QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
TABLE OF CONTENTS | Page | ||||
ii | |||||
ii | |||||
Note 1 - Organization and Description of the Company | |||||
Note 2 - Summary of Significant Accounting Policies | |||||
Note 3 - Revenue | |||||
Note 4 - Acquisitions | |||||
Note 5 - Fair Value Measurements | |||||
Note 6 - Investment Securities | |||||
Note 7 - Goodwill and Other Intangibles, Net | |||||
Note 9 - Corporate Debt and Other Borrowings, Net | |||||
Note 10 - Commitments and Contingencies | |||||
Note 11 - Stockholders’ Equity | |||||
Note 12 - Share-based Compensation | |||||
Note 13 - Earnings per Share | |||||
Note 14 - Net Capital and Regulatory Requirements | |||||
Note 15 - Financial Instruments with Off-Balance Sheet Credit Risk and Concentrations of Credit Risk | |||||
• Alternative Investments | • Retirement Plan Products | |||||||
• Annuities | • Separately Managed Accounts | |||||||
• Exchange Traded Products | • Structured Products | |||||||
• Insurance Based Products | • Unit Investment Trusts | |||||||
• Mutual Funds |
As of and for the Three Months Ended | |||||||||||
June 30, | March 31, | June 30, | |||||||||
Operating Metrics (dollars in billions)(1) | 2023 | 2023 | 2022 | ||||||||
Advisory and Brokerage Assets(2) | |||||||||||
Advisory assets | $ | 661.6 | $ | 620.9 | $ | 558.6 | |||||
Brokerage assets | 578.6 | 554.3 | 506.0 | ||||||||
Total Advisory and Brokerage Assets | $ | 1,240.2 | $ | 1,175.2 | $ | 1,064.6 | |||||
Advisory as a % of total Advisory and Brokerage Assets | 53.3% | 52.8% | 52.5% | ||||||||
Net New Assets(3) | |||||||||||
Net new advisory assets | $ | 18.1 | $ | 14.6 | $ | 11.4 | |||||
Net new brokerage assets | 3.6 | 9.9 | 25.8 | ||||||||
Total Net New Assets | $ | 21.7 | $ | 24.5 | $ | 37.2 | |||||
Organic Net New Assets | |||||||||||
Organic net new advisory assets | $ | 18.1 | $ | 13.7 | $ | 11.4 | |||||
Organic net new brokerage assets | 3.6 | 7.1 | 25.8 | ||||||||
Total Organic Net New Assets | $ | 21.7 | $ | 20.8 | $ | 37.2 | |||||
Organic advisory net new assets annualized growth(4) | 11.7% | 9.4% | 7.3% | ||||||||
Total organic net new assets annualized growth(4) | 7.4% | 7.5% | 12.8% | ||||||||
Client Cash Balances | |||||||||||
Insured cash account sweep | $ | 36.0 | $ | 39.7 | $ | 40.8 | |||||
Deposit cash account sweep | 9.5 | 10.2 | 12.3 | ||||||||
Total Bank Sweep | 45.5 | 49.9 | 53.1 | ||||||||
Money market sweep | 2.3 | 2.6 | 15.0 | ||||||||
Total Client Cash Sweep Held by Third Parties | 47.9 | 52.5 | 68.1 | ||||||||
Client cash account | 2.1 | 2.1 | 1.5 | ||||||||
Total Client Cash Balances | $ | 50.0 | $ | 54.6 | $ | 69.6 | |||||
Client Cash Balances as a % of Total Assets | 4.0% | 4.6% | 6.5% | ||||||||
Net buy (sell) activity(5) | $ | 32.3 | $ | 36.9 | $ | 5.3 |
As of and for the Three Months Ended | |||||||||||
June 30, | March 31, | June 30, | |||||||||
Business and Financial Metrics (dollars in millions) | 2023 | 2023 | 2022 | ||||||||
Advisors | 21,942 | 21,521 | 20,871 | ||||||||
Average total assets per advisor(6) | $ | 56.5 | $ | 54.6 | $ | 51.0 | |||||
Share repurchases | $ | 350.0 | $ | 275.0 | $ | 50.0 | |||||
Dividends | $ | 23.1 | $ | 23.6 | $ | 20.0 | |||||
Leverage ratio(7) | 1.25 | 1.34 | 2.09 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
Financial Metrics (dollars in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Total revenue | $ | 2,468.8 | $ | 2,038.9 | $ | 4,886.6 | $ | 4,104.6 | ||||||
Net income | $ | 285.5 | $ | 160.5 | $ | 624.4 | $ | 294.3 | ||||||
Earnings per share (“EPS”), diluted | $ | 3.65 | $ | 1.97 | $ | 7.90 | $ | 3.61 | ||||||
Non-GAAP Financial Metrics (dollars in millions, except per share data) | ||||||||||||||
Adjusted EPS(8) | $ | 3.94 | $ | 2.24 | $ | 8.44 | $ | 4.20 | ||||||
Gross profit(9) | $ | 989.8 | $ | 711.1 | $ | 2,009.8 | $ | 1,380.1 | ||||||
EBITDA(10) | $ | 518.8 | $ | 310.7 | $ | 1,082.6 | $ | 577.9 | ||||||
Core G&A(11) | $ | 337.0 | $ | 286.0 | $ | 663.2 | $ | 566.9 |
June 30, | March 31, | June 30, | |||||||||
Credit Agreement Net Debt Reconciliation | 2023 | 2023 | 2022 | ||||||||
Corporate debt and other borrowings | $ | 3,019.6 | $ | 2,870.2 | $ | 2,743.3 | |||||
Corporate Cash(12) | (325.5) | (234.2) | (241.5) | ||||||||
Credit Agreement Net Debt(†) | $ | 2,694.1 | $ | 2,636.0 | $ | 2,501.8 | |||||
June 30, | March 31, | June 30, | |||||||||
EBITDA and Credit Agreement EBITDA Reconciliation | 2023 | 2023 | 2022 | ||||||||
Net income | $ | 1,175.8 | $ | 1,050.8 | $ | 505.4 | |||||
Interest expense on borrowings | 154.3 | 138.2 | 110.2 | ||||||||
Provision for income taxes | 383.5 | 331.9 | 154.8 | ||||||||
Depreciation and amortization | 220.3 | 210.4 | 173.1 | ||||||||
Amortization of other intangibles | 96.0 | 90.5 | 84.3 | ||||||||
EBITDA(†) | $ | 2,029.9 | $ | 1,821.9 | $ | 1,027.8 | |||||
Credit Agreement Adjustments: | |||||||||||
Acquisition costs and other | $ | 35.9 | $ | 42.0 | $ | 86.9 | |||||
Employee share-based compensation | 58.4 | 55.3 | 45.8 | ||||||||
M&A accretion(13) | 36.4 | 42.0 | 32.1 | ||||||||
Advisor share-based compensation | 2.6 | 2.6 | 2.3 | ||||||||
Credit Agreement EBITDA(†) | $ | 2,163.2 | $ | 1,963.7 | $ | 1,194.9 | |||||
June 30, | March 31, | June 30, | |||||||||
2023 | 2023 | 2022 | |||||||||
Leverage Ratio | 1.25 | 1.34 | 2.09 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Adjusted Net Income / Adjusted EPS Reconciliation | Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
Net income / earnings per diluted share | $ | 285.5 | $ | 3.65 | $ | 160.5 | $ | 1.97 | $ | 624.4 | $ | 7.90 | $ | 294.3 | $ | 3.61 | ||||||||||
Amortization of other intangibles | 26.7 | 0.34 | 21.2 | 0.26 | 50.8 | 0.64 | 42.4 | 0.52 | ||||||||||||||||||
Acquisition costs(14) | 4.1 | 0.05 | 8.9 | 0.11 | 7.2 | 0.09 | 22.2 | 0.27 | ||||||||||||||||||
Tax benefit | (8.1) | (0.10) | (7.9) | (0.10) | (15.2) | (0.19) | (16.9) | (0.21) | ||||||||||||||||||
Adjusted Net Income / Adjusted EPS(†) | $ | 308.3 | $ | 3.94 | $ | 182.7 | $ | 2.24 | $ | 667.2 | $ | 8.44 | $ | 342.0 | $ | 4.20 | ||||||||||
Weighted-average shares outstanding, diluted | 78.2 | 81.4 | 79.1 | 81.5 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
Gross Profit | 2023 | 2022 | 2023 | 2022 | ||||||||||
Total revenue | $ | 2,468.8 | $ | 2,038.9 | $ | 4,886.6 | $ | 4,104.6 | ||||||
Advisory and commission expense | 1,448.8 | 1,304.4 | 2,819.4 | 2,678.6 | ||||||||||
Brokerage, clearing and exchange expense | 29.1 | 23.4 | 55.3 | 46.0 | ||||||||||
Employee deferred compensation(15) | 1.1 | — | 2.2 | — | ||||||||||
Gross Profit(†) | $ | 989.8 | $ | 711.1 | $ | 2,009.8 | $ | 1,380.1 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
EBITDA Reconciliation | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 285.5 | $ | 160.5 | $ | 624.4 | $ | 294.3 | ||||||
Interest expense on borrowings | 44.8 | 28.8 | 84.0 | 56.0 | ||||||||||
Provision for income taxes | 103.3 | 51.8 | 208.9 | 91.4 | ||||||||||
Depreciation and amortization | 58.4 | 48.5 | 114.4 | 93.9 | ||||||||||
Amortization of other intangibles | 26.7 | 21.2 | 50.8 | 42.4 | ||||||||||
EBITDA(†) | $ | 518.8 | $ | 310.7 | $ | 1,082.6 | $ | 577.9 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
Core G&A Reconciliation | 2023 | 2022 | 2023 | 2022 | ||||||||||
Total expense | $ | 2,080.0 | $ | 1,826.6 | $ | 4,053.3 | $ | 3,718.9 | ||||||
Advisory and commission | (1,448.8 | ) | (1,304.4 | ) | (2,819.4 | ) | (2,678.6 | ) | ||||||
Depreciation and amortization | (58.4 | ) | (48.5 | ) | (114.4 | ) | (93.9 | ) | ||||||
Interest expense on borrowings | (44.8 | ) | (28.8 | ) | (84.0 | ) | (56.0 | ) | ||||||
Brokerage, clearing and exchange | (29.1 | ) | (23.4 | ) | (55.3 | ) | (46.0 | ) | ||||||
Amortization of other intangibles | (26.7 | ) | (21.2 | ) | (50.8 | ) | (42.4 | ) | ||||||
Employee deferred compensation(15) | (1.1 | ) | — | (2.2 | ) | — | ||||||||
Total G&A(†) | 471.0 | 400.4 | 927.2 | 802.1 | ||||||||||
Promotional (ongoing)(14)(16) | (106.5 | ) | (83.8 | ) | (207.7 | ) | (171.2 | ) | ||||||
Employee share-based compensation | (16.8 | ) | (13.7 | ) | (34.7 | ) | (26.4 | ) | ||||||
Regulatory charges | (6.6 | ) | (8.1 | ) | (14.3 | ) | (15.4 | ) | ||||||
Acquisition costs(14) | (4.1 | ) | (8.9 | ) | (7.2 | ) | (22.2 | ) | ||||||
Core G&A(†) | $ | 337.0 | $ | 286.0 | $ | 663.2 | $ | 566.9 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
Acquisition costs | 2023 | 2022 | 2023 | 2022 | ||||||||||
Professional services | $ | 2.6 | $ | 1.9 | $ | 4.2 | $ | 7.5 | ||||||
Compensation and benefits | 1.0 | 6.7 | 1.9 | 12.3 | ||||||||||
Promotional(16) | 0.3 | — | 0.5 | 1.9 | ||||||||||
Other | 0.2 | 0.3 | 0.6 | 0.5 | ||||||||||
Acquisition costs | $ | 4.1 | $ | 8.9 | $ | 7.2 | $ | 22.2 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||
REVENUE | ||||||||||||||||||||
Advisory | $ | 1,014,565 | $ | 1,001,851 | 1 | % | $ | 1,968,622 | $ | 2,048,948 | (4) | % | ||||||||
Commission: | ||||||||||||||||||||
Trailing | 323,925 | 320,883 | 1 | % | 641,578 | 666,077 | (4) | % | ||||||||||||
