporation for U.S. federal income tax purposes generally pays U.S. federal income tax on its taxable income as it is considered a taxable entity. For years beginning after December 31, 2017, the maximum U.S. federal tax rate imposed on the net income of corporations is 21%. This rate may be subject to change in the future. Owners of a corporate entity generally do not incur any U.S. federal income tax liability on any earnings of the corporation unless the corporation makes a distribution of cash or property. Any distributions paid from current or accumulated earnings are treated as dividends, and these "qualifying dividends" are generally taxed at a lower rate than the ordinary income tax rate. Any distributions in excess of current or accumulated earnings are treated as nontaxable returns of capital which reduce the owner's tax basis in the corporation. Any remaining excess is treated as capital gain. For corporate entities, as both the corporation and distributions from the corporation are taxed, there are two levels of potential tax on the income earned.

Overview

JMP Group LLC, together with its subsidiaries (collectively, the “Company”, “we”, or “us”), is a diversified capital markets firm headquartered in San Francisco, California. We have a diversified business model with a focus on small and middle-market companies and provide:

• investment banking services, including corporate finance, mergers and acquisitions and other strategic advisory services, to corporate clients;

• sales and trading and related securities brokerage services to institutional investors;

• equity research coverage of four target industries;

• asset management products and services to institutional investors, high net-worth individuals and for our own account; and

• management of collateralized loan obligations (through March 19, 2019) and a specialty finance company.

Components of Revenues

We derive revenues primarily from: fees from our investment banking business, net commissions from our sales and trading business, management fees and incentive fees from our asset management business, and interest income earned on collateralized loan obligations we manage. We also generate revenues from principal transactions, interest, dividends and other income.

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Investment Banking

We earn investment banking revenues from underwriting securities offerings, arranging private capital markets transactions and providing advisory services in mergers and acquisitions and other strategic transactions.

Underwriting Revenues

We earn revenues from securities offerings in which we act as an underwriter, such as initial public offerings and follow-on equity offerings. Underwriting revenues include management fees, underwriting fees, selling concessions, and realized and unrealized net gains and losses on equity positions held in inventory for a period of time to facilitate the completion of certain underwritten offerings. We record underwriting revenues, gross of related syndicate expenses, on the trade date which is typically the date of pricing an offering (or the following day). The Company has determined that its performance obligations are completed and the related income is reasonably determinable on the trade date. In syndicated transactions, management estimates our share of transaction-related expenses incurred by the syndicate, and we recognize revenues gross of such expense. On final settlement by the lead manager, typically 90 days from the trade date of the transaction, we adjust these amounts to reflect the actual transaction-related expenses and our resulting underwriting fee. We receive a higher proportion of total fees in underwritten transactions in which we act as a lead manager.

Strategic Advisory Revenues

Our strategic advisory revenues primarily consist of success fees received upon the closing of mergers and acquisitions but also include retainer fees received when we are first engaged to provide advisory services. We also earn fees for related advisory work and other services, such as fairness opinions, valuation analyses, due diligence, and pre-transaction structuring advice. These revenues may be earned for providing services to either the buyer or the seller involved in a transaction. Depending on the nature of the engagement letter and the agreed upon services, customers may simultaneously receive and consume the benefits of services or services may culminate in the delivery of the advisory services at a point in time. The Company evaluates each contract individually and the performance obligations identified to determine if revenue should be recognized ratably over the term of the agreement or at a specific point in time. Any retainer fees received in connection with these agreements are individually evaluated and any unearned fees are deferred for revenue recognition.

Private Capital Markets and Other Revenues

We earn fees for private capital markets and other services in connection with transactions that are not underwritten, such as private placements of equity securities, private investments in public equity (“PIPE”) transactions and Rule 144A offerings. We record private placement revenues on the closing date of these transactions. Client reimbursements for costs associated for private placement fees are recorded gross within Investment banking and various expense captions, excluding compensation.

Since our investment banking revenues are generally recognized at the time of completion of a transaction or the services to be performed, these revenues typically vary between periods and may be affected considerably by the timing of the closing of significant transactions.

Brokerage Revenues

Our brokerage revenues include trading commissions paid by customers for purchases or sales of exchange-listed and over-the-counter (“OTC”) equity securities. Commissions resulting from equity securities transactions executed on behalf of customers are recorded on a trade date basis. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon, and the risks and rewards of ownership have been transferred to/from the customer.  Brokerage revenues also include net trading gains and losses that result from market-making activities and from our commitment of capital to facilitate customer transactions. Our brokerage revenues may vary between periods, in part depending on commission rates, trading volumes and our ability to deliver equity research and other value-added services to our clients. The ability to execute trades electronically, through the internet and through other alternative trading systems, has increased pressure on trading commissions and spreads across our industry. We expect this trend toward alternative trading systems and the related pricing pressure in the brokerage business to continue. We are, to some extent, compensated through brokerage commissions for the equity research and other value-added services we deliver to our clients. These “soft dollar” practices have been the subject of discussion among regulators, the investment banking community and our sales and trading clients. In particular, commission sharing arrangements have been adopted by some large institutional investors. In these arrangements, an institutional investor concentrates its trading with fewer “execution” brokers and pays a fixed amount for execution, with a designated amount set aside for payments to other firms for research or other brokerage services. Accordingly, trading volume directed to us by investors that enter into such arrangements may be reduced, or eliminated, but we may be compensated for our research and sales efforts through allocations of the designated amounts. Depending on the extent to which we agree to this practice and depending on our ability to enter into arrangements on terms acceptable to us, this trend would likely impair the revenues and profitability of our brokerage business by negatively affecting both volumes and trading commissions.

Asset Management Fees

We earn asset management fees for managing a family of investment partnerships, including hedge funds, hedge funds of funds, and private equity funds, a real estate fund, a capital debt fund, as well as a publicly traded specialty finance company, HCC. These fees include base management fees and incentive fees. Base management fees are generally determined by the fair value of the assets under management ("AUM") or the aggregate capital commitment and the fee schedule for each fund or account. Incentive fees are based upon the investment performance of the funds or accounts. For most of our funds, incentive fees equate to a percentage of the excess investment return above a specified high-water mark or hurdle rate over a defined period of time. For private equity funds, incentive fees equate to a percentage of the realized gain from the disposition of each portfolio investment in which each investor participates, which we earn after returning contributions by an investor for a portfolio investment. Some of these incentive fees are subject to contingent repayments to investors or clawback and cannot be recognized until it is probable that there will not be a significant reversal of revenue. Any such fees earned are deferred for revenue recognition until the contingency is removed or the Company determines that it is not probable that a significant reversal of revenue will occur. Generally, we do not earn management fees calculated on the basis of average AUM.

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As of June 30, 2019 the contractual base management fees earned from each of our investment funds or companies ranged between 1% and 2% of AUM or were between 1% and 2% of aggregate committed capital. The contractual incentive fees were generally 20%, subject to high-water marks, for the hedge funds; 5% to 20%, subject to high-water marks or a performance hurdle rate, for the hedge funds of funds; 20%, subject to high-water marks, for Harvest Growth Capital LLC (“HGC”) and Harvest Growth Capital II LLC (“HGC II”); and 30% for JMP Capital I LLC ("JMP Capital I"). Our asset management revenues are subject to fluctuations due to a variety of factors that are unpredictable, including the overall condition of the economy, the securities markets as a whole and our core sectors. These market and industry conditions can have a material effect on the inflows and outflows of AUM and on the performance of our asset management funds. For example, a significant portion of the performance-based or incentive fee revenues that we recognize are based on the value of securities held in the funds we manage. The value of these securities includes unrealized gains or losses that may change from one period to another.

 The Company sold the general partnership interest in the Harvest Small Cap Partners ("HSCP") fund entities to a newly formed entity owned by the portfolio manager of the HSCP funds. The sale closed on December 31, 2018 upon which the Company's investment management contracts with the HSCP funds terminated.  As a result, the Company's AUM decreased by $365.7 million on January 1, 2019. As part of the sale, the Company will receive a portion of the management and incentive fees generated by these funds over the next five years, subject to a limit on the total revenue share. The revenue share will be recognized as other income.

On March 19, 2019, the Company sold a 50.1% equity interest in JMPCA to Medalist, an alternative asset management firm specializing in structured credit and asset-backed lending, and a 4.9% interest to management employees of JMPCA. A wholly-owned subsidiary of the Company retains a 45.0% interest in JMPCA. Due to the sale of the majority of the equity interest and the loss of control over JMPCA, the Company deconsolidated JMPCA as of the date of sale and will no longer recognize asset management fees related to the CLOs. As a result of the transaction, JMPCA has been renamed Medalist Partners Corporate Finance LLC.

Prior to the sale of the majority equity interest in JMPCA, the asset management fees for the CLOs under management during the period consisted only of senior and subordinated base management fees. We recognize base management fees for the CLOs on a monthly basis over the period during which the collateral management services are performed. The base management fees for the CLOs are calculated as a percentage of the average aggregate collateral balances for a specified period. As we consolidate the CLO’s, the management fees earned at JMPCA from the CLOs are eliminated on consolidation in accordance with GAAP. For both the six months ended June 30, 2019 and 2018, the contractual senior and subordinated base management fees earned from CLO III were 0.33% of the average aggregate collateral balance. For both the six months ended June 30, 2019 and 2018, the contractual base and subordinated fees earned from CLO IV were 0.50% of the average aggregate collateral balance. For the six months ended June 30, 2018, the contractual base and subordinated fees earned from CLO V warehouse portfolio were 1.0% of the average equity contributions. For the six months ended June 30, 2019 the contractual base and subordinated fees earned from CLO V were 0.50% of the average aggregate collateral balance. For the six months ended June 30, 2019, the contractual base and subordinated fees earned from CLO VI warehouse portfolio were 1.0% of the average equity contributions.

The redemption provisions of our funds require at least 90 days’ advance notice. The redemption provisions do not apply to the CLOs.

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The following tables present certain information with respect to the investment funds managed by HCS, JMPAM, HCAP Advisors, CLOs managed by JMPCA (through March 19, 2019), and the Company's client assets under management:

(In thousands)	Assets Under Management (1) at				Company's Share of Assets Under Management at
	June 30,		December 31,		June 30,		December 31,
	2019		2018		2019		2018
Funds Managed by HCS, JMPAM, or HCAP Advisors:
Hedge Funds:
Harvest Small Cap Partners (2)	$	-	$	365,728	$	-	$	-
Harvest Agriculture Select (3)		76,237		68,591		203		490
Private Equity Funds:
Harvest Growth Capital LLC		23,502		20,189		1,001		876
Harvest Growth Capital II LLC		163,012		198,782		3,315		3,823
Harvest Intrexon Enterprise Fund		59,030		67,729		362		415
JMP Realty Partners I		39,782		39,782		2,832		2,832
JMP Realty Partners II		27,454		-		5,129		-
Other		23,793		20,924		N/A		N/A
Funds of Funds:
JMP Masters Fund (4)		2,111		2,371		4		5
Capital or Private Debt Capital:
Harvest Capital Credit Corporation		127,972		123,689		N/A		N/A
JMP Capital I		23,529		23,529		2,329		2,329
HCS, JMPAM, and HCAP Advisors Totals	$	566,422	$	931,314	$	15,175	$	10,770
CLOs Managed by JMPCA:
CLO III (5) (6)		-		360,086		N/A		N/A
CLO IV (5) (6)		-		450,594		N/A		N/A
CLO V (5) (6)		-		400,557		N/A		N/A
CLO VI warehouse (5) (6)		-		34,219		N/A		N/A
JMPCA Totals	$	-	$	1,245,456	$	N/A	$	N/A
Assets Under Management by Sponsored Funds: (7)
CLOs and CLO warehouse	$	1,363,427	$	-		N/A		N/A
Other asset management funds		3,744,621		3,449		N/A		N/A
Sponsored Funds Totals	$	5,108,048	$	3,449		N/A		N/A
JMP Group LLC Totals	$	5,674,470	$	2,180,219	$	15,175	$	10,770

(1)	For hedge funds, funds of funds, HGC, HGC II, Harvest Intrexon Enterprise Fund, and Other, assets under management represent the net assets of such funds. For JMP Realty Partners I, JMP Realty Partners II, and JMP Capital I, assets under management represent the commitment amount. For JMP Realty Partners I and JMP Realty Partners II the commitment amount is subject to the management fee calculation. For CLOs, assets under management represent the sum of the aggregate collateral balance and restricted cash to be reinvested in collateral, upon which management fees are earned.
(2)	The Company sold the general partnership interest in the HSCP fund entities to a newly formed entity owned by the portfolio manager of the HSCP funds. The sale closed on December 31, 2018 upon which the Company's investment management contracts with the HSCP funds terminated.  As part of the sale, the Company will receive contingent revenue generated by these funds over the next five years, subject to a limit on the total contingent revenue.
(3)	Harvest Agriculture Select (“HAS”) includes managed accounts in which the Company has neither equity investment nor control. These are included as they follow the respective funds’ strategy and earn fees.
(4)	JMP Masters began the process of liquidation on December 31, 2015.
(5)	On March 19, 2019 the Company sold a total of 55.0% of the equity interest in JMPCA. Due to the sale of the majority of the equity interest and the loss of control over JMPCA, the Company deconsolidated JMPCA as of the date of sale and will no longer recognize asset management fees related to the CLOs. As part of the sale, the subordinated management fee structure of CLOs III, IV and V were modified so that the Company will receive a portion of the subordinated management fees directly from the CLOs. Such subordinated management fees are recorded as other income.
(6)	CLO III, CLO IV, CLO V and CLO VI warehouse were consolidated in the Consolidated Statements of Financial Condition as of December 31, 2018. CLO III, CLO IV, CLO V and CLO VI were deconsolidated during the first quarter of 2019.
(7)	Sponsored funds are asset managers in which the Company owns an economic interest.

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(In thousands)	Three Months Ended June 30, 2019							Three Months Ended June 30, 2018
	Company's Share of Change in Fair Value			Management Fee		Incentive Fee		Company's Share of Change in Fair Value			Management Fee		Incentive Fee
Hedge Funds:
Harvest Small Cap Partners (1)	$	-		$	-	$	-	$	(10	)	$	1,612	$	2,017
Harvest Agriculture Select (2)		3			189		-		(30	)		225		-
Private Equity Funds:
Harvest Growth Capital LLC		201			-		-		110			-		-
Harvest Growth Capital II LLC		331			82		264		383			157		-
Harvest Intrexon Enterprise Fund		26			178		-		(4	)		176		-
JMP Realty Partners I		(316	)		110		479		48			89		-
JMP Realty Partners II		-			35		-		-			-		-
Other		-			6		-		-			7		1
Funds of Funds:
JMP Masters Fund (3)		-			5		-		-			7		-
Loans:
Harvest Capital Credit Corporation (4)		N/A			895		-		N/A			968		-
JMP Capital I		-			8		103		-			7		96
CLOs and Other:
CLO III (5) (6)		N/A			-		N/A		N/A			320		N/A
CLO IV (5) (6)		N/A			-		N/A		N/A			570		N/A
CLO V Warehouse (5) (6)		N/A			-		N/A		N/A			135		N/A
Totals	$	245		$	1,508	$	846	$	497		$	4,273	$	2,114

(1)	The Company sold the general partnership interest in the HSCP fund entities to a newly formed entity owned by the portfolio manager of the HSCP funds. The sale closed on December 31, 2018 upon which the Company's investment management contracts with the HSCP funds terminated.  As part of the sale, the Company will receive contingent revenue generated by these funds over the next five years, subject to a limit on the total contingent revenue.
(2)	HAS includes managed accounts in which the Company has neither equity investment nor control. These are included with the funds, as they follow the respective strategies and earn fees.
(3)	JMP Masters began the process of liquidation on December 31, 2015.
(4)	Management fees earned includes administrative services revenue.
(5)	On March 19, 2019 the Company sold a total of 55.0% of the equity interest in JMPCA. Due to the sale of the majority of the equity interest and the loss of control over JMPCA, the Company deconsolidated JMPCA as of the date of sale and will no longer recognize asset management fees related to the CLOs. As part of the sale, the subordinated management fee structure of CLOs III, IV and V were modified so that the Company will receive a portion of the subordinated management fees directly from the CLOs. Such subordinated management fees are recorded as other income.
(6)	Management and incentive fees earned from the CLOs and CLO warehouse were consolidated and then eliminated in the consolidation in the Company's Consolidated Statements of Operations. The CLOs and JMPCA were all deconsolidated in the first quarter of 2019.

(In thousands)	Six Months Ended June 30, 2019							Six Months Ended June 30, 2018
	Company's Share of Change in Fair Value			Management Fee		Incentive Fee		Company's Share of Change in Fair Value			Management Fee		Incentive Fee
Hedge Funds:
Harvest Small Cap Partners (1)	$	-		$	-	$	-	$	13		$	3,117	$	5,303
Harvest Agriculture Select (2)		51			366		-		(360	)		457		-
Private Equity Funds:
Harvest Growth Capital LLC		161			-		-		109			-		-
Harvest Growth Capital II LLC		(12	)		228		264		420			314		-
Harvest Intrexon Enterprise Fund		(53	)		354		-		(66	)		351		-
JMP Realty Partners I		504			215		479		58			179		-
JMP Realty Partners II		-			35		-		-			-		-
Other		-			12		-		-			17		80
Funds of Funds:
JMP Masters Fund (3)		-			10		-		-			14		-
Loans:
Harvest Capital Credit Corporation (4)		N/A			1,736		6		N/A			1,981		-
JMP Capital I		-			28		103		-			11		96
CLOs and Other:
CLO III (5) (6)		N/A			271		N/A		N/A			590		N/A
CLO IV (5) (6)		N/A			482		N/A		N/A			1,134		N/A
CLO V and CLO V warehouse (5) (6)		N/A			428		N/A		N/A			203		N/A
CLO VI Warehouse (5) (6)		N/A			13		N/A		N/A			-		N/A
Totals	$	651		$	4,178	$	852	$	174		$	8,368	$	5,479

(1)	The Company sold the general partnership interest in the HSCP fund entities to a newly formed entity owned by the portfolio manager of the HSCP funds. The sale closed on December 31, 2018 upon which the Company's investment management contracts with the HSCP funds terminated.  As part of the sale, the Company will receive contingent revenue generated by these funds over the next five years, subject to a limit on the total contingent revenue.
(2)	HAS includes managed accounts in which the Company has neither equity investment nor control. These are included with the funds, as they follow the respective strategies and earn fees.
(3)	JMP Masters began the process of liquidation on December 31, 2015.
(4)	Management fees earned includes administrative services revenue.
(5)	On March 19, 2019 the Company sold a total of 55.0% of the equity interest in JMPCA. Due to the sale of the majority of the equity interest and the loss of control over JMPCA, the Company deconsolidated JMPCA as of the date of sale and will no longer recognize asset management fees related to the CLOs. As part of the sale, the subordinated management fee structure of CLOs III, IV and V were modified so that the Company will receive a portion of the subordinated management fees directly from the CLOs. Such subordinated management fees are recorded as other income.
(6)	Management and incentive fees earned from the CLOs and CLO warehouse were consolidated and then eliminated in the consolidation in the Company's Consolidated Statements of Operations. The CLOs and JMPCA were all deconsolidated in the first quarter of 2019.

41

Principal Transactions

Principal transaction revenues include net realized and unrealized gains and losses resulting from our principal investments in equity and other securities for our own account as well as equity-linked warrants received from certain investment banking clients and limited partner investments in private funds managed by third parties. Principal transaction revenues also include earnings, or losses, attributable to interests in investment partnerships managed by our asset management subsidiaries, HCS and JMPAM, which are recorded using the fair value option and the net asset value practical expedient, or are accounted for using the equity method of accounting. Revenues also included unrealized gains and losses on investments that elect the fair option and unrealized gains and losses on the deconsolidation of businesses and investments. In addition, our principal transaction revenues include unrealized gains or losses on an investment in an entity that acquires buildings and land for the purpose of holding, managing and selling the properties and also include unrealized gains or losses on the investments in other private companies.

Gain (Loss) on Sale and Payoff of Loans

Gain (loss) on sale and payoff of loans consists of gains and losses from the sale and payoff of loans collateralizing asset-backed securities. Gains are recorded when the proceeds exceed the carrying value of the loan. Gain on sale, payoff and mark-to-market of loans also consists of the lower of cost or market adjustments arising from loans held for sale. Losses are recorded for a loan held for sale when the carrying value exceeds fair value.

Net Dividend Income

Net dividend income includes dividends from our investments offset by dividend expense resulting from short positions in our principal investment portfolio.

Other Income

Other income includes revenues from equity method investments, revenues from fee-sharing arrangements with our funds, contingent revenue from a sale of a general partnership, subordinated management fees earned on CLO investments, and fees earned to raise capital for third-party investment partnerships.

Interest Income

Interest income primarily consists of interest income earned on loans collateralizing asset-backed securities issued, investments in CLO equity tranches, and loans held for investment. Interest income on loans is comprised of the stated coupon as a percentage of the face amount receivable as well as accretion of purchase discounts and deferred fees. Interest income is recorded on an accrual basis, in accordance with the terms of the respective loans, unless such loans are placed on non-accrual status.

On January 17, 2019, the non-call period for CLO III expired and the Company lost the ability to direct the most significant activities of CLO III. As a result, the Company deconsolidated CLO III as of January 17, 2019 and ceased recognizing interest income on loans collateralizing asset-backed securities for CLO III as of the date of sale.

On March 19, 2019, the Company sold a total of 55.0% of the equity interest in JMPCA. Due to the sale of the majority of the equity interest and the loss of control over the CLO IV, CLO V, and the CLO VI warehouse, the Company deconsolidated these entities and ceased recognizing interest income on loans collateralizing asset-backed securities as of the date of sale for CLO IV, CLO V, and CLO VI. After deconsolidation of the CLOs and the CLO VI warehouse, the Company accounted for its ownership of the subordinated notes of the CLOs as beneficial interests in debt securities and recorded interest income on those instruments using the effective-yield method.

Interest Expense

Interest expense primarily consists of interest expense related to asset-backed securities issued, Senior Notes, lines of credit, and notes payable, as well as the amortization of bond issuance costs. Interest expense on asset-backed securities is the stated coupon payable as a percentage of the principal amount. Interest expense is recorded on an accrual basis, in accordance with the terms of the respective debt instruments. Due to deconsolidation of the CLOs and the CLO VI warehouse in the first quarter of 2019, the Company ceased recording interest expense on asset-backed securities issued as of January 17, 2019 for CLO III and on March 19, 2019, for CLO IV, CLO V, and CLO VI warehouse.

Provision for Loan Losses

Provision for loan losses includes the provision for losses recognized on our loan notes and non-revolving credit agreements at JMP Capital LLC, JMP Investment Holdings LLC, and JMP Group Inc., (collectively loans held for investment) and on loans collateralizing asset-backed securities (“ABS”) in order to record the loans held for investment and ABS at their estimated net realizable value. We maintain an allowance for loan losses that is intended to estimate loan losses inherent in the loans held for investment’s and the CLO's loan portfolio. A provision for loan losses is charged to expense to establish the allowance for loan losses. The allowance for loan losses is maintained at a level, in the opinion of management, sufficient to offset estimated losses inherent in the loan portfolio as of the date of the financial statements. The appropriateness of the allowance and the allowance components are reviewed quarterly. Our estimate of each allowance component is based on observable information and on market and third-party data that we believe are reflective of the underlying loan losses being estimated. We employ internally developed and third-party estimation tools for measuring credit risk (loan ratings, probability of default, and exposure at default).

A specific reserve is provided for loans that are considered impaired. A loan is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. We measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral securing the loan, if the loan is collateral-dependent, depending on the circumstances and our collection strategy. For loans deemed impaired at the date of acquisition, if there is a further decline in expected future cash flows, this reduction is recognized as a specific reserve in accordance with the guidance above. For those loans deemed impaired subsequent to the acquisition date, if the net realizable value is lower than the current carrying value, the carrying value is reduced, and the difference is booked as a provision for loan losses. If the total discount from unpaid principal balance to carrying value is larger than the expected loss at the date of assessment, no provision for loan losses is recognized.

Loans which are deemed to be uncollectible are charged off, and the charged-off amount is deducted from the allowance.

Due to the deconsolidation of the CLOs and the CLO VI warehouse in the first quarter of 2019, the Company ceased recording provisions for loan losses on the loans collateralizing ABS issued and the loans held for investment in the warehouse.

42

Components of Expenses

We classify our expenses as compensation and benefits; administration; brokerage, clearing and exchange fees; travel and business development; communications and technology; occupancy; professional fees, depreciation, impairment loss on purchased management contract, and other. A significant portion of our expense base is variable, including compensation and benefits; brokerage, clearing and exchange fees; travel and business development; and communication and technology expenses.

Compensation and Benefits

Compensation and benefits is the largest component of our expenses and includes employees’ base pay, performance bonuses, sales commissions, related payroll taxes, equity-based compensation, and medical and benefits expenses, as well as expenses for contractors and temporary employees. Our employees receive a substantial portion of their compensation in the form of an individual, performance-based bonus. As is the widespread practice in our industry, we pay bonuses on an annual basis, and for senior professionals these bonuses typically make up a large portion of their total compensation. A portion of the performance-based bonuses paid to certain senior professionals is paid in the form of deferred compensation. Bonus payments may have a greater impact on our cash position and liquidity in the periods in which they are paid than would otherwise be reflected in our Consolidated Statements of Operations. We accrue for the estimated amount of these bonus payments ratably over the applicable service period.

Compensation is accrued with specific ratios of total compensation and benefits to total revenues applied to specific revenue categories, with adjustments made if, in management’s opinion, such adjustments are necessary and appropriate to maintain competitive compensation levels.

Administration

Administration expense primarily includes the cost of hosted conferences, non-capitalized systems and software expenditures, insurance, business tax (non-income), office supplies, recruiting, and regulatory fees.

Brokerage, Clearing and Exchange Fees

Brokerage, clearing and exchange fees include the cost of floor and electronic brokerage and execution, securities clearance, and exchange fees. Changes in brokerage, clearing and exchange fees fluctuate largely in line with the volume of our sales and trading activity.

Travel and Business Development

Travel and business development expense is net of expenses reimbursed by clients.

Managed Deal Expenses

Managed deal expenses primarily relate to costs incurred and/or allocated in the execution of investment banking transactions, including reimbursable costs.

Communications and Technology

Communications and technology expense primarily relates to the cost of communication and connectivity, information processing, and subscriptions to certain market data feeds and services.

Occupancy Expenses

Occupancy costs primarily include payments made under operating leases that are recognized on a straight-line basis over the period of the lease.

Professional Fees

         Professional fees primarily relate to legal and accounting professional services.

Depreciation

Depreciation expenses include the straight-line amortization of purchases of certain furniture and fixtures, computer and office equipment, certain software costs, and leasehold improvements to allocate their depreciation amounts over their estimated useful life.

Other Expenses

Other operating expenses primarily include occupancy, depreciation, and CLO administration expense at JMP Investment Holdings.

Income Taxes

Since January 2015, JMP Group LLC had been a publicly traded partnership and, as such, was taxed as a partnership, and not as a corporation, for U.S. federal income tax purposes, so long as 90% or more of its gross income for each taxable year constitutes “qualifying income.” On January 31, 2019, the Company filed an election with the U.S. Internal Revenue Service to be treated as a C corporation for tax purposes, rather than a partnership, going forward. The election was approved and became retroactively effective as of January 1, 2019. As a partnership, the Company has only paid taxes on a few taxable corporate holding subsidiaries.

The Company recognizes deferred tax assets and liabilities in accordance with ASC 740, Income Taxes, which are determined based upon the temporary differences between the financial reporting and tax basis of the Company’s assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce the deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will not be realized.

43

The Company records uncertain tax positions using a two-step process: (i) the Company determines whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than fifty percent likely to be realized upon ultimate settlement with the related tax authority

The Company’s policy for recording interest and penalties associated with the tax audits or unrecognized tax benefits, if any, is to record such items as a component of income tax.

Non-controlling Interest

 Non-controlling interest for the three months ended June 30, 2019 includes the interest of third parties in HCS Strategic Investments LLC ("HCS SI") and HCAP Advisors. Non-controlling interest for the three months ended June 30, 2018 includes the interest of third parties in CLO III, HCS SI, and HCAP Advisors. Non-controlling interest for both the six months ended June 30, 2019 and 2018 includes the interest of third parties in CLO III (through January 17, 2019), HCS SI, and HCAP Advisors, partially-owned subsidiaries consolidated in our financial statements. 

          The Company currently manages several asset management funds, which are structured as limited partnerships, and is the general partner of each. The Company assesses whether the partnerships meet the definition of VIEs in accordance with ASC 810-10-15-14 and whether the Company qualifies as the primary beneficiary. Funds determined not to meet the definition of a VIE are considered voting interest entities, for which the rights of the limited partners are evaluated to determine if consolidation is necessary. Such guidance provides that the presumption that the general partner controls the limited partnership may be overcome if the limited partners have substantive kick-out rights.

       The Company had determined CLO III to be a variable interest entity and identified itself as the primary beneficiary, based on its ability to direct activities of CLO III through its subsidiary manager, JMP Credit Advisors, and its equity ownership. As of December 31, 2018 the Company’s ownership of unsecured subordinated notes was 46.7%. On January 17, 2019, the non-call period for CLO III expired and the Company lost the ability to direct the most significant activities of CLO III. As a result, the Company deconsolidated CLO III as of January 17, 2019 and ceased recognizing any non-controlling interest.

HCAP Advisors was formed on December 18, 2012. HCAP Advisors appointed JMP Holding LLC as its Manager effective May 1, 2013 and began offering investment advisory services. The Company owned a 51.0% equity interest in the entity until April 27, 2018 when the Company purchased an additional 18.4% of HCAP Advisors, equity from a non-controlling interest holder. As of April 27, 2018, the Company owns a 69.4% of equity interest in the entity. The Company was identified as the primary beneficiary, based on the ability to direct activities of HCAP Advisors as the Manager and its equity ownership.

HCS SI was formed on September 27, 2017. The purpose of HCS SI is to purchase, hold, and sell portfolio securities. On November 20, 2017, HCS SI made an investment in an investment advisor to purchase approximately 25.0% of the issued and outstanding equity securities. On January 9, 2018, a debt fund purchased 30% of the investment series in the investment advisor for $0.4 million and the Company's ownership percentage of HCS SI was reduced to 70%.

Results of Operations

The following table sets forth our results of operations for the three and six months ended June 30, 2019 and 2018, and is not necessarily indicative of the results to be expected for any future period.

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,						Three Month Change From 2018 to 2019						Six Month Change From 2018 to 2019
	2019			2018			2019			2018			$			%			$			%
Revenues
Investment banking	$	17,736		$	28,562		$	29,615		$	49,224		$	(10,826	)		-37.9	%	$	(19,609	)		-39.8	%
Brokerage		4,657			5,447			9,192			10,111			(790	)		-14.5	%		(919	)		-9.1	%
Asset management fees		2,354			5,378			4,057			11,803			(3,024	)		-56.2	%		(7,746	)		-65.6	%
Principal transactions		1,423			1,684			6,711			(1,936	)		(261	)		-15.5	%		8,647			446.6	%
Loss on sale, payoff and mark-to-market of loans		(21	)		(150	)		(38	)		(332	)		129			86.0	%		294			88.6	%
Net dividend income		293			319			589			615			(26	)		-8.2	%		(26	)		-4.2	%
Other income		793			311			758			360			482			155.0	%		398			110.6	%
Non-interest revenues		27,235			41,551			50,884			69,845			(14,316	)		-34.5	%		(18,961	)		-27.1	%
Interest income		2,772			15,669			17,063			28,379			(12,897	)		-82.3	%		(11,316	)		-39.9	%
Interest expense		(1,939	)		(11,634	)		(12,712	)		(21,336	)		9,695			83.3	%		8,624			40.4	%
Net interest income		833			4,035			4,351			7,043			(3,202	)		-79.4	%		(2,692	)		-38.2	%
Loss on repurchase, reissuance, or early retirement of debt		-			(42	)		-			(2,668	)		42			N/A			2,668			100.0	%
Provision for loan losses		-			(1,280	)		-			(2,745	)		1,280			N/A			2,745			100.0	%
Total net revenues after provision for loan losses		28,068			44,264			55,235			71,475			(16,196	)		-36.6	%		(16,240	)		-22.7	%
Non-interest expenses
Compensation and benefits		19,945			29,138			37,167			53,399			(9,193	)		-31.5	%		(16,232	)		-30.4	%
Administration		2,748			2,711			4,677			4,944			37			1.4	%		(267	)		-5.4	%
Brokerage, clearing and exchange fees		733			788			1,434			1,565			(55	)		-7.0	%		(131	)		-8.4	%
Travel and business development		1,347			1,202			2,368			2,156			145			12.1	%		212			9.8	%
Managed deal expenses		1,334			2,348			1,867			3,914			(1,014	)		-43.2	%		(2,047	)		-52.3	%
Communication and technology		1,127			1,047			2,180			2,109			80			7.6	%		71			3.4	%
Occupancy		1,409			1,143			2,832			2,260			266			23.3	%		572			25.3	%
Professional fees		821			1,138			2,277			3,043			(317	)		-27.9	%		(766	)		-25.2	%
Depreciation		311			287			608			551			24			8.4	%		57			10.3	%
Other		5			776			500			1,163			(771	)		-99.4	%		(663	)		-57.0	%
Total non-interest expenses		29,780			40,578			55,910			75,104			(10,798	)		-26.6	%		(19,194	)		-25.6	%
Income (loss) before income tax expense		(1,712	)		3,686			(675	)		(3,629	)		(5,398	)		-146.4	%		2,954			81.4	%
Income tax expense (benefit)		(517	)		4,895			(4,619	)		(673	)		(5,412	)		-110.6	%		(3,946	)		-586.3	%
Net income (loss)		(1,195	)		(1,209	)		3,944			(2,956	)		14			1.2	%		6,900			233.4	%
Less: Net income (loss) attributable to non-controlling interest		(83	)		779			(13	)		(685	)		(862	)		-110.7	%		672			98.1	%
Net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957		$	(2,271	)	$	876			44.1	%		6,228			274.2	%

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Operating Net Income (Non-GAAP Financial Measure)

Management uses Operating Net Income as a key, non-GAAP metric when evaluating the performance of JMP Group LLC’s core business strategy and ongoing operations, as management believes that this metric appropriately illustrates the operating results of JMP Group LLC’s core operations and business activities. Operating Net Income is derived from our segment reported results and is the measure of segment profitability on an after-tax basis used by management to evaluate our performance. This non-GAAP measure is presented to enhance investors’ overall understanding of the Company’s current financial performance. Additionally, management believes that Operating Net Income is a useful measure because it allows for a better evaluation of the performance of JMP Group LLC’s ongoing business and facilitates a meaningful comparison of the Company’s results in a given period to those in prior and future periods.

However, Operating Net Income should not be considered a substitute for results that are presented in a manner consistent with GAAP. A limitation of the non-GAAP financial measures presented is that, unless otherwise indicated, the adjustments concern gains, losses or expenses that JMP Group LLC generally expects to continue to recognize, and the adjustment of these items should not always be construed as an inference that these gains or expenses are unusual, infrequent or non-recurring. Therefore, management believes that both JMP Group LLC’s GAAP measures of its financial performance and the respective non-GAAP measures should be considered together. Operating Net Income may not be comparable to a similarly titled measure presented by other companies.

Operating Net Income is a non-GAAP financial measure that adjusts the Company’s GAAP net income as follows:

(i) reverses share-based compensation expense recognized under GAAP related to equity awards granted in prior periods, as management generally evaluates performance by considering the full expense of equity awards in the period in which they are granted, even if the expense of such compensation will be recognized in future periods under GAAP;

(ii) recognizes 100% of the cost of deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, in order to match compensation expense with the actual period upon which the compensation was based;

(iii) reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III prior to the first quarter of 2019;

(iv) unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization;

(v) reverses net unrealized gains and losses on strategic equity investments and warrant positions;

(vi) excludes general loan loss provisions related to the CLOs prior to the first quarter of 2019;

(vii) reverses the one-time transaction costs related to the refinancing of the debt;

(viii) reverses one-time expenses associated with the redemption of debt underlying the CLOs, the redemption of other debt, and the resulting acceleration of the amortization of remaining capitalized issuance costs for each;

(ix)  as of the quarter and year ended June 30, 2019, a combined federal, state and local income tax rate of 26% at the consolidated taxable parent company, JMP Group LLC, while, prior to the quarter and year ended June 30, 2019, a combined federal, state and local income tax rate of 26% at the taxable direct subsidiary of the Company and a tax rate of 0% at the company’s other direct subsidiary, which was a “pass-through entity” for tax purposes.  

(x) presents revenues and expenses on a basis that deconsolidates the CLOs and removes any non-controlling interest in consolidated but less than wholly owned subsidiaries.

45

Discussed below is our Operating Net Income by segment. This information is reflected in a manner utilized by management to assess the financial operations of the Company's various business lines.

	Three Months Ended June 30, 2019
(In thousands)	Broker-Dealer			Asset Management									Corporate Costs			Eliminations			Total Segments
				Asset Management Fee Income			Investment Income			Total Asset Management
Revenues
Investment banking	$	17,736		$	-		$	-		$	-		$	-		$	-		$	17,736
Brokerage		4,657			-			-			-			-			-			4,657
Asset management related fees		6			2,536			323			2,859			-			(34	)		2,831
Principal transactions		-			-			1,492			1,492			-			-			1,492
Loss on sale, payoff, and mark-to-market of loans		-			-			(21	)		(21	)		-			-			(21	)
Net dividend income		-			-			331			331			-			-			331
Net interest income		-			-			816			816			-			-			816
Adjusted net revenues		22,399			2,536			2,941			5,477			-			(34	)		27,842
Non-interest expenses
Non-interest expenses		23,458			2,883			495			3,378			1,982			(34	)		28,784
Operating pre-tax net income (loss)		(1,059	)		(347	)		2,446			2,099			(1,982	)		-			(942	)
Income tax expense (benefit)		(275	)		(90	)		635			545			(515	)		-			(245	)
Operating net income (loss)	$	(784	)	$	(257	)	$	1,811		$	1,554		$	(1,467	)	$	-		$	(697	)

	Three Months Ended June 30, 2018
(In thousands)	Broker-Dealer		Asset Management									Corporate Costs			Eliminations			Total Segments
			Asset Management Fee Income			Investment Income			Total Asset Management
Revenues
Investment banking	$	28,562	$	-		$	-		$	-		$	-		$	-		$	28,562
Brokerage		5,447		-			-			-			-			-			5,447
Asset management related fees		6		4,572			2,017			6,589			-			(1,168	)		5,427
Principal transactions		-		-			1,404			1,404			-			-			1,404
Loss on sale, payoff, and mark-to-market of loans		-		-			(203	)		(203	)		-			-			(203	)
Net dividend income		-		-			338			338			-			-			338
Net interest income		-		-			2,927			2,927			-			-			2,927
Loss on repurchase, reissuance, or early retirement of debt		-		-			(42	)		(42	)		-			-			(42	)
Provision for loan losses		-		-			(37	)		(37	)		-			-			(37	)
Adjusted net revenues		34,015		4,572			6,404			10,976			-			(1,168	)		43,823
Non-interest expenses
Non-interest expenses		30,410		4,756			3,372			8,128			2,573			(1,168	)		39,943
Operating pre-tax net income (loss)		3,605		(184	)		3,032			2,848			(2,573	)		-			3,880
Income tax expense (benefit)		937		(48	)		(27	)		(75	)		(366	)		-			496
Operating net income (loss)	$	2,668	$	(136	)	$	3,059		$	2,923		$	(2,207	)	$	-		$	3,384

	Six Months Ended June 30, 2019
(In thousands)	Broker-Dealer			Asset Management									Corporate Costs			Eliminations			Total Segments
				Asset Management Fee Income			Investment Income			Total Asset Management
Revenues
Investment banking	$	29,615		$	-		$	-		$	-		$	-		$	-		$	29,615
Brokerage		9,192			-			-			-			-			-			9,192
Asset management related fees		12			4,897			369			5,266			-			(1,048	)		4,230
Principal transactions		-			-			6,879			6,879			-			-			6,879
Loss on sale, payoff, and mark-to-market of loans		-			-			(39	)		(39	)		-			-			(39	)
Net dividend income		-			-			666			666			-			-			666
Net interest income		-			-			4,139			4,139			-			-			4,139
Adjusted net revenues		38,819			4,897			12,014			16,911			-			(1,048	)		54,682
Non-interest expenses
Non-interest expenses		41,358			5,973			3,044			9,017			4,042			(1,048	)		53,369
Operating pre-tax net income (loss)		(2,539	)		(1,076	)		8,970			7,894			(4,042	)		-			1,313
Income tax expense (benefit)		(660	)		(281	)		2,332			2,051			(1,050	)		-			341
Operating net income (loss)	$	(1,879	)	$	(795	)	$	6,638		$	5,843		$	(2,992	)	$	-		$	972

	Six Months Ended June 30, 2018
(In thousands)	Broker-Dealer		Asset Management									Corporate Costs			Eliminations			Total Segments
			Asset Management Fee Income			Investment Income			Total Asset Management
Revenues
Investment banking	$	49,223	$	-		$	-		$	-		$	-		$	2		$	49,225
Brokerage		10,111		-			-			-			-			-			10,111
Asset management related fees		10		8,561			5,302			13,863			-			(2,149	)		11,724
Principal transactions		-		-			121			121			-			-			121
Loss on sale, payoff, and mark-to-market of loans		-		-			(364	)		(364	)		-			-			(364	)
Net dividend income		-		-			665			665			-			-			665
Net interest income		-		-			5,054			5,054			-			-			5,054
Loss on repurchase, reissuance, or early retirement of debt		-		-			(42	)		(42	)		-			-			(42	)
Provision for loan losses		-		-			(930	)		(930	)		-			-			(930	)
Adjusted net revenues		59,344		8,561			9,806			18,367			-			(2,147	)		75,564
Non-interest expenses
Non-interest expenses		53,326		9,776			7,561			17,337			4,831			(2,149	)		73,345
Operating pre-tax net income (loss)		6,018		(1,215	)		2,245			1,030			(4,831	)		2			2,219
Income tax expense (benefit)		1,564		(316	)		(135	)		(451	)		(647	)		-			466
Operating net income (loss)	$	4,454	$	(899	)	$	2,380		$	1,481		$	(4,184	)	$	2		$	1,753

46

The following table reconciles operating net income (loss) to Total Segments operating pre-tax net income, and also to consolidated pre-tax net income (loss) attributable to JMP Group LLC and to consolidated net income (loss) attributable to JMP Group LLC for the three months and six months ended June 30, 2019 and 2018.

