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Note 28 - Consolidating Financial Statements
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Condensed Financial Statements [Text Block]
28
.
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
8
). In conjunction with the Reorganization Transaction, on 
January 1, 2015, 
JMP Group LLC and JMP Investment Holdings became guarantors of JMP Group Inc. The guarantee is full and unconditional. One of the non-guarantor subsidiaries, JMP Securities, is subject to certain regulations, which require the maintenance of minimum net capital. This requirement
 may 
limit the issuer’s access to this subsidiary’s assets.
 
The following consolidating financial statements present the financial condition,
 results of operations, and cash flows of JMP Group LLC and JMP Investment Holdings LLC (collectively, “Parent Companies and Guarantors”), JMP Group Inc. (“Subsidiary Issuer”), and all other consolidated subsidiaries (collectively, “Non-Guarantor Subsidiaries”) in accordance with the disclosure requirements under SEC Regulation S-
X
Rule
3
-
10.
 
   
As of December 31, 2019
  
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
  
Assets
                                        
Cash and cash equivalents
   $
3,174
     $
9,384
     $
37,072
     $
-
     $
49,630
  
Restricted cash and deposits
    
-
      
1,287
      
-
      
-
      
1,287
  
Investment banking fees receivable, net of allowance for doubtful accounts
    
-
      
-
      
9,066
      
-
      
9,066
  
Marketable securities owned, at fair value
    
10,579
      
23,623
      
38,899
      
-
      
73,101
  
Other investments
    
4,036
      
2,910
      
28,363
      
-
      
35,309
  
Loans held for investment, net of allowance for loan losses
    
1,103
      
92
      
15
      
-
      
1,210
  
Loans collateralizing asset-backed securities issued, net of allowance for loan losses
    
-
      
-
      
-
      
-
      
-
  
Interest receivable
    
-
      
13
      
1,029
      
(540
 )    
502
  
Fixed assets, net
    
-
      
-
      
4,267
      
-
      
4,267
  
Operating lease right-of-use asset    
-
      
19,632
      
-
      
-
      
19,632
  
Other assets
    
629
      
73,761
      
45,871
      
(84,008
 )    
36,253
  
Investment in subsidiaries
    
201,594
      
72,055
      
-
      
(273,649
 )    
-
  
Total assets
   $
221,115
     $
202,757
     $
164,582
     $
(358,197
 )   $
230,257
  
                                         
Liabilities and Equity
                                        
Liabilities:
                                        
Marketable securities sold, but not yet purchased, at fair value
   $
-
     $
-
     $
3,855
     $
-
     $
3,855
  
Accrued compensation
    
-
      
-
      
30,253
      
-
      
30,253
  
Interest payable
    
-
      
463
      
597
      
(540
 )    
520
  
Notes payable
    
72,034
      
-
      
18,745
      
(83,967
 )    
6,812
  
Bond payable, net of debt issuance costs
    
34,278
      
48,306
      
-
      
-
      
82,584
  
Operating lease liability    
-
      
25,394
      
-
      
-
      
25,394
  
Other liabilities
    
10,805
      
218
      
8,387
      
68
      
19,478
  
Total liabilities
   $
117,117
     $
74,381
     $
61,837
     $
(84,439
 )   $
168,896
  
                                         
Total shareholders' (deficit) equity
    
103,998
      
128,376
      
103,285
      
(273,971
 )    
61,688
  
Nonredeemable Non-controlling Interest
   $
-
     $
-
     $
(540
 )   $
213
     $
(327
 )
Total equity
   $
103,998
     $
128,376
     $
102,745
     $
(273,758
 )   $
61,361
  
Total liabilities and equity
   $
221,115
     $
202,757
     $
164,582
     $
(358,197
 )   $
230,257
  
 
 
   
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 Year Ended December 31, 2019
  