Sales-based | 298,961 | 252,493 | 18 | % | 585,033 | 492,824 | 19 | % | ||||||||||||
Total commission | 622,886 | 573,376 | 9 | % | 1,226,611 | 1,158,901 | 6 | % | ||||||||||||
Asset-based: | ||||||||||||||||||||
Client cash | 378,415 | 154,700 | 145 | % | 796,690 | 239,416 | n/m | |||||||||||||
Other asset-based | 211,300 | 208,897 | 1 | % | 414,773 | 420,582 | (1) | % | ||||||||||||
Total asset-based | 589,715 | 363,597 | 62 | % | 1,211,463 | 659,998 | 84 | % | ||||||||||||
Service and fee | 123,122 | 112,802 | 9 | % | 242,109 | 225,614 | 7 | % | ||||||||||||
Transaction | 46,936 | 44,416 | 6 | % | 95,871 | 91,142 | 5 | % | ||||||||||||
Interest income, net | 37,972 | 10,121 | n/m | 75,330 | 17,866 | n/m | ||||||||||||||
Other | 33,608 | (67,276) | (150 | %) | 66,630 | (97,889) | (168 | %) | ||||||||||||
Total revenue | 2,468,804 | 2,038,887 | 21 | % | 4,886,636 | 4,104,580 | 19 | % | ||||||||||||
EXPENSE | ||||||||||||||||||||
Advisory and commission | 1,448,763 | 1,304,422 | 11 | % | 2,819,397 | 2,678,556 | 5 | % | ||||||||||||
Compensation and benefits | 231,680 | 196,699 | 18 | % | 465,213 | 388,733 | 20 | % | ||||||||||||
Promotional | 102,565 | 78,027 | 31 | % | 200,788 | 165,029 | 22 | % | ||||||||||||
Occupancy and equipment | 65,005 | 55,906 | 16 | % | 125,178 | 107,018 | 17 | % | ||||||||||||
Depreciation and amortization | 58,377 | 48,453 | 20 | % | 114,431 | 93,907 | 22 | % | ||||||||||||
Interest expense on borrowings | 44,842 | 28,755 | 56 | % | 84,026 | 55,966 | 50 | % | ||||||||||||
Brokerage, clearing and exchange | 29,148 | 23,362 | 25 | % | 55,274 | 45,962 | 20 | % | ||||||||||||
Amortization of other intangibles | 26,741 | 21,168 | 26 | % | 50,833 | 42,364 | 20 | % | ||||||||||||
Communications and data processing | 20,594 | 16,223 | 27 | % | 38,269 | 31,350 | 22 | % | ||||||||||||
Professional services | 18,092 | 17,290 | 5 | % | 32,312 | 36,312 | (11) | % | ||||||||||||
Other | 34,178 | 36,261 | (6 | %) | 67,599 | 73,683 | (8) | % | ||||||||||||
Total expense | 2,079,985 | 1,826,566 | 14 | % | 4,053,320 | 3,718,880 | 9 | % | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 388,819 | 212,321 | 83 | % | 833,316 | 385,700 | 116 | % | ||||||||||||
PROVISION FOR INCOME TAXES | 103,299 | 51,776 | 100 | % | 208,912 | 91,411 | 129 | % | ||||||||||||
NET INCOME | $ | 285,520 | $ | 160,545 | 78 | % | $ | 624,404 | $ | 294,289 | 112 | % |
June 30, | ||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||
Corporate advisory assets | $ | 442.1 | $ | 372.1 | $ | 70.0 | 19 | % | ||||||
Independent RIA advisory assets | 219.5 | 186.5 | 33.0 | 18 | % | |||||||||
Total advisory assets | $ | 661.6 | $ | 558.6 | $ | 103.0 | 18 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Balance - Beginning of period | $ | 620.9 | $ | 624.3 | $ | 583.1 | $ | 643.2 | ||||||
Net new advisory assets(1) | 18.1 | 11.4 | 32.7 | 28.8 | ||||||||||
Market impact(2) | 22.6 | (77.1) | 45.8 | (113.4) | ||||||||||
Balance - End of period | $ | 661.6 | $ | 558.6 | $ | 661.6 | $ | 558.6 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||
Trailing | $ | 323,925 | $ | 320,883 | $ | 3,042 | 1 | % | $ | 641,578 | $ | 666,077 | $ | (24,499) | (4) | % | ||||||||||
Sales-based | 298,961 | 252,493 | 46,468 | 18 | % | 585,033 | 492,824 | 92,209 | 19 | % | ||||||||||||||||
Total commission revenue | $ | 622,886 | $ | 573,376 | $ | 49,510 | 9 | % | $ | 1,226,611 | $ | 1,158,901 | $ | 67,710 | 6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Balance - Beginning of period | $ | 554.3 | $ | 538.8 | $ | 527.7 | $ | 563.2 | ||||||
Net new brokerage assets(1) | 3.6 | 25.8 | 13.5 | 26.0 | ||||||||||
Market impact(2) | 20.7 | (58.6) | 37.4 | (83.2) | ||||||||||
Balance - End of period | $ | 578.6 | $ | 506.0 | $ | 578.6 | $ | 506.0 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Payout rate | 86.70% | 86.97% | (27 bps) | 86.45% | 86.53% | (8 bps) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Average number of employees | 7,457 | 6,107 | 22% | 7,291 | 6,083 | 20% |
June 30, 2023 | December 31, 2022 | |||||||
Cash and equivalents | $ | 761,187 | $ | 847,519 | ||||
Cash at regulated subsidiaries | (648,981) | (392,571) | ||||||
Excess cash at regulated subsidiaries per the Credit Agreement | 213,254 | 4,439 | ||||||
Corporate Cash | $ | 325,460 | $ | 459,387 | ||||
Corporate Cash | ||||||||
Cash at the Parent | $ | 104,967 | $ | 448,180 | ||||
Excess cash at regulated subsidiaries per the Credit Agreement | 213,254 | 4,439 | ||||||
Cash at non-regulated subsidiaries | 7,239 | 6,768 | ||||||
Corporate Cash | $ | 325,460 | $ | 459,387 |
Description | Borrower | Maturity Date | Outstanding | Available | ||||||||||
Senior secured, revolving credit facility(1) | LPL Holdings, Inc. | March 2026 | $ | 287 | $ | 713 | ||||||||
Broker-dealer revolving credit facility(2) | LPL Financial LLC | August 2023 | $ | — | $ | 1,000 | ||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2023 | $ | — | $ | 75 | ||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2023 | $ | — | $ | 50 | ||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | $ | 75 | ||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | unspecified | |||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | — | unspecified |
June 30, 2023 | |||||
LPL Financial LLC | |||||
Net capital | $ | 279,982 | |||
Less: required net capital | 16,154 | ||||
Excess net capital | $ | 263,828 |
June 30, 2023 | ||||||||
Financial Ratio | Covenant Requirement | Actual Ratio | ||||||
Leverage Ratio (Maximum)(1) | 5.00 | 1.25 | ||||||
Interest Coverage (Minimum) | 3.00 | 15.19 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
REVENUE | ||||||||||||||
Advisory | $ | $ | $ | $ | ||||||||||
Commission: | ||||||||||||||
Trailing | ||||||||||||||
Sales-based | ||||||||||||||
Total commission | ||||||||||||||
Asset-based: | ||||||||||||||
Client cash | ||||||||||||||
Other asset-based | ||||||||||||||
Total asset-based | ||||||||||||||
Service and fee | ||||||||||||||
Transaction | ||||||||||||||
Interest income, net | ||||||||||||||
Other | ( | ( | ||||||||||||
Total revenue | ||||||||||||||
EXPENSE | ||||||||||||||
Advisory and commission | ||||||||||||||
Compensation and benefits | ||||||||||||||
Promotional | ||||||||||||||
Occupancy and equipment | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Interest expense on borrowings | ||||||||||||||
Brokerage, clearing and exchange | ||||||||||||||
Amortization of other intangibles | ||||||||||||||
Communications and data processing | ||||||||||||||
Professional services | ||||||||||||||
Other | ||||||||||||||
Total expense | ||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | ||||||||||||||
PROVISION FOR INCOME TAXES | ||||||||||||||
NET INCOME | $ | $ | $ | $ | ||||||||||
EARNINGS PER SHARE | ||||||||||||||
Earnings per share, basic | $ | $ | $ | $ | ||||||||||
Earnings per share, diluted | $ | $ | $ | $ | ||||||||||
Weighted-average shares outstanding, basic | ||||||||||||||
Weighted-average shares outstanding, diluted |
ASSETS | June 30, 2023 | December 31, 2022 | ||||||
Cash and equivalents | $ | $ | ||||||
Cash and equivalents segregated under federal or other regulations | ||||||||
Restricted cash | ||||||||
Receivables from clients, net | ||||||||
Receivables from brokers, dealers and clearing organizations | ||||||||
Advisor loans, net | ||||||||
Other receivables, net | ||||||||
Investment securities | ||||||||
Property and equipment, net | ||||||||
Goodwill | ||||||||
Other intangibles, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
LIABILITIES: | ||||||||
Client payables | $ | $ | ||||||
Payables to brokers, dealers and clearing organizations | ||||||||
Accrued advisory and commission expenses payable | ||||||||
Corporate debt and other borrowings, net | ||||||||
Accounts payable and accrued liabilities | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Note 10) | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ | ||||||||
Additional paid-in capital | ||||||||
Treasury stock, at cost — | ( | ( | ||||||
Retained earnings | ||||||||
Total stockholders’ equity | ||||||||
Total liabilities and stockholders’ equity | $ | $ |
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — March 31, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | — | ( | — | ( | |||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | ( | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — June 30, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — March 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | — | ( | — | ( | |||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | ( | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — June 30, 2023 | $ | $ | $ | ( | $ | $ |
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — December 31, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | — | ( | — | ( | |||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | — | ( | |||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — June 30, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||