(In thousands)	Three Months Ended June 30,
	2019			2018
Consolidated net loss attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)
Income tax expense (benefit)		(517	)		4,895
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907
Addback (subtract):
Share-based awards and deferred compensation		(587	)		(69	)
General loan loss provision – CLOs, CLO warehouse		-			(1,164	)
CLO refinancing costs		-			10
Amortization of intangible asset – CLO III		-			(69	)
Unrealized gain (loss) in real estate fund investment – depreciation and amortization		(221	)		24
Unrealized mark-to-market gain on strategic equity investments		121			295
Total consolidation adjustments and reconciling items		(687	)		(973	)
Total segments adjusted operating pre-tax net income (loss)	$	(942	)	$	3,880
Subtract (addback) of segment income tax expense (benefit)		(245	)		496
Operating net income (loss)	$	(697	)	$	3,384

(In thousands)	Six Months Ended June 30,
	2019			2018
Consolidated net income (loss) attributable to JMP Group LLC	$	3,957		$	(2,271	)
Income tax benefit		(4,619	)		(673	)
Consolidated pre-tax net loss attributable to JMP Group LLC	$	(662	)	$	(2,944	)
Addback (subtract):
Share-based awards and deferred compensation		(1,431	)		(213	)
General loan loss provision – CLOs, CLO warehouse		-			(1,493	)
Early retirement/reissuance		-			(1,318	)
CLO refinancing costs		-			(54	)
Amortization of intangible asset – CLO III		(277	)		(138	)
Unrealized gain (loss) in real estate fund investment – depreciation and amortization		(778	)		(1,604	)
Unrealized mark-to-market (gain) loss on strategic equity investments		511			(343	)
Total consolidation adjustments and reconciling items		(1,975	)		(5,163	)
Total segments adjusted operating pre-tax net income	$	1,313		$	2,219
Subtract of segment income tax expense		341			466
Operating net income	$	972		$	1,753

Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018

Overview

Total net revenues after provision for loan losses was $44.3 million for the quarter ended June 30, 2018 and $28.1 million for the same period in 2019.

Non-interest revenues decreased $14.4 million, or 34.5%, from $41.6 million for the quarter ended June 30, 2018 to $27.2 million in the same period in 2019. This decrease was driven by a $10.8 million decrease in investment banking revenues and a $3.0 million decrease in asset management revenues.

Net interest income decreased $3.2 million, or 79.4%, from $4.0 million for the quarter ended June 30, 2018 to $0.8 million for the quarter ended June 30, 2019. The decrease in net interest income was due to the deconsolidation of the CLOs during the three month period ended March 31, 2019.

Provision for loan losses decreased $1.3 million from a provision of $1.3 million for the quarter ended June 30, 2018 to zero for the quarter ended June 30, 2019. The decrease in provision of loan losses was due to the deconsolidation of the CLOs during the three months ended March 31, 2019. 

Total non-interest expenses decreased $10.8 million, or 26.6%, from $40.6 million for the quarter ended June 30, 2018 to $29.8 million for the quarter ended June 30, 2019, primarily due to a $9.2 million decrease in compensation and benefits, a $1.0 million decrease in managed deal expenses, and a $0.8 million decrease in other expenses. 

Net income attributable to non-controlling interest decreased $0.9 million, or 110.7%, from net income of $0.8 million for the quarter ended June 30, 2018 to a net loss of $0.1 million for the quarter ended June 30, 2019. The decrease in net income attribute to non-controlling interest holders is due to the deconsolidation of CLO III during the three months ended March 31, 2019. 

Net income attributable to JMP Group LLC increased $0.9 million from a net loss of $2.0 million for the quarter ended June 30, 2018 to a net loss of $1.1 million for the quarter ended June 30, 2019. The increase in net income attributable to JMP Group LLC was primarily due to the decrease in net income attributable to non-controlling interest holders due to deconsolidation of CLO III during the three months ended March 31, 2019. 

Revenues

Investment Banking

Investment banking revenues, earned in our Broker-Dealer segment, decreased $10.8 million, or 37.9%, from $28.6 million for the quarter ended June 30, 2018 to $17.8 million for the same period in 2019. As a percentage of total net revenues after provision for loan losses, investment banking revenues decreased from 64.5% for the quarter ended June 30, 2018 to 63.2% for the quarter ended June 30, 2019. On an operating basis, investment banking revenues were 63.7% and 65.2% for the quarters ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

(Dollars in thousands)	Three Months Ended June 30,								Change from 2019 to 2018
	2019				2018
	Count		Revenues		Count		Revenues		Count				$		%
Equity and debt origination		25	$	12,328		31	$	24,049		(6	)	$	(11,721	)		-48.7	%
Strategic advisory and private placements		3		5,408		6		4,513		(3	)		895			19.8	%
Total		28	$	17,736		37	$	28,562		(9	)	$	(10,826	)		-37.9	%

The decrease in revenues was driven by a 24.3% decrease in the number of transactions executed and a 17.9% decrease in the average size of the fee paid per transaction. The number of transactions in which we acted as a bookrunning manager was seven for both of the quarters ended June 30, 2019 and 2018.

Brokerage Revenues

Brokerage revenues earned in our Broker-Dealer segment decreased from $5.4 million for the quarter ended June 30, 2018 to $4.7 million for the quarter ended June 30, 2019. Brokerage revenues increased as a percentage of total net revenues after provision for loan losses, from 12.3% for the quarter ended June 30, 2018 to 16.6% for the quarter ended June 30, 2019. On an operating basis, brokerage revenues were 16.7% and 12.4% for the quarters ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

47

Asset Management Fees

(In thousands)	Three Months Ended June 30,
	2019			2018
Base management fees:
Fees reported as asset management fees	$	1,508		$	3,264
Less: Non-controlling interest in HCAP Advisors		(275	)		(220	)
Total base management fees		1,233			3,044
Incentive fees:
Fees reported as asset management fees	$	846		$	2,114
Less: Non-controlling interest in HCAP Advisors		-			-
Total incentive fees		846			2,114
Other fee income:
Fundraising fees and other	$	793		$	311
Less: Non-controlling interest in HCAP Advisors		(41	)		(42	)
Total other fee income		752			269
Asset management related fees:
Fees reported as asset management fees	$	2,354		$	5,378
Fees reported as other income		793			311
Less: Non-controlling interest in HCAP Advisors		(316	)		(262	)
Total segment asset management related fee revenues	$	2,831		$	5,427

Fees reported as asset management fees were $2.4 million and $5.4 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, asset management revenues decreased from 12.1% for the quarter ended June 30, 2018 to 8.4% for the quarter ended June 30, 2019. Asset management fees decreased from the quarter ended June 30, 2018 due to the sale of the HSCP entities on December 31, 2018 which resulted in a decrease of approximately $360.0 million in assets under management.

Total segment asset management-related fees include base management fees and incentive fees from our funds, HCC and CLOs under management (through March 19, 2019), as well as other income from fee-sharing arrangements with, and fees earned to raise capital for, third-party or equity-method investment partnerships or funds. Total segment asset management-related fee revenues are reconciled to the GAAP measure, total asset management fee revenues, in the table above. We believe that presenting operating asset management-related fees is useful to investors as a means of assessing the performance of our combined asset management activities, including fundraising and other services for third parties. We believe that segment asset management-related fee revenues provides useful information by indicating the relative contributions of base management fees and performance-related incentive fees, thus facilitating a comparison of those fees in a given period to those in prior and future periods. We also believe that asset management-related fee revenue is a more meaningful measure than standalone asset management fees as reported, because asset management-related fee revenues represent the combined impact of the various asset management activities on the Company’s total net revenues.

Total segment asset management related fee revenue decreased $2.6 million, from $5.4 million for the quarter ended June 30, 2018 to $2.8 million for the quarter ended June 30, 2019. Total base management fees were $1.2 million and $3.0 million for the quarters ended June 30, 2019 and 2018, respectively. Total incentive fees decreased from $2.1 million for the quarter ended June 30, 2018 to $0.8 million for the same period in 2019. On an operating basis, asset management related fee revenues were 10.2% and 12.4% for the quarters ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

48

Principal Transactions

Principal transaction revenues decreased $0.3million, from a gain of $1.7 million for the quarter ended June 30, 2018 to a gain of $1.4 million for the same period in 2019. As a percentage of total net revenues after provision for loan losses, principal transaction revenues were 3.8% for the quarter ended June 30, 2018 and 5.1% for the quarter ended June 30, 2019.

Total segment principal transaction revenues increased from a $1.4 million for the quarter ended June 30, 2018 to a $1.5 million for the same period in 2019. Total segment principal transaction revenues are a non-GAAP financial measure that aggregates our segment reported principal transaction revenues across each segment. The principal transaction revenues for both 2019 and 2018 were based in our Investment Income segment. Total segment principal transaction revenues are reconciled to the GAAP measure, total principal transaction revenues, in the table below. See the Operating Net Income section above for additional information on the adjustments made to arrive at the non-GAAP measure and why management believes that this non-GAAP number is useful and important to the users of these financial statements.

(In thousands)	Three Months Ended June 30,
	2019			2018
Equity and other securities	$	(92	)	$	(399	)
Warrants and other investments		1,052			1,311
Investment partnerships		532			492
Total segment principal transaction revenues		1,492			1,404
Operating adjustment addbacks		(69	)		280
Total principal transaction revenues	$	1,423		$	1,684

The decrease in principal transaction revenue is primarily attributed to a $0.5 million decrease in revenues from other investments in the quarter ended June 30, 2018 compared to the same period in 2019. A large gain was recorded in the second quarter of 2018 related to the disposition of an investment and no such dispositions occurred in the second quarter of 2019. On an operating basis, as a percentage of adjusted net revenues, principal transaction revenues increased from 3.2% for the quarter ended June 30, 2018 to 5.4% for the quarter ended June 30, 2019.

Gain and Loss on Sale and Payoff of Loans

Loss on sale and payoff of loans decreased from a loss of $0.2 million for the quarter ended June 30, 2018 to a loss of $21 thousand for the quarter ended June 30, 2019. Gain and loss on sale and payoff of loans was incurred in our Investment Income segment. On a segment basis, loss on sale and payoff of loans decreased from a loss of $0.2 million for the quarter ended June 30, 2018 to $21 thousand for the quarter ended June 30, 2019.

Net Dividend Income

Net dividend income was $0.3 million for both of the quarters ended June 30, 2019 and 2018. Net dividend income primarily related to dividends from our HCC investment.

49

Net Interest Income/Expense

(In thousands)	Three Months Ended June 30,
	2019			2018
CLO III loan contractual interest income	$	-		$	5,387
CLO III ABS issued contractual interest expense		-			(3,229	)
Net CLO III contractual interest		-			2,158
CLO IV loan contractual interest income	$	-		$	6,674
CLO IV ABS issued contractual interest expense		-			(4,796	)
Net CLO IV contractual interest		-			1,878
CLO V loan contractual interest income	$	-		$	3,287
CLO V warehouse/ABS issued contractual interest expense		-			(1,689	)
Net CLO V contractual interest		-			1,598
CLO VI loan contractual interest income	$	-		$	-
CLO VI warehouse credit facility contractual interest expense		-			-
Net CLO VI contractual interest		-			-
Bond Payable interest expense		(1,732	)		(1,923	)
CLO subordinated notes interest income		2,491			-
Less: Non-controlling interest and other adjustments		(17	)		(1,108	)
Other interest income		74			324
Total segment net interest income	$	816		$	2,927
Non-controlling interest and other adjustments		17			1,108
Total net interest income	$	833		$	4,035

Net interest income decreased $3.2 million from $4.0 million for the quarter ended June 30, 2018 to $0.8 million for the quarter ended June 30, 2019. The decrease in interest income was driven primarily by a $5.6 million decrease in interest earned on the CLOs as they were deconsolidated during the three months ended March 31, 2019, partially offset by a $2.5 million in interest income earned on the retained interest in CLO subordinated notes. As a percentage of total net revenues after provision for loan losses, net interest income was 9.1% for the quarter ended June 30, 2018 and 3.0% for the quarter ended June 30, 2019.

Total segment net interest income decreased from $2.9 million for the quarter ended June 30, 2018 to $0.8 million for the quarter ended June 30, 2019. Net interest income is earned in our Investment Income segment and reflects our portion of the net CLO contractual interest before deconsolidation in the first quarter of 2019, net of bond interest expense. Total segment net interest income after deconsolidation reflects the effective yield of the Company's ownership of subordinated notes in CLO III, CLO IV, and CLO V, net of bond interest expense. Total segment net interest income is reconciled to the GAAP measure, total net interest income, in the table above. As a percentage of total segment net revenues, net interest income was 6.7% for the quarter ended June 30, 2018 and 2.9% for the quarter ended June 30, 2019.

The following table sets forth contractual interest income and expense related to CLO loans and ABS issued (through the respective deconsolidation date of each CLO) and their weighted average contractual interest rates:

(In thousands)	Three Months Ended June 30, 2018
	Interest Income (Expense)			Average CLO loan contractual interest income (CLO ABS contractual interest expense) Balance			Weighted Average Contractual Interest Rate			Weighted Average LIBOR			Spread to Weighted Average LIBOR
CLO III loan contractual interest income	$	5,387		$	350,811			5.75	%		2.24	%		3.51	%
CLO III ABS contractual interest expense		(3,229	)		(332,100	)		3.70	%		2.34	%		1.35	%
CLO IV loan contractual interest income		6,674			440,310			5.75	%		2.24	%		3.51	%
CLO IV ABS contractual interest expense		(4,796	)		(423,408	)		4.41	%		2.34	%		2.06	%
CLO V loan contractual interest income		3,287			220,423			5.60	%		2.26	%		3.34	%
CLO V warehouse contractual interest expense		(1,689	)		(309,145	)		3.46	%		2.09	%		1.38	%
Net CLO contractual interest	$	5,634		$	N/A			N/A			N/A			N/A

50

Provision for Loan Losses

(in thousands)	Three Months Ended June 30,
	2019		2018
CLO related provision	$	-	$	(1,280	)
Non-CLO related provision		-		-
Provision for loan losses		-		(1,280	)
Less: General reserves related to CLOs and CLO warehouse		-		1,243
Segment provision for loan losses	$	-	$	(37	)

Provision for loan losses decreased $1.3 million, from a provision of $1.3 million for the quarter ended June 30, 2018 to a provision of zero for the same period in 2019. The decrease was due to deconsolidation of CLO III, CLO IV, CLO V, and CLO VI warehouse during the first quarter of 2019. As a percent of net revenues after provision for loan losses, the provision for loan losses was 2.9% of the quarter ended June 30, 2018 and zero for the quarter ended June 30, 2019.

Total segment provision for loan losses decreased from a provision of $37 thousand for the quarter ended June 30, 2018 to a provision of zero for the quarter ended June 30, 2019. Total segment provision for loan losses is a non-GAAP financial measure that aggregates our segment reported provision for loan losses across each segment. Our total segment provision for loan losses in 2019 and 2018 was solely recognized in our Investment Income segment. As a percent of total segment adjusted net revenues, segment provision for loan losses decreased from 0.1% for the quarter ended June 30, 2018 and zero for the quarter ended June 30, 2019.

Expenses

Non-Interest Expenses

Compensation and Benefits

Compensation and benefits, which includes employee payroll, taxes and benefits, performance-based cash bonus and commissions, as well as equity-based compensation to our employees and managing directors, decreased $9.2 million, or 31.5%, from $29.1 million for the quarter ended June 30, 2018 to $19.9 million for the quarter ended June 30, 2019.

Employee payroll, taxes and benefits, and consultant fees decreased from $10.5 million for the quarter ended June 30, 2018 to $10.1 million for the quarter ended June 30, 2019. Performance-based bonus and commission decreased $9.1 million from $18.3 million for the quarter ended June 30, 2018 to $9.2 million for the quarter ended June 30, 2019.

Equity-based compensation increased $0.2 million from $0.4 million for the quarter ended June 30, 2018 to $0.6 million for the quarter ended June 30, 2019.

Compensation and benefits as a percentage of revenues increased from 65.8% of total net revenues after provision for loan losses for the quarter ended June, 2018 to 71.1% for the quarter ended June 30, 2019. The decrease in the compensation and benefits is primarily due to the decrease in total net revenues between periods. As employee bonuses are performance based and make up a large percentage of total compensation decreased total net revenues has decreased compensation for the period.

Our segment reported compensation and benefits recognizes 100% of the cost of deferred compensation, including non-cash share-based compensation expense, in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, in order to match compensation expense with the actual period upon which the compensation was based. The segment reported compensation and benefits decreased $9.8 million from $28.8 million for the quarter ended June 30, 2018 to $19.0 million for the quarter ended June 30, 2019. As a percent of total segment net revenues, compensation and benefits were 65.6% for the quarter ended June 30, 2018 and 68.2% for the quarter ended June 30, 2019. 

51

Administration

Administration expense was $2.7 million for both of the quarters ended June 30, 2019 and 2018. As a percentage of total net revenues after provision for loan losses, administration expense were 9.8% and 6.1% for the quarters ended June 30, 2019 and 2018, respectively.

Brokerage, Clearing and Exchange Fees

Brokerage, clearing and exchange fees were $0.7 million and $0.8 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, our brokerage, clearing and exchange fees were 2.6% and 1.8% for the quarters ended June 30, 2019 and 2018, respectively.

Travel and Business Development

Travel and business development expenses were $1.3 million and $1.2 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, travel and business development expense was 4.8% and 2.7% and for the quarters ended June 30, 2019 and 2018, respectively.

Managed deal expenses

Managed deal expenses were $1.3 million and $2.3 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, managed deal expenses were 4.8% and 5.3% for the quarters ended June 30, 2019 and 2018, respectively.

Communications and Technology

Communications and technology expenses were $1.1 million and $1.0 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, communications and technology expense were 4.0% and 2.4% for the quarters ended June 30, 2019 and 2018, respectively.

Occupancy

Occupancy expenses were $1.4 million and $1.1 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, occupancy expense were 5.0% and 2.6% for the quarters ended June 30, 2019 and 2018, respectively.

Professional Fees

Professional fees were $0.8 million and $1.1 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, professional fees were 2.9% and 2.6% for the quarters ended June 30, 2019 and 2018, respectively.

Depreciation

Depreciation expenses were $0.3 million for both of the quarters ended June 30, 2019 and 2018. As a percentage of total net revenues after provision for loan losses, depreciation was 1.1% and 0.6% for the quarters ended June 30, 2019 and 2018, respectively.

Other Expenses

Other expenses were zero and $0.8 million for the quarters ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, other expenses were zero and 1.8% for the quarters ended June 30, 2019 and 2018, respectively.

Net Income Attributable to Non-controlling Interest

Net income attributable to non-controlling interest decreased from net income of $0.8 million for the quarter ended June 30, 2018 to net loss of $0.1 million for the quarter ended June 30, 2019. The decrease in the income attributable to non-controlling interest holders is a result of the deconsolidation of CLO III during the three month ended March 31, 2019. Non-controlling interest for the quarter ended June 30, 2018 includes the interest of third parties in CLO III, HCAP Advisors, and HCS SI. Non-controlling interest for the quarter ended June 30, 2019 includes the interest of third parties in HCAP Advisors and HCS SI. 

Provision for Income Taxes

The income tax recorded was a benefit of $0.5 million and an expense of $4.9 million for the quarters ended June 30, 2019 and 2018, respectively. The Company's tax expense decreased for the quarter ended June 30, 2019 from June 30, 2018 due to decreased net income from period to period. For the quarter ended June 30, 2019, an effective tax rate of 26% is assumed for our taxable parent company, based on our best estimation of the subsidiary’s average rate of taxation over the long term. For the quarter ended June 30, 2018, an effective tax rate of 26% is assumed at the taxable direct subsidiary and a tax rate of 0% is assumed at the other direct subsidiary, which was a "a pass through entity" for tax purposes. Segment income tax was a $0.2 million benefit and $0.5million expense for the quarters ended June 30, 2019 and 2018, respectively.

U.S. federal corporate income tax reform included a broad range of proposals affecting businesses, including corporate tax rates, business deductions and international tax provisions. The reduction in the federal corporate tax rate required a revaluation of our deferred tax assets at the  corporate entity level. International tax provisions, including a shift to a territorial system, did not impact JMP Group LLC’s investment in foreign corporations, as the Company has historically included accumulated earnings and profits from controlled foreign corporations.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Overview

Total net revenues after provision for loan losses was $71.5 million for the six months ended June 30, 2018 and $55.2 million for the same period in 2019.

Non-interest revenues decreased $18.9 million, or 27.1%, from $69.8 million for the six months ended June 30, 2018 to $50.9 million in the same period in 2019. This decrease was driven by a $19.6 million decrease in investment banking revenues and a $7.7 million decrease in asset management revenues, partially offset by a $8.6 million increase in principal transaction revenue.

Net interest income decreased $2.6 million, or 38.2%, from $7.0 million for the six months ended June 30, 2018 to $4.4 million for the six months ended June 30, 2019. The decrease in net interest income was due to the deconsolidation of the CLOs during the three month period ended March 31, 2019.

Loss on repurchase, reissuance, or early retirement of debt decreased $2.7 million from $2.7 million for the six months ended June 30, 2018 to zero for the six months ended June 30, 2019.

Provision for loan losses decreased $2.7 million from a provision of $2.7 million for the six months ended June 30, 2018 to zero for the six months ended June 30, 2019. The decrease in provision of loan losses was due to the deconsolidation of the CLOs during the three months ended March 31, 2019. 

Total non-interest expenses decreased $19.2 million, or 25.6%, from $75.1 million for the six months ended June 30, 2018 to $55.9 million for the six months ended June 30, 2019, primarily due to a $16.2 million decrease in compensation and benefits, a $2.0 million decrease in managed deal expenses, and a $0.8 million decrease in professional fees. 

Net income attributable to non-controlling interest increased $0.7 million, or 98.1%, from a net loss of $0.7 million for the six months ended June 30, 2018 to net loss of $13 thousand for the six months ended June 30, 2019.

Net income attributable to JMP Group LLC increased $6.3 million from a net loss of $2.3 million for the six months ended June 30, 2018 to net income of $4.0 million for the six months ended June 30, 2019. The increase in net income attributable to JMP Group LLC was due to the Company's election to be treated as a C-corporation for tax purposes which resulted in the Company recognizing initial temporary differences between the book and tax basis of assets and liabilities that were previously held by pass through entities.

Revenues

Investment Banking

Investment banking revenues, earned in our Broker-Dealer segment, decreased $19.6 million, or 39.8%, from $49.2 million for the six months ended June 30, 2018 to $29.6 million for the same period in 2019. As a percentage of total net revenues after provision for loan losses, investment banking revenues decreased from 68.9% for the six months ended June 30, 2018 to 53.6% for the six months ended June 30, 2019. On an operating basis, investment banking revenues were 54.2% and 65.1% for the six months ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

(Dollars in thousands)	Six Months Ended June 30,								Change from 2019 to 2018
	2019				2018
	Count		Revenues		Count		Revenues		Count						%
Equity and debt origination		42	$	19,117		52	$	35,911		(10	)	$	(16,794	)		-46.8	%
Strategic advisory and private placements		9		10,498		13		13,313		(4	)		(2,815	)		-21.1	%
Total		51	$	29,615		65	$	49,224		(14	)	$	(19,609	)		-39.8	%

The decrease in revenues was driven by a 21.5% decrease in the number of transactions executed and a 23.3% decrease in the average size of the fee paid per transaction. The number of transactions in which we acted as a bookrunning manager was ten and eight for the six months ended June 30, 2019 and 2018, respectively.

Brokerage Revenues

Brokerage revenues earned in our Broker-Dealer segment decreased from $10.1 million for the six months ended June 30, 2018 to $9.2 million for the six months ended June 30, 2019. Brokerage revenues increased as a percentage of total net revenues after provision for loan losses, from 14.1% for the six months ended June 30, 2018 to 16.6% for the six months ended June 30, 2019. On an operating basis, brokerage revenues were 16.8% and 13.4% for the six months ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

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Asset Management Fees

(In thousands)	Six Months Ended June 30,
	2019			2018
Base management fees:
Fees reported as asset management fees	$	3,205		$	6,325
Less: Non-controlling interest in HCAP Advisors		(500	)		(360	)
Total base management fees		2,705			5,965
Incentive fees:
Fees reported as asset management fees	$	852		$	5,478
Less: Non-controlling interest in HCAP Advisors		(2	)		-
Total incentive fees		850			5,478
Other fee income:
Fundraising fees and other	$	758		$	360
Less: Non-controlling interest in HCAP Advisors		(83	)		(79	)
Total other fee income (loss)		675			281
Asset management related fees:
Fees reported as asset management fees	$	4,057		$	11,803
Fees reported as other income		758			360
Less: Non-controlling interest in HCAP Advisors		(585	)		(439	)
Total segment asset management related fee revenues	$	4,230		$	11,724

Fees reported as asset management fees were $4.1 million and $11.8 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, asset management revenues decreased from 16.5% for the six months ended June 30, 2018 to 7.3% for the six months ended June 30, 2019. Asset management fees decreased from the six months ended June 30, 2018 due to (i) the sale of the HSCP entities on December 31, 2018 which resulted in a decrease of approximately $360.0 million in assets under management and (ii) due to decreased incentive fees recorded in the six months ended June 30, 2019 compared to the same period in 2018. In the six months ended June 30, 2018, the Company recognized $5.3 million in incentive fees related to a hedge fund managed by the Company that liquidated during the period. As a result, the Company recognized incentive fees that were previously deferred due to the presence of claw backs. 

Total segment asset management-related fees include base management fees and incentive fees from our funds, HCC and CLOs under management (through March 19, 2019), as well as other income from fee-sharing arrangements with, and fees earned to raise capital for, third-party or equity-method investment partnerships or funds. Total segment asset management-related fee revenues are reconciled to the GAAP measure, total asset management fee revenues, in the table above. We believe that presenting operating asset management-related fees is useful to investors as a means of assessing the performance of our combined asset management activities, including fundraising and other services for third parties. We believe that segment asset management-related fee revenues provides useful information by indicating the relative contributions of base management fees and performance-related incentive fees, thus facilitating a comparison of those fees in a given period to those in prior and future periods. We also believe that asset management-related fee revenue is a more meaningful measure than standalone asset management fees as reported, because asset management-related fee revenues represent the combined impact of the various asset management activities on the Company’s total net revenues.

Total segment asset management related fee revenue decreased $7.5 million, from $11.7 million for the six months ended June 30, 2018 to $4.2 million for the six months ended June 30, 2019. Total base management fees were $2.7 million and $6.0 million for the six months ended June 30, 2019 and 2018, respectively. Total incentive fees decreased from $5.5 million for the six months ended June 30, 2018 to $0.9 million for the same period in 2019. On an operating basis, asset management related fee revenues were 7.7% and 15.5% for the six months ended June 30, 2019 and 2018, respectively, as a percentage of adjusted net revenues.

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Principal Transactions

Principal transaction revenues increased $8.6 million, from a loss of $1.9 million for the six months ended June 30, 2018 to a gain of $6.7 million for the same period in 2019. As a percentage of total net revenues after provision for loan losses, principal transaction revenues were 2.7% for the six months ended June 30, 2018 and 12.1% for the six months ended June 30, 2019.

Total segment principal transaction revenues increased $6.8 million, from $0.1 million for the six months ended June 30, 2018 to a $6.9 million for the same period in 2019. Total segment principal transaction revenues are a non-GAAP financial measure that aggregates our segment reported principal transaction revenues across each segment. The principal transaction revenues for both 2019 and 2018 were based in our Investment Income segment. Total segment principal transaction revenues are reconciled to the GAAP measure, total principal transaction revenues, in the table below. See the Operating Net Income section above for additional information on the adjustments made to arrive at the non-GAAP measure and why management believes that this non-GAAP number is useful and important to the users of these financial statements.

(In thousands)	Six Months Ended June 30,
	2019			2018
Equity and other securities excluding non-controlling interest	$	1,369		$	(830	)
Warrants and other investments		5,360			730
Investment partnerships		150			221
Total segment principal transaction revenues		6,879			121
Operating adjustment addbacks		(168	)		(2,057	)
Total principal transaction revenues	$	6,711		$	(1,936	)

The increase in principal transaction revenue is primarily attributed to a $3.4 million gain on deconsolidation of JMPCA, an increase of $2.8 million in gains on investments in real estate, a $1.6 million increase in gains on principal investments, and a $1.0 million increase in gains from investments in private capital. On an operating basis, as a percentage of adjusted net revenues, principal transaction revenues increased from 0.2% for the six months ended June 30, 2018 to 12.6% for the quarter ended June 30, 2019.

Gain and Loss on Sale and Payoff of Loans

Loss on sale and payoff of loans decreased from a loss of $0.3 million for the six months ended June 30, 2018 to $38 thousand for the six months ended June 30, 2019. Gain and loss on sale and payoff of loans was incurred in our Investment Income segment. On an operating basis as a percentage of adjusted net revenues, gain and loss on sale and payoff of loans decreased from 0.5% for the six months ended June 30, 2018, to 0.1% for the six months ended June 30, 2019.

Net Dividend Income

Net dividend income was $0.6 million for both of the six months ended June 30, 2019 and 2018. Net dividend income primarily related to dividends from our HCC investment.

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Net Interest Income/Expense

(In thousands)	Six Months Ended June 30,
	2019			2018
CLO III loan contractual interest income	$	1,074		$	10,332
CLO III ABS issued contractual interest expense		(660	)		(6,337	)
Net CLO III contractual interest		414			3,995
CLO IV loan contractual interest income	$	6,240		$	12,752
CLO IV ABS issued contractual interest expense		(4,492	)		(8,936	)
Net CLO IV contractual interest		1,748			3,816
CLO V loan contractual interest income	$	5,400		$	4,694
CLO V warehouse/ABS issued contractual interest expense		(3,836	)		(2,332	)
Net CLO V contractual interest		1,564			2,362
CLO VI loan contractual interest income	$	551		$	-
CLO VI warehouse credit facility contractual interest expense		(245	)		-
Net CLO VI contractual interest		306			-
Bond Payable interest expense		(3,461	)		(3,838	)
CLO subordinated notes interest income		3,151			-
Less: Non-controlling interest and other adjustments		(212	)		(1,989	)
Other interest income		629			708
Total segment net interest income	$	4,139		$	5,054
Non-controlling interest and other adjustments		212			1,989
Total net interest income	$	4,351		$	7,043

Net interest income decreased $2.6 million from $7.0 million for the six months ended June 30, 2018 to $4.4 million for the six months ended June 30, 2019. The decrease in interest income was driven primarily by a $6.1 million decrease in interest earned on the CLOs as they were deconsolidated during the three months ended March 31, 2019, partially offset by a $3.2 million in interest income earned on the retained interest in CLO subordinated notes. As a percentage of total net revenues after provision for loan losses, net interest income was 9.9% for the six months ended June 30, 2018 and 7.9% for the six months ended June 30, 2019.

Total segment net interest income decreased from $5.1 million for the six months ended June 30, 2018 to $4.1 million for the six months ended June 30, 2019. Net interest income is earned in our Investment Income segment and reflects our portion of the net CLO contractual interest before deconsolidation and interest earned on the Company's retained interest in the CLOs after deconsolidation, net of bond interest expense. Total segment net interest income after deconsolidation reflects the effective yield of the Company's ownership of subordinated notes in CLO III, CLO IV, and CLO V, net of bond interest expense. Total segment net interest income is reconciled to the GAAP measure, total net interest income, in the table above. As a percentage of total segment net revenues, net interest income was 6.7% for the six months ended June, 2018 and 7.6% for the quarter ended June 30, 2019.

The following table sets forth contractual interest income and expense related to CLO loans and ABS issued (through the respective deconsolidation date of each CLO) and their weighted average contractual interest rates:

(In thousands)	Six Months Ended June 30, 2019
	Interest Income (Expense)			Average CLO loan contractual interest income (CLO ABS contractual interest expense) Balance			Weighted Average Contractual Interest Rate			Weighted Average LIBOR			Spread to Weighted Average LIBOR
CLO III loan contractual interest income (1)	$	1,074		$	351,245			6.21	%		2.72	%		3.49	%
CLO III ABS contractual interest expense (1)		(660	)		(332,100	)		3.96	%		2.61	%		1.35	%
CLO IV loan contractual interest income (2)		6,240			439,283			6.27	%		2.72	%		3.55	%
CLO IV ABS contractual interest expense (2)		(4,492	)		(421,173	)		4.76	%		2.72	%		2.05	%
CLO V loan contractual interest income (2)		5,400			394,925			6.23	%		2.72	%		3.52	%
CLO V warehouse/ABS contractual interest expense (2)		(3,836	)		(376,657	)		4.59	%		2.71	%		1.88	%
CLO VI loan contractual interest income (2)		551			38,006			6.33	%		2.77	%		3.56	%
CLO VI warehouse contractual interest expense (2)		(245	)		(28,981	)		4.02	%		2.77	%		1.25	%
Net CLO contractual interest	$	4,032			N/A			N/A			N/A			N/A

(1)	Interest income and interest expense were earned and accrued through January 17, 2019.
(2)	Interest income and interest expense were earned and accrued through March 19, 2019.

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(In thousands)	Six Months Ended June 30, 2018
	Interest Income (Expense)			Average CLO loan contractual interest income (CLO ABS contractual interest expense) Balance			Weighted Average Contractual Interest Rate			Weighted Average LIBOR			Spread to Weighted Average LIBOR
CLO III loan contractual interest income	$	10,332		$	351,303			5.60	%		1.95	%		3.65	%
CLO III ABS contractual interest expense		(6,337	)		(332,100	)		3.49	%		2.01	%		1.48	%
CLO IV loan contractual interest income		12,752			436,213			5.60	%		1.96	%		3.64	%
CLO IV ABS contractual interest expense		(8,936	)		(423,450	)		4.08	%		2.01	%		2.07	%
CLO V loan contractual interest income		4,694			162,122			5.48	%		1.98	%		3.49	%
CLO V warehouse contractual interest expense		(2,332	)		(159,668	)		3.37	%		2.00	%		1.38	%
Net CLO contractual interest	$	10,173		$	N/A			N/A			N/A			N/A

Provision for Loan Losses

(in thousands)	Six Months Ended June 30,
	2019		2018
CLO related provision	$	-	$	(2,555	)
Non-CLO related provision		-		(190	)
Provision for loan losses		-		(2,745	)
Less: General reserves related to CLOs and CLO warehouse		-		1,815
Segment provision for loan losses	$	-	$	(930	)

Provision for loan losses decreased $2.7 million, from a provision of $2.7 million for the six months ended June 30, 2018 to a provision of zero for the same period in 2019. The decrease was due to deconsolidation of CLO III, CLO IV, CLO V, and CLO VI warehouse during the first quarter of 2019. As a percent of net revenues after provision for loan losses, the provision for loan losses was 3.8% of the six months ended June 30, 2018 and zero for the six months ended June 30, 2019.

Total segment provision for loan losses decreased from a provision of $0.9 million for the six months ended June 30, 2018 to a provision of zero for the six months ended June 30, 2019. Total segment provision for loan losses is a non-GAAP financial measure that aggregates our segment reported provision for loan losses across each segment. Our total segment provision for loan losses in 2019 and 2018 was solely recognized in our Investment Income segment. As a percent of total segment adjusted net revenues, segment provision for loan losses decreased from 1.2% for the six months ended June 30, 2018 and zero for the six months ended June 30, 2019.

Expenses

Non-Interest Expenses

Compensation and Benefits

Compensation and benefits, which includes employee payroll, taxes and benefits, performance-based cash bonus and commissions, as well as equity-based compensation to our employees and managing directors, decreased $16.2 million, or 30.4%, from $53.4 million for the six months ended June 30, 2018 to $37.2 million for the six months ended June 30, 2019.

Employee payroll, taxes and benefits, and consultant fees decreased from $22.6 million for the six months ended June 30, 2018 to $21.4 million for the six months ended June 30, 2019. Performance-based bonus and commission decreased $14.3 million from $28.3 million for the six months ended June 30, 2018 to $14.0 million for the six months ended June 30, 2019.

Equity-based compensation increased $0.4 million from $0.7 million for the six months ended June 30, 2018 to $1.1 million for the six months ended June 30, 2019.

Compensation and benefits as a percentage of revenues decreased from 74.7% of total net revenues after provision for loan losses for the six months ended June, 2018 to 67.3% for the six months ended June 30, 2019. The decrease in the compensation and benefits as a percentage of revenues is primarily due to a change in the composition of revenues between periods. In the six months ended June 30, 2019, revenues were heavily comprised of items for which the employee compensation ratio is lower compared to the six months ended June 30, 2018. Additionally, during the six months ended June 30, 2018, the Company recognized $5.5 million of incentive fee revenues from a hedge fund, which resulted in the recognition of $4.9 million of performance-based bonus during that period. During the six months ended June 30, 2019, the Company recognized $0.9 million incentive fee revenue from hedge and capital debt funds and as recognized $0.3 million of performance-based bonuses related to such incentive fee revenues.

Our segment reported compensation and benefits recognizes 100% of the cost of deferred compensation, including non-cash share-based compensation expense, in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, in order to match compensation expense with the actual period upon which the compensation was based. The segment reported compensation and benefits decreased $17.5 million from $52.5 million for the six months ended June 30, 2018 to $35.0 million for the six months ended June 30, 2019. As a percent of total segment net revenues, compensation and benefits were 69.5% for the six months ended June 30, 2018 and 64.0% for the six months ended June 30, 2019. The decrease in the compensation and benefits as a percentage of revenues is primarily due to a change in the composition of revenues between periods. In the six months ended June 30, 2019, revenues were heavily comprised of items for which the employee compensation ratio is lower compared to the six months ended June 30, 2018.

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Administration

Administration expense was $4.7 million and $4.9 million for the six months ended June 30, 2019 and 2018. As a percentage of total net revenues after provision for loan losses, administration expense were 8.5% and 6.9% for the six months ended June 30, 2019 and 2018, respectively.

Brokerage, Clearing and Exchange Fees

Brokerage, clearing and exchange fees were $1.4 million and $1.6 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, our brokerage, clearing and exchange fees were 2.6% and 2.2% for the six months ended June 30, 2019 and 2018, respectively.

Travel and Business Development

Travel and business development expenses were $2.4 million and $2.2 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, travel and business development expense was 4.3% and 3.0% and for the six months ended June 30, 2019 and 2018, respectively.

Managed deal expenses

Managed deal expenses were $1.9 million and $3.9 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, managed deal expenses were 3.4% and 5.5% for the six months ended June 30, 2019 and 2018, respectively.

Communications and Technology

Communications and technology expenses were $2.2 million and $2.1 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, communications and technology expense were 3.9% and 3.0% for the six months ended June 30, 2019 and 2018, respectively.

Occupancy

Occupancy expenses were $2.8 million and $2.3 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, occupancy expense were 5.1% and 3.2% for the six months ended June 30, 2019 and 2018, respectively.

Professional Fees

Professional fees were $2.3 million and $3.0 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, professional fees were 4.1% and 4.3% for the six months ended June 30, 2019 and 2018, respectively.

Depreciation

Depreciation expenses were $0.6 million for both of the six months ended June 30, 2019 and 2018. As a percentage of total net revenues after provision for loan losses, depreciation was 1.1% and 0.8% for the six months ended June 30, 2019 and 2018, respectively.

Other Expenses

Other expenses were $0.5 million and $1.2 million for the six months ended June 30, 2019 and 2018, respectively. As a percentage of total net revenues after provision for loan losses, other expenses were 0.9% and 1.6% for the six months ended June 30, 2019 and 2018, respectively.

Net Income Attributable to Non-controlling Interest

Net income attributable to non-controlling interest increased from net loss of $0.7 million for the six months ended June 30, 2018 to zero for the six months ended June 30, 2019. The decrease in the net loss attributable to non-controlling interest holders is a result of the deconsolidation of CLO III during the three month ended March 31, 2019. Non-controlling interest for both of the six months ended June 30, 2019 and 2018 includes the interest of third parties in CLO III, HCAP Advisors, and HCS SI.

Provision for Income Taxes

The income tax benefit recorded was $4.6 million and $0.7 million for the six months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019, an effective tax rate of 26% is assumed for our taxable parent company, based on our best estimation of the subsidiary’s average rate of taxation over the long term. For the  six months ended June 30, 2018, an effective tax rate of 26% is assumed at the taxable direct subsidiary and a tax rate of 0% is assumed at the other direct subsidiary, which was a "a pass through entity" for tax purposes. Segment income tax expense was $0.3 million and $0.5 million for the six months ended June 30, 2019 and 2018, respectively.

The Company recorded a tax benefit for the period ended June 30, 2019, despite larger than the Company's net loss before income tax expense due to a change in tax status effective January 1, 2019. During the six months ended June 30, 2019, the Company filed an election to be treated as a C corporation for tax purposes, rather than a partnership, which resulted in the Company recognizing initial temporary differences between the book and tax basis of assets and liabilities that were previously held under pass through entities.

U.S. federal corporate income tax reform included a broad range of proposals affecting businesses, including corporate tax rates, business deductions and international tax provisions. The reduction in the federal corporate tax rate required a revaluation of our deferred tax assets at the  corporate entity level. International tax provisions, including a shift to a territorial system, did not impact JMP Group LLC’s investment in foreign corporations, as the Company has historically included accumulated earnings and profits from controlled foreign corporations.

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Financial Condition, Liquidity and Capital Resources

In the section that follows, we discuss the significant changes in the components of our balance sheet, cash flows and capital resources and liquidity for the six months ended June 30, 2019 to demonstrate where our capital is invested and the financial condition of the Company.