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
  
Revenues
                                        
Investment banking
   $
-
     $
-
     $
65,716
     $
-
     $
65,716
  
Brokerage
    
-
      
-
      
17,628
      
-
      
17,628
  
Asset management fees
    
-
      
-
      
7,517
      
(90
 )    
7,427
  
Principal transactions
    
1,031
      
(1,711
 )    
2,024
      
-
      
1,344
  
Gain (loss) on sale, payoff and mark-to-market of loans
    
-
      
-
      
(37
 )    
-
      
(37
 )
Net dividend income
    
129
      
101
      
954
      
-
      
1,184
  
Other income
    
455
      
190
      
1,727
      
-
      
2,372
  
Equity earnings of subsidiaries
    
3,576
      
(7,261
 )    
-
      
3,685
      
-
  
Non-interest revenues
    
5,191
      
(8,681
 )    
95,529
      
3,595
      
95,634
  
                                         
Interest income
    
4,219
      
4,998
      
19,135
      
(6,551
 )    
21,801
  
Interest expense
    
(4,198
 )    
(7,216
 )    
(11,596
 )    
6,552
      
(16,458
 )
Net interest income
    
21
      
(2,218
 )    
7,539
      
1
      
5,343
  
                                         
Loss on repurchase, reissuance or early retirement of debt
    
-
      
(458
 )    
-
      
-
      
(458
 )
Provision for loan losses
    
-
      
(438
 )    
-
      
-
      
(438
 )
                                         
Total net revenues after provision for loan losses
    
5,212
      
(11,795
 )    
103,068
      
3,596
      
100,081
  
                                         
Non-interest expenses
                                        
Compensation and benefits
    
831
      
4,213
      
72,270
      
-
      
77,314
  
Administration
    
656
      
476
      
8,345
      
(90
 )    
9,387
  
Brokerage, clearing and exchange fees
    
-
      
-
      
2,706
      
-
      
2,706
  
Travel and business development
    
97
      
71
      
5,072
      
-
      
5,240
  
Managed deal expense
    
-
      
-
      
3,136
      
-
      
3,136
  
Communications and technology
    
4
      
6
      
4,380
      
-
      
4,390
  
Occupancy
    
-
      
-
      
5,229
      
-
      
5,229
  
Professional fees
    
2,145
      
279
      
1,935
      
-
      
4,359
  
Depreciation
    
-
      
-
      
1,203
      
-
      
1,203
  
Other
    
279.00
      
-
      
221
      
-
      
500
  
Total non-interest expenses
    
4,012
      
5,045
      
104,497
      
(90
 )    
113,464
  
Net income (loss) before income tax expense
    
1,200
      
(16,840
 )    
(1,429
 )    
3,686
      
(13,383
 )
Income tax expense (benefit)
    
(503
 )    
(6,574
 )    
250
      
-
      
(6,827
 )
Net income (loss)
    
1,703
      
(10,266
 )    
(1,679
 )    
3,686
      
(6,556
 )
Less: Net income (loss) attributable to nonredeemable non-controlling interest
    
167
      
-
      
(174
 )    
-
      
(7
 )
Net income (loss) attributable to JMP Group LLC
   $
1,536
     $
(10,266
 )   $
(1,505
 )   $
3,686
      
(6,549
 )
 
 
   
For the Year Ended December 31, 2018
  
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
  
Revenues
                                        
Investment banking
   $
-
     $
-
     $
88,107
     $
-
     $
88,107
  
Brokerage
    
-
      
-
      
20,710
      
-
      
20,710
  
Asset management fees
    
-
      
-
      
19,449
      
(301
 )    
19,148
  
Principal transactions
    
(2,707
 )    
(558
 )    
978
      
-
      
(2,287
 )
Gain (loss) on sale, payoff and mark-to-market of loans
    
(771
 )    
-
      
239
      
-
      
(532
 )
Net dividend income
    
1,123
      
39
      
119
      
-
      
1,281
  
Other income
    
-
      
-
      
1,017
      
-
      
1,017
  
Equity earnings of subsidiaries
    
19,309
      
5,528
      
-
      
(24,837
 )    
-
  
Non-interest revenues
    
16,954
      
5,009
      
130,619
      
(25,138
 )    
127,444
  
                                         
Interest income
    
2,746
      
4,426
      
68,470
      
(9,148
 )    
66,494
  
Interest expense
    
(4,438
 )    
(8,805
 )    
(45,452
 )    
9,143
      
(49,552
 )
Net interest income
    
(1,692
 )    
(4,379
 )    
23,018
      
(5
 )    
16,942
  
                                         
Loss on repurchase, reissuance or early retirement of debt
    
(42
 )    
(170
 )    
(2,626
 )    
-
      
(2,838
 )
Provision for loan losses
    
(204
 )    
-
      
(4,920
 )    
-
      
(5,124
 )
                                         