Common Stock | Treasury Stock | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||
BALANCE — December 31, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock to settle restricted stock units | — | — | ( | — | ( | ||||||||||||||||||
Treasury stock purchases | — | — | ( | — | ( | ||||||||||||||||||
Cash dividends on common stock - $ | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock option exercises and other | — | ( | |||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||
BALANCE — June 30, 2023 | $ | $ | $ | ( | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | ||||||||
Amortization of other intangibles | ||||||||
Amortization of debt issuance costs | ||||||||
Share-based compensation | ||||||||
Provision for credit losses | ||||||||
Deferred benefit for income taxes | ( | ( | ||||||
Loan forgiveness | ||||||||
Other | ||||||||
Changes in operating assets and liabilities: | ||||||||
Receivables from clients, net | ( | ( | ||||||
Receivables from brokers, dealers and clearing organizations | ( | |||||||
Advisor loans, net | ( | ( | ||||||
Other receivables, net | ( | |||||||
Investment securities - trading | ||||||||
Other assets | ( | ( | ||||||
Client payables | ( | ( | ||||||
Payables to brokers, dealers and clearing organizations | ( | |||||||
Accrued advisory and commission expenses payable | ( | |||||||
Accounts payable and accrued liabilities | ( | |||||||
Other liabilities | ( | |||||||
Operating lease assets | ( | ( | ||||||
Net cash provided by (used in) in operating activities | ( | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | ( | ( | ||||||
Acquisitions, net of cash acquired | ( | ( | ||||||
Purchases of securities classified as held-to-maturity | ( | ( | ||||||
Proceeds from maturities of securities classified as held-to-maturity | ||||||||
Net cash used in investing activities | ( | ( | ||||||
Continued on following page |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from revolving credit facilities | ||||||||
Repayments of revolving credit facilities | ( | ( | ||||||
Repayment of senior secured term loans | ( | ( | ||||||
Tax payments related to settlement of restricted stock units | ( | ( | ||||||
Repurchase of common stock | ( | ( | ||||||
Dividends on common stock | ( | ( | ||||||
Proceeds from stock option exercises and other | ||||||||
Principal payment of finance leases and obligations | ( | ( | ||||||
Net cash used in financing activities | ( | ( | ||||||
NET DECREASE IN CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH | ( | ( | ||||||
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — Beginning of period | ||||||||
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — End of period | $ | $ | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Interest paid | $ | $ | ||||||
Income taxes paid | $ | $ | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | ||||||
Cash paid for amounts included in the measurement of finance lease liabilities | $ | $ | ||||||
NONCASH DISCLOSURES: | ||||||||
Capital expenditures included in accounts payable and accrued liabilities | $ | $ | ||||||
Lease assets obtained in exchange for operating lease liabilities | $ | $ | ||||||
June 30, | ||||||||
2023 | 2022 | |||||||
Cash and equivalents | $ | $ | ||||||
Cash and equivalents segregated under federal or other regulations | ||||||||
Restricted cash | ||||||||
Total cash and equivalents, cash and equivalents segregated under federal or other regulations and restricted cash shown in the statements of cash flows | $ | $ | ||||||
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Commission revenue | ||||||||||||||
Annuities | $ | $ | $ | $ | ||||||||||
Mutual funds | ||||||||||||||
Fixed income | ||||||||||||||
Equities | ||||||||||||||
Other | ||||||||||||||
Total commission revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Commission revenue | ||||||||||||||
Trailing | ||||||||||||||
Annuities | $ | $ | $ | $ | ||||||||||
Mutual funds | ||||||||||||||
Other | ||||||||||||||
Total trailing revenue | $ | $ | $ | $ | ||||||||||
Sales-based | ||||||||||||||
Annuities | $ | $ | $ | $ | ||||||||||
Mutual funds | ||||||||||||||
Fixed income | ||||||||||||||
Equities | ||||||||||||||
Other | ||||||||||||||
Total sales-based revenue | $ | $ | $ | $ | ||||||||||
Total commission revenue | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Asset-based revenue | ||||||||||||||
Client cash | $ | $ | $ | $ | ||||||||||
Sponsorship programs | ||||||||||||||
Recordkeeping | ||||||||||||||
Total asset-based revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Service and fee revenue | ||||||||||||||
Over time(1) | $ | $ | $ | $ | ||||||||||
Point-in-time(2) | ||||||||||||||
Total service and fee revenue | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2023 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets | ||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Cash equivalents segregated under federal or other regulations | ||||||||||||||
Investment securities — trading: | ||||||||||||||
U.S. treasury obligations | ||||||||||||||
Mutual funds | ||||||||||||||
Equity securities | ||||||||||||||
Money market funds | ||||||||||||||
Debt securities | ||||||||||||||
Total investment securities — trading | ||||||||||||||
Other assets: | ||||||||||||||
Deferred compensation plan | ||||||||||||||
Fractional shares — investment(1) | ||||||||||||||
Other investments | ||||||||||||||
Total other assets: | ||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued liabilities(2) | $ | $ | $ | $ | ||||||||||
Other liabilities: | ||||||||||||||
Securities sold, but not yet purchased: | ||||||||||||||
Mutual funds | ||||||||||||||
Debt securities | ||||||||||||||
Equity securities | ||||||||||||||
Total securities sold, but not yet purchased | ||||||||||||||
Fractional shares — repurchase obligation(1) | ||||||||||||||
Total other liabilities | ||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
December 31, 2022 | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets | ||||||||||||||
Cash equivalents | $ | $ | $ | $ | ||||||||||
Cash equivalents segregated under federal or other regulations | ||||||||||||||
Investment securities — trading: | ||||||||||||||
U.S. treasury obligations | ||||||||||||||
Mutual funds | ||||||||||||||
Equity securities | ||||||||||||||
Debt securities | ||||||||||||||
Money market funds | ||||||||||||||
Total investment securities — trading | ||||||||||||||
Other assets: | ||||||||||||||
Deferred compensation plan | ||||||||||||||
Fractional shares — investment(1) | ||||||||||||||
Other investments | ||||||||||||||
Total other assets | ||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued liabilities | $ | $ | $ | $ | ||||||||||
Other liabilities: | ||||||||||||||
Securities sold, but not yet purchased: | ||||||||||||||
Debt securities | ||||||||||||||
Equity securities | ||||||||||||||
Mutual funds | ||||||||||||||
Total securities sold, but not yet purchased | ||||||||||||||
Fractional shares — repurchase obligation(1) | ||||||||||||||
Total other liabilities | ||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2023 | Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash | $ | $ | $ | $ | $ | ||||||||||||
Cash segregated under federal or other regulations | |||||||||||||||||
Restricted cash | |||||||||||||||||
Receivables from clients, net | |||||||||||||||||
Receivables from brokers, dealers and clearing organizations | |||||||||||||||||
Advisor repayable loans, net(1) | |||||||||||||||||
Other receivables, net | |||||||||||||||||
Investment securities — held-to-maturity securities | |||||||||||||||||
Other assets: | |||||||||||||||||
Securities borrowed | |||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||
Other investments(3) | |||||||||||||||||
Total other assets | |||||||||||||||||
Liabilities | |||||||||||||||||
Client payables | $ | $ | $ | $ | $ | ||||||||||||
Payables to brokers, dealers and clearing organizations | |||||||||||||||||
Corporate debt and other borrowings, net |
December 31, 2022 | Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash | $ | $ | $ | $ | $ | ||||||||||||
Cash segregated under federal or other regulations | |||||||||||||||||
Restricted cash | |||||||||||||||||
Receivables from clients, net | |||||||||||||||||
Receivables from brokers, dealers and clearing organizations | |||||||||||||||||
Advisor repayable loans, net(1) | |||||||||||||||||
Other receivables, net | |||||||||||||||||
Investment securities - held-to-maturity securities | |||||||||||||||||
Other assets: | |||||||||||||||||
Securities borrowed | |||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||
Other investments(3) | |||||||||||||||||
Total other assets | |||||||||||||||||
Liabilities | |||||||||||||||||
Client payables | $ | $ | $ | $ | $ | ||||||||||||
Payables to brokers, dealers and clearing organizations | |||||||||||||||||
Corporate debt and other borrowings, net |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2023 | December 31, 2022 | |||||||
Trading securities — at fair value: | ||||||||