Overview

As of June 30, 2019, we had net liquid assets of $122.2 million consisting of cash and cash equivalents, proceeds from short sales on deposit, receivable from clearing broker, marketable securities owned, and general partner investments in hedge funds managed by HCS, net of marketable securities sold but not yet purchased, accrued compensation, deferred compensation paid in January 2019, and non-controlling interest. We have satisfied our capital and liquidity requirements primarily through the issuance of the Senior Notes, draws on a line of credit, and internally generated cash from operations. Most of our financial instruments, other than loans held for investment and certain marketable securities, are recorded at fair value or amounts that approximate fair value.

Liquidity Considerations

As of June 30, 2019, our indebtedness consists of our Senior Notes, line of credit, and a note payable. We have no outstanding balances on our revolving line of credit with City National Bank (“CNB”) held at JMP Securities.

In January 2013, we raised approximately $46.0 million from the issuance of 8.00% Senior Notes (“2013 Senior Notes”). In January 2014, we raised approximately $48.3 million from the issuance of 7.25% Senior Notes (“2014 Senior Notes”), which were fully redeemed on December 28, 2017 and for which the Company recognized a $0.8 million loss on the early retirement of the 2014 Senior Notes. In November 2017, we raised approximately $50.0 million from the issuance of 7.25% Senior Notes (“2017 Senior Notes” and, together with the 2013 Senior Notes, the “Senior Notes”). The 2013 Senior Notes will mature on January 15, 2023 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after January 15, 2016, at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The 2013 Senior Notes bear interest at a rate of 8.00% per year, payable quarterly on January 15, April 15, July 15 and October 15 of each year. The 2017 Senior Notes will mature on November 15, 2027 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after November 28, 2020, at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The 2017 Senior Notes bear interest at a rate of 7.25% per year, payable quarterly on February 15, May 15, August 15 and November 15 of each year. The Company redeemed $10.0 million of the issued and outstanding 2013 Senior Notes on July 31, 2018. The Company recorded a loss of $0.2 million related to this partial retirement of the 2013 Senior Notes. On June 18, 2019 the Company announced its intent to redeem $11.0 million of issued and outstanding 2013 Senior Notes on July 18, 2019 (the "Redemption Date"). The notes were redeemed at 100% of their principal amount, $25, plus the accrued and unpaid interest thereon up to, but excluding, the Redemption Date.

In connection with the Reorganization Transaction, pursuant to which JMP Group Inc. became a wholly-owned subsidiary of JMP Group LLC, we entered into a Third Supplemental Indenture, dated as of October 15, 2014 (the “Third Supplemental Indenture”), among JMP Group Inc., as issuer, and JMP Group LLC and JMP Investment Holdings LLC, as guarantors (the “Guarantors”), and U.S. Bank National Association, as trustee. The Third Supplemental Indenture became effective on January 1, 2015. Under the Third Supplemental Indenture, the Guarantors jointly and severally provided a full and unconditional guarantee of the due and punctual payment of the principal and interest on the Senior Notes and the due and punctual payment or performance of all other obligations of JMP Group Inc. under the Indenture, dated as of January 24, 2013, between JMP Group Inc. and the Trustee, as supplemented by a First Supplemental Indenture, dated as of January 25, 2013, a Second Supplemental Indenture, dated as of January 29, 2014, a Third Supplemental Indenture, dated as of October 15, 2014, and a Fourth Supplemental Indenture, dated as of November 28, 2017.

JMP Holding LLC (the “Borrower”), a wholly owned subsidiary of the Company, entered into a Second Amended and Restated Credit Agreement dated April 30, 2014 among the Borrower, the lenders from time to time party thereto (the “Lenders”) and CNB, as administrative agent for the Lenders (as amended, the “Credit Agreement”).  On July 1, 2019, the Borrower entered into a Fifth Amendment to the Credit Agreement (the “Fifth Amendment”) which made various updates, clarifications and conforming changes to the Credit Agreement relating to changes in the business and corporate structure of the Company since the Credit Agreement was originally entered into by the Borrower as well as the changes described below.

The Credit Agreement provides a $25.0 million revolving line of credit (the “Revolver”) through December 31, 2020. On such date, if the revolving period has not been previously extended, any outstanding amounts under the Revolver would convert to a term loan (the “Converted Term Loan”). The Converted Term Loan must be repaid in 12 quarterly installments commencing on January 1, 2021, with each of the first six installments being equal to 3.75% of the principal amount of the Converted Term Loan and each of the next six installments being equal to 5.0% of the principal amount of the Converted Term Loan. A final payment of all remaining principal and interest due under the Converted Term Loan must be made at the earlier of: (a) December 31, 2023; or (b) if certain liquidity requirements are not satisfied by the Company, the date that is last day of the fiscal quarter ending most recently (but no less than 60 days) prior to the earliest maturity date of any senior unsecured notes issued by JMP Group Inc. then outstanding.

The Credit Agreement provides that the Revolver may be used, on a revolving basis, to fund specified permitted investments in collateralized loan obligation vehicles. In addition, up to $5.0 million of the Revolver may be used, on a revolving basis, to fund other types of permitted investments and acquisitions and for working capital.

The Fifth Amendment modified the financial covenants in the Credit Agreement to provide for (a) a minimum fixed charge coverage ratio of at least 1.25 to 1.00 for each four-fiscal-quarter period, (b) a maximum senior leverage ratio of 2.25 to 1.00 as of the last day of each fiscal quarter, (c) a minimum liquidity to debt service ratio of at least 1.25 to 1.00 as of the last day of each fiscal quarter, and (d) a minimum net asset value to total funded debt ratio at all times of at least 1.35 to 1.00.

As of June 30, 2019, we were in compliance with all financial covenants in effect at that time. The Credit Agreement also includes an event of default for a “change of control” that tests, in part, the composition of our ownership and an event of default if three or more of the members of the Company’s executive committee fail to be involved actively on an ongoing basis in the management of the Company or any of its subsidiaries.

58

Separately, under a Revolving Note and Cash Subordination Agreement (the "Revolving Note"), JMP Securities holds a $20.0 million revolving line of credit with CNB to be used for regulatory capital purposes during its securities underwriting activities. The unused portion of the line bears interest at the rate of 0.25% per annum, paid monthly. On June 6, 2019, JMP Securities entered into an amendment to its Revolving Note. Pursuant to this amendment, the $20.0 million Revolving Note was renewed for one year. On June 8, 2020, any existing outstanding amount will convert to a term loan maturing the following year. The remaining terms of the Revolving Note are consistent with those of the existing agreement. There was no borrowing on this Revolving Note as of June 30, 2019 and December 31, 2018.

The Revolving Note contains financial and other covenants, including, but not limited to, limitations on debt, liens and investments, as well as the maintenance of certain financial covenants. A violation of any one of these covenants could result in a default under the Revolving Note, which would permit CNB to terminate the Company’s note and require the immediate repayment of any outstanding principal and interest. At both June 30, 2019 and December 31, 2018, the Company was in compliance with the loan covenants.

On May 13, 2019, the Company launched a self-tendered offer (the “Tender Offer”) to repurchase for cash up to 3,000,000 of shares representing limited liability company interests of the Company. On June 13, 2019 the Company repurchased 1,816,732 shares under the Tender Offer at a price $3.95 per share for a total purchase price of $7.2 million, excluding fees and expenses related to the Tender Offer.

The timing of bonus compensation payments to our employees may significantly affect our cash position and liquidity from period to period. While our employees and managing directors are generally paid semi-monthly during the year, bonus compensation, which makes up a larger portion of total compensation, is generally paid once a year during the first two months of the following year. In the first two months of 2019, we paid out $37.1 million of cash bonuses for 2019, excluding employer payroll tax expense.

The Company currently intends to continue to declare quarterly cash distributions on all outstanding shares. For the three months ended June 30, 2019, the Company declared cash distributions on all outstanding shares on April 29, 2019. The distribution of $0.04 per share for the first quarter of 2019 was paid on May 31, 2019, to shareholders of record as of May 17, 2019. 

During the three months ended June 30, 2019, the Company repurchased 1,978,303 of the Company’s shares at an average price of $3.95 per share for an aggregate purchase price of $7.8 million, including shares repurchased under the Tender Offer, excluding fees and expenses related to the Tender Offer.

We had total restricted cash of $1.2 million comprised primarily of restricted cash at JMP Group Inc. related to the Company's letters of credit on leasing arrangements.

Because of the nature of our investment banking and sales and trading businesses, liquidity is important to us. Accordingly, we regularly monitor our liquidity position, including our cash and net capital positions. We believe that our available liquidity and current level of equity capital, combined with the funds anticipated to be provided by our operating activities, will be adequate to meet our liquidity and regulatory capital requirements for at least the next twelve months. If circumstances required it, we could improve our liquidity position by discontinuing repurchases of the Company’s common shares, halting cash distributions on our common shares and reducing cash bonus compensation paid.

JMP Securities, our wholly-owned subsidiary and a registered securities broker-dealer, is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. JMP Securities had net capital of $23.0 million and $29.8 million, which were $21.9 million and $28.7 million in excess of the required net capital of $1.1 million and $1.1 million, at June 30, 2019 and December 31, 2018, respectively. JMP Securities’ ratio of aggregate indebtedness to net capital was 0.72 to 1 and 0.57 to 1 at June 30, 2019 and December 31, 2018, respectively.

59

A condensed table of cash flows for the six months ended June 30, 2019 and 2018 is presented below.

(Dollars in thousands)	Six months ended June 30,						Change from 2018 to 2019
	2019			2018				$		%
Cash flows used in operating activities	$	(31,139	)	$	(14,194	)		(16,945	)		-119.4	%
Cash flows used in investing activities		(57,856	)		(214,481	)		156,625			73.0	%
Cash flows provided by financing activities		10,309			188,449			(178,140	)		-94.5	%
Total cash flows	$	(78,686	)	$	(40,226	)	$	(38,460	)		-95.6	%

Cash Flows for the six months ended June 30, 2019

Cash decreased by $78.7 million during the six months ended June 30, 2019, as a result of cash used in operating and investing activities, partially offset by cash provided by financing activities.

Our operating activities used $31.1 million of cash from the net income of $3.9 million, adjusted for the cash used by operating assets and liabilities of $31.2 million, and adjusted by non-cash revenue and expense items of $4.0 million. The cash used by the change in operating assets and liabilities was primarily due to a decrease in accrued compensation of $27.7 million, increases in deposits and other assets of $12.5 million, increases in interest receivable of $4.9 million, and decreases in interest payable of $3.4 million, partially offset by a $10.8 million decrease in marketable securities, and a $8.0 million increase in other liabilities.

Our investing activities used $57.9 million of cash primarily due to a $35.2 million funding of loans collateralizing ABS issued, $27.8 million decrease in cash and restricted cash due to deconsolidation of subsidiaries, $25.6 million of funding of loans held for investment, and $9.6 million of purchases of other investments, partially offset by $23.8 million of receipts from loans collateralizing ABS issued, $10.4 million receipts from sales and distributions from other investments, and $7.0 million of in receipts from loans held for investment.

Our financing activities provided $10.3 million of cash primarily due to $16.6 million of proceeds from drawdowns on the line of credit, $7.8 million of proceeds from the drawdowns the CLO warehouse facility, partially offset by $8.6 million in purchases of common shares from treasury, $1.9 million in distributions and distribution equivalents on common shares and RSUs, $1.6 million in repayments on the line of credit, and $0.9 million of distributions to non-controlling interest shareholders.

Cash Flows for the six months Ended June 30, 2018

Cash decreased by $40.2 million during the six months ended June 30, 2018, as a result of cash used in operating and investing activities, partially offset by cash provided by financing activities.

Our operating activities used $14.2 million of cash from the net loss of $3.0 million, adjusted for the cash used by operating assets and liabilities of $19.0 million, and provided by non-cash revenue and expense items of $7.7 million. The cash used by the change in operating assets and liabilities was primarily due to a $17.8 million decrease in accrued compensation and a $8.3 million increase in interest receivable, partially offset by a $5.6 million decrease in deposits and other assets, a $2.5 million increase in other liabilities, and a $2.3 million increase in interest payable.

Our investing activities used $214.5 million of cash primarily due to a $193.0 million funding of loans collateralizing ABS issued and $225.4 million of funding for loans held for investment, partially offset by $172.4 million of receipts from loans collateralizing ABS issued, $22.1 million in receipts from loans held for investment, and $11.2 million in sales or distributions from other investments.

Our financing activities provided $188.4 million of cash primarily due to $327.6 million of proceeds from the issuance of asset-backed securities issued, $177.3 million of proceeds from drawdowns on CLO warehouse facilities, $18.0 million in proceeds from the line of credit, $4.5 million on proceeds from reissuance of asset-backed securities issues, and $3.9 million of proceeds from the Repurchase Agreement, partially offset by the repurchase of $332.1 million of ABS issued, $3.9 million of payments on the Repurchase Agreement, and $1.9 million in payments on debt issuance costs.

Contractual Obligations

As of June 30, 2019, our aggregate minimum future commitment on our leases was $31.3 million. See Note 9 of the notes to the consolidated financial statements for more information. Our remaining contractual obligations have not materially changed from those reported in our Annual Report.

60

Off-Balance Sheet Arrangements

The Company had unfunded commitments to lend of $0.8 million and $1.4 million as of June 30, 2019 and December 31, 2018, respectively. Had the borrower drawn on these, the Company would have been obligated to fund them. The funds for the unfunded commitments to lend and the cash collateral supporting these standby letters of credit are included in restricted cash on the Consolidated Statements of Financial Position as of December 31, 2018. The CLO-related commitments do not extend to JMP Group LLC. See Note 22 of the notes to the consolidated financial statements for more information on the financial instruments with off-balance sheet risk in connection with the CLOs.

Unfunded commitments are agreements to lend to a borrower, provided that all conditions have been met. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each borrower’s creditworthiness on a case-by-case basis.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a borrower to a third party. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to borrowers.

We had no other material off-balance sheet arrangements as of June 30, 2019. However, as described below under “Item 3. Quantitative and Qualitative Disclosures About Market Risk,” through indemnification provisions in our clearing agreements with our clearing broker, customer activities may expose us to off-balance sheet credit risk, which we seek to mitigate through customer screening and collateral requirements.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and of revenues and expenses during the reporting periods. We base our estimates and assumptions on historical experience and on various other factors that we believe are reasonable under the circumstances. The use of different estimates and assumptions could produce materially different results. For example, if factors such as those described under the caption “Risk Factors” in our Annual Report cause actual events to differ from the assumptions we used in applying the accounting policies, our results of operations, financial condition and liquidity could be adversely affected.

On an ongoing basis, we evaluate our estimates and assumptions, particularly as they relate to accounting policies that we believe are most important to the presentation of our financial condition and results of operations. We regard an accounting estimate or assumption to be most important to the presentation of our financial condition and results of operations where:

• the nature of the estimates or assumptions is material due to the level of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change; and

• the impact of the estimates or assumptions on our financial condition or operating performance is material.

Using the foregoing criteria, we consider the following to be our critical accounting policies:

● Valuation of Financial Instruments

● Asset Management Investment Partnerships

● Loans Collateralizing Asset-backed Securities Issued

● Allowance for Loan Losses

● Asset-backed Securities Issued

● Legal and Other Contingent Liabilities

● Income Taxes

● CLO Debt Securities

Our significant accounting policies are described further in the “Critical Accounting Policies and Estimates” section and Note 2 - Summary of Significant Accounting Policies in these financial statements and to our consolidated financial statements in our Annual Report.

61

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

ITEM 4. Controls and Procedures

Our management, with the participation of the Chairman and Chief Executive Officer (the principal executive officer) and the Chief Financial Officer (the principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our Chairman and Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective. There was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 5. Other Information

62

PART II—OTHER INFORMATION

ITEM 1. Legal Proceedings

We are involved in a number of judicial, regulatory and arbitration matters arising in connection with our business. The outcome of matters we have been and currently are involved in cannot be determined at this time, and the results cannot be predicted with certainty. There can be no assurance that these matters will not have a material adverse effect on our results of operations in any future period and a significant judgment could have a material adverse impact on our financial condition, results of operations and cash flows. We may in the future become involved in additional litigation in the ordinary course of our business, including litigation that could be material to our business. Management, after consultation with legal counsel, believes that the currently known actions or threats against us will not result in any material adverse effect on our financial condition, results of operations or cash flows.

ITEM 1A. Risk Factors

The risk factors included in our Annual Report continue to apply to us, and describe risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this Quarterly Report. There have not been any material changes from the risk factors previously described in our Annual Report.

63

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below sets forth the information with respect to purchases made by or on behalf of JMP Group LLC or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act), of our common shares during the quarter ended June 30, 2019.

					Total Number of
					Shares Purchased		Maximum Number of
	Total Number		Average Price		as Part of Publicly		Shares that May Yet Be
	of Shares		Paid		Announced Plans or		Purchased Under the
Period	Purchased		Per Share		Programs		Plans or Programs (1)
April 1, 2019 to April 30, 2019		121,035	$	3.96		121,035		91,951
May 1, 2019 to May, 2019		40,536	$	3.94		40,536		3,051,415
June 1, 2019 to June 30, 2019		1,816,732	$	3.95		1,816,732		-
Total		1,978,303				1,978,303

(1) The current repurchase program was initially authorized on December 13, 2017 and allowed for the  repurchase of up to one million of the Company’s outstanding common shares during 2018. On December 3, 2018, the Board of Directors of the Company approved the extension of the term of the Company’s share repurchase program through April 30, 2019. On April 22, 2019, the Board of Directors of the Company approved the extension of the term of the Company's share repurchase program through June 30, 2019. The Company terminated its repurchase program effective May 8, 2019 prior to the launch of the Tender Offer.   On May 13, 2019, the Company launched a self-tendered offer (the "Tender Offer") to repurchase for cash up to 3,000,000 of shares. The Tender Offer expired on June 13, 2019. The Tender Offer resulted in the Company's repurchase of 1,816,732 million of shares at a purchase price of $3.95 per share for a total purchase price of $7.2 million.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

 Not Applicable.

ITEM 5. Other Information

 None.

ITEM 6. Exhibits

See Exhibit Index.

64

EXHIBIT INDEX

Exhibit Number	Description
31.1*	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
10.29	Amendment Number Five to Second Amended and Restated Credit Agreement dated as of July 1, 2019, by and between JMP Holding LLC, as Borrower, the lenders party thereto and City National Bank, a national banking association, as the administrative agent for the lenders (incorporated by reference to Exhibit 10.29 to the Registrant's Form 8-K filed on July 3, 2019).
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Document
101.LAB*	XBRL Taxonomy Label Linkbase Document
101.PRE*	XBRL Taxonomy Presentation Linkbase Document

_________

*Filed herewith

** Furnish, not by filed

65

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 8, 2019

JMP Group LLC
By:	/s/  JOSEPH A. JOLSON
Name:	Joseph A. Jolson
Title:	Chairman and Chief Executive Officer
By:	/s/  RAYMOND S. JACKSON
Name:	Raymond S. Jackson
Title:	Chief Financial Officer

66

EX-31.1

Exhibit 31.1

JMP GROUP LLC                   

CERTIFICATION OF CHIEF EXECUTIVE OFFICER REQUIRED BY RULE 13A-14(A) OR RULE 15D-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

I, Joseph A. Jolson, certify that:

1. I have reviewed this quarterly report for the period ended June 30, 2019 on Form 10-Q of JMP Group LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2019

/s/ Joseph A. Jolson

Joseph A. Jolson

Chairman and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

JMP GROUP LLC

CERTIFICATION OF CHIEF FINANCIAL OFFICER REQUIRED BY RULE 13A-14(A) OR RULE 15D-14(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

I, Raymond S. Jackson, certify that:

1. I have reviewed this quarterly report for the period ended June 30, 2019 on Form 10-Q of JMP Group LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2019

/s/ Raymond S. Jackson

Raymond S. Jackson

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

JMP GROUP LLC

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.

In connection with the periodic report of JMP Group LLC (the “Company”) on Form 10-Q for the period ended June 30, 2019, as filed with the Securities and Exchange Commission (the “Report”), I, Joseph A. Jolson, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: August 8, 2019	/s/ Joseph A. Jolson
	Joseph A. Jolson
	Chief Executive Officer

This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

JMP GROUP LLC

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.

In connection with the periodic report of JMP Group LLC (the “Company”) on Form 10-Q for the period ended June 30, 2019, as filed with the Securities and Exchange Commission (the “Report”), I, Raymond S. Jackson, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: August 8, 2019	/s/ Raymond S. Jackson
	Raymond S. Jackson
	Chief Financial Officer

This certification accompanies this Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 2019
Document Information [Line Items]
Entity Registrant Name	JMP GROUP LLC
Entity Central Index Key	0001302350
Trading Symbol	jmp
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		19,324,427
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Asset
Cash and cash equivalents	$ 52,901	$ 70,927
Restricted cash	1,221	61,881
Investment banking fees receivable	6,169	6,647
Marketable securities owned (includes $68,151 and $18,874 at fair value at June 30, 2019 and December 31, 2018, respectively)	81,499	18,874
Other investments	32,112	16,124
Loans held for investment, net of allowance for loan losses	5,292	29,608
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		1,161,463
Interest receivable	386	3,004
Fixed assets, net	2,518	2,351
Operating lease right-of-use asset	21,096
Other assets	32,779	20,363
Total assets	235,973	1,391,242
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	2,724	4,626
Accrued compensation	13,672	41,609
Asset-backed securities issued, net of debt issuance costs		1,112,342
Interest payable	1,153	11,210
Note payable	15,812	829
CLO warehouse credit facilities		22,500
Bond payable (net of debt issuance costs of $2,219 and $2,428 at June 30, 2019 and December 31, 2018, respectively)	83,706	83,497
Operating lease liability	26,482
Other liabilities	17,252	17,423
Total liabilities	160,801	1,294,036
Commitments and Contingencies (Note 17)
JMP Group LLC Shareholders' Equity
Common shares, $0.001 par value, 100,000,000 shares authorized; 22,780,052 shares issued at both June 30, 2019 and December 31, 2018; 19,302,478 and 21,319,720 shares outstanding at June 30, 2019 and December 31, 2018, respectively	23	23
Additional paid-in capital	134,332	134,129
Treasury shares at cost, 3,477,574 and 1,460,332 shares at June 30, 2019 and December 31, 2018, respectively	(15,876)	(7,932)
Accumulated other comprehensive loss	(2,569)
Accumulated deficit	(40,469)	(42,513)
Total JMP Group LLC shareholders' equity	75,441	83,707
Nonredeemable Non-controlling Interest	(269)	13,499
Total equity	75,172	97,206
Total liabilities and equity	$ 235,973	$ 1,391,242

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Marketable securities fair value	$ 68,151	$ 18,874
Investments fair value	14,009	9,913
Asset-backed securities issud, net of debt issuance costs	0	8,979
Bond payable, debt issuance costs	$ 2,219	$ 2,428
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	22,780,052	22,780,052
Common stock, outstanding (in shares)	19,302,478	21,319,720
Treasury shares (in shares)	3,477,574	1,460,332

XML

Consolidated Statements of Financial Condition - (Continued) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Restricted cash		$ 1,221	$ 61,881
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,161,463
Interest receivable		386	3,004
Other investments		32,112	16,124
Other assets		32,779	20,363
Total assets		235,973	1,391,242
Asset-backed securities issued, net of debt issuance costs			1,112,342
Interest payable		1,153	11,210
Other liabilities		17,252	17,423
Total liabilities		160,801	1,294,036
Variable Interest Entity (VIE) or Potential VIE, Information Unavailability [Member]
Restricted cash			50,456
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,161,463
Interest receivable			2,711
Other investments			821
Other assets			67
Total assets			1,215,518
Asset-backed securities issued, net of debt issuance costs	[1]		1,122,187
Interest payable			10,132
Other liabilities			1,877
Total liabilities			$ 1,134,196

[1] Includes $9.8 million of debt held by the Company which is eliminated on the Consolidated Statements of Financial Condition.

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Revenue from Contract with Customer	$ 24,747	$ 39,387	$ 42,864	$ 71,138
Principal transactions	1,423	1,684	6,711	(1,936)
Loss on sale, payoff and mark-to-market of loans	(21)	(150)	(38)	(332)
Net dividend income	293	319	589	615
Other income	793	311	758	360
Non-interest revenues	27,235	41,551	50,884	69,845
Interest income	2,772	15,669	17,063	28,379
Interest expense	(1,939)	(11,634)	(12,712)	(21,336)
Net interest income	833	4,035	4,351	7,043
Loss on repurchase, reissuance or early retirement of debt		(42)		(2,668)
Provision for loan losses		(1,280)		(2,745)
Total net revenues after provision for loan losses	28,068	44,264	55,235	71,475
Non-interest expenses
Compensation and benefits	19,945	29,138	37,167	53,399
Administration	2,748	2,711	4,677	4,944
Brokerage, clearing and exchange fees	733	788	1,434	1,565
Travel and business development	1,347	1,202	2,368	2,156
Managed deal expenses	1,334	2,348	1,867	3,914
Communications and technology	1,127	1,047	2,180	2,109
Occupancy	1,409	1,143	2,832	2,260
Professional fees	821	1,138	2,277	3,043
Depreciation	311	287	608	551
Other	5	776	500	1,163
Total non-interest expenses	29,780	40,578	55,910	75,104
Net income (loss) before income tax expense	(1,712)	3,686	(675)	(3,629)
Income tax expense (benefit)	(517)	4,895	(4,619)	(673)
Net income (loss)	(1,195)	(1,209)	3,944	(2,956)
Less: Net income (loss) attributable to nonredeemable non-controlling interest	(83)	779	(13)	(685)
Net income (loss) attributable to JMP Group LLC	$ (1,112)	$ (1,988)	$ 3,957	$ (2,271)
Net income (loss) attributable to JMP Group LLC per common share:
Basic (in dollars per share)	$ (0.05)	$ (0.09)	$ 0.19	$ (0.11)
Diluted (in dollars per share)	$ (0.05)	$ (0.09)	$ 0.19	$ (0.11)
Weighted average common shares outstanding:
Basic (in shares)	20,772	21,537	21,028	21,601
Diluted (in shares)	20,772	21,537	21,151	21,601
Total Investment Banking Revenues [Member]
Revenues
Revenue from Contract with Customer	$ 17,736	$ 28,562	$ 29,615	$ 49,224
Total Brokerage Revenue [Member]
Revenues
Revenue from Contract with Customer	4,657	5,447	9,192	10,111
Total Asset Management Fees [Member]
Revenues
Revenue from Contract with Customer	$ 2,354	$ 5,378	$ 4,057	$ 11,803

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income (loss)	$ (1,195)	$ (1,209)	$ 3,944	$ (2,956)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of tax	(1,787)		(2,569)
Comprehensive income (loss) attributable to JMP Group LLC	(2,982)	(1,209)	1,375	(2,956)
Less: Comprehensive income (loss) attributable to non-controlling interest	(83)	779	(13)	(685)
Comprehensive income (loss) attributable to JMP Group LLC	$ (2,899)	$ (1,988)	$ 1,388	$ (2,271)

XML

Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands		Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2017		22,780
Balance at Dec. 31, 2017		$ 23	$ (5,955)	$ 134,719	$ (32,452)		$ 13,844	$ 110,179
Net income (loss)					(2,271)		(685)	(2,956)
Additional paid-in capital - share-based compensation				484				484
Distributions and distribution equivalents declared on common shares and restricted share units	[1]				(3,975)			(3,975)
Purchases of shares of common shares for treasury			(1,556)					(1,556)
Reissuance of shares of common shares from treasury			293					293
Distributions to non-controlling interest holders							(649)	(649)
Derecognition of non-controlling interest due to deconsolidation
Unrealized loss on available-for-sale securities, net of tax
Purchase of subsidiary shares from non-controlling interest holders				(656)			656
Capital contributions from non-controlling interest holders							449	449
Balance (in shares) at Jun. 30, 2018		22,780
Balance at Jun. 30, 2018		$ 23	(7,218)	134,547	(38,698)		13,615	102,269
Balance (in shares) at Dec. 31, 2017		22,780
Balance at Dec. 31, 2017		$ 23	(5,955)	134,719	(32,452)		13,844	110,179
Balance (in shares) at Dec. 31, 2018		22,780
Balance at Dec. 31, 2018		$ 23	(7,932)	134,129	(42,513)		13,499	97,206
Net income (loss)					3,957		(13)	3,944
Additional paid-in capital - share-based compensation				321				321
Distributions and distribution equivalents declared on common shares and restricted share units	[1]				(1,913)			(1,913)
Purchases of shares of common shares for treasury			(8,797)					(8,797)
Reissuance of shares of common shares from treasury			853	(118)				735
Distributions to non-controlling interest holders							(913)	(913)
Derecognition of non-controlling interest due to deconsolidation							(12,842)	(12,842)
Unrealized loss on available-for-sale securities, net of tax						(2,569)		(2,569)
Balance (in shares) at Jun. 30, 2019		22,780
Balance at Jun. 30, 2019		$ 23	$ (15,876)	$ 134,332	$ (40,469)	$ (2,569)	$ (269)	$ 75,172

[1] $7.7 million of distributions were dividends paid to shareholders at $0.36 per share. $0.2 million of distributions were dividend equivalents paid on restricted share units.

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 3,944	$ (2,956)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Provision for loan losses		2,745
Loss on sale and payoff of loans and mark-to-market of loans	38	332
Loss on repurchase, reissuance or early retirement of debt		2,668
Change in other investments:
(Income) loss from investments in equity method investees	(621)	387
Unrealized gain on other equity investments	(297)	(136)
Unrealized (gain) loss on other investments	(1,039)	197
Depreciation and amortization	428	480
Share-based compensation expense	1,057	778
Gain on deconsolidation	(3,520)
Other, net	94	296
Net change in operating assets and liabilities:
Increase in interest receivable	(4,913)	(312)
Decrease (increase) in receivables	478	(8,269)
Decrease (increase) in marketable securities	10,781	(630)
Decrease (increase) in other assets	(12,518)	5,551
Decrease in marketable securities sold, but not yet purchased	(1,902)	(2,289)
(Decrease) increase in interest payable	(3,430)	2,342
Decrease in accrued compensation	(27,670)	(17,842)
Increase in other liabilities	7,951	2,464
Net cash used in operating activities	(31,139)	(14,194)
Cash flows from investing activities:
Purchases of fixed assets	(904)	(580)
Purchases of other investments	(9,630)	(1,219)
Sales or distributions from other investments	10,364	11,172
Funding of loans collateralizing asset-backed securities issued	(35,153)	(193,024)
Funding of loans held for investment	(25,587)	(225,351)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued	23,806	172,415
Sale, payoff and principal receipts on loans held for investment	7,020	22,106
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries	(27,771)
Net cash used in investing activities	(57,855)	(214,481)
Cash flows from financing activities:
Proceeds from issuance of repurchase agreement		3,878
Repayment of repurchase agreement		(3,878)
Proceeds from drawdowns on line of credit	16,583
Proceeds from sale of note payable to affiliate		829
Payment of debt issuance costs		(1,857)
Repayment of line of credit	(1,600)
Repayment of asset-backed securities issued	(801)	(332,100)
Proceeds of issuance from asset-backed securities issued		327,605
Reissuance of asset-back securities		4,453
Distributions and distribution equivalents paid on common shares and RSUs	(1,913)	(3,975)
Capital contributions of nonredeemable non-controlling interest holders		449
Purchase of common shares for treasury	(8,614)	(1,525)
Distributions to non-controlling interest shareholders	(913)	(649)
Employee taxes paid on shares withheld for tax-withholding purposes	(184)	(31)
Net cash provided by financing activities	10,308	188,449
Net decrease in cash, cash equivalents, and restricted cash	(78,686)	(40,226)
Cash, cash equivalents and restricted cash, beginning of period	132,808	137,321
Cash, cash equivalents and restricted cash, end of period	54,122	97,095
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	16,142	18,994
Cash paid during the period for taxes	2,060	1,660
Non-cash investing and financing activities:
Reissuance of common shares from treasury related to vesting of restricted share units	854	293
Distributions declared but not yet paid		646
Acquisition of equity securities in restructuring of loans	259	809
Sale of other investments		1,400
Initial recognition of operating lease right-of-use assets	23,604
Initial recognition of operating lease right-of-use liabilities	29,278
Carrying value of noncash assets derecognized on deconsolidation of subsidiaries	1,226,848
Carrying value of noncash liabilities derecognized on deconsolidation of subsidiaries	1,161,933
Carrying value of non-controlling interest derecognized on deconsolidation of subsidiaries	12,842
Fair value of marketable securities recognized on deconsolidation of subsidiaries	76,879
Fair value of other investments recognized on deconsolidation of subsidiaries	7,516
CNB [Member]
Cash flows from financing activities:
Proceeds from drawdowns on line of credit	16,583	18,000
BNP Paribas [Member]
Cash flows from financing activities:
Proceeds from drawdowns on line of credit	$ 7,750	$ 177,250

XML

Note 1 - Organization and Description of Business

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.

Organization and Description of Business

       JMP Group LLC, together with its subsidiaries (collectively, the “Company”), is a diversified capital markets firm headquartered in San Francisco, California. The Company conducts its investment banking and institutional brokerage business through JMP Securities LLC (“JMP Securities”) and its asset management business through Harvest Capital Strategies LLC (“HCS”), HCAP Advisors LLC (“HCAP Advisors”), JMP Asset Management LLC (“JMPAM”), and JMP Credit Advisors LLC ("JMPCA") (through

March 19, 2019).

The Company conducts certain principal investment transactions through JMP Investment Holdings LLC (“JMP Investment Holdings”) and other subsidiaries. The above entities, other than HCAP Advisors, are wholly-owned subsidiaries. JMP Securities is a U.S. registered broker-dealer under the Securities Exchange Act of 

1934,

 as amended (the "Exchange Act”), and is a member of the Financial Industry Regulatory Authority (“FINRA”). JMP Securities operates as an introducing broker and does 

not

 hold funds or securities for, or owe any money or securities to customers and does 

not

 carry accounts for customers. All customer transactions are cleared through another broker-dealer on a fully disclosed basis. HCS is a registered investment advisor under the Investment Advisers Act of 

1940,

 as amended, and provides investment management services for sophisticated investors in investment partnerships and other entities managed by HCS. HCAP Advisors provides investment advisory services to Harvest Capital Credit Corporation (“HCC”). JMPAM currently manages 

two

 fund strategies: 

one

 that invests in real estate and real estate-related enterprises and another that provides credit to small and midsized private companies. JMPCA is an asset management platform that underwrites and manages investments in senior secured debt. The Company completed a Reorganization Transaction in 

January 2015 

pursuant to which JMP Group Inc. became a wholly-owned subsidiary of JMP Group LLC (the “Reorganization Transaction”). The Company entered into a Contribution Agreement in

November 2017

pursuant to which JMP Group Inc. became a wholly-owned subsidiary of JMP Investment Holdings, which is a wholly-owned subsidiary of JMP Group LLC. 

Recent Transactions

On

January 17, 2019,

the non-call period of JMP Credit Advisors CLO III(R) Ltd. (“CLO III”) expired, which resulted in a change in the entity with the control over the most significant activities of the variable interest entity (“VIE”). During the non-call period the Company concluded that it was the primary beneficiary of CLO III through its combination of control over the manager and its economic interest in CLO III. When the non-call period expired, holders of a majority of the subordinated notes could refinance or liquidate the CLO and the Company determined this to be the most significant activity. The expiration of the non-call period resulted in the Company losing control over the most significant activity of CLO III as it cannot unilaterally direct this activity. The Company deconsolidated CLO III as of

January 17, 2019.

The Company continues to hold approximately

47%

of the outstanding subordinated notes of CLO III and accounts for its ownership of the CLO III subordinated notes as an investment in a debt security. The Company has classified the subordinated notes as held-to-maturity. The Company recognized a gain of

$1.6

million as revenue from principal transactions on the deconsolidation of CLO III in

March 2019.

On

March 19, 2019,

the Company sold a

50.1%

equity interest in JMPCA to Medalist Partners LP (“Medalist”), an alternative asset management firm specializing in structured credit and asset-backed lending, and a

4.9%

interest to management employees of JMPCA. The Company retained

45.0%

of the equity interest in JMPCA. The sale of JMPCA was considered a reconsideration event as defined in Accounting Standard Codification (“ASC”)

810,

Consolidation

, which requires a new consolidation analysis, and the Company determined that JMPCA is a VIE after the transaction date. The Company determined that it was

not

the primary beneficiary of JMPCA as the Company is

not

the party with the power to direct the most significant activities of JMPCA. As the Company determined that it is

not

the primary beneficiary, the Company deconsolidated JMPCA as of the date of sale. As the Company retained

45.0%

of the equity interest of JMPCA and has significant influence, the Company has determined that it is required to account for its retained interest as an equity method investment, however the Company has made the election to apply the fair value option to this investment. The Company received a cash payment of

$0.3

million in consideration for the limited liability company interest sold and recorded a gain of

$3.4

million on deconsolidation as revenue from principal transactions. The Company will receive a portion of the subordinated management fees from the CLOs JMPCA managed as of the date of the sale and from CLO VI, once it securitizes. After the sale, JMPCA was renamed Medalist Partners Corporate Finance LLC.

The sale of JMPCA also required Medalist to provide additional capital to purchase an equity interest in JMP Credit Advisors Long-Term Warehouse Ltd (“CLO VI”) to finance the acquisition of broadly syndicated corporate loans. On

March 19, 2019,

Medalist related entities purchased

66%

of the outstanding equity interest of CLO VI for

$7.6

million. There was

no

gain or loss recognized on the sale of the equity interest.

After the sale of JMPCA, the Company lost the ability to direct the most significant activities of the following VIEs: JMP Credit Advisors CLO IV Ltd (“CLO IV”), JMP Credit Advisors CLO V Ltd (“CLO V”), and CLO VI (collectively with CLO III, the “CLOs”) and as a result, deconsolidated the aforementionedCLOs as of

March 19, 2019.

Previously the Company concluded that it was the primary beneficiary of CLO IV, CLO V, and CLO VI through its control over JMPCA and its ownership of

100%

of the equity interests of these CLOs. The Company continues to hold

100%

of the junior subordinated notes of CLO IV and CLO V and approximately

33%

of the equity interests of CLO VI as of

June 

30,

2019.

The Company owned

100%

and

25%

of the senior subordinated notes of CLO IV and CLO V, respectively, as of the date of deconsolidation. The Company sold all of its senior subordinated notes in CLO IV and CLO V in

May 2019.

The Company accounts for its ownership of the subordinated notes as an investment in a debt security and accounts for its ownership of the CLO VI equity interest as an equity investment. The Company classifies the junior subordinated notes of CLO IV and CLO V as available-for-sale securities and classified the senior subordinated notes as trading securities. Collectively, the Company recognized a loss on the deconsolidation of CLO IV, CLO V, and CLO VI of

$1.8

 million in

March 2019

in revenues from principal transactions. The Company recorded a loss of

$0.1

million on the sale of the senior subordinated notes of CLO IV and CLO V in

May 2019

in revenues from principal transactions.

The deconsolidation of the CLOs and JMPCA was accounted for based on the guidance in ASC

810,

Consolidation

. According to that guidance, the gain or loss on deconsolidation is calculated as the difference between (i) the aggregate of the fair value of the retained interest in the former subsidiaries, the fair value of any consideration received, and the carrying value of the non-controlling interest in the former subsidiaries; and (ii) the carrying value of the assets and liabilities of the former subsidiaries. The gain recognized by the Company is primarily the result of the remeasurement of the retained interest in the CLOs and JMPCA. The difference between these was recorded as a gain on deconsolidation in the Consolidated Statements of Operations under principal transactions revenue. The following table represents the consideration received, the fair value of the retained interest, and the resulting gain on deconsolidation of the CLOs and JMPCA:

Cash received:	$	7,942
Retained interest, at fair value (1)		74,989
Non-controlling interest, at carrying value		12,842
Total of consideration received, retained interest, and non-controlling interest	$	95,773
Less:
Net assets of deconsolidated subsidiaries, at carrying value (2)		92,581
Gain on deconsolidation		3,192
Gain on remeasurement of CLO IV and CLO V senior subordinated notes		328
Total gain on deconsolidation	$	3,520

( 1 )	The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively
( 2 )	The book value of the net assets of CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was  $24.5 million, $30.2 million, $25.8 million, $11.6 million, and $0.5 million, respectively

XML

Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.

Summary of Significant Accounting Policies

Basis of Presentation

 These

consolidated financial statements and related notes are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form

10

-Q and Article

10

of Regulation S-

X.

These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its Annual Report on Form 

10

-K for the year ended

December 31, 2018 (

the “Annual Report”). The results of operations for any interim period are

not

necessarily indicative of the results to be expected for a full year. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

The consolidated accounts of the Company include the wholly-owned subsidiaries and the partially-owned subsidiaries of which we are the majority owner or the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Non-controlling interests on the Consolidated Statements of Financial Condition at 

June 30

, 2019 

and

December 31, 2018 

relate to the interest of

third

parties in the partially-owned subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation.

   See Note

2

- Summary of Significant Accounting Policies in the Company's

Annual Report for the Company's significant accounting policies.

For the

six

 months ended

June 30, 2019,

there were

no

significant changes made to the Company’s significant accounting policies other than those described below and the accounting policy changes are attributable to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)

No.

2016

-

02,

Leases (Topic

842

). The Company adopted this standard on

January 1, 2019

using a modified retrospective approach. Accordingly, the new leasing standard was applied prospectively in the Company’s financial statements from

January 1, 2019

forward and reported financial information for historical comparable periods was

not

revised and will continue to be reported under the accounting standards in effect during those historical periods.

   Refer to Note

3

- Recent Accounting Pronouncements, for additional information.

CLO Debt Securities

Investments in CLO debt securities are accounted for according to their purpose and holding period. CLO debt security investments that are classified as trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company had

zero

CLO debt securities classified as trading securities as of

June 30, 2019

and

December 31, 2018. 

The Company previously classified its senior subordinated notes in CLO IV and CLO V as trading securities, but sold these notes in

May 2019

and recognized a loss of

$0.1

million for the

three

months ended

June 30, 2019.