Total net revenues after provision for loan losses
    
15,016
      
460
      
146,091
      
(25,143
 )    
136,424
  
                                         
Non-interest expenses
                                        
Compensation and benefits
    
2,893
      
4,034
      
90,432
      
-
      
97,359
  
Administration
    
620
      
464
      
8,121
      
(301
 )    
8,904
  
Brokerage, clearing and exchange fees
    
-
      
-
      
3,097
      
-
      
3,097
  
Travel and business development
    
75
      
39
      
4,716
      
-
      
4,830
  
Managed deal expense    
-
      
-
      
4,849
      
-
      
4,849
  
Communications and technology
    
3
      
6
      
4,098
      
-
      
4,107
  
Occupancy
    
-
      
-
      
4,770
      
-
      
4,770
  
Professional fees
    
2,437
      
354
      
2,655
      
-
      
5,446
  
Depreciation
    
-
      
-
      
1,124
      
-
      
1,124
  
Other
    
277
      
-
      
1,717
      
-
      
1,994
  
Total non-interest expenses
    
6,305
      
4,897
      
125,579
      
(301
 )    
136,480
  
Net income (loss) before income taxes
    
8,711
      
(4,437
 )    
20,512
      
(24,842
 )    
(56
 )
Income tax expense (benefit)
    
-
      
(2,529
 )    
3,696
      
-
      
1,167
  
Net income (loss)
    
8,711
      
(1,908
 )    
16,816
      
(24,842
 )    
(1,223
 )
Less: Net income (loss) attributable to nonredeemable non-controlling interest
    
1,224
      
-
      
(260
 )    
-
      
964
  
Net income (loss) attributable to JMP Group LLC
   $
7,487
     $
(1,908
 )   $
17,076
     $
(24,842
 )   $
(2,187
 )
 
 
   
For the Year Ended December 31, 2019
  
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
  
Cash flows from operating activities:
                                        
Net cash provided by (used in) operating activities
   $
3,667
     $
(1,494
 )   $
826
     $
(21,890
 )   $
(18,891
 )
                                         
Cash flows from investing activities:
                                        
Purchases of fixed assets
    
-
      
-
      
(1,388
 )    
-
      
(1,388
 )
Purchases of other investments
    
(499
 )    
(871
 )    
(11,234
 )    
-
      
(12,604
 )
Sales or distributions from other investments
    
1,464
      
830
      
9,028
      
(881
 )    
10,441
  
Funding of loans collateralizing asset-backed securities issued
    
-
      
-
      
(35,153
 )    
-
      
(35,153
 )
Funding of loans held for investment
    
(1,136
 )    
(963
 )    
(23,580
 )    
-
      
(25,679
 )
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
    
1,021
      
7
      
6,872
      
-
      
7,900
  
Net decrease in cash due to deconsolidation
    
-
      
-
      
(27,771
 )    
-
      
(27,771
 )
Investment in subsidiary
    
48,446
      
7,262
      
-
      
(55,708
 )    
-
  
Net cash provided by (used in) investing activities
   $
49,296
     $
6,265
     $
(59,420
 )   $
(56,589
 )   $
(60,448
 )
                                         
Cash flows from financing activities:
                                        
Repayment of bonds payable
    
-
      
(36,000
 )    
-
      
75
      
(35,925
 )
Proceeds from bond issuance
    
36,000
      
-
      
-
      
-
      
36,000
  
Proceeds from drawdowns on CLO warehouse facilities
    
-
      
-
      
7,750
      
-
      
7,750
  
Repayment of note payable
    
-
      
-
      
(10,600
 )    
-
      
(10,600
 )
Proceeds from drawdowns on line-of-credit
    
-
      
-
      
16,583
      
-
      
16,583
  
Payment of debt issuance costs
    
(1,722
 )    
(52
 )    
(113
 )    
-
      
(1,887
 )
Repayment of asset-backed securities issued
    
-
      
-
      
(1,679
 )    
878
      
(801
 )
Repayment of notes payable
    
(20,500
 )    
-
      
(5,000
 )    
25,500
      
-
  
Distributions and distribution equivalents paid on common shares and RSUs
    
(3,526
 )    
-
      
-
      
-
      
(3,526
 )
Purchases of common shares for treasury
    
(8,615
 )    
-
      
-
      
-
      
(8,615
 )
Distributions to non-controlling interest shareholders
    
(912
 )    
-
      
(65
 )    
-
      
(977
 )
Employee taxes paid on shares withheld for tax-withholding purposes
    
(554
 )    
-
      
-
      
-
      
(554
 )
Capital contributions of parent
    
(54,817
 )    
31,970
      
(29,178
 )    
52,025
      
-
  
Net cash provided by (used in) financing activities
   $
(54,646
 )   $
(4,082
 )   $
(22,302
 )   $
78,478
     $
(2,552
 )
Net increase (decrease) in cash and cash equivalents
    