U.S. treasury obligations | $ | $ | ||||||
Mutual funds | ||||||||
Equity securities | ||||||||
Money market funds | ||||||||
Debt securities | ||||||||
Total trading securities | $ | $ | ||||||
Held-to-maturity securities — at amortized cost: | ||||||||
U.S. government notes | $ | $ | ||||||
Total held-to-maturity securities | $ | $ | ||||||
Total investment securities | $ | $ |
Within one year | After one but within five years | After five but within ten years | After ten years | Total | |||||||||||||
U.S. government notes — at amortized cost | $ | $ | $ | $ | $ | ||||||||||||
U.S. government notes — at fair value | $ | $ | $ | $ | $ |
Balance at December 31, 2021 | $ | ||||
Goodwill acquired | |||||
Balance at December 31, 2022 | |||||
Goodwill acquired | |||||
Balance at June 30, 2023 | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Weighted-Average Life Remaining (in years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||
Definite-lived intangibles, net(1): | ||||||||||||||
Advisor and enterprise relationships | $ | $ | ( | $ | ||||||||||
Product sponsor relationships | ( | |||||||||||||
Client relationships | ( | |||||||||||||
Technology | ( | |||||||||||||
Total definite-lived intangible assets, net | $ | $ | ( | $ | ||||||||||
Other indefinite-lived intangibles: | ||||||||||||||
Trademark and trade name | ||||||||||||||
Total other intangibles, net | $ |
Weighted-Average Life Remaining (in years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||
Definite-lived intangibles, net: | ||||||||||||||
Advisor and enterprise relationships | $ | $ | ( | $ | ||||||||||
Product sponsor relationships | ( | |||||||||||||
Client relationships(1) | ( | |||||||||||||
Technology | ( | |||||||||||||
Total definite-lived intangibles, net | $ | $ | ( | $ | ||||||||||
Other indefinite-lived intangibles: | ||||||||||||||
Trademark and trade name | ||||||||||||||
Total other intangibles, net | $ |
2023 - remainder | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2023 | December 31, 2022 | |||||||
Other assets: | ||||||||
Deferred compensation | $ | $ | ||||||
Prepaid assets | ||||||||
Fractional shares — investment(1) | ||||||||
Deferred tax assets, net | ||||||||
Debt issuance costs, net | ||||||||
Other | ||||||||
Total other assets | $ | $ | ||||||
Other liabilities: | ||||||||
Deferred compensation | $ | $ | ||||||
Unearned revenue(2) | ||||||||
Fractional shares — repurchase obligation(1) | ||||||||
Other | ||||||||
Total other liabilities | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Corporate Debt | Balance | Applicable Margin | Interest Rate | Balance | Applicable Margin | Interest rate | Maturity | ||||||||||||||||
Term Loan B(1)(2) | $ | SOFR+ | % | $ | LIBOR+ | % | 11/12/2026 | ||||||||||||||||
2027 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 11/15/2027 | ||||||||||||||||||
2029 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 3/15/2029 | ||||||||||||||||||
2031 Senior Notes(1) | Fixed Rate | % | Fixed Rate | % | 5/15/2031 | ||||||||||||||||||
Total Corporate Debt | |||||||||||||||||||||||
Less: Unamortized Debt Issuance Cost | ( | ( | |||||||||||||||||||||
Corporate debt, net | $ | $ | |||||||||||||||||||||
Other Borrowings | |||||||||||||||||||||||
Revolving Credit Facility(2)(3) | ABR+ | % | LIBOR+ | % | 3/15/2026 | ||||||||||||||||||
Broker-Dealer Revolving Credit Facility | SOFR+ | % | SOFR+ | % | 8/3/2023 | ||||||||||||||||||
Unsecured, Uncommitted Lines of Credit | Rate Determined at Time of Borrowing | % | Rate Determined at Time of Borrowing | % | 9/30/2023 | ||||||||||||||||||
Total other borrowings | $ | $ | |||||||||||||||||||||
Corporate Debt and Other Borrowings, Net | $ | $ |
Description | Borrower | Maturity Date | Outstanding | Available | ||||||||||
Senior secured, revolving credit facility | LPL Holdings, Inc. | March 2026 | $ | $ | ||||||||||
Broker-dealer revolving credit facility | LPL Financial LLC | August 2023 | $ | $ | ||||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2023 | $ | $ | ||||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | September 2023 | $ | $ | ||||||||||
Unsecured, uncommitted lines of credit | LPL Financial LLC | None | $ | $ | ||||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | unspecified | ||||||||||
Secured, uncommitted lines of credit | LPL Financial LLC | None | $ | unspecified |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Beginning balance — January 1 | $ | $ | ||||||
Losses incurred | ||||||||
Losses paid | ( | ( | ||||||
Ending balance — June 30 | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
2023 | 2022 | |||||||||||||
Dividend per Share | Total Cash Dividend | Dividend per Share | Total Cash Dividend | |||||||||||
First quarter | $ | $ | $ | $ | ||||||||||
Second quarter | $ | $ | $ | $ | ||||||||||
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Number of Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (In thousands) | |||||||||||
Outstanding — December 31, 2022 | $ | |||||||||||||
Granted | $ | |||||||||||||
Exercised | ( | $ | ||||||||||||
Forfeited and Expired | $ | |||||||||||||
Outstanding — June 30, 2023 | $ | $ | ||||||||||||
Exercisable — June 30, 2023 | $ | $ | ||||||||||||
Exercisable and expected to vest — June 30, 2023 | $ | $ |
Outstanding | Exercisable | ||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Life (Years) | Number of Shares | Weighted- Average Exercise Price | ||||||||||||
$19.85 - $25.00 | $ | $ | |||||||||||||||
$25.01 - $35.00 | $ | $ | |||||||||||||||
$35.01 - $45.00 | $ | $ | |||||||||||||||
$45.01 - $65.00 | $ | $ | |||||||||||||||
$65.01 - $75.00 | $ | $ | |||||||||||||||
$75.01 - $80.00 | $ | $ | |||||||||||||||
$ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Restricted Stock Awards | Stock Units | ||||||||||||||||
Number of Shares | Weighted-Average Grant-Date Fair Value | Number of Units | Weighted-Average Grant-Date Fair Value | ||||||||||||||
Outstanding — December 31, 2022 | $ | $ | |||||||||||||||
Granted | $ | $ | |||||||||||||||
Vested | ( | $ | ( | $ | |||||||||||||
Forfeited | $ | ( | $ | ||||||||||||||
Outstanding — June 30, 2023 | $ | (1) | $ | ||||||||||||||
Expected to vest — June 30, 2023 | $ | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Basic weighted-average number of shares outstanding | ||||||||||||||
Dilutive common share equivalents | ||||||||||||||
Diluted weighted-average number of shares outstanding | ||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||
Diluted earnings per share | $ | $ | $ | $ |
June 30, 2023 | |||||
LPL Financial LLC | |||||
Net capital | $ | ||||
Less: required net capital | |||||
Excess net capital | $ |
LPL FINANCIAL HOLDINGS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) |
Outstanding Balance at June 30, 2023 | Annual Impact of an Interest Rate(†) Increase of | ||||||||||||||||
10 Basis | 25 Basis | 50 Basis | 100 Basis | ||||||||||||||
Corporate Debt and Other Borrowings | Points | Points | Points | Points | |||||||||||||
Term Loan B | $ | 1,032,550 | $ | 1,026 | $ | 2,565 | $ | 5,129 | $ | 10,259 | |||||||
Revolving Credit Facility | 287,000 | 287 | 718 | 1,435 | 2,870 | ||||||||||||
Variable Rate Debt Outstanding | $ | 1,319,550 | $ | 1,313 | $ | 3,283 | $ | 6,564 | $ | 13,129 |
Period | Total Number of Shares Purchased | Weighted-Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (millions)(1) | ||||||||||
April 1, 2023 through April 30, 2023 | 745,002 | $ | 199.66 | 745,002 | $ | 1,576.3 | ||||||||
May 1, 2023 through May 31, 2023 | 900,213 | $ | 194.36 | 900,213 | $ | 1,401.3 | ||||||||
June 1, 2023 through June 30, 2023 | 131,908 | $ | 199.52 | 131,908 | $ | 1,375.0 | ||||||||
Total | 1,777,123 | 1,777,123 |
Officer | Date of Plan Adoption | Commencement of Trading Period | Termination of Trading Period(1) | Maximum Number of Securities to be Purchased or Sold Pursuant to the Rule 10b5-1 Trading Arrangements | Purchase or Sale | ||||||||||||
September 13, 2023 | December 13, 2023 | Sale | |||||||||||||||
August 22, 2023 | December 1, 2023 | Sale | |||||||||||||||
September 13, 2023 | September 20, 2023 | Sale |
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition* | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. | |||||||
** | Furnished herewith. |
LPL Financial Holdings Inc. | |||||||||||
Date: | August 1, 2023 | By: | /s/ DAN H. ARNOLD | ||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer | |||||||||||
Date: | August 1, 2023 | By: | /s/ MATTHEW J. AUDETTE | ||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer | |||||||||||
/s/ Dan H. Arnold | |||||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer (principal executive officer) |
/s/ Matthew J. Audette | |||||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer (principal financial officer) |
/s/ Dan H. Arnold | |||||||||||
Dan H. Arnold | |||||||||||
President and Chief Executive Officer |
/s/ Matthew J. Audette | |||||||||||
Matthew J. Audette | |||||||||||
Chief Financial Officer |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
REVENUES: | ||||