The Company’s investments in debt securities classified as available-for-sale are comprised of junior subordinated notes in CLO IV and CLO V and are those that

may

be sold before maturity and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income ("OCI"). The Company had

$51.9

 million and

zero

CLO debt securities classified as available-for-sale securities as of

June 30, 2019

and

December 31, 2018,

respectively. The Company’s investment in CLO debt securities classified as held-to-maturity are comprised of CLO III junior subordinated notes and are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company had

$13.3

 million and

zero

CLO debt securities classified as held-to-maturity securities as of

June 30, 2019

and

December 31, 2018,

respectively. Interest on CLO debt securities are recognized in interest income on an accrual basis using the effective yield method. Realized gains and losses on the sale of debt securities are determined using the specific identification method and recognized in current period earnings in revenues from principal transactions.

The Company evaluates the available-for-sale and held-to-maturity investments in debt securities for other than temporary impairment ("OTTI") quarterly. Impairment would be recorded if the net present value of the cash flows of the investment is below amortized cost and the Company does

not

expect to recover the amortized cost basis before the security is expected to be sold or the security matures, whichever comes first. Should the Company determine that there is an OTTI, the amount of the impairment is bifurcated between losses related to credit losses, which is recognized in revenues from principal transactions, and all other factors, which is recognized in OCI. The Company recorded

no

OTTI on CLO debt securities for either of the

three

or

six

months ended

June 30, 2019

and

2018.

XML

Note 3 - Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

3.

Recent Accounting Pronouncemen

ts

 Accounting Standards to be adopted in Future Periods

ASU 

2016

-

13,

 

Measurement of Credit Losses on Financial Instruments (Topic 

326

),

 was issued in 

June 2016,

with subsequent amendments, to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This standard will become effective for fiscal years beginning after 

December 15, 2019. 

The Company is evaluating the impact of the adoption of this standard.

ASU

2017

-

08,

 

Receivables-Nonrefundable Fees and Other Costs (Sub-topic

310

-

20

): Premium Amortization on Purchased Callable Debt Securities,

 was issued in

March 2017

to shorten the amortization period for certain purchased callable debt securities held at a premium. It requires the premium to be amortized over the period until the earliest call date. The amendment does

not

make any changes for securities held at a discount. The new guidance will be effective for public business entities for fiscal years beginning after

December 15, 2019,

and interim periods within fiscal years beginning after

December 15, 2020.

Early adoption is permitted, including adoption in an interim period. The Company is evaluating the impact of the adoption of this standard.

ASU

2018

-

13,

Fair Value Measurement (Topic

820

)

, was issued in

August 2018

as part of the disclosure framework project to improve the effectiveness of the disclosures in the notes to the financial statements. The amendments in this update modify the disclosure requirements on fair value measurements in Topic

820,

Fair Value Measurement. The new guidance will be effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The Company is evaluating the impact of the adoption of this standard.

Recently Adopted Accounting Guidance

ASU

2016

-

02,

Leases (Topic

842

)

, was issued in

February 2016,

with subsequent amendments, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing information about leasing arrangements. The standard requires lessees to recognize the assets and liabilities arising from operational leases on the balance sheet. The Company adopted this standard on

January 1, 2019

using a modified retrospective approach and recognized its lease agreements as a right-of-use asset with a corresponding lease liability to reflect the present value of the future lease payments. Accordingly, the new leasing standard was applied prospectively in the Company’s financial statements from

January 1, 2019

forward and reported financial information for historical comparable periods was

not

revised and will continue to be reported under the accounting standards in effect during those historical periods. Additionally upon adoption the Company elected the package of practical expedients for leases that commenced before the date of adoption in which the Company was

not

required to reassess (i) whether any existing or expired contracts contain leases, (ii) the lease classification of existing or expired leases, and (iii) initial direct costs of existing or expired leases. On

January 1, 2019,

the Company recognized

$23.6

million as an operating lease right-of-use asset and

$29.3

million as an operating lease liability on the Consolidated Statements of Financial Condition related to its leasing obligations. As of

June 30, 2019,

the Company carried a

$21.1

 

million operating lease right-of-use asset and

a

$26.5

 

million operating lease liability on the Consolidated Statements of Financial Condition related to its leasing obligations.

XML

Note 4 - Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

4

.

Fair Value

Measurement

s

The following tables provide fair value information related to the Company

’s financial instruments at

June 30

, 2019 

and

December 31, 2018:

	June 30, 2019
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	52,901	$	52,901	$	-	$	-	$	52,901
Restricted cash and deposits		1,221		1,221		-		-		1,221
Marketable securities owned		81,499		16,252		-		64,157		80,409
Other investments		4,307		-		203		4,104		4,307
Other investments, measured at net asset value (1)		9,702		-		-		-		-
Loans held for investment, net of allowance for loan losses		5,292		-		884		4,423		5,307
Total assets:	$	154,922	$	70,374	$	1,087	$	72,684	$	144,145
Liabilities:
Marketable securities sold, but not yet purchased	$	2,724	$	2,724	$	-	$	-	$	2,724
Notes payable		15,812		-		14,983		829		15,812
Bond payable		83,706		-		87,223		-		87,223
Total liabilities:	$	102,242	$	2,724	$	102,206	$	829	$	105,759

	December 31, 2018
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	70,927	$	70,927	$	-	$	-	$	70,927
Restricted cash and deposits		61,881		61,881		-		-		61,881
Marketable securities owned		18,874		18,874		-		-		18,874
Other investments		490		-		490		-		490
Other investments, measured at net asset value (1)		9,423		-		-		-		-
Loans held for investment, net of allowance for loan losses		29,608		-		26,188		2,576		28,764
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		1,161,463		-		1,125,310		1,173		1,126,483
Total assets:	$	1,352,666	$	151,682	$	1,151,988	$	3,749	$	1,307,419
Liabilities:
Marketable securities sold, but not yet purchased	$	4,626	$	4,626	$	-	$	-	$	4,626
Notes payable		829		-		-		829		829
Asset-backed securities issued, net of debt issuance costs		1,112,342		-		1,091,677		-		1,091,677
Bond payable		83,497		-		78,642		-		78,642
CLO VI warehouse credit facility		22,500		-		22,500		-		22,500
Total liabilities:	$	1,223,794	$	4,626	$	1,192,819	$	829	$	1,198,274

( 1 ) In accordance with ASC 820 - 10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The carrying value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Statements of Financial Condition.

Recurring Fair Value Measurement

The following tables provide information related to the Company

’s assets and liabilities carried at fair value on a recurring basis at

June 30

, 2019 

and

December 31, 2018:

 

(In thousands)			June 30, 2019
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	68,151	$	16,252	$	-	$	51,899	$	68,151
Other investments:
Equity investments		4,104		-		-		4,104		4,104
Investments in hedge funds managed by the Company		203		-		203		-		203
Investments in other funds managed by the Company (1)		5,245		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		4,457		-		-		-		-
Total other investments		14,009		-		203		4,104		4,307
Total assets:	$	82,160	$	16,252	$	203	$	56,003	$	72,458
Marketable securities sold, but not yet purchased		2,724		2,724		-		-		2,724
Total liabilities:	$	2,724	$	2,724	$	-	$	-	$	2,724

(In thousands)			December 31, 2018
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	18,874	$	18,874	$	-	$	-	$	18,874
Other investments:
Investments in hedge funds managed by the Company		490		-		490		-		490
Investments in other funds managed by the Company (1)		5,503		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		3,920		-		-		-		-
Total other investments		9,913		-		490		-		490
Total assets:	$	28,787	$	18,874	$	490	$	-	$	19,364
Marketable securities sold, but not yet purchased		4,626		4,626		-		-		4,626
Total liabilities:	$	4,626	$	4,626	$	-	$	-	$	4,626

( 1 ) In accordance with ASC 820 - 10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Consolidated Statements of Financial Condition.

As of

June 30, 2019,

marketable securities sold but

not

yet purchased were primarily comprised of U.S. listed securities. As of

June 30, 2019,

marketable securities was comprised of U.S. listed equity securities and CLO debt securities. As of

December 31, 2018,

both marketable securities owned and marketable securities sold, but

not

yet purchased, were primarily comprised of U.S. listed equity securities.

Transfers between levels of the fair value hierarchy result from changes in the observability of fair value inputs used in determining fair values for different types of financial assets and are recognized at the beginning of the reporting period in which the event or change in circumstances that caused the transfer occurs. The Company’s policy is to recognize the fair value of transfers among Levels

1,

2

and

3

as of the end of the reporting period. For recurring fair value measurements, there were

no

transfers between Levels

1,

2

and

3

for the

six

months ended

June 30, 2019 

and the year ended

December 31, 2018.

The Company’s Level

2

assets held in other investments consist of investments in hedge funds managed by HCS. The carrying value of investments in hedge funds are calculated using the equity method and approximates fair value. Earnings or losses attributable to these investments are recorded in principal transactions. These assets are considered Level

2

as the underlying hedge funds are mainly invested in publicly traded stocks whose value is based on quoted market prices. The Company’s proportionate share of those investments is included in the tables above.

The investments in private equity funds managed by HCS and JMPAM are recognized using the fair value option. The Company uses the reported net asset value per share as a practical expedient to estimate the fair value of the funds. The risks associated with these investments are limited to the amounts of invested capital, remaining capital commitment and any management and incentive fees receivable.

The Company determined the fair value of short-term debt, which includes notes payable and CLO credit facilities, to approximate their carrying values. This was determined as the debt has either (

1

) a variable interest rate tied to LIBOR and therefore reflects market conditions, or (

2

) a term less than

one

year and there have been

no

observable changes in the credit quality of the Company since the issuance of the debt. Based on the fair value methodology, the Company has identified short-term debt as Level

2

liabilities.

The Company's Level

3

assets in other investments is comprised of investments in equity securities of private companies. The Company determines the fair value of the investments either through (

1

) using the net present value of discounted cash flows of the estimated value of the put option of the investment or (

2

) using a market multiples approach. For the investment whose fair value determined using the discounted cash flows approach, the Company has a put option on this investment that is exercisable at

three

times the management fee revenue of the entity for the prior

twelve

months as of the effective date of the put option. The put option

may

be elected beginning

March 31, 2022.

The significant unobservable inputs under this approach are the estimated

twelve

months of revenues, the credit factor and the discount rate. For this investment, the Company elected the fair value option as the Company determined that the fair value of its option to put the equity securities was the best representation of the fair value of the investment. While the Company has made other equity investments, it has

not

elected the fair value option for those investments as it is impractical to determine the fair value of those investments. For the investment whose fair value is determined using the market multiples approach, the Company determines the enterprise value of the investment using the investments estimated EBITDA and an EBITDA multiple from comparable companies. 

The Company’s Level

3

assets held in marketable securities consist of investments in CLO debt securities. The fair value of the CLO debt securities is determined using the net present value of discounted cash flows. The significant unobservable inputs used in the fair value measurement under this approach are the risk adjusted discount factors. The Company also uses performance and covenant compliance information provided by the CLO manager along with other risk factors including default risk, prepayment rates, interest rate risk, and credit spread risk when valuing this investment. During the

three

and

six

months ended

June 30, 2019,

the fair value of the Company's investment in CLO debt securities declined due a change that was deemed temporary. This conclusion was reached as the reduction in fair value was

not

due to credit factors and the Company believes that any reduction in fair value can be recovered before the security is sold or matures, whichever comes first.

For the

three

and

six

months ended

June 30, 2019,

the changes in Level

3

assets measured at fair value on a recurring basis were as follows:

(In thousands)	CLO junior subordinated notes			CLO senior subordinated notes			Equity Investment		Total
Balance as of December 31, 2018	$	-		$	-		$	57	$	57
Fair value at recognition date		54,279			9,289			3,568		67,136
Purchases		-			-			11		11
Accrued interest		294			34			-		328
Unrealized losses on investments, recognized in OCI		(1,055	)		-			-		(1,055	)
Balance as of March 31, 2019	$	53,518		$	9,323		$	3,636	$	66,477
Accrued interest		1,969			69			-		2,038
Purchases		-			-			171		171
Investment distributions		(1,170	)		(883	)		-		(2,053	)
Unrealized losses on investments, recognized in OCI		(2,418	)		-					(2,418	)
Unrealized gains on investments, recognized in earnings		-			-			297		297
Realized losses on sales, recognized in earnings		-			(112	)		-		(112	)
Sales		-			(8,397	)		-		(8,397	)
Balance as of June 30, 2019	$	51,899		$	-		$	4,104	$	56,003

For assets classified in the Level

3

hierarchy, any changes to any of the inputs to the fair value measurement could result in a significant increase or decrease in the fair value measurement. For CLO debt securities, a significant increase (decrease) in the discount rate, default rate, and severity rate would result in a significant decrease (increase) in the fair value of the instruments. For the equity investments, a significant increase (decrease) in the credit factor or the discount rate would result in a significantly lower (higher) fair value measurement or a significant increase (decrease) in the EBITDA multiple would result in a significant higher (lower) fair value measurement. For Level

3

assets measured at fair value on a recurring basis as of

June 30, 2019

and

December 31, 2018,

the significant unobservable inputs used in the fair value measurements were as follows:

(In thousands)		Significant Unobservable Inputs Range (Weighted-average)						Fair value
	Valuation Technique	Description	June 30, 2019			December 31, 2018		June 30, 2019		December 31, 2018
CLO debt security	Discounted cash flows	Risk adjusted discounting factor		15.0	%		N/A	$	64,157	$	-
		Default rate		0.0 - 2.0% (1.9	%)		N/A
		Severity rate		25.0	%		N/A
		Prepay rate		25 CPR			N/A
		Collateral liquidation price		99.0	%		N/A
Equity investments	Discounted cash flows	Credit factor		20.0	%		N/A	$	3,755	$	-
		Risk adjusted discounting factor		17.6	%		N/A
	Market	EBITDA Multiple	7.0x				N/A	$	349	$	57

The Company determined the fair value of loans collateralizing ABS issued and loans held for investment identified as Level

2

assets primarily using the average market bid and ask quotation obtained from a loan pricing service. The valuations are received from a pricing service to which the Company subscribes. The pricing service's analysis incorporates comparable loans traded in the marketplace, the obligors industry, future business prospects, capital structure, and expected credit losses. Significant declines in the performance of the obligor would result in decrease to the fair value measurement. The fair value of loans held for investment identified as Level

3

assets are determined using the discounted cash flow model using the treasury rate, loan interest rate, and an internally generated risk rate.

The Company determined the fair value of ABS issued based upon pricing from published market research for equivalent-rated CLO notes. Based on the fair value methodology, the Company has identified the asset-backed securities issued as Level

2

liabilities.

As of 

June 30

, 2019 

and

December 31, 2018,

$9.7

 million and

$9.4

 million of assets were measured using the net asset value as a practical expedient. Investments for which fair value was estimated using net asset value as a practical expedient were as follows:

				Fair Value at				Unfunded Commitments
Dollars in thousands	Redemption Frequency	Redemption Notice Period		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Limited partner investments in private equity/ real estate funds	Nonredeemable		N/A	$	4,457	$	3,920	$	4,833	$	68
Investment in other funds managed by the Company	Nonredeemable		N/A	$	5,245	$	5,503	$	1,776	$	1,945

Non

-

recurring Fair Value Measurements

The Company's asse

ts that are measured at fair value on a non-recurring basis result from the application of lower of cost or market accounting or write-downs of individual assets. The Company held loans measured at fair value on a non-recurring basis of

zero

and 

$1.3

 million as of

June 30

,

2019

and

December 31, 2018

, respectively

.

The Company had marketable securities that were measured at fair value on a non-recurring basis as the Company has the intent and ability to hold these securities until maturity. The Company held marketable securities measured at fair-value on a non-recurring basis of

$13.3

million as of

June 30

, 2019.

XML

Note 5 - Investment Securities

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

5.

Investment Securities

  The following table summarizes available-for-sale securities in an unrealized position as of

June 30, 2019:

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Total OTTI in OCI		Number of positions
CLO IV junior subordinated notes	$	28,280	$	-	$	(2,711	)	$	25,569	$	-		1
CLO V junior subordinated notes		27,092		-		(762	)		26,330		-		1
Total	$	55,372	$	-	$	(3,473	)	$	51,899	$	-

          The following table summarizes the held-to-maturity securities in an unrealized position as of

June 30, 2019:

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Number of positions
CLO III subordinated notes	$	13,348	$	-	$	(1,090	)	$	12,258		1
Total	$	13,348	$	-	$	(1,090	)	$	12,258

   The following table summarizes the fair value and amortized cost of the available-for-sale and held-to-maturity securities by contractual maturity as of

June 30, 2019:

(In thousands)	Available-for-sale				Held-to-maturity
	Amortized cost		Fair value		Amortized cost		Fair value
5-10 years	$	28,280		25,569		13,348		12,258
10+ years		27,092		26,330		-		-
Total	$	55,372	$	51,899	$	13,348	$	12,258

   The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of

June 30, 2019:

(In thousands)	Less than 12 months					Greater than 12 months				Total
	Fair value		Gross unrealized loss			Fair value		Gross unrealized loss		Fair value		Gross unrealized loss
CLO III subordinated notes	$	12,258	$	(1,090	)	$	-	$	-	$	12,258	$	(1,090	)
CLO IV junior subordinated notes		25,569		(2,711	)		-		-		25,569		(2,711	)
CLO V junior subordinated notes		26,330		(762	)		-		-		26,330		(762	)
Total	$	64,157	$	(4,563	)	$	-	$	-	$	64,157	$	(4,563	)

During the

three

 months ended

June 30, 2019

and

2018,

the Company recognized unrealized losses on CLO debt securities of

$2.4

million and zero, respectively. During the

six

months ended

June 30, 2019

and

2018,

the Company recognized unrealized losses on CLO debt securities of

$3.5

 million and zero, respectively.

XML

Note 6 - Loans

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Loans Collateralizing Asset Backed Securities Issued and Loans Held for Sale [Text Block]

6.

Loans 

Loans collateralizing ABS issued

During the period ending

June 30, 2019,

the Company deconsolidated its investments in the CLOs and as a result,

no

longer has loans collateralizing ABS on its Consolidated Statements of Financial Condition as of

June 30, 2019.

See Note

1

for additional information on deconsolidation. A summary of the activity in the allowance for loan losses for the

three

 and

six

months ended

June 30

, 2019 

and

2018

 is as follows:

(In thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-Impaired		Impaired			Non-Impaired			Impaired			Non-Impaired			Impaired			Non-Impaired
Balance, at beginning of period	$	-	$	-	$	(1,209	)	$	(6,492	)	$	(836	)	$	(9,751	)	$	(391	)	$	(6,533	)
Provision for loan losses:
Specific reserve		-		-		-			-			-			-			(953	)		-
General reserve		-		-		-			(369	)		-			-			-			(328	)
Charge off		-		-		1,099			-			181			-			1,234			-
Derecognition due to deconsolidation		-		-		-			-			655			9,751			-			-
Balance, at end of period	$	-	$	-	$	(110	)	$	(6,861	)	$	-		$	-		$	(110	)	$	(6,861	)

A loan is considered to be impaired when, based on current information, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the original loan agreement, including scheduled principal and interest payments. As of

December 31, 2018, 

$1.8

million of the recorded investment amount in loans collateralizing asset-backed securities issued were individually evaluated for impairment. The remaining 

$1,170.2

million of recorded investment amount of loans collateralizing asset-backed securities issued were collectively evaluated for impairment as of

December 31, 2018.

As of

 

December 31, 2018 

the Company classified all its loans as Cash Flow loans, as their funding decisions were all primarily driven by the cash flows of the borrower. The table below presents certain information pertaining to the loans on non-accrual status at 

December 31, 2018:

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	1,813	$	1,951	$	838	$	1,817	$	119
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	1,813	$	1,951	$	838	$	1,817	$	119

Loans are considered past due if the required principal and interest payments have

not

been received as of the date such payments were du

e.

No

loans were past due a

t

June 30

,

2019

 or

December 31, 2018.

The

Company had

one

troubled debt restructuring during the

six

months ended

June 30, 2019.

The loan, with a principal balance and a carrying balance of

$0.5

million and

$0.2

 million in total, respectively, was converted to equity. The Company valued the equity at

$0.2

 million in total upon conversion and recorded

no

material gain or loss upon the execution of the restructuring.

 During the year ended

December 31, 2018,

the Company had

two

 loans, which were modif

ied in a troubled debt res

tructuring. The loans, with a principal balance and a carrying balance of

$1.9

million and

$1.0

million in total, respectively, were converted to equity. The Company valued the equity at

$0.8

million in total upon conversion and incurred a loss of

$0.1

million in relation to the restructuring as of 

December 31, 2018. 

The Company

’s management, at least on a quarterly basis, reviews each loan and evaluates the credit quality of the loan. The review primarily includes the following credit quality indicators with regard to each loan:

1

) Moody’s rating,

2

) current internal rating,

3

) the trading price of the loan and

4

) performance of the obligor. The tables below present, by credit quality indicator, the Company’s recorded investment in loans collateralizing asset-backed securities issued at

December 31, 2018. These loans were deconsolidated as of

June 30

, 2019 as part of the deconsolidation of the CLOs. See Note 1 for additional information. 

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	7,300
Ba1 - Ba3		-		247,686
B1 - B3		-		856,204
Caa1 - Caa3		-		59,046
Ca		-		1,813
Total:	$	-	$	1,172,049
Internal rating: (1)
2	$	-	$	1,018,261
3		-		132,169
4		-		19,806
5		-		1,813
Total:	$	-	$	1,172,049
Performance:
Performing	$	-	$	1,170,236
Non-Performing		-		1,813
Total:	$	-	$	1,172,049

( 1 ) Loans with an internal rating of 3  or below are reviewed individually to identify loans to be designated for non-accrual status.

Loans Held for Investment

At

June 30, 2019 

and

December 31, 2018,

the number of loans held for investment outside of the CLO warehouse portfolio was

seven

and five, respectively. The Company reviews the credit quality of these loans within this portfolio segment on a loan by loan basis mainly focusing on the borrower’s financial position and results of operations as well as the current and expected future cash flows on the loans. As of 

December 31, 2018,

the Company held

$26.0

million of loans held for investment in the CLO VI warehouse portfolio. The credit quality of the CLO VI warehouse loans are evaluated in the same manner as the credit quality of loans collateralizing ABS issued. On

March 19, 2019,

the Company deconsolidated its investments in the CLO VI warehouse and a result,

no

longer has loans held for investment related to CLO VI on its Consolidated Statements of Financial Condition as of

June 30, 2019.

See Note

1

 for additional information on the deconsolidation.

Ther

e were

no

loans past due as of

June 30, 2019 

and

2018.

 A summary of activity in loan losses for the

three

and

six

months ended

June 30, 2019

and

2018

is as follows:

(in thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-impaired		Impaired			Non-impaired			Impaired			Non-impaired			Impaired			Non-impaired
Balance, at beginning of the period	$	-	$	-	$	(205	)	$	(858	)	$	(218	)	$	(181	)	$	(2,279	)	$	(494	)
Provision for loan losses
Specific		-		-		-			-			-			-			(205	)		-
General		-		-		-			(914	)		-			-			-			(1,278	)
Charge off		-		-		205			26			218			-			2,484			26
Derecognition due to deconsolidation		-		-		-			-			-			181			-			-
Balance, at end of the period	$	-	$	-	$	-		$	(1,746	)	$	-		$	-		$	-		$	(1,746	)

   A loan is considered to be impaired when, based on current information, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the original loan agreement, including scheduled principal and interest payments. As of

June 30, 2019 

and 

December 31, 2018,

zero

and 

$0.5

million of recorded investment amount of loans issued were individually evaluated for impairment, respectively. 

The

Company had

one

troubled debt restructuring during the

six

months ended

June 30, 2019.

The loan, with a principal balance and a carrying balance of

$0.5

million and

$0.2

 million in total, respectively, was converted to equity. The Company valued the equity at

$0.2

 million in total upon conversion and recoded

no

material gain or loss upon the execution of the restructuring.

During the

three

 and

six

months ended

June 30, 2018,

the Company had

two

 

loans, which were modified in a troubled debt restructuring. The 

two

  loans were held under the same borrower. The loans, with a principal balance and a carrying balance of $ 

1.9

  million and 

$1.0

  million in total, respectively, were converted to equity. The Company valued the equity at

$0.8

  million in total upon conversion and incurred a loss of 

$0.1

  million in relation to the restructuring as of

June 30, 2018.

   As of

December 31, 2018,

the Company classified all its loans held for investment as Cash Flow loans, as their funding decisions were all primarily driven by the cash flows of the borrower. There were

no

impaired loans on non-accrual status as of

June 30, 2019.

The table below presents certain information pertaining to the loans on non-accrual status as of 

December 31, 2018:

	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	462	$	484	$	219	$	462	$	34
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	462	$	484	$	219	$	462	$	34

The Company's management, at least on a quarterly basis, reviews each loan and evaluates the credit quality of the loan. The review primarily includes the following credit quality indicators with regard to each loan:

1

) Moody's rating,

2

) current internal rating (through

March 19, 2019)

3

) trading price of the loan, and

4

) performance of the obligor. The table below presents, by credit quality indicator, the Company's recorded investment in loans held for investment at

June 30, 2019 

and 

December 31, 2018:

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	-
Ba1 - Ba3		-		7,459
B1 - B3		906		18,342
Caa1 - Caa3		-		419
Ca		-		463
Not Rated		4,386		3,326
Total:	$	5,292	$	30,009
Internal rating: (1)
2	$	-	$	26,208
3		-		909
4		-		-
5		-		462
Not rated		5,292		2,430
Total:	$	5,292	$	30,009
Performance:
Performing	$	5,292	$	29,547
Non-performing		-		462
Total:	$	5,292	$	30,009

(

1

) Loans with an internal rating of

4

or below are reviewed individually to identify loans to be designated for non-accrual status.

XML

Note 7 - Debt

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

7.

Debt

Bond

Payable

(In thousands)	June 30, 2019			December 31, 2018
8.00% Senior Notes due 2023	$	36,000		$	36,000
7.25% Senior Notes due 2027		50,000			50,000
Total outstanding principal	$	86,000		$	86,000
Less: Debt issuance costs		(2,219	)		(2,428	)
Less: Consolidation elimination		(75	)		(75	)
Total bond payable, net	$	83,706		$	83,497

The 

8.00%

 Senior Notes due

2023

and the

7.25%

 Senior Notes due

2027

 (collectively, the “Senior Notes”) were issued by JMP Group Inc. pursuant to indentures with U.S. Bank National Association, as trustee. The

8.00%

 Senior Notes indentures contain a minimum liquidity covenant that obligates JMP Group Inc. to maintain liquidity of at least an amount equal to the lesser of (i) the aggregate amount due on the next

eight

scheduled quarterly interest payments on the 

8.00%

 Senior Notes, or (ii) the aggregate amount due on all remaining scheduled quarterly interest payments on the

$36

million

8.00%

 Senior Notes until the maturity of the

8.00%

Senior Notes. The Senior Notes indenture also contains customary event of default and cure provisions. If an uncured default occurs and is continuing, the trustee or the holders of at least

25%

in principal amount of the Senior Notes

may

declare the Senior Notes immediately due and payable. The Senior Notes are JMP Group Inc.’s general unsecured senior obligations, and rank equally with all existing and future senior unsecured indebtedness and are senior to any other indebtedness expressly made subordinate to the notes. At both

June 30, 2019 

and

December 31, 2018,

the Company was in compliance with the debt covenants in the indentures. 

The future scheduled principal payments of the debt obligations as of

June 30

,

2019

were as follows:

(In thousands)
2019	$	-
2020		-
2021		-
2022		-
2023		36,000
Thereafter		50,000
Total	$	86,000

Note Payable, 

Lines of Credit and Credit Facilities

(In thousands)	Outstanding Balance
	June 30, 2019		December 31, 2018
$100 million, CLO VI warehouse credit facility through October 11, 2021	$	-	$	22,500
$25 million, JMP Holding credit agreement through December 31, 2020		14,983		-
$20 million, JMP Securities revolving line of credit through June 6, 2020		-		-
Note payable		829		829
Total note payable, lines of credit, and credit facilities	$	15,812	$	23,329

The Company's Credit Agreement (the "Credit Agreement") dated as of

April 30, 2014,

was entered by and between JMP Holding and City National Bank ("CNB"). The Credit Agreement contains financial and other covenants, including, but

not

limited to, limitations on debt, liens and investments, as well as the

maintenance of certain financial covenants. A violation of any

one

of these covenants could result in a default under the Credit Agreement, which would permit CNB to terminate the Company’s note and require the immediate repayment of any outstanding principal and interest. At both

June 30

, 2019 

and

December 31, 2018,

the Company was in compliance with the loan covenants. As of

June 30

, 2019 

and

December 31, 2018,

the outstanding balance on the Credit Agreement wa

s 

$15.0

million and

zero

, res

pectively

.

The

$25

million line of credit has a LIBOR plus

225

bps interest rate, which will convert to a term loan after

December 31, 2020,

and will be repaid in quarterly installments of

3.75%

of funded debt for the

first

two

years,

5.00%

of funded debt for the next

two

years, and the remainder due at maturity. 

JMP Securities holds a

$20

million revolving line of credit with CNB to be used for regulatory capital purposes during its securities underwriting activities. 

The line of credit bears interest at a rate to be agreed upon at the time of advance between the Company and CNB.

 The net loans collateralizing the CLO VI warehouse facility were

zero

 and

$26.0

million as of

June 30, 2019

and

December 31, 2018,

respectively. As of

December 31, 2018,

the CLO VI warehouse facility has a market standard advance rate and the outstanding balances bear interest at LIBOR plus

1.250%

until

October 11, 2021,

which marks the end of the revolving period on the facility. The facility has a

12

 months amortization period after the revolving period in which the outstanding balances bear standard market interest rate based on LIBOR. During the

six

months ended

June 30, 2019,

the Company deconsolidated its investments in the CLO VI warehouse and as a result,

no

longer has the CLO VI warehouse credit facility on its Consolidated Statements of Financial Condition as of

June 30, 2019.

See Note

1

 for additional information on deconsolidation.

 On

January 9, 2018,

an affiliate purchased a

$0.8

million note from the Company. The note bears interest at a rate of

12.5%

per annum and matures

November 20, 2022.

As of

June 30, 2019,

the carrying value of the note payable

 was

$0.8

 

million.

XML

Note 8 - Asset-backed Securities Issued

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Asset Backed Securities Issued [Text Block]

8.

Asset-backed Securities Issued

 The table below sets forth the outstanding debt obligations of CLO III, CLO IV, and CLO V as of

December 31, 2018:

(In thousands)	As of December 31, 2018
	Outstanding Principal Balance			Interest Rate Spread to LIBOR			Weighted Average Remaining Maturity (years)
Class A Senior Secured Floating Rate Notes	$	769,750			0.85%-1.37	%		10.04
Class B Senior Secured Floating Rate Notes		143,700			1.30%-1.90	%		10.04
Class C Senior Secured Deferrable Floating Rate Notes		71,500			1.80%-2.65	%		9.99
Class D Senior Secured Deferrable Floating Rate Notes		68,350			2.60%-4.15	%		10.01
Class E Senior Secured Deferrable Floating Rate Notes		60,800			5.70%-6.80	%		10.03
Total secured notes sold to investors	$	1,114,100
Senior Subordinated Notes		7,221			6.90	%		11.00
Less: Debt issuance costs		(8,979	)
Total asset-backed securities issued	$	1,112,342

The secured notes and subordinated notes are limited recourse obligations payable solely from cash flows of the CLOs loan portfolios and related collection and payment accounts pledged as security. Payment on Class A notes rank senior in right of payment to the other secured notes and the subordinated notes. Payment on the Class B, Class C, Class D and Class E notes generally rank subordinate in right of payment to any other class of notes which has an earlier alphabetical designation. Payment of interest on the Class C, Class D, Class E, and senior subordinated notes is payable only to the extent proceeds are available under the applicable payment priority provisions. To the extent proceeds are

not

available, interest on the Class C, Class D, Class E, and senior subordinated notes will be deferred. The secured notes are secured by the CLOs loan portfolio and the funds on deposit in various related collection and payment accounts. The terms of the debt securitization subject the loans included in the CLOs loan portfolio to a number of collateral quality, portfolio profile, interest coverage and overcollateralization tests. The subordinated notes are subordinated in right of payment to all other classes of notes and are unsecured.

 During the

six

months ended

June 30, 2019,

the Company deconsolidated CLO III, CLO IV, and CLO V, and as a result,

no

longer carried the ABS issued on its Consolidated Statements of Financial Condition as of

June 30, 2019.

See Note

1

 for additional information on deconsolidation.

The net loans collateralizing asset-backed securities for CLO III, CLO IV, and CLO V was

$1,161.5

 million as of December

31,

2018.

  

XML

Note 9 - Leases

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

9.

Leases

Substantially all of the leases in which the Company is the lessee are office space leases with various terms with the maximum duration through

2026.

All of our leases are classified as operating leases, and therefore, were previously

not

recognized on the Company’s Consolidated Statements of Financial Condition. With the adoption of ASU

2016

-

02,

Leases (Topic

842

)

, operating lease agreements are required to be recognized on the Consolidated Statements of Financial Condition as a "right-of-use" (“ROU”) asset and a corresponding lease liability. 

The calculated amount of the ROU asset and lease liability are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. Regarding the discount rate, Topic

842

requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to

January 1, 2019,

the rate for the remaining lease term as of

January 1, 2019

was used.

	June 30, 2019
Weighted-average remaining lease term
Operating leases		5.79
Weighted-average discount rate
Operating leases		6.12	%

The Company leases office space in California, I

llinois, Georgia (through

March 19, 2019),

Massachusetts, Minnesota, Florida, and New York under various operating leases. Occupancy expense was

$1.4

 million and 

$1.1

 million f

or quarters ended

June 30

, 2019 

and

2018,

respectively. Occupancy expense was

$2.8

 million and 

$2.3

 million f

or 

six

months ended

June 30

, 2019 

and

2018,

respectively.

The California, Illinois, Minnesota and New York leases included a period of free rent at the start of the lease. Rent expense is recognized over the entire lease period. The aggregate minimum future lease payments of these leases are:

(In thousands)	Minimum Future Lease Payments
Year Ending December 31,
2019	$	2,153
2020		5,629
2021		5,693
2022		5,649
2023		5,643
Thereafter		6,562
Total minimum future lease payments		31,329
Amounts representing interest		(4,847	)
Present value of net future minimum lease payments	$	26,482

	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities	$	2,946
Operating leases	$	2,946

XML

Note 10 - Shareholders' Equity

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

10.

Shareholders’ Equity

Share Repurchase Program

On

February 17, 2017,

our board of directors authorized the repurchase of up to

1,000,000

shares through

December 31, 2018.

On

December 

3,

2018,

with the previous authorization expired, our board of directors approved the extension of the term of the Company's share repurchase program through

April 30, 2019.

On

April 22, 2019

the Company's board of directors approved the extension of the term of the Company's share repurchase program through

June 30, 2019.

During the

three

months ended

June 30, 2019,

the Company repurchased

161,571

of the Company’s shares, at an average price of

$3.96

 per share, for an aggregate purchase price of

$0.6

 million on the open market. During the

six

 months ended

June 30, 2019,

the Company repurchased

318,826

 of the Company’s shares, at an average price of

$4.09

 per share, for an aggregate purchase price of

$1.3

 million on the open market. The Company terminated its repurchase program effective

May 8, 2019,

prior to the launch of a self-tender offer.

Self-Tender Offer

On

May 13, 2019,

the Company launched a self-tendered offer (the "Tender Offer") to repurchase for cash up to

3,000,000

of shares representing limited liability interests of the Company, or approximately

14.2%

of the Company's outstanding common shares. The Tender Offer expired on

June 13, 2019.

The Tender Offer resulted in the Company's repurchase of

1,816,732

shares at a purchase price of

$3.95

per share for a total purchase price of

$7.2

million, excluding fees and expenses related to the Tender Offer.

XML

Note 11 - Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

11.

Accumulated Other Comprehensive Income

The following table summarizes the unrealized gains and losses on securities of accumulated other comprehensive losses, before tax, tax effect, and net of tax, for the

three

and

six

months ended

June 30, 2019:

(In thousands)	Before Tax			Tax Effect		Net of Tax
Beginning, January 1, 2019	$	-		$	-	$	-
Net unrealized losses during the period		(1,055	)		273		(782	)
Balance as of March 31, 2019	$	(1,055	)	$	273	$	(782	)
Net unrealized losses during the period		(2,418	)		631		(1,787	)
Balance as of June 30, 2019	$	(3,473	)	$	904	$	(2,569	)

XML

Note 12 - Share-based Compensation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

12.

Share

-Based Compensation

On

 January 27, 2015, 

the board of directors adopted the JMP Group LLC Amended and Restated Equity Incentive Plan (“JMP Group Plan”). 

T

he plan maintains authorization of the issuance of

4,000,000

shares, as originally approved by shareholders on

April 12, 2007

and subsequently approved by shareholders on

June 6, 2011. 

This amount is increased by any shares the Company purchases on the open market, or through any share repurchase or share exchange program, initiated by the Company unless the board of directors or its appointee determines otherwise. The Company will issue shares upon exercises or vesting from authorized but unissued shares or from treasury shares.

Share

Options

The following table summarizes the

share option activity for the

six

months ended

June 30

, 2019:

	Six Months Ended
	June 30, 2019
	Shares Subject		Weighted Average
	to Option		Exercise Price
Balance, beginning of year		1,300,000	$	6.85
Balance, end of period		1,300,000	$	6.85
Options exercisable at end of period		1,300,000	$	6.85

The following table summarizes the

share options outstanding as well as share options vested and exercisable as of

June 30

, 2019:

June 30, 2019

Options Outstanding

Options Vested and Exercisable

Weighted

Weighted

Average

Weighted

Average

Weighted

Range of

Remaining

Average

Aggregate

Remaining

Average

Aggregate

Exercise

Number

Contractual

Exercise

Intrinsic

Number

Contractual

Exercise

Intrinsic

Prices

Outstanding

Life in Years

Price

Value

Exercisable

Life in Years

Price

Value

$6.79 - $7.33

1,300,000

0.50

$

6.85

$

-

1,300,000

0.50

$

6.85

$

-

     The Company recognizes

share-based compensation expense for share options over the vesting period using the accelerated attribution method when they are subject to graded vesting and on a straight-line basis when they are subject to cliff vesting. The Company recognized compensation expense related to share option

s of

zero

 

for both the 

three

 and

six

months ended

June 30

, 2019 

and

2018,

respectively. 

    As of

June 30

, 2019,

there w

a

s

no

unrecognized compensation expense related to share options.

   

There

were

no

share options exercis

ed during both the 

three

 and

six

months ended

June 30

,

20

19

and

June 30

, 2018

. As a result, t

he Company did

not

recognize any current income tax benefits from the exercise of

share options.

   The Company uses

the Black-Scholes option-pricing model or other quantitative models to calculate the fair value of option awards.

Restricted

Share

Units

On

February 6, 2019

the Company granted approximately

280,000

RSUs to certain employees of the Company as part of the

2018

deferred compensation program.

50%

of these units will vest on

December 1, 2019

and the remaining

50%

will vest on

December 1, 2020,

subject to the grantees’ continued employment through such dates. The Company also granted RSUs for new hires throughout the year which have various vesting schedules.

  The following table summarizes

RSU activity for the

six

months ended

June 30

, 2019:

	Six Months Ended
	June 30, 2019
	Restricted			Weighted Average
	Share Units			Grant Date Fair Value
Balance, beginning of year		297,639		$	4.79
Granted		465,519			4.23
Vested		(162,048	)		4.55
Balance, end of period		601,110		$	4.42

The aggregate fair value of RSUs vested during

both the

three

months ended

June 30

, 2019

and

2018

 were

$376

 thousand and

$191

th

ousand, respectively. 

The aggregate fair value of RSUs vested during

both the

six

 months ended

June 30

, 2019

and

2018

 were

$737

 thousand and

$312

 th

ousand, respectively. 

The income tax benefits realized from the vested RSUs w

ere

$98

 th

ousand and

$28

thousand for 

the

three

months ended

June 30

, 2019

and

2018

, respectively. The income tax benefits realized from the vested RSUs were

$179

 th

ousand and

$28

thousand for 

the

six

 months ended

June 30

, 2019

and

2018

, respectively.

The Company recognizes compensation expense for RSUs over the vesting period using the accelerated attribution method when they are subject to graded vesting and on a straight-line basis when they are subject to cliff vesting.

For the

three

months ended

June 30

, 2019 

and

2018,

the Company recorded compensation expenses related to RSU's of

$0.6

 million and

$0.3

 million, respectively. For the

six

 months ended

June 30

, 2019 

and

2018,

the Company recorded compensation expenses related to RSU's of

$1.1

 million and

$0.8

 million,

 respectively. 

  For the

three

months ended

June 30, 2019

and

2018,

the Company recognized income tax benefits of

$155

 th

ousand and

$55

 thousand, respectively, related to the compensation expense recognized for RSUs. For the

six

 months ended

June 30, 2019

and

2018,

the Company recognized income tax benefits

of

$275

 th

ousand and

$113

 thousand, respectively, related to the compensation expense recognized for RSUs. As of

June 30, 2019,

there was

$1.5

 million of unrecognized compensation expense related to RSUs expected to be recognized over a weighted average period of

1.33

 years

The Company pays cash

distribution equivalents on certain RSUs upon vesting. Distribution equivalents paid on RSUs are generally charged to retained earnings. The Company accounts for the tax benefit related to distribution equivalents paid on RSUs as an increase in additional paid-in capital.

Share

Appreciation Rights

  In

February 2015,

the Company granted an aggregate of

2,865,000

share appreciation rights (“SARs”) to certain employees and the Company

’s inde

pendent directors. These SARs have a base price

of

$7.33

per share, an exercise period of

five

 years and have vested and became exercisable on

December 

31,

2017

 subject to the terms and conditions of the applicable grant agreements. The fair value of the SARs was determined using a quantitative model, using the following assumptions: expected life of

2.0

years, risk-free interest rate of

2.18%,

distribution yield of

17.44

%,

and volatility of

2

0.00%.

The risk-free rate was interpolated from the U.S. constant maturity treasuries for a term corresponding to the maturity of the SAR. The volatility was calculated from the historical weekly share prices of the Company as of the grant date for a term corresponding to the maturity of the SAR. The distribution yield was calculated

as the sum of the last

twelve

-month distributions over the share price as of the grant date.