(1,683
 )    
689
      
(80,896
 )    
-
      
(81,891
 )
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
   $
3,180
     $
10,665
     $
37,073
     $
-
     $
50,917
  
 
 
   
For the Year Ended December 31, 2018
  
   
Parent Companies and Guarantors
    
Subsidiary Issuer
    
Non-Guarantor Subsidiaries
    
Eliminations
    
Consolidated JMP Group LLC
  
Cash flows from operating activities:
                                        
Net cash provided by (used in) operating activities
   $
10,905
     $
12,064
     $
34,578
     $
(34,900
 )   $
22,647
  
                                         
Cash flows from investing activities:
                                        
Purchases of fixed assets
    
-
      
-
      
(1,153
 )    
-
      
(1,153
 )
Purchases of other investments
    
(5,896
 )    
(431
 )    
(47
 )    
4,453
      
(1,921
 )
Sales or distributions from other investments
    
13,394
      
1,189
      
3,870
      
(4,411
 )    
14,042
  
Funding of loans collateralizing asset-backed securities issued
    
-
      
-
      
(434,820
 )    
-
      
(434,820
 )
Funding of loans held for investment
    
(678
 )    
-
      
(339,196
 )    
-
      
(339,874
 )
Sale, payoff and principal receipts of loans collateralizing asset-backed securities issued
    
-
      
-
      
399,161
      
-
      
399,161
  
Sale, payoff and principal receipts on loans held for investment
    
2,881
      
-
      
26,635
      
-
      
29,516
  
Investment in subsidiary
    
37,106
      
(6,652
 )    
-
      
(30,454
 )    
-
  
Net cash provided by (used in) investing activities
   $
46,807
     $
(5,894
 )   $
(345,550
 )   $
(30,412
 )   $
(335,049
 )
                                         
Cash flows from financing activities:
                                        
Redemption/repurchase of bonds payable
    
-
      
(9,980
 )    
-
      
-
      
(9,980
 )
Proceeds from issuance of repurchase agreement
    
3,878
      
-
      
-
      
-
      
3,878
  
Proceeds from drawdowns on CLO warehouse facilities
    
-
      
-
      
286,250
      
-
      
286,250
  
Repayments on CLO V warehouse facility
    
-
      
-
      
(325,000
 )    
-
      
(325,000
 )
Proceeds from sale of note payable to affiliate
    
-
      
-
      
829
      
-
      
829
  
Payments of debt issuance costs
    
-
      
(203
 )    
(1,715
 )    
21
      
(1,897
 )
Repayment of asset-backed securities issued
    
(4,453
 )    
-
      
(327,926
 )    
-
      
(332,379
 )
Repayment of notes payable
    
(10,000
 )    
-
      
-
      
10,000
      
-
  
Repayment of repurchase agreement    
(3,878
 )    
-
      
-
      
-
      
(3,878
 )
Proceeds from issuance of asset-backed securities issued
    
-
      
-
      
699,107
      
-
      
699,107
  
Reissuance of asset-back securities
    
4,411
      
-
      
42
      
-
      
4,453
  
Distributions and distribution equivalents paid on common shares and RSUs
    
(7,874
 )    
-
      
-
      
-
      
(7,874
 )
Capital contributions of nonredeemable non-controlling interest holders
    
-
      
-
      
449
      
-
      
449
  
Purchases of common shares for treasury
    
(3,250
 )    
-
      
-
      
-
      
(3,250
 )
Purchase of subsidiary shares from non-controlling interest holders
    
(656
 )    
-
      
656
      
-
      
-
  
Distributions to non-controlling interest shareholders
    
(2,304
 )    
-
      
(110
 )    
-
      
(2,414
 )
Employee taxes paid on shares withheld for tax-withholding purposes
    
(405
 )    
-
      
-
      
-
      
(405
 )
Capital contributions of parent
    
(41,950
 )    
7,699
      
(21,040
 )    
55,291
      
-
  
Net cash provided by (used in) financing activities
   $
(66,481
 )   $
(2,484
 )   $
311,542
     $
65,312
     $
307,889
  
Net increase (decrease) in cash and cash equivalents
    
(8,769
 )    
3,686
      
570
      
-
      
(4,513
 )
Cash, cash equivalents and restricted cash, beginning of period
    
13,632
      
6,290
      
117,399
      
-
      
137,321
  
Cash, cash equivalents and restricted cash, end of period
   $
4,863
     $
9,976
     $
117,969
     $
-
     $
132,808