Advisory | $ 1,014,565 | $ 1,001,851 | $ 1,968,622 | $ 2,048,948 |
Commission | 622,886 | 573,376 | 1,226,611 | 1,158,901 |
Asset-based | 589,715 | 363,597 | 1,211,463 | 659,998 |
Service and fee | 123,122 | 112,802 | 242,109 | 225,614 |
Transaction and fee | 46,936 | 44,416 | 95,871 | 91,142 |
Interest Income | 37,972 | 10,121 | 75,330 | 17,866 |
Other | 33,608 | (67,276) | 66,630 | (97,889) |
Total net revenues | 2,468,804 | 2,038,887 | 4,886,636 | 4,104,580 |
EXPENSES: | ||||
Advisory and commission | 1,448,763 | 1,304,422 | 2,819,397 | 2,678,556 |
Compensation and benefits | 231,680 | 196,699 | 465,213 | 388,733 |
Promotional | 102,565 | 78,027 | 200,788 | 165,029 |
Occupancy and equipment | 65,005 | 55,906 | 125,178 | 107,018 |
Depreciation and amortization | 58,377 | 48,453 | 114,431 | 93,907 |
Interest Expense, Debt | 44,842 | 28,755 | 84,026 | 55,966 |
Brokerage, clearing and exchange | 29,148 | 23,362 | 55,274 | 45,962 |
Amortization of intangible assets | 26,741 | 21,168 | 50,833 | 42,364 |
Professional services | 18,092 | 17,290 | 32,312 | 36,312 |
Communications and data processing | 20,594 | 16,223 | 38,269 | 31,350 |
Other | 34,178 | 36,261 | 67,599 | 73,683 |
Costs and Expenses, Total | 2,079,985 | 1,826,566 | 4,053,320 | 3,718,880 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 388,819 | 212,321 | 833,316 | 385,700 |
PROVISION FOR INCOME TAXES | 103,299 | 51,776 | 208,912 | 91,411 |
NET INCOME | $ 285,520 | $ 160,545 | $ 624,404 | $ 294,289 |
EARNINGS PER SHARE | ||||
Earnings per share, basic | $ 3.70 | $ 2.01 | $ 8.01 | $ 3.68 |
Earnings per share, diluted | $ 3.65 | $ 1.97 | $ 7.90 | $ 3.61 |
Weighted-average shares outstanding, basic | 77,234 | 79,947 | 77,988 | 79,961 |
Weighted-average shares outstanding, diluted | 78,194 | 81,410 | 79,083 | 81,493 |
Client cash | ||||
REVENUES: | ||||
Asset-based | $ 378,415 | $ 154,700 | $ 796,690 | $ 239,416 |
Other asset-based | ||||
REVENUES: | ||||
Asset-based | 211,300 | 208,897 | 414,773 | 420,582 |
Trailing | ||||
REVENUES: | ||||
Commission | 323,925 | 320,883 | 641,578 | 666,077 |
Sales-based | ||||
REVENUES: | ||||
Commission | $ 298,961 | $ 252,493 | $ 585,033 | $ 492,824 |
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 130,141,562 | 129,655,843 |
Treasury stock, shares | 53,515,229 | 50,407,844 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.60 | $ 0.50 |
Condensed Consolidated Statements of Cash Flows (Unaudited) cash, cash equivalent and restricted cash reconciliation - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 761,187 | $ 847,519 | $ 700,395 | |
Cash segregated under federal and other regulations | 1,548,065 | 2,199,362 | 863,500 | |
Restricted cash | 103,741 | 90,389 | 89,833 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 2,412,993 | $ 3,137,270 | $ 1,653,728 | $ 2,072,364 |
Organization and Description of the Company |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Company | ORGANIZATION AND DESCRIPTION OF THE COMPANY LPL Financial Holdings Inc. (“LPLFH”), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “Company”), provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at enterprises (collectively, “advisors”) in the United States. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer personalized financial advice and brokerage services to retail investors (their “clients”). The Company’s most significant, wholly owned subsidiaries are described below: •LPL Holdings, Inc. (“LPLH” or “Parent”) is an intermediate holding company and directly or indirectly owns 100% of the issued and outstanding equity interests of all of LPLFH’s indirect subsidiaries, including a captive insurance subsidiary (the “Captive Insurance Subsidiary”) that underwrites insurance for various legal and regulatory risks of the Company. •LPL Financial LLC (“LPL Financial”), with primary offices in San Diego, California; Fort Mill, South Carolina; Boston, Massachusetts; and Austin, Texas, is a clearing broker-dealer and an investment advisor that principally transacts business as an agent for its advisors and enterprises on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands. •Fortigent Holdings Company, Inc. and its subsidiaries provide solutions and consulting services to registered investment advisors (“RIAs”), banks and trust companies serving high-net-worth clients. •LPL Insurance Associates, Inc. operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors. •AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC (“Blaze”). AdvisoryWorld offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. Blaze provides an advisor-facing trading and portfolio rebalancing platform. •PTC Holdings, Inc. (“PTCH”) is a holding company for The Private Trust Company, N.A. (“PTC”). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight and custodial services for estates and families. PTC, together with its affiliate Fiduciary Trust Company of New Hampshire, also provides Individual Retirement Account (“IRA”) custodial services for LPL Financial. Each member of PTCH’s Board of Directors meets the direct equity ownership interest requirements that are required by the Office of the Comptroller of the Currency (“OCC”). •LPL Employee Services, LLC and its subsidiary, Allen & Company of Florida, LLC, along with their affiliate Financial Resources Group Investment Services, LLC (“FRGIS”), provide primary support for the Company’s employee advisor affiliation model.
|
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2022, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”). Recently Issued or Adopted Accounting Pronouncements There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the six months ended June 30, 2023 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | REVENUE Commission The following table presents total commission revenue disaggregated by product category (in thousands):
The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
Asset-Based The following table sets forth asset-based revenue disaggregated by product category (in thousands):
Service and Fee The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
_______________________________ (1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees and technology fees. (2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, registration and account fees. Unearned Revenue The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. Unearned revenue increased from $138.1 million as of December 31, 2022 to $173.0 million as of June 30, 2023. The increase in unearned revenue for the six months ended June 30, 2023 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, partially offset by $136.4 million of revenue recognized during the six months ended June 30, 2023 that was included in the unearned revenue balance as of December 31, 2022. The Company receives cash in advance for advisory services to be performed and conferences to be held in future periods. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held.
|
Acquisitions |
3 Months Ended |
---|---|
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Financial Resources Group Investment Services, LLC On January 31, 2023, the Company acquired Financial Resources Group Investment Services, LLC, a broker-dealer and independent branch office, in order to expand its addressable markets and complement organic growth. The transaction closed on January 31, 2023 for an initial payment of approximately $140 million with potential contingent payments over the three years following the closing. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. At June 30, 2023, the Company had provisionally allocated $129.7 million of the purchase price to goodwill, $53.5 million to definite-lived intangible assets, $45.4 million to liabilities for contingent consideration, $9.0 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill primarily includes synergies expected to result from combining operations and is deductible for tax purposes. The intangible assets are comprised of $34.7 million of bank relationships and $18.8 million of advisor relationships, which were valued using the income approach and are included in the Advisor and enterprise relationships line item in Note 7 - Goodwill and Other Intangibles, Net. The fair value determination of bank and advisor relationships required the Company to make significant estimates and assumptions related to future net cash flows and discount rates. Other Acquisitions During the six months ended June 30, 2023, the Company also allocated $171.1 million to intangible assets acquired under its Liquidity & Succession solution and as part of the acquisition of Boenning & Scattergood’s Private Client Group on January 31, 2023. These transactions include potential contingent payments of up to $91.6 million, which may become payable over the next five years. The Company has not recognized a liability for these contingent payments as the amounts to be paid will be uncertain until a future measurement date. See Note 7 - Goodwill and Other Intangibles, Net, for additional information.