The following table summarizes the

SARs activity for the

six

 months ended

June 30

,

2019

	Six Months Ended
	June 30, 2019
	Share Appreciation		Weighted Average
	Rights		Exercise Price
Balance, beginning of year		2,485,000	$	7.33
Balance, end of period		2,485,000	$	7.33

The following table summarizes the

share options outstanding as well as share options vested and exercisable as of

June 30

, 2019:

		June 30, 2019
		SARs Outstanding
				Weighted
				Average		Weighted
				Remaining		Average		Aggregate
Exercise		Number		Contractual		Exercise		Intrinsic
Price		Outstanding		Life in Years		Price		Value
$	7.33		2,485,000		0.50	$	7.33	$	-

The Company recognizes compensation expense for SARs over the vesting period, through monthly mark to market of adjustments to the liability award. For the

three

months ended

June 30

, 2019 

and

2018,

the Company recorded compensation benefit of

zero

and compensation expense of 

$25

thousand, respect

ively. For the

six

 months ended

June 30

, 2019 

and

2018,

the Company recorded compensation benefit of

zero

and 

$99

 thousand, respect

ively.

For the

three

months ended

June 30

, 2019 

and

2018,

the Company recognized income tax benefit

of

z

ero

and income tax expense of

$6

thousand 

related to the compensation expense recognized for SARs. For the

six

months ended

June 30

, 2019 

and

2018,

the Company recognized income tax benefit

of

z

ero

and 

$26

 thousand 

related to the compensation expense recognized for SARs. As of

June 30

, 2019,

there was

no

unrecognized compensation expense related to SARs.

XML

Note 13 - Net Income Per Common Share

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

13

. Net

Income

per Common

Share

Basic net income (loss) per share for the Company is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted net income (loss) per share is calculated by adjusting the weighted average number of outstanding shares to reflect the potential dilutive impact as if all potentially dilutive

share options or RSUs were exercised or converted under the treasury share method. However, for periods that the Company has a net loss, the effect of outstanding share options or RSUs is anti-dilutive and, accordingly, is excluded from the calculation of diluted loss per share.

The computations of

basic and diluted net income per share for the

three

 and

six

months ended

June 30

, 2019 

and

2018

 are shown in the tables below: 

(In thousands, except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019		2018
Numerator:
Net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957	$	(2,271	)
Denominator:
Basic weighted average shares outstanding		20,772			21,537			21,028		21,601
Effect of potential dilutive securities:
Restricted share units		-			-			123		-
Diluted weighted average shares outstanding		20,772			21,537			21,151		21,601
Net income (loss) per share
Basic	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)
Diluted	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)

Due to the net loss for

 

three

and

six

months ended

June 30

, 201

8

and

three

months ended

June 30, 2019

, all of the share o

ptions and restricted share units outstanding, were anti-dilutive and, therefore, were

not

included in the computation of diluted weighted-average common shares outstanding. 

XML

Note 14 - ASC 606 Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

14.

ASC

606

Revenue from contracts with customers

The following tables represent the Company's total revenues from contracts with customers, disaggregated by major business activity, for the

three

and

six

months ended

June 30, 2019

and

June 30, 2018,

respectively.

(in thousands)	Three Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	12,328		$	-	$	-	$	-	$	-	$	-		$	12,328
Strategic advisory and private placements		5,408			-		-		-		-		-			5,408
Total investment banking revenues		17,736			-		-		-		-		-			17,736
Commissions		3,063			-		-		-		-		-			3,063
Research payments		1,655			-		-		-		-		-			1,655
Net trading losses		(61	)		-		-		-		-		-			(61	)
Total brokerage revenues		4,657			-		-		-		-		-			4,657
Base management fees		-			1,533		-		1,533		-		(25	)		1,508
Incentive management fees		-			846		-		846		-		-			846
Total asset management fees		-			2,379		-		2,379		-		(25	)		2,354
Total revenues from contracts with customers	$	22,393		$	2,379	$	-	$	2,379	$	-	$	(25	)	$	24,747

(in thousands)	Three Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	24,050		$	-	$	-	$	-	$	-	$	-		$	24,050
Strategic advisory and private placements		4,512			-		-		-		-		-			4,512
Total investment banking revenues		28,562			-		-		-		-		-			28,562
Commissions		4,095			-		-		-		-		-			4,095
Research payments		1,650			-		-		-		-		-			1,650
Net trading losses		(298	)		-		-		-		-		-			(298	)
Total brokerage revenues		5,447			-		-		-		-		-			5,447
Base management fees		-			4,314		-		4,314		-		(1,051	)		3,263
Incentive management fees		-			344		2,017		2,361		-		(246	)		2,115
Total asset management fees		-			4,658		2,017		6,675		-		(1,297	)		5,378
Total revenues from contracts with customers	$	34,009		$	4,658	$	2,017	$	6,675	$	-	$	(1,297	)	$	39,387

(in thousands)	Six Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	19,117		$	-	$	-	$	-	$	-	$	-		$	19,117
Strategic advisory and private placements		10,498			-		-		-		-		-			10,498
Total investment banking revenues		29,615			-		-		-		-		-			29,615
Commissions		6,362			-		-		-		-		-			6,362
Research payments		2,864			-		-		-		-		-			2,864
Net trading losses		(34	)		-		-		-		-		-			(34	)
Total brokerage revenues		9,192			-		-		-		-		-			9,192
Base management fees		-			4,237		-		4,237		-		(1,032	)		3,205
Incentive management fees		-			588		264		852		-		-			852
Total asset management fees		-			4,825		264		5,089		-		(1,032	)		4,057
Total revenues from contracts with customers	$	38,807		$	4,825	$	264	$	5,089	$	-	$	(1,032	)	$	42,864

(in thousands)	Six Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	35,912		$	-	$	-	$	-	$	-	$	-		$	35,912
Strategic advisory and private placements		13,312			-		-		-		-		-			13,312
Total investment banking revenues		49,224			-		-		-		-		-			49,224
Commissions		7,986			-		-		-		-		-			7,986
Research payments		2,635			-		-		-		-		-			2,635
Net trading losses		(510	)		-		-		-		-		-			(510	)
Total brokerage revenues		10,111			-		-		-		-		-			10,111
Base management fees		-			8,321		-		8,321		-		(1,998	)		6,323
Incentive management fees		-			423		5,303		5,726		-		(246	)		5,480
Total asset management fees		-			8,744		5,303		14,047		-		(2,244	)		11,803
Total revenues from contracts with customers	$	59,335		$	8,744	$	5,303	$	14,047	$	-	$	(2,244	)	$	71,138

XML

Note 15 - Employee Benefits

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

15

. Employee Benefits

All salaried employees of the Company are eligible to participate in the JMP Group

401

(k) Plan after

three

months of employment. Participants

may

contribute up to the limits set by the U.S. Internal Revenue Service. Effective

January 1, 2015,

t

he Company contributes a match of

100%

of each participant’s contributions to the JMP Group

401

(k) Plan up to a maximum of

3%

of the participant’s compensation plus

50%

of the participant’s elective deferrals between

3%

and

5%.

All participants are immediately vested

100%

on matched contributions. The Company recorded JMP Group

401

(k) Plan matching expense of

$0.2

 m

illion and

$0.3

 million for the

three

months ended 

June 30

, 2019 

and

2018,

respectively. The Company recorded JMP Group

401

(k) Plan matching expense of

$1.1

 m

illion and

$1.2

 million for the

six

months ended 

June 30

, 2019 

and

2018,

respectively. 

XML

Note 16 - Income Taxes

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

16.

Income Taxes

JMP Group LLC’s election to be taxed as a corporation for United States federal income tax purposes was approved by the Internal Revenue Service with an effective date of

January 1, 2019.

Taxable income derived from the investment activities of its previously untaxed pass-through entities will now be taxed at a U.S. federal and state corporate rate, along with the Company’s corporate subsidiaries.

For the

three

months ended

June 30, 2019 

and

2018,

the Company recorded income tax benefit of

$0.5

 million and expense of

$4.9

 million, respectively. The effective tax rate is

30.20%

 and

132.80%

 for the

three

months ended

June 30, 2019 

and

2018,

respectively. For the

six

months ended

June 30, 2019 

and

2018,

the Company recorded income tax benefit of

$4.6

 million and 

$0.7

 million, respectively. The effective tax rate is

684.30%

 and 

18.55%

 for the

six

months ended

June 30, 2019 

and

2018,

respectively.

For financial reporting purposes, the Company’s effective tax rate used for the interim periods is based on the estimated full-year income tax rate. The effective tax rate differs from the statutory rate primarily due to the change in tax status from non-taxable to taxable which resulted in recognizing the initial temporary differences between book bases and tax bases of assets and liabilities.

The Company recognizes deferred tax assets and liabilities in accordance with ASC

740,

Income Taxes, and are determined based upon the temporary differences between the financial reporting and tax basis of the Company’s assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse.

XML

Note 17 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

17

. Commitments and Contingencies

      In connection with its underwriting activities, JMP Securities

 

may, 

from time to time, enter into firm commitments for the purchase of securities in return for a fee. These commitments require JMP Securities to purchase securities at a specified price. Securities underwriting exposes JMP Securities to market and credit risk, primarily in the event that, for any reason, securities purchased by JMP Securities cannot be distributed at anticipated price levels.

Settlement of transactions relating to such underwriting commitments, which were open at

June 30, 2019,

had

no

material effect on the Company's consolidated financial statements. JMP Securities had

no

open underwriting commitments as of

December 31, 2018.

The marketable

securities owned and the restricted cash, as well as the cash held by the clearing broker 

may

be used to maintain margin requirements. The Company had

$0.3

milli

on of cash on deposit with JMP Securities’ clearing broker at both

June 30, 2019 

and

December 31, 2018.

Furthermore, the marketable securities owned

may

be hypothecated or borrowed by the clearing broker.

Unfunded commitments are agreements to lend to a borrower,

provided that all conditions have been met. The Company had unfunded commitments to lend of

$0.8

million and

$28.7

million as of

June 30

,

2019

and

December 31, 2018

. U

sing the average market bid and ask quotation obtained from a loan pricing service, t

he Company determined the fair value of the unfunded commitments to be

$0.6

 million and

$27.0

 million as of

June 30

,

2019

and

December 31, 2018.

XML

Note 18 - Regulatory Requirements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

18

. Regulatory Requirements

JMP Securities is subject to the SEC

’s Uniform Net Capital Rule (Rule 

15c3

-

1

), which requires the maintenance of minimum net capital, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall

not

exceed

15

to

1.

JMP Securities had net capital o

f

$23.0

 

million and

$29.8

 million, which wer

e

$21.9

 

million and

$28.7

 million in excess of the required net capital

of 

$1.1

 m

illion and

$1.1

 million at June

30

, 2019 

and

December 31, 2018,

respectively. JMP Securities’ ratio of aggregate indebtedness to net capital was

0.72

to 

1

and

0.57

to

1

at

June 30

, 2019 

and

December 31, 2018,

respectively.

Since all customer transactions are cleared through another broker-dealer on a fully disclosed basis, JMP Securities is

not

required to maintain a separate bank account for the exclusive benefit of customers in accordance with Rule

15c3

-

3

under the Exchange Act.

XML

Note 19 - Related Party Transactions

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

19

. Related Party Transactions

The Company earns base management fees and incentive fees from serving as investment advisor for various entities, including corporations, partnerships

limited liability companies, and offshore investment companies. The Company also owns an investment in some of such affiliated entities. As of

June 30

, 2019 

and

December 31, 2018,

the aggregate fair value of the Company’s investments in the affiliated entities for which the Company serves as the investment advisor was

$22.9

m

illion and

$18.6

 million, respectively, which consisted of investments in hedge and other private funds o

f

$12.4

m

illion and

$8.6

 million, respectively, and an investment in HCC common stock of

$10.5

 million and

$10.0

 million, respectively. Base management fees earnedfrom these affiliated entities were

$1.5

 million and

$3.3

 million for the

three

months ended

June 30

, 2019 

and

2018.

Base management fees earned from these affiliated entities were

$3.2

 million and

$6.3

 million for the

six

months ended

June 30

, 2019 

and

2018.

 Also, the Company earned incentive fees of

$0.8

million and

$2.1

 million, from these affiliated entities for the

three

months ended

June 30

, 2019 

and

2018.

 The Company earned incentive fees of

$0.9

 million and

$5.5

 million, from these affiliated entities for the

six

months ended

June 30

, 2019 

and

2018.

 

On

September 19, 2017,

the Company made a loan to a registered investment adviser of

$3.4

million, at an interest rate of

15%

per year. In

October 2017,

the Company sold

30%

of the loan, or

$1.0

 million, to an affiliate. As of

June 30

,

2019

 and

December 

31,

 

2018,

the Company’s portion of the outstanding loan balance to this entity was both

 

$2.4

million.

The Company determined the fair value of loans held for investment to be

$2.5

 

million as of

June 30

,

2019

 and

$2.3

million as of

December 31, 2018

, using anticipated cash flows, discounted at an appropriate market credit adjusted interest rate.

On

January 9, 2018,

an affiliate purchased a

$0.8

million note from the Company. As of

June 30

, 2019,

the carrying value of note payable

 was

$0.8

million

.

On

January 9, 2018,

the Company sold a

30%

subscription into an investment series held by a subsidiary to an affiliate. The transaction resulted in the admission of the affiliate into the limited liability company subsidiary as a non-controlling member. The Company recorded

$0.5

 million as capital attributable to non-controlling interest upon execution as of December

31,

2018.

The Company has allocated income on the investment based on the affiliates' pro-rata share of ownership of the investment series of

$16

and

$31

 thousand for the

three

and

six

 months ended June

30,

2019.

The Company has allocated income on the investment based on the affiliates' pro-rata share of ownership of the investment series of

$15

and

$28

 thousand for the

three

and

six

months ended June

30

, 2018.

XML

Note 20 - Guarantees

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Guarantees [Text Block]

20.

Guarantees

JMP Securities has agreed to indemnify its clearing broker for losses that the clearing broker

may

sustain from the accounts of customers introduced by JMP Securities. Should a customer

not

fulfill its obligation on a transaction, JMP Securities

may

be required to buy or sell securities at prevailing market prices in the future on behalf of its customer. JMP Securities

’ obligation under the indemnification has

no

maximum amount. All unsettled trades at

June 30

, 2019 

and

December 31, 2018 

have subsequently settled with

no

resulting material liability to the Company. For the

three

and

six

months ended

June 30

, 2019 

and

2018,

the Company had

no

material loss due to counterparty failure, and has

no

obligations outstanding under the indemnification arrangement as of

June 30

, 2019 

or

December 31, 2018.

The Company is engaged in various investment banking and brokerage activities whose counterparties primarily include broker-dealers, banks and other financial institutions. In the event counterparties do

not

fulfill their obligations, the Company

may

be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company

’s policy to review, as necessary, the credit standing of each counterparty with which it conducts business.

XML

Note 21 - Litigation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

21.

Litigation

The Company

may

be involved from to time in a number of judicial, regulatory, litigation and arbitration matters arising in connection with

the business. The outcome of such matters the Company has been and/or currently is involved in cannot be determined at this time, and the results cannot be predicted with certainty. There can be

no

assurance that these matters will

not

have a material adverse effect on the results of operations in any future period and a significant outcome could have a material adverse impact on the Company’s financial condition, results of operations and cash flows.

The Company reviews the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability and the amount of loss, if any, can be reasonably estimated. Generally,

given the inherent difficulty of predicting the outcome of matters the Company is involved in, particularly cases in which claimants seek substantial or indeterminate damages, it is

not

possible to determine whether a liability has been incurred or to reasonably estimate the ultimate or minimum amount of that liability until the case is close to resolution. For these matters,

no

reserve is established until such time, other than for reasonably estimable legal fees and expenses. Management, after consultation with legal counsel, believes that the currently known actions or threats will

not

result in any material adverse effect on the Company’s financial condition, results of operations or cash flows.

XML

Note 22 - Financial Instruments With Off-balance Sheet Risk, Credit Risk or Market Risk

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

22.

Financial Instruments with Off-Balance Sheet Risk, Credit Risk or Market Risk

The majority of the Company

’s transactions, and consequently the concentration of its credit exposure, is with its clearing broker. The clearing broker is also a significant source of short-term financing for the Company, which is collateralized by cash and securities owned by the Company and held by the clearing broker. The Company’s securities owned

may

be pledged by the clearing broker. The receivable from the clearing broker represents amounts receivable in connection with the trading of proprietary positions.

The Company is also exposed to credit risk from other brokers, dealers and other financial institutions with which it transacts business. In the event that counterparties do

not

fulfill their obligations, the Company

may

be exposed to credit risk.

The Company

’s trading activities include providing securities brokerage services to institutional clients. To facilitate these customer transactions, the Company purchases proprietary securities positions (“long positions”) in equity securities. The Company also enters into transactions to sell securities

not

yet purchased (“short positions”), which are recorded as liabilities on the Consolidated Statements of Financial Condition. The Company is exposed to market risk on these long and short securities positions as a result of decreases in market value of long positions and increases in market value of short positions. Short positions create a liability to purchase the security in the market at prevailing prices. Such transactions result in off-balance sheet market risk as the Company’s ultimate obligation to satisfy the sale of securities sold, but

not

yet purchased,

may

exceed the amount recorded in the Consolidated Statements of Financial Condition. To mitigate the risk of losses, these securities positions are marked to market daily and are monitored by management to assure compliance with limits established by the Company.

Unfunded commitments are agreements to lend to a borrower, provided that all conditions have been met. Commitments generally have fixed expiration dates or other termination clauses and

may

require payment of a fee. Since certain commitments

may

expire without being drawn upon, the total commitment amounts do

not

necessarily represent future cash requirements. The Company evaluates each borrower

’s creditworthiness on a case by case basis.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a borrower to a

third

party. The Company

’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to borrowers. In connection with the CLOs, the Company had standby letters of credit

of

zero

a

nd

$1.4

 million as of

June 30

,

2019

 and December

31,

2018,

respectively. In addition, the Company had unfunded commitments to lend to a borrower. See Note

18

for description of the Company's unfunded commitments to lend as of

June 30

, 2019 

and

December 31, 2018.

XML

Note 23 - Business Segments

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

23.

Business Segments

 The Company’s business results are categorized into the following

four

business segments: Broker-Dealer, Asset Management Fee Income, Investment Income, and Corporate costs. The Broker-Dealer segment includes a broad range of services, such as underwriting and acting as a placement agent for public and private capital markets raising transactions and financial advisory services in M&A, restructuring and other strategic transactions. The Broker-Dealer segment also includes institutional brokerage services and equity research services to our institutional investor clients. The Asset Management Fee Income segment includes the management of a broad range of pooled investment vehicles, including the Company’s hedge funds, private equity funds, hedge funds of funds, and collateralized loan obligations. The Investment income segment includes income from the Company’s principal investments in public and private securities and investment funds managed by HCS, as well as any other net interest and income from investing activities, and interest expense related to the Company's bond issuance. The Corporate Costs segment also includes expenses related to JMP Group LLC, JMP Holding LLC and JMP Group Inc., and is mainly comprised of corporate overhead expenses.

 During the year ended

2018,

the Company changed its internal reporting which resulted in changes to the Company's segment information. The Company has restated the prior period presented herein to conform to the new presentation.

 Management uses operating net income as a key metric when evaluating the performance of JMP Group’s core business strategy and ongoing operations. This measure adjusts the Company’s net income as follows: (i) reverses share-based compensation expense related to historical equity awards granted in prior periods, (ii) recognizes

100%

of the cost of deferred compensation in the period for which such compensation was awarded, instead of recognizing such cost over the vesting period as required under GAAP, (iii) reverses amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of CLO III; (iv) unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, including depreciation and amortization; (v) reverses net unrealized gains and losses on strategic equity investments and warrants, (vi) excludes general loan loss provisions related to the CLOs, (vii) reverses 

one

-time transaction costs related to the refinancing of the debt; (viii) 

one

time expense associated with redemption of debt underlying the CLOs, the redemption of other debt, and the resulting acceleration of amortization of remaining capitalized issuance costs for each; and (ix) presents revenues and expenses on a basis that deconsolidates the CLOs and removes any non-controlling interest in consolidated but less than wholly owned subsidiaries. These charges

may

otherwise obscure the Company’s operating income and complicate an assessment of the Company’s core business activities. The operating pre-tax net income facilitates a meaningful comparison of the Company’s results in a given period to those in prior and future periods.

The Company’s segment information for the

three

and

six

 months ended June

30

, 2019 

and

2018

 was prepared using the following methodology:

• Revenues and expenses directly associated with each segment are included in determining segment operating income.

• Revenues and expenses not directly associated with a specific segment are allocated based on the most relevant measures applicable, including revenues, headcount and other factors.

• Each segment’s operating expenses include: a) compensation and benefits expenses that are incurred directly in support of the segments and b) other operating expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services.

• Assets directly associated with each segment are allocated to the respective segment. One exception is depreciable assets, which are held at the Corporate segment. The associated depreciation is allocated to the related segment.

• Investment Income segment assets are presented net of an intercompany loan.

Segment Operating Results

Management believes that the following information provides a reasonable representation of each segment’s contribution to revenues, income and assets:

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Broker-Dealer
Non-interest revenues	$	22,399		$	34,015		$	38,819		$	59,344
Total net revenues after provision for loan losses	$	22,399		$	34,015		$	38,819		$	59,344
Non-interest expenses		23,458			30,410			41,358			53,326
Segment operating pre-tax net income (loss)	$	(1,059	)	$	3,605		$	(2,539	)	$	6,018
Segment assets	$	53,622		$	70,349		$	53,622		$	70,349
Asset Management Fee Income
Non-interest revenues	$	2,536		$	4,572		$	4,897		$	8,561
Total net revenues after provision for loan losses	$	2,536		$	4,572		$	4,897		$	8,561
Non-interest expenses		2,883			4,756			5,973			9,776
Segment operating pre-tax net loss	$	(347	)	$	(184	)	$	(1,076	)	$	(1,215	)
Segment assets	$	11,424		$	20,529		$	11,424		$	20,529
Investment Income
Non-interest revenues	$	2,125		$	3,556		$	7,875		$	5,724
Net interest income		816			2,927			4,139			5,054
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(42	)
Provision for loan losses		-			(37	)		-			(930	)
Total net revenues after provision for loan losses	$	2,941		$	6,404		$	12,014		$	9,806
Non-interest expenses		495			3,372			3,044			7,561
Segment operating pre-tax net income	$	2,446		$	3,032		$	8,970		$	2,245
Segment assets	$	121,145			1,152,160		$	121,145			1,152,160
Corporate Costs
Non-interest expenses	$	1,982		$	2,573		$	4,042		$	4,831
Segment operating pre-tax net loss	$	(1,982	)	$	(2,573	)	$	(4,042	)	$	(4,831	)
Segment assets	$	276,693		$	282,699		$	276,693		$	282,699
Eliminations
Non-interest revenues	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Total net revenues after provision for loan losses	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Non-interest expenses		(34	)		(1,168	)		(1,048	)		(2,149	)
Segment operating pre-tax net income	$	-		$	-		$	-		$	2
Segment assets	$	(226,911	)	$	(274,705	)	$	(226,911	)	$	(274,705	)
Consolidating adjustments and reconciling items
Non-interest revenues	$	209	(a)	$	576	(a)	$	341	(a)	$	(1,637	)(a)
Net interest income		17	(b)		1,108	(b)		212	(b)		1,989	(b)
Loss on repurchase or early retirement of debt		-			-			-			(2,626	)
Provision for loan losses		-			(1,243	)		-			(1,815	)
Total net revenues after provision for loan losses	$	226		$	441		$	553		$	(4,089	)
Non-interest expenses		996	(c)		635	(c)		2,541	(c)		1,759	(c)
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Segment operating pre-tax net loss	$	(687	)	$	(973	)	$	(1,975	)	$	(5,163	)
Total Segments
Non-interest revenues		27,235			41,551			50,884			69,845
Net interest income		833			4,035			4,351			7,043
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(2,668	)
Provision for loan losses		-			(1,280	)		-			(2,745	)
Total net revenues after provision for loan losses	$	28,068		$	44,264		$	55,235		$	71,475
Non-interest expenses		29,780			40,578			55,910			75,104
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Total assets	$	235,973		$	1,251,031		$	235,973		$	1,251,031

(a)	Non-interest revenue adjustments are comprised of mark-to-market gains/losses on strategic equity investments and warrants, deferred compensation invested in funds, and unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, included depreciation and amortization.
(b)	The net interest income adjustment is comprised of costs related to refinancing and early retirement of debt.
(c)	Non-interest expense adjustments relate to reversals of share-based and deferred compensation and the amortization expense related to an intangible asset.

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Operating net income (loss)	$	(697	)	$	3,384		$	972		$	1,753
Addback (subtract) of segment income tax expense (benefit)		(245	)		496			341			466
Total segments adjusted operating pre-tax net income (loss)	$	(942	)	$	3,880		$	1,313		$	2,219
Subtract (addback)
Share-based awards and deferred compensation		587			69			1,431			213
General loan loss provision – CLOs, CLO warehouse		-			1,164			-			1,493
Early debt retirement/reissuance		-			-			-			1,318
CLO refinancing costs		-			(10	)		-			54
Amortization of intangible asset – CLO III		-			69			277			138
Unrealized (gain) loss on real estate fund investment – depreciation and amortization		221			(24	)		778			1,604
Unrealized mark-to-market (gain) loss on strategic equity investments		(121	)		(295	)		(511	)		343
Total consolidation adjustments and reconciling items		687			973			1,975			5,163
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Income tax expense (benefit)		(517	)		4,895			(4,619	)		(673	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957		$	(2,271	)

XML

Note 24 - Nonconsolidated Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Variable Interest Entity Disclosure [Text Block]

24

. Nonconsolidated Variable Interest Entities

    VIEs for which the Company is

not

the primary beneficiary consists of private equity funds, CLO investments, and other investments in which the Company has an equity ownership interest. In the

first

quarter of

2019,

the Company deconsolidated its CLOs from its Consolidated Statements of Financial Condition but retained an ownership investment in the CLOs. As the CLOs are VIEs, the CLOs are presented in the nonconsolidated VIE table as of June

30,

2019.

See Note

1

for additional information on deconsolidation of the CLOs. The Company

's maximum exposure to loss from its non-consolidated VIEs consists of equity investments and receivables as follows:

(In thousands)	As of
	June 30, 2019								December 31, 2018
	Financial Statement								Financial Statement
	Carrying Amount				Maximum				Carrying Amount				Maximum
	Assets		Liabilities		Exposure to Loss		VIE Assets		Assets		Liabilities		Exposure to Loss		VIE Assets
CLOs	$	78,348	$	-	$	78,348	$	1,363,427	$	-	$	-	$	-	$	-
Fund investments		5,215		-		6,645		192,378		5,083		-		7,028		204,646
Other investments		4,194		-		4,194		1,206,934		933		-		933		1,235,146
Total	$	87,757	$	-	$	89,187	$	2,762,739	$	6,016	$	-	$	7,961	$	1,439,792

XML

Note 25 - Consolidating Financial Statements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Condensed Financial Statements [Text Block]

25

.

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.'s obligations under the Senior Notes 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 financial statements present the financial condition, results of operations

, and cash flows of JMP Group LLC and JMP Investment Holdings LLC ("Parent Companies and Guarantors"), JMP Group Inc. ("Subsidiary Issuer"), all other consolidated subsidiaries (collectively "Non-Guarantor Subsidiaries"), and the elimination of entries necessary to consolidate or combine the Subsidiary Issuer with the Parent Companies and Guarantors and Non-Guarantor Subsidiaries. These statements are presented in accordance with the disclosure requirements under SEC Regulation S-

X

Rule

3

-

10.

	As of June 30, 2019
	Parent Companies and Guarantors		Subsidiary Issuer		Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Assets
Cash and cash equivalents	$	8,808	$	7,095	$	36,998		$	-		$	52,901
Restricted cash and deposits		-		1,221		-			-			1,221
Investment banking fees receivable, net of allowance for doubtful accounts		-		-		6,169			-			6,169
Marketable securities owned, at fair value		38,991		694		41,888			(74	)		81,499
Other investments		3,870		2,255		25,987			-			32,112
Loans held for investment, net of allowance for loan losses		1,958		906		2,428			-			5,292
Interest receivable		40		16		749			(419	)		386
Fixed assets, net		-		-		2,518			-			2,518
Operating lease right-of-use asset		-		21,096		-			-			21,096
Other assets		119		131,030		46,206			(144,576	)		32,779
Investment in subsidiaries		264,858		76,166		-			(341,024	)		-
Total assets	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973
Liabilities and Equity
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	$	-	$	-	$	2,724		$	-		$	2,724
Accrued compensation		685		1,001		11,986			-			13,672
Interest payable		-		1,071		501			(419	)		1,153
Notes payable		127,603		-		32,746			(144,537	)		15,812
Bond payable, net of debt issuance costs		-		83,780		-			(74	)		83,706
Operating lease right-of-use liability		-		26,482		-			-			26,482
Other liabilities		5,799		236		11,150			67			17,252
Total liabilities	$	134,087	$	112,570	$	59,107		$	(144,963	)	$	160,801
Total shareholders' equity		184,557		127,909		104,317			(341,342	)		75,441
Nonredeemable Non-controlling Interest	$	-	$	-	$	(481	)	$	212		$	(269	)
Total equity	$	184,557	$	127,909	$	103,836		$	(341,130	)	$	75,172
Total liabilities and equity	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973

	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 June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	17,736		$	-		$	17,736
Brokerage		-			-			4,657			-			4,657
Asset management fees		-			-			2,388			(34	)		2,354
Principal transactions		(26	)		421			1,028			-			1,423
Loss on sale, payoff and mark-to-market of loans		(21	)		-			-			-			(21	)
Net dividend income		16			28			249			-			293
Other income		206			-			587			-			793
Equity earnings (losses) of subsidiaries		865			(522	)		-			(343	)		-
Non-interest revenues (losses)		1,040			(73	)		26,645			(377	)		27,235
Interest income		1,880			1,113			1,717			(1,938	)		2,772
Interest expense		(1,056	)		(2,068	)		(752	)		1,937			(1,939	)
Net interest income (expense)		824			(955	)		965			(1	)		833
Total net revenues (losses) after provision for loan losses		1,864			(1,028	)		27,610			(378	)		28,068
Non-interest expenses
Compensation and benefits		445			1,048			18,452			-			19,945
Administration		155			109			2,518			(34	)		2,748
Brokerage, clearing and exchange fees		-			-			733			-			733
Travel and business development		37			12			1,298			-			1,347
Managed deal expense		-			-			1,334			-			1,334
Communications and technology		-			2			1,125			-			1,127
Occupancy		-			-			1,409			-			1,409
Professional fees		515			60			246			-			821
Depreciation		-			-			311			-			311
Other		-			-			5			-			5
Total non-interest expenses		1,152			1,231			27,431			(34	)		29,780
Net income (loss) before income tax expense		712			(2,259	)		179			(344	)		(1,712	)
Income tax benefit		(58	)		(344	)		(115	)		-			(517	)
Net income (loss)		770			(1,915	)		294			(344	)		(1,195	)
Less: Net loss attributable to nonredeemable non-controlling interest		-			-			(83	)		-			(83	)
Net income (loss) attributable to JMP Group LLC	$	770		$	(1,915	)	$	377		$	(344	)	$	(1,112	)

	For the Three Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	28,562		$	-		$	28,562
Brokerage		-			-			5,447			-			5,447
Asset management fees		-			-			5,420			(42	)		5,378
Principal transactions		533			(126	)		1,277			-			1,684
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(135	)		-			(150	)
Net dividend income		280			11			28			-			319
Other income		-			-			311			-			311
Equity earnings of subsidiaries		3,577			2,719			-			(6,296	)		-
Non-interest revenues		4,375			2,604			40,910			(6,338	)		41,551
Interest income		667			1,141			15,921			(2,060	)		15,669
Interest expense		(1,158	)		(2,299	)		(10,237	)		2,060			(11,634	)
Net interest income (expense)		(491	)		(1,158	)		5,684			-			4,035
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			-			-			(42	)
Provision for loan losses		-			-			(1,280	)		-			(1,280	)
Total net revenues after provision for loan losses		3,842			1,446			45,314			(6,338	)		44,264
Non-interest expenses
Compensation and benefits		621			1,235			27,282			-			29,138
Administration		171			101			2,481			(42	)		2,711
Brokerage, clearing and exchange fees		-			-			788			-			788
Travel and business development		(31	)		4			1,229			-			1,202
Managed deal expense		-			-			2,348			-			2,348
Communications and technology		1			2			1,044			-			1,047
Occupancy		-			-			1,143			-			1,143
Professional fees		590			67			481			-			1,138
Depreciation		-			-			287			-			287
Other		69			-			707			-			776
Total non-interest expenses		1,421			1,409			37,790			(42	)		40,578
Net income (loss) before income tax expense		2,421			37			7,524			(6,296	)		3,686
Income tax expense		-			3,734			1,161			-			4,895
Net income (loss)		2,421			(3,697	)		6,363			(6,296	)		(1,209	)
Less: Net income (loss) attributable to nonredeemable non-controlling interest		815			-			(36	)		-			779
Net income (loss) attributable to JMP Group LLC	$	1,606		$	(3,697	)	$	6,399		$	(6,296	)	$	(1,988	)

	For the Six Months Ended June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	29,615		$	-		$	29,615
Brokerage		-			-			9,192			-			9,192
Asset management fees		-			-			4,105			(48	)		4,057
Principal transactions		391			483			5,837			-			6,711
Loss on sale, payoff and mark-to-market of loans		(21	)		-			(17	)		-			(38	)
Net dividend income		118			40			431			-			589
Other income		235			-			523			-			758
Equity earnings (losses) of subsidiaries		11,757			(1,258	)		-			(10,499	)		-
Non-interest revenues		12,480			(735	)		49,686			(10,547	)		50,884
Interest income		2,830			2,203			16,143			(4,113	)		17,063
Interest expense		(2,112	)		(4,134	)		(10,578	)		4,112			(12,712	)
Net interest income (expense)		718			(1,931	)		5,565			(1	)		4,351
Total net revenues (losses) after provision for loan losses		13,198			(2,666	)		55,251			(10,548	)		55,235
Non-interest expenses
Compensation and benefits		1,026			2,092			34,049			-			37,167
Administration		302			219			4,204			(48	)		4,677
Brokerage, clearing and exchange fees		-			-			1,434			-			1,434
Travel and business development		73			20			2,275			-			2,368
Managed deal expense		-			-			1,867			-			1,867
Communications and technology		2			1			2,177			-			2,180
Occupancy		-			-			2,832			-			2,832
Professional fees		1,085			124			1,068			-			2,277
Depreciation		-			-			608			-			608
Other		277			-			223			-			500
Total non-interest expenses		2,765			2,456			50,737			(48	)		55,910
Net income (loss) before income tax expense		10,433			(5,122	)		4,514			(10,500	)		(675	)
Income tax expense (benefit)		255			(5,243	)		369			-			(4,619	)
Net income (loss)		10,178			121			4,145			(10,500	)		3,944
Less: Net income (loss) attributable to nonredeemable non-controlling interest		167			-			(180	)		-			(13	)
Net income (loss) attributable to JMP Group LLC	$	10,011		$	121		$	4,325		$	(10,500	)	$	3,957

	For the Six Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	49,224		$	-		$	49,224
Brokerage		-			-			10,111			-			10,111
Asset management fees		-			-			12,025			(222	)		11,803
Principal transactions		(2,646	)		(144	)		854			-			(1,936	)
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(317	)		-			(332	)
Net dividend income		551			14			50			-			615
Other income		-			-			360			-			360
Equity earnings of subsidiaries		7,100			2,791			-			(9,891	)		-
Non-interest revenues		4,990			2,661			72,307			(10,113	)		69,845
Interest income		1,331			2,283			28,895			(4,130	)		28,379
Interest expense		(2,302	)		(4,592	)		(18,571	)		4,129			(21,336	)
Net interest income (expense)		(971	)		(2,309	)		10,324			(1	)		7,043
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			(2,626	)		-			(2,668	)
Reversal (provision) for loan losses		15			-			(2,760	)		-			(2,745	)
Total net revenues after provision for loan losses		3,992			352			77,245			(10,114	)		71,475
Non-interest expenses
Compensation and benefits		1,081			2,076			50,242			-			53,399
Administration		326			238			4,602			(222	)		4,944
Brokerage, clearing and exchange fees		-			-			1,565			-			1,565
Travel and business development		35			18			2,103			-			2,156
Managed deal expense		-			-			3,914			-			3,914
Communications and technology		1			5			2,103			-			2,109
Occupancy		-			-			2,260			-			2,260
Professional fees		1,261			152			1,630			-			3,043
Depreciation		-			-			551			-			551
Other		138			-			1,025			-			1,163
Total non-interest expenses		2,842			2,489			69,995			(222	)		75,104
Net income (loss) before income tax expense		1,150			(2,137	)		7,250			(9,892	)		(3,629	)
Income tax expense (benefit)		-			(2,255	)		1,582			-			(673	)
Net income (loss)		1,150			118			5,668			(9,892	)		(2,956	)
Less: Net loss attributable to nonredeemable non-controlling interest		(231	)		-			(454	)		-			(685	)
Net income (loss) attributable to JMP Group LLC	$	1,381		$	118		$	6,122		$	(9,892	)	$	(2,271	)

	For the Six Months Ended June 30, 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	$	12,953		$	(11,085	)	$	(22,507	)	$	(10,500	)	$	(31,139	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(904	)		-			(904	)
Purchases of other investments		(401	)		(363	)		(8,866	)		-			(9,630	)
Sales or distributions from other investments		1,840			329			9,073			(878	)		10,364
Funding of loans collateralizing asset-backed securities issued		-			-			(35,153	)		-			(35,153	)
Funding of loans held for investment		(1,131	)		(876	)		(23,580	)		-			(25,587	)
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		139			7			6,874			-			7,020
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries		-			-			(27,771	)		-			(27,771	)
Investment in subsidiary		10,301			1,261			-			(11,562	)		-
Net cash provided by (used in) investing activities	$	10,748		$	358		$	(56,521	)	$	(12,440	)	$	(57,855	)
Cash flows from financing activities:
Proceeds from drawdowns on line of credit		-			-			16,583			-			16,583
Proceeds from drawdowns on CLO warehouse facilities		-			-			7,750			-			7,750
Repayment of line of credit		-			-			(1,600	)		-			(1,600	)
Repayment of asset-backed securities issued		-			-			(1,679	)		878			(801	)
Distributions and distribution equivalents paid on common shares and RSUs		(1,913	)		-			-			-			(1,913	)
Purchases of common shares for treasury		(8,614	)		-			-			-			(8,614	)
Distributions to non-controlling interest shareholders		(913	)		-			-			-			(913	)
Employee taxes paid on shares withheld for tax-withholding purposes		(184	)		-			-			-			(184	)
Capital contributions of parent		(8,133	)		9,067			(22,996	)		22,062			-
Net cash provided by (used in) financing activities	$	(19,757	)	$	9,067		$	(1,942	)	$	22,940		$	10,308
Net increase (decrease) in cash and cash equivalents		3,944			(1,660	)		(80,970	)		-			(78,686	)
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	$	8,807		$	8,316		$	36,999		$	-		$	54,122

	For the Six Months Ended June 30, 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	$	23,243		$	(1,130	)	$	(26,374	)	$	(9,933	)	$	(14,194	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(580	)		-			(580	)
Purchases of other investments		(5,187	)		(430	)		(55	)		4,453			(1,219	)
Sales or distributions from other investments		13,161			116			2,306			(4,411	)		11,172
Funding of loans collateralizing asset-backed securities issued		-			-			(193,024	)		-			(193,024	)
Funding of loans held for investment		14			-			(225,365	)		-			(225,351	)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued		(15	)		-			172,430			-			172,415
Sale, payoff and principal receipts on loans held for investment		1,560			-			20,546			-			22,106
Investment in subsidiary		9,466			(3,914	)		-			(5,552	)		-
Net cash provided by (used in) investing activities		18,999		$	(4,228	)	$	(223,742	)	$	(5,510	)	$	(214,481	)
Cash flows from financing activities:
Proceeds from issuance of repurchase agreement		3,878			-			-			-			3,878
Repayment of repurchase agreement		(3,878	)		-			-			-			(3,878	)
Proceeds from drawdowns on line of credit		-			-			18,000			-			18,000
Proceeds from drawdowns of CLO warehouse facility		-			-			177,250			-			177,250
Proceeds from sale of note payable to affiliate		-			-			829			-			829
Payment of debt issuance costs		-			(142	)		(1,715	)		-			(1,857	)
Repayment of asset-backed securities issued		(4,453	)		-			(327,647	)		-			(332,100	)
Proceeds of issuance from asset-backed securities issued		-			-			327,605			-			327,605
Reissuance of asset-backed securities		4,411			-			42			-			4,453
Distributions and distribution equivalents paid on common shares and RSUs		(3,975	)		-			-			-			(3,975	)
Purchase of subsidiary shares from non-controlling interest holders		(656	)		-			656			-			-
Capital contributions of nonredeemable non-controlling interest holders		-			-			449			-			449
Purchases of common shares for treasury		(1,525	)		-			-			-			(1,525	)
Distributions to non-controlling interest shareholders		(540	)		-			(109	)		-			(649	)
Employee taxes paid on shares withheld for tax-withholding purposes		(31	)		-			-			-			(31	)
Capital contributions of parent		(46,348	)		5,587.00			25,318			15,443			-
Net cash provided by (used in) financing activities	$	(53,117	)	$	5,445		$	220,678		$	15,443		$	188,449
Net increase (decrease) in cash and cash equivalents		(10,875	)		87			(29,438	)		-			(40,226	)
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	$	2,757		$	6,377		$	87,961		$	-		$	97,095

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Note 26 - Subsequent Events

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

26

. Subsequent Events

On

August 1

, 2019

,

the Company’s board of directors declared cash distributions of

$0.04

 per share for the

second

quarter of 

2019

.

The distribution is payable on

August 30, 2019

,

to shareholders of record as of

August 16

, 2019

. 

On

July 1, 2019,

JMP Holding LLC, a wholly-owned subsidiary of the Company, entered into an Amendment Number Five (the "Fifth Amendment") to the Second Amended and Restated Credit Agreement. The Fifth Amendment made various updates, clarifications and conforming changes to the Credit Agreement relating to changes in the business and corporate structure of the Company since the Credit Agreement was originally entered into by the Borrower. The Amendment also extends the maturity date of the line of credit to

December 31, 2020.

On

July 18, 2019,

JMP Group Inc., a wholly-owned subsidiary of the Company, redeemed

$11.0

million principal amount (

440,000

units) of its issued and outstanding

8.00%

Senior Notes due

2023.

The redemption price was 

$25

per unit plus accrued and unpaid interest up to, but excluding, the redemption date of

July 18, 2019.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 These

consolidated financial statements and related notes are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. These consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”). The results of operations for any interim period are not necessarily indicative of the results to be expected for a full year. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information.

The consolidated accounts of the Company include the wholly-owned subsidiaries and the partially-owned subsidiaries of which we are the majority owner or the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Non-controlling interests on the Consolidated Statements of Financial Condition at  June 30, 2019 and December 31, 2018 relate to the interest of third parties in the partially-owned subsidiaries. Certain prior year amounts have been reclassified to conform to current year presentation.

   See Note 2 - Summary of Significant Accounting Policies in the Company's

Annual Report for the Company's significant accounting policies.

For the six months ended June 30, 2019, there were no significant changes made to the Company’s significant accounting policies other than those described below and the accounting policy changes are attributable to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted this standard on January 1, 2019 using a modified retrospective approach. Accordingly, the new leasing standard was applied prospectively in the Company’s financial statements from January 1, 2019 forward and reported financial information for historical comparable periods was not revised and will continue to be reported under the accounting standards in effect during those historical periods.

   Refer to Note 3 - Recent Accounting Pronouncements, for additional information.

Marketable Securities, Policy [Policy Text Block]

CLO Debt Securities

Investments in CLO debt securities are accounted for according to their purpose and holding period. CLO debt security investments that are classified as trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company had

zero

CLO debt securities classified as trading securities as of

June 30, 2019

and

December 31, 2018. 

The Company previously classified its senior subordinated notes in CLO IV and CLO V as trading securities, but sold these notes in

May 2019

and recognized a loss of

$0.1

million for the

three

months ended

June 30, 2019.

The Company’s investments in debt securities classified as available-for-sale are comprised of junior subordinated notes in CLO IV and CLO V and are those that

may

be sold before maturity and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income ("OCI"). The Company had

$51.9

 million and

zero

CLO debt securities classified as available-for-sale securities as of

June 30, 2019

and

December 31, 2018,

respectively. The Company’s investment in CLO debt securities classified as held-to-maturity are comprised of CLO III junior subordinated notes and are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company had

$13.3

 million and

zero

CLO debt securities classified as held-to-maturity securities as of

June 30, 2019

and

December 31, 2018,

respectively. Interest on CLO debt securities are recognized in interest income on an accrual basis using the effective yield method. Realized gains and losses on the sale of debt securities are determined using the specific identification method and recognized in current period earnings in revenues from principal transactions.

The Company evaluates the available-for-sale and held-to-maturity investments in debt securities for other than temporary impairment ("OTTI") quarterly. Impairment would be recorded if the net present value of the cash flows of the investment is below amortized cost and the Company does

not

expect to recover the amortized cost basis before the security is expected to be sold or the security matures, whichever comes first. Should the Company determine that there is an OTTI, the amount of the impairment is bifurcated between losses related to credit losses, which is recognized in revenues from principal transactions, and all other factors, which is recognized in OCI. The Company recorded

no

OTTI on CLO debt securities for either of the

three

or

six

months ended

June 30, 2019

and

2018.

XML

Note 1 - Organization and Description of Business (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Deconsolidation [Table Text Block]

Cash received:	$	7,942
Retained interest, at fair value (1)		74,989
Non-controlling interest, at carrying value		12,842
Total of consideration received, retained interest, and non-controlling interest	$	95,773
Less:
Net assets of deconsolidated subsidiaries, at carrying value (2)		92,581
Gain on deconsolidation		3,192
Gain on remeasurement of CLO IV and CLO V senior subordinated notes		328
Total gain on deconsolidation	$	3,520

XML

Note 4 - Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Fair Value, by Balance Sheet Grouping [Table Text Block]

	June 30, 2019
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	52,901	$	52,901	$	-	$	-	$	52,901
Restricted cash and deposits		1,221		1,221		-		-		1,221
Marketable securities owned		81,499		16,252		-		64,157		80,409
Other investments		4,307		-		203		4,104		4,307
Other investments, measured at net asset value (1)		9,702		-		-		-		-
Loans held for investment, net of allowance for loan losses		5,292		-		884		4,423		5,307
Total assets:	$	154,922	$	70,374	$	1,087	$	72,684	$	144,145
Liabilities:
Marketable securities sold, but not yet purchased	$	2,724	$	2,724	$	-	$	-	$	2,724
Notes payable		15,812		-		14,983		829		15,812
Bond payable		83,706		-		87,223		-		87,223
Total liabilities:	$	102,242	$	2,724	$	102,206	$	829	$	105,759

	December 31, 2018
(In thousands)	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	70,927	$	70,927	$	-	$	-	$	70,927
Restricted cash and deposits		61,881		61,881		-		-		61,881
Marketable securities owned		18,874		18,874		-		-		18,874
Other investments		490		-		490		-		490
Other investments, measured at net asset value (1)		9,423		-		-		-		-
Loans held for investment, net of allowance for loan losses		29,608		-		26,188		2,576		28,764
Loans collateralizing asset-backed securities issued, net of allowance for loan losses		1,161,463		-		1,125,310		1,173		1,126,483
Total assets:	$	1,352,666	$	151,682	$	1,151,988	$	3,749	$	1,307,419
Liabilities:
Marketable securities sold, but not yet purchased	$	4,626	$	4,626	$	-	$	-	$	4,626
Notes payable		829		-		-		829		829
Asset-backed securities issued, net of debt issuance costs		1,112,342		-		1,091,677		-		1,091,677
Bond payable		83,497		-		78,642		-		78,642
CLO VI warehouse credit facility		22,500		-		22,500		-		22,500
Total liabilities:	$	1,223,794	$	4,626	$	1,192,819	$	829	$	1,198,274

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

(In thousands)			June 30, 2019
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	68,151	$	16,252	$	-	$	51,899	$	68,151
Other investments:
Equity investments		4,104		-		-		4,104		4,104
Investments in hedge funds managed by the Company		203		-		203		-		203
Investments in other funds managed by the Company (1)		5,245		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		4,457		-		-		-		-
Total other investments		14,009		-		203		4,104		4,307
Total assets:	$	82,160	$	16,252	$	203	$	56,003	$	72,458
Marketable securities sold, but not yet purchased		2,724		2,724		-		-		2,724
Total liabilities:	$	2,724	$	2,724	$	-	$	-	$	2,724

(In thousands)			December 31, 2018
	Carrying Value		Level 1		Level 2		Level 3		Total
Marketable securities owned	$	18,874	$	18,874	$	-	$	-	$	18,874
Other investments:
Investments in hedge funds managed by the Company		490		-		490		-		490
Investments in other funds managed by the Company (1)		5,503		-		-		-		-
Limited partnership in investments in private equity/ real estate funds (1)		3,920		-		-		-		-
Total other investments		9,913		-		490		-		490
Total assets:	$	28,787	$	18,874	$	490	$	-	$	19,364
Marketable securities sold, but not yet purchased		4,626		4,626		-		-		4,626
Total liabilities:	$	4,626	$	4,626	$	-	$	-	$	4,626

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

(In thousands)	CLO junior subordinated notes			CLO senior subordinated notes			Equity Investment		Total
Balance as of December 31, 2018	$	-		$	-		$	57	$	57
Fair value at recognition date		54,279			9,289			3,568		67,136
Purchases		-			-			11		11
Accrued interest		294			34			-		328
Unrealized losses on investments, recognized in OCI		(1,055	)		-			-		(1,055	)
Balance as of March 31, 2019	$	53,518		$	9,323		$	3,636	$	66,477
Accrued interest		1,969			69			-		2,038
Purchases		-			-			171		171
Investment distributions		(1,170	)		(883	)		-		(2,053	)
Unrealized losses on investments, recognized in OCI		(2,418	)		-					(2,418	)
Unrealized gains on investments, recognized in earnings		-			-			297		297
Realized losses on sales, recognized in earnings		-			(112	)		-		(112	)
Sales		-			(8,397	)		-		(8,397	)
Balance as of June 30, 2019	$	51,899		$	-		$	4,104	$	56,003

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

(In thousands)		Significant Unobservable Inputs Range (Weighted-average)						Fair value
	Valuation Technique	Description	June 30, 2019			December 31, 2018		June 30, 2019		December 31, 2018
CLO debt security	Discounted cash flows	Risk adjusted discounting factor		15.0	%		N/A	$	64,157	$	-
		Default rate		0.0 - 2.0% (1.9	%)		N/A
		Severity rate		25.0	%		N/A
		Prepay rate		25 CPR			N/A
		Collateral liquidation price		99.0	%		N/A
Equity investments	Discounted cash flows	Credit factor		20.0	%		N/A	$	3,755	$	-
		Risk adjusted discounting factor		17.6	%		N/A
	Market	EBITDA Multiple	7.0x				N/A	$	349	$	57

				Fair Value at				Unfunded Commitments
Dollars in thousands	Redemption Frequency	Redemption Notice Period		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Limited partner investments in private equity/ real estate funds	Nonredeemable		N/A	$	4,457	$	3,920	$	4,833	$	68
Investment in other funds managed by the Company	Nonredeemable		N/A	$	5,245	$	5,503	$	1,776	$	1,945

XML

Note 5 - Investment Securities (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Debt Securities, Available-for-sale [Table Text Block]

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Total OTTI in OCI		Number of positions
CLO IV junior subordinated notes	$	28,280	$	-	$	(2,711	)	$	25,569	$	-		1
CLO V junior subordinated notes		27,092		-		(762	)		26,330		-		1
Total	$	55,372	$	-	$	(3,473	)	$	51,899	$	-

Debt Securities, Held-to-maturity [Table Text Block]

(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Number of positions
CLO III subordinated notes	$	13,348	$	-	$	(1,090	)	$	12,258		1
Total	$	13,348	$	-	$	(1,090	)	$	12,258

Investments Classified by Contractual Maturity Date [Table Text Block]

(In thousands)	Available-for-sale				Held-to-maturity
	Amortized cost		Fair value		Amortized cost		Fair value
5-10 years	$	28,280		25,569		13,348		12,258
10+ years		27,092		26,330		-		-
Total	$	55,372	$	51,899	$	13,348	$	12,258

Debt Securities, Continuous Unrealized Loss Position [Table Text Block]

(In thousands)	Less than 12 months					Greater than 12 months				Total
	Fair value		Gross unrealized loss			Fair value		Gross unrealized loss		Fair value		Gross unrealized loss
CLO III subordinated notes	$	12,258	$	(1,090	)	$	-	$	-	$	12,258	$	(1,090	)
CLO IV junior subordinated notes		25,569		(2,711	)		-		-		25,569		(2,711	)
CLO V junior subordinated notes		26,330		(762	)		-		-		26,330		(762	)
Total	$	64,157	$	(4,563	)	$	-	$	-	$	64,157	$	(4,563	)

XML

Note 6 - Loans (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Financing Receivable, Allowance for Credit Loss [Table Text Block]

(In thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-Impaired		Impaired			Non-Impaired			Impaired			Non-Impaired			Impaired			Non-Impaired
Balance, at beginning of period	$	-	$	-	$	(1,209	)	$	(6,492	)	$	(836	)	$	(9,751	)	$	(391	)	$	(6,533	)
Provision for loan losses:
Specific reserve		-		-		-			-			-			-			(953	)		-
General reserve		-		-		-			(369	)		-			-			-			(328	)
Charge off		-		-		1,099			-			181			-			1,234			-
Derecognition due to deconsolidation		-		-		-			-			655			9,751			-			-
Balance, at end of period	$	-	$	-	$	(110	)	$	(6,861	)	$	-		$	-		$	(110	)	$	(6,861	)

Impaired Financing Receivables [Table Text Block]

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	1,813	$	1,951	$	838	$	1,817	$	119
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	1,813	$	1,951	$	838	$	1,817	$	119

Financing Receivable Credit Quality Indicators [Table Text Block]

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	7,300
Ba1 - Ba3		-		247,686
B1 - B3		-		856,204
Caa1 - Caa3		-		59,046
Ca		-		1,813
Total:	$	-	$	1,172,049
Internal rating: (1)
2	$	-	$	1,018,261
3		-		132,169
4		-		19,806
5		-		1,813
Total:	$	-	$	1,172,049
Performance:
Performing	$	-	$	1,170,236
Non-Performing		-		1,813
Total:	$	-	$	1,172,049

Loans Held for Investment [Member]

Notes Tables

Financing Receivable, Allowance for Credit Loss [Table Text Block]

(in thousands)	Three Months Ended June 30,										Six Months Ended June 30,
	2019				2018						2019						2018
	Impaired		Non-impaired		Impaired			Non-impaired			Impaired			Non-impaired			Impaired			Non-impaired
Balance, at beginning of the period	$	-	$	-	$	(205	)	$	(858	)	$	(218	)	$	(181	)	$	(2,279	)	$	(494	)
Provision for loan losses
Specific		-		-		-			-			-			-			(205	)		-
General		-		-		-			(914	)		-			-			-			(1,278	)
Charge off		-		-		205			26			218			-			2,484			26
Derecognition due to deconsolidation		-		-		-			-			-			181			-			-
Balance, at end of the period	$	-	$	-	$	-		$	(1,746	)	$	-		$	-		$	-		$	(1,746	)

Impaired Financing Receivables [Table Text Block]

	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018
Impaired loans with an allowance recorded	$	462	$	484	$	219	$	462	$	34
Impaired loans with no related allowance recorded		-		-		-		-		-
Total impaired loans	$	462	$	484	$	219	$	462	$	34

Financing Receivable Credit Quality Indicators [Table Text Block]

(In thousands)	Cash Flow Loans
	June 30,		December 31,
	2019		2018
Moody's rating:
Baa1 - Baa3	$	-	$	-
Ba1 - Ba3		-		7,459
B1 - B3		906		18,342
Caa1 - Caa3		-		419
Ca		-		463
Not Rated		4,386		3,326
Total:	$	5,292	$	30,009
Internal rating: (1)
2	$	-	$	26,208
3		-		909
4		-		-
5		-		462
Not rated		5,292		2,430
Total:	$	5,292	$	30,009
Performance:
Performing	$	5,292	$	29,547
Non-performing		-		462
Total:	$	5,292	$	30,009

XML

Note 7 - Debt (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Maturities of Long-term Debt [Table Text Block]

(In thousands)
2019	$	-
2020		-
2021		-
2022		-
2023		36,000
Thereafter		50,000
Total	$	86,000

Senior Notes [Member]

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

(In thousands)	June 30, 2019			December 31, 2018
8.00% Senior Notes due 2023	$	36,000		$	36,000
7.25% Senior Notes due 2027		50,000			50,000
Total outstanding principal	$	86,000		$	86,000
Less: Debt issuance costs		(2,219	)		(2,428	)
Less: Consolidation elimination		(75	)		(75	)
Total bond payable, net	$	83,706		$	83,497

Schedule of Debt [Table Text Block]

(In thousands)	Outstanding Balance
	June 30, 2019		December 31, 2018
$100 million, CLO VI warehouse credit facility through October 11, 2021	$	-	$	22,500
$25 million, JMP Holding credit agreement through December 31, 2020		14,983		-
$20 million, JMP Securities revolving line of credit through June 6, 2020		-		-
Note payable		829		829
Total note payable, lines of credit, and credit facilities	$	15,812	$	23,329

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Note 8 - Asset-backed Securities Issued (Tables)

6 Months Ended

Jun. 30, 2019

CLO III, CLO IV, and CLOV [Member]

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

(In thousands)	As of December 31, 2018
	Outstanding Principal Balance			Interest Rate Spread to LIBOR			Weighted Average Remaining Maturity (years)
Class A Senior Secured Floating Rate Notes	$	769,750			0.85%-1.37	%		10.04
Class B Senior Secured Floating Rate Notes		143,700			1.30%-1.90	%		10.04
Class C Senior Secured Deferrable Floating Rate Notes		71,500			1.80%-2.65	%		9.99
Class D Senior Secured Deferrable Floating Rate Notes		68,350			2.60%-4.15	%		10.01
Class E Senior Secured Deferrable Floating Rate Notes		60,800			5.70%-6.80	%		10.03
Total secured notes sold to investors	$	1,114,100
Senior Subordinated Notes		7,221			6.90	%		11.00
Less: Debt issuance costs		(8,979	)
Total asset-backed securities issued	$	1,112,342

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Note 9 - Leases (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Lease, Cost [Table Text Block]

	June 30, 2019
Weighted-average remaining lease term
Operating leases		5.79
Weighted-average discount rate
Operating leases		6.12	%

	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities	$	2,946
Operating leases	$	2,946

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

(In thousands)	Minimum Future Lease Payments
Year Ending December 31,
2019	$	2,153
2020		5,629
2021		5,693
2022		5,649
2023		5,643
Thereafter		6,562
Total minimum future lease payments		31,329
Amounts representing interest		(4,847	)
Present value of net future minimum lease payments	$	26,482

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Note 11 - Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

(In thousands)	Before Tax			Tax Effect		Net of Tax
Beginning, January 1, 2019	$	-		$	-	$	-
Net unrealized losses during the period		(1,055	)		273		(782	)
Balance as of March 31, 2019	$	(1,055	)	$	273	$	(782	)
Net unrealized losses during the period		(2,418	)		631		(1,787	)
Balance as of June 30, 2019	$	(3,473	)	$	904	$	(2,569	)

XML

Note 12 - Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Six Months Ended
	June 30, 2019
	Shares Subject		Weighted Average
	to Option		Exercise Price
Balance, beginning of year		1,300,000	$	6.85
Balance, end of period		1,300,000	$	6.85
Options exercisable at end of period		1,300,000	$	6.85

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]

June 30, 2019

Options Outstanding

Options Vested and Exercisable

Weighted

Weighted

Average

Weighted

Average

Weighted

Range of

Remaining

Average

Aggregate

Remaining

Average

Aggregate

Exercise

Number

Contractual

Exercise

Intrinsic

Number

Contractual

Exercise

Intrinsic

Prices

Outstanding

Life in Years

Price

Value

Exercisable

Life in Years

Price

Value

$6.79 - $7.33

1,300,000

0.50

$

6.85

$

-

1,300,000

0.50

$

6.85

$

-

Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block]

	Six Months Ended
	June 30, 2019
	Restricted			Weighted Average
	Share Units			Grant Date Fair Value
Balance, beginning of year		297,639		$	4.79
Granted		465,519			4.23
Vested		(162,048	)		4.55
Balance, end of period		601,110		$	4.42

Share-based Payment Arrangement, Stock Appreciation Right, Activity [Table Text Block]

	Six Months Ended
	June 30, 2019
	Share Appreciation		Weighted Average
	Rights		Exercise Price
Balance, beginning of year		2,485,000	$	7.33
Balance, end of period		2,485,000	$	7.33

Stock Appreciation Rights Outstanding Detail [Table Text Block]

		June 30, 2019
		SARs Outstanding
				Weighted
				Average		Weighted
				Remaining		Average		Aggregate
Exercise		Number		Contractual		Exercise		Intrinsic
Price		Outstanding		Life in Years		Price		Value
$	7.33		2,485,000		0.50	$	7.33	$	-

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Note 13 - Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

(In thousands, except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019		2018
Numerator:
Net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957	$	(2,271	)
Denominator:
Basic weighted average shares outstanding		20,772			21,537			21,028		21,601
Effect of potential dilutive securities:
Restricted share units		-			-			123		-
Diluted weighted average shares outstanding		20,772			21,537			21,151		21,601
Net income (loss) per share
Basic	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)
Diluted	$	(0.05	)	$	(0.09	)	$	0.19	$	(0.11	)

XML

Note 14 - ASC 606 Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Disaggregation of Revenue [Table Text Block]

(in thousands)	Three Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	12,328		$	-	$	-	$	-	$	-	$	-		$	12,328
Strategic advisory and private placements		5,408			-		-		-		-		-			5,408
Total investment banking revenues		17,736			-		-		-		-		-			17,736
Commissions		3,063			-		-		-		-		-			3,063
Research payments		1,655			-		-		-		-		-			1,655
Net trading losses		(61	)		-		-		-		-		-			(61	)
Total brokerage revenues		4,657			-		-		-		-		-			4,657
Base management fees		-			1,533		-		1,533		-		(25	)		1,508
Incentive management fees		-			846		-		846		-		-			846
Total asset management fees		-			2,379		-		2,379		-		(25	)		2,354
Total revenues from contracts with customers	$	22,393		$	2,379	$	-	$	2,379	$	-	$	(25	)	$	24,747

(in thousands)	Three Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	24,050		$	-	$	-	$	-	$	-	$	-		$	24,050
Strategic advisory and private placements		4,512			-		-		-		-		-			4,512
Total investment banking revenues		28,562			-		-		-		-		-			28,562
Commissions		4,095			-		-		-		-		-			4,095
Research payments		1,650			-		-		-		-		-			1,650
Net trading losses		(298	)		-		-		-		-		-			(298	)
Total brokerage revenues		5,447			-		-		-		-		-			5,447
Base management fees		-			4,314		-		4,314		-		(1,051	)		3,263
Incentive management fees		-			344		2,017		2,361		-		(246	)		2,115
Total asset management fees		-			4,658		2,017		6,675		-		(1,297	)		5,378
Total revenues from contracts with customers	$	34,009		$	4,658	$	2,017	$	6,675	$	-	$	(1,297	)	$	39,387

(in thousands)	Six Months Ended June 30, 2019
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	19,117		$	-	$	-	$	-	$	-	$	-		$	19,117
Strategic advisory and private placements		10,498			-		-		-		-		-			10,498
Total investment banking revenues		29,615			-		-		-		-		-			29,615
Commissions		6,362			-		-		-		-		-			6,362
Research payments		2,864			-		-		-		-		-			2,864
Net trading losses		(34	)		-		-		-		-		-			(34	)
Total brokerage revenues		9,192			-		-		-		-		-			9,192
Base management fees		-			4,237		-		4,237		-		(1,032	)		3,205
Incentive management fees		-			588		264		852		-		-			852
Total asset management fees		-			4,825		264		5,089		-		(1,032	)		4,057
Total revenues from contracts with customers	$	38,807		$	4,825	$	264	$	5,089	$	-	$	(1,032	)	$	42,864

(in thousands)	Six Months Ended June 30, 2018
	Broker -Dealer			Asset Management				Total Asset Management		Corporate Costs		Eliminations			Total
				Asset Management Fee Income		Investment Income
Total revenues from contracts with customers
Equity and debt origination	$	35,912		$	-	$	-	$	-	$	-	$	-		$	35,912
Strategic advisory and private placements		13,312			-		-		-		-		-			13,312
Total investment banking revenues		49,224			-		-		-		-		-			49,224
Commissions		7,986			-		-		-		-		-			7,986
Research payments		2,635			-		-		-		-		-			2,635
Net trading losses		(510	)		-		-		-		-		-			(510	)
Total brokerage revenues		10,111			-		-		-		-		-			10,111
Base management fees		-			8,321		-		8,321		-		(1,998	)		6,323
Incentive management fees		-			423		5,303		5,726		-		(246	)		5,480
Total asset management fees		-			8,744		5,303		14,047		-		(2,244	)		11,803
Total revenues from contracts with customers	$	59,335		$	8,744	$	5,303	$	14,047	$	-	$	(2,244	)	$	71,138

XML

Note 23 - Business Segments (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Broker-Dealer
Non-interest revenues	$	22,399		$	34,015		$	38,819		$	59,344
Total net revenues after provision for loan losses	$	22,399		$	34,015		$	38,819		$	59,344
Non-interest expenses		23,458			30,410			41,358			53,326
Segment operating pre-tax net income (loss)	$	(1,059	)	$	3,605		$	(2,539	)	$	6,018
Segment assets	$	53,622		$	70,349		$	53,622		$	70,349
Asset Management Fee Income
Non-interest revenues	$	2,536		$	4,572		$	4,897		$	8,561
Total net revenues after provision for loan losses	$	2,536		$	4,572		$	4,897		$	8,561
Non-interest expenses		2,883			4,756			5,973			9,776
Segment operating pre-tax net loss	$	(347	)	$	(184	)	$	(1,076	)	$	(1,215	)
Segment assets	$	11,424		$	20,529		$	11,424		$	20,529
Investment Income
Non-interest revenues	$	2,125		$	3,556		$	7,875		$	5,724
Net interest income		816			2,927			4,139			5,054
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(42	)
Provision for loan losses		-			(37	)		-			(930	)
Total net revenues after provision for loan losses	$	2,941		$	6,404		$	12,014		$	9,806
Non-interest expenses		495			3,372			3,044			7,561
Segment operating pre-tax net income	$	2,446		$	3,032		$	8,970		$	2,245
Segment assets	$	121,145			1,152,160		$	121,145			1,152,160
Corporate Costs
Non-interest expenses	$	1,982		$	2,573		$	4,042		$	4,831
Segment operating pre-tax net loss	$	(1,982	)	$	(2,573	)	$	(4,042	)	$	(4,831	)
Segment assets	$	276,693		$	282,699		$	276,693		$	282,699
Eliminations
Non-interest revenues	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Total net revenues after provision for loan losses	$	(34	)	$	(1,168	)	$	(1,048	)	$	(2,147	)
Non-interest expenses		(34	)		(1,168	)		(1,048	)		(2,149	)
Segment operating pre-tax net income	$	-		$	-		$	-		$	2
Segment assets	$	(226,911	)	$	(274,705	)	$	(226,911	)	$	(274,705	)
Consolidating adjustments and reconciling items
Non-interest revenues	$	209	(a)	$	576	(a)	$	341	(a)	$	(1,637	)(a)
Net interest income		17	(b)		1,108	(b)		212	(b)		1,989	(b)
Loss on repurchase or early retirement of debt		-			-			-			(2,626	)
Provision for loan losses		-			(1,243	)		-			(1,815	)
Total net revenues after provision for loan losses	$	226		$	441		$	553		$	(4,089	)
Non-interest expenses		996	(c)		635	(c)		2,541	(c)		1,759	(c)
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Segment operating pre-tax net loss	$	(687	)	$	(973	)	$	(1,975	)	$	(5,163	)
Total Segments
Non-interest revenues		27,235			41,551			50,884			69,845
Net interest income		833			4,035			4,351			7,043
Loss on repurchase, reissuance or early retirement of debt		-			(42	)		-			(2,668	)
Provision for loan losses		-			(1,280	)		-			(2,745	)
Total net revenues after provision for loan losses	$	28,068		$	44,264		$	55,235		$	71,475
Non-interest expenses		29,780			40,578			55,910			75,104
Non-controlling interest (expense) income		(83	)		779			(13	)		(685	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Total assets	$	235,973		$	1,251,031		$	235,973		$	1,251,031

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

(In thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Operating net income (loss)	$	(697	)	$	3,384		$	972		$	1,753
Addback (subtract) of segment income tax expense (benefit)		(245	)		496			341			466
Total segments adjusted operating pre-tax net income (loss)	$	(942	)	$	3,880		$	1,313		$	2,219
Subtract (addback)
Share-based awards and deferred compensation		587			69			1,431			213
General loan loss provision – CLOs, CLO warehouse		-			1,164			-			1,493
Early debt retirement/reissuance		-			-			-			1,318
CLO refinancing costs		-			(10	)		-			54
Amortization of intangible asset – CLO III		-			69			277			138
Unrealized (gain) loss on real estate fund investment – depreciation and amortization		221			(24	)		778			1,604
Unrealized mark-to-market (gain) loss on strategic equity investments		(121	)		(295	)		(511	)		343
Total consolidation adjustments and reconciling items		687			973			1,975			5,163
Consolidated pre-tax net income (loss) attributable to JMP Group LLC	$	(1,629	)	$	2,907		$	(662	)	$	(2,944	)
Income tax expense (benefit)		(517	)		4,895			(4,619	)		(673	)
Consolidated net income (loss) attributable to JMP Group LLC	$	(1,112	)	$	(1,988	)	$	3,957		$	(2,271	)

XML

Note 24 - Nonconsolidated Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Variable Interest Entities [Table Text Block]

(In thousands)	As of
	June 30, 2019								December 31, 2018
	Financial Statement								Financial Statement
	Carrying Amount				Maximum				Carrying Amount				Maximum
	Assets		Liabilities		Exposure to Loss		VIE Assets		Assets		Liabilities		Exposure to Loss		VIE Assets
CLOs	$	78,348	$	-	$	78,348	$	1,363,427	$	-	$	-	$	-	$	-
Fund investments		5,215		-		6,645		192,378		5,083		-		7,028		204,646
Other investments		4,194		-		4,194		1,206,934		933		-		933		1,235,146
Total	$	87,757	$	-	$	89,187	$	2,762,739	$	6,016	$	-	$	7,961	$	1,439,792

XML

Note 25 - Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Condensed Balance Sheet [Table Text Block]

	As of June 30, 2019
	Parent Companies and Guarantors		Subsidiary Issuer		Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Assets
Cash and cash equivalents	$	8,808	$	7,095	$	36,998		$	-		$	52,901
Restricted cash and deposits		-		1,221		-			-			1,221
Investment banking fees receivable, net of allowance for doubtful accounts		-		-		6,169			-			6,169
Marketable securities owned, at fair value		38,991		694		41,888			(74	)		81,499
Other investments		3,870		2,255		25,987			-			32,112
Loans held for investment, net of allowance for loan losses		1,958		906		2,428			-			5,292
Interest receivable		40		16		749			(419	)		386
Fixed assets, net		-		-		2,518			-			2,518
Operating lease right-of-use asset		-		21,096		-			-			21,096
Other assets		119		131,030		46,206			(144,576	)		32,779
Investment in subsidiaries		264,858		76,166		-			(341,024	)		-
Total assets	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973
Liabilities and Equity
Liabilities:
Marketable securities sold, but not yet purchased, at fair value	$	-	$	-	$	2,724		$	-		$	2,724
Accrued compensation		685		1,001		11,986			-			13,672
Interest payable		-		1,071		501			(419	)		1,153
Notes payable		127,603		-		32,746			(144,537	)		15,812
Bond payable, net of debt issuance costs		-		83,780		-			(74	)		83,706
Operating lease right-of-use liability		-		26,482		-			-			26,482
Other liabilities		5,799		236		11,150			67			17,252
Total liabilities	$	134,087	$	112,570	$	59,107		$	(144,963	)	$	160,801
Total shareholders' equity		184,557		127,909		104,317			(341,342	)		75,441
Nonredeemable Non-controlling Interest	$	-	$	-	$	(481	)	$	212		$	(269	)
Total equity	$	184,557	$	127,909	$	103,836		$	(341,130	)	$	75,172
Total liabilities and equity	$	318,644	$	240,479	$	162,943		$	(486,093	)	$	235,973

	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

Condensed Income Statement [Table Text Block]

	For the Three Months Ended June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	17,736		$	-		$	17,736
Brokerage		-			-			4,657			-			4,657
Asset management fees		-			-			2,388			(34	)		2,354
Principal transactions		(26	)		421			1,028			-			1,423
Loss on sale, payoff and mark-to-market of loans		(21	)		-			-			-			(21	)
Net dividend income		16			28			249			-			293
Other income		206			-			587			-			793
Equity earnings (losses) of subsidiaries		865			(522	)		-			(343	)		-
Non-interest revenues (losses)		1,040			(73	)		26,645			(377	)		27,235
Interest income		1,880			1,113			1,717			(1,938	)		2,772
Interest expense		(1,056	)		(2,068	)		(752	)		1,937			(1,939	)
Net interest income (expense)		824			(955	)		965			(1	)		833
Total net revenues (losses) after provision for loan losses		1,864			(1,028	)		27,610			(378	)		28,068
Non-interest expenses
Compensation and benefits		445			1,048			18,452			-			19,945
Administration		155			109			2,518			(34	)		2,748
Brokerage, clearing and exchange fees		-			-			733			-			733
Travel and business development		37			12			1,298			-			1,347
Managed deal expense		-			-			1,334			-			1,334
Communications and technology		-			2			1,125			-			1,127
Occupancy		-			-			1,409			-			1,409
Professional fees		515			60			246			-			821
Depreciation		-			-			311			-			311
Other		-			-			5			-			5
Total non-interest expenses		1,152			1,231			27,431			(34	)		29,780
Net income (loss) before income tax expense		712			(2,259	)		179			(344	)		(1,712	)
Income tax benefit		(58	)		(344	)		(115	)		-			(517	)
Net income (loss)		770			(1,915	)		294			(344	)		(1,195	)
Less: Net loss attributable to nonredeemable non-controlling interest		-			-			(83	)		-			(83	)
Net income (loss) attributable to JMP Group LLC	$	770		$	(1,915	)	$	377		$	(344	)	$	(1,112	)

	For the Three Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	28,562		$	-		$	28,562
Brokerage		-			-			5,447			-			5,447
Asset management fees		-			-			5,420			(42	)		5,378
Principal transactions		533			(126	)		1,277			-			1,684
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(135	)		-			(150	)
Net dividend income		280			11			28			-			319
Other income		-			-			311			-			311
Equity earnings of subsidiaries		3,577			2,719			-			(6,296	)		-
Non-interest revenues		4,375			2,604			40,910			(6,338	)		41,551
Interest income		667			1,141			15,921			(2,060	)		15,669
Interest expense		(1,158	)		(2,299	)		(10,237	)		2,060			(11,634	)
Net interest income (expense)		(491	)		(1,158	)		5,684			-			4,035
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			-			-			(42	)
Provision for loan losses		-			-			(1,280	)		-			(1,280	)
Total net revenues after provision for loan losses		3,842			1,446			45,314			(6,338	)		44,264
Non-interest expenses
Compensation and benefits		621			1,235			27,282			-			29,138
Administration		171			101			2,481			(42	)		2,711
Brokerage, clearing and exchange fees		-			-			788			-			788
Travel and business development		(31	)		4			1,229			-			1,202
Managed deal expense		-			-			2,348			-			2,348
Communications and technology		1			2			1,044			-			1,047
Occupancy		-			-			1,143			-			1,143
Professional fees		590			67			481			-			1,138
Depreciation		-			-			287			-			287
Other		69			-			707			-			776
Total non-interest expenses		1,421			1,409			37,790			(42	)		40,578
Net income (loss) before income tax expense		2,421			37			7,524			(6,296	)		3,686
Income tax expense		-			3,734			1,161			-			4,895
Net income (loss)		2,421			(3,697	)		6,363			(6,296	)		(1,209	)
Less: Net income (loss) attributable to nonredeemable non-controlling interest		815			-			(36	)		-			779
Net income (loss) attributable to JMP Group LLC	$	1,606		$	(3,697	)	$	6,399		$	(6,296	)	$	(1,988	)

	For the Six Months Ended June 30, 2019
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	29,615		$	-		$	29,615
Brokerage		-			-			9,192			-			9,192
Asset management fees		-			-			4,105			(48	)		4,057
Principal transactions		391			483			5,837			-			6,711
Loss on sale, payoff and mark-to-market of loans		(21	)		-			(17	)		-			(38	)
Net dividend income		118			40			431			-			589
Other income		235			-			523			-			758
Equity earnings (losses) of subsidiaries		11,757			(1,258	)		-			(10,499	)		-
Non-interest revenues		12,480			(735	)		49,686			(10,547	)		50,884
Interest income		2,830			2,203			16,143			(4,113	)		17,063
Interest expense		(2,112	)		(4,134	)		(10,578	)		4,112			(12,712	)
Net interest income (expense)		718			(1,931	)		5,565			(1	)		4,351
Total net revenues (losses) after provision for loan losses		13,198			(2,666	)		55,251			(10,548	)		55,235
Non-interest expenses
Compensation and benefits		1,026			2,092			34,049			-			37,167
Administration		302			219			4,204			(48	)		4,677
Brokerage, clearing and exchange fees		-			-			1,434			-			1,434
Travel and business development		73			20			2,275			-			2,368
Managed deal expense		-			-			1,867			-			1,867
Communications and technology		2			1			2,177			-			2,180
Occupancy		-			-			2,832			-			2,832
Professional fees		1,085			124			1,068			-			2,277
Depreciation		-			-			608			-			608
Other		277			-			223			-			500
Total non-interest expenses		2,765			2,456			50,737			(48	)		55,910
Net income (loss) before income tax expense		10,433			(5,122	)		4,514			(10,500	)		(675	)
Income tax expense (benefit)		255			(5,243	)		369			-			(4,619	)
Net income (loss)		10,178			121			4,145			(10,500	)		3,944
Less: Net income (loss) attributable to nonredeemable non-controlling interest		167			-			(180	)		-			(13	)
Net income (loss) attributable to JMP Group LLC	$	10,011		$	121		$	4,325		$	(10,500	)	$	3,957

	For the Six Months Ended June 30, 2018
	Parent Companies and Guarantors			Subsidiary Issuer			Non-Guarantor Subsidiaries			Eliminations			Consolidated JMP Group LLC
Revenues
Investment banking	$	-		$	-		$	49,224		$	-		$	49,224
Brokerage		-			-			10,111			-			10,111
Asset management fees		-			-			12,025			(222	)		11,803
Principal transactions		(2,646	)		(144	)		854			-			(1,936	)
Loss on sale, payoff and mark-to-market of loans		(15	)		-			(317	)		-			(332	)
Net dividend income		551			14			50			-			615
Other income		-			-			360			-			360
Equity earnings of subsidiaries		7,100			2,791			-			(9,891	)		-
Non-interest revenues		4,990			2,661			72,307			(10,113	)		69,845
Interest income		1,331			2,283			28,895			(4,130	)		28,379
Interest expense		(2,302	)		(4,592	)		(18,571	)		4,129			(21,336	)
Net interest income (expense)		(971	)		(2,309	)		10,324			(1	)		7,043
Loss on repurchase, reissuance or early retirement of debt		(42	)		-			(2,626	)		-			(2,668	)
Reversal (provision) for loan losses		15			-			(2,760	)		-			(2,745	)
Total net revenues after provision for loan losses		3,992			352			77,245			(10,114	)		71,475
Non-interest expenses
Compensation and benefits		1,081			2,076			50,242			-			53,399
Administration		326			238			4,602			(222	)		4,944
Brokerage, clearing and exchange fees		-			-			1,565			-			1,565
Travel and business development		35			18			2,103			-			2,156
Managed deal expense		-			-			3,914			-			3,914
Communications and technology		1			5			2,103			-			2,109
Occupancy		-			-			2,260			-			2,260
Professional fees		1,261			152			1,630			-			3,043
Depreciation		-			-			551			-			551
Other		138			-			1,025			-			1,163
Total non-interest expenses		2,842			2,489			69,995			(222	)		75,104
Net income (loss) before income tax expense		1,150			(2,137	)		7,250			(9,892	)		(3,629	)
Income tax expense (benefit)		-			(2,255	)		1,582			-			(673	)
Net income (loss)		1,150			118			5,668			(9,892	)		(2,956	)
Less: Net loss attributable to nonredeemable non-controlling interest		(231	)		-			(454	)		-			(685	)
Net income (loss) attributable to JMP Group LLC	$	1,381		$	118		$	6,122		$	(9,892	)	$	(2,271	)

Condensed Cash Flow Statement [Table Text Block]

	For the Six Months Ended June 30, 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	$	12,953		$	(11,085	)	$	(22,507	)	$	(10,500	)	$	(31,139	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(904	)		-			(904	)
Purchases of other investments		(401	)		(363	)		(8,866	)		-			(9,630	)
Sales or distributions from other investments		1,840			329			9,073			(878	)		10,364
Funding of loans collateralizing asset-backed securities issued		-			-			(35,153	)		-			(35,153	)
Funding of loans held for investment		(1,131	)		(876	)		(23,580	)		-			(25,587	)
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		139			7			6,874			-			7,020
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries		-			-			(27,771	)		-			(27,771	)
Investment in subsidiary		10,301			1,261			-			(11,562	)		-
Net cash provided by (used in) investing activities	$	10,748		$	358		$	(56,521	)	$	(12,440	)	$	(57,855	)
Cash flows from financing activities:
Proceeds from drawdowns on line of credit		-			-			16,583			-			16,583
Proceeds from drawdowns on CLO warehouse facilities		-			-			7,750			-			7,750
Repayment of line of credit		-			-			(1,600	)		-			(1,600	)
Repayment of asset-backed securities issued		-			-			(1,679	)		878			(801	)
Distributions and distribution equivalents paid on common shares and RSUs		(1,913	)		-			-			-			(1,913	)
Purchases of common shares for treasury		(8,614	)		-			-			-			(8,614	)
Distributions to non-controlling interest shareholders		(913	)		-			-			-			(913	)
Employee taxes paid on shares withheld for tax-withholding purposes		(184	)		-			-			-			(184	)
Capital contributions of parent		(8,133	)		9,067			(22,996	)		22,062			-
Net cash provided by (used in) financing activities	$	(19,757	)	$	9,067		$	(1,942	)	$	22,940		$	10,308
Net increase (decrease) in cash and cash equivalents		3,944			(1,660	)		(80,970	)		-			(78,686	)
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	$	8,807		$	8,316		$	36,999		$	-		$	54,122

	For the Six Months Ended June 30, 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	$	23,243		$	(1,130	)	$	(26,374	)	$	(9,933	)	$	(14,194	)
Cash flows from investing activities:
Purchases of fixed assets		-			-			(580	)		-			(580	)
Purchases of other investments		(5,187	)		(430	)		(55	)		4,453			(1,219	)
Sales or distributions from other investments		13,161			116			2,306			(4,411	)		11,172
Funding of loans collateralizing asset-backed securities issued		-			-			(193,024	)		-			(193,024	)
Funding of loans held for investment		14			-			(225,365	)		-			(225,351	)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued		(15	)		-			172,430			-			172,415
Sale, payoff and principal receipts on loans held for investment		1,560			-			20,546			-			22,106
Investment in subsidiary		9,466			(3,914	)		-			(5,552	)		-
Net cash provided by (used in) investing activities		18,999		$	(4,228	)	$	(223,742	)	$	(5,510	)	$	(214,481	)
Cash flows from financing activities:
Proceeds from issuance of repurchase agreement		3,878			-			-			-			3,878
Repayment of repurchase agreement		(3,878	)		-			-			-			(3,878	)
Proceeds from drawdowns on line of credit		-			-			18,000			-			18,000
Proceeds from drawdowns of CLO warehouse facility		-			-			177,250			-			177,250
Proceeds from sale of note payable to affiliate		-			-			829			-			829
Payment of debt issuance costs		-			(142	)		(1,715	)		-			(1,857	)
Repayment of asset-backed securities issued		(4,453	)		-			(327,647	)		-			(332,100	)
Proceeds of issuance from asset-backed securities issued		-			-			327,605			-			327,605
Reissuance of asset-backed securities		4,411			-			42			-			4,453
Distributions and distribution equivalents paid on common shares and RSUs		(3,975	)		-			-			-			(3,975	)
Purchase of subsidiary shares from non-controlling interest holders		(656	)		-			656			-			-
Capital contributions of nonredeemable non-controlling interest holders		-			-			449			-			449
Purchases of common shares for treasury		(1,525	)		-			-			-			(1,525	)
Distributions to non-controlling interest shareholders		(540	)		-			(109	)		-			(649	)
Employee taxes paid on shares withheld for tax-withholding purposes		(31	)		-			-			-			(31	)
Capital contributions of parent		(46,348	)		5,587.00			25,318			15,443			-
Net cash provided by (used in) financing activities	$	(53,117	)	$	5,445		$	220,678		$	15,443		$	188,449
Net increase (decrease) in cash and cash equivalents		(10,875	)		87			(29,438	)		-			(40,226	)
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	$	2,757		$	6,377		$	87,961		$	-		$	97,095

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Note 1 - Organization and Description of Business (Details Textual) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended
	Mar. 19, 2019		May 31, 2019	Mar. 31, 2019	Jun. 30, 2019	Jan. 17, 2019	Dec. 31, 2018
Deconsolidation, Gain (Loss), Amount	$ 3,192
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	7,942
Investments, Fair Value Disclosure, Total	74,989	[1]			$ 14,009		$ 9,913
CLO III [Member]
Net Assets, Ending Balance	24,500
CLO IV [Member]
Net Assets, Ending Balance	30,200
CLO V [Member]
Net Assets, Ending Balance	25,800
CLO VI [Member]
Net Assets, Ending Balance	11,600
JMPCA [Member]
Net Assets, Ending Balance	500
Senior Subordinated Notes of CLO IV and CLO V [Member]
Debt Securities, Trading, Realized Gain (Loss), Total			$ (100)
CLO III [Member]
Investments, Fair Value Disclosure, Total	13,300
CLO IV [Member]
Investments, Fair Value Disclosure, Total	27,800
CLO V [Member]
Investments, Fair Value Disclosure, Total	26,500
CLO VI [Member]
Investments, Fair Value Disclosure, Total	3,800
JMPCA [Member]
Investments, Fair Value Disclosure, Total	$ 3,600
Medalist Partners LP [Member]
Percentage of Outstanding Preference Shares Sold	66.00%
Proceeds from Sale of Preference shares	$ 7,600
Gain (Loss) on Sale of Preference Shares	0
CLO III [Member]
Ownership Percentage of Junior Subordinated Notes						47.00%
Deconsolidation, Gain (Loss), Amount				$ 1,600
JMPCA [Member]
Deconsolidation, Gain (Loss), Amount	$ 3,400
Ownership Percentage	45.00%
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	$ 300
JMPCA [Member] | Medalist Partners LP [Member]
Ownership Interest, Sold	50.10%
JMPCA [Member] | Management Employees of JMPCA [Member]
Ownership Interest, Sold	4.90%
CLO's [Member]
Ownership Percentage	100.00%
CLO IV [Member]
Ownership Percentage of Junior Subordinated Notes					100.00%
Ownership Percentage of Senior Subordinated Notes	100.00%
CLO VI [Member]
Ownership Percentage of Junior Subordinated Notes					33.00%
CLO V [Member]
Ownership Percentage of Junior Subordinated Notes					100.00%
Ownership Percentage of Senior Subordinated Notes	25.00%
CLO IV, CLO V, and CLO VI [Member]
Deconsolidation, Gain (Loss), Amount				$ (1,800)

[1] The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively

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Note 1 - Organization and Description of Business - Deconsolidation of the CLO's and JMPCA (Details) - USD ($) $ in Thousands		Mar. 19, 2019		Jun. 30, 2019	Dec. 31, 2018
Cash received:		$ 7,942
Investments fair value		74,989	[1]	$ 14,009	$ 9,913
Non-controlling interest, at carrying value		12,842		$ (269)	$ 13,499
Total of consideration received, retained interest, and non-controlling interest		95,773
Gain on deconsolidation		3,192
Gain on remeasurement of CLO IV and CLO V senior subordinated notes		328
Total gain on deconsolidation		3,520
CLO's and JMPCA [Member]
Net assets of deconsolidated subsidiaries at carrying value	[2]	$ 92,581

[1] The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively

[2] The book value of the net assets of CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $24.5 million, $30.2 million, $25.8 million, $11.6 million, and $0.5 million, respectively

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Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale, Total		$ 51,899		$ 51,899
Debt Securities, Held-to-maturity, Total		13,348		13,348
Collateralized Loan Obligations [Member]
Debt Securities, Trading		0		0		$ 0
Debt Securities, Available-for-sale, Total		51,900		51,900		0
Debt Securities, Held-to-maturity, Total		13,300		13,300		$ 0
Other than Temporary Impairment Losses, Investments, Total		$ 0	$ 0	$ 0	$ 0
Senior Subordinated Notes of CLO IV and CLO V [Member]
Debt Securities, Trading, Realized Gain (Loss), Total	$ (100)

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Note 3 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 21,096
Operating Lease, Liability, Total	$ 26,482
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		$ 23,600
Operating Lease, Liability, Total		$ 29,300

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Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value, Ending Balance	$ 56,003	$ 66,477	$ 57
Marketable Securities, Total	81,499		18,874
Fair Value, Nonrecurring [Member]
Loans Receivable, Fair Value Disclosure	0		1,300
Marketable Securities, Total	13,300
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value, Ending Balance	$ 9,700		$ 9,400

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Note 4 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Marketable securities owned		$ 68,151	$ 18,874
Marketable securities sold, but not yet purchased		2,724	4,626
Reported Value Measurement [Member]
Cash and cash equivalents		52,901	70,927
Restricted cash and deposits		1,221	61,881
Marketable securities owned		81,499	18,874
Other investments		4,307	490
Other investments, measured at net asset value (1)	[1]	9,702	9,423
Loans held for investment, net of allowance for loan losses		5,292	29,608
Total assets:		154,922	1,352,666
Marketable securities sold, but not yet purchased		2,724	4,626
Notes payable		15,812	829
Bond payable		83,706	83,497
Total liabilities:		102,242	1,223,794
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,161,463
Asset-backed securities issued, net of debt issuance costs			1,112,342
CLO VI warehouse credit facility			22,500
Estimate of Fair Value Measurement [Member]
Cash and cash equivalents		52,901	70,927
Restricted cash and deposits		1,221	61,881
Marketable securities owned		80,409
Other investments		4,307	490
Other investments, measured at net asset value (1)	[1]
Loans held for investment, net of allowance for loan losses		5,307	28,764
Total assets:		144,145	1,307,419
Marketable securities sold, but not yet purchased		2,724	4,626
Notes payable		15,812	829
Bond payable		87,223	78,642
Total liabilities:		105,759	1,198,274
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,126,483
Asset-backed securities issued, net of debt issuance costs			1,091,677
CLO VI warehouse credit facility			22,500
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents		52,901	70,927
Restricted cash and deposits		1,221	61,881
Marketable securities owned		16,252	18,874
Other investments
Other investments, measured at net asset value (1)	[1]
Loans held for investment, net of allowance for loan losses
Total assets:		70,374	151,682
Marketable securities sold, but not yet purchased		2,724	4,626
Notes payable
Bond payable
Total liabilities:		2,724	4,626
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
Asset-backed securities issued, net of debt issuance costs
CLO VI warehouse credit facility
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents
Restricted cash and deposits
Marketable securities owned
Other investments		203	490
Other investments, measured at net asset value (1)	[1]
Loans held for investment, net of allowance for loan losses		884	26,188
Total assets:		1,087	1,151,988
Marketable securities sold, but not yet purchased
Notes payable		14,983
Bond payable		87,223	78,642
Total liabilities:		102,206	1,192,819
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,125,310
Asset-backed securities issued, net of debt issuance costs			1,091,677
CLO VI warehouse credit facility			22,500
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and cash equivalents
Restricted cash and deposits
Marketable securities owned		64,157
Other investments		4,104
Other investments, measured at net asset value (1)	[1]
Loans held for investment, net of allowance for loan losses		4,423	2,576
Total assets:		72,684	3,749
Marketable securities sold, but not yet purchased
Notes payable		829	829
Bond payable
Total liabilities:		$ 829	829
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,173
Asset-backed securities issued, net of debt issuance costs
CLO VI warehouse credit facility

[1] In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The carrying value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Statements of Financial Condition.

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Note 4 - Fair Value Measurements - Fair Value of Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Mar. 19, 2019	[1]	Dec. 31, 2018
Marketable Securities, Total		$ 81,499			$ 18,874
Other investments		14,009	$ 74,989		9,913
Fair Value, Recurring [Member]
Marketable Securities, Total		68,151			18,874
Equity investments		4,104
Other investments					490
Total assets:		72,458			19,364
Marketable securities sold, but not yet purchased		2,724			4,626
Total liabilities:		2,724			4,626
Fair Value, Recurring [Member] | Investments In Hedge Funds Managed By HCS [Member]
Other investments		203			490
Fair Value, Recurring [Member] | Investments in Private Equity Funds Managed by HCS & JMPAM [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Limited Partner Investment in Private Equity Fund and Real Estate Funds [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Total Return Swap [Member]
Other investments		4,307
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Marketable Securities, Total		16,252			18,874
Equity investments
Other investments
Total assets:		16,252			18,874
Marketable securities sold, but not yet purchased		2,724			4,626
Total liabilities:		2,724			4,626
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Investments In Hedge Funds Managed By HCS [Member]
Other investments
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Investments in Private Equity Funds Managed by HCS & JMPAM [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Limited Partner Investment in Private Equity Fund and Real Estate Funds [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Total Return Swap [Member]
Other investments
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Marketable Securities, Total
Equity investments
Other investments					490
Total assets:		203			490
Marketable securities sold, but not yet purchased
Total liabilities:
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Investments In Hedge Funds Managed By HCS [Member]
Other investments		203			490
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Investments in Private Equity Funds Managed by HCS & JMPAM [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Limited Partner Investment in Private Equity Fund and Real Estate Funds [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Total Return Swap [Member]
Other investments		203
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Marketable Securities, Total		51,899
Equity investments		4,104
Other investments
Total assets:		56,003
Marketable securities sold, but not yet purchased
Total liabilities:
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Investments In Hedge Funds Managed By HCS [Member]
Other investments
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Investments in Private Equity Funds Managed by HCS & JMPAM [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Limited Partner Investment in Private Equity Fund and Real Estate Funds [Member]
Other investments	[2]
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Total Return Swap [Member]
Other investments		4,104
Reported Value Measurement [Member]
Total assets:		154,922			1,352,666
Reported Value Measurement [Member] | Fair Value, Recurring [Member]
Marketable Securities, Total		68,151			18,874
Equity investments		4,104
Other investments					9,913
Total assets:		82,160			28,787
Marketable securities sold, but not yet purchased		2,724			4,626
Total liabilities:		2,724			4,626
Reported Value Measurement [Member] | Fair Value, Recurring [Member] | Investments In Hedge Funds Managed By HCS [Member]
Other investments		203			490
Reported Value Measurement [Member] | Fair Value, Recurring [Member] | Investments in Private Equity Funds Managed by HCS & JMPAM [Member]
Other investments	[2]	5,245			5,503
Reported Value Measurement [Member] | Fair Value, Recurring [Member] | Limited Partner Investment in Private Equity Fund and Real Estate Funds [Member]
Other investments	[2]	4,457			$ 3,920
Reported Value Measurement [Member] | Fair Value, Recurring [Member] | Total Return Swap [Member]
Other investments		$ 14,009

[1] The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively

[2] In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The carrying value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of financial position. The carrying values of these lines reconciles to the parenthetical disclosure of other investments on the Statements of Financial Condition.

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Note 4 - Fair Value Measurements - Changes in Level 3 Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019
Balance	$ 66,477	$ 57
Fair value at recognition date		67,136
Purchases	171	11
Accrued interest	2,038	328
Unrealized losses on investments, recognized in OCI	(2,418)	(1,055)
Investment distributions	(2,053)
Unrealized gains on investments, recognized in earnings	297
Realized losses on sales, recognized in earnings	(112)
Sales	(8,397)
Balance	56,003	66,477
CLO Junior Subordinated Notes [Member]
Balance	53,518
Fair value at recognition date		54,279
Purchases
Accrued interest	1,969	294
Unrealized losses on investments, recognized in OCI	(2,418)	(1,055)
Investment distributions	(1,170)
Unrealized gains on investments, recognized in earnings
Realized losses on sales, recognized in earnings
Sales
Balance	51,899	53,518
CLO Senior Subordinated Notes [Member]
Balance	9,323
Fair value at recognition date		9,289
Purchases
Accrued interest	69	34
Unrealized losses on investments, recognized in OCI
Investment distributions	(883)
Unrealized gains on investments, recognized in earnings
Realized losses on sales, recognized in earnings	(112)
Sales	(8,397)
Balance		9,323
Equity Securities [Member]
Balance	3,636	57
Fair value at recognition date		3,568
Purchases	171	11
Accrued interest
Unrealized losses on investments, recognized in OCI
Investment distributions
Unrealized gains on investments, recognized in earnings	297
Realized losses on sales, recognized in earnings
Sales
Balance	$ 4,104	$ 3,636

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Note 4 - Fair Value Measurements - Significant Unobservable Inputs Used in Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2019 USD ($)	Mar. 19, 2019 USD ($)	[1]	Dec. 31, 2018 USD ($)
Investments fair value	$ 14,009	$ 74,989		$ 9,913
Fair Value, Recurring [Member]
Equity investments	4,104
Investments fair value				490
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Equity investments	$ 4,104
Investments fair value
Collateralized Loan Obligations [Member] | Valuation, Income Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Risk Free Interest Rate [Member]
CLO debt security, measurement input	0.15
CLO debt security	$ 64,157
Collateralized Loan Obligations [Member] | Valuation, Income Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Minimum [Member]
CLO debt security, measurement input	0
Collateralized Loan Obligations [Member] | Valuation, Income Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Loss Severity [Member]
CLO debt security, measurement input	0.25
Collateralized Loan Obligations [Member] | Valuation, Income Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Prepayment Rate [Member]
CLO debt security, measurement input	0.25
Collateralized Loan Obligations [Member] | Valuation, Income Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Collateral Liquidation Price [Member]
CLO debt security, measurement input	0.99
Limited Partner Investment in Private Equity Fund [Member] | Nonredeemable Funds [Member]
Investments fair value	$ 4,457			3,920
Unfunded Commitments	4,833			68
Investments in Private Equity Funds Managed by HCS [Member] | Nonredeemable Funds [Member]
Investments fair value	5,245			5,503
Unfunded Commitments	$ 1,776			1,945
Equity Securities [Member] | Valuation, Market Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Credit Factor [Member]
Equity investment, measurement input	0.2
Equity investments	$ 3,755
Equity Securities [Member] | Valuation, Market Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member]
Equity investment, measurement input	0.176
Equity Securities [Member] | Valuation, Market Approach [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, EBITDA Multiple [Member]
Equity investment, measurement input	7
Equity investments	$ 349			$ 57

[1] The fair value of the Company's retained interest in CLO III, CLO IV, CLO V, CLO VI, and JMPCA as of the deconsolidation date was $13.3 million, $27.8 million, $26.5 million, $3.8 million, and $3.6 million, respectively

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Note 5 - Investment Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CLO Debt Securities [Member]
Debt Securities, Unrealized Gain (Loss), Total	$ 2,400	$ 0	$ 3,500	$ 0

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Note 5 - Investment Securities - Available-for-sale Securities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Securities, Available-for-sale, Amortized Cost	$ 55,372
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(3,473)
Debt Securities, Available-for-sale	51,899
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
CLO IV Junior Subordinated Notes [Member]
Debt Securities, Available-for-sale, Amortized Cost	28,280
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(2,711)
Debt Securities, Available-for-sale	25,569
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available-for-sale, Number of Position	1
CLO V Junior Subordinated Notes [Member]
Debt Securities, Available-for-sale, Amortized Cost	$ 27,092
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(762)
Debt Securities, Available-for-sale	26,330
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax
Debt Securities, Available-for-sale, Number of Position	1

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Note 5 - Investment Securities - Held-to-marturity Securities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Securities, Held-to-maturity	$ 13,348
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(1,090)
Debt Securities, Held-to-maturity, Fair Value	$ 12,258
Debt Securities, Held-to-maturity, Number of Position
CLO III Subordinated Notes [Member]
Debt Securities, Held-to-maturity	$ 13,348
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(1,090)
Debt Securities, Held-to-maturity, Fair Value	$ 12,258
Debt Securities, Held-to-maturity, Number of Position	1

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Note 5 - Investment Securities - Securities by Contractual Maturity (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	$ 28,280
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	25,569
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	13,348
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	12,258
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost	27,092
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	26,330
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Amortized Cost
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value
Debt Securities, Available-for-sale, Amortized Cost, Total	55,372
Debt Securities, Available-for-sale, Total	51,899
Debt Securities, Held-to-maturity, Total	13,348
Debt Securities, Held-to-maturity, Fair Value, Total	$ 12,258

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Note 5 - Investment Securities - Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months	$ 64,157
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(4,563)
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Debt Securities, Unrealized Loss Position	64,157
Debt Securities, Unrealized Loss Position, Accumulated Loss	(4,563)
CLO III Subordinated Notes [Member]
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months	12,258
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,090)
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Debt Securities, Unrealized Loss Position	12,258
Debt Securities, Unrealized Loss Position, Accumulated Loss	(1,090)
CLO IV Junior Subordinated Notes [Member]
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months	25,569
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(2,711)
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Debt Securities, Unrealized Loss Position	25,569
Debt Securities, Unrealized Loss Position, Accumulated Loss	(2,711)
CLO V Junior Subordinated Notes [Member]
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months	26,330
Debt Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(762)
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer
Debt Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Debt Securities, Unrealized Loss Position	26,330
Debt Securities, Unrealized Loss Position, Accumulated Loss	$ (762)

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Note 6 - Loans (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Financing Receivable, Individually Evaluated for Impairment		$ 0		$ 500
Financing Receivable, Past Due		$ 0		$ 0
Financing Receivable, Modifications, Number of Contracts	2	1	2	2
Equity Received from Troubled Debt Restructuring		$ 200	$ 800	$ 800
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down			100	$ 100
Number of Loans Held for Investment		7		5
Impaired Financing Receivable, Recorded Investment, Total		$ 0		$ 1,813
Extended Maturity [Member]
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 1,900	500		1,900
Financing Receivable, Troubled Debt Restructuring, Postmodification		200	1,000	1,000
Loans Collateralizing Asset Backed Securities [Member]
Financing Receivable, Individually Evaluated for Impairment				1,800
Financing Receivable, Collectively Evaluated for Impairment				1,170,200
CLO VI Warehouse Portfolio [Member]
Financing Receivable, after Allowance for Credit Loss, Total				$ 26,000
Loans Held for Investment [Member]
Financing Receivable, Past Due	$ 0	$ 0	$ 0

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Note 6 - Loans - Loans Collateralizing Asset-Backed Securities Issued, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Provision for loan losses		$ (1,280)		$ (2,745)
Impaired Loans [Member]
Balance, at beginning of period		(1,209)	(836)	(391)
Charge off		1,099	181	1,234
Derecognition due to deconsolidation			655
Balance, at end of period		(110)		(110)
Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses				(953)
Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses
Non Impaired Loans [Member]
Balance, at beginning of period		(6,492)	(9,751)	(6,533)
Charge off
Derecognition due to deconsolidation			9,751
Balance, at end of period		(6,861)		(6,861)
Non Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses
Non Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses		$ (369)		$ (328)

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Note 6 - Loans - Loans Collateralizing Asset-Backed Securities Issued, Schedule of Impaired Financing Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2019
Impaired loans with an allowance recorded, recorded investment	$ 1,813
Impaired loans with an allowance recorded, unpaid principal balance	1,951
Impaired loans, related allowance	838
Impaired loans with an allowance recorded, average recorded investment	1,817
Impaired loans with an allowance recorded, interest income recognized	119
Impaired loans with no related allowance recorded, recorded investment	0
Impaired loans with no related allowance recorded, unpaid principal balance	0
Impaired loans with no related allowance recorded, average recorded investment	0
Impaired loans with no related allowance recorded, interest income recognized	0
Impaired loans, recorded investment	1,813	$ 0
Impaired loans, unpaid principal balance	1,951
Impaired loans, average recorded investment	1,817
Impaired loans, interest income recognized	$ 119

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Note 6 - Loans - Credit Quality of Loans (Details) - Loans Collateralizing Asset Backed Securities [Member] - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Recorded investment			$ 1,172,049
Performing Financial Instruments [Member]
Recorded investment			1,170,236
Nonperforming Financial Instruments [Member]
Recorded investment			1,813
Two [Member]
Recorded investment	[1]		1,018,261
Three [Member]
Recorded investment	[1]		132,169
Four [Member]
Recorded investment	[1]		19,806
Five [Member]
Recorded investment	[1]		1,813
Internal Ratings [Member]
Recorded investment	[1]		1,172,049
Baa1 - Baa3 [Member]
Recorded investment			7,300
Ba1 - Ba3 [Member]
Recorded investment			247,686
B1 - B3 [Member]
Recorded investment			856,204
Caa1 - Caa3 [Member]
Recorded investment			59,046
Moody's, Ca Rating [Member]
Recorded investment			1,813
Moodys Credit Rating [Member]
Recorded investment			$ 1,172,049

[1] Loans with an internal rating of 4 or below are reviewed individually to identify loans to be designated for non-accrual status.

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Note 6 - Loans - Loans Held for Investment, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Provision for loan losses		$ (1,280)		$ (2,745)
Impaired Loans [Member]
Balance, at beginning of period		(1,209)	(836)	(391)
Charge off		1,099	181	1,234
Derecognition due to deconsolidation			655
Balance, at end of period		(110)		(110)
Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses				(953)
Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses
Non Impaired Loans [Member]
Balance, at beginning of period		(6,492)	(9,751)	(6,533)
Charge off
Derecognition due to deconsolidation			9,751
Balance, at end of period		(6,861)		(6,861)
Non Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses
Non Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses		(369)		(328)
Loans Held for Investment [Member] | Impaired Loans [Member]
Balance, at beginning of period		(205)	(218)	(2,279)
Charge off		205	218	2,484
Derecognition due to deconsolidation
Balance, at end of period
Loans Held for Investment [Member] | Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses				(205)
Loans Held for Investment [Member] | Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses
Loans Held for Investment [Member] | Non Impaired Loans [Member]
Balance, at beginning of period		(858)	(181)	(494)
Charge off		26		26
Derecognition due to deconsolidation			181
Balance, at end of period		(1,746)		(1,746)
Loans Held for Investment [Member] | Non Impaired Loans [Member] | Specific Reserve [Member]
Provision for loan losses
Loans Held for Investment [Member] | Non Impaired Loans [Member] | General Reserve [Member]
Provision for loan losses		$ (914)		$ (1,278)

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Note 6 - Loans - Loans Held for Investment, Schedule of Impaired Financing Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2019
Impaired loans with an allowance recorded, recorded investment	$ 1,813
Impaired loans with an allowance recorded, unpaid principal balance	1,951
Impaired loans, related allowance	838
Impaired loans with an allowance recorded, average recorded investment	1,817
Impaired loans with an allowance recorded, interest income recognized	119
Impaired loans with no related allowance recorded, recorded investment	0
Impaired loans with no related allowance recorded, unpaid principal balance	0
Impaired loans with no related allowance recorded, average recorded investment	0
Impaired loans with no related allowance recorded, interest income recognized	0
Impaired loans, recorded investment	1,813	$ 0
Impaired loans, unpaid principal balance	1,951
Impaired loans, average recorded investment	1,817
Impaired loans, interest income recognized	119
Impaired Loans [Member] | Loans Held for Investment [Member]
Impaired loans with an allowance recorded, recorded investment	462
Impaired loans with an allowance recorded, unpaid principal balance	484
Impaired loans, related allowance	219
Impaired loans with an allowance recorded, average recorded investment	462
Impaired loans with an allowance recorded, interest income recognized	34
Impaired loans with no related allowance recorded, recorded investment	0
Impaired loans with no related allowance recorded, unpaid principal balance	0
Impaired loans with no related allowance recorded, average recorded investment	0
Impaired loans with no related allowance recorded, interest income recognized	0
Impaired loans, recorded investment	462
Impaired loans, unpaid principal balance	484
Impaired loans, average recorded investment	462
Impaired loans, interest income recognized	$ 34

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Note 6 - Loans - Loans Held for Investment, Credit Quality of Loans (Details) - Loans Held for Investment [Member] - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Recorded investment		$ 5,292	$ 30,009
Performing Financial Instruments [Member]
Recorded investment		5,292	29,547
Nonperforming Financial Instruments [Member]
Recorded investment			462
Two [Member]
Recorded investment	[1]		26,208
Three [Member]
Recorded investment	[1]		909
Four [Member]
Recorded investment	[1]
Five [Member]
Recorded investment	[1]		462
Not Rated [Member]
Recorded investment	[1]	5,292	2,430
Internal Ratings [Member]
Recorded investment	[1]	5,292	30,009
Baa1 - Baa3 [Member]
Recorded investment
Ba1 - Ba3 [Member]
Recorded investment			7,459
B1 - B3 [Member]
Recorded investment		906	18,342
Caa1 - Caa3 [Member]
Recorded investment			419
Ca [Member]
Recorded investment			463
Not Rated [Member]
Recorded investment		4,386	3,326
Moodys Credit Rating [Member]
Recorded investment		$ 5,292	$ 30,009

[1] Loans with an internal rating of 4 or below are reviewed individually to identify loans to be designated for non-accrual status.

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Note 7 - Debt (Details Textual) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jan. 09, 2018
Senior Notes, Total	$ 83,706	$ 83,497
Long-term Line of Credit, Total		22,500
Notes Payable, Total	15,812	829
Consolidated Entity [Member]
Debt Instrument, Interest Rate, Stated Percentage			12.50%
Loans Receivable, Fair Value Disclosure	800		$ 800
Notes Payable, Total	800
Revolving Credit Facility [Member] | CNB [Member] | JMP Securities [Member]
Long-term Line of Credit, Total	15,000	0
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000
Revolving Credit Facility [Member] | CNB [Member] | JMP Securities [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Line of Credit [Member] | CNB [Member] | JMP Securities [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 25,000
Revolving Credit Conversion to Term Loan Portion to Be Paid in First 2 Years [Member] | CNB [Member] | JMP Securities [Member]
Line of Credit Facility, Revolving Credit Conversion to Term Loan, Repayment, Percent of Funded Debt	3.75%
Revolving Credit Conversion to Term Loan Portion to Be Paid in Next 2 Years Member | CNB [Member] | JMP Securities [Member]
Line of Credit Facility, Revolving Credit Conversion to Term Loan, Repayment, Percent of Funded Debt	5.00%
Senior Notes 2023 [Member]
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Senior Notes, Total	$ 36,000
Senior Notes 2027 [Member]
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Senior Notes 2023 and 2027 [Member]
Debt Instrument, Default, Ownership Percentage	25.00%
CLO VI Warehouse Facility [Member] | Revolving Credit Facility [Member]
Debt Instrument, Collateral Amount	$ 0	$ 26,000
CLO VI Warehouse Portfolio [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.25%

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Note 7 - Debt - Debt Issuance Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt obligation	$ 86,000
Less: Debt issuance costs	(2,219)	$ (2,428)
Long-term Debt, Total		1,112,342
Consolidation, Eliminations [Member]
Long-term Debt, Total	(75)	(75)
Senior Notes 2023 [Member]
Debt obligation	36,000	36,000
Senior Notes 2027 [Member]
Debt obligation	50,000	50,000
Senior Notes [Member]
Debt obligation	86,000	86,000
Less: Debt issuance costs	(2,219)	(2,428)
Long-term Debt, Total	$ 83,706	$ 83,497

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Note 7 - Debt - Debt Issuance Costs (Details) (Parentheticals)	Jun. 30, 2019	Dec. 31, 2018
Senior Notes 2023 [Member]
Debt Instrument, Interest Rate, Stated Percentage	8.00%	8.00%
Senior Notes 2027 [Member]
Debt Instrument, Interest Rate, Stated Percentage	7.25%	7.25%

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Note 7 - Debt - Summary of Scheduled Principal Payments of Debt Obligations (Details) $ in Millions	Jun. 30, 2019 USD ($)
2019
2020
2021
2022
2023	36
Thereafter	50
Total	$ 86

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Note 7 - Debt - Notes Payable, Lines of Credit and Credit Facilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Long-term debt		$ 1,112,342
Line of Credit [Member]
Long-term debt	$ 15,812	23,329
Line of Credit [Member] | Facility to Finance Acquisition of Portfolio [Member]
Long-term debt		22,500
Line of Credit [Member] | CNB [Member]
Long-term debt	14,983
Line of Credit [Member] | CNB [Member] | Revolving Credit Facility [Member]
Long-term debt
Notes Payable, Other Payables [Member]
Long-term debt	$ 829	$ 829

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Note 7 - Debt - Notes Payable, Lines of Credit and Credit Facilities (Details) (Parentheticals) - Line of Credit [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Facility to Finance Acquisition of Portfolio [Member]
Credit facility, maximum borrowing capacity	$ 0	$ 100,000
CNB [Member]
Credit facility, maximum borrowing capacity	0	25,000
CNB [Member] | Revolving Credit Facility [Member]
Credit facility, maximum borrowing capacity	$ 0	$ 20,000

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Note 8 - Asset-backed Securities Issued (Details Textual) $ in Thousands	Dec. 31, 2018 USD ($)
Long-term Debt, Total	$ 1,112,342
CLO III and CLO IV [Member] | Total Asset Backed Securities Issued [Member]
Long-term Debt, Total	$ 1,161,500

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Note 8 - Asset-backed Securities Issued - Asset-backed Securities Issued - CLO III, CLO IV, and CLO V (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2019
Notes Originally Issued		$ 86,000
Less: Debt issuance costs	$ (2,428)	$ (2,219)
Total asset-backed securities issued	1,112,342
Unsecured Subordinated Notes [Member]
Notes Originally Issued	$ 7,221
Unsecured Subordinated Notes [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	6.90%
Unsecured Subordinated Notes [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	11.00%
CLO III, CLO IV, and CLOV [Member]
Notes Originally Issued	$ 1,114,100
Less: Debt issuance costs	(8,979)
CLO III, CLO IV, and CLOV [Member] | Class A Senior Secured [Member]
Notes Originally Issued	$ 769,750
CLO III, CLO IV, and CLOV [Member] | Class A Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	0.85%
CLO III, CLO IV, and CLOV [Member] | Class A Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	10.04%
CLO III, CLO IV, and CLOV [Member] | Class B Senior Secured [Member]
Notes Originally Issued	$ 143,700
CLO III, CLO IV, and CLOV [Member] | Class B Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	1.30%
CLO III, CLO IV, and CLOV [Member] | Class B Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	10.04%
CLO III, CLO IV, and CLOV [Member] | Class C Senior Secured [Member]
Notes Originally Issued	$ 71,500
CLO III, CLO IV, and CLOV [Member] | Class C Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	1.80%
CLO III, CLO IV, and CLOV [Member] | Class C Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	9.99%
CLO III, CLO IV, and CLOV [Member] | Class D Senior Secured [Member]
Notes Originally Issued	$ 68,350
CLO III, CLO IV, and CLOV [Member] | Class D Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	2.60%
CLO III, CLO IV, and CLOV [Member] | Class D Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	10.01%
CLO III, CLO IV, and CLOV [Member] | Class E Senior Secured [Member]
Notes Originally Issued	$ 60,800
CLO III, CLO IV, and CLOV [Member] | Class E Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Interest Rate Spread to LIBOR	5.70%
CLO III, CLO IV, and CLOV [Member] | Class E Senior Secured [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Interest Rate Spread to LIBOR	10.03%

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Note 9 - Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Occupancy, Net	$ 1,409	$ 1,143	$ 2,832	$ 2,260

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Note 9 - Leases - Lease Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Weighted -average remaining lease term, operating leases (Year)	5 years 288 days
Weighted-average discount rate, operating leases	6.12%
Cash used in operating activities	$ 2,946

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Note 9 - Leases - Minimum Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
2019	$ 2,153
2020	5,629
2021	5,693
2022	5,649
2023	5,643
Thereafter	6,562
Total minimum future lease payments	31,329
Amounts representing interest	(4,847)
Operating Lease, Liability, Total	$ 26,482

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Note 10 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	6 Months Ended
	Jun. 13, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	May 13, 2019	Feb. 17, 2017
Treasury Stock, Value, Acquired, Cost Method			$ 8,797	$ 1,556
Tender Offer to Repurchase Shares for Cash, Number of Shares					3,000,000
Tender Offer to Repurchase Shares for Cash, Number of Shares, Percentage					14.20%
Share Repurchase Program [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased						1,000,000
Treasury Stock, Shares, Acquired		161,571	318,826
Treasury Stock Acquired, Average Cost Per Share		$ 3.96	$ 4.09
Treasury Stock, Value, Acquired, Cost Method		$ 600	$ 1,300
Tender Offer [Member]
Treasury Stock, Shares, Acquired	1,816,732
Treasury Stock Acquired, Average Cost Per Share	$ 3.95
Treasury Stock, Value, Acquired, Cost Method	$ 7,200

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Note 11 - Accumulated Other Comprehensive Income - Unrealized Gains (Losses) of Accumulated Other Comprehensive Losses (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Beginning, before tax	$ (1,055)
Net unrealized losses during the period, before tax	(2,418)	(1,055)
Beginning, before tax	(3,473)	(1,055)		(3,473)
Beginning, tax effect	273
Net unrealized losses during the period, tax effect	631	273
Beginning, tax effect	904	273		904
Beginning, net of tax	(782)
Net unrealized losses during the period, net of tax	(1,787)	(782)		(2,569)
Beginning, net of tax	$ (2,569)	$ (782)		$ (2,569)

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Note 12 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 06, 2019	Feb. 28, 2015	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0	0	0	0
Share-based Payment Arrangement, Expense, Tax Benefit			$ 155	$ 55	$ 275	$ 113
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense			0	0	0	0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total			0		0
Share-based Payment Arrangement, Expense, Tax Benefit					0
Restricted Stock Units (RSUs) [Member]
Share-based Payment Arrangement, Expense			600	300	1,100	800
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total			1,500		1,500
Share-based Payment Arrangement, Expense, Tax Benefit			98	28	$ 179	28
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	280,000				465,519
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			376	191	$ 737	312
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition					1 year 120 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 4.23
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Stock Appreciation Rights (SARs) [Member]
Share-based Payment Arrangement, Expense			0	25	$ 0	99
Share-based Payment Arrangement, Expense, Tax Benefit			$ 0	$ 6	$ 0	$ 26
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		2,865,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 7.33
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		2 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		2.18%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		17.44%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		20.00%
Plan2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			4,000,000		4,000,000

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Note 12 - Share-based Compensation - Stock Option Activity (Details)	Jun. 30, 2019 $ / shares shares
Options exercisable at end of period, shares subject to option (in shares) | shares	1,300,000
Options exercisable at end of period, weighted average exercise price (in dollars per share) | $ / shares	$ 6.85

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Note 12 - Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Lower exercise price range (in dollars per share)	$ 6.79
Upper exercise price range (in dollars per share)	$ 7.33
Number of options outstanding (in shares)	1,300,000	1,300,000
Options outstanding weighted average remaining contractual life (Year)	182 days
Options outstanding weighted average exercise price (in dollars per share)	$ 6.85	$ 6.85
Options outstanding aggregate intrinsic value
Number of options vested and exercisable (in shares)	1,300,000
Options vested and exercisable weighted average remaining contractual life (Year)	182 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 6,850
Options vested and exercisable aggregate intrinsic value

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Note 12 - Share-based Compensation - Restricted Stock Units Activity (RSUs) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares		6 Months Ended
	Feb. 06, 2019	Jun. 30, 2019
Balance, restricted share units (in shares)		297,639
Balance, weighted average grant date fair value (in dollars per share)		$ 4.79
Granted, restricted share units (in shares)	280,000	465,519
Granted, weighted average grant date fair value (in dollars per share)		$ 4.23
Vested, restricted share units (in shares)		(162,048)
Vested, weighted average grant date fair value (in dollars per share)		$ 4.55
Balance, restricted share units (in shares)		601,110
Balance, weighted average grant date fair value (in dollars per share)		$ 4.42

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Note 12 - Share-based Compensation - SARs Activity (Stock Appreciation Rights (SARs) (Details) - Stock Appreciation Rights (SARs) [Member]	Jun. 30, 2019 $ / shares shares
Balance, restricted share units (in shares) | shares	2,485,000
Balance, weighted average grant date fair value (in dollars per share) | $ / shares	$ 7.33
Balance, restricted share units (in shares) | shares	2,485,000
Balance, weighted average grant date fair value (in dollars per share) | $ / shares	$ 7.33

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Note 12 - Share-based Compensation - SARs Outstanding (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Options outstanding aggregate intrinsic value
Stock Appreciation Rights (SARs) [Member]
Number outstanding, options outstanding (in shares)	2,485,000	2,485,000
Weighted average remaining contractual life, options outstanding (Year)	182 days
Weighted average exercise price, options outstanding (in dollars per share)	$ 7.33
Options outstanding aggregate intrinsic value

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Note 13 - Net Income Per Common Share - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income (loss) attributable to JMP Group LLC	$ (1,112)	$ (1,988)	$ 3,957	$ (2,271)
Basic (in shares)	20,772	21,537	21,028	21,601
Restricted share units (in shares)			123
Diluted weighted average shares outstanding (in shares)	20,772	21,537	21,151	21,601
Basic (in dollars per share)	$ (0.05)	$ (0.09)	$ 0.19	$ (0.11)
Diluted (in dollars per share)	$ (0.05)	$ (0.09)	$ 0.19	$ (0.11)

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Note 14 - ASC 606 Revenue from contracts with customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue from Contract with Customer	$ 24,747	$ 39,387	$ 42,864	$ 71,138
Intersegment Eliminations [Member]
Revenue from Contract with Customer	(25)	(1,297)	(1,032)	(2,244)
Equity and Debt Origination [Member]
Revenue from Contract with Customer	12,328	24,050	19,117	35,912
Equity and Debt Origination [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer	5,408	4,512	10,498	13,312
Strategic Advisory and Private Placements [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Total Investment Banking Revenues [Member]
Revenue from Contract with Customer	17,736	28,562	29,615	49,224
Total Investment Banking Revenues [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Brokerage Commissions [Member]
Revenue from Contract with Customer	3,063	4,095	6,362	7,986
Brokerage Commissions [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Research Payments [Member]
Revenue from Contract with Customer	1,655	1,650	2,864	2,635
Research Payments [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Trading Losses [Member]
Revenue from Contract with Customer	(61)	(298)	(34)	(510)
Trading Losses [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Total Brokerage Revenue [Member]
Revenue from Contract with Customer	4,657	5,447	9,192	10,111
Total Brokerage Revenue [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer
Management Service, Base [Member]
Revenue from Contract with Customer	1,508	3,263	3,205	6,323
Management Service, Base [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer	(25)	(1,051)	(1,032)	(1,998)
Management Service, Incentive [Member]
Revenue from Contract with Customer	846	2,115	852	5,480
Management Service, Incentive [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer		(246)		(246)
Total Asset Management Fees [Member]
Revenue from Contract with Customer	2,354	5,378	4,057	11,803
Total Asset Management Fees [Member] | Intersegment Eliminations [Member]
Revenue from Contract with Customer	(25)	(1,297)	(1,032)	(2,244)
Broker Dealer [Member]
Revenue from Contract with Customer	22,393	34,009	38,807	59,335
Broker Dealer [Member] | Equity and Debt Origination [Member]
Revenue from Contract with Customer	12,328	24,050	19,117	35,912
Broker Dealer [Member] | Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer	5,408	4,512	10,498	13,312
Broker Dealer [Member] | Total Investment Banking Revenues [Member]
Revenue from Contract with Customer	17,736	28,562	29,615	49,224
Broker Dealer [Member] | Brokerage Commissions [Member]
Revenue from Contract with Customer	3,063	4,095	6,362	7,986
Broker Dealer [Member] | Research Payments [Member]
Revenue from Contract with Customer	1,655	1,650	2,864	2,635
Broker Dealer [Member] | Trading Losses [Member]
Revenue from Contract with Customer	(61)	(298)	(34)	(510)
Broker Dealer [Member] | Total Brokerage Revenue [Member]
Revenue from Contract with Customer	4,657	5,447	9,192	10,111
Broker Dealer [Member] | Management Service, Base [Member]
Revenue from Contract with Customer
Broker Dealer [Member] | Management Service, Incentive [Member]
Revenue from Contract with Customer
Broker Dealer [Member] | Total Asset Management Fees [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member]
Revenue from Contract with Customer	2,379	4,658	4,825	8,744
Asset Management Fee Income [Member] | Equity and Debt Origination [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Total Investment Banking Revenues [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Brokerage Commissions [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Research Payments [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Trading Losses [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Total Brokerage Revenue [Member]
Revenue from Contract with Customer
Asset Management Fee Income [Member] | Management Service, Base [Member]
Revenue from Contract with Customer	1,533	4,314	4,237	8,321
Asset Management Fee Income [Member] | Management Service, Incentive [Member]
Revenue from Contract with Customer	846	344	588	423
Asset Management Fee Income [Member] | Total Asset Management Fees [Member]
Revenue from Contract with Customer	2,379	4,658	4,825	8,744
Asset Management Investment Income [Member]
Revenue from Contract with Customer		2,017	264	5,303
Asset Management Investment Income [Member] | Equity and Debt Origination [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Total Investment Banking Revenues [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Brokerage Commissions [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Research Payments [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Trading Losses [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Total Brokerage Revenue [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Management Service, Base [Member]
Revenue from Contract with Customer
Asset Management Investment Income [Member] | Management Service, Incentive [Member]
Revenue from Contract with Customer		2,017	264	5,303
Asset Management Investment Income [Member] | Total Asset Management Fees [Member]
Revenue from Contract with Customer		2,017	264	5,303
Asset Management [Member]
Revenue from Contract with Customer	2,379	6,675	5,089	14,047
Asset Management [Member] | Equity and Debt Origination [Member]
Revenue from Contract with Customer
Asset Management [Member] | Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer
Asset Management [Member] | Total Investment Banking Revenues [Member]
Revenue from Contract with Customer
Asset Management [Member] | Brokerage Commissions [Member]
Revenue from Contract with Customer
Asset Management [Member] | Research Payments [Member]
Revenue from Contract with Customer
Asset Management [Member] | Trading Losses [Member]
Revenue from Contract with Customer
Asset Management [Member] | Total Brokerage Revenue [Member]
Revenue from Contract with Customer
Asset Management [Member] | Management Service, Base [Member]
Revenue from Contract with Customer	1,533	4,314	4,237	8,321
Asset Management [Member] | Management Service, Incentive [Member]
Revenue from Contract with Customer	846	2,361	852	5,726
Asset Management [Member] | Total Asset Management Fees [Member]
Revenue from Contract with Customer	2,379	6,675	5,089	14,047
Corporate Segment [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Equity and Debt Origination [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Strategic Advisory and Private Placements [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Total Investment Banking Revenues [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Brokerage Commissions [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Research Payments [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Trading Losses [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Total Brokerage Revenue [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Management Service, Base [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Management Service, Incentive [Member]
Revenue from Contract with Customer
Corporate Segment [Member] | Total Asset Management Fees [Member]
Revenue from Contract with Customer

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Note 15 - Employee Benefits (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage			100.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0.2	$ 0.3	$ 1.1	$ 1.2
Elective Deferrals Under 3 [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match			100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			3.00%
Elective Deferrals Between 3 and 5 [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match			50.00%
Elective Deferrals Between 3 and 5 [Member] | Minimum [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			3.00%
Elective Deferrals Between 3 and 5 [Member] | Maximum [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			5.00%

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Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Expense (Benefit), Total	$ (517)	$ 4,895	$ (4,619)	$ (673)
Effective Income Tax Rate Reconciliation, Percent, Total	30.20%	132.80%	684.30%	18.55%

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Note 17 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Receivables from Clearing Organizations	$ 0.3	$ 0.3
Contractual Obligation, Total	0.6	27.0
Corporate Credit [Member]
Unfunded Commitments	$ 0.8	$ 28.7

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Note 18 - Regulatory Requirements (Details Textual) $ in Millions	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Ratio of Indebtedness to Net Capital	0.72	0.57
Broker-Dealer, Net Capital, Total	$ 23.0	$ 29.8
Broker-Dealer, Excess Net Capital, 1500 Percent, Aggregate Indebtedness Standard, Total	21.9	28.7
Broker-Dealer, Minimum Net Capital Required, Aggregate Indebtedness Standard, Total	$ 1.1	$ 1.1
Maximum [Member]
Ratio of Indebtedness to Net Capital	15

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Note 19 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 09, 2018	Oct. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Sep. 19, 2017
Noncontrolling Interest, Increase from Subsidiary Equity Issuance						$ 449
Net Income (Loss) Attributable to Noncontrolling Interest, Total			$ (83)	$ 779	$ (13)	(685)
Total Investment [Member]
Investments in Related Parties			22,900		22,900		$ 18,600
General Partner Investments In Hedge And Other Private Funds [Member] | Private Funds [Member]
Investments in Related Parties			12,400		12,400		8,600
Harvest Capital Credit Corporation [Member]
Investments in Related Parties			10,500		10,500		10,000
Affiliated Entity [Member]
Subscription Agreement, Percent Sold	30.00%
Noncontrolling Interest, Increase from Subsidiary Equity Issuance							500
Net Income (Loss) Attributable to Noncontrolling Interest, Total			16	15	31	28
Affiliated Entity [Member] | Management Service, Base [Member]
Revenue from Related Parties			1,500	3,300	3,200	6,300
Affiliated Entity [Member] | Management Service, Incentive [Member]
Revenue from Related Parties			800	$ 2,100	900	$ 5,500
Registered Investment Adviser [Member]
Financing Receivable, after Allowance for Credit Loss, Total			2,400		2,400		2,400	$ 3,400
Loans Receivable, Interest Rate								15.00%
Percentage of Loan Sold to Third Party		30.00%
Value of Loan Sold to Third Party		$ 1,000
Loans Receivable, Fair Value Disclosure			2,500		2,500		$ 2,300
Consolidated Entity [Member]
Loans Receivable, Fair Value Disclosure	$ 800		$ 800		$ 800

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Note 20 - Guarantees (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Indemnification Agreement [Member]
Guarantor Obligations, Current Carrying Value	$ 0	$ 0

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Note 22 - Financial Instruments With Off-balance Sheet Risk, Credit Risk or Market Risk (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Letters of Credit Outstanding, Amount	$ 0	$ 1,400

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Note 23 - Business Segments (Details Textual)	6 Months Ended
	Jun. 30, 2019
Number of Reportable Segments	4
Percent Of Deferred Compensation Recognized	100.00%

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Note 23 - Business Segments - Segment Operating Results (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Non-interest revenues		$ 27,235	$ 41,551	$ 50,884	$ 69,845
Total net revenues after provision for loan losses		28,068	44,264	55,235	71,475
Non-interest expenses		29,780	40,578	55,910	75,104
Segment operating pre-tax net income (loss)		(1,629)	2,907	(662)	(2,944)
Assets		235,973	1,251,031	235,973	1,251,031	$ 1,391,242
Net interest income		833	4,035	4,351	7,043
Gain (loss) on repurchase, reissuance or early retirement of debt			(42)		(2,668)
Provision for loan losses			(1,280)		(2,745)
Non-controlling interest (expense) income		(83)	779	(13)	(685)
Intersegment Eliminations [Member]
Non-interest revenues		(34)	(1,168)	(1,048)	(2,147)
Total net revenues after provision for loan losses		(34)	(1,168)	(1,048)	(2,147)
Non-interest expenses	[1]	(34)	(1,168)	(1,048)	(2,149)
Segment operating pre-tax net income (loss)					2
Assets		(226,911)	(274,705)	(226,911)	(274,705)
Segment Reconciling Items [Member]
Non-interest revenues	[2]	209	576	341	(1,637)
Total net revenues after provision for loan losses		226	441	553	(4,089)
Non-interest expenses	[1]	996	635	2,541	1,759
Segment operating pre-tax net income (loss)		(687)	(973)	(1,975)	(5,163)
Net interest income	[3]	17	1,108	212	1,989
Gain (loss) on repurchase, reissuance or early retirement of debt					(2,626)
Provision for loan losses			(1,243)		(1,815)
Non-controlling interest (expense) income		(83)	779	(13)	(685)
Broker Dealer [Member]
Non-interest revenues		22,399	34,015	38,819	59,344
Total net revenues after provision for loan losses		22,399	34,015	38,819	59,344
Non-interest expenses		23,458	30,410	41,358	53,326
Segment operating pre-tax net income (loss)		(1,059)	3,605	(2,539)	6,018
Assets		53,622	70,349	53,622	70,349
Asset Management [Member]
Non-interest revenues		2,536	4,572	4,897	8,561
Total net revenues after provision for loan losses		2,536	4,572	4,897	8,561
Non-interest expenses		2,883	4,756	5,973	9,776
Segment operating pre-tax net income (loss)		(347)	(184)	(1,076)	(1,215)
Assets		11,424	20,529	11,424	20,529
Investment Income Segment [Member]
Non-interest revenues		2,125	3,556	7,875	5,724
Total net revenues after provision for loan losses		2,941	6,404	12,014	9,806
Non-interest expenses		495	3,372	3,044	7,561
Segment operating pre-tax net income (loss)		2,446	3,032	8,970	2,245
Assets		121,145	1,152,160	121,145	1,152,160
Net interest income		816	2,927	4,139	5,054
Gain (loss) on repurchase, reissuance or early retirement of debt			(42)		(42)
Provision for loan losses			(37)		(930)
Corporate Segment [Member]
Non-interest expenses		1,982	2,573	4,042	4,831
Segment operating pre-tax net income (loss)		(1,982)	(2,573)	(4,042)	(4,831)
Assets		$ 276,693	$ 282,699	$ 276,693	$ 282,699

[1] Non-interest expense adjustments relate to reversals of share-based and deferred compensation and the amortization expense related to an intangible asset.

[2] Non-interest revenue adjustments are comprised of mark-to-market gains/losses on strategic equity investments and warrants, deferred compensation invested in funds, and unrealized gains or losses on commercial real estate investments, adjusted for non-cash expenditures, included depreciation and amortization.

[3] The net interest income adjustment is comprised of costs related to refinancing and early retirement of debt.

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Note 23 - Business Segments - Reconciling Operating Pre-tax Net Income to Consolidated Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating net income (loss)	$ (1,112)	$ (1,988)	$ 3,957	$ (2,271)
Income Tax Expense (Benefit), Total	(517)	4,895	(4,619)	(673)
Pre-tax net income	(1,629)	2,907	(662)	(2,944)
CLO refinancing costs		(10)		54
Unrealized (gain) loss on real estate fund investment – depreciation and amortization	221	(24)	778	1,604
Unrealized gain on other equity investments			(297)	(136)
Pre-tax net income	1,629	(2,907)	662	2,944
Income tax expense (benefit)	(517)	4,895	(4,619)	(673)
Operating Segments [Member]
Operating net income (loss)	(697)	3,384	972	1,753
Income Tax Expense (Benefit), Total	(245)	496	341	466
Pre-tax net income	(942)	3,880	1,313	2,219
Pre-tax net income	942	(3,880)	(1,313)	(2,219)
Income tax expense (benefit)	(245)	496	341	466
Segment Reconciling Items [Member]
Pre-tax net income	(687)	(973)	(1,975)	(5,163)
Share-based awards and deferred compensation	587	69	1,431	213
General loan loss provision – CLOs, CLO warehouse		1,164		1,493
Early debt retirement/reissuance				1,318
Amortization of intangible asset – CLO III		69	277	138
Unrealized gain on other equity investments	(121)	(295)	(511)	343
Pre-tax net income	$ 687	$ 973	$ 1,975	$ 5,163

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Note 24 - Nonconsolidated Variable Interest Entities - VIE Equity Investments and Receivables (Details) - Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying amount, assets	$ 87,757	$ 6,016
Carrying amount, liabilities
Maximum exposure to loss	89,187	7,961
VIE assets	2,762,739	1,439,792
Collateralized Loan Obligations [Member]
Carrying amount, assets	78,348
Carrying amount, liabilities
Maximum exposure to loss	78,348
VIE assets	1,363,427
Private Equity Funds [Member]
Carrying amount, assets	5,215	5,083
Carrying amount, liabilities
Maximum exposure to loss	6,645	7,028
VIE assets	192,378	204,646
Other Equity Interests [Member]
Carrying amount, assets	4,194	933
Carrying amount, liabilities
Maximum exposure to loss	4,194	933
VIE assets	$ 1,206,934	$ 1,235,146

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Note 25 - Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 19, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Cash and cash equivalents	$ 52,901		$ 70,927
Restricted cash	1,221		61,881
Investment banking fees receivable, net of allowance for doubtful accounts	6,169		6,647
Marketable securities owned, at fair value	81,499		18,874
Other investments	32,112		16,124
Loans held for investment, net of allowance for loan losses	5,292		29,608
Interest receivable	386		3,004
Fixed assets, net	2,518		2,351
Operating Lease, Right-of-Use Asset	21,096
Other assets	32,779		20,363
Investment in subsidiaries
Total assets	235,973		1,391,242	$ 1,251,031
Liabilities and Equity
Marketable securities sold, but not yet purchased, at fair value	2,724		4,626
Accrued compensation	13,672		41,609
Interest payable	1,153		11,210
Note payable	15,812		829
Bond payable, net of debt issuance costs	83,706		83,497
Operating Lease, Liability, Total	26,482
Other liabilities	17,252		17,423
Total liabilities	160,801		1,294,036
Total shareholders' equity	75,441		83,707
Non-controlling interest, at carrying value	(269)	$ 12,842	13,499
Total equity	75,172		97,206	102,269	$ 110,179
Total liabilities and equity	235,973		1,391,242
Cash and cash equivalents	52,901		70,927
Restricted cash	1,221		61,881
Investment banking fees receivable, net of allowance for doubtful accounts	6,169		6,647
Marketable securities owned, at fair value	81,499		18,874
Other investments	32,112		16,124
Loans held for investment, net of allowance for loan losses	5,292		29,608
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,161,463
Interest receivable	386		3,004
Fixed assets, net	2,518		2,351
Other assets	32,779		20,363
Investment in subsidiaries
Total assets	235,973		1,391,242	$ 1,251,031
Asset-backed securities issued, net of debt issuance costs			1,112,342
CLO warehouse credit facilities			22,500
Reportable Legal Entities [Member] | Parent Company [Member]
Cash and cash equivalents	8,808		4,863
Restricted cash
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	38,991		10,027
Other investments	3,870		10,922
Loans held for investment, net of allowance for loan losses	1,958		1,139
Interest receivable	40		137
Fixed assets, net
Operating Lease, Right-of-Use Asset
Other assets	119		(18,812)
Investment in subsidiaries	264,858		317,113
Total assets	318,644		325,389
Liabilities and Equity
Marketable securities sold, but not yet purchased, at fair value
Accrued compensation	685
Interest payable
Note payable	127,603		127,603
Bond payable, net of debt issuance costs
Operating Lease, Liability, Total
Other liabilities	5,799		2,700
Total liabilities	134,087		130,303
Total shareholders' equity	184,557		181,497
Non-controlling interest, at carrying value			13,589
Total equity	184,557		195,086
Total liabilities and equity	318,644		325,389
Cash and cash equivalents	8,808		4,863
Restricted cash
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	38,991		10,027
Other investments	3,870		10,922
Loans held for investment, net of allowance for loan losses	1,958		1,139
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
Interest receivable	40		137
Fixed assets, net
Other assets	119		(18,812)
Investment in subsidiaries	264,858		317,113
Total assets	318,644		325,389
Asset-backed securities issued, net of debt issuance costs
CLO warehouse credit facilities
Reportable Legal Entities [Member] | Subsidiary Issuer [Member]
Cash and cash equivalents	7,095		8,755
Restricted cash	1,221		1,221
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	694
Other investments	2,255		1,785
Loans held for investment, net of allowance for loan losses	906
Interest receivable	16		1
Fixed assets, net
Operating Lease, Right-of-Use Asset	21,096
Other assets	131,030		121,932
Investment in subsidiaries	76,166		77,427
Total assets	240,479		211,121
Liabilities and Equity
Marketable securities sold, but not yet purchased, at fair value
Accrued compensation	1,001		150
Interest payable	1,071		1,071
Note payable
Bond payable, net of debt issuance costs	83,780		83,572
Operating Lease, Liability, Total	26,482
Other liabilities	236		7,603
Total liabilities	112,570		92,396
Total shareholders' equity	127,909		118,725
Non-controlling interest, at carrying value
Total equity	127,909		118,725
Total liabilities and equity	240,479		211,121
Cash and cash equivalents	7,095		8,755
Restricted cash	1,221		1,221
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	694
Other investments	2,255		1,785
Loans held for investment, net of allowance for loan losses	906
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
Interest receivable	16		1
Fixed assets, net
Other assets	131,030		121,932
Investment in subsidiaries	76,166		77,427
Total assets	240,479		211,121
Asset-backed securities issued, net of debt issuance costs
CLO warehouse credit facilities
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Cash and cash equivalents	36,998		57,309
Restricted cash			60,660
Investment banking fees receivable, net of allowance for doubtful accounts	6,169		6,647
Marketable securities owned, at fair value	41,888		8,921
Other investments	25,987		13,262
Loans held for investment, net of allowance for loan losses	2,428		28,469
Interest receivable	749		3,345
Fixed assets, net	2,518		2,351
Operating Lease, Right-of-Use Asset
Other assets	46,206		63,386
Investment in subsidiaries
Total assets	162,943		1,405,813
Liabilities and Equity
Marketable securities sold, but not yet purchased, at fair value	2,724		4,626
Accrued compensation	11,986		41,459
Interest payable	501		10,614
Note payable	32,746		17,763
Bond payable, net of debt issuance costs
Operating Lease, Liability, Total
Other liabilities	11,150		8,620
Total liabilities	59,107		1,227,769
Total shareholders' equity	104,317		178,346
Non-controlling interest, at carrying value	(481)		(302)
Total equity	103,836		178,044
Total liabilities and equity	162,943		1,405,813
Cash and cash equivalents	36,998		57,309
Restricted cash			60,660
Investment banking fees receivable, net of allowance for doubtful accounts	6,169		6,647
Marketable securities owned, at fair value	41,888		8,921
Other investments	25,987		13,262
Loans held for investment, net of allowance for loan losses	2,428		28,469
Loans collateralizing asset-backed securities issued, net of allowance for loan losses			1,161,463
Interest receivable	749		3,345
Fixed assets, net	2,518		2,351
Other assets	46,206		63,386
Investment in subsidiaries
Total assets	162,943		1,405,813
Asset-backed securities issued, net of debt issuance costs			1,122,187
CLO warehouse credit facilities			22,500
Consolidation, Eliminations [Member]
Cash and cash equivalents
Restricted cash
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	(74)		(74)
Other investments			(9,845)
Loans held for investment, net of allowance for loan losses
Interest receivable	(419)		(479)
Fixed assets, net
Operating Lease, Right-of-Use Asset
Other assets	(144,576)		(146,143)
Investment in subsidiaries	(341,024)		(394,540)
Total assets	(486,093)		(551,081)
Liabilities and Equity
Marketable securities sold, but not yet purchased, at fair value
Accrued compensation
Interest payable	(419)		(475)
Note payable	(144,537)		(144,537)
Bond payable, net of debt issuance costs	(74)		(75)
Operating Lease, Liability, Total
Other liabilities	67		(1,500)
Total liabilities	(144,963)		(156,432)
Total shareholders' equity	(341,342)		(394,861)
Non-controlling interest, at carrying value	212		212
Total equity	(341,130)		(394,649)
Total liabilities and equity	(486,093)		(551,081)
Cash and cash equivalents
Restricted cash
Investment banking fees receivable, net of allowance for doubtful accounts
Marketable securities owned, at fair value	(74)		(74)
Other investments			(9,845)
Loans held for investment, net of allowance for loan losses
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
Interest receivable	(419)		(479)
Fixed assets, net
Other assets	(144,576)		(146,143)
Investment in subsidiaries	(341,024)		(394,540)
Total assets	$ (486,093)		(551,081)
Asset-backed securities issued, net of debt issuance costs			(9,845)
CLO warehouse credit facilities

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Note 25 - Consolidating Financial Statements - Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investment banking	$ 17,736	$ 28,562	$ 29,615	$ 49,224
Brokerage	4,657	5,447	9,192	10,111
Asset management fees	2,354	5,378	4,057	11,803
Principal transactions	1,423	1,684	6,711	(1,936)
Loss on sale, payoff and mark-to-market of loans	(21)	(150)	(38)	(332)
Net dividend income	293	319	589	615
Other income	793	311	758	360
Equity earnings (losses) of subsidiaries
Non-interest revenues	27,235	41,551	50,884	69,845
Interest income	2,772	15,669	17,063	28,379
Interest expense	(1,939)	(11,634)	(12,712)	(21,336)
Net interest income	833	4,035	4,351	7,043
Total net revenues (losses) after provision for loan losses	28,068	44,264	55,235	71,475
Compensation and benefits	19,945	29,138	37,167	53,399
Administration	2,748	2,711	4,677	4,944
Brokerage, clearing and exchange fees	733	788	1,434	1,565
Travel and business development	1,347	1,202	2,368	2,156
Managed deal expenses	1,334	2,348	1,867	3,914
Communications and technology	1,127	1,047	2,180	2,109
Occupancy	1,409	1,143	2,832	2,260
Professional fees	821	1,138	2,277	3,043
Depreciation	311	287	608	551
Other	5	776	500	1,163
Total non-interest expenses	29,780	40,578	55,910	75,104
Net income (loss) before income tax expense	(1,712)	3,686	(675)	(3,629)
Income tax expense (benefit)	(517)	4,895	(4,619)	(673)
Net income (loss)	(1,195)	(1,209)	3,944	(2,956)
Net Income (Loss) Attributable to Noncontrolling Interest, Total	(83)	779	(13)	(685)
Operating net income (loss)	(1,112)	(1,988)	3,957	(2,271)
Loss on sale, payoff and mark-to-market of loans	(21)	(150)	(38)	(332)
Gain (loss) on repurchase, reissuance or early retirement of debt		(42)		(2,668)
Provision for loan losses		(1,280)		(2,745)
Net income (loss) before income tax expense	(1,712)	3,686	(675)	(3,629)
Non-interest expenses
Compensation and benefits	19,945	29,138	37,167	53,399
Administration	2,748	2,711	4,677	4,944
Brokerage, clearing and exchange fees	733	788	1,434	1,565
Travel and business development	1,347	1,202	2,368	2,156
Managed deal expenses	1,334	2,348	1,867	3,914
Communications and technology	1,127	1,047	2,180	2,109
Occupancy	1,409	1,143	2,832	2,260
Professional fees	821	1,138	2,277	3,043
Depreciation	311	287	608	551
Other	5	776	500	1,163
Total non-interest expenses	29,780	40,578	55,910	75,104
Net income (loss) before income tax expense	(1,712)	3,686	(675)	(3,629)
Income tax expense (benefit)	(517)	4,895	(4,619)	(673)
Net income (loss)	(1,195)	(1,209)	3,944	(2,956)
Net Income (Loss) Attributable to Noncontrolling Interest, Total	(83)	779	(13)	(685)
Operating net income (loss)	(1,112)	(1,988)	3,957	(2,271)
Reportable Legal Entities [Member] | Parent Company [Member]
Investment banking
Brokerage
Asset management fees
Principal transactions	(26)	533	391	(2,646)
Loss on sale, payoff and mark-to-market of loans	(21)	(15)	(21)	(15)
Net dividend income	16	280	118	551
Other income	206		235
Equity earnings (losses) of subsidiaries	865	3,577	11,757	7,100
Non-interest revenues	1,040	4,375	12,480	4,990
Interest income	1,880	667	2,830	1,331
Interest expense	(1,056)	(1,158)	(2,112)	(2,302)
Net interest income	824	(491)	718	(971)
Total net revenues (losses) after provision for loan losses	1,864	3,842	13,198	3,992
Compensation and benefits	445	621	1,026	1,081
Administration	155	171	302	326
Brokerage, clearing and exchange fees
Travel and business development	37	(31)	73	35
Managed deal expenses
Communications and technology		1	2	1
Occupancy
Professional fees	515	590	1,085	1,261
Depreciation
Other		69	277	138
Total non-interest expenses	1,152	1,421	2,765	2,842
Net income (loss) before income tax expense	712	2,421	10,433	1,150
Income tax expense (benefit)	(58)		255
Net income (loss)	770	2,421	10,178	1,150
Net Income (Loss) Attributable to Noncontrolling Interest, Total		815	167	(231)
Operating net income (loss)	770	1,606	10,011	1,381
Loss on sale, payoff and mark-to-market of loans	(21)	(15)	(21)	(15)
Gain (loss) on repurchase, reissuance or early retirement of debt		(42)		(42)
Provision for loan losses				15
Net income (loss) before income tax expense	712	2,421	10,433	1,150
Non-interest expenses
Compensation and benefits	445	621	1,026	1,081
Administration	155	171	302	326
Brokerage, clearing and exchange fees
Travel and business development	37	(31)	73	35
Managed deal expenses
Communications and technology		1	2	1
Occupancy
Professional fees	515	590	1,085	1,261
Depreciation
Other		69	277	138
Total non-interest expenses	1,152	1,421	2,765	2,842
Net income (loss) before income tax expense	712	2,421	10,433	1,150
Income tax expense (benefit)	(58)		255
Net income (loss)	770	2,421	10,178	1,150
Net Income (Loss) Attributable to Noncontrolling Interest, Total		815	167	(231)
Operating net income (loss)	770	1,606	10,011	1,381
Reportable Legal Entities [Member] | Subsidiary Issuer [Member]
Investment banking
Brokerage
Asset management fees
Principal transactions	421	(126)	483	(144)
Loss on sale, payoff and mark-to-market of loans
Net dividend income	28	11	40	14
Other income
Equity earnings (losses) of subsidiaries	(522)	2,719	(1,258)	2,791
Non-interest revenues	(73)	2,604	(735)	2,661
Interest income	1,113	1,141	2,203	2,283
Interest expense	(2,068)	(2,299)	(4,134)	(4,592)
Net interest income	(955)	(1,158)	(1,931)	(2,309)
Total net revenues (losses) after provision for loan losses	(1,028)	1,446	(2,666)	352
Compensation and benefits	1,048	1,235	2,092	2,076
Administration	109	101	219	238
Brokerage, clearing and exchange fees
Travel and business development	12	4	20	18
Managed deal expenses
Communications and technology	2	2	1	5
Occupancy
Professional fees	60	67	124	152
Depreciation
Other
Total non-interest expenses	1,231	1,409	2,456	2,489
Net income (loss) before income tax expense	(2,259)	37	(5,122)	(2,137)
Income tax expense (benefit)	(344)	3,734	(5,243)	(2,255)
Net income (loss)	(1,915)	(3,697)	121	118
Net Income (Loss) Attributable to Noncontrolling Interest, Total
Operating net income (loss)	(1,915)	(3,697)	121	118
Loss on sale, payoff and mark-to-market of loans
Gain (loss) on repurchase, reissuance or early retirement of debt
Provision for loan losses
Net income (loss) before income tax expense	(2,259)	37	(5,122)	(2,137)
Non-interest expenses
Compensation and benefits	1,048	1,235	2,092	2,076
Administration	109	101	219	238
Brokerage, clearing and exchange fees
Travel and business development	12	4	20	18
Managed deal expenses
Communications and technology	2	2	1	5
Occupancy
Professional fees	60	67	124	152
Depreciation
Other
Total non-interest expenses	1,231	1,409	2,456	2,489
Net income (loss) before income tax expense	(2,259)	37	(5,122)	(2,137)
Income tax expense (benefit)	(344)	3,734	(5,243)	(2,255)
Net income (loss)	(1,915)	(3,697)	121	118
Net Income (Loss) Attributable to Noncontrolling Interest, Total
Operating net income (loss)	(1,915)	(3,697)	121	118
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Investment banking	17,736	28,562	29,615	49,224
Brokerage	4,657	5,447	9,192	10,111
Asset management fees	2,388	5,420	4,105	12,025
Principal transactions	1,028	1,277	5,837	854
Loss on sale, payoff and mark-to-market of loans		(135)	(17)	(317)
Net dividend income	249	28	431	50
Other income	587	311	523	360
Equity earnings (losses) of subsidiaries
Non-interest revenues	26,645	40,910	49,686	72,307
Interest income	1,717	15,921	16,143	28,895
Interest expense	(752)	(10,237)	(10,578)	(18,571)
Net interest income	965	5,684	5,565	10,324
Total net revenues (losses) after provision for loan losses	27,610	45,314	55,251	77,245
Compensation and benefits	18,452	27,282	34,049	50,242
Administration	2,518	2,481	4,204	4,602
Brokerage, clearing and exchange fees	733	788	1,434	1,565
Travel and business development	1,298	1,229	2,275	2,103
Managed deal expenses	1,334	2,348	1,867	3,914
Communications and technology	1,125	1,044	2,177	2,103
Occupancy	1,409	1,143	2,832	2,260
Professional fees	246	481	1,068	1,630
Depreciation	311	287	608	551
Other	5	707	223	1,025
Total non-interest expenses	27,431	37,790	50,737	69,995
Net income (loss) before income tax expense	179	7,524	4,514	7,250
Income tax expense (benefit)	(115)	1,161	369	1,582
Net income (loss)	294	6,363	4,145	5,668
Net Income (Loss) Attributable to Noncontrolling Interest, Total	(83)	(36)	(180)	(454)
Operating net income (loss)	377	6,399	4,325	6,122
Loss on sale, payoff and mark-to-market of loans		(135)	(17)	(317)
Gain (loss) on repurchase, reissuance or early retirement of debt				(2,626)
Provision for loan losses		(1,280)		(2,760)
Net income (loss) before income tax expense	179	7,524	4,514	7,250
Non-interest expenses
Compensation and benefits	18,452	27,282	34,049	50,242
Administration	2,518	2,481	4,204	4,602
Brokerage, clearing and exchange fees	733	788	1,434	1,565
Travel and business development	1,298	1,229	2,275	2,103
Managed deal expenses	1,334	2,348	1,867	3,914
Communications and technology	1,125	1,044	2,177	2,103
Occupancy	1,409	1,143	2,832	2,260
Professional fees	246	481	1,068	1,630
Depreciation	311	287	608	551
Other	5	707	223	1,025
Total non-interest expenses	27,431	37,790	50,737	69,995
Net income (loss) before income tax expense	179	7,524	4,514	7,250
Income tax expense (benefit)	(115)	1,161	369	1,582
Net income (loss)	294	6,363	4,145	5,668
Net Income (Loss) Attributable to Noncontrolling Interest, Total	(83)	(36)	(180)	(454)
Operating net income (loss)	377	6,399	4,325	6,122
Consolidation, Eliminations [Member]
Investment banking
Brokerage
Asset management fees	(34)	(42)	(48)	(222)
Principal transactions
Loss on sale, payoff and mark-to-market of loans
Net dividend income
Other income
Equity earnings (losses) of subsidiaries	(343)	(6,296)	(10,499)	(9,891)
Non-interest revenues	(377)	(6,338)	(10,547)	(10,113)
Interest income	(1,938)	(2,060)	(4,113)	(4,130)
Interest expense	1,937	2,060	4,112	4,129
Net interest income	(1)		(1)	(1)
Total net revenues (losses) after provision for loan losses	(378)	(6,338)	(10,548)	(10,114)
Compensation and benefits
Administration	(34)	(42)	(48)	(222)
Brokerage, clearing and exchange fees
Travel and business development
Managed deal expenses
Communications and technology
Occupancy
Professional fees
Depreciation
Other
Total non-interest expenses	(34)	(42)	(48)	(222)
Net income (loss) before income tax expense	(344)	(6,296)	(10,500)	(9,892)
Income tax expense (benefit)
Net income (loss)	(344)	(6,296)	(10,500)	(9,892)
Net Income (Loss) Attributable to Noncontrolling Interest, Total
Operating net income (loss)	(344)	(6,296)	(10,500)	(9,892)
Loss on sale, payoff and mark-to-market of loans
Gain (loss) on repurchase, reissuance or early retirement of debt
Provision for loan losses
Net income (loss) before income tax expense	(344)	(6,296)	(10,500)	(9,892)
Non-interest expenses
Compensation and benefits
Administration	(34)	(42)	(48)	(222)
Brokerage, clearing and exchange fees
Travel and business development
Managed deal expenses
Communications and technology
Occupancy
Professional fees
Depreciation
Other
Total non-interest expenses	(34)	(42)	(48)	(222)
Net income (loss) before income tax expense	(344)	(6,296)	(10,500)	(9,892)
Income tax expense (benefit)
Net income (loss)	(344)	(6,296)	(10,500)	(9,892)
Net Income (Loss) Attributable to Noncontrolling Interest, Total
Operating net income (loss)	$ (344)	$ (6,296)	$ (10,500)	$ (9,892)

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Note 25 - Consolidating Financial Statements - Condensed Consolidating Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net cash provided by (used in) operating activities	$ (31,139)	$ (14,194)
Purchases of fixed assets	(904)	(580)
Purchases of other investments	(9,630)	(1,219)
Sales or distributions from other investments	10,364	11,172
Funding of loans collateralizing asset-backed securities issued	(35,153)	(193,024)
Funding of loans held for investment	(25,587)	(225,351)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued	23,806	172,415
Sale, payoff and principal receipts on loans held for investment	7,020	22,106
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries	(27,771)
Investment in subsidiary
Net cash provided by (used in) investing activities	(57,855)	(214,481)
Proceeds from drawdowns on line of credit	16,583
Proceeds from drawdowns on CLO warehouse facilities	16,583
Repayment of line of credit	(1,600)
Repayment of asset-backed securities issued	(801)	(332,100)
Distributions and distribution equivalents paid on common shares and RSUs	(1,913)	(3,975)
Purchase of common shares for treasury	(8,614)	(1,525)
Distributions to non-controlling interest shareholders	(913)	(649)
Employee taxes paid on shares withheld for tax-withholding purposes	(184)	(31)
Capital contributions of parent		449
Net cash provided by financing activities	10,308	188,449
Net increase (decrease) in cash and cash equivalents	(78,686)	(40,226)
Cash, cash equivalents and restricted cash, beginning of period	132,808	137,321
Cash, cash equivalents and restricted cash, end of period	54,122	97,095
Proceeds from issuance of repurchase agreement		3,878
Repayment of repurchase agreement		(3,878)
Proceeds from sale of note payable to affiliate		829
Payment of debt issuance costs		(1,857)
Proceeds of issuance from asset-backed securities issued		327,605
Reissuance of asset-back securities		4,453
Purchase of subsidiary shares from non-controlling interest holders
Capital contributions of nonredeemable non-controlling interest holders		449
Capital contributions of parent
BNP Paribas [Member]
Proceeds from drawdowns on line of credit	7,750	177,250
Proceeds from drawdowns on CLO warehouse facilities	7,750	177,250
CNB [Member]
Proceeds from drawdowns on line of credit	16,583	18,000
Proceeds from drawdowns on CLO warehouse facilities	16,583	18,000
Reportable Legal Entities [Member] | Parent Company [Member]
Net cash provided by (used in) operating activities	12,953	23,243
Purchases of fixed assets
Purchases of other investments	(401)	(5,187)
Sales or distributions from other investments	1,840	13,161
Funding of loans collateralizing asset-backed securities issued
Funding of loans held for investment	(1,131)	14
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued		(15)
Sale, payoff and principal receipts on loans held for investment	139	1,560
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries
Investment in subsidiary	10,301	9,466
Net cash provided by (used in) investing activities	10,748	18,999
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Repayment of line of credit
Repayment of asset-backed securities issued		(4,453)
Distributions and distribution equivalents paid on common shares and RSUs	(1,913)	(3,975)
Purchase of common shares for treasury	(8,614)	(1,525)
Distributions to non-controlling interest shareholders	(913)	(540)
Employee taxes paid on shares withheld for tax-withholding purposes	(184)	(31)
Capital contributions of parent	(8,133)
Net cash provided by financing activities	(19,757)	(53,117)
Net increase (decrease) in cash and cash equivalents	3,944	(10,875)
Cash, cash equivalents and restricted cash, beginning of period	4,863	13,632
Cash, cash equivalents and restricted cash, end of period	8,807	2,757
Proceeds from issuance of repurchase agreement		3,878
Repayment of repurchase agreement		(3,878)
Proceeds from sale of note payable to affiliate
Payment of debt issuance costs
Proceeds of issuance from asset-backed securities issued
Reissuance of asset-back securities		4,411
Purchase of subsidiary shares from non-controlling interest holders		(656)
Capital contributions of nonredeemable non-controlling interest holders	(8,133)
Capital contributions of parent		(46,348)
Reportable Legal Entities [Member] | Parent Company [Member] | BNP Paribas [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Reportable Legal Entities [Member] | Parent Company [Member] | CNB [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Reportable Legal Entities [Member] | Subsidiary Issuer [Member]
Net cash provided by (used in) operating activities	(11,085)	(1,130)
Purchases of fixed assets
Purchases of other investments	(363)	(430)
Sales or distributions from other investments	329	116
Funding of loans collateralizing asset-backed securities issued
Funding of loans held for investment	(876)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued
Sale, payoff and principal receipts on loans held for investment	7
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries
Investment in subsidiary	1,261	(3,914)
Net cash provided by (used in) investing activities	358	(4,228)
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Repayment of line of credit
Repayment of asset-backed securities issued
Distributions and distribution equivalents paid on common shares and RSUs
Purchase of common shares for treasury
Distributions to non-controlling interest shareholders
Employee taxes paid on shares withheld for tax-withholding purposes
Capital contributions of parent	9,067
Net cash provided by financing activities	9,067	5,445
Net increase (decrease) in cash and cash equivalents	(1,660)	87
Cash, cash equivalents and restricted cash, beginning of period	9,976	6,290
Cash, cash equivalents and restricted cash, end of period	8,316	6,377
Proceeds from issuance of repurchase agreement
Repayment of repurchase agreement
Proceeds from sale of note payable to affiliate
Payment of debt issuance costs		(142)
Proceeds of issuance from asset-backed securities issued
Reissuance of asset-back securities
Purchase of subsidiary shares from non-controlling interest holders
Capital contributions of nonredeemable non-controlling interest holders	9,067
Capital contributions of parent		5,587
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | BNP Paribas [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Reportable Legal Entities [Member] | Subsidiary Issuer [Member] | CNB [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Net cash provided by (used in) operating activities	(22,507)	(26,374)
Purchases of fixed assets	(904)	(580)
Purchases of other investments	(8,866)	(55)
Sales or distributions from other investments	9,073	2,306
Funding of loans collateralizing asset-backed securities issued	(35,153)	(193,024)
Funding of loans held for investment	(23,580)	(225,365)
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued	23,806	172,430
Sale, payoff and principal receipts on loans held for investment	6,874	20,546
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries	(27,771)
Investment in subsidiary
Net cash provided by (used in) investing activities	(56,521)	(223,742)
Proceeds from drawdowns on line of credit	16,583
Proceeds from drawdowns on CLO warehouse facilities	16,583
Repayment of line of credit	(1,600)
Repayment of asset-backed securities issued	(1,679)	(327,647)
Distributions and distribution equivalents paid on common shares and RSUs
Purchase of common shares for treasury
Distributions to non-controlling interest shareholders		(109)
Employee taxes paid on shares withheld for tax-withholding purposes
Capital contributions of parent	(22,996)	449
Net cash provided by financing activities	(1,942)	220,678
Net increase (decrease) in cash and cash equivalents	(80,970)	(29,438)
Cash, cash equivalents and restricted cash, beginning of period	117,969	117,399
Cash, cash equivalents and restricted cash, end of period	36,999	87,961
Proceeds from issuance of repurchase agreement
Repayment of repurchase agreement
Proceeds from sale of note payable to affiliate		829
Payment of debt issuance costs		(1,715)
Proceeds of issuance from asset-backed securities issued		327,605
Reissuance of asset-back securities		42
Purchase of subsidiary shares from non-controlling interest holders		656
Capital contributions of nonredeemable non-controlling interest holders	(22,996)	449
Capital contributions of parent		25,318
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | BNP Paribas [Member]
Proceeds from drawdowns on line of credit	7,750	177,250
Proceeds from drawdowns on CLO warehouse facilities	7,750	177,250
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | CNB [Member]
Proceeds from drawdowns on line of credit		18,000
Proceeds from drawdowns on CLO warehouse facilities		18,000
Consolidation, Eliminations [Member]
Net cash provided by (used in) operating activities	(10,500)	(9,933)
Purchases of fixed assets
Purchases of other investments		4,453
Sales or distributions from other investments	(878)	(4,411)
Funding of loans collateralizing asset-backed securities issued
Funding of loans held for investment
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued
Sale, payoff and principal receipts on loans held for investment
Net decrease in cash and restricted cash due to deconsolidation of subsidiaries
Investment in subsidiary	(11,562)	(5,552)
Net cash provided by (used in) investing activities	(12,440)	(5,510)
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Repayment of line of credit
Repayment of asset-backed securities issued	878
Distributions and distribution equivalents paid on common shares and RSUs
Purchase of common shares for treasury
Distributions to non-controlling interest shareholders
Employee taxes paid on shares withheld for tax-withholding purposes
Capital contributions of parent	22,062
Net cash provided by financing activities	22,940	15,443
Net increase (decrease) in cash and cash equivalents
Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period
Proceeds from issuance of repurchase agreement
Repayment of repurchase agreement
Proceeds from sale of note payable to affiliate
Payment of debt issuance costs
Proceeds of issuance from asset-backed securities issued
Reissuance of asset-back securities
Purchase of subsidiary shares from non-controlling interest holders
Capital contributions of nonredeemable non-controlling interest holders	22,062
Capital contributions of parent		15,443
Consolidation, Eliminations [Member] | BNP Paribas [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities
Consolidation, Eliminations [Member] | CNB [Member]
Proceeds from drawdowns on line of credit
Proceeds from drawdowns on CLO warehouse facilities

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Note 26 - Subsequent Events (Details Textual) $ / shares in Units, $ in Millions	Aug. 01, 2019 $ / shares	Jul. 18, 2019 USD ($) $ / shares	Jun. 30, 2019
Senior Notes 2023 [Member]
Debt Instrument, Interest Rate, Stated Percentage			8.00%
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.04
Dividends Payable, Date Declared	Aug. 01, 2019
Dividends Payable, Date to be Paid	Aug. 30, 2019
Dividends Payable, Date of Record	Aug. 16, 2019
Subsequent Event [Member] | Senior Notes 2023 [Member]
Debt Instrument, Principal Amount Redeemed | $		$ 11
Debt Instrument, Number of Units Redeemed		440,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Redemption Price		$ 25