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There have been no transfers of assets or liabilities between these fair value measurement classifications during the six months ended June 30, 2023 or 2022. The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of inputs used to determine the fair value at the measurement date. At June 30, 2023 and December 31, 2022, the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis: Cash Equivalents — The Company’s cash equivalents include money market funds and U.S. government obligations, which are short term in nature with readily determinable values derived from active markets. Cash Equivalents Segregated Under Federal or Other Regulations — The Company’s cash equivalents segregated under federal or other regulations include U.S. treasury bills, which are short term in nature with readily determinable values derived from active markets. Trading Securities and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For negotiable certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At June 30, 2023 and December 31, 2022, the Company did not adjust prices received from the independent third-party pricing services. Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in life insurance, money market and other mutual funds, which are actively traded and valued based on quoted market prices; and (2) certain non-traded real estate investment trusts and auction rate notes, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data. Fractional Shares — The Company’s investment in fractional shares held by customers is reflected in other assets while the related purchase obligation for such shares is reflected in other liabilities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its investment in fractional shares held by customers and the related repurchase obligation. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. At June 30, 2023 and December 31, 2022, the Company did not adjust prices received from the independent third-party pricing services. Accounts Payable and Accrued Liabilities — The Company’s accounts payable and accrued liabilities include contingent consideration liabilities that are measured using Level 3 inputs. Level 3 Recurring Fair Value Measurements The Company determines the fair value for its contingent consideration obligations using a scenario-based approach whereby the Company assesses the forecasted assets under management or number of future transactions. The contingent payments are estimated by applying assumptions, including forecasted volatility and discount rates, to the forecasted payments to calculate the fair value as of the valuation date. The Company evaluates the underlying projections and other related factors used in determining fair value each period and makes updates when there have been significant changes in management’s expectations. Recurring Fair Value Measurements The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”). (2)Includes contingent consideration liabilities recorded in connection with acquisitions. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. Fair Value of Financial Instruments Not Measured at Fair Value The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2)Includes cash balances awaiting investment or distribution to plan participants. (3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
|
Investment Securities |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The Company’s investment securities include debt and equity securities that the Company has classified as trading securities, which are carried at fair value, as well as investments in U.S. government notes, which are held by The Private Trust Company, N.A. to satisfy minimum capital requirements of the OCC. These securities are recorded at amortized cost and classified as held-to-maturity as the Company has both the intent and ability to hold these investments to maturity. The following table summarizes investment securities (in thousands):
At June 30, 2023, the held-to-maturity securities were scheduled to mature as follows (in thousands):
|
Goodwill and Other Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLES, NET On January 31, 2023, the Company acquired Financial Resources Group Investment Services, LLC. See Note 4 - Acquisitions, for additional information. A summary of the activity impacting goodwill is presented below (in thousands):
The components of other intangibles, net were as follows at June 30, 2023 (in thousands):
_______________________________ (1)During the six months ended June 30, 2023, the Company allocated $171.1 million to intangible assets acquired under its Liquidity & Succession solution and the acquisition of Boenning & Scattergood’s Private Client Group. These intangible assets were comprised primarily of customer relationships with an assigned useful life of 14 years. The components of other intangibles, net were as follows at December 31, 2022 (in thousands):
_______________________________ (1)During the year ended December 31, 2022, the Company acquired client relationship intangible assets of $54.1 million as a result of acquisitions under its Liquidity & Succession solution. These acquisitions were accounted for as asset acquisitions with an assigned useful life of 9 years. Total amortization of other intangibles was $26.7 million and $21.2 million for the three months ended June 30, 2023 and 2022, respectively, and $50.8 million and $42.4 million for the six months ended June 30, 2023 and 2022, respectively. Future amortization is estimated as follows (in thousands):
|
Other Assert and Other Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets And Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Other Liabilities | OTHER ASSETS AND OTHER LIABILITIES The components of other assets and other liabilities were as follows (dollars in thousands):
_______________________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program. (2)See Note 3 - Revenue for further information.
|
Corporate Debt and Other Borrowings, Net |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt and Other Borrowings, Net | CORPORATE DEBT AND OTHER BORROWINGS, NET The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
_______________________________ (1)No leverage or interest coverage maintenance covenants. (2)In March 2023, the Company amended its Credit Agreement to transition the Parent Revolving Credit Facility and Term Loan B from London Interbank Offered Rate (“LIBOR”)-based to Secured Overnight Financing Rate (“SOFR”)-based interest rates, which became effective in March and April 2023, respectively. (3)The Parent’s outstanding balance at June 30, 2023 was comprised of an alternate base rate (“ABR”)-based balance of $128.0 million with the applicable margin of ABR + 25 bps (8.500%) and a SOFR-based balance of $159.0 million with the applicable margin of SOFR + 135 bps (6.448%). The following table presents amounts outstanding and available under the Company’s external lines of credit at June 30, 2023 (in millions):
Credit Agreement On March 13, 2023, LPLFH and LPLH entered into a sixth amendment agreement to the Company’s amended and restated credit agreement (the “Credit Agreement”), which, among other things, replaced LIBOR with SOFR. The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of June 30, 2023, the Company was in compliance with such covenants. Parent Revolving Credit Facility Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 125 to 175 basis points over SOFR plus 10 basis points or 25 to 75 basis points over the alternate base rate (the greatest of (i) the NYFRB Rate plus 1/2 of 1%, (ii) the Prime Rate and (iii) the Adjusted Term SOFR Rate for a one month Interest Period plus 1%, each as defined in the Credit Agreement) depending on the Consolidated Secured Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement). On July 18, 2023, LPLH amended its revolving credit facility to, among other things, increase the maximum borrowing from $1.0 billion to $2.0 billion. Broker-Dealer Revolving Credit Facility On August 4, 2022, LPL Financial, the Company’s broker-dealer subsidiary, entered into a committed senior unsecured revolving credit facility that matures on August 3, 2023 and allows for a maximum borrowing of up to $1.0 billion. Borrowings under the credit facility bear interest at a rate per annum equal to 1.25% per annum plus the greatest of (i) SOFR plus 0.10%, (ii) the effective federal funds rate and (iii) the overnight bank funding rate, in each case, as such rate is administered or determined by the Federal Reserve Bank of New York from time to time. In connection with the credit facility, LPL Financial incurred $1.9 million in costs, which were capitalized as debt issuance costs in the condensed consolidated statements of financial condition. The broker-dealer credit agreement subjects LPL Financial to certain financial and non-financial covenants. LPL Financial was in compliance with such covenants as of June 30, 2023. On July 18, 2023, LPL Financial renewed its revolving credit facility and extended the maturity date to July 16, 2024. Other External Lines of Credit LPL Financial maintained five uncommitted lines of credit as of June 30, 2023. Two of the lines have unspecified limits, which are primarily dependent on LPL Financial’s ability to provide sufficient collateral. The other three lines have a total limit of $200.0 million, which allow for uncollateralized borrowings. There were no balances outstanding under these lines at June 30, 2023 or December 31, 2022.
|
Commitments and Contingencies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Service and Development Contracts The Company is party to certain long-term contracts for systems and services that enable back-office trade processing and clearing for its product and service offerings. Guarantees The Company occasionally enters into contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts. LPL Financial provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions. Loan Commitments From time to time, LPL Financial makes loans to advisors and enterprises, primarily to newly recruited advisors and enterprises to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor or enterprise joining LPL Financial. LPL Financial had no significant unfunded loan commitments at June 30, 2023 or December 31, 2022. Legal and Regulatory Matters The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its condensed consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company’s assessment process considers a variety of factors and assumptions, which may include: the procedural status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; or the potential opportunities for settlement and the status of any settlement discussions. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated. In October 2022, the Company received a request for information from the SEC in connection with an investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices or messaging platforms that have not been approved by the Company. The Company intends to cooperate fully with the SEC’s inquiry. The Company has estimated that it is reasonably possible that it could incur losses as a result of this request; however, the Company cannot estimate a possible loss or range of loss at this time. At this time, the Company does not believe that this request will have a material adverse effect on its results of operations, financial position or cash flows. Third-Party Insurance The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies. Self-Insurance The Company has self-insurance for certain potential liabilities through the Captive Insurance Subsidiary. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and actuarial assumptions and estimates. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. Self-insurance liabilities are included in accounts payable and accrued liabilities in the condensed consolidated statements of financial condition. Self-insurance related charges are included in other expense in the condensed consolidated statements of income. The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
Other Commitments As of June 30, 2023, the Company had approximately $472.0 million of client margin loans that were collateralized with securities having a fair value of approximately $660.8 million that LPL Financial can repledge, loan or sell. Of these securities, approximately $249.9 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of June 30, 2023, there were no restrictions that materially limited the Company’s ability to repledge, loan or sell the remaining $410.9 million of client collateral. Investment securities on the condensed consolidated statements of financial condition include $4.5 million of trading securities pledged to the Options Clearing Corporation at both June 30, 2023 and December 31, 2022, and $19.9 million of trading securities pledged to the National Securities Clearing Corporation at both June 30, 2023 and December 31, 2022.
|
Stockholders' Equity |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY Dividends The payment, timing and amount of any dividends are subject to approval by LPLFH’s Board of Directors (the “Board”) as well as certain limits under the Credit Agreement and the indentures governing the Company’s senior unsecured notes (the “Indentures”). Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
Share Repurchases The Company engages in a share repurchase program that was approved by the Board, pursuant to which LPLFH may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the condensed consolidated statements of financial condition. During the six months ended June 30, 2023 LPLFH repurchased 2,982,985 shares of common stock at a weighted-average price of $209.54 for a total of $625 million. The Company also recognized $5.4 million of excise tax in connection with these repurchases during the six months ended June 30, 2023. As of June 30, 2023, the Company had $1.4 billion remaining under the existing share repurchase program. Future share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Credit Agreement, the Indentures and the Company’s general working capital needs.
|
Share-Based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | SHARE-BASED COMPENSATION In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable. There were 17,754,197 shares authorized for grant under the 2021 Plan and 12,818,635 shares remaining available for future issuance at June 30, 2023. Stock Options and Warrants The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the six months ended June 30, 2023:
The following table summarizes information about outstanding stock options and warrants as of June 30, 2023:
The Company recognized no share-based compensation expense related to the vesting of stock options awarded to employees and officers during the three months ended June 30, 2023 and 2022, no expense during the six months ended June 30, 2023, and $0.2 million of expense during the six months ended June 30, 2022. As of June 30, 2023, there was no unrecognized compensation cost related to non-vested stock options as the remaining share-based compensation expense was recognized during the three months ended March 31, 2022. Restricted Stock and Stock Units The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the six months ended June 30, 2023:
_______________________________ (1) Includes 90,167 vested and undistributed deferred stock units. The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $14.6 million and $12.8 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the three months ended June 30, 2023 and 2022, respectively, and $30.8 million and $24.7 million during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, total unrecognized compensation cost for restricted stock awards and stock units was $100.6 million, which is expected to be recognized over a weighted-average remaining period of 2.18 years. The Company also grants restricted stock units to its advisors and to enterprises. The Company recognized share-based compensation expense of $0.6 million related to the vesting of these awards during each of the three months ended June 30, 2023 and 2022 and $1.3 million and $1.2 million during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, total unrecognized compensation cost for restricted stock units granted to advisors and enterprises was $3.6 million, which is expected to be recognized over a weighted-average remaining period of 1.81 years.
|
Earnings per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
The computation of diluted earnings per share excludes stock options, warrants and stock units that are anti-dilutive. For the three months ended June 30, 2023 and 2022, stock options, warrants and stock units representing common share equivalents of 208,654 shares and 142 shares, respectively, were anti-dilutive. For the six months ended June 30, 2023 and 2022, stock options, warrants and stock units representing common share equivalents of 107,544 shares and 2,001 shares, respectively, were anti-dilutive.
|
Net Capital and Regulatory Requirements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Broker-Dealer [Abstract] | |||||||||||||||||||||||||||||||||||||
Net Capital and Regulatory Requirements | NET CAPITAL AND REGULATORY REQUIREMENTS The Company’s broker-dealer subsidiaries are subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act of 1934, as amended), which requires the maintenance of minimum net capital. The net capital rules also provide that a broker-dealer’s capital may not be withdrawn if the resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and the Financial Industry Regulatory Authority (“FINRA”) to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis. The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
The Company’s subsidiary, PTC, also operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations. As of June 30, 2023, LPL Financial and PTC met all capital adequacy requirements to which they were subject.
|
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK AND CONCENTRATIONS OF CREDIT RISK LPL Financial may offer loans to new and existing advisors and enterprises to facilitate their relationship with LPL Financial, transition to LPL Financial’s platform or fund business development activities. LPL Financial may incur losses if advisors or enterprises do not fulfill their obligations with respect to these loans. To mitigate this risk, LPL Financial evaluates the performance and creditworthiness of the advisor or enterprise prior to offering repayable loans. LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor’s client, subject to various regulatory and internal margin requirements, which is collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary. LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors’ clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when-issued securities. When-issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order. LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the condensed consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial.
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSThe Board declared a cash dividend of $0.30 per share on LPLFH’s outstanding common stock to be paid on August 25, 2023 to all stockholders of record on August 11, 2023. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Pay vs Performance Disclosure | ||||
Net income | $ 285,520 | $ 160,545 | $ 624,404 | $ 294,289 |
Insider Trading Arrangements |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023
shares
|
Jun. 30, 2023
shares
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dan Arnold [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Dan Arnold, President and Chief Executive Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Dan Arnold, President and Chief Executive Officer | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | June 9, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 91 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 20,000 | 20,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Matthew Enyedi [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Matthew Enyedi, Managing Director, Client Success | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Matthew Enyedi, Managing Director, Client Success | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | May 24, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 231 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 4,646 | 4,646 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Richard Steinmeier [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Richard Steinmeier, Managing Director, Divisional President, Business Development | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Richard Steinmeier, Managing Director, Divisional President, Business Development | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | June 14, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 182 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 13,511 | 13,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Officer Trading Arrangement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | During the three months ended June 30, 2023, certain of our officers (as defined in Rule 16a-1(f) under the Exchange Act) entered into contracts, instructions or written plans for the purchase or sale of our common stock that are intended to satisfy the affirmative defense conditions specified in Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 trading arrangements”). The table below sets forth certain information regarding such Rule 10b5-1 trading arrangements:
(1) Represents the outside termination date pursuant to terms of each applicable plan. The agreement governing the applicable plan may terminate earlier pursuant to its terms in certain circumstances outside of the control of the applicable officer, including if all trades under the plan are completed prior to the termination of the trading period.
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements (“condensed consolidated financial statements”) are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the condensed consolidated financial statements and related disclosures. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2022, contained in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”).
|
Recently Issued & Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements There are no relevant recently issued accounting pronouncements that would materially impact the Company’s condensed consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the six months ended June 30, 2023 that materially impacted the Company’s condensed consolidated financial statements and related disclosures.
|
Revenue (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Reporting Category [Table Text Block] | The following table presents total commission revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Reporting Category & Timing of Transfer of Good or Service [Table Text Block] | The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Product and Service [Table Text Block] | The following table sets forth asset-based revenue disaggregated by product category (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue - Timing of Transfer of Good or Service [Table Text Block] | The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands):
_______________________________ (1)Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees and technology fees. (2)Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, registration and account fees.
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s dividend reinvestment program (“DRIP”). (2)Includes contingent consideration liabilities recorded in connection with acquisitions. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands):
____________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands):
(1)Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2)Includes cash balances awaiting investment or distribution to plan participants. (3)Other investments include Depository Trust Company common shares and Federal Reserve stock.
|
Investment Securities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Trading, and Equity Securities, FV-NI | The following table summarizes investment securities (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of securities held-to-maturity | At June 30, 2023, the held-to-maturity securities were scheduled to mature as follows (in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in goodwill | A summary of the activity impacting goodwill is presented below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of intangible assets | The components of other intangibles, net were as follows at June 30, 2023 (in thousands):
_______________________________ (1)During the six months ended June 30, 2023, the Company allocated $171.1 million to intangible assets acquired under its Liquidity & Succession solution and the acquisition of Boenning & Scattergood’s Private Client Group. These intangible assets were comprised primarily of customer relationships with an assigned useful life of 14 years. The components of other intangibles, net were as follows at December 31, 2022 (in thousands):
_______________________________ (1)During the year ended December 31, 2022, the Company acquired client relationship intangible assets of $54.1 million as a result of acquisitions under its Liquidity & Succession solution. These acquisitions were accounted for as asset acquisitions with an assigned useful life of 9 years.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense | Future amortization is estimated as follows (in thousands):
|
Other Assert and Other Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets And Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other assets and other liabilities | The components of other assets and other liabilities were as follows (dollars in thousands):
_______________________________ (1)Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP program. (2)See Note 3 - Revenue for further information.
|
Corporate Debt and Other Borrowings, Net (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term and Other Borrowings | The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands):
_______________________________ (1)No leverage or interest coverage maintenance covenants. (2)In March 2023, the Company amended its Credit Agreement to transition the Parent Revolving Credit Facility and Term Loan B from London Interbank Offered Rate (“LIBOR”)-based to Secured Overnight Financing Rate (“SOFR”)-based interest rates, which became effective in March and April 2023, respectively. (3)The Parent’s outstanding balance at June 30, 2023 was comprised of an alternate base rate (“ABR”)-based balance of $128.0 million with the applicable margin of ABR + 25 bps (8.500%) and a SOFR-based balance of $159.0 million with the applicable margin of SOFR + 135 bps (6.448%). The following table presents amounts outstanding and available under the Company’s external lines of credit at June 30, 2023 (in millions):
|
Commitment and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Guarantee Insurance Contracts, Claim Liability | The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the periods presented (in thousands):
|
Stockholders' Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data):
|
Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock option and warrant activity | The following table summarizes the Company’s stock option and warrant activity as of and for the six months ended June 30, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding stock options and warrant information | The following table summarizes information about outstanding stock options and warrants as of June 30, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock awards and restricted stock units activity | The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, as of and for the six months ended June 30, 2023:
_______________________________ (1) Includes 90,167 vested and undistributed deferred stock units.
|
Earnings per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share computations | The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data):
|
Net Capital and Regulatory Requirements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Broker-Dealer [Abstract] | |||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation | The following table presents the net capital position of the Company’s primary broker-dealer subsidiary (in thousands):
|
Organization and Description of the Company Consolidation, Parent Ownership Interest (Details) - LPL Financial LLC [Member] |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership Interest Percentage In Subsidiary | 100.00% |
Number of States in which Entity Operates | 50 |
Revenue - Asset-based Revenue disaggregated by Product and Service (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | $ 589,715 | $ 363,597 | $ 1,211,463 | $ 659,998 |
Client cash | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | 378,415 | 154,700 | 796,690 | 239,416 |
Sponsorship Programs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | 109,256 | 104,593 | 211,726 | 205,975 |
Recordkeeping Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | $ 102,044 | $ 104,304 | $ 203,047 | $ 214,607 |
Revenue - Commission Revenue Disaggregated by Product Category (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Commission | $ 622,886 | $ 573,376 | $ 1,226,611 | $ 1,158,901 |
Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Commission | 358,845 | 311,263 | 702,906 | 610,997 |
Mutual Funds [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Commission | 165,194 | 168,234 | 330,232 | 357,761 |
Fixed Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Commission | 36,183 | 29,013 | 71,450 | 54,218 |
Equities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Commission | 27,474 | 29,909 | 53,364 | 64,542 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Commission | $ 35,190 | $ 34,957 | $ 68,659 | $ 71,383 |
Revenue - Transaction and Fee Revenue Disaggregated by Timing of Transfer of Good or Service (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Service and fee | $ 123,122 | $ 112,802 | $ 242,109 | $ 225,614 |
Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service and fee | 28,535 | 24,061 | 54,493 | 55,868 |
Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Service and fee | $ 94,587 | $ 88,741 | $ 187,616 | $ 169,746 |
Revenue - Unearned Revenue Recognized (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Unearned Revenue [Abstract] | ||
Contract with Customer, Liability | $ 173.0 | $ 138.1 |
Deferred Revenue, Revenue Recognized | $ 136.4 |
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,642,468 | $ 1,642,443 |
Goodwill acquired | 129,694 | 25 |
Goodwill, ending balance | $ 1,772,162 | $ 1,642,468 |
Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Future amortization expense | ||
Remainder of Fiscal Year | $ 51,664 | |
Due Year One | 102,986 | |
Due Year Two | 94,613 | |
Due Year Three | 56,356 | |
Due Year Four | 51,207 | |
Due after Year Four | 209,535 | |
Net Carrying Value | $ 566,361 | $ 387,857 |
Other Assert and Other Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other assets: | ||
Deferred compensation | $ 595,428 | $ 496,319 |
Fractional shares - investment | 147,084 | 122,253 |
Prepaid assets | 136,457 | 144,607 |
Operating lease assets | 94,830 | 92,534 |
Debt issuance costs, net | 4,413 | 6,422 |
Deferred Income Tax Assets, Net | 99,139 | 98,997 |
Other | 75,749 | 62,098 |
Total other assets | $ 1,153,100 | $ 1,023,230 |
Operating lease assets [Extensible List] | Total other assets | Total other assets |
Other liabilities: | ||
Deferred compensation | $ 595,946 | $ 497,736 |
Unearned revenue | 172,957 | 138,109 |
Operating lease liabilities | 126,034 | 125,280 |
Fractional shares - repurchase obligation | 147,084 | 122,253 |
Finance lease liabilities | 105,542 | 105,660 |
Other | 247,420 | 113,589 |
Total other liabilities | $ 1,394,983 | $ 1,102,627 |
Operating lease liabilities [Extensible List] | Total other liabilities | Total other liabilities |
Finance lease liabilities [Extensible List] | Total other liabilities | Total other liabilities |
Corporate Debt and Other Borrowings, Net (Credit Agreement Textuals) (Details) - USD ($) $ in Billions |
Jul. 18, 2023 |
Jul. 17, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Revolving Credit Facility [Member] | Subsequent Event | ||||
Borrowings [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 2.0 | $ 1.0 | ||
Unsecured Debt [Member] | Senior Notes Due 2029 | ||||
Borrowings [Line Items] | ||||
Fixed Interest Rate (as percent) | 4.00% | 4.00% | ||
Unsecured Debt [Member] | Senior Notes Due 2027 [Member] | ||||
Borrowings [Line Items] | ||||
Fixed Interest Rate (as percent) | 4.625% | 4.625% | ||
Unsecured Debt [Member] | Senior Notes Due 2031 | ||||
Borrowings [Line Items] | ||||
Fixed Interest Rate (as percent) | 4.375% | 4.375% |
Commitments and Contingencies (Other Commitments) (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Broker-Dealer [Abstract] | |
Collateral securities | $ 472,000 |
Collateral security (Fair value) | 660,800 |
Amount pledged with client-owned securities | 249,900 |
Remaining collateral securities that can be re-pledged, loaned, or sold | 410,900 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Remaining collateral securities that can be re-pledged, loaned, or sold | 410,900 |
Options Clearing Corporation [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Marketable Securities | 4,500 |
National Securities Clearing Corporation [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Marketable Securities | $ 19,900 |
Commitments and Contingencies - Self insurance Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Self-Insurance Liability [Roll Forward] | ||
Self-insurance liability, beginning balance | $ 81,740 | $ 73,746 |
Losses incurred | 18,093 | 18,251 |
Losses paid | (10,424) | (11,657) |
Self-insurance liability, ending balance | $ 74,071 | $ 67,152 |
Stockholders' Equity (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | ||
Dividends, Common Stock [Abstract] | ||||||
Cash dividends on common stock | $ 23,139 | $ 23,600 | $ 19,982 | $ 20,000 | $ 46,723 | $ 39,995 |
Stockholdes' Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Stockholders' Equity Note [Abstract] | ||||
Amount Remaining | $ 1,400,000 | $ 1,400,000 | ||
Treasury stock purchased | $ 353,405 | $ 50,005 | $ 630,458 | $ 100,011 |
Shares Purchased | 2,982,985 | |||
Weighted-Average Price Paid Per Share | $ 209.54 | |||
Document Period End Date | Jun. 30, 2023 | |||
Treasury Stock, Valued, Acquired, Excluding Excise Tax | $ 625,000 | |||
Excise taxes | $ 5,400 |
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 285,520 | $ 160,545 | $ 624,404 | $ 294,289 |
Basic weighted-average number of shares outstanding | 77,234 | 79,947 | 77,988 | 79,961 |
Dilutive common share equivalents | 960 | 1,463 | 1,095 | 1,532 |
Diluted weighted-average number of shares outstanding | 78,194 | 81,410 | 79,083 | 81,493 |
Basic earnings per share | $ 3.70 | $ 2.01 | $ 8.01 | $ 3.68 |
Diluted earnings per share | $ 3.65 | $ 1.97 | $ 7.90 | $ 3.61 |
Earnings per Share (Textuals) (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 208,654 | 142 | 107,544 | 2,001 |
Net Capital and Regulatory Requirements (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
---|---|
Broker-Dealer [Abstract] | |
Net capital | $ 279,982 |
Less: required net capital | 16,154 |
Excess net capital | $ 263,828 |
Subsequent Events - Dividend Declared (Details) - Subsequent Event - $ / shares |
Aug. 25, 2023 |
Aug. 11, 2023 |
---|---|---|
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.30 | |
Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Date to be Paid | Aug. 25, 2023 | |
Dividends Payable, Date of Record | Aug. 11, 2023 |
&UL[5I;<]HX%'[OK]!X9_9M"\8V@;:T$W-I=MNTF83M
M3A^%$5B-;'EDD81_OT /
M15T7Z_;C2L=+738 \_M34=1?+YH&]F\&7?X/4$L#!!0 ( ".& 5=(\GUR
M-0< %\< 8 >&PO=V]R:W-H965T 8$R>0>Z^&T 1G3S
M-JOY8M2F?B%TJXQ1Z_IR)04LZ4H GM\I91Z_5.^8VG>*\_\ 4$L#!!0 (
M ".& 5=4OG(5K@( $\' 8 >&PO=V]R:W-H965T .+CPTI@W0
M A337,5[TX$\*S(BL^&:I70LD:,22YLBM@[^-9LU#*;"NO_&H,10R*CT@65"
M:OXO34*ARJ"=1\.P^ZS%9SIY#,;>1NA5_%9")W:1Y]JX:%#8BJ=&G%@G@AS4
MEDD]-K1S +5$(18I'1.P\Y
M8F!HO0A<:ZB!.P=.&]!A>PK--U!#=X!8D(1GP'SC)8)W;H)W[@_>GSB==B/J
M@>FTNZ, :-M ? Y/IX']"0/3:1?2/YTV@34//',@;#J-F3H?
.CC8YNQ6RK@Q3YWNZTF=SK.T^F7-,#3]C/[9QL[Q/)$%%T)
M_B?+=;%T$@?E=$<:KA_$\1?:Q1,9ODQP9;_HV-EZ#LH:I479@<DE7MGWSO
M=#@!^.$+@* #!-<"< ? UP+"#A!>"X@Z@ W=;6.WPJV))NE"BB.2QAK83,.J
M;]&@%ZM,G6RUA%D&.)VN1)5#UFF.H*4$9SG1T-EJ^$$Y:(7$#JV(*M!G*"F%
MWC]6I,D9V'Q &0S?V"^BWQIV(!P B%0Y%)#2DF6&R4Y+FHDJ8YP16QT_HFND78NT&!%^ )^.HR
M?$TS@/L6'DS U]>O/@7?7+^Z?PYW(8U]+H,^EX'EPR_P;9NZYC9KA/^7,[3A
M72;_^O@$:8&M^?>4T"UW.,UMCJL[59.,+ATXCQ25!^JD/_[@Q][/4[*_)=GZ
M+4>SH_;*56BL2H>GH7^0)2QV=S#R;"8QE;)/,%XH,A%GU^I2-PK$E]4
MY(LP9^#D!:5N)J\H58AC96XCJ#&DGJ\_<_O9Z9VY_::$C4<;*PC] IIH.S8
M#OMX%LP&=;0>V_EQ!(;)0-V)=;U9@..PMVN%
ZA^(9YYY$SO
M=X;! '7?>$2P@ZY%Q'^'V["'NW3IQOY;CWH%ZB&B]OQW&ML;O6JL>S1PJ CX
M( V+-W
22U?$/.M=AJB@,$,P433@$XI